Notes to Accounts of Linc Ltd.

Mar 31, 2025

T. Provisions, Contingent Liabilities and Contingent Assets

Provisions are recognised when the Company has a present obligation (legal or
constructive) as a result of a past event, it is probable that an outflow of resources
embodying economic benefits will be required to settle the obligation and a reliable
estimate can be made of the amount of the obligation. When the company expects
some or all of a provision to be reimbursed, the reimbursement is recognized as a
separate asset, but only when the reimbursement is certain. The expense relating to
a provision is presented in the statement of profit and loss net of any reimbursement.

Contingent liabilities are disclosed when the Company has a possible obligation or a
present obligation and it is probable that an outflow of resources embodying economic
benefits will not be required to settle the obligation. The Company does not recognize a
contingent liability but discloses its existence in the financial statements.

Contingent assets are not recognised in the financial statements since this may result
in the recognition of income that may never be realised. However, when the realisation
of income is virtually certain, then the related asset is not a contingent asset and is
recognized.

Note:

a) There are no projects as on each reporting date which have exceeded the cost as
compared to its original plan or where completion is overdue. However, One of the
ongoing project has been delayed by a period of six months and another projects has
been supended temporarily by the company.

b) Capital Work-in-Progress As at 31.03.2025 mainly comprises of construction cost of
Building and Plant & equipment of the Company. (As at 31.03.24 mainly comprises of
construction cost of Building and Plant & equipment of the Company. )

e. Aggregate number of share issued for consideration other than cash:

During the year 2019-20, 16,74,806 shares were issued pursuant to scheme of
arrangement and bonus shares issued during the year as detailed in note 17(h) below.

f. The Company has not bought back any shares during the last 5 years.

g After the Reporting date, the Board of Directors has proposed a dividend of H 1.50/-
per equity share (i.e. 30% on Face value of H5 each) for the year ended 31^st March
2025 (31^st March ,2024 - H5.00/- (i.e. 50% on Face value of H10 each)). The dividend
proposed by the Board of Directors is subject to the approval of the shareholders in the
ensuing Annual General Meeting and if approved it will lead to cash outflow amounting
to H892.34 Lakhs.

h "Pursuant to resolution passed by the Board at their meeting dated 29^th October,
2024 and approval by the Shareholders via Postal Ballot on 6^th December, 2024, the
Company has sub-divided its equity shares of face value of H1 0/- each to 2 Equity
Shares of face value of H5/- each. Further, the shareholder''s approved issuance of
bonus shares to the shareholders as on record date i.e. 20^th December, 2024 in the
ratio of 1:1 i.e. one bonus equity share for each existing equity share. The Stakeholder
Relationship Committee of the Board at their meeting held on 23^rd December, 2024
issued and allotted 2,97,44,582 number of Bonus Equity Shares of H5/- each,
by capitalizing a sum of H1487.23 Lakhs from the Securities Premium account.
''The Board of Directors at its meeting held on 29^th October, 2024 have also
recommended further increase in Authorized Capital of the Company from H1550 Lakhs
to H3100 Lakhs comprising of 6,20,00,000 no. of Equity Share of face value of H5/-
each ranking pari passu with the existing shares of the Company. The aforesaid increase
in authorised share capital and alteration in the Capital Clause of the Memorandum of
Association has also been approved by the shareholders via the Postal Ballot."

i No ordinary shares have been reserved per issue under options and contract/
commitments for the sale of shares/ disinvestment as at the Balance Sheet date.

j No securities convertible into Equity/ Preference shares have been issued by the
Company during the year.

k. No calls are unpaid by any directors/ officers of the Company during the year.

l. The Company does not have any Holding Company or Ultimate Holding Company.

Description of nature and purpose of each reserve :

a. Securities Premium

Securities Premium represents the excess of the amount received over the face value
of the shares. This reserve will be utilised in accordance with the provisions of the
Companies Act, 2013.

b. General Reserve

General Reserve is created from time to time by way of transfer profits from retained
earnings for appropriation purposes. General Reserve is created by a transfer from one
component of equity to another and is not an item of other Comprehensive income.

c. Capital Reserve

Capital Reserve represents arisen on business combination on earlier years.

d. Retained Earning

Retained earnings are the profits that the Company has earned till date, less any transfers
to general reserve, dividends or other distributions paid to investors. This includes
remeasurement of defined benefit plans arising due to actuarial valuation of gratuity,
that will not be routed through Statement of profit and loss subsequently.

b) Defined Benefit Plan :

The Company has a defined benefit gratuity plan. Every employee who has completed
five years or more of service is entitled to Gratuity on terms not less favourable than
the provisions of The Payment of Gratuity Act, 1972. The scheme is funded with an
insurance company.

The following tables summarise the components of net benefit expense recognised in
the statement of profit and loss and the funded status and amounts recognised in the
balance sheet for the Post - retirement benefit plans.

Sensitivity analysis above have been determine based on a method that extrapolates
the impact on defined benefit obligation as a result of reasonable changes in key
assumptions occurring at the end of the reporting period.

X. Risk Exposure

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

ii) Salary Inflation Risk : Higher than expected increase in salary will increase the
defined benefit obligation.

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

*The company has received a demand order dated January 31, 2025 towards short
payment of Goods & Services Tax ("GST") amounting to H353.39 lakhs and Penalty
amounting to H353.39 lakhs plus applicable interest with respect to HSN classification
of pen refills and other components. The company has contested this demand, filing an
appeal against the order on March 23, 2025. Based on advice from taxation expert, the
Company believes that it has strong case on merits and hence no provision has been
made there against.

The amounts shown in (b) above represent the best possible estimates arrived at on
the basis of available information. The uncertainties and timing of the cash flows are
dependent on the outcome of the different legal processes which have been invoked by
the Company or the claimants as the case may be and therefore cannot be estimated
accurately.

In the opinion of the management, no provision is considered necessary for the disputes
mentioned above on the grounds that there are fair chances of successful outcome of
appeals.

The Company does not expect any reimbursements in respect of the above contingent
liabilities.

(ii) The Code on Social Security 2020, (the ''code'') received Presidential assent on
28^th September 2020. However, the date on which the Code will come into effect
has not yet been notified. The Company will assess the impact of the Code in the
period(s) in which the provisions of the Code become effective.

Note No. : 43 Financial Risk Management Objectives and Policies

The Company''s financial liabilities comprise long term borrowings, short term borrowings,
capital creditors, trade and other payables. The main purpose of these financial liabilities
is to finance the Company''s operations. The Company''s financial assets include trade and
other receivables, cash and cash equivalents and deposits.

The Company is exposed to market risk and credit risk. The Company has a Risk management
policy and its management is supported by a Risk management committee that advises on
risks and the appropriate risk governance framework for the Company. The audit committee
provides assurance to the Company''s management that the Company''s risk activities are
governed by appropriate policies and procedures and that risks are identified, measured
and managed in accordance with the Company''s policies and risk objectives. The Board
of Directors reviews and agrees policies for managing each of these risks, which are
summarised below.

(i) Market Risk

Market risk is the risk that the fair value of future cash flows of a financial instrument will
fluctuate because of changes in market prices. Market risk comprises two types of risk:
currency risk and other price risk, such as commodity price risk and equity price risk.
Financial instruments affected by market risk include trade payables, trade receivables, etc.

a. Foreign Currency 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
exposure to the risk of changes in foreign exchange rates relates primarily to the
Company''s operating activities. The Company has a treasury department which
monitors the foreign exchange fluctuations on the continuous basis and advises the
management of any material adverse effect on the Company.

b. 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.

Interest Rate Sensitivity

The Company does not have any outstanding variable rate borrowing as at the
reporting date. Hence, interest rate sensitivity has not been disclosed.

(ii) Credit Risks

Credit risk is the risk that counterparty will not meet its obligations under a financial
instrument or customer contract, leading to a financial loss. The Company is exposed to
credit risk from its operating activities (primarily trade receivables).

The table below summarises the maturity profile of the Company financial liabilities:

(iii) Liquidity Risk

The Company''s objective is to maintain optimum levels of liquidity to meet its cash and
collateral requirements at all times. The Company relies on a mix of borrowings and
excess operating cash flows to meet its needs for funds. The current committed lines
of credit are sufficient to meet its short to medium/ long term expansion needs. The
Company monitors rolling forecasts of its liquidity requirements to ensure it has sufficient
cash to meet operational needs.

Trade Receivables

Customer credit risk is managed by the Company''s established policy, procedures and
control relating to customer credit risk management. Outstanding customer receivables
are regularly monitored and reconciled. Based on historical trend, industry practice and
the business environment in which the company operates, an impairment analysis is
performed at each reporting date for trade receivables. Based on above, the company
has made provision for expected credit loss of H50.04 Lakhs for the current financial
year (Previous Year H55.32 Lakhs).

Other Financial Assets

Credit Risk on cash and cash equivalent, deposits with the banks/financial institutions is
generally low as the said deposits have been made with the banks/financial institutions
who have been assigned high credit rating by international and domestic rating agencies.

45.1 In accordance with the ''Ind AS 33 - Earnings per Share'', the figures of Earnings Per
Share for the previous year ended March 31,2024 have been restated to give effect to
the sub division of shares and subsequent allotment of the bonus shares as detailed in
notes 17(h) of the standalone financial statements.

Note No. : 46 Lease
As Lessee

The Company has lease contracts for various items of buildings (including godowns) used
in its operations. The Company''s obligations under its lease are secured by lessor''s title to
the leased assets.

The Company also has certain leases of godowns with lease term of twelve months or less
with low value. The Company applies the ''short-term lease'' and '' lease of low-value assets''
recognition exemptions for these leases.

The carrying amount of right-of-use assets (Buildings) are disclosed in the Note 4 to the
Financial Statements.

Note No. :48 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 management
monitors the return on capital, as well as the level of dividends to equity shareholders.

The Company''s objective when managing capital are to:

(a) to maximise shareholders value and provide benefits to other stakeholders, and

(b) maintain an optimal capital structure to reduce the cost of capital.

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 interest-bearing
loans and borrowings that define capital structure requirements. The Company has complied
with these covenants and there have been no breaches in the financial covenants of any
interest-bearing loans and borrowings.

For the purpose of the Company''s capital management, capital includes issued equity share
capital and other equity reserves attributable to the equity holders.

Note No. :49 Other Statutory disclosures:

(i) No funds have been advanced or loaned or invested (either from borrowed funds
or share premium or any other sources or kind of funds) by the Company to or in
any other person(s) or entity(ies), including foreign entities ("Intermediaries") with the
understanding, whether recorded in writing or otherwise, that the Intermediary shall lend
or invest in party identified by or on behalf of the Company (Ultimate Beneficiaries).
The Company has not received any fund from any party(s) (Funding Party) with the
understanding that the Company shall whether, directly or indirectly lend or invest in other

persons or entities identified by or on behalf of the Company ("Ultimate Beneficiaries")
or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

(ii) The Company has no transactions with companies struck off under section 248 of the
Companies Act, 2013 or section 560 of the Companies Act, 1956.

