Kay Power And Paper Ltd. के अकाउंट के लिये नोट

Mar 31, 2025

l. Provisions and Contingent liability

Provisions are recognised when the Company
has a present obligation (legal or constructive)
as a result of a past event, it is probable that
an outflow of resources embodying economic
benefits will be required to settle the obligation
and a reliable estimate can be made of the
amount of the obligation.

Contingent liabilities are disclosed in the Notes.
Contingent liabilities are disclosed for

i. possible obligations which will be confirmed
only by future events not wholly within
the control of the Company or

ii. present obligations arising from past
events where it is not probable that an
outflow of resources will be required to
settle the obligation or a reliable estimate
of the amount of the obligation cannot be
made.

m. Employee benefits
Short-term obligations

Short-term employee benefits are expensed
as the related service is provided. Liabilities
for wages and salaries, including non-monetary

benefits that are expected to be settled wholly
within one year after the end of the period in
which the employees render the related service
are the end of the reporting period and are
measured at the amounts expected to be paid
when the liabilities are settled. The liabilities
are presented as current employee benefit
obligations in the balance sheet.

Post-employment obligations

The Company operates the following post¬
employment schemes:

i. defined benefit plans such as gratuity and

ii. defined contribution plans such as provident
fund

Defined benefit plans

The liability for defined benefit obligation
towards gratuity is recognised in the year of
payment and in view of the heavy accumulated
losses and due to the small eligible staff
strength, no actuarial working is taken to avoid
extra expenditure for it. The liability or asset in
respect of defined benefit gratuity plans is not
recognised in the balance sheet.

Defined contribution plans

The Company pays provident fund contributions
to publicly administered provident funds
as per local regulations. The group has
no further payment obligations once the
contributions have been paid. The contributions
are accounted for as defined contribution
plans and the contributions are recognised as
employee benefit expense when they are due.

n. Financial instruments

Financial assets

Initial recognition and measurement

All financial assets are recognised initially
at fair value.

The classification depends on the Company''s
business model for managing the financial asset
and the contractual terms of the cash flows. The
Company classifies its financial assets in the

following measurement categories:

i. those to be measured subsequently at fail
value (either through other comprehensive
income, or through profit or loss),

ii. those measured at amortised cost, and
Subsequent measurement

For assets measured at fair value, gains
and losses will either be recorded in profi
or loss or other comprehensive income. Foi
investments in equity instruments, this wil
depend on whether the Company has made
an irrevocable election at the time of initia
recognition to account for the equity investmen
at fair value through other comprehensive
income. All other financial assets are measurec
at amortised cost, using the effective interes
rate (EIR) method. Amortised cost is calculated
by taking into account any discount or premium
on acquisition and fees or costs that are ar
integral part of the EIR. The EIR amortisation
is included in finance income in the statemen
of profit or loss.

Impairment of financial assets

The Company applies expected credit loss
(ECL) model for measurement and recognition
of impairment loss financial assets that are no
fair valued.

The Company follows ''simplified approach
for recognition of impairment loss for trade
receivables and lease receivables resulting
from transactions within the scope of Ind AS 17
that have no significant financing component
The application of simplified approach does
not require the Company to track changes in
credit risk. Rather, it recognises impairmen
loss allowance based on lifetime ECLs at each
reporting date, right from its initial recognition

For all other financial assets, expected credi
losses are measured at an amount equal to
the 12-month ECL, unless there has been e
significant increase in credit risk from initia
recognition in which case those are measured
at lifetime ECL.

The amount of expected credit losses (or
reversal) that is required to adjust the loss
allowance at the reporting date to the amount
that is required to be recognized, is recognized
under the head ''other expenses'' in the
statement of profit and loss. The Company
does not have any purchased or originated
credit-impaired (POCI) financial assets, i.e.,
financial assets which are credit impaired on
purchase/ origination.

De-recognition of financial assets

The Company derecognizes a financial asset when -

i. the contractual rights to the cash flows from
the financial asset expire or it transfers the
financial asset and the transfer qualifies for
de-recognition under IND AS 109.

ii. it retains contractual rights to receive the cash
flows of the financial asset but assumes a
contractual obligation to pay the cash flows to
one or more recipients.

When the entity has neither transferred a
financial asset nor retained substantially all
risks and rewards of ownership of the financial
asset, the financial asset is de-recognised
if the Company has not retained control of
the financial asset. Where the Company
retains control of the financial asset, the asset
is continued to be recognised to extent of
continuing involvement in the financial asset.

Financial liabilities
Initial recognition

All financial liabilities are recognized initially
at fair value and, in the case of loans and
borrowings and payables, net of directly
attributable transaction costs.

Subsequent measurement

The subsequent measurement of financial
liabilities depends on their classification, as
described below:

Trade and other payables

These amounts represent liabilities for goods

and services provided to the Company prior to
the end of financial year which are unpaid. The
amounts are unsecured and are usually paid
within 30 days of recognition. Trade and other
payables are presented as current liabilities
unless payment is not due within one year
after the reporting period. They are recognised
initially at their fair value and subsequently
measured at amortised cost using the effective
interest method.

