Notes to Accounts of HCP Plastene Bulkpack Ltd.

Mar 31, 2025

n Provisions, contingent liabilities and contingent assets

Provisions are recognized wnen the Company has a present obligation (legal or constructive.âas 3 result of a past event, it is probable that
an outflow of resources embodying economic benefit wfli 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 reflea tne 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 oy Ind AS 24 "Related Party Disclosures" has been set out in a separate
statement annexed to this Schedule as per Note no.35. Related Parties as defined in Ind AS 24 h3ve been identified on the oasis of
representations made by key managerial personnel and information availab''e 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
C3sn outflow will be required and a reliable estimate n.3s been made of tne amount of the obligation. Accordingly, provision for income
tax payaoie has not been done MAT credit of Rs Nil (P.Y. Rs. Nil) laKhs and unaosoroed deoreciation of Rs.Nil/- (P.Y. Rs 344.62) lakhs

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

(a) The Company has received eligibility certificate from concerned deoartment regarding VAT concession for amount of Subsidy of
Rs 3066.38 cakP.s for 3 years in equal installments. Tne VAT Concession is for the penod of 3 years from 01-01-2014 to 31-01-202L
Amount under Subsidy receivaole is treated as Non-Current Assets Tne status of subsidy amount as per certificate received from
concerned authorities is as under

30 Employees Benefit

(I) Post Employment Defined Contribution Plan

Tns Company contributes to the Provident Fund (PF) maintained by the Regional Provident Fund Commissioner. Under the PF scheme
contributions are made by both the Company and its eligible employees to the Fund . based on the current salaries. An amount of
Rs .7.61 Lakhs (31st March 2024 : Rs.il 9S Lakhs) has oeen charged to the Statement of Profit and Loss towards Company''s contribution
to the aforesaid PF scheme.

Apart from making monthly contribution to the scheme, the Company has no other obligation
(ii) Post Employment Defined Benefit Plan-Gratuity (Funded)

The Company provides for Gratuity, a defined benefit retirement plan covering eligible employees.

( c ) Valuation technique to determine fair value

The following methods and assumptions were used to estimate the fair values of financial instruments:

(i) The management assessed that fair value of cash and cash equivalents, trade receivables, trade payaoles, bank overdrafts and other
current financial assets 3nd liabilities approximate their carrying amounts largely due to the short-term maturities of these
instruments

(ii) The fair values of tne equity investment which are quoted, 3re derived from Quoted market pnces in active markets. The Investments
measured at fair value (FVTOCIS and falling under fairvalue hierarchy Level 3 are valued on the b3sisof valuation reports provided by
external valuers with the exception of certain investments, where cost has been considered as 3n appropriate estimate of fair value
Because of a wide range of possible fairvalue measurements and cost represents the best estimate of fair values within that range.
The Company considers Comparable Companies Method ( CCM) method and the illiquidity discount based on its assessment of the
judgement that market participants would apply for measurement of fair value of unquoted investments. In the CCM method, the
Company would find comparable listed entities in the market and use the same PE multiple (ranging from 9 .80 to 20.60) for
determining the fair V3lue of the investment.

(fii)The fa r values of investments in mutual fund units is based on the net asset value i''NAV'') as stated oy the issuers of these mutual
fund units in the published statements as at Balance Sheet date. NAV represents the price at which the issuer will issue further units of
mutual fund and the price at which issuers will redeem sucn units from the investors.

(iv> The Company enters into derivative financial instruments with various counterparties, principally banks. The fair value of derivative
financial instruments is based on odservaoie market inputs including currency spot and forward rate, yield curves, currency volatility,
credit quality of counterparties , interest rate and forward rate curves of the underlying instruments etc. and use of appropriate
valuation models.

(v) The fair value of non-current borrowings carrying floating-rate of interest is not impacted due to interest rate changes, and will not be
significantly different from their carrying amounts as there is no significant change in the under-tying credit risk of the Company (since
the date of inception of the loans).

( d ) Financial risk management objectives

The Company is exposed to market risk (including currency risk, interest rate risk 3nd other price risk}, credit risk 3nd liquidity risk. The
Company''s risk management strategies fc-cus on the un-predictability of these elements 3nd seek to minimise the potential adverse
effects on its financial performance Tne Company''s senior management which is supported by a Treasury Risk Management Group
(âTRMG¹) manages these risks. TRMG advises on financial risks and the appropriate financial risk governance framework for the
Company and provides assurance to the Company''s senior management that the Company''s financial risk activities are governed by
appropriate policies and procedures and that financial risks are identified, measured 3nd managed in accordance with the Company"s
policies and risk objectives . All hedging activities 3re carried out by specialist teams that h3vethe appropriate skills, experience and
supervision The Company''s policy is not to trade in derivatives for speculative purposes

38.1 Financial Risk Management

The Company''s principal financial liabilities comprise loans 3nd borrowings in domestic & foreign currency, trade payables and other payables
The ma-n purpose of these financial Ii30tfrties is to finance the Company''s operations. The Company''s principal financial assets include loans, trade
and other receivacles. 3nd cash ana short-term deposits that derive directly from its operations

The Company has exposure to the following risks from its use of financial instruments:

- Credit risk

- Liquidity risk

- Market risk

This note presents information about the Company''s exoosure to each of the above risks 3nd how the Company is managing such risk.

The companyâs Board of Directors n.as overall responsibility for the estaolishment and oversight of the company''s risk management
framework. The company''s risk management policies are established to identify and analyse the risks facec by the company, to set sopropnate
risk limits and Control and to monitor risks Risk management policies and systems are reviewed regularly to reflect changes in market
conditions end the company''s activities.

38.2 Credit Risk Management

Credit risk is the risk of financial loss to the Company if a customer or counterparty to a financial instrument fails to meet its contractual
obligations, and arises principally from the Company''s receivables from customers and others. In addition, credit risk arises from financial
guarantees

Tne Company imp>ements a credit risk management policy under which the Company only transacts business with counterparties that have
a certain level af credit worthiness D3sed on internal assessment of the parties, financial condition, historical experience, and other factors.

Tne Company''s exposure to credit risk is influenced mainly by the individual characteristics of each customer Tne Company has
estaolished 3 credit policy under which each new customer is analyzed individually for creditworthiness.

The Company establishes an allowance for impairment that represents its estimate of incurred losses in respect of U3de and other
receivables Tne main components of this allowance are 3 specific toss component that relates to individually significant exposures,
and a collective loss component that are expected to occur The collective loss allowance is determined based on historical data of
payment statistics for similar financial assets Deot securities ars analyzed individually, and 3n expected loss sh.311 be directly deducted from
debt securities

Credit risk also arses from transactions with financial institutions, and such transactions include transactions of cash and cash equivalents
and various deposits. Tne Company manages its exposure to this credit risk by only entering into transactions witn oanfcs that have high ratings.
Tne Company''s treasury department authorizes, manages and oversees new transactions with parties with whom the Company h3S no
previous relationship.

Tne Company periodically assesses the financial reliability of customers, taking into account the financial condition, current economic trends
and ageing of accounts receivable. Individual risk limits are set accordingly

38.3 Liquidity Risk

Liquidity risk is the risk that the Company may encounter difficulty in meeting the obligations associated with its finandalliabinties that a-e
settled by delivering cash or another financial asset. The Company''s approach to managing liquidity is to ensure, as far as possible, that it will
always have sufficient liquidity to meet it3 liabilities when due , under both normal and stressed conditions, without incurring
unacceptable iosses or risking damage to the Company''s reputation

The company''s treasury department is responsible for liquidity, funding as well as settlement management. In addition, processes 3nd policies
related to such risks are overseen cy senior management. Management monitors the company''s net liquidity position through rolling forecast
or. the basis of expected cash flows.

38.4 Market risk

Market risk is the risk of loss of future earnings, f3ir values or future cash flows that m3y result from a change m the price of 3 financial
Instrument The value of a financial instrument may change as a result of changes in the merest rates, foreign currency exchange rates, equity
prices 3r.d other market changes that affect market risk sensitive instruments- Market risk is attributable to aii market risk sensitive financial
instruments including investments and deposits , foreign currency receivables , payables and lean borrowings. The go3l of market risk
management is optimization of profit and controlling the exposure to market risk within acceptable iimits.

a) Foreign currency rate risk

Foreign currency risk s the risk that the fair V3lue or future cash flows of an exposure will fluctuate because of changes in foreign exchange rates.
The Group transacts business in foreign currencies (primarily USD. EUR and GBP). Consequently.the Group hes foreign currency trade payables and
receivable- and is therefore exposed to foreign exchange risk. The Group manages its foreign currency risk by following policies approved by board
as per established risk management policy.

Principa Raw Material for company''s products are Polypâplane Granules, HOPE Granules. LDPE Granu!es,filler, HOPE Granules, Master Batch etc
Company sources its raw material requirements from domestic markets as well as International markets. Domestic market prize generally remains
In line with international market prices. Volatility in Granules prices, currency fluctuation of rupee vis-a-vis other prominent currencies coupled with
demand-supply scenario in the world market affects the effective price of raw materials. Company effectively manages availability o? material 35
well as price volatility through well planned procurement and inventory strategy and also through approprate contracts 3nd commitments.

