Notes to Accounts of Technopack Polymers Ltd.

Mar 31, 2025

(h) Provisions, Contingent Liabilities and Contingent Assets

(As per AS 29 - “Provisions, Contingent Liabilities, and Contingent Assets ", under Companies
(Accounting Standards) Rules, 2021)

Provisions are recognized 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 will be required to settle the obligation.

A reliable estimate can be made of the amount of the obligation.

Provisions are reviewed at each balance sheet date and adjusted to reflect the best estimate. If
it is no longer probable that an outflow of resources will be required to settle the obligation,
the provision is reversed.

Contingent Liabilities are disclosed, unless the possibility of an outflow of resources is
remote:

A contingent liability is a possible obligation that arises from past events, whose existence
will be confirmed only by the occurrence or non-occurrence of one or more uncertain future
events.

Contingent liabilities are not recognized in the financial statements but are disclosed in the
notes to accounts if material.

Contingent Assets are not recognized in the financial statements:

Contingent assets are disclosed where an inflow of economic benefits is probable, but they
are not recognized as assets until realization is virtually certain.

If the realization of income is virtually certain, the related asset is recognized in the period in
which the change occurs.

(i) Cash and Cash Equivalents

(As per AS 3 - “Cash Flow Statements" under Companies (Accounting Standards) Rules, 2021)

Cash comprises cash on hand and demand deposits with banks.

Cash equivalents are short-term, highly liquid investments that are:

Readily convertible into known amounts of cash, and
Subject to an insignificant risk of changes in value.

Cash equivalents are held primarily for the purpose of meeting short-term cash
commitments, rather than for investment or other long-term purposes. Typically,
investments with original maturities of three months or less from the date of acquisition
qualify as cash equivalents.

(j) Cash Flow Statement

(As per AS 3 - “Cash Flow Statements”, under Companies (Accounting Standards) Rules,
2021)

The Company prepares its cash flow statement in accordance with AS 3 - Cash Flow
Statements using the direct method, whereby major classes of gross cash receipts and
gross cash payments are disclosed.

Cash flows are classified into the following categories:

Operating Activities: These are the principal revenue-generating activities of the

Company and include all other activities that are not classified as investing or financing
activities.

Investing Activities: These include the acquisition and disposal of long-term assets

(such as property, plant and equipment) and other investments not included in cash
equivalents.

Financing Activities: These include activities that result in changes in the size and
composition of the equity capital and borrowings of the Company.

Cash and cash equivalents include cash on hand, balances with banks in current
accounts, and other short-term, highly liquid investments with original maturities of three
months or less that are readily convertible into known amounts of cash and are subject to
an insignificant risk of changes in value.

(k) Earninas Per Share

(As per AS 20 - “Earnings per Share", under Companies (Accounting Standards) Rules, 2021)

Basic earnings per share (EPS) is calculated by dividing the net profit or loss attributable to
equity shareholders by the weighted average number of equity shares outstanding during
the reporting period. The weighted average number of equity shares outstanding is adjusted
retrospectively for any changes in the number of shares outstanding arising from bonus
issues, share splits, or similar events, that do not correspond to a change in the Company''s
resources. Diluted earnings per share is calculated by adjusting the net profit or loss for the
period and the weighted average number of equity shares for the effects of all dilutive
potential equity shares, such as convertible instruments or stock options, if any.

In the current year, EPS has been restated for the 1:1 bonus issue of equity shares allotted on
29th January 2025, in accordance with the requirements of AS 20.

Bonus Issue of Equity Shares

During the year ended 31st March 2025, the Company allotted 54,00,000 (Fifty-Four Lakh) fully paid-up equity
shares of face value Rs. 10/- each as bonus shares to the existing shareholders in the ratio of 1 (One) equity share for
every 1 (One) equity share held as on the record date.

The bonus shares rank pari passu in all respects with the existing equity shares, including entitlement to dividends
declared, if any, after the date of allotment.

Impact of the Bonus Issue:

The Company''s issued, subscribed, and paid-up equity share capital increased from Rs. 5.40 crore to Rs. 10.80 crore.
There was no cash outflow involved in the issuance of these bonus shares.

Earnings Per Share (EPS) for all periods presented in the financial statements have been restated to give effect to the
bonus issue, in accordance with the requirements of Ind AS 33 - Earnings per Share.

Accounting Ratios in which denominators are relating to Equity/ Capital Employed/ Investments, the ratios have
become unfavourable due to significant increase in the share capital of the company by way of Initial Public Offering
in the month of Novemeber 2022.

However the results of such additional capital is yet to be reaped by the company ( increase in sales/PBIT
significantly), as the additional machinery for which the capital is raised is yet to be delivered, and is expected to be
delivered in the next FY.

As per our report of even date For and on behalf of the Board of Directors

KARIA & ASSOCIATES

Chartered Accountants
FRN No.: 136752W

Kalpeshkumar Ishwarlal Pandya

Chief Financial Officer
DIN : 08196642

BRIJESH H. KARIA

Proprietor - -

Chetankumar I. Pandya Deepali Malpani fdhcpm9814el

Mem.No.: 149107 ³ v v v v >

UDIN: 25149107BMIRZF3765 Managing Director Secretary

MORBI, May 29, 2025 DIN : 08196693 DIN : NA

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Mar 31, 2024

(h) Provisions, Contingent Liabilities and Contingent Assets

(As per AS 29 “Provisions. Contingent Liabilities and Contingent Assets'')

Provisions are recognized for when the company has at present iegal or contractual obligation as a result of past events only if it is probable that an outflow of resources embodying economic outgo or loss will be required and if the amount involved can be measured reliably.

