అకౌంట్స్ గమనికలుRishiroop Ltd.

2.15 Provisions :

Provisions are recognized 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 recognized 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 recognized as an asset if it is virtually certain that reimbursement
will be received and the amount of the receivable can be measured reliably.

2.16 Income Taxes :

Income tax expenses comprise current tax and deferred tax charge or credit.

Current Tax is measured on the basis of estimated taxable income for the current accounting period
in accordance with the applicable tax rates and the provisions of the Income-tax, 1961 and other
applicable tax laws.

Deferred tax is provided, on all temporary differences at the reporting date between the tax bases
of assets and liabilities and their carrying amounts for financial reporting purposes. Deferred tax
assets and liabilities are measured at tax rates that are expected to be applied to the temporary
differences when they reverse, based on the laws that have been enacted or substantively enacted at
the reporting date. Tax relating to items recognized directly in equity or OCI is recognized in equity or
OCI and not in the statement of Profit and Loss. MAT Credits are in the form of unused tax credits that
are carried forward by the Company for a specified period of time, hence it is grouped with deferred
Tax asset.

Deferred tax assets and liabilities are offset if there is a legally enforceable right to offset current
tax liabilities and assets, and they relate to income taxes levied by the same tax authority, but they
intend to settle current tax liabilities and assets on a net basis or their tax assets and liabilities will
be realized simultaneously.

A deferred tax asset is recognized to the extent that it is probable that future taxable profits will be
available against which the temporary difference can be utilized. Deferred tax assets are reviewed at
each reporting date and are reduced to the extent that it is no longer probable.

2.17 Earnings Per Share :

The basic Earnings Per Share (“EPS”) is computed by dividing the net profit / (loss) after tax for
the year attributable to the Equity shareholders, by the weighted average number of equity shares
outstanding during the year.

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

2.18 Critical Accounting Judgements and Key Sources of Estimation Unertainty :

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

2.18.1 Critical judgments in applying accounting policies

In the process of applying the Company’s accounting policies, management has made the following
judgments, which have the most significant effect on the amounts recognized in the financial
statements.

2.18.2 Key assumptions

The key assumptions concerning the future and other key sources of estimation uncertainty at the
reporting date, that have a significant risk of causing a material adjustment to the carrying amount
of assets and liabilities within the next financial year, are described below. The Company based its
assumptions and estimates on parameters available when the financial statements were prepared.
existing circumstances and assumptions about future developments, however, may change due to
market changes or circumstances arising that are beyond the control of the Company. Such changes
are reflected in the assumptions when they occur.

2.18.3 Useful Lives of Property, Plant and Equipment

The Company uses its technical expertise along with historical and industry trends for determining
the economic life of an asset / component of an asset. The useful lives are reviewed by management
periodically and revised, if appropriate. In case of a revision, the unamortized depreciable amount is
charged over the remaining useful life of the assets.

2.18.4 Fair value measurement of financial instruments

Fair value of financial assets and liabilities is normally determined by references to the transaction
price. If the fair value is not reliably determinable, the company determines the fair value using
valuation techniques that are appropriate in the circumtances and for which sufficient data are
available, maximising the use of relevant observable inputs and minimising the use of unobservable
inputs.

2.18.5 Defined benefit plans

The cost of the defined benefit gratuity plan and other post - employment medical 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 he 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.

13.4 Buy Back of Equity Shares:

During the financial year ended 31st March, 2022, the Company had bought back 5,37,685 fully paid-
up equity shares of face value of '' 10 each, constituting up to 6.60% of the issued, subscribed and
paid-up Equity Share Capital of the Company as on March 31, 2021. The Buy Back was undertaken on
a proportionate basis, from the fully paid-up Equity Shareholder(s) / beneficial owner(s) of the Equity
Shares of the Company, by way of a Tender Offer for cash at a price of '' 125/- (Rupees One Hundred
Twenty Five only) per Equity Share for an aggregate amount up to '' 672.11/- excluding transaction
cost(s) and in accordance with the provisions of Companies Act, 2013 and SEBI (Buy-Back of Securities)
Regulations, 2018. The Buy Back offer opened on October 5, 2021 and closed on October 27, 2021. The Buy
Back size was about 9.67% of the aggregate paid-up equity capital and free reserves of the Company as
per the standalone financial statements of the Company for the financial year ended March 31, 2021. The
shares accepted under the Buy Back were extinguished in compliance with the provisions of Regulation
11 of SEBI (Buy-back of Securities) Regulations, 2018 and total issued capital was thus, then reduced
to 91,63,603 equity shares of '' 10/- and the premium on buy-back of '' 618.34/- was adjusted against
Securities Premium Account.

Employee Benefits

The Company has a defined benefit plan Every employee who has completed five year or more of service
gets a gratuity on departure at 15 days salary ( last drawn salary) for each completed year of service. The
scheme is funded with an insurance company in the form of a qualifying insurance policy. The Company
has a defined unfunded obligation for leave encashment. Generally the leave encashment is paid to
employees as and when claimed.

27.1 On November 21, 2025, the Government of India notified provisions of the Code on Wages, 2019, the
Industrial Relations Code, 2020, the Code on Social Security, 2020, and the Occupational Safety, Health
and Working Conditions Code, 2020 (Labour Codes), which consolidate twenty-nine existing labour laws
into a unified framework governing employee benefits during employment and post-employment.

The Labour Codes, amongst other things, introduce changes including a uniform definition of wages
and enhanced benefits relating to leave. The Company has assessed the financial implications of these
changes, which has resulted in an increase in gratuity & leave liability arising out of past service cost by
'' 12.01 lakhs.

The Company continues to monitor developments pertaining to the Labour Codes and will evaluate the
impact, if any, on the measurement of liabilities pertaining to employee benefits.

39 DERIVATIVE INSTRUMENTS

The Company enters into forward contracts to offset foreign currency risks arising from the amounts
denominated in currencies other than the Indian Rupee. The counter party in such forward contracts is a
bank. These contracts are entered to hedge the foreign currency risks on the firm commitments.

Details of forward contracts outstanding as at the year end is as under.

41 RISK MANAGEMENT

41.1 Financial Risk Managements

In the course of its business, the Company is exposed to a number of financial risks: Liquidity Risk, Credit
Risk, Market Risk. This note present the Company’s objective, policies and processes for managing its
financial risk and capital.

41.2 Liquidity Risk

Liquidity Risk refers to risk that the Company may encounter difficulties in meeting its obligations
associated with financial liabilities that are settled in cash or other financial assets. The Company
regularly monitors rolling forcast to ensure that sufficient liquidity is maintained on and ongoing basis
to meet operational needs. The Company manages the liquidity risk by planning the investments in a
manner such that the desired quantam of funds could be made available to meet any of the business
requirments within a resonable period of time. In addition the Company also maintains flexibility in
arranging the funds by mantaining commited credit lines with various banks to meet the obligations.

41.3 Credit Risk

Credit Risk refers to risk of financial loss to the Company if a customer or counter- party fails to meet
its contractual obligations. The Company has following categories of financial assets that are subject to
credit risk evaluation;

41.3.1 Trade Receivables

Credit risk arising from trade receivable is managed in accordance with the Company’s established
policies with regard to credit limits, control and approval procedures..

The Following table gives details in respect of percentage of revenues generated from top five customers.

41.3.2 Other financial assets

Other financial assets include employee loans, security deposits etc. Based on historical experience and
credit profiles of counterparties, the Company does not expect any significant risk of default.

The Company’s maximum exposure to credit risk for each of the above categories of fiancial assets in
their carrying values at the reporting dates.

41.4 Market Risk
41.4.1 Interest Rate Risk

Interest rate risk refers to risk that the fair value of future cash flows of a financial instrument may
fluctuate because of changes in market interest rates. Also, there are no significant borrowings as at the
balance sheet date.

