Notes to Accounts of Jumbo Bag Ltd.

Mar 31, 2025

Clause (a)(b)(c) - The Authorised Capital comprises of equity shares and non-convertible redeemable Preference shares. The Issued and Fully Paid-up Capital comprise of equity shares having a par value of Rs.10 each.

Clause (e)- Rights, Preference and Restrictions attached to shares Equity Shares:

"The company has one class of equity shares having a par value of Rs. 10 each. Each shareholder is eligible for one vote per share held. The dividend (if any) proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing annual general meeting."

Clause (f)- Shares held by holding company or its ultimate holding company including their subsidiaries- Not applicable

Clause (g)- Particulars of shares held by shareholder holding more than 5% of the aggregate shares in the company:

Clause (h)- Shares reserved for issue under options and contracts/commitments for the sale of shares- Not applicable

Clause (i)- Shares allotted in the preceding five years without payment being received in cash/by way of bonus shares/ shares bought back- Not Applicable

Clause (j)- Terms of any securities convertible into issued along with the earliest date of conversion- Not Applicable

Clause (k)- Calls unpaid- Not applicable

Clause (I)- Forfeited Shares

Nature and purpose of other reserves:Capital Reserve

A capital reserve is a portion of a company''s profits that is set aside for specific long-term purposes, not for regular operational expenses or dividends.

Capital Redemption Reserve

As per Companies Act, 2013, capital redemption reserve is created when Company purchases its own shares out of free reserves or securities premium. A sum equal to the nominal value of the shares so purchased is transferred to capital redemption reserve. The reserve is utilised in accordance with the provisions of section 69 of the Companies Act, 2013

Securities premium:

Securities premium reserve is used to record the premium received on issue of shares by the Company. The reserve can be utilised in accordance with the provision of sec 52(2) of Companies Act, 2013.

General Reserve

General reserve is arising on account of transfer from Profit and Loss Account and gain on revaluation.

Revaluation Reserve:

Revaluation Reserve is arising out of the gain on revaluation of assets. Last revaluation was held on 01-01-2016. Gain transferred to general reserve based on the depreciation provided on the revalued amount during the year.

Other comprehensive Income / Loss

This reserve represents the cumulative gains and losses arising on the remeasurements of net defined benefit plan liability/asset comprising actuarial gains or losses and returns on plan asset, if any, and excludes interest income.

1) Axis Bank Term Loan 1 Terms of repayment -

Period of maturity with respect to the Balance Sheet date: 1 year 9 months (Dec 2026)

Number and Amount of instalments due: 21 installments of Rs.5,05,550/- each are due as on balance sheet date

Rate of interest and other significant relevant terms: Repo rate 2.50%

Default as on the Balance Sheet date - Nil

Term Loan 2Terms of repayment -

Period of maturity with respect to the Balance Sheet date: 1 year 3 months (June 2026)

Number and Amount of instalments due: 15 installments of Rs.4,20,900/- each are due as on balance sheet date

Rate of interest and other significant relevant terms: Repo rate 2.50%

Default as on the Balance Sheet date - Nil

Term Loan 3Terms of repayment -

Period of maturity with respect to the Balance Sheet date: 3 years (March 2028)

Number and Amount of instalments due: 36 installments of Rs.5,55,555/- each are due as on balance sheet date

Rate of interest and other significant relevant terms: Repo rate 2.40%

Default as on the Balance Sheet date - Nil Term Loan 4 Terms of repayment -

Period of maturity with respect to the Balance Sheet date: 4 years 3 months (June 2029)

Number and Amount of instalments due: 51 installments of Rs.7,63,889/- each are due as on balance sheet date

Rate of interest and other significant relevant terms: Repo rate 2.40%

Default as on the Balance Sheet date - Nil

Term Loan 5Terms of repayment -

Period of maturity with respect to the Balance Sheet date: 7 years (March 2032)

Number and Amount of instalments due: 84 months including moratorium period of 8 months. Principal repayable in 75 Monthly Instalments of Rs. 3,94,750/- each and last instalment of Rs.3,93,750 post completion of Moratorium of 8 Months.

Rate of interest and other significant relevant terms: Repo rate 2.65%

Default as on the Balance Sheet date - Nil

Nature of security for above mentioned term loans : Movable Fixed Assets of the Company created out of the term loan both present and future.

Foreign Bill Purchased / Discounted Terms of repayment -

Period of maturity with respect to the Balance Sheet date: Within 120 days Number and Amount of instalments due: Not Applicable

Rate of interest and other significant relevant terms: Repo rate 2.40%

Default as on the Balance Sheet date - Nil

Running Packing Credit

Terms of repayment -

Period of maturity with respect to the Balance Sheet date: Within 180 days

Number and Amount of instalments due: Not Applicable

Rate of interest and other significant relevant terms: Repo rate 2.40%

Default as on the Balance Sheet date - Nil

Cash Credit

Terms of repayment -

Period of maturity with respect to the Balance Sheet date: Not Applicable since it is a Cash Credit facility

Number and Amount of instalments due: Not Applicable

Rate of interest and other significant relevant terms: Repo rate 2.40%

Default as on the Balance Sheet date - Nil

Nature of security : 25% on Stock and Book Debts Cover Period: Upto 90 days

Nature of security for Cash Credit, Foreign Bills Purchased / Discounted and Running Packing Credit

(i) Secured by pari passu first charge on the entire current assets Viz, Raw Material ,Work in Progress, Finished Goods, Receivables-Manufacturing, spares, consumables and other current assets of the Company

Letter of Credit

Terms of repayment -

Period of maturity with respect to the Balance Sheet date: Within 90 days Number and Amount of instalments due: Not Applicable Rate of interest and other significant relevant terms: Not applicable Default as on the Balance Sheet date - Nil

Nature of security: Cash margin - Pledge of FDR equivalent to 10% of limit with Banks Lien

Inventory Funding (IOCL operations)Terms of repayment -

Period of maturity with respect to the Balance Sheet date: Not applicable since it is a Cash Credit facility

Number and Amount of instalments due: Not Applicable

Rate of interest and other significant relevant terms: Repo Rate 2.50%

Default as on the Balance Sheet date - Nil

Nature of security: 1) Book Debts arising Out of Invoices Financed by the bank. 2) Pledge of FDR Rs. 100 Lakhs with Bank''s Lien. 3) Four pre-signed Cheques.

(A) Common Collateral provided for all the above mentioned facilites By Jumbo Bag Limited

(i) Land and Industrial building by Promoter (i) Residential Land and Building

(B) For all the above mentioned loans guarantee is provided by the promoters

2) Kotak Mahindra Prime Limited Car Loan

Terms of repayment -

Period of maturity with respect to the Balance Sheet date: 2 years 2 months (May 2027)

Number and Amount of instalments due: 26 installments of Rs.39,960/- each are due as on balance sheet date

Rate of interest and other significant relevant terms: Fixed rate of 7.80%

Default as on the Balance Sheet date - Nil

Nature of Security : Fixed asset on which loan has been availed.

3) Small Industries Development Bank Of India (SIDBI)Terms of repayment -

Period of maturity with respect to the Balance Sheet date: 1 year 8 month (November 2026)

Number and Amount of instalments due: 20 installments of Rs.2,66,904/- each are due as on balance sheet date

Rate of interest and other significant relevant terms: Fixed rate of 8.85%

Default as on the Balance Sheet date - Nil

3. Dues to Micro, Small and Medium Enterprises:

The management has written to vendors requesting them to inform whether they would fall under the preview of Micro, Small and Medium Enterprises Act, 2001. Based on disclosure received, there is no amount payable to such enterprises as at 31st March 2025. The above information has been determined to the extent such parties have been identified on the basis of information available with the Company which has been relied upon by the auditors.

