Note :

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

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

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

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

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

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

2.1 Employee Benefits

Defined Contribution Plans

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

Defined Benefits Plans

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

The following tables summarise :

3 RELATED PARTY INFORMATION :

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

1 (a) Directors and their relatives

1. Arvind Kapoor Chairman

2. Aditya Kapoor Managing Director

3. Atul Shah Director

4. Hemant D. Vakil Independent Director

5. Dilip Shah Independent Director

6. Vijyatta Jaiswal Independent Director

7. Gouri A. Kapoor Relative of Director

8. Shradha Khanna Relative of Director

9. Richa Chadha Relative of Director

10. Radhika Kapoor Relative of Director

(b) Key Management Personnel

1. Suresh H. Khilnani. Chief Financial Officer

2. Agnelo Fernandes. Company Secretary

(c) Enterprises under significant influence

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

2. Devi Organics Pvt Ltd 6. Rishichem Mideast Ltd

3. Rishichem Distributors Pvt Ltd 7. Raga Holdings

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

4 CSR Expenditure

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

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

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

5 LEASES

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

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

6 SEGMENT INFORMATION

6.1 Primary Segment

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

6.2 Secondary Segment

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

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

7 DERIVATIVE INSTRUMENTS

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

Details of forward contract outstanding as at the year end.

8 Risk Management

8.1 Financial Risk Managements

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

8.2 Liquidity Risk

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

8 .3 Credit Risk

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

8.3.1 Trade receivable

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

8.3.2 Other financial assets

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

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

8 .4 Market Risk

8.4.1 Interest rate risk

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

8.4.2 Price Risk

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

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

8.4.3 Foreign currency risk

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

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

9 Payment of Dividend

9.1 Dividend paid during the year

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

9.2 Proposed final dividend

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

(b) Fair Value Hierarchy

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

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

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

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

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

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