b) Rights, preferences and restrictions attached to equity shares

The company presently has one class of equity shares having a par value of F10/- each. Each holder of equity shares is entitled to one vote per equity share. The dividend if proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting.

In the event of liquidation of the company, the holders of equity shares will be entitled to receive any of the remaining assets of the company, after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders.

I Nature and purpose of reserve

a) Capital reserve: The amount of Capital profit on re-issue of forfeited shares is recognised as Capital Reserve.

b) Securities premium: The amount received in excess of face value of the equity shares is recognised in Securities Premium. It can be utilized in accordance with the provisions of the Companies Act 2013, for issuance of bonus shares, to provide for premium on redemption of shares or debentures, write-off equity related expenses like underwriting costs etc

c) General Reserve: General Reserves are the free reserves of the Company which are kept aside out of Company’s profit to meet future requirement as and when they arise. The Company had transferred a portion of the profit after tax to General reserves pursuant to the earlier provisions of the Companies Act ’1956. Mandatory transfer to General Reserve is not required under the Companies Act’ 2013.

d) Retained earnings: Retained earnings are the accumulated profit earned by the Company till date less transfer to General Reserve and payment of Dividend (including dividend distribution tax where applicable).

e) Other Comprehensive Income: The reserve represents cumulative gain and loss on remeasurement of defined benefit plan and return on plan assets (excluding amount included in net interest). The balance in the reserve can be transferred to retained earnings as and when the company decides to do so.

Details of security for loans repayable on demand (secured)

i) Working capital borrowings from banks F381.28 lakhs (31st March 2023: F1302.88 lakhs) are secured by hypothecation of stocks of raw materials, finished goods, bills receivables, book debts and all other movable assets of the company and further secured by way of second charge on the immovable assets situated at village Banah and at Ahmedgarh and also personally guaranteed by two promoter directors of the company (Refer Note 40).

ii) The Company has obtained overdraft facility from Bank against pledge of current investment as stated in Note No 9. The outstanding balance against this facility is F97.00 (31st March 2023: FNil) (refer Note 40)

iii) The Company has obtained borrowings F800 Lakhs (31st March 2023 F1200 Lakhs) from Deustche India Investments Pvt Limited against pledge of current investment as stated in Note No 9. (Refer Note No 40)

Other discloures w.r.t Borrowings

iv) The Company has used the borrowings from banks and financial institutions for the specific purpose for which it was taken at the balance sheet date.

v) The company has taken borrowings from banks on the basis of security of current assets. The quarterly returns/statements filed by the company with the banks are in agreement with the books of account.

vi) The company has not been declared as wilful defaulter by any bank or financial Institution or other lender.

vii) As at 31st March 2024, the register of charges of the Company as available in records of the Ministry of Corporate Affairs (MCA) includes charges for which the underlying loans have been repaid. The Company is in process of filing the charge satisfaction e-form with MCA, within the timelines, as and when it receives NOCs from the respective charge holders.

39 Contingent liabilities and commitments (to the extent not provided for)

(No cash outflow is expected)

A CONTINGENT LIABILITIES

a) Claims against the company not acknowledged as debt in respect of demands for various years relating to Central excise, Customs duty, Service tax and VAT, PSPCL contested in appeal amounted to F379.46 lakhs (previous year F406.38 lakhs). According to the management and tax advisors that the demand raised is not in accordance with the provisions of respective laws and its ultimate resolution will not have a material adverse effect on the company financial position and result of operations. As against this, a sum of F65.88 lakhs (Previous year F74.04 lakhs) is deposited under protest and has been included under Note 7 ’Other non current assets’.

b) Liability on account of outstanding bank guarantees and letter of credit is F1943.84 lakhs (previous year F3399.96 Lakhs).

c) The Punjab Water Regulation and Development Authority had notified Punjab Groundwater Extraction and Conservation Directions, 2023”on January 27’2023 to be effective from February 01’2023. As per the directions the charges for extraction of underground water are proposed to be applicable from date of submission of application under draft guidelines or from date of extraction which ever is later. The Company has filed petition with the Punjab Water Regulation and Development Authority against the restrospectively levy of extraction charges under Ad-interim permission without notification in the Official Gazette and implict consent. The demand for F1785.31 Lakhs against the Company for the period upto January 2023 has not been acknowledged as debt.

d) The amounts shown above represents the best possible estimates arrived at on the basis of available information. The uncertainties and possible reimbursements are dependent on the outcome of the different legal processes which have been invoked by the Company or the claimants as the case may be and therefore cannot be predicated accurately or relate to the present obligations that arise from past events where it is either not probable that anoutflow of resources will be required to settle or a reliable estimate cannot be made. The Company has been advised that it has strong legal position against such dispute.

