అకౌంట్స్ గమనికలుApt Packaging Ltd.

Mar 31, 2025

27. Fair Value Measurement

The management assessed that the fair values of short term financial assets and liabilities
significantly approximate their carrying amounts largely due to the short term maturities of these
instruments. The fair value of financial assets and liabilities is included at the amount at which
the instrument could be exchanged in a current transaction among willing parties, other than in
a forced or liquidation sale.

The Company determines fair values of long term financial assets and financial liabilities by
discounting contractual cash inflows/ outflows using prevailing interest rates of financial
instruments with similar terms. The fair value of investment is determined using quoted net
assets value from the fund. Further, the subsequent measurement of all finance assets and
liabilities (other than investment in mutual funds) is at amortized cost, using the effective interest
method.

Discount rates used in determining fair value

The interest rate used to discount estimated future cash flows, where applicable, are based on
the incremental borrowing rate of the borrower which in case of financial liabilities is the
weighted average cost of borrowing of the Company and in case of financial assets is the
average market rate of similar credits rated instrument.

The Company maintains policies and procedures to value financial assets or financial liabilities
using the best and most relevant data available. In addition, the Company internally reviews
valuation, including independent price validation for certain instruments.

Fair value hierarchy

All financial instruments for which fair value is recognized or disclosed are categorized within
the fair value hierarchy described as follows, based on the lowest level input that is significant to
the fair value measurement as a whole.

Level -1

Quoted (unadjusted) price is active market for identical assets or liabilities
Level 2:

Valuation technique for which the lowest level input that has a significant effect on the fair value
measurement are observed, either directly or indirectly.

Level 3

Valuation technique for which the lowest level input has a significant effect on the fair value
measurement is not based on observation market data.

28. Financial Instruments and Risk Review

i)Capital Management

The Company''s capital management objectives are:-

The Board policy is to maintain a strong capital base so as to maintain inventor, creditors and
market confidence and to future development of the business. The Board of Directors monitors
return on capital employed.

The Company manages capital risk by maintaining sound/optimal capital structure through
monitoring of financial ratios, such as debt-to-equity ratio and net borrowings-to-equity ratio on a
monthly basis and implements capital structure improvement plan when necessary.

The Company uses debt ratio as a capital management index and calculates the ratio as Net
debt divided by total equity. Net debt and total equity are based on the amounts stated in the
financial statements.

Debt-to-equity ratio is as follows

ii)Credit Risk

Credit risk is the risk of financial loss arising from counter-party failure to repay or service debt
according to contractual terms or obligations. Credit risk encompasses both, the direct risk of
default and the risk of deterioration of credit worthiness as well as concentration of risks. Credit
risk is controlled by analyzing credit limit and creditworthiness of customers on a continuous
basis to whom the credit has been granted.

Financial instruments that are subject to concentration of credit risk principally consists of trade
receivable investments, derivative financial instruments and other financial assets. None of the
financial instruments of the Company results in material concentration of credit risk.

Exposure to credit risk:-The carrying amount of financial assets represents the maximum credit
exposure. The maximum exposure to credit risk is as under, being the total of the carrying
amount of balances with trade receivables

Trade receivables:-Ind AS requires expected credit losses to be measured through a loss
allowance. The Company assesses at each date of financial statement whether a financial asset
or group of financial assets is impaired. The Company recognizes lifetime expected losses for
all contract assets and / or all trade receivables that do not constitute a financing transaction.
For all other financial assets, expected credit losses are measured at an amount equal to 12
months expected credit losses or at an amount equal to the life time expected credit losses, if
the credit risk on the financial asset has increased significantly since initial recognition.

Before accenting any new customer, the Company uses an external/internal credit scoring
system to asses potential customer''s credit quality and defines credit limits by customer. Limits
and scoring attributed to customer are reviewed on periodic basis.

iii)Liquidity Risk:-a)Liquidity risk management:-Liquidity risk refers to the risk that the Company
cannot meet its financial obligations. The objective of liquidity risk management is to maintain
sufficient liquidity and ensure that funds are available for use as per requirements. The
Company manages liquidity risk by maintaining adequate reserves, banking facilities and
reserve borrowing facilities, by continuously monitoring forecast and actual cash flows, and by
matching the maturity profiles of financial assets and liabilities.

b)Maturities of financial liabilities:-The following table details the remaining contractual
maturities for its financial liabilities with agreed repayment period. The amount disclosed in the
table has been drawn up based on the undiscounted cash flow of financial liabilities based on
the earliest date on which the Company can be required to pay. The table includes both interest
and principal cash flows.

c)Maturities of financial assets:- The expected maturity for financial assets of the Company are
all current.

iv)Market Risk:-Market risk is risk that the fair value or future cash flows of a financial
instrument will fluctuate because of changes in the market prices. Such changes in the value of
financial instruments may result from changes in the foreign currency exchange rate, interest
rate, credit, liquidity and other market changes.

