Notes to Accounts of Ideal Technoplast Industries Ltd.

Mar 31, 2025

The obligations are presented as current liabilities in the balance sheet if the entity 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.

(iii) Gratuity obligations

The Company pays gratuity to the employees whoever has completed five years of service with the Company at the time of resignation / retirement. The gratuity is paid @15 days salary for every completed year of service as per the payment of gratuity Act, 1972.

The Liability in respect of grauity and other post-employment benefits is calculated using the Projected Unit Credit Method and spread over the period during which the benefit is expected to be derived from employees’ services.

(iv) Defined contribution plans

The Company pays provident fund contributions to publicly administered 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 recognized as employee benefit expense when they are due.

(v) Bonus plans

The Company recognizes a liability and an expense for bonuses. The Company recognizes a provision where contractually obliged or where there is a past practice that has created a constructive obligation.

The amount recognized as an expense towards contribution are as under; (RS in Lakhs)
Particulars	Year ended 31.03.2025	Year ended 31.03.2024
PF Contribution Expenses	2.64	0.32
ESIC Contribution Expenses	0.59	0.13
Defined benefit plan
(l) Amount Recognised in Balance Sheet
Present value of unfunded obligations	1.03	-
Present value of funded obligations	-	-
Fair value of plan assets	-	-
Net Liability (aseet)	1.03	-
(ll) Amounts to be recognised in Profit and Loss

Current Service Cost	1.03	-
(lII) Reconcilliation of Defined Benefit Obligation
Opening Defined Benefit Obligation	-	-
Current service cost	1.03	-
Actuarial loss/(gain) due to
Experience adjustments on plan Liabilities	-	-
Change in financial assumptions	-	-
Change in demographic assumptions	-	-
Closing Defined Benefit Obligation	1.03	-

f) Income Tax:

Tax expense for the year comprises current and deferred tax.

Current Tax is the amount of tax payable on the taxable income for the year as determined in accordance with the applicable tax rates and the provisions of the Income-tax Act, 1961 and other applicable tax laws that have been enacted or substantively enacted by the end of the reporting period.

Deferred tax is recognized on temporary differences between the carrying amounts of assets and liabilities in the financial statements and the corresponding tax bases used in the computation of taxable profit. Deferred tax liabilities are generally recognised for all taxable temporary differences. Deferred tax assets are generally recognised for all deductible temporary differences to the extent that it is probable that taxable profits will be available against which those deductible temporary differences can be utilised. Such deferred tax assets and liabilities are not recognised if the temporary differences arise from the initial recognition (other than in a business combination) of assets and liabilities in a transaction that affects neither the taxable profit nor the accounting profit. In addition, deferred tax liabilities are not recognised if the temporary difference arises from the initial recognition of goodwill.

The carrying amount of deferred tax assets is reviewed at the end of each reporting period and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the period in which the liability is settled or the asset realised, based on tax rates (and tax laws) that have been enacted or substantively enacted by the end of the reporting period.

Tax relating to items recognized directly in equity or other comprehensive income is recognised in equity or other comprehensive income and not in the statement of profit and loss.

Deferred tax assets and liabilities are offset if there is a legally enforceable right to offset current tax liabilities and assets, and they are related to income taxes levied by the same tax authority, but they intend to settle current tax liabilities and assets on a net basis or their tax assets and liabilities will be realized simultaneously.

g) Property, Plant and Equipment (PPE)

PPE is carried at cost less accumulated depreciation and impairment losses, if any. The cost of PPE comprises of purchase price, applicable duties and taxes net of input tax credit, any directly attributable expenditure on making the asset ready for its intended use, other incidental expenses and interest on borrowings attributable to acquisition of qualifying fixed assets, up to the date the asset is ready for its intended use.

All other repair and maintenance costs, including regular servicing, are recognised in the statement of profit and loss as incurred. When a replacement occurs, the carrying value of the replaced part is de-recognised. Where an item of PPE comprises, major components having different useful lives, these components are accounted for as separate items.

Leasehold improvements are stated at cost including taxes, freight and other incidental expenses incurred, net of input tax credits availed. The depreciation is provided over the life estimated by the management.

Self-constructed assets (Moulds): The Company transfers all the directly attributable expenditure incurred towards construction of moulds including depreciation on actual cost basis.

PPE retired from active use and held for sale are stated at the lower of their net book value and net realizable value and are disclosed separately.

An item of PPE is derecognised upon disposal or when no future economic benefits are expected to arise from the continued use of the asset. Any gain or loss arising on the disposal or retirement of an item of PPE is determined as the difference between the sales proceeds and the carrying amount of the asset and is recognised in the statement of profit and loss.

h) Expenditure during construction period and intangible assets under development:

Expenditure during construction period (including finance cost related to borrowed funds for construction or acquisition of qualifying PPE) is included under Capital Work-inProgress and the same is allocated to the respective PPE on the completion of their construction.