4. Status on Fire accident claim:

Stock Claim

Brief: The calim relates to fire accident in the year 2013 at one of our units. The company secretary has been attending the hearings andthe last hearing of this particular case happened on 16.06.2025. Since it appears that the process is going to be long winding, the company is mediating with the insurance company for a settlment through court.

There fore, the company expects to get a resolution to this in the current financial year.

Status: - The company has optioned to for settlement through filing joint memo before the court for the settlement of the claim. The actual settlement will be treated as income in the year in which it is settled as per applicable accounting standard. The total claim amount for which suit filed is Rs. 8,97,19,415/-. We are maintaining the Claim receivable as Re.1/- in our books.

Machinery Claim:

Based on the petition filed by the Company, the High Court ordered appointment of arbitrator for adjudication of the disputes between the parties. Later the Supreme Court of India overturned the ruling based on appeal challenging it by the insurance Company. In view of this the Company has filed fresh suit in High Court against the repudiation of the claim. The court started functioning from 03.02.2021 hence the suit was filed during the period of 2021-22 for the settlement of remaining amount plus interest at the rate of 12% calculated on Rs. 1,78,59,593/- from the date of plaint till realization. The first hearing was started on 31.03.2022 before Honourable Madras High Court as suit for claim and we had the last hearing on 18.09.2024. The Company is confident that the merits of the case are in our favor and when the case is heard by the Court it will be having a better chance to put the facts.

Status: - The Company has written off a sum of RS. 178 Lakhs on the insurance claim receivable for machinery, owing to continual on hearing of legal matters and lapse of time much more than the expectation by the company even though the company is convinced about the veracity of the claim. The actual settlement will be treated as income in the year in which it is settled as per applicable accounting standard. We are maintaining the Claim receivable as Re.1/- in our books.

Wet Material Claim:

Brief: - With regard to Wet claim the matter pertains to marine insurance claim for policy taken with M/S Tata AIG General Insurance Ltd pending before State Consumer Commission filed on August,2016, the dispute pertains to repudiation of entire claim worth Rs. 34,47,140 /-. The claim is due to condensation and fungal growth on "clean bags" sent to one of our customer at Dubai, where else at the time of loading the cargo was dry and the shipment was exposed to high seas for 11 days. The surveyor appointed by defendant stated in its report that the bags must be exposed to water or condensed bags must have been loaded in the container due to wetness inside the container.

Status: The matter was listed for mediation talk, but the matter was not settled through mediation, hence the case has been moved to State Consumer forum. We had our last hearing on 21st November 2023. The matter is under argument stage. The company has written off sum of Rs.31,59,144/- of the insurance claim receivable for wet materials against marine insurance. The actual settlement will be treated as income in the year in which it is settled as per applicable accounting standard. We are maintaining the Claim receivable as Re.1/- in our books. The Total amount for which suit filed is Rs. 45,47,140/- (Inclusive compensation and cost of suit). An order was received on 24th May 2025 dismissing the claim on the grounds that the appropriate forum for adjudication is the civil court, not the consumer forum. The compnay will be intiating suitable proceeding in the civil court

Defined Benefit Plans:-Gratuity: -

The following table sets forth the status of the Gratuity Plan of the Company and the amount recognized in the Balance Sheet and Statement of Profit and Loss. The Gratuity liability is covered by a Master Policy taken out with LIC of India under the Cash Accumulation scheme.

The estimates of future salary increases, considered in actuarial valuation, takes account of inflation, seniority, promotion and other relevant factors such as supply and demand in the employment market.

Notes:

(a) Estimates of future salary increase take account of inflation, seniority, promotion and other relevant factors.

(b) The discount rate is based on the prevailing market yields of Government of India Bonds as at the Balance Sheet date for the estimated term of the obligation.

(c) The Company''s gratuity funds are managed by the Life Insurance Corporation of India and therefore the composition of the fund assets in not presently ascertained.

9. Segmental Reporting

Company''s business segments are as under:

Manufacturing:

Manufacture of Flexible intermediate bulk container packaging material used for industrial purposes.

Trading:

Trading of Polymers.

Segment Accounting Policies:

a. Segment accounting disclosures are in line with accounting policies of the Company.

b. Segment Revenue includes Sales and other income directly identifiable with / allocable to the segment.

c. Expenses that are directly identifiable with allocable to segments are considered for determining the Segment Result.

d. Major portion of segment liabilities and Assets relates to manufacturing segment

e. Regrouping done wherever necessary.

12. Financial Instruments A. Capital risk management

The capital structure of the company consists of debt, cash and cash equivalents and equity attributable to equity shareholders of the company which comprises issued share capital and accumulated reserves disclosed in the Statement of Changes in Equity.

The company''s capital management objective is to achieve an optimal weighted average cost of capital while continuing to safeguard the company''s ability to meet its liquidity requirements (including its commitments in respect of capital expenditure) and repay loans as they fall due.

B. Financial Risk Management a) Market risk

The company''s activities expose it primarily to the financial risk of changes in interest rates. There have been no changes to the company''s exposure to market risk or the manner in which it manages and measures the risk in recent past.

i) Currency risk

The company''s exposure arises mainly on import (of raw material and capital items). Management uses certain derivative instruments to manage its exposure to the foreign currency risk. Foreign currency transactions are managed within approved policy parameters.

The carrying amounts of the Company''s foreign currency denominated monetary assets and monetary liabilities at the end of each reporting period are as follows :

Foreign currency sensitivity analysis

The Company is mainly exposed to US Dollars, Japanese Yen and Euro

The following table details the Company''s sensitivity to a 1% increase and decrease in the INR against the relevant foreign currencies. 1% is the rate used in order to determine the sensitivity analysis considering the past trends and expectation of the management for changes in the foreign currency exchange rate. The sensitivity analysis includes the outstanding foreign currency denominated monetary items and adjusts their translation at the period end for a 1% change in foreign currency rates. A positive number below indicates a increase in profit or equity where the INR Strengthens 1% against the relevant currency. For a 1 % weakening of the INR against the relevant currency, there would be a comparable impact on the profit or equity and balance below would be negative.

1. This is mainly attributable to the exposure of payable outstanding in the above mentioned currencies to the Company at the end of the reporting period.

i) Interest rate risk

The company is exposed to interest rate risk as the company borrows funds at both fixed and floating interest rates. The risk is managed by the company by maintaining an appropriate mix between fixed and floating rate borrowings.

ii) Credit risk

Credit risk refers to the risk that counterparty will default on its contractual obligations resulting in financial loss to the Company. The Company has adopted a policy of only dealing with creditworthy counterparties and obtaining advances, where appropriate, as a means of mitigating the risk of financial loss from defaults. The Company uses other publicly available financial information and its own trading records to rate its major customers. The Company''s exposure and the credit ratings of its counterparties are continuously monitored.

Trade receivables consist of a large number of customers, concentrated in the Chemicals, Pharmaceuticals and Minerals industry. Ongoing credit evaluation is performed on the financial condition of accounts receivable and, where appropriate, advances are received from customers.

