1.3.10. Provisions, Contingent Liabilities and Contingent Assets

Provisions involving substantial degree of estimation in measurement are recognized when there is a legal or constructive obligation as a result of past events and it is probable that there will be an outflow of resources and a reliable estimate can be made of the amount of obligation. Provisions are not recognized for future operating losses. The amount recognized as a provision is the best estimate of the consideration required to settle the present obligation at the end of the reporting period, taking into account the risks and uncertainties surrounding the obligation.

Contingent liabilities is not recognized and are disclosed by way of notes to the financial statements when there is a possible obligation arising from past events, the existence of which will be confirmed only by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the Company or when there is a present obligation that arises from past events where it is either not probable that an outflow of resources will be required to settle the same or a reliable estimate of the amount in this respect cannot be made.

Contingent Assets are disclosed in the financial statements by way of notes to accounts when an inflow of economic benefits is probable.

Provisions, contingent liabilities and contingent assets are reviewed at each Balance Sheet date.

1.3.11. Employee Benefits

> Short term Employee benefits in respect of salary and wages, including non monetary benefits are recognized as an expense at the undiscounted amount in statement of Profit and Loss in the year in which related service are rendered.

> Provident & Family Pension Fund: In accordance with the provisions of the Employee Provident Funds and Miscellaneous Provisions Act, 1952, eligible employees of the company are entitled to receive benefits with respect to provident fund, a defined contribution plan, in which both the company and employee contribute monthly to Provident Fund Scheme by the Central Government/ Trust at a determined rate. The company contributes to the Employees' Pension Scheme, 1995 for certain categories of employees. The Company's recognized contribution payable to such funds as an expense when an employee Rendered the related services.

> Gratuity: Employee benefits under defined benefit plans are determined at the close of each year at the present value of the amount payable using actuarial valuation techniques.

Contributions under the scheme for defined benefit under the Payment of Gratuity Act, 1972, is determined on the basis of actuarial valuation by a qualified actuary using the projected unit credit method and are funded with Insurance Companies and recognized as years expenditure. Remeasurement gain or loss arising from experience adjustments and changes in actuarial assumptions are recognized directly in other comprehensive income in the period they occur and is presented under retained earnings. Remeasurements are not classified to the statement of Profit and Loss in subsequent periods. Other costs are recognized in the Statement of Profit or Loss. Bifurcation of Unfunded liabilities into Current and Non-current are done based on actuarial valuation report.

> Leave Encashment Benefits: Leave encashment benefits payable to employees while in service, retirement and on death while in service or on termination of employment. With respect to accumulated leaves outstanding at the year-end are accounted for on the basis of actuarial valuation at the balance sheet date. The present value of such an obligation is determined by the projected unit credit method as at the balance sheet date through which the obligations are settled. The resultant actuarial gain or loss on change in present value of defined benefit obligation or change in return of the plan assets is recognized as an income or expense in the Statement of Profit and Loss. Bifurcation of liabilities into Current and Non-current are done based on actuarial valuation report.

1.3.12. Revenue

a) Sale of Goods

The Company derives revenues primarily from the sale of manufactured goods. Revenue from contracts with customers is recognized on satisfaction of performance obligation upon transfer of control of promised goods to a customer at an amount that reflects the consideration to which the Company is expected to be entitled to in exchange for those goods.

Revenue towards satisfaction of a performance obligation is measured at the amount of transaction price (net of variable consideration) allocated to that performance obligation. The transaction price of goods sold is net of variable consideration on account of trade discounts, returns, volume rebates offered by the Company as part of the contract. Revenue (net of variable consideration) is recognized only to the extent that it is highly probable that the amount will not be subject to significant reversal when uncertainty relating to its recognition is resolved.

Revenue from sale of products is recognized when the control on the goods have been transferred to the customer. The performance obligation in the case of sale of product is satisfied at a point in time i.e., when the material is shipped to the customer or on delivery to the customer, as may be specified in the contract.

b) Interest, Dividend and Claims

Dividend income is recognized when the right to receive payment is established. Interest has been accounted using an effective interest rate method. Insurance claims/ other claims are accounted as and when settled.

c) Export Benefits

Export benefits arising on account of entitlement for duty-free imports are accounted for through the import of materials. Such benefits under Merchandise Exports for India Scheme (MEIS) are accounted for on accrual basis. Other export benefits are accounted for based on certainties as to its utilization and related realization.

