Accounting Policies of HCP Plastene Bulkpack Ltd. Company

Mar 31, 2025

1 Corporate Information

HCP Pl3stene Bulkpack Limited (the''Company'') is a public listed comD3ny domiciled in India Its Equity Shares 3re listed on Bombay
Stock Exchange (‘BSE’). The Company is 3 diversified business dealing in FIBC Jumbo Bags. PP Woven Sack 3ags, PP Woven Laoels and
related products

2 Summay of Basis of Compaliance, basis of preparation and presentation, critical accounting estimates, assumptions and
judgements and Material accounting policies:

2.1 Basis of Compliance :

The Standalone financial statements comly in all material aspects, with Indian Accounting Standards (Ind AS) notified under section 133 of
Companies Act 2013 (''the Act'') read witn the Companies (Indian Accounting Standards) Rule, 20IS.

2.2 Basis for Preparation of Accounts:

The Stand - aione Financial Statements nave near, prepared on the historical cost b3sisexceot for certain financial instrumentsand defined
benefit plans which are measured at fair values at the end of each resorting period, as explained in the accounting policies below which are
consistently followed except where a new accounting standard or amendment to the existing accounting standards requires a change in tne
policy hitherto applied. Presentacon requirements of Division II of Schedule III to the Companies Act. 2013, as applicable to the Standalone
Financial Statements h3v= been followed

All assets and liabilities have been dasified as current or non-current 3S per the Company''s normal operating cycle and other criteria set out
in the Schedule II to the Act

2.3 Summary of Material Accounting Policies:

Tne following are the significant accounting policies applied by the Company in preparing its financial statements consistently to si! the
periods presented,
i Going concern assumption

The company has achieved 3 turnover of Rs 11,803.53 Laths dunng the fiscal year 2021-2025 (from April 1, 2021. to March 31. 2025), and
the financial statements have Peen prepared assuming that the company wiil continue its operations as a going concern
fi Current verses non-current classification

Tne Company presents assets and liabilities in the Balance 5heet based on current/non-current classification.

An asset is current when it is:

Expected to be realised or intends to be sold or consumed in tne normal -operating cyde,

• Help primarily for the purpose of trading;

Expected to be realised within twelve months after the reporting period; or

Cash and cash equivalent unless restricted from being exchanged or used to sett-e a liaoil''ity for at least twelve months
after the reporting period.

Ali -other assets are classified as non-current.

A liability is current when:

It is expected to oe settled in the normal operating cyde;

It is held primarily for the purpose of trading;

It is due to be settled within twelve months after the reporting period; or

There is no unconditional right to defer the settlement of tne liability for at least twelve months after the reoorting period.

Tne Company classifies all other liabilities as non-current.

However as CIRP process n3s been initiated all liabilities towards Banking Facilities have Deen
convened in to Current Demands and hance shown under Current Liabilities.

Operating cycle

Operating cycle of the Company is the time between the acquisition of assets f or processing 3nd their realization in cash or cash equivalents
As the Company"s normal operating cycle Is not dearly identifiable, it is assumed to ee tweVe months.

fii Use of estimates and judgements

The estimates and judgments used in the oreoaration of the financial statements 3re continuously evaluated by the Company and are based
on historical experience 3nd various other assumption and factors (including expectations of future events) that the Company believes to be
reasonable under the existing circumstances. Difference oetsveen actual results estimates are recognized in tne period in which the result is
known/matenalizeO

The said estimates are based on tne facts and events. tn3t existed as at reporting d3te. or that occurred after that date but provide additional
evidence about conditions existing as at the reporting date.

iv Financial instruments

A financial instrument is a contract that gives rise to a financial 3sset of one entity end a financial liability or equity instrument of anotne-
entity

A Financial asset

(i) Classification and measurementClassification
Classification

The Company classifies its financial assets, other than Investments in subsidiaries and joint venture in the following measurement categories,
a. those to be measured subsequently at fair valuefeither through other comprehensive income, or through profit or loss), and
b those measured at amortised cost

The classification depends on the Company''s business model for managing the financial assets 3nd tne contractual terms of the cash flows.
For assets measured 3t fairvalue, gains and losses will either be recorded in profit or loss or other comprehensive income. For investments
in debt instruments, this will depend on the business model in which the investment is held. For investments in equity instruments, this will
depend or whether the Company has made an irrevocable election 3t tne time of initial recognition to account for the equity investment 3t
fair value through other comprehensive income.

The Company reclassifies debt investments when and only when its business model for managing tnose assets cnangas.

Measurement

At initial recognition all financial assets are measured initially at fair value plus. In the C3=e of financial assets not recorded at f3ir value
through profit or loss, transaction costs that are attributable to the acquisition of the financial asset. Transaction costs of financial assets
carried at fair value through profit or loss are expensed in profit or loss. Purchase or saies of financial assets that require delivery of assets
within a time frame established by regulation or convention in the market place | regular way trade | are recognised on trade date
Debit Instrument

Subsequent measurement of debt instruments depends on the Company''s Business model for managing the asset and the cash fiow
characteristics of the asset. There is only one measurement category into which the Company classifies its debt instruments as follows:
Amortised cost. Assets that are held for collection of contractual cash flows whe*e those cash flows represent solely payments of principal
and interest are measured at amortised cost. A gain or loss on a debt investment that is subsequently measured at amortised cost and is
not part of a hedging relationship is recognised in profit or loss when the asset is derecognised or impaired interest income from tnese
financial assets is included in finance income using the effective interest rate method
Trade Receivable

Trade receivables are recognised initially at fair value and subsequently measured at amortised cost using the effective interest method, less
provision for impairment.

Cash and Cash equivalents

For the purpose of presentation in tne statement of C3sh flows cash and casn equivalents includes cash on hand, deposits held at call with
financial institutions, other short-term, highly liquid investments with original maturities of three months or less that 3re readily convertible
to known amounts of cash and which are subject to an insignificant risk of changes in -value, and bank overdrafts which are repayable on
demand and form ar integral Dart of 3>n entity''s -cash management system
Other bank overdrafts 3re shown within borrowings in current liaDilities in the balance sheet.

(ii) Impairment of financial assets

The Company assesses on 3 forward looking basis the expected credit losses associated with its assets carried at amortised cost The
impairment methodology applied depends on whether there has been a significant increase in credit risk. Note 38.2 details how the Company
determines whether there has been a significant increase in credit nsk. For trade receivables only, the Company applies the simplified
approach permitted by Ind AS 109 Financial Instruments, which requires expected lifetime losses to be recognised from initial recognition of
the receivaoies

(iii) Derecognition of financial assets

A financial asset (or, where applicable, a p3rt of a financial asset or part of 3 group of simitar financial assets) is primarily derecognised when-

• The rights to receive cash flows from the financial 3=ser have been transferred, or

• The Company retains the contractual rights to receive the cash flows of the fir-arvtial 3sset but assumes a contractual obligation to pay the
cashflows to one or more recipients.

When the Company has transferred an asset, financial asset In such cases, the financial 3ssst is derecognised. When the Company has not transferred substantially ail the risks and
rewards of ownership of a financial asset, the financial asset ^:s not derecognised.

When the Company has neither transferred a financial asset nor retains substantially 3l! risks and rewards of ownership of the financial asset,
the financial 3=set is derecognised if the Company has not retained control of the financial asset. When the Company retains control of the
financial asset, the asset is continued to be recognised to the extent of continuing involvement of the asset.

(iv) Income recognition

Interest income from debt instruments is recognised using the effective interest rate method. The effective interest rate is the rate that
exactly discounts est imated future cash receipts through the expected life of the financial asset to the gross carrying amount of a financial
asset. When calculating tne effective interest rate, the Company estimates tne expected cash flows by considering all the contractual terms
of the financial instrument (for example prepayment, extension, call and similar optionsjbut does not consider tne expected credit losses-
Dividends 3re recognised in profit or loss only when the right to receive payment is established, it is prooabie that the economic benefits
associated with the dividend wiil flow to the Company, and the amount of the dividend can be measured reliably

B Financial liabilities

(») Initial recognition and measurement:

Financial liabilities are classified. 3t initial recognition, as financial liabilities at fair value through statement of Profit and loss, loans 3nd
borrowing, payables, or as derivatives designated as hedging instruments in an effective hedge, as appropriate.

Ali financial liabilities are recognised initially at fair value and, in the case of loans and borrowings and payables, net of directiy attributable
transaction costs.

Tne company''s financial liabilities include trade and other payables, loans and borrowings including cash credit facilities from banks and
derivative financial instruments.

(fi) Subseouent measurement:

The measurement of financial ItabHlOes depends on their classification, as described below:

Financial liabilities a: fair value through Statement of Profit ar.o loss.Financial HafcfllOes at fair value through profit and loss include financial
liabilities held for trading and financial liabilities designated upon Initial recognition at fair value through Profit and loss. Financial ''labilities
are classified as held for trading if they are incurred for the purpose of ''epurchasir.g in the near term TW= category also includes derivatives
financial instruments entered into by the company that are not designated as hedging instruments In hedge relationships as defined by
Ind AS 109.

Gains or losses on liabilities held for trading are recognized in the Statement of Profit and loss

Financial liabilities designated upon initial recognition at fair value through statement of profit and loss are designated as such at the initial
date cf recognition and only if the criteria in Ind AS 109 are satisfied. For liabilities designated as FVTPL, fair value gams/losses attributable
to changes in own credit risks are recognized in OO. These gains/losses are not subsequently transferred to p&L However the company
may transfer tne cumulative gain or loss within equity- Affother changes in fairvstue of such liability are recognized in the statement of
profit 3nd loss.

loans and borrowings:

After initial recognition, interest-bearing loans and borrowings are subsequently measured at amortised cost using the EIR method Gains
and losses are recognized in the statement of profit and loss when the liabilities are derecognised as well as through the EIR amortisation
process.

Amortised cost is calculated by taking into account any discount or premium on acquisition and fees or costs that 3re an integral part of
the EIR The EIR amortisation is included as finance costs in the statement of profit and loss
This category generally applies to borrowings

Financial guarantee contracts:

Financial guarantee contracts issued by the company are those contracts that require a payment to be made to reimburse the holder for
a oss it incurs because the specified deotor fails to make a payment when due in accordance with the terms of a debt instrument
Financial guarantee contracts are recognized initially as a liability at f3ir value through statement of profit 3rd loss IFVTPl), adjusted for
transaction costs that a.-s directly attributable to the issuance of the guarantee. Subsequently, the liability is measured at the higher of
the amount of loss allowance determined as per impairment requirements of ind AS 109 and the amount recognized less cumulative
amortisation.

(iiij Derecognition:

A financial liability is derecognised when the obligation under the liability is discharged or cancelled or expires. When an existing financial
liability Is replaced by another from the same lender on substantially different terms, or the terms of an existing liability are substantially
modified . such an exchange or modification is treated as the derecognition of the original liability and tne recognition of a new liability.

The difference in the respective carrying amounts is recognized in the statement of Profit and loss.

C Derivative financial instrument:

The Company uses derivative financial instruments, such as forward currency contracts, to hedge its foreign currency risics Such derivative
financial instrument is initially recognized at fair value through consolidated statement of Profit and loss (FVTPL) on the date on which 3
derivative contract is entered into and is subsequently re-measured at fair value. Derivatives 3re carried as financial assets when the fair
value is positive and as financial liabilities when the fair value is negative.

Any gains or losses arising from charges in the fair value of derivative financial instrument are classified in the consolidated statement
of Profit and loss and reported with foreign exchange gains/(loss) not within results from operating activities. Changes in fair value and
gains /(losses) on settlement of foreign currency derivative financial instruments relating to borrowings, which h3ve not been designed
as hedge are recorded as finance cost

0 Offsetting of financial instruments

Financial assets and financial iiaoiiities are offset and the net amount is reported in the balance sheet if there is a currently enforceable
legal right tG offset the recognized amounts and there s an intention to settle on a net basis, to relate the assets and settle the liabilities
simultaneously.

a Foreign Currency Transactions.

The Company''s financial statements are presented in INR, which is also the Company''s functional and presentation currency.

Transactions m Foreign currency are recorded at the rate of exchange in force at the time transactions are effected and exchange
difference, if any. on settlement of transaction is recognized in Profit & Loss Account Monetary transactionbalance other than FCDL as
on date of Balance Sheet have neen reported at exchange :3te on Balance 5heet d3te and difference charged to profit S oss account.
Forward contract premium paid on forward contracts are amortized to Profit & loss account over life of such contract.
b Fair value measurement

The Company measures financial instruments such 3S Investments at f3ir value 3t the end of each reporting period
Fair value is the price that would be received to sell an asset or paid to transfer a iiaoility m an orderly transaction between market
participants at the measurement date. Tne fair value measurement is based on the presumption that the transaction to sell the asset or
transfer the liability skes place either.

• In the principal maricet for the asset or liability Or

• In the absence of a principal market, in the most advantageousmarket for the asset or Iiaoility.

The princ.pal or the most advantageous maricet must be accessible by the Company.

Tne fair value of an asset or s liability is measured using theassumptions that market participants would use when pricing theasset or
liability, assuming that market participants act in theiraconomic best merest

A f3ir value measurement of a norv-finanti3l asset takes into account market participant''s ability to generate economic benefits by using
the asset in its highest and best use or by selling it to another m3ncet participant that would use the 3sser in its highest and best use.

Tne Company uses valuation techniques that are appropriate >n the circumstances and for which sufficient data are available to
measurefa r value maximising the use of relevant observabieinputsandminimisingthe use of unobservable inputs.

All assets and liabilities for which fair value is measured or disclosed in the financial statements are categorised within the fair value
hierarchy, descnoed 3S follows, based on the lowest level input that issignificant to the fair value measurement 33 a whole:

• Level 1 — Quoted (unadjusted) market prices in active markets for identical assets or liabilities.

• Level 2 — Valuation techniques for which the lowest level input that is significant to the fair value measurement is directly or indirectly

observ3Dle

• Levei 3 — Valuation techniques for which the lowest level input that is significant to the fair value measurement is unopservaole

For assets and liabilities that are recognised in the financial statements on 3 recurring basis, the Company determines whether transfers
have occurred between levels in the hierarchy by ''eassessing categorisation (based on the lowest ievei input that issignificant to the fair
value measurement as a whole) 3t the end of each reporting period.

The Company''s Management determines the policies and procedures for botn recurring fair value measurement, such 3= derivative
instruments and for non-recurring measurement, such, as asset held for saie.

Extemal valuers are involved for valuation of significant assets. such as properties. Involvement of external valuers is decided upon
annually by the management after discussion with and approval by the Company''s Audit Committee. Selection criteria include market
knowledge, reputation, independence and whether professional standards are maintained. Management decrdes. after discussions with
the Company''s external valuers, which valuation techniques and inputs to use for each C3se.

However, such fair value report is not available for all assets except equity investment as or 31st March. 2020, Hence impairment Loss
not booked for immovable properties

At each reporting date, management analyses the movements in the values of assets and liabilities which are required to be re-measured
or re-assessed 3= per the Company''s accounting policies. For this analyse, The Management verifies the major inputs applied in tne latest
valuation by agreeing the information in the valuation camoutation to contracts and other relevant documents

The Management ^;n conjunction with the Company''s external valuers ,3=50 compares the change inthe fair value of each asset and
liability with relevant external sources to determine whether the change treasonable on yeariy basis.

For the purpose of f3ir value disclosures the Company h3S determined classes of assets 3od liabilities on the basis of the nature,
characteristics and risks of the asset or liability and the level of the fair value hierarchy, as explal ned above This note summarises
accounting oolicy for fair value. Other fair value related disclosures are given in the relevant notes.

• Significant accounting judgements, estimates and assumptions

• Quantitative disclosures of fair value measurement hierarchy

• Property, plant and equipment St Intangible assets measured atfairv3lue 00 the date of transition

• Investment properties

• Financial instruments (includingthose carried at amortised cost)

Property, plant and equipment

Property, plant and equipment are stated at cost, less accumulated deprecation and impairment, if any. Costs directly attributable to
acquisition are capitalized until the property. plant and equipment are ready for use. 3s intended by the Management. The charge in
respect of periodic depreciation is derived at after determining 3n estimate of an asset’s expected useful life and the expected residua''
value at the end of its iife.

The Company depreciates property, plant and equipment over their estimated useful lives using the straight-Une method.