29. Contingent liabilities not provided for in respect of followings:

(a) Value of Bonds executed by the company in favour of Commissioner, Central Excise and
Customs, Government of India under the Export Promotion Capital Goods Scheme of the
Government of India for import of capital goods Rs. 95.66 Lakhs inclusive interest (Previous
Year: Rs. 660.33 Lakhs) for which export obligations are met and discharge certificate are
awaited.

(b) The Hon''ble Civil Court Sub- Division, Aurangabad has passed an order on 13.09.2018 in
favour of Priti Engineering (Prop. Bharat Bansi Bhalerao) for recovery of Rs. 1.83 Lakhs along
with interest @6% p.a. which is appealed against by the Company before the Additional District
and Session court, Paithan district, Sambhajinagar.

(c) The CIT(Appeal) has disposed off the case pertaining to the assessment year 2018-19
(Financial year 2017-18) allowing partial relief to the assesee and partially it is remanded back
to the assessing officer for re-verification and disposal. The consequential liability, if any, is not
ascertainable.

(d) Appeal filed by Income Tax Department before the Hon''ble High Court of Bombay, bench at
Aurangabad against an order of the Income Tax Appealate Tribunal, Pune for the assessment
year 2010-11 in which addition of Rs. 111.43 Lakhs are deleted resulting into relief of Income
tax Rs. 37.87 Lakhs

(e) The TDS demands raised by the income tax department for the Financial year 2020-21 to
2024-25 amounting to Rs. 5.49 Lakhs for Aurangabad branch which are under reconciliation.

(f) In respect of Fiscal liabilities that may arise on account of non-observance of provisions of
various fiscal statues, Companies Act, Value Added Tax and other related laws and interest /
other charges chargeable on demands raised and not paid if any, amount is not ascertainable.

(g) A demand notice for Rs. 20.70 Lakhs issued by Goods and Service Tax Department in
respect of Excess outward tax in GSTR1 compared to GSTR3B; Excess ITC claimed in
GSTR3B for FY 2019-20 for Aurangabad branch. The appeal against this order has been filed
towards appellate authority with a pre-deposit of Rs. 1 Lakhs.

30. Estimated amount of contracts remaining to be executed on capital account and not provided
for - NIL

31. The net worth of the company has been fully eroded; however, the accounts of the Company
for the year ended 31st March, 2025 have been prepared on a going concern basis in veiw
subsequent allotment of preferential equity shares of Rs. 1960.00 Lakhs inclusive of security
premium resulting in a positive net worth.

32.In the opinion of the Board, Current and Non-current Assets, Loans and Advances are
approximately of the value stated, if realized in the ordinary course of the business.

33. Certain accounts of Trade Receivable, Trade Payable, Unsecured Loans, Employees, Loans
and Advances are subject to confirmations and reconciliations, if any. The difference as may be
noticed on reconciliation will be duly accounted for on completion thereof. In the opinion of the
management, the ultimate difference will not be material.

34. Due to carried forward business losses and unabsorbed depreciation, the company is not
recognizing any deferred tax assets, as there is no virtual certainty regarding their recoverability.

35. Managerial Remuneration:

37.The Company is exclusively engaged in the business of manufacturing of Co-extruded Tubes and
related activities. This in the context of Ind AS 108 “Operating Segments”, constitutes one single primary
segment. Geographical Segment is identified as the secondary segment, the details of the same is
givnebelow:-
38.In the opinion of the Board, property, plant and equipments have been stated at cost, which
is at least equal to or less than the realizable value if sold in the ordinary course of business.
Consequently, the management is of the opinion that there is no impairment of assets.

42. Difference in Foreign Exchange Gain (Loss) included in other income

43. The company has not made any loans and advances in the nature of loan, provided any
security or guarantee and granted securies during the year. The investments made has been
disclosed in note no 4 to the financial statements which within the limit prescribed under section
186 of the Act.

44. The net profit (loss) for the purpose of measurement of basic and diluted earnings per share
in terms of Ind AS - 33 on Earnings Per Share has been calculated as under:

The foreign currency outstanding has been translated at the rates of exchange prevailing on the
Balance Sheet date in accordance with Ind AS 21 - "The Effects of Changes in Foreign
Exchange Rates”.

46. No proceeding has been initiated or pending against the company for holding any benami
property under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and the rules made
thereunder.

47. The company has used the borrowings from banks and financial institutions for the purpose
for which it was taken at the balance sheet date. The monthly returns or statements of current
assets filed by the Company with banks or financial institutions are in agreement with the books
of accounts.