1.3.13. Borrowing Cost

Borrowing cost comprises of interest and other costs incurred in connection with the borrowing of the funds. All borrowing costs are recognized in the Statement of Profit and Loss using the effective interest method except to the extent attributable to qualifying Property Plant and Equipment (PPE) which are capitalized to the cost of the related assets. A qualifying PPE is an asset that necessarily takes a substantial period of time to get ready for its intended use or sale. Borrowing cost also includes exchange differences to the extent considered as an adjustment to the borrowing costs.

1.3.14. Research and Development

Research and development cost (other than cost of fixed asset acquired) are charged as an expense in the year in which they are incurred.

1.3.15. Government Grants

Government grants are recognized on a systematic basis when there is reasonable certainty of realization of the same and company will comply with all the conditions attached to them. Revenue grants including subsidy/ rebates are credited to Statement of Profit and Loss under "Other Income or Other Operating Income” or deducted from the related expenses for the period to which these are related.

Grants which are meant for purchase, construction or otherwise acquire non-current assets are recognized as Deferred Income and disclosed under Non-Current Liabilities and transferred to Statement of Profit and Loss on a

systematic basis over the useful life of the respective asset. Grants relating to non-depreciable assets are transferred to the Statement of Profit and Loss over the periods that bear the cost of meeting the obligations related to such grants.

When the Company receives grants of non-monetary assets, the asset and the grant are recorded at fair value amounts and released to profit or loss over the expected useful life in a pattern of consumption of the benefit of the underlying asset i.e., by equal annual instalments.

When loans or similar assistance are provided by governments or related institutions, with an interest rate below the current applicable market rate, the effect of this favorable interest is regarded as a government grant. The loan or assistance is initially recognised and measured at fair value and the government grant is measured as the difference between the initial carrying value of the loan and the proceeds received. The loan is subsequently measured as per the accounting policy applicable to financial liabilities.

1.3.16. Taxes on Income

Income tax expense representing the sum of current tax expenses and the net charge of the deferred taxes is recognized in the income statement except to the extent that it relates to items recognized directly in equity or other comprehensive income.

Current income tax is provided on the taxable income and recognized at the amount expected to be paid to or recovered from the tax authorities, using the tax rates and tax laws that have been enacted or substantively enacted by the end of the reporting period. Taxable Income differs from 'profit before tax' as reported in the Statement of Profit and Loss because of items of income or expense that are taxable or deductible in other years and items that are never taxable or deductible.

Deferred tax is recognized on temporary differences between the carrying amounts of assets and liabilities in the Financial Statements and the corresponding Tax Bases used in the computation of taxable profit. Deferred tax liabilities are generally recognized for all taxable temporary differences. Deferred tax assets are generally recognized for all deductible temporary differences to the extent that it is probable that taxable profits will be available against which those deductible temporary differences can be utilized.

Deferred tax liabilities and assets are measured at the tax rates that are expected to apply in the period in which the liability is settled or the asset realized, based on tax rates (and tax laws) that have been enacted or substantively enacted by the end of the reporting period.

The carrying amount of deferred tax assets is reviewed at the end of each reporting period and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the deferred tax asset to be utilized.

Deferred Tax assets include Minimum Alternative Tax (MAT) paid in accordance with the to set off tax laws in India, which is likely to give future economic benefits in the form of availability of set off against future income tax liability. Accordingly, MAT is recognized as deferred tax asset in the balance sheet when the asset can be measured reliably, and it is probable that the future economic benefit associated with asset will be realized.

Deferred tax assets and liabilities are offset if a legally enforceable right exists to set off Deferred Tax Assets against deferred tax liabilities and the deferred taxes relate to the same taxable entity and same taxation authority.

