Notes to Accounts of Shaily Engineering Plastics Ltd.

Mar 31, 2023

Provisions, Contingent Liabilities and Contingent Assets

Provisions are recognised when the Company has a present
obligation (legal or constructive) as a result of a past event,
it is probable that an outflow of resources embodying
economic benefits will be required to settle the obligation
and a reliable estimate can be made of the amount of
the obligation. When the Company expects some or all
of a provision to be reimbursed, for example, under an
insurance contract, the reimbursement is recognised as a
separate asset, but only when the reimbursement is virtually
certain. The expense relating to a provision is presented in
the Statement of Profit and Loss net of any reimbursements.

If the effect of the time value of money is material, provisions
are discounted using a current pre-tax rate that reflects,
when appropriate, the risks specific to the liability. When
discounting is used, the increase in the provision due to the
passage of time is recognised as a finance cost.

Contingent liability is disclosed in the case of:

a) A present obligation arising from the past events, when
it is not probable that an outflow of resources will be
required to settle the obligation;

b) A present obligation arising from the past events, when
no reliable estimate is possible;

c) A possible obligation arising from the past events,
unless the probability of outflow of resources is remote.

Commitments include the amount of purchase order (net of
advances) issued to parties for completion of assets.

Provisions, contingent liabilities, contingent assets and
commitments are reviewed at each balance sheet date.

Final dividend on shares is recorded as a liability on the
date of approval by the shareholders and interim dividends
are recorded as a liability on the date of declaration by the
Company''s Board of Directors.

p) Employees Benefits

(i) Short-term obligations

Liabilities for wages and salaries and non-monetary
benefits that are expected to be settled wholly within
12 months after the end of the period in which the
employees render the related service are recognised
in respect of employees'' services up to the end of the
reporting period and are measured at the amounts

expected to be paid when the liabilities are settled. The
liabilities are presented as current employee benefit
obligations in the balance sheet.

(ii) Long-term obligations

Compensated absences which are not expected to
occur within twelve months after the end of the period
in which the employee renders the related service
and measured at the present value of expected future
payments to be made in respect of services provided
by employees up to the end of the reporting period
using the projected unit credit method. The benefits
are discounted using the market yields on government
bonds at the end of the reporting period that have
terms approximating to the terms of the related
obligation. Remeasurements as a result of experience
adjustments and changes in actuarial assumptions are
recognised in profit or loss.

The obligations are presented as current liabilities
in the balance sheet if the entity does not have an
unconditional right to defer settlement for at least
twelve months after the reporting period, regardless of
when the actual settlement is expected to occur.

(iii) Post-employment obligations

The Company operates the following post-employment
schemes:

¦ defined benefit plans such as gratuity, and

¦ defined contribution plans such as provident fund
and superannuation fund

a) Defined benefit plans

The employees'' gratuity fund scheme managed by
HDFC Standard Life Insurance is a defined benefit
plan. The present value of obligation is determined
based on actuarial valuation 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.

Remeasurements of net defined benefit liability
which comprise actuarial gains and losses, the
return on plan assets (excluding interest) and the
effect of asset ceiling (if any excluding interest) are
recognized in OCI. The Company determines the
net interest expense (income) on the net defined
benefit liability (asset) for the period by applying
the discount rate used to measure the defined
benefit obligation at the beginning of the annual
period to the then net defined benefit liability
(asset), taking into account any changes in the net

defined benefit liability (asset) during the period as
a result of the contributions and benefit payments.
Net interest expense and other expenses related
to defined benefit plans are recognized in profit
or loss.

When the benefits of a plan are changed or
when a plan is curtailed, the resulting change in
benefit that relates to past service (‘past service
cost or past service gain'') or the gain or loss on
curtailment is recognized immediately in profit or
loss. The Company recognizes gains and losses
on settlement of a defined benefit plan when the
settlement occurs.

b) Defined contribution plans

The Company pays provident fund contributions
to publicly administered provident funds and
employee state insurance corporation (ESIC) as
per local regulations. The Company has no further
payment obligations once the contributions have
been paid. The contributions are accounted for as

defined contribution plans and the contributions
are recognised as employee benefit expense when
they are due. Prepaid contributions are recognised
as an asset to the extent that a cash refund or a
reduction in the future payments is available.

Superannuation Fund Contribution towards
superannuation fund for qualifying employees as
per the Company''s policy is made to Life Insurance
Corporation of India where the Company has no
further obligations. Such benefits are classified as
Defined Contribution Schemes as the Company
does not carry any further obligations, apart from
contribution made on monthly basis.

q) Dividend

The Company recognises a liability to pay dividend to
equity holders when the distribution is authorised, and the
distribution is no longer at the discretion of the Company. As
per the corporate laws in India, a distribution is authorised
when it is approved by the shareholders. A corresponding
amount is recognised directly in equity.

r) Earnings per share

Basic earning per share is calculated by dividing the profit or
loss attributable to owners of the Company by the weighted
average number of equity shares outstanding during the
financial year. The weighted average number of equity
shares outstanding during the period and for all periods
presented is adjusted for events, such as bonus shares,
other than the conversion of potential equity shares that

have changed the number of equity shares outstanding,
without a corresponding change in resources.

Diluted earnings per share, adjusts the figures used in
the determination of basic earnings per share to take into
account the after income tax effect of interest and other
financing costs associated with dilutive potential equity
shares, and the weighted average number of additional
equity shares that would have been outstanding assuming
the conversion of all dilutive potential equity shares.

s) Rounding of amounts

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

t) Impairment of non-financial assets

The carrying amounts of the Company''s non-financial assets
and deferred tax assets are reviewed at each reporting date
to determine whether there is any indication of impairment.
If any such indication exists, then the asset''s recoverable
amount is estimated. For impairment testing, assets that
do not generate independent cash inflows are grouped
together into cash-generating units (CGUs). Each CGU
represents the smallest group of assets that generates cash
inflows that are largely independent of the cash inflows of
other assets or CGUs. The recoverable amount of a CGU
(or an individual asset) is the higher of its value in use and
its fair value less costs to sell. Value in use is based on
the estimated future cash flows, discounted to their present
value using a pre-tax discount rate that reflects current
market assessments of the time value of money and the
risks specific to the CGU (or the asset).

An impairment loss is recognised if the carrying amount of
an asset or CGU exceeds its estimated recoverable amount.
Impairment losses are recognised in the standalone
statement of profit and loss.

Impairment loss recognised in respect of a CGU is allocated
first to reduce the carrying amount of any goodwill allocated
to the CGU, and then to reduce the carrying amounts of
the other assets of the CGU (or group of CGUs) on a pro
rata basis.