48. The company is not declared wilful defaulter by any bank or financial Institution or other
lender during the year.

49. During the year, the company has not carried out any transactions with companies struck off
under section 248 of the Companies Act, 2013 or section 560 of Companies Act, 1956.

50. During the year, the company has registered and satisfied charges with Registrar of
Companies, wherever required.

51. The Company does not have any investment property, hence related disclosure is not
required.

52. The company has not advanced or loaned or invested funds (either borrowed funds or share
premium or any other sources or kind of funds) to any other person(s) or entity(ies), including
foreign entities (Intermediaries) with the understanding (whether recorded in writing or
otherwise) that the Intermediary shall (i) directly or indirectly lend or invest in other persons or
entities identified in any manner whatsoever by or on behalf of the company (Ultimate
Beneficiaries) or (ii) provide any guarantee, security or the like to or on behalf of the Ultimate
Beneficiaries.

53. There is no case of search or survey of any other cases related to income surrendered or
disclosed in any tax assessments under the Income Tax Act, 1961.

56.The Company has made borrowings from banks on the basis of security of current assets
and statements of current assets filed by the Company with banks are largly in agreement with
the books of accounts. There have been some differeences of insignificant nature between bank
statement and the unaudited books of account maintained by the company. Discrepancies are
mentioned below.

57. The company has not met with the applicability criteria of provisions of section 135 of the Act
with respect to corporate social responsibility, hence the related information has not been
provided.

58. Previous year''s figures have been re-groupped/ re-arranged wherever necessary.

As per our report of even date attached

For Gautam N Associates For and on behalf of the Board of Director

Chartered Accountants
FRN103117W

Arvind Machhar Sandeep Machhar

Managing Director Director

Gautam Nandawat DIN: 00251843 DIN: 00251892

Partner
M No 32742

UDIN :25032742BMJJLA4489

Shrikant Wani Jyoti Bajpai

Chief Financial Officer Company Secretary

Place : Chhatrapati Sambhajinagar
Date: 28th May 2025

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Mar 31, 2014

1 HISTORY:

Apt Packaging limited established in 1980 (earlier known as Anil Chemicals and Industries Limited till -19.06.2008) engaged in manufacturing of co extruded plastic tubes used for packaging. The facility was set up in the Aurangabad, Maharashtra in the year 1996 and a new unit has been put up in the state of Uttarakhand in the year 2010. The new unit is eligible for various incentives of excise, income tax and other for a period of 10 years. The chemical division of the Company was de merged into a new Company in the year 2008. The Company has been registered as a sick Company by Board for Industrial and Financial Reconstruction, New Delhi vide order dated 21.11.2013

2. In view of various High Courts judgments and on prudence basis, the management of the Company is of the view that the penal provisions of Rs. 200 per day for the returns of TDS / TCS filed beyond the prescribed date as per the provisions of Section 234E of the Income Tax Act, 1961 is neither provided nor disclosed in terms of amount separately.

3. Hon''bie BIFR while discharging the Company from Sick Industrial Companies Act (SiCA) vide order dated 16.06.2011 has ordered to implement the unimplemented portion of the Sanctioned Scheme as yet by all concerned. The unimplemented portion of the Sanctioned Scheme is as under:

4. GOING CONCERN:

The Company has been once again declared as a "Sick Industrial Company" by BIFR vldes Its hearing dated 10th October, 2013 vide order dated 20th November 2013. BIFR has appointed Punjab National Bank as the operating agency.

The Company has approached to sole banker Punjab National Bank for re-schedulement of installments and concessions in rate of Interest and bank charges. The Company is approaching to other governments for some reliefs. The Company is preparing Draft Rehabilitation Scheme for submission to OA & BIFR. "In view of above the accounts of the Period under review has been prepared on going concern basis".

5. Certain statutory requirements and records are in the process of their compilation / up-dation.

6. The provision for capital gain tax (income tax) on sale of business assets has not been made in the books of accounts as the same is to be set off from unabsorbed brought forward business losses and unabsorbed depreciation as well as current business loss and depreciation. This view is also upheld by the Hon''bie Delhi High Court in case of Assistant Commissioner of Income Tax v/s Lavish Apartments Private Limited and the management has relied on the same.

7. In view of general circular Number 08/2014 dated April, 2014 issues by the Ministry of Corporate Affairs (MCA) the financial statements, auditor''s report and board reports are prepared and presented according to the relevant provisions / schedules /rules of the Companies Act 1956.

8. The outstanding balances of Debtors, Creditors and Loans & Advances (taken and given), balances with various statutory / fiscal authorities (assets & Liabilities) are subject to confirmation, reconciliation and consequent adjustments, if any. The differences as may be noticed on reconciliation are being accounted for and will be duly accounted for on completion thereof, tn the opinio of the Management thq ultimate difference will not be material.

