€¦ · Ecoplast Limited Annual Report 2017 -2018 Board of Directors Jaymin B. Desai - Managing...

Ecoplast LtdThirty Sith Annual Report and Statement of Accounts for the year ended 31st March 2018

36

Ecoplast LimitedAnnual Report 2017 -2018

Board of Directors

Jaymin B. Desai - Managing Director

Jehangir A. Moos - Director

Dhananjay T. Desai - Director

Bhupendra M. Desai - Director

Compliance Officer

Bankers Bank of Baroda

Main Branch,

Nani Khatriwad,

Valsad - 396 001,

Auditors Y. B. Desai & Associates

Chartered Accountants

1/573, Gajanand Chambers,

Besides Anand Hospital,

Por Mahollo, Nanpura, Surat - 395001.

Share Registrars & TSR DARASHAW PRIVATE LTD.

6-10, Haji Moosa Patrawala Industrial estate,

20, Dr. E. Moses Road, Mahalaxmi,

Mumbai - 400 011.

Registered Office National Highway No.8,

Water Works Cross Road,

Abrama, Valsad - 396 002. Gujarat.

email : [email protected]

Sales Office 4, Magan Mahal,

215, Sir M. V. Road, Andheri (East),

Mumbai : 400 069.

Website www.ecoplastindia.com

CIN L25200GJ1981PLC004375

Mukul B. Desai - Chairman

Gujarat.

Charulata N. Patel - Director

Company Secretary & Antony Alapat

Chief Financial Officer M . D. Desai

Ecoplast Limited

2

Notice.............................................................................................. 3-12

Financial Highlights....................................................................... 13

Disclosure of Directors Attendance............................................. 14

Directors’ Report............................................................................ 15-18

Annexure to the Directors’ Report................................................19-40

Management Discussion and Analysis Report........................... 41

Auditors’ Report ............................................................................ 42-48

Balance sheet................................................................................. 49

Statement of Profit & Loss Account............................................. 50

Cash Flow Statement..................................................................... 51-52

Notes to Financial Statements...................................................... 53-93

Auditors Report on the Consolidated Financial Statement....... 94-98

Consolidated Balance Sheet ........................................................ 99

Consolidated Statement of Profit & Loss Account .................... 100

Consolidated Cash Flow Statement ............................................101-102

Notes to the Consolidated Financial Statement ......................... 103-145

Attendance Slip.............................................................................. 146

Proxy form...................................................................................... 147-148

C O N T E N T S

NOTICE

Notice is hereby given that the Thirty Sixth Annual General

Meeting of the members of Ecoplast Limited will be held at The

Club Resort, At & P.O.Vashier, Valsad - 396 001 on Friday,

14th September 2018 at 12.00 p.m. noon to transact the

following business :

ORDINARY BUSINESS :

1. To receive, consider and adopt:

a. the Audited Financial Statements of the Company for the

financial year ended 31st March, 2018, together with the

Reports of the Board of Directors and the Auditors thereon;

and

b. the Audited Consolidated Financial Statements of the

Company for the financial year ended 31st March,2018,

together with the Report of the Auditors thereon.

2. To declare Dividend on Equity Shares for the financial year

ended 31st March, 2018.

3. To appoint a Director in place of Ms. Charulata Patel

(holding DIN 00233935) who retires by rotation and, being

eligible, offers herself for re-appointment

SPECIAL BUSINESS

4. Re-appointment of Mr. Jaymin Desai ( DIN 00156221) as

Managing Director of the Company and payment of

remuneration to him.

To consider and if thought fit to pass the following resolution as

a Special Resolution:

“RESOLVED THAT pursuant to the provisions of Sections

196,197,203 and any other applicable provisions of the

Companies Act, 2013 and Companies (Appointment and

Remuneration of Managerial Personnel) Rules, 2014

(including any statutory modification(s) or re-enactment

thereof for the time being in force), read with Schedule V to the

Companies Act, 2013, SEBI (Listing Obligations and

Disclosures Requirement) (Amendment) Regulation, 2018

notified by SEBI by way of Notification No. SEBI/ LAD-NRO/

GN/ 2018/ 10 dated May 09, 2018 and subject to such other

approval as may be necessary, the Company hereby accords

its consent and approval to the re-appointment of Mr. Jaymin

Desai (DIN 00156221) as Managing Director of the Company

for a period of three years with effect from 1st October,2018 to

30th September 2021 on the terms and conditions including

remuneration as set out in the Statement setting out material

facts annexed to the notice convening this meeting, with

liberty and power to the Board of Directors (hereinafter

referred to as 'the Board' which expression shall also include

the Nomination and Remuneration Committee of the Board),

in the exercise of its discretion, to grant increments and to alter

and vary from time to time the terms and conditions of the said

appointment, subject to the same not exceeding the limits

specified under Schedule V to the Companies Act, 2013 or

any statutory modification(s) or re-enactment thereof.

RESOLVED FURTHER THAT the Board be and is hereby

authorised to do all such acts, deeds, matters and things as

may be necessary, proper, expedient or desirable to give

effect to this resolution and/or to make any modification as

may be deemed to be in the best interest of the Company.”

5. Approval of shareholders for continuing the Directorship of

Mr. Dhananjay T. Desai (holding DIN:00049574) who has

attained the age of seventy five year till his original tenure upto

September 11, 2020 under SEBI (Listing Obligations and

Disclosures Requirement) (Amendment) Regulation, 2018.



Annual Report 2017 - 2018

3

Ecoplast Limited

4

“RESOLVED THAT pursuant to the SEBI (Listing Obligations

and Disclosures Requirement) (Amendment) Regulation,

2018 notified by SEBI by way of Notification No. SEBI/ LAD-

NRO/ GN/ 2018/ 10 dated May 09, 2018 and all other

applicable provisions of Listing Regulations, the Companies

Act, 2013 and Rules framed there under, and such other

applicable laws, rules, regulations, guidelines ("other

applicable laws") (including any statutory amendment(s) or

modification(s) or re-enactment(s) thereof, for the time being

in force) and subject to the Memorandum and Articles of

Association of the Company, the Company do hereby approve

continuation of Directorship of the Company of Mr. Dhananjay

T. Desai (DIN:00049574) , who has attained the age of

seventy five years, till his Original Term up to September 11,

2020.”

6. Approval of shareholders for continuing the Directorship of

Mr. Jehangir A. Moos (holding DIN:00020609) who will attain

the age of seventy five years till his original tenure up to

September 19, 2019 under SEBI (Listing Obligations and

Disclosures Requirement) (Amendment) Regulation, 2018.



“RESOLVED THAT pursuant to the SEBI (Listing Obligations

and Disclosures Requirement) (Amendment) Regulation,

2018 notified by SEBI by way of Notification No. SEBI/ LAD-

NRO/ GN/ 2018/ 10 dated May 09, 2018 and all other

applicable provisions of Listing Regulations, the Companies

Act, 2013 and Rules framed there under, and such other

applicable laws, rules, regulations, guidelines ("other

applicable laws") (including any statutory amendment(s) or

modification(s) or re-enactment(s) thereof, for the time being

in force) and subject to the Memorandum and Articles of

Association of the Company, the Company do hereby approve

continuation of Directorship of the Company of Mr. Jehangir

A.Moos (DIN:00020609) , who will attain the age of seventy

five years on 21st May 2019, till his Original Term up to

September 19, 2019.”

By Order of the Board

For Ecoplast Limited

Registered Office:

National Highway No. 8,


Abrama, Valsad - 396002,

Gujarat

CIN: L25200GJ1981PLC004375

Tel: (02632) 226157

E-mail : [email protected],

Website : www.ecoplastindia.com

Mumbai, 28th May, 2018

Antony Alapat

Company Secretary


Mahalaxmi, Mumbai - 400 011.

f) In terms of Section 124 of the Companies Act, 2013

dividends remaining unpaid or unclaimed for a period of seven

years from the date of transfer to the unpaid dividend account

of the Company shall be transferred by the Company to the

Investor Education and Protection Fund established by the

Central Government pursuant to sub-section (1) of Section

125 of the Companies Act, 2013. In terms of Section 124(6) of

the Companies Act,2013, all shares in respect of which

dividend has not been claimed for seven consecutive years or

more shall also be transferred by the company to the demat

account of Investor Education and Protection Fund Authority.

Any claimant of shares transferred as above shall be entitled

to claim the transfer of shares from Investor Education and

Protection Fund Authority in accordance with the Investor

Education and Protection Fund Authority (Accounting, Audit,

Transfer and Refund) Rules, 2017. The Members, whose

unclaimed dividends/shares have been transferred to IEPF,

may claim the same by making an application to the IEPF

Authority in Form No.IEPF-5(available on www.iepf.gov.in).

g) The Securities and Exchange Board of India (SEBI) has

mandated the submission of Permanent Account Number

(PAN) by every participant in security market. Shareholders

holding shares in electronic form are, therefore requested to

submit the PAN to their Depository Participant with whom they

are maintaining their demat accounts. Shareholders holding

share in physical form can submit their PAN details to the

Company.

h) The Notice of the AGM along with the Annual Report for the

FY 2017-18 is being sent by electronic mode to those

Members whose e-mail addresses are registered with the

Company/Depositories, unless the Member has requested for

a physical copy of the same. For Members who have not

registered their e-mail addresses, physical copies are being

sent by the permitted mode. To support the 'Green Initiative'

the Members who have not registered their e-mail addresses

are requested to register the same with TSRDL/Depositories.

i) Members may also note that this Notice of the 36thAnnual

General meeting and the Annual report for the year 2017-

2018 will be also available on the Company's Website:

www.ecoplastindia.com for download.

j) All documents referred to in the notice of the Meeting and

other statutory registers shall be available for inspection by

the Members atthe registered office of the Company during

officehours on all working days between 11.00 a.m. and1.00

5

Notes:

a) The relative Explanatory Statement pursuant to Section

102 of the Companies Act, 2013 ("Act") setting out material

facts concerning the business under Item Nos. 4 to 6 of the

Notice, is annexed hereto. The relevant details, pursuant to

Regulation 36(3) of the SEBI (Listing Obligations and

Disclosure Requirements) Regulations, 2015 ("SEBI Listing

Regulations") and Secretarial Standard on General Meetings

issued by the Institute of Company Secretaries of India, in

respect of Directors seeking appointment/re-appointment at

this Annual General Meeting are also annexed.

b) A MEMBER ENTITLED TO ATTEND AND VOTE AT THE

MEETING IS ENTITLED TO APPOINT PROXY/PROXIES TO

ATTEND AND VOTE INSTEAD OF HIMSELF/HERSELF.

PROXY/PROXIES NEED NOT BE A MEMBER OF THE

COMPANY. A PERSON CAN ACT AS PROXY ON BEHALF

OF MEMBERS NOT EXCEEDING FIFTY (50) AND IN

HOLDING NOT MORE THAN TEN PERCENT (10%) OF THE

TOTAL SHARE CAPITAL OF THE COMPANY. IN CASE A

PROXY IS PROPOSED TO BE APPOINTED BY A MEMBER

HOLDING MORE THAN 10% OF THE TOTAL SHARE

CAPITAL OF THE COMPANY CARRYING VOTING RIGHTS,

THEN SUCH PROXY SHALL NOT ACT AS A PROXY FOR

ANY OTHER PERSON OR SHAREHOLDER. PROXIES IN

ORDER TO BE EFFECTIVE MUST BE RECEIVED BY THE

COMPANY AT ITS REGISTERED OFFICE NOT LATER

THAN FORTY E IGHT HOURS BEFORE THE

COMMENCEMENT OF THE MEETING. A PROXY FORM IS

SENT HEREWITH. PROXIES SUBMITTED ON BEHALF OF

THE COMPANIES, SOCIETIES ETC., MUST BE

S U P P O R T E D B Y A N A P P R O P R I A T E

RESOLUTION/AUTHORITY, AS APPLICABLE.

c) The Register of Members and the Share Transfer books of

the Company will remain closed from Friday, 7th September,

2018 to Friday, 14th September, 2018 (both days inclusive).

d) Members seeking any information with regard to the

Accounts are requested to write to the Company at least

seven days prior to the meeting, so as to enable the

Management to keep the information ready at the Meeting.

e) All correspondence relating to transfer of shares, change

of address, dividend mandates etc. should be sent to the

Registrar & Share Transfer agents quoting their folio numbers

only at the following address:

M/s TSR Darashaw Ltd. ("TSRDL"), 6-10, Haji Moosa

Patrawala Industrial Estate, 20, Dr. E.Moses Road,

p.m. except Saturdays, Sundays andpublic holidays, from the

date hereof up to the dateof the annual general meeting.

k) A route map giving directions to reach the venue of the 36th

Annual General Meeting is given at the end of the Notice.

l) Voting through electronic means:

In compliance with provisions of Section 108 of the

Companies Act, 2013 read with Rule 20 of the Companies

(Management and Administration) Rules, 2014,as amended

by the Companies (Management and Administration)

Amendment Rules, 2015and Regulation 44 of the SEBI

(Listing Obligations and Disclosure Requirements)

Regulations, 2015 (' Listing Regulations') as amended .the

Company is pleased to provide members facility to exercise

their right to vote at the 36thAnnual General Meeting (AGM)

by electronic means and the business may be transacted

through remote e-voting.

The facility of casting the votes by the Members using an

electronic voting system from a place other than venue of the

AGM ("remote e-voting") will be provided by National

Securities Depository Limited (NSDL).As the voting would be

through electronic means, the Members who do not have

access to remote e-voting,may send their assent or dissent in

writing on the Ballot Form enclosed with the Annual Report.

You are required to complete and sign the Ballot Form and

send it so as to reach the Scrutinizer appointed by the Board of

Directors of the Company, at the Registered Office of the

Company not later than Thursday, 13th September, 2018

(5.00 p.m. IST). Ballot Form received after this date will be

treated as invalid.

A Member can opt for only one mode of voting, i.e., either

through remote e-voting or by Ballot. If a Member casts votes

by both modes, then voting done through remote e-voting

shall prevail and Ballot shall be treated as invalid.

I. The facility for voting through Ballot shall also be made

available at the AGM and Members attending the meeting

who have not cast their vote by remote e-voting/physical ballot

shall be able to exercise their right to vote at the meeting.

II. The process and manner for remote e-voting are as under:

A. In case a Member receives an email from NSDL [for

members whose email IDs are registered with the

Company/Depository Participants(s)]:

(i) Open email and open PDF file viz; "Ecoplast e-Voting.pdf"

with your Client ID or Folio No. as password. The said PDF file

contains your user ID and password/PIN for e-voting. Please

note that the password is an initial password.

(ii)Launch internet browser by typing the following URL:

https://www.evoting.nsdl.com/

(iii) Click on Shareholder - Login

(iv)Put user ID and password as initial password/PIN noted in

step (i) above. Click Login.

(v) Password change menu appears. Change the

password/PIN with new password of your choice with

minimum 8 digits/characters or combination thereof. Note

new password. It is strongly recommended not to share your

password with any other person and take utmost care to keep

your password confidential.

(vi) Home page of e-voting opens. Click on e-Voting: Active

Voting Cycles.

(vii) Select "EVEN" of Ecoplast Limited.

(viii) Now you are ready for e-voting as Cast Vote page opens.

(ix) Cast your vote by selecting appropriate option and click on

"Submit" and also "Confirm" when prompted.

(x) Upon confirmation, the message "Vote cast successfully"

will be displayed

(xi) Once you have voted on the resolution, you will not be

allowed to modify your vote

(xii) Institutional shareholders (i.e. other than individuals,

HUF, NRI etc.) are required to send scanned copy (PDF/JPG

Format) of the relevant Board Resolution/ Authority letter etc.

together with attested specimen signature of the duly

authorized signatory(ies) who are authorized to vote, to the

Scrutinizer through e-mail to [email protected] with

a copy marked to [email protected]

B. In case a Member receives physical copy of the Notice of

AGM [for members whose email IDs are not registered with

the Company/Depository Participants(s) or requesting

physical copy]:

(i) Initial password will be provided separately: EVEN (e-

Voting Event Number) USER ID PASSWORD/PIN

(ii) Please follow all steps from Sl. No. (ii) to Sl. No. (xii) above,

to cast vote.

III. In case of any queries, you may refer the Frequently Asked

Questions (FAQs) for Shareholders and e-Voting user manual

for Shareholders available at the Downloads section of

Ecoplast Limited

6


7

cast through Ballot at the AGM in a fair and transparent

manner.

XI.The Scrutinizer shall after the conclusion of voting at the

Annual General meeting, will first count the votes cast at the

meeting and thereafter unblock the votes cast through remote

e-voting/physical ballots in the presence of at least two

witnesses not in the employment of the Company and shall

make, not later than three days of the conclusion of the Annual

General Meeting, a consolidated Scrutinizer's Report of the

total votes cast in favour or against, if any, to the Chairman or

director authorized by him in writing, who shall countersign the

same and declare the result of the voting forthwith.

XII. The Results declared along with the Scrutinizer's Report

s h a l l b e p l a c e d o n t h e C o m p a n y ' s w e b s i t e

www.ecoplastindia.com and on the website of NSDL within

two(2) days of passing of the resolutions at the AGM of the

Company and communicated to BSE Limited. The results

shall also be placed on the notice board at the Registered

Office of the Company.



Registered Office:




Gujarat

CIN: L25200GJ1981PLC004375

Tel: (02632) 226157



Mumbai, 28th May, 2018

www.evoting.nsdl.com

IV. If you are already registered with NSDL for e-voting then

you can use your existing user ID and password/PIN for

casting your vote.

V. You can also update your mobile number and email id in

the user profile details of the folio which may be used for

sending future communication(s).

VI.The remote e-voting period commences on Tuesday,11th

September, 2018 (9:00 am) and ends on Thursday, 13th

September, 2018 (5:00pm). During this period shareholders'

of the Company, holding shares either in physical form or in

dematerialized form, as on the cut-off date of 7th September,

2018, may cast their votes electronically. The remote e-voting

module shall be disabled by NSDL for voting thereafter. Once

the vote on a resolution is cast by the shareholder, the

shareholder shall not be allowed to change it subsequently.

VII. The voting rights of shareholders shall be in proportion to

their shares of the paid up equity share capital of the Company

as on the cut-off date of 7th September, 2018.

VIII. If a Member casts votes by remote e-voting/Physical

Ballot and at the AGM through Ballot, then vote cast through

remote e-voting/Physical Ballot shall prevail and vote cast

through Ballot at the AGM shall be treated as invalid. The

members who have cast their vote by remote e-voting or by

ballot form prior to the meeting may also attend the meeting

but shall not be entitled to cast their vote again.

IX.Any person, who acquires shares of the Company and

becomes member of the Company after dispatch of the notice

and holding shares as of the cut-off date, may obtain the login

ID and password by sending a request at [email protected].

However, if you are already registered with NSDL for remote

e-voting then you can use your existing user ID and password

for casting your vote. If you forgot your password, you can

reset your password by using "Forgot User Details/Password"

optionavailable on www.evoting.nsdl.com.

X. Mr. P.N. Parikh (Membership No FCS: 327 CP: 1228) and

failing him Mr. Mitesh Dhabliwala (Membership No FCS :

8331, CP: 9511) of Parikh & Associates., Practicing Company

Secretaries, (Address : 111, 11th Floor, Sai Dwar CHS Ltd.,

Sab TV Lane, Opp. Laxmi Indl Estate, Off Link Road, Andheri

(West), Mumbai-400053.) has been appointed as the

Scrutinizer to scrutinize the remote e-voting process

(including the physical ballots received from members who

don't have access to the remote e-voting process)and votes

Antony Alapat

Company Secretary

ANNEXURE TO NOTICE

STATEMENT PURUSANT TO SECTION 102(1) OF THE

COMPANIES ACT, 2013 ("Act")

The following Statement sets out the material facts

relating to the Special Business mentioned in the

accompanying Notice:

Item No. 4:

At the 33rd Annual General Meeting of the Company held on

12th September 2015 the members had approved the re-

appointment and terms of remuneration of Mr. Jaymin Desai

as Managing Director of the Company for a period of 3 years

from 1st October, 2015 to 30th September, 2018.

The term of appointment of Mr. Jaymin Desai would expire on

30th September, 2018.Considering the significant growth

achieved by the Company and the ambitious growth plan for

immediate future, the responsibilities borne by the Managing

Director and the industry standards, the Board of Directors of

the Company at its Meeting held on 28th May, 2018 has upon

the recommendation of the Nomination and Remuneration

Committee and subject to the approval of members, approved

the re-appointment and terms of remuneration of Mr. Jaymin

Desai, as the Managing Director of the Company, for a term of

3 (Three) years w.e.f. from 1st October, 2018 to 30th

September, 2021.

The terms of remuneration payable to Mr. Jaymin Desai,

Managing Director are set out below:

a) SALARY: Rs. 5,25,000/- per month with such increments,

effective 1st October every year, as may be decided by the

Board of Directors of the Company within the scale of

Rs.5,25,000/- to Rs.6,00,000/- per month during the tenure of

his appointment.

b) Perquisites: In addition to the aforesaid Salary and

commission the Managing Director shall be entitled to the

following perquisites:

i) House Rent Allowance of Rs.1,57,500/- per month with

such increments, effective 1st October every year, as may be

decided by the Board of Directors of the Company within the

scale of Rs. 1,57,500/- to Rs.2,00,000/- per month during the

tenure of his appointment.

ii) Medical Allowance of Rs.20,833 per month.

ii) Reimbursement of Medical Insurance premium not

exceeding Rs. 25,000/- per annum.

iii) Personal Accident Insurance policy to cover the risk up to

an annual premium not exceeding a sum of Rs. 10,000/-

iv) Reimbursement of Leave Travel expenses as per rules of

the Company for self and family not exceeding Rs 1,50,000/-

per annum.

The above perquisites shall be evaluated as per the Income

tax Rules wherever applicable. In the absence of such rules,

perquisites will be evaluated at actual costs.

Notwithstanding anything to the contrary here in contained,

where, in any financial year during the currency of the tenure

of Mr. Jaymin B Desai as the Managing Director, the Company

has made no profits or its profits are inadequate, the Company

shall pay to the Managing Director, the above Salary and

perquisites, as Minimum Remuneration subject to the limits

provided in Schedule V of the Companies Act, 2013.

c) The Managing Director shall also be entitled to the

following perquisites which shall not be included in the

computation of the ceiling on remuneration specified herein

above :

i. Contribution to Provident Fund, Superannuation Fund or

Annuity Fund to the extent these either singly or put together

are not taxable under the Income tax Act, 1961.

ii. Gratuity payable at the rate not exceeding half a month's

Salary for each completed year of service.

iii. Earned privilege leave at the rate of one month's leave for

every eleven months of service. The Managing Director shall

be entitled to encash leave at the end of his tenure as

Managing Director.

iv. Provision for Car including driver's salary and Telephone at

the residence of the Managing Director and mobile phone for

the business of the Company shall not be treated as

perquisites.

v. All income tax and other impositions, if any, in respect of

Mr. Jaymin B. Desai's remuneration shall be calculated by the

Company and deducted in accordance with the applicable

provisions of the Income tax law for the time being in force.

d) Mr. Jaymin B. Desai shall perform such duties and exercise

such powers as may be from time to time delegated to him by

the Board of Directors of the Company.

e) Mr. Jaymin B. Desai shall devote all the time required for

the business of the Company and do his utmost to advance its

Ecoplast Limited

8

4) Financial performance based on given indicators:interest and shall exercise all his powers subject to the

superintendence and control of the Board of Directors of the

Company.

f) Mr. Jaymin B. Desai during the currency of the Agreement

shall not disclose or give information regarding the affairs of

the Company to any other person.

g) Mr. Jaymin B. Desai shall not after the termination of this

agreement represent himself as being in any way connected

with or interested in the business of the Company.

h) The Company shall be entitled to terminate the Agreement

in the event of Mr. Jaymin B. Desai found guilty of misconduct

or negligence in the discharge of his duties.

i) Mr. Jaymin B. Desai shall cease to be a Managing Director

of the Company if he ceases, for whatever reason, to be a

Director of the Company.

j) Either party shall be entitled to terminate the Agreement by

giving the other party not less than three calendar months

notice in writing without showing any cause.

k) This agreement supersedes all prior agreements,

arrangements or understandings whether oral or in writing.

The Board recommends Resolution at Item No.4 as a Special

Resolution for approval of the members.

None of the Directors or Key Managerial Personnel or

relatives of directors and KMP except Mr. Jaymin Desai is

concerned or interested in the Resolution at Item No.4 of the

Notice relating to his own appointment.

Further following additional information as required under

Section II of Part II of Schedule V to the Companies Act, 2013

is given below.

I. General Information:

1) Nature of Industry: Manufacturing Industry - Plastics

2) Date or expected date of Commencement of

Commercial production:

The Company has been in the business for many years

3) In case of new companies, expected date of

commencement of activities as per project approved

by financial institutions appearing in the prospectus:

Not Applicable

5) Foreign investments or collaborations, if any :

The Company has not entered into any foreign collaborations.

The Company has not made any foreign investments.

II. Information about the appointee:

1) Background details:Name: Mr. Jaymin B. Desai

Designation: Managing Director

Father's name: Balwantrai Desai

Nationality: Indian

Date of Birth: 30.09.1960

Qualifications: B.E (Chemical)

2) Experience: Over 30 years

3) Past remuneration: The gross remuneration paid to him

in the year 2017-2018 was Rs.75.63 lacs per annum.

4) Recognition or awards : Nil

5) Job profile and his suitability: The Managing Director

shall be responsible for the management of the whole of

the affairs of the Company and to do all acts and things,

which in the ordinary course of business, he considers

necessary or proper or in the interest of the Company.

Considering the above and having regard to age,

qualifications, ability and experience and looking to the

business requirement the proposed remuneration is in the

interest of the Company.

6) Remuneration proposed: As mentioned above.

7) Comparative remuneration profile with respect to

industry, size of the company, profile of the position

and person (in case of expatriates the relevant details

would be with respect to the country of his origin) :

Taking into consideration the size of the Company, the

profile of Mr. Jaymin Desai, his Responsibilities and the

industry benchmarks, the remuneration proposed to be

paid is commensurate with the remuneration packages

2015-2016 2016-2017 2017-2018

Turnover 93,08,27,218 96,14,05,650 99,04,97,480

Net profit (as per profit

& loss account) 2,32,74,132 1,96,74,985 2,97,37,813

Amount of Dividend paid 45,00,000 36,00,000 45,00,000

Rate of Dividend declared 15% 12% 15%


9

Ecoplast Limited

10

paid to similar senior level counterpart(s) in other

companies.

8) Pecuniary relationship directly or indirectly with the

company or relationship with the managerial

personnel, if any :

Besides the remuneration proposed to be paid to him, Ms.

Jaymin Desai or any of his relatives do not have any other

pecuniary relationship with the Company or relationship

with the managerial personnel.

III. Other Information:

1) Reasons of loss or Inadequate profits:

Volatility in raw material prices and shrinkages in margins

due to cut throat competition.

2) Steps taken or proposed to be taken for improvement:

Modification in the existing plants will help to increase the

production which will help to achieve higher volume.

3) Expected increase in productivity and profits in

measurable terms etc: With above steps profitability is

expected to increase by 7 %.

IV. Disclosures:

The information and disclosures of the remuneration

package of the managerial personnel have been

mentioned in the "Corporate Governance Section" of

Directors Report under the heading "Remuneration paid /

payable to Managing Director for the year ended 31st

March, 2018.

Item Nos. 5 & 6:

Securities and Exchange Board of India (SEBI) has vide its

Notification No. SEBI/LAD-NRO/GN/2018/10 dated May 09,

2018 issued the SEBI (Listing Obligations and Disclosures

Requirement) (Amendment) Regulation, 2018 ("the

Amendment Regulations") which brought amendment in the

SEBI (Listing Obligations and Disclosures Requirement)

Regulation, 2015 ("the Listing Regulations") to be made

effective from April 01, 2019, save as otherwise specifically

provided for in the Amendment Regulations. One of the said

amendments requires the listed entities to avail approval of

shareholders by way of Special Resolution to appoint or

continue the directorship of non-executive Directors who have

attained the age of seventy-five years. This amendment is

going to be effective from April 01, 2019.

Mr. D.T. Desai, Non-Executive Director of the Company, has

already attained the age of seventy five years. Further, Mr.

J.A. Moos, a Non-Executive Director of the Company would

be attaining age of seventy five years in the month of May,

2019. As per the original shareholders' approval, the

Appointment of Mr. D.T. Desai is valid till September 11, 2020,

whereas appointment of Mr. J.A. Moos is valid till September

19, 2019 ("Original Term") in terms of the provisions of the

Companies Act, 2013.

The Board feels that the skills, expertise and vast experience

of Mr. D.T. Desai and Mr. J.A. Moos, would continue to help the

Company in its growth path. The Board upon the

recommendation of Nomination and Remuneration

Committee decided to seek the approval of shareholders at

the ensuing Annual General Meeting in terms of the provisions

of the Amendment Regulations for continuation of the

directorships of above said Directors post March 31, 2019 till

their respective Original Term of appointment.

Accordingly, The Board recommends the Special

Resolutions, as set out at Item No. 5& 6 of the accompanying

Notice, for approval by the Members.

None of the Directors and Key Managerial Personnel of the

Company and their relatives, except Mr. D.T. Desai and Mr.

J.A. Moos and their relative(s), is in any way concerned or

interested (financially or otherwise), in the proposed

respective Special Resolutions set out at Item No. 5&6 of the

Notice.



Registered Office:




Gujarat

CIN: L25200GJ1981PLC004375

Tel: (02632) 226157



Mumbai, 28th May 2018

Antony Alapat

Company Secretary

Details of Director Seeking Appointment/Re-appointment at the Annual General Meeting

Particulars

DIN

Date of Birth

Age

Date of First Appointment on the Board

Qualifications

Expertise in specific functional areas

Directorships held in other public companies (excluding foreign

companies and Section 8 companies)

Memberships / Chairmanships of committees of other public

companies (includes only Audit Committee and Stakeholders'

Relationship Committee.)

Number of shares held in the Company as on 31st March 2018.

Number of meetings of the board attended during the year

Remuneration drawn and relationship with other directors and key

managerial personnel

Ms. Charulata Patel Mr. Jaymin Desai

00233935

13/07/1963

54

08/11/2014

MBBS

Hospital Administration,

Human Resource

Development and Public

Relations

Nil

Nil

3,83,911

4

Rs. 1.38 lacs in

FY 2017-18

No Relationship with

other directors and key


00156221

30/09/1960

57

23/06/1990

B.E (Chemical)

Chemical Engineering,

Management

Nil

Nil

1,03,042

6

Rs.75.63 lacs in

FY 2017-18

No Relationship with

other directors and key



11

Route Map of the Venue of AGM

The Club Resort is located on the bank of River Wanki,

Opposite Vashier Valley.

STATE HIGH WAY TO

VA

LS

AD

E

N S

W

TO

N.H

. N

O. 8 &

DH

AR

AM

PU

R

ABRAMA BOUNDARY

CLUB

W A N K I R I V E R

WA

NK

I

RI

VE

R

DR. DALJITSIN

G

EYE HOSPITAL

RESI

PLOT

EXCEL

ROAD TO ATUL & N.H. NO.8

OVER BRID

GE

STATE HIG

H WAY

PUNAM APPT.

VA

NK

I R

IVE

R

NANDANVAN

TOWN S

HIP VASHIER V

ALLEY

Ecoplast Limited

12

(Rs.'000)

31-03-2018 31-03-2017 31-03-2016 31-03-2015 31-03-2014

OPERATION

Sales (Net) 9,59,348 9,61,406 9,30,827 9,41,018 8,19,840

Other Income 16,144 10,352 3,359 3,560 2,254

Operating Profit 65,179 50,522 53,530 41,116 41,576

[Before Depreciation)

Profit before tax 46,968 32,665 36,746 22,832 26,975

Profit after Tax (including prior period items) 30,084 21,191 23,274 15,090 18,557

Dividend and Corporate Tax thereon 4,333 - 5,416 4,320 4,184

Retained earnings 25,751 21,191 17,858 10,770 14,373

Earnings per Share (Rs..) 9.91 7.69 7.76 5.03 6.19

[On Face Value of Rs.10/-]

ASSETS

Gross Block 3,42,293 3,31,717 2,92,319 2,77,648 2,86,475

Net Block 1,23,869 1,26,635 1,05,418 1,07,531 1,14,833

Net Current Assets 1,10,484 94,904 1,75,149 87,735 61,019

Non Current Investments 23,025 22,923 8,176 8,176 8,176

Long Term Loans & Advances 42,653 36,966 47,793 43,238 46,397

Total Assets 3,00,031 2,81,429 3,36,536 2,46,680 2,30,425

NET WORTH

Equity Capital 30,000 30,000 30,000 30,000 30,000

Reserves and Surplus 2,37,096 2,11,345 1,90,019 1,72,161 1,63,365

Net worth 2,67,096 2,41,345 2,20,019 2,02,161 1,93,365

Book value per share (Rs..) 89.03 80.45 73.34 67.39 64.46

[On Face Value of Rs.10/-]

BORROWINGS

Long Term 18,706 30,573 22,608 32,262 21,961

Short Term 74,117 98,267 72,555 84,517 1,23,422

92,823 1,28,839 95,163 1,16,780 1,45,383

RATIOS

Profit before tax to

Sales and other Income % 4.81 3.36 3.93 2.42 3.28

Profit before tax to

Net Worth % 17.58 13.53 16.70 11.29 13.95

Dividend to Equity Capital % 15 12 15 12 12

Dividend to Net Worth [Yield] % 2 - 2 2 2

Return on Capital Employed % 26 26 26 21 25

Dividend cover Times 6.94 - 4.30 3.49 4.44

Current Ratio Ratio 1.61:1 1.45:1 1.54:1 1.45:1 1.25:1

Long Term Debt:Equity Ratio 0.07:1 0.13:1 0.10:1 0.16:1 0.11:1

F I N A N C I A L H I G H L I G H T S


13

Sr.No.

DISCLOSURE OF DETAILS OF MEETINGS OF BOARD OF DIRECTORS HELDAND ATTENDED BY DIRECTORS AS REQUIRED UNDER SECRETARIAL STANDARD 1(SS-1).

MEETING OF THE BOARD OF DIRECTORSth thThe dates of the meeting were 08th April 2017, 22nd May 2017,29th June 2017, 27 August 2017, 27 November 2017,

th th13 February 2018, 17 March 2018

Name of Director No. of Board Meetings attended

1. Pheroze P. Kharas 4

2. Bhupendra M. Desai 7

3. Charulata N.Patel 4

4. Dhananjay T. Desai 4

5. Jehangir A. Moos 6

6. Jaymin B. Desai 6

7. Mukul B. Desai 7

AUDIT COMMITTEE MEETINGth thThe dates of the meeting were 08th April 2017, 22nd May 2017,29th June 2017, 27 August 2017, 27 November 2017,

th13 February 2018

Sr.No. Name of Director No. of Board Meetings attended

1. Mukul B. Desai 6




NOMINATION & REMUNERATION COMMITTEE MEETING

The dates of the meeting were 22nd May 2017


1. Mukul B. Desai 1




STAKEHOLDERS RELATIONSHIP COMMITTEE MEETING

The date of the meeting was 22nd May 2017




3. Mukul B. Desai 1

INDEPENDENT DIRECTORS MEETING

The date of the meeting was 13th February 2018


1. Mukul B. Desai 1



4. Dhananjay T. Desai 1

Ecoplast Limited

14

BOARD'S REPORTToThe Members,

.

1. FINANCIAL SUMMARY (in Rs.)

31-03-2018 31-03-2017

Net Sales 99,04,97,480 106,91,91,166

Other Income 1,61,43,679 10,351,958

Sales and Other Income 100,66,41,159 1,079,543,124

Operating Profit(before Depreciation and Tax) 65,178,974 50,522,060

Less : Depreciation 18,210,873 17,857,267

Profit before tax 4,69,68,101 46,968,101

Less :Provision for tax

Current Tax 1,67,57,000 89,33,000

Deferred tax Credit 473,288 605,456

Profit after Tax 2,97,37,813 2,30,04,755

Short Provision of Taxfor Prior Years 60,791

Net Profit after priorperiod items 2,97,37,813 2,30,65,546

Add : Balance broughtforward 212133393 193054428

Profit available forAppropriation 24,18,71,206 212,133,393

The Directors are pleased to present their Thirty-Sixth Annual Report and Audited Financial Statements for the year ended

st31 March, 2018

the year ended 31 March 2018 and in particular, Sales, absolute expenses, elements of Working Capital (Inventories, Trade payable, other current assets/current liabilities etc.) and ratios in percentage of sales, are not comparable with the figures of the previous year.

3. Operations/State of Company's Affairs

During the year under review, sales volume has increased by marginally 0.45% while sales value has been reduced by 8% to Rs 99,04,97,480/- from Rs 106,91,91,166/- in the previous year.

The profit before tax has increased by 43.79% to Rs. 4,69,68,101/- from Rs. 3,26,64,793/- in the previous year.

During the year under review availability of raw materials was comfortable however volatility in Exchange rate and upward phase in crude price will reflect in Raw Material Price which may put pressure on margins during current year however with more domestic capacity commissioned, Raw Material availability is expected to be stable during current year.

No Material Changes have occurred from the end of the Financial Year till the date of this report affecting the Financial Position of the Company.

There is no Change in the nature of business during the year under review.

No significant and material orders have been passed by the regulators or Courts or Tribunals impacting the going concern status and the company's operations in future during the year under review.

4. DIVIDEND

The Board of Directors have recommended a dividend of Rs.1.5 per equity share (15%) for the year 2017-18.(Previous year Rs.1.2 per equity share 12 %) for approval at the Annual General Meeting. The dividend if approved, will result in a cash outflow of Rs54.16 lacs (including dividend distribution tax of Rs. 9.16 ) as compared to Rs. 43.33 lacs including dividend distribution tax of 7.33 lacs in previous year.

5. BOARD MEETINGS:

The Board of Directors met Seven times during the Financial Year 2017-18.

6. DIRECTORS AND KEY MANANGERIAL PERSONNEL :

Mr. Pheroze Kharas, Director / Chairman, retired by rotation at the last Annual General Meeting held on 20th September 2017. The Board places on record its sincere appreciation for the assistance and guidance provided by him during his tenure as Director of the Company.

The Board at its meeting held on 27th November, 2017 has appointed Mr. Mukul B. Desai, Director as Chairman of the Company with effect from 27th November 2017.

Mrs. Charulata Patel, Director of the Company, would retire by rotation, at the ensuing Annual General Meeting and being eligible offers herself for re-appointment

The members at the 33rd Annual General Meeting held on 12th September 2015 had approved the appointment of Mr.

2. Adoption of Indian Accounting Standards (Ind AS)

The Company has adopted Indian Accounting Standards (Ind AS) notified by the Ministry of Corporate Affairs with effect from 1st April, 2017, with a transition date of 1st April, 2016. Ind AS 101 - First time adoption of Indian Accounting Standards requires that all Ind AS's and interpretations that are issued an effective be applied retrospectively and consistently for all financial years presented.

The adoption of Ind AS and introduction of GST with effect from 1st, July 2017 has resulted in lower reporting of sales in the current year in comparison to the sales reported under the pre-GST/pre Ind AS structure of indirect taxes. With the change in structure of indirect taxes, expenses are also being reported net of taxes. Accordingly, Financial statements for


15

Jaymin Desai as Managing Director of the Company for a period of 3 years from 1st October, 2015 to 30th September, 2018. The Board Proposes to re-appoint him as the Managing Director for a further period of 3 years i.e from 1st October, 2018 to 30th September, 2021 at the ensuing Annual General Meeting.

SEBI vide its Notification No. SEBI/ LAD-NRO/ GN/ 2018/ 10 dated May 09, 2018 has notified SEBI (Listing Obligations and Disclosures Requirement) (Amendment) Regulation, 2018,In which there is a provision that Non Executive Director above the age of 75 years will be appointed or continued only after passing special resolution.

Considering their vast expertise and knowledge, The Board proposes continuation of Mr. Dhananjay T Desai , age 75 and Mr. Jehangir A. Moos, age 74 till their original tenure of directorship i.e 11th September, 2020 and 19th September, 2019.

7. DECLARATION FROM INDEPENDENT DIRECTORS

The Company has received necessary declarations from each Independent Director of the Company under Section 149(7) of the Companies Act, 2013 that the Independent Directors of the Company meet the criteria of their Independence laid down in Section 149(6) of the Act and there has been no change in the circumstances which may affect their status as independent director during the year. In the opinion of the Board, the Independent directors possess appropriate balance of skills, experience and knowledge, as required.

8. AUDIT COMMITTEE

The Audit Committee of the company consists of following members.

I. Mr. Mukul Desai-Chairman

II. Mr. Jehangir Moos

III. Mr. Bhupendra Desai

9. POLICY ON DIRECTORS' APPOINTMENT AND REMUNERATION AND CRITERIA FOR INDEPENDENT DIRECTORS

The Remuneration Policy for directors and senior management and the Criteria for selection of candidates for appointment as directors, independent directors, senior management are placed on the website of the Company weblink < http://www.ecoplastindia.com/ Remuneration Policy for directors and senior management.html>

There has been no change in the policies since the last fiscal year.

We affirm that the remuneration paid to the directors is as per the terms laid out in the remuneration policy of the Company

10. VIGIL MECHANISM

The Company is committed to adhere to the highest standards of ethical, moral and legal conduct of business operations. To maintain these standards, the Company encourages its employees who have concerns about suspected misconduct to come forward and express these

concerns without fear of punishment or unfair treatment. A Vigil (Whistle Blower) mechanism formulated by the Company provides a channel to the employees and Directors to report to the management concerns about unethical behaviour, actual or suspected fraud or violation of the Codes of conduct or policy. The mechanism provides for adequate safeguards against victimization of employees and Directors to avail of the mechanism and also provide for direct access to the Managing Director/ Chairman of the Audit Committee in exceptional cases.

11. DIRECTOR'S RESPONSIBILITY STATEMENT:

In pursuance of section 134 (5) of the Companies Act, 2013, the Directors hereby confirm that:

(a) in the preparation of the annual accounts, the applicable accounting standards had been followed along with proper explanation relating to material departures;

(b) the directors have selected such accounting policies and applied them consistently and made judgments and estimates that are reasonable and prudent so as to give a true and fair view of the state of affairs of the company at the end of the financial year and of the profit and loss of the company for that period;

(c) the directors have taken proper and sufficient care for the maintenance of adequate accounting records in accordance with the provisions of this Act for safeguarding the assets of the company and for preventing and detecting fraud and other irregularities;

(d) the directors have prepared the annual accounts on a going concern basis; and

(e) the directors, have laid down internal financial controls to be followed by the company in consultation with the experts and that such internal financial controls are adequate and were operating effectively.

(f) the directors have devised proper systems in consultation with the experts to ensure compliance with the provisions of all applicable laws and that such systems were adequate and operating effectively.

12. DETAILS OF ADEQUACY OF INTERNAL FINANCIAL CONTROLS

The Company has a proper and adequate system of internal financial controls commensurate with its nature and size of business and meets the following objectives:

v Providing assurance regarding the effectiveness and efficiency of operations;

v Efficient use and safeguarding of resources;

v Compliance with policies, procedures and applicable laws and regulations; and

v Transactions being accurately recorded and reported timely.

v The Company has a budgetary control system to monitor expenditures and operations against budgets on an ongoing basis.

Ecoplast Limited

16

i. Guarantees: Rs.4,06,50,497 /- to Bank & Financial Institution for the Loans advanced to Synergy Films Private Limited Wholly Owned Subsidiary.

ii. Investments; Rs.2,30,25,048/-(Before Ind As Adjustment it was Rs.81,76,257) for 11,95,360 Equity Shares of Rs.10 each fully paid up in Synergy Films Private Limited Wholly Owned Subsidiary

21. RISK MANAGEMENT POLICY :

The Company has adopted a Risk Management Policy which is implemented throughout the Organisation; Special Emphasis on Risk Management is given during the Annual Budgeting Process and Periodical Monthly Meetings.

22. CORPORATE SOCIAL RESPONSIBILTY POLICY :

The Provisions of Corporate Social Responsibility under section 135 of the Companies Act, 2013 are not applicable to the company. However as a part of CSR initiative, The Company has adopted 15 Mentally Challenged Children who are under rehabilitation in Jaina anupam N.Parmar Charitable Trust, Valsad.

23. RELATED PARTY TRANSACTIONS

Particulars of Contracts or Arrangements with Related parties referred to in Section 188(1) in Form AOC- 2 are annexed as Annexure - V to this Report.

