Terms/Right attached to Equity Shares :

The Company has only one class of equity shares having a par value of ? 5/- per share. Each holder of equity shares is entitled to one vote per share. The Company declares and pays dividends in Indian Rupees. The dividend proposed by the Board of Directors is subject to approval of the shareholders at the ensuing Annual General Meeting.

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

There were no buy back of shares / issue of shares for consideration other than cash during the period of 5 years immediately preceding the reporting date.

a. Capital Reserve:

Comprise of Central Capital Investment Subsidy received for setting up manufacturing plant at Roorkee.

b. General Reserve:

The Company has transferred a portion of the net profit of the Company before declaring the dividend to General Reserve pursuant to the earlier provisions of the Companies Act, 1956. Mandatory transfer to General Reserve is not required under the Act.

c. Equity instruments through other comprehensive income:

This represents the cumulative gains and losses arising on the revaluation of equity instruments measured at fair value through other comprehensive income, under an irrevocable option, net of amounts reclassified to retained earnings when such assets are disposed off.

First Pari Passu charge on Company's Entire Stock & Book Debts present and future & First Pari Passu charge on all Plant & Machinery and Immovable Fixed Assets of the Company located at 74/1,2, 75/3 at Daman Industrial Estate. There is no default, continuing or otherwise as at the Balance Sheet date, in repayment of any of the above borrowings.

Interest rate of the said working capital facilities from banks (secured) is 9.00% and it is repayable on demand.

The Company's pending litigations comprise of proceedings pending with Income Tax authorities. The Company has reviewed all its pending litigations and proceedings and has adequately provided for where provisions are required and disclosed the contingent liabilities where applicable, in its financial statements. The Company does not expect the outcome of these proceedings to have a materially adverse effect on its financial results. The Above Figures are excluding interest & Penalty thereon.

b. Letter of Credit & Bills of Exchange as at March 31,2024 is ? 54.79 Lakhs (March 31,2023 is ? 56.70 Lakhs)

c. Guarantees issued by the Banks on behalf of the Company as at March 31,2024 is ? 426.97 Lakhs (March 31,2023 is ?341.23 Lakhs)

d. The Company did not have any long-term contracts for which there were any material foreseeable losses.

Note 39: Employee Benefits (Ind AS 19) :a. Defined Benefit Plans :

Gratuity :

In accordance with the Payment of Gratuity Act, 1972, applicable for Indian companies, the Company provides for a lump sum payment to eligible employees, at retirement or termination of employment based on the last drawn salary and years of employment with the Company. The gratuity fund is managed by certain third-party fund managers. The Company's obligation in respect of the gratuity plan, which is a defined benefit plan, is provided for based on actuarial valuation using the projected unit credit method. The Company recognizes actuarial gains and losses immediately in other comprehensive income, net of taxes.

Inherent Risk:

The plan is defined in nature which is sponsored by the Company and hence it underwrites all the risks pertaining to the plan. In particular, this exposes the Company to actuarial risk such as Salary Risk, Interest Rate Risk, Investment Risk, changes in demographic experience. This may result in an increase in cost of providing these benefits to the employees in future. Since the benefits are lump sum in nature, the plan is not subject to any longevity risk.

*These Sensitivities have been calculated to show the movement in defined benefit obligation in isolation and assuming there are no other changes in market conditions at the accounting date. There have been no changes from the previous periods in the methods and assumptions used in preparing the sensitivity analyses.

Basis of Estimation of Assumption :

The expected return on plan assets is based on expectation of the average long-term rate of return expected on investments of the fund during the estimated term of the obligations.

The discount rate is based on the prevailing market yields of Indian government securities for the estimated term of the obligations.

The estimates of future salary increase considered takes into account the inflation, seniority, promotion and other relevant factors.

Attrition rate considered is the management's estimate, based on previous years' employee turnover of the Company.

Asset and Liability matching strategy :

The money contributed by the Company to the Gratuity Fund to finance the liability of the plan has to be invested. The Company has invested the plan assets in the insurer managed funds. The expected rate of return on plan assets is based on expectation of the average long-term rate of return expected on investments of the fund during the estimated term of the obligation.

There is no compulsion on the part of the Company to fully refund the liability of the Plan. The Company's philosophy is to fund these benefits based on its own liquidity.

b. Defined Contribution Plans :

Amount recognized as an expense and included in Note 33 under the head “Contribution to Provident and other Funds” of Statement of Profit & Loss ?285.99 Lakhs (March 31,2023 ?290.38 Lakhs).

c. Superannuation / NPS Benefits :

Superannuation Benefits is contributed by the Company to Life Insurance Corporation of India (LIC) with respect to certain employees.

