Notes to Accounts of Shree Rama Newsprint Ltd.

Mar 31, 2025

n. Provisions, Contingent Liabilities and Contingent Assets:

Provisions are recognised when the Company has a present legal or constructive obligation as a result of past
events, it is probable that an outflow of resources will be required to settle the obligation and the amount
can be reliably estimated. Provisions are measured at the present value of management''s best estimate of the
expenditure required to settle the present obligation at the end of the reporting period.

A restructuring provision is recognised when there is a detailed formal plan for the restructuring which has
raised a valid expectation in those affected. The measurement of a restructuring provision includes only the
direct expenditures arising from the restructuring.

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

Contingent assets are disclosed in the financial statements.

o. Segment Reporting:

Operating segments are reported in a manner consistent with the internal reporting provided to the chief
operating decision-maker. The chief operating decision-maker is responsible for allocating resources and
assessing the performance of the operating segments and has been identified as the Whole time Director of the
Company. The accounting policies adopted for the segment reporting are in line with the accounting policies of
the Company.

p. Leases:

As a lessor

Leases for which the company is a lessor are classified either as a finance or an operating lease. Whenever the
terms of the lease transfer substantially all the risks and rewards incidental to ownership of an underlying asset
to the lessee, the contract is classified as a finance lease. All other leases are classified as operating leases.

For operating leases, rental income is recognized on a straight-line basis over the term of the relevant lease.

q. Non-current assets held for sale and discontinued operations:

The Company classifies non-current assets (or disposal group) as held for sale if their carrying amounts will be
recovered principally through a sale rather than through continuing use. Actions required to complete the sale
should indicate that it is unlikely that significant changes to the sale will be made or that the decision to sell
will be withdrawn. The Company must be committed to the sale expected within one year from the date of
classification.

The criteria for held for sale classification is regarded only when the assets are available for immediate sale in
their present condition, subject only to terms that are usual and customary for sales of such assets, its sale is
highly probable; and it will genuinely be sold, not abandoned. The Company treats the sale of the asset to be

highly probable when:

• The appropriate level of management is committed to a plan to sell the asset,

• An active programme to locate a buyer and complete the plan has been initiated (if applicable),

• The asset is being actively marketed for sale at a price that is reasonable in relation to its current fair value,

• The sale is expected to qualify for recognition as a completed sale within one year from the date of
classification, and

• Actions required to complete the plan indicate that it is unlikely that significant changes to the plan will be
made or that the plan will be withdrawn.

Non-current assets held for sale are measured at the lower of their carrying amount and the fair value less
costs to sell. Assets and liabilities classified as held for sale are presented separately in the balance sheet. An
impairment loss is recognised for any initial or subsequent write-down of the assets to fair value less cost to sell.
A gain is recognised for any subsequent increases in the fair value less cost to sell an asset but not in excess of
the cumulative impairment loss previously recognised, A gain or loss previously not recognised by the date of
sale of the noncurrent assets is recognised on the date of de-recognition. Property, plant and equipment and
intangible assets once classified as held for sale/distribution to owners are not depreciated or amortised.

A discontinued operation qualifies as discontinued operation if it is a component of an entity that either has
been disposed of, or is classified as held for sale, and:

• Represents a separate major line of business or geographical area of operations,

• Is part of a single co-ordinated plan to dispose of a separate major line of business or geographical area of
operations; or

• Is a subsidiary acquired exclusively with a view to resale.

Discontinued operations are excluded from the results of continuing operations. They are presented as a single
amount of profit or loss after tax from discontinued operations in the statement of profit and loss.

r. Government grant/subsidy:

Grants from the government are recognised at their fair value where there is a reasonable assurance that the
grant will be received, and the Company will comply with all attached conditions.

Government grants relating to income are deferred and recognised in the statement of profit or loss over the
period necessary to match them with the costs that they are intended to compensate and presented within
other income.

When the grant relates to an asset, it is recognised as income in equal amounts over the expected useful life of
the related asset.

s. Fair value measurement

The Company measures financial instruments at fair value at each balance sheet date, wherever required.

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction
between market participants at the measurement date.

All assets and liabilities for which fair value is measured or disclosed in the financial statements are categorised
within the fair value hierarchy, described as follows, based on the lowest level input that is significant to the fair
value measurement as a whole:

Level 1 — Quoted (unadjusted) market prices in active markets for identical assets or liabilities

Level 2 — Valuation techniques for which the lowest level input that is significant to the fair value measurement
is directly or indirectly observable

Level 3 — Valuation techniques for which the lowest level input that is significant to the fair value measurement
is unobservable.

Financial assets

A. Classification and initial recognition

Financial assets are recognised in the Company''s statement of financial position when the Company becomes a

party to the contractual provisions of the asset. The Company determines the classification of its financial assets
at initial recognition. The Company classifies the financial assets in the following measurement categories:

• Those to be measured subsequently at fair value (either through profit or loss or through other
comprehensive income)

• Those measured at amortised cost

The classification depends on the entity''s business model for managing the financial assets and the contractual
terms of the cash flows.

For assets measured at fair value, gains and losses will either be recorded in profit or loss or other comprehensive
income.

For investments in equity instruments that are not held for trading, this will depend on whether the Company
has made an irrevocable election at the time of initial recognition to account for the equity investment at fair
value through other comprehensive income (FVOCI).

At initial recognition, the Company measures a financial asset (excluding trade receivables which do not contain
a significant financing component) at its fair value plus, in the case of a financial asset not at fair value through
profit or loss (FVTPL), transaction costs that are directly attributable to the acquisition of the financial asset.
Transaction costs of financial assets carried at fair value through profit or loss are expensed in the statement of
profit and loss.

B. Subsequent measurement

The subsequent measurement of financial assets depends on their classification as follows:

a. Financial assets at fair value through profit or loss (FVPL):

Financial assets at fair value through profit or loss include financial assets held for trading and those
designated upon initial recognition at fair value through profit or loss. Financial assets are classified as held
for trading if they are acquired to sell in the near term. Derivatives are classified as held for trading unless
they are designated as effective hedging instruments.

Financial assets are designated upon initial recognition at fair value through profit or loss when the same
are managed by the Company based on their fair value and their performance is evaluated on a fair value
basis in accordance with the risk management or investment strategy of the Company. Financial assets at
fair value through profit or loss are carried in the statement of financial position at fair value with changes
in fair value recognised in other income in the Statement of Profit and Loss.

b. Financial assets measured at amortised cost

Assets that are held for collection of contractual cash flows, where the assets'' cash flows represent solely
payments of principal and interest, are measured at amortised cost. Interest income from these financial
assets is included in other income in the Statement of Profit and Loss.

c. Fair value through other comprehensive income (FVOCI):

Financial assets are measured at fair value through other comprehensive income (OCI) if these financial
assets are 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.
Movements in the carrying amount are taken through OCI, except for the recognition of impairment
gains or losses, interest revenue and foreign exchange gains and losses which are recognised in profit or
loss. When the financial asset is derecognised, the cumulative gain or loss previously recognised in OCI is
reclassified from equity to profit or loss and recognised in other gains/ (losses). Interest income from these
financial assets is included in other income using the effective interest rate method.

C. Derecognition

A financial asset is derecognised only when

• The Company has transferred the rights to receive cash flows from the financial asset or

• Retains the contractual rights to receive cash flows of the financial asset but assumes a contractual

obligation to pay the cash flows to one or more recipients.

When the Company has transferred an asset, the Company evaluates whether it has transferred substantially all
risks and rewards of ownership of the financial asset. In such cases, the financial asset is derecognised. Where
the Company has not transferred substantially all risks and rewards of ownership of the financial asset, the
financial asset is not derecognised. Where the Company has neither transferred a financial asset nor retains
substantially all risks and rewards of ownership of the financial asset, the financial asset is derecognised if the
Company has not retained control of the financial asset. Where the Company retains control of the financial
asset, the asset continues to be recognised to the extent of continuing involvement in the financial asset.

D. Impairment of financial assets

The Company assesses on a forward forward-looking basis the expected credit losses associated with its assets
carried at amortised cost and FVOCI debt instruments. The impairment methodology applied depends on
whether there has been a significant increase in credit risk.

For trade receivables only, the Company applies a simplified approach required by Ind AS 109 Financial
Instruments, which requires expected lifetime losses to be recognised from initial recognition of receivables.

Investments in Equity Instruments:

The Company with respect to certain equity investments (other than in subsidiaries, associates and joint
ventures) which are not held for trading has made an irrevocable election to present in other comprehensive
income subsequent changes in the fair value of such equity instruments. Such an election is made by the
Company on an instrument-by-instrument basis at the time of initial recognition of such equity investments.
These investments are held for medium or long-term strategic purposes. The Company has chosen to designate
these investments in equity instruments as fair value through other comprehensive income as the management
believes this provides a more meaningful presentation for medium or long-term strategic investments, than
reflecting changes in fair value immediately in the statement of profit and loss.

Financial Liabilities and Equity Instruments:

Classification as debt or equity

Financial liabilities and equity instruments issued by the Company are classified according to the substance of
the contractual arrangements entered into and the definitions of a financial liability and an equity instrument.

Financial liabilities of the Company are contractual obligations to deliver cash or another financial asset to
another entity.

The Company''s financial liabilities include borrowings, lease liability, trade and other payables.

Equity instruments

An equity instrument is any contract that evidences a residual interest in the assets of the Company after
deducting all of its liabilities. Equity instruments are recorded at the proceeds received, net of direct issue costs.

Financial liabilities

Classification, initial recognition, and measurement

Financial liabilities are recognised initially at fair value. Transaction costs that are directly attributable to the
issue of financial liabilities (other than financial liabilities carried at fair value through profit or loss) are deducted
from the fair value measured on initial recognition of financial liability. Financial liabilities are subsequently
measured at amortised cost.

Subsequent measurement

After initial recognition, financial liabilities are subsequently measured at amortised cost using the effective
interest rate (''EIR'') method. Gains and losses are recognised in profit or loss when the liabilities are derecognised.

De-recognition of financial liability

A financial liability is derecognised when the obligation under the liability is discharged, cancelled, or expires.

The difference between the carrying amount of a financial liability that has been extinguished or transferred
to another party and the consideration paid, including any non-cash assets transferred or liabilities assumed, is
recognised in profit or loss as other income or finance cost.

Offsetting Financial Instruments

Financial assets and financial liabilities are offset, and the net amount reported in the statement of financial
position if, and only if, there is a currently enforceable legal right to offset the recognised amounts and there is
an intention to settle on a net basis, or to realise the assets and settle the liabilities simultaneously. The legally
enforceable right must not be contingent on future events and must be enforceable in the normal course of
business and in the event of default, insolvency or bankruptcy of the Company or the counterparty.

Contributed equity

Equity shares are classified as equity. Incremental costs directly attributable to the issue of new shares are
shown in equity as a deduction, net of tax, from the proceeds.

t. Employee Benefits:

(i) Short-term obligations

Liabilities for wages and salaries, including non-monetary benefits that are expected to be settled wholly
within 12 months after the end of the period in which the employees render the related service are
recognised in respect of employees'' services up to the end of the reporting period and are measured at
the amounts expected to be paid when the liabilities are settled.

(ii) Other long-term employee benefit obligations

The liabilities for earned leave that are not expected to be settled wholly within 12 months are measured
as the present value of expected future payments to be made in respect of services provided by employees
up to the end of the reporting period using the projected unit credit method. The benefits are discounted
using the market yields at the end of the reporting period that have terms approximating the terms of
the related obligation. Remeasurements as a result of experience adjustments and changes in actuarial
assumptions are recognised in the Statement of Profit and Loss.

(iii) Post-employment obligations

The Company operates the following post-employment schemes:

(a) Defined benefit plans such as gratuity; and

(b) Defined contribution plans such as provident fund & employees'' state insurance.

Gratuity obligations:

The liability recognised in the balance sheet in respect of defined benefit gratuity plans is the present value of
the defined benefit obligation at the end of the reporting period less the fair value of plan assets. The defined
benefit obligation is calculated annually by actuaries using the projected unit credit method.

The present value of the defined benefit obligation is determined by discounting the estimated future cash
outflows by reference to market yields at the end of the reporting period on government bonds that have terms
approximating the terms of the related obligation.

The net interest cost is calculated by applying the discount rate to the net balance of the defined benefit
obligation and the fair value of plan assets. This cost is included in employee benefit expense in the Statement
of Profit and Loss.

Remeasurement gains and losses arising from experience adjustments and changes in actuarial assumptions
are recognised in the period in which they occur, directly in other comprehensive income. They are included in
retained earnings in the statement of changes in equity and the balance sheet.

Defined Contribution Plans:

Defined Contribution Plans such as Provident Fund and Employees''State Insurance are charged to the Statement

of Profit and Loss as incurred. The Company has no further payment obligations once the contributions have
been paid.

u. Earnings per equity share:

Basic earnings per share is calculated by dividing the net profit or loss for the period/year attributable to
equity shareholders by the weighted average number of equity shares outstanding during the period/year.
The weighted average number of equity shares outstanding during the period/year is adjusted for events of
bonus issue; bonus element in a rights issue to existing shareholder; split; and reserve share split (consolidated
of share).