(iii) No proceedings have been initiated on or are pending against the Company for holding
benami property under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988)
and Rules made thereunder.

(iv) The Company has not been declared as a wilful defaulter by any bank or financial
institution or government or any government authority.

(v) There has been no charges or satisfaction yet to be registered with ROC beyond the
statutory period.

(vi) The Company has not traded or invested in Crypto currency or Virtual Currency during
the financial year ended 31 March, 2025.

(vii) The Company uses an accounting software for maintaining its books of account which
has a feature of recording audit trail (edit log) facility and the same has operated
throughout the year for all relevant transactions recorded in the accounting software
at application level except at database level. Further, there is no instance of audit trail
feature being tampered in respect of the accounting softwares where such feature is
enabled. Additionally, the audit trail has been preserved by the Company as per the
statutory requirements for record retention to the extent it was enabled in previous year.

The accompanying notes are an integral part of the Standalone Financial Statements.

As per our report of even date attached.

For Singhi & Co For and on behalf of the Board

Chartered Accountants

F.R No. 302049E ^gr''

Deepak Jalan Rohit Deepak Jalan

Managing Director Whole Time Director

MJH***'' ''* DIN:00758600 DIN:06883731

(Ankit Dhelia)

Partner â

Membership No. 0691 78

Place of Signature:Kolkata N. K. Dujari Dipankar De

Dated: 07^th May, 2025 Director (Finance) & CFO Company Secretary

DIN:03160828 ACS 32112

Mar 31, 2024

a) There are no projects as on each reporting date which have exceeded the cost as compared to its original plan or where completion is overdue.

b) Capital Work-in-Progress As at 31.03.2024 mainly comprises of construction cost of Building and Plant & equipment of the Company. (As at 31.03.23 mainly comprises of construction cost of Building and Plant & equipment of the Company.)

(i) As required under section 186(4) of the Companies Act, 2013,the loan given shall be utilised for repayment of loans of existing lenders and bank debts to ensure encumbrance/pledge on fixed deposits of existing shareholder is released and not for any other purpose as is not permitted under the laws of Kenya.

Based on agreed terms mentioned in loan agreement dated 28th March, 2023, loan to subsidiary carries an interest rate of 9.50% p.a. and loan shall be repayable within five years from the disbursement.

b. Terms & rights attached to equity shares:

The Company has only one class of equity shares having a par value of H 10 per share. Each holder of equity shares is entitled to one vote per share. The holders of Equity Shares are entitled to receive dividends as declared from time to time. In the event of liquidation of the Company, the holders of equity shares will be entitled to receive remaining assets of the Company, after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders.

e. Aggregate number of share issued for consideration other than cash:

During the year 2019-20, 16,74,806 shares were issued pursuant to scheme of arrangement.

f. After the Reporting date, the Board of Directors has proposed a dividend of H5.00/- per equity share for the year ended 31st March 2024 (31st March ,2023 - H5.00/- per equity share). The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting and if approved it will lead to cash outflow amounting to H743.61 Lakhs.

g. The Company has neither issued bonus shares nor has bought back any shares during last 5 years.

h. No ordinary shares have been reserved per issue under options and contract/ commitments for the sale of shares/ disinvestment as at the Balance Sheet date.

i No securities convertible into Equity/ Preference shares have been issued by the Company during the year.

j No calls are unpaid by any directors/ officers of the Company during the year.

k. The Company does not have any Holding Company or Ultimate Holding Company.

Description of nature and purpose of each reserve

a. Securities Premium

Securities Premium represents the excess of the amount received over the face value of the shares. This reserve will be utilised in accordance with the provisions of the Companies Act, 2013.

b. General Reserve

General Reserve is created from time to time by way of transfer profits from retained earnings for appropriation purposes. General Reserve is created by a transfer from one component of equity to another and is not an item of other Comprehensive income.

c. Capital Reserve

Capital Reserve represents arisen on business combination on earlier years.

d. Retained Earning

Retained earnings are the profits that the Company has earned till date, less any transfers to general reserve, dividends or other distributions paid to investors. This includes remeasurement of defined benefit plans arising due to actuarial valuation of gratuity, that will not be routed through Statement of profit and loss subsequently.

Notes:

a) Working Capital facilities from Banks Sanctioned Limit = H5,000.00 Lakhs (Previous year: Sanctioned Limit = H6,400.00 Lakhs) are secured by first charge on current assets and second charge on moveable fixed assets of the Company and also secured by personal guarantee of Managing Director and Whole Time Director.

b) The Company is filing monthly statement for inventories and debtors with Banks (IDBI Bank, Yes Bank, HDFC Bank and CITI Bank ) for working capital facilities . The below is summary of reconciliation of quarterly statement filed with the banks and books of accounts :

The Quarterly statement submitted with Banks were prepared and filed before the completion of all financial statement closure which led to the above differences between the books of accounts and quarterly statement submitted with Banks based on provisional books of account. It includes mainly inventory and trade receivables reported by the Company to the banks.

A. Nature of goods and services

The Company is primarily engaged in the manufacturing of Writing instruments and stationeries and generates revenue from the sale of Pen and Refill and the same is only the reportable segment of the Company.

b) Defined Benefit Plan :

The Company has a defined benefit gratuity plan. Every employee who has completed five years or more of service is entitled to Gratuity on terms not less favourable than the provisions of The Payment of Gratuity Act, 1972. The scheme is funded with an insurance company.

The following tables summarise the components of net benefit expense recognised in the statement of profit and loss and the funded status and amounts recognised in the balance sheet for the Post - retirement benefit plans.

VI. Basis used to determine the Expected Rate of Return on Plan Assets:

The basis used to determine overall expected rate of return on plan assets is based on the current portfolio of assets, investment strategy and market scenario. In order to protect the capital and optimize returns within acceptable risk parameters, the plan assets are well diversified.

VII. Basis of estimates of rate of escalation in salary

The estimates of rate of escalation in salary considered in actuarial valuation, take into account inflation, seniority, promotion and other relevant factors including supply and demand in the employment market. The above information is certified by LIC.

Sensitivities due to mortality and withdrawals rate are not material and hence impact of changes is not calculated.

Sensitivity analysis above have been determine based on a method that extrapolates the impact on defined benefit obligation as a result of reasonable changes in key assumptions occurring at the end of the reporting period.

X. Risk Exposure

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

ii) Salary Inflation Risk : Higher than expected increase in salary will increase the defined benefit obligation.

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

XII. Other Disclosures

1 The Gratuity and Provident Fund Expenses have been recognized under "Contribution to provident and other funds" under Note no. 31.

2 Expected employers'' contribution for next year is not available and therefore, not disclosed.

Note No. :35 Commitments and Contingencies			(H in Lakhs)
Particulars	31^s1	As at March, 2024	As at 31^st March, 2023
a) Capital and Other Commitments:
i) Estimated amount of Contracts remaining to be executed on Capital Account and not provided for		1,195.91	1,164.93
ii) Advance paid against above (Refer Note No. 10)		566.40	468.34
b) Contingent Liabilities:
(i) Demand/Claims by various Government Authorities and others not acknowledged as debts:
Custom Duty (Amount deposited under appeal H27.49 Lacs)		363.79	363.79
Entry Tax		170.70	170.70

The amounts shown in (b) above represent the best possible estimates arrived at on the basis of available information. The uncertainties and timing of the cash flows are dependent on the outcome of the different legal processes which have been invoked by the Company or the claimants as the case may be and therefore cannot be estimated accurately.

In the opinion of the management, no provision is considered necessary for the disputes mentioned above on the grounds that there are fair chances of successful outcome of appeals.

The Company does not expect any reimbursements in respect of the above contingent liabilities.

(ii) The Code on Social Security 2020, (the ''code'') received Presidential assent on 28th September 2020. However, the date on which the Code will come into effect has not yet been notified. The Company will assess the impact of the Code in the period(s) in which the provisions of the Code become effective.

III) No amount has been written back / written off during the year in respect of due to / from related parties.

IV) The amount due from related parties are good and hence no provision for doubtful debts in respect of dues from such related parties is required.

V) The transactions with related parties have been entered at an amount, which are not materially different from that on normal commercial terms.

VI) The remuneration to the Key Management Personnel and relatives of the Key Management Personnel does not include provision made for Gratuity as it is determined on an actuarial basis for the Company as a whole.

The carrying amount of financial assets and financial liabilities measured at amortised cost in the financial statements are a reasonable approximation of their fair values since the Company does not anticipate that the carrying amounts would be significantly different from the values that would eventually be received or settled.

Note No. : 42 Financial Risk Management Objectives and Policies

The Company''s financial liabilities comprise long term borrowings, short term borrowings, capital creditors, trade and other payables. The main purpose of these financial liabilities is to finance the Company''s operations. The Company''s financial assets include trade and other receivables, cash and cash equivalents and deposits.

The Company is exposed to market risk and credit risk. The Company has a Risk management policy and its management is supported by a Risk management committee that advises on risks and the appropriate risk governance framework for the Company. The audit committee provides assurance to the Company''s management that the Company''s risk activities are governed by appropriate policies and procedures and that risks are identified, measured and managed in accordance with the Company''s policies and risk objectives. The Board of Directors reviews and agrees policies for managing each of these risks, which are summarised below.

(i) Market Risk

Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk comprises two types of risk: currency risk and other price risk, such as commodity price risk and equity price risk. Financial instruments affected by market risk include trade payables, trade receivables, etc. a. Foreign Currency 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 exposure to the risk of changes in foreign exchange rates relates primarily to the Company''s operating activities. The Company has a treasury department which monitors the foreign exchange fluctuations on the continuous basis and advises the management of any material adverse effect on the Company.

Foreign Currency Sensitivity

The following table demonstrates the sensitivity to a reasonably possible change in foreign currency exchange rates, with all other variables held constant. The impact on the Company profit before tax is due to changes in the fair value of assets and liabilities.

(ii) Credit Risks

Credit risk is the risk that counterparty will not meet its obligations under a financial instrument or customer contract, leading to a financial loss. The Company is exposed to credit risk from its operating activities (primarily trade receivables).

Trade Receivables

Customer credit risk is managed by the Company''s established policy, procedures and control relating to customer credit risk management. Outstanding customer receivables are regularly monitored and reconciled. Based on historical trend, industry practice and the business environment in which the company operates, an impairment analysis is performed at each reporting date for trade receivables. Based on above, the company has made provision for expected credit loss of H55.32 Lakhs for the current financial year (Previous Year H96.53 Lakhs).

