(m) Provisions and Contingencies
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. Provisions are reviewed at each reporting period and are adjusted to reflect the current
best estimate.

Contingencies

Contingent liabilities are disclosed 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 will be required
to settle or a reliable estimate of the amount cannot be made. Information on contingent liability is
disclosed in the Notes to the Financial Statements. Contingent assets are not recognized in
financial statements but are disclosed, if any.

(n) Employee benefits

All employee benefits payable wholly within twelve months of rendering the services are classified
as short term employee benefits, which include benefits like salaries, wages, short term
compensated absences, performance incentives, etc. and are recognized as expenses in the period
in which the employee renders the related service and measured accordingly.

Defined Contribution Plan

Employee benefits in the form of Provident Fund (with Government Authorities) are considered as
defined contribution plan and the contributions are charged to the statement of Profit & Loss of the
year when the contributions to the respective funds are due.

Defined Benefit Plan

Retirement benefit in the form of Gratuity is considered as defined benefit obligations and are
provided for on the basis of an actuarial valuation, using the projected unit credit method, as at the
date of the Balance Sheet.

Actuarial Gains and losses arising from experience adjustments and changes in actuarial
assumptions are recognized immediately in the balance sheet with a corresponding debit or credit
to retained earnings through other comprehensive income (OCI) in the period in which they occur.
Re-measurements are not reclassified to profit or loss in subsequent periods.

All other expenses related to defined benefit plans are recognized in Statement of Profit and Loss
as employee benefits expense.

Other long-term employee benefits

All employee benefits (other than postemployment benefits and termination benefits) which do not
fall due wholly within twelve months after the end of the period in which the employees render the
related services are determined based on actuarial valuation or discounted present value method
carried out at each balance sheet date. The expected cost of accumulating compensated absences is
determined by actuarial valuation performed by an independent actuary as at 31st March every
year using projected unit credit method on the additional amount expected to be paid / availed as a
result of the unused entitlement that has accumulated at the balance sheet date. Expense on non¬
accumulating compensated absences is recognised in the period in which the absences occur.

(o) Financial instruments - initial recognition, subsequent measurement and impairment

A financial instrument is any contract that gives rise to a financial asset of one entity and a
financial liability or equity instrument of another entity. The Company recognizes financial assets
and financial liabilities when it becomes a party to the contractual provisions of the instrument.
All the financial assets and liabilities are recognized at fair value on initial recognition. Transaction
costs that are directly attributable to the acquisition or issue of financial assets and financial
liabilities that are not at fair value through profit or loss, are added to the fair value on initial
recognition.

Subsequent measurement

i. Financial assets carried at amortized cost

A financial asset is subsequently measured at amortized cost if it is held within a business model
whose objective is to hold the asset in order to collect contractual cash flows and the contractual
terms of the financial asset give rise on specified dates to cash flows that are solely payments of
principal and interest on the principal outstanding. Amortised cost is calculated by taking into
account any discount or premium on acquisition and fees or costs that are an integral part of the
EIR. The EIR amortisation is included in finance income in the profit or loss.

ii. Financial assets at fair value through other comprehensive income

A financial asset is subsequently measured at fair value through other comprehensive income if it
is held within a business model whose objective is achieved by both collecting contractual cash flows
and selling financial assets and the contractual terms of the financial asset give rise on specified
dates that are solely payments of principal and interest on principal amount outstanding. Further
in cases where the Company has made an irrevocable election based on its business model, for its
investments which are classified as equity instruments the subsequent changes in fair value are
recognized in other comprehensive income.

iii. Financial assets at fair value through profit or loss

A financial asset which is not classified in any of the above categories are subsequently fair value
through profit or loss.

Financial liabilities

Financial liabilities include long term and short term loan and borrowings, trade and other
payables and other eligible current and non-current liabilities.