41.4.2 Price Risk

Price Risk refers to risk that the fair value of a financial instrument may fluctuate because of the change
in the market price. The Company is exposed to the price risk mainly from investment in mutual funds
and investment in equity instruments.

41.4.3 Foreign Currency Risk

Foreign currency risk refers to risk that the fair value of future cash flows of an exposure may fluctuate
due to change in the foreign exchange rates. The Company is exposed to foreign currency risk arising
out of transactions in foreign currency. Foreign exchange risk are managed in accordance with the
Company’s established policy for foreign exchange management. The Company enters in to forward
contracts as per the hedging policy to hedge against its foreign currency exposures. The impact of
strengthening / weakening of foreign currencies on the outstanding exposures remaining unhedged at
the year-end is not significant.

42 PAYMENT OF DIVIDEND

42.1 Dividend paid during the year

Dividends paid during the year ended March 31, 2026 include an amount of '' 1.50 per equity share
towards final dividend for the year ended March 31, 2025. Dividends paid during the year ended March
31, 2025 include an amount of '' 1.80 per equity share towards final dividend for the year ended March
31, 2024.

42.2 Dividend

Dividends declared by the Company are based on the profit available for distribution. The Board of
Directors have proposed a final dividend of '' 1.50 (Previous year '' 1.50) per equity share amounting to
'' 137.45 Lakhs for the year 2025-26 ( Previous year '' 137.45 Lakhs ) after the balance sheet date,
subject to the approval of shareholders at the ensuing Annual General Meeting of the Company and
therefore, the proposed final dividend has not been recognised as the liability as at the balance sheet
date in line with Ind-AS 10 on ‘Events after the reporting period’.

(b) Fair Value Hierarchy

The fair value hierarchy is based on inputs to valution techniqes that are used to measure fair value that
are either observable or unobservable and consist of the following three levels :

Level 1 - Inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities.

Level 2 - Inputs are other than quoted prices included within level 1 that are observable for the asset or
liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices)

Level 3 - Inputs are not based on observable market data (unobservable inputs). Fair value are determined
in whole or in part using a valuation model based on assumption that are neither supported by prices from
observable current market transaction in the same instrument nor are they based on available market
data.

45 CAPITAL COMMITMENT

The estimated amount of contracts remaining to be executed on capital account not provided for as on the
date of the Balance Sheet is '' NIL (P.Y. '' NIL).

46 DETAILS OF BENAMI PROPERTY HELD

No proceedings have been initiated or are pending against the Company for holding any benami property
under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and rules made thereunder.

47 BORROWINGS FROM BANKS FOR CREDIT FACILITY

There is no material or significant deviation in the quarterly returns or statements of current assets filed
by the Company with the banks or financial institutions vis-a-vis the books of accounts for the year. The
deviations, if any, have been intimated by the Company to the banks or financial institutions, wherever
necessary.

48 WILFUL DEFAULTER

The Company is not declared wilful defaulter by any bank or financial institution or other lender during the
year.

49 RELATIONSHIP WITH STRUCK OFF COMPANIES

The Company has not entered into any transactions with the companies struck off under Section 248 of the
Companies Act, 2013 or Section 560 of Companies Act, 1956 during the year.

50 REGISTRATION OF CHARGES OR SATISFACTION WITH REGISTRAR OF COMPANIES (ROC)

During the year, there are no instances of any charges or satisfaction which are pending for registration with
ROC beyond the statutory period.

51 COMPLIANCE WITH NUMBER OF LAYERS OF COMPANIES

The Company is in compliance with the number of layers prescribed under clause (87) of Section 2 of the
Companies Act, 2013 read with the Companies (Restriction on number of Layers) Rules, 2017.

52 COMPLIANCE WITH APPROVED SCHEME(S) OF ARRANGEMENTS

There is no Scheme of Arrangement approved by the Competent Authority in terms of Sections 230 to 237 of
the Companies Act, 2013 during the year and hence, no disclosures are required to be made by the Company
in the books of account of the Company during the year.

53 UTILISATION OF BORROWED FUNDS AND SHARE PREMIUM RULE 11(E)

No funds (which are material either individually or in the aggregate) have been advanced or loaned or
invested (either from borrowed funds or share premium or any other sources or kind of funds) by the
Company to or in any other person or entity, including foreign entity (“Intermediaries”).

No funds (which are material either individually or in the aggregate) have been received by the Company
from any person or entity, including foreign entity (“Funding Parties”).

54 The Company does not have any transactions not recorded in books of accounts that has been surrendered
or disclosed as income during the year and previous year in the tax assessments under the Income Tax Act,
1961.

55 The Company has not traded or invested in any crypto currency or virtual currency during the year and
previous year.

56 There has been no fraud by the Company or on the Company during the year and previous year.

57 ROUNDING OF AMOUNTS

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

58 Previous year’s figures have been regrouped / reclassified / restated, wherever necessary to correspond with
the current year’s classification / disclosure.

13.2 Rights, Preferences and restrictions attached to each class of shares :

Equity Shares: The company has one class of equity shares having a par value of '' 10/- per share. Each shareholder is eligible for one vote per share held.

13.4 Buy Back of Equity Shares:

The Company had bought back 5,37,685 fully paid-up equity shares of face value of '' 10 each, constituting up to 6.60% of the issued, subscribed and paid-up Equity Share Capital of the Company as on March 31, 2021. The Buy Back was undertaken on a proportionate basis, from the fully paid-up Equity Shareholder(s) / beneficial owner(s) of the Equity Shares of the Company, by way of a Tender Offer for cash at a price of '' 125/- (Rupees One Hundred Twenty Five only) per Equity Share for an aggregate amount up to '' 672.11 Lakhs excluding transaction cost(s) and in accordance with the provisions of Companies Act, 2013 and SEBI (Buy-Back of Securities) Regulations, 2018. The Buy Back offer opened on October 5, 2021 and closed on October 27, 2021. The Buy Back size was about 9.67% of the aggregate paid-up equity capital and free reserves of the Company as per the standalone financial statements of the Company for the financial year ended March 31, 2021. The shares accepted under the Buy Back were extinguished in compliance with the provisions of Regulation 11 of SEBI (Buy-back of Securities) Regulations, 2018 and total issued capital was thus, then reduced to 91,63,603 equity shares of '' 10/- and the premium on buy-back of '' 618.34 Lakhs was adjusted against Securities Premium Account.

39 DERIVATIVE INSTRUMENTS

The Company enters into forward contracts to offset foreign currency risks arising from the amounts denominated in currencies other than the Indian Rupee. The counter party in such forward contracts is a bank. These contracts are entered to hedge the foreign

41 RISK MANAGEMENT

41.1 Financial Risk Managements

In the course of its business, the Company is exposed to a number of financial risks: Liquidity Risk, Credit Risk, Market Risk. This note present the Company’s objective, policies and processes for managing its financial risk and capital.

41.2 Liquidity Risk

Liquidity Risk refers to risk that the Company may encounter difficulties in meeting its obligations associated with financial liabilities that are settled in cash or other financial assets. The Company regularly monitors rolling forcast to ensure that sufficient liquidity is maintained on and ongoing basis to meet operational needs. The Company manages the liquidity risk by planning the investments in a manner such that the desired quantam of funds could be made available to meet any of the business requirments within a resonable period of time. In addition the Company also maintains flexibility in arranging the funds by mantaining commited credit lines with various banks to meet the obligations.

41.3 Credit Risk

Credit Risk refers to risk of financial loss to the Company if a customer or counter- party fails to meet its contractual obligations. The Company has following categories of financial assets that are subject to credit risk evaluation;

41.3.1 Trade Receivables

Credit risk arising from trade receivable is managed in accordance with the Company’s established policies with regard to credit limits, control and approval procedures.

