Notes to Accounts of Pakka Ltd.

Mar 31, 2025

1.2.13. Provisions, Contingent Liabilities and Contingent Assets

The Company estimates the provisions that have present obligations as
a result of past events and it is probable that outflow of resources will be
required to settle the obligations. These provisions are reviewed at the end of
each reporting period and are adjusted to reflect the current best estimates.

The Company uses significant judgements to assess contingent liabilities.
Contingent liabilities are disclosed 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 Group or a present obligation that arises
from past events where it is either not probable that an outflow of resources
will be required to settle the obligation or a reliable estimate of the amount
cannot be made. Contingent assets are neither recognised nor disclosed in
the standalone financial statements.

1.2.14. Fair Value measurement

Fair value is the price that would be received to sell an asset or paid to
transfer a liability in an orderly transaction between market participants
at the measurement date. The fair value measurement is based on the
presumption that the transaction to sell the asset or transfer the liability
takes place either:

¦ In the principal market for the asset or liability, or

¦ In the absence of a principal market, in the most advantageous market
which can be accessed by the Company for the asset or liability.

The fair value of an asset or a liability is measured using the assumptions that
market participants would use when pricing the asset or liability, assuming
that market participants act in their economic best interest.

The Company uses valuation techniques that are appropriate in the
circumstances and for which sufficient data are available to measure fair
value, maximizing the use of relevant observable inputs and minimizing the
use of unobservable inputs.

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

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

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

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

For assets and liabilities that are recognized in the Standalone Financial
Statements on a recurring basis, the Company determines whether
transfers have occurred between levels in the hierarchy by re-assessing
categorization (based on the lowest level input that is significant to the fair
value measurement as a whole) at the end of each reporting period.

l.2.15Financial Assets

Initial recognition and measurement

All financial assets are recognized initially at fair value plus, in the case of
financial assets not recorded at fair value through profit or loss, transaction
costs that are attributable to the acquisition of the financial asset.

Subsequent measurement

Subsequent measurement is determined with reference to the classification
of the respective financial assets. Based on the business model for managing

the financial assets and the contractual cash flow characteristics of the
financial asset, the Company classifies financial assets as subsequently
measured at amortized cost, fair value through other comprehensive income
or fair value through profit and loss.

Debt instruments at amortized cost

Debt instruments such as trade and other receivables, security deposits
and loans given are measured at the amortized cost if both the following
conditions are met:

¦ The asset is held within a business model whose objective is to hold
assets for collecting contractual cash flows, and

¦ Contractual terms of the asset give rise on specified dates to cash
flows that are solely payments of principal and interest (SPPI) on the
principal amount outstanding.

After initial measurement, such financial assets are subsequently measured
at amortized cost using the effective interest rate (EIR) method. Amortized
cost is calculated by taking into account any discount or premium on
acquisition and fees or costs that are an integral part of the EIR. The EIR
amortization is included in finance income in the profit or loss. The losses
arising from impairment are recognized in the profit or loss.

Debt instruments at Fair value through Other Comprehensive Income
(FVOCI)

A ‘debt instrument'' is classified as at the FVTOCI if both of the following
criteria are met:

¦ The objective of the business model is achieved both by collecting
contractual cash flows and selling the financial assets, and

¦ the contractual terms of the financial asset give rise on specified dates
to cash flows that are solely payments of principal and interest (SPPI)
on the principal amount outstanding

Debt instruments included within the FVTOCI category are measured initially
as well as at each reporting date at fair value. Fair value movements are
recognized in the other comprehensive income (OCI).

Debt instruments at Fair value through Profit or Loss (FVTPL)

FVTPL is a residual category for debt instruments excluding investments in
subsidiary companies. Any debt instrument, which does not meet the criteria
for categorization as at amortized cost or as FVTOCI, is classified as at FVTPL.

After initial measurement, any fair value changes including any interest
income, foreign exchange gain and losses, impairment losses and other net
gains and losses are recognized in the Statement of Profit and Loss.

Equity investments

All equity investments in scope of Ind-AS 109 are measured at fair value.
Equity instruments which are held for trading are classified as at FVTPL. For
all other equity instruments, the company decides to classify the same either
as at FVTOCI or FVTPL. The company makes such election on an instrument-
by-instrument basis. The classification is made on initial recognition and
is irrevocable.

Equity instruments included within the FVTPL category are measured at fair
value with all changes recognized in the Profit or loss.

De-recognition

A financial asset (or, where applicable, a part of a financial asset or part of a
group of similar financial assets) is primarily derecognized (i.e. removed from
the Company''s Balance Sheet) when

¦ The rights to receive cash flows from the asset have expired, or

¦ The Company has transferred its rights to receive cash flows from
the asset or has assumed an obligation to pay the received cash flows
in full without material delay to a third party under a ‘pass-through''
arrangement; and either:

¦ The Company has transferred substantially all the risks and rewards of
the asset, or

¦ The Company has neither transferred nor retained substantially all the
risks and rewards of the asset, but has transferred control of the asset.

On de-recognition, any gains or losses on all debt instruments (other than
debt instruments measured at FVTOCI) and equity instruments (measured

at FVTPL) are recognized in the Statement of Profit and Loss. Gains and
losses in respect of debt instruments measured at FVTOCI and that are
accumulated in OCI are reclassified to profit or loss on de-recognition. Gains
or losses on equity instruments measured at FVTOCI that are recognized and
accumulated in OCI are not reclassified to profit or loss on de-recognition.

1.2.16. Impairment of financial assets

The Company applies expected credit loss (ECL) model for measurement and
recognition of impairment loss on the following financial assets and credit
risk exposure:

a) Financial assets that are debt instruments, and are measured at
amortized cost e.g., loans, debt securities, deposits, trade receivables
and bank balance.

b) Financial assets measured at fair value through other
comprehensive income.

In case of other assets (listed as a) above), the company determines if there
has been a significant increase in credit risk of the financial asset since initial
recognition. If the credit risk of such assets has not increased significantly, an
amount equal to 12-month ECL is measured and recognized as loss allowance.
However, if credit risk has increased significantly, an amount equal to lifetime
ECL is measured and recognized as loss allowance.

1.2.17. Financial Liabilities

Initial recognition and measurement

All financial liabilities are recognized initially at fair value and, in the case ofloans
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.

Subsequent measurement

The measurement of financial liabilities depends on their classification, as
described below:

Financial Liabilities at Fair Value through Profit or Loss (FVTPL)

Financial liabilities at fair value through profit or loss include financial liabilities
designated upon initial recognition as at fair value through profit or loss.

Financial liabilities designated upon initial recognition at fair value through
profit or loss are designated at the initial date of recognition, and only if the
criteria in Ind-AS 109 are satisfied. For liabilities designated as FVTPL, fair
value gains/ losses attributable to changes in own credit risk is recognized
in OCI. These gains/ losses are not subsequently transferred to profit or loss.
However, the company may transfer the cumulative gain or loss within equity.
All other changes in fair value of such liability are recognized in the statement
of profit or loss.

Financial Liabilities at amortized cost

Financial liabilities classified and measured at amortized cost such as loans
and borrowings are initially recognized at fair value, net of transaction
cost incurred. After initial recognition, financial liabilities are subsequently
measured at amortized cost using the Effective interest rate (EIR) method.
Gains and losses are recognized in profit or loss when the liabilities are
derecognized as well as through the EIR amortization process.

Amortized cost is calculated by taking into account any discount or premium
on acquisition and fees or costs that are an integral part of the EIR. The EIR
amortization is included as finance costs in the statement of profit and loss.

Derecognition

A financial liability is derecognized when the obligation under the liability
is discharged or cancelled or expires. When an existing financial liability is
replaced by another from the same lender on substantially different terms, or
the terms of an existing liability are substantially modified, such an exchange
or modification is treated as the de-recognition of the original liability and
the recognition of a new liability. The difference in the respective carrying
amounts is recognized in the statement of profit or loss.

Offsetting of financial instruments

Financial assets and financial liabilities are offset, and the net amount is
reported in the standalone balance sheet if there is a currently enforceable

legal right to offset the recognized amounts and there is an intention to settle
on a net basis, to realize the assets and settle the liabilities simultaneously.
The legally enforceable right must not be contingent on future events and
must be enforceable in the normal course of business and in the event of
default, insolvency or bankruptcy of the company, or the counterparty.

Borrowings

Borrowings are initially recognized at fair value, net of transaction costs
incurred. Borrowings are subsequently measured at amortized cost. Any
differences between the proceeds (net of transaction costs) and the
redemption amount is recognized in Profit or loss over the period of the
borrowing using the effective interest method. Fees paid on the establishment
of loan facilities are recognized as transaction costs of the loan to the extent
that it is probable that some or all of the facilities will be drawn down. In this
case, the fee is deferred until the drawdown occurs.

The borrowings are removed from the Balance sheet when the obligation
specified in the contract is discharged, cancelled or expired. The difference
between the carrying amount of the financial liability that has been
extinguished or transferred to another party and the consideration paid
including any noncash asset transferred or liabilities assumed, is recognized
in profit or loss as other gains/(losses).

Borrowings are classified as current liabilities unless the group has an
unconditional right to defer settlement of the liability of at least 12 months
after the reporting period. Where there is a breach of a material provision of
a long-term loan arrangement on or before the end of the reporting period
with the effect that the liability becomes payable on demand on the reporting
date, the entity does not classify the liability as current, if the lender agreed,
after the reporting period and before the approval of the Standalone Financial
Statement for issue, not to demand payment as a consequence of the breach.

1.2.18.Borrowing Cost

Borrowing costs directly attributable to the construction or production of
a qualifying asset are capitalized during the period of time that is required
for the acquisition, construction or production of an asset that necessarily

takes a substantial period of time to get ready for its intended use or sale
are capitalized as part of the cost of the asset. All other borrowing costs
are expensed in the period in which they occur. Borrowing costs consist of
interest and other costs (including exchange differences relating to foreign
currency borrowings to the extent that they are regarded as an adjustment
to interest costs) that an entity incurs in connection with the borrowing
of funds.

1.2.19.Taxes on Income

Current and Deferred Tax

Current tax is the amount of tax payable determined in accordance with the
applicable tax rates and provisions of the Income Tax Act, 1961 and other
applicable tax laws.

Deferred tax is recognized on differences between the carrying amounts of
assets and liabilities in the Balance sheet and the corresponding tax bases
used in the computation of taxable profit and are accounted for using the
liability method. Deferred tax liabilities are generally recognized for all taxable
temporary differences, and deferred tax assets are generally recognized for
all deductible temporary differences, carry forward tax losses and allowances
to the extent that it is probable that future taxable profits will be available
against which those deductible temporary differences, carry forward tax
losses and allowances can be utilized. Deferred tax assets and liabilities are
measured at the applicable tax rates. Deferred tax assets and deferred tax
liabilities are off set, and presented as net.

Current and deferred taxes relating to items directly recognized in reserves
are recognized in reserves and not in the Statement of Profit and Loss.

Unused tax credit

Minimum Alternate Tax (MAT) paid in accordance with the tax laws, which
gives future economic benefits in the form of adjustment to future income
tax liability, is considered as an asset if there is convincing evidence that
the Company will pay normal income tax. Accordingly, MAT is recognized as
a deferred tax asset in the Balance Sheet when it is probable that future
economic benefit associated with it will flow to the Company.

1.2.20. Earnings per share

Basic earnings per share is computed by dividing the profit / (loss) after tax
(including the post-tax effect of extraordinary items, if any) by the weighted
average number of equity shares outstanding during the year. Diluted earnings
per share is computed by dividing the profit / (loss) after tax (including
the post-tax effect of extraordinary items, if any) as adjusted for dividend,
interest and other charges to expense or income (net of any attributable
taxes) relating to the dilutive potential equity shares, by the weighted average
number of equity shares considered for deriving basic earnings per share
and the weighted average number of equity shares which could have been
issued on the conversion of all dilutive potential equity shares.

1.2.21. Cash and Cash equivalents

For the purpose of presentation in statement of cash flows, cash and
cash equivalents includes cash on hand, deposit held at call with financial
institution, other short term, highly liquid investments with original maturities
of 3 months or less that are readily convertible to known amounts of cash
and which are subject to an insignificant risk of changes in value, and bank
overdrafts. Bank Overdrafts are shown within borrowings in current liabilities
in Balance sheet.

1.2.22. Cash Flows

Cash flows are reported using the indirect method, whereby profit / (loss)
before extraordinary items and tax is adjusted for the effects of transactions
of non-cash nature and any deferrals or accruals of past or future cash

receipts or payments. The cash flows from operating, investing and financing
activities of the Company are segregated based on the available information.

1.2.23.Segment Reporting

An operating segment is a component of the Company that engages in
business activities from which it may earn revenues and incur expenses,
including revenues and expenses that relate to transactions with any of the
Company''s other components, and for which discrete financial information is
available. Operating segments are reported in a manner consistent with the
internal reporting provided to the chief operating decision maker.

The chief operating decision maker is responsible for allocating resources
and assessing performance of the operating segments and has been
identified as the Managing Director of the Company.

1.2.24. Dividend

Final dividend on shares is recorded as a liability on the date of approval by
the shareholders and Interim dividends are recorded as a liability on the date
of declaration by the Company''s Board of Directors.

1.2.25. Recent Pronouncements:

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

2. Property, Plant and Equipment (Contd.)

(i) Leased Assets

The lease term in respect of assets acquired under finance leases expires within 56-72 years.

(ii) Assets given as security for borrowings

All the items of property, plant and equipment of the Company have been given to lenders as security for various borrowing facilities. (Refer Note 17)

(iii) Impairment

During the previous year, the Company had assessed recoverable amount of its property, plant and equipment by estimating its value in use. Based on the aforementioned
assessment it has been concluded that the recoverable amount is higher than the respective carrying amount except the moulded product division wherein based on
assessment, the impairment loss of Rs 420.42 lakhs was identified during the previous year and accordingly, the goodwill recognised of Rs 408.80 Lakhs relating to
Moulded products division was fully impaired.

(iv) Other Notes:

a) Property, Plant and Equipment values are carried in the Standalone financial statements on their Historic value (Cost of Acquisition).

b) Title deeds of all immovable properties of land and buildings which are freehold are in the name of the Company.

c) For capital commitments, Refer Note 47

d) The Company has not revalued any of its Property, plant and equipment and intangible assets during the year.

e) The company does not have any Benami property, where any proceeding has been initiated or pending against the company for holding any Benami property

17A. Borrowings (Contd.)

(a) Term Loan from Banks

Term Loan from Banks were repaid during the year.

(b) Loans from Non Banking Finance Company

i. Loan from Axis Finance Limited - The loan from Axis Finance Limited is repayable in 20 quarterly installments commencing from 31^st December 2025 . Tenor of
the term loan is 7 years from the date of initial disbursement. Rate of Interest is 9.75 %

The loan is secured by -

1. First Pari Passu charge by way of mortgage over the movable and immovable fixed assets of the Borrower , both present and future

2. Second Pari Passu charge by way of hypothecation over the current assets of the Borrower , both present and future

3. Personal guarantee of Mr.Ved Krishna

The company has created & registered charge of Rs.75 Crores for the said loan.

ii. Loan from Aditya Birla Finance Limited - The loan from Aditya Birla Finance Limited is repayable in 20 quarterly installments commencing 30^th June 2024. The
Applicable interest shall be 10.50 % p.a. payable monthly in arrears.

This loan is secured by -

1. First Pari Passu charge by way of hypothecation and mortgage over the fixed movable and immovable assets of the Borrower respectively, both present
and future

2. Second Pari Passu charge by way of hypothecation over the current assets of the Borrower, both present and future

3. Irrevocable and Unconditional Personal Guarantee of Promoter

The company has created & registered charge of Rs.50 Crores in relation to the said loan."

iii. Loan from Pradeshiya Industrial & Investment Corporation of UP Limited (PICUP) -

The above loan is interest free, repayable in the FY 2027-28 and is secured by bank guarantee.