Intangible Assets under development includes the expenditure incurred for acquisition of intangible assets.

i) Depreciation:

Depreciation is the systematic allocation of the depreciable amount of PPE over its useful life and is provided on the straight-line method over the useful lives as prescribed in Schedule II to the Act.

j) Intangible assets and amortization:

Intangible assets acquired separately are measured on initial recognition cost and are amortized on straight line method based on the estimated useful lives.

The period of amortization and amortization method are reviewed at each financial year end.

k) Investment property:

Investment property are the properties held to earn rentals and/or for capital appreciation (including property under construction for such purposes). Investment properties are measured initially at cost, including transaction costs. Subsequent to initial recognition, investment properties are measured at cost model which is in accordance with Ind AS 40.

An investment property is derecognised upon disposal or when the investment property is permanently withdrawn from use and no further economic benefits expected from disposal. Any gain or loss arising on derecognition of the property is included in profit or loss in the period in which the property is derecognised.

Depreciation on building is provided over it’s useful life of 30 years using the Straight-Line Method.

l) Impairment of assets:

Intangible assets and Property, Plant and Equipment (PPE): Intangible assets and PPE are evaluated for recoverability whenever events or changes in circumstances indicate that their carrying amounts may not be recoverable. For the purpose of impairment testing, the recoverable amount (i.e., the higher of the fair value less cost to sell and the value-in-use) is determined on an individual asset basis unless the asset does not generate cash flows that are largely independent of those from other assets. In such cases, the recoverable amount is determined for the Cash Generating Unit (CGU) to which the asset belongs.

If such assets are considered to be impaired, the impairment to be recognized in the statement of profit and loss is measured by the amount by which the carrying value of the assets exceeds the estimated recoverable amount of the asset. An impairment loss is reversed in the statement of profit and loss if there has been a change in the estimates used to determine the recoverable amount. The carrying amount of the asset is increased to its revised recoverable amount, provided that this amount does not exceed the carrying amount that would have been determined (net of any accumulated amortization or depreciation) had no impairment loss been recognized for the asset in prior years.

m) Inventories:

Inventories includes Raw materials, Work-in- progress, finished goods, Stores & Spares, Packing materials and other consumables. These are valued at lower of cost and net realizable value (NRV). However, raw materials are considered to be realizable at cost, if the finished products, in which they will be used, are expected to be sold at or above cost. Further, cost is determined on weighted average basis.

Material in transit

Valuation of Inventories of materials-in-transit is done at cost.

Work-in-Progress (WIP) and Finished goods.

Cost of Finished Goods and WIP includes cost of raw materials, cost of conversion and other costs incurred in bringing the inventories to their present location and condition. Cost of inventories is computed on weighted average basis. Finished goods includes sales in transit which is valued at lower of cost and NRV.

n) Provisions, Contingent liabilities and Contingent assets:

The Company recognises provisions when there is present obligation as a result of past event, and it is probable that there will be an outflow of resources and reliable estimate can be made of the amount of the obligation. If the effect of the time value of money is material, provisions are determined by discounting the expected future cash flows to net present value using an appropriate pre-tax discount rate that reflects current market assessments of the time value of money and, where appropriate, the risks specific to the liability. Unwinding of the discount is recognised in the statement of profit and loss as a finance cost. Provisions are reviewed at each reporting date and are adjusted to the reflect the current best estimate.

A present obligation that arises from past events where it is either not probable that an outflow of resources will be required to settle or a reliable estimate of the amount cannot be made, is disclosed as a contingent liability. Contingent liabilities are also disclosed

when there is a possible obligation arising from past events, the existence of which will be. confirmed only by the occurrence or non- occurrence of one or more uncertain future events not wholly within the control of the Company.

Contingent assets are not recognized in financial statements since this may result in the recognition of income that may never be realised.

o) Financial instruments:

Financial assets and financial liabilities are recognised when the Company becomes a party to the contractual provisions of the instrument. Financial assets and financial liabilities are initially measured at fair value. Transaction costs that are directly attributable to the acquisition or issue of financial assets and financial liabilities (other than financial assets and financial liabilities at fair value through profit or loss) are added to or deducted from the fair value of the financial assets or financial liabilities, as appropriate, on initial recognition. Transaction costs directly attributable to the acquisition of financial assets or financial liabilities at fair value through profit or loss are recognised immediately in profit or loss.

Financial assets

(i) Financial assets carried at amortised cost

A financial asset is subsequently measured at amortised cost if it is held within a business model whose objective is to hold the asset in order to collect contractual cash flows and the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.