41.3.2 Other financial assets

Other financial assets include employee loans, security deposits etc. Based on historical experience and credit profiles of counterparties, the Company does not expect any significant risk of default.

The Company’s maximum exposure to credit risk for each of the above categories of fiancial assets in their carrying values at the reporting dates.

41.4 Market Risk

41.4.1 Interest Rate Risk

Interest rate risk refers to risk that the fair value of future cash flows of a financial instrument may fluctuate because of changes in market interest rates. Also, there are no significant borrowings as at the balance sheet date.

41.4.2 Price Risk

Price Risk refers to risk that the fair value of a financial instrument may fluctuate because of the change in the market price. The Company is exposed to the price risk mainly from investment in mutual funds and investment in equity instruments..

41.4.3 Foreign Currency Risk

Foreign currency risk refers to risk that the fair value of future cash flows of an exposure may fluctuate due to change in the foreign exchange rates. The Company is exposed to foreign currency risk arising out of transactions in foreign currency. Foreign exchange risk are managed in accordance with the Company’s established policy for foreign exchange management. The Company enters in to forward contracts as per the hedging policy to hedge against its foreign currency exposures. The impact of strengthening /weakening of foreign currencies on the outstanding exposures remaining unhedged at the year-end is not significant.

42 PAYMENT OF DIVIDEND

42.1 Dividend paid during the year

Dividends paid during the year ended March 31, 2025 include an amount of '' 1.80 per equity share towards final dividend for the year ended March 31, 2024. Dividends paid during the year ended March 31, 2024 include an amount of '' 1.50 per equity share towards final dividend for the year ended March 31, 2023.

42.2 Dividend

Dividends declared by the Company are based on the profit available for distribution. The Board of Directors have proposed a final dividend of '' 1.50 (Previous year '' 1.80) per equity share amounting to '' 137.45 Lakhs for the year 2024-25 ( Previous year '' 164.94 Lakhs ) after the balance sheet date, subject to the approval of shareholders at the ensuing Annual General Meeting of the Company and therefore, the proposed final dividend has not been recognised as the liability as at the balance sheet date in line with Ind-AS 10 on ‘Events after the reporting period’.

(b) Fair Value Hierarchy

The fair value hierarchy is based on inputs to valution techniqes that are used to measure fair value that are either observable or unobservable and consist of the following three levels :

Level 1 - Inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities.

Level 2 - Inputs are other than quoted prices included within level 1 that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices)

Level 3 - Inputs are not based on observable market data (unobservable inputs). Fair value are determined in whole or in part using a valuation model based on assumption that are neither supported by prices from observable current market transaction in the same instrument nor are they based on available market data.

The Investments included in leval 3 of fair value heirachy have been valued using the cost approach to arrive at their fair value. The cost of unquoted investments approximate the fair value because there is a wide range of possible fair value measurements and the cost represents estimate of fair value within the range.

45 CAPITAL COMMITMENT

The estimated amount of contracts remaining to be executed on capital account not provided for as on the date of the Balance Sheet is '' NIL (P.Y. '' NIL).

46 DETAILS OF BENAMI PROPERTY HELD

No proceedings have been initiated or are pending against the Company for holding any benami property under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and rules made thereunder.

47 BORROWINGS FROM BANKS FOR CREDIT FACILITY

There is no material or significant deviation in the quarterly returns or statements of current assets filed by the Company with the banks or financial institutions vis-a-vis the books of accounts for the year. The deviations, if any, have been intimated by the Company to the banks or financial institutions, wherever necessary.

48 WILFUL DEFAULTER

The Company is not declared wilful defaulter by any bank or financial institution or other lender during the year.

49 RELATIONSHIP WITH STRUCK OFF COMPANIES

The Company has not entered into any transactions with the companies struck off under Section 248 of the Companies Act, 2013 or Section 560 of Companies Act, 1956 during the year.

50 REGISTRATION OF CHARGES OR SATISFACTION WITH REGISTRAR OF COMPANIES (ROC)

During the year, there are no instances of any charges or satisfaction which are pending for registration with ROC beyond the statutory period.

51 COMPLIANCE WITH NUMBER OF LAYERS OF COMPANIES

The Company is in compliance with the number of layers prescribed under clause (87) of Section 2 of the Companies Act, 2013 read with the Companies (Restriction on number of Layers) Rules, 2017.

52 COMPLIANCE WITH APPROVED SCHEME(S) OF ARRANGEMENTS

There is no Scheme of Arrangement approved by the Competent Authority in terms of Sections 230 to 237 of the Companies Act, 2013 during the year and hence, no disclosures are required to be made by the Company in the books of account of the Company during the year.

53 UTILISATION OF BORROWED FUNDS AND SHARE PREMIUM RULE 11(E)

No funds (which are material either individually or in the aggregate) have been advanced or loaned or invested (either from borrowed funds or share premium or any other sources or kind of funds) by the Company to or in any other person or entity, including foreign entity (“Intermediaries”).

No funds (which are material either individually or in the aggregate) have been received by the Company from any person or entity, including foreign entity (“Funding Parties”).

54 The Company does not have any transactions not recorded in books of accounts that has been surrendered or disclosed as income during the year and previous year in the tax assessments under the Income Tax Act, 1961.

55 The Company has not traded or invested in any crypto currency or virtual currency during the year and previous year.

56 There has been no fraud by the Company or on the Company during the year and previous year.

57 ROUNDING OF AMOUNTS

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

58 Previous year''s figures have been regrouped / reclassified / restated, wherever necessary to correspond with the current year''s classification / disclosure.

The Company does not have any outstanding debt as at the end of the year. Hence Debt : Equity Ratio & Debt Service Coverage Ratio have not been computed for the current as well as the previous year.

13.2 Rights, Preferences and restrictions attached to each class of shares :

Equity Shares: The company has one class of equity shares having a par value of '' 10/- per share. Each shareholder is eligible for one vote per share held.

Disclosure under Micro, Small and Medium Enterprises Development Act, 2006 :

There are no Micro, Small and Medium Enterprises, as defined in the Micro, Small and Medium Enterprises Development Act, 2006 to whom the Company owes dues on account of principal amount together with interest and accordingly no additional disclosures have been made. The information regarding Micro, Small & Medium Enterprises has been determined to the extent such parties have been identified on the basis of information available with the Company. This has been relied upon by the auditors.

27.1 Employee Benefits

The Company has a defined benefit plan every employee who has completed five year or more of service gets a gratuity on departure at 15 days salary (last drawn salary) for each completed year of service. The scheme is funded with an insurance company in the form of a qualifying insurance policy. The Company has a defined unfunded obligation for leave encashment. Generally the leave encashment is paid to employees as and when claimed.

38 SEGMENT INFORMATION

38.1 Primary Segment

The Company is engaged in the one business segment i.e. Polymers & Compounds and it is primary segment.

38.2 Secondary Segment

The Company has two geographical segments based upon location of its customers with and ouside India.

39 DERIVATIVE INSTRUMENTS

The Company enters into forward contracts to offset foreign currency risks arising from the amounts denominated in currencies other than the Indian Rupee. The counter party in such forward contracts is a bank. These contracts are entered to hedge the foreign currency risks on the firm commitments.

Details of forward contracts outstanding as at the year end is as under.

41 RISK MANAGEMENT

41.1 Financial Risk Managements

In the course of its business, the Company is exposed to a number of financial risks: Liquidity Risk, Credit Risk, Market Risk. This note present the Company''s objective, policies and processes for managing its financial risk and capital.

41.2 Liquidity Risk

Liquidity Risk refers to risk that the Company may encounter difficulties in meeting its obligations associated with financial liabilities that are settled in cash or other financial assets. The Company regularly monitors rolling forcast to ensure that sufficient liquidity is maintained on and ongoing basis to meet operational needs. The Company manages the liquidity risk by planning the investments in a manner such that the desired quantam of funds could be made available to meet any of the business requirments within a resonable period of time. In addition the Company also maintains flexibility in arranging the funds by mantaining commited credit lines with various banks to meet the obligations.