In respect of assets for which impairment loss has been
recognised in prior periods, the Company reviews at each
reporting date whether there is any indication that the loss
has decreased or no longer exists. An impairment loss is
reversed if there has been a change in the estimates used
to determine the recoverable amount. Such a reversal is
made only to the extent that the asset''s carrying amount
does not exceed the carrying amount that would have

been determined, net of depreciation or amortisation, if no
impairment loss had been recognised.

u) Derivative and Hedging Activities

The Company uses certain derivative financial instruments
to reduce business risks which arise from its exposure to
foreign exchange and interest rate fluctuations associated
with borrowings (cash flow hedges). When the Company
opts to undertake hedge accounting, the Company
documents, at the inception of the hedging transaction,
the economic relationship between hedging instruments
and hedged items including whether the hedging
instrument is expected to offset changes in cash flows or
fair values of hedged items. The Company documents its
risk management objective and strategy for undertaking
various hedge transactions at the inception of each hedge
relationship. Derivatives are initially recognised at fair value
on the date the derivative contract is entered into and are
subsequently remeasured to their fair value at the end of
each reporting period. The accounting for subsequent
changes in fair value depends on whether the derivative is
designated as a hedging instrument, and if so, the nature of
the item being hedged and the type of hedge relationship
designated.

Cash flow hedges that qualify for hedge accounting

The effective portion of changes in the fair value of
derivatives that are designated and qualify as cash flow
hedges, is recognized through OCI and as cash flow
hedging reserve within equity, limited to the cumulative
change in fair value of the hedged item on a present value
basis from the inception of the hedge. The gain or loss
relating to the ineffective portion is recognised immediately
in the Statement of Profit and Loss. Amounts accumulated
in equity are reclassified to the Statement of Profit and Loss
on settlement.

When the hedged forecast transaction results in the
recognition of a non-financial asset, the amounts
accumulated in equity with respect to gain or loss relating
to the effective portion of the spot component of forward
contracts, both the deferred hedging gains and losses and
the deferred aligned forward points are included within
the initial cost of the asset. The deferred amounts are
ultimately recognised in the Statement of Profit and Loss
as the hedged item affects profit or loss. When a hedging
instrument expires, is sold or terminated, or when a hedge
no longer meets the criteria for hedge accounting, then
hedge accounting is discontinued prospectively and any
cumulative deferred gain or loss and deferred costs of
hedging in equity at that time remains in equity until the
forecast transaction occurs. When the forecast transaction
is no longer expected to occur, the cumulative gain or loss

and deferred costs of hedging that were reported in equity
are immediately transferred to the Statement of Profit and
Loss.

Note 2 - II: Use of estimates and judgements

The preparation of standalone financial statements requires
the use of accounting estimates which, by definition, will
seldom equal the actual results. Management also needs to
exercise judgement in applying the Company''s accounting
policies.

The area involving critical estimates or judgements is:

• Employee benefit plans

The Company''s obligation on account of gratuity
and compensated absences is determined based on
actuarial valuations. An actuarial valuation involves
making various assumptions that may differ from
actual developments in the future. These include
the determination of the discount rate, future salary
increases and mortality rates. Due to the complexities
involved in the valuation and its long-term nature,
these liabilities are highly sensitive to changes in these
assumptions. All assumptions are reviewed at each
reporting date. The parameter most subject to change
is the discount rate. In determining the appropriate
discount rate, the management considers the interest
rates of government bonds in currencies consistent
with the currencies of the post-employment benefit
obligation. The mortality rate is based on publicly
available mortality tables. Those mortality tables tend
to change only at interval in response to demographic
changes. Future salary increases are based on
expected future inflation rates.

• Embedded lease arrangement

The Mould required with respect to the arrangement
with customer for customize manufacturing, is
identified as embedded lease arrangement, as per
Note 41, considering commitment by the customer
in agreement with the company. Over this period,
customer commits to purchase definite quantity of
product from the company at fixed price per unit,
failing which customer commits to pay to the company
for the unsold quantity of the product) at such fixed
rate per unit.

• Useful lives and residual value of property, plant
and equipment

The Company reviews the useful life and residual value
of property, plant and equipment at the end of each
reporting period. This reassessment may result in a
change in depreciation expense in future periods.

• Expected Credit Loss

In accordance with Ind AS 109, the Company follows
‘Expected Credit Loss'' (ECL) model, for evaluating
impairment of Financial Assets other than those
measured at Fair Value Through Profit and Loss
(FVTPL). The Company uses historical default rates
to determine impairment loss on the portfolio of trade
receivables. At every reporting date these historical
default rates are reviewed and changes in the forward¬
looking estimates are analysed.

• Income taxes

Significant judgements are involved in determining the
provision for income taxes, including amount expected
to be paid / recovered for uncertain tax positions.

New and revised Indian Accounting Standards in
issue but not yet effective*

Following are the amendments to existing standards
(as notified by Ministry of Corporate Affairs (MCA)
on 31^st March 2023) which are effective for annual
periods beginning after 1^st April 2023. The Company
intends to adopt these standards or amendments from
the effective date, as applicable and relevant. These
amendments are not expected to have a significant
impact on the Company''s standalone financial
statements. This assessment is based on currently
available information and may be subject to changes
arising from further reasonable and supportable
information being made available to the company
when it will adopt the respective standards.

*Amendments to Ind AS 12 Income Taxes—Deferred
Tax related to Assets and Liabilities arising from a
Single Transaction:*

Under the amendments, an entity does not apply
the initial recognition exemption for transactions that
give rise to equal taxable and deductible temporary
differences. Equal taxable and deductible temporary
differences may arise on initial recognition of an asset
and liability in a transaction that is not a business
combination and affects neither accounting nor taxable
profit. For example, this may arise upon recognition of a
lease liability and the corresponding right-of-use asset
applying Ind AS 116 Leases at the commencement
date of a lease. The amendments should be applied
to transactions that occur on or after the beginning
of the earliest comparative period presented. In
addition, at the beginning of the earliest comparative
period presented, a deferred tax asset (provided that
sufficient taxable profit is available) and a deferred tax

liability should also be recognized for all deductible and
taxable temporary differences associated with leases
and decommissioning obligations. The Company does
not expect the amendment to have a significant impact
in its financial statements.

*Amendments to Ind AS 1 Presentation of Financial
Statements - Disclosure of Accounting Policies:*

The amendments replace all instances of the
term ‘significant accounting policies'' with ‘material
accounting policy information''. Accounting policy
information is material if, when considered together
with other information included in an entity''s financial
statements, it can reasonably be expected to influence
decisions that the primary users of general-purpose
financial statements make on the basis of those
financial statements. The supporting paragraph in Ind
AS 1 are also amended to clarify that accounting policy
information that relates to immaterial transactions,
other events or conditions is immaterial and need
not be disclosed. Accounting policy information may
be material because of the nature of the related

transactions, other events or conditions, even if the
amounts are immaterial. However, not all accounting
policy information relating to material transactions,
other events or conditions is itself material. The
Company does not expect the amendment to have a
significant impact in its financial statements.

*Amendments to Ind AS 8 Accounting Policies,
Changes in Accounting Estimates and Errors—
Definition of Accounting Estimates:*

The amendments replace the definition of a change
in accounting estimates with a definition of accounting
estimates. Under the new definition, accounting
estimates are "monetary amounts in financial statements
that are subject to measurement uncertainty”. The
amendments clarify the distinction between changes
in accounting estimates and changes in accounting
policies and the correction of errors. Also, they clarify
how entities use measurement techniques and inputs
to develop accounting estimates. The Company does
not expect the amendment to have a significant impact
in its financial statements.

