Notes to Accounts of Rajshree Polypack Ltd.

Mar 31, 2025

The company has not granted any loan or advance in nature of loan to promoter, directors and KMP either severally or jointly with any other person.

The inter corporate loan given to Olive Ecopack private limited includes accrued interest Rs. 175.00 lakhs (March 31,2024 Rs. 148.05 lakhs) Based on the binding term sheet. The company has granted the unsecured loan of Rs. 1,480.00 lakhs (March 31,2024 Rs. 995.00 lakhs) during the year to Olive Ecopak private limited which is interest bearing. The Company has extended the above loan to facilitate the establishment of a new manufacturing unit in Umbergaon, situated in the Valsad district. The loan enabled OEPL to acquire 12 acres of land and commence preparatory work for the project''s development, as well as facilitate the import of necessary production machinery.

Note: 19.1 Terms/ rights attached to equity shares :

i) The Company has only one class of equity shares having at par value of Rs. 5 (F.Y 2023-24 : 10) per share. Each holder of equity share is entitled to one vote per equivalent fully paid up equity share.

ii) In the event of liquidation of the Company, the holder of equity shares will be entitled to receive remaining assets of the Company, after distribution of all preferential amounts. The distribution will be in proportion to the number of equivalent fully paid up equity shares held by the shareholders.

iii) The Company declare and pays dividend in Indian Rupees. Each equity share has the same right of dividend.

iv) The Board at its meeting held on 6th August, 2024 approved sub division of equity shares of the company with existing face

value of Rs. 10 each fully paid up into 2 each fully paid shares of Rs. 5 each consequential amendment to the Memorandum of Association of the Company is approved by Shareholders through AGM held on 29th August, 2024.

* During the financial year, the Company allotted 20,000 equity shares of ?10/- each as fully paid-up bonus shares to the preferential allottee. These shares were earlier kept under abeyance. The allotment was made in the ratio of 1:2, i.e., two bonus equity shares of ?10/- each fully paid-up for every one existing equity share of ?10/- each fully paid-up, pursuant to ordinary resolution passed by shareholders vide postal ballots on February 16, 2024.

* The Board at its meeting held on 6th August, 2024 approved sub division of equity shares of the company with existing face value of Rs. 10 each fully paid up into 2 each fully paid shares of Rs. 5 each consequential amendment to the Memorandum of Association of the Company is approved by Shareholders through AGM held on 29th August, 2024.

**Out of the 87,500 shares reserved under the ESOP scheme, an original grant of 13,000 options (which became 26,000 options after the share subdivision) is eligible for the bonus issue declared by the Company in FY 2023-24 at a ratio of 1:2.

As a result, the total number of Original options under the ESOP scheme has increased to 78,000 options.

Note: 19.7 No Class of shares has been bought back by the Company during the period of five years immediately preceding the current year end.

(a) During F.Y 2023-24, the Company allotted 2,44,28,000 equity shares of Rs. 10 each as fully paid up bonus shares by utilising Securities Premium amounting to Rs. 24,22,80,000, pursuant to ordinary resolution passed by shareholders vide postal ballots on February 16, 2024..

(b) On December 11, 2023, the Company has allotted 3,00,000 Warrants convertible into Equity shares, each at an issue price of Rs.209 per share (including a premium of Rs. 199 per share) to non-promoters through preferential allotment. This was approved by the shareholders in the Extra Ordinary General Meeting held on November 8, 2023, by passing a special resolution. Balance 75% of the issue price (i.e. Rs. 156.75 per warrant) shall be payable within 18 months from the date of allottment.The no of outstanding shares warrants as on 31st March 2025 after giving impact of subdivision of shares are 6,00,000 which are also eligible for bonus shares as declared by the company in FY 23-24

Nature and Purpose of Reserves(i) Securities Premium Reserve

Securities premium is used to record the premium received on issue of shares. The reserve is utilised in accordance with the provisions of the Companies Act, 2013.

(ii) Retained earnings

Retained earnings represent the accumulated earnings net of losses if any made by the Company over the years as reduced by dividends or other distributions paid to the shareholders and includes other comprehensive income.

(iii) Share option outstanding account

The company has established equity - settled share based payment plan for certain categories of employees of the company. The balance is employee share options account represent the expenses recorded pursuant to the aforesaid schemes for which the options are not yet vested or exercised (Refer Note No 47).

22.1 Term loan from bank as on 31st March, 2025 amounting to Rs. Nil ( 31st March 2024: Rs. 24.07 lakhs) was taken from HDFC and carries interest rate @ 9.25%. The loan is repayable in 36 (Thirty Six) monthly instalments commencing from February 2022 with 12 months Moratorium period. The loan is covered by 100% guarantee from NCGTC (National Credit Guarantee Trustee Company Ltd (Ministry of Finance, Government of India). Further, the loan has been guaranteed by the personal guarantee of directors.

22.2 Term loan from bank as on 31st March, 2025 amounting to Rs. 4.28 lakhs ( 31st March 2024: Rs. 36.95 lakhs) was taken from HDFC and carries interest rate @ 9.25% The loan is repayable in 36 (Thirty Six) monthly instalments commencing from May 2022 with 12 months Moratorium period. The loan is covered by 100% guarantee from NCGTC (National Credit Guarantee Trustee Company Ltd (Ministry of Finance, Government of India). Further, the loan has been guaranteed by the personal guarantee of directors.

22.3 Term loan from bank as on 31st March, 2025 amounting to Rs. 99.84 lakhs ( 31st March 2024: Rs. 146.18 lakhs) was taken from HDFC and carries interest rate @ 9.25%. The loan is repayable in 36 (Thirty six) monthly instalments commencing from February 2024 with 24 months Moratorium period. The loan is covered by 100% guarantee from NCGTC (National Credit Guarantee Trustee Company Ltd (Ministry of Finance, Government of India). Further, the loan has been guaranteed by the personal guarantee of directors.

22.4 Term loan from bank as on 31st March, 2025 amounting to Rs. 207.67 lakhs ( 31st March 2024: Rs. 254.36 lakhs) was taken from Shamrao Vithal Co-operative Bank and carries interest rate @ 9.25%. The loan is repayable in 84 (Eighty four) monthly instalments commencing from Dec 2021 with 6 months Moratorium period. The loan is secured by hypothecation of Current Asset, Plant & Machinery and third party land & Building. Further, the loan has been guaranteed by the personal guarantee of directors.

22.5 Term loan from bank as on 31st March, 2025 amounting to Rs. 276.46 lakhs ( 31st March 2024: Rs. 336.95 lakhs) was taken from Shamrao Vithal Co-operative Bank and carries interest rate @ 9.25%. The loan is repayable in 84 (Eighty four) monthly instalments commencing from Jan 2022 with 6 months Moratorium period. The loan is secured by hypothecation of Current Asset, Plant & Machinery and third party land & Building. Further, the loan has been guaranteed by the personal guarantee of directors.

22.6 Term loan from bank as on 31st March, 2025 amounting to Rs. 98.59 lakhs ( 31st March 2024: Rs. 123.02 lakhs) was taken from Shamrao Vithal Co-operative Bank and carries interest rate @ 9.25%. The loan is repayable in 84 (Eighty four) monthly instalments commencing from Jan 2022. The loan is secured by hypothecation of Current Asset, Plant & Machinery and third party land & Building. Further, the loan has been guaranteed by the personal guarantee of directors.

22.7 Term loan from bank as on 31st March, 2025 amounting to Rs. 226.13 lakhs ( 31st March 2024: Rs. 267.87 lakhs ) was taken from Shamrao Vithal Co-operative Bank and carries interest rate @ 9.25%. The loan is repayable in 84 (Eighty four) monthly instalments commencing from Aug 2022 with 6 months Moratorium period. The loan is secured by hypothecation of Current Asset, Plant & Machinery and third party land & Building. Further, the loan has been guaranteed by the personal guarantee of directors.

22.8 Term loan from bank as on 31st March, 2025 amounting to Rs. Nil ( 31st March 2024: Rs. 7.32 lakhs) was taken from Shamrao Vithal Co-operative Bank and carries interest rate @ 9.25%. The loan is repayable in 84 (Eighty four) monthly instalments commencing from Jul 2022 with 6 months Moratorium period. The loan is secured by hypothecation of Current Asset, Plant & Machinery and third party land & Building. Further, the loan has been guaranteed by the personal guarantee of directors.