For the purpose of calculating diluted earnings per share, the net profit or loss for the period/year attributable
to equity shareholders and the weighted average number of shares outstanding during the period/year, are
adjusted for the effects of all dilutive potential equity shares. The dilutive potential equity shares are adjusted for
the proceeds receivable had the equity shares been actually issued at fair value (i.e., the average market value
of the outstanding equity shares). Dilutive potential equity shares are deemed converted as of the beginning of
the period unless issued at a later date. Dilutive potential equity shares are determined independently for each
period presented.

The number of equity shares and potentially dilutive equity shares are adjusted retrospectively for all periods
presented for any share splits and bonus shares issues including for changes effected prior to the approval of
the financial statements by the Board of Directors.

Defined Benefit Plans

The Company offers the following employee benefit schemes to its employees.

Gratuity: The Company has a defined benefit gratuity plan. Every employee who has completed five years or more
of service gets a gratuity on departure at 15 days salary (last drawn salary) for each completed year of service. The
scheme is funded.

Risk Exposure: The defined benefit plans exposes the Company to actuarial risk, such as longevity risk, interest
rate risk and market (investment) risk. The Company actively monitors how the duration and the expected yield of
investments are matching the expected cash outflows arising from the employee benefit obligations. The Company
has not changed the processes used to manage its risks from previous periods and monitors such obligation on
regular basis.

Principal actuarial assumptions

Principal actuarial assumptions used to determine the present value of the defined benefit obligation are as
follows:

Fair value hierarchy

Level 1: Level 1 hierarchy includes financial instruments measured using quoted prices. This includes listed equity
instruments and mutual funds that have quoted price. The fair value of all equity instruments which are traded in
the stock exchanges is valued using the closing price as at the reporting period. The mutual funds are valued using
the closing NAV and listed equity instruments are being valued at the closing prices on recognised stock exchange.

Level 2: The fair value of financial instruments that are not traded in an active market (for example, traded bonds,
over-the counter derivatives) is determined using valuation techniques which maximize the use of observable
market data and rely as little as possible on entity-specific estimates. If all significant inputs required to fair value an
instrument are observable, the instrument is included in level 2.

Level 3: If one or more of the significant inputs is not based on observable market data, the instrument is included
in level 3. This is the case for unlisted equity securities, contingent consideration and indemnification asset included
in level 3.

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

Note - 31 : FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES

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

The Company''s financial risk management policy is set by the management. Market risk is the risk of loss of future
earnings, fair values or future cash flows that may result from a change in the price of a financial instrument. The

value of a financial instrument may change as a result of changes in the interest rates, foreign currency exchange
rates, equity prices and other market changes that affect market risk sensitive instruments. The Company manages
market risk which evaluates and exercises independent control over the entire process of market risk management.
The management recommend risk management objectives and policies, which are approved by Senior Management
and the Audit Committee.

a. Credit risk

Credit risk is the risk of financial loss to the Company if a customer or counterparty to a financial instrument
fails to meet its contractual obligations, and arises principally from the Company''s receivables from customers.
Credit risk arises from cash held with banks as well as credit exposure to clients, including outstanding accounts
receivable. The maximum exposure to credit risk is equal to the carrying value of the financial assets. The objective
of managing counterparty credit risk is to prevent losses in financial assets. The Company assesses the credit quality
of the counterparties, taking into account their financial position, past experience and other factors. The Company
establishes an allowance for doubtful debts and impairment that represents its estimate of incurred losses in respect
of trade and other receivables and investments.

The Company''s exposure to credit risk is influenced mainly by the individual characteristics of each customer.
The demographics of the customer, including the default risk of the industry and country in which the customer
operates, also has an influence on credit risk assessment. Credit risk is managed through continuously monitoring
the creditworthiness of customers to which the Company grants credit terms in the normal course of business. An
impairment analysis is performed at each reporting date on an individual basis for major customers. The Company
also hold security deposits for outstanding trade receivables. The history of trade receivables shows a negligible
provision for bad and doubtful debts.

b. Liquidity risk

Liquidity risk is the risk that the Company will not be able to meet its financial obligations as they become due. The
Company manages its liquidity risk by ensuring, as far as possible, that it will always have sufficient liquidity to meet
its liabilities when due.

c. Market risk

Market risk is the risk of loss of future earnings, fair values or future cash flows that may result from adverse changes
in market rates and prices (such as interest rates, foreign currency exchange rates and commodity prices) or in the
price of market risk-sensitive instruments as a result of such adverse changes in market rates and prices. Market risk
is attributable to all market risk-sensitive financial instruments and all short term and long-term debt. The Company
is exposed to market risk primarily related to foreign exchange rate risk, interest rate risk and the market value of its
investments. Thus, the Company''s exposure to market risk is a function of investing and borrowing activities.

d. Foreign exchange risk

Foreign currency risk is the risk that the fair value or future cash flows of an exposure will fluctuate because of
changes in foreign exchange rates.

Interest rate risk

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of
changes in market interest rates. However the company''s exposure to foreign currency loan is of fixed interest rate.

The Company''s investments in term deposits (i.e., margin money) with banks are for short durations, and therefore
do not expose the Company to significant interest rates risk.

(i) Interest rate risk exposure

The exposure of the company''s borrowing to interest rate changes at the end of the reporting period are as
follows:

32 Capital Management:

The Company''s policy is to maintain a strong capital base so as to maintain investor, creditor and market confidence
and to sustain future development of the business. The Company monitors the return on capital as well as level of
dividend on its equity shares. The Company''s objective when managing capital is to maintain an optimal structure
so as to maximize shareholder''s value.

In order to achieve this overall objective, the Company''s capital management, amongst other things, aims to ensure
that it meets financial covenants attached to the borrowings that define capital structure requirements. Breaches in
meeting the financial covenants would permit the bank to immediately call loans and borrowings. There have been
no breaches in the financial covenants of any long term borrowing in the current period.

"No changes were made in the objectives, policies or processes for managing capital during the current period.

a) Risk Management:

The Company aim to manages its capital efficiently so as to safeguard its ability to continue as a going concern and
to optimise returns to our shareholders and benefits for other stakeholders and maintain an optimal capital struc¬
ture to reduce the cost of capital.

The capital structure of the Company is based on management''s judgement of the appropriate balance of key el¬
ements in order to meet its strategic and day-to-day needs. We consider the amount of capital in proportion to
risk and manage the capital structure in light of changes in economic conditions and the risk characteristics of the
underlying assets. In order to maintain or adjust the capital structure, the Company may adjust the amount of divi¬
dends paid to shareholders, return capital to shareholders, issue new shares or sell assets to reduce debt.

The Company''s policy is to maintain a stable and strong capital structure with a focus on total equity so as to main¬
tain 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.

b) Dividends:

The Company has not recommended any dividend for the financial year ended March 31, 2025

33 During the financial year 2022-23, the Paper Division of the Company had been classified as a discontinued op¬
eration and approval of the shareholders was obtained on 26th September 2023 for disposal of all the assets of
Paper Division. The plant and machinery and liabilities related to the Paper Division are presented separately as
discontinued operations. For better realisation of the value of the assets, the Company is disposing these assets
on a piecemeal basis and remains committed to the disposal of the remaining assets of the paper division.

Considering the response during the sale of assets and time being taken, during the quarter ended December
31, 2024, the Company has reassessed the fair valuation of the assets forming part of the discontinued oper¬
ations as per the requirements of Ind AS 105 - Non-current Assets held for sale and discontinued operations
based on the valuer report and accordingly, recognised an further impairment loss of Rs.6,956.48 lakhs.

i) The Term Loans are secured by first charge ranking pari passu over all the present and future moveable and
immovable property, plant and equipments of the Company and second pari passu charge on all present and
future current assets.

ii) • Non convertible Zero Coupon Secured Debenture were issued to Bank of India and Punjab National Bank and
are Originally outstanding as at March 31, 2025 of Rs 2362.50 lakhs and Rs 1874.00 lakhs respectively and are
pertaining to discontinued operations. The same will be payable in 3 instalment commencing from August 25.

• Non convertible Zero Coupon secured debenture holders are having first charge on future property, plant and
equipments of the Company and pari passu second charge on existing property, plant and equipments of the
Company.

• Non convertible Zero Coupon Unsecured Debenture presently hold by Riddhi Siddhi Gluco Biols Limited are
outstanding as at March 31, 2025 of Rs 3000.00 lakhs, which is also pertaining to discontinued operations. The
same will be payable in 3 instalment commencing from August 2025.

iii) There is no defulat on repayment of loan or payment of Interest.

iv) Financial Covenants for Term Loan from ICICI Bank Ltd.:

Financial covenants to be monitored annually on the basis of audited standalone financial statements. As per
the terms and condition of the bank, Total Debt/Total Net Worth of the company should not be more than 5 :

1. The company has complied with this covenants throughout the reporting period. As at March 31, 2025 the
Total Debt / Total Net worth of the company is 0.250:1 (March 31,2024 was 0.216 : 1)

v) Year wise repayment schedule: - There is no loan outstanding pertaining to Continuing operation, however the
Term Loan from ICICI bank is pertaining to discontinued operations and carries interest @ 9.56% p.a. and the
outstanding amount as at 31/03/2025 is Rs 931.86 lakhs, which will be repaid by Dec. 2025 in equal quarterly
installment of Rs 310.62 lakhs.

34 The Paper division of the company has been identified as Discontinued operations and accordingly, its op¬
erations are presented in accordance with Ind AS 105 and related assets and liabilities are shown separately
from assets/liabilities pertaining to continuing operations. Since the paper division has been discontinued it
is no longer an operating segment and the water bottle division is the only single operating segment as on
31/03/2025, accordingly segment reporting is not applicable in accordance with Ind AS 108.

35 The Company has incurred a total comprehensive loss of ?10,627.75 lakhs for the year ended March 31, 2025.
As at that date, the Company''s current liabilities (pertaining to continuing operations) exceeded its current
assets (pertaining to continuing operations) by ?6,326.85 lakhs. These conditions indicate the existence of a
material uncertainty that may cast significant doubt on the Company''s ability to continue as a going concern
and, therefore, the Company may be unable to realise its assets and discharge its liabilities in the normal course
of business.

Despite the above, the financial results have been prepared on a going-concern basis, based on management''s
assessment of the Company''s future operations and plans. The Company believes that management is in the
process of disposal of certain non-core assets and exploring funding options to strengthen the working capital
position, if required.

The management of the Company believes that these plans, once executed, enable the Company to meet its
obligations as they fall due and continue its operations for the foreseeable future. Accordingly, the financial
statements do not include any adjustments relating to the recoverability and classification of recorded asset
amounts or to the amounts and classification of liabilities that may be necessary if the Company is unable to
continue as a going concern.

36 Corporate Social Responsibility (CSR): The Company has not earned net profit in the three immediately
preceding financial years, therefore, there was no amount as per section 135 of the Act which was required to
be spent on CSR activities in the current financial period by the Company.

37 Recent pronouncement to Ind AS.

Ministry of Corporate Affairs ("MCA") notifies new standards or amendments to the existing standards under
Companies (Indian Accounting Standards) Rules as issued from time to time. During the year ended March
31, 2025, MCA has not notified any new standards or amendments to the existing standards applicable to the
Company.

38. Additional regulatory information required by Schedule III of the Act:

(a) Title deeds of immovable properties not held in name of the company

The title deeds of all the immovable properties (other than properties where the Company is the lessee and
the lease agreements are duly executed in favor of the lessee), as disclosed in notes to the financial statements,
are held in the name of the Company. The Company has on May 15, 2025, received an Order dated May 1, 2025
from Collector Surat asking Company to surrender 121302 Square Meter of Land due to violation of Collector
order Dated 20.11.1992 regarding development of Gouchar land for the Village but mentioning in the order
that it has right of appeal to Secretary (Dispute) Revenue Department, Government of Gujarat accordingly the
company has filed the appeal before the authority against the above said order.

(b) Valuation of PP&E and Intangible Assets:

Company has reassessed the fair valuation of the assets forming part of the discontinued operations as per the
requirements of Ind AS 105 - Non-current Assets held for sale and discontinued operations based on the valuer
report and accordingly, recognised an further impairment loss of Rs.6,956.48 lakhs.

(c) Loans or Advances in the nautre of Loans granted to Promoters, Directors, Key Managerial Personnel
and Related Parties

The Company has not provided or given Loans or Advances in the nautre of Loans granted to Promoters, Direc¬
tors, Key Managerial Personnel and Related Parties either severally or jointly with any other person.

(d) Details of benami property held:

No benami property is held by the Company accordingly no proceedings are pending against the Company for
holding benami property under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and Rules made
thereunder.

(e) Borrowing secured against current assets:

The Company has availed term borrowing from the bank secured by a first pari-passu charge on the non-cur¬
rent assets of the Company and a second pari-passu charge on the current assets of the Company. The terms of
the borrowing arrangement do not require the Company to submit quarterly returns or statements of current
assets to the banks

(f) Willful defaulter:

The Company has not been declared willful defaulter by any bank or financial institution or government or any
government authority.

(g) Relationship with struck off companies:

The Company has no transactions with the companies struck off under the Act or Companies Act, 1956.

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

There are no charges or satisfaction which are yet to be registered with the Registrar of Companies beyond the
statutory period.

(i) Compliance with number of layers of companies:

The Company has complied with the number of layers prescribed under the Act.