---

Mar 31, 2018

1 Corporate Information

Shaily Engineering Plastics Limited (“the Company”) is a public Company, limited by shares, incorporated and domiciled in India under the provisions of Companies Act, applicable in India, with its registered office in Savli, District Vadodara, Gujarat. Its equity shares are listed on the Bombay Stock Exchange (BSE) in India. The Company is engaged in the manufacture and sale of injection moulded precision plastic components and sub-assemblies. The Company’s manufacturing facilities are at Savli and Halol, Vadodara, Gujarat.

These financial statements were authorized for issue in accordance with a resolution of the board of directors on 14th May, 2018.

2.1 Critical estimates and judgements

The preparation of financial statements requires the use of accounting estimates which, by definition, will seldom equal the actual results. Management also needs to exercise judgement in applying the Company’s accounting policies.

The area involving critical estimates or judgements is:

i. Estimation of defined benefit obligation - Note 16

The cost of the defined benefit gratuity plan and other post-employment employee benefits and the present value of the gratuity obligation are determined using actuarial valuations. An actuarial valuation involves making various assumptions that may differ from actual developments in the future. These include the determination of the discount rate, future salary increases and mortality rates. Due to the complexities involved in the valuation and its long-term nature, a defined benefit obligation is highly sensitive to changes in these assumptions. All assumptions are reviewed at each reporting date.

The parameter most subject to change is the discount rate. In determining the appropriate discount rate for plans operated in India, the management considers the interest rates of government bonds in currencies consistent with the currencies of the post-employment benefit obligation.

The mortality rate is based on publicly available Indian Assured Lives Mortality (2006-08) Ultimate. Those mortality tables tend to change only at interval in response to demographic changes. Future salary increases and gratuity increases are based on expected future inflation rates for the respective countries.

ii. Estimation of useful life of Mould - Note 41

The useful life of the Mould, identified as Finance assets, as per Note 41, has been taken based on the period committed by the customer in agreement with the company. Over this period, customer commits to purchase definite quantity of product from the company at fixed price per unit, failing which customer commits to pay to the company for the unsold quantity of the producta) at such fixed rate per unit.

iii. Useful lives and residual value of property, plant and equipment

The Company reviews the useful life and residual value of property, plant and equipment at the end of each reporting period. This reassessment may result in change in depreciation expense in future periods.

iv. Allowance for expected credit losses

Note -29a describes the use of practical expedient by computing the expected credit loss allowance for trade receivables based on provision matrix. The expected credit allowance is based on the aging of the days receivables which are past due and the rates derived based on past history of defaults in the provision matrix.

v. Income taxes

Significant judgements are involved in determining the provision for income taxes, including amount expected to be paid / recovered for uncertain tax positions.

vi. Contingent liability judgement:

Note - 3 lists down certain litigation with tax authorities on account of disputes on tax position taken by the Company. Based on past experience and/or legal opinion, Company believes that the charges are not certain and and there exists no obligation as at balance-sheet date and hence have disclosed the same as contingent liabilities.

Terms and rights attached to equity shares

- The Company has only one class of equity shares having face value of Rs. 10 each.

Each holder of Equity share is entitled to one vote per share.

- In the event of liquidation of the Company, the holders of the equity shares will be entitled to receive remaining assets of the Company. The distribution will be in proportion to the number of equity shares held by the shareholders.

- The Board of Directors has recommended dividend of Rs. 7.50 per Equity share of Rs. 10/- each subject to the shareholders approval in the ensuing 38th Annual General Meeting.

Nature and purpose of other reserves

Securities premium reserve is used to record the premium on issue of shares. The reserve is utilised in accordance with the provisions of the Act.

Capital Reserve relates to the balance towards merger of Anmol Trading Company.

Security

Term loans from banks are secured by a pari passu charge over entire property, plant and equipment of the Company.Foreign Currency Loan is further secured by hypothecation of all current assets of the company, present & future. These are further secured by personal guarantee of some of the directors of the Company.

Security

Working capital loans from banks are secured by hypothecation of all current assets of the Company, present and future, such as inventories, receivables, loans and advances, etc. Working capital loans are further secured by second pari passu charge over entire property, plant and equipments of the Company. These are further secured by personal guarantees of some of the directors of the Company.

The carrying amounts of financial and non-financial assets pledged as security for current and non-current borrowings are disclosed in note 39.

Defined contribution plans

The Company makes Provident Fund and Superannuation Fund Contributions to defined contribution plans for qualifying employees. Contributions are made to provident fund in India for employees at the rate oRs. 12% of basic salary as per regulations. The contributions are made to registered provident fund administered by the government. The obligation of the Company is limited to the amount contributed and it has no further contractual nor any constructive obligation.

The Company recognised year ended 31st March 2018 Rs. 116.07 lakhs ( Year ended 31st March, 2017 Rs. 105.48 lakhs) for Provident Fund contributions and f25.91 lakhs (Year ended 31st March, 2017 Rs. 24.70 lakhs) for Superannuation Fund contributions in the Statement of Profit and Loss.

Defined benefit plans

Gratuity

The Company provides for gratuity for employees in India as per the Payment of Gratuity Act, 1972. Employees who are in continuous service for a period oRs. 5 years are eligible for gratuity. The Company operates a gratuity plan administered by LIC. Every employee is entitled to a benefit equivalent to fifteen days salary last drawn for each completed year of service in line with the Payment of Gratuity Act, 1972 or Company scheme whichever is beneficial. The same is payable at the time of separation from the Company or retirement, whichever is earlier. The benefits vest after five years of continuous service.

Compensated absences

Provision for compensated absences covers the liability for sick and earned leave. Compensated absences that are not expected to occur within twelve months after the end of the period in which the employee renders the related services are measured at the present value of expected future payments to be made in respect of such services provided by employees up to the end of the reporting period using the projected unit credit method. The benefits are discounted using the market yields at the end of the reporting period that have terms approximating to the terms of the related obligation. The obligations are presented as current liabilities in the balance sheet if the entity does not have an unconditional right to defer settlement for at least twelve months after the reporting period, regardless of when the actual settlement is expected to occur.

The above sensitivity analyses are based on a change in an assumption while holding all other assumptions constant. In practice, this is unlikely to occur, and changes in some of the assumptions may be correlated.

The methods and types of assumptions used in preparing the sensitivity analysis did not change compared to the prior period.

This information as required to be disclosed under the Micro, Small and Medium Enterprises Development Act, 2006 (MSMED) has been determined to the extent such parties have been identified on the basis of information available with the company and relied by the auditors.

The above information has been determined to the extent such parties could be identified on the basis of the information available with the Company regarding the status of suppliers under the MSME.

4 Leasing arrangements

A) The Company has entered into finance lease arrangements for certain vehicles, which provide the company an option to purchase the assets at the end of the lease period. There is monthly repayment for hire purchase loans.

B) The Company has entered into operating lease arrangements for certain facilities and office premises.

The leases are cancellable and are for a period oRs. 1 year and may be renewed for a further period oRs. 1 year based on mutual agreement of the parties. The amount charged to statement of Profit and Loss for the year is Rs. 12.60 Lakhs (previous year Rs. 8.40 Lakhs)

For all the financial assets and liabilities referred above that are measured at amortised cost, their carrying amounts are reasonable approximations of their fair values.

