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Notes to Accounts of Poddar Pigments Ltd.

Mar 31, 2023

1. Reconciliation of the number of shares at the beginning and at the end of the year

There has been no change/movements in number of shares outstanding at the beginning and at the end of the year.

2. Terms/Rights attached to Equity Shares :

The Company has only one class of issued shares i.e., Ordinary Shares having par value of Rs. 10 per share. Each holder of the Ordinary Shares is entitled to one vote per share and equal right for dividend. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting, except in case of interim dividend. In the event of liquidation, the ordinary shareholders are eligible to receive the remaining assets of the Company after payment of all preferential amounts, in proportion to their shareholding.

A) Defined benefits plan Gratuity

The company has a defined benefit gratuity plan. Every employee who has rendered continuous service of 5 years or more is entitled to gratuity at 15 day salary (15/26 * last drawn basis salary) for each completed year for five years or more on superannuation, resignation, termination, disablement or on death.

Leave encashment

The company has a policy to pay leave encashment. Every employee is entitled to claim leave encashment after his/her retirement/termination which is calculated based upon no. of leaves not availed.

* The discount rate assumed is 7.34% which is determined by reference to market yield at the balance sheet date on government bonds.

** The expected rate of return on plan assets is determine considering several applicable factor mainly the composition of plan assets held, assessed risk of assets management and historical return from plan assets.

** The estimates of future salary increase considered in actuarial valuation, taking account of inflation, seniority promotion and other relevent factors, such as supply and demand in the employment market.

IV) Risk exposure

Valuations are based on certain assumptions, which are dynamic in nature and vary over the time. As such company is exposed to various risks as

follow -

A) Salary Cost Inflation Risk: The present value of the Defined Benefit Plan liability is calculated with reference to the future salaries of participants under the Plan. Increase in salary due to adverse inflationary pressures might lead to higher liabilities.

B) Investment Risk : Assets liabilities mismatch & actual investment return on assets lower than the discount rate assumed at the last valuation date can impact the liability.

C) Discount Rate : Reduction in discount rate in subsequent valuations can increase the planâs liability.

D) Mortality & disability : Actual deaths & disability cases proving lower or higher than assumed in the valuation can impact the liabilities.

E) Withdrawals : Actual withdrawals proving higher or lower than assumed withdrawals and change of withdrawal rates at subsequent valuations can impact Planâs liability.

Note No. 35 : DISCLOSURE AS PER IND AS 37 ''PROVISIONS & CONTINGENT LIABILITIES''. (i) Movement in provision (ii) Contingent liabilities to the extent not provided for in respect of (R_s. in Lakhs)
Particulars	2022-23	2021-22
(A) Claims against company not acknowledged as Debts:- (i) Income Tax matters in appeals	-	9.25
(B) Guarantees:- (i) Letter of Credit against purchase of raw materials	_-	467.42
(ii) Bonds Executed with Customs & GST Authorities	30.00	30.00
(iii) Bonds Executed with Customs Authorities for EPCG Licence	357.39	357.39
(iv) Bonds Executed with Customs Authorities for advance licence	487.06	381.55

(iii) Committments

a. Estimated amount of contracts remaining to be executed on Capital Account and not provided for Rs. 619.20 Lakhs (P.Y. Rs 158.42 Lakhs), and advance given Rs. 121.80 Lakhs (P.Y. Rs. 1.95 Lakhs).

b. Other Commitment : NIL

A) Capital manageent

For the purpose of Company''s Capital Management , Capital includes issued equity share capital.

B) Financial risk management

The Company''s Financial Risk Management is an integral part of how to plan and execute its business strategies. The Company''s financial risk management is set by the Board of Directors. The Company''s prinicipal financial liabilities comprise trade payables and other payables. The company''s principal financial assets include trade & other receivables and cash and short term deposits.

(i) Credit risk

Credit risk is the risk of financial loss to the Company if a customer or counterparty to a financial instrument fails to meet its contractual obligations may result into a financial loss to the Company. Credit risk arises principally from trade receivables, loans & advances.

b) Provision for Expected Credit or Loss

(i) Financial assets for which loss allowance is measured using 12 month expected credit losses.

The Company has assets where the counter-parties have sufficient capacity to meet the obligations and where the risk of default is very low. Accordingly, no loss allowance for impairment has been recognised.

(ii) Financial assets for which loss allowance is measured using life time expected credit losses.

The Company provides loss allowance on trade receivables using life time expected credit loss and as per simplified approach.

ii) Liquidity Risk

Liquidity risk is defined as the risk that the Company will not be able to settle or meet its obligations on time at a reasonable price. The Company''s treasury department is responsible for liquidity, funding as well as settlement management. In addition, processes and policies related to such risks are overseen by senior management. Management monitors the Company''s net liquidity position through rolling forecasts on the basis of expected cash flows.

iii) Market Risk

Market Risk mainly relates to the investment & deposits. There is no regular business of company for making investment & deposits. However, company manages the cash resources, borrowings strategies and ensuring compliance of the same with the guidelines & directions of the Higher Management.

A) Foreign currency risk

The company operates internationally and portion of the business is transacted in several currencies and consequently the company is exposed to foreign exchange risk through its sales in overseas and purchase from overseas suppliers in various foreign currencies.

The company evaluate exchange rate exposure arising from foreign currency transsaction and the company follow established risk management policies. Foreign exchange exposure risk is largely covered by natural hedging by linking export proceeds with import payments since company has exposures for both exports & imports and also uses the derivative like foreign exchange forward contracts to hedge exposure to foreign risk to minimise the risk of any possible adverse impact.

B) Interest Rate Risk

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument may fluctuate because of changes in market interest rate. In order to optimize the Company''s position with regards to interest income and interest expenses and to manage the interest rate risk, treasury performs a comprehensive corporate interest rate risk management by balancing the proportion of fixed rate and floating rate financial instruments in its total portfolio.

C) Other Price risk

The company''s exposure towards price risk arises from investments held in equity shares & Mutual Fund are classified in balance sheet at fair value through other comprehensive income & Fair value through Profit and Loss respectively. All of the company''s equity investments are publicaly traded and are listed on NSE and BSE .

Basis of Fair Value Hierarchy

The carrying amount of short term borrowings, trade payables, trade receivables, cash & cash equivalents and other financial assets and liabilities are considered to be the same at their Fair values, due to their short term nature.

Fair value of the financial instruments is classified in various fair value hierarchies based on the following three levels:

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

Level 2: Inputs other than quoted price included within level 1 that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices).

The fair value of financial instruments that are not traded in an active market is determined using market approach and 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 an instrument are observable, the instrument is included in Level 2.

Level 3: Inputs for the assets or liabilities that are not based on observable market data (unobservable inputs).

If one or more of the significant inputs is not based on observable market data, the fair value is determined using generally accepted pricing models based on a discounted cash flow analysis, with the most significant inputs being the discount rate that reflects the credit risk of counter party.

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.

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.

Mar 31, 2018

Corporate Information

Poddar Pigments Limited (the Company) is a public limited company domiciled in India, incorporated under the provisions of Companies Act, 2013. Its shares are listed on Bombay Stock Exchange and National Stock Exchange of India. The Company is a manufacturer of Color & Additive Master batches for dope dyeing of man- made fibers, various plastic applications.These financial statement have been authorised for issue with a resolution of the Directors on 19th May 2018.