Schedule II to tne Act prescribes the useful lives for various class of assets For certain class of assets, Dased on technical evaluation 3nd
assessment. Management believes that the useful lives adopted by it reflect the periods over which these assets are expected to as used
Accordingly for those assets, the useful lives estimated oy the management are different from those prescribed In the Schedule.
Management''s estimates of the useful iives for various class of PPE are as given below:_

Derecognition

An item of property, plant and equipment is derecognised upon disposal or when no future economic oenefits are expected from its use
or disposal. Any gain or loss arising on derecognition of the asset (calculated as the difference between the net disposal proceeds and the
carrying amount of the asset; is included in the Statement of Profit and Loss when the asset is derecognised. However 3S stated aoove
No impairment ioss is oooked on 3ist March, 2024.

Depreciation

Depreciation on property, plant and equipment is provided so as to write off the cost of assets less residua! values over tneirussfu lives
•of the assets, using the straight line method as prescribed under PartC of Schedule ll to the Companies Act 2013.

When parts of an item of property, plant and equipment have different useful life, they are accounted for as separate items (Major
Components) and are depreciated over tneir useful life or over the remaining useful life of the principal assets whichever is less.

Depreciation for assets purcnased/sold during a period isproponjonateiy charged for the period of use. irrespective of actual operation
and uses of the assets n question.

d Intangible Assets

Intangible assets acquired separately are measured or initial recognition at cost. Following initial recognition, intangible assets are
carried at cost less accumulated amortization and accumulated impairment losses, if any.

The useful lives of intangible assets are assessed as either finite oondefimte.

Intangfble assets with finite lives are amortized over their useful economic lives and assessed for impairment whenever there is an
indication that the intangiple asset may be impaired. The amortization period 3nd the amortization method for an intangible 3sset with
a finite useful life are reviewed at least at the end of each reoorting period Changes In the expected useful life or the expectedoartem
of consumption of future economic benefits embodied inthe assets are considered tG modify the amortization period or method, as
appropriate and 3re treated as changes in accounting animates The amortization expense on intangible assets with finite nves is
recognised in the Statement of Profit and _oss intangible assets with indefinite useful lives are not amortized, but are tested fc-r
impairment annually, either individually or at the cash generating unit level. The assessment of indefinite fife is reviewed annually to
determine whether the indefinite fife continues to be supportable, rf not. the change in useful life from indefinite to finite is made on
a prospective basis.

Gains or losses arising from derecognition of an intangible asset are measured as the difference between the net disposal proceeds and
the carrying amount of tne asset and are recognised in tne Statementof Profit and Loss when the asset is derecognised

Amortisation

Software is amortized over management estimate of its useful life of 3 years.

Impairment of non-frnanciai assets

The Company assesses at each reporting date whether there is an indication that an asset may ba Impaired, if any indication exists,
the Company estimates the asset''s recoverable amount. An asset''s recoverable amount is the higher of an asset''s or cash generating
unit''s (CGU) net selling price and its value in use. The recoverable amount is determined for an individual asset, unless the 3sset does not
generate C3sh Inflows that are largely independent of those from other assets or groups of assets. Where the carrying amount of an
asset or CGU exceeds its recoverable amount, the asset is considered impaired and is to its recc-verabfe amount.

In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that
refects current market assessments of the time value of money and the risks specific to the asset. In determining net selling price,
recent market transactions are taken into account if available It no such transactions car be identified. an appropriate valuation
model is used.

e Inventories

Inventories of Raw material, Work-in - progress , finished goods and Stock-in-trade are valued at the lower of cost and net realizable
value However Raw materia-'' 3nd other items held for use in the production of inventories are not written down below cost if the
finished products in which they will be incorporated are expected to be sold at oraoove cost

Costs incurred in bringing each product to its present location andconditions are accounted for as follows:

•Raw materials, cost includes cost of purchase and other costs incurred in bnnging the inventories to their present location and
condition Cost is determined on first in. first out basis.

• Finished goods and work in progress: cost includes cost of direct materials 3nd Labours and a proportion of manufacturing overheads
based or the normal operating capacity, but exctuding borrowing costs. Cost is determined on first in, first out basis

• Traded goods: cost includes cost of purchase and other costs incurred in bringing the inventories to their present location and condition.
Cost is determined on weighted average basis.

All other inventories of stores, consumables. projecT material at site are values at cost or NRV whichever is (ow Tne stock of waste is
valued at net realisable value

Net realisable value is the estimated selling price in tha ordinary course of ousiness, less estimated costs of completion and the estimated
costs necessary to make the sale.

/ Revenue Recognition
f (a) Sale of Goods

* Revenue is racogn sed upon transfer of control of promised goods to customers in an amount that reflects the consideration which the
Company expects to receive in exchange for those goods.

* Revenue from the sale of goods is recognised at the point in time when control is transferred to the customer which is usually on
dispatch / delivery of goods based on contracts with the customers.

• Revenue towards satisfaction of performance obligation is measured basad or. the transaction price which is the consideration
adjusted for volume discounts, price concessions, incentives, and returns, if any, as specified in the contracts with the customers

* Revenue excludes taxes collected from customers on nehaif of the government Accruals for discounts/incentives and returns are
estimated (using the most likely method) cased on accumulated expenenceand underlying schemes and agreements withcustcmers.
Due to the short nature of creditperiod given to customers, there is no finandngcomponent in the contract.

The Company does not expect to have any contracts where the period between tne transfer of the promised goods or services to the
customer and payment by the customer exceeds one ye3r As a consequence, it does not adjust any of the transaction prices for the
time value of money

Revenue from tne sale of goods is measured at the fair value of the consideration received or -eceivable including net of returns and
allowances, tradediscou.nts, volume rebates and GST.

f (b) Interest income

Interest is recognized on a time proportion oasis taking into account the amount outstanding 3nd the appitcab’e interest rate
f (c) Dividend

Dividend Income is recognised when the Company"s right to receive established which is generally occur when the shareholders aporove
the dividend.

g Taxes on Income

Tax expense comprises of current income tax and deferred tax.

Current income tax

Current income tax assets and liabilities are measured at Pie amount expected to be recovered from or paid to the taxation authorities.
The tax rates and tax laws used to compute the amount are those tti3t are enacted or substantively enacted, at the reporting date.

Current •rvcometax relating to items recognised outside the statement of Profit and Loss is recognised outside the statement of Profit
and Loss (either in other comprehensive income or in equity). Deferred tax items 3re recognised in correlation to the underlying
transaction either in 0C- or directly in equity.

Management periodically evaluates positions taken in the tax returns with respect to situations in which applicable tax regulations are
subject to interpretation and establishes provision where appropriate.

Deffered IncomeTax

Deferred income tax is provided using the liability method on temporary differences arising between the tax oases of assets and liabilities
and their carrying amounts for financial reporting purpose at the reporting date
Deferred tax liabilities are recognized for ail taxable temporary differences, except

-When the Deferred tax liability arises from tne initial recognition of goodwill or 3n 3sset or liability in a transaction other than a
business combination th3t at the time of the transaction affects neither accounting profit nor taxable profit or loss.

- In respect of taxaole temporary differences associated with investments in subsidiaries, when tne timing of tne reversal of the
temporary differences can be controlled and it is proP3ble that the differences will not reverse in the foreseeable future

Deferred tax assets are recognized for all deductible temporary differences, the carry forward of unused tax credits and any unused tax
losses. Deferred tax assets are recognized to the extent it is probable that future taxable amounts will be available against the deductible
temporary differences and the carry forward of unused tax credits and unused tax losses can be utilised except:

- When the Deferred TAX ASSET arises relating to the deductible temporary difference arises from tne initial recognition of an ASSET or
LIABILITIES in a transaction other than a business combination that 3t tna time of the transaction affects neither accounting PRO?IT nor

TAXABLE PROFIT or LOSS.

- in respect of deductible temporary differences associated with investments in subsidiaries, associates and interests in joint
arrangements deferred tax assets are recognised only to the extent that it is probable that the temporary differences will reverse in the
foreseeable future 3nd taxable profit will be available against which the temporary differences can be utilised

The carrying amount of deferred tax assets is reviewed at each reporting d3te and reduced to the extent that it is no longer probable
that sufficient taxable profit will be available to allow 3ll or pan of the deferred t3X assets is to be utilised Unrecognized deferred tax
assets are re-assessed 3t each reporting date and are recognised to the extent that ithas oecome prcbaoie that future taxable profits
will allow the deferred tax asset to be recovered

Deferred tax assets and liabilities are measured at the tax rates that are expected to apply In the year when the asset is realised or the
liability is settled. based on tax rates (and tax laws) that have been enacted or substantively enacted at the reporting date

Deferred tax relating to items recognised outside the statement of Profit and Loss is recognised outside the statement df Profit and Loss.
Deferred tax items are recognised in correlation to the underlying transaction either in other comprehensive income or directly in equity

Deferred tax assets and deferred tax liabilities 3re offset if a legally enforceable right exists to set off current tax assets against current
t3x liabilities and the deferred taxes relate to the same taxaole entity and the same taxation authority

h Employee benefits
Short-term obligations

Labilities for wages and salaries, including non-mor.etary benefits that are expected to be settled wholly within 12months 3fter the end
of the period in which the employees render the related service are recognized in respect of employees services up to the end of the
reporting period and are measured at the amounts expected to be P3id when the liabilities are settled The liabilities 3re presented as
current employee oeneft obligations in the balance sheet

Other long-term employee benefit obligations

The liabilities for earned leave and sick leave 3re not expected to oe settled wholly within 12 months 3fter the end of the period in which
the employees render the related service. They are therefore measured 3S 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 on government bonds using the projected unit credit
method The oenefits are discounted using the market yields 3t the end of the repaying period that have terms approximating to the
terms of the related obligation Remeasurements as a result of experience adjustments 3nd changes n actuarial assumptions are
recognised in profit or loss.

The obligations ere presented as current liabilities in the balance sheet if the Company does not have an unconditional right to defer
settlement for at least twelve months after the reporting period, regardless of when the actual settlement is expected to occur.

Post-employment obligations

The Company operates the following post-employment schemes

a) defined Benefit plans such as gratuity 3nd

b) defined contribution plans such as provident fund

Defined benefit plan

The liability or asset recognised in tne oaiar-ce sheet in respect of defined Benefit gratuity pians is tne present value of the defined benefit
obligation at the end of the reporting period less the f3ir value of pian assets The defined Denefir obligation is calculated annually by
actuaries using the projected unit credit method

The present value of the defined benefit obligation b determined by discounting the estimated future cashout flows by reference to
market yields at the end of the reporting period on government bonds th3t have terms approximating to the terms of the related
obligation. The net interest cost is calculated by applying the discount r3te to the net balance of the defined benefit obligation and the
fair value of pl3n assets. This cost is included in employee benefit expanse in the statement of profit and loss

Remeasurement gains and losses arising from experience adjustments 3nd changes in actuarial assumpoonsare 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.

Changes in the present value of the defined benefit oolig3t>on resulting from olan amendments or curtailments are recognised
immediately in profit or loss as past service cost

Defined contribution plans

The Company pays provident fund contributions to publicly administered provident funds 3S per local regulations. The Company has no
further payment obligations once the contributions nave been paid The contributions are accounted for as defined contribution plans
and the contributions are recognised as employee benefit expense when they are due Preoaid contributions are recognised as an asset
to the extent that a cash refund or a reduction in the future payments is available.

i Export incentives

Export incentives under various schemes notified by government are accounted for, in the year of exports based on eligibility and
whenthere is no uncertainty in receiving the same

/ Investment and other Finoncfol Assets

Financial assets are recognized and measured in accordance with Ind AS 109- Financial Instruments. Accordingly, the company recognizes
financial asset only when it has contractual right to receive cash or other financial assets from another Company.

a. Initial recognition and measurement

All financial assets, except investment in subsidiary are measured initially at fair value plus, transaction costs that are attributable to the
acquisition of tne financial asset. Tne transaction cost incurred for the purchase of financial assets held at fair value through profit or
loss is expended in the statement of Profit and Loss immediately

b. Subsequent measurement

For tne purpose of Subsequent measurement finar.03! 3ssets are classified in three categories:

- Measured 3t amortised cost

- Measured 3t fair value through other comprehensive income (FVOG)

- Measured at fair value through Profit and Loss (FVTPL)

k Debt instruments at omortised cost

Assets that are held for collection of contractual C3=h flows where those cash flows represent solely payments of principal and interest
are measured at amortised cost. Financial assets are accounted for 3t amortized cost using the effective interest method. This category
comprises trade accounts receivable. So3r.s. cash 3rd cash equivalents. ban*. balances and other financial assets. A gain or loss on 3 debt
instrument that is subsequently measured at amortized cost and is not part of a hedging relationship that is recognized in the Statement
of Profit and Loss when the asset is derecognized or impaired. Interest income from these financial assets is included in finance income
using the effective interest rate method

Debt instruments 3t fair value through other comprehensive income (FVOCI)

Assets that are held for collection of contractual cash flows and for selling the financial assets, where the assets'' cash flows represent
solely payments of principal and interest, are measured at fair value through Other Comprehensive Income (FVOCJ).

The movement in carrying amount are taken througn Other Comprenensive Income, except for tne recognition of impairment gains or
losses, interest revenue and foreign exchange gains and losses -which are recognized n the Statement of Profit and Loss. When the
financial 3sset is derecognized , the cumulative gain or loss previously recognized in Other Comprehensive Income is reclassified from
equity to tne Statement of Profit and Loss and recognized in other gains/ (losses), interest income from these financial assets is included
in finance income using the effective interest rate method.

Debt instruments at fair value through Profit and Loss (FVTPl)

FVTPL is a residua; category for deot instruments Any debt instrument, which does not meet the criteria for categorisation at amorriied
cost or FVTOCI. is classified as at FVTPL Debt instruments included witnin me FVTPL category 3r= measured at fair value with 3II
-changes recognised in the Statement of Profit and Loss.

I Equity Investments;

Aii equity investments except in subsidiary are measured at cost in scope of Ind AS 103 are measured at fair value. For ail other equity
instruments, the company may make an irrevocable election to present in other comprehensive income subsequent changes in the fair
value The company makes such election on3n instrument-by-mstrument basis The classification is rr-3de on initial recognition and is
irrevocable.

if the company decides to classify an equity instruments as a FVTOO, then all fair value changes on the instrument, excluding dividends,
are recognized in other comprehensive income (OCi). There is no recycling of the amounts from OCi to Statement of Profit and Loss,
even on sale of Investment However, the company may transfer the cumulative gain or less within equity

Equity instruments included within the FVTPL category are measured at fair value with ail changes recognised in the Statement of Profit
and Loss.

Derecognition

A financial asset (or, where applicable, a part of financial asset or part of a group of similar financial assets) is primarily derecognised
(i e. removed from the company''s Balance sheet) when:

- The rights to receive Cash flows from the ASSET have expired, or

-The company has transferred substantially all the risks and rewards of the asset

Investments in shares are stated at market value as on date of Balance Sheet 3nd M to M gain / Joss is shown in profit and loss account.
m Borrowing cost

Borrowing costs directly attributable to the acquisition, construction or production of an asset that necessarily takes a substantial period
of time to get -e3dy for its intended use or sale are capitalized as part of the cost of the respective asset. All other borrowing costs
areexpensed in the period in which they occur. Borrowing costs consistof interest and other costs that the Company incurs in connection
with tne borrowing of funds Borrowing -cost 3iso includes exchange differences to the extent regarded as 3n adjustment to the
borrowing costs.

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Mar 31, 2024

ACCOMPANYING NOTES TO THE STAND-ALONE FINANCIAL STATEMENTS1 CORPORATE INFORMATION

HCP Plastene Bulkpack Limited (the ''Company'') is a public listed company domiciled in India. Its Equity Shares are listed on Bombay Stock Exchange (''BSE''). The Company is a diversified business dealing in FIBC Jumbo Bags, PP Woven Sack Bags, PP Woven Labels and related products.

2 SUMMAY OF BASIS OF COMPALIANCE, BASIS OF PREPARATION AND PRESENTATION, CRITICAL ACCOUNTING ESTIMATES, ASSUMPTIONS AND JUDGEMENTS AND MATERIAL ACCOUNTING POLICIES :2.1 Basis of Compliance :

The Stand-alone financial statements comly in all material aspects, with Indian Accounting Standards (Ind AS) notified under section 133 of Companies Act 2013 (''the Act'') read with the Companies (Indian Accounting Standards) Rule, 2015.

