Management obtained balance confirmation from debtors. However, due to the type of industry the effort was not fully successful. Based on the past experience and on the management certification the trade receivables are taken to be good except the ones where management themselves classified as sginificant credit risk in the ageing schedule below.

a) Terms/Rights attached to equity shares :

The company has only one class of equity shares having a par value of Rs.5 per share. Each equity shareholder is entitled to one vote per share.

1. Term Loans from Axis Bank Limited:

Term Loan -1

Company has availed fresh loans from Axis Bank Limited during 2019-20 and the proceeds of the loan is utilised in settling the existing term loans availed from Kotak Mahindra Bank to the tune of Rs.4,11,58,111/-.

Amount outstanding as on 31.3.2023 is Rs.93,30,751/- Including Rs.66,39,600/- current maturities Classified undercurrent financial liabilities and the loan is repayble in 60 monthly instalments from the period of availing the loan.

The rate of interest is 9.8% p.a

Security: The above term loans are secured by wayof Hypothecation of entire movable fixed assets of the company otherthan those financed by other banks/FI.

Collateral Security: Residential Land and Building situated in Coimbatore standing in the name of Late Mr. Velu And Land to the extent of 30acres and factory building constructed in pollachi standing in the name of Shree Karthik Papers Ltd.

Term Loan -2

ECLGS loan is obtained from Axis bank to manage the liquidity mismatch arising out of pandemic situation. The loan amount was Rs. 1,10,00,000/- and was sanctioned on 29.10.2020 in parts. Rs.92,00,000/- received in FY 2020-21. Balance Rs.18,00,000/- received during 2021-22. The amount is repayable in 48 instalments . Rate of interest is 9.25%.

Amount outstanding as on 31.3.2023 is Rs.58,05,548/- Including Rs.36,66,672 /- current maturities Classified under current financial liabilitie

2. Vehicle loan from HDFC Bank:

Said loan is repayable in 39 monthly instalments of Rs.67,702 from the date of sanction. At present 1 monthly instalment is paid.

Rate of intrest on the loan is 8.5% P.a.

1) Working capital loan from Bank is secured by way of :

1) First Charge on current assets by way of hypothecation of present and future current assets including stock,book debts and receivables. The loan is repayable on demand.

ii) The above working capital facility is collaterally secured by property of the Director.

iii) The Rate of Interest is in the range of 9.55% to 10.35% p.a

2) Loan from director is interest free and the loan is repayable on demand.

1. Company undertook the process of seeking information from the suppliers about their status of registration under MSME Act. NO confirmation has come forth till the date of the balance sheet and hence company is unable to identify such suppliers.

2. In the absense of information the amount payable to such suppliers is taken to be NIL.

3. Interest payable if any will be provided for as and when the liability arises.

B Defined benefit plans:

Gratuity liability is provided in accordance with the provisions of the Payment of Gratuity Act, 1972 based on actuarial valuation. The plan provides a lump sum gratuity payment to eligible employee at retirement or termination of their employment. The amounts are based on the respective employee's last drawn salary and the years of employment with the Company. The most recent actuarial valuation of the defined benefit obligation was carried out at the balance sheet date. The present value of the defined benefit obligations and the related current service cost and past service cost were measured using the Projected Unit Credit Method.

These plans typically expose the Company to actuarial risks such as: interest rate risk, salary risk and longevity risk.

Interest risk: A decrease in the bond interest rate will increase the plan liability; however, this will be partially offset by an increase in the return on the plan's debt investments.

Salary risk : The present value of the defined benefit plan liability is calculated by reference to the future salaries of plan participants. As such, an increase in the salary of the plan participants will increase the plan's liability.

Longevity risk: The present value of defined benefit plan liability is calculated by reference to the best estimate of the mortality of plan participants both during and after their employment. An increase in the life expectancy of the plan participants will increase the plan's liability.

Sensitivity Analysis

Below is the sensitivity analysis determined for significant actuarial assumptions for the determination of defined benefit obligations and based on reasonably possible changes of the respective assumptions occurring at the end of the reporting period while holding all other assumptions constant.

32. Contingent Liability:

The Company creates a provision when there is present obligation as a result of past event that probably requires an outflow of resources/financial asset and a reliable estimate can be made of the amount of the obligation. The disclosure of contingent liability is made when there is a possible obligation or a present obligation that may, but probably will not, require an outflow of resources. Where there is a possible obligation or a present obligation in respect of which the likelihood of outflow of resources is remote, no provision or disclosure is made. Contingent assets are neither recognized nor disclosed in the financial statements.

33. Segment Information:

- The company is in the business of manufacturing of paper which is the only reportable operating segment. Hence, separate disclosure requirements of Ind AS -108 " Segment Reporting" are not applicable.

34. The Company is not covered by ESI Regulation.

35. Additional information

a) Expenditure in foreign currency - Nil

b) Earnings in foreign currency - Nil

36. Fair value measurements

i. Financial instruments by category

ii. Fair Value Hierarchy

Assets and Liabilities that are disclosed at Amortised Cost for which Fair values are disclosed are classified as Level 3.

If one or more of the significant inputs is not based on observable market data, the respective assets and liabilities are considered under Level 3. ii. Fair Value Hierarchy

The Company has classified its financial instruments into three levels in order to provide an indication about the reliability of the inputs used in determining fair values.

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

(ii) 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).

(iii) Level 3: inputs for the asset or liability that are not based on observable market data (unobservable inputs)

The carrying amounts of trade receivables, cash and cash equivalents, other financial assets, current borrowings,trade payables and other current financial liabilities are a reasonable approximation of their fair values. Accordingly, the fair values of such financial assets and financial liabilities have not been disclosed seperately.

iii. Valuation technique used to determine fair value

The fair value of the financial assets and liabilities are at the amount that would be received to sell an asset and paid to transfer a liability in an orderly transaction between market participants at the measurement date.

