1. LOSS ON IMPAIRMENT OF INVESTMENT AND PROVISION FOR BAD DEBTS IN ASSOCIATE COMPANY:

Due to unsatisfactory outcome in our Associate Company at USA, Namely Polyspin USA Inc, the company has made a provision of Rs. 36.56 Lakhs in its standalone financial results towards impairment of Investments & trade receivables as bad debts.

2. REPORTING ON RELATED PARTIES :

In accordance with the Accounting Standard (IND AS 24) issued by the Institute of Chartered Accountants of India, the Company has identified the following companies as Related parties:

A) Associate Companies :

1. Polyspin Private Limited

2. Lankaspin Private Ltd., Srilanka.

3. Energyspin Private Ltd.

4. Chola Packaging Private Ltd.

5. Ganesh Agro Pack Private Ltd.

6. Ramji Investments Private Ltd.

B) Key Management Personnel and Relatives :

i) Sri R. RAMJI

Managing Director and CEO

ii) Sri P.K. RAMASUBRAMANIAN Secretary and Compliance Officer

iii) Sri. S. SEENIVASA VARATHAN Chief Financial Officer

iii) The Company has challenged the levy of duty of excise and customs aggregating to Rs. 393.62 Lakhs on wrong calculation of SION Norms for the consumption of UV Master batches (Imported) for production of FIBC Bags meant for export (100% E.O.U) and the same is pending before the appropriate jurisdictional authorities.

37.4 As at 31.03.2018, the company has no outstanding dues to Micro, Small and Medium Enterprises (Previous year: Nil). This information as required to be disclosed under the Micro, Small and Medium Enterprises Development Act, 2006 has been determined to the extent such parties have been identified on the basis of information available with the company.

37.5 The Company has generated power out of Wind mill installed at Pazhavoor Taluk, Tirunelveli District, and the generated power was actively consumed by the Company by drawing the power from TNEB Grid. The Power and Fuel consumed is net of Rs. 21.05 Lakhs being the credit given by TNEB for the transfer of power to the Grid.

37.6 Our Company's shares are listed at Bombay Stock Exchange with stock code of 539354.

37.7 Deferred Tax (AS- 22) :

Deferred Tax Liability (Net) for Rs.36.00 Lakhs as on

31.03.2018 has been provided from the Current year's Profit in accordance with the Accounting for deferred tax in pursuance of AS-22 issued by the Institute of Chartered Accountants of India.

37.8 Figures relating to previous year have been regrouped wherever found necessary.