2.2 Basis for Preparation of Accounts:

The Stand - alone Financial Statements have been prepared on the historical cost basis except for certain financial instrumentsand defined benefit plans which are measured at fair values at the end of each reporting period, as explained in the accounting policies below which are consistently followed except where a new accounting standard or amendment to the existing accounting standards requires a change in the policy hitherto applied. Presentation requirements of Division II of Schedule III to the Companies Act, 2013, as applicable to the Standalone Financial Statements have been followed.

All assets and liabilities have been clasified as current or non-current as per the Company''s normal operating cycle and other criteria set out in the Schedule II to the Act.

2.3 Changes in Accounting Policies and Disclosures :

New and amended standards

The Ministry of Corporate Affairs has notified Companies (Indian Accounting Standards) Amendment Rules, 2023 dated March 31, 2023 to amend the following Ind AS which are effective for annual periods beginning on or after April 1,2023. The Group applied for the firsttime these amendments.

(i) Definition of Accounting Estimates - Amendments to Ind AS 8

The amendments clarify the distinction between changes in accounting estimates, changes in accounting policies and the correction of errors. It has also been clarified how entities use measurement techniques and inputs to develop accounting estimates. The amendments had no impact on the Group''s consolidated financial statements.

(ii) Disclosure of Accounting Policies - Amendments to Ind AS 1

The amendments aim to help entities provide accounting policy disclosures that are more useful by replacing the requirement for entities to disclose their ''significant'' accounting policies with a requirement to disclose their ''material'' accounting policies and adding guidance on how entities apply the concept of materiality in making decisions about accounting policy disclosures. The amendments have had an impact on the Group''s disclosures of accounting policies , but not on the measurement, recognition or presentation of any items in the Group''s financial statements.

(iii) Deferred Tax related to Assets and Liabilities arising from a Single Transaction - Amendments to Ind AS 12

The amendments narrow the scope of the initial recognition exception under Ind AS 12, so that it no longer applies to transactions that give rise to equal taxable and deductible temporary differences such as leases.

Standards issued but not yet effective

There are no standards that are notified and not yet effective as on date.

2.4 Summary of Material Accounting Policies:

The following are the significant accounting policies applied by the Company in preparing its financial statements consistently to all the periods presented.

i Going concern assumption

The company has achieved a turnover of '' 4,554.91 Lakhs during the fiscal year 2023-2024 (from April 1, 2023, to March 31, 2024), and the financial statements have been prepared assuming that the company will continue its operations as a going concern.

ii Current verses non-current classification

The Company presents assets and liabilities in the Balance Sheet based on current/non-current classification.

An asset is current when it is:

• Expected to be realised or intends to be sold or consumed in the normal operating cycle;

• Help primarily for the purpose of trading;

• Expected to be realised within twelve months after the reporting period; or

• Cash and cash equivalent unless restricted from being exchanged or used to settle a liability for at least twelve months after the reporting period.

All other assets are classified as non-current.

A liability is current when:

• It is expected to be settled in the normal operating cycle;

• It is held primarily for the purpose of trading;

• It is due to be settled within twelve months after the reporting period; or

• There is no unconditional right to defer the settlement of the liability for at least twelve months after the reporting period. The Company classifies all other liabilities as non-current.

However as CIRP process has been initiated all liabilities towards Banking Facilities have been converted in to Current Demands and hence shown under Current Liabilities.

Operating cycle

Operating cycle of the Company is the time between the acquisition of assets for processing and their realization in cash or cash equivalents.

As the Company''s normal operating cycle is not clearly identifiable, it is assumed to be twelve months.

iii Use of estimates and judgements

The estimates and judgments used in the preparation of the financial statements are continuously evaluated by the Company and are based on historical experience and various other assumption and factors (including expectations of future events) that the Company believes to be reasonable under the existing circumstances. Difference between actual results estimates are recognized in the period in which the result is known/materialized.

The said estimates are based on the facts and events, that existed as at reporting date, or that occurred after that date but provide additional evidence about conditions existing as at the reporting date.

iv Financial instruments

A financial instrument is a contract that gives rise to a financial asset of one entity and a financial liability or equity instrument of another entity.

A Financial asset

(i) Classification and measurement Classification Classification

The Company classifies its financial assets, other than investments in subsidiaries and joint venture in the following measurement categories:

a. those to be measured subsequently at fair value(either through other comprehensive income, or through profit or loss), and

b. those measured at amortised cost.

The classification depends on the Company''s business model for managing the financial assets and the contractual terms of the cash flows."

For assets measured at fair value, gains and losses will either be recorded in profit or loss or other comprehensive income. For investments

in debt instruments, this will depend on the business model in which the investment is held. For investments in equity instruments, this will depend on whether the Company has made an irrevocable election at the time of initial recognition to account for the equity investment at fair value through other comprehensive income.

The Company reclassifies debt investments when and only when its business model for managing those assets changes. Measurement

At initial recognition , all financial assets are measured initially at fair value plus, in the case of financial assets not recorded at fair value through profit or loss, transaction costs that are attributable to the acquisition of the financial asset. Transaction costs of financial assets carried at fair value through profit or loss are expensed in profit or loss. Purchase or sales of financial assets that require delivery of assets within a time frame established by regulation or convention in the market place ( regular way trade ) are recognised on trade date.

Debit Instrument

Subsequent measurement of debt instruments depends on the Company''s business model for managing the asset and the cash flow characteristics of the asset . There is only one measurement category into which the Company classifies its debt instruments as follows:

Amortised cost: Assets that are held for collection of contractual cash flows where those cash flows represent solely payments of principal and interest are measured at amortised cost. A gain or loss on a debt investment that is subsequently measured at amortised cost and is not part of a hedging relationship is recognised in profit or loss when the asset is derecognised or impaired. Interest income from these financial assets is included in finance income using the effective interest rate method.

Trade Receivable

Trade receivables are recognised initially at fair value and subsequently measured at amortised cost using the effective interest method, less provision for impairment.

Cash and Cash equivalents

For the purpose of presentation in the statement of cash flows, cash and cash equivalents includes cash on hand, deposits held at call with financial institutions, other short-term, highly liquid investments with original maturities of three months or less that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value, and bank overdrafts which are repayable on demand and form an integral part of an entity''s cash management system

Other bank overdrafts are shown within borrowings in current liabilities in the balance sheet.

(ii) Impairment of financial assets

The Company assesses on a forward looking basis the expected credit losses associated with its assets carried at amortised cost. The impairment methodology applied depends on whether there has been a significant increase in credit risk. Note 39.2 details how the Company determines whether there has been a significant increase in credit risk . For trade receivables only, the Company applies the simplified approach permitted by Ind AS 109 Financial Instruments, which requires expected lifetime losses to be recognised from initial recognition of the receivables.

(iii) Derecognition of financial assets

A financial asset (or, where applicable, a part of a financial asset or part of a group of similar financial assets) is primarily derecognised when:

• The rights to receive cash flows from the financial asset have been transferred, or

• The Company retains the contractual rights to receive the cash flows of the financial asset but assumes a contractual obligation to pay the cashflows to one or more recipients.

When the Company has transferred an asset, it evaluates whether it has transferred substantially all risks and rewards of ownership of the financial asset. In such cases, the financial asset is derecognised. When the Company has not transferred substantially all the risks and rewards of ownership of a financial asset, the financial asset is not derecognised.

When the Company has neither transferred a financial asset nor retains substantially all risks and rewards of ownership of the financial asset, the financial asset is derecognised if the Company has not retained control of the financial asset. When the Company retains control of the financial asset, the asset is continued to be recognised to the extent of continuing involvement of the asset.

(iv) Income recognition

Interest income from debt instruments is recognised using the effective interest rate method. The effective interest rate is the rate that exactly discounts estimated future cash receipts through the expected life of the financial asset to the gross carrying amount of a financial asset. When calculating the effective interest rate, the Company estimates the expected cash flows by considering all the contractual terms of the financial instrument (for example, prepayment, extension, call and similar options)but does not consider the expected credit losses.

Dividends are recognised in profit or loss only when the right to receive payment is established, it is probable that the economic benefits associated with the dividend will flow to the Company, and the amount of the dividend can be measured reliably.

B Financial liabilities

(i) Initial recognition and measurement:

Financial liabilities are classified, at initial recognition, as financial liabilities at fair value through statement of Profit and Loss, loans and borrowing, payables, or as derivatives designated as hedging instruments in an effective hedge, as appropriate. All financial liabilities are recognized initially at fair value and, in the case of loans and borrowings and payables, net of directly attributable transaction costs.

The company''s financial liabilities include trade and other payables, loans and borrowings including cash credit facilities from banks and derivative financial instruments.

(ii) Subsequent measurement:"

The measurement of financial liabilities depends on their classification, as described below:

Financial liabilities at fair value through Statement of Profit and loss.Financial liabilities at fair value through profit and loss include financial liabilities held for trading and financial liabilities designated upon initial recognition at fair value through Profit and loss. Financial liabilities are classified as held for trading if they are incurred for the purpose of repurchasing in the near term. This category also includes derivatives financial instruments entered into by the company that are not designated as hedging instruments in hedge relationships as defined by Ind AS 109.

Gains or losses on liabilities held for trading are recognized in the Statement of Profit and loss.

Financial liabilities designated upon initial recognition at fair value through statement of profit and loss are designated as such at the initial date of recognition and only if the criteria in Ind AS 109 are satisfied. For liabilities designated as FVTPL, fair value gains/losses attributable to changes in own credit risks are recognized in OCI. These gains/losses are not subsequently transferred to P&L. However, the company may transfer the cumulative gain or loss within equity. All other changes in fair value of such liability are recognized in the statement of profit and loss.

Loans and borrowings:

After initial recognition, interest-bearing loans and borrowings are subsequently measured at amortised cost using the EIR method. Gains and losses are recognized in the statement of profit and loss when the liabilities are derecognised as well as through the EIR amortisation process.

Amortised cost is calculated by taking into account any discount or premium on acquisition and fees or costs that are an integral part of the EIR. The EIR amortisation is included as finance costs in the statement of profit and loss.

This category generally applies to borrowings.

Financial guarantee contracts:

Financial guarantee contracts issued by the company are those contracts that require a payment to be made to reimburse the holder for a loss it incurs because the specified debtor fails to make a payment when due in accordance with the terms of a debt instrument.

Financial guarantee contracts are recognized initially as a liability at fair value through statement of profit and loss (FVTPL), adjusted for transaction costs that are directly attributable to the issuance of the guarantee. Subsequently, the liability is measured at the higher of the amount of loss allowance determined as per impairment requirements of Ind AS 109 and the amount recognized less cumulative amortisation.

(iii) Derecognition:

A financial liability is derecognised when the obligation under the liability is discharged or cancelled or expires. When an existing financial liability is replaced by another from the same lender on substantially different terms, or the terms of an existing liability are substantially modified , such an exchange or modification is treated as the derecognition of the original liability and the recognition of a new liability. The difference in the respective carrying amounts is recognized in the statement of Profit and loss.

C Derivative financial instrument:""

The Company uses derivative financial instruments, such as forward currency contracts, to hedge its foreign currency risks. Such derivative" financial instrument is initially recognized at fair value through consolidated statement of Profit and loss (FVTPL) on the date on which a derivative contract is entered into and is subsequently re-measured at fair value. Derivatives are carried as financial assets when the fair value is positive and as financial liabilities when the fair value is negative.

Any gains or losses arising from changes in the fair value of derivative financial instrument are classified in the consolidated statement of Profit and loss and reported with foreign exchange gains/(loss) not within results from operating activities. Changes in fair value and gains /( losses) on settlement of foreign currency derivative financial instruments relating to borrowings, which have not been designed as hedge are recorded as finance cost.

D Offsetting of financial instruments

Financial assets and financial liabilities are offset and the net amount is reported in the balance sheet if there is a currently enforceable legal right to offset the recognized amounts and there is an intention to settle on a net basis, to relate the assets and settle the liabilities simultaneously.

a Foreign Currency Transactions:

The Company''s financial statements are presented in INR, which is also the Company''s functional and presentation currency. Transactions in Foreign currency are recorded at the rate of exchange in force at the time transactions are effected and exchange difference, if any, on settlement of transaction is recognized in Profit & Loss Account. Monetary transactionbalance other than FCDL as on date of Balance Sheet have been reported at exchange rate on Balance Sheet date and difference charged to profit & loss account. Forward contract premium paid on forward contracts are amortized to Profit & loss account over life of such contract.

b Fair value measurement

The Company measures financial instruments such as Investments at fair value at the end of each reporting period. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The fair value measurement is based on the presumption that the transaction to sell the asset or transfer the liability takes place either:

• In the principal market for the asset or liability Or

• In the absence of a principal market, in the most advantageousmarket for the asset or liability.

The principal or the most advantageous market must be accessible by the Company.

The fair value of an asset or a liability is measured using theassumptions that market participants would use when pricing theasset or liability, assuming that market participants act in theireconomic best interest.

A fair value measurement of a non-financial asset takes into account market participant''s ability to generate economic benefits by using the asset in its highest and best use or by selling it to another market participant that would use the asset in its highest and best use.

The Company uses valuation techniques that are appropriate in the circumstances and for which sufficient data are available to measurefair value, maximising the use of relevant observableinputsandminimising the use of unobservable inputs.

All assets and liabilities for which fair value is measured or disclosed in the financial statements are categorised within the fair value hierarchy, described as follows, based on the lowest level input that issignificant to the fair value measurement as a whole:

• Level 1 — Quoted (unadjusted) market prices in active markets for identical assets or liabilities.

• Level 2 — Valuation techniques for which the lowest level input that is significant to the fair value measurement is directly or indirectly observable.

• Level 3 — Valuation techniques for which the lowest level input that is significant to the fair value measurement is unobservable.

For assets and liabilities that are recognised in the financial statements on a recurring basis, the Company determines whether transfers have occurred between levels in the hierarchy by reassessing categorisation (based on the lowest level input that issignificant to the fair value measurement as a whole) at the end of each reporting period.

The Company''s Management determines the policies and procedures for both recurring fair value measurement, such as derivative instruments and for non-recurring measurement, such as asset held for sale.

External valuers are involved for valuation of significant assets , such as properties. Involvement of external valuers is decided upon annually by the management after discussion with and approval by the Company''s Audit Committee. Selection criteria include market knowledge, reputation, independence and whether professional standards are maintained. Management decides, after discussions with the Company''s external valuers, which valuation techniques and inputs to use for each case.

However, such fair value report is not available for all assets except equity investment as on 31^st March, 2020, Hence impairment Loss not booked for immovable properties.

At each reporting date, management analyses the movements in the values of assets and liabilities which are required to be re-measured or re-assessed as per the Company''s accounting policies. For this analysis, The Management verifies the major inputs applied in the latest valuation by agreeing the information in the valuation computation to contracts and other relevant documents.

The Management , in conjunction with the Company''s external valuers , also compares the change in the fair value of each asset and liability with relevant external sources to determine whether the change isreasonable on yearly basis.

For the purpose of fair value disclosures , the Company has determined classes of assets and liabilities on the basis of the nature, characteristics and risks of the asset or liability and the level of the fair value hierarchy, as explained above. This note summarises accounting policy for fair value. Other fair value related disclosures are given in the relevant notes.

• Significant accounting judgements, estimates and assumptions

• Quantitative disclosures of fair value measurement hierarchy

• Property, plant and equipment & Intangible assets measured atfair value on the date of transition

• Investment properties

• Financial instruments (including those carried at amortised cost) c Property, plant and equipment

Property, plant and equipment are stated at cost, less accumulated depreciation and impairment, if any. Costs directly attributable to acquisition are capitalized until the property , plant and equipment are ready for use, as intended by the Management. The charge in respect of periodic depreciation is derived at after determining an estimate of an asset''s expected useful life and the expected residual value at the end of its life.

The Company depreciates property, plant and equipment over their estimated useful lives using the straight-line method. Schedule II to the Act prescribes the useful lives for various class of assets. For certain class of assets, based on technical evaluation and assessment, Management believes that the useful lives adopted by it reflect the periods over which these assets are expected to be used.

Accordingly for those assets, the useful lives estimated by the management are different from those prescribed in the Schedule.

Management''s estimates of the useful lives for various class of PPE are as given below:
Assets	Useful Life
Building	0 -30 years
Plant & Machinery-Continue process	8 years
Plant & Machinery- Normal Process	15 years
Electric Installation	10 years
D. G. Set	10 years
Office Equipment	5 years
Furniture	10 years
Vehicle	8 years
Air Conditioner	10 years
Computeres	3 years

Derecognition

An item of property, plant and equipment is derecognised upon disposal or when no future economic benefits are expected from its use or disposal. Any gain or loss arising on derecognition of the asset (calculated as the difference between the net disposal proceeds and the carrying amount of the asset ) is included in the Statement of Profit and Loss when the asset is derecognised. However as stated above No Impairment loss is booked on 31^st March, 2024.

