. In the opinion of the management of the company, the current assets, loans& advances have a value, if realized, in the ordinary course of business, at least equal to that stated in the Balance Sheet.

. Balance of Sundry Debtors, Sundry Creditors and Loans &Advances are subject to confirmation and reconciliation.

The company had defaulted on payments of its debt obligations to its lender leading to its borrowing being classified as NPA the StateBank of India as on 31.03.2021.State Bank of India vide its letter No.SAMB/HFL/2021-22/958 dated 28.03.2022, has sanctioned One Time Compromise settlement for an amount of Rs.17.72 crores against principal outstanding of Rs.19.63 cr. and total dues of Rs.21.06 cr. in full & final settlement of the account. The said amount has been repaidby the company in various installments till 28.02.2023.

. The company has provided interest amounting to Rs.194.82 Lakhs on NPA Classififed accounts with State Bank of India upto 31.12.2021. However, the company has stopped any further provision of interest in its books of account in view of comprise settlement with State Bank of India vide their letter No.SAMB/HFL/2021-22/958 dated 28.03.2022. During the current year, after paying the interest, balance amount has been transferred to Profit & Loss account under the head ‘Exceptional Items’.

. The company has not submitted any quarterly returns or statements of current assets to State Bank of India since the accounts of the company were classified as NPA by State Bank of India during the year under reference.

. The Company has no transactions with companies struck off under section 248 of the Companies Act, 2013 or section 560 of the Companies Act, 1956 during the year under review.

Leases:

(i) Leases as Lessee

The company has long term lease contract for factory land situated plot no.43-44, Industrial area Barotiwala District Solan which has lease term for 99 years. Generally, The Company’s obligations under its lease are secured by the lessor’s title to the leased assets. The company is restricted from assigning and subleasing the leased assets.

The company also has certain leases of office premises and machinery and equipment with lease term of 12 months or less. The company applies the short term lease recognition exemptions for these leases.

Payments associated with short term leases are recognized on a straight line basis as an expense in statement of profit and loss. Short term leases are leases with a lease term of 12 months or less.

42.There are cheques amounting to Rs.10.00 Lacs issued in FY 2018-19 which are not yet cleared from the bank accounts of the company as on 31.03.2023are shown under the other current liabilities at Note no.18.

b. Provident Fund

During the year the company has recognized an expense of Rs. 6.54 Lakhs (Previous Year Rs. 9.44 Lakhs) towards provident fund scheme.

c. Leave Encashment and Bonus

During the year the company has recognized an expense of Leave Encashment and Bonus for Rs. 11.58 Lakhs and Rs. 15.77 Lakhs respectively (Previous Year 14.05 Lakhs and Rs. 19.52 Lakhs respectively)

46. The figures of the previous year have been rearranged/ regrouped, wherever necessary to facilitate comparison.