Q. Provisions, contingent liabilities and contingent
assets

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

The amount recognised as a provision is the best
estimate of the consideration required to settle the
present obligation at the end of the reporting period,
taking into account the risks and uncertainties

surrounding the obligation. When a provision is
measured using the cash flows estimated to settle the
present obligation, its carrying amount is the present
value of those cash flows (when the effect of the time
value of money is material).

When some or all of the economic benefits required
to settle a provision are expected to be recovered
from a third party, a receivable is recognised as an
asset if it is virtually certain that reimbursement will
be received and the amount of the receivable can be
measured reliably.

A disclosure for a 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 embodying economic benefits or the amount
of such obligation cannot be measured reliably. When
there is a possible obligation or a present obligation
in respect of which likelihood of outflow of resources
embodying economic benefits is remote, no provision
or disclosure is made.

R. Cash flow statements and Cash and cash
equivalents

Cash flows are reported using the indirect method,
whereby profit/ (loss) before tax is adjusted for the

effects of transactions of non-cash nature and any
deferrals or accruals of past or future cash receipts or
payments. The cash flows from operating, investing
and financing activities of the Company are segregated
based on the available information.

For the purpose of presentation in the cash flow
statement, cash and cash equivalents includes cash
on hand, deposits held at call with financial institutions,
other short-term, highly liquid investments with original
maturities of three months or less that are readily
convertible to known amounts of cash and which are
subject to an insignificant risk of changes in value.

S. Standards (including amendments) issued but not
yet effective:

Ministry of Corporate Affairs (“MCA”) notifies new
standards or amendments to the existing standards
under Companies (Indian Accounting Standards) Rules
as issued from time to time. For the year ended March
31, 2025, MCA has not notified any new standards or
amendments to the existing standards applicable to
the Company.

(i) The average credit period on sale is 20 days. No interest is charged on trade receivables for the first 30 days from the
date of the invoice. Thereafter, interest is charged at 18% per annum on the outstanding balance.

(ii) Before accepting any new customer, the Company has a credit evaluating system to assess the potential customer's
credit quality and defines credit limits by customer. Limits and scoring attributed to customers are reviewed twice
a year. Of the trade receivables balance, C2,104.44 Lakhs (as at March 31, 2024: C2,185.95 Lakhs) is due from
customers who represent more than 5% of the total balance of trade receivables.

(iii) The Company maintains an allowance of credit impaired accounts based on financial condition of the customer, ageing
of customer receivable and overdue, available collaterals and historical experience of collections from customers.
Accordingly, the Company creates provision towards credit impaired trade receivables after recovering the underlying
collaterals. Besides, the Company has used a practical expedient by computing the expected credit loss allowance for
trade receivables based on a historical loss rate method. The historical loss rate takes into account historical credit loss
experience and adjusted for forward-looking information. The expected credit loss allowance is based on the average
loss rate of the collections against the receivables.

14.3 Rights, preferences and restrictions attached to the equity shares

The Company has only one class of issued, subscribed and fully paid up equity shares having a face value of C2 each
per share. Each holder of equity shares is entitled to one vote per share. The dividend (other than interim dividend)
proposed, if any, by the Board of Directors is subject to the approval of the Shareholders in the ensuing Annual
General Meeting. 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 amounts. The distribution will be in proportion to
number of equity shares held by the shareholders.

(i) Term loan from IDBI bank of C8,922.23 Lakhs (31 March 2024: C5,236.94 Lakhs) is secured by way of first pari passu
charge by way of hypothecation on specific moveable plant & machinery procured out of the term loan and is repayable
in 20 equal quarterly instalments starting from 01 August 2024 to 01 May 2029.

(ii) Term loan from IDBI bank of C3,501.49 Lakhs (31 March 2024: Nil) is secured by way of first pari passu charge by way
of hypothecation on specific moveable plant & machinery procured out of the term loan and is repayable in 18 equal
quarterly instalments starting from 01 February 2025 to 01 May 2029.

(iii) Term loan from IDBI bank of C412.34 Lakhs (31 March 2024: Nil) is secured by way of first pari passu charge by way
of hypothecation on specific moveable plant & machinery procured out of the term loan and is repayable in 17 equal
quarterly instalments starting from 01 February 2025 to 01 May 2029.

(iv) Term loan from State Bank of India of C4,456.75 Lakhs (31 March 2024: Nil) is secured by way of first pari passu
charge by way of hypothecation on specific moveable plant & machinery procured out of the term loan and is repayable
in 20 equal quarterly instalments starting from 25 July 2024 to 25 April 2029.