Depreciation

Depreciation on property, plant and equipment is provided so as to write off the cost of assets less residual values over their useful lives of the assets, using the straight line method as prescribed under PartC of Schedule II to the Companies Act 2013.

When parts of an item of property , plant and equipment have different useful life, they are accounted for as separate items (Major Components) and are depreciated over their useful life or over the remaining useful life of the principal assets whichever is less.

Depreciation for assets purchased/sold during a period isproportionately charged for the period of use, irrespective of actual operation and uses of the assets in question.

d Intangible Assets

Intangible assets acquired separately are measured on initial recognition at cost. Following initial recognition, Intangible assets are carried at cost less accumulated amortization and accumulated impairment losses, if any.

The useful lives of intangible assets are assessed as either finite orindefinite.

Intangible assets with finite lives are amortized over their useful economic lives and assessed for impairment whenever there is an indication that the intangible asset may be impaired. The amortization period and the amortization method for an intangible asset with a finite useful life are reviewed at least at the end of each reporting period. Changes in the expected useful life or the expectedpattern of consumption of future economic benefits embodied inthe assets are considered to modify the amortization period or method, as appropriate , and are treated as changes in accounting estimates . The amortization expense on intangible assets with finite lives is recognised in the Statement of Profit and Loss . Intangible assets with indefinite useful lives are not amortized, but are tested for impairment annually , either individually or at the cash generating unit level. The assessment of indefinite life is reviewed annually to determine whether the indefinite life continues to be supportable. If not, the change in useful life from indefinite to finite is made on a prospective basis.

Gains or losses arising from derecognition of an intangible asset are measured as the difference between the net disposal proceeds and the carrying amount of the asset and are recognised in the Statementof Profit and Loss when the asset is derecognised.

Amortisation

Software is amortized over management estimate of its useful life of 3 years.

Impairment of non-financial assets

The Company assesses at each reporting date whether there is an indication that an asset may be impaired. If any indication exists, the Company estimates the asset''s recoverable amount. An asset''s recoverable amount is the higher of an asset''s or cash generating unit''s (CGU) net selling price and its value in use. The recoverable amount is determined for an individual asset, unless the asset does not generate cash inflows that are largely independent of those from other assets or groups of assets. Where the carrying amount of an asset or CGU exceeds its recoverable amount, the asset is considered impaired and is to its recoverable amount.

In assessing value in use , the estimated future cash flows are discounted to their present value using a pre-tax discount rate that " reflects current market assessments of the time value of money and the risks specific to the asset. In determining net selling price, recent market transactions are taken into account , if available . If no such transactions can be identified, an appropriate valuation model is used.

e Inventories

Inventories of Raw material , Work - in - progress , finished goods and Stock-in-trade are valued at the lower of cost and net realizable value . However , Raw material and other items held for use in the production of inventories are not written down below cost if the finished products in which they will be incorporated are expected to be sold at or above cost.

Costs incurred in bringing each product to its present location andconditions are accounted for as follows:

• Raw materials : cost includes cost of purchase and other costs incurred in bringing the inventories to their present location and condition. Cost is determined on first in, first out basis.

• Finished goods and work in progress: cost includes cost of direct materials and Labours and a proportion of manufacturing overheads based on the normal operating capacity, but excluding borrowing costs. Cost is determined on first in, first out basis

• Traded goods: cost includes cost of purchase and other costs incurred in bringing the inventories to their present location and condition.

Cost is determined on weighted average basis.

All other inventories of stores, consumables, project material at site are valued at cost or NRV whichever is low. The stock of waste is valued at net realisable value.

Net realisable value is the estimated selling price in the ordinary course of business, less estimated costs of completion and the estimated costs necessary to make the sale.

f Revenue Recognition:

f (a) Sale of Goods

* Revenue is recognised upon transfer of control of promised goods to customers in an amount that reflects the consideration which the Company expects to receive in exchange for those goods.

* Revenue from the sale of goods is recognised at the point in time when control is transferred to the customer which is usually on dispatch / delivery of goods, based on contracts with the customers.

* Revenue towards satisfaction of performance obligation is measured based on the transaction price , which is the consideration, adjusted for volume discounts, price concessions, incentives, and returns, if any, as specified in the contracts with the customers.

* Revenue excludes taxes collected from customers on behalf of the government. Accruals for discounts/incentives and returns are estimated (using the most likely method) based on accumulated experienceand underlying schemes and agreements with customers.

Due to the short nature of credit period given to customers, there is no financing component in the contract. The Company does not expect to have any contracts where the period between the transfer of the promised goods or services to the customer and payment by the customer exceeds one year. As a consequence, it does not adjust any of the transaction prices for the time value of money.

Revenue from the sale of goods is measured at the fair value of the consideration received or receivable including net of returns and allowances, tradediscounts, volume rebates and GST.

f (b) Interest income

Interest is recognized on a time proportion basis taking into account the amount outstanding and the applicable interest rate.

f (c) Dividend

Dividend Income is recognised when the Company''s right to receive established which is generally occur when the shareholders approve the dividend.

g Taxes on Income

Tax expense comprises of current income tax and deferred tax.

Current income tax

Current income tax assets and liabilities are measured at the amount expected to be recovered from or paid to the taxation authorities.

The tax rates and tax laws used to compute the amount are those that are enacted or substantively enacted, at the reporting date.

Current income tax relating to items recognised outside the statement of Profit and Loss is recognised outside the statement of Profit and Loss (either in other comprehensive income or in equity ). Deferred tax items are recognised in correlation to the underlying transaction either in OCI or directly in equity.

Management periodically evaluates positions taken in the tax returns with respect to situations in which applicable tax regulations are subject to interpretation and establishes provision where appropriate.

Deffered IncomeTax

Deferred income tax is provided using the liability method on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts for financial reporting purpose at the reporting date.

Deferred tax liabilities are recognized for all taxable temporary differences, except.

- When the Deferred tax liability arises from the initial recognition of goodwill or an asset or liability in a transaction other than a business combination that at the time of the transaction affects neither accounting profit nor taxable profit or loss;

- In respect of taxable temporary differences associated with investments in subsidiaries, when the timing of the reversal of the temporary differences can be controlled and it is probable that the differences will not reverse in the foreseeable future.

Deferred tax assets are recognized for all deductible temporary differences, the carry forward of unused tax credits and any unused tax losses. Deferred tax assets are recognized to the extent it is probable that future taxable amounts will be available against the deductible temporary differences and the carry forward of unused tax credits and unused tax losses can be utilised except:

- When the Deferred TAX ASSET arises relating to the deductible temporary difference arises from the initial recognition of an ASSET or LIABILITIES in a transaction other than a business combination that at the time of the transaction affects neither accounting PROFIT nor TAXABLE PROFIT or LOSS.

- In respect of deductible temporary differences associated with investments in subsidiaries , associates and interests in joint arrangements, deferred tax assets are recognised only to the extent that it is probable that the temporary differences will reverse in the foreseeable future and taxable profit will be available against which the temporary differences can be utilised.

The carrying amount of deferred tax assets is reviewed at each reporting date and reduced to the extent that it is no longer probable that sufficient taxable profit will be available to allow all or part of the deferred tax assets is to be utilised.

Unrecognized deferred tax assets are re-assessed at each reporting date and are recognised to the extent that it has become probable that future taxable profits will allow the deferred tax asset to be recovered.

Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the year when the asset is realised or the liability is settled, based on tax rates (and tax laws) that have been enacted or substantively enacted at the reporting date.

Deferred tax relating to items recognised outside the statement of Profit and Loss is recognised outside the statement of Profit and Loss.

Deferred tax items are recognised in correlation to the underlying transaction either in other comprehensive income or directly in equity.

Deferred tax assets and deferred tax liabilities are offset if a legally enforceable right exists to set off current tax assets against current tax liabilities and the deferred taxes relate to the same taxable entity and the same taxation authority.

h Employee benefits Short-term obligations

Liabilities for wages and salaries, including non-monetary benefits that are expected to be settled wholly within 12months after the end of the period in which the employees render the related service are recognized 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. The liabilities are presented as current employee benefit obligations in the balance sheet

Other long-term employee benefit obligations

The liabilities for earned leave and sick leave are not expected to be settled wholly within 12 months after the end of the period in which the employees render the related service. They are therefore 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 on government bonds using the projected unit credit method . The benefits are discounted using the market yields 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 profit or loss.

The obligations are presented as current liabilities in the balance sheet if the Company does not have an unconditional right to defer settlement for at least twelve months after the reporting period, regardless of when the actual settlement is expected to occur.

Post-employment obligations

The Company operates the following post-employment schemes:

a) defined benefit plans such as gratuity and

b) defined contribution plans such as provident fund.

Defined benefit plan

The liability or asset recognised in the balance sheet in respect of defined benefit 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 cashout flows 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.

Changes in the present value of the defined benefit obligation resulting from plan amendments or curtailments are recognised immediately in profit or loss as past service cost.

Defined contribution plans

The Company pays provident fund contributions to publicly administered provident funds as per local regulations. The Company has no further payment obligations once the contributions have been paid. The contributions are accounted for as defined contribution plans and the contributions are recognised as employee benefit expense when they are due. Prepaid contributions are recognised as an asset to the extent that a cash refund or a reduction in the future payments is available.

i Export incentives

Export incentives under various schemes notified by government are accounted for , in the year of exports based on eligibility and whenthere is no uncertainty in receiving the same.

j Investment and other Financial Assets

Financial assets are recognized and measured in accordance with Ind AS 109 - Financial Instruments. Accordingly, the company recognizes financial asset only when it has contractual right to receive cash or other financial assets from another Company.

a. Initial recognition and measurement

All financial assets, except investment in subsidiary are measured initially at fair value plus, transaction costs that are attributable to the acquisition of the financial asset. The transaction cost incurred for the purchase of financial assets held at fair value through profit or loss is expended in the statement of Profit and Loss immediately.

b. Subsequent measurement

For the purpose of Subsequent measurement financial assets are classified in three categories:

- Measured at amortised cost

- Measured at fair value through other comprehensive income (FVOCI)

- Measured at fair value through Profit and Loss (FVTPL) k Debt instruments at amortised cost

Assets that are held for collection of contractual cash flows where those cash flows represent solely payments of principal and interest are measured at amortised cost. Financial assets are accounted for at amortized cost using the effective interest method. This category comprises trade accounts receivable, loans, cash and cash equivalents, bank balances and other financial assets. A gain or loss on a debt instrument that is subsequently measured at amortized cost and is not part of a hedging relationship that is recognized in the Statement of Profit and Loss when the asset is derecognized or impaired. Interest income from these financial assets is included in finance income using the effective interest rate method.

Debt instruments at fair value through other comprehensive income (FVOCI)

Assets that are held for collection of contractual cash flows and for selling the financial assets, where the assets'' cash flows represent solely payments of principal and interest, are measured at fair value through Other Comprehensive Income (FVOCI).

The movement in carrying amount are taken through Other Comprehensive Income, except for the recognition of impairment gains or losses , interest revenue and foreign exchange gains and losses which are recognized in the Statement of Profit and Loss. When the financial asset is derecognized , the cumulative gain or loss previously recognized in Other Comprehensive Income is reclassified from equity to the Statement of Profit and Loss and recognized in other gains/ (losses). Interest income from these financial assets is included in finance income using the effective interest rate method.

Debt instruments at fair value through Profit and Loss (FVTPL)

FVTPL is a residual category for debt instruments. Any debt instrument, which does not meet the criteria for categorisation at amortized cost or FVTOCI, is classified as at FVTPL. Debt instruments included within the FVTPL category are measured at fair value with all changes recognised in the Statement of Profit and Loss.

l Equity Investments:

All equity investments, except in subsidiary are measured at cost in scope of Ind AS 109 are measured at fair value. For all other equity instruments, the company may make an irrevocable election to present in other comprehensive income subsequent changes in the fair value. The company makes such election on an instrument-by-instrument basis. The classification is made on initial recognition and is irrevocable.

If the company decides to classify an equity instruments as a FVTOCI, then all fair value changes on the instrument, excluding dividends, are recognized in other comprehensive income (OCI). There is no recycling of the amounts from OCI to Statement of Profit and Loss, even on sale of Investment. However, the company may transfer the cumulative gain or loss within equity.

Equity instruments included within the FVTPL category are measured at fair value with all changes recognised in the Statement of Profit and Loss.

Derecognition

A financial asset (or, where applicable, a part of financial asset or part of a group of similar financial assets) is primarily derecognised (i.e. removed from the company''s Balance sheet) when:

- The rights to receive Cash flows from the ASSET have expired, or

- The company has transferred substantially all the risks and rewards of the asset

Investments in shares are stated at market value as on date of Balance Sheet and M to M gain / loss is shown in profit and loss account.

m Borrowing cost

Borrowing costs directly attributable to the acquisition, construction or production of an asset that necessarily takes a substantial period of time to get ready for its intended use or sale are capitalized as part of the cost of the respective asset. All other borrowing costs areexpensed in the period in which they occur. Borrowing costs consistof interest and other costs that the Company incurs in connection with the borrowing of funds . Borrowing cost also includes exchange differences to the extent regarded as an adjustment to the borrowing costs.

n Provisions, contingent liabilities and contingent assets

Provisions are recognized when the Company has a present obligation (legal or constructive)as a result of a past event, it is probable that an outflow of resources embodying economic benefit will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation . These are reviewed at each Balance Sheet date and adjusted to reflect the current best estimates.

Contingent liabilities are not recognized but are disclosed in the notes. Contingent assets are neither recognised nor disclosed in the financial statements

o Related Party Transactions:

Disclosure of transactions with Related Parties, as required by Ind AS 24 "Related Party Disclosures" has been set out in a separate statement annexed to this Schedule as per Note no.36. Related Parties as defined in Ind AS 24 have been identified on the basis of representations made by key managerial personnel and information available with the Company.

p Provisions:

A provision is recognized when Company has a legal and constructive obligation as a result of a past event, for which it is probable that cash outflow will be required and a reliable estimate has been made of the amount of the obligation. Accordingly, provision for income tax payable has not been done. MAT credit of '' Nil (P.Y. '' Nil) lakhs and unabsorbed depreciation of '' 269.43 (P.Y. '' 333.89) lakhs have been ignored for the purpose of DTA provision.

q Classification of Subsidy Receivable into Current and Non-Current Asset:

(a) The Company has received eligibility certificate from concerned department regarding VAT concession for amount of Subsidy of '' 3066.38 Lakhs for 8 years in equal installments. The VAT Concession is for the period of 8 years from 01-01-2014 to 31-01-2021.

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Mar 31, 2023

CORPORATE INFORMATION

HCP Plastene Bulkpack Limited (the ''Company'') is a public listed company domiciled in India. Its Shares are listed on Bombay Stock Exchange (''BSE''). The Company is a diversified business dealing in FIBC Jumbo Bags, PP Woven Sack Bags, PP Woven Labels and related products.

SUMMARY OF BASIS OF COMPALIANCE, BASIS OF PREPARATION AND PRESENTATION, CRITICAL ACCOUNTING ESTIMATES, ASSUMPTIONS AND JUDGEMENTS AND SIGNIFICANT ACCOUNTING POLICIES

A Basis of Compliance :

The Standalone financial statements comply in all material aspects, with Indian Accounting Standards (Ind AS) notified under section 133 of Companies Act 2013 (''the Act'') read with the Companies (Indian Accounting Standards) Rule, 2015.

B Basis for Preparation of Accounts:

The Stand-alone Financial Statements have been prepared on the historical cost basis except for certain financial instrumentsand defined benefit plans which are measured at fair values at the end of each reporting period, as explained in the accounting policies below which are consistently followed except where a new accounting standard or amendment to the existing accounting standards requires a change in the policy hitherto applied. Presentation requirements of Division II of Schedule III to the Companies Act, 2013, as applicable to the Standalone Financial Statements have been followed.

All assets and liabilities have been clasified as current or non-current as per the Company''s normal operating cycle and other criteria set out in the Schedule II to the Act.

