11.2 Rights attached to Equity Shares

The Company has only one class of shares (issued), having face value of Rs. 10/- each. Each holder of Equity Shares is entitled to one vote per share. 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. In the event of liquidation, the Equity Shareholders are eligible to receive the remaining assets of the Company after distribution of all preferential amounts, in proportion to their shareholding.

13.1 All Term Loans from banks are secured by joint equitable mortgage of immovable properties (present and future), hypothecation of fixed assets and second charge over the current assets, ranking pari passu among the lenders.

13.2 All Working Capital Term Loans from banks are secured by hypothecation of current assets and second charge on fixed assets and immovables of the company ranking pari passu among the lenders.

17.1 Working Capital Loans from banks are secured against hypothecation of raw materials, finished goods, work-in-process, packing materials, book debts, bills for collection and other current assets and second charge over fixed assets and immovables of the company, pari passu among the lenders, payable on demand.

Deferred Endowment represents the amount of government endowment to be amortised over the period of useful life of related asset and shown as non-current and current liabilities. During the year Rs 27.73 Lakhs (Rs. 27.73 Lakhs) has been amortised and adjusted in Depreciation & Amortisation Expenses. Interest expenses are net of Interest reimbursement received / receivable Rs. 392.32 Lakhs (Rs. 368.45 Lakhs). Interest reimbursement claims receivable Rs.251.66 Lakhs (Rs.254.45 Lakhs) is included in other current assets.

NOTE 31 : Contingent Liabilities and Commitments (to the extent not provided for) :

31.1 Contingent Liabilities :

a) Guarantees issued by banks for Rs.28.15 Lakhs (Rs.24.68 Lakhs)

b) Letters of Credits issued by banks for Rs 60.23 Lakhs (Rs Nil)

c) Claims against the Company not acknowledged as debt Rs 24.26 Lakhs (Rs. 29.01 Lakhs)

31.2 Commitments :

a) Estimated amount of Contract remaining to be executed on capital account, not provided for Rs 761.61 Lakhs (Rs. 432.73 Lakhs), advances paid Rs 67.36 Lakhs (Rs. 364.67 Lakhs).

NOTE 33 : Employees Benefits Expenses :

a) As per the Indian Accounting Standard 19 " Employee benefit" the disclosures as defined are given below :

i) Defined Contribution Plans Contribution to Defined Contribution Plans (Employers' Contribution to Provident Fund and Employees State Insurance Corp. ) are recognised as expenses and charged to the Statement of Profit & Loss

ii) Defined Benefit Plans Employees Gratuity and Leave encashment are considered as defined benefit plans.The obligation's are recognised in the Statement of Profit and Loss as per the actuarial valuation. The positiion of actuarial valuation performed by an

Sensitivity Analysis

Significant actuarial assumptions for the determination of the define benefit obligation are discount rate, expected salary increase and mortality. The sensitivity analysis below have determind based on reasonably possible changes of the assumptions occuring at the end of the reporting period, while holding all other assumptions constant. The result of sensitivity analysis is given below :

NOTE 37: The company is predominantly engaged in a single reportable operating segment of Paper Mill products during the year, hence segment information is not reported.

NOTE 38: Events after the Reporting Period -

The Board of Directors at its meeting held on 28.05.2024 has proposed Dividend of Rs 0.10 per equity share for the year ended on 31st March 2024, after the Balance Sheet date. The proposed Dividend on Equity Shares for the year is Rs. 3.06 Lakhs ( 3.06 Lakhs).

NOTE 39: Capital management

The company's capital management is intended to create value for shareholders and maintain optimum capital structure to reduce the cost of capital. The Company determines the amount of capital required on the basis of annual business plan, coupled with long term and short term requirements and company's expansion / moderisation plans, reviewed by Board of Directors. The funding needs are generally met through long term and short term bank borrowings. The Company monitors the capital structure on the basis of net debt to equity and maturity profiles of the overall debt portfolio of the company. Net debt includes interest bearing borrowings less cash and cash equivalents and current investments, if any.

The fair value hierarchy categorised financial instruments into Level 1 to 3, as described below:

i) Quoted prices in an active market (Level 1) :

This level of hierarchy includes financial assets that are measured by reference to quoted prices (unadjusted) in active markets for identical assets or liabilities. This category consist of investment in quoted equity shares.

ii) Valuation techniques with observables inputs (Level 2) :

This level of hierarchy includes financial assets and liabilities, measured using inputs other than quoted prices included within level 1 that are observable for the assets or the liabilities, either directly (i.e. as prices) or indirectly (i.e. derived from prices).

iii) Valuation techniques with significant unobservable inputs (Level 3) :

This level of hierarchy includes financial assets and liabilities, measured using inputs that are not based on observable market data (unobservable inputs).

iv) Short term financial assets and financial liabilities are stated at carrying value which is approximately equals to their fair value.

