Notes to Accounts of Garware Hi-Tech Films Ltd.

Mar 31, 2023

Provisions and Contingent Liabilities & Assets

Provisions involving substantial degree of estimation in measurement are recognised when there is a present obligation as a result of past
events and it is probable that there will be an outflow of resources. Contingent Liabilities are not recognised but are disclosed in the notes.
Contingent Assets are neither recognised nor disclosed in the financial statements.

(q) Investment in Subsidiaries

Investments in subsidiaries are recognised at cost as per Ind AS 27.

(r) Employee Benefits

(i) Short-Term Obligations

Liabilities for wages and salaries, including non-monetary benefits that are expected to be settled wholly within 12 months after the
end of the period in which the employees render the related service are recognised in respect of employees’ services up to the end of
the reporting period and are measured at the amounts expected to be paid when the liabilities are settled.

(ii) Other Long-Term Employee Benefit Obligations

The liabilities for earned leave that are not expected to be settled wholly within 12 months are measured as the present value of
expected future payments to be made in respect of services provided by employees up to the end of the reporting period using the
projected unit credit method. The benefits are discounted using the Government Securities (G-Sec) at the end of the reporting period
that have terms approximating to the terms of the related obligation. Remeasurements as a result of experience adjustments and
changes in actuarial assumptions are recognised in the Statement of Profit and Loss.

(iii) Post-Employment Benefits

The Company operates the following post-employment schemes:

(a) Defined benefit plans such as Gratuity and Pension; and

(b) Defined contribution plans such as Provident Fund.

Defined Benefit Plans

The liability or asset recognised in the balance sheet in respect of defined benefit pension and gratuity plans is the present value of
the defined benefit obligation at the end of the reporting period less the fair value of plan assets. The defined benefit obligation is
calculated annually by actuaries using the projected unit credit method.

The present value of the defined benefit obligation is determined by discounting the estimated future cash outflows by reference
to market yields at the end of the reporting period on government bonds that have terms approximating to the terms of the related
obligation.

The net interest cost is calculated by applying the discount rate to the net balance of the defined benefit obligation and the fair value
of plan assets. This cost is included in employee benefit expense in the Statement of Profit and Loss.

Remeasurement gains and losses arising from experience adjustments and changes in actuarial assumptions are recognised in the
period in which they occur, directly in other comprehensive income. They are included in retained earnings in the statement of changes
in equity and in the balance sheet.

Defined Contribution Plans

Defined Contribution Plans such as Provident Fund etc., are charged to the Statement of Profit and Loss as incurred. Further for
certain employees, the monthly contribution for Provident Fund is made to a Trust administered by the Company. The interest payable
by the Trust is notified by the Government. The Company has an obligation to make good the shortfall, if any.

Termination Benefits

Termination benefits are payable when employment is terminated by the Company before the normal retirement date, or when an
employee accepts voluntary redundancy in exchange for these benefits. The Company recognises termination benefits at the earlier of
the following dates: (a) when the Company can no longer withdraw the offer of those benefits; and (b) when the Company recognises
costs for a restructuring that is within the scope of Ind AS 37 and involves the payment of terminations benefits. In the case of an offer
made to encourage voluntary redundancy, the termination benefits are measured based on the number of employees expected to
accept the offer. Benefits falling due for more than 12 months after the end of the reporting period are discounted to present value.

(s) Earnings Per Share

Earnings Per Share are calculated by dividing the net profit or loss for the year attributable to equity shareholders by the weighted average
number of equity shares outstanding during the year.

(t) Income Taxes

Deferred tax is provided using the balance sheet liability method, providing for temporary differences between the carrying amounts of
assets and liabilities for financial reporting purposes and the amounts used for taxation purposes. The amount of deferred tax provided
is based on the expected manner of realization or settlement of the carrying amount of assets and liabilities, using tax rates enacted or
substantially enacted at the balance sheet date. Deferred tax assets are recognised for all deductible temporary differences and unused
tax losses only if it is probable that future taxable amounts will be available to utilise those temporary differences and losses. Current and
deferred tax is recognised in profit or loss, except to the extent that it relates to items recognised in other comprehensive income or directly
in equity. In this case, the tax is also recognised in other comprehensive income or directly in equity, respectively. Current tax is determined
as the amount of tax payable in respect of taxable income for the period as per the provisions of Income Tax Act,1961.

Current tax is the expected tax payable on the taxable income for the year, using tax rates enacted or substantially enacted at the balance
sheet date, and any adjustment to tax payable in respect of previous years.

(u) Significant Accounting Judgements, Estimates and Assumptions

The preparation of financial statements requires the use of accounting estimates which, by definition, will seldom equal the actual results.
Management also needs to exercise judgement in applying the Company’s accounting policies. The management overview the areas
that involve a higher degree of judgement or complexity and of items which are more likely to be materially adjusted due to estimates and
assumptions turning out to be different than those originally assessed.

The key assumptions concerning the future and other key sources of estimation uncertainty at the reporting date, that have a significant risk
of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year, are described below. The
Company has based assumptions and estimates on parameters available when the financial statements were prepared. However existing
circumstances and assumptions about future developments may change due to market changes or circumstances arising that are beyond
the control of the Company. Such changes are reflected in the assumptions as and when they occur.

i. Taxes

The Company provides for tax considering the applicable tax regulations and based on reasonable estimates, management periodically
evaluates positions taken in the tax returns giving due considerations to tax laws and establishes provisions in the event if required
as a result of differing interpretation or due to retrospective amendments, if any. The recognition of deferred tax assets is based on
availability of sufficient taxable profits in the Company against which such assets can be utilised.

ii. Defined Benefit Obligations

The cost of the defined benefit plans and the present value of the obligation are determined using actuarial valuations. An actuarial
valuation involves making various assumptions that may differ from actual developments in the future. These include the determination
of the discount rate, future salary increases and mortality rates. Due to the complexities involved in the valuation and its long-term
nature, a defined benefit obligation is highly sensitive to changes in these assumptions. All assumptions are reviewed at each reporting
date. The parameters subject to change is the discount rate, escalation rate, expected rate of return and mortality rate. Future salary
increases are based on expected future inflation rates.

iii. Recoverability of Trade Receivables

Required judgements are used in assessing the recoverability of overdue trade receivables and for determining whether a provision
against those receivables is required. Factors considered include the credit rating of the counterparty, the amount and timing of
anticipated future payments and any possible actions that can be taken to mitigate risk of non-payment.

(v) Recent Accounting Pronouncements

Ministry of Corporate Affairs (“MCA”) notifies new standard or amendments to the existing standards under Companies (Indian Accounting
Standards) Rules as issued from time to time. On March 31,2023, MCA issued the Companies (Indian Accounting Standards) Amendment
Rules, 2023, applicable from April 1, 2023, as below:

i. Ind AS 1 - Presentation of Financial Statements

The amendments require companies to disclose the material accounting policies rather than significant accounting policies. Accounting
policy information, together with other information, is material when it can reasonably be expected to influence decisions of primary
users of general purpose financial statements.

ii. Ind AS 12 - Income Taxes

The amendments clarify how companies account for deferred tax on transactions such as leases and decommissioning obligations.
The amendments narrowed the scope of the recognition exemption in paragraphs 15 and 24 of Ind AS 12 so that it no longer applies
to transactions that, on initial recognition, give rise to equal taxable and deductible temporary differences.

iii. Ind AS 8 - Accounting Policies, Changes in Accounting Estimates and Errors

The amendments will help entities to distinguish between accounting policies and accounting estimates. The definition of a change
in accounting estimates has been replaced with a definition of accounting estimates. Under the new definition, accounting estimates
are “monetary amounts in financial statements that are subject to measurement uncertainty”. Entities develop accounting estimates if
accounting policies require items in financial statements to be measured in a way that involves measurement uncertainty.

The Company is assessing the impact of these changes if any and will accordingly incorporate the same in the financial statements for the
year ending March 31, 2024.

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Mar 31, 2018

1. COMPANY INFORMATION:

Garware Polyester Limited (‘the Company’) is engaged in the business of manufacturing of Polyester Films. The Company is Limited by Shares, incorporated and domicile in India and Equity Shares of the Company are listed on the Indian stock exchange BSE (Bombay Stock Exchange). The registered office of the company is located at Naigaon, Post Waluj, Aurangabad - 431 133.

The Financial Statements have been authorised for issue by the Board of Directors at their meeting held on May 29, 2018.

AMENDMENTS ISSUED, BUT NOT YET EFFECTIVE

Standards Issued but not yet effective

The Ministry of Corporate Affairs (MCA) notified the Companies (Indian Accounting Standards) Amendment Rules, 2018 on March 28, 2018. The Rules shall be effective from reporting period beginning on or after April 1, 2018.

