No funds have been advanced or loaned or invested (either from borrowed funds or share premium or any other sources or kind of funds) by the Company to or in any other person(s) or entity(ies), including foreign entities (“Intermediaries”) with the understanding, whether recorded in writing or otherwise, that the Intermediary shall lend or invest in party identified by or on behalf of the Company (Ultimate Beneficiaries). The Company has not received any fund from any party(s) (Funding Party) with the understanding that the Company shall whether, directly or indirectly lend or invest in other persons or entities identified by or on behalf of the Company (“Ultimate Beneficiaries”) or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

No funds have been advanced or loaned or invested (either from borrowed funds or share premium or any other sources or kind of funds) by the Company to or in any other person(s) or entity(ies), including foreign entities (“Intermediaries”) with the understanding, whether recorded in writing or otherwise, that the Intermediary shall lend or invest in party identified by or on behalf of the Company (Ultimate Beneficiaries). The Company has not received any fund from any party(s) (Funding Party) with the understanding that the Company shall whether, directly or indirectly lend or invest in other persons or entities identified by or on behalf of the Company (“Ultimate Beneficiaries”) or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

d Terms/ Rights attached to equity shares :

The company has only one class of equity shares having a par value of 10/- per share. Each holder of equity shares is entitled to one vote per share. 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.

e Preferential issue

The Company has issued 15,00,000 warrants of Rs. 130 each convertible into equity shares on preferential basis to promoter, promoter group and other specified person categorized as public and received up-front subscription of Rs. 32.50 per warrant aggregating Rs. 487.50 Lakhs. The promoter and promoter group has exercised the option for conversion of warrant into equity shares for their total 5,85,000 warrants by paying Rs. 97.50 per warrant aggregating Rs. 570.38 Lakhs. Thus 5,85,000 shares of Rs. 10 each were allotted to promoters and promoters group at a premium of Rs. 120. per share on 26th March, 2022.The other specified person categorized as public has exercised the option for conversion of warrant into equity shares for their total 3,07,500 warrants by paying Rs. 97.50 per warrant aggregating Rs. 399.75 Lakhs. Thus 3,07,500 shares of Rs. 10 each were allotted to other specified person categorized as public at a premium of Rs. 120 per share on 24th June, 2022.The other specified person categorized as public has exercised the option for conversion of warrant into equity shares for their total 6,07,500 warrants by paying Rs. 97.50 per warrant aggregating Rs. 789.75 Lakhs. Thus 6,07,500 shares of Rs. 10 each were allotted to other specified person categorized as public at a premium ofRs. 120 per share on 17th September, 2022.

f Capital Management

Equity share capital and other equity are considered for the purpose of Company’s capital management. The Company’s objective for capital management is to maximise shareholder value, safeguard business continuity and support the growth of the Company. The Company determines the capital requirement based on annual operating plans and long-term and other strategic investment plans. The management and the Board of Directors monitor the return on capital as well as the level of dividends to shareholders.

g Earnings Per Share

Basic earnings per share is calculated by dividing the net profit after tax by the weighted average number of equity shares outstanding during the year adjusted for bonus element in equity share.

Diluted earnings per share adjusts the figures used in determination of basic earnings per share to take into account the conversion of all dilutive potential equity shares. Dilutive potential equity shares are deemed converted as at the beginning of the period unless issued at a later date.

h Terms of securities convertible into equity shares

The Company has issued 15,00,000 warrants of Rs. 130.00 each convertible into equity share on preferential basis to promoter, promoter group and other specified person categorized as public and received up front subscription of Rs. 32.50 per warrant aggregating Rs. 487.50 Lakhs. The promoter and promoter group has exercised the option for conversion of warrant into equity shares for their total 5,85,000 warrants by paying Rs. 97.50 per warrant aggregating Rs. 570.38 Lakhs. Thus 9,15,000 share warrant are outstanding at carrying value of Rs. 297.38 Lakhs

i The company has received total Rs. 1950.00 Lakhs by issue of preferential warrants convertible into equity share to promoter, promoter group and other specified purpose. The amount received were being utilized for the intended purpose as mentioned in the

b Terms of Repayment of term loans and other loans:

bl Term Loan from Kotak Mahindra Bank Limited

Term loan from Kotak Mahindra Bank Limited Rs 2621.71 Lakhs (Previous year balance Rs 1059.77 Lakhs) is secured by first and exclusive hypothecation charge on all existing and future receivables/ current assets/ movable assets/ movable fixed assets of the Borrower (i.e. Company) (excluding assets (vehicles) financed by other banks/FIs) of Unit I, SEZ and Techtex. It is further secured by exclusive mortgage on following properties :-Nature of Security -

(a) Property situated at S-4/3, S-4/2 & S-4/3A, Sector - I, Pithampur, District Dhar (M.P.) consisting of leasehold land and building thereon.

