Nature of Security and Rate of Interest

1. Fund Based Working Capital facilities of Rs. 21.50 crores availed from Punjab National Bank are secured by hypothecation of stock of raw material, WIP, Finished goods , book debts and other current assets (i.e. entire current assets of the company present as well as future) of the company. The rate of Interest is 9.95% which is subject to change from time to time as per Bank/RBI guidelines. All the fund based and non-fund based facilities from Punjab National Bank has been secured by three collaterals in the name of Company having valuation of Rs. 15.28 Crores as per sanction letter, two collateral for friends and relatives of directors having valuations of Rs.6.70 Crores and One collateral in the name of Director having valuation of Rs.1.39 Crore. The Equity Shares (1555000) in the name of Director has also been pledged as collateral security with Punjab National Bank. The aforesaid credit facilities are further secured by Personal guarantee of directors.

2. The adhoc limit of Rs.3 Crores sanctioned by PNB is secured by extension of charge on current assets of the company already held as security by the bank. Further the said facility is also secured by extension of charge on various immovable properties already held by the Bank as security for its credit facilities.

3. Fund Based Working Capital facilities of Rs. 8 crores and Non-Fund Based facilities of Rs.5 crores availed from HDFC Bank are secured by hypothecation of stock of raw material, WIP, Finished goods , book debts and other current assets (i.e. entire current ass ets of the company present as well as future) of the company. The rate of Interest is 8.20% which is subject to change from time to time as per Bank/RBI guidelines. The said facility is collaterally secured by factory land and building measuring 3 Bigha 13 Biswa situated at Jodhapur, Barotiwala, Tehsil Baddi, Distt, Solan having valuation of Rs. 8 crores. The aforesaid credit facilities are further secured by personal guarantee of directors.

31.1 The Company has acquired a company named Mansa Prints and Publishers Limited as per Hon'ble order of NCLT dated 18.03.2020 under Insolvency and Bankruptcy Code 2016 ,the proceedings of which was started on 28.02.2019 .The order of Hon'ble National company Law Tribunal was pronounced on 18.03.2020 wherein the Resolution Plan of ANG Life Sciences India Limited was approved. The payment of Rs.13.50 crores was to be made by the Resolution Applicant ANG Life Sciences India Limited. The Resolution Professional was to be implement the Approved Resolution Plan within 10 months from the approval of Resolution Plan .The implementation of the plan got delayed as the Resolution Applicant ANG Lifesciences India Limited made the major payments i n the month of February and March 2021.The Resolution professional appointed the directors as per the Resolution Plan on 12.02.2021 , however the effective control was passed on to the Board of directors in the month of April,2021.The equity shares to the Resolution Applicant was allotted on 1st April, 2021.

31.2 The litigations for recovery against sundry debtors & advances for Rs. 25784319/- is pending before Courts against 17 parties .There is uncertainty as far as the recovery of this amount is concerned, the Company has shown above amount under the head of Sundry Debtors above 6 months. However the company has made a provision of Rs. 77,35,265/- against the above Debtors as Doubtfull Debts.

32.7 There is no liability towards interest on delayed payments under The Micro, Small and Medium Enterprises Development Act 2006' during the year. There is also no amount of outstanding interest in this regard, brought forward from previous years Information in this regard is on basis of intimation received, on requests made by the Company, with regards to registration of vendors under the said Act.

32.8 Demands/Claims by various government authorities and others not acknowledged as debts by the Company:

(i) Income Tax Matters Rs. 37.47 lakhs (Previous Year: Rs. 28.95 lakhs)

32.9 The figures and groupings of the previous year are regrouped/ reclassified whenever necessary so as to make them compara ble with the current year.