(v) Term loan from Standard Chartered Bank of C2,150.00 Lakhs (31 March 2024: Nil) is secured by way of exclusive
charge by way of hypothecation on existing and future moveable Fixed Assets relating to Tissue Paper Project and is
repayable in 14 equal quarterly instalments starting from 29 June 2026 to 27 September 2029.

C. Other Commitments:

The Company has applied for benefits under Export Promotion Capital Goods (EPCG) scheme to import capital
goods by availing customs duty exemption as per terms of Notification of the Government of India in the Ministry of
Finance (Department of Revenue) No: 16/2015 dated 01.04.2015 under which it has an export obligation of six times
the duty saved on import of capital goods on Free on Board (FOB) basis within a period of six years. In the event of
failure of the export obligation as specified in the said notification and license, the Company is liable to pay duties of
customs proportionate to duty saved amount on total unfulfilled Export Obligation and also interest @ 15% PA. The
management believes that it will be able to comply with aforesaid regulations and hence no adjustments have been
made to the financial statements.

33. Employee Benefits

A. Defined contribution plans:

Provident fund:

The Company contributed C126.33 Lakhs (Previous year: C265.88 Lakhs) to the Provident Fund Trust maintained by
the Company and C610.88 Lakhs (Previous year: C469.14 lakh) to Regional Provident Fund Commissioner, which
was recognised as an expense in Statement of Profit and Loss during the year.

Superannuation:

The Company recognized C11.82 Lakhs (Previous year: C12.78 Lakhs) as an expense towards contribution as
superannuation in the Statement of Profit and Loss during the year.

Employee State Insurance:

The Company recognized C16.32 Lakhs (Previous year: C18.51 Lakhs) as an expense towards Employee State
Insurance in the Statement of Profit and Loss during the year.

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

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

42. Calculation of fair values

The fair values of the financial assets and liabilities are defined as the price that would be received to sell an asset or
paid to transfer a liability in an orderly transaction between market participants at the measurement date. Methods and
assumptions used to estimate the fair values are consistent with those used for the year ended March 31, 2024, except
unquoted equity investment.

Financial assets and liabilities measured at fair value as at Balance Sheet date. The fair values of investments in unquoted
equity investments has been estimated using a NAV method under cost approach.

43. Fair value hierarchy:

The fair value of financial instruments as referred to in Note 42 above have been classified into three categories depending
on the inputs used in the valuation technique. The hierarchy gives the highest priority to quoted prices in active markets for
identified assets or liabilities (Level 1 measurements) and lowest priority to unobservable inputs (Level 3 measurements).

The categories used are as follows:

Level 1 — Quoted prices for identified instruments in an active market.

Level 2 — Directly or indirectly observable market inputs, other than Level 1 inputs; and
Level 3 — Inputs which are not based on observable market data.

This note provides information about how the Company determines fair values of various financial assets and financial
liabilities.

Fair value of the Company's financial assets and financial liabilities that are measured at fair value on a recurring basis.

Some of the Company's financial assets and financial liabilities are measured at the fair value at the end of each
reporting period.

Notes:

i. These investments in equity instruments are not held for trading. Instead, they are held for long term strategic purpose.
Upon the application of Ind AS 109, the Company has chosen to designate these investments in equity instruments as
at FVTOCI irrevocably as the Management believes that this provides a more meaningful presentation for long term
strategic investments, than reflecting changes in fair value immediately in profit or loss.

44. Financial Risk Management and Capital Management

The Company's business activities are exposed to a variety of financials risks, namely Interest rate risk, credit risk, liquidity
risk and foreign currency risk. The Company's senior management has the overall responsibility for establishing and
governing the Company's risk management framework. The Company's risk management policies are established to
identify and analyze the risks faced by the Company, periodically review the changes in market conditions and reflect
the changes in the policy accordingly. The key risks and mitigating actions are overseen by the Board of Directors of
the Company.

A. Interest rate risk

The Company is exposed to interest rate risk because Company borrow funds at both fixed and floating interest rates.
The risk is managed by the Company by maintaining an appropriate mix between fixed and floating rate borrowings.

44. Financial Risk Management and Capital Management (Cont'd)

The sensitivity analysis below have been determined based on the exposure to interest rates for the non-derivative
instruments at the end of the reporting period. For floating rate liabilities, the analysis is prepared assuming the
amount of the liability outstanding at the end of the reporting period was outstanding for the whole year. A 50-basis
point increase or decrease is used when reporting interest rate risk internally to key management personnel and
represents management's assessment of the reasonably possible change in interest rates.

