*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.

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 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

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.

(c) Employee Share Options

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 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.

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".

(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 inwriting 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 thetax 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 (Resctriction 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: 50 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.

(c) Fair value hierarchy

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.

TThe 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:

• Credit risk;

• Liquidity risk;

• 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 51. 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.

(c) Market risk

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:

Foreign currency sensitivity analysis:

The following details are demonstrate the Company's sensitivity to a 1% increase and decrease in the INR against the relevant foreign currencies. The sensitivity analysis includes only outstanding foreign currency denominated monetary items as tabulated above and adjusts their translation at the period end for a 1% change in foreign currency rates. A positive number below indicates an increase in profit or equity and vice-versa.

Note: 55 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).