22.9 Term loan from bank as on 31st March, 2025 amounting to Rs. 322 lakhs ( 31st March 2024: Rs. Nil) was taken from Shamrao Vithal Co-operative Bank and carries interest rate @ 9.25%. The loan is repayable in 56 (Fifty six) monthly instalments commencing from Apr 2025 with 12 months Moratorium period. The loan is secured by hypothecation of Current Asset, Plant & Machinery and third party land & Building. Further, the loan has been guaranteed by the personal guarantee of directors.

22.10 Term loan from bank as on 31st March, 2025 amounting to Rs. 156 lakhs ( 31st March 2024: Rs. Nil) was taken from Shamrao Vithal Co-operative Bank and carries interest rate @ 9.25%. The loan is repayable in 60 (Sixty) monthly instalments commencing from Apr 2025. The loan is secured by hypothecation of Current Asset, Plant & Machinery and third party land & Building. Further, the loan has been guaranteed by the personal guarantee of directors.

22.11 Term loan from bank as on 31st March, 2025 amounting to Rs. 280.56 lakhs ( 31st March 2024: Rs. 392.78 lakhs) was taken from CITI Bank and carries interest rate @ 7.25%. The loan is repayable in 18 (Eighteen) Quarterly instalments commencing from Apr 2023 with 6 months Moratorium period. The loan is secured by hypothecation of Current Asset, Plant & Machinery and third party land & Building. Further, the loan has been guaranteed by the personal guarantee of directors.

22.12 Term loan from bank as on 31st March, 2025 amounting to Rs. 274.44 lakhs ( 31st March 2024: Rs. 384.22 lakhs) was taken from CITI Bank and carries interest rate @ 7.25%. The loan is repayable in 18 (Eighteen) Quarterly instalments commencing from May 2023 with 6 months Moratorium period. The loan is secured by hypothecation of Current Asset, Plant & Machinery and third party land & Building. Further, the loan has been guaranteed by the personal guarantee of directors.

22.13 Term loan from bank as on 31st March, 2025 amounting to Rs. 875.38 lakhs USD 10.23 lakhs ( 31st March 2024: Rs. Nil) was taken from CITI Bank and carries interest rate @ 6.83%. The loan is repayable in 20 (twenty) Quarterly instalments commencing from Aug 2024. The loan is secured by hypothecation of Current Asset, Plant & Machinery and third party land & Building. Further, the loan has been guaranteed by the personal guarantee of directors.

22.14 Term loan from bank as on 31st March, 2025 amounting to Rs. 368.89 lakhs USD 4.31 lakhs ( 31st March 2024: Rs. Nil) was taken from CITI Bank and carries interest rate @ 6.94%. The loan is repayable in 20 (twenty) Quarterly instalments commencing from Nov 2024. The loan is secured by hypothecation of Current Asset, Plant & Machinery and third party land & Building. Further, the loan has been guaranteed by the personal guarantee of directors.

22.15 Term loan from bank as on 31st March, 2025 amounting to Rs. 87.98 lakhs USD 1.03 lakhs ( 31st March 2024: Rs. Nil) was taken from CITI Bank and carries interest rate @ 6.94%. The loan is repayable in 20 (twenty) Quarterly instalments commencing from Dec 2024. The loan is secured by hypothecation of Current Asset, Plant & Machinery and third party land & Building. Further, the loan has been guaranteed by the personal guarantee of directors.

22.16 Car Loan from HDFC bank as on 31st March, 2025 amounting to Rs. Nil ( 31st March 2024: Rs. 12.65 lakhs) was taken and carries an interest rate of 8.63%. The loan is repayable in 84 (Eighty Four) monthly instalments commencing from Oct 2017. The Loan is secured by hypothecation of the said Vehicle.

22.17 Car Loan from HDFC bank as on 31st March, 2025 amounting to Rs. 0.96 lakhs ( 31st March 2024: Rs. 3.70 lakhs) was taken and carries an interest rate of 8.20%. The loan is repayable in 60 (Sixty) monthly instalments commencing from Aug 2020. The Loan is secured by hypothecation of the said Vehicle.

22.18 Commercial Vehicle Loan from HDFC bank as on 31st March, 2025 amounting to Rs. 4.23 lakhs ( 31st March 2024: Rs. 8.17 lakhs) was taken and carries an interest rate of 7.01%. The loan is repayable in 47 (fourty seven) monthly instalments commencing from May 2022. The Loan is secured by hypothecation of the said Vehicle.

22.19 Car Loan from HDFC bank as on 31st March, 2025 amounting to Rs. 7.38 lakhs ( 31st March 2024: Rs. 12.42 lakhs) was taken and carries an interest rate of 7.90%. The loan is repayable in 48 (fourty eight) monthly instalments commencing from Aug 2022. The Loan is secured by hypothecation of the said Vehicle.

22.20 Car Loan from HDFC bank as on 31st March, 2025 amounting to Rs. 24.10 lakhs ( 31st March 2024: Rs. 29.19 lakhs ) was taken and carries an interest rate of 7.90%. The loan is repayable in 60 (sixty) monthly instalments commencing from Feb 2024. The Loan is secured by hypothecation of the said Vehicle.

22.21 Car Loan from FEDERAL bank as on 31st March, 2025 amounting to Rs. 5.62 lakhs ( 31st March 2024: Rs. 6.57 lakhs) was taken and carries an interest rate of 7.90%. The loan is repayable in 72 (Seventy two) monthly instalments commencing from Nov 2023. The Loan is secured by hypothecation of the said Vehicle.

22.22 Car Loan from HDFC bank as on 31st March, 2025 amounting to Rs. 14.80 lakhs ( 31st March 2024: Rs. Nil ) was taken and carries an interest rate of 9.25%. The loan is repayable in 60 (sixty) monthly instalments commencing from Mar 2025. The Loan is secured by hypothecation of the said Vehicle.

a) Cash credit from HDFC as on 31st March, 2025 amounting to Rs. 2,349.59 lakhs ( 31st March 2024: Rs. 2,021.59 lakhs) is secured by hypothecation of Current Assets, Plant & Machinery and Factory land & building. The credit facility has been guaranteed by personal guarantee of directors. The cash credit is repayable on demand and carries interest @ 8.75% as on 31st March, 2025.

b) Cash credit from Shamrao Vithal Co-operative Bank as on 31st March, 2025 amounting to Rs. 498.67 lakhs ( 31st March 2024: Rs. 509.25 lakhs). The loan is secured by hypothecation of Current Assets, Plant & Machinery and third party Land & Building. The credit facility has been guaranteed by personal guarantee of directors. The cash credit is repayable on demand and carries interest @ 9.25% as on 31st March, 2025.

c) Cash credit from CITI Bank as on 31st March, 2025 amounting to Rs. 2,925.66 lakhs ( 31st March 2024: Rs. 2,366.94 lakhs). The loan is secured by hypothecation of Current Assets, Plant & Machinery and third party Land & Building. The credit facility has been guaranteed by personal guarantee of directors. The cash credit is repayable on demand and carries interest @ 8.25% as on 31st March, 2025.

d) Cash credit from AXIS Bank as on 31st March, 2025 amounting to Rs. 532.57 lakhs ( 31st March 2024: Rs. 401.98 lakhs). The loan is secured by hypothecation of Current Assets, Plant & Machinery and third party Land & Building. The credit facility has been guaranteed by personal guarantee of directors. The cash credit is repayable on demand and carries interest @ 8.75% as on 31st March, 2025.

e) Unsecured Cash credit in form of WCDL from Bajaj as on 31st March, 2025 amounting to Rs. 755.35 lakhs ( 31st March 2024: Rs. Nil). The facility is repayable within 120 days and carries interest @ 9.6% as on 31st March, 2025.

Note: 28.1 Details of dues to micro and small enterprises as defined under the MSMED Act, 2006 The Ministry of Micro, Small and Medium Enterprises has issued an Official Memorandum dated 26 August 2008 which recommends that the Micro and Small Enterprises should mention in their correspondence with its customers the Entrepreneurs Memorandum Number as allocated after filing of the Memorandum. Accordingly, the disclosure in respect of the amounts payable to such enterprise as at 31 March 2024 and 31 March 2023, has been made in the financial statements based on information received and available with the Company. The Company has not received any claim for interest from any supplier under the Micro, Small and Medium Enterprises Development Act, 2006 ("MSMED Act, 2006").

