Notes to Accounts of Nath Industries Ltd.

Mar 31, 2025

(w) Provisions & Contingent Liabilities:

Provisions:

Provisions are recognized when the Company has a present legal or constructive obligation as
a result of past events, it is probable that an outflow of resources embodying economic
benefits will be required to settle the obligation and the amount can be reliably estimated.
Provisions are measured at the present value of management''s best estimate of the
expenditure required to settle the present obligation at the end of the reporting period. When
the Company expects some or all of a provision to be reimbursed, for example, under an
insurance contract, the reimbursement is recognized as a separate asset, but only when the
reimbursement is virtually certain. The expense relating to a provision is presented in the
Statement of Profit and Loss net of any reimbursement.

Contingent Liabilities:

A disclosure for contingent liabilities is made when there is a possible obligation arising from
past events, the existence of which will be confirmed only by the occurrence or non¬
occurrence of one or more uncertain future events not wholly within the control of the
Company or a present obligation that arises from past events where it is either not probable
that an outflow of resources embodying economic benefits will be required to settle or a
reliable estimate of the amount cannot be made.

(x) Financial Assets at Fair Value through Profit or Loss Account:

Financial assets are measured at fair value through profit or loss unless it is measured at
amortized cost or at fair value through other comprehensive income on initial recognition. The
transaction costs directly attributable to the acquisition of assets and liabilities at fair value
through profit and loss are immediately recognized in the statement of profit and loss.

(y) Financial Liabilities:

Financial liabilities are classified, at initial recognition, as financial liabilities at fair value
through profit or loss, loans and borrowings or payables, as appropriate. All financial liabilities
are recognized initially at fair value and, in the case of loans and borrowings and payables, net
of directly attributable transaction costs. The Company''s financial liabilities include trade and
other payables, loans and borrowings including bank overdrafts and financial guarantee
contracts.

Financial liabilities are measured at amortized cost using the effective interest method.

(z) Reclassification of Financial Assets & Liabilities:

The Company determines classification of the financial assets and liabilities on initial
recognitions. After initial recognition, no reclassification is made for financial assets which are
equity instruments and financial liabilities. For financial assets which are debt instruments, a
reclassification is made only if there is a change in the business model for managing those
assets. Changes to the business model are expected to be infrequent. The Company''s senior
management determines change in the business model as a result of external or internal
changes which are significant to the company''s operations. Such changes are evident to
external parties. A change in the business model occurs when a company either begins or
ceases to perform an activity that is significant to its operations. If the Company reclassifies
financial assets, it applies the reclassification prospectively from the reclassification date which
is the first day of the immediately next reporting period following the change in business
model. The Company does not restate any previously recognized gains, losses (including
impairment gains and losses) or interest.

(aa)Offsetting of Financial Instruments

Financial assets and liabilities are offset and the net amount is reported in the Balance Sheet if
there is currently enforceable legal right to offset the recognized amounts and there is no
intention to settle on a net basis, to realize the assets and settle the liabilities simultaneously.

i) Capital Management: -

The Company''s capital management objectives are to maintain a strong capital base so as to
maintain investors, creditors and market confidence and to future development of the business.
The Board of Directors monitor return on capital employed.

The Company manages capital risk by maintaining sound/optimal capital structure through
monitoring of financial ratios, such as debt-to-equity ratio and net borrowings-to-equity ratio on a
monthly basis and implements capital structure improvement plan when necessary.

The Company uses debt ratio as a capital management index and calculates the ratio as Net debt
divided by total equity. Net debt and total equity are based on the amounts stated in the financial
statements.

ii) Credit Risk:-

Credit risk is the risk of financial loss arising from counter-party failure to repay or service debt
according to contractual terms or obligations. Credit risk encompasses both, the direct risk of
default and the risk of deterioration of credit worthiness as well as concentration of risks. Credit
risk is controlled by analyzing credit limit and creditworthiness of customers on a continuous basis
to whom the credit has been granted after necessary approvals for credit.

Financial instruments that are subject to credit risk principally consists of trade receivable,
investments, derivative financial instruments and other financial assets. None of the financial
instruments of the Company results in material concentration of credit risk.

Exposure to credit risk:-

The carrying amount of financial assets represents the maximum credit exposure. The maximum
exposure to credit risk is as under, being the total of the carrying amount of balances with trade
receivables and loans and advances: -

Ind AS requires expected credit losses to be measured through a loss allowance. The Company
assesses at each date of financial statement whether a financial asset or group of financial assets
is impaired. The Company recognizes lifetime expected losses for all contract assets and / or all
trade receivables that do not constitute a financing transaction. For all other financial assets,
expected credit losses are measured at an amount equal to 12 months expected credit losses or at
an amount equal to the life time expected credit losses, if the credit risk on the financial asset has
increased significantly since initial recognition

Before accenting any new customer, the Company uses an external/internal credit scoring system
to assess potential customer''s credit quality and defines credit limits by customer. Limits and
scoring attributed to customer are reviewed periodic basis

iii) Liquidity Risk

a. Liquidity Risk Management:-

Liquidity risk refers to the risk that the Company cannot meet its financial obligations. The
objective of liquidity risk management is to maintain sufficient liquidity and ensure that funds are
available for use as per requirements. The Company manages liquidity risk by maintaining
adequate reserves, banking facilities and reserve borrowing facilities, by continuously monitoring
forecast and actual cash flows, and by matching the maturity profiles of financial assets and
liabilities.

b. Maturities of financial liabilities

The following table details the remaining contractual maturities for its financial liabilities with
agreed repayment period. The amount disclosed in the table has been drawn up based on the
undiscounted cash flow of financial liabilities based on the earliest date on which the Company is
required to pay. The table includes principal cash outflows.

c. Maturities of financial assets:-

The following table details the Company''s expected maturity for financial assets. The table has
been drawn up based on the undiscounted contractual maturities of the financial assets including
interest that will be earned on such assets.

d. Market Risk:-

Market risk is risk that the fair value or future cash flows of a financial instrument will fluctuate
because of changes in the market prices. Such changes in the value of financial instruments may
result from changes in the foreign currency exchange rate, interest rate, credit, liquidity and other
market changes.

Note No.: 35
Secured Loans

a. Working Capital and Term Loan:-

Loans Repayable on demand or on due date and GECL availed from the State Bank of India is
primarily secured by Hypothecation of present and future stock of raw materials, Stock in
process, finished goods, Stores & spare parts and Book debts.

Term loans availed from the State Bank of India for Co-generation power plant, Sulphuric
Expansion projects and New Online Coating Plant are primarily secured by the respective
plants.

