(i) Rights, preferences and restriction attached to shares

The Company has only one class of equity shares having a par value of Re. 1 per share. Each shareholder is eligible for one vote per share held. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting, except in case of interim dividend. In the event of liquidation, the equity shareholders are eligible to receive the remaining assets of the Company after distribution of all preferential amounts, in proportion to their shareholding. The distribution will be in proportion to the number of equity shares held by the shareholders.

(a) Above term loans outstanding except Bajaj Finance, AKA Bank & Vehicle Loans from banks are secured as follows:-

(1) 1st pari passu charge:- Hypothecation of entire fixed assets (except assets which are exclusively

charged by other lenders) of the Company (both present and future) including equitable mortgage.

(2) 2nd pari passu charge:- Hypothecation of stocks of raw material, stock in process and finished goods, receivables/ book debts and other current assets (both present and future).

(b) Term loan from Bajaj Finance is primarily secured by way of hypothecation of moveable assets specifically financed by them.

Above term loans are further personally guaranteed by the Chairman Cum Managing Director and Joint Managing Director of the company.

(c) Vehicle loans are primarily secured by way of hypothecation of moveable assets specifically financed by them.

(d) Company entered into a swap agreement amounting to INR 3018.13 lacs with loan amounting to Euro 34,50,707. The impact of Mark to market gain/(loss) under the Swap agreement has been separately provided and charged to statement of profit and loss account.

(e) The loan due to AKA Bank, Frankfurt, Germany is an external commercial borrowing amounting to 81,59,915.44 EURO at the rate of 1.40% EURIBOR.

(f) Instalments for repayment of term loans due to be paid in the next year amounting Rs. 12,277.74 lacs (2021-22 Rs. 9,607.54 Lacs) have been treated as current liability and are not included in long term liability.

(g) India ratings and research has assigned a rating of A to the above term loans.

(h) Terms of repayment:

Normal Repayment Period : 4-6 Years

Interest rates on Term Loans are in range of 1.4% to 9.25%.

There was no default in repayments during financial year 2022-23 and previous year.

39. Disclosures regarding leases as per Ind As 116 'Leases'

A. Assets taken on lease

The Company has leases for office building, and land etc. With the exception of shortterm leases and leases of low-value underlying assets, each lease is reflected on the balance sheet as a right-of-use asset and a lease liability. Variable lease payments which do not depend on an index or a rate are excluded from the initial measurement of the lease liability and right of use assets.

If ownership of the leased asset transfers to the Company at the end of the lease term or the cost reflects the exercise of a purchase option, depreciation is calculated using the estimated useful life of the asset.

B. The Company does not face a significant liquidity risk with regard to its lease liabilities as the current assets are sufficient to meet the obligations related to lease liabilities as and when they fall due.

Rental expenses recorded for short-term leases and low value leases is Rs. 59.03 lacs during year ended March 31, 2023 (March 31, 2022 Rs. 87.51 lacs).

40. Employee Benefit Plans

A. Defined Contribution Plans

The Company makes contribution towards employees' state insurance, employees' provident fund, and Labour welfare fund. Under the schemes, the Company is required to contribute a specified percentage of payroll cost, as specified in the rules of the schemes, to these defined contribution schemes. The Company recognized Rs. 380.60 lacs (March 31, 2022 Rs. 267.03 lacs) during the year as expense towards contribution to these plans.

B. Defined benefit plans and other long-term benefits

a) Gratuity

The Company has a defined benefit gratuity plan, which is regulated as per the provisions of Payment of Gratuity Act, 1972. The scheme is unfunded. The liability for the same is recognized on the basis of actuarial valuation.

b) Leave Encashment

The Company has a defined benefit leave encashment plan for its employees. Under this plan, they are entitled to encashment of earned leaves subject to certain limits and other conditions specified for the same. The liabilities towards leave encashment have been provided on the basis of actuarial valuation.

These plans typically expose the company to actuarial risks such as: investment risk, interest rate risk, longevity risk and salary risk.

Investment Risk The present value of the defined benefit plan liability (denominated in Indian Rupee) is calculated using a discount rate which is determined by reference to market yields at the end of the reporting period on government bonds.

Interest Risk A decrease in the bond interest rate will increase the plan liability.