(ii) Financial assets at fair value through other comprehensive income

A financial asset is subsequently measured at fair value through other comprehensive income if it is held within a business model whose objective is achieved by both collecting contractual cash flows and selling financial assets and the contractual terms of the financial asset give rise on specified

dates to cash flows that are solely payments of principal and interest on the principal amount outstanding. Further, in case where the Company has made an irrevocable selection based on its business model, for its investments which are classified as equity instruments, the subsequent changes in fair value are recognized in other comprehensive income.

(iii) Financial assets at fair value through profit or loss

A financial asset which is not classified in any of the above categories are subsequently fair valued through profit or loss.

(iv) The Company recognizes loss allowances using the expected credit loss (ECL) model for the financial assets which are not fair valued through profit or loss. Loss allowance for trade receivables with no significant financing component is measured at an amount equal to lifetime ECL. For all other financial assets, expected credit losses are measured at an amount equal to the 12-month ECL, unless there has been a significant increase in credit risk from initial recognition in which case those are measured at lifetime ECL. The amount of expected credit losses (or reversal) that is required to adjust the loss allowance at the reporting date to the amount that is required to be recognised is recognized as an impairment gain or loss in statement of profit or loss.

Financial liabilities and equity instruments

(i) Classification as debt or equity

Financial liabilities and equity instruments issued by the Company are classified according to the substance of the contractual arrangements entered into and the definitions of a financial liability and an equity instrument.

(ii) Equity instruments

An equity instrument is any contract that evidences a residual interest in the assets of the Company after deducting all of its liabilities. Equity instruments are recorded at the proceeds received, net of direct issue costs.

(iii) Financial liabilities

Trade and other payables are initially measured at fair value, net of transaction costs, and are subsequently measured at amortised cost, using the effective interest rate method where the time value of money is significant.

Interest bearing bank loans, overdrafts and unsecured loans are initially measured at fair value and are subsequently measured at amortised cost using the effective interest rate method. Any difference between the proceeds (net of transaction costs) and the settlement or redemption of borrowings is recognised over the term of the borrowings in the statement of profit and loss.

(iv) Derecognition of financial instruments

The Company derecognizes a financial asset when the contractual rights to the cash flows from the financial asset expire or it transfers the financial asset, and the

transfer qualifies for derecognition under Ind AS 109. A financial liability (or a part of a financial liability) is derecognized from the Company’s balance sheet when the obligation specified in the contract is discharged or cancelled or expires.

(v) fair value of financial instruments

In determining the fair value of its financial instruments, the Company uses a variety of methods and assumptions that are based on market conditions and risks existing at each reporting date. The methods used to determine fair value include discounted cash flow analysis, available quoted market prices and dealer quotes. All methods of assessing fair value result in general approximation of value, and such value may or may not be realized.

(vi) Offsetting financial instruments

Financial assets and liabilities are offset, and the net amount is reported in the balance sheet where there is a legally enforceable right to offset the recognized amounts and there is an intention to settle on a net basis or realize the asset and settle the liability simultaneously. The legally enforceable right must not be contingent on future events and must be enforceable in the normal course of business and in the event of default, insolvency or bankruptcy of the Company or the counterparty.

P) Earnings per share:

The basic earnings per share is computed by dividing the profit/(loss) for the year attributable to the equity shareholders by the weighted average number of equities shares outstanding during the year. For the purpose of calculating diluted earnings per share, profit/(loss) for the year attributable to the equity shareholders and the weighted average number of the equity shares outstanding during the year are adjusted for the effects of all dilutive potential equity shares.

Basic & Diluted Earnings per share
Particulars	F.Y. 2024-25	F.Y. 2023-24
i) Net Profit after tax as per Statement of Profit and Loss attributable to Equity Shareholders (Rs in Lakhs)	288.06	235.08
ii) Weighted Average number of equity shares used as denominator for calculating Basic EPS & Diluted EPS (In Nos.)	44,55,479	15,96,202
iii) Basic EPS (in Rs)	6.47	14.73
iv) Diluted EPS (in Rs)	6.47	14.73

q) Cash and cash equivalents:

Cash and cash equivalents include cash on hand and demand deposits with banks. Cash equivalents are short-term balances (with an original maturity of three months or less), highly liquid investments that are readily convertible into known amounts of cash and which are subject to insignificant risk of changes in value.

r) Transactions in foreign currencies:

The financial statements of the Company are presented in Indian rupees, which is the functional currency of the Company and the presentation currency for the financial statements. Transactions in foreign currencies are recorded at the exchange rates prevailing on the date of transaction.

Foreign Currency monetary assets and liabilities such as cash, receivables, payables, etc., are translated at year end exchange rates.

