(i) Provisions

A provision is recognized if, as a result of a past event, the Company has a present legal or constructive obligation that can be
estimated reliably, and it is probable that an outflow of economic benefits will be required to settle the obligation. If the effect of
the time value of money is material, provisions are determined by discounting the expected future cash flows at pre-tax rate that
reflects current market assessments of the time value of money and the risks specific to the liability.

The amount recognized as a provision is the best estimate of the consideration required to settle the present obligation at the
reporting date, taking into account the risks and uncertainties surrounding the obligation. When some or all of the economic
benefits required to settle a provision are expected to be recovered from a third party, the receivable is recognized as an asset if
it is virtually certain that the reimbursement will be received and the amount of receivable can be measured reliably.

Warranty costs are estimated on the basis of a technical evaluation and past experience. Provision is made for estimated liability
in respect of warranty costs in the year of sale of goods and is included in the Statement of Profit and Loss. The estimates used for
accounting for warranty costs are reviewed periodically and revisions are made, as and when required.

(j) Revenue recognition

Under Ind AS 115, the company recognized revenue when (or as) a performance obligation was satisfied, i.e. when ‘control’ of the
goods underlying the particular performance obligation were transferred to the customer.

Further, revenue from sale of goods is recognized based on a 5-Step Methodology which is as follows:

Step 1: Identify the contract(s) with a customer

Step 2: Identify the performance obligation in contract

Step 3: Determine the transaction price

Step 4: Allocate the transaction price to the performance obligations in the contract
Step 5: Recognise revenue when (or as) the entity satisfies a performance obligation
Contract liability is recognised when there is billings in excess of revenues.

The specific recognition criteria described below must also be met before revenue is recognized.

I. Sale of products

Revenue from sale of products is recognized at the point in time when control of the goods is transferred to the customer
at the time of shipment to or receipt of goods by the customers at an amount that reflects the consideration to which the
Company expects to be entitled in exchange for those goods or services.

The Company has concluded that it is the principal in its revenue arrangements as it typically controls the goods or services
before transferring them to the customer.

If the consideration in a contract includes a variable amount, the Company estimates the amount of consideration to which
it will be entitled in exchange for transferring the goods to the customer. The variable consideration is estimated at contract
inception and constrained until it is highly probable that a significant revenue reversal in the amount of cumulative revenue
recognized will not occur when the associated uncertainty with the variable consideration is subsequently resolved.

The goods and service tax (GST) is not received by the Company on its own account. Rather, it is tax collected on behalf
of the government. Accordingly, it is excluded from revenue. Additionally amount disclosed as revenue are excluding taxes
and net of return rebate, allowance etc.

The payment terms varies from customer to customer as per contract which includes advance payments and credit terms in
upto 30 to 60 days, based on customary business practices.

Trade receivables: A receivable represents the Company’s right to an amount of consideration that is unconditional (i.e., only
the passage of time is required before payment of the consideration is due).

Contract liabilities: A contract liability is the obligation to transfer goods or services to a customer for which the Company has
received consideration (or an amount of consideration is due) from the customer. If a customer pays consideration before
the Company transfers goods or services to the customer, a contract liability is recognized when the payment is made, or
the payment is due (whichever is earlier). Contract liabilities are recognized as revenue when the Company performs under
the contract.

(k) Retirement and other employee benefits
Short-term employee benefits

All employee benefits falling due within twelve months from the end of the period in which employees render the related services
are classified as short-term employee benefits, which includes benefits like salaries, wages, performance linked reward etc. and
are recognised as expenses in the period in which the employee renders the related service and measured accordingly.