Notes:

1. Earning for debt service = Net profit after taxes Non-cash operating expenses like depreciation and other
amortisations Interest other adjustments like loss on sale of PP&E etc.

2. Working capital = Current assets minus Current liabilities.

3. Capital employed = Tangible net worth Total debt Deferred tax liability.

(k) Compliance with approved scheme(s) of arrangements:

The Company has not entered into any scheme of arrangement which has an accounting impact on current or
previous financial year.

(l) Utilisation of borrowed funds and share premium:

"(a) The Company has 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 indirectlylend 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."

"(b) The Company has not received any fund from any person(s) or entity(ies), including foreign entities (Fund¬
ing 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."

(m) Undisclosed income:

There is no income surrendered or disclosed as income during the current or previous year in the tax as
sessments under the Income Tax Act, 1961, that has not been recorded in the books of account.

(n) Details of crypto currency or virtual currency:

The Company has not traded or invested in crypto currency or virtual currency during the current or previous
year.

Exposure to gain/loss on derivative instruments offset to some extent the exposure to foreign currency risk,
interest rate risk as disclosed above.

39. Figures for the previous year have been regrouped / rearranged, wherever necessary, to conform to
current year''s classification.

As per our attached report of even date For and on behalf of Board of

Directors of

For Batliboi & Purohit Shree Rama Newsprint Limited

Chartered Accountants
ICAI FRN No.101048W

Parag Hangekar Siddharth G. Chowdhary K. L. Chandak

Partner Whole-Time Director Director

Membership No. 110096 DIN No. 01798350 DIN No. 00013487

Mukesh Samdaria

Place : Mumbai Chief Financial Officer

Date : 29/05/2025

Place : Ahmedabad
Date : 29/05/2025

---

Mar 31, 2024

n. Provisions, Contingent Liabilities and Contingent Assets:

Provisions are recognised when the Company has a present legal or constructive obligation as a result of past events, it is probable that an outflow of resources will be required to settle the obligation and the amount can be reliably estimated. Provisions are measured at the present value of management''s best estimate of the expenditure required to settle the present obligation at the end of the reporting period.

A restructuring provision is recognised when there is a detailed formal plan for the restructuring which has raised a valid expectation in those affected. The measurement of a restructuring provision includes only the direct expenditures arising from the restructuring.

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

Contingent assets are disclosed in the financial statements..

o. Segment Reporting:

Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating decision-maker. The chief operating decision-maker is responsible for allocating resources and assessing the performance of the operating segments and has been identified as the Whole time Director of the Company. The accounting policies adopted for the segment reporting are in line with the accounting policies of the Company.

p. Leases:

As a lessor

Leases for which the company is a lessor are classified either as a finance or an operating lease. Whenever the terms of the lease transfer substantially all the risks and rewards incidental to ownership of an underlying asset to the lessee, the contract is classified as a finance lease. All other leases are classified as operating leases.

For operating leases, rental income is recognized on a straight-line basis over the term of the relevant lease.

q. Non-current assets held for sale and discontinued operations:

The Company classifies non-current assets (or disposal group) as held for sale if their carrying amounts will be recovered principally through a sale rather than through continuing use. Actions required to complete the sale should indicate that it is unlikely that significant changes to the sale will be made or that the decision to sell will be withdrawn. The Company must be committed to the sale expected within one year from the date of classification.

The criteria for held for sale classification is regarded only when the assets are available for immediate sale in their present condition, subject only to terms that are usual and customary for sales of such assets, its sale is highly probable; and it will genuinely be sold, not abandoned. The Company treats the sale of the asset to be highly probable when:

• The appropriate level of management is committed to a plan to sell the asset,

• An active programme to locate a buyer and complete the plan has been initiated (if applicable),

• The asset is being actively marketed for sale at a price that is reasonable in relation to its current fair value,

• The sale is expected to qualify for recognition as a completed sale within one year from the date of classification, and

• Actions required to complete the plan indicate that it is unlikely that significant changes to the plan will be made or that the plan will be withdrawn.

Non-current assets held for sale are measured at the lower of their carrying amount and the fair value less costs to sell. Assets and liabilities classified as held for sale are presented separately in the balance sheet. An impairment loss is recognised for any initial or subsequent write-down of the assets to fair value less cost to sell. A gain is recognised for any subsequent increases in the fair value less cost to sell an asset but not in excess of the cumulative impairment loss previously recognised, A gain or loss previously not recognised by the date of sale of the noncurrent assets is recognised on the date of de-recognition. Property, plant and equipment and intangible assets once classified as held for sale/distribution to owners are not depreciated or amortised.

A discontinued operation qualifies as discontinued operation if it is a component of an entity that either has been disposed of, or is classified as held for sale, and:

• Represents a separate major line of business or geographical area of operations,

• Is part of a single co-ordinated plan to dispose of a separate major line of business or geographical area of operations; or

• Is a subsidiary acquired exclusively with a view to resale.

Discontinued operations are excluded from the results of continuing operations. They are presented as a single amount of profit or loss after tax from discontinued operations in the statement of profit and loss.

r. Government grant/subsidy:

Grants from the government are recognised at their fair value where there is a reasonable assurance that the grant will be received, and the Company will comply with all attached conditions.

Government grants relating to income are deferred and recognised in the statement of profit or loss over the period necessary to match them with the costs that they are intended to compensate and presented within other income.

When the grant relates to an asset, it is recognised as income in equal amounts over the expected useful life of the related asset.

s. Fair value measurement

The Company measures financial instruments at fair value at each balance sheet date, wherever required.

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.

All assets and liabilities for which fair value is measured or disclosed in the financial statements are categorised within the fair value hierarchy, described as follows, based on the lowest level input that is significant to the fair value measurement as a whole:

Level 1 — Quoted (unadjusted) market prices in active markets for identical assets or liabilities

Level 2 — Valuation techniques for which the lowest level input that is significant to the fair value

measurement is directly or indirectly observable

forming part of the financial statements for the year ended March 31, 2024

Level 3 — Valuation techniques for which the lowest level input that is significant to the fair value measurement is unobservable.

Financial assets

A. Classification and initial recognition

Financial assets are recognised in the Company''s statement of financial position when the Company becomes a party to the contractual provisions of the asset. The Company determines the classification of its financial assets at initial recognition. The Company classifies the financial assets in the following measurement categories:

• Those to be measured subsequently at fair value (either through profit or loss or through other comprehensive income)

• Those measured at amortised cost

The classification depends on the entity''s business model for managing the financial assets and the contractual terms of the cash flows.

For assets measured at fair value, gains and losses will either be recorded in profit or loss or other comprehensive income.

For investments in equity instruments that are not held for trading, this will depend on whether the Company has made an irrevocable election at the time of initial recognition to account for the equity investment at fair value through other comprehensive income (FVOCI).

At initial recognition, the Company measures a financial asset (excluding trade receivables which do not contain a significant financing component) at its fair value plus, in the case of a financial asset not at fair value through profit or loss (FVTPL), transaction costs that are directly attributable to the acquisition of the financial asset. Transaction costs of financial assets carried at fair value through profit or loss are expensed in the statement of profit and loss.

B. Subsequent measurement

The subsequent measurement of financial assets depends on their classification as follows:

a. Financial assets at fair value through profit or loss (FVPL):

Financial assets at fair value through profit or loss include financial assets held for trading and those designated upon initial recognition at fair value through profit or loss. Financial assets are classified as held for trading if they are acquired to sell in the near term. Derivatives are classified as held for trading unless they are designated as effective hedging instruments.

Financial assets are designated upon initial recognition at fair value through profit or loss when the same are managed by the Company based on their fair value and their performance is evaluated on a fair value basis in accordance with the risk management or investment strategy of the Company. Financial assets at fair value through profit or loss are carried in the statement of financial position at fair value with changes in fair value recognised in other income in the Statement of Profit and Loss.

b. Financial assets measured at amortised cost:

Assets that are held for collection of contractual cash flows, where the assets'' cash flows represent solely payments of principal and interest, are measured at amortised cost. Interest income from these financial assets is included in other income in the Statement of Profit and Loss.

c. Fair value through other comprehensive income (FVOCI):

Financial assets are measured at fair value through other comprehensive income (OCI) if these financial assets are 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. Movements in the carrying amount are taken through OCI, except for the recognition of impairment gains or losses, interest revenue and foreign exchange gains and losses which are recognised in profit or loss. When the financial asset is derecognised, the cumulative gain or loss previously recognised in OCI is

reclassified from equity to profit or loss and recognised in other gains/ (losses). Interest income from these financial assets is included in other income using the effective interest rate method.

C. Derecognition

A financial asset is derecognised only when

• The Company has transferred the rights to receive cash flows from the financial asset or

• Retains the contractual rights to receive cash flows of the financial asset but assumes a contractual obligation to pay the cash flows to one or more recipients.

When the Company has transferred an asset, the Company evaluates whether it has transferred substantially all risks and rewards of ownership of the financial asset. In such cases, the financial asset is derecognised. Where the Company has not transferred substantially all risks and rewards of ownership of the financial asset, the financial asset is not derecognised. Where the Company has neither transferred a financial asset nor retains substantially all risks and rewards of ownership of the financial asset, the financial asset is derecognised if the Company has not retained control of the financial asset. Where the Company retains control of the financial asset, the asset continues to be recognised to the extent of continuing involvement in the financial asset.

D. Impairment of financial assets

The Company assesses on a forward forward-looking basis the expected credit losses associated with its assets carried at amortised cost and FVOCI debt instruments. The impairment methodology applied depends on whether there has been a significant increase in credit risk.

For trade receivables only, the Company applies a simplified approach required by Ind AS 109 Financial Instruments, which requires expected lifetime losses to be recognised from initial recognition of receivables.

Investments in Equity Instruments:

The Company with respect to certain equity investments (other than in subsidiaries, associates and joint ventures) which are not held for trading has made an irrevocable election to present in other comprehensive income subsequent changes in the fair value of such equity instruments. Such an election is made by the Company on an instrument-by-instrument basis at the time of initial recognition of such equity investments. These investments are held for medium or long-term strategic purposes. The Company has chosen to designate these investments in equity instruments as fair value through other comprehensive income as the management believes this provides a more meaningful presentation for medium or long-term strategic investments, than reflecting changes in fair value immediately in the statement of profit and loss.

Financial Liabilities and Equity Instruments:

Classification as debt or equity

Financial liabilities and equity instruments issued by the Company are classified according to the substance of the contractual arrangements entered into and the definitions of a financial liability and an equity instrument.

Financial liabilities of the Company are contractual obligations to deliver cash or another financial asset to another entity.

The Company''s financial liabilities include borrowings, lease liability, trade and other payables.

Equity instruments

An equity instrument is any contract that evidences a residual interest in the assets of the Company after deducting all of its liabilities. Equity instruments are recorded at the proceeds received, net of direct issue costs.

Financial liabilities

Classification, initial recognition, and measurement

Financial liabilities are recognised initially at fair value. Transaction costs that are directly attributable to the issue of financial liabilities (other than financial liabilities carried at fair value through profit or loss) are deducted

from the fair value measured on initial recognition of financial liability. Financial liabilities are subsequently measured at amortised cost.

Subsequent measurement

After initial recognition, financial liabilities are subsequently measured at amortised cost using the effective interest rate (''EIR'') method. Gains and losses are recognised in profit or loss when the liabilities are derecognised.

De-recognition of financial liability

A financial liability is derecognised when the obligation under the liability is discharged, cancelled, or expires. The difference between the carrying amount of a financial liability that has been extinguished or transferred to another party and the consideration paid, including any non-cash assets transferred or liabilities assumed, is recognised in profit or loss as other income or finance cost.

Offsetting Financial Instruments

Financial assets and financial liabilities are offset, and the net amount reported in the statement of financial position if, and only if, there is a currently enforceable legal right to offset the recognised amounts and there is an intention to settle on a net basis, or to realise the assets and settle the liabilities simultaneously. The legally enforceable right must not be contingent on future events and must be enforceable in the normal course of business and in the event of default, insolvency or bankruptcy of the Company or the counterparty.

Contributed equity

Equity shares are classified as equity. Incremental costs directly attributable to the issue of new shares are shown in equity as a deduction, net of tax, from the proceeds.

t. Employee Benefits:

(i) Short-term obligations

Liabilities for wages and salaries, including non-monetary benefits that are expected to be settled wholly within 12 months after the end of the period in which the employees render the related service are recognised in respect of employees'' services up to the end of the reporting period and are measured at the amounts expected to be paid when the liabilities are settled.

(ii) Other long-term employee benefit obligations

The liabilities for earned leave that are not expected to be settled wholly within 12 months are measured as the present value of expected future payments to be made in respect of services provided by employees up to the end of the reporting period using the projected unit credit method. The benefits are discounted using the market yields at the end of the reporting period that have terms approximating the terms of the related obligation. Remeasurements as a result of experience adjustments and changes in actuarial assumptions are recognised in the Statement of Profit and Loss.

(iii) Post-employment obligations

The Company operates the following post-employment schemes:

(a) Defined benefit plans such as gratuity; and

(b) Defined contribution plans such as provident fund & employees'' state insurance.

Gratuity obligations:

The liability recognised in the balance sheet in respect of defined benefit gratuity plans is the present value of the defined benefit obligation at the end of the reporting period less the fair value of plan assets. The defined benefit obligation is calculated annually by actuaries using the projected unit credit method.