All financial liabilities recognized initially at fair value and, in the case of loans and borrowing and
other payable, net of directly attributable transaction costs. After initial recognition, financial
liabilities are classified under one of the following two categories:

i. Financial liabilities at fair value through profit or loss

Financial liabilities at fair value through profit or loss include financial liabilities held for trading.
The Company has not designated any financial liabilities upon initial measurement recognition at
fair value through profit or loss. Financial liabilities at fair value through profit or loss are at each
reporting date at fair value with all the changes recognized in the Statement of Profit and Loss.

ii. financial liabilities measured at amortised cost

After initial recognition, such financial liabilities are subsequently measured at amortized cost by
applying the Effective Interest Rate (EIR) method to the gross carrying amount of financial
liability. The EIR amortization is included in finance expense in the profit and loss.

De-recognition of financial instruments

The company derecognizes a financial asset when the contractual rights to the cash flows from the
financial assets expire or it transfers the financial assets and the transfer qualifies for de¬
recognition under Ind AS

109. A financial liability is de-recognised when the obligation under the liability is discharged or
cancelled or expires.

(p) Earnings per share

Basic earnings per share is calculated by dividing the net profit or loss attributable to equity holder
of the Company by the weighted average number of equity shares outstanding during the year.
Partly paid equity shares are treated as a fraction of an equity share to the extent that they are
entitled to participate in dividends relative to a fully paid equity share during the reporting period.
The weighted average number of equity shares outstanding during the year is adjusted for events
such as bonus issue.

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

1.4 Significant accounting judgements, estimates and assumptions

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

(a) Property, plant and equipment

Useful lives of property plant and equipment are based on the life prescribed in Schedule II of the
Companies Act, 2013. In cases, where the useful lives are different from that prescribed in Schedule
II for plant and machinery, they are based on technical advice, taking into account the nature of
the asset, the estimated usage of the asset, the operating conditions of the asset, past history of
replacement, anticipated technological changes, manufacturers’ warranties and maintenance
support. External adviser and internal technical team assessed the useful lives, residual value and
fair value of property, plant and equipment as on 1st April 2016. Management believes that the
assigned useful lives and residual value are reasonable.

(b) Income taxes

Deferred tax assets and liabilities are recognized for the future tax consequences of temporary
differences between the carrying values of assets and liabilities and their respective tax bases, and
unutilized business loss and depreciation carry-forwards and tax credits. Deferred tax assets are
recognized to the extent that it is probable that future taxable income will be available against
which the deductible temporary differences, unused tax losses, depreciation carry-forwards and
unused tax credits could be utilized.

(c) Provisions and Contingencies

Provisions and liabilities are recognised in the period when it becomes probable that there will be
a future outflow of funds resulting from past operations or events and the amount of cash outflow
can be reliably estimated. The timing of recognition and quantification of the liability requires the
application of judgement to existing facts and circumstances, which can be subject to change. The
carrying amounts of provisions and liabilities are reviewed regularly and revised to take account of
changing facts and circumstances.

(d) Insurance claims

Insurance claims are recognised when the Company have reasonable certainty of recovery.
Subsequently any change in recoverability is provided for.

(e) Recoverability of trade receivables

Judgements are required in assessing the recoverability of overdue trade receivables and
determining whether a provision against those receivables is required. F actors considered include
the amount and timing of anticipated future payments and any possible actions that can be taken
to mitigate the risk of non-payment.

(f) Impairment of financial assets

The impairment provisions for financial assets are based on assumptions about risk of default and
expected loss rates. The Company uses judgement in making these assumptions and selecting the
inputs to the impairment calculation, based on Company’s past history, existing market conditions
as well as forward looking estimates at the end of each reporting period.

(g) Fair value measurement of financial instruments

When the fair values of financial assets and financial liabilities recorded in the balance sheet cannot
be measured based on quoted prices in active markets, their fair value is measured using valuation
techniques including the DCF model. The inputs to these models are taken from observable
markets where possible, but where this is not feasible, a degree of judgement is required in
establishing fair values. Judgements include considerations of inputs such as liquidity risk, credit
risk and volatility.