During last year, the tenure of two loans out of total of four loan availed from Pic UP due for repayment in FY 2024-25 was extended and the said loans are now
repayable in FY 2027-28 and The resultant impact of Rs. 18.06 lakhs has been recognized in the Statement of Profit and Loss during previous year.

iv. Loans from Related parties -

The loan from Yash Agro Products Limited & Loan from Ved Krishna are repayable after repayment of loan from Banks (UCO Bank & United Bank).

The loan from Ved Krishna is Interest-free loan.

The loan from Yash Agro Products Limited carries interest rate of 10 %.

(a) Working Capital Loans from Banks -

i. Working Capital Demand Loan (WCDL) From HDFC Bank -

The company has availed WCDL of Rs.60 crores during the year. The rate of interest for the same is 8.75% p.a.or as may be decided at the time of WCDL disbursal
time to time.

This is secured by -

Current Assets : First Pari Passu charge with other WC lenders over entire current assets of the company consisting of Raw Material, Stock in Process, FG, Stores
and spares and receivables.

Movable Fixed Assets : Second Pari Passu charge on entire current and future Movable fixed assets of the Company.

Factory Land and Building : Second Pari Passu charge with other lenders on Company Plant, Property Land and Building of the Company.

Personal Guarantee: Personal Guarantee of Shri. Ved Krishna and Mrs. Manjula Jhunjhunwala
Corporate Guarantee : Corporate Guarantee of M/s Yash Agro Products Ltd and M/s Satori Global Ltd"

ii. Cash Credit from Axis Bank -

Cash Credit availed during the year amounted to Rs.40 crores. The applicable interest rate ranges from 9.20% to 9.30%.

This is secured by -

- Primary: First pari passu charge by way of hypothecation over the current assets of the Borrower, present and future.

- Collateral: Second pari passu charge by way of mortgage over the fixed movable and immovable assets of the Borrower, present and future.

1. Land Building at Yash Nagar parakhan Faizabad Uttar Pradesh224135, Mohalla -Rampur, Halwara, Plot no. 149, 199, 40, 185, 187 (Ga), 242, 196, 187 (Ang0, 128, 139,
142 (kha), 144, 174, 184, 187, 384, 187 (k), 187 (kha), 187 (gha), 183, 195

2. Parakahan and khata no.283, plot no. 21, 22, 23 Khata no.25, Plot no. 4mi, 5mi, 6mi, 7mi. Mauja Rampur Halwara & Parakhan, Per Haweli Awadh Distt-Faizabad Now
Ayodhya). Total (2761 Hec). The property stands in the name of borrower and has RV of Rs 94.92 Cr as per valuation dated 22.01.2025.

37. Employee Benefit Disclosures (Contd.)

i) Mortality rates considered are as per the published rates in the India Assured Lives Mortality 2012-14 (P.Y. 2012-14): India Assured Lives Mortality (2006-08)
(Modified) ULT. ) mortality table.

ii) The discount rate should be based upon the market yields available on Government bonds at the accounting date with a term that matches that of the liabilities.

iii) The contribution made by the Company for funding its liabilities for gratuity during the financial year 2024-25 amounts to Rs.110.00 lakhs (PY Rs. 200.00 Lakhs).

iv) The expected rate of return on plan assets is based on market expectation, at the beginning of the year, for returns over entire life of the related obligation.

v) The assumption of future salary increases, considered in actuarial valuation, takes into account of inflation, seniority, promotion, supply and demand and other
relevant factors.

d) Terms and conditions of transactions with related parties

Transactions relating to dividend were on the same terms and conditions that applied to other shareholders. The transactions with related parties are made in the
ordinary course of business. No provisions are held against receivables from related parties.Outstanding balances at the year-end are unsecured and interest free and
settlement occurs in cash.

e) Other Notes

No amount has been written off/back or provision made for loss allowance during the year in respect of related parties except as disclosed above.

39. Financial Instruments
(i) Capital Management

The Company''s capital management is intended to create value for shareholders by facilitating the meeting of long-term and short-term goals of the Company.
The Company determines the amount of capital required on the basis of annual operating plans and long-term product and other strategic investment plans. The funding
requirements are met through equity and other long-term/short-term borrowings. The Company''s policy is aimed at combination of short-term and long-term borrowings.
The Company monitors the capital structure on the basis of total debt to equity ratio and maturity profile of the overall debt portfolio of the Company.
Total borrowings includes all long and short-term borrowings as disclosed in notes 17 to the financial statements.

Calculation of Fair Values

The fair values of the financial assets and liabilities are defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction

between market participants at the measurement date. The following methods and assumptions have been used to estimate the fair values of financial instruments:

a) The fair values of investment in quoted investment in equity shares is based on the current bid price of respective investment as at the reporting date.

b) The fair value of the long-term borrowings carrying floating-rate of interest is not impacted due to interest rate changes and will not be significantly different from
their carrying amounts as there is no significant change in the underlying credit risk of the Company (since the date of inception of the loans)

c) The fair value of loans from banks and other financial indebtedness as well as other non current financial liabilities is estimated by discounting future cash flows
using rates currently available for debt or similar terms and remaining maturities.

d) Cash and cash equivalents, trade receivables, other financial assets, trade payables and other financial liabilities have fair values that approximate to their carrying
amounts due to their short-term nature.

Fair value measurements recognized in the balance sheet:

The following table provides an analysis of financial instruments that are measured subsequent to initial recognition at fair value, grouped into Levels 1 to 3 based on
the degree to which the fair value is observable.

- Level 1 fair value measurements are those derived from quoted prices (unadjusted) in active markets for identical assets or liabilities.

- Level 2 fair value measurements are those derived from inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either
directly (i.e. as prices) or indirectly (i.e. derived from prices).

- Level 3 fair value measurements are those derived from valuation techniques that include inputs for the asset or liability that are not based on observable market
data (unobservable inputs).

The Company''s principal financial liabilities comprise of loan from banks and financial institutions, and trade payables. The main purpose of these financial liabilities is
to raise finance for the Company''s operations. The Company has various financial assets such as trade receivables, cash and short term deposits, which arise directly
from its operations.

The main risks arising from Company''s financial instruments are foreign currency risk, credit risk, market risk, interest rate risk and liquidity risk. The Board of
Directors review and agree policies for managing each of these risks.

(a) Credit risk:

Credit risk is the risk of financial loss to the Company if a customer or counterparty to a financial instrument fails to meet its contractual obligations, and arises
principally from the Company''s trade and other receivables, cash and cash equivalents and other bank balances. The maximum exposure to credit risk in case of
all the financial instruments covered below is restricted to their respective carrying amount.

Trade and Other receivables

Customer credit is managed by each business unit subject to the Company''s established policies, procedures and control relating to customer credit risk
management. Trade receivables are non-interest bearing and the agreed divisional payment terms are : (i) Paper & Pulp - Domestic Sale 20 days, Export Sale
30-90 days. (ii) Moulded - 30 days. Credit limits are established for all customers based on internal rating criteria. Outstanding customer receivables are
regularly monitored.

The Company measures the expected credit loss of trade receivables based on historical trend, industry practices and the business environment in which the
entity operates. Loss rates are based on actual credit loss experience and past trends.

At 31^st March, 2025, the Company''s top three customers accounted for Rs.1,537.30 lakhs of the trade and other receivables carrying amount (P.Y. : Rs.1082.53
lakhs).

39. Financial Instruments (Contd.)

Other financial assets

The Company maintains exposure in cash and cash equivalents and term deposits with banks.

The Company held cash and cash equivalents of Rs.6515.20 lakhs at 31^st March, 2025 (P.Y.: Rs.5354.13 lakhs). Cash and cash equivalents are held with reputable
and credit-worthy banks.

Individual risk limits are set for each counter party based on financial position, credit rating and past experience. Credit limits and concentration of exposures are
actively monitored by the Management of the Company.

Other than trade and other receivables, the Company has no other financial assets that are past due but not impaired.

(b) Market risk:

Market Risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk comprises
three types of risk: currency risk, interest rate risk and price risk.

(I) Foreign currency risk

The Company is exposed to currency risk on account of its operating and financing activities. The functional currency of the Company is Indian Rupee.
Company''s exposure is mainly denominated in U.S. dollars (USD). The USD exchange rate has changed substantially in recent periods and may continue to
fluctuate substantially in the future.

The Company does not use derivative financial instruments for trading or speculative purposes.

The carrying amounts of the Company''s financial assets and financial liabilities denominated in foreign currencies at the reporting date are as follows:

The following table details the Company''s sensitivity to a 5% increase and decrease in the functional currency against the relevant foreign currency receivables
and payables. 5% is the sensitivity rate used when reporting foreign currency risk internally to key management personnel and represents management''s
assessment of the reasonably possible change in foreign exchange rates. The sensitivity analysis includes only outstanding foreign currency denominated
monetary items and adjusts their translation at the period end for a 5% change in foreign currency rates. A positive number below indicates an increase
in profit and other equity where the respective functional currency strengthens by 5% against the relevant foreign currency. For a 5% weakening of the
functional currency against the relevant currency, there would be an equal and opposite impact on the profit and other equity, and the balances below would
be negative.

(II) Interest rate risk:

Interest rate risk is measured by using the cash flow sensitivity for changes in variable interest rates. Any movement in the reference rates could have an
impact on the Company''s cash flows as well as costs.

Interest rate sensitivity analysis:

The Company is exposed to interest rate risk because company borrow funds at both fixed and floating interest rates. The risk is managed by the Company
by maintaining an appropriate mix between fixed and floating rate of borrowings.

The Company''s borrowings which are contracted at a fixed rate , are carried at amortised cost. Further these borrowings are not affected due to interest rate
risk as defined in Ind AS 107 as neither the carrying amount nor the future cash flows will fluctuate in the event of a change in market interest rates.

The risk estimates provided assume a parallel shift of 25 basis points interest rate. This calculation also assumes that the change occurs at the balance sheet
date and has been calculated based on risk exposures outstanding as at that date. The period end balances are not necessarily representative of the average
debt outstanding during the period.

This analysis assumes that all other variables, in particular foreign currency rates, remain constant.

(Note: The impact is indicated on the profit/(loss) before tax basis)."

(III) Liquidity risk:

The Company follows a conservative policy of ensuring sufficient liquidity at all times through a strategy of profitable growth, efficient liquidity at all times
through a strategy of profitable growth, efficient working capital management as well as prudent capital expenditure. The Company has a cash credit facility
with banks to support any temporary funding requirements.

The Company believes that current cash and cash equivalents, tied up borrowing lines and cash flow that is generated from operations is sufficient to meet
requirements. Accordingly, liquidity risk is perceived to be low.

Liquidity table:

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

The following table shows the maturity analysis of the Company''s financial liabilities based on contractually agreed undiscounted cash flows along with its
carrying value as at the Balance Sheet date.

(IV) Other price risk:

The Company is not exposed to any significant equity price risks arising from equity investments, as on 31^st March 2025. Equity investments are held for strategic
rather than trading purposes. The Company does not actively trade these investments.

Equity price sensitivity analysis:

There is minimum exposure to equity price risks as at the reporting date or as at the previous reporting date.

40.Segmental Information
Business Segment

The Company has determined following reporting segments based on the information reviewed by the Company''s Chief Operating Decision Maker (''CODM'').

a) Paper, Pulp and other products

b) Moulded Products

43. Disclosure in terms of Ind AS 102 on the Share-based Payment Arrangement
A. Description of share-based payement arrangement
Share Option Programme (Equity Settled)

The members of the Company had approved the YASH TEAM STOCK OPTION PLAN - 2021'' (‘TSOP''/ ‘Plan'') at the extra ordinary general meeting held on 6^th May
2022.The plan envisaged grant of share options to eligible employees at market price as defined in Securities and Exchange Board of India (Share Based Employee
Benefits and Sweat Equity) Regulations, 2021 (‘SBEB Regulations'').The Plan covers eligible employees (except promoters or those belonging to the promoters'' group,
independent directors and directors who either by himself or through his relatives or through any body-corporate, directly or indirectly holds more than 10%of the
outstanding Shares of the Company). Under the Scheme, the Nomination and Remuneration Committee of directors of the Company, administers the Scheme and
grants stock options to eligible directors or employees of the Company.The Committee determines the employees eligible for receiving the options and the number of
options to be granted subject to overall limit of 20,00,000 (Twenty Lakhs Only) equity shares of the Company.

(i) Tranch-I: Pursuant to above, during FY 2022-23, the Company has granted 14,16,600 options at an exercise price of INR 82.21 per option, to the employees of the
Company. Under the terms of the plan, these options are vested on a graded vesting basis over a maximum period of 1 year from the date of grant and are to be
exercised either in part(s) or full, within a maximum period of 3.5 years from the date of last vesting. During the year the Company has allotted 10,89,600 equity
shares at Rs. 82.21 per equity share upon exercise of share options vested in terms of TSOP -2021 plan. The remaining options would have to be exercised by the
concerned eligible team of the Company, before the end date i.e., 31^st December, 2026 from the date of respective vesting.

(ii) Tranch-II: Pursuant to above, during FY 2023-24, the Company has granted 1,25,400 options at an exercise price of INR 118.13 per option, to the employees of the
Company. Under the terms of the plan, these options are vested on a graded vesting basis over a maximum period of 1 year from the date of grant and are to be
exercised either in part(s) or full, within a maximum period of 2.5 years from the date of last vesting.The said options would have to be exercised by the concerned
eligible team of the Company, before the end date i.e., 31^st December, 2026 from the date of respective vesting.

(iii) Tranch-III: Pursuant to above, during FY 2024-25, the Company has granted 22,500 options at an exercise price of INR 239.63 per option, to the employees of the
Company. Under the terms of the plan, these options are vested on a graded vesting basis over a maximum period of 1 year from the date of grant and are to be
exercised either in part(s) or full, within a maximum period of 1.5 years from the date of last vesting.The said options would have to be exercised by the concerned
eligible team of the Company, before the end date i.e., 31^st December, 2026 from the date of respective vesting.

50. Other disclosures as per amended Schedule III-

(i) The Company do not have any transactions with Companies stuck off as per section 248 of the Companies Act, 2013.

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

(iii) The Company has not been declared wilful defaulter by any bank or financial institution or other lender.

(iv) The company has no such transaction which is not recorded in the books of accounts that has been surrendered or disclosed as income during the year in the tax
assessments under the Income Tax Act, 1961 (such as, search or survey or any other relevant provisions of the Income Tax Act, 1961.

(v) There is no Scheme of Arrangements approved by the Competent Authority in terms of sections 230 to 237of the Companies Act, 2013

(vi) During the year, the Company repaid two term loans, However, filing of satisfaction of charge related to these loans is still pending. There are no other charges that
are yet to be registered with the Registrar of Companies beyond the statutory period

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

(a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the company (Ultimate Beneficiaries) or

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

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

(a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party (Ultimate
Beneficiaries) or

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

(ix) The Company has complied with the requirements of clause 87 of section 2 of the Companies Act 2013 read with Compliance (Restriction on number of layers)
Rules, 2017.

51. Approval of financial statements:

The financial statements were approved for issue by the Board of Directors on , 30 May, 2025
As per our attached report of even date For and on behalf of the Board

For C N K & Associates LLP Jagdeep Hira Gautam Ghosh

Chartered Accountants Managing Director Executive Director

Firm Registration No.: 101961W/W-100036 DIN: 07639849 DIN: 10371300

Place: Ayodhya Place: Ayodhya

Date: 30.05.2025 Date: 30.05.2025

Diwakar P. Sapre Neetika Suryawanshi Sachin Kumar Srivastava

Partner Chief Financial Officer Company Secretary

Membership No.: 040740

Place: Mumbai Place: Ayodhya Place: Ayodhya

Date: 30.05.2025 Date: 30.05.2025 Date: 30.05.2025

---

Mar 31, 2024

1.2.14.Fair Value measurement

1.2.13.Provisions, Contingent Liabilities and Contingent Assets

The Company estimates the provisions that have present obligations as a result of past events and it is probable that outflow of resources will be required to settle the obligations. These provisions are reviewed at the end of each reporting period and are adjusted to reflect the current best estimates.

The Company uses significant judgements to assess contingent liabilities. Contingent liabilities are disclosed 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 Group or a present obligation that arises from past events where it is either not probable that an outflow of resources will be required to settle the obligation or a reliable estimate of the amount cannot be made. Contingent assets are neither recognised nor disclosed in the standalone financial statements.

