(b) Equity Shares:
The Equity Shareholders have:- The right to receive dividend out of balance of net profits remaining after payment of dividend to the preference shareholders.
The dividend proposed by Board of Directors is subject to approval of shareholders in the ensuing Annual General Meeting.
- The Company has only one class of Equity Shares having face value of Rs. 10/- each and each shareholder is entitled to one vote per share.
- In the event of winding up, the equity shareholders will be entitled to receive the remaining balance of assets if any, after preferential payments and to have a share in surplus assets of the Company, proportionate to their individual shareholding in the paid up equity capital of the Company.
NOTE 17 : SHARE CAPITAL (Contd..)
iii) Capital Redemption Reserve Represents the statutory reserve created at the time redemption of Preference Share Capital and buy back of Equity Share Capital, which can be applied for issuing fully paid-up bonus shares.
iv) Capital Reserve represents the excess of consideration received against the sale of identifiable assets.
v) Debenture Redemption Reserve created out of the profits which is available for the purpose of redemption of debentures.
A. NCD of Rs. 110.55 Crore are secured by means of first pari passu mortgage/charge on the fixed assets of the Unit JKPM and CPM of the company. These Term Loans are/shall be repayable as under:
1 NCDs of Rs. 110.55 Crore is repayable in 5 Half yearly installments from September 2026 to September 2028.
B. Term Loans of Rs. 83.99 Crore (FIs - Rs. Nil, Banks Rs. 83.99 Crore) and NCD of Rs. 67.33 Crore is secured by means of first pari passu mortgage/charge on the Property, Plant & Equipment , both present and future, of Unit JKPM of the company. These Term Loans are/shall be repayable as under :-
1 Term Loan of Rs. 83.99 Crore is repayable in total 6 quarterly installments from June 2026 to September 2027.
2 NCDs of Rs. 67.33 Crore is repayable in 7 Half yearly installments from May 2026 to May 2029.
C. Term Loans of Rs. 1255.62 Crore (FIs - Rs. 179.86 Crore, Banks Rs. 1075.76 Crore) is secured by means of first pari passu mortgage/charge on the fixed assets, both present and future, of Unit CPM of the company. These Term Loans are/shall be repayable as under :-
1 Term Loans aggregating to Rs. 689.88 Crore are repayable in total 198 equal quarterly-instalments from April
2025 to March 2036.
2 Term Loans aggregating to Rs. 370.62 Crore are repayable in total 18 equal half-yearly installments from June
2026 to June 2031.
3 Term Loans of Rs. 195.12 Crore are repayable in 22 quarterly installments from June 2026 to September 2031.
D. Term Loan of Rs. 19 Crore (Banks Rs. 19 Crore) is secured by means of first mortgage/charge on the fixed assets, both present and future, of Unit Securipax of the Company. These Term Loans are/shall be repayable as under:
1 Term Loans aggregating to Rs. 19 Crore are repayable in total 144 monthly instalments from April 2026 to Nov 2030.
E. Secured Term loans from Financial Institutions and Banks have been reduced by Rs. 1.70 Crore (FIs - Rs. 0.66 Crore, Banks Rs 1.03 Crore) and NCDs have been reduced by Rs. 0.57 Crore due to effective rate of interest.
F. Secured Term loans from Financial Institutions and Banks include Rs. 649.74 Crore foreign currency loans. Certain charges are in the process of satisfaction.
G. Lease Liabilities aggregating to Rs. 90.73 Crore is repayable in total 928 equal monthly installments from April 2026 to September 2041.
