Notes to Accounts of Polylink Polymers (India) Ltd.

Mar 31, 2018

1.1 Corporate information

Polylink Polymers (India) Limited (the Company) is a Public Limited Company domiciled in India, incorporated under the provisions of Companies Act, 1956. It’s shares are listed on Bombay Stock Exchange Limited. The company is leading manufacturer of various compounds for power cable, telephone cable and engineering plastic.

These Financial Statements were authorised for issue in accordance with a resolution of the Board of Directors of the Company in their meeting held on May 16, 2018.

1.2 Basis of preparation

These are the Company’s first financial statements as at and for the year ended 31 March 2018 that has been prepared in accordance with the Indian Accounting Standard (‘Ind AS’) notified under Section 133 of the Companies Act, 2013 read together with Rule 3 of the Companies (Indian Accounting Standards) Rules, 2015 and Companies (Indian Accounting Standards) Amendment Rules, 2016 as amended upto date, read with Ind AS based Schedule III, under the Companies Act, 2013.

For all periods up to and including the year ended March 31, 2017, the Company prepared its financial statements in accordance with accounting standards notified under the Section 133 of the Companies Act 2013, read together with paragraph 7 of the Companies (Accounts) Rules, 2014 (Indian GAAP). Refer to note 41 for information on First time adoption Ind AS.

The Company has consistently applied the accounting policies used in the preparation of its opening Ind AS Balance Sheet at April 1, 2016 throughout all periods presented, as if these policies had always been in effect and are covered by Ind AS 101, ‘First time adoption of Indian Accounting Standards’. The transition was carried out from accounting principles generally accepted in India (‘‘Indian GAAP’’) which is considered as the previous GAAP, as defined in IND AS 101. The reconciliation of effects of the transition from Indian GAAP to IND AS is disclosed in Note no. 42 to these financial statements.

The Company’s financial statements provide comparative information in respect to the previous year. In addition, the company presents Balance Sheet as at the beginning of the previous year, which is the transition date to IND AS.

The significant accounting policies used in preparing the financial statements are set out in Note no. 1.3 of the Notes to the Financial Statements.

The preparation of the financial statements requires management to make judgments, estimates and assumptions. Actual results could vary from these estimates. The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognized in the period in which the estimate is revised if the revision effects only that period or in the period of the revision and future periods if the revision affects both current and future years (refer Note no. 1.4 on significant accounting estimates, assumptions and judgments.)

IND AS 101 First-time adoption of Indian Accounting Standards allows first time adopters certain exemptions and exceptions from the retrospective application of certain requirements under IND AS, effective for April 1, 2016 opening balance sheet, as explained below :

Following exemptions availed from other IND AS as per Appendix D of IND AS 101 Deemed cost of Property, Plant and Equipment:

The Company has elected to measure items of Property, plant and equipment at the date of transition to Ind AS at their fair value. Company has used the fair values of assets, which is considered as deemed cost on transition. The impact on fair valuation of Property, plant and equipment on transition from previous GAAP is Rs. 1058.17 lakhs and accordingly impact (net of deferred tax)has been given in ‘Other equity’.

Estimates:

The estimates at April 01, 2016 and at March 31, 2017 are consistent with those made for the same dates in accordance with Previous GAAP (after adjustments to reflect any differences in accounting policies)

The estimates used by the Company to present these amounts in accordance with Ind AS reflect conditions at April 01, 2016, the date of transition to Ind AS and as of March 31, 2017.

Ind AS 101 treats the information received after the date of transition to Ind ASs as non-adjusting events. The entity shall not reflect that new information in its opening Ind AS Balance Sheet (unless the estimates need adjustment for any differences in accounting policies or there is objective evidence that the estimates were in error).

1.3 Significant accounting judgements, estimates and assumptions

For the purpose of calculating diluted earnings per share, the net profit or loss for the year attributable to equity shareholders of the Company and the weighted average number of shares outstanding during the year are adjusted for the effects of all dilutive potential equity shares.

The preparation of the Company’s financial statements requires management to make judgements, estimates and assumptions that affect the reported amounts of revenues, expenses, assets and liabilities, and the accompanying disclosures, and the disclosure of contingent liabilities. Uncertainty about these assumptions and estimates could result in outcomes that require a material adjustment to the carrying amount of assets or liabilities affected in future periods.

a) Property, plant and equipment

External adviser and internal technical team assessed the useful lives, residual value and fair value of property, plant and equipment as on 1st April 2016. Management believes that the assigned useful lives and residual value are reasonable.

On transition to IND AS, the Company has adopted optional exemption under IND AS 101 for fair valuation of property, plant and equipment, impact of fair valuation is provided in Note no 42 subsequent to fair valuation depreciation has been charged on fair valued amount less estimated salvage value.

b) Income taxes

Management judgment is required for the calculation of provision for income taxes and deferred tax assets and liabilities based on probability that taxable profit will be available against which the deductible temporary differences can be utilized. The Company reviews at each balance sheet date the carrying amount of deferred tax assets and liabilities. The factors used in estimates may differ from actual outcome which could lead to significant adjustment to the amounts reported in the standalone financial statements.

c) Contingencies

Management judgment’s required for estimating the possible outflow of resources, if any, in respect of contingencies/claim/litigations against the Company as it is not possible to predict the outcome of pending matters with accuracy.

d) Insurance claims

Insurance claims are recognised when the Company have reasonable certainty of recovery. Subsequently any change in recoverability is provided for.

e) Allowance for uncollectible trade receivables

Trade receivables generally do not carry any interest and are stated at their nominal value as reduced by appropriate allowances for estimated irrecoverable amounts. Individual trade receivables are written off when management deems them not to be collectible.

f) Impairment of financial assets

The impairment provisions for financial assets are based on assumptions about risk of default and expected loss rates. The Company uses judgement in making these assumptions and selecting the inputs to the impairment calculation, based on Company’s past history, existing market conditions as well as forward looking estimates at the end of each reporting period.

g) Fair value measurement of financial instruments

When the fair values of financial assets and financial liabilities recorded in the balance sheet cannot be measured based on quoted prices in active markets, their fair value is measured using valuation techniques including the DCF model. The inputs to these models are taken from observable markets where possible, but where this is not feasible, a degree of judgement is required in establishing fair values. Judgements include considerations of inputs such as liquidity risk, credit risk and volatility.