Basis of preparation A Statement of Compliance

Company has adopted Indian accounting Standard (Refered to as âInd ASâ) as notified by Companies (Indian Accounting Standards) Rules 2015 read with Section 133 of the Companies Act, 2013 with effect from 1 April 2017. Previous period has been restated as per Ind AS. In accordance with Ind AS 101 âFirst Time Adoption of Indian Accounting Standardâ, the company has presented a reconciliation from the presentation of financial statement under Accounting Standard notified under the Company (Accounting Standard) Rules, 2006 (Previous GAAP) to Ind AS of Shareholders Equity as at March 31, 2017 and April 1, 2016 and the comprehensive net income for the year ended March 31, 2017.For all periods up to and including for the year ended 31 March 2018, the companyâs financial statements prepared complyling in all material respects with the accounting standards notified under Section 133 of the Company Act 2013, read together with paragraph 7 of the Companies (Accounts) Rules, 2014.

B Basis of Measurement

The Financial statements have been prepared under historical cost convention on accrual basis, except for the items that have been measured at fair value as required by relevant Ind AS.The standalone financial statements are presented in Indian Rupees (â), which is the Companyâs functional and presentation currency and all amounts are rounded to the nearest lakhs (â 00,000) and two decimals thereof, except as stated otherwise.

C Use of Estimates

In preparing Companyâs financial statements in conformity with accounting principles generally accepted in India, management is required to make estimates and assumptions that affect the reported amount of assets and liabilities and the disclosure of contingent liabilities at the date of the financial statements and reported amount of revenues and expenses during the reporting period. Actual results could differ from those estimates. Any revision to accounting estimates is recognized in the period in which the same is determined.

D Basis of classification Current and non-current

The Company presents assets and liabilities in the balance sheet based on current/non-current classification.An asset is current when it is:

- Expected to be realized or intended to sold or consumed in normal operating cycle;

- Held primarily for the purpose of trading;

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

- Cash or cash equivalent unless restricted from being exchanged or used to settle a liability for at least twelve months after the reporting period. All other assets are classified as non-current.

A liability is current when:

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

- It is held primarily for the purpose of trading;

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

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

All other liabilities are classified as non-current.

Note 1.1 Investment has been valued as per accounting policy as mentioned in F.1.c

Note 1.2 During the year gain of Rs.1167.64 Lakhs (PY. Rs. 35.11 Lakhs) has been transferred to retained earnings relating to the disposal of investment, which is measured through other comprehensive income (net of tax)

Note No.2.1 Advance given to employees are measured at amortised cost.

Note No. 2.2 The company had lodged claim with Insurance Company/IOC/RIICO on account of damages/loss caused due to fire in IOC Depot adjacent to Sitapura factory at Jaipur in October, 2009. Till date claim filed with Insurance Company has been settled & received. However, claim with RIICO is under legal process, as the appeal of the company is lying in the court of law and the company is hopeful of recovery of the claim.

3.1 Reconciliation of the number of shares at the beginning and at the end of the year

There has been no change/ movements in number of shares outstanding at the beginning and at the end of the year.

3.2 Terms/ Rights attached to Equity Shares :

4.1 Events occurring after the Balance Sheet date:

Dividends Proposed to be distributed

The Board has recommended final dividend of Rs 3.50 per share (Previous year Rs. 1.00 per share) payable subject to the approval of shareholders in the ensuing Annual General Meeting. Total outgo on this accounts will be Rs 447.68 lakhs (previous year Rs.127.70 lakhs) inclusive of dividend distribution tax.

4.2 The company has elected to recognise changes in the fair value of certain investment in equity securities in the other comprehensive income. These changes are accumulated within FVTOCI reserve with equity. The company has transferred Rs. 1167.65 lakhs (as on 31.03.17 Rs. 42.31 lakhs, as on 01.04.16 Nil) from FVTOCI reserve to retained earnings at the time of disposal of securities.

Note no. 5.1 Working capital borrowings are secured by charge by way of hypothecation on entire current assets including stocks & receivables on first pari passu basis and charge on fixed assets including land of the company located at Jaipur plant on first pari passu charge basis.

Note no. 6.1 Details of supplier covered under the Micro, Small and Medium Enterprises Development Act, 2006 and which have furnished the information regarding filing of necessary memorandum with appointed authority is as under:-

6.2 Sales are net of rebate and discounts.

6.3 Miscellaneous sales includes sale of Production Waste

Note No. 7 : DISCLOSURE AS PER IND AS 19 â EMPLOYEE BENEFITâ

A) Defined contribution plan

During the year company has recongised the following amounts in the statement of profit and loss.

B) Defined benefits plan Gratuity

The company has a defined benefit gratuity plan. Every employee who has rendered continuous service of 5 years or more is entitled to gratuity at 15 day salary (15/26 x last drawn basis salary) for each completed year for five years or more on superannuation, resignation, termination, disablement or on death.

Leave encashment

The company has a policy to pay leave encashment. Every employee is entitled to claim leave encashment after his/her retirement/termination which is calculated based upon no. of leaves not availed.

* The discount rate assumed is 7.80% which is determined by reference to market yield at the balance sheet date on government bonds.

II) Sensitivity analysis

Reasonable possible change at the reporting date to one of the relevant actuarial assumption, holding other assumption constant, would have effected the defined benefit obligation by the amount shown below:-

IV) Risk exposure

Valuations are based on certain assumptions, which are dynamic in nature and vary over the time. As such company is

exposed to various risks as follow:-

A) Salary Cost Inflation Risk:- The present value of the Defined Benefit Plan liability is calculated with reference to the future salaries of participants under the Plan. Increase in salary due to adverse inflationary pressures might lead to higher liabilities.

B) Investment Risk:- Assets liabilities mismatch & actual investment return on assets lower than the discount rate assumed at the last valuation date can impact the liability.

C) Discount Rate:- Reduction in discount rate in subsequent valuations can increase the planâs liability.

D) Mortality & disability:- Actual deaths & disability cases proving lower or higher than assumed in the valuation can impact the liabilities.

E) Withdrawals:- Actual withdrawals proving higher or lower than assumed withdrawals and change of withdrawal rates at subsequent valuations can impact Planâs liability.

Note No. 8 : DISCLOSURE AS PER IND AS 21 âTHE EFFECTS OF CHANGES IN FOREIGN EXCHANGE RATESâ

The amount of exchange differences (net) credited to the Statement of Profit & Loss is Rs. 301.25 Lakhs (31^st March, 2017: Rs. 187.68 Lakhs).

Note No. 9 : DISCLOSURE AS PER IND AS 24 âRELATED PARTY DISCLOSURESâ

A) List of related party

i) Parties holding significant influence

I) Pluto Tradelinks Ltd.

II) GKS Logistics Pvt Ltd.

III) G.K.S. Holdings Ltd.

ii) Key Management Personnal

Shri S.S. Poddar - Managing Director & CFO

Shri R.K.Sureka - Director & CEO

Shri Kishore Rungta - Non Executive & Independent Director

Smt. Mahima P Agarwal - Non Executive Director

Shri M.K. Sonthalia - Non Executive & Independent Director

Shri N. Gopalaswamy - Non Executive & Independent Director

Shri Gaurav Goenka - Non Executive Director

Shri M. Mahadevan - Non Executive & Independent Director

iii) Relatives of the Key Management Personnal

Smt. Sushma Sureka - Wife of Director & CEO

Smt. Mahima P Agarwal - Director of the Company and daughter of Managing Director & CFO.

Ms. Rochna Poddar - Daughter of Managing Director & CFO.

iii) Sitting Fees paid to Non executive/Independent Director Rs. 1.90 Lakhs (Previous Year Rs. 2.00 Lakhs)

Terms and conditions:

All the transactions were made on normal commercial terms and conditions and at market rates. All outstanding balances are unsecured and are repayable on demand.