Longevity Risk The present value of the defined benefit plan liability is calculated by reference to the best estimate of the mortality of plan participants both during and after their employment. An increase in the

life's expectancy of the plan participants will increase the plan's liability.

Salary Risk The present value of the defined benefit plan liability is calculated

by reference to the future salaries of plan participants. As such, an increase in the salary of the plan participants will increase the plan's liability.

The most recent actuarial valuation and the present value of the defined benefit obligation were carried out as at March 31, 2023 by Mr. Ashok Kumar Garg. The present value of the defined benefit obligation, and the related current service cost and past service cost, were measured using the projected unit credit method.

Sensitivity Analysis (Based on most likely/possible changes in assumptions used)

Gratuity

If the discount rate is 100 basis points higher (lower), the defined benefit obligation would decrease by Rs. 59.72 lacs (increase by Rs.68.35 lacs) [as at March 31, 2022: decrease by Rs. 53.88 lacs (increase by Rs.61.71 lacs)].

If the expected salary growth increases (decreases) by 100 basis points, the defined benefit obligation would increase by Rs. 68.44 lacs (decrease by Rs. 60.61 lacs) [as at March 31, 2022: increase by Rs. 61.53 lacs (decrease by Rs. 54.44 lacs)].

The estimated term of the benefit obligations in case of gratuity is 13 years (As at March 31, 2022:13 years )

Leave Encashment

If the discount rate is 100 basis points higher (lower), the defined benefit obligation would decrease by Rs. 26.22 lacs (increase by Rs. 30.43 lacs) [as at March 31, 2022: decrease by Rs. 28.01 lacs (increase by Rs. 32.88 lacs)].

If the expected salary growth increases (decreases) by 100 basis points, the defined benefit obligation would increase by Rs. 30.90 lacs [decrease by Rs. 27.04 lacs) [as at March 31, 2022: increase by

Rs. 33.29 lacs (decrease by Rs.28.81 lacs)].

The estimated term of the benefit obligations in case of leave encashment is 16 years (As at March 31, 2022: 18 years)

The sensitivity analysis presented above may not be representative of the actual change in the defined benefit obligation as it is unlikely that the change in assumptions would occur in isolation of one another as some of the assumptions may be correlated.

Furthermore, in presenting the above sensitivity analysis, the present value of the defined benefit obligation has been calculated using the projected unit credit method at the end of the reporting period, which is the same as that applied in calculating the defined benefit obligation liability recognised in the balance sheet.

There was no change in the methods and assumptions used in preparing the sensitivity analysis from prior years.

There has been no change in the process used by the Company to manage its risks from prior periods.

41. Segment Information

Information reported to the Chief Operating Decision Maker (CODM) i.e., Managing director for the purposes of resource allocation and assessment of segment performance focuses on the

types of goods or services delivered or provided. The directors of the Company have chosen to organise the Company around differences in products and services. No operating segments have been aggregated in arriving at the reportable segments of the Company.

Specifically, the Group's reportable segments under Ind AS 108 are as follows

1. Paper division

2. Yarn and cotton division

3. Cogeneration division

4. Agriculture division

5. Solar division

Note: The note should state the judgements made by management in applying the aggregation criteria. This includes a brief description of the operating segments that have been aggregated in this way and the economic indicators that have been assessed in determining that the aggregated operating segments share similar economic characteristics.

The accounting policies of the reportable segments are the same as the Company's accounting policies described in Note 1. Segment profit represents the profit before tax earned by each segment without allocation of central administration costs and directors' salaries, investment income, other gains and losses, as well as finance costs. This is the measure reported to the chief operating decision maker for the purposes of resource allocation and assessment of segment performance.

Revenue and expenses directly identifiable to the segments have been allocated to the

relatively primary reportable segments.

For the purposes of monitoring segment performance and allocating resources between segments:

a) All assets are allocated to reportable segment.

b) All liabilities are allocated to reportable segments other than Rs. 1,07,529.62 lacs (As at March 31, 2022: Rs. 97,090.57 lacs) on account of share capital, other equity, deferred tax liabilities and other liabilities of corporate office.

Capital Expenditure includes addition during the year to property, plant and equipment, and capital work-in-progress.

