B. Nature and purpose of reserves

a) General Reserve: General Reserve was created in the past by way of appropriation of profits of the Company. This is a free reserve and can be utilised for any general purpose like for issue of bonus shares, payment of dividend, buy back of shares etc.

b) Retained Earnings: Retained earnings are the profits that the Company has earned till date, less any loss incurred, any transfers to general reserve, dividends or other distributions paid to shareholders.

c) Equity Instruments through Other Comprehensive Income: The fair value change of the equity instruments measured at fair value through othercomprehensive income is recognised in equity instruments through Other Comprehensive Income. Upon derecognition, the cumulative fair valuechanges on the said instruments are reclassified to the Statement of Profit and Loss.

D. Capital Management

Equity share capital and other equity are considered for the purpose of Company's capital management.

The Company manages its capital so as to safeguard its ability to continue as a going concern and to optimise returns to shareholders. The capital structure of the Company is based on management's judgment of its strategic and day-to-day needs with a focus on total equity so as to maintain investor, creditors and market confidence.

i) Submission of Quarterly Returns or Statement of Current Assets:

a) The Company has filed the monthly Statements of current assets with the banks/Financial Institutions and the same are in agreement with the books of accounts;

ii) Terms of Redemption / Repayment: a) Term Loans:

i) During the year 2025-26, Kotak Mahindra Bank Ltd (KMBL) has enhanced the Cash Credit Limit from ' 15 Crore to ' 20 Crore and LC facilities, amounting to ' 1.45 Crore has been converted into, foreign currency Term Loan within overal limit of ' 23.19 Crore. The said loan of ' 1.45 Crore is repayable in 36 months, starting from September, 2025.

ii) During the year 2021-22, the Company has availed Working Capital Term Loan of ' 1.92 Crore under Emergency Credit Line Gaurantee (ECLG) Scheme of National Credit Guarentee Trustee Company Ltd, through Kotak Mahindra Bank Ltd, in the backdrop of COVID 19 pandemic and said loan ' 1.92 Crore isrepayble in 60 months (with moratorium of 24 months) by way of monthly instalments co-mencing from February, 2022.

iii) Unsecured loans from promoters ' 13.75 lacs and certain bodies corporate ' 11.25 lacs are repayable after the repayment of all settled dues of secured creditors are made pursuant to the Rehabilitation Scheme sanctioned by its Order dated 10th June'2010 of the erstwhile BIFR. As per the said sanctioned scheme of erstwhile BIFR, no interest is payable on above loans.

iv) Amount relating to Current Matuirities has been calculated on the basis of existing repayment schedule of lenders.

v) Car Loan from banks (other than schedule banks) repayable in monthly installments from August, 2021 to October, 2030 for respective cars covered under above loan.

iii) Nature of Security: a) Term Loans:

i) The Term Loan from Kotak Mahindra Bank Ltd is secured by first and exclusive charge on all existing and future movable and immovable fixed and current assets of the company and personal gaurantee of promoter.

ii) The Company presently enjoys facilities like Working Capital limit of ' 15 Crore as part of the overall credit facilities granted by Kotak Mohindra Bank Ltd, secured by first and exclusive charge on all existing and future movable and immovable fixed and current assets of the Company

iii) Working Capital Term Loan under ECLG Scheme is secured by second charge on all existing and future movable and immovable fixed and current assets of the Company.

iv) Car Loan from banks ( other than schedule banks) are secured by the hypothecation of the cars.

iv) Loan from Bodycorporate include ' 100.86 lakhs and ' 5821.39 lakhs from MSME and other than MSME respectively relating to related party. Refer Note No. 34

ii) During the year the Trade Payables includes ' 12.95 lakhs which are the under the head of 'not due' and 'unbilled dues'

iii) Trade Payble under Micro, Small and Medium Enterprise (MSME) include ' 54.26 lakhs (Previous year ' Nil ) relating to related party. Refer Note No. 34

iv) Amount dues to suppliers are subject to confirmation of the parties.

i) Above (a) represents the impact of the financial implecations assessed by the Company towards past service cost and increase liability as per the four New Labour Codes notified by the Government of India has notified effective from 21st November, 2025 by consolidating and rationalizing 29 existing labour laws. The Company has considered such impact in increase of cost and liability of Gratuity and Leave Pay as an event of non-recurring nature as under " Exceptional Item" in the financial statements for the year 31st March, 2026. The Company continues to monitor further developments of Central / State Rules and clarifications from the Government on all the aspects partaining to labour codes and would provide appropriate accounting effect, if any, on the basis of such developments as needed.

ii) Above (b) represents profit on sale of remaining part of the property of Paper Machine Industries a Unit of the Compay, Nasik (Previously under closure) during the year 2024-25.