Other Financial Assets

Credit Risk on cash and cash equivalent, deposits with the banks/financial institutions is generally low as the said deposits have been made with the banks/financial institutions who have been assigned high credit rating by international and domestic rating agencies.

(iii) Liquidity Risk

The Company''s objective is to maintain optimum levels of liquidity to meet its cash and collateral requirements at all times. The Company relies on a mix of borrowings and excess operating cash flows to meet its needs for funds. The current committed lines of credit are sufficient to meet its short to medium/ long term expansion needs. The Company monitors rolling forecasts of its liquidity requirements to ensure it has sufficient cash to meet operational needs.

b. 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.

Interest Rate Sensitivity

The Company does not have any outstanding variable rate borrowing as at the reporting date. Hence, interest rate sensitivity has not been disclosed.

Note No. : 43 Segment reporting

There is only one primary business segment i.e. "Writing Instrument and Stationary" and hence no separate segment information is disclosed in this financial.

Note No. : 45 Lease As Lessee

The Company has lease contracts for various items of buildings (including godowns) used in its operations. The Company''s obligations under its lease are secured by lessor''s title to the leased assets.

The Company also has certain leases of godowns with lease term of twelve months or less with low value. The Company applies the ''short-term lease'' and '' lease of low-value assets'' recognition exemptions for these leases.

Notes:

(a) Change in Debt Service Coverage Ratio as compared to the preceding year is due to decrease in EBITDA and increase in Lease payments.

Note No. :4 7 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 management monitors the return on capital, as well as the level of dividends to equity shareholders.

The Company''s objective when managing capital are to:

(a) to maximise shareholders value and provide benefits to other stakeholders, and

(b) maintain an optimal capital structure to reduce the cost of capital.

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 interestbearing loans and borrowings that define capital structure requirements. The Company has complied with these covenants and there have been no breaches in the financial covenants of any interest-bearing loans and borrowings.

For the purpose of the Company''s capital management, capital includes issued equity share capital and other equity reserves attributable to the equity holders.

Note No. :48 The Company had entered into an agreement on 05th April, 2023 for acquisition of 60% shareholding of Gelx Industries Ltd, Kenya for which approval by Competition Authority of Kenya was received during the year. Post completion of the acquisition formalities, Gelx Industries Limited, Kenya has become a subsidiary of the company w.e.f. 3rd October, 2023.

Note No. :49 The Company had incorporated as entity in the name of ""Morris Linc Private Limited on 28th June, 2023. The company entered into a Joint Venture Agreement dated 23 rd October, 2023 with Morris Co. Ltd. ("Morris") via the aforesaid company to carry out manufacture and sale of anti-ink dry marker with automatic air tight sealing mechanism in a Profit Share Ratio of 50.01 : 49.99 for the Company & Morris respectively.

Note No. :50 Other Statutory disclosures:

(i) No funds have been advanced or loaned or invested (either from borrowed funds or share premium or any other sources or kind of funds) by the Company to or in any other person(s) or entity(ies), including foreign entities ("Intermediaries") with the understanding, whether recorded in writing or otherwise, that the Intermediary shall lend or invest in party identified by or on behalf of the Company (Ultimate Beneficiaries). The Company has not received any fund from any party(s) (Funding Party) with the understanding that the Company shall whether, directly or indirectly lend or invest in other persons or entities identified by or on behalf of the Company ("Ultimate Beneficiaries") or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

(ii) The Company has no transactions with companies struck off under section 248 of the Companies Act, 2013 or section 560 of the Companies Act, 1956.

(iii) No proceedings have been initiated on or are pending against the Company for holding benami property under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and Rules made thereunder.

(iv) The Company has not been declared as a wilful defaulter by any bank or financial institution or government or any government authority.

(v) There has been no charges or satisfaction yet to be registered with ROC beyond the statutory period.

(vi) The Company has not traded or invested in Crypto currency or Virtual Currency during the financial year ended 31 March, 2024.

(vii) As per the requirements of rule 3(1) of the Companies (Accounts) Rules 2014, the Company uses only such accounting software for maintaining its books of account that have a feature of recording audit trail of each and every transaction creating an edit log of each change made in the books of account along with the date when such changes were made within such accounting software. This feature of recording audit trail has operated throughout the year and was not disabled, tampered with during the year, except for the database and application layer in payroll software situations where in during the year the audit trail feature was not enabled.

The accompanying notes are an integral part of the Standalone Financial Statements.

As per our report of even date attached.

Mar 31, 2023

q. Provisions and Contingent Liabilities

Provisions are recognised when the Company has a present obligation(legal or constructive) as a result of a past event, it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation. When the company expects some or all of a provision to be reimbursed, the reimbursement is recognized as a separate asset, but only when the reimbursement is certain. The expense relating to a provision is presented in the statement of profit and loss net of any reimbursement.

Contingent liabilities are disclosed when the Company has a possible obligation or a present obligation and it is probable that an outflow of resources embodying economic benefits will not be required to settle the obligation. The Company does not recognize a contingent liability but discloses its existence in the financial statements.

.5 Significant Accounting Judgements, Estimates and Assumptions

The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the reported amounts of revenues, expenses, assets and liabilities, and the accompanying disclosures, and the disclosure of contingent liabilities. Uncertainty about these assumptions and estimates could result in outcomes that require a material adjustment to the carrying amount of assets or liabilities affected in future periods.

Estimates and Assumptions

The key assumptions concerning the future and other key sources of estimation uncertainty at the end of the reporting period that may have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year, are described below.

a) Defined Benefit Plans

The cost of the employment benefits such as gratuity, leave and provident fund obligation are determined using actuarial valuations. An actuarial valuation involves making various assumptions that may differ from actual developments in the future. These include the determination of the discount rate, future salary increases and mortality rates. Due to the complexities involved in the valuation and its long-term nature, a defined benefit obligation is highly sensitive to changes in these assumptions. All assumptions are reviewed at each reporting date.

b) Estimated useful life of Property, plant and equipment

PPE represent a significant proportion of the asset base of the Company. The charge in respect of periodic depreciation is derived after determining an estimate of an asset''s expected useful life and the expected residual value at the end of its life. The useful lives and residual value of the asset are determined by the management when the asset is acquired and reviewed periodically including at each financial year end. The lives are based on historical experience with similar assets as well as anticipation of future events, which may impact their lives, such as change in technology.

c) Claims, Provisions and Contingent Liabilities

The Group has ongoing litigations with various regulatory authorities and third parties. Where an outflow of funds is believed to be probable and a reliable estimate of the outcome of the dispute can be made based on management''s assessment of specific circumstances of each dispute and relevant external advice, management provides for its best estimate of the liability. Such accruals are by nature complex and can take number of years to resolve and can involve estimation uncertainty.

d) Significant judgments when applying Ind AS 115

Revenue is recognised upon transfer of control of promised products or services to customers in an amount that reflects the consideration which the Company expects to receive in exchange for those products or services. Revenue is measured based on the transaction price, which is the consideration, adjusted for volume discounts, price concessions and incentives, if any, as specified in the contract with the customer. The Company exercises judgment in determining whether the performance obligation is satisfied at a point in time or over a period of time. The Company considers indicators such as how customer consumes benefits as services are rendered or who controls the asset as it is being created or existence of enforceable right to payment for performance to date and alternate use of such product or service, transfer of significant risks and rewards to the customer, acceptance of delivery by the customer, etc.

e) Allowances for Doubtful Debts:

The Company makes allowances for doubtful debts through appropriate estimations of the amount based on the ageing of trade receivables. The identification of doubtful debts requires use of judgment and estimates. Where the expectation is different from the original estimate, such difference will impact the carrying value of the trade and other receivables and doubtful debts expenses in the period in which such estimate has been changed.

f) Extension and Termination Option in Leases:

Extension and termination options are included in many of the leases. In determining the lease term the management considers all facts and circumstances that create an economic incentive to exercise an extension option, or not exercise a termination option.

This assessment is reviewed if a significant event or a significant change in circumstances occurs which affects this assessment and that is within the control of the Company.

1.6 Recent accounting pronouncement

Ministry of Corporate Affairs ("MCA") notifies new standard or amendments to the existing standards under Companies (Indian Accounting Standards) Rules as issued from time to time. On March 23, 2022, MCA amended the Companies (Indian Accounting Standards) Amendment Rules, 2023, applicable from April 1st, 2023, as below:

â¢ Ind AS 1 - Material accounting policies -* The amendments mainly related to shifting of disclosure of erstwhile "significant accounting policies" in the notes to the financial statements to material accounting policy information requiring companies to reframe their accounting policies to make them more "entity specific. This amendment aligns with the "material" concept already required under International Financial Reporting Standards (IFRS).

â¢ Ind AS 8 - Definition of accounting estimates -* The amendments specify definition of ''change in accounting estimate'' replaced with the definition of ''accounting estimates''.

â¢ Ind AS 12 - Annual Improvements to Ind AS (2021) -* The amendment clarifies that in cases of transactions where equal amounts of assets and liabilities are recognised on initial recognition, the initial recognition exemption does not apply. Also, If a company has not yet recognised deferred tax asset and deferred tax liability on right-of-use assets and lease liabilities or has recognised deferred tax asset or deferred tax liability on net basis, that company shall have to recognise deferred tax assets and deferred tax liabilities on gross basis based on the carrying amount of right-of-use assets and lease liabilities existing at the beginning of 1 April 2022.

Based on preliminary assessment, the company does not expect the amendments listed above to have any significant impact in its financial statements.

e. Aggregate number of share issued for consideration other than cash:

During the previous year 2019-20, 16,74,806 shares were issued pursuant to scheme of arrangement.

f. After the Reporting date, the Board of Directors has proposed a dividend of C5.00/- per equity share (31st March, 2022 - C 1.80/- per equity share). The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting and if approved it will lead to cash outflow amounting to C743.61 Lakhs.

g. The Company has neither issued bonus shares nor has bought back any shares during last 5 years.

h. No ordinary shares have been reserved per issue under options and contract/ commitmemts for the sale of shares/ disinvestment as at the Balance Sheet date.

i No securities convertible into Equity/ Preference shares have been issued by the Company during the year. j No calls are unpaid by any directors/ officers of the Company during the year. k. The Company does not have any Holding Company or Ultimate Holding Company.

a. Securities Premium

Securities Premium represents the excess of the amount received over the face value of the shares. This reserve will be utilised in accordance with the provisions of the Companies Act, 2013.

b. General Reserve

General Reserve is created from time to time by way of transfer profits from retained earnings for appropriation purposes. General Reserve is created by a transfer from one component of equity to another and is not an item of other Comprehensive income.

c. Capital Reserve

Capital Reserve represents arisen on business combination on earlier years.

d. Retained Earning

Retained earnings are the profits that the Company has earned till date, less any transfers to general reserve, dividends or other distributions paid to investors. This includes remeasurement of defined benefit plans arising due to acturial valuation of gratuity, that will not be routed through Statement of profit and loss subsequently.