(1) Ind AS 115 - Revenue from Contracts with Customers

Ind AS 115, Revenue from contracts with customers deals with revenue recognition and establishes principles for reporting useful information to users of Financial Statements about the nature, amount, timing and uncertainty of revenue and cash flows arising from an entity’s contracts with customers. Revenue is recognised when a customer obtains control of a promised goods or services and thus has the ability to direct the use and obtain the benefits from the goods or services in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods and services. The standard replaces Ind AS 18 Revenue and Ind AS 11 Construction contracts and related appendices.

The standard permits either a full retrospective or a modified retrospective approach for the adoption. There are consequential amendments to other Ind AS due to notification of Ind AS 115. The Company is in the process of evaluating the impact on the Financial Statements in terms of the amount and timing of revenue recognition under the new standard.

(2) Ind AS 21 - The Effects of Changes in Foreign Exchange Rates

The MCA has notified Appendix B to Ind AS 21, foreign currency transactions and advance consideration. The appendix clarifies how to determine the date of transaction for the exchange rate to be used on initial recognition of a related asset, expense or income where an entity pays or receives consideration in advance for foreign currency denominated contracts. The Company is in the process of evaluating the impact on the Financial Statements.

(3) Ind AS 40 - Investment Property

The amendments clarify that transfers to, or from, investment property can only be made if there has been a change in use that is supported by evidence. A change in use occurs when the property meets, or ceases to meet, the definition of investment property. A change in intention alone is not sufficient to support a transfer. The list of evidence for a change of use in the standard was re-characterised as a non-exhaustive list of examples and scope of these examples have been expanded to include Assets under construction/development and not only transfer of completed properties.

The amendment provides two transition options. Entities can choose to apply the amendment:

(i) Retrospectively without the use of hindsight; or

(ii) Prospectively to changes in use that occur on or after the date of initial application (i.e. April 1, 2018). At that date, an entity shall reassess the classification of properties held at that date and, if applicable, reclassify properties to reflect the conditions that exist as at that date. There is no impact of this amendment to the Company.

(4) Ind AS 12 - Income Taxes

The amendments clarify the accounting for deferred taxes where an asset is measured at fair value and that fair value is below the asset’s tax base. They also clarify certain other aspects of accounting for Deferred Tax Assets set out below:

A temporary difference exists whenever the carrying amount of an asset is less than its tax base at the end of the reporting period.

The estimate of future taxable profit may include the recovery of some of an entity’s assets for more than its carrying amount if it is probable that the entity will achieve this. For example, when a fixed-rate debt instrument is measured at fair value, however, the entity expects to hold and collect the contractual cash flows and it is probable that the asset will be recovered for more than its carrying amount.

Where the tax law restricts the source of taxable profits against which particular types of Deferred Tax Assets can be recovered, the recoverability of the deferred tax Assets can only be assessed in combination with other Deferred Tax Assets of the same type.

Tax deductions resulting from the reversal of deferred tax Assets are excluded from the estimated future taxable profit that is used to evaluate the recoverability of those Assets. This is to avoid double counting the deductible temporary differences in such assessment.

An entity shall apply the amendments to Ind AS 12 retrospectively in accordance with Ind AS 8. However, on initial application of the amendment, the change in the opening Equity of the earliest comparative period may be recognised in opening retained earnings (or in another component of Equity, as appropriate), without allocating the change between opening retained earnings and other components of Equity. There is no impact of this amendment to the Company.

(5) Ind AS 28 - Investment in Associates and Ind AS 112 - Disclosure of Interest in Other Entities

Amendment clarifies that:

(i) Disclosure requirements of Ind AS 112 are applicable to interest in other entities classified as held for sale except for summarised financial information.

(ii) The option available with venture organizations, mutual funds, unit trusts and similar entities to measure their Investments in associate or joint ventures at Fair Value Through Profit or Loss (FVTPL) is available for each investment in an associate or joint venture. There is no impact of this amendment to the Company.

(ii) Terms / Rights attached to Equity Shares

The Company has only one class of Equity Shares having a par value of Rs. 10/-. Each shareholder of Equity Shares is entitled to one vote per share. In the event of liquidation of the Company, the holders of Equity Shares will be entitled to receive any of the remaining Assets of the Company, after distribution of all preferential amounts. The distribution will be in proportion to the number of Equity Shares held by the Shareholders. The Company declares and pays Dividend in Indian (Rs.).

Final Dividend Rs. 2 /- Per Equity Share for the Financial year ended 31st March, 2018 proposed by board of directors in its meeting held on May 29, 2018 is subject to approval of Shareholders in the ensuing Annual General Meeting and if approved, would result in Cash outflow of Rs.559.24 Lakhs including dividend distribution tax of Rs.94.59 Lakhs.

Nature and Purpose of Other Reserves:

1 Capital Redemption Reserve

Capital Redemption Reserve is towards the redemption of Preference Shares allotted to Industrial Development Bank of India (IDBI) in FY 2014 - 15.

2 Securities Premium Reserve

Securities Premium Reserve is towards the premium on issue of Equity Shares. This reserve is utilized in accordance with the provisions of the Companies Act, 2013.

3 Capital Reserve

Capital reserve of Rs.4,439.48 was created on demerger of manufacturing business of erstwhile Garware Chemicals Limited (GCL) as per the scheme of arrangement between the Company and GCL under provisions of section 391 - 394 of the Companies Act, 1956 and Rs.61,842.43 Lakhs (Net of Deferred Tax) on account of fair valuation of Property, Plant and Equipment done as at the transition date of Ind AS. Capital reserve also includes Revaluation Reserve amounting to Rs.4,584.49 Lakhs pertains to revaluation of Land at Mumbai at Vile Parle in 2007 and Rs.18,755.94 Lakhs revaluation of land situated at Aurangabad and Nashik in FY 2012 - 13 and Rs. (13,235.03) Lakhs pertains to impairment of Assets taken over from GCL in FY 2012 - 13 and Rs.2.07 Lakhs amount paid-up on cancellation of 82,756 Shares.

4 Fair Value Through Other Comprehensive Income (FVTOCI) Equity Instruments

The Company has elected to recognise changes in fair value of certain Investments in Equity Instruments through Other Comprehensive Income. These changes are accumulated within the FVTOCI Equity Instruments reserve within Equity. The Company transfers amounts from this reserve to retained earnings when the relevant Equity Instruments are derecognised.

b) The Company has given counter-guarantees for Rs.6,101.99 Lakhs (March 31, 2017: Rs.4,456.29 Lakhs) to banks in respect of guarantees given by the banks to third parties for purchase of equipments, supply of goods, clearance of goods from customs, excise bonds, etc.

c) Letters of Credit opened on behalf of the Company by banks for purchase of materials and equipment amount to Rs.1,150.38 Lakhs (March 31, 2017: Rs.22,237.95 Lakhs).

d) Capital Commitments

Estimated amount of contracts remaining to be executed on capital account and not provided for Rs.203.72 Lakhs (March 31, 2017: Rs.161.77 Lakhs) against which an advance of Rs.9.21 Lakhs (March 31, 2017: Rs.20.00 Lakhs) has been paid.

e) Finance Leases

The Company has entered into finance leases arrangements. The future minimum lease payments are as follows:

f) Operating Leases

The Company has taken various residential/ commercial premises and vehicles on operating leases. These operating leases are in the nature of ‘cancellable lease’ and therefore disclosure as per Ind AS 17 - Leases is not required

A Defined Contribution Plan

The Company has certain Defined Contribution Plans. Contributions are made to provident fund for employees at the rate of 12% of basic salary as per regulations. The contributions are made to registered provident fund administered by the government, however certain employees are covered under the contributory plans with trust "Garware Polyester Limited Office Staff and Officers Provident Fund". The expense recognised during the period towards defined contribution plan is Rs.225.25 Lakhs (March 31, 2017 - Rs.227.93 Lakhs).

B Compensated absences

The leave obligations is towards encashment of balance leave. The provision reversed during the year is Rs.151.33 Lakhs and provided during the year ended March 31, 2017 is Rs.46.73 Lakhs.

C Gratuity

The Company provides for gratuity for employees as per the Payment of Gratuity Act, 1972. The gratuity plan is a funded plan.

VI Risk Exposure

1 Asset Volatility : All plan assets are maintained in a trust managed by a public sector insurer viz. LIC of India. LIC has a sovereign guarantee and has been providing consistent and competitive returns over the years. The company has opted for a traditional fund wherein all Assets are invested primarily in risk averse markets. The company has no control over the management of funds but this option provides a high level of safety for the total corpus. A single account is maintained for both the investment and claim settlement and hence 100% liquidity is ensured. Also interest rate and inflation risk are taken care of.

