Notes to Accounts of Scoobee Day Garments (India) Ltd.

Mar 31, 2025

13.2 Rights preferences & Restrictions 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.

In the case of liquidation of the Company, the holders of equity shares will be entitled to receive the remaining assets of the Company, after distribution of all preferential claims as provided in the Companies Act, 2013. The distribution will be in proportion to the number of equity shares held by the shareholders.

13.3 The Board of Directors of the Company, in its meeting held on March 27, 2025, has approved a Rights Issue of equity shares to the existing shareholders for an aggregate amount not exceeding ?5,000 Lakhs. Company has filed Draft Letter of Offer (DLOF) with the Securities and Exchange Board of India (SEBI) on May 8, 2025, in accordance with the SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018, as amended. As per the DLOF filed, the proceeds from the Rights Issue are intended to be utilized for the adjustment of unsecured loans from promoters and group companies, and for general corporate purposes.

The shareholders of the Company at the Extra-Ordinary General Meeting held on March 17, 2025, had approved the increase in the authorised share capital of the Company from Rs. 13,50,00,000/- (1,35,00,000 shares) to Rs. 18,00,00,000/- (1,80,00,000 shares) to facilitate the Rights Issue.

Subsequently, the Draft Letter of Offer for the Rights Issue was approved by the Board of Directors on May 8, 2025, and has been filed with the Stock Exchange (BSE Limited) on the same date in accordance with the applicable SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018, as amended.

The Rights Issue is subject to receipt of necessary approvals from SEBI and other statutory/regulatory authorities, as may be applicable.

13.5 There are no shares allotted as fully paid up pursuant to contract(s) without payment being received in cash during the year or 5 years immediately preceding the reporting date.

13.6 There are no shares bought back during the year or 5 years immediately preceding the reporting date.

13.7 There was no bonus issue of shares during the year or 5 years immediately preceding the reporting date.

15.2 Refer Note No.19 for Current Maturities of Non-Current Borrowings

15.3 Term Loan from The Federal Bank Limited is

1) Primarily secured by:-

1) Equitable Mortgage of 32.73 acres of land along with the building and other accessories in Sy. Nos. 382/7, 383/1,

2,7/2, 3/2, 5,6/1, 7/1 at Nedungur Village at Karur, Tamil Nadu

2) Collaterally secured by :-

i) Equitable Mortgage of 52.87 acres of land at Elappully Village, Palakkad owned by the company and DSRA of Rs.2 Crores to be built by way of cut back deposits from export bill realisation@1% of each bill,

ii) Hypothecation of all current assets / movable fixed assets (other than those exclusively financed by other lenders) of the company

Term loan is also secured by corporate guarantee given by Anna Aluminium Company Private Limited and Kitex Limited.

15.4 Working capital Term loan from The Federal Bank Limited is 1) Primarily secured by:-

1) Hypothecation of all movable fixed assets created out of bank finance

2) Collaterally secured by:-

i) Equitable Mortgage of 52.87 acres of land at Elappully Village, Palakkad owned by the company.

ii) Equitable Mortgage of 32.73 acres of land along with the building and other accessories in Sy. Nos. 382/7, 383/1, 2,7/2, 3/2,

5,6/1, 7/1 at Nedungur Village at Karur, Tamil Nadu

19.1 Short term facilities from The Axis Bank Limited is :-1) Primarily secured by:-

1) Hypothecation of current assets both present and future under pari pasu basis with The Federal Bank Limited.

2) Collaterally secured by :-

i) Equitable Mortgage of 52.87 acres of land at Elappully Village, Palakkad owned by the company on pari passu basis with Federal Bank Ltd

ii) Equitable Mortgage of 32.73 acres of land along with the building and other accessories in Sy. Nos. 382/7, 383/1, 2,7/2, 3/2, 5,6/1, 7/1 at Nedungur Village at Karur, Tamil Nadu on pari passu basis with Federal Bank Ltd.

3) Secured by Corporate Guarantee:-

i) Anna Aluminium Company Private Limited

ii) Kitex Limited

19.2 Short term facilities from The Federal Bank Limited is secured by Equitable Mortgage of 32.73 acres of land along with the building and other accessories in Sy. Nos. 382/7, 383/1, 2,7/2, 3/2, 5,6/1, 7/1 at Nedungur Village at Karur, Tamil Nadu.