* It is not practicable for Company to estimate the timings of cash outflow if any in respect of the above only on receipt of Income Tax matter since judgement/decision in respect of the above matter are pending with the respective authorities.

The Company has received all its pending litigations & Proceedings and has disclosed contingent liability wherever applicable in the financial statements. The Company does not expect the outcome of those proceedings to have materially adverse effect on its financial position.

** The Company has obtained license under Export Promotion Capital Goods Scheme (EPCG) for import of capital goods on zero percent custom duty. Under the EPCG the Company needs to fulfil certain export obligations, failing which, it is liable for payment of custom duty. Export Obligations as on 31st March, 2025 is Rs. 1,605.27 lakh ( 31st March 2024: Rs. 3,895.33 lakh).

*** The Company has obtained Advance License for import of goods on zero percent custom duty. Under the Advance Licence scheme the Company needs to fulfil certain export obligations, failing which, it is liable for payment of custom duty saved on import. Export Obligations as on 31st March, 2025 is Rs. 254.27 lakh ( 31st March 2024: Rs. 72.65 lakh).

The Board at its meeting held on 6th August, 2024 approved sub division of equity shares of the company with existing face value of Rs. 10 each fully paid up into 2 each fully paid shares of Rs. 5 each consequential impact of the same is provided in EPS and it is accordingly restated.

Note: 46 Disclosure relating to employee benefits as per Ind AS 19 ''Employee Benefits''

(i) Disclosures for defined contribution plan

The Company has defined contribution plan - Provident Fund. The obligation of the Company is limited to the amount contributed and it has no further contractual obligation. Following is the details regarding Company''s contributions made during the year:

(ii) Disclosures for defined benefit plans

(a) Defined benefit obligations - Gratuity (funded)

The Company has a defined benefit gratuity plan for its employees. The gratuity plan is governed by the Payment of Gratuity Act, 1972. Under the Act, every employee who has completed five years of service is entitled to specific benefit. The level of benefits provided depends on the employee''s length of service and salary at retirement age. Every employee who has completed five years or more of service gets a gratuity on departure at 15 days salary (last drawn) for each completed year of service as per the provisions of the Payment of Gratuity Act, 1972. The scheme is funded.

Rajshree Polypack Limited formulated Employee Stock Option Plan viz. "Rajshree Polypack Limited - Employee Stock Option Plan - 2022" (the "Plan") for the benefit of employees of the Company. The shareholders vide its special resolution dated August 4, 2022 passed through postal ballots approved the Plan. Under the said plan the Nomination and Remuneration Committee is empowered to grant 5,63,000 Employee Stock Options in form of equity shares linked to the completion of a minimum period of continued employment to the eligible employees of the Company, monitored and supervised by the Board of Directors. The employees can purchase equity shares by exercising the options as vested at the price specified in the grant. Once vested, the options remain exercisable for a period of 2 years.

Options are granted under the plan for no consideration and carry no dividend or voting rights. When exercisable, each option is convertible into 1 number of equity share. The exercise price of the share options is equal to the Face value of the underlying shares on the date of grant. There are no cash settlement alternatives for the employees.

The Committee granted 16,500 options on February 6, 2023, 3,900 options on October 31,2023, each stock option is exercisable into one equity share of face value of Rs. 10 each. Further The Committee granted 9500 options on February 5, 2025, each stock option is exercisable into one equity share of face value of Rs. 5 each.

The Company has made bonus issue of shares in the ratio of 2:1 during previous year, and accordingly outstanding employee stock options have been proportionately adjusted. As a result, the 20,400 outstanding options have been adjusted to reflect the bonus issue as follows:

Pre-bonus options: 20,400

Bonus shares entitlement (2:1): 40,800

Total adjusted options post-bonus: 61,200

Further, The Board at its meeting held on 6th August, 2024 approved sub division of equity shares of the company with existing face value of Rs. 10 each fully paid up into 2 each fully paid shares of Rs. 5 each. As a result 61,200 outstanding options have been adjusted to reflect the sub division as follows:

Options before sub division: 61,200

New Number of share on account of Sub division: 61,200

Total number of options after subdivision: 1,22,400

(a) Primary Segments - Business Segment :

The Company is mainly engaged in the business of manufacturing "Thermoformed Packaging Products ". All other activities of the Company revolve around the main business and as such, there are no business segments that require reporting under IND AS 108 - "Segment Reporting".

Note: 50 Other Statutory Information

(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 does not have any transactions with companies struck off u/s 248 of Companies Act, 2013.

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

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

(v) 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

(vi) 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,

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

(viii) The Company has used the borrowings from banks for the purpose for which it was obtained.

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

(x) The Company has complied with no of layers under clause 87 of section 2 of the Companies Act, 2013 read with Companies (Restriction on Number of Layers), Rules, 2017 .

1. The Quarterly statements were prepared and filed before the completion of all financial statement closure activities including IND AS related adjustment/reclassification, as applicable, which led to certain differences between the final books of accounts and the quarterly statements which were based on provisional books of accounts. Further there are certain items which are included/excluded erroneously/inadvertently in quarterly statements filed with the bank.

Note: 51 The Code on Social Security, 2020 (''Code'') relating to employee benefits during employment and post-employment benefits received Presidential assent in September 2020. The Code has been published in the Gazette of India. However, the date on which the Code will come into effect has not been notified and the final rules/ interpretation have not yet been issued. The Company will assess the impact of the Code when it comes into effect and will record any related impact in the period the Code becomes effective.

(b) Fair valuation techniques

The Company maintains policies and procedures to value financial assets or financial liabilities using the best and most relevant data available. The fair values of the financial assets and liabilities are included at the amount 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 management assessed that fair value of Trade receivables (net), Cash and cash equivalents, Other bank balances, Loans -current, Other financial asset - current , Borrowings - Current, Trade payables and Other financial liabilities - current approximate their carrying amounts largely due to the short-term maturities of these instruments.

The amortized cost using effective interest rate (EIR) of non-current financial assets consisting of security deposits are not significantly different from the carrying amount. The impact of fair value on non-current borrowing, non-current security deposits and non-current term deposits is not material and therefore not considered for above disclosure.

Financial assets and financial liabilities are measured at fair value in the financial statement and are grouped into three levels of a fair value hierarchy. The three Levels are defined based on the observability of significant inputs to the measurement, as follows:

Level 1 : Quoted (unadjusted) prices in active markets for identical assets or liabilities.

Level 2 : Other techniques for which all inputs which have a significant effect on the recorded fair value are observable, either directly or indirectly.

Level 3 : Techniques which use inputs that have a significant effect on the recorded fair value that are not based on observable market data.

Note: 55 Risk management framework

The Company''s financial risk management is an integral part of how to plan and execute its business strategies. The Company''s financial risk management policy is set by the Board. The Company is exposed to various financial risks. These risks are categorised into market risk, credit risk and liquidity risk.

The Company has exposure to the following risks arising from financial instruments:

â¢ Credit risk;

â¢ Liquidity risk;

â¢ Market risk

(a) Credit risk :

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

Trade receivable

Customer credit risk is managed by the business unit subject to the Company''s established policy, procedures and control relating to customer credit risk management. To manage trade receivable, the Company periodically assesses the financial reliability of customers, taking into account the financial conditions, economic trends, analysis of historical bad debts and aging of such receivables. For receivables, as a practical expedient, the Company computes expected credit loss allowance based on a provision matrix. The provision matrix is prepared based on historically observed default rates over the expected life of trade receivables and is adjusted for forward-looking estimates.

The maximum exposure to credit risk at the reporting date is the carrying value of each class of financial assets disclosed in Note 54. The Company does not hold collateral as security.

Financial instruments and cash deposits

Credit risk from balances with banks and financial institutions is managed by the management in accordance with the Company''s policy. Counterparty credit limits are reviewed by the management on an annual basis, and may be updated throughout the year / period. The limits are set to minimise the concentration of risks and therefore mitigate financial loss through counterparty''s potential failure to make payments.