If interest rates had been 50 basis points higher/lower and all other variables were held constant, the Company's:

Profit for the year ended March 31, 2025 would decrease/increase by C101.46 Lakhs (for the year ended March 31,
2024: decrease/increase by C26.18 Lakhs). This is mainly attributable to the Company's exposure to interest rates on
its variable rate borrowings.

B. Credit risk management

Credit risk refers to the risk that a counterparty will default on its contractual obligations resulting in financial loss to the
Company. The Company is exposed to credit risk from its operating activities (primarily trade receivables) and from its
financing activities, including deposits with banks and financial institutions, foreign exchange transactions and other
financial instruments.

Customer credit risk is managed by the Company's established policy, procedures and control relating to the customer
credit risk management. The Company uses financial information and past experience to evaluate credit quality of
majority of its customers and individual credit limits are defined in accordance with this assessment. Outstanding
receivables and the credit worthiness of its counterparties are periodically monitored and taken up on case to case
basis. Considering the historical experience of collecting trade receivables, the Company evaluates the concentration
of risk with respective trade receivables as low.

The credit risk on cash and bank balances and deposits with financial institutions is limited because the counterparties
are banks with high credit ratings assigned by international credit rating agencies.

C. Liquidity risk management

Liquidity risk is the risk that the Company will not be able to meet its financial obligations as they become due. The
Company manages its liquidity risk by ensuring, as far as possible, that it will always have sufficient liquidity to meet its
liabilities when due. Also, the Company has un-utilised credit limits with banks. The Company maintained a cautious
liquidity strategy, with a positive cash balance throughout the year ended March 31,2025 and March 31,2024. Cash
flow from operating activities provides the funds to service the financial liabilities on a day to day basis.

The Company regularly maintains the rolling forecasts to ensure it has sufficient cash on an on-going basis to meet
operational needs. Any short-term surplus cash generated, over and above the amount required for working capital
management and other operational requirements, is retained as cash and cash equivalents (to the extent required)
and any excess is invested in interest-bearing short-term deposits with appropriate maturities to optimise the cash
returns on investments while ensuring sufficient liquidity to meet its liabilities.

The table below provides details regarding the contractual maturities of significant financial liabilities as of March 31,
2025 and March 31,2024:

*Other financial liabilities include deposits received from customers amounting to C2,766.48 Lakhs (March 31,2024:
C3,086.66 Lakhs). These deposits do not have a contractual re-payment term but are repayable on demand. Since,
the Company does not have an unconditional right to defer the payment, these deposits have been classified as
current balances. For including these amounts in the above mentioned maturity analysis, the Company has assumed
that these deposits, including interest thereon, will be repayable at the end of the reporting period. The actual maturity
period for the deposit amount can differ based on the date on which these deposits are settled to customers.

D. Financing facilities

The Company has access to financing facilities (Fund and non-fund based) of which C8,237.12 Lakhs (March 31,
2024: C11,077.00 Lakhs) were unused at the end of the reporting period. The Company expects to meet its other
obligations from operating cash flows and proceeds of maturing financial assets.

E. Foreign currency risk management

The Company undertakes transactions denominated in foreign currencies; consequently, exposures to
exchange rate fluctuations arise.

The carrying amounts of the Company's foreign currency denominated monetary assets and monetary liabilities at the
end of the reporting period are as follows:

Foreign currency sensitivity analysis

Considering the countries and economic environment in which the Company operates, its operations are subject to
risks arising from fluctuations in exchange rates in those countries. The risks primarily relate to fluctuations in US
Dollar, Great Britain Pound and Euro against the functional currency of the Company.

C1 strengthening of INR against US Dollar, to which the Company is majorly exposed, would have led to approximately
C62.91 Lakhs profit in the Statement of Profit and Loss (Year ended March 31, 2024 - C75.22 Lakhs profit). A C1
weakening of the INR against US Dollar would have led to an equal but opposite effect.

The sensitivity analysis includes only outstanding foreign currency denominated monetary items.

Derivative financial instruments

The Company holds derivative financial instruments such as foreign currency forward to mitigate the risk of changes
in exchange rate on foreign currency exposure. The counterparty for these contracts is generally a Bank. These
derivative financial instruments are valued based on quoted prices for similar asset and liabilities in active markets or
inputs that is directly or indirectly observable in the marketplace.

Capital management

The Company's capital management objective is to maximise the total shareholder return by optimizing the cost of
capital through flexible capital structure that supports growth. Further, the Company ensures optimal credit risk profile
to maintain/enhance credit rating.