1.3.17. Earnings Per Share

Basic earnings per share is computed by dividing the net profit attributable to the equity shareholders of the company by the weighted average number of equity shares outstanding during the period. Diluted earnings per share is computed by dividing the net profit attributable to the equity shareholders of the company by the weighted average number of equity shares considered for deriving basic earnings per share and also the weighted average number of equity shares that could have been issued upon conversion of all dilutive potential equity shares.

1.3.18. Non-current Assets Held for Sale

Non-current assets held for sale are measured at the lower of their carrying amount and the fair value less costs to sell. Assets and liabilities classified as held for sale are presented separately in the balance sheet.

The Company classifies non-current assets as held for sale if their carrying amount will be recovered principally through a sale rather than through continuing use. Actions required to complete the sale should indicate that it is unlikely that significant changes to the sale will be made or that the decision to sell will be withdrawn. Management must be committed to the sales expected within one year from the date of classification.

Property, plant and equipment and intangible assets once classified as held for sale are not depreciated or amortized.

1.4. Significant Judgements and Key Sources of Estimation in Applying Accounting Policies

Estimates and judgements are continually evaluated. They are based on historical experience and other factors, including expectations of future events that may have a financial impact on the Company and that are believed to be reasonable under the circumstances. Information about Significant judgements and Key sources of estimation made in applying accounting policies that have the most significant effects on the amounts recognized in the financial statements is included in the following notes:

> Recognition of Deferred Tax Assets: The extent to which deferred tax assets can be recognized is based on an assessment of the probability of the Company's future taxable income against which the deferred tax assets can be utilized. In addition, significant judgement is required in assessing the impact of any legal or economic limits.

> Useful lives of depreciable/amortizable assets (tangible and intangible): Management reviews its estimate of the useful lives of depreciable/ amortizable assets at each reporting date, based on the expected utility of the assets. Uncertainties in these estimates relate to actual normal wear and tear that may change the utility of plant and equipment.

> Defined Benefit Obligation (DBO): Employee benefit obligations are measured on the basis of actuarial assumptions which include mortality and withdrawal rates as well as assumptions concerning future developments in discount rates, medical cost trends, anticipation of future salary increases and the inflation rate. The Company considers that the assumptions used to measure its obligations are appropriate. However, any changes in these assumptions may have a material impact on the resulting calculations.

> Provisions and Contingencies: The assessments undertaken in recognizing provisions and contingencies have been made in accordance with Indian Accounting Standards (Ind AS) 37, 'Provisions, Contingent Liabilities and Contingent Assets' The evaluation of the likelihood of the contingent events is applied best judgement by management regarding the probability of exposure to potential loss.

> Impairment of Financial Assets: The Company reviews its carrying value of its investments carried at an amortized cost annually, or more frequently when there is an indication of impairment. If the recoverable amount is less than its carrying amount, the impairment loss is accounted for.

> Allowances for Doubtful Debts: The Company makes allowances for doubtful debts through appropriate estimations of irrecoverable amounts. The identification of doubtful debts requires the use of judgment and estimates. Where the expectation is different from the original estimate, such a difference will impact the carrying value of the trade and other receivables and doubtful debts expenses in the period in which such estimate has been changed.

> Fair value measurement of financial Instruments: When the fair values of financial assets and financial liabilities recorded in the balance sheet cannot be measured based on quoted prices in active markets, their fair value is measured using valuation techniques including the Discounted Cash Flow model. The input to these models is taken from observable markets where possible, but where this is not feasible, a degree ofjudgement is required in establishing fair values. Judgements include considerations of inputs such as liquidity risk, credit risk and volatility.