At 31st March 2025 the company did not consider there to be any significant concentration of credit risk which had not been adequately provided for. The carrying amount of the financial assets recorded in the financial statements, grossed up for any allowances for losses, represents the maximum exposure to credit risk.

iii) Liquidity Risk

The company manages liquidity risk by maintaining adequate reserves and banking facilities, by continuously monitoring forecast and actual cash flows and by matching the maturity profiles of financial assets and liabilities for the company. The company has established an appropriate liquidity risk management framework for it''s short term, medium term and long term funding requirement.

The management considers that the carrying amount of financial assets and financial liabilities recognised at amortised cost in the balance sheet approximates their fair value.

Level 1 - Quoted price in an active market.

Level 2 - Discounted cash flow. Future cash flows are estimated based on forward exchange rates and contract rates, discounted at a rate that reflects the credit risk of various counterparties.

Level 3 - Discounted cash flow method is used to capture the present value of the expected future economic benefits that will flow to the company.

No provision has been made in the accounts in respect of disputed amount of sales tax as the company has contested the case and is hopeful of getting the verdict in its favor. Certain claims/show cause notices disputed have neither been considered as contingent liability nor acknowledged as claim, based on the opinion obtained, since the possibility of loss is remote.

16. Balances of sundry debtors, creditors, advances & deposits received/paid are as per the books of accounts. Letters have been sent seeking confirmation of balances and replies from most of the cases are awaited. Adjustments, if any, will be made in the books of accounts on receipt of such confirmations.

18.Leases:

A lessee shall disclose the following amounts for the reporting period:

(a) depreciation charge for right-of-use assets by class of underlying asset;

(b) interest expense on lease liabilities;

(c) the expense relating to short-term leases accounted for applying paragraph 6 of Ind AS-116. This expense need not include the expense relating to leases with a lease term of one month or less;

(d) the expense relating to leases of low-value assets accounted for applying paragraph 6 of Ind AS-116. This expense shall not include the expense relating to short-term leases of low-value assets included in paragraph 53(c);

(e) the expense relating to variable lease payments not included in the measurement of lease liabilities;

(f) income from subleasing right-of-use assets;

(g) total cash outflow for leases;

(h) additions to right-of-use assets;

(i) gains or losses arising from sale and leaseback transactions; and

(j) the carrying amount of right-of-use assets at the end of the reporting period by class of underlying asset.

A lessee shall provide the disclosures specified in paragraph 53 of Ind AS-116, in a tabular format, unless another format is more appropriate. The amounts disclosed shall include costs that a lessee has included in the carrying amount of another asset during the reporting period.

19. Additional Regulatory Information:

a. a. The title deeds of all the immovable properties (other than properties where the Company is the lessee and the lease agreements are duly executed in favour of the lessee) are held in the name of the Company.

b. b. The Company has not revalued its Property, Plant and Equipment (including Right of use assets) or intangible assets during the year ended 31 March, 2025.

c. c. The company has not given any Loans or Advances in the nature of loans to promoters, directors, KMPs and their related parties (as defined under Companies Act, 2013,) either severally or jointly with any other person.

d. d. No Intangible assets under development during the year.

e. e. Quarterly statements of current assets filed with banks and financial institutions for fund borrowed from those banks and financial institutions on the basis of security of

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

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

i. There are no transactions and / or balance outstanding with companies struck off under section 248 of the Companies Act, 2013.

j. The company does not have any investments through more than two layers of investment companies as per section 2(87) (cd) and section 186 of Companies Act, 2013.

k. No proceedings have been initiated during the year or are pending against the Company as at 31 March 2024 for holding any benami property under the Benami Transactions (Prohibition) Act, 1988 (as amended in 2016) and rules made thereunder.

l. The Company has not been declared wilful defaulter by any bank or financial institution or government or any government authority.

m. There were no transactions relating to previously unrecorded income that were surrendered or disclosed as income in the tax assessments under the Income Tax Act, 1961 (43 of 1961) during the year.

PREVIOUS YEAR FIGURES

Previous year figures have been restated wherever required.

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Mar 31, 2024

Clause (e)- Rights, Preference and Restrictions attached to shares Equity Shares:

"The company has one class of equity shares having a par value of Rs. 10 each. Each shareholder is eligible for one vote per share held. The dividend (if any) proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing annual general meeting."

Clause (f)- Shares held by holding company or its ultimate holding company including their subsidiaries- Not applicable

Clause (g)- Particulars of shares held by shareholder holding more than 5% of the aggregate shares in the company:

Clause (h)- Shares reserved for issue under options and contracts/commitments for the sale of shares- Not applicable

Clause (i)- Shares allotted in the preceding five years without payment being received in cash/by way of bonus shares/ shares bought back- Not Applicable

3. Dues to Micro, Small and Medium Enterprises:

The management has written to vendors requesting them to inform whether they would fall under the preview of Micro, Small and Medium Enterprises Act, 2001. Based on disclosure received, there is no amount payable to such enterprises as at 31^st March 2024. The above information has been determined to the extent such parties have been identified on the basis of information available with the Company which has been relied upon by the auditors.

4. Status on Fire accident claim:Stock Claim

Brief: The claim relates to fire accident in the year 2013 at one of the units. Company is pursuing the suit filed at High Court in the year 2018 against repudiation of the claim by insurance company. The Company

Secretary has been attending the court hearings and the last hearing of this particular case has happened on 05.03.2024. The cross examination will continue and will hopefully be completed at the earliest possible time. Upon completion of the cross examination both the lawyers will be advancing written submissions. In our understanding a verdict on the case may be delivered before end of this calendar year.

Status: The matter is pending for continuation of cross examination. However, since the time granted for cross examination has expired, the matter is awaited to be listed before the Judge for further extension. The actual settlement will be treated as income in the year in which it is settled as per applicable accounting standard. The total claim amount for which suit filed is Rs. 8,97,19,415/-. We are maintaining the Claim receivable as Re.1/- in our books.

Machinery Claim:

Based on the petition filed by the Company, the High Court ordered appointment of arbitrator for adjudication of the disputes between the parties. Later the Supreme Court of India overturned the ruling based on appeal challenging it by the insurance Company. In view of this the Company has filed fresh suit in High Court against the repudiation of the claim. The court started functioning from 03.02.2021 hence the suit was filed during the period of 2021-22 for the settlement of remaining amount plus interest at the rate of 12% calculated on Rs. 1,78,59,593/- from the date of plaint till realization. The first hearing was started on 31.03.2022 before Honourable Madras High Court as suit for claim and we had the last hearing. The Company is confident that the merits of the case are in our favor and when the case is heard by the Court it will be having a better chance to put the facts.

Status: - The Company has written off a sum of RS. 178 Lakhs on the insurance claim receivable for machinery, owing to continual on hearing of legal matters and lapse of time much more than the expectation by the company even though the company is convinced about the veracity of the claim. The actual settlement will be treated as income in the year in which it is settled as per applicable accounting standard. We are maintaining the Claim receivable as Re.1/- in our books.

Wet Material Claim:

Brief: With regard to Wet claim the matter pertains to marine insurance claim for policy taken with M/S Tata AIG General Insurance Ltd pending before State Consumer Commission filed on August,2016, the dispute pertains to repudiation of entire claim worth Rs. 34,47,140 /-. The claim of is due to condensation and fungal growth on "clean bags" sent to one of our customer at Dubai, were else at the time of loading the cargo was dry and the shipment was exposed to high seas for 11 days. The surveyor appointed by defendant stated in its report that the bags must be exposed to water or condensed bags must have been loaded in the container due to wetness inside the container.