Changes in assumptions about these factors could affect the reported fair value of financial instruments.

1.4 Standards issued but not yet effective till March 31,2018

The Ministry of Corporate Affairs (MCA) has issued the Companies (Indian Accounting Standards) Amendment Rules, 2017 and Companies (Indian Accounting Standards) Amendment Rules, 2018 amending the following standard:

a) Ind AS 115 Revenue from Contracts with Customers

Ind AS 115 was issued in February 2015. The core principle of the new standard is that an entity should recognize revenue to depict the transfer of promised goods or services to the customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. Further, the new standard requires enhanced disclosures about the nature, amount, timing and uncertainty of revenue and cash flows arising from the entity’s contracts with customers.

This standard will come into force from accounting period commencing on or after 1st April, 2018. The Company will adopt the new standard on the required effective date. The Company is in the process of making an assessment of the impact of Ind - AS 115 upon initial application, which is subject to changes arising from a more detailed ongoing analysis.

b. Terms/ rights attached to issued equity shares:

i) The Company has only one class of shares referred to as equity shares having par value of Rs 5/- each. The holder of equity shares is entitled to one vote per share.

ii) In the event of liquidation of the Company, the holders of equity shares will be entitled to receive any of the remaining assets of the Company, after distribution of all preferential amounts. However, no such preferential amounts exist currently. The distribution will be in proportion to the number of equity shares held by the shareholders.

iii) Shares in respect of each class in the company held by its holding company rights ultimate holding company including shares held by or by subsidiaries or associates of the holding company or the ultimate holding company in aggregate : NIL

iv) Shares reserved for issue under options and contracts/commitments for the sale including the terms and amounts : NIL

v) There are no bonus issue or buy back of equity shares during the period of five years immediately preceding the reporting date.

Notes:-

a) Cash Credit/ Export Packing Credit from Axis Bank Ltd is secured by hypothecation of entire current assets (by way of first charge) including company’s stock (present & future ) of raw materials,semi finished and finished goods, consumable stores and book debts and also exclusive collateral charge on company’s assets located at Block No.229-230, Village-Valthera, Dholka District-Ahmedabad, 387810 admeasuring 38546 sq.mtrs.together with all buildings and structures there on and all plant and machinery.

2.Earnings per share (EPS)

a) Basic and diluted EPS amounts are calculated by dividing the profit for the year attributable to equity holders of the Company by the weighted average number of equity shares outstanding during the year.

b) The following reflects the income and share capital data used in the basic and diluted EPS computations:

c) There have been no transactions involving equity shares or potential equity shares between the reporting date and the date of authorisation of these financial statements.

3.Related party disclosures

In accordance with the requirements of IND AS -24 ‘Related Party Disclosures’, names of the related parties, related party relationship, transactions and outstanding balances where control exsists and with whom transactions have taken place during the period are:

(i) Names of related parties and related party relationship

(a) Associates

Kashipur Holdings Ltd India Glycols Limited

(b) Key management personnel and their relatives Shri R P Goyal (Director)

Shri Manoj Gohil (Chief Financial Officer)

Shri Ankit Vageriya (Company Secretary & Compliance Officer)

(ii) The following table provides the total value of transactions that have been entered into with related parties for the relevant financial period:

4.Employee benefits

A. Defined Contribution Plans - General Description

Provident Fund

The Company makes contribution towards employees’ provident fund . Under the schemes, the Company is required to contribute a specified percentage of payroll cost, as specified in the rules of the schemes to these defined contribution schemes.

The Company has contributed the following amounts to:

B. Defined Benefit Plans - General Description

Gratuity (Funded with L.I.C as group gratuity policy):

The gratuity plan is governed by the Payment of Gratuity Act, 1972. Under the Act, employees who have completed five years of service are entitled to specific benefit. The level of benefit provided depends on the member’s length of service and salary retirement age. The employee is entitled to a benefit equivalent to 15 days salary last drawn for each completed year of service with part thereof in excess of six months. The same is payable on termination of service or retirement or death whichever is earlier.

The present value of the obligation under such defined benefit plan is determined based on an actuarial valuation as at the reporting date using the projected unit credit method, which recognises each period of service as giving rise to additional unit of employee benefit entitlement and measures each unit separately to build up the final obligation. The obligations are measured at the present value of the estimated future cash flows. The discount rate used for determining the present value of the obligation under defined benefit plans is based on the market yields on Government bonds as at the date of actuarial valuation. Actuarial gains and losses (net of tax) are recognised immediately in the Other Comprehensive Income (OCI).

The following tables summarise the components of net benefit expense recognised in the statement of profit or loss and the funded status and amounts recognised in the balance sheet for the respective plans:

The sensitivity analysis presented above has been determined based on the method that extrapolates the impact on defined benefit obligation as a result of reasonable changes in key assumptions occurring at the end of the reporting period.

Sensitivities due to mortality and withdrawals are not material and hence impact of change not calculated. Sensitivities as to rate of inflation, rate of increase of pensions in payments, rate of increase of pensions before retirement & life expectancy are not applicable being a lump sum benefit on retirement.

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

The following methods and assumptions were used to estimate the fair values :-

1) Fair valuation of trade receivables, Cash and cash equivalents, other bank balances, loans & advances, trade payables and other current financial assets and liabilities approximate their carrying amounts largely due to the short-term maturities of these instruments.

2) Fair value of borrowings from banks, are estimated by discounting future cash flows using rates currently available for debt on similar terms and remaining maturities.

3) Fair value of security deposit received is computed using the present value technique with inputs that include future cash flows and discount rates that reflect assumptions that market participants would apply in pricing the financial instrument.

4) Fair value of security deposits given approximates the carrying value and hence, the valuation technique and inputs have not been given.

Fair value hierarchy

All financial instruments for which fair value is measured in the financial statements are categorised within the fair value hierarchy, described as follows:-

Level 1: This level of hierarchy includes financial assets that are measured by referene to quoted (unadjusted) prices in active markets for identical assets or liabilities.