40 The Company has fi03tsd a Limited Liaoility Partnership {LLP) in Malaysia in the name of HCP Plastene Buikpack PIT with 60% stake with an
investment of iNR 5.51 Lakhs (RM 30,000) Tne otner two individual partners have 3 Balance 10% stake in LlP. The ODjsetive of floating an
LLP in Malaysia is to explore FIBC and other related product markets in Malaysia and other Asia-Pacific Countries.

41 Tne Company has issued Employee Stock Options {ESOP) to the employees of the Company and its Subsidiary ESOP entitles its holder to equity
shares to be considered Potential Equity Shades.

42 Additional statutory information:

(a) Tne title deeds of all the immovacie properties., {other than immovable properties where the Group is the lessee and the lease ag''eements are duly execute:
in favour of the Group) disclosed in the financial statements included in property, plant and equipment and capital work-in progress are held in the name o
the Group as at the balance sheet date

(b) The Group has not advanced or loaned or invested funds to any oromoterfs), Directors). KMP(s) or Related Parties.

(c) Tne Group Goes not have any ben3mi property, where any proceeding has been initiated or pending against the Group for holding any benami property.

(d) The Group is not declared wilful defaulter by and bank or fir\3nci3ls institution or lender

(e) Tne Group does not have any transactions with companies which are struck off.

(f) Tne Group does not nave any charges or satisfaction which is yet to be registered with ROC oeyond the statutory period.

(g) Tne Group has complied with the number of layers prescriced under clause (S7) of section 2 of the Act read with the Companies (Restriction on number of
Layers) Rules. 2017.

(h) No scheme of arrangements have beer approved by tne competent authority. Hence, reporting under this point is not apoiicabie.

(i) I. The Group has not advanced or loaned or invested funds to any other person(s) or entity(ies), including foreign entities (Intermediaries) with the

understanding that the Intermediary shall:

{l| directly or Indirectly lend or invest in other persons or entities Identified In any manner whatsoever by or on behalf of the funding party (ultimate benefr claries i

(it) provide any guarantee, security or the like on behalf of the ultimate beneficiaries
II. The Group has not received any fund from any person(s) orentity(iEs), including foreign entities (funding party) with the understanoing (whether recorder
in writing or otherwise) that the Company shall

(I) directly or indirectly lend or invest in other persons or entities -oentrfied In any manner whatsoever py or on behalf of the funding party (ultimate beneficiaries ₍

(or)

(ii) provide any guarantee, security or the like on Denalf of the ultimate beneficiaries.

(j) There are no transactions not recorded in the books of accounts that has been surrendered or disposed as income during the year in the tax assessments
under the Income Tax Act, 19S1

(k) Corporate social responsibility

(a) Corporate social responsibility . amount require to be spent as per Section 135 of the companies Act. 2013 read with Schedule VII

(b) Expenses related to Corporate Social responsibility is Rs. Nil

43 Figures for the previous year have been regrouped/.-eclassified wherever necessary to conform to current period''s classification, in order to
comply with the requirements of the amended Schedule III to the Companies Act,2013.

Referred to in our report of even date For and on behalf of the 8oard of Directors of

HCP Plastene BulkpackLimrted (Earlier known as Gopaia Polyplast Limited)
For Ashok Dhariwal & Co CIN : L25200GJ1984PLC050560

Chartered Accountants
Firm Regd. No.: 100648W

Ashok Dhariwat Prakash Parekh Anil Goyal

Partner Managing Director Chairman

Membership No.: 036452 DIN:00158264 DIN:03071035

Place: Ahmedabad

Date 26th May. 2025

UD1N : 250364528MKTGK2676

ShwetaJhawar DhrumilShah

Company Secretary Chief Financial Officer

Place: Ahmeda03d Place Ahmedabad

Date: 26th May, 2025 Date: 26th May, 2025

Mar 31, 2024

(b) Terms / Rights attached to the equity Shares :

The Company has one class of shares referred to as equity shares having a par value of '' 10 each. Each shareholder is entitled to one vote per share held. In the e vent of liquidation , the equity shareholders are eligible to receive the remaining assets of the Company after distribution of all preferential amounts, in proportion to their shareholding.

18.1 NATURE OF SECURITIES (LOANS REPAYABLE ON DEMANDS)

(a) Working Capital Loans granted from Bank of Maharashtra to the tune of '' 50 Crore with ROI of 10.55%

(b) Term Loan of '' 19.22 Crore sanctioned by Bank of Maharashtra with outstanding of '' 12.73 Crore of Bank of Baroda taken over with ROI 10.55% the said Term Loan to be be paid in four Quarterly Equal installments.

31 EMPLOYEES BENEFIT :-

(I) Post Employment Defined Contribution Plan

The Company contributes to the Provident Fund (PF) maintained by the Regional Provident Fund Commissioner. Under the PF scheme contributions are made by both the Company and its eligible employees to the Fund , based on the current salaries . An amount of '' 11.98 Lakhs (31^st March 2023 : Rs.10.63 Lakhs ) has been charged to the Statement of Profit and Loss towards Company''s contribution to the aforesaid PF scheme.

Apart from making monthly contribution to the scheme, the Company has no other obligation.

(ii) Post Employment Defined Benefit Plan-Gratuity (Funded)

The Company provides for Gratuity, a defined benefit retirement plan covering eligible employees.

A. Defined Contribution Plans

Contributions to defined contribution plans, recognised as expense for the year is as under :

(b) Fair value hierarchy

All assets and liabilities for which fair value is measured or disclosed in the Standalone Financial Statements are categorised within the fair value hierarchy, described as follows:

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.

The following methods and assumptions were used to estimate the fair values of financial instruments:

(i) The management assessed that fair value of cash and cash equivalents, trade receivables, trade payables, bank overdrafts and other current financial assets and liabilities approximate their carrying amounts largely due to the short - term maturities of these instruments.

(ii) The fair values of the equity investment which are quoted, are derived from quoted market prices in active markets. The Investments measured at fair value (FVTOCI) and falling under fair value hierarchy Level 3 are valued on the basis of valuation reports provided by external valuers with the exception of certain investments, where cost has been considered as an appropriate estimate of fair value because of a wide range of possible fair value measurements and cost represents the best estimate of fair values within that range.

The Company considers Comparable Companies Method ( CCM) method and the illiquidity discount based on its assessment of the judgement that market participants would apply for measurement of fair value of unquoted investments. In the CCM method, the Company would find comparable listed entities in the market and use the same PE multiple (ranging from 9 .80 to 20.60) for determining the fair value of the investment.

(iii) The fair values of investments in mutual fund units is based on the net asset value (''NAV'') as stated by the issuers of these mutual fund units in the published statements as at Balance Sheet date. NAV represents the price at which the issuer will issue further units of mutual fund and the price at which issuers will redeem such units from the investors.

(iv) The Company enters into derivative financial instruments with various counterparties, principally banks. The fair value of derivative financial instruments is based on observable market inputs including currency spot and forward rate, yield curves, currency volatility, credit quality of counterparties , interest rate and forward rate curves of the underlying instruments etc. and use of appropriate valuation models.

(v) The fair value of non-current borrowings carrying floating-rate of interest is not impacted due to interest rate changes, and will not be significantly different from their carrying amounts as there is no significant change in the under-lying credit risk of the Company (since the date of inception of the loans).

( d ) Financial risk management objectives

The Company is exposed to market risk (including currency risk, interest rate risk and other price risk), credit risk and liquidity risk. The Company''s risk management strategies focus on the un-predictability of these elements and seek to minimise the potential adverse effects on its financial performance. The Company''s senior management which is supported by a Treasury Risk Management Group (''TRMG'') manages these risks. TRMG advises on financial risks and the appropriate financial risk governance framework for the Company and provides assurance to the Company''s senior management that the Company''s financial risk activities are governed by appropriate policies and procedures and that financial risks are identified, measured and managed in accordance with the Company''s policies and risk objectives . All hedging activities are carried out by specialist teams that have the appropriate skills, experience and supervision. The Company''s policy is not to trade in derivatives for speculative purposes.

35 CONTINGENT LIABILITIES AND COMMITMENTS :
			('' in Lakhs)
Sr Particulars		As at March 31, 2024	As at March 31, 2023
I Contingent Liabilities
( a ) Claim against the Holding Company not acknoledged as debt #
(i)	As per Approved resolution Plan , Liability of the company which is contingent in nature is being pertaining to period before CIRP.	2.50	2.50
(ii)	Penalties towards wrong availment of IGST Duty for goods imported claiming benefit of notification no 021/2015 Custom dated 01-04-2015 ( Custom Hajira )	7.23	Nil
(iii)	Wrong Claim of Lower IGST rate @ 12% on Import of Goods. Covered under CTH 8479 wide Serial No 201 of Schedule II of IGST levy notification no. 01/2017 of IGST Tax Rate dated 28-06-2017 ( Custom - Mundra ) Appeal Filed at CESTAT.	125.36	Nil
(iv)	Sagar Powertex Private Limited have filed a suit against the Company as well as old management u/s 138 of Negotiable Instrument Act.
( b ) Guarantees :
(i)	Corporate Guarantee given to Bank of Baroda in respect of Loans for its Subsidiary Company named M/s.K.P. Woven Private Limited.	5,500.00	5,500.00
II Commitments
Estir	nated amounts of contracts remaining to be executed on Capital Account (Net of	Nil	Nil
Capital Advance)

a The Company has identified business segments as primary segment. The reportable business setments are Woven Sacks and Woven Label.

b Secondary Segment Information - Geographical Segments 38 EARNING PER SHARE :-

Basic Earnings per Share is calculated by dividing the net profit/ loss for the year attributable to ordinary equity holders by the weighted average number of equity shares outstanding during the year.