9. Employee Benefits

As per Accounting Standard 15 "Employee Benefits", the disclosures of Employee benefits as defined in the Accounting Standard are given below: Defined Contribution Plans: Provident Fund

During the year, the Company has recognized the following amounts in the Profit & Loss Account

Defined Benefit Plans

The company has neither created fund nor contributed to Scheme framed by the Insurance Company for the defined benefit plans for the qualifying employees. The present value of the defined benefit obligation and the related current service cost were measured using the Projected Unit credit method with actuarial valuations being carried out at each balance sheet date.

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Mar 31, 2013

NOTE NO.1: HISTORY:

Apt Packaging limited established in 1980 (earlier known as Anil Chemicals and Industries Limited till 19.06.2008) engaged in manufacturing of co extruded plastic tubes used foe packaging. The facility was set up in the Aurangabad, Maharashtra in the year 1996 and a new unit has been put up in the state of Uttarakhand in the year 2010. The new unit is eligible for various incentives of excise, income tax and other for a period of 10 years. The chemical division of the Company was de-merged into a new Company in the year 2008.

NOTE NO.2 CONTINGENT LIABILITIES:

a. Claims not acknowledged as debts are on account of a suit filed against the company by M/s Food Fats and Fertilizers Ltd. on behalf of Apte Organic Chemicals Pvt. Ltd. in Mumbai High Court for the recovery of Rs.2.67 Lacs (Rs.2.67 Lacs). The company is contesting the same. The BIFR have ordered for repayment subject to withdrawal of suit.

b. Guarantee given by the Company for sales tax deferment dues of the resulting Company Machhar Industries Limited as'' per the sanctioned scheme ordered by BIFR RS. 399.36 Lacs (Rs. 399.36 Lacs).

c. Bonds executed by the company in favour of Commissioner, Central Excise and Customs, Government of India for import of capital goods under the Export Promotion Capital Goods Scheme of the Government of India for import of capital goods Rs. 748.74 Lacs (Rs. 669.83 Lacs), for export obligations to that extent to be completed.

d. In respect of demand raised by Sales Tax authority, AurangabadforRs.1.52 lacsforthe FY 2004-2005 on assessment for which the company have made appropriate representation for withdrawal of the demand to the department.

e. In respect of notices issued by Sales Tax Authority, Hardwar with respect to various compliances for Rs. 1.61 Lacs

f. In respect of Fiscal liabilities that may arise on account of non-observance of provisions of various fiscal statues, Companies Act and other related laws and interest / other charges chargeable on demands raised and not paid if any, amount is not ascertainable.

g. Estimated amount of contract remaining to be executed net of advances on capital account and not provided for Rs.73.31 Lacs (Rs. 148.53 Lacs). *

NOTE NO.3: Hon''ble BIFR while discharging the Company from Sick Industrial Companies Act (SICA) vide order dated 16.06.2011 has ordered to implement the unimplemented portion of the Sanctioned Scheme as yet by all concerned.''The unimplemented portion of the Sanctioned Scheme is as under:

NOTE NO.4 : As per the financial statement as on 31.03.2013, the net worth of the Company has eroded completely and turned negative. Therefore as required by provisions of Sick Industrial Companies Act, the company has to make reference to Board for Industrial and Financial Reconstruction (BIFR), New Delhi. The Company had already informed on 23.11.2012 to BIFR for erosion of net worth by more than 50% of the peak net worth in the immediately preceding four years. However earlier vide order

dated 16.06.2011, BIFR discharged the Compahy from SICA as the net worth of the Company became positive as per Audited Balance Sheet as on 3t.03.2011. "In view of above, the accounts of the year under review have been prepared on going Concern Basis.

NOTE NO. 5: Certain statutory requirements and records are iri the process of their compilation / up-dation. The outstanding balances of Debtors, Creditors and Loans & Advances (taken and given), balances with various statutory (fiscal authorities (assets & Liabilities) i.e. excise & service tax deposits / balances are subject to-confirmation, reconciliation and consequent adjustments, if any. The difference as may be noticed on reconciliation will be duly accounted for on completion thereof. In the opinion of the Management the ultimate difference will not be material.

NOTE NO.6 : EMPLOYEE BENEFITS"

As per Accounting Standard 15 "Employee Benefits", the disclosures of Employee benefits as defined in the Accounting Standard are given below:

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Mar 31, 2012

NOTE NO. 1: HISTORY:

Apt Packaging limited established in 1980 (earlier known as Anil Chemicals and Industries Limited till 19.06.2008) engaged in manufacturing of co extruded plastic tubes used for packaging. The facility was set up in the Aurangabad, Maharashtra in the year 1996 and a new unit has been put up in the state of Uttarakhand in the year 2010. The new unit is eligible for various incentives of excise, income tax and other for a period of 10 years. The chemical division of the Company was de-merged into a new Company in the year 2008.