H. Public deposits are due for repayment in Apr-26 to Sep-28.
1) Working Capital Borrowings of Rs. 162.76 Crore are secured by hypothecation of entire current assets including Raw Materials, Finished Goods, Stock-in-Process, Stores & Spares and Book Debts of Unit JKPM and Unit CPM of the Company
2) Working Capital Borrowings of Rs. 10 Crore are secured by hypothecation of entire current assets of Units Horizon Packs of the Company and further secured by Movable Fixed Assets , both present and future of Unit Horizon Packs of the Company
3) Working Capital Borrowings of Rs. 14.57 Crore are secured by hypothecation of Raw Materials, Finished Goods, Stock-inProcess, Stores & Spares and Book Debts of Unit Securipax Packaging of the Company and further secured by Movable Fixed Assets , both present and future of Unit Securipax Packaging of the Company
4) Working Capital Borrowings of Rs. 19.05 Crore are secured by hypothecation of Raw Materials, Finished Goods, Stock-inProcess, Stores & Spares and Book Debts of Unit Packaging Solutions of the Company. It is also secured additionally by way of negative lien on the property,plant and equipment of Unit Packaging Solutions of the company.
*includes Buyer's Credit Rs. 33.65 Crore (PY Rs 2.24 Crore)
ii Details of loans given, investments made and guarantee given covered U/s 186(4) of the Companies Act 2013
The company has given loan to Subsidiaries amounting to Rs. 47.00 Crore (Previous year Rs. 14.50 Crore ) and other parties amounting to Rs. 133 Crore (Previous year Rs.NIL) for general business purpose.There are no investment made by the company other than those stated under Note no 4 and 9 of the financial statements
NOTE 40 : a) The Company had invested Rs.30.89 Crores in a Jointly Controlled Entity (JCE) which has plantation operations in Myanmar through its subsidiary in Singapore. Operations at JCE has been impacted due to economic disruptions and Banking restrictions in Myanmar. Plantation / biological assets are in satisfactory condition. However considering the facts stated above, as a matter of prudence the Company had made provision of Rs.11.10 Crores against its investment in subsidiary of Rs. 22.59 Crores.
b) Sales include export incentives of Rs. 7.87 Crore (Previous year Rs. 9.90 Crore).
c) Interest Income includes Rs. 0.55 Crore (Previous year Rs 0.57 Crore) on Deposits with Banks and Rs. 21.71 Crore (Previous year Rs. 35.17 Crore) on others.
d) Scrap sale of Rs. 67.10 Crore (Previous year Rs. 63.91 Crore) has been netted off from Consumption of Stores and Spares.
e) During the current year, the Company has recognised an amount of Rs. 7.10 Crore (Previous Year: Rs.NIL) in the Statement of Profit and Loss by way of amortisation of the said Deferred Government Incentive. As at 31st March 2026, the unamortised balance of Deferred Government Incentive (against total capital subsidy Rs.40.09 Crore) standing in the books amounts to Rs. 32.99 Crore (Previous Year: Rs.NIL).
The Company is recognizing government grants on the basis of reasonable certainty that it will comply with the relevant conditions attached to them and the incentive/ grant will be received. Accordingly, during the year the Company has not recognized government incentive to the extent of uncertainty involved relates to the amount which is yet to be received.
NOTE 44 : The Company has used an accounting software for maintaining its books of accounts during the year ended 31st March 2026, which has a feature of recording audit trail (edit log) facility and operated throughout the year except (a) the audit trail feature was not enabled for certain relevant tables at the application level; (b) audit trail is not enabled at database level; and (c) privileged access is not restricted to the authorised users to make direct changes to audit trail settings. The audit trail has been preserved by the company as per the statutory requirements for record retention.
NOTE 45 : The Board of Directors has recommended a final Dividend of Rs.4 /- per share (40%), on the Equity Share Capital for the financial year ended 31st March, 2026.
NOTE 46 : The Board of Directors of the Company at its meeting held on 13th December 2024, had approved a Composite Scheme of Arrangement ("the Scheme") under Sections 230-232 (read with Section 66 and other applicable provisions) of the Companies Act, 2013 between the Company (Transferee Company) its subsidiaries namely JKPL Utility Packaging Solutions Private Limited (formerly Manipal Utility Packaging Solutions Private Limited) ("Transferor Company 1" or "TC-1"), Securipax Packaging Private Limited ("Transferor Company 2" or "TC-2"), Horizon Packs Private Limited ("Transferor Company 3" or "TC-3"), Enviro Tech Ventures Limited ("Demerged Company / Transferor Company 4" or "ETVL"), PSV Agro Products Private Limited ("Resulting Company" or "PSV") and their respective shareholders. The Hon'ble National Company Law Tribunal, Ahmedabad Bench ("NCLT"), vide its Order dated 3rd February 2026, sanctioned the Scheme. The certified copy of the said Order was filed with the Registrar of Companies on 15th March 2026, being the Effective Date of the Scheme.
