Notes to Accounts of Shree Ganesh Elastoplast Ltd.

Mar 31, 2025

B.8 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 the Company will be required to settle the obligation, and a
reliable estimate can be made of the amount of the obligation.

The amount recognised as a provision is the best estimate of the consideration required to settle the
present obligation at the end of the reporting period, taking into account the risks and uncertainties
surrounding the obligation.

When some or all of the economic benefits required to settle a provision are expected to be
recovered from a third party, a receivable is recognised as an asset if it is virtually certain that
reimbursements will be received and the amount of the receivable can be measured reliably.

Contingent liability is disclosed for possible obligations which will be confirmed only by future events
not within the control of the Company or present obligations arising from past events where it is not
probable that an outflow of resources will be required to settle the obligation or a reliable estimate
of the amount of the obligation cannot be made.

Contingent Assets are not recognized since this may result in the recognition of income that may
never be realized.

B.9 Financial instruments

Financial assets and financial liabilities are recognised when the Company becomes a party to the
contractual provisions of the instruments.

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

Financial assets:

All regular way purchases or sales of financial assets are recognised and derecognised on a trade date
basis. Regular way purchases or sales are purchases or sales of financial assets that require delivery
of assets within the time frame established by regulation or convention in the marketplace.

Classification of financial assets

The financial assets are initially measured at fair value. Transaction costs that are directly attributable
to the acquisition of financial assets are added to the fair value of the financial assets on initial
recognition.

After initial recognition:

(i) Financial assets (other than investments) are subsequently measured at amortised cost using the
effective interest method.

Effective interest method is a method of calculating the amortised cost of a debt instrument and of
allocating interest income over the relevant period. The effective interest rate is the rate that exactly
discounts estimated future cash receipts (including all fees and points paid or received that form an
integral part of the effective interest rate, transaction costs and other premiums or discounts)
through the expected life of the debt instrument, or, where appropriate, a shorter period, to the net
carrying amount on initial recognition.

Investments in debt instruments that meet the following conditions are subsequently measured at
amortised cost:

• The asset is held within a business model whose objective is to hold assets in order to collect
contractual cash flows; and

• the contractual terms of the instrument give rise on specified dates to cash flows that are
solely payments on principal and interest on the principal amount outstanding.

Income on such debt instruments is recognised in profit or loss and is included in the "Other Income".
The Company has not designated any debt instruments as fair value through other comprehensive
income.

(ii) Financial assets (i.e. investments in instruments other than equity of subsidiaries) are
subsequently measured at fair value.

Such financial assets are measured at fair value at the end of each reporting period, with any gains
(e.g. any dividend or interest earned on the financial asset) or losses arising on re-measurement
recognised in profit or loss and included in the "Other Income".

Investments in equity instruments of subsidiaries

The Company measures its investments in equity instruments of subsidiaries at cost in accordance
with Ind AS 27. At transition date, the Company has elected to continue with the carrying value of
such investments measured as per the previous GAAP and use such carrying value as its deemed cost.

Impairment of financial assets:

A financial asset is regarded as credit impaired when one or more events that may have a detrimental
effect on estimated future cash flows of the asset have occurred. The Company applies the expected
credit loss model for recognising impairment loss on financial assets (i.e. the shortfall between the
contractual cash flows that are due and all the cash flows (discounted) that the Company expects to
receive).

De-recognition of financial assets:

The Company de-recognises a financial asset when the contractual rights to the cash flows from the
asset expire, or when it transfers the financial asset and substantially all the risks and rewards of
ownership of the asset to another party. If the Company neither transfers nor retains substantially
all the risks and rewards of ownership and continues to control the transferred asset, the Company
recognises its retained interest in the asset and an associated liability for amounts it may have to pay.
On de-recognition of a financial asset in its entirety, the difference between the asset''s carrying
amount and the sum of the consideration received and receivable is recognised in the Statement of
profit and loss.

Financial liabilities and equity instruments

Equity instruments

Equity instruments issued by the Company are classified as equity in accordance with the substance
and the definitions of an equity instrument. An equity instrument is any contract that evidences a
residual interest in the assets of an entity after deducting all of its liabilities.

Financial liabilities

All financial liabilities are subsequently measured at amortised cost using the effective interest
method. The carrying amounts of financial liabilities that are subsequently measured at amortised
cost are determined based on the effective interest method. Interest expense that is not capitalised
as part of costs of an asset is included in the "Finance Costs".