e) The Code on Social Security, 2020 (’Code’) relating to employee benefits during employment and post-employment benefits received Presidential assent in September 2020. The Code has been published in the Gazette of India. However, the date on which the Code will come into effect has not been notified. The Company will assess the impact of the Code when it comes into effect and will record any related impact in the period when the Code becomes effective.

f) The Hon’ble Supreme Court in a ruling during the year 2019 had passed a judgement on the definition and scope of ’Basic Wages’ under the Employees’ Provident Funds and Miscellaneous Provision Act, 1952. Pending issuance of guidelines by the regulatory authorities on the application of this ruling, the impact on the Company, if any, cannot be ascertained. The Company will update its provision, on receiving further clarity on this subject matter.

b) The Company has other commitments, for purchases /sales order which are issued after considering requirements per operating cycle for purchase /sale of goods and services, employee benefits in normal course of business. The Company does not have any long-term contracts including derivative contracts for which there will be any material foreseeable losses.

viii) The estimates of future salary increases, considered in actuarial valuation, take into account inflation, seniority, promotion and other relevant factors, such as supply and demand in the employment market.

ix) The plan typically exposes the Company to actuarial risks such as: investment risk, interest rate risk, longevity risk and salary risk. Investment Risk

The Probability or likelihood of occurrence of losses relative to the expected return on any particular investment.

Interest risk

If the Discount Rate i.e. the yield on the Government Bonds decrease in future, the Actuarial Liability will increase and vice versa. The quantum of increase in valuation liability corresponding to specific decrease in the Discount Rate and vice versa, has been shown in the annexure containing the sensitivity Analysis of Key Actuarial Assumption.

Longevity risk

If the Mortality rate experienced by the staff of a particular company is higher than what is assumed in mortality Table used in the valuation, the valuation liability will increase.

However, it will be very cumbersome to measure the quantum of increase for assumed reduction of Mortality rates as can be done in case of changes in salary Growth Rate and Interest Rate.

Trade receivables are presented net of impairment in the Balance sheet.

The Company classifies the right to consideration in exchange for deliverables as a receivable. Receivable is right to consideration that is unconditional upon passage of time.

C Contract Liabilities

Contract liability relate to payment received in advance for performance under contract. Contract liabilities are recognised as revenue at the time of sale of goods. Contract Liabilities includes Non current or current advances received from customers to deliver goods. Revenue recognised in the current reporting period to carried forward Contract liabilities:

The amount of revenue recognised during the year for the amount included in contract liability at the beginning of the year is

E Performance obligation and remaining performance obligation

The performance obligation is satisfied upon the delivery of Writing and Printing Paper and payment is generally due within 7 days to 30 days after the delivery.

The remaining performance obligation disclosure provides the aggregate amount of the transaction price yet to be recognized as at the end of the reporting period and an explanation as to when the Company expects to recognize these amounts in revenue. There were no remaining performance obligation as at 31st March 2024.

46 Segment Reporting

Based on the guiding principles laid down in Indian Accounting Standards (Ind-AS)-108 "Segment Reporting" the Chairman and Managing Director of the Company is the Chief Operating Decision maker (CODM). The Company's business activity falls within single segment namely manufacturing of “Writing and Printing Paper” Accordingly, the disclosure requirements of IndAS 108 are not applicable.

47 Dividend

The Board of Directors have recommended dividend of F3.00/- per equity share and special dividend of F2.00 /- per equity share amounting to F691.23 lakhs (previous year 2022-23 : F2.50/- per share and special dividend of F2.50 /- per share amounting to F691.23 lakhs) during their meeting held on 10th May 2024. The dividend, as recommended by the Board of Directors, if approved at the Annual General Meeting, would be paid subject to deduction of tax (TDS) at the prescribed rates as per Income Tax Act,1961 as amended by Finance Act 2020.

iii. Financial risk management

The principal financial assets of the Company include investments, loans, trade and other receivables, cash and bank balances that the Company derive directly from its operations. The principal financial liabilities of the company, include loans and borrowings, trade and other payables and the main purpose of these financial liabilities is to finance the day to day operations of the company.

The Company is exposed to market risk, credit risk and liquidity risk. The Company’s senior management oversees the management of these risks and that advises on financial risks and the appropriate financial risk governance framework for the Company.

This note explains the risks which the company is exposed to and policies and framework adopted by the company to manage these risks:-

(A) Market risk management

Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk comprises of Currency risk, Interest rate risk and other price risk. a.1 Foreign currency risk management

The Company’s functional currency is Indian Rupees (INR). The Company has exposure to foreign currency by way of trade payables /trade receivables and is therefore exposed to foreign exchange risk. Volatility in exchange rates affects the Company’s revenue from exports markets and the costs of imports, primarily in relation to raw materials with respect to the US-dollar

The exchange rate between the Indian rupee and foreign currencies has changed substantially in recent years and may fluctuate substantially in the future. Consequently the company is exposed to foreign currency risk and the results of the company may be affected as the rupee appreciates/ depreciates against foreign currencies. Foreign exchange risk arises from the future probable transactions and recognised assets and liabilities denominated in a currency other than company’s functional currency.