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The fair value measurement is based on the presumption that the transaction to sell the asset or transfer the liability takes place either:

> In the principal market for the asset or liability, or

> In the absence of a principal market, in the most advantageous market which can be accessed by the Company for the asset or liability.

The fair value of an asset or a liability is measured using the assumptions that market participants would use when pricing the asset or liability, assuming that market participants act in their economic best interest.

The Company uses valuation techniques that are appropriate in the circumstances and for which sufficient data are available to measure fair value, maximizing the use of relevant observable inputs and minimizing the use of unobservable inputs.

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

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

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

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

For assets and liabilities that are recognized in the Standalone Financial Statements on a recurring basis, the Company determines whether transfers have occurred between levels in the hierarchy by re-assessing categorization (based on the lowest level input that is significant to the fair value measurement as a whole) at the end of each reporting period.

Initial recognition and measurement

All financial assets are recognized initially at fair value plus, in the case of financial assets not recorded at fair value through profit or loss, transaction costs that are attributable to the acquisition of the financial asset.

Subsequent measurement

Subsequent measurement is determined with reference to the classification of the respective financial assets. Based on the business model for managing the financial assets and the contractual cash flow characteristics of the financial asset, the Company classifies financial assets as subsequently measured at amortized cost, fair value through other comprehensive income or fair value through profit and loss.

Debt instruments at amortized cost

Debt instruments such as trade and other receivables, security deposits and loans given are measured at the amortized cost if both the following conditions are met:

> The asset is held within a business model whose objective is to hold assets for collecting contractual cash flows, and

> Contractual terms of the asset give rise on specified dates to cash flows that are solely payments of principal and interest (SPPI) on the principal amount outstanding.

After initial measurement, such financial assets are subsequently measured at amortized cost using the effective interest rate (EIR) method. Amortized cost is calculated by taking into account any discount or premium on acquisition and fees or costs that are an integral part of the EIR. The EIR amortization is included in finance income in the profit or loss. The losses arising from impairment are recognized in the profit or loss.

Debt instruments at Fair value through Other Comprehensive Income (FVOCI)

A ''debt instrument'' is classified as at the FVTOCI if both of the following criteria are met:

> The objective of the business model is achieved both by collecting contractual cash flows and selling the financial assets, and

> the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest (SPPI) on the principal amount outstanding

Debt instruments included within the FVTOCI category are measured initially as well as at each reporting date at fair value. Fair value movements are recognized in the other comprehensive income (OCI).

Debt instruments at Fair value through Profit or Loss (FVTPL)

FVTPL is a residual category for debt instruments excluding investments in subsidiary companies. Any debt instrument, which does not meet the criteria for categorization as at amortized cost or as FVTOCI, is classified as at FVTPL.

After initial measurement, any fair value changes including any interest income, foreign exchange gain and

> The rights to receive cash flows from the asset have expired, or

> The Company has transferred its rights to receive cash flows from the asset or has assumed an obligation to pay the received cash flows in full without material delay to a third party under a ''pass-through'' arrangement; and either:

> The Company has transferred substantially all the risks and rewards of the asset, or

> The Company has neither transferred nor retained substantially all the risks and rewards of the asset, but has transferred control of the asset.

On de-recognition, any gains or losses on all debt instruments (other than debt instruments measured at FVTOCI) and equity instruments (measured at FVTPL) are recognized in the Statement of Profit and Loss. Gains and losses in respect of debt instruments measured at FVTOCI and that are accumulated in OCI are reclassified to profit or loss on de-recognition. Gains or losses on equity instruments measured at FVTOCI that are recognized and accumulated in OCI are not reclassified to profit or loss on de-recognition.

1.2.16.impairment of financial assets

The Company applies expected credit loss (ECL) model for measurement and recognition of impairment loss on the following financial assets and credit risk exposure:

a) Financial assets that are debt instruments, and are measured at amortized cost e.g., loans, debt securities, deposits, trade receivables and bank balance.

b) Financial assets measured at fair value through other comprehensive income.

In case of other assets (listed as a) above), the company determines if there has been a significant increase in credit risk of the financial asset since initial recognition. If the credit risk of such assets has not increased significantly, an amount equal to 12-month ECL is measured and recognized as loss allowance. However if credit risk has increased significantly, an amount equal to lifetime ECL is measured and recognized as loss allowance.

1.2.17.Financial Liabilities

initial recognition and measurement

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.

Subsequent measurement

The measurement of financial liabilities depends on their classification, as described below:

Financial Liabilities at Fair Value through Profit or Loss (FVTPL)

Financial liabilities at fair value through profit or loss include financial liabilities designated upon initial recognition as at fair value through profit or loss.

Financial liabilities designated upon initial recognition at fair value through profit or loss are designated at the initial date of recognition, and only if the

criteria in Ind-AS 109 are satisfied. For liabilities designated as FVTPL, fair value gains/ losses attributable to changes in own credit risk is recognized in OCI. These gains/ losses are not subsequently transferred to profit or loss. However, the company may transfer the cumulative gain or loss within equity. All other changes in fair value of such liability are recognized in the statement of profit or loss.

Financial Liabilities at amortized cost

Financial liabilities classified and measured at amortized cost such as loans and borrowings are initially recognized at fair value, net of transaction cost incurred. After initial recognition, financial liabilities are subsequently measured at amortized cost using the Effective interest rate (EIR) method. Gains and losses are recognized in profit or loss when the liabilities are derecognized as well as through the EIR amortization process.

Amortized cost is calculated by taking into account any discount or premium on acquisition and fees or costs that are an integral part of the EIR. The EIR amortization is included as finance costs in the statement of profit and loss.

Derecognition

A financial liability is derecognized when the obligation under the liability is discharged or cancelled or expires. When an existing financial liability is replaced by another from the same lender on substantially different terms, or the terms of an existing liability are substantially modified, such an exchange or modification is treated as the de-recognition of the original liability and the recognition of a new liability. The difference in the respective carrying amounts is recognized in the statement of profit or loss.

Offsetting of financial instruments

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

Borrowings

Borrowings are initially recognized at fair value, net of transaction costs incurred. Borrowings are subsequently measured at amortized cost. Any differences between the proceeds (net of transaction costs) and the redemption amount is recognized in Profit or loss over the period of the borrowing using the effective interest method. Fees paid on the establishment of loan facilities are recognized as transaction costs of the loan to the extent that it is probable that some or all of the facilities will be drawn down. In this case, the fee is deferred until the drawdown occurs.

The borrowings are removed from the Balance sheet when the obligation specified in the contract is discharged, cancelled or expired. The difference between the carrying amount of the financial liability that has been extinguished or transferred to another party and the consideration paid including any noncash asset transferred or liabilities assumed, is recognized in profit or loss as other gains/(losses).

Borrowings are classified as current liabilities unless the group has an unconditional right to defer settlement of the liability of at least 12 months after the reporting period. Where there is a breach of a material provision of a long-term loan arrangement on or before the end of the reporting period with the effect that the liability becomes payable on demand on the reporting date, the entity does not classify the liability as current, if the lender agreed, after the reporting period and before the approval of the Standalone Financial Statement for issue, not to demand payment as a consequence of the breach.

1.2.18.Borrowing Cost

Borrowing costs directly attributable to the construction or production of a qualifying asset are capitalized during the period of time that is required for the acquisition, construction or production of an asset that necessarily takes a substantial period of time to get ready for its intended use or sale are capitalized as part of the cost of the asset. All other borrowing costs are expensed in the period in which they occur. Borrowing costs consist of interest and other costs (including exchange differences relating to foreign currency borrowings to the extent that they are regarded as an adjustment to interest costs) that an entity incurs in connection with the borrowing of funds.

1.2.19. Taxes on Income Current and Deferred Tax

Current tax is the amount of tax payable determined in accordance with the applicable tax rates and provisions of the Income Tax Act, 1961 and other applicable tax laws.

Deferred tax is recognized on differences between the carrying amounts of assets and liabilities in the Balance sheet and the corresponding tax bases used in the computation of taxable profit and are accounted for using the liability method. Deferred tax liabilities are generally recognized for all taxable temporary differences, and deferred tax assets are generally recognized for all deductible temporary differences, carry forward tax losses and allowances to the extent that it is probable that future taxable profits will be available against which those deductible temporary differences, carry forward tax losses and allowances can be utilized. Deferred tax assets and liabilities are measured at the applicable tax rates. Deferred tax assets and deferred tax liabilities are off set, and presented as net.

Current and deferred taxes relating to items directly recognized in reserves are recognized in reserves and not in the Statement of Profit and Loss.

Unused tax credit

Minimum Alternate Tax (MAT) paid in accordance with the tax laws, which gives future economic benefits in the form of adjustment to future income tax liability, is considered as an asset if there is convincing evidence that the Company will pay normal income tax. Accordingly, MAT is recognized as a deferred tax asset in the Balance Sheet when it is probable that future economic benefit associated with it will flow to the Company.

1.2.20. Earnings per share

Basic earnings per share is computed by dividing the profit / (loss) after tax (including the post-tax effect of extraordinary items, if any) by the weighted average number of equity shares outstanding during the year. Diluted earnings per share is computed by dividing the profit / (loss) after tax (including the post-tax effect of extraordinary items, if any) as adjusted for dividend, interest and other charges to expense or income (net of any attributable taxes) relating

to the dilutive potential equity shares, by the weighted average number of equity shares considered for deriving basic earnings per share and the weighted average number of equity shares which could have been issued on the conversion of all dilutive potential equity shares.

1.2.21. Cash and Cash equivalents

For the purpose of presentation in statement of cash flows, cash and cash equivalents includes cash on hand, deposit held at call with financial institution, other short term, highly liquid investments with original maturities of 3 months or less that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value, and bank overdrafts. Bank Overdrafts are shown within borrowings in current liabilities in Balance sheet.

1.2.22. Cash Flows

Cash flows are reported using the indirect method, whereby profit / (loss) before extraordinary items and tax is adjusted for the effects of transactions of non-cash nature and any deferrals or accruals of past or future cash receipts or payments. The cash flows from operating, investing and financing activities of the Company are segregated based on the available information.

1.2.23.Segment Reporting

An operating segment is a component of the Company that engages in business activities from which it may earn revenues and incur expenses,

including revenues and expenses that relate to transactions with any of the Company''s other components, and for which discrete financial information is available. Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating decision maker.

The chief operating decision maker is responsible for allocating resources and assessing performance of the operating segments and has been identified as the Managing Director of the Company.

1.2.24. Dividend

Final dividend on shares is recorded as a liability on the date of approval by the shareholders and Interim dividends are recorded as a liability on the date of declaration by the Company''s Board of Directors.

1.2.25. Recent Pronouncements:

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

(i) Leased Assets

The lease term in respect of assets acquired under finance leases expires within 57-73 years.

(ii) Assets given as security for borrowings

All the items of property, plant and equipment of the Company have been given to lenders as security for various borrowing facilities. (Refer Note 17)

(iii) Impairment

The Company has assessed recoverable amount of its property, plant and equipment by estimating its value in use. Based on the aforementioned assessment it has been concluded that the recoverable amount is higher than the respective carrying amount except the moulded product division wherein based on assessment, the impairment loss of H420.42 lakhs was identified during the year and accordingly, the goodwill recognised of H408.80 Lakhs relating to Moulded products division was fully impaired.

(iv) Revision in useful life of certain assets

During the previous year, the Company had reassessed the useful life of certain items of property, plant and equipments under Moulded Products Division and based on the assessment, the useful life has been reduced from 25 years to 20 years in respect of Plant and Equipments and 8 years to 5 years in respect of Moulds resulting in additional charge of H102.90 lakhs in depreciation.

(v) Other Notes:

a) Property, Plant and Equipment values are carried in the Standalone financial statements on their Historic value (Cost of Acquisition).

b) Title deeds of all immovable properties of land and buildings which are freehold are in the name of the Company.

c) For capital commitments, Refer Note 47

d) The Company has not revalued any of its Property, plant and equipment and intangible assets during the year.

e) The company does not have any Benami property, where any proceeding has been initiated or pending against the company for holding any Benami property

4. Goodwill and other Intangible assets Contd Note 4(A): Impairment of Goodwill

Goodwill is tested for impairment on annual basis and whenever there is an indication that the recoverable amount of a cash generating unit is less then the recoverable amount of cash generating units is determined based on higher of value in use and fair value less cost to sell.

For the purpose of impairment testing, goodwill is allocated to a CGU representing the lowest level within the Company at which goodwill is monitored for internal management purposes, and which is not higher than the Company''s operating segment. The Company generally uses discounted cash flow method to determine the recoverable amounts. These discounted cashflows use a 5 year projection based on financial forecasts. Cash flow projections take into account past experience and represent management''s best estimate about future developments.

Based on the said assessment, Impairment loss of H420.42 lakhs was identified in the Moulded Products segment during the year. Accordingly, the goodwill recognised of H408.80 relating to Moulded products division was fully impaired.

Terms of repayment and security:

(a) Term Loans from Banks

The loans are repayable within 6 number of quarterly installments and the interest is payable at 1 Year MCLR 2.15% and 6 Month MCLR 2.25%.

The said loans are secured by

i. First pari-passu charge by given of all Immovable Properties and property, plant and equipment both present and future of the company [including equitable mortgage of land & building]

ii. Second pari passu charge on entire current assets (present and future) of the company with second charge over entire property, plant and equipment [present and future] of the company ceded to working capital bankers/ lenders (including Letters of Credit and Letters of Guarantees).

iii. Personal guarantee of Promoter Directors of the company

iv. Corporate guarantee of Yash Agro Products Limited and Satori Global Limited.

(b) Loans from Non Banking Finance Company

The loans are repayable within 20 & 15 structured quartely installments and the interest is payable at 10.50% per annum & 9.75% per annum respectively

The said loans are secured by:

i. First pari-passu charge by given of all Immovable Properties and property, plant and equipment both present and future of the company [including equitable mortgage of land & building]

ii. Second pari passu charge on entire current assets (present and future) of the company with second charge over entire property, plant and equipment [present and future] of the company ceded to working capital bankers/ lenders (including Letters of Credit and Letters of Guarantees).

iii. Personal guarantee of Promoter Directors of the company

iv . The company shall be registering the due charges against this loan as provided for and required by the statutory / regulatory authorities.

d) Terms and conditions of transactions with related parties

Transactions relating to dividend were on the same terms and conditions that applied to other shareholders. The transactions with related parties are made in the ordinary course of business. No provisions are held against receivables from related parties.Outstanding balances at the year-end are unsecured and interest free and settlement occurs in cash.

e) Other Notes

No amount has been written off/back or provision made for loss allowance during the year in respect of related parties except as disclosed above.

39. Financial Instruments (i) Capital Management

The Company''s capital management is intended to create value for shareholders by facilitating the meeting of long-term and short-term goals of the Company. The Company determines the amount of capital required on the basis of annual operating plans and long-term product and other strategic investment plans. The funding requirements are met through equity and other long-term/short-term borrowings. The Company''s policy is aimed at combination of short-term and long-term borrowings. The Company monitors the capital structure on the basis of total debt to equity ratio and maturity profile of the overall debt portfolio of the Company. Total borrowings includes all long and short-term borrowings as disclosed in notes 17 to the financial statements.

The capital structure of the company consists of debt, which includes the borrowings including temporary overdrawn balance, cash and cash equivalents including short term bank deposits, equity comprising issued capital and reserves . The gearing ratio for the year is as under:

39. Financial Instruments Contd

(iii) Financial risk management objectives:

The Company''s principal financial liabilities comprise of loan from banks and financial institutions, and trade payables. The main purpose of these financial liabilities is to raise finance for the Company''s operations. The Company has various financial assets such as trade receivables, cash and short term deposits, which arise directly from its operations.

The main risks arising from Company''s financial instruments are foreign currency risk, credit risk, market risk, interest rate risk and liquidity risk. The Board of Directors review and agree policies for managing each of these risks.