C Summary of Significant Accounting Policies:

The following are the significant accounting policies applied by the Company in preparing its financial statements consistently to all the periods presented.

i. Going concern assumption

The company has achieved a turnover of '' 4,839.53 Lakhs during the fiscal year 2022-2023 (from April 1, 2022, to March 31, 2023), and the financial statements have been prepared assuming that the company will continue its operations as a going concern.

ii. Current verses non-current classification

The Company presents assets and liabilities in the Balance Sheet based on current/non-current classification.

An asset is current when it is:

• Expected to be realised or intends to be sold or consumed in the normal operating cycle;

• Help primarily for the purpose of trading;

• Expected to be realised within twelve months after the reporting period; or

• Cash and cash equivalent unless restricted from being exchanged or used to settle a liability for at least twelve months after the reporting period.

All other assets are classified as non-current.

A liability is current when:

• It is expected to be settled in the normal operating cycle;

• It is held primarily for the purpose of trading;

• It is due to be settled within twelve months after the reporting period; or

• There is no unconditional right to defer the settlement of the liability for at least twelve months after the reporting period. The Company classifies all other liabilities as non-current.

However as CIRP process has been initiated all liabilities towards Banking Facilities have been converted in to Current Demands and hence shown under Current Liabilities.

Operating cycle

Operating cycle of the Company is the time between the acquisition of assets for processing and their realization in cash or cash equivalents. As the Company''s normal operating cycle is not clearly identifiable, it is assumed to be twelve months.

iii. Use of estimates and judgements

The estimates and judgments used in the preparation of the financial statements are continuously evaluated by the Company and are based on historical experience and various other assumption and factors (including expectations of future events) that the Company believes to be reasonable under the existing circumstances.

Difference between actual results estimates are recognized in the period in which the result is known/materialized. The said estimates are based on the facts and events, that existed as at reporting date, or that occurred after that date but provide additional evidence about conditions existing as at the reporting date.

iv. Financial instruments

A financial instrument is a contract that gives rise to a financial asset of one entity and a financial liability or equity instrument of another entity.

A. Financial asset

(i) Classification and measurement Classification

The Company classifies its financial assets, other than investments in subsidiaries and joint venture in the following measurement categories:

a. those to be measured subsequently at fair value(either through other comprehensive income, or through profit or loss), and

b. those measured at amortised cost.

The classification depends on the Company''s business model for managing the financial assets and the contractual terms of the cash flows.

For assets measured at fair value, gains and losses will either be recorded in profit or loss or other comprehensive income. For investments in debt instruments, this will depend on the business model in which the investment is held. For investments in equity instruments, this will depend on whether the Company has made an irrevocable election at the time of initial recognition to account for the equity investment at fair value through other comprehensive income.

The Company reclassifies debt investments when and only when its business model for managing those assets changes.

Measurement

At initial recognition, all financial assets are measured initially at fair value plus, in the case of financial assets not recorded at fair value through profit or loss, transaction costs that are attributable to the acquisition of the financial asset. Transaction costs of financial assets carried at fair value through profit or loss are expensed in profit or loss. Purchase or sales of financial assets that require delivery of assets within a time frame established by regulation or convention in the market place (regular way trade) are recognised on trade date.

Debt instruments

Subsequent measurement of debt instruments depends on the Company''s business model for managing the asset and the cash flow characteristics of the asset. There is only one measurement category into which the Company classifies its debt instruments as follows:

Amortised cost: Assets that are held for collection of contractual cash flows where those cash flows represent solely payments of principal and interest are measured at amortised cost. A gain or loss on a debt investment that is subsequently measured at amortised cost and is not part of a hedging relationship is recognised in profit or loss when the asset is derecognised or impaired. Interest income from these financial assets is included in finance income using the effective interest rate method.

Trade receivables

Trade receivables are recognised initially at fair value and subsequently measured at amortised cost using the effective interest method, less provision for impairment.

Cash and cash equivalents

For the purpose ofpresentation in the statement of cash flows, cash and cash equivalents includes cash on hand, deposits held at call with financial institutions, other short-term, highly liquid investments with original maturities ofthree months or less that are readily convertible to known amounts of cash and which are subject to an insignificant risk ofchanges in value, and bank overdrafts which are repayable on demand and form an integral part of an entity''s cash management system. Other bank overdrafts are shown within borrowings in current liabilities in the balance sheet.

(ii) Impairment of financial assets

The Company assesses on a forward looking basis the expected credit losses associated with its assets carried at amortised cost. The impairment methodology applied depends on whether there has been a significant increase in credit risk. Note 46.2 details how the Company determines whether there has been a significant increase in credit risk. For trade receivables only, the Company applies the simplified approach permitted by Ind AS 109 Financial Instruments, which requires expected lifetime losses to be recognised from initial recognition of the receivables.

(iii) Derecognition of financial assets

A financial asset (or, where applicable, a part of a financial asset or part of a group of similar financial assets) is primarily derecognised when:

• The rights to receive cash flows from the financial asset have been transferred, or

• The Company retains the contractual rights to receive the cash flows of the financial asset but assumes a contractual obligation to pay the cashflows to one or more recipients.

When the Company has transferred an asset, it evaluates whether it has transferred substantially all risks and rewards of ownership of the financial asset. In such cases, the financial asset is derecognised. When the Company has not transferred substantially all the risks and rewards of ownership of a financial asset, the financial asset is not derecognised.

When the Company has neither transferred a financial asset nor retains substantially all risks and rewards of ownership of the financial asset, the financial asset is derecognised if the Company has not retained control of the financial asset. When the Company retains control of the financial asset, the asset is continued to be recognised to the extent of continuing involvement of the asset.

(iv) Income recognition

Interest income from debt instruments is recognised using the effective interest rate method. The effective interest rate is the rate that exactly discounts estimated future cash receipts through the expected life of the financial asset to the gross carrying amount of a financial asset. When calculating the effective interest rate, the Company estimates the expected cash flows by considering all the contractual terms of the financial instrument (for example, prepayment, extension, call and similar options)but does not consider the expected credit losses. Dividends are recognised in profit or loss only when the right to receive payment is established, it is probable that the economic benefits associated with the dividend will flow to the Company, and the amount of the dividend can be measured reliably.

B. Financial liabilities

(i) Initial recognition and measurement:

Financial liabilities are classified, at initial recognition, as financial liabilities at fair value through statement of Profit and Loss, loans and borrowing, payables, or as derivatives designated as hedging instruments in an effective hedge, as appropriate.

All financial liabilities are recognized initially at fair value and, in the case of loans and borrowings and payables, net of directly attributable transaction costs.

The company''s financial liabilities include trade and other payables, loans and borrowings including cash credit facilities from banks and derivative financial instruments.

(ii) Subsequent measurement:

The measurement of financial liabilities depends on their classification, as described below:

Financial liabilities at fair value through Statement of Profit and loss.Financial liabilities at fair value through profit and loss include financial liabilities held for trading and financial liabilities designated upon initial recognition at fair value through Profit and loss. Financial liabilities are classified as held for trading if they are incurred for the purpose of repurchasing in the near term. This category also includes derivatives financial instruments entered into by the company that are not designated as hedging instruments in hedge relationships as defined by Ind AS 109.

Gains or losses on liabilities held for trading are recognized in the Statement of Profit and loss.

Financial liabilities designated upon initial recognition at fair value through statement of profit and loss are designated as such at the initial date of recognition and only if the criteria in Ind AS 109 are satisfied. For liabilities designated as FVTPL, fair value gains/losses attributable to changes in own credit risks are recognized in OCI. These gains/losses are not subsequently transferred to P&L. However, the company may transfer the cumulative gain or loss within equity. All other changes in fair value of such liability are recognized in the statement of profit and loss.

Loans and borrowings:

After initial recognition, interest-bearing loans and borrowings are subsequently measured at amortised cost using the EIR method. Gains and losses are recognized in the statement of profit and loss when the liabilities are derecognised as well as through the EIR amortisation process.

Amortised cost is calculated by taking into account any discount or premium on acquisition and fees or costs that are an integral part of the EIR. The EIR amortisation is included as finance costs in the statement of profit and loss.

This category generally applies to borrowings.

Financial guarantee contracts:

Financialguaranteecontractsissuedbythecompanyarethosecontractsthatrequireapaymenttobemadetoreimbursetheholder for a loss it incurs because the specifieddebtorfails to make a payment whendue in accordance with the terms ofadebt instrument. Financial guarantee contracts are recognized initially as a liability at fair value through statement of profit and loss (FVTPL), adjusted for transaction costs that are directly attributable to the issuance of the guarantee. Subsequently, the liability is measured at the higher of the amount of loss allowance determined as per impairment requirements of Ind AS 109 and the amount recognized less cumulative amortisation.

(iii) Derecognition:

A financial liability is derecognised when the obligation under the liability is discharged or cancelled or expires. When an existing financial liability is replaced by another from the same lender on substantially different terms, or the terms of an existing liability are substantially modified, such an exchange or modification is treated as the derecognition of the original liability and the recognition of a new liability. The difference in the respective carrying amounts is recognized in the statement of Profit and loss.

C. Derivative financial instrument:

The Company uses derivative financial instruments, such as forward currency contracts, to hedge its foreign currency risks. Such derivative financial instrument is initially recognized at fair value through consolidated statement of Profit and loss (FVTPL) on the date on which a derivative contract is entered into and is subsequently re-measured at fair value. Derivatives are carried as financial assets when the fair value is positive and as financial liabilities when the fair value is negative.

Any gains or losses arising from changes in the fair value of derivative financial instrument are classified in the consolidated statement of Profit and loss and reported with foreign exchange gains/(loss) not within results from operating activities. Changes in fair value and gains/(losses) on settlement of foreign currency derivative financial instruments relating to borrowings, which have not been designed as hedge are recorded as finance cost.

D. Offsetting of financial instruments

Financial assets and financial liabilities are offset and the net amount is reported in the balance sheet if there is a currently enforceable legal right to offset the recognized amounts and there is an intention to settle on a net basis, to relate the assets and settle the liabilities simultaneously.

i. Foreign Currency Transactions:

The Company''s financial statements are presented in INR, which is also the Company''s functional and presentation currency.

Transactions in Foreign currency are recorded at the rate of exchange in force at the time transactions are effected and exchange difference, if any, on settlement of transaction is recognized in Profit & Loss Account. Monetary transactionbalance other than FCDL as on date of Balance Sheet have been reported at exchange rate on Balance Sheet date and difference charged to profit & loss account. Forward contract premium paid on forward contracts are amortized to Profit & loss account over life of such contract.

ii. Fair value measurement

The Company measures financial instruments such as Investments at fair value at the end of each reporting period.

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The fair value measurement is based on the presumption that the transaction to sell the asset or transfer the liability takes place either:

• In the principal market for the asset or liability Or

• In the absence of a principal market, in the most advantageousmarket for the asset or liability.

The principal or the most advantageous market must be accessible by the Company.

The fair value of an asset or a liability is measured using theassumptions that market participants would use when pricing theasset or liability, assuming that market participants act in theireconomic best interest.

A fair value measurement of a non-financial asset takes into account market participant''s ability to generate economic benefits by using the asset in its highest and best use or by selling it to another market participant that would use the asset in its highest and best use.

The Company uses valuation techniques that are appropriate in the circumstances and for which sufficient data are available to measurefair value, maximising the use of relevant observableinputsandminimising the use of unobservable inputs.

All assets and liabilities for which fair value is measured or disclosed in the financial statements are categorised within the fair value hierarchy, described as follows, based on the lowest level input that issignificant to the fair value measurement as a whole:

• Level 1 — Quoted (unadjusted) market prices in active markets for identical assets or liabilities.

• Level 2 — Valuation techniques for which the lowest level input that is significant to the fair value measurement is directly or indirectly observable.

• Level 3 — Valuation techniques for which the lowest level input that is significant to the fair value measurement is unobservable.

For assets and liabilities that are recognised in the financial statements on a recurring basis, the Company determines whether transfers have occurred between levels in the hierarchy by reassessing categorisation (based on the lowest level input that issignificant to the fair value measurement as a whole) at the end of each reporting period.

The Company''s Management determines the policies and procedures for both recurring fair value measurement, such as derivative instruments and for non-recurring measurement, such as asset held for sale.

External valuers are involved for valuation of significant assets, such as properties. Involvement of external valuers is decided upon annually by the management after discussion with and approval by the Company''s Audit Committee. Selection criteria include market knowledge, reputation, independence and whether professional standards are maintained. Management decides, after discussions with the Company''s external valuers, which valuation techniques and inputs to use for each case.

However, such fair value report is not available for all assets except equity investment as on 31^st March, 2023, Hence impairment Loss not booked for immovable properties.

At each reporting date, management analyses the movements in the values of assets and liabilities which are required to be re-measured or re-assessed as per the Company''s accounting policies. For this analysis, The Management verifies the major inputs applied in the latest valuation by agreeing the information in the valuation computation to contracts and other relevant documents.

The Management, in conjunction with the Company''s external valuers,also compares the change in the fair value of each asset and liability with relevant external sources to determine whether the change isreasonable on yearly basis.

For the purpose of fair value disclosures, the Company has determined classes of assets and liabilities on the basis of the nature,characteristics and risks of the asset or liability and the level of the fair value hierarchy, as explained above. This note summarises accounting policy for fair value. Other fair value related disclosures are given in the relevant notes.

• Significant accounting judgements, estimates and assumptions

• Quantitative disclosures of fair value measurement hierarchy

• Property, plant and equipment & Intangible assets measured atfair value on the date of transition

• Investment properties

• Financial instruments (including those carried at amortised cost)

iii. Property, plant and equipment

Property, plant and equipment are stated at cost, less accumulated depreciation and impairment, if any. Costs directly attributable to acquisition are capitalized until the property,plant and equipment are ready for use, as intended by the Management. The charge in respect of periodic depreciation is derived at after determining an estimate of an asset''s expected useful life and the expected residual value at the end of its life.

The Company depreciates property, plant and equipment over their estimated useful lives using the straight-line method.

Schedule II to the Act prescribes the useful lives for various class of assets. For certain class of assets, based on technical evaluation and assessment, Management believes that the useful lives adopted by it reflect the periods over which these assets are expected to be used. Accordingly for those assets, the useful lives estimated by the management are different from those prescribed in the Schedule. Management''s estimates of the useful lives for various class of PPE are as given below:

Assets	Useful Life
Building	0 -30 years
Plant & Machinery-Continue process	8 years
Plant & Machinery- Normal Process	15 years
Electric Installation	10 years
D. G. Set	10 years
Office Equipment	5 years
Furniture	10 years
Vehicle	8 years
Air Conditioner	10 years
Computers	3 years

Derecognition

An item of property, plant and equipment is derecognised upon disposal or when no future economic benefits are expected from its use or disposal. Any gain or loss arising on derecognition of the asset (calculated as the difference between the net disposal proceeds and the carrying amount of the asset) is included in the Statement of Profit and Loss when the asset is derecognised. However as stated above No Impairment loss is booked on 31^st March, 2023.

Depreciation

Depreciation on property, plant and equipment is provided so as to write off the cost of assets less residual values over their useful lives of the assets, using the straight line method as prescribed under PartC of Schedule II to the Companies Act 2013.

When parts of an item of property, plant and equipment have different useful life, they are accounted for as separate items (Major Components) and are depreciated over their useful life or over the remaining useful life of the principal assets whichever is less.

Depreciation for assets purchased/sold during a period is proportionately charged for the period of use, irrespective of actual operation and uses of the assets in question.

iv. Intangible Assets

Intangible assets acquired separately are measured on initial recognition at cost. Following initial recognition, Intangible assets are carried at cost less accumulated amortization and accumulated impairment losses, if any.

The useful lives of intangible assets are assessed as either finite orindefinite.

Intangible assets with finite lives are amortized over their useful economic lives and assessed for impairment whenever there is an indication that the intangible asset may be impaired. The amortization period and the amortization method for an intangible asset with a finite useful life are reviewed at least at the end of each reporting period. Changes in the expected useful life or the expectedpattern of consumption of future economic benefits embodied inthe assets are considered to modify the amortization period or method, as appropriate, and are treated as changes in accounting estimates. The amortization expense on intangible assets with finite lives is recognised in the Statement of Profit and Loss. Intangible assets with indefinite useful lives are not amortized, but are tested for impairment annually, either individually or at the cash generating unit level. The assessment of indefinite life is reviewed annually to determine whether the indefinite life continues to be supportable. If not, the change in useful life from indefinite to finite is made on a prospective basis.

Gains or losses arising from derecognition of an intangible asset are measured as the difference between the net disposal proceeds and the carrying amount of the asset and are recognised in the Statementof Profit and Loss when the asset is derecognised.