Exchange differences arising on settlement of transactions and translation of monetary items are recognised as income or expense in the year in which they arise.

s) Segment reporting:

The company operates in a single segment, hence not applicable.

t) Government grants:

Grants from the government are recognised at fair value where there is a reasonable assurance that the grant will be received, and the Company will comply with all attached conditions.

Government grants relating to income are deferred and recognised in the profit or loss over the period necessary to match them with the costs they are intended to compensate and presented within other income.

Government grants relating to the purchase of Property, Plant and Equipment are included in non-current liabilities as deferred income and are credited to profit and loss on a straight-line basis over the expected lives of the related assets and presented within other income.

The benefit of a government loan at below current market rate of interest is treated as a government grant.

u) Leases:

As a lessee:

The Company assesses whether a contract contains a lease, at inception of a contract. A contract is, or contains, a lease if the contract conveys the right to control the use of

an identified asset for a period of time in exchange for consideration. To assess whether a contract conveys the right to control the use of an identified asset, the Company assesses whether:

(1) The Contract involves the use of an identified asset.

(2) The Company has substantially all the economic benefits from use of the asset through the period of the lease and

(3) The Company has the right to direct the use of the asset.”

The Company recognizes a right-of-use asset (“ROU”) and a corresponding lease liability for all lease arrangements in which it is a lessee, except for leases with a term of twelve months or less (short-term leases) and low value leases. For these short-term and low value leases, the Company recognizes the lease payments as an operating expense on a straight-line basis over the term of the lease. Certain lease arrangements include the options to extend or terminate the lease before the end of the lease term. ROU assets and lease liabilities includes these options when it is reasonably certain that they will be exercised.

The right-of-use assets are initially recognized at cost, which comprises the initial amount of the lease liability adjusted for any lease payments made at or prior to the commencement date of the lease plus any initial direct costs less any lease incentives.

They are subsequently measured at cost less accumulated depreciation and impairment losses.

Right-of-use assets are depreciated from the commencement date on a straightline basis over the balance lease term of the underlying asset. Right of use assets are evaluated for recoverability whenever events or changes in circumstances indicate that their carrying amounts may not be recoverable.

The lease liability is initially measured at amortized cost at the present value of the future lease payments. The lease payments are discounted using the interest rate implicit in the lease or, if not readily determinable, using the incremental borrowing rates in the country of domicile of the leases. Lease liabilities are re-measured with a corresponding adjustment to the related right of use asset if the Company changes its assessment if whether it will exercise an extension or a termination option.

Lease liability and ROU asset shall be separately presented in the Balance Sheet and lease payments shall be classified as financing cash flows.

As Lessor:

Leases for which the Company is a lessor is classified as a finance or operating lease. Whenever the terms of the lease transfer substantially all the risks and rewards of

ownership to the lessee, the contract is classified as a finance lease. All other leases are classified as operating leases.

When the Company is an intermediate lessor, it accounts for its interests in the head lease and the sublease separately. The sublease is classified as a finance or operating lease by reference to the right-of-use asset arising from the head lease.

For operating leases, rental income is recognized on a straight-line basis over the term of the relevant lease.

Operating lease — Rentals payable under operating leases are charged to the statement of profit and loss on a straight-line basis over the term of the relevant lease unless another systematic basis is more representative of the time pattern in which economic benefits from the leased assets are utilized.

v) Dividend distribution:

Dividends paid (including income tax thereon) is recognised in the period in which the interim dividends are approved by the Board of Directors, or in respect of the final dividend when approved by shareholders.

Rounding off amounts:

w) Rounding off amounts:

All amounts disclosed in the financial statements and notes have been rounded off to the nearest lakhs as per the requirement of Schedule III, unless otherwise stated.

x) Standards issued but not yet effective:

There is no such notification applicable from 1 April 2025.

3 Use of estimates and critical accounting judgements:

In preparation of the financial statements, the Company makes judgements, estimates and assumptions about the carrying values of assets and liabilities that are not readily apparent from other sources. The estimates and the associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and the underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised, and future periods affected.

Significant judgements and estimates relating to the carrying values of assets and liabilities include useful lives of property, plant and equipment and intangible assets, impairment of property, plant and equipment, intangible assets and investments,

provision for employee benefits and other provisions, recoverability of deferred tax assets, commitments and contingencies.

4. Disclosure pursuant to ‘Micro, Small and Medium Enterprises Development Act, 2006:

The Company has not initiated the process of identification of suppliers registered under Micro, Small and Medium Enterprise Development Act, 2006, and confirmation relating to Micro, Small and Medium Enterprise has not been received from Suppliers. As required by Ministry of Corporate affairs (MCA) the details of MSME whose payment is outstanding for more than 45 days as on the end of quarter has not been reported and statement of such MSME'' s with the amount outstanding as on the end of the quarter is not filed in Form MSME 1 regularly.