(a) Credit risk:

Credit risk is the risk of financial loss to the Company if a customer or counterparty to a financial instrument fails to meet its contractual obligations, and arises principally from the Company''s trade and other receivables, cash and cash equivalents and other bank balances. The maximum exposure to credit risk in case of all the financial instruments covered below is restricted to their respective carrying amount.

Trade and Other receivables

Customer credit is managed by each business unit subject to the Company''s established policies, procedures and control relating to customer credit risk management. Trade receivables are non-interest bearing and the agreed divisional payment terms are : (i) Paper & Pulp - Domestic Sale 20 days, Export Sale 30-90 days. (ii) Moulded - 30 days. Credit limits are established for all customers based on internal rating criteria. Outstanding customer receivables are regularly monitored.

The Company measures the expected credit loss of trade receivables based on historical trend, industry practices and the business environment in which the entity operates. Loss rates are based on actual credit loss experience and past trends.

At 31^st March, 2024, the Company''s top three customers accounted for H1082.53 lakhs of the trade and other receivables carrying amount (P.Y. : H1150.27 lakhs). Expected credit loss assessment for customers:

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

Other financial assets

The Company maintains exposure in cash and cash equivalents and term deposits with banks.

The Company held cash and cash equivalents of H5354.13 lakhs at 31^st March, 2024 (P.Y.: H77.97 lakhs). Cash and cash equivalents are held with reputable and creditworthy banks.

Individual risk limits are set for each counter-party based on financial position, credit rating and past experience. Credit limits and concentration of exposures are actively monitored by the Management of the Company.

Other than trade and other receivables, the Company has no other financial assets that are past due but not impaired.

(b) Market risk:

Market Risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk comprises three types of risk: currency risk, interest rate risk and price risk.

39. Financial Instruments Contd

Interest rate sensitivity analysis:

As at 31^st March, 2024 and 2023, financial liability of H7356.55 Lakhs and H9436.65 Lakhs, respectively, were subject to variable interest rates. Increase/ decrease of 25 basis points in interest rates at the balance sheet date would result in decrease/increase in profit/(loss) before tax of H18.39 lakhs and H23.59 lakhs for the year ended 31^st March, 2024 and 2023, respectively.

The risk estimates provided assume a parallel shift of 25 basis points interest rate. This calculation also assumes that the change occurs at the balance sheet date and has been calculated based on risk exposures outstanding as at that date. The period end balances are not necessarily representative of the average debt outstanding during the period.

This analysis assumes that all other variables, in particular foreign currency rates, remain constant.

(Note: The impact is indicated on the profit/(loss) before tax basis).

(III) Liquidity risk :

The Company follows a conservative policy of ensuring sufficient liquidity at all times through a strategy of profitable growth, efficient liquidity at all times through a strategy of profitable growth, efficient working capital management as well as prudent capital expenditure. The Company has a cash credit facility with banks to support any temporary funding requirements.

The Company believes that current cash and cash equivalents, tied up borrowing lines and cash flow that is generated from operations is sufficient to meet requirements. Accordingly, liquidity risk is perceived to be low.

Liquidity table:

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

The following table shows the maturity analysis of the Company''s financial liabilities based on contractually agreed undiscounted cash flows along with its carrying value as at the Balance Sheet date.

43. Disclosure in termsofInd AS102ontheShare-based PaymentArrangement Contd

and Sweat Equity) Regulations, 2021 (''SBEB Regulations'').The Plan covers eligible employees (except promoters or those belonging to the promoters'' group, independent directors and directors who either by himself or through his relatives or through any body-corporate, directly or indirectly holds more than 10%of the outstanding Shares of the Company). Under the Scheme, the Nomination and Remuneration Committee of directors of the Company, administers the Scheme and grants stock options to eligible directors or employees of the Company.The Committee determines the employees eligible for receiving the options and the number of options to be granted subject to overall limit of 20,00,000 (Twenty Lakhs Only) equity shares of the Company.

(i) Tranch-I : Pursuant to above, during FY 2022-23, the Company has granted 14,16,600 options at an exercise price of INR 82.21 per option, to the employees of the Company. Under the terms of the plan, these options are vested on a graded vesting basis over a maximum period of 1 year from the date of grant and are to be exercised either in part(s) or full, within a maximum period of 3.5 years from the date of last vesting. During the year the Company has allotted 10,89,600 equity shares at H82.21 per equity share upon exercise of share options vested in terms of TSOP -2021 plan. The remaining options would have to be exercised by the concerned eligible team of the Company, before the end date i.e., 31^st December, 2026 from the date of respective vesting.

(ii) Tranch-II : Pursuant to above, during FY 2023-24, the Company has granted 1,25,400 options at an exercise price of INR 118.13 per option, to the employees of the Company. Under the terms of the plan, these options are vested on a graded vesting basis over a maximum period of 1 year from the date of grant and are to be exercised either in part(s) or full, within a maximum period of 2.5 years from the date of last vesting.The said options would have to be exercised by the concerned eligible team of the Company, before the end date i.e., 31^st December, 2026 from the date of respective vesting.

50. Other disclosures as per amended Schedule III-

(i) The Company do not have any transactions with Companies stuck off.

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

(iii) The Company has not been declared wilful defaulter by any bank or financial institution or other lender.

(iv) The company has no such transaction which is not recorded in the books of accounts that has been surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961 (such as, search or survey or any other relevant provisions of the Income Tax Act, 1961.

(v) There is no Scheme of Arrangements approved by the Competent Authority in terms of sections 230 to 237of the Companies Act, 2013

(vi) The Company does not have any charges or satisfaction which is yet to be registered with Registrar of Companies beyond the statutory period.

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

(a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the company (Ultimate Beneficiaries) or

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

50. Other disclosures as per amended Schedule III- Contd

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

(a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party (Ultimate Beneficiaries) or

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

(ix) The Company has complied with the requirements of clause 87 of section 2 of the Companies Act 2013 read with Compliance (Restriction on number of layers) Rules, 2017.

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

For C N K & Associates LLP Jagdeep Hira Gautam Ghosh

Chartered Accountants Managing Director Executive Director

Firm Registration No.: 101961W/W-100036 DIN: 07639849 DIN: 10371300

Place: Ayodhya Place: Ayodhya

Date: 30.05.2024 Date: 30.05.2024

Himanshu Kishnadwala Neetika Suryawanshi Sachin Kumar Srivastava

Partner Chief Financial Officer Company Secretary

Membership No.: 037391

Place: Mumbai Place: Ayodhya Place: Ayodhya

Date: 30.05.2024 Date: 30.05.2024 Date: 30.05.2024

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Mar 31, 2023

(i) Leased Assets

The lease term in respect of assets acquired under finance leases expires within 59-72 years.

(ii) Assets given as security for borrowings

All the items of property, plant and equipment of the Company have been given to lenders as security for various borrowing facilities. (Refer Note 17)

(iii) Impairment

The Company has assessed recoverable amount of its property, plant and equipment by estimating its value in use. Based on the aforementioned assessment it has been concluded that the recoverable amount is higher than the respective carrying amount.

(iv) Revision in useful life of certain assets

During the year, the Company has reassessed the useful life of certain items of property plant and equipments under Moulded Products Division and based on the assessment, the useful life has been reduced from 25 years to 20 years with a resultant change in depreciation.

(v) Other Notes:

a) Property, Plant and Equipment values are carried in the financial statements on their Historic value (Cost of Acquisition).

b) No revaluation has been carried out as per Rule 2 of the Companies Act, 2013.

c) For capital commitments, Refer Note 48

d) The Company has not revalued any of its Property, plant and equipment and intangible assets during the year.

e) Title deeds of all immovable properties of land and buildings which are freehold are in the name of the Company.

Note 4(a): The Company tests goodwill on an annual basis and whenever there is an indication that the Cash Generating Unit (CGU) to which the goodwill has been allocated may be impaired. The goodwill impairment test is performed at the level of the CGU or group of CGUs that benefit from the synergies of the acquisition and which represents the lowest level at which goodwill is monitored for internal management purposes. The recoverable amount is determined based on higher of value-in-use and fair value less cost of disposal.

In determining the value-in-use, cash flow projections approved by appropriate level of management are considered. In circumstances where a reliable value-in-use estimate is difficult to make whereas market value of the asset or the CGU or group of CGUs is readily available, the latter is used for the determination of recoverable amount with appropriate adjustments, where applicable.

Apart from the observable market information, significant management estimates and judgments are used to determine the recoverable amounts based on value-in-use. Key assumptions on which management has based its determination of recoverable amount includes estimated growth rates (including terminal growth rates), margins and discount rates. Also, a fair assessment can be done from the present standing of the company and new strategic partnership opportunities that the brand has been able to benefit from.

(ii) Terms and 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 company declares and pays dividend in Indian Rupees

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.

16.2 Nature and Purpose of Reserves

Capital Reserve: Capital reserve includes the amount retained towards the forfeiture of equity and preferential warrants. This reserve will be utilized in accordance with the provisions of the Act.

Securities Premium: Securities premium reserve is on account of premium on issue of shares. This reserve will be utilized in accordance with the provisions of the Act.

Employees Share Base payment Reserve : Represents fair value of the options granted which is to be expensed out over the life of the vesting period as employee compensation costs reflecting period of receipt of service.

General Reserve: It has been created out of profits of earlier years.

Retained Earnings: Retained earnings are the profits that the Company has earned till date, less any transfers to general reserve, dividends or other distributions paid to shareholders.

Other Comprehensive Income: This includes actuarial gains/ (losses) on employee benefit obligations.

e) Interest rates: Loans availed from banks carry interest rate ranging from 6.00% to 12.00%.

Refer note 39 (b) (II) & (III) on Interest rate risk and Liquidity Risk respectively.

f) Security details:-

Term Loans from Banks are secured by

i. First pari-passu charge by hypothecation of all Immovable Properties and property, plant and equipment both present and future of the company. [including equitable mortgage of land property & building]

ii. Second pari passu charge on entire current assets (present and future) of the company with 2nd charge over entire property, plant and equipment [present and future] of the company ceded to working capital bankers/ lenders (including Letters of Credit and Letters of Guarantees).

iii. Personal guarantee of Promoter Directors of the company

iv. Corporate guarantee of Yash Agro Products Limited and Satori Global Limited.

v. 84.99% pledge of promoter''s shareholding in the Company in favour of the lenders

g) Term Loan and working capital loans availed from Banks has been utilised for the purpose they have been received.

Under the Mirco, Small and Medium Enterprises Development Act, 2006 ("MSMED Act”), which came into force from 2 October, 2006, certain disclosures are required to be made relating to Mirco, Small and Medium Enterprises. On the basisof the information and records available with the Company''s management, dues to Mirco, Small and Medium Enterprises have been determined to the extent such parties have been identified on the basis of information collected till the reporting date and has been relied upon by the Statutory Auditors. The disclosures as required by Section 22 of the MSMED Act, are given above.

37. Employee Benefit Disclosures I. Defined Contribution plan

The Company makes contributions towards provident fund to defined contribution retirement plan for the qualifying employee. The Provident fund contributions are made to Government administered employees'' provident fund. Both the employees and the Company make monthly contributions to the provident fund plan equal to a specified percentage of the covered employees salary.

II. Defined benefit plans

The company operates funded gratuity plan for qualifying employees. Under the plan, the employees are entitled to retirement benefits depending upon the number of years of service rendered by them subject to minimum specified number of years of service.

No other post retirement benefits are provided to these employees.

The actuarial valuation of plan assets and the present value of defined benefit obligation were carried out at 31st March, 2023 by the certified actuarial valuer.

The present value of the defined benefit obligation, related current service cost and past service cost were measured using the projected unit credit method.

ii) rates considered are as per the published rates in the India Assured Lives Mortality 2012-14 (Previous year: India Assured Lives Mortality (2006-08) (Modified) ULT. ) mortality table.

iii) Leave policy: Leave balance as at the valuation date and each subsequent year following the valuation date to the extent not availed by the employee accumulated up to 31st December 2022 is available for encashment on separation from the Company up to a maximum of 30 days.

iv) The discount rate should be based upon the market yields available on Government bonds at the accounting date with a term that matches that of the liabilities.

v) The contribution to be made by the Company for funding its liabilities for gratuity during the financial year 2022-23 amounts to H98.93 lakhs (PY H24.49 Lakhs).

vi) The expected rate of return on plan assets is based on market expectation, at the beginning of the year, for returns over entire life of the related obligation.

vii) The assumption of future salary increases, considered in actuarial valuation, takes account of inflation, seniority, promotion, supply and demand and other relevant factors.

viii) Liability on account of long term absences has been actuarially valued as per Projected Unit Credit Method.

ix) Short term compensated absences have been provided on actual basis.

39. Financial Instruments (i) Capital Management

The Company''s capital management is intended to create value for shareholders by facilitating the meeting of long-term and short-term goals of the Company.

The Company determines the amount of capital required on the basis of annual operating plans and long-term product and other strategic investment plans. The funding requirements are met through equity and other long-term/short-term borrowings. The Company''s policy is aimed at combination of short-term and long-term borrowings.

The Company monitors the capital structure on the basis of total debt to equity ratio and maturity profile of the overall debt portfolio of the Company.

Total borrowings includes all long and short-term borrowings as disclosed in notes 17 to the financial statements.

(ii) Categories of financial instruments

Calculation of Fair Values

The fair values of the financial assets and liabilities are defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction

between market participants at the measurement date. The following methods and assumptions were used to estimate the fair values of financial instruments:

a) The fair values of investment in quoted investment in equity shares is based on the current bid price of respective investment as at the reporting date.

b) The fair value of the long-term borrowings carrying floating-rate of interest is not impacted due to interest rate changes and will not be significantly different from their carrying amounts as there is no significant change in the underlying credit risk of the Company (since the date of inception of the loans)

c) The fair value of loans from banks and other financial indebtedness as well as other non current financial liabilities is estimated by discounting future cash flows using rates currently available for debt or similar terms and remaining maturities.

d) Cash and cash equivalents, trade receivables, other financial assets, trade payables and other financial liabilities have fair values that approximate to their carrying amounts due to their short-term nature.

Fair value measurements recognized in the balance sheet:

The following table provides an analysis of financial instruments that are measured subsequent to initial recognition at fair value, grouped into Levels 1 to 3 based on the degree to which the fair value is observable.

-Level 1 fair value measurements are those derived from quoted prices (unadjusted) in active markets for identical assets or liabilities.

-Level 2 fair value measurements are those derived from inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices).

-Level 3 fair value measurements are those derived from valuation techniques that include inputs for the asset or liability that are not based on observable market data (unobservable inputs).

(iii) Financial risk management objectives:

The Company''s principal financial liabilities comprise of loan from banks and financial institutions, and trade payables. The main purpose of these financial liabilities is to raise finance for the Company''s operations. The Company has various financial assets such as trade receivables, cash and short term deposits, which arise directly from its operations.

The main risks arising from Company''s financial instruments are foreign currency risk, credit risk, market risk, interest rate risk and liquidity risk. The Board of Directors review and agree policies for managing each of these risks.

(a) Credit risk:

Credit risk is the risk of financial loss to the Company if a customer or counterparty to a financial instrument fails to meet its contractual obligations, and arises principally from the Company''s trade and other receivables, cash and cash equivalents and other bank balances. The maximum exposure to credit risk in case of all the financial instruments covered below is restricted to their respective carrying amount.

Trade and Other receivables

Customer credit is managed by each business unit subject to the Company''s established policies, procedures and control relating to customer credit risk management. Trade receivables are non-interest bearing and are generally on 21 - 30 days credit term. Credit limits are established for all customers based on internal rating criteria. Outstanding customer receivables are regularly monitored.

The Company measures the expected credit loss of trade receivables based on historical trend, industry practices and the business environment in which the entity operates. Loss rates are based on actual credit loss experience and past trends.

At 31st March, 2023, the Company''s top three customers accounted for H1150.27 lakhs of the trade and other receivables carrying amount (P.Y. : H610.08 lakhs).

Other financial assets

The Company maintains exposure in cash and cash equivalents and term deposits with banks.

The Company held cash and cash equivalents of H77.97 lakhs at 31st March, 2023 (P.Y.: H360.38 lakhs). Cash and cash equivalents are held with reputable and creditworthy banks.