Amortisation

Software is amortized over management estimate of its useful life of 3 years.

Impairment of non-financial assets

The Company assesses at each reporting date whether there is an indication that an asset may be impaired. If any indication exists, the Company estimates the asset''s recoverable amount. An asset''s recoverable amount is the higher of an asset''s or cash generating unit''s (CGU) net selling price and its value in use. The recoverable amount is determined for an individual asset, unless the asset does not generate cash inflows that are largely independent of those from other assets or groups of assets. Where the carrying amount of an asset or CGU exceeds its recoverable amount, the asset is considered impaired and is to its recoverable amount.

In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset. In determining net selling price, recent market transactions are taken into account, if available. If no such transactions can be identified, an appropriate valuation model is used.

v. Inventories

Inventories of Raw material, Work-in-progress, finished goods and Stock-in-trade are valued at the lower of cost and net realizable value.However, Raw material and other items held for use in the production of inventories are not written down below cost if the finished products in which they will be incorporated are expected to be sold at or above cost.

Costs incurred in bringing each product to its present location andconditions are accounted for as follows:

• Raw materials: cost includes cost of purchase and other costs incurred in bringing the inventories to their present location and condition. Cost is determined on first in, first out basis.

• Finished goods and work in progress: cost includes cost of direct materials and Labours and a proportion of manufacturing overheads based on the normal operating capacity, but excluding borrowing costs. Cost is determined on first in, first out basis.

• Traded goods: cost includes cost of purchase and other costs incurred in bringing the inventories to their present location and condition. Cost is determined on weighted average basis.

All other inventories of stores, consumables, project material at site are valued at cost or NRV whichever is low. The stock of waste is valued at net realisable value.

Net realisable value is the estimated selling price in the ordinary course of business, less estimated costs of completion and the estimated costs necessary to make the sale.

vi. Revenue Recognition:

a) Sale of Goods

Revenue is recognised upon transfer of control of promised goods to customers in an amount that reflects the consideration which the Company expects to receive in exchange for those goods.

Revenue from the sale of goods is recognised at the point in time when control is transferred to the customer which is usually on dispatch / delivery of goods, based on contracts with the customers.

Revenue towards satisfaction of performance obligation is measured based on the transaction price, which is the consideration, adjusted for volume discounts, price concessions, incentives, and returns, if any, as specified

in the contracts with the customers. Revenue excludes taxes collected from customers on behalf of the government. Accruals for discounts/incentives and returns are estimated (using the most likely method) based on accumulated experience and underlying schemes and agreements with customers. Due to the short nature of credit period given to customers, there is no financing component in the contract.

The Company does not expect to have any contracts where the period between the transfer of the promised goods or services to the customer and payment by the customer exceeds one year. As a consequence, it does not adjust any of the transaction prices for the time value of money.

Revenue from the sale of goods is measured at the fair value of the consideration received or receivable including net of returns and allowances, tradediscounts, volume rebates and GST.

b) Interest income

Interest is recognized on a time proportion basis taking into account the amount outstanding and the applicable interest rate.

c) Dividend

Dividend Income is recognised when the Company''s right to receive established which is generally occur when the shareholders approve the dividend.

vii. Taxes on Income

Tax expense comprises of current income tax and deferred tax.

Current income tax

Current income tax assets and liabilities are measured at the amount expected to be recovered from or paid to the taxation authorities.

The tax rates and tax laws used to compute the amount are those that are enacted or substantively enacted, at the reporting date.

Current income tax relating to items recognised outside the statement of Profit and Loss is recognised outside the statement of Profit and Loss (either in other comprehensive income or in equity). Deferred tax items are recognised in correlation to the underlying transaction either in OCI or directly in equity.

Management periodically evaluates positions taken in the tax returns with respect to situations in which applicable tax regulations are subject to interpretation and establishes provision where appropriate.

Deferred income tax

Deferred income tax is provided using the liability method on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts for financial reporting purpose at the reporting date.

Deferred tax liabilities are recognized for all taxable temporary differences, except.

- When the Deferred tax liability arises from the initial recognition of goodwill or an asset or liability in a transaction other than a business combination that at the time of the transaction affects neither accounting profit nor taxable profit or loss;

- In respect of taxable temporary differences associated with investments in subsidiaries, when the timing of the reversal of the temporary differences can be controlled and it is probable that the differences will not reverse in the foreseeable future.

Deferred tax assets are recognized for all deductible temporary differences, the carry forward of unused tax credits and any unused tax losses. Deferred tax assets are recognized to the extent it is probable that future taxable amounts will be available against the deductible temporary differences and the carry forward of unused tax credits and unused tax losses can be utilised except:

- When the deferred tax asset arises relating to the deductible temporary difference arises from the initial recognition of an asset or liability in a transaction other than a business combination that at the time of the transaction affects neither accounting profit nor taxable profit or loss.

- In respect of deductible temporary differences associated with investments in subsidiaries, associates and interests in joint arrangements, deferred tax assets are recognised only to the extent that it is probable that the temporary differences will reverse in the foreseeable future and taxable profit will be available against which the temporary differences can be utilised.

The carrying amount of deferred tax assets is reviewed at each reporting date and reduced to the extent that it is no longer probable that sufficient taxable profit will be available to allow all or part of the deferred tax assets is to be utilised. Unrecognized deferred tax assets are re-assessed at each reporting date and are recognised to the extent that it has become probable that future taxable profits will allow the deferred tax asset to be recovered.

Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the year when the asset is realised or the liability is settled, based on tax rates (and tax laws) that have been enacted or substantively enacted at the reporting date.

Deferred tax relating to items recognised outside the statement of Profit and Loss is recognised outside the statement of Profit and Loss. Deferred tax items are recognised in correlation to the underlying transaction either in other comprehensive income or directly in equity.

Deferred tax assets and deferred tax liabilities are offset if a legally enforceable right exists to set off current tax assets against current tax liabilities and the deferred taxes relate to the same taxable entity and the same taxation authority.

viii. Employee benefits Short-term obligations

Liabilities for wages and salaries, including non-monetary benefits that are expected to be settled wholly within 12months after the end of the period in which the employees render the related service are recognized 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. The liabilities are presented as current employee benefit obligations in the balance sheet

Other long-term employee benefit obligations

The liabilities for earned leave and sick leave are not expected to be settled wholly within 12 months after the end of the period in which the employees render the related service. They are therefore 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 on government bonds using the projected unit credit method. The benefits are discounted using the market yields 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 profit or loss.

The obligations are presented as current liabilities in the balance sheet if the Company does not have an unconditional right to defer settlement for at least twelve months after the reporting period, regardless of when the actual settlement is expected to occur.

Post-employment obligations

The Company operates the following post-employment schemes:

a) defined benefit plans such as gratuity and

b) defined contribution plans such as provident fund.

Defined benefit plan

The liability or asset recognised in the balance sheet in respect of defined benefit 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 cashout flows 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.

Changes in the present value of the defined benefit obligation resulting from plan amendments or curtailments are recognised immediately in profit or loss as past service cost.

Defined contribution plans

The Company pays provident fund contributions to publicly administered provident funds as per local regulations. The Company has no further payment obligations once the contributions have been paid. The contributions are accounted for as defined contribution plans and the contributions are recognised as employee benefit expense when they are due. Prepaid contributions are recognised as an asset to the extent that a cash refund or a reduction in the future payments is available.

ix. Export incentives

Export incentives under various schemes notified by government are accounted for, in the year of exports based on eligibility and whenthere is no uncertainty in receiving the same.

x. Investment and other Financial Assets

Financial assets are recognized and measured in accordance with Ind AS 109 - Financial Instruments. Accordingly, the company recognizes financial asset only when it has contractual right to receive cash or other financial assets from another Company.

a. Initial recognition and measurement

All financial assets, except investment in subsidiary are measured initially at fair value plus, transaction costs that are attributable to the acquisition of the financial asset. The transaction cost incurred for the purchase of financial assets held at fair value through profit or loss is expended in the statement of Profit and Loss immediately.

b. Subsequent measurement

For the purpose of Subsequent measurement financial assets are classified in three categories:

- Measured at amortised cost

- Measured at fair value through other comprehensive income (FVOCI)

- Measured at fair value through Profit and Loss (FVTPL)

xi. Debt instruments at amortised cost

Assets that are held for collection of contractual cash flows where those cash flows represent solely payments of principal and interest are measured at amortised cost. Financial assets are accounted for at amortized cost using the effective interest method. This category comprises trade accounts receivable, loans, cash and cash equivalents, bank balances and other financial assets. A gain or loss on a debt instrument that is subsequently measured at amortized cost and is not part of a hedging relationship that is recognized in the Statement of Profit and Loss when the asset is derecognized or impaired. Interest income from these financial assets is included in finance income using the effective interest rate method.

Debt instruments at fair value through other comprehensive income (FVOCI)

Assets that are held for collection of contractual cash flows and for selling the financial assets, where the assets'' cash flows represent solely payments of principal and interest, are measured at fair value through Other Comprehensive Income (FVOCI).

The movement in carrying amount are taken through Other Comprehensive Income, except for the recognition of impairment gains or losses, interest revenue and foreign exchange gains and losses which are recognized in the Statement of Profit and Loss. When the financial asset is derecognized, the cumulative gain or loss previously recognized in Other Comprehensive Income is reclassified from equity to the Statement of Profit and Loss and recognized in other gains/ (losses). Interest income from these financial assets is included in finance income using the effective interest rate method.

Debt instruments at fair value through Profit and Loss (FVTPL)

FVTPL is a residual category for debt instruments. Any debt instrument, which does not meet the criteria for categorisation at amortized cost or s FVTOCI, is classified as at FVTPL. Debt instruments included within the FVTPL category are measured at fair value with all changes recognised in the Statement of Profit and Loss.

xii. Equity Investments:

All equity investments, except in subsidiary are measured at cost in scope of Ind AS 109 are measured at fair value. For all other equity instruments, the company may make an irrevocable election to present in other comprehensive income subsequent changes in the fair value. The company makes such election on an instrument-by-instrument basis. The classification is made on initial recognition and is irrevocable.

If the company decides to classify an equity instruments as a FVTOCI, then all fair value changes on the instrument, excluding dividends, are recognized in other comprehensive income (OCI). There is no recycling of the amounts from OCI to Statement of Profit and Loss, even on sale of Investment. However, the company may transfer the cumulative gain or loss within equity.

Equity instruments included within the FVTPL category are measured at fair value with all changes recognised in the Statement of Profit and Loss.

Derecognition

A financial asset (or, where applicable, a part of financial asset or part of a group of similar financial assets) is primarily derecognised (i.e. removed from the company''s Balance sheet) when:

- The rights to receive cash flows from the asset have expired, or

- The company has transferred substantially all the risks and rewards of the asset

Investments in shares are stated at market value as on date of Balance Sheet and M to M gain / loss is shown in profit and loss account.

xiii. Borrowing cost

Borrowing costs directly attributable to the acquisition, construction or production of an asset that necessarily takes a substantial period of time to get ready for its intended use or sale are capitalized as part of the cost of the respective asset. All other borrowing costs areexpensed in the period in which they occur. Borrowing costs consistof interest and other costs that the Company incurs in connection with the borrowing of funds. Borrowing cost also includes exchange differences to the extent regarded as an adjustment to the borrowing costs.

xiv. Provisions, contingent liabilities and contingent assets

Provisions are recognized when the Company has a present obligation (legal or constructive)as a result of a past event, it is probable that an outflow of resources embodying economic benefit will be required to settle the obligation and a reliable estimate can be made of the amount of the obligationThese are reviewed at each Balance Sheet date and adjusted to reflect the current best estimates. Contingent liabilities are not recognized but are disclosed in the notes. Contingent assets are neither recognised nor disclosed in the financial statements

xv. Related Party Transactions:

Disclosure of transactions with Related Parties, as required by Ind AS 24 "Related Party Disclosures" has been set out in a separate statement annexed to this Schedule as per Note No. 37 Related Parties as defined in Ind AS 24 have been identified on the basis of representations made by key managerial personnel and information available with the Company.

xvi. Provisions:

A provision is recognized when Company has a legal and constructive obligation as a result of a past event, for which it is probable that cash outflow will be required and a reliable estimate has been made of the amount of the obligation. Accordingly, provision for income tax payable has not been done. MAT credit of '' Nil (PY. '' Nil) lakhs and unabsorbed depreciation of '' 333.89 (PY.'' 465.86) lakhs have been ignored for the purpose of DTA provision.

xvii. Classification of Subsidy Receivable into Current and Non-Current Asset:

(a) The Company has received eligibility certificate from concerned department regarding VAT concession for amount of Subsidy of '' 3066.38 Lakhs for 8 years in equal installments. The VAT Concession is for the period of 8 years from 01-012014 to 31-01-2021. Amount under Subsidy receivable is treated as Non -Current Assets. The status of subsidy amount as per certificate received from concerned authorities is as under.

Particulars	Details	Amount
Period (8 Years)	01.01.2014 to 31.12.21	8 years
Entitlement Certificate No.-Commercial Tax Department issued on 16.06.16	GUJ TIS 160616 000199
Eligibility Certificate No. - DIC issued on 19.10.15	IC\Salt-Tex\147\1121480
Total Certificate Amount and per year income to be Booked	Total '' 3,066.38 lakhs	'' 383.30 lakhs
Nos ofYears for which income has been Booked till 2018-19		5 years
Income Booked- Till 2018-19		'' 1,916.50 lakhs
Income Received / Expenses Booked		'' 1197.66 lakhs
Eligible Amount to be Claimed for reimbursement/refund from respected authorities		'' 0.00 lakhs
(Subject to filing of claim and its approval from concerned authorities.) (Shown under Current Assets)		Nil
Other Non- Current Assets ( Balance Amount)		'' 718.84 lakhs

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Mar 31, 2018

Significant Accounting Policies

A. Compliance with Ind AS:

The financial statements have been prepared in accordance with Indian Accounting Standards (Ind AS) as issued under the Companies (Indian Accounting Standards) Rule, 2015.

For all the periods up to and including the year ended March 31, 2017, the Company prepared its Financial Statements in accordance with Accounting Standards issued by the Institute of Chartered Accountants of India and the provisions of the Companies Act, 2013. These Financial Statements for the year ended March 31, 2018 are the first financial statements that the Company has prepared in accordance with Ind AS. During the year the Company has not revalued its borrowings and preference shares as per Ind As and also not amortised interest on the same as per Ind AS.

B. Basis for Preparation of Accounts:

The financial statements have been prepared under the historical cost convention, except Investments which are measured at fair value. All income and expenditure having a material bearing on the financial statements are recognized on accrual basis.The preparation of financial statements requires estimates and assumption to be made that effect the reported amount of assets and liabilities and revenue and expenditures during the reporting periods. Difference between actual results and estimates are recognized in the period in which they are known/ materialized.

C. Summary of Significant Accounting Policies:

The following are the significant accounting policies applied by the Company in preparing its financial statements consistently to all the periods presented, including the preparation of the opening Ind AS Balance Sheet as at April 1, 2016 being the date of transition to Ind AS.

i. Current verses non-current classification

The Company presents assets and liabilities in the Balance Sheet based on current/non-current _classification._

An asset is current when it is:

- Expected to be realised or intends to be sold or consumed in the normal operating cycle;

- Help primarily for the purpose of trading;

- Expected to be realised within twelve months after the reporting period; or

- Cash and cash equivalent unless restricted from being exchanged or used to settle a liability for at least twelve months after the reporting period.

All other assets are classified as non-current.

A liability is current when:

- It is expected to be settled in the normal operating cycle;

- It is held primarily for the purpose of trading;

- It is due to be settled within twelve months after the reporting period; or

- There is no unconditional right to defer the settlement of the liability for at least twelve months after the reporting period.

The Company classifies all other liabilities as non-current.

Deferred tax assets and liabilities are classified as non-current assets and liabilities

Operating cycle

Operating cycle of the Company is the time between the acquisition of assets for processing and their realization in cash or cash equivalents. As the Company’s normal operating cycle is not clearly identifiable, it is assumed to be twelve months.

ii. Use of estimates and judgements

The estimates and judgments used in the preparation of the financial statements are continuously evaluated by the Company and are based on historical experience and various other assumption and factors (including expectations of future events) that the Company believes to be reasonable under the existing circumstances. Difference between actual results estimates are recognized in the period in which the result is known/materialized. Due to non-availability of GSTR-2A and 3B as on 31^st March 2018, GST credit in books has not been reconciled with GST credit available on GST portal.

iii. Foreign Currency Transactions:

The Company’s financial statements are presented in INR, which is also the Company’s functional and presentation currency.