Contribution to Superannuation / NPS Fund charged to Statement of Profit & Loss in Notes 33 under the head “Contribution to Provident and other Funds” is ?21.47 Lakhs (March 31,2023 ?11.20 Lakhs).

Note 40: Segment Reporting (Ind AS 108)

The Company is exclusively engaged in the manufacturing of Masterbatches in India. As per Ind AS -108, “Operating Segments” specified under Section133 of the Companies Act 2013, there are no reportable operating or geographical segments applicable to the Company.

Note: As the post-employment benefits is provided on an actuarial basis for the Company as a whole, the amount pertaining to key management personnel is not ascertainable and therefore not included above.

Terms and Conditions of transactions with Related Parties :

The sales to and purchases from related parties are made in the normal course of business and on terms equivalent to those that prevail in arm's length transactions. Outstanding balances at the year-end are unsecured and interest free and settlement occurs in cash.

Note 42: Revenue Recognition (Ind AS 115)

The Company is primarily in the Business of manufacture and sale of Masterbatches. All sales are made at a point in time and revenue from contract with customer are recognised when goods are dispatched and the control over the goods sold are transferred to customers. The Company does not expect to have any contracts where the period between the transfer of goods and payment by customer exceeds one year. Hence, the Company does not adjust revenue for the time value of money.

In compliance with Ind AS 115, certain discounts are treated as variable components of consideration and have been recognised as deductions from revenue instead of other expenses.

*Considering Financial Asset & Financial Liabilities fair value is approximately equal to Amortised Cost.

Note 47: Investments in equity instruments designated at Fair Value through Other Comprehensive Income

The Company has investments in Equity Shares of Kabra Extrusiontechnik Limited. The Company has opted to designate the investment in Kabra Extrusiontechnik Limited at Fair Value through Other Comprehensive Income since these investments are not held for trading purpose.

Dividend from Kabra Extrusiontechnik Limited (Refer Note 30) : (FY 2023-24 ? 28.96 Lakhs) (FY 2022-23 : ? 24.82 Lakhs) Note 48: Fair Value Measurement (Ind AS 113)

The fair values of the financial assets and liabilities are included at the amount at which the instrument could be exchanged in a current transaction between willing parties, other than in a forced or liquidation sale.

The Company has established the following fair value hierarchy that categorizes the values into 3 levels. The inputs to valuation techniques used to measure fair value of financial instruments are:

Level 1: This hierarchy uses quoted (unadjusted) prices in active markets for identical assets or liabilities. Kabra Extrusiontechnik Limited is listed on stock exchange and the investment by the Company is being valued using the closing exchange price at the reporting date.

Level 2: The fair value of financial instruments that are not traded in an active market is determined using valuation techniques which maximize the use of observable market data and rely as little as possible on Company specific estimates. The Venture Capital Fund (Urban Infrastructure Fund), Gold PTC (Liquid Gold Series -2 Nov 2020 & Liquid Gold Series 4) and Mutual Fund in SBI Liquid Fund are valued using the closing Net Asset Value. If all significant inputs required to fair value an instrument are observable, the instrument is included in Level 2.

The management assessed that cash and bank balances, trade receivables, loans, trade payables, cash credits, commercial papers and other financial assets and liabilities approximate their carrying amounts largely due to the short-term maturities of these instruments.

The following methods and assumptions were used to estimate the fair values:

(a) The fair values of the quoted investments are based on market price at the reporting date.

(b) The fair values of the unquoted investments are based on net asset value at the reporting date

(c) The fair values of remaining financial instruments is determined using discounted cash flow analysis or based on the contractual terms.

The discount rates used is based on management estimates.

Note 49: Financial Instruments Risk Management Objectives and Policies (Ind AS 107)

The Company's principal financial liabilities comprise borrowings and other payables. The main purpose of these financial liabilities is to finance and support the Company's operations. The Company's principal financial assets include Investments, Loans and Other receivables, Cash and Cash Equivalents, Other Bank Balances.

The Company is exposed to Market Risk, Credit Risk and Liquidity Risk. The Company's senior management oversees the management of these risks. The Company's senior management ensures that the Company's financial risk activities are governed by appropriate policies and procedures and that financial risks are identified, measured and managed in accordance with the Company's policies and risk objectives.