1.5. Recent applicable accounting pronouncements

1.5.1. New and revised standards adopted by the Company

On 31st March 2023, Ministry of Corporate Affairs (MCA) has made certain amendments to existing Indian Accounting Standards vide Companies (Indian Accounting Standards) Amendment Rules, 2023. These amendments to the extent relevant to the Company's operations were relating to: Ind AS 1 "Presentation of Financial Statements” which requires the entities to disclose their material accounting policies rather than their significant accounting policies for the year ended 31st March 2024. Ind AS 8 "Accounting Policies, Changes in Accounting Estimates and Errors” whereby a definition of 'accounting estimates' has been introduced and include amendments to help entities distinguish changes in accounting policies from changes in accounting estimates. Further, consequential amendments with respect to the concept of material accounting policies have also been made in "Ind AS 107 "Financial Instruments: Disclosures” and Ind AS 34 "Interim Financial Reporting”

There are other amendments in various standards including Ind AS 101 "First-time Adoption of Indian Accounting Standards”, Ind AS 103"Business Combinations," Ind AS 109"Financial Instruments", Ind AS 115"Revenue from Contracts with Customers”, Ind AS 12 "Income Taxes” which has narrowed the scope of the initial recognition exemption so that it does not apply to transactions that give rise to equal and offsetting temporary differences and Ind AS 102 "Share-based Payment” which have not been listed herein above since these are either not material or relevant to the Company. Revision in these standards did not have material impact on the profit/ loss and earnings per share for the year.

1.5.2. Standards issued but not yet effective

Ministry of Corporate Affairs ("MCA”) has not issued, under the Companies (Indian Accounting Standards) Rules, any new standards or made amendments to the existing standards under the said Rule, which are effective from 1st April, 2024 and applicable to the Company.

November 2009. As on 31st March 2018, M/s ACE Trust and M/s HNG Trust were holding 68,44,360 equity shares and 77,97,240 equity shares of ' 2 each of the Company respectively. In view of these shares being held for the sole beneficiary for the Company.The book value of the same was reduced from Shareholder's Fund as a reduction from General Reserve amounting to ' 6,014.85 Lakhs. Any collections on from these Trusts is credited to Capital Reserve. During the earlier years, some of the lenders have sold the pledged equity shares of the Company held by these Trusts and the same has been adjusted against the principal obligation of the debt amounting to ' 1,716.89 lakhs by crediting Capital Reserve. The shares with M/s ACE Trust and M/s HNG Trust as on 31st March 2024 are 13,71,973 and 33,47,240 respectively.

2.12.2 Securities Premium represents the amount received in excess of face value of securities. The same shall be utilised in accordance with the provision of the Act.

2.12.3 General Reserve is created by an appropriation from one component of equity (generally Retained Earning) to another, not being an item of other comprehensive income. The same can be utilised in accordance with provisions of the Companies Act, 2013.

2.12.4 Retained Earnings generally represent the undistributed profits/ amount of accumulated earnings of the Company. It includes ' 31,059.53 Lakhs (Previous Year - ' 31,093.13 Lakhs) which is not available for distribution as dividend represented by change in carrying amount of Freehold and Leasehold Land upon their measurement at fair value as deemed cost on the date of transition to Ind AS i.e. 1st April 2015. Additional Depreciation due to Fair Value Measurement to the extent provided each year becomes available for distribution as dividend. It includes Other Comprehensive Income of ' (356.85) Lakhs (Previous Year ' (552.87) Lakhs) representing remeasurement of defined benefits plan.

2.18.5 Nature of Security for borrowings:

A) Non-Convertible Debentures are secured by first charge ranking pari-passu on all immovable properties by way of equitable mortgage and hypothecation of all moveable properties both present and future of the Company and second charge ranking pari-passu on entire current assets of the Company both present and future.

B) Term Loans from Banks and Financial Institution are secured by first charge ranking pari-passu on all immovable properties by way of equitable mortgage and hypothecation of all moveable properties both present and future of the Company and second charge ranking pari-passu on entire current assets of the Company, both present and future. Further Corporate Loan from Banks are additionally secured by pledged of equity shares of the company held by promoters and promoters group.

C) Term Loan from Others represents Loan assigned to Asset Reconstruction Company (ARC). The same are secured by first charge ranking pari-passu on all immovable properties by way of equitable mortgage and hypothecation of all moveable properties both present and future of the Company and second charge ranking pari-passu on entire current assets of the Company, both present and future, other than the Loan assigned to EARC Trust SC 404 and EARC Trust SC-367.