Notes:

a) Working Capital facilities from Banks (Sanctioned Limit = C6400.00 Lakhs) are secured by first charge on current assets and second charge on moveable fixed assets of the Company and also secured by personal guarantee of Managing Director and Whole Time Director. Loan including Packing credit foreign currency repayable on demand carries interest@ 2.29% to 9.90 % p.a. (31st March, 2022 2.53% to 9.00% p.a.)

b) There is no default on the Balance Sheet date in the repayment of borrowings and interest thereon.

c) The Company is filing monthly statement for inventories and debtors with Banks (IDBI Bank, Yes Bank, HDFC Bank and CITI Bank ) for working capital facilities . The below is summary of reconciliation of quarterly statement filed with the banks and books of accounts :

b) Defined Benefit Plan :

The Company has a defined benefit gratuity plan. Every employee who has completed five years or more of service is entitled to Gratuity on terms not less favorable than the provisions of The Payment of Gratuity Act, 1972. The scheme is funded with an insurance company.

The following tables summarise the components of net benefit expense recognised in the statement of profit and loss and the funded status and amounts recognised in the balance sheet for the Post -retirement benefit plans.

X. Risk Exposure

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

ii) Salary Inflation Risk : Higher than expected increase in salary will increase the defined benefit obligation.

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

Note No. 41: Financial Risk Management Objectives and Policies

The Company''s financial liabilities comprise long term borrowings, short term borrowings, capital creditors, trade and other payables. The main purpose of these financial liabilities is to finance the Company''s operations. The Company''s financial assets include trade and other receivables, cash and cash equivalents and deposits.

The Company is exposed to market risk and credit risk. The Company has a Risk management policy and its management is supported by a Risk management committee that advises on risks and the appropriate risk governance framework for the Company. The audit committee provides assurance to the Company''s management that the Company''s risk activities are governed by appropriate policies and procedures and that risks are identified, measured and managed in accordance with the Company''s policies and risk objectives. The Board of Directors reviews and agrees policies for managing each of these risks, which are summarised below.

(i) Market Risk

Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk comprises two types of risk: currency risk and other price risk, such as commodity price risk and equity price risk. Financial instruments affected by market risk include trade payables, trade receivables, etc.

a. Foreign Currency 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 exposure to the risk of changes in foreign exchange rates relates primarily to the Company''s operating activities. The Company has a treasury department which monitors the foreign exchange fluctuations on the continuous basis and advises the management of any material adverse effect on the Company.

Interest Rate Sensitivity has been calculated assuming the borrowings outstanding at the reporting date have been outstanding for the entire reporting period and all other variables remain constant.

(ii) Credit Risks

Credit risk is the risk that counterparty will not meet its obligations under a financial instrument or customer contract, leading to a financial loss. The Company is exposed to credit risk from its operating activities (primarily trade receivables).

Trade Receivables

Customer credit risk is managed by the Company''s established policy, procedures and control relating to customer credit risk management. Outstanding customer receivables are regularly monitored and reconciled. Based on historical trend, industry practice and the business environment in which the company operates, an impairment analysis is performed at each reporting date for trade receivables. Based on above, the company has made provision for doubtful debts of C96.53 Lakhs for the current financial year (Previous Year C89.12 Lakhs).

Other Financial Assets

Credit Risk on cash and cash equivalent, deposits with the banks/financial institutions is generally low as the said deposits have been made with the banks/financial institutions who have been assigned high credit rating by international and domestic rating agencies.

(iii) Liquidity Risk

The Company''s objective is to maintain optimum levels of liquidity to meet its cash and collateral requirements at all times. The Company relies on a mix of borrowings and excess operating cash flows to meet its needs for funds. The current committed lines of credit are sufficient to meet its short to medium/ long term expansion needs. The Company monitors rolling forecasts of its liquidity requirements to ensure it has sufficient cash to meet operational needs.

Note No. 42: Segment reporting

There is only one primary business segment i.e. "Writing Instrument and Stationary" and hence no separate segment information is disclosed in this financial.

Geographical segments

The Company primarily operates in India and therefore analysis of geographical segment is demonstrated into Indian and overseas operation as under:

Note No. 44: Lease

As Lessee

The Company has lease contracts for various items of buildings (including godowns) used in its operations. The Company''s obligations under its lease are secured by lessor''s title to the leased assets.

The Company also has certain leases of godowns with lease term of twelve months or less with low value. The Company applies the ''short-term lease'' and '' lease of low-value assets'' recognition exemptions for these leases.

The carrying amount of right-of-use assets (Buildings) are disclosed in the Note 4 to the Financial Statements.

Notes:

(a) Change in Debt Equity Ratio as compared to the preceding year is due to repayment of short term borrowings.

(b) Change in Debt Service Coverage Ratio as compared to the preceding year is due to earnings from operations and reduction in finance cost.

(d) Change in Trade Receivable Turnover Ratio as compared to the preceding year is due to increase in sale of goods.

(e) Change in Net Profit Ratio as compared to the preceding year is due to higher earnings from operations.

(f) Change in Return on Capital Employed as compared to the preceding year is due to due to higher earnings from operations and reduction in debts.

Note No. 46: 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 management monitors the return on capital, as well as the level of dividends to equity shareholders.

The Company''s objective when managing capital are to:

(a) to maximise shareholders value and provide benefits to other stakeholders, and

(b) maintain an optimal capital structure to reduce the cost of capital.

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 interest-bearing loans and borrowings that define capital structure requirements. The Company has complied with these covenants and there have been no breaches in the financial covenants of any interest-bearing loans and borrowings.

For the purpose of the Company''s capital management, capital includes issued equity share capital and other equity reserves attributable to the equity holders.

Note No. 47:

The Company had entered in to an agreement on 05.04.2023 for acquisition of 60% shareholding of

Gelx Industries Ltd., Kenya, subject to approval by Competition Authority of Kenya, which is awaited.

Note No. 48: Other Statutory disclosures:

(i) No funds have been advanced or loaned or invested (either from borrowed funds or share premium or any other sources or kind of funds) by the Company to or in any other person(s) or entity(ies), including foreign entities ("Intermediaries") with the understanding, whether recorded in writing or otherwise, that the Intermediary shall lend or invest in party identified by or on behalf of the Company (Ultimate Beneficiaries). The Company has not received any fund from any party(s) (Funding Party) with the understanding that the Company shall whether, directly or indirectly lend or invest in other persons or entities identified by or on behalf of the Company ("Ultimate Beneficiaries") or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

(ii) The Company has no transactions with companies struck off under section 248 of the Companies Act, 2013 or section 560 of the Companies Act, 1956.

(iii) No proceedings have been initiated on or are pending against the Company for holding benami property under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and Rules made thereunder.

(iv) The Company has not been declared as a wilful defaulter by any bank or financial institution or government or any government authority.

(v) There has been no charges or satisfaction yet to be registered with ROC beyond the statutory period.

(vi) The Company has not traded or invested in Crypto currency or Virtual Currency during the financial year ended 31 March, 2023.

Note No. 49:

The previous year''s figures have been regrouped, rearranged and reclassified wherever necessary.

The accompanying notes are an integral part of the Financial Statements.

As per our report of even date attached.

For Singhi & Co. For and on behalf of the Board

Chartered Accountants

F.R No. 302049E DeepakJalan Rohit Deepak Jalan

'' QtJiS Managing Director Whole Time Director

DIN:00758600 DIN:06883731

(Ankit Dhelia) .

Partner

Membership No. 069178 N. K. Dujari Kaushik Raha

Place of Signature:Kolkata Director (Finance) & CFO Company Secretary

Dated: 12th May, 2023 DIN:03160828 FCS 12136

Mar 31, 2018

1.1 Statement of Compliance

These financial statements have been prepared in accordance with Indian Accounting Standards (Ind AS) as per the Companies (Indian Accounting Standards) Rules, 2015 notified under Section 133 of the Companies Act, 2013 (âActâ) and other relevant provisions of the Act.

For all periods up to and including the year ended 31st March, 2017, the Company had prepared its financial statements in accordance with accounting standards notified under the section 133 of the Companies Act 2013, read together with Rule 7 of the Companies (Accounts) Rules, 2014 [Indian GAAP].

These financial statements for the year ended 31st March, 2018 are the first financial statements, the Company has prepared in accordance with Indian Accounting Standards (âInd ASâ) consequent to the notification of The Companies (Indian Accounting Standards) Rules, 2015 (the Rules) issued by the MCA. Further, in accordance with the Rules, the Company has restated its Balance Sheet as at 1st April, 2016 and financial statements for the year ended and as at 31st March, 2017 also as per Ind AS. For preparation of opening balance sheet under Ind AS as at 1st April, 2016, the Company has availed exemptions and first time adoption policies in accordance with Ind AS 101 âFirst-time Adoption of Indian Accounting Standardsâ, the details of which have been explained thereof in Note 31.

The financial statements are authorised for issue by the Board of Directors of the Company at their meeting held on 30th May 2018.

Details of the Companyâs accounting policies are included in Note 1.4

1.2 Functional and Presentation currency

These financial statements are presented in Indian Rupees (H), which is also the Companyâs functional currency. All amounts have been rounded off to the nearest lakhs, unless otherwise indicated.

1.3 Basis of Measurement

The financial statements have been prepared on historical cost convention on the accrual basis, except for the following items:

Fair value is the price that would be received on the sale of an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date under current market conditions, regardless of whether that price is directly observable or estimated using another valuation technique. In determining the fair value of an asset or a liability, the Company takes into account the characteristics of the asset or liability if market participants would take those characteristics into account when pricing the asset or liability at the measurement date.

1.4 Significant Accounting Judgments, Estimates and Assumptions

The preparation of the financial statements requires management to make judgments, estimates and assumptions that affect the reported amounts of revenues, expenses, assets and liabilities, and the accompanying disclosures, and the disclosure of contingent liabilities. Uncertainty about these assumptions and estimates could result in outcomes that require a material adjustment to the carrying amount of assets or liabilities affected in future periods.