Diluted Earnings Per Share is calculated by dividing the profit attributable to equity holders (or owners) of the Company by the weighted average number of equity shares outstanding during the year plus the weighted average number of equity shares that would be issued on conversion of all the dilutive potential equity shares into equity shares.

* The Company has issued Employee Stock Options (ESOP) to the employees of the Company and its Subsidiary. ESOP entitles its holder to equity shares to be considered Potential Equity Shares. As the Company has reported losses during the quarter and for the year ended 31^st March, 2024, the effect of potential equity shares is ignored in calculating diluted earning per share being anti-dilutive effect on EPS.

39 RISK MEASUREMENT, OBJECTIVES AND POLICIES39.1 FINANCIAL RISK MANAGEMENT

The Company''s principal financial liabilities comprise loans and borrowings in domestic & foreign currency, trade payables and other payables. The main purpose of these financial liabilities is to finance the Company''s operations. The Company''s principal financial assets include loans, trade and other receivables, and cash and short-term deposits that derive directly from its operations.

The Company has exposure to the following risks from its use of financial instruments:

- Credit risk

- Liquidity risk

- Market risk

This note presents information about the Company''s exposure to each of the above risks and how the Company is managing such risk.

The company''s Board of Directors has overall responsibility for the establishment and oversight of the company''s risk management framework. The company''s risk management policies are established to identify and analyse the risks faced by the company, to set appropriate risk limits and controls and to monitor risks. Risk management policies and systems are reviewed regularly to reflect changes in market conditions and the company''s activities.

39.2 CREDIT RISK MANAGEMENT

Credit risk is the risk of financial loss to the Company if a customer or counterparty to a financial instrument fails to meet its contractual obligations, and arises principally from the Company''s receivables from customers and others. In addition, credit risk arises from financial guarantees.

The Company''s exposure to credit risk is influenced mainly by the individual characteristics of each customer. The Company has established a credit policy under which each new customer is analyzed individually for creditworthiness.

The Company establishes an allowance for impairment that represents its estimate of incurred losses in respect of trade and other receivables . The main components of this allowance are a specific loss component that relates to individually significant exposures, and a collective loss component that are expected to occur . The collective loss allowance is determined based on historical data of payment statistics for similar financial assets. Debt securities are analyzed individually, and an expected loss shall be directly deducted from debt securities.

The Company''s treasury department authorizes , manages , and oversees new transactions with parties with whom the Company has no previous relationship.

The Company periodically assesses the financial reliability of customers, taking into account the financial condition, current economic trends and ageing of accounts receivable. Individual risk limits are set accordingly.

39.3 LIQUIDITY RISK

Liquidity risk is the risk that the Company may encounter difficulty in meeting the obligations associated with its financial liabilities that are settled by delivering cash or another financial asset. The Company''s approach to managing liquidity is to ensure, as far as possible, that it will always have sufficient liquidity to meet its liabilities when due , under both normal and stressed conditions , without incurring unacceptable losses or risking damage to the Company''s reputation.

The company''s treasury department is responsible for liquidity, funding as well as settlement management. In addition, processes and policies related to such risks are overseen by senior management. Management monitors the company''s net liquidity position through rolling forecast on the basis of expected cash flows.

Maturity profile of financial liabilities

The table below provides details regarding the remaining contractual maturities of financial liabilities at the reporting date based on contractual discounted payments.

39.4 MARKET RISK

Market risk is the risk of loss of future earnings , fair values or future cash flows that may result from a change in the price of a financial instrument. The value of a financial instrument may change as a result of changes in the interest rates, foreign currency exchange rates, equity prices and other market changes that affect market risk sensitive instruments. Market risk is attributable to all market risk sensitive financial instruments including investments and deposits , foreign currency receivables , payables and loan borrowings. The goal of market risk management is optimization of profit and controlling the exposure to market risk within acceptable limits.

a) Foreign currency rate risk

Foreign currency risk is the risk that the fair value or future cash flows of an exposure will fluctuate because of changes in foreign exchange rates.

The Group transacts business in foreign currencies (primarily USD, EUR and GBP). Consequently,the Group has foreign currency trade payables and receivables and is therefore exposed to foreign exchange risk. The Group manages its foreign currency risk by following policies approved by board as per established risk management policy.

Foreign Currency Sensitivity

The Following tables demostrate the sensitivity to reasonabaly possible change in USD rates to functional currency of respective entity. With all other variable held constant . The Group''s exposure to foreign currency changes for all other currencies is not material. The impact on the Group''s profit before tax is due to changes in fair value of monetary assets and Liabilities.

b) Interest rate risk

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates.

Interest rate Sensitivity

With all other variables held constant, the following table demonstrates the impact of the borrowing cost on floating rate portion of loans and borrowings

c) Commodity Price Risk

Principal Raw Material for company''s products are Polyproplene Granules, LLDPE Granules, LDPE Granules,Filler, HDPE Granules, Master Batch etc. Company sources its raw material requirements from domestic markets as well as International markets. Domestic market price generally remains in line with international market prices. Volatility in Granules prices, currency fluctuation of rupee vis-a-vis other prominent currencies coupled with demand-supply scenario in the world market affects the effective price of raw materials. Company effectively manages availability of material as well as price volatility through well planned procurement and inventory strategy and also through approprate contracts and commitments.

Sensitivity Analysis

The table below summarises the impact of increase/decrease in prices of PP Granules, HDPE Granules, LDPE Granules, LLDPE Granules on profit for the period.

40 For the purposes of the Company''s capital management, capital includes issued capital and all other equity reserves. The primary objective of the Company''s Capital Management is to maximize shareholder value. The company manages its capital structure and makes adjustments in the light of changes in economic environment and the requirement of the financial covenants.

41 The Company has floated a Limited Liability Partnership (LLP) in Malaysia in the name of HCP Plastene Bulkpack PLT with 60% stake with an investment of INR 5.51 Lakhs (RM 30,000). The other two individual partners have a balance 40% stake in LLP. The objective of floating an LLP in Malaysia is to explore FIBC and other related product markets in Malaysia and other Asia-Pacific Countries.

42 The Company has issued Employee Stock Options (ESOP) to the employees of the Company and its Subsidiary. ESOP entitles its holder to equity shares to be considered Potential Equity Shares. As the Company has reported losses during the year ended 31^st March, 2024, the effect of potential equity shares is ignored in calculating diluted earning per share being anti-dilutive effect on EPS.

43 ADDITIONAL STATUTORY INFORMATION:

(a) The title deeds of all the immovable properties, (other than immovable properties where the Group is the lessee and the lease agreements are duly executed in favour of the Group) disclosed in the financial statements included in property, plant and equipment and capital work-in progress are held in the name of the Group as at the balance sheet date.

(b) The Group has not advanced or loaned or invested funds to any promoter(s), Director(s), KMP(s) or Related Parties.

(c) The Group does not have any benami property, where any proceeding has been initiated or pending against the Group for holding any benami property.

(d) The Group is not declared wilful defaulter by and bank or financials institution or lender during the year.

(e) The Group does not have any transactions with companies which are struck off.

(f) The Group does not have any charges or satisfaction which is yet to be registered with ROC beyond the statutory period.

(g) The Group has complied with the number of layers prescribed under clause (87) of section 2 of the Act read with the Companies (Restriction on number of Layers) Rules, 2017.

(h) No scheme of arrangements have been approved by the competent authority. Hence, reporting under this point is not applicable.

(i) I. The Group has not advanced or loaned or invested funds to any other person(s) or entity(ies), including foreign entities

(Intermediaries) with the understanding that the Intermediary shall:

(i) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the funding party (ultimate beneficiaries)

(or)

(ii) provide any guarantee, security or the like on behalf of the ultimate beneficiaries.

II. The Group has not received any fund from any person(s) or entity(ies), including foreign entities (funding party) with the understanding (whether recorded in writing or otherwise) that the Company shall:

(i) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the funding party (ultimate beneficiaries)

(or)

(ii) provide any guarantee, security or the like on behalf of the ultimate beneficiaries.

(j) There are no transactions not recorded in the books of accounts that has been surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961

(k) Corporate social responsibility

(a) Corporate social responsibility , amount require to be spent as per Section 135 of the companies Act, 2013 read with Schedule VII.

(l) The Group has not traded or invested in Crypto currency or Virtual Currency during the financial year.

(m) During the year ended 31^st March , 2021 the Central Government has published The Code on Social Security, 2020 and Industrial relations Code, 2020 ("the Codes") in the Gazette of India, inter alia, subsuming various existing labour and industrial laws which deals with employees related benefits including post employment. The effective date of the code and the rules are yet to be notified. The impact of the legislative changes, if any, will be assessed and recognised post notification of the relevant provisions.

44 Figures for the previous year have been regrouped/reclassified wherever necessary to conform to current period''s classification, in order to comply with the requirements of the amended Schedule III to the Companies Act,2013.