Post-employment benefits

a) Gratuity

The Company has an obligation towards gratuity as per payment of Gratuity Act, 1972, a defined benefit retirement plan
covering eligible employees. The plan provides for a lump sum payment to vested employees at retirement, death while in
employment or on termination of employment of an amount based on the respective employee’s salary and the tenure of the
employment. The liability in respect of gratuity is recognised in the books of accounts based on actuarial valuation by an
independent actuary at each balance sheet date using projected unit credit method. The gratuity liability of the Company is
funded with Life Insurance Corporation of India, which is managed by separate trust set up the Company. Actuarial losses/
gains are recognised in the other comprehensive income and Loss in the year in which they arise.

b) Superannuation

Certain employees of the Company are also participants in the superannuation plan, a defined contribution plan. Contribution
made by the Company to the plan during the year is charged to Statement of Profit and Loss.

c) Provident fund

The Company makes contribution to the recognised provident fund - VPFIL Employees Provident Fund Trust for its employees,
which is a defined benefit plan to the extent that the Company has an obligation to make good the shortfall, if any, between the
return from the investments of the trust and the notified interest rate. The Company’s obligation in this regard is determined by
an independent actuary and provided for if the circumstances indicate that the Trust may not be able to generate adequate
returns to cover the interest rates notified by the Government. Company’s contribution to the provident fund is charged to
Statement of Profit and Loss.

d) Other long-term employee benefits
Compensated absences

As per the Company’s policy, eligible leaves can be accumulated by the employees and carried forward to the future
periods to either be utilised during the service, or encashed. Encashment can be made during service, or early retirement,
on withdrawal of scheme, at resignation and upon death of employee. Accumulated compensated absences are treated as
other long-term employee benefits. The Company’s liability in respect of other long-term employee benefits is recognised
in the books of accounts based on actuarial valuation using projected unit credit method as at Balance Sheet date by an
independent actuary. Actuarial losses/gains are recognised in the Statement of Profit and Loss in the year in which they arise.

(l) Income tax

Income tax expense comprises current and deferred tax. It is recognised in Statement of Profit and Loss except to the extent that
it relates to a business combination or to an item recognized directly in equity or in comprehensive income.

a) Current tax

Current tax comprises the expected tax payable or receivable on the taxable income for the year and any adjustment to the
tax payable or receivable in respect of previous years. The amount of current tax payable or receivable is the best estimate
of the tax amount expected to be paid or received after considering uncertainty related to income taxes, if any. It is measured
using tax rates enacted at the reporting date.

Current tax assets and liabilities are offset only if there is a legally enforceable right to set off the recognised amounts, and it
is intended to realise the asset and settle the liability on a net basis or simultaneously.

b) Deferred tax

Deferred tax is recognised in respect of temporary differences between the carrying amounts of assets and liabilities for
financial reporting purposes and the corresponding amounts used for taxation purposes.

Deferred tax assets are recognised on deductible temporary differences to the extent that it is probable that future taxable
profits will be available against which they can be used. Deferred tax assets - unrecognised or recognised, are reviewed at
each reporting date and are recognised/ reduced to the extent that it is probable/ no longer probable respectively that the
related tax benefit will be realised. Deferred tax is measured at the tax rates that are expected to apply to the period when
the asset is realised or the liability is settled, based on the laws that have been enacted or substantively enacted by the
reporting date. The measurement of deferred tax reflects the tax consequences that would follow from the manner in which
the Company expects, at the reporting date, to recover or settle the carrying amount of its assets and liabilities.

Deferred tax assets and liabilities are offset if there is a legally enforceable right to offset current tax liabilities and assets, and
they relate to income taxes levied by the same tax authority on the same taxable entity, or on different tax entities, but they
intend to settle current tax liabilities and assets on a net basis or their tax assets and liabilities will be realised simultaneously.

Entity has recognise the income tax consequences of dividends in profit or loss, other comprehensive income or equity
according to where the entity originally recognised those past transactions or events.

(m) Leases

Determining whether a contract contains lease

At inception of a contract, the Company determines whether the contract is, or contains, a lease. The contract is, or contains,
a lease if the contract conveys the right to control the use of an identified asset or assets for a period of time in exchange for
consideration, even if that right is not explicitly specified in a contract. At inception or on reassessment of a contract that contains
lease component and one or more additional lease or non-lease components, the Company separates payments and other
consideration required by the contract into those for each lease component on the basis of their relative stand-alone price and
those for non-lease components on the basis of their relative aggregate stand-alone price. If the Company concludes that it is
impracticable to separate the payments reliably, then right-of-use asset and Lease liability are recognised at an amount equal to
the present value of future lease payments; subsequently the liability is reduced as payments are made and an imputed finance
cost on the liability is recognized using the Company’s incremental borrowing rate.