The Company determines that amount of capital on the basis of annual operating plan and long-term strategic plans.
The funding requirements are met through internal accruals and long-term/short-term borrowings. The Company
monitors the capital structure on the basis of Net debt to equity ratio and maturity profile of the overall debt portfolio
of the Company.

For the purpose of Capital management, capital includes equity capital, securities premium and all other reserves. Net
debt includes all long and short-term borrowings as reduced by cash and cash equivalents.

The following table summarises the net debt to equity ratio of the Company:

45. The Company's wholly owned subsidiary, Andhra Paper Foundation, carries out Corporate Social Responsibilities
activities. The same is not considered for the purpose of consolidation during the year ended March 31, 2025, as the
objective of control over this entity is not to obtain economic benefits from its activities. During the year, Andhra Paper
Foundation converted into Andhra Paper Private Limited on November 11, 2024 and the application for strike off has been
filed with Registrar of Companies, Hyderabad on March 28, 2025, and it is in the process of striking off.

46. In the year ended March 31,2017, the Hon'ble High Court for the State of Telangana and the State of Andhra Pradesh
upheld the validity of levy of electricity duty @ 25 paisa per unit by the State Government on consumption of electricity by
captive generating units relating to earlier years. The Company (along with other petitioners) filed a Special Leave Petition
in the Hon'ble Supreme Court, which in the interim, directed the petitioners to pay partial amount without prejudice to the
rights and contentions of the petitioners, pursuant to which the Company had paid C1,502.05 Lakhs under protest in the
year ended March 31,2017. The matter is pending hearing.

In view of the inherent uncertainty in predicting the final outcome of the above litigation, the Management has, on grounds
of prudence and abundant caution, made a provision amounting to C2,357.43 Lakhs during the year ended March 31,
2017 towards the potential liability in the event of an un-favourable verdict in this matter. Additionally, an amount of
C1,571.62 Lakhs has been disclosed as a contingent liability. On the basis of the legal advice obtained, in the opinion of
the Management no further provision would be required in relation to this disputed matter.

47. The Code on Social Security, 2020 ('Code') relating to employee benefits during employment and post-employment
benefits received Presidential assent in September 2020. The Code has been published in the Gazette of India. However,
the date on which the Code will come into effect has not been notified. The Company will assess the impact of the Code
when it comes into effect and will record any related impact in the period the Code becomes effective.

48. As per Section 135 of the Companies Act, 2013 ('Act), a company, meeting the applicability threshold, needs to spend at
least 2% of its average net profit for the immediately preceding three financial years on corporate social responsibility (CSR)
activities. The focus areas of Company's CSR activities are Education, Health & Wellness and Community Engagement.
The CSR activities of the Company are in line with the Schedule VII of the Companies Act, 2013. A CSR committee has
been formed by the company as per the Act.

* The Company has transferred the unspent amount to a separate bank account of C554.06 Lakhs on 29.04.2025 for the year ended March 31,
2025 in compliance with Companies (Corporate Social Responsibility Policy) Amendment Rules, 2021 vide MCA notification dated January 22,
2021.

During the previous year the company has set off the excess CSR amount of C24.71 Lakhs spent in the FY 2022-2023
against CSR obligation of FY 2023-2024.

49. Investments and Loans & Advances:

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 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.

51. Other Statutory Information:

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

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

c) The Company 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 provision of the Income Tax Act, 1961).

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

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

f) The Company does not have any charges or satisfaction which is yet to be registered with ROC beyond the
statutory period.

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

h) The title deeds of all the immovable properties (other than properties where the company is the lessee and the
lease agreements are duly executed in favour of the lessee) to the financial statements, are held in the name of
the company.

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

j) The company has not entered into any scheme of arrangement which has an accounting impact on current or previous
financial year.

k) The Company has not revalued its property, plant and equipment (including right-of-use assets) and intangible assets
during the current year and previous year.

l) The company has utilised the Borrowings for the purpose for which it has obtained as mentioned in the agreement.

52. The Board of Directors approves the financial statements for issue on May 08, 2025.

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

For M S K A & Associates of Andhra Paper Limited

Chartered Accountants CIN: L21010AP1964PLC001008

Firm Registration No.:105047W

S. K. Bangur

Chairman and Non-Executive Director
(DIN: 00053237)

Prakash Chandra Bhutada Saurabh Bangur Mukesh Jain

Partner Managing Director Executive Director

Membership No:404621 (DIN:00236894) (DIN: 09380039)

Rajesh Bothra Bijay Kumar Sanku

Chief Financial Officer Company Secretary

Membership No: 15449

Place: Hyderabad Place: Rajahmundry / Kolkata

Date : May 08, 2025 Date : May 08, 2025