Notes to Accounts of Commercial Syn Bags Ltd.

Mar 31, 2025

(1) Provisions and Contingent Liabilities

Provisions

Provisions are recognised when the Company has a present obligation (legal or constructive) as a result of a past event, it is probable
that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate can be
made of the amount of the obligation. If the effect of the time value of money is material, provisions are discounted using a current
pre-tax rate that reflects, when appropriate, the risks specific to the liability. When discounting is used, the increase in the provision
due to the passage oftime is recognised as a finance cost.

Contingent Liabilities

Disclosure of contingent liability is made when there is a possible obligation arising from past events, the existence of which will be

confirmed only by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the
Company or a present obligation that arises from past events where it is either not probable that an outflow of resources embodying
economic benefits will be required to settle or a reliable estimate of amount cannot be made.

(g) Revenue Recognition

Revenue is measured at the amount of consideration which the Company expects to be entitled to in exchange for transferring distinct
goods or services to a customer as specified in the contract, excluding amounts collected on behalf of third parties (for example taxes
and duties collected on behalf of the government). Consideration is generally due upon satisfaction of performance obligations and a
receivable is recognised when it becomes unconditional.

Revenue from contracts with customers is recognised when control of the goods or services are transferred to the customer at an
amount that reflects the consideration entitled in exchange for those goods or services.

Sale of Goods

Generally, control is transferred upon shipment of goods to the customer or when the goods is made available to the customer,
provided transfer of title to the customer occurs and the Company has not retained any significant risks of ownership or future
obligations with respect to the goods shipped.

Commission income

The Company is also Del-credere Agent cum Consignment Stockiest of ONGC Petro additions Limited (OPaL) to deal in granules.
Generally, control is transferred upon shipment of goods to the customer or when the goods is made available to the customer,
provided transfer of title to the customer occurs and the Principal has not retained any significant risks of ownership or future
obligations with respect to the goods shipped.

Job work and other services

Revenue from rendering of other services is recognised over time by measuring the progress towards complete satisfaction of
performance obligations by using output method at the reporting period.

Interest Income

Interest Income from a Financial Assets is recognised using effective interest rate method.

Export Licences

The revenue from transfer of export licences has been recognised when control over licences are transferred.

(h) Contract Balances
Trade Receivables

A receivable represents the Company’s right to an amount of consideration that is unconditional.

Contract Liabilities

A contract liability is the obligation to transfer goods or services to a customer for which the Company has received consideration (or
an amount of consideration is due) from the customer. If a customer pays consideration before the Company transfers goods or
services to the customer, a contract liability is recognised when the payment is made or the payment is due (whichever is earlier).
Contract liabilities are recognised as revenue when the Company performs under the contract.

(i) Government Grants

Government grants, including non-monetary grants at fair value, are recognised when there is reasonable assurance that:

(a) The entity will comply with the conditions attaching to them; and

(b) The grants will be received.

Government grants are recognised in profit or loss on a systematic basis over the periods in which the entity recognises as expenses
the related costs for which the grants are intended to compensate.

Presentation of Government grants

Grant related to specific fixed assets are presented in the balance sheet by showing the grant as deduction from the gross value of asset
concerned in arriving at their book value.

Grants related to income are presented as part of profit or loss.

(j) Employee Benefits Expense
Short-Term Employee Benefits

The undiscounted amount of short-term employee benefits expected to be paid in exchange for the services rendered by employees
are recognised as an expense during the period when the employees render the services.

Leave encashment is accounted for on cash basis. Company compulsorily pays for encashment of leave within 12 months. Hence all
payments are short term in nature.

Post-Employment Benefits

Defined Contribution Plans

The Company recognises contribution payable to the Provident Fund and ESIC scheme as an expense, when an employee renders the
related service.

Defined Benefit Plans

The Company has opted Group Gratuity Scheme of Life Insurance Corporation of India. The Company makes contribution to the
fund under that scheme. Provision for obligations is made for any shortfall in contribution to the fund as against the present value of
defined benefit obligations towards gratuity at the reporting date.

Remeasurement gains and losses arising from adjustments and changes in actuarial assumptions are recognised in the period in
which they occur in Other Comprehensive Income.

(k) Borrowing Costs

Borrowing costs that are directly attributable to the acquisition or construction of qualifying assets are capitalised as part of the cost
of such assets. A qualifying asset is one that necessarily takes substantial period of time to get ready for its intended use.

All other borrowing costs are charged to the Statement of Profit and Loss for the period for which they are incurred.

(l) Impairment of Non-Financial Assets - Property, Plant and Equipment and Intangible Assets

The Company assesses at each reporting date as to whether there is any indication that any Property, Plant and Equipment and
Intangible Assets or group of Assets, called Cash Generating Units (CGU) may be impaired. If any such indication exists, the
recoverable amount of an asset or CGU is estimated to determine the extent of impairment, if any. When it is not possible to estimate
the recoverable amount of an individual asset, the Company estimates the recoverable amount of the CGU to which the asset
belongs.

If the recoverable amount of an asset (or CGU) is estimated to be less than its carrying amount, the carrying amount of the asset (or
CGU) is reduced to its recoverable amount. An impairment loss is recognised in the statement of profit and loss.

(m) Income Taxes
Income taxes

Income tax expense comprises current tax expense and the net change in the deferred tax asset or liability during the year. Current and
deferred taxes are recognised in statement of profit and loss, except when they relate to items that are recognised in other
comprehensive income or directly in equity, in which case, the current and deferred tax are also recognised in other comprehensive
income or directly in equity, respectively.

Current taxes

Current tax liabilities and assets are measured at the amount expected to be paid to or recovered from the Income Tax authorities,
based on tax rates and laws that are enacted at the reporting date.

Deferred taxes

Deferred tax is recognised using the balance sheet approach. Deferred tax assets and liabilities are recognised for deductible and

taxable temporary differences arising between the tax base of assets and liabilities and their carrying amount.

Deferred tax assets are recognised to the extent that it is probable that taxable profit will be available against which the deductible
temporary differences and the carry forward of unused tax credits and unused tax losses can be utilised.

The carrying amount of deferred tax assets is reviewed at each reporting date and reduced to the extent that it is no longer probable
that sufficient taxable profit will be available to allow all or part of the deferred income tax asset to be utilised.

Deferred income tax liabilities are recognised for all taxable temporary differences.

Deferred tax assets and liabilities are measured using substantively enacted tax rates expected to apply to taxable income in the years
in which the temporary differences are expected to be received or settled.

(n) Leases

The Company, as a lessee, recognises a right-of-use asset and a lease liability for its leasing arrangements, if the contract conveys the
right to control the use of an identified asset.

The contract conveys the right to control the use of an identified asset, if it involves the use of an identified asset and the Company has
substantially all of the economic benefits from use of the asset and has right to direct the use of the identified asset. The cost of the
right-of-use asset shall comprise of the amount of the initial measurement of the lease liability adjusted for any lease payments made
at or before the commencement date plus any initial direct costs incurred. The right-of-use assets is subsequently measured at cost
less any accumulated depreciation, accumulated impairment losses, if any and adjusted for any remeasurement of the lease liability.
The right-of-use assets is depreciated using the straight-line method from the commencement date over the shorter of lease term or
useful life ofright-of-use asset.

The Company measures the lease liability at the present value of the lease payments that are not paid at the commencement date of the
lease. The lease payments are discounted using the incremental borrowing rate.

For short-term and low value leases, the Company recognises the lease payments as an operating expense on a straight-line basis over
the lease term.

(o) Foreign Currencies Transactions and Translation
Initial Recognition and Measurement

Foreign currency transactions are translated into the functional currency using exchange rates at the date of the transaction i.e. spot
exchange rate between the functional currency and the foreign currency.

Subsequent recognition and Measurement

Monetary assets and liabilities denominated in foreign currencies are translated at the functional currency at closing rates of
exchange at the reporting date. Exchange differences arising on settlement or translation of monetary items are recognised in
Statement of Profit and Loss except to the extent of exchange differences which are regarded as an adjustment to interest costs on
foreign currency borrowings that are directly attributable to the acquisition or construction of qualifying assets which are capitalised
as cost of assets.

(p) Earnings Per Share

Basic earnings per share is calculated by dividing the net profit after tax by the weighted average number of equity shares outstanding
during the year adjusted for bonus element in equity share.

Diluted earnings per share adjusts the figures used in determination of basic earnings per share to take into account the conversion of
all dilutive potential equity shares. Dilutive potential equity shares are deemed converted as at the beginning of the period unless
issued at a later date.

f Capital Management

Equity share capital and other equity are considered for the purpose of Company’s capital management. The Company’s objective
for capital management is to maximise shareholder value, safeguard business continuity and support the growth of the Company.
The Company determines the capital requirement based on annual operating plans and long-term and other strategic investment
plans. The management and the Board of Directors monitor the return on capital as well as the level of dividends to shareholders.

g Earnings Per Share

Basic earnings per share is calculated by dividing the net profit after tax by the weighted average number of equity shares
outstanding during the year adjusted for bonus element in equity share.

Diluted earnings per share adjusts the figures used in determination of basic earnings per share to take into account the conversion of
all dilutive potential equity shares. Dilutive potential equity shares are deemed converted as at the beginning of the period unless
issued at a later date.

h Terms of securities convertible into equity shares

(i) The Company has issued 20,00,000 warrants of Rs. 72.00 (Previous Year: Nil) each convertible into equity share on
preferential basis to promoter and promoter group. The company has received 25% up front subscription of Rs. 18 per warrant
aggregating Rs. 360 Lakhs.

Farthest and earliest date of conversion are 19-09-2026 & 20-03-2025 respectively.

b Terms of Repayment of Term Loans and other loans:

b1 Term Loan from Kotak Mahindra Bank Limited

Term loan from Kotak Mahindra Bank Limited Rs 2,105.01 Lakhs (Previous year balance Rs 2,911.09 Lakhs) is secured by first and
exclusive hypothecation charge on all existing and future receivables/ current assets/ movable assets/ movable fixed assets of the
Borrower (i.e. Company) (excluding assets (vehicles) financed by other banks/FIs) of Unit I, SEZ and Techtex. It is further secured by
exclusive mortgage on following properties :-"

Nature of Security -

(a) Property situated at S-4/3, S-4/2 & S-4/3A, Sector - I, Pithampur, District Dhar (M.P.) consisting of leasehold land and building
thereon.

(b) Property situated at Plot No. 15, 16, 17 and 18 Special Economic Zone, Pithampur, District Dhar (M.P.) consisting ofleasehold
land and building thereon.

(c) Property situated at Plot No. 40-45, Shalimar Residency, Mhow, Indore consisting of freehold land and building thereon.

(d) Property situated at Block A & B of office premises at Commercial House, 3-4 Jaora Compound, MYH Road, Indore.

(e) Property at Plot No. A-12 & A-13 at SEZ Pithampur Phase 2 Dhar, (M.P.) in the name of Commercial Syn Bags Limited
(Techtex) Leasehold Landand Building thereon."

The Term Loan is further secured by Personal Guarantee(s) of Shri Anil Choudhary, Managing Director and Smt Ranjana Choudhary,
Whole Time Director of the Company and by Corporate Guarantee of Super Sack Pvt Ltd (Corporate Promoter ofthe Company).

Term Loan from Kotak Mahindra Bank Limited consists of Rupee Term Loan of Rs. 2084.95 Lakhs (Previous year balance. 2673.95
Lakhs) and Foreign Currency Term Loan (FCTL in Euro) of Rs. 20.06 Lakhs (Previous year balance Rs. 237.14 Lakhs). There
repayments are as -

(i) FCTL - 5933FC0400000006 of Rs. Nil Lakhs having interest rate 3.25 % (Euro Nil ) (Previous year balance is Rs. 20.43 Lakhs ,
Interest rate 3.25% (Euro 22,643.24 )) is repayable in Forty Six Equated Monthly Installment of Euro 3,814 each starting from June,
2020 to March, 2024 and balance of Euro 22,626.40 was paid in April, 2024.

(ii) FCTL - 5933FC0400000007 of Rs. Nil Lakhs having interest rate 5.91 % (Euro Nil) (Previous year balance Rs. 78.72 Lakhs having
interest rate 5.91 % (Euro 87,260.25 )) is repayable in Eight Equated Quarterly Installment of Euro 22,304 each starting from January,
2023 to October, 2024 and Balance of Euro 23,326.20 was paid in INR in January, 2025.

(iii) FCTL - 5933FC0400000008 of Rs. Nil Lakhs having interest rate 5.91 % (Euro Nil) (Previous year balance Rs. 81.49 Lakhs having
interest rate 5.91 %(Euro 90,330.56 )) is repayable in Eight Equated Quarterly Installment of Euro 23,087 each starting from January,

2023 to October, 2024 and Balance of Euro 24,152.37 was paid in INR in January, 2025.

(iv) FCTL - 5933FC0400000009 of Rs. 20.06 Lakhs having interest rate 5.94 % (Euro 21,727.64) (Previous year balance Rs. 56.50 Lakhs
having interest rate 5.94 %(Euro 62,628.39) is repayable in Eight Equated Quarterly Installment of Euro 10,906 each starting from
September, 2023 to June, 2025 and Balance ofEuro 11,300.91 will be paid in INR in September, 2025.

(v) Rupee Term Loan I (No. - 5933TL0100000177) of Rs. Nil Lakhs having interest rate 8.50 % (Previous year balance Rs. 46.52 Lakhs,
Interest rate 9.55%) is repayable in Eighteen Equated Quarterly Installment of Rs. 19.57 Lakhs each starting from June, 2020 to
September, 2024 and last installment of Rs. 9.39 Lakhs was paid in December, 2024.