The present value of the defined benefit obligation is determined by discounting the estimated future cash outflows by reference to market yields at the end of the reporting period on government bonds that have terms approximating the terms of the related obligation.

The net interest cost is calculated by applying the discount rate to the net balance of the defined benefit obligation and the fair value of plan assets. This cost is included in employee benefit expense in the Statement of Profit and Loss.

Remeasurement gains and losses arising from experience adjustments and changes in actuarial assumptions are recognised in the period in which they occur, directly in other comprehensive income. They are included in retained earnings in the statement of changes in equity and the balance sheet.

Defined Contribution Plans:

Defined Contribution Plans such as Provident Fund and Employees''State Insurance are charged to the Statement of Profit and Loss as incurred. The Company has no further payment obligations once the contributions have been paid.

u. Earnings per equity share:

Basic earnings per share is calculated by dividing the net profit or loss for the period/year attributable to equity shareholders by the weighted average number of equity shares outstanding during the period/year. The weighted average number of equity shares outstanding during the period/year is adjusted for events of bonus issue; bonus element in a rights issue to existing shareholder; split; and reserve share split (consolidated of share)

For the purpose of calculating diluted earnings per share, the net profit or loss for the period/year attributable to equity shareholders and the weighted average number of shares outstanding during the period/year, are adjusted for the effects of all dilutive potential equity shares. The dilutive potential equity shares are adjusted for the proceeds receivable had the equity shares been actually issued at fair value (i.e., the average market value of the outstanding equity shares). Dilutive potential equity shares are deemed converted as of the beginning of the period unless issued at a later date. Dilutive potential equity shares are determined independently for each period presented.

The number of equity shares and potentially dilutive equity shares are adjusted retrospectively for all periods presented for any share splits and bonus shares issues including for changes effected prior to the approval of the financial statements by the Board of Directors.

Notes :

A) The Term Loans are secured by first charge ranking pari passu over all the present and future moveable and immovable property, plant and equipments of the Company and second pari passu charge on all present and future current assets.

B) Non convertible secured debenture holders are having first charge on future property, plant and equipments of the Company and pari passu second charge on existing property, plant and equipments of the Company.

C) There is no defulat on repayment of loan or payment of Interest. The Interest on ICD was not provided and paid to Holding Company for the year ended March 24 as the same is waived by the Holding Company.

D) Financial Covenants for Term Loan from ICICI Bank Ltd.:

Financial covenants to be monitored annually on the basis of audited stand alone financial statements. As per the terms and condition of the bank, Total Debt/Total Net Worth of the company should not be more than 5 : 1. The company has complied with this covenants througout the reporting period. As at March 31, 2024 the Total Debt / Total Net worth of the company is 4.83:1 (March 31, 2023 was 3.25 : 1)

E) During the financial year ended March 31, 2023, the Company issued 3,50,00,000, 10% Non-Convertible Cumulative Non-Participating Redeemable Preference Shares (NCRPS) having Face Value of Rs 100/- each to Riddhi Siddhi Gluco Biols Limited (Holding Company) for a cash consideration amounting to Rs 35,000/- lakhs

F) Year wise repayment schedule: - There is no loan outstanding pertaining to Continuing operation, however the Term Loan from ICICI bank is pertaining to discontinued operations and carries interest @ 9.56% p.a. and the outstanding amount will be repaid by Dec. 25 in equal quartly installmengt of Rs 310.62 lakhs.

Note - 25 : EMPLOYEE BENEFITS Defined Benefit Plans

The Company offers the following employee benefit schemes to its employees.

Gratuity: The Company has a defined benefit gratuity plan. Every employee who has completed five years or more of service gets a gratuity on departure at 15 days salary (last drawn salary) for each completed year of service. The scheme is funded.

Risk Exposure: The defined benefit plans exposes the Company to actuarial risk, such as longevity risk, interest rate risk and market (investment) risk. The Company actively monitors how the duration and the expected yield of investments are matching the expected cash outflows arising from the employee benefit obligations. The Company has not changed the processes used to manage its risks from previous periods and monitors such obligation on regular basis.

Principal actuarial assumptions

Principal actuarial assumptions used to determine the present value of the defined benefit obligation are as follows:

Fair value hierarchy

Level 1: Level 1 hierarchy includes financial instruments measured using quoted prices. This includes listed equity instruments and mutual funds that have quoted price. The fair value of all equity instruments which are traded in the stock exchanges is valued using the closing price as at the reporting period. The mutual funds are valued using the closing NAV and listed equity instruments are being valued at the closing prices on recognised stock exchange. Level 2: The fair value of financial instruments that are not traded in an active market (for example, traded bonds, over-the counter derivatives) is determined using valuation techniques which maximize the use of observable market data and rely as little as possible on entity-specific estimates. If all significant inputs required to fair value an instrument are observable, the instrument is included in level 2.

Level 3: If one or more of the significant inputs is not based on observable market data, the instrument is included in level 3. This is the case for unlisted equity securities, contingent consideration and indemnification asset included in level 3.

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

Note - 31 : FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES

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

The Company''s financial risk management policy is set by the management. Market risk is the risk of loss of future earnings, fair values or future cash flows that may result from a change in the price of a financial instrument. The value of a financial instrument may change as a result of changes in the interest rates, foreign currency exchange rates, equity prices and other market changes that affect market risk sensitive instruments. The Company manages market risk which evaluates and exercises independent control over the entire process of market risk management. The management recommend risk management objectives and policies, which are approved by Senior Management and the Audit Committee.

a. Credit risk

Credit risk is the risk of financial loss to the Company if a customer or counterparty to a financial instrument fails to meet its contractual obligations, and arises principally from the Company''s receivables from customers. Credit risk arises from cash held with banks as well as credit exposure to clients, including outstanding accounts receivable. The maximum exposure to credit risk is equal to the carrying value of the financial assets. The objective of managing counterparty credit risk is to prevent losses in financial assets. The Company assesses the credit quality of the counterparties, taking into account their financial position, past experience and other factors. The Company establishes an allowance for doubtful debts and impairment that represents its estimate of incurred losses in respect of trade and other receivables and investments.

The Company''s exposure to credit risk is influenced mainly by the individual characteristics of each customer. The demographics of the customer, including the default risk of the industry and country in which the customer operates, also has an influence on credit risk assessment. Credit risk is managed through continuously monitoring the creditworthiness of customers to which the Company grants credit terms in the normal course of business. An impairment analysis is performed at each reporting date on an individual basis for major customers. The Company also hold security deposits for outstanding trade receivables. The history of trade receivables shows a negligible provision for bad and doubtful debts.

b. Liquidity risk

Liquidity risk is the risk that the Company will not be able to meet its financial obligations as they become due. The Company manages its liquidity risk by ensuring, as far as possible, that it will always have sufficient liquidity to meet its liabilities when due.

c. Market risk

Market risk is the risk of loss of future earnings, fair values or future cash flows that may result from adverse changes in market rates and prices (such as interest rates, foreign currency exchange rates and commodity prices) or in the price of market risk-sensitive instruments as a result of such adverse changes in market rates and prices. Market risk is attributable to all market risk-sensitive financial instruments and all short term and long-term debt. The Company is exposed to market risk primarily related to foreign exchange rate risk, interest rate risk and the market value of its investments. Thus, the Company''s exposure to market risk is a function of investing and borrowing activities.

d. Foreign exchange risk

Foreign currency risk is the risk that the fair value or future cash flows of an exposure will fluctuate because of changes in foreign exchange rates.

The Company''s foreign exchange risk arises from its foreign currency borrowings (primarily in USD). As a result, if the value of the Indian rupee appreciates relative to these foreign currencies, the Company''s revenues measured in Indian rupees may decrease.

The following table sets forth information relating to foreign currency exposure (other than risk arising from derivatives disclosed below):

Interest rate risk

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. However the company''s exposure to foreign currency loan is of fixed interest rate.

The Company''s investments in term deposits (i.e., margin money) with banks are for short durations, and therefore do not expose the Company to significant interest rates risk.

Note - 32:

During the financial year ended March 31, 2023, the Company issued 3,50,00,000, 10% Non-Convertible Cumulative Non-Participating Redeemable Preference Shares (NCRPS) having Face Value of Rs 100/- each to Riddhi Siddhi Gluco Biols Limited (Holding Company) for a cash consideration amounting to Rs 35,000/- lakhs. Proceeds realised from the issue of NCRPS have been utilised to repay the Inter Corporate Deposits received from the Holding Company.

Note - 33 : CAPITAL MANAGEMENT

a) Risk Management:

The Company aim to manages its capital efficiently so as to safeguard its ability to continue as a going concern and to optimise returns to our shareholders and benefits for other stakeholders and maintain an optimal capital structure to reduce the cost of capital.

The capital structure of the Company is based on management''s judgement of the appropriate balance of key elements in order to meet its strategic and day-to-day needs. We consider the amount of capital in proportion to risk and manage the capital structure in light of changes in economic conditions and the risk characteristics of the underlying assets. In order to maintain or adjust the capital structure, the Company may adjust the amount of dividends paid to shareholders, return capital to shareholders, issue new shares or sell assets to reduce debt.

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.

b) Dividends:

The Company has not recommended any dividend for the financial year ended March 31, 2024 Note - 34 :

During the fiscal year 2022-23, the Paper Division of the Company has been classified as a discontinued operation. Consequently, the assets and liabilities related to the Paper Division, primarily comprising plant, machinery, and other associated assets, are presented separately as discontinued operations. Throughout the year, the Company has disposed of various assets on a piecemeal basis. The Company remains committed to the disposal of the remaining asset of the paper Division and is actively exploring various alternatives to realize their value. Given the nature and geographical dispersion of these assets, along with the anticipated fair value from their disposal, there has been an

Corporate Social Responsibility (CSR):

The Company has not earned net profit in the three immediately preceding financial years, therefore, there was no amount as per section 135 of the Act which was required to be spent on CSR activities in the current financial period by the Company.

Note - 37 :

Recent pronouncement to Ind AS.

Ministry of Corporate Affairs ("MCA") notifies new standards or amendments to the existing standards under Companies (Indian Accounting Standards) Rules as issued from time to time. During the year ended March 31,2024, MCA has not notified any new standards or amendments to the existing standards applicable to the Company.

Note - 38 :

Additional regulatory information required by Schedule III of the Act:

(a) Title deeds of immovable properties not held in name of the company

The title deeds of all the immovable properties (other than properties where the Company is the lessee and the lease agreements are duly executed in favor of the lessee), as disclosed in notes to the financial statements, are held in the name of the Company.

(b) Valuation of PP&E and Intangible Assets:

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

(c) Loans or Advances in the nautre of Loans granted to Promoters, Directors, Key Managerial Personnel and Related Parties

The Company has not provided or given Loans or Advances in the nautre of Loans granted to Promoters, Directors, Key Managerial Personnel and Related Parties either severally or jointly with any other person.

(d) Details of benami property held:

No benami property is held by the Company accordingly no proceedings are pending against the Company for holding benami property under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and Rules made thereunder.

(e) Borrowing secured against current assets:

The Company has borrowings from banks on the basis of security of current and non-current assets. The quarterly returns or statements of current assets filed by the Company with banks are in agreement with the books of accounts of the Company.

(f) Willful defaulter:

The Company has not been declared willful defaulter by any bank or financial institution or government or any government authority.

(g) Relationship with struck off companies:

The Company has no transactions with the companies struck off under the Act or Companies Act, 1956.

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

There are no charges or satisfaction which are yet to be registered with the Registrar of Companies beyond the statutory period.

(i) Compliance with number of layers of companies:

The Company has complied with the number of layers prescribed under the Act.

(k) Compliance with approved scheme(s) of arrangements:

The Company has not entered into any scheme of arrangement which has an accounting impact on current or previous financial year.

(l) Utilisation of borrowed funds and share premium:

(a) The Company has 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:

(b) The Company has 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 Company (Ultimate Beneficiaries) or

b. provide any guarantee, security or the like to or on behalf of the ultimate beneficiaries.

(m) Undisclosed income:

There is no income surrendered or disclosed as income during the current or previous year in the tax assessments under the Income Tax Act, 1961, that has not been recorded in the books of account.

(n) Details of crypto currency or virtual currency:

The Company has not traded or invested in crypto currency or virtual currency during the current or previous year. Exposure to gain/loss on derivative instruments offset to some extent the exposure to foreign currency risk, interest rate risk as disclosed above.

Note - 39 :

Figures for the previous year have been regrouped / rearranged, wherever necessary, to conform to current year''s classification.

As per our attached report of even date For and on behalf of Board of Directors of

For Batliboi & Purohit Shree Rama Newsprint Limited

Chartered Accountants ICAI FRN No.101048W

Parag Hangekar Siddharth G. Chowdhary K. L. Chandak

Partner Whole-Time Director Director

Membership No. 110096 DIN No. 01798350 DIN No. 00013487

Mukesh Samdaria Sharad Jain

Place : Mumbai Chief Financial Officer Company Secretary

Date : 20/05/2024

Place : Ahmedabad Date : 20/05/2024

---

Mar 31, 2023

(i) Rights, Preferences and Restrictions attached to equity shares

The Company has one class of equity shares having a par value of Rs. 10 per share. Each shareholder is eligible for one vote per share held. The dividend, if any proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting, except in case of interim dividend. In the event of liquidation, the equity shareholders are eligible to receive the remaining assets of the Company after distribution of all preferential amounts, if any, in proportion to their shareholding.