NOTE NO. 2: SHARE CAPITAL

Disclosure:

1) *25,00,000 paid up shares issued to promoters during the financial year 2010-2011 at par are not transferable up to 25.10.2013

2) The Company has only one class of equity shares having a par value of Rs. 10/- per share. Each equity share carries one vote and is entitled to dividend that may be declared by the Board of Directors, which is subject to the approval of the shareholders in the Annual General Meeting.

NOTE NO. 3: LONG TERM BORROWINGS

a) Primarily secured by hypothecation of some of the fixed assets of the company situated at Aurangabad unit and is repayable in equated monthly installments, due up to October 2013.

b) Primarily secured by hypothecation of one machine at Laksar unit of the company and is repayable in equated monthly installments, due up to March, 2015.

c) Primarily secured by hypothecation of some of the fixed assets at Laksar unit of the company and is repayable in equated monthly installments, due up to August, 2015.

d) Primarily secured by hypothecation of some of the machines at Laksar- unit of the company and is repayable in installment of Rs. 3 Lacs from April 2012 to June 2012 and of Rs. 7.80 Lacs from July 2012 to March 2016. Part disbursement of this loan is pending.

e) Primarily secured by hypothecation of some of the machines at Laksar unit of the company and is repayable in equated monthly installments, due up to December 2017. Part disbursement of this loan is pending.

All the five term loans from PNB as mentioned above as a, b, c, d & e are personally guaranteed by chairman cum managing director and one director of the company. All of these are collaterally secured by all the fixed assets of the Company situated at Pharoia, Chikalthana and Laksar plants. The loan as mentioned in a above carries interest at BPLR of the bank which is presently at 14% p.a. and other term loans as mentioned in b, c, d, e above carries the interest rate depending upon the BPLR & base rate of the bank which presently works out from 16 to 16.50% p.a.

f) Secured by hypothecation of the vehicles acquired by utilising the said loan in the name of chairman cum managing director of the company and is repayable in equated monthly installments, due upto October 2015, the loan carries the interest @ 7% p.a.

g) Secured by hypothecation of the vehicles acquired by utilising the said loans in the name of chairman cum managing director of the company and is repayable in equated monthly installments, due upto October 2013, the loan carries the interest @ 9 to 11 p.a.

h) Secured by hypothecation of the vehicles acquired by utilising the said loans and is repayable in equated monthly installments, due upto August 2013, the loan carries the interest @ 16 % p.a.

i) Secured by FLC issued by PNB and was repayable in equated quarterly installments, due upto January 2012, without any interest.

The loan is in Euro currency

j) Secured against the machine purchased from the machine supplier and is repayable up to the year 2012-2013 without any interest. The loan is in CHF currency. Rs. 58.78 Lacs repayment is to be made during the year 2012-2013 from disbursement from the term loan as mentioned in d above hence shown under long term liability

k) Repayable up to the year June 2014 without any interest. The loan is in CHF currency. The amount of Rs. 126.19 shown as long term liability includes Rs. 31.89 Lacs repayables during the year 2012-2013 which are to be financed from fresh disbursement from term loan as mentioned in d above.

l) This is as per incentive scheme of government of Maharashtra for the tube unit of the company situated at Pharola. The repayment of each year of the deferred sales tax amount is to be made in five equal installments in 11th to 15th year, without any interest.

m) Carry interest @ 9% to 15% p.a.

n) Carry interest @ 12% p.a.

o) Interest free.

p) Carry interest @ 9% p.a.

NOTE NO. 4: DEFERRED TAX LIABILITY

Disclosure:

1) Cash credit, packing credit and working capital demand loan from bank are secured by hypothecation of all tangible movable assets both present and future including stock of raw materials, finished goods, goods in process, stores and trade receivables etc and is further secured by a second Charge on the fixed assets at Laksar, Pharola and Chikalthana. The cash credit, packing credit post shipment credit and inland letter of credit acceptance is repayable on demand and carries interest rates © 11% to 16% p.a.

2) Outstanding foreign currency buyer's credit loans are unsecured and cany an interest rate ranging from libor plus 350 bps.

NOTE NO. 5: TRADE PAYABLES 31.03.2012 31.03.2011

Disclosure:

There are no dues to any creditors constituting "Suppliers" within the meaning of Section 2 (n) of the Micro, Small and Medium Enterprises Development Act, 2006. The identification of Micro, Small and Medium enterprises is based on the management's knowledge of their status. The Company has not received. any intimation from suppliers regarding their status under The Micro, Small and Medium Enterprises Development Act, 2006".