(vi) Rupee Term Loan II (No.-5933TL0100000216) of Rs. Nil Lakhs having interest rate 8.50 % (Previous year''s balance Rs. 11.55 Lakhs,
Interest rate 9.55%) is repayable in Forty Nine Equated Monthly Installment of Rs. 3.36 Lakhs each starting from June, 2020 to June,

2024 and last installment ofRs. 1.68 Lakhs was paid in July, 2024.

(vii) Rupee Term Loan III (No.-5933TL0100000225) of Rs. Nil Lakhs having interest rate 8.25 %(Previous year balance Rs. 3.86 Lakhs,
Interest rate 9.65%) is repayable in Fifty One Equated Monthly Installment of Rs. 0.78 Lakhs starting from June, 2020 to August, 2024
and last installment of Rs. 0.072 Lakhs was paid in September, 2024.

(viii) Rupee Term Loan IV (No.-5933TL0100000392) of Rs. 2,084.95 having interest rate 8.50 % (Previous year balance Rs. 2,612.02 Lakhs
having interest rate 8.95 %) is repayable in Seventy Three Equated Monthly Installment starting from June, 2023 to July, 2029 and last
installment of Rs. 40.40 Lakhs will fall due in August, 2029.

b2 Term Loan from HDFC Bank Limited

"Term Loan from HDFC Bank Limited consists ofRupee Term Loan ofRs. 570.44 Lakhs (Previous year balance Rs. 896.13 Lakhs)."
Term loan from HDFC Bank Limited is secured by exclusive first charge by way of equitable mortgage of leasehold factory land

admeasuring about 23,113 sq ft. situated at 3/2 Sector 1 Industrial Area, Pithampur, Dist. Dhar and Building measuring at 24,180 sq. ft.
situated at 3/1 Sector 1 Industrial Area, Pithampur, Dist. Dhar It is further secured by exclusive first charge by way of equitable
mortgage of leasehold factory land admeasuring about 4932 sq. ft. & building thereon at Plot No. 309, Sector 1, Industrial Area,
Pithampur, Dist. Dhar (M.P.). The loan is further secured by Equitable Mortgage of the lease hold factory land admeasuring about 8745
sq. ft. and Building thereon at Plot No. S-2/1, Sector - 1, Pithampur Dist Dhar and hypothecation of entire machineries, electric
installations, furniture and fixtures, office equipments and other movable fixed assets of the Company, situated at the above mentioned
all factories, present and future. The loan also secured by exclusive 1st charge by way ofhypothecation of entire machineries, electrical
installations and other movable fixed assets ofthe company, situated at PH No. 36, village Galihara, Tehsil Sitamau, District Mandsaur
present and future.

The Term Loan is further secured by Personal Guarantee(s) of Shri Anil Choudhary, Managing Director and Smt Ranjana Choudhary,
Whole Time Director ofthe Company and by Corporate Guarantee of Super Sack Pvt Ltd (Corporate Promoter ofthe Company).

There repayment is as -

(i) Rupee Term Loan I (No.-83511438) of Rs. 272.69 Lakhs having interest rate 8.49% (Previous year balance is Rs. 437.29 Lakhs, interest
rate 9.09%) is repayable in Eighty Eight Equated Monthly Installment of Rs. 16.42 Lakhs starting from June, 2020 to September, 2026
and last installment ofRs. 14.59 Lakhs will fall due in September, 2026.

(ii) Rupee Term Loan II (No.-85084592/ Solar ) of Rs. 54.83 Lakhs having interest rate 8.49% (Previous balance is Rs. 109.94 Lakhs
interest rate 9.09%) is repayable in Sixty Two Equated Monthly Installment of Rs. 5.22 Lakhs starting from February, 2021 to March,
2026.

(iii) Rupee Term Loan III (No.-85256245) of Rs. 217.58 Lakhs having interest rate 8.49% (Previous year balance is Rs. 273.08 Lakhs
interest rate 9.09% ) is repayable in Eighty Nine Equated Monthly Installment of Rs. 6.45 Lakhs starting from June, 2021 to July, 2028.

(iv) Rupee Term Loan IV (No.-450555362) GECL- 01 of Rs. 25.33 Lakhs having interest rate 9.25% (Previous year balance is Rs. 75.82
Lakhs interest rate 9.25%) is repayable in Forty Nine Equated Monthly Installment of Rs. 4.62 Lakhs starting from September, 2022 to
September, 2025.

b3 Term Loan from State Bank of India

(i) Loan under Guaranteed Emergency Credit Line (GECL) by way of Working Capital Term Loan (WCTL) from State Bank of India Rs.
57.67 Lakhs having interest rate is 9.25%(Previous year balance is Rs. 195.88 Lakhs, Interest Rate 9.25% ) is secured by extension of
charge over the existing primary and collateral securities and receivable created out of bank finance, Fixed Deposit and collaterally
secured by Equitable Mortgage of leasehold factory land and building constructed thereon situated at Plot No. S-4/1, Sector - I,
Pithampur, Dhar (M.P.) and further secured by personal guarantee of Shri Anil Choudhary, Managing Director and Smt. Ranjana
Choudhary, Director ofthe Company."

Rupee Term Loan GECL Unit-01 (No.- 00000040365831307) of Rs. 57.67 Lakhs having interest rate 9.25 %(Previous year balance is
195.88 Lakhs, Interest Rate 9.25 %) is repayable in Thirty Six Monthly Installment of Rs. 11.55 Lakhs starting from August, 2022 to
July, 2025 (First Twelve Months Moratorium).

b4 Other Term Loans

(i) Term Loan (Car Loan-Tucson) from HDFC of Rs. 20.37 Lakhs having interest rate 7.90 %(Previous year balance Rs 26.97 Lakhs
Interest rate 7.90%) is repayable in Sixty equated monthly instalment of Rs. 0.71 Lakhs each commencing from December, 2022 to
November, 2027. Secured by hypothecation of Hyundai Tucson.

(ii) Term Loan (Car Loan-Innova) from HDFC of Rs. 28.62 Lakhs having interest rate 8.90 %(Previous year balance Rs Nil Lakhs) is
repayable in Thirty Nine equated monthly instalment of Rs. 1.04 Lakhs each commencing from August, 2024 to October, 2027. Secured
by hypothecation of Innova.

(iii) Term Loan (Car Loan- 1327) from Bank of Baroda of Rs. Nil Lakhs having interest rate 9.65 % (Previous year balance Rs. 28.35 Lakhs
Interest rate 9.65%) is repayable in Eighty Three equated monthly instalment of Rs. 0.76 Lakhs each commencing from August, 2020 to
June, 2027 and last installment of Rs. 4.17 Lakhs in July, 2027. The term loan is secured by hypothecation of vehicle Volvo S-90 which
is sold during the year and loan is prepaid in full.

(iv) Term Loan (Car Loan- 1756) from Bank ofBaroda ofRs. 16.62 Lakhs having interest rate 9.85 % (Previous year balance is 19.77 Lakhs,
Interest Rate 9.85%) is repayable in Eighty Three equated monthly instalment of Rs. 0.41 Lakhs each commencing from October, 2021
to August, 2028 and last installment ofRs. 3.29 Lakhs in September, 2028. The term loan is secured by hypothecation of Innova Car.

(v) Term Loan (Car Loan- 1952) from Bank of Baroda of Rs. 14.12 Lakhs having interest rate 9.60 % (Previous year balance is Rs. 16.33
interest rate 9.60%) is repayable in Eighty Three equated monthly instalment of Rs. 0.31 Lakhs each commencing from June, 2022 to
April, 2029 and last installment ofRs. 2.58 Lakhs in May, 2029. The term loan is secured by hypothecation of XUV700 Car.

Other Information
Terms of Repayments of loan

Kotak Mahindra Bank Limited

Working Capital Loan from Kotak Mahindra Bank Limited of Rs. 6,353.77 Lakhs having interst rate 8.45% (Previous balance
Rs. 4,700.60 Lakhs, interest rate 8.45%) is secured by first and exclusive hypothecation charge on all existing and future
receivables/ current assets/ movable assets/ movable fixed assets of the Borrower (excluding assets (vehicles) financed by
other banks/FIs) of Unit I, SEZ and Techtex. It is further secured by exclusive mortgage on following properties-"

(a) Property situated at S-4/3, S-4/2 & S-4/3A, Sector - I, Pithampur, District Dhar (M.P.) consisting of leasehold land and
building thereon.

(b) Property situated at Plot No. 15, 16, 17 and 18 Special Economic Zone, Pithampur, District Dhar (M.P.) consisting of
leasehold land and building thereon.

(c) Property situated at Plot No. 40-45, Shalimar Residency, Mhow, Indore consisting of freehold land and building thereon.

(d) Property situated at Block A & B of office premises at 3-4 Jaora Compound, MYH Road, Indore.

(e) Property at Plot No. A-12 & A-13 at SEZ Pithampur Phase 2 Dhar, (M.P.) in the name of Commercial Syn Bags Limited
(Leasehold Land).

The Working loan is also guaranteed by Shri Anil Choudhary Managing Director, Smt. Ranjana Choudhary, Whole Time
Director of the Company and Corporate Guarantee of Super Sack Pvt Ltd (Corporate Promoter of the Company).

HDFC Bank Limited

Working Capital Loan from HDFC Bank Limited of Rs. 53.20 Lakhs having interest rate 8.58% (Previous balance Rs. 447.41

Lakhs, Interest Rate 9.01%) is primarily secured by hypothecation of Plant and Machinery, Stock, Book Debts, FD of Unit - II
and collaterally secured by Equitable Mortgage of property at Plot No. S-2/1, 3/1,3/2 & Plot No. 309, Sector - I, Pithampur,
Dhar (M.P.) consisting of leasehold land and building thereon. "

State Bank of India

Working Capital Loan from State Bank of India of Rs. Nil Lakhs (Previous balance Rs. 329.43 Lakhs) is secured by first charge
by way of hypothecation of company’s stock/ receivable created out of bank finance, Fixed Deposit and collaterally secured
by Equitable Mortgage of leasehold factory land and building constructed thereon situated at Plot No. S-4/1, Sector - I,
Pithampur, Dhar (M.P.) and further secured by personal guarantee of Shri Anil Choudhary, Managing Director and Smt.
Ranjana Choudhary, Whole-time Director of the Company.

Description of Plans and risks

Defined benefit plans ofthe Company comprises Gratuity.

The gratuity plan provides for a lump sum payment to vested employees at retirement, death while in employment or on termination
of employment.

The Company has opted the Employee Group Gratuity Scheme ofthe insurance service provider Life Insurance Corporation of India
("LIC") . Payments for Gratuity are funded through investments with Life Insurance Corporation of India.

The Company’s investment strategy in respect of its funded plans is implemented within the framework of the applicable statutory
requirements. The plans expose the Company to a number of actuarial risks such as investment risk, interest rate risk, longevity risk
and inflation risk. The Company has developed policy guidelines for the allocation of assets to different classes with the objective of
controlling risk and maintaining the right balance between risk and long-term returns in order to limit the cost to the Company of the
benefits provided.

The Company makes annual contribution to the Employee''s Group Gratuity Cum Life Assurance Scheme of the Life Insurance
Corporation of India, a funded benefit plan for qualifying employees. The Scheme provides for lump sum payment to vested
employees at retirement, death while in employment or on termination of employment of an amount equivalent to 15 days salary
payable for each completed year of service or part thereof in excess of six months. Vesting occurs upon completion of five years of
service.

The figures of present value ofthe defined benefit obligation and the related current service cost were as measured and provided to us
by a consulting actuary.

The expected contributions for Defined Benefit Plan for the next financial year will be in line with FY 2024-25.

In respect of Sales Tax

Demands amounting to Rs. 186.69 lakhs ( Previous Year 186.69 Lakhs) have been raised by the Indirect Tax Authorities which
is contested by the company based on management evaluation and legal advice of tax consultants. Based on legal advice that
these amounts would get deleted or substantially reduced, the Company has not recognised these as liabilities.

36 Additional Regulatory Information-

(i) Immovable Properties (other than properties where the company is the lessee and the lease agreements are duly executed
in favour of the lessee) whose title deeds are not held in the name of the company and where such immovable property is
jointly held with others, details are given to the extent of company''s share. - The Company has no such immovable
properties

(ii) The company does not hold any investment property.

(iii) The company has not revalued its property, plant and equipments.

(xi) The company was not declared wilful defaulter by any Bank/Financial Institution/other lender.

(xii) Relationship with struck off Companies- Nil/None

(xiii) Registration of charges or satisfaction with Registrar of Companies- No charge registration or satisfaction was
pending on the date of balance-sheet.

(xiv) Compliance with number of layers of companies- The Company has complied with laws in respect of number of layers
of companies.

(xv) Ratios- Refer note no 43 for ratios

(xvi) The information is not applicable - Compliance with approved Scheme(s) of Arrangements

"(xvii) Utilisation of Borrowed funds and share premium- No funds 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(s) or
entity(ies), including foreign entities (‘Intermediaries’) with the understanding, whether recorded in writing or
otherwise, that the Intermediary shall lend or invest in other person(s) or entity(ies) party identified in any manner
whatsoever by or on behalf of the Company (‘Ultimate Beneficiaries’). or provide any guarantee, security or the like to
or on behalf of the ultimate beneficiaries. The Company has not received any fund from any person(s) or entity(ies),
including foreign party(s) ‘Funding Party’) with the understanding that the Company shall whether, directly or
indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the funding
party (ultimate beneficiaries) or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries."

(xviii) Details of Crypto Currency or virtual currency- Nil
Details of items of exceptional and extraordinary nature- Nil

(xix) The company has not surrendered or disclosed any amount as income during the year in the tax assessment under the
Income Tax Act,1961.