24. FORMAL ANNUAL EVALUATION:

An annual evaluation of the Board's own performance, Board committees and individual directors was carried out pursuant to the provisions of the Act in the following manner:

v The Internal Auditor also regularly reviews the adequacy of internal financial control system.

13. SUBSIDIARY COMPANY

A Statement Containing the Salient features of the Financial Statements of the subsidiary Company is annexed as Annexure- I as a part of this Report.

During the year under review, No Company has become or ceased to be Company's subsidiary, joint venture or associate company.

Further, pursuant to the provisions of Section 136 of the Act, the financial statements of the Company along with relevant documents and separate audited accounts in respect of the subsidiary are available on the website of the Company.

14. EXTRACT OF ANNUAL RETURN:

As provided under sub Section (3) of Section 92 of the Act, the extract of annual return in Form MGT-9 is enclosed, which forms part of the directors' report as Annexure II

15. AUDITORS:

At the 35th Annual General Meeting of the Company held on 20th day of September, 2017, M/s. Y.B. Desai & Associates, Chartered Accountants, Surat, (ICAI Registration No. 102368W) were appointed as the Auditors of the Company from the conclusion of 35th AGM till the conclusion of the 40th AGM of the Company to be held in the year 2022.

16. SECRETARIAL AUDIT:

Pursuant to the provisions of Section 204 and other applicable provisions, if any, of the Companies Act, 2013, M/s Parikh & Associates,Practising Company Secretaries were appointed as the Secretarial Auditors for auditing the secretarial records of the Company for the financial year 2017-2018.

Secretarial audit report as provided by M/s Parikh & Associates, Practising Company Secretaries is annexed to this Report as Annexure- III.

17. AUDITORS' REPORT AND SECRETARIAL AUDITORS' REPORT:

The Auditors' Report and Secretarial Auditors' Report do not contain any qualifications, reservations or adverse remarks.

18. CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION, FOREIGN EXCHANGE EARNINGS AND OUTGO:

Information in accordance with Clause (m) of Sub-section (3) of Section 134 of the Companies Act, 2013, read with the Companies (Accounts) Rules, 2014 is annexed to this Report as Annexure -IV.

19. DEPOSITS:

The Company has not accepted any deposits during the year under report.

20. PARTICULARS OF LOANS, GUARANTEES OR INVESTMENTS:

As on 31st March 2018 the Company has provided the following Loans, Guarantees and Investments under section 186 of the Companies Act, 2013.

i. Loans :Rs.3,51,00,00/- to Synergy Films Private Limited Wholly Owned Subsidiary

1.

Performanceevaluation

performed by

Sr.No.

Performanceevaluation of

Criteria

Each Individualdirectors

Nomination andRemunerationCommittee

Attendance, Contribution to the Board and committee meetings like preparedness on the issues to be discussed, meaningful and constructive contribution and g u i d a n c e p r o v i d e d , k e y performance aspects in case of executive directors etc.

2. Independentdirectors;

Entire Board ofDirectorsexcluding thedirector who isbeing evaluated

A

.

ttendance, Contribution to the Board and committee meetings like preparedness on the issues to be discussed, meaningful and constructive contribution, and guidance provided etc

3. Board, and itscommittees

All directors B o a r d c o m p o s i t i o n a n d structure; effectiveness of Board processes, information and functioning, fulfillment of key responsibilities, performance of specific duties and obligations, timely flow of information etc.

The assessment of committees based on the terms of reference o f t h e c o m m i t t e e s a n d effectiveness of the meetings


17

30. MANAGEMENT DISCUSSION ANALYSIS

In terms of the provisions of Regulation 34 of the Securities

and Exchange Board of India (Listing Obligations and

Disclosure Requirements) Regulations, 2017, the

Management's discussion and analysis is set out in this

Annual Report.

31. SECRETARIAL STANDARDS

The Directors have devised proper systems to ensure

compliance with the provisions of all applicable Secretarial

Standards issued by the Institute of Company Secretaries of

India and that such systems are adequate and operating

effectively.

32. ACKNOWLEDGMENT

The Directors wish to convey their appreciation to Customers,

Suppliers, Bankers, other Stakeholders and specially the

employees for their co-operation. The Directors also

appreciate the confidence reposed in the Management of the

Company by its shareholders.

For and on behalf of the Board of Directors

Mukul B. Desai

CHAIRMAN

DIN:00015126


25. PARTICULARS OF EMPLOYEES

Pursuant to Section 197 of the Act read with rule 5(1) of the

Companies (Appointment and Remuneration of Managerial

Personnel) Rules, 2014 the particulars of employees are

annexed as Annexure - VI to this Report.

26. DISCLOSURE AS PER SEXUAL HARRASSMENT OF

WOMEN AT WORKPLACE (PREVENTION,PROHIBITION

AND REDRESSAL) ACT, 2013:

The Company has zero tolerance for sexual harassment at

workplace and has adopted a policy on prevention, prohibition

and Redressal of sexual harassment at workplace in line with

the provisions of Sexual Harassment of Women at Workplace

(Prevention, Prohibition and Redressal) Act, 2013 and the

rules framed there under. During the financial year 2017-18,

the Company has not received any complaints on sexual

harassment.

27. LISTING WITH STOCK EXCHANGE:

The Company confirms that it has paid the Annual Listing

Fees for the year 2018-2019 to BSE where the Company's

Shares are listed.

28. INSIDER TRADING REGULATIONS AND CODE OF

DISCLOSURE

The Board of Directors has adopted the Code of Practices and

Procedures for Fair Disclosure of Unpublished Price Sensitive

Information and Code of Internal Procedures and Conduct for

Regulating, Monitoring and Reporting of Trading by Insiders in

accordance with the requirements of the SEBI (Prohibition of

Insider Trading) Regulation, 2015 and is available on our

website http://www.ecoplastindia.com/code-of-practices-

and-procedures.html

29. CORPORATE GOVERNANCE:

In terms of the Regulation 15(2) of Securities and Exchange

Board of India (Listing Obligations and Disclosure

Requirements) Regulations, 2017, The Company is not

required to comply with corporate governance provisions of

Securities and Exchange Board of India (Listing Obligations

and Disclosure Requirements) Regulations, 2017 during the

financial year 2017-18.

Details of Directors Remuneration as required under

Schedule V Part II, Section II (A) (IV) of Companies Act 2013 is

annexed as Annexure - VII to this Report.

Ecoplast Limited

18

Salient features of the Financial Statement of the Subsidiary Company

As at 31 March,2018

As at 31 March,2017

1) Name of Subsidiary Company : Synergy Films Private Limited

2) Reporting Currency : INR

3) Capital : Rs. 1,19,53,600 1,19,53,600

4) Reserves : Rs. 2,608,019 (4,549,595)

5) Total Assets : Rs. 47,239,931 57,599,749

6) Total Liabilities : Rs. 47,239,931 57,599,749

7) Investments : Rs. - -

8) Turnover / Total Income : Rs. 113,363,644 132,165,455

9) Profit Before Tax : Rs. 6,566,225 5,751,161

10) Provision for Taxation : Rs. (591,390)

11) Profit After Tax : Rs. 7,157,615 5,751,161

12) Proposed Dividend : Rs. Nil Nil

13) Country : INDIA

ANNEXURE – I


19

I. REGISTRATION AND OTHER DETAILS:

i) CIN:- L25200GJ1981PLC004375

ii) Registration Date:7th May 1981

iii) Name of the Company: ECOPLAST LIMITED

iv) Category / Sub-Category of the Company:

a) Category: Public Company

b) Sub Category: Limited by Shares

Company having Share Capital

v) Address of the Registered office and contact details:

Registered Office Address: National Highway No 8, Water Work Cross Road,

Abrama, Valsad-396001, Gujarat.

Tel. : 02632-226157 / 226560,

Fax. : 02632-253633

Email : [email protected]


vi) Whether listed company Yes

vii) Name, Address and Contact details of Registrar and Transfer Agent:

Name : TSR Darashaw Ltd

Address: 6-10, Haji Moosa Patrawala Industrial Estate, 20 Dr. E Moses Road,

Mahalaxmi, Mumbai-400011, Maharashtra.

Sr.No.

Name and Descriptionofmain products / services

NIC Code of theProduct/ service

% to total turnoverof the company

Manufacture of semi-finished of plastic products(plastic plates, sheets, blocks, film, foil, strip etc.)

Manufacturing, Processing and Selling ofCo extruded Multilayer Polyethylene films

1. 22201 100%

III. PARTICULARS OF HOLDING, SUBSIDIARY AND ASSOCIATE COMPANIES

Sr.No.

Name and Addressof the Company

1.Subsidiary 100% 2(87)(ii)

CIN/GLNHolding/ Subsidiary /

Associate% of shares

heldApplicable

Section

Synergy FilmsPrivate Limited

U25206AS2007PTC008292

ANNEXURE –II

Annual Return Extracts in MGT 9

Form No. MGT-9

EXTRACT OF ANNUAL RETURNstas on the financial year ended on 31 March 2018

[Pursuant to section 92(3) of the Companies Act, 2013 and rule 12(1) of the

Companies (Management and Administration) Rules, 2017]

II. PRINCIPAL BUSINESS ACTIVITIES OF THE COMPANY

All the business activities contributing 10 % or more of the total turnover of the company shall be stated:-

Ecoplast Limited

20

IV. SHARE HOLDING PATTERN (Equity Share Capital Breakup as percentage of Total Equity)

i) Category-wise Share Holding

Category ofShareholders

No. of Shares held at the beginningof the year 01.04.2017

No. of Shares held at the endof the year 31.03.2018

Demat Physical Total

%Changeduring

the yearDemat Physical Total% of Total

Shares% of Total

Shares

(A) Promoters

(1) Indian

(a) Individuals / HUF 1,473,175 0 1,473,175 49.11% 1,489,924 0 1,489,924 49.66% 0.56%

(b) Cental Government 0 0 0 0.00% 0 0 0 0.00% 0.00%

(c) State Governments(s) 0 0 0 0.00% 0 0 0 0.00% 0.00%

(d) Bodies Corporate 513,267 0 513,267 17.11% 513,267 0 513,267 17.11% 0.00%

(e) Financial Institutions / Banks 0 0 0 0.00% 0 0 0 0.00% 0.00%

(f) Any other (specify) 0 0 0 0.00% 0 0 0 0.00% 0.00%

Sub-Total (A) (1) 1,986,442 0 1,986,442 66.21% 2,003,191 0 2,003,191 66.77% 0.56%

(2) Foreign 0 0.00% 0 0.00% 0.00%

(a) Non-Resident Individuals 0 0 0 0.00% 0 0 0 0.00% 0.00%

(b) Other Individuals 0 0 0 0.00% 0 0 0 0.00% 0.00%

(c) Bodies Corporate 0 0 0 0.00% 0 0 0 0.00% 0.00%

(d) Banks / FI 0 0 0 0.00% 0 0 0 0.00% 0.00%

(e) Any Other (specify) 0 0 0 0.00% 0 0 0 0.00% 0.00%

Sub-Total (A) (2) 0 0.00% 0 0.00% 0.00%

Total Shareholding of

Promoter (A) = (A)(1)+(A)(2) 1,986,442 0 1,986,442 66.21% 2,003,191 0 2,003,191 66.77% 0.56%

(B) Public Shareholding

(1) Institutions

(a) Mutual Funds 0 0 0 0.00% 0 0 0 0.00% 0.00%

(b) Financial Institutions / Banks 0 0 0 0.00% 0 0 0 0.00% 0.00%

(c) Cental Government 0 0 0 0.00% 0 0 0 0.00% 0.00%

(d) State Governments(s) 0 0 0 0.00% 0 0 0 0.00% 0.00%

(e) Venture Capital Funds 0 0 0 0.00% 0 0 0 0.00% 0.00%


21

Category ofShareholders

No. of Shares held at the beginningof the year 01.04.2017

No. of Shares held at the endof the year 31.03.2018

Demat Physical Total

%Changeduring

the yearDemat Physical Total% of Total

Shares% of Total

Shares

(f) Insurance Companies 0 0 0 0.00% 0 0 0 0.00% 0.00%

(g) Foreign Institutional Investors 3090 0 3090 0.10% 0 0 0 0.00% -0.10%

(h) Foreign Venture Capital Funds 0 0 0 0.00% 0 0 0 0.00% 0.00%

(i) Any Other (Specify) 0 0 0 0.00% 0 0 0 0.00% 0.00%

Sub-Total (B) (1) 3090 0 3090 0.10% 0 0 0 0.00% -0.10%

(2) Non-Institutions 0.00%

(a) Bodies Corporate

i) Indian 73,817 7,201 81,018 2.70% 59,966 5,800 65,766 2.19% -0.51%

ii) Overseas 0 0 0 0.00% 0 0 0 0.00% 0.00%

(b) Individuals

(i) Individual Shareholders

holding nominal Share

Capital upto Rs.1 Lakh 578,038 122,200 700,238 23.35% 553,195 85,500 638,695 21.29% -2.06%

(ii) Individual Shareholders holding

nominal Share Capital in

excess of Rs.1 Lakh 215,780 0 215,780 7.19% 246,772 0 246,772 8.23% 1.03%

(c) Any Other : Bodies Corp -NBFC 3,282 0 3,282 0.11% 0 0 0 0.00% -0.11%

(i) Directors & their relatives 0 0 0 0.00% 35,326 0 35,326 1.18% 1.18%

Sub-total (B) (2) 10,150 0 10,150 0.34% 10,250 0 10,250 0.34% 0.00%

Total Public Shareholding

(B) = (B)(1)+(B)(2) 881,067 129,401 1,010,468 33.68% 905,509 91,300 996,809 33.23% -0.45%

TOTAL (A)+(B) 884,157 129,401 1,013,558 33.79% 905,509 91,300 996,809 33.23% -0.56%

(C) Shares held by Custodians

Custodian for GDRs & ADRs 2,870,599 129,401 3,000,000 100.00% 2,908,700 91,300 3,000,000 100.00% 0.00%

GRAND TOTAL (A)+(B)+(C) 0 0 0 0.00% 0 0 0 0.00% 0.00%

Ecoplast Limited

22

ii) Shareholding of Promoters

Shareholding at the beginningof the year 01.04.2017

Shareholding at the endof the year 31.03.2018

No. ofShares

1 Bhupendra Bhikhubhai Desai 8,640 0.29 8,640 0.29 0.00

2 Nilay Nitinkumar Patel 11,565 0.39 11,565 0.39 0.00

3 Pheroze Pestonji Kharas 81,980 2.73 61,980 2.07 -0.67

4 Kunal Plastics Private Limited 36,440 1.21 36,440 1.21 0.00

5 Silver Stream Properties

Private Limited 476,827 15.89 476,827 15.89 0.00

6 Amita Jaymin Desai 541,846 18.06 542,146 18.07 0.01

7 Charulata Nitinbhai Patel 383,911 12.80 383,911 12.80 0.00

8 Indumati Balvantrai Desai 128,137 4.27 128,137 4.27 0.00

9 Jankee J Desai 34,320 1.14 47,116 1.57 0.43

10 Jaymin Balvantrai Desai 103,042 3.43 103,042 3.43 0.00

11 Jaymin Balvantrai Desai ( Huf ) 6,176 0.21 6,176 0.21 0.00

12 Naheed Rushad Divecha 0 0.00 0 0.00 0.00

13 Nargis Pheroze Kharas 23,400 0.78 23,400 0.78 0.00

14 Nitinkumar Manubhai Patel 96,461 3.22 118,061 3.94 0.72

15 Stuti J Desai 42,412 1.41 47,116 1.57 0.16

16 Yasmin Karl Divecha 5,423 0.18 0 0.00 -0.18

17 Aditya Nitinkumar Patel 5,862 0.20 8,634 0.29 0.09

Total 1,986,442 66.21 2,003,191 66.77 0.56

Sr. No. Shareholder's Name

% changein shareholdingduring

the year

% of totalSharesof the

company

No. ofShares

% of SharesPledged /

encumberedto totalshares

% of totalSharesof the

company

% of SharesPledged /

encumberedto totalshares


23

iii) Change in Promoter's Shareholding (please specify, if there is no change)


No. ofShares

1 Amita Jaymin Desai 01-Apr-2017 At the beginning of the year 5,41,846 18.06% 5,41,846 18.06%

21-Jul-2017 Increase 300 0.01% 542,146 18.07%

31-Mar-2018 At the end of the year 542,146 18.07% 542,146 18.07%

2 Silver Stream Properties LLP 01-Apr-2017 At the beginning of the year 4,76,827 15.89% 4,76,827 15.89%

No Change in Shareholding

31-Mar-2018 At the end of the year 4,76,827 15.89% 4,76,827 15.89%

3 Charulata Nitin Patel 01-Apr-2017 At the beginning of the year 3,83,911 12.80% 3,83,911 12.80%



4 Indumati Balvantrai Desai 01-Apr-2017 At the beginning of the year 1,28,137 4.27% 1,28,137 4.27%



5 Jaymin Balvantrai Desai 01-Apr-2017 At the beginning of the year 1,03,042 3.43% 1,03,042 3.43%



6 Pheroze Pestonji Kharas 01-Apr-2017 At the beginning of the year 81,980 2.73% 81,980 2.73%

30-Mar-2018 Decrease -20,000 -0.67% 61,980 2.07%


7 Nitinkumar Manubhai Patel 01-Apr-2017 At the beginning of the year 96,461 3.22% 96,461 3.22%

21-Apr-2017 Increase 5,000 0.17% 101,461 3.39%

10-Nov-2017 Increase 500 0.02% 101,961 3.41%

17-Nov-2017 Increase 1,100 0.04% 103,061 3.44%

30-Mar-2018 Increase 15,000 0.50% 118,061 3.94%


8 Kunal Plastics Private Limited 01-Apr-2017 At the beginning of the year 36,440 1.21% 36,440 1.21%


Sr. No.

Name of theShare Holder Date Reason

Cumulative Shareholdingduring the year

No. ofShares

% of totalShares of the

company


company

Ecoplast Limited

24


9 Nargis Pheroze Kharas 01-Apr-2017 At the beginning of the year 23,400 0.78% 23,400 0.78%



10 Stuti J Desai 01-Apr-2017 At the beginning of the year 42,412 1.41% 42,412 1.41%

12-Jan-2018 Increase 4,704 0.16% 47,116 1.57%


11 Nilay Nitinkumar Patel 01-Apr-2017 At the beginning of the year 11,565 0.39% 11,565 0.39%



12 Jankee J Desai 01-Apr-2017 At the beginning of the year 34,320 1.14% 34,320 1.14%

10-Nov-2017 Increase 12,796 0.43% 47,116 1.57%


13 Bhupendra B. Desai 01-Apr-2017 At the beginning of the year 8,640 0.29% 8,640 0.29%


14 Jaymin Balvantrai Desai (HUF) 01-Apr-2017 At the beginning of the year 6,176 0.21% 6,176 0.21%



15 Aditya Nitinkumar Patel 01-Apr-2017 At the beginning of the year 5,862 0.20% 5,862 0.20%

17-Nov-2017 Increase 1,100 0.04% 6,962 0.24%

30-Mar-2018 Increase 1,672 0.06% 8,634 0.29%


16 Yasmin Karl Divecha 01-Apr-2017 At the beginning of the year 5,423 0.18% 5,423 0.18%

06-Oct-2017 Increase 250 0.01% 5,673 0.19%

10-Nov-2017 Decrease -5,673 -0.19% 0 0.00%

31-Mar-2018 At the end of the year 0 0.00% 0 0.00%


No. ofShares

Sr. No.



No. ofShares


company


company


25


No. ofShares

1 Vinay Rungta 01-Apr-2017 At the beginning of the year 60,901 2.03% 60,901 2.03%

07-Apr-2017 Increase 800 0.03% 61,701 2.06%

14-Apr-2017 Increase 300 0.01% 62,001 2.07%

21-Apr-2017 Increase 1,750 0.06% 63,751 2.13%

05-May-2017 Increase 700 0.02% 64,451 2.15%

12-May-2017 Increase 550 0.02% 65,001 2.17%

26-May-2017 Increase 8,000 0.27% 73,001 2.43%

02-Jun-2017 Increase 500 0.02% 73,501 2.45%

09-Jun-2017 Increase 84 0.00% 73,585 2.45%

16-Jun-2017 Increase 1,716 0.06% 75,301 2.51%

23-Jun-2017 Increase 950 0.03% 76,251 2.54%

30-Jun-2017 Increase 2,250 0.08% 78,501 2.62%

07-Jul-2017 Increase 3,116 0.10% 81,617 2.72%

14-Jul-2017 Increase 2,284 0.08% 83,901 2.80%

21-Jul-2017 Increase 600 0.02% 84,501 2.82%

28-Jul-2017 Increase 500 0.02% 85,001 2.83%

04-Aug-2017 Increase 3,000 0.10% 88,001 2.93%

25-Aug-2017 Increase 2,111 0.07% 90,112 3.00%

01-Sep-2017 Increase 289 0.01% 90,401 3.01%

29-Sep-2017 Increase 600 0.02% 91,001 3.03%

06-Oct-2017 Increase 1,427 0.05% 92,428 3.08%

27-Oct-2017 Increase 200 0.01% 92,628 3.09%

05-Jan-2018 Decrease -1,627 -0.05% 91,001 3.03%

12-Jan-2018 Decrease -1,000 -0.03% 90,001 3.00%

16-Feb-2018 Decrease -410 -0.01% 89,591 2.99%

23-Feb-2018 Increase 410 0.01% 90,001 3.00%


2 Investor Education And 01-Apr-2017 At the beginning of the year 0 0.00 0 0.00

Protection Fund Authority 01-Dec-2017 Increase 35,201 1.17% 35,201 1.17%

Sr. No.



No. ofShares


company


company

iv) Shareholding Pattern of top ten Shareholders (other than Directors, Promoters and Holders of GDRs and ADRs):

Ecoplast Limited

26

Ministry Of Corporate Affairs 22-Dec-2017 Increase 125 0.01% 35,326 1.18%


3 Byna Murali 01-Apr-2017 At the beginning of the year 0 0.00 0 0.00

23-Feb-2018 Increase 28,068 0.94% 28,068 0.94%

02-Mar-2018 Increase 3,932 0.13% 32,000 1.07%


4 Kalpesh Bhupendra Vora 01-Apr-2017 At the beginning of the year 30,843 1.03% 30,843 1.03%

04-Aug-2017 Decrease -301 -0.01% 30,542 1.02%


5 Mitesh Vora 01-Apr-2017 At the beginning of the year 25,532 0.85% 25,532 0.85%


6 M K Shroff 01-Apr-2017 At the beginning of the year 24,256 0.81% 24,256 0.81%

11-Aug-2017 Decrease -256 -0.01% 24,000 0.80%

18-Aug-2017 Decrease -500 -0.02% 23,500 0.78%

01-Sep-2017 Decrease -1,440 -0.05% 22,060 0.74%

29-Dec-2017 Increase 9,140 0.30% 31,200 1.04%

23-Feb-2018 Decrease -140 0.00% 31,060 1.04%

02-Mar-2018 Decrease -4,164 -0.14% 26,896 0.90%

09-Mar-2018 Decrease -2,660 -0.09% 24,236 0.81%

16-Mar-2018 Decrease -2,950 -0.10% 21,286 0.71%


7 Kalpana Prakash Pandey 01-Apr-2017 At the beginning of the year 0 0.00 0 0.00

10-Nov-2017 Increase 4,586 0.15% 4,586 0.15%

17-Nov-2017 Increase 6,725 0.22% 11,311 0.38%

24-Nov-2017 Increase 3,722 0.12% 15,033 0.50%

01-Dec-2017 Increase 3,852 0.13% 18,885 0.63%


8 Abhay Ratilal Jasani 01-Apr-2017 At the beginning of the year 18,416 0.61% 18,416 0.61%


9 Qamar Afroz Shaikh 01-Apr-2017 At the beginning of the year 18,000 0.60% 18,000 0.60%


No. ofShares

Sr. No.



No. ofShares


company


company


27


10 Saguna Finstock Pvt Ltd 01-Apr-2017 At the beginning of the year 12,500 0.42% 12,500 0.42%


11 Mmd Securities Pvt. Ltd. 01-Apr-2017 At the beginning of the year 20,000 0.67% 20,000 0.67%

07-Apr-2017 Decrease -150 -0.01% 19,850 0.66%

14-Apr-2017 Decrease -650 -0.02% 19,200 0.64%

21-Apr-2017 Decrease -1,015 -0.03% 18,185 0.61%

28-Apr-2017 Decrease -325 -0.01% 17,860 0.60%

19-May-2017 Decrease -775 -0.03% 17,085 0.57%

26-May-2017 Decrease -9,100 -0.30% 7,985 0.27%

16-Jun-2017 Decrease -50 0.00% 7,935 0.26%

23-Jun-2017 Decrease -500 -0.02% 7,435 0.25%

07-Jul-2017 Decrease -290 -0.01% 7,145 0.24%

21-Jul-2017 Increase 3 0.00% 7,148 0.24%

04-Aug-2017 Decrease -1,000 -0.03% 6,148 0.20%

08-Sep-2017 Increase 25,935 0.86% 32,083 1.07%

13-Oct-2017 Decrease -11,750 -0.39% 20,333 0.68%

17-Nov-2017 Decrease -1,275 -0.04% 19,058 0.64%

01-Dec-2017 Increase 401 0.01% 19,459 0.65%

09-Feb-2018 Decrease -445 -0.01% 19,014 0.63%

16-Feb-2018 Decrease -4,311 -0.14% 14,703 0.49%

23-Feb-2018 Decrease -400 -0.01% 14,303 0.48%

16-Mar-2018 Decrease -1,930 -0.06% 12,373 0.41%


12 Varghese Daniel 01-Apr-2017 At the beginning of the year 4,944 0.16% 4,944 0.16%

14-Apr-2017 Increase 251 0.01% 5,195 0.17%

05-Jan-2018 Increase 805 0.03% 6,000 0.20%

12-Jan-2018 Increase 3,542 0.12% 9,542 0.32%

26-Jan-2018 Increase 1,168 0.04% 10,710 0.36%



No. ofShares

Sr. No.



No. ofShares


company


company

Ecoplast Limited

28


No. ofShares

1. Jaymin Balvantrai Desai 01-Apr-2017 At the beginning of the year 1,03,042 3.43% 1,03,042 3.43%



2. Charulata Nitin Patel 01-Apr-2017 At the beginning of the year 3,83,901 12.80% 3,83,901 12.80%



3. Mukul B Desai 01-Apr-2017 At the beginning of year 9650 0.32% 9650 0.32%



4. Jehangir Adi Moos 01-Apr-2017 At the beginning of the year 500 0.02% 500 0.025



5. Bhupendra M. Desai 01-Apr-2017 At the beginning of the year 100 0.003% 100 0.003%



6. Pheroze Pestonji* Kharas 01-Apr-2017 At the beginning of the year 81,980 2.73% 81,980 2.73%

30-Mar-2018 Decrease -20,000 -0.67% 61,980 2.07%


7. Dhananjay Thakorbhai Desai 01-Apr-2017 At the beginning of the year 0 0.00 0 0.00


31-Mar-2018 At the end of the year 0 0.00 0 0.00

8. Mahadev Dhirubhai Desai 01-Apr-2017 At the beginning of the year 0 0.00 0 0.00



9. Antony Pius Alapat 01-Apr-2017 At the beginning of the year 0 0.00 0 0.00



Sr. No.



No. ofShares


company


company

v) Shareholding of Directors and Key Managerial Personnel:

*Retired as a Director of the Company on 20th September 2017.


29

Indebtedness at the beginning of the financial year

i. Principal Amount 13,24,07,571 83,59,819 0 14,07,67,390

ii. Interest due but not paid

iii. Interest accrued but not due

Total (i+ii+iii) 13,24,07,571 83,59,819 0 14,07,67,390

Change in Indebtedness during the financial year

Addition 0 0 0 0

Reduction (3,56,56,580) (3,59,819) 0 (3,60,16,399)

Net Change (3,56,56,580) (3,59,819) 0 (3,60,16,399)

Indebtedness at the end of the financial year

i. Principal Amount 9,67,50,990 80,00,000 0 10,47,50,990

ii. Interest due but not paid 0 0 0 0

iii. Interest accrued but not due 0 0 0 0

Total (i+ii+iii) 9,67,50,990 80,00,000 0 10,47,50,990

Secured Loansexcludingdeposits

UnsecuredLoans Deposits

TotalIndebtedness

V. INDEBTEDNESS

Indebtedness of the Company including interest outstanding/accrued but not due for payment (in Rs.)

Ecoplast Limited

30

VI. REMUNERATION OF DIRECTORS AND KEY MANAGERIAL PERSONNEL

A. Remuneration to Managing Director, Whole-time Directors and/or Manager:

1. Gross salary

(a) Salary as per provisions contained in section 17(1) of the Income-tax Act, 1961 73,12,800

(b) Value of perquisites u/s 17(2) Income-tax Act, 1961 9,67,596

(c) Profits in lieu of salary under section 17(3) Income-tax Act, 1961 Nil

2. Stock Option Nil

3. Sweat Equity Nil

4. Commission -as of Profit- Nil

5. Others, please specify Nil

Total (A) 82,80,396

Ceiling as per the Act 1,06,68,000

Sr.No. Particulars of Remuneration

Managing Director

Jaymin Desai

Ÿ The Company doesn't have any Whole-time Director or Manager.

B. Remuneration to other directors:

Name of DirectorsTotal

Amount

3. Independent Directors Mukul Jehangir Bhupendra

Desai Moos Desai

Fee for attending board committee meetings 2,40,000 2,10,000 2,30,000 6,80,000

Commission 58,077 58,077 58,077 1,74,231

Others, please specify

Total (1) 2,98,077 2,68,077 2,88,077 8,54,231

4. Other Non-Executive Directors Pheroze Charulata

Kharas Patel

Fee for attending board committee meetings 1,40,000 80,000 2,20,000

Commission 58,077 58,077 1,16,154

Others, please specify

Total (2) 1,98,077 1,38,077 3,36,154

Total (B)=(1+2) 11,90,385

Total Managerial Remuneration 2,90,385

Overall Ceiling as per the Act 2,90,385

Sr.No. Particulars of Remuneration


31

C. REMUNERATION TO KEY MANAGERIAL PERSONNEL OTHER THAN MD/MANAGER/WTD

Sr.No. Particulars of Remuneration Key Managerial Personnel

Company SecretaryAntony. P. Alapat

CFOMahadev D. Desai Total

1. Gross salary

(a) Salary as per provisions contained in

section 17(1) of the Income-tax Act,1961 5,07,335 28,18,807 33,26,142

(b) Value of perquisites u/s

17(2) Income-tax Act,1961 Nil 2,32,844 2,32,844

(c) Profits in lieu of salary under section 17

(3) Income-tax Act, 1961 Nil Nil Nil

2. Stock Option Nil Nil Nil

3. Sweat Equity Nil Nil Nil

4. Commission as % of profit - others, specify... Nil Nil Nil

5. Others, please Specify Nil Nil Nil

Total 5,07,335 30,51,651 35,58,986

VII. PENALTIES / PUNISHMENT/ COMPOUNDING OF OFFENCES:

Type

Section of

the

Companie

Act

Brief

Description

Details of

Penalty /

Punishment/

Compounding fees

imposed

Authority

[RD / NCLT /

COURT]

Appea

lmade, if

any

(give

Details)

A. COMPANY

Penalty None

Punishment None

Compounding None

B. DIRECTORS

Penalty None

Punishment None

Compounding None

C. OTHER OFFICERS IN DEFAULT

Penalty None

Punishment None

Compounding None

Ecoplast Limited

32

ANNEXURE -III

FORM No. MR-3

SECRETARIAL AUDIT REPORT

FOR THE FINANCIAL YEAR ENDED 31ST MARCH, 2018

(Pursuant to Section 204 (1) of the Companies Act, 2013 and

rule No. 9 of the Companies (Appointment and Remuneration

of Managerial Personnel) Rules, 2014)

To,

The Members,

Ecoplast Limited

We have conducted the secretarial audit of the compliance of

applicable statutory provisions and the adherence to good

corporate practices by Ecoplast Limited (hereinafter called

the Company). Secretarial Audit was conducted in a manner

that provided us a reasonable basis for evaluating the

corporate conducts/statutory compliances and expressing

our opinion thereon.

Based on our verification of the Company's books, papers,

minute books, forms and returns filed and other records

maintained by the Company, the information provided by the

Company, its officers, agents and authorised representatives

during the conduct of secretarial audit, the explanations and

clarifications given to us and the representations made by the

Management, we hereby report that in our opinion, the

Company has, during the audit period covering the financial

year ended on 31st March, 2018 generally complied with the

statutory provisions listed hereunder and also that the

Company has proper Board processes and compliance

mechanism in place to the extent, in the manner and subject to

the reporting made hereinafter:

We have examined the books, papers, minute books, forms

and returns filed and other records made available to us and

maintained by the Company for the financial year ended on

31st March, 2018 according to the provisions of:

(i) The Companies Act, 2013 (the Act) and the rules made

there under;

(ii) The Securities Contract (Regulation) Act, 1956 ('SCRA')

and the rules made there under;

(iii) The Depositories Act, 1996 and the Regulations and Bye-

laws framed there under;

(iv) Foreign Exchange Management Act, 1999 and the rules

and regulations made there under to the extent of Foreign

Direct Investment, Overseas Direct Investment and

External Commercial Borrowings;

(v) The following Regulations and Guidelines prescribed

under the Securities and Exchange Board of India Act,

1992 ('SEBI Act')

(a) The Securities and Exchange Board of India (Substantial

Acquisition of Shares and Takeovers) Regulations, 2011;

(b) Securities and Exchange Board of India (Prohibition of

Insider Trading) Regulations, 2015;

(c) The Securities and Exchange Board of India (Issue of

Capital and Disclosure Requirements) Regulations, 2009

(Not applicable to the Company during the audit period)

(d) The Securities and Exchange Board of India (Employee

Stock Option Scheme and Employee Stock Purchase

Scheme) Guidelines, 1999 and The Securities and

Exchange Board of India ( Share Based Employee

Benefits) Regulations, 2014;(Not applicable to the

Company during the audit period)

(e) The Securities and Exchange Board of India (Issue and

Listing of Debt Securities) Regulations,2008;(Not

applicable to the Company during the audit period)

(f) The Securities and Exchange Board of India (Registrars

to an Issue and Share Transfer Agents)Regulations, 1993

regarding the Companies Act and dealing with client; (Not

applicable to the Company during the audit period)


33

(g) The Securities and Exchange Board of India (Delisting of

Equity Shares) Regulations, 2009; (Not applicable to the

Company during the audit period)and

(h) The Securities and Exchange Board of India (Buyback of

Securities) Regulations, 1998; (Not applicable to the

Company during the audit period)

(vi) Other laws specifically applicable to the Company namely

(a) The Air (Prevention & Control of Pollution) Act, 1981

(b) Hazardous Waste (Management and Handling) Rules,

1989

(c) Plastic Waste Management Rules, 2017

We have also examined compliance with the applicable

clauses of the following:

(i) Secretarial Standards issued by The Institute of Company

Secretaries of India with respect to board and general

meetings.

(ii) The Listing Agreement entered into by the Company with

BSE Limited read with the SEBI (Listing Obligations and

Disclosure Requirements) Regulations, 2015.

During the period under review, the Company has complied

with the provisions of the Act, Rules, Regulations, Guidelines,

standards etc. mentioned above.

We further report that:

The Board of Directors of the Company is duly constituted with

proper balance of Executive Directors, Non-Executive

Directors and Independent Directors. No changes in the

composition of the Board of Directors that took place during

the period under review.

Adequate notice was given to all directors to schedule the

Board Meetings, agenda and detailed notes on agenda were

sent at least seven days in advance, and a system exists for

seeking and obtaining further information and clarifications on

the agenda items before the meeting and for meaningful

participation at the meeting.

Decisions at the Board Meetings were taken unanimously.

We further report that there are adequate systems and

processes in the Company commensurate with the size and

operations of the Company to monitor and ensure compliance

with applicable laws, rules, regulations and guidelines.

We further report that during the audit period no events

occurred which had bearing on the Company's affairs in

pursuance of the above referred laws, rules, regulations,

guidelines etc.

For Parikh & Associates

Company Secretaries

Place: Mumbai

Date: 28.05.2018

Signature:

Mitesh Dhabliwala

Partner

FCS No: 8331 CP No: 9511

This Report is to be read with our letter of even date which is

annexed as Annexure A and Forms an integral part of this

report.

Ecoplast Limited

34

‘Annexure A’

To,

The Members

Ecoplast Limited

Our report of even date is to be read along with this letter.

1. Maintenance of Secretarial record is the responsibility of the management of the Company. Our responsibility is to express an

opinion on these secretarial records based on our audit.

2. We have followed the audit practices and process as were appropriate to obtain reasonable assurance about the correctness

of the contents of the Secretarial records. The verification was done on test basis to ensure that correct facts are reflected in

Secretarial records. We believe that the process and practices, we followed provide a reasonable basis for our opinion.

3. We have not verified the correctness and appropriateness of financial records and Books of Accounts of the Company.

4. Where ever required, we have obtained the Management representation about the Compliance of laws, rules and regulations

and happening of events etc.

5. The Compliance of the provisions of Corporate and other applicable laws, rules, regulations, standards is the responsibility of

management. Our examination was limited to the verification of procedure on test basis.

6. The Secretarial Audit report is neither an assurance as to the future viability of the Company nor of the efficacy or effectiveness

with which the management has conducted the affairs of the Company.

For Parikh & Associates

Company Secretaries

Place: Mumbai

Date: 28.05.2018

Signature:

Mitesh Dhabliwala

Partner

FCS No: 8331 CP No: 9511


35

ANNEXURE -IV

CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION,

FOREIGN EXCHANGE EARNINGS AND OUTGO

A. CONSERVATION OF ENERGY

i. Steps taken / impact on conservation of energy Energy conservation continues to receive priority

ii. Steps taken by the company for utilizing alternate attention at all levels. All efforts are made to conserve

sources of energy including waste generated: and optimize use of energy with continuous monitoring,

iii. Capital investment on energy conservation improvement in maintenance and distribution

equipment: systems and through improved operational techniques.

B. TECHNOLOGY ABSORPTION

i. Efforts, in brief, made towards technology absorption The Company continues to use latest technologies for

ii. Benefits derived as a result of the above efforts, improving the productivity & quality of its products.

e.g., product improvement, cost reduction, product

development, import substitution, etc.:

iii.In case of imported technology (imported during the last 3 years reckoned from the beginning of the

financial year), following information may be furnished:

a) Details of technology imported.: The Company has not imported any technology

b) Year of import.: Not Applicable

c) Whether the technology been fully absorbed: Not Applicable

d) If not fully absorbed, areas where absorption has not taken place, and the reasons therefore.: Not Applicable

iv. Expenditure incurred on Research and Development

( in Rs. 000's )

31.03.18 31.03.17

a) Capital Expenditure --- ---

b) Recurring Expenditure 20,99,800 12,55,558

c) Total Expenditure 20,99,800 12,55,558

d) Total R & D Expenditure as a percentage of total turnover. 0.21 0.13

C. FOREIGN EXCHANGE EARNINGS AND OUTGO 31.03.18

a) Foreign Exchange Earnings : Rs.8,51,47,509/-

b) Foreign Exchange Outgo : Rs.37,83,85,174/-

Ecoplast Limited

36

ANNEXURE -V

FORM NO. AOC 2

Related Party Transactions disclosure

Form for disclosure of particulars of contracts/arrangements entered into by the company with related parties referred to in sub-

section (1) of section 188 of the Companies Act, 2013 including certain arms length transactions under third proviso thereto

(Pursuant to clause (h) of sub-section (3)of section 134 of the Act and Rule 8(2) of the Companies (Accounts) Rules, 2017)

1. Details of contracts or arrangements or transactions not at arm's length basis:

The Company has not entered into contracts or arrangements or transactions with Related Party which are not at arm's

length basis hence not required to make any disclosure under this heading.

2. Details of material contracts or arrangement or transactions at arm's length basis:

The Company has not entered into any material contract or material arrangement or material transactions with related

party on arm's length basis. Hence not required to make any disclosure under this heading.

For and on behalf of the Board of Directors

Mukul B. Desai

CHAIRMAN

DIN:00015126



37

ANNEXURE -VI

PARTICULARS OF EMPLOYEES

TManagerial Personnel) Rules, 2017 is given hereunder.

1. The ratio of the remuneration of each director to the median remuneration of the employees of the company for the financial year;

he information as required under Section 197 of the Act read with rule 5(1) of the Companies (Appointment and Remuneration of

Sr. No. Name of Director/KMP Ratio to Remuneration of Median Remuneration

i. Jaymin B.Desai 34.52

ii. Pheroze P. Kharas 0.83

iii. Charulata N. Patel 0.58

iv. Jehangir A. Moos 1.12

v. Dhananjay T. Desai 0

vi. Mukul B. Desai 1.24

vii. Bhupendra M. Desai 1.20

2. The percentage increase in remuneration of each director, Chief Financial Officer, Chief Executive Officer, Company Secretary or Manager, if any, in the financial year;

Sr. No. Name of Director/KMP

i. Jaymin B.Desai 21.76%

ii. Pheroze P. Kharas -8.89%

iii. Charulata N. Patel -22.17%

iv. Jehangir A. Moos 4.15%

v. Dhananjay T. Desai 0*

vi. Mukul B. Desai 15.80%

vii. Bhupendra M. Desai 45.93%

viii. Mahadev D.Desai-CFO 7.95%

ix. Antony P.Alapat-CS 10.38%

Percentage Increase in Remuneration

Note: Mr. Dhananjay T. Desai, Director had waived his right to receive any kind of remuneration, as precondition for his

appointment as the member of Board of Director and its Committees.

3. The percentage increase in the median remuneration of employees in the financial year; 2.5%

4. the number of permanent employees on the rolls of company; 100

5. the explanation on the relationship between average increase in remuneration and company performance:

The Companies Average Remuneration increased by 2.25 % as compared to previous financial year and Companies profit before

tax has been increased by 43.79%. Considering the above average performance achieved by the Company the average increase

in remuneration is justified.

6. Comparison of the remuneration of the Key Managerial Personnel against the performance of the company;

Total Remuneration of KMP 1,18,39,382

Turnover 99,04,97,480

Remuneration of KMP as of Turnover 1.20%

Ecoplast Limited

38

7. Variations in the market capitalisation of the company, price earnings ratio as at the closing date of the current financial year and

previous financial year and percentage increase over decrease in the market quotations of the shares of the company in

comparison to the rate at which the company came out with the last public offer in case of listed companies:

MarketCapitalisation

PriceEarnings Ratio

Change in market quotationsof the shares as Compared

to last Public offer

Closing date of the previous Financial year Rs. 26.86 Crores 14.56 +124 %

Closing date of the current Financial year Rs.40.59 Crores 14.37 +238.24%

8. Average percentile increase already made in the salaries of employees other than the managerial personnel in the last financial

year and its comparison with the percentile increase in the managerial remuneration and justification thereof and point out if

there are any exceptional circumstances for increase in the managerial remuneration:

Average Increase in Salaries excluding Managerial Remuneration 5.74

Average Increase in Managerial Remuneration 21.76

9. Comparison of the each remuneration of the Key Managerial Personnel against the performance of the company:

Remuneration 82,80,396 30,51,651 5,07,335

Turnover 99,04,97,480

Remuneration as % of Turnover 0.84 0.31 0.05

Mr. Antony AlapatCompany Secretary

Mr. Jaymin DesaiManaging Director

Mr. Mahadev DesaiCFO

10. The key parameters for any variable component of remuneration availed by the directors:

The Non Executive Directors of the Company are entitled to 1 % commission on the Net Profits of the Company calculated as per section 198 of the Companies Act 2013.

11. The ratio of the remuneration of the highest paid director to that of the employees who are not directors but receive remuneration in excess of the highest paid director during the year:

The Company doesn't have any employee who is receiving remuneration in excess of highest paid director.

12. Affirmation that the remuneration is as per the remuneration policy of the company:

The Directors hereby confirm that the Company is paying remuneration to Directors & Employees as per the remuneration policy of the Company.

13. Statement showing details of employees of the company who is drawing remuneration more than Rs.60, Lakhs Per Annum or Rs.5 Lakhs per Month.