D) Loan Assigned to EARC Trust SC-404 and EARC Trusr SC-367 are secured by pledge of equity shares held by M/s HNG Trust and M/s ACE Trust and second charge ranking pari-passu on all immovable properties by way of equitable mortgage and hypothecation of all moveable properties both present and future of the Company.

E) Term Loan from Banks, Financial Institution and Others includes loans further secured by the pledge against treasury shares of the Company held by HNG Trust and ACE Trust (Refer Note no. 2.12.1A and 2.18.7).

F) Additional Security to lenders who have agreed to Corrective Action Plan (CAP) :

(i) Pledge of 51% of the Company's Shareholding held by Promoter and Promoter Group on pari passu basis with other lenders.

(ii) Personal Guarantee of Mr Sanjay Somany and Mr Mukul Somany. (Invoked by DBS Bank Limited on 5th April 2022)

G) Immovable properties mentioned in 2.18.5(A),(B),(C) & (D) above excludes certain plots of land having book value of ' 3,326 Lakhs (Previous Year ' 3,326 Lakhs)

to in the financial statements. Necessary adjustments shall be made on the receipt of the necessary documents confirming the transaction.

In absence of detailed documentation from respective lenders for the adjustment of the aforementioned appropriation of the funds, the company has decided to adjust the same in the books in the following manner:

a. If the lender has provided both long term and short term facilities, then the amount appropriated have been adjusted against the short term facilities first and if balance remains then with long term facility.

b. If the lender is having any one facility only, then with the outstanding balance.

c. Post appropriation of the above mentioned amount the interest has been calculated by the company on net outstanding. Accordingly the interest from the date of appropriation till the CIRP date and from CIRP date till the reporting date amouting to ' 10,613.56 Lakhs and ' 12,408.28 Lakhs respectively has not been recognized in the books.

2.18.8 Outstanding ECB borrowing amounting to USD 641.27 Lakhs as on 31st March 2024 (Previous Year USD 641.27 Lakhs) has been reinstated at an exchange rate of ' 74.7635 per USD being rate as prescribed in www.fbil.org.in as on 21st October 2021 being date of admission for CIRP.

2.18.9 Post initiation of CIRP, the company has not recognized interest on the outstanding borrowings (post appropriation). The interest for the year not recognized amounts to ' 20,134.51 Lakhs and for the entire period post CIRP date amounts to ' 48,773.78 Lakhs.

2.18.10 Summary of Default in repayment of borrowings along with Interest

2.40 The Company had reported losses during previous years. Hence, the net worth of the Company has been eroded. There is strain on the working capital and operations of the Company and it is undergoing significant financial stress. As stated in Note No. 1, CIRP was initiated in respect of the Company w.e.f 21st October 2021. The Company has assessed that the use of the going concern assumption is appropriate in the circumstances and hence, these financial statements have been prepared on a going concern assumption basis as per below:

a) The Code requires the RP to, among other things, run the Company as a going concern during CIRP

b) The RP, in consultation with the Committee of Creditors ('CoC') of the Company, in accordance with the provisions of the IBC, is making all endeavors to run the Company as a going concern along with the assistance of the management of the company basis the future business outlook and the continuity in the operations of the company. Pending the completion of the CIRP process, these financial statements have been prepared on a going concern basis.

2.41 POST-EMPLOYMENT BENEFIT PLANS

The Company has a defined benefit gratuity plan. Every employee who has completed five years or more of service is entitled to Gratuity on terms not less favourable than the provisions of The Payment of Gratuity Act, 1972. The scheme is funded with the insurance companies. The Company also extends benefit of compensated absences to the employees, whereby they are eligible to carry forward their entitlement of earned leave for encashment upon retirement/ separation. This is an unfunded plan. The Company contributes to government administered fund whereby, few employees are entitled to benefits as per Provident Fund Act, 1952 . Such contributions are defined as a defined contribution plan.