38 Segment Information

i. The Company has determined following reporting segments based on the information reviewed by the Company’s Chief Operating
Decision Maker (‘CODM’):

a. Manufacturing segment - Business of manufacture and sale of FIBC, HDPE/PP Tarpaulin, HDPE/PP, Bags, Ground Cover, Pond
Liners, Mulch Film, HDPE/PP Fabric, Laminates, Vermi Beds and Geotextiles, Ground Cover, Nets and other technical textiles
products which mainly have same risks and returns.

b. Trading segment - Trading of Granule ( Del credre agent cum Consignment Stockiest)

Power generated from solar power is captively consumed. The solar power generation segment is integral part of manufacturing
segment''.

The above business segments have been identified considering :

a. the nature ofproducts and services

b. the differing risks and returns

c. the internal organisation and management structure, and

d. the internal financial reporting systems.

ii. The Company''s Chief operating Decision maker is Managing Director and Chief Executive Officer.

iii. The accounting policies adopted for segment reporting are in line with the accounting policy of the Company with following
additional policies for segment reporting.

(a) Revenue and Expenses have been identified to a segment on the basis of relationship to operating activities of the segment.
Revenue and Expenses which relate to enterprise as a whole and are not allocable to a segment on reasonable basis have been
disclosed as “Unallocable”.

(b) Segment Assets and Segment Liabilities represent Assets and Liabilities in respective segments. Tax related assets and other
assets and liabilities that cannot be allocated to a segment on reasonable basis have been disclosed as “Unallocable”.

The Company is exposed primarily to market risks being fluctuations in foreign currency exchange rates and interest rate, and
other risks namely credit and liquidity risks, which may adversely impact the fair value of its financial instruments. The
Company has a risk management policy which covers risks associated with financial assets and liabilites. The focus is to assess
the unpredictability of the financial environment and to mitigate the potential adverse effects on the financial performance of
the Company.

d1. Management of Market Risk

The Company’s size and operations result in it being exposed to the following market risks that arise from its use of financial
instruments:

d2. Foreign Currency Exchange Rate Risk

The fluctuation in foreign currency exchange rates may have potential impact on the statement of profit and loss and other
comprehensive income and equity, where any transaction references more than one currency or where assets / liabilities are
denominated in a currency other than the functional currency of the company.

The Company as per its risk management policy, uses derivative instruments primarily to hedge foreign exchange.

The foreign exchange rate sensitivity is calculated by aggregation of the net foreign exchange rate exposure and a
simultaneous parallel foreign exchange rates shift of all the currencies by 1% against the functional currency of the Company.

Credit risk is the risk that a customer or counterparty to a financial instrument fails to perform or pay the amount according to
the contractual terms or obligations causing financial loss to the Company

Credit risk encompasses of risk of default, risk of deterioration of creditworthiness as well as concentration of risks.

Credit risk is controlled by analysing credit limits and creditworthiness of customers of a continuous basis to whom the credit
has been granted.

Exposure to Credit Risk

The carrying amount of financial assets represents the maximum credit exposure.

The maximum exposure to credit risk is Rs 9,963.66 lakhs ( Rs 9,296.28 lakhs in preceding year) being the total of carrying
amount of trade receivables, balance with banks, bank deposits and other financial assets.

Trade receivables

Concentration of credit risk with respect to trade receivables are limited, due to the Company’s customer base being large and
diverse. All trade receivables are reviewed and assessed for default on a quarterly basis.

Other financial assets

The Company maintains exposure in bank balances and term deposits with banks. Considering insignificant amounts and short
term nature, there is no significant risks pertaining to these assets.

d5. Management of Liquidity Risk

Liquidity risk arises from the Company’s inability to meet its cash flow commitments on the due date.

The Company has obtained fund and non-fund based working capital lines from various banks. Furthermore, the Company
have access to undrawn lines of committed and uncommitted borrowing/ facilities

The Company has maintained a cautious liquidity strategy, with a positive cash balance throughout the year ended 31st March,
2025 and 31st March, 2024. Cash flow from operating activities provides the funds to service and finance the financial
liabilities on a day-to-day basis.

The following table shows a maturity analysis of the anticipated cash flows including interest obligations for the Company’s
non-derivative financial liabilities on an undiscounted basis, which therefore differ from both carrying value and fair value.

The accompanying notes 1 to 44 are an integral part of these Financial Statement A_s p_er our report ₀f _even d_at_{e a}tta_ch_ed

For and on Behalf of Board of Directors For Ashok Kumar Agrawal & Associates

Chartered Accountant
FRN :022522C

Anil Choudhary Ranjana Choudhary Ravindra Choudhary

Managing Director Whole Time Director Chief Executive Officer

DIN 00017913 DIN 03349699

Abhishek Jain Sandeep Patel Place: Indore (CA Ashok Kumar Agrawal )

Chief Financial Officer Company Secretary Date : 30.05.2025 Proprietor

M No. - FCS 13157 M.No. 071274

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Mar 31, 2024

a. Defined Contribution Plans :

All eligible employees of the Company in India are entitled to receive benefits under the provident fund plan. The Company makes provident fund contribution, a defined contribution plan, for qualifying employees. It also contributes to employee state insurance corporation,which is also defined contribution plan. The Company recognised Rs. 190.17 lakhs (Previous Year : 168.25 lakhs) and Rs. 91.77 lakhs ( Previous Year : Rs. 78.46 lakhs) respectively for PF and ESIC contruibution in statement of profit and loss Provident fund and ESIC are managed through government administered funds.

Defined benefit plans ofthe Company comprises Gratuity.

The gratuity plan provides for a lump sum payment to vested employees at retirement, death while in employment or on termination of employment.

The Company has opted the Employee Group Gratuity Scheme ofthe insurance service provider Life Insurance Corporation of India ("LIC") . Payments for Gratuity are funded through investments with Life Insurance Corporation of India.

The Company’s investment strategy in respect of its funded plans is implemented within the framework of the applicable statutory requirements. The plans expose the Company to a number of actuarial risks such as investment risk, interest rate risk, longevity risk and inflation risk. The Company has developed policy guidelines for the allocation of assets to different classes with the objective of controlling risk and maintaining the right balance between risk and long-term returns in order to limit the cost to the Company of the benefits provided.

The Company makes annual contribution to the Employee''s Group Gratuity Cum Life Assurance Scheme of the Life Insurance Corporation of India, a funded benefit plan for qualifying employees. The Scheme provides for lump sum payment to vested employees at retirement, death while in employment or on termination of employment of an amount equivalent to 15 days salary payable for each completed year of service or part thereof in excess of six months. Vesting occurs upon completion of five years of service.

The figures of present value ofthe defined benefit obligation and the related current service cost were as measured and provided to us by a consulting actuary.

In respect of Sales Tax

Demands amounting to Rs. 186.69 lakhs ( Previous Year 182.19 Lakhs) have been raised by the Indirect Tax Authorities which is contested by the company based on management evaluation and legal advice of tax consultants. Based on legal advice that these amounts would get deleted or substantially reduced, the Company has not recognised these as liabilities.

35 Additional Regulatory Information-

(i) Immovable Properties (other than properties where the company is the lessee and the lease agreements are duly executed in favour of the lessee) whose title deeds are not held in the name of the company and where such immovable property is jointly held with others, details are given to the extent of company''s share. - The Company has no such immovable properties

(iv) There is no Intangible assets under development.

(v) No proceedings have been initiated or pending against the company, under Prohibition of Banami Property Transaction Act.

(vi) The company has borrowings from the bank or financial institutions on the basis of security of current assets.

(vii) Quarterly returns or assessments of current assets filed by the company with banks or financial institutions are not in agreement with books of accounts. Following are the summary of reconciliation and reasons of material discrepancies-

Reason for Differences:

Inventory : Inventory is valued as per companies accounting policy, at the time of finalisation of financial statements whereas the same is taken on estimated basis for submission before bank.

Trade Receivables :

Difference in trade receivables is due to following reasons -

a. Recognition of revenue and trade receivables is made as per principles of Ind AS 115 at the time of finalisation of financial statements. Whereas trade receivables are reported to banks without applying principles of Ind AS 115.

b. Making of adhoc loss allowance when submitting statements to the bank while loss allowance as per Ind AS 109 is made while finalising financial statements.

(viii) The company was not declared wilful defaulter by any Bank/Financial Institution/other lender.

(ix) Relationship with struck off Companies- Nil/None

(x) Registration of charges or satisfaction with Registrar of Companies- No charge registration or satisfaction was pending on the date of balance-sheet.

(xi) Compliance with number of layers of companies- The Company has complied with laws in respect of number of layers of companies.

(xii) Details of Crypto Currency or virtual currency- Nil Details of items of exceptional and extraordinary nature- Nil

(xiii) The company has not surrendered or disclosed any amount as income during the year in the tax assessment under the Income Tax Act,1961.

37 Segment Information

i. The Company has determined following reporting segments based on the information reviewed by the Company’s Chief Operating Decision Maker (‘CODM’):

a. Manufacturing segment - Business of manufacture and sale of FIBC, HDPE/PP Tarpaulin, HDPE/PP, Bags, Ground Cover, Pond Liners, Mulch Film, HDPE/PP Fabric, Laminates, Vermi Beds and Geotextiles, Ground Cover, Nets and other technical textiles products which mainly have same risks and returns.

b. Trading segment - Trading of Granule ( Del credre agent cum Consignment Stockiest)

Power generated from solar power is captively consumed. The solar power generation segment is integral part of manufacturing segment''.

The above business segments have been identified considering :

a. the nature ofproducts and services

b. the differing risks and returns

c. the internal organisation and management structure, and

d. the internal financial reporting systems.

ii. The Company''s Chief operating Decision maker is Managing Director and Chief Executive Officer.

iii. The accounting policies adopted for segment reporting are in line with the accounting policy of the Company with following additional policies for segment reporting.

(a) Revenue and Expenses have been identified to a segment on the basis of relationship to operating activities of the segment. Revenue and Expenses which relate to enterprise as a whole and are not allocable to a segment on reasonable basis have been disclosed as “Unallocable”.

(b) Segment Assets and Segment Liabilities represent Assets and Liabilities in respective segments. Tax related assets and other assets and liabilities that cannot be allocated to a segment on reasonable basis have been disclosed as “Unallocable”.

Other Information

1 Remuneration paid to Key Managerial Person

The above figures do not include provisions for gratuity as separate actuarial valuation are not available and the cost to develop it would be excessive.

"The contributions to defined contribution plans for key management personnel in respect of Provident fund is Rs. 0.86 lakhs (Previous Year : Rs. 0.86 lakhs)"

2 Terms and Conditions for Outstanding Balances:

The balances are unsecured and would be settled in money.

3 Guarantee Given or Received by or to any Related Party

The Loan of Rs. 9571.96 Lakhs (Previous Year Rs. 6391.08 Lakhs) is guaranteed by Shri Anil Choudhary (Managing Director) and Smt Ranjana Choudhary (Whole Time Director)

39 Corporate Social Responsibility (CSR)

(a) CSR amount required to be spent as per Section 135 of the Companies Act, 2013 read with Schedule VII there of by the company during the year is Rs. 29.97 Lakhs (Previous Year Rs. 33.28 Lakhs).

(b) Expenditure related to Corporate Social Responsibility is Rs. 11.42 Lakhs (Previous Year Rs. 34.60 Lakhs)

40 Research & Development

The company conducts its R&D initiatives within the broad framework of innovation initiatives.

The company purchased technologically upgraded Circular Loom, Stitching Machine, Ultrasonic Cutting and Sealing Machine, for its units.

41 Disclosures pursuant to Regulation 34 (3) of Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 and Section 186 of the Companies Act, 2013

(c) Investment by the loanees in the shares ofthe Company

The loanees have not made any investments in the shares of the Company.

(d) Refer Note 4 for details of Investments in subsidiaries, associates and other entities

(e) Details of guarantees given

Corporate Guarantee given to Kotak Mahindra Bank Limited for credit facility availed by Comsyn India Private Limited outstanding Rs. 505.36 Lakhs (Previous Year 505.36 Lakhs)

(f) The Company has not provided any security covered under Section 186 and accordingly, the disclosure requirements to that extent does not apply to the Company

Carrying amounts of trade receivables, Investments, cash and cash equivalents, bank balances, and trade payables as at March 31, 2024 and 2023, approximate the fair value.

Difference between carrying amount and fair value of Loans, Other financial assets, borrowings and other financial liabilities subsequently measured at amortised cost is not significant. Fair value measurement of lease liabilities is not required.

Terms and conditions relating to pledge :-

Trade Receiables & Other Financial Assets: All existing/ future Trade Receivables & Other Financial Assets have been hypothicated to secure working capital loan.Fixed Deposit have been pledged to secure the Bank Gurantee issued in our favour.

The Company is exposed primarily to market risks being fluctuations in foreign currency exchange rates and interest rate, and other risks namely credit and liquidity risks, which may adversely impact the fair value of its financial instruments. The Company has constituted a Risk Management Committee, which is responsible for developing and monitoring the Company’s risk management Committee, which is responsible for developing and monitoring the Company’s risk management policies. The Company has a risk management policy which covers risks associated with financial assets and liabilites. The focus of risk management committee is to assess the unpredictability of the financial environment and to mitigate the potential adverse effects on the financial performance ofthe Company.

d1. Management of Market Risk

The Company’s size and operations result in it being exposed to the following market risks that arise from its use of financial instruments:

d2. Foreign Currency Exchange Rate Risk

The fluctuation in foreign currency exchange rates may have potential impact on the statement of profit and loss and other comprehensive income and equity, where any transaction references more than one currency or where assets / liabilities are denominated in a currency other than the functional currency ofthe company.

The Company as per its risk management policy, uses derivative instruments primarily to hedge foreign exchange.

The foreign exchange rate sensitivity is calculated by aggregation of the net foreign exchange rate exposure and a simultaneous parallel foreign exchange rates shift of all the currencies by 1% against the functional currency ofthe Company.

d3. Interest Rate Risk

The Company is also exposed to interest rate risk, changes in interest rates will affect future cash flows or the fair values of its financial instruments, principally debt. Any movement in the reference rates could have an impact on the Company’s cash flows as well as costs. The Company is subject to variable interest rates on some of its interest bearing liabilities.