All the above facilities are additionally secured by the registered mortgage on existing
leasehold land admeasuring 23,409 sq mtr with building and structure thereon, including all
machineries at industrial Plot No 293, 296 in industrial area bearing survey no. 55/P, 57/P,
67P, 68P and 139P, within the limits of Chirri and Chanod, Vapi, Taluka Pardi, Dist Valsad -

396195 and existing leasehold land and building bearing Survey No 621/P, 58/P, 56/P, 136/P,
137/P situated at Industrial Plot No 294, 295 and 296/P, within the limits of Chirri and Chanod,
Vapi, Taluka Pardi, Dist Valsad - 396195 admeasuring 39,020 sq mtrs,

Loans are also guaranteed by personal guarantee of Shri Akash Kagliwal, Smt Jeevanalata
Kagliwal and Shri Nandkishor Kagliwal and corporate guarantee of M/s Akash Farms LLP.
b. Working capital term loan availed from Aditya Birla Finance Limited is secured by registered
mortgage on land at

i. Gut No 50/2, 50/3 and 50/6 at Wahegaon and Gut No 54/1, 54/2, 54/3 and 54/5 50/5,
50/6 and 54/1 at Issarwadi, both lands at Tal. Paitha, Dist Aurangabad owned by the
company admeasuring 30.59 acres

ii. Gut No 321, 322, 323, 324 and 37/8 at Wahegaon Tal Paithan, Dist. Aurangabad
admeasuring 31.89 acres and

iii. Utsah Bunglow, Ground Floor at Plot No 3, CTS no. 20186 bearing Municipal no 5-14-67,
Adalat Road, Aurangabad owned by Mrs Jeevanlata Kagliwal admeasuring 1598 sq ft.
and

iv. Utsah Bunglow, First Floor at Plot No 3, CTS no. 20186 bearing Municipal no 5-14-67,
Adalat Road, Aurangabad owned by Mr Akash Kagliwal admeasuring 1598 sq ft. and
portion admeasuring 305 sq ft on second floor.

Note No.:41
Segment Reporting :

i) Primary Segment:-

The company is engaged in manufacturing of Paper & chemicals. Management has identified
reportable primary Segment & Geographic secondary Segment in accordance with Accounting
Standard 108 issued by the Institute of Chartered Accountants of India. Revenue & Expenses
directly attributable to segments are reported under each reportable segment. Expenses which

ii) Secondary Segment-

Geographical Revenue is allocated based on the location of the customer.

The company produces and sales, its products in India & also Export the same directly or indirectly
to overseas countries. The overseas sales operations are managed by its office located in India. For

the purpose of AS 108 regarding segment reporting secondary segment information on
geographical segment is considered on the basis of revenue generated from Domestic & Export
market.

NOTE No.:42

Deferred Sales Tax Liability

Nath Industries Limited -Unit Nath Paper was the beneficiary of Package Scheme of Incentive (PSI-
1988) of Government of Maharashtra upto 2008-09. As per the scheme and Government
Resolution no IDL/1093/(8889)/IND-8 dated 07^th May 1993, unit Nath Paper being located in
Marathwada was eligible to pay the deferred sales tax after 18 years in seven equal annual
installments. Accordingly, the liability of deferred sales tax will be paid from 18^th years in seven
equal installments. The repayment of same will begin from the F.Y. 2029-30.

The Department of Industries, Government of Maharashtra has further sanctioned vide their letter
dated 07.12.2015 the Eligibility for the unutilized CQB of Rs. 1951.75 lakhs under PSI-1988, for a
period of 5 years i.e. from 1st November, 2015 to 31st October, 2020

Deferred Sales tax Liability of MVAT/ SGST has been valued at Book value, which would have been
Rs 1,090.51 lakhs if valued at Fair Value as required under the IND AS -113 Fair Value
Measurement. Company has recognized the same at its Book value considering the fact that the
company is liable to pay the entire dues to the Government of Maharashtra as per the schedule of
repayment.

Note No.:44

Disclosure in accordance with Section 22 of the Micro, Small and Medium Enterprises Act, 2006:

Information related to Micro and Small Enterprises, as per the Micro, Small and Medium
Enterprise Development Act 2006 (MSME Development Act), are given below. The information
given below have been determined to the extent such enterprises have been identified on the
basis of information available with the Company.

*The results of expansion and cost reductions project undertaken in last 3 years have reflected in
the performance of the company. The company has recorded net profit after tax of Rs 973.72 lakhs
as against the profit after tax Rs 49.42 lakhs recorded in previous financial year.

Note No.:47
Previous year Figures

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

In term of our report attached

For N. R. Agrawal & Co For and on behalf of the Board

Chartered Accountants

Firm Reg. No. 100143W

N. R. Agrawal Akash Kagliwal

Partner Managing Director

M.No.: 030117

UDIN:- 25030117BMULBW5932

Place : Mumbai Abhaykumar Jain

Date: 30^th May 2025 Director

---

Mar 31, 2024

(w) Provisions & Contingent Liabilities:

Provisions:

Provisions are recognized when the Company has a present legal or constructive obligation as a result of past events, it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and the amount can be reliably estimated. Provisions are measured at the present value of management''s best estimate of the expenditure required to settle the present obligation at the end of the reporting period. When the Company expects some or all of a provision to be reimbursed, for example, under an insurance contract, the reimbursement is recognized as a separate asset, but only when the reimbursement is virtually certain. The expense relating to a provision is presented in the Statement of Profit and Loss net of any reimbursement.

Contingent Liabilities:

A disclosure for contingent liabilities is made when there is a possible obligation arising from past events, the existence of which will be confirmed only by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the Company or a present obligation that arises from past events where it is either not probable that an outflow of resources embodying economic

benefits will be required to settle or a reliable estimate of the amount cannot be made.

(x) Financial Assets at Fair Value through Profit or Loss Account:

Financial assets are measured at fair value through profit or loss unless it is measured at amortized cost or at fair value through other comprehensive income on initial recognition. The transaction costs directly attributable to the acquisition of assets and liabilities at fair value through profit and loss are immediately recognized in the statement of profit and loss.

(y) Financial Liabilities:

Financial liabilities are classified, at initial recognition, as financial liabilities at fair value through profit or loss, loans and borrowings or payables, as appropriate. All financial liabilities are recognized initially at fair value and, in the case of loans and borrowings and payables, net of directly attributable transaction costs. The Company''s financial liabilities include trade and other payables, loans and borrowings including bank overdrafts and financial guarantee contracts.

