Notes to Accounts of Shree Ajit Pulp & Paper Ltd.

Mar 31, 2025

f) Provisions

Provisions are recognised when the Company has a present obligation (legal or constructive) as a result of a past event, it is probable that
the Company will be required to settle the obligation, and a reliable estimate can be made of the amount of the obligation.

The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the end of the
reporting period, taking into account the risks and uncertainties surrounding the obligation. When a provision is measured using the
cash flows estimated to settle the present obligation, its carrying amount is the present value of those cash flows (when the effect of the
time value of money is material).

g) Revenue recognition

Revenue is measured based on the consideration to which the Company expects to be entitled in a contract with a customer and
excludes amounts collected on behalf of third parties. The Company recognises revenue when it transfers control of a product or
service to a customer.

Revenue from the sale of goods is recognised when the Company transfers Control of the product. Control of the product
transfers when the goods have been dispatched from the factory or upon shipment of the product to the customer, provided
transfer of title to the customer occurs and the Company has not retained any significant risks of ownership or future
obligations with respect to the product dispatched or shipped. Amounts disclosed as revenue are net off returns, trade
allowances, rebates and indirect taxes, if any.

A receivable is recognised by the Company when the goods are dispatched to the customer or upon shipment of the product
to the customer as this represents the point in time at which the right to consideration becomes unconditional, as only the passage
of time is required before payment is due.

Export benefits are accounted for in the year of exports based on eligibility and when there is no uncertainty in receiving the same.
Income from windmills

Income from electricity units generated by windmills is accounted as income from windmills at landed cost and has been shown as
such in the Statement of Profit and Loss.

Dividend and interest income

Dividend income from investments is recognised when the shareholder''s right to receive payment has been established.

Interest income from a financial asset is recognised when it is probable that the economic benefits will flow to the Company
and the amount of income can be measured reliably. Interest income is accrued on a time basis, by reference to the principal
outstanding and at the effective interest rate applicable, which is the rate that exactly discounts estimated future cash receipts
through the expected life of the financial asset to that asset’s net carrying amount on initial recognition

h Leases (Ind AS 116

Effective 01 April, 2019, the Company has adopted Ind AS 116 "Leases", applied to all lease contracts existing on 01 April, 2019
using the modified retrospective method of transition. Accordingly, comparatives for the year ended 31 March, 2019 have not been
retrospectively adjusted. The Company’s lease asset classes primarily consist of leases for land.

At the date of commencement of the lease, the Company recognizes a right of use asset (“ROU”) and a corresponding lease liability
for all lease arrangements in which it is a lessee, except for leases with a term of twelve months or less (short-term leases) and low value
leases, if any. For these short-term and low value leases, the Company recognizes the lease payments as an operating expense on a
straight-line basis

over the term of the lease.

The right of use assets are initially recognized at cost, which comprises the initial amount of the lease liability adjusted for any lease
payments made at or prior to the commencement date of the lease plus any initial direct costs less any lease incentives. They are
subsequently measured at cost less accumulated depreciation and impairment losses.

Right of use assets are depreciated from the commencement date on a straight-line basis over the shorter of the lease term and useful life
of the underlying asset. Right of use assets are evaluated for recoverability whenever events or changes in circumstances indicate that
their carrying amounts may not be recoverable.

The lease liability is initially measured at amortized cost at the present value of the future lease payments. The lease payments are
discounted using the interest rate implicit in the lease or, if not readily determinable, using the incremental borrowing rates in the
country of domicile of the leases. Lease liabilities are remeasured with a corresponding adjustment to the related right of use asset
if the Company changes its assessment ifwhether it will exercise an extension or a termination option.

Lease liability and ROU asset have been separately presented in the Balance Sheet and lease payments have been classified as financing
cash flows.

The following is the summary of practical expedients elected on initial application:

1. Applied the exemption not to recognize right-of-use assets and liabilities for leases with less than 12 months of lease term on the
date of initial application

2. Applied the practical expedient to grandfather the assessment of which transactions are leases. Accordingly, Ind AS 116 is applied
only to contracts that were previously identified as leases under Ind AS 17.

i) Borrowing costs

Borrowing costs directly attributable to the acquisition, construction or production of qualifying assets, which are assets that necessarily
take a substantial period of time to get ready for their intended use or sale are added to the cost of those assets, until such time as the
assets are substantially ready for their intended use or sale.

Interest income earned on the temporary investment of specific borrowings pending their expenditure on qualifying assets is deducted
from the borrowing costs eligible for capitalisation.

All other borrowing costs are recognised in the statement of profit and loss in the period in which they are incurred.

j) Government Grant:

Government grants are recognised where there is reasonable assurance that the grant will be received and all attached conditions will be
complied with. When the grant relates to an asset, it is recognised as income in equal amounts over the expected useful life of the related
asset.

k) Employee benefits

Employee benefits includes salaries and wages, provident fund, employee state insurance scheme, gratuity and compensated absences.

i) Defined contribution plans

The Company ''s contribution to provident fund and employee state insurance scheme are considered as defined contribution
plans and are charged as an expense based on the amount of contribution required to be made and when services are rendered
by the employees.

ii) Defined benefit plans

For defined benefit plans, the cost of providing benefits is determined using the projected unit credit method, with actuarial
valuations being carried out at the end of each annual reporting period. Remeasurement, comprising actuarial gains and losses, the
effect of the changes to the asset ceiling (if applicable) and the return on plan assets (excluding net interest), is reflected immediately
in the balance sheet with a charge or credit recognised in other comprehensive income in the period in which they occur.
Remeasurement recognised in other comprehensive income is reflected immediately in retained earnings and is not reclassified to
profit or loss. Past service cost is recognised in profit or loss in the period of a plan amendment. Net interest is calculated by
applying the discount rate at the beginning of the period to the net defined benefit liability or asset. Defined benefit costs are
categorised as follows:

• service cost (including current service cost, past service cost, as well as gains and losses on curtailments and settlements);

• net interest expense or income; and

• remeasurement

The Company presents the first two components of defined benefit costs in the consolidated statement of profit and loss in the
line item ''Employee benefits expense’. Curtailment gains and losses are accounted for as past service costs.

The retirement benefit obligation recognised in the balance sheet represents the actual deficit or surplus in the Group''s defined

benefit plans. Any surplus resulting from this calculation is limited to the present value of any economic benefits available in the
form of refunds from the plans or reductions in future contributions to the plans.

A liability for a termination benefit is recognised at the earlier of when the entity can no longer withdraw the offer of the
termination benefit and when the entity recognises any related restructuring costs

iii) Short-term employee benefits

The undiscounted amount of short-term employee benefits expected to be paid in exchange for the services rendered by employees
are recognised during the year when the employees render the service. These benefits include compensated absences which are
expected to occur within twelve months after the end of the period in which the employee renders the related service.

The cost of short-term compensated absences is accounted as under:

(i) in case of accumulated compensated absences, when employees render the services that increase their entitlement of future
compensated absences; and

(ii) in case of non-accumulating compensated absences, when the absences occur.

iv) Long-term employee benefits

Compensated absences which are not expected to occur within twelve months after the end of the period in which the employee
renders the related service are recognised as a liability at the present value of the defined benefit obligation as at the balance sheet date.

l) Dividend

Provision is made for the amount of any dividend declared, being appropriately authorised and no longer at the discretion of the entity,
on or before the end of the reporting period but not distributed at the end of the reporting period.

m) Rounding off

All amounts disclosed in the financial statements and notes have been rounded off to the nearest Lakh as per the requirement of
Division II, Schedule III, unless otherwise stated.

n) Financial instruments

Financial assets and financial liabilities are recognised when a Group becomes a party to the contractual provisions of the instruments.

) Financial Assets

A. Initial recognition and measurement

All financial assets and liabilities are initially recognized at fair value. Transaction costs that are directly attributable to the
acquisition or issue of financial assets and financial liabilities, which are not at fair value through profit or loss, are adjusted
to the fair value on initial recognition. Purchase and sale of financial assets are recognised using trade date accounting.

B. Subsequent measurement

a) Financial assets carried at Amortised Cost (AC)

A financial asset is measured at amortised cost if it is held within a business model whose objective is to hold the asset in
order to collect contractual cash flows and the contractual terms of the financial asset give rise on specified dates to cash
flows that are solely payments of principal and interest on the principal amount outstanding.

b) Financial assets at Fair Value Through Other Comprehensive Income (FVTOCI)

A financial asset is measured at FVTOCI if it is held within a business model whose objective is achieved by both
collecting contractual cash flows and selling financial assets and the contractual terms of the financial asset give rise on
specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.

c) Financial assets at Fair Value Through Profit or Loss (FVTPL)

A financial asset which is not classified in any of the above categories are measured at FVTPL.

C. Investment in subsidiary and Joint Venture

The Group has accounted for its investments in subsidiary and joint venture at cost.

D. Other Equity Investments

All other equity investments are measured at fair value, with value changes recognised in consolidated statement of profit and loss,
except for those equity investments for which the Group has elected to present the value changes in ‘Other Comprehensive Income’.

E. Impairment of financial assets

The Group applies the expected credit loss model for recognising impairment loss on trade receivables and other contractual
rights to receive cash or other financial instruments.

Expected credit losses are the weighted average of credit losses with the respective risks of default occurring as the weights.

Credit loss is the difference between all contractual cash flows that are due to the Group in accordance with the contract and
ail the cash flows that the Group expects to receive, discounted at the original effective interest rate. The Group estimates
cash flows by considering all contractual terms of the financial instrument.

The Group measures the loss allowance for a financial instrument at an amount equal to the lifetime expected credit losses if
the credit risk on that financial instrument has increased significantly since initial recognition. If the credit risk on a financial
instrument has not increased significantly since initial recognition, the Group measures the loss allowance for that financial
instrument at an amount equal to 12-month expected credit losses. 12-month expected credit losses are portion of the life¬
time expected credit losses and represent the lifetime cash shortfalls that will result if default occurs within the 12 months
after the reporting date and thus, are not cash shortfalls that are predicted over the next 12 months.

If the Group measured loss allowance for a financial instrument at lifetime expected credit loss model in the previous period,
but determines at the end of a reporting period that the credit risk has not increased significantly since initial recognition due
to improvement in credit quality as compared to the previous period, the Group again measures the loss allowance based on
12 -month expected credit losses.

When making the assessment of whether there has been a significant increase in credit risk since initial recognition, the
Group uses the change in the risk of a default occurring over the expected life of the financial instrument instead of the
change in the amount of expected credit losses. To make that assessment, the Group compares the risk of a default occurring
on the financial instrument as at the reporting date with the risk of a default occurring on the financial instrument as at the
date of initial recognition and considers reasonable and supportable information, that is available without undue cost or
effort, that is indicative of significant increases in credit risk since initial recognition. For trade receivables or any contractual
right to receive cash or another financial asset that result from transactions that are within the scope of Ind AS 115, the Group
always measures the loss allowance at an amount equal to lifetime expected credit losses. Further, for the purpose of
measuring lifetime expected credit loss allowance for trade receivables, the Group has used a practical expedient as permitted
under Ind AS 109. This expected credit loss allowance is computed based on a provision matrix which takes into account
historical credit loss experience and adjusted for forward-looking information.

ii) Financial liabilities

A. Initial recognition and measurement

All financial liabilities are recognized at fair value and in case of loans, net of directly attributable cost. Fees of recurring
nature are directly recognised in the consolidated statement of profit and loss as finance cost.

B. Subsequent measurement

Financial liabilities are carried at amortized cost using the effective interest method. For trade and other payables
maturing within one year from the balance sheet date, the carrying amounts approximate fair value due to the short
maturity of these instruments.

iii) Derecognition of financial instruments

The Group derecognizes a financial asset when the contractual rights to the cash flows from the financial asset expire or
it transfers the financial asset and the transfer qualifies for derecognition under Ind AS 109. A financial liability (or a
part of a financial liability) is derecognized from the Group''s Balance Sheet when the obligation specified in the
contract is discharged or cancelled or expires.

o) Segment reporting

The Board of directors assesses performance of the Group as Chief Operating Decision Maker (CODM).

An operating segment is a component of an entity that engages in business activities from which it may earn revenues and incur
expenses, whose operating results are regularly reviewed by the entity’s CODM and make decisions and for which discrete financial
information is available. The CODM have identified one reportable segment i.e. Paper.

p) Taxation

Income tax expense represents the sum of the tax currently payable and deferred tax.

Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from ''profit before tax'' as reported in the consolidated
statement of profit and loss because of items of income or expense that are taxable or deductible in other years and items that are never taxable
or deductible. The Group''s current tax is calculated using tax rates that have been enacted or substantively enacted by the end of the reporting
period.

Deferred tax is recognised on temporary differences between the carrying amounts of assets and liabilities in the consolidated financial
statements and the corresponding tax bases used in the computation of taxable profit. Deferred tax liabilities are generally recognised

for all taxable temporary differences. Deferred tax assets are generally recognised for all deductible temporary differences to the extent
that it is probable that taxable profits will be available against which those deductible temporary differences can be utilised. Such
deferred tax assets and liabilities are not recognised if the temporary difference arises from the initial recognition (other than in a
business combination) of assets and liabilities in a transaction that affects neither the taxable profit nor the accounting profit. In
addition, deferred tax liabilities are not recognised if the temporary difference arises from the initial recognition of goodwill.