Level 2: This level of hierarchy includes financial assets that are measured using inputs, other than quoted prices included within level 1, that are observable for such items, directly or indirectly.

Level 3: This level of hierarchy includes items measured using a valuation model based on assumptions that are neither supported by prices from observable current market transactions in the same instruments nor based on available market data.

* Management has assessed that trade receivables, Cash and cash equivalents, other bank balances, loans & advances, trade payables and other current financial assets and liabilities approximate their carrying amounts largely due to the short-term maturities of these instruments.

5.Financial risk management objectives and policies

The Company’s principal financial liabilities comprise of borrowings from banks, trade payables and other payables. The main purpose of these financial liabilities is to finance the Company’s operations and to provide guarantees to support its operations. The Company’s principal financial assets include trade and other receivables, other bank balances and cash and cash equivalent that derive directly from its operations.

The Company is exposed to market risk, credit risk and liquidity risk. The Company’s senior management oversees the management of these risks. The Company’s senior management is responsible to ensure that Company’s financial risk activities which are governed by appropriate policies and procedures and that financial risks are identified, measured and managed in accordance with the Company’s policies and risk objectives. The Board of Directors reviews and agrees policies for managing each of these risks, which are summarised below.

Market risk

Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of change in market price. Market risk comprise of interest rate risk, currency risk and other price risk, such as equity price risk and commodity risk.

The sensitivity analysis in the following sections relate to the position as at March 31, 2018 and March 31, 2017. Interest rate risk

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The following table demonstrates the sensitivity to a reasonably possible change in interest rates on that portion of loans and borrowings affected. With all other variables held constant, the Company’s profit before tax is affected through the impact on borrowings, as follows:

The assumed movement in basis points for the interest rate sensitivity analysis is based on the currently observable market environment

(b) Foreign currency risk

The Company is exposed to foreign exchange risk arising from foreign currency transactions primarily with respect to USD. Foreign exchange risk arises from future commercial transactions and recognised asset and liabilities denominated in a currency that is not the Company’s functional currency. The Company imports raw materials and exports finished goods which exposes it to foreign currency risk. The following tables demonstrate the sensitivity to a reasonably possible change in USD exchange rates, with all other variables held constant. The impact on the Company’s profit before tax is due to changes in the fair value of monetary assets and liabilities.

Commodity price risk

The Company is affected by the price volatility of certain commodities. Its operating activities require the purchase of raw material therefore, requires a continuous supply of certain raw materials. To mitigate the commodity price risk, the Company has an approved supplier base to get competitive prices for the commodities and to assess the market to manage the cost without any comprise on quality.

Credit Risk

Credit risk is the risk that counterparty will not meet its obligations under a financial instrument or customer contract, leading to a financial loss. The Company is exposed to credit risk from its operating activities (primarily trade receivables) and from its financing activities, including deposits with banks. Management has a credit policy in place and the exposure to credit risk is monitored on an ongoing basis. Credit evaluations are performed on all customers requiring credit over a certain amount.

Trade receivables

Trade receivables are subject to credit limits, controls and approval processes. Basis the historical experience, the risk of default in case of trade receivable is low. Provision is made for doubtful receivables on individual basis depending on the customer ageing, customer category, specific credit circumstances and the historical experience of the Company.

Based on the historical data, loss on collection of receivable is not material hence no additional provision considered.

The ageing of trade receivables at the reporting date was:

Liquidity risk

The Company monitors its risk of a shortage of funds doing a liquidity planning exercise. The Company’s objective is to maintain a balance between continuity of funding and flexibility through the use of short term borrowing facilities like export packing credit and cash credit facility. The Company’s treasury function reviews the liquidity position on an ongoing basis. The Company assessed the concentration of risk with respect to refinancing its debt and concluded it to be low. The Company has access to a sufficient variety of sources of funding and surplus cash and cash equivalent on the basis of expected cash flow. The table below summarises the maturity profile of the Company’s financial liabilities based on contractual undiscounted payment :

6.Capital Risk Management

The Company’s policy is to maintain an adequate capital base so as to maintain creditor and market confidence and to sustain future development. Capital includes issued capital and all other equity reserves attributable to equity holders. The primary objective of the Company’s capital management is to maintain an optimal structure so as to maximize the shareholder’s value. In order to strengthen the capital base, the company may use appropriate means to enhance or reduce capital, as the case may be.

The Company is not subject to any external imposed capital requirement. The company monitors capital using a gearing ratio, which is net debt divided by total capital plus net debt. The Company includes within net debt, interest bearing loans and borrowings, trade and other payables, less cash and cash equivalents.

No changes were made in the objectives, policies or processes for managing capital during the periods ended March 31, 2017 and March 31, 2016.

7. SEGMENT INFORMATION

As per Ind AS 108 identification of segment is based on the manner in which the entity’s Chief Operating decision makers’ (CODM) review the business components regularly to make decisions about allocating resources to segment and in assessing its performance.

The Chief Operating decision maker reviews business performance at an overall Company level as one segment “Polymeric compounds business”

a) Summary of total revenue by Geographical area is as follows :

b) Summary of non- current assets by geographical location is as follows:

All non-current assets of the Company are located in India.

c) Revenue from major customer

The above information’s regarding micro, small and medium enterprise has been determined to the extent such parties have been identified of information available with the Company and as certified by the management.

8.First-time adoption of Ind AS

These financial statements, for the period ended March 31, 2018, are the first the Company has prepared in accordance with Ind AS. For periods up to and including the year ended March 31, 2017, the Company prepared its financial statements in accordance with accounting standards notified under section 133 of the Companies Act 2013, read together with paragraph 7 of the Companies (Accounts) Rules, 2014 (Previous GAAP).”Accordingly, the Company has prepared financial statements which comply with Ind AS applicable for periods ending on March 31, 2018, together with the comparative period data as at and for the year ended March 31, 2017, as described in the summary of significant accounting policies. In preparing these financial statements, the Company’s opening balance sheet was prepared as at April 01, 2016, the Company’s date of transition to Ind AS.