5. As per Section 135 of the Companies Act, 2013, a company not meeting the applicability threshold and therefore no needs to spend at least 2% of its average net profit for the immediately preceding three financial years on corporate social responsibility (CSR) activities. The areas for CSR activities are eradication of hunger and malnutrition, promoting education, art and culture, healthcare, destitute care and rehabilitation, environment sustainability, disaster relief and rural development projects.

8. Financial instruments and risk management Fair values

a) The fair value of financial assets and liabilities is included at the amount at which the instrument could be exchanged in a current transaction between willing parties, other than in a forced or liquidation sale.

b) The fair value of trade receivables, trade payables and other current financial assets and liabilities is equal to the carrying amounts of these items due to their short-term nature. Where such items are non-current in nature, the same has been classified as Level 3 and fair value determined using discounted cash flow basis.

Set out below, is a comparison by class of the carrying amounts and fair value of the Company''s financial instruments, other than those with carrying amounts that are reasonable approximation of fair values: *Fair value of instruments is classified in various fair value hierarchies based on the following three levels:

Level 1: Level 1 hierarchy includes financial instruments measured using quoted prices.

Level 2: The fair value of financial instruments that are not traded in an active market is determined using valuation techniques, which maximize the use of observable market

data and rely as little as possible on entity specific estimates. If significant inputs required to fair value instruments are observable, the instrument is included in Level 2.

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

There has been no change in the valuation methodology for Level 3 inputs during the year. The Company has not classified any material financial instruments under Level 3 of the fair value hierarchy. There were no transfers between Level 1 and Level 2 during the year.

Management uses its best judgement in estimating the fair value of its financial instruments. However, there are inherent limitations in any estimation technique. Therefore, for all financial instruments, the fair value estimates presented above are not necessarily indicative of the amounts that the Company could have realized or paid in sale transactions as of respective dates. As such, the fair value of financial instruments subsequent to the reporting dates may be different from the amounts reported at each reporting date. In respect of investments as at the transaction date, the Company has assessed the fair value to be the carrying value of the investments as these companies are in their initial years of operations obtaining necessary regulatory approvals to commence their business.

The fair value of trade receivables, trade payables and other current financial assets and liabilities is considered to be equal to the carrying amounts of these items due to their short-term nature. Where such items are non-current in nature, the same has been classified as Level 3 and fair value determined using discounted cash flow basis. Similarly, unquoted equity instruments where most recent information to measure fair value is insufficient, or if there is a wide range of possible fair value measurements, cost has been considered as the best estimate of fair value.

9. Financial risk management

The Company is exposed to market risk (fluctuation in foreign currency exchange rates, price and interest rate), liquidity risk and credit risk, which may adversely impact the fair value of its financial instruments. The Company assesses the unpredictability of the financial environment and seeks to mitigate potential adverse effects on the financial performance of the Company.

(A) Market risk

Market risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk comprises of currency risk, interest rate risk and price risk. Financial instruments affected by market risk include loans and borrowings, trade receivables and trade payables involving foreign currency exposure.

(B) Credit Risk

Financial assets of the Company include trade receivables, employee advances, security deposits held with government authorities and bank deposits which represents Company''s maximum exposure to the credit risk. With respect to credit exposure from customers, the Company has a procedure in place aiming to minimize collection losses. Credit Control team assesses the credit quality of the customers, their financial position, past experience in payments and other relevant factors. The Company''s exposure to credit risk is influenced mainly by the

individual characteristics of each customer. However, management also considers the factors that may influence the credit risk of its customer base, including default risk associate with the industry and country in which customers

operate. Credit quality of a customer is assessed based on an extensive credit rating scorecard and individual credit limits are defined in accordance with this assessment. With respect to other financial assets viz., loans & advances, deposits with government and banks, the credit risk is insignificant since the loans & advances are given to employees only and deposits are held with government bodies and reputable banks. The credit quality of the financial assets is satisfactory, taking into account the allowance for credit losses.

(C) Liquidity risk

Prudent liquidity risk management implies maintaining sufficient cash and the availability of funding to meet obligations when due and to close out market positions. Company''s treasury maintains flexibility in funding by maintaining availability under deposits in banks.

(D) Liquidity risk

The company’s objective is to maintain a balance between continuity of funding and flexibility through the use of bank overdrafts and loans. The liquidity position of the company is not good. As the company''s is not able to timely realize amount due from trade receivables the company has low liquidity.

(E) Foreign Currency Risk

Currency risk is the risk that the value of financial instruments will fluctuate due to changes in foreign exchange rates. Currency risk arises when future commercial transactions and recognized assets and liabilities are denominated in a currency that is not the Establishment''s functional currency. The company have significant currency risk as the company have significant amount outstanding which is denominated in foreign currency.