Deferred tax liabilities are recognised for taxable temporary differences associated with investments in subsidiary and joint venture, and
interests in joint ventures, except where the Group is able to control the reversal of the temporary difference and it is probable that the
temporary difference will not reverse in the foreseeable future. Deferred tax assets arising from deductible temporary differences
associated with such investments and interests are only recognised to the extent that it is probable that there will be sufficient taxable
profits against which to utilise the benefits of the temporary differences and they are expected to reverse in the foreseeable future. The
carrying amount of deferred tax assets is reviewed at the end of each reporting period and reduced to the extent that it is no longer
probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered.

Deferred tax liabilities and assets are measured at the tax rates that are expected to apply in the period in which the liability is settled or
the asset realised, based on tax rates (and tax laws) that have been enacted or substantively enacted by the end of the reporting period.

The measurement of deferred tax liabilities and assets reflects the tax consequences that would follow from the manner in which the
Group expects, at the end of the reporting period, to recover or settle the carrying amount of its assets and liabilities.

Deferred tax assets include Minimum Alternative Tax (MAT) paid in accordance with the tax laws in India, which is likely to give future
economic benefits in the form of availability of set off against future income tax liability. Accordingly, deferred tax asset is recognised in
the consolidated balance sheet when the asset can be measured reliably and it is probable that the future economic benefit associated
with the asset will be realised. The carrying amount of deferred tax assets is reviewed at the end of each reporting period and reduced to
the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered.

Current and deferred tax for the year

Current and deferred tax are recognised in the consolidated statement of profit and loss, except when they relate to items that are
recognised in other comprehensive income or directly in equity, in which case, the current and deferred tax are also recognised in other
comprehensive income or directly in equity respectively. Where current tax or deferred tax arises from the initial accounting for a
business combination, the tax effect is included in the accounting for the business combination.

q) Foreign exchange transactions and translation

Transactions in foreign currencies i.e. other than the Group’s functional currency of Indian Rupees are recognised at the rates of exchange
prevailing at the dates of the transactions. At the end of each reporting period, monetary items denominated in foreign currencies are
retranslated at the rates prevailing at that date. Non-monetary items carried at fair value that are denominated in foreign currencies are
retranslated at the rates prevailing at the date when the fair value was determined. Non-monetary items that are measured in terms of
historical cost in a foreign currency are not retranslated. Exchange differences on monetary items are recognised in the consolidated
statement of profit and loss in the period in which they arise except for exchange differences on transactions entered into in order to hedge
certain foreign currency risks.

C. Critical accounting judgements and key sources of estimation uncertainty

In the application of the Group’s accounting policies, the management of the Group is required to make judgements, estimates and
assumptions about the carrying amounts of assets and liabilities that are not readily apparent from other sources. The estimates and
associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from
these estimates. The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are
recognised in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future
periods if the revision affects both current and future periods. In the following areas the management of the Group has made critical
judgements and estimates.

Useful lives of property, plant and equipment

The Company reviews the useful lives and carrying amount of property, plant and equipment at the end of each reporting period. This
reassessment may result in change in depreciation expense in future periods.

Estimation of defined benefit obligation

The Group has defined benefit plans for its employees which are actuarially valued. Such valuation is based on many estimates and other
factors, which may have a scope of causing a material adjustment to the carrying amounts of assets and liabilities.

Recognition of deferred tax assets

Deferred tax asset is recognised for all the deductible temporary differences to the extent that it is probable that taxable profit will be available
against which the deductible temporary difference can be utilised. Based on Group’s past history, the management believes that taxable
profits will be available while recognising deferred tax assets.

Recognition and measurement of other provisions

The recognition and measurement of other provisions are based on the assessment of the probability of an outflow of resources and on past
experience and circumstances known at the balance sheet date. The actual outflow of resources at a future date may therefore vary from the
figure so provided and included as liability.

* Includes as at 31 March, 2025''3864.64 lakh (previous year '' 3541.19 lakh) current maturities of Long term borrowings (refer note 19).

# Represents instalment amount at the initial period, subsequently instalment amounts are changing as per the terms of repayment.

Note a. Term loan is secured by way of pari passu charges on Immovable property (Land and Building), Plant and Machinery (present and future)
and other constructions at Vapi of the Company and equitable mortgage on immovable properties situated at Vapi of the Company, further
secured by Hypothecation charge over the entire current assets of the Company including raw materials, stock in process, finished goods, stores and
spares and other consumables, receivables and all other current assets of the Company (present and future) with other lenders under Consortium,
and bears rate of interest ranging from 9.15% to 11.25%.

Note b. Vehicle loans referred in S. No. 10 to 14, are secured by way of hypothecation of Vehicles and bears interest rates ranging from 7.95% to
10.25%.

Note c. Term loan referred to in S. No. 15 is secured by way of mortgage on Guest house situated at Daman bears floating interest rate ranging from
9.25% to 9.40%.

Note d. All term loans from banks are further secured by way of personal guarantee of Mr. Gautam D Shah, Chairman and Managing Director of
the Company.

In the absence of detailed information regarding plan assets which is funded with LIC the composition of each major category of plan assets the
percentage or amount for each category to the fair value of plan assets has not been disclosed.

These plans typically expose the Company to actuarial risks such as:

Investment risk - The present value of the defined benefit plan liability is calculated using a discount rate which is determined by reference to
market yields at the end of the reporting period on government bonds. If the return on plan asset is below this rate, it will create a plan deficit.
Currently, for the plan in India, it has a relatively balanced mix of investments in government securities, and other debt instruments.

Interest rate risk - A fall in the discount rate which is linked to the Government Securities rate will increase the present value of the liability
requiring higher provision. A fall in the discount rate generally increases the mark to market value of the assets depending on the duration of asset.

Asset Liability Matching Risk (ALM) - The plan faces the ALM risk as to the matching cash flow. Since the plan is invested in lines of Rule 101 of
Income Tax Rules, 1962, this generally reduces ALM risk.

Salary risk - The present value of the defined benefit plan liability is calculated by reference to the future salaries of members. As such, an increase in
the salary of the members more than the assumed level will increase the plan''s liability.

Mortality risk - Since the benefits under the plan is not payable for life time and payable till retirement age only, plan does not have any longevity risk.

Concentration Risk - Plan is having a concentration risk as all the assets are invested with the insurance company and a default will wipe out all the
assets. Although probability of this is very less as insurance companies have to follow regulatory guidelines.

In order to protect the capital and optimise returns within acceptable risk parameters, the plan assets are well diversified. The estimate of future
salary increases considered, takes into account the inflation, seniority, promotion, increments and other relevant factors.

The sensitivity analysis have been determined based on reasonably possible changes of the respective assumptions occurring at the end of the
reporting period, while holding all other assumptions constant.

The sensitivity analysis presented above may not be representative of the actual change in the projected benefit obligation as it is unlikely that the
change in assumptions would occur in isolation of one another as some of the assumptions may be correlated.

Furthermore, in presenting the above sensitivity analysis, the present value of the projected benefit obligation has been calculated using the
projected unit credit method at the end of the reporting period, which is the same method as applied in calculating the projected benefit obligation
as recognised in the balance sheet.

There was no change in the methods and assumptions used in preparing the sensitivity analysis from prior years.
iii) Other Long-term Employee Benefits

Compensated absences which are accumulated and not expected to be availed within twelve months after the end of the reporting period in which
the employee renders the related service are recognised as a liability at the present value of the defined benefit obligation as at the balance sheet date.
An amount of '' 26.50 Lakh (previous year '' 12.06 Lakh) has been charged to the Statement of Profit and Loss for the year ended 31 March, 2025
towards Compensated absences.

Note: 33.2 Segment Information

a. Description of segments and principal activities

An operating segment is a component of the Company that engages in business activities from which it may earn revenues and incur expenses,
including revenues and expenses that relate to transactions with any of the Company’s other components, and for which discrete financial
information is available. All operating segments’ operating results are reviewed regularly by the Company’s Board of Directors (BoD) i.e. CODM to
make decisions about resources to be allocated to the segments and assess their performance.

The company has a single operating segment i.e. manufacturing of kraft paper (Testliner and Multilayer Testliner). Accordingly the segment
revenue, segment result, segment assets and segment liabilities are reflected in the financial statements as at and for the financial year ended 31
March, 2025 and 31 March, 2024 respectively.

b. Geographical Information

Revenue from customers is earned mainly in India and non-current assets are located in India.

c. Information about products and services

The company is in single line of business of manufacturing of Kraft paper (Testliner and Multilayer Testliner).

b. Fair Value Hierarchy of Financial Assets and Liabilities

This section explains the judgements and estimates made in determining the fair values of the financial instruments that are (i) recognised and
measured at fair value and (ii) measured at amortised cost and for which fair values are disclosed in the financial statements. To provide an
indication about the reliability of the inputs used in determining fair value, Company has classified its financial instruments into three levels
prescribed under the accounting standards below:

Level 1: Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that the entity can access at the measurement date.
Level 2: Level 2 inputs are inputs other than quoted prices included within level 1 that are observable for the asset or liability, either directly or indirectly.
Level 3: Level 3 inputs are unobservable inputs for the asset or liability.

Company’s policy is to recognise transfers into and transfers out of fair value hierarchy levels as at the end of the reporting period.

(i) Measured at Amortised Cost for which Fair Value is disclosed

The fair values of all current financial assets and liabilities including trade receivables, cash and cash equivalents, bank balances, trade payables, and
other current financial assets and liabilities are considered to be the same as their carrying values, due to their short term nature. The fair values of
all non-current financial assets and liabilities are considered to be the same as their carrying values, as the impact of fair valuation is not material

(ii) Measured at Fair Value Through Other Comprehensive Income (FVTOCI)

The company has investments in quoted equity shares of Gujarat State Financial Corporation and Punjab National Bank. These equity
investments have been classified as Fair Value through Other Comprehensive Income (FVTOCI). Fair value movements are recognized directly in
other comprehensive income on such investments. Accordingly, such quoted investments fall under fair value hierarchy level 1. The fair value of
these investments as at 31 March, 2025 and 31 March, 2024 is '' 2.39 lakh and '' 2.93 lakh respectively.

c. Capital Management and Gearing ratio

Total equity as shown in the balance sheet includes equity share capital, capital reserve, general reserves, securities premium and retained earnings.
The Company aims to manage its capital efficiently so as to safeguard its ability to continue as a going concern and to optimise returns to its
shareholders.

The Company''s policy is to maintain a stable and strong capital structure with a focus on total equity so as to maintain investor, creditors and
market confidence and to sustain future development and growth of its business. The Company will take appropriate steps in order to maintain, or
if necessary adjust, its capital structure. The management monitors the return on capital as well as the level of dividends to shareholders.

(iii) Market Risk

The Company is exposed to the movement in price of key raw materials in domestic and international markets. The Company has in place policies
to manage exposure to fluctuations in the prices of the key raw materials used in operations. The Company manages fluctuations in raw material
price through hedging in the form of advance procurement when the prices are perceived to be low and also enters into advance buying contracts as
strategic sourcing initiative in order to keep raw material and prices under control to the extent possible.

A) Foreign Exchange Risk

The Company is exposed to foreign exchange risk arising from direct transactions in foreign currency and also indirectly through transactions
denominated in foreign currency though settled in functional currency (INR), primarily with respect to the US Dollar (USD). Foreign exchange
risk arises from future commercial transactions and recognised assets and liabilities denominated in a currency that is not the company’s functional
currency (INR).

The risk is measured through a forecast of highly probable foreign currency cash flows. As per the risk management policy, the foreign currency
exposure is unhedged.

The table below shows the unhedged currency exposure of financial assets and liabilities:

Notes forming part of Standalone Financial Statements

Note: 33.9 Other Statutory Information

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

(ii) The Company do not have any charges or satisfaction which is yet to be registered with ROC beyond the statutory period.

(iii) The Company have not traded or invested in Crypto currency or Virtual Currency during the financial year.

"(iv) The Company have not advanced or loaned or invested funds to any other person(s) or entity(ies), including foreign entities (Intermediaries)
with the understanding that the Intermediary shall:

a. 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

b. provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries."

"(v) The Company have not received any fund from any person(s) or entity(ies), including foreign entities (Funding Party) with the understanding
(whether recorded in writing or otherwise) that the Company shall:

a. 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

b. provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries."

(vi) The Company do not have any such transaction which is not recorded in the books of accounts that has been surrendered or disclosed as
income during the year in the tax assessments under the Income Tax Act, 1961 (such as, search or survey or any other relevant provisions of the
Income Tax Act, 1961).

(vii) Monthly statement of current assets (book debts and inventories) is filed by the Company with the bank are in agreement with the unaudited
books of accounts.

(viii) The Company is not declared willful defautler by any banks where Company has availed term loan facilities.

(ix) The Company has complied with the number of layers prescribed under Companies Act, 2013.

(x) The Company has not entered into any Scheme of Arrangement which has an accounting impact on current or previous financial year.

(xi) The Company has not revalued its property, plant and equipment (including right-of-use assets) or intangible assets or both during the current
or previous year.