24.1 During the financial year 2024-25, the Company received a government grant of ?45.55 lakhs under the Amended Technology Upgradation Fund Scheme (ATUFS) towards machinery acquired in the financial year 2021-22. In accordance with Ind AS 20 - ''Accounting for Government Grants and Disclosure of Government Assistance'', the grant has been recognised as deferred income and is being amortised to the Statement of Profit and Loss over the remaining useful life of the related asset. Refer Note No. 2.19 for accounting policy of Government Subsidy/ Grant

33.1.2 Financial Risk Management - Objectives and Policies

The Company has a well- managed risk management framework, anchored to policies and procedures and internal financial controls aimed at ensuring early identification, evaluation and management of key financial risks (such as liquidity risk, market risk and credit risk) that may arise as a consequence of its business operations as well as its investing and financing activities.

Accordingly, the Company''s risk management framework has the objective of ensuring that such risks are managed within acceptable risk parameters in a disciplined and consistent manner and in compliance with applicable regulation.

1) Liquidity Risk

Liquidity risk is the risk that the Company will face in meeting its obligations associated with its financial liabilities. The Company''s approach in managing liquidity is to ensure that it will have sufficient funds to meet its liabilities when due without incurring unacceptable losses. In doing this, management considers both normal and stressed conditions.

Ultimate responsibility for liquidity risk management rests with the board of directors, who regularly monitors the rolling forecasts to ensure it has sufficient cash on an on-going basis to meet operational needs. The company manages liquidity risk by continuously monitoring the actual cash flows, and by matching the maturity profiles of financial assets and liabilities.

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 :-

2) Market Risk

Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market conditions. Market risk mainly comprises of interest rate risk and currency risk. Financial instruments affected by market risk includes borrowings, trade payables and trade receivables. The Company''s activities expose it primarily to the financial risks of changes in foreign currency exchange rates and interest rates.

There has been no significant changes to the Company''s exposure to market risks or the manner in which these risks are being managed and measured.

a) Interest rate risk

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The company''s exposure to changes in interest rates primarily relates to the companies outstanding floating rate debt and investments in fixed deposits. A portion of company''s working capital debt is denominated in foreign currency. These credit facilities are subject to periodic interest rate resets. Based on the past experience the variability of interest on fixed deposits and working capital loan are not expected to be material. Further there are only short term foreign currency debt in the form of packing credit which are subject to minimal changes in interest rate during it''s term.

b) Foreign Currency risk

The Company''s foreign currency transactions (mainly US Dollar) are subject to the risk of exchange rate fluctuations. Carrying amounts of Financial assets and liabilities denominated in foreign currency, are also subject to reinstatement at the year end. Exchange rate exposures are managed by company with approved policy parameters by constant monitoring.

Trade receivables

Historically, trade receivables show a negligible provision for bad and doubtful debts and collections depict low credit risk. Therefore, the Company does not expect any material risk on account of nonperformance by any of the Company''s counterparties.

All trade receivables are reviewed and assessed for default on a quarterly basis.

Other financial assets

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

For bank balances, the Company attempts to limit the credit risk by only dealing with reputable banks and financial institutions.None of the Company''s cash equivalents, including time deposits with banks, are past due or impaired.

Regarding trade receivables and other financial assets (both current and non-current), based on the impairment assessment, there were no indications as at the year end, that defaults in payment obligations will occur.

33.1.3 Capital Management

For the purpose of the Company''s capital management, capital includes issued capital and all other equity reserves attributable to the equity shareholders of the Company. The primary objective of the Company when managing capital is to safeguard its ability to continue as a going concern and to maintain an optimal capital structure so as to maximize shareholder value. As at 31st March, 2025, the Company has only one class of equity shares. The company is not subject to any externally imposed capital requirements.

The Company''s financial strategy aims to support its strategic priorities and provide adequate capital to its businesses for growth and creation of sustainable stakeholder value.