Geographical information:

42. Financial Instruments

42.1 Capital Management

The Company manages its capital to ensure that it will be able to continue as a going concern while maximising the return to stakeholders through the optimization of the capital structure.

The capital structure of Company consist of equity and external borrowings.

Gearing ratio

42.3 Financial risk management objectives

The Company's corporate treasury function monitors and manages the financial risks relating to the operations of the Company by analyzing exposures by degree and magnitude of risks. These risks include market risk (including currency risk, interest

rate risk and price risk), credit risk and liquidity risk.

Market Risk

The Company's activities expose it primarily to the financial risks of changes in foreign currency exchange rates and interest rates.

There has been no change to the Company's exposure to market risks or the manner in which these risks are being managed and measured.

A. Currency risk

(a) Foreign Currency risk management

The Company undertakes transactions denominated in foreign currencies; consequently, exposures to exchange

rate fluctuations arise. The Company's exposure to currency risk relates primarily to the Company's operating activities and borrowings when transactions are denominated in a different currency from the Company's functional currency.

The carrying amounts of the company's foreign currency denominated monetary assets and monetary liabilities at the end of the reporting period.

(b) Foreign Currency sensitivity analysis

For the year ended March 31, 2023, every one rupee depreciation/appreciation in the exchange rate against U.S. dollar, might have affected the Company's incremental operating margins approximately by 0.12% (previous year 0.08%) and for every one rupee depreciation/appreciation in the exchange rate against Euro, might have affected the Company's incremental operating margins approximately by 0.03% (previous year 0.07%).

B. Interest risk

Interest rate risk management

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of change in market interest rates.The company's exposure to the risk of changes in market intrerest rates relates primarily to the company's long term debt obligations with floating interest rates.

Interest rate sensitivity analysis

For the year ended March 31, 2023, every 1 percent increase/ decrease in weighted average bank interest rate might have affected the Company's incremental operating margins approximately by 0.17% (previous year 0.23%).

C. Other price risks

The Company is exposed to equity price risks arising from equity investments. Equity investments are held for strategic rather than trading purposes. The Company doesn't actively trade these investments.

Credit Risk

Credit risk refers to the risk that a counterparty will default on its contractual obligations resulting in financial loss to the Company. The Company has limited exposure to credit risk in respect of trade receivables. The Company's bank balances are held with a reputed and creditworthy banking institution resulting to limited credit risk from the counterparties.

Liquidity risk management

The Company manages liquidity risk by maintaining adequate reserves and continuously monitoring forecast and actual cash flows and by matching the maturity profiles of financial assets and liabilities.

The table below provides details regarding the contractual maturities of financial liabilites including estimated interest payments as at March 31, 2023:

42. STATEMENT OF TRANSACTIONS WITH RELATED PARTIES

Name of related party and nature of related party relationship (with which the company has any transaction during the year)

A. Individual owning directly or indirectly substantial interest in the voting power of the Company

T.C. Spinners Private Limited Satia Paper Mills Private Limited

YCD Industries Limited (Formerly known as Bhandari Export Industries Limited)

RYM Realtors Private Limited

Commitments for expenditure

Estimated amounts of contracts remaining to be executed on capital account, net of advances - Rs. Nil (Previous Year Nil).

45. Dividend

During the financial year 2022-23, the Board of Directors of the Company had declared and paid interim dividend of 20% each (Re. 0.20 per Equity Share of Rs. 1/- each). Further, the Board of Directors have recommended a final dividend of 20% (Re. 0.20 per Equity Share of Rs. 1/- each) for the financial year 2022-2023, subject to the approval of the shareholders in the ensuing Annual General Meeting of the Company and is not recognised as a liability as at March 31, 2023. During the financial year 2021-22, the Board of Directors had recommended a final dividend of 20% each (Rs. 0.20 per Equity Share of f 1/-each).

46. The Particulars of dues to Micro, Small and Medium Enterprises under Micro, Small and Medium Enterprises Development Act, 2006 (“MSMED Act”)

48. Events after the reporting period

There were no adjusting events occurred subsequent to the balance sheet date and before date of approval of financial statements.