Individual risk limits are set for each counter party based on financial position, credit rating and past experience. Credit limits and concentration of exposures are actively monitored by the Management of the Company.

Other than trade and other receivables, the Company has no other financial assets that are past due but not impaired.

(b) Market risk:

Market Risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk comprises three types of risk: currency risk, interest rate risk and price risk.

(I) Foreign currency risk

The Company is exposed to currency risk on account of its operating and financing activities. The functional currency of the Company is Indian Rupee. Company''s exposure is mainly denominated in U.S. dollars (USD). The USD exchange rate has changed substantially in recent periods and may continue to fluctuate substantially in the future.

The Company does not use derivative financial instruments for trading or speculative purposes.

(II) Interest rate risk:

Interest rate risk is measured by using the cash flow sensitivity for changes in variable interest rates. Any movement in the reference rates could have an impact on the Company''s cash flows as well as costs.

Interest rate sensitivity analysis:

As at 31st March, 2023 and 2022, financial liability of H10,319.87 Lakhs and H9,967.15 Lakhs, respectively, were subject to variable interest rates. Increase/decrease of 25 basis points in interest rates at the balance sheet date would result in decrease/increase in profit/(loss) before tax of H25.80 lakhs and H24.91 lakhs for the year ended 31st March, 2023 and 2022, respectively.

The risk estimates provided assume a parallel shift of 25 basis points interest rate. This calculation also assumes that the change occurs at the balance sheet date and has been calculated based on risk exposures outstanding as at that date. The period end balances are not necessarily representative of the average debt outstanding during the period.

This analysis assumes that all other variables, in particular foreign currency rates, remain constant.

(Note: The impact is indicated on the profit/Ooss) before tax basis).

(III) Liquidity risk:

The Company follows a conservative policy of ensuring sufficient liquidity at all times through a strategy of profitable growth, efficient liquidity at all times through a strategy of profitable growth, efficient working capital management as well as prudent capital expenditure. The Company has a cash credit facility with banks to support any temporary funding requirements.

(IV) Other price risk:

The Company is not exposed to any significant equity price risks arising from equity investments, as on 31st March 2023. Equity investments are held for strategic rather than trading purposes. The Company does not actively trade these investments.

Equity price sensitivity analysis:

There is minimum exposure to equity price risks as at the reporting date or as at the previous reporting date.

43. Business Combination - Merger Merger of Yash Compostables Limited

Hon. National Company Law Tribunal has approved the Scheme of Merger of Yash Compostables Limited ("YCL”) with the Company vide its order dated 18th April 2022. As per the scheme the effective date of Merger was 1st April 2020. Accordingly, the financial performance of YCL for the financial year 2021-22 has been incorporated in the these financial statements and the financial performance for financial year 2020-21 has been incorporated in retained earnings. The difference between fair value of assets and liabilities as on 1st April 2020 and after taking into account 28,38,500 equity shares of H10 Each to be allotted to the erstwhile shareholders of YCL as per the scheme is recognised as Goodwill of H408.80 lakhs which is accounted in the Standalone Financial Statements.

44. Disclosure in terms of Ind AS 102 on the Share-based Payment Arrangement A. Description of share-based payement arrangement Share Option Programme (Equity Settled)

The members of the Company had approved the YASH TEAM STOCK OPTION PLAN - 2021'' (''TSOP''/ ''Plan'') at the extra ordinary general meeting held on 6th May 2022. The plan envisaged grant of share options to eligible employees at market price as defined in Securities and Exchange Board of India (Share Based Employee Benefits and Sweat Equity) Regulations, 2021 (''SBEB Regulations'').The Plan covers eligible employees (except promoters or those belonging to the promoters'' group, independent directors and directors who either by himself or through his relatives or through any body-corporate, directly or indirectly holds more than 10%of the outstanding Shares of the Company). Under the Scheme, the Nomination and Remuneration Committee of directors of the Company, administers the Scheme and grants stock options to eligible directors or employees of the Company.The Committee determines the employees eligible for receiving the options and the number of options to be granted subject to overall limit of 20,00,000 (Twenty Lakhs Only) equity shares of the Company.

Pursuant to this, during FY 2022-23, the Company has granted 14,16,000 options at an exercise price of INR 82.21 per option, to the employees of the Company. Under the terms of the plan, these options are vested on a graded vesting basis over a maximum period of 1 year from the date of grant and are to be exercised either in part(s) or full, within a maximum period of 3.5 years from the date of last vesting.

51. Other disclosures as per amended Schedule III-

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

(ii) The Company do not have any transactions with Companies stuck off.

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

(iv) The Company has not been declared wilful defaulter by any bank or financial institution or other lender.

(v) The company has no such transaction which is not recorded in the books of accounts that has been surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961 (such as, search or survey or any other relevant provisions of the Income Tax Act, 1961.

(vi) There is no Scheme of Arrangements approved by the Competent Authority in terms of sections 230 to 237of the Companies Act, 2013

(vii) The company does not have any charges or satisfaction which is yet to be registered with ROC beyond the statutory period

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

(a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the company (Ultimate Beneficiaries) or

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

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

(a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party (Ultimate Beneficiaries) or (b) provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries

(x) The Company has complied with the requirements of clause 87 of section 2 of the Companies Act 2013 read with Compliance (Restriction on number of layers) Rules, 2017.

52. Figures for the previous period are re-arranged/ re-grouped, wherever necessary, to correspond with the current period''s classification and disclosures.

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Mar 31, 2018

Corporate Information

Yash Papers Limited (“YPL” or “the Company”) was founded in 1981. The Company is listed on Bombay Stock Exchange Limited. The Company is mainly engaged in the business of manufacture of Paper and Paper Products.The company has started a new unit for manufacture of Tableware products wef 2ndJanuary, 2018. The principal place of business of the Company is in Faizabad, Uttar Pradesh, India.

1. Basis of Preparation:

The Financial Statements of the Company have been prepared in accordance with Indian Accounting Standards (hereinafter referred to as “Ind-AS”) notified under Section 133 of the Companies Act, 2013 (“Act”) read with Companies (Indian Accounting Standards) Rules, 2015; and the other relevant provisions of the Act.

These financial statements for the year ended 31st March, 2018 are the first financials with comparatives, prepared under Ind-AS. For all previous periods including the year ended 31st March, 2017, the Company had prepared its financial statements in accordance with the Accounting Standards notified under section 133 of the Companies Act, 2013 read with Rule 7 of Companies (Accounting Standards) Rules,2014 (as amended) and other relevant provisions of the Act (hereinafter referred to as ‘Previous GAAP’) used for its statutory reporting requirement in India. Refer note 35 for an explanation of how the transition from previous GAAP to Ind-AS has affected the

Financial Position, Financial Performance and Cash Flows of the Company.

The company’s presentation and functional currency is Indian rupees. All amounts in these financial statements, except per share amounts and unless as stated otherwise, have been rounded off to two decimal places and have been presented in lakhs. Authorization of Financial Statements:

The Financial Statements were authorized for issue in accordance with a resolution of the Board of Directors in its meeting held on 19th, May, 2018.

Historical cost convention

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

- Certain financial assets and liabilities are measured at fair value.

- Defined benefit plans where plan assets measured at fair value.

2. Use of Judgment and Estimates:

The preparation of the financial statements in conformity with Ind AS requires the Management to make estimates and assumptions considered in the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the accounts and reported amounts of income and expenses during the year. The management believes that the estimates used in the preparation of financial statements are prudent and reasonable. The said estimates are based on the facts and events, that existed as at the reporting date, or that occurred after that date but provide additional evidence about conditions existing as at the reporting date.

Actual results could differ from those estimates. The most significant techniques for estimation are described in the accounting policies below. Critical accounting judgments and the key sources of estimation or uncertainty in applying the Company’s accounting policies arise in relation to property, plant and equipment, impairment of assets, current asset provisions, deferred tax, retirement benefits and provisions.

Information about significant areas of estimates and judgments in applying accounting policies that have the most significant effect on the amounts recognised in the financial statements are as below:

- Impairment of Financial Assets- Refer note 8

- Estimates of useful lives and residual value of Property, Plant and Equipment and Intangible assets -Refer note 2 and note 3;

- Valuation of Inventories-Refer note 7;

- Measurement of Defined Benefit Obligations and actuarial assumptions-Refer note 21;

- Contingencies- refer note 38.

Revisions to accounting estimates are recognised prospectively in the Statement of Profit and Loss in the period in which the estimates are revised and in any future periods affected.

Current versus non-current classification

The company presents assets and liabilities in the balance sheet based on current/ non-current classification.

All the assets and liabilities have been classified as current/non-current as per the Company’s normal operating cycle and other criteria set out in Division II to Schedule III of the Companies Act, 2013.

The operating cycle is the time between the acquisition of assets for processing and their realisation in cash or cash equivalents. Based on the nature of activities of the Company and the normal time between acquisition of assets and their realization in cash or cash equivalents, the Company has determined its operating cycle as 12 months for the purpose of classification of its assets and liabilities as current and non-current.

3. Recent accounting pronouncements:

On 28th March 2018, The Ministry of Corporate affairs notified Ind AS 115 “Revenue From contracts with customers as a part of companies (India accounting standards) Amendment Rules, 2018. The core principle of the new standard is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. Further the new standard requires enhanced disclosures about the nature, amount, timing and uncertainty of revenue and cash flows arising from the entity’s contracts with customers. The effective date for adoption of Ind AS 115 is financial periods beginning on or after April 01, 2018. The effect on adoption of Ind AS 115 needs to be assessed.

Refer Note 32 (iii)(a) & (b) for information about credit risk and market risk of trade receivables.

(ii) Terms and rights attached to equity shares

The company has only one class of equity shares having a par value of Rs. 10 per share. Each holder of equity shares is entitled to one vote per share. The company declares and pays dividends in Indian Rupees.

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.

For the period of five years immediately preceding the date as at which the Balance Sheet is prepared

(a) no shares have been allotted as fully paid up pursuant to contract(s) without payment being received in cash.

(b) no bonus shares have been allotted

(c) no shares have been bought back

Refer Statement of changes in Equity for the movement in other equity.

Capital Reserve

Capital reserve contains the amount retained towards the forfeiture of equity and preferential warrants. This reserve is utilized in accordance with the provisions of the Act. Securities Premium

Securities premium reserve is used to record the premium on issue of shares. This reserve is utilized in accordance with the provisions of the Act.

General Reserve

The Company has transferred a portion of the net profit of the Company before declaring dividend to general reserve pursuant to the earlier provisions of Companies Act 1956. Mandatory transfer to general reserve is not required under the Companies Act 2013.

Retained Earnings

Retained earnings are the profits that the Company has earned till date, less any transfers to general reserve, dividends or other distributions paid to shareholders.

Other Comprehensive Income

These are actuarial gains/ (losses) on employee benefit obligations.

Money received against Share Warrants

Represents money received against share warrants from promoters and subsequently adjusted against shares issued and securities premium.

Repayment terms:

a) Secured rupee term loans from banks: Structured Quarterly Installments

b) Secured foreign currency working capital loans (FCNRB-DL) from banks: One Year from the date of disbursement

c) PICUP Loan details: One Bullet repayment at the end of tenure of loan

d) Loan from related parties: Repayable after bank secured term loan is repaid

e) The classification of loans between current liabilities and non -current liabilities continues based on repayment schedule under respective agreements as no loans have been recalled due to non compliance of conditions under any of the loan agreements.

f) Interest rates: Loans availed from banks carry interest rate ranging from 10.55% to 17.00% (March 31, 2017 11.50% to 17.00% and April 1, 2016 11.50% to 14.50%) for term loans and for working capital loans it ranges from 10.70% to 14.05% (March 31, 2017 11.75% to 14.05% and April 1, 2016 13.70% to 14.25%)

g) Scheduled repayments: Contractual repayments in case of loans from banks:

h) Security details:

Term Loans from Banks are secured by

i. First pari-passu charge by hypothecation of all Immovable Properties and fixed assets both present and future of the borrower/ company. [including equitable mortgage of landed property & building]

ii. Second pari passu charge on entire current assets (present and future) of the Borrower/ company with 2nd charge over entire fixed assets[ present and future] of the company ceded to working capital bankers/ lenders (including LC/LG).

iii. Personal guarantee of Promoter Directors of the company.

iv. Corporate guarantee of Yash Agro Products Limited & Satori Global Limited

v. 100% pledge of promoter’s shareholding in the Company in favor of the lenders.

*Under EPCG scheme, the Company is committed to export prescribed times of the duty saved on import of capital goods over a specified period of time. In case such commitments are not met, the Company would be required to pay the duty saved along with interest to the regulatory authorities.

The deferred grant income is recognized in Statement of Profit and Loss on a systematic basis over the periods in which the related performance obligations are fulfilled.

I. Details of retirement plans:

The employees of the Company are members of a state - managed retirement benefit plans namely gratuity fund operated by the Government of India. The Company is required to contribute a specified percentage of payroll costs to the retirement benefit scheme to fund the benefits.

“ The only obligation of the company with respect to the retirement benefit plan is to make the specified contributions.” The Company has recognized the following amounts in the Income Statement during the year under ‘Contribution to staff provident and other funds’ (refer note 25)

II. Defined benefit plans

The company operates funded gratuity plan for qualifying employees. Under the plan, the employees are entitled to retirement benefits depending upon the number of years of service rendered by them subject to minimum specified number of years of service.

No other post retirement benefits are provided to these employees.

The actuarial valuation of plan assets and the present value of defined benefit obligation were carried out at March 31, 2018 by the certified actuarial valuer.

The present value of the defined benefit obligation, related current service cost and past service cost were measured using the projected unit credit method.

Risk Exposure - Asset Volatility

The plan liabilities are calculated using a discount rate set with reference to bond yields; if plan assets underperform this yield, this will create a deficit. Most of the plan asset investments is in fixed income securities with high grades and in government securities.

These are subject to interest rate risk and the fund manages interest rate risk derivatives to minimize risk to an acceptable level. A portion of the funds are invested in equity securities and in alternative investments % which have low correlation with equity securities.

The equity securities are expected to earn a return in excess of the discount rate and contribute to the plan deficit.

(H) Actuarial assumptions

Actuarial valuation as at the year-end was done in respect of the aforesaid defined benefit plans based on the following assumptions:

i) General assumptions

ii) Mortality rates considered are as per the published rates in the India Assured Lives Mortality (2006-08) (Modified) ULT. (Previous year: Life Insurance Corporation of India (2006-08) ) mortality table.

iii) Leave policy: Leave balance as at the valuation date and each subsequent year following the valuation date to the extent not availed by the employee accumulated up to 31st December 2017 is available for encashment on separation from the Company up to a maximum of 30 days.

iv) The discount rate should be based upon the market yields available on Government bonds at the accounting date with a term that matches that of the liabilities.

v) The contribution to be made by the Company for funding its liabilities for gratuity ( funded and non funded) during the financial year 2018-19 amounts to Rs.40.70 Lac.

vi) The expected rate of return on plan assets is based on market expectation, at the beginning of the year, for returns over entire life of the related obligation.

vii) The assumption of future salary increases, considered in actuarial valuation, takes account of inflation, seniority, promotion, supply and demand and other relevant factors.

viii) Liability on account of long term absences has been actuarially valued as per Projected Unit Credit Method.

ix) Short term compensated absences have been provided on actual basis.

Revenue from operations for periods upto 30th June, 2017 includes excise duty, which is discontinued with effect from 1st July, 2017 upon implementation of Goods and Service Tax (GST) in India. In accordance with ‘Ind AS 18 - Revenue Recognition’ GST is not included in revenue from operations. In view of the aforesaid restructuring of indirect taxes, revenue from operations for the quarter and year ended 31st March, 2018 is not comparable with the previous periods. Current year Rs. 227.75 Lakhs (previous year Rs. 935.95 Lakhs)

3. Financial Instruments

(i) Capital Management

“The Company’s capital management is intended to create value for shareholders by facilitating the meeting of long-term and short-term goals of the Company. The Company determines the amount of capital required on the basis of annual operating plans and long-term product and other strategic investment plans. The funding requirements are met through equity and other long-term/short-term borrowings. The Company’s policy is aimed at combination of short-term and long-term borrowings.