Impact of the effective part of the Scheme has been given in these financial statements. Accordingly, in terms of the Part C of the Scheme, TC-1, TC-2 and TC-3 stand amalgamated w.e.f. the Appointed Date 1 (1st April 2024). Part D, Part E, Part F and Part G of the Scheme which are effective from Appointed Date 2 (1st April 2025) which inter alia includes (i) demerger of the Demerged Undertaking of ETVL into PSV; (ii) amalgamation of Transferor Company 4 with and into the Transferee Company; and (iii) reduction and conversion of Redeemable Preference Shares held by the Transferee Company in Transferor Company 4 into unsecured loan.
(a) Enviro Tech Ventures Private Limited (Formerly known as PSV Agro Products Pvt Ltd) (ETVL) became an Associate w.e.f. 1st April 2025.
(b) Since the amalgamated entities are under common control, the accounting of the said amalgamation has been done applying "Pooling of Interest Method" as laid down in Appendix C - 'Business Combinations of Entities under Common Control' of Ind AS 103 notified under Section 133 of the Companies Act read with the Companies (Indian Accounting Standards) Rules, 2015. In accordance with the "Pooling of Interest Method", the Company has recorded the assets and liabilities and reserves of the amalgamating companies at the carrying values as appearing in the consolidated financial statements of the Company.Further,the previous year's figures have been restated to give effect of Scheme from the beginning of the preceding period i.e. 1 April 2024 as required under Appendix C of Ind AS 103
(d) Upon amalgamation of the TC-1, TC-2 and TC-3, the Authorised share capital of the Company increased to be Rs. 891,46,66,290/- with effect from 1st April 2024 (Appointed Date 1) and to be Rs.12,26,46,66,290 with effect from 1st April 2025 (Appointed Date 2) on giving affect of Part D,E,F and G of the Scheme. Further,the previous year's comparative figures have been restated to give effect of the Scheme.
(e) The necessary steps and formalities in respect of transfer of and vesting in the properties, bank balances, licenses, approvals and investments in favor of the Company and modification of charges are under implementation.
Summarized Financial information of the revised standalone Financial statements as at March 31, 2025 (being the comparative period presented) is as follows:
a) The Company does not have any transactions with companies struck off.
b) The Company does not have any benami property, and no proceeding has been initiated or pending against the Company
for holding any benami property.
c) The Company have not traded or invested in crypto currency or virtual currency during the financial year.
d) 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:
(i) . 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
(ii) . Provide any Guarantee, Security, or the like to or on behalf of the Ultimate Beneficiaries.
e) 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:
(i) . 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
(ii) . Provide any Guarantee, Security, or the like on behalf of the ultimate beneficiaries.
g) The Company has no 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.
h) The Company have not been declared willful defaulter by any Banks or any other Financial Institution at any time during the financial year.
NOTE 50 : EMPLOYEE BENEFITS
The Company participates in defined contribution and benefit schemes, the assets of which are held (where funded) in separately administered funds. For defined contribution schemes the amount charged to the statements of profit or loss is the total of contributions payable in the year.
a) Defined Contribution Plans:-
Amount recognized as an expense and included in Note 32 Item "Contribution to Provident and Other Funds Rs. 0.73 Crore (Previous year Rs. 0.71 Crore) for Superannuation Fund.
b) Other long-term benefits
i) Amount recognized as an expense and included in Note 32 Item "Salaries, Wages, Allowances etc. Rs. 11.13 Crore (Previous year Rs. 6.14 Crore) for long term compensated Absences.