Credit risk is the risk that a customer or counter party to a financial instrument fails to perform or pay the amount according to the contractual terms or obligations causing financial loss to the Company

Credit risk encompasses of risk of default, risk of deterioration of creditworthiness as well as concentration of risks.

Credit risk is controlled by analysing credit limits and creditworthiness of customers of a continuous basis to whom the credit has been granted.

Exposure to Credit Risk

The carrying amount of financial assets represents the maximum credit exposure.

The maximum exposure to credit risk is Rs 9,296.28 lakhs ( Rs 5,442.57 lakhs in preceding year) being the total of carrying amount of trade receivables, balance with banks, bank deposits and other financial assets.

Trade receivables

Concentration of credit risk with respect to trade receivables are limited, due to the Company’s customer base being large and diverse. All trade receivables are reviewed and assessed for default on a quarterly basis.

Other financial assets

The Company maintains exposure in bank balances and term deposits with banks. Considering insignificant amounts and short term nature, there is no significant risks pertaining to these assets.

d5. Management of Liquidity Risk

Liquidity risk arises from the Company’s inability to meet its cash flow commitments on the due date.

The Company has obtained fund and non-fund based working capital lines from various banks. Furthermore, the Company have access to undrawn lines of committed and uncommitted borrowing/ facilities

The Company has maintained a cautious liquidity strategy, with a positive cash balance throughout the year ended 31st March, 2024 and 31st March, 2023. Cash flow from operating activities provides the funds to service and finance the financial liabilities on a day-to-day basis.

The following table shows a maturity analysis of the anticipated cash flows including interest obligations for the Company’s non-derivative financial liabilities on an undiscounted basis, which therefore differ from both carrying value and fair value.

43 f. Derivative financial instruments and hedging activity

The company’s revenue is denominated in various foreign currencies. Given the nature the business, a large portion of costs are denominated in Indian Rupees. This exposes the company to currency fluctuations.

The Board of Directors have constituted a Risk Management Committee to frame, implement and monitor the risk management plan of the company which inter alia covers risks arising out of exposure of foreign currency fluctuations.

The company uses various derivative instruments such as foreign exchange forward in which the counter party is generally the bank.

The following are outstanding foreign currency forward contracts, which have been designated as fair value hedges -

43 g. In respect of some financial assets the Company does not recognise a gain or loss on initial recognition of a financial asset or

financial liability because the fair value is neither evidenced by a quoted price in an active market for an identical asset or liability (i.e. a Level 1 input) nor based on a valuation technique that uses only data from observable markets. The Company has so concluded because these financial assets are interest free deposits made by the company.

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Mar 31, 2023

No funds 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(s) or entity(ies), including foreign entities (“Intermediaries”) with the understanding, whether recorded in writing or otherwise, that the Intermediary shall lend or invest in party identified by or on behalf of the Company (Ultimate Beneficiaries). The Company has not received any fund from any party(s) (Funding Party) with the understanding that the Company shall whether, directly or indirectly lend or invest in other persons or entities identified by or on behalf of the Company (“Ultimate Beneficiaries”) or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

No funds 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(s) or entity(ies), including foreign entities (“Intermediaries”) with the understanding, whether recorded in writing or otherwise, that the Intermediary shall lend or invest in party identified by or on behalf of the Company (Ultimate Beneficiaries). The Company has not received any fund from any party(s) (Funding Party) with the understanding that the Company shall whether, directly or indirectly lend or invest in other persons or entities identified by or on behalf of the Company (“Ultimate Beneficiaries”) or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

d Terms/ Rights attached to equity shares :

The company has only one class of equity shares having a par value of 10/- per share. Each holder of equity shares is entitled to one vote per share. 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.

e Preferential issue

The Company has issued 15,00,000 warrants of Rs. 130 each convertible into equity shares on preferential basis to promoter, promoter group and other specified person categorized as public and received up-front subscription of Rs. 32.50 per warrant aggregating Rs. 487.50 Lakhs. The promoter and promoter group has exercised the option for conversion of warrant into equity shares for their total 5,85,000 warrants by paying Rs. 97.50 per warrant aggregating Rs. 570.38 Lakhs. Thus 5,85,000 shares of Rs. 10 each were allotted to promoters and promoters group at a premium of Rs. 120. per share on 26th March, 2022.The other specified person categorized as public has exercised the option for conversion of warrant into equity shares for their total 3,07,500 warrants by paying Rs. 97.50 per warrant aggregating Rs. 399.75 Lakhs. Thus 3,07,500 shares of Rs. 10 each were allotted to other specified person categorized as public at a premium of Rs. 120 per share on 24th June, 2022.The other specified person categorized as public has exercised the option for conversion of warrant into equity shares for their total 6,07,500 warrants by paying Rs. 97.50 per warrant aggregating Rs. 789.75 Lakhs. Thus 6,07,500 shares of Rs. 10 each were allotted to other specified person categorized as public at a premium ofRs. 120 per share on 17th September, 2022.

f Capital Management

Equity share capital and other equity are considered for the purpose of Company’s capital management. The Company’s objective for capital management is to maximise shareholder value, safeguard business continuity and support the growth of the Company. The Company determines the capital requirement based on annual operating plans and long-term and other strategic investment plans. The management and the Board of Directors monitor the return on capital as well as the level of dividends to shareholders.

g Earnings Per Share

Basic earnings per share is calculated by dividing the net profit after tax by the weighted average number of equity shares outstanding during the year adjusted for bonus element in equity share.

Diluted earnings per share adjusts the figures used in determination of basic earnings per share to take into account the conversion of all dilutive potential equity shares. Dilutive potential equity shares are deemed converted as at the beginning of the period unless issued at a later date.

h Terms of securities convertible into equity shares

The Company has issued 15,00,000 warrants of Rs. 130.00 each convertible into equity share on preferential basis to promoter, promoter group and other specified person categorized as public and received up front subscription of Rs. 32.50 per warrant aggregating Rs. 487.50 Lakhs. The promoter and promoter group has exercised the option for conversion of warrant into equity shares for their total 5,85,000 warrants by paying Rs. 97.50 per warrant aggregating Rs. 570.38 Lakhs. Thus 9,15,000 share warrant are outstanding at carrying value of Rs. 297.38 Lakhs

i The company has received total Rs. 1950.00 Lakhs by issue of preferential warrants convertible into equity share to promoter, promoter group and other specified purpose. The amount received were being utilized for the intended purpose as mentioned in the

b Terms of Repayment of term loans and other loans:

bl Term Loan from Kotak Mahindra Bank Limited

Term loan from Kotak Mahindra Bank Limited Rs 2621.71 Lakhs (Previous year balance Rs 1059.77 Lakhs) is secured by first and exclusive hypothecation charge on all existing and future receivables/ current assets/ movable assets/ movable fixed assets of the Borrower (i.e. Company) (excluding assets (vehicles) financed by other banks/FIs) of Unit I, SEZ and Techtex. It is further secured by exclusive mortgage on following properties :-Nature of Security -

(a) Property situated at S-4/3, S-4/2 & S-4/3A, Sector - I, Pithampur, District Dhar (M.P.) consisting of leasehold land and building thereon.

(b) Property situated at Plot No. 15, 16, 17 and 18 Special Economic Zone, Pithampur, District Dhar (M.P.) consisting of leasehold land and building thereon.

(c) Property situated at Plot No. 40-45, Shalimar Residency, Mhow, Indore consisting of freehold land and building thereon.

(d) Property situated at Block A & B of office premises at 3-4 Jaora Compound, MYH Road, Indore.

(e) Property at Plot No. A-12 & A-13 at SEZ Pithampur Phase 2 Dhar, (M.P.) in the name of Commercial Syn Bags Limited (Techtex) (Leasehold Land).

The Term Loan is further secured by Personal Guarantee(s) of Shri Anil Choudhary, Managing Director and Smt Ranjana Choudhary, Whole Time Director of the Company and by Corporate Guarantee of Super Sack Pvt Ltd (Corporate Promoter of the Company).

Term Loan from Kotak Mahindra Bank Limited consists of Rupee Term Loan of Rs. 2059.82 Lakhs (Previous balance Rs. 286.02) and Foreign Currency Term Loan (FCTL in Euro) of Rs. 561.89 Lakhs (Previous balance Rs. 773.74 Lakhs). There repayments are as -

(i) FCTL - 5933FC0400000004 of Rs. 94.86 Lakhs having interest rate 5.956 % (Euro 1,05,866.61) (Previous balance is Rs.138.22 Lakhs , Interest rate 3.50 % (Euro 1,63,267.69)) is repayable in Sixteen Equated Quarterly Instalments of Euro 15,828 each starting from June, 2019 to March, 2023 and Balance of Euro 1,05,866.61 will be convert in INR in June, 2023.

(ii) FCTL - 5933FC0400000005 of Rs. 98.72 Lakhs having interest rate 6.508 %(Euro 1,10,164.66 ) (Previous balance is Rs. 143.15 Lakhs , Interest rate 3.50 %(Euro 1,69,091.29)) is repayable in Sixteen Equated Quarterly Installment of Euro 16,275 each starting from September, 2019 to June, 2023 and Balance of Euro 95,721.87 will be convert in INR in September, 2023.

(iii) FCTL - 5933FC0400000006 of Rs. 59.90 Lakhs having interest rate 3.25 % (Euro 66,848.93 ) (Previous balance is Rs. 92.81 , Interest rate 3.50% (Euro 1,09,631.53 )) is repayable in Forty Six Equated Monthly Installment of Euro 3,814 each starting from June, 2020 to March, 2024 and balance of Euro 22,626.40 will be convert in INR in April, 2024.

(iv) FCTL - 5933FC0400000007 of Rs. 151.54 Lakhs having interest rate 5.00 %(Euro 1,69,118.47 ) is repayable in Eight Equated Quarterly Installment of Euro 22,304 each starting from January, 2023 to October, 2024 and Balance of Euro 22,516.16 will be convert in INR in January, 2025.

(v) FCTL - 5933FC0400000008 of Rs. 156.87 Lakhs having interest rate 5.00 %(Euro 1,75,062.12 ) is repayable in Eight Equated Quarterly Installment of Euro 23,087 each starting from January, 2023 to October, 2024 and Balance of Euro 23,313.91 will be convert in INR in January, 2025.

(vi) Rupee Term Loan I (No. - 5933TL0100000177) of Rs. 116.34 Lakhs having interest rate 9.25 % (Previous balance Rs.181.98 Lakhs, Interest rate 7.00%) is repayable in Eighteen Equated Quarterly Installment of Rs. 19.57 Lakhs each starting from June, 2020 to September, 2024 and last installment of Rs. 9.22 Lakhs in December, 2024.

(vii) Rupee Term Loan II (No.-5933TL0100000216) of Rs. 48.87 Lakhs having interest rate 8.75 % (Previous balance Rs. 83.71 Lakhs, Interest rate 7.00%) is repayable in Forty Nine Equated Monthly Installment of Rs. 3.36 Lakhs each starting from June, 2020 to June, 2024 and last installment of Rs. 1.50 Lakhs in July, 2024.

(viii) Rupee Term Loan III (No.-5933TL0100000225) of Rs. 12.37 Lakhs having interest rate 9.10 %(Previous balance Rs. 20.32 Lakhs, Interest rate 7.00%) is repayable in Fifty One Equated Monthly Installment of Rs. 0.78 Lakhs starting from June, 2020 to August, 2024 and last installment of Rs. 0.047 Lakhs in September, 2024.

(ix) Rupee Term Loan IV (No.-5933TL0100000392) of Rs. 1,882.23 Lakhs having interest rate 8.95 % is repayable in Seventy Three Equated Monthly Installment starting from June, 2023 to July, 2029 and last installment of Rs. 26.967 Lakhs in August, 2029.

b2 Term Loan from HDFC Bank Limited

Term Loan from HDFC Bank Limited consists of Rupee Term Loan of Rs.1225.71 Lakhs (Previous balance Rs. 1541.14 Lakhs). Term loan from HDFC Bank Limited is secured by exclusive first charge by way of equitable mortgage of leasehold factory land admeasuring about 23,113 sq ft. situated at 3/2 Sector 1 Industrial Area, Pithampur, Dist. Dhar and Building measuring at 24,180 sq. ft. situated at 3/1 Sector 1 Industrial Area, Pithampur, Dist. Dhar It is further secured by exclusive first charge by way of equitable mortgage of leasehold factory land admeasuring about 4932 sq. ft. & building thereon at Plot No. 309, Sector 1, Industrial Area, Pithampur, Dist. Dhar (M.P.). The loan is further secured by Equitable Mortgage of the lease hold factory land admeasuring about 8745 sq. ft. and Building thereon at Plot No. S-2/1, Sector - 1, Pithampur Dist Dhar and hypothecation of entire machineries, electric installations, furniture and fixtures, office equipments and other movable fixed assets of the Company situated at the above mentioned all factories, present and future. The loan also secured by exclusive 1st charge by way of hypothecation of entire machineries, electrical installations and other movable fixed assets of the company, situated at PH No. 36, village Galihara, Tehsil Sitamau, District Mandsaur present and future.

The Term Loan is further secured by Personal Guarantee(s) of Shri Anil Choudhary, Managing Director and Smt Ranjana Choudhary, Whole Time Director of the Company and by Corporate Guarantee of Super Sack Pvt Ltd (Corporate Promoter of the Company).

There repayment is as -

(i) Rupee Term Loan I (No.-83511438) of Rs. 587.43 Lakhs having interest rate 9.25% (Previous balance is Rs. 731.99 Lakhs, interest rate 7.50%) is repayable in Eighty Eight Equated Monthly Installment of Rs. 16.42 Lakhs starting from June, 2020 to September, 2026 and last installment ofRs. 4.00 Lakhs in October, 2026.

