Fair value hierarchy

The land is in the nature of vacant land situated at Boisar, the fair value of which has been determined by external Chartered Engineer, having appropriate recognised professional qualifications and recent experience in the location and category of the property being valued. The Fair value measurement of the property has been categorised as Level 3 fair value based on the inputs to the valuation technique used. [Refer Note 2(k)]

Description of valuation technique used

The Company obtains Independent Valuations of its investment property as at the year end. The fair value of the investment property have been determined by registered valuer, who have considered the prevalent prices based on market enquiries for similar and comparable properties.

4G ASSET HELD FOR SALE

During the previous year, the Company executed the sale of its assets at Taloja plant and the resultant gain in respect of which was recognised in the statement of profit and loss ' 459.19 lakhs (Refer Note 23). There were no liabilities directly associated with assets classified as held for sale.

Terms/rights attached to equity shares

The Company has only one class of equity shares with a par value of Re. 1/- per share. Each holder of equity shares is entitled to one vote per share.

The Company declares and pays dividends in Indian Rupees.

In the event of liquidation of the company, the holders of equity shares will be entitled to receive any of the remaining assets of the company after distribution of all preferential amounts. However, no such preferential amounts exist currently. The distribution will be in proportion to number of equity shares held by the shareholders.

No shares have been allotted without payment being received in cash or by way of bonus shares during the period of five years immediately preceding the Balance Sheet date.

*Late Subhash Dandekar (person belonging to the promoter group) passed away during the quarter ended 30th September, 2024 and the procedure for transmission of his shares is under process.

Proposed dividend

In view of the Company’s performance and for future strategic initiatives, the Board has not recommended any dividend for the financial year ended 31 March 2025. (31 March 2024 : Re.0.50 per share on Face Value of Re.1 (i.e.50%)).

Capital reserve

Capital reserve represents the grant received from government for set up of plant in specific area.

Securities premium

Securities premium is used to record the premium received on issue of shares. It is utilised in accordance with the provisions of the Companies Act, 2013.

General reserve

The general reserve is used from time to time to transfer profits from retained earnings for appropriation purposes. There is no policy of regular transfer.

Retained earnings

This Reserve represents the cumulative profits of the Company and effects of remeasurement of defined benefit obligations. This Reserve can be utilized in accordance with the provisions of the Companies Act, 2013.

Other comprehensive income

This Reserve represents the cumulative gains (net of losses) arising on the revaluation of Equity Instruments measured at Fair Value through Other Comprehensive Income, net of amounts reclassified, if any, to Retained Earnings when those instruments are disposed of.

Capital management

The Company’s objectives when managing capital are to (a) maximise shareholder value and provide benefits to other stakeholders and (b) maintain an optimal capital structure to reduce the cost of capital.

For the purposes of the Company’s capital management, capital includes issued capital, securities premium and all other equity reserves attributable to the equity holders.

The terms of overdraft/working capital demand loan/bills discounting are as follows:-

The rate of interest on overdraft facility from MUFG Bank Ltd is 3 months MIBOR agreed spread bearing an average rate of 8.51% for 31 March 2025 (31 March 2024: 9.45%)

The rate of interest on cash credit facility from Mizuho Bank is 1 year MCLR agreed spread payable at monthly rests bearing an average rate of 10.60% for 31 March 2025 (31 March 2024 : 9.03%)

The rate of interest on vendor bills discounting from Mizuho Bank is based on market condition bearing an average rate of 8.78 % for 31 March 2025 (31 March 2024 : 9.22%)

The rate of interest on vendor bills discounting from Sumitomo Mistui Banking Corporation bearing an average rate of 9.30 % for 31 March 2025 (31 March 2024 : 9.30%)

Utilization of borrowings from Banks and financial institutions

Borrowings from Banks and financial institutions are utilized for the specific purpose for which it were taken.

Wilful Defaulter

The Company has not been declared a wilful defaulter by any bank or financial institutions or any other lender.