Financial liabilities are measured at amortized cost using the effective interest method.

(z) Reclassification of Financial Assets & Liabilities:

The Company determines classification of the financial assets and liabilities on initial recognitions. After initial recognition, no reclassification is made for financial assets which are equity instruments and financial liabilities. For financial assets which are debt instruments, a reclassification is made only if there is a change in the business model for managing those assets. Changes to the business model are expected to be infrequent. The Company''s senior management determines change in the business model as a result of external or internal changes which are significant to the company''s operations. Such changes are evident to external parties. A change in the business model occurs when a company either begins or ceases to perform an activity that is significant to its operations. If the Company reclassifies financial assets, it applies the reclassification prospectively from the reclassification date which is the first day of the immediately next reporting period following the change in business model. The Company does not restate any previously recognized gains, losses (including impairment gains and losses) or interest.

(aa) Offsetting of Financial Instruments

Financial assets and liabilities are offset and the net amount is reported in the Balance Sheet if there is currently enforceable legal right to offset the recognized amounts and there is no intention to settle on a net basis, to realize the assets and settle the liabilities simultaneously.

i) Capital Management:-

The Company''s capital management objectives are to maintain a strong capital base so as to maintain investors, creditors and market confidence and to future development of the business. The Board of Directors monitor return on capital employed.

The Company manages capital risk by maintaining sound/optimal capital structure through monitoring of financial ratios, such as debt-to-equity ratio and net borrowings-to-equity ratio on a monthly basis and implements capital structure improvement plan when necessary.

The Company uses debt ratio as a capital management index and calculates the ratio as Net debt divided by total equity. Net debt and total equity are based on the amounts stated in the financial statements.

* Net Debts includes Non-Current borrowings, Deferred Sales Tax Liability and Current borrowings.

** Equity Includes share capital and other equity.

ii) Credit Risk:-

Credit risk is the risk of financial loss arising from counter-party failure to repay or service debt according to contractual terms or obligations. Credit risk encompasses both, the direct risk of default and the risk of deterioration of credit worthiness as well as concentration of risks. Credit risk is controlled by analyzing credit limit and creditworthiness of customers on a continuous basis to whom the credit has been granted after necessary approvals for credit.

Financial instruments that are subject to credit risk principally consists of trade receivable, investments, derivative financial instruments and other financial assets. None of the financial instruments of the Company results in material concentration of credit risk.

Exposure to credit risk:-

The carrying amount of financial assets represents the maximum credit exposure. The maximum exposure to credit risk is as under, being the total of the carrying amount of balances with trade receivables and loans and advances:-

Ind AS requires expected credit losses to be measured through a loss allowance. The Company assesses at each date of financial statement whether a financial asset or group of financial assets is impaired. The Company recognizes lifetime expected losses for all contract assets and / or all trade receivables that do not constitute a financing transaction. For all other financial assets, expected credit losses are measured at an amount equal to 12 months expected credit losses or at an amount equal to the life time expected credit losses, if the credit risk on the financial asset has increased significantly since initial recognition

Before accenting any new customer, the Company uses an external/internal credit scoring system to assess potential customer''s credit quality and defines credit limits by customer. Limits and scoring attributed to customer are reviewed periodic basis

iii) Liquidity Risk

a. Liquidity Risk Management-

Liquidity risk refers to the risk that the Company cannot meet its financial obligations. The objective of liquidity risk management is to maintain sufficient liquidity and ensure that funds are available for use as per requirements. The Company manages liquidity risk by maintaining adequate reserves, banking facilities and reserve borrowing facilities, by continuously monitoring forecast and actual cash flows, and by matching the maturity profiles of financial assets and liabilities.

b. Maturities of financial liabilities

The following table details the remaining contractual maturities for its financial liabilities with agreed repayment period. The amount disclosed in the table has been drawn up based on the undiscounted cash flow of financial liabilities based on the earliest date on which the Company is required to pay. The table includes principal cash outflows.

d. Market Risk:-

Market risk is risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in the market prices. Such changes in the value of financial instruments may result from changes in the foreign currency exchange rate, interest rate, credit, liquidity and other market changes.

Note No.: 35 Secured Loans

a. Working Capital and Term Loan:-

Loans Repayable on demand or on due date and GECL availed from the State Bank of India is primarily secured by Hypothecation of present and future stock of raw materials, Stock in process, finished goods, Stores & spare parts and Book debts.

Term loans availed from the State Bank of India for Co-generation power plant, Sulphuric Expansion projects and New Online Coating Plant are primarily secured by the respective plants.

All the above facilities are additionally secured by the registered mortgage on existing leasehold land admeasuring 23,409 sq mtr with building and structure thereon, including all machineries at industrial Plot No 293, 296 in industrial area bearing survey no. 55/P, 57/P, 67P, 68P and 139P, within the limits of Chirri and Chanod, Vapi, Taluka Pardi, Dist Valsad - 396195 and existing leasehold land and building bearing Survey No 621/P, 58/P, 56/P, 136/P, 137/P situated at Industrial Plot No 294, 295 and 296/P, within the limits of Chirri and Chanod, Vapi, Taluka Pardi, Dist Valsad - 396195 admeasuring 39,020 sq mtrs,

b. Working capital term loan availed from Aditya Birla Finance Limited is secured by registered mortgage on land at

i. Gut No 50/2, 50/3 and 50/6 at Wahegaon and Gut No 54/1, 54/2, 54/3 and 54/5 50/5, 50/6 and 54/1 at Issarwadi, both lands at Tal. Paitha, Dist Aurangabad owned by the company admeasuring 30.59 acres

ii. Gut No 321, 322, 323, 324 and 37/8 at Wahegaon Tal Paithan, Dist. Aurangabad admeasuring 31.89 acres and

iii. Utsah Bunglow, Ground Floor at Plot No 3, CTS no. 20186 bearing Municipal no 5-14-67, Adalat Road, Aurangabad owned by Mrs Jeevanlata Kagliwal admeasuring 1598 sq ft. and

iv. Utsah Bunglow, First Floor at Plot No 3, CTS no. 20186 bearing Municipal no 514-67, Adalat Road, Aurangabad owned by Mr Akash Kagliwal admeasuring 1598 sq ft. and portion admeasuring 305 sq ft on second floor.

c. Vehicle loans availed are secured against the hypothecation of respective vehicles.