NOTE 41 : Financial risk Management

In the Course of its business , the Company is exposed to a variety of financial risk, which may adversely impact the fair value of its financial instruments. The Company has a risk management policy to monitor financial risk - Market risk, Credit risk and Liquidity risk associated with financial assets and liabilities. The risk management policies is reviewed by Board of Director periodically and required mitigation steps are taken.

a) Market Risk

The primary market risk to the Company is fluctuation in foreign currency exchange rates. The Company is exposed to foreign currency risk through its sales in overseas countries (exports) and purchases from overseas suppliers (imports) in foreign currencies. The company pays off its foreign exchange exposure within a short period of time. Presently Company's exports broadly mitigate the risk for imports except capital goods. However, with increase in exports, profitability may be partly affected if rupee appreciates. The Company has facilities of derivative financial instrument- foreign exchange forward and option contracts to mitigate the risk .

b) Credit Risk

Credit risk refers to the risk of default on its obligation by the counter party resulting in a financial loss. The maximum exposure to the credit risk at the reporting date is primarily from trade receivables amounting to Rs. 2513.78 Lakhs and Rs 2198.76 Lakhs as on 31.03.24 and as on 31.03.23 respectively. Trade receivable are unsecured and are derived from revenues from customers. The company has a Credit review & monitoring system which includes credit approvals, credit limits and monitoring. Doubtful debt strategies are made for recovery and limiting future exposure. Exports are preferably through LC or advance, besides covering the risk from credit risk agency, wherever applicable. Credit risk on cash and cash equivalent and bank balances is limited as the Company generally maintain balances / deposits with recognised banks.

c) Liquidity Risk

Liquidity risk refer to the risk that the Company may not able to meet its financial obligations. The objective of liquidity risk management is to maintain sufficient liquidity and ensure that funds are available for use as per the requirement. The Company has obtained adequate fund and non fund based working capital limits from its bankers. The Company maintains its surplus funds, if any, in deposits / balances with recognized banks which carry low risk. The Company believes that the working capital is sufficient to meet its current requirements.

The Table below provides details regarding the Company maturities of financial liabilities:

NOTE 43: No proceedings have been initiated or pending against the Company for holding any benami property under the Prohibition of Benami Property Transactions Act, 1988 (as amended in 2016) (formerly the Benami Transactions (Prohibition) Act, 1988 (45 of 1988)) and Rules made thereunder.

NOTE 44: No Loans or Advances in the nature of loans are granted to promoters, directors, KMPs and the related parties (as defined under Companies Act, 2013,) either severally or jointly with any other person.

NOTE 45: The Company has been sanctioned working capital limits from banks on the basis of security of current assets and the quarterly returns or statement of current assets filed by the company with banks are materially in agreement with books of accounts.

NOTE 46: The Company has not been declared wilful defaulter by any bank or financial institution or government or any government authority.

NOTE 47: There is no creation, modification or satisfaction of charges, which are pending to be registered with the Registrar of Companies beyond the statutory period.

NOTE 48: The Company does not have any transactions with the companies struck off under Companies Act, 2013 or Companies Act, 1956.

NOTE 49: During the year, the Company has not invested in any other company and does not have any subsidiary, hence the provision of section 2(87) read with the Companies (Restriction on number of Layers) Rules, 2017 is not applicable.

NOTE 50: The Company has not entered into any scheme of arrangement which has an accounting impact on current or previous financial year.

NOTE 51: During the year out of the borrowed funds, the Company has not advanced or loaned or invested funds to any other person(s) or entities, including foreign entities (Intermediaries) with the understanding that the Intermediary shall:-

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

b) Provide any guarantee, security or the like to or on behalf of the ultimate beneficiaries.

During the year, the Company has not received any funds from any person(s) or entity(ies), including foreign entities (Funding Party) with the understanding (whether recorded in writing or otherwise) that the Company shall:-

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

b) Provide any guarantee, security or the like to or on behalf of the ultimate beneficiaries.

NOTE 52: There is no income surrendered or disclosed, as income during the current or previous year in the tax assessments under the Income Tax Act, 1961, that has not been recorded in the books of account.

NOTE 53: The Company has not traded or invested in crypto currency or virtual currency during the current or previous year.

NOTE 54: The borrowing obtained by the Company from banks have been applied for the purpose it was taken.

NOTE 55: The Government of India has approved the Labour Codes and released draft rules which may impact the employees benefits and statutory contributions by the Company. The final rules are yet to be notified. The Company will assess the impect of the same, when it comes into effect and will give appropriate impact in its financial statements, if any.

NOTE 56: Approval of Financial Statements

The Financial statements were approved by the Board of Directors on 28th May, 2024

NOTE 57: Previous years figures have been rearranged and regrouped wherever applicable and considered necessary NOTE 58: Figures in brackets represent figures for the previous year.