(ii) Aggregate number and class of Equity shares allotted as fully paid up pursuant to contract(s) without payment being received in cash or by way of bonus shares or equity shares bought back for the period of 5 years immediately preceding the balance sheet date:

(iii) Company has not reserved any share for issue under options and contracts or commitments for the sale of shares or disinvestment.

A) The Term Loans are secured by first charge ranking pari passu over all the present and future moveable and immovable property, plant and equipments of the Company and second pari passu charge on all present and future current assets.

B) Non convertible secured debenture holders are having first charge on future property, plant and equipments of the Company and pari passu second charge on existing property, plant and equipments of the Company.

C) There is no defulat on repayment of loan or payment of Interest. The Interest on ICD was not provided and paid to Holding Company for the year ended March 23 as the same is waived by the Holding Company.

D) Financial Covenants for Term Loan from ICICI Bank Ltd.:

Financial covenants to be monitored annually on the basis of audited stand alone financial statements. As per the terms and condition of the bank, Total Debt/Total Net Worth of the company should not be more than 4 : 1. The company has complied with this covenants througout the reporting period. As at March 31, 2023 the Total Debt / Total Net worth of the company is 3.25:1 (March 31, 2022 was 1.85 : 1)

E) During the financial year ended March 31, 2023, the Company issued 3,50,00,000, 10% Non-Convertible Cumulative Non-Participating Redeemable Preference Shares (NCRPS) having Face Value of Rs 100/- each to Riddhi Siddhi Gluco Biols Limited (Holding Company) for a cash consideration amounting to Rs 35,000/- lakhs.

F) Year wise repayment schedule: - There is no loan outstanding pertaining to Continuing operation.

Note :

a) Loan Repayable on Demand from Banks are secured by hypothecation of stocks of finished goods, stock in process, raw materials, stores and spares and receivables on first pari passu charge basis and by a pari passu second charge on existing property, plant and equipments of the company and pari passu first charge on the future property, plant and equipments of the Company.

b) There is no default in repayment of loans and interest.

c) During the previous finanical year the Company had taken the Inter Corporate Deposit (ICDs) which was payable on demand and carries interest @ 10 % p.a. However the company has repaid all these ICD''s during the current finanical year.

d) The carrying amounts of financial and non-financial assets pledged as security for current & non-current borrowing are disclosed as: Property, plant and equipment in Note No. 3, Inventory in Note No. 8 & Current Assets i.e. Trade Receivable of Rs. 822.57 lakhs.

Note - 25 : EMPLOYEE BENEFITS Defined Benefit Plans

The Company offers the following employee benefit schemes to its employees.

Gratuity: The Company has a defined benefit gratuity plan. Every employee who has completed five years or more of service gets a gratuity on departure at 15 days salary (last drawn salary) for each completed year of service. The scheme is funded.

Risk Exposure: The defined benefit plans exposes the Company to actuarial risk, such as longevity risk, interest rate risk and market (investment) risk. The Company actively monitors how the duration and the expected yield of investments are matching the expected cash outflows arising from the employee benefit obligations. The Company has not changed the processes used to manage its risks from previous periods and monitors such obligation on regular basis.

The sensitivity analyses above have been determined based on reasonably possible changes of the respective assumptions occurring at the end of the reporting period and may not be representative of the actual change. It is based on a change in the key assumption while holding all other assumptions constant. When calculating the sensitivity to the assumption, the method (Projected Unit Credit Method) used to calculate the liability recognised in the balance sheet has been applied. The methods and types of assumptions used in preparing the sensitivity analysis did not change compared with the previous period.

The Company is subject to legal proceedings and claims, which have arisen in the ordinary course of business. The Company is contesting the above demand and the management including its tax advisors believes that its position will likely be upheld in the appellate process. The management believes that the ultimate outcome of these proceedings will not have a material adverse effect on the Company''s financial position and results of operations.

Note - 29 : INCOME TAX EXPENSES

Due to current year losses, unabsorbed depreciation and brought forward business losses the company has not provided income tax provision. Further the company has not recognized deffered tax assets during the year as there is uncertanity regarding availability of probable future taxable profits.

Fair value hierarchy

Level 1: Level 1 hierarchy includes financial instruments measured using quoted prices. This includes listed equity instruments and mutual funds that have quoted price. The fair value of all equity instruments which are traded in the stock exchanges is valued using the closing price as at the reporting period. The mutual funds are valued using the closing NAV and listed equity instruments are being valued at the closing prices on recognised stock exchange.

Level 2: The fair value of financial instruments that are not traded in an active market (for example, traded bonds, over-the counter derivatives) is determined using valuation techniques which maximize the use of observable market data and rely as little as possible on entity-specific estimates. If all significant inputs required to fair value an instrument are observable, the instrument is included in level 2.

Level 3: If one or more of the significant inputs is not based on observable market data, the instrument is included in level 3. This is the case for unlisted equity securities, contingent consideration and indemnification asset included in level 3.

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

Note - 31 : FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES

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

The Company''s financial risk management policy is set by the management. Market risk is the risk of loss of future earnings, fair values or future cash flows that may result from a change in the price of a financial instrument. The value of a financial instrument may change as a result of changes in the interest rates, foreign currency exchange rates, equity prices and other market changes that affect market risk sensitive instruments. The Company manages market risk which evaluates and exercises independent control over the entire process of market risk management. The management recommend risk management objectives and policies, which are approved by Senior Management and the Audit Committee.

a. Credit risk

Credit risk is the risk of financial loss to the Company if a customer or counterparty to a financial instrument fails to meet its contractual obligations, and arises principally from the Company''s receivables from customers. Credit risk arises from cash held with banks as well as credit exposure to clients, including outstanding accounts receivable. The maximum exposure to credit risk is equal to the carrying value of the financial assets. The objective of managing counterparty credit risk is to prevent losses in financial assets. The Company assesses the credit quality of the counterparties, taking into account their financial position, past experience and other factors. The Company establishes an allowance for doubtful debts and impairment that represents its estimate of incurred losses in respect of trade and other receivables and investments.

The Company''s exposure to credit risk is influenced mainly by the individual characteristics of each customer. The demographics of the customer, including the default risk of the industry and country in which the customer operates, also has an influence on credit risk assessment. Credit risk is managed through continuously monitoring the creditworthiness of customers to which the Company grants credit terms in the normal course of business. An impairment analysis is performed at each reporting date on an individual basis for major customers. The Company also hold security deposits for outstanding trade receivables. The history of trade receivables shows a negligible provision for bad and doubtful debts.

b. Liquidity risk

Liquidity risk is the risk that the Company will not be able to meet its financial obligations as they become due. The Company manages its liquidity risk by ensuring, as far as possible, that it will always have sufficient liquidity to meet its liabilities when due.

c. Market risk

Market risk is the risk of loss of future earnings, fair values or future cash flows that may result from adverse changes in market rates and prices (such as interest rates, foreign currency exchange rates and commodity prices) or in the price of market risk-sensitive instruments as a result of such adverse changes in market rates and prices. Market risk is attributable to all market risk-sensitive financial instruments and all short term and long-term debt. The Company is exposed to market risk primarily related to foreign exchange rate risk, interest rate risk and the market value of its investments. Thus, the Company''s exposure to market risk is a function of investing and borrowing activities.

d. Foreign exchange risk

Foreign currency risk is the risk that the fair value or future cash flows of an exposure will fluctuate because of changes in foreign exchange rates.

forming part of the financial statements for the year ended March 31, 2023

The Company''s foreign exchange risk arises from its foreign currency borrowings (primarily in USD). As a result, if the value of the Indian rupee appreciates relative to these foreign currencies, the Company''s revenues measured in Indian rupees may decrease.

Interest rate risk

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. However the company''s exposure to foreign currency loan is of fixed interest rate.

The Company''s investments in term deposits (i.e., margin money) with banks are for short durations, and therefore do not expose the Company to significant interest rates risk.

During the financial year ended March 31, 2023, the Company issued 3,50,00,000, 10% Non-Convertible Cumulative Non-Participating Redeemable Preference Shares (NCRPS) having Face Value of Rs 100/- each to Riddhi Siddhi Gluco Biols Limited (Holding Company) for a cash consideration amounting to Rs 35,000/- lakhs. Proceeds realised from the issue of NCRPS have been utilised to repay the Inter Corporate Deposits received from the Holding Company.

Note - 33 : CAPITAL MANAGEMENT

a) Risk Management:

The Company aim to manages its capital efficiently so as to safeguard its ability to continue as a going concern and to optimise returns to our shareholders and benefits for other stakeholders and maintain an optimal capital structure to reduce the cost of capital.

The capital structure of the Company is based on management''s judgement of the appropriate balance of key elements in order to meet its strategic and day-to-day needs. We consider the amount of capital in proportion to risk and manage the capital structure in light of changes in economic conditions and the risk characteristics of the underlying assets. In order to maintain or adjust the capital structure, the Company may adjust the amount of dividends paid to shareholders, return capital to shareholders, issue new shares or sell assets to reduce debt.

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.

b) Dividends:

The Company has not recommended any dividend for the financial year ended March 31, 2023.

Note - 34 :

The Board of Directors of the Company in its meeting held on February 14, 2023 has announced to close the paper division post-retrenchment of all workmen after assessing the commercial prospects of the Paper Division and decided not to pursue the business of the Paper Division in the near future, therefore as per IND AS 105 - Non-current assets held for sale, plant and machineries with other assets associated with the paper division are considered and presented as held for sale / discontinued operations. In accordance with Ind AS 105, such assets have been measured at a lower of carrying amount or Fair value less cost to sell. Accordingly, the Company has recognised an impairment loss of Rs. 9,984.00 Lakhs during the financial year ended March 31, 2023. The detailed disclosures in accordance with Ind AS 105 are as follows:

The Paper division of the company has been identified as Discontinued operations and accordingly, its operations are presented in accordance with Ind AS 105 and related assets and liabilities are shown separately from assets/ liabilities pertaining to continuing operations. Since the paper division has been discontinued it is no longer an operating segment and the water bottle division is the only single operating segment as on 31/03/2023, accordingly segment reporting is not applicable in accordance with Ind AS 108.

Note - 36 : RECENT PRONOUNCEMENT TO IND AS

On March 31, 2023, MCA amended the Companies (Indian Accounting Standards) Rules, 2015 by issuing the Companies (Indian Accounting Standards) Amendment Rules, 2023, applicable from April 1, 2023, as below:

Ind AS 1- Presentation of Financial Statements.

The amendments require companies to disclose their material accounting policies rather than their significant accounting policies. Accounting policy information, together with other information, is material when it can reasonably be expected to influence decisions of primary users of general-purpose financial statements.The Company has evaluated the amendment and the impact of the amendment is insignificant in the financial statements.

Ind AS 8- Accounting Policies, Changes in Accounting Estimates and Errors.

This amendment has introduced a definition of ''accounting estimates'' and included amendments to Ind AS 8 to help entities distinguish changes in accounting policies from changes in accounting estimates. The definition of a change in accounting estimates has been replaced with a definition of accounting estimates. Under the new definition, accounting estimates are "monetary amounts in financial statements that are subject to measurement uncertainty". Entities develop accounting estimates if accounting policies require items in financial statements to be measured in a way that involves measurement uncertainty. The Company does not expect this amendment to have any significant impact in its financial statements.

Ind AS 12- Income Taxes.

The amendments clarify how companies account for deferred tax on transactions such as leases and decommissioning obligations. The amendments narrowed the scope of the recognition exemption in paragraphs 15 and 24 of Ind AS 12 (recognition exemption) so that it no longer applies to transactions that, on initial recognition, give rise to equal taxable and deductible temporary differences. The Company has evaluated the amendment and there is no impact on its financial statement.

Note - 37 : ADDITIONAL REGULATORY INFORMATION REQUIRED BY SCHEDULE III OF THE ACT

(a) Title deeds of immovable properties not held in name of the company

The title deeds of all the immovable properties (other than properties where the Company is the lessee and the lease agreements are duly executed in favor of the lessee), as disclosed in notes to the financial statements, are held in the name of the Company.

(b) Valuation of PP&E and Intangible Assets:

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

(c) Loans or Advances in the nautre of Loans granted to Promoters, Directors, Key Managerial Personnel and Related Parties

The Company has not provided or given Loans or Advances in the nautre of Loans granted to Promoters, Directors, Key Managerial Personnel and Related Parties either severally or jointly with any other person.

(d) Details of benami property held:

No benami property is held by the Company accordingly no proceedings are pending against the Company for holding benami property under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and Rules made thereunder.

(e) Borrowing secured against current assets:

The Company has borrowings from banks on the basis of security of current and non-current assets. The quarterly returns or statements of current assets filed by the Company with banks are in agreement with the books of accounts of the Company.

(f) Willful defaulter:

The Company has not been declared willful defaulter by any bank or financial institution or government or any government authority.

(g) Relationship with struck off companies:

The Company has no transactions with the companies struck off under the Act or Companies Act, 1956.