33.2. As at the year end of March 31st, 2025, the Company has not proposed or implemented any composite scheme of arrangement under Sections 230-232 of the Companies Act, 2013.

ii) Actuary has used Projected Unit Credit method. If an employee''s service in later years will lead to a materially higher level of benefit than in earlier years, these benefits are attributed on a straight-line basis. The limitations are that in assessing the change other parameters are kept constant. As some of the assumptions may be correlated, it is unlikely that changes in assumptions will occur in isolation of one another.

iii) There is no change from the previous period in the methods and assumptions used in the preparation of above analysis, except that the base rates have changed

33.17 Title deeds of Immovable Properties not held in name of the Company

The Company does not possess any immovable property (other than properties where the Company is the lessee and the lease agreements are duly executed in favour of the lessee) whose title deeds are not held in the name of the Company during the financial year ended March 31, 2025, and March 31, 2024.

33.18 Wilful Defaulter

The Company has not been declared as a wilful defaulter by any bank or financial institution or other lender in the financial years ended March 31, 2025, and March 31, 2024

33.19 Relationship with Struck off Companies

Company has not entered into any transactions with companies whose names have been struck off under section 248 of Companies Act, 2013 or section 560 of Companies Act, 1956 in the financial years ended March 31, 2025, and March 31, 2024.

33.20 Registration of charges or satisfaction with Registrar of Companies (ROC)

All charges or satisfaction are registered with ROC within the statutory period for the financial years ended March 31st, 2025, and March 31st, 2024. No charges or satisfactions are yet to be registered with ROC beyond the statutory period.

33.21 Compliance with number of layers of companies

The Company has complied with the number of layers prescribed under clause (87) of section 2 of the Act read with Companies (Restriction on number of Layers) Rules, 2017 for the financial years ended March 31, 2025, and March 31, 2024.

33.22 Discrepancy in utilisation of borrowings

The company has used the borrowings from banks and financial institutions for the specific purpose for which it was taken.

33.23 Utilization of borrowed funds

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

33.24 Details of Crypto Currency or Virtual Currency

The Company does not hold any cryptocurrency or virtual currency as at 31st March 2025 and 31st March 2024. The Company has also not received any deposits or advances for the purpose of investing in cryptocurrencies or virtual currencies.

33.25 CSR Applicability

In accordance with the provisions of Section 135 of the Companies Act, 2013 read with the Companies (Corporate Social Responsibility Policy) Rules, 2014, the Company is required to constitute a CSR Committee and undertake CSR activities if it meets the financial criteria prescribed under the Act. The Company did not meet any of the criteria specified under Section 135(1) of the Act, as per the audited financial statements of the preceding financial year. Accordingly, the provisions related to Corporate Social Responsibility are not applicable to the Company for the financial year 2024-25.

C. Nature of Leasing Arrangements

1. All leases are classified as operating leases, as the Company retains significant risks and rewards of ownership.

2. Lease terms vary between 4 to 15 years with provisions for annual rent collection and defined lease durations.

3. There are no purchase options in any of the agreements.

4. Leases are cancellable only on terms mutually agreed between the parties.

5. Rentals from land and building components are charged as a combined lease payment, and the lease is treated as a single operating lease.

33.27. Compliance relating to audit trail on accounting software used by the company.

The accounting software used by the company for maintaining its books of account is "SAP ECC 6.0". The software has a feature of audit trial(edit log) facility at the application level for each change made in the books of account along with date of such changes made. This feature of audit trial (edit log) facility was operated throughout the year for all transactions recorded in such software and have not been tampered with.

Direct access to the database of accounting software is available only to database administrator and there are appropriate controls to prevent any unauthorised modifications at database layer. Additionally, Company has preserved audit trail that was enabled and operated for the year ended March 31, 2024, as per the statutory requirements for record

retention.

Trade Receivables and Payables:

The differences observed in Trade Receivables and Trade Payables as furnished in the stock returns/statements are primarily attributable to delays in the timely updating of accounting records.

Inventory:

Variations in inventory values are due to the inclusion of labour costs in the valuation of work-inprogress and finished goods, after the stock statements were submitted to the bank.