The fair value of financial instruments are classified into three categories i.e. Level 1, 2 or 3 depending on the inputs used in the valuation technique. The hierarchy gives the highest priority to quoted prices in active market for identical assets or liabilities (level 1 measurements) and lowest priority to unobservable inputs (level 3 measurements). There were no transfers between any levels during the year

Level 1: Level 1 hierarchy includes financial instruments measured using quoted prices. This includes mutual funds that have a quoted price. The fair value of all equity instruments which are traded in the stock exchanges is valued using the closing price as at the reporting period. The mutual funds are valued using closing NAV.

Level 2: The fair value of financial instruments that are not traded in an active market (for example over-the-counter derivatives) is determined using valuation techniques which maximise the use of observable market data and rely as little as possible on entity-specific estimates. If all significant inputs required to fair value an instrument are observable, the instrument is included in level 2.

Level 3: If one or more of the significant inputs is not based on observable market data, the instrument is included in level 3. This is the case for unlisted equity securities, preference shares and debentures which are included in level 3.

c Fair value technique

Valuation technique used to determine fair value

Specific valuation techniques used to value financial instruments include:

- the fair value of the financial instruments is determined using discounted cash flow analysis / Earnings / EBITDA multiple method.

All of the resulting fair value estimates are included in level 1 and 2 except for unlisted equity securities, where the fair values have been determined based on present values and the discount rates used were adjusted for counterparty or own credit risk.

d Valuation processes

The finance department of the company includes a team that performs the valuation of financial assets and liabilities required for financial reporting purposes, including level 3 fair values. This team reports directly to Chief Financial Officer.

The main level 3 inputs used by the Company are derived and evaluated as follows:

- Discount rates are determined using a capital asset pricing model to calculate a pre-tax rate that reflects current market assessments of the time value of money and the risk specific to the asset.

- Risk adjustments specific to the counterparties (including assumptions about credit default rates) are derived from credit risk grading determined by the Company’s internal credit risk management group.

- For unlisted equity securities, their fair values are estimated based on the book values of the companies.

Significant changes in level 3 fair values are analysed at the end of each reporting period and presented before Audit Committee.

e Valuation inputs and relationships to fair value

100 basis points change in the unobservable input for unquoted equity instruments does not have a significant impact to its value.

5 Financial risk management

The Company’s business activities expose it to a variety of financial risks, namely liquidity risk, market risks and credit risk. The Company’s senior management has overall responsibility for the establishment and oversight of the Company’s risk management framework. The Company has constituted a Risk Management framework, through which management develops and monitors the Company’s risk management policies. The key risks and mitigating actions are also placed before the Board of directors of the Company. The Company’s risk management policies are established to identify and analyse the risks faced by the Company, to set appropriate risk limits and controls and to monitor risks and adherence to limits. Risk management policies and systems are reviewed regularly to reflect changes in market conditions and the Company’s activities.

The Risk Management Framework of the Company is enforced by the finance team and experts of business division that provides assurance that the Company’s financial risk activities are governed by appropriate policies and procedures and that financial risks are identified, measured and managed in accordance with the Company’s policies and risk objectives. The activities are designed to:

- protect the Company’s financial results and position from financial risks;

- maintain market risks within acceptable parameters, while optimising returns; and

The finance department is responsible to maximise the return on companies internally generated funds.

a Credit risk

Credit risk arises from cash and cash equivalents and deposits with banks and financial institutions, as well as credit exposures to wholesale customers including outstanding receivables.

b Management of credit risks

Credit risk is the risk of financial loss to the Company if a customer or counter-party fails to meet its contractual obligations. Trade receivables

Concentrations of credit risk with respect to trade receivables are limited. This is due to the Company’s policy of strict credit worthiness tests it performs for all its sales. Company deals with limited number of customers with highest credit ratings. Company acts as institutional supplier to its customers without any channel distribution model. Most of the company products are plastic molded components, specially created as per the designs of its customer and are either semi finished goods or critical to business operations of its customers, making it business prudent for customers for not to dispute or delay payment of any receivable to the Company. All trade receivables are regularly reviewed and assessed for default on an ongoing basis.

c Management of liquidity risk:

Liquidity risk is the risk that the Company will face in meeting its obligations associated with its financial liabilities. The Company’s approach to managing liquidity is to ensure that it will have sufficient funds to meet its liabilities when due without incurring unacceptable losses. In doing this, management considers both normal and stressed conditions. A material and sustained shortfall in our cash flow could undermine the Company’s credit rating and impair investor confidence.

d Management of market risks

Market risk is the risk of loss of future earnings, fair values or future cash flows that may result from a change in the value of a financial asset. The value of a financial asset may change as a result of changes in the interest rates, foreign currency exchange rates and other market changes that affect market risk sensitive instruments. Market risk is attributable to all market risk sensitive financial instruments including receivables, payables and borrowings denominated in foreign currency. The objective of the Management of the Company for market risk is to maintain this risk within acceptable parameters, while optimising returns. The Company exposure to, and the Management of, these risks is explained below:

e Foreign currency risk

The Company has international operations and is exposed to foreign exchange risk arising from foreign currency transactions. Foreign exchange risk arises from future commercial transactions and recognised Financial assets and liabilities denominated in a currency that is not the functional currency ‘(INR) of the Company. The management does not undertake any hedging activities or otherwise to offset or mitigate the foreign currency and interest rate risk that it is exposed to. The Company undertakes significant of its foreign currency transaction in United States Dollar (‘USD’). To the extent of lower of exports and imports that the Company undertakes in USD, the Company has a natural hedge against the exposure to foreign currency risks.

The outstanding EURO, MYR, GBP, JPY denominated balance being insignificant has not been considered for the purpose of sensitivity disclosures.

f Interest rate risk

Interest rate risk arises on account of variable interest rate borrowings held by the company. The uncertainties about the future market interest rate of these borrowings exposes the company to the interest rate risk.

Currently, company does not hold any variable interest rate borrowing and therefore, the interest rate risk to which the company is exposed is perceived to be low.

g Risk Management

The Company aims to manage its capital efficiently so as to safeguard its ability to continue as a going concern and to optimise returns to its shareholders. The capital structure of the Company is based on management’s judgement of the appropriate balance of key elements in order to meet its strategic and day-to-day needs. The Company considers the amount of capital in proportion to risk and manages the capital structure in light of changes in economic conditions and the risk characteristics of the underlying assets. In order to maintain or adjust the capital structure, the Company may borrow from external parties such as banks or financial institutions. The Company’s policy is to maintain a stable and strong capital structure with a focus on total equity so as to maintain shareholder, creditor and stakeholder confidence to sustain future development and growth of its business. The Company will take appropriate steps in order to maintain, or if necessary adjust, its capital structure.

6 Segment revenue

Description

The company’s chief operating marision maker is the CFO who examines the company’s performance both from a product and geographic perspective and has identified single reportable segment of its business. The company is engaged in the business of manufacturing of injection molded plastic components which falls within a single business segment.

