Notes to Accounts of Mohit Paper Mills Ltd.

Mar 31, 2024

r. Provisions, Contingent Liabilities and Contingent Assets

A provision is recognized if. as a result of a past event, the Company has a present legal or constructive obligation that can be estimated reliably, and it is probable that an outflow of economic benefits will be required to settle the obligation. If the effect of the time value of money is material, provisions are determined by discounting the expected future cash flows at a pre-tax rate that reflects current market assessments of the time value of money and the risks specific to the liability. Where discounting is usec_; the increase in the provision due to the passage of tune is recognized as a finance cost.

Contingent Liabilities

A contingent liability exists when there is a possible obligation, or a present obligation that may, but probably will not require an outflow of resources, or a present obligation whose amount cannot be estimated reliably. Contingent liabilities do not warrant provisions, but are disclosed unless the possibility of outflow of resources is remote.

Contingent assets usually arise from unplanned or other unexpected events that give rise to the possibility of an Inflow of economic benefits to the entity. Contingent assets are recognized when the realisation of income is virtually certain, then the related asset is not a contingent asset and its recognition is appropriate.

A contingent asset is disclosed where an inflow of economic benefits is probable.

s. Commitments

Commitments include the amount of purchase order (net of advances) issued to parties for completion of assets. Provisions, contingent liabilities, contingent assets and commitments are reviewed at each reporting date.

t IndAS 116 - Leases

The Company does not have any finance leases. There are no instances in which the company is a lessor.

Hence there is no impact on adoption of Itul AS 116.

• The Term Loan from Union Bank of India of Rs. 222.93 Lakhs (Previous Year of Rs . 438.87 Lakhs) is secured by way of Pari- Passu charge over immovable assets.'''' current assets of the Company and equitable mortgage of factory land & building situated at Village Aaspur Ka and Abdulpur Munnu. Nagina Road. Bijnor and property at East Patel N''agar, New Delhi. Term Loan of Rs. 222.93 Lakhs include UGCEL oi''Rs. 376.00 Lakhs, which has been sanctioned during the time frame of Covid pandemic, for the working capital assistance and has been repaid ofr to the extent.

• The loan is further secured by way of personal guarantee of promoters ''dircctors of the company.

• Rate of Interest of Term Loan from UB1 is EBLR -2.75 %. charges on monthly rest, further in case of UGECI- rate of interest is 7.5() %, to lie charger! on monthly test.

• Current Maturity of Term Loan amounting to Rs. 190.45 Lakhs, has been shown under the head other current liabilities.

• The company does not have any continuing defaults in repayment of any of the loans and interest thereon, as at the reporting date.

leim Loan from Yes Bank

• The Term Loan from Yes Bank of 2,874.96 Lakhs (Previous Year 1.047.63 Lakhs) is secured by way of Pari- Passu charge over all the current assets/ immovable assets of the Company and equitable mortgage of factory land & building situated at Village Aaspur Ka and Abdulpur Munna. Nagina Road. Bijnor and property at Last Patel N''agar. New Delhi.

• The loan is further secuied by way of personal guarantee of proinoteis-''direetois of the company.

• Rate o(Interest ol''Term Loan from UBI is Repo Rate '' 3.45 %. charges on monthly rest

• Current Maturity of Term Loan is Rs 195.59 Lakhs, has been shown under the head other current liabilities

• The company does not have any continuing defaults in repayment of any of the loans and interest thereon, as at the repotting date.

Vehicle Loan font Union Bank

• The Term Loan from Yes Bank of 13.13 Lakhs is secured by way of hypothecation of Vehicle & personal guarantee of directors.

• Rate of Interest of Vehicle Loan from UB1 is (8.05 to 9.80) %. charges on mo nthly rest.

• Current Maturity of Term Loan is 7.32 Lakhs, has been shown under the head other current liabilities

• The company does not have any continuing defaults in repayment of any of the loans and interest thereon, as at the reporting date.

Vehicle Loan from HDFC Bank

• The Term loan from MDFC Bank of 70.23 Lakhs is secured by way of hypothecation of Vehicle & personal guarantee of directors.

• Rate of Interest of Vehicle Loan from IIDFC is (7.50 to 8.51) %, charges on monthly rest.

• Current Maturity of Term Loan is 26.73 Lakhs, has been shown under the head other current liabilities

• The company does not have any continuing defaults in repayment of any of the loans and interest thereon, as at the reporting date.

LiP.m .t''ftfgi .V.Bitf''i .LHuik.ui'' ladia

• Union Bank of India has sanctioned a CC Limit of Ks. 2300.00 Lakhs, which is secured against

hypothecation of Stocks & book debts of the company and collateral security of land, building & entire fixed assets of the company.

• The loan is further secured by way of personal guarantee of promoter s/diteetors of the company.

• Kale of Interest of Cash Credit Limit from IJBI is KBl.R *0.65 "^/o. charges on monthly rest.

• The company does not have any continuing defaults in repayment of any of the loans and interest thereon, as at the reporting date.

Cosh Credit Limit from Yes Bank

• Yes Bank has sanctioned a CC Limit of Rs. 1.000.00 Lakhs, which is secured against hypothecation of

Stocks & book debts of the company and collateral security of land, building & entire fixed assets of the

company.

• The loan is further secured by way of personal guarantee of promoters.''directors of the company.

• Kate of Interest of Cash Credit Limit from Yes Bank is Repo Rate *3.35 %, charges on monthly rest

• The company docs not have any continuing defaults in repayment of any of the loans and interest thereon, as at the reporting date.

Ifrmand Loan, from Yes. Bank..,

• Yes Bank has sanctioned a working capital demand loan of Rs 750 00 Lakhs, which is sub-limit of Cash Credit Limit, which is secured against hypothecation of Stocks & book debts of the company and collateral security of land, building entire fixed assets of the company.

• I lie loan is further secured by way of second charge by way of personal guarantee of promotcrsAlircctors of the company.