41.3 Credit Risk

Credit Risk refers to risk of financial loss to the Company if a customer or counter- party fails to meet its contractual obligations. The Company has following categories of financial assets that are subject to credit risk evaluation;

41.3.1 Trade Receivables

Credit risk arising from trade receivable is managed in accordance with the Company''s established policies with regard to credit limits, control and approval procedures.

The Company establishes an allowance for impairment that represents fixed estimate of expected lossess in respect of trade and other receivables. The maximum exposure to credit risk as at reporting date is primarily from trade receivables amounting to '' 1,062.74 Lakhs ( P.Y. '' 1,277.78 Lakhs ).

41.3.2 Other financial assets

Other financial assets include employee loans, security deposits etc. Based on historical experience and credit profiles of counterparties, the Company does not expect any significant risk of default.

The Company''s maximum exposure to credit risk for each of the above categories of financial assets in their carrying values at the reporting dates.

41.4 Market Risk

41.4.1 Interest Rate Risk

Interest rate risk refers to risk that the fair value of future cash flows of a financial instrument may fluctuate because of changes in market interest rates. Also, there are no significant borrowings as at the balance sheet date.

41.4.2 Price Risk

Price Risk refers to risk that the fair value of a financial instrument may fluctuate because of the change in the market price. The Company is exposed to the price risk mainly from investment in mutual funds and investment in equity instruments.

41.4.3 Foreign Currency Risk

Foreign currency risk refers to risk that the fair value of future cash flows of an exposure may fluctuate due to change in the foreign exchange rates. The Company is exposed to foreign currency risk arising out of transactions in foreign currency. Foreign exchange risk are managed in accordance with the Company''s established policy for foreign exchange management. The Company enters in to forward contracts as per the hedging policy to hedge against its foreign currency exposures. The impact of strengtheninig /weakening of foreign currencies on the outstanding exposures remaining unhedged at the year-end is not significant.

42 PAYMENT OF DIVIDEND

42.1 Dividend paid during the year

Dividends paid during the year ended March 31, 2024 include an amount of '' 1.50 per equity share towards final dividend for the year ended March 31, 2023. Dividends paid during the year ended March 31, 2023 include an amount of '' 1.50 per equity share towards final dividend for the year ended March 31, 2022.

42.2 Dividend

Dividends declared by the Company are based on the profit available for distribution. The Board of Directors have proposed a final dividend of '' 1.80 (Previous year '' 1.50) per equity share amounting to '' 164.95 Lakhs for the year 2023-24 ( Previous year '' 137.45 Lakhs ) after the balance sheet date, subject to the approval of shareholders at the ensuing Annual General Meeting of the Company and therefore, the proposed final dividend has not been recognised as the liability as at the balance sheet date in line with Ind AS 10 on ''Events after the reporting period''.

(b) Fair Value Hierarchy

The fair value hierarchy is based on inputs to valution techniqes that are used to measure fair value that are either observable or unobservable and consist of the following three levels :

Level 1 - Inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities.

Level 2 - Inputs are other than quoted prices included within level 1 that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices)

Level 3 - Inputs are not based on observable market data (unobservable inputs). Fair value are determined in whole or in part using a valuation model based on assumption that are neither supported by prices from observable current market transaction in the same instrument nor are they based on available market data.

The Investments included in leval 3 of fair value heirachy have been valued using the cost approach to arrive at their fair value. The cost of unquoted investments approximate the fair value because there is a wide range of possible fair value measurements and the cost represents estimate of fair value within the range.

45 CAPITAL COMMITMENT

The estimated amount of contracts remaining to be executed on capital account not provided for as on the date of the Balance Sheet is '' NIL (P.Y. '' NIL).

46 DETAILS OF BENAMI PROPERTY HELD

No proceedings have been initiated or are pending against the Company for holding any benami property under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and rules made thereunder.

47 BORROWINGS FROM BANKS FOR CREDIT FACILITY

There is no material or significant deviation in the quarterly returns or statements of current assets filed by the Company with the banks or financial institutions vis-a-vis the books of accounts for the year. The deviations, if any, have been intimated by the Company to the banks or financial institutions, wherever necessary.

48 WILFUL DEFAULTER

The Company is not declared wilful defaulter by any bank or financial institution or other lender during the year.

49 RELATIONSHIP WITH STRUCK OFF COMPANIES

The Company has not entered into any transactions with the companies struck off under Section 248 of the Companies Act, 2013 or Section 560 of Companies Act, 1956 during the year.

50 REGISTRATION OF CHARGES OR SATISFACTION WITH REGISTRAR OF COMPANIES (ROC)

During the year, there are no instances of any charges or satisfaction which are pending for registration with ROC beyond the statutory period.

51 COMPLIANCE WITH NUMBER OF LAYERS OF COMPANIES

The Company is in compliance with the number of layers prescribed under clause (87) of Section 2 of the Companies Act, 2013 read with the Companies (Restriction on number of Layers) Rules, 2017.

52 COMPLIANCE WITH APPROVED SCHEME(S) OF ARRANGEMENTS

There is no Scheme of Arrangement approved by the Competent Authority in terms of Sections 230 to 237 of the Companies Act, 2013 during the year and hence, no disclosures are required to be made by the Company in the books of account of the Company during the year.

53 UTILISATION OF BORROWED FUNDS AND SHARE PREMIUM RULE 11(E)

No funds (which are material either individually or in the aggregate) have been advanced or loaned or invested (either from borrowed funds or share premium or any other sources or kind of funds) by the Company to or in any other person or entity, including foreign entity ("Intermediaries").

No funds (which are material either individually or in the aggregate) have been received by the Company from any person or entity, including foreign entity ("Funding Parties").

54 ROUNDING OF AMOUNTS

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

55 The Company does not have any transactions not recorded in books of accounts that has been surrendered or disclosed as income during the year and previous year in the tax assessments under the Income Tax Act, 1961.

56 The Company has not traded or invested in any crypto currency or virtual currency during the year and previous year.

57 There has been no fraud by the Company or on the Company during the year and previous year.

58 Previous year''s figures have been regrouped / reclassified / restated, wherever necessary to correspond with the current year''s classification / disclosure.

Note :

During the year, the Company has classified leasehold land & building thereon situated at Plot no. 5807/08 GIDC, Ankleshwar, Gujarat - 393002 as “Non Current Assets held for Sale” in accordance with the provisions of IND-AS 105, “Non Current Assets Held for sale and Discontinued Operations” as the Board of Directors intend to dispose off the said assets within a period of 12 months. Moreover a plan to locate a buyer and complete the sale has already been initiated by the Company.

The assets classified as held for sale are stated at carrying cost, which is less than the fair value less the expected selling costs.

1.1 Rights, Preferences and restrictions attached to each class of shares :

Equity Shares: The company has one class of equity shares having a par value of Rs. 10/- per share. Each shareholder is eligible for one vote per share held.

Disclosure under Micro, Small and Medium Enterises Development Act, 2006.

There are no Micro, Small and Medium Enterprises, as defined in the Micro,Small and Medium Enterprises Development Act,2006 to whom the Company owes dues on account of principal amount together with interest and accordingly no additional disclosures have been made. The information regarding Micro, Small & Medium Enterprises has been determined to the extent such parties have been identified on the basis of information available with the Company.

2.1 Employee Benefits

Defined Contribution Plans

Contribution towards provident fund & employee’s state insurance corporation Rs. 18,92,627/- (Previous Year Rs. 17,68,142/-) is recognized as an expense and included in Note 26, ‘Employee Benefit Expenses’, in the Statement of Profit & Loss.