The Company operates as a single segment. The Company is engaged in the business of manufacturing of injection molded plastics components, moulds etc.,The segment revenue is measured in the same way as in the statement of profit or loss.

The company has ongoing litigations related to central excise and service tax. The company has not disclosed the same as contingent liability considering the remote possibility of outflow of resources embodying economic benefits based on judgements received in favour of the company in past years.

7 Events occurring after the reporting period

The Company assessed the event occurring after the reporting period through 14th May, 2018, the date the financial statements were available for issuance and determined that there were no additional material subsequent event requiring disclosure.

8 Offsetting financial assets and liabilities

The below note presents the recognised financial instruments that are offset or subject to enforceable master netting arrangements and other similar arrangements and other similar agreements, but not offset as at 31st March, 2018; 31st March, 2017; 1st April, 2016

Collateral against borrowings

The company has hypothecated / mortgaged financial instruments as collateral against a number of its borrowings. Refer note 38 (assets pledged) for further information on financial and non-financial collateral hypoticated.

9 Note on Finance Leases

The Company has entered into Purchase Agreements with its customers for various Moulds. The agreements with customers for these assets provide for take or pay arrangement as per which customers are committed to purchase committed quantity of the component from the company over definite period of time failing which customers are obliged to reimburse the company for the shortage in minimum committed quantity. This arrangement analysis pursuant to Ind AS 17 “Leases” identified an embedded finance lease and accordingly, the said arrangement has been accounted as per Ind AS 17

10 First-time adoption of Ind AS A: Transition to Ind AS

The accounting policies set out in note 1 have been applied in preparing the financial statements for the year ended 31 March 2018, the comparative information presented in these financial statements for the year ended 31st March, 2017 and in the preparation of an opening Ind AS balance sheet at 1st April, 2016 (the Company’s date of transition). In preparing its opening Ind AS balance sheet, the Company has adjusted the amounts reported previously in financial statements prepared in accordance with the accounting standards notified under Companies (Accounting Standards) Rules, 2006 (as amended) and other relevant provisions of the Act (previous GAAP or Indian GAAP or IGAAP). An explanation of how the transition from previous GAAP to Ind AS has affected the Company’s financial position, financial performance and cash flows is set out in the following tables and notes.

A.l Exemptions and exceptions availed

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

Ind AS Optional Exemptions A.1.1 Deemed Cost

Ind AS 101 permits a first-time adopter to elect to continue with the carrying value for all of its property, plant and equipment (including capital work-in-progress) as recognised in the financial statements as at the date of transition to Ind AS, measured as per the previous GAAP and use that as its deemed cost as at the date of transition after making necessary adjustments for de-commissioning liabilities, capital grant if applicable.

This exemption can also be used for intangible assets covered by Ind AS 38 Intangible Assets.

Accordingly, the Company has elected to measure all of its property, plant and equipment and intangible assets at their previous GAAP carrying value.

A.2 Ind AS mandatory exceptions

The Company has applied the following exceptions from full retrospective application of Ind AS as mandatorily required under Ind AS 101:

A.2.1 Estimates

An entity’s 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 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 Ind AS at the date of transition as these were not required under Previous GAAP.

1. Investments in Equity Instruments carried at FVTPL or FVOCI.

2. Impairment of Financial Assets based on expected credit loss model.

A.2.2. 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.

B: Reconciliations between previous GAAP and Ind AS

Ind AS 101 requires a first time adopter to reconcile equity, total comprehensive income and cash flows for prior periods. The following tables represent the reconciliations from previous GAAP to Ind AS. The presentation requirements under previous GAAP differs from and hence the previous GAAP information has been restated for ease of reconciliation with Ind AS. The restated previous GAAP information is derived based on the audited financial statements of the company for the year ended 31st March, 2017 and 1st April, 2016.

There is insignificant change in the net cash flow from operating, investing or financing activities due to Ind AS adoption. Further, there is no change in the cash and cash equivalents for the purposes of statement of cash flows under previous GAAP and under Ind AS.

C: Notes to first-time adoption:

C.l. Remeasurements of post-employment benefit obligations

Under Ind AS, remeasurements i.e. actuarial gains and losses and the 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.

C.2. Excise duty and Goods and Service Tax

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 expense.

Consequent to introduction of Goods and Service tax (GST) with effect from July 01, 2017, Central Excise, Service Tax, Value Added Tax (VAT) etc. have been subsumed into GST. In accordance with Indian Accounting Standard and Schedule III of the Companies Act, 2013, GST is not included in Revenue from operations. In view of the aforesaid restructuring of indirect taxes, Revenue from operations and Excise duty for the year ended March 31, 2018 are not comparable with the previous year. Following additional information is being provided to facilitate such comparison:

C.3. Adjustment on account of provision for expected credit loss

As per Ind AS 109, the Company is required to apply expected credit loss model for recognising the allowance for doubtful debts. As a result, the allowance for doubtful debts has been created.

C.4. Adjustment of borrowings at ammortised cost using effective interest rate method

Ind AS 109 requires transaction costs incurred towards origination of borrowings to be deducted from the carrying amount of borrowings on initial recognition. These costs are recognised in the profit or loss over the tenure of the borrowing as part of the interest expense by applying the effective interest rate method. Under previous GAAP, these transaction costs were charged to profit or loss as and when incurred.

C.5. Proposed dividend

Under previous GAAP, dividends on equity shares recommended by the Board of Directors after the end of the reporting period but before the financial statement were approved for issue were recognised in the financial statement as a liability. Under Ind AS, such dividends are recognised when declared by the members in the general meeting. The result of this change is increase in total equity as at 31st March, 2016 of Rs. 400 lakhs and has no impact on the on the financial statement for the year ended 31st March, 2017.

C.6. Investments

Under previous GAAP, long term investments were measured at cost less diminution in value which is other than temporary. Under Ind AS these financial assets which are in the nature of Equity instruments have been classified as FVOCI and assets other than Equity instruments have been classified as FVTPL. On the date of transition to Ind AS, these financial assets have been measured at fair value and there is no significant impact on the carrying value of asset on account of fair valuation.

C.7. Other comprehensive income

The concept of other comprehensive income did not exist under previous GAAP. Under Ind AS, all items of income and expense recognised in a period should be included in profit or loss for the period, unless a standard requires or permits otherwise. Items of income and expense that are not recognised in profit or loss but are shown in the statement of profit and loss as ‘other comprehensive income’ includes remeasurements of defined benefit plans and related tax impact.

11 Comparative Figures

The previous years’ figures have been regrouped / re-arranged, where necessary, to conform to the current year’s disclosures/presentations

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Mar 31, 2017

Note 1.: Disclosures under Accounting Standards Note Particulars 28.1 Employee benefit plans

2 a Defined contribution plans

The Company makes Provident Fund and Superannuation Fund contributions to defined contribution plans for qualifying employees. Under the Schemes, the Company is required to contribute a specified percentage of the payroll costs to fund the benefits. The Company recognized ''10,548,170/- (Year ended 31 March, 2016 '' 8,658,872/-) for Provident Fund contributions and '' 2,289,818/- (Year ended 31 March, 2016 '' 2,470,055/-) for Superannuation Fund contributions in the Statement of Profit and Loss. The contributions payable to these plans by the Company are at rates specified in the rules of the schemes.