(b) Liquidity risk :

Liquidity risk is the risk that the Company will encounter difficulty in meeting the obligations associated with its financial liabilities that are settled by delivering cash or another financial asset. The Company''s approach to managing liquidity is to ensure, as far as possible, that it will have sufficient liquidity to meet its liabilities when they are due, under both normal and stressed conditions, without incurring unacceptable losses or risking damage to Company''s reputation.

Management monitors rolling forecasts of the Company''s liquidity position and cash and cash equivalents on the basis of expected cash flows to ensure it has sufficient cash to meet operational needs. Such forecasting takes into consideration the Company''s debt financing plans, covenant compliance and compliance with internal statement of financial position ratio targets.

Market risk is the risk that changes in market prices - such as foreign exchange rates, interest rates and equity prices - will affect the Company''s income or the value of its holdings of financial instruments. Market risk is attributable to all market risk sensitive financial instruments including foreign currency receivables and payables and long term debt. The Company is exposed to market risk primarily related to foreign exchange rate risk, interest rate risk and the market value of certain commodities. Thus, its exposure to market risk is a function of investing and borrowing activities and revenue generating and operating activities. The objective of market risk management is to avoid excessive exposure in revenues and costs.

(i) Interest Rate Risk

Interest rate risk can be either fair value interest rate risk or cash flow interest rate risk. Fair value interest rate risk is the risk of changes in fair values of fixed interest bearing investments because of fluctuations in the interest rates. Cash flow interest rate risk is the risk that the future cash flows of floating interest bearing investments will fluctuate because of fluctuations in the interest rates.

Fair value sensitivity analysis for fixed-rate instruments

The Company does not account for any fixed-rate financial assets or financial liabilities at fair value through profit or loss. Therefore, a change in interest rates at the reporting date would not affect profit or loss.

Fair value sensitivity analysis for floating-rate instruments

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

Note: 56 Capital risk management

The Company manages its capital to ensure that it will be able to continue as a going concern so, that they can continue to provide returns for shareholders and benefits for other stakeholders and maintain an optimal capital structure to reduce cost of capital. The Company manages its capital structure and make adjustments to, in light of changes in economic conditions, and the risk characteristics of underlying assets. In order to achieve this overall objective, the Company''s capital management, amongst other things, aims to ensure that it meets financial covenants attached to the borrowings that define the capital structure requirements.

Consistent with others in the industry, the Company monitors capital on the basis of the gearing ratio. The ratio is calculated as net debt divided by equity. Net debt is calculated as total borrowing (including current and non-current terms loans less cash and bank balances as shown in the balance sheet).

Note: 57 Investment in Securities, Loans to Related Parties

Disclosures pursuant to Regulation 34(3) of Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 and Section 186 of the Companies Act, 2013

Note: 58 Previous year figures have been rearranged and reclassed wherever considered necessary

Mar 31, 2024

2.11 Provisions and contingent liabilities

Provisions are recognized when there is a present obligation as a result of a past event, it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and there is a reliable estimate of the amount of the obligation. Provisions are measured at the best estimate of the expenditure required to settle the present obligation at the Balance sheet date.

If the effect of the time value of money is material, provisions are discounted using a current pre-tax rate that reflects, when appropriate, the risks specific to the liability. When discounting is used, the increase in the provision due to the passage of time is recognized as a finance cost.

The Company records a provision for decommissioning costs. Decommissioning costs are provided at the present value of expected costs to settle the obligation using estimated cash flows and are recognized as part of the cost of the particular asset. The cash flows are discounted at a current pre-tax rate that reflects the risks specific to the decommissioning liability. The unwinding of the discount is expensed as incurred and recognized in the statement of profit and loss as a finance cost. The estimated future costs of decommissioning are reviewed annually and adjusted as appropriate. Changes in the estimated future costs or in the discount rate applied are added to or deducted from the cost of the asset.

If the Company has a contract that is onerous, the present obligation under the contract is recognised and measured as a provision. However, before a separate provision for an onerous contract is established, the Company recognises any impairment loss that has occurred on assets dedicated to that contract.

An onerous contract is a contract under which the unavoidable costs (i.e., the costs that the Company cannot avoid because it has the contract) of meeting the obligations under the contract exceed the economic benefits expected to be received under it. The unavoidable costs under a contract reflect the least net cost of exiting from the contract, which is the lower of the cost of fulfilling it and any compensation or penalties arising from failure to fulfil it. The cost of fulfilling a contract comprises the costs that relate directly to the contract (i.e., both incremental costs and an allocation of costs directly related to contract activities).

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 Company 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 or a reliable estimate of the amount cannot be made.

2.12 Cash and cash equivalents

Cash and cash equivalent in the balance sheet comprise cash at banks, cash on hand and short-term deposits net of bank overdraft with an original maturity of three months or less, which are subject to an insignificant risk of changes in value.

For the purposes of the cash flow statement, cash and cash equivalents include cash on hand, cash in banks and shortterm deposits net of bank overdraft.

2.13 Financial instruments

A financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability or equity instrument of another entity.

(a) Financial assets

(i) Initial recognition and measurement

A financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability or equity instrument of another entity. Financial assets and financial liabilities are initially measured at fair value. Transaction costs that are directly attributable to the acquisition or issue of financial assets and financial liabilities (other than financial assets and financial liabilities at fair value through profit or loss) are added to or deducted from the fair value of the financial assets or financial liabilities, as appropriate, on initial recognition. Transaction costs directly attributable to the acquisition of financial assets or financial liabilities at fair value through profit or loss are recognised immediately in profit or loss.

(ii) Subsequent measurement

For purposes of subsequent measurement, financial assets are classified in following categories:

a) at amortized cost; or

b) at fair value through other comprehensive income; or

c) at fair value through profit or loss.

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

Amortized cost: Assets that are held for collection of contractual cash flows where those cash flows represent solely payments of principal and interest are measured at amortized cost. Interest income from these financial assets is included in finance income using the effective interest rate method (EIR).

Fair value through other comprehensive income (FVOCI): Assets that are held for collection of contractual cash flows and for selling the financial assets, where the assets'' cash flows represent solely payments of principal and interest, are measured at fair value through other comprehensive income (FVOCI). Movements in the carrying amount are taken through OCI, except for the recognition of impairment gains or losses, interest revenue and foreign exchange gains and losses which are recognized in Statement of Profit and Loss. When the financial asset is derecognized, the cumulative gain or loss previously recognized in OCI is reclassified from equity to Statement of Profit and Loss and recognized in other gains/ (losses). Interest income from these financial assets is included in other income using the effective interest rate method.

Fair value through profit or loss (FVTPL): Assets that do not meet the criteria for amortized cost or FVOCI are measured at fair value through profit or loss. Interest income from these financial assets is included in other income.

Equity instruments:

All equity investments in scope of Ind AS 109 are measured at fair value. Equity instruments which are held for trading and contingent consideration recognised by an acquirer in a business combination to which Ind AS103 applies are classified as at FVTPL. For all other equity instruments, the Company may make an irrevocable election to present in other comprehensive income subsequent changes in the fair value. The Company makes such election on an instrument- by-instrument basis. The classification is made on initial recognition and is irrevocable.

If the Company decides to classify an equity instrument as at FVTOCI, then all fair value changes on the instrument, excluding dividends, are recognized in the OCI. There is no recycling of the amounts from OCI to P&L, even on sale of investment. However, the Company may transfer the cumulative gain or loss within equity.

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

(iii) Impairment of financial assets

In accordance with Ind AS 109, Financial Instruments, the Company applies expected credit loss (ECL) model for measurement and recognition of impairment loss on financial assets that are measured at amortized cost and FVOCI.

For recognition of impairment loss on financial assets and risk exposure, the Company determines that whether there has been a significant increase in the credit risk since initial recognition. If credit risk has not increased significantly, 12-month ECL

is used to provide for impairment loss. However, if credit risk has increased significantly, lifetime ECL is used. If in subsequent years, credit quality of the instrument improves such that there is no longer a significant increase in credit risk since initial recognition, then the entity reverts to recognizing impairment loss allowance based on 12 months ECL.