Status: The matter was listed for mediation talk, but the matter was not settled through mediation, hence the case has been moved to State Consumer forum. We had our last hearing on 21st November 2023. The matter is under argument stage. The company has written off sum of Rs.31,59,144/- of the insurance claim receivable for wet materials against marine insurance. The actual settlement will be treated as income in the year in which it is settled as per applicable accounting standard. We are maintaining the Claim receivable as Re.1/- in our books. The Total amount for which suit filed is Rs. 45,47,140 /- (Inclusive compensation and cost of suit).

Defined Benefit Plans:-Gratuity: -

The following table sets forth the status of the Gratuity Plan of the Company and the amount recognized in the Balance Sheet and Statement of Profit and Loss. The Gratuity liability is covered by a Master Policy taken out with LIC of India under the Cash Accumulation scheme.

The estimates of future salary increases, considered in actuarial valuation, takes account of inflation, seniority, promotion and other relevant factors such as supply and demand in the employment market.

Notes:

(a) Estimates of future salary increase take account of inflation, seniority, promotion and other relevant factors.

(b) The discount rate is based on the prevailing market yields of Government of India Bonds as at the Balance Sheet date for the estimated term of the obligation.

(c) The Company''s gratuity funds are managed by the Life Insurance Corporation of India and therefore the composition of the fund assets in not presently ascertained.

9. Segmental Reporting

Company''s business segments are as under:

Manufacturing:

Manufacture of Flexible intermediate bulk container packaging material used for industrial purposes. Trading:

Trading of Polymers.

Segment Accounting Policies:

a. Segment accounting disclosures are in line with accounting policies of the Company.

b. Segment Revenue includes Sales and other income directly identifiable with / allocable to the segment.

c. Expenses that are directly identifiable with allocable to segments are considered for determining the Segment Result.

d. Major portion of segment liabilities and Assets relates to manufacturing segment

e. Regrouping done wherever necessary.

12. Financial Instruments A. Capital risk management

The capital structure of the company consists of debt, cash and cash equivalents and equity attributable to equity shareholders of the company which comprises issued share capital and accumulated reserves disclosed in the Statement of Changes in Equity.

The company''s capital management objective is to achieve an optimal weighted average cost of capital while continuing to safeguard the company''s ability to meet its liquidity requirements (including its commitments in respect of capital expenditure) and repay loans as they fall due.

B. Financial Risk Management a) Market risk

The company''s activities expose it primarily to the financial risk of changes in interest rates. There have been no changes to the company''s exposure to market risk or the manner in which it manages and measures the risk in recent past.

i) Currency risk

The company''s exposure arises mainly on import (of raw material and capital items). Management uses certain derivative instruments to manage its exposure to the foreign currency risk. Foreign currency transactions are managed within approved policy parameters.

The carrying amounts of the Company''s foreign currency denominated monetary assets and monetary

Foreign currency sensitivity analysis

The Company is mainly exposed to US Dollars.

The following table details the Company''s sensitivity to a 1% increase and decrease in the INR against the relevant foreign currencies. 1% is the rate used in order to determine the sensitivity analysis considering the past trends and expectation of the management for changes in the foreign currency exchange rate. The sensitivity analysis includes the outstanding foreign currency denominated monetary items and adjusts their translation at the period end for a 1% change in foreign currency rates. A positive number below indicates a increase in profit or equity where the INR Strengthens 1% against the relevant currency. For a 1 % weakening of the INR against the relevant currency, there would be a comparable impact on the profit or equity and balance below would be negative.

This is mainly attributable to the exposure of payable outstanding in the above mentioned currencies to the Company at the end of the reporting period.

i) Interest rate risk

The company is exposed to interest rate risk as the company borrows funds at floating interest rates linked with REPO rates. The risk is managed by the company by maintaining an appropriate floating rate borrowings.

ii) Credit risk

Credit risk refers to the risk that counterparty will default on its contractual obligations resulting in financial loss to the Company. The Company has adopted a policy of only dealing with creditworthy counterparties and obtaining advances, where appropriate, as a means of mitigating the risk of financial loss from defaults. The Company uses other publicly available financial information and its own trading records to rate its major customers. The Company''s exposure and the credit ratings of its counterparties are continuously monitored.

Trade receivables consist of a large number of customers, concentrated in the Chemicals, Pharmaceuticals and Minerals industry, Automobile industry, petro chemical, Agro and Food industry. Ongoing credit evaluation is performed on the financial condition of accounts receivable and, where appropriate, advances are received from customers.

At 31^st March 2024 the company did not consider there to be any significant concentration of credit risk which had not been adequately provided for. The carrying amount of the financial assets recorded in the financial statements, grossed up for any allowances for losses, represents the maximum exposure to credit risk.

iii) Liquidity Risk

The company manages liquidity risk by maintaining adequate reserves and banking facilities, by continuously monitoring forecast and actual cash flows and by matching the maturity profiles of financial assets and liabilities for the company. The company has established an appropriate liquidity risk management framework for it''s short term, medium term and long term funding requirement.

ii. Fair value of financial assets / liabilities (other than investment in subsidiaries) that are not measured at fair value

The management considers that the carrying amount of financial assets and financial liabilities recognised at amortised cost in the balance sheet approximates their fair value.

Level 1 - Quoted price in an active market.

Level 2 - Discounted cash flow. Future cash flows are estimated based on forward exchange rates and

contract rates, discounted at a rate that reflects the credit risk of various counterparties.

Level 3 - Discounted cash flow method is used to capture the present value of the expected future

economic benefits that will flow to the company.

13. Contingent Liabilities		(Rs. in Lakhs)
Contingent Liabilities not provided for	As at 31st March, 2024	As at 31st March, 2023
a. In respect of guarantees given by the Company	702.00	600.00
b. Letter of credit for purchase of raw-materials	548.20	247.81
c. Claims not acknowledged as debts	Nil	Nil
d. Estimated amount of contracts remaining to be executed on Capital accounts, not provided for	Nil	Nil
e. Disputed amount on GST	51.62	-
f. Disputed amount on Income Tax	100.23	98.76

No provision has been made in the accounts in respect of disputed amount of sales tax as the company has contested the case and is hopeful of getting the verdict in its favor. Certain claims/show cause notices disputed have neither been considered as contingent liability nor acknowledged as claim, based on the

opinion obtained, since the possibility of loss is remote.

16. Balances of sundry debtors, creditors, advances & deposits received/paid are as per the books of accounts. Letters have been sent seeking confirmation of balances and replies from most of the cases are awaited. Adjustments, if any, will be made in the books of accounts on receipt of such confirmations.

18. Leases:

A lessee shall disclose the following amounts for the reporting period:

(a) depreciation charge for right-of-use assets by class of underlying asset;

(b) interest expense on lease liabilities;

(c) the expense relating to short-term leases accounted for applying paragraph 6 of Ind AS-116. This expense need not include the expense relating to leases with a lease term of one month or less;

(d) the expense relating to leases of low-value assets accounted for applying paragraph 6 of Ind AS-116. This expense shall not include the expense relating to short-term leases of low-value assets included in paragraph 53(c);

(e) the expense relating to variable lease payments not included in the measurement of lease liabilities;

(f) income from subleasing right-of-use assets;

(g) total cash outflow for leases;

(h) additions to right-of-use assets;

(i) gains or losses arising from sale and leaseback transactions; and

(j) the carrying amount of right-of-use assets at the end of the reporting period by class of underlying asset.