This note explains exemptions availed by the Company in restating its Previous GAAP financial statements, including the balance sheet as at April 01, 2016 and the financial statements as at and for the year ended March 31, 2017. Exemptions applied:

1. Mandatory exceptions :

a) Estimates

The estimates at April 01, 2016 and at March 31, 2017 are consistent with those made for the same dates in accordance with Previous GAAP (after adjustments to reflect any differences in accounting policies) “The estimates used by the Company to present these amounts in accordance with Ind AS reflect conditions at April 01, 2016, the date of transition to Ind AS and as of March 31, 2017.”Ind AS 101 treats the information received after the date of transition to Ind ASs as non-adjusting events. The entity shall not reflect that new information in its opening Ind AS Balance Sheet (unless the estimates need adjustment for any differences in accounting policies or there is objective evidence that the estimates were in error).

b) De-recognition of financial assets:

The Company has applied the de-recognition requirements in Ind AS 109 prospectively for transactions occurring on or after the date of transition to Ind AS.

c) Classification and measurement of financial assets:

i. Financial Instruments: (Security deposits received and security deposits paid):

Financial assets like security deposits received and security deposits paid, has been classified and measured at amortised cost on the basis of the facts and circumstances that exist at the date of transition to Ind ASs. Since, it is impracticable for the Company to apply retrospectively the effective interest method in Ind AS 109, the fair value of the financial asset or the financial liability at the date of transition to Ind AS by applying amortised cost method, has been considered as the new gross carrying amount of that financial asset or the financial liability at the date of transition to Ind AS.

d) Impairment of financial assets: (Trade receivables and other financial assets)

At the date of transition to Ind ASs, the Company has determined that there is no increase in credit risk since the initial recognition of a financial instrument.

2 . Exemptions;

Ind AS 101 allows first time adopters certain exemptions from the retrospective application of certain requirements under Ind AS. The Company has applied the following exemptions: a) Deemed cost of Property, Plant and Equipment

The Company has elected to measue items of Property, plant and equipment at the date of transition to Ind AS at their fair value. Company has used the fair values of assets, which is considered as deemed cost on transition. The impact on fair valuation of Property, plant and equipment on transition from previuos GAAP is ‘ 1058.17 lakhs and accordingly impact has been given in ‘Other equity’.

9.Principal differences between Ind AS and Previous GAAP

The following reconciliations provide a quantification of the effect of significant differences arising as a result of transition from Previous GAAP to Ind AS in accordance with Ind AS 101:

Equity as at April 1, 2016

Equity as at March 31, 2017

Profit/(Loss) for the year ended March 31, 2017

Balance Sheet as at April 1, 2016

Balance Sheet as at March 31, 2017

Other Equity Reconciliation

Footnotes to the reconciliation of equity as at April 01, 2016 and March 31, 2017 and profit or loss for the year ended March 31, 2017

(a) Property, Plant and Equipment (PPE)- Fair Value as Deemed cost in IND AS

The Company has elected to measue the items of Property, plant and equipment at the date of transition to Ind AS at their fair value which is considered as deemed cost on transition. This has resulted in an increase in the value of PPE by ‘ 1058.17 lakhs with corresponding credit to retained earnings by ‘ 791.59 lakhs (net of deferred tax liability of ‘ 266.58 lakhs).

Above has resulted in additional depreciation charge to Statement of Profit & Loss by ‘ 14.26 lakhs for the year ended 31st March, 2017.

(b) Deferred Tax

The Company has accounted for deferred tax on the various adjustments between previous GAAP and Ind AS at the tax rate at which they are expected to be reversed.

MAT entitlement credit being of the nature of deferred tax, on transition to Ind AS, MAT credit entitlement of ‘ 59.82 lakhs and 97.36 lakhs for April 1, 2016 and March 31, 2017 respectively has been regrouped under deferred tax assets(net) from Current tax assets(net).

(c) Security deposits received

Under the previous GAAP, interest free lease security deposits received (that are refundable in cash on completion of the lease term) are recorded at their transaction value. Under Ind AS, all financial assets/liabilities are required to be recognised at fair value. Accordingly, the company has fair valued these security deposits received under Ind AS. Difference between the fair value and transaction value of the security deposit has been recognised as deferred rental income. Consequent to this change, the amount of security deposits decreased by ‘ 1.02 lakhs as at 31st March, 2017 (1st April, 2016 - Nil). The deferred rental income increased by Rs.0.97 lakhs as at 31st March, 2017 (1st April, 2016 - Nil). The profit for the year and total equity as at 31st March, 2017 increased by Rs.0.04 lakhs due to recognition of the deferred rental income of Rs.0.24 lakhs which is partially off-set by the notional interest expense of Rs.0.20 lakhs recognised on security deposits.

(d) Excise Duty

Under previous GAAP, revenue from sale of products was presented exclusive of excise duty. Under Ind AS, revenue from sale of goods is presented inclusive of excise duty. The excise duty paid is presented on the face of the Statement of Profit and Loss as part of expenses. This change has resulted in an increase in total revenue and total expenses for the year ended 31st March, 2017 by ‘ 253.49 lakhs. There is no impact on the total equity and profit.

(e) Revenue, Selling & distribution expenses

Under Ind AS, the Company recognises revenue at the fair value of consideration received or receivable. Any sales incentive, discounts or rebates in any form, including cash discounts given to customers will be considered as selling price reductions and accounted as reduction from revenue. Under previous GAAP, some of these costs were included in ‘selling and distribution’ expenses.

(f) Remeasurements of post-employment benefit obligations

Under Ind AS, remeasurements i.e. actuarial gains and losses and return on plan assets, excluding amounts included in the net interest expense on the net defined benefit liability are recognised in other comprehensive income instead of profit or loss. Under the previous GAAP, these remeasurements were forming part of the profit or loss for the year. As a result of this change, the profit for the year ended 31st March, 2017 decreased by ‘ 4.09 lakhs. There is no impact on the total equity as at 31st March, 2017.

10. Previous Year’s figures have been regrouped/rearranged/recast whereever considered necessary.

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Mar 31, 2015

1. The Company has only one class of shares referred to as equity shares having par value of Rs 5/- each holder of equity shares is entitled to one vote per share.