Company as a lessee

At inception, the Company assesses whether a contract is or contains a lease. This assessment involves the exercise of judgement
about whether it depends on an identified asset, whether the Company obtains substantially all the economic benefits from the use
of that asset, and whether the Company has the right to direct the use of that asset.

The Company has elected to separate lease and non-lease components of contracts, wherever possible.

The Company recognizes a right-of-use (ROU) asset and a lease liability at the transition date/ lease commencement date. The
right-of-use asset is initially measured based on the present value of future lease payments, plus initial direct costs, and cost to
dismantle and remove the underlying asset or to restore the underlying asset or the site on which it is located, and lease payments
made at or before the commencement date, less any incentives received. The right-of-use asset is depreciated over the shorter
of the lease term or the useful life of the underlying asset. The right of-use asset is subject to testing for impairment if there is an
indicator for impairment.

At the commencement date, Company measures the lease liability at the present value of the future lease payments that are not
yet paid at that date discounted using interest rate implicit in the lease or, if that rate cannot be readily determined, the Company’s
incremental borrowing rate. Generally, the Company’s uses its incremental borrowing rate as the discount rate. The lease liability is
measured at amortised cost using the effective interest method. It is remeasured when there is a change in future lease payments
arising from a change in an index or rate, if there is a change in the Company’s estimate of the amount expected to be payable
under a residual value guarantee, or if the Company changes its assessment of whether it will exercise a purchase, extension or
termination option. When the lease liability is remeasured in this way, a corresponding adjustment is made to the carrying amount

of the right-of-use asset, or is recorded in profit or loss if the carrying amount of the right-of-use asset has been reduced to zero.
Contingent rents payments are recognised as an expense in the period in which they are incurred. Lease payments generally
include fixed payments and variable payments that depend on an index (such as an inflation index). When the lease contains an
extension or purchase option that the Company considers reasonably certain to be exercised, the cost of the option is included in
the lease payments. The Company presents right-of-use assets that do not meet the definition of investment property and lease
liabilities in separately from other assets/ liabilities in the balance sheet.

The Company has elected not to recognize right-of-use assets and liabilities for leases where the total lease term is less than or
equal to 12 months, or for leases of low value assets. The payments for such leases are recognized in the Standalone Statement
of Profit and Loss on a straight-line basis over the lease term.

Company as a lessor

Leases in which the Company does not transfer substantially all the risks and rewards incidental to ownership of an underlying
assets are classified as operating leases. Rental income from operating lease is recognised on a straight-line basis over the term
of the relevant lease unless the payments are structured to increase in line with the general inflation to compensate for the lessor’s
expected inflationary cost increase. Initial direct costs incurred in negotiating and arranging an operating lease are added to the
carrying amount of the leased asset and recognised over the lease term on the same basis as rental income. Contingent rents are
recognised as revenue in the period in which they are earned. Leases are classified as finance leases when substantially all of the
risks and rewards incidental to ownership of underlying asset is transferred from the Company to the lessee. Amounts due from
lessees under finance leases are recorded as receivables at the Company’s net investment in the leases. Finance lease income
is allocated to accounting periods so as to reflect a constant periodic rate of return on the net investment outstanding in respect
of the lease.

(n) Segment reporting

The Company is mainly in the business of manufacturing and trading of paper machine clothing for pulp, paper and board
industry. The Managing Director of the Company is identified as chief operating decision maker (CODM). The company has a
single reportable segment which is reviewed by Chief Operating Decision Maker (CODM).

(o) Foreign currency translation

(i) Functional and presentation currency

The functional currency of the Company is the Indian Rupee. These financial statements are presented in Indian rupees.