10. Capital management

For the purpose of the Company''s capital management, capital includes issued equity capital, share premium and all other equity reserves attributable to the equity holders. The primary objective of the Company''s capital managements to maximize the shareholder value.

The Company manages its capital structure and makes adjustments in light of changes in economic conditions and the requirements of the financial covenants. The Company monitors capital using a gearing ratio, which is debt divided by total capital. The Company includes within debt, interest bearing loans and borrowings.

In order to achieve this overall objective, the Company''s capital management, amongst other things, aims to ensure that it meets financial covenants attached to the interestbearing loans and borrowings that define capital structure requirements. Breaches in meeting the financial covenants would permit the bank to immediately call loans and borrowings.

No changes were made in the objectives, policies or processes for managing capital during the years ended 31 March 2025 and 31 March, 2024.

12. No funds have been advanced or loaned or invested (either from borrowed funds or share premium or any other sources or kind of funds) by the Company to or in any other person(s) or entity(ies), including foreign entities ("Intermediaries")with the understanding, whether recorded in writing or otherwise, that the Intermediary shall lend or invest in party identified by or on behalf of the Company (Ultimate Beneficiaries). The Company has not received any fund from any party(s) (Funding Party) with the understanding that the Company shall whether, directly or indirectly lend or invest in other persons or entities identified by or on behalf of the Company ("Ultimate Beneficiaries") or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

13. The company has an accounting software for maintaining its books of account having the feature of recording audit trail (edit log) facility and the same has operated throughout the year for all relevant transactions recorded in the software. Further, the audit trail is not disabled. However, the feature of recording audit trail (edit log) facility at database level is not enabled.

14. The Company has not traded or invested in crypto currency or virtual currency during the current period.

15. The Company is not as willful defaulter by ant bank or financial institution or other lenders.

16. The are no transactions with the Struck off Companies under Section 248 or 560 of the Companies, Act 2013.

17. No proceedings initiated or pending against the Company for holding any benami property under the Benami Transactions (Prohibition) Act, 1988.

18. The Company have not any such transaction which is 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 (such as, search or survey or any other relevant provisions of the Income Tax Act, 1961.

19. Prior period adjustments or Restatements

During the preparation of the financial statements for the year ended 31^st March, 2025 the Company identified a material error in the computation of depreciation for fixed assets in prior periods. Specifically, the depreciation expense was understated as Depreciation has been calculated on WDV method using SLM Rate of Depreciation. In accordance with Ind AS 8, "Accounting Policies, Changes in Accounting Estimates and Errors," the Company has retrospectively restated the comparative financial statements to correct this error. The restatement involved adjusting the depreciation expense, DTA/DTL, Provision for income tax and accumulated depreciation for the affected periods, resulting in a decrease in retained earnings as of the beginning of the earliest prior period presented. The impact of these adjustments on the financial statements is detailed under the section of STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 31 MARCH, 2025 of the financial statement.

20. Previous year figures

a) Pursuant to the amendments to Schedule III vide MCA circular dated March 24, 2021, figures are disclosed in rupee in lakhs.

b) Previous year figures have been regrouped and/or reclassified wherever necessary to conform to current year’s presentation.

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Mar 31, 2024

m) Accounting for Provisions, Contingent Liabilities and Contingent Assets:

A provision is recognized if, as a result of a past event, the Company has
a present legal obligation that is reasonably estimable, and it is probable
that an outflow of economic benefits will be required to settle the
obligation. Provisions are determined by the best estimate of the outflow
of economic benefits required to settle the obligation at the reporting
date. Where no reliable estimate can be made, a disclosure is made as
contingent liability. A disclosure for a contingent liability is also made
when there is a possible obligation or a present obligation that may, but
probably will not, require an outflow of resources. Where there is a
possible obligation or a present obligation in respect of which the
likelihood of outflow of resources is remote, no provision or disclosure is
made.

A contingent asset, where an inflow of economic benefits is probable,
an entity shall disclose a brief description of the nature of the contingent
assets at the end of the reporting period, and, where practicable, an
estimate of their financial effect, measured using the principles set out
for provisions in AS.

n) Cash and Cash equivalents

Cash and Cash equivalents for the purpose of cash flow statement
comprise cash on hand and cash at bank including fixed deposit with
original maturity period of three months or less and short term highly liquid
investments with an original maturity of three months or less.

o) Leases

i. Finance lease: Leases under which the Company assumes substantially all
the risks and rewards of ownership are classified as finance leases. Assets
held under finance leases are initially recognized at their fair value at the
inception of the lease or at the present value of the minimum lease
payments, whichever is lower.

ii. Operating leases: Lease arrangements where the risks and rewards
incidental to ownership of an asset substantially vest with the lessor, are
recognized as operating leases. Lease rentals under operating leases are
recognized in the statement of profit and loss on a straight-line basis.