Mar 31, 2023

(a) Terms / Rights attached to the equity Shares :

The Company has one class of shares referred to as equity shares having a par value of '' 10 each. Each shareholder is entitled to one vote per share held.

In the event of liquidation, the equity shareholders are eligible to receive the remaining assets of the Company after distribution of all preferential amounts, in proportion to their shareholding.

Note 14.1 : the approved Resolution Plan outlines a proposed payment of '' 3992.50 Lakhs to Bank of Baroda. This sum includes the issuance of Zero Coupon Non-Convertible Debentures (NCD) totalling '' 159.50 Lakhs repayable at the end of 4 years.

As of March 31st, 2023, the Company has already prepaid the amount in lieu of issuance of NCD @9% discount and booked gain of '' 19.50 Lakhs which has been recorded under exceptional items. (Note No 28) Refer Note No. 37 of Notes to Accounts

Note 14.2 :As per approved Resolution Plan by Hon''ble NCLT, Ahmedabad, the Company was required to issue Zero Coupon Non-Convertible Debenture (NCD) of '' 1,59,50,000/- to Bank of Baroda (erstwhile Dena Bank) repayable at the end of 4 years from the date of approval of resolution plan. However, Pending issuance of NCD, company sought necessary approval from Hon''ble NCLT to pay the amount at 9% discount instead of issuing NCD and accordingly paid '' 1,40,00,000/- based on the Judgment received from National Company Law Tribunal dated 10th January 2023

As per intimation available with the Company, there are no other micro, small and medium enterprises as defined in the Micro, Small and Medium Enterprise Development Act, 2006 to whom the Company owes dues on account of principal amount together with interest. This has been relied upon by the auditors.

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.

32 EMPLOYEES BENEFIT :-

(I) Post Employment Defined Contribution Plan

Fund , based on the current salaries . An amount of '' 10,62,525 (31^st March 2022 : '' 10,07,163) has been charged to the Statement of Profit and Loss towards Company''s contribution to the aforesaid PF scheme.

Apart from making monthly contribution to the scheme, the Company has no other obligation.

(ii) Post Employment Defined Benefit Plan-Gratuity (Funded)

The Company provides for Gratuity, a defined benefit retirement plan covering eligible employees.

(b) Fair value hierarchy

All assets and liabilities for which fair value is measured or disclosed in the Standalone Financial Statements are categorised within the fair value hierarchy, described as follows:

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.

The following tables provides the fair value measurement hierarchy of the Company''s financial assets and liabilities that are measured at fair value or where fair value disclosure is required.

The following methods and assumptions were used to estimate the fair values of financial instruments:

reports provided by external valuers with the exception of certain investments, where cost has been considered as an appropriate estimate of fair value because of a wide range of possible fair value measurements and cost represents the best estimate of fair values within that range. The Company considers Comparable Companies Method (CCM) method and the illiquidity discount based on its assessment of the judgement that market participants would apply for measurement of fair value of unquoted investments. In the CCM method, the Company would find comparable listed entities in the market and use the same PE multiple (ranging from 9.80 to 20.60) for determining the fair value of the investment.

(iv) The Company enters into derivative financial instruments with various counterparties, principally banks. The fair value of derivative financial instruments is based on observable market inputs including currency spot and forward rate, yield curves, currency volatility, credit quality of counterparties, interest rate and forward rate curves of the underlying instruments etc. and use of appropriate valuation models.

(v) The fair value of non-current borrowings carrying floating-rate of interest is not impacted due to interest rate changes, and will not be significantly different from their carrying amounts as there is no significant change in the under-lying credit risk of the Company (since the date of inception of the loans).

(d) Financial risk management objectives

The Company is exposed to market risk (including currency risk, interest rate risk and other price risk), credit risk and liquidity risk. The Company''s risk management strategies focus on the un-predictability of these elements and seek to minimise the potential adverse effects on its financial performance. The Company''s senior management which is supported by a Treasury Risk Management Group (''TRMG'') manages these risks. TRMG advises on financial risks and the appropriate financial risk governance framework for the Company and provides assurance to the Company''s senior management that the Company''s financial risk activities are governed by appropriate policies and procedures and that financial risks are identified, measured and managed in accordance with the Company''s policies and risk objectives. All hedging activities are carried out by specialist teams that have the appropriate skills, experience and supervision. The Company''s policy is not to trade in derivatives for speculative purposes.

35 NET GAIN / (LOSSES) ON FAIR VALUE CHANGES

Estimated amounts of contracts remaining to be executed on Capital Account (Net of Advance) and not provided for '' - Nil (Previous year - Nil)

36 CONTINGENT LIABILITY NOT PROVIDED FOR IN RESPECT OF:

a) SagarPowertex Pvt. Ltd have filed a suit against the Company u/s 138 of Negotiable Instrument Act.

b) As per Approved resolution Plan, Liability of the company which is contingent in nature is being caped at '' 2.50 lakh pertaining to period before CIRP.

c) The company has provided a bank guarantee of '' 9100.00 Lakhs for its subsidiary company named K.P. Woven Private Limited.

40 EARNING PER SHARE :-

41 PREPAID TOWARDS NON CONVERTIBLE DEBENTURE:

As per approved Resolution Plan by Hon''ble NCLT, Ahmedabad, the Company was required to issue Zero Coupon Non-Convertible Debenture (NCD) of '' 1,59,50,000/- to Bank of Baroda (erstwhile Dena Bank) repayable at the end of 4 years from the date of approval of resolution plan. However, Pending issuance of NCD, company sought necessary approval from Hon''ble NCLT to pay the amount at 9% discount instead of issuing NCD and accordingly paid '' 1,40,00,000/- based on the Judgment received from National Company Law Tribunal dated 10^th January 2023.

42 RISK MEASUREMENT, OBJECTIVES AND POLICIES42.1 Financial Risk Management

The Company has exposure to the following risks from its use of financial instruments:

- Credit risk

- Liquidity risk

- Market risk

This note presents information about the Company''s exposure to each of the above risks and how the Company is managing such risk.

42.2 Credit Risk Management

Credit risk is the risk of financial loss to the Company if a customer or counterparty to a financial instrument fails to meet its contractual obligations, and arises principally from the Company''s receivables from customers and others. In addition, credit risk arises from financial guarantees.

The Company implements a credit risk management policy under which the Company only transacts business with counterparties that have a certain level of credit worthiness based on internal assessment of the parties, financial condition, historical experience, and other factors. The Company''s exposure to credit risk is influenced mainly by the individual characteristics of each customer. The Company has established a credit policy under which each new customer is analyzed individually for creditworthiness.

The Company establishes an allowance for impairment that represents its estimate of incurred losses in respect of trade and other receivables. The main components of this allowance are a specific loss component that relates to individually significant exposures, and a collective loss component that are expected to occur. The collective loss allowance is determined based on historical data of payment statistics for similar financial assets. Debt securities are analyzed individually, and an expected loss shall be directly deducted from debt securities.

Credit risk also arises from transactions with financial institutions, and such transactions include transactions of cash and cash equivalents and various deposits. The Company manages its exposure to this credit risk by only entering into transactions with banks that have high ratings. The Company''s treasury department authorizes, manages, and oversees new transactions with parties with whom the Company has no previous relationship.

42.3 Liquidity Risk

Liquidity risk is the risk that the Company may encounter difficulty in meeting the obligations associated with its financial liabilities that are settled by delivering cash or another financial asset. The Company''s approach to managing liquidity is to ensure, as far as possible, that it will always have sufficient liquidity to meet its liabilities when due, under both normal and stressed conditions, without incurring unacceptable losses or risking damage to the Company''s reputation.

Maturity profile of financial liabilities

The table below provides details regarding the remaining contractual maturities of financial liabilities at the reporting date based on contractual discounted payments.

42.4 Market risk

Market risk is the risk of loss of future earnings, fair values or future cash flows that may result from a change in the price of a financial instrument. The value of a financial instrument may change as a result of changes in the interest rates, foreign currency exchange rates, equity prices and other market changes that affect market risk sensitive instruments. Market risk is attributable to all market risk sensitive financial instruments including investments and deposits, foreign currency receivables, payables and loan borrowings. The goal of market risk management is optimization of profit and controlling the exposure to market risk within acceptable limits.

a) Foreign currency rate risk

Foreign currency risk is the risk that the fair value or future cash flows of an exposure will fluctuate because of changes in foreign exchange rates. The Group transacts business in foreign currencies (primarily USD, EUR and GBP). Consequently,the Group has foreign currency trade payables and receivables and is therefore exposed to foreign exchange risk. The Group manages its foreign currency risk by following policies approved by board as per established risk management policy.

Foreign Currency Sensitivity

The Following tables demostrate the sensitivity to reasonabaly possible change in USD rates to functional currency of respective entity. With all other variable held constant. The Group''s exposure to foreign currency changes for all other currencies is not material. The impact on the Group''s profit before tax is due to changes in fair value of monetary assets and Liabilities.

b) Interest rate risk

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates.

Interest rate Sensitivity

With all other variables held constant, the following table demonstrates the impact of the borrowing cost on floating rate portion of loans and borrowings

c) Commodity Price Risk

43 For the purposes of the Company''s capital management, capital includes issued capital and all other equity reserves. The primary objective of the Company''s Capital Management is to maximize shareholder value. The company manages its capital structure and makes adjustments in the light of changes in economic environment and the requirement of the financial covenants.