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

There are no charges or satisfaction which are yet to be registered with the Registrar of Companies beyond the statutory period.

(i) Compliance with number of layers of companies:

The Company has complied with the number of layers prescribed under the Act.

1. Earning for debt service = Net profit after taxes Non-cash operating expenses like depreciation and other amortisations Interest other adjustments like loss on sale of PP&E etc.

2. Working capital = Current assets minus Current liabilities.

3. Capital employed = Tangible net worth Total debt Deferred tax liability.

(k) Compliance with approved scheme(s) of arrangements:

The Company has not entered into any scheme of arrangement which has an accounting impact on current or previous financial year.

(l) Utilisation of borrowed funds and share premium:

(a) The Company has 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.

(b) The Company has 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.

(m) Undisclosed income:

There is no income surrendered or disclosed as income during the current or previous year in the tax assessments under the Income Tax Act, 1961, that has not been recorded in the books of account.

(n) Details of crypto currency or virtual currency:

The Company has not traded or invested in crypto currency or virtual currency during the current or previous year.

Exposure to gain/loss on derivative instruments offset to some extent the exposure to foreign currency risk, interest rate risk as disclosed above.

Note - 38 :

Figures for the previous year have been regrouped / rearranged, wherever necessary, to conform to current year''s classification.

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Mar 31, 2018

1. Corporate Information:

Shree Rama Newsprint Limited (“the Company”) is a public company incorporated and domiciled in India. It is engaged in the business of manufacturing and selling of Newsprint and Writing & printing papers. The Company’s equity share is listed on the Bombay Stock Exchange Ltd. and National Stock Exchange of India Ltd.

(i) Rights, Preferences and Restrictions attached to equity shares

The Company has one class of equity shares having a par value of Rs. 10 per share. Each shareholder is eligible for one vote per share held. The dividend, if any proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting, except in case of interim dividend. In the event of liquidation, the equity shareholders are eligible to receive the remaining assets of the Company after distribution of all preferential amounts, if any, in proportion to their shareholding.

(ii) Company has not reserved any share for issue under options and contracts or commitments for the sale of shares or disinvestment.

Notes :

A) The Term Loans are secured by first charge ranking pari passu over all the present and future moveable and immovable property, plant and equipments of the Company and second pari passu charge on all present and future current assets.

B) Non convertible secured debenture holders are having first charge on future property, plant and equipments of the Company and pari passu second charge on existing property, plant and equipments of the Company.

C) There is no default in repayment of loans and interest.

D) Financial Covenants for Term Loan from ICICI Bank Ltd.:

Financial covenants to be monitored annually on the basis of audited SFS. 1st testing to be done on 31/10/2018. Total debt/Total Net Worth to be as follows :

FY 2018 : 7.0

FY 2019 : 5.0

FY 2020 and beyond : 4.0

Note :

a) Loan Repayable on Demand from Banks are secured by hypothecation of stocks of finished goods, stock in process, raw materials, stores and spares and receivables on first pari passu charge basis and by a pari passu second charge on existing property, plant and equipments of the company and pari passu first charge on the future property, plant and equipments of the Company.

b) Unsecured Loan Repayable on demand is guaranteed by Riddhi Siddhi Gluco Biols Limited (Holding Company)

c) There is no default in repayment of loans and interest.

d) The carrying amounts of financial and non-financial assets i.e. Property, plant and equipment, Inventory & Current Assets are hypothicated as security for current & non-current borrowings.

Note :- Company had made provision for liability for Export obligation of Rs. 58.66 Lakhs in March 2016 and also remaining 50% of Rs. 58.66 Lakhs in March 17.

Note: All dividends from equity investments designated at FVOCI relate to investments held at the end of the reporting period. There are no dividend income relating to investments derecognised during the reporting period.

2. EMPLOYEE BENEFITS:

Defined Benefit Plans

The Company offers the following employee benefit schemes to its employees.

Gratuity: The Company has a defined benefit gratuity plan. Every employee who has completed five years or more of service gets a gratuity on departure at 15 days salary (last drawn salary) for each completed year of service. The scheme is funded.

Risk Exposure: The defined benefit plans exposes the Company to actuarial risk, such as longevity risk, interest rate risk and market (investment) risk. The Company actively monitors how the duration and the expected yield of investments are matching the expected cash outflows arising from the employee benefit obligations. The Company has not changed the processes used to manage its risks from previous periods and monitors such obligation on regular basis.

Principal actuarial assumptions

Principal actuarial assumptions used to determine the present value of the defined benefit obligation are as follows:

The following table sets out the funded status of the defined benefit schemes and the amount recognised in the financial statements:

The sensitivity analyses above have been determined based on reasonably possible changes of the respective assumptions occurring at the end of the reporting period and may not be representative of the actual change. It is based on a change in the key assumption while holding all other assumptions constant. When calculating the sensitivity to the assumption, the method (Projected Unit Credit Method) used to calculate the liability recognised in the balance sheet has been applied. The methods and types of assumptions used in preparing the sensitivity analysis did not change compared with the previous period.

During the year company has not recognized any deffered tax assets on account of unabsorbed losses and Depreciation. DTA created during the year on item of Property plant and Equipments, Investments and amortization expenses have been recognized to the extent of Deferred tax liabilities of the previous years and any excess DTA has not been recognized in the books as there is no virtual certainity for absorption of the same from future taxable income.

Fair value hierarchy

Level 1: Level 1 hierarchy includes financial instruments measured using quoted prices. This includes listed equity instruments and mutual funds that have quoted price. The fair value of all equity instruments which are traded in the stock exchanges is valued using the closing price as at the reporting period. The mutual funds are valued using the closing NAV and listed equity instruments are being valued at the closing prices on recognised stock exchange.

Level 2: The fair value of financial instruments that are not traded in an active market (for example, traded bonds, over-the counter derivatives) is determined using valuation techniques which maximize the use of observable market data and rely as little as possible on entity-specific estimates. If all significant inputs required to fair value an instrument are observable, the instrument is included in level 2.

Level 3: If one or more of the significant inputs is not based on observable market data, the instrument is included in level 3. This is the case for unlisted equity securities, contingent consideration and indemnification asset included in level 3.

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

3. FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES

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

The Company’s financial risk management policy is set by the management. Market risk is the risk of loss of future earnings, fair values or future cash flows that may result from a change in the price of a financial instrument. The value of a financial instrument may change as a result of changes in the interest rates, foreign currency exchange rates, equity prices and other market changes that affect market risk sensitive instruments. The Company manages market risk which evaluates and exercises independent control over the entire process of market risk management. The management recommend risk management objectives and policies, which are approved by Senior Management and the Audit Committee.

a. Credit risk

Credit risk is the risk of financial loss to the Company if a customer or counterparty to a financial instrument fails to meet its contractual obligations, and arises principally from the Company’s receivables from customers. Credit risk arises from cash held with banks as well as credit exposure to clients, including outstanding accounts receivable. The maximum exposure to credit risk is equal to the carrying value of the financial assets. The objective of managing counterparty credit risk is to prevent losses in financial assets. The Company assesses the credit quality of the counterparties, taking into account their financial position, past experience and other factors. The Company establishes an allowance for doubtful debts and impairment that represents its estimate of incurred losses in respect of trade and other receivables and investments.

The Company’s exposure to credit risk is influenced mainly by the individual characteristics of each customer. The demographics of the customer, including the default risk of the industry and country in which the customer operates, also has an influence on credit risk assessment. Credit risk is managed through continuously monitoring the creditworthiness of customers to which the Company grants credit terms in the normal course of business. An impairment analysis is performed at each reporting date on an individual basis for major customers. The Company also hold security deposits for outstanding trade receivables. The history of trade receivables shows a negligible provision for bad and doubtful debts.

b. Liquidity risk

Liquidity risk is the risk that the Company will not be able to meet its financial obligations as they become due. The Company manages its liquidity risk by ensuring, as far as possible, that it will always have sufficient liquidity to meet its liabilities when due.

Maturities of financial liabilities

The tables below analyze the company’s financial liabilities into relevant maturity groupings based on their contractual maturities:

c. Market risk

Market risk is the risk of loss of future earnings, fair values or future cash flows that may result from adverse changes in market rates and prices (such as interest rates, foreign currency exchange rates and commodity prices) or in the price of market risk-sensitive instruments as a result of such adverse changes in market rates and prices. Market risk is attributable to all market risk-sensitive financial instruments and all short term and long-term debt. The Company is exposed to market risk primarily related to foreign exchange rate risk, interest rate risk and the market value of its investments. Thus, the Company’s exposure to market risk is a function of investing and borrowing activities.

d. Foreign exchange risk

Foreign currency risk is the risk that the fair value or future cash flows of an exposure will fluctuate because of changes in foreign exchange rates.

The Company’s foreign exchange risk arises from its foreign currency borrowings (primarily in USD). As a result, if the value of the Indian rupee appreciates relative to these foreign currencies, the Company’s revenues measured in Indian rupees may decrease.

The above foreign currency exposures are not hedged by the derivative instruments.

The sensitivity of profit or loss due to changes in the exchange rates arises mainly from non-derivative foreign currency denominated financial instruments (mainly financial instruments denominated in USD). The same is summarized as below:

Interest rate risk

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. However the company’s exposure to foreign currency loan is of fixed interest rate.

The Company’s investments in term deposits (i.e., margin money) with banks are for short durations, and therefore do not expose the Company to significant interest rates risk.

(i) Interest rate risk exposure

The exposure of the company’s borrowing to interest rate changes at the end of the reporting period are as follows:

4. The Company is mainly engaged in newsprint and writing & Printing paper business in India and there is no other reportable business and geographical segment.

5. There was a major fire on 13 May, 2018 in the waste paper kept in open aera at the Factory, due to which a significant portion of the same has been burnt in fire. The insurance survey and estimate of its financial impact is under process.

6. CAPITAL MANAGEMENT:

a) Risk Management:

The Company aim to manages its capital efficiently so as to safeguard its ability to continue as a going concern and to optimise returns to our shareholders and benefits for other stakeholders and maintain an optimal capital structure to reduce the cost of capital.

The capital structure of the Company is based on management’s judgement of the appropriate balance of key elements in order to meet its strategic and day-to-day needs. We consider the amount of capital in proportion to risk and manage the capital structure in light of changes in economic conditions and the risk characteristics of the underlying assets. In order to maintain or adjust the capital structure, the Company may adjust the amount of dividends paid to shareholders, return capital to shareholders, issue new shares or sell assets to reduce debt.

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.

b) Dividends:

The Company has not recommended any dividend during the year in view of losses suffered by the Company.

7. Figures for the previous year have been regrouped / rearranged, wherever necessary, to conform to current year’s classification.

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Mar 31, 2016

All other derivative contracts are marked to market and losses are recognized in the Statement of Profit and Loss. Gains arising on the same are not recognized, until realized on the grounds of prudence. p) Provisions, Contingent Liabilities and Contingent Assets:

A provision is recognized when the Company has a present legal or constructive obligation as a result of past event and it is probable that an outflow of resources will be required to settle the obligation, in respect of which reliable estimate can be made. Provisions (excluding long term benefits) are not discounted to its present value and are determined based on best estimates required to settle the obligation at the balance sheet date. These are reviewed at each balance sheet date and adjusted to reflect the current best estimates.

A contingent liability is a possible obligation that arises from past events whose existence will be confirmed by the occurrence or non-occurrence of one or more uncertain future events beyond the control of the Company or a present obligation that is not recognized because it is not probable that an outflow of resources will be required to settle the obligation. A contingent liability also arises in extremely rare cases where there is a liability that cannot be recognized because it cannot be measured reliably. The Company does not recognize a contingent liability but discloses its existence in the financial statements. Claims against the Company, where the possibility of any outflow of resources in settlement is remote, are not disclosed as contingent liabilities.

Contingent assets are neither recognized nor disclosed, in the financial statements q) Employee Benefits

The Company has classified various employee benefits as under:

A. Defined Contribution Plans

a. Provident fund

b. Employers’ Contribution to Employees’ State Insurance

Retirement benefits in the form of Provident Fund and Employers’ Contribution to Employee State Insurance is a defined contribution scheme and the contributions are charged to the Statement of Profit and Loss in the year when the contributions to the respective funds are due. There are no other obligations other than the contribution payable to the respective funds.

B. Defined Benefit Plans

The Company also provides for retirement/post-retirement benefits in the form of gratuity & Leave encashment.

The liability for the defined benefits plan of Gratuity is determined on the basis of an actuarial valuation carried out by an independent actuary at the yearend using Projected Unit Credit Method.

Obligation is measured at the present value of the future cash flows using a discount rate that is based on the prevailing yields of Government of India securities as at the Balance Sheet date for the estimated term of the obligations Leave encashment (unfunded) is payable to eligible employees who have earned leaves, during the employment and/ or on separation as per the Company’s policy.

C. Actuarial gains/losses are charged to Statement of profit and loss and are not deferred.

D. Other short term employee benefits are recognized as an expense on accrual basis.

r) Leases

Leases, where Company is the lessee and the lessor effectively retains substantially all the risks and benefits of ownership of the leased item, are classified as operating leases. Operating lease payments are recognized as an expense in the Statement of Profit and Loss on a straight line basis over the lease term.