(b) Property situated at Plot No. 15, 16, 17 and 18 Special Economic Zone, Pithampur, District Dhar (M.P.) consisting of leasehold land and building thereon.

(c) Property situated at Plot No. 40-45, Shalimar Residency, Mhow, Indore consisting of freehold land and building thereon.

(d) Property situated at Block A & B of office premises at 3-4 Jaora Compound, MYH Road, Indore.

(e) Property at Plot No. A-12 & A-13 at SEZ Pithampur Phase 2 Dhar, (M.P.) in the name of Commercial Syn Bags Limited (Techtex) (Leasehold Land).

The Term Loan is further secured by Personal Guarantee(s) of Shri Anil Choudhary, Managing Director and Smt Ranjana Choudhary, Whole Time Director of the Company and by Corporate Guarantee of Super Sack Pvt Ltd (Corporate Promoter of the Company).

Term Loan from Kotak Mahindra Bank Limited consists of Rupee Term Loan of Rs. 2059.82 Lakhs (Previous balance Rs. 286.02) and Foreign Currency Term Loan (FCTL in Euro) of Rs. 561.89 Lakhs (Previous balance Rs. 773.74 Lakhs). There repayments are as -

(i) FCTL - 5933FC0400000004 of Rs. 94.86 Lakhs having interest rate 5.956 % (Euro 1,05,866.61) (Previous balance is Rs.138.22 Lakhs , Interest rate 3.50 % (Euro 1,63,267.69)) is repayable in Sixteen Equated Quarterly Instalments of Euro 15,828 each starting from June, 2019 to March, 2023 and Balance of Euro 1,05,866.61 will be convert in INR in June, 2023.

(ii) FCTL - 5933FC0400000005 of Rs. 98.72 Lakhs having interest rate 6.508 %(Euro 1,10,164.66 ) (Previous balance is Rs. 143.15 Lakhs , Interest rate 3.50 %(Euro 1,69,091.29)) is repayable in Sixteen Equated Quarterly Installment of Euro 16,275 each starting from September, 2019 to June, 2023 and Balance of Euro 95,721.87 will be convert in INR in September, 2023.

(iii) FCTL - 5933FC0400000006 of Rs. 59.90 Lakhs having interest rate 3.25 % (Euro 66,848.93 ) (Previous balance is Rs. 92.81 , Interest rate 3.50% (Euro 1,09,631.53 )) is repayable in Forty Six Equated Monthly Installment of Euro 3,814 each starting from June, 2020 to March, 2024 and balance of Euro 22,626.40 will be convert in INR in April, 2024.

(iv) FCTL - 5933FC0400000007 of Rs. 151.54 Lakhs having interest rate 5.00 %(Euro 1,69,118.47 ) is repayable in Eight Equated Quarterly Installment of Euro 22,304 each starting from January, 2023 to October, 2024 and Balance of Euro 22,516.16 will be convert in INR in January, 2025.

(v) FCTL - 5933FC0400000008 of Rs. 156.87 Lakhs having interest rate 5.00 %(Euro 1,75,062.12 ) is repayable in Eight Equated Quarterly Installment of Euro 23,087 each starting from January, 2023 to October, 2024 and Balance of Euro 23,313.91 will be convert in INR in January, 2025.

(vi) Rupee Term Loan I (No. - 5933TL0100000177) of Rs. 116.34 Lakhs having interest rate 9.25 % (Previous balance Rs.181.98 Lakhs, Interest rate 7.00%) is repayable in Eighteen Equated Quarterly Installment of Rs. 19.57 Lakhs each starting from June, 2020 to September, 2024 and last installment of Rs. 9.22 Lakhs in December, 2024.