(ii) Transactions and balances

Monetary assets and liabilities denominated in foreign currencies are translated into functional currency at the exchange rate
at the reporting date. Non-monetary assets and liabilities that are measured at fair value in a foreign currency are translated
into functional currency at the exchange rate when fair value was determined. Non-monetary assets and liabilities that are
measured based on a historical cost in a foreign currency are translated at the exchange rate at the date of the transaction.
Exchange differences are recognised in profit and loss, except exchange differences arising from the translation of the
following items which are recognised in OCI.

- equity investment at fair value through OCI (FVOCI)

- a financial liability designated as a hedge of the net investment in a foreign operation to the extent that hedge is
effective; and

- qualifying cash flow hedges to the extent that the hedges are effective.

(p) Earnings per share

(i) Basic earnings per share

Basic earnings per share is calculated by dividing the profit attributable to the owners of the Company by the weighted
average number of equity shares outstanding during the financial year.

(ii) Diluted earnings per share

Diluted earnings per share adjusts the figure used in the determination of basic earnings per share to take into account:

- the after-income tax effect of interest and other financing costs associated with dilutive potential equity shares, and

- the weighted average number of additional equity shares that would have been outstanding assuming the conversion of
all dilutive potential equity shares.

(q) Critical estimates and judgements

The preparation of Financial Statements requires management to make judgments, estimates and assumptions that affect the
application of accounting policies and the reported amounts of assets, liabilities, income and expenses. Actual results may differ
from these estimates.

Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognized in
the period in which the estimates are revised and in any future periods affected. In particular, information about significant areas of
estimation uncertainty and critical judgments in applying accounting policies that have the most significant effect of the amounts
recognised in the financial statements is included in the following notes:-

(a) Defined benefit plans (refer note. 2 (l) and 35)

The costs of post-retirement benefit obligation are determined using actuarial valuations. An actuarial valuation involves
making various assumptions that may differ from actual developments in the future. These include the determination of the
discount rate; future salary increases and mortality rates. Due to the complexities involved in the valuation and its long-term
nature, a defined benefit obligation is highly sensitive to changes in these assumptions. All assumptions are reviewed at
each reporting date.

(b) Useful lives of property, plant and equipment and Intangible asset (refer note 2(c) and 3(a))

The Company reviews the estimated useful lives of property, plant and equipment at the end of each reporting period. At the
end of the current reporting period, the management determined that the useful lives of property, plant and equipment at
which they are currently being depreciated represent the correct estimate of the lives and need no change.

(c) Assessment of litigations

The Company is contesting litigations at various forums. These litigations are assessed by the Company to evaluate the
likelihood for which provision is required in the books or disclosure as contingent liability in the financial statements.

(r) Contingent liabilities

A contingent liability is a possible obligation that arises from past events whose existence will be confirmed by the occurrence
or non-occurrence of one or more uncertain future events beyond the control of the Company or a present obligation that is not
recognized because it is not probable that an outflow of resources will be required to settle the obligation. A contingent liability
also arises in extremely rare cases where there is a liability that cannot be recognized since it cannot be measured reliably. The
Company does not recognize a contingent liability but discloses its existence in financial statements.

(s) Cash flow statement

Cash flows are reported using the indirect method, whereby profit for the year is adjusted for the effects of transactions of a non¬
cash nature, changes in working capital and item of income or expenses associated with investing or financing cash flows. The
cash flows from operating, investing and financing activities of the Company are segregated. The Company considers all highly
liquid investments that are readily convertible to known amounts of cash to be cash equivalents.

(t) Investment property

Investment property is property held either to earn rental income or for capital appreciation or for both, but not for sale in the
ordinary course of business, use in the production or supply of goods or services or for administrative purposes. Upon initial
recognition, an investment property is measured at cost. Subsequent to initial recognition, investment property is measured at cost
less accumulated depreciation and accumulated impairment losses, if any.

Based on technical evaluation, the management believes a period of 30 years as representing the best estimate of the period over
which buildings are expected to be used. Accordingly, the Company depreciates investment property over a period of 30 years
on a straight-line basis. The useful life estimate of 30 years is different from the indicative useful life of relevant type of buildings
mentioned in Part C of Schedule II to the Act. Freehold land given as investment property is not depreciated.

u) Recent accounting pronouncements

Ministry of Corporate Affairs ("MCA") notifies new standard or amendments to the existing standards under Companies (Indian
Accounting Standards) Rules as issued from time to time. On March 31, 2025, MCA has not notified any new standards or
amendments to the existing standards applicable to the Company.