(iii) Committments

a. Estimated amount of contracts remaining to be executed on Capital Account and not provided for Rs. 149.23 lakhs (previous year Rs. 8.87 lakhs), and advance given Rs. 17.35 lakhs (previous year Rs. 2.83 lakhs)

b. Other Commitment : NIL

Note No. 38 : DISCLOSURE AS PER IND AS 107 âFINANCIAL INSTRUMENT DISCLOSUREâ

A) Capital management

For the purpose of Companyâs Capital Management, Capital includes issued equity share capital.

B) Financial risk management

The Companyâs Financial Risk Management is an integral part of how to plan and execute its business strategies. The Companyâs financial risk management is set by the Board of Directors. The Companyâs prinicipal financial liabilities comprise trade payables and other payables. The companyâs principal financial assets include trade & other receivables and cash and short term deposits.

(i) Credit risk

b) Provision for Expected Credit or Loss

(i) Financial assets for which loss allowance is measured using 12 month expected credit losses.

(ii) Financial assets for which loss allowance is measured using life time expected credit losses

The Company provides loss allowance on trade receivables using life time expected credit loss and as per simplified approach.

ii) Liquidity Risk

Liquidity risk is defined as the risk that the Company will not be able to settle or meet its obligations on time at a reasonable price. The Companyâs treasury department is responsible for liquidity, funding as well as settlement management. In addition, processes and policies related to such risks are overseen by senior management. Management monitors the Companyâs net liquidity position through rolling forecasts on the basis of expected cash flows.

iii) Market Risk

Market Risk mainly relates to the investment & deposits. There is no regular business of company for making investment & deposits.However, company manages the cash resources, borrowings strategies and ensuring compliance of the same with the guidelines & directions of the Higher Management.

A) Foreign currency risk

B) Interest Rate Risk

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument may fluctuate because of changes in market interest rate. In order to optimize the Companyâs position with regards to interest income and interest expenses and to manage the interest rate risk, treasury performs a comprehensive corporate interest rate risk management by balancing the proportion of fixed rate and floating rate financial instruments in its total portfolio.

C) Other Price Risk

The companyâs exposure towards price risk arises from investments held in equity shares & Mutual Fund are classified in balance sheet at fair value through other comprehensive income & Fair value through Profit and Loss respectively. All of the companyâs equity investments are publicaly traded and are listed on NSE and BSE .

Note No. 10 : DISCLOSURE AS PER IND AS 113 âFAIR VALUE MEASUREMENTâ

Fair Value Hierarchy

Valuation Techniques used to determine fair values:

Specific valuation technique is used to determine the fair value of the financial instruments which include:

i) For Investments in Equity Investments - Quoted Market price are used.

ii) For Investments in Mutual funds - Closing NAV is used.

iii) The carrying amount of short term borrowings, trade payables, trade receivables, cash & cash equivalents and other financial assets and liabilities are considered to be the same at their Fair values, due to their short term nature.

Basis of Fair Value Hierarchy

Fair value of the financial instruments is classified in various fair value hierarchies based on the following three levels:

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

Level 2: Inputs other than quoted price included within level 1 that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices).

Level 3: Inputs for the assets or liabilities that are not based on observable market data (unobservable inputs).

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.

Note No. 11 : DISCLOSURE OF CORPORATE SOCIAL RESPONSIBILITY (CSR)

As per section 135 of companies act the company is required to spend in every financial year, at least 2% of the average net profits of the company made during the three immediately preceding financial year in accordance with its CSR policy.

A. Gross amount required to be spent by the Company during the year 2017-18 - Rs. 52.60 lakhs (Year 2016-17 - Rs. 47.50 lakhs)

B. Amount spent during the year on:

Note No. 12 : FIRST TIME ADOPTION OF IND AS

These are the companyâs first standalone financial statements prepared in accordance with Ind AS for period up to and including the year ended 31^st March, 2018. Untill 31^st March, 2017 the company prepared its first financial statement in accordance with previous GAAP, including accounting standards notified under the companies (Accounting standards) Amendment Rules, 2016. The effective date for companies Ind AS Opening Balance sheet is 1^st April, 2016. (The date of transition to Ind AS)

The accounting policies set out in note 1 have been applied in preparing the financial statements for the year ended 31st March 2018, the comparative information presented in these financial statements for the year ended 31^st March, 2017 and in the preparation of an opening Ind AS Balance Sheet at 1^st April, 2016 . In preparing its opening Ind AS balance sheet, the Compay has adjusted the amounts reported previously in financial statements prepared in accordance with the accounting standards notified under Companies (Accounting Standards) Amendment Rules, 2016 and other relevant provisions of the Act (previous GAAP or Indian GAAP). An explanation of how the transition from previous GAAP to Ind AS has affected the company financial position, financial performance and cash flows is set out in the following tables and notes.

Any resulting differences between carrying amount of assets and liabilities according to Ind AS 101 as of April 1, 2016 compared to those presented in the Indian GAAP Balance Sheet as of 31^st March 2016, were recognised in the equity under reatined earnings with Ind AS Balance Sheet.

Exemptions and Exceptions availed

The Company has prepared the financial statements in accordance with Ind AS for the year ending 31^st March, 2018. In preparing such statements, the opening balance sheet was prepared at 1^st April 2016, the companyâs date of transition to Ind AS. The note explains the principal adjustments made in order to restate its Indian GAAP financial statements including the balance sheet as at 1^st April, 2016 and financial statements as at and for the year ended 31^st March, 2017.

Set out below are the applicable Ind AS 101 optional exemptions and mandatory exceptions applied in the transition from previous GAAP to Ind AS.

(A) EXEMPTIONS:

i) Property, Plant & Equipment

Ind AS 101 permits a first time adopter to elect to continue with the carrying value for all of its property, plant and equipment as recongised in financial statement as at date on transition to IndAS, measured as the previous GAAP and used that as its deemed cost as at date of transition.

Accordingly the Company has elected to measure all of its Property, Plant and Equipment at their previous GAAP carrying value.

ii) Designation of previously recognised financial instrument

These para 19B of appendix D of Ind AS 101 allow an entity to designate in equity instrument at FVTOCI on the basis of the fact and circumstances at the date of transition to Ind AS.

The company has elected to apply this exemption for its investment in equity instrument in HOEC, Karnataka bank, PFC, REC.

iii) Leases

As per para 9AA of appendix D of Ind AS 101, If there is any Leasehold land newly classified as finance lease then the first time adopter may recognise assets and liability at fair value on that date and any difference between those fair values is to be recognised in retained earnings, accordingly on the date of transition to Ind AS, the carrying amount of Leasehold land is considered as its Fair Value.

(B) EXCEPTIONS:

i) Estimates

An entityâs estimates in accordance with Ind AS at the date of transition to Ind AS shall be consistent with estimates made for the same date in accordance with previous GAAP (after adjustments to reflect any difference in accounting policies), unless there is objective evidence that those estimates were in error.

Ind AS estimates as at 1^st April, 2016 are consistent with the estimates as at the same date made in conformity with previous GAAP The company made estimates for following items in accordance with the Ind AS at the date of transition as these were not required under previous GAAP

- Investment in equity instrument carried at FVTOCI

- Investment in debt instrument carried at FVTPL

ii) Classification and Measurement of financial assets

Ind AS 101 requires an entity to assess classification and measurement of financial assets on the basis of the facts and circumstances that exist at the date of transition to Ind AS.

Reconciliations between previous GAAP and Ind AS

Ind AS 101 requires an entity to reconcile equity, total comprehensive income and cash flows for prior periods. The following tables represent the reconciliations from previous GAAP to Ind AS.