Note: The remuneration paid to key managerial personal excludes gratuity and

compensated absences as the provision is computed for the Company as a whole and

separate figures are not available.

c. Other Related Parties:-

i. M/s Akash Farms LLP

ii. M/s Tapovan International Trading Private Limited

iii. N Kagliwal Education & Research Foundation.

iv. Paithan Mega Food Park Private Limited

d. Transactions carried out with related parties are in the ordinary course of business and the transactions are made on terms equivalent to those that prevail in arm''s length transactions. Outstanding balances at the year-end are unsecured. Transaction details are as under:

Note No.:41 Segment Reporting :

i) Primary Segment:-

The company is engaged in manufacturing of Paper & chemicals. Management has identified reportable primary Segment & Geographic secondary Segment in accordance with Accounting Standard 108 issued by the Institute of Chartered Accountants of India. Revenue & Expenses directly attributable to segments are reported under each reportable segment. Expenses which are not directly identifiable to a specific segment have been allocated on the basis of associated revenue of the segment and manpower efforts. All other expenses which are not attributable or allocable to segment have been disclosed as un allocable expenses. Assets and liabilities that are directly attributable or allocable to segments are disclosed under each reportable segment. All other assets and liabilities are disclosed as un allocable.

NOTE No.:42

Deferred Sales Tax Liability

Nath Industries Limited -Unit Nath Paper was the beneficiary of Package Scheme of Incentive (PSI-1988) of Government of Maharashtra upto 2008-09. As per the scheme and Government Resolution no IDL/1093/(8889)/IND-8 dated 07^th May 1993, unit Nath Paper being located in Marathwada was eligible to pay the deferred sales tax after 18 years in seven equal annual installments. Accordingly, the liability of deferred sales tax will be paid from 18^th years in seven equal installments. The repayment of same will begin from the F.Y. 2029-30.

The Department of Industries, Government of Maharashtra has further sanctioned vide their letter dated 07.12.2015 the Eligibility for the unutilized CQB of Rs. 1951.75 lakhs under PSI-1988, for a period of 5 years i.e. from 1st November, 2015 to 31st October, 2020

Deferred Sales tax Liability of MVAT/ SGST has been valued at Book value, which would have been Rs 1964.59 lakhs if valued at Fair Value as required under the IND AS -113 Fair Value Measurement. Company has recognized the same at its Book value considering the fact that the company is liable to pay the entire dues to the Government of Maharashtra as per the schedule of repayment.

Note No.:44

Disclosure in accordance with Section 22 of the Micro, Small and Medium Enterprises Act, 2006:

The Company has asked for confirmations from suppliers and service providers who have registered themselves under the Micro Small and Medium Enterprises Development Act, 2006 (MSMED Act, 2006) However no confirmations or information was received or available with the Company as on date of signing of final accounts, Hence information about the balance of Principal amount and the Interest due thereon remaining unpaid to supplier registered under Micro, Small and Medium Enterprises as defined under the MSMED Act, 2006 is not available.

*Net profit was low because of under utilization of capacities due to shutting down of plants for expansion.

Note No.:47 Previous year Figures

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

In term of our report attached

For N. R. Agrawal & Co For and on behalf of the Board

Chartered Accountants

Firm Reg. No. 100143W

N. R. Agrawal Akash Kagliwal

Partner Managing Director

M.No.: 030117

UDIN:- 24030117BKBFCB5830

Place : Mumbai Abhaykumar Jain

Date: 30^th May 2024 Director

---

Mar 31, 2023

(w) Provisions & Contingent Liabilities:

Provisions:

Provisions are recognized when the Company has a present legal or constructive obligation as a result of past events, it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and the amount can be reliably estimated. Provisions are measured at the present value of management''s best estimate of the expenditure required to settle the present obligation at the end of the reporting period. When the Company expects some or all of a provision to be reimbursed, for example, under an insurance contract, the reimbursement is recognized as a separate asset, but only when the reimbursement is virtually certain. The expense relating to a provision is presented in the Statement of Profit and Loss net of any reimbursement.

Contingent Liabilities:

A disclosure for contingent liabilities is made when there is a possible obligation arising from past events, the existence of which will be confirmed only by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the Company or a present obligation that arises from past events where it is either not probable that an outflow of resources embodying economic benefits will be required to settle or a reliable estimate of the amount cannot be made.

(x) Financial Assets at Fair Value through Profit or Loss Account:

Financial assets are measured at fair value through profit or loss unless it is measured at amortized cost or at fair value through other comprehensive income on initial recognition. The transaction costs directly attributable to the acquisition of assets and liabilities at fair value through profit and loss are immediately recognized in the statement of profit and loss.

(y) Financial Liabilities:

Financial liabilities are classified, at initial recognition, as financial liabilities at fair value through profit or loss, loans and borrowings or payables, as appropriate. All financial liabilities are recognized initially at fair value and, in the case of loans and borrowings and payables, net of directly attributable transaction costs. The Company''s financial liabilities include trade and other payables, loans and borrowings including bank overdrafts and financial guarantee contracts.

Financial liabilities are measured at amortized cost using the effective interest method.

(z) Reclassification of Financial Assets & Liabilities:

The Company determines classification of the financial assets and liabilities on initial recognitions. After initial recognition, no reclassification is made for financial assets which are equity instruments and financial liabilities. For financial assets which are debt instruments, a reclassification is made only if there is a change in the business model for managing those assets. Changes to the business model are expected to be infrequent. The Company''s senior management determines change in the business model as a result of external or internal changes which are significant to the company''s operations. Such changes are evident to external parties. A change in the business model occurs when a company either begins or ceases to perform an activity that is significant to its operations. If the Company reclassifies financial assets, it applies the reclassification prospectively from the reclassification date which is the first day of the immediately next reporting period following the change in business model. The Company does not restate any previously recognized gains, losses (including impairment gains and losses) or interest.

(aa) Offsetting of Financial Instruments

Financial assets and liabilities are offset and the net amount is reported in the Balance Sheet if there is currently enforceable legal right to offset the recognized amounts and there is no intention to settle on a net basis, to realize the assets and settle the liabilities simultaneously.

i) Capital Management:-

The Company''s capital management objectives are to maintain a strong capital base so as to maintain investors, creditors and market confidence and to future development of the business. The Board of Directors monitor return on capital employed.

The Company manages capital risk by maintaining sound/optimal capital structure through monitoring of financial ratios, such as debt-to-equity ratio and net borrowings-to-equity ratio on a monthly basis and implements capital structure improvement plan when necessary.