• Kate of Interest of Cash Credit Limit from Yes Bank is Repo Rate ''3.10 %. charges on monthly rest

• I he company does not have any continuing defaults in repayment of any of the loans and interest thereon, as at the reporting date

Cash C''ledit l imit from HDFC Bank

• HDFC Bank has sanctioned a CC Limit of Rs. 1.500.00 Lakhs, which is secured against hypothecation of Stocks & book debts of the company and collateral security of law), building & entire fixed assets of the company.

• The loan is further secuted by way of personal guarantee of promotersAlilectors of the company.

• Rate of Interest of Cash Credit Limit from Yes Bank is 3M MCLR ''0.35%, charges on monthly rest.

• The company docs not have any continuing defaults in repayment of any of the loans and interest thereon, as at the reporting date.

IX-Miiaml Loan from HDFC Bank

• HDFC Bank has sanctioned a working capital demand loan of Rs. 1.500.00 Lakhs, which is sub-limit of Cosh Credit Limit, which is secured against hypothecation of Stocks & book debts of the company and collateral security of land, building & enure fixed assets of the company.

• The loan is further secured by way of second charge by way of personal guarantee of promotens''dircctors of the company.

• Rate of Interest of Cash Credit Limit from HDFC Bank is l M T-Bill charges on monthly icttt.

• The company docs not have any continuing defaults in repayment of any of the loans and interest thereon, as at the reporting date.

The Company does not have any fixed-rate financial assets or financial liabilities at fair value through profit or loss. Therefore, a change in interest rates at the reporting date would not affect profit or loss.

i) Risk management framework

The Company''s board of directors 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 analyze the risks laced by the company, to set appropriate risk limits and controls and to monitor risks and adherence to limits. Risk management policies and systems are reviewed regularly to reflect changes in market conditions and the company’s activities.

Tlie Company''s audit committee oversees how management monitors compliance with the company''s risk management policies and procedures, and reviews the adequacy of the risk management framework in relation to the risks faced by the company, t he audit committee is assisted in its oversight role by internal audit Internal audit undertakes both regular and ad hoc reviews of risk management controls and procedures, the results of which are reported to the audit committee.

ii) Credit Risk

Credit risk is the risk of financial loss to live company if a customer or counterparty to a financial instrument fails to meet its contractual obligations, and arises principally from the company"s receivables from customers and loans. The carrying amounts of financial assets represent the maximum credit risk exposure.

lii) Trade receivables

The Company has established a credit policy under which each new customer is analyzed individually for creditworthiness before the payment and delivery terms and conditions are offered. The Company''s review includes external ratings, if they are available, financial statements, credit agency information, industry information and business intelligence. The Company evaluates the customer credentials carefully from trade sources before appointment of any distributor and only financially sound parties are appointed as distributors. The Company secures adequate deposits from its distributor and hence risk of bad debt is limited. The credit outstanding is sought to be limited to the sum of advances''deposits and credit limit determined by the company.

The following table gives details in respect of percentage of revenues generated from top customer and top five customers:

The Company based on internal assessment which is driven by the historical experience.''current facts available in relation to default and delays in collection thereof, the credit risk for trade receivables is considered low. I he Company estimates its allowance for trade receivable using lifetime expected credit loss. Individual receivables which are known to be uncollectible are written off by reducing the carrying amount of trade receivable and the amount of the loss is recognised in the Statement of Profit and Loss within other expenses.

Concentration of significant e red it risk

The ageing of outstanding balance of receivables having more than 10% concentration of credit is within 30 days, and the transactions with them are at arm"s length. There is no risk of credit concentration as far as transactions with them are concerned.

The following table provides information about the exposure to credit risk and expected credit loss for trade receivables:

iv) Cash and cash equivalents

The company holds cash and cash equivalents of Sal 3.12 lakhs at 31 March 2024 (31 March 2023:?s5.34 lakhs). The cash and cash equivalents are held with bank and cash on hand

iv) Liquidity Risk

Liquidity risk is the risk that the Company will encounter difficulty in meeting the obligations associated with its financial liabilities that are settled by delivering cash or another financial asset fhe Company"? approach to manage liquidity is to have sufficient liquidity to meet its liabilities when they arc due. under both normal and stressed circumstances, without incurring losses or risking damage to the Company'' s reputation

Management manages the liquidity risk by monitoring cash How forecasts on a periodic basis and maturity profiles of financial assets and liabilities This monitoring takes into account the accessibility of cash and cash equivalents and additional undrawn financing facilities.

Market risk is the nsk that changes in market prices such as foreign exchange rates anil interest ratcA will allect the coinpany"s income or the value of its holdings of financial instruments. The objective of market risk management is to manage and control market risk exposures w ithin acceptable parameters, while optimizing there turn

vn) Foreign Currency Risk

The company ''s policy is to ensure that the time gap between executing the transaction for import export ami the date for making payment receiving payment is restricted to less than a week so that foreign exchange currency risk is mitigated I he carrying amounts of the company''s foreign exchange monetary items as at the end of reporting period is nil and previous year w as also nil

b- Defined contribution plan

The Company"* provident fund scheme and employee"* state insurance (ESI) fund scheme are defined contribution plans. The Company has recorded expenses of'' 22.47 lakhs (31.03.2022:'' 17.92 lakhs) under provident fund scheme and '' 8.73 lakhs (31.03.2022:'' 7.63 lakhs) under ESI scheme. These have been included in note 25 employees" benefits expenses, in the Statement of Profit and Loss.

e. Defined plan

Gratuity (funded)

The employees" gratuity fund scheme managed by Life Insurance Corporation of India is a defined benefit plan. The present value of obligation is determined based on actuarial valuation using the Projected Unit Credit 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 obligation. The Company made annual contributions to the L1C of India.

The above defined benefit plan exposes the Company to following risks Interest rate risk:

The defined benefit obligation calculated uses a discount rate based on government bonds. If bond yields fall, live defined benefit obligation will tend to increase.

Salary inflation risk:

Higher than expected increase in salary will increase the defined benefit obligation.