(ii) Rupee Term Loan III (No.-85084592/ Solar ) of Rs. 160.11 Lakhs having interest rate 9.25% (Previous balance is Rs. 208.10 Lakhs interest rate 7.50%) is repayable in Sixty Two Equated Monthly Installment of Rs. 5.22 Lakhs starting from February, 2021 to March, 2026.

(iii) Rupee Term Loan IV (No.-85256245) of Rs. 323.23 Lakhs having interest rate 9.25% (Previous balance is Rs. 372.98 interest rate 7.50% ) is repayable in Eighty Nine Equated Monthly Installment ofRs. 6.45 Lakhs starting from June, 2021 to August, 2028.

(iv) Rupee Term Loan V (No.-450555362) GECL- 01 of Rs. 121.87 Lakhs having interest rate 9.25% (Previous balance is Rs. 146.79 Lakhs interest rate 7.50%) is repayable in Forty Nine Equated Monthly Installment of Rs. 4.62 Lakhs starting from September, 2022 to September, 2025 ( First Twelve Months Moratorium ).

b3 Term Loan from State Bank of India

(i) Loan under Guanteed Emergency Credit Line (GECL) by way of Working Capital Term Loan (WCTL) from State Bank of India Rs. 88.71 Lakhs (Trading Division) (Previous balance is Rs. 167.72 Lakhs) is secured by extension of charge over the existing primary and collateral securities and receivable created out of bank finance, Fixed Deposit and collaterally secured by Equitable Mortgage of leasehold factory land and building constructed thereon situated at Plot No. S-4/1, Sector - I, Pithampur, Dhar (M.P.) and further secured by personal guarantee of Shri Anil Choudhary, Managing Director and Smt Ranjana Choudhary, Director ofthe Company. Rupee Term Loan GECL Trading Division (No.- 00000039692366967) of Rs. 88.71 Lakhs Having interest rate 9.25 %(Previous balance is Rs. 167.72 Lakhs, Interest rate 7.40%) is repayable in Thirty Six Monthly Installment of Rs. 6.54 Lakhs starting from September, 2021 to August, 2024 (First Twelve Months Moratorium).

(ii) Loan under Guanteed Emergency Credit Line (GECL) by way of Working Capital Term Loan (WCTL) from State Bank of India Rs. 334.93 Lakhs having interest rate is 9.25%(Previous balance is Rs. 416 Lakhs, Interest Rate 7.40% ) is secured by extension of charge over the existing primary and collateral securities and receivable created out of bank finance, Fixed Deposit and collaterally secured by Equitable Mortgage of leasehold factory land and building constructed thereon situated at Plot No. S-4/1, Sector - I, Pithampur, Dhar (M.P.) and further secured by personal guarantee of Shri Anil Choudhary, Managing Director and Smt. Ranjana Choudhary, Director of the Company.

Rupee Term Loan GECL Unit-01 (No.- 00000040365831307) of Rs. 334.93 Lakhs Having interest rate 9.25 %(Previous balance is 416 Lakhs, Interest Rate 7.40 %) is repayable in Thirty Six Monthly Installment of Rs. 11.55 Lakhs starting from August, 2022 to July, 2025 (First Twelve Months Moratorium). b4 Other Term Loans

(i) Term Loan (Car Loan) from ICICI Bank Limited of Rs. 3.42 Lakhs having interest rate 8.66 %(Previous balance Rs. 8.91 Lakhs Interest rate 8.66%) is repayable in Thirty Six equated monthly instalment of Rs. 0.50 Lakhs each commencing from November, 2020 to October, 2023. Secured by hypothecation of Eicher Truck.

(ii) Term Loan (Car Loan- 1327) from Bank of Baroda of Rs. 34.42 Lakhs having interest rate 9.85 % (Previous balance Rs. 40.33 Lakhs Interest rate 7.35%) is repayable in Eighty Three equated monthly instalment of Rs. 0.76 Lakhs each commencing from August,

2020 to June, 2027 and last installment of Rs. 4.17 Lakhs in July, 2027. The term loan is secured by hypothecation of vehicle Volvo S-90.

(iii) Term Loan (Car Loan- 1756) from Bank of Baroda of Rs. 22.61 Lakhs having interest rate 9.85 % (Previous balance is 25.45 Lakhs, Interest Rate 7.35%) is repayable in Eighty Three equated monthly instalment of Rs. 0.41 Lakhs each commencing from October,

2021 to August, 2028 and last installment of Rs. 3.29 Lakhs in September, 2028. The term loan is secured by hypothecation of Innova Car.

(iv) Term Loan (Car Loan- 1952) from Bank of Baroda of Rs. 18.34 Lakhs having interest rate 9.6 % (Previous balance is Nil) is repayable in Eighty Three equated monthly instalment of Rs. 0.31 Lakhs each commencing from June, 2022 to April, 2029 and last installment of Rs. 2.58 Lakhs in May, 2029. The term loan is secured by hypothecation of XUV700 Car.

Other Information Terms of Repayments of loan

Kotak Mahindra Bank Limited

Working Capital Loan from Kotak Mahindra Bank Limited of Rs. 1370.78 Lakhs having interst rate 8.45% (Previous balance Rs. 3223.11 Lakhs interest rate 6.50%) is secured by first and exclusive hypothecation charge on all existing and future receivables/ current assets/ movable assets/ movable fixed assets of the Borrower (excluding assets (vehicles) financed by other banks/FIs) of Unit I, SEZ and Techtex. It is further secured by exclusive mortgage on following properties-

(a) Property situated at S-4/3, S-4/2 & S-4/3A, Sector - I, Pithampur, District Dhar (M.P.) consisting of leasehold land and building thereon. (b) Property situated at Plot No. 15, 16, 17 and 18 Special Economic Zone, Pithampur, District Dhar (M.P.) consisting of leasehold land and building thereon. (c) Property situated at Plot No. 40-45, Shalimar Residency, Mhow, Indore consisting of freehold land and building thereon. (d) Property situated at Block A & B of office premises at 3-4 Jaora Compound, MYH Road, Indore. (e) Property at Plot No. A-12 & A-13 at SEZ Pithampur Phase 2 Dhar, (M.P.) in the name of Commercial Syn Bags Limited (Leasehold Land).

The Working Capital Loan is also guaranteed by Shri Anil Choudhary Managing Director, Smt Ranjana Choudhary, Whole Time Director ofthe Company and Corporate Guarantee of Super Sack Pvt Ltd (Corporate Promoter ofthe Company).

HDFC Bank Limited

Working Capital Loan from HDFC Bank Limited of Rs. 516.54 Lakhs having interest rate 9.25% (Previous balance Rs. 476.53 Lakhs, Interest Rate 7.00%) is primarily secured by hypothecation of Plant and Machinery, Stock, Book Debts, FD of Unit - II and collaterally secured by Equitable Mortgage of property at Plot No. S-2/1, 3/1,3/2 Sector - I, Pithampur, Dhar (M.P.) consisting of leasehold land and building thereon.

State Bank of India

Working Capital Loan from State Bank of India of Rs. 154.33 Lakhs (Previous balance Rs. 382.13 Lakhs) is secured by first charge by way of hypothecation of company’s stock/ receivable created out of bank finance, Fixed Deposit and collaterally secured by Equitable Mortgage of leasehold factory land and building constructed thereon situated at Plot No. S-4/1, Sector -I, Pithampur, Dhar (M.P.) and further secured by personal guarantee of Shri Anil Choudhary, Managing Director and Smt Ranjana Choudhary, Whole Time Director ofthe Company.

a. Nature of Grant : The Company has entered into MOU for execution of projects under Deen Dayal Upadhyaya Grameen Kaushalaya Yojna (DDU-GKY) Guidelines july 2016, (as may be amended from time to time the skill training and placement programme of the ministry of rural development (MoRD). Grants-in Aid is provided to the Company for the execution of aforsaid purpose

Other Information

i) The invoicing schedules agreed with customers include periodic performance based payments and milestone based progress payments. Invoices are payable within contractually agreed credit period.

ii) Judgement made in evaluating when a customer obtains control - Generally customer obtains control when the goods are delivered to the customer in case of C.I.F Sales and in case of F.O.B Sales when the cargo reaches the loading port.

All eligible employees of the Company in India are entitled to receive benefits under the provident fund plan. The Company makes provident fund contribution, a defined contribution plan, for qualifying employees. It also contributes to employee state insurance corporation, which is also defined contribution plan. The Company recognised Rs. 168.25 lakhs (Previous Year : 148.06 lakhs) and Rs. 78.46 lakhs ( Previous Year : Rs. 79.54 lakhs) respectively for PF and ESIC contribution in statement of profit and loss Provident fund and ESIC are managed through government administered funds.

Defined benefit plans ofthe Company comprises Gratuity

The gratuity plan provides for a lump sum payment to vested employees at retirement, death while in employment or on termination of employment.

The Company has opted the Employee Group Gratuity Scheme ofthe insurance service provider Life Insurance Corporation of India ("LIC") . Payments for Gratuity are funded through investments with Life Insurance Corporation of India.

The Company’s investment strategy in respect of its funded plans is implemented within the framework of the applicable statutory requirements. The plans expose the Company to a number of actuarial risks such as investment risk, interest rate risk, longevity risk and inflation risk. The Company has developed policy guidelines for the allocation of assets to different classes with the objective of controlling risk and maintaining the right balance between risk and long-term returns in order to limit the cost to the Company of the benefits provided.

The Company makes annual contribution to the Employee''s Group Gratuity Cum Life Assurance Scheme of the Life Insurance Corporation of India, a funded benefit plan for qualifying employees. The Scheme provides for lump sum payment to vested employees at retirement, death while in employment or on termination of employment of an amount equivalent to 15 days salary payable for each completed year of service or part thereof in excess of six months. Vesting occurs upon completion of five years of service.

The figures of present value ofthe defined benefit obligation and the related current service cost were as measured and provided to us by a consulting actuary.

The expected contributions for Defined Benefit Plan for the next financial year will be in line with FY 2022-23.

35 Contingent Liabilities and Commitments (to the extent not provided for)		(Rupees In Lakhs)
Particulars	31st March, 2023	31st March, 2022
(i) Contingent liabilities
(a) Claims against the company not acknowledged as debt	186.69	211.16
(b) Guarantees excluding financial guarantees	1,053	1,053
(c) Other money for which the company is contingently liable (ii) Commitments
(a) Estimated amount of contracts remaining to be executed on capital account and not provided for (Refer note no. 3 for capital commitments)	190.48
(b) Uncalled liability on shares and other investments partly paid	-	-
(c) Other commitments	-	-

In respect of Sales Tax

Demands amounting to Rs. 182.19 lakhs ( Previous Year 209.18 Lakhs) have been raised by the Indirect Tax Authorities which is contested by the company based on management evaluation and legal advice of tax consultants. Based on legal advice that these amounts would get deleted or substantially reduced, the Company has not recognised these as liabilities.

36 Additional Regulatory Information-

(i) Immovable Properties (other than properties where the company is the lessee and the lease agreements are duly executed

in favour of the lessee) whose title deeds are not held in the name of the company and where such immovable property is jointly held with others, details are given to the extent of company''s share. - The Company has no such immovable properties

(iv) There is no Intangible assets under development.

(v) No proceedings have been initiated or pending against the company, under Prohibition of Banami Property Transaction Act.

(vi) The company has borrowings from the bank or financial institutions on the basis of security of current assets.

(vii) Quarterly returns or assessments of current assets filed by the company with banks or financial institutions are not in agreement with books of accounts. Following are the summary of reconciliation and reasons of material discrepancies-

Reason for Differences:

Inventory : Inventory is valued as per companies accounting policy, at the time of finalisation of financial statements whereas the same is taken on estimated basis for submission before bank.

Trade Receivables :

Difference in trade receivables is due to following reasons -

a. Recognition of revenue and trade receivables is made as per principles of Ind AS 115 at the time of finalisation of financial statements. Whereas trade receivables are reported to banks without applying principles of Ind AS 115.

b. Making of adhoc loss allowance when submitting statements to the bank while loss allowance as per IND AS 109 is made while finalising financial statements.

(viii) The company was not declared wilful defaulter by any Bank/Financial Institution/other lender.

(ix) Relationship with struck off Companies- Nil/None

(x) Registration of charges or satisfaction with Registrar of Companies- No charge registration or satisfaction was pending on the date of balance-sheet.

(xi) Compliance with number of layers of companies- The Company has complied with laws in respect of number of layers of companies.

(xii) Details of Crypto Currency or virtual currency- Nil Details of items of exceptional and extraordinary nature- Nil

(xiii) The company has not surrendered or disclosed any amount as income during the year in the tax assessment under the Income Tax Act,1961.

38 Segment Information

i. The Company has determined following reporting segments based on the information reviewed by the Company’s Chief Operating Decision Maker (‘CODM’):

a. Manufacturing segment - Business of manufacture and sale of FIBC, Jumbo bags, Poly Tarpauline, Woven Sacks / Bags, Box Bags, PP / HDPE Fabric, Liner and Flexible Packaging which mainly have same risks and returns.

b. Trading segment - Trading of Granule ( Del credre agent cum Consignment Stockiest)

Power generated from solar power is captively consumed. The solar power generation segment is integral part of manufacturing segment.

The above business segments have been identified considering :

a. the nature of products and services

b. the differing risks and returns

c. the internal organisation and management structure, and

d. the internal financial reporting systems.

ii. The Company''s Chief operating Decision maker is Managing Director and Chief Executive Officer.

iii. The accounting policies adopted for segment reporting are in line with the accounting policy of the Company with following additional policies for segment reporting.

(a) Revenue and Expenses have been identified to a segment on the basis of relationship to operating activities of the segment. Revenue and Expenses which relate to enterprise as a whole and are not allocable to a segment on reasonable basis have been disclosed as “Unallocable”.