Defined Benefits Plans

The Company has a defined benefit plan Every employee who has completed five year or more of service gets a gratuity on departure at 15 days salary (last drawn salary) for each completed year of service. The scheme is funded with an insurance company in the form of a qualifying insurance policy. The Company has a defined unfunded obligation for leave encashment. Generally the leave encashment is paid to employees as and when claimed.

The following tables summarise :

3 RELATED PARTY INFORMATION :

As per Ind AS-24 issued by the Institute of Chartered Accountants of India, the Company’s related parties are as under

1 (a) Directors and their relatives

1. Arvind Kapoor Chairman

2. Aditya Kapoor Managing Director

3. Atul Shah Director

4. Hemant D. Vakil Independent Director

5. Dilip Shah Independent Director

6. Vijyatta Jaiswal Independent Director

7. Gouri A. Kapoor Relative of Director

8. Shradha Khanna Relative of Director

9. Richa Chadha Relative of Director

10. Radhika Kapoor Relative of Director

(b) Key Management Personnel

1. Suresh H. Khilnani. Chief Financial Officer

2. Agnelo Fernandes. Company Secretary

(c) Enterprises under significant influence

1. Rishiroop Polymers Pvt Ltd., 5. Rishiroop Holding Pvt Ltd

2. Devi Organics Pvt Ltd 6. Rishichem Mideast Ltd

3. Rishichem Distributors Pvt Ltd 7. Raga Holdings

4. Rishiroop Investments & Trading Co. Pvt Ltd 8. Puneet Polymers

4 CSR Expenditure

As per Section 135 of the Companies Act, 2013, a CSR committee has been constituted by the Company. Pursuant to the company’s CSR policy, the CSR committee has identified a project at Nashik and duely authorized expenditure of Rs. 11,93,225/Other expenses include Rs. 10,87,350/- spent towards various schemes of Corporate Social Responsibility.

(a) Gross amount required to be spent by the company during the year: 11,93,225

(b) Amount spent during the year is: 10,87,350

5 LEASES

The company has taken office premise & warehouse under leave and licence agreement. The leave and licence agreement is generally renewable or cancellable at the option of the Company or the Lessor and do not contain stipulation for increase in lease rental. The lease payment on account of office premises is amounting to Rs. 17,22,720/- (P.Y. Rs. 17,87,325) & warehousing ‘ 39,938/- and is recognised in the statement of Profit and Loss.

Future commitments in respect of minimum lease payments payable for non cancellable operating leases entered in to by the Company.

6 SEGMENT INFORMATION

6.1 Primary Segment

The Company is engaged in the one business segment i.e. Polymers & Compounds and it is primary segment.

6.2 Secondary Segment

The Company has two geographical segments based upon location of its customers with and outside India.

6.3 The company has business operations only in India and does not hold any fixed / financial assets outside India.

7 DERIVATIVE INSTRUMENTS

The Company enters into forward contracts to offset foreign currency risks arising from the amounts denominated in currencies other than the Indian Rupee. The counter party in such forward contracts is a bank. These contracts are entered to hedge the foreign currency risks on the firm commitments.

Details of forward contract outstanding as at the year end.

8 Risk Management

8.1 Financial Risk Managements

In the course of its business, the Company is exposed to a number of financial risks:; Liquidity Risk, Credit Risk, Market Risk, etc. This note presents the Company’s objectives, policies and processes for managing its financial risks and capital.

8.2 Liquidity Risk

Liquidity Risk refers to risk that the Company may encounter difficulties in meeting its obligations associated with financial liabilities that are settled in cash or other financial assets. The Company regularly monitors rolling for cast to ensure that sufficient liquidity is maintained on and ongoing basis to meet operational needs. The Company manages the liquidity risk by planning the investments in a manner such that the desired quantam of funds could be made available to meet any of the business requirments within a resonable period of time. In addition the Company also maintains flexibility in arranging the funds by mantaining commited credit lines with various banks to meet the obligations.

8 .3 Credit Risk

Credit Risk refers to risk of financial loss to the Company if a customer or counter- party fails to meet its contractual obligations. The Company has following categories of financial assets that are subject to credit risk evaluation;

8.3.1 Trade receivable

Credit risk arising from trade receivable is managed in accordance with the Company’s established policies with regard to credit limits, control and approval procedures.

8.3.2 Other financial assets

Other financial assets include employee loans,security deposits etc. Based on historical experience and credit profiles of counterparties, the Company does not expect any significant risk of default.

The Company’s maximum exposure to credit risk for each of the above categories of financial assets in their carrying values at the reporting dates.

8 .4 Market Risk

8.4.1 Interest rate risk

Interest rate risk refers to risk that the fair value of future cash flows of a financial instrument may fluctuate because of changes in market interest rates. The company does not have significant borrowings as at the balance sheet date and accordingly impact of interest rate risk due to borrowing is insignificant.

8.4.2 Price Risk

Price Risk refers to risk that the fair value of a financial instrument may fluctuate because of the change in the market price. The Company is exposed to the price risk mainly from investment in mutual funds and investment in equity instruments.

The management deligently monitors the fluctuation in the price of the investments on regular basis to ensure that the company is not impacted by any significant decline in investments value.

8.4.3 Foreign currency risk

Foreign currency risk refers to risk that the fair value of future cash flows of an exposure may fluctuate due to change in the foreign exchange rates.

The Company is exposed to foreign currency risk arising out of transactions in foreign currency. Foreign exchange risk are managed in accordance with the Company’s established policy for foreign exchange management. The Company enters in to forward contracts as per the hedging policy to hedge against its foreign currency exposures. The impact of strengthening /weakening of foreign currencies on the outstanding exposures remaining unhedged at the year-end is not significant

9 Payment of Dividend

9.1 Dividend paid during the year

Final dividend at Rs. 1.20/- per quity share of Rs. 10/- each for the year 2017-2018 Rs. 1,16,41,545/- (excluding dividend distribution tax).

9.2 Proposed final dividend

The Board of Directors have recommended a final dividend of Rs. 1.20 (Previous year Rs. 1.20) per equity shares amounting to Rs. 1,16,41,545/- for the year 2018-2019 (Previous year Rs. 1,16,41,545/ ) after the balance sheet date. The same is subject to approval by the shareholders at ensuing Annual General Meeting of the Company and therefore proposed final dividend ( including dividend distribution tax) has not been recognised as the liability as at the balance sheet date in line with Ind AS 10 on ‘Events after the reporting period’.

(b) Fair Value Hierarchy

The fair value hierarchy is based on inputs to valuation techniques that are used to measure fair value that are either observable or unobservable and consist of the following three levels :

Level 1 - Inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities.

Level 2 - Inputs are other than quoted prices included within level 1 that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices)

Level 3 - Inputs are not based on observable market data (unobservable inputs). Fair value are determined in whole or in part using a valuation model based on assumption that are neither supported by prices from observable current market transaction in the same instrument nor are they based on available market data.

The Investments included in level 3 of fair value heirachy have been valued using the cost approach to arrive at their fair value. The cost of unquoted investments approximate the fair value because there is a wide range of possible fair value measurements and the cost represents estimate of fair value within the range.

10 Previous year figures have been re-grouped, re-cast and re-arranged wherever necessary.

36 CSR EXPENDITURE

In view of the Management as per Section 135 (1) of the Companies Act, 2013 read with sub rule (2) of Rule 3 of the Companies (Corporate Social Responsibility Policy) Rules, 2014 the Company is not covered by the provisions relating to CSR for the year under report.

(a) Gross amount required to be spent by the company during the year - Nil

(b) Amount spent during the year on account of balance of previous year -Nil

37 LEASES

The company has taken office premise under leave and licence agreement. The leave and license agreement is generally renewable or cancellable at the option of the Company or the Lessor and do not contain stipulation for increase in lease rental. The lease payment on account of office amounting to Rs, 17,87,325/-(P.Y. Rs, 19,79,704) is recognized in the statement of Profit and Loss.

