1.1.1. Rights, preferences and restrictions attached to the Equity Shares

The Equity Shares of the Company, having par value of Rs. 5.00 per share, rank pari passu in all respects including voting rights and entitlement to dividend. In the event of liquidation of the Company, the holders of equity shares will be entitled to receive the remaining assets of the Company, after distribution of preferential amounts. The distribution will be in proportion to the number of equity shares held by the share holders.

1.2.1 Term Loan from Kotak Mahindra Bank Limited is secured by equitable mortgage of immovable properties and first charge on all present and future current assets of the company alongwith fixed assets.The Loan is also secured by personal guarantees of Shri Amar Nath Goenka, Smt. Indira Goenka and Shri Amitaabh Goenka.

1.2.2 Repayable in equated monthly installments upto 5 year period from the month following the end of moratorium period of 12 months. New Term Loan of Rs. 500 Lacs repayable in equated monthly installments up to 5 year period from the month following the month of First disbursement of Term Loan.This is payable by 2022-23 and carries a rate of interest @ MCRL 2.00%.Current rate of interest @10.30 p.a.

1.2.3 The Company has taken vehicle loan from HDFC Bank Ltd. which is secured by way of hypothrcation of the vehicle, Repayable in equated monthly installments upto 5 year period , payable by 2021-22 and carries a current rate of interest @ 9.60% p.a.

1.3.1 Cash credit facility from Kotak Mahindra Bank Limited is secured by equitable mortgage of immovable properties and first charge on all present and future current assets of the Company alongwith fixed assets. The Cash Credit Facility are also secured by personal Guarantees of Shri Amar Nath Goenka, Smt. Indira Goenka and Shri Amitaabh Goenka.

1.4 The Company had claimed Trade Exemption U/S 4-A of The U.P.Trade Tax Act, 1948 amounting to Rs.709.14 Lacs from the Divisional Level Committee (DLC), Meerut (U.P.) which allowed a part of the claimed amount. Thereafter, company preferred to file Appeal against the order of DLC and over a period of time, claim of the company was allowed in parts by various forums of the department but full claimed amount of Rs. 709.14 Lacs was never granted. The matter is still pending at Allahabad High Court for exemption of balance outstanding amount of Rs.1,38,66,816 (previous year Rs. 1,38,66,816) for which exemption was not granted to the company. The Company has not paid this amount to the appropriate authorities as on date of Balance Sheet as liabilities are still disputed and under litigation.

1.5 Exports benefits are taken on realisation basis.

1.6 Information on Related Parties as required by Accounting Standard - (IND AS) 24”Related Party disclosures”

I. Related Party Disclousers

a. Key Management Personnel

- Mr. Amar Nath Goenka - Managing Director

- Mr. Amitaabh Goenka - Executive Director

- Mr. S . P. Jain - Executive Director

- Mr. N.K.Bhandari - Company Secretary

b. Relative to Key Management Personnel

- Mrs. Indira Goenka

- Mrs. Manavi Goenka

II. Details of Transactions with Related Parties

(Financial Transactions have been carried at in the ordinary course of business and/or in discharge of contractional obligation)

1.7 Other Non-Operating Income under the head Other Income of Note 2.22 includes Rs 2,791,435 (Previous Year Rs 1,783,794) related to Exchange Fluctuation.

1.8 The Directors have recommendated the payment of a dividend of Rs. 0.50 per fully paid up equity share(Previous Year -Rs. 0.50). The proposed dividend is subject to the approval of shareholders in the ensuing annual general meeting.

1.9 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,2018. This information as required to be disclosed under the Micro, Small and Medium Enterprises Develoment Act, 2006 has been determined to the extent such parties have been identified on the basis of information available with the Company.

1.10 The disclosures required under Ind AS - 19” Empolyee Benefits” notified in the Companies (Accounting Standards) Rules 2015, are given below:

1.11 Liquidity Risk:-

The Company objective is to all times maintain optimum level of liquidity to meet its cash and colleteral requirement at all times. The Company relies on Borrowing and internal accruals to meet its need for fund. The current lines of credit are suffcient to meet its short to medium term expansion needs and hence evaluates the concentration of risk with respect to liquidity as low.

The table provides undiscounted cash flow towards financial liabilities into relevant maturity based on the remaining period at balance sheet date to contractual maturity date.

1.12 Previous year figures have been regrouped /rearranged/reclassified where ever considered necessary.