33.28.2. The stock of canteen, scrap etc are not considered while giving stock statement to bank.

33.29. The Company has, for the first time, recognised gratuity liability of employees during the quarter and six months ended September 30, 2024, in accordance with Indian Accounting Standard (Ind AS) 19 - "Employee Benefits", based on an actuarial valuation performed by an independent actuary. In accordance with Ind AS 8 - Accounting Policies, Changes in Accounting Estimates and Errors, the Company has made retrospective adjustments to reflect the gratuity liability in prior periods. The cumulative effect of Rs. 13.15 Lakhs has been recognized as an adjustment to the opening balance of retained earnings (net of deferred tax) as of 01.04.2023, the earliest prior period presented. Details of restatement each of the affected financial statement line items for the prior periods are as follows.:

Basic and diluted earnings per share for the prior year have also been restated. The amount of the correction for both basic and diluted earnings per share was a decrease of ?0.20 per share. The correction of the error had no impact on previously reported cash flows from operating, investing and financing activities

33.30. The Company does not hold any benami property under the Benami Transactions (Prohibition) Act, 1988 and no proceeding has been initiated or is pending against the Company for holding any benami property.

33.31. The Company has not received any fund from any person(s) or entity(is), 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

33.32. The Company has not surrendered or disclosed any income during the year in the tax assessments under the Income Tax Act, 1961.

33.33. The Company has a process whereby periodically all long-term contracts (including derivative contracts) are assessed for material foreseeable losses. At the year end, the Company has reviewed and ensured that adequate provision as required under any law/accounting standards for material foreseeable losses on such long-term contracts(including derivative contracts) has been made in the books of accounts.

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Mar 31, 2024

30.1 Fair Value Measurement

Fair value of the financial instruments is classified in various fair value hierarchies based on the following three levels:

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

Level 2: Inputs other than quoted price included within level 1 that are observable for the asset or liability, either directly or indirectly.

Level 3: Inputs for the assets or liabilities that are not based on observable market data (unobservable inputs).

The fair value of trade receivables, trade payables and other Current financial assets and liabilities is considered to be equal to the carrying amounts of these items due to their short-term nature.

There were no transfers between Level 1 and Level 2 during the year.

Financial Risk Management - Objectives and Policies

The Company has a well- managed risk management framework, anchored to policies and procedures and internal financial controls aimed at ensuring early identification, evaluation and management of key financial risks (such as liquidity risk, market risk, credit risk and foreign currency risk) that may arise as a consequence of its business operations as well as its investing and financing activities.

Accordingly, the Company''s risk management framework has the objective of ensuring that such risks are managed within acceptable risk parameters in a disciplined and consistent manner and in compliance with applicable regulation.

1) Liquidity Risk

Liquidity risk is the risk that the Company will encounter due to difficulty in raising funds to meet commitments associated with financial instruments that are settled by delivering cash or another financial asset. Liquidity risk may result from an inability to sell a financial asset quickly at close to its fair value.

2) Market Risk

The exposure to interest rate risk from the perspective of Financial Liabilities is negligible. Further, treasury activities, focused on managing investments in debt instruments, are administered under a set of approved policies and procedures guided by the tenets of liquidity, safety and returns. This ensures that investments are only made within acceptable risk parameters after due evaluation. The Company’s investments are predominantly held in fixed deposits. Fixed deposits are held with highly rated banks and have a short tenure and are not subject to interest rate volatility.

3) Credit Risk

Credit risk refers to risk that a counterparty will default on its contractual obligations resulting in financial loss to the Company Credit risk arises primarily from financial assets such as trade receivables, other balances with banks and other receivables.

The Company has adopted a policy of only dealing with counterparties that have sufficiently high credit rating. The Company’s exposure and credit ratings of its counterparties are continuously monitored and the aggregate value of transactions is reasonably spread amongst the counterparties. Credit risk arising from other balances with banks is limited because the counterparties are banks with high credit ratings.

4) Foreign Currency Risk

The Company undertakes transactions denominated in foreign currency (mainly US Dollar) which are subject to the risk of exchange rate fluctuations. Financial assets and liabilities denominated in foreign currency, are also subject to reinstatement risks.

Capital Management

For the purpose of the Company’s capital management, capital includes issued capital and all other equity reserves attributable to the equity shareholders of the Company. The primary objective of the Company when managing capital is to safeguard its ability to continue as a going concern and to maintain an optimal capital structure so as to maximize shareholder value.