The Company monitors the capital structure on the basis of total debt to equity ratio and maturity profile of the overall debt portfolio of the Company. Total borrowings includes all long and short-term borrowings as disclosed in notes 15 to the financial statements”

The capital structure of the company consists of debt, which includes the borrowings including temporary overdrawn balance , cash and cash equivalents including short term bank deposits, equity comprising issued capital, reserves and non-controlling interests. The gearing ratio for the year is as under:

(ii) Categories of financial instruments Calculation of Fair Values

The fair values of the financial assets and liabilities are defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The following methods and assumptions were used to estimate the fair values of financial instruments:

a) The fair values of investment in quoted investment in equity shares is based on the current bid price of respective investment as at the Balance Sheet date.

b) The fair value of the long-term borrowings carrying floating-rate of interest is not impacted due to interest rate changes and will not be significantly different from their carrying amounts as there is no significant change in the under-lying credit risk of the Company (since the date of inception of the loans).

c) The fair value of loans from banks and other financial indebtedness as well as other non current financial liabilities is estimated by discounting future cash flows using rates currently available for debt or similar terms and remaining maturities.

d) Derivative instruments have been fair valued on the reporting date on the basis of quotes provided by the third party qualified valuer / market participants.

e) Cash and cash equivalents, trade receivables, other financial assets, trade payables, and other financial liabilities have fair values that approximate to their carrying amounts due to their short-term nature.

Fair value measurements recognized in the balance sheet:

The following table provides an analysis of financial instruments that are measured subsequent to initial recognition at fair value, grouped into Levels 1 to 3 based on the degree to which the fair value is observable.

- Level 1 fair value measurements are those derived from quoted prices (unadjusted) in active markets for identical assets or liabilities.

- Level 2 fair value measurements are those derived from inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices).

- Level 3 fair value measurements are those derived from valuation techniques that include inputs for the asset or liability that are not based on observable market data (unobservable inputs).

(iii) Financial risk management objectives:

The Company’s principal financial liabilities comprise of loan from banks and financial institutions, and trade payables. The main purpose of these financial liabilities is to raise finance for the Company’s operations. The Company has various financial assets such as trade receivables, cash and short term deposits, which arise directly from its operations.

The main risks arising from Company’s financial instruments are foreign currency risk, credit risk, market risk, interest rate risk and liquidity risk. The Board of Directors review and agree policies for managing each of these risks.

(a) Credit risk:

Credit risk is the risk of financial loss to the Company if a customer or counterparty to a financial instrument fails to meet its contractual obligations, and arises principally from the Company’s trade and other receivables, cash and cash equivalents and other bank balances. The maximum exposure to credit risk in case of all the financial instruments covered below is restricted to their respective carrying amount.

Trade and Other receivables

Customer credit is managed by each business unit subject to the Company’s established policies, procedures and control relating to customer credit risk management. Trade receivables are non-interest bearing and are generally on 20 days credit term. Credit limits are established for all customers based on internal rating criteria. Outstanding customer receivables are regularly monitored.

The Company measures the expected credit loss of trade receivables based on historical trend, industry practices and the business environment in which the entity operates. Loss rates are based on actual credit loss experience and past trends.

At March 31, 2018, the Company’s top three customers accounted for Rs.5070.52 lakhs of the trade and other receivables carrying amount (March 31, 2017 : Rs.6228.08 lakhs, April 1,2016 : Rs.6249.04 lakhs).

Other financial assets

The Company maintains exposure in cash and cash equivalents, term deposits with banks and derivative contracts.

The Company held cash and cash equivalents of Rs.19.74 lakhs at March 31, 2018 (March 31, 2017: Rs.650.52 Lakhs, April 1, 2016 : Rs. 270.99 Lakhs). Cash and cash equivalents are held with reputable and credit-worthy banks.

Individual risk limits are set for each counter party based on financial position, credit rating and past experience. Credit limits and concentration of exposures are actively monitored by the Management of the Company.

Other than trade and other receivables, the Company has no other financial assets that are past due but not impaired

(b) Market risk:

Market Risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk comprises three types of risk: currency risk, interest rate risk and price risk.

(I) Foreign currency risk

The Company is exposed to currency risk on account of its operating and financing activities. The functional currency of the Company is Indian Rupee. Company’s exposure is mainly denominated in U.S. dollars (USD). The USD exchange rate has changed substantially in recent periods and may continue to fluctuate substantially in the future. The Company has put in place a Financial Risk Management Policy to Identify the most effective and efficient ways of managing the currency risks. The Company do not use derivative financial instruments for trading or speculative purposes.

The following table details the Company’s sensitivity to a 5% increase and decrease in the functional currency against the relevant foreign currencies of all the companies in the Company. 5% is the sensitivity rate used when reporting foreign currency risk internally to key management personnel and represents management’s assessment of the reasonably possible change in foreign exchange rates. The sensitivity analysis includes only outstanding foreign currency denominated monetary items and adjusts their translation at the period end for a 5% change in foreign currency rates. A positive number below indicates an increase in profit and other equity where the respective functional currency strengthens by 5% against the relevant foreign currency. For a 5% weakening of the functional currency against the relevant currency, there would be an equal and opposite impact on the profit and other equity, and the balances below would be negative.

(II) Interest rate risk:

Interest rate risk is measured by using the cash flow sensitivity for changes in variable interest rates. Any movement in the reference rates could have an impact on the Company’s cash flows as well as costs. The Company also uses a mix of interest rate sensitive financial instruments to manage the liquidity and fund requirements for its day to day operations like short-term loans.

Interest rate sensitivity analysis:

As at March 31, 2018 and 2017, financial liability of Rs. 13785.03 Lakhs and Rs. 13371.53 Lakhs, respectively, was subject to variable interest rates. Increase/decrease of 100 basis points in interest rates at the balance sheet date would result in decrease/increase in profit/(loss) before tax of Rs. 137.85 Lakhs and Rs. 133.72 Lakhs for the year ended March 31, 2018 and 2017, respectively.

The risk estimates provided assume a parallel shift of 100 basis points interest rate. This calculation also assumes that the change occurs at the balance sheet date and has been calculated based on risk exposures outstanding as at that date. The period end balances are not necessarily representative of the average debt outstanding during the period.

This analysis assumes that all other variables, in particular foreign currency rates, remain constant.

(Note: The impact is indicated on the profit/(loss) before tax basis).

(III) Liquidity risk:

The Company follows a Conservative policy of ensuring sufficient liquidity at all times through a strategy of profitable growth, efficient liquidity at all times through a strategy of profitable growth, efficient working capital management as well as prudent capital expenditure. The Company has a overdraft facility with banks to support any temporary funding requirements.

The Company believes that current cash and cash equivalents, tied up borrowing lines and cash flow that is generated from operations is sufficient to meet requirements. Accordingly, liquidity risk is perceived to be low.

Liquidity table:

The following tables detail the Company’s remaining contractual maturity for its financial liabilities. The tables have been drawn up based on the cash flows of financial liabilities based on the earliest date on which the Company can be required to pay:

(IV) Other price risk:

The Company is not exposed to any significant equity price risks arising from equity investments, as on 31st March 2018. Equity investments are held for strategic rather than trading purposes. The Company does not actively trade these investments.

Equity price sensitivity analysis:

There is no exposure to equity price risks as at the reporting date or as at the previous reporting date.

4. Related party relationships, transactions and balances:

a) Name of Related Parties and nature of relationship

I. Key Managerial Personnel and relatives

(a) Mr. Ved Krishna Managing Director (Promoter)

(b) Mrs. Manjula Jhunjhunwala Director (Promoter)

(c) Mrs. Kimberly Ann McArthur Director (Promoters’ Group)

(d) Mr. Jagdeep Hira Joint Managing Director & Chief Executive Officer

(e) Mr. Narendra Kumar Agrawal Director Works

(f) Mr. Anil Kumar Gupta Chief Financial Officer

(g) Mr. Sachin Kumar Srivastava Company Secretary

(h) Ved Krishna HUF

(i) Krishan Kumar Jhunjhunwala HUF

II. Enterprise over which the Key Managerial Personnel have significant influence

(a) Yash Agro Products Limited

(b) Satori Global Limited

(c) Yash Skills Limited

(d) Yash Ecoenergy Limited

(e) Jingle Bell Nursery School Society

(f) K K Charitable Foundation

d) Other Notes

No amount has been written off/back or provided as doubtful debts during the year in respect of related parties.

(i) Key Managerial Personnel are entitled to post-employment benefits and other long term employee benefits recognized as per Ind AS 19 - ‘Employee Benefits’ in the financial statements. As these employee benefits are lump sum amounts provided on the basis of actuarial valuation, the same is not included above.

5. Segmental Information Business Segment

The Company has determined following reporting segments based on the information reviewed by the Company’s Chief Operating Decision Maker (‘CODM’).

a) Paper

b) Tableware Products

The above business segments have been identified considering :

a) The nature of products

b) The differing risks and returns

c) The internal organization and management structure, and

d) The internal financial reporting systems

The CODM, who is responsible for allocating resources and assessing performance of the operating segments, has been identified as Mr. Jagdeep Hira (Joint Managing Director & CEO), as explained in the Directors’ Report section.

Revenue from major customers

The Company is not reliant on revenues from transactions with any single customer and does not receive 10% or more of its revenue from transactions with any single customer.

6. Transition to Ind AS:

These are the Company’s first financial statements prepared in accordance with Ind-AS.

The Company has adopted Indian Accounting Standards (Ind AS) notified by the Ministry of Corporate Affairs with effect from 1st April, 2016, with a transition date of 1st April, 2016. Ind AS 101 - ‘First-time Adoption of Indian Accounting Standards’ requires that all Ind AS standards and interpretations that are issued and effective for the first Ind AS financial statements which is for the year ended 31st March, 2018 for the company, be applied retrospectively and consistently for all financial years presented. Consequently, in preparing these Ind AS financial statements, the Company has availed certain exemptions and complied with the mandatory exceptions provided in Ind AS 101, as explained below. The resulting difference in the carrying values of the assets and liabilities as at the transition date between the Ind AS and Previous GAAP have been recognized directly in equity (retained earnings or another appropriate category of equity).

A. Exemptions and exceptions availed

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

A.1 Ind-AS Optional Exemptions A.1.1 Deemed Cost

Ind-AS 101 permits a first - time adopter to elect to continue with the carrying value for all of its property, plant and equipment and intangible assets as recognized in the financial statements as at the date of transition to Ind-AS, measured as per the previous GAAP and use that as its deemed cost as at the date of transition.

A.1.2 Foreign Currency Monetary items

In terms of Para D13AA of Ind AS 101, the Company may continue to account for foreign exchange differences relating to long term foreign currency monetary items as per previous IGAAP. The Company has elected to apply the same.

A.2 Ind-AS Mandatory Exceptions A.2.1 Estimates

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

Ind-AS estimates as at 1st April, 2016 are consistent with the estimates as at the same date made in conformity with previous GAAP. The company made estimates for following items in accordance with Ind-AS at the date of transition as these were not required under previous GAAP:

A.2.2 De-recognition of financial assets and liabilities

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

The company has elected to apply the de-recognition provisions of Ind-AS 109 prospectively from the date of transition to Ind-AS.

A.2.3 Classification and measurement of financial assets

Ind-AS 101 requires an entity to assess classification and measurement of financial assets (investment in debt instruments) on the basis of the facts and circumstances that exist at the date of transition to Ind-AS.

A.2.4 Impairment of Financial Assets

Ind AS 101 requires an entity to apply the Ind AS requirements retrospectively if it is practicable without undue cost and effort to determine the credit risk that debt financial instruments where initially recognized. The company has measured impairment losses on financial assets as on the date of transition i.e. 1st April, 2016 in view of cost and effort.

B: Transition to Ind AS Reconciliations

The following reconciliations provide a quantification of the effect of significant differences arising from the transition from previous GAAP to Ind AS as required under Ind AS 101:

(i) Reconciliation of Balance sheet as at April 1, 2016 (Transition Date);

(ii) Reconciliation of Balance sheet as at March 31, 2017;

(iii) Reconciliation of Total Comprehensive Income for the year ended March 31, 2017;

(iv) Reconciliation of Total Equity as at April 1, 2016 and as at March 31, 2017;

(v) Adjustments to Cash Flow Statements as at March 31, 2017

The presentation requirements under previous GAAP differs from Ind AS, and hence, previous GAAP information has been regrouped for ease of reconciliation with Ind AS. The re-grouped previous GAAP information is derived from the Financial Statements of the Company prepared in accordance with previous GAAP.

(v) Adjustments to Cash Flow Statements as at March 31, 2017

The Ind AS adjustments are non cash adjustments. Consequently, Ind AS adoption has no impact on the net cash flow for the year ended 31st March, 2017 as compared with the previous GAAP.

Notes to Reconciliations:

The following explains the material adjustments made during transition from previous GAAP to Ind AS:

1. Investments in Equity Instruments

On the date of transition to Ind AS, the difference between the fair value of Investments recognized at FVTPL as per Ind AS and their corresponding carrying amount as per financial statements prepared under Previous GAAP, has resulted in an increase in the carrying amount of these investments by Rs. 7,869 which has been recognized directly in retained earnings (Equity). There equity instruments are designated at FVTPL.

2. Trade receivable

Under previous GAAP the company has recognized provision on trades receivable based on expectation of company. Under Ind AS , the company provides loss allowance on receivable based on the expected Credit Loss model which is measured following the “simplified approach at amount equal to lifetime expected credit loss at each reporting date.

3. Borrowings

Under previous GAAP transaction cost were recognized in Statement of Profit and Loss. Under Ind AS financial liability in form of borrowing have been measured at amortized cost using Effective Interest Method. Loan from director and sister concern shall be recorded at amortized cost. difference shall be adjusted against retained earnings.

4. Government Grants

Under previous GAAP, Government Grants in respect of Property, Plant and Equipment was presented as a deduction from Property, Plant and Equipment. Under Ind AS, Government Grants in respect of Property, Plant and Equipment need to be presented as deferred income in profit or loss on a systematic basis over the useful life of the asset.

The Company had received Government grant against a capital asset in the year 1986. Under previous GAAP the same was accounted for in Capital Reserve. As the useful life of the capital asset has expired on the date of transition, the same has been written off to Retained Earnings.

“Under Ind AS, import duty waivers for capital assets purchased under Export Promotion Credit Guarantee (EPCG) schemes are recorded as deferred revenue and recognized in Statement of Profit and Loss on a systematic basis over the periods in which the related performance obligations are fulfilled. On the transition date, the Company, therefore, recorded an adjustment to measure such property, plant and equipment in accordance with Ind AS 16. Under Previous GAAP, cost of the property, plant and equipment was recorded at the cash price paid to acquire such assets. Consequently, depreciation relating to the above differences in the cost of property, plant and equipment under Ind AS and Previous GAAP has also been adjusted.”

5. Derivative Contracts

Under previous GAAP, in respect of derivative contracts such as forward exchange contracts, premium/discount arising at the inception of the forward exchange contract to hedge foreign currency risks, were amortized as expense or income over the life of the contract. Exchange differences on such forward exchange contracts were recognized in the Statement of Profit and Loss.

6. 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.

7. Reclassification of MAT as deferred tax

The Company has reclassified the balance of Minimum Alternate Tax (MAT) to Deferred tax as it meets the definition of deferred tax.

8. Remeasurement of Defined benefits liabilities

Under previous GAAP the company recognized remesurement of defined benefits plans under profit and loss. Under Ind AS, remesurement of defined benefits plans are recognized in Other Comprehensive Income

9. Retained Earnings.

Retained earnings as at April 1, 2016 has been adjusted consequent to the above Ind-AS transition adjustments.

10. Other Comprehensive Income

Under Ind AS, all items of income and expense recognized in a period should be included in profit or loss for the period, unless a standard enquires or permits otherwise. Items of income and expense that are not recognized in profit or loss but are shown in the statement of profit and loss as ‘other comprehensive income’ includes remeasurements of defined benefit plans. The concept of other comprehensive income did not exist under previous GAAP.

