At the Meeting of Board of Directors held on 13th February'2023, it was decided to diversify business operations and explore new avenues in the industry by setting up a carton manufacturing unit for which purchase of land was approved against which an advance of Rs.349 lacs was agreed to be paid to a Director of the Company on the condition that the registration formalities in favour of the Company should be completed within 45 days. As per the terms of the agreement, the entire advance paid was received back from the Director as on the date of this Balance Sheet.

(b) Terms/rights attached to equity shares

The Company has issued only one class of shares referred to as Equity Shares having a par value of Rs.10/- each. Each holder of Equity Shares is entitled to one vote per share.

(i) Term Loan is secured by first pari-passu charge on the property, plant & machinery owned by or belonging to the Company both present and future, and by second pari-passu charge on the current assets of the Company and are guaranteed by K Vijay Kumar, Managing Director and K V Naga Lalitha, Director. The Company has used the borrowings for the purposes for which it was taken

Term Loans also include Rs.260.42 lacs @ 8.25 p.a. received under Guaranted Emergency Credit Line Scheme.

APSPDCL has charged electricity duty of Rs.1.00 per unit for the units consumed, as reflected in the monthly electricity bills (August'2022 to August'2023). The Company subsequently filed a petition with the Andhra Pradesh High Court challenging the excess electricity duty. The Company has paid electricity duty of 6 paise per unit to APSPDCL against the Rs.1.00 per unit charged APSPDCL. The Company has recognized the remaining amount i.e., 0.94 paise per unit as a provision in the books of accounts upto August'2023.

On 15.09.2023, the High Court of Andhra Pradesh, Amaravathi, in its interim order in W.P.No.16619 of 2022 and related cases, directed APSPDCL to refund or adjust the excess electricity duty collected beyond 6 paise per unit from the consumers. Based on the interim order of Honble AP High Court, the company has reversed the provision (0.94 paise per unit) recognized till August'2023. The amount of provision reversal relating to current Financial Year 2023-24 is Rs.46.11 lacs and provision reversed relating to Financial Year 2022-23 is Rs.76.58 lacs.

Note: 2

On February 24, 2023, the Andhra Pradesh Electricity Regulatory Commission (APERC) issued a notice to the Company, demanding a deposit of Rs.43,04,000/- due to a shortfall in meeting the Renewable Power Purchase Obligation (RPPO) Regulations towards purchase of electricity through open access. The Company has recorded this amount as a provision under "Power Bill Payable." Currently, the company is working on identifying remedial actions to address this demand.

The Company has availed cash credit facilities from HDFC Bank Limited. This facility is secured by first pari-passu charge against all current assets, present and future, and by second pari-passu charge on the entire property, plant & machinery of the Company including land and buildings, and are guaranteed by K Vijay Kumar, Managing Director and K V Naga Lalitha, Director. The loans are repayable on demand and carries interest @ 9%. The Company has used the borrowings for the purposes for which it was taken

Dues to Micro, Small and Medium Enterprises have been determined to the extent such parties have been identified on the basis of information collected by the Management. This has been relied upon by the auditors. The amount of dues payable to Micro, Small and Medium Enterprises are as follows:

28 Other Statutory information:_

The Company does not have any Benami property, where any proceeding has been initiated or pending against the Company for holding any ' ⁾ Benami Property.

(ii) The Company does not have any charges or satisfactory which is yet to be registered with ROC beyond the statutory period.

(iii) The Company has not traded or invested in Crypto currency or Virtual Currency during the Financial Year.

The Company has not received any fund from any person(s) or entities, 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.

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

(vi) The Company has no transactions with Companies struck off under Companies Act.

The Company has no transactions which are not recorded in the books of accounts that has been surrendered or disclosed as income during the

(vii) 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).

The company has filed a writ petition before the Honorable High Court of Andhra Pradesh, challenging the excess electricity duty levied by APSPDCL. On 15.09.2023, the Honorable High Court of Andhra Pradesh, Amaravati, through interim order in W.P. Nos. 16619 of 2022 and related cases, directed APSPDCL to refund or adjust the excess electricity duty collected beyond 6 paise per unit from the consumers. During the Financial Year 2023-24, by virtue of the above interim order of Honble AP High Court, the company has reversed the entire provision created for Electricity Duty. However, the Final Judgement is yet to be pronounced by the Honorable High Court of Andhra Pradesh.

31 Restatement of financial statements

In accordance with Ind AS 8 (Accounting Policies, Changes in Accounting Estimates, and Errors) and paragraph 40A of Ind AS 1 (Presentation of Financial Statements), the management has retrospectively restated the financial statements for the year ended 31 March 2023 to correct prior period errors as follows:

An amount of Rs. 163.17 lakhs was charged to deferred tax in the profit and loss account for the financial year 2022-23 due to prior period adjustments. Consequently, the revised deferred tax as of 31 March 2023 is Rs. 272.79 lakhs, compared to the previously reported deferred tax asset of Rs. 453.41 lakhs. This adjustment is made in compliance with Ind AS 8 regarding accounting policies, changes in accounting estimates, and errors.

32 Employee benefits obligation

Defined contribution plans - Provident fund:

Contribution towards employee provident fund, which is a defined contribution plan for the period aggregated to Rs 30.36 lacs charged in the statement of profit and loss.

33 Defined benefit plan - Gratuity:

In accordance with the 'Payment of Gratuity Act, 1972' of India, the Company provides for gratuity, a defined retirement benefit plan (the 'Gratuity Plan') covering eligible employees. Liabilities with regard to such gratuity plan are determined by an independent actuarial valuation and are charged to the Statement of Profit and Loss in the period determined. The gratuity plan is administered by Life Insurance Corporation of India.

Previous year figures have been regrouped / reclassified wherever necessary to confirm to the current year classification.