44 The Parent has, issued 4,41,000 equity shares of face value of '' 10/- each (''Rights Equity Shares'') to the Public Eligible Equity Shareholders at an issue price of '' 600/- per Rights Equity Share (including premium of '' 590/- per Rights Equity Share), in the ratio of 3 Rights Equity Shares for every 5 existing fully paid-up shares held by the public eligible equity shareholders as on March 18, 2022, the Record date. Further, on April 21,2022, the Management Committee of the Board of Directors approved the allotment of Equity Shares in relation to the said Rights Issue.

45 ADDITIONAL STATUTORY INFORMATION:

(a) The title deeds of all the immovable properties, (other than immovable properties where the Group is the lessee and the lease agreements are duly executed in favour of the Group) disclosed in the financial statements Included in property, plant and equipment and capital work-in progress are held in the name of the Group as at the balance sheet date.

(b) The Company has not advanced or loaned or invested funds to any promoter(s), Director(s), KMP(s) or their Related Parties.

(c) The Company does not have any benami property, where any proceeding has been initiated or pending against the Group for holding any benami property.

(d) The Company is not declared wilful defaulter by and bank or financials institution or lender during the year.

(e) The Company does not have any transactions with companies which are struck off.

(f) The Company does not have any charges or satisfaction which is yet to be registered with ROC beyond the statutory period.

(g) The Company has complied with the number of layers prescribed under clause (87) of section 2 of the Act read with the Companies (Restriction on number of Layers) Rules, 2017.

(h) No scheme of arrangements have been approved by the competent authority. Hence, reporting under this point is not applicable.

(i) I. The Company has not advanced or loaned or invested funds to any other person(s) or entity(ies), including foreign entities

(Intermediaries) with the understanding that the Intermediary shall:

(i) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the funding party (ultimate beneficiaries)

(or)

(ii) provide any guarantee, security or the like on behalf of the ultimate beneficiaries.

II. The Company has not received any fund from any person(s) or entity(ies), including foreign entities (funding party) with the understanding (whether recorded in writing or otherwise) that the Company shall:

(i) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the funding party (ultimate beneficiaries)

(or)

(ii) provide any guarantee, security or the like on behalf of the ultimate beneficiaries.

(j) There are no transactions not recorded in the books of accounts that has been surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961

(k) Corporate social responsibility

(a) Corporate social responsibility, amount require to be spent as per Section 135 of the companies Act, 2013 read with Schedule VII.

(l) The Company has not traded or invested in Crypto currency or Virtual Currency during the financial year.

(m) The Code on Social Security, 2020 (''Code'') relating to employee benefits during employment and post-employment benefits received Presidential assent in September 2020. The Code has been published in the Gazette of India. However, the date on which the Code will come into effect has not been notified and the final rules/interpretation have not yet been issued. The Company will assess the impact of the Code when it comes into effect and will record any related impact in the period the Code becomes effective.

46 Figures for the previous year have been regrouped/reclassified wherever necessary to conform to current period''s classification, in order to comply with the requirements of the amended Schedule III to the Companies Act,2013.

Mar 31, 2018

1. Terms/Rights attached to the equity shares

The Company has one class of shares referred to as equity shares having a par value of Rs. 10 each. Each shareholder is entitled to one vote per share held. In the event of liquidation, the equity shareholders are eligible to receive the remaining assets of the Company after distribution of all preferential amounts, in proportion to their shareholding.

* Credit facilities from Dena Bank are further secured by:

a) 1^st Charge by way of Equitable Mortgage of Land & Building at 485, Santej Vadsar Road, Santej, Kalol, Gandhinagar and Hypothecation of Plant and Machinery and all other fixed assets of HDPE, BOPP & Label Division Santej, Bajaj and Khatraj.

b) 1^st Charge by way of Equitable Mortgage of Land at Plot No 107, Bangurnagar, Goregaon (W), Mumbai, approximate 865.50 sq yards owned by Shri Mahendra Somani.

c) 1^st Charge by way of Equitable Mortgage of Flat no I/2 Aakanksha Appt., near Sola Railway Crossing, Ahmedabad owned jointly by Shri Manish Somani & Smt Purnima Somani.

d) 1^st Charge by way of Equitable Mortgage of Flat No B/1001, Gala Swing, South Bopal, Ahmedabad owned by Shri Mahendra Somani.

e) Lien of TDR NO - 136166033979 of Rs. 15 lakhs.

f) Personal Guarantee of Following Directors:

Mr. Mahendra Somani, Mr. Manoj Somani, Mr. Manish Somani & Mrs. Purnima Somani.

g) Address of property for point no. 18 and 19 is 5, Golden Tulip Bunglows, Near Shreyash Foundation, Ambawadi, Ahmedabad-380005.

h) All other unsecured loans further guaranteed by Mr. Mahendra Somani, Mr. Manoj Somani and Mr. Manish Somani.

2. Estimated amounts of contracts remaining to be executed on Capital Account (Net of Advance) and not provided for Rs. - Nil (Previous year - Nil)

3. As per management representation and clarification, there are no trade dues payable to micro, small and medium enterprises reportable as per Schedule III of Companies Act 2013

4. Related Parties Disclosure:

1. Parties where control exists : NIL

2. Other related parties where there is significant influence and transactions have taken place:

Related Concerns:

- Arunodaya Credit & Holding Investment (P) Ltd. - Everplus Plastics Private Limited

- Gopala Kraft pack (P) Ltd. - Gopala Mercantile Ltd.

- Gopala Trims Pvt. Ltd. - Indian Bobbin Manufacturing Co.(P) Ltd.

- Kabra Investment Pvt. Ltd. - Kagaj Marketing & Trading Pvt. Ltd.

- Kaustubh Trade Pvt. Ltd. - Navjeevan Synthetics (P) Ltd.

- New Life Marketing & Trading (P) Ltd. - Parag Velvets (P) Ltd.

- Status Credit & Capital Pvt Ltd - Vinayaka Credit & Holding Investment (P) Ltd

- Riddhi Traders and Exporters - Nathmal Somani and Co.

3. Fellow Subsidiaries where common control exists and transactions have taken place: Nil

4. Key Management Personnel

- Mr. Mahendra Somani : Whole-time Director

- Mr. Manoj Somani : Managing Director

- Mr. Manish Somani : Chief Financial Officer (w.e.f.12.01.2018)/Executive Director

- Mr. Sanjay Maniar : Director (w.e.f. 15.03.2018)

- Mr. Kishorilal Sonthaliy : Director (w.e.f 14.11.2017)

- Ms. Palak Parekh : Director (w.e.f 12.02.2018)

- Ms. Ketan Vala : Company Secretary (w.e.f 15.11.2017)

5. Name of Key Management Personnel resigned during the year:

- Mr. Malay Dalal : Director (Resigned w.e.f. 28.09.2017)

- Mr. Balkrishna Mittal : Director (Resigned w.e.f. 12.02.2018)

- Ms. Nirali Patel : Director (Resigned w.e.f. 23.11.2017)

- Mr. Krunal Shah : CFO (Resigned w.e.f. 05.08.2017)

- Ms. Anal Desai : Company Secretary (Resigned w.e.f. 10.11.2017)

6. Relatives of Key Management Personnel where transactions have taken places: o Mrs. Ushadevi Somani : Spouse of Mr. Mahendrakumar Somani

o Mrs. Purnima Somani : Spouse of Mr. Manish Somani

Notes:

a. The Company has identified business segments as primary segments. The reportable business segments are Woven Sacks and Woven Label.

b. Secondary Segment Information - Geographical Segments

The sales of Company are mainly in India. Therefore, no reportable Geographical Segments. 44. Balances of some of the Sundry Debtors, Loans & Advances, Creditors and other parties including inoperative Bank a/c are subject to confirmation and reconciliation.

Mar 31, 2016

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

2. Additional information pursuant to the provisions of paragraph 3, 4C and 4D of Schedule VI of the Companies Act, 1956.

I. Quantitative information of Fabric Division is not possible to compile, hence, it is not given.

II. Quantitative details of Woven Sacks Division is as under:

* Excluding Production Outside on Job work basis 717 MT (Previous Year 1101 MT)

4. Broad Categories of Major Material & Services. :

A. Raw Material Consumed. :

a. Polypropylene / LLDPE / HDPE / LDPE

b. White & Colour Master Batch

c. Ink & Reducer

d. BOPP Film

e. Yarn

B. Finished Goods Manufactured :

a. Tape

b. Fabric

c. PP / BOPP / AD Star Woven Sacks

d. Woven Label

C. Finished Goods Traded: a. Fabric and Bags

D. Services Provided : NIL

E. Work In Progress :

a. Tape

b. Fabric

c. Woven Sacks Cut-Pcs.