7. Expenditure on Corporate Social Responsibility (CSR)

In pursuance of the provisions of the Companies Act, 2013 and CSR Policy of the Company it is required to spend two percent of the average net profits for the three immediately preceding financial years towards CSR activities.

Since the company has earned profits in preceding previous years, gross amount required to be spent by the company towards CSR activities during the year is Rs. 3.54 Lakhs. The company has made CSR expenditure during the year of Rs. 7 Lakhs (previous year Nil)

8. Leases

Details of leasing arrangements Finance leases: Company as a lessee

A company has finance lease arrangement for various land leases for terms of 30 years and 90 years . The carrying amount of these assets are shown below:

Operating leases : Company as a lessee

The Company has not entered into any non-cancellable operating leases.

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Mar 31, 2016

1. Term/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 company declares and pays dividends in Indian rupees. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting.

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.

2. Bonus Shares/Shares issued for consideration other than cash/Buy Back of shares during preceding five years: NIL

3. Shares held by holding/ultimate holding company and/or their subsidiary/associate: NIL

4. Money received against Share Warrants

The Shareholder in its Extra-ordinary General Meeting (EGM) held on 18th December, 2015 has approved preferential allottment of 75,40,000 Warrants of Rs.15 each, convertible into equal number of Equity Shares ranking pari-pasu with the existing Equity Shares to Mr Ved Krishna, Managing Director (the promoter) in pursuance of the relevant SEBI Guidelines read with relevant provisions of the Companies Act, 2013. As required, Mr Ved Krishna has paid 25% upfront money for the proposed allotment within 15 days of the EGM. The Warrants were alloted on 31.03.2016 on receiving ''in principle'' approval from the BSE Limited, the Stock Exchange, on 30.03.2016. The Board of Directors have subsequently alloted 21,30,000 Equity Shares of Rs.10/- each at a premium of Rs.5/- per share on 31st March, 2016 on conversion of 21,30,000 Warrants out of aforesaid 75,40,000 Warrants. The Warrant amount of Rs.4,81,87,500 received and pending conversion into Equity Shares has been disclosed as "Money Received against Share Warrants" in the Balance Sheet.

5. The CDR-EG in its meeting held on June 01, 2012 has approved CDR Package (cut off date being July 01, 2011) of the company. Oriental Bank of Commerce (OBC) has been appointed as Monitoring Institution (MI). Final Letter of Approval (LOA) has been issued by the CDR cell to all the lenders with a copy to the company on June 08, 2012. Individual Sanction Letter in line with LOA has been received from all the banks. Master Restructuring Agreement (MRA) has been executed on October 05, 2012 and Joint consortium documents have been executed on November 20, 2012. CDR has been implemented successfully.

6. All the existing term loans, fresh term loans and FITL are secured by pari-passu first charge on all the fixed assets of the company and second pari-passu charge on the current assets of the company.

Pledge of 83,37,456 fully paid-up Equity Share of the company held by the promoters.

Corporate Guarantee of Yash Agro Products Limited & Satori Global Limited, the associates.

Personal Guarantee of promoter directors of the company Mr Ved Krishna and Mrs. Manjula Jhunjhunwala.

7. These Loans are repayable over a period of 8 years in structured thirty two quarterly installment commencing from September 2013 to June 2021.

8. Working capital facilities are secured by pari-passu first charge on all the current assets of the company and second pari-passu charge on fixed assets of the company.

9. a) Indian rupee loan from banks (cash credit) carries interest of Base Rate of OBC 400 bps (presently @ 13.70% p.a.)

b) Packing Credit from State bank of India (outstanding as on 31.03.2016 – Rs. 9,40,174) carries interest of base rate 45 bps (presently 9.75% p.a.)

c) FCNRB Demand Loan from bank carries interest of LIBOR 4.50% & 4.91%

10. The company has requested confirmation from Suppliers regarding their registration (filing of Memorandum) under the Micro, Small and Medium Enterprises Development Act, 2006 (the Act). According to the information available with the company there was no amount(principal and/or interest) due to any micro/small enterprises(SME as defined in the Act) as at the end of the year. There is no delay in payment to SME during the year. No interest was paid/payable on account of delay in payment to SME during the year in terms of Section 16 of the Act.

11. No amounts is due for payment to Investor Education & Protection Fund.

12. As the Company''s business activity falls within a single segment viz. ''Paper'', the disclosure requirements of Accounting Standard 17 "Segment Reporting" is not applicable.

13. A sum of Rs.15,47,59,000 had been recognized as income accrued during the period from April, 2007 to December, 2012 based on the Emission Reduction Purchase Agreement (ERPA) with Belgian State for sale of CERs (Certified Emission Reductions) generated from the 6 MW Co-generation Power Plant Project registered as CDM (Clean Development Mechanism) with UNFCCC (The United Nations Framework Convention on Climate Change). The Belgian State has terminated the ERPA due to non delivery of CERs. Consequently, the receivable aggregating to Rs.15,47,59,000 as recognized in earlier years in this regard was written off in the financial year 2014-15 and the same was disclosed as "Extraordinary Item" in the Statement of Profit and Loss.

14. Disclosure in terms of AS 28 (Impairment of Assets)

Recoverable amount of the assets or the recoverable amount of the cash generating unit to which the asset belongs is not less than the carrying amount; hence no provision is required on account of impairment of assets as on the date of Balance Sheet.

15. Disclosure in terms of AS 29 (Provisions, Contingent Liabilities and Contingent Assets)

The Company has recognized contingent liabilities as disclosed in Note no 36 above and as such no provision is required to be made. No provision was outstanding as at the beginning and at the end of the period.

16. Confirmation of balances with sundry debtors/creditors, loans and advances and other parties have not been received in few cases.

17. Trade Receivables and Capital Advance include Rs.198,81,621 and Rs.54,47,521 respectively outstanding for more than three years and/or under litigation. Management is confident that entire amount is realizable hence the same has been considered as good and no provision is required.

18. The company has implemented ERP-SAP, accounting software during the year. During the course of implementation of SAP-ERP, the cost formula used in valuation of inventories of stores and spares (excepting paddy husk) has been changed from FIFO method as followed in earlier years to Weighted Average Cost method to follow the uniform cost formula across all the inventories of Raw material, stores and Spares. Out of total inventories of Rs.49,24,06,677 as at 31st March, 2016, such inventories aggregate to Rs.8,05,01,645. The impact of such change on inventories could not ascertained due to large number of items in such inventories.

19. The Company has not accepted any deposit under Section 73 or Section 76 of the Companies Act, 2013 (the Act) read with the Companies (Acceptance of Deposit) Rules, 2014 during the year. However, the Company had accepted deposits in earlier years in compliance of provisions of Section 58A of the Companies Act, 1956 read with the Companies (Acceptance of Deposit) Rules, 1975 which, pursuant to Section 74 (1)(b) of the Companies Act, 2013, need to be repaid within one year from April 1, 2014 (i.e. by March 31, 2015) or on the date on which such payments are due, whichever is earlier. On application by the company, the Company Law Board, vide its Order dated 27.05.2015, has extended the time for repayment of such deposit till due date, in terms of Section 74 (2) of the Act. The company has paid the deposits matured during the year.

20. Previous year''s figures have been reclassified / regrouped wherever required in order to make them comparable with those of current year.

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Mar 31, 2015

1. Term/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 company declares and pays dividends in Indian rupees. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting. 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.

2. Bonus Shares/Shares issued for consideration other than cash/Buy Back of shares during preceding five years: NIL

3. Shares held by holding/ultimate holding company and/or their subsidiary/associate: NIL

4. The CDR-EG in its meeting held on June 01,2012 has approved CDR Package (cut off date being July 01,2011) of the company. Oriental Bank of Commerce (OBC) has been appointed as Monitoring Institution (MI). Final Letter of Approval (LOA) has been issued by the CDR cell to all the lenders with a copy to the company on June 08, 2012. Individual Sanction Letter in line with LOA has been received from all the banks. Master Restructuring Agreement (MRA) has been executed on October 05, 2012 and Joint consortium documents have been executed on November 20, 2012. CDR has been implemented successfully.

5. All the existing term loans, fresh term loans and FITL are secured by pari-passu first charge on all the fixed assets of the company and second pari-passu charge on the current assets of the company.

Pledge of 99.92% equity share of the Company held by the promoters.

Corporate Guarantee of Yash Agro Products Ltd. & Satori Global Limited, the associates.

Personal Guarantee of promoter directors of the company Mr Ved Krishna and Mrs. Manjula Jhunjhunwala.

6. These Loans are repayable over a period of 8 years in structured thirty two quarterly instalment commencing from September 2013 to June 2021.

7. Working capital facilities are secured by pari-passu first charge on all the current assets of the company and second pari-passu charge on fixed assets of the company.

8. The company has requested confirmation from Suppliers regarding their registration (filling of Memorandum) under the Micro, Small and Medium Enterprises Development Act, 2006 (the Act). According to the information available with the company there was no amount(principal and/or interest) due to any micro/small enterprises(SME as defined in the Act) as at the end of the year. There is no delay in payment to SME during the year. No interest was paid/payable on account of delay in payment to SME during the year in terms of Section 16 of the Act.

9. No amounts is due for payment to Investor Education & Protection Fund.

10. The related party disclosure in accordance with AS 18 ''Related Party Disclosures'' issued by ICAI, is given below:

a. List of related parties with whom transactions have taken place during the Year:

i. Key management personnel and relatives:

(a) Mr Ved Krishna, Managing Director (Promoter)

(b) Mrs Manjula Jhunjhunwala, Director (Promoter)

(c) Mr N. K. Agarwal, Director Works

(d) Mr R. N. Chakraborty, Director (resigned with effect from 28.06.2014)

(e) Mr Nikhil Gupta, CFO (from 15.05.2014 to 13.03.2015)

(f) Mr Girish Kumar, Wholetime Director & CEO (04.07.2014 to 10.11.2014 & CEO from 15.05.2014 to 10.11.2014)

(g) M/s Ved Krishna, HUF

ii. Entities over which KMP or relatives of KMP are able to exercise significant influence:

(a) Yash Agro Products Limited

(b) Satori Global Limited

(c) Yash Skills Limited

(d) M/s Jingle Bell Nursery School Society

(e) M/s K K Charitable Foundation

11. CONTINGENT LIABILITIES Amount in Rs.

Claim against the company not acknowledged as debt (net of amounts paid): 2014-15 2013-14

* Excise duty 30,128,372 30,128,372

* Trade Tax NIL 270,957

* Income Tax 2,543,300 2,543,300

* Others 24,954,695 24,048,163

Guarantee given by Banks 5,700,000 5,400,000

Letter of Credits 4,015,484 23,825,200

12. Above claims are likely to be decided in favour of the company, hence not provided for.

13.. As the Company''s business activity falls within a single segment viz. ''Paper, the disclosure requirements of Accounting Standard 17 "Segment Reporting" is not applicable.

14. A sum of Rs.15,47,59,000 had been recognised as income accrued during the period from April, 2007 to December, 2012 based on the Emission Reduction Purchase Agreement (ERPA) with Belgian State for sale of CERs (Certified Emission Reductions) generated from the 6 MW Co-generation Power Plant Project registered as CDM (Clean Development Mechanism) with UNFCCC (The United Nations Framework Convention on Climate Change). The Belgian State has terminated the ERPA due to non delivery of CERs. Consequently, the receivable aggregating to Rs.15,47,59,000 as recognised in earlier years in this regard has been written off and the same has been disclosed as "Extraordinary Item" in the Statement of Profit and Loss.

15. Disclosure in terms of AS 28 (Impairment of Assets)

Recoverable amount of the assets or the recoverable amount of the cash generating unit to which the asset belongs is not less than the carrying amount; hence no provision is required on account of impairment of assets as on the date of Balance Sheet.

16. Disclosure in terms of AS 29 (Provisions, Contingent Liabilities and Contingent Assets)

The Company has recognised contingent liabilities as disclosed in Note no 36 above and as such no provision is required to be made. No provision was outstanding as at the beginning and at the end of the period.

17. Confirmation of balances with sundry debtors/creditors, loans and advances and other parties have not been received in few cases.

18. Sundry Debtors include Rs.195,48,615 outstanding for more than two years and under litigation. Management is confident that entire amount is realisable hence the same has been considered as good and no provision is required.

19. The depreciation had been charged on Straight Line Method (SLM Method) in accordance with the then applicable Schedule XIV to the Companies Act, 1956 upto financial year 2013-14. Consequent upon Schedule II being specified in the Companies Act, 2013 with effect from 01.04.2014, the depreciation for the current year has been charged on SLM Method in accordance with the useful life provided in the aforesaid Schedule II. In terms of Note no. 7(b) of Schedule II, Rs.39,61,725 (net of Deferred Tax Rs.20,40,000) being the carrying amount of the assets after retaining the residual value has been charged against the opening balance in retained earnings (Surplus in the Statement of Profit and Loss) where useful life of an assets is Nil. Had there been no change, depreciation for the year and loss for the year had been higher by Rs.2,52,86,852.

20. The Company has not accepted any deposit under Section 73 or Section 76 of the Companies Act, 2013 read with the Companies (Acceptance of Deposit) Rules, 2014 during the year. However, the Company had accepted deposits in earlier years in compliance of provisions of Section 58A of the Companies Act, 1956 read with the Companies (Acceptance of Deposit) Rules, 1975 which, pursuant to Section 74 (1)(b) of the Companies Act, 2013, need to be repaid within one year from April 1,2014 or from the date on which such payments are due, whichever is earlier. The company has paid the deposits matured during the year. The Company has applied under Section 74(2) of the Companies Act, 2013 to the Company Law Board, New Delhi on March 30, 2015 in the prescribed Form No.7 for extension of repayment period in respect of unpaid deposits yet to be matured as at 31.03.2015. The application has been admitted by the Hon''ble Company Law Board, New Delhi on 31.03.2015, for the necessary direction.

21. Previous year''s figures have been reclassified / regrouped wherever required in order to make them comparable with those of current year.

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Mar 31, 2014

1. The related party disclosure in accordance with AS 18 ''Related Party Disclosures'' issued by ICAI, is given below: a. List of related parties with whom transactions have taken place during the Year: i. Key management personnel and relatives:

Mr. Ved Krishna (Managing Director), Mrs. Manjula Jhunjhunwala (Director), Mr. Narendra Agarwal (Director Works), Mr. R. N. Chakraborty (Director) and M/s Ved Krishna H.U.F.

ii. Entities & Associates

Yash Agro Products Limited, Satori Global Limited and M/s Jingle Bell Nursery School Society

2. CONTINGENT LIABILITIES

Amount in Rs.

Particulars 2013-14 2012-13 Claim against the company not acknowledged as debt (refer Note 36.1)

- Excise duty 30,128,372 35,834,606

- Trade Tax 270,957 138,209

- Income Tax 2,543,300 43,949

- Others 24,048,163 24,955,000

Guarantee given by Banks 5,400,000 5,000,000

Letter of Credits 23,825,200 18,877,395

3. As the Company''s business activity falls within a single segment viz. ''Paper'', the disclosure requirements of Accounting Standard 17 "Segment Reporting" is not applicable.

4. A sum of Rs.15,47,59,000 has been recognised as income accrued for the period from April, 2007 to December, 2012 based on the Emission Reduction Purchase Agreement (ERPA) with Belgian State for sale of CERs (Certified Emission Reductions) generated from the 6 MW Co-generation Power Plant Project registered as CDM (Clean Development Mechanism) with UNFCCC (The United Nations Framework Convention on Climate Change). Total amount receivable as at the year end Rs.15,47,59,000 has been disclosed as Other Current Assets. Though The accounting treatment is not in conformity with the "Guidance Note on Accounting of self-generated Certified Emission Reductions (CERs)" issued by the Institute of Chartered Accountants of India (the Guidance Note), made effective from accounting periods beginning on or after April 01, 2012, but the revenue has been recognised in the accounts on the basis of ERPA for the period covered in ERPA only. The audit for the period April,2007 to August, 2008 has already been completed and the no. of CER''s accounted for in the books of accounts for the period have been verified by the UNFCCC appointed auditors. We are expecting to the receipt of CER''s within next quarter.