Note: 33.10

During the current year, the Company successfully completed its Phase II capitalization which includes the installation of advanced technological
equipment at unit II, some of which are being introduced for the first time in India. Additionally, significant upgradation and modernization of
plant and machinery were undertaken to enhance production quality, ensuring it meets global standards. These improvements are expected to
increase the production capacity and strength the Company’s ability to compete in international markets.

Note: 33.11

During the year, the Company received the first and final call money of ''32 per equity share (comprising ''4 towards share capital and ''28 towards
securities premium) on 35,38,517 equity shares out of a total of 35,71,133 partly paid-up equity shares of face value '' 10 each.

The total amount received pursuant to the said call aggregates to ''11.32 crores, including ''9.91 crores towards securities premium. Accordingly,
35,38,517 partly paid-up equity shares have been converted into fully paid-up equity shares.

The balance 32,616 partly paid-up equity shares, on which the first and final call money remains unpaid, have been submitted for forfeiture in
accordance with the applicable provisions of the Companies Act, 2013 and the Articles of Association of the Company. The forfeiture is currently
under consideration by the appropriate authority, and the approval for the same is awaited.

i) This amount is spent for healthcare, education, measures for reducing inequalities faced by socially and economically backward groups, hunger &
poverty, environment sustainability and protection of art & culture.

ii) Amount spent on construction / acquisition of any assets is NIL.

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

*''1.34 Lakhs (previous year '' 2.49) is available for setoff in succeeding years.

Note: 33.15 Approval of financial statements

The financial statements were approved by the board of directors on 29 May, 2025.

For and on behalf of the Board of Directors

Gautam D Shah Bela G Shah Chinmay Methiwala

^CMD Whole-time Director & CFO ^Comp^any ^Secretary

DIN 00397319 DIN 01044910 Membership No. A48146

Place : Vapi
Date : 29 May, 2025

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Mar 31, 2024

f) Provisions

Provisions are recognised when the Company has a present obligation (legal or constructive) as a result of a past event, it is probable that the Company will be required to settle the obligation, and a reliable estimate can be made of the amount of the obligation.

The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the end of the reporting period, taking into account the risks and uncertainties surrounding the obligation. When a provision is measured using the cash flows estimated to settle the present obligation, its carrying amount is the present value of those cash flows (when the effect of the time value of money is material).

g) Revenue recognition

Revenue is measured based on the consideration to which the Company expects to be entitled in a contract with a customer and excludes amounts collected on behalf of third parties. The Company recognises revenue when it transfers control of a product or service to a customer.

Revenue from the sale of goods is recognised when the Company transfers Control of the product. Control of the product transfers when the goods have been dispatched from the factory or upon shipment of the product to the customer, provided transfer of title to the customer occurs and the Company has not retained any significant risks of ownership or future obligations with respect to the product dispatched or shipped. Amounts disclosed as revenue are net off returns, trade allowances, rebates and indirect taxes, if any.

A receivable is recognised by the Company when the goods are dispatched to the customer or upon shipment of the product to the customer as this represents the point in time at which the right to consideration becomes unconditional, as only the passage of time is required before payment is due.

Export benefits are accounted for in the year of exports based on eligibility and when there is no uncertainty in receiving the same. Income from windmills

Income from electricity units generated by windmills is accounted as income from windmills at landed cost and has been shown as such in the Statement of Profit and Loss.

Dividend and interest income

Dividend income from investments is recognised when the shareholder''s right to receive payment has been established.

Interest income from a financial asset is recognised when it is probable that the economic benefits will flow to the Company and the amount of income can be measured reliably. Interest income is accrued on a time basis, by reference to the principal outstanding and at the effective interest rate applicable, which is the rate that exactly discounts estimated future cash receipts through the expected life of the financial asset to that asset''s net carrying amount on initial recognition.

h) Leases (Ind AS 116)

Effective 01 April, 2019, the Company has adopted Ind AS 116 "Leases", applied to all lease contracts existing on 01 April, 2019 using the modified retrospective method of transition. The Company''s lease asset classes primarily consist of leases for land.

At the date of commencement of the lease, the Company recognizes a right of use asset (“ROU”) and a corresponding lease liability for all lease arrangements in which it is a lessee, except for leases with a term of twelve months or less (short-term leases) and low value leases, if any. For these short-term and low value leases, the Company recognizes the lease payments as an operating expense on a straight-line basis over the term of the lease.

The right of use assets are initially recognized at cost, which comprises the initial amount of the lease liability adjusted for any lease

payments made at or prior to the commencement date of the lease plus any initial direct costs less any lease incentives. They are subsequently measured at cost less accumulated depreciation and impairment losses.

Right of use assets are depreciated from the commencement date on a straight-line basis over the shorter of the lease term and useful life of the underlying asset. Right of use assets are evaluated for recoverability whenever events or changes in circumstances indicate that their carrying amounts may not be recoverable.

The lease liability is initially measured at amortized cost at the present value of the future lease payments. The lease payments are discounted using the interest rate implicit in the lease or, if not readily determinable, using the incremental borrowing rates in the country of domicile of the leases. Lease liabilities are remeasured with a corresponding adjustment to the related right of use asset if the Company changes its assessment if whether it will exercise an extension or a termination option.

Lease liability and ROU asset have been separately presented in the Balance Sheet and lease payments have been classified as financing cash flows.

The following is the summary of practical expedients elected on initial application:

1. Applied the exemption not to recognize right-of-use assets and liabilities for leases with less than 12 months of lease term on the date of initial application

2. Applied the practical expedient to grandfather the assessment of which transactions are leases. Accordingly, Ind AS 116 is applied only to contracts that were previously identified as leases under Ind AS 17.

i) Borrowing costs

Borrowing costs directly attributable to the acquisition, construction or production of qualifying assets, which are assets that necessarily take a substantial period of time to get ready for their intended use or sale are added to the cost of those assets, until such time as the assets are substantially ready for their intended use or sale.

Interest income earned on the temporary investment of specific borrowings pending their expenditure on qualifying assets is deducted from the borrowing costs eligible for capitalisation.

All other borrowing costs are recognised in the statement of profit and loss in the period in which they are incurred.

j) Government Grant:

Government grants are recognised where there is reasonable assurance that the grant will be received and all attached conditions will be complied with. When the grant relates to an asset, it is recognised as income in equal amounts over the expected useful life of the related asset.

k) Employee benefits

Employee benefits includes salaries and wages, provident fund, employee state insurance scheme, gratuity and compensated absences.

i) Defined contribution plans

The Company''s contribution to provident fund and employee state insurance scheme are considered as defined contribution plans and are charged as an expense based on the amount of contribution required to be made and when services are rendered by the employees.

ii) Defined benefit plans

For defined benefit plans, the cost of providing benefits is determined using the projected unit credit method, with actuarial valuations being carried out at the end of each annual reporting period. Remeasurement, comprising actuarial gains and losses, the effect of the changes to the asset ceiling (if applicable) and the return on plan assets (excluding net interest), is reflected immediately in the balance sheet with a charge or credit recognised in other comprehensive income in the period in which they occur. Remeasurement recognised in other comprehensive income is reflected immediately in retained earnings and is not reclassified to profit or loss. Past service cost is recognised in profit or loss in the period of a plan amendment. Net interest is calculated by applying the discount rate at the beginning of the period to the net defined benefit liability or asset. Defined benefit costs are categorised as follows:

service cost (including current service cost, past service cost, as well as gains and losses on curtailments and settlements);

net interest expense or income; and

remeasurement.

The Company presents the first two components of defined benefit costs in profit or loss in the line item ''Employee benefits expense''. Curtailment gains and losses are accounted for as past service costs.

The retirement benefit obligation recognised in the balance sheet represents the actual deficit or surplus in the Company''s defined benefit plans. Any surplus resulting from this calculation is limited to the present value of any economic benefits available in the form of refunds from the plans or reductions in future contributions to the plans.

A liability for a termination benefit is recognised at the earlier of when the entity can no longer withdraw the offer of the termination benefit and when the entity recognises any related restructuring costs

iii) Short-term employee benefits

The undiscounted amount of short-term employee benefits expected to be paid in exchange for the services rendered by employees are recognised during the year when the employees render the service. These benefits include compensated absences which are expected to occur within twelve months after the end of the period in which the employee renders the related service.

The cost of short-term compensated absences is accounted as under:

(i) in case of accumulated compensated absences, when employees render the services that increase their entitlement of future compensated absences; and

(ii) in case of non-accumulating compensated absences, when the absences occur.

iv) Long-term employee benefits

Compensated absences which are not expected to occur within twelve months after the end of the period in which the employee renders the related service are recognised as a liability at the present value of the defined benefit obligation as at the balance sheet date.

l) Dividend

Provision is made for the amount of any dividend declared, being appropriately authorised and no longer at the discretion of the entity, on or before the end of the reporting period but not distributed at the end of the reporting period.

m) Rounding off

All amounts disclosed in the financial statements and notes have been rounded off to the nearest Lakh as per the requirement of Division II, Schedule III, unless otherwise stated.

n) Financial instruments

Financial assets and financial liabilities are recognised when the Company becomes a party to the contractual provisions of the instruments.

) Financial Assets

A. Initial recognition and measurement

All financial assets and liabilities are initially recognized at fair value. Transaction costs that are directly attributable to the acquisition or issue of financial assets and financial liabilities, which are not at fair value through profit or loss, are adjusted to the fair value on initial recognition. Purchase and sale of financial assets are recognised using trade date accounting . However, trade receivables that do not contain a significant financing component are measured at transaction price.

B. Subsequent measurement

a) Financial assets carried at Amortised Cost (AC)

A financial asset is measured at amortised cost if it is held within a business model whose objective is to hold the asset in order to collect contractual cash flows and the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.

b) Financial assets at Fair Value Through Other Comprehensive Income (FVTOCI)

A financial asset is measured at FVTOCI if it is held within a business model whose objective is achieved by both collecting contractual cash flows and selling financial assets and the contractual terms of the financial asset give rise on j specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.

c) Financial assets at Fair Value Through Profit or Loss (FVTPL)

A financial asset which is not classified in any of the above categories are measured at FVTPL.

C. Investment in subsidiary and Joint Venture

The Company has accounted for its investments in subsidiary and joint venture at cost.

D. Other Equity Investments

All other equity investments are measured at fair value, with value changes recognised in Statement of Profit and Loss, except for those equity investments for which the Company has elected to present the value changes in ''Other Comprehensive Income''.

E. Impairment of financial assets

The Company applies the expected credit loss model for recognising impairment loss on trade receivables and other contractual rights

to receive cash or other financial instruments.

Expected credit losses are the weighted average of credit losses with the respective risks of default occurring as the weights. Credit loss is the difference between all contractual cash flows that are due to the Company in accordance with the contract and all the cash flows that the Company expects to receive, discounted at the original effective interest rate. The Company estimates cash flows by considering all contractual terms of the financial instrument.

The Company measures the loss allowance for a financial instrument at an amount equal to the lifetime expected credit losses if the credit risk on that financial instrument has increased significantly since initial recognition. If the credit risk on a financial instrument has not increased significantly since initial recognition, the Company measures the loss allowance for that financial instrument at an amount equal to 12-month expected credit losses. 12-month expected credit losses are portion of the life-time expected credit losses and represent the lifetime cash shortfalls that will result if default occurs within the 12 months after the reporting date and thus, are not cash shortfalls that are predicted over the next 12 months.

If the Company measured loss allowance for a financial instrument at lifetime expected credit loss model in the previous period, but determines at the end of a reporting period that the credit risk has not increased significantly since initial recognition due to improvement in credit quality as compared to the previous period, the Company again measures the loss allowance based on 12 -month expected credit losses.

When making the assessment of whether there has been a significant increase in credit risk since initial recognition, the Company uses the change in the risk of a default occurring over the expected life of the financial instrument instead of the change in the amount of expected credit losses. To make that assessment, the Company compares the risk of a default occurring on the financial instrument as at the reporting date with the risk of a default occurring on the financial instrument as at the date of initial recognition and considers reasonable and supportable information, that is available without undue cost or effort, that is indicative of significant increases in credit risk since initial recognition. For trade receivables or any contractual right to receive cash or another financial asset that result from transactions that are within the scope of Ind AS 115, the Company always measures the loss allowance at an amount equal to lifetime expected credit losses. Further, for the purpose of measuring lifetime expected credit loss allowance for trade receivables, the Company has used a practical expedient as permitted under Ind AS 109. This expected credit loss allowance is computed based on a provision matrix which takes into account historical credit loss experience and adjusted for forward-looking information.

ii) Financial liabilities

A. Initial recognition and measurement

All financial liabilities are recognized at fair value and in case of loans, net of directly attributable cost. Fees of recurring nature are directly recognised in the Statement of Profit and Loss as finance cost.

B. Subsequent measurement

Financial liabilities are carried at amortized cost using the effective interest method. For trade and other payables maturing within one year from the balance sheet date, the carrying amounts approximate fair value due to the short maturity of these instruments.

iii) Derecognition of financial instruments

The Company derecognizes a financial assets when the contractual rights to the cash flows from the financial asset expire or it transfers the financial asset and the transfer qualifies for derecognition under Ind AS 109. A financial liability (or a part of a financial liability) is derecognized from the Company''s Balance Sheet when the obligation specified in the contract is discharged or cancelled or expires.

o) Segment reporting

The Board of directors assesses performance of the Company as Chief Operating Decision Maker (CODM).

