Terms/rights attached to equity shares

The Company has only one class of equity shares having par value of INR 10 per share. Each holder of equity shares is entitled to one vote per share. The Company will declare and pay dividends in Indian rupees.

No shares have been issued by the Company for consideration other than cash, during the period of five years immediately preceding the reporting date.

Details of terms of repayment and security provided in respect of the secured non-current borrowings:

Term loan from Axis Bank Limited is secured by way of :-Security:

1. Equitable mortgage of land & building and hypothecation of Plant & Machinery

2. Personal guarantee by Directors of the Company

3. Pledge of 1,00,000 equity shares each of Shri Himanshu Sangal and Shri Amit Sangal, director of the company Other information;

From Axis Bank Limited (for term loan of Rs. 290 Lakhs)

At the rate of Repo rate 2.65% p.a. i.e. 9.10% p.a. (previous year Repo rate 2.65% p.a. i.e. 9.15% p.a.) Repayable in 58 Monthly installments of Rs.5.00 Lakh each starting from letter issued by the bank to the borrower immediately upon first disbursement.

From Axis Bank Limited (for term loan of Rs. 192 Lakhs)

At the rate of Repo rate 2.65% p.a. i.e. 9.10% p.a. (Previous year Repo rate 2.65% p.a. i.e. 9.15% p.a.) Repayable in 60 Monthly installments of Rs.3.20 Lakhs each starting from 6 months above from letter issued by the bank to the borrower immediately upon first disbursement including moratorium of 6 months.

From Axis Bank Limited (for term loan of Rs. 150 Lakhs)

At the rate of Repo rate 2.65% p.a. i.e. 9.10% p.a. (Previous year Repo rate 2.65% p.a. i.e. 9.15% p.a.) Repayable in 35 Monthly installments of Rs.4.16 Lakhs each and last installment of Rs. 4.40 Lakhs starting from letter issued by the bank to the borrower immediately upon first disbursement including moratorium of 15 months.

From Axis Bank Limited (for term loan of Rs. 300 Lakhs)

At the rate of Repo rate 2.65% p.a. i.e. 9.10% p.a. (Previous year Repo rate 2.65% p.a. i.e 9.15% p.a.) Repayable in 63 Monthly installments of Rs.5.00 Lakhs each starting from letter issued by the bank to the borrower immediately upon first disbursement including moratorium of 3 months.

Vehicle Loan Security:

Vehicle Loan is secured by hypothecation of respective vehicles and guaranteed by Directors of the Company.

From HDFC Bank Limited (Original loan Amount 50 lakhs)

At the Present effective rate is 7.90 % p.a. (Previous year 7.90% p.a.) Repayable in 48 monthly EMI of Rs. 1.22 Lakhs each starting from 07.10.2022.

From Mercedes Benz Financial Services India Private Limited (Original loan Amount 80 lakhs)

At the Present effective rate is 8.95 % p.a. Repayable in 60 monthly EMI of Rs. 1.66 Lakhs each starting from

11.04.2024.

From Punjab National Bank (Original loan Amount 50 lakhs)

At the Present effective rate is 8.80 % p.a. Repayable in 36 monthly EMI of Rs. 1.58 Lakhs each starting from

31.12.2024.

*The above loan is secured by primarily through a hypothecation charge over the entire current assets of the Company including inventory, stock in trade, store and spares, consumables, book debts, etc. both present and future and entire movable fixed assets of the company both present and future.

Management expects that the entire transaction price allotted to the unsatisfied contract as at the end of the reporting period will be recognised as revenue during the next financial year.

32 Employee benefit obligations a) Defined contribution plan

Retirement benefit in the form of provident fund is a defined contribution scheme. The contributions to the provident fund are charged to the statement of profit and loss for the year when the contributions are due. The Company has no obligation, other than the contribution payable to the provident fund.

b) Defined benefit plan

Gratuity is payable to eligible employees as per the Company's policy and The Payment of Gratuity Act, 1972. The present value of obligation is determined based on actuarial valuation using the Projected Unit Credit (PUC) method, which recognizes each period of service as giving rise to additional unit of employee benefit entitlement and measures each unit separately to build up the final obligations.