(ii) Long term compensated Absenses past service cost Rs.6.45 Crore has been recognised in exceptional items."
c) Defined benefits plans
(i) Amount recognized as an expense and included in Note 32 & Note 44 "Contribution to Provident and Other Funds" Rs. 15.95 Crore (Previous year Rs.15.27 Crore) for Provident and other fund.
(ii) Gratuity Expense Rs. 6.06 Crore (Previous year Rs. 5.02 Crore) has been recognized in "Contribution to Provident and Other Funds" under Note 32. as per Actuarial Valuation
The fair value of financial assets and liabilities are included at the amount at which the instrument could be exchanged in a current transaction between willing parties, other than in a forced or liquidation sale.
The following methods and assumptions were used to estimate the fair values.
A The fair values of derivatives are on MTM as per Bank
B Company has opted to fair value its mutual fund investment through statement of profit & loss
C Company has opted to fair value its quoted investments in equity share through OCI
D As per Para D-15 of Appendix D of Ind AS 101, the first time adopter may chose to measure its investment in subsidiaries, JVs and Associates at cost or at fair value. Company has opted to value its investments in subsidiaries, JVs and Associates at cost.
E Company has adopted effective rate of interest for calculating Interest. This has been calculated as the weighted average of effective interest rates calculated for each loan. In addition processing fees and transaction cost relating to each loan has also been considered for calculating effective interest rate.
* The carrying amounts are considered to be the same as their fair values due to short term nature.
Fair value hierarchy
Level 1 - Quoted prices (unadjusted) in active markets for identical assets or liabilities.
Level 2 - Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices).
Level 3 - Inputs for the assets or liabilities that are not based on observable market data (unobservable inputs).
NOTE 53.1 : Financial risk factors
The Company's operational activities expose to various financial risks i.e. market risk, credit risk and risk of liquidity. The Company realizes that risks are inherent and integral aspect of any business. The primary focus is to foresee the unpredictability of financial markets and seek to minimize potential adverse effects on its financial performance. The primary market risk to the Company is foreign exchange risk & interest rate risk. The Company calculates and compares the alternative sources of funding by including cost of currency cover also. Whenever, the currency cover costs are such as to neutralize the advantage in foreign currency, loans are hedged so as to not to lose advantage. The Company uses derivative financial instruments to reduce foreign exchange risk exposures.
i. Credit Risk
The Company evaluates the customer credentials carefully from trade sources before appointment of any distributor and only financially sound parties are appointed as distributors. The Company secures adequate deposits from its distributor and hence risk of bad debt is limited. The credit outstanding is sought to be limited to the sum of advances/deposits and credit limit determined by the company. The company has stop supply mechanism in place in case outstanding goes beyond agreed limits.
ii. Market risk
Market risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate due to fluctuation in market prices. These comprise three types of risk i.e. currency rate , interest rate and other price related risks. Financial instruments affected by market risk include loans and borrowings, deposits, investments, and derivative financial instruments. Foreign currency risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in foreign exchange rates. 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. Regular interaction with bankers, intermediaries and the market participants help us to mitigate such risk.
a.) Foreign Currency Risk and sensitivity
The primary market risk to the Company is foreign exchange risk. The Company uses derivative financial instruments to reduce foreign exchange risk exposures and follows its risk management policies to mitigate the same. After taking cognisance of the natural hedge, the company takes appropriate hedges to mitigate its risk resulting from fluctuations in foreign currency exchange rate(s).
The Company's exposure to the risk of changes in market interest rates relates primarily to long term debt. The Company has entered into various interest rate swap contracts, in which it agrees to exchange, at specific intervals, the difference between fixed and variable interest amounts calculated by reference to an agreed upon principal amount. Borrowings at variable rates exposes to cash flow risk. With all other variables held constant, the following table demonstrates composition of fixed and floating rate borrowing of the company and impact of floating rate borrowings on company's profitability.