2 Discount Rate Risk : Variations in the discount rate used to compute the present value of the liabilities may seem small, but in practice can have a significant impact on the defined benefit liabilities.

3 Future Salary Increase and Inflation Risk : Since price inflation and salary growth are linked economically, they are combined for disclosure purposes. Rising salaries will often result in higher future defined benefit payments resulting in a higher present value of liabilities especially unexpected salary increases provided at management''s discretion may lead to uncertainties in estimating this increasing risk.

4 Asset-Liability Mismatch Risk : Risk arises if there is a mismatch in the duration of the assets relative to the liabilities. By matching duration with the defined benefit liabilities, the Company is successfully able to neutralize valuation swings caused by interest rate movements.

The remuneration of Rs.944.67 Lakhs (March 31, 2017: Rs.868.66 Lakhs) paid to the Managing Director, Joint Managing Directors and Director is as per the sanction received from the Central Government.

Key Managerial Personnel who are under the employment of the company are entitled to post employment benefits and other long term employee benefits recognised as per Ind AS 19 - ‘Employee Benefits’ in the Financial Statements. As these employee benefits are lump sum amounts provided on the basis of actuarial valuation, the same is not included above.

i) Fair Value Hierarchy

The fair values of the Financial Instruments that are recognised and measured at fair value are disclosed in the Financial statements. To provide an indication about the reliability of the inputs used in determining fair value, the Company has classified its Financial Instruments into three levels prescribed under the accounting standard.

Level 1: Level 1 hierarchy includes Financial Instruments measured using quoted prices. This includes quoted equity instruments. The fair value of all the Equity Instruments which are treated in the stock exchanges is valued using the closing price as at the reporting period.

Level 2: The fair value of derivatives and investment in unquoted equity and unquoted mutual funds instruments is determined using valuation techniques which maximise the use of observable market data and rely as little as possible on entity-specific estimates. If all significant inputs required to fair value an instrument are observable, the instrument is included in Level 2.The mutual funds are valued using the closing NAV.

Level 3: If one or more of the significant inputs is not based on observable market data, the instrument is included in level 3.

ii) Valuation Technique used to Determine Fair Value

Specific valuation techniques used to value Financial Instruments include:

The use of quoted market prices or dealer quotes for similar instruments.

The fair value of forward foreign exchange contracts is determined using forward exchange rates at the Balance Sheet date.

The fair value of mutual funds is calculated by valuing them at closing NAV.

iii) Fair Value of Financial Assets and Liabilities Measured at Amortised Cost

The carrying amount of Financial Assets and Financial Liabilities measured at amortised cost in the Financial statements are a reasonable approximation of their fair values since the Company does not anticipate that the carrying amounts would be significantly different from the values that would eventually be received or settled.

2. FINANCIAL RISK MANAGEMENT

The Company''s activities expose it to market risk, liquidity risk and credit risk. In order to minimise any adverse effects on the Financial performance of the Company, derivative Financial Instruments, such as foreign exchange forward contracts are taken.

The Company''s risk management is carried out by the Company''s Treasury Department under policies approved by the Board of Directors. The board provides written principles for overall risk management, as well as policies covering specific areas, such as foreign exchange risk, interest rate risk, credit risk, use of derivative Financial Instruments and non-derivative Financial Instruments, and investment of excess liquidity.

(A) Credit Risk

Credit risk refers to a risk that counterparty will default on its contractual obligations resulting in financial loss to the Company. The Company is exposed to credit risk from its operating activities primarily trade receivables, derivative Financial Instruments, investment in mutual funds, deposits held with banks, loans and other receivables.

The Company has a policy of only dealing with counterparties that have sufficiently high credit rating. The Company''s exposure and credit ratings of its customers are continuously monitored and the aggregate value of transactions is reasonably spread amongst the counterparties.

For investment in mutual funds, derivative Financial Instruments and balances held with banks, banks and recognised financial institutions with only high credit rating are accepted.

(i) Trade Receivables

Credit risk arises from the possibility that customer will not be able to settle their obligations as and when agreed. To manage this, the Company periodically assesses the financial reliability of customers, taking into account the Financial condition, current economic trends, analysis of historical bad debts, ageing of accounts receivable and forward looking information. Individual credit limits are set accordingly.

(B) Liquidity Risk

Liquidity risk is the risk that the Company will encounter difficulty in raising funds to meet commitments associated with Financial Instruments that are settled by delivering cash or another Financial asset. Liquidity risk may result from an inability to sell a Financial asset quickly at close to its fair value.

Prudent liquidity risk management implies maintaining sufficient cash and marketable securities and the availability of funding through an adequate amount of committed credit facilities to meet obligations when due and to close out market positions. Due to the dynamic nature of the underlying business, the Company''s treasury maintains flexibility in funding by maintaining availability under committed credit lines.

(C) Market Risk

I) Foreign Currency Risk

Foreign currency risk is the risk that the fair value or future cash flows of an exposure will fluctuate due to changes in foreign exchange rates. The company is engaged in international trade and thereby exposed to foreign exchange risk arising from foreign currency transactions, primarily with respect to the USD and EUR. Foreign exchange risk arises from future commercial transactions and recognised Assets and Liabilities denominated in a currency that is not the company''s functional currency (Rs.). The Company''s risk management policy is to hedge sales and purchases. The Company uses foreign exchange forward contracts to hedge its exposure in foreign currency risk.

II) Interest Rate Risk

Interest rate risk is the risk that the fair value of future cash flows of a Financial Instrument will fluctuate because of changes in market interest rates. The Company is exposed to interest rate risk on Financial Liabilities such as borrowings, both non - current and current. The Company has not used any interest rate derivatives. The Company is also exposed to interest rate risk on its Financial Assets that include fixed deposits and liquid investments such as deposits which are part of cash and cash equivalents. Since all these are generally for short durations, the Company believes it has manageable risk for achieving satisfactory returns.

3. CAPITAL MANAGEMENT

a) Risk Management

The Company''s objectives when managing capital are to safeguard their ability to continue as a going concern, so that they can continue to provide returns for shareholders and benefits for other stakeholders, and maintain an optimal capital structure to reduce the cost of capital. For the purpose of the Company''s capital management, capital includes issued Equity capital and all other Equity reserves attributable to the Equity holders of the parent. The primary objective of the Company''s capital management is to maximise the shareholders value. The Company manages its capital structure and makes adjustments in light of changes in economic conditions and the requirements of the financial covenants.

No changes were made in the objectives, policies or processes for managing capital during the years ended March 31, 2018 and March 31, 2017.

4. First-Time Adoption of Ind AS

The accounting policies set out in Note 1 have been applied in preparing the Financial Statements for the year ended March 31, 2018, the comparative information presented in these Financial Statements for the year ended March 31, 2017 and in the preparation of an opening Ind AS Balance Sheet at April 1, 2016 (the Company''s date of transition). In preparing its opening Ind AS Balance Sheet, the Company has adjusted the amounts reported previously in Financial Statements prepared in accordance with the accounting standards notified under Companies (Accounting Standards) Rules, 2006 (as amended) and other relevant provisions of the Act previous GAAP ). An explanation of how the transition from previous GAAP to Ind AS has affected the Company''s financial position, financial performance and cash flows is set out in the following tables and notes.

I Exemptions Availed

a) Investment in Subsidiary and Associate

Ind AS 101 permits a first-time adopter to measure an investment in Subsidiary, associate or a joint venture either at cost determined as per Ind AS 27 or deemed cost being the fair value as at the date of transition or the previous GAAP carrying amount as at that date. Accordingly, the Company has elected to measure its investment in Subsidiary at the previous GAAP carrying value.

b) Fair Value as Deemed Cost - Property, Plant and Equipment and Intangible Assets

Ind AS 101 permits a first time adopter to fair value Property, Plant and Equipment and use that as deemed cost as at the transition date. Accordingly, the Company has opted for this exemption and measured its Property, Plant and Equipment at fair value as at the date of transition to Ind AS.

c) Government Grants

The requirements of Ind AS 20 - Accounting for Government Grants and Disclosure of Government Assistance and Ind AS 109 -Financial Instruments, in respect of recognition and measurement of interest free loans from government authorities is opted to be applied prospectively to all grants received after the date of the transition to Ind AS. However, as permitted by Ind AS Transition Facilitation Group (ITFG), the carrying amount of such interest free loans as per previous GAAP is present value by considering the effective interest rate as on the transition date.

d) Designation of Previously Recognised Financial Instruments

Ind AS 101 allows an entity to designate Investments in Equity Instruments at FVTOCI on the basis of the facts and circumstances at the date of transition to Ind AS.

The Company has elected to apply this exemption for its investment in Equity Instruments.