NOTE NO. 6 EXTRA-ORDINARY ITEMS

Disclosure:

1) During the year the company has sold fixed assets of the Emulsion and WPC units situated at Nandrabad, Aurangabad and plant & machineries as scrap of the PAN unit situated at Chikalthana, Aurangabad. The operations of these units were suspended for more than 12 years. The business activity pertains to these divisions were discontinued due to obsolete macheneries and overall market conditions. The disposal of assets is in compliance to sanctioned scheme dated 23.10.2007 ordered by Hon'ble Board for Industrial and Financial Reconstruction. Therefore this disposal does not affect the going concern status of company.

2) The profit of extraordinary nature as mentioned in the financial statements of Rs. 130.12 is from these sales net of loss of Rs. 4.01 Lacs.

3) The provision for capital gain tax (income tax) on sale of business assets has not been made in the books of accounts as the same is to be set off from unabsorbed brought forward business losses and unabsorbed depreciation as well as current business loss and depreciation. This view is also upheld by the Hon'ble Delhi High Court in case of Assistant Commissioner of Income Tax v/s Lavish Apartments Private Limited and the management has relied on the same.

4) During the year depreciation of all above divisions is charged amounting to Rs. 7.05 Lac (Rs. 8.07Lacs)

NOTE NO. 7: SEGMENT REPORTING

Broadly by all criteria the activities of the company falls in the segments as detailed below.

Criteria Segment

Product base 1) Co-extruded Tube, 2) Garments

Customer base Domestic market/overseas market

Geographical Area of Operation Domestic market/overseas market

Geographical area of assets location Maharashtra, Uttarakhand

NOTE NO. 8: As on 31.03.2012 as per the financial statement, the net worth of the company has reduced to below 50% from the peak net worth in preceding 4 years. The company is in process for complying with the Board for Financial and industrial Reconstruction as per the provisions of Section 23 of Sick Industrial Companies Act.

NOTE NO. 9: The provision for capital gain tax (income tax) on sale of business assets has not been made in the books of accounts as the same is to be set off from unabsorbed brought forward business losses and unabsorbed depreciation as well as current business loss and depreciation. This view is also upheld by the Hon'ble Delhi High Court in case of Assistant Commissioner of Income Tax v/s Lavish Apartments Private Limited and the management has relied on the same.

NOTE NO. 10: During the year the company has disposed off all of the shares held in the erstwhile subsidiary company M/S Nawneet Machine Manufacturing Company Private Limited at par and the company ceases to be subsidiary. Therefore the consolidated balance sheet is not prepared. Hence the previous year financials of M/S Nawneet Machine Manufacturing Company Private Limited is as under:

NOTE NO. 11: CONTINGENT LIABILITIES:

a. Claims not acknowledged as debts are on account of a suit filed against the company by M/s Food Fats and Fertilizers Ltd. on behalf of Apte Organic Chemicals Pvt. Ltd. in Mumbai High Court for the recovery of Rs. 2.67 Lacs (Rs. 2.67 Lacs). The company is contesting the same. The BIFR have ordered for repayment subject to withdrawal of suit.

b. Guarantee given by the Company for sales tax deferment dues of the resulting Company Machhar Industries Limited as per the sanctioned scheme ordered by BIFR Rs. 399.36 Lacs (Rs. 399.36 Lacs).

c. Bonds executed by the company in favour of Commissioner, Central Excise and Customs, Government of India for import of capital goods under the Export Promotion Capital Goods Scheme of the Government of India for import of capital goods Rs. 669.83Lacs (Rs. 609.84 Lacs), for export obligations to that extent to be completed.

d. In respect of demand raised by Sales Tax authority, Aurangabad for Rs. 1.52 lacs for the FY 2004-2005 on assessment for which the company have made appropriate representation for withdrawal of the demand to the department.

e. In respect of notices issued by Sales Tax Authority. Hardwar with respect to various compliances for Rs. 1.61 Lacs

f. In respect of fiscal liabilities that may arise on account of non-observance of provisions of various fiscal statues, Companies Act and other related laws and interest chargeable on demands raised and not paid if any, amount is not ascertainable.

g. Estimated amount of contract remaining to be executed net of advances on capital account and not provided for Rs. 148.53 Lacs (Rs. 61.34 Lacs).

NOTE NO. 12: Certain statutory requirements and records are in the process of their compilation/updation.

NOTE NO. 13: The outstanding balances of Debtors, Creditors and Loans & Advances (taken and given), balances with various statutory/fiscal authorities (assets & Liabilities) i.e. excise deposits/balances, VAT/Sales Tax dues, TDS/TCS are subject to confirmation, reconciliation and consequent adjustments, if any. The difference as may be noticed on reconciliation will be duly accounted for on completion thereof. In the opinion of the Management the ultimate difference will not be material.