(b) Segment Assets and Segment Liabilities represent Assets and Liabilities in respective segments. Tax related assets and other assets and liabilities that cannot be allocated to a segment on reasonable basis have been disclosed as “Unallocable”.

Other Information

1 Remuneration paid to Key Managerial Person

The above figures do not include provisions for gratuity as separate actuarial valuation are not available and the cost to develop it would be excessive.

The contributions to defined contribution plans for key management personnel in respect of Provident fund is Rs. 0.86 lakhs (Previous Year : Rs. 0.86 lakhs)

2 Terms and Conditions for Outstanding Balances:

The balances are unsecured and would be settled in money.

3 Guarantee Given or Received by or to any Related Party

The Working Capital Loan of Rs. 1370.78 Lakhs is guaranteed by Shri Anil Choudhary (Managing Director) and Smt Ranjana Choudhary (Whole Time Director).

40 Corporate Social Responsibility (CSR)

(a) CSR amount required to be spent as per Section 135 of the Companies Act, 2013 read with Schedule VII there of by the company during the year is Rs. 33.28 Lakhs (Previous Year Rs. 29.37 Lakhs).

(b) Expenditure related to Corporate Social Responsibility is Rs. 34.60 Lakhs (Previous Year Rs. 17.99 Lakhs)

41 Research & Development

The company conducts its R&D initiatives within the broad framework of innovation initiatives.

The company purchased technologically upgraded Circular Loom, Stitching Machine, Ultrasonic Cutting and Sealing Machine, for its units.

42 Disclosures pursuant to Regulation 34 (3) of Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 and Section 186 of the Companies Act, 2013

44 d. Financial Risk Management

The Company is exposed primarily to market risks being fluctuations in foreign currency exchange rates and interest rate, and other risks namely credit and liquidity risks, which may adversely impact the fair value of its financial instruments. The Company has constituted a Risk Management Committee, which is responsible for developing and monitoring the Company’s risk management Committee, which is responsible for developing and monitoring the Company’s risk management policies. The Company has a risk management policy which covers risks associated with financial assets and liabilites. The focus of risk management committee is to assess the unpredictability of the financial environment and to mitigate the potential adverse effects on the financial performance ofthe Company.

dl. Management of Market Risk

The Company’s size and operations result in it being exposed to the following market risks that arise from its use of financial instruments:

d2. Foreign Currency Exchange Rate Risk

The fluctuation in foreign currency exchange rates may have potential impact on the statement of profit and loss and other comprehensive income and equity, where any transaction references more than one currency or where assets / liabilities are denominated in a currency other than the functional currency ofthe company.

The Company as per its risk management policy, uses derivative instruments primarily to hedge foreign exchange.

The foreign exchange rate sensitivity is calculated by aggregation of the net foreign exchange rate exposure and a simultaneous parallel foreign exchange rates shift of all the currencies by 1% against the functional currency ofthe Company.

d3. Interest Rate Risk

The Company is also exposed to interest rate risk, changes in interest rates will affect future cash flows or the fair values of its financial instruments, principally debt. Any movement in the reference rates could have an impact on the Company’s cash flows as well as costs. The Company is subject to variable interest rates on some of its interest bearing liabilities.

d4. Management Of Credit Risk

Credit risk is the risk that a customer or counter party to a financial instrument fails to perform or pay the amount according to the contractual terms or obligations causing financial loss to the Company

Credit risk encompasses of risk of default, risk of deterioration of creditworthiness as well as concentration of risks.

Credit risk is controlled by analysing credit limits and creditworthiness of customers of a continuous basis to whom the credit has been granted.

Exposure to Credit Risk

The carrying amount of financial assets represents the maximum credit exposure.

The maximum exposure to credit risk is Rs 5442.57 lakhs ( Rs 6322.85 lakhs in preceding year) being the total of carrying amount of trade receivables, balance with banks, bank deposits and other financial assets.

Trade receivables

Concentration of credit risk with respect to trade receivables are limited, due to the Company’s customer base being large and diverse. All trade receivables are reviewed and assessed for default on a quarterly basis.

Other financial assets

The Company maintains exposure in bank balances and term deposits with banks. Considering insignificant amounts and short term nature, there is no significant risks pertaining to these assets.

d5. Management of Liquidity Risk

Liquidity risk arises from the Company’s inability to meet its cash flow commitments on the due date.

The Company has obtained fund and non-fund based working capital lines from various banks. Furthermore, the Company have access to undrawn lines of committed and uncommitted borrowing/ facilities

The Company has maintained a cautious liquidity strategy, with a positive cash balance throughout the year ended 31st March, 2023 and 31st March, 2022. Cash flow from operating activities provides the funds to service and finance the financial liabilities on a day-to-day basis.

The following table shows a maturity analysis of the anticipated cash flows including interest obligations for the Company’s non-derivative financial liabilities on an undiscounted basis, which therefore differ from both carrying value and fair value.

The Board of Directors have constituted a Risk Management Committee to frame, implement and monitor the risk management plan of the company which inter alia covers risks arising out of exposure of foreign currency fluctuations.

The company uses various derivative instruments such as foreign exchange forward in which the counter party is generally the bank.

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Mar 31, 2018

1 Corporate Information

Commercial Syn Bags Limited (the "Company") is a public limited company domiciled in India with its registered office located at ''Commercial House'', 3-4 Jaora Compound, MYH Road, Indore [M.P.] The company was incorporated on 10th December, 1984. The company is listed on BSE SME Exchange. The company is the manufacturer and exporters of FIBC, Bulk Bags, Poly Tarpaulin, Woven Sacks/Bags, Box Bags, PP/HDPE Fabric, Liner and Flexible Packaging. The company has installed the solar power generating system at Village Galihara, Dharakhedi, Tehsil Sitamau and Dist Mandsaur for generation of electricity for captive consumption in its own manufacturing units. The company has undertaken trading of granules (DCA cum consignment stockiest) of ONGC Petro additions Limited (OPaL).

(f) Terms/rights attached to equity shares :

The company has only one class of equity shares having a par value of Rs. 10/- per share. Each holder of equity shares is entitled to one vote per share. 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.

(g) Bonus Shares

The company has allotted 64,69,050 fully paid up Equity Shares of face value of Rs.10/ each during the financial year 2015-2016 pursuant to the bonus issue approved by the shareholders at their Extraordinary General Meeting held on 15th March, 2016 in the ratio of 3 equity shares for every 1 Equity Share held on record date. The record date fixed by the Board of Directors for issue of Bonus Shares was 15th March, 2016. Except this the Company has not made any allottment of shares as Bonus Shares during the period of five years immediately preceding the date as at which the Balance Sheet is prepared.

Term loans from Bank of India (balance v 10,69,82,649) and working capital loan is secured by exclusive charge by way of hypothecation of entire stock of inventory, receivable, bills and other chargeable current assets of the company, both present and future, lying at business place at factory location or elsewhere and for cash credit SEZ Unit exclusive charge by way of hypothecation of entire stock of inventory, receivables, bills and other chargeable current assets of the Company, both present and future lying at business place at factory location or elsewhere. Also secured by first charge over fixed assets of the company including factory land and building situated at S-4/3, S-4/2 and S-4/3A Pithampur, Sector I, Dist. Dhar on unit No.I and also secured by first charge by way of hypothecation over (company''s Unit - I) Plant and Machineries and other movable fixed assets of the company and also secured by exclusive charge by way of EQM over company''s staff quarters situated at plot No. 40 to 45, Shalimar Residency, Mhow, Dist. Indore and exclusive charge by way of EQM over company''s lease hold land (SEZ Unit) situated at Plot No. 15,16 and 17 Special Economic Zone, Pithampur, District Dhar (MP) and exclusive charge by way of EQM over company''s factory building (SEZ Unit constructed on Plot No. 15, 16 and 17 Special Economic Zone, Pithampur, District Dhar (MP) and further secured by exclusive charge by way of hypothecation over company''s SEZ Unit''s Plant and Machineries proposed to be acquired by the company from Term Loan and exclusive charge by way of hypothecation over company''s SEZ Unit''s Furniture and Fixtures proposed to be acquired by the company from Term Loan and collaterally and exclusively secured by equitable mortgage of Block A and B of office premises situated at 3-4 Jaora Compound, Indore belonging to company and also collaterally secured by exclusive charge by way of EQM of leasehold plot no B-18 at Special Economic Zone, Phase-I, Pithampur, District Dhar (Indore) MP admeasuring 3825.70 square meter alloted by MP Audyogik Kendra Vikas Nigam (Indore) Limited (MPAKVN) to the company and colleterally secured by second charge over Fixed Assets of the company including Factory Land and Building situated at S-4/3, S-4/2 and S-4/3A, Pithampur, Sector - 1, District Dhar on Unit - I and exclusive second charge by way of hypothecation over (company''s Unit - I) Plant and Machineries and other movable fixed assets of the company and also by exclusive second charge by way of EQM over company''s staff quarters situated at Plot No. 40 to 45, Shalimar Residency, Mhow Dist Indore and exclusive charge by way of EQM over company''s lease hold land (SEZ Unit) building and hypothecation on Plant and Machineries, Furniture and Fixtures situated at Plot No. 15, 16 and 17 Special Economic Zone, Pithampur Dist Dhar M.P. Term loans and working capital loans are also personally guaranteed by Shri Anil Choudhary (MD), Smt. Ranjana Choudhary, Director of the company, Shri Pradeep Kumar Agrawal, Shri Shambhu Dayal Garg and Shri Ashok Kumar Agrawal and Corporate Guarantee of Super Sack Private Limited.

Term loan from Bank of Baroda (balance Rs.4,35,97,074) and working capital is secured by exclusive first charge by way of equitable mortgage of leasehold factory land admeasuring about 2247.75 meters, situated at plot No. S-3/1, Sector 1 Industrial Area, Pithampur, Dist. Dhar Regd. A-1/1930 dated 17/09/09 standing in the name of company and hypothecation of entire machinery, electrical installation, furniture and fixtures, office equipments and other movable fixed assets of the company, situated at the above mentioned factories, present and future. It is further secured by exclusive first charge by way of equitable mortgage of leasehold factory land admeasuring about 929 sq mtrs & building thereon at Plot No. 309, Sector 1, Industrial Area, Pithampur, Dist. Dhar (M.P.) and Factory Building constructed thereon and standing in the name of the company and hypothecation of entire machineries, electrical installations, furniture & fixtures, office equipments and other movable fixed assets of the company, situated at the abovementioned factories present and future. The loan is further secured by Equitable Mortgage of the lease hold factory land admeasuring about 7,800 sq ft (724.91 sq m) and Building to be constructed thereon at Plot No. S-2/1, Sector - 1, Pithampur Dist Dhar and hypothecation of entire machineries, electric installations, furniture and fixtures, office equipments and other movable fixed assets of the Company, situated at the abovementioned factories, present and future. The loan is further secured by exclusive 1st Charge by way of hypothecation of entire machineries, electrical installtion, furniture and fixtures, office equipments and other movable fixed assets of the company situated at the above mentioned factories present and future. Exclusive 1st charge by way of hypothecation of entire machineries, electrical installations, furniture and fixtures, office equipments and other movable fixed assets of the company, situated at PH No. 36, village Galihara, Tehsil Sitamau, District Mandsaur present and future. The loan is further secured by exclusive 1st charge by way of hypothecation of entire raw materials, stock in process, stores and spares, packing materials, finished goods and book-debts of the company (Unit - II & Unit - III), both present and future. The term loan and working capital is guaranteed by Shri Anil Choudhary (MD), Smt. Ranjana Choudhary, Director of the company, Pradeep Kumar Agrawal and Ashok Kumar Agrawal and Corporate Guarantee of Super Sack Private Limited.

Bank of India Term Loan (Balance Rs.16,30,268) is secured by hypothecation of one Skoda Octavia car. The principal amount is repayable in 84 monthly installments of varying amounts from Rs.17,263 to Rs.34,667. Last installment is payable in Feb 2023. There is no continuing default in repayment of loan or interest.

Bank of India Term Loan (Balance Rs.2,18,247 ) is secured by hypothecation of one Maruti Omni Ambulance. The principal amount is repayable in 60 monthly installments of varying amounts from Rs.3,795 to Rs.6,212. Last installment is payable in August 2021. There is no continuing default in repayment of loan or interest.

Bank of India Term Loan (Balance Rs.3,45,152) is secured by hypothecation of one Mahindra Bolero Maxi Truck Plus. The principal amount is repayable in 84 monthly installments of varying amounts from Rs.3,436 to Rs.6,882. Last installment is payable in August 2023. There is no continuing default in repayment of loan or interest.

Bank of India Term Loan (Balance Rs.5,35,203 ) is secured by hypothecation of one Maruti Vitara Brezza car. The principal amount is repayable in 60 monthly installments of varying amounts from Rs.9,185 to Rs.14,487. Last installment is payable in November 2021. There is no continuing default in repayment of loan or interest.

There is no continuing default in repayment of any loan and interest of any bank.

