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 other comprehensive income is recognised in equity instruments through Other Comprehensive Income. Upon derecognition, the cumulative fair value changes 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.

The management and the Board of Directors monitor the return on capital as well as the level of dividends to shareholders. The Company may take

appropriate steps in order to maintain, or if necessary adjust, its capital structure.

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 2021-22, the Company has availed Term Loan from Kotak Mahindra Bank Ltd Rs.35 lakhs and the said loan is repayable in 27 months by way of of monthly instalments comencing from February, 2022. During the year 2023-24, the Cash Credit limit has been enhance from Rs. 5 Crore to Rs. 10 crore and LC facilities of Rs. 18.19 Crore have been sanctioned towards CAPEX. The Company has availed LC facilities of Rs.5 Crore so far. KMBL has also granted an adhoc Cash Credit facility of Rs.1.50 Crore in 2023-24, repayable after 90 days from the date of disbursement.

ii) During the year 2020-21 and 2021-22, the Company has availed Working Capital Term Loan of Rs. 8.16 Crore and Rs.1.92 Crore respectively 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 Rs.8.16 Crore is repayble in 48 months (with moratorium of 12 months) by way of monthly instalments comencing from November, 2021, and loanRs. 1.92 Crore is repayble in 60 months (with moratorium of 24 months) by way of monthly instalments comencing from February, 2022.

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iii) Unsecured loans from promoters Rs. 13.75 lacs and certain bodies corporate Rs.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 June 2014 to July,2025 for respective cars covered under above loan.

iii) Nature of Security: a) Term Loans:

i) The Term Loan from Kotak Mahindra Bank Ltd.availed during the year was 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 Rs.10 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.

The aforesaid Overdraft Current Account has been secured by first and exclusive charge on all existing and future movable and immovable fixed and current assets of the company.

ii) During the year, the Company has no cases in Trade Payables which are the under head of 'not due' and 'unbilled dues'.

iii) Trade Payble under Micro, Small and Medium Enterprise (MSME) include Rs.344.38 lakhs relating to related party. Refer Note No. 34

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

v) The Company has amounts due to suppliers under the Micro, Small and Medium Enterprises Development Act,2006 ( MSMED Act ) as at 31st March, 2024 as under:

i) Above (a) represents profit on sale of part of the property of Paper Machine Industries a Unit of the Compay, Nasik (Previously under closure) and the rest of the property remains to be sold.

ii) ii) During the year 2022-23, above (b) represents the provision for liability of Mature Debenture Rs. 151.84 lakhs and Interest Accrued thereon Rs. 59.16 lakhs respectively no longer required written back as per the the provisions of the rehabilitation scheme sanctioned by erstwhile BIFR dated 24.05.2010 in para 11.1(f) and as the debenture holders are untraceable for a considerable period of time.

i) The above Contingent Liability for Income Tax Demand made by Income Tax Authority and the Company has suit filed against such demand at

Hon'ble High Court, Kolkata, vide W.P.A No. 12504 dated 25th April, 2024.

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 Rs.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 Rs.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 Rs.11.17 lakhs under protest.

v) A sum amounting to Rs.484.08 lakhs has been paid as advance in respect of above contracts remaining to be executed on Capital Account and not provided for.

Note: Reasons for Increase/Decrease in the Ratio by more than 25% as compared to the previous year as follows:

i) Debt Service Coverage Ratio has been increased/improved due to decrease in proft and debt service cost during the year.

ii) Return on Equity Ratio has been decreased/declined due to decrease in net income and increase in shareholders equity.

iii) Net Capital Turnover Ratio has been increased/improved due to increase in net sales and working capital during the year.

iv) Net Profit Ratio has been decreased/declined due to decrease in PAT and increase in net sale during the year.

v) Return on Capital Employed Ratio has been decreased/declined due to decrease in PBIT and increase in capital employed during the year.

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

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 :

Note: Above information have been compiled on the basis of Certificates issued by the Actuaries.

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,2024 and as at 31st March,2023 are 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 not 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.

viii) The company did not have any transaction with companies struck off under Section 248 of companies Act, 2013.

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.