An operating segment is a component of an entity that engages in business activities from which it may earn revenues and incur expenses, whose operating results are regularly reviewed by the entity''s CODM and make decisions and for which discrete financial information is available. The CODM have identified one reportable segment i.e. Paper.

p) Taxation

Income tax expense represents the sum of the tax currently payable and deferred tax.

Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from ''profit before tax'' as reported in the statement of profit and loss because of items of income or expense that are taxable or deductible in other years and items that are never taxable or deductible. The Company''s current tax is calculated using tax rates that have been enacted or substantively enacted by the end of the reporting period.

Deferred tax

Deferred tax is recognised on temporary differences between the carrying amounts of assets and liabilities in the financial statements and the corresponding tax bases used in the computation of taxable profit. Deferred tax liabilities are generally recognised for all taxable

temporary differences. Deferred tax assets are generally recognised for all deductible temporary differences to the extent that it is probable that taxable profits will be available against which those deductible temporary differences can be utilised. Such deferred tax assets and liabilities are not recognised if the temporary difference arises from the initial recognition (other than in a business combination) of assets and liabilities in a transaction that affects neither the taxable profit nor the accounting profit. In addition, deferred tax liabilities are not recognised if the temporary difference arises from the initial recognition of goodwill.

Deferred tax liabilities are recognised for taxable temporary differences associated with investments in subsidiary and joint venture, and interests in joint ventures, except where the Company is able to control the reversal of the temporary difference and it is probable that the temporary difference will not reverse in the foreseeable future. Deferred tax assets arising from deductible temporary differences associated with such investments and interests are only recognised to the extent that it is probable that there will be sufficient taxable profits against which to utilise the benefits of the temporary differences and they are expected to reverse in the foreseeable future. The carrying amount of deferred tax assets is reviewed at the end of each reporting period and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered.

Deferred tax liabilities and assets are measured at the tax rates that are expected to apply in the period in which the liability is settled or the asset realised, based on tax rates (and tax laws) that have been enacted or substantively enacted by the end of the reporting period.

The measurement of deferred tax liabilities and assets reflects the tax consequences that would follow from the manner in which the Company expects, at the end of the reporting period, to recover or settle the carrying amount of its assets and liabilities.

Deferred tax assets include Minimum Alternative Tax (MAT) paid in accordance with the tax laws in India, which is likely to give future economic benefits in the form of availability of set off against future income tax liability. Accordingly, deferred tax asset is recognised in the balance sheet when the asset can be measured reliably and it is probable that the future economic benefit associated with the asset will be realised. The carrying amount of deferred tax assets is reviewed at the end of each reporting period and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered.

Current and deferred tax for the year

Current and deferred tax are recognised in the statement of profit and loss, except when they relate to items that are recognised in other comprehensive income or directly in equity, in which case, the current and deferred tax are also recognised in other comprehensive income or directly in equity respectively. Where current tax or deferred tax arises from the initial accounting for a business combination, the tax effect is included in the accounting for the business combination.

q) Foreign exchange transactions and translation

Transactions in foreign currencies i.e. other than the Company''s functional currency of Indian Rupees are recognised at the rates of exchange prevailing at the dates of the transactions. At the end of each reporting period, monetary items denominated in foreign currencies are retranslated at the rates prevailing at that date. Nonmonetary items carried at fair value that are denominated in foreign currencies are retranslated at the rates prevailing at the date when the fair value was determined. Nonmonetary items that are measured in terms of historical cost in a foreign currency are not retranslated. Exchange differences on monetary items are recognised in the statement of profit and loss in the period in which they arise except for exchange differences on transactions entered into in order to hedge certain foreign currency risks.

C. Critical accounting judgements and key sources of estimation uncertainty

In the application of the Company''s accounting policies, the management of the Company is required to make judgements, estimates and assumptions about the carrying amounts of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates. The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods. In the following areas the management of the Company has made critical judgements and estimates.

Useful lives of property, plant and equipment

The Company reviews the useful lives and carrying amount of property, plant and equipment at the end of each reporting period. This reassessment may result in change in depreciation expense in future periods.

Estimation of defined benefit obligation

The Company has defined benefit plans for its employees which are actuarially valued. Such valuation is based on many estimates and other factors, which may have a scope of causing a material adjustment to the carrying amounts of assets and liabilities.

Recognition of deferred tax assets

Deferred tax asset is recognised for all the deductible temporary differences to the extent that it is probable that taxable profit will be available against which the deductible temporary difference can be utilised. Based on Company''s past history, the management believes that taxable profits will be available while recognising deferred tax assets.

Recognition and measurement of other provisions

The recognition and measurement of other provisions are based on the assessment of the probability of an outflow of resources and on past experience and circumstances known at the balance sheet date. The actual outflow of resources at a future date may therefore vary from the figure so provided and included as liability.

The sensitivity analysis have been determined based on reasonably possible changes of the respective assumptions occurring at the end of the reporting period, while holding all other assumptions constant.

The sensitivity analysis presented above may not be representative of the actual change in the projected benefit obligation as it is unlikely that the change in assumptions would occur in isolation of one another as some of the assumptions may be correlated.

Furthermore, in presenting the above sensitivity analysis, the present value of the projected benefit obligation has been calculated using the projected unit credit method at the end of the reporting period, which is the same method as applied in calculating the projected benefit obligation as recognised in the balance sheet.

There was no change in the methods and assumptions used in preparing the sensitivity analysis from prior years. iii) Other Long-term Employee Benefits

Compensated absences which are accumulated and not expected to be availed within twelve months after the end of the reporting period in which the employee renders the related service are recognised as a liability at the present value of the defined benefit obligation as at the balance sheet date. An amount of '' 12.06 Lakh (previous year '' 67.96 Lakh) has been charged to the Statement of Profit and Los for the year ended 31 March, 2024 towards Compensated absences.

Note: 33.2 Segment Information

a. Description of segments and principal activities

An operating segment is a component of the Company that engages in business activities from which it may earn revenues and incur expenses, including revenues and expenses that relate to transactions with any of the Company’s other components, and for which discrete financial information is available. All operating segments’ operating results are reviewed regularly by the Company’s Board of Directors (BoD) i.e. CODM to make decisions about resources to be allocated to the segments and assess their performance.

The company has a single operating segment i.e. manufacturing of kraft paper (Testliner and Multilayer Testliner). Accordingly the segment revenue, segment result, segment assets and segment liabilities are reflected ni the financial statements as at and for the financial year ended 31 March, 2024 and 31 March, 2023 respectivelv.

b. Geographical Information

Revenue from customers is earned mainly in India and non-current assets are located in India.

c. Information about products and services

The company is in single line of business of manufacturing of Kraft paper (Testliner and Multilayer Testliner).

*Excludes Financial Assets measured at Cost (refer note b-ii below)

b. Fair Value Hierarchy of Financial Assets and Liabilities

This section explains the judgements and estimates made in determining the fair values of the financial instruments that are (i) recognised and measured at fair value and (ii) measured at amortised cost and for which fair values are disclosed in the financial statements. To provide an indication about the reliability of the inputs used in determining fair value, Company has classified its financial instruments into three levels prescribed under the accounting standards below:

Level 1: Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that the entity can access at the measurement date. Level 2: Level 2 inputs are inputs other than quoted prices included within level 1 that are observable for the asset or liability, either directly or indirectly. Level 3: Level 3 inputs are unobservable inputs for the asset or liability.

Company’s policy is to recognise transfers into and transfers out of fair value hierarchy levels as at the end of the reporting period.

(i) Measured at Amortised Cost for which Fair Value is disclosed

The fair values of all current financial assets and liabilities including trade receivables, cash and cash equivalents, bank balances, trade payables, and other current financial assets and liabilities are considered to be the same as their carrying values, due to their short term nature. The fair values of all non-current financial assets and liabilities are considered to be the same as their carrying values, as the impact of fair valuation is not material.

(ii) Measured at Fair Value Through Other Comprehensive Income (FVTOCI)

The company has investments in quoted equity shares of Gujarat State Financial Corporation and Punjab National Bank. These equity investments have been classified as Fair Value through Other Comprehensive Income (FVTOCI). Fair value movements are recognized directly in other comprehensive income on such investments. Accordingly, such quoted investments fal under fair value hierarchy level 1. The fair value of these investments as at 31 March, 2024 and 31 March, 2023 is ''2.93 lakh and ''1.46 lakh respectively.

c. Capital Management and Gearing ratio

Total equity as shown in the balance sheet includes equity share capital, capital reserve, general reserves and retained earnings.

The Company aims to manage its capital efficiently so as to safeguard its ability to continue as a going concern and to optimise returns to its shareholders. The Company''s policy is to maintain a stable and strong capital structure with a focus on total equity so as to maintain investor, creditors and market confidence and to sustain future development and growth of its business. The Company will take appropriate steps in order to maintain, or if necessary adjust, its capital structure. The management monitors the return on capital as well as the level of dividends to shareholders.

d. Financial risk management

Company’s activities expose it to credit risk, liquidity risk and market risk. This note explains the sources of risk which the entity is exposed to and how the entity manages the risk and its impact on the financial statements

(i) Credit Risk

Credit risk refers to the risk of default on its obligation by the counterparty resulting in a financial loss. Trade receivables are typically unsecured and are derived from revenue earned from customers located in India. Credit risk has always been managed by the company through credit approvals, establishing credit limits and continuously monitoring the creditworthiness of customers to which the Company grants credit terms in the normal course of business. On account of adoption of Ind AS 109, the company uses expected credit loss model to assess the impairment loss or gain.

(ii) Liquidity Risk

Liquidity risk is the risk that the Company will find it difficult in meeting its obligations associated with its financial liabilities in time.

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.

Management monitors rolling forecasts of the Company’s liquidity position and cash and cash equivalents on the basis of expected cash flows.

(iii) Market Risk

The Company is exposed to the movement in price of key raw materials in domestic and international markets. The Company has in place policies to manage exposure to fluctuations in the prices of the key raw materials used in operations. The Company manages fluctuations in raw material price through hedging in the form of advance procurement when the prices are perceived to be low and also enters into advance buying contracts as strategic sourcing initiative in order to keep raw material and prices under control to the extent possible.

A) Foreign Exchange Risk

The Company is exposed to foreign exchange risk arising from direct transactions in foreign currency and also indirectly through transactions denominated in foreign currency though settled in functional currency (INR), primarily with respect to the US Dollar (USD). Foreign exchange risk arises from future commercial transactions and recognised assets and liabilities denominated in a currency that is not the company’s functional currency (INR).

The risk is measured through a forecast of highly probable foreign currency cash flows. As per the risk management policy, the foreign currency exposure is unhedged.

The table below shows the unhedged currency exposure of financial assets and liabilities:

Note: 33.9 Other Statutory Information

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

(ii) The Company do not have any charges or satisfaction which is yet to be registered with ROC beyond the statutory period.

(iii) The Company have not traded or invested in Crypto currency or Virtual Currency during the financial year.

(iv) The Company have not advanced or loaned or invested funds to any other person(s) or entity(ies), including foreign entities (Intermediaries) with the understanding that the Intermediary shall:

a. 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

b. provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries.

(v) The Company have not received any fund from any person(s) or entity(ies), including foreign entities (Funding Party) with the understanding (whether recorded in writing or otherwise) that the Company shall:

a. 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

b. provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

(vi) The Company do not have any such transaction which is not recorded in the books of accounts that has been surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961 (such as, search or survey or any other relevant provisions of the Income Tax Act, 1961).

(vii) Monthly statement of current assets (book debts and inventories) is filed by the Company with the bank are in agreement with the unaudited books of accounts.

(viii) The Company is not declared willful defautler by any banks where Company has availed term loan facilities.

(ix) The Company has complied with the number of layers prescribed under Companies Act, 2013.

(x) The Company has not entered into any Scheme of Arrangement which has an accounting impact on current or previous financial year.

(xi) The Company has not revalued its property, plant and equipment (including rightofuse assets) or intangible assets or both during the current or previous year.

Note: 33.10 On February 26, 2024, the Company had issued and allotted 35,71,133 Equity Shares (Partly paid-up), Face Value of '' 10 each of the Company on rights basis in the ratio of 2 equity share for every 3 equity shares held, to eligible equity shareholders of the Company at an issue price of '' 80/- per Equity Share (including premium of '' 70/- per Rights Equity Share) for an aggregate amount up to '' 28.56 Crores. An amount equivalent to 60% of the issue price vzi. '' 48/- per equity share was received on application and an amount equivaient to 40% of the issue price viz. '' 32/- per equity share is pending to be raised as the first and final call.

i) This amount is spent for healthcare, education, measures for reducing inequalities faced by socially and economically backward groups, hunger & poverty, environment sustainability and protection of art & culture.

ii) Amount spent on construction / acquisition of any assets is NIL.

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

* '' 2.49 Lakhs (previous year ('' 2.31 Lakhs) is available for setoff in succeeding years.