Particulars of Term Loan from Bank of India (Balance Rs.10,69,82,649)

Term loan No. I from Bank of India (balance on 31-03-18 Rs.38,00,000 is repayable from Dec 13 comprising of first 6 installments of Rs.8.00 Lakhs each and remaining 16 installments of Rs. 9.50 Lakhs each. Term loan No. II from Bank of India (balance on 31-03-18 Rs.10,31,82,649) is repayable in quarterly installments comprising first 7 installments of Rs.60.00 Lakhs each, next 16 instalments of Rs.76.00 Lakhs each and the remaining 3 installments of Rs. 88.00 Lakhs each commencing from March, 2018

Particulars of Term Loan from Bank of Baroda (Balance Rs.4,35,97,074)

Term Loan I from Bank of Baroda (Balance on 31-03-18 Rs.24,99,610) is repayable in 22 quarterly installments being first 12 installment of Rs.1.75 Lakhs each, 9 installment of Rs. 9.90 Lakhs & Last installment of Rs.5.90 Lakhs each. Term Loan II from Bank of Baroda (Balance on 31-03-18 Rs.1,09,72,952) is repayable in 28 quarterly installments being first 5 installments of Rs. 4.50 Lakhs each, 8 installments of Rs. 6.75 Lakhs each, 8 installments of Rs. 9.00 Lakhs each, 4 installments of Rs. 10.125 Lakhs each and last 3 quaterely installments of Rs. 12.00 Lakhs each commencing from 28th Feb, 2015. Term Loan III from Bank of Baroda (Balance on 31-03-18 Rs. 1,89,84,039) is repayable in 7 years including 15 months moratorium period with 23 graded quarterly installments commencing after initial moratorium of 15 months from the date of 1st disbursement. The repayment will be in 4 quarterly installments of Rs. 4.06 Lakhs each, 4 quarterly installments of Rs. 8.13 Lakhs each, 4 quarterly installments of Rs. 12.19 Lakhs each, 4 quarterly installments of Rs. 20.31 Lakhs each, 4 quarterly installments of Rs. 20.31 Lakhs each and 3 quarterly installments of Rs. 21.67 Lakhs each commencing from 31st December 2016). Term Loan (Solar) from Bank of Baroda (Balance on 31-03-18 Rs. 1,11,40,473) is repayable in 10 years including 6 months moratorium period with 38 graded quarterly installments commencing from 31st July, 2017. The repayment will be in 3 quarterly installments of Rs. 5.60 Lakhs each, 4 quarterly installments of Rs. 6.30 Lakhs each, 4 quarterly installments of Rs. 7.35 Lakhs each, 4 quarterly installments of Rs. 8.93 Lakhs each, 4 quarterly installments of Rs. 10.50 Lakhs each, 4 quarterly installments of Rs. 12.08 Lakhs each, 4 quarterly installments of Rs. 13.65 Lakhs each, 4 quarterly installments of Rs. 14.70 Lakhs each, 4 quarterly installments of Rs. 14.70 Lakhs each and 3 quarterly installments of Rs. 16.80 Lakhs each, last installment is payable on 31st October, 2026.

In case of all unsecured loans, there is no repayment schedule. Therefore there is no continuing default in repayment of any loan or interest.

Working Capital Loan from Bank of India (balance Rs. 17,85,77,047) is also secured together with term loan (balance Rs. 10,69,82,649 as mentioned in Note No. 5) by exclusive charge by way of hypothecation of entire stock of inventory, receivable, bills and other chargeable current assets of the company, both present and future, lying at business place at factory location or elsewhere and for cash credit SEZ Unit exclusive charge by way of hypothecation of entire stock of inventory, receivables, bills and other chargeable current assets of the Company, both present and future lying at business place at factory location or elsewhere. Also secured by first charge over fixed assets of the company including factory land and building situated at S-4/3, S-4/2 and S-4/3A Pithampur, Sector I, Dist. Dhar on unit No.I and also secured by first charge by way of hypothecation over (company''s Unit - I) Plant and Machineries and other movable fixed assets of the company and also secured by exclusive charge by way of EQM over company''s staff quarters situated at plot No. 40 to 45, Shalimar Residency, Mhow, Dist. Indore and exclusive charge by way of EQM over company''s lease hold land (SEZ Unit) situated at Plot No. 15,16 and 17 Special Economic Zone, Pithampur, District Dhar (MP) and exclusive charge by way of EQM over company''s factory building (SEZ Unit constructed on Plot No. 15, 16 and 17 Special Economic Zone, Pithampur, District Dhar (MP) and further secured by exclusive charge by way of hypothecation over company''s SEZ Unit''s Plant and Machineries proposed to be acquired by the company from Term Loan and exclusive charge by way of hypothecation over company''s SEZ Unit''s Furniture and Fixtures proposed to be acquired by the company from Term Loan and collaterally and exclusively secured by equitable mortgage of Block A and B of office premises situated at 34 Jaora Compound, Indore belonging to company and also collaterally secured by exclusive charge by way of EQM of leasehold plot no B-18 at Special Economic Zone, Phase-I, Pithampur, District Dhar (Indore) MP admeasuring 3825.70 square meter alloted by MP Audyogik Kendra Vikas Nigam (Indore) Limited (MPAKVN) to the company and colleterally secured by second charge over Fixed Assets of the company including Factory Land and Building situated at S-4/3, S-4/2 and S-4/3A, Pithampur, Sector - 1, District Dhar on Unit - I and exclusive second charge by way of hypothecation over (company''s Unit - I) Plant and Machineries and other movable fixed assets of the company and also by exclusive second charge by way of EQM over company''s staff quarters situated at Plot No. 40 to 45, Shalimar Residency, Mhow Dist Indore and exclusive charge by way of EQM over company''s lease hold land (SEZ Unit) building and hypothecation on Plant and Machineries, Furniture and Fixtures situated at Plot No. 15, 16 and 17 Special Economic Zone, Pithampur Dist Dhar M.P. Term loans and working capital loans are also personally guaranteed by Shri Anil Choudhary (MD), Smt. Ranjana Choudhary, Director of the company, Shri Pradeep Kumar Agrawal, Shri Shambhu Dayal Garg and Shri Ashok Kumar Agrawal and Corporate Guarantee of Super Sack Private Limited.

Working Capital from Bank of Baroda (balance Rs. 3,14,82,190) is also secured together with term loan (balance Rs. 4,35,97,074 as mentioned in Note. No. 5) by exclusive first charge by way of equitable mortgage of leasehold factory land admeasuring about 2247.75 meters, situated at plot No. S-3/1, Sector 1 Industrial Area, Pithampur, Dist. Dhar Regd. A-1/1930 dated 17/09/09 standing in the name of company and hypothecation of entire machinery, electrical installation, furniture and fixtures, office equipments and other movable fixed assets of the company, situated at the above mentioned factories, present and future. It is further secured by exclusive first charge by way of equitable mortgage of leasehold factory land admeasuring about 929 sq mtrs & building thereon at Plot No. 309, Sector 1, Industrial Area, Pithampur, Dist. Dhar (M.P.) and Factory Building constructed thereon and standing in the name of the company and hypothecation of entire machineries, electrical installations, furniture & fixtures, office equipments and other movable fixed assets of the company, situated at the abovementioned factories present and future. The loan is further secured by Equitable Mortgage of the lease hold factory land admeasuring about 7800 sq ft (724.91 sq m) and Building to be constructed thereon at Plot No. S-2/1, Sector - 1, Pithampur Dist Dhar and hypothecation of entire machineries, electric installations, furniture and fixtures, office equipments and other movable fixed assets of the Company, situated at the abovementioned factories, present and future. The loan is further secured by exclusive 1st Charge by way of hypothecation of entire machineries, electrical installtion, furniture and fixtures, office equipments and other movable fixed assets of the company situated at the above mentioned factories present and future. Exclusive 1st charge by way of hypothecation of entire machineries, electrical installations, furniture and fixtures, office equipments and other movable fixed assets of the company, situated at PH No. 36, village Galihara, Tehsil Sitamau, District Mandsaur present and future. The loan is further secured by exclusive 1st charge by way of hypothecation of entire raw materials, stock in process, stores and spares, packing materials, finished goods and book-debts of the company (Unit - II & Unit - III), both present and future. The term loan and working capital is guaranteed by Shri Anil Choudhary (MD), Smt. Ranjana Choudhary, Director of the company, Pradeep Kumar Agrawal and Ashok Kumar Agrawal and Corporate Guarantee of Super Sack Private Limited.

Working Capital from HDFC Bank Limited (balance Rs. 1,16,97,985 is primarly secured by all the stock and book debts of Trading Division and collaterally secured by Equitable Mortgage of Plot No. S-4/1, Industrial Area, Pithampur, Sector - I, Dhar. The loan is further secured by personal guarantee of Mr. Anil Choudhary and Mrs. Ranjana Choudhary, Directors of the company

The company has provided performance guarantee for 3 years to The Mission Director UP Skill Development Society, Lucknow for R 62,50,000 from Bank of India. This performance guarantee is provided as per the condition of skill development project under DDU-GKY. This performance guarantee is issued against the lien of Fixed Deposit Receipt (Account No. 880045110012462) of Rs. 62,50,000 made with Bank of India.

The company makes provident fund Contributions, a defined contribution plan, for qualiying employees. It also contributes to Employees State Insurance Corporation, which is also defined contribution plan. The company recognised Rs. 57,22,197/- and Rs. 50,77,459/respectively for PF and ESI contributions in Statement of Profit and Loss.

The company makes annual contribution to the Employee''s Group Gratuity Cum Life Assurance Scheme of the Life Insurance Corporation of India, a funded benefit plan for qualifying employees. The Scheme provides for lump sum payment to vested employees at retirement, death while in employment or on termination of employment of an amount equivalent to 15 days salary payable for each completed year of service or part thereof in excess of six months. Vesting occurs upon completion of five years of service.

The figures of present value of the defined benefit obligation and the related current service cost were as measured and provided to us by Life Insurance Corporation Of India.

2. Previous year figures have been regrouped or rearranged wherever necessary to confirm to current year''s classification and make them comparable.

3. In the opinion of the board, all Current Assets, Loans & Advances have a value on realisation in the ordinary course of business at least equal to the amount at which these are stated.

4. The balances of Debtors, Creditors, Advances and Liabilities are subject to confirmation and consequential adjustment, if any.

5. Intimation have not been received form any "Supplier" regarding their status under the Micro, Small and Medium Enterprises Act 2006 and hence following information is treated as NIL

(a) the principal amount and the interest due thereon remaining unpaid to any supplier as at the end of each accounting year.

(b) the amount of interest paid by the buyer in terms of section 16 of The Micro, Small and Medium Enterprises Development Act, 2006, along with the amount of the payment made to the supplier beyond the appointed day during each accounting year.

(c) the amount of interest due and payable for the period of delay in making payment (which have been paid but beyond the appointed day during the year) but without adding the interest specified under the Micro, Small and Medium Enterpirses Development Act 2006

(d) the amount of interest accrued and remaining unpaid at the end of each accounting year; and

(e) the amount of further interest, remaining due and payable even in the succeding years, untill such date when the interest dues as above are actually paid to the small enterprise, for the purpose of disallowance as a deductible expenditure under section 23 of the Micro, Small and Medium Enterprises Development Act, 2006.

6. Segment Reporting

a) Primary Segment (by Business Segment):

Based on the guiding principles given in Accounting Standards on Segment Reporting (AS - 17) the company is primarily in the business of manufacture and sale of FIBC, Bulk Bags, Poly Tarpaulin, Woven Sacks/Bags, Box Bags, PP/HDPE Fabric, Liner and Flexible Packaging which mainly have similar risk and returns. The company has undertaken Trading of Granules (DCA cum Consignment Stockiest) segment during the year under review. The company has identified following segments as Reportable Business Segments:

01. Manufacture and sale of FIBC, Bulk Bags, Poly Tarpaulin, Woven Sacks/Bags, Box Bags, PP/HDPE Fabric, Liner and Flexible Packaging

b) Secondary Segment (by Geographical demarcation)

i) The secondary segment is based on geographical demarcation i.e. in India and outside India.

7. As regards gratuity, the Company is under the Employee Group Gratuity Scheme of the Life Insurance Corporation of India ("LIC") . However, the Company does not have a certificate either from "LIC" or any other source to the effect that the contribution so made has been worked out by a qualified actuary in accordance with AS-15 (Revised 2005). The acturial assumption in respect of discount rate for above working used at the balance sheet date is 8%. As regards compensated absences, the Company has policy for encashment of leaves (which is compulsorily paid within one year from the end of the financial year) standing to the credit of the employees on cash basis.

8. The Company has entered into Forward Exchange Contracts, being derivatives instruments for hedge purpose and not intended for trading or speculation purpose, to establish the amount of currency in Indian Rupees required or available at the settlement date of certain payables and receivables. The following are the outstanding Forward Exchange Contracts entered into by the Company:

9. Corporate Social Responsibility (CSR)

(a) CSR amount required to be spent as per Section 135 of the Companies Act, 2013 read with Schedule VII thereof by the company during the year is Rs. 15.40 Lakhs (Previous Year Rs. 13.86 Lakhs). The company is having unspent amount of Rs. 29.49 Lakhs upto Previous Year 2016-2017.

(b) Expenditure related to Corporate Social Responsibility is Rs. 2.89 Lakhs (Previous Year Rs. 2.07 Lakhs)

10. Research & Development

The company conducts its R&D initiatives within the broad framework of innovation initiatives. The company purchased technologically upgraded Circular Loom, Stitching Machine, Ultrasonic Cutting and Sealing Machine, for its units.

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Mar 31, 2016

1. Government grants are recognized when there is reasonable assurance that (i) the company will comply with the conditions attached to them and (ii) the grants will be received.

2. Government grants related to specific fixed assets are presented in the balance sheet by showing the grant as a deduction from the gross value of the asset concerned in arriving at their book value.

3. Government grants related to revenue are recognized on a systematic basis in the profit and loss account over the periods necessary to match them with the related costs which they are intended to compensate by deducting from the related expense.

4. Government grants in the nature of promoter''s Contribution or to set up an industrial unit which are not related to specific fixed asset are credited to Capital reserve and treated as part of Shareholders fund.

5. Terms/rights attached to equity shares :

The company has only one class of equity shares having a par value of 10/- per share. Each holder of equity shares is entitled to one vote per share. 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.

6. Bonus Shares

The company has allotted 6469050 fully paid up Equity Shares of face value of 10/ each during the financial year 2015-2016 pursuant to the bonus issue approved by the shareholders at their Extraordinary General Meeting held on 15th March, 2016 in the ratio of 3 Equity shares for every 1 Equity share held on record date. The record date fixed by the Board of Directors for issue of Bonus Shares is 15th March, 2016. Except this the Company has not made any allotment of shares as Bonus Shares during the period of five years immediately preceding the date as at which the Balance Sheet is prepared.