A lessee shall provide the disclosures specified in paragraph 53 of Ind AS-116, in a tabular format, unless

another format is more appropriate. The amounts disclosed shall include costs that a lessee has included in

the carrying amount of another asset during the reporting period.

19. Additional Regulatory Information:

a. The title deeds of all the immovable properties (other than properties where the Company is the lessee and the lease agreements are duly executed in favour of the lessee) are held in the name of the Company.

b. The Company has not revalued its Property, Plant and Equipment (including Right of use assets) or intangible assets during the year ended 31 March, 2024.

c. The company has not given any Loans or Advances in the nature of loans to promoters, directors, KMPs and their related parties (as defined under Companies Act, 2013,) either severally or jointly with any other person.

d. No Intangible assets under development during the year.

e. Quarterly statements of current assets filed with banks and financial institutions for fund borrowed from those banks and financial institutions on the basis of security of current assets are in agreement with the

books of account.

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

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

i. There are no transactions and / or balance outstanding with companies struck off under section 248 of the Companies Act, 2013.

j. The company does not have any investments through more than two layers of investment companies as per section 2(87) (cd) and section 186 of Companies Act, 2013.

k. No proceedings have been initiated during the year or are pending against the Company as at 31 March 2024 for holding any benami property under the Benami Transactions (Prohibition) Act, 1988 (as amended in 2016) and rules made thereunder.

l. The Company has not been declared wilful defaulter by any bank or financial institution or government or any government authority.

m. There were no transactions relating to previously unrecorded income that were surrendered or disclosed as income in the tax assessments under the Income Tax Act, 1961 (43 of 1961) during the year

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Mar 31, 2015

1. CORPORATE INFORMATION

As a part of the Rs.1,500 million BLISS Group of companies, Jumbo Bag Ltd. was established in the year 1990. Started with an initial capacity of 7,20,000 jumbo bags (FIBCs), we now have the capacity to manufacture over 3.6 million bags per annum and this has propelled us to the position of market leaders.

2.The previous period figures have been regrouped/reclassified, wherever necessary to conform to the current presentation.

Clause (e) – Rights, preference and restrictions attached to shares

Equity Shares:

The Company has one class of equity shares having a par value of Rs.10 each. Each share holder is eligible for one vote per share held. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing annual general meeting.

3. Earnings per share

The basic and diluted earnings per share are computed by dividing the net profit attributable to equity shareholders for the year by the weighted average number of equity shares outstanding during the year. The Company did not have any potentially dilutive equity shares outstanding during the year.

4. Depreciation

During the year, the Company has reassessed the depreciation for every asset based on their useful life as prescribed under part C of schedule II of the Companies Act, 2013. The depreciation for the assets whose useful life has expired and the additional depreciation till 31st March 2014 for the live assets totaling to Rs. 236.11 lakhs is recognized in Reserves & Surplus. The depreciation for the year 2014-15 for the live assets amounting to Rs. 170.84 lakhs is charged to Statement of Profit and Loss.

5. Investments

Long term Investments are valued at cost less provision for diminution in value other than temporary, if any.

6. Employee Benefits

i Short Term - Short term employee benefits are recognized as an expense as per the Company's Scheme based on expected obligations. ii. Post Retirement

Post retirement benefits comprise of provident fund, superannuation and gratuity which are accounted for as follows:

a) Provident fund

This is a defined contribution plan. Contributions in respect of staff and workers are remitted to provident fund authorities in accordance with the relevant statute and are charged to profit and loss statement as and when due. The Company has no further obligations for future provident fund benefits in respect of these employees other than its annual contributions.

b) Superannuation

This is a defined contribution plan. The Company makes contribution as per the scheme to Superannuation Fund administered by Life Insurance Corporation of India. The Company has no further obligation of future superannuation benefits other than its annual contributions and recognizes such contributions as expense as and when due.

c) Gratuity

This is a defined benefit plan. Provision for gratuity is made based on actuarial valuation using projected unit credit method. Actuarial gains and losses, comprising of experience adjustments and the effects of changes in actuarial assumptions, are recognized immediately in the profit and loss statement as income or expense

7. Deferred Tax Liability

Deferred Tax resulting from timing difference between book and Tax profit is accounted for under liability method, at the current rate of tax, to the extent, the timing differences are expected to crystallize. The deferred tax charge or credit is recognized using prevailing enacted or substantively enacted tax rate. Where there is unabsorbed depreciation or carried forward losses, deferred tax assets are recognized only if there is virtual certainty of realization of such assets. Deferred tax liabilities/assets are reviewed at each balance sheet date based on the law in force and shown net of assets/liabilities in the books.

8. Leases

Leases are classified as finance or operating leases depending upon the terms of the lease agreements. Assets held under finance leases are recognized as assets of the Company on the date of acquisition and depreciated over their estimated useful life or period of lease. Initial direct costs under the financial lease are included as a part of the amount recognized as asset under the finance lease.

Rentals payable under operating leases are treated as revenue expenses as and when incurred with reference to terms of agreement.

Operating leases

The company is obligated under cancelable operating leases for Jumbo Bag Ltd, Athipedu factory rent which is renewable at the options of both the lessor and the lessee. The expense under the contracted lease amounts to Rs.36.00 lakhs (previous year Rs.80.22 lakhs) is recognized in the statement of profit and loss.

9. Custom duty

Custom duty is accounted as and when paid and on actual.

10. Borrowing Costs

As per the Accounting Standard 16 (AS 16), borrowing costs that are directly attributable to the cost of acquisition, construction, production of a qualifying asset are capitalized as a part of cost of such asset till the asset is installed/ put to use. Cost that are not directly attributable to the qualifying the asset are determined by applying a weighted average rate and are capitalized as a part of the cost of asset of such qualifying asset till the time asset is ready to use/ installed

11. Dues to Micro, Small and Medium Enterprises

The management has written to vendors requesting them to inform whether they would fall under the preview of Micro, Small and Medium Enterprises Act, 2001. Based on disclosure received, amount payable to such enterprises as at 31st March 2015 is Nil. The above information has been determined to the extent such parties have been identified on the basis of information available with the Company which has been relied upon by the auditors.

12. Provisions made with regard to Fire Accident

There is a pending claim amount recoverable to the extent of Rs.897 Lakhs with respect to the Fire Accident that the company faced at its Athipedu Unit. During the month of November, 2014, the company had received a letter of repudiation from one of the insurance company against the claim made in respect of loss of stock. The company is taking remedial measures and seeking expert legal advice to recover the claim money.

Based on the legal advice received the stand taken by the insurance company is not tenable and the company has already filed the objection/appeal against the said letter. The Company has made various representations to the insurance company to facilitate redressal of this claim through grievance mechanism laid down as per IRDA Guidelines. However, the insurance company has been denying an opportunity to present our case to them. The company has obtained legal advice on the matter and has approached the Honorable Court seeking appropriate directions to the Insurance Company for appointment of an Arbitrator to resolve this matter. The Company is confident that based on the facts available on record the process of arbitration will render justice to the Company's application. This has been dealt appropriately in the books of accounts.