(vii) Rupee Term Loan II (No.-5933TL0100000216) of Rs. 48.87 Lakhs having interest rate 8.75 % (Previous balance Rs. 83.71 Lakhs, Interest rate 7.00%) is repayable in Forty Nine Equated Monthly Installment of Rs. 3.36 Lakhs each starting from June, 2020 to June, 2024 and last installment of Rs. 1.50 Lakhs in July, 2024.

(viii) Rupee Term Loan III (No.-5933TL0100000225) of Rs. 12.37 Lakhs having interest rate 9.10 %(Previous balance Rs. 20.32 Lakhs, Interest rate 7.00%) is repayable in Fifty One Equated Monthly Installment of Rs. 0.78 Lakhs starting from June, 2020 to August, 2024 and last installment of Rs. 0.047 Lakhs in September, 2024.

(ix) Rupee Term Loan IV (No.-5933TL0100000392) of Rs. 1,882.23 Lakhs having interest rate 8.95 % is repayable in Seventy Three Equated Monthly Installment starting from June, 2023 to July, 2029 and last installment of Rs. 26.967 Lakhs in August, 2029.

b2 Term Loan from HDFC Bank Limited

Term Loan from HDFC Bank Limited consists of Rupee Term Loan of Rs.1225.71 Lakhs (Previous balance Rs. 1541.14 Lakhs). Term loan from HDFC Bank Limited is secured by exclusive first charge by way of equitable mortgage of leasehold factory land admeasuring about 23,113 sq ft. situated at 3/2 Sector 1 Industrial Area, Pithampur, Dist. Dhar and Building measuring at 24,180 sq. ft. situated at 3/1 Sector 1 Industrial Area, Pithampur, Dist. Dhar It is further secured by exclusive first charge by way of equitable mortgage of leasehold factory land admeasuring about 4932 sq. ft. & building thereon at Plot No. 309, Sector 1, Industrial Area, Pithampur, Dist. Dhar (M.P.). The loan is further secured by Equitable Mortgage of the lease hold factory land admeasuring about 8745 sq. ft. and Building thereon at Plot No. S-2/1, Sector - 1, Pithampur Dist Dhar and hypothecation of entire machineries, electric installations, furniture and fixtures, office equipments and other movable fixed assets of the Company situated at the above mentioned all factories, present and future. The loan also secured by exclusive 1st charge by way of hypothecation of entire machineries, electrical installations and other movable fixed assets of the company, situated at PH No. 36, village Galihara, Tehsil Sitamau, District Mandsaur present and future.

The Term Loan is further secured by Personal Guarantee(s) of Shri Anil Choudhary, Managing Director and Smt Ranjana Choudhary, Whole Time Director of the Company and by Corporate Guarantee of Super Sack Pvt Ltd (Corporate Promoter of the Company).

There repayment is as -

(i) Rupee Term Loan I (No.-83511438) of Rs. 587.43 Lakhs having interest rate 9.25% (Previous balance is Rs. 731.99 Lakhs, interest rate 7.50%) is repayable in Eighty Eight Equated Monthly Installment of Rs. 16.42 Lakhs starting from June, 2020 to September, 2026 and last installment ofRs. 4.00 Lakhs in October, 2026.

(ii) Rupee Term Loan III (No.-85084592/ Solar ) of Rs. 160.11 Lakhs having interest rate 9.25% (Previous balance is Rs. 208.10 Lakhs interest rate 7.50%) is repayable in Sixty Two Equated Monthly Installment of Rs. 5.22 Lakhs starting from February, 2021 to March, 2026.

(iii) Rupee Term Loan IV (No.-85256245) of Rs. 323.23 Lakhs having interest rate 9.25% (Previous balance is Rs. 372.98 interest rate 7.50% ) is repayable in Eighty Nine Equated Monthly Installment ofRs. 6.45 Lakhs starting from June, 2021 to August, 2028.

(iv) Rupee Term Loan V (No.-450555362) GECL- 01 of Rs. 121.87 Lakhs having interest rate 9.25% (Previous balance is Rs. 146.79 Lakhs interest rate 7.50%) is repayable in Forty Nine Equated Monthly Installment of Rs. 4.62 Lakhs starting from September, 2022 to September, 2025 ( First Twelve Months Moratorium ).