NOTE NO. 14: EMPLOYEE BENEFITS

Defined Benefit Plans

The company has neither created fund nor contributed to Scheme framed by the Insurance Company for the defined benefit plans for the qualifying employees. The present value of the defined benefit obligation and the related current service cost were measured using the Projected Unit credit method with actuarial valuations being carried out at each balance sheet date.

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Mar 31, 2011

1. Segment Reporting:

Broadly by all criteria the activities of the company falls in the segments as detailed below.

Criteria Segment

Product base 1) Co-extruded Tube, 2) Garments

Customer base Domestic market/ overseas market

Geographical Area of Domestic market/ overseas market Operation

Geographical area of Maharashtra, Uttarakhand assets location

2) Sales include Garments (inclusive of transportation) Rs.128.62 Lacs (Rs.171.23 Lacs.).

3) Sales are stated at gross value inclusive of taxes and Freight. Sales includes inter unit transfer of finished / semi-finished goods amounting to Rs. 78.83 Lacs (NIL).

4) As per the Sanctioned Scheme ordered by Hon'ble BIFR, during the year the Company is eligible for waiver of Rs. 65.20 Lacs by way of remission of dues from one of the unsecured creditor of the Company. The same is shown in the profit and loss account as extra ordinary item.

5) Contingent Liabilities:

a. Claims not acknowledged as debts are on account of a suit filed against the company by M/s Food Fats and Fertilizers Ltd. on behalf of Apte Organic Chemicals Pvt. Ltd. in Mumbai High Court for the recovery of Rs.2.67 Lacs (Rs.2.67 Lacs). The company is contesting the same. The BIFR have ordered for repayment subject to withdrawal of suit.

b. Guarantee given by the Company for sales tax deferment dues of the resulting Company Machhar Industries Limited as per the sanctioned scheme ordered by BIFR RS. 399.36 Lacs (Rs. 399.36 Lacs).

c. Bonds executed by the company in favour of Commissioner, Central Excise and Customs, Government of India for import of capital goods under the Export Promotion Capital Goods Scheme of the Government of India for import of capital goods Rs. 609.84 Lacs (Rs. 572.28 Lacs), for export obligations to that extent to be completed.

d. In respect of demand raised by Sales Tax authority, Aurangabad for Rs.1.52 lacs for the FY 2004-2005 on assessment for which the company have made appropriate representation for withdrawal of the demand to the department.

e. In respect of notices issued by Sales Tax Authority, Hardwar w.r.t. various compliances for Rs. 1.61 Lacs

f. In respect of fiscal liabilities that may arise on account of non-observance of provisions of various fiscal statues, Companies Act and other related laws and interest chargeable on demands raised and not paid if any, amount is not ascertainable.

g. Estimated amount of contract remaining to be executed net of advances on capital account and not provided for Rs.61.34 Lacs (Rs.74.62 Lacs).

6. Certain statutory requirements and records are in the process of their compilation / up-dation.

7. During the year manufacturing activities at the plants of the company situated at Chikalthana Aurangabad and Nandrabad Dist. Aurangabad were remained suspended. However, depreciation of all above divisions is charged amounting to Rs.8.07 Lac (Rs. 7.93 Lacs)

8. Deferred Income Taxes:

a. The company is having carried forward losses amounting to Rs.1,169.69 Lacs (Rs.887.88 Lac) as per books of accounts and also as per the Income tax 1961, which is equivalent or more than book loss.

b. In view of the carried forward losses / unabsorbed depreciation in respect of past years both as per books and as per income tax, the company may not have the taxable income in the near future and hence, cumulative net deferred tax assets after deducting deferred tax liabilities have not been recognized by the company on prudence basis in accordance with the AS-22 issued by the ICAI. Similarly, net deferred tax asset for the current year have also not been recognized on prudence basis.

9. The Company is in process to identify the names of the Companies, firms and parties etc on which Micro, Small and Medium enterprises Act'2006 is applicable and accordingly letters to all of the creditors, suppliers and service providers have been posted by the Company. The responses of the letters are awaited. In view of the same no interest under the act has neither been demanded by anyone nor has been provided.

10. Capital reserve represents the amount of principal waiver by the bank and financial institutions.

11. The outstanding balances of Debtors, Creditors and Loans & Advances (taken and given), balances with various statutory / fiscal authorities (assets & Liabilities) i.e. excise deposits / balances, VAT / Sales Tax dues, TDS / subject to confirmation, reconciliation and consequent adjustments, if any. The difference as may be noticed on reconciliation will be duly accounted for on completion thereof. In the opinion of the Management the ultimate difference will not be material.

12. Previous period figure have been regrouped and rearranged/recast wherever necessary. Figure in brackets related to previous year. All amounts appears in this schedule are rupees in lacs.