Borrowings

Borrowings are initially recognised at fair value,
net of transaction costs incurred. Borrowings
are subsequently measured at amortised cost.
Any difference between the proceeds (net of
transaction costs) and the redemption amount
is recognised in profit or loss over the period
of the borrowings using the effective interest
method. Fees paid on the establishment of loan
facilities are recognised as transaction costs
of the loan to the extent that it is probable that
some or all of the facility will be drawn down.
In this case, the fee is deferred until the draw
down occurs. To the extent there is no evidence
that it is probable that some or all of the facility
will be drawn down, the fee is capitalised as a
prepayment for liquidity services and amortised
over the period of the facility to which it relates.

Borrowings are de-recognised when the
obligation specified in the contract is discharged,
cancelled or expired. The difference between
the carrying amount of a financial liability that
has been extinguished or transferred to another
party and the consideration paid, including
any non-cash assets transferred or liabilities
assumed, is recognised in profit or loss as other
gains/(losses).

Borrowings are classified as current liabilities
unless the group has an unconditional right to
defer settlement of the liability for at least one
year after the reporting period. Where there is
a breach of a material provision of a long-term
loan arrangement on or before the end of the
reporting period with the effect that the liability

becomes payable on demand on the reporting
date, the entity does not classify the liability as
current, if the lender agreed, after the reporting
period and before the approval of the financial
statements for issue, not to demand payment
as a consequence of the breach.

o. Earnings per share

The basic earnings per share is computed by
dividing the net profit for the year attributable
equity shareholders by the weighted average
number of equity shares outstanding during
the period. The Company does not have any
potential equity share or warrant outstanding
for the periods reported, hence diluted earnings
per share is same as basic earnings per share
of the Company.

p. Segment reporting

Operating segments are reported in a manner
consistent with the internal reporting provided
to the chief operating decision maker. The
Board of Directors of the Company, assesses
the financial performance and position of the
Company, and makes strategic decisions. The
Board of Directors is therefore considered to be
the chief operating decision maker.

q. Critical estimated and judgements

i Impairment of Trade receivables

The Company estimates the un¬
collectability of accounts receivable by
analyzing historical payment patterns,
customer concentrations, customer
credit-worthiness and current economic
trends. If the financial condition of
a customer deteriorates, additional
allowances may be required.

ii Income Taxes

Significant judgments are involved in
determining the provision for income
taxes, including amount expected to
be paid/recovered for uncertain tax
positions.

NOTE 24: Contingent Liabilities: #

1- Guarantee executed in favour of customs for EPCG has been expired and unascertained duty for unfulfilled
export obligation is outstanding.

#The Management believes based on internal assessment and legal advice that the probability of an ultimate
adverse decision and outflow of money is not probable and accordingly no provision for the same is necessary.

NOTE 25: Net deferred tax has not been recognised in view of uncertainty about future taxable income
against asset which the deferred tax asset can be realised.

NOTE 26: C.I.F. value of imported wastepaper

C.I.F. value of imported wastepaper FOR 24-25 Rs. 46,50,876.57/- (USD -53359.3 $) - FOR 23-24 (Rs.
67,36,221.64) USD- 78238.30 $

NOTE NO. 27: Operating Segment: The company is engaged in the business of manufacturing of Kraft
Paper and therefore, has only one reportable segment in accordance with IndAS 108 Operating Segments

NOTE NO. 28: Government Grants: The company received IPS subsidy claim from Government of
Maharashtra of Rs.43.96 Lakhs. Out of which claim of Rs.32.97 lakhs was received during the year under
consideration and claim of Rs.21.97 Lakhs is sanctioned by Government but not received till the end of the
year (Including Rs.10.98 Lakhs sanctioned in earlier years).

There are no unfulfilled conditions and other contingencies attached to government subsidy that has been
recognized in the financial statements.

The subsidy received is of revenue nature sanctioned against state GST payment and treated as revenue
income by the company and shown as other income in the Profit and Loss Account.

NOTE NO. 29:- Additional Regulatory and other information as required by the Schedule III of the Companies
Act 2013

NOTE NO. 29 (i) : There are no proceedings initiated or are pending against the company for holding any
benami property under the Benami Transactions (Prohibition) Act, 1998 (45 of 1998) and rules made thereunder.

NOTE NO. 29(ii) : The company has not been sanctioned working capital limit in excess of five crore rupees
in aggregate from banks of financial institutions on the basis of security of current assets.

NOTE NO. 29 (iii) : The company did not have any transactions with Companies struck off under section
248 of Companies Act, 2013 or section 560 of Companies Act, 1956 considering the information available
with the company.

NOTE NO. 29 (iv) : The company do have any parent company and accordingly, compliance with number
of layers prescribed under clause (87) of section 2 of the Act read with Companies (Restriction on number
of layers) Rules, 2017 is not applicable for the year under audit.

Formula adopted for above ratios

Current Ratio = Current Assets/(Total Current Liabilities- Security Deposits payable on Demand- Current
Liabilities of Long Term Debt)

Debt Equity Ratio = Total Debt/ Total Equity

Return of Equity Ratio= Total Comprehensive Income/ Average Total Equity
Inventory Turnover Ratio= 365/(Net Revenue/Average Inventories)

Trade Receivables Turnover Ratio= 365/(Net Revenue/Average Trade Receivables)

Trade Payables Turnover Ratio= 365/(Net Purchase/Average Trade Payables)

Net Profit Ratio = Net Profit/ Total Income

Return on Capital Employed = (Total Comprehensive Income Interest)/ (Average of Equity Debt)

Return on Investment = Total Comprehensive Income/ Average Total Assets
Reasons for variation if more than 25%

- Current Ratio :- Current ratio for current year has become was adverse due to large amount of Trade
Payables towards capital expenditure during the year.

