2.1(j). Provisions, Contingent Liabilities and Contingent Assets:

A provision is recognized when the Company has a present obligation as a result of a past event,

It is probable that an outflow of resources will be required to settle the obligation in respect of which
a reliable estimate can be made. Provisions are not discounted to its present value and are determined
based on the best estimate required to settle the obligation at the Balance Sheet date.

A disclosure of contingent liability is made when there is a possible obligation or a present obligation
that may, but probably will not, require an outflow of resources.

Contingent Assets are neither recognized nor disclosed in the financial statements.

2.2 Investment in subsidiaries:

The Company does not have any subsidiary.

2.3 Employee Benefits:

All short term employee benefit plans such as salaries, wages, bonus, leave encashment and medical
benefits which fall due within 12 months of the period in which the employee renders the related
services which entitles him to avail such benefits are recognized on an undiscounted basis and
charged to the profit & loss account.

The Company has provided for employee benefit relating to gratuity.

Defined Benefit Plans (Gratuity)

The Company has provided for employee benefit relating to gratuity on accrual basis.

2.4 Earnings and Expenditure in Foreign Currency:-

Transactions in foreign currencies are recorded at the exchange rates prevailing on the date of
transaction. Foreign currency monetary assets and liabilities are translated at year-end exchange rates.
Exchange difference arising on settlement of transactions and translation of monetary items are
recognized as income or expense in the year in which they arise.

In respect of forward exchange contracts the difference between the forward rate and the exchange
rate at the inception of the contract is recognized as income or expense over the period of the
contract.

Gains or losses on cancellation / settlement of forward exchange contracts are recognized as income
or expense.

2.5 Financial & Derivative Instruments:

i) The Company has not entered into any Forward Exchange Contracts (being a derivative
instrument),

ii) Amount payable in foreign currency on account of import of Goods and its equivalent Indian
Rupees

iii) Amount receivable in foreign currency on export of goods and its equivalent Indian Rupees.

2.6 Segment Disclosure:

The Company operates primarily in the Packaging business hence has only single reportable business
segment.

2.8 Disclosure required under Micro, Small and Medium Enterprises Development Act, 2006 (the
Act) are given as follows.:

The company has not received any information or intimation from its creditors if they are covered
under the Micro, Small and Medium Enterprises Development Act, 2006.

2.9 Inventories:

The Company has Inventories of Rs. 566.13 Lakhs as on 31^st March 2025. The Inventories has been
pledged as securities for Bank Overdraft facility from Bank.

2.10 Disclosure on Property Plant & Equipment:

i. Company has no assets that are required from the active use and held for disposal

ii. There are no temporarily idle property, plant & equipment’s

iii. The company has not revalued any class of property, plant & equipment’s.

iv. Company has no individual intangible asset that is material to the financial statements of the
enterprise as a whole.

v. Company has taken Term Loan from Bank for acquisition of Property Plant & equipment
and to that extent company have restrictions on the title of the property, plant & equipment.

2.11 Other statutory information:

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

b. The Company does not have any transactions with companies struck off.

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

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

e. 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 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

i. provide any guarantee, security or the like to or on behalf of the Ultimate
Beneficiaries

ii. 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 Group shall

iii. 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

iv. Provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries,

v. 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 or survey or any
other relevant provisions of the Income Tax Act, 1961.

2.12 During the year, depreciation on fixed assets has been provided based on straight Line method of
Schedule II to the Act.

2.13. In the opinion of the Management the Current Assets, Loans & Advances have realization value in
the ordinary course of business at least equal to which they are stated in Balance Sheet.

2.14The Figures of Sundry Debtors, Sundry Creditors, Deposits and Advances and others are subject to
confirmation and reconciliation, if any.

2.15 No material Impairment of Assets has been identified by the Company and as such no provision is

required as per Accounting Standards (AS 28) issued by the Institute of Chartered India.

2.16 Previous year figures have been regrouped/ reclassified where ever required.

2.17 Schedules annexed here with are forming part of Balance Sheet and Profit & Loss Account and has

been duly authenticated.

32 STATEMENT OF GRATUITY EXPENSES

(All amounts in Indian Rupees in Lakhs, unless otherwise stated)

Employee benefit Plan
(A) Defined benefit Plan

The defined benefit plan operated by the Company is as below:

Retiring gratuity

The defined benefit plans expose the Company to a number of actuarial risks as below:

(a) Investment risk: The present value of the defined benefit plan liability is calculated using a discount rate
determined by reference to Government Bonds Yield. If plan liability is funded and return on plan assets is below this
rate, it will create a plan deficit.

(b) Interest risk: A decrease in the bond interstate (discount rate) will increase the plan liability.

(c) Mortality risk: The present value of the defined benefit plan liability is calculated by reference to the best estimate
of the mortality of plan participants. For this report the Company has used Indian Assured Lives Mortality (2012-14)
ultimate table.

(d) Salary risk: The present value of the defined benefit plan liability is calculated with the assumption of salary
increase rate of plan participants in future. Deviation in the rate of increase of salary in future for plan participants from
the rate of increase in salary used to determine the present value of obligation will have a bearing on the plan's liability.

(B) Defined Contribution Plan
Provident fund and pension

In accordance with the Employee’s Provident Fund and Miscellaneous Provisions Act, 1952, eligible employees of the
Company are entitled to receive benefits in respect of provident fund, a defined contribution plan, in which both
employees and the Company make monthly contributions at a specified percentage of the covered employees’ salary.
The contributions, as specified under the law, are made to the employee provident fund organization (EPFO).

For DHANESH AMRITLAL & ASSOCIATES For and on behalf of the Board

Chartered Accountants Kahan Packaging Limited

Firm's Registration No. 142800W CIN :L36100MH2013PLC240584

Dhanesh Savani Mr.Prashant Dholakia Mr.Rohit Dholakia

Proprietor Managing Director Whole Time Director

Membership No. 111805 06428389 05302050

UDIN: 25111805BMJRPC3826 Mr.Jainam Dholakia Miss. Pooja Burad

Place: Mumbai CFO Company Secretary

Date :16-05-2025 Place: Mumbai Mem No.A71849

Date :16-05-2025