Estimates and Assumptions

a) Defined Benefit Plans

b) Estimated useful life of Property, plant and equipment

PPE represent a significant proportion of the asset base of the Company. The charge in respect of periodic depreciation is derived after determining an estimate of an assetâs expected useful life and the expected residual value at the end of its life. The useful lives and residual value of the asset are determined by the management when the asset is acquired and reviewed periodically including at each financial year end. The lives are based on historical experience with similar assets as well as anticipation of future events, which may impact their lives, such as change in technology.

c) Claims, Provisions and Contingent Liabilities:

The Group has ongoing litigations with various regulatory authorities and third parties. Where an outflow of funds is believed to be probable and a reliable estimate of the outcome of the dispute can be made based on managementâs assessment of specific circumstances of each dispute and relevant external advice, management provides for its best estimate of the liability. Such accruals are by nature complex and can take number of years to resolve and can involve estimation uncertainty.

(a) No trade or other receivables are due from directors or other officers of the Company either severally or jointly with any other person. Further no trade or other receivables are due from firms or private companies respectively in which any director is a partner, a director or a member.

(b) Trade Receivables are hypothecated against borrowings (refer note 18)

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 shares is entitled to one vote per share. The holders of Equity Shares are entitled to receive dividends as declared from time to time. In the event of liquidation of the Company, the holders of equity shares will be entitled to receive remaining assets of the Company, after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders.

After the Reporting date, the Board of Directors has proposed a dividend of RS. 1.50/- per equity share (31st March, 2017 RS. 3/- per equity share). The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting and if approved it will lead to cash outflow amounting to RS. 267.38 lakhs including corporate dividend tax of RS. 45.59 lakhs.

Description of nature and purpose of each reserve :-

a. Securities Premium

Securities Premium represents the excess of the amount received over the face value of the shares. This reserve will be utilised in accordance with the provisions of the Companies Act, 2013.

b. General Reserve

General Reserve is created from time to time by way of transfer profits from retained earnings for appropriation purposes. General Reserve is created by a transfer from one component of equity to another and is not an item of other Comprehensive income.

a. Nature of securities :

Term Loan from Bank is secured against exclusive charge on the fixed assets (movable & immovable) of the plant located in Umbergaon, Gujarat, second charge on current assets of the Company and personal guarantee of some of the directors of the Company.

b. Terms of Repayment of Loans:

Repayable in 20 quarterly installments of RS. 90.00 lakhs as per terms of the agreement. The last installment is due in the month of October, 2022.

c. Interest

1.1% over base rate which presently is 9.40% p.a. at monthly rests.

Loan from Banks are secured by first charge on current assets and second charge on movable fixed assets of the Company and also guaranteed by Managing Director and Whole Time Director. Loan repayable on demand carries interest@ 9.00% to 9.40% (31st March, 2017 9.30 % to 10.75%)

E. Footnotes to the above reconciliation

a. Deferred Tax

Indian GAAP requires deferred tax accounting using the income statement approach, which focuses on differences between taxable profits and accounting profits for the period. Ind AS 12 requires entities to account for deferred taxes using the balance sheet approach, which focuses on temporary differences between the carrying amount of an asset or liability in the balance sheet and its tax base. The application of Ind AS 12 approach has resulted in recognition of deferred tax on new temporary differences which was not required under Indian GAAP.

In addition, the various transitional adjustments lead to temporary differences. Deferred tax adjustments are recognised in correlation to the underlying transaction either in retained earnings or a separate component of equity.

b. Re-Classifications

The Company has done the following reclassifications as per the requirements of Ind AS:

i) Assets / liabilities which do not meet the definition of financial asset / financial liability have been reclassified to other asset / liability.

ii) Re-Measurement gain/loss on employee defined benefit plans are re-classified from statement of profit and loss to OCI.

iii) The Company has re-classified unpaid dividend balance from cash and cash equivalents to other bank balances.

iv) Excise duty on sales was earlier netted off with Sales, has now been re-classified to other expenses.

v) Sales related expenses was earlier included in Other Expenses, has now been netted off with Sales.

vi) Trade deposits where there is no unconditional right to defer the payment has been disclosed under current financial liability.

c. Dividend

Under Indian GAAP, proposed dividends including Dividend Distribution Taxes (DDT) are recognised as a liability in the period to which they relate, irrespective of when they are declared. Under Ind AS, a proposed dividend is recognised as a liability in the period in which it is declared by the Company (usually when approved by shareholders in a general meeting) or paid.

âIn case of the Company, the declaration of dividend occurs after period end. Therefore, the liability recorded for dividend has been de-recognised against retained earnings on 1st April, 2016 and recognised in year ended 31st March, 2017.â

d. Other Comprehensive Income

Under Indian GAAP, the Company has not presented other comprehensive income (OCI) separately. Hence, it has reconciled Indian GAAP profit or loss to profit or loss as per Ind AS. Further, Indian GAAP profit or loss is reconciled to total comprehensive income as per Ind AS.

e. Interest Income

The previous GAAP required the recognition of revenue from interest on time proportion basis. However, Ind AS requires interest on financial assets to be recognized using the effective interest rate method.

f. Security Deposit

Initially under IGAAP, security deposit paid against Rent is valued at its carrying amount. Pursuant to adoption of Ind AS, Security deposit paid to the lessor at fair value and subsequently at amortised cost as per Ind AS 109.

g. Ind AS 101 Exemptions Applied

A. Optional exemptions availed

(a) Property, plant and equipment and intangible assets

As per Ind AS 101 an entity may elect to:

(i) measure an item of property, plant and equipment at the date of transition at its fair value and use that fair value as its deemed cost at that date.

(ii) use a previous GAAP revaluation of an item of property, plant and equipment at or before the date of transition as deemed cost at the date of revaluation, provided the revaluation was, at the date of revaluation, broadly comparable to:

- fair value;

- or cost or depreciated cost under Ind AS adjusted to reflect.

The elections under (i) and (ii) above are also available for intangible assets that meets the recognition criteria in Ind AS 38, Intangible Assets, (including reliable measurement of original cost); and criteria in Ind AS 38 for revaluation (including the existence of an active market).

(iii) use carrying values of property, plant and equipment and intangible assets as on the date of transition to Ind AS (which are measured in accordance with previous GAAP and after making adjustments relating to decommissioning liabilities prescribed under Ind AS 101) if there has been no change in its functional currency on the date of transition.

As permitted by Ind AS 101, the Company has elected to continue with carrying value as recognized in its Indian GAAP Financial Statements as deemed cost at the transition date, viz., 1st April, 2016. The Company has elected to continue with carrying value for intangible assets (computer softwares) as recognized under the previous GAAP as deemed cost as at the transition date. . There is no decommissioning liabilities to be incurred by the Company relating to property, plant and equipment.

The Company has elected to avail of above exemption.

(b) The Company has no equity investments on the date of transition i.e. 1st April 2016.

(c) Fair value measurement of financial assets or liabilities at initial recognition

The Company has applied the requirements of Ind AS 109, âFinancial Instruments: Recognition and Measurementâ, wherever applicable.

B. Mandatory exceptions

(a) Estimates

As per Ind AS 101, an entityâs estimates in accordance with Ind AS at the date of transition to Ind AS at the end of the comparative period presented in the entityâs first Ind AS financial statements, as the case may be, should be consistent with estimates made for the same date in accordance with the previous GAAP unless there is objective evidence that those estimates were in error.

However, the estimates should be adjusted to reflect any differences in accounting policies.

As per Ind AS 101, where application of Ind AS requires an entity to make certain estimates that were not required under previous GAAP, those estimates should be made to reflect conditions that existed at the date of transition (for preparing opening Ind AS balance sheet) or at the end of the comparative period (for presenting comparative information as per Ind AS).

The Companyâs estimates under Ind AS are consistent with the above requirement.

(b) De-recognition of financial assets and liabilities

As per para B2 of Ind AS 101, an entity should apply the de-recognition requirements in Ind AS 109, âFinancial Instrumentsâ, prospectively for transactions occurring on or after the date of transition to Ind AS. However, para B3 gives an option to the entity to apply the de-recognition requirements from a date of its choice if the information required to apply Ind AS 109 to financial assets and financial liabilities de-recognised as a result of past transactions was obtained at the initially accounting for those transactions. The company has elected to apply the de-recognition provisions of Ind AS 109 prospectively from the date of transition to Ind AS.

(c) Classification and measurement of financial assets

Ind AS 101 requires an entity to assess classification of financial assets on the basis of facts and circumstances existing as on the date of transition. Further, the standard permits measurement of financial assets accounted at amortised cost based on facts and circumstances existing at the date of transition if retrospective application is impracticable.

Accordingly, the Company has determined the classification of financial assets based on facts and circumstances that exist on the date of transition. Measurement of the financial assets accounted at amortised cost has been done retrospectively except where the same is impracticable.

Note No. : 2. Gratuity and Other Post Employment Benefit Plans

a) Defined Contribution Plan :

Employee benefits in the form of Provident Fund and Employee State Insurance Scheme are considered as defined contribution plan and the contributions are made in accordance with the relevant statute and are recognized as an expense when employees have rendered service entitling them to the contributions. The contribution to defined contribution plan, recognized as expense for the year is as under:

b) Defined Benefit Plan :

The following tables summarise the components of net benefit expense recognised in the statement of profit and loss and the funded status and amounts recognised in the balance sheet for the Post - retirement benefit plans.

VI. Basis used to determine the Expected Rate of Return on Plan Assets:

VII. Basis of estimates of rate of escalation in salary

Sensitivities due to mortality and withdrawals rate are not material and hence impact of changes is not calculated.

Sensitivity analysis above have been determine based on a method that extrapolates the impact on defined benefit obligation as a result of reasonable changes in key assumptions occurring at the end of the reporting period.

XI. Other Disclosures

1. The Gratuity and Provident Fund Expenses have been recognized under âContribution to provident and other fundsâ under Note no. 28.

2. Expected employersâ contribution for next year is not available and therefore, not disclosed.

The amounts shown in (b) above represent the best possible estimates arrived at on the basis of available information. The uncertainties and timing of the cash flows are dependent on the outcome of the different legal processes which have been invoked by the Company or the claimants as the case may be and therefore cannot be estimated accurately.

In the opinion of the management, no provision is considered necessary for the disputes mentioned above on the grounds that there are fair chances of successful outcome of appeals.

The Company does not expect any reimbursements in respect of the above contingent liabilities.

Note No. : 3. Based on the information/documents available with the Company, information as per the requirement of section 22 of the Micro, Small and Medium Enterprises Development Act, 2006 are as follows:

III) No amount has been written back / written off during the year in respect of due to / from related parties.

IV) The amount due from related parties are good and hence no provision for doubtful debts in respect of dues from such related parties is required.

V) The transactions with related parties have been entered at an amount, which are not materially different from that on normal commercial terms.

VI) Figure in brackets pertains to previous year.