- Debt Equity Ratio :- Debt Equity ratio is improved in the year under consideration due to increase in equity
on account of internal accruals and decrease in outside debts.

- Return of Equity Ratio :- Even though Net comprehensive income is decrease by small margin during
the year under consideration, return on equity ratio decreased due to large increase in equity share capital
and share premium.

- Inventory Turnover Ratio :- Increase in the net revenue and reduction in inventory value during the year
under consideration has caused lower days of Inventory turnover .

- Trade Receivables Ratio :- Increase in the net revenue and and higher amount of trade receivables during
the year under consideration has caused increase in days of Trade Receivables turnover .

- Net Profit Ratio :- A small increase in material cost as compared to previous year coupled with higher
employee benefit cost has caused net profit ratio to decrease by 1.26%.

- Return on Capital Employed :- Large increase in Equity Share Capital during the year has caused fall of
2% in ratio of return on capital employed during the year under consideration.

- Return on Investment : Return on investment ratio is decreased by 1.43% on account of decrease in total
comprehensive income coupled by increase in average total assets due to large capital expenditure.

NOTE NO. 29 (vi): There is no scheme of arrangement approved by Competent Authority in terms of section
230 to 237 of the Companies Act 2013 during the year

NOTE NO. 29 (vii) The company has not advanced or loaned of invested funds (either borrowed funds or
share premium or any other sources or kind of funds) to any other person(s) of entity(ies), including foreign
entities (Intermediaries) with the understanding (whether recorded in writing of otherwise) that the intermediary
shall (i) directly of 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.

The company has also not received any funds from any other person(s) of entity(ies), including foreign entities
(Funding Party) with the understanding (whether recorded in writing of 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 Company (Ultimate Beneficiaries) or (ii) provide any guarantee, security or the like to or on
behalf of the Ultimate beneficiaries.

NOTE NO. 29(viii) : The Company does not have any transactions which are not recorded in the books of
accounts that has been surrendered or disclosed as income in the Tax Assessment under the Income Tax
Act, 1961 during any of the years.

NOTE NO. 29 (ix) The company uses an accounting software for maintaining its books of account which
does not have working feature of recording audit trail (edit log) facility and the same has not been operated
throughout the year. The audit trail has not been preserved by the company.

NOTE NO. 30. Fair value measurement of financial Instruments
Financial Instruments by category: - In lakhs

(iii) As per Ind AS 107 “Financial Instrument: Disclosure”, fair value disclosures are not required when the
carrying amounts reasonably approximate the fair value. Accordingly fair value disclosures have not been
made for the following financial instruments:-

1. Trade receivables

2. Cash and cash equivalent

3. Other bank balances

4. Security deposits

5. Borrowings

6. Trade payables

7. Employee dues

8. Other payables

NOTE 30(i): FINANCIAL RISK MANAGEMENT

The Company''s business activities are exposed to a variety of financial risks, namely liquidity risk,
market risks and credit risk. The Company''s senior management has the overall responsibility for
establishing and governing the Company''s risk management framework. The Company has constituted
a Risk Management Committee, which is responsible for developing and monitoring the Company''s risk
management policies. The Company''s risk management policies are established to identify and analyze
the risks faced by the Company, to set and monitor appropriate risk limits and controls, periodically
review the changes in market conditions and reflect the changes in the policy accordingly. The key risks
and mitigating actions are also placed before the Audit Committee of the Company.

a. MANAGEMENT OF CREDIT RISK

Credit risk is the risk of financial loss to the Company if a customer or counter-party fails to meet its
contractual obligations and arises principally from the company''s receivables from customers
i) Trade receivables:-

Credit risk refers to the risk of default on its obligation by the counterparty resulting in a financial loss.
The maximum exposure to the credit risk at the reporting date is primarily from trade receivables
amounting to Rs. 518.03 and Rs. 292.80 lakhs as of 31st March 2025 and 31st March 2024,
respectively. Trade receivables are typically unsecured and are derived from revenue earned from
customers located in India. Credit risk has always been managed by the company through credit
approvals, establishing credit limits and continuously monitoring the creditworthiness of customers
to which the Company grants credit terms in the normal course of business.

The company have stop supply mechanism in place in case outstanding goes beyond agreed limits.
Based on prior experience and an assessment of the current economic environment, management
believes there is no further credit risk provision required.

NOTES TO STANDALONE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31^st MARCH, 2025
ib. Other financial assets:-

Credit risk on cash and cash equivalents is limited as the company generally invests in
deposits with banks and financial institutions with good reputation. The Company''s maximum
exposure to credit risk is the carrying value of each class of financial assets.

b. MANAGEMENT OF LIQUIDITY RISK

Liquidity risk is the risk that the Company will face in meeting its obligations associated with its
financial liabilities. The Company''s approach in managing liquidity is to ensure that it will have
sufficient funds to meet its liabilities when due without incurring unacceptable losses or risking
damage to company''s reputation. In doing this, management considers both normal and stressed
conditions. Management monitors the rolling forecast of the company''s liquidity position on the
basis of expected cash flows. This monitoring includes financial ratios and takes into account the
accessibility of cash and cash equivalents.