Note: 33.14 Approval of financial statements

The financial statements were approved by the board of directors on 29 May, 2024.

For and on behalf of the Board of Directors

Gautam D Shah Bela G Shah Shanoo Mathew

CMD Whole-time Director & CFO ^ComP^any ^Secretary

DIN: 00397319 DIN: 01044910 ^{Membership N}°. A⁶⁰⁶⁸⁸

Place : Vapi Date : 29 May, 2024

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Mar 31, 2018

Note : 1

A) Corporate information:

Shree Ajit Pulp And Paper Ltd (‘the Company’) is a public company incorporated in India. Its shares are listed on Bombay Stock Exchange and Vadodara Stock Exchange. The Company is engaged in the manufacturing of Kraft Paper (Testliner / Multilayer Testliner) which is mainly used for manufacturing of corrugated boxes.

The Company owns and operates manufacturing unit located in the state of Gujarat, India at Morai, Vapi.

The Company has adopted Indian Accounting Standards (Ind AS) as notified by the Ministry of Corporate Affairs with effect from April 1, 2017, with a transition date of April 1, 2016. The adoption of Ind AS has been carried out in accordance with Ind AS 101, First-time Adoption of Indian Accounting Standards. Ind AS 101 requires that all Ind AS standards and interpretations that are issued and effective for the ‘First Ind AS financial statements’ for the year ended March 31, 2018, be applied retrospectively and consistently for all financial years presented. However, in preparing these Ind AS financial statements, the Company has availed of certain exemptions and exceptions in accordance with Ind AS 101, as explained in note 2. The resulting difference between the carrying values of the assets and liabilities in the financial statements as at the transition date under Ind AS and Previous GAAP have been recognised directly in retained earnings.

B) Basis of preparation and presentation

i) Statement of compliance

The financial statements as at and for the year ended March 31, 2018 have been prepared in accordance with Indian Accounting Standards (“Ind AS”) notified under the Companies (Indian Accounting Standards) Rules, 2015 and Companies (Indian Accounting Standards) Amendment Rules, 2016.

In accordance with Ind AS 101 First-time Adoption of Indian Accounting Standard, the Company has presented a reconciliation from the presentation of financial statements under Accounting Standards notified under the Companies (Accounting Standards) Rules, 2006 (“Previous GAAP”) to Ind AS for Shareholders’ equity as at March 31, 2017 and April 1, 2016 and of the total comprehensive income for the year ended March 31, 2017.

For all the periods up to and including the year ended March 31, 2017, the Company prepared its financial statements in accordance with Accounting Standards notified under the section 133 of the Companies Act, 2013 (Indian GAAP). These financial statements for the year ended March 31, 2018 are the Company’s first Ind financial statements.

ii) Basis of measurement

The financial statements have been prepared on a historical cost convention and on an accrual basis, except for certain items that are measured at fair value as required by relevant Ind AS:

1. Financial assets and financial liabilities measured at fair value (refer accounting policy on financial instruments);

2. Defined benefit and other long-term employee benefits.

C. Critical accounting judgements and key sources of estimation uncertainty

In the application of the Company’s accounting policies, the management of the Company is required to make judgements, estimates and assumptions about the carrying amounts of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates. The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods. In the following areas the management of the Company has made critical judgements and estimates.

Useful lives of property, plant and equipment

The Company reviews the useful lives and carrying amount of property, plant and equipment at the end of each reporting period. This reassessment may result in change in depreciation expense in future periods.

Estimation of defined benefit obligation

The Company has defined benefit plans for its employees which are actuarially valued. Such valuation is based on many estimates and other factors, which may have a scope of causing a material adjustment to the carrying amounts of assets and liabilities.

Recognition of deferred tax assets

Deferred tax asset is recognised for all the deductible temporary differences to the extent that it is probable that taxable profit will be available against which the deductible temporary difference can be utilised. The management assumes that taxable profits will be available while recognising deferred tax assets.

Recognition and measurement of other provisions

The recognition and measurement of other provisions are based on the assessment of the probability of an outflow of resources and on past experience and circumstances known at the balance sheet date. The actual outflow of resources at a future date may therefore vary from the figure so provided and included as liability.

2. First time adoption of Ind AS

These are the Company’s first financial statements prepared in accordance with Ind AS. The accounting policies set out in above paragraphs have been applied in preparing the financial statements for the year ended March 31, 2018, the comparative information presented in these financial statements for the year ended March 31, 2017 and in the preparation of the opening Ind AS balance sheet as at April 1, 2016 (the Company’s date of transition). In preparing its opening Ind AS balance sheet, the Company has adjusted the amounts reported previously in financial statements prepared in accordance with the accounting standards notified under Companies (Accounting Standards) Rules, 2006 (as amended) and other relevant provisions of the Act (previous GAAP or Indian GAAP). An explanation of how the transition from previous GAAP to Ind AS has affected the Company’s financial position, financial performance and cash flows is set out in the following tables and notes:

Explanation 1 - Exemptions and exceptions availed

Explanation 2 - Reconciliation of total equity as at March 31, 2017 and as at April 1, 2016.

Explanation 3 - Reconciliation of total comprehensive income for the year ended March 31, 2017.

Explanation 4 - Impact on cash flows for the year ended March 31, 2017.

Explanation 1 - Exemptions and exceptions availed

Set out below are the applicable Ind AS 101 optional exemptions and mandatory exceptions applied in the transition from previous GAAP to Ind AS

a. Ind AS Optional exemptions

Deemed Cost

Ind AS 101 permits a first-time adopter to elect to continue with the carrying value for all of its property, plant and equipment as recognised in the financial statements as at the date of transition to Ind AS, measured as per the previous GAAP and use that as its deemed cost as at the date of transition after making necessary adjustments for de-commissioning liabilities. This exemption can also be used for intangible assets covered by Ind AS 38 -Intangible Assets. Accordingly, the Company has elected to measure all of its property, plant and equipment and intangible assets at their previous GAAP carrying value.

Equity investments at FVTOCI

The Company has designated investment in equity shares (Other than investment in subsidiary and joint venture) at FVTOCI on the basis of facts and circumstances that existed at the transition date.

Investments in subsidiary and joint venture

Ind AS 101 permits a first-time adopter to measure investments in subsidiary and joint venture at cost. The cost of such investment may be determined in accordance with Ind AS 27 or deemed cost (fair value or previous GAAP carrying value) in its opening Ind AS balance sheet. Accordingly, the Company has elected to measure investments in subsidiary and joint venture at their previous GAAP carrying value.

b. Ind AS mandatory exceptions

i) Estimates

An entity’s estimates in accordance with Ind ASs at the date of transition shall be consistent with estimates made for the same date in accordance with previous GAAP (after adjustments to reflect any difference in accounting policies), unless there is objective evidence that those estimates were in error. Ind AS estimates as at April 1, 2016 are consistent with the estimates as at the same date made in conformity with previous GAAP.

ii. Classification and measurement of financial assets

Ind AS 101 requires an entity to assess classification and measurement of financial assets on the basis of the facts and circumstances that exist at the date of transition to Ind AS. The Company accordingly has made such assessment to assess such classification and measurement on the basis of the facts and circumstances that exist at the date of transition to Ind AS. Similarly, the Company has determined the classification of investments at FVTOCI based on the facts and circumstances that are existing as of transition date.

iii. De-recognition of financial assets and liabilities

Ind AS 101 requires a first-time adopter to apply the de-recognition provisions of Ind AS 109 prospectively for transactions occurring on or after the date of transition to Ind AS. However, Ind AS 101 allows a first-time adopter to apply the de-recognition requirements in Ind AS 109 retrospectively from a date of the entity’s choosing, provided that the information needed to apply Ind AS 109 to financial assets and financial liabilities de recognised as a result of past transactions was obtained at the time of initially accounting for those transactions. The Company has elected to apply the de-recognition provisions of Ind AS 109 prospectively from the date of transition to Ind AS.

iv. Impairment of financial assets

The Company has applied the impairment requirements of Ind AS 109 retrospectively; however, as permitted by Ind AS 101, it has used reasonable and supportable information that is available without undue cost or effort to determine the credit risk at the date that financial instruments were initially recognised in order to compare it with the credit risk at the transition date. Further, the Company has not undertaken an exhaustive search for information when determining, at the date of transition to Ind Ass, whether there have been significant increases in credit risk since initial recognition, as permitted by Ind AS 101.

Notes to the reconciliations:

a. Under IGAAP, leasehold land was capitalised under fixed assets and depreciated over the lease term. Under Ind AS, such leasehold lands have to be assessed as to whether they are an operating lease or a financing lease, basis the terms and conditions in the lease agreement. Consequently, leasehold lands that classify as operating leases have been removed from property, plant and equipment and treated as a separate prepaid asset. The same is expensed off to the consolidated statement of profit and loss over the lease term as lease rent. Therefore an amount of ‘21.91 lakh and ‘20.40 lakh has been reclassified as at April 1, 2016 and March 31, 2017 respectively from property, plant and equipment to prepaid current and prepaid non-current asset. This transaction does not have any impact on equity.

b. The investments in equity instruments under IGAAP were carried at lower of cost and fair value. Under Ind AS, the investments in equity investments are to be fair valued with the corresponding gains/losses to be recognised in the consolidated statement of profit and loss except for investment in joint venture for which optional exemption is available to value these at cost pursuant to Ind AS 101. Consequently, there is an increase in equity by Rs.1.58 lakh and ‘2.90 lakh as on April 1, 2016 and March 31, 2017 respectively.

c. Under IGAAP, dividends proposed by the board of directors after the balance sheet date but before the approval of the financial statements were considered as an adjusting event. Accordingly, provision for proposed dividend and tax on dividend were recognised as a liability. Under Ind AS, such dividends are recognised when the same is approved by the shareholders in the general meeting. Accordingly, the liability for proposed dividend for the year ended 31 March 2016, and tax there on for financial year 2015-16 of Rs.48.36 lakh has been reversed with corresponding adjustment in retained earnings. Consequently, the total equity increased by an equivalent amount.

d. Deferred taxes on the above adjustments have also been provided. Deferred tax liability has been recognised to the tune of ‘0.55 lakh and Rs.1.01 lakh as on April 1, 2016 and March 31, 2017 respectively.

e. Under the previous GAAP, revenue from sale of goods was presented exclusive of excise duty. Under Ind AS, revenue from sale of goods is presented inclusive of excise duty. The excise duty paid is presented on the face of the consolidated statement of profit and loss as part of expenses. This change has resulted in an increase in total revenue and total expenses for the year ended March 31, 2017 by Rs.1,311.52 lakh. There is no impact on equity and profit.

f. Under Ind AS, the investments in equity instruments are carried at fair value through other comprehensive income. Consequently, the profit for the year ended March 31, 2017 has increased by Rs. 1.32 lakh (refer note b above).

g. Under Ind AS, remeasurements i.e actuarial gains and losses and the return on plan assets, excluding amounts included in the net interest expense on the net defined benefit liability are recognised in the other comprehensive income instead of the consolidated statement of profit and loss. Under the previous GAAP, these remeasurements were forming part of statement of profit and loss for the year.

As a result of this change, the profit for the year ended March 31, 2017 increased by ‘0.72 lakh. These remeasurement losses have been reclassified to other comprehensive income at ‘0.47 lakh (net of taxes Rs. 0.25 lakh). This reclassification has led no impact on equity or profit for the year.

h. Under IGAAP, the depreciation on lease hold lands was classified as a depreciation expense. Since under Ind AS, these leasehold lands are classified as operating leases, the prepaid rent has been expensed off as lease rent. Hence, the depreciation expense has reduced by Rs.1.50 lakh and other expenses has increased by the same amount. There is no impact on profit for the year (refer note a above).

i. The deferred tax liability has been created on the above adjustments to the tune of ‘0.46 lakh for the year ended March 31, 2017. Consequently, the profit for the year has reduced by an equivalent amount (refer note d above).

Explanation 4 - Impact on cash flows for the year ended March 31, 2017.

There is no impact on cash flows due to transition to Ind AS.

Note 3.1 : Inventories have been offered as security against the term loans and working capital loans provided by the banks (refer note 16.1 and 19.1).

Note 3.2 : Inventory of raw materials includes Goods - in - transit as at 31 March, 2018 NIL , as at 31 March, 2017 NIL and as at 1 April, 2016 Rs. 98.62 lakh.

Note 3.3 : Inventory of consumables includes Goods-in-transit as at 31 March, 2018 NIL , as at 31 March, 2017 Rs. 117.38 lakh and as at 1 April, 2016 Rs. 23.07 lakh.

Note : 4.1 Information about major customers : One customer contributed to more than 10% of the total revenue individually during the year ended March 31, 2018, March 31, 2017 and As at 1st April, 2016. Total revenue from this customer is Rs. 4,528.40 lakh, Rs. 4,701.08 lakh and Rs. 4,955.27 lakh during the year ended March 31, 2018, March 31, 2017 and as at 1st April, 2016 respectively.