During the year ended 31 March 2025, the Company completed the construction of a building for own use amounting to Rs.118.04 million.
Since the company has no immediate use of this building, the company now intends to receive rental income from this construction by
entering into a facility sharing lease agreement with one of it’s associate enterprises for an initial period of 5 years. In view of above, the
company has considered the entire amount as investment property. The Company has also considered a portion of its building which is a
part of an existing lease agreement as investment property since going forward it will be a part of the new lease arrangement mentioned
above. Accordingly, the company has also reclassified an amount of Rs.13.54 million from Property, Plant and Equipment to Investment
Property as at year end.

The building is now held to earn rentals and has been leased to an associated enterprise under a lease agreement with an initial term of five
years effective April 1, 2025.

The investment property has been initially recognized in current year at cost which includes the cost of construction and any directly
attributable expenditure incurred to bring the asset to its intended use not on the fair value.

The fair value of the property has not been disclosed because it is not reliably measurable due to absence of active and frequent market
transactions for properties of a similar nature in the similar area as well as the location of the lease property. Consequently, there is insufficient
information to determine market evidence for a fair value.

Further the Company has no restriction on the realisability of its investment property and no contractual obligation to purchase, construct or
develop investment properties or for repairs, maintenance and enhancements.

(a) Fair valuation of financial assets and liabilities with short term maturities is considered as approximate to respective carrying
amount due to the short term maturities of these instruments.

(b) The fair value is determined by using the valuation model/technique with observable/ non-observable inputs and assumptions.
Level 1: Level 1 hierarchy includes financial instruments measured using quoted prices.

Level 2: The fair value of financial instruments that are not traded in an active market (for example, traded bonds) is determined
using valuation techniques which maximize the use of observable market data and rely possibly on entity-specific
estimates. If all significant inputs required to fair value an instrument are observable, the instrument is included in level 2.

Level 3: If one or more of the significant inputs is not based on observable market data, the instrument is included in level 3.

There are no transfers between level 1 and level 2 during the years.

37. Financial risk management

(A) Financial risk management

Risk management framework

The Company’s board of directors has overall responsibility for the establishment and oversight of the Company’s risk management
framework.

The Company, through three layers of defence namely policies and procedures, review mechanism and assurance, aims to
maintain a disciplined and constructive control environment in which all employees understand their roles and obligations. The
audit committee of the board with top management oversees the formulation and implementation of the Risk Management Policies.
The risks and mitigation plan are identified, deliberated and reviewed at appropriate forums.

The Company has exposure to the following risks arising from financial instruments:

- credit risk (see (i))

- liquidity risk (see (ii))

- market risk (see (iii))

- interest rate risk (see (iv))

- price risk (see (v))

Credit risk is the risk of financial loss to the Company if a customer or counter party to a financial instrument fails to meet its
contractual obligations, and arises principally from the Company’s receivables from customers.

The carrying amount of financial assets represents the maximum credit risk exposure.

Trade receivable and other financial assets

The Company has established a credit policy under which each new customer is analysed individually for creditworthiness
before the payment and delivery terms and conditions are offered. The Company’s review includes external ratings, if they
are available, financial statements and industry information etc.

In monitoring customer credit risk, customers are grouped according to their credit characteristics, including whether they
are an individual or a legal entity, their geographic location, industry, trade history with the Company and existence of
previous financial difficulties. The Company creates specific provision, if required, for credit impaired customers.

Expected credit loss for trade receivable:

The Company based on internal assessment which is driven by the historical experience / current facts available in relation to
defaults and delays in collection thereof, the credit risk for trade receivable is considered low except for impaired customers. The
Company estimates its allowance for trade receivable using lifetime expected credit loss. The balance (net of expected credit
loss allowance), excluding receivable from group companies is Rs. 277.35 million (31 March 2024 : Rs. 208.47 million).