49. Disclosure as per Ind AS 36 'Impairment of Assets'

The Company has reviewed the carrying amount of its tangible and intangible

assets (being a cash generating unit) with its future present value of cash flows and there has been no indication of impairment of the carrying amount of the Company's such Assets taking consideration into external and internal sources of information.

50. Fair Value Measurement Fair Valuation Techniques and Inputs used - recurring Items

The fair values of the financial assets and financial liabilities included in the level 3 category above have been determined in accordance with generally accepted pricing models based on a discounted cash flow analysis, with the most significant inputs being the discount rate that reflects the credit risk of counterparties.

50. Disclosure as per Ind AS 1 'Presentation of financial statements' and Disclosure as per Ind AS 8 - 'Accounting Policies, Changes in Accounting Estimates and Errors'.

(a) Changes in significant accounting estimates:

In the current financial year, to improve the appropriateness of the allocation of the deprecation expense on its property, plant and equipment over the remaining useful life of the assets, the Company has changed the estimate of residual value from 10% to 5%, which is inline with Schedule II to the Companies Act 2013. As a result of this change in estimate, the accumulated depreciation has been adjusted by Rs. 8,295.82 lacs upto March 31, 2023 and Rs. 5,903.64 lacs upto March 31, 2022 in accordance with Ind AS 8 'Accounting Policies, Changes in Accounting Estimates and Errors'.

It is pertinent to note that this change in depreciation estimate has been applied prospectively, and prior periods have not been restated. The Company believes that this change will lead to a more appropriate allocation of depreciation expense over the remaining useful life of the assets and is consistent with its policy of continuously reviewing and updating accounting estimates as necessary.

Further, due to the higher depreciation, higher deferred tax asset is created which correspondingly reduced the tax expense for the financial year 2022-23.

(b) Certain other changes have also been made in the policies for improved disclosures. There is no impact on the financial statements due to these changes.

The Company earns a return on investment

ranging from 5.35% to 7.25% p.a. on fixed

deposit.

Reasons for variances

a. Due to the reason increase in total equity and reduction of in debts.

b. Reflects better operational performance.

c. Due to increase in revenue from operations and decrease in average inventory, in the current year.

d. During the year, there has been a reduction in average trade payables and with higher sales, material consumption for the year has also increased resulting into an increase in the trade payable turnover ratio.

52. Additional disclosures relating to the requirement of Schedule III

a) The Company does not have any benami property, where any proceeding has been initiated or pending against the Company for holding any benami property.

b) The Company has not traded or invested in Crypto currency or Virtual Currency during the financial year.

c) The Company has 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;

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.

d) 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.

Nature of CSR activities:

Conservation of natural resources, Promotion of Education, Health care, rural development and livelihood interventions, Disaster relief, Digital Literacy amongst others.

Note: The set off available in the succeeding

years is not recognised as an asset as a

matter of prudence.

f) The Company does not have any such transaction which is not recorded in the books of accounts that has been surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961 (such as search, survey or any other relevant provisions of the Income Tax Act, 1961).

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

h) The Company has not been declared wilful defaulter by any bank or financial institution or government or any government authority.

i) The Company does not have any charges or satisfaction which is yet to be registered with Registrar of Companies (ROC) beyond the statutory period.

j) Quarterly returns or statements of current assets filed by the Company with banks and financial institutions are in agreement with the books of accounts.

k) The Company has not carried out revaluation of items of property, plant and equipment during the year and

accordingly the disclosure as to whether the revaluation is based on the valuation by a registered valuer as defined under Rule 2 of the Companies (Registered Valuers and Valuation) Rules, 2017 is not applicable.

l) The Company has used the borrowings from banks and financial statements for the specific purpose for which it was obtained.

m) The title deeds of all immovable properties (other than immovable properties where the Company is the lessee, and the lease agreements are duly executed in favour of the Company) disclosed in the financial statements included in property, plant and equipment and capital work in progress are held in the name of the Company as at the balance sheet date.

n) The Company does not have any transactions with companies which are struck off under Section 288 of the Companies Act 2013 or Section 560 of Companies Act, 1956 during the year ended March 31, 2023 and the year ended March 31, 2022.

52.The figures for the previous year have been reclassified / regrouped wherever necessary including for amendments relating to Schedule III of the Companies Act, 2013 for better understanding and comparability.