As per Ind AS "Employee Benefits” (Ind AS - 19), the disclosures of Employee Benefits as defined in the Standard are given below:

b) Defined Benefit Plan

The employees' gratuity fund scheme managed by Insurers is a defined benefit plan. The present value of obligation is determined based on independent actuarial valuation using the Projected Unit Credit Method, which recognises each period of service as giving rise to additional unit of employee benefit entitlement and measures each unit separately to build up the final obligation. The gratuity plan is governed by the Payment of Gratuity Act, 1972. Under the act, employee who has completed five years of service is entitled to specific benefit. The level of benefits provided depends on the member's length of service and salary at retirement age. The Company has a separate Provident Fund Trust (funded) whereby, certain employees are entitled to benefits as per Provident Fund Act, 1952 / Trust Deed. Any shortfall for the Trust is borne by the Company, hence the same is treated as a defined benefit scheme.

VIII. Risks to the Benefit provider (i.e. for employer)

Parameter risk: Actuarial valuation is done basis some assumptions like salary inflation, discount rate and withdrawal assumptions. In case the actual experience varies from the assumptions, fund may be Insufficient to pay off the Liabilities. Similarly, reduction in discount rate in subsequent future years can increase the plan's liability. Further, actual withdrawals may be lower or higher than what was assumed in the valuation, which may also impact the plan's liability.

Risk of illiquid assets: Another risk is that the funds, although sufficient, are not available when they are required to finance the benefits. This may be due to assets being locked for longer period or in illiquid assets.

Risk of benefit change: There may be a risk that a benefit promised is changed or is changeable within the terms of the contract. For e.g. the prevailing Act / Regulation may increase the benefits payable under defined benefit plans.

(ii) Fair Value Technique

The fair values of the financial assets and liabilities are included at the amount that would be received by selling an asset or paid to transfer a liability in an orderly transaction between participants at the measurement date. The following methods and assumptions were used to estimate the fair values :

a) The fair value of cash and cash equivalents, trade receivables, trade payables, current financial liabilities and borrowings approximate their carrying amount largely due to the short-term nature of these instruments. The board considers that the carrying amounts of financial assets and financial liabilities recognised at cost/ amortised costs in the financial statements approximates their fair values.

b) Unquoted investments in equity shares have been valued based on the amount available to shareholder's as per the latest audited financial statements wherever available. Further, external observable inputs or assumptions have been used in such valuation of equity shares in other cases. Other investments are valued based on inputs that are directly or indirectly observable in the market place

2.44 Financial Risk Management Objectives and policies

The Company's Financial Liabilities comprise Borrowings, Liability for Capital Goods, Trade and Other payables and Other Financial liabilities. The main purpose of these Financial Liabilities is to finance the Company's operations. The Company's Financial Assets include Trade and Other Receivables, Cash and Cash Equivalents, Investments at Cost/ Fair Value and Deposits and Other Financial Assets that derive mainly from its operation.

The Company is exposed to market risk, credit risk and liquidity risk. The Company's senior management oversees the management of these risks. The Company's financial risks are governed by appropriate policies and procedures and that financial risks are identified, measured and managed in accordance with the Company's policies and risk objectives. It is the Company's policy that no trading in derivatives for speculative purposes may be undertaken. The Board of Directors reviews and agrees policies for managing each of these risks, which are summarised below:

I) 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 prices. Market risk comprises two types of risk: currency risk and other price risk, such as raw material and fuel price risk . Financial instruments affected by market risk include FVTPL investments, trade payables, trade receivables, etc.

(a) Foreign currency risk

The company undertakes transactions denominated in different foreign currencies primarily in USD and consequently exposed to exchange rate fluctuations. Exchange Rate exposures are managed within approved policy parameters. The carrying amounts of the company's foreign currency denominated monetary assets and monetary liabilities at the end

of the reporting period are as disclosed belo\w

The above sensitivity do not include foreign currency risk on borrowings amounting to USD 641.27 Lakhs (Previous year USD 641.27 Lakhs) which are capitalised with the Property, Plant and Equipment and not charged to Statement of Profit and Loss.

(b) 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 the risk of changes in market interest rates relates primarily to the Company's long-term debt obligations with floating interest rates.