b3 Term Loan from State Bank of India

(i) Loan under Guanteed Emergency Credit Line (GECL) by way of Working Capital Term Loan (WCTL) from State Bank of India Rs. 88.71 Lakhs (Trading Division) (Previous balance is Rs. 167.72 Lakhs) is secured by extension of charge over the existing primary and collateral securities and receivable created out of bank finance, Fixed Deposit and collaterally secured by Equitable Mortgage of leasehold factory land and building constructed thereon situated at Plot No. S-4/1, Sector - I, Pithampur, Dhar (M.P.) and further secured by personal guarantee of Shri Anil Choudhary, Managing Director and Smt Ranjana Choudhary, Director ofthe Company. Rupee Term Loan GECL Trading Division (No.- 00000039692366967) of Rs. 88.71 Lakhs Having interest rate 9.25 %(Previous balance is Rs. 167.72 Lakhs, Interest rate 7.40%) is repayable in Thirty Six Monthly Installment of Rs. 6.54 Lakhs starting from September, 2021 to August, 2024 (First Twelve Months Moratorium).

(ii) Loan under Guanteed Emergency Credit Line (GECL) by way of Working Capital Term Loan (WCTL) from State Bank of India Rs. 334.93 Lakhs having interest rate is 9.25%(Previous balance is Rs. 416 Lakhs, Interest Rate 7.40% ) is secured by extension of charge over the existing primary and collateral securities and receivable created out of bank finance, Fixed Deposit and collaterally secured by Equitable Mortgage of leasehold factory land and building constructed thereon situated at Plot No. S-4/1, Sector - I, Pithampur, Dhar (M.P.) and further secured by personal guarantee of Shri Anil Choudhary, Managing Director and Smt. Ranjana Choudhary, Director of the Company.

Rupee Term Loan GECL Unit-01 (No.- 00000040365831307) of Rs. 334.93 Lakhs Having interest rate 9.25 %(Previous balance is 416 Lakhs, Interest Rate 7.40 %) is repayable in Thirty Six Monthly Installment of Rs. 11.55 Lakhs starting from August, 2022 to July, 2025 (First Twelve Months Moratorium). b4 Other Term Loans

(i) Term Loan (Car Loan) from ICICI Bank Limited of Rs. 3.42 Lakhs having interest rate 8.66 %(Previous balance Rs. 8.91 Lakhs Interest rate 8.66%) is repayable in Thirty Six equated monthly instalment of Rs. 0.50 Lakhs each commencing from November, 2020 to October, 2023. Secured by hypothecation of Eicher Truck.

(ii) Term Loan (Car Loan- 1327) from Bank of Baroda of Rs. 34.42 Lakhs having interest rate 9.85 % (Previous balance Rs. 40.33 Lakhs Interest rate 7.35%) is repayable in Eighty Three equated monthly instalment of Rs. 0.76 Lakhs each commencing from August,

2020 to June, 2027 and last installment of Rs. 4.17 Lakhs in July, 2027. The term loan is secured by hypothecation of vehicle Volvo S-90.

(iii) Term Loan (Car Loan- 1756) from Bank of Baroda of Rs. 22.61 Lakhs having interest rate 9.85 % (Previous balance is 25.45 Lakhs, Interest Rate 7.35%) is repayable in Eighty Three equated monthly instalment of Rs. 0.41 Lakhs each commencing from October,

2021 to August, 2028 and last installment of Rs. 3.29 Lakhs in September, 2028. The term loan is secured by hypothecation of Innova Car.

(iv) Term Loan (Car Loan- 1952) from Bank of Baroda of Rs. 18.34 Lakhs having interest rate 9.6 % (Previous balance is Nil) is repayable in Eighty Three equated monthly instalment of Rs. 0.31 Lakhs each commencing from June, 2022 to April, 2029 and last installment of Rs. 2.58 Lakhs in May, 2029. The term loan is secured by hypothecation of XUV700 Car.

Other Information Terms of Repayments of loan

Kotak Mahindra Bank Limited

Working Capital Loan from Kotak Mahindra Bank Limited of Rs. 1370.78 Lakhs having interst rate 8.45% (Previous balance Rs. 3223.11 Lakhs interest rate 6.50%) is secured by first and exclusive hypothecation charge on all existing and future receivables/ current assets/ movable assets/ movable fixed assets of the Borrower (excluding assets (vehicles) financed by other banks/FIs) of Unit I, SEZ and Techtex. It is further secured by exclusive mortgage on following properties-

(a) Property situated at S-4/3, S-4/2 & S-4/3A, Sector - I, Pithampur, District Dhar (M.P.) consisting of leasehold land and building thereon. (b) Property situated at Plot No. 15, 16, 17 and 18 Special Economic Zone, Pithampur, District Dhar (M.P.) consisting of leasehold land and building thereon. (c) Property situated at Plot No. 40-45, Shalimar Residency, Mhow, Indore consisting of freehold land and building thereon. (d) Property situated at Block A & B of office premises at 3-4 Jaora Compound, MYH Road, Indore. (e) Property at Plot No. A-12 & A-13 at SEZ Pithampur Phase 2 Dhar, (M.P.) in the name of Commercial Syn Bags Limited (Leasehold Land).

