NOTE NO. 1: HISTORY:
 
 Apt Packaging limited established in 1980 (earlier known as Anil
 Chemicals and Industries Limited till 19.06.2008) engaged in
 manufacturing of co extruded plastic tubes used for packaging. The
 facility was set up in the Aurangabad, Maharashtra in the year 1996 and
 a new unit has been put up in the state of Uttarakhand in the year
 2010. The new unit is eligible for various incentives of excise, income
 tax and other for a period of 10 years. The chemical division of the
 Company was de-merged into a new Company in the year 2008.
 
 NOTE NO. 2: SHARE CAPITAL
 
 Disclosure:
 
 1) *25,00,000 paid up shares issued to promoters during the financial
 year 2010-2011 at par are not transferable up to 25.10.2013
 
 
 2) The Company has only one class of equity shares having a par value
 of Rs. 10/- per share. Each equity share carries one vote and is
 entitled to dividend that may be declared by the Board of Directors,
 which is subject to the approval of the shareholders in the Annual
 General Meeting.
 
 NOTE NO. 3: LONG TERM BORROWINGS
 
 a) Primarily secured by hypothecation of some of the fixed assets of
 the company situated at Aurangabad unit and is repayable in equated
 monthly installments, due up to October 2013.
 
 b) Primarily secured by hypothecation of one machine at Laksar unit of
 the company and is repayable in equated monthly installments, due up to
 March, 2015.
 
 c) Primarily secured by hypothecation of some of the fixed assets at
 Laksar unit of the company and is repayable in equated monthly
 installments, due up to August, 2015.
 
 d) Primarily secured by hypothecation of some of the machines at
 Laksar- unit of the company and is repayable in installment of Rs.  3
 Lacs from April 2012 to June 2012 and of Rs. 7.80 Lacs from July 2012
 to March 2016. Part disbursement of this loan is pending.
 
 e) Primarily secured by hypothecation of some of the machines at Laksar
 unit of the company and is repayable in equated monthly installments,
 due up to December 2017. Part disbursement of this loan is pending.
 
 All the five term loans from PNB as mentioned above as a, b, c, d & e
 are personally guaranteed by chairman cum managing director and one
 director of the company. All of these are collaterally secured by all
 the fixed assets of the Company situated at Pharoia, Chikalthana and
 Laksar plants. The loan as mentioned in a above carries interest at
 BPLR of the bank which is presently at 14% p.a. and other term loans as
 mentioned in b, c, d, e above carries the interest rate depending upon
 the BPLR & base rate of the bank which presently works out from 16 to
 16.50% p.a.
 
 f) Secured by hypothecation of the vehicles acquired by utilising the
 said loan in the name of chairman cum managing director of the company
 and is repayable in equated monthly installments, due upto October
 2015, the loan carries the interest @ 7% p.a.
 
 g) Secured by hypothecation of the vehicles acquired by utilising the
 said loans in the name of chairman cum managing director of the company
 and is repayable in equated monthly installments, due upto October
 2013, the loan carries the interest @ 9 to 11 p.a.
 
 h) Secured by hypothecation of the vehicles acquired by utilising the
 said loans and is repayable in equated monthly installments, due upto
 August 2013, the loan carries the interest @ 16 % p.a.
 
 i) Secured by FLC issued by PNB and was repayable in equated quarterly
 installments, due upto January 2012, without any interest.
 
 The loan is in Euro currency
 
 j) Secured against the machine purchased from the machine supplier and
 is repayable up to the year 2012-2013 without any interest. The loan is
 in CHF currency. Rs. 58.78 Lacs repayment is to be made during the year
 2012-2013 from disbursement from the term loan as mentioned in d above
 hence shown under long term liability 
 
 k) Repayable up to the year June 2014 without any interest.  The loan
 is in CHF currency. The amount of Rs. 126.19 shown as long term
 liability includes Rs. 31.89 Lacs repayables during the year 2012-2013
 which are to be financed from fresh disbursement from term loan as
 mentioned in d above.
 
 l) This is as per incentive scheme of government of Maharashtra for the
 tube unit of the company situated at Pharola. The repayment of each
 year of the deferred sales tax amount is to be made in five equal
 installments in 11th to 15th year, without any interest. 
 
 m) Carry interest @ 9% to 15% p.a.
 
 n) Carry interest @ 12% p.a.  
 
 o) Interest free.
 
 p) Carry interest @ 9% p.a.
 
 NOTE NO. 4: DEFERRED TAX LIABILITY
 
 Disclosure:
 
 1) Cash credit, packing credit and working capital demand loan from
 bank are secured by hypothecation of all tangible movable assets both
 present and future including stock of raw materials, finished goods,
 goods in process, stores and trade receivables etc and is further
 secured by a second Charge on the fixed assets at Laksar, Pharola and
 Chikalthana. The cash credit, packing credit post shipment credit and
 inland letter of credit acceptance is repayable on demand and carries
 interest rates © 11% to 16% p.a.
 
 2) Outstanding foreign currency buyer''s credit loans are unsecured and
 cany an interest rate ranging from libor plus 350 bps.
 
 NOTE NO. 5: TRADE PAYABLES 31.03.2012 31.03.2011
 
 Disclosure:
 
 There are no dues to any creditors constituting Suppliers within the
 meaning of Section 2 (n) of the Micro, Small and Medium Enterprises
 Development Act, 2006. The identification of Micro, Small and Medium
 enterprises is based on the management''s knowledge of their status. The
 Company has not received. any intimation from suppliers regarding their
 status under The Micro, Small and Medium Enterprises Development Act,
 2006.
 