(i) Name of the employee: Mr. Jaymin B. Desai

(ii) designation of the employee; Managing Director

(iii) remuneration received; Rs. 82,80,396

(iv) nature of employment, whether contractual or otherwise; Contractual

(v) qualifications ; B.E (Chemical)

(vi) experience of the employee; Over 33 years

(vii) date of commencement of employment;1985

(viii)the age of such employee; 56 years

(ix) the last employment held by such employee before joining the company; Not Applicable

(x) the percentage of equity shares held by the employee in the company within the meaning of clause (iii) of sub-rule (2) above;28

(xi) whether any such employee is a relative of any director or manager of the company and if so, name of such director or manager: No


39

ANNEXURE -VII

DETAILS OF DIRECTORS REMUNERATION

I. Remuneration of Managing Director:

a) SALARY: Rs. 5,00,000/- per month with such increments,

effective 1st October every year, as may be decided by the

Board of Directors of the Company within the scale of

Rs.5,00,000/- to Rs.8,00,000/- per month during the

tenure of his appointment.

b) Perquisites: In addition to the aforesaid salary, The

Managing Director shall be entitled to the following

perquisites:

i) Medical Allowance of Rs.20,800 per month.

ii) Reimbursement of Medical Insurance premium not

exceeding Rs. 25,000/- per annum.

iii) Personal Accident Insurance policy to cover the risk up

to an annual premium not exceeding a sum of Rs.

10,000/-

iv) Reimbursement of Leave Travel expenses as per rules

of the Company for self and family not exceeding Rs

1,50,000/- per annum

The above perquisites shall be evaluated as per the

Income tax Rules wherever applicable. In the absence of

such rules, perquisites will be evaluated at actual costs.

Notwithstanding anything to the contrary here in

contained, where, in any financial year during the currency

of the tenure of Mr. J B Desai as the Managing Director, the

Company has made no profits or its profits are inadequate,

the Company shall pay to the Managing Director, the

above Salary and perquisites, as Minimum Remuneration.

c) The Managing Director shall also be entitled to the

following perquisites which shall not be included in the

computation of the ceiling on remuneration specified

herein above :

i. Contribution to Provident Fund, Superannuation Fund

or Annuity Fund to the extent these either singly or put

together are not taxable under theIncome tax Act, 1961.

ii. Gratuity payable at the rate not exceeding half a month's

Salary for each completed year of service.

iii. Earned privilege leave at the rate of one month's leave

for every eleven months of service. The Managing

Director shall be entitled to encash leave at the end of

his tenure as Managing Director.

iv. Provision for Car including driver's salary and Telephone

at the residence of the Managing Director and mobile

phone for the business of the Company shall not be

treated as perquisites

All income tax and other impositions, if any, in respect of

Mr.Jaymin B. Desai's remuneration shall be calculated by

the Company and deducted in accordance with the

applicable provisions of the Income tax law for the time

being in force.

d) Either party shall be entitled to terminate the Agreement by

giving the other party not less than three calendar months

notice in writing without showing any cause.

e) Depending upon the Increase in profits & turnover of the

Company, The Nomination & Remuneration Committee

shall decide the performance incentives and revision in

remuneration of the Managing Director.

II. Remuneration of Nonexecutive Director:

The Non Executive Directors of the Company are entitled to 1

% commission on the Net Profits of the Company calculated

as per section 198 of the Companies Act 2013.

Ecoplast Limited

40

MANAGEMENT DISCUSSION AND ANALYSIS

1. Industry Outlook

Plastics have played a vital role in transforming the quality of life, and will progressively continue to do so over the years. The per-

capita consumption of plastics in India is at around 11 to 12 kgs, as against 30 to 35 kgs in developed countries.

Normally, the tendency is to judge a product or item in terms of its waste disposal problem. The scientific approach is to make a

comparative study of products or applications, based on measurements of energy input and the pollution discharged to land, water

and air at every stage, from the time that basic raw materials are extracted from the earth to the time a product is produced,

transported, used and disposed; this is called a Life Cycle Analysis (LCA). - or more simply the "cradle to grave approach".

LCA studies conducted the world over (including the Centre for Polymer Science and Engineering, the Indian Institute of

Technology, Delhi) have shown beyond any reasonable doubt, that plastics are the most eco-friendly materials; they have a pivotal

role in reducing green house gas emissions.

Global automobile, foods processing packing and health care companies have established large manufacturing bases in India.

Industry is expected to grow at the rate of 12% per annum in time to come.

Environmental concern for use of plastic and collection of waste material for recycling and reuse is a major concern for the

Industry.

2. Opportunities and Threats:

There are good opportunities in the specialty application film business - mostly industrial applications, with relatively high

technology content and which are generally import substitutes. The risk of backward integration is less in these applications.

Plastics packaging adds value to agricultural produce by increasing its shelf- life and fortifying its nutritive value. The film

performance for each item has to be tailored to meet specific requirements and is technology related.

Over the last three years, the industry has encountered volatility and uncertainty on price movements of Poly Ethylene, exchange

rate volatility. Major policy decisions of the Government like Demonetisation, Protectionist movements in world.

3. Risks and Concern.

While risk is an inherent aspect of any business, the Company is conscious of the need to have an effective monitoring mechanism

and has put in place appropriate measures for its mitigation including business portfolio risk, financial risk, legal risk and internal

process risk.

4. Internal Financial Control Systems:

The Company's internal financial control systems are commensurate with the nature of its business and the size and complexities

of its operations. These systems are designed to ensure that all assets of the Company are safeguarded and protected against any

loss and that all transactions are properly authorized, recorded and reported.

5. Human Resources

It is your Company's belief that people are at the heart of corporate purpose and constitute the primary source of sustainable

competitive advantage. Your Company's belief in trust, transparency and teamwork improved employee productivity at all levels

6. Disclosures

During the year the Company has not entered into any transaction of material nature with its promoters, the directors or the

management, their subsidiaries or relatives etc that may have potential conflict with the interest of the Company at large.

All details of transaction covered under related party transaction are given in the notes to account.

7. Cautionary Statement :

Certain statements made in the Management Discussion and Analysis Report relating to the Company's objectives, projections,

outlook, expectations, estimates and others may constitute 'forward looking statements' within the meaning of applicable laws and

regulations. Actual results may differ from such expectations, projections and so on whether express or implied. Several factors

could make significant difference to the Company's operations. These include climatic conditions and economic conditions

affecting demand and supply, government regulations and taxation, natural calamities and so on over which the Company does

not have any direct control.


41

Independent Auditor's Report

To The Members of

ECOPLAST LIMITED

Report on the Standalone Financial Statements

We have audited the accompanying standalone financial

statements of Ecoplast Limited ('the Company'), which

comprise the Balance Sheet as at 31 March 2018, the

Statement of Profit and Loss (including other comprehensive

income), the Cash Flow Statement and statement of changes

in equity for the year then ended and a summary of the

significant accounting policies and other explanatory

information.

Management's Responsibility for the Standalone

Financial Statements

The Company's Board of Directors is responsible for the

matters stated in Section 134(5) of the Companies Act, 2013

('the Act') with respect to the preparation of these standalone

financial statements that give a true and fair view of the state

of affairs (financial position), profit or loss (financial

performance), cash flowsand changes in equity of the

companyin accordance with the accounting principles

generally accepted in India, including the Indian Accounting

Standards ('Ind AS') specified under Section 133 of the Act.

This responsibility also includes maintenance of adequate

accounting records in accordance with the provisions of the

Act for safeguarding the assets of the Company and for

preventing and detecting frauds and other irregularities;

selection and application of appropriate accounting policies;

making judgments and estimates that are reasonable and

prudent; and design, implementation and maintenance of

adequate internal financial controls, that were operating

effectively for ensuring the accuracy and completeness of the

accounting records, relevant to the preparation and

presentation of the standalone financial statements that give a

true and fair view and are free from material misstatement,

whether due to fraud or error.

Auditors' Responsibility

Our responsibility is to express an opinion on these

standalone financial statements based on our audit.

We have taken into account the provisions of the Act, the

accounting and auditing standards and matters which are

required to be included in the audit report under the provisions

of the Act and the Rules made thereunder.

We conducted our audit in accordance with the Standards on

Auditing specified under Section 143(10) of the Act. Those

Standards require that we comply with ethical requirements

and plan and perform the audit to obtain reasonable

assurance about whether these standalone financial

statements are free from material misstatement.

An audit involves performing procedures to obtain audit

evidence about the amounts and the disclosures in the

financial statements. The procedures selected depend on the

auditor's judgment, including the assessment of the risks of

material misstatement of the financial statements, whether

due to fraud or error. In making those risk assessments, the

auditor considers internal financial controls relevant to the

Company's preparation of the financial statements that give a

true and fair view in order to design audit procedures that are

appropriate in the circumstances. An audit also includes

evaluating the appropriateness of the accounting policies

used and the reasonableness of the accounting estimates

made by the Company's Directors, as well as evaluating the

overall presentation of the financial statements.

We believe that the audit evidence we have obtained is

sufficient and appropriate to provide a basis for our audit

opinion on these standalone financial statements.

Opinion

In our opinion and to the best of our information and according

to the explanations given to us, the aforesaid standalone

financial statements give the information required by the Act in

the manner so required and give a true and fair view in

conformity with the accounting principles generally accepted

in India:

a) in the case of the Balance Sheet, of the state of

affairs(financial position)of the Company as at 31st

March 2018;

b) in the case of the Statement of Profit and Loss, of the

profit(f inancial performance including other

comprehensive income),for the year ended on that

date;

Ecoplast Limited

42

c) in the case of the Cash Flow Statement, of the cash

flows for the year ended on that date, and Changes in

equity for the year ended on that date.

d) Changes in equity for the ended on that date.

Other matters

The audited standalone financial statements for the year

ended 31 March 2017, was carried out and reported by Akkad ndMehta & Co., vide their unmodified audit report dated 22

May, 2017, whose report has been furnished to us by the

management and which has been relied upon by us for the

purpose of our audit of the standalone financial statements.

Our audit report is not qualified in respect of this matter.

Report on other Legal and Regulatory Requirements

1. As required by the Companies (Auditor's Report) Order,

2016 ('the Order') issued by the Central Government of India

in terms of Section 143(11) of the Act, we give in the Annexure

A, a statement on the matters specified in paragraphs 3 and 4

of the Order, to the extent applicable.

2. As required by section 143(3) of the Act, we report that:

a) We have sought and obtained all the information and

explanations which to the best of our knowledge and

belief were necessary for the purposes of our audit.

b) In our opinion proper books of account as required by

law have been kept by the Company so far as appears

from our examination of those books.

c) The Balance Sheet, the Statement of Profit and Loss

and the Cash Flow Statement dealt with by this Report

are in agreement with the books of account

d) In our opinion, the aforesaid Standalone financial

statements comply with Ind AS specified under Section

133 of the Act;

e) On the basis of written representations received from

the directors as on March 31, 2018 taken on record by

the Board of Directors, none of the directors is

disqualified as on March 31, 2018 from being appointed

as a director in terms of Section 164 (2) of the Act.

f) we have also audited the internal financial controls over

financial reporting (IFCoFR) of the Company as on 31

March 2018 in conjunction with our audit of the

standalone financial statements of the Company for the

year ended on that date and our report as per Annexure

B expressed Unmodified opinion;

g) With respect to the other matters included in the

Auditor's Report in accordance with Rule 11 of the

Companies (Audit and Auditors') Rules, 2014 (as

amended), in our opinion and to our best of our

information and according to the explanations given to

us:-

I. The pending litigation as disclosed in notes to the

Standalone Financial Statements would not impact

Financial Position of the Company.

II. The Company did not have any long-term contracts

including derivatives contracts for which there were any

material foreseeable losses.

III. There has been no delay in transferring amounts,

required to be transferred, to the Investor Education

and Protection Fund by the Company.

IV. The disclosure requirements relating to holdings as well

as dealings in specified bank notes were applicable for

the period from 8 November 2016 to 30 December 2016

which are not relevant to these standalone financial

statements. Hence, reporting under this clause is not

applicable.

For Y. B. Desai and Associates


Firm Registration No. 102368W

Name :- CA Mayank Y. Desai

Partner

Membership No. :- 108310

thDate :- 28 May, 2018

Place :- Mumbai.


43

Matters specified in paragraph 3 of Order

1) In respect of its fixed assets:

a) On the basis of available information, the Company has

maintained proper records showing full particulars

including quantitative details and situations of fixed

assets.

b) According to the information and explanation given to

us, the Company has formulated a regular program of

verification by which all the assets of the Company shall

be verified in a phased manner over a period of once in

every three years, which, in our opinion is reasonable

having regard to the size of the Company and nature of

assets and no material discrepancies were noticed on

verification conducted during the year as compared

with the book records.

c) According to the information and explanation given to

us and on the basis of our examination of the record of

the company, the title deeds of the immovable

properties are held in the name of the company.

2) In respect of its inventories:

a) The inventories, except goods-in-transit have been

physically verified during the year by the management.

In our opinion, the frequency of verification is

reasonable. As per the information and explanation

given to us, no material discrepancies were noticed on

physical verification.

3) The Company has not granted loans, secured or

unsecured, to companies, firms, and limited liability

partnerships or other parties listed in the register

maintained U/s 189 of the Companies Act, 2013.

Therefore, the provisions of sub clause 3(a), 3(b) & 3(c) are

not applicable to the company.

4) According to the information and explanations given to us,

the Company has not given any loan, security or guarantee

to directors of any other body corporate as referred to in

section 185 and 186 of the Companies Act, 2013.

However, the Company had granted Loans to wholly

owned subsidiary company under the erstwhile provision

of Section 372A of the Companies Act, 2013. As per Rule

11 of the Companies (Meeting of Board and its power)

Rules, 2014, Loans, Investments and guarantees given to

wholly owned subsidiary is exempted from complying the

provision of Section 186(3) of the Act.

5) The Company has not accepted any deposits from the

public and hence the directives issued by the Reserve

Bank of India and the provisions of Sections 73 to 76 or any

other relevant provisions of the Act and the Companies

(Acceptance of Deposit) Rules, 2015 with regard to the

deposits accepted from the public are not applicable.

6) We have broadly reviewed the books of account

maintained by the Company in respect of products where,

pursuant to the Rules made by the Central Government of

India, the maintenance of cost records has been

prescribed under subsection (1) of Section 148 of the Act,

and are of the opinion that prima facie, the prescribed

accounts and records have been made and maintained.

We have not, however, made a detailed examination of the

records with a view to determine whether they are accurate

or complete.

7) In respect of statutory dues:

a) According to the records of the Company, undisputed

statutory dues including Provident Fund, Employees'

State Insurance, Income Tax, Sales Tax, Wealth Tax,

Service Tax, duty of Customs, Duty of Excise, Value

Added Tax, Cess and other material statutory dues

have been generally regularly deposited with the

appropriate authorities. According to the information

and explanations given to us, no undisputed amounts

payable in respect of the aforesaid dues were

outstanding as at 31st March 2018 for a period of more

than six months from the date of becoming payable.

b) According to the information and explanation given to

us, there are no dues of income tax, sales tax, wealth

tax, service tax, custom duty, excise duty and Cess

which have not been deposited on account of dispute.

However, according to information and explanation

given to us dues of Service Tax have not been deposited

by the Company on account of disputes are as follows :-

Annexure -A to the Auditors' ReportReferred to in paragraph 1 of our Report of even date:

Ecoplast Limited

44

Nature of the dues Amount in (Rs.) F. Y. to which theamount relates

Forum wheredispute is pending

Name of the Statute

Finance Act, 1994Superintendent,C.Ex. Valsad

Service Tax CreditOn The Service OfCustom Housing Agent

F.Y.2010-11

Superintendent,C.Ex.ValsadF.Y.2012-13



F.Y.2014-15

TOTAL





Superintendent,C.Ex.Valsad

F.Y.2015-16



F.Y.2015-16Service Tax CreditOn The Service OfCustom Housing Agent


F.Y.2010-11to F.Y.2013-14

Cenvat Credit OfService Tax Paid ToCommission Agent

DeputyCommissioner,C.Ex. Valsad

F.Y.2014-15Cenvat Credit OfService Tax Paid ToCommission Agent


F.Y.2015-16Cenvat Credit OfService Tax Paid ToCommission Agent


3,17,688.00

51,560.00

74,376.00

31,164.00

55,725.00

7,58,857.00

67,507.00

71,358.00

54,075.00

12,400.00

16,769.00

6,235.00 F.Y.2016-17Cenvat Credit OfService Tax Paid ToCommission Agent


Finance Act, 1994

Finance Act, 1994

Finance Act, 1994

Finance Act, 1994

Finance Act, 1994

Finance Act, 1994

Finance Act, 1994

Finance Act, 1994

Finance Act, 1994

Finance Act, 1994


45

8) In our opinion and according to the information and

explanations given to us, the Company has not defaulted in

the repayment of dues to banks. The Company has not taken

any loan either from financial institutions or from the

government and has not issued any debentures.

9) The company has not raised any funds by public offer

during the year. The company has also not raised any term

loan during the year, therefore, this clause is not applicable.

10) In our opinion and according to the information and

explanations given to us, no fraud by the Company and no

material fraud on the Company has been noticed or reported

during the year.

11) According to the information and explanation give to us

and based on our examination of the records of the Company,

the Managerial remuneration has been paid and provided by

the Company in accordance with the requisite approvals

mandated by the provisions of Section 197 of the Act read with

Schedule V to the Act.

12) In our opinion, the Company is not a Nidhi Company.

Therefore, the provisions of clause 12 of the Order are not

applicable to the Company.

13) According to the information and explanation given to

us and based on our examination of the records the company,

transaction with the related parties are in compliance with

Section 177 and 188 of the Companies Act, 2013 where

applicable and details of such transaction have been

disclosed in the Note No. 31 of financial statement as required

by the applicable accounting standards.

14) Based upon the audit procedures performed and the

information and explanations given by the management, the

company has not made any preferential allotment or private

placement of shares or fully or partly convertible debentures

during the year under review. Accordingly, the provisions of

clause 14 of the Order are not applicable to the Company and

hence not commented upon.

15) Based upon the audit procedures performed and the

information and explanations given by the management, the

company has not entered into any non-cash transactions with

directors or persons connected with him. Accordingly, the

provisions of clause 15 of the Order are not applicable to the

Company and hence not commented upon.

16) In our opinion, the company is not required to be

registered under section 45 IA of the Reserve Bank of India

Act, 1934 and accordingly, the provisions of clause 16 of the

Order are not applicable to the Company and hence not

commented upon.

Matters specified in paragraph 4 of Order

…Nil…





Partner



Place :- Mumbai

Ecoplast Limited

46

Annexure - B to the Independent Auditors' Report of even date to the members ofEcoplast Limited, on the standalone financial statements for the year ended 31 March 2018

on Auditing, issued by ICAI and deemed to be prescribed

under section 143(10) of the Companies Act, 2013, to the

extent applicable to an audit of internal financial controls, both

applicable to an audit of Internal Financial Controls and, both

issued by the Institute of Chartered Accountants of India.

Those Standards and the Guidance Note require that we

comply with ethical requirements and plan and perform the

audit to obtain reasonable assurance about whether

adequate internal financial controls over financial reporting

was established and maintained and if such controls operated

effectively in all material respects.

Our audit involves performing procedures to obtain audit

evidence about the adequacy of the internal financial controls

system over financial reporting and their operating

effectiveness. Our audit of internal financial controls over

financial reporting included obtaining an understanding of

internal financial controls over financial reporting, assessing

the risk that a material weakness exists, and testing and

evaluating the design and operating effectiveness of internal

control based on the assessed risk. The procedures selected

depend on the auditor's judgment, including the assessment

of the risks of material misstatement of the financial

statements, whether due to fraud or error.

We believe that the audit evidence we have obtained is


opinion on the Company's internal financial controls system

over financial reporting.

Meaning of Internal Financial Controls over Financial

Reporting

A company's internal financial control over financial reporting

is a process designed to provide reasonable assurance

regarding the reliability of financial reporting and the

Independent Auditor's report on the Internal Financial

Controls under Clause (i) of sub-section 3 of Section 143

of the Companies Act, 2013 (the “Act”)

We have audited the internal financial controls over financial

reporting of ECOPLAST LIMITED (“the Company”) as of 31st

March 2018 in conjunction with our audit of the financial

statements of the Company for the year ended on that date.

Management's Responsibility for the Internal Financial

Controls

The Company's management is responsible for establishing

and maintaining internal financial controls based on the

internal control over financial reporting criteria established by

the Company considering the essential components of

internal control stated in the Guidance Note on Audit of

Internal Financial Controls over Financial Reporting issued by

the Institute of Chartered Accountants of India ('ICAI'). These

responsibilities include the design, implementation and

maintenance of adequate internal financial controls that were

operating effectively for ensuring the orderly and efficient

conduct of its business, including adherence to company's

policies, the safeguarding of its assets, the prevention and

detection of frauds and errors, the accuracy and

completeness of the accounting records, and the timely

preparation of reliable financial information, as required under

the Companies Act, 2013.


Our responsibility is to express an opinion on the Company's

internal financial controls over financial reporting based on

our audit. We conducted our audit in accordance with the

Guidance Note on Audit of Internal Financial Controls over

Financial Reporting (the “Guidance Note”) and the Standards


47

preparation of financial statements for external purposes in

accordance with generally accepted accounting principles. A

company's internal financial control over financial reporting

includes those policies and procedures that (1) pertain to the

maintenance of records that, in reasonable detail, accurately

and fairly reflect the transactions and dispositions of the

assets of the company; (2) provide reasonable assurance that

transactions are recorded as necessary to permit preparation

of financial statements in accordance with generally accepted

accounting principles, and that receipts and expenditures of

the company are being made only in accordance with

authorisations of management and directors of the company;

and (3) provide reasonable assurance regarding prevention

or timely detection of unauthorised acquisition, use, or

disposition of the company's assets that could have a material

effect on the financial statements.

Inherent Limitations of Internal Financial Controls Over

Financial Reporting

Because of the inherent limitations of internal financial

controls over financial reporting, including the possibility of

collusion or improper management override of controls,

material misstatements due to error or fraud may occur and

not be detected. Also, projections of any evaluation of the

internal financial controls over financial reporting to future

periods are subject to the risk that the internal financial control

over financial reporting may become inadequate because of

changes in conditions, or that the degree of compliance with

the policies or procedures may deteriorate.

Opinion

In our opinion, the Company has, in all material respects, an

adequate internal financial controls system over financial

reporting and such internal financial controls over financial

reporting were operating effectively as at 31st March 2018

based on the internal control over financial reporting criteria

established by the Company considering the essential

components of internal control stated in the Guidance Note on

Audit of Internal Financial Controls Over Financial Reporting






Partner



Place :- Mumbai

Ecoplast Limited

48

BALANCE SHEET AS AT 31ST MARCH, 2018

Note No As at 31.03.2017 As at 01.04.2016As at 31.03.2018

ASSETSNON CURRENT ASSETS(a) Property, Plant and Equipment 2 12,38,68,753 12,66,35,192 10,47,76,758(b) Capital work-in-progress 2 - 38,47,366 6,40,959(c) Investment in Subsidiaries 3 2,30,25,048 2,29,23,422 2,28,21,998(d) Financial Assets (i) Loans 4 3,41,30,390 3,31,83,771 2,80,71,898(e) Other non-current assets 5 85,22,939 37,82,439 50,92,414

Total non-current assets 18,95,47,130 19,03,72,190 16,14,04,027CURRENT ASSETS(a) Inventories 6 11,33,98,439 10,32,94,892 8,55,29,089(b) Financial Assets

(i) Trade Receivables 7.1 16,59,10,607 19,25,31,233 16,81,62,546(ii) Cash and cash equivalents 7.2 15,31,176 11,69,915 10,75,681(iii) Bank balances other than (ii) above 7.3 27,13,904 32,96,658 28,19,086(iv) Loans 7.4 18,45,970 10,39,462 9,11,877(v) Other financial assets 7.5 8,50,242 19,40,918 13,36,643

(c) Other current assets 8 48,13,390 84,32,135 55,65,148Total current assets 29,10,63,728 31,17,05,213 26,54,00,070TOTAL ASSETS 48,06,10,858 50,20,77,403 42,68,04,097

EQUITY AND LIABILITIESEquity(a) Equity Share capital 9 3,00,00,000 3,00,00,000 3,00,00,000(b) Other Equity 10 23,70,96,439 21,13,45,206 19,01,54,424

Total equity 26,70,96,439 24,13,45,206 22,01,54,424LiabilitiesNon-current liabilities(a) Financial Liabilities (i) Borrowings 11 1,87,06,045 3,05,72,815 2,23,61,018(b) Provisions 12 47,82,952 43,00,200 34,75,187(c) Deferred tax liabilities (Net) 13 94,45,684 90,58,442 79,87,152

Total non current liabilities 3,29,34,681 4,39,31,457 3,38,23,357Current liabilities(a) Financial Liabilities

(i) Borrowings 14.1 7,41,16,945 9,82,66,575 7,25,54,762(ii) Trade payables 14.2 8,51,47,897 9,50,20,550 8,24,12,848(iii) Other financial liabilities 14.3 1,29,13,683 1,28,92,976 90,33,548

(b) Other current liabilities 15 49,30,328 60,47,441 51,36,578(c) Provisions 16 34,70,885 45,73,198 36,88,580

Total current liabilities 18,05,79,738 21,68,00,740 17,28,26,316TOTAL EQUITY AND LIABILITIES 48,06,10,858 50,20,77,403 42,68,04,097

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


JAYMIN B.DESAIPartner Chairman Managing Director

M. D. DESAIC.F.O.

For Y.B.Desai & Associates

Firm ICAI Registration No. 102368W

MAYANK Y. DESAI MUKUL DESAI

Membership No : 108310ANTONY ALAPATCompany Secretary

Place: Mumbai Place : MumbaiDate : 28th May,2018 Date : 28th May,2018

The accompanying notes from 1 to 39 are an integral part of the financial statements


49

STATEMENT OF PROFIT AND LOSS FOR THE YEAR ENDED 31ST MARCH, 2018

Particulars Note No 31.03.2018 31.03.2017

I Revenue from Operations 17 99,04,97,480 1,06,91,91,166

II Other Income 18 1,61,43,679 1,03,51,957

III TOTAL INCOME (I+II) 1,00,66,41,159 1,07,95,43,123

IV Expenses

Cost of materials consumed 19 70,43,43,235 72,41,38,529

Changes in inventories of finished goods, 20 (60,38,514) (24,70,839)

stock in trade and work-in-progress

Excise Duty 21 3,11,49,764 10,77,85,516

Employee benefits expense 22 7,26,40,296 6,63,07,408

Finance costs 23 1,53,87,047 1,85,15,994

Depreciation and amortization expense 2 1,82,10,873 1,78,57,267

Other expenses 24 12,39,80,355 11,47,44,456

TOTAL EXPENSES (IV) 95,96,73,056 1,04,68,78,331

V Profit/(loss) before tax (III-IV) 4,69,68,103 3,26,64,792

VI Tax expense:

(1) Current tax 1,67,57,000 89,33,000

(2) Deferred tax 4,73,288 6,05,456

(3) Tax in respect of Earlier Years - 60,791

1,72,30,288 95,99,247

VII Profit for the year (V-VI) 2,97,37,815 2,30,65,545

VIIIOther Comprehensive Income

(i) Items that will not be reclassified to profit or loss

- Remeasurement of Defined benefit plans 2,60,248 (14,08,930)

(ii) Income tax relating to items that will

not be reclassified to profit or loss

- Remeasurement of Defined benefit plans 86,046 (4,65,835)

IX Total comprehensive income for the year (VII+VIII) 3,00,84,109 2,11,90,780

X Earnings per equity share:

Basic and Diluted 9.91 7.69




M. D. DESAIC.F.O.







Ecoplast Limited

50

CASH FLOW STATEMENT FOR THE YEAR ENDED 31ST MARCH, 2018

Particulars For the year ended 31 Mar,2018 For the year ended 31 Mar,2017

A. Cash flow from operating activities

Net Profit before Tax as per Statement of Profit and Loss

Adjustments for:

Depreciation and amortization and impairment 1,82,10,873 1,78,57,267

(Profit) / loss on sale / write off of assets (net) (66,733) (1,20,187)

Finance costs 1,52,85,421 1,85,15,994

Interest income (34,59,629) (33,21,831)

Other Comprehensive Income 2,60,248 (14,08,930)

Liabilities / provisions no longer required written back (2,49,140) (1,13,191)

2,99,81,040 3,14,09,122

Operating profit before working capital changes 7,69,49,143 6,40,73,914

Changes in working capital:

Adjustments for (increase)/decrease in operating assets:

Inventories (1,01,03,547) (1,77,65,803)

Trade receivables 2,66,20,626 (2,43,68,687)

Short-term loans and advances (8,06,508) (1,27,585)

Long-term loans and advances (4,18,474) (25,73,018)

Other current financial assets 10,90,676 (6,04,275)

Other non current assets (47,40,499) 13,09,975

Other current assets 36,18,745 (28,66,987)

Adjustments for increase/(decrease) in operating liabilities:

Trade payables (96,23,513) 1,27,20,893

Other current liabilities (11,17,113) 9,10,862

Other current financial liabilities 20,706 38,59,428

Short-term provisions (11,02,313) 8,84,618

Long-term provisions 4,82,752 8,25,013

39,21,538 (2,77,95,565)

8,08,70,681 3,62,78,349

Cash generated from operations 8,08,70,681 3,62,78,349

Net income tax (paid) / refunds (1,67,57,000) (89,93,791)

Net cash flow from/(used in)operating activities(A) 6,41,13,681 2,72,84,558

B. Cash flow from investing activities

Payment for property, plant and equipment,

including capital advances (1,17,80,333) (4,29,31,452)

Proceeds from sale of fixed assets 2,50,000 1,29,531

Investments made (1,01,424)

Loans given

- Subsidiaries (5,28,146) (25,38,855)

Interest received

- Subsidiaries 26,46,917 25,38,855

- Others 8,12,712 7,82,976

(85,98,851) (4,21,20,369)

(85,98,851) (4,21,20,369)

Net cash flow from/(used in) investing activities(B) (85,98,851) (4,21,20,369)

4,69,68,103 3,26,64,792


51




M. D. DESAIC.F.O.







CASH FLOW STATEMENT FOR THE YEAR ENDED 31ST MARCH, 2018


C. Cash flow from financing activities

Proceeds / (Repayment) of long-term borrowings (1,18,66,771) 82,11,797

Net increase / (decrease) in Short term borrowings (2,41,49,630) 2,57,11,813

Finance cost (1,53,87,047) (1,85,15,994)

Dividends paid (36,00,000) -

Tax on dividend (7,32,875) -

(5,57,36,324) 1,54,07,617

Net cash flow from/(used in) financing activities(C) (5,57,36,323) 1,54,07,617

Net increase/(decrease) in Cash and cash equivalents(A+B+C) (2,21,493) 5,71,806

Cash and cash equivalents at the beginning ofthe year

Balances with banks in current accounts,

earmarked balances and deposit accounts 32,96,658 28,19,086

Cash on hand 11,69,915 10,75,681

Cash and cash equivalents at the end of the year 42,45,080 44,66,573

Cash and cash equivalents at the end of the year Comprises :

(a) Cash on hand 5,80,264 3,39,476

(b) Balances with banks in current accounts and deposit accounts 9,50,912 8,30,439

(c) Balances with banks in earmarked balances

and deposit accounts 27,13,904 32,96,658

CASH AND CASH EQUIVALENTS. 42,45,080 44,66,573

Notes:

1) The above Cash Flow Statement has been prepared under the "Indirect Method " as set out in Indian Accounting Standard (Ind AS - 7) on statement of Cash Flow.

2 The previous year's figures have been regrouped/ restated wherever necessary to confirm to this year's classification.

3 Earmarked account balances with banks can be utilized only for the specific identified purposes.

Ecoplast Limited

52

Notes to Financial Statements for the year ended 31st March 2018

Corporate Information

Ecoplast Limited is Public Company domiciled in India and incorporated under the provisions of the Companies Act, 1956 having

Corporate Identity Number L25200GJ1981PLC004375. Its shares are listed on Bombay Stock Exchange in India. The Company

is engaged in the business of manufacturing, processing and selling of Co-extruded Plastic Film for packaging and industrial

applications. The principal place of business of the company is at Abrama-Valsad. The Company caters to both domestic and

international markets. It has various certifications like ISO 9001, ISO 14001 and ISO 22000 registration for products thereby

complying with globally accepted quality standards.

1. Statement of Significant Accounting Policies

Basis of Preparation:

The Financial Statements are prepared in accordance with Indian Accounting Standards (Ind AS) notified under Section 133 of

the Companies Act, 2013 (“Act”) read with Companies (Indian Accounting Standards) Rules, 2015; and the other relevant

provisions of the Act and Rules thereunder.

The Financial Statements have been prepared under historical cost convention basis, except for certain assets and liabilities

measured at fair value.

The Company has adopted all the Ind AS and the adoption was carried out in accordance with Ind AS 101 ‘First time adoption of

Indian Accounting Standards’. The transition was carried out from Generally Accepted Accounting Principles in India (Indian

GAAP) as prescribed under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014, as amended

which was the “Previous GAAP”.

The Company’s presentation and functional currency is Indian Rupees (Rs.). All figures appearing the financial statements are

rounded off to the Rupee, except where otherwise indicated.

1.1. Use of Judgment and Estimates:

The preparation of Company’s financial statements requires management to make judgments, estimates and assumptions that

affect the reported amounts of revenue, expenses, assets, liabilities and the accompanying disclosures along with contingent

liabilities. Uncertainty about these assumptions and estimates could result in outcomes that require material adjustments to the

carrying amounts of the assets or liabilities affected in future periods. The Company continually evaluates these estimates and

assumptions based on the most recently available information.

Æ Financial instruments;

Æ Estimates of useful lives and residual value of Property, Plant and Equipment and Intangible assets;

Æ Valuation of Inventories

Æ Measurement of Defined Benefit Obligations and actuarial assumptions;

Æ Provisions;

Æ Contingencies.

Revisions to accounting estimates are recognised prospectively in the Statement of Profit and Loss in the period in which the

estimates are revised and in any future periods affected.

1.2.Property, Plant and Equipment

1.2.1. Property, Plant and Equipment are stated at cost net of accumulated depreciation and accumulated impairment losses,

if any.

1.2.2. The initial costs of an asset comprises its purchase price or construction costs (including import duties and non-

refundable taxes), any costs directly attributable to bringing the asset into the location and condition necessary for it to

be capable of operating in the manner intended by management, the initial estimate of any decommissioning obligation,

if any, and borrowing cost for qualifying assets (i.e. assets that necessarily take a substantial period of time to get ready

for their intended use).


53

1.2.3. Subsequent expenditure is capitalized only if it is probable that the future economic benefits associated with the

expenditure will flow to the Company.

1.2.4. Expenditure on assets not exceeding threshold limit are charged to revenue.

1.2.5. Spare parts which meet the definition of Property, Plant and Equipment are capitalised as Property, Plant and

Equipment in case the unit value of the spare part is above the threshold limit. In other cases, the spare part is

inventorised on procurement and charged to Statement of Profit and Loss on consumption.

1.2.6. An item of Property, Plant and Equipment and any significant part initially recognized separately as part of Property,

Plant and Equipment is de-recognised upon disposal; or when no future economic benefits are expected from its use or

disposal. Any gain or loss arising on de-recognition of the asset is included in the Statement of Profit and Loss when the

asset is de-recognised.

1.2.7. The residual values and useful lives of Property, Plant and Equipment are reviewed at each financial year end and

changes, if any are accounted in line with revisions to accounting estimates.

1.2.8. The Company has elected to use exemption available under Ind AS 101 to continue the carrying value for all its Property,

Plant and Equipment as recognised in the financial statements as at the date of transition to Ind ASs, measured as per

previous GAAP and use that as its deemed cost as at the date of transition (1st April, 2016).

1.3. Depreciation

Depreciation on Property, Plant and Equipment are provided on straight line basis, over the estimated useful lives of assets

(after retaining the estimated residual value of 5%). These useful lives determined are in line with the useful lives as prescribed

in the Schedule II of the Act.

1.3.1. Items of Property, Plant and Equipment costing not more than the threshold limit are depreciated 100% in the year of

acquisition.

1.3.2. Components of the main asset that are significant in value and have different useful lives as compared to the main asset

are depreciated over their estimated useful life. Useful life of such components has been assessed based on historical

experience and internal technical assessment.

1.3.3. Depreciation on spare parts specific to an item of Property, Plant and Equipment is based on life of the related Property,

Plant and Equipment. In other cases, the spare parts are depreciated over their estimated useful life based on the

technical assessment.

1.3.4. Depreciation is charged on additions/ deletions on pro-rata monthly basis including the month of addition/ deletion.

1.4. Intangible Assets

1.4.1. Intangible assets are carried at cost net of accumulated amortization and accumulated impairment losses, if any.

1.5. Investment Property

1.5.1. Investment property is property (land or a building – or part of building – or both) held either to earn rental income or a

capital appreciation or for both, but not for sale in the ordinary course of business, use in production or supply of goods or

services or for administrative purposes.

1.5.2. Any gain or loss on disposal of investment property calculated as the difference between the net proceeds and the

carrying amount of the Investment Property is recognised in Statement of Profit and Loss.

1.6. Borrowing Costs

1.6.1. Borrowing costs consist of interest and other costs incurred in connection with the borrowing of funds. Borrowing costs

also include exchange differences to the extent regarded as an adjustment to the borrowing costs.

1.6.2. Borrowing costs that are attributable to the acquisition or construction of qualifying assets (i.e. an asset that necessarily

takes a substantial period of time to get ready for its intended use) are capitalized as a part of the cost of such assets. All

other borrowing costs are charged to the Statement of Profit and Loss.

Ecoplast Limited

54

1.7. Non current asset held for sale

1.7.1. Non-current assets are classified as held for sale if their carrying amounts will be recovered through a sale transaction

rather than through continuing use. This condition is regarded as met only when the sale is highly probable and the asset

is available for immediate sale in its present condition subject only to terms that are usual and customary for sale of such

assets.

1.7.2. Non-current assets classified as held for sale are measured at the lower of carrying amount and fair value less costs to

sell.

1.7.3. Property, Plant and Equipment and intangible assets classified as held for sale are not depreciated or amortized.

1.8. Leases

1.8.1. Finance Leases

A lease agreement that transfers substantially all the risks and rewards irrespective of whether title is transferred is classified as

a finance lease.

Finance lease are capitalized at the commencement of the lease at fair value of the leased property or, if lower, at present value

of minimum lease payment.

Leases of land where, the company assumes substantially all the risks and rewards of ownership are classified as finance

lease. Finance lease of land are capitalized at the lease’s inception at upfront lease payments.

A leased asset is depreciated over the useful life of the asset. However, if there is no reasonable certainty that the company will

obtain ownership by the end of the lease term, the asset is depreciated over the shorter of the useful estimated life of the asset

and the lease term.

Finance charges are recognised as finance charges in the Statement of Profit and Loss. Lease management fees, legal

charges and other initial direct costs of lease are capitalized.

1.8.2. Operating Leases

Lease Agreements which are not classified as finance leases are considered as Operating Leases.

Payments made under operating leases are recognised in Statement of Profit and Loss with reference to lease terms and other

relevant considerations. Lease incentives received/ lease premium paid (if any) are recognised as an integral part of the total

lease expense, over the term of the lease. Payments made under Operating Leases are generally recognised in Statement of

Profit and Loss on a straight line basis over the term of the lease, unless such payment is structured to increase in line with

expected general inflation.

1.8.3. Determining whether an arrangement contains a lease

At the inception of an arrangement, the Company determines whether the arrangement is or contains a lease. At inception or on

reassessment of an arrangement that contains a lease, the Company separates payments and other consideration required by

the arrangement into those for the lease and those for other elements on the basis of their relative fair values. In case of a

finance lease, if the Company concludes that it is impracticable to separate the payments reliably, then an asset and a liability

are recognised at an amount equal to the fair value of the underlying assets; subsequently, the liability is reduced as payments

are made and an imputed finance cost on the liability is recognised using the Company’s incremental borrowing rate.

1.9. Impairment of Non-financial Assets

1.9.1. Non-financial assets other than inventories, deferred tax assets and non-current assets classified as held for sale are

reviewed at each Balance Sheet date to determine whether there is any indication of impairment. If any such indication

exists, or when annual impairment testing for an asset is required, the Company estimates the asset’s recoverable

amount. The recoverable amount is higher of the assets or Cash-Generating Units (CGU’s) fair value less costs of

disposal and its value in use. Recoverable amount is determined for an individual asset, unless the asset does not

generate cash inflows that are largely independent of those from other assets or group of assets.


55

1.9.2. When the carrying amount of an asset or CGU exceeds its recoverable amount, the asset is considered impaired and is

written down to its recoverable amount.

1.10. Inventories

1.10.1.The cost for the purpose of valuation of Finished and Semi - Finished goods is arrived at on FIFO basis and includes

Cost of conversion and other cost incurred in bringing the inventories to their present location and condition. Due

allowance is estimated and made for defective and obsolete items, wherever necessary, based on the past experience

of the company.

The mode of valuing closing stock is as under:

Æ Raw Materials, Packing Materials, Machinery Spares, Ink and Fuel - at Cost or Net Realizable Value

Æ Finished and Semi - Finished goods – at lower of cost or net realizable value

Æ Scrap - net realizable value

1.10.2. Customs duty/GST on Raw materials/ finished goods lying in bonded warehouse is provided for at the applicable rates

except where liability to pay duty is transferred to consignee.

1.10.3. Excise duty on finished stocks lying at manufacturing locations is provided for at the assessable value applicable at

each of the locations based on end use.

1.10.4." Raw materials held for use in production of Finished Goods are written down below Cost , only if, the estimated Cost

or Net Realizable Value of Finished Goods will not exceed Net Realizable Value of such Raw Materials."

1.10.5.Obsolete, slow moving, surplus and defective stocks are identified at the time of physical verification of stocks and

where necessary, provision is made for such stocks.

1.11. Revenue Recognition

1.11.1. Sale of Goods

Revenue from the sale of goods is recognized when the significant risks and rewards of the ownership of the goods have

passed to the buyer, the Company retains neither continuing managerial involvement to the degree usually associated

with ownership nor effective control over the goods sold, revenue and the associated costs can be estimated reliably

and it is probable that economic benefits associated with the transaction will flow to the Company.

Revenue from sale of goods includes excise duty and is measured at the fair value of the consideration received or

receivable (after including fair value allocations related to multiple deliverable and/or linked arrangements), after the

deduction of any trade discounts, volume rebates, net of returns, taxes or duties collected on behalf of the government.

When the Company acts as an agent on behalf of a third party, the associated income is recognized on net basis.

Export Sales are accounted for on the basis of the date of Bill of Lading.

1.11.2. Claims are recognized on settlement. Export incentives are accounted where there is reasonable assurance that the

incentive income will be received and all attached conditions will be complied with.

1.11.3. Interest income is recognized using Effective Interest Rate (EIR) method.

1.11.4. Dividend is recognized when right to receive the income is established, it is probable that the economic benefits

associated with the dividend will flow to the entity and the amount of dividend can be measured reliably.

1.12. Classification of Income/ Expenses

1.12.1.Income/ expenditure (net) in aggregate pertaining to prior year(s) above the threshold limit are corrected retrospectively

in the first set of financial statements approved for issue after their discovery by restating the comparative amounts and /

or restating the opening Balance Sheet for the earliest prior period presented.

1.12.2.Prepaid expenses up to threshold limit in each case, are charged to revenue as and when incurred.

Ecoplast Limited

56

1.13. Employee benefits

1.13.1.Short term employment benefits

Short term employee benefits such as salaries, wages, short-term compensated absences, performance incentives etc.,

and the expected cost of bonus, ex-gratia are recognized as an expense at an undiscounted amount in the Statement of

Profit and Loss of the year in which the related services are rendered.

1.13.2. Defined Contribution Plans

Æ Superannuation :

The Company has Defined Contribution Plan for Post employment benefits in the form of Superannuation Fund for certain

class of employees as per the scheme, administered through Life Insurance Corporation (LIC) and Trust which is

administered by the Trustees and is charged to revenue every year. Company has no further obligation beyond its

contributions

Æ Employee's Family Pension :

The Company has Defined Contribution Plan for Post-employment benefits in the form of family pension for all eligible

employees, which is administered by the Regional Provident Fund Commissioner and is charged to revenue every year.

Company has no further obligation beyond its monthly contributions.

Æ Provident Fund:

The Company has Defined Contribution Plan for Post-employment benefits in the form of Provident Fund for all eligible

employees; which is administered by the Regional Provident Fund Commissioner and is charged to revenue every year.

Company has no further obligations beyond its monthly contributions.

