Note:As per the restructuring scheme being part of DRS which was consented by then secured lenders (representing more than 83% of total outstanding secured debts of the company) & circulated by erstwhile Hon’ble BIFR and partly implemented but subsequently withdrawn however continued to recognize in view of pendency of restructuring (refer note no. 37 hereinafter), the company is under an obligation to issue fresh equity to the tune of Rs. 26.51 crore (approx.) to its lenders upon its sanction however the same has since been withdrawn by the lender. Refer note no. 37.

Kotak Mahindra Bank Limited (KMBL) had raised a total claim of Rs. 2036.11 Lakhs (P.Y. Rs. 2036.11 Lakhs) in respect of certain foreign currency derivative transactions which were disputed being per se illegal as not within the regulatory permission of RBI and were entered into by the Company on the basis of incomplete disclosures and details provided by the Bank and thus, falls in the category of mis-selling by the Bank to the Company. On the basis of legal opinion, the Company had not admitted these claims of bank and filed a suit in the competent Civil Court of law. The Hon’ble Civil Court in an ex-parte judgment vide its order dated 29.11.2018 declared these derivative transactions as void ab-initio being illegal. An appeal of KMBL against the order as passed by the Hon’ble Civil Court is pending before Hon’ble High Court at Allahabad. Besides this, KMBL has filed an Original Application (O.A.) before Hon'ble Debt Recovery Tribunal, Mumbai (DRT) for recovery of its above claims then amounting to Rs. 601.11 Lakhs (P.Y. Rs. 601.11 Lakhs) in respect of these foreign currency derivative transactions. The Hon'ble DRT vide an interim order has restrained the Company from selling its certain fixed assets. The OA is pending adjudication before the DRT Mumbai. KMBL has also filed a winding up petition before the Allahabad High Court for the above said claims wherein also the Company contested and objected the maintainability of Petition. The same is under consideration of the Hon’ble Allahabad High Court.

37. During earlier year, the lenders having more than 83% of the secured debts of the Company revoked their consent to the DRS/settlement scheme circulated by erstwhile Hon’ble BIFR, interalia containing the restructuring of the debts of the Company, which was partly implemented. The Company objected to the said revocation of consent being unjustified and beyond terms of the scheme and further submitted an offer for settlement. M/s Edelweiss Assets Reconstruction Company Ltd., (presently holding more than 99% of the total secured debt of the Company) (EARC), had filed an OA before the DRT and further under the provisions of SARFAESI has auctioned secured properties and have adjusted part of their dues with the realization made thereof. The Company was in discussion with EARC for settlement of its balance dues and Management of the Company with an expectation to get the revised settlement/restructuring proposal approved from lenders and accordingly, the Company would be meeting its revised financial obligations however in the meantime EARC has filed an application U/s 7 of the Insolvency and Bankruptcy Code (IBC), 2016 before Hon’ble National Company Law Tribunal, Allahabad Bench (NCLT). Vide its order dated 13.9.2024, Hon’ble NCLT’s has admitted the above petition to initiate Insolvency proceeding, declared Moratorium against company and appointed Mr. Hemant Sharma having IBBI Regn No. IBBI/IPA-002/IP-N00015/2016-17/10019 as Interim Resolution Professional (IRP) in the matter. EARC has filed their claim for Rs. 6,11,939.59 lakh as on 13.9.2024 against the company. Further the Committee of Creditors (CoC) in its meeting passed the resolution for appointment of Mr. Hemant Sharma to continue to act as Resolution Professional in the matter and thereupon he took-over the management and operations of the Corporate Debtor in terms of Section 23 of the Code. The Company, at present, is under the Corporate Insolvency Resolution Process (“CIRP”) in terms of provisions of Insolvency & Bankruptcy Code, 2016 (“IBC/the Code”). Further, resolution plans for company were invited under the CIRP process against which prospective resolution applicants have submitted their plans which were presented to the CoC for its approval and in case of approval a plan by the CoC, the plan will need to be filed with the Hon’ble NCLT for its approval. The future prospects of the company, as such, would be determined on the completion of CIRP. As per the Code it is required that the Company be managed as a going concern during the CIRP. Also the Board of Directors (Power Suspended) of the company have recommended to the RP to continue with the maintenance of the status of company as “Going Concern” in view of above and its expectation to get the revised settlement/restructuring proposal approved from lenders and accordingly, the Company would be meeting its revised financial obligations.

In view of above, the financial statements of the Company for the financial year ended on March 31, 2025 have been prepared on going concern assumption basis and continue with the earlier consented restructuring scheme. Hence, no provision considered necessary in these accounts towards interest on entire secured loans & part of principal secured loan waived earlier and impact on retained earnings thereon totaling to Rs. 212917.26 Lakh as per provisions of earlier consented scheme, which the Company continues to give effect. The impact, arising upon approval of the revised settlement/resolution plan, will be given effect in the financial statements of the year of approval by the Hon’ble NCLT.

38. Certain Property, Plant and equipment having the Gross Value of Rs. 1552.93Lakh (net carrying value after impairment Rs. 207.61Lakhs) of erstwhile leased units at Kashipur & Jaspur are in the possession of SIDCUL, the lesser, due to pending of payment of their lease charges.No further depreciation on assets has been considered in these books since assets are not in use.