* Credit facilities from Dena Bank are further secured by:

a) 1st Charge by way of Equitable Mortgage of Land & Building and Hypothecation of Plant and Machinery of HDPE & Label Division at Santej.

b) 1st Charge by way of Equitable Mortgage of Land at Plot No 107, Bangurnagar, Goregaon (W), Mumbai, approximate 865.50 sq yards owned by Shri Mahendra Somani.

c) 1st Charge by way of Equitable Mortgage of Flat no I/2, Aakanksha Appt., Near Sola Railway Crossing, Ahmadabad owned jointly by Shri Manish Somani & Smt Purnima Somani.

d) 1st Charge by way of Equitable Mortgage of Flat No B/1001, Gala Swing, South Bopal, Ahmadabad owned by Shri Mahendra Somani.

e) Lien of TDR NO - 136166033979 of Rs. 15 Lacs.

f) Personal Guarantee of Following Directors :

Mr. Mahendra Somani, Mr. Manoj Somani & Mr. Manish Somani

**Details of Tata Capital Financial Services Ltdâs EMI includes Loan amount Rs 11,24,524/- received in 2016-17.

against advance license

Due to rejection of Form 5 for increasing authorized share capital from 16 cr. to 20 cr. by ROC on the Grounds that company has not submitted proof of payment of registration fees and ROC Fees for the year 1996-97 for increase in authorized share capital from Rs. 5 crore to Rs. 10 crore. The company may be required to file form no. 5 afresh with applicable registration fees, late fees which cannot be quantified at this juncture. During the year the company has filed case with honorable Gujarat high court regarding the clarity and appropriate instruction to resolve the matter, till the pendency of which, the Authorized Capital in ROC records will appear at Rs. 16.00 Crore.

3. As per management representation and clarification, there are no trade dues payable to micro, small and medium enterprises reportable as per Schedule III of Companies Act 2013

4. Related Parties Disclosure:

List of Related Parties

(a) Key Management Personnel

Mr. Mahendra Somani : Chairman

Mr. Manoj Somani : Managing Director

Mr. Manish Somani : Executive Director

Mr. Jugal Kishor Khetawat : Director

Mr. Malay Dalal : Director

Mr. Balkrishna Mittle : Director

Ms. Nirali Patel : Director

Ms. Anal Desai : Company Secretary

Mr. Krunal Shah : CFO

(b) Relatives of Key Management Personnel where transactions have taken places:

Mrs. Purnima Somani : Wife of Shri Manish Somani

Mrs. Ushadevi Somani : Mother of Shri Manoj & Manish Somani

Arunodaya Credit & Holding Investment (P) Ltd.

Gopala Mercantile Ltd.

Gopala Trims Pvt. Ltd.

Gopala Kraft pack (P) Ltd.

Indian Bobbin Manufacturing Co. (P) Ltd.

Kabra Investment Pvt. Ltd.

Kagaj Marketing & Trading Pvt. Ltd.

Kaustubh Trade Pvt. Ltd.

Navjeevan Synthetics (P) Ltd.

New Life Marketing & Trading (P) Ltd.

Parag Velvets (P) Ltd.

Status Credit & Capital Pvt Ltd

Vinayaka Credit & Holding Investment (P) Ltd.

Everplus Plastics Private Limited

Note : 1. Directors Remuneration is inclusive of Contribution to Provident Fund by Company.

2. Previous Year figures are given in brackets.

Notes: a. The company has identified business segments as primary segments. The reportable business segments are Woven Sacks and Woven Label.

b. Secondary Segment Information - Geographical Segments

The sales of company are mainly in India. Therefore no reportable Geographical Segments.

5. Balances of some of the Sundry Debtors, Loans & Advances, Creditors and other parties including inoperative Bank a/c are subject to confirmation and reconciliation.

6. The Company has assessed most of its fixed assets for probable impairment loss as on date of Balance Sheet as per the requirement of AS 28 issued by ICAI, and concluded that no impairment loss needs to be booked.

Mar 31, 2015

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

2. Additional information pursuant to the provisions of paragraph 3, 4C and 4D of Schedule VI of the CompaniesAct, 1956.

I. Quantitative information of Fabric Division is not possible to compile, hence, it is not given.

II. Quantitative details of Woven Sacks Division is as under:

3. Broad Categories of Major Material & Services. :

A. Raw Material Consumed. :

a. Polypropylene / LLDPE / HDPE / LDPE

b. White & Colour Master Batch

c. Ink & Reducer

d. BOPP Film

e. Yarn

B. Finished Goods Manufactured :

a. Tape

b. Fabric

c. PP / BOPP / AD Star Woven Sacks

d. Woven Label

C. Finished Goods Traded:

a. Fabric and Bags

D. Services Provided : NIL

E. Work In Progress :

a. Tape

b. Fabric

c. Woven Sacks Cut-Pcs.

4. Estimated amounts of contracts remaining to be executed on Capital Account (Net of Advance) and not provided for Rs. - Nil (Previous year - Nil)

5. Contingent Liability not provided for in respect of:

31.03.2015 31.03.2014

Rs. in lacs Rs. in lacs

Guarantee given by Company's bankers 127.19 100.00

(Guarantees have been given by the Company's bankers in the normal course of business and are not expected to result in any liability on the Company)

Export commitments to be fulfilled for 45.07 33.50 Import of Raw Material against advance license

Due to rejection of Form 5 for increasing authorized share capital from 16 cr. to 20 cr. by ROC on the Grounds that company has not submited proof of payment of registration fees and ROC Fees for the year 1996-97 for increase in authorized share capital from Rs. 5 crore to Rs. 10 crore. The company may be required to file form no. 5 afresh with applicable registration fees, late fees which cannot be quantified at this juncture. During the year the company has filed case with honorable Gujarat high court regarding the clarity and appropriate instruction to resolve the matter, till the pendency of which, the Authorised Capital in ROC records will appear at Rs. 16.00 Crore.

6. On the basis of the information available with the company, there is no amount remaining unpaid as on 31st March, 2015 to any supplier who is a small scale or ancillary industrial undertaking beyond the agreed credit period.

7. Related Parties Disclosure:

List of Related Parties

(a) Key Management Personnel

Mr. Mahendra Somani : Chairman

Mr. Manoj Somani : Managing Director

Mr. Manish Somani : Executive Director

Mr. Jugal Kishor Khetawat : Director

Mr. Malay Dalal : Director

Mr. Balkrishna Mittle : Director

Mr. Rajkumar Poddar : Director

Ms. Nirali Patel : Director

Ms. Anal Desai : Company Secretary

Mr. Krunal Shah : CFO

(b) Relatives of Key Management Personnel where transactions have taken places:

Mrs. Purnima Somani : Wife of Shri Manish Somani

Mrs. Ushadevi Somani : Mother of Shri Manoj & Manish Somani

Miss Pallavi Somani : Daughter of Shri Manoj Somani

(c) Related Concerns:

Arunodaya Credit & Holding Investment (P) Ltd.

Gopala Mercantile Ltd.

Gopala Trims Pvt. Ltd.

Gopala Kraft pack (P) Ltd.

Indian Bobbin Manufacturing Co. (P) Ltd.

Kabra Investment Pvt. Ltd.

Kagaj Marketing & Trading Pvt. Ltd.

Kaustubh Trade Pvt. Ltd.

Navjeevan Synthetics (P) Ltd.

New Life Marketing & Trading (P) Ltd.

Parag Velvets (P) Ltd.

Status Credit & Capital Pvt Ltd

Vinayaka Credit & Holding Investment (P) Ltd.

Everplus Plastics Private Limited

a. The company has identified business segments as primary segments. The reportable business segments are Woven Sacks and Woven Label.

b. Secondary Segment Information - Geographical Segments

The sales of company are mainly in India. Therefore no reportable Geographical Segments.

8. Balances of some of the Sundry Debtors, Loans & Advances, Creditors and other parties including inoperative Bank a/c are subject to confirmation and reconciliation.

9. The Company has assessed most of its fixed assets for probable impairment loss as on date of Balance Sheet as per the requirement of AS 28 issued by ICAI, and concluded that no impairment loss needs to be booked.

Mar 31, 2014

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

* Credit facilities from Dena Bank are further secured by:

a) 1st Charge by way of Equitable Mortgage of Land & Building and Hypothecation of Plant and Machinery of HDPE & Label Division at Santej.

b) 1st Charge by way of Equitable Mortgage of Land at Plot No 107, Bangurnagar, Goregaon (W), Mumbai, approximate 865.50 sq yards owned by Shri Mahendra Somani.

c) 1st Charge by way of Equitable Mortgage of Flat no I/2 Aakanksha Appt., near Sola Railway Crossing, Ahmedabad owned jointly by Shri Manish Somani & Smt Purnima Somani.

d) 1st Charge by way of Equitable Mortgage of Flat No B/1001, Gala Swing, South Bopal, Ahmedabad owned by Shri Mahendra Somani.

e) Lien of TDR NO - 8594207 of Rs. 15L dated - 01.03.2011.

2. Estimated amounts of contracts remaining to be executed on Capital Account (Net of Advance) and not provided for Rs. - Nil (Previous year - Nil)

3. Contingent Liability not provided for in respect of:

31.03.2014 31.03.2013

Rs. in lacs Rs. in lacs

Guarantee given by Company''s bankers 100.00 55.00

(Guarantees have been given by the Company''s bankers in the normal course of business and are not expected to result in any liability on the Company)

Export commitments to be fulfilled for 33.50 33.50 Import of Raw Material against advance license

Due to rejection of Form 5 for increasing authorized share capital from 16 cr. to 20 cr. by ROC on the Grounds that company has not submit proof of payment of registration fees and ROC Fees for the year 1996-97 for increase in authorized share capital from Rs. 5 crore to Rs. 10 crore. The company may be required to file form no. 5 afresh with applicable registration fees, late fees which cannot be quantify at this juncture.