The Company’s financial strategy aims to support its strategic priorities and provide adequate capital to its businesses for growth and creation of sustainable stakeholder value. The Company funds its operations through Short Term Inter corporate borrowing from Anna Aluminium Company Private Limited and Kitex Limited.

As at 31st March, 2024, the Company has only one class of equity shares. The company is not subject to any externally imposed capital requirements.

30.17 Managerial Remuneration

The Company has been complied with the provisions of Companies Appointment and Remuneration of Managerial Personnel Rules 2014 read with Section 197 of the Companies Act, 2013. Hence no information is required to be append to this Notes in this regard.

30.17 Payment of Gratuity

No Provision has been made towards gratuity payable to employees under the payment of Gratuity Act 1972, Since none of the employees has completed 5 years of continuous service.

30.18 Title deeds of Immovable Properties not held in name of the Company

The Company does not possess any immovable property (other than properties where the Company is the lessee and the lease agreements are duly executed in favour of the lessee] whose title deeds are not held in the name of the Company during the financial year ended March 31,2024, and March 31, 2023.

30.19 Wilful Defaulter

The Company has not been declared as a wilful defaulter by any bank or financial institution or other lender in the financial years ended March 31, 2024, and March 31, 2023

30.20 Relationship with Struck off Companies

Company has not entered into any transactions with companies whose names have been struck off under section 248 of Companies Act, 2013 or section 560 of Companies Act, 1956 in the financial years ended March 31, 2024, and March 31,

2023.

30.21 Registration of charges or satisfaction with Registrar of Companies (ROC)

All charges or satisfaction are registered with ROC within the statutory period for the financial years ended March 31,

2024, and March 31, 2023. No charges or satisfactions are yet to be registered with ROC beyond the statutory period.

30.22 Compliance with number of layers of companies

The Company has complied with the number of layers prescribed under clause (87) of section 2 of the Act read with Companies (Restriction on number of Layers) Rules, 2017 for the financial years ended March 31,2024, and March 31, 2023.

30.23 Discrepancy in utilisation of borrowings

The company has used the borrowings from banks and financial institutions for the specific purpose for which it was taken.

30.24 Utilization of borrowed funds

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

30.25 Details of Crypto Currency or Virtual Currency

The Company has not traded or invested in Crypto currency or Virtual currency during the financial years ended March 31, 2024, and March 31, 2023.

30.26 Details of disclosures made to Banks / Financial Institutions for credit facilities availed

The company has availed credit facilities from bank or financial institutions during the current year with the hypothecation of assets under finance, book debts, other receivables and margin money deposits. The quarterly returns or statements of current assets filed by the Company with financial institutions are not in accordance with books of accounts. The differences are due to the following reasons:

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Mar 31, 2018

1. Corporate Information;

Victory Paper and Board India LTD is public limited company originally incorporated under the Companies Act 1956 on 9th December 1994, with registered office at Kunnamkulam and factory at Palakkad Dt. The company was engaged in manufacturing paper and paper products. Due to labour problem the company was not doing manufacturing activities from 20G9D . As a result they have sold the stock in trade and also most of the plant and machinery.

During the year 2017-18, the company is taken over by the present arrangement, belonging to Anna Group of Companies, Kizhakkampalam at Aluva, ErirakuDt. Commercial activities have not started yet. The company was listed in Mumbai exchange and the equity share capital was raised from public which then was suspended During the year 207-B, the company was again listed.

The financial statement was authorized by the board of directors for income in accordance with resolution passed on -SD-2DB.

Rights ,Preferences & Restrictions attached to Equity shares.

The Equity shares of the company having par value of Rs.10/- per share rank pari-pasu in all respects including voting rights, entitlement to dividend and repayment of capital

1) there are no micro, small and medium enterprises to whom the company owes dues, which are outstanding for more than45 days as at 31st march,2018. this information as required to be disclosed under the micro, small and medium enterprise development act, 2006 has been determined to the extend such parties have been identified on the basis of information available with the company.

2) Trade payables are subject to confirmation and reconciliation.