The company measures the risk through a forecast of highly probable foreign currency cash flows and manages its foreign currency risk by hedging appropriately. The Company uses foreign exchange forward contracts to mitigate the risk of changes in exchange rates on foreign currency exposures.

a.2 Foreign currency sensitivity analysis

Any changes in the exchange rate of USD against INR is not expected to have significant impact on the Company's profit due to the less exposure of these currencies. Accordingly, a 5% appreciation/depreciation of the INR as indicated below, against USD would have increased/reduced profit by the amounts shown below. This analysis is based on the foreign currency exchange rate variances that the Company considered to be reasonably possible at the end of the reporting period.The impact on the Company's profit before tax due to change in the fair value of monetary assets and liabilities including foreign currency derivatives on account of reasonably possible change in USD exchange rates (with all other variables held constant) is as under

b) Interest rate risk management

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The Company's exposure to the risk of changes in market interest rates relates primarily to the Company's debt obligations with floating interest rates.

As the Company has no significant interest-bearing assets, the income and operating cash flows are substantially independent of changes in market interest rates. The Company's exposure to the risk of changes in market interest rates relates primarily to the Company's debt obligations with floating interest rates, which are included in interest bearing loans and borrowings in these financial statements. The Company's fixed rate borrowings are carried at amortised cost. They are therefore not subject to interest rate risk, since neither the carrying amount nor the future cash flows will fluctuate because of a change in market interest rates.

Cash flow sensitivity analysis for variable rate instruments

The following table demonstrates the sensitivity to a reasonably possible change in interest rates on that portion of loans and borrowings affected. A change of 100 basis points in interest rates for variable rate instruments at the reporting date would have increased/(decreased) profit or loss by the amounts shown below. With all other variables held constant, the Company's profit before tax is affected through the impact on floating rate borrowings, as follows:

Equity investments are mainly held for strategic rather than trading purposes. Protection principle is given high priority by limiting company's investments top rated money market instruments only.

Equity price risk is related to change in market reference price of investments in equity shares held by the Company. The fair value of quoted investments held by the Company exposes it to equity price risks. ii) Mutual Fund Investments

The Company manages the surplus funds majorly through investments in debt based and equity mutual fund schemes. The price of investment in these mutual fund is Net Asset Value (NAV) declared by the Asset Management Company on daily basis is reflected by the movement in the NAV of invested schemes. The Company is exposed to price risk on such Investment schemes.

Mutual fund investments are susceptible to market price risk, mainly arising from changes in the interest rates or market yields which may impact the return and value of such investments. However, due to the very short tenor of the underlying portfolio in the liquid schemes, these do not hold any significant price risks. c.1 Equity price sensitivity analysis

The Company is exposed to equity price risks arising from equity investments. Equity investments are held for strategic rather than trading purposes. However, the company aims to monetize this investment to reduce its overall leverage. Any adverse movement in the share price has an impact on its profitability and vice versa.

Sensitivity

Following is the sensitivity analysis as a result of the changes in fair value of equity investments (non current) measured at FVTPL, determined based on the exposure to equity price risks at the end of the reporting period.

If equity prices had been 5% higher/ lower, profit would increase/ (decrease) as follows for: the year ended 31st March 2024 : by F20.82 lakhs the year ended 31st March 2023 : by F18.07 lakhs c.2 Mutual fund price sensitivity analysis

The sensitivity analysis has been determined based on Mutual Fund Investment at the end of the reporting period. If NAV had been 1% higher/lower, the profit for year ended 31st March 2024 would have increased/decreased by F /- 219.87 lakhs (previous year: increase/decrease by F /- 154.46 lakhs) as a result of the changes in fair value of mutual funds.

(B) Credit risk management

Credit risk arises from the possibility that a counter party will default on its contractual obligations resulting in financial loss to the Company. The Company is exposed to credit risk from its operating activities (primarily trade receivables, loans to employees and security deposits). The Company's credit risk in case of all other financial instruments is negligible.

To manage this, the Company periodically assesses the financial reliability of customers, taking into account the financial conditions, current economic trends, and analysis of historical bad debts and ageing of accounts receivable.

The Company considers the probability of default upon initial recognition of assets and whether there has been a significant increase in credit risk on an ongoing basis through each reporting period.

to whom goods are sold on credit terms in the normal course of business. Outstanding trade receivables are regularly monitored and any shipments to overseas customers are generally covered by Letter of Credit.