II Exceptions Applied a) Estimates

The estimates as at April 1, 2016 and March 31, 2017 are consistent with those made for the same dates in accordance with Previous GAAP. The estimates used by the Company to present these amounts in accordance with Ind AS, reflect conditions at April 1, 2016 the date of transition to Ind AS and as of March 31, 2017.

V Impact of Ind AS Adoption on the Statements of Cash Flows for the year ended March 31, 2017

The transition adjustments are not expected to have any material impact on the statement of cash flows for the year ended March 31, 2017.

VI Notes to First-Time Adoption

a Recognition of Borrowings at Amortised Cost

I nd AS 109 requires transaction costs incurred towards origination of borrowings to be deducted from the carrying amount of borrowings on initial recognition. These costs are recognised in the Profit or Loss over the tenure of the borrowing as part of the interest expense by applying the effective interest rate method. Under previous GAAP, these transaction costs were charged to Profit or Loss as and when incurred. Accordingly, borrowings as at April 1, 2016 have been reduced by Rs.30.91 Lakhs with a corresponding adjustment to property plant and equipment. The transaction costs are accrued as a part of the interest expense for year ended March 31, 2017 equivalent to Rs.14.14 Lakhs. The profit for the year ended March 31, 2017 reduced by the equivalent interest expense.

b Recognition of Security Deposits at Amortised Cost

Under the previous GAAP, interest free lease security deposits (that are refundable on completion of the lease term) were recorded at their transaction value. Under Ind AS, all Financial Assets are required to be recognised at fair value. Accordingly, the Company has fair valued these security deposits under Ind AS. Difference between the fair value and transaction value of the security deposit has been recognised as prepaid rent. Consequent to this change, the amount of security deposits decreased by Rs.21.04 Lakhs as at March 31, 2017 (April 1, 2016 Rs.33.13 Lakhs). The prepaid decrease by Rs.18.38 Lakhs as at March 31, 2017 (April 1, 2016 Rs.30.37 Lakhs). The profit for the year and total Equity as at March 31, 2017 decreased by Rs.0.11 Lakhs due to amortisation of the prepaid rent of Rs.11.99 Lakhs which is partially off-set by the notional interest income of Rs.12.10 Lakhs recognised on security deposits.

c Fair Valuation of Financial Instruments

Under Ind AS, the Company has recognized the Financial Instruments under three categories i.e. Fair Value Through Profit and Loss (FVTPL), Fair Value Through Other Comprehensive Income (FVTOCI) and at amortized cost. On the date of transition, the fair value impact on FVTPL and FVTOCI Instruments has been taken to retained earnings and Other Comprehensive Income (OCI) respectively. As at March 31, 2017 the fair value impact on FVTPL Instruments has been taken in statement of Profit and Loss whereas fair value impact on FVTOCI Instruments has been routed through OCI. As at April 1, 2016 the Company has exercised one time option and classified the Investments in Equity Instruments as FVTOCI. The Gain / (Loss) on any future extinguishment of such Equity Investments will not be reflected in statement of Profit and Loss.

d Fair Value as Deemed Cost - Property, Plant and Equipment

The Company has elected the option of fair value as deemed cost for Property, Plant and Equipment as on the date of transition to Ind AS. This has resulted in net increase of Rs.58,358.15 Lakhs with corresponding increase in Capital Reserve.

e Fair Valuation of Derivative Financial Instruments

Under the previous GAAP, derivative Financial Instruments in the nature of forward contracts entered into to hedge sales/ purchases were fair valued and was recognized as per the guidance applicable under the previous GAAP. However, as per Ind AS 109 Financial Instruments, all derivative Financial Instruments have to be measured at fair value at each reporting date. Consequently, profit for the year and total Equity increased by Rs.5.11 Lakhs as at March 31, 2017.

f Recognition of Sales Tax Deferral Loan as Government Grant

Under Previous GAAP, the carrying value of interest free loan (Sales Tax Deferral Loan) was recognised at the principal amounts payable by the Company. Under Ind AS, interest free borrowing being a Financial liability is required to be recognised initially at fair value and subsequently measured at amortised cost using the effective interest method. The difference between such fair value and the carrying value is recognised as deferred income (Government grant) disclosed under other liabilities. On the date of transition, sales tax deferral loans have been recognised at fair value, thereby leading to creation of Government grant amounting to Rs.206.91 Lakhs. The above changes do not affect Equity as at date of transition to Ind AS. It has resulted in decrease in borrowings and increase in Other Liabilities by Rs.206.91 Lakhs as at 1st April, 2016. The interest expense on the sales tax deferral loan is Rs.71.44 Lakhs and income on Government grant is Rs.76.53 Lakhs for the year ended March 31, 2017.

g Remeasurement of Post-Employment Benefit Obligations

Under Ind AS, remeasurement i.e. actuarial gains and losses and the return on plan assets, excluding amounts included in the net interest expense on the net Defined Benefit Liability are recognised in Other Comprehensive Income instead of Profit or Loss. Under the previous GAAP, these remeasurement were forming part of the Profit or Loss for the year. As a result of this change, the profit for the year ended March 31, 2017 decreased by Rs.64.19 Lakhs. There is no impact on the total Equity as at March 31, 2017.

h Trade Receivables Discounted

The carrying amounts of the trade receivables includes receivable which have been discounted with banks. The Company has the obligation to pay to the bank in case the customer makes a default in payment. Hence, the company has continued to recognise the trade receivables along with a corresponding liability of equivalent amount under current borrowings.

i Deferred Tax

Deferred Tax has been recognised on the adjustments made on transition to Ind AS.

5. Previous GAAP figures have been reclassified / regrouped to conform to the presentation requirements under Ind AS and the requirements laid down in Division II to the Schedule III of the Companies Act, 2013.

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Mar 31, 2016

Out of the above:

254,764 Equity Shares of Rs. 10/- each fully paid-up issued to the shareholders of Garware Chemicals Limited (GCL) as per the scheme of arrangement under Section 391 to 394 of the Companies Act, 1956 on 14^th November, 2011 (Previous Year 2,54,764). Terms / Rights attached to Shares:

Equity Shares:

The company has only one class of equity shares having a par value of Rs. 10/- per share. Each equity shareholder is entitled to One Vote per share. The company declares and pays dividends in Indian Rupees. The dividend if and proposed by the board of directors is subject to approval of shareholders in the ensuing Annual General Meeting.

As per the Companies Act, 2013, the holders of equity shares will be entitled to receive remaining assets of the company, after distribution of all preferential amounts in the event of liquidation of the company. The distribution will be in proportion to the number of equity shares held by the shareholder.

Preference Shares:

The company has fully redeemed the Preference Shares amounting to Rs. 5,446.00 Lakhs by paying Rs. 4,000.00 Lakhs in the Financial Year 2014-15 as One Time Settlement in full and final payment. The difference of Rs. 1,446.00 Lakhs has been credited in the Statement of Profit and Loss under Other Income in Financial Year 2014-15.

1) Term Loan of Rs. 4,665.21 Lakhs (Previous Year Rs. 7,604.94 Lakhs) are secured by first pari-passu charge on Fixed Assets of the company both present and future except Land and Building at Vile Parle, Mumbai, and also by way of second pari-passu charge on current assets of the company. The loans are repayable in 20 quarterly installments from quarter ended March 2011 till December 2018.

2) Fixed Assets Finances of Rs. 203.26 Lakhs (Previous Year Rs. 310.12 Lakhs) are secured by hypothecation of specific assets. The loans are repayable in 60 monthly / 20 quarterly installments. The installments are payable from December 2011 till January 2020 covering all loans taken at various dates.

3) Deferral Loan from SICOM is payable from April 2016 to April 2026.

4) The rate of interest on Rupee Loan @ 12.75% to 14.05% p.a. and on Fixed Assets Loan @ 11.80% to 12.30% p.a.

a) Cash / Packing Credit Loans are secured by hypothecation of all the current assets including all stocks, book debts etc. of the Company and further secured by a second charge on fixed assets of the company excluding property at Vile Parle.

b) Interest on Working Capital (Rupee) Loans ranges between 10.45% to 16.70% p.a. and Foreign Currency Loans LIBOR 2.5% to LIBOR 3.50% p.a.

# These Figures do not include any amount due and outstanding to be credited to the Investor Education and Protection Fund.

NOTES:

1. Freehold Land and Leasehold Land is revalued on 31^st March, 2013 with reference to the then current market prices, amount added on revaluation is Rs. 13,900.30 Lakhs and Rs. 4,855.64 Lakhs respectively; the revalued amount substituted for historical cost on 31^st March, 2013 is Rs. 25,476.92 Lakhs and Rs. 6,719.00 Lakhs respectively.