Notes to Reconciliation a) Fair valuation of Investment

i) Under previous GAAP, company accounted for long term investments in quoted and unquoted equity share as investment measured at cost less provision of other than temporary diminution in the value of investment. Under Ind AS company has designated quoted investment as FVTOCI investment. The resulting fair value change in these investment have been recongnised in seperate component of equity (FVTOCI Reserve) as at date of transition and subsequently in other comprehensive income.

ii) Under previous GAAP, company accounted for unquoted short term investment at cost or market value whichever is less. Under Ind AS company has designated its unquoted investment through FVTPL. The resulting changes in fair value of investment at NAV have been recognised in retained earnings as at date of transition and subsequently in Statement of Profit and Loss.

b) Deferred Tax

Under Previous GAAP, deferred tax is calculated using the income statement approach, which focuses on differences between accounting profits and taxable profits for the period. Under Ind AS, deferred tax is accounted using the balance sheet approach, which focuses on temporary differences between the carrying amount of the assets or liabilities in the balance sheet and its tax base. The resulting changes in the amount of deferred tax is recognised in deferred tax liability on the date of transition and subsequently in Statement of Profit and Loss for those items relating to Profit and Loss and in other comprehensive income for those which are classified through FVTOCI.

c) Employee Benefits

Both under Indian GAAP and Ind AS, the company recognized costs related to its post employment defined benefits plan on an acturial basis. Under Indian GAAP the entire cost including acturial gain/loss are charged to profit or loss. Under Ind AS, Remeasurements are recognized in Other Comprehensive Income.

d) Other Equity

Retained Earnings as at 1st April 2016 has been adjusted to the above Ind AS transition adjustments. Refer âReconciliation of Total Equityâ as at 31st March 2017 and 1^st April, 2016â as given above.

Capital reserve on account of Government grant has been transferred to Retained earnings as on date of transition.

e) Other Comprehensive Income

Under Indian GAAP the company has not presented Other Comprehensive Income seperately. Hence Indian GAAP profit or loss is reconciled to total comprehensive income.

f) Cash flow statement

Cash flow from operating activity under Ind AS has decreased due to gain on sale of investment as previously classified in investing activity.

g) Trade discount and Volume rebate

Under Previous GAAP, Trade discounts and volume rebates received are not encompassed within the definition of revenue, since they represent a reduction of cost. Under Ind AS, Trade discount and volume rebate cover in definition of Revenue so it is deducted from sales.

h) Financial Asset

Under previous GAAP, Company accounts interest accrue on national saving certificate as current assets. Under Ind AS certain assets covered under Ind AS 32 meet the definition of Financial assets which is to be settled in cash or another financial assets are classified as financial assets at amortised cost. So interest accrue on such investment shown with actual investment value.

Mar 31, 2016

Foot notes:

1. During the current year and in the previous year, there have been no movements in the number of equity share outstanding.

2. The Company has only one class of equity shares, having a par value of Rs.10 per share. Each shareholder is eligible for one vote per share held. In the event of liquidation, the equity shareholders are eligible to receive the remaining assets of the company, after distribution of all preferential amount, in proportion to their share holding.

Note No. 3. Including 978500 shares acquired during the year on merger of erstwhile Trust line Capital Finance Limited.

Foot Note:

4. This pertain to Depreciation on assets in respect of which useful life was nil as at 1⁸¹ April, 2014.

5. During the year ended 31^st March, 2016, the company has declared and paid interim dividend @ 2.50 per equity share totaling to Rs. 319.26 lacs including dividend distribution tax.

6. Nature of security

Working capital borrowings are secured by charge by way of hypothecation on entire current assets including stocks & receivables on first pari passu basis and charge on fixed assets including land of the company located at Jaipur plant on first pari passu charge basis.

(A) Capital commitment

Estimated amount of contracts remaining to be executed on Capital Account and not provided for Rs. 151.60 lacs (2014-15 Rs. 6.75 lacs), and advance given Rs. 54.27 lacs (previous year Rs. 2.43 lacs)

(B) Other Commitment - NIL

Note No. 7: Details of Suppliers covered under the Micro, Small and Medium Enterprises Development Act, 2006, and which have furnished the information regarding filing of necessary memorandum with appointed authority is as under :-

(a) Amount outstanding at the year end-Rs. NIL(previous year Rs. NIL)

(b) Interest payable on delayed payments - Rs. NIL (previous year Rs. NIL)

Note No 8 : In Respect of Claim Receivable:

The company had lodged claim with Insurance Company / IOC / Rl ICO on account of damages /loss caused due to fire In IOC Depot adjacent to Sitapura factory at Jaipur In October, 2009. Till date claim filed with Insurance Company has been settled & received. However, claim with RIICO is under legal process, as the appeal of the company is lying in the court of law. Claim filed with IOC is at advance stage of settlement and the company is hopeful of full recovery of the claim.

(Ill) Capital Employed

Assets used in the Company''s business are not capable of being specifically identified with any of the segments and it is not practicable to provide segmental disclosures in relation to total assets and liabilities with any reasonable degree of accuracy.

B. Business Segment (Secondary Segment)

The Company is in the business of manufacture of Master batches and Engineering Plastic Compounds. Since the operations of Engineering Plastic Compounds contributes less than 10% of the company''s total revenue/profits, the operations of _ Master batches is treated as one reportable business segment.

A. Names of the Related parties "Holding Significant Influence" and "Key Management Personnel" under the Accounting Standard (AS-18) are as under:-

i. Parties holding significant influence

(I) Pluto Trade links Ltd. (II) GKS Logistics Pvt. Ltd. (Ill) G.K.S. Holdings Ltd.

ii. Key Management Personnel

Shri S. S. Poddar - Managing Director &CFO

Shri R. K. Sureka - Director &CEO

iii Relatives of the Key Management Personnel

Smt. Sushma Sureka - Wife of Directors CEO

Smt. Mahima P. Agarwal - Director of the Company and daughter of Managing Director &CFO

Ms. Rochna Poddar - Daughter of Managing Director &CFO

Shri Abhinav Sureka - Son of Director &CEO

b) Leave Encashment

The discount rate assumed is 8 % which is determined by reference to market yield at the Balance Sheet date on Government bonds. The estimates of future salary increase considered in actuarial valuation, taking account of inflation, seniority promotion and other relevant factors, such as supply and demand in the employment market. Reconciliation of opening and closing balances of the present value of the defined benefit obligation:

(b) Derivative instruments

The Company uses foreign currency forward contracts to hedge its risks associated with foreign currency fluctuations relating to certain firm commitments and forecasted transactions. The use of foreign currency forward contracts is governed by the Company''s strategy, approved by the board of directors, which provides principles on the use of such forward contracts consistent with the Company''s Risk Management Policy. The Company does not use forward contracts for speculative purposes.

Note No. 9 : Previous year figures have been regrouped/rearranged wherever considered necessary to conform current year classification.

Mar 31, 2015

1.1 Nature of security

Working capital borrowings are secured by charge by way of hypothecation on entire current assets including stocks & receivables on first pari passu basis and charge on fixed assets of company located at Jaipur plant on first pari passu hypothecation charge basis.

Note No. 2 : COMMITMENTS

(A) Capital commitment

Estimated amount of contracts remaining to be executed on Capital Account and not provided for Rs. 6.75 lacs (2013-14 Rs. 40.12 lacs), and advance given Rs. 2.43 lacs (previous year Rs. 25.01 lacs)

(B) Other Commitment - NIL

Note No. 3 : CONTINGENT LIABILITIES TO THE EXTENT NOT PROVIDED FOR IN RESPECT OF

(Rs. In lacs)

As at As at 31st March, 2015 31st March, 2014

(A) Claim against company not acknowledged as Debts:-

(i) Income Tax matters in appeals 22.32 16.36

(ii) Sales Tax demands not admitted by the company and for which 0.23 5.88 appeals have been filed with appropriate authorities.