3) The company has received a demand of Rs. 33,29,625/- from Kerala Commercial Taxes Department on account of disputed sales tax collected by the company. The company has disputed the demand before the Hon; High Court of Kerala and a favourable order has been received on 02.03.2012. We received a favourable decision from Director of Industries and Commerce and the same forwarded to Kerala Commercial taxes for further decision.

Note 2 Deferred Tax

In consideration of the past record of the company and the prevailing uncertainty, no deferred tax assets h recognized on prudent basis as per the Accounting Standard 22 on ''Accounting for taxes on income''.

Note 3 Other Notes

The company has not made any import of Raw material, Components and spares and Capital Goods during.

The company has not incurred any expenditure in foreign currency during the year.

The company has not paid any dividend in foreign currencies during the year to Non-resident shareholders.

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Mar 31, 2014

1) Term Loan of Rs. 11938260/- (Previous year Rs. 17012701/-) is secured by equitable mortgage of building and charge on machinery and other fixed assets. Collateral Security is provided by way of equitable mortgage of 52.87 acres of land and factory building. It is further secured by personal guarantees of Directors, K P Davis and K.P. Saxon

2) Term Loan is from Federal Bank and carries an Interest rate of 13%. Loan amount is repayable in 72 equal instalments of Rs.321666/-. Due to lockout the company is not able to meet its financial obligations, hence the account has been classified as Non-performing Asset by the bank from 18.10.2011. The default in repayment of loan is Rs. 1,19,38,260/- (Previous Year Rs. 1,70,12,701/-), which consist of Rs. 1,19,38,260/- (Previous Year Rs.1,42,38,260/- towards principal and Interest Nil (Previous Year Rs.27,74,441/-).

3) There are no Micro, Small and Medium Enterprises to whom the company owes dues, which are outstanding for more than 45 days as at 31st March, 2014. This information as required to be disclosed under the Micro, Small and Medium Enterprise Development Act, 2006 has been determined to the extend such parties have been identified on the basis of information available with the company.

4) Trade payables are subject to confirmation and reconciliation

5) The company has received a demand of Rs. 3329625 from Kerala Commercial Taxes Department on account of disputed sales tax collected by the company. The company has disputed the demand in the Hon''ble High Court of Kerala and a favourable order has been received on 02.03.2012. We are awaiting for a favourable decision form Director of Industries and Commerce. This liability has been included in ''Statutory Dues payable''.

6) Advance From Customers are mainly from Group concerns of Victory Paper and Boards (India) Ltd.

Note 7

Contingent Liabilities and Commitments

1) Contingent Liabilities

a) Claims against company not acknowledged as debt Nil Nil

b) Guarantees Nil Nil

c) Other money for which the company is contingently liable Nil Nil

2) Commitments

a) Estimated amount of contracts remaining to be executed on capital accountand not provided for Nil Nil

b) Uncalled liability on shares and other investments partly paid Nil Nil

c) Other Commitments Nil Nil

Note 8

Segment Reporting

The company has only one business segment i.e. paper manufacturing and sales. Hence there is no reportable segments as per Accounting Standard-17 on ''Segment Reporting''.

Note 9

Deferred Tax

In consideration of the past record of the company and the prevailing uncertainty, no deferred tax assets have been recognized on prudent basis as per the Accounting Standard 22 on ''Accounting for taxes on income''.

Note 10

Other Notes

1) The company has not made any import of Raw material, Components and spares and Capital Goods during the year.

2) The company has not incurred any expenditure in foreign currency during the year.

3) The company has not paid any dividend in foreign currencies during the year to Non-resident shareholders.

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Mar 31, 2013

Note 1

Contingent Liabilities and Commitments

1) Contingent Liabilities

a) Claims against company not acknowledged as debt Nil Nil

b) Guarantees Nil Nil

c) Other money for which the company is contingently liable Nil Nil

2) Commitments

a) Estimated amount of contracts remaining to be executed on capital

account and not provided for Nil Nil

b) Uncalled liability on shares and other investments partly paid Nil Nil

c) Other Commitments Nil Nil

Note 2

Segment Reporting

The company has only one business segment i.e. paper manufacturing and sales. Hence there is no reportable segments as per Accounting Standard-17 on ''Segment Reporting''.