Life time ECLs are the expected credit losses resulting from all possible default events over the expected life of a financial instrument. The 12 months ECL is a portion of the lifetime ECL which results from default events that are possible within 12 months after the year end.

ECL is the difference between all contractual cash flows that are due to the Company in accordance with the contract and all the cash flows that the entity expects to receive (i.e. all shortfalls), discounted at the original EIR. When estimating the cash flows, an entity is required to consider all contractual terms of the financial instrument (including prepayment, extension etc.) over the expected life of the financial instrument. However, in rare cases when the expected life of the financial instrument cannot be estimated reliably, then the entity is required to use the remaining contractual term of the financial instrument.

In general, it is presumed that credit risk has significantly increased since initial recognition if the payment is more than 30 days past due.

ECL impairment loss allowance (or reversal) recognized during the year is recognized as income/expense in the statement of profit and loss. In balance sheet ECL for financial assets measured at amortized cost is presented as an allowance, i.e. as an integral part of the measurement of those assets in the balance sheet. The allowance reduces the net carrying amount. Until the asset meets write off criteria, the Company does not reduce impairment allowance from the gross carrying amount.

(iv) Derecognition of financial assets

A financial asset is derecognized only when

a) the rights to receive cash flows from the financial asset is transferred or

b) retains the contractual rights to receive the cash flows of the financial asset, but assumes a contractual obligation to pay the cash flows to one or more recipients.

Where the financial asset is transferred then in that case financial asset is derecognized only if substantially all risks and rewards of ownership of the financial asset is transferred. Where the entity has not transferred substantially all risks and rewards of ownership of the financial asset, the financial asset is not derecognized.

(b) Financial liabilities

(i) Initial recognition and measurement

Financial liabilities are classified, at initial recognition, as financial liabilities at fair value through profit or loss and at amortized cost, as appropriate.

All financial liabilities are recognized initially at fair value and, in the case of borrowings and payables, net of directly attributable transaction costs.

(ii) Subsequent measurement

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

Financial liabilities at fair value through profit or loss

Financial liabilities at fair value through profit or loss include financial liabilities held for trading and financial liabilities designated upon initial recognition as at fair value through profit or loss. Separated embedded derivatives are also classified as held for trading unless they are designated as effective hedging instruments. Gains or losses on liabilities held for trading are recognized in the Statement of Profit and Loss.

Borrowings

After initial recognition, interest-bearing loans and borrowings are subsequently measured at amortized cost using the EIR method. Gains and losses are recognized in Statement of Profit and 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.

(iii) 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 derecognition 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 and Loss as finance costs.

Financial assets and liabilities are offset and the net amount is reported in the balance sheet where there is a legally enforceable right to offset the recognized amounts and there is an intention to settle on a net basis or realize the asset and settle the liability 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.

2.14 Employee Benefits

(a) Short-term obligations

Liabilities for wages and salaries, including nonmonetary benefits that are expected to be settled wholly within 12 months after the end of the year in which the employees render the related service are recognized in respect of employees'' services up to the end of the year and are measured at the amounts expected to be paid when the liabilities are settled. The liabilities are presented as current employee benefit obligations in the balance sheet.

(b) Other long-term employee benefit obligations

(i) Defined contribution plan

Provident Fund: Contribution towards provident fund is made to the regulatory authorities, where the Company has no further obligations. Such benefits are classified as Defined Contribution Schemes as the Company does not carry any further obligations, apart from the contributions made on a monthly basis which are charged to the Statement of Profit and Loss.

(ii) Defined benefit plans

Gratuity: The Company provides for gratuity, a defined benefit plan (the ''Gratuity Plan") covering eligible employees in accordance with the Payment of Gratuity Act, 1972. The Gratuity Plan provides a lump sum payment to vested employees at retirement, death, incapacitation or termination of employment, of an amount based on the respective employee''s salary. The Company''s liability is actuarially determined (using the Projected Unit Credit method) at the end of each year. Actuarial losses/gains are recognized in the other comprehensive income in the year in which they arise.

Compensated Absences: Accumulated

compensated absences, which are expected to be availed within 12 months from the end of the year are treated as short term employee benefits. The obligation towards the same is measured at the expected cost of accumulating compensated absences as the additional amount expected to be paid as a result of the unused entitlement as at the year end.

Accumulated compensated absences, which are expected to be availed beyond 12 months from the end of the year end are treated as other long term employee benefits. The Company''s liability is actuarially determined (using the Projected Unit Credit method) at the end of each year. Actuarial losses/gains are recognized in the statement of profit and loss in the year in which they arise.

Leaves under define benefit plans can''t be encashed.

(c) Share-based payments

Employees (including senior executives) of the Company receive remuneration in the form of share-based payments, whereby employees render services as consideration for equity instruments (equity-settled transactions). The cost of equity-settled transactions is determined by the fair value at the date when the grant is made using an appropriate valuation model.

That cost is recognised, together with a corresponding increase in share-based payment (SBP) reserves in equity, over the period in which the performance and/ or service conditions are fulfilled in employee benefits expense. The cumulative expense recognised for equity-settled transactions at each reporting date until the vesting date reflects the extent to which the vesting period has expired and the Companies'' best estimate of the number of equity instruments that will ultimately vest. The statement of profit and loss expense or credit for a period represents the movement in cumulative expense recognised as at the beginning and end of that period and is recognised in employee benefits expense.

No expense is recognised for awards that do not ultimately vest because non-market performance and/or service conditions have not been met. Where awards include a market or non-vesting condition, the transactions are treated as vested irrespective of whether the market or non-vesting condition is satisfied, provided that all other performance and/or service conditions are satisfied.

The dilutive effect of outstanding options is reflected as additional share dilution in the computation of diluted earnings per share.

2.15 Equity share capital

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

2.16 Provision for Dividend

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

2.17 Government grants

Government grants are recognised where there is reasonable assurance that the grant will be received and all attached conditions will be complied with. When the grant or subsidy relates to revenue, it is recognized as income on a systematic basis in the statement of profit and loss over the periods necessary to match them with the related costs, which they are intended to compensate. Where the grant relates to an asset, it is recognized as deferred income and is allocated to statement of profit and loss over the periods and in the proportions in which depreciation on those assets is charged.

2.18 Borrowing cost

Borrowing costs that are directly attributable to the acquisition, construction or production of a qualifying

asset are capitalized as part of the cost of the respective asset till such time the asset is ready for its intended use or sale. A qualifying asset is an asset which necessarily takes a substantial period of time to get ready for its intended use or sale. Ancillary cost of borrowings in respect of loans not disbursed are carried forward and accounted as borrowing cost in the year of disbursement of loan. All other borrowing costs are expensed in the period in which they occur. Borrowing costs consist of interest expenses calculated as per effective interest method, exchange difference arising from foreign currency borrowings to the extent they are treated as an adjustment to the borrowing cost and other costs that an entity incurs in connection with the borrowing of funds.

2.19 Segment reporting

Ind AS 108 establishes standards, for the way that business enterprises report information about operating segments and related disclosures about products, services and geographic areas, and major customers.

The primary reporting of the Company has been performed on the basis of business segments. Based on the "management approach" as defined in Ind AS 108, the Chief Operating Decision Maker (CODM) evaluates the Company''s performance and allocates resources to manufacture of "Thermoformed Packaging Products" only hence it has been considered as the only reportable business segment and hence no separate financial disclosures provided in respect of its single business segment.

2.20 Statement of Cash Flows

Cash flows are reported using the indirect method, where by net profit before tax is adjusted for the effects of transactions of a non-cash nature, any deferrals or accruals of past or future operating cash receipts or payments and item of income or expenses associated with investing or financing cash flows. The cash flows from operating, investing and financing activities are segregated.

2.21 Earnings Per Share

"Basic earnings per share is calculated by dividing the net profit or loss for the year attributable to equity shareholders by the weighted average number of equity shares outstanding during the year. Earnings considered in ascertaining the Company''s earnings per share is the net profit or loss for the year after deducting preference dividends and any attributable tax thereto for the year. The weighted average number of equity shares outstanding during the year and for all the years presented is adjusted for events, such as bonus shares, other than the conversion of potential equity shares that have changed the number of equity shares outstanding, without a corresponding change in resources.