Changes in assumptions about these factors could affect the reported fair value of financial
instruments.

a. Terms/ rights attached to issued equity shares:

i) The Company has only one class of shares referred to as equity shares having par value of Rs 5/- each. The holder of equity shares is
entitled to one vote per share.

ii) In the event of liquidation of the Company, the holders of equity shares will be entitled to receive any of the remaining assets of the
Company, after distribution of all preferential amounts. However, no such preferential amounts exist currently. The distribution will be
in proportion to the number of equity shares held by the shareholders.

33. EMPLOYEE BENEFITS

A. Defined Contribution Plans - General Description
Provident Fund

The Company makes contribution towards employees' provident fund . Under the schemes, the Company is required to contribute a
specified percentage of payroll cost, as specified in the rules of the schemes to these defined contribution schemes.

1) Fair valuation of trade receivables, Cash and cash equivalents, other bank balances, loans & advances, trade payables and other current
financial assets and liabilities approximate their carrying amounts largely due to the short-term maturities of these instruments.

2) Fair value of borrowings from banks, are estimated by discounting future cash flows using rates currently available for debt on
similar terms and remaining maturities.

3) For Security Deposits received, the valuation model considers present value of expected payments discounted using an appropriate
discounting rate.

4) Fair value of security deposits given approximates the carrying value and hence, the valuation technique and inputs have not been
given.

Fair value hierarchy

All financial instruments for which fair value is measured in the financial statements are categorised within the fair value hierarchy,
described as follows:-

Level 1: This level of hierarchy includes financial assets that are measured by reference to quoted (unadjusted) prices in active markets
for identical assets or liabilities

Level 2: This level of hierarchy includes financial assets that are measured using inputs, other than quoted prices included within level
1, that are observable for such items, directly or indirectly.

Level 3: This level of hierarchy includes items measured using a valuation model based on assumptions that are neither supported by
prices from observable current market transactions in the same instruments nor based on available market data.

* Management has assessed that trade receivables, Cash and cash equivalents, other bank balances, loans & advances, trade payables and
other current financial assets and liabilities approximate their carrying amounts largely due to the short-term maturities of these
instruments.

36. FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES

The Company's principal financial liabilities comprise of borrowings from banks, trade payables and other payables. The main purpose
of these financial liabilities is to finance the Company's operations and to provide guarantees to support its operations. The Company's
principal financial assets include trade and other receivables, other bank balances and cash and cash equivalent that derive directly
from its operations.

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 is responsible to ensure that Company's financial risk activities which 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.

In the event of crisis caused due to external factors such as caused by recent pandemic "COVID-19”, the management assesses the
recoverability of its assets, maturity of its liabilities to factor it in cash flow forecast to ensure there is enough liquidity in these situations
through internal and external source of funds.

The Board of Directors reviews and agrees policies for managing each of these risks, which are summarised below.

(a) Market risk

Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of change in market price.
Market risk comprise of interest rate risk, currency risk and other price risk, such as equity price risk and commodity risk.

The sensitivity analysis in the following sections relate to the position as at March 31, 2025 and March 31, 2024.

(i) 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 Company's exposure to changes in market interest rates primarily arises from its floating rate debt obligations,
including Cash Credit facilities. For floating rate borrowings, a sensitivity analysis is performed assuming a 0.5% change in the interest
rate on the average borrowings during the year. During the current year, the Company's borrowings comprised of vehicle loans carrying
fixed interest rates, which do not expose it to interest rate risk, and Cash Credit facilities with variable interest rates, which are subject
to such risk.

(iii) Commodity price risk

The Company is affected by the price volatility of certain commodities. Its operating activities require the purchase of raw material
therefore, requires a continuous supply of certain raw materials. To mitigate the commodity price risk, the Company has an approved
supplier base to get competitive prices for the commodities and to assess the market to manage the cost without any comprise on
quality.