The Company uses debt ratio as a capital management index and calculates the ratio as Net debt divided by total equity. Net debt and total equity are based on the amounts stated in the financial statements.

ii) Credit Risk:-

Credit risk is the risk of financial loss arising from counter-party failure to repay or service debt according to contractual terms or obligations. Credit risk encompasses both, the direct risk of default and the risk of deterioration of credit worthiness as well as concentration of risks. Credit risk is controlled by analyzing credit limit and creditworthiness of customers on a continuous basis to whom the credit has been granted after necessary approvals for credit.

Financial instruments that are subject to credit risk principally consists of trade receivable, investments, derivative financial instruments and other financial assets. None of the financial instruments of the Company results in material concentration of credit risk.

Exposure to credit risk:-

The carrying amount of financial assets represents the maximum credit exposure. The maximum exposure to credit risk is as under, being the total of the carrying amount of balances with trade receivables and loans and advances:-

Ind AS requires expected credit losses to be measured through a loss allowance. The Company assesses at each date of financial statement whether a financial asset or group of financial assets is impaired. The Company recognizes lifetime expected losses for all contract assets and / or all trade receivables that do not constitute a financing transaction. For all other financial assets, expected credit losses are measured at an amount equal to 12 months expected credit losses or at an amount equal to the life time expected credit losses, if the credit risk on the financial asset has increased significantly since initial recognition

Before accenting any new customer, the Company uses an external/internal credit scoring system to assess potential customer''s credit quality and defines credit limits by customer. Limits and scoring attributed to customer are reviewed periodic basis

iii) Liquidity Risk

a. Liquidity Risk Management-

Liquidity risk refers to the risk that the Company cannot meet its financial obligations. The objective of liquidity risk management is to maintain sufficient liquidity and ensure that funds are available for use as per requirements. The Company manages liquidity risk by maintaining adequate reserves, banking facilities and reserve borrowing facilities, by continuously monitoring forecast and actual cash flows, and by matching the maturity profiles of financial assets and liabilities.

b. Maturities of financial liabilities

The following table details the remaining contractual maturities for its financial liabilities with agreed repayment period. The amount disclosed in the table has been drawn up based on the undiscounted cash flow of financial liabilities based on the earliest date on which the Company is required to pay. The table includes principal cash outflows.

a. Working Capital and Term Loan:-

Loans Repayable on demand or on due date and GECL availed from the State Bank of India is primarily secured by Hypothecation of present and future stock of raw materials, Stock in process, finished goods, Stores & spare parts and Book debts.

Term loans availed from the State Bank of India for Thionyl Chloride (TC) plant, Cogeneration power plant and Sulphuric Expansion projects are primarily secured by the respective plants. During the year, State Bank of India has sanctioned Rs. 5.50 Cr for installation of Online Coating Machine Plant. This term loan is primarily secured by the present and future assets of Online Coating Machine Plant.

All the above facilities are additionally secured by the registered mortgage on existing leasehold land admeasuring 23,490 sq mtr with building and structure thereon, including all machineries at industrial Plot No 293, 296 in industrial area bearing survey no. 55/P, 57/P, 67P, 68P and 139P, within the limits of Chirri and Chanod, Vapi, Taluka Pardi, Dist Valsad - 396195 and existing leasehold land and building bearing Survey No 621/P, 58/P, 56/P, 136/P, 137/P situated at Industrial Plot No 294, 295 and 296/P, within the limits of Chirri and Chanod, Vapi, Taluka Pardi, Dist Valsad - 396195 admeasuring 39,020 sq mtrs,

b. Working capital term loan availed from Aditya Birla Finance Limited is secured by registered mortgage on land at

i. Gut No 50/2, 50/3 and 50/6 at Wahegaon and Gut No 54/1, 54/2, 54/3 and 54/5 50/5, 50/6 and 54/1 at Issarwadi, both lands at Tal. Paitha, Dist Aurangabad owned by the company admeasuring 30.59 acres

ii. Gut No 321, 322, 323, 324 and 37/8 at Wahegaon Tal Paithan, Dist. Aurangabad admeasuring 31.89 acres and

iii. Utsah Bunglow, Ground Floor at Plot No 3, CTS no. 20186 bearing Municipal no 5-14-67, Adalat Road, Aurangabad owned by Mrs Jeevanlata Kagliwal admeasuring 1598 sq ft. and

iv. Utsah Bunglow, First Floor at Plot No 3, CTS no. 20186 bearing Municipal no 514-67, Adalat Road, Aurangabad owned by Mr Akash Kagliwal admeasuring 1598 sq ft. and portion admeasuring 305 sq ft on second floor.

c. Vehicle loans availed are secured against the hypothecation of respective vehicles.

a. Details of Related Parties

i. Key Management Personnel :-

Shri Akash Kagliwal ,Managing Director Shri Akhilesh Kumar Sharma, Director Shri Abhay Kumar Jain, Director Shri Vijay Saboo ,Chief Financial Officer Ms Nupur Lodwal ,Company Secretary

ii. Non-Executive/Independent Directors on the Board

Mrs. Jeevanlata Kagliwal Shri Hitesh Purohit, Independent Director Shri Kashinath G. Iyer, Independent Director Shri Madhukar Deshpande, Independent Director

iii. Relatives of Key Management Personnel

Mrs. Pratima Sharma, Manager Mrs. Rajni Jain, Manager Mrs. Sweta Kagliwal

c. Other Related Parties:-

i. M/s Akash Farms LLP

ii. M/s Tapovan International Trading Private Limited

iii. N Kagliwal Education & Research Foundation.

d. Transactions carried out with related parties are in the ordinary course of business and the transactions are made on terms equivalent to those that prevail in arm''s length transactions. Outstanding balances at the year-end are unsecured. Transaction details are as under:

i) Primary Segment:-

The company is engaged in manufacturing of Paper & chemicals. Management has identified reportable primary Segment & Geographic secondary Segment in accordance with Accounting Standard 108 issued by the Institute of Chartered Accountants of India. Revenue & Expenses directly attributable to segments are reported under each reportable segment. Expenses which are not directly identifiable to a specific segment have been allocated on the basis of associated revenue of the segment and manpower efforts. All other expenses which are not attributable or allocable to segment have been disclosed as un allocable expenses. Assets and liabilities that are directly attributable or allocable to segments are disclosed under each reportable segment. All other assets and liabilities are disclosed as un allocable.

NOTE No.:42

Deferred Sales Tax Liability

Nath Industries Limited -Unit Nath Paper was the beneficiary of Package Scheme of Incentive (PSI-1988) of Government of Maharashtra upto 2008-09. As per the scheme and Government Resolution no IDL/1093/(8889)/IND-8 dated 07^th May 1993, unit Nath Paper being located in Marathwada was eligible to pay the deferred sales tax after 18 years in seven equal annual installments. Accordingly, the liability of deferred sales tax will be paid from 18^th years in seven equal installments. The repayment of same will begin from the F.Y. 2029-30.