The Working Capital Loan is also guaranteed by Shri Anil Choudhary Managing Director, Smt Ranjana Choudhary, Whole Time Director ofthe Company and Corporate Guarantee of Super Sack Pvt Ltd (Corporate Promoter ofthe Company).

HDFC Bank Limited

Working Capital Loan from HDFC Bank Limited of Rs. 516.54 Lakhs having interest rate 9.25% (Previous balance Rs. 476.53 Lakhs, Interest Rate 7.00%) is primarily secured by hypothecation of Plant and Machinery, Stock, Book Debts, FD of Unit - II and collaterally secured by Equitable Mortgage of property at Plot No. S-2/1, 3/1,3/2 Sector - I, Pithampur, Dhar (M.P.) consisting of leasehold land and building thereon.

State Bank of India

Working Capital Loan from State Bank of India of Rs. 154.33 Lakhs (Previous balance Rs. 382.13 Lakhs) is secured by first charge by way of hypothecation of company’s stock/ receivable created out of bank finance, Fixed Deposit and collaterally secured by Equitable Mortgage of leasehold factory land and building constructed thereon situated at Plot No. S-4/1, Sector -I, Pithampur, Dhar (M.P.) and further secured by personal guarantee of Shri Anil Choudhary, Managing Director and Smt Ranjana Choudhary, Whole Time Director ofthe Company.

a. Nature of Grant : The Company has entered into MOU for execution of projects under Deen Dayal Upadhyaya Grameen Kaushalaya Yojna (DDU-GKY) Guidelines july 2016, (as may be amended from time to time the skill training and placement programme of the ministry of rural development (MoRD). Grants-in Aid is provided to the Company for the execution of aforsaid purpose

Other Information

i) The invoicing schedules agreed with customers include periodic performance based payments and milestone based progress payments. Invoices are payable within contractually agreed credit period.

ii) Judgement made in evaluating when a customer obtains control - Generally customer obtains control when the goods are delivered to the customer in case of C.I.F Sales and in case of F.O.B Sales when the cargo reaches the loading port.

All eligible employees of the Company in India are entitled to receive benefits under the provident fund plan. The Company makes provident fund contribution, a defined contribution plan, for qualifying employees. It also contributes to employee state insurance corporation, which is also defined contribution plan. The Company recognised Rs. 168.25 lakhs (Previous Year : 148.06 lakhs) and Rs. 78.46 lakhs ( Previous Year : Rs. 79.54 lakhs) respectively for PF and ESIC contribution in statement of profit and loss Provident fund and ESIC are managed through government administered funds.

Defined benefit plans ofthe Company comprises Gratuity

The gratuity plan provides for a lump sum payment to vested employees at retirement, death while in employment or on termination of employment.

The Company has opted the Employee Group Gratuity Scheme ofthe insurance service provider Life Insurance Corporation of India ("LIC") . Payments for Gratuity are funded through investments with Life Insurance Corporation of India.

The Company’s investment strategy in respect of its funded plans is implemented within the framework of the applicable statutory requirements. The plans expose the Company to a number of actuarial risks such as investment risk, interest rate risk, longevity risk and inflation risk. The Company has developed policy guidelines for the allocation of assets to different classes with the objective of controlling risk and maintaining the right balance between risk and long-term returns in order to limit the cost to the Company of the benefits provided.

The Company makes annual contribution to the Employee's Group Gratuity Cum Life Assurance Scheme of the Life Insurance Corporation of India, a funded benefit plan for qualifying employees. The Scheme provides for lump sum payment to vested employees at retirement, death while in employment or on termination of employment of an amount equivalent to 15 days salary payable for each completed year of service or part thereof in excess of six months. Vesting occurs upon completion of five years of service.