2. In accordance with Accounting Standard (AS-11) and Amendment Rules, 2009 on AS-11 Notified by the Government of India on 31.03.2009 and subsequent amendment dtd. 29^th December, 2011; the company has capitalized Rs. 23.01 Lakhs to Plant and Machinery (Previous Year Rs. 45.52 Lakhs) on account of exchange rate difference on Foreign Currency Loans.

NOTES:

1. Freehold Land and Leasehold Land is revalued on 31^s1 March, 2013 with reference to the then current market prices, amount added on revaluation is Rs. 13,900.30 Lakhs and Rs. 4,855.64 Lakhs respectively; the revalued amount substituted for historical cost on 31^s1 March, 2013 is Rs. 25,476.92 Lakhs and Rs. 6,719.00 Lakhs respectively.

2. In accordance with Accounting Standard (AS-11) and Amendment Rules, 2009 on AS-11 Notified by the Government of India on 31.03.2009 and subsequent amendment dtd. 29^th December, 2011; the company has capitalized Rs. 45.52 Lakhs to Plant and Machinery (Previous Year Rs. 221.97 Lakhs) on account of exchange rate difference on Foreign Currency Loans.

3. In accordance with the provisions of Schedule II of the Companies Act, 2013, in case of fixed assets whose useful life as at 1^st April, 2014 is Nil, the carrying value (Net of Residual Value) amounting to Rs. 228.15 Lakhs (Net of Deferred Tax of Rs. 117.50 Lakhs) as transitional provision has been recognized in the retained earnings.

4. The company has redeemed during the Financial Year 2014-15, 54,46,000, 0.01% Cumulative Redeemable Preference Shares of Rs. 100/each aggregating to Rs. 5,446.00 Lakhs issued and allotted to the IDBI Bank Ltd., by paying Rs. 4,000.00 Lakhs as One Time Settlement in full and final settlement of the above-mentioned Preference Shares. The difference of Rs. 1,446.00 Lakhs has been treated as Other Income in the year 2014-15.

5. The remuneration of Rs. 888.43 Lakhs paid to the Managing Director, Joint Managing Directors and Director is as per the sanction received from the Central Government. (Previous Year Rs. 965.72 Lakhs which was subject to sanction of the Central Government for which approval of Rs. 957.08 Lakhs has been received during the year and balance Rs. 8.64 Lakhs has been recovered. Rs. 89.61 Lakhs for the Financial Year 2013-14 which was pending under approval Rs. 75.11 Lakhs approval has been received during the year and balance Rs. 14.50 Lakhs has been recovered).

6. LEASES

The company has entered into Finance and Operating Lease Agreements. As required under the Accounting Standard - 19 on ‘Leases’, the future minimum lease payments on account of each type of lease are as follow:

The company has taken various residential / commercial premises and vehicles on operating leases. These operating lease are in the nature of "cancellable lease" therefore disclosure as per Accounting Standard - 19 is not required.

7. Legal and Professional Charges include Rs. 6.97 Lakhs (Previous Year Rs. 6.25 Lakhs) paid to some of the Partners of the Auditors and Rs. 5.37 Lakhs (Previous Year Rs. 5.56 Lakhs) paid to a firm in which one of the Director is a proprietor for Corporate Law and Tax Services.

8. SEGMENT REPORTING

a) The company is only in one line of business namely - Polyester Film.

b) The Segment Revenue in the Geographical Segment considered for disclosure are as follow:

i) Revenue within India includes sales to customers located within India.

ii) Revenue outside India includes sales to customers located outside India including Export Benefits / Incentives.

9. CAPITAL AND OTHER COMMITMENTS

Estimated amount of contracts remaining to be executed on capital account and not provided for Rs. 222.06 Lakhs (Previous Year Rs. 279.46 Lakhs) against which an advance of Rs. 27.09 Lakhs (Previous Year Rs. 27.19 Lakhs) has been paid.

b) The Company has given counter-guarantees for Rs. 4,342.99 Lakhs (Previous Year Rs. 6,606.34 Lakhs) to Banks in respect of guarantees given by the Banks to third parties for Purchase of Equipments, Supply of Goods, Clearance of Goods from Customs, Excise Bonds, etc.

c) Letters of Credit opened on behalf of the Company by Banks for purchase of materials and equipment amount to Rs. 14,797.71 Lakhs (Previous Year Rs. 22,506.53 Lakhs).

d) Bills of Exchange discounted under Bill Marketing Scheme amount to Rs. 2,947.15 Lakhs (Previous Year Rs. 3,174.72 Lakhs).

10. FINANCIAL AND DERIVATIVES INSTRUMENTS

a) Derivatives contracts entered into by the company and outstanding as on 31^st March, 2016: i) Forward Contract is Rs. 2,079.05 Lakhs (Previous Year Rs. 1,864.86 Lakhs).

b) Foreign Currency Exposure that are not hedged by derivatives instruments as on 31^st March, 2016 amounts to Rs. 8,696.81 Lakhs (Previous Year Rs. 7,323.28 Lakhs). The unhedged exposures are naturally hedged by future foreign currency earning and earnings linked to foreign currency.

11. The company is required to spend an amount of Rs. 35.35 Lakhs (Previous Year Rs. 41.05 Lakhs) during the year on CSR expenditure as per the Section 135 of the Companies Act, 2013 read with Schedule VII thereof and company has spent Rs. 60 Lakhs (Previous Year Rs. 60 Lakhs) during the year by way of contribution to the fund of Garware Charitable Trust.

12. The previous year''s figure have been re-grouped / reclassified to conform to this year''s classification.

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Mar 31, 2015

Out of the above:

(i) 200,000 Equity Shares of Rs. 10/- each were allotted as fully paid up to various schemes operating under UTI Assets Management Company Ltd. at a premium of Rs. 22.67/- per share on 23rd December, 2008 as per arrangement. (Previous Year 200,000).

(ii) 254,764 Equity Shares of Rs. 10/- each fully paid-up issued to the shareholders of Garware Chemicals Limited (GCL) as per the scheme of arrangement under Section 391 to 394 of the Companies Act, 1956 on 14th November, 2011 (Previous Year 254,764).

(iii) 5,446,000 0.01% Cumulative Redeemable Preference Shares of Rs. 100/- each were allotted as fully paid up to IDBI at par (4,954,000 on 7th November, 2007 and 492,000 on 19th June, 2008) as per arrangement (Previous Year 5,446,000).

Terms / Rights attached to Shares:

Equity Shares:

The company has only one class of equity shares having a par value of Rs. 10/- per share. Each equity shareholder is entitled to One Vote per share. The company declares and pays dividends in Indian Rupees. The dividend proposed by the board of directors is subject to approval of shareholders in the ensuing Annual General Meeting.

As per the Companies Act, 2013, the holders of equity shares will be entitled to receive remaining assets of the company, after distribution of all preferential amounts in the event of liquidation of the company. The distribution will be in proportion to the number of equity shares held by the shareholder.

Preference Shares:

The Preference Shares amounting to Rs. 4,954.00 Lakhs allotted on 07.11.2007 were redeemable in 3 equal installments from 1st April, 2014 to 1st April, 2016 and Rs. 492.00 Lakhs allotted on 19.06.2008 were redeemable in single installment on 1st April, 2016. These Preference Shares carry a fixed cumulative dividend of 0.01% per annum.

The company has fully redeemed the above Preference Shares amounting to Rs. 5,446.00 Lakhs by paying Rs. 4,000.00 Lakhs as One Time Settlement in full and final payment. The difference of Rs. 1,446.00 Lakhs has been credited in the Statement of Profit and Loss Account under Other Income.

1) Term Loan of Rs. 7,604.94 Lakhs (Previous Year Rs. 9,154.66 Lakhs) are secured by first pari-passu charge on Fixed Assets of the company both present and future except Land and Building at Vile Parle, Mumbai, and also by way of second pari-passu charge on current assets of the company. The loans are repayable in 20 quarterly installments from quarter ended March 2011 till December 2018.

2) Fixed assets finances of Rs. 310.12 Lakhs (Previous Year Rs. 213.49 Lakhs) are secured by hypothecation of specific assets. The loans are repayable in 60 monthly / 20 quarterly installments. The installments are payable from October 2010 till January 2020 covering all loans taken at various dates.

3) Deferral Loan from SICOM is payable from April 2016 to April 2026.

4) The rate of interest on Foreign Currency Loans are at LIBOR 7.5%, on Rupee Loan @ 12.75% to 14.05% p.a. and on Fixed Assets Loan @ 9.94 % to 11.80% p.a.

a) Cash / Packing Credit Loans are secured by hypothecation of all the current assets including all stocks, book debts etc. of the company and further secured by a second charge on fixed assets of the company excluding property at Vile Parle.

b) Interest on Working Capital (Rupee) Loans ranges between 11% to 15.80% p.a. and Foreign Currency Loans Libor 2.5% to Libor 3.50% p.a.

