3.01 Refer to Note No 18.01 for information on Plant and equipment pledged as security by the company.

3.02 Addition during the year includes borrowing cost ? Nil (as at 31³¹ March, 2023 ? Nil) Capitalised during the year as per IND AS.

3.03 As per the requirement of Ind AS 16 - Property, Plant and Equipments the residual value and the useful life of an asset shall be reviewed at least at each financial year-end. During the current financial year, the estimated useful lives of Property, plant and equipment have been reviewed and revised wherever expectations differ from previous estimate, which is differ from the useful life as indicated in Part C of Schedule II of Companies Act, 2013.

3.04 Plant and Equipment addition include an amount of ?Nil (as at 31^st March. 2023? Nil) capitalised by transfer from capital work in progress which were acquired out of Government Grant

(BIRAC).

3.05 The title deeds of all the immovable property held by the Company as disclosed in the financial statement are held in the name of the Company.

4.01. For details of classification of financial asset and fair value hierarchy Refer Note No 37

4.02. In view of the business plan of the subsidiary company M/s Mayabandar Doors Limited, which is expected to bring in positive cash Hows in the near future and the estimated realisable value of the assets at the unit based on the independent valuer, the management is of the opinion that no diminution in the value of investment in Subsidiary company is anticipated at this stage.

4.03. The company had entered into an agreement with M/s Era Intermerge SDN BHD in an earlier year for setting up a Joint Venture entity (ERA &WIP Timber JV SDN BHD) in Malaysia as per which the company would have 45% share in ownership and voting in the JV. Pending completion of certain formalities in Malaysia, the joint Venture M/s ERA intermerge SDN BHD has been unable to make their agreed share of investment, as a result of which the shareholding of the company in the entity as at, 31'¹ March 2024 is 65.87%. (as at 31" March, 2023 is 65.87%). Accordingly the entity', ERA & WIP Timber JV SDN BI ID has been treated as a subsidiary in the books of account of the company and disclosure under IND-AS 28 are not applicable at this stage.

8.01 Method of valuation of inventories - See Note 2 (k) of Material Accounting Policies.

8.02 During the year, write down made towards slow moving and non moving inventories for ’ 147.27 Lakhs (For the FY 2022-2023 ? 51.40 lakhs). Inventory value shown above are net of write down amount. These were recognised as an expense during the year through the changes in value of inventories of work in progress, stock-in-trade and finished goods in statement of profit or loss.

8.03 Working Capital borrowings arc secured by hypothecation of inventories of the Company (See Note 21.01)

16.01 Terms/ Rights Attached to Equity Shares

The Company has only one class of shares referred to as equity shares with a face value of? 10/- each. Each holder of an equity share is entitled to one vote per share. The company declares and pays dividend in Indian Rupees. In the event of liquidation of the company, the holders of equity shares will be entitled to receive the remaining assets of the company after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders.

17.01 Description of nature and purpose of each reserve

i) Capital Reserve - Capital reserve was created during the earlier years.

li) Capital Redemption Reserve - This reserve was created at the time of Redemption of Preference Shares. During the FY 2017-18 ? 190.00 lakhs was created and ? 1130.00 lakhs was created during earlier years.

iii) Securities Premium Reserve - Securities premium reserve is used to record the premium on issue of shares. The reserve is utilised in accordance with the provisions of the Act.

iv) Export profit Reserve - This reserve was created out of profit during the earlier years.

v) General Reserve - General reserve is created from time to time by way of transfer of profit from retained earnings for appropriation purpose. General reserve is created by transfer from one component of equity to another and is not an item of Other Comprehensive Income.

vi) Retained Earnings - Retained Earnings are the profits, that the company has earned till date, less any tranfer to General Reserve, dividend or other distributions paid to shareholders.

vii) Equity Instrument through Other Comprehensive Income (OCI) - This represents the cumulative gains and losses arising on the revaluation of equity instruments measured at fair value through other Comprehensive income, under an irrevocable option, net of amounts reclassified to retained earnings when such assets are disposed off.

viii) Remeasurement of Net Defined Benefit Plan through Other Comprehensive Income (OCI): This represents re-measurement gains and losses on post employment defined benefit plans recognised in other comprehensive income in accordance with Ind AS 19, “Employee Benefits”

17.02 Dividend Distributed and Proposed

i) The Board of Directors at its meeting held on 29* May 2024 has proposed equity dividend of ? 1.20/- (FY 2022-23 - ? 1.00/-) per share of? 10/- each for the Financial Year ended 31"' March. 2024.