The company has access to funds from debt markets through loan from banks. The company
invests its surplus funds in bank deposits.

The following table shows the maturity analysis of the Company''s financial liabilities based on
contractually agreed undiscounted cash flows along with its carrying value as at the Balance Sheet
date.

c. MANAGEMENT OF MARKET RISK:

Market risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate
because of fluctuation in market prices. These comprise three types of risk i.e. currency rate, interest
rate and other price related risks. Financial instruments affected by market risk include loans and
borrowings, deposits, investments, and derivative financial instruments. Regular interaction with
bankers, intermediaries and the market participants help us to mitigate such risk.

i) Foreign currency risk

The company makes payment in foreign currency for material imported. The transactions
in foreign currency constitute very small proportion of total transaction. Hence, foreign
exchange risk is not material market risk to the Company. During the period under audit
or in comparative period presented the company has not made any derivative financial
instruments related transaction to cover foreign exchange risk or otherwise.

The company did not have any unhedged foreign currency exposure as on 31/03/2025 or
any other earlier two preceding years.

ii) Interest rate risk exposure

Interest rate risk is the risk that the fair value or future cash flows on a financial instrument will
fluctuate because of changes in market interest rates. The management is responsible for the
monitoring of the company''s interest rate position. Various variables are considered by the
management in structuring the company''s investment to achieve a reasonable competitive
cost of funding. Only interest bearing loan outstanding is small amount of loan against vehicle
bearing fixed interest. The company has not borrowed any other funds bearing interest.

NOTE 30 (ii): CAPITAL MANAGEMENT

(a) Risk management

The Company''s capital comprises equity share capital, share premium, retained earnings
attributable to equity holders.

The Company''s objectives when managing capital are to safeguard their ability to continue
as a going concern, so that they can continue to provide returns for shareholders and benefits
for other stakeholders and maintain an optimal capital structure to reduce the cost of capital.

The company had incurred heavy loss in past resulting in complete erosion of its net worth.
Net worth has turned positive from year ended on 31/03/2018. But the company is not yet in
position to pay dividend to share holder.

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Mar 31, 2024

j. Provisions and Contingent liability

Provisions are recognised when the Company has a present obligation (legal or constructive) as a result of a past event, it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation.

Contingent liabilities are disclosed in the Notes. Contingent liabilities are disclosed for

i. possible obligations which will be confirmed only by future events not wholly within the control of the Company or

ii. present obligations arising from past events where it is not probable that an outflow of resources will be required to settle the obligation or a reliable estimate of the amount of the obligation cannot be made

k. Employee benefits Short-term obligations

Short-term employee benefits are expensed as the related service is provided. Liabilities for wages and salaries, including non-monetary

benefits that are expected to be settled wholly within one year after the end of the period in which the employees render the related service are the end of the reporting period and are measured at the amounts expected to be paid when the liabilities are settled. The liabilities are presented as current employee benefit obligations in the balance sheet.

Post-employment obligations

The Company operates the following postemployment schemes:

i. defined benefit plans such as gratuity and

ii. defined contribution plans such as provident fund

Defined benefit plans

The liability for defined benefit obligation towards gratuity is recognised in the year of payment and in view of the heavy accumulated losses and due to the small eligible staff strength, no actuarial working is taken to avoid extra expenditure for it. The liability or asset in respect of defined benefit gratuity plans is not recognised in the balance sheet..

Defined contribution plans

The Company pays provident fund contributions to publicly administered provident funds as per local regulations. The group has no further payment obligations once the contributions have been paid. The contributions are accounted for as defined contribution plans and the contributions are recognised as employee benefit expense when they are due.

. Financial instruments

Financial assets

Initial recognition and measurement

All financial assets are recognised initially at fair value

The classification depends on the Company''s business model for managing the financial asset and the contractual terms of the cash flows. The Company classifies its financial assets in the

following measurement categories:

i. those to be measured subsequently at fair value (either through other comprehensive income, or through profit or loss),

ii. those measured at amortised cost, and Subsequent measurement

For assets measured at fair value, gains and losses will either be recorded in profit or loss or other comprehensive income. For investments in equity instruments, this will depend on whether the Company has made an irrevocable election at the time of initial recognition to account for the equity investment at fair value through other comprehensive income. All other financial assets are measured at amortised cost, using the effective interest rate (EIR) method. Amortised cost is calculated by taking into account any discount or premium on acquisition and fees or costs that are an integral part of the EIR. The EIR amortisation is included in finance income in the statement of profit or loss.

Impairment of financial assets

The Company applies expected credit loss (ECL) model for measurement and recognition of impairment loss financial assets that are not fair valued.

The Company follows ''simplified approach'' for recognition of impairment loss for trade receivables and lease receivables resulting from transactions within the scope of Ind AS 17 that have no significant financing component. The application of simplified approach does not require the Company to track changes in credit risk. Rather, it recognises impairment loss allowance based on lifetime ECLs at each reporting date, right from its initial recognition.

For all other financial assets, expected credit losses are measured at an amount equal to the 12-month ECL, unless there has been a significant increase in credit risk from initial recognition in which case those are measured at lifetime ECL.