Note 3 Deferred Tax

In consideration of the past record of the company and the prevailing uncertainty, no deferred tax assets have been recognized on prudent basis as per the Accounting Standard 22 on ''Accounting for taxes on income''.

Note 4 Other Notes

1) The company has not made any import of Raw material, Components and spares and Capital Goods during the year.

2) The company has not incurred any expenditure in foreign currency during the year.

3)The company has not paid any dividend in foreign currencies during the year to Non-resident shareholders.

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Mar 31, 2011

1. 31.03.2011 31.03.2010 (Rs. in lacs) (Rs. in lacs)

Contingent liabilities

a. Claims against the company not acknowledged as debts. Nil Nil

b. Estimated amount of contracts remaining to be executed on capital account and not provided for (Net of advances) Nil Nil

2. Sales include Rs 46,30,463/- to Victory Press (P) Ltd., of which debit outstanding is Rs.Nil. Rent include Rs.1,14,000 /- being rent paid to Victory Press (P) Ltd. Expenses include Rs.3095318/- paid to Victory Computer Forms towards material purchase, Rs. 780/- paid to Victory press (P) Ltd towards printing charges. The above are related concerns and represent transactions with related parties as per the Accounting Standard-18 issued by the Institute of Chartered Accountants of India on the subject.

3. Most of the creditors, loans and advances payable to and receivable by the company are subject to confirmation and reconciliation. No payments against demands, which are due in respect of Income Tax, Customs Duty, Excise Duty etc. are outstanding as on 31.03.2011.

4. Traveling expenses include expenses incurred by Managing director Rs.39,840/-

5. It has been resolved vide board meeting dated 31.03.2011 that the directors are not drawing remuneration till 31st March 2011. Thus no provision is made in the accounts for remuneration during the year.

6. The Company has only one business segment ie. paper manufacturing and sales. Hence Accounting Standard-17 on Segment Reporting is not applicable to the Company.

7. The Company has not paid any dividend in foreign currencies during the year to non-Resident Shareholders.

8. In consideration of the past record of the company and the prevailing uncertainty, no deferred tax assets have been recognized on prudent basis as per the accounting standard 22 on Accounting for taxes on income.

9. The company has an internal system to assess the impairment of assets. Appropriate disclosure on material impairment of losses and their treatment in profit & Loss account, classes of assets and nature of impairment will be made in the year in which the impairment is recognized.

10. The Company has received a demand of Rs 33.30 Lakhs from the Sales tax department on account of disputed sales tax collected by the company. The company has disputed the demand and a stay petition is filed and the same is granted by the Hon. High Court of Kerala and is hopeful of getting a favorable decision in the matter on the basis of expert legal opinions. The above liability is shown under Sch -11 current liabilities.

11. The Company has paid Rs 432.46 Lakhs to Kerala State Electricity Board towards disputed electricity charges after the dismissal of the Company's petition by the High court of Kerala against charging of disputed tariff by the Electricity board. The company has disputed the matter and filed an appeal before Supreme Court of India. Our appeal was dismissed. However we have again filed a review petition before the Supreme Court of India and is expecting a favorable decision in the matter on the basis of favorable judicial decisions. Hence the amount of Rs 432.46 lakhs paid towards the same is shown as 'receivables' under the head 'Other Current Assets' in Schedule-9.

12. No provision for bonus has been made during the year 2010-11

13. There are no Micro, Small and Medium enterprises to whom the company owes dues, which are outstanding for more than 45 days as at 31st march, 2011. This information as required to be disclosed under the Micro, Small and Medium enterprise Development Act, 2006 has been determined to the extend such parties have been identified on the basis of Information available with the company.

14. During the year the Company has not made any allotment of equity shares.

15. The Company is having a part time Company Secretary. Efforts are being made to appoint a whole time Secretary.

16. Previous years figures have been regrouped and readjusted wherever necessary and practicable. Figures are rounded to the nearest rupee.

17. The factory of the company is under lockout from 30.08.2009 due to labour disputes. Various conciliation meetings were held to resolve the issues. However no final solution has reached till date.

Note: 1. Figure in brackets represent outflows.

2. "Purchase of Fixed Assets" includes capital work in progress and expenditure during Construction period.