The Company is exposed to the movement in price of key raw materials in domestic and international markets. The Company has in place policies to manage exposure to fluctuations in the prices of the key raw materials used in operations. The Company manages fluctuations in raw material price through hedging in the form of advance procurement when the prices are perceived to be low and also enters into advance buying contracts as strategic sourcing initiative in order to keep raw material and prices under check cost of material hedged to the extent possible.
CREDIT RISK
Credit risk refers to the risk of default on its obligation by the counterparty resulting in a financial loss. The maximum exposure to the credit risk at the reporting date is primarily from trade receivables amounting to Rs. 441.91 Crore and Rs. 392.32 Crore as of March 31,2026 and March 31,2025, respectively. Trade receivables are typically unsecured and are derived from revenue earned from customers primarily located in India. Credit risk has always been managed by the company through credit approvals, establishing credit limits and continuously monitoring the creditworthiness of customers to which the Company grants credit terms in the normal course of business. On account of adoption of Ind AS 109, the company uses expected credit loss model to assess the impairment loss or gain. The Company uses a provision matrix to compute the expected credit loss allowance for trade receivables. The provision matrix takes into account as per the Company's historical experience for customers.
Liquidity risk
Liquidity risk is the risk that the Company will not be able to meet its financial obligations as they become due. The objective of liquidity risk management is to maintain sufficient liquidity and to ensure funds are available for use as per the requirement. The company has an established liquidity risk management framework for managing its short term, medium term and long term funding and liquidity management requirements. The company's exposure to liquidity risk arises primarily from mismatches of the maturities of financial assets and liabilities. The company manages the liquidity risk by maintaining adequate funds in cash and cash equivalents. The company also has adequate credit facilities agreed with the banks to ensure that there is sufficient cash to meet all its normal operating commitments in a timely and cost effective manner.
NOTE 55 : Acquisition of controlling stake in Subsidiary
The Board of Directors at its meeting held on 24th July 2025 had approved acquisition of 72% stake in Borkar Packaging Private Limited (BPPL) by way of entering into a Share Purchase and Shareholders' Agreement (SPSHA). As per terms of SPSHA entered with Borkar Packaging Private Limited (BPPL), the Company has acquired 65.65% of Equity Shares from existing shareholders of BPPL on 28th October 2025 resulting in BPPL becoming a Subsidiary from the said date. Subsequently, the Company has increased its shareholding to 71.96% by subscribing additional Equity Shares in BPPL. The impact of Business Combination has been given in the Consolidated financials of the Company as per IND AS 103.
NOTE 57 : Impairment Review
During the year, assets (including goodwill) are tested for impairment whenever there are any internal or external indicators of impairment.The testing did not result in any impairment in the carrying amount of goodwill and other assets.
Impairment test is performed at the level of each Cash Generating Unit ('CGU') or groups of CGUs within the Company at which the assets are monitored for internal management purposes, within an operating segment. The impairment assessment is based on higher of value in use and value from sale calculations.The measurement of the cash generating units' value in use is determined based on financial plans that have been used by management for internal purposes. The planning horizon reflects the assumptions for short to- mid-term market conditions.
Key assumptions used in value-in-use calculations are:-
(i) Operating margins (Earnings before interest and taxes), (ii) Discount Rate, (iii) Growth Rates and (iv) Capital Expenditure
NOTE 58 : Information related to consolidated financials
The Company is listed on stock exchange in India, the Company has prepared consolidated financial as required under IND AS110, Sections 129 of Companies Act, 2013 and listing requirements. The consolidated financial statement is available on Company's web site for public use.
NOTE 60 : Segment information Information about primary segment
The Company has one reportable business segment i.e. Paper and Packaging and one geographical reportable segment i.e. Operations mainly within India. The performance is reviewed by the Board of Directors (Chief operating decision makers).
NOTE 61 : Previous year figures have been regrouped/ rearranged, wherever considered necessary to conform to current year's classification.
NOTE 62 : Notes 1 to 61 are annexed to and form an integral part of financial statements.
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