For the purpose of calculating diluted earnings per share, the net profit or loss for the year attributable to equity shareholders and the weighted average number of shares outstanding during the year is adjusted for the effects of all dilutive potential equity shares."

2.22 Rounding off amounts

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

a) Term loan from bank as on 31st March, 2024 amounting to Rs. 24.07 lakhs/- ( 31st March 2023: Rs. 49.54 lakhs/-) was taken from HDFC and carries interest rate @ 9.25%. The loan is repayable in 36 (Thirty Six) monthly instalments commencing from February 2022 with 12 months Moratorium period. The loan is covered by 100% guarantee from NCGTC (National Credit Guarantee Trustee Company Ltd (Ministry of Finance, Government of India). Further, the loan has been guaranteed by the personal guarantee of directors.

b) Term loan from bank as on 31st March, 2024 amounting to Rs. 36.95 lakhs/- ( 31st March 2023: Rs. 66.74 lakhs/-) was taken from HDFC and carries interest rate @ 9.25% The loan is repayable in 36 (Thirty Six) monthly instalments commencing from May 2022 with 12 months Moratorium period. The loan is covered by 100% guarantee from NCGTC (National Credit Guarantee Trustee Company Ltd (Ministry of Finance, Government of India). Further, the loan has been guaranteed by the personal guarantee of directors.

c) Term loan from bank as on 31st March, 2024 amounting to Rs. 146.18 lakhs/- ( 31st March 2023: Rs. 153.50 lakhs/-) was taken from HDFC and carries interest rate @ 9.25%. The loan is repayable in 36 (Thirty six) monthly instalments commencing from February 2024 with 24 months Moratorium period. The loan is covered by 100% guarantee from NCGTC (National Credit Guarantee Trustee Company Ltd (Ministry of Finance, Government of India). Further, the loan has been guaranteed by the personal guarantee of directors.

d) Term loan from bank as on 31st March, 2024 amounting to Rs. 254.36 lakhs/- ( 31st March 2023: Rs. 297.67 lakhs/-) was taken from Shamrao Vithal Co-operative Bank and carries interest rate @ 9.80%. The loan is repayable in 84 (Eighty four) monthly instalments commencing from Dec 2021 with 6 months Moratorium period. The loan is secured by hypothecation of Current Asset, Plant & Machinery and third party land & Building. Further, the loan has been guaranteed by the personal guarantee of directors.

e) Term loan from bank as on 31st March, 2024 amounting to Rs. 336.95 lakhs/- ( 31st March 2023: Rs. 393.08 lakhs/-) was taken from Shamrao Vithal Co-operative Bank and carries interest rate @ 9.80%. The loan is repayable in 84 (Eighty four) monthly instalments commencing from Jan 2022 with 6 months Moratorium period. The loan is secured by hypothecation of Current Asset, Plant & Machinery and third party land & Building. Further, the loan has been guaranteed by the personal guarantee of directors.

f) Term loan from bank as on 31st March, 2024 amounting to Rs. 123.02 lakhs/- ( 31st March 2023: Rs. 151.73 lakhs/-) was taken from Shamrao Vithal Co-operative Bank and carries interest rate @ 9.80%. The loan is repayable in 84 (Eighty four) monthly instalments commencing from Jan 2022. The loan is secured by hypothecation of Current Asset, Plant & Machinery and third party land & Building. Further, the loan has been guaranteed by the personal guarantee of directors.

g) Term loan from bank as on 31st March, 2024 amounting to Rs. 267.87 lakhs/- ( 31st March 2023: Rs. 306.65 lakhs /-) was taken from Shamrao Vithal Co-operative Bank and carries interest rate @ 9.80%. The loan is repayable in 84 (Eighty four) monthly instalments commencing from Aug 2022 with 6 months Moratorium period. The loan is secured by hypothecation of Current Asset, Plant & Machinery and third party land & Building. Further, the loan has been guaranteed by the personal guarantee of directors.

h) Term loan from bank as on 31st March, 2024 amounting to Rs. 7.32 lakhs/- ( 31st March 2023: Rs. 20.36 lakhs/-) was taken from Shamrao Vithal Co-operative Bank and carries interest rate @ 9.80%. The loan is repayable in 84 (Eighty four) monthly instalments commencing from Jul 2022 with 6 months Moratorium period. The loan is secured by hypothecation of Current Asset, Plant & Machinery and third party land & Building. Further, the loan has been guaranteed by the personal guarantee of directors.

i) Term loan from bank as on 31st March, 2024 amounting to Rs. 392.78 lakhs/- ( 31st March 2023: Rs. 505.00 lakhs/-) was taken from CITI Bank and carries interest rate @ 9%. The loan is repayable in 18 (Eighteen) Quarterly instalments commencing from Apr 2023 with 6 months Moratorium period. The loan is secured by hypothecation of Current Asset, Plant & Machinery and third party land & Building. Further, the loan has been guaranteed by the personal guarantee of directors.

j) Term loan from bank as on 31st March, 2024 amounting to Rs. 384.22 lakhs/- ( 31st March 2023: Rs. 494.00 lakhs/-) was taken from CITI Bank and carries interest rate @ 9%. The loan is repayable in 18 (Eighteen) Quarterly instalments commencing from May 2023 with 6 months Moratorium period. The loan is secured by hypothecation of Current Asset, Plant & Machinery and third party land & Building. Further, the loan has been guaranteed by the personal guarantee of directors.

k) Car Loan from HDFC bank as on 31st March, 2024 amounting to Rs. 12.65 lakhs/- ( 31st March 2023: Rs. 27.08/- lakhs) was taken and carries an interest rate of 8.63%. The loan is repayable in 84 (Eighty Four) monthly instalments commencing from Oct 2017. The Loan is secured by hypothecation of the said Vehicle.

l) Car Loan from HDFC bank as on 31st March, 2024 amounting to Rs. 3.70 lakhs/- ( 31st March 2023: Rs. 6.22/- lakhs) was taken and carries an interest rate of 8.20%. The loan is repayable in 60 (Sixty) monthly instalments commencing from Aug 2020. The Loan is secured by hypothecation of the said Vehicle.

m) Commercial Vehicle Loan from HDFC bank as on 31st March, 2024 amounting to Rs. 8.17 lakhs/- ( 31st March 2023: Rs. 11.85 lakhs/-) was taken and carries an interest rate of 7.01%. The loan is repayable in 47 (fourty seven) monthly instalments commencing from May 2022. The Loan is secured by hypothecation of the said Vehicle.

n) Car Loan from HDFC bank as on 31st March, 2024 amounting to Rs. 12.42 lakhs/- ( 31st March 2023: Rs. 17.09 lakhs/-) was taken and carries an interest rate of 7.90%. The loan is repayable in 48 (fourty eight) monthly instalments commencing from Aug 2022. The Loan is secured by hypothecation of the said Vehicle.

o) Car Loan from HDFC bank as on 31st March, 2024 amounting to Rs. 29.19 lakhs/- ( 31st March 2023: Rs. Nil ) was taken and carries an interest rate of 7.90%. The loan is repayable in 60 (sixty) monthly instalments commencing from Feb 2024. The Loan is secured by hypothecation of the said Vehicle.

p) Car Loan from FEDERAL bank as on 31st March, 2024 amounting to Rs. 6.57 lakhs/- ( 31st March 2023: Rs. Nil) was taken and carries an interest rate of 7.90%. The loan is repayable in 72 (Seventy two) monthly instalments commencing from Nov 2023. The Loan is secured by hypothecation of the said Vehicle.

a) Cash credit from HDFC as on 31st March, 2024 amounting to Rs. 2,021.59 lakhs/- ( 31st March 2023: Rs. 1,971.12/- lakhs) is secured by hypothecation of Current Assets, Plant & Machinery and Factory land & building. The credit facility has been guaranteed by personal guarantee of directors. The cash credit is repayable on demand and carries interest @ 9.94% as on 31st March, 2024.

b) Cash credit from Shamrao Vithal Co-operative Bank as on 31st March, 2024 amounting to Rs. 509.25 lakhs/- ( 31st March 2023: Rs. 385.57 /- lakhs). The loan is secured by hypothecation of Current Assets, Plant & Machinery and third party Land & Building. The credit facility has been guaranteed by personal guarantee of directors. The cash credit is repayable on demand and carries interest @ 9.80% as on 31st March, 2024.