1.13.3. Defined Benefit Plans

Æ Gratuity :

The Company has a Defined Benefit Plan for Post-employment benefit in the form of gratuity for all eligible employees

which is administered through Life Insurance Corporation (LIC) and a trust which is administered by the trustees. Liability

for above defined benefit plan is provided on the basis of actuarial valuation as at the Balance Sheet date, carried out by an

independent actuary. The actuarial method used for measuring the liability is the Projected Unit Credit method.

Æ Compensated Absences :

Liability for Compensated Absences is provided on the basis of valuation, as at the Balance Sheet date, carried out by an

independent actuary. The Actuarial valuation method used for measuring the liability is the Projected Unit Credit method.

Under this method, the Defined Benefit Obligation is calculated taking into account pattern of availment of leave whilst in

service and qualifying salary on the date of availment of leave. In respect of encashment of leave, the Defined Benefit

obligation is calculated taking into account all types of the increment, salary growth, attrition rate and qualifying salary

projected up to the assumed date of encashment.

1.13.4.Termination Benefits:

Termination benefits are recognised as an expense as and when incurred.

1.13.5. The present value of the defined benefit obligation is determined by discounting the estimated future cash outflows by

reference to market yields at the end of the reporting period on Government bonds that have terms approximating to the

terms of the related obligation.

1.13.6.The net interest cost is calculated by applying the discount rate to the net balance of the defined benefit obligation and

the fair value of plan assets. This cost is included in employee benefit expense in the Statement of Profit and Loss.

1.13.7.Remeasurement gains and losses arising from experience adjustments and changes in actuarial assumptions are

recognised in the period in which they occur directly in Other Comprehensive Income. They are included in retained

earnings in the Statement of changes in equity and in the Balance Sheet.


57

1.13.8.Changes in the present value of the defined benefit obligation resulting from plan amendments or curtailments are

recognised immediately in profit or loss as past service cost.

1.14. Foreign Currency Transactions

1.14.1. Monetary Items

Transactions in foreign currencies are initially recorded at their respective exchange rates at the date the transaction

first qualifies for recognition.

Monetary assets and liabilities denominated in foreign currencies are translated at exchange rates prevailing on the

reporting date.

Exchange differences arising on settlement or translation of monetary items (except for long term foreign currency

monetary items outstanding as of 31st March 2016) are recognised in Statement of Profit and Loss either as profit or

loss on foreign currency transaction and translation or as borrowing costs to the extent regarded as an adjustment to

borrowing costs.

1.14.2. Non – Monetary items:

Non-monetary items that are measured in terms of historical cost in a foreign currency are translated using the

exchange rates at the dates of the initial transactions.

1.15. Investment in Subsidiaries

Investments in subsidiary company carried at cost less accumulated impairment losses, if any. Where an indication of

impairment exists, the carrying amount of the investment is assessed and written down immediately to its recoverable amount.

On disposal of investments in subsidiary company, the difference between net disposal proceeds and the carrying amounts are

recognised in the Statement of Profit and Loss.

1.16. Government Grants

1.16.1.Government grants are recognized at fair value where there is reasonable assurance that the grant will be received and

all attached conditions will be complied with.

1.16.2.When the grant relates to an expense item, it is recognized in Statement of Profit and Loss on a systematic basis over

the periods that the related costs, for which it is intended to compensate, are expensed.

1.16.3.Government grants relating to Property, Plant and Equipment are presented as deferred income and are credited to the

Statement of Profit and Loss on a systematic and rational basis over the useful life of the asset.

1.17. Provisions, Contingent Liabilities and Capital Commitments

1.17.1.Provisions are recognized when there is 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.

1.17.2.The expenses relating to a provision is presented in the Statement of Profit and Loss net of reimbursements, if any.

1.17.3.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 of time is recognized as a finance cost.

1.17.4.Contingent liabilities are possible obligations whose existence will only be confirmed by future events not wholly within

the control of the Company, or present obligations where it is not probable that an outflow of resources will be required or

the amount of the obligation cannot be measured with sufficient reliability.

1.17.5.Contingent liabilities are not recognized in the financial statements but are disclosed unless the possibility of an outflow

of economic resources is considered remote.

1.17.6.Contingent liabilities and Capital Commitments disclosed are in respect of items which in each case are above the

threshold limit.

Ecoplast Limited

58

1.18. Fair Value measurement

1.18.1. The Company measures certain financial instruments at fair value at each reporting date.

1.18.2. Certain accounting policies and disclosures require the measurement of fair values, for both financial and non- financial

assets and liabilities.

1.18.3. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction

between market participants at the measurement date in the principal or, in its absence, the most advantageous market

to which the Company has access at that date. The fair value of a liability also reflects its non-performance risk.

1.18.4. The best estimate of the fair value of a financial instrument on initial recognition is normally the transaction price – i.e. the

fair value of the consideration given or received. If the Company determines that the fair value on initial recognition

differs from the transaction price and the fair value is evidenced neither by a quoted price in an active market for an

identical asset or liability nor based on a valuation technique that uses only data from observable markets, then the

financial instrument is initially measured at fair value, adjusted to defer the difference between the fair value on initial

recognition and the transaction price. Subsequently that difference is recognised in Statement of Profit and Loss on an

appropriate basis over the life of the instrument but no later than when the valuation is wholly supported by observable

market data or the transaction is closed out.

1.18.5.While measuring the fair value of an asset or liability, the Company uses observable market data as far as possible. Fair

values are categorised into different levels in a fair value hierarchy based on the inputs used in the valuation technique

as follows:

Æ Level 1: quoted prices (unadjusted) in active markets for identical assets or liabilities.

Æ Level 2: inputs other than quoted prices included in Level 1 that are observable for the assets or liability, either directly

(i.e. as prices) or indirectly (i.e. derived from prices)

Æ Level 3: inputs for the assets or liability that are not based on observable market data (unobservable inputs)

1.18.6.When quoted price in active market for an instrument is available, the Company measures the fair value of the

instrument using that price. A market is regarded as active if transactions for the asset or liability take place with

sufficient frequency and volume to provide pricing information on an ongoing basis.

1.18.7.If there is no quoted price in an active market, then the Company uses a valuation techniques that maximise the use of

relevant observable inputs and minimise the use of unobservable inputs. The chosen valuation technique incorporates

all of the factors that market participants would take into account in pricing a transaction.

1.18.8.The Company regularly reviews significant unobservable inputs and valuation adjustments. If the third party

information, such as broker quotes or pricing services, is used to measure fair values, then the Company assesses the

evidence obtained from the third parties to support the conclusion that these valuations meet the requirements of Ind

AS, including the level in the fair value hierarchy in which the valuations should be classified.

1.19. Financial Assets

1.19.1. Initial recognition and measurement

Trade Receivables and debt securities issued are initially recognised when they are originated. All other financial assets

are initially recognised when the Company becomes a party to the contractual provisions of the instrument. All financial

assets other than those measured subsequently at fair value through profit and loss, are recognised initially at fair value

plus transaction costs that are attributable to the acquisition of the financial asset.

1.19.2.Subsequent measurement

Subsequent measurement is determined with reference to the classification of the respective financial assets. Based on

the business model for managing the financial assets and the contractual cash flow characteristics of the financial

asset, the Company classifies financial assets as subsequently measured at amortised cost, fair value through other

comprehensive income or fair value through profit and loss.


59

Debt instruments at amortised cost

A 'debt instrument' is measured at the amortised cost if both the following conditions are met:

The asset is held within a business model whose objective is

- To hold assets for collecting contractual cash flows, and

- Contractual terms of the asset give rise on specified dates to cash flows that are solely payments of principal and

interest (SPPI) on the principal amount outstanding.

After initial measurement, such financial assets are subsequently measured at amortised cost using the effective

interest rate (EIR) method. Amortised cost is calculated by taking into account any discount or premium and fees or

costs that are an integral part of the EIR. The EIR amortisation is included in finance income in the Statement of Profit

and Loss. The losses arising from impairment are recognised in the Statement of Profit and Loss.

Debt instruments at Fair value through Other Comprehensive Income (FVOCI)

A 'debt instrument' is measured at the fair value through Other Comprehensive Income if both the following conditions

are met:

"The asset is held within a business model whose objective is achieved by both”

- collecting contractual cash flows and selling financial assets and

- contractual terms of the asset give rise on specified dates to cash flows that are SPPI on the principal amount

outstanding.

After initial measurement, these assets are subsequently measured at fair value. Interest income under effective

interest method, foreign exchange gains and losses and impairment losses are recognised in the Statement of Profit

and Loss. Other net gains and losses are recognised in other comprehensive Income.

Debt instruments at Fair value through Profit or Loss (FVTPL)

Fair Value through Profit or Loss is a residual category for debt instruments. Any debt instrument, which does not meet

the criteria for categorisation at amortised cost or as FVOCI, is classified as FVTPL.

After initial measurement, any fair value changes including any interest income, foreign exchange gain and losses,

impairment losses and other net gains and losses are recognised in the Statement of Profit and Loss.

Equity investments

All equity investments within the scope of Ind AS 109 are measured at fair value. Such equity instruments which are held

for trading are classified as FVTPL. For all other such equity instruments, the Company decides to classify the same

either as FVOCI or FVTPL. The Company makes such election on an instrument-by-instrument basis. The classification

is made on initial recognition and is irrevocable.

For equity instruments classified as FVOCI, all fair value changes on the instrument, excluding dividends, are

recognized in Other Comprehensive Income (OCI). Dividends on such equity instruments are recognised in the

Statement of Profit or Loss.

Equity instruments included within the FVTPL category are measured at fair value with all changes recognized in the

Statement of Profit and Loss.

1.19.3.De-recognition

A financial asset (or, where applicable, a part of a financial asset or part of a group of similar financial assets) is primarily

derecognised (i.e. removed from the Company's Balance Sheet) when

Æ The rights to receive cash flows from the asset have expired, or

Æ The Company has transferred its rights to receive cash flows from the asset or has assumed an obligation to pay the

received cash flows in full without material delay to a third party under a 'pass-through' arrangement; and either:

Ecoplast Limited

60

- The Company has transferred substantially all the risks and rewards of the asset, or

- The Company has neither transferred nor retained substantially all the risks and rewards of the asset, but has

transferred control of the asset.

On de-recognition, any gains or losses on all debt instruments (other than debt instruments measured at FVOCI) and

equity instruments (measured at FVTPL) are recognised in the Statement of Profit and Loss. Gains and losses in

respect of debt instruments measured at FVOCI and that are accumulated in OCI are reclassified to profit or loss on de-

recognition. Gains or losses on equity instruments measured at FVOCI that are recognised and accumulated in OCI are

not reclassified to profit or loss on de-recognition.

1.19.4.Impairment of financial assets

In accordance with Ind AS 109, the Company applies Expected Credit Loss (“ECL”) model for measurement and

recognition of impairment loss on the financial assets measured at amortised cost and debt instruments measured at

FVOCI.

Loss allowances on trade receivables are measured following the ‘simplified approach’ at an amount equal to the

lifetime ECL at each reporting date.The application of simplified approach does not require the Company to track

changes in credit risk. Based on the past history and track records the company has assessed the risk of default by the

customer and expects the credit loss to be insignificant. In respect of other financial assets such as debt securities and

bank balances, the loss allowance is measured at 12 month ECL only if there is no significant deterioration in the credit

risk since initial recognition of the asset or asset is determined to have a low credit risk at the reporting date.

1.20. Financial Liabilities

\ 1.20.1.Initial recognition and measurement

Financial liabilities are initially recognised when the Company becomes a party to the contractual provisions of the

instrument.

Financial liability is initially measured at fair value plus, for an item not at fair value through profit and loss, transaction

costs that are directly attributable to its acquisition or issue.


Subsequent measurement is determined with reference to the classification of the respective financial liabilities.

Financial Liabilities at Fair Value through Profit or Loss (FVTPL)

A financial liability is classified as at Fair Value through Profit or Loss (FVTPL) if it is classified as held-for-trading or is

designated as such on initial recognition. Financial liabilities at FVTPL are measured at fair value and changes therein,

including any interest expense, are recognised in Statement of Profit and Loss.

Financial Liabilities at amortised cost

After initial recognition, financial liabilities other than those which are classified as FVTPL are subsequently measured at

amortised cost using the effective interest rate (“EIR”) method.

Amortised cost is calculated by taking into account any discount or premium and fees or costs that are an integral part of

the EIR. The amortisation done using the EIR method is included as finance costs in the Statement of Profit and Loss.

1.21. Financial guarantees

Financial guarantee contracts issued by the Company are those contracts that require a payment to be made to reimburse the

holder for a loss it incurs because the specified debtor fails to make a payment when due in accordance with the terms of the

debt instrument. Financial guarantee contracts are recognised initially as a liability at fair value, adjusted for transaction costs

that are directly attributable to the issuance of the guarantee. Subsequently, the liability is measured at the higher of the amount

of loss allowance determined as per impairment requirements of Ind AS 109 and the fair value initially recognised less

cumulative amortisation.


61

1.22. Embedded derivatives

If the hybrid contract contains a host that is a financial asset within the scope of Ind AS 109, the classification requirements

contained in Ind AS 109 are applied to the entire hybrid contract. Derivatives embedded in all other host contracts, including

financial liabilities are accounted for as separate derivatives and recorded at fair value if their economic characteristics and

risks are not closely related to those of the host contracts and the host contracts are not held for trading or designated at fair

value through profit and loss. These embedded derivatives are measured at fair value with changes in fair value recognised in

Statement of Profit and Loss, unless designated as effective hedging instruments. Reassessment only occurs if there is either a

change in the terms of the contract that significantly modifies the cash flows.

1.23. Offsetting of financial instruments

Financial assets and financial liabilities are offset and the net amount is reported in the Balance Sheet, if there is a currently

enforceable legal right to offset the recognised amounts and there is an intention to settle on a net basis, or to realise the assets

and settle the liabilities simultaneously.

1.24. Taxes on Income

1.24.1.Current Tax

Income-tax Assets and liabilities are measured at the amount expected to be recovered from or paid to the taxation

authorities. The tax rates and tax laws used to compute the amount are those that are enacted or substantively enacted,

by the end of reporting period.

Current Tax items are recognised in correlation to the underlying transaction either in the Statement of Profit and Loss,

other comprehensive income or directly in equity.

1.24.2.Deferred tax

Deferred tax is provided using the Balance Sheet method on temporary differences between the tax bases of assets and

liabilities and their carrying amounts for financial reporting purposes at the reporting date.

"Deferred tax liabilities are recognised for all taxable temporary differences.Deferred tax assets are recognised for all

deductible temporary differences, the carry forward of unused tax credits and any unused tax losses. 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 tax asset to be utilised.

Unrecognised deferred tax assets are re-assessed at each reporting date and are recognised to the extent that it has

become probable that future taxable profits will allow the deferred tax asset to be recovered.

Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the year when the asset is

realised or the liability is settled, based on tax rates and tax laws that have been enacted or substantively enacted at the

reporting date.

Deferred Tax items are recognised in correlation to the underlying transaction either in the Statement of Profit and Loss,

other comprehensive income or directly in equity.

Deferred tax assets and deferred tax liabilities are offset if a legally enforceable right exists to set off current tax assets

against current tax liabilities and the deferred taxes relate to the same taxable entity and the same taxation authority.

Ecoplast Limited

62

1.25. Earnings per share

Basic earnings per share are calculated by dividing the profit or loss for the period attributable to equity shareholders (after

deducting preference dividends, if any, and attributable taxes) by the weighted average number of equity shares outstanding

during the period.

For the purpose of calculating diluted earnings per share, the profit or loss for the period attributable to equity shareholders and

the weighted average number of shares outstanding during the period are adjusted for the effect of all dilutive potential equity

shares.

1.26. Classification of Assets and Liabilities as Current and Non-Current:

All assets and liabilities are classified as current or non-current as per the Company’s normal operating cycle (determined at 12

months) and other criteria set out in Schedule III of the Act.

1.27. Cash and Cash equivalents

Cash and cash equivalents in the Balance Sheet include cash at bank, cash, cheque, draft on hand and demand deposits with

an original maturity of less than three months, which are subject to an insignificant risk of changes in value.

For the purpose of Statement of Cash Flows, Cash and cash equivalents include cash at bank, cash, cheque and draft on hand.

The Company considers all highly liquid investments with a remaining maturity at the date of purchase of three months or less

and that are readily convertible to known amounts of cash to be cash equivalents.

1.28. Cash Flows

Cash flows are reported using the indirect method, where by net profit before tax is adjusted for the effects of transactions of a

non-cash nature, any deferrals or accruals of past or future operating cash receipts or payments and item of income or

expenses associated with investing or financing cash flows. The cash flows from operating, investing and financing activities

are segregated.

1.29. The Company has adopted the following materiality threshold limits in the preparation and presentation of

financials statements as given below:

Threshold ItemAccounting

PolicyReference

Unit ThresholdLimit Value

Capitalisation of spare parts meeting the definition of Property,

Equipment in each case

Depreciation at 100 percent in the year of acquisition

Income / expenditure (net) in aggregate pertaining to prior year(s)

Disclosure of Contingent liabilities and Capital Commitments

Prepaid expenses

Plant and

in each case

1.2.5.

1.3.1.

1.12.1.

1.17.6.

1.12.2

0.50

0.05

1.00

1.00

0.10

Lakhs

Lakhs

Lakhs

Lakhs

Lakhs


63

(i)

Gro

ss B

lock

incl

ude R

s.24,4

6,4

49

on r

eva

luatio

n o

f F

ixed A

ssets

as

on 3

1st

Marc

h,

1994 e

xcl

udin

g V

ehic

les,

Furn

iture

& F

ixtu

res

and O

ffic

e

Equip

ments

.

(ii)

Build

ings

incl

ude R

s.250 b

ein

g c

ost

of 5

share

s of R

s.50 e

ach

in R

iddhi P

rem

ises

Co-o

pera

tive H

ousin

g S

oci

ety

Ltd

.

(iii)

Ass

ets

are

morg

aged /

hyp

oth

eca

ted a

s se

curity

for b

orr

ow

ing.

(iv)

The C

om

pany

has

adopte

d c

arr

ying v

alu

e a

s re

cogniz

ed in t

he f

inanci

al st

ate

ment

as

at

31st

Marc

h,

2016,

measu

red a

s per

Pre

vious

GA

AP

as

its

deem

ed c

ost

.

No

te 2

: P

rop

ert

y, P

lan

t &

Eq

uip

men

t an

d In

tan

gib

le A

ssets

Part

icu

lars

Fre

eh

old

lan

dB

uild

ing

sP

lan

t &

Mach

inery

F

urn

itu

re&

Fix

ture

sV

eh

icle

sO

ffic

eE

qu

ipm

en

tTo

tal

Deem

ed

Co

st

as a

t 1st

Ap

ril, 2

016

Additi

ons

Dele

tions

Gro

ss C

arr

yin

g v

alu

e a

s o

n M

arc

h 3

1,2

017

Additi

ons

Dele

tions

Capita

lised / T

ransf

err

ed d

uring the Y

ear

Gro

ss C

arr

yin

g v

alu

e a

s o

n M

arc

h 3

1,2

018

Accu

mu

late

d d

ep

recia

tio

n a

s o

n A

pri

l 1,2

016

Depre

ciatio

n c

harg

e for

the y

ear

Depre

ciatio

n o

n d

ele

tion

Accu

mu

late

d d

ep

recia

tio

n a

s o

n M

arc

h 3

1,2

017

Depre

ciatio

n c

harg

e for

the y

ear

Depre

ciatio

n o

n d

ele

tion

Accu

mu

late

d d

ep

recia

tio

n a

s o

n M

arc

h 3

1,2

018

Net

bo

ok v

alu

e

At

01st

Ap

ril,

2016

At

31st

Marc

h, 2017

At

31st

Marc

h, 2018

50,9

6,1

85

-

-

50,9

6,1

85

-

-

50,9

6,1

85

-

-

-

-

-

-

-

50,9

6,1

85

50,9

6,1

85

50,9

6,1

85

2,5

1,3

7,7

59

67,3

5,9

03

-

3,1

8,7

3,6

62

4,0

0,7

94

-

3,2

2,7

4,4

56

-

13,7

3,2

96

-

13,7

3,2

96

15,1

0,6

50

-

28,8

3,9

46

2,5

1,3

7,7

59

3,0

5,0

0,3

66

2,9

3,9

0,5

10

6,8

5,4

2,6

36

3,2

1,0

2,4

46

-

10,0

6,4

5,0

82

1,3

4,3

2,9

04

-

11,4

0,7

7,9

86

-

1,4

9,8

1,1

60

-

1,4

9,8

1,1

60

1,5

0,9

8,1

82

-

3,0

0,7

9,3

42

6,8

5,4

2,6

36

8,5

6,6

3,9

22

8,3

9,9

8,6

44

3,6

2,3

12

1,8

9,5

48

10,1

20

5,4

1,7

40

7,0

0,8

96

-

12,4

2,6

36

-

80,0

63

776

79,2

87

92,7

80

-

1,7

2,0

67

3,6

2,3

12

4,6

2,4

53

10,7

0,5

69

36,7

1,2

01

70,2

01

-

37,4

1,4

02

-

11,5

3,9

68

25,8

7,4

34

-

7,6

6,2

07

-

7,6

6,2

07

7,5

8,9

23

9,7

3,2

47

5,5

1,8

83

36,7

1,2

01

29,7

5,1

95

20,3

5,5

51

19,6

6,6

64

6,2

6,9

47

-

25,9

3,6

11

10,9

3,1

06

50,9

10

36,3

5,8

07

-

6,5

6,5

41

-

6,5

6,5

41

7,5

0,3

38

48,3

65

13,5

8,5

14

19,6

6,6

64

19,3

7,0

70

22,7

7,2

93

10,4

7,7

6,7

58

3,9

7,2

5,0

45

10,1

20

14,4

4,9

1,6

83

1,5

6,2

7,7

00

12,0

4,8

78 -

15,8

9,1

4,5

05 -

1,7

8,5

7,2

67

776

1,7

8,5

6,4

91

1,8

2,1

0,8

73

10,2

1,6

12

3,5

0,4

5,7

52

10,4

7,7

6,7

58

12,6

6,3

5,1

92

12,3

8,6

8,7

53

No

tes t

o F

inan

cia

l S

tate

men

ts f

or

the y

ear

en

ded

31st

Marc

h,

2018

Am

ou

nt

+ (

Rs.)

Ecoplast Limited

64

Particulars Gross BlockAccumulatedDepreciation /Amortisation

Net Block as perIGAAP

Ind ASAdjustment

Net Block

As at1st April, 2016

Freehold Land

Building

Plant and Equipment

Furniture and Fixtures

Office Equipments

Vehicles

Total

50,96,185

4,44,10,418

21,44,49,289

38,96,647

1,46,53,761

91,71,626

29,16,77,926

-

1,92,72,659

14,59,06,653

35,34,335

1,26,87,097

55,00,424

18,69,01,169

50,96,185

2,51,37,759

6,85,42,636

3,62,312

19,66,664

36,71,201

10,47,76,758

50,96,185

2,51,37,759

6,85,42,636

3,62,312

19,66,664

36,71,201

10,47,76,758

-

-

-

-

-

-

-

2 CAPITAL WORK-IN-PROGRESS

Particulars As at31st March,2018

As at31st March,2017


Capital work-in-progress 38,47,366 6,40,959-

3 INVESTMENTS IN SUBSIDIARY




Investment in Equity Shares of a Subsidiary Company

" Unquoted 11,95,360 (As at 31 March 2017 :11,95,360) Equity

Shares of ` 10 each fully paid up in Synergy Films Pvt.Ltd. " 2,30,25,048 2,29,23,422 2,28,21,998

(includes Ind AS adjustment) - - -

Total 2,30,25,048 2,29,23,422 2,28,21,998

4 LOANS - NON CURRENT




Security deposits ( Unsecured, considered good) 66,59,551 66,59,551 42,68,277

Loan and Interest due thereon from Subsidiary Company 2,58,44,346 2,53,16,201 2,27,77,346

Loans and advances to employees 16,26,493 12,08,019 10,26,275

Total 3,41,30,390 3,31,83,771 2,80,71,898

5 OTHER NON CURRENT ASSETS




Prepaid Expenses 2,46,676 1,94,458 2,77,636

Capital Advances 44,64,324 - 38,61,500

Advance income tax net of provisions 36,21,975 34,12,202 8,42,078

CST & VAT receivable on Assessment 1,89,964 1,75,779 1,11,200

Total 85,22,939 37,82,439 50,92,414


65

Accordingly, its Net Block as on 31st March, 2016 is its Gross Block under Ind AS. Break up of the said Gross block as at1st April, 2016 is as under:

6 INVENTORIES




Raw materials 5,42,36,031 4,13,23,246 3,68,45,708

Raw-Materials in-transit 2,53,16,066 3,41,98,105 2,15,01,313

Work-in-progress 97,91,314 1,26,60,043 1,11,71,075

Finished goods 1,79,21,609 97,87,821 1,08,73,108

Finished Goods in-transit 38,44,334 43,40,219 22,73,061

Packing Material , Stores and Spares 22,84,782 9,67,834 28,50,875

Others - Scrap 4,303 17,624 13,949

Total 11,33,98,439 10,32,94,892 8,55,29,089

(i) The mode of valuation has been stated in Note 1.10 (ii) Inventories have been hypothecated as security for borrowings

7.1 TRADE RECEIVABLES




Unsecured

(i) Considered good 16,59,28,521 19,27,85,521 16,81,63,338

(ii) Considered doubtful 5,43,137 7,92,277 8,92,277

Less: Provision for doubtful trade receivables 5,61,051 10,46,565 8,93,069

Total 16,59,10,607 19,25,31,233 16,81,62,546

Includes Trade receivable from Related Parties : Rs. 17659/- (Previous Year Rs. 4030290/-) Refer Note No. 31

7.2 CASH AND CASH EQUIVALENTS




(i) Balances with banks

- In current accounts* 3,68,912 8,30,439 7,65,653

- In Fixed Deposit 5,82,000 - -

(ii) Cash in hand 5,80,264 3,39,476 3,10,028

Total 15,31,176 11,69,915 10,75,681

7.3 BANK BALANCES




“ In Fixed Deposit Accounts, held as margin money

against Letter of Credit " 18,48,497 24,55,468 10,26,568

Unpaid dividend accounts 8,65,407 8,41,190 17,92,518

Total 27,13,904 32,96,658 28,19,086

7.4 LOANS - CURRENT




Loans and Advances to employees 18,45,970 10,39,462 9,11,877

Total 18,45,970 10,39,462 9,11,877

Ecoplast Limited

66

Authorised share capital: No. of shares AmountBalance as at 1st April,2016 1,00,00,000 10,00,00,000Add / (Less): Changes during the year - -Balance as at 31st March,2017 1,00,00,000 10,00,00,000Add / (Less): Changes during the year - -Balance as at 31st March,2018 1,00,00,000 10,00,00,000Issued, Subscribed and paid up share capital: No. of shares AmountBalance as at 1st April,2016 30,00,000 3,00,00,000Add / (Less): Changes during the year - -Balance as at 31st March,2017 30,00,000 3,00,00,000Add / (Less): Changes during the year - -Balance as at 31st March,2018 30,00,000 3,00,00,000

7.5 OTHER FINANCIAL ASSETS




Interest accrued on Fixed Deposits with Banks &Other Deposits 5,90,842 5,32,545 3,93,797

Discount Receivable 2,59,400 14,08,373 9,42,846

Total 8,50,242 19,40,918 13,36,643

8 OTHER CURRENT ASSETS




TDS Refund Receivable 3,60,814 3,60,814 4,39,326

Cenvat credit receivable - 19,20,811 11,33,248

Service Tax credit receivable - 31,79,043 12,16,933

Prepaid expenses 29,86,308 24,65,562 26,66,709

Advance to Trade Payables 14,66,268 5,05,905 1,08,932

Total 48,13,390 84,32,135 55,65,148

9 EQUITY SHARE CAPITAL




Authorised

1,00,00,000 Equity Shares of Rs.10/- each 10,00,00,000 10,00,00,000 10,00,00,000

Issued, Subscribed and Paid up

30,00,000 Equity Shares of Rs. 10/- each fully paid up 3,00,00,000 3,00,00,000 3,00,00,000

Total 3,00,00,000 3,00,00,000 3,00,00,000

Notes:(i) Reconciliation of number of shares outstanding at the beginning and end of the year:

(ii) The Company has only one class of equity shares having a par value of Rs. 10 per share. Each Shareholder is eligible for one vote per share

(iii) The Paid-up Capital includes 1,500,000 Equity Shares of Rs.10 each allotted as fully paid up Bonus shares by capitalising Rs.5,000,000 out of General Reserve and Rs.10,000,000 out of Revaluation Reserve prior to listing of Company's Equity Shares.

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

(v) The Company declares and pays dividends in Indian rupees. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting except in case of interim dividend.

(vi) During the Year there are no Changes in Number of Shares outstanding at the end of the reporting period in comparison to number of Shares Outstanding at the beginning of the reporting period.


67

Mrs Amita J.Desai

As at 1st April 2016 5,41,846 18.06%

As at 31st March, 2017 5,41,846 18.06%

As at 31st March, 2018 5,42,146 18.07%

Mrs Charulata N.Patel

As at 1st April 2016 3,77,783 12.59%

As at 31st March, 2017 3,83,911 12.80%

As at 31st March, 2018 3,83,911 12.80%

Silver Stream Properties LLP

As at 1st April 2016 4,76,827 15.89%

As at 31st March, 2017 4,76,827 15.89%

As at 31st March, 2018 4,76,827 15.89%

(vii) Details of shares held by each shareholder holding more than 5% shares in the Company:

Equity share of Rs. 10 each fully paid up with voting rightsNumber of fully

paid equity shares% Holding

10 OTHER EQUITY




(a) Securities premium Reserve

Balance as per last Balance Sheet 3,00,00,000 3,00,00,000 3,00,00,000

Closing Balance 3,00,00,000 3,00,00,000 3,00,00,000

(b) General reserve


Add: Transferred from surplus in Statement of Profit and Loss - - 25,00,000

Closing Balance 5,07,81,315 5,07,81,315 5,07,81,315

(c) Retained Earnings

Balance as at beginning of the year 13,24,38,655 10,93,73,109 9,38,79,667

Add: Profit for the year 2,97,37,815 2,30,65,546 2,34,09,536

16,21,76,470 13,24,38,655 11,72,89,203

Less: Appropriations

Transferred to General reserve - - 25,00,000

Payment of final Dividend to equity shareholders(Rs1.20 per share) 36,00,000 - -

Payment of Dividend distribution tax on final dividend 7,32,875 - -

Payment of Interim dividend - - 45,00,000

Payment of Dividend distribution tax on interim dividend - - 9,16,094

Closing Balance 15,78,43,595 13,24,38,655 10,93,73,109

(d) Other Comprehensive income

Balance as at beginning of the year (18,74,765) -

Add: Remeasurement of Net defined benefit liability/(asset) (net of tax) 3,46,294 (18,74,764)

(15,28,471) (18,74,764) -

Total 23,70,96,439 21,13,45,206 19,01,54,424

Ecoplast Limited

68

Securities premiumSecurities reserve is used to record the Premium on issue of shares. This reserve is utilized in accordance with the provisions of the Act.General ReserveThe general reserve is used from time to time to transfer profits from retained earnings for appropriations purposes. As the general reserve is created by a transfer from one component of equity to another and is not an item of other comprehensive income, items included in the general reserve will not be reclassified subsequently to profit or loss.Retained earningsRetained earnings are the profits that the Company has earned till date, less any transfers to the general reserve, dividends or other distributions paid to shareholders.Other Comprehensive incomeThese are actuarial gains/ losses on employee benefit obligations.

11 NON CURRENT BORROWINGS




Secured

Term Loans

Bank of Baroda Term Loan IV 7,14,430 24,78,282 42,40,698

Bank of Baroda Coporate Loan V 40,72,140 86,67,577 1,77,55,726

Bank of Baroda Term Loan VI 37,21,920 57,25,723

Bank of Baroda Term Loan VII 1,01,97,555 1,37,01,233

Unsecured

Car Loan 3,64,594

Total 1,87,06,045 3,05,72,815 2,23,61,018

Details:

(i) The above are valued at Amortized cost.

(ii) The above Loans are Secured by Equitable Mortgage of Land & Factory Building of the Company at Abrama-Valsad, Office Premises at Andheri (East) Mumbai & hypothecation of Plant and Machineries, Electrical Installations, Furniture & Fixtures, Office Equpments and Other Movable Fixed Assets of the Company, both present and future and hypothecation of raw materials ,stock in process, Stores & Spares, packing materials and finished goods and book debts of the Company both present and future and further secured by personal guarantee of Managing Director.

(iii) Interest Rate Profile of Term Loans & Deposits are set out as below:

Particulars Rate of Interest(p.a.) Amount in Rs.

Term Loan from Bank-IV 10.00% 24,79,000

Corporate Loan from Bank-V 10.00% 88,45,000

Term Loan from Bank-VI 10.00% 57,27,000

Term Loan from Bank-VII 10.00% 1,37,04,000

3,07,55,000

(iv) Maturity Profile of Term Loans & Deposits is set out below:

ParticularsMaturity Profile (Amount in `)

Term Loan from Bank-IV 24,79,000 - -

Corporate Loan from Bank-V 88,45,000 - -

Term Loan from Bank-VI 40,08,000 17,19,000 -

Term Loan from Bank-VII 70,08,000 66,96,000

Car Loan under Hire Purchase

1-2 years 3-4 years > 4 years


69

12 PROVISIONS




Provision for employee benefits:

Provision for compensated absences 47,82,952 43,00,200 34,75,187

Total 47,82,952 43,00,200 34,75,187

13 DEFERRED TAX LIABILITIES (NET)




Tax effect of items constituting deferred tax liability

On difference between book balance and tax balance of fixed assets 1,20,40,928 1,31,18,441 1,22,70,809

Loan to subsidiary 17,14,572 8,39,421

Financial Guarantee 176 243

Tax effect of items constituting deferred tax liability 1,37,55,676 1,39,58,105 1,22,70,809

Tax effect of items constituting deferred tax assets

Provision for compensated absences, gratuity and other employee benefits 25,04,666 29,33,812 23,68,556

Provision for doubtful debts / advances 1,85,500 3,46,026 2,95,275

Provision for diminution in the value of investments 15,86,049 15,86,049 15,86,049

Financial Guarantee 33,777 33,777 33,777

Tax effect of items constituting deferred tax assets 43,09,992 48,99,663 42,83,657

Net deferred tax (Liability) / Asset (94,45,684) (90,58,442) (79,87,152)

14.1 BORROWINGS (SHORT TERM)




Loans repayable on demand

From banks

Secured (@10%pa) 6,61,16,945 8,99,06,756 6,35,23,334

From Others - Unsecured

Inter Corporate Deposits (@11.5%pa) 80,00,000 80,00,000 80,00,000

Car Finance under H.P. Agreement - 3,59,819 10,31,428

Total 7,41,16,945 9,82,66,575 7,25,54,762

(i) Details of Security for the secured short-term borrowings:

Secured by hypothecation of inventories, book debts of the Company both present & futures and collaterally secured by equitable mortgage of Company's Land and Factory Buildings at Abrama-Valsad and Office Premises at Andheri (East) Mumbai, hypothecation of Plant and Machineries and guaranteed by Managing Director

(ii) The above are valued at Amortized cost.

Ecoplast Limited

70

14.2 TRADE PAYABLES




Trade payables:

Micro, Small and Medium Enterprises 2,99,989 6,71,965 4,93,582

Trade Payable to Related Party 5,22,911 9,47,908 0

Others 8,43,24,998 9,34,00,677 8,19,19,266

Total 8,51,47,898 9,50,20,550 8,24,12,848

(i) Disclosure under the Micro, Small and Medium Enterprises Development Act, 2006 :

Amount due to Micro, Small and Medium Enterprises as on 31st March, 2018 are disclosed on the basis of information available with the Company regarding status of the suppliers is as follows :

ParticularsAs at

31st March,2018As at


1st April, 2016

Principal Amount due and remaining unpaid 36,551 6,71,165 4,93,582

Interest due on above and the unpaid interest 402 25,228 15,674

Interest paid during the year - -

Payment made beyond the appointed day during the year 2,22,421 1,27,147 7,86,092

Interest due and payable for the period of delay 365 361 419

Interest accrued and remaining unpaid 767 25,589 16,093

Amount of further interest remaining due and payable in succeeding years 26,356 25,589 22,856

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

14.3 OTHER FINANCIAL LIABILITIES




Current maturities of long-term Secured Debts (Refer Note no.11) 1,19,28,000 1,19,28,000 77,64,000

Unclaimed dividends 8,65,347 8,40,530 10,25,907

Unclaimed matured deposits and interest accrued thereon 18,710 23,022 1,41,482

Financial guarantee obligation 1,01,626 1,01,424 1,02,158

Total 1,29,13,683 1,28,92,976 90,33,548

15 OTHER CURRENT LIABILITIES




Statutory dues payable 21,89,214 30,52,069 34,40,340

Advances from customers 21,05,584 22,87,202 9,43,226

Others -Net Salaries & Wages Payable 6,35,530 7,08,170 7,53,012

Total 49,30,328 60,47,441 51,36,578

16 PROVISIONS





Provision for bonus 18,65,335 17,78,902 16,93,824


Provision for gratuity 9,27,148 14,23,393 5,81,108

Total 34,70,885 45,73,198 36,88,580


71

17 REVENUE FROM OPERATIONS

Particulars For the year ended31st March, 2017

Sale of products

Manufactured goods

Plastic Film 95,77,11,933 1,04,13,60,057

Others 40,91,050 46,02,000

Traded goods

Others 2,72,43,892 2,16,95,716

Other operating revenues

Sale of Scrap 14,50,605 15,33,393

Total 99,04,97,480 1,06,91,91,166

For the year ended31st March, 2018

Footnote:

Impact of implementation of Goods and Services Tax (GST) on the financial statements

In accordance with Ind AS 18 on “Revenue” and Schedule III to the Companies Act, 2013, Sales for the previous year ended 31

March 2017 and for the period 01 April to 30 June 2017 were reported gross of Excise Duty and net of Value Added Tax (VAT)/ Sales

Tax. Excise Duty was reported as a separate expense line item. Consequent to the introduction of Goods and Services Tax (GST)

with effect from 1 July 2017, VAT/Sales Tax, Excise Duty etc. have been subsumed into GST and accordingly the same is not

recognised as part of sales as per the requirements of Ind AS 18. This has resulted in lower reported sales in the current year in

comparison to the sales reported under the pre-GST structure of indirect taxes. With the change in structure of indirect taxes,

expenses are also being reported net of taxes. Accordingly, Financial statements for the year ended 31 March 2018 and in

particular, Sales, absolute expenses, elements of Working Capital (Inventories, Trade payable, other current assets/current

liabilities etc.) and ratios in percentage of sales, are not comparable with the figures of the previous year.

18 OTHER INCOME


Interest income

Interest from banks on Fixed Deposits 1,55,410 2,33,112

Interest on Deposit with Dakshin Gujarat Vij Co Ltd. & Others 5,12,318 4,63,662

Interest on Employees Loan 1,44,984 86,202

Interest on loan to subsidiary 26,46,917 25,38,855

Other non-operating income

Profit on sale of fixed assets 66,733 1,20,187

Liabilities / provisions no longer required written back (net) 2,49,140 1,13,191

Insurance Claim Received 3,10,758 5,12,303

Gain on foreign currency transactions and translation (net) 58,41,812 51,25,412

Miscellaneous income 10,96,330 10,56,875

Sundry Creditors W.back/ W.off 97,671 -

Export Incentive - MEIS Duty Script 49,20,182 -

Fair Valuation of financial guarantee 1,01,424 1,02,158

Total 1,61,43,679 1,03,51,957


Ecoplast Limited

72

19 COST OF MATERIALS CONSUMED


Opening Stock 4,13,40,870 3,68,59,657

Add: Purchases 71,72,42,699 72,86,19,742

ess: Closing Stock 5,42,40,334 4,13,40,870

Purchases Includes Stock in Trade 2,63,55,529 2,16,95,716

Total Cost of materials consumed 70,43,43,235 72,41,38,529


20 CHANGES IN INVENTORIES OF FINISHED GOODS AND WORK IN PROGRESS


Inventories at the end of the year:

Finished goods 2,17,65,943 1,28,58,700

Work-in-progress 97,91,314 1,26,60,043

3,15,57,257 2,55,18,743

Inventories at the beginning of the year:

Finished goods 1,28,58,700 1,17,38,238

Work-in-progress 1,26,60,043 1,11,71,075

2,55,18,743 2,29,09,313

Add/(Less) :- Variation in excise duty on opening and closing

stock of finished goods - (1,38,591)

Net (increase) / decrease (60,38,514) (24,70,839)


21 EXCISE DUTY


Excise duty (Gross) 3,11,49,764 10,77,85,516

Total 3,11,49,764 10,77,85,516


22 EMPLOYEE BENEFIT EXPENSES


Salaries, Wages, Bonus and Other Allowances 6,37,47,241 5,88,46,190

Contributions to Provident and other funds 74,12,928 63,23,365

Staff Welfare expenses 14,80,127 11,37,853

Total 7,26,40,296 6,63,07,408


Footnote:

Contribution to Provident and other funds includes contribution to Provident fund for directors Rs. 6,76,800 (For 31st March, 2017:

Rs. 6,04,800; For 1st April, 2016: Rs.5,40,000)


73

23 FINANCE COSTS


Interest expense 1,32,14,204 1,59,06,832

Other Borrowing costs 21,72,843 26,09,162

Total 1,53,87,047 1,85,15,994


24 OTHER EXPENSES


Consumption of Stores and Spare parts 14,38,749 30,78,796

Consumption of Packing Materials 2,08,65,432 1,99,87,182

Consumption of Printing Cylinders 24,76,529 16,94,199

Power and fuel 4,30,35,733 4,30,44,473

Conversion Charges Paid 9,07,927 1,67,086

Rent Paid 32,000 -

Repairs and Maintenance - Buildings 22,22,045 14,66,789

Repairs and Maintenance - Machinery 74,90,682 60,51,850

Repairs and Maintenance - Others 7,89,706 6,33,338

Insurance 24,31,500 23,80,153

Rates and taxes 4,27,234 1,82,019

Communication 8,40,496 7,57,952

Travelling and Conveyance 65,58,689 42,54,056

Printing and Stationery 10,81,099 11,33,035

Freight and forwarding 1,18,61,959 1,10,12,948

Sales Commission 5,08,265 2,08,841

Sales discount - 3,00,648

Business promotion 64,399 87,013

Donations and contributions 3,45,000 3,00,000

Motor Car Expenses 8,34,686 7,91,851

Security Charges 18,17,909 16,80,668

Royalty Paid 44,92,543 53,80,400

Directors Sitting Fees 9,00,000 8,20,000

Commission to Non-Executive Directors 4,46,231 2,90,385

Legal and Professional 66,02,263 29,56,550

Payments to Auditors 7,28,722 10,82,141

Other Miscellaneous Expenses 47,80,558 50,02,083

Total 12,39,80,355 11,47,44,456



Payments to the auditors comprisesTo statutory auditorsAudit Fees 4,00,000 4,00,000Taxation Matters - 70,000Company Law Matters - 70,000Tax Audit Fees - 70,000Certification and Other Services 2,70,894 2,99,423Reimburesment of Expenses 57,828 1,72,718Total 7,28,722 10,82,141


Ecoplast Limited

74

a. Equity Share Capital:

Particulars

Balance as at April, 2016 3,00,00,000

Changes in equity share capital during the year 2016-17 -

Balance as at the 31 March 2017 3,00,00,000

Changes in equity share capital during 2017-18 -


Amount

STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 31ST MARCH, 2018

Amount (Rs.)

b. Other Equity:

Particulars

As at 1st April, 2016 5,07,81,315 3,00,00,000 10,93,73,109 19,01,54,424

Profit for the year - - 2,30,65,546 2,30,65,546

Other comprehensive income for the year - - 0

Remeasurement of the Net Defined benefit

liability/asset, net of tax effect - - (18,74,764) (-18,74,764)

As at 31st March, 2017 5,07,81,315 3,00,00,000 13,24,38,655 (18,74,764) 21,13,45,206

Profit for the year 2,97,37,815 2,97,37,815

Corporate Dividend (36,00,000) (36,00,000)

Corporate Dividend Tax (7,32,875) (7,32,875)

-

Other comprehensive income for the year


liability/asset, net of tax effect 3,46,294 3,46,294

As at 31st March, 2018 5,07,81,315 3,00,00,000 15,78,43,595 (15,28,470) 23,70,96,440

Reserves and Surplus

GeneralReserve

Total EquityOther

ComprehensiveIncome (OCI)

SecuritiesPremium

RetainedEarnings

25. FIRST-TIME ADOPTION OF IND AS:

These are the Company’s first financial statements prepared in accordance with Ind AS.