3. b Defined benefit plans

The Company offers the following employee benefit schemes to its employees:

i. Gratuity

ii. Leave Encashment

The following table sets out the funded status of the gratuity and leave encashment and the amount recognized in the financial statements:

1 Discount rate is determined by reference to market yields at the Balance Sheet date on Govt. Bonds, where the currency and terms of the Govt. Bonds are consistent with the currency and estimated terms for the benefit obligation.

2 The estimate of future salary increases take into account inflation, seniority, promotion and other relevant factors such as supply and demand in the employment market.

3 100% of Plan Assets are invested in group gratuity scheme offered by HDFC Standard Life Insurance Company Limited - debt security.

Note Particulars

4. Segment Reporting:

Business Segment: The Company is engaged in the business of manufacturing of injection molded plastics components, moulds etc., which as per the Accounting Standard (AS 17) ''Segment Reporting'' is considered as the only reportable segment

5. Related party transactions

6. a Details of related parties:

Description of relationship Names of related parties

Key Management Personnel

Executive Chairman Mr. Mahendra B. Sanghvi

Managing Director Mr. Amit M. Sanghvi

Executive Director Mr. Laxman B. Sanghvi

Whole Time Director Mrs. Tilottama M. Sanghvi

Chief Financial Officer Mr Sanjay Shah Other Related Parties

Entities in which KMP / relatives of KMP have significant influence Panax Appliances Pvt. Ltd.

Entities in which KMP / relatives of KMP have significant influence Shaily-IDC India Pvt. Ltd.

Entities in which KMP / relatives of KMP have significant influence Shaily Medical Plastics Pvt.Ltd.

Relative of key management personnel Mrs.Kinjal S Bhavsar

Relative of key management personnel Mrs. Kalpana L Sanghvi

Firm owned by relative of key management personnel Jariwala Shah Kanji Raichand & Co

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Mar 31, 2016

b. Terms & Rights attached to equity shares;

The Company has only one class of equity shares having face value of '' 10 each. Each holder of Equity share is entitled to one vote per share.

In the event of liquidation of the Company, the holders of the equity shares will be entitled to receive remaining assets of the Company. The distribution will be in proportion to the number of equity shares held by the shareholders.

Note: Figures in brackets relate to the previous year.

1. Details on derivatives instruments and unheeded foreign currency exposures

I. The Company has taken Interest Rate Swaps to hedge against fluctuation in interest rate changes. No. of contracts 2. ( As at 31st March, 2015 - 2).

b) Currency swaps (other than forward exchange contracts state above) to hedge against fluctuations in changes in exchange rate. No. of Contracts : Nil

NOTE 2. DISCLOSURES UNDER ACCOUNTING STANDARDS Note Particulars

3. Employee benefit plans

4. a Defined contribution plans

The Company makes Provident Fund and Superannuation Fund contributions to defined contribution plans for qualifying employees. Under the Schemes, the Company is required to contribute a specified percentage of the payroll costs to fund the benefits. The Company recognized '' 8,658,872/- (Year ended 31 March, 2015 '' 7,350,914/-) for Provident Fund contributions and '' 2,470,055/- (Year ended 31 March, 2015 '' 2,055,151/-) for Superannuation Fund contributions in the Statement of Profit and Loss. The contributions payable to these plans by the Company are at rates specified in the rules of the schemes.

5. b Defined benefit plans

The Company offers the following employee benefit schemes to its employees: i. Gratuity

The following table sets out the funded status of the gratuity and leave encashment and the amount recognized in the financial statements:

6 Discount rate is determined by reference to market yields at the Balance Sheet date on Govt. Bonds, where the currency and terms of the Govt. Bonds are consistent with the currency and estimated terms for the benefit obligation.

7 The estimate of future salary increases take into account inflation, seniority, promotion and other relevant factors such as supply and demand in the employment market.

8 100% of Plan Assets are invested in group gratuity scheme offered by HDFC Standard Life Insurance Company Limited.

Note Particulars

9. Segment Reporting:

Business Segment: The Company is engaged in the business of manufacturing of injection molded plastics components, moulds etc., which as per the Accounting Standard (AS 17) ''Segment Reporting'' is considered as the only reportable segment

10. Related party transactions

11. a Details of related parties:

Description of relationship Names of related parties Key Management Personnel

Executive Chairman Mr. Mahendra B. Sanghvi

Managing Director Mr. Amit M. Sanghvi

Executive Director Mr. Laxman B. Sanghvi

Whole Time Director Mrs. Tilottama M. Sanghvi

Chief Financial Officer Mr. Sanjay Shah Other Related Parties

Entities in which KMP / relatives of KMP have significant influence Panax Appliances Pvt. Ltd.

Entities in which KMP / relatives of KMP have significant influence Shaily-IDC India Pvt. Ltd.

Entities in which KMP / relatives of KMP have significant influence Shaily Medical Plastics Pvt.Ltd.

Relative of key management personnel Mrs.Kinjal S Bhavsar

Relative of key management personnel Mrs. Kalpana L Sanghvi

Relative of key management personnel Ms Purnima Shah

Relative of key management personnel Mr Bharat Sanghvi

Relative of key management personnel Mrs. Rashmi Sanghvi

Firm owned by relative of key management personnel Jariwala Shah Kanji Raichand & Co

Note: Related parties have been identified by the Management.

12. The Company had issued equity shares amounting to '' 2510.00 Lacs for purposes of General Corporate Needs. As at 31 March, 2016, no amount is pending to be utilized (Amount unutilized as at 31 March, 2015 '' 2510.00 Lacs). The same has been used for general corporate needs in the FY 2015-16.

13. The previous year figures have been regrouped / re-classified to conform to the current year''s classification.

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Mar 31, 2014

Note 1 : Corporate information

Shaily Engineering Plastics Limited (the Company) is a Public Limited Company domiciled in India and incorporated under the provisions of the Companies Act, 1956. The Company is engaged in the manufacture and sale of injection moulded precision plastic components and sub-assemblies. The Company''s manufacturing facilities are at Savli and Halol, Baroda, Gujarat, India.

Note 2 : Additional information to the financial statements

Particulars As at 31 As at 31 March, 2014 March, 2013

28.1 Contingent liabilities and commitments (to the extent not provided for)

(i) Contingent liabilities

(a) Guarantees 1,000,000 1,325,000

(b) Pending export obligation against advance licenses Nil Nil

(obligation to be completed by March 2014)

(ii) Commitments

Estimated amount of contracts remaining to be executed on capital account and not provided for

-Tangible assets 110,364,740 35,110,101

2.1 Disclosure as per Clause 32 of the Listing Agreements with the Stock Exchanges

Loans and advances in the nature of loans given to subsidiaries, associates and others and investment in shares of the Company by such parties:

2.2 Details on derivatives instruments and unhedged foreign currency exposures

I. The following derivative positions are open as at 31 March, 2014. These transactions have been undertaken to act as economic hedges for the Company''s exposures to various risks in foreign exchange markets and be designated as hedging instruments.