Demographic risk:

This is the risk of variability of results due to unsystematic nature of decrements that include mortality, withdrawal, disability and retirement. The effect of these decrements on the defined benefit obligation is not straight forward and depends upon the combination of salary increase, discount rate and vesting criteria. It is important not to overstate withdraw als because in the financial analysis the retirement benefit of a short career employee typically costs less per year as compared to a long service employee.

The Company actively monitors how the duration and the expected yield of the investments arc matching the expected cash outflows arising from the employee benefit obligations. The Company has not changed the processes used to manage its risks from previous periods. I he funds arc managed by specialized team of Life Insurance Corporation of India.

Funding

Gratuity is a funded benefit plan for qualify ing employees. 35% of the plan assets are managed by LIC and balance managed by the management The assets managed are highly liquid in nature and the Company does not expect any significant liquidity risks.

The following table sets out the status of the defined benefit plan as required under Ind-AS 19 - Employee Benefits:

F. Additional disclosure ''''regulatory Information as required by notification tio. CiSR 207(E) dated 24.03.2022 which are not covered in any of the notes above:

(i) Loan or advances granted to the promoters, directors and KMPs and the related parties:

No loon or advances in the nature ofloans have been granted to the promoters, directors, key managerial persons 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

(iil No proceedings have been initiated or pending against the company for holding any benami property under henami property under the Benami Transactions (Prohibition) Act. 1988 (45 of 1988) and the rules made thereunder.

(iii) Willful Defaulter

No bank has declared the company as “willful defaulter".

(iv) Relationship with Struck oft''Companies:

There arc no transaction with the companies whose name is struck off under section 248 of the Companies Act. 2013 or section 560 of Companies Act. 1956 during the year ended 31 March 2022 and the year ended 31 March 2023.

(V) Registration of charges or satisfaction with Registrar of Companies:

All applicable cases where registration of charges or satisfaction is required with Registrar of Companies have been done.

No registration or satisfaction is pending at end of financial year 2023-2024.

(vi) Compliance with number of layers of companies

No layers of companies has been established beyond the limit prescribed as per above said section/ rules.

(vii) Compliance with approved Scheme(s) of Arrangements

No scheme of arrangements has been approved by the competent authority in terms of Section 230 to 237 of the Companies Act. 2013.

G. The outbreak of C''oronavirus (Covid-19) globally and in India has impacted business and economic activities in general. The Company’s sale during the year ended March 2022 was impacted significantly by the pandemic and consequently capacity utilization of the plant was lower and is gradually moving towards normal capacity. As regards the recoverability of assets, the Company expects to fully recover the carrying amounts of the assets. The Company is closely monitoring any material changes to future economic conditions.

H. The previous year figures arc regrouped / reclassified wherever required to make them comparable to current year figures.

As per our report of even dale attached

Fer PANKAJ k CiOYAL A: CO For and on behalf <>1''the Hoard of Directors

Chartered Accountant*

Registration No.: 0U6885C

CA PANKAJ KUMAR GOYAL Sam deep Jain ApjuJain Shivam Sharnia A K Dixit

(Partner)

(Managing Director) (Director) (Company Secretary) (Chief Financial Officer)

Membership No.: 075828 Place. Muza flam a$ai Date: 2#* May. 2024

k

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Mar 31, 2023

r. Provisions, Contingent Liabilities and Contingent Assets

A provision is recognized if, as a result of a past event, the Company has a present legal or constructive obligation that can be estimated reliably, and it is probable that an outflow of economic benefits will be required to settle the obligation. If the effect of the time value of money is material, provisions are determined by discounting the expected future cash flows at a pre-tax rate that reflects current market assessments of the time value of money and the risks specific to the liability. Where discounting is used, the increase in the provision due to the passage of time is recognized as a finance cost.

Contingent Liabilities

A contingent liability exists when there is a possible obligation, or a present obligation that may, but probably will not require an outflow of resources, or a present obligation whose amount cannot be estimated reliably. Contingent liabilities do not warrant provisions, but are disclosed unless the possibility of outflow of resources is remote.

Contingent assets usually arise from unplanned or other unexpected events that give rise to the possibility of an Inflow of economic benefits to the entity. Contingent assets are recognized when the realisation of income is virtually certain, then the related asset is not a contingent asset and its recognition is appropriate.

A contingent asset is disclosed where an inflow of economic benefits is probable.

s. Commitments

Commitments include the amount of purchase order (net of advances) issued to parties for completion of assets. Provisions, contingent liabilities, contingent assets and commitments are reviewed at each reporting date.

t. Ind AS 116 - Leases

The Company does not have any finance leases. There are no instances in which the company is a lessor.

Hence there is no impact on adoption of Ind AS 116.

Nature of Security for Secured Borrowings are given below:

Term Loan from Union Bank of India

• The Term Loan from Union Bank of India of Rs. 438.87 Lakhs (Previous Year of Rs. 333.02 Lakhs) is secured by way of Pari- Passu charge over immovable assets/ current assets of the Company and equitable mortgage of factory land & building situated at Village Aaspur Ka and Abdulpur Munna, Nagina Road, Bijnor and property at East Patel Nagar, New Delhi. Term Loan of Rs. 438.87 Lakhs include UGCEL of Rs. 376.00 Lakhs, which has been sanctioned during the time frame of Covid pandemic, for the working capital assistance.

• The loan is further secured by way of personal guarantee of promoters/directors of the company.

• Rate of Interest of Term Loan from UBI is EBLR 2.75 %, charges on monthly rest. Further in case of UGECL rate of interest is 7.50 %, to be charged on monthly rest.

• Current Maturity of Term Loan amounting to Rs. 265.76 Lakhs, has been shown under the head other current liabilities.

• The company does not have any continuing defaults in repayment of any of the loans and interest thereon, as at the reporting date.

Term Loan from Yes Bank

• The Term Loan from Yes Bank of 1047.63 Lakhs (Previous Year NIL) is secured by way of Pari- Passu charge over all the current assets/ immovable assets of the Company and equitable mortgage of factory land & building situated at Village Aaspur Ka and Abdulpur Munna, Nagina Road, Bijnor and property at East Patel Nagar, New Delhi.