Provision for leave benefits is made by the Company on the basis of actuarial valuation using the Projected Unit Credit (PUC) method.

Liability with respect to the gratuity is determined based on an actuarial valuation done by an independent actuary at the year end and is charged to Statement of Profit and Loss.

Actuarial gains and losses comprise experience adjustments and the effects of changes in actuarial assumptions and are recognized immediately in the Other Comprehensive income as income or expense

The sensitivity analysis above have been determined based on a method that extrapolates the impact on defined benefit obligation as a result of resonable changes in key assumptions occurring at the end of the reporting period

The sensitivity analysis presented above may not be representative of the actual change in the projected benefit obligation as it is unlikely that the change in assumptions would occur in isolation of one another as some of the assumptions may be correlated. Furthermore, in presenting the above sensitivity analysis, the present value of the projected benefit obligation has been calculated using the projected unit credit method at the end of the reporting period, which is the same method as applied in calculating the projected benefit obligation as recognised in the balance sheet.

There was no change in the methods and assumptions used in preparing the sensitivity analysis from prior years.

Risk analysis

The Company is exposed to a number of risks in the defined benefit plans. Most significant risks pertaining to defined benefit plans and management estimation of the impact of these risks are as follows Inflation risk

Currently the Company has not funded the defined benefit plans. Therefore, the Company, will have to bear the entire increases in liabilty on account of inflation Longevity risk/life expectancy

The present value of the defined benefit plan liability is calclulated by reference to the best estimate of the mortality of plan participants both during and at the end of the employment. An increase in the life expectancy of the plan participants will increase the plan liability.

Salary growth risk

The present value of the defined benefit plan liability is calculated by reference to the future salaries of plan participants. An increases in the salary of the plan participant will increase the plan liability

Financial Instruments-Fair value hierarchy

The comapany categorizes financial assets and financial liabilities measured at fair value into one of three level depending on the ability to observe inputs employed in their measurement which are described as follows:

i) Level 1 Inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities

ii) Level 2 Inputs are inputs that are observable, either directly or indirectly, other than quoted prices included within level 1 for the financial asset or financial liabilities.

iii) Level 3 Inputs are unobservable input for the assets or liability reflecting the significant modifications to observable related market data or Company's assumptions about pricing by market participants.

i) Fair valuation of current financial liabilities is considered as approximate to respective carrying amount due to the short term maturities of their instrument.

ii) Trade receivables, cash and cash equivalents, bank balances other than cash and cash equivalents, other financial assets, trade payables and other financial liabilities have fair value that approximate to their carrying amounts due to their short-term nature.

iii) There are no transfer between Level 1, Level 2, and Level 3 during the year ended 31 March 2025 and 31 March 2024.

34 Financial Risk Management objectives and Financial risk factors

The company's activities expose it to a variety of financial risks; market risk (including currency risks, interest rate risks and price risk), credit risk and liquidity risk. This note presents information about the company's exposure to each of the said risks, the company's objectives, policies and processes for measuring risks and the company's management of capital. Further quantitative disclosures are included throughout these financial statements.

The board of director has overall responsibility for the establishment and oversight of the company's risk management framework. The company's risk management policies are established to identify and analyse the risks faced by the company to set appropriate measures and controls and to monitor risks and adherence to limits. Risks management policies and systems are reviewed regularly to reflect changes in market conditions and in the company's activities.

The company's exposure to the various types of risks associated to its activity and financial instruments is detailed below:

Credit risk

Credit risk is the risk that counterparty will not meet its obligation under a financial instrument or customer contract, leading to a financial loss. Credit risk encompasses of both, the direct risk of default and the risk of deterioration of creditworthiness as well as concentration of risks. Credit risk is controlled by analyzing credit limits and creditworthiness of a customer on a continuous basis to whom the credit has been granted after obtaining necessary approvals for credit. Financial instrument that are subject to concentration of credit risk principally consist of trade receivables, cash and cash equivalents, bank deposits and other financial assets. None of the financial instrument of the Company result in material concentration of credit risk.