(iii) Service Tax demand not admitted by the company and for 35.43 4.17 which appeals have been filed with appropriate authorities.

(iv) Excise duty demand not admitted by the company and for which 2.21 - appeals have been filed with appropriate authorities.

(B) Guarantees:-

(i) Letter of Credit against purchase of raw materials 1,056.80 1,237.91

(ii) Bonds Executed with Customs & Excise Authorities 30.00 30.00

(C) Other Contingent Liabilities

Bill discounting with banks - 4.07

Note No.4 A: Show Cause Notice in respect of refund of Excise duty on exports:-

The Company has been served certain Show Cause Notices from the taxation authorities in respect of claim for refund of duties paid on exports which are being contested and the company is confident that the said show Cause Notices shall be withdrawn as the basis on which such notices have been issued are not tenable in the eyes of the law based upon the rejection of the appeals vide its order dt. 21/17-04-2015 by the Commissioner (Appeals), Jaipur in the similar matter and nature field by the Department against the Company and various circulars/case laws issued/ decided from time to time (Rs. 286.95 Lacs).

Note No. 5: Details of Suppliers covered under the Micro, Small and Medium Enterprises Development Act, 2006, and which have furnished the information regarding filing of necessary memorandum with appointed authority is as under:-

(a) Amount outstanding at the year end -Rs. NIL (Previous Year Rs. NIL)

(b) Interest payable on delayed payments -Rs. NIL (Previous Year Rs. NIL)

Note No. 6 : In Respect of Claim Receivable:

The Company had lodged claim with Insurance Company / IOC / RIICO on account of damages /loss caused due to fire in IOC Depot adjacent to Sitapura factory at Jaipur in October, 2009. Till date claim filed with Insurance Company has been settled & received. However, claim with RIICO is under legal process, as the appeal of the company is lying in the court of law. Claim filed with IOC is at advance stage of settlement and the company is hopeful of full recovery of the claim.

Note No. 7 : Pursuant to Companies Act, 2013 ("the Act"), being effective from 1st April, 2014, the Company has revised depreciation rates on fixed assets as per the useful life specified in part"C" of Schedule II of the Act. As a result of the change, the depreciation charge is higher by Rs. 38.70 Lacs for the year ended 31st March, 2015. Further, an amount of Rs. 32.18 lacs (net of deferred tax of Rs. 16.57 Lacs) has been recognized in the opening balance of the retained earnings by adjusting in retained earning for the assets where remaining useful life as per schedule II of the said act has become nil as on 01.04.2014.

Note No. 8 : SEGMENT REPORTING

A. Geographical Segment (Primary Segment)

Since the Export operations contribute more than 10 % of the company's total revenue, the Geographical Segment has been considered as primary segment and for that disclosure has been divided into sales within India (Sales to customers located within India) and sales outside India (sales to customers located out side India ) as per accounting standard 17. The relevant information is as under-

B. Capital Employed

Assets used in the Company's business are not capable of being specifically identified with any of the segments and it is not practicable to provide segmental disclosures in relation to total assets and liabilities with any reasonable degree of accuracy.

B. Business Segment (Secondary Segment)

The Company is in the business of manufacture of Masterbatches and Engineering Plastic Compounds. Since the operations of Engineering Plastic Compounds contributes less than 10 % of the company's total revenue/profits, the operations of Masterbatches is treated as one reportable business segment.

Note No. 9 : RELATED PARTY DISCLOSURES Pursuant to AS-18, following related parties have been identified

A. Names of the Related parties "Holding Significant Influence" and "Key Management Personnel" under the Accounting Standard (AS-18) are as under:- -

i. Parties holding significant influence

(I) M/s.Trustline Capital Finance Pvt. Ltd. (II) Pluto Trade links Ltd. (Ill) GKS Logistics Pvt. Ltd. (IV) G.K.S. Holdings Ltd.

ii. Key Management Personnel

ShriS.S. Poddar - Managing Directors CFO

Shri R. K. Sureka - Director & CEO

iii Relatives of the Key Management Personnel

Smt. Sushma Sureka - Wife of Director & CEO

Smt. Mahima P. Agarwal - Director of the Company and daughter of Managing Director & CFO

Ms. Rochna Poddar - Daughter of Managing Directors CFO

Shri Abhinav Sureka - Son of Directors CEO

Note No. 10 : EMPLOYEE BENEFITS

The Company has calculated the various benefits provided to employees as under:- '

A) Defined Contribution Plans Provident Fund

During the year the Company has recognised the following amounts in the statement of Profit and Loss Account:

C) Defined Benefit Plans

a) Gratuity

b) Leave Encashment

The discount rate assumed is 8 % which is determined by reference to market yield at the Balance Sheet date on Government bonds. The estimates of future salary increase considered in actuarial valuation, taking account of inflation, seniority promotion and other relevent factors, such as supply and demand in the employment market. Reconcilation of opening and closing balances of the present value of the defined benefit obligation:

Note No. 11 : FINANCIAL AND DERIVATIVE INSTRUMENTS

(b) Derivative instruments

The Company uses foreign currency forward contracts to hedge its risks associated with foreign currency fluctuations relating to certain firm commitments and forecasted transactions. The use of foreign currency forward contracts is governed by the Company's strategy, approved by the board of directors, which provides principles on the use of such forward contracts consistent with the Company's Risk Management Policy. The Company does not use forward contracts for speculative purposes.

Note No. 12 ; Previous year figures have been regrouped/rearranged wherever considered necessary to conform current year classification.

Mar 31, 2014

Note No. 1 : SHORT-TERM BORROWINGS

Nature of security

1.1 Working capital borrowings are secured by (i) charge by way of hypothecation on entire current assets including stocks & receivables on first pari passu basis, and (ii) charge on fixed assets on second pari passu basis.

Terms of repayment

1.2. Buyers credit in foreign currency repayable as per the terms of agreement has been fully paid during the year.

Note 2.1. Plant & machinery of Rs. NIL (previous year Rs. 29.56 lacs ) has been capitalized on account of foreign exchange variation during the year following the notification of MCA dated 31.03.2009 ( as amended vide notification no. F. No.17/133/2008-CL.V dated 29.12.2011) relating to AS-11 on " The effect of changes in foreign exchange rates".

Note 2.2. Plant & Machinery includes Rs. 1,072.45 lacs being R & D Equipments, out of which Rs. 49.78 lacs was purchased during the year and is net of Rs. 8.30 lacs sold during the year.

Note No. 3: EXCEPTIONAL ITEMS

Note No. 3.1. Loss of Rs. 96.86 lacs is net of profit of Rs. 14.25 lacs on sale of 1,83,100 equity shares held in the capital of Rajasthan Petro Synthetics Limited, the value of which was written off in the financial year 2005-06 in view of no intrinsic value of the investee company.

Note No. 4 : COMMITMENTS

(A) Capital commitment

Estimated amount of contracts remaining to be executed on Capital Account and not provided for Rs. 40.12 lacs (2012-13 Rs. 14.04 lacs), and advance given Rs. 25.01 lacs (previous year Rs. 3.95 lacs)

(B) Other Commitment - NIL

Note No. 5 : CONTINGENT LIABILITIES TO THE EXTENT NOT PROVIDED FOR IN RESPECT OF:

(Rs. In lacs)

As at As at 31st March, 2014 31st March, 2013

(A) Claim against company not acknowledged as debts:-

(i) Income Tax matters in appeals 16.36 13.22

(ii) Sales Tax demands not admitted by the company and for which 5.88 4.79 appeals have been filed with appropriate authorities.