• The loan is further secured by way of personal guarantee of promoters/directors of the company.

• Rate of Interest of T erm Loan from UBI is Repo Rate 3.45 %, charges on monthly rest.

• Current Maturity of Term Loan is NIL, as repayment will start form April-2024

• The company does not have any continuing defaults in repayment of any of the loans and interest thereon, as at the reporting date.

Vehicle Loan from Union Bank of India

• The Term Loan from Yes Bank of 20.37 Lakhs is secured by way of hypothecation of Vehicle & personal guarantee of directors.

• Rate of Interest of Vehicle Loan from UBI is (8.05 to 9.80) %, charges on monthly rest.

• Current Maturity of Term Loan is 5.2 Lakhs, has been shown under the head other current liabilities

• The company does not have any continuing defaults in repayment of any of the loans and interest thereon, as at the reporting date.

Cash Credit Limit from Union Bank of India

• Union Bank of India has sanctioned a CC Limit of Rs. 2300.00 Lakhs, which is secured against hypothecation of Stocks & book debts of the company and collateral security of land, building & entire fixed assets of the company.

• The loan is further secured by way of personal guarantee of promoters/directors of the company.

• Rate of Interest of Cash Credit Limit from UBI is EBLR 0.65 %, charges on monthly rest.

• The company does not have any continuing defaults in repayment of any of the loans and interest thereon, as at the reporting date.

Cash Credit Limit from Yes Bank

• Yes Bank has sanctioned a CC Limit of Rs. 1000.00 Lakhs, which is secured against hypothecation of Stocks & book debts of the company and collateral security of land, building & entire fixed assets of the company.

• The loan is further secured by way of personal guarantee of promoters/directors of the company.

• Rate of Interest of Cash Credit Limit from Yes Bank is Repo Rate 3.35 %, charges on monthly rest.

• The company does not have any continuing defaults in repayment of any of the loans and interest thereon, as at the reporting date.

Demand Loan from Yes Bank

• Yes Bank has sanctioned a working capital demand loan of Rs. 500.00 Lakhs, which is sub-limit of Cash Credit Limit, which is secured against hypothecation of Stocks & book debts of the company and collateral security of land, building & entire fixed assets of the company.

• The loan is further secured by way of second charge by way of personal guarantee of promoters/directors of the company.

• Rate of Interest of Cash Credit Limit from Y es Bank is Repo Rate 3.10 %, charges on monthly rest.

• The company does not have any continuing defaults in repayment of any of the loans and interest thereon, as at the reporting date.

B. Fair value hierarchy

Level 1: Quoted prices (unadjusted) in the active markets for identical assets and liabilities.

Level 2: Input other than quoted prices included in Level 1 that are observable for the assets or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices)

Level 3: Input for the assets or liability that are not based on observable market data (unobservable input) Notes:

a. Fair valuation of financial assets and liabilities with short term maturities is considered as approximate to respective carrying amount due to the short term maturities of these instruments.

b. Fair value of non-current financial assets has not been disclosed as there is no significant differences between carrying value and fair value.

c. The Fair value of borrowings have been disclosed at carrying value which is considered to approximate to fair value.

d. Carrying value of unquoted equity instrument has been considered as an appropriate estimate of fair value because carrying value is considered as approximate to fair value and carrying value represents the best estimate of fair value within that range.

C. Financial risk management

The Company’s activities expose it to market risk, liquidity risk and credit risk. The Company’s primary risk management focus is to minimize potential adverse effects of market risk on its financial performance. The Company’s risk management assessment and policies and processes are established to identify and analyze the risks faced by the Company, to set appropriate risk limits and controls, and to monitor such risks and compliance with the same. Risk assessment and management policies and processes are reviewed regularly to reflect changes in market conditions and the Company’s activities. The Board of Directors and the Audit Committee is responsible for overseeing the Company’s risk assessment and management policies and processes.

This note explains the sources of risk which the entity is exposed to and how the entity manages the risk in the financial statements: -

Fair value sensitivity analysis for fixed-rate instruments

The Company does not have any fixed-rate financial assets or financial liabilities at fair value through profit or loss. Therefore, a change in interest rates at the reporting date would not affect profit or loss.

i) Risk management framework

The Company’s board of directors 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 analyze the risks faced by the company, to set appropriate risk limits and controls and to monitor risks and adherence to limits. Risk management policies and systems are reviewed regularly to reflect changes in market conditions and the company’s activities.

The Company’s audit committee oversees how management monitors compliance with the company’s risk management policies and procedures, and reviews the adequacy of the risk management framework in relation to the risks faced by the company. The audit committee is assisted in its oversight role by internal audit. Internal audit undertakes both regular and adhoc reviews of risk management controls and procedures, the results of which are reported to the audit committee.

ii) Credit Risk

Credit risk is the risk of financial loss to the company if a customer or counterparty to a financial instrument fails to meet its contractual obligations, and arises principally from the company’s receivables from customers and loans. The carrying amounts of financial assets represent the maximum credit risk exposure.

iii) T rade receivables

The Company has established a credit policy under which each new customer is analysed individually for creditworthiness before the payment and delivery terms and conditions are offered. The Company’s review includes external ratings, if they are available, financial statements, credit agency information, industry information and business intelligence. The Company evaluates the customer credentials carefully from trade sources before appointment of any distributor and only financially sound parties are appointed as distributors. The Company secures adequate deposits from its distributor and hence risk of bad debt is limited. The credit outstanding is sought to be limited to the sum of advances/deposits and credit limit determined by the company. The following table gives details in respect of percentage of revenues generated from top customer and top five customers:

iv) Cash and cash equivalents

The company holds cash and cash equivalents of '' 5.35 lakhs at 31 March 2023 (31 March 2022 : '' 87.15 lakhs). The cash and cash equivalents are held with bank and cash on hand. iv) Liquidity Risk

Liquidity risk is the risk that the Company will encounter difficulty in meeting the obligations associated with its financial liabilities that are settled by delivering cash or another financial assets. The Company’s approach to manage liquidity is to have sufficient liquidity to meet it’s liabilities when they are due, under both normal and stressed circumstances, without incurring losses or risking damage to the Company’s reputation.