p) Brought Forward Loss and Depreciation Allowance:

There is no brought forward loss and depreciation allowance and hence
not applicable.

q) Borrowing Costs:

Borrowing costs that are attributable to acquisition, construction or
production of qualifying assets, are capitalized as part of the cost of such
qualifying assets. A qualifying asset is an asset that necessarily takes a
substantial period of time to get ready for intended use. All other
borrowing costs are charged to the Statement of profit and loss in the
period in which they occur. Borrowing costs consist of interest and other
costs that an entity incurs in connection with the borrowing of funds.

r) Trade Receivables and Trade Payables

Trade Receivables: Trade receivables are stated after writing off debts
considered as bad. Adequate provision is made for debts considered
doubtful.

Trade payable: Normally terms for Trade payables are as per the policy
of suppliers in case company''s fails to pay the amount within the due
date of payment the supplier may charge interest for such delay which is
debit to profit and loss account.

As course of normal business practice and for record purpose, we request
all our customers and supplier to provide us with balance confirmation for
the year ending balance.

Certain confirmation of balances of Trade Payables including Advances
paid to suppliers and Trade Receivables including advance received from
customers are awaited and has not been received till the date of
finalization of Accounts. Any Adjustment arising out of such Confirmation
shall be adjusted in subsequent years.

s) Monetary Assets and Monetary liabilities

Monetary Assets: All the Monetary assets including Trade Receivables,
Advance to suppliers, Cash & Bank balance etc. are valued at cost unless
their Receivable is doubtful. Management reviews all the balances of
monetary assets on regular intervals. Management has confirmed all the
balances of financial asset as on 31^st march 2024.

Monetary Liabilities: All the Monetary Liabilities including Trade Payables,
Advances paid to Suppliers, Unsecured loans, bank overdrafts etc. are
valued at cost. Management reviews all the balances of monetary liability
on regular intervals. Management has confirmed all the balances of
financial asset as on 31 ^st March 2024.

Where the Monetary asset and Liabilities are in currency other than
reporting currency then the monetary assets and liability is converted as
per the closing rate as on Balance sheet date.

t) Financial Risk Management

The management reviews the risk management from time to time and the
said policy aims enhancing the value of firm and providing optimum risk
reward trade off. This risk management is based on clear understanding
of variety of risk that the organization faces, disciplined risk monitoring
and measurement and continuous risk assessment and mitigation
measures.

i. Market Risk

Market risk is the risk that the fair value of future cash flows of a financial
instrument will fluctuate because of changes in market conditions. Market
risk comprises three types of risk: interest rate risk, credit and default risk
and liquidity risk. Financial instruments affected by market risk include
loans and borrowings and deposits.

ii. Interest 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. The company borrowings from banks and the rate of Interest are
not fluctuating hence the interest risk to the company is low.

iii. Credit Risk and Default Risk

Credit risk is the risk that counterparty will not meet its obligations under
a financial instrument or customer contract, leading to a financial loss.
The company is exposed to credit risk from its operating activities
(primarily trade receivables, business advances/deposit given). Since, the
Company is not able to timely realize amount due from trade receivables,
credit risk in case of Company is very high.

iv. Liquidity risk

The company''s objective is to maintain a balance between continuity of
funding and flexibility through the use of bank overdrafts and loans. The
liquidity position of the company is not good. As the company''s is not able
to timely realize amount due from trade receivables the company has low
liquidity.

v. Foreign Currency Risk

Currency risk is the risk that the value of financial instruments will fluctuate
due to changes in foreign exchange rates. Currency risk arises when
future commercial transactions and recognized assets and liabilities are
denominated in a currency that is not the Establishment''s functional
currency. The company have significant currency risk as the company
have significant amount outstanding which is denominated in foreign
currency.

U) Corporate Social responsibility

As per Section 135 of the Companies Act, 2013, a company not
meeting the applicability threshold and therefor no needs to spend at
least 2% of its average net profit for the immediately preceding three
financial years on corporate social responsibility (CSR) activities. The
areas for CSR activities are eradication of hunger and malnutrition,
promoting

education, art and culture, healthcare, destitute care and
rehabilitation, environment sustainability, disaster relief and rural
development projects.

V) Indirect Tax and other Taxes:

• There are some Instances of Excess Credit Claimed during the Period.

• Company has complied with all TDS/TCS provision wherever
applicable.

• The GST Return for the period from 23/11/2023 to 31/01/2024 were
Filed under the GSTIN (24AADFI9415J1ZB) of the Firm and The Return
For the period from 01/01/2024 to 31/03/2024 were Filed Under GSTIN
(24AAHCI4073R1Z1) of the Company

• As per Good and Service Act Credit need to be reversed for those
Creditors which are outstanding for more than 180 days and credit
of same shall be taken when the payment is made, but such credit
has not been reversed by us.