Future commitments in respect of minimum lease payments payable for non-cancellable operating leases entered in to by the Company.

* Current Assets (Export Receivables)

38.3 The company has business operations only in India and does not hold any fixed / financial assets outside India.

38.4 Revenue from Major Customers

There is no single customer that accounts for more than 10% of the Company''s revenue.

39 DERIVATIVE INSTRUMENTS

The Company enters into forward contracts to offset foreign currency risks arising from the amounts denominated in currencies other than the Indian Rupee. The counter party in such forward contracts is a bank. These contracts are entered to hedge the foreign currency risks on the firm commitments.

Details of forward contract outstanding as at the year end.

41 DISCLOSURE UNDER MICRO, SMALL AND MEDIUM ENTERPRISES DEVELOPMENT ACT, 2006.

There are no Micro, Small and Medium Enterprises, as defined in the Micro,Small and Medium Enterprises Development Act,2006 to whom the Company owes dues on account of principal amount together with interest and accordingly no additional disclosures have been made. The information regarding Micro, Small

& Medium Enterprises has been determined to the extent such parties have been identified on the basis of information available with the Company. This has been relied upon by the auditors.

42 RISK MANAGEMENT

42.1 Financial Risk Managements

In the course of its business, the Company is exposed to a number of financial risks: Liquidity Risk, Credit Risk, Market Risk. This note present the Company''s objective, policies and processes for managing its financial risk and capital.

42.2 Liquidity Risk

Liquidity Risk refers to risk that the Company may encounter difficulties in meeting its obligations associated with financial liabilities that are settled in cash or other financial assets. The Company regularly monitors rolling forcast to ensure that sufficient liquidity is maintained on and ongoing basis to meet operational needs. The Company manages the liquidity risk by planning the investments in a manner such that the desired quantum of funds could be made available to meet any of the business requirements within a reasonable period of time. In addition the Company also maintains flexibility in arranging the funds by maintaining committed credit lines with various banks to meet the obligations.

42.3 Credit Risk

Credit Risk refers to risk of financial loss to the Company if a customer or counter- party fails to meet its contractual obligations. The Company has following categories of financial assets that are subject to credit risk evaluation;

42.4 Trade receivable

Credit risk arising from trade receivable is managed in accordance with the Company''s established policies with regard to credit limits, control and approval procedures.

42.5 Other financial assets

Other financial assets include employee loans, security deposits etc. Based on historical experience and credit profiles of counterparties, the Company does not expect any significant risk of default.

The Company''s maximum exposure to credit risk for each of the above categories of financial assets in their carrying values at the reporting dates.

42.6 Market Risk 42.6.1Interest rate risk

Interest rate risk refers to risk that the fair value of future cash flows of a financial instrument may fluctuate because of changes in market interest rates. Also, there are no significant borrowings as at the balance sheet date.

42.6.2Price Risk

Price Risk refers to risk that the fair value of a financial instrument may fluctuate because of the change in the market price. The Company is exposed to the price risk mainly from investment in mutual funds and investment in equity instruments.

42.6.3Foreign currency risk

Foreign currency risk refers to risk that the fair value of future cash flows of an exposure may fluctuate due to change in the foreign exchange rates. The Company is exposed to foreign currency risk arising out of transactions in foreign currency. Foreign exchange risk are managed in accordance with the Company''s established policy for foreign exchange management. The Company enters in to forward contracts as per the hedging policy to hedge against its foreign currency exposures. The impact of strengthening /weakening of foreign currencies on the outstanding exposures remaining unheeded at the year-end is not significant

42.6.4Foreign curreny exposure at the year end not hedged by derivative instruments.

43. PAYMENT OF DIVIDEND

43.1 Dividend paid during the year

Final dividend at '' 1/- per equity share of '' 10/- each for the year 2016-2017 '' 97,01,288/-(excluding dividend distribution tax).

43.2 Proposed final dividend

The Board of Directors have recommended a final dividend of '' 1.20 (Previous year '' 1.00) per equity shares amounting to '' 1,16,41,545/- for the year 2018 (Previous year '' 97,01,288/-) after the balance sheet date. The same is subject to approval by the shareholders at ensuing Annual General Meeting of the Company and therefore proposed final dividend (including dividend distribution tax) has not been recognized as the liability as at the balance sheet date in line with Ind AS 10 on ''Events after the reporting period''.

45 FIRST TIME ADOPTION - MANDATORY EXCEPTIONS AND OPTIONAL EXEMPTIONS:

45.1 Overall principle

The Company has prepared the opening balance sheet as per Ind AS as at 1st April 2016 (the transition date) by recognizing all the assets and liabilities whose recognition is required by Ind AS, not recognizing items of assets or liabilities which are not permitted by Ind AS, by reclassifying items from the previous GAAP to Ind AS as required under Ind AS, and applying Ind AS in measurement of recognized assets and liabilities. However, this principle is subject to certain exception and certain optional exemptions availed by the Company detailed as below.

45.2 Derecognition of financial assets and liabilities:

The Company has applied the Derecognition requirements of financial asset and financial liability prospectively for transactions occuring on or after 1st April 2016 (the transition date).

45.3 Impairment of financial asset:

The Company has applied the impairment requirement of Ind AS 109 retrospectively; however as permitted by Ind AS 101, it has used reasonable and supportable information that is available without undue cost or effort to determine the credit risk at the date that financial instrument were initially recognized in order to compare it with the credit risk at the transition date. Further, the Company has not undertaken an exhaustive search for information when determining, at the date of transition to Ind AS, whether there has been significant increase in credit risk since initial recognition as permitted by Ind AS 101.

45.4 Deemed cost for property, plant and equipment:

The Company has elected to continue with the carrying value of all its plant and equipment recognized as of 1st April 2016 (transition date) measured as per the previous GAAP and use that carrying value as its deemed cost as of the transition date.

46.5 Adjustments to Statements of Cash Flows

There were no material differences between the Statement of Cash Flows presented under Ind AS and the previous GAAP.

46.6 Notes to first time adoption

1 Under the previous GAAP, investments in equity instruments and mutual funds were classified as long-term investments or current investments based on the intended holding period and reliability. Long-term investments were carried at cost less permanent diminution, if any in the value of such investments. Current investments were carried at lower of cost and market value. Under Ind AS, these investments are required to be measured at fair value. The resulting fair value changes of these investments have been recognized in retained earnings as at the date of transition and subsequently in the statement of profit or loss in case of equity instruments or through other comprehensive income statement in case of debt instruments for the year ended 31st March 2017. This increased the retained earnings by '' 7,93,76,234/- as at 31st March 2017 (1st April 2016 - '' 3,45,75,048/-).

2 Under the previous GAAP, interest free lease security deposits (that are refundable in cash on completion of the lease term) are recorded at their transaction value. Under Ind AS, all financial assets are required to be recognized at fair value. Accordingly, the Company has fair valued these security deposits and under Ind AS difference between the fair value and transaction value of the security deposit has been recognized as prepaid rent. Consequent to this change, the amount of security deposits decreased by Rs, 1,22,883/- as at 31st March 2017 (1st April 2016 - Rs, 1,77,585). The prepaid rent increased by Rs, 1,22,883/- as at 31st March 2017 (1st April 2016 - Rs, 1,77,585/-).

3 Under Ind AS classification of compound financial instrument (OCPS) into equity & liability is very important to present true & fair view of financial statements. Therefore company has accordingly classified liability portion of OCPS as financial liability amounting to Rs, 2,61,84,470/- and according dividend paid is also charged as finance cost thereby increasing finance cost by Rs, 3,15,150/-. Under Indian GAAP no notified accounting standard prescribes distinction between equity / liability and was earlier shown as part of share capital.