The amount of expected credit losses (or reversal) that is required to adjust the loss allowance at the reporting date to the amount that is required to be recognized, is recognized under the head ''other expenses'' in the statement of profit and loss. The Company does not have any purchased or originated credit-impaired (POCI) financial assets, i.e., financial assets which are credit impaired on purchase/ origination.

De-recognition of financial assets

The Company derecognizes a financial asset when -

i. the contractual rights to the cash flows from the financial asset expire or it transfers the financial asset and the transfer qualifies for de-recognition under IND AS 109.

ii. it retains contractual rights to receive the cash flows of the financial asset but assumes a contractual obligation to pay the cash flows to one or more recipients.

When the entity has neither transferred a financial asset nor retained substantially all risks and rewards of ownership of the financial asset, the financial asset is de-recognised if the Company has not retained control of the financial asset. Where the Company retains control of the financial asset, the asset is continued to be recognised to extent of continuing involvement in the financial asset.

Financial liabilities Initial recognition

All financial liabilities are recognized initially at fair value and, in the case of loans and borrowings and payables, net of directly attributable transaction costs.

Subsequent measurement

The subsequent measurement of financial liabilities depends on their classification, as described below:

Trade and other payables

These amounts represent liabilities for goods

and services provided to the Company prior to the end of financial year which are unpaid. The amounts are unsecured and are usually paid within 30 days of recognition. Trade and other payables are presented as current liabilities unless payment is not due within one year after the reporting period. They are recognised initially at their fair value and subsequently measured at amortised cost using the effective interest method.

Borrowings

Borrowings are initially recognised at fair value, net of transaction costs incurred. Borrowings are subsequently measured at amortised cost. Any difference between the proceeds (net of transaction costs) and the redemption amount is recognised in profit or loss over the period of the borrowings using the effective interest method. Fees paid on the establishment of loan facilities are recognised as transaction costs of the loan to the extent that it is probable that some or all of the facility will be drawn down. In this case, the fee is deferred until the draw down occurs. To the extent there is no evidence that it is probable that some or all of the facility will be drawn down, the fee is capitalised as a prepayment for liquidity services and amortised over the period of the facility to which it relates.

Borrowings are de-recognised when the obligation specified in the contract is discharged, cancelled or expired. The difference between the carrying amount of a financial liability that has been extinguished or transferred to another party and the consideration paid, including any non-cash assets transferred or liabilities assumed, is recognised in profit or loss as other gains/(losses).

Borrowings are classified as current liabilities unless the group has an unconditional right to defer settlement of the liability for at least one year after the reporting period. Where there is a breach of a material provision of a long-term loan arrangement on or before the end of the reporting period with the effect that the liability

becomes payable on demand on the reporting date, the entity does not classify the liability as current, if the lender agreed, after the reporting period and before the approval of the financial statements for issue, not to demand payment as a consequence of the breach.

m. Earnings per share

The basic earnings per share is computed by dividing the net profit for the year attributable equity shareholders by the weighted average number of equity shares outstanding during the period. The Company does not have any potential equity share or warrant outstanding for the periods reported, hence diluted earnings per share is same as basic earnings per share of the Company.

n. Segment reporting

Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating decision maker. The Board of Directors of the Company, assesses the financial performance and position of the Company, and makes strategic decisions. The Board of Directors is therefore considered to be the chief operating decision maker.

o. Critical estimated and judgements

i Impairment of Trade receivables

The Company estimates the uncollectability of accounts receivable by analyzing historical payment patterns, customer concentrations, customer credit-worthiness and current economic trends. If the financial condition of a customer deteriorates, additional allowances may be required.

ii Income Taxes

Significant judgments are involved in determining the provision for income taxes, including amount expected to be paid/recovered for uncertain tax positions.

NOTE 24: Contingent Liabilities: Guarantee executed in favour of customs for EPCG has been expired and unascertained duty for unfulfilled export obligation is outstanding.

NOTE 25: Net deferred tax has not been recognised in view of uncertainty about future taxable income against asset which the deferred tax asset can be realised.

NOTE 26: C.I.F. value of imported wastepaper C.I.F. value of imported wastepaper FOR 23-24 Rs. 67,36,221.64/- (USD -78238.30$) - FOR 22-23 (Rs. 45, 14,171.59) USD- 54152.10 $

NOTE NO. 27: Operating Segment: The company is engaged in the business of manufacturing of Kraft Paper and therefore, has only one reportable segment in accordance with IndAS 108 Operating Segments.

Note 28: Government Grants: The company received IPS subsidy claim from Government of Maharashtra of Rs.87.58 Lakhs. Out of which claim of Rs.43.63 lakhs was received during the year under consideration and claim of Rs.32.96 Lakhs is sanctioned by Government but not received till the end of the year.

There are no unfulfilled conditions and other contingencies attached to government subsidy that has been recognized in the financial statements.

The subsidy received is of revenue nature sanctioned against state GST payment and treated as revenue income by the company and shown as other income in the Profit and Loss Account.

Note 29:- Additional Regulatory and other information as required by the Schedule III of the Companies Act 2013

Note 29 (i) : There are no proceedings initiated or are pending against the company for holding any benami property under the Benami Transactions (Prohibition) Act, 1998 (45 of 1998) and rules made thereunder.