Note No. : 4. Financial Risk Management Objectives and Policies

The Companyâs financial liabilities comprise long term borrowings, short term borrowings, capital creditors, trade and other payables. The main purpose of these financial liabilities is to finance the Companyâs operations. The Companyâs financial assets include trade and other receivables, cash and cash equivalents and deposits.

The Company is exposed to market risk and credit risk. The Company has a Risk management policy and its management is supported by a Risk management committee that advises on risks and the appropriate risk governance framework for the Company. The audit committee provides assurance to the Companyâs management that the Companyâs risk activities are governed by appropriate policies and procedures and that risks are identified, measured and managed in accordance with the Companyâs policies and risk objectives. The Board of Directors reviews and agrees policies for managing each of these risks, which are summarised below.

(i) Market Risk

Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk comprises two types of risk: currency risk and other price risk, such as commodity price risk and equity price risk. Financial instruments affected by market risk include trade payables, trade receivables, etc.

a. Foreign Currency 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 Companyâs exposure to the risk of changes in foreign exchange rates relates primarily to the Companyâs operating activities. The Company has a treasury department which monitors the foreign exchange fluctuations on the continuous basis and advises the management of any material adverse effect on the Company.

Un-hedged Foreign Currency Exposure

The Companyâs exposure to foreign currency in US$ at the end of the reporting period expressed in INR is as follows :

Foreign Currency Sensitivity

b. 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.

Interest Rate Sensitivity

The following table demonstrates the sensitivity to a reasonably possible change in interest rates on that portion of loans and borrowings affected. With all other variables held constant, the Company profit before tax is affected through the impact on floating rate borrowings, as follows:

(ii) Credit Risks

Credit risk is the risk that counter-party will not meet its obligations under a financial instrument or customer contract, leading to a financial loss. The Company is exposed to credit risk from its operating activities (primarily trade receivables).

Trade Receivables

Customer credit risk is managed by the Companyâs established policy, procedures and control relating to customer credit risk management. Outstanding customer receivables are regularly monitored and reconciled. Based on historical trend, industry practice and the business environment in which the company operates, an impairment analysis is performed at each reporting date for trade receivables. Based on above, the company does not expect any credit loss.

Other Financial Assets

Credit Risk on cash and cash equivalent, deposits with the banks/financial institutions is generally low as the said deposits have been made with the banks/financial institutions who have been assigned high credit rating by international and domestic rating agencies.

(iii) Liquidity Risk

The Companyâs objective is to maintain optimum levels of liquidity to meet its cash and collateral requirements at all times. The Company relies on a mix of borrowings and excess operating cash flows to meet its needs for funds. The current committed lines of credit are sufficient to meet its short to medium/ long term expansion needs. The Company monitors rolling forecasts of its liquidity requirements to ensure it has sufficient cash to meet operational needs.

The table below summarises the maturity profile of the Company financial liabilities based on contractual undiscounted payments.

Note No. : 5. Segment reporting

There is only one primary business segment i.e. âWriting Instrument and Stationaryâ and hence no separate segment information is disclosed in this financial.

Geographical segments

The Company primarily operates in India and therefore analysis of geographical segment is demonstrated into Indian and overseas operation as under:

Note No. : 6. Events occurring after the Balance Sheet date Proposed Dividend

The Board of Directors at its meeting held on 30th May, 2018 have recommended a payment of final dividend of RS. 1.50/- per equity share of face value of RS. 10/- each for the financial year ended 31st March, 2018. The same amounts to RS. 267.38 Lakhs (including dividend distribution tax of RS. 45.59 Lakhs).

The above is subject to approval of the shareholders at the ensuing Annual General Meeting of the Company and hence is not recognized as a liability.

Note No. : 7. The financial statements are reviewed by the audit committee at its meeting held on 30th May, 2018 and approved by the Board of Directors on the same date.

Note No. : 8. Insurance Claim

Inventory of RS. 546.89 Lacs was impacted by fire at the companyâs Falta unit during the quarter ended 31st March 2018. The Company has lodged insurance claim for the same, which is presently under process. The above insurance claim has been accounted for and adjusted under the head âCost of material consumedâ.

Note No. : 9. Leases

- Operating lease commitments

- Company as lessee

Certain office premises, godowns, etc. are held on operating lease. The leases range up to 3 years and are renewable for further year either mutually or at the option of the Company. The leases are cancellable.

Note No. : 10. Capital Management

The Companyâs objective to manage its capital is to ensure continuity of business while at the same time provide reasonable returns to its various stakeholders but keep associated costs under control. In order to achieve this, requirement of capital is reviewed periodically with reference to operating and business plans that take into account capital expenditure and strategic investments. Apart from internal accrual, sourcing of capital is done through judicious combination of equity and borrowing, both short term and long term. Net debt (total borrowings less cash & cash equivalents) to equity ratio is used to monitor capital.

Note No. : 11. The previous yearâs figures as at the date of transition have been reworked, regrouped, rearranged and reclassified wherever necessary. Amounts and other disclosures for the preceding year including figures as at the date of transition are included as an integral part of the current year financial statements and are to be read in relation to the amounts and other disclosures relating to the current year.

Mar 31, 2016

b. Terms & rights attached to equity shares

The Company has only one class of equity shares having a par value of H10 per share. Each holder of equity shares is entitled to one vote per share. The holders of Equity Shares are entitled to receive dividends as declared from time to time. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting. In the event of liquidation of the Company, the holders of equity shares will be entitled to receive remaining assets of the Company, after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders.

*Represents adjustment as per transitional provisions of Schedule II to the Companies Act, 2013 in relation to assets where useful life has already exhausted.

a. General Reserve is primarily created to comply with the requirements of section 123(1) of the Companies Act, 2013. This is the free reserve and can be utilized for any general purpose viz. issue of bonus shares, payment of dividend, buyback of shares etc.

b. During the year ended 31st March 2016, the Board of Directors has proposed a dividend of H3 per equity share. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting. The total dividend appropriation for the year ended March 31, 2016 amounted to Rs.533.88 lacs including corporate dividend tax of Rs.90.30 lacs.

c. During the year ended 31st March, 2015, dividend of Rs.2.50 per equity share was recognized as distribution to equity shareholders. The total dividend appropriation for the year ended March 31, 2015 amounted to Rs.443.57 lacs including corporate dividend tax of Rs.73.92 lacs.

Mar 31, 2015

A. Terms & rights attached to equity shares

The Company has only one class of equity shares having a par value of H10 per share. Each holder of equity shares is entitled to one vote per share. The holders of Equity Shares are entitled to receive dividends as declared from time to time. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting. In the event of liquidation of the Company, the holders of equity shares will be entitled to receive remaining assets of the Company, after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders.

a. General Reserve is primarily created to comply with the requirements of sec. 123 of the Companies Act, 2013. This is the free reserve and can be utilised for any general purpose viz. issue of bonus shares, payment of dividend, buyback of shares etc.

b. During the year ended 31st March 2015, dividend Rs.2.50 per equity share was recognised as distribution to equity shareholders. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting.The total dividend appropriation for the year ended March 31, 2015 amounted to Rs.443.57 lacs including corporate dividend tax of Rs.73.92 lacs.

c. During the year ended 31st March, 2014, dividend Rs.2 per equity share was recognised as distribution to equity sharholders. The total dividend appropriation for the year ended March 31, 2014 amounted to H345.98 lacs including corporate dividend tax of Rs.50.26 lacs.

2 Short-term borrowings

a. Loans from Bank is secured by hypothecation of Plant & Machinery, Moulds & Current Assets of the Company and first charge by way of Equitable Mortgage of Immoveable Properties and other Fixed Assets of the Company and also guaranteed by Managing Director, Whole Time Director and associate concern of the Company. The loan from banks is repayable on demand and carries interest @ 10% to 13%.

b. Details of Borrowings guaranteed by two of its Directors and others:

Mr. Deepak Jalan & Mr. Aloke Jalan: Rs.5125 Lacs (Previous Year Rs.5225 Lacs); Linc Writing Aids Pvt. Ltd. Rs.3775 Lacs (Previous Year Rs.3775 Lacs).

c. Foreign Currency loan from bank carried interest @ 6 mths. LIBOR plus 3.00%.

3 Other Disclosures

1 Contingent liabilities and commitments (to the extent not provided for)

(Rs. in Lacs)

As on As on Particulars 31st March, 2015 31st March, 2014

a) Contingent Liabilities:

Claims against the Company not acknowledged as debts:

Income Tax demands under appeal 444.88 524.57

Income Tax Paid against demands 209.25 194.23

The amounts shown in (a) above represent the best possible estimates arrived at on the basis of available information.

The uncertainties and timing of the cash flows are dependent on the outcome of the different legal processes which have been invoked by the Company or the claimants as the case may be and therefore cannot be estimated accurately.

In the opinion of the management, no provision is considered necessary for the disputes mentioned above on the grounds that there are fair chances of successful outcome of appeals.

The Company does not expect any reimbursements in respect of the above contingent liabilities.

b) Commitments:

i) Estimated amount of Contracts remaining to be 412.68 187.87 executed on Capital Account and not provided for

ii) Advance paid against above 388.14 257.73

2. The amount due to Micro and Small Enterprises as defined in the "The Micro, Small and Medium Enterprises Development Act, 2006" has been determined to the extent such parties have been identified on the basis of information available with the Company.

4. Segment Reporting

The business of the company falls under a single segment i.e. "Writing Instruments and Stationeries" therefore the disclosure requirements as per Accounting Standard 17 "Segment Reporting" are not applicable to the Company.

5. Employee Benefits :

As per Accounting Standard - 15, the disclosure of Employee Benefits as defined in the Accounting Standard are as follows:

a) Defined Contribution Plan :

Employee benefits in the form of Provident Fund and Employee State Insurance Scheme are considered as defined contribution plan and the contributions are made in accordance with the relevant statute and are recognized as an expense when employees have rendered service entitling them to the contributions. The contribution to defined contribution plan, recognized as expense for the year is as under:

b) Post employment and other long-term employee benefits in the form of gratuity and leave encashment are considered as defined benefit obligation. The present value of obligation is determined based on actuarial valuation using projected unit credit method as at the Balance Sheet date. The amount of defined benefits recognized in the Balance Sheet represents the present value of the obligation as adjusted for unrecognized past service cost, and as reduced by the fair value of plan assets.

VI. Basis used to determine the Expected Rate of Return on Plan Assets:

The basis used to determine overall expected rate of return on plan assets is based on the current portfolio of assets, investment strategy and market scenario. In order to protect the capital and optimize returns within acceptable risk parameters, the plan assets are well diversified.