The dividend proposed by Directors are subject to approval of shareholders at the annual general meeting. The proposed dividend of? 101.85 Lakhs (FY 22-23 ? 84.87 Lakhs) have not been recognised as liability.

21.01 Working Capital loans availed from banks are repayable on demand and are secured by hypothecation of Raw Materials. Work In Progress, Finished Goods, Receivables and other current assets of the Company. The above loans are also secured by pari passu second charge over the entire-fixed assets of the company and the personal guarantee of the Managing Director.

24.01 Government grant pertains to the grant in aid of ? 36.00 lakhs sanctioned by Biotechnology Industry Research Assistance Council (BIRAC- A government of India Enterprises) for the research proposal entitled "Utilization of Paper Mill Sludge for the manufacturing of wood fiber based soft board and hardboards". During the year, as per the accounting policy, the company has recognized an amount of? 1.67 lakh (for the FY 2022-23 ? 1.67 lakhs) as income under the head “ Other income"-(Notc. 27).

(G) SENSITIVITY ANALISIS ON GRATUITY

Significant actuarial assumptions lor the determination of the defined benefit obligation are discount race, expected salary increase and employee turnover. The sensitivity analysis below have been determined based on reasonably possible changes of the assumptions occurring at the end of the reporting period and may not be representative of the actual change, while holding all other assumptions constant.

(E) SENSITIVITY ANALISIS ON LONG TERM EMPLOYEE BENEFITS -COMPENSATED ABSENCES

Significant actuarial assumptions for the determination of the compensated absence obligation arc discount rate, expected salary increase and employee turnover. The sensitivity analysis below have been determined based on reasonably possible changes of the assumptions occurring at the end of the reporting period and may not be representative of the actual change, while holding all other assumptions constant.

37. Financial Instruments :

37.01 Capital Management :

The Company manages its capital to ensure that the Company will he able to continue as a going concern and maximising the return to stakeholders through efficient allocation of capital towards expansion of business, optimisation of working capital requirements and deployment of surplus funds into various investment options. The funding requirement is met through equity, internal accruals, long term borrowings and short term borrowings.

The Company monitors the capital structure on the basis of net debt to equity ratio and maturity profile of the overall debt portfolio of the Company. Net debt includes interest bearing borrowings less cash and cash equivalents and other bank balances.

Following Methods / Assumptions used to estimate Fair value.

1) The carrying amount of Financial assets and financial liabilities measured at amortised cost m the financial statements are a reasonable approximation of their face values since the Company does not anticipate that the carrying cost would be significantly different from the values that would eventualy be received or settled.

2) All foreign currency denominated assets and liabilities are translated using exchange rate at reporting date.

37.03. Fair value Measurement hierarchy:

The following table provides the fair value measurement hierarchy of the Company’s financial assets

and liabilities, measured at fair value on the balance sheet date

There have been no transfers between Level I and Level 3 during the year. Also refer Note 37.02 37.04 Financial risk management objectives and policies :

The Company’s business activities are exposed to a variety of financial risks, namely liquidity risk, market risks foreign currency risk and credit risk. The Company’s senior management has the overall responsibility for establishing and governing the Company’s risk management framework. Company's exposure to each of the above risks, the Company’s objectives, policies and processes for measuring and managing risk are as follows -

a) Liquidity risk :

Liquidity risk represents the inability of the Company to meet its financial obligations within stipulated time. The Company manages liquidity risk by maintaining adequate reserves and banking facilities, by continuously monitoring forecast and actual cash flows, and by matching the maturity profiles of financial assets and liabilities.

j) Market risk

Market risk is the risk of any loss in future earnings, in realisable fair values or in fimire cash flows that may result from a change in the price of a financial instrument. The value of a financial instrument may change as a result of changes in foreign currency exchange rates, interest rates and equity price fluctuations, liquidity and other market changes. Future specific market movements cannot be normally predicted with reasonable accuracy.