3) Disclosure pursuant to ‘Micro, Small and Medium Enterprises
Development Act, 2006:

The Company has not initiated the process of identification of suppliers
registered under Micro, Small and Medium Enterprise Development Act,
2006, and confirmation relating to Micro, Small and Medium Enterprise
has not been received from Suppliers. As required by Ministry of

Corporate affairs (MCA) the details of MSME whose payment is
outstanding for more than 45 days as on the end of quarter has not been
reported and statement of such MSME'' s with the amount outstanding as
on the end of the quarter is not filed in Form MSME 1 regularly.

4) In the opinion of the Directors, any of the assets other than Fixed Assets
and Non-Current Investments have a value on realization in the ordinary
course of the business at least equal to the amount at which they are
stated.

6) In the opinion of the Directors and to the best of their knowledge &
belief, the Current Assets, Closing Stock, Loans and Advances are
approximately of the value stated, if realized in the ordinary course of
business, which is at least equal to the amount at which they are stated
in the balance sheet. The provisions for all determined liabilities are
adequate and not in excess of the amount reasonably required

applicable to the company for the year under the Audit. Difference, if
any, between the figures as per books of account and the GST returns
are reconciled would be accounted in next period of GST returns and
in annual returns. The said differences do not have any material impact
on the financial statement regarding classification, Tax liability and
other requirement of GST provision.

10) Earnings Per Share:

In accordance with AS - 20 "Earning per Share" notified under section
133 of the companies act 2013 read with rule 7 of Companies
(Accounts) Rule 2014, the basic and diluted earnings per share is
being calculated as under:

11) Segment Reporting

The company operates in a single segment, hence not applicable.

12) Based on exercise conduct by the management in respect of
impairment of Fixed Assets as required by AS-28, The management
do not consider to provide for any loss on account of Impairment of
fixed assets.

13) The Company has not traded or invested in crypto currency or virtual
currency during the current period.

14) The Company is not as wilful defaulter by ant bank or financial
institution or other lenders.

15) The are no transactions with the Struck off Companies under Section
248 or 560 of the Companies, Act 2013.

16) No proceedings initiated or pending against the Company for holding
any benami property under the Benami Transactions (Prohibition) Act,
1 988.

17) The charges created on secured loans existing as on 23/11/2023 (i.e.
date of conversion of Partnership firm into unlisted public limited
company) were not registered with MCA within time limit. The existing
secured loans mentioned in Notes 3 were taken over by Kotak
Mahindra Bank as on 21/03/2024 against mortgage of Plot 1 to 4, Trilok
Ind Est, Olpad, Surat and Plot 75 to 81, Madhav Ind Est, Olpad, Surat
and Shop No C-17,Shivnidhi Soc., Adajan, Surat. The charges created
as on 27/03/2024 on such property were registered as on 02/04/2024
with MCA. and the charges were also modified as on 31 /05/2024 with
respect to the same which were registered as on 13/06/2024.

18) The Company have 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:

a. directly or indirectly lends or invest in other persons or entities
identified in any manner whatsoever by or on behalf of the company
(Ultimate Beneficiaries) or

b. provides any guarantee, security or the like to or on behalf of the
Ultimate Beneficiaries.

19) The Company have 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:

a. 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

b. provide any guarantee, security or the like on behalf of the
Ultimate Beneficiaries.

20) The Company have not any such transaction which is 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 (such as, search or survey or any other relevant provisions
of the Income Tax Act, 1961

21) Pursuant to the amendments to Schedule III vide MCA circular dated
March 24, 2021, the following ratios are presented:

22) Previous year figures

a) Pursuant to the amendments to Schedule III vide MCA circular
dated March 24, 2021, figures are disclosed in rupee in lakhs.

b) Previous year figures have been regrouped and/or reclassified
wherever necessary to conform to current year''s presentation.

Signatures to Notes 1 to 21 from an integral part of the account as per
our report of even date attached.

For Sheladiya & Jyani

Chartered Accountants
FRN:134430W

CA Vipul B Sheladiya
Partner

M. No.: 113763

Place: Surat

Date: 29/07/2024

UDIN: 24113763BKAMZG5524

For & on behalf of the Board,

Ideal Technoplast Industries Limited

Prafulkumar K Vaghasiya Vipulbhai D Mendapara Gauravbhai C Gopani

Chairman Managing Director CFO

Place: Surat Place: Surat Place: Surat

Date: 29/07/2024 Date: 29/07/2024 Date: 29/07/2024

Neha Shaw
Company Secretary
M. No.: A56553
Place: Surat
Date: 29/07/2024