The effective interest method is a method of calculating the amortised cost of a financial liability and
of allocating interest expense over the relevant period. The effective interest rate is the rate that
exactly discounts estimated future cash payments (including all fees and points paid or received that
form an integral part of the effective interest rate, transaction costs and other premiums or
discounts) through the expected life of the financial liability, or (where appropriate) a shorter period,
to the net carrying amount on initial recognition.

De-recognition of financial liabilities

The Company de-recognises financial liabilities when, and only when, the Company''s obligations are
discharged, cancelled or have expired. An exchange between with a lender of debt instruments with
substantially different terms is accounted for as an extinguishment of the original financial liability
and the recognition of a new financial liability. Similarly, a substantial modification of the terms of an
existing financial liability (whether or not attributable to the financial difficulty of the debtor) is
accounted for as an extinguishment of the original financial liability and the recognition of a new
financial liability. The difference between the carrying amount of the financial liability derecognised
and the consideration paid and payable is recognised in profit or loss.

B. 10 Earnings per share

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

C. Critical Accounting judgements and key sources of estimation uncertainty

The preparation of financial statements in conformity with Ind AS requires the Company''s
Management to make judgments, estimates and assumptions about the carrying amounts of assets
and liabilities recognised in the financial statements that are not readily apparent from other sources.
The judgements, estimates and associated assumptions are based on historical experience and other
factors including estimation of effects of uncertain future events that are considered to be relevant.
Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting
estimates (accounted on a prospective basis) and recognised in the period in which the estimate is
revised if the revision affects only that period, or in the period of the revision and future periods of
the revision affects both current and future periods.

The following are the key estimates that have been made by the Management in the process of
applying the accounting policies:

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 are measured using valuation
techniques. 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 relating to these factors could affect the reported fair value of financial instruments.

Allowance for doubtful trade receivables

Trade receivables do not carry any interest and are stated at their nominal value as reduced by
appropriate allowances for estimated irrecoverable amounts.

Estimated irrecoverable amounts are derived based on a provision matrix which takes into account
various factors such as customer specific risks, geographical region, product type, currency
fluctuation risk, repatriation policy of the country, country specific economic risks, customer rating,
and type of customer, etc. Individual trade receivables are written off when the management deems
them not to be collectable.

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Mar 31, 2024

C. Terms/rights attached to equity shares

(A) The company has only one class of equity shares having a par value of Rs. 10 per share. Each holder of equity shares is entitled to one vote per share. The company declares and pays dividend in indian rupees. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting. During the year ended March 31, 2024, the amount per share of dividend recognised as distributions to equity share holders was Rs. NIL.

(B) In the event of liquidation of the company, the holders of equity shares will be entitled to receive remaining assets of the company, after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders.

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

Note 3.1 : Capital Management

For the purpose of the company''s capital management, capital includes issued equity capital and all other equity reserves attributable to the equity holders of the Company. The primary objectives of the Company''s capital management is to ensure that it maintains a strong credit rating and healthy capital ratios in order to support its business and maximize return to stakeholders through the optimization of the debt and equity balance.

The Company determines the amount of capital required on the basis of annual planning and budgeting and corporate plan for working capital, capital outlay and long term.

The Company monitors the capital structure on the basis of total debt (long term and short term) to equity and maturity profile of the overall debt portfolio of the Company

Note 3.2 : Financial Risk Management

In course of its business, the Company is exposed to certain financial risks that could have significant influence on the Company''s business and operational/ financial performance. These include market risk (including currency risk, interest rate risk and price risk), credit risk and liquidity risk.

The Board of Directors reviews and approves risk management framework and policies for managing these risks and monitors suitable mitigating actions taken by the management to minimize potential adverse effects and achieve greater predictability to earnings. In line with the overall risk management framework and policies, the management monitors and manages risk exposure through an analysis of degree and magnitude of risks.

(i) Market Risk

Market risk is the risk that changes in market prices, liquidity and other factors that could have an adverse effect on realizable fair values or future cash flows to the Company. The Company''s activities expose it primarily to the financial risks of changes in foreign currency exchange rates and interest rates as future specific market changes cannot be normally predicted with reasonable accuracy.