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Mar 31, 2010

31.03.2010 31.03.2009

(Rs. in lacs) (Rs. in lacs)

1. Contingent liabilities

a. Claims against the company not acknowledged as debts. Nil Nil

b. Estimated amount of contracts remaining to be executed on capital account and not provided for (Net of advances) 400 400

2. Earnings per share

i) Profit/Loss after tax (Rs) (26726136) (18223728)

ii) No. of ordinary shares 13062900 13062900

iii) Nominal value of shares (Rs) 10 10

iv) Basic/Diluted earnings per share (Rs) (2.05) (1-40)

3. Sales include Rs. 36797378/-to Victory Press (P) Ltd., of which debit outstanding is Rs.Nil. Rent include Rs.1.14 lakhs being rent paid to Victory Press (P) Ltd. Expenses include Rs. 6939056/- paid to Victory Computer Forms towards material purchase, Rs. 2289/- paid to Victory press (P) Ltd towards printing charges and Rs. 3750/- paid to Victory Paper Converters towards printing charges. The above are related concerns and represent transactions with related parties as per the Accounting Standard-18 issued by the Institute of Chartered Accountants of India on the subject.

4. Most of the creditors, loans and advances payable to and receivable by the company are subject to confirmation and reconciliation. No payments against demands, which are due in respect of Income Tax, Customs Duty, Excise Duty etc. are outstanding as on 31.03.2010.

5. Travelling expenses include expenses incurred by Managing director Rs.180016/- and Joint Managing director Rs.29674/-

6. The loss for the year is after foreign exchange loss of Rs. 262195/- being gain due to foreign exchange difference.

7. It has been resolved vide board meeting dated 31.03.10 that the directors are not drawing remuneration till 31st March 2010. Thus no provision is made in the accounts for remuneration during the year.

8. The Company has only one business segment ie. paper manufacturing and sales. Hence Accounting Standard-17 on Segment Reporting is not applicable to the Company.

9. The Company has not paid any dividend in foreign currencies during the year to non-Resident Shareholders.

10. In consideration of the past record of the company and the prevailing uncertainty, no deferred tax assets have been recognized on prudent basis as per the accounting standard 22 on Accounting for taxes on income.

11. The company has an internal system to assess the impairment of assets. Appropriate disclosure on material impairment of losses and their treatment in profit & Loss account, classes of assets and nature of impairment will be made in the year in which the impairment is recognized.

12. The Company has received a demand of Rs 33.30 Lakhs from the Sales tax department on account of disputed sales tax collected by the company. The company has disputed the demand and a stay petition is filed and the same is granted by the Hon. High Court of Kerala and is hopeful of getting a favorable decision in the matter on the basis of expert legal opinions. The above liability is shown under Sen -11 current liabilities.

13. The Company has paid Rs 432.46 Lakhs to Kerala State Electricity Board towards disputed electricity charges after the dismissal of the Companys petition by the High court of Kerala against charging of disputed tariff by the Electricity board. The company has disputed the matter and filed an appeal before Supreme Court of India. Our appeal was dismissed. However we have again filed a review petition before the Supreme Court of India and is expecting a favorable decision in the matter on the basis of favorable judicial decisions. Hence the amount of Rs 432.46 lakhs paid towards the same is shown as receivables under the head Other Current Assets in Schedule-9.

14. Provision for bonus has been made in accordance with the Payment of Bonus Act, 1965, and also in compliance with the Accounting standard 29 in respect of provisions.

15. There are no Micro, Small and Medium enterprises to whom the company owes dues, which are outstanding for more than 45 days as at 31st march, 2010. This information as required to be disclosed under the Micro, Small and Medium enterprise Development Act, 2006 has been determined to the extend such parties have been identified on the basis of Information available with the company.

16. During the year the Company has not made any allotment of equity shares.

17. The Company is having a part time Company Secretary. Efforts are being made to appoint a whole time Secretary.

18. Previous years figures have been regrouped and readjusted wherever necessary and practicable. Figures are rounded to the nearest rupee.

19. The factory of the company is under lockout from 30.08.2009 due to labour disputes. Various conciliation meetings were held to resolve the issues. However no final solution has reached till date.