Financial Risk Management

The Company has exposure to the following risks arising from financial instruments:

a. Market Risk

b. Currency Risk

c. Credit Risk

d. Liquidity Risk

Market risk arises from the Company's use of interest bearing financial instruments. It is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in interest rates (interest rate risk) or other market factors. Financial instruments affected by market risk include borrowings.

Interest Rate Risk

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The management is responsible for the monitoring of the Company's interest rate position. Different variables are considered by the management in structuring the Company's borrowings to achieve a reasonable, competitive, cost of funding.

Interest rate sensitivity has been calculated assuming the borrowings outstanding at the reporting date have been outstanding for the entire reporting period. Further, the calculations for the unhedged floating rate borrowing have been done on the notional value of the foreign currency (excluding the revaluation).

b. Foreign Currency Risk

Foreign currency risk is the risk of impact related to fair value or future cash flows of an exposure in foreign currency, which fluctuate due to changes in foreign exchange rates. The Company's exposure to the risk of changes in foreign exchange rates relates primarily to the import of raw materials and spare parts, capital expenditure, exports of finished products.

When a derivative is entered into for the purpose of being a hedge, the Company negotiates the terms of those derivatives to match the terms of the hedged exposure. The Company evaluates exchange rate exposure arising from foreign currency transactions. The Company follows established risk management policies and standard operating procedures.

Credit risk is the risk that counterparty will not meet its obligations under a financial instrument or customer contract, leading to a financial loss. The Company is exposed to credit risk from its operating activities, investing and financing activities including security deposits, deposits with banks, investment in equity shares, venture capital fund investments, foreign exchange transactions etc.

Trade receivables:

Trade receivables are consisting of a large number of customers. The Company has credit evaluation policy for each customer and based on the evaluation credit limit of each customer is defined. Wherever the Company assesses the credit risk as high the exposure is backed by either bank guarantee / letter of credit or security deposits.

Net Trade receivable as on 31^st March, 2024 ?8,798.65 Lakhs (31^st March, 2023 is ?9,112.01 Lakhs)

As per simplified approach, the Company makes provision of expected credit losses on trade receivables using a provision matrix to mitigate the risk of default payments and makes appropriate provision at each reporting date wherever outstanding is for longer period and involves higher risk.

Other Financial Instrument and Cash Deposits

With respect to credit risk arising from the other financial assets of the Company, which comprise bank balances, cash, security deposits with respect to lease agreements, etc. the Company's exposure to credit risk arises from default of the counterparty, with a maximum exposure equal to the carrying amount of these assets.

Credit risk from balances with banks is managed with the Company's policy. The Company limits its exposure to credit risk by only placing balances with local banks. Given the profile of its bankers, management does not expect any counterparty to fail in meeting its obligations. With respect to other financial instruments, the Company assess the risk of recoverability on periodic basis and makes required provision whenever necessary.

d. Liquidity risk

Liquidity risk is the risk that the Company will not be able to meet its financial obligations as they fall due. The Company monitors its risk by considering the maturity of its financial assets (e.g. trade receivables, other financial assets) and projected cash flows from operations.

The cash flows, funding requirements and liquidity of the Company is monitored under the control of the management. The objective is to optimize the efficiency and effectiveness of the management of the Company's capital resources. The Company manages liquidity risk by maintaining adequate reserves and borrowing facilities, by continuously monitoring forecasted and actual cash flows and matching the maturity profiles of financial assets and liabilities.

The Company currently has sufficient cash on demand to meet expected operational expenses.

The table below summarizes the maturity profile of the Company's financial liabilities based on contractual undiscounted payments.

The Board of Director has recommended dividend of ? 4.25/- per share i.e. 85% for FY 2023-24 in the Board meeting held on 02.05.2024. This proposed dividend on equity shares are subject to approval at AGM & not recognised as liability on reporting date.

Note 51: Capital Management (Ind AS 1)

For the purpose of Company's capital management, capital includes issued capital and other equity reserves attributable to the equity shareholders of the Company. The primary objective of the Company's Capital Management is to maximize shareholders value.

The Company manages its capital structure and makes adjustments in light of changes in economic conditions and the requirement of financial covenants. The Company monitors capital using a gearing ratio, which is net debt divided by total equity.

Note 52: Leases (Ind AS 116) a. Company as Lessee

The Company has taken office buildings & warehouses on lease for a tenure of 3 to 5 years. The Company's obligations under its leases are secured by the lessor's title to the leased assets. Generally, the Company is restricted from assigning and subleasing the leased assets. There are no variable lease payments and residual value guarantees for these leases. The leases are renewable on mutually agreeable terms

The Company applied Ind AS 116 for the lease property and the impact is given in financial is as follows :-The Company applied the following method for Ind AS 116.