1) Foreign currency exchange rate risk

The Company undertakes transactions denominated in foreign currencies; consequently, exposures to exchange rate fluctuations arise. The Company regularly evaluates exchange rate exposure arising from foreign currency transactions. The Company follows the established risk management policies and standard operating procedures.

2) Interest rate risk :

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in prevailing market interest rates. The Company’s exposure to the risk due to changes in interest rates relates primarily to the Company’s long term borrowings and shortterm borrowings with floating interest rates. The Company constantly monitors its financing strategics to achieve an optimal financing cost.

3) Equity price risk :

The Company is exposed to equity price risk arising from Equity Investments (other than Subsidiaries, which are carried at cost). The fair value of equity investments classified through other comprehensive income as at March 31.2024 & March 31. 2023 was ? 76.65 lakhs and ? 84.73 lakhs respectively. Sensitivity Analysis :

I he Sensitivity analysis has been determined based on the exposure to equity price risk at the end of the reporting period. A 10% change in equity prices of such securities held as at March 31, 2024 & March 31, 2023. would result in an impact of ? 7.67 lakhs and l 8.47 lakhs respectively on equity-before considering tax impact.

c) Credit risk :

Credit risk refers to the risk that a counter party will default on its contractual obligations resulting in financial loss to the Company. The company is exposed to credit risk from its operating activities predominantly trade receivables,foreign exchange transactions, loans and other financial assets. For these financial instruments, company generally doesn't have collateral.

a) Trade Receivables

Customer and vendor credit risk is managed by business through the Company’s established policy, procedure and control relating to credit risk management. Outstanding customer receivables are regularly monitored. An impairment analysis is performed for all major customers at each reporting date on an individual basis. The impairment calculations are based on historical data. Trade Receivables generally having a credit period of 30 to 90 days.There is no material expected credit loss based on the past experience. I lowever, the Company assesses the impairment of trade receivables on case to case basis and has accordingly created loss allowance.

b) Other financial assets

With regard to all the financial assets with contractual cashflows other than trade receivable, management believes these are quality assets with negligible credit risk. I lowever, the Company assesses the impairment loss on loans, investments and other financial assets on case to case basis and has accordingly created loss allowance.

39 Segment Information

The Company is engaged in the business of manufacture and sale of wood-based products, which form broadly part of one product group which represents one operating segment, as the Chief Operating Decision Maker (COI)M), reviews business performance at an overall company level and hence disclosure requirements under hid AS 108 on Operating Segment is not applicable.

45 Corporate Social Responsibility

/\s per Section 135 of the Companies Act. 2013, a Company, meeting the applicability threshold, needs to spend at least 2% of its average net profit for the immediately preceeding three financial years on corporate social responsibility (CSR) Activities.which for the financial year ended 31* March 2024 amounts to ? 0.24 lakhs (As on 31-03-2023 - ? Nill). A CSR Committee has been formed by the Company as per the Act.

d) There are no related party transactions in relation to Corporate Social Responsibility in the current and previous year

e) There is no provision in the current and previous year pertaining to Corprate Social Responsibility

f) Details of CSR expenditure under Section 135(5) of the Companies Act. 2013 in respect of other than onvoinv projects

47 No proceedings has been initiated or pending against the Company or holding any benami property under Benami Transactions (Prohibition) Act 1988 (43 of 1988) and the rules made thereunder.

48 The Company has not been declared as a wilful defaulter by any bank or financial institution or other lender during the period.