The Department of Industries, Government of Maharashtra has further sanctioned vide their letter dated 07.12.2015 the Eligibility for the unutilized CQB of Rs. 1951.75 lakhs under PSI-1988, for a period of 5 years i.e. from 1st November, 2015 to 31st October, 2020

Deferred Sales tax Liability of MVAT/ SGST has been valued at Book value, which would have been Rs 1,838.48 lakhs if valued at Fair Value as required under the IND AS -113 Fair Value Measurement. Company has recognized the same at its Book value considering

Note No.:44

Disclosure in accordance with Section 22 of the Micro, Small and Medium Enterprises Act, 2006:

The Company has asked for confirmations from suppliers and service providers who have registered themselves under the Micro Small and Medium Enterprises Development Act, 2006 (MSMED Act, 2006) However no confirmations or information was received or available with the Company as on date of signing of final accounts, Hence information about the balance of Principal amount and the Interest due thereon remaining unpaid to supplier registered under Micro, Small and Medium Enterprises as defined under the MSMED Act, 2006 is not available.

-Net prom was low because or unaer utilization or capacities aue to snutting aown ot plants for expansion.

Note No.:47 Previous year Figures

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

In term of our report attached

For Vidya & Co, For and on behalf of the Board

Chartered Accountants

Firm Reg. No. 308022E

Amit Nagar Akash Kagliwal

Partner Managing Director

M.No.: 056156

UDIN:- 23056156BGVRYJ2004

Place : Mumbai Abhaykumar Jain

Date: 30^th May 2023 Director

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Mar 31, 2018

A. CORPORATE INFORMATION: Rama Pulp and Papers Limited is a public company domiciled in India and incorporated under the provisions of the Company’s Act. The Company’s principal business is manufacturing of papers & chemicals.

a) Notes on accounts. First time adoption of Ind-AS

These financial statements, for the year ended 31 March 2018, have been prepared in accordance with Ind AS, for the purposes of transition to Ind AS, the company has followed the guidance prescribed in Ind AS 101- First time adoption of Indian Accounting Standards, with April 01, 2017 as the transition date and IGAAP as the previous GAAP.

Accordingly, the Company has prepared financial statements which comply with Ind AS applicable for periods ending on 31 March 2018, together with the comparative period data as at and for the year ended 31 March 2017, as described in the summary of significant accounting policies. In preparing these financial statements, the Company’s opening balance sheet was prepared as at 1 April 2016. This note explains the principal adjustments made by the Company in restating its Indian GAAP financial statements, including the balance sheet as at 1 April 2016 and the financial statements as at and for the year ended 31 March 2017.

b There is no significant reconciliation items between cash flow prepared under Previous GAAP and prepared under Ind AS.

Disclosures as required by Indian accounting standard (Ind AS) 101 first time adoption of Indian Accounting Standards Exemption and exceptions availed

Below mentioned are the applicable Ind AS 101 optional exemptions and mandatory exceptions applied in the transition from previous GAAP to Ind AS.

(c) Ind AS Optional Exemptions:

Ind AS 101 allow first-time adopters certain exemptions from the retrospective application of certain requirements under Ind AS. The company has applied the following exemptions:

i) The company has elected to measure an item of Property plant and Equipments and intangible assets at the date of transition to Ind AS as at its fair value and use that fair value as deemed cost at that date

ii) Appendix C to Ind AS 17 requires an entity to assess whether a contract or arrangement contains a lease. In accordance with Ind AS 17, this assessment should be carried out at the inception of the contract or arrangement. However, the company has done the assessment of lease in contracts based on conditions in prevailing as at the date of transition.

iii) The company has elected to apply previous GAAP carrying amount of its investment in subsidiaries, associates and joint ventures as deemed cost as on the date of transition to Ind AS.

iv) Ind AS 101 permits an entity to designate particular equity investment ( Other than equity investment in subsidiaries, joint ventures and associates ) as at fair value through other Comprehensive Income (FVOCI) based on facts and circumstances as the date of transition to Ind AS ( rather than at initial recognition). Other equity investment are classified at Fair Value through Profit & Loss (FVTPL). The Company has availed this exemption to designate certain equity investment as FVOCI on the date of transition.

v) The company has continued the policy adopted for accounting for exchange differences arising from translation of long-term foreign currency monetary items recognised in the financial statements for the period ending immediately before the beginning of the first Ind AS financial reporting period as per the previous GAAP

(d) Ind AS mandatory Exceptions:

The following mandatory exceptions have been applied in accordance with Ind AS 101 in preparing the financial statements.

i) Estimates

The estimates at April 01, 2016 and March 31, 2017 are consistent with those made for the same dates in accordance with Indian GAAP (after adjustments to reflect any differences if any, in accounting policies) apart from the items where application of Indian GAAP did not require estimation. The estimates used by the Company to present these amounts in accordance with Ind AS reflect conditions as at the transition date and as of March 31, 2017.

ii) De-recognition of financial assets and financial liabilities

The Company has elected to apply the de-recognition requirements for financial assets and financial liabilities in Ind AS 109 prospectively for transitions occurring on or after the date of transition to Ind AS.

iii) Classification and measurement of financial assets

The Company has classified the financial assets in accordance with Ind AS 109 on the basis of facts and circumstances that exist at the date of transition to Ind AS.

Notes to the reconciliation of equity as at April 01, 2016 and March 31, 2017 and total comprehensive income for the year ended i) Fair Value as deemed cost - Property Plant and Equipment (PPE)

The Company has opted the option of fair value as deemed cost for the Property Plant and Equipment as on the date of transition to Ind AS. This has resulted in increase of Rs. 2988.49 Lakhs as at 01.04.2016 in the value of the Property Plant and Equipment, reversal of earlier Revaluation reserve outstanding of Rs. 419.18 lakhs as at 01.04.2016 with corresponding increase in retained earnings of Rs. 3407.67 Lakhs as at 01.04.2016 and increase in deferred tax liability of Rs. 1120.14 Lakh as at 01.04.2016.

Fair value adjustments led to additional depreciation of Rs. 88.23 Lakh during the year ended March 31, 2017.