4 Under the previous GAAP, dividends proposed by the Board of Directors after the balance sheet date but before the approval of the financial statements were considered as adjusting events. Accordingly, provision for proposed dividend was recognized as a liability. Under Ind AS, such dividends are recognized when the same is approved by the Shareholders in the general meeting. Accordingly, the liability for proposed dividend of Rs, 74,97,236/- as at 1st April 2016 has been reversed with corresponding adjustment to retained earnings. Consequently, the total equity increased by an equivalent amount.

5 Under Ind AS 19, 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 recognized in other comprehensive income instead of statement of profit and loss. Under the previous GAAP, these remeasurements were forming part of the statement of profit and loss for the year. As

a result of this change, the Statement of profit for the year ended 31st March 2017 decreased by Rs, 3,17,916/-(Net of tax). There is no impact on the total equity as at 31st March 2017.

6 Under the previous GAAP, depreciation was charged under Straight Line method on Assets held under other divisions. To comply wih Ind AS 16 Property, Plant and Equipment, the Company has adopted WDV method of depreciation for similar class of assets. Since the change in method of depreciation is considered as change in accounting estimate as per Ind AS 8, the effect is given prospectively. The effect of change is method on Financial statements has resulted in increase in depreciation by Rs, 23,88,351/-which is shown in above reconciliation statement.

7 Under Ind AS, all items of income and expense recognized in a period should be included in profit and loss for the period, unless a standard requires or permits otherwise. Items of income and expense that are not recognized in statement of profit and loss but are shown in the statement of profit and loss as ''other comprehensive income'' includes measurements of defined benefits plans. The concept of other comprehensive income did not exist under previous GAAP.

(b) Fair Value Hierarchy

The fair value hierarchy is based on inputs to valuation techniques that are used to measure fair value that are either observable or unobservable and consist of the following three levels :

Level 1 - Inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities.

Level 2 - Inputs are other than quoted prices included within level 1 that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices)

Level 3 - Inputs are not based on observable market data (unobservable inputs). Fair value are determined in whole or in part using a valuation model based on assumption that are neither supported by prices from observable current market transaction in the same instrument nor are they based on available market data.

The Investments included in leval 3 of fair value heir achy have been valued using the cost approach to arrive at their fair value. The cost of unquoted investments approximate the fair value because there is a wide range of possible fair value measurements and the cost represents estimate of fair value within the range.

1. Rights, Preferences and restrictions attached to each class of shares

Equity Shares: The company has one class of equity shares having a par value of RS. 10/- per share.

Each shareholder is eligible for one vote per share held. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting, except in case of interim dividend. In the event of liquidation, the equity shareholders are eligible to receive the remaining assets of the Company after distribution of all preferential amounts, in proportion to their shareholding.

2. Pursuant to the enactment of Companies Act, 2013, The Company has applied the estimated useful lives as specified in scheduled II, except in respect of certain assets as disclosed in Accounting Policy on Depreciation, Amortisation and Depletion. Accordingly the unamortised carrying value is depreciated / amortised over the revised / remaining lives. The written down value of Fixed Assets whose lives has expired as at 1st April, 2014 have been adjusted net of tax, in the opening balance of Profit and Loss Account amounting to 7 25.67 Lacs.

3. RELATED PARTY INFORMATION :

As per AS-18 issued by the institute of chartered accountants of India, the Company''s related parties are as under

1 (a) Key Management personnel and their relatives

1 Arvind Kapoor Chairman

2 Aditya Kapoor Managing Director

(b) Enterprises under significant influence of key management personnel

1. Rishiroop Polymers Pvt Ltd.

2. Rishiroop Rubber (International) Ltd.

3. Devi Organics Pvt Ltd

4. Rishichem Distributers Pvt Ltd

5. Rishiroop Investments & Trading Co. Pvt Ltd

6. Rishiroop Holding Pvt Ltd

7. Rishichem Mid- East Ltd

8. Rishi Foods Pvt Ltd

9. Puneet Polymers

(c) Trust under significant influence of key management personnel

Vidyadevi Kanta Kapoor Charitable Trust

4. LEASES

The company has taken office premise under leave and licence agreement. The leave and licence agreement is generally renewable or cancellable at the option of the Company or the Lessor. The lease payment on account of office amounting to RS. 17,26,392/- (P.Y. RS. 25,12,912/-) is recognised in the Statement of Profit and Loss. Future commitments in respect of minimum lease payments payable for non cancellable operating leases entered in to by the Company,

5. SEGMENT INFORMATION

The Company is engaged in the one business segment i.e. Polymer Compound and it is primary segment.

6. DERIVATIVE INSTRUMENTS

The Company enters into forward contracts to offset foreign currency risks arising from the amounts denominated in currencies other than the Indian Rupee. The counter party such forward contracts is a bank. These contracts are entered to hedge the foreign currency risks on the firm commitments. Details of forward contract outstanding as at the year end.

7. The Board of Directors of the Company, on 2nd September 2014, announced and approved the scheme of Amalgamation of Rishiroop Rubber (International) Limited with Puneet Resins Limited and their respective shareholders and creditors. As per the Scheme of Amalgamation, the business of Rishiroop Rubber (International) Limited shall be amalgamated with the Company. The Scheme has been approved by the shareholders at the Court Convened Meeting held on 12th February, 2015. The Company has filed the Company Scheme Petition before Hon''ble High Court of Bombay and the court has passed an oral order on 8th May, 2015 approving the amalgamation. The certified true copy of the final order is yet to be received. Appointed date of the Scheme is 1st April ,2014. The Company petition filed by the Transferor Company Rishiroop Rubbber (International) Limited is pending before the Hon''ble High Court of Gujarat.

Further, in consideration of Amalgamation, the Company will issue 71,03,914, 1% Optionally Convertible Preference Shares to the shareholders of Rishiroop Rubber (International) Limited (In the ratio of 3, 1% Optionally Convertible Preference Shares of Puneet Resins Limited of RS. 10/- each at premium of RS. 34/-, for every 5 equity shares of RS. 10/- each fully paid up held in the Share Capital of Rishiroop Rubber (International) Limited.

8. Previous year figures have been re-grouped, re-cast and re-arranged wherever necessary to make them comparable with the current year figures.

1. LEASES

The company has taken office premise under leave and licence agreement The leave and licence agreement is generally renewable or cancellable at the option of the Company or the Lessor. The Rent payment on account of office amounting to Rs. 25,12,912 (P.Y. Rs. 14.60,608) is recognised in the Statement of Profit and Loss. Future commitments in respect of minimum Rent payments payable for non cancellable operating leases entered in to by the Company,

2. SEGMENT INFORMATION

The Company is engaged in the one business segment i.e. Polymers and Compounds

3. DERIVATIVE INSTRUMENTS

The Company enters into forward contracts to offset foreign currency risks arising from the amounts denominated in currencies other than the Indian Rupee. The counter party such forward contracts is a bank. These contracts are entered to hedge the foreign currency risks on the firm commitments. Details of forward contract outstanding as at the year end.

1.1 Employee Benefits

The Company has a defined benefit plan. Every employee who has completed five years or more of service gets a Gratuity based on the 15 days last drawn basic salary for each completed year of service. The scheme is funded with an insurance company in the form of a qualifying insurance policy.

The Company has a defined unfunded obligation for leave encashment. Generally the leave encashment is paid to employees as and when claimed.