4. On the basis of the information available with the company, there is no amount remaining unpaid as on 31st March, 2014 to any supplier who is a small scale or ancillary industrial undertaking beyond the agreed credit period.

Notes: a. The company has identified business segments as primary segments. The reportable business segments are Woven Sacks and Woven Label.

a. Secondary Segment Information - Geographical Segments

The sales of company are mainly in India. Therefore no reportable Geographical Segments.

5. Balances of some of the Sundry Debtors, Loans & Advances, Creditors and other parties including inoperative Bank a/c are subject to confirmation and reconciliation.

6. The Company has assessed most of its fixed assets for probable impairment loss as on date of Balance Sheet as per the requirement of AS 28 issued by ICAI, and concluded that no impairment loss needs to be booked.

* Number of Equity shares at the end of the year is 88,66,392 after giving effect of Approved Scheme of Arrangement involving financial restructuring of Company with its shareholders and according to Gujarat high court order as on 07.05.2013. Effect has been given in books of account as on 31.03.2013 however the effect of such scheme is not considered while calculating EPS as on 31/03/13.

Mar 31, 2013

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

2. Additional information pursuant to the provisions of paragraph 3, 4C and 4D of Schedule VI of the Companies Act, 1956.

I. Quantitative information of Fabric Division is not possible to compile, hence, it is not given.

II. Quantitative details of Woven Sacks Division is as under:

3. Broad Categories of Major Material & Services. :

A. Raw Material Consumed. :

a. Polypropylene / LLDPE / HDPE

b. White & Colour Master Batch

c. Ink & Reducer

d. Yarn

B. Finished Goods Manufactured :

a. Tape

b. Fabric

c. Woven Sacks

d. Woven Fabrics

C. Finished Goods Traded: a. Fabric

D. Services Provided : NIL

E. Work In Progress :

a. Tape

b. Fabric

c. Woven Sacks Cut-Pcs.

4. Shareholders with holding over 5% on date of Balance sheet:

As scheme of arrangement involving financial restructuring of company with its shareholders has been approved by honorable high court of Gujarat on 7th May, 2013 the effect of order has been given in 31.03.2013 by virtue of the above shareholder holding 5% on sign of Balance Sheet date are as under.

5. Estimated amounts of contracts remaining to be executed on Capital Account (Net of Advance) and not provided for Rs. - Nil (Previous year - Nil)

6. Contingent Liability not provided for in respect of:

31.03.2013 31.03.2012 Rs. in lacs Rs. in lacs

Guarantee given by Company''s bankers 55.00 47.00

(Guarantees have been given by the Company''s bankers in the normal course of business and are not expected to result in any liability on the Company)

Export commitments to be fulfilled for Import of Raw Material 33.50 45.00 against advance license

7. On the basis of the information available with the company, there is no amount remaining unpaid as on 31 st March, 2013 to any supplier who is a small scale or ancillary industrial undertaking beyond the agreed credit period.

8. Related Parties Disclosure: List of Related Parties

(a) Key Management Personnel

Mr. Mahendra Somani Chairman

Mr. Manoj Somani Managing Director

Mr. Manish Somani Executive Director

(b) Relatives of Key Management Personnel where transactions have taken places: Mrs. Purnima Somani Wife of Shri Manish Somani Mrs. Ushadevi Somani Mother of Shri Manoj & Manish Somani

(c) Related Concerns:

Arunodaya Credit & Holding Investment (P) Ltd.

Gopala Mercantile Ltd.

Gopala Trims Pvt. Ltd.

Gopala Kraft pack (P) Ltd.

Indian Bobbin Manufacturing Co. (P) Ltd.

Kabra Investment Pvt. Ltd.

Kagaj Marketing & Trading Pvt. Ltd.

Kaustubh Trade Pvt. Ltd.

Navjeevan Synthetics (P) Ltd.

New Life Marketing & Trading (P) Ltd.

Parag Velvets (P) Ltd.

Status Credit & Capital Pvt Ltd

Vinayaka Credit & Holding Investment (P) Ltd.

9. Balances of some of the Sundry Debtors, Loans & Advances, Creditors and other parties including inoperative Bank a/c are subject to confirmation and reconciliation.

10. The Company has assessed most of its fixed assets for probable impairment loss as on date of Balance Sheet as per the requirement of AS 28 issued by ICAI, and concluded that no impairment loss needs to be booked.

11. Scheme of Arrangement involving financial restructuring of Company with its shareholders:

The salient features relevant to financial restructuring of Company with its shareholders as per the Scheme of Arrangement approved by the Honourable High Court of Gujarat vide Order dated 07.05.2013are as under

1. On the sanction of this Scheme the existing Equity capital of the Company shall be written down by 60% of the existing paid up Equity Capital by canceling 1,30,98,600 Equity shares of Rs.5/- each aggregating to Rs. 6,54,93,000/-. The existing paid-up Capital of the Company shall be reduced from Rs'' 10,91,55,000/- divided into 2,18,31,000 Equity Shares of Rs. 5/- each fully paid up to Rs. 4,36,62,000/- divided into 87,32,400 Equity Shares of Rs. 5/- each fully paid up.

2. An Equity share holder holding 10 Equity shares of Rs.5/- each , then post reduction, he will get 4 new Equity shares of Rs.5/- each. The face value of Equity share will remain at Rs.5/- only.

3. In the second stage and after reduction of Equity share Capital as per clause (1) above, the issued, subscribed and paid up Equity Shares of the face value of Rs. 5/- each shall be consolidated into Equity Shares of Rs.10/- each and accordingly the existing (2) Equity shares of Rs.5/- each shall be consolidated into (1 ) Equity shares of Rs.10/-each.

4. In the third stage and after reduction and consolidation in the share capital as per clause (1) and (2) above respectively the Company shall convert 4,50,000 1 % Cumulative Redeemable Preference shares of Rs.100/ - each into Equity shares and allot 45,00,000 Equity shares of Rs.10/- each.

5. Fraction shares generated if any will be rounded off to the nearest integer.

Pursuant to the Scheme at Arrangement the treatment in the books of accounts of the Company has been given as follows:

1. A sum of Rs. 6,54,91,080/- from existing Equity Capital of Rs. 10,91,55,000/- divided in to 2,18,31,000 Equity Shares of Rs.5/- (Rupees Five) each fully paid up to Rs. 4,36,62,000/- divided into 87,32,400 Equity Shares of Rs.5/-(Rupees Five) each is transferred to "Capital Restructuring Account".

2. Capital Reserve Balance of Rs. 5,95,61,288.33 as at 31 st March, 2012 is transferred to" Capital Restructuring Account".

3. Balance of Accumulated Losses of Rs. 12,50,52,369/- as at 31st March, 2012, is transferred to "Capital Restructuring Account".

4. To the extent of the amount transferred to the Capital Restructuring Account under this Para 1, 2 & 3 above, there is reduction of share capital of the Company, which is effected as an integral part of the Scheme in accordance with the provisions of Sections 100 to 104 read along with Section 80 of the Act, without involving either diminution of liability in respect of the unpaid share capital or payment to any shareholder of paid up share capital.

5. As per Accounting standard -4 (Para 5.3) issued by ICAI, the effect of the above scheme has been taken in the Balance Sheet by way of adjustments to assets and liabilities, as the order was passed by honorable High Court of Gujarat on 7th May, 2013 approving the above scheme but the conditions were already existing on date of Balance sheet.

Mar 31, 2012

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

2 Additional information pursuant to the provisions of paragraph 3,4C and 4D of Schedule VI of the Companies Act, 1956.

I. Quantitative information of Label Division is not possible to compile, hence, it is not given.

II. Quantitative details of Woven Sacks Division is as under:

3. Broad Categories of Major Material & Services.:

A. Raw Material Consumed.:

a. Polypropylene / LLDPE

b. White & Colour Master Batch

c. Ink & Reducer

B. Finished Goods Manufactured:

a. Tape ,

b. Fabric

c. Woven Sacks

d. Woven Label

C. Finished Goods Traded:

a. Fabric

D. Services Provided: NIL

E. Work In Progress:

a. Tape

b. Fabric

c. Woven Sacks Cut-Pcs.

* Above credit facilities are further secured by:

a) Second Charge on the Fixed Assets financed by IDBI Ltd.

b) First charge over the Fixed Assets of Kadi Unit of the Company.

c) Corporate Guarantee of Kabra Investment Pvt. Ltd.

4. Estimated amounts of contracts remaining to be executed on Capital Account (Net of Advance) and not provided for Rs. - Nil (Previous year - Nil)

5. Contingent Liability not provided for in respect of:

31.03.2012 31.03.2011 Rs. in lacs Rs. in lacs

Guarantee given by Company's bankers 47.00 55.75 (Guarantees have been given by the Company's bankers in the normal course of business and are not expected to result in any liability on the Company)

Export commitments to be fulfilled for Import of Raw Material 45.00 45.00 against advance license

6. On the basis of the information available with the company, there is no amount remaining unpaid as on 31 st March, 2012 to any supplier who is a small scale or ancillary industrial undertaking beyond the agreed credit period.