2. The company has redeemed during the year 54,46,000, 0.01% Cumulative Redeemable Preference Shares of Rs. 100/- each aggregating to Rs. 5,446.00 Lakhs issued and allotted to IDBI Bank Ltd., by paying Rs. 4,000.00 Lakhs as One Time Settlement in full and final settlement of the above-said Preference Shares. The difference of Rs. 1,446.00 Lakhs has been treated as Other Income.

3. The remuneration of Rs. 965.72 Lakhs paid to the Managing Director, Joint Managing Directors and Director are subject to the sanction of the Central Government in respect of which applications have been made and are pending with the Government. (Previous Year Out of Rs. 237.82 Lakhs which was subject to sanction of the Central Government, Rs. 89.61 Lakhs are still pending under approval for which revised application has been made).

4. LEASES

The company has entered into Finance and Operating Lease Agreements. As required under the Accounting Standard 19 on 'Leases', the future minimum lease payments on account of each type of lease are as follows:

a. Operating Leases

The company has taken various residential / commercial premises and vehicles on operating leases. These operating lease are in the nature of "cancellable lease" therefore disclosure as per Accounting Standard - 19 is not required.

5. Legal and Professional Charges include Rs. 6.25 Lakhs (Previous Year Rs. 5.75 Lakhs) paid to some of the Partners of the Auditors and Rs. 5.56 Lakhs paid to a firm in which one of the Director is a proprietor, (Previous Year Rs. 4.67 Lakhs) for Corporate Law and Tax Services.

6. The Company has expensed out / written off Sales Tax receivable of Rs. 1,684.36 Lakhs in prior years pursuant to an amendment of MVAT Act by the Government of Maharashtra with retrospective effect. However, as per legal opinion obtained by the company, this amendment was not applicable to CST. Accordingly, the balance amount of Rs. 622.16 Lakhs out of Rs. 1,178.30 Lakhs relating to CST which has been expensed out earlier, is written back by the company in the previous year.

7. SEGMENT REPORTING

a) The company is only in one line of business namely - Polyester Films.

b) The Segment Revenue in the Geographical Segment considered for disclosure are as follows:

i) Revenue within India includes sales to customers located within India.

ii) Revenue outside India includes sales to customers located outside India including Export Benefits / Incentives.

8. RELATED PARTY DISCLOSURES

a) List of Related Parties

Subsidiary Garware Polyester International Limited

Step down Subsidiary Global Pet Films Inc.

Key Management Personnel Shri. S. B. Garware - Chairman and Managing Director

Mrs. S. S. Garware - Director

Mrs. Monika Garware Modi - Vice Chairperson & Joint Managing Director

Mrs. Sarita Garware Ramsay - Joint Managing Director

Ms. Sonia S.Garware - Director

Mr. M. S. Adsul - Director - Technical

Entities in which some Garware Industriees Ltd. of the Directors are Great View Real Estates Pvt. Ltd. interested

9. CAPITAL AND OTHER COMMITMENTS

Estimated amount of contracts remaining to be executed on capital account and not provided for Rs. 279.46 Lakhs (Previous Year Rs. 1,053.31 Lakhs) against which an advance of Rs. 27.19 Lakhs (Previous Year Rs. 99.01 Lakhs) has been paid.

10. CONTINGENT LIABILITIES

a) Contingent Liabilities not provided for - As at As at 31.03.2015 31.03.2014 Rs. in Lakhs Rs. in Lakhs

Disputed matters in appeal / contested in respect of:

Income Tax 1,404.81 1,487.64

Excise Duty and Service Tax 44.20 477.16

Sales Tax 1,178.30 900.96

Local Body Tax 383.06 383.06

Maharashtra State Electricity Board (MSEB) 27.72 27.72

TOTAL 3,038.09 3,276.54

b) The Company has given counter-guarantees for Rs. 6,606.34 Lakhs (Previous Year Rs. 5,182.57 Lakhs) to Banks in respect of guarantees given by the Banks to third parties for Purchase of Equipments, Supply of Goods, Clearance of Goods from Customs, Excise Bonds, etc.

c) Letters of Credit opened on behalf of the Company by Banks for purchase of materials and equipment amount to Rs. 22,506.53 Lakhs (Previous Year Rs. 25,904.60 Lakhs).

d) Bills of Exchange discounted under Bill Marketing Scheme amount to Rs. 3,174.72 Lakhs (Previous Year Rs. 2,653.07 Lakhs).

This information as required to be disclosed under the Micro, Small and Medium Enterprises Development Act, 2006 has been determined to the extent such parties have been identified on the basis of information available with the Company.

11. FINANCIAL AND DERIVATIVES INSTRUMENTS

a) Derivatives contracts entered into by the company and outstanding as on 31st March, 2015: i) Forward Contract is Rs. 1,864.86 Lakhs (Previous Year Rs. Nil Lakhs)

b) Foreign Currency Exposure that are not hedged by derivatives instruments as on 31st March, 2015 amounts to Rs. 7,323.28 Lakhs (Previous Year Rs. 1,388.88 Lakhs). The un-hedged exposures are naturally hedged by future foreign currency earning and earnings linked to foreign currency.

12. The company is required to spend an amount of Rs. 41.05 Lakhs during the year on CSR expenditure as per the Section 135 of the Companies Act, 2013 read with Schedule VII thereof and company has spent Rs. 60 Lakhs during the year by way of contribution to fund of Garware Charitable Trust.

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Mar 31, 2014

1. SHARE CAPITAL

Terms / Rights attached to Shares Equity Shares :

The company has only one class of equity shares having a par value of Rs. 10/- per share. Each equity shareholder is entitled to One Vote per share. The company declares and pays dividends in Indian rupees. The dividend proposed by the board of directors is subject to approval of Shareholders in the ensuing Annual General Meeting.

As per the companies Act, 1956 the holders of equity shares will be entitled to receive remaining assets of the company, after distribution of all preferential amounts in the event of Liquidation of the company. The distribution will be in proportion to the number of equity shares held by the shareholder.

Preference Shares :

The preference shares amounting to Rs. 4,954.00 Lakhs allotted on 07.11.2007 are redeemable in 3 equal installments from 1st April, 2014 to 1st April, 2016 and Rs. 492.00 Lakhs allotted on 19.06.2008 shall be redeemed in single installment on 1st April, 2016. These preference shares carry a fixed cumulative dividend of 0.01% per annum.

2. The company has revalued its Aurangabad and Nashik land in Previous Year at Rs. 21,803.73 Lakhs on the basis of certified valuers (M/s VGK Truman Consultancy Pvt. Ltd.) report dated 25/04/2013. This has resulted in land being further revalued by Rs. 18,755.94 Lakhs. The consequent appreciation in value has been credited to Revaluation Reserve.

Further in accordance with Accounting Standard (AS-28) issued by the Institute of Chartered Accountants of India, dealing with "Impairment of Assets", the company has been advised that there was impairment of certain Cash Generating Unit (CGU) by considering the market value and its potential capacity to generate cash flows in Previous Year. On the basis of the report given by a professional consultancy firm of valuers such impairment in value of CGU works out to Rs. 13,235.03 Lakhs. This has been adjusted against the balance in Revaluation Reserve in the Previous Year as provided in the scheme of Arrangement between Garware Chemicals Ltd. and the company under Section 391 to 394 of the Companies Act, 1956 as sanctioned by the Hon''ble High Court of Judicature at Bombay by its order dated 21st October, 2011.

3. The remuneration of Rs. 237.82 Lakhs paid to the Managing Director, Joint Managing directors and Director are subject to the sanction of the Central Government in respect of which applications have been made and are pending with Government. (Previous Year Rs. 767.68 Lakhs which was subject to sanction of Central Government has been duly approved).

B. Operating Leases

The company has taken various residential / commercial premises and vehicles on operating leases. These operating lease are in the nature of "cancellable lease" therefore disclosure as per Accounting Standard 19 is not required.

4. Legal and Professional Charges include Rs. 5.75 Lakhs (Previous Year Rs. 5.50 Lakhs) paid to some of the Partners of the Auditors for other services and Rs. 4.67 Lakhs paid to a firm in which one of Director is proprietor (Previous Year Rs. 3.57 Lakhs).

5. The Company has expensed out / Written off Sales Tax receivable of Rs. 1684.36 Lakhs in prior years pursuant to amendment of MVAT Act by the Government of Maharashtra with retrospective effect. However, as per legal opinion obtained by the company, this amendment was not applicable to CST. Accordingly, balance amount of Rs. 622.16 Lakhs out of Rs. 1178.30 Lakhs relating to CST which has been expensed out earlier, is now written back by the company. (Previous Year Rs. 556.14 Lakhs has been written back).