Corporate Insolvency Resolution Process (CIRP) is being initiated on the Company effective 21st October, 2021 and accordingly the Company is under a moratorium period and is not exposed to any interest rate. Accordingly interest rate sensitivity is not required to be disclosed.

(c) Raw Material and Fuel Price Risk

The company is impacted by the price volatility of certain commodities like raw materials, packing materials and fuel. The Company is impacted by the price volatility of Fuels like Gas, Furnace Oil, etc. To minimize the risk related to fuel price change, the Company uses alternate fuel based on their market prices. The Company swaps and uses alternate fuels based on the cost of energy efficiency and, hence quantification of sensitivity is not practical. To mitigate the volatility in the market price of major raw materials, the company has entered into fixed price contract.

II) Credit risks

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 financial activities, including borrowing from banks and financial institutions.

Trade receivables

Credit quality of a customer is assessed based on an appraisal of each customer and individual credit limits are defined in accordance with this assessment and performance of the customer. Outstanding customer receivables are regularly monitored.

An impairment analysis is performed at each reporting date on an individual basis for all the customers. The maximum exposure to credit risk at the reporting date is the carrying value of trade receivables disclosed in Note 2.6. The Company has evaluated the concentration of risk with respect to trade receivables as low,as there is no single large customer creating significant risk.

III) Liquidity Risk

The Company's objective is to at all times maintain optimum level of liquidity to meet its cash and collateral requirement at all times. The need of the funds of the company are being met by internal accrual, Operational Creditors and borrowings as on 21st October 2021, being the date of CIRP admission.

The table below provides details regarding the maturities of significant financial liabilities as of 31st March 2024

2.46 CAPITAL MANAGEMENT

For the purpose of the Company's capital management, capital includes issued equity capital and all other equity reserves attributable to the equity shareholders of the Company. The primary objective of the Company's capital management is to maximise the shareholder value and parallely ensuring the regulations and objectives of IBC Act 2016 are complied with. The Company manages its capital structure and makes adjustments in line with changes in economic conditions.To maintain or adjust the capital structure, the Company may adjust the dividend payment to shareholders, return capital to shareholders or issue new shares or sale assets to reduce debt. The Company monitors capital using a gearing ratio, which is net debt divided by total capital plus net debt. The company includes within net debt, interest bearing long term loans and borrowings less cash and cash equivalents.

The capital structure of The Company consists of Total Equity of ' (83229.31) Lakhs (Previous Year (99,762.85) lakhs) (Refer Note No. 2.11 & 2.12).

OTHER INFORMATION

2.47 As per the IBC, the RP has received, collated, verified the claims submitted by the creditors of the Company till 3rd October 2022. The RP received claims amounting to ' 3,54,347 lakhs from Financial Creditors (including ' 20,838 lakhs from unsecured financial creditors) and after verification admitted a sum of ' 3,54,331 lakhs (including ' 20,838 lakhs from unsecured financial creditors) as claims of Financial creditors having books balance of ' 3,10,012 lakhs and remaining amount of ' 16 lakhs has been rejected.Further, RP has received claims from the various classes of operational/ other creditors totalling to ' 29,551 lakhs out of which ' 5,327 lakhs has been rejected and claims of ' 24,224 lakhs has been admitted against the company as per the provisions of IBC 2016. Pending reconciliation of the claims admitted with the books of accounts, the impact of such claims, if any, that may arise has not been considered in the preparation of the Financial Statement as on 31st March 2024.

2.48 It may be further noted that in consonance with the stipulations contained in Section 14 of the Code, a moratorium has been declared vide the Order dated 21st October 2021 passed by the Hon'ble NCLT, inter alia, prohibiting the following:

a. the institution of suits or continuation of pending suits or proceedings against the Corporate Debtor including execution of any judgement, decree or other in any court of law, tribunal, arbitration panel or other authority;

b. transferring, encumbering, alienating or disposing of by the Corporate Debtor any of its assets or any legal right or beneficial interest therein;

c. any action to foreclose, recover or enforce any security interest created by the Corporate Debtor in respect of its property including any action under the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002;

d. the recovery of any property by an owner or lessor where such property is occupied by or in the possession of the Corporate Debtor.