5. DISCLOSURE IN TERMS OF AS 28 (IMPAIRMENT OF ASSETS)

Recoverable amount of the assets or the recoverable amount of the cash generating unit to which the asset belongs is not less than the carrying amount; hence no provision is required on account of impairment of assets as on the date of Balance Sheet.

6. DISCLOSURE IN TERMS OF AS 29 (PROVISIONS, CONTINGENT LIABILITIES AND CONTINGENT ASSETS)

The Company has recognised contingent liabilities as disclosed in Note no 36 above and as such no provision is required to be made. No provision was outstanding as at the beginning and at the end of the period.

7. Confirmation of balances with sundry debtors/creditors, loans and advances and other parties have not been received in few cases.

8. Figures for the previous year figures have been reclassified / regrouped wherever required. Figures in brackets pertains to previous year.

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Mar 31, 2013

1. The related party disclosure in accordance with AS 18 ''Related Party Disclosures'' issued by ICAI, is given below: a. List of related parties with whom transactions have taken place during the Year: i. Key management personnel and relatives:

Mr. Ved Krishna (Managing Director), Mrs. Manjula Jhunjhunwala (Director) and Mr. Narendra Agrawal (Director Works) and

Mr. R. N. Chakraborty (Director)

ii. Entities & Associates

Megha Agro Products Limited, Satori Global Limited and M/s Jingle Bell Nursery School Society

2. Contingent Liabilities (Amount in Rs.)

Particulars 2011-12

Claim against the company not acknowledged as debt

Excise duty 35,834,606 35,834,606

Trade Tax 138,209 138,209

Income Tax 43,949 43,949

Others 24,955,000 24,955,000

Guarantee given by Banks 5,000,000 2,013,000

3. As the Company''s business activity falls within a single segment viz. ''Paper, the disclosure requirements of Accounting Standard 17 "Segment Reporting” is not applicable.

4. A sum of Rs.256,30,000 (Rs.343,95,000) has been recognised as income accrued during the year (for the period from April 2012 to December, 2012) based on the Emission Reduction Purchase Agreement (ERPA) with Belgian State for sale of CERs (Certified Emission Reductions) generated from the 6 MW Co-generation Power Plant Project registered as CDM (Clean Develop- ment Mechanism) with UNFCCC (The United Nations Framework Convention on Climate Change). Total amount receivable as at the year end Rs. 1547,59,000 has been disclosed as Other Current Assets. Though The accounting treatment is not in conformity with the "Guidance Note on Accounting of self-generated Certified Emission Reductions (CERs)” issued by the Institute of Chartered Accountants of India (the Guidance Note), made effective from accounting periods beginning on or after April 01, 2012, but the revenue has been recognised in the accounts on the basis of ERPA for the period covered in ERPA only.

5. Disclosure in terms of AS 28 (Impairment of Assets)

Recoverable amount of the assets or the recoverable amount of the cash generating unit to which the asset belongs is not less than the carrying amount; hence no provision is required on account of impairment of assets as on the date of Balance Sheet.

6. Disclosure in terms of AS 29 (Provisions, Contingent Liabilities and Contingent Assets)

The Company has recognised contingent liabilities as disclosed in Note no 37 above and as such no provision is required to be made. No provision was outstanding as at the beginning and at the end of the period.

7. Income tax assessment has been completed up to the assessment year 2010-11.

8. Confirmation of balances with sundry debtors/creditors, loans and advances and other parties have not been received in few cases.

9. Figures for the previous year figures have been reclassified / regrouped wherever required. Figures in brackets pertains to previous year.

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Mar 31, 2012

1.1 Term/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 Company declares and pays dividends in Indian rupees. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting.

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.

1.2 Bonus Shares/Shares for consideration other than cash issued & Buy Back of shares during preceding five years: NIL

1.3 Shares held by holding/ultimate holding company and/or their subsidiary/associate: NIL

2.1 37,00,000 Shares alloted against Share Application Money during the year 2012-13 (on 24.05.2012)

2.2 The Company was having sufficient authorised capital to cover the share capital amount resulting from the allotment of shares out of the share application money out standing as on 31.03.2012. There was no delay in issuing the shares against the said application amount.

3.1 Continuing default as on the Balance Sheet date:

There has been default in repayment of term loans, interest thereon and interest on working capital loans to consortium of banks due to financial crisis. The detail of defaults/irregularities for the year and as on 31st March, 2012 in terms of sanction(s) is as under:

3.2 Subsequent to Balance Sheet date, the Empowered Group of Corporate Debt Restructuring Cell (CDR-EG) has approved the final restructuring package (CDR Package) of the Company; the details thereof is as under:

The CDR-EG in its meeting held on June 01, 2012 has approved CDR Package of the Company. Oriental Bank of Commerce (OBC) has been appointed as Monitoring Institution (MI). Final Letter of Approval (LOA) has been issued by the CDR cell to all the lenders with a copy to the Company on June 08, 2012. Individual Sanction Letter in line with LOA has been received from Oriental Bank of Commerce & United Bank of India and is pending from State Bank of India, Union Bank of India & UCO Bank.

The salient features of the CDR Package are as under:

Cut-off Date (COD) is July 01, 2011

Holding on operation (i.e. no debit/recovery of dues by lenders) & continuance of working capital limits at existing sanctioned level till implementation of CDR Package.

Moratorium period of two years in respect of existing term loan of 57.06 Crores (as on 30.06.2011) from COD & repayment thereof in thirty two structured quarterly instalments commencing from September 2013 till June 2021.

Funding of Interest on existing term loan @ 14.25% (simple rate of interest) for twenty four months from COD (i.e. FITL) & repayment thereof in thirty two structured quarterly instalments commencing from September 2013 till June 2021 (Rate of interest for FITL @ 11.50 p.a.).

Sanction of fresh term loan of Rs 8.33 Crores.

Additional fund based working capital limit of Rs 17.28 Crores.

Additional non-fund based limit of Rs 2.34 Crores.

3.3 The accounting of interest for the period from July 2011 to Mar 2012 and classification of loans into Long term & current maturities has been done in terms of the said CDR Package.

3.4 All the existing term loans, fresh term loans and FITL are secured by pari-passu first charge on all the fixed assets of the Company and second pari-passu charge on the current assets of the Company.

Pledge of 100% equity share of the Company held by the promoters.

Corporate Guarantee of Megha Agro Products Ltd & Satori Global Ltd., the associates.

Personal Guarantee of promoter directors of the Company Mr Ved Krishna and Mrs. Manjula Jhunjhunwala.

3.5 These Loans are repayable over a period of 8 years in structured thirty two quarterly instalment commencing from September 2013 to June 2021.

3.6 Secured against Vehicle financed.

4.1 Working capital facilities are secured by pari-passu first charge on all the current assets of the Company and second pari-passu charge on fixed assets of the Company.

4.2 Working capital facilities are also covered in CDR. Please refer Note 5.1 and 5.2 in this regard.

5.1 The Company has requested confirmation from Suppliers regarding their registration (filling of Memorandum) under the Micro, Small and Medium Enterprises Development Act, 2006 (the Act). According to the information available with the Company there was no amount(principal and/or interest) due to any micro/small enterprises(SME as defined in the Act) as at the end of the year. There is no delay in payment to SME during the year. No interest was paid/payable on account of delay in payment to SME during the year in terms of Section 16 of the Act.

6.1 There are no amounts due for payment to Investor Education & Protection Fund as at the year end.

6.2 Continuing default as on the Balance Sheet date

7. THE RELATED PARTY DISCLOSURE IN ACCORDANCE WITH AS 18 'RELATED PARTY DISCLOSURES' ISSUED BY ICAI, IS GIVEN BELOW: a. List of related parties with whom transactions have taken place during the Year:

i. Key management personnel and relatives:

Mr. Ved Krishna (Managing Director), Mr. R.N. Chakraborty (Director), Mrs. Manjula Jhunjhunwala (Director)

ii. Entities & Associates

Megha Agro Products Limited, Satori Global Limited and M/s Jingle Bell Nursery School Society.

8. As the Company's business activity falls within a single segment viz. 'Paper', the disclosure requirements of Accounting Standard 17 "Segment Reporting" issued by the Institute of Chartered Accountants of India is not applicable.

9. A sum of Rs.343,95,000 (Rs.306,03,000) has been recognised as income accrued for the year ended 31st March, 2012 based on Agreement (Emission Reduction Purchase Agreement) with Belgium State for sale of CERs (Certified Emission Reductions) generated from the 6 MW Co-generation Power Plant Project registered as CDM (Clean Development Mechanism) with UNFCCC (The United Nations Framework Convention on Climate Change). Total amount receivable as at the year end Rs. 1291,29,000 has been disclosed as Other Current Assets.

10. DISCLOSURE IN TERMS OF AS 28 (IMPAIRMENT OF ASSETS)

Recoverable amount of the assets or the recoverable amount of the cash generating unit to which the asset belongs is not less than the carrying amount; hence no provision is required on account of impairment of assets as on the date of Balance Sheet.

11. DISCLOSURE IN TERMS OF AS 29 (PROVISIONS, CONTINGENT LIABILITIES AND CONTINGENT ASSETS)

The Company has recognised contingent liabilities as disclosed in Note no 37 above and as such no provision is required to be made. No provision was outstanding as at the beginning and at the end of the period.

12. Income tax assessment has been completed upto the assessment year 2009-10.

13. Confirmation of balances with sundry debtors/creditors, loans and advances and other parties have not been received in few cases.

14. The Financial Statements for the year ended 31st March, 2011 had been prepared as per the then applicable, pre-revised Schedule VI to the Companies Act, 1956. Consequent to the notification of revised Schedule VI under the Companies Act, 1956 the financial statements for the year ended 31st March, 2012 are prepared as per revised Schedule VI. Accordingly, the previous year figures have also been reclassified to conform to this year's classification. Figures in brackets pertains to previous year.

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Mar 31, 2010

1. Estimated amount of Contracts remaining to be executed on capital account and not provided for (net of advances)

Rs. Nil (Rs. Nil)



2. Contingent Liability not provided for:

Rupees in lacs

a. Claims against the Company not acknowledged as debt:

Current Year Previous Year

i. Excise duty 2.47 (1.29)

ii. Trade Tax, Appeals pending with Honble High Court, Allahabad NIL (1.64)

iii.Trade Tax, Appeals pending with Tribunal/

Jt. Commissioner (Appeals), Faizabad 4.62 (2.55)

iv. Commissioner of Income Tax (Appeal), Kanpur 12.50 (36.85)

v. Others 3.03 (5.50)

b. Custom Duty in respect of future export obligation in accordance with Exim Policy 24.97 (23.48)

c. Guarantee given by Banks 20.13 (32.58)

d. Loss on Derivative (Structured USD/CHF option) 158.95 (134.42)



Above claims are likely to be decided in favour of the Company, hence not provided for.

3. In the opinion of the Board and to the best of their knowledge and belief the value on realisation of the current assets, loans and advances, if realised, in the ordinary course of business would not be less than the amount at which they are stated in the Balance Sheet. The provisions for all known liabilities are adequate and not in excess of amount considered reasonably necessary.

4. Confirmation of balances with sundry debtors/creditors, loans and advances and other parties have not been received in few cases.

5. Disclosure in terms of AS 15 (Employee Benefits):

Defined Contribution Plan – Provident Fund and Family Pension Fund

Contribution to recognised Provident Fund and Family Pension Fund amounting to Rs. 35.00 lacs (Rs. 27.28 lacs) has been recognised as an expense and included in Schedule 16 "Contribution to Provident and Other Funds".

Defined Benefit Plan - Gratuity

Companys Gratuity Trust is administered through the Life Insurance Corporation of India (LIC). Contributions are provided on the basis of actuarial valuation as per the Projected

6. Disclosure in terms of AS 28 (Impairment of Assets)

Recoverable amount of the assets or the recoverable amount of the cash generating unit to which the asset belongs is not less than the carrying amount; hence no provision is required on account of impairment of assets as on the date of Balance Sheet.

7. Disclosure in terms of AS 29 (Provisions, Contingent Liabilities and Contingent Assets)

The Company has recognised contingent liabilities as disclosed in Note No. B-2 above and as such no provision is required to be made. No provision was outstanding as at the beginning and at the end of the period.

8. Disclosure in terms of Clause 32 of the Listing Agreement

The Company has not granted any loan / advances in the nature of loan as stipulated in Clause 32 of the Listing Agreement with the Stock Exchanges.

9. Additional information as required under paragraphs 3, 4C and 4D of Part II of Schedule VI to the Companies Act, 1956 are as under:-

10. Fixed deposit receipts for Rs. 30,000 (Rs. 30,000) are pledged with the Assistant Commissioner, Trade Tax (Assessment), Faizabad as security and fixed deposit receipts for Rs. 5,05,000 (Rs. 17,53,600) are pledged with the banks against the Guarantees given to the following parties:-

11. Fixed deposits include Rs. 16,88,161 (Rs. 7,89,980), Interest accrued but not due Rs. 2,84,776 (Rs.1,94,571) and other liabilities include Rs.2,38,129 (Rs.66,680) due to directors.

12. Loans and Advances include Rs. 1,88,722 ( NIL ) due to a director. Maximum amount outstanding at any time during the year was Rs. 12,21,670.

14. As the Companys business activity falls within a single segment viz. Paper, the disclosure requirements of Accounting Standard 17 "Segment Reporting" issued by the Institute of Chartered Accountants of India is not applicable.

15. Interest on Term Loan and Fixed Deposits include Rs. 1,61,835 (Rs. 1,00,336) paid to Directors on Fixed deposits accepted by the Company.

16. Related parties disclosures as required under Accounting Standard 18 "Related Parties Disclosure" issued by the Institute of Chartered Accountants of India are given as below:

a. List of related parties with whom transactions have taken place during the Year:

i. Key management personnel and relatives:

Mr. Ved Krishna (Managing Director), Mr. R.N. Chakraborty (Executive Director), Mrs. Manjula Jhunjhunwala (Director), Mrs. Shailja Krishna (relative)

ii. Entities & Associates

Megha Agro Products Limited, Satori Global Private Limited (formerly Sargam Exim Private Limited) and M/s Jingle Bell Nursery School Society

17. The Company has not received any intimation from suppliers regarding status under Micro, Small and Medium Enterprises Development Act, 2006 and hence the disclosure required under the Act could not be compiled and disclosed.

18. Income tax assessment has been completed up to the assessment year 2007-08.

19. A sum of Rs. 270.48 lacs (Rs. 294.75 lacs) has been recognised as income accrued for the year ended 31st March, 2010 based on Agreement (Emission Reduction Purchase Agreement) with Belgian State for sale of CERs (Certified Emission Reductions) generated from the 6MW Co-generation Power Plant Project registered as CDM (Clean Development Mechanism) with UNFCCC (The United Nations Framework Convention on Climate Change). Total amount receivable as at the year end Rs. 654.81 lacs has been disclosed as Other Current Assets in the Balance Sheet.

20. The Company has disputed a Derivative transaction (Structured USD/CHF Option) entered into with ICICI Bank Ltd. in the year 2007-08. Loss of Rs. 55.84 lacs on account of unwinding charges (partial unwinding), Rs. 64.12 lacs on account of ‘Mark to Market valuation of outstanding exposure and Rs. 38.99 lacs (including Rs. 24.53 lacs for the current year) on account of unpaid interest accrued on above; aggregating to Rs. 158.95 lacs has not been provided in the books. On the basis of legal opinion no provision has been considered necessary by the management. However the same has been disclosed as contingent liability in Note no. B-2(d) above.

21. Intangible Assets – Expenditure on Research and Development (AS 26)

22. During the year, the Authorised Capital has been increased from Rs. 30.00 Crore to Rs.60.00 Crore. The Company has paid a fee of Rs.15,06,000/- to the Registrar of Companies. This has been disclosed under Miscellaneous Expenditure in the Balance Sheet. The same will be transferred to Share Premium Account on issue of shares.

23. Figures in bracket pertain to previous year and have been regrouped / rearranged wherever necessary to make them comparable.

24. The Balance Sheet Abstract and Companys general business profile as required by Part IV of Schedule VI to the Companies Act, 1956 are given in the annexure attached.