The Company’s pending litigations comprise of proceedings pending with direct tax authorities (pertaining to disallowance of additional depreciation, expenses, etc.) and indirect tax authorities (pertaining to non submission of form ‘C’ and form ‘F’, input tax disallowance, misclassification of goods etc.). The Company has reviewed all its pending litigations and proceedings and believes that these claims are not tenable against the Company and hence, no provision is considered necessary. It is not practicable for the Company to estimate the timing of cash outflows, if any, in respect of the above, pending resolution of the respective proceedings, as it is determinable only on receipt of judgments/decisions pending with various forums/ authorities.

On 13.03.2023, the Company has received two demand notices aggregating ' 481.08 Lakhs (includes tax of ' 51.93 lakhs, interest ' 53.92 lakhs and penalty ' 103.87 lakhs for the period 01.04.2015 to 31.03.2016 and tax of ' 67.13 lakhs, interest ' 69.99 lakhs and penalty ' 134.24 lakhs for the period 01.04.2016 to 31.03.2017) for Local Body Tax from the Vasai Virar City Municipal Corporation on account of disallowance exemption for tax on purchases from unregistered local dealer and job work charges done by local unregistered job workers.

The Company has been legally advised that these claims are not tenable against them and has filed writ petition in the High Court of Bombay and also has obtained a stay on these demands.

On 10th August 2023 , the Mumbai High Court ordered that since there is remedy of an appeal available, the petitioner should first file an appeal with Commissioner (Appeal). Thereafter, the Company has filed an appeal with Commissioner on 31.08.2023. Personal Hearing before Commissioner (Appeals) has been held subsequently. Considering the arguments, Commissioner (Appeals) has asked the officer to recheck the merits of the case. Hearing with chief commissioner was held post which additional documents were submitted. The Company has submitted its final submission on 22.04.2025, outcome of which is awaited.

Note: Including interest and penalty, where applicable, upto the date of orders. c. Bank Guarantees

Bank guarantees as on 31 March 2025 is ' 56.14 lakhs (31 March 2024: ' 55.54 lakhs)

29 EXCISE REMISSION AND BUDGETARY SUPPORT AT JAMMU :

The Jammu and Kashmir High Court delivered a judgement dated 23 December 2010, quashing the Excise Notification No19/2008-CE & 34/2008-CE applicable to the undertakings set up in Jammu which restricted the quantum of excise duty remission, at prescribed value addition percentage, and upheld the entitlement of total exemption from excise duty. Based on the grounds laid down in the said judgement, by the Hon’ble High Court, rebate of excise duty, being the duty on assessable value of goods, net of Cenvat Credit was recognized in the books till 31 January 2013.

Pending final disposal, in January 2013, the Hon’ble High Court directed the department to release 50% of the amount due to manufacturers subject to approval of the jurisdictional commissioner for manufacturer’s solvency. Post such order the company has claimed excise rebate as per the then quashed notification from February 2013 to June 2017.

The validity of the said notification, previously quashed by High Court, has subsequently been upheld by the Supreme Court in its judgement dated 22 April 2020. As per the said notification, units having higher value addition than the prescribed percentage are entitled to a special rate fixation for excise duty remission. The Company’s application for determination of Special Rate for the year FY 2008-09 was rejected by the authorities in the year 2010 and was sub-judice with Division Bench 1 CESTAT Chandigarh. In June 2023 the Division bench gave a favourable judgement for the company asking the AO to consider value additions as per CA certificate. The AO without considering the order passed a demand order for differential tax, The company filed an appeal against the AO order with commissioner appeals The Commissioner Appeal passed the Order dismissed the appeal filed the company and upheld its old order without considering the merit of the case on 01st April 2024. The order was received on 08th April 2024. The company believes this Order was appealable in view of the said judgment of Hon’ble Tribunal dated 06.06.2023. Invoking the said CESTAT judgment, it would be arguable in favour of Kokuyo Camlin, as the said CESTAT’s order, has not been appealed against before High Court.

The Company has filled the appeal with CESTAT on 03 June 2024 by paying additional deposit of 2.5% (' 19,75,962/-) on 23rd May 2024 in addition to the deposit of 7.5% (' 59,27,886/-) made at the time of CIT(Appeals) in July 2023.

The above application, filed for out of turn hearing of the appeal, was listed before Hon’ble CESTAT-Chandigarh (Excise Division Bench), comprising of Hon’ble Members, Shri S.S. Garg, M(J) and Shri P. Anjani Kumar, M(T), on 19.09.2024 & 06.02.2025. Considering the submissions from both sides, Hon’ble Bench has allowed application for early hearing and the matter has been directed to be listed for hearing on 17.07.2025.