1. Applied the exemption not to recognize Right-of-use assets and liabilities for leases with less than 12 months of lease term.

2. While determining the lease term option to extend or terminate the lease has been considered.

b. Company as lessor Operating leases:-

The Company has provided facilities and office premises on lease. These lease arrangements range for a period between 1 to 3 years. Some of these leases are renewable for further period on mutually agreeable terms and also include escalation clauses.

Note 53: Corporate Social Responsibility:

Expenditure incurred in cash on Corporate Social Responsibility activities in the Statement of Profit and Loss is ? 92.74 Lakhs (March 31,2023 ?132.97 Lakhs)

The amount required to be spent under Section 135 of the Companies Act, 2013 for the year ended March 31, 2024 is ? 92.39 Lakhs (March 31,2023 ? 102.41 Lakhs)

Note 54: Information as per the requirement of Section 22 of The Micro, Small and Medium Enterprises Development Act, 2006

The Company has sought inviting information from its vendors for their status under “The Small, Medium and Micro Enterprises Development Act 2006”, The Company has received the MSME Certificates from Vendors. Accordingly the Company has identified the vendors & trade payable treated as MSME trade payable separately.

Note 55: Research & Development:

Revenue expenditure on Research and Development included in different heads of expenses in the Statement of Profit and Loss is ? 321.46 Lakhs and Capital Expenditure in Fixed Assets is ?63.62 Lakhs. (March 31,2023, in Statement of Profit & Loss:-? 229.66 Lakhs and Capital Expenditure: - ? Nil).

Note 56: Government Grants (Ind AS 20):

During FY 2018-19 the Company has received ? 64 lakhs as grant against capital investments under Scheme for Assistance to Industrial Units Purchasing Plant and Machinery during the exhibition - “PlastIndia 2015”. Grant is recognized in statement of Profit and Loss on systematic basis over period in which the Company recognizes depreciation of related assets. Other income includes grant under this scheme of ? 4.26 lakhs.

Note 58: Other Statutory Information

a) The Company has not been declared as a willful defaulter by any lender who has powers to declare a Company as a willful defaulter at any time during the Financial Year or after the end of reporting period but before the date when financial statements are approved.

b) The Company has no transactions with struck off Companies.

c) There is no modification of charge in the FY 2023-24.The Company does not have any charge which is yet to be registered with Registrar of Companies beyond the statutory period.

d) During the year ended March 31,2024, the Company was not party to any approved scheme which needs approval from competent authority in terms of sections 230 to 237 of the Companies Act, 2013.

e) The Company has not traded or invested in Crypto Currency or virtual currency during the Financial Year.

f) The Company has not surrendered or disclosed any income during the year in the tax assessments under the Income

Tax Act, 1961.

g) The Company did not have any long-term contracts including derivative contracts for which there were any material foreseeable losses.

h) The Company has complied with the number of Layers prescribed under clause (87) of Sec 2 of the Act read with The Companies (Restriction on number of layers) Rules, 2017.

i) The Company have not advanced or loaned or invested funds to any other person(s) or entity(ies), including foreign

entities (Intermediaries) with the understanding that the Intermediary shall: (a) directly or indirectly lend or invest in

other persons or entities identified in any manner whatsoever by or on behalf of the Company (Ultimate Beneficiaries) or (b) provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries.

j) The Company have not received any fund from any person(s) or entity(ies), including foreign entities (Funding Party) with the understanding (whether recorded in writing or otherwise) that the Company shall: (a) 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 (b) provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

k) The Company does not hold any benami property under the Benami Transactions (Prohibition) Act, 1988 and no proceeding has been initiated or is pending against the Company for holding any benami property.

Note 59 : Compliance with section 143(3) for maintenance of Books of Accounts

a. With effect from August 5, 2022, the Ministry of Corporate Affairs (MCA) has amended the Companies (Accounts) Rules, 2014, relating to maintenance of electronic books of accounts and other relevant books and papers. Pursuant to this amendment, the Company is required to maintain the books of account which are assessable in India at all times and their back-up is to be kept on servers located in India on a daily basis.

b. The Company has a process to take daily back-up of books of accounts maintained in electronic mode and along with the logs of the back-up of such books of accounts.

Note 60 :

Previous Year Figures have been regrouped / reclassified whenever necessary to correspond with current year classification

/ disclosure.