Term loans from Bank of India (balance 3,15,64,353) and working capital loan is secured by first charge on company''s stock of finished goods, stock in process, stores and spares, packing material at various godowns/ sites/ports or at such other places as may be approved by the bank from time to time, including goods at in transit/ outstanding money, book debts, receivables and other current assets etc. and hypothecation of entire fixed assets of the company consisting of plant and machinery. Also secured by first charge over fixed assets of the company including factory land and building situated at S-4/3, S-4/2 and S-4/3A Pithampur, Sector I, Dist. Dhar on unit No.I. Also secured by first charge over staff quarters to be constructed out of bank finance by way of equitable mortgage over land and building situated at plot No. 40 to 45, Shalimar Residency, Mhow, Dist. Indore. Also collaterally and exclusively secured by equitable mortgage of Block A and B of office premises situated at 3-4 Jaora Compound, Indore belonging to company. Term loans and working capital loans are also personally guaranteed by Shri Anil Choudhry (MD), Smt. Ranjana Choudhary, Director of the company, Shri Pradeep Kumar Agrawal, Shri Shambhu Dayal Garg and Shri Ashok Kumar Agrawal.

Term loan from Bank of Baroda (balance 5,26,25,732) is secured by exclusive first charge by way of equitable mortgage of leasehold factory land admeasuring about 2247.75 meters, situated at plot No. S-3/1, sector 1 Industrial Area, Pithampur, Dist. Dhar Regd. A-1/1930 dated 17/09/09 standing in the name of company and hypothecation of entire machinery, electrical installation, furniture and fixtures, office equipments, book debts, stock and other movable fixed assets of the company, situated at above mentioned factories present and future. It is further secured by exclusive first charge by way of equitable mortgage of leasehold factory land admeasuring about 929 sqmtrs & building thereon at Plot No. 309, Sector 1, Industrial Area, Pithampur, Dist. Dhar (M.P.) and Factory Building constructed thereon and standing in the name of the company and hypothecation of entire machineries, electrical installations, furniture & fixtures, office equipments and other movable fixed assets of the company, situated at the abovementioned factories present and future. The loan is further secured by Equitable Mortgage of the lease hold factory land admeasuring about 7800 sq ft (724.91 sq m) and Building to be constructed thereon at Plot No. S-2/1, Sector - I, Pithampur Dist Dhar and hypothecation of entire machineries, electric installations, furniture and fixtures, office equipments and other movable fixed assets of the Company, situated at the above mentioned factories, present and future. The term loan is guaranteed by Shri Anil Choudhary (MD), Smt. Ranjana Choudhary, Director of the company, Corporate Guarantee of Super Sack Private Limited, Shri Pradeep Kumar Agrawal and Shri Ashok Kumar Agrawal.

HDFC Bank Term Loan (Balance 1,49,588) is secured by hypothecation of one Mercedes-Benz car. The principal amount is repayable in monthly installments of varying amounts from 54,894 to 75,111. Last installment is payable in May, 16.

HDFC Bank Term Loan (Balance 1,09,753) is secured by hypothecation of one Swift car. The principal amount is repayable in monthly installments of varying amounts from 16,795 to 22,331. Last installment is payable in August, 2016.

Term Loan from Kotak Mahindra Prime Ltd. (Balance 62,415) is secured by hypothecation of one Innova car. The principal amount is repayable in monthly installments of varying amounts from 35,712 to 41,014. Last installment is payable in May,16.

Bank of India Term Loan (Balance 21,00,615 ) is secured by hypothecation of one Skoda Octavia car. The principal amount is repayable in 84 monthly installments of varying amounts from 17,263 to 34,667. Last installment is payable in Feb 2023. There is no continuing default in repayment of loan or interest.

There is no continuing default in repayment of any loan and interest of any bank.

Particulars of Term Loan from Bank of India (Balance 3,15,64,353)

Term loan No. I from Bank of India (Balance on 31-03-16 33,74,353) is repayable in quarterly installments of 21.20 lakhs each. Term loan No. II from Bank of India (balance on 31-03-16 1,13,40,000) is repayable from Sep, 12 in quarterly installments comprising of first 6 installments of 8.80 lakhs each, next 4 installments of 10.20 lakhs each and rest 14 installments of 12.60 lakhs each. Term loan No. III from Bank of India (balance on 31-03-16 1,14,00,000 is repayable from Dec 13 comprising of first 6 installments of 8 Lakhs each and remaining 16 installments of 9.50 Lakhs each. Term loan No. IV from Bank of India (balance on 31-0316 54,50,000) is repayable in quarterly installments comprising first 6 installments of 2.20 lakhs each, next 4 installments of 2.30 lakhs each and the remaining 14 installments of 3.40 lakhs each commencing from September, 2014.

Particulars of Term Loan from Bank of Baroda (Balance 5,26,25,732)

Term loan from Bank of Baroda (Balance on 31-03-16 1,75,00,000) is repayable in 22 quarterly installments being first 4 installments of 18.75 lakhs each and remaining 18 installments of 25 lakhs each commencing from 31-7-2012.Term Loan II from Bank of Baroda (Balance on 31-03-16 96,04,610) is repayable in 22 quarterly installments being first 12 installment of 1.75 Lakhs each, 9 instalment of 9.90 lakhs & Last installment of 5.90 lakhs each. Term Loan III from Bank of Baroda (Balance on 31-03-16 43,88,952) is repayable in 28 quarterly installments being first 5 installments of 4.50 Lakhs each, 8 installments of 6.75 Lakhs each, 8 installments of 9.00 Lakhs each, 4 installments of 10.125 lakhs each and last 3 quarterly installments of 12.00 Lakhs each commencing from 28th Feb, 2015. Term Loan IV from Bank of Baroda (Balance on 31-03-16 2,11,32,170) is repayable in 7 years including 15 months moratorium period with 23 graded quarterly installments commencing after initial moratorium of 15 months from the date of 1st disbursement. The repayment will be in 4 quarterly installments of 4.06 Lakhs each, 4 quarterly installments of 8.13 Lakhs each, 4 quarterly installments of 12.19 Lakhs each, 4 quarterly installments of 20.31 Lakhs each, 4 quarterly installments of 20.31 Lakhs each and 3 quarterly installments of 21.67 Lakhs each commencing from 31^st December, 2016.

In case of all unsecured loans, there is no repayment schedule. Therefore there is no continuing default in repayment of any loan or interest.

Working Capital Loan from Bank of India (balance 11,48,28,680) is also secured together with term loan (balance 3,15,64,353 as mentioned in Note No. 5) by first charge on company''s stock of finished goods, stock in process, stores and spares, packing material at various godowns/sites/ports or at such other places as may be approved by the bank from time to time, including goods at in transit/outstanding money, book debts, receivables and other current assets etc. and hypothecation of entire fixed assets of the company consisting of plant and machinery. Also secured by first charge over fixed assets of the company including factory land and building situated at S-4/3, S-4/2 and S-4/3A Pithampur, Sector I, Dist. Dhar on unit No.I. Also secured by first charge over staff quarters to be constructed out of bank finance by way of equitable mortgage over land and building situated at plot No. 40 to 45, Shalimar Residency, Mhow, Dist. Indore. Also collaterally and exclusively secured by equitable mortgage of Block A and B of office premises situated at 3-4 Jaora Compound, Indore belonging to company. Term loans and working capital loans are also personally guaranteed by Shri Anil Choudhry (MD), Smt. Ranjana Choudhary, Director of the company, Shri Pradeep Kumar Agrawal, Shri Shambhu Dayal Garg and Shri Ashok Kumar Agrawal.

Working Capital from from Bank of Baroda (balance 2,42,39,519) is also secured together with term loan (balance 5,26,25,732 as mentioned in Note. No. 5) by exclusive first charge by way of equitable mortgage of leasehold factory land admeasuring about 2247.75 meters, situated at plot No. S-3/1, sector 1 Industrial Area, Pithampur, Dist. Dhar Regd. A-1/1930 dated 17/09/09 standing in the name of company and hypothecation of entire machinery, electrical installation, furnitre and fixtures, office equipments, book debts, stock and other movable fixed assets of the company, situated at above mentioned factories present and future. It is further secured by exclusive first charge by way of equitable mortgage of leasehold factory land admeasuring about 929 sqmtrs & building thereon at Plot No. 309, Sector 1, Industrial Area, Pithampur, Dist. Dhar (M.P.) and Factory Building constructed thereon and standing in the name of the company and hypothecation of entire machineries, electrical installations, furniture & fixtures, office equipments and other movable fixed assets of the company, situated at the abovementioned factories present and future. The loan is further secured by Equitable Mortgage of the lease hold factory land admeasuring about 7800 sq ft (724.91 sq m) and Building to be constructed thereon at Plot No. S-2/1, Sector - I, Pithampur Dist Dhar and hypothecation of entire machineries, electric installations, furniture and fixtures, office equipments and other movable fixed assets of the Company, situated at the above mentioned factories, present and future. The term loan is guaranteed by Shri Anil Choudhary (MD), Smt. Ranjana Choudhary, Director of the company, Corporate Guarantee of Super Sack Private Limited, Shri Pradeep Kumar Agrawal and Shri Ashok Kumar Agrawal.

7. EMPLOYEES BENEFIT EXPENSES

The company makes provident fund Contributions, a defined contribution plan, for qualifying employees. It also contributes to Employees State Insurance Corporation, which is also defined contribution plan. The company recognized 39,24,806/- and 27,41,989/- respectively for PF and ESI contributions in Statement of Profit and Loss.

The company makes annual contribution to the Employee''s Group Gratuity Cum Life Assurance Scheme of the Life Insurance Corporation of India, a funded benefit plan for qualifying employees. The Scheme provides for lump sum payment to vested employees at retirement, death while in employment or on termination of employment of an amount equivalent to 15 days salary payable for each completed year of service or part thereof in excess of six months. Vesting occurs upon completion of five years of service.

The figures of present value of the defined benefit obligation and the related current service cost were as measured and provided by Life Insurance Corporation of India.

The following table sets out the funded status of the gratuity plan and the amounts recognized in the Company''s financial statements as at March, 31 2016.

8. In the opinion of the board, all Current Assets, Loans & Advances have a value on realization in the ordinary course of business at least equal to the amount at which these are stated.

9. The balances of Debtors, Creditors, Advances and Liabilities are subject to confirmation and consequential adjustment, if any.

10. Intimation have not been received from any "Supplier" regarding their status under the Micro, Small and Medium Enterprises Act 2006 and hence following information is treated as NIL.

11. the principal amount and the interest due thereon remaining unpaid to any supplier as at the end of each accounting year.

12. the amount of interest paid by the buyer in terms of section 16 of The Micro, Small and Medium Enterprises Development Act, 2006, along with the amount of the payment made to the supplier beyond the appointed day during each accounting year.

13. the amount of interest due and payable for the period of delay in making payment (which have been paid but beyond the appointed day during the year) but without adding the interest specified under the Micro, Small and Medium Enterprises Development Act 2006

14. the amount of interest accrued and remaining unpaid at the end of each accounting year; and

15. the amount of further interest, remaining due and payable even in the succeeding years, until such date when the interest dues as above are actually paid to the small enterprise, for the purpose of disallowance as a deductible expenditure under section 23 of the Micro, Small and Medium Enterprises Development Act, 2006.

16. Segment Reporting

17. Primary Segment (by Business Segment)

Based on the guiding principles given in Accounting Standards on Segment Reporting (AS - 17) the company is primarily in the business of manufacture and sale of FIBC, Bulk Bags, Poly Tarpaulin, Woven Sacks/Bags, Box Bags, PP/HDPE Fabric, Liner and Flexible Packaging which mainly have similar risk and returns. The company''s business activity falls within a single geographical and business segment (Woven sack, Fabric,Tarpaulin & Liner), hence it has no other primary reportable segment.

18. Secondary Segment (by Geographical demarcation)

19. The secondary segment is based on geographical demarcation i.e. in India and outside India.

20. Information about secondary segment are as follows:

21. All segment assets of the Company are predominantly located in India.

22. As per Accounting standard 18, the disclosures of transactions with the related parties as defined in the Accounting standard are given below:-

23. List of related parties where control exists and related parties with whom transaction have taken place and relationship:-

24. As regards gratuity, the Company is under the Employee Group Gratuity Scheme of the Life Insurance Corporation of India ("LIC") . However, the Company does not have a certificate either from "LIC" or any other source to the effect that the contribution so made has been worked out by a qualified actuary in accordance with AS-15 (Revised 2005). The acturial assumption in respect of discount rate for above working used at the balance sheet date is 8%. As regards compensated absences, the Company has policy for encashment of leaves (which is compulsorily paid within one year from the end of the financial year) standing to the credit of the employees on cash basis.

25. The Company has entered into Forward Exchange Contracts, being derivatives instruments for hedge purpose and not intended for trading or speculation purpose, to establish the amount of currency in Indian Rupees required or available at the settlement date of certain payables and receivables. The following are the outstanding Forward Exchange Contracts entered into by the Company:

26. CORPORATE SOCIAL RESPONSIBILITY (CSR)

27. CSR amount required to be spent as per Section 135 of the Companies Act, 2013 read with Schedule VII thereof by the company during the year is 10.58 Lakhs (Previous Year 7.57 Lakhs).

28. Expenditure related to Corporate Social Responsibility is 0.45 Lakhs (Previous Year NIL)

Details of Amount spent towards CSR given below:

29. RESEARCH & DEVELOPMENT

The company conducts its R&D initiatives within the broad framework of innovation initiatives. The company purchased technologically upgraded Circular Looms, Printing Machines and Solvent less Lamination Machine for its units.