Management manages the liquidity risk by monitoring cash flow forecasts on a periodic basis and maturity profiles of financial assets and liabilities. This monitoring takes into account the accessibility of cash and cash equivalents and additional undrawn financing facilities.

vi) Market Risk

Market risk is the risk that changes in market prices - such as foreign exchange rates and interest rates - will affect the company’s income or the value of its holdings of financial instruments. The objective of market risk management is to manage and control market risk exposures within acceptable parameters, while optimizing there turn.

vii) Foreign Currency Risk

The company’s policy is to ensure that the time gap between executing the transaction for import / export and the date for making payment / receiving payment is restricted to less than a week so that foreign exchange

b. Defined contribution plan

The Company’s provident fund scheme and employee’s state insurance (ESI) fund scheme are defined contribution plans. The Company has recorded expenses of '' 17.92 lakhs (31.03.2022 : '' 16.86 lakhs) under provident fund scheme and '' 7.63 lakhs (31.03.2022: '' 7.42 lakhs) under ESI scheme. These have been included in note 25 employees benefits expenses, in the Statement of Profit and Loss.

c. Defined plan Gratuity (funded)

The employees’ gratuity fund scheme managed by Life Insurance Corporation of India is a defined benefit plan. The present value of obligation is determined based on actuarial valuation using the Projected Unit Credit Method, which recognises each period of service as giving rise to additional unit of employee benefit entitlement and measures each unit separately to build up the final obligation. The Company made annual contributions to the LIC of India.

The above defined benefit plan exposes the Company to following risks:

Interest rate risk:

The defined benefit obligation calculated uses a discount rate based on government bonds. If bond yields fall, the defined benefit obligation will tend to increase.

Salary inflation risk:

Higher than expected increase in salary will increase the defined benefit obligation.

Demographic risk:

This is the risk of variability of results due to unsystematic nature of decrements that include mortality, withdrawal, disability and retirement. The effect of these decrements on the defined benefit obligation is not straight forward and depends upon the combination of salary increase, discount rate and vesting criteria. It is important not to overstate withdrawals because in the financial analysis the retirement benefit of a short career employee typically costs less per year as compared to a long service employee.

The Company actively monitors how the duration and the expected yield of the investments are matching the expected cash outflows arising from the employee benefit obligations. The Company has not changed the

Funding

Gratuity is a funded benefit plan for qualifying employees. 35% of the plan assets are managed by LIC and balance managed by the management. The assets managed are highly liquid in nature and the Company does not expect any significant liquidity risks.

The following table sets out the status of the defined benefit plan as required under Ind-AS 19 - Employee Benefits:

F. Additional disclosure/regulatory Information as required by notification no. GSR 207(E) dated 24.03.2022 which are not covered in any of the notes above :

(i) Loan or advances granted to the promoters, directors and KMPs and the related parties:

No loan or advances in the nature of loans have been granted to the promoters, directors, key managerial persons 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

(ii) No proceedings have been initiated or pending against the company for holding any benami property under benami property under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and the rules made thereunder.

(iii) Willful Defaulter

No bank has declared the company as “willful defaulter”.

(iv) Relationship with Struck off Companies:

There are no transaction with the companies whose name is struck off under section 248 of the Companies Act, 2013 or section 560 of Companies Act, 1956 during the year ended 31 March 2022 and the year ended 31 March 2023.

(v) Registration of charges or satisfaction with Registrar of Companies:

All applicable cases where registration of charges or satisfaction is required with Registrar of Companies have been done.

No registration or satisfaction is pending at end of financial year 2022-2023.

(vi) Compliance with number of layers of companies

No layers of companies has been established beyond the limit prescribed as per above said section/ rules.

(vii) Compliance with approved Scheme(s) of Arrangements

No scheme of arrangements has been approved by the competent authority in terms of Section 230 to 237 of the Companies Act, 2013.

G. The outbreak of Coronavirus (Covid-19) globally and in India has impacted business and economic activities in general. The Company’s sale during the year ended March 2022 was impacted significantly by the pandemic and consequently capacity utilization of the plant was lower and is gradually moving towards normal capacity. As regards the recoverability of assets, the Company expects to fully recover the carrying amounts of the assets. The Company is closely monitoring any material changes to future economic conditions.

H. The previous year figures are regrouped / reclassified wherever required to make them comparable to current year figures.

As per our report of even date attached

For PANKAJ K. GOYAL & CO For and on behalf of the Board of Directors

Chartered Accountants Registration No.: 006885C

CA Pankaj Kumar Goyal Sandeep Jain Anju Jain Shivam Sharma A.K.Dixit

(Partner) (Managing Director) (Director) (Company Secretary) (Chief Financial Officer)

Membership No.: 075828 DIN: 00458048 DIN: 00459540 Place: Muzaffarnagar Date: 27^th May, 2023

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Mar 31, 2015

1. The Term Loan from Bank of Baroda of Rupees 15542958/-(Previous Year of Rupees 31542958/-) is secured by way of First charge over immovable assets of the Company and equitable mortgage of landed property situated at Village Aaspur Ka & Abdulpur Munna,

2. 9KM Nagina Road, District-Bijnor. The loan is further secured by way of second charge on the current assets of the Company and personal guarantee of the promoter / directors of the company.

3. Working Capital Borrowings from Bank of Baroda are secured against Hypothecation of Stock and Book Debts of the Company. In addition to above, First Charge as Collateral Security over Building and Plant & Machinery both present and future have been created in favour of Bank of Baroda.