(a) Foreign Currency Risk Management:

The Company undertakes transactions denominated in foreign currencies and thus it is exposed to exchange rate fluctuations. The Company actively manages its currency rate exposures, arising from transactions entered and denominated in foreign currencies, and uses derivative instruments such as

foreign currency forward contracts to mitigate the risks from such exposures. The company does not use derivative instruments to hedge risk exposure.

(b) Interest Rate Risk Management:

The Company is exposed to interest rate risk pertaining to funds borrowed at both fixed and floating interest rates. The Company''s risk management activities are subject to management, direction and control under the framework of risk management policy of interest rate risk. The management ensures risk governance framework for the company through appropriate policies and procedures and that financial risks are identified, measured and managed in accordance with the Company''s policies and risk objectives.

For the company''s total borrowings, the analysis is prepared assuming that amount of the liability outstanding at the end of the reporting period was outstanding for the whole year.

(ii) Credit Risk

Credit risk refers to the risk that a counterparty or customer will default on its obligation resulting in a loss to the company. Financial instruments that are subject to credit credit risk principally consist of Loans, Trade and Other Receivables, Cash and Cash Equivalents, Investments and Other Financial Assets.

Credit risk encompasses both, the direct risk of default and the risk of deterioration of creditworthiness as well as concentration of risk. The Company''s exposure and the credit ratings of its counterparties are continuously monitored and the aggregate value of transactions concluded is spread amongst approved counterparties.

Trade receivables consist of a large number of customers, spread across diverse industries and geographical areas. The Company evaluates the concentration of risk with respect to trade receivables as low, as its customers are located in several jurisdictions and operate in independent markets. Ongoing credit evaluation is performed on the financial condition of accounts receivable and, where appropriate. The average credit period are generally in the range of 14 days to 90 days. Credit limits are established for all customers based on internal rating criteria.

(iii) Liquidity Risk

The Company monitors its risk of shortage of funds through using a liquidity planning process that encompasses an analysis of projected cash inflow and outflow.

The Company''s objective is to maintain a balance between continuity of funding and flexibility largely through cash flow generation from its operating activities and the use of bank loans. 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.

Note 3.7 : Other Notes

1. Outstanding Balance of unsecured loans, borrowings, trade receivables, trade payables and any other outstanding balances including all squared up accounts are subject to confirmation and reconciliation.

2. Previous Year Figures have been regrouped, rearranged, recalculated and reclassified whenever required and opening balance as per previous auditor certified.

4. Additional Regulatory Information

a) The Company does not have any benami property where any proceedings have been initiated on or are pending against the Company for holding benami property under the Benami Transactions (Prohibitions) Act, 1988 (45 of 1988) and rules made thereunder.

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

c) The Company has not entered into any scheme of arrangement which has an accounting impact on current or previous financial year.

d) The Company has not advanced or loaned or invested funds to any other person(s) or entity(ies), including foreign entities (Intermediaries) with the understanding that the Intermediary shall:

- directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Company (Ultimate Beneficiary) or

- provide any guarantee, security or the like to or on behalf of the ultimate beneficiary.

e) The Company has not received any fund from any person(s) or entity(ies), including foreign entities (Funding Party) with the understanding (whether recorded in writing or otherwise) that the Company shall

- directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party (Ultimate Beneficiaries) or

- provide any guarantee, security or the like on behalf of the ultimate beneficiaries.

f) The Company does not have any transaction which is not recorded in the books of accounts that has been surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961 (such as, search or survey or any other relevant provisions of the Income tax Act, 1961.

g) The Company has not traded or invested in crypto currency or virtual currency during the year under review.

h) There are no charges or satisfaction which are yet to be registered with Registrar of Companies beyond the statutory period.

i) The Company has no transactions with the Companies struck off under section 248 of the Companies Act, 2013 or section 560 of the Companies Act, 1956.

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Mar 31, 2015

1. As informed and self certification made by the management, Contingent Liabilities for the year ended 31st March, 2015 – refer note 9(b) of annexure to paragraph 1 of our audit report.