13. Segmental Reporting

Information given in accordance with the requirement of Accounting Standard 17, on Segment Reporting. Company's business segments are as under:

Manufacturing:

Manufacture of Flexible intermediate bulk container packaging material used for industrial purposes. Trading:

Trading of Polymers.

Segment Accounting Policies:

a. Segment accounting disclosures are in line with accounting policies of the Company.

b. Segment Revenue includes Sales and other income directly identifiable with / allocable to the segment.

c. Expenses that are directly identifiable with allocable to segments are considered for determining the Segment Result.

d. Major portion of segment liabilities and Assets relates to manufacturing segment

e. The company has no Secondary Reportable Segment.

f. Regrouping done wherever necessary.

14. Contingent Liabilities (Rs. in lakhs)

Contingent Liabilities not provided for 31st March 2015 31st March014

a. In respect of guarantees given by the 629.71 510.00 Company

b. Letter of credit for purchase of 695.36 49.89 raw-materials

c. Claims not acknowledged as debts Nil Nil

d. Estimated amount of contracts remaining Nil Nil to be executed on Capital accounts, not provided for

e. Disputed amount of Central Excise 53.45 53.45

f. Disputed amount on Income Tax 159.27 159.27

g. Disputed TDS 11.23 6.51

No provision has been made in the accounts in respect of disputed amount of sales tax as the company has contested the case and is hopeful of getting the verdict in its favor. Certain claims/show cause notices disputed have neither been considered as contingent liability nor acknowledged as claim, based on the opinion obtained, since the possibility of loss is remote.

15. Balances of sundry debtors, creditors, advances & deposits received/paid are as per the books of accounts. Letters have been sent seeking confirmation of balances and replies from most of the cases are awaited. Adjustments, if any, will be made in the books of accounts on receipt of such confirmations.

16. PREVIOUS YEAR FIGURES

Previous year's figures have been regrouped/ recast wherever necessary to confirm to this year's classification.

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Mar 31, 2014

1. Contingent Liabilities



Contingent Liabilities not As at As at provided for 31st March, 2014 31st March,2013 (Rs. in Lacs) (Rs. in Lacs)

a. In respect of guarantees given by the Company 510.00 510.00

b. Letter of credit for purchase of raw-materials 49.89 87.32

c. Claims not acknowledged as debts Nil Nil

d. Estimated amount of contracts remaining to be executed Nil Nil on Capital accounts, not provided for

e. Disputed amount of Central Excise 53.45 269.54

f. Disputed amount on Income Tax 159.27 105.89

g. Disputed TDS 6.51 6.33

No provision has been made in the accounts in respect of disputed amount of sales tax as the company has contested the case and is hopeful of getting the verdict in its favor. Certain claims/show cause notices disputed have neither been considered as contingent liability nor acknowledged as claim, based on the opinion obtained, since the possibility of loss is remote.

2. Balances of sundry debtors, creditors, advances & deposits received/paid are as per the books of accounts. Letters have been sent seeking confi rmation of balances and replies from most of the cases are awaited. Adjustments, if any, will be made in the books of accounts on receipt of such confirmations.

The relevant information regarding Turnover, Production, Opening Stock and Closing Stock are given only in aggregate and no detailed breakup thereof is given as the items are too numerous to be conveniently grouped.

3. PREVIOUS YEAR FIGURES

Previous year''s figures have been regrouped/ recast wherever necessary to confi rm to this year''s classification.

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Mar 31, 2013

1. Earnings per share

The basic and diluted earnings per share are computed by dividing the net profi t attributable to equity shareholders for the year by the weighted average number of equity shares outstanding during the year. The Company did not have any potentially dilutive equity shares outstanding during the year.

2. Investments

Long term Investments are valued at cost less provision for diminution in value other than temporary, if any.

3. Employee Benefi ts

i Short Term - Short term employee benefi ts are recognized as an expense as per the Company''s Scheme based on expected obligations.

ii. Post Retirement:

Post retirement benefi ts comprise of provident fund, superannuation and gratuity which are accounted for as follows:

a) Provident fund

This is a defi ned contribution plan. Contributions in respect of staff and workers are remitted to provident fund authorities in accordance with the relevant statute and are charged to profi t and loss statement as and when due. The Company has no further obligations for future provident fund benefi ts in respect of these employees other than its annual contributions.

b) Superannuation

This is a defi ned contribution plan. The Company makes contribution as per the scheme to superannuation Fund administered by Life Insurance Corporation of India. The Company has no further obligation of future superannuation benefi ts other than its annual contributions and recognizes such contributions as expense as and when due.

c) Gratuity

This is a defi ned benefi t plan. Provision for gratuity is made based on actuarial valuation using projected unit credit method. Actuarial gains and losses, comprising of experience adjustments and the effects of changes in actuarial assumptions, are recognized immediately in the profi t and loss statement as income or expense.

4. Deferred Tax Liability

Deferred Tax resulting from timing difference between book and Tax profi t is accounted for under liability method, at the current rate of tax, to the extent, the timing differences are expected to crystallize. The deferred tax charge or credit is recognized using prevailing enacted or substantively enacted tax rate. Where there is unabsorbed depreciation or carried forward losses, deferred tax assets are recognized only if there is virtual certainty of realization of such assets. Deferred tax liabilities/assets are reviewed at each balance sheet date based on the law in force and shown net of assets/liabilities in the books.

5. Leases

Leases are classifi ed as fi nance or operating leases depending upon the terms of the lease agreements. Assets held under fi nance leases are recognized as assets of the Company on the date of acquisition and depreciated over their estimated useful life or period of lease. Initial direct costs under the fi nancial lease are included as a part of the amount recognized as asset under the fi nance lease.

Rentals payable under operating leases are treated as revenue expenses as and when incurred with reference to terms of agreement.

Operating leases

The company is obligated under cancellable operating leases for Jumbo Bag Ltd, Athipedu factory rent which are renewable at the options of both the lessor and the lessee. The expense under the contracted lease amounts to Rs. 87.45/-lakhs (previous year Rs.79.73/- lakhs) is recognized in the profi t & loss statement.

6. Custom duty

Custom duty is accounted as and when paid and on actual.

7. Borrowing Costs

As per the Accounting Standard 16 (AS 16), borrowing costs that are directly attributable to the cost of acquisition, construction, production of a qualifying asset are capitalized as a part of cost of such asset till the asset is installed/ put to use. Cost that are not directly attributable to qualifying the asset are determined by applying a weighted average rate and are capitalized as a part of the cost of asset of such qualifying asset till the time asset is ready to use/ installed.

8. Dues to Micro, Small and Medium Enterprises:

The management has written to vendors requesting them to inform whether they would fall under the purview of Micro, Small and Medium Enterprises Act, 2001. Based on disclosure received, amount payable to such enterprises as at 31st March 2013 is Nil. The above information has been determined to the extent such parties have been identifi ed on the basis of information available with the Company which has been relied upon by the auditors.

9. Defined Contribution Plans:-

(a) Contribution to Provident Fund : 19.34/- lakhs

(b) Contribution to Superannuation Fund : 7.68/-lakhs

Defi ned Benefi t Plans:- Gratuity:- 7.94/- lakhs

The Gratuity liability is covered by a Master Policy taken out with LIC of India under the Cash Accumulation scheme. The company during the year has done actuarial valuation as on 31.03.2013 and the estimated liability amounted to Rs.7.94/-Lakhs which is debited to P & L Statement.