6. SEGMENT REPORTING :

a) The company is only in one line of business namely - Polyester Film

b) The Segment Revenue in the Geographical Segment considered for disclosure are as follows: i) Revenue within India includes sales to customers located within India.

ii) Revenue outside India includes sales to customers located outside India including Export benefits / Incentives.

7. RELATED PARTY DISCLOSURES

a) List of Related Parties

Subsidiary Garware Polyester International Limited

Step down Subsidiary Global Pet Films Inc.

Key Management Personnel

Shri. S. B. Garware

Mrs. S. S. Garware

Mrs. Monika Garware Modi

Mrs. Sarita Garware Ramsay

Ms. Sonia S. Garware

Enterprises over which Key Managerial Person are able to exercise significant influence

S. B. Garware Family Trust Garware Charitable Trust Garware Industriees Ltd. Great View Real Estates Pvt. Ltd.

(Associate Company Garware Chemicals Ltd. has been merged with Garware Industriees Ltd. with effect from 1/4/2013)

8. CAPITAL AND OTHER COMMITMENTS

Estimated amount of contracts remaining to be executed on capital account and not provided for Rs. 1,053.31 Lakhs (Previous Year Rs. 3,520.61 Lakhs) against which an advance of Rs. 99.01 Lakhs (Previous Year Rs. 1,640.05 Lakhs) has been paid.

9. CONTINGENT LIABILITIES -

a) Contingent Liabilities not provided for - As at As at

31.03.2014 31.03.2013

Rs. in Lakhs Rs. in Lakhs

Disputed matters in appeal / contested in respect of:

Income Tax 1,487.64 209.31

Excise Duty and Service Tax 477.16 208.48

Sales Tax 900.96 17.13

Local Body Tax 383.06 302.62

Maharashtra State Electricity Board (MSEB) 27.72 27.72

TOTAL 3,276.54 765.26

b) The Company has given counter-guarantees for Rs. 5,182.57 Lakhs (Previous Year Rs. 3,436.91 Lakhs) to Banks in respect of guarantees given by the Banks to third parties for purchase of equipment, supply of goods, clearance of goods from Customs, Excise Bonds, etc.

c) Letters of Credit opened on behalf of the Company by Banks for purchase of materials and equipment amount to Rs. 25,904.60 Lakhs (Previous Year Rs. 17,078.95 Lakhs).

10. The Previous Year''s figure have been re-grouped / reclassified to conform to this year''s classifcation.

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Mar 31, 2013

1. The company has revalued its Aurangabad and Nashik land at Rs. 21''803.73 Lakhs on the basis of certifed valuer''s (M/s VGK Truman Consultancy Pvt. Ltd.) report dated 25/04/2013. This has resulted in land being further revalued by Rs.18''755.94 lakhs. The consequent appreciation in value has been credited to Revaluation Reserve.

Further in accordance with Accounting Standard (AS-28) issued by the Institute of Chartered Accountants of India'' dealing with "Impairment of Assets"'' the company has been advised that there was impairment of certain Cash Generating Unit (CGU) by considering the market value and its potential capacity to generate cash fows. On the basis of the report given by a professional consultancy frm of valuers such impairment in value of CGU works out to Rs. 13''235.03 Lakhs. This has been adjusted against the balance in Revaluation Reserve as provided in the scheme of Arrangement between Garware Chemicals Ltd. and the company under section 391 to 394 of the Companies Act. 1956'' as sanctioned by the Hon''ble High Court of Judicature at Bombay by its order dated 21st October 2011.

2. The remuneration of Rs. 767.68 Lakhs paid to the Managing director'' Joint Managing directors and Director are subject to the sanction of the Central Government in respect of which applications have been made and are pending with Government. (Previous year Rs.666.64 Lakhs which was subject to sanction of Central Government has been duly approved.)

3. LEASES :

The company has entered in to fnance and operating lease agreements. As required under the Accounting Standard 19 on ''Leases'' '' the future minimum lease payments on account of each type of lease are as follows.

B. Operating Leases

The company has taken various residential /commercial premises and vehicles on operating leases.These operating lease are in the nature of "cancellable lease" therefore disclosure as per Accounting Standard 19 is not required.

4. Legal and Professional Charges include Rs. 5.50 Lakhs (Previous year Rs. 6.09 Lakhs) paid to some of the Partners of the Auditors for other services and Rs. Nil Lakhs for Amalgamation Expenses (Previous year Rs. 74.46 Lakhs).

5. The Company has expensed out / Written off Sales Tax receivable of Rs.1''684.36 Lakhs in prior years pursuant to amendment of MVAT Act by Government of Maharashtra with retrospective effect. However'' as per legal opinion obtained by the company'' this amendment was not applicable to CST. Accordingly'' part amount of Rs. 556.14 Lakhs relating to CST which has been expensed out earlier'' is now written back by the company.

6. SEGMENT REPORTING :

a) The company is only in one line of business namely - Polyester flm.

b) The Segment Revenue in the Geographical segment considered for disclosure are as follows:- i) Revenue within India includes sales to customers located within India.

ii) Revenue outside India includes sales to customers located outside India including Export Benefts / Incentives.

7. CAPITAL AND OTHER COMMITMENTS

Estimated amount of contracts remaining to be executed on capital account and not provided for Rs. 3''520.61 Lakhs (Previous year Rs. 5''169.49 Lakhs) against which an advance of Rs.1''640.05 Lakhs (Previous year Rs. 81.26 Lakhs) has been paid.

8. CONTINGENT LIABILITIES

As at As at

a) Contingent Liabilities not provided for - 31.03.2013 31.03.2012

Rs. in Lakhs Rs. in Lakhs Disputed matters in appeal / contested in respect of:

Income Tax 209.31 158.20

Excise Duty and Service Tax 208.48 43.94

Sales Tax 17.13 17.13

Local Body Tax 302.62 0.00

Maharashtra State Electricity Board (MSEB) 27.72 27.72

TOTAL 765.26 246.99

b) The Company has given counter-guarantees for Rs. 3''436.91 Lakhs (Previous year Rs. 906.52 Lakhs) to Banks in respect of guarantees given by the Banks to third parties for purchase of equipment'' supply of goods'' clearance of goods from Customs'' Excise Bonds'' etc.

c) Letters of Credit opened on behalf of the Company by Banks for purchase of materials and equipment amount to Rs. 17''078.95 Lakhs (Previous year Rs. 17''320.00 Lakhs).

d) Bills of Exchange discounted under Bill Marketing Scheme amount to Rs. 3''189.27 Lakhs (Previous year Rs. 2''334.90 Lakhs).

9. The previous year''s fgure have been re-grouped / reclassifed to conform to this year''s classifcation.

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Mar 31, 2012

1) Zero Coupon Bonds of Rs. Nil (previous year Rs. 63.00 Lakhs) were secured by charge on fixed assets of the company situated at Aurangabad and Nashik and also by way of second charge on current assets of the company. The company does not have power to reissue the said Zero coupon bonds.

2) Term Loans of Rs. 3,288.99 Lakhs (previous year Rs. 7,596.26 Lakhs) are secured as under:

a. Term Loan of Rs. 88.16 Lakhs (previous year Rs. 578.73 Lakhs) is secured by charge on the Specific project assets and also by way of second charge on current assets of the company. The loan is repayable in 24 quarterly installments from quarter ended June 2007 till March 2013.

b. Term Loan of Rs. 2,317.75 Lakhs (previous year Rs.1,196.89 Lakhs ) is secured by charge on the Specific project assets and also by way of second charge on current assets of the company. The loan is repayable in 20 quarterly installments from quarter ended March 2011 till December 2015.

c. Term Loan of Rs. 883.08 Lakhs (previous year Rs.Nil) is secured by charge on Fixed assets of the company situated at Aurangabad and Nasik and also by way of second charge on current assets of the company. The loan is repayable in 20 quarterly installments from quarter ended June 2012 till March 2017.

d. Term Loan of Rs. Nil (previous year Rs.5,383.50 Lakhs) was secured by charge on Fixed assets of the company situated at Aurangabad and Nasik also by way of second charge on current assets of the company.

e. Term Loan of Rs. Nil (previous year Rs. 437.14 Lakhs) was against the Fixed Deposits.

3) Vehicle Finances of Rs. 444.33 Lakhs (previous year Rs. 450.60 Lakhs) are secured by hypothecation of Specific assets. The loans are repayable in 60 monthly installments. the installment are payable from May 2007 till November 2016 covering all loans taken at various dates.