49 Events after the Balance sheet date

The Board of Directors have recommended a final dividend of? 1.20/- per share to be paid on equity shares of ? 10/- each. This equity dividend is subject to approval by shareholders at the Annual General Meeting and has not been included as a liability in these financial statements. The proposed equity dividend is payable to all shareholders on the Register of Members. Dividends will be taxed in the hands of receipient, hence there will be no liability in the hands of Company.

50 Disclosure pursuant to Securities (Listing Obligations and Disclosure Requirements) Regulations, 2015 and Section 186 of the Companies Act, 2013

The details of loans, guarantees and investments under Section 186 of the Companies Act read with the Companies (Meeting of Board and itspowcrs)ruIes 2014 are as follows;-

i) Details of investments are given in Note No 4

ii) Details of loans are given in Note No 5(a)

iii) Details of guarantees given are in Note No. 40.01

51 The Company does not have any surrendered or undisclosed income during the year in the tax asscssernnet under Income Tax Act 1961.

52 The company has an internal control system in place, including in relation to internal financial controls with reference to these Standalone Financial Statements, which is commensurate with the nature and size of its operations. These internal controls are reviewed / tested by the management / internal auditors on an ongoing basis and there arc no material weaknesses / deficiencies. Further strenghening of the internal control systems / improvements are being assessed / carried out by the management on a continuing basis.

53 The Company has complied with the number of layers prescribed under section 2(87) of The Companies Act 2013 read with Companies (Restriction on number of layers) Rules 2017.

54 Loans or advances to specified persons

No loans or advances in the nature of loans are granted to promoters, directors. Key Management Persons and related parties (as defined under the Companies Act) either severally or jointly with any other persons that are repayable on demand or without specyfying any terms or period of repayment

55 Relationship with Struck off Companies

As per the information available with the Company, the Company has no transaction with Company Struck of under section 248 of the The Companies Act 2013 or section 560 of The Companies Act 1956.

56 There has no charges or satisfication yet to be registered with ROC beyond the statutory period.

57 The Company has not advanced or loaned or invested funds (either borrowed fund or share

premium or any other sources or kind of funds) to any other person(s) or entity (ies), including foreign entities (intermediaries) with the understanding that the intermediary shall 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 Provide any guarantee, security or the like or to on behalf of the ultimate beneficiaries.

58 The company has not received any fund from any pcrson(s) or entity(ies) including foreign entities (Funding Party) with the understanding (whether recorded in writing or otherwise) that the company shall 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 provide any gurantee, security or the like to or on behalf of the Ultimate Beneficiaries.

59. Audit Trail

As per the Ministry of Corporate Affairs (MCA) notification, proviso to Rule 3(1) of the Companies (Accounts) Rules, 2014.for the financial year commencing April 1, 2023, every company which uses accounting software for maintaining its books of account, shall use only such accounting software which has a feature of recording audit trail of each and every transaction, creating an edit log of each change made in the books of account along with the date when such changes were made and ensuring that the audit trail cannot be disabled.

The company has used accounting software for maintaining its books of account, which has a feature of recording audit trail (edit log) facility, except in respect of maintenance of payroll records wherein the accounting software did not have the audit trail feature, enabled throughout the year. Further, the audit trail facility has operated throughout the year for all relevant transaction in the software.

60 The borrowings obtained by the Company from banks and financial institutions have been applied for the purpose for which such loans were taken.

61 Leases:

The lease expenses for cancellable operating leases during the year ended 31^w March 2024 is ? 25.57 lakhs (3P‘ March 2023: \ 20.24 lakhs). The Company’s significant leasing arrangements in respect of operating lease, which includes cancellable leases generally ranging upto 11 months and are usually renewable by mutual consent on mutually agreeable terms. The aggregate lease rentals payable are charged as rent under Note No 32 to the financial statements.

62 The Financial Statements for the year ended 31“ March 2024 were approved by the Board of Directors on 29 May 2024.

63 Figures have been rounded off to the nearest Lakhs, except when otherwise indicated. Previous year figures have been regrouped / reclassified wherever necessary to correspond with current year classification / disclosure.

The accompanying notes form an intergra! part of these Standalone Financial Statements (1 to 63)