2.49 As a part of the CIRP, the RP had appointed BDO India LLP for conducting transaction audit as per section 43, 45, 50 and 66 of the Code. The RP has filed an application under section 66 of the code with the Hon'ble NCLT, Kolkata bench and the matter is pending for decision till this date.

2.50 As part of the ongoing CIRP process the RP has appointed, two (2) independent valuers to conduct the valuation of the assets of the Company and assets collateral held as securities as required under the provisions of the Code.

2.51 As per the provision of the Code, the RP had initiated the resolution process for the Company. On 28th October 2022, the resolution plan submitted by AGI Greenpac Limited (AGI) have been approved by the CoC and accordingly, the RP had filed the plan for approval with the Hon'ble NCLT, Kolkata Bench on 5th November 2022 which is pending as on date. Pending this, related applications were filed before NCLAT, New Delhi which have been dismissed. Consequent to this, applications were filed before the Hon'ble Supreme Court of India and the matter is still pending before the apex court. The next date of hearing before Supreme Court of India is 23rd July 2024 and next date of hearing at NCLT, Kolkata Bench is 3rd July 2024 .

2.52 Certain debit and credit balances including borrowings and interest thereupon, clearing account (other than interunit balances), trade and other payables, advance from customers, loans and advances, other current assets and certain other liabilities are subject to reconciliation with individual details and balances and confirmation thereof.

2.53 There are indicators present in the company both internal and external for impairment testing. During the current year, company has appointed an external agency for impairment and based on the outcome of the report of the external agency, there are no adjustment on account of impairment has been considered necessary.

2.54 None of the Loans or Advances in the nature of loans as at 31st March, 2024 and as at 31st March, 2023 are granted to promoters, directors, KMPs and the related parties (as defined under Companies Act, 2013,) either severally or jointly with any other person, that are: (a) repayable on demand or (b) without specifying any terms or period of repayment.

2.55 All the Registration of Charges or Satisfaction of Charges required to be filed during the year with the Registrar of Companies are completed within the statutory period.

2.56 The company has complied with the number of layers prescribed under clause (87) of section 2 of the Companies Act read with Companies (Restriction on number of Layers) Rules, 2017.

2.57 No transactions have been surrendered or disclosed, previously unrecorded in the books of accounts, as income during the year in the tax assessments under the Income Tax Act, 1961.

2.58 The Company has not traded or invested in Crypto Currency or Virtual Currency during the current financial year.

2.59 The company has not been declared wilful defaulter by any bank or financial Institution or other lender.

2.61 The Company has not advanced or loaned or invested funds (either borrowed funds or share premium or any other sources or kind of funds) to any other person(s) or entity(ies), including foreign entities (Intermediaries) with the understanding (whether recorded in writing or otherwise) that the Intermediary shall (i) 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 (ii) provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries.

2.62 The Company has not received any fund from any person(s) or entity(ies), including foreign entities (Funding Party) with the understanding (whether recorded in writing or otherwise) that the company shall (i) 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 (ii) provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

2.65 Figures of the previous periods have been regrouped/ re-arranged wherever considered necessary to make them comparable with those of current year's figures.

Accompanying notes 1 to 2.65 are an integral part of the Financial Statements. For and on behalf of the Board

As per our report of even date attached

For Lodha & Co LLP For J K V S & CO Jit Roy Choudhury Bimal Kumar Garodia Mukul Somany

Chartered Accountants Chartered Accountants Company Secretary President and Director

FRN:301051E/E300284 FRN : 318086E Place : Kolkata Chief Financial Officer DIN: 00124625

Place : Kolkata Place : Kolkata

Powers of the Board are suspended from the Insolvency Commencement Date

Indranil Chaudhuri Ajay Kumar Girish Siriram Juneja

Partner Partner Resolution Professional

Membership No. 058940 Membership No. 068756 Taken on records

Place : Kolkata Place : Kolkata Place : Mumbai

Date: 28th May 2024