Transactions in Foreign currency are recorded at the rate of exchange in force at the time transactions are effected and exchange difference, if any, on settlement of transaction is recognized in Profit & Loss Account. Monetary transaction balance other than FCDL as on date of Balance Sheet have been reported at exchange rate on Balance Sheet date and difference charged to profit & loss account. Forward contract premium paid on forward contracts are amortized to Profit & loss account over life of such contract.

iv. Fair value measurement

The Company measures financial instruments such as Investments at fair value at the end of each reporting period.

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The fair value measurement is based on the presumption that the transaction to sell the asset or transfer the liability takes place either:

- In the principal market for the asset or liability Or

- In the absence of a principal market, in the most advantageous market for the asset or liability. The principal or the most advantageous market must be accessible by the Company.

The fair value of an asset or a liability is measured using the assumptions that market participants would use when pricing the asset or liability, assuming that market participants act in their economic best interest.

A fair value measurement of a non-financial asset takes into account a market participant’s ability to generate economic benefits by using the asset in its highest and best use or by selling it to another market participant that would use the asset in its highest and best use.

The Company uses valuation techniques that are appropriate in the circumstances and for which sufficient data are available to measure fair value, maximising the use of relevant observable inputs and minimising the use of unobservable inputs.

All assets and liabilities for which fair value is measured or disclosed in the financial statements are categorised within the fair value hierarchy, described as follows, based on the lowest level input that is significant to the fair value measurement as a whole:

- Level 1 — Quoted (unadjusted) market prices in active markets for identical assets or liabilities.

- Level 2 — Valuation techniques for which the lowest level input that is significant to the fair value measurement is directly or indirectly observable.

- Level 3 — Valuation techniques for which the lowest level input that is significant to the fair value measurement is unobservable.

For assets and liabilities that are recognised in the financial statements on a recurring basis, the Company determines whether transfers have occurred between levels in the hierarchy by reassessing categorisation (based on the lowest level input that is significant to the fair value measurement as a whole) at the end of each reporting period.

The Company’s management determines the policies and procedures for both recurring fair value measurement, such as derivative instruments and for non-recurring measurement, such as asset held for sale.

External valuers are involved for valuation of significant assets, such as properties. Involvement of external valuers is decided upon annually by the management after discussion with and approval by the Company’s Audit Committee. Selection criteria include market knowledge, reputation, independence and whether professional standards are maintained. Management decides, after discussions with the Company’s external valuers, which valuation techniques and inputs to use for each case.

At each reporting date, management analyses the movements in the values of assets and liabilities which are required to be re-measured or re-assessed as per the Company’s accounting policies. For this analysis, management verifies the major inputs applied in the latest valuation by agreeing the information in the valuation computation to contracts and other relevant documents. Management, in conjunction with the Company’s external valuers, also compares the change in the fair value of each asset and liability with relevant external sources to determine whether the change is reasonable on yearly basis.

For the purpose of fair value disclosures, the Company has determined classes of assets and liabilities on the basis of the nature, characteristics and risks of the asset or liability and the level of the fair value hierarchy, as explained above. This note summarises accounting policy for fair value. Other fair value related disclosures are given in the relevant notes.

- Significant accounting judgements, estimates and assumptions

- Quantitative disclosures of fair value measurement hierarchy

- Property, plant and equipment & Intangible assets measured at fair value on the date of transition

- Investment properties

- Financial instruments (including those carried at amortised cost)

v. Property, plant and equipment

Property, plant and equipment is stated at cost, net of accumulated depreciation and accumulated impairment losses, if any. Such cost includes the cost of replacing part of the plant and equipment and borrowing costs for long-term construction projects if the recognition criteria are met. When significant parts of Property, plant and equipment are required to be replaced at intervals, the Company recognises such parts as individual assets with specific useful lives and depreciates them accordingly. Likewise, when a major inspection is performed, its cost is recognised in the carrying amount of the plant and equipment as a replacement if the recognition criteria are satisfied. All other repair and maintenance costs are recognised in profit or loss as incurred. The present value of the expected cost for the decommissioning of an asset after its use is included in the cost of the respective asset if the recognition criteria for a provision are met.

Derecognition

An item of property, plant and equipment is derecognised upon disposal or when no future economic benefits are expected from its use or disposal. Any gain or loss arising on derecognition of the asset (calculated as the difference between the net disposal proceeds and the carrying amount of the asset) is included in the Statement of Profit and Loss when the asset is derecognised. Depreciation

Depreciation on property, plant and equipment is provided so as to write off the cost of assets less residual values over their useful lives of the assets, using the straight line method as prescribed under Part C of Schedule II to the Companies Act 2013.

When parts of an item of property, plant and equipment have different useful life, they are accounted for as separate items (Major Components) and are depreciated over their useful life or over the remaining useful life of the principal assets whichever is less.

Depreciation for assets purchased/sold during a period is proportionately charged for the period of use.

vi. Borrowing cost

Borrowing costs directly attributable to the acquisition, construction or production of an asset that necessarily takes a substantial period of time to get ready for its intended use or sale are capitalised as part of the cost of the respective asset. All other borrowing costs are expensed in the period in which they occur. Borrowing costs consist of interest and other costs that the Company incurs in connection with the borrowing of funds. Borrowing cost also includes exchange differences to the extent regarded as an adjustment to the borrowing costs.

vii. Intangible Assets

Intangible assets acquired separately are measured on initial recognition at cost. Following initial recognition, Intangible assets are carried at cost less accumulated amortisation and accumulated impairment losses, if any.

The useful lives of intangible assets are assessed as either finite or indefinite.

Intangible assets with finite lives are amortised over their useful economic lives and assessed for impairment whenever there is an indication that the intangible asset may be impaired. The amortisation period and the amortisation method for an intangible asset with a finite useful life are reviewed at least at the end of each reporting period. Changes in the expected useful life or the expected pattern of consumption of future economic benefits embodied in the assets are considered to modify the amortisation period or method, as appropriate, and are treated as changes in accounting estimates. The amortisation expense on intangible assets with finite lives is recognised in the Statement of Profit and Loss. Intangible assets with indefinite useful lives are not amortised, but are tested for impairment annually, either individually or at the cashgenerating unit level. The assessment of indefinite life is reviewed annually to determine whether the indefinite life continues to be supportable. If not, the change in useful life from indefinite to finite is made on a prospective basis.

Gains or losses arising from derecognition of an intangible asset are measured as the difference between the net disposal proceeds and the carrying amount of the asset and are recognised in the Statement of Profit and Loss when the asset is derecognised.

Amortisation

Software is amortized over management estimate of its useful life of 3 years.

ix. Inventories

Inventories of Raw material, Work-in-progress, Finished goods and Stock-in-trade are valued at the lower of cost and net realisable value. However, Raw material and other items held for use in the production of inventories are not written down below cost if the finished products in which they will be incorporated are expected to be sold at or above cost.

Costs incurred in bringing each product to its present location and conditions are accounted for as follows:

- Raw materials: cost includes cost of purchase and other costs incurred in bringing the inventories to their present location and condition. Cost is determined on first in, first out basis.

- Finished goods and work in progress: cost includes cost of direct materials and labour and a proportion of manufacturing overheads based on the normal operating capacity, but excluding borrowing costs. Cost is determined on first in, first out basis.

- Traded goods: cost includes cost of purchase and other costs incurred in bringing the inventories to their present location and condition. Cost is determined on weighted average basis.

All other inventories of stores, consumables, project material at site are valued at cost. The stock of waste is valued at net realisable value.

Excise duty wherever applicable is provided on finished goods lying within the factory and bonded warehouse at the end of the year.

Net realisable value is the estimated selling price in the ordinary course of business, less estimated costs of completion and the estimated costs necessary to make the sale.

x. Revenue Recognition:

Sale of Goods

Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer, which generally coincides with dispatch. Revenue from export sales are recognized on shipment basis. Revenue from the sale of goods is measured at the fair value of the consideration received or receivable including excise duty, net of returns and allowances, trade discounts, volume rebates and GST.

Interest income

Interest is recognized on a time proportion basis taking into account the amount outstanding and the applicable interest rate.

Dividend

Dividend Income is recognised when the Company’s right to receive is established which is generally occur when the shareholders approve the dividend.

xi. Cash and cash equivalent

Cash and cash equivalent in the balance sheet comprise cash at banks and on hand and shortterm deposits with a maturity of three months or less, which are subject to an insignificant risk of changes in value. For the purpose of the statement of cash flows, cash and cash equivalents consist of cash and short-term deposits, as defined above.

xii. Export incentives

Export incentives under various schemes notified by government are accounted for in the year of exports based on eligibility and when there is no uncertainty in receiving the same.

xiii. Investments:

Investments in shares and mutual fund are stated at market value as on date of Balance Sheet and Mark to Mark gain / loss is shown in profit and loss account.

xiv. Retirement benefits:

(i) The Company’s contribution to provident fund is charged to Profit and Loss Account.

(ii) Leave encashment is paid on annual basis every year and charged to Profit & Loss Account.

(iii) Provision for Gratuity has been made on the basis of management estimate only and not on the basis of professional actuarial valuation report. In the absence of the acturial valuation, the following details are not provided in the financial statements:

a. Bifurcation of provision for gratuity into current and non-current

b. Quantum of short provision of gratuity and its impact on the Statement of Profit and Loss for the period ended March 31, 2018.

xv. Related Party Transactions:

Disclosure of transactions with Related Parties, as required by Ind AS 24 “Related Party Disclosures” has been set out in a separate statement annexed to this Schedule. Related Parties as defined in Ind AS 24 have been identified on the basis of representations made by key managerial personnel and information available with the Company.

xvi. Taxes on Income:

Provision for current taxes made on the basis of estimated taxable income at the rate applicable to the relevant assessment year.

Tax expense comprises current tax (i.e. amount of tax for the year determined in accordance with the income-tax law) and deferred tax charge or credit (reflecting the tax effects of timing differences between accounting income and taxable income for the year).

The deferred tax charge or credit and the corresponding deferred tax liabilities or assets are recognized using the tax rates that have been enacted or substantively enacted by the balance sheet date. Deferred tax assets are recognized only to the extent there is reasonable certainty that the assets can be realized in future, however when there is unabsorbed depreciation or carry forward loss under taxation laws, deferred tax assets are recognized only if there is a virtual certainty of realization of such assets.

Deferred tax assets are reviewed as at each balance sheet date and written down or written-up to reflect the amount that is reasonable / virtually certain (as the case may be) to be realized.

xvii. Provisions:

A provision is recognized when Company has a legal and constructive obligation as a result of a past event, for which it is probable that cash outflow will be required and a reliable estimate has been made of the amount of the obligation. During the year the Company has received Dividend Income on mutual fund, and as per management estimate, no MAT or regular tax is payable by the Company. Accordingly, provision for income tax payable has not been done. MAT credit of Rs. 27.21 lakhs and unabsorbed depreciation of Rs. 1527.09 lakhs have been ignored for the purpose of DTA provision. Rs. 125.56 lakhs of advance license / MEIS benefits against exports sales is due to the company during F.Y. 2017-18 and raw material consumption cost has been reduced accordingly.

xviii. Classification of Subsidy Receivable into Current and Non-Current Asset:

The Company has received eligibility certificate from concern department regarding VAT concession for amount of Subsidy of Rs. 3066.38 Lakhs for 8 years in equal installments. The VAT Concession is for the period of 8 years from 01-01-2014 to 31-01-2021. The status of subsidy amount as per certificate received from concerned authorities is as under.

xix. Closure of operation:

The Company has closed its operation at Dantali Unit in Dantali, Gandhingar in 2017-18. All fixed assets are transferred at book value to Santej unit. Remaining assets and liabilities will be settled in books of Dantali only.

xx. Previous year figures have been regrouped and rearranged, wherever necessary, to make them comparable with the current year figures.

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Mar 31, 2016

1. Significant Accounting Policies

A. Basis for Preparation of Accounts:

The financial statements have been prepared under the historical cost convention, in accordance with Accounting Standards issued by the Institute of Chartered Accountants of India and the provisions of the Companies Act, 2013, as adopted consistently by the company. All income and expenditure having a material bearing on the financial statements are recognized on accrual basis.

B. Revenue Recognition:

Sales are recognized when goods are supplied and recorded net of excise duty on goods manufactured but includes job work income.

C. Fixed Assets & Depreciation:

Fixed Assets are capitalized at cost inclusive of Inward Freight, Taxes (CST), Installation expenses and allocable preoperative expenses. Depreciation has been provided on Straight Line Method, at the rates and as per life specified under schedule II of the Companies Act, 2013. No depreciation is provided on assets that have already been depreciated to the extent of 95% of their original value. Life of intangible assets [Software] has been adopted as 3 years.

D. Investments:

Investments are stated at market value as on date of Balance Sheet.

E. Inventories:

Raw material, consumables & Finished Goods are valued at Cost (Including Excise & VAT) including expenses incurred in bringing the inventories to its present location and condition or net realizable value, whichever is lower. Upto last year, i.e. F Y 2014-15, the company was valuing the closing stock net of Excise & VAT, however, as the company is required to comply with the provision of ICDS [Income Computation and Disclosure Standards] for better presentation , the method of valuation has been changed to the effect that all creditable duties on purchase like Excise and VAT are included in valuation of closing stock due to which Inventory Value has been increased by Rs. 3,17,61,997/- as compared to the old method.

F. Retirement benefits:

(i) The Company’s contribution to provident fund is charged to Profit and Loss Account.

(ii) Leave encashment is paid on annual basis every year and charged to Profit & Loss Account.

(iii) Provision for Accrued Gratuity has been made on the basis of in house estimate only and not on the basis of professional actuarial valuation report.

G. Foreign Currency Transactions:

Transactions in Foreign currency are recorded at the rate of exchange in force at the time transactions are effected and exchange difference, if any, on settlement of transaction is recognized in Profit & Loss Account. Monetary transaction balance as on date of Balance Sheet have been reported at exchange rate on Balance Sheet date and difference charged to profit & loss account. Forward contract premium paid on forward contracts are charged to Profit & loss account over life of such contract.

H. Contingent Liability:

A disclosure for a contingent liability is made when there is a possible obligation as a result of past event, existence of which will be confirmed only by occurrence or non occurrence of a future event, which is not wholly within the control of the company. The detailed breakup of contingent liabilities has been set out in a separate statement annexed to this Schedule.

I. Borrowing Costs:

Borrowing costs that are attributable to the acquisition or construction of qualifying assets and are capitalized as part of the cost of such assets. A qualifying asset is one that necessarily takes substantial period of time to get ready for intended use. All other borrowing costs are charged to revenue.

J. Related Party Transactions:

Disclosure of transactions with Related Parties, as required by Accounting Standard 18 “Related Party Disclosures” has been set out in a separate statement annexed to this Schedule. Related Parties as defined under clause 3 of the Accounting Standard have been identified on the basis of representations made by key managerial personnel and information available with the Company.

K. Taxes on Income:

Tax expense comprises current tax (i.e. amount of tax for the year determined in accordance with the income-tax law) and deferred tax charge or credit (reflecting the tax effects of timing differences between accounting income and taxable income for the year).

The deferred tax charge or credit and the corresponding deferred tax liabilities or assets are recognized using the tax rates that have been enacted or substantively enacted by the balance sheet date. Deferred tax assets are recognized only to the extent there is reasonable certainty that the assets can be realized in future, however when there is unabsorbed depreciation or carry forward loss under taxation laws, deferred tax assets are recognized only if there is a virtual certainty of realization of such assets.

Deferred tax assets are reviewed as at each balance sheet date and written down or written-up to reflect the amount that is reasonable / virtually certain (as the case may be) to be realized.

In view of the brought forward losses, no provision for income tax has been made.

L. Provisions:

A provision is recognized when company has a legal and constructive obligation as a result of a past event, for which it is probable that cash outflow will be required and a reliable estimate has been made of the amount of the obligation.

M. Subsidy :

The Company has received eligible certificate from concern department regarding VAT concession for amount Rs. 3066.38 Lacs for 8 years in equal installments. The VAT Concession for the period of 8 years which starts from 01-01-2014 to 31-01-2021. The Company had booked income of Rs 3,36,60,142/- in 2014-15 and difference amount of Rs 46,69,608/- along with current year portion of subsidy amount Rs 3,83,29,750/- has been booked as income in financial year 2015-16. hence total amount of Rs. 4,29,99,358/- booked as operating income during the year. During the year the company has booked as interest subsidy income by way of reducing its interest on term loan expenses for Rs. 12,69,124/- for term loan-1 central government, 98,82,429/- for term loan-2 central government, 1,73,02,617/- for term loan-2 Gujarat Government.