(iii) Service Tax demand not admitted by the company and for 4.17 3.12 which appeals have been filed with appropriate authorities.

(B) Guarantees:-

(i) Bank Guarantees 0.76

(ii) Letter of Credit against purchase of raw materials 1,237.91 1,354.10

(iii) Bonds Executed with Customs & Excise Authorities 30.00 30.00

(C) Other Contingent Liabilities:-

(i) Bill discounting with banks (since realised Rs. 4.07 lacs 4.07 244.21 (2012-13 Rs. 244.21 lacs )

Note No.6 A : Show Cause Notice in respect of refund of Excise duty on exports:-

The Company has been served certain Show Cause Notices from the taxation authorities in respect of refund of claim of duties paid on exports which are being contested and the company is confident that the said show Cause Notices shall be withdrawn as the basis on which such notices have been issued are not tenable in the eyes of the law based upon the various circulars/case laws.

Note No. 7 : Details of Suppliers covered under the Micro, Small and Medium Enterprises Development Act, 2006, and which have furnished the information regarding filing of necessary memorandum with appointed authority is as under:- (a) Amount outstanding at the year end - Rs. NIL (Previous Year Rs. NIL) (b) Interest payable on delayed payments - Rs. NIL (Previous Year Rs. NIL)

Note No. 8 : The Company had lodged claim with Insurance Company / IOC / RIICO on account of damages /loss caused due to fire in IOC Depot adjacent to Sitapura factory at Jaipur in October, 2009. Till date claim filed with Insurance Company has been settled & received. However, claim with RIICO is under legal process, as the appeal of the company is lying in the court of law. Claim filed with IOC is at advance stage of settlement and the company is hopeful of full recovery of the claim.

Note No. 9 : FINANCIAL AND DERIVATIVE INSTRUMENTS

(b) Derivative instruments

The Company uses foreign currency forward contracts to hedge its risks associated with foreign currency fluctuations relating to certain firm commitments and forecasted transactions. The use of foreign currency forward contracts is governed by the Company''s strategy, approved by the board of directors, which provides principles on the use of such forward contracts consistent with the Company''s Risk Management Policy. The Company does not use forward contracts for speculative purposes.

B. Business Segment (Secondary Segment)

The Company is in the business of manufacture of Masterbatches and Engineering Plastic Compounds. Since the operations of Engineering Plastic Compounds contributes less than 10 % of the company''s total revenue/profits, the operations of Masterbatches is treated as one reportable business segment.

Note No.10: Previous year figure have been regrouped/rearranged wherever considered necessary to conform current year classification.

Mar 31, 2013

Corporate Information

Poddar Pigments Limited (the Company) is a public limited company domiciled in India, incorporated under the provisions of Companies Act, 1956. Its shares are listed on Bombay Stock Exchange. The Company is a manufacturer of Color & Additive Master batches for dope dyeing of man- made fibers and various plastic applications.

Note No. 1 : COMMITMENTS

(A) Capital commitment

Estimated amount of contracts remaining to be executed on Capital Account and not provided for Rs. 14.04 lacs (2011-12 Rs. 44.27 lacs) and advance given Rs. 3.95 lacs (previous year Rs. 5.59 lacs)

(B) Other Commitment - NIL

Note No. 2 : CONTINGENT LIABILITIES TO THE EXTENT NOT PROVIDED FOR IN RESPECT OF:

(Rs. In lacs) As at As at 31st March, 2013 31st March, 2012

(A) Claim against company not acknowledged as debts:-

(i) Income Tax matters in appeals 13.22 7.80

(ii) Sales Tax demands not admitted by the company and for which 4.79 9.27 appeals have been filed with appropriate authorities.

(iii) Service Tax demand not admitted by the company and for 3.12 which appeals have been filed with appropriate authorities.

(B) Guarantees:-

(i) Bank Guarantees 0.76 1.90

(ii) Letter of Creditagainstpurc hase of rawmaterial 1,354.10 847.60

(iii) Bonds Executed with Customs & Excise Authorities 30.00 30.00

(C) Other Contingent Liabilities:-

(i) Bill discounting with banks (since realised Rs. 223.34 lacs) 244.21 40.84 [2011-12 Rs. 40.84 lacs])

Note No. 3 : Details of Suppliers covered under the Micro, Small and Medium Enterprises Development Act, 2006, and which have furnished the information regarding filing of necessary memorandum with appointed authority is as under: -

(a)Amount outstanding at the year end -Rs. NIL (Previous Year Rs. NIL)

(b)lnterest payable on delayed payments - Rs. NIL (Previous Year Rs. NIL)

Note No. 4: The Insurance claim filed with Insurance Company / IOC on account of damages/ loss Caused due to fire in IOC Depot adjacent to our Sitapura Factory at Jaipur in Oct, 2009 is under process of settlement, part of which was already settled and received. The Management is hopeful of realization of the claim amount in full.

Note No. 5 : SEGMENT REPORTING

A. Geographical Segment (Primary Segment)

Since the Export operations contribute more than 10 % of the company''s total revenue, the Geographical Segment has been considered as primary segment and for that disclosure has been divided into sales within India ( sales to customers located within India) and sales outside India (sales to customers located out side India ) as per accounting standard 17. The relevant information is as under: -

B. Business Segment (Secondary Segment)

The company is in the business of manufacture of Masterbatches and Engineering Plastic Compounds. Since the operations of Engineering Plastic Compounds contributes less than 10% of the company''s total revenue/profits, the operations of Masterbatches is treated as one reportable business segment.

Note No. 6 : RELATED PARTY DISCLOSURES

A. Names of the Related parties "Holding Significant Influence" and "Key Management Personnel" under the Accounting Standard (AS-18) are as under :-

i. Parties holding significant influence

M/s.Trustline Capital Finance Pvt Ltd., Pluto Trade links Ltd., GKS Logistics Pvt Ltd. and G.K.S. Holdings Ltd. ii. Key Management Personnel

ShriS.S.Poddar Managing Director

Shri R. K.Sureka Director & CEO

iii Relatives of the Key Management Personnel

Smt. Kusum Poddar - Ex-Director of the company and wife of Managing Director.

Smt. Sushma Sureka - Wife of Director & CEO

Smt. Mahima P. Agarwal - Director of the Company and daughter of Managing Director.

Note No. 7 : Previous year figures have been regrouped/rearranged wherever considered necessary to conform to this year in view of the schedule VI and paises have been rounded off to the nearest rupee.

Mar 31, 2012

Corporate Information

Poddar Pigments Limited (the Company) is a public limited company domiciled in India, incorporated under the provisions of Companies Act, 1956. Its shares are listed on Bombay Stock Exchange and Jaipur Stock Exchange Limited. The Company is a manufacturer of Color & Additive Master batches for dope dyeing of man- made fibers, various plastic applications.

1.1. During the current year and in the previous year, there have been no movements in the number of equity share outstanding.

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

Foot Note:

2.1 - The Company has declared dividend on the equity shares @ Rs. 21- per share (Previous year Rs. 2.25 Per share), totalling to Rs. 2,46,62,415 (Previous year Rs. 2,78,37,576) including dividend tax. The dividend so declared is subject to approval of the members of the company at the Annual General Meeting.

Nature of security

3.1. Term loan is secured by (i) first charge basis on assets created out of Term Loan (ii) Hypothecation on Second pari-passu charge basis on entire current assets (present and future) (iii) Extension on bank's share of second pari passu charge on fixed assets of the company (excluding assets created by Term Loan which are primary security for term loan and Chennai property).