In determining the allowances for expected credit losses of trade receivables, the company has used a practical expedient by computing the expected credit loss allowance for trade receivables based on a provision matrix. The provision matrix takes into account historical credit loss experience and is adjusted for forward looking information. The expected credit loss allowance is based on the ageing of the receivables that are due and rates used in the provision matrix. In addition to this, Company provides for credit loss based on increase in credit risk on case to case basis. Management believes that the unimpaired amounts that are past due by more than 90 days are still collectible in full, based on historical payment behavior and analysis of customer credit risk The following is the movement in the allowance for lifetime expected credit loss and revenues generated from top five customers of the company.

The maximum exposure to credit risk at the reporting date is the carrying value of trade receivables as disclosed at Note 10. b. Other Financial Assets

The Company maintains exposure in cash and cash equivalents, time deposits with banks, investments in debt mutual funds. Investment of surplus funds are made only with approved counter parties. The maximum exposure to credit risk at the reporting date is the carrying value of each class of financial assets.

Write off policy

The financial assets are written off in case there is no reasonable expectation of recovering from the financial asset.

(C) Liquidity risk management

The objective of liquidity risk management is to maintain sufficient liquidity to meet financial obligations of the Company as they become due. The Company monitors rolling forecast of its liquidity position on the basis of expected cash flows. The Company’s approach is to ensure that it has sufficient liquidity or borrowing headroom to meet its obligations at all points in time. The Company manages the liquidity risk by maintaining adequate cash reserves, banking facilities and reserve borrowing facilities by continuously monitoring forecast and actual cash flows and by matching the maturity profiles of financial assets and liabilities.

The Company has access to various fund / non-fund based bank financing facilities. The amount of unused borrowing facilities (fund and non-fund based) available for future operating activities and to settle commitments as at 31st March 2024 F5773.44 lakhs (as at 31st March 2023 F1757.16 lakhs).

Exposure to liquidity risk

The below is the detail of contractual maturities of the financial liabilities of the company at the end of each reporting period along with contractual maturity of Financial assets:

There were no transfers between Level 1 and 2 in the period. Sensitivity of Level 3 financial instruments are insignificant.

The fair value of the financial instruments are determined at the amount that would be received to sell an asset in an orderly transaction between market participants. The following methods and assumptions were used to estimate the fair values:

Investments in mutual funds: Fair value is determined by reference to quotes from the financial institutions, i.e. net asset value (NAV) for investments in mutual funds declared by mutual fund house. NAV represents the price at which the issuer will issue further units of mutual fund and the price at which issuer will redeem such units for the investor.

Derivative contracts: The Company has entered into foreign currency contract(s) to manage its exposure to fluctuations in foreign exchange rates. These financial exposures are managed in accordance with the Company’s risk management policies and procedures. Fair value of derivative financial instruments are determined using valuation techniques based on information derived from observable market data, i.e., mark to market values determined by the Authorized Dealers Banks.

55 The company does not have any Benami property, where any proceeding have been initiated or pending against the company for holding any benami property under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988).

56 The company has not advanced or loaned or invested funds (either from borrowed funds or share premium or any other sources or kind of funds) by the company to or in any other person(s) or entity(ies), including foreign entities ("Intermediaries") with the understanding (whether recorded in writing or otherwise) that the Intermediary shall

a) directly or indirectly lend or invest in other person 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.

57 The company has not received any fund from any person or entity, including foreign entities ( Funding parties ) with the understanding (whether recorded in writing or otherwise) that the company shall

a) directly or indirectly lend or invest in other person or entities identified in any manner whatsoever by or on behalf of the funding party (Ultimate Beneficiaries) or

b) provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

58 There are no transactions which are not recorded in the books of accounts that has been surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961 (such as, search or survey or any other relevant provisions of the Income Tax Act, 1961).

59 Loans to Director: There are no loans or advances in the nature of loans that are granted to Promoters, Directors, KMPs and their related parties (as defined under Companies Act, 2013), either severally or jointly with any other person, that are:

a) repayable on demand; or

b) without specifying any terms or period of repayment

60 Compliance with number of layers prescribed under clause (87) of Section 2 of the Act read with Companies (restriction on number of layers) Rules, 2017 is not applicable as there is no subsidiary.

61 The Company uses an accounting software for maintaining its books of account which has a feature of recording audit trail (edit log) facility and the same has operated throughout the year for all relevant transactions recorded in the accounting software. Further, no instance of audit trail feature being tampered with was noted in respect of the accounting software.

63 Figures in bracket indicate deductions.

64 Previous year figures in the financial statements, including the notes thereto, have been reclassified wherever required to confirm to the current year presentation/classification.