The carrying amounts of trade receivables, cash and cash equivalents, other financial assets, current borrowings,trade payables and other current financial liabilities are a reasonable approximation of their fair values.

The estimated fair value amounts as at March 31, 2024 have been measured as at that date. As such, the fair values of these financial instruments subsequent to reporting date may be different than the amounts reported at each year-end.

There were no transfers between Level 1, Level 2 and Level 3 during the year.

37. Financial Risk Management

The Company's activities expose it to credit risk, liquidity risk and market risk - interest rate risk. The Board of Directors have overall responsibility for the establishment and oversight of the Company's risk management framework. This note explains the sources of risk which the entity is exposed to and how the entity manages the risk and the related impact in the financial statements.

a. Credit risk

Credit risk is the risk that counterparty will not meet its obligations 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 risks.

The company's credit risk generally arises from Cash and cash equivalents, trade receivables, and other financial assets.

Credit risk management

The Company assesses and manages credit risk of financial assets based on following categories arrived on the basis of assumptions, inputs and factors specific to the class of financial assets.

A: Low credit risk

B: Moderate credit risk

C: High credit risk

* Based on the past experience, there have not been any write off of trade receivables and hence no allowance is made for expected credit loss on trade receivables.

Based on business environment in which the Company operates, a default on a financial asset is considered when the counterparty fails to make payments within the agreed time period as per contract. Loss rates reflecting defaults are based on actual credit loss experience and considering differences between current and historical economic conditions. Assets are written off when there is no reasonable expectation of recovery. The Company continues to engage with parties whose balances are written off and attempts to enforce repayment. Recoveries made are recognized in statement of profit and loss.

b. Liquidity risk

Prudent liquidity risk management implies maintaining sufficient cash and marketable securities and the availability of funding through an adequate amount of committed credit facilities to meet obligations when due and to close out market positions. Due to the dynamic nature of the business, the Company maintains flexibility in funding by maintaining availability under committed credit lines. Management monitors rolling forecasts of the company's liquidity position and cash and cash equivalents on the basis of expected cash flows. The Company takes into account the liquidity of the market in which the entity operates. In addition, the company's liquidity management policy involves projecting cash flows and considering the level of liquid assets necessary to meet these, monitoring balance sheet liquidity ratios against internal and external regulatory requirements and maintaining debt financing plans.

Market Risk

Market risk is the risk that changes in market prices such as foreign exchange rates, interest rates etc. could affect the Company's income or the value of its holdings of financial instruments including cash flow. The objective of market risk management is to manage and control market risk exposures within acceptable parameters, while maximising the return.

Interest rate Risks

The Company uses a mix of cash and borrowings to manage the liquidity & fund requirements of its day-today operations. 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. The borrowings are fixed rate borrowings and are carried at amortized cost. They are therefore not subject to interest rate risk as defined in Ind AS 107, 'Financial Instruments - Disclosures', since neither the carrying amount nor the future cash flows will fluctuate because of a change in market interest rates.

Interest rate risk exposure

The Company does not have any variable rate borrowing which is subject to interest rate risk.

38. Capital Management

The Company's objectives when managing capital is to safeguard continuity, maintain a strong credit rating and healthy capital ratios in order to support its business and provide adequate return to shareholders through continuing growth. The Company's overall strategy remains unchanged from previous year.

The funding requirements are met through a mixture of equity, internal fund generation and other noncurrent borrowings. The Company's policy is to use current and non-current borrowings to meet anticipated funding requirements.

The Company monitors capital on the basis of the gearing ratio which is net debt divided by total capital (equity plus net debt).

Net debt are non-current and current debts as reduced by cash and cash equivalents, other bank balances and current investments. Equity comprises all components including other comprehensive income.

41. Material Changes & Commitments:

Based on the company's experience and the current trend, company as on the date of approval of the financial statements has used internal and external sources to assess and form an opinion and judgement on the future performance of the company. Based on current estimates the company expects the carrying amounts of these assets to be realised as stated in the financial statements.

42. Other Regulatory requirement details asper Schedule III requirements

a. The company does not have immovable property, that are not held in the name of the company

b. Company has not granted any loan or advance to the Directors, KMP’s during the year

c. There are no proceedings initiated or are pending against the company for holding any benami property under Benami Transactions (Prohibition) Act, 1988

d. The Company is not declared as wilful defaulter by any bank or financial institution or other lenders

e. The company did not have any transactions with companies struck off under sec 248 of Companies Act,2013 or Sec 560 of companies Act,1956 considering the information available with the company.

f. Clause 87 of Section 2 of the Companies Act read with Companies(Restriction on number of layers) Rules,2017 is not applicable to the company.

h. There are no scheme of arrangements approved by the Competent Authority in terms of Sections 230 to 237 of the Companies Act,2013 during the year.

i. The Company has not advanced or loaned or invested funds to any other persons or entities , including foreign entities with the understanding (whether recorded in writing or otherwise) that the intermediary shall

(i) directly or indirectlylend 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

The Company has also not received any fund from any person(s) or enitity(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.

j. The company do not have any transaction which are not recorded in books of accounts that has been surrendered or disclosed as income in the tax assessments under the Income Tax Act, 1961 during any of the years.

k. During the year the company has not invested any money in Crypto Currency or Virtual Money.

Hence disclosure relating this is not applicable.

43. Figures have been rounded off to the nearest rupee.