Retirement Benefi ts:

Disclosure as required by Accounting Standard (AS) – 15 (Revised 2005) "Employee Benefi ts" issued by the Institute of Chartered Accountants of India are given below:

10. Segmental Reporting

Information given in accordance with the requirement of Accounting Standard 17, on Segment Reporting. Company''s business segments are as under:

Manufacturing:

Manufacture of Flexible intermediate bulk container packaging material used for industrial purposes.

Trading:

Trading of Polymers.

Segment Accounting Policies:

a. Segment accounting disclosures are in line with accounting policies of the Company.

b. Segment Revenue includes Sales and other income directly identifi able with / allocable to the segment.

c. Expenses that are directly identifi able with allocable to segments are considered for determining the Segment Result.

d. Major portion of segment liabilities and Assets relates to manufacturing segment

e. The company has no Secondary Reportable Segment.

f. Regrouping done wherever necessary.

11. Balances of sundry debtors, creditors, advances & deposits received/paid are as per the books of accounts. Letters have been sent seeking confi rmation of balances and replies from most of the cases are awaited. Adjustments, if any, will be made in the books of accounts on receipt of such confi rmations.

12. PREVIOUS YEAR FIGURES

Previous year''s fi gures have been regrouped/ recast wherever necessary to confi rm to this year''s classifi cation.

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Mar 31, 2012

Clause (a) - Rights preferences and restrictions attached to shares: Equity Shares:

The Company has one class of equity shares having a par value of Rs.10 each. Each Share holder is eligible for one vote per share held. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing annual general meeting.

Clause (b) - Shares held by Holding company and its subsidiaries: Not Applicable.

Clause (c) - Shares reserved for issue under options and contracts/commitments for the sale of shares/ disinvestment, including the terms and amounts. - Not applicable.

Clause (d) - Shares allotted in the preceding five years without payment being received in cash: Not applicable.

Clause (e) - Terms of any securities convertible into issued along with the earliest date of conversion in descending order starting from the farthest such date – Not applicable

Clause (f) - Calls unpaid - Not applicable.

1. Earnings per share

The basic and diluted earnings per share are computed by dividing the net profit attributable to equity shareholders for the year by the weighted average number of equity shares outstanding during the year. The Company did not have any potentially dilutive equity shares outstanding during the year.

2. Investments

Long term investments are valued at cost less provision for diminution in value other than temporary, if any.

3. Employee Benefits

i Short Term - Short term employee benefits are recognized as an expense as per the Company’s Scheme based on expected obligations.

ii. Post Retirement.

Post retirement benefits comprise of provident fund, superannuation and gratuity which are accounted for as follows:

a) Provident fund

This is a defined contribution plan. Contributions in respect of staff and workers are remitted to provident fund authorities in accordance with the relevant statute and are charged to profit and loss statement as and when due. The Company has no further obligations for future provident fund benefits in respect of these employees other than its annual contributions.

b) Superannuation

This is a defined contribution plan. The Company makes contribution as per the scheme to superannuation Fund administered by Life Insurance Corporation of India. The Company has no further obligation of future superannuation benefits other than its annual contributions and recognizes such contributions as expense as and when due.

c) Gratuity

This is a defined benefit plan. Provision for gratuity is made based on actuarial valuation using projected unit credit method. Actuarial gains and losses, comprising of experience adjustments and the effects of changes in actuarial assumptions, are recognized immediately in the profit and loss statement as income or expense

4. Deferred Tax Liability

Deferred Tax resulting from timing difference between book and Tax profit is accounted for under liability method, at the current rate of tax, to the extent, the timing differences are expected to crystallize. The deferred tax charge or credit is recognized using prevailing enacted or substantively enacted tax rate. Where there is unabsorbed depreciation or carried forward losses, deferred tax assets are recognized only if there is virtual certainty of realization of such assets. Deferred tax liabilities/assets are reviewed at each balance sheet date based on the law in force and shown net of assets/liabilities in the books.

5. Leases:

Leases are classified as finance or operating leases depending upon the terms of the lease agreements. Assets held under finance leases are recognized as assets of the Company on the date of acquisition and depreciated over their estimated useful life or period of lease. Initial direct costs under the financial lease are included as a part of the amount recognized as asset under the finance lease.

Rentals payable under operating leases are treated as revenue expenses as and when incurred with reference to terms of agreement.

6. Custom duty

Custom duty is accounted as and when paid and on actuals.

7. Borrowing Costs

As per the Accounting Standard 16 ( AS 16) , borrowing costs that are directly attributable to the cost of acquisition, construction, production of a qualifying asset are capitalized as a part of cost of such asset till the asset is installed/ put to use. Cost that are not directly attributable to the qualifying the asset are determined by applying a weighted average rate and are capitalized as a part of the cost of asset of such qualifying asset till the time asset is ready to use / installed.

8. Dues to Micro, Small and Medium Enterprises:

The management has written to vendors requesting them to inform whether they would fall under the preview of Micro, Small and Medium Enterprises Act, 2001. Based on disclosure received, amount payable to such enterprises as at 31st March 2012 is Nil. The above information has been determined to the extent such parties have been identifed on the basis of information available with the Company which has been relied upon by the auditors.

9. Leases

Operating leases

The company is obligated under cancellable operating leases for Jumbo Bag Ltd, Athipedu factory rent which are renewable at the options of both the lessor and the lessee. The expense under the contacted lease amounts to Rs. 79.73/-Lakhs (previous year Rs. 78.05 Lakhs) is recognized in the proft & loss statement.

DISCLOSURE UNDER AS-15

10. Defined Contribution Plans:-

(a) Contribution to Provident Fund : Rs. 16.58 Lakhs

(b) Contribution to Superannuation Fund : Rs. 4.50 Lakhs

Defined Benefit Plans:-

Gratuity:- The Gratuity liability is covered by a Master Policy taken out with LIC of India under the Cash Accumulation scheme. The company during the year has done actuarial valuation as on 31.03.2012 and the estimated liability amounted to Rs. 24.51 Lakhs which is debited to P & L statement.

Retirement Benefits:

Disclosure as required by Accounting Standard (AS) – 15 (Revised 2005) “Employee Benefi]ts” issued by the Institute of Chartered Accountants of India are given below:

11. Segmental Reporting

Information given in accordance with the requirement of Accounting Standard 17, on Segment Reporting.

Company's business segments are as under:

Manufacturing:

Manufacture of Flexible intermediate bulk container packaging material used for industrial purposes.

Trading:

Trading of Polypropylene granules which are used in the manufacture of plastics.

Segment Accounting Policies:

a. Segment accounting disclosures are in line with accounting policies of the Company.

b. Segment Revenue includes Sales and other income directly identifiable with / allocable to the segment.

c. Expenses that are directly identifiable with allocable to segments are considered for determining the Segment Result.

d. Major portion of segment liabilities and Assets relates to manufacturing segment

e. The company has no Secondary Reportable Segment.