Contingent liabilities being a possible obligation as a result of past events, the existence of which will be confirmed only by the occurrence or non-occurrence of one or more future events not wholly in control of the company are not recognized in the accounts The nature of such liabilities and an estimate of its financial effect are disclosed in notes to the Financial Statements (if any). Contingent assets are neither recognized nor disclosed in the financial statements.

(i) Cash and Cash Equivalents

Cash comprises cash on hand and demand deposit with banks.

Cash equivalents are held for the purpose of meeting short-term cash commitments rather than for investment or other purposes. For an investment to qualify as a cash equivalent, it must be readily convertible to a known amount of cash and be subject to an insignificant risk of changes in value

(j) Cash Flow Statement

(As per AS 3 "Cash Row Statements")

Cash flow are reported using the direct method by the Company the cash floats from operating, investing and financing are segregated based on the available information Cash flows are inflows and outflows of cash and cash equivalents.

Operating activities are the principal revenue-producing activities of the enterprise and other activities that are not investing or financing activities.

Investing activities are the acquisition and disposal of long-term assets and other investments not included in cash equivalents

Financing activities are activities that result in changes in the size and composition of the owners'' capital and borrowings of the enterprise

(k) Eaminss Per Share

(As per AS 20 "Earnings per Share")

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

(1) Related Party Disclosures

(As per AS 18 ‘Related Party Disclosures'')

Related Party Relationships are as below.

(a) enterprises that directly, or indirectly through one ormore intermediaries, control, or are controlled by. or are under common control with the reporting enterprise (this includes holding companies, subsidiaries and fellow subsidiaries); - No such enterprise

(b) associates and joint ventures of the reporting enterprise and the investing party or venturer in respect of which the reporting enterprise is an associate or a joint venture; - No such associates or joint ventures

(c) individuals owning, directly or indirectly, an interest in the voting power of the reporting enterprise that gives them control or significant influence over the enterprise, and relatives of any such individual -No such Individual

(d) Key management personnel and relatives of such personnel;

This includes following individuals;

1 Kalpeshkumar Ishwarlal Pandya - KMP

2. Chetankumar Ishwarlal Pandya - KMP

3. Ishwarlal Dayalal Pandya - Relative of KMP

4. Neetaben Ishwarlal Pandya - Relative of KMP

5. Viralben Kalpeshkumar Pandya - Relative of KMP

6. Jalpaben Chetankumar Pandya - Relative of KMP 7 Dineshbhai Dayalal Pandya - Relative of KMP

(e) enterprises over which any person described in (c) or (d) is able to exercise significant influence This includes enterprises owned by directors or major shareholders of the reporting enterprise and enterprises that have a member of key management in common with the reporting enterprise

This includes following enterprises;

1 Gokul Industries

2 Technopack (Rafaleshwar)

Accordingly, following are the disclosures for the year;

1. Key Managerial Personnel: Directors (i.e. Kalpeshkumar Pandya and Chetankumar Pandya) are paid compensation in form of remuneration amounting to Rs 24.00.000 in FY 2023-24.

2. Loan to/from Directors/ other related parties : Kindly refer Note 5. relating to "Long Term Borrowings" for the amount of loans outstanding to related parties as on 31st March 2024. There are no loans advanced to such related parties

3 Rent for the factory'' shed has been paid amounting to Rs 60,000 to Gokul Industries and Rs. 60.000 each to Ishwarlal Pandya and Neetaben Pandya (Related parties of KMP) Refer Note 25 relating to "Other Expenses".

4. Purchases have been done from Technopack (Rafaleshwar) during the current FY amounting to Rs.

10 53.77,362 and payment has been done byfor Rs 6 03.06 087 (Current year Bank Payment TDS) during the entire year. Sales have been done to Technopack (Rafaleshwar) during the current FY amounting to Rs.

5 10.31.914 A closing balance of 59.60.639 stands by settling the account However, the transactions are carried out at arm''s length prices by the management

Accounting Ratios in which denominators are relating to Equity / C apital Employed/ Investments, the ratios have become unfavourable due to significant increase in the share capital of the company bv way of Initial Public Offering m the month of Novemeber 2022.

However the results of such additional capital is vet to be reaped bv the company (increase in sales/PBIT significantly), as the additional machinery for which die capital is raised is vet to be delivered, and is expected to be delivered in the next FY.

As per our report of even date For and on behalf of the Board of

KARIA & ASSOCIATES Director

Chartered Accountants FRN No.: 136752W

Deepali Malpani (DHCPM9814E)

Secretary

BRIJESH H. KARIA ^{DIN : NA}

Proprietor

Mem.No.: 149107 _ _ *

UDIN : 24149107BKCLTJ1235 Kalpeshkumar I. Pandya ^Che^tankumar L ^Pandya

MORBI, May 21, 2024 Chief Financial Officer Managing Director

DIN : 08196642 DIN : 08196693