Terms of repayment

3.2. Foreign currency term loan equivalent to Rs. 6,98,83,700 is repayable on quarterly installment in USD equivalent of Rs. 1 Crore commencing from July, 2011 and ending in April, 2013.

3.3. Deferred Sales Tax is Repayable in 24 equal monthly installment commencing from April 2012.

4.1. Nature of security

Working capital loan is secured by (i) Hypothecation on first pari passu charge on entire current assets present and future including stocks, Receivables (ii) Second pari passu charge on fixed assets present and future.

Terms of repayment

4.2. Working capital loans from bank are repayable on demand.

4.3. Buyers credit in foreign currency are repayable, as per the terms of agreement, within 12 months.

Foot note: 5.1 There are no outstanding dues to be deposited into the investor Education and Protection Fund as the stipulated period is not over.

Note No. 6 : CONTINGENT LIABILITIES TO THE EXTENT NOT PROVIDED FOR IN RESPECT OF:

As at 31st As at 31st March, 2012 March, 2011 (Rs.) (Rs.)

(A) Claim against company acknowledged as Debts:-

(i) Income Tax matter in appeals. 780,059 153,830

(ii) Sales Tax demands not admitted by the company and for which appeals have been filed with appropriate authorities. 926,880 828,817

(iii) Service Tax demand not admitted by the company and for which appeals have been filed with appropriate authorities. - 24,490

(iv) Showcause notices in respect of Excise duty matters pending with adjudicating authority for necessary order. - 3,017,941

(B) Guarantees:-

(i) Bank Guarantees 190,099 NIL

(ii) Letter of Credit against purchase of raw material 84,760,391 57,021,853

(iii) Bonds Executed with Customs & Excise Authorities 3,000,000 3,000,000

(C) Other Contingent Liabilities:-

(i) Bill discounting with banks (since realised Rs. 4084090/- (2010-11 Rs. 11056103)) 4,084,090 32,719,896

Note No. 7 : Details of Suppliers covered under the Micro, Small and Medium Enterprises Development Act, 2006, and which have furnished the information regarding filing of necessary memorandum with appointed authority is as under:-

(a) Amount outstanding at the year end - Rs. NIL (Previous Year Rs. 4571710/-).

(b) Interest payable on delayed payments - Rs. NIL (Previous Year Rs. NIL ).

Note No. 8 : The Insurance claim filed with Insurance Company/IOC on account of damages/loss Caused due to fire in IOC Depot adjacent to our Sitapura Factory at Jaipur in Oct, 2009 is under process of settlement, part of which was already settled and received during the year.

Note No. 9 : Income tax Provision has been made taking into account the weighted deduction in respect of capital expenditure incurred for in- house R&D division to which the company is entitled under sec 35 (2AB) of the income tax act 1961, though formal approval in form 3CM is pending (in- house R&D facility has been approved) which is expected shortly. The amount of tax benefit so considered is Rs. 65 lakhs.

Note No. 10 : SEGMENT REPORTING

B. Business Segment (Secondary Segment)

The company is in the business of manufacture of Masterbatches and Engineering Plastic Compounds. Since the operations of Engineering Plastic Compounds contributes less than 10% of the company's total revenue/profits, the operations of Masterbatches is treated as one reportable business segment.

Note No. 11 : RELATED PARTY DISCLOSURES

A. Names of the Related parties "Holding Significant Influence" and "Key Management Personnel" under the Accounting Standard (AS-18) are as under:-

i. Parties holding significant influence

M/s.Trustline Capital Finance Ltd., Pluto Trade links Ltd. and G.K.S. Holdings Ltd.

ii. Key Management Personnel

Shri S.S. Poddar Managing Director

Shri R.K.Sureka Director & CEO

iii Relatives of the Key Management Personnel Smt. Kusum Poddar - Ex-Director of the company and wife of Managing Director.

Smt. Sushma Sureka - Wife of Director & CEO

Smt. Mahima P. Agarwal - Director of the Company and daughter of Managing Director.

Note No. 12 : Previous year figures have been regrouped/rearranged wherever considered necessary to conform to this year in view of the Revised schedule VI and paises have been rounded off to the nearest rupee.

Mar 31, 2011

1. (a) Contingent liabilities not provided for in respect of

2010-11 2009-10 (Rs.) (Rs.)

(i) Letter of Credit against purchase of raw material 57021853 30013226

(ii) Bonds Executed with Customs & Excise Authorities 3000000 43000000

(iii) Showcause notices in respect of Excise duty matters pending with adjudicating authority for necessary order. 3017941 2309941

(iv) Income Tax matter in appeals 153830 1280404

(v) Sales Tax & Entry tax demands not admitted by the company and for which appeals have been filed with appropriate authorities. 828817 66496

(vi) Bill discounting with banks [since realised Rs. 11056103/- (2009-10 Rs. Nil)] 32719896 NIL

(vii) Service Tax demand not admitted by the company and for which appeals have been filed with appropriate authorities. 24490 24490

(b) Estimated amount of contracts ( Net of advances) remaining to be executed on Capital Account and not provided for Rs. 3153062/- (2009-10 Rs. 42416172/-)

2. (a) Trading, Manufacturing & Other expenses includes Rs 12678558/- (2009-10 Rs. 9965648/-) in respect of Research & Development activities undertaken during the year.

(b) Miscellaneous Income includes Rs. 18040786/- (2009-10 Rs. 8374170/-) credited (Net) on account of Foreign Exchange fluctuation.

(c) Share Capital includes Rs. 2500000/- being amount on account of allotment of shares (for consideration other than Cash) upon amalgamation.

(d) Capital expenditure of Rs. 2782042/- (2009-10 Rs. 5700623/-) has been made during the year on Research & Development.

3. The Insurance claim filed with Insurance Company / IOC on account of damages / loss Caused due to fire in IOC Depot adjacent to our Sitapura Factory at Jaipur in Oct., 2009 is under process of settlement.

4. Provision for deferred tax liability (net) has increased by Rs. 3442702/-(2009-10 reduced by Rs. 3888718/-) during the year and is based on Accounting Standard (AS) 22 "Accounting for Taxes on Income" issued by The Institute of Chartered Accountants of India, in respect of timing differences between book profit and taxable profit.

5. The Company Dalmia Cement (Bharat) Ltd. had a scheme of de-merger whereby its assets were transferred to new companies namely Dalmia Bharat Sugar & industries limited and Dalmia Bharat Enterprises Ltd. Accordingly, shares of these companies were received in lieu of earlier holding of shares of Dalmia Cement (Bharat) Ltd.

6. Sundry Creditors include acceptances of Rs. 119961007 /- (2009-10 Rs. 96335988/-).

7. Details of Suppliers covered under the Micro, Small and Medium Enterprises Development Act, 2006, and which have furnished the information regarding filing of necessary memorandum with appointed authority is as under: -

a) Amount outstanding at the year end - Rs. 4571710/- (2009-10 Rs.214247/-)

b) Interest payable on delayed payments-Rs. NIL (2009-10 Rs. NIL)

11. Segment Reporting

A. Geographical Segment (Primary Segment)

(III) Capital Employed

Assets used in the Company's business are not capable of being specifically identified with any of the segments and it is not practicable to provide segmental disclosures in relation to total assets and liabilities with any reasonable degree of accuracy.

B. Business Segment (Secondary Segment)

The company is in the business of manufacture of Masterbatches and Engineering Plastic Compounds. Since the operations of Engineering Plastic Compounds contributes less than 10 % of the company's total revenue/profits , the operations of Masterbatches is treated as one reportable business segment.