As the Company has opted the option of fair value as deemed cost for the Property Plant and Equipment as on the date of transition to Ind AS, hence the carrying value of revaluation reserve of Rs. 419.18 Lakhs has been adjusted against retained earnings on the date of transition. Subsequently during 2016-17, depreciation charged to revaluation reserve under previous GAAP has been reversed and depreciation as per Ind AS has been accounted for.

ii) As per the provisions of Ind AS 105, any non- current assets are to be classified as assets held for sale, if the sale of such assets is highly probable within a period of 12 months from the date of its classification.

(e) Investments (Non - Current & Current)

i) For investment in Quoted Instrument, company has elected to fair value through OCI.(FVTOCI)

(f) Financial instruments

(i) Derivative financial instruments

Under Indian GAAP, derivative contracts are restated at each balance sheet date to the extent of any reduction in value is recognized in Statement of Profit and Loss. A gain on valuation is only recognized by the Company if it represents the subsequent reversal of an earlier loss. Also under IGAAP premium on forward contract is amortized over the contract period and value was calculated excluding the premium.

Under Ind AS, both reductions and increases to the fair values of derivative contracts are recognized in profit & loss. Premium is not separately accounted and amortized.

(ii) Financial assets and financial liabilities measured at amortized cost

Under the previous GAAP, security deposits (that are refundable in cash on completion of the lease term) are recorded at their transaction value. Under Ind AS 109-Financial Instruments, security deposits are required to be valued at fair value and difference between cost and fair value is to be amortized over the period of security as rental expenses and consequently interest income is to be booked at Effective Interest method in Profit and Loss Account

(iii) Cost of borrowing

Borrowing designated and carried at amortized cost are accounted on EIR method. The upfront fee or cost of borrowing incurred is deferred and accounted on EIR basis. Borrowings are shown as net of unamortized amount of upfront fee incurred.

(g) Proposed Dividend

Under Indian GAAP, proposed dividends are recognized as liability in the period to which they relate irrespective of the approval by shareholders. Under Ind AS a proposed dividend is recognized as liability in the period in which it is declared (on approval of shareholders in a general meeting) or paid.

(h) Deferred Tax

i) 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.

ii) In addition, the various transitional adjustments lead to different temporary differences resulting in recognition of deferred tax. Such deferred tax asset has been recognized in retained earnings.

(i) Excise Duty-

Paragraph 8 of Ind AS 18, Revenue states that ‘Revenue includes only the gross inflows of economic benefits received and receivable by the entity on its own account. Amounts collected on behalf of third parties such as sales taxes, goods and services taxes and value added taxes are not having any economic benefits which flow to the entity and do not result in increases in equity. Therefore, Excise Duty has been excluded from the Gross Sales and shown separately.

(j) Depreciation on Property, Plant and Equipment

Company has reversed depreciation charged on revaluation of PPE as per previous GAAP and Depreciation on Property, Plant and Equipment has been calculated on the fair value for the F.Y. 2016-17 and depreciation as per Ind AS has been accounted

(k) Previous year’s figures have been regrouped / reclassified wherever necessary to correspond with the current year’s classification / disclosure.

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Mar 31, 2015

Not available

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Mar 31, 2014

1. Segment Information :

The Company has identified one reportable business segment i.e Manufacturing and Trading of Paper in this year.

Geographical reportable segment.

The company produces and sales, its products in India & also Export the same directly or indirectly to overseas countries. The overseas sales operations are managed by its office located in India. For the purpose of AS 17 regarding segment reporting secondary segment Information on geographical segment is considered on the basis of revenue generated from Domestic & Export market.

2. Fixed Assets:

Land, Buildings, Plant & Machinery and Furniture & Fixture were revalued for Rs. 1255.54 lacs as on 31.03.1993 and Rs. 925.77 lacs as on 31.03.2004. The revaluation in respect of these assets on based on current replacement cost by the Approved Valuer appointed for the purpose. As a result, the increased book value of such assets as above has been transferred to Revaluation Reserve in respective year.

3. Taxation:

(a) As per AS-22 "Accounting for Taxes on Income" Deferred Tax Assets are recognized and carried forward to the extent that there is a reasonable certainty that sufficient future taxable income will be available against which Deferred Tax Assets can be realized. Deferred Tax Asset are reviewed at each Balance Sheet date.

4. Miscellaneous: There are no claims for interest payment from any supplier with reference to interest on delayed payments to Small and Ancillary Industrial Undertakings Ordinance, 1992.

5. Micro, Small and Medium Enterprises Development Act, 2006 In accordance with the Notification No. GSR 719 ( E ) dt 16.11.2007, issued by the Ministry of Corporate Affairs, certain disclosures are required to be made relating to Micro and Small Enterprises as defined under the Micro, Small and Medium Development Act 2006. The Company is in the process of compiling relevant information from its suppliers about their coverage under the said Act. Since the relevant information is still not available, no disclosures have been made in the accounts.

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

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Mar 31, 2013

1. Contingent Liabilities in respect of :

As at 31.03.2013 As at 31.03.2012

Claims against the Company not acknowledged as debts hence not provided (Rs. in Lacs) (Rs. in Lacs)

(i) Bank Guarantee given to the GPCB 1.00 1.00

(ii) Bank Guarantee given to the DGVCL 110.00

2. Segment Information :

The Company has identified one reportable business segment i.e. Manufacturing and Trading of Paper during the year

Geographical reportable segment.

The company produces and sales, its products in India & also Export the same directly or indirectly to overseas countries. The overseas sales operations are managed by its office located in India. For the purpose of AS 17 regarding segment reporting secondary segment information on geographical segment is considered on the basis of revenue generated from Domestic & Export market.

3. Fixed Assets:

Land, Buildings, Plant & Machinery and Furniture & Fixture were revalued for Rs. 1255.54 lacs as on 31.03.1993 and Rs. 925.77 lacs as on 31.03.2004. The revaluation in respect of these assets on based on current replacement cost by the Approved Valuer appointed for the purpose. As a result, the increased book value of such assets as above has been transferred to Revaluation Reserve in respective year.

4. Taxation:

(a) No provision has been made for current income tax due to carry forward benefit of profit earned u/s 115JB(2)(ix), for the years starting from the year in which company has become sick industrial company ending with the year in which entire net-worth of the company becomes equal or exceeds the accumulated losses.

(b) As per AS-22 "Accounting for Taxes on Income" Deferred Tax Assets are recognized and carried forward to the extent that there is a reasonable certainty that sufficient future taxable income will be available against which Deferred Tax Assets can be realised. Deferred Tax Asset are reviewed at each Balance Sheet date.