After adjudication of the appeal to be filed by the company, the subsequent applications for the years FY 2009-10 to FY 2017-18 will be decided by the authorities. The net gain which shall accrue to the Company on account of additional remission due to special rate fixation for the period February 2013 to June 2017 as offset by net loss due to excess credit, if any, availed until 31 January 2013 is not presently ascertainable.

31 DUES TO MICRO, SMALL AND MEDIUM ENTERPRISES

The Management has identified enterprises which have provided goods and services to the Company and which qualify under the definition of micro, small and medium enterprises, as defined under Micro, Small and Medium Enterprises Development Act, 2006. Accordingly, the disclosure in respect of the amounts payable to such enterprises as at 31 March 2025 has been made in the financial statements based on information received and available with the Company.

The Government of India, on 20 September 2019, vide the Taxation Laws (Amendment) Ordinance 2019, inserted a new Section 115BAA in the Income Tax Act, 1961, which provides an option to the Company for paying Income Tax at reduced rates as per the provisions/conditions defined in the said section ("New Tax Regime''). The Company has opted for the New tax regime w.e.f. financial year ended 31 March 2024 and accordingly the provision of tax and deferred tax liabilities has been recognized as per New Tax Regime.

After analysing above factors for each of such uncertain tax treatments, where the Company expects that the probability to sustain its position on ultimate resolution of such uncertain tax treatment is remote, the Company ensures that such uncertain tax positions are adequately provided for in the Company’s financial Statements.

34 EMPLOYEE BENEFITS :Defined Contribution Plans

Company’s contributions paid/payable during the year to provident fund, ESIC and superannuation fund are recognised in the statement of profit and loss. The contributions charged to the statement of profit and loss is ' 537.58 lakhs. (31 March 2024 ' 480.71 lakhs)

Defined Benefit Plans

Company’s liabilities towards gratuity and leave encashment are determined on actuarial basis using the projected unit credit method, which consider each period of service as giving rise to an additional unit of benefit and measure each unit separately to build up the final obligation. Obligation is measured at the present value of estimated future cash flow using a discount rate that is determined by reference to market yields at the Balance Sheet date on government bonds where the currency and terms of the government bonds are consistent with the currency and estimated terms of the defined benefit obligation.

Description of the Plan

The Company has covered its gratuity liability by a Group Gratuity Policy named ‘Employee Group Gratuity Assurance Scheme’ issued by LIC of India. Under the plan, employees at retirement are eligible for benefit, which will be equal to 15 days salary for each completed year of service. Thus, it is a defined benefit plan and the aforesaid insurance policy is the plan asset.

B. Measurement of fair valuesFair value hierarchy/Valuation technique

No financial instruments are recognised and measured at fair value, except derivative contracts which are measured at fair value through Statement of profit and loss and certain investments in equity instruments which are measured at fair value through OCI.

For all the financial assets and liabilities referred above that are measured at amortised cost, their carrying amounts are reasonable approximations of their fair values. The carrying amounts of loans, trade receivables, trade payables, cash and cash equivalents, other bank balances, other financial assets, other financial liabilities are considered to be the same as their fair values due to their short term nature.

The fair values of the financial assets and liabilities are included at the amount at which the instrument could be exchanged in a current transaction between willing parties, other than in a forced or liquidation sale.

The Company has established the following fair value hierarchy that categorises the values into 3 levels. The inputs to valuation techniques used to measure fair value of financial instruments are:

Investments in quoted equity shares are measured at fair value through other comprehensive income using quoted market price as at reporting date. These instruments are classified as level 1. For investments in non quoted equity shares the Company obtained Independent Valuations of underlying assets of the entity to determine the fair value of Land and Building and arrived at fair value of its investments. These instruments are classified as level 3.

Level 1: This hierarchy uses quoted (unadjusted) prices in active markets for identical assets or liabilities. The fair value of all equity instruments which are traded in the stock exchanges is valued using the closing price or dealer quotations as at the reporting date.