(a) Forward exchange contracts and options [being derivative instruments], which are not intended for trading or speculative purposes but for hedge purposes to establish the amount of reporting currency required or available at the settlement date of certificate.

Outstanding option contracts entered into by the Company as on 31 March, 2014

2.3 Employee benefit plans_

2.3a Defined contribution plans

The Company makes Provident Fund and Superannuation Fund contributions to defined contribution plans for qualifying employees. Under the Schemes, the Company is required to contribute a specified percentage of the payroll costs to fund the benefits. The Company recognised Rs 6,700,571/- (Year ended 31 March, 2013 Rs. 5,617,431/-) for Provident Fund contributions and Rs. 1,770,585/- (Year ended 31 March, 2013 Rs. 1,415,664/-) for Superannuation Fund contributions in the Statement of Profit and Loss. The contributions payable to these plans by the Company are at rates specified in the rules of the schemes.

2.4b Defined benefit plans

The Company offers the following employee benefit schemes to its employees:

i. Gratuity

ii. Post-employment medical benefits

iii. Other defined benefit plans (specify nature)

The following table sets out the funded status of the defined benefit schemes and the amount recognised in the financial statements:

1 Discount rate is determined by reference to market yields at the Balance Sheet date on Govt. Bonds, where the currency and terms of the Govt. Bonds are consistent with the currency and estimated terms for the benefit obligation.

2 The estimate of future salary increases take into account inflation, seniority, promotion and other relevant factors such as supply and demand in the employment market.

3 100% of Plan Assets are invested in group gratuity scheme offered by HDFC Standard Life Insurance

2.5 Segment Reporting:

Business Segment: The Company is engaged in the business of manufacturing of injection molded plastics components, moulds etc, which as per the Accounting Standard (AS 17) ''Segment Reporting'' is considered the only reportable segment.

3 The previous year figures have been regrouped / re-classified to conform to the current year''s classification

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Mar 31, 2013

Note 1 : Corporate information

Shaily Engineering Plastics Limited (the Company) is a Public Limited Company domiciled in India and incorporated under the provisions of the Companies Act, 1956. The Company is engaged in the manufacture and sale of injection moulded precision plastic components and sub-assemblies. The Company''s manufacturing facilities are at Savli and Halol, Baroda, Gujarat, India.

2.1 Details on derivatives instruments and unhedged foreign currency exposures

I. The following derivative positions are open as at 31 March, 2013. These transactions have been undertaken to act as economic hedges for the Company''s exposures to various risks in foreign exchange markets and be designated as hedging instruments.

(a) Forward exchange contracts and options [being derivative instruments], which are not intended for trading or speculative purposes but for hedge purposes to establish the amount of reporting currency required or available at the settlement date of certificate.

(ii) Outstanding option contracts entered into by the Company as on 31 March, 2013

3.1 Employee benefit plans 29.1a Defined contribution plans

The Company makes Provident Fund and Superannuation Fund contributions to defined contribution plans for qualifying employees. Under the Schemes, the Company is required to contribute a specified percentage of the payroll costs to fund the benefits. The Company recognised Rs. 5,617,431 /- (Year ended 31 March, 2012 Rs. 4,997,378/-) for Provident Fund contributions and Rs. 1,415,664 /- (Year ended 31 March, 2012 Rs. 1,263,879/-) for Superannuation Fund contributions in the Statement of Profit and Loss. The contributions payable to these plans by the Company are at rates specified in the rules of the schemes.

3.1b Defined benefit plans

The Company offers the following employee benefit schemes to its employees:

i. Gratuity

ii. Post-employment medical benefits

iii. Other defined benefit plans (specify nature)

The following table sets out the funded status of the defined benefit schemes and the amount recognised in the financial statements:

1 Discount rate is determined by reference to market yields at the Balance Sheet date on Govt. Bonds, where the currency and terms of the Govt. Bonds are consistent with the currency and estimated terms for the benefit obligation.

2 The estimate of future salary increases take into account inflation, seniority, promotion and other relevant factors such as supply and demand in the employment market.

3 100% of Plan Assets are invested in group gratuity scheme offered by HDFC Standard Life Insurance Company Limited.

3.2 Segment Reporting:

Business Segment: The Company is engaged in the business of manufacturing of injection molded plastics components, moulds etc, which as per the Accounting Standard (AS 17) ‘Segment Reporting'' is considered the only reportable segment.

3.3 Related party transactions

4 The previous year figures have been accordingly regrouped /re-classified to conform to the current year''s classification.

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Mar 31, 2012

1 Corporate information

Shaily Engineering Plastics Limited (the Company) is a Public Limited Company domiciled in India and incorporated under the provisions of the Companies Act, 1956. The Company is engaged in the manufacture and sale of injection moulded precision plastic components and sub-assemblies. The Company's manufacturing facilities are at Savli and Halol, Baroda, Gujarat, India.

a. Terms & Rights attached to equity shares;

The Company has only one class of equity shares having face value of ' 10 each. Each holder of Equity share is entitled to one vote per share.

In the event of Liquidation of the company, the holders of the equity shares will be entitled to receive remaining assets of the company, after distribution of Preferential amount. The distribution will be in proportion to the Number of equity shares held by Shareholders.

Note: Dues to Micro and Small Enterprises have been determined to the extent such parties have been identified on the basis of information collected by the management. This has been relied upon by the auditors.

Note Particulars

As at 31 March, 2012 As at 31 March, 2011

2.1 Contingent liabilities and commi tments (to the extent not provided for)

(i) Contingent liabilities

(a) Guarantees 14,725,000 13,300,000

(b) Pending export obligation against advance licenses (obligation to be completed by March 2,078,056 15,127,125 2013)

(ii) Commitments

(a) Estimated amount of contracts remaining to be executed on capital account and not provided for

Tangible assets 33,105,000 26,000

2.2 Details on derivatives instruments and unheeded foreign currency exposures

I. The following derivative positions are open as at 31 March, 2012. These transactions have been undertaken to act as economic hedges for the Company's exposures to various risks in foreign exchange markets and be designated as hedging instruments.

(a) Forward exchange contracts and options [being derivative instruments], which are not intended for trading or speculative purposes but for hedge purposes to establish the amount of reporting currency required or available at the settlement date of certain payables and receivables.

3.1 Employee benefit plans_

3.1 a Defined contribution plans

The Company makes Provident Fund and Superannuation Fund contributions to defined contribution plans for qualifying employees. Under the Schemes, the Company is required to contribute a specified percentage of the payroll costs to fund the benefits. The Company recognized? 4,997,378/- (Year ended 31 March, 2011 ' 4,759,285/-) for Provident Fund contributions and ' 1,263,879/- (Year ended 31 March, 2011 ' 587,134/-) for Superannuation Fund contributions in the Statement of Profit and Loss. The contributions payable to these plans by the Company are at rates specified in the rules of the schemes.