Note 29(ii) : The company has not been sanctioned working capital limit in excess of five crore rupees in aggregate from banks of financial institutions on the basis of security of current assets.

Note 29 (iii) : The company did not have any transactions with Companies struck off under section 248 of Companies Act, 2013 or section 560 of Companies Act, 1956 considering the information available with the company.

Note 29 (iv) : The company do have any parent company and accordingly, compliance with number of layers prescribed under clause (87) of section 2 of the Act read with Companies (Restriction on number of layers) Rules, 2017 is not applicable for the year under audit.

Formula adopted for above ratios

Current Ratio = Current Assets/(Total Current Liabilities- Security Deposits payable on Demand- Current Liabilities of Long Term Debt)

Debt Equity Ratio = Total Debt/ Total Equity

Return of Equity Ratio= Total Comprehensive Income/ Average Total Equity Inventory Turnover Ratio= 365/(Net Revenue/Average Inventories)

Trade Receivables Turnover Ratio= 365/(Net Revenue/Average Trade Receivables)

Trade Payables Turnover Ratio= 365/(Net Revenue/Average Trade Payables)

Net Profit Ratio = Net Profit/ Net Revenue

Return on Capital Employed = (Total Comprehensive Income Interest)/ (Average of Equity Debt)

Return on Investment = Total Comprehensive Income/ Average Total Assets Reasons for variation if more than 25%

- Current Ratio :- Current ratio for preceding year was adverse due to large amount of Trade Payables towards capital expenditure. The current ratio is improved in the year under consideration due to decrease in Trade Payables.

- Debt Equity Ratio :- Debt Equity ratio is improved in the year under consideration due to increase in equity on account of internal accruals and decrease in outside debts.

- Return of Equity Ratio :- Even though Net comprehensive income is increased during the year under consideration, return on equity ratio decreased due to increase in equity due to plough back of profit.

- Inventory Turnover Ratio :- Reduction in the net revenue during the year under consideration has caused lower days of Inventory turnover .

Note 29 (vi): There is no scheme of arrangement approved by Competent Authority in terms of section 230 to 237 of the Companies Act 2013 during the year

Note 29 (vii) The company has not advanced or loaned of invested funds (either borrowed funds or share premium or any other sources or kind of funds) to any other person(s) of entity(ies), including foreign entities (Intermediaries) with the understanding (whether recorded in writing of otherwise) that the intermediary shall (i) directly of 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.

The company has also not received any funds from any other person(s) of entity(ies), including foreign entities (Funding Party) with the understanding (whether recorded in writing of 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 Company (Ultimate Beneficiaries) or (ii) provide any guarantee, security or the like to or on behalf of the Ultimate beneficiaries.

Note : 29(viii) : The Company does not have any transactions which are not recorded in the books of accounts that has been surrendered or disclosed as income in the Tax Assessment under the Income Tax Act, 1961 during any of the years.

Note : 29 (ix) The company uses an accounting software for maintaining its books of account which has feature of recording audit trail (edit log) facility and the same has been operated throughout the year for all transactions recorded in the software and the audit trail feature has not been tampered with at any time during the year. The audit trail has been preserved by the company as per the statutory requirements for record retention.

The Company''s business activities are exposed to a variety of financial risks, namely liquidity risk, market risks and credit risk. The Company''s senior management has the overall responsibility for establishing and governing the Company''s risk management framework. The Company has constituted a Risk Management Committee, which is responsible for developing and monitoring the Company''s risk management policies. The Company''s risk management policies are established to identify and analyze the risks faced by the Company, to set and monitor appropriate risk limits and controls, periodically review the changes in market conditions and reflect the changes in the policy accordingly. The key risks and mitigating actions are also placed before the Audit Committee of the Company. a. MANAGEMENT OF CREDIT RISK

Credit risk is the risk of financial loss to the Company if a customer or counter-party fails to meet its contractual obligations and arises principally from the company''s receivables from customers i) Trade receivables:-

Credit risk refers to the risk of default on its obligation by the counterparty resulting in a financial loss. The maximum exposure to the credit risk at the reporting date is primarily from trade receivables amounting to Rs. 292.80 lakhs and Rs. 207.01 lakhs as of 31st March 2024 and 31st March 2023, respectively. Trade receivables are typically unsecured and are derived from revenue earned from customers located in India. Credit risk has always been managed by the company through credit approvals, establishing credit limits and continuously monitoring the creditworthiness of customers to which the Company grants credit terms in the normal course of business.

The company have stop supply mechanism in place in case outstanding goes beyond agreed limits. Based on prior experience and an assessment of the current economic environment, management believes there is no further credit risk provision required.

ib. Other financial assets:-

Credit risk on cash and cash equivalents is limited as the company generally invests in deposits with banks and financial institutions with good reputation. The Company''s maximum exposure to credit risk is the carrying value of each class of financial assets.

b. MANAGEMENT OF LIQUIDITY RISK

Liquidity risk is the risk that the Company will face in meeting its obligations associated with its financial liabilities. The Company''s approach in managing liquidity is to ensure that it will have sufficient funds to meet its liabilities when due without incurring unacceptable losses or risking damage to company''s reputation. In doing this, management considers both normal and stressed conditions. Management monitors the rolling forecast of the company''s liquidity position on the basis of expected cash flows. This monitoring includes financial ratios and takes into account the accessibility of cash and cash equivalents.