2. Related Party Information :

As per AS-18 issued by the Institute of Chartered Accountants of India, the Company''s related parties are as under:

1. (a) Key Management personnel and their relatives

1. Mahendra Kumar Kapoor Chairman

2. Arvind M Kapoor Director

3. Aditya Arvind Kapoor Managing Director

(b) Enterprises under significant influence of key management personnel

1. Rishiroop Polymers Pvt Ltd.

2. Rishiroop Rubber (International ) Ltd.

3. Devi Organics Pvt Ltd

4. Rishichem Distributers Pvt Ltd

5. Rishiroop Investments £t Trading Co. Pvt Ltd

6. Rishiroop Holding Pvt Ltd

7. Rishichem Mid- East Ltd

8. Rishi Foods Pvt Ltd

9. Puneet Polymers

3. LEASES

The company has taken office premise under leave and licence agreement. The leave and licence agreement is generally renewable or cancellable at the option of the Company or the Lessor. The lease payment on account of office amounting toRs. 14,60,608 (P.Y. Rs.16.57,540) is recognised in the Statement of Profit and Loss. Future commitments in respect of minimum lease payments payable for non cancellable operating leases entered in to by the Company,

4. SEGMENT INFORMATION

The Company is engaged in the one business segment i.e. Polymers and Compounds

5. DERIVATIVE INSTRUMENTS

The Company enters into forward contracts to offset foreign currency risks arising from the amounts denominated in currencies other than the Indian Rupee. The counter party such forward contracts is a bank. These contracts are entered to hedge the foreign currency risks on the firm commitments. Details of forward contract outstanding as at the year end.

1.1 Rights, Preferences and restrictions attached to each class of shares:

Equity Shares: The company has one class of equity shares having a par value of Rs. 10/- per share. Each shareholder is eligible for one vote per share held. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting, except in case of interim dividend. In the event of liquidation, the equity shareholders are eligible to receive the remaining assets of the Company after distribution of all preferential amounts, in proportion to their shareholding.

The details of shareholders holding more than 5% shares

2.1 Micro, Small & Medium Enterprises disclosure

The below information regarding Micro,Small and Medium Enterprises has been determined to the extent such parties have been identified on the basis of information available with the Company.

3.1 Employee Benefits

The Company has a defend benefit plan Every employee who has completed five year or more of service gets a gratuity on departure at 15 days salary ( last drawn salary) for each completed year of service. The scheme is funded with an insurance company in the form of a qualifying insurance policy.

The Company has a defend unfunded obligation for leave encashment. Generally the leave encashment is paid to employees as and when claimed.

* Excise Duty shown under other expenses represents the difference between Excise Duty on opening and closing stock of Finished Goods.

4 Related Party Information :

As per AS-18 issued by the Institute of Chartered Accountants of India, the Company's related parties are as under

1 (a) Key Management personnel and their relatives

1 Aditya Arvind Kapoor

(b) Enterprises under significant influence of key management personnel

1 Rishiroop Polymers Pvt Ltd

2 Rishiroop Rubber (International) Ltd

3 Devi Organics Pvt Ltd

4 Rishichem Distributors Pvt Ltd

5 Rishiroop Investments & Trading Co. Pvt Ltd

6 Rishiroop Holding Pvt Ltd

7 Rishichem Mid-East Ltd

8 Rishifoods Pvt Ltd

9. Puneet Polymers

5 LEASES

The company has taken office premise under leave and license agreement.

This leave and licence agreement is generally renewable or cancellable at the option of the Company or the Lessor.

The lease payment on account of Office amounting to Rs. 16,57,540 (P.Y. Rs. 13,80,000) is recognised in the Statement of Profit and Loss

Future commitments in respect of minimum lease payments payable for non cancellable operating leases entered in to by the Company

1. Previous years figures have been regrouped, recast and restated wherever necessary.

2. Micro, Small & Medium Enterprises

The below information regarding Micro,Small and Medium Enterprises has been determined to the extent such parties have been identified on the basis of information available with the Company. This has been relied upon by the auditors.

3. Secured loan

Cash credit and packing credit Rs.Nil (previous year Rs. 19,00,000/-) from The Sarswat Co-Op Bank Ltd are secured against hypothecation of inventories &, book debts.

Term Loan Rs. 4,99,864/- (previous year Rs. 13,24,354/-) from The Sarswat Co-Op Bank Ltd, are secured against equitable mortgage of immovable property and guarnteed by two directors. Motor Car Loan Rs. 35,25,322/- (previous year Rs. Nil) is secured by Hypothication of Motor Car.

4. Employee Benefits

The Company has a defined benefit plan Every employee who has completed five year or more of service gets a gratuity on departure at 15 days salary ( last drawn salary) for each completed year of service. The scheme is funded with an insurance company in the form of a qualifying insurance policy. The Company has a defined unfunded obligation for leave encashment. Generally the leave encashment is paid to employees as and when claimed.

5. Related Party Information :

As per AS-18 issued by the institute of chartered accountants of India, the Companys related parties are as under

1 (a) Key Managmement personnel and their relatives

1 Aditya Kapoor Managing Director

(b) Enterprises under signficant influence of key management personnel

1 Devi Organics Pvt Ltd

2 Rishiroop Polymers Pvt Ltd.,

3 Rishiroop Rubber (Int) Ltd.,

4 Rishichem Distributers Pvt Ltd

5 Rishiroop Investments & Trading Pvt Ltd

6 Rishiroop Holdings Pvt Ltd

7 Rishichem Mid-East Ltd

8 Rishifoods Pvt Ltd

6. Leases- AS 19

Operating Lease :

Premises is obtained on operating lease and is non cancellable for a period of two years at mutual consent.

There are no restrictions imposed by lease arrangements. The lease term is based on individual agreements.

There are no sub-lease.

The aggregate lease rentals payable are charged as rent (refer Schedule 17 ) in the Profit & Loss Account.

Future commitments in respect of minimum lease payments payable for non cancellable operating leases entered in to by the Company

7. Earning per share :

The basic earning per share ("EPS") is calculated by dividing the Profit after Tax by the number of Equity Shares outstanding.

1. Previous years figures have been regrouped, recast and restated wherever necessary.

2. Micro, Small & Medium Enterprises

The below information regarding Micro,Small and Medium Enterprises has been determined to the extent such parties have been identified on the basis of information available with the Company. This has been relied upon by the auditors.

3. Secured loan

Cash credit and packing credit Rs. 19,00,000/- (previous year Rs, 23,86,230/-) from The Sarswat Co-Op Bank Ltd are secured against hypothecation of inventories &, book debts.

Term Loan Rs, 13,24,354/- (previous year Rs. 21,09,604/-) from The Sarswat Co-Op Bank Ltd,are secured against equitable mortgage of immovable property and guaranteed by two directors.

6. Employee Benefits

The Company has a defined benefit plan Every employee who has completed five year or more of service gets a gratuity on departure at 15 days salary (last drawn salary) for each completed year of service. The scheme is funded with an insurance company in the form of a qualifying insurance policy. The Company has a defined unfunded obligation for leave encashment. Generally the leave encashment is paid to employees as and when claimed.

7. Related Party Information :

As per AS-18 issued by the institute of chartered accountants of India, the Companys related parties are as under

1 (a) Key Management personnel and their relatives

1 Aditya Kapoor Managing Director

(b) Enterprises under signficant influence of key management personnel

1 Rishiroop Polymers Private Limited

2 Rishiroop Rubber (International) Limited

3 Devi Organics Private Limited

4 Rishichem Distributers Private Limited

5 Rishiroop Investments & Trading Private Limited

6 Rishiroop Holdings Private Limited

7 Rishichem Mid-East Limited

8 Rubtrade.com (India) Private Limited

8. Leases-AS 19

Operating Lease :

Premises is obtained on operating lease and is non cancellable for a period of two years at mutual consent. Thereare no restrictions imposed by lease arrangements. The lease term is based on individual agreements. There are no sub-lease.

The aggregate lease rentals payable are charged as rent (refer Schedule 18 ) in the Profit & Loss Account.

Future commitments in respect of minimum lease payments payable for non cancellable operating leases entered in to by the Company