2.20 Provisions and contingencies

A provision is recognised when the Company has a present obligation as a result of past events and it is probable that
an outflow of resources will be required to settle the obligation, in respect of which a reliable estimate of the amount
can be made. Provisions are determined based on best estimate required to settle the obligation at the balance sheet
date. 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 the money is material).

The increase in the provisions due to passage of time is recognised as interest expense.

Provisions are reviewed at each balance sheet date and adjusted to reflect the current best estimate. If it is no longer
probable that the outflow of resources would be required to settle the obligation, the provision is reversed.

Contingent liabilities are disclosed when there is a possible obligation arising from past events, the existence of which
will be confirmed only by the occurrence or non-occurrence of one or more uncertain future events not wholly within
the control of the Company or a present obligation that arises from past events where it is either not probable that an
outflow of resources will be required to settle or a reliable estimate of the amount cannot be made.

Contingent assets are not disclosed in the Financial Statements unless an inflow of economic benefits is probable.

2.21 Dividend

Final dividend on shares is recorded as a liability on the date of approval by the shareholders and interim dividends are
recorded as a liability on the date of declaration by the Company's Board of Directors.

2.22. Earnings per Share (EPS)

Basic earnings per equity share is computed by dividing the net profit attributable to the equity holders of the Company
by the weighted average number of equity shares outstanding during the financial year.

Diluted earnings per equity share is computed by dividing the net profit attributable to the equity holders of the
Company by the weighted average number of equity shares considered for deriving basic earnings per equity share
and also the weighted average number of equity shares that could have been issued upon conversion of all dilutive
potential equity shares. The dilutive potential equity shares are adjusted for the proceeds receivable had the equity
shares been actually issued at fair value (i.e. the average market value of the outstanding equity shares). Dilutive
potential equity shares are deemed converted as of the beginning of the period, unless issued at a later date. Dilutive
potential equity shares are determined independently for each period presented.

The number of equity shares and potentially dilutive equity shares are adjusted retrospectively for all periods
presented for any share splits and bonus shares issues including for changes effected prior to the approval of the
financial statements by the Board of Directors.

3. Application of new and amended standards

(A) Amendments to existing Standards (w.e.f. April 01, 2024)

The Ministry of Corporate Affairs vide notification dated September 9, 2024 and September 28, 2024 notified the
Companies (Indian Accounting Standards) Second Amendment Rules, 2024 and Companies (Indian Accounting
Standards) Third Amendment Rules, 2024, respectively, which amended/ notified certain accounting standards (see
below), and are effective for annual reporting periods beginning on or after April 1,2024: -

Insurance contracts - Ind AS 117 and - Lease Liability in Sale and Leaseback — Amendments to Ind AS 116 These
amendments did not have any material impact on the amounts recognised in prior periods and are not expected to
significantly affect the current or future periods.

(B) Standards notified but not yet effective

On May 9, 2025, MCA notifies the amendments to Ind AS 21 - Effects of Changes in Foreign Exchange Rates. These
amendments aim to provide clearer guidance on assessing currency exchangeability and estimating exchange rates
when currencies are not readily exchangeable. The amendments are effective for annual periods beginning on or after
April 1,2025. The Company is currently assessing the possible impact of these amendments on its financial statements.

Notes:

(i) We are in receipt of Order u/s 143 (3) r.w.s 154 for A.Y 2020-21 dated 17.11.2023 wherein the Income tax department has
raised a demand of H2,167.71 Lakhs. Out of this figure, a demand of H212.69 Lakhs is rectifiable for which application
u/s 154 is already submitted vide letter dated 05.02.2023. The order u/s 154 is awaited. For Balance demand, we have
preferred an appeal with Hon'ble Commissioner of Income Tax (Appeals). A stay petition u/s 220 (6) is already filed with
the department.

(ii) We are in receipt of Order u/s 143 (3) for A.Y 2021-22 dated 23.02.2024 wherein the Income tax department has raised a
demand of H645.63 Lakhs. We have preferred an appeal with Hon'ble Commissioner of Income Tax (Appeals) contesting
the demand. A stay petition u/s 220 (6) is already filed with the department.