1. During the year the Company has booked profit of Rs. 1,460.00 Lacs on account of additional consideration of sale of 170 acres unused land as per the Deed of Conveyance executed by Company. Further, the Company has also obtained the requisite approval for transfer of land from the government of Gujarat.

2. The erstwhile promoter of the Company had executed Share Purchase Agreement (SPA) on 21^st May 2015 for sale of an aggregate of 2,82,77,677 shares of the Company to Riddhi Siddhi Gluco Biols Ltd. (“The Acquirer”) for a consideration aggregating to Rs. 1 Lac only, subject to release of the Corporate Guarantees etc. The terms and condition of SPA is compiled and entire transaction was completed on 26-08-2015 after transfer of shares in favour of “The Acquirer” and release of corporate guarantees, etc.

3. The Company has not recognized Deferred Tax Asset (DTA) as per Accounting Standard 22- ‘Accounting for taxes on income’ for the current year. However the DTA created upto 31st March, 2014 has not been reversed, since the management believes that with infusion of fresh funds and restructuring of the existing debt, there is a certainty about the availability of future taxable income and such deferred tax asset would be realized.

4. The Company is mainly engaged in newsprint and writing & printing paper business in India and there is no other reportable business and geographical segment as required by Accounting Standard - 17 “Segment Reporting”.

5. Particulars of Derivative Instruments:

(a) The Company has entered into forward contract of USD 4.57 lacs (Previous Year - Rs. Nil) to offset its foreign currency risks related to buyers credit denominated in currencies other than the Indian Rupee..

(b) No Derivative Instruments are acquired for speculation purpose.

(c) Foreign currency exposures that are not hedged by the derivative instruments or otherwise are:

6. Operating Lease

a) Operating Lease payment recognized in statement of Profit & Loss amounting to Rs. 39.88 lacs (Previous Year Rs. 93.56 lacs)

7. The Company had written off Inter Corporate Deposits of Rs. 5,159.50 lacs given by The West Coast Paper Mills Ltd. in accounting year 2014-15 in pursuance to Share Purchase Agreement dated 21/05/2015.

8. The Company has raised Rs. 6,000 lacs by way of preferential issue of equity shares and Rs. 3,000 lacs by way of unlisted Zero coupon - OFC issue both totaling to Rs. 9,000 lacs during the year 2015-16 apart from borrowings restructured as per JLF decision on 31/03/2015 which reduced finance cost. Further, Considering the improvements in the working during the year 2015-16 over the previous year 2014-15 and the Company having neither the intention nor the necessity of liquidation or of curtailing materially the scale of the operations, the accounts have been prepared on going concern basis.

9. The Company is incurring losses and hence debenture redemption reserve is not created.

10. Previous year figures have been regrouped / rearranged wherever necessary.

---

Mar 31, 2015

1. The Company has classified various employee benefits as under:

A. Defined Contribution Plans

a. Provident fund

b. State defined contribution plans

Employers' Contribution to Employees' State Insurance

The provident fund and the state defined contribution plan are operated by the Regional Provident Fund Commissioner. Under the schemes, the Company is required to contribute a specified percentage of payroll cost to the retirement benefit schemes, to fund the benefits. These funds are recognized by the Income tax authorities.

2 (a). Other Claims against the Company not acknowledged as debts Rs. 5,236.79 Lacs (as on 31.03.2014 Rs. 4,616.85 Lacs).

(b). Unexpired Letter of Credits established in respect of Plant & Machinery, Raw Materials and Stores & Spares Rs. 4.47 Lacs (as on 31.03.2014 Rs. 1,238.41 Lacs)

(c). Bank guarantees issued by banks Rs. 329.91 Lacs (as on 31.03.2014 Rs. 333.33 Lacs).

(d). Arrears of dividend on Cumulative Preference Shares from 15th April 1998 to 15th Dec. 2001 aggregate Rs. 2,069.95Lacs.

3. Estimated amount of contracts remaining to be executed on Capital Account (Net of Advance) Rs. 112.41 lacs (as on 31.03.2014 Rs. 136.11 Lacs ).

4. Interest free Loan under Sales Tax deferral scheme from Government of Gujarat is Rs.667.91 Lacs. out of which Rs. 260.96 Lacs paid on 24th April,2015 and balance Rs. 406.95 Lacs will be due on 31st May 2015.

5. Based on the Information available with the company regarding the status of the suppliers as defined under the Micro Small and Medium Enterprise Development Act, 2006 (The MSMED), no suppliers are outstanding for more than 45days as per the terms & conditions of the order.

6. Balance with Excise Dept. being Cenvat Credit receivable Rs..2,650.35 lacs (as on 31.03.2014 Rs.. 2,640.64 Lacs) is realizable subject to adequate excise duty leviable on finished goods.

7. The company has accounted for sale of 170 acres of its unused land as per the Agreement to Sell executed by the company in the F Y 2013-14 . The Company has received the sale proceeds and also No Objection from the term lenders for aforesaid sale. The requisite formalities / approval for transfer of land are in progress.

8. The accumulated losses of the Company as at 31st March,2015 have exceeded the net worth. The Company will make requisite reference to the BIFR within 60 days from the date of fnalization of the duly audited accounts of the Company by the members at the forthcoming Annual General Meeting, as required under section 15 of the Sick Industrial Companies (Special Provisions) Act, 1985 for determination of the measures to be adopted.

9. The accounts have been prepared on the basis of 'Going Concern Concept' despite continuing losses in the recent past, since as a result of the measures initiated by the Company as mentioned in Note No. 41 & 42 the Management is confident about positive results in the near future.

10. Pursuant to the Share Purchase Agreement (SPA) dated 21st May 2015, the Promoters of the Company have sold an aggregate of 2,82,77,677 shares of the company to Riddhi Siddhi Gluco Biols Ltd. ("The Acquirer") for a consideration aggregating Rs. 1,00,000/- (Rupees One lac only) subject to release of the Corporate Guarantees aggregating to Rs. 246.25 crores given by The West Coast Paper Mills Ltd. ("WCPML") to secure certain loans availed by the Company. Pursuant to the terms of the said SPA, WCPML have also agreed for settlement of their Inter Corporate Deposits (ICDs) amounting to Rs. 52,29,50,389/- given to the Company at Rs. 70,00,000/- (Rupees Seventy Lacs only) and to waive interest on the said ICDs w.e.f. 1st April, 2014.

Accordingly, the ICDs amounting to (Rs.). 51,59,50,389/- stand waived.

11. The Company has called an Extraordinary General meeting of the Shareholders of the Company on 20-06-2015 for approving the issue of 6,00,00,000 Equity Shares in the Company to the incoming Promoters (Acquirer) and Optionally Convertible Redeemable Debentures ("OCD") amounting to Rs. 30,00,00,000/- to ICICI Bank Ltd. on Preferential basis. Upon such issue and allotment of 6,00,00,000 Equity Shares, the net Worth will improve.

12. The Company has not recognized Deferred Tax Asset (DTA)as per AS 22,for the current year. However the DTA created upto 31st March,2014 has not been reversed since the management believes that with infusion of fresh funds and restructuring of the existing debt, there is a virtual certainty about the availability of future taxable income and such deferred tax asset would be realized.

13. The Company's products namely newsprint and writing & printing paper are classified under one segment, hence segment information as per accounting standard 17 is not required to be disclosed.

14. Particulars of Derivative Instruments:

(a) The Company has not entered into any forward contract to offset its foreign currency risks arising from the amounts denominated in currencies other than the Indian Rupee..

(b) No Derivative Instruments are acquired for speculation purpose.

15. Operating Lease

a) Operating Lease payment recognized in statement of Profit & Loss amounting to Rs.. 93.56 Lacs ( Previous Year Rs.. 168.72 Lacs.)

b) General description of leasing arrangement :

i) Leased Assets : Employees Flats, Office Space, etc.

ii) Future lease rentals are determined on the basis of agreed terms.

iii) At the expiry of the lease term, the company has an option either to return the asset or extend the term by giving notice in writing.

16. Previous year figures have been regrouped / rearranged wherever necessary.

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Mar 31, 2014

1. The Company has classified various employee benefits as under:

A. Defined Contribution Plans

a. Provident fund

b. State Defined contribution plans

Employers'' Contribution to Employees'' State Insurance

The provident fund and the state Defined contribution plan are operated by the Regional Provident Fund Commissioner. Under the schemes, the Company is required to contribute a specified percentage of payroll cost to the retirement benefit schemes, to fund the benefits. These funds are recognized by the Income tax authorities.

2. Other Claims against the Company not acknowledged as debts Rs. 4,616.85 Lacs (as on 31.03.2013 Rs. 2,281.76 Lacs).

3. Unexpired Letter of Credits established in respect of Plant & Machinery, Raw Materials and Stores & Spares Rs. 1,238.41 Lacs (as on 31.03.2013 Rs. 2,072.24 Lacs)

4. Bank guarantees issued by banks Rs. 333.33 Lacs (as on 31.03.2013 Rs. 256.85 Lacs).

5. Arrears of dividend on Cumulative Preference Shares from 15th April 1998 to 15th Dec. 2001 aggregate Rs. 2,069.95Lacs.

6. Estimated amount of contracts remaining to be executed on Capital Account (Net of Advance) Rs. 136.11 lacs (as on 31.03.2013 Rs. 419.80 Lacs ).

7. Interest free Loan under Sales Tax deferral scheme from Government of Gujarat is repayable in two equal annual installments of Rs. 406.95 Lacs on 31st May 2014 and 2015.

8. In respect of Sundry Creditors which are Micro, Small & Medium Enterprises, the company has not availed credit facility beyond 45 days. There is no outstanding payable to Micro, Small & Medium Enterprises as on the date of Balance Sheet.

No interest is outstanding to any Small Scale or Ancillary Unit as on 31st March, 2014, under the provisions of Interest on Delayed Payments to Small Scale and Ancillary Industrial Undertaking Act, 1993.

9. Balance with Excise Dept. being Cenvat Credit receivable Rs..2,640.64 lacs (as on 31.03.2013 Rs.. 2,623.97 Lacs) is realizable subject to adequate excise duty leviable on fnished goods.

10. The company has accounted for sale of 170 acres of its unused land as per the Agreement to Sell executed by the company. The Company has received substantial portion of the sale proceeds and also No Objection from the term lenders for aforesaid sale.The requisite formalities / approval for transfer of land are in progress.

11. The Company has recognized Deferred Tax Asset as per AS 22, since the management believes that under the improved market scenario coupled with the decisions to infuse fresh funds and leveraging of all surplus assets, there is a virtual certainty about the availability of future taxable income and such deferred tax asset would be realized.

12. Operating Lease

a) Operating Lease payment recognized in statement of Profit & Loss amounting to Rs.. 168.72 Lacs ( Previous Year Rs.. 186.70 Lacs).

b) General description of leasing arrangement :

i) Leased Assets : Employees Flats, office Space, etc. ii) Future lease rentals are determined on the basis of agreed terms.

iii) At the expiry of the lease term, the company has an option either to return the asset or extend the term by giving notice in writing.

13. Previous year figures have been re-grouped / re-arranged wherever necessary.

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Mar 31, 2013

1. As notified by Ministry of Corporate Affairs, revised Schedule VI under the Companies Act, 1956 is applicable to the financial statements for the financial year commencing on or after 1st April, 2012. Accordingly, the financial statements for the period ended 31st March, 2013 are prepared in accordance with the revised Schedule VI. The amounts and disclosures included in the financial statements of the previous year have been reclassified to confirm to the requirements of revised Schedule VI.

2. The Company has classified various employee benefits as under: A. Defined Contribution Plans

a. Provident fund

b. State defined contribution plans

Employers'' Contribution to Employees'' State Insurance

The provident fund and the state defined contribution plan are operated by the Regional Provident Fund Commissioner. Under the schemes, the Company is required to contribute a specified percentage of payroll cost to the retirement benefit schemes, to fund the benefits. These funds are recognized by the Income tax authorities.

3. Other Claims against the Company not acknowledged as debts Rs.2,281.76 Lacs (as on 31.03.2012Rs. 1,921.71 Lacs).

4. Unexpired Letter of Credits established in respect of Plant & Machinery, Raw Materials and Stores & Spares Rs. 2,072.24 Lacs (as on 31.03.2012 Rs. 4,720.64 Lacs)

5. Bank guarantees issued by banks Rs. 256.85 Lacs (as on 31.03.2012 Rs. 412.78 Lacs).

6. Arrears of dividend on Cumulative Preference Shares from 15th April 1998 to 15th Dec. 2001 aggregate Rs. 2,069.95Lacs.

7. Estimated amount of contracts remaining to be executed on Capital Account (Net of Advance) Rs. 419.80 lacs (as on 31.03.2012 Rs.100.24 Lacs).

8. Interest free Loan under Sales Tax deferral scheme from Government of Gujarat is repayable in three equal annual installments of Rs. 406.95 Lacs on 31st May 2013, 2014 and 2015.

9. In respect of Sundry Creditors which are Micro, Small & Medium Enterprises, the company has not availed credit facility beyond 45 days. There is no outstanding payable to Micro, Small & Medium Enterprises as on the date of Balance Sheet.

No interest is outstanding to any Small Scale or Ancillary Unit as on 31st March, 2013, under the provisions of Interest on Delayed Payments to Small Scale and Ancillary Industrial Undertaking Act, 1993.