VII. Basis of estimates of rate of escalation in salary

The estimates of rate of escalation in salary considered in actuarial valuation, take into account inflation, seniority, promotion and other relevant factors including supply and demand in the employment market. The above information is certified by LIC.

XI Other Disclosures

1. The Gratuity and Provident Fund Expenses have been recognized under "Contribution to providen and other funds" and Leave Encashment under "Salaries & wages" under Note no. 24.

2. Experience adjustment arising on Plan Liabilities and Plan Assets for the previous four annua period is not available and therefore, not disclosed.

6. Disclosure under clause 32 of the Listing Agreement:

There are no transactions which are required to be disclosed under Clause 32 of the Listing Agreement with the Stock Exchanges where the Equity Shares of the Company are listed.

7. Figures in brackets represent figures for the previous year.The previous year's figures have been reworked,regrouped,rearranged and reclassified wherever necessary as required by Schedule III of the Companies Act, 2013. Amounts and other disclosures for the preceeding year are included as an integral part of the current year financial statements and are to be read in relation to the amounts and other disclosures relating to the current year.

This is the Balance Sheet referred to in our report of even date.

Mar 31, 2014

1. The amount due to Micro and Small Enterprises as defined in the "The Micro, Small and Medium Enterprises Development Act, 2006" has been determined to the extent such parties have been identified on the basis of information available with the Company.

2. Segment Reporting

The business of the Company falls under a single segment i.e. "Writing Instruments and Stationeries" therefore the disclosure requirements as per Accounting Standard 17 "Segment Reporting" are not applicable to the Company.

b) Post employment and other long-term employee benefits in the form of gratuity and leave encashment are considered as defined benefit obligation. The present value of obligation is determined based on actuarial valuation using projected unit credit method as at the Balance Sheet date. The amount of defined benefits recognized in the Balance Sheet represents the present value of the obligation as adjusted for unrecognized past service cost, and as reduced by the fair value of plan assets.

VI. Basis used to determine the Expected Rate of Return on Plan Assets:

The basis used to determine overall expected rate of return on plan assets is based on the current portfolio of assets, investment strategy and market scenario. In order to protect the capital and optimize returns within acceptable risk parameters, the plan assets are well diversified.

VII. Basis of estimates of rate of escalation in salary

The estimates of rate of escalation in salary considered in actuarial valuation, take into account inflation, seniority, promotion and other relevant factors including supply and demand in the employment market. The above information is certified by LIC.

3. a. Disclosure under clause 32 of the Listing Agreement:

There are no transactions which are required to be disclosed under Clause 32 of the Listing Agreement with the Stock Exchanges where the Equity Shares of the Company are listed.

b. The previous year''s figures have been reworked, regrouped, rearranged and reclassified wherever necessary as required by Revised Schedule VI. Amounts and other disclosures for the preceding year are included as an integral part of the current year financial statements and are to be read in relation to the amounts and other disclosures relating to the current year.

4. Figures in brackets represents figures for the previous years.

Mar 31, 2013

Note 1 SEGMENT REPORTING

The business of the company falls under a single segment i.e. "Writing Instruments and Stationeries" therefore the disclosure requirements as per Accounting Standard 17 "Segment Reporting" are not applicable to the Company.

Note 2 DISCLOSURE UNDER CLAUSE 32 OF THE LISTING AGREEMENT:

There are no transactions which are required to be disclosed under Clause 32 of the Listing Agreement with the Stock Exchanges where the Equity Shares of the Company are listed.

Note 3

The previous years figures have been reworked, regrouped, rearranged and reclassified wherever necessary as required by Revised Schedule VI. Amounts and other disclosures for the preceding year are included as an integral part of the current year financial statements and are to be read in relation to the amounts and other disclosures relating to the current year.

Note 4

Figures in brackets represents figures for the previous years.

Mar 31, 2012

A. 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 shares is entitled to one vote per share. The holders of equity shares are entitled to receive dividends as declared from time to time. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting. In the event of liquidation of the company, the holders of equity shares will be entitled to receive remaining assets of the company, after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders.

b. The company has issued an aggregate of 47.86 lacs (previous year 47.86 lacs upto 31.3.11) fully paid up equity shares of par value Rs. 10/- each without payment being received in cash in the last 5 years immediately preceeding the balance sheet date.

a. General Reserve is primarly created to comply with the requirements of sec. 205(2A) of the Companies Act, 1956. This is the free reserve and can be utilised for any general purpose viz. issue of bonus shares, payment of dividend, buyback of shares etc.

b. During the year ended 31st March, 2012, dividend Re. 1/- per equity share was recognised as distribution to equity shareholders. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting.The total dividend appropriation for the year ended March 31, 2012 amounted to Rs. 148.61 lacs including corporate dividend tax of Rs. 20.74 lacs.

c. During the year ended 31st March, 2011, dividend Rs.1.80/- per equity share was recognised as distribution to equity sharholders. The total dividend appropriation for the year ended March 31, 2011 amounted to Rs.268.37 lacs including corporate dividend tax of Rs.38.22 lacs.

a. Nature of securities :

i. Rupee term loan from banks carries interest @ 13.75 % p.a. & Foreign Currency loan from bank carries interest @ 06 mths. LIBOR plus 5.25%.

ii. Indian Rupee / Foreign Currency Loan from bank is secured by way of hypothecation of Plant and Machinery, Moulds and Current Assets of the company and by way of first charge on Immovable Properties and Other Fixed Assets of the company and is also guaranteed by the Mangaing Director, Whole Time Director and associate concern of the company.

iii. Vehicle loan from others carries interest @ 10% p.a. and is secured by way of hypothecation of car of the Company

* Working capital loan from bank is secured by way of hypothecation of Plant and Machinery, Moulds and Current Assets of the company and by way of first charge on Immovable Properties and Other Fixed Assets of the Company and is also guaranteed by the Mangaing Director, Whole Time Director and associate concern of the Company.

(Rs. in lacs)

As at 31 March, 2012 2011

Note 1.1 CONTINGENT LIABILITIES AND COMMITMENTS (TO THE EXTENT NOT PROVIDED FOR)

a) Contingent liabilities:

Claims against the Company not acknowledged as debts:

Income Tax demands under appeal 524.57 621.52

Income Tax paid against demands 115.00 50.00

The amounts shown in (a) above represent the best possible estimates

arrived at on the basis of available information. The uncertainties and timing of the cash flows are dependent on the outcome of the different legal processes which have been invoked by the Company or the claimants as the case may be and therefore cannot be estimated accurately.

In the opinion of the management, no provision is considered necessary for the disputes mentioned above on the grounds that there are fair chances of successful outcome of appeals.

Note 1.2

The amount due to Micro and Small Enterprises as defined in the 'The Micro, Small and Medium Enterprises Development Act, 2006' has been determined to the extent such parties have been identified on the basis of information available with the Company.

Note 1.3 SEGMENT REPORTING

The business of the Company falls under a single segment i.e. 'Writing Instruments and Stationeries' therefore the disclosure requirements as per Accounting Standard 17 'Segment Reporting' are not applicable to the Company.

III) No amount has been written back/written off during the year in respect of due to/from related parties.

IV) The amount due from related parties are good and hence no provision for doubtful debts in respect of dues from such related parties is required.

V) The transactions with related parties have been entered at an amount, which are not materially different from that on normal commercial terms.

VI) Figures in brackets pertain to previous year.

Note 1.4 EMPLOYEE BENEFITS

As per Accounting Standard-15, the disclosures of Employee Benefits as defined in the Accounting Standard are as follows:

a) Defined contribution plan:

Employee benefits in the form of Provident Fund and Employee State Insurance Scheme are considered as defined contribution plan and the contributions are made in accordance with the relevant statute and are recognised as an expense when employees have rendered service entitling them to the contributions. The contribution to defined contribution plan, recognised as expense for the year is as under:

b) Post employment and other long-term employee benefits in the form of gratuity and leave- encashment are considered as defined benefit obligation. The present value of obligation is determined based on actuarial valuation using projected unit credit method as at the Balance Sheet date. The amount of defined benefits recognised in the Balance Sheet represents the present value of the obligation as adjusted for unrecognised past service cost, and as reduced by the fair value of plan assets.

Any asset resulting from this calculation is limited to the discounted value of any economic benefits available in the form of refunds from the plan or reductions in future contributions to the plan. The amount recognised in the Profit and Loss account for the year ended 31st March, 2012 in respect of Employees Benefit Schemes based on actuarial reports as on 31st March, 2012 is as follows:

VI. Basis used to determine the Expected Rate of Return on Plan Assets:

The basis used to determine overall expected rate of return on plan assets is based on the current portfolio of assets, investment strategy and market scenario. In order to protect the capital and optimise returns within acceptable risk parameters, the plan assets are well diversified.

VII. Basis of estimates of rate of escalation in salary

The estimates of rate of escalation in salary considered in actuarial valuation, take into account inflation, seniority, promotion and other relevant factors including supply and demand in the employment market. The above information is certified bv LIC.

IX Other disclosures

1. The Gratuity and Provident Fund expenses have been recognised under 'Contribution to provident and other funds' and Leave Encashment under 'Salaries and wages' under Note no. 2.23.

2. Experience adjustment arising on plan liabilities and plan assets for the previous four annual period is not available and therefore, not disclosed.

Note 1.5 DISCLOSURE UNDER CLAUSE 32 OF THE LISTING AGREEMENT:

There are no transactions which are required to be disclosed under Clause 32 of the Listing Agreement with the stock exchanges where the equity shares of the Company are listed.

Note 1.6

Sundry debtors includes Rs. nil (Previous Year Rs. 7.58 lacs) under litigation.

Note 1.7

The previous year's figures have been reworked, regrouped, rearranged and reclassified wherever necessary as required by Revised Schedule VI. Amounts and other disclosures for the preceding year are included as an integral part of the current year financial statements and are to be read in relation to the amounts and other disclosures relating to the current year.

Note 1.8 FIGURES IN BRACKETS REPRESENTS FIGURES FOR THE PREVIOUS YEARS.

Mar 31, 2011

1. i) Contingent Liabilities Not Provided For

(Amount in Rupees)

As at 31st March, 2011 2010

a) Bank Guarantees issued in favour of the President of India and others* 3,170,000 6,023,850

*Fixed Deposit lodged as Margin Money against the above 1,030,719 1,585,372

b) Income Tax demands under appeal 62,151,990 21,880,079

Income Tax Paid against demands 5,000,000 Ã

c) Bills Discounted from Bank Nil 2,122,099

2. Managerial Remuneration

The total remuneration as above is within the maximum permissible limit under the Act. The above figure does not include Gratuity, since the same is provided on actuarial basis for the company as a whole.