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Mar 31, 2010

1) Sales include Garments (inclusive of transportation) Rs.171.23 Lacs (Rs 35.69 Lacs).

2) Sales are stated at gross value inclusive of taxes and Freight.

3) As per the latest Audited Balance Sheet of M/S Sachit Plastics Private Limited as on 31.03.2009, there was a negative net worth of Rs.0.88 Lacs and the value of total assets was Rs. 5.82 Lacs. The amount outstanding in the books of the company Rs. 111.43 Lacs being inter corporate deposit given to the said company. Hence considering the financial statement of the said company and the amount outstanding, the probability of recovery is megre. And as such it is decided by the management to provide for the entire amount as bad and doubtful debts and accordingly, reflected in the financial statement of the Company. However the suit for recovering the same is pending before the Honble Trial Court at Aurangabad.

4) Contingent Liabilities:

a. Claims not acknowledged as debts are on account of a suit filed against the company by M/s Food Fats and Fertilizers Ltd. on behalf of Apte Organic Chemicals Pvt. Ltd. in Mumbai High Court for the recovery of Rs.2.67 Lacs (Rs.2.67 Lacs). The company is contesting the same. The BIFR have ordered for repayment subject to withdrawl of suit.

b. Guarantee given by the Company for sales tax deferment dues of the resulting Company Machhar Infrastructure Limited as per the sanctioned scheme ordered by BIFR RS. 399.36 Lacs (Rs. 367.50 Lacs).

c. Bonds executed by the company in favour of Commissioner, Central Excise and Customs, Government of India for import of capital goods under the Export Promotion Capital Goods Scheme of the Government of India for import of capital goods Rs. 572.28 Lacs, for export obligations to that extent to be completed.

d. In respect of demand raised by Sales Tax authority for Rs.1.52 lacs for the FY 2004-2005 on assessment for which the company have made appropriate representation for withdrawal of the demand to the department.

e. In respect of fiscal liabilities that may arise on account of non-observance of provisions of various fiscal statues, Companies Act and other related laws and interest chargeable on demands raised and not paid if any, amount is not ascertainable.

f. Estimated amount of contract remaining to be executed net of advances on capital account and not provided for Rs.74.62 Lacs (Rs.340.98 Lacs).

5) The outstanding balances of Debtors, Creditors and Loans & Advances (taken and given), excise deposits / balances, VAT / Sales Tax dues are subject to confirmation, reconciliation and consequent adjustments, if any. The difference as may be noticed on reconciliation will be duly accounted for on completion thereof. In the opinion of the Management the ultimate difference will not be material.

6. In the previous year the Company had written down the value of plant and machinery of co-extruded tubes division at Pharola by Rs. 134.09 Lacs being the difference between the realizable values which is higher than the value in use. The amount is disclosed in the profit and loss account under Impairment of assets. The value in use discounted at 11%.

7. Certain statutory requirements and records are in the process of their compilation/up-dation

8. During the year manufacturing activities at the plants of the company situated at ChikaKhana Aurangabad and Nandrabad Dist. Aurangabad were remained suspended. However, depreciation of all above divisions is charged amounting to Rs.13.89 Lacs.

9. Deferred Income Taxes:

a. The company is having carried forward losses amounting to Rs. 887.88 Lacs (Previous year Rs. 721.45 Lacs) as per books of accounts and also as per the Income tax act 1961, which is equivalent or more than book loss.

b. In view of the carried forward losses / unabsorbed depreciation in respect of past years both as per books and as per income tax, the company may not have the taxable income in the near future and hence, cumulative net deferred tax assets after deducting deferred tax liabilities have not been recognized by the company on prudence basis in accordance with the AS-22 issued by the ICAI. Similarly, net deferred tax asset for the current year have also not been recognized on prudence basis.

10. The Company is in process to identify the names of the Companies,linns and parties etc on which Micro, Small and Medium enterprises Act2006 is applicable and accordingly letters to all of the creditors, suppliers and service providers have been posted by the Company. The responses of the letters are awaited. In view of the same no interest under the act has neither been demanded by anyone nor has been provided.

11. Capital reserve represent the amount of principle waiver by the banks and financial institutions.

12. Other receipts include Rs.3.45 lacs being difference of sale value of mould Rs.14 lacs over its purchase value Rs.10.55 lacs made during the year.

13. Previous period figure have been regrouped and rearranged/recast wherever necessary. Figure in brackets related to previous year. All amounts appeared in this schedules are in Rs. Lacs.

14. The amounts shown in Balance sheet, Profit & Loss account and Notes to the accounts are not strictly comparable with previous year due to demerger of the company in the previous year as the turnover and expenses of resulting company up to 30.09.2008 are included in the financial statements.