c) Cash credit from CITI Bank as on 31st March, 2024 amounting to Rs. 2,366.94 lakhs/- ( 31st March 2023: Rs. 36.90/- lakhs). The loan is secured by hypothecation of Current Assets, Plant & Machinery and third party Land & Building. The credit facility has been guaranteed by personal guarantee of directors. The cash credit is repayable on demand and carries interest @ 9% as on 31st March, 2024.

d) Cash credit in form of WCDL from CITI Bank as on 31st March, 2024 amounting to Rs. Nil/- lakhs ( 31st March 2023: Rs. 2,500 lakhs/-) is secured by hypothecation of Current Asset, Plant & Machinery and third party Land & Building. The credit facility has been guaranteed by the personal guarantee of directors. The facility is repayable on demand and carries interest @ 8.25% as on 31st March, 2023.

e) Cash credit from AXIS Bank as on 31st March, 2024 amounting to Rs. 401.98 lakhs/- ( 31st March 2023: Rs. Nil/- lakhs). The loan is secured by hypothecation of Current Assets, Plant & Machinery and third party Land & Building. The credit facility has been guaranteed by personal guarantee of directors. The cash credit is repayable on demand and carries interest @ 8.75% as on 31st March, 2024.

Note: 49 Other Statutory Information

(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 does not have any transactions with companies struck off u/s 248 of Companies Act, 2013.

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

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

(v) 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

(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,

(viii) The Company has used the borrowings from banks for the purpose for which it was obtained.

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

(b) Fair valuation techniques

Level 1 : Quoted (unadjusted) prices in active markets for identical assets or liabilities.

Level 2 : Other techniques for which all inputs which have a significant effect on the recorded fair value are observable, either directly or indirectly.

Level 3 : Techniques which use inputs that have a significant effect on the recorded fair value that are not based on observable market data.

Note: 54 Risk management framework

The Company has exposure to the following risks arising from financial instruments:

â¢ Credit risk;

â¢ Liquidity risk;

â¢ Market risk

(a) Credit risk :

Trade receivable

The maximum exposure to credit risk at the reporting date is the carrying value of each class of financial assets disclosed in Note 51. The Company does not hold collateral as security.

Financial instruments and cash deposits

(b) Liquidity risk :

(c) Market risk

(i) Interest Rate Risk

Note: 55 Capital risk management

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

M S K A & Associates Rajshree Polypack Limited

Chartered Accountants CIN : L25209MH2011PLC223089

Firm Registration No.: 105047W

Ramswaroop Thard Naresh Thard

_{Rajesh Murarka} Chairman & MD Jt. Managing Director

_Partner DIN : 02835505 DIN : 03581790

Membership No. 120521

Mitali Shah Sunil Sharma

Company Secretary & Chief Financial Officer

Compliance Officer

Place: Thane Place: Thane

Date : May 28th, 2024 Date : May 28th, 2024

Mar 31, 2023

*The Board of Director vide their meeting dated April 19, 2022 have provided an in principal approval to acquire 50.1% stake in Olive Ecopak Private Limited for Co-manufacturing, sale and distribution of paper packaging products. The Company executed a signed term sheet with the JV Partner on April 19, 2022 to consummate this transaction. Olive Ecopak Private Limited allotted shares on May 3, 2022 to the Company and JV partner..

The company has not granted any loan or advance in nature of loan to promoter, directors and KMP either severally or jointly with any other person.

Represent Inter corporate loan given to Olive Ecopack private limited includes accured interest ''31.11 lakhs/- (March 31, 2022 ''Nil) Based on the signed Loan agreements & term sheet. The company advanced the unsecured loan of ''700 lakhs/- to Olive Ecopak private limited which is interest bearing.

a) FDR amounting to '' Nil (March 31, 2022 ''39.43 lakhs/-) have been pledged with the bank towards the Company''s Letter of Credit and FDR amounting to '' Nil (March 31,2022 ''31.41 lakhs/-) are pledged with Electricity department.

b) Fixed Deposits amounting to ''34.96 lakhs/- (March 31,2022 ''34.76 lakhs/-) is as lien against facilities taken from HDFC Bank.

c) Balance with Bank in current account includes uncliamed Dividend of ''0.48 lakhs /- (March 31, 2022 ''0.44 lakhs/-).

Note: 19.1 Terms/ rights attached to equity shares :

i) The Company has only one class of equity shares having at par value of ''10 per share. Each holder of equity share is entitled to one vote per equivalent fully paid up equity share.

iii) The Company declare and pays dividend in Indian Rupees. Each equity share has the same right of dividend.

iv) The Board of Directors have recommended a final dividend of ''0.5 per equity share (face value ''10) for the year ended March 31,2023 in its meeting held on May 15, 2023 subject to the approval of the shareholders at the 12^th annual general meeting. On Approval, the total dividend outgo is expected to be ''57.25 lakhs/- based on the outstanding shares as on March 31,2023.

Nature and Purpose of Reserves

(a) Securities Premium Reserve

Securities premium is used to record the premium received on issue of shares. The reserve is utilised in accordance with the provisions of the Companies Act, 2013.

(b) Retained earnings

The company has established equity - settled share based payment plan for certain categories of employees of the company. The balance is employee share options account represent the expenses recorded pursuant to the aforsaid schemes for which the options are not yet vested or excerised (Refer Note No 46).

a) Term loan from bank as on 31^st March, 2023 amounting to ''49.54 lakhs/- ( 31^st March 2022: ''73.03 lakhs/-) was taken from HDFC and carries interest rate @ 9.25%. The loan is repayable in 36 (Thirty Six) monthly instalments commencing from February 2022 with 12 months Moratorium period. The loan is covered by 100% guarantee from NCGTC (National Credit Guarantee Trustee Company Ltd (Ministry of Finance, Government of India). Further, the loan has been guaranteed by the personal guarantee of directors.

b) Term loan from bank as on 31^st March, 2023 amounting to ''66.74 lakhs/- ( 31^st March 2022: ''92.00 lakhs/-) was taken from HDFC and carries interest rate @ 9.25% The loan is repayable in 36 (Thirty Six) monthly instalments commencing from May 2022 with 12 months Moratorium period. The loan is covered by 100% guarantee from NCGTC (National Credit Guarantee Trustee Company Ltd (Ministry of Finance, Government of India). Further, the loan has been guaranteed by the personal guarantee of directors.

c) Term loan from bank as on 31^st March, 2023 amounting to ''153.50 lakhs/- ( 31^st March 2022: ''153.50 lakhs/-) was taken from HDFC and carries interest rate @ 9.25% The loan is repayable in 36 (Thirty six) monthly instalments commencing from February 2024 with 24 months Moratorium period. The loan is covered by 100% guarantee from NCGTC (National Credit Guarantee Trustee Company Ltd (Ministry of Finance, Government of India). Further, the loan has been guaranteed by the personal guarantee of directors.

d) Term loan from bank as on 31^st March, 2023 amounting to ''297.67 lakhs/- ( 31^st March 2022: ''337.25 lakhs/-) was taken from Shamrao Vithal Co-operative Bank and carries interest rate @ 9.05%. The loan is repayable in 84 (Eighty four) monthly instalments commencing from Dec 2021 with 6 months Moratorium period. The loan is secured by hypothecation of Current Asset, Plant & Machinery and third party land & Building. Further, the loan has been guaranteed by the personal guarantee of directors.

e) Term loan from bank as on 31^st March, 2023 amounting to ''393.08 lakhs/- ( 31^st March 2022: ''444.23 lakhs/-) was taken from Shamrao Vithal Co-operative Bank and carries interest rate @ 9.05%. The loan is repayable in 84 (Eighty four) monthly instalments commencing from Jan 2022 with 6 months Moratorium period. The loan is secured by hypothecation of Current Asset, Plant & Machinery and third party land & Building. Further, the loan has been guaranteed by the personal guarantee of directors.

f) Term loan from bank as on 31^st March, 2023 amounting to ''151.73 lakhs/- ( 31^st March 2022: ''130.03 lakhs/-) was taken from Shamrao Vithal Co-operative Bank and carries interest rate @ 9.05%. The loan is repayable in 84 (Eighty four) monthly instalments commencing from Jan 2022. The loan is secured by hypothecation of Current Asset, Plant & Machinery and third party land & Building. Further, the loan has been guaranteed by the personal guarantee of directors.