4. Land, Building and Plant & Machinery were revalued by Rupees 10,02,83,565/- by an approved valuer on 31.03.1996.The resultant surplus amounting Rupeesl 0,02,83,565/- was credited to Capital Reserve from which depreciation on revalued portion is being written off every year. Depreciation charged for the year include Rupees 11,82,511/- (Previous Year Rupees 13,87,410/-) which is amount of depreciation for the year on the revalued portion and has been transferred from revaluation reserve and credited to Statement of Profit & Loss for the year. This has no impact on profit for the year.

5. Depreciation for the period in the sum of Rupees 3,82,50,774/- is inclusive of the amount of Rupees 11,82,511/- which has been transferred from Capital Reserve.

6.(I) RETIREMENT BENEFITS

The Company has adopted the Revised Accounting Standard-15 (Revised-2005) 'Employee Benefits'. The relevant policies are:

7 SHORT TERM EMPLOYEE BENEFITS

Short term employee benefits are, recognized in the period during which the services have been rendered.

Long Term Employee Benefits

8 Defined Contribution plan

(i) Provident Fund Scheme

Contribution to this scheme are expensed in the Statement of Profit & Loss.

These contribution are made to the fund administered and managed by the Government of India. The Company has no further obligations under these plans beyond its monthly contribution.

(ii) Gratuity

Group Gratuity cum Life Assurance Scheme with the Life Insurance Corporation of India has been taken in such a way that the gratuity enefits will be payable under an irrevocable trust. The trustees appointed for the purpose of administrating the Scheme shall insure gratuity benefits with the LlC. The Company shall pay to the trustees such contributions as are required to secure Gratuity benefits to the employees which will include the liberalized death cover to the employees.

The employees gratuity fund scheme managed by the Life Insurance Corporation of India is a defined benefit plan. The present value of obligation is determined based on actuarial valuation using the Projected Unit Credit 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 obligation.

9. ADDITIONAL NOTES ON FINANCIAL STATEMENTS

1. (a) Previous year figures have been reworked, rearranged regrouped and reclassified, wherever considered necessary.

(b) Figures have been rounded off to the nearest rupee.

2. In the opinion of the Board of Directors, Current Assets, Loans & Advances have a value of realization in the ordinary course of business at least equal to the amount at which they have been stated in the Balance Sheet. The provisions for all known liabilities are adequate and not in excess of amount considered reasonably necessary.

3. Contingent Liability not provided for:

(I) In land Bank Guarantee given by Bank of Baroda for the Company amounting for Rs. 16.75 Lacs and L/C amount Rs. 78.91 Lacs outstanding as on 31.03.2015.

(ii) Estimated amounts of contracts remaining to be executed on capital account and not provided for Rs. NIL (PreRs.ious Year NIL).

4. In compliance to the Accounting Standard-22 on "Accounting for Taxes on Income" issued by the Institute of Chartered Accountants of India (ICAI), Deferred Tax Asset of Rs. 7,36,536/- (Previous Year Rs.14,28,360/- has been provided as at 31st March 2015 and the same has been charged to the Statement of Profit & Loss of the Company. This pertains to the timing difference in Depreciation on Assets as per books of accounts. The Deferred Tax Liability has been calculated by applying tax rate that have been enacted and applicable as on the Balance Sheet date. No liability has been computed in respect of difference considered to be of permanent nature

Current Year Previous Year 31.03.2015 31.03.2014 Amount in Rs. Amount in Rs.

Salary & allowance 3300000 1987500

Total 3300000 1987500

7. There are no impairment of assets in terms of Accounting Standard-28 issued by the Institute of Chartered Accountants of India.

8. Related Parties Disclosures:

Holding Company : NIL

Subsidiary Company : NIL

Key Managerial Personnel : Mr. Sandeep Jain Related Party :

Anju Jain, Mohit Jain

Shubhi Jain, Centurion Paper and Board

Centurion Rubber, Centurion Industries Private Limited

10. In addition to the significant accounting policies applicable to the business segment as set out in Note 27, Notes to Accounts, the accounting policies in relation to segment accounting are as under:

11 The Company has disclosed Business Segment as the primary segment have been identified taking into account the nature of the products, the differing risks and returns, the organization structure and internal reporting system. The Company's operations predominantly relates to manufacturing of paper and other business segment comprises of Soda Ash.

12. Segment Revenue, Segment Results, Segment Assets and Segment Liabilities include the respective amounts identifiable to each of the segments as also amounts allocated on a reasonable basis. The expenses, which are not directly relatable to the business segments are shown as unallocated corporate expenses.

13. Assets and Liabilities that cannot be allocated between the segments are shown as un-allocable corporate assets and liabilities respectively.

14. There are no secondary reportable segments as all operations and customers are located in India. The Company operates in a single geographical segment.

15. INTANGIBLE ASSETS

There are no intangible assets as on date of balance sheet.

---

Mar 31, 2014

1. (a) Previous year figures have been reworked, rearranged regrouped and reclassified, wherever considered necessary.

(b) Figures have been rounded off to the nearest rupee.

2. In the opinion of the Board of Directors, Current Assets, Loans & Advances have a value of realization in the ordinary course of business at least equal to the amount at which they have been stated in the Balance Sheet. The provisions for all known liabilities are adequate and not in excess of amount considered reasonably necessary.

3. Contingent Liability not provided for:

(i) In land Bank Guarantee given by Bank of Baroda for the Company amounting for Rs.16.76 Lacs and L/C amount Rs.112.42 Lacs outstanding as on 31.03.2014.

(ii) Estimated amounts of contracts remaining to be executed on capital account and not provided for Rs.NIL (Previous Year NIL).

4. Based on the information available with the Company, there are no dues outstanding/ payable to Small Scale Industrial Units where the balance in respect of each party as at the yearend exceeds Rs.100000/-, outstanding for more than 30 days.

There are no micro, small and medium enterprise to whom the company owes dues which are outstanding for more than 45 days as on the Balance Sheet date. This information is required to be disclosed under the Micro, Small and Medium Enterprises Development Act, 2006 and has been determined to the extent such parties have been identified on the basis of information available with the Company.