The figures of present value ofthe defined benefit obligation and the related current service cost were as measured and provided to us by a consulting actuary.

The expected contributions for Defined Benefit Plan for the next financial year will be in line with FY 2022-23.

In respect of Sales Tax

Demands amounting to Rs. 182.19 lakhs ( Previous Year 209.18 Lakhs) have been raised by the Indirect Tax Authorities which is contested by the company based on management evaluation and legal advice of tax consultants. Based on legal advice that these amounts would get deleted or substantially reduced, the Company has not recognised these as liabilities.

36 Additional Regulatory Information-

(i) Immovable Properties (other than properties where the company is the lessee and the lease agreements are duly executed

in favour of the lessee) whose title deeds are not held in the name of the company and where such immovable property is jointly held with others, details are given to the extent of company's share. - The Company has no such immovable properties

(iv) There is no Intangible assets under development.

(v) No proceedings have been initiated or pending against the company, under Prohibition of Banami Property Transaction Act.

(vi) The company has borrowings from the bank or financial institutions on the basis of security of current assets.

(vii) Quarterly returns or assessments of current assets filed by the company with banks or financial institutions are not in agreement with books of accounts. Following are the summary of reconciliation and reasons of material discrepancies-

Reason for Differences:

Inventory : Inventory is valued as per companies accounting policy, at the time of finalisation of financial statements whereas the same is taken on estimated basis for submission before bank.

Trade Receivables :

Difference in trade receivables is due to following reasons -

a. Recognition of revenue and trade receivables is made as per principles of Ind AS 115 at the time of finalisation of financial statements. Whereas trade receivables are reported to banks without applying principles of Ind AS 115.

b. Making of adhoc loss allowance when submitting statements to the bank while loss allowance as per IND AS 109 is made while finalising financial statements.

(viii) The company was not declared wilful defaulter by any Bank/Financial Institution/other lender.

(ix) Relationship with struck off Companies- Nil/None

(x) Registration of charges or satisfaction with Registrar of Companies- No charge registration or satisfaction was pending on the date of balance-sheet.

(xi) Compliance with number of layers of companies- The Company has complied with laws in respect of number of layers of companies.

(xii) Details of Crypto Currency or virtual currency- Nil Details of items of exceptional and extraordinary nature- Nil

(xiii) The company has not surrendered or disclosed any amount as income during the year in the tax assessment under the Income Tax Act,1961.

38 Segment Information

i. The Company has determined following reporting segments based on the information reviewed by the Company’s Chief Operating Decision Maker (‘CODM’):

a. Manufacturing segment - Business of manufacture and sale of FIBC, Jumbo bags, Poly Tarpauline, Woven Sacks / Bags, Box Bags, PP / HDPE Fabric, Liner and Flexible Packaging which mainly have same risks and returns.

b. Trading segment - Trading of Granule ( Del credre agent cum Consignment Stockiest)

Power generated from solar power is captively consumed. The solar power generation segment is integral part of manufacturing segment.

The above business segments have been identified considering :

a. the nature of products and services

b. the differing risks and returns

c. the internal organisation and management structure, and

d. the internal financial reporting systems.

ii. The Company's Chief operating Decision maker is Managing Director and Chief Executive Officer.

iii. The accounting policies adopted for segment reporting are in line with the accounting policy of the Company with following additional policies for segment reporting.

(a) Revenue and Expenses have been identified to a segment on the basis of relationship to operating activities of the segment. Revenue and Expenses which relate to enterprise as a whole and are not allocable to a segment on reasonable basis have been disclosed as “Unallocable”.

(b) Segment Assets and Segment Liabilities represent Assets and Liabilities in respective segments. Tax related assets and other assets and liabilities that cannot be allocated to a segment on reasonable basis have been disclosed as “Unallocable”.

Other Information

1 Remuneration paid to Key Managerial Person

The above figures do not include provisions for gratuity as separate actuarial valuation are not available and the cost to develop it would be excessive.

The contributions to defined contribution plans for key management personnel in respect of Provident fund is Rs. 0.86 lakhs (Previous Year : Rs. 0.86 lakhs)

2 Terms and Conditions for Outstanding Balances:

The balances are unsecured and would be settled in money.

3 Guarantee Given or Received by or to any Related Party

The Working Capital Loan of Rs. 1370.78 Lakhs is guaranteed by Shri Anil Choudhary (Managing Director) and Smt Ranjana Choudhary (Whole Time Director).