12. Contingent Liabilities

As at As at Contingent Liabilities not provided 31st March, 31st March, for 2012 2011 (Rs. in Lakhs) (Rs. in Lakhs)

a. In respect of guarantees given by the Company 505.62 405.62

b. Letter of credit for purchase of raw-materials 108.37 194.75

c. Claims not acknowledged as debts Nil Nil

d. Estimated amount of contracts remaining to be executed 75.60 465.00 on Capital accounts, not provided for

e. Disputed amount of Central Excise 277.20 50.69

f. Disputed amount on Income Tax 106.56 33.64

g. Disputed TDS 5.99 5.14

No provision has been made in the accounts in respect of disputed amount of sales tax as the company has contested the case and is hopeful of getting the verdict in its favor. Certain claims/show cause notices disputed have neither been considered as contingent liability nor acknowledged as claim, based on the opinion obtained, since the possibility of loss is remote.

13. Balances of sundry debtors, creditors, advances & deposits received/paid are as per the books of accounts. Letters have been sent seeking confirmation of balances and replies from most of the cases are awaited. Adjustments, if any, will be made in the books of accounts on receipt of such confirmations.

14. PREVIOUS YEAR FIGURES

Till the year ended 31st March 2011, the company was using pre-revised Schedule VI to the Companies Act 1956, for preparation and presentation of fnancial statements. During the year ended 31st March 2012, the revised Schedule VI notifed under the Companies Act 1956, has become applicable to the Company. The company has reclassifed previous year fgures to conform to this year's classifcation. It signifcantly impacts presentation and disclosures made in the fnancial statements, particularly presentation of Balance Sheet.

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Mar 31, 2011

1. Contingent Liabilities (Rs. in Lakhs)

As at As at Contingent Liabilities not provided for 31st March, 2011 31st March, 2010

a. In respect of guarantees given by the Company 405.62 104.62

b. Letter of credit for purchase of raw-materials 194.75 203.88

c. Claims not acknowledged as debts Nil Nil

d. Estimated amount of contracts remaining to be 465.00 45.00 executed on Capital accounts, not provided for

e. Disputed amount of Sales Tax 2.11 2.11

f. Disputed amount of Central Excise 50.69 50.69

g. Disputed interest on Income Tax 33.64 33.64

h. Disputed TDS 5.14 -

No provision has been made in the accounts in respect of disputed amount of sales tax as the company has contested the case and is hopeful of getting the verdict in its favor. Certain claims/show cause notices disputed have neither been considered as contingent liability nor acknowledged as claim, based on the opinion obtained, since the possibility of loss is remote.

2. Terms Loan (Including Medium Term and Corporate Loans) and working capital facilities from State Bank of India and State Bank of Hyderabad are secured by pari passu charges on the fixed assets and current assets of the company and also secured by personal guarantees of directors Sri. G.Sudhakar, Sri. G.P.N.Gupta, Sri. G.Radhakrishna, further secured by personal guarantees of Sri. G.V.Gopinath and Sri. G.V.Balaji.

Term Loan from Indian Overseas Bank Ltd is secured by frst charge on the fixed assets fnanced by them and second charge on the existing fixed assets and also personal guarantees of directors Sri. G.Sudhakar, Sri. G.P.N.Gupta and Sri. G.Radhakrishna.

3. Loans and advances includes a sum of Rs.12 Lakhs misappropriated by an employee during 1998- 1999 for which no provision has been made in the accounts. The Company has got the verdict in its favour in the Criminal proceedings. The Civil Suit has not yet been disposed off and the company believes that a reliable estimate of any probable loss, if any, can be made only on its disposal.

4. Deferred Tax Liability accruing during the year aggregating to Rs.13,37,706/- (Previous year Rs.10,94,140/-) has been recognized in profit & Loss A/c.

5. Confirmation of Balances in respect of debtors, creditors are not obtained in few cases.

6. The earning include Rs. 40.07 Lakhs on account of 24.67 Lakhs of Market Linked Focus Product Scheme and 15.4 Lakhs on account of focus product scheme. While Market Linked Focus product scheme covers a specifed list of countries and is applicable for the entire year, the focus product scheme covers exports of all countries and is applicable from 1st January 2011.

7. All amounts have been rounded off to the nearest rupee.

8. Previous year's figures have been regrouped/ recast where ever necessary to conform to this year's classification.

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Mar 31, 2010

1. Disclosure Under As-15

Defined Contribution Plans:-

(a) Contribution to Provident Fund : Rs.27,37,407/-

(b) Contribution to Superannuation Fund : Rs. 6,32,147/-

Defined Benefit Plans:-

Gratuity:-

The Gratuity liability is covered by a Master Policy taken out with LIC of India under the Cash Accumulation scheme. The company during the year has done actuarial valuation as on 31.03.2010 and the estimated liability amounted to Rs.9.22 Lakhs which is debited to P & L Account.

Retirement Benefits:

Disclosure as required by Accounting Standard (AS) - 15(Revised 2005) "Employee Benefits" issued by the Institute of Chartered Accountants of India are given below:

2. Segmental Reporting

The company is engaged in the manufacture of FIBC and in the purchase / sale of raw material used in the process of manufacture which in the opinion of the management relied upon by the auditors, constitute single business segment in terms of Accounting Standard 17 on segment reporting taking into account the Organization structure and nature of Risk / return.

3. Contingent Liabilities

Contingent Liabilities not provided for As at As at 31st March 31st March 2010 2009 (Rs. in Lakhs) (Rs. in Lakhs)

a. In respect of guarantees given by the Company 104.62 18.40

b. Letter of credit for purchase of raw-materials 203.88 306.23

c. Claims not acknowledged as debts Nil Nil

d. Estimated amount of contracts remaining to be . 45.00 1,817.00 executed on Capital accounts, not provided for

e. Disputed amount of Sales Tax 2.11 2.11

f. Disputed amount of Central Excise 50.69 50.69

g. Disputed interest on Income Tax 33.64 33.64

No provision has been made in the accounts in respect of disputed amount of sales tax as the company has contested the case and is hopeful of getting the verdict in its favor. Certain claims/show cause notices disputed have neither been considered as contingent liability nor acknowledged as claim, based on the opinion obtained, since the possibility of loss is remote.

4. Terms Loan (Including Medium Term and Corporate Loans) and working capital facilities from State Bank of India and State Bank of Hyderabad are secured by pari passu charges on the fixed assets and current assets of the company and also secured by personal guarantees of directors Sri.G.Sudhakar, Sri.G.P.N.Gupta, Sri.G.Radhakrishna, further secured by personal guarantees of Sri.G.V. Gopinath and Sri. G.V.Balaji.

1. Term Loan from Indian Overseas Bank Ltd is secured by first charge on the fixed assets financed by them and second charge on the existing fixed assets and also personal guarantees of directors Sri.G.Sudhakar, Sri.G.P.N.Gupta and Sri.G.Radhakrishna.

5. Loans and advances includes a sum of Rs.12 Lakhs misappropriated by an employee during 1998-1999 for which no provision has been made in the accounts for the probable loss since this can be reliable estimated only after the disposal of the civil suit and the consequent recovery proceedings, though the verdict in the criminal proceedings is in favour of the company.

6. Jumbo Bag LLC

Jumbo bag Ltd is currently a strategic investor in Jumbo Bag LLC, as of now, Joint Ventures are being explored and a clear picture of the holding structure is likely to emerge only during the current year, when the ultimate holding structure is decided upon by the respected parties. Also presently the size of business of Jumbo Bag LLC is still immaterial and insignificant to that of the parent and therefore the accounts are not presented. However a statement pursuant to Section 212 of the Companies Act, 1956 forms part of this annual report.

7. All amounts have been rounded off to the nearest rupee.

8. Previous years figures have been regrouped/ recast where ever necessary to conform to this years classification.