Note 5.1 : Fire occurred at one of the raw material godowns of the Company on 31st August, 2016 resulting into loss of raw material inventory amounting to Rs. 422.99 lakh. The Company has lodged an insurance claim for loss of raw material inventory based on its assessment and taking into consideration terms and conditions of insurance policy. During the year the Company has received Rs. 364.44 lakh against the claim lodged. Accordingly balance amount of Rs. 58.55 lakh is charged to statement of profit and loss as an exceptional item for the year ended 31st March, 2018.

Note : 5.2 Terms and Rights attached to Equity Shares :

The company has only one class of equity shares having a par value of Rs. 10 per share. Each Shareholder of equity share is entitled to one vote per share. The company declares and pays dividend in Indian Rupees. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting. Further, the Board of Director may also announce an interim dividend.

In the event of liquidation of the company, the holder of equity shares will be entitled to receive remaining assets of the company after distribution of all preferential amounts in proportion to their shareholdings.

Note : 6.1 Cash Credit is secured by way of hypothecation of stocks, book debts, furniture, fixture and fitting, office equipment and plant and machinery and equitable mortgage of immovable properties on pari passu basis and personal guarantee of Chairman and Managing Director of the Company. The Cash Credit is repayable on demand and bears interest at the rate of base rate plus 1.5% to 2.75%.

Note : 7.1 Consequent to introduction of Goods and Services Tax (GST) with effect from 1st July, 2017, Central Excise, Value Added Tax (VAT) etc. have been subsumed to GST. In accordance with Ind AS -18 on Revenue and Schedule III of the Companies Act, 2013, unlike Excise Duties, levies like GST, VAT are not part of Revenue. The following additional information is being provided to facilitate such understanding :

Disclosures under Indian Accounting Standards:

Note: 8.1 Employee Benefit Obligations

a. Short-term Employee Benefits

These benefits include wages and salaries, including other monetary and non-monetary benefits, compensated absences which are either non-accumulating or accumulated and expected to be availed within twelve months after the end of the reporting period.

b. Long-term Employee Benefits

i) Defined Contribution Plans

The Company makes Provident Fund contributions, which are defined contribution plans, for qualifying employees. Company has no further payment obligations once the contributions have been paid. Under the Provident Fund Schemes, the Company is required to contribute a specified percentage of the payroll costs to fund the benefits. The contributions payable to these plans by the Company are in compliance with the rates specified in the rules of the schemes. The Company recognised Rs. 34.61 lakh (previous year ‘30.42 Lakh) as an expense and included in Note 29 - Employee Benefit Expenses ‘Contribution to provident fund and other funds’ in the Statement of Profit and Loss for the year ended March 31, 2018.

ii) Defined Benefit Plans

The Company has a defined benefit plan for gratuity plan in India (funded). The company’s defined benefit plan for gratuity is a final salary plan for employees, which requires contributions to be made to a separately administered fund.

These plans typically expose the Group to actuarial risks such as :

Investment risk - The present value of the defined benefit plan liability is calculated using a discount rate which is determined by reference to market yields at the end of the reporting period on government bonds. If the return on plan asset is below this rate, it will create a plan deficit. Currently, for the plan in India, it has a relatively balanced mix of investments in government securities, and other debt instruments.

Interest rate risk - A fall in the discount rate which is linked to the Government Securites Rate will increase the present value of the liability requiring higher provision. A fall in the discount rate generally increases the mark to market value of the assets depending on the duration of asset.

Asset Liability Matching Risk (ALM) - The plan faces the ALM risk as to the matching cash flow. Since the plan is invested in lines of Rule 101 of Income Tax Rules, 1962, this generally reduces ALM risk.

Salary risk - The present value of the defined benefit plan liability is calculated by reference to the future salaries of members. As such, an increase in the salary of the members more than the assumed level will increase the plan’s liability. Mortality risk - Since the benefits under the plan is not payable for life time and payable till retirement age only, plan does not have any longevity risk.

Concentration Risk - Plan is having a concentration risk as all the assets are invested with the insurance company and a default will wipe out all the assets. Although probability of this is very less as insurance companies have to follow regulatory guidelines.

In order to protect the capital and optimise returns within acceptable risk parameters, the plan assets are well diversified. The estimate of future salary increases considered, takes into account the inflation, seniority, promotion, increments and other relevant factors.

Sensitivity

Sensitivity of the projected benefit obligation on assumptions :

The sensitivity analysis have been determined based on reasonably possible changes of the respective assumptions occurring at the end of the reporting period, while holding all other assumptions constant.

The sensitivity analysis presented above may not be representative of the actual change in the projected benefit obligation as it is unlikely that the change in assumptions would occur in isolation of one another as some of the assumptions may be correlated.

Furthermore, in presenting the above sensitivity analysis, the present value of the projected benefit obligation has been calculated using the projected unit credit method at the end of the reporting period, which is the same method as applied in calculating the projected benefit obligation as recognised in the balance sheet.

There was no change in the methods and assumptions used in preparing the sensitivity analysis from prior years.

iii) Other Long-term Employee Benefits

Compensated absences which are accumulated and not expected to be availed within twelve months after the end of the reporting period in which the employee renders the related service are recognised as a liability at the present value of the defined benefit obligation as at the balance sheet date.

An amount of Rs.49.61 Lakh (previous year Rs. 54.41 Lakh) has been charged to the Statement of Profit and Loss for the year ended March 31, 2018 towards Compensated absences.

Note: 8.2 Segment Information

a. Description of segments and principal activities

An operating segment is a component of the Company that engages in business activities from which it may earn revenues and incur expenses, including revenues and expenses that relate to transactions with any of the Company’s other components, and for which discrete financial information is available. All operating segments’ operating results are reviewed regularly by the Company’s Board of Directors (BoD) i.e. CODM to make decisions about resources to be allocated to the segments and assess their performance.

The company has a single operating segment i.e. manufacturing of kraft paper (Testliner and Multilayer Testliner). Accordingly the segment revenue, segment result, segment assets and segment liabilities are reflected in the financial statements as at and for the financial year ended March 31, 2018, March 31, 2017 and as at 1st April, 2016 respectively.

b. Geographical Information

Revenue from customers earned and non-current assets are located, in India.

c. Information about products and services

The company is in single line of business of manufacturing of Kraft paper (Testliner / Multilayer Testliner ).

Note: 8.3 Related Party Disclosure Details of Related Parties:

Note: 8.4 Financial Instruments (Fair Value Measurements) :

The Company has various financial assets and liabilities. The disclosures regarding the classification, fair value hierarchy, capital management, markets risk, credit risks and liquidity risks are as follows :

b. Fair Value Hierarchy of Financial Assets and Liabilities

This section explains the judgements and estimates made in determining the fair values of the financial instruments that are (i) recognised and measured at fair value and (ii) measured at amortised cost and for which fair values are disclosed in the financial statements. To provide an indication about the reliability of the inputs used in determining fair value, Company has classified its financial instruments into three levels prescribed under the accounting standards below :

Level 1: Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that the entity can access at the measurement date.

Level 2: Level 2 inputs are inputs other than quoted prices included within level 1 that are observable for the asset or liability, either directly or indirectly.

Level 3 : Level 3 inputs are unobservable inputs for the asset or liability.

Company’s policy is to recognise transfers into and transfers out of fair value hierarchy levels as at the end of the reporting period.

(i) Measured at Amortised Cost for which Fair Value is disclosed

The fair values of all current financial assets and liabilities including trade receivables, cash and cash equivalents, bank balances, trade payables, and other current financial assets and liabilities are considered to be the same as their carrying values, due to their short term nature. The fair values of all non - current financial assets and liabilities are considered to be the same as their carrying values, as the impact of fair valuation is not material.

(ii) Measured at Fair Value Through Other Comprehensive Income (FVTOCI)

The company has investments in quoted equity shares of Gujarat State Financial Corporation and Punjab National Bank. These equity investments have been classified as Fair Value through Other Comprehensive Income (FVTOCI). Fair value movements are recognized directly in other comprehensive income on such investments. Accordingly, such quoted investments fall under fair value hierarchy level 1. The fair value of these investments as at March 31,2018, March 31, 2017 and April 1, 2016 is Rs. 2.49 lakh, Rs. 3.57 lakh, Rs. 2.26 lakh respectively.

c. Capital Management and Gearing ratio

Total equity as shown in the balance sheet includes equity share capital, general reserves and retained earnings.

The Company aims to manage its capital efficiently so as to safeguard its ability to continue as a going concern and to optimise returns to its shareholders.

The Company’s policy is to maintain a stable and strong capital structure with a focus on total equity so as to maintain investor, creditors and market confidence and to sustain future development and growth of its business. The Company will take appropriate steps in order to maintain, or if necessary adjust, its capital structure. The management monitors the return on capital as well as the level of dividends to shareholders.

d. Financial risk management

Company’s activities expose it to credit risk, liquidity risk and market risk. This note explains the sources of risk which the entity is exposed to and how the entity manages the risk and its impact on the financial statements

(i) Credit Risk

Credit risk refers to the risk of default on its obligation by the counterparty resulting in a financial loss. Trade receivables are typically unsecured and are derived from revenue earned from customers located in India. Credit risk has always been managed by the company through credit approvals, establishing credit limits and continuously monitoring the creditworthiness of customers to which the Company grants credit terms in the normal course of business. On account of adoption of Ind AS 109, the company uses expected credit loss model to assess the impairment loss or gain.

(ii) Liquidity Risk

Liquidity risk is the risk that the Company will find it difficult in meeting its obligations associated with its financial liabilities in time.

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.

Management monitors rolling forecasts of the Company’s liquidity position and cash and cash equivalents on the basis of expected cash flows.

The tables below analyses the Company’s financial liabilities into relevant maturity groupings based on their contractual maturities.

(iii) Market Risk

The Company is exposed to the movement in price of key raw materials in domestic and international markets. The Company has in place policies to manage exposure to fluctuations in the prices of the key raw materials used in operations. The Company manages fluctuations in raw material price through hedging in the form of advance procurement when the prices are perceived to be low and also enters into advance buying contracts as strategic sourcing initiative in order to keep raw material and prices under control to the extent possible.

1

A) Foreign Exchange Risk

The Company is exposed to foreign exchange risk arising from direct transactions in foreign currency and also indirectly through transactions denominated in foreign currency though settled in functional currency(INR), primarily with respect to the US Dollar (USD). Foreign exchange risk arises from future commercial transactions and recognised assets and liabilities denominated in a currency that is not the company’s functional currency (INR).

The risk is measured through a forecast of highly probable foreign currency cash flows. As per the risk management policy, the foreign currency exposure is unhedged.

B) Interest Rate Risk and Sensitivity :

The Company’s exposure to the risk of changes in market interest rates relates primarily to long term debt. Borrowings at variable rates expose the Company to cash flow interest rate risk. With all other variables held constant, the following table demonstrates composition of fixed and floating rate borrowing of the company and impact of floating rate borrowings on company’s profitability.

This amount is spent for promoting health and education.

Amount spent on construction / acquisition of any assets is NIL.

Note: 8.5 Events after the reporting period

The Board of Directors, at its meeting held on 17th May , 2018, has proposed a final dividend of Rs. 0.75/- per equity share of face value Rs.10/- each for the financial year ended March 31, 2018. The proposal is subject to the approval of shareholders at the Annual General Meeting to be held and if approved would result in a cash outflow of approximately Rs. 40.18 Lakh for dividend.

Note: 8.6 Approval of financial statements

The financial statements were approved by the board of directors on May 17, 2018.

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Mar 31, 2016

1. Terms and Rights attached to Equity Shares :

The company has only one class of equity shares having a par value ofRs.10 per share. Each Shareholder of equity share is entitled to one vote per share. The company declares and pays dividend in Indian Rupees. The dividend proposed by the Board of Directors is subject to the approval of the Shareholders in the ensuing Annual General Meeting. Further, the Board of Director may also announce an interim dividend.

In the event of liquidation of the company, the holder of equity shares will be entitled to receive remaining assets of the company after distribution of all preferential amounts in proportion to their shareholdings.

2. Term loan is secured by way of pari passu charges on proposed plant and machinery & office building and other construction at Vapi of the company and equitable mortgage on immovable property situated at Vapi of the company, further secured by hypothecation of stocks, book debts, furniture, fixture and fitting, office equipment situated at Vapi of the company.

3. Term loan is Secured by way of exclusive charge on plant and machinery and building of windmill situated at village Murvel Dist Jamnagar and equitable mortgage on immovable property situated at Vapi of the company, further secured by hypothecation of stocks, book debts, furniture, fixture and fitting, office equipment situated at Vapi of the company on pari passu basis.

4. Term loan is secured by way of exclusive charge on plant and machinery and building of co generation power plant situated at Vapi of the company and equitable mortgage on immovable property situated at Vapi of the company, further secured by hypothecation of stocks, book debts, furniture, fixture and fitting, office equipment situated at Vapi of the company on pari passu basis.

Note d. Vehicle loanRs.19,35,257 included in current maturities of long term borrowings is secured by way of hypothecation of Vehicle.

5. All term loans from banks and from others are further secured by way of shares pledged and personal guarantee of Mr. Gautam D Shah Managing Director of the company and bears rate of interest at base rate plus 2.90 % to 3.50 %.