(iii) We are in receipt of Intimation u/s 143 (1) for A.Y 2022-23 wherein the Income tax department has raised a demand of
H128.88 Lakhs. We have directly preferred an appeal with Hon'ble Commissioner of Income Tax (Appeals) contesting the
demand. We are in process of filing stay petition u/s 220(6).

The remuneration paid to key managerial personal excludes gratuity and compensated absences, as the provision is
computed for the Company as a whole and separate figures are not available.

The Company has not granted any Loans or Advances in the nature of loans to promoters, directors, KMPs and the related
parties (as defined under Companies Act, 2013), either severally or jointly with any other person.”

(e) Terms and conditions of transactions with related parties

The transactions with related parties are made on terms equivalent to those that prevail in arm's length transactions.
Outstanding balances at the year-end are unsecured and interest bearing and settlement occurs in cash. There have
been no financials guarantees provided to a Related Party. For the year ended March 31, 2025 and March 31, 2024, the
Company has not recorded any impairment of receivables relating to amount owed by related parties. This assessment
is undertaken each financial year through examining the financial position of the related party and market in which the
related party operates.

Note 41: Employee benefits plan

As per Ind AS 19 "Employee Benefits”, the disclosures of Employee benefits as defined in the Accounting Standard are given
below :

a) Other long-term benefits - Compensated absences

The Company permits encashment of compensated absence accumulated by their employees on retirement,separation
and during the course of service. The liability in respect of the Company, for outstanding balance of leave at the balance
sheet date is determined and provided on the basis of actuarial valuation as at the balance sheet date performed by an
independent actuary.

The Company doesn't maintain any plan assets to fund its obligation towards compensated absences.

b) Defined benefits plans - Gratuity

The Company has a defined benefit gratuity plan. Every employee who has completed five years or more of service gets a
gratuity on departure at 15 days salary (last drawn salary) for each completed year of service. The plan is funded with an
insurance Company in the form of a qualifying insurance policy.

The following tables summarise the components of net employee benefit expense recognised in the Statement of Profit
and Loss and the funded status and amounts recognised in the balance sheet for the respective plans.

Note 42: Segment information

The operations of the Company are limited to one segment viz. Paper and Paper Boards. The products being sold under this
segment are of similar nature and comprises of paper products only.

Operating segments are defined as components of a Company for which discrete financial information is available that is
evaluated regularly by the Managing Director (Chief Operating Decision Maker) ("CODM"), in deciding how to allocate resources
and assessing performance.

Geographical revenues is allocated based on the location of the customer. Information regarding geographical revenue is
as follows:

Fair value hierarchy

The fair values of the financial assets and liabilities are included at the amount 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.

Level 1: Level 1 hierarchy includes financial instruments measured using quoted prices. This includes listed equity instruments
that have quoted price. The fair value of all equity instruments which are traded in the stock exchanges is valued using the
closing price as at the reporting period.

Note 44: Financial Instruments by category (Contd)

Level 2: The fair value of financial instruments that are not traded in an active market is determined using valuation techniques
which maximise the use of observable market data and rely as little as possible on entity-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.

During the years mentioned above, there have been no transfers amongst the levels of hierarchy. The fair values of unquoted
equity instruments are not significantly different from their carrying value and hence the management has considered their
carrying amount as fair value.

Valuation processes

The finance department of the Company includes a team that performs the valuations of financial assets and liabilities
required for financial reporting purposes, including level 3 fair values. This team reports directly to the chief financial officer
(CFO) and the audit committee (AC). Discussions of valuation processes and results are held between the CFO, AC and the
valuation team at least once every three months, in line with the Company's quarterly reporting periods.

Note 45: Financial risk management objectives and policies

The Company's principal financial liabilities, comprise of borrowings, security deposits, trade and other payables. The main
purpose of these financial liabilities is to finance the Company's operations. The Company's principal financial assets include
investments, loans, trade and other receivables, cash and cah equivalents and other bank balances that are derived directly
from its operations.