5. MISCELLANEOUS:

There are no claims for interest payment from any supplier with reference to interest on delayed payments to Small and Ancillary Industrial Undertakings Ordinance, 1992.

6. Micro, Small and Medium Enterprises Development Act, 2006 In accordance with the Notification No. GSR 719 ( E ) dt 16.11.2007, issued by the Ministry of Corporate Affairs, certain disclosures are required to be made relating to Micro and Small Enterprises as defined under the Micro, Small and Medium Development Act 2006. The Company is in the process of compiling relevant information from its suppliers about their coverage under the said Act. Since the relevant information is still not available, no disclosures have been made in the accounts.

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

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Mar 31, 2012

1 Contingent Liabilities :

Claims against the Company not acknowledged as debts hence not provided

As at As at 31.03.2012 31.03.2011 (Rs. in Lacs) (Rs. in Lacs)

(i) Suits filed by Trade Payable - 0.14

(ii) Bank Guarantee given to the GPCB 1.00 1.00

2. FIXED ASSETS:

Land, Buildings, Plant & Machinery and Furniture & Fixture were revalued for Rs. 1255.54 lacs as on 31.03.1993 and Rs. 925.77 lacs as on 31.03.2004. The revaluation in respect of these assets on based on current replacement cost by the Approved Valuer appointed for the purpose. As a result, the increased book value of such assets as above has been transferred to Revaluation Reserve in respective year.

3. TAXATION:

(a) No provision has been made for current income tax due to carry forward benefit of profit earned u/s 115JB(2)(ix), for the years starting from the year in which company has become sick industrial company ending with the year in which entire net-worth of the company becomes equal or exceeds the accumulated losses.

4. MISCELLANEOUS:

There are no claims for interest payment from any supplier with reference to interest on delayed payments to Small and Ancillary Industrial Undertakings Ordinance, 1992.

5. Micro, Small and Medium Enterprises Development Act, 2006 In accordance with the Notification No. GSR 719 (E) dt 16.11.2007, issued by the Ministry of Corporate Affairs, certain disclosures are required to be made relating to Micro and Small Enterprises as defined under the Micro, Small and Medium Development Act 2006. The Company is in the process of compiling relevant information from its suppliers about their coverage under the said Act. Since the relevant information is still not available, no disclosures have been made in the accounts.

6. The Revised Schedule VI has become effective from 1st April, 2011 for the preparation of financial statements. This has significantly impacted the disclosure and presentation made in the financial statements.

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

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Mar 31, 2010

1. Application Money for Warrants :

The company issued 22,50,000 Nos of convertible warrants on preferential basis of Rs.10/- each at Rs. 25/- (Including a premium of Rs. 15/- per warrants) and received 10% advance money of Rs. 56.25 lacs with an option to convert into equity shares within 18 months as per SEBI guidelines. Out of above 22,50,000 Nos convertible warrants the company received application to convert 10,00,000 warrants in to Equity Shares with balance amount of Rs.225.00 lacs

The Company also issued 22,50,000 Nos of convertible warrants on preferential basis of Rs.10/-each and raised warrant application money of Rs.56.25 lacs(i.e.25% per Warrants with an option to convert into equity shares within 18 months as per SEBI Guidelines in the year 2009-10

2. Contingent Liabilities:

As at 31st March 2010 As at 31st March 2009 (Rs. in Lacs) (Rs. in Lacs)

Claims against the Company not acknowledge as debts hence not provided

(i) Demand Notice from Gujarat Electricity Board (GEB) Nil 14.63

(ii) Central Excise Demands (Interest) Nil 3.00

(iii) Suits filed by creditors 0.42 4.75

(iv) Income Tax Liability for the A.Y. 2007-08 which the company 80.32 has disputed and appeal against which is pending before CIT(A). Nil

3. Fixed Assets :

Land, Buildings, Plant & Machinery and Furniture & Fixture were revalued for Rs. 1255.54 lacs as on 31.03.1993 and Rs. 925.77 lacs as on 31.03.2004. The revaluation in respect of these assets on based on current replacement cost by the Approved Valuer appointed for the purpose. As a result, the increased book value of such assets as above has been transferred to Revaluation Reserve in respective year.

4. Taxation :

(a) No provision has been made for current income tax due to carry forward benefit of profit earned u/s 115JB(2)(ix), for the years starting from the year in which company has become sick industrial company ending with the year in which entire net-worth of the company becomes equal or exceeds the accumulated losses.

(b) As per AS-22 "Accounting for Taxes on Income" Deferred Tax Assets are recognized and carried forward to the extent that there is a reasonable certainty that sufficient future taxable income will be available against which Deferred Tax Assets can be realised. Deferred Tax Asset are reviewed at each Balance Sheet date.

5. Miscellaneous :

a) There are no claims for interest payment from any supplier with reference to interest on delayed payments to Small and Ancillary Industrial Undertakings Ordinance, 1992.

b) Sales includes Manufacturing Facility Receipt of Rs. 559.33 Lac (Previous Year Rs. 677.08 Lac)

c) Other income includes Rs. 7.30 Lac of Sundry Balances Written back, (Previous Year Rs. 4.89 Lac) Interest on Fixed Deposit Rs. 3.66 Lac (Previous Year Rs. 2.88 Lac) & Others Miscellaneous income Rs. 62.02 Lac (Previous Year Rs. 47.67 Lac)

d) The company has not identified transactions with small scale industrial undertakings during the year.

6. Disclosure as required by Accounting Standard 19, "Leases" issued by the Institute of Chartered Accountants of India are given below:

(a) Operating Lease:

Where the Company is a Lessor

Details in respect of assets given on operating lease: Factory Building and Plant & Machinery

The assets given on lease are cancelable and agreed for 36 months and generally and are usually renewable by mutual consent, on mutually agreeable terms.

The total of future minimum non-cancelable leave & license fee receivable as of the Balance Sheet dates are as under:

Not later than one year – Rs. 6.00 lacs

Later than one year but not later than two years from 01.04.2010 – Rs.NIL

In addition the company is entitled for reimbursement of expenses @ Rs.8,500/- per hour for the usages of manufacturing facility.

The aggregate lease rentals are recognized in the Profit & Loss account for the year Rs.6.00 lacs and gross manufacturing receipts of Rs.559.33 lacs Initial direct costs are recognized as an expense in the year in which these are incurred.

Note : Components and Spare Parts referred to in para 4 D (c) of Part II of Schedule VI to the Companies Act, 1956 are assumed to be those incorporated in goods produced and not those used for maintenance of Plant and Machinery.

7. Previous year's figures have been regrouped / recast wherever necessary.