Level 2: The fair value of financial instruments that are not traded in an active market (For example, over the counter derivatives) is determined using valuation techniques which maximize the use of observable market data and rely as little as possible on company specific estimates. If all significant inputs required to fair value an instrument are observable, the instrument is included in Level 2.

Level 3: If one or more of the significant inputs is not based on observable market data, the instrument is included in Level 3.

C Financial risk management Risk management framework

The Company’s business activities expose it to a variety of financial risks, namely credit risk, liquidity risk and market risks. The Company’s senior management and key management personnel have the ultimate responsibility for managing these risks. The Company has a process to identify and analyse the risks faced by the Company, to set appropriate risk limits and to control and to monitor risks and adherence to limits. Risk management policies and systems are reviewed regularly to reflect changes in market conditions and the Company’s activities.

i Management of the credit risk

Credit risk is the risk of financial loss to the Company if a customer or counterparty to a financial instrument fails to meet its contractual obligations. Credit risk is managed through credit approvals, establishing credit limits and continuously monitoring the credit worthiness of customers to which the Company grants credit terms in the normal course of business.

Trade Receivables

The Company’s exposure to credit risk is influenced mainly by the individual characteristics of each customer. Concentrations of credit risk with respect to trade receivables are limited, due to the Company’s customer base being large. All trade receivables are reviewed and assessed for default on a regular basis. The historical experience of collecting receivables, supported by the level of default, is that the credit risk is low.

Exposures to customers outstanding at the end of each reporting period are reviewed by the Company to determine incurred and expected credit losses. The Company assesses and manages credit risk based on the Company’s credit policy. Under the Company’s credit policy, each new customer is analysed individually for credit worthiness before the Company’s standard payment and delivery terms and conditions are offered. The Company assesses on a forward looking basis the expected credit losses associated with its assets carried at amortised cost. For trade receivables, the Company applies the simplified approach permitted by Ind AS 109 Financial Instruments, which requires expected lifetime losses to be recognised from initial recognition of the receivables. When determining whether the credit risk of a financial asset has increased significantly since initial recognition and when estimating expected credit losses, the Company considers reasonable and supportable information that is relevant and available without undue cost or effort. This includes both quantitative and qualitative information and analysis, based on the Company’s historical experience and informed credit assessment and including forward looking information.

The Company’s trade receivables are geographically dispersed. The Management do not believe there are any particular customers or group of customers that would subject the Company to any significant credit risks in the collection of accounts receivable.

The carrying amount of trade receivables represents the maximum credit exposure. The maximum exposure to credit risk was ' 7,600.66 lakhs and ' 8,266.50 lakhs as at 31 March 2025 and 31 March 2024 respectively.

Cash and cash equivalents

The Company is also exposed to credit risks arising on cash and cash equivalents and term deposits with banks. The Company believes that its credit risk in respect of cash and cash equivalents and term deposits is insignificant as funds are invested in term deposits at pre -determined interest rates for specified period of time. For cash and cash equivalents and other bank balances, only high rated banks are accepted.

Other Financial Assets:

The Company periodically monitors the recoverability and credit risks of its other financial assets including employee loans, deposits and other receivables. The Company evaluates 12 month expected credit losses for all the financial assets for which credit risk has not increased. In case credit risk has increased significantly, the Company considers life time expected credit losses for the purpose of impairment provisioning.

ii 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 to managing liquidity is to ensure that it will have sufficient funds to meet its liabilities when due without incurring unacceptable losses.

The Company maintains a cautious funding strategy. This is the result of cash generated from the business. Cash flow from operating activities provides the funds to service the working capital requirement. The Company also has adequate borrowings limits/funding from long term/short term sources. Accordingly, low liquidity risk is perceived.

Exposure to liquidity risk

The following are the remaining contractual maturities of financial liabilities at the reporting date. The amounts are gross and undiscounted, and include estimated interest payments and exclude the impact of netting agreements.

iv Market risk - Interest rate risk:

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The Company’s exposure to the risk of changes in market interest rates relates primarily to the Company’s short term borrowings (excluding commercial paper) with floating interest rates. The Company constantly monitors the credit markets and rebalances its financing strategies to achieve an optimal maturity profile and financing cost.