The company has access to funds from debt markets through loan from banks. The company invests its surplus funds in bank deposits.

The following table shows the maturity analysis of the Company''s financial liabilities based on contractually agreed undiscounted cash flows along with its carrying value as at the Balance Sheet date.

Market risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of fluctuation in market prices. These comprise three types of risk i.e. currency rate, interest rate and other price related risks. Financial instruments affected by market risk include loans and borrowings, deposits, investments, and derivative financial instruments. Regular interaction with bankers, intermediaries and the market participants help us to mitigate such risk.

i) Foreign currency risk

The company makes payment in foreign currency for material imported. The transactions in foreign currency constitute very small proportion of total transaction. Hence, foreign exchange risk is not material market risk to the Company. During the period under audit or in comparative period presented the company has not made any derivative financial instruments related transaction to cover foreign exchange risk or otherwise.

The company did not have any unhedged foreign currency exposure as on 31/03/2024 or any other earlier two preceding years.

ii) Interest rate risk exposure

Interest rate risk is the risk that the fair value or future cash flows on a financial instrument will fluctuate because of changes in market interest rates. The management is responsible for the monitoring of the company''s interest rate position. Various variables are considered by the management in structuring the company''s investment to achieve a reasonable competitive cost of funding. Only interest bearing loan outstanding is small amount of loan against vehicle bearing fixed interest. The company has not borrowed any other funds bearing interest.

NOTE 30 (ii): CAPITAL MANAGEMENT

(a) Risk management

The Company''s capital comprises equity share capital, share premium, retained earnings attributable to equity holders.

The Company''s objectives when managing capital are to safeguard their ability to continue as a going concern, so that they can continue to provide returns for shareholders and benefits for other stakeholders and maintain an optimal capital structure to reduce the cost of capital.

The company had incurred heavy loss in past resulting in complete erosion of its net worth. Net worth has turned positive from year ended on 31/03/2018. But the company is not yet in position to pay dividend to share holder.

The accompanying notes are an integral part of the financial statements

As per our report of even date For and on behalf of the Board of Directors

For Godbole & Co. Niraj Chandra Deepa Agarwal

Chartered Accountants Chairman and Director

Managing Director DIN: 00452947

DIN: - 00452637

Ashutosh Godbole Snehal Mohite Sagar Mohite

Proprietor Chief Financial Officer Company Secretary

(M. No. 104822) PAN - AVOPJ4997N M. No. F11632

UDIN NO- -24104822BJZXIZ6906

Place : Satara Place : Satara

Date : 28th May 2024 Date : 28th May 2024

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Mar 31, 2015

1. Terms/rights attached to equity shares.

The company has only one class of equity shares at par value of Rs. 10/- per share. Each holder of equity shares is entitled to one vote per share. In the event of liquidation of the company, the holders of equity shers will be entitled to receive remaining assets of the company, after distribution of all preferantial amount. the distribution will be in proporation to the number of equity shares held by the shareholders.

2. Contingent Liabilities : Gurarntee executed in favour of customs for EPCG has been expired and unascertained duty for unfulfilled export obligation is outstanding.

3. The provisions of Employees State Insurance Act are not applicable to the Company.

4. Net deferred tax has not been recognised in view of uncertainty about future taxable income against asset which the deferred tax asset can be realised.

5. C.I.F. value of imported west paper Rs. 49,39,355.06 (Rs.41,73,614.43)

6. Consumption of Raw Material for the year 2014-2015

7. Related Party Disclosure :

List of the parties with whom transactions have taken place during the year. -

a. Releted Parties

1) Kay Bouvet Engineering Ltd. - Unit I & III,

2) Kay Nitroxygen Pvt Ltd.

b. Key Managerial Personnel -

1) Mr. Niraj Chandra, Chairman and Managing Director

2) Ms. Deepa Agarwal, Director & Relative

3) Mr. Sagar Mohite, Company Secretary

4) Mr. Ganesh Hari Rotithor, Chief Financial Officer

8. Segmentwise Reporting :

The company has mainly two divisions viz Paper and power. During the current year 2014-15 only paper Division was operational, hence segmentwise results are not given

9. The previous year figures have been re-grouped/ reclasified to confirm to current year classification Note : Figures in bracket pertain to previous year or reverse impact

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Mar 31, 2014

Note 1 : Contingent Liabilities : Gurarntee executed in favour of customs for EPCG has been expired and unascertained duty for unfulfilled export obligation is outstanding.

Note 2 : The provisions of Employees State Insurance Act are not applicable to the Company.

Note 3 : Net deferred tax has not been recognised in view of uncertainty about future taxable income against asset which the deferred tax asset can be realised.

Note 4 : C.I.F. value of imported west paper Rs. 41,73,614.43 (Rs.1,54,36,753)

Note 5 : Related Party Disclosure :

List of the parties with whom transactions have taken place during the year. -

a. Associate Companies -

1) Kay Bouvet Engineering Ltd. - Unit III,

2) Kay Nitroxygen Pvt Ltd.

b. Key Management Personnel -

1) Mr. Niraj Chandra, Chairman and Managing Director

2) Ms. Deepa Agarwal, Director & Relative

Note 6 : Segmentwise Reporting :

The company has mainly two divisions viz Paper and power. During the current year 2013-14 only paper Division was operational, hence segmentwise results are not given.