Note:

i) During the year 2025-26, the above Contingent Liability for Income Tax Demand made by Income Tax Authority for Assessment year 2017-18 for ' 339.07 lakhs and Assessment year 2024-25 for ' 185.20 lakhs and the Company has e-filed appeal against such demand to Joint Commissioner (Appeals), Bengaluru, vide e-iling acknowldgement No. 638096310280326 and 640614270290326 dated 28th March, 2026 and 29th March, 2026 respectively under protest.

ii) The above Contingent Liabilities for Sale Tax Demands includes demands made by Sale Tax Authorities from time to time, under Appeals.

As against above demands the Company has deposited ' 37.79 lakhs under protest.

iii) The above Contingent Liabilities for Excise Demands includes demands made by Central Excise Authorities from time to time, under Appeals.

As against above demands the Company has deposited ' 2.50 lakhs under protest.

iv) The above Contingent Liabilities for GST Demands includes demands made by Goods Service Tax Authorities from time to time, under Appeals.

As against above demands the Company has deposited ' 72.31 lakhs under protest.

v) A sum amounting to ' 2.98 lakhs has been paid as advance in respect of above contracts remaining to be executed on Capital Account and not provided for.

a) Remuneration of Chairman & Managing Director includes ' 80.49 lakhs for Leave Encashment which is partain-ing to earlier year.

b) No amount has been written back / written off during the year in respect of due to related parties.

"c) No provision for doubtful debts in respect of dues from related parties has been made."

35. Employees Benefits under Indian Accounting Standard (Ind As) -19:

As per Indian Accounting Standard (Ind As) - 19 " Employee Benefits" , the disclosure of Employee Benefits as defined in the Indian Accounting Standard (Ind As) 19 are as follows:

a) Defined Contribution Plan :

i) Employee benefits in the form of Provident Fund, Superannuation Fund, Employee State Insurance Scheme and Labour Welfare Fund are considered as defined contribution plan except that Provident Fund in respect of certain employees is contributed to a fund set up by the Company which is treated as a Defined Benefit Plan since the Company has to meet the interest shortfall.

ii) The contributions to the funds are made in accordance with the relevant statute and are recognized as an expense when employees have rendered service entitling them to the contributions. The contribution to Defined Contribution Plan, recognized as expense for the year are as under:

(' in lacs)

b) Defined Benefit Plan :

i) Post employment and other long-term employee benefits in the form of gratuity and leave encashment are considered as Defined Benefit Obligation. The present value of obligation is determined based on actuarial valuation using projected unit credit method as at the Balance Sheet date. The amount of defined benefits recognized in the Balance Sheet represent the present value of the obligation as adjusted for unrecognized past service cost and as reduced by the fair value of plan assets.

ii) Provident Fund in respect of certain employees is contributed to a fund set up by the Company which is treated as a Defined Benefit Plan since the Company has to meet the interest shortfall. There is no interest shortfall as at the year end. As advised by an independent actuary, it is not practical or feasible to actuarially value the liability considering that the rate of interest is notified by the Government . Accordingly other related disclosures in respect of Provident Fund have not been made.

iii) Any asset resulting from this calculation is limited to the discounted value of any economic benefits available in the form of refunds from the plan or reductions in future contributions to the plan. The amount recognized in the Profit and Loss Account for the year in respect of Employees Benefit Schemes based on actuarial reports is as follows :

36 Provision for taxation (Current Tax/Minimum Alternate Tax) is not considered necessary in view of tax losses

under continuation of relevant provisions of the Income tax Act, 1961.

37 The Company has not recognised Deferred Tax Assets (Net) as per Ind As -12, regarding 'Acounting for

Taxsation'estimation of future in view of consistent tax losses and existance of future profit with reasonable

certainity.

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

39 Additional Regulatory Informations

i) The title deeds of Immovable Property held during the financial year in name of the Company.

ii) During the financial year company has not revalued its Property, Plant and Equipment.

iii) None of the Loans or Advances in the nature of loans as at 31st March,2026 is granted to the promoters, directors, KMPs and the related parties (as defined under 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) There are no intangible asset is under development during the current as well previous financial year.

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

vi) During the year the Company has been sanctioned working capital limits in excess of five crore rupees in aggregate from banks or finacial institutions. The Company has filed quarterly returns for security of current assts in respect of existing working capital loan which are agreement with the books of accounts.

vii) The company has not been declared wilful defaulter by any bank or financial Institution or other lender.

x) The Company has no subsidiary, therefore clause (87) of section 2 of the Companies Act, 2013 read with Companies (Restriction on number of Layers) Rules, 2017 is not applicable on the Company.

xi) The CSR is not applicable to the Company.

xii) The Company's accounting software has audit trail functionality (edit log). This feature remained operational throughout the year, capturing a chronological record of all relevant transactions processed within the software.

41 The previous year's figures have been re-worked, regrouped, rearranged and reclassified wherever necessary and practicable . Amounts and other disclosures for the preceding year are included as an integral part of the current year financial statements and are to be read in relation to the amounts and other disclosures relating to the current year.