6. Cash Credit is secured by way of hypothecation of stocks, book debts, furniture, fixture and fitting, office equipment and plant and machinery and equitable mortgage of immovable properties on pari passu basis and personal guarantee of Chairman and Managing Director of the Company. The Cash Credit is repayable on demand and bears interest at the rate of base rate plus 1.5% to 3.25%.

7. Previous year''s figures have been regrouped / reclassified wherever necessary to correspond with the current year''s classification / disclosure.

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Mar 31, 2015

1. Corporate information:

Shree Ajit Pulp And Paper Ltd ('the company) is a public company incorporated in India. Its shares are listed on Bombay Stock Exchange, Vadodara Stock Exchange and Ahmedabad Stock Exchange. The company is engaged in the manufacturing of Kraft Paper (Testliner/Multilayer Testliner) which is mainly used for manufacturing corrugated boxes.

The company owns and operate manufacturing unit located in the state of Gujarat, India at Morai, Vapi. The unit is having an all modern manufacturing facility.

2. Terms and Rights attached to Equity Shares :

The company has only one class of equity shares having a par value of Rs. 10 per share. Each Shareholder of equity share is entitled to one vote per share. The company declares and pays dividend in Indian Rupees. The dividend proposed by the Board of Directors is subject to the approval of the Shareholders in the ensuing Annual General Meeting. Further, the Board of Director may also announce an interim dividend.

In the event of liquidation of the company, the holder of equity shares will be entitled to receive remaining assets of the company after distribution of all preferential amounts in proportion to their shareholdings.

Note a. Term loans are secured by plant and machinery and equitable mortgage on immovable property and hypothecation of stocks, book debts, furniture, fixture and fitting, office equipment situated at Vapi of the company on pari passu basis.

Note b. Term loan of Rs. 1,08,18,004 included in current maturities of long term debts is secured by way of exclusive charge on plant and machinery and building of windmill situated at village Bagasara dist Rajkot and equitable mortgage on immovable property situated at Vapi of the company, further secured by hypothecation of stocks, book debts, furniture, fixture and fitting, office equipment situated at Vapi of the company on pari passu basis.

Note c. Term loan is Secured by way of exclusive charge on plant and machinery and building of windmill situated at village Murvel dist Jamnagar and equitable mortgage on immovable property situated at Vapi of the company, further secured by hypothecation of stocks, book debts, furniture, fixture and fitting, office equipment situated at Vapi ofthe company on pari passu basis.

Note d. Term loan is secured by way of exclusive charge on plant and machinery and building of co generation power plant situated at Vapi ofthe company and equitable mortgage on immovable property situated at Vapi ofthe company, further secured by hypothecation of stocks, book debts , furniture, fixture and fitting, office equipment situated at Vapi of the company on pari passu basis.

Note e. Vehicle loan is secured byway of hypothecation of Vehicle.

Note f. All term loans from banks and from others are further secured by way of personal guarantee of Mr. Gautam D Shah Managing Director ofthe company and bears rate of interest base rate plus 2.90 % to 3.50 %.

3. Deferred tax - Prior year Rs. 1,30,13,580 represents reversal of deferred tax liability created in earlier years in respect of timing differences which reversed during the tax holiday period.

4. Cash Credit is secured by way of hypothecation of stocks, book debts, furniture, fixture and fitting, office equipment and plant and machinery and equitable mortgage of immovable properties on pari passu basis and personal guarantee of Managing Director of the Company. The Cash Credit is repayable on demand and bears interest at the rate of base rate plus 1.5% to 3.25%.

5. The Board of Directors of Shree Samarpan Pulp and Paper Private Limited (a Joint Venture Company ), vide a Board resolution dated 26th July, 2014, have decided to dissolve its Joint Venture Entity, consequentially, the Company has written off its Investment of Rs. 1,00,000 in the said company.

6. Balance with banks in earmarked accounts include Rs. 50,32,861 ( Previous year Rs. 49,54,373) which have restriction.

Note : 7 Related Party disclosure

8. Details of related parties:

Description of relationship Names of related parties

(i) Subsidiary Shree Samrudhi Industrial Papers Private Limited

(ii) Jointly Controlled Entities (JCE) Shree Samrat Pulp and Paper Private Limited

Shree Samarpan Pulp and Paper Pvt Ltd (Refer note 12.2) (company under liquidation)

(iii) Key Management Personnel Mr. Gautam D Shah, Mr. Piyush R Shah, Mrs. Bela G Shah

Note : 9 Contingent Liabilities and Commitments (to the extent not provided for)

Particulars For the year ended For the year ended 31 March, 2015 31 March, 2014

Contingent liabilities

Claims against the company not acknowledged as debt 28,36,620 28,36,620 Demand for Custom duty (Deposit paid Rs. 2,36,963) 62,07,453 -

Future cash outflows in respect of above matters are determinable only on receipt of judgements /decisions pending at various forums /authorities.

Commitments

Estimate amount of contracts remaining to be executed on capital account and 32,84,081 12,46,688 not provided for

Note: 10 Previous year's figures have been regrouped / reclassified wherever necessary to correspond with the current year's classification /disclosure.

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Mar 31, 2014

1. CORPORATE INFORMATION:

Shree Ajit Pulp And Paper Utl is a Kraft Paper manufacturing company established In 109b Is Haled on BSE, VSE andABE have a modern manufacturing facility at Moral, Vapi, GUJARAT State, approximately 170 KM from Mumbai.

2. We are engaged in the manufacturing of TESTLINER /MULTILAYERTESTLINER which Is mainly used for manufaolui lug corrugated boxes. With,in a short span of time tire product has found its own place in the markets all over the country.

3. We are now recognized as one of the leading Krai l Manufacturing Unit in India for our duality and reliable products, W o I vivo a Strong Nationwide Dealers Network Covering the entire country for Solos & Service,

4. Terms and Rights attached to Equity Shares :

The company has only one class of equity shares having a par value ofRs10 per share. Each Shareholder of equity share is entitled to one vote per share. The company declares and pays dividend in Indian Rupees. The dividend proposed by the Board of Directors is subject to the approval of the Shareholders in the ensuing Annual General Meeting. Further, the Board of Director may also announce an interim dividend.

5. In the event of liquidation of the company, the holder of equity shares will be entitled to receive remaining assets of the company after dislribution of all preferential amounts in proportion to their shareholdings.

6. Term loans are secured by plant and machinery and equitable; mortgage on Immovable properly and hypothescsllo i ol stocks, book debts , furniture, fixture and fitting, office equipment situated at Vapl of (ho company on purl passu bnisln.

7 Term loan is secured by way of exclusive charge on plant and machinery and building of windmill situated at village Bagasara district Rajkot and equitable mortgage on immovable property situated at Vapi of the company, furllmr secured by hypothecation of slocks, book debts, furniture, fixture and filling, office equipment situated at Vap i of 11 in company on pari passu basis,

8 Term loan is secured by way of exclusive charge on plant and machinery and building ol windmill situated a I vlllngo Murvel district Jamnagar and equitable morlgage on immovable property situated at Vapi of the company, furlhor secured by hypothecation of stocks, book debts, furniture, fixture and fitting, office equipment situated at Vapi of the company on pari passu basis.

9 Term loan is secured by way of exclusive charge on plant and machinery and building of co generation power plmil situated at Vapi of the company and equitable mortgage on immovable property situated at Vapi of the company, further secured by hypothecation of slocks, book debts, furniture, fixture and filling, office equipment situated ai Vapi of the company on pari passu basis.

10 Vehicle loan is secured by way of hypothecation of vehicle. The loan is repyable in 31 installments, with 14 EMI of rS 105,000, 12 EMI of 78,000 and 5 EMI of 14,000.

11 Vehicle loan is secured by way of hypothecation of vehicle.

12 Vehicle loan is from NBFC and secured by way of hypothecation of vehicle.

All term loan above from banks and from others are further secured by way of personal guarantee of Mr. Gau turn D Shah Managing Director of the company.

13 Term loan balance as on 31.03.2014 of 205,545,715 includes current maturities of long term borrowings of 70,81 9,592 as disclosed in note 9.

14 Deferred tax-Prior year for the year ended 31st March, 2014 amounting 13,013,580 represents reversal of deferred tax liability created in earlier years in respect of timing differences which reversed during the tax holiday period.

15 Cash Credit is secured by way of hypothecation of slocks, book debts, furniture, fixture and fitting, office equipment and plant and machinery and equitable mortgage of immovable properties on pari passu basis and personal guarantee of Managing Director of the Company. The Cash Credit is repayable on demand and carries interest base rate plus 0.fi% to 2,5%.

16. Depreciation on Fixed Assets is provided oi l the Straight Lino Method at the rales nnd In manner prescribed In Schedule XIV to the Companies Act, 1956 except on cellular handsets having gross block value Rs 962,05' depreciation calculated @ 25 % included in office equipments and Waste Paper God own having Gross block value Rs 1,080,551 doprcsolnlloii calculated @ 20 % on SLM basis included in buildings. Depreciation on additions to assets during the year Is provided on pro-rata basis.

17 Addition during the year includes Rs 8,865,994 (Previous year Rs44,83(1) on account of Interest capitalised on Pliant and equipment and Rs 7,852 (Previous year Rs Nil) on Building and RS 1,794,445 (Previous year Rs. Nil.) on account ol foreign exchange fluctuation capitalised on PI an I and Equipments.

18 Previous year figures are shown in italics.

19 Related Party disclosure

30.1 Details of related parties:

Description of relationship Names of related parties

(i) Subsidiary

Shree Samrudhi Industriaf Papers Private Limited

(ii) Jointly Controlled Entities (JCE)

Shree Samrat Pulp and Paper Private Limited Shree Samarpan Pulp and Paper Private Limited

(iii) Key Management Personnel Mr. Gautam D Shah, Mr. Piyush R Shah

20. Interest In Joint Venture :

The company holds ISO % interest in Shree Sairtral Pulp and Paper Private Untiled and in SI tree Snmarpnn Pu Ip and Paper Private Limited, jointly controlled entitles which are involved in manufacturing activity, However, Shree Snnwpnii Pulp and Paper Private Limited has not started any activity till ond of the year under consideration.

21 The company's share of assets, liabilities, income and expenses in the jointly controlled entities for the year ended 31 stMarch as per (heir audited financial statements are as follows;

22 Segment Information

The Company identifies primary segments based on the dominant source, nature of risks and returns and the interna! organisation and management structure. Accordingly, the Company has identified two primary business segments viz Paper and Windmills, Primary Segment Information :

23 Contingent Liabilities and Commitments (to the extent not provided for)

Particulars For the year ended For the year ended 31 March 2014 31 March 2013

Contingent liabilities

Claims against the company not acknowledged as debt 2,836,620 2,836,620

Commitments

Estimate amount of contracts remaining to be executed on capital account and not provided for 1,246,688 88,738,707

24. Derivative Instruments

The year end foreign currency exposures that have not been hedged by a derivative instrument or otherwise are as below:

For the year ended For the year ended Particulars 31 March 2014 31 March 2013

Rs Forex (USD) Rs Forex (USD)

1 Import of Goods and Services 327,704 5,308 - -

25. Sales and other expenses are net off VAT paid/payable.

26. Previous year's figures have been regrouped Z reclassified wherever necessary to correspond with the current year's classification / disclosure.

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Mar 31, 2013

Note : 1 Related Party Disclosure

1.1 List of related parties where control exists and related parties with whom transactions have taken place and relationships:

a) Enterprises Owned by Directors or Major Shareholders

Ajit Steel Centre, Twinkle Investment, Paras Industries, Piyush Export, Ratilal Ujamlal, Kashinda, Shree Samrat Pulp & Paper Pvt Ltd, Shree Samarpan Pulp & Paper Pvt. Ltd

b) Key managerial Personnel

Shri Gautam D Shah, Shri Piyush R Shah

c) Relatives of Key Management Personnel Narmada Sales Corporation

d) Subsidiary Company

Shree Samrudhi Industrial Papers Pvt Ltd

Note : 2 Interest in Joint Venture :

The company hold 50 % interest in Shree Samrat Pulp & Paper Pvt Ltd and Shree Samarpan Pulp & Paper Pvt. Ltd, a jointly controlled entity which is involved in manufacturing activity. First Joint Venture has taken over a running unit for manufacturing of kraft paper during the year. The second one has not started any activity till the end of the year under consideration.

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Mar 31, 2012

1.1 Secured Term Loan from Banks

1 Term Loan outstanding of Rs. 30,000,000 (60,000,000)from Nationalised Bank and carrying rate of Interest base rate plus 3% per annum and repayable in 60 Installments starting from April 2009 of Rs. 2,500,000 each along with interest.

2 Term Loan outstanding of Rs. 34,146,947 (63,342,947)from Nationalised Bank and carrying rate of Interest base rate plus 3% per annum and repayable in 60 Installments starting from Nov. 2009 of Rs. 2,433,000 each along with interest.

3 Term Loan outstanding of Rs. 7,533,086 (8,545,216)from Nationalised Bank and carrying rate of Interest base rate plus 3% per annum and repayable in 60 Installments starting from July 2011 of Rs. 625,000 each along with interest.

4 Term Loan outstanding of Rs. 1,357,500 (NIL) from Nationalised Bank and carrying rate of Interest base rate plus 3% per annum and repayable in 60 Installments starting from Oct 2013 of Rs. 1,375,000 each along with interest.