3.1 b Defined benefit plans

The Company offers the following employee benefit schemes to its employees

i. Gratuity

ii. Post-employment medical benefits

iii. Other defined benefit plans (specify nature)

The following table sets out the funded status of the defined benefit schemes and the amount recognised in the financial statements:

3.2 Segment Reporting:

Business Segment: The Company is engaged in the business of manufacturing of injection molded plastics components, moulds 2etc, which as per the Accounting Standard (AS 17) 'Segment Reporting' is considered the only reportable segment.

4 The Company prepares and presents its financial statements as per Schedule VI to the Companies Act, 1956, as applicable to it from time to time. In view of revision to the Schedule VI as per a notification issued during the year by the Central Government, the financial statements for the financial year ended 31st March, 2012 have been prepared as per the requirements of the Revised Schedule VI to the Companies Act, 1956. The previous year figures have been accordingly regrouped / re-classified to conform to the current year's classification.

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Mar 31, 2011

1. Contingent Liabilities:

- Outstanding amount of Bank Guarantees Rs.1,33,00,000(Previous year Rs. 43,50,000)

- The Capital commitment (Net of Advances) in respect of order placed for new fixed assets is Rs.12,94.590 (Previous year Rs.26,246)

- The Company has obtained advance licenses for the import of raw materials, the export obligation pending are Rs.1,51,27,125(Previous year Rs. 10,04,163). The Obligation is to be Completed by March 2013.

- Arrears of dividend on Participatory Cumulative Convertible Preference Shares- Rs.8,810,888 (Previous year Rs. 8,810,888)

2. Retirement Benefits:

Defined Contribution Plans

The company has recognised, in the profit and loss account for the year ended 31st March, 2011, following amounts as expenses under defined contribution plan under the head Contribution to Provident Fund & Other Funds in schedule 17 - Remuneration and Benefits to Employees.

Notes

1 Discount rate is determined by reference to market yields at the Balance Sheet date on Govt. Bonds, where the currency and terms of the Govt. Bonds are consistent with the currency and estimated terms for the benefit obligation.

2 The estimate of future salary increases take into account inflation, seniority, promotion and other relevant factors such as supply and demand in the employment market.

3 100% of Plan Assets are invested in group gratuity scheme offered by HDFC Standard Life Insurance Company Limited.

3. Segment Reporting:

Business Segment: The Company is engaged in the business of manufacturing of injection molded plastics components, moulds 2etc, which as per the Accounting Standard (AS 17) Segment Reporting is considered the only reportable segment.

4. Related Party Disclosure:

Related party Disclosures as required by AS-18," Related Party Disclosures", are given below:

a. Key Management Personnel

Mr. Mahendra B. Sanghvi Managing Director

Mr. Laxman B. Sanghvi Executive Director

Mrs.Tilottama M Sanghvi Whole-time Director

b. Relatives of key management personnel and Enterprises over which key management personnel and their relatives are able to exercise significant influence are as follows:

Panax Appliances Pvt. Ltd. Significant influence

Shaily-!DC India Pvt. Ltd. Significant influence

Sunido Textiles Pvt. Ltd. Significant influence

Stallion Textiles Pvt. Ltd. Significant influence

IQMS ERP (India) Pvt Ltd Significant influence

Innovative Polyplast Pvt. Ltd. Company in which relative of key management personnel is Director

Mr. Jayesh Shah Relative of key management personnel

Ms. Purnima Shah Relative of key management personnel

Mrs. Sushila M Shah Relative of key management personnel

Mr. Navin M Shah Relative of key management personnel

Mr. Deep Sanghvi Relative of key management personnel

Ms. Priyanka L Sanghvi Relative of key management personnel Mr. Rajen Sanghvi Relative of key management personnel

Mr. Bharat Sanghvi Relative of key management personnel

Mrs. Kalpana L Sanghvi Relative of key management personnel

Mrs. Rashmi B Sanghvi Relative of key management personnel

Shah Kanji Raichand & Co. Firm owned by relative of key management

M M Shah - HUF Relative of key management personnel

Mrs. Shaily Sanghvi Relative of key management personnel

Mr. Amit Sanghvi Relative of key management personnel

Mr. Bhogilal V Sanghvi Relative of key management personnel

Mrs. Gunvantiben Sanghvi Relative of key management personnel

The Company has identified all the related parties having transactions during the year as per details given below. During the year, there were no amounts written off or written back from such parties.

5. Sundry creditors include Rs.6.94lacs (Previous Rs.9.16 lacs) outstanding to Micro and Small Enterprises(on the basis of information available with the Company) Interest if any payable on delayed payment to Micro and Small Enterprises under Micro, and Small and medium enterprises development Act.,2006 is not ascertainable.

6. Figures for the previous year have been regrouped, wherever considered necessary to make them comparable with those of the current year.

7. Balances to the Debit and Credit of Customers, Suppliers and other parties are subject to confirmation.

8. Additional information pursuant to the provisions of 3, 4C and 4D of part II of Schedule VI of the Companies Act, 1956: 1.Licensed & Installed Capacity, Production, stocks and Turnover:

a. Licensed Capacity N.A.

b. Installed Capacity Can not be specified since it varies depending upon the specification of components to be moulded out of plastics granules.

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Mar 31, 2010

1. Contingent Liabilities:

- Outstanding amount of Bank Guarantees Rs.4,350,000 (Previous year Rs. 6,802,428)

- The Capital commitment (Net of Advances) in respect of order placed for new fixed assets is Rs. 26246 (Previous year Rs.1,961,325)

- The Company has filed an appeal against the Sales Tax Department for various disallowances under the Sales Tax Act. The Company is advised that it has fair chances of success in appeal. Same appeal order received in favour of the Company, (Previous year Rs. 12.62 lacs)

- The Company has obtained advance licenses for the import of raw materials, the export obligation pending are Rs.10,04,163 (Previous year Rs.50,24,818)

- Arrears of dividend on Participatory Cummulative Convertible Preference Shares- Rs.8,810,888 (Previous year Rs. 8,810,888)

2. Retirement Benefits:

Defined Contribution Plans

The company has recognised, in the profit and loss account for the year ended 31st March, 2010, following amounts as expenses under defined contribution plan under the head Contribution to Provident Fund & Other Funds in schedule 17 - Remuneration and Benefits to Employees.

Notes

Discount rate is determined by reference to market yields at the Balance Sheet date on Govt. Bonds, where the currency and 1

terms of the Govt. Bonds are consistent with the currency and estimated terms for the benefit obligation.

The estimate of future salary increases take into account inflation, seniority, promotion and other relevant factors such as 2 supply and demand in the employment market. 3 100% of Plan Assets are invested in group gratuity scheme offered by HDFC Standard Life Insurance Company Limited.

3. Segment Reporting:

Business Segment: The Company is engaged in the business of manufacturing of injection moulded plastics components, moulds etc, which as per the Accounting Standard (AS 17) ‘Segment Reporting is considered the only reportable segment.

4. Sundry creditors include Rs.9.16 lacs outstanding to Micro and Small Enterprises(on the basis of information available with the Company) Interest if any payable on delayed payment to Micro and Small Enterprises under Micro, and Small and medium enterprises development Act.,2006 is not ascertainable.

5. Figures for the previous year have been regrouped, wherever considered necessary to make them comparable with those of the current year.