2. Shares in respect of each class in the company held by its holding company rights ultimate holding company including shares held by or by subsidiaries or associates of the holding company or the ultimate holding company in aggregate : NIL

3. Shares reserved for issue under options and contracts/commitments for the sale of shares/disinvestment, including the terms and amounts : NIL

4. In the event of liquidation of the Company, the holders of equity shares will be entitled to receive any of the remaining assets of the Company, after distribution of all preferential amounts.

However, no such preferential amounts exist currently. The distribution will be in proportion to the number of equity shares held by the shareholders.

5. There is no change in number of share outstanding as at 31st March, 2015 & 31st March, 2014.

6. Loan from related parties were repayable as per agreement (i.e. more than 12 months from the date of financial)

7. Loans from other parties were repayable as per agreement (i.e. more than 12 months from the date of financial)

8. Loan (Cash Credit/ Working Capital) from Axis Bank Ltd is secured by hypothecation of entire current assets(by way of first charge) including company's stock (present & future ) of Raw materials,Semi finished and finished goods,Consumable stores and Book Debts and also exclusive collateral charge on company's assets located at Block No.229-230,Village- Valthera,Dholka District-Ahmedabad,38710 admeasuring 38546 sq.mtrs.together with all buildings and structures there on and all plant and machinery and guaranteed by the personal guarantee of Mr. U.S. Bhartia, Chairman of the Company.

9. Cash credit/working capital loan from bank is payable on demand.

10. Letter of credit loan from bank is repayable as per the terms of agreement (within 12 months from the date of financial).

11. Contingent LiabiLites, not provided for in respect of the following:

As at As at Year ended Year ended 31st March,2015 31st March,2014 (Rs. In lacs) (Rs. In lacs)

Claims against the company not 6.39 6.39 acknowledged as debt

12. Commitments As At 31st March 2015 - NIL (P.Y. - NIL)

13. Under the Micro, Small and medium Enterprise Development Act,2006 Which came into force on October 2,2006 certain disclosure are required to be made relating to Micro, Small and Medium Enterprise. Based on the information available with the company, there are no amounts payable to micro and small enterprises within the meaning of the Micro, Small and medium Enterprise Development Act,2006.

14. Unhedged Foreign Exchange Exposure : Debtors Rs.180.57 (Previous year 259.33 lacs).

15. Selling and Distribution expenses include Rs.12.13 Lacs as Commission/Discount.(Previous year Rs.12.86 Lacs)

16. Excise duty Expenses represents provision on Closing Stocks for domestic sales.

17. There are certain leasing arrangement for Office premises / House accomodation.Monthly charges in this respect are charged to P & L Account.

18. The company has given Office premises & Godown on lease to one of the associates company. The rental income of Rs.12.00 lacs (P/y - Rs 12.00 lacs) has been recognised in the accounts for the year.

19. DEFERRED TAX:

The institute of Chartered Accountants of India,has made mandatory,w.e.f.1.4.2001,the Accounting standard- 22(AS-22) in respect of 'Accounting for Taxation of Income'. On the basis of virtual certainty of availability of sufficient future taxable income and also based upon the data available,the company has computed defered tax liability and assets as at 31.03.2015 as under and recognised the Deferred Tax Asset in respect of Past Losses and for other items:

20. There is no separate reportable segment as the company is predominently engaged in only one segment,i.e.'Polymers Compounding' therefore,Accounting standard-17 to Segment Reporting,issued by the Institute of Chartered Accountants of India,is not applicabl to it.

i. For Provident fund Defined Contribution Plans

Total amount of Provident fund Expenses recognised in the Profit & Loss Account is Rs.7.85 lacs,( Previous year Rs.7.71 lacs)

21. Related party disclosure as require by Accounting Standard-18 (AS-18) "Related Parties Disclosure" issued by the Institute of Chartered Accountants Of India are given below :

Details of Related Parties

Description of Relationship Name of the related Parties

Associates Kashipur Holdings Ltd India Glycols Ltd

Key Management Personnel Mr.R.P.Goyal

22. Pursuant to The Companies Ac, 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. A sum of Rs.67.73 Lacs in respect of assets where useful life became nil at the beginning of the financial year, has been charged to the statement of profit & loss for the year. However, as a result of such change, there is no material impact on the depreciation expenses for the year.

23. Previous period's figures have been regrouped / rearranged whererver considered necessary to confirm to this year's classification.

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Mar 31, 2014

1. Note:-

1.1 The Company has only one class of shares referred to as equity shares having par value of Rs 5/- Each holder of equity shares is entitled to one vote per share.

1.2 Shares in respect of each class in the company held by its holding company rights ultimate holding company including shares held by or by subsidiaries or associates of the holding company or the ultimate holding company in aggregate : NIL

1.3 Shares reserved for issue under options and contracts/commitments for the sale of shares/disinvestment, including the terms and amounts : NIL

1.4 In the event of liquidation of the Company, the holders of equity shares will be entitled to receive any of the remaining assets of the Company, after distribution of all preferential amounts.

However, no such preferential amounts exist currently. The distribution will be in proportion to the number of equity shares held by the shareholders.

1.6 There is no change in number of share outstanding as at 31st March, 2014 & 31st March, 2013.

2. Note:-

2.1 Finance Lease obligations are secured by hypothecation of specific assets taken on such lease. The same are repayable as per the terms of agreement.

2.2 Loan from related parties is repayable as per agreement (i.e. more than 12 months from the date of financial)

2.3 Loans from other parties is repayable as per agreement (i.e. more than 12 months from the date of financial)

3. Note:-

3.1 Loan from Axis Bank Ltd is secured by hypothecation of current assets(by way of first charge) including company''s stock (present & future ) of Raw materials,Semi finished and finished goods,Consumable stores and Book Debts and also by way of second charge over all immovable properties of the company and personally guaranteed by one Director and also by way of corporate guarantee of an associate company,Namely Facit Commosales Private Ltd.and further pledge of their or its share holdings in certain company.

3.2 Cash credit/working capital loan from bank is payable on demand.

3.3 Letter of credit loan from bank is repayable as per the terms of agreement (within 12 months from the date from financial).