10. Balance with Excise Dept. being Cenvat Credit receivable (Rs. 2,623.97 Lacs) is realizable within one year subject to adequate excise duty leviable on the finished goods i.e. Newsprint and Writing & Printing paper to be produced.

11. Break-up of consumption of imported and indigenous raw materials, chemicals,packing material and stores and spares:

12. The company has entered into an Agreement for Sale of 170 acres of its unused land, subject to requisite approvals.

13. The Company has recognized Deferred Tax Asset as per AS 22, since the management believes that under the improved market scenario coupled with the decisions to infuse fresh funds and leveraging of all surplus assets, there is a virtual certainty about the availability of future taxable income and such deferred tax asset would be realized.

14. The Company''s products namely Newsprint and Writing & Printing paper are classified under one segment.

15. Related Party Disclosures:

i) Related Party Relationship

a) Enterprises who exercise control The West Coast Paper Mills Ltd.

b) Key Management Personnel P.S. Maharaj - Executive Director

c) Enterprises owned or significantly influenced by Relatives of Key Management Personnel

Note: In respect of above parties, there is no provision of doubtful debts as on 31stMarch, 2013 and no amount has been written off or written back during the year in respect of debts due from/to them.

16. Previous year figures have been re-grouped / re-arranged wherever necessary.

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Mar 31, 2012

A) Reconciliation of Shares Outstanding during the year

No Shares have been issued or bought back during the current and previous years.

b) Terms/Rights attached to Equity Shares

The Company has only one class of equity shares having a par value of Rs. 10 per share. Each holder of equity share is entitled to one vote per share.

In the event of liqudation of the company, the holders of equty shares will be entitled to receive remaining assets of the company, after distribution of all preferential amounts. The distribution will be in proportion to number of equity shares held by shareholders.

d) Aggregate number of bonus shares issued, shares issued for consideration other than cash and shares bought back during the period of five years immediately preceding the reporting date During the period of preceding five years the company has not:

- allotted any shares without payment being received in cash,

- allotted any shares by way of bonus shares and

- bought back any shares.

1) The Term Loan and Working Capital Term Loan are secured by first charge ranking pari passu on all immovable properties of the company, both present and future and hypothecation of all Company's moveable machinery,spares,tools and accessories,present and future, subject to prior charges created on Company's stock of raw materials, stock in process, finished goods, comsumable stores etc. in favour of the Company's bankers for securing borrowings for working capital requirements, and Corporate guarantee by The West Coast Paper Mills Ltd.

2) The Rupee Term Loan and Working Capital Term Loan from ICICI Bank are to be repaid in thirty two/ sixteen quarterly installments respectively commencing from 31.07.2013.

3) Interest on Term Loan and Working Capital Term Loan on ICICI Bank is in arrears since 31.01.2012 aggregating to Rs. 546.40 lac.

Cash Credit (repayable on demand) is secured by hypothecation of the Company's stock of finished goods, stock in process,raw materials, stores and spares,book debts,etc.and by a second charge created on all immovable properties of the company, present and future.

1. As notified by Ministry of Corporate Affairs, Revised Schedule VI under the Companies Act, 1956 is applicable to the financial statements for the financial year commencing on or after 1st April, 2011. Accordingly, the financial statements for the period ended 31st March, 2012 are prepared in accordance with the revised Schedule VI. The amounts and disclosures included in the financial statements of the previous year have been reclassified to confirm to the requirements of revised Schedule VI.

2. The Company has classified various employee benefits as under:

A. Defined Contribution Plans

a) Provident fund

b) State defined contribution plans

Employers Contribution to Employees' State Insurance

The provident fund and the state defined contribution plan are operated by the Regional Provident Fund Commissioner. Under the schemes, the Company is required to contribute a specified percentage of payroll cost to the retirement benefit schemes, to fund the benefits. These funds are recognized by the Income tax authorities.

B. Defined Benefit Plans

a. Gratuity

b. Leave Encashment

Leave encashment is payable to eligible employees who have earned leaves, during the employment and/or on separation as per the company's policy.

3. Claims against the Company not acknowledged as debts Rs.1921.71 Lac (as on 31.03.2011 Rs. 1,620.93 Lac).

4. Estimated amount of contracts remaining to be executed on Capital Account (Net of Advance) Rs.100.24 lac (as on 31.03.2011 NIL).

5. Unexpired Letter of Credits established in respect of Plant & Machinery, Raw Materials and Stores & Spares Rs. 4,720.64 Lac (as on 31.03.2011 Rs. 6,349.24 Lac)

6. Bank guarantees issued by banks is 412.78 Lac (as on 31.03.2011 Rs. 223.17 Lac).

7. Arrears of dividend on Cumulative Preference Shares from 15th April 1998 to 15th Dec. 2001 aggregate Rs. 2,069.95 Lac.

8. The Company had created Contingency Reserve representing the remission granted by CDR members (except those with whom one time settlement was made) in principal loan amount under the CDR scheme on 27th September,2003. As per the terms of the said CDR scheme the remission granted by the CDR members could be retrospectively revoked on certain events of default. As the company has repaid dues of all the CDR members, except Arcil and there being no events of default, the said Contingency Reserve amounting to Rs. 11765.48 Lac is credited to Statement of Profit and Loss.

9. Interest free Loan under Sales Tax deferral scheme from Government of Gujarat is repayable in Six equal annual installments of Rs. 406.95 Lac starting from 31.05.2010.

10. In respect of Sundry Creditors which are Micro, Small & Medium Enterprises, the company has not availed credit facility beyond 45 days. There is no outstanding payable to Micro, Small & Medium Enterprises as on the date of Balance Sheet.

No interest is outstanding to any Small Scale or Ancillary Unit as on 31st March, 2012, under the provisions of Interest on Delayed Payments to Small Scale and Ancillary Industrial Undertaking Act, 1993.

11. Balance with Excise Department being Cenvat Credit receivable (Rs. 2614.19 lac) is realizable within one year subject to adequate excise duty leviable on the finished goods i.e. newsprint and writing & printing paper to be produced.

12. The Company had recognized Deferred Tax Asset in earlier years pursuant to Accounting Standard 22. However, in view of the loss incurred by the Company and as a matter of prudence, the Deferred Tax Asset outstanding as on 31-03-2010 was written-off during 2010-11.

The Company has now decided to again recognize Deferred Tax Asset as on 31-03-2012, since the management strongly believes that under the improved market scenario coupled with the decisions to infuse fresh funds and leveraging of all surplus assets, there is a virtual certainty about the availability of future taxable income and such Deferred Tax Asset would be realized.

13. The Company's products namely newsprint and writing & printing paper are classified under one segment.

14. Previous year figures have been regrouped / rearranged wherever necessary.

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Mar 31, 2011

1. The Company has classified various employee benefits as under:

(A) Defined Contribution Plans

a. Provident fund

b. State defined contribution plans

Employers' Contribution to Employees' State Insurance

The provident fund and the state defined contribution plan are operated by the Regional Provident Fund Commissioner. Under the schemes, the Company is required to contribute a specified percentage of payroll cost to the retirement benefit schemes, to fund the benefits. These funds are recognized by the Income tax authorities.

The Company has recognized the following amounts in the Profit and Loss Account.

2. Claims against the Company not acknowledged as debts Rs. 1,620.93 Lacs (as on 31.03.2010 Rs. 1,523.47 Lacs).

3. Estimated amount of contracts remaining to be executed on Capital Account (Net of Advance) NIL (as on 31.03.2010 NIL).

4. Unexpired Letter of Credits established in respect of Plant & Machinery, Raw Materials and Stores & Spares Rs. 6,349.24 Lacs (as on 31.03.2010 Rs. 3,697.62 Lacs)

5. Bank guarantees issued by banks Rs. 223.17Lacs (as on 31.03.2010 Rs. 1,158.04 Lacs).

6. Arrears of dividend on Cumulative Preference Shares from 15th April 1998 to 15th Dec. 2001 aggregate Rs. 2,069.95Lacs.

7. Interest free Loan under Sales Tax deferral scheme from Government of Gujarat is repayable in Six equal annual installments of Rs. 406.95 Lacs starting from 31.05.2010.

8. Contingency reserve represents remission granted by CDR members (except those with whom one time settlement was made) in principal loan amount to the Restructuring Scheme approved by the Corporate Debt Restructuring Cell on 27th Sept.2003.The said Scheme of Restructuring stipulates repayment of outstanding Loans in installments ending on 15th August 2012 and a Corporate guarantee from The West Coast Paper Mills Ltd. As additional Security and that on certain special events of default, the remission granted would be retrospectively revoked.

9. In respect of Sundry Creditors which are Micro, Small & Medium Enterprises, the company has not availed credit facility beyond 45 days. There is no outstanding payable to Micro, Small & Medium Enterprises as on the date of Balance Sheet.

No interest is outstanding to any Small Scale or Ancillary Unit as on 31st March, 2011, under the provisions of Interest on Delayed Payments to Small Scale and Ancillary Industrial Undertaking Act, 1993.

10. Exchange difference (net) Credit of Rs. 216.13 Lacs (previous year (net) Credit Rs. 604.66Lacs) has been included in respective heads of accounts in Profit and Loss account.

11. Deferred Taxation

The Company had recognized Deferred Tax Asset in earlier years pursuant to Accounting Standard-22. However, in the absence of virtual certainty about the availability of future taxable income to realize the Deferred Tax Asset as on 31-03-2011 and as a matter of prudence, the Deferred Tax Asset amounting to Rs. 6168.20 Lacs as on 31-03-2010 has been written off during the,year. As per the accounting policy being followed by the Company, the Company would again create Deferred Tax Asset, to the extent there is a virtual certainty of realization of the same in future.

12. The Company's products namely Newsprint and Writing & Printing paper are classified under one segment.

13. Related Party Disclosures:

i) Related Party Relationships

a) Enterprises who exercise control The West Coast Paper Mills Ltd.

b) Key Management Personnel Shri V.D.Bajaj-Executive Director (upto 8th January, 2011)

ShriVs.Maharaj-Executive Director (from 16th Dec., 2010)

c) Enterprises owned or significantly influenced Sai Jyoti Paper Products Pvt. Ltd. by Relatives of Key Management Shrinath Printers Pvt.Ltd. Personnel

14. Previous year figures have been regrouped rearranged wherever necessary.

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Mar 31, 2010

1) Employee Benefits Contributions to defined contribution schemes such as Provident Fund etc. are charged to the Profit and Loss account as incurred. The Company also provides for retirement/post-retirement benefits in the form of gratuity and leave encashment. Such defined benefits are charged to the Profit and Loss account based on valuations, as at the balance sheet date, conducted by independent actuaries. The Company has classified various employee benefits as under:

(A) Defined Contribution Plans

a. Provident fund

b. State defined contribution plans

- Employers Contribution to Employees State Insurance

The provident fund and the state defined contribution plan are operated by the Regional Provident Fund Commissioner. Under the schemes, the Company is required to contribute a specified percentage of payroll cost to the retirement benefit schemes, to fund the benefits. These funds are recognized by the Income tax authorities.

2. Claims against the Company not acknowledged as debts Rs. 1,523.47 Lacs (as on 31.03.2009 Rs. 1,541.52 Lacs).

3. Estimated amount of contracts remaining to be executed on Capital Account (Net of Advance) NIL ( as on 31.03.2009 NIL ).

4. Unexpired Letter of Credits established in respect of Plant & Machinery, Raw Materials and Stores & Spares Rs. 3,697.62Lacs (as on 31.03.2009 Rs.4,457.02 Lacs)

5. Bank guarantees issued by banks Rs. 1,158.04 (as on 31.03.2009 Rs. 207.19 Lacs).

6. Arrears of dividend on Cumulative Preference Shares from 15th April 1998 to 15th Dec. 2001 aggregate Rs.2,069.95Lacs.

7. Balances with Excise & Sales Tax Authorities are subject to confirmation.

8. Interest free Loan under Sales Tax deferral scheme from Government of Gujarat is repayable in six equal annual installments starting from 31.05.2010. However the company has approached Govt. of Gujarat for deferment in the repayment schedule.

9. There are no amounts outstanding to Micro, Small & Medium Enterprises for more than 45 days as on the date of Balance Sheet.

No interest is outstanding to any Small Scale or Ancillary Unit as on 31st March, 2010, under the provisions of Interest on Delayed Payments to Small Scale and Ancillary Industrial Undertaking Act, 1993.

10. Exchange difference (net) Credit of Rs. 604.66Lacs (previous year (net) Debit Rs.708.42Lacs) has been included in respective heads of accounts in Profit and Loss account.

11. In view of the Tax Remission Scheme availed by the company VAT/CST on sales upto 26.3.2010 (i.e. upto the validity of the Scheme) has been credited to Sales.

12. The Companys products namely newsprint and writing & printing paper are classified under one segment.

13. Related Party Disclosures:

i) Related Party Relationships

a) Enterprises who exercise control The West Coast Paper Mills Ltd.

b) Key Management Personnel Mr. V.D.Bajaj – Executive Director

c) Enterprises owned or significantly influenced by Sai Jyoti Paper Products Pvt. Ltd. Relatives of Key Management Personnel Shrinath Printers Pvt.Ltd.

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

14. Previous year figures have been regrouped / rearranged wherever necessary.