2. Deferred Tax Assets / (Liabilities) comprises timing differences on account of:

3. List of Related Parties and transactions made:

During the year 2014-15, director Bharat Mashruwala was paid remuneration amounting to 1,80,000. This remuneration is made up of only basic salary, no other emoluments or incentive was provided. The company has paid 1,80,000 for office rent. The office is owned by Merry Sharefin Ltd arising associate concern of having common management. Mihir Shah, an independent director of company has given unsecured loan of 33,578,267 during the year, of which the Company repaid 19,960,968 in the same year. At the end of financial year total outstanding loan was 13,617,299. At any time in year outstanding loan was not more than 3.0 cr. The company has paid total interest of 2,47,011 for loan given by Mihir R Shah. The company has paid seven lacs fifteen thousand as salary to Manit M Shah, son of director. Also, during the year, he was given advance of 195,000 against his salary out of which 180,000, was paid back within a month and remaining amount was adjusted against the salary. Paumil M Shah, son of director was paid three lacs five thousand as salary. Also, director Mayukh J Pandya and wife of a deirector Nina Pandya was given advance against purchase of commodity as they are having farmer status. However, Money was return within less than a week as transaction didn't happen as planned.

4. The company has during the period under review is in the business of Investment / trading in commodities in spot market and hedging / trading on the said commodities in future markets. Details of trading in commodities are as under:

5. Details about the Micro, Small and Medium Enterprises

The firm has not received any intimation from the suppliers regarding their status under the Micro, Small & Medium Enterprises Development Act, 2006 and hence disclosure regarding:

a. Amount due and outstanding to suppliers as at the end of accounting year

b. Interest paid during the year

c. Interest payable at the end of the accounting year

d. Interest accrued and unpaid at the end of the accounting year, has not been given. The firm is making efforts to get the confirmations from suppliers as regards their status under the Act.

6. Balance of trade receivable, trade payable, sundry creditors, loans and advances, Banks and deposits are subject to confirmations by the parties concerned.

7. Previous year's figures have been regrouped, reclassified and rearranged wherever necessary.

8. The company has not appointed a qualified secretary as defined under section 203 of the Companies Act, 2013.

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Mar 31, 2014

1. As informed and self certification made by the management, Contingent Liabilities for the year ended 31st March, 2014 - refer note 9(b) of annexure to paragraph 1 of our audit report.

2. List of Related Parties and transactions made:

During the year 2013-14, director Bharat Mashruwala was paid remuneration amounting to 1,50,000. This remuneration is made upon only basic salary, no other emoluments or incentive was provided. The company has paid 1,80,000 for office rent. The office is owned by Merry Sharefin Ltd arising associate concern of having common management. Mihir Shah, an independent director of company has given unsecured loan of which 21,74,731 is outstanding at year end. The company has paid total interest of 3,44,007 for loan given by Mihir R Shah. The company has paid seven lacs two thousand as professional fees to Manit M Shah, son of director and Paumil M Shah, son of director and nineteen thousand three hundred fifty four to as C&F agent commission to Paumil M Shah, son of director.

3. The company has during the period under review started new line of activities i.e. trading in commodities. Old business line of activities has been discontinued. During the year under review since there was only one line of business activity, segment reporting is not required. The company is in the business of investment in commodities and hedging / trading on the said commodities.

4. As explained by the management, Company has been disposing the VAT liabilities through appointment of clearing agent on behalf of itself.

5. Details about the Micro, Small and Medium Enterprises

The firm has not received any intimation from the suppliers regarding their status under the Micro, Small & Medium Enterprises Development Act, 2006 and hence disclosure regarding:

a. Amount due and outstanding to suppliers as at the end of accounting year

b. Interest paid during the year

c. Interest payable at the end of the accounting year

d. Interest accrued and unpaid at the end of the accounting year, have been given

e. The firm is making efforts to get the confirmations from suppliers as regards their status under the Act has not been given. The firm is making efforts to get the confirmations from the supplier as regards their status under the Act.

6. Information pursuant to the part B of schedule VI of the Companies Act, 1956 as compared to previous year since the company has discontinued its manufacturing business operation.

7. Balance of trade receivable, trade payable, sundry creditors, loans and advances, Banks and deposits are subject to confirmations by the parties concerned.

8. Previous year''s figures have been regrouped, reclassified and rearranged wherever necessary.

9. The company has not appointed a qualified secretary as defined under section 383A of the Companies Act, 1956.

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Mar 31, 2013

1. As informed and self certification made by the management, Contingent Liabilities for the year ended 31st March, 2013 is Nil (P. Y: NIL)

*All transactions carry forward from previous years. No new transactions undertaken during the year.