4. Contingent LiabiLites, not provided for in respect of the following:

As at As at Year ended Year ended 31st March,2014 31st March,2013 (Rs. In lacs) (Rs. In lacs)

Claims against the company not acknowledged as debt 6.39 6.39

4.1 Commitments As At 31st March 2014 - NIL

4.2 Under the Micro, Small and medium Enterprise Development Act,2006 Which came into force on October 2,2006 certain disclosure are required to be made relating to Micro, Small and Medium Enterprise. Based on the information available with the company, there are no amounts payable to micro and small enterprises within the meaning of the Micro, Small and medium Enterprise Development Act,2006.

5. Unhedged Foreign Exchange Exposure : Debtors Rs.259.33 (Previous year 205.01 lacs).

6. Selling and Distribution expenses include Rs.12.86 Lacs as Commission/Discount.(Previous year Rs.13.20 Lacs)

7. The company identified during 2008-09 and also during the current financial year 2013-14 certain fixed assets,which were not under use or were unusable / surplus,the realisable value (estimated by management) was lower by Rs.13.25 lacs (Rs.19.28 lacs during 2008-09) which was provided i.e. during the year 2013-14 provision of Rs 6.03 has been reversed.

8. Excise duty Expenses represents provision on Closing Stocks for domestic sales.

9. As the net worth of the company fully eroded as per the Audited Balance sheet of the company as at 31.03.2009,the company has been referred to BIFR under the SICA provisions. The Rehabilitation Scheme as prepared by IDBI, as the operating Agency, has been approved by BIFR on 12th May 2012.

However the company has been discharged from the purview of SICA/BIFR as per order dated 19th March,2013.

10. Trade payables,Trade receivable and Advances are subject to confirmations.

11. 1 There are certain leasing arrangement for Office premises / House accomodation.Monthly charges in this respect are charged to P & L Account.

12. 2 The company has given Office premises & Godown on lease to one of the associates company. The rental income of Rs.12.00 lacs (P/y - Rs 17.40 lacs) has been recognised in the accounts for the year.

13. There is no separate reportable segment as the company is predominently engaged in only one segment,i.e.''Polymers Compounding'' therefore,Accounting standard-17 to Segment Reporting,issued by the Institute of Chartered Accountants of India,is not applicable to it.

(a) For Provident fund Defined Contribution Plans

Total amount of Provident fund Expenses recognised in the Profit & Loss Account is Rs.7.71 lacs, (Previous year Rs.8.23 lacs)

14. Previous period''s figures have been regrouped / rearranged whererver considered necessary to confirm to this year''s classification in view of the Schedule VI.

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Mar 31, 2013

1 Corporate Information

Polylink Polymers (India) Limited (the Company) is a public company domiciled in India and incorporated under the provisions of Companies Act 1956. It''s shares are listed on Bombay Stock Exchange Limited. The Company is leading manufacturer of various compounds for Power cable, Telephone cable and Engineering Plastics.

2.1. 1 Contingent liabilities, not provided for in respect of the following:

AS AT YEAR AS AT YEAR ENDED ENDED 31ST MARCH,2013 31ST MARCH,2012 (Rs. In lacs) (Rs. In lacs)

Claims against the company not acknowledged as debt 6.39 10.81

2.2. 2 Commitments As At 31st March 2013 NIL NIL

2.3 Under the Micro, Small and medium Enterprise Development Act,2006 Which came into force on October 2,2006 certain disclosure are required to be made relating to Micro, Small and Medium Enterprise. Based on the information available with the company, there are no amounts payable to micro and small enterprises within the meaning of the Micro, Small and medium Enterprise Development Act,2006.

2.4.1 Foreign exchange variation (Net) dealt with in the profit and loss account Rs. 10.44 lacs (Credit) (previous year Rs.1.73 lacs (Debit)),details of the same are as under :

2.4.2 Unhedged Foreign Exchange Explosure : Debtors Rs.205.01 lacs.

2.5 Selling and Distribution expenses include Rs.13.20 Lacs as Commission/Discount. (Previous year Rs.13.05 Lacs)

2.6 The company identified during 2008 - 09 and also during the current financial year 2012 - 13 certain fixed assets, which were not under use or were unusable / surplus, the realisable value (estimated by management)was lower by Rs.19.28 lacs (Rs.16.00 lacs during 2008-09) wich was provided .

2.7 Write downs and Write offs :During the year the Company reviewed the recoverability of claims and upon such review following amounts were written off / written back :

2.8 Excise duty Expenses represents provision on Closing Stocks for domestic sales.

2.9.1 Interest is payable commencing from 1.1.2010 as past interest has been deferred by the said SASF. Interest has been provided from 01.01.2011 to 31.03.2013 at the agreed rate in these Accounts and the same is payable in six equal installments commencing from 15th,April 2013.

2.9.2 As the net worth of the company fully eroded as per the Audited Balance sheet of the company as at 31.03.2009, the company has been referred to BIFR under the SICA provisions. The Rehabilitation Scheme as prepared by IDBI, as the operating Agency, has been approved by BIFR on 12th May 2011. However the company has been discharged from the purview of SICA/BIFR as per order dated 19th March,2013.

2.10 Trade payables, Trade receivable and Advances are subject to confirmations.

2.11.1 There are certain leasing arrangement for Office premises / House accomodation. Monthly charges in this respect are charged to P & L Account.

2.11.2 The company has given Office premises & Godown on lease to one of the associates company. The rental income of Rs. 17.40 lacs (P/y - Rs 11.80 lacs) has been recognised in the accounts for the year.

2.12 DEFERRED TAX:

The institute of Chartered Accountants of India, has made mandatory, w.e.f.1.4.2001, the Accounting standard-22(AS-22) in respect of Accounting for Taxation of Income''. On the basis of virtual certainty of availability of sufficient future taxable income and also based upon the data available, the company has computed defered tax liability and assets as at 31.03.2013 as under and recognised the Deferred Tax Asset in respect of Past Losses and for other items:

2.13 There is no separate reportable segment as the company is predominently engaged in only one segment,i.e.'' Polymers Compounding'' therefore, Accounting standard-17 to Segment Reporting, issued by the Institute of Chartered Accountants of India, is not applicabl to it.