5. There are no impairment of assets in terms of AS-28 issued by the Institute of Chartered Accountants of India.

i. The Company has disclosed Business Segment as the primary segment have been identified taking into account the nature of the products, the differing risks and returns, the organization structure and internal reporting system. The Companies operations predominantly relates to manufacturing of paper and other business segment comprises of Soda Ash.

ii. Segment Revenue, Segment Results, Segment Assets and Segment Liabilities include the respective amounts identifiable to each of the segments as also amounts allocated on a reasonable basis. The expenses, which are not directly relatable to the business segments are shown as unallocated corporate expenses.

iii. Assets and Liabilities that cannot be allocated between the segments are shown as un-allocable corporate assets and liabilities respectively.

iv. There are no secondary reportable segments as all operations and customers are located in India. The Company operates in a single geographical segment.

6. INTANGIBLE ASSETS

On account of prudence and as originally recommended by Accounting Standard 26 on "Intangible Assets", issued by the Institute of Chartered Accountants of India, expenditure on miscellaneous expenditure had been charged to the Statement of Profit & Loss. There are no intangible assets as on date of balance sheet.

---

Mar 31, 2013

1.(a) Previous year figures have been reworked, rearranged regrouped and reclassified, wherever considered necessary.

(b) Figures have been rounded off to the nearest rupee.

2. In the opinion ofthe Board of Directors, Current Assets, Loans and Advances have a value of realization in the ordinary course of business at least equal to the amount at which they have been stated in the Balance Sheet. The provisions for all known liabilities are adequate and not in excess of amount considered reasonably necessary.

3. Contingent Liability not provided for:

i. In land Bank Guarantee given by Bank of Baroda for the Company amounting for Rs. 61.53 Lacs and L/C amount Rs. 125.15 Lacs outstanding as on 31.03.2013.

ii. Estimated amounts of contracts remaining to be executed on capital account and not provided for Rs. NIL (Previous Year NIL).

4. Based on the information available with the Company, there are no dues outstanding/ payable to Small Scale Industrial Units where the balance in respect of each party as at the year end exceeds Rs. 100000/-, outstanding for more than 30 days.

There are no micro, small and medium enterprise to whom the company owes dues which are outstanding for more than 45 days as on the Balance Sheet date. This information is required to be disclosed under the Micro, Small and Medium Enterprises Development Act, 2006 and has been determined to the extent such parties have been identified on the basis of information available with the Company.

5. There are no impairment of assets in terms of AS-28 issued by the Institute of Chartered Accountants of India.

Key Managerial Personnel: Mr.SandeepJain

Related Party:

Anju Jain MohitJain

Centurion Paper and Board Centurion Rubber

ii. Segment Revenue, Segment Results, Segment Assets and Segment Liabilities include the respective amounts identifiable to each ofthe segments as also amounts allocated on a reasonable basis. The expenses, which are not directly relatable to the business segments are shown as unallocated corporate expenses.

iii. Assets and Liabilities that cannot be allocated between the segments are shown as un-allocable corporate assets and liabilities respectively.

iv. There are no secondary reportable segments as all operations and customers are located in India. The Company operates in a single geographical segment. .

6. INTANGIBLE ASSETS

On account of prudence and as originally recommended by Accounting Standard 26 on "Intangible Assets", issued by the Institute of Chartered Accountants of India, expenditure on miscellaneous expenditure had been charged to the Profit & Loss. There are no intangible assets as on date of balance sheet.

---

Mar 31, 2012

1(1) RETIREMENT BENEFITS

The Company has adopted the Revised Accounting Standard-15 (Revised-2005) 'Employee Benefits' The relevant policies are:

Shot Term Employee Benefits

Short term employee benefits are, recognized in the period during which the services have been rendered.

Long Term Employee Benefits

a) Defined Contribution plan

(i) Provident Fund Scheme

Contribution to this scheme are expensed in the Profit & Loss Account.

These contribution are made to the fund administered and managed by the Government of India. The Company has no further obligations under these plans beyond its monthly contribution.

(ii) Gratuity

Group Gratuity cum Life Assurance Scheme with the Life Insurance Corporation of India has been taken in such a way that toe gratuity benefits will be payable under an irrevocable trust. The trustees appointed for the purpose of administrating the Scheme shall insure gratuity benefits with the LIC. The Company shall pay to the trustees such contributions as are required to secure Gratuity benefits to the employees which will include the liberalized death cover to the employees.

The employees gratuity fund scheme managed by the Life Insurance Corporation of India is a defined benefit plan The present value of obligation is determined based on actuarial valuation using the Projected Unit Credit Method which recognizes each penod of service as giving rise to additional unit of employee benefit entitlement and measures each unit separately to build up the final obligation.

DEFINED BENEFIT PUN Actuarial Assumptions

Mortality Rate - Indian Assured Lives Mortality Table (1994-1996)

Discount Rate- 8%p.a.

Interest Rate - 9%

Salary Escalation-7%

Withdrawal Rate -1 % to 3% depending on age

1.(a) Previous year figures have been reworked, rearranged regrouped and reclassified, wherever considered necessary.

2. In the opinion of the Board of Directors, Current Assets, Loans and Advances have a value of realization in the ordinary course of business at least equal to the amount at which they have been stated in the Balance Sheet. The provisions for all known liabilities are adequate and not in excess of amount considered reasonably necessary.

3. Contingent Liability not provided for:

i. In land Bank Guarantee given by Bank of Baroda for the Company amounting for Rs. 288.96 Lacs and L/C amount Rs. 152.27 Lacs outstanding as on 31.03.2012.

ii. Estimated amounts of contracts remaining to be executed on capital account and not provided for Rs. NIL (Previous Year NIL).

iii. Based on the information available with the Company, there are no dues outstanding/ payable to SmaH Scale Industnal Units where the balance in respect of each party as at the year end exceeds ? 100000/ outstanding for more than 30 days.

There are no micro, small and medium enterprise to whom the company owes dues which are outstanding for more than 45 days as on the Balance Sheet date. This information is required to be disclosed under the Micro, Small and Medium Enterprises Development Act, 2006 and has been determined to the extent such parties have been identified on the basis of information available with the Company.