The Company's financial risk management is an integral part of how to plan and execute its business strategies. The Company
is exposed to market risk, credit risk and liquidity risk.

The Company's senior management oversees the management of these risks. The senior professionals working to manage
the financial risks and the appropriate financial risk governance framework for the Company are accountable to the Board of
Directors and Audit Committee.

This process provides assurance to Company's senior management that the Company's financial risk-taking activities are
governed by appropriate policies and procedures and that financial risk are identified, measured and managed in accordance
with Company policies and Company risk objective.

The management reviews and agrees policies for managing each of these risks which are summarized as below:

(a) Market Risk

Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes
in market prices.

Market prices comprises three types of risk: currency rate risk, interest rate risk and other price risks, such as equity price
risk and commodity price risk. Financial instruments affected by market risks include borrowings, security deposits,
investments and foreign currency receivables and payables.

(iii) Commodity price risk

The Company is affected by the price volatility of certain commodities. Its operating activities require the ongoing
manufacture of paper and paper boards and therefore require a continuous supply of raw materials i.e. waste paper,
chemicals, coal etc. being the major input used in the manufacturing. Due to the significantly increased volatility
of the price of waste paper and coal the Company had entered into various purchase contracts for these material
for which there is an active market. The Company's management has developed and enacted a risk management
strategy regarding commodity price risk and its mitigation. The Company partly mitigated the risk of price volatility
by entering into the contract for the purchase of these material and further the Company increases prices of its
products as and when appropriate to minimize the impact of increase in raw material prices.

(b) Credit Risk

Credit Risk is the risk that the counter party will not meet its obligation under a financial instrument, leading to a financial
loss. The Company is exposed to credit risk from its operating activities (primarily trade receivables) and from its
financing activities, including deposits with banks, foreign exchange transactions and other financial instruments.

i) Trade receivables

The Company has established a credit policy under which each new customer is analysed individually for
creditworthiness before orders are accepted and the payment and delivery terms and conditions are offered. The
Company's review includes external ratings, if they are available, financial statements, credit agency information,
industry information and business intelligence. Sales limits are established for each customer and reviewed annually.
Any sales exceeding those limits require approval from the appropriate authority as per policy.

Expected credit loss for trade receivables:

The Company estimates its allowance for trade receivable using lifetime expected credit loss. The Company has also
taken advances and trade deposits from its customers which mitigate the credit risk to an extent. The Company
considers the probability of default upon initial recognition of asset and whether there has been a significant
increase in credit risk on an ongoing basis throughout each reporting period. To assess whether there is a significant
increase in credit risk the Company compares the risk of a default occurring on the asset as at the reporting date with
the risk of default as at the date of initial recognition. It considers available reasonable and supportive forwarding¬
looking information.

ii) Financial Instruments and cash deposits

The Company considers factors such as track record, size of the instutition, market reputation, financial strength/
rating and service standards to select the banks with which balances and deposits are maintained. Generally the
balances are maintained with the institutions with which the Company has also availed borrowings.

Note 51 : Compliance with number of layers of companies

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

Note 52 : Compliance with approved Scheme(s) of Arrangements

The Company has no scheme of arrangements which have been approved by the competent Authority in terms of Sec 230 to
237 of the Companies Act, 2013 during the reporting period.

Note 53 : Utilisation of borrowed funds and share premium

A. The Company have 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:

(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 have 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 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 Party (Ultimate Beneficiaries) or

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

Note 54 : Undisclosed income

The Company have not 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)

Note 58 : Details of Benami Property Held

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

Note 59 : Wilful Defaulter

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

Note 60 : Relationship with Struck off Companies

Details of transactions with struck off companies during the year is as below

Note 61 : Audit Trail

The software used by the Company includes an audit trail feature, which is enabled from 1^st April, 2023. The audit trail has
feature of recording each and every transactional changes made in the books of account along with the date when such
changes were made.

Note 62 :Previous year figures have been regrouped/ rearranged, wherever considered necessary to conform to current
year's classification.

Material Accounting Policies and Notes form an integral part of the