(b) Credit Risk

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 (primarily trade receivables) and from its financing
activities, including deposits with banks. Management has a credit policy in place and the exposure to credit risk is monitored on an
ongoing basis. Credit evaluations are performed on all customers requiring credit over a certain amount.

Trade receivables

T rade receivables are subject to credit limits, controls and approval processes. Basis the historical experience, the risk of default in case
of trade receivables is low. Provision is made for doubtful receivables on individual basis depending on the customer ageing, customer
category, specific credit circumstances and the historical experience of the Company.

Liquidity risk

The Company monitors its risk of a shortage of funds doing a liquidity planning exercise. The Company's objective is to maintain a
balance between continuity of funding and flexibility through the use of short term borrowing facilities like export packing credit and
cash credit facility. The Company's treasury function reviews the liquidity position on an ongoing basis. The Company assessed the
concentration of risk with respect to refinancing its debt and concluded it to be low. The Company has access to a sufficient variety of
sources of funding and surplus cash and cash equivalent on the basis of expected cash flow. The table below summarises the maturity
profile of the Company’s financial liabilities based on contractual undiscounted payment:

37. CAPITAL RISK MANAGEMENT

The Company's policy is to maintain an adequate capital base so as to maintain creditor and market confidence and to sustain future
development. Capital includes issued capital and all other equity reserves attributable to equity holders. The primary objective of the
Company's capital management is to maintain an optimal structure so as to maximize the shareholder's value. In order to strengthen the
capital base, the company may use appropriate means to enhance or reduce capital, as the case may be.

The Company is not subject to any external imposed capital requirement. The company monitors capital using a gearing ratio, which is net
debt divided by total capital plus net debt. The Company includes within net debt, interest bearing loans and borrowings less cash and cash
equivalents.

38. SEGMENT INFORMATION

As per Ind AS 108 identification of segment is based on the manner in which the entity’s Chief Operating decision makers’ (CODM) review
the business components regularly to make decisions about allocating resources to segment and in assessing its performance.

The Chief Operating decision maker reviews business performance at an overall Company level as one segment "Polymeric compounds
business".

A. Due to higher short-term borrowings availed during the year to meet working capital requirements.

41. OTHER STATUTORY INFORMATION

1) The Company does not have any Benami property, where any proceeding has been initiated or pending against the Company for holding
any Benami property.

2) There are no transactions and / or balance outstanding with companies struck off under section 248 of the Companies Act, 2013.

3) The Company does not have any charges or satisfaction which is yet to be registered with ROC beyond the statutory period.

4) The Company has 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:

i) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Company
(Ultimate Beneficiaries) or

ii) provided any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries.

5) The Company has 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 Group shall:

i) 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

ii) provided any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries.

6) The Company does not have any such transactions which are not recorded in the books of accounts that have been surrendered or
disclosed as income during the year in the tax assessments under the Income Tax Act, 1961 (such as, search or survey or any other relevant
provisions of the Income Tax Act, 1961).

7) The company does not have any investments through more than two layers of investment companies as per section 2(87) (d) and section
186 of Companies Act, 2013.

8) The Company has not traded or invested in Crypto currency or Virtual Currency during the financial year.

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

The notes referred to above form an integral part of the financial statements

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

For K N Gutgutia & Co.

Chartered Accountants

Firm's Registration No: 304153E U.S. Bhartia R.P. Goyal

Chairman Whole Time Director

DIN No.00063091 DIN No.00040570

B R Goyal Place: New Delhi Place: Ahmedabad

Partner

Membership No: 012172 Dilipkumar Gajanand Nikhare Manoj Gohil

Company Secretary

M. No.: A45570 Chief Financial Officer

Place: New Delhi Place: Ahmedabad Place: Ahmedabad

Date: 23.05.2025