5 Term Loan outstanding of Rs. NIL (2,025,924) from Nationalised Bank and carrying rate of Interest base rate plus 4% per annum and repayable in 20 quarterly Installments starting from March 2008 of Rs. 1,300,000 each along with interest every month.

All above loans are Secured by Plant & Machinery and Equitable Mortgage on Immovable property and Hypothecation of stocks, book debts, furniture, fixture & fitting, office equipment situated at Vapi of the company.

6 Term Loan outstanding of Rs. 36,819,772 (49,819,660) from Nationalised Bank is Secured by way of first charge on Plant & Machinery and Equitable Mortgage on Immovable property situated at Vapi of the company, Secured by Hypothecation of Plant & Machinery for the Windmill situated on lease land at Village Bagasara, Dist Rajkot. Term loan is Carrying rate of Interest base rate plus 3% per annum and repayable in 60 Installments starting from Feb 2011 of Rs. 1,083,334 each along with interest.

7 Term Loan outstanding of Rs. 48,702,045 (NIL) from Nationalised Bank is Secured by way of first charge on Plant & Machinery and Equitable Mortgage on Immovable property situated at Vapi of the company, Secured by Hypothecation of Plant & Machinery for the Windmill situated on lease land at Village Murvel, Dist Jamnagar. Term loan is Carrying rate of Interest base rate plus 4% per annum and repayable in 60 Installments starting from March 2013 of Rs. 860,000 each along with interest.

8 Vehicle Loan of Rs. 267,033 (460,387)from Nationalised Bank is Secured by way of Hypothecation of Vehicle. The loan is repayable in 36 EMI starting from March 2011 of Rs. 21,942 each.

9 Forklift Loan of Rs. 1,213,127(NIL) from Private Bank is Secured by way of Hypothecation of Forklift. The loan is repayable in 31 MI starting from May 2012 . 14 monthly installments of Rs. 105,000 each, 12 monthly installments of Rs. 78,000 each and 5 monthly installments of Rs. 14,000 each.

2.2 Secured Term Loan from Other

Vehicle Loan of Rs. 2,160,316 (NIL)from NBFC is Secured by way of Hypothecation of Vehicle. The loan is repayable in 36 EMI starting from Jan 2012 of Rs. 113,108 each.

All above secured term loans from Nationalised Bank and from other are secured by way of personal guarantee of Managing Director of the company.

3.1 Cash Credit is Secured by Hypothecation of stocks, book debts, furniture, fixture & fitting, office equipment and Plant and Machinery and equitable mortgage of immovable properties and personal guarantee of Managing Director of the Company. The Cash Credit is repayable on demand and carries interest base rate plus 3% to 4.25%.

4.1 Depreciation on Fixed Assets is provided on the Straight Line Method at the rates and in manner prescribed in Schedule XIV to the Companies Act, 1956 except on cellular handsets having gross block value Rs. 736,654 depreciation calculated @ 25 % and Waste Paper Godown having Gross block value Rs. 463,227 depreciation calculated @ 20 % on SLM basis. Depreciation on additions to assets during the year is provided on pro-rata basis.

5.1 Fixed Deposit with Nationalised Banks

Margin money Deposits with respective carrying amount are subject to first charge to Secure the respective credit facilities

5.2 Unclaimed Dividend Bank Accounts includes amount due to be credited to Investor Education and Protection Fund of Rs. 121,781 on or before 28th Oct 2012.

5.3 Cash and Cash Equivalents as of March 31,2012 and March 31, 2011 includes restricted cash and Bank balances of Rs. 7,542,956 and Rs. 14,031,401 respectively. Other Bank balances maintained by the company with banks comprise of time deposits, which can be withdrawn by the company at any point of time without prior notice or penalty on the principal.

6.1 Depreciation

Depreciation on Fixed Assets is provided on the Straight Line Method at the rates and in manner prescribed in Schedule XIV to the Companies Act, 1956 except on cellular handsets having gross block value Rs. 736,654 depreciation calculated @ 25 % and Waste Paper Godown having Gross block value Rs. 463,227 depreciation calculated @ 20 % on SLM basis. Depreciation on additions to assets during the year is provided on pro-rata basis.

Note : 7 Impairment of Assets

The company has carried out an exercise to ascertain the impairment, if any, in the carrying value of its Fixed Assets. An impairment loss is charged to the Profit and loss account when an asset is identified as impaired. During the year the company has recognized no such impairment loss.

Nature of Provisions

1 The Company has made provision for Gratuity as per provision of Payment of Gratuity Act, 1972.

2 The Company has made provision for Leave encashment as per the rules and regulation of the Company relating to accumulation of leave and its encashment.

3 The Company has made provision for Bonus as per provision of Payment of Bonus Act, 1965.

4 The Company has made provision for Income Tax as per provision of Income Tax Act, 1961.

5 The Company has made provision for Wealth Tax as per provision of Wealth Tax Act, 1957

Note : 8 Related Party Disclosure

8.1 List of related parties where control exists and related parties with whom transactions have taken place and relationships

a) Enterprises Owned by Directors or Major Shareholders

Ajit Steel Centre, Twinkle Investment, Paras Industries, Piyush Export, Ratilal Ujamlal, Kashinda, Shree Samrat Pulp & Paper Pvt Ltd, Shree Samarpan Pulp & Paper Pvt. Ltd

b) Key managerial Personnel

Shri Gautam D Shah, Shri Piyush R Shah

c) Relatives of Key Management Personnel Narmada Sales Corporation

d) Subsidiary Company

Shree Samrudhi Industrial Papers Pvt Ltd

Note : 9 Interest in Joint Venture :

The company hold 50 % interest in Shree Samrat Pulp & Paper Pvt Ltd and Shree Samarpan Pulp & Paper Pvt. Ltd, a jointly controlled entity which is involved in manufacturing activity but not started any activity till the end of the year under consideration. The companyRs.s share of assets, liabilities, income and expenses in the jointly controlled entity for the year ended 31 st March are as follows :

9.1 The Income Tax assessment of the company have been completed up to Assessment Year A.Y.2010-11. The disputed demand outstanding up to the said Assessment Year is Rs. 165,088/-. Based on the decisions of the Appellate authorities and the interpretations of the other relevant provisions, the company has been legally advised that the demand is likely to be deleted and accordingly no provision has been made.

Note : 10

Till the year ended 31 March 2011, the company was using pre -revised Schedule VI to the Companies Act 1956, for preparation and presentation of its financial statements. During the year ended 31st March 2012, the revised Schedule VI notified under the Companies Act 1956, had become applicable to company. The company has reclassified previous year figures to confirm to this year's classification.

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Mar 31, 2011

1. Previous year's figures are re-grouped / re-arranged wherever considered necessary.

2. Contingent Liabilities 2010-2011 2009-2010

(Rs. In 000) (Rs. In '000)

(1) Estimated amount of contracts remaining to be executed 1640.00 Nil on capital account and not provided for, net of advances given

(2) Counter claims by supplier against the company not 2836.62 2836.62 acknowledged as debt

(3) Bank Guarantee 8031.41 6410.00

Note: The Company does not expect any reimbursement in respect of the above contingent liabilities. It is not practicable to estimate the timing of cash outflows any, in respect of matters at 1 to 3 above

b) Nature of Provisions

1. The Company has made provision for Gratuity as per provision of Payment of Gratuity Act, 1972.

2. The Company has made provision for Leave encashment as per the rules and regulation of the Company relating to accumulation of leave and its encashment.

3. The Company has made provision for Bonus as per provision of Payment of Bonus Act, 1965.

4. The Company has made provision for Income Tax as per provision of Income Tax Act, 1961.

5. The Company has made provision for Wealth Tax as per provision of Wealth Tax Act, 1957

4. Impairment of Assets

The company has carried out an exercise to ascertain the impairment, if any, in the carrying value of its Fixed Assets. An impairment loss is charged to the Profit and loss account when an asset is identified as impaired. During the year the company has recognized impairment loss on cellular handsets to the extent of Rs. 204378 and charged to Profit & Loss account.

6. The Market value of GSFC Shares is quoting below the cost price. As this Investment is held on long-term basis, the Directors are of the opinion that the current market price does not reflect true value of Investment and hence the diminution in the value has not been accounted.

7. Related Party Disclosure (As Identified by Management)

(i) Related Party Relationships

(a) Enterprises Owned by Directors or Major Shareholders

(1) Ajit Steel Centre

(2) Ajeet Buildsteel Pvt. Ltd.

(3) Shah Trading Co.

(4) Twinkle Investment

(5) Paras Industries

(6) Piyush Export

(7) Ratilal Ujamlal

(8) Kashida

(9) Shree Samrat Pulp & Paper Pvt. Ltd

(10) Shree Samarpan Pulp & Paper Pvt. Ltd

(b) Key Management Personnel

Shri Gautam D. Shah,

Shri Piyush R. Shah & Shri Gyanprakash H. Gupta

(c) Relatives of Key Management Personnel

Security Product (Brother of the Director is proprietor) Narmada Sales Corporation (Brother of the Director is Partner) Note: In respect of above parties, there is no provision for doubtful debts as on 31st March, 2011 and no amount has been written off or written back during the year in respect of debts due from/to them.

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Mar 31, 2010

1. Previous years figures are re-grouped / re-arranged wherever considered necessary.

2. Contingent Liabilities 2009-2010 2008-2009 (Rs. In 000) (Rs. In 000)

(1) Estimated amount of contracts remaining to be executed on capital Nil 11022.22 account and not provided for, net of advances given

(2) Counter claims by supplier against the company not 2836.62 2836.62 acknowledged as debt

b) Nature of Provisions

1. The Company has made provision for Gratuity as per provision of Payment of Gratuity Act, 1972.

2. The Company has made provision for Leave encashment as per the rules and regulation of the Company relating to accumulation of leave and its encashment.

3. The Company has made provision for Bonus as per provision of Payment of Bonus Act, 1965.

4. The Company has made provision for Income Tax as per provision of Income Tax Act, 1961.

5. The Company has made provision for Wealth Tax as per provision of Wealth Tax Act, 1957

4. Impairment of Assets

The company has carried out an exercise to ascertain the impairment, if any, in the carrying value of its Fixed Assets The exercise has not revealed any impairment in any Fixed assets of the Company.

5. The Market value of GSFC Shares is quoting below the cost price. As this Investment is held on long-term basis, the

Directors are of the opinion that the current market price does not reflect true value of Investment and hence the diminution in the value has not been accounted.

6. Related Party Disclosure (As Identified by Management) (i) Related Party Relationships

(a) Enterprises Owned by Directors or Major Shareholders

(1) M/s Ajit Steel Centre - Vapi (2) M/s Ajeet Buildsteel Pvt. Ltd. - Vapi

(3) M/s Shah Trading Co. - Vapi (4) M/s Twinkle Investment - Mumbai

(5) M/s Paras Industries - Mumbai (6) M/s Piyush Export - Mumbai

(7) M/s Ratilal Ujamlal - Mumbai (8) M/s Kashida - Mumbai

(b) Key Management Personnel

Shri Gautam D. Shah, Shri Piyush R. Shah, Shn P. M. Kanyadi & Shri Gyanprakash H. Gupta

(c) Relatives of Key Management Personnel

Security Product (Brother of the Director is proprietor) Narmada Sales Corporation (Brother of the Director is Partner)

Note: In respect of above parties, there is no provision for doubtful debts as on 31" March, 2010 and no amount has been written off or written back during the year in respect of debts due from/to them.

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Mar 31, 2003

1. Due to Sluggish Stock Market, the Market value of GSFC Shares is quoting below the cost price. As this Investment is held on long-term basis, the Directors are of the opinion that the current market price does not reflect true value of Investment and hence the diminution in the value has not been accounted.

2. Previous years figures are re-grouped / re-arranged wherever considered necessary.

3. Sundry Creditors includes amount due to small scale industrial undertaking a) The parties being small scale / ancillary industrial undertaking to whom amount outstanding for more than 30 days but not overdue: Sood Paper & Allied Chemicals, Prakash Steelage Ltd. b) There were no amounts overdue to small scale and / or ancillary industrial suppliers on account of principal as at the close of the year. c) The above disclosure is based on the information /document available with the company.

4. Related Party Disclosure (As Identified by Management)

(i) Related Party Relationships (a) Where control exists M/s Ajit Steel Centre - Vapi

M/s Ajeet Buildsteel Pvt. Ltd. - Vapi

M/s Security Product - Vapi M/s Shah Trading Co. - Vapi

M/s Twinkle Investment - Mumbai

M/s Paras Industries - Mumbai

M/s Piyush Export - Mumbai

M/s Ratilal Ujamlal - Mumbai

(b) Key Management Personnel

Shri Dhansukhlal G. Shah

Shri Dimple D. Shah

Shri Piyush R. Shah

Shri P. M. Kanyadi

(c) Relatives of Key Management Personnel

Narmada Sales Corporation -(Brother of One of the Directoris Partner)

Note: In respect of above parties, there is no provision for doubtful debts as on 31st March, 2003 and no amount has been written off or written back during the year in respect of debts due from/to them.