7. Related Parties Disclosure:

List of Related Parties

(a) Key Management Personnel

Mr. Mahendra Somani Chairman

Mr. Manoj Somani Managing Director

Mr. Manish Somani Executive Director

(b) Relatives of Key Management Personnel where transactions have taken places:

Mrs. Purnima Somani Wife of Shri Manish Somani

Mrs. Ushadevi Somani Mother of Shri Manoj & Manish Somani

(c) Related Concerns:

Arunodaya Credit & Holding Investment (P) Ltd.

Gopala Mercantile Ltd.

Gopala Trims Pvt. Ltd.

Gopala Kraft pack (P) Ltd.

Indian Bobbin Manufacturing Co. (P) Ltd.

Kabra Investment Pvt. Ltd.

Kagaj Marketing & Trading Pvt. Ltd.

Kaustubh Trade Pvt. Ltd.

Navjeevan Synthetics (P) Ltd.

New Life Marketing & Trading (P) Ltd.

Parag Velvets (P) Ltd.

Status Credit & Capital Pvt Ltd

Vinayaka Credits Holding Investment (P) Ltd.

Notes: a. The company has identified business segments as primary segments. The reportable business segments are Woven Sacks and Woven Label,

b. Secondary Segment Information - Geographical Segments -

The sales of company are mainly in India. Therefore no reportable Geographical Segments.

8. Balances of some of the Sundry Debtors, Loans & Advances, Creditors and other parties including inoperative Bank a/c are subject to confirmation and reconciliation.

Mar 31, 2010

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

2. Additional information pursuant to the provisions of paragraph 3, 4C and 4D of Schedule VI of the Companies Act, 1956.

I. Quantitative information of Label Division is not possible to compile, hence, it is not given.

3. I. Outstanding Term Loan & Working Capital Demand Loan (WCDL) from IDBI Ltd. for the Santej Unit, is secured by:

a) Mortgage of Land & Building and Hypothecation of Plant & Machinery at Santej Unit;

b) Second charge over the current assets of the Company, which are under Dena Banks first charge.

II. Dena Bank

A. Term Loan from Dena Bank is secured by First charge over the assets acquired from the said term loan.

B. The Working capital limits from Dena Bank comprising of WCDL/FCDL, Cash Credit, Letter of Credit and Bank guarantee are secured by Hypothecation of stocks of raw materials, work in process, finished goods, stores & spares and receivables of the Company.

Both the above credit facilities are further secured by:

a) Second Charge on the Fixed Assets financed by IDBI Ltd.

b) First charge over the Fixed Assets of Kadi Unit of the Company.

c) Corporate Guarantee of Kabra Investment Pvt. Ltd.

III. All the above Loans are further secured by:

Personal Guarantees, wherever stipulated, of the Directors of the Company viz. Shri Manoj Somani, Shri Manish Somani and Shri Mahendra Somani.

4. Estimated amounts of contracts remaining to be executed on Capital Account (Net of Advance) and not provided for Rs. - Nil (Previous year - Nil)

5. The Income Tax Assessments of the Company has been completed upto A. Y. 2007-08.

6. Contingent Liability not provided for in respect of:

31.03.2010 31.03.2009

Guarantee given by Companys bankers 55.75 50.50 (Guarantees have been given by the Companys bankers in the

normal course of business and. are not expected to result in any liability on the Company)

7. Modvat credit in respect of Excise Duty paid on inputs & capital goods has been credited in Profit & Loss account as per the practice regularly followed by the Company. Based on legal opinion, the company has availed Cenvat credit in respect of Excise Duty, various Education & Secondary education cess in its excise records, on purchases from EOU. However, keeping conservative approach in mind, this has not been considered while calculating the profit & loss of the company and provision of Rs. 9,61,509/ - (Previous Year Rs. 1,94,56,173/-) has been made for the same.

8. On the basis of the information available with the company, there is no amount remaining unpaid as on 31st March, 2010 to any supplier who is a small scale or ancillary industrial undertaking beyond the agreed credit period.

9. As reported in para 11 of the CARO report, the company has defaulted in paying interest and principal in respect of the loans taken from IDBI Bank. The company is negotiating with the IDBI Bank for a restructuring/one time settlement (OTS) of the said loans and is hopeful of getting it done in the coming months. In view of the expected restructuring/OTS, the company has not provided interest on the said loans in its books of accounts.

10. Prior Period Items:

Earlier year expenses debited to Profit & Loss A/c Rs. 6,27,655/-. (Previous Year - Rs. Nil)

11. Related Parties Disclosure: List of Related Parties

(a) Key Management Personnel

Mr. Manoj Somani Managing Director

Mr. Manish Somani Executive Director

(b) Relatives of Key Management Personnel where transactions have taken places:

Mrs. Purnima Somani Wife of Shri Manish Somani

Mrs. Ushadevi Somani Mother of Shri Manoj & Manish Somani

(c) Related Concerns:

Indian Bobbin Manufacturing Co. (P) Ltd.

Gopala Kraft Pack (P) Ltd.

Navjeevan Synthetics (P) Ltd.

Parag Velvets (P) Ltd.

Arunodaya Credit & Holding Investment (P) Ltd.

Gopala Mercantile Ltd.

Vinayaka Credit & Holding Investment (P) Ltd.

New Life Marketing & Trading (P) Ltd.

Star Treck Syntex (P) Ltd.

12. Balances of some of the Sundry Debtors, Loans & Advances, Creditors and other parties including inoperative Bank a/c are subject to confirmation and reconciliation.

Mar 31, 2009

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

2. Additional information pursuant to the provisions of paragraph 3, 4C and 4D of Schedule VI of the Companies Act, 1956.

3. I. Outstanding Term Loan & Working Capital Demand Loan (WCDL) from IDBI Ltd. for the Santej Unit, is secured by:

a) Mortgage of Land & Building and Hypothecation of Pfant & Machinery at Santej Unit;

b) Second charge over the current assets of the Company, which are under Dena Banks first charge.

c) WCDL of IDBI is further secured by escrow of receivables of Gujarat Ambuja Cement Ltd.

II. Dena Bank

A. Term Loan from Dena Bank is secured by First charge over the assets acquired from the said term loan.

B. The Working capital limits from Dena Bank comprising of WCDL/FCDL, Cash Credit, Letter of Credit and Bank guarantee are secured by Hypothecation of stocks of raw materials, work in process, finished goods, stores & spares and receivables of the Company.

Both the above credit facilities are further secured by:

a) Second Charge on the Fixed Assets financed by IDBI Ltd.

b) First charge over the Fixed Assets of Kadi Unit of the Company.

c) Corporate Guarantee of Kabra Investment Pvt. Ltd.

III. All the above Loans are further secured by:

Personal Guarantees, wherever stipulated, of the Directors of the Company viz. Shri Manoj Somani, Shri Manish Somani and Shri Mahendra Somani.

IV. Term Loan from The Mehsana Urban Co-operative Bank Ltd, is secured by specific charge over the assets financed by them and personal guarantee of Shri Manoj Somani and Shri Manish Somani

4. Estimated amounts of contracts remaining to be executed on Capital Account (Net of Advance) and not provided for Rs. Nil (Previous year - Rs. 40 Lakhs)

5. The Income Tax Assessments of the Company has been completed upto A. Y. 2006-07.

6. Contingent Liability not provided for in respect of: 31.03.2009 31.03.2008

Guarantee given by Companys bankers 50.50 55.75

(Guarantees have been given by the Companys bankers in the normal course of business and are not expected to result in any liability on the Company)

7. Modvat credit in respect of Excise Duty paid on inputs & capital goods has been credited in Profit & Loss account as per the practice regularly followed by the Company. Based on legal opinion, the company has availed Cenvat credit in respect of Excise Duty, various Education & Secondary education cess in itsexcise records, on purchases from EOU. However, taking conservative approach in mind, this has not been taken into books of accounts and provision of Rs. 1,94,56,173/- has been made for the same.

8. On the basis of the information available with the company, there is no amount remaining unpaid as on 31s1 March, 2009 to any supplier who is a small scale or ancillary industrial undertaking beyond the agreed credit period.

9. Sundry Debtors outstanding for more than six months include a sum of Rs. 150.39 Lacs pertaining to amount receivable from the parties against goods sold to them in earlier years. The parties had raised disputes regarding delay in supply, poor quality of goods supplied etc. which the Company has contested and refused to accept. However the payment is not forthcoming.

10. Prior Period Items:

Earlier year expenses debited to Profit & Loss A/c Rs. Nil. (P Y Rs. 31,131/-)

11. Related Parties Disclosure: List of Related Parties

(a) Key Management Personnel

Mr. Manoj Somani Managing Director

Mr. Manish Somani Executive Director

(b) Relatives of Key Management Personnel where transactions have taken places:

Mrs. Purnima Somani Wife of Shri Manish Somani

Mrs. Ushadevi Somani Mother of Shri Manoj & Manish Somani

(c) Related Concerns:

Indian Bobbin Manufacturing Co. (P) Ltd.

Gopala Kraft Pack (P) Ltd.

Navjeevan Synthetics (P) Ltd.

Parag Velvets (P) Ltd.

New Life Marketing & Trading (P) Ltd.

Arunodaya Credit & Holding Investment (P) Ltd.

Gopala Mercantile Ltd.

Vinayaka Credit & Holding Investment (P) Ltd.

12. Balances of some of the Sundry Debtors, Loans & Advances, Creditors and other parties including inoperative Bank a/c are subject to confirmation and reconciliation.

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