The Company has adopted Indian Accounting Standards (Ind AS) notified by the Ministry of Corporate Affairs with effect from

1st April, 2017, with a transition date of 1st April, 2016. Ind AS 101 - First time adoption of Indian Accounting Standards

requires that all Ind AS's and interpretations that are issued an effective for the first Ind AS financial statements which is for the

year ended 31st March, 2018 for the Company, be applied retrospectively and consistently for all financial years presented.

Set out below are the Ind AS 101 optional exemptions availed as applicable and mandatory exceptions applied in the transition

from previous GAAP to Ind AS.

A. Optional Exemptions availed:

(a) Deemed Cost

The Company has elected to continue with the carrying value for all of its property, plant and equipment and Intangible assets

as recognized in the financial statement as at 31.03.2016, measured as per the previous GAAP and use that as its deemed

cost as at the transition date.


75

(b) Investments in subsidiary

The Company has elected to continue with the carrying amount of investment as recognized in the financial statement as at

31.03.2016, measured as per the previous GAAP and used that as its deemed cost as at the transition date.

B. Applicable Mandatory Exceptions

(a) Estimates

An entity’s estimates in accordance with Ind AS at the date of transition to Ind AS shall be consistent with estimates made for

the same date in accordance with previous GAAP (after adjustments to reflect any difference in accounting policies).

Ind AS estimates as at 1 April 2016 are consistent with the estimates as at the same date made in conformity with previous

GAAP. The Company made estimates for following items in accordance with Ind AS at the date of transition as these were not

required under previous GAAP:

(i) Impairment of financial assets based on expected credit loss model.

(b) Derecognition of financial assets and financial liabilities

Ind AS 101 requires a first time adopter to apply the derecognition provisions of Ind AS 109 prospectively for transactions

occurring on or after the date of transition to Ind AS. However, Ind AS 101 allows the first time adopter to apply the de-

recognition requirement in Ind AS 109 retrospectively from the date to the entities choosing, provided that the information

needed to apply Ind AS 109 to financial assets and financial liabilities to de-recognized as a result of past transactions was

obtained at the time of initially accounting for those transactions. The Company has elected to apply the de-recognition

provision of Ind AS 109 prospectively from the date of transition to Ind AS.

(c) Classification and measurement of financial assets

As required under Ind AS 101 the Company has assessed the classification and measurement of financial assets on the basis

of the facts and circumstances that exist at the date of transition to Ind AS. Where practicable, measurement of financial

assets accounted at amortized cost has been done retrospectively.

(d) Impairment of Financial Assets

Ind AS 101 requires an entity to apply the Ind AS requirements retrospectively if it is practicable without undue cost and effort to

determine the credit risk that debt financial instruments where initially recognized. The company has measured impairment

losses on financial assets as on the date of transition i.e. 1st April, 2016 in view of cost and effort.

C. Transition to Ind AS - Reconciliations

The following reconciliations provide a quantification of the effect of significant differences arising from the transition from

previous GAAP to Ind AS as required under Ind AS 101:

(i) Reconciliation of Balance sheet as at 1st April, 2016 (Transition Date);

(ii) Reconciliation of Balance sheet as at 31st March, 2017;

(iii) Reconciliation of Total Comprehensive Income for the year ended 31st March, 2017

(iv) Reconciliation of Total Equity as at 1st April, 2016 and as at 31st March, 2017;

(v) Adjustments to Cash Flow Statements as at 31st March, 2017

The presentation requirements under previous GAAP differs from Ind AS, and hence, previous GAAP information has been

regrouped for ease of reconciliation with Ind AS. The re-grouped previous GAAP information is derived from the Financial

Statements of the Company prepared in accordance with previous GAAP.

Ecoplast Limited

76

(i)

& (

ii)

Reco

ncilia

tio

n o

f B

ala

nce s

heet

as a

t 1st

Ap

ril, 2

016 (

Tra

nsit

ion

Date

) an

d 3

1st

Marc

h, 2017:

Pa

rtic

ula

rs

As

at 3

1st M

arch

, 201

7(E

nd o

f the

last

per

iod

pres

ente

d un

der

prev

ious

GA

AP

)N

ote

sP

rev

iou

sG

AA

P

Am

ou

nt

as

pe

r In

d A

Sb

ala

nc

e s

he

et

Effe

cts

of tr

ansi

tion

to In

d A

S (in

clud

ing

recl

assi

ficat

ions

)

As

at 1

st A

pri

l, 20

16 (

Dat

e o

f tr

ansi

tio

n)

Pre

vio

us

GA

AP

Am

ou

nt

asp

er In

d A

Sb

alan

ce s

hee

t

Effe

cts

of tr

ansi

tion

to In

d AS

(inc

ludi

ngre

clas

sific

atio

ns)

(1)

No

n-c

urr

en

t assets

(a)

Pro

pert

y, P

lant

and E

quip

ment

12

,66

,35

,19

2-

12

,66

,35,1

92

10,4

7,7

6,7

57

- 1

0,4

7,7

6,7

58

(b)

Capita

l work

-in-p

rogre

ss 3

8,4

7,3

66

-

38

,47,3

66

6,4

0,9

59

-

6,4

0,9

59

(c)

Inve

stm

ent

in S

ubsi

dia

ries

and J

oin

t V

en

ture

C 8

1,7

6,2

57

1

,47

,47

,16

5

2,2

9,2

3,4

22

81,7

6,2

57

1,4

6,4

5,7

41

2,2

8,2

1,9

98

(d)

Fin

ancia

l Ass

ets

-

-

(

i) L

oan

sC

4,9

0,0

0,0

30

(

1,5

8,1

6,2

60

) 3

,31

,83,7

71

4,2

5,1

3,3

23

(1,4

4,4

1,4

25)

2,8

0,7

1,8

98

(e)

Oth

er

non-c

urr

ent

ass

ets

-

37

,82

,43

9

37

,82,4

39

50,9

2,4

14

-

50,9

2,4

14

To

tal n

on

-cu

rren

t a

ssets

18

,76

,58

,84

5

27

,13

,34

4

19

,03

,72,1

90

16,1

1,9

9,7

10

2,0

4,3

16

16,1

4,0

4,0

27

(2)

Cu

rren

t assets

(a)

Inve

nto

ries

10

,32

,94

,89

2

-

10

,32

,94,8

92

8,5

5,2

9,0

89

-

8,5

5,2

9,0

89

(b)

Fin

ancia

l Ass

ets

-

-

(

i) T

rad

e R

ece

ivable

sB

19

,27

,85

,52

1

(2

,54

,28

8)

19

,25

,31,2

33

16,8

1,6

3,3

38

(792)

16,8

1,6

2,5

46

(

ii) C

ash

and c

ash

equiv

ale

nts

11

,69

,91

5

-

11

,69,9

15

10,7

5,6

81

-

10,7

5,6

81

(

iii)

Ban

k bala

nce

s oth

er

than (

iii)

abo

ve 3

2,9

6,6

58

-

32

,96,6

58

28,1

9,0

86

-

28,1

9,0

86

(

iv)

Loa

ns

91

,61

,71

8

(8

1,2

2,2

56

) 1

0,3

9,4

62

9,1

1,8

77

-

9,1

1,8

77

(

v) O

ther

financi

al a

ssets

-

19

,40

,91

8

19

,40,9

18

13,3

6,6

43

-

13,3

6,6

43

(c)

Oth

er

curr

ent

ass

ets

23

,01

,73

2

61

,30

,40

3

84

,32,1

35

55,6

5,1

48

-

55,6

5,1

48

To

tal cu

rren

t assets

31

,20

,10

,43

6

(3

,05

,22

3)

31

,17

,05,2

13

26,5

4,0

0,8

62

(792)

26,5

4,0

0,0

70

To

tal A

ss

ets

49

,96

,69

,28

1

24

,08

,12

1

50

,20

,77,4

03

42,6

6,0

0,5

72

2,0

3,5

24

42,6

8,0

4,0

97

EQ

UIT

Y A

ND

LIA

BIL

ITIE

S

Eq

uit

y

(a)

Equity

Share

capita

l 3

,00

,00

,00

0

-

3,0

0,0

0,0

00

3,0

0,0

0,0

00

-

3,0

0,0

0,0

00

(b)O

ther

Equity

20

,96

,94

,00

6

16

,51

,19

9

21

,13

,45,2

06

19,0

0,1

9,0

20

1,3

5,4

04

19,0

1,5

4,4

24

Tota

l equity

23

,96

,94

,00

6

16

,51

,19

9

24

,13

,45,2

06

22,0

0,1

9,0

20

1,3

5,4

04

22,0

1,5

4,4

24

Lia

bilit

ies

(1)

No

n-c

urr

en

t li

ab

ilit

ies

(a)

Fin

ancia

l Lia

bili

ties

(i)

Borr

ow

ings

3,0

7,5

5,0

00

(

1,8

2,1

85

) 3

,05

,72,8

15

2,2

3,6

1,0

18

-

2,2

3,6

1,0

18

(b)

Pro

visi

ons

43

,00

,20

0

-

43

,00,2

00

34,7

5,1

87

-

34,7

5,1

87

(c)

Defe

rre

d t

ax

liabili

ties

(Net)

82

,20

,75

9

8,3

7,6

83

9

0,5

8,4

42

80,2

1,1

90

(34,0

39)

79,8

7,1

52

To

tal n

on

cu

rren

t li

ab

ilit

ies

4,3

2,7

5,9

59

6

,55

,49

8

4,3

9,3

1,4

57

3,3

8,5

7,3

95

(34,0

39)

3,3

8,2

3,3

57

(2)

Cu

rren

t liab

ilit

ies

(a)

Fin

ancia

l Lia

bili

ties

(i)

Borr

ow

ings

9,8

2,6

6,5

75

-

9,8

2,6

6,5

75

7,2

5,5

4,7

62

-

7,2

5,5

4,7

62

(

ii) T

rad

e p

aya

ble

s 9

,50

,20

,55

0

-

9,5

0,2

0,5

50

8,2

4,1

2,8

48

-

8,2

4,1

2,8

48

(

iii)

Oth

er

financi

al l

iabili

ties

A -

1,2

8,9

2,9

76

1

,28

,92,9

76

89,3

1,3

90

1,0

2,1

58

90,3

3,5

48

(b)

Oth

er

curr

ent

liabili

ties

1,8

8,3

8,9

93

(

1,2

7,9

1,5

52

) 6

0,4

7,4

41

51,3

6,5

78

-

51,3

6,5

78

(c)

Pro

visi

ons

45

,73

,19

8

-

45

,73,1

98

36,8

8,5

80

-

36,8

8,5

80

To

tal cu

rren

t li

ab

ilit

ies

21

,66

,99

,31

6

1,0

1,4

24

2

1,6

8,0

0,7

40

17,2

7,2

4,1

58

1,0

2,1

58

17,2

8,2

6,3

16

TO

TA

L E

QU

ITY

AN

D L

IAB

ILIT

IES

49

,96

,69

,28

1

24

,08

,12

2

50

,20

,77,4

03

42,6

6,0

0,5

72

2,0

3,5

24

42,6

8,0

4,0

97


77

(iii) Reconciliation of Total Comprehensive Income for the year ended 31st March, 2017:

Particulars

I Revenue From Operations 96,14,05,650 10,77,85,516 1,06,91,91,166

II Other Income A, C 77,10,944 26,41,013 1,03,51,957

III Total Income (I+II) 96,91,16,594 11,04,26,529 1,07,95,43,123

IV EXPENSES

Cost of materials consumed 72,41,38,529 - 72,41,38,529

Changes in inventories of finished goods, stock in trade and

work-in-progress (24,70,839) - (24,70,839)

Excise Duty - 10,77,85,516 10,77,85,516

Employee benefits expense D 6,77,16,338 (14,08,930) 6,63,07,408

Finance costs 1,85,15,994 - 1,85,15,994

Depreciation and amortization expense 1,78,57,267 - 1,78,57,267

Other expenses B 11,44,90,961 2,53,496 11,47,44,457

Total expenses (IV) 94,02,48,249 10,66,30,082 1,04,68,78,331

V Profit/(loss) before tax (III-IV) 2,88,68,345 37,96,447 3,26,64,792

V Tax expense:

VI (1) Current tax 89,33,000 - 89,33,000

(2) Deferred tax E 1,99,569 4,05,887 6,05,456

(3) Tax in respect of Earlier Years 60,791 - 60,791

91,93,360 4,05,887 95,99,247

IX Profit for the year (V-VI) 1,96,74,985 33,90,560 2,30,65,545

X Other Comprehensive Income

XI (i) Items that will not be reclassified to profit or loss

XII - Remeasurement of Defined benefit plans D - (14,08,930) (14,08,930)

(ii) Income tax relating to items that will not be

reclassified to profit or loss -

XIII - Remeasurement of Defined benefit plans - (4,65,835) (4,65,835)

XIV Total comprehensive income for the year (VII+VIII) 1,96,74,985 15,15,795 2,11,90,780

PreviousGAAP

Effects oftransitionto Ind AS

Amountas per IndAS SOP&L

SrNo

Notes

Reconciliation of Total Comprehensive Income:


Net Profit as per Previous GAAP 1,96,74,985

(i) Fair valuation of financial guarantee A 1,02,158

(ii) Actuarial (gain)/loss on employee defined benefit plans recognized in

Other Comprehensive Income D 14,08,930

(iii) Loss allowance of trade receivables as per expected credit loss model B (2,53,496)

(iv) Interest on loan to subsidiary C 25,38,855

(v) Deferred tax impact E (4,05,887)

Net profit after tax as per Ind AS 2,30,65,545

Other Comprehensive Income (net of taxes) (18,74,765)

Total Comprehensive income as per Ind AS 2,11,90,780

Note

Ecoplast Limited

78

(iv) Reconciliation of Total Equity as at 1st April, 2016 and as at 31st March, 2017:

Particulars NoteAs at


1st April, 2016

Equity as per Previous GAAP 23,96,94,006 22,00,19,020

(i) Fair valuation of financial guarantee A 2,04,316 1,02,158

(ii) Loss allowance of trade receivables as per expected credit loss model B (2,54,288) (792)

(iii) Interest on loan to subsidiary C 25,38,855 -

(iv) Deferred tax impact E (8,37,683) 34,039

Total Impact 16,51,200 1,35,405

Total Equity as per Ind AS 24,13,45,206 22,01,54,424

(v) Adjustments to the Statement of Cash Flows as at 31st March, 2017

The Ind AS adjustments are non cash adjustments. Consequently, Ind AS adoption has no impact on the net cash flow for the

year ended 31st March, 2017 as compared with the previous GAAP

Notes to reconciliations:-

A Financial Guarantee

Under previous GAAP, financial guarantee obligation given to subsidiary was only disclosed and not recognised

Under Ind AS, the company recognises the same as income and obligation

B Trade receivables

"Under previous GAAP, the Company had recognized provision on trade receivables based on the expectation of the

Company.Under Ind AS the Company provides loss allowance on receivables based on the Expected Credit Loss (ECL)

model which is measured following the ""simplified approach"" at an amount equal to the lifetime ECL at each reporting date."



Carrying value of Allowance for doubtful trade receivables using ECL model 792

Increase in the provision during the year 2,53,496 792

C Interest free loan to subsidiary

Under previous GAAP, there was no treatment of interest received on interest free loan given to subsidiary company

Under Ind AS, loan given to subsidiary has been fair valued and interest is recognised on EIR basis

D Remeasurement of defined benefit liabilities

"Under previous GAAP, actuarial gains and losses were recognized in profit or loss.Under Ind AS, the actuarial gains and

losses form part of remeasurement of the net defined benefit liability/asset which is recognized in other comprehensive

income. Consequently, the tax effect of the same has also been recognized in other comprehensive income under Ind AS

instead of profit or loss."


Actuarial gains/(loss) (14,08,930)

Tax effect thereon (4,65,835)


79

E Deferred Tax

"Under previous GAAP, deferred tax accounting was done using the income statement approach, which focuses on

differences between taxable profits and accounting profits for the period. Under Ind AS, accounting of deferred taxes is done

using the Balance sheet approach, which focuses on temporary differences between the carrying amount of an asset or

liability in the balance sheet and its tax base.”

For detailed working refer note 13 in the financial statement

F Other Comprehensive Income

"Under previous GAAP, there was no concept of other comprehensive income. Under Ind AS specified items of income,

expense, gains or losses are required to be presented in other comprehensive income. “

26 Earnings per share (EPS)

Basic EPS amounts are calculated by dividing the profit for the year attributable to equity holders of the Company by the

weighted average number of Equity shares outstanding during the year.

Diluted EPS amounts are calculated by dividing the profit attributable to equity holders of the Company by the weighted

average number of Equity shares outstanding during the year.


Profit attributable to equity holders of the company for basic and diluted

earnings per share 2,97,37,815 2,30,65,545


(i) Profit attributable to Equity holders of Company


Number of issued equity shares 30,00,000 30,00,000

Nominal Value per share 10 10

Weighted average number of shares at 31st March for basic and diluted

earnings per share 30,00,000 30,00,000

Basic and Diluted earnings per share (in Rs) 9.91 7.69


(ii) Weighted average number of ordinary shares


Current tax expense

Current year 1,67,57,000 89,33,000

Short/(Excess) provision of earlier years - 60,791

Deferred tax expense

Origination and reversal of temporary differences 4,73,288 6,05,456

Tax expense recognised in the income statement 1,72,30,288 95,99,247


27 Tax Expense

(a) Amounts recognised in profit and loss

Ecoplast Limited

80


Items that will not be reclassified to profit or loss

Remeasurements of the defined benefit plans 2,60,248 86,046 3,46,294 (14,08,930) (4,65,835) (18,74,765)

2,60,248.00 86,045.80 3,46,293.80 (14,08,930) (4,65,835) (18,74,765)


(b) Amounts recognised in other comprehensive income

Before TaxTax

(expense) Net of Tax Before TaxTax

(expense) Net of Tax


Profit before tax 4,69,68,103 3,26,64,792

Tax using the Company’s domestic tax rate 33.06% 1,55,27,655 33.06% 1,07,99,960

Tax effect of:

Expenses not deductible for tax purposes 2.61% 12,27,929 -5.72% (18,67,025)

Tax due to change in tax rate

Others 1.01% 4,74,704 2.04% 6,66,311

Effective income tax rate 36.69% 1,72,30,288 29.39% 95,99,246


(c) Reconciliation of effective tax rate

Amounts% Amounts%

(d) Movement in deferred tax

Particulars

As at 31st March, 2017


On difference between book balance and tax

balance of fixed assets 1,31,18,441 (10,77,512) 1,20,40,928 1,20,40,928

Loan to subsidiary 8,39,421 8,75,150 17,14,572 17,14,572

Financial Guarantee 243 (67) 176 176

Provision for compensated absences, gratuity

and other employee benefits (29,33,812) 5,15,191 (86,046) (25,04,666) 25,04,666

Provision for doubtful debts / advances (3,46,026) 1,60,526 (1,85,500) 1,85,500

Provision for diminution in the value of investments (15,86,049) - (15,86,049) 15,86,049

Loan to subsidiary - - - -

Financial Guarantee (33,777) - (33,777) 33,777

Tax assets (Liabilities) 90,58,442 4,73,288 (86,046) 94,45,684 43,09,992 1,37,55,676

Reversal of Opening DTL - - -

Tax assets (Liabilities) (Net) 90,58,442 4,73,288 (86,046) 94,45,684 43,09,992 1,37,55,676

Net balanceApril 1, 2016


Recognizedin profitor loss

Recognizedin OCI

Net Deferredtax asset

Deferredtax liability


81

Particulars

As at 1st April, 2016




Recognizedin OCI




On difference between book balance and

tax balance of fixed assets 1,22,70,809 8,47,632 - 1,31,18,441 - 1,31,18,441

Loan to subsidiary - 8,39,421 - 8,39,421 - 8,39,421

Financial Guarantee - 243 - 243 - 243

Provision for compensated absences, gratuity

and other employee benefits (23,68,556) (10,31,090) 4,65,835 (29,33,812) 29,33,812 -

Provision for doubtful debts / advances (2,95,275) (50,750) (3,46,026) 3,46,026 -

Provision for diminution in the value of investments (15,86,049) - (15,86,049) 15,86,049 -

Loan to subsidiary - - - - -

Financial Guarantee (33,777) - (33,777) 33,777 -

Tax assets (Liabilities) 79,87,152 6,05,456 4,65,835 90,58,442 48,99,663 1,39,58,105

Reversal of Opening DTL - - - - - -

Tax assets (Liabilities) (Net) 79,87,152 6,05,456 4,65,835 90,58,442 48,99,663 1,39,58,105

28 Financial instruments

A. Capital Management:

"The Company’s policy is to maintain a strong capital base so as to ensure that the Company is able to continue as going

concern to sustain future development of the business. The capital structure of the Company is based on management’s

judgement of its strategic and day-to-day needs with a focus on total equity so as to maintain investor, creditors and market

conditions.”

Its guiding principles:

i) Maintenance of financial strength to ensure the highest ratings;

ii) Ensure financial flexibility and diversify sources at financing;

iii) Manage Company exposure in forex to mitigate risks to earnings;

iv) Leverage optimally in order to maximum shareholders returns while maintaining strength and flexibility of the balance sheet.

The policy is also adjusted based on underlying macro-economic factors affecting business environment, financial and market

conditions.

The Company monitors capital on the basis of the following debt equity ratio:




Borrowings 1,87,06,045 3,05,72,815 2,23,61,018

Less: Cash and bank balances 15,31,176 11,69,915 10,75,681

Net debt 1,71,74,869 2,94,02,900 2,12,85,337

Total equity 26,70,96,439 24,13,45,206 22,01,54,424

Net debt to equity ratio 6.43% 12.18% 9.67%

Ecoplast Limited

82

B Fair value measurement hierarchy:

Particulars

As at 31st March, 2018 As at 1st April, 2016

Financial assets

At FVTPL - - - - - - - - - - -

At FVTOCI - - - - - - - - - - -

At Amortized cost

Trade Receivables 16,59,10,607 - - - 19,25,31,233 - - - 16,81,62,546 - - -

Cash and cash equivalents 15,31,176 - - - 11,69,915 - - - 10,75,681 - - -

Bank balances other

than above 27,13,904 - - - 32,96,658 - - - 28,19,086 - - -

Loans 18,45,970 - - - 3,42,23,233 - - - 2,89,83,775 - - -

Other financial assets 8,50,242 - - - 19,40,918 - - - 13,36,643 - - -

Financial liabilities

At FVTPL - - - - - - - - - - -

At Amortized cost

Borrowings 9,28,22,990 - - - 12,88,39,390 - - - 9,49,15,779 - - -

Trade payables 8,51,47,897 - - - 9,50,20,550 - - - 8,24,12,848 - - -

Other financial liabilities 1,29,13,683 - - - 1,28,92,976 - - - 90,33,548 - - -


CarryingAmount

Level of input used in

Level 1 Level 2 Level 3

CarryingAmount



CarryingAmount



The fair values of the financial assets and liabilities are defined as the price that would be received to sell an asset or paid to

transfer a liability in an orderly transaction between market participants at the measurement date. Methods and assumptions

used to estimate the fair values are consistent with those used for the year ended 31st March, 2017.

The financial instruments are categorized into three levels based on the inputs used to arrive at fair value measurements as

described below:

i) Level 1: Level 1 hierarchy includes financial instruments measured using quoted prices.

ii) 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 entity-specific estimates. If all significant

inputs required to fair value an instrument are observable, the instrument is included in level 2. In the case of Derivative

contracts, the Company has valued the same using the forward exchange rate as at the reporting date.

iii) Level 3: If one or more of the significant inputs is not based on observable market data, the instrument is included in level 3.

C Calculation of fair values:

Financial assets and liabilities measured at fair value as at Balance Sheet date:

Other financial assets and liabilities:-

- Cash and cash equivalents , trade receivables, other financial assets , trade payables, and other financial liabilities have fair

values that approximate to their carrying amounts due to their short-term nature.

- Loans have fair values that approximate to their carrying amounts as it is based on the net present value of the anticipated

future cash flows using rates currently available for debt on similar terms, credit risk and remaining maturities.


83

29 Financial risk management

Risk management framework

The Company’s financial risk management is an integral part of how to plan and execute its business strategies. The Company’s business activities are exposed to a variety of financial risks, namely liquidity risk, market risks, commodity risk and credit risk. The Company’s senior management has the overall responsibility for establishing and governing the Company’s risk management framework. The Company’s risk management policies are established to identify and analyze the risks faced by the Company, to set and monitor appropriate risk limits and controls, periodically review the changes in market conditions and reflect the changes in the policy accordingly. The key risks and mitigating actions are also placed before the Audit Committee of the Company.

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

A) Credit risk;

B) Liquidity risk;

C) Market risk; and

D) Interest rate risk

E) Commodity Risk

A Credit risk

Credit risk is the risk of financial loss to the Company if a customer or counter-party fails to meet its contractual obligations.

Trade and other receivables

The Company’s exposure to credit risk is influenced mainly by the individual characteristics of each customer. The demographics of the customer and including the default risk of the industry, also has an influence on credit risk assessment. Credit risk is managed through credit approvals, establishing credit limits and continuously monitoring the creditworthiness of customers to which the Company grants credit terms in the normal course of business.

Other than trade and other receivables, the Company has no other financial assets that are past due but not impaired.

"The Company uses an allowance matrix to measure the expected credit losses of trade receivables. The loss rates are computed using a 'roll rate' method based on the probability of receivable progressing through successive stages of delinquency to write off. “

The following table provides information about the exposure to credit risk and ECLs for trade receivables:




Not due 11,38,53,779 14,91,61,988 13,14,44,258

1 - 180 Days 5,17,45,133 3,91,85,442 3,67,15,911

181-360 Days 3,22,442 42,76,173 -

361-500 Days 7,168 1,61,919 3,169

More Than 500 days 5,43,137 7,92,277 8,92,277

Allowance for doubtful trade receivables

(Expected credit loss allowance) (5,61,051) (10,44,981) (8,91,485)

Total 16,59,10,608 19,25,32,818 16,81,64,130

Ageing of Trade receivables



Opening provision 10,46,565 8,93,069

Add: Additional provision made 1,53,496

Provision Reverse (4,85,514)

Closing provision 5,61,051 10,46,565

Movement in provisions of doubtful debts

Ecoplast Limited

84

Cash and cash equivalents

The Company held cash and cash equivalents of Rs. 15,31,177 as at 31st March, 2018 (31st March, 2017: Rs. Rs.11,69,915, 1st April, 2016 : Rs.10,75,681). The cash and cash equivalents are held with banks.

B Liquidity risk

Liquidity risk is defined as the risk that the Company will not be able to settle or meet its obligations on time, or at a reasonable price.

Ultimate responsibility for liquidity risk management rests with the Board of Directors, which has built an appropriate liquidity risk management framework for the management of the Company's short, medium and long term funding and liquidity management requirements. The Company manages liquidity risk by maintaining adequate reserves, banking facilities and reserve borrowing facilities , by continuously monitoring forecast and actual cash flows and matching the maturity profiles of financial assets and liabilities.

Exposure to liquidity risk

The following table shows the maturity analysis of the Company's financial liabilities based on contractually agreed undiscounted cash flows as at the Balance Sheet date:

ParticularsAs at 1st April, 2016

Non-derivative financial liabilities

Borrowings 9,49,15,779 7,25,54,762 2,23,61,018

Trade and other payables 8,24,12,848 8,24,12,848 - -

Other financial liabilities 90,33,548 90,33,548 - -

Derivative financial liabilities - - - -

18,63,62,175 16,40,01,158 2,23,61,018 0

Carrying amount

Withinone year

Carryingamount

More thanfive years

One to fiveyears



Borrowings 12,88,39,390 9,82,66,575 3,05,72,815


Other financial liabilities 1,28,92,976 1,28,92,976 - -

Derivative financial liabilities - - - -

23,67,52,916 20,61,80,101 3,05,72,815 -

Carrying amount

Withinone year

Carryingamount

More thanfive years

One to fiveyears



Borrowings 9,28,22,990 7,41,16,945 1,87,06,045



Derivative financial liabilities -

19,08,84,570 17,21,78,525 1,87,06,045 -

Carrying amount

Withinone year

Carryingamount

More thanfive years

One to fiveyears


85

Guarantees issued by the Company on behalf of subsidiary are with respect to borrowings raised by the respective entity. These amounts will be payable on default by the concerned entity. As of the reporting date, the subsidiary has not defaulted and hence, the Company does not have any present obligation to third parties in relation to such guarantees.

C Market risk

"Market risk is the risk that changes in market prices – such as foreign exchange rates, interest rates and equity prices – will affect the Company’s income or the value of its holdings of financial instruments. The objective of market risk management is to manage and control market risk exposures within acceptable parameters, while optimising the return."

The Company operates internationally and portion of the business is transacted in several currencies. Consequently the Company is exposed to foreign exchange risk through its sales and services in overseas and purchases from overseas suppliers in various foreign currencies. Exports of the company are significantly lower in comparison to its imports.

The Company holds derivative financial instruments such as foreign exchange forward contract to mitigate the risk of changes in exchange rates on foreign currency exposure. The exchange rate between rupee and foreign currency has changed substantially in recent years and may fluctuate substantially in future. Consequently, the results of the Company's operation are adversely affected as the rupee appreciates/ depreciates against these currencies.

The carrying amounts of the Company’s foreign currency dominated monetary assets and monetary liabilities at the end of the reporting period are as follows:

Particulars Liabilities (INR)

In US Dollars (USD) 2,85,53,241 3,23,90,965 3,08,35,000 - 1,41,92,252 1,00,47,000

In Euro (EUR) - 12,85,931 21,34,324 - - -

As at31st March,

2018

Assets (INR)

As at31st March,

2017

As at1st April,

2016

As at31st March,

2018

As at31st March,

2017

As at1st April,

2016

Particulars Liabilities (Foreign currency)

In US Dollars (USD) 4,40,362 4,78,683 4,86,000 - 2,18,024 1,53,000

In Euro (EUR) - 18,036 28,176 - - -

As at31st March,

2018

Assets (Foreign currency)

As at31st March,

2017

As at1st April,

2016

As at31st March,

2018

As at31st March,

2017

As at1st April,

2016

Foreign currency sensitivity analysis

The Company is mainly exposed to the currency : USD, EUR

The following table details the Company’s sensitivity to a 5% increase and decrease in the Rupee against the relevant foreign currencies. 5% is the sensitivity rate used when reporting foreign currency risk internally to key management personnel and represents management’s assessment of the reasonably possible change in foreign exchange rates. This is mainly attributable to the net exposure outstanding on receivables or payables in the Company at the end of the reporting period. The sensitivity analysis includes only outstanding foreign currency denominated monetary items and adjusts their translation at the period end for a 5% charge in foreign currency rate. A positive number below indicates an increase in the profit or equity where the Rupee strengthens 5% against the relevant currency. For a 5% weakening of the Rupee against the relevant currency, there would be a comparable impact on the profit or equity, and the balances below would be negative.

Impact on profit or loss and total equity




Increase in exchange rate by 5% (14,27,662) (9,09,936) (10,39,400)

Decrease in exchange rate by 5% 14,27,662 9,09,936 10,39,400

USD impact




Increase in exchange rate by 5% - (64,297) (1,06,716)

Decrease in exchange rate by 5% - 64,297 1,06,716

Euro impact

Ecoplast Limited

86

The Company, in accordance with its risk management policies and procedures, enters into foreign currency forward contracts to manage its exposure in foreign exchange rate variations. The counter party is generally a bank. These contracts are for a period between one day and one year. The above sensitivity does not include the impact of foreign currency forward contracts which largely mitigate the risk.

D Interest rate risk

There is no material interest risk relating to the Company’s financial liabilities which are detailed in note 11 and 14.1

E Commodity Risk

Principal Raw Material for Company’s products is variety of plastic polymers which are Derivatives of Crude Oil. Company sources its raw material requirement primarily from US and Europe. Domestic market prices are also generally remains in sync with international market price scenario.

Volatility in Crude Oil prices, Currency fluctuation of Rupee vis-à-vis other prominent currencies coupled with demand–supply scenario in the world market affect the effective price and availability of polymers for the Company. Company effectively manages with availability of material as well as price volatility through:

1. Widening its sourcing base

2. Appropriate contracts and commitments

3. Well planned procurement & inventory strategy

30 Employee Benefits

[A] Defined contribution plans:

The Company makes Provident Fund and Superannuation Fund contributions to defined contribution plans for qualifying employees. Under the Schemes, the Company is required to contribute a specified percentage of the payroll costs to fund the benefits. The Company recognised Rs.33,67,842 (As at 31st March, 2017: Rs.31,72,950 ; As at 1st April, 2016: Rs.29,37,815) for Provident Fund contributions and Rs.24,10,166 (As at 31st March, 2017: Rs. 22,57,061; As at 1st April, 2016: Rs.20,24,683) for Superannuation Fund contributions in the Statement of Profit and Loss. The contributions payable to these plans by the Company are at rates specified in the rules of the schemes.

[B] Defined benefit plan:

The Employees' gratuity fund scheme managed by LIC of India . is a defined benefit plan. The present value of obligation for gratuity and leave encashment is determined on the basis of Actuarial Valuation Report made at the year end.

i) On normal retirement / early retirement / withdrawal / resignation: As per the provisions of Payment of Gratuity Act, 1972 with vesting period of 5 years of service.

ii) On death in service: As per the provisions of Payment of Gratuity Act, 1972 without any vesting period.

These plans typically expose the Company to acturial risks such as : investment risk , interest risk , longevity risk and salary risk.

Investment risk:

The present value of the defined benefit plan liability is calculated using a discount rate which is determined by reference to market yields at the end of the reporting period on government bonds. If the return on plan asset is below this rate, it will create plan deficit.

Interest risk:

A decrease in the bond interest rate will increase the plan liability; however, this will be partially off set by an increase in the plan assets.

Longevity risk:

The present value of the defined benefit plan liability is calculated by reference to the best estimate of the mortality of plan participants both during and after their employment. An increase in the life expectancy of the plan participants will increase the plan’s liability.

Salary risk:

The present value of the defined benefit plan liability is calculated by reference to the future salaries of plan participants. As such, an increase in the salary of the plan participants will increase the plan’s liability.

The following table sets out the status of the gratuity plan and the amounts recognized in the Company's financial statements as at 31st March, 2018.


87

a) Changes in present value of obligations (PVO)31st March,2018 31st March,2017 1st April, 2016

Present Value of Benefit Obligation at the Beginning of the Period 1,69,96,022 1,37,84,401 1,11,03,052

Interest cost 12,35,611 11,15,158 8,82,693

Past Service Cost 5,38,615

Current service cost 7,77,838 6,61,406 4,72,661

Benefits paid from the fund (25,08,094) - (20,308)

Actuarial (Gains)/Losses on Obligations - Due to Change

in Financial Assumptions (10,04,719) 30,79,762 (1,31,859)

Actuarial (Gains)/Losses on Obligations - Due to Experience 8,18,783 (16,44,705) 14,78,162

PVO at the end of the year 1,68,54,056 1,69,96,022 1,37,84,401

Gratuity - Funded

b) Fair value of plan assets:31st March,2018 31st March,2017 1st April, 2016

Fair value of plan assets at the beginning of the year 1,55,72,629 1,32,03,293 1,06,45,001

Adjustment to opening fair value of plan assets - - -

Return on plan assets excl. interest income 74,312 26,127 58,547

Interest income 11,32,130 10,68,146 8,46,278

Contributions by the employer 16,55,931 12,75,063 16,73,775


Fair value of plan assets at the end of the year 1,59,26,908 1,55,72,629 1,32,03,293

Gratuity - Funded

c) Amount to be recognized in the balance sheet:31st March,2018 31st March,2017 1st April, 2016

PVO at the end of period 1,68,54,056 1,69,96,022 1,37,84,401

Fair value of plan assets at end of the period 1,59,26,908 1,55,72,629 1,32,03,293

Funded status (Surplus/(Deficit)) (9,27,148) (14,23,393) (5,81,108)

Net (Liability)/Asset Recognized in the Balance Sheet (9,27,148) (14,23,393) (5,81,108)

Gratuity - Funded

d) Expense recognized in the statement of profit or loss:31st March,2018 31st March,2017 1st April, 2016


Net interest Cost 1,03,481 47,012 36,415


Expense recognized in the statement of profit or loss 14,19,934 7,08,418 5,09,076

Gratuity - Funded

e) Other comprehensive income (OCI):31st March,2018 31st March,2017 1st April, 2016

Actuarial (Gain)/Loss on Obligation for the period (1,85,936) 14,35,057 13,46,303

Return on plan assets excluding Interest Income (74,312) (26,127) (58,547)

Net (Income)/Expense For the Period Recognized in OCI (2,60,248) 14,08,930 12,87,756

Gratuity - Funded

f) Actual return on the plan assets:31st March,2018 31st March,2017 1st April, 2016

12,06,442 10,94,273 9,04,825

Gratuity - Funded

Ecoplast Limited

88

g) Category of Assets31st March,2018 31st March,2017 1st April, 2016

Insurance Fund 1,59,26,908 1,55,72,629 1,32,03,293

Gratuity - Funded

h) Assumption:31st March,2018 31st March,2017 1st April, 2016

Expected Rate on Plan Assets 7.85% 7.27% 8.09%

Rate of Discounting 7.85% 7.27% 8.09%

Rate of Salary Increase 8.00% 8.00% 8.00%

Rate of Employee Turnover 2.00% 2.00% 2.00%

Mortality Rate during employment IALM(2006-08) IALM(2006-08) IALM(2006-08)

Mortality Rate After employment N.A N.A N.A

Gratuity - Funded

Assumption:

1. Analysis of Defined Benefit Obligation

The number of members under the scheme have increased by 4.95%. Similarly the total salary increased by 7.69% during the accounting period. The resultant liability at the end of the period over the beginning of the period has decreased by 34.86%.

2. Expected rate of return basis

The scheme funds are invested with Trustee of the Company which is based on rate of return declared by fund managers.

3. Description of Plan Assets

100 % of the Plan Asset is entrusted to trustees of the Company under their Group Gratuity Scheme.

Year PVO Payouts31st March,2018

PVO Payouts31st March,2017

1st Following Year 14,00,101 45,27,895

2nd Following Year 4,76,950 5,30,122

3rd Following Year 22,96,740 5,64,533

4th Following Year 4,62,223 19,32,112


Sum of years 6 to 10 58,89,247 60,83,911

Sum of years 11 and above 3,54,91,971 1,96,95,196

j) Sensitivity analysis

Significant actuarial assumptions for the determination of the defined benefit obligation are discount rate and expected salary increase. The sensitivity analysis below have been determined based on reasonably possible changes of the respective assumptions occurring at the end of the reporting period, while holding all other assumptions constant.

Particulars 31st March,2018 31st March,2017

Projected Benefit Obligation on Current Assumptions 1,68,54,056 1,69,96,022

Delta Effect of +1% Change in Rate of Discounting (15,22,245) (11,03,302)

Delta Effect of -1% Change in Rate of Discounting 17,96,415 12,79,138

Delta Effect of +1% Change in Rate of Salary Increase 14,59,688 12,57,276

Delta Effect of -1% Change in Rate of Salary Increase (13,13,941) (11,05,891)

Delta Effect of +1% Change in Rate of Employee Turnover 67,466 (67,948)

Delta Effect of -1% Change in Rate of Employee Turnover (74,879) 75,959


89

i) Expected Payout:

Although the analysis does not take account of the full distribution of cash flows expected under the plan, it does provide an approximation of the sensitivity of the assumptions shown.

Based on the actuarial valuation obtained in this respect, the following table sets out the status of the gratuity plan and the amounts recognised in the Company’s financial statements as at balance sheet date:




Total employee benefit liabilities

Other current liabilities 15 - (14,23,393) (5,81,108)

Other current assets 8 (9,27,148) - -

Note

k) General Assumptions

(i) Leave Policy:

Leave balance as at the valuation date and each subsequent year following the valuation date to the extent not availed by the employee accumulated up to 31 March 2018 is available for encashment on separation from the company upto a maximum of 90 days

(ii) The assumption of future salary increases, considered in actuarial valuations, takes account of inflation, seniority, promotion, supply and demand and other relevant factors.

(iii) Liability on account of long term absences has been actuarially valued as per Projected Unit Credit Method.

(iv) Short term compensated absences have been provided on actual basis.

31 Related Party Transactions

Disclosure of transactions with Related Parties, as required by Ind AS 24 "Relate Party Disclosures" is given below :

(I) Name of the related party and nature of relationship: -

Particulars

A) Subsidiary Company

Synergy Films Pvt.Ltd.

Sales of Goods 3,06,53,482 2,41,44,463

Purchase of Goods 17,21,250 33,15,780

Balance Receivable - 40,30,290

Balance Payable - -

Inter Corporate Deposit Paid Including Interest 3,51,00,000 3,72,18,771

Collaterals Gurantee to Bank 4,06,50,497 4,05,69,598

B) Key Managerial Personnel (KMP)

Mr.J.B.Desai : Managing Director

Remuneration Paid 75,62,796 68,00,796

Dividend Paid 1,23,650 -

Sale of Used Car 2,95,000 -

Mr. P. P. Kharas : Chairman

Sitting Fees Paid 1,40,000 1,60,000

Commission Paid on Profit 58,077 61,861

Dividend Paid 98,376 -

Mr. B. B. Desai : Non Executive Director

Sitting Fees Paid - -

Commission Paid on Profit - 61,861

Dividend Paid - -

2017-18 2016-17Sr No

Ecoplast Limited

90

Particulars

Mrs. C. N. Patel : Non Executive Director

Sitting Fees Paid 80,000 1,20,000


Dividend Paid 4,60,693 -

Mr. B. M. Desai : Non Executive/Independent Director



Dividend Paid 120 -

Mr. M. B. Desai : Non Executive/Independent Director



Dividend Paid 11,580 -

Mr. D. T.Desai : Non Executive/Independent Director


Commission Paid on Profit - -

Dividend Paid - -

Mr. J. A. Moos : Non Executive/Independent Director



Dividend Paid 600 -

C) Others :

Mr. M. D. Desai : Chief Finance Officer

Remunearation Paid 26,31,348 24,35,376

Mr. Antony Alapat : Company Secrectory


D) Company in which KMP / Relatives of KMP can

exercise significant influence

Propack Industries ( Prop.Kunal Plastics Pvt.Ltd.)

Sales of Goods 72,33,652 37,78,481


Render Services 1,85,379 -

Receiving Services 10,79,090 11,06,894

Balance Receivable 17,659 -

Balance Payable 5,22,911 9,47,908

2017-18 2016-17Sr No

*As the liabilities for defined benefit plans are provided on actuarial basis for the Group as a whole, the amounts pertaining to Key

Management Personnel are not included.

Footnotes:

(i) All Related party transactions entered during the year were on ordinary course of business and are on arm's length basis.

(ii) Key Managerial Personnel are entitled to post-employment benefits and other long term employee benefits recognised as per

Ind AS 19 - ‘Employee Benefits’ in the financial statements. As these employee benefits are lump sum amounts provided on

the basis of actuarial valuation, the same is not included above.


91

35 (i) Capital Commitments




On account of Capital Commitments ( Net of advances) 64,53,142 - 1,38,53,610

TOTAL 64,53,142 - 1,38,53,610

Year ended

Estimated amount of contracts remaining to be executed on capital account and not provided for Rs 1,09,17,466 /- (March 2017 : ̀ NIL /- , March 2016 :` 1,77,15,110/-).

(ii) Contingent liabilities




The Company has given irrevocable and unconditional

Corporate Guarantee/ Collateral Securities to Bank of

Baroda-Bulsar on behalf of Synergy Films Pvt. Ltd.,

a Subsidiary company in which the company is holding 100%

of the equity shares as on 31/03/2018 as a collateral security

for Working capital. 4,06,50,497 4,05,69,598 4,08,63,282

On account of Income Tax / Sales Tax and Service Tax

demand under contest 12,53,988 12,03,484 10,99,269

TOTAL 12,53,988 12,03,484 10,99,269

Year ended

33 Segment information :

The Company's sole business segment is Plastic Films and all activities are incidental to this sole business segment. Given

this fact and that the Company services its domestic and export markets from India only, the financial statements reflect the

information required by Ind AS 108 ‘Operating Segments’ for the sole business segment of Plastic Films. The whole of the

business assets are situated in India.