2.14 Additional Information pursuant to Note 5 of Part II of the Revised Schedule VI of the Companies Act 1956 :

2.15 Previous period''s figures have been regrouped / rearranged whererver considered necessary to confirm to this year'' classification in view of the Schedule VI.

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Mar 31, 2012

1 Corporate Information

Polylink Polymers (India) Limited (the Company) is a public company domiciled in India and incorporated under the provisions of Companies Act 1956. It's shares are listed on Bombay Stock Exchange Limited.

The Company is leading manufacturer of various compounds for Power cable, Telephone cable and Engineering Plastics.

2.1.1 a) Addition to the capital during the Year:

6601000 Equity shares of Rs 5/-allotted and issued pursuant to conversion of loan into equity to promoters group,

b) Reduction of the capital during the Year:

During the year, in terms of BIFR order, the company has reduced paid up value of each equity shares from Rs 10/- to Rs 5/- and the resultant amount has been credited to "Surplus/(Deficit)" vide Note No 2.2.

2.1.2 The Company has only one class of shares referred to as equity shares having par value of Rs 5/- Each holder of equity shares is entitled to one vote per share.

2.1.3 Shares in respect of each class in the company held by its holding company rights ultimate holding company including shares held by or by subsidiaries or associates of the holding company or the ultimate holding company in aggregate : NIL

2.1.4 Shares reserved for issue under options and contracts/commitments for the sale of shares/disinvestment, including the terms and amounts : NIL

2.1.5 In the event of liquidation of the Company, the holders of equity shares will be entitled to receive any of the remaining assets of the Company, after distribution of all preferential amounts.

However, no such preferential amounts exist currently. The distribution will be in proportion to the number of equity shares held by the shareholders.

2.1.6 The details of shareholders holding more than 5% shares as at 31st March,2012 is set out below:

Note:-

1 Term loans facilities from IDBI and / or Negotiated Settelment Dues of Stressed Assets Stabilization Fund (SASF) are secured by way of charge by deposit of title deeds and mortgage of all immovable properties of the compay including its movable plants & machinery, machinery spares , tools and other movable both present and future (save and except - book debts) subject to the charge created / to be created by the company in favour of its bankers on the company's stock and book debts to secure its working capital requirement; and personally guaranteed by a Director and an Ex-Director of the company . Also certain promotors / Group companies / Associates belonging to the promoters have pledged their certain shareholdings. The same is payable in 12 equal monthly instalments commencing from 15th April 2012 to 15th March 2013.

2 Finance Lease obligations are secured by hypothecation of specific assets taken on such lease. The same are repayable as per the terms of agreement.

3 The deferment of electricity duty from Goverment is repayable in 60 equal monthly instalments commencing from 1st April 2009 to 31st March 2014.

4 Interest on Term loan amounting to Rs 79.96 lacs from IDBI/SASF is repayable in 6 equal installments commencing from 15th April 2013.

5 Loan from related parties is payable as per BIFR Scheme.

Note:-

1 Working capital facilities from Axis Bank Ltd is secured by hypothecation of current assets(by way of first charge) including company's stock (present & future ) of Raw materials,Semi finished and f'nished goods,Consumable stores and Book Debts and also by way of second charge over all immovable properties of the company and personally guaranteed by one Director ,and also by way of corporate guarantee of an associate company,Namely Facit Commosales Private Ltd.and further pledge of their or its share holdings in certain company.

2 Cash credit/working capital loan from bank is payable on demand.

3 Letter of credit loan from bank is repayable as per the terms of agreement.

4 Loans from other parties are payable on demand.

2.2.1 Contingent liabilites, not provided for in respect of the following:

As at As at Year ended Year ended 31st March,2012 31st March,2011 (Rs. In lacs) (Rs. In lacs)

Claims against the company not acknowledged as debt 10.81 10.81

2.2.2 Commitments As At 31st March 2012----NIL

2.3 Under the Micro, Small and medium Enterprise Development Act,2006 Which came into force on October 2,2006 certain disclosure are required to be made relating to Micro, Small and Medium Enterprise. The company is in , the process of obtaining relevant information from its suppliers about their coverage under the Act. Since the relevent information is not readily available, no disclosures could be made in the Accounts.

2.4 1 Unhedged Foreign Exchange Explosure : Debtors Rs.123.52 lacs.

2.5 Selling and Distribution expenses include Rs.13.05 Lacs as Commission/Discount.(Previous year Rs.13.88 Lacs)

2.6 The company identified during 2008-09 certain fixed assets,which were not under use or were unusable / surplus,the relisable value (estimated by management) was lower by Rs. 16.00 lacs which was provided.There are no further loss as to assets impairment during the year.

2.7 Write downs and Write offs :During the year the Company reviewed the recoverability of claims and upon such review following amounts were written off / written back :

2.8 Excise duty Expenses represents provision on Closing Stocks for domestic sales.

2.8 1 Stressed Assets Stabilization Fund (SASF),to whom IDBI assigned its debt recoverable from the company,has gave its approval of Negotiated Settelment (NS)(Letter dated June 27,2005 vide letter no.BY/ SASF/ P0LPIL/906 and further amended by letter dated July 16,2005 vide letter No.BY/SASF/POLPIL/1146) at a sum of Rs.15.50 crores in full and and final settelement of its principal,Interest and over due interest etc.accrued up to 31.03.2012for which cut off date was determinded as 01.04.2005. The said SASF has rescheduled ,repayment dates vide its letter no BY/SASF/Polylink/461 dated 28th May 2010.

2.8 2 Interest is payable commencing from 1.1.2010 as past interest has been deferred by the said SASF.

Interest has been provided from 01-01.2011 to 31.03.2012 at the agreed rate in these Accounts and the same is payable in six equal installments commencing from 15th,April 2013.

2.8 3 As the net worth of the company fully eroded as per the Audited Balance sheet of the company as at 31.03.2009,the company has been referred to BIFR under the SICA provisions. The Rehabilitation Scheme as prepared by IDBI, as the operating Agency, has been approved by BIFR on 12th May 2012.