3.The amount due to Micro and Small Enterprises as defined in the "The Micro, Small and Medium Enterprises Development Act, 2006" has been determined to the extent such parties have been identified on the basis of information available with the Company.

4.Segment Reporting

The business of the company falls under a single segment i.e. ÃWriting Instruments and StationeriesÃ therefore the disclosure requirements as per Accounting Standard 17 ÃSegment ReportingÃ are not applicable to the Company.

5. Related Party transactions:

Related party disclosure as per Accounting Standard 18 for the year ended 31st March 2011 are given below:

I) Names and description of relationship of related parties as on 31st March 2011:

Related Party Relationship

Associates :

Linc Retail Ltd Associate

Key Managerial Personnel (KMP) :

Deepak Jalan Managing Director

Prakash Jalan Director

Aloke Jalan Whole Time Director

Enterprises in which KMP and their relatives have substantial interest

Linc Marketing Services (Goa) Proprietorship Concerns owned by

Linc Engineering Smt.Bindu Jalan wife of Director

S.M. Homes Linc Writing Aids Pvt. Ltd. Substantial interest of the relatives of

M.D.and W.T.D.

Linc Property Developers Ltd. Substantial interest of the

Director

Relatives of KMP :

Mr.Deepak Jalan Deepak Jalan (HUF) Mr Deepak Jalan is Karta of HUF

Mr.S.M.Jalan (Father)

Mrs.Bimla Devi Jalan (Mother)

Ms.Divya Jalan (Daughter)

Mr.Prakash Jalan Mr.S.M. Jalan (Father)

Mrs. Bimla Devi Jalan (Mother)

Mr. Aloke Jalan Aloke Jalan (HUF) Mr. Aloke Jalan is Karta of HUF

Mrs. Shobha Jalan (Wife)

Mr. S.M. Jalan (Father)

Mrs. Bimla Devi Jalan (Mother)

III) No amount has been written back / written off during the year in respect of due to / from related parties.

IV) The amount due from related parties are good and hence no provision for doubtful debts in respect of dues from such related parties is required.

V) The transactions with related parties have been entered at an amount which are not materially different from that on normal commercial terms.

VI) Figure in brackets pertain to previous year.

6.Capital Work In Progress includes Capital Advance of Rs 20,286,148 (Rs.11,045,579).

7.Employee Benefits :

As per Accounting Standard - 15, the disclosure of Employee Benefits as defined in the Accounting Standard are as follows:

a) Defined Contribution Plan :

b) Post employment and other long-term employee benefits in the form of gratuity and leave encashment are considered as defined benefit obligation. The present value of obligation is determined based on actuarial valuation using projected unit credit method as at the Balance Sheet date. The amount of defined benefits recognized in the Balance Sheet represent the present value of the obligation as adjusted for unrecognized past service cost, and as reduced by the fair value of plan assets.

Any asset resulting from this calculation is limited to the discounted value of any economic benefits

VI.Basis used to determine the Expected Rate of Return on Plan Assets: The basis used to determine overall expected rate of return on plan assets is based on the current portfolio of assets, investment strategy and market scenario. In order to protect the capital and optimize returns within acceptable risk parameters, the plan assets are well diversified.

VII.Basis of estimates of rate of escalation in salary

The estimates of rate of escalation in salary considered in actuarial valuation, take into account inflation, seniority, promotion and other relevant factors including supply and demand in the employment market. The above information is certified by LIC.

IX Other Disclosures

1. The Gratuity and Provident Fund Expenses have been recognized under ÃContribution to Provident and Other FundsÃ and Leave Encashment under ÃSalaries, Wages, Bonus & AllowancesÃ under Schedule - 16.

2. The amount of the Present value of Obligation, fair value of Plan Assets, Surplus/Deficit in the plan and experience adjustment arising on Plan Liabilities and Plan Assets for the previous one annual period is not available and therefore, not disclosed.

3. The amount of Expected EmployerÃs contribution for next year is not available and therefore, not disclosed.

8. Disclosure pursuant to AS-29 on Provisions, Contingent Liabilities and Contingent Assets :

i) No provisions for Liabilities was made during the year and no provision was outstanding at the beginning and at the end of the year.

ii) The Contingent Liabilities referred to in B-2 above depends upon non discharge of export obligation/outcome of appeal, invocation of bank guarantee etc.

iii) No reimbursement is expected in respect of contingent liabilities shown in B-2 above.

9.Disclosure under clause 32 of the Listing Agreement:

There are no transactions which are required to be disclosed under Clause 32 of the Listing Agreement with the Stock Exchanges where the Equity Shares of the Company are listed.

10.Sundry Debtors includes Rs. 758,437 (Previous Year Nil) under litigation.

11. The previous yearÃs figures have been reworked, regrouped, rearranged and reclassified wherever necessary. Amounts and other disclosures for the preceding year are included as an integral part of the current year financial statements and are to be read in relation to the amounts and other disclosures relating to the current year.

12. Additional Information Pursuant to paragraph 4C & 4D of Part II of Schedule VI to the Companies Act, 1956

* The company's products are non standardised and are of various shapes & sizes, hence there is no proper measure to assess and indicate the same.

Note:

I. No specific licence is required for the manufacture of products mentioned above.

II. Production includes products manufactured on job basis.

13. The Ministry of Corporate Affairs, Government of India vide its General Notification No. S.O.301(E) dated 8th February 2011 issued under Section 211(3) of the Companies Act, 1956 has exempted certain classes of companies from disclosing certain information in their profit and loss account. The Company being an Ãexport oriented companyÃ is entitled to the exemption. Accordingly, disclosures mandated by paragraphs 3(i)(a), 3(ii)(a), 3(ii)(b) and 3(ii)(d) of Part II, Schedule VI to the Companies Act,1956 have not been provided.

14. Figures in brackets represents figures for the previous years.

Mar 31, 2010

(Amount in Rupees)

2010 2009

1 i) Contingent Liabilities Not Provided For:

a) Bank Guarantees issued in favour of the President of India and others* 6,023,850 20,368,043

*Fixed Deposit lodged as Margin Money against the above 1,585,372 2,530,064

b) Income Tax demands under appeal 21,880,079 Nil

c) Bills Discounted from Bank 2,122,099 98,506

2 The amount due to Micro and Small Enterprises as defined in the "The Micro, Small and Medium Enterprises Development Act, 2006" has been determined to the extent such parties have been identified on the basis of information available with the Company.

3 Segment Reporting

The business of the company falls under a single segment i.e, "Writing Instruments and Stationeries" therefore the disclosure requirements as per Accounting Standard 17 "Segment Reporting" are not applicable to the Company.

4 Related Party transactions:

Related party disclosure as per Accounting Standard 18 for the year ended 31st March 2010 are given below:

1} Names and description of relationship of related parties as on 31st March 2010:

Related Party Relationship

Associates :

Linc Retail Ltd Associates

Key Managerial

Personnel (KMP) :

Deepak Jalan Managing Director

Prakash Jalan Whole Time Director

Aloke Jalan Whole Time Director

1} Names and description of relationship of related parties as on 31st March 2010: (Contd...)

Related Party Relationship

Enterprises in which KMP

and their relatives have

substantial interest:

S.M. Pen & Plastics

Industries Proprietorship Concerns owned by

Radhika Writing

Instruments Sri S.M. Jalan father of M.D. and W.T.D.

Linc Marketing Services (Goa) Proprietorship Concerns owned by

Linc Engineering Smt. Bindu Jalan wife of W.T.D.

S.M. Homes

Linc Writing Aids Pvt. Ltd Substantial interest of the relatives of M.D. and W.T.D.

Relatives of KMP :

Mr. Deepak Jalan Deepak Jalan (HUF) Mr. Deepak Jalan is Karta of HUF

Mr. S.M. Jalan (Father)

Mrs. Bimla Devi Jalan (Mother)

Ms. Divya Jalan (Daughter)

Mr. Prakash Jalan Mr. S.M. Jalan (Father)

Mrs. Bimia Devi Jalan (Mother)

Mr. Aloke Jalan Aloke Jalan (HUF) Mr. Aloke Jalan is Karta of HUF

Mrs. Shobha Jalan (Wife)

Mr. S.M. Jalan (Father)

Mrs. Bimla Devi Jalan (Mother)

III) No amount has been written back / written off during the year in respect of due to / from related parties.

IV) The amount due from related parties are good and hence no provision for doubtful debts in respect of dues from such related parties is required.

V) The transactions with related parties have been entered at an amount which are not materially different from that on normal commercial terms.

VI) Figure in brackets pertain to previous year.

5 Capital Work In Progress includes Capital Advance of Rs 11,045,579/- (Rs.4,425,447/-).

6 Employee Benefits :

As per Accounting Standard - 15, the disclosure of Employee Benefits as defined in the Accounting Standard are as follows.

a) Defined Contribution Plan :

Employee benefits in the form of Provident Fund and Employee State Insurance Scheme are

b) Post employment and other long-term employee benefits in the form of gratuity is considered as defined benefit obligation. The present value of obligation is determined based on actuarial valuation using projected unit credit method as at the Balance Sheet date. The amount of defined benefits recognized in the Balance Sheet represent the present value of the obligation as adjusted for unrecognized past service cost, and as reduced by the fair value of plan assets.

VI. Basis used to determine the Expected Rate of Return on Plan Assets:

The basis used to determine overall expected rate of return on plan assets is based on the current portfolio of assets, investment strategy and market scenario. In order to protect the capital and optimize returns within acceptable risk parameters, the plan assets are well diversified.

VII. Basis of estimates of rate of escalation in salary

The estimates of rate of escalation in salary considered in actuarial valuation, take into account inflation, seniority, promotion and other relevant factors including supply and demand in the employment market. The above information is certified by LIC.

7. Disclosure pursuant to AS-29 on Provisions, Contingent Liabilities and Contingent Assets :

i) No provisions for Liabilities was made during the year and no provision was outstanding at the beginning and at the end of the year.

ii) The Contingent Liabilities referred to in B-2 above depends upon non discharge of export obligation/ outcome of appeal invocation of bank guarantee etc.

iii) No reimbursement is expected in respect of contingent liabilities shown in B-2 above.

8. Disclosure under clause 32 of the Listing Agreement:

There are no transitions which are required to be disclosed under Clause 32 of the Listing Agreement with the Stock Exchanges where the Equity Shares of the Company are listed.

* The companys products are non standardised and are of various shapes & sizes, hence there is no proper measure to assess and indicate the same.

Note-.

I. No specific licence is required for the manufacture of products mentioned above.

II. Production includes products manufactured on job basis.

9. I) Figures in brackets represents figures for the previous years.

II) The previous year figures have been regrouped and rearranged wherever necessary.

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