Note 7 : the previous year figures have been re-grouped/ reclasified to confirm to current year classification

Note : Figures in bracket pertain to previous year or reverse impact

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Mar 31, 2013

Note 1 : Contingent Liabilities : Gurarntee executed in favour of customs for EPCG has been expired and unascertained duty for unfulfilled export obligation is outstanding.

Note 2 : The provisions of Employees State Insurance Act are not applicable to the Company.

Note 3 : Net deferred tax has not been recognised in view of uncertainty about future taxable income against asset which the deferred tax asset can be realised.

Note 4 : C.I.F. value of imported west paper Rs. 1,54,36,753 (Rs.66,46,010)

Note 5 : Related Party Disclosure :

List of the parties with whom transactions have taken place during the year.

a. Associate Companies -

1) Kay Bouvet Engineering Ltd. - Unit III,

2) Kay Nitroxygen Pvt Ltd.

b. Key Management Personnel -

1) Mr. Niraj Chandra, Chairman and Managing Director

2) Ms. Deepa Agarwal, Director & Relative

1) Details of Transactions are as follows :-

a) With Associate Companies -

b) With Key Management Personnel - NIL,

2) Outstanding Balance as on 31.03.2013 :

a) Associate Companies - NIL

b) Key Management Personnel - NIL

Note 6 : Segmentwise Reporting :

The Company has mainly two Divisions viz Paper and Power. During the current year 2012-13 only Paper Division was operational, hence segmentwise results are not given.

Note 7 : The previous year figures have been re-grouped /reclassified to conform to current year classification.

Note 8 : Figures in bracket pertain to previous year or give reverse impact.

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Mar 31, 2012

A Terms/rights attached to equity shares

The company has only one class of equity shares a par value of Rs. 10 per share. Each holder of equity shares is entitled to one vote per share. In the event of liquidation of the Company, the holders of equity shares will be entitled to receive remaining assets of the Company, after distribution of all preferential amount. The distribution will be in proportion to the number of equity shares held by the shareholders.

* In absence of any information from the vendors with regard to their registration under the Micro, Small and Medium Enterprises Developement act 2006, unable to determine, but the payments are released within credit extended by the vendors and there is no liability towards interest on delayed payments during the year under the said act. There is also no amount of outstanding intrest In this regard brought forward from previous year.

Note 1.: Contingent Liabilities : Gurarntee executing in favour of customs for EPCG has been expired and unascertained duty for unfulfilled export obligation is outstanding.

Note 2. : The provisions of Employees State Insurance Act are not applicable to the Company.

Note 3. : Net deferred tax has not been recognised in view of uncertainty about future taxable income against asset which the deferred tax asset can be realised.

Note 4. : C.I.F. value of imported west paper Rs. 66,46,010 (Rs. 24,50,464)

Note 5. Related Party Disclosure :

List of the parties with whom transactions have taken place during the year.

a. Associate Companies - 1] Kay Bouvet Engineering Pvt Ltd. - Unit m, 2] Kay Nitroxygen Pvt Ltd

b. Key Management Personnel - Mr. Niraj Chandra (C.M.D.), Ms. DeepaAgarwal (Director & Relative) Details of Transactions are as follows (Rs.ln Lac)

Key Management Personnel - NIL,

1] Purchase from Associate Companies - NIL,

2] Outstanding Balance as on 31.03.12 - Key Management Personnel - NIL, Associate Companies - NIL

Note 6. The Financial Statement for the year ended 31 March 2011 had been prepared as per the then applicable pre-revised schedule VI to the companies act 1956. Consequent to notification of revised schedule VI under the companies act 1956, the financial statements for the year ended 31 March 2012 are prepared as per revised schedule VI. Accordingly, the previous year figures have also been reclassified to conform to this year's classification. Adopotion of revised schedule VI to previous year figures does not impact recognition and measuremetn principals followed for previous year of financial statements.

Note 7.: Figures in bracket pertain to previous year or give reverse impact.

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Mar 31, 2010

1. Contingent Liabilities : Gurarntee executing in favour of customs for EPCG has been expired and unascertained duty for unfulfilled export obligation is outstanding.

2. The provisions of Employees State Insurance Act are not applicable to the Company.

3. Net deferred tax has not been recognised in view of uncertainty about future taxable income against asset which the deferred tax asset can be realised.

4. C.I.F. value of imports Rs. Nil ( Rs. 11,74,570 ).

5. Basic & Diluted Earning Per Share of Rs.10 each after extra-ordinary item Re. 0.80 (Rs.2.21).

6. Related Party Disclosure :

List of the parties with whom transitions have taken place during the year.

a. particulars of Associate Companies

1. Kay Bouvet Engineering Pvt Ltd. - Unit III 2] Kay Nitrorygen Pvt Ltd

b. Key Management Personnel

Mr. Niraj Chandra Chairmen & Managing Director

Ms. Deepa Agarwal Director & Relative

7. Segmentwise Reporting

The Company has mainly two Divisions, Paper And Power Division. However during the year only Paper Division was operational, hence segmentwise results are not given :

8. Information regarding Capacity, Production, Stocks and Sales -

9. Refer Annexure for additional information pursant to part IV of Schedule VI to the Companies Act, 1956.

10. Figures in bracket pertain to previous year or give reverse impact.