4) Deferral Loan from SICOM is payable from April 2016 to April 2026

5) The rate of interest on Foreign Currency loans ranges between LIBOR 7% to 7.5%, 14.25% on Rupee Loans and 8.92% to 15.5% on vehicle loans

a) Cash / packing Credit / Working Capital Demand Loans are secured by hypothecation of stores, spares and packing materials and stock- in-trade and book debts of the Company and further secured by a second charge on the movable assets of the Company and immovable properties situated at Aurangabad and Nasik.

b) Working Capital Loans are secured by hypothecation of stores, spares and packing materials and stock-in-trade of the Company.

c) Interest on working capital (Rupee) Loans ranges between 12.50% to 17% and Foreign currency loans 2.46% to 4.54%.

6. The remuneration of Rs. 616.22 Lakhs paid to the Managing director and Joint Managing directors are subject to the sanction of the Central Government in respect of which applications have been made and are pending with Government.

7. The significant leasing arrangements of the company are in respect of operating leases for premises and vehicles. these leasing arrangements range between 11 months and 5 years and are usually renewable by mutual consent on mutually agreeable terms. the agreeable lease rental payable are charged to profit and Loss account and shown under administrative, selling and general expenses in appropriate heads.

8. The break up of expenses capitalized and shown under Capital Work in progress (pending Allocation) as on 31.03.2012 is as under:

9. Legal and professional Charges include Rs. 6.09 Lakh (previous year Rs. 7.70 Lakh) paid to some of the partners of the Auditors for other services and Rs. 74.46 Lakhs for Amalgamation expenses (previous year Rs. 14.27 Lakhs).

10. Export Benefits / incentives are accounted on accrual basis. Accordingly, net estimated benefit aggregating to Rs. 1,273.82 Lakhs (previous year Rs. 1,345.41 Lakhs) against export effected during the year has been credited to export Benefits earned account which has been included in sales.

11. In accordance with Accounting Standard 28 (AS 28) issued by the institute of Chartered Accountants of India on impairment of Assets, the company had appointed professional consultancy firm as the Valuer's to assess impairment of each cash generating unit (CGu) by taking market value and its potential capacity to generate cash flows. According to the Valuer's report, there is no impairment to any of the assets as such no provision for impairment of assets is required to be made in the accounts.

12. SEGMENT REPORTING:

a) The company is only in one line of business namely - polyester film.

b) The Segment Revenue in the Geographical segment considered for disclosure are as follows:-

i) Revenue within India includes sales to customers located within India.

ii) Revenue outside India includes sales to customers located outside India including export Benefits / incentives.

13. CAPITAL AND OTHER COMMITMENTS

Estimated amount of contracts remaining to be executed on capital account and not provided for Rs. 5,169.49 Lakhs (previous year Rs.3,221.79 Lakhs) against which an advance of Rs. 81.26 Lakhs (previous year Rs. 310.55 Lakhs) has been paid.

14. CONTINGENT LIABILITIES -

a) Contingent Liabilities not provided for - As at As at 31 March 2012 31 March 2011 Rs. in Lakhs Rs. in Lakhs

Disputed matters in appeal / contested in respect of:

Income tax 158.20 83.16

Excise Duty 43.94 43.94

Sales tax 17.13 17.13

Maharashtra State electricity Board (MSEB) 27.72 27.72

TOTAL 246.99 171.95

b) The Company has given counter-guarantees for Rs. 906.52 Lakhs (previous year Rs. 887.91 Lakhs) to Banks in respect of guarantees given by the Banks to third parties for purchase of equipment, supply of goods, clearance of goods from Customs, excise Bonds, etc.

c) Letters of Credit opened on behalf of the Company by Banks for purchase of materials and equipment amount to Rs. 17,320.00 Lakhs (previous year Rs. 9,314.21 Lakhs).

d) Bills of exchange discounted under Bill Marketing Scheme amount to Rs. 2,334.90 Lakhs (previous year Rs. 1,851.66 Lakhs).

15. DEFERRAL / CAPITALIZATION OF EXCHANGE DIFFERENCES

In accordance with the amendment / earlier amendment to AS 11, the company has capitalized exchange loss, arising on long-term foreign currency loan / Creditors, amounting to Rs. 409.46 Lakhs (previous year Rs. 19.27 Lakhs) to the cost of plant and equipments.

16. The previous year's figure have been re-grouped / reclassified to conform to this year's classification which is as per Revised Schedule Vi. this adoption does not impact recognition and measurement principles followed for preparation of financial statement as at 31st March 2011.

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Mar 31, 2010

1. Estimated amount of contracts remaining to be executed on capital account and not provided for Rs. 943.18 Lakhs (Previous year Rs.858.50 Lakhs) against which an advance of Rs. 16.70 Lakhs (Previous year Rs. Nil) has been paid.

2. The Company has given counter-guarantees for Rs. 723.56 Lakhs (Previous year Rs.738.59 Lakhs) to Banks in respect of guarantees given by the Banks to third parties for purchase of equipments, supply of goods, clearance of goods from Customs, Excise Bonds, etc.

3. Letters of Credit opened on behalf of the Company by Banks for purchase of materials and equipments amount to Rs. 15,538.11 Lakhs (Previous year Rs.13,577.63 Lakhs).

4. Bills of Exchange discounted under Bill Marketing Scheme amount to Rs. 2,257.75 Lakhs (Previous year Rs. 2,725.29 Lakhs).

5. Secured Loans:

Zero Coupon Bonds of Rs. 151.00 Lakhs are repayable in quarterly installments with premium of Rs.128.35 Lakhs till 1st January, 2012.

Amount of Term Loans / Zero Coupon Bond repayable within one year is Rs.6,716.45 Lakhs (Previous Year Rs.1,947.60 Lakhs).

6. Contingent Liabilities not provided for -

(Rs. in Lakhs)

As at As at

31-03-2010 30-09-2009

Disputed matters in

appeal / contested in respect of:

Income Tax 63.91 43.22

Excise Duty 43.94 39.02

Sales Tax 17.13 17.13

Maharashtra State Electricity

Board (MSEB) 27.72 0.00

7. Legal and Professional Charges include Rs. 0.83 Lakh (Previous year Rs.7.90 Lakhs) paid to some of the Partners of the Auditors for other services & Rs. Nil paid to a firm in which one of the Director is a partner. (Previous year Rs. 0.25 Lakh).

8. Export Benefits / Incentives are accounted on accrual basis. Accordingly, net estimated benefit aggregating to Rs. 510.21 Lakhs (Previous year Rs.752.27 Lakhs) against export effected during the period has been credited to Export Benefits earned account which has been included in sales.

Note:

(i) The remuneration of Rs. 377.96 Lakhs for Previous year paid to the Managing Director and Joint Managing Director are as per Central Government sanctions.

(ii) The above figure does not include provision for gratuities as separate actuarial valuation is not available.

9. Deferred Tax:

As per the legal advice obtained by the Company and in compliance with provisions of Accounting Standard and based on General Prudence, the Company has not recognized the deferred tax asset / liability while preparing the accounts of the year under review (Previous Year provision of Rs. 1,193.75 lakhs as deferred tax liability).

10. Related Party Disclosures

a) List of Related Parties.

Subsidiary Garware Polyester International Limited

Ultimate Subsidiary Global Pet Films Inc

Associate Companies Garware Industries Limited & Garware Chemicals Limited

Key Management Personnel (1) Shri. S. B.Garware

(2) Mrs. Monika Garware Modi

(3) Ms. Sarita Garware

(4) Miss. Sonia S.Garware

Enterprises over which Key Garware Charitable Trust

Managerial Person are able to exercise significant influence

11. Deferred Tax:

As per the legal advice obtained by the Company and in compliance with provisions of Accounting Standard and based on General Prudence, the Company has not recognized the deferred tax asset / liability while preparing the accounts of the year under review(Previous Year provision of Rs. 1,193.75 lakhs as deferred tax liability). SCHEDULE – 12 (Cond.)Compiled by : Religare Technova Global Solutions Limited

12. In accordance with Accounting Standard 28 (AS 28) issued by the Institute of Chartered Accountants of India on Impairment of Assets, the Company had appointed professional consultancy firm as the valuers to assess impairment of each cash generating unit (CGU) by taking market value and its potential capacity to generate cash flows. According to the valuers report, there is no impairment to any of the assets as such no provision for impairment of assets is required to be made in the accounts.

13. The signifcant leasing arrangements of the Company are in respect of operating leases for premises and vehicles. These leasing arrangements ranges between 11 months and 5 years and are usually renewable by mutual consent on mutually agreeable terms. The agreeable lease rental payable are charged to Profit and Loss account and shown under administrative, selling and general expenses in appropriate heads.

14. Additional information pursuant to the provisions of paragraphs 3 and 4C of part II of Schedule VI of the Companies Act, 1956.

15. Previous yearss figures have been rearranged and regrouped wherever necessary to conform to the classification adopted for the current period. Figures of the current period are not comparable with the figures of the previous year being of six month period.