7. There are no impairment of assets in termsof AS-28 issued by the Institute of Chartered Accountants of nidist.

Notes:

In addition to the significant accounting policies applicable to the business segment as set out in Part Aof Schedule 21, Notes to Accounts, the accounting policies in relation to segment accounting are as under

i. The Company has disclosed Business Segment as the primary segment have been identified taking into

account the nature of the products, the differing risks and returns, the organization structure and internal reporting system. The Companies operations predominantly relates to manufacturing of paper and other business segment comprises of Soda Ash.

ii. Segment Revenue, Segment Results, Segment Assets and Segment Liabilities include the respective

mounts identifiable to each of the segments as also amounts allocated on a reasonable basis. The expenses, which are not directly relatable to the business segment are shown as unallocated corporate expenses.

ii. Assets and Liabilities that cannot be allocated between the segments are shown as un-allocable corporate

assets and liabilities respectively.

iv. There are no secondary reportable segments as all operations and customers are located in India. The Company operates in a single geographical segment.

1. INTANGIBLE ASSETS

On account of prudence and as originally recommended by Accounting Standard 26 on "Intangible Assets", issued by the Institute of Chartered Accountants of India, expenditure on miscellaneous expenditure had been charged to the Profit & Loss Account. There are no intangible assets as on date of balance sheet.

---

Mar 31, 2010

1. (a) Previous year figures have been reworked, rearranged regrouped and reclassified, wherever considered necessary.

(b) Figures have been rounded off to the nearest rupee.

2. In the opinion of the Board of Directors, current assets, loans and advances have a value of realization in the ordinary course of business at least equal to the amount at which they have been stated in the Balance Sheet. The provisions for all known liabilities are adequate and not in excess of amount considered reasonably necessary.

3. Contingent Liability not provided for:

i. In land bank guarantee given by Bank of Baroda for the Company amounting to Rs. 7.27 lacs and L/C amounting to Rs.123.92 lacs outstanding as on 31.03.2010.

ii. Estimated amount of contracts remaining to be executed on capital account and not provided for Rs. NIL (previous year NIL).

4. The Term Loan from Bank of Baroda of Rs. 2,82,06,939/- (Previous Year Rs.4,91,43,505/-) is secured by way of first charge over immovable assets of the Company and equitable mortgage of landed property situated at Village Aaspur ka & Abdulpur Munna, 9KM Nagina Road, District - Bijnor. The loan is further secured by way of second charge on the current assets of the Company and personal guarantee of the promoter/directors of the Company.

5. Working capital loan from Bank of Baroda Rs. 5,97,73,890/- (Previous Year Rs. 4,05,95,566/-) is secured by way of hypothecation of stocks of raw material, stores & spares, stock in process, finished goods, book debts and second charge over the plant & machinery of the Company and equitable mortgage of landed property situated at Village Aaspur ka & Abdulpur Munna, 9th Km Nagina Road, District Bijnor. the loan is further secured by way of personal guarantee of the promoter / directors of the Company.

6. the Company has taken vehicle loans from Bank of Baroda Rs. 4,50,000 (Previous year NIL) and Mahindra & Mahindra Financial Services Ltd. Rs. 1,67,331 (Previous year NIL) which are secured by hypothecation of the vehicles financed by them.

7. Land, Building and Plant & Machinery were revalued by Rs.10,02,83,565/- by an approved valuer on 31.03.1996. The resultant surplus amounting Rs. 10,02,83,565/- was credited to capital reserve from which depreciation on revalued portion is being written off every year. Depreciation charged for the year include Rs.23,51,132/- (Previous Year Rs. 27,60,739/-) which is amount of depreciation for the year on the revalued portion and has been transferred from revaluation reserve and credited to Profit & Loss Account of the year.

8. Method of charging depreciation on boiler house and ETP plant has been changed from Written Down Method (WDV) to Straight Line Method (SLM), at the rates and in the manner prescribed in Schedule XIV of the Companies Act, 1956. Accordingly, depreciation has been recalculated on these assets in accordance with the changed method, from the date of the asset coming into use, and the difference arising from the retrospective re-computation has been adjusted in the accounts of the year by crediting the differential amount of Rs. 2,01,29,995/- in the Profit & Loss Account and increasing the net block of fixed assets by equivalent amount. As a result of this change, the charge of depreciation for the current year is lower by Rs.32,83,604/-.

Had there been no change in the method of depreciation, the charge for the year would have been higher by Rs. 32,83,604/- and the net block of assets would have been lower by Rs. 2,34,13,599/-.

On amounts added due to revaluation, made in the year 1996 on basis of an independent valuers report, depreciation is charged as aforesaid over the residual life of the assets as certified by the valuer and is written off against capital reserve.

9. Based on the information available with the Company, there are no dues outstanding/ payable to Small Scale Industrial Units where the balance in respect of each party as at the year end exceeds Rs. 100000/-, outstanding for more than 30 days.

There are no micro, small and medium enterprise to whom the company owes dues which are outstanding for more than 45 days as on the Balance Sheet date. This information is required to be disclosed under the Micro, Small and Medium Enterprises Development Act, 2006 and has been determined to the extent such parties have been identified on the basis of information available with the Company.

10. There are no impairment of assets in terms of AS-28 issued by the Institute of Chartered Accountants of India.

11. Related Parties Disclosures:

Holding Company : NIL

Subsidiary Company : NIL

Key Managerial Personnel: Mr. Sandeep Jain Related Party:

Anju Jain

Mohit Jain

Bijnor Steel & Alloys Private Limited

Mohit Petrochemicals Private Limited

Centurion Paper and Board

Centurion Castings Private Limited

12. INTANGIBLE ASSETS

On account of prudence and as originally recommended by Accounting Standard 26 on "Intangible Assets", issued by the Institute of Chartered Accountants of India, expenditure on miscellaneous expenditure had been charged to the Profit & Loss Account. There are no intangible assets as on date of balance sheet.