 NOTE NO. 6 EXTRA-ORDINARY ITEMS
 
 Disclosure:
 
 1) During the year the company has sold fixed assets of the Emulsion
 and WPC units situated at Nandrabad, Aurangabad and plant & machineries
 as scrap of the PAN unit situated at Chikalthana, Aurangabad. The
 operations of these units were suspended for more than 12 years. The
 business activity pertains to these divisions were discontinued due to
 obsolete macheneries and overall market conditions. The disposal of
 assets is in compliance to sanctioned scheme dated 23.10.2007 ordered
 by Hon''ble Board for Industrial and Financial Reconstruction. Therefore
 this disposal does not affect the going concern status of company.
 
 2) The profit of extraordinary nature as mentioned in the financial
 statements of Rs. 130.12 is from these sales net of loss of Rs.  4.01
 Lacs.
 
 3) The provision for capital gain tax (income tax) on sale of business
 assets has not been made in the books of accounts as the same is to be
 set off from unabsorbed brought forward business losses and unabsorbed
 depreciation as well as current business loss and depreciation. This
 view is also upheld by the Hon''ble Delhi High Court in case of
 Assistant Commissioner of Income Tax v/s Lavish Apartments Private
 Limited and the management has relied on the same.
 
 4) During the year depreciation of all above divisions is charged
 amounting to Rs. 7.05 Lac (Rs. 8.07Lacs)
 
 NOTE NO. 7: SEGMENT REPORTING
 
 Broadly by all criteria the activities of the company falls in the
 segments as detailed below.
 
 Criteria                          Segment
 
 Product base                      1) Co-extruded Tube, 2) Garments
 
 Customer base                     Domestic market/overseas market
 
 Geographical Area of Operation    Domestic market/overseas market
 
 Geographical area of assets 
 location                          Maharashtra, Uttarakhand
 
 NOTE NO. 8: As on 31.03.2012 as per the financial statement, the net
 worth of the company has reduced to below 50% from the peak net worth
 in preceding 4 years. The company is in process for complying with the
 Board for Financial and industrial Reconstruction as per the provisions
 of Section 23 of Sick Industrial Companies Act.
 
 NOTE NO. 9: The provision for capital gain tax (income tax) on sale of
 business assets has not been made in the books of accounts as the same
 is to be set off from unabsorbed brought forward business losses and
 unabsorbed depreciation as well as current business loss and
 depreciation. This view is also upheld by the Hon''ble Delhi High Court
 in case of Assistant Commissioner of Income Tax v/s Lavish Apartments
 Private Limited and the management has relied on the same.
 
 NOTE NO. 10: During the year the company has disposed off all of the
 shares held in the erstwhile subsidiary company M/S Nawneet Machine
 Manufacturing Company Private Limited at par and the company ceases to
 be subsidiary. Therefore the consolidated balance sheet is not
 prepared. Hence the previous year financials of M/S Nawneet Machine
 Manufacturing Company Private Limited is as under:
 
 NOTE NO. 11: CONTINGENT LIABILITIES:
 
 a.  Claims not acknowledged as debts are on account of a suit filed
 against the company by M/s Food Fats and Fertilizers Ltd. on behalf of
 Apte Organic Chemicals Pvt. Ltd. in Mumbai High Court for the recovery
 of Rs. 2.67 Lacs (Rs. 2.67 Lacs). The company is contesting the same.
 The BIFR have ordered for repayment subject to withdrawal of suit.
 
 b.  Guarantee given by the Company for sales tax deferment dues of the
 resulting Company Machhar Industries Limited as per the sanctioned
 scheme ordered by BIFR Rs. 399.36 Lacs (Rs. 399.36 Lacs).
 
 c.  Bonds executed by the company in favour of Commissioner, Central
 Excise and Customs, Government of India for import of capital goods
 under the Export Promotion Capital Goods Scheme of the Government of
 India for import of capital goods Rs.  669.83Lacs (Rs. 609.84 Lacs),
 for export obligations to that extent to be completed.
 
 d.  In respect of demand raised by Sales Tax authority, Aurangabad for
 Rs. 1.52 lacs for the FY 2004-2005 on assessment for which the company
 have made appropriate representation for withdrawal of the demand to
 the department.
 
 e.  In respect of notices issued by Sales Tax Authority. Hardwar with
 respect to various compliances for Rs. 1.61 Lacs
 
 f.  In respect of fiscal liabilities that may arise on account of
 non-observance of provisions of various fiscal statues, Companies Act
 and other related laws and interest chargeable on demands raised and
 not paid if any, amount is not ascertainable.
 
 g.  Estimated amount of contract remaining to be executed net of
 advances on capital account and not provided for Rs. 148.53 Lacs (Rs.
 61.34 Lacs).
 
 NOTE NO. 12: Certain statutory requirements and records are in the
 process of their compilation/updation.
 
 NOTE NO. 13: The outstanding balances of Debtors, Creditors and Loans &
 Advances (taken and given), balances with various statutory/fiscal
 authorities (assets & Liabilities) i.e. excise deposits/balances,
 VAT/Sales Tax dues, TDS/TCS are subject to confirmation, reconciliation
 and consequent adjustments, if any. The difference as may be noticed on
 reconciliation will be duly accounted for on completion thereof. In the
 opinion of the Management the ultimate difference will not be material.
 
 NOTE NO. 14: EMPLOYEE BENEFITS
 
 Defined Benefit Plans
 
 The company has neither created fund nor contributed to Scheme framed
 by the Insurance Company for the defined benefit plans for the
 qualifying employees. The present value of the defined benefit
 obligation and the related current service cost were measured using the
 Projected Unit credit method with actuarial valuations being carried
 out at each balance sheet date.