I f the rate is decreased by 100 bps profit will increase by an equal amount. Interest rate sensitivity has been calculated assuming the borrowings outstanding at the reporting date have been outstanding for the entire reporting period.

v Market risk - Other market price risks

The Company is exposed to equity price risk, which arises from Fair Value through Other Comprehensive Income (FVOCI) equity securities which are listed on Bombay Stock Exchange (BSE) and National Stock Exchange (NSE) in India. For such investments, classified as FVOCI , a 2% increase in the BSE index at 31 March 2025 would have increased equity by ' 26.86 lakhs (31 March 2024 : ' 14.28 Lakhs); an equal change in the opposite direction would have decreased equity by ' 26.86 lakhs (31 March 2024 : ' 14.28 lakhs).

37 OPERATING SEGMENTS

The Company is in the business of manufacturing, trading and selling of stationery. It manufactures and sells scholastic products, writing instruments, notebooks, marker pens, inks, fine-art colours and accessories, hobby colours, pencils and other stationery products. The Management is of the view that the risks and returns for these products are not significantly different. Accordingly, the Company has a single reportable segment i.e. ‘Consumer products’ as per Ind AS 108 ‘Operating Segments’ which is reviewed by Chief Operating Decision Maker (CODM). The Chief Executive Officer / Managing Director along with Senior Corporate Officers Committee is the CODM of the Company. Further, export sales are not significant and there is no reportable secondary segment.

38 IND AS 115 - REVENUE FROM CONTRACTS WITH CUSTOMERS

(A) The Company is in the business of manufacturing, trading and selling of stationery. All sales are made at a point in time and revenue recognised upon satisfaction of the performance obligations which is typically upon dispatch/ delivery depending on the contractual terms with the customers. Accruals for discounts/incentives are estimated (using the most likely method) based on accumulated experience and underlying schemes and agreements with customers. The Company has a credit evaluation policy based on which the credit limits for the trade receivables are established and the Company does not give significant credit period resulting in no significant financing component.

41 DISCLOSURE OF INTERMEDIARIES

a The Company has not advanced or loaned or invested funds (either from borrowed funds or share premium or any other sources or kind of funds) 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:

(a) 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

(b) provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries.

b The Company has not received any funds from any person(s) or entity(ies), including foreign entities (“Funding Parties’’), with the understanding, whether recorded in writing or otherwise, that the Company shall:

(a) directly or indirectly, lend or invest In other persons or entities identified in any manner whatsoever by or on behalf of the Funding Parties (“Ultimate Beneficiaries’’); or

(b) provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

42 ADDITIONAL REGULATORY INFORMATION PURSUANT TO THE REQUIREMENT IN DIVISION II OF SCHEDULE III TO THE COMPANIES ACT 2013

i) No proceedings have been initiated or pending against the company for holding any benami property under the Benami Transactions (Prohibitions) Act, 1988 (45 of 1988) and the rules made thereunder.

ii) The Company has no transactions with companies struck off under section 248 of the Companies Act, 2013 or section 560 of the Companies Act, 1956.

iv) The Company is in compliance with the number of layers prescribed under clause (87) of section 2 of the Companies Act read with the Companies (Restriction on number of Layers) Rules, 2017.

v) The Company has not surrendered or disclosed any such transaction which is not recorded in the books of accounts 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).

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

vii) The Company does not have any such transaction which are not recorded in the books of accounts and 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).

viii) The Company has not revalued its property, plant and equipment’s and intangible assets and investment property.

43 During the year ended 31 March 2025, the management, following an internal assessment, suo moto, had identified discrepancies between physical quantity recorded in the books of account and the physical inventory. The loss of ' 2,356.81 lakhs has been recognised during the year as ' 819.92 lakhs in cost of material consumed, ' 1,324.37 lakhs in changes in inventories and ' 212.52 lakhs towards indirect taxes.

The Company engaged an independent external agency on 7 November 2024 to conduct a forensic audit for the period April 2021 to September 2024 at one of its plants to investigate the discrepancies. The report of the said agency dated 11 February 2025 is available on the website of the Stock Exchange along with management comments. Following the findings of the forensic investigation, management has undertaken appropriate disciplinary actions, including the termination of certain employees implicated in the matter.

Considering the nature of the discrepancies identified in the report, no adjustment is made for the comparative periods in the financial statements as the impact is not precisely ascertainable.