Expected credit loss on financial assets other than trade receivable:

With regards to all financial assets with contractual cash flows other than trade receivable, management believes these to
be high quality assets with negligible credit risk. The management believes that the parties from whom these financial assets
are recoverable, have strong capacity to meet the obligations and where the risk of default is negligible and accordingly no
provision for expected credit loss has been provided on such financial assets. Break up of financial assets other than trade
receivables have been disclosed on balance sheet.

ii. Liquidity risk

Liquidity risk is the risk that Company will encounter difficulty in meeting the obligations associated with its financial liabilities
that are settled by delivering cash or another financial asset. The Company’s approach to managing liquidity is to ensure, as
far as possible, that it will have sufficient liquidity to meet its liabilities when they are due, under both normal and stressed
conditions, without incurring unacceptable losses or risking damage to the Company’s reputation.

The Company’s finance department is responsible for managing the short term and long term liquidity requirements. Short
term liquidity situation is reviewed regularly by finance. Long term liquidity position is reviewed on a regular basis by the
Board of Directors and appropriate decisions are taken according to the situation.

The company has sanctioned borrowing facilities, comprising, non-fund based limits from various bankers on unsecured
basis.

Exposure to the liquidity risk

The following are remaining contractual maturities of financial liabilities at the reporting date. The amounts are gross and
undiscounted.

Market risk is the risk that changes in market prices - such as foreign exchange rates - will affect the Company’s income or
the value of its holding of financial instruments. The objective of market risk management is to manage and control market
risk exposure within acceptable parameters, while optimising the return. The value of a financial instrument may change as
a result of changes in the interest rates, foreign currency exchange rates, equity price fluctuations, liquidity and other market
changes.

Currency risk

The Company is exposed to currency risk to the extent that there is a mismatch between currencies in which sales and
purchases are denominated and the functional currency of the Company. The currencies which the Company is exposed to
risk are EUR, USD, SEK, CNY, MYR, CAD, JPY and CHF.

The Company follows a policy to hedge its forex exosure by taking regular forward contracts to the extent possible. Any
residual risk is evaluated, including but not limited to, entering into forward contract.

Gross exposure to currency risk

The summary quantitative data about the Company’s exposure to currency risk are reported to management of the company
as follows:

(D) Key terms and conditions of related party transactions:

Transactions with related parties are made on terms equivalent to those that prevail in arm’s length transactions. Outstanding balances
at year end are unsecured and interest free and settlement occurs in cash. This assessment is undertaken each financial year through
examining the financial assumptions and the market in which the related parties operates.

40 A. Contingent liabilities to the extent not provided for:

(a) Labour case:

(i) Fifteen ex-contractual employees filed a case before the Industrial Tribunal-cum-Labour Court II, Haryana, seeking reinstatement
with continuity of service, back wages, and related benefits. The Labour Court ruled in their favor, and the Company challenged
the decision through a writ petition before the Hon’ble Punjab & Haryana High Court. Subsequently, eight of these employees
initiated execution proceedings. Although the Hon’ble High Court granted a stay in a related matter, the Civil Court, Faridabad,
ruled that the stay did not apply to the execution of the Labour Court award.

The Civil Court proceedings are ongoing, with objections raised by both parties on the Commissioner’s report regarding back
wages. Meanwhile, the Company’s writ petition was dismissed in August 2020, and Letter Patent Appeal is currently pending before
the Double Bench of the Hon’ble High Court. In compliance with Section 17-B of the Industrial Disputes Act, 1947, the Company
has disbursed Rs. 0.78 million to the workers. Based on view provided by legal counsel and internal management analysis, the
Company believes that a favorable outcome is probable. However, the financial impact, if any, is currently unascertainable and
will depend on future developments.

(ii) The Company is also involved in other labour-related cases where the liability is not presently quantifiable at various forums.
Based on view provided by legal counsel and internal management analysis, the Company believes that a favorable outcome is
probable. However, the financial impact, if any, is currently unascertainable and will depend on future developments.