34 Disclosure As per Regulation 34(3) and 53(f) of the SEBI (Listing obligation and Disclosure requirements) Regulations,2015

Name of Subsidiary Company : Synergy Films Private Limited

Amount Outstanding Maximum Balance outstandingduring the year end

As at31st March,

2018

As at31st March,

2017

As at1st April,

2016

As at31st March,

2018

As at31st March,

2017

As at1st April,

2016

Investment by Subsidiary inShares of the Company

As at31st March,

2018

As at31st March,

2017

As at1st April,

2016

3,72,18,771 3,72,18,771 3,72,18,771 Nil Nil Nil3,51,00,000 3,72,18,771 3,72,18,771

35 The Company has imported Plant and Machineries under Export Promotion Capital Goods Scheme (EPCG) without payment

of Custom Duty. In the event of non-fulfilment of export obligations as specified, Company may be held liable to pay custom

duty of Rs.32.21 lacs (Previous year Rs.65.65 lacs) in terms of the said Scheme. As on 31st March 2018 Company is not in any

default under the Scheme.

Ecoplast Limited

92

36 The Company prior to it being listed had issued Bonus shares on 29th June, 1994 for Rs. 10 Million (10,00,000 equity shares of

Rs. 10/- each) by capitalising part of its revaluation reserve. Accordingly, the paid up equity share capital of the company

stands increased by Rs. 10 Million and the revaluation reserve stands reduced by that amount. The issue of bonus shares as

aforesaid is contrary to the circular issued by the Department of Company Affairs issued in September, 1994 and the

recommendations of the Institute of Chartered Accountants of India issued in November, 1994. However, the Hon'ble

Supreme Court in the recent decision in the case of Bhagwati Developers Vs Peerless General Finance & Investment Co. &

others (2005) Comp LJ 377 (SC) has held that there is no specific bar under the Companies Act for issue of Bonus Shares out

of Revaluation Reserve and that the Department's Communique was advisory in nature, without any mandatory effect. The

Management is therefore of the opinion that both according to the accounting principles and provisions of Company Law, the

Company was justified in capitalizing its Revaluation Reserve.

37 Leases

Operating lease:

The Company procures godown on lease under operating leases. These rentals recognized in the Statement of Profit and

Loss Account for the year is Rs.32,000 (31st March, 2017: Rs. Nil). The future minimum lease payments and payment profile of

non cancellable operating leases are as under:




Not later than one year - - -

Later than one year but not later than five years - - -

More than five years - - -

Total - - -




M. D. DESAIC.F.O.






38 Event occuring after Balance Sheet date:

The Board of Directors, at their meeting held on May 28, 2018, have proposed a dividend of Rs. 1.50 Per equity share for the

financial year ended March 31, 2018. The proposal is subject to the approval of shareholders at the ensuing Annual General

Meeting , and if approved, would result in a cash outflow of approximately Rs. 54,16,094/-, including Dividend Distribution Tax.

( Previous Year Rs.1.20 pre Equity Share resulting in to total Outgo of Rs. 43,32,874/- Including Dividend Distribution Tax)

39 Authorization of Financial Statements:

The Financial Statements were authorized for issue in accordance with a resolution of the Board of Directors in its meeting

held on 28th May, 2018.


93

Independent Auditor's Report

To The Members of

ECOPLAST LIMITED

Report on the Consolidated Financial Statements

We have audited the accompanying consolidated financial

statements of ECOPLAST LIMITED (the 'Holding Company')

and its subsidiary (the Holding Company and its subsidiary

together referred to as the 'Group'), which comprise the

Consolidated Balance Sheet as at 31 March 2018, the

Consolidated Statement of Profit and Loss (including Other

Comprehensive Income), the Consolidated Cash Flow

Statement and the Consolidated Statement of Changes in

Equity for the year then ended, and a summary of the

significant accounting policies and other explanatory

information (hereinafter referred to as "the consolidated

financial statements").

Management's Responsibility for the Consolidated

Financial Statements

The Holding Company's Board of Directors is responsible for

the preparation of these consolidated financial statements in

terms of the requirements of the Companies Act, 2013 (the

'Act') that give a true and fair view of the consolidated state of

affairs (the consolidated financial position), consolidated profit

or loss (consolidated financial performance), consolidated

cash flows and consolidated changes in equity of the group

company in accordance with the accounting principles

generally accepted in India, including the Indian Accounting

Standards ('Ind AS') specified under Section 133 of the Act.

The Holding Company's Board of Directors and the respective

Board of Directors / management of the subsidiary included in

the Group are responsible for the design, implementation and

maintenance of internal controls relevant to the preparation

and presentation of the financial statements that give a true

and fair view and are free from material misstatement,

whether due to fraud or error. Further, in terms of the

provisions of the Act, the respective Board of Directors /

management of the companies included in the Group covered

under the Act are responsible for maintenance of adequate

accounting records in accordance with the provisions of the

Act for safeguarding the assets and for preventing and

detecting frauds and other irregularities; selection and

application of appropriate accounting policies; making

judgments and estimates that are reasonable and prudent;

and design, implementation and maintenance of adequate

internal financial controls, that were operating effectively for

ensuring the accuracy and completeness of the accounting

records, relevant to the preparation and presentation of the

financial statements that give a true and fair view and are free

from material misstatement, whether due to fraud or error.

These financial statements have been used for the purpose of

preparation of the consolidated financial statements by the

Directors of the Holding Company, as aforesaid.


Our responsibility is to express an opinion on these

consolidated financial statements based on our audit.

While conducting the audit, we have taken into account the

provisions of the Act, the accounting and auditing standards

and matters which are required to be included in the audit

report under the provisions of the Act and the Rules made

thereunder.

We conducted our audit in accordance with the Standards on

Auditing specified under Section 143(10) of the Act. Those

Standards require that we comply with ethical requirements

and plan and perform the audit to obtain reasonable

assurance about whether these consolidated financial

statements are free from material misstatement.

An audit involves performing procedures to obtain audit

evidence about the amounts and the disclosures in the

consolidated financial statements. The procedures selected


of the risks of material misstatement of the consolidated

financial statements, whether due to fraud or error. In making

those risk assessments, the auditor considers internal

financial controls relevant to the Holding Company's

preparation of the consolidated financial statements that give

a true and fair view in order to design audit procedures that are

appropriate in the circumstances. An audit also includes

evaluating the appropriateness of the accounting policies

used and the reasonableness of the accounting estimates

Ecoplast Limited

94

made by the Holding Company's Board of Directors, as well as

evaluating the overall presentation of the consolidated

financial statements.

We believe that the audit evidence obtained by us and the

audit evidence obtained by the other auditors in terms of their

reports referred to in sub paragraph (a) of the Other Matters

paragraph below, is sufficient and appropriate to provide a

basis for our audit opinion on these consolidated financial

statements.

Opinion

In our opinion and to the best of our information and according

to the explanations given to us and based on the

consideration of the reports of the other auditors on separate

financial statements / consolidated financial statements and

on the other financial information of the subsidiary, the

aforesaid consolidated financial statements give the

information required by the Act in the manner so required and

give a true and fair view in conformity with the accounting

principles generally accepted in India, of the consolidated

state of affairs (consolidated financial position) of the Group,

as at 31 March 2018, and their consolidated profit

(Consolidated financial performance including Other

Comprehensive Income), their consolidated cash flows and

consolidated changes in equity for the year ended on that

date.

Other matters

a) We did not audit the financial statement of a subsidiary,

whose financial statements reflect total assets of Rs. 472

Lakhs and net assets of Rs. 145 Lakhs as at 31st March,

2018, total revenue of Rs. 1134 Lakhs and net cash flows

amounting to Rs. 80.15 Lakhs for the year ended on that

date, as considered in the consolidated financial

statements. The Consolidated financial statement also

include the Group's share of net profit of Rs. 71.57 Lakhs

for the year ended 31st March, 2018, as considered in the

consolidated financial statements, whose financial

statements have not been audited by us. These financial

statements have been audited by other auditors whose

reports have been furnished to us by the management and

our opinion on the consolidated financial statements, in so

far as it relates to the amounts and disclosures included in

respect of this subsidiary, and our report in terms of sub-

section (3) of Section 143 of the Act, in so far as it relates to

the aforesaid subsidiary, is based solely on the reports of

the other auditors.

Our opinion above on the consolidated financial

statements, and our report on other legal and regulatory

requirements below, are not modified in respect of the

above matters with respect to our reliance on the work

done by and the reports of the other auditors.

The audited consolidated financial statements for the year

ended 31 March 2017, was carried out and reported by

Akkad Mehta & Co., vide their unmodified audit report

dated 22nd May 2017, whose report has been furnished to

us by the management and which has been relied upon by

us for the purpose of our audit of the consolidated financial

statements. Our audit report is not qualified in respect of

this matter.

Report on other Legal and Regulatory Requirements

1. As required by Section 143(3) of the Act, based on our

audit and on the consideration of the reports of the other

auditors on separate financial statements and other

financial information of the subsidiary, as noted in the

"Other Matter" paragraph, we report, to the extent

applicable, that:

a) We have sought and obtained all the information and

explanations which to the best of our knowledge and belief

were necessary for the purpose of our audit of the

aforesaid consolidated financial statements;

b) In our opinion, proper books of account as required by law

relating to preparation of the aforesaid consolidated

financial statements have been kept so far as it appears

from our examination of those books and the reports of the

other auditors;

c) The consolidated financial statements dealt with by this

report are in agreement with the relevant books of account

maintained for the purpose of preparation of the

consolidated financial statements;


95

d) In our opinion, the aforesaid consolidated financial

statements comply with Ind AS specified under Section

133 of the Act;

e) On the basis of the written representations received from

the directors of the Holding Company as on 31st March,

2018 taken on record by the Board of Directors of the

Holding Company and the reports of the other statutory

auditors of its subsidiary company covered under the Act,

none of the directors of the Group company, covered

under the Act, are disqualified as on 31 March 2018 from

being appointed as a director in terms of Section 164(2) of

the Act;

f) With respect to the adequacy of the internal financial

controls over financial reporting of the Holding Company

and its subsidiary and the operating effectiveness of such

controls, refer to our separate Report in "Annexure-A";

and,

g) With respect to the other matters to be included in the

Auditor's Report in accordance with Rule 11 of the

Companies (Audit and Auditor's) Rules, 2014

(as amended), in our opinion and to the best of our

information and according to the explanations given to us

and based on the consideration of the report of the other

auditors on separate financial statements and on the other

financial information of the subsidiary as noted in the 'other

matter' paragraph:

I. The pending litigation as disclosed in notes to the

Consolidated Financial Statements would not impact

Financial Position of the Company.

II. The Company did not have any material foreseeable

losses on long-term contracts including derivatives

contracts.

III. There has been no delay in transferring amounts, required

to be transferred, to the Investor Education and Protection

Fund by the Holding Company and its subsidiary company

incorporated in India.

IV. The disclosure requirements relating to holdings as well as

dealings in specified bank notes were applicable for the

period from 8 November 2016 to 30 December 2016 which

are not relevant to these consolidated financial

statements. Hence, reporting under this clause is not

applicable.





Partner


Date :- 28th May, 2018

Place :- Mumbai.

Ecoplast Limited

96

Annexure A to the Independent Auditor's Report of even date to the members ofEcoplast Limited on the consolidated financial statements for the year ended 31 March 2018


Our responsibility is to express an opinion on the IFCoFR of

the Holding Company and its subsidiary company, as

aforesaid, based on our audit. We conducted our audit in

accordance with the Standards on Auditing issued by the ICAI

and deemed to be prescribed under Section 143(10) of the

Act, to the extent applicable to an audit of IFCoFR, and the

Guidance Note issued by the ICAI. Those Standards and the

Guidance Note require that we comply with ethical

requirements and plan and perform the audit to obtain

reasonable assurance about whether adequate IFCoFR were

established and maintained and if such controls operated

effectively in all material respects.

Our audit involves performing procedures to obtain audit

evidence about the adequacy of the internal financial controls

system over financial reporting and their operating

effectiveness. Our audit of internal financial controls over

financial reporting included obtaining an understanding of

internal financial controls over financial reporting, assessing

the risk that a material weakness exists, and testing and

evaluating the design and operating effectiveness of internal

control based on the assessed risk. The procedures selected


of the risks of material misstatement of the financial

statements, whether due to fraud or error.

We believe that the audit evidence we have obtained and the

audit evidence obtained by the other auditors in terms of their

reports referred to in the Other Matter paragraph below, is


opinion on the IFCoFR of the Holding Company and its

subsidiary company as aforesaid.

Independent Auditor's report on the Internal Financial

Controls under Clause (i) of sub-section 3 of Section 143

of the Companies Act, 2013 (the "Act")

In conjunction with our audit of the consolidated financial

statements of Ecoplast Limited (the 'Holding Company') and

its subsidiaries (the Holding Company and its subsidiary

together referred to as the 'Group') as at and for the year

ended 31 March 2018, we have audited the internal financial

controls over financial reporting ('IFCoFR') of the Holding

Company, its subsidiary company which are companies

covered under the Act, as at that date.

Management's Responsibility for the Internal Financial

Controls

The respective Board of Directors of the Holding Company, its

subsidiary company which are companies covered under the

Act, are responsible for establishing and maintaining internal

financial controls based on the internal control over financial

reporting criteria established by the Company considering the

essential components of internal control stated in the

Guidance Note on Audit of Internal Financial Controls Over

Financial Reporting (the 'Guidance Note') issued by the

Institute of Chartered Accountants of India (the 'ICAI'). These

responsibilities include the design, implementation and

maintenance of adequate internal financial controls that were

operating effectively for ensuring the orderly and efficient

conduct of the company's business, including adherence to

the company's policies, the safeguarding of its assets, the

prevention and detection of frauds and errors, the accuracy

and completeness of the accounting records, and the timely

preparation of reliable financial information, as required under

the Act.


97

Meaning of Internal Financial Controls over Financial

Reporting

A company's internal financial control over financial reporting

is a process designed to provide reasonable assurance

regarding the reliability of financial reporting and the

preparation of financial statements for external purposes in

accordance with generally accepted accounting principles. A

company's internal financial control over financial reporting

includes those policies and procedures that (1) pertain to the

maintenance of records that, in reasonable detail, accurately

and fairly reflect the transactions and dispositions of the

assets of the company; (2) provide reasonable assurance that

transactions are recorded as necessary to permit preparation

of financial statements in accordance with generally accepted

accounting principles, and that receipts and expenditures of

the company are being made only in accordance with

authorisations of management and directors of the company;

and (3) provide reasonable assurance regarding prevention

or timely detection of unauthorised acquisition, use, or

disposition of the company's assets that could have a material

effect on the financial statements.

Inherent Limitations of Internal Financial Controls over

Financial Reporting

Because of the inherent limitations of internal financial

controls over financial reporting, including the possibility of

collusion or improper management override of controls,

material misstatements due to error or fraud may occur and

not be detected. Also, projections of any evaluation of the

internal financial controls over financial reporting to future

periods are subject to the risk that the internal financial control

over financial reporting may become inadequate because of

changes in conditions, or that the degree of compliance with

the policies or procedures may deteriorate.

Opinion

In our opinion and based on the consideration of the reports of

the other auditors on IFCoFR of the subsidiary company, the

Holding Company and its subsidiary company which are

companies covered under the Act, have in all material

respects, adequate internal financial controls over financial

reporting and such controls were operating effectively as at 31

March 2018, based on the internal control over financial

reporting criteria established by the Holding Company, its

subsidiary company as aforesaid, considering the essential

components of internal control stated in the Guidance Note on

Audit of Internal Financial Controls over Financial Reporting


Other Matters

Our aforesaid reports under Section 143(3)(i) of the Act on the

adequacy and operating effectiveness of the internal financial

controls over financial reporting insofar as it relates to one

subsidiary company, which is a company incorporated in

India, is based on the corresponding reports of the auditors of

subsidiary company.





Partner


Date :- 28th May, 2018

Place :- Mumbai.

Ecoplast Limited

98

CONSOLIDATED BALANCE SHEET AS ON 31ST MARCH 2018

Note No As at 31.03.2017 As at 01.04.2016As at 31.03.2018

ASSETSNON CURRENT ASSETS(a) Property, Plant and Equipment 2 13,73,24,709 14,47,38,171 12,62,33,524(b) Capital work-in-progress 2 - 38,47,366 6,40,959(c) Goodwill on consolidation 3 1,13,94,805 1,13,94,805 1,13,94,805(d) Financial Assets (i) Loans 4 92,96,031 85,87,120 60,16,502(e) Other non-current assets 5 85,22,939 38,77,645 53,32,910

16,65,38,484 17,24,45,107 14,96,18,700Current assets(a) Inventories 6 12,38,00,584 12,34,54,703 10,56,63,451(b) Financial Assets

(i) Trade Receivables 7.1 17,32,72,290 20,38,04,323 17,35,15,626(ii) Cash and cash equivalents 7.2 1,12,23,653 28,31,824 16,51,422(iii) Bank balances other than (iii) above 7.3 27,13,904 33,11,658 37,64,186(iv) Loans 7.4 19,68,385 10,58,262 9,62,377(v) Other financial assets 7.5 8,97,421 19,40,918 15,18,150

(c) Other current assets 8 99,42,211 99,21,078 82,56,788Total current assets 32,38,18,448 34,63,22,766 29,53,32,000TOTAL ASSETS 49,03,56,932 51,87,67,873 44,49,50,700EQUITY AND LIABILITIESEquity(a)Equity Share capital 9 3,00,00,000 3,00,00,000 3,00,00,000(b)Other Equity 10 23,92,02,728 20,80,93,474 18,03,71,307Total equity 26,92,02,728 23,80,93,474 21,03,71,307LiabilitiesNon-current liabilities(a) Financial Liabilities (i) Borrowings 11 1,87,06,045 3,67,68,655 2,82,66,311(b) Provisions 12 57,63,038 43,00,200 34,75,187(c) Deferred tax liabilities (Net) 13 96,60,115 82,52,817 80,21,190(d) Other non-current liabilities 14 28,49,201 31,60,023 34,70,845Total non current liabilities 3,69,78,399 5,24,81,695 4,32,33,533Current liabilities(a) Financial Liabilities (i) Borrowings 15.1 7,41,16,945 9,83,64,301 7,89,98,517

(ii) Trade payables 15.2 8,78,08,971 10,56,70,221 9,38,92,674(iii) Other financial liabilities 15.3 1,29,13,683 1,27,91,552 89,31,389

(b) Other current liabilities 16 55,72,829 67,93,433 58,34,701(c) Provisions 17 37,63,377 45,73,198 36,88,580Total current liabilities 18,41,75,805 22,81,92,705 19,13,45,861TOTAL EQUITY AND LIABILITIES 49,03,56,932 51,87,67,873 44,49,50,700




M. D. DESAIC.F.O.








99

CONSOLIDATED STATEMENT OF PROFIT AND LOSS FOR THE PERIOD ENDED 31st MARCH, 2018

Particulars Note No 31.03.2018 31.03.2017

I Revenue from Operations 18 1,07,26,98,184 1,17,52,84,379

II Other Income 19 1,98,83,777 90,64,288

III TOTAL INCOME (I+II) 1,09,25,81,961 1,18,43,48,667

IV Expenses

Cost of materials consumed 20 76,09,31,318 79,04,16,285

Changes in inventories of finished goods, stock in trade

and work-in-progress 21 (62,67,274) (39,37,144)

Excise Duty 22 3,54,27,148 12,33,82,698

Employee benefits expense 23 7,80,25,875 7,06,05,795

Finance costs 24 1,59,40,675 2,00,28,487

Depreciation and amortization expense 2 2,15,98,959 2,13,26,677

Other expenses 25 13,43,84,705 12,41,69,354

TOTAL EXPENSES (IV) 1,04,00,41,406 1,14,59,92,152

-

V Profit/(loss) before tax (III-IV) 5,25,40,555 3,83,56,515

VI Tax expense: -

(1) Current tax 1,67,57,000 89,33,000

(2) Deferred tax 6,87,719 (2,34,208)

(3) Tax in respect of Earlier Years - 60,791

VII Profit/(loss) for the year 3,50,95,836 2,95,96,932

VIIIOther Comprehensive Income

A (i) Items that will not be reclassified to profit or loss 2,60,248 (14,08,930)

(ii) Income tax relating to items that will not be

reclassified to profit or loss 86,046 (4,65,835)

IX Total Comprehensive Income for the period (XIII + XIV)

(Comprising Profit (Loss) and Other Comprehensive

Income for the year) 3,54,42,130 2,77,22,167

X Earnings per equity share [Nominal value per share Rs.10]

(1) Basic 11.70 9.87

(2) Diluted 11.70 9.87




M. D. DESAIC.F.O.







Ecoplast Limited

100

CONSOLIDATED CASH FLOW STATEMENT FOR THE YEAR ENDED 31st MARCH, 2018


A. Cash flow from operating activities

Net Profit before Tax as per Statement of Profit and Loss 5,25,40,555 3,83,56,515

Adjustments for:

Depreciation and amortization and impairment 2,21,66,099 2,13,26,677

(Profit) / loss on sale / write off of assets (net) (1,49,579) (1,20,187)

Finance costs 1,58,39,049 2,00,28,487

Interest income (52,05,402) (8,72,535)

Other Comprehensive Income 2,60,248 (14,08,930)

Liabilities / provisions no longer required written back (25,68,986) (3,31,135)

3,03,41,429 3,86,22,376

Operating profit before working capital changes 8,28,81,984 7,69,78,891

Changes in working capital:

Adjustments for (increase)/decrease in operating assets:

Inventories (3,17,017) (1,77,91,252)

Trade receivables 3,45,62,322 (3,02,88,697)

Short-term loans and advances (9,10,123) (95,885)

Long-term loans and advances (12,37,057) (25,70,618)

Other current financial assets (25,01,175) (4,22,768)

Other non current assets (47,40,499) 14,55,264

Other current assets 36,18,745 (16,64,290)

Adjustments for increase / (decrease) in operating liabilities:

Trade payables (2,16,42,400) 1,21,08,682

Other current liabilities (12,20,603) 9,58,732

Other current financial liabilities (77,021) 38,60,163

Other non current liabilities (3,10,822) (3,10,822)

Short-term provisions (8,09,822) 8,84,619

Long-term provisions 14,62,838 8,25,013

58,77,366 (3,30,51,857)

8,87,59,350 4,39,27,034

Cash generated from operations 8,87,59,350 4,39,27,034

Net income tax (paid) / refunds (1,67,57,000) (89,93,791)

Net cash flow from/(used in)operating activities(A) 7,20,02,350 3,49,33,243\

B. Cash flow from investing activities

Capital expenditure on fixed assets, including capital advances (1,18,94,133) (4,30,47,075)

Proceeds from sale of fixed assets 16,28,044 1,29,531

Loans given

- Subsidiaries 4,07,367 -

- Others 76,08,091 8,72,535

(22,50,632) (4,20,45,009)

(22,50,632) (4,20,45,009)

Net cash flow from/(used in) investing activities(B) (22,50,632) (4,20,45,009)


101




M. D. DESAIC.F.O.







CONSOLIDATED CASH FLOW STATEMENT FOR THE YEAR ENDED 31st MARCH, 2018


C. Cash flow from financing activities

Proceeds / (Repayment) of long-term borrowings (1,75,34,464) 85,02,344

Net increase / (decrease) in Short term borrowings (2,41,49,630) 1,93,65,784

Finance cost (1,59,40,675) (2,00,28,487)

Interim Dividends paid - -

Tax on interim dividend - -

Dividends paid (36,00,000) -

Tax on dividend (7,32,875) -

(6,19,57,644) 78,39,642

Net cash flow from/(used in) financing activities(C) (6,19,57,644) 78,39,642

Net increase/(decrease) in Cash and cash equivalents (A+B+C) 77,94,074 7,27,876

Cash and cash equivalents at the beginning of the year 61,43,483 54,15,608

Cash and cash equivalents at the end of the year 1,39,37,557 61,43,484

Cash and cash equivalents at the end of the year Comprises :

(a) Cash on hand 5,86,046 3,39,764

(b) Balances with banks

(i) In current accounts 1,00,55,607 24,92,060

(ii) In earmarked accounts (Refer Note (2) below) 32,95,904 33,11,658

1,39,37,557 61,43,483

Notes:

1) The above Cash Flow Statement has been prepared under the "Indirect Method " as set out in Indian Accounting Standard (Ind AS - 7) on statement of Cash Flow.

2 The previous year's figures have been regrouped/ restated wherever necessary to confirm to this year's classification.

3 Earmarked account balances with banks can be utilized only for the specific identified purposes.

Ecoplast Limited

102

Notes to Consolidated Financial Statements for the year ended 31st March, 2018

Corporate Information

Ecoplast Limited is Public Company domiciled in India and incorporated under the provisions of the Companies Act, 1956 having

Corporate Identity Number L25200GJ1981PLC004375. Its shares are listed on Bombay Stock Exchange in India. The Company

is engaged in the business of manufacturing, processing and selling of Co-extruded Plastic Film for packaging and industrial

applications. The principal place of business of the company is at Abrama-Valsad. The Company caters to both domestic and

international markets. It has various certifications like ISO 9001, ISO 14001 and ISO 22000 registration for products thereby

complying with globally accepted quality standards.

1. Principles of Consolidation

The consolidated financial statements incorporate the consolidated financial statements of the Company and entities controlled by

the Company and its subsidiaries. Control is achieved when the Company:

• has power over the investee;

• is exposed, or has rights, to variable returns from its involvement with the investee; and

• has the ability to use its power to affect its returns.

The Company reassesses whether or not it controls an investee if facts and circumstances indicate that there are changes to one

or more of the three elements of control listed above. When the Company has less than a majority of the voting rights of an

investee, it has power over the investee when the voting rights are sufficient to give it the practical ability to direct the relevant

activities of the investee unilaterally. The Company considers all relevant facts and circumstances in assessing whether or not the

Company’s voting rights in an investee are sufficient to give it power, including:

• the size of the Company’s holding of voting rights relative to the size and dispersion of holdings of the other vote holders;

• potential voting rights held by the Company, other vote holders or other parties;

• rights arising from other contractual arrangements; and

• any additional facts and circumstances that indicate that the Company has, or does not have, the current ability to direct the

relevant activities at the time that decisions need to be made, including voting patterns at previous shareholders’ meetings.

Consolidation of a subsidiary begins when the Company obtains control over the subsidiary and ceases when the Company loses

control of the subsidiary. Specifically, income and expenses of a subsidiary acquired or disposed of during the year are included in

the Consolidated Statement of Profit and Loss from the date the Company gains control until the date when the Company ceases

to control the subsidiary.

Profit or loss and each component of other comprehensive income are attributed to the owners of the Company and to the non-

controlling interests. Total comprehensive income of subsidiaries is attributed to the owners of the Group and to the non-controlling

interests even if this results in the non-controlling interests having a deficit balance.

When necessary, adjustments are made to the consolidated financial statements of subsidiaries to bring their accounting policies

into line with the Group’s accounting policies.

All intragroup assets and liabilities, equity, income, expenses, and cash flows relating to transactions between members of the

Group are eliminated in full on consolidation

The Subsidiary Company in the consolidated financial statement is:

Name of the Company : Synergy Films Private Limited

Country of Incorporation : India

% Voting power held : 100

1. Statement of Significant Accounting Policies

Basis of Preparation:


103

The consolidated financial statements are prepared in accordance with Indian Accounting Standards (Ind AS) notified under

Section 133 of the Companies Act, 2013 (“Act”) read with Companies (Indian Accounting Standards) Rules, 2015; and the other

relevant provisions of the Act and Rules thereunder.

The consolidated financial statements have been prepared under historical cost convention basis, except for certain assets and

liabilities measured at fair value.

The Company has adopted all the Ind AS and the adoption was carried out in accordance with Ind AS 101 ‘First time adoption of

Indian Accounting Standards’. The transition was carried out from Generally Accepted Accounting Principles in India (Indian

GAAP) as prescribed under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014, as amended

which was the “Previous GAAP”.

The Company’s presentation and functional currency is Indian Rupees (Rs.). All figures appearing the consolidated financial

statements are rounded off to the Rupee, except where otherwise indicated.

1.1. Use of Judgment and Estimates:

The preparation of Company’s consolidated financial statements requires management to make judgments, estimates and

assumptions that affect the reported amounts of revenue, expenses, assets, liabilities and the accompanying disclosures along

with contingent liabilities. Uncertainty about these assumptions and estimates could result in outcomes that require material

adjustments to the carrying amounts of the assets or liabilities affected in future periods. The Company continually evaluates

these estimates and assumptions based on the most recently available information.

v Financial instruments;

v Estimates of useful lives and residual value of Property, Plant and Equipment and Intangible assets;

v Valuation of Inventories

v Measurement of Defined Benefit Obligations and actuarial assumptions;

v Provisions;

v Contingencies.

Revisions to accounting estimates are recognised prospectively in the consolidated Statement of Profit and Loss in the period

in which the estimates are revised and in any future periods affected.

1.2. Property, Plant and Equipment

1.2.1. Property, Plant and Equipment are stated at cost net of accumulated depreciation and accumulated impairment losses,

if any.

1.2.2. The initial costs of an asset comprises its purchase price or construction costs (including import duties and non-

refundable taxes), any costs directly attributable to bringing the asset into the location and condition necessary for it to

be capable of operating in the manner intended by management, the initial estimate of any decommissioning obligation,

if any, and borrowing cost for qualifying assets (i.e. assets that necessarily take a substantial period of time to get ready

for their intended use).

1.2.3. Subsequent expenditure is capitalized only if it is probable that the future economic benefits associated with the

expenditure will flow to the Company.

1.2.4. Expenditure on assets not exceeding threshold limit are charged to revenue.

1.2.5. Spare parts which meet the definition of Property, Plant and Equipment are capitalised as Property, Plant and

Equipment in case the unit value of the spare part is above the threshold limit. In other cases, the spare part is

inventorised on procurement and charged to consolidated Statement of Profit and Loss on consumption.

1.2.6. An item of Property, Plant and Equipment and any significant part initially recognized separately as part of Property,

Plant and Equipment is de-recognised upon disposal; or when no future economic benefits are expected from its use or

disposal. Any gain or loss arising on de-recognition of the asset is included in the consolidated Statement of Profit and

Ecoplast Limited

104

Loss when the asset is de-recognised.

1.2.7. The residual values and useful lives of Property, Plant and Equipment are reviewed at each financial year end and

changes, if any are accounted in line with revisions to accounting estimates.

1.2.8. The Company has elected to use exemption available under Ind AS 101 to continue the carrying value for all its Property,

Plant and Equipment as recognised in the consolidated financial statements as at the date of transition to Ind ASs,

measured as per previous GAAP and use that as its deemed cost as at the date of transition (1st April, 2016).

1.3. Depreciation

Depreciation on Property, Plant and Equipment are provided on straight line basis, over the estimated useful lives of assets

(after retaining the estimated residual value of 5%). These useful lives determined are in line with the useful lives as prescribed

in the Schedule II of the Act.

1.3.1. Items of Property, Plant and Equipment costing not more than the threshold limit are depreciated 100% in the year of

acquisition.

1.3.2. Components of the main asset that are significant in value and have different useful lives as compared to the main asset

are depreciated over their estimated useful life. Useful life of such components has been assessed based on historical

experience and internal technical assessment.

1.3.3. Depreciation on spare parts specific to an item of Property, Plant and Equipment is based on life of the related Property,

Plant and Equipment. In other cases, the spare parts are depreciated over their estimated useful life based on the

technical assessment.

1.3.4. Depreciation is charged on additions/ deletions on pro-rata monthly basis including the month of addition/ deletion.

1.4. Intangible Assets

1.4.1. Intangible assets are carried at cost net of accumulated amortization and accumulated impairment losses, if any.

1.5. Investment Property

1.5.1. Investment property is property (land or a building – or part of building – or both) held either to earn rental income or a

capital appreciation or for both, but not for sale in the ordinary course of business, use in production or supply of goods or

services or for administrative purposes.

1.5.2. Any gain or loss on disposal of investment property calculated as the difference between the net proceeds and the

carrying amount of the Investment Property is recognised in consolidated Statement of Profit and Loss.

1.6. Borrowing Costs

1.6.1. Borrowing costs consist of interest and other costs incurred in connection with the borrowing of funds. Borrowing costs

also include exchange differences to the extent regarded as an adjustment to the borrowing costs.

1.6.2. Borrowing costs that are attributable to the acquisition or construction of qualifying assets (i.e. an asset that necessarily

takes a substantial period of time to get ready for its intended use) are capitalized as a part of the cost of such assets. All

other borrowing costs are charged to the consolidated Statement of Profit and Loss.

1.7. Non current asset held for sale

1.7.1. Non-current assets are classified as held for sale if their carrying amounts will be recovered through a sale transaction

rather than through continuing use. This condition is regarded as met only when the sale is highly probable and the asset

is available for immediate sale in its present condition subject only to terms that are usual and customary for sale of such

assets.

1.7.2. Non-current assets classified as held for sale are measured at the lower of carrying amount and fair value less costs to

sell.

1.7.3. Property, Plant and Equipment and intangible assets classified as held for sale are not depreciated or amortized.


105

1.8. Leases

1.8.1. Finance Leases

A lease agreement that transfers substantially all the risks and rewards irrespective of whether title is transferred is

classified as a finance lease.

Finance lease are capitalized at the commencement of the lease at fair value of the leased property or, if lower, at

present value of minimum lease payment.

Leases of land where, the company assumes substantially all the risks and rewards of ownership are classified as

finance lease. Finance lease of land are capitalized at the lease’s inception at upfront lease payments.

A leased asset is depreciated over the useful life of the asset. However, if there is no reasonable certainty that the

company will obtain ownership by the end of the lease term, the asset is depreciated over the shorter of the useful

estimated life of the asset and the lease term.

Finance charges are recognised as finance charges in the consolidated Statement of Profit and Loss. Lease

management fees, legal charges and other initial direct costs of lease are capitalized.

1.8.2. Operating Leases

Lease Agreements which are not classified as finance leases are considered as Operating Leases.

Payments made under operating leases are recognised in consolidated Statement of Profit and Loss with reference to

lease terms and other relevant considerations. Lease incentives received/ lease premium paid (if any) are recognised

as an integral part of the total lease expense, over the term of the lease. Payments made under Operating Leases are

generally recognised in consolidated Statement of Profit and Loss on a straight line basis over the term of the lease,

unless such payment is structured to increase in line with expected general inflation.

1.8.3. Determining whether an arrangement contains a lease

At the inception of an arrangement, the Company determines whether the arrangement is or contains a lease. At

inception or on reassessment of an arrangement that contains a lease, the Company separates payments and other

consideration required by the arrangement into those for the lease and those for other elements on the basis of their

relative fair values. In case of a finance lease, if the Company concludes that it is impracticable to separate the

payments reliably, then an asset and a liability are recognised at an amount equal to the fair value of the underlying

assets; subsequently, the liability is reduced as payments are made and an imputed finance cost on the liability is

recognised using the Company’s incremental borrowing rate.

1.9. Impairment of Non-financial Assets

1.9.1. Non-financial assets other than inventories, deferred tax assets and non-current assets classified as held for sale are

reviewed at each Balance Sheet date to determine whether there is any indication of impairment. If any such indication

exists, or when annual impairment testing for an asset is required, the Company estimates the asset’s recoverable

amount. The recoverable amount is higher of the assets or Cash-Generating Units (CGU’s) fair value less costs of

disposal and its value in use. Recoverable amount is determined for an individual asset, unless the asset does not

generate cash inflows that are largely independent of those from other assets or group of assets.

1.9.2. When the carrying amount of an asset or CGU exceeds its recoverable amount, the asset is considered impaired and is

written down to its recoverable amount.

1.10. Inventories

1.10.1.The cost for the purpose of valuation of Finished and Semi - Finished goods is arrived at on FIFO basis and includes

Cost of conversion and other cost incurred in bringing the inventories to their present location and condition. Due allowance is

estimated and made for defective and obsolete items, wherever necessary, based on the past experience of the company.

Ecoplast Limited

106

The mode of valuing closing stock is as under:

v Raw Materials, Packing Materials, Machinery Spares, Ink and Fuel - at Cost or Net Realizable Value

v Finished and Semi - Finished goods – at lower of cost or net realizable value

v Scrap - net realizable value

1.10.2.Customs duty/GST on Raw materials/ finished goods lying in bonded warehouse is provided for at the applicable rates

except where liability to pay duty is transferred to consignee.

1.10.3.Excise duty on finished stocks lying at manufacturing locations is provided for at the assessable value applicable at each

of the locations based on end use.

1.10.4." Raw materials held for use in production of Finished Goods are written down below Cost , only if, the estimated Cost

or Net Realizable Value of Finished Goods will not exceed Net Realizable Value of such Raw Materials.”

1.10.5.Obsolete, slow moving, surplus and defective stocks are identified at the time of physical verification of stocks and

where necessary, provision is made for such stocks.

1.11. Revenue Recognition

1.11.1. Sale of Goods

Revenue from the sale of goods is recognized when the significant risks and rewards of the ownership of the goods have

passed to the buyer, the Company retains neither continuing managerial involvement to the degree usually associated

with ownership nor effective control over the goods sold, revenue and the associated costs can be estimated reliably

and it is probable that economic benefits associated with the transaction will flow to the Company.

Revenue from sale of goods includes excise duty and is measured at the fair value of the consideration received or

receivable (after including fair value allocations related to multiple deliverable and/or linked arrangements), after the

deduction of any trade discounts, volume rebates, net of returns, taxes or duties collected on behalf of the government.

When the Company acts as an agent on behalf of a third party, the associated income is recognized on net basis.

Export Sales are accounted for on the basis of the date of Bill of Lading.

1.11.2. Claims are recognized on settlement. Export incentives are accounted where there is reasonable assurance that the

incentive income will be received and all attached conditions will be complied with.

1.11.3. Interest income is recognized using Effective Interest Rate (EIR) method.

1.11.4. Dividend is recognized when right to receive the income is established, it is probable that the economic benefits

associated with the dividend will flow to the entity and the amount of dividend can be measured reliably.

1.12. Classification of Income/ Expenses

1.12.1.Income/ expenditure (net) in aggregate pertaining to prior year(s) above the threshold limit are corrected retrospectively

in the first set of consolidated financial statements approved for issue after their discovery by restating the comparative

amounts and / or restating the opening Balance Sheet for the earliest prior period presented.

1.12.2.Prepaid expenses up to threshold limit in each case, are charged to revenue as and when incurred.

1.13. Employee benefits

1.13.1.Short term employment benefits

Short term employee benefits such as salaries, wages, short-term compensated absences, performance incentives

etc., and the expected cost of bonus, ex-gratia are recognized as an expense at an undiscounted amount in the

consolidated Statement of Profit and Loss of the year in which the related services are rendered.


107

1.13.2.Defined Contribution Plans

v Superannuation :

The Company has Defined Contribution Plan for Post employment benefits in the form of Superannuation Fund for

certain class of employees as per the scheme, administered through Life Insurance Corporation (LIC) and Trust which

is administered by the Trustees and is charged to revenue every year. Company has no further obligation beyond its

contributions.

v Employee's Family Pension :

The Company has Defined Contribution Plan for Post-employment benefits in the form of family pension for all eligible

employees, which is administered by the Regional Provident Fund Commissioner and is charged to revenue every year.

Company has no further obligation beyond its monthly contributions.

v Provident Fund:

The Company has Defined Contribution Plan for Post-employment benefits in the form of Provident Fund for all eligible

employees; which is administered by the Regional Provident Fund Commissioner and is charged to revenue every year.

Company has no further obligations beyond its monthly contributions.

1.13.3.Defined Benefit Plans

v Gratuity :

The Company has a Defined Benefit Plan for Post-employment benefit in the form of gratuity for all eligible employees

which is administered through Life Insurance Corporation (LIC) and a trust which is administered by the trustees.

Liability for above defined benefit plan is provided on the basis of actuarial valuation as at the Balance Sheet date,

carried out by an independent actuary. The actuarial method used for measuring the liability is the Projected Unit Credit

method.

v Compensated Absences :

Liability for Compensated Absences is provided on the basis of valuation, as at the Balance Sheet date, carried out by an

independent actuary. The Actuarial valuation method used for measuring the liability is the Projected Unit Credit

method. Under this method, the Defined Benefit Obligation is calculated taking into account pattern of availment of

leave whilst in service and qualifying salary on the date of availment of leave. In respect of encashment of leave, the

Defined Benefit obligation is calculated taking into account all types of the increment, salary growth, attrition rate and

qualifying salary projected up to the assumed date of encashment.

1.13.4.Termination Benefits:

Termination benefits are recognised as an expense as and when incurred.

1.13.5.The present value of the defined benefit obligation is determined by discounting the estimated future cash outflows by

reference to market yields at the end of the reporting period on Government bonds that have terms approximating to the

terms of the related obligation.

1.13.6.The net interest cost is calculated by applying the discount rate to the net balance of the defined benefit obligation and

the fair value of plan assets. This cost is included in employee benefit expense in the consolidated Statement of Profit

and Loss.

1.13.7.Remeasurement gains and losses arising from experience adjustments and changes in actuarial assumptions are

recognised in the period in which they occur directly in Other Comprehensive Income. They are included in retained

earnings in the Statement of changes in equity and in the Balance Sheet.

Ecoplast Limited

108

1.13.8.Changes in the present value of the defined benefit obligation resulting from plan amendments or curtailments are

recognised immediately in profit or loss as past service cost.

1.14. Foreign Currency Transactions

1.14.1.Monetary Items

Transactions in foreign currencies are initially recorded at their respective exchange rates at the date the transaction

first qualifies for recognition.

Monetary assets and liabilities denominated in foreign currencies are translated at exchange rates prevailing on the

reporting date.

Exchange differences arising on settlement or translation of monetary items (except for long term foreign currency

monetary items outstanding as of 31st March 2016) are recognised in consolidated Statement of Profit and Loss either

as profit or loss on foreign currency transaction and translation or as borrowing costs to the extent regarded as an

adjustment to borrowing costs.

1.14.2.Non – Monetary items:

Non-monetary items that are measured in terms of historical cost in a foreign currency are translated using the

exchange rates at the dates of the initial transactions.

1.15. Investment in Subsidiaries

Investments in subsidiary company carried at cost less accumulated impairment losses, if any. Where an indication of

impairment exists, the carrying amount of the investment is assessed and written down immediately to its recoverable amount.

On disposal of investments in subsidiary company, the difference between net disposal proceeds and the carrying amounts are

recognised in the consolidated Statement of Profit and Loss.

1.16. Government Grants

1.16.1.Government grants are recognized at fair value where there is reasonable assurance that the grant will be received and

all attached conditions will be complied with.

1.16.2.When the grant relates to an expense item, it is recognized in consolidated Statement of Profit and Loss on a systematic

basis over the periods that the related costs, for which it is intended to compensate, are expensed.

1.16.3.Government grants relating to Property, Plant and Equipment are presented as deferred income and are credited to the

consolidated Statement of Profit and Loss on a systematic and rational basis over the useful life of the asset.

1.17. Provisions, Contingent Liabilities and Capital Commitments

1.17.1.Provisions are recognized when there is 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.

1.17.2.The expenses relating to a provision is presented in the consolidated Statement of Profit and Loss net of

reimbursements, if any.

1.17.3.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 of time is recognized as a finance cost.

1.17.4.Contingent liabilities are possible obligations whose existence will only be confirmed by future events not wholly within

the control of the Company, or present obligations where it is not probable that an outflow of resources will be required or

the amount of the obligation cannot be measured with sufficient reliability.


109

1.17.5.Contingent liabilities are not recognized in the consolidated financial statements but are disclosed unless the possibility

of an outflow of economic resources is considered remote.

1.17.6.Contingent liabilities and Capital Commitments disclosed are in respect of items which in each case are above the

threshold limit.

1.18. Fair Value measurement

1.18.1.The Company measures certain financial instruments at fair value at each reporting date.

1.18.2.Certain accounting policies and disclosures require the measurement of fair values, for both financial and non- financial

assets and liabilities.

1.18.3.Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction

between market participants at the measurement date in the principal or, in its absence, the most advantageous market

to which the Company has access at that date. The fair value of a liability also reflects its non-performance risk.

1.18.4.The best estimate of the fair value of a financial instrument on initial recognition is normally the transaction price – i.e. the

fair value of the consideration given or received. If the Company determines that the fair value on initial recognition

differs from the transaction price and the fair value is evidenced neither by a quoted price in an active market for an

identical asset or liability nor based on a valuation technique that uses only data from observable markets, then the

financial instrument is initially measured at fair value, adjusted to defer the difference between the fair value on initial

recognition and the transaction price. Subsequently that difference is recognised in consolidated Statement of Profit

and Loss on an appropriate basis over the life of the instrument but no later than when the valuation is wholly supported

by observable market data or the transaction is closed out.