39. Deferred Tax adjustments resulting from items of timing differences have been measured as on 31.03.25 using the rates and tax laws enacted or substantially enacted and the same results into the Deferred Tax Assets (net), which has not been recognized in the absence of virtual certainty of its realization in near future by the Company.

40. There is no amount outstanding on account of unclaimed dividend as on date, as per Section 124 of the Companies Act, 2013.

41. The balances of trade receivable and loans & advances are subject to confirmation, reconciliation and consequential adjustment, if any, which in the opinion of the management will not be material.The Current liabilities and non-current liabilities as reflected in the balance sheet are subject to Confirmation, reconciliation and consequential adjustment, if any, and are before considering the impact of counter claims, the company has against alleged creditors/lenders. On considering the said counter claims, the management is sure, that nothing payable will remain to the said alleged creditors/lenders. In view of the same, the statement of current and non-current liabilities in the balance sheet shall not be considered as acknowledgement of dues by the Company.

42. Employee Benefits: The company is yet to pay the final dues to its ex-employees. The excess /short, if any, payable upon settlement is being recognized in the year of final settlement. Provisions in respect of Gratuity & Leave encashment payable have been retained to the extent of the amount estimated to be payable.

47. All the title deeds of immovable properties of the company are held in the name of company only.

48. Financial risk management

(i) Financial instrument by category:

a) Investment in equity shares of subsidiaries are measured in accordance with Ind AS 27, “Consolidated and Separate Financial Statements” and investment in equity share of other entities are measured in accordance with Ind AS 103 'Financial Instruments' issued by the “Ministry of Corporate Affairs”, Government of India.

b) For amortised cost instruments, carrying value represents the best estimate of fair value except investment in other debentures.

(ii) Risk management

The Company’s activities expose it to market risk, liquidity risk and credit risk. The Company’s Board of Directors (power suspended) and Resolution Professional have overall responsibility for the establishment and oversight of the Company’s risk management framework. This note explains the sources of risk which the entity is exposed to and how the entity manages those risks.

A) Credit risk

Credit risk is the risk that a counter party fails to discharge its obligation to the Company. The Company’s exposure to credit risk is influenced mainly by cash and cash equivalents, trade receivables and financial assets measured at amortised cost. The Company continuously monitors defaults of customers and other counterparties and incorporates this information into its credit risk controls. Credit risk related to cash and cash equivalents and bank deposits is managed only by accepting highly rated banks and diversifying bank deposits. Other financial assets measured at amortized cost include loans to employees, security deposits and others. Credit risk related to these other financial assets is managed by monitoring the recoverability of such amounts continuously, while at the same time internal control system in place ensures the amounts are within defined limits.

Credit risk management: The Company assesses and manages credit risk of financial assets based on following categories arrived on the basis of assumptions, inputs and factors specific to the class of financial assets.

a) Low credit risk

b) Moderate credit risk

c) High credit risk

Credit risk exposures: The Company’s trade receivables do not have any expected credit loss as they are generally within the credit period. In case of non-recoverability in extreme cases, the Company, accordingly, provides for the same in its books of account instead of writing it off permanently.

B) Liquidity risk

Prudent liquidity risk management implies maintaining sufficient cash and marketable securities and the availability of funding through an adequate amount of committed credit facilities to meet obligations when due. Due to the nature of the business, the Company maintains adequate liquidity for meeting its obligations by monitoring the Company’s liquidity position and cash and cash equivalents on the basis of expected cash flows from the operations.

C) Market risk

Market risk is the risk of changes in the market prices on account of foreign exchange rates, interest rates and Commodity prices, which shall affect the Company’s income or the value of its holdings of its financial instruments. The objective of market risk management is to manage and control market risk exposure within acceptable parameters, while optimizing the returns.

a) Currency risk

The Company undertakes transactions denominated in foreign currencies, which are subject to the risk of exchange rate fluctuations. Financial assets and liabilities denominated in foreign currency, except the Company’s net investments in foreign operations (with a functional currency other than Indian Rupee), are subject to reinstatement risks.

b) Interest risk

i) Assets:The Company’s fixed deposits are carried at fixed rate. Since the fixed deposits are very nominal & not material, therefore to that extent, the Company is at risk on account of interest rate.

ii) Liabilities:The Company had borrowings from banking institutions, majorly whereof are assigned to an Asset Reconstruction Company (ARC). The Company has recognized the liability on account of borrowings as per scheme consented by lenders during BIFR proceedings. However, the outstanding of banks and ARC has since been classified as NonPerforming assets and action for possession of assets charged to lenders/ARC has since been undertaken and an application under section 7 of the OBC have been initiated, the Company’s liability towards interest etc. will be accounted based on the approval of resolution plan submitted by the Prospective Resolution Applicant, if any,and to that extent, the Company is at risk on account of interest rate.

49. The figures for the previous period have been restated, regrouped and reclassified wherever required to comply with the requirement of Ind AS and Schedule III.