8. Related Party Disclosures :-

A. Names of the Related parties "Holding Significant Influence" and "Key Management Personnel" under the Accounting Standard (AS-18) are as under: -

i. Parties holding significant influence

M/s. Trustline Capital Finance Ltd.,

Pluto Trade links Ltd. and G.K.S. Holdings Ltd.

ii. Key Management Personnel

Shri S.S. Poddar - Managing Director

Shri R.K.Sureka - Director & CEO

iii. Relatives of the Key Management Personnel

Smt. Kusum Poddar - Director of the company and wife of Managing Director.

Smt.SushmaSureka - Wife of Director & CEO

B. The following transactions were carried out with the related parties during the year :-

(ii) Key Management Personnel

There is no transaction other than managerial remuneration paid as per terms of appointment duly approved by the shareholders. Following are the details of such managerial remuneration:

9. Employee Benefits

The Company has calculated the various benefits provided to employees as under:-

A) Defined Contribution Plans

Provident Fund

B) State Plans

a) Employee State Insurance

b) Employee's Pension Scheme 1995

C) Defined Benefit Plans

a) Gratuity

b) Leave Encashment

10. Pursuant to Notification dated March 31,2009 issued by Ministry of Corporate Affairs, the company has exercised the option available under the newly inserted Paragraph 46 to the Accounting standard AS-11 "The effect of changes in Foreign Exchange Rates" to add or deduct the Foreign Exchange fluctuation to capital cost of the Assets. Accordingly, Rs. 247140/- has been capitalized for foreign exchange loss during the year (previous year Rs. 3292637/- decapitalized being forex gain) in the cost of Capital Assets.

11. Additional information pursuant to Part II of Schedule VI to The Companies Act, 1956.

12. Previous year figures have been regrouped/rearranged wherever considered necessary and paises have been rounded off to the nearest rupee.

Mar 31, 2010

2009-10 2008-09

1.(a) Contingent liabilities not provided for in respect of (Rs) (Rs)

(i Letter of Credit against purchase of raw material 3 00 13 226 3 71 70 526

(ii) Bonds.Executed with Customs & Excise Authorities 4 30 00 000 3 30 00 000

(iii) Showcause Notice in respect of Excise duty 23 09 941 26 04 859 matters pending with adjudicating authority for necessary order.

(iv) Income Tax matter in appeals 12 80 404 7 97 106

(v) Sales Tax demands not admitted by the company 66 496 4 39 487 and for which appeals have been filed with appropriate authorities.

(vi) Bill discounting with banks

(since realised Rs. NIL [2008-09 Rs.9059106/-]) NIL 90 59 106

(vii) Service Tax demand not admitted by the company and 24 490 24 490 for which appeals have been filed with appropriate authorities.

(b) Estimated amount of contracts (Net of advances) remaining to be executed on Capital Account and not provided for Rs.42416172/- (2008-09 Rs.4 74 000/-)

2. (a) Trading, Manufacturing & Other expenses includes Rs. 99 65 648/- (2008-09 Rs. 1 01 67 599/-) in respect of Research & Development activities undertaken during the year,.

(b) Miscellaneous Expenses includes:

i) Rs. NIL (2008-09 Rs. 9 20 278/-) towards bad debts written off.

ii) Rs. NIL (2008-09 Rs. 39 56175/-) debited (Net) towards Foreign Exchange fluctuation.

(c) Miscellaneous Income includes Rs. 83 74 170/- (2008-09 Rs. NIL) credited (Net) on account of Foreign Exchange fluctuation.

(d) Share Capital includes Rs. 25 00 000/- being amount on account of allotment of shares (for consideration other than Cash) upon amalgamation.

(e) Capital expenditure of Rs. 57 00 623/-(2008-09 Rs.21 53159/-) on Research & Development has been made during the year.

3. During the year, the Company has bought back 15 90 000 equity shares of Rs. 10 each at an average price of Rs. 35.71 per share from the open market through Stock Exchange operations and Buy back was completed on 9th February, 2010.The Company has incurred Rs. 13.67 lacs during the year in respect of the said Buy Back of Shares. Accordingly:

a) The aggregate face value of these shares of Rs. 159 Lacs (@ Rs. 10/- per share) has been reduced from the Paid up Equity Share Capital of the Company.

b) The balance price of Rs. 25.71 per share paid on these shares aggregating of Rs. 408.87 lacs has been adjusted from the General Reserve Account.

c) Rs. 159 lakhs has been transferred to Capital Redemption Reserve Account from General Reserve, as required under the provision of law.

4. There was a fire in IOC depot adjacent to our Sitapura factory at Jaipur in Oct, 2009 which caused damage to building and certain quantity of WIP / Finished Goods lying at shop floor in the factory. Necessary claims has been filed by the Company with the Insurance Company / IOC / RIICO which is under process of settlement. Amounts of various expenses & Raw material consumption excludes the amounts which has been .claimed from the Insurance Company / IOC/ RHCO for the loss suffered by the company as a result of the said fire.

5. Provision for deferred tax liability (net) has reduced by Rs. 38 88 718/- (2008-09 reduced by Rs. 14 49 943/-) during the year and is based on Accounting Standard (AS) 22 "Accounting for Taxes on Income" issued by The Institute of Chartered Accountants of India, in respect of timing differences between book profit and taxable profit.

6. Sundry Creditors include acceptances of Rs. 9 63 35 9887-(2008-09 Rs. 7 54 55176/-)

7. Details of Suppliers covered under the Micro, Small and Medium Enterprises Development Act, 2006, and which have furnished the information regarding filing of necessary memorandum with appointed authority is as under: -

a) Amount outstanding at the year end - Rs. 214 247/- (2008-09 Rs. 2115 893/-)

b) Interest payable oh delayed payments-Rs. NIL (2008-09 Rs. NIL)

8. Segment Reporting

(III) AsTetelSheCompanys business are not capable of being specifically identified with any of the segments Assets segmental disclosures inflation to total assets and liabiities with any any reasonable degree of accuracy.

B Business Segment (Secondary Segment)

The company is in the business of manufacture of Masterbatches and Engineering Plastic Compounds Since he operations of Masterbatches is treated as one reportable business segment.

9. Related Party Discolures:

(A) Names of the Ralated Parties "Holding Significant Influence" and "Key Management Personnel" under the Accounting Standard (ASt1 8) are as under:-

i. Parties holding significant influence

M/s. Trustline Capital Finance Ltd.,Pluto Trade links Ltd. and G.K.S. Holdings Ltd.

ii. Key Management Personnel

Shri S.S.Poddar - Managing Director

Shri R.K.Sureka - Directors CEO

lll. Relatives ot the Key Management Personnel

Smt. Kusum Pocldar - Director of the company and wife of Managing Director.

Smt. Sushma Sureka - Wife of Director & CEO

10. Pursuant to Notification dated March 31,2009 issued by Ministry of Corporate Affairs, the company has exercised the option available under the newly inserted Paragraph 46 to the Accounting standard AS-11 "The effect of changes in Foreign Exchange Rates" to add or deduct the Foreign Exchange fluctuation to capital cost of the Assets. Accordingly the net foreign exchange fluctuation amounting to Rs. 32.93 lacs has been decapitalised from cost of Capital Assets.(previous year Rs. 97.57 lacs had been added to cost of Capital Assets.)

11. Additional inlormation pursuant to Partll of Schedule Vl to The Companies Act, 1956.

12. Previous year figures have been regrouped/rearranged whersver considered necessary and paises have been rounded off to the nearest rupee.

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