1.18.5.While measuring the fair value of an asset or liability, the Company uses observable market data as far as possible. Fair

values are categorised into different levels in a fair value hierarchy based on the inputs used in the valuation technique

as follows:

v Level 1: quoted prices (unadjusted) in active markets for identical assets or liabilities.

v Level 2: inputs other than quoted prices included in Level 1 that are observable for the assets or liability, either directly

(i.e. as prices) or indirectly (i.e. derived from prices)

v Level 3: inputs for the assets or liability that are not based on observable market data (unobservable inputs)

1.18.6.When quoted price in active market for an instrument is available, the Company measures the fair value of the

instrument using that price. A market is regarded as active if transactions for the asset or liability take place with

sufficient frequency and volume to provide pricing information on an ongoing basis.

1.18.7.If there is no quoted price in an active market, then the Company uses a valuation techniques that maximise the use of

relevant observable inputs and minimise the use of unobservable inputs. The chosen valuation technique incorporates

all of the factors that market participants would take into account in pricing a transaction.

1.18.8.The Company regularly reviews significant unobservable inputs and valuation adjustments. If the third party

information, such as broker quotes or pricing services, is used to measure fair values, then the Company assesses the

evidence obtained from the third parties to support the conclusion that these valuations meet the requirements of Ind

AS, including the level in the fair value hierarchy in which the valuations should be classified.

1.19. Financial Assets


Trade Receivables and debt securities issued are initially recognised when they are originated. All other financial assets

are initially recognised when the Company becomes a party to the contractual provisions of the instrument. All financial

Ecoplast Limited

110

assets other than those measured subsequently at fair value through profit and loss, are recognised initially at fair value

plus transaction costs that are attributable to the acquisition of the financial asset.


Subsequent measurement is determined with reference to the classification of the respective financial assets. Based on

the business model for managing the financial assets and the contractual cash flow characteristics of the financial asset,

the Company classifies financial assets as subsequently measured at amortised cost, fair value through other

comprehensive income or fair value through profit and loss.

Debt instruments at amortised cost

A 'debt instrument' is measured at the amortised cost if both the following conditions are met:

The asset is held within a business model whose objective is

- To hold assets for collecting contractual cash flows, and

- Contractual terms of the asset give rise on specified dates to cash flows that are solely payments of principal and

interest (SPPI) on the principal amount outstanding.

After initial measurement, such financial assets are subsequently measured at amortised cost using the effective

interest rate (EIR) method. Amortised cost is calculated by taking into account any discount or premium and fees or

costs that are an integral part of the EIR. The EIR amortisation is included in finance income in the consolidated

Statement of Profit and Loss. The losses arising from impairment are recognised in the consolidated Statement of Profit

and Loss.

Debt instruments at Fair value through Other Comprehensive Income (FVOCI)

A 'debt instrument' is measured at the fair value through Other Comprehensive Income if both the following conditions

are met:

"The asset is held within a business model whose objective is achieved by both”

- collecting contractual cash flows and selling financial assets and

- contractual terms of the asset give rise on specified dates to cash flows that are SPPI on the principal amount

outstanding.

After initial measurement, these assets are subsequently measured at fair value. Interest income under effective

interest method, foreign exchange gains and losses and impairment losses are recognised in the consolidated

Statement of Profit and Loss. Other net gains and losses are recognised in other comprehensive Income.

Debt instruments at Fair value through Profit or Loss (FVTPL)

Fair Value through Profit or Loss is a residual category for debt instruments. Any debt instrument, which does not meet

the criteria for categorisation at amortised cost or as FVOCI, is classified as FVTPL.

After initial measurement, any fair value changes including any interest income, foreign exchange gain and losses,

impairment losses and other net gains and losses are recognised in the consolidated Statement of Profit and Loss.

Equity investments

All equity investments within the scope of Ind AS 109 are measured at fair value. Such equity instruments which are held

for trading are classified as FVTPL. For all other such equity instruments, the Company decides to classify the same

either as FVOCI or FVTPL. The Company makes such election on an instrument-by-instrument basis. The classification

is made on initial recognition and is irrevocale.


111

For equity instruments classified as FVOCI, all fair value changes on the instrument, excluding dividends, are

recognized in Other Comprehensive Income (OCI). Dividends on such equity instruments are recognised in the

Statement of Profit or Loss.

Equity instruments included within the FVTPL category are measured at fair value with all changes recognized in the

consolidated Statement of Profit and Loss.

1.19.3.De-recognition

A financial asset (or, where applicable, a part of a financial asset or part of a group of similar financial assets) is primarily

derecognised (i.e. removed from the Company's Balance Sheet) when

v The rights to receive cash flows from the asset have expired, or

v The Company has transferred its rights to receive cash flows from the asset or has assumed an obligation to pay the

received cash flows in full without material delay to a third party under a 'pass-through' arrangement; and either:

- The Company has transferred substantially all the risks and rewards of the asset, or

- The Company has neither transferred nor retained substantially all the risks and rewards of the asset, but has

transferred control of the asset.

On de-recognition, any gains or losses on all debt instruments (other than debt instruments measured at FVOCI) and

equity instruments (measured at FVTPL) are recognised in the consolidated Statement of Profit and Loss. Gains and

losses in respect of debt instruments measured at FVOCI and that are accumulated in OCI are reclassified to profit or

loss on de-recognition. Gains or losses on equity instruments measured at FVOCI that are recognised and accumulated

in OCI are not reclassified to profit or loss on de-recognition.

1.19.4. Impairment of financial assets

In accordance with Ind AS 109, the Company applies Expected Credit Loss (“ECL”) model for measurement and

recognition of impairment loss on the financial assets measured at amortised cost and debt instruments measured at

FVOCI.

Loss allowances on trade receivables are measured following the ‘simplified approach’ at an amount equal to the

lifetime ECL at each reporting date.The application of simplified approach does not require the Company to track

changes in credit risk. Based on the past history and track records the company has assessed the risk of default by the

customer and expects the credit loss to be insignificant. In respect of other financial assets such as debt securities and

bank balances, the loss allowance is measured at 12 month ECL only if there is no significant deterioration in the credit

risk since initial recognition of the asset or asset is determined to have a low credit risk at the reporting date.

1.20. Financial Liabilities


Financial liabilities are initially recognised when the Company becomes a party to the contractual provisions of the

instrument.

Financial liability is initially measured at fair value plus, for an item not at fair value through profit and loss, transaction

costs that are directly attributable to its acquisition or issue.


Subsequent measurement is determined with reference to the classification of the respective financial liabilities.

Financial Liabilities at Fair Value through Profit or Loss (FVTPL)

Ecoplast Limited

112

A financial liability is classified as at Fair Value through Profit or Loss (FVTPL) if it is classified as held-for-trading or is

designated as such on initial recognition. Financial liabilities at FVTPL are measured at fair value and changes therein,

including any interest expense, are recognised in consolidated Statement of Profit and Loss.

Financial Liabilities at amortised cost

After initial recognition, financial liabilities other than those which are classified as FVTPL are subsequently measured at

amortised cost using the effective interest rate (“EIR”) method.

Amortised cost is calculated by taking into account any discount or premium and fees or costs that are an integral part of

the EIR. The amortisation done using the EIR method is included as finance costs in the consolidated Statement of

Profit and Loss.

1.21. Financial guarantees

Financial guarantee contracts issued by the Company are those contracts that require a payment to be made to reimburse the

holder for a loss it incurs because the specified debtor fails to make a payment when due in accordance with the terms of the

debt instrument. Financial guarantee contracts are recognised initially as a liability at fair value, adjusted for transaction costs

that are directly attributable to the issuance of the guarantee. Subsequently, the liability is measured at the higher of the amount

of loss allowance determined as per impairment requirements of Ind AS 109 and the fair value initially recognised less

cumulative amortisation.

1.22. Embedded derivatives

If the hybrid contract contains a host that is a financial asset within the scope of Ind AS 109, the classification requirements

contained in Ind AS 109 are applied to the entire hybrid contract. Derivatives embedded in all other host contracts, including

financial liabilities are accounted for as separate derivatives and recorded at fair value if their economic characteristics and

risks are not closely related to those of the host contracts and the host contracts are not held for trading or designated at fair

value through profit and loss. These embedded derivatives are measured at fair value with changes in fair value recognised in

consolidated Statement of Profit and Loss, unless designated as effective hedging instruments. Reassessment only occurs if

there is either a change in the terms of the contract that significantly modifies the cash flows.

1.23. Offsetting of financial instruments

Financial assets and financial liabilities are offset and the net amount is reported in the Balance Sheet, if there is a currently

enforceable legal right to offset the recognised amounts and there is an intention to settle on a net basis, or to realise the assets

and settle the liabilities simultaneously.

1.24. Taxes on Income

1.24.1.Current Tax

Income-tax Assets and liabilities are measured at the amount expected to be recovered from or paid to the taxation

authorities. The tax rates and tax laws used to compute the amount are those that are enacted or substantively enacted,

by the end of reporting period.

Current Tax items are recognised in correlation to the underlying transaction either in the consolidated Statement of

Profit and Loss, other comprehensive income or directly in equity.

1.24.2.Deferred tax

Deferred tax is provided using the Balance Sheet method on temporary differences between the tax bases of assets and

liabilities and their carrying amounts for financial reporting purposes at the reporting date.

"Deferred tax liabilities are recognised for all taxable temporary differences.Deferred tax assets are recognised for all

deductible temporary differences, the carry forward of unused tax credits and any unused tax losses. 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.”


113

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 tax asset to be utilised.

Unrecognised deferred tax assets are re-assessed at each reporting date and are recognised to the extent that it has

become probable that future taxable profits will allow the deferred tax asset to be recovered.

Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the year when the asset is

realised or the liability is settled, based on tax rates and tax laws that have been enacted or substantively enacted at the

reporting date.

Deferred Tax items are recognised in correlation to the underlying transaction either in the consolidated Statement of

Profit and Loss, other comprehensive income or directly in equity.

Deferred tax assets and deferred tax liabilities are offset if a legally enforceable right exists to set off current tax assets

against current tax liabilities and the deferred taxes relate to the same taxable entity and the same taxation authority.

1.25. Earnings per share

Basic earnings per share are calculated by dividing the profit or loss for the period attributable to equity shareholders (after

deducting preference dividends, if any, and attributable taxes) by the weighted average number of equity shares outstanding

during the period.

For the purpose of calculating diluted earnings per share, the profit or loss for the period attributable to equity shareholders and

the weighted average number of shares outstanding during the period are adjusted for the effect of all dilutive potential equity

shares.

1.26. Classification of Assets and Liabilities as Current and Non-Current:

All assets and liabilities are classified as current or non-current as per the Company’s normal operating cycle (determined at 12

months) and other criteria set out in Schedule III of the Act.

1.27. Cash and Cash equivalents

Cash and cash equivalents in the Balance Sheet include cash at bank, cash, cheque, draft on hand and demand deposits with

an original maturity of less than three months, which are subject to an insignificant risk of changes in value.

For the purpose of Statement of Cash Flows, Cash and cash equivalents include cash at bank, cash, cheque and draft on hand.

The Company considers all highly liquid investments with a remaining maturity at the date of purchase of three months or less

and that are readily convertible to known amounts of cash to be cash equivalents.

1.28. Cash Flows

Cash flows are reported using the indirect method, where by net profit before tax is adjusted for the effects of transactions of a

non-cash nature, any deferrals or accruals of past or future operating cash receipts or payments and item of income or

expenses associated with investing or financing cash flows. The cash flows from operating, investing and financing activities

are segregated.

1.29. The Company has adopted the following materiality threshold limits in the preparation and presentation of

financials statements as given below:

Threshold ItemAccounting

PolicyReference

Unit ThresholdLimit Value

Capitalisation of spare parts meeting the definition of Property,

Equipment in each case

Depreciation at 100 percent in the year of acquisition

Income / expenditure (net) in aggregate pertaining to prior year(s)

Disclosure of Contingent liabilities and Capital Commitments

Prepaid expenses

Plant and

in each case

1.2.5.

1.3.1.

1.12.1.

1.17.6.

1.12.2

0.50

0.05

1.00

1.00

0.10

Lakhs

Lakhs

Lakhs

Lakhs

Lakhs

Ecoplast Limited

114

No

te 2

: P

rop

ert

y, P

lan

t &

Eq

uip

men

t an

d In

tan

gib

le A

ssets

Part

icu

lars

Lan

d-

Fre

eh

old

Bu

ild

ing

sP

lan

t &

Eq

uip

men

tF

urn

itu

re&

Fix

ture

sV

eh

icle

sO

ffic

eE

qu

ipm

en

tTo

tal

Co

st

as a

t 1

st

Ap

ril, 2

016

Additi

ons

Dele

tions

Gro

ss C

arr

yin

g v

alu

e a

s o

n M

arc

h 3

1,2

017

Additi

ons

Dele

tions

Gro

ss C

arr

yin

g v

alu

e a

s o

n M

arc

h 3

1,2

018

Accu

mu

late

d d

ep

recia

tio

n a

s o

n A

pri

l 1,2

016

Depre

ciatio

n c

harg

e for

the y

ear

Depre

ciatio

n e

limin

ate

d u

pto

dis

posa

l

Accu

mu

late

d d

ep

recia

tio

n a

s o

n M

arc

h 3

1,2

017

Depre

ciatio

n c

harg

e for

the y

ear

Depre

ciatio

n c

harg

ed u

pto

dis

posa

l

Accu

mu

late

d d

ep

recia

tio

n a

s o

n M

arc

h 3

1,2

018

Net

bo

ok v

alu

e

At 31st

, 2016

At 31st

Marc

h, 2017

At

31st

Marc

h, 2018

Marc

h

50,9

6,1

85 - -

50,9

6,1

85 - -

50,9

6,1

85 - - - - -

-

-

50,9

6,1

85

50,9

6,1

85

50,9

6,1

85

67,3

5,9

03 -

4,0

0,7

94 - -

1

-

1

-

3,3

1,4

5,3

37

3,9

8,8

1,2

40

4,0

2,8

2,0

34

7,1

2,5

98

17,1

2,5

98

8,4

9,9

52

35,6

2,5

50

3,3

1,4

5,3

37

3,8

1,6

8,6

41

3,6

7,1

9,4

83

8,1

4,4

8,4

29

3,2

1,7

5,1

21 -

11,3

6,2

3,5

50

1,3

5,4

6,7

04

13,7

8,0

44

12,5

7,9

2,2

10 -

1,7

9,3

7,5

55 -

1,7

9,3

7,5

55

1,7

9,7

7,9

80 -

3,5

9,1

5,5

35

8,1

4,4

8,4

29

9,5

6,8

5,9

95

8,9

8,7

6,6

75

3,9

5,0

37

1,9

4,5

48

10,1

20

5,7

9,4

65

7,0

0,8

96 -

12,8

0,3

61 -

98,9

57

776

98,1

81

1,0

6,9

48 -

2,0

5,1

29

3,9

5,0

37

4,8

1,2

84

10,7

5,2

32

41,1

0,8

97

70,2

01 -

41,8

1,0

98 -

11,5

3,9

68

30,2

7,1

30 -

9,0

0,8

36 -

9,0

0,8

36

8,9

3,5

52

9,7

3,2

47

8,2

1,1

41

41,1

0,8

97

32,8

0,2

61

22,0

5,9

88

20,3

7,6

39

6,6

4,8

95 -

27,0

2,5

34

10,9

3,1

06

50,9

10

37,4

4,7

30 -

6,7

6,7

30 -

6,7

6,7

30

7,7

0,5

27

48,3

65

13,9

8,8

92

20,3

7,6

39

20,2

5,8

04

23,4

5,8

38

12,6

2,3

3,5

24

3,9

8,4

0,6

68

10,1

20

16,6

0,6

4,0

72

1,5

7,4

1,5

00

25,8

2,9

22

17,9

2,2

2,6

50 - -

2,1

3,2

6,6

77

776

2,1

3,2

5,9

01

2,1

5,9

8,9

59

10,2

1,6

12

4,1

9,0

3,2

48

12,6

2,3

3,5

24

14,4

7,3

8,1

71

13,7

3,2

4,7

09

(i)

Gro

ss B

lock

incl

ude R

s.24,4

6,4

49

on

reva

luatio

n o

f F

ixed A

ssets

as

on 3

1st

Marc

h,

1994 e

xcl

udin

g V

ehic

les,

Furn

iture

& F

ixtu

res

and O

ffic

e

Equip

ments

.

(ii)

Build

ings

incl

ude R

s.250 b

ein

g c

ost

of 5

share

s of R

s.50 e

ach

in R

iddhi P

rem

ises

Co-o

pera

tive H

ousi

ng S

oci

ety

Ltd

.

(iii)

Ass

ets

are

morg

aged /

hyp

oth

eca

ted a

s se

curity

for b

orr

ow

ing

(iv)

The C

om

pany

has

adopte

d c

arr

ying v

alu

e a

s re

cogniz

ed in t

he f

inanci

al st

ate

ment

as

at

31st

Ma

rch,

2016,

measu

red a

s per

Pre

vious

GA

AP

as

its

deem

ed c

ost

.

No

tes t

o C

on

so

lid

ate

d F

inan

cia

l S

tate

men

ts f

or

the y

ear

en

ded

31st

Marc

h,

2018


115

Particulars Gross BlockAccumulatedDepreciation /Amortisation

Net Block as perIGAAP

Ind ASReclassification

Net Block


Land -

Vehicles

Capital Work-in-progress

Freehold

Building

Plant and Equipment

Furniture and Fixtures

Office Equipments

Total

50,96,185

5,52,69,214

24,37,46,693

39,90,919

98,87,791

1,48,97,567

6,40,959

33,28,88,369

-

2,21,23,877

16,22,98,263

35,95,882

57,76,894

1,28,59,928

-

20,66,54,845

50,96,185

3,31,45,337

8,14,48,429

3,95,037

41,10,897

20,37,639

6,40,959

12,62,33,524

50,96,185

3,31,45,337

8,14,48,429

3,95,037

41,10,897

20,37,639

6,40,959

12,62,33,524

-

-

-

-

-

-

-

2 CAPITAL WORK-IN-PROGRESS




Capital work-in-progress 38,47,366 6,40,959-

4 LOANS




Security deposits ( Unsecured, considered good) 76,69,538 73,79,101 49,90,227

Loans and advances to employees 16,26,493 12,08,019 10,26,275

Total 92,96,031 85,87,120 60,16,502

5 OTHER NON CURRENT ASSETS




Prepaid Expenses 2,46,676 1,94,458 2,77,636

Capital Advances 44,64,324 - 38,61,500

Advance income tax net of provisions 36,21,975 35,07,408 10,82,574

CST & VAT receivable on Assessment 1,89,964 1,75,779 1,11,200

Total 85,22,939 38,77,645 53,32,910

3 GOODWILL ON CONSOLIDATION




Goodwill on consolidation 1,13,94,805 1,13,94,805 1,13,94,805

Total 1,13,94,805 1,13,94,805 1,13,94,805

Ecoplast Limited

116

Accordingly, its Net Block as on 31st March, 2016 is its Gross Block under Ind AS. Break up of the said Gross block asat 1st April, 2016 is as under:

6 INVENTORIES




Raw materials 6,19,40,978 5,47,90,555 4,96,37,442

Raw-Materials in-transit 2,53,16,066 3,82,28,395 2,73,93,973

Semi Finished Goods 25,12,025

Work-in-progress 97,91,314 1,49,24,043 1,20,11,490

Finished goods 1,79,21,609 97,87,821 1,08,73,108

Finished Goods in-transit 38,44,334 43,40,219 22,73,061

Stores and Spares 3,200

Packing Materials. 24,66,755 13,66,046 34,57,228

Others - Scrap 4,303 17,624 17,149

Total 12,38,00,584 12,34,54,703 10,56,63,451

Footnote:(i) The mode of valuation has been stated in Note 1.10 .1(ii) Inventories have been hypothecated as security for borrowings

7.1 TRADE RECEIVABLES




Unsecured

(i) Considered good 17,33,09,179 20,63,96,432 17,57,77,545

(ii) Considered doubtful 5,43,137 7,92,277 8,92,277

Less: Provision for doubtful trade receivables (5,80,025) (33,84,386) (31,54,196)

Total 17,32,72,290 20,38,04,323 17,35,15,626

7.2 CASH AND CASH EQUIVALENTS




(i) Balances with banks

In current accounts 1,00,55,607 24,92,060 8,88,641

In Fixed Deposit 5,82,000 - -

(ii) Cash in hand 5,86,046 3,39,764 7,62,781

Total 1,12,23,653 28,31,824 16,51,422

7.3 BANK BALANCES




“ In Fixed Deposit Accounts, held as margin money

against Letter of Credit " 18,48,497 24,70,468 27,37,618

Unpaid dividend accounts 8,65,407 8,41,190 10,26,568

Total 27,13,904 33,11,658 37,64,186

7.4 LOANS (CURRENT)




Loans and Advances to employees 19,68,385 10,58,262 9,62,377

Total 19,68,385 10,58,262 9,62,377


117

Authorised share capital: No. of shares AmountBalance as at 1st April,2016 1,00,00,000 10,00,00,000Add / (Less): Changes during the year - -Balance as at 31st March,2017 1,00,00,000 10,00,00,000Add / (Less): Changes during the year - -Balance as at 31st March,2018 1,00,00,000 10,00,00,000Issued, Subscribed and paid up share capital: No. of shares AmountBalance as at 1st April,2016 30,00,000 3,00,00,000Add / (Less): Changes during the year - -Balance as at 31st March,2017 30,00,000 3,00,00,000Add / (Less): Changes during the year - -Balance as at 31st March,2018 30,00,000 3,00,00,000

7.5 OTHER FINANCIAL ASSETS




Interest accrued on Fixed Deposits with Banks &Other Deposits 6,38,021 5,32,545 4,62,099

Discount Receivable 2,59,400 14,08,373 10,56,051

Total 8,97,421 19,40,918 15,18,150

8 OTHER CURRENT ASSETS




TDS Refund Receivable 3,60,814 3,60,814 4,39,326

Prepaid expenses 31,76,237 25,99,612 28,21,742

Advance to Trade Payables 15,81,511 15,76,361 10,96,071

Cenvat credit receivable 1,80,930 20,57,765 19,06,716

Interest Subsidy Receivable 39,04,316 - -

Income Tax Refunds Due 7,38,402 - -

Service Tax credit receivable - 33,26,526 19,92,933

Total 99,42,211 99,21,078 82,56,788

9 EQUITY SHARE CAPITAL




Authorised

1,00,00,000 Equity Shares of Rs.10/- each 10,00,00,000 10,00,00,000 10,00,00,000

Issued, Subscribed and Paid up

30,00,000 Equity Shares of Rs. 10/- each fully paid up 3,00,00,000 3,00,00,000 3,00,00,000

Total 3,00,00,000 3,00,00,000 3,00,00,000

Notes:(i) Reconciliation of number of shares outstanding at the beginning and end of the year:

9.1 The Company has only one class of equity shares having a par value of Rs. 10 per share. Each Shareholder is eligible for one vote per share

9.2 The Paid-up Capital includes 1,500,000 Equity Shares of Rs.10 each allotted as fully paid up Bonus shares by capitalising Rs.5,000,000 out of General Reserve and Rs.10,000,000 out of Revaluation Reserve prior to listing of Company's Equity Shares.

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

Ecoplast Limited

118

Mrs Amita J.DesaiAs at 1st April 2016 18.06% 5,41,846As at 31st March, 2017 18.06% 5,41,846As at 31st March, 2018 18.07% 5,42,146

Mrs Charulata N.PatelAs at 1st April 2016 12.59% 3,77,783As at 31st March, 2017 12.80% 3,83,911As at 31st March, 2018 12.80% 3,83,911

Silver Stream Properties LLPAs at 1st April 2016 15.89% 4,76,827As at 31st March, 2017 15.89% 4,76,827As at 31st March, 2018 15.89% 4,76,827

9.6 Details of shares held by each shareholder holding more than 5% shares in the Company:

Equity share of Rs. 10 each fully paid up with voting rightsNumber of fully

paid equity shares% Holding

10 OTHER EQUITY




(a) Securities premium Reserve


Closing Balance 3,00,00,000 3,00,00,000 3,00,00,000

(b) General reserve


Add: Transferred from surplus in Statement of Profit and Loss 25,00,000

Closing Balance 5,07,81,315 5,07,81,315 5,07,81,315

(c) Retained Earnings


Add: Profit for the year 3,50,95,835 2,95,96,932 2,60,01,766

16,42,82,759 12,91,86,923 10,75,06,086

Less: Appropriations

Transferred to General reserve - - 25,00,000

Payment of final Dividend to equity shareholders (Rs1.20 per share) 36,00,000 - -

Payment of Dividend distribution tax on final dividend 7,32,875 - -

Payment of Interim dividend - - 45,00,000

Payment of Dividend distribution tax on interim dividend - - 9,16,094

Closing Balance 15,99,49,884 12,91,86,923 9,95,89,992

(d) Other Comprehensive income

Balance as at beginning of the year (18,74,765)

Add:Remeasurement of Net defined benefit liability/(asset)(net of tax) 3,46,294 (18,74,765)

(15,28,471) (18,74,765) -

Total 23,92,02,728 20,80,93,474 18,03,71,307

9.4 The Company declares and pays dividends in Indian rupees. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting except in case of interim dividend.

9.5 During the Year there are no Changes in Number of Shares outstanding at the end of the reporting period in comparison to number of Shares Outstanding at the beginning of the reporting period.


119

10.1 Securities premiumSecurities reserve is used to record the Premium on issue of shares. This reserve is utilized in accordance with the provisions of the Act.

10.2 General ReserveThe general reserve is used from time to time to transfer profits from retained earnings for appropriations purposes. As the general reserve is created by a transfer from one component of equity to another and is not an item of other comprehensive income, items included in the general reserve will not be reclassified subsequently to profit or loss.

10.3 Retained earningsRetained earnings are the profits that the Company has earned till date, less any transfers to the general reserve, dividends or other distributions paid to shareholders

10.4 Other Comprehensive incomeThese are actuarial gains/ losses on employee benefit obligations.

11 NON CURRENT BORROWINGS




Secured

Term Loans

Bank of Baroda Term Loan IV 7,14,430 24,78,282 42,40,698

Bank of Baroda Coporate Loan V 40,72,140 86,67,577 1,77,55,726

Bank of Baroda Term Loan VI 37,21,920 57,25,723

Bank of Baroda Term Loan VII 1,01,97,555 1,37,01,233

Unsecured

Car Loan 1,36,902 6,00,149

Inter Corporate Deposits 60,58,938 56,69,738

Total 1,87,06,045 3,67,68,655 2,82,66,311

Details:

11.1 The above are valued at Amortized cost.

11.2 The above Loans are Secured by Equitable Mortgage of Land & Factory Building of the Company at Abrama-Valsad, Office Premises at Andheri (East) Mumbai & hypothecation of Plant and Machineries, Electrical Installations, Furniture & Fixtures, Office Equpments and Other Movable Fixed Assets of the Company, both present and future and hypothecation of raw materials ,stock in process, Stores & Spares, packing materials and finished goods and book debts of the Company both present and future and further secured by personal guarantee of Managing Director.

11.3 Interest Rate Profile of Term Loans & Deposits are set out as below:

Particulars Rate of Interest(p.a.) Amount in Rs.

Term Loan from Bank-IV 10.00% 24,79,000

Corporate Loan from Bank-V 10.00% 88,45,000

Term Loan from Bank-VI 10.00% 57,27,000

Term Loan from Bank-VII 10.00% 1,37,04,000

3,07,55,000

11.4 Maturity Profile of Term Loans & Deposits is set out below:

ParticularsMaturity Profile (Amount in `)

Term Loan from Bank-IV 24,79,000 - -

Corporate Loan from Bank-V 88,45,000 - -

Term Loan from Bank-VI 40,08,000 17,19,000 -

Term Loan from Bank-VII 70,08,000 66,96,000

Car Loan under Hire Purchase

1-2 years 3-4 years > 4 years

Ecoplast Limited

120

12 PROVISIONS






Provision for gratuity 9,22,446

Total 57,63,038 43,00,200 34,75,187

13 DEFERRED TAX LIABILITIES (NET)





On difference between book balance and tax balance of fixed assets 1,29,69,565 1,31,18,441 1,22,70,809

On Account of Retiring Gratuity -

Investments - -

Remeasurement of Defined benefit plans (OCI)

Loan to subsidiary -

Financial Guarantee -

Amortisation of government grant 1,02,767

-

Tax effect of items constituting deferred tax liability 1,30,72,332 1,31,18,441 1,22,70,809

-

Tax effect of items constituting deferred tax assets -

Provision for compensated absences, gratuity and other employee benefits 28,36,210 29,33,812 23,68,556

Provision for doubtful debts / advances (5,81,180) 3,45,764 2,95,014

Provision for diminution in the value of investments 15,86,049 15,86,049 15,86,049

Loan to subsidiary - - -

Fair valuation of Loan from holding Company (4,28,862)

Financial Guarantee - - -

Tax effect of items constituting deferred tax assets 34,12,217 48,65,624 42,49,619

-

Net deferred tax Liability / (Asset) (96,60,115) 82,52,817 80,21,190

14 OTHER NON-CURRENT LIABILITIES




Deferred Grant income 28,49,201 31,60,023 34,70,845

Total 28,49,201 31,60,023 34,70,845


121

15.2 TRADE PAYABLES




Trade payables:

Micro, Small and Medium Enterprises 2,99,989 6,71,965 4,93,582

Trade Payable to Related Party 5,22,911 9,47,908 -

Others 8,69,86,071 10,40,50,349 9,33,99,092

Total 8,78,08,971 10,56,70,222 9,38,92,674

(i) Disclosure under the Micro, Small and Medium Enterprises Development Act, 2006 :

Amount due to Micro, Small and Medium Enterprises as on 31st March, 2018 are disclosed on the basis of information

available with the Company regarding status of the suppliers is as follows :

ParticularsAs at



1st April, 2016

Principal Amount due and remaining unpaid 36,551 6,71,165 4,93,582

Interest due on above and the unpaid interest 402 25,228 15,674

Interest paid during the year - - -

Payment made beyond the appointed day during the year 2,22,421 1,27,147 7,86,092

Interest due and payable for the period of delay 365 361 419

Interest accrued and remaining unpaid 767 25,589 16,093

Amouont of further interest remaining due and payable in succeeding years 26,356 25,589 22,856

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

15.1 BORROWINGS (SHORT TERM)

Particulars As at

31st March,2018

As at

31st March,2017


Loans repayable on demand

From banks

Secured(10%) 6,61,16,945 8,99,06,756 6,98,69,363

From Others - Unsecured

Inter Corporate Deposits(11.5%) 80,00,000 80,00,000 80,00,000

Car Finance under H.P. Agreement - 4,57,546 11,29,155

Total 7,41,16,945 9,83,64,302 7,89,98,518

(i) "(Secured by hypothecation of inventories, book debts of the Company both present & futures and collaterally secured by

equitable mortgage of Company's Land and Factory Buildings at Abrama-Valsad and Office Premises at Andheri (East)

Mumbai, hypothecation of Plant and Machineries, Electrical Installations, Furniture & Fixtures, Office Equpments and

guaranteed by Managing Director)”

(ii) The above are valued at Amortized cost.

Ecoplast Limited

122

15.3 OTHER FINANCIAL LIABILITIES




Current maturities of long-term Secured Debts (Refer Note No. 11) 1,19,28,000 1,19,28,000 77,64,000

Unclaimed dividends 8,65,347 8,40,530 10,25,907

Unclaimed matured deposits and interest accrued thereon 18,710 23,022 1,41,482

Financial guarantee obligation 1,01,626 - -

Current maturities of long-term Secured Debts-Car Loan Instalments - -

- -

Total 1,29,13,683 1,27,91,552 89,31,390

16 OTHER CURRENT LIABILITIES




Deferred Grant income 3,10,822 3,10,822 3,10,822

Other payables

Statutory dues payable 25,09,502 32,11,019 36,17,066

Advances from customers 21,16,975 25,63,422 11,53,801

Others -Net Salaries & Wages Payable 6,35,530 7,08,170 7,53,012

Total 55,72,829 67,93,433 58,34,701

17 PROVISIONS





Provision for bonus 21,35,149 17,78,902 16,93,824


Provision for gratuity 9,45,542 14,23,393 5,81,108

Total 37,63,376 45,73,198 36,88,580

18 REVENUE FROM OPERATIONS

Particulars

Sale of products

Manufactured goods

Plastic Film 1,03,15,56,326 1,17,37,50,986

Others 60,23,177 -

Traded goods

Others 3,31,88,933 -

Other operating revenues

Sale of Scrap 19,29,748 15,33,393

Total 1,07,26,98,184 1,17,52,84,379




123

Footnote:

Impact of implementation of Goods and Services Tax (GST) on the financial statements

In accordance with Ind AS 18 on “Revenue” and Schedule III to the Companies Act, 2013, Sales for the previous year ended 31

March 2017 and for the period 01 April to 30 June 2017 were reported gross of Excise Duty and net of Value Added Tax (VAT)/ Sales

Tax. Excise Duty was reported as a separate expense line item. Consequent to the introduction of Goods and Services Tax (GST)

with effect from 1 July 2017, VAT/Sales Tax, Excise Duty etc. have been subsumed into GST and accordingly the same is not

recognised as part of sales as per the requirements of Ind AS 18. This has resulted in lower reported sales in the current year in

comparison to the sales reported under the pre-GST structure of indirect taxes. With the change in structure of indirect taxes,

expenses are also being reported net of taxes. Accordingly, Financial statements for the year ended 31 March 2018 and in

particular, Sales, absolute expenses, elements of Working Capital (Inventories, Trade payable, other current assets/current

liabilities etc.) and ratios in percentage of sales, are not comparable with the figures of the previous year.

19 OTHER INCOME


Interest income

Interest from banks on Fixed Deposits 1,55,410 3,22,671

Interest Receiced-Security Deposit-APDCL 1,19,200

Interest on Deposit with Dakshin Gujarat Vij Co Ltd. & Others 5,12,318 4,63,662

Interest on Employees Loan 1,44,984 86,202

Interest on loan to subsidiary - -

Interest subsidy 39,04,316 -

Other non-operating income

Profit on sale of fixed assets 1,49,579 1,20,187

Liabilities / provisions no longer required written back (net) 25,67,986 3,31,135

Insurance Claim Received 3,10,758 5,12,303

Gain on foreign currency transactions and translation (net) 58,99,364 56,96,880

Miscellaneous income 11,02,009 12,20,425

Sundry Creditors W.back/ W.off 97,671 -

Export Incentive - MEIS Duty Script 49,20,182 -

Capital subsidy - -

Fair Valuation of financial guarantee - -

Amortisation of government grant - 3,10,822

Total 1,98,83,777 90,64,288


20 COST OF MATERIALS CONSUMED


Opening Stock 5,52,32,055 5,03,29,329

Add: Purchases 76,78,45,782 79,53,19,011

Less: Closing Stock (6,21,46,519) (5,52,32,055)

Purchases Includes Stock in Trade 2,63,55,529 2,16,95,716

Total Cost of materials consumed 76,09,31,318 79,04,16,285


Ecoplast Limited

124

21 CHANGES IN INVENTORIES OF FINISHED GOODS AND WORK IN PROGRESS


Inventories at the end of the year:

Finished goods 2,17,46,678 1,29,01,420

Work-in-progress 1,23,03,339 1,49,24,043

3,40,50,017 2,78,25,463

Inventories at the beginning of the year: -

Finished goods 1,28,58,700 1,17,38,238

Work-in-progress 1,49,24,043 1,20,11,490

2,77,82,743 2,37,49,728

Add/(Less):- Variation in excise duty on opening and closing stock of finished goods - (1,38,591)

-

Net (increase) / decrease (62,67,274) (39,37,144)


22 EXCISE DUTY


Excise duty (Gross) 3,54,27,148 12,33,82,698

Total 3,54,27,148 12,33,82,698


23 EMPLOYEE BENEFIT EXPENSES


Salaries, Wages, Bonus and Other Allowances 6,73,33,929 6,24,02,815

Contributions to Provident and other funds 88,46,030 67,20,079

Staff Welfare expenses 18,45,916 14,82,901

Total 7,80,25,875 7,06,05,795


Footnote:

Contribution to Provident and other funds includes contribution to Provident fund for directors Rs. 6,76,800 (For 31st March, 2017:

Rs. 6,04,800; For 1st April, 2016: Rs.5,40,000)

24 FINANCE COSTS


Interest expense 1,34,95,829 1,70,28,055

Other Borrowing costs 24,44,846 30,00,432

Total 1,59,40,675 2,00,28,487



125

25 OTHER EXPENSES


Consumption of Stores and Spare parts 14,38,749 31,04,823

Consumption of Packing Materials 2,08,65,432 1,99,87,182

Consumption of Printing Cylinders 24,76,529 16,94,199

Power and fuel 4,79,90,704 4,77,63,811

Conversion Charges Paid 9,07,927 1,67,086

Repairs and Maintenance - Buildings 22,22,045 14,66,789

Repairs and Maintenance - Machinery 77,78,535 65,55,768

Repairs and Maintenance - Others 8,73,634 8,62,821

Insurance 25,90,699 25,69,925

Rates and taxes 5,56,429 21,67,057

Communication 8,91,313 8,28,682

Travelling and Conveyance 65,23,276 43,34,048

Printing and Stationery 10,81,099 11,33,035

Freight and forwarding 1,26,78,054 1,16,00,732

Sales Commission 5,08,265 2,08,841

Sales discount - 3,00,648

Business promotion 64,399 87,013

Donations and contributions 3,50,600 3,01,100

Motor Car Expenses 8,34,686 7,91,851

Security Charges 18,17,909 16,80,668

Royalty Paid 44,92,543 53,80,400

Directors Sitting Fees 9,00,000 8,20,000

Commission to Non-Executive Directors 4,46,231 2,90,385

Legal and Professional 69,01,008 31,34,250

Payments to Auditors 8,08,722 11,02,141

Rent including lease rentals 99,788 69,678

Other Miscellaneous Expenses 82,86,130 57,66,422

Total 13,43,84,705 12,41,69,354



Payments to the auditors comprises

(a) To statutory auditors

Audit Fees 4,20,000 4,20,000

Taxation Matters 60,000 70,000

Company Law Matters - 70,000

Tax Audit Fees - 70,000

Certification and Other Services 2,70,894 2,99,423

Reimburesment of Expenses 57,828 1,72,718

Total 8,08,722 11,02,141


Ecoplast Limited

126

a. Equity Share Capital:

Particulars

Balance as at April, 2016 3,00,00,000

Changes in equity share capital during the year 2016-17 -


Changes in equity share capital during 2017-18 -


Amount

STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 31ST MARCH, 2018

Amount (Rs.)

b. Other Equity:

Particulars

As at 1st April, 2016 5,07,81,315 3,00,00,000 9,95,89,992 18,03,71,307

Profit for the year - - 2,95,96,932 2,95,96,932

Other comprehensive income for the year - - -


liability/asset, net of tax effect - - (18,74,765) (18,74,765)

Additions/deletions during the year - -

-

As at 31st March, 2017 5,07,81,315 3,00,00,000 12,91,86,923 (18,74,765) 20,80,93,474

Profit for the year 3,50,95,835 3,50,95,835

Other comprehensive income for the year -


liability/asset, net of tax effect 3,46,294 3,46,294

-

Corporate Dividend (36,00,000) (36,00,000)

Corporate Dividend Tax (7,32,875) (7,32,875)

-

As at 31st March, 2018 5,07,81,315 3,00,00,000 15,99,49,884 (15,28,471) 23,92,02,728

Reserves and Surplus

GeneralReserve

Total EquityOther

ComprehensiveIncome (OCI)

SecuritiesPremium

RetainedEarnings

26. FIRST-TIME ADOPTION OF Ind AS:

These are the Company’s first financial statements prepared in accordance with Ind AS.

The Company has adopted Indian Accounting Standards (Ind AS) notified by the Ministry of Corporate Affairs with effect from

1st April, 2017, with a transition date of 1st April, 2016. Ind AS 101 - First time adoption of Indian Accounting Standards

requires that all Ind AS's and interpretations that are issued an effective for the first Ind AS financial statements which is for the

year ended 31st March, 2018 for the Company, be applied retrospectively and consistently for all financial years presented.

Set out below are the Ind AS 101 optional exemptions availed as applicable and mandatory exceptions applied in the transition

from previous GAAP to Ind AS.

A. Optional Exemptions availed:

(a) Deemed Cost

The Company has elected to continue with the carrying value for all of its property, plant and equipment and Intangible assets

as recognized in the financial statement as at 31.03.2016, measured as per the previous GAAP and use that as its deemed

cost as at the transition date.


127

(b) Investments in subsidiaries and joint ventures

The Company has elected to continue with the carrying amount of investment as recognized in the financial statement as at

31.03.2016, measured as per the previous GAAP and used that as its deemed cost as at the transition date.

B. Applicable Mandatory Exceptions

(a) Estimates

An entity’s estimates in accordance with Ind AS at the date of transition to Ind AS shall be consistent with estimates made for

the same date in accordance with previous GAAP (after adjustments to reflect any difference in accounting policies).

Ind AS estimates as at 1 April 2016 are consistent with the estimates as at the same date made in conformity with previous

GAAP. The Company made estimates for following items in accordance with Ind AS at the date of transition as these were not

required under previous GAAP:

(i) Impairment of financial assets based on expected credit loss model.

(b) Derecognition of financial assets and financial liabilities

Ind AS 101 requires a first time adopter to apply the derecognition provisions of Ind AS 109 prospectively for transactions

occurring on or after the date of transition to Ind AS. However, Ind AS 101 allows the first time adopter to apply the de-

recognition requirement in Ind AS 109 retrospectively from the date to the entities choosing, provided that the information

needed to apply Ind AS 109 to financial assets and financial liabilities to de-recognized as a result of past transactions was

obtained at the time of initially accounting for those transactions. The Company has elected to apply the de-recognition

provision of Ind AS 109 prospectively from the date of transition to Ind AS.

(c) Classification and measurement of financial assets

As required under Ind AS 101 the Company has assessed the classification and measurement of financial assets on the basis

of the facts and circumstances that exist at the date of transition to Ind AS. Where practicable, measurement of financial

assets accounted at amortized cost has been done retrospectively.

(d) Impairment of Financial Assets

Ind AS 101 requires an entity to apply the Ind AS requirements retrospectively if it is practicable without undue cost and effort to

determine the credit risk that debt financial instruments where initially recognized. The company has measured impairment

losses on financial assets as on the date of transition i.e. 1st April, 2016 in view of cost and effort.

C. Transition to Ind AS - Reconciliations

The following reconciliations provide a quantification of the effect of significant differences arising from the transition from

previous GAAP to Ind AS as required under Ind AS 101:

(i) Reconciliation of Balance sheet as at 1st April, 2016 (Transition Date);

(ii) Reconciliation of Balance sheet as at 31st March, 2017;

(iii) Reconciliation of Total Comprehensive Income for the year ended 31st March, 2017;

(iv) Reconciliation of Total Equity as at 1st April, 2016 and as at 31st March, 2017;

(v) Adjustments to Cash Flow Statements as at 31st March, 2017

The presentation requirements under previous GAAP differs from Ind AS, and hence, previous GAAP information has been

regrouped for ease of reconciliation with Ind AS. The re-grouped previous GAAP information is derived from the Financial

Statements of the Company prepared in accordance with previous GAAP.