2. The company has not carried out any manufacturing activity during the year and hence the information on segment reporting has not been given for the year under report. Company has discontinued its manufacturing operations and during the previous year under review trading in commodities business is only undertaken.

3. Information pursuant to the part B of schedule VI of the Companies Act, 1956 as compared to previous year since the company has discontinued its manufacturing business operation.

4. Balance of trade receivable, trade payable, sundry creditors, loans and advances, Banks and deposits are subject to confirmations by the parties concerned.

5. Previous year''s figures have been regrouped, reclassified and rearranged wherever necessary.

6. The company has not appointed a qualified secretary as defined under section 383A of the Companies Act, 1956.

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Mar 31, 2012

1. As informed and self certification made by the management, Contingent Liabilities for the year ended 31st March, 2012 is Nil (P. Y: NIL)

2. Auditors Remuneration is made up of :

3. During the year under review, company has made revaluation for its freehold land for amount Rs. 1,80,47,362/- resulting into freehold land value revised up to 2,00,00,000/- from existing acquisition value of Rs. 19,52,638/-. (duly certified by certified valuer)

4. As per the past practice, the company is accounting for interest on loans granted/received on payment basis. The effect of such non provisions for the year as well as cumulative effect since 01/04/1998, being the date of effecting change in method of accounting, has not been quantified as the principal/ advances have been doubtful of recovery.

5. List of Related Parties and transactions made:

Sr. Name of the Party Nature of Amount transaction

1 Magnus Rubber Industries Limited Outstanding as 189750 debtors

2 Miraj Polymers Limited Outstanding as 6602997 debtors

3 Miraj Polymers Limited Outstanding as 6621016 loans

4 Magnus Rubber Industries Limited Investments 3844859

5 Miraj Polymers Limited Investments 401600

6 Miraj Polymers Limited Outstanding Interest 3778952

*All transactions carry forward from previous years. No new transactions undertaken during the year

6. The company has not carried out any manufacturing activity during the year and hence the information on segment reporting has not been given for the year under report.

7. The accounts have been prepared on the basis of going concern in spite of suspension of activity as well as non-provision of heavy doubtful outstanding in debtors and loans & advances, obsolete stock of trading goods, non-availability of power form Gujarat Electricity Board..

8. Information pursuant to the part B of schedule VI of the Companies Act, 1956. (Certified by Director and unaudited data accepted by Auditors in absence of records)

Product Licensed Installed Production Production Capacity capacity P.Y

Plastic Compound (M.T) N.A 432 NIL NIL

Rubber Stoppers (nos) NIL 500 lacs NIL NIL

9. In view of suspension of manufacturing activity and no production, details of trading stock is not applicable

10. No expenditure is made by the company in convertible foreign currency.

11. Balance of trade receivable, trade payable, sundry creditors, loans and advances, Banks and deposits are subject to confirmations by the parties concerned.

12. Previous year's figures have been regrouped, reclassified and rearranged wherever necessary.

13. The company has not appointed a qualified secretary as defined under section 383A of the Companies Act, 1956.

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Mar 31, 2010

1. As informed and self certification made by the management, Contingent Liabilities for the year ended 31st March, 2010 is Nil (P. Y: NIL)

2. As per the past practice, the company is accounting for interest on loans granted / received on payment basis. The effect of such non provisions for the year as well as cumulative effect since 01/04/1998, being the date of effecting change in method of accounting, has not been quantified as the principal / advances have been doubtful of recovery.

3. The company has not carried out any manufacturing activity during the year and hence the information on segment reporting has not been given for the year under report.

4. The accounts have been prepared on the basis of going concern in spite of suspension of activity as well as non-provision of heavy doubtful outstanding in debtors and loans & advances, obsolete stock of trading goods, non-availability of power form Gujarat Electricity Board..

5. In view of suspension of manufacturing activity and no production, details of trading stock is not applicable

6. No expenditure is made by the company in convertible foreign currency.

7. Balance of trade receivable, trade payable, sundry creditors, loans and advances, Banks and deposits are subject to confirmations by the parties concerned.

8. Previous years figures have been regrouped, reclassified and rearranged wherever necessary.

9. The company has not appointed a qualified secretary as defined under section 383A of the Companies Act, 1956.