2.9 Trade payables,Trade receivable and Advances are subject to confirmations.

2.10 1 There are certain leasing arrangement for Office premises / House accomodation.Monthly charges in this respect are charged to P & L Account.

2.10 2 The company has given Office premises & Godown on lease to one of the associates company. The rental income of Rs. 11.80 lacs (P/y - Rs 7.80 lacs) has been recognised in the accounts for the year.

2.11 DEFERRED TAX:

The institute of Chartered Accountants of India,has made mandatory,w.e.f.l.4.2001,the Accounting standard- 22(AS-22) in respect of 'Accounting for Taxation of Income'. On the basis of virtual certainty of availability of sufficient future taxable income and also based upon the data available,the company has computed defered tax liability and assets as at 31.03.2012 as under and recognised the Deferred Tax Asset in respect of Past Losses and for other items:

2.12 There is no separate reportable segment as the company is predominently engaged in only one segment,i.e.' Polymers Compounding' therefore,Accounting standard-17 to Segment Reporting,issued by the Institute of Chartered Accountants of India,is not applicabl to it.

2.13 Previous period's figures have been regrouped / rearranged whererver considered necessary to confirm to this year's classification in view of the Revised Schedule VI.

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Mar 31, 2010

A. Contingent liabilites, not provided for in respect of the following:

AS AT YEAR AS AT YEAR ENDED ENDED 31ST MARCH,2010 31ST MARCH.2009 (Rs.) (Rs.)

i) Claims against the company not acknowledged as debt 1,080,850 1,080,850

ii) Bills discount with Axis Bank Ltd 0 890,695

B Under the Micro, Small and medium Enterprise Development Act,2006 Which came into force on October 2,2006certain disclosure are required to be made relating to Micro, Small and Medium Enterprise. The company is in the process of obtaining relevant information from its suppliers about their coverage under the Act. Since the relevent information is not readily available, no disclosures could be made in the Accounts

C. i) Selling and Distribution expenses include Rs. 13.16 Lacs as Commission/Discount.(Previous year Rs.20.20 Lacs)

ii) The company identified during 2008-09 certain fixed assets.which were not under use or were unusable / surplus, the relisable value (estimated by management) was lower by Rs. 15,99,586/- which was provided.There are no further loss as to assets impairment during the year.

v) Exciseduty Expenses represents provision on Closing Stocks.

D. i) Stressed Assets Stabilization Fund (SASF).to whom IDBI assigned its debt recoverable from the company.has gave its approval of Negotiated Settelment (NS)(Letter dated June 27,2005 vide letter no.BY/ SASF/POLPIL/906 and further amended by letter dated July 16,2005 vide letter No.BY/SASF/ POLPIL/1146) at a sum of Rs.15.50 crores in full and and final settelement of its principal,Interest and over due interest etc.accrued up to 31,03.2005,for which cut off date was determinded as 01.04.2005 ;against the total outstading of Rs.27,72,66,619/- and accordingly a sum of Rs. 12,22,66,619/-was written back as Excess Provision (As Exceptional Income) in the year 2005-06. The said SASF has rescheduled ,from time to time ,repayment dates.however up to 31.03.2010,the total amount of dafaults on account of repayment is Rs.Nil (Previous year Rs. 110.00 lacs).The company is contigently liable for past waivers in case of dafaults.

ii) Interest is payable commencing from 1.1.2010 as past interest has been deffered by the said SASF.Interest has been provided from 01.01.2010 to 31.03.2010 at the agreed rate.

iii) As the net worth of the company has been fully eroded as per the Audited Balance sheet of the company as at 31.03.2009, the company has been refferedto BIFR under theSICA provisions.The rehabilitation scheme is under preperation by IDBI,being the Operating Agency appointed by the BIFR.

E. Though Companys entire net worth has been eroded ,it has prepared its accounts on a Going Concern Basis as the management is hopeful that company can be revived in view of the Negotiated Settlement finalised with the Stressed Assets Stabilization Fund (SASF) to whom the IDBI has assigned its debt recoverable from the company and with the continued support of its promoters / promoter group companies as well as the reference to BIFR made by the Company, and the Rehabilation scheme being framed by IDBI

F. Debtors .Creditors and Advances are subject to confirmations.

G. a) There are certain leasing arrangement for Office premises / House accomodation.Monthly charges in this respect are charged to P & L Account.

b) The company has given Office premises on lease to one of the associates company. The rental income of Rs.5.40 lacs has been recognised in the accounts for the year.

H DEFERRED TAXATION :

The institute of Chartered Accountants of lndia,has made mandatory, w.e.f.1.4.2001,the Accounting standard-22(AS-22) in respect of Accounting for Taxation of Income Accordingly.the company has computed deferred tax liability and assets as at 30.03.2010 and also based upon the data available ,it is to creat deferred tax assets. However ,no such assets has been recognised keeping in view of preadunce and also as the company is not virtually certain supported by convincing evidence that sufficient future taxable income will be available against which such deferred tax assets can be realised.

I There is no separate reportable segment as the company is predominently engaged in only one segmentj.e.,Polymers Compounding therefore.Accounting standard-17 to Segment Reporting,issued by the Institute of Chartered Accountants of India.is not applicabl to it.

(b) For Provident fund Defined Contribution Plans Total amount of Provident fund Expenses recognised in the Profit & Loss Account is Rs. 6.27 lacs,( Previous year Rs.8.24 lacs)

J Related party disclosure as require by Accounting Standard-18 (AS-18) "Related Parties Disclosure" issued by the Institute of Chartered Accountants Of India are given below :

i) LIST OF RETLATED PARTIES :

A. Associate Companies :

-Kashipur Holdings Ltd

-India Glycols Ltd

-Lund & Blockley Pvt Ltd

B. Key Management Personnel & their relatives

-Mr R.P.Goyal -Director (Finance & Commercial)

-Mrs Neeta Goyal (Wife of shri R.P.Goyal)

C. Enterprise over which key managerial personnel or their relatives have control: -N2N Impex Pvt. Ltd.

K. Previous periods figures have been regrouped / rearranged whererver considered necessary to confirm to this years classification.