Ecoplast Limited

128

(i)

& (

ii)

Reco

ncilia

tio

n o

f B

ala

nce s

heet

as a

t 1st

Ap

ril, 2

016 (

Tra

nsit

ion

Date

) an

d 3

1st

Marc

h, 2017:

Pa

rtic

ula

rs

As

at 3

1st M

arch

, 201

7(E

nd o

f the

last

per

iod

pres

ente

d un

der

prev

ious

GA

AP

)N

ote

sP

rev

iou

sG

AA

P

Am

ou

nt

as

pe

r In

d A

Sb

ala

nc

e s

he

et

Effe

cts

of tr

ansi

tion

to In

d A

S (in

clud

ing

recl

assi

ficat

ions

)

As

at 1

st A

pri

l, 20

16 (

Dat

e o

f tr

ansi

tio

n)

Pre

vio

us

GA

AP

Am

ou

nt

asp

er In

d A

Sb

alan

ce s

hee

t

Effe

cts

of tr

ansi

tion

to In

d AS

(inc

ludi

ngre

clas

sific

atio

ns)

(1)

No

n-c

urr

en

t assets

(a)

Pro

pert

y, P

lant

and E

quip

ment

14

,47

,38

,17

1

-

14

,47

,38,1

71

12,6

2,3

3,5

24

- 12,6

2,3

3,5

24

(b)

Capita

l work

-in-p

rogre

ss 3

8,4

7,3

66

-

38

,47,3

66

6,4

0,9

59

-

6,4

0,9

59

(c)

Goodw

ill 9

4,9

5,6

71

1

8,9

9,1

34

1

,13

,94,8

05

1,1

3,9

4,8

05

-

1,1

3,9

4,8

05

(d)

Fin

ancia

l Ass

ets

(i) L

oans

85

,87

,12

0

-

85

,87,1

20

60,1

6,5

02

-

60,1

6,5

02

(ii) O

thers

(to

be s

peci

fied)

-

-

-

-

-

-(e

) D

efe

rre

d t

ax

ass

ets

(net)

-

-

-

-

-

-(f

) O

ther

non-c

urr

ent

ass

ets

38

,77

,64

5

-

38

,77,6

45

53,3

2,9

10

-

53,3

2,9

10

To

tal n

on

-cu

rren

t a

ssets

17

,05

,45

,97

3

18

,99

,13

4

17

,24

,45,1

07

14,9

6,1

8,6

99

- 14,9

6,1

8,6

99

(2)

Cu

rren

t assets

(a)

Inve

nto

ries

12

,34

,54

,70

3

-

12

,34

,54,7

03

10,5

6,6

3,4

51

- 10,5

6,6

3,4

51

(b)

Fin

anci

al A

ssets

(i)

Tra

de R

ece

ivab

les

20

,63

,96

,43

2

(2

5,9

2,1

09

) 2

0,3

8,0

4,3

23

17,5

7,7

7,5

45

(22,6

1,9

19)

17,3

5,1

5,6

26

(ii) C

ash

and c

ash

equiv

ale

nts

28

,31

,82

4

-

28

,31,8

24

16,5

1,4

22

-

16,5

1,4

22

(iii)

Bank

bala

nce

s 3

3,1

1,6

58

-

33

,11,6

58

37,6

4,1

86

-

37,6

4,1

86

(iv)

Loans

10

,58

,26

2

-

10

,58,2

62

9,6

2,3

77

-

9,6

2,3

77

(v)

Oth

er

financi

al a

ssets

19

,40

,91

8

-

19

,40,9

18

15,1

8,1

50

-

15,1

8,1

50

(c)

Oth

er

curr

ent

ass

ets

99

,21

,07

8

-

99

,21,0

78

82,5

6,7

88

-

82,5

6,7

88

To

tal cu

rren

t assets

34

,89

,14

,87

5

(2

5,9

2,1

09

) 3

4,6

3,2

2,7

66

29,7

5,9

3,9

19

(22,6

1,9

19)

29,5

3,3

2,0

01

TO

TA

L A

SS

ET

S5

1,9

4,6

0,8

48

(

6,9

2,9

75

) 5

1,8

7,6

7,8

73

44,7

2,1

2,6

19

(22,6

1,9

19)

44,4

9,5

0,7

00

EQ

UIT

Y A

ND

LIA

BIL

ITIE

SE

qu

ity

(a)

Equity

Share

capita

l 3

,00

,00

,00

0

-

3,0

0,0

0,0

00

3,0

0,0

0,0

00

-

3,0

0,0

0,0

00

(b)

Oth

er

Equity

21

,22

,89

,35

1

(4

1,9

5,8

77

) 2

0,8

0,9

3,4

74

18,6

4,1

4,8

92

(60,4

3,5

85)

18,0

3,7

1,3

07

Tota

l equity

24

,22

,89

,35

1

(4

1,9

5,8

77

) 2

3,8

0,9

3,4

74

21,6

4,1

4,8

92

(60,4

3,5

85)

21,0

3,7

1,3

07

Lia

bilit

ies

(1)

No

n-c

urr

en

t li

ab

ilit

ies

(a)

Fin

anci

al L

iabili

ties

(i) B

orr

ow

ings

3,6

7,6

8,6

55

-

3,6

7,6

8,6

55

2,8

2,6

6,3

11

-

2,8

2,6

6,3

11(b

) P

rovi

sions

43

,00

,20

0

-

43

,00,2

00

34,7

5,1

87

-

34,7

5,1

87

(c)

Defe

rre

d t

ax

liabili

ties

(Net)

82

,20

,75

9

32

,05

8

82

,52,8

17

80,2

1,1

90

-

80,2

1,1

90

(d)

Oth

er

non-c

urr

ent

liabili

ties

-

31

,60

,02

3

31

,60,0

23

-

34,7

0,8

45

34,7

0,8

45

To

tal n

on

cu

rren

t li

ab

ilit

ies

4,9

2,8

9,6

14

3

1,9

2,0

81

5

,24

,81,6

95

3,9

7,6

2,6

88

34,7

0,8

45

4,3

2,3

3,5

33

(2)

Cu

rren

t liab

ilit

ies

(a)

Fin

ancia

l Lia

bili

ties

(i)

Borr

ow

ings

9,8

3,6

4,3

02

-

9,8

3,6

4,3

01

7,8

9,9

8,5

18

-

7,8

9,9

8,5

17

(ii) T

rade p

aya

ble

s 1

0,5

6,7

0,2

22

-

10

,56

,70,2

21

9,3

8,9

2,6

74

-

9,3

8,9

2,6

74

(iii)

Oth

er

financi

al l

iabili

ties

1,2

7,9

1,5

52

-

1,2

7,9

1,5

52

89,3

1,3

90

-

89,3

1,3

89

(b)

Oth

er

curr

ent

liabili

ties

64

,82

,611

3

,10

,82

2

67

,93,4

33

55,2

3,8

79

3,1

0,8

22

58,3

4,7

01

(c)

Pro

visi

ons

45

,73

,19

8

-

45

,73,1

98

36,8

8,5

80

-

36,8

8,5

80

(d)

Curr

ent Ta

x Lia

bili

ties

(Net)

-

-

-

-

-

-To

tal cu

rren

t li

ab

ilit

ies

22

,78

,81

,88

4

3,1

0,8

22

2

2,8

1,9

2,7

06

19,1

0,3

5,0

41

3,1

0,8

22

19,1

3,4

5,8

61

TO

TA

L E

QU

ITY

AN

D L

IAB

ILIT

IES

51

,94

,60

,85

0

(6

,92

,97

5)

51

,87

,67,8

74

44,7

2,1

2,6

21

(22,6

1,9

19)

44,4

9,5

0,7

00


129

(iii) Reconciliation of Total Comprehensive Income for the year ended 31st March, 2017:

Particulars

I Revenue From Operations 1,17,52,84,379 - 1,17,52,84,379

II Other Income D 87,53,466 3,10,822 90,64,288

III Total Income (I+II) 1,18,40,37,845 3,10,822 1,18,43,48,667

IV EXPENSES

Cost of materials consumed 79,04,16,285 - 79,04,16,285

Changes in inventories of finished goods,

stock in trade and work-in-progress (39,37,144) - (39,37,144)

Excise Duty 12,33,82,698 - 12,33,82,698

Employee benefits expense 7,06,05,795 - 7,06,05,795

Finance costs 2,00,28,487 - 2,00,28,487

Depreciation and amortization expense 2,13,26,677 - 2,13,26,677

Other expenses A, E 12,57,38,298 (15,68,944) 12,41,69,354

Total expenses (IV) 1,14,75,61,096 (15,68,944) 1,14,59,92,152

V Profit before tax (III-IV) 3,64,76,749 18,79,766 3,83,56,515

VI Tax expense:

(1) Current tax 89,33,000 - 89,33,000

(2) Deferred tax (2,66,266) 32,058 (2,34,208)

(3) Tax in respect of Earlier Years 60,791 - 60,791

VII Profit for the year (V-VI) 2,77,49,224 18,47,708 2,95,96,932

VIII Other Comprehensive Income

A (i) Items that will not be reclassified to profit or loss B, F (14,08,930) - (14,08,930)

(ii) Income tax relating to items that will not be reclassified to profit or loss (4,65,835) - (4,65,835)

IX Total Comprehensive Income for the period (XIII + XIV)

(Comprising Profit (Loss) and Other Comprehensive Income for the period) 2,58,74,459 18,47,708 2,77,22,167

X Earnings per equity share (Nominal value per share Rs.10 each)

(1)Basic 8.62 0.00 9.87

(2)Diluted 8.62 0.00 9.87

PreviousGAAP

Effects oftransitionto Ind AS

Amountas per IndAS SOP&L

SrNo

Notes

Reconciliation of Total Comprehensive Income:


Net Profit as per Previous GAAP 2,58,74,459

(i) Actuarial (gain)/loss on employee defined benefit plans recognized

in Other Comprehensive Income B 14,08,930

(ii) Loss allowance of trade receivables as per expected credit loss model A (3,30,190)

(iii) Amortisation of government grant D 3,10,822

(iv) Deferred tax impact C 4,33,777

(v) Reversal of impairment on goodwill E 18,99,134

Net profit after tax as per Ind AS 2,95,96,932

Other Comprehensive Income (net of taxes) (18,74,765)

Total Comprehensive income as per Ind AS 2,77,22,167

Note

Ecoplast Limited

130

(iv) Reconciliation of Total Equity as at 1st April, 2016 and as at 31st March, 2017:

Particulars NoteAs at


1st April, 2016

Equity as per Previous GAAP 24,22,89,351 21,64,14,892

(i) Loss allowance of trade receivables as per expected credit loss model A (25,92,109) (22,61,919)

(ii) Deferred tax impact C (32,058) 0

(iii) Amortisation of government grant D (34,70,845) (37,81,667)

(iv) Reversal of goodwill impairment/amortisation E 18,99,134

Total Impact (41,95,877) (60,43,586)

Total Equity as per Ind AS 23,80,93,474 21,03,71,306

(v) Adjustments to the Statement of Cash Flows as at 31st March, 2017

The Ind AS adjustments are non cash adjustments. Consequently, Ind AS adoption has no impact on the net cash flow for the

year ended 31st March, 2017 as compared with the previous GAAP

Notes to reconciliations:-

A Trade receivables

Under previous GAAP, the Company had recognized provision on trade receivables based on the expectation of the Company.

Under Ind AS the Company provides loss allowance on receivables based on the Expected Credit Loss (ECL) model which is

measured following the "simplified approach" at an amount equal to the lifetime ECL at each reporting date.



Carrying value of Allowance for doubtful trade receivables using ECL model (22,61,919) -

Increase in the provision during the year (3,30,190) (22,61,919)

C Deferred Tax

"Under previous GAAP, deferred tax accounting was done using the income statement approach, which focuses on differences between taxable profits and accounting profits for the period. Under Ind AS, accounting of deferred taxes is done using the Balance sheet approach, which focuses on temporary differences between the carrying amount of an asset or liability in the balance sheet and its tax base.”

For detailed working refer note 13 in the financial statement

D Government Grant

"The Company had received Government grant against a capital asset in the year 2013-14. Under previous GAAP the same was accounted for in Capital Reserve. Under Ind AS, the grant needs to be recognized as deferred income over the useful life of the capital asset.”


Actuarial gains/(loss) (14,08,930)

Tax effect thereon (4,65,835)

B Remeasurement of defined benefit liabilities

Under previous GAAP, actuarial gains and losses were recognized in profit or loss.

Under Ind AS, the actuarial gains and losses form part of remeasurement of the net defined benefit liability/asset which is

recognized in other comprehensive income. Consequently, the tax effect of the same has also been recognized in other

comprehensive income under Ind AS instead of profit or loss.


131

E Impairment/ Amortisation of Goodwill on consolidation

"Under previous GAAP, goodwill used to be impaired/amortisedUnder Ind AS, Company has elected to continue with the

carrying value for all of its property, plant and equipment and Intangible assets as recognized in the financial statement as at

31.03.2016, measured as per the previous GAAP and use that as its deemed cost as at the transition date.

Accordingly,impairment provided as on 31.03.17 has been reversed”

F Other Comprehensive Income

"Under previous GAAP, there was no concept of other comprehensive income. Under Ind AS specified items of income,

expense, gains or losses are required to be presented in other comprehensive income. “

27 Earnings per share (EPS)

Basic EPS amounts are calculated by dividing the profit for the year attributable to equity holders of the Company by the

weighted average number of Equity shares outstanding during the year.

Diluted EPS amounts are calculated by dividing the profit attributable to equity holders of the Company by the weighted

average number of Equity shares outstanding during the year.


Profit attributable to equity holders of the company for basic and

diluted earnings per share 3,50,95,836 2,95,96,932


(i) Profit attributable to Equity holders of Company


Number of issued equity shares 30,00,000 30,00,000

Nominal Value per share 10.00 10

Weighted average number of shares at 31st March for basic and diluted

earnings per share 30,00,000 30,00,000

Basic and Diluted earnings per share (in Rs) 11.70 9.87


(ii) Weighted average number of ordinary shares


Current tax expense

Current year 1,67,57,000 89,33,000

Short/(Excess) provision of earlier years - 60,791

Deferred tax expense

Origination and reversal of temporary differences 6,87,719 (2,34,208)

Tax expense recognised in the income statement 1,74,44,719 87,59,583


28 Tax Expense

(a) Amounts recognised in profit and loss

Ecoplast Limited

132


Items that will not be reclassified to profit or loss

Remeasurements of the defined benefit plans 2,60,248 86,046 3,46,294 (14,08,930) (4,65,835) (18,74,765)

Equity Instruments through Other Comprehensive Income - -

2,60,248 86,046 3,46,294 (14,08,930) (4,65,835) (18,74,765)


(b) Amounts recognised in other comprehensive income

Before TaxTax

(expense) Net of Tax Before TaxTax

(expense) Net of Tax


Profit before tax 5,25,40,555 3,83,56,515

Less: Profit of subsidiary on which tax is not payable (55,72,453) (56,91,721)

Net profit on which tax is payable 4,69,68,102 3,26,64,793

Tax using the Company’s domestic tax rate 33.06% 1,55,27,654 33.06% 1,07,98,981

Tax effect of:

Expenses not deductible for tax purposes 2.61% 12,27,929 -5.72% (18,66,855)

Income exempt from Income taxes

Tax due to change in tax rate

Others 1.47% 6,89,135 -0.53% -1,72,542

Effective income tax rate 37.1% 1,74,44,719 26.8% 87,59,583


(c) Reconciliation of effective tax rate

Amounts% Amounts%

(d) Movement in deferred tax

Particulars



tax balance of fixed assets 1,31,18,441 (1,48,876) 1,29,69,565 1,29,69,565

Amortisation of government grant 1,02,767 1,02,767

Provision for compensated absences, gratuity and

other employee benefits (29,33,812) 1,83,648 (86,046) (28,36,210) 28,36,210

Provision for doubtful debts / advances (3,45,764) 9,26,944 5,81,180 (5,81,180)

Provision for diminution in the value of investments (15,86,049) - (15,86,049) 15,86,049

Tax assets (Liabilities) 82,52,817 10,64,482 (86,046) 92,31,253 38,41,079 1,29,69,565

Reversal of Opening DTL - - - -

Tax assets (Liabilities) (Net) 82,52,817 10,64,482 (86,046) 92,31,253 38,41,079 1,29,69,565




Recognizedin OCI



Recognizeddirectlyin equity


133

Particulars

As at 1st April, 2016



tax balance of fixed assets 1,22,70,809 8,47,632 - 1,31,18,441 1,31,18,441

Provision for compensated absences, gratuity and

other employee benefits (23,68,556) (10,31,090) 4,65,835 (29,33,812) 29,33,812

Provision for doubtful debts / advances (2,95,014) (50,750) - (3,45,764) 3,45,764

Provision for diminution in the value of investments (15,86,049) - - (15,86,049) 15,86,049

Tax assets (Liabilities) 80,21,190.03 (2,34,208) 4,65,835 82,52,817 48,65,624 1,31,18,441

Reversal of Opening DTL - - - -

Tax assets (Liabilities) (Net) 80,21,190.03 (2,34,208) 4,65,834.53 82,52,817 48,65,624.43 1,31,18,441




Recognizedin OCI



Recognizeddirectlyin equity

29 Financial instruments

A. Capital Management:

The Company’s policy is to maintain a strong capital base so as to ensure that the Company is able to continue as going

concern to sustain future development of the business. The capital structure of the Company is based on management’s

judgement of its strategic and day-to-day needs with a focus on total equity so as to maintain investor, creditors and market

conditions.

Its guiding principles

i) Maintenance of financial strength to ensure the highest ratings;

ii) Ensure financial flexibility and diversify sources at financing;

iii) Manage Company exposure in forex to mitigate risks to earnings;

iv) Leverage optimally in order to maximum shareholders returns while maintaining strength and flexibility of the balance

sheet.

The policy is also adjusted based on underlying macro-economic factors affecting business environment, financial and market

conditions.

The Company monitors capital on the basis of the following debt equity ratio:




Borrowings 1,87,06,045 3,67,68,655 2,82,66,311

Less: Cash and bank balances 1,12,23,653 28,31,824 16,51,422

Net debts 74,82,392 3,39,36,831 2,66,14,888

Total equity 26,92,02,728 23,80,93,474 21,03,71,307

Net debt to equity ratio 2.78% 14.25% 12.65%

Ecoplast Limited

134

B Fair value measurement hierarchy:

Particulars

As at 31st March, 2018 As at 1st April, 2016

Financial assets

At FVTPL - - - - - - - - - - -

At FVTOCI - - - - - - - - - - -

At Amortized cost

Trade Receivables 17,32,72,290 - - - 20,38,04,323 - - - 17,35,15,626 - - -

Cash and cash equivalents 1,12,23,653 - - - 28,31,824 - - - 16,51,422 - - -

Bank balances other than above 27,13,904 - - - 33,11,658 - - - 37,64,186 - - -

Loans 19,68,385 - - - 10,58,262 - - - 9,62,377 - - -

Other financial assets 8,97,421 - - - 19,40,918 - - - 15,18,150 - - -

Financial liabilities - - - - - - - - - - - -

At FVTPL - - - - - - - - - - - -

At Amortized cost - - - - - - - - - - - -

Borrowings 9,28,22,990 - - - 13,51,32,956 - - - 10,72,64,828 - - -

Trade payables 8,78,08,971 - - - 10,56,70,221 - - - 9,38,92,674 - - -

Other financial liabilities 1,29,13,683 - - - 1,27,91,552 - - - 89,31,389 - - -

- - - - - - - - - - - -


CarryingAmount



CarryingAmount



CarryingAmount



The fair values of the financial assets and liabilities are defined as the price that would be received to sell an asset or paid to

transfer a liability in an orderly transaction between market participants at the measurement date. Methods and assumptions

used to estimate the fair values are consistent with those used for the year ended 31st March, 2017.

The financial instruments are categorized into three levels based on the inputs used to arrive at fair value measurements as

described below:

i) Level 1: Level 1 hierarchy includes financial instruments measured using quoted prices.

ii) 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 entity-specific estimates. If all significant

inputs required to fair value an instrument are observable, the instrument is included in level 2. In the case of Derivative

contracts, the Company has valued the same using the forward exchange rate as at the reporting date.

iii) Level 3: If one or more of the significant inputs is not based on observable market data, the instrument is included in level 3.

C Calculation of fair values:

Financial assets and liabilities measured at fair value as at Balance Sheet date:

Other financial assets and liabilities:-

-Cash and cash equivalents , trade receivables, other financial assets , trade payables, and other financial liabilitieshave fair

values that approximate to their carrying amounts due to their short-term nature.

-Loans and Investments have fair values that approximate to their carrying amounts as it is based on the net present value of

the anticipated future cash flows using rates currently available for debt on similar terms, credit risk and remaining maturities.


135

30 Financial risk management

Risk management framework

The Company’s financial risk management is an integral part of how to plan and execute its business strategies. The Company’s business activities are exposed to a variety of financial risks, namely liquidity risk, market risks, commodity risk and credit risk. The Company’s senior management has the overall responsibility for establishing and governing the Company’s risk management framework. The Company has constituted a Risk Management Committee, which is responsible for developing and monitoring the Company’s risk management policies. The Company’s risk management policies are established to identify and analyze the risks faced by the Company, to set and monitor appropriate risk limits and controls, periodically review the changes in market conditions and reflect the changes in the policy accordingly. The key risks and mitigating actions are also placed before the Audit Committee of the Company.

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

A) Credit risk;

B) Liquidity risk;

C) Market risk; and

D) Interest rate risk

E) Commodity Risk

A Credit risk

Credit risk is the risk of financial loss to the Company if a customer or counter-party fails to meet its contractual obligations.

Trade and other receivables

The Company’s exposure to credit risk is influenced mainly by the individual characteristics of each customer. The demographics of the customer and including the default risk of the industry, also has an influence on credit risk assessment. Credit risk is managed through credit approvals, establishing credit limits and continuously monitoring the creditworthiness of customers to which the Company grants credit terms in the normal course of business.

Other than trade and other receivables, the Company has no other financial assets that are past due but not impaired.

The Company uses an allowance matrix to measure the expected credit losses of trade receivables. The loss rates are computed using a 'roll rate' method based on the probability of receivable progressing through successive stages of delinquency to write off.

The following table provides information about the exposure to credit risk and ECLs for trade receivables:




Not due 12,06,95,674 15,76,29,225 13,41,81,935

1 - 180 Days 5,21,79,151 4,18,90,421 3,93,83,074

181-360 Days 4,10,329 42,76,173 -

361-500 Days 24,024 1,61,919 3,169

More Than 500 days 5,43,137 30,75,998 31,00,060

Allowance for doubtful trade receivables

(Expected credit loss allowance) (5,80,025) (32,29,413) (31,52,611)

Total 17,32,72,291 20,38,04,323 17,35,15,627

Ageing of Trade receivables



Opening provision (8,92,277) -

Additional provision made

Provision Reverse (3,12,252) (8,92,277)

Closing provision (5,80,025) (8,92,277)

Movement in provisions of doubtful debts

Ecoplast Limited

136

Cash and cash equivalents

The Company held cash and cash equivalents of Rs. 11223653 as at 31st March, 2018 (31st March, 2017: Rs. 2831824, 1st April, 2016 : Rs.1651422). The cash and cash equivalents are held with banks.

B Liquidity risk

Liquidity risk is defined as the risk that the Company will not be able to settle or meet its obligations on time, or at a reasonable price.

Ultimate responsibility for liquidity risk management rests with the Board of Directors, which has built an appropriate liquidity risk management framework for the management of the Company's short, medium and long term funding and liquidity management requirements. The Company manages liquidity risk by maintaining adequate reserves, banking facilities and reserve borrowing facilities, by continuously monitoring forecast and actual cash flows and matching the maturity profiles of financial assets and liabilities.

Exposure to liquidity risk

The following table shows the maturity analysis of the Company's financial liabilities based on contractually agreed undiscounted cash flows as at the Balance Sheet date:



Borrowings 10,72,64,828 7,89,98,517 2,82,66,311 -


Other financial liabilities 89,31,389 89,31,389 - -

Derivative financial liabilities - - -

21,00,88,891 18,18,22,581 2,82,66,311 -

Carrying amount

Withinone year

Carryingamount

More thanfive years

One to fiveyears

ParticularsAs at 31st March, 2017


Borrowings 13,51,32,956 9,83,64,301 3,67,68,655



Derivative financial liabilities -

25,35,94,730 21,68,26,075 3,67,68,655 -

Carrying amount

Withinone year

Carryingamount

More thanfive years

One to fiveyears

ParticularsAs at 31st March, 2018


Borrowings 9,28,22,990 7,41,16,945 1,87,06,045 -



Derivative financial liabilities

19,35,45,644 17,48,39,599 1,87,06,045 -

Carrying amount

Withinone year

Carryingamount

More thanfive years

One to fiveyears


137

*Guarantees issued by the Company on behalf of joint venture/subsidiary are with respect to borrowings raised by the respective entity. These amounts will be payable on default by the concerned entity. As of the reporting date, none of the subsidiary/joint venture have defaulted and hence, the Company does not have any present obligation to third parties in relation to such guarantees.

C Market risk"Market risk is the risk that changes in market prices – such as foreign exchange rates, interest rates and equity prices – will affect the Company’s income or the value of its holdings of financial instruments. The objective of market risk management is to manage and control market risk exposures within acceptable parameters, while optimising the return. "The Company operates internationally and portion of the business is transacted in several currencies. Consequently the Company is exposed to foreign exchange risk through its sales and services in overseas and purchases from overseas suppliers in various foreign currencies. Exports of the company are significantly lower in comparison to its imports.The Company holds derivative financial instruments such as foreign exchange forward contract to mitigate the risk of changes in exchange rates on foreign currency exposure. The exchange rate between rupee and foreign currency has changed substantially in recent years and may fluctuate substantially in future. Consequently, the results of the Company's operation are adversely affected as the rupee appreciates/ depreciates against these currencies.The carrying amounts of the Company’s foreign currency dominated monetary assets and monetary liabilities at the end of the reporting period are as follows:


In US Dollars (USD) 2,85,53,241 3,46,68,411 3,28,23,801 - 1,41,92,252 1,00,47,000

In Euro (EUR) - 12,85,931 21,34,324 - - -

As at31st March,

2018


As at31st March,

2017

As at1st April,

2016

As at31st March,

2018

As at31st March,

2017

As at1st April,

2016


In US Dollars (USD) 4,40,362 5,13,086 5,14,958 - 2,18,024 1,53,000

In Euro (EUR) - 18,036 28,176 - - -

As at31st March,

2018


As at31st March,

2017

As at1st April,

2016

As at31st March,

2018

As at31st March,

2017

As at1st April,

2016

Foreign currency sensitivity analysis

The Company is mainly exposed to the currency : USD, EUR

The following table details the Company’s sensitivity to a 5% increase and decrease in the Rupee against the relevant foreign currencies. 5% is the sensitivity rate used when reporting foreign currency risk internally to key management personnel and represents management’s assessment of the reasonably possible change in foreign exchange rates. This is mainly attributable to the net exposure outstanding on receivables or payables in the Company at the end of the reporting period. The sensitivity analysis includes only outstanding foreign currency denominated monetary items and adjusts their translation at the period end for a 5% charge in foreign currency rate. A positive number below indicates an increase in the profit or equity where the Rupee strengthens 5% against the relevant currency. For a 5% weakening of the Rupee against the relevant currency, there would be a comparable impact on the profit or equity, and the balances below would be negative.

Impact on profit or loss and total equity




Increase in exchange rate by 5% (14,27,662) (10,23,808) (11,38,840)

Decrease in exchange rate by 5% 14,27,662 10,23,808 11,38,840

USD impact




Increase in exchange rate by 5% - (64,297) (1,06,716)

Decrease in exchange rate by 5% - 64,297 1,06,716

Euro impact

Ecoplast Limited

138

The Company, in accordance with its risk management policies and procedures, enters into foreign currency forward contracts

to manage its exposure in foreign exchange rate variations. The counter party is generally a bank. These contracts are for a

period between one day and one year. The above sensitivity does not include the impact of foreign currency forward contracts

which largely mitigate the risk.

D Interest rate risk

There is no material interest risk relating to the Company’s financial liabilities which are detailed in note 11 and 15.1

31 Employee Benefits

[A] Defined contribution plans:

The Company makes Provident Fund and Superannuation Fund contributions to defined contribution plans for qualifying

employees. Under the Schemes, the Company is required to contribute a specified percentage of the payroll costs to fund the

benefits. The Company recognised Rs.33,67,842 (As at 31st March, 2017: Rs.31,72,950 ; As at 1st April, 2016:

Rs.29,37,815) for Provident Fund contributions and Rs.24,10,166 (As at 31st March, 2017: Rs. 22,57,061; As at 1st April,

2016: Rs.20,24,683) for Superannuation Fund contributions in the Statement of Profit and Loss. The contributions payable to

these plans by the Company are at rates specified in the rules of the schemes.

[B] Defined benefit plan:

The Employees' gratuity fund scheme managed by LIC of India . is a defined benefit plan. The present value of obligation for

gratuity and leave encashment is determined on the basis of Actuarial Valuation Report made at the year end.

i) On normal retirement / early retirement / withdrawal / resignation: As per the provisions of Payment of Gratuity Act, 1972 with

vesting period of 5 years of service.

ii) On death in service: As per the provisions of Payment of Gratuity Act, 1972 without any vesting period.

These plans typically expose the Company to acturial risks such as : investment risk , interest risk , longevity risk and salary

risk.

Investment risk:

The present value of the defined benefit plan liability is calculated using a discount rate which is determined by reference to

market yields at the end of the reporting period on government bonds. If the return on plan asset is below this rate, it will create

plan deficit.

Interest risk:

A decrease in the bond interest rate will increase the plan liability; however, this will be partially off set by an increase in the plan

assets.

Longevity risk:

The present value of the defined benefit plan liability is calculated by reference to the best estimate of the mortality of plan

participants both during and after their employment. An increase in the life expectancy of the plan participants will increase the

plan’s liability.

Salary risk:

The present value of the defined benefit plan liability is calculated by reference to the future salaries of plan participants. As

such, an increase in the salary of the plan participants will increase the plan’s liability.

The following table sets out the status of the gratuity plan and the amounts recognized in the Company's financial statements

as at 31st March, 2018.


139

a) Changes in present value of obligations (PVO)31st March,2018 31st March,2017 1st April, 2016

Present Value of Benefit Obligation at the Beginning of the Period 1,69,96,022 1,37,84,401 1,11,03,052

Interest cost 12,35,611 11,15,158 8,82,693




Actuarial (Gains)/Losses on Obligations -

Due to Change in Financial Assumptions (10,04,719) 30,79,762 (1,31,859)

Actuarial (Gains)/Losses on Obligations - Due to Experience 8,18,783 (16,44,705) 14,78,162

PVO at the end of the year 1,77,94,896 1,69,96,022 1,37,84,401

Gratuity - Funded

b) Fair value of plan assets:31st March,2018 31st March,2017 1st April, 2016

Fair value of plan assets at the beginning of the year 1,55,72,629 1,32,03,293 1,06,45,001

Adjustment to opening fair value of plan assets - - -

Return on plan assets excl. interest income 74,312 26,127 58,547

Interest income 11,32,130 10,68,146 8,46,278

Contributions by the employer 16,55,931 12,75,063 16,73,775


Fair value of plan assets at the end of the year 1,59,26,908 1,55,72,629 1,32,03,293

Gratuity - Funded

c) Amount to be recognized in the balance sheet:31st March,2018 31st March,2017 1st April, 2016

PVO at the end of period 1,77,94,896 1,69,96,022 1,37,84,401

Fair value of plan assets at end of the period 1,59,26,908 1,55,72,629 1,32,03,293

Funded status (Surplus/(Deficit)) (18,67,988) (14,23,393) (5,81,108)

Net (Liability)/Asset Recognized in the Balance Sheet (18,67,988) (14,23,393) (5,81,108)

Gratuity - Funded

d) Expense recognized in the statement of profit or loss:31st March,2018 31st March,2017 1st April, 2016


Net interest Cost 1,03,481 47,012 36,415

Past Service Cost 5,38,615 - -

Expense recognized in the statement of profit or loss 23,60,774 7,08,418 5,09,076

Gratuity - Funded

e) Other comprehensive income (OCI):31st March,2018 31st March,2017 1st April, 2016

Actuarial (Gain)/Loss on Obligation for the period (10,04,719) 14,35,057 13,46,303

Return on plan assets excluding Interest Income (74,312) (26,127) (58,547)

Net (Income)/Expense For the Period Recognized in OCI (10,79,031) 14,08,930 12,87,756

Gratuity - Funded

f) Actual return on the plan assets:31st March,2018 31st March,2017 1st April, 2016

12,06,442 10,94,273 9,04,825

Gratuity - Funded

Ecoplast Limited

140

g) Category of Assets31st March,2018 31st March,2017 1st April, 2016

Insurance Fund 1,59,26,908 1,55,72,629 1,32,03,293

Gratuity - Funded

h) Assumption:31st March,2018 31st March,2017 1st April, 2016

Expected Rate on Plan Assets 7.85% 7.27% 8.09%

Rate of Discounting 7.85% 7.27% 8.09%

Rate of Salary Increase 8.00% 8.00% 8.00%

Rate of Employee Turnover 2.00% 2.00% 2.00%

Mortality Rate during employment IALM(2006-08) IALM(2006-08) IALM(2006-08)

Mortality Rate After employment N.A N.A N.A

Gratuity - Funded

Assumption:

1. Analysis of Defined Benefit Obligation

The number of members under the scheme have increased by 4.95%. Similarly the total salary increased by 7.69% during the accounting period. The resultant liability at the end of the period over the beginning of the period has decreased by 34.86%.

2. Expected rate of return basis

The scheme funds are invested with Trustee of the Company which is based on rate of return declared by fund managers.

3. Description of Plan Assets

100 % of the Plan Asset is entrusted to trustees of the Company under their Group Gratuity Scheme.

Year PVO Payouts31st March,2018

PVO Payouts31st March,2017

1st Following Year 14,00,101 45,27,895

2nd Following Year 4,76,950 5,30,122

3rd Following Year 22,96,740 5,64,533



Sum of years 6 to 10 58,89,247 60,83,911

Sum of years 11 and above 3,54,91,971 1,96,95,196

j) Sensitivity analysis

Significant actuarial assumptions for the determination of the defined benefit obligation are discount rate and expected salary increase. The sensitivity analysis below have been determined based on reasonably possible changes of the respective assumptions occurring at the end of the reporting period, while holding all other assumptions constant.

Particulars 31st March,2018 31st March,2017

Projected Benefit Obligation on Current Assumptions 1,68,54,056 1,69,96,022

Delta Effect of +1% Change in Rate of Discounting (15,22,245) (11,03,302)

Delta Effect of -1% Change in Rate of Discounting 17,96,415 12,79,138

Delta Effect of +1% Change in Rate of Salary Increase 14,59,688 12,57,276

Delta Effect of -1% Change in Rate of Salary Increase (13,13,941) (11,05,891)

Delta Effect of +1% Change in Rate of Employee Turnover 67,466 (67,948)

Delta Effect of -1% Change in Rate of Employee Turnover (74,879) 75,959


141

i) Expected Payout:

Although the analysis does not take account of the full distribution of cash flows expected under the plan, it does provide an approximation of the sensitivity of the assumptions shown.

Based on the actuarial valuation obtained in this respect, the following table sets out the status of the gratuity plan and the amounts recognised in the Company’s financial statements as at balance sheet date:




Total employee benefit liabilities

Other current liabilities 13 - (14,23,393) (5,81,108)

Other current assets 6 (18,67,988) - -

Note

(k) General Assumptions

(i) Leave Policy:

Leave balance as at the valuation date and each subsequent year following the valuation date to the extent not availed by the employee accumulated up to 31 March 2018 is available for encashment on separation from the company upto a maximum of 90 days

(ii) The assumption of future salary increases, considered in actuarial valuations, takes account of inflation, seniority, promotion, supply and demand and other relevant factors.

(iii) Liability on account of long term absences has been actuarially valued as per Projected Unit Credit Method.

(iv) Short term compensated absences have been provided on actual basis.

32 Related Party Transactions

The disclosure of related party transactions is presented on an aggregate basis for shareholders and companies controlled by shareholders, joint ventures and associates. In addition, there may be additional disclosures of certain significant transactions (balances and turnover) with certain related parties

(I) Name of the related party and nature of relationship: -

Particulars

a) Key Managerial Personnel (KMP)

Managing Director

Mr.J.B.Desai


Dividend Paid 1,23,650

Sale of Used Car 2,95,000

Mr. P. P. Kharas : Chairman



Dividend Paid 98,376

Mr. B. B. Desai : Non Executive Director


Commission Paid on Profit - 61,861

Dividend Paid - -

Mrs. C. N. Patel : Non Executive Director

Sitting Fees Paid 80,000 1,20,000


Dividend Paid 4,60,693

2017-18 2016-17Sr No

Ecoplast Limited

142

Particulars

Mr. B. M. Desai : Non Executive/Independent Director



Dividend Paid 120

Mr. M. B. Desai : Non Executive/Independent Director



Dividend Paid 11,580

Mr. D. T.. Desai : Non Executive/Independent Director


Commission Paid on Profit - -

Dividend Paid - -

Mr. J. A. Moos : Non Executive/Independent Director



Dividend Paid 600 -

Others :

Mr. M. D. Desai : Chief Finance Officer


Mr. Antony Alapat : Company Secrectory


B) Relatives of KMP

- - -

C) Company in which KMP / Relatives of KMP can exercise significant influence

Propack Industries ( Prop.Kunal Plastics Pvt.Ltd.)

Sales of Goods 72,33,652 37,78,481


Render Services 1,85,379 -

Receiving Services 10,79,090 11,06,894

Balance Receivable 17,659 -

Balance Payable 5,22,911 9,47,908

2017-18 2016-17Sr No

*As the liabilities for defined benefit plans are provided on actuarial basis for the Group as a whole, the amounts

pertaining to Key Management Personnel are not included.

Footnotes:

(i) All Related party transactions entered during the year were on ordinary course of business and are on arm's length basis.

(ii) Key Managerial Personnel are entitled to post-employment benefits and other long term employee benefits recognised as per

Ind AS 19 - ‘Employee Benefits’ in the financial statements. As these employee benefits are lump sum amounts provided on

the basis of actuarial valuation, the same is not included above.


143

33 (i) Capital Commitments




On account of Capital Commitments ( Net of advances) 64,53,142 - 1,38,53,610

TOTAL 64,53,142 - 1,38,53,610

Year ended

Estimated amount of contracts remaining to be executed on capital account and not provided for Rs 1,09,17,466 /- (March 2017 : ̀ NIL /- , March 2016 :` 1,77,15,110/-).

(ii) Contingent liabilities




The Company has given irrevocable and unconditional

Corporate Guarantee/ Collateral Securities to Bank of

Baroda-Bulsar on behalf of Synergy Films Pvt. Ltd., a

Subsidiary company in which the company is holding 100 %

of the equity shares as on 31/03/2018 as a collateral security

for Working capital. 4,06,50,497 4,05,69,598 4,08,63,282

On account of Income Tax/ Sales Tax and

Service Tax demand under contest 16,00,555 15,50,051 10,99,269

TOTAL 4,22,51,052 4,21,19,649 4,19,62,551

Year ended

34 Segment information :

The Company's sole business segment is Plastic Films and all activities are incidental to this sole business segment. Given

this fact and that the Company services its domestic and export markets from India only, the financial statements reflect the

information required by Ind AS 108 ‘Operating Segments’ for the sole business segment of Plastic Films. The whole of the

business assets are situated in India.

35 Leases

Operating lease:

The Company has acquired leasehold land from Assam Industrial Infrastructure Development Corporation under operating

lease. These rentals recognized in the Statement of Profit and Loss Account for the year is Rs.99,788 (31st March, 2017: Rs.

69,678). The future minimum lease payments and payment profile of non cancellable operating leases are as under:




Not later than one year 71,364 71,364 71,364

Later than one year but not later than five years 2,85,456 2,85,456 2,85,456

More than five years 31,40,016 32,11,380 32,82,744

Total 34,96,836 35,68,200 36,39,564

Ecoplast Limited

144




M. D. DESAIC.F.O.






36 The Company has imported Plant and Machineries under Export Promotion Capital Goods Scheme (EPCG) without payment

of Custom Duty. In the event of non-fulfilment of export obligations as specified, Company may be held liable to pay custom

duty of Rs.32.21 lacs (Previous year Rs.65.65 lacs) in terms of the said Scheme. As on 31st March 2018 Company is not in any

default under the Scheme.

37 The Company prior to it being listed had issued Bonus shares on 29th June, 1994 for Rs. 10 Million (10,00,000 equity shares of

Rs. 10/- each) by capitalising part of its revaluation reserve. Accordingly, the paid up equity share capital of the company

stands increased by Rs. 10 Million and the revaluation reserve stands reduced by that amount. The issue of bonus shares as

aforesaid is contrary to the circular issued by the Department of Company Affairs issued in September, 1994 and the

recommendations of the Institute of Chartered Accountants of India issued in November, 1994. However, the Hon'ble

Supreme Court in the recent decision in the case of Bhagwati Developers Vs Peerless General Finance & Investment Co. &

others (2005) Comp LJ 377 (SC) has held that there is no specific bar under the Companies Act for issue of Bonus Shares out

of Revaluation Reserve and that the Department's Communique was advisory in nature, without any mandatory effect. The

Management is therefore of the opinion that both according to the accounting principles and provisions of Company Law, the

Company was justified in capitalizing its Revaluation Reserve.

38 Event occuring after Balance Sheet date:

The Board of Directors, at their meeting held on May 28, 2018, have proposed a dividend of Rs. 1.50 Per equity share for the

financial year ended March 31, 2018. The proposal is subject to the approval of shareholders at the ensuing Annual General

Meeting , and if approved, would result in a cash outflow of approximately Rs. 54,16,094/-, including Dividend Distribution Tax.

( Previous Year Rs.1.20 pre Equity Share resulting in to total Outgo of Rs. 43,32,874/- Including Dividend Distribution Tax)

39 Authorization of Financial Statements:

The Financial Statements were authorized for issue in accordance with a resolution of the Board of Directors in its meeting

held on 28th May, 2018.


145

Ecoplast Limited

146

Ecoplast Limited

Regd. Office: National Highway No. 8, Water Works Cross Road, Abrama, Valsad - 396 001

CIN: L25200GJ1981PLC004375

Tel: (02632) 226157

E-mail : [email protected] • Website : www.ecoplastindia.com

Attendance Slip

SIGNATURE OF THE ATTENDING MEMBER / PROXY

I hereby record my presence at the THIRTY SIXTH ANNUAL GENERAL MEETING of the Company at thethCountry Club, At P.O. Vashier, Valsad 396 001 on FRIDAY, 14 September 2018 at 12.00 p.m. noon.

Notes: 1. Shareholder /Proxyholder wishing to attend the meeting must bring the Attendance slip to the

meeting and hand it over at the entrance duly signed.

2. Shareholder/Proxyholder desiring to attend the meeting should bring his / her copy of the Annual

Report for reference at the meeting.


147

Form No. MGT-11

Proxy form

ECOPLAST LIMITED

Regd. Office: National Highway No. 8, Water Works Cross Road, Abrama, Valsad - 396 001

CIN: L25200GJ1981PLC004375

Name of the Member (s) : _______________________________________________________________

Registered address : __________________________________________________________________

E-mail Id : ___________________________________________________________________________

Folio No. / Client ID : _______________________________ DP ID No.: _________________________

I / We, being the member(s) of _________ equity shares of the above named company, hereby appoint

1. Name :

Address :

E-mail Id :

Signature : ,or failing him / her:

2. Name :

Address :

E-mail Id :


3. Name :

Address :

E-mail Id :


[Pursuant to section 105(6) of the Companies Act, 2013 and rule 19(3) of the Companies

(Management and Administration) Rules, 2014]

Tel: (02632) 226157

E-mail : [email protected] • Website : www.ecoplastindia.com

as my / our proxy to attend and vote (on a poll) for me / us and on my / our behalf at the 36th Annual General

Meeting of the Company at the Country Club, At P.O. Vashier, Valsad 396 001 on Friday, 14th September 2018

at 12.00 p.m.noon, and at any adjournment thereof, in respect of such resolutions set out in the Notice

convening the meeting, as are indicated below:

Ecoplast Limited

148

Signed this _________ day of __________, 2018

Signature of Shareholder

Signature of Proxy Holder (s)

Note :

Registered office of the Company, not less than 48 hours before the commencement of the

Meeting.

This form of proxy in order to be effective should be duly completed and deposited at the

1. Consider & adopt:

a) Audited Financial Statements, Reports of the Board of Directors and the Auditors

b) Audited Consolidated Financial Statements

2. Declare Dividend on Equity shares for the financial year ended 31st March, 2018

3. Reappointment of Ms. Charulata Patel (holding DIN 00233935) who retires by rotation.

4. Re-appointment of Mr. Jaymin Desai ( DIN 00156221) as Managing Director of the Company

for a period of three years with effect from 1st October, 2018 to 30th September 2021.

5. To approve the continual of the Directorship of Mr. Dhananjay T. Desai (holding

DIN:00049574) who has attained the age of seventy five year till his original tenure up to

September 11, 2020.

6. To approve the continual of the Directorship of Mr. Jehangir A. Moos (holding DIN:00020609)

who will attain the age of seventy five years till his original tenure up to September 19, 2019.

AffixRevenue

Stampof Rs. 1/-

Sr.No.

Resolutions

€¦ · Ecoplast Limited Annual Report 2017 -2018 Board of Directors Jaymin B. Desai - Managing...

Documents

Transcript of €¦ · Ecoplast Limited Annual Report 2017 -2018 Board of Directors Jaymin B. Desai - Managing...