Liquidity risk

Liquidity risk is the risk that the company will encounter in meeting the obligations associated with its financial liabilities that are settled by delivering cash or another financial asset. The approach of the company to manage liquidity is to ensure, as far as possible, that these will have sufficient liquidity to meet their respective liabilities when they are due, under both normal and stressed conditions, without incurring unacceptable losses or risk damage to their reputation.

35 Market Risk

Market risk is the risk that the Company's assets and liabilities will be exposed to due to a change in market prices such as foreign exchange rates and interest rates that determine the valuation of these financial instruments. Financial instruments affected by market risk include receivables, payables, and loans and borrowings.

(a) Foreign currency risk exposure:

The Company operates internationally and is exposed to foreign exchange risk arising from foreign currency transactions, primarily with respect to the USD. Foreign exchange risk arises from future commercial transactions and recognised assets and liabilities denominated in a currency that is not the company's functional currency (INR). The risk is measured through a forecast of highly probable foreign currency cash flows. The objective of the hedges is to minimise the volatility of the INR cash flows of highly

41 Segment Reporting

In line with IND AS 108 - Operating Segments and on the basis of review of operations being done by the senior management, the operations of the company fall under manufacturing of paper products, which is considered to be the only reportable segment by the management.

42 Capital management (a) Risk management

The Company's objectives when managing capital are to safeguard their ability to continue as a goning concern, so that they can continue to provide return for shareholders and benefits for other stakeholders and maintain an optimal capital structure to reduce the cost of capital.

Consistent with others in the industry, the company monitors capital on the basis of the followings gearing ratio:

Net debt (total borrowings net of cash and cash equivalents) divided by

Total 'equity' (as shown in the balance sheet, including non-controlling interests)

The company's gearing ratio were as follows:

In order to achieve this overall objective, the company's capital management amongst other things, aims to ensure that it meets financial covenants attached to the interest bearing loans and borrowing that define capital structure requirement. Breaches in meeting the fianancial covenants would permit the bank to immediately call loans and borrowings.

43 Other Statutory Information

(i) The title deeds of all the immovable properties disclosed in the financial statements included in property, plant and equipment are held in the name of the Company as at the balance sheet date.

(ii) The Company has not revalued any of its Property, Plant and Equipment during the current reporting period and also for previous year's reporting period.

(iii) The Company has not granted any loans or advances to promoters, directors, KMPs and the related parties (as defined under the 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.

(iv) The company does not have any capital work in progress during the year.

(v) The Company does not have any intangible assets under development during the current and previous year reporting period.

(vi) The Company does not hold any Benami Property and hence there were no proceedings initiated or pending against the Company for holding any benami property under the Benami Property Transaction Act, 1988 and the Rules made there under.

(vii) The company has borrowings from banks or financial institutions on the basis of security of current assets and quarterly returns or statements of current assets filed by the Company with banks or financial institutions are in agreement with the books of accounts.

(viii) The company is not declared willful defaulter by any bank or financial institution or other lender during the year.

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

(xi) The Company does not have investment in any downstream companies for which it has to comply with the number of layers prescribed under Clause (87) of Section 2 of the Companies Act, 2013 read with Companies (Restriction on number of layers) Rules, 2017.

(xii) The Company has used the borrowings from banks and financial institutions for the purpose for which it was obtained.

(xiii) The Company has 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.

(xiv) The Company has 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.

(xv) The Company does not have any such transactons which was 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.

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

(xvii) The Company is not required to comply with the provisions of Section 135 of the Companies Act, 2013.

45 Other points

(a) In the opinion of the Board of Directors, trades receivables, other current financial assets and other current assets have value on relisation in the ordinary course of the company's business which is at least equal to the amount at which they are stated in the balance sheet.

(b) Balances of trade receivables, trade payable and advances as at 31st March, 2025 are subject to confirmation.

(c) Audit trail feature, as mandated by the Companies (Accounts) Rules, 2014 (as amended) with effect from April 01, 2023, has been enabled in the accounting software used by the Company,and the same has been operated throughout the year for all transactions recorded in the software and the audit trail feature has not been tampered with and the audit trail has been preserved by the company

_as per the statutory requirement for record retention_

(d) Previous year figures have been re-arranged and re-grouped wherever necessary as to make them compareable. Figures have been rounded off to nearest lakhs as per the provisions of schedule III of Companies Act, 2013.