40 Corporate Social Responsibility (CSR)

(a) CSR amount required to be spent as per Section 135 of the Companies Act, 2013 read with Schedule VII there of by the company during the year is Rs. 33.28 Lakhs (Previous Year Rs. 29.37 Lakhs).

(b) Expenditure related to Corporate Social Responsibility is Rs. 34.60 Lakhs (Previous Year Rs. 17.99 Lakhs)

41 Research & Development

The company conducts its R&D initiatives within the broad framework of innovation initiatives.

The company purchased technologically upgraded Circular Loom, Stitching Machine, Ultrasonic Cutting and Sealing Machine, for its units.

42 Disclosures pursuant to Regulation 34 (3) of Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 and Section 186 of the Companies Act, 2013

44 d. Financial Risk Management

The Company is exposed primarily to market risks being fluctuations in foreign currency exchange rates and interest rate, and other risks namely credit and liquidity risks, which may adversely impact the fair value of its financial instruments. The Company has constituted a Risk Management Committee, which is responsible for developing and monitoring the Company’s risk management Committee, which is responsible for developing and monitoring the Company’s risk management policies. The Company has a risk management policy which covers risks associated with financial assets and liabilites. The focus of risk management committee is to assess the unpredictability of the financial environment and to mitigate the potential adverse effects on the financial performance ofthe Company.

dl. Management of Market Risk

The Company’s size and operations result in it being exposed to the following market risks that arise from its use of financial instruments:

d2. Foreign Currency Exchange Rate Risk

The fluctuation in foreign currency exchange rates may have potential impact on the statement of profit and loss and other comprehensive income and equity, where any transaction references more than one currency or where assets / liabilities are denominated in a currency other than the functional currency ofthe company.

The Company as per its risk management policy, uses derivative instruments primarily to hedge foreign exchange.

The foreign exchange rate sensitivity is calculated by aggregation of the net foreign exchange rate exposure and a simultaneous parallel foreign exchange rates shift of all the currencies by 1% against the functional currency ofthe Company.

d3. Interest Rate Risk

The Company is also exposed to interest rate risk, changes in interest rates will affect future cash flows or the fair values of its financial instruments, principally debt. Any movement in the reference rates could have an impact on the Company’s cash flows as well as costs. The Company is subject to variable interest rates on some of its interest bearing liabilities.

d4. Management Of Credit Risk

Credit risk is the risk that a customer or counter party to a financial instrument fails to perform or pay the amount according to the contractual terms or obligations causing financial loss to the Company

Credit risk encompasses of risk of default, risk of deterioration of creditworthiness as well as concentration of risks.

Credit risk is controlled by analysing credit limits and creditworthiness of customers of a continuous basis to whom the credit has been granted.

Exposure to Credit Risk

The carrying amount of financial assets represents the maximum credit exposure.

The maximum exposure to credit risk is Rs 5442.57 lakhs ( Rs 6322.85 lakhs in preceding year) being the total of carrying amount of trade receivables, balance with banks, bank deposits and other financial assets.

Trade receivables

Concentration of credit risk with respect to trade receivables are limited, due to the Company’s customer base being large and diverse. All trade receivables are reviewed and assessed for default on a quarterly basis.

Other financial assets

The Company maintains exposure in bank balances and term deposits with banks. Considering insignificant amounts and short term nature, there is no significant risks pertaining to these assets.

d5. Management of Liquidity Risk

Liquidity risk arises from the Company’s inability to meet its cash flow commitments on the due date.

The Company has obtained fund and non-fund based working capital lines from various banks. Furthermore, the Company have access to undrawn lines of committed and uncommitted borrowing/ facilities

The Company has maintained a cautious liquidity strategy, with a positive cash balance throughout the year ended 31st March, 2023 and 31st March, 2022. Cash flow from operating activities provides the funds to service and finance the financial liabilities on a day-to-day basis.

The following table shows a maturity analysis of the anticipated cash flows including interest obligations for the Company’s non-derivative financial liabilities on an undiscounted basis, which therefore differ from both carrying value and fair value.

The Board of Directors have constituted a Risk Management Committee to frame, implement and monitor the risk management plan of the company which inter alia covers risks arising out of exposure of foreign currency fluctuations.

The company uses various derivative instruments such as foreign exchange forward in which the counter party is generally the bank.