g) Term loan from bank as on 31^st March, 2023 amounting to ''306.65 lakhs/- ( 31^st March 2022: ''154.58 lakhs /-) was taken from Shamrao Vithal Co-operative Bank and carries interest rate @ 9.05%. The loan is repayable in 84 (Eighty four) monthly instalments commencing from Aug 2022 with 6 months Moratorium period. The loan is secured by hypothecation of Current Asset, Plant & Machinery and third party land & Building. Further, the loan has been guaranteed by the personal guarantee of directors.

h) Term loan from bank as on 31^st March, 2023 amounting to ''20.36 lakhs/- ( 31^st March 2022: '' Nil /-) was taken from Shamrao Vithal Co-operative Bank and carries interest rate @ 9.05%. The loan is repayable in 84 (Eighty four) monthly instalments commencing from Jul 2022 with 6 months Moratorium period. The loan is secured by hypothecation of Current Asset, Plant & Machinery and third party land & Building. Further, the loan has been guaranteed by the personal guarantee of directors.

i) Term loan from bank as on 31^st March, 2023 amounting to ''505.00 lakhs/- ( 31^st March 2022: '' Nil /-) was taken from CITI Bank and carries interest rate @ 8.6%. The loan is repayable in 18 (Eighteen) Quaterly instalments commencing from Apr 2023 with 6 months Moratorium period. The loan is secured by hypothecation of Current Asset, Plant & Machinery and third party land & Building. Further, the loan has been guaranteed by the personal guarantee of directors.

j) Term loan from bank as on 31^st March, 2023 amounting to ''494.00 lakhs/- ( 31^st March 2022: '' Nil /-) was taken from CITI Bank and carries interest rate @ 8.97%. The loan is repayable in 18 (Eighteen) Quaterly instalments commencing from May 2023 with 6 months Moratorium period. The loan is secured by hypothecation of Current Asset, Plant & Machinery and third party land & Building. Further, the loan has been guaranteed by the personal guarantee of directors.

k) Car Loan from HDFC bank as on 31^st March, 2023 amounting to ''27.08 lakhs/- ( 31^st March 2022: ''40.35/- lakhs) was taken and carries an interest rate of 8.63%. The loan is repayable in 84 (Eighty Four) monthly instalments commencing from Oct 2017. The Loan is secured by hypothecation of the said Vehicle.

l) Car Loan from HDFC bank as on 31^st March, 2023 amounting to ''6.22 lakhs/- ( 31^st March 2021: ''8.54/- lakhs) was taken and carries an interest rate of 8.20%. The loan is repayable in 60 (Sixty) monthly instalments commencing from Aug 2020. The Loan is secured by hypothecation of the said Vehicle.

m) Commercial Vehicle Loan from HDFC bank as on 31^st March, 2023 amounting to ''11.85 lakhs/- ( 31^st March 2022: '' Nil) was taken and carries an interest rate of 7.01%. The loan is repayable in 47 (fourty seven) monthly instalments commencing from May 2022. The Loan is secured by hypothecation of the said Vehicle.

n) Car Loan from HDFC bank as on 31^st March, 2023 amounting to '' 17.09 lakhs/- ( 31^st March 2022: '' Nil) was taken and carries an interest rate of 7.90%. The loan is repayable in 48 (fourty eight) monthly instalments commencing from Aug 2022. The Loan is secured by hypothecation of the said Vehicle.

a) Cash credit from HDFC as on 31^st March, 2023 amounting to ''1,971.12 lakhs/- ( 31^st March 2022: ''638.76/- lakhs) is secured by hypothecation of Current Assets, Plant & Machinery and Factory land & building. The credit facility has been guaranteed by personal guarantee of directors. The cash credit is repayable on demand and carries interest @ 9.00% as on 31^st March, 2023.

b) Cash credit from IndusInd Bank as on 31^st March, 2023 amounting to ''Nil /- ( 31^st March 2022: ''44.77/- lakhs). The loan is secured by hypothecation of Current Assets, Plant & Machinery and Factory land & building and also Plant & Machinery and Land & Building in the name of third party. The credit facility has been guaranteed by personal guarantee of directors. The cash credit is repayable on demand and carries interest @ 9.20% as on 31^st March, 2022.

c) Cash credit from Shamrao Vithal Co-operative Bank as on 31^st March, 2023 amounting to ''385.57 lakhs/- ( 31^st March 2022: ''471.74 /- lakhs). The loan is secured by hypothecation of Current Assets, Plant & Machinery and Land & Building in the name of third party. The credit facility has been guaranteed by personal guarantee of directors. The cash credit is repayable on demand and carries interest @ 9.05% as on 31st March, 2023.

d) Cash credit from CITI Bank as on 31^st March, 2023 amounting to ''36.90 lakhs/- ( 31st March 2022: ''749.31/- lakhs). The loan is secured by hypothecation of Current Assets, Plant & Machinery and Factory Land & Building in the name of third party. The credit facility has been guaranteed by personal guarantee of directors. The cash credit is repayable on demand and carries interest @ 8.50% as on 31^st March, 2023

e) Cash credit in form of WCDL from CITI Bank as on 31^st March, 2023 amounting to ''2,500.00/- lakhs ( 31^st March 2022: ''500 lakhs/-) is secured by hypothecation of Current Asset, Plant & Machinery and Factory Land & Building in the name of third party. The credit facility has been guaranteed by the personal guarantee of directors. The facility is repayable on demand and carries interest @ 8.25% as on 31^st March, 2023.

* Pending resolution of Income tax matter, it is not praticable for company to estimate the timings of cash outflow, if any, inrespect of the above only on receipt of judgements/decision pending with the respective authority.

The company has received all its pending litigations & Proceedings and has disclosed contignet liability wherever applicable in the financial statements. The company does not expect the outcome of those proceedings to have materally adverse effect on its financial position."

** The Company has obtained license under Export Promotion Capital Goods Scheme (EPCG) for import of capital goods on zero percent custom duty. Under the EPCG the Company needs to fulfil certain export obligations, failing which, it is liable for payment of custom duty. Export Obligations as on 31^st March, 2023 is ''4,567.36/- lakh ( 31^st March 2022: ''4,862.01/-lakh).

*** The Company has obtained Advance License for import of goods on zero percent custom duty. Under the Advance Licence scheme the Company needs to fulfil certain export obligations, failing which, it is liable for payment of custom duty saved on import. Export Obligations as on 31^st March, 2023 is ''1,963.56/-lakh ( 31^st March 2022: ''609.03/-lakh).

(a) Transactions with related parties and outstanding balances at the year end are disclosed at transaction value. The terms and conditions of these transactions are at arm''s length.

(b) In addition to above transactions:

(i) Directors of the Company has given personal guarantee''s for loans taken by the Company (Refer note 21 and 25)

Note: 43 Breakup of compensation to key managerial personnel

Key management personnel are those persons having authority and responsibility for planning, directing and controlling the activities of the entity, directly or indirectly, including any director (whether executive or otherwise) of that entity.

(ii) Disclosures for defined benefit plans

(a) Defined benefit obligations - Gratuity (funded)

The board vide its resolution dated 5^th July 2022 approved Rajshree Polypack Limited-ESOP 2022 for granting Employee Stock Options in form of equity shares linked to the completion of a minimum period of continued employment to the eligible employees of the Company, monitored and supervised by the Board of Directors. The employees can purchase equity shares by exercising the options as vested at the price specified in the grant.

Once vested, the options remain exercisable for a period of 2 years.

Options are granted under the plan for no consideration and carry no dividend or voting rights. When exercisable, each option is convertible into 1 number of equity share. The exercise price of the share options is equal to the Face value of the underlying shares on the date of grant. The contractual term of the share options is 4.15 years and there are no cash settlement alternatives for the employees.

(a) Primary Segments - Business Segment :

The Company is mainly engaged in the business of manufacturing "Thermoformed Packaging Products All other activities of the Company revolve around the main business and as such, there are no business segments that require reporting under IND AS 108 - "Segment Reporting".