(b) Provident Fund:

In February 2019, Supreme Court of India in its judgement clarified the applicability of allowances that should be considered to measure
obligations under Employees Provident Fund Act, 1952. The Company has been legally advised that there are interpretative challenges
on the application of judgement retrospectively and as such does not consider there is any probable obligations for past periods.
Accordingly, based on legal advice the Company has made a provision for provident fund contribution from the date of Supreme Court
order.

40 B.Other Matters:

(a) Haryana Tax on Entry of Goods into Local Area Act, 2008

During the year, the Company received notices of assessment under the Haryana Tax on Entry of Goods into Local Area Act, 2008 ("Haryana
Entry Tax Act") for the financial years 2015-16, 2016-17, and 2017-18, demanding entry tax amounting to Rs. 8.73 million. The Company
has challenged the validity of these notices on the grounds of lack of jurisdiction. Additionally, the Company has relied on the provisions
of Section 8(1) of the Haryana Entry Tax Act, which allows for the exclusion of the value of goods delivered outside the local area without
use or consumption, and the value of goods on which sales tax has been paid or is payable to the State, from the calculation of turnover.
Based on a legal assessment and the facts of the case, the Company believes that the likelihood of any cash outflow in respect of this
matter is remote.

(b) Income Tax Act, 1961

The Company received a transfer pricing order for A.Y. 2021-2022 in the current year. The Income tax authorities made an adjustment of
INR 50.91 million to the taxable income concerning the Commission sales and trading segment and raised a demand of Rs. 19.81 million.
The Company filed an appeal with the Income Tax Appellate Tribunal, Delhi and currently awaiting the final order. As of 31 March 2025,
the management, in consultation with its tax expert, has reassessed the exposure and strongly believes that the likelihood of liability
devolving upon the Company in this matter is remote.

48. Other statutory information :

(i) The Company do not have any transactions with companies struck off.

(ii) The Company has not traded or invested in Crypto currency or Virtual Currency during the financial year.

(iii) The Company have not any such transaction which is 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).

(iv) The Company do not have any Benami property, where any proceeding has been initiated or pending against the Company for
holding any Benami property.

(v) The Company do not have any charges or satisfaction which is yet to be registered with ROC beyond the statutory period.

(vi) The Company have not advanced or loaned or invested funds to any other person(s) or entity(ies), 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

(vii) The Company have not received any fund 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
Funding Party (Ultimate Beneficiaries) or

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

(viii) The company has not revalued its property, plant and equipment (including right-of-use assets) or intangible assets or both during
the current or previous year.

(ix) The company has no borrowings from banks and financial institutions on the basis of security of current assets.

(x) The company has not been declared wilful defaulter by any bank or financial institution or government or any government authority.

(xi) The company has complied with the number of layers prescribed under the Companies Act, 2013.

(xii) The company has not entered into any scheme of arrangement which has an accounting impact on current or previous financial
year.

(xiii) The Company is not a Core Investment Company (CIC) as defined in the regulations made by the Reserve Bank of India and the
Group (as per the provisions of the Core Investment Companies (Reserve Bank) Directions, 2016) does not have any CIC.

(xiv) The Company has not granted any loans to the promoters, directors, Key Managerial Person’s and the related parties (as defined
under Companies Act, 2013), either severally or jointly with any other person which are repayable on demand or without specifying
any terms or period of repayments.

For B S R & Co. LLP For and on behalf of the Board of Directors of

ICAI Firm Registration Number: 101248W/W-100022 Voith Paper Fabrics India Limited

Chartered Accountants

Ankush Goel Martin Bassmann R. Krishna Kumar

Partner Chairman Managing Director

Membership No. 505121 DIN : 10766607 DIN : 05344619

Deepti Gupta Kalyan Dasgupta

Director Finance Controller

DIN : 08481203 CMA No. : 25152

Pallavi D. Gupta C.S. Gugliani

Director Company Secretary

DIN : 06566637 FCS No. : 4301

Ram Sewak Sharma

Director

DIN : 02166194

Place : New Delhi Place : New Delhi

Dated : 22 May 2025 Dated : 22 May 2025