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Mar 31, 2015

A. Basis for Preparation of Accounts:

The financial statements have been prepared under the historical cost convention, in accordance with Accounting Standards issued by the Institute of Chartered Accountants of India and the provisions of the Companies Act, 2013, as adopted consistently by the company. All income and expenditure having a material bearing on the financial statements are recognized on accrual basis.

B. Revenue Recognition:

Sales are recognized when goods are supplied and recorded net of excise duty on goods manufactured but includes job work income.

C. Fixed Assets & Depreciation:

Fixed Assets are capitalised at cost inclusive of Inward Freight, Taxes (CST), Installation expenses and allocable preoperative expenses. During the year, the company has calculated depreciation as per revised schedule II of Companies Act, 2013. Rs. 1386329/- , the amount of carrying amount of assets, the life of which is already over as per schedule II of Companies Act,2013 has been recognised opening balance of retained earnings and current year depreciation has been increased by Rs. 38,13,956/- as compared to erstwhile provision as per schedule XIV of Companies Act, 1956. Depreciation has been provided on Straight Line Method, at the rates and as per life specified under schedule II of the Companies Act, 2013. No depreciation is provided on assets that have already been depreciated to the extent of 95% of their original value. Life of intangible assets [Software] has been adopted as 3 years.

D. Investments:

Investments are stated at market value as on date of Balance Sheet.

E. Inventories:

Raw material, consumables & Finished Goods are valued at Cost (net of Excise & VAT) including expenses incurred in bringing the inventories to its present location and condition or net realizable value, whichever is lower.

F. Retirement benefits:

(i) The Company's contribution to provident fund is charged to Profit and Loss Account.

(ii) Leave encashment is paid on annual basis every year and charged to Profit & Loss Account.

(iii) Provision for Accrued Gratuity has been made on the basis of in house estimate only and not on the basis of professional actuarial valuation report.

G. Foreign Currency Transactions:

Transactions in Foreign currency are recorded at the rate of exchange in force at the time transactions are effected and exchange difference, if any, on settlement of transaction is recognised in Profit & Loss Account. Monetary transaction balance as on date of Balance Sheet have been reported at exchange rate on Balance Sheet date and difference charged to profit & loss account.

H. Contingent Liability:

A disclosure for a contingent liability is made when there is a possible obligation as a result of past event, existence of which will be confirmed only by occurrence or non occurrence of a future event, which is not wholly within the control of the enterprise.

I. Borrowing Costs:

Borrowing costs that are attributable to the acquisition or construction of qualifying assets are capitalized as part of the cost of such assets. A qualifying asset is one that necessarily takes substantial period of time to get ready for intended use. All other borrowing costs are charged to revenue.

J. Related Party Transactions:

Disclosure of transactions with Related Parties, as required by Accounting Standard 18 "Related Party Disclosures" has been set out in a separate statement annexed to this Schedule. Related Parties as defined under clause 3 of the Accounting Standard have been identified on the basis of representations made by key managerial personnel and information available with the Company.

K. Taxes on Income:

Tax expense comprises current tax (i.e. amount of tax for the year determined in accordance with the income- tax law) and deferred tax charge or credit (reflecting the tax effects of timing differences between accounting income and taxable income for the year).

The deferred tax charge or credit and the corresponding deferred tax liabilities or assets are recognized using the tax rates that have been enacted or substantively enacted by the balance sheet date. Deferred tax assets are recognized only to the extent there is reasonable certainty that the assets can be realized in future,

however when there is unabsorbed depreciation or carry forward loss under taxation laws, deferred tax assets are recognized only if there is a virtual certainty of realization of such assets.

Deferred tax assets are reviewed as at each balance sheet date and written down or written-up to reflect the amount that is reasonable / virtually certain (as the case may be) to be realized.

In view of the brought forward losses, no provision for income tax has been made.

GOPALA POLYPLAST LTD.

Calculation of DTA / DTL 2014-2015

DTA / (DTL)

Depreciation as per the Company's Act 5,67,15,095

Depreciation as per the I.T. Act 6,12,42,793

Amount Eligible for DTA / (DTL) as on 31.03.15 (45,27,698)

DTA / (DTL) Provision required for the year 2014-2015 (13,99,059)

L. Provisions:

A provision is recognized when company has a legal and constructive obligation as a result of a past event, for which it is probable that cash outflow will be required and a reliable estimate has been made of the amount of the obligation.

M. Subsidy :

The Company had started new project in F Y 2013-14 and completed during the curent year which was under TUF Scheme of central Government (5% Interest subsidy and 10% Capital Subsidy) as well as Gujarat Government 6% Interest Subsidy and Vat concession under eligible Fixed Capital investment in Plant and Machinery. The Company will receive equal yearly installment of eligible fixed capital investment in 8 years, on basis of VAT/CST payment made by Company in each year.

As per the scheme, the company had filed its interest and capital subsidy claim to central government and interest and eligible amount under scheme has been filed with Gujarat Government. The company has made provision for income under interest subsidy (Gujarat-of Rs.1,23,80,018/- [reduced from interest expense], Central Government of Rs.1,03,16,480/- [reduced from interest expense) & Plant and Machinery-Central Government Capital subsidy- Rs. 1,94,31,885/- [reduced from fixed assets], Subsidy receivable (Gujarat) - 3,36,60,142/- [booked as operating income] during the year.

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Mar 31, 2013

A. Basis for Preparation of Accounts:

The financial statements have been prepared under the historical cost convention, in accordance with Accounting Standards issued by the Institute of Chartered Accountants of India and the provisions of the Companies Act, 1956, as adopted consistently by the company. All income and expenditure having a material bearing on the financial statements are recognized on accrual basis.

B. Revenue Recognition:

Sales are recognized when goods are supplied and recorded net of excise duty on goods manufactured but includes job work income.

C. Fixed Assets & Depreciation:

Fixed Assets are capitalised at cost inclusive of Inward Freight, Duties, Taxes, Installation expenses and allocable preoperative expenses. Depreciation has been provided on Straight Line Method, at the rates specified under schedule XIV to the Companies Act, 1956. No depreciation is provided on assets that have already been depreciated to the extent of 95% of their original value.

D. Investments:

Investments are stated at market value as on date of Balance Sheet.

E. Inventories:

Raw material, consumables & Finished Goods are valued at Cost (net of Excise & VAT) including expenses incurred in bringing the inventories to its present location and condition.

F. Retirement benefits:

(i) The Company''s contribution to provident fund is charged to Profit and Loss Account. (ii) Leave encashment is paid on annual basis every year and charged to Profit & Loss Account. (iii) Provision for Accrued Gratuity has been made on the basis of in house estimate only and not on the basis of professional actuarial valuation report.

G. Foreign Currency Transactions:

Transactions in Foreign currency are recorded at the rate of exchange in force at the time transactions are effected and exchange difference, if any, on settlement of transaction is recognised in Profit & Loss Account. Monetary transaction balance as on date of Balance Sheet have been reported at exchange rate on Balance Sheet date.

H. Contingent Liability:

A disclosure for a contingent liability is made when there is a possible obligation as a result of past event, existence of which will be confirmed only by occurrence or non occurrence of a future event, which is not wholly within the control of the enterprise.

I. Borrowing Costs:

Borrowing costs that are attributable to the acquisition or construction of qualifying assets are capitalized as part of the cost of such assets. A qualifying asset is one that necessarily takes substantial period of time to get ready for intended use. All other borrowing costs are charged to revenue.

J. Related Party Transactions:

Disclosure of transactions with Related Parties, as required by Accounting Standard 18 "Related Party Disclosures" has been set out in a separate statement annexed to this Schedule. Related Parties as defined under clause 3 of the Accounting Standard have been identified on the basis of representations made by key managerial personnel and information available with the Company.

K. Taxes on Income:

Tax expense comprises current tax (i.e. amount of tax for the year determined in accordance with the income-tax law) and deferred tax charge or credit (reflecting the tax effects of timing differences between accounting income and taxable income for the year).

The deferred tax charge or credit and the corresponding deferred tax liabilities or assets are recognized using the tax rates that have been enacted or substantively enacted by the balance sheet date. Deferred tax assets are recognized only to the extent there is reasonable certainty that the assets can be realized in future, however when there is unabsorbed depreciation or carry forward loss under taxation laws, deferred tax assets are recognized only if there is a virtual certainty of realization of such assets.

Deferred tax assets are reviewed as at each balance sheet date and written down or written-up to reflect the amount that is reasonable / virtually certain (as the case may be) to be realized.

In view of the brought forward losses, no provision for income tax has been made.

L. Provisions:

A provision is recognized when company has a legal and constructive obligation as a result of a past event, for which it is probable that cash outflow will be required and a reliable estimate has been made of the amount of the obligation.

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Mar 31, 2012

A. Basis for Preparation of Accounts:

The financial statements have been prepared under the historical cost convention, in accordance with Accounting Standards issued by the Institute of Chartered Accountants of India and the provisions of the Companies Act, 19!56, as adopted consistently by the company. All income and expenditure having a material bearing on the financial statements are recognized on accrual basis.

B. Revenue Recognition:

Sales are recognized when goods are supplied and recorded net of excise duty on goods manufactured but includes job work income. .

C. Fixed Assets & Depreciation:

Fixed Assets are capitalised at cost inclusive of Inward Freight, Duties, Taxes, Installation expenses and allocable preoperative expenses. Depreciation has been provided on Straight Line Method, at the rates specified under schedule XIV to the Companies Act, 1956. No depreciation is provided on assets that have already been depreciated to the extent of 95% of their original value.

D. Investments: ,

Investments are stated at market value as on date of Balance Sheet.

E. Inventories:

Raw material and consumables at Cost (net of Excise & VAT) including expenses incurred in bringing the inventories to its present location and condition.

The finished goods have been valued inclusive of Excise duty. '

F. Retirement benefits:

(i) The Company's contribution to provident fund is charged to Profit and Loss Account.

(ii) Leave encashment is paid on annual basis every year and charged to Profit & Loss Account.

(iii) Provision for Accrued Gratuity has been made on the basis of in house estimate only and not on the basis of professional actuarial valuation report.

G Foreign Currency Transactions:

Transactions in Foreign currency are recorded at the rate of exchange in force at the time transactions are effected and exchange difference, if any, on settlement of transaction is recognised in Profit & Loss Account. Monetary transaction balance as on date of Balance Sheet have been reported at exchange rate on Balance Sheet date.

H. Contingent Liability:

A disclosure for a contingent liability is made when there is a possible obligation as a result of past event, existence of which will be confirmed only by occurrence or non occurrence of a future event, which is not wholly within the control of the enterprise.

I. Borrowing Costs:

Borrowing costs that are attributable to the acquisition or construction of qualifying assets are capitalized as part of the cost of such assets. Aqualifying asset is one that necessarily takes substantial period of time to get ready for intended use. All other borrowing costs are charged to revenue.

J. Related Party Transactions:

Disclosure of transactions with Related Parties, as required by Accounting Standard 18 "Related Party Disclosures" has been set out in a separate statement annexed to this Schedule. Related Parties as defined under clause 3 of the Accounting Standard have been identified on the basis of representations made by key managerial personnel and information available with the Company.

K. Taxes on Income:

In view of the brought forward losses, no provision for income tax has been made.

L. Provisions:

A provision is recognized when company has a legal and constructive obligation as a result of a past event, for which it is probable that cash outflow will be required and a reliable estimate has been made of the amount of the obligation.

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Mar 31, 2010

A. Basis for Preparation of Accounts:

The financial statements have been prepared under the historical cost convention, in accordance with Accounting Standards issued by the Institute of Chartered Accountants of India and the provisions of the Companies Act, 1956, as adopted consistently by the company. All income and expenditure having a material bearing on the financial statements are recognized on accrual basis.

B. Revenue Recognition:

Sales are recognized when goods are supplied and recorded net of excise duty on goods manufactured but includes job work income.

C. Fixed Assets & Depreciation:

Fixed Assets are capitalised at cost inclusive of Inward Freight, Duties, Taxes, Installation expenses and allocable preoperative expenses. Depreciation has been provided on Straight Line Method, at the rates specified under schedule XIV to the Companies Act, 1956. No depreciation is provided on assets that have already been depreciated to the extent of 95% of their original value.

D. Investments:

Investments are stated at cost.

E. Inventories:

Raw material and consumables at Cost (net of Excise & VAT) including expenses incurred in bringing the inventories to its present location and condition. The finished goods have been valued inclusive of Excise duty.

F. Retirement benefits:

(i) The Companys contribution to provident fund is charged to Profit and Loss Account. (ii) Leave encashment is paid on annual basis evgry year and charged to Profit & Loss Account. (iii) Provision for Accrued Gratuity has been made on the basis of in house estimate only and not on the basis of professional actuarial valuation report.

G. Foreign Currency Transactions:

Transactions in Foreign currency are recorded at the rate of exchange in force at the time transactions are effected and exchange difference, if any, on settlement of transaction is recognised in Profit & Loss Account.

H. Contingent Liability:

A disclosure for a contingent liability is made when there is a possible obligation as a result of past event, existence of which will be confirmed only by occurrence or non occurrence of a future event, which is not wholly within the control of the enterprise.

I. Borrowing Costs:

Borrowing costs that are attributable to the acquisition or construction of qualifying assets are capitalized as part of the cost of such assets. A qualifying asset is one that necessarily takes substantial period of time to get ready for intended use. All other borrowing costs are charged to revenue.

J. Related Party Transactions:

Disclosure of transactions with Related Parties, as required by Accounting Standard 18 "Related Party Disclosures" has been set out in a separate statement annexed to this Schedule. Related Parties as defined under clause 3 of the Accounting Standard have been identified on the basis of representations made by key managerial personnel and information available with the Company.

K. Taxes on Income:

In view of the losses, no provision for income tax has been made.

L. Provisions:

A provision is recognized when company has a legal and constructive obligation as a result of a past event, for which it is probable that cash outflow will be required and a reliable estimate has been made of the amount of the obligation.

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Mar 31, 2009

A. Basis for Preparation of Accounts:

The financial statements have been prepared under the historical cost convention, in accordance with Accounting Standards issued by the Institute of Chartered Accountants of India and-the provisions of the Companies Act, 1956, as adopted consistently by the company. All income and expenditure having a material bearing on the financial statements are recognized on accrual basis.

B. Revenue Recognition:

Sales are recognized when goods are supplied and recorded net of excise duty on goods manufactured but includes job work income.

C. Fixed Assets & Depreciation:

Fixed Assets are capitalised at cost inclusive of Inward Freight, Duties, Taxes, Installation expenses and allocable preoperative expenses. Depreciation has been provided on Straight Line Method, at the rates specified under schedule XIV to the Companies Act, 1956. No depreciation is provided on assets that have already been depreciated to the extent of 95% of their original value.

D. Investments:

Investments are stated at cost.

E. Inventories:

Raw material and consumables at Cost (net of Excise & VAT) including expenses incurred in bringing the inventories to its present location and condition. The finished goods have been valued inclusive of Excise duty.

F. Retirement benefits:

(i) The Companys contribution to provident fund is charged to Profit and Loss Account.

(ii) Leave encashment is paid on annual basis every year and charged to Profit & Loss Account.

G. Foreign Currency Transactions:

Transactions in Foreign currency are recorded at the rate of exchange in force at the time transactions are effected and exchange difference, if any, on settlement of transaction is recognised in Profit & Loss Account.

H. Contingent Liability:

A disclosure for a contingent liability is made when there is a possible obligation as a result of past event, existence of which will be confirmed only by occurrence or non occurrence of a future event, which is not wholly within the control of the enterprise.

I. Borrowing Costs:

Borrowing costs that are attributable to the acquisition or construction of qualifying assets are capitalized as part of the cost of such assets. A qualifying asset is one that necessarily takes substantial period of time to get ready for intended use. All other borrowing costs are charged to revenue.

J. Related Party Transactions:

Disclosure of transactions with Related Parties, as required by Accounting Standard 18 "Related Party Disclosures" has been set out in a separate statement annexed to this Schedule. Related Parties as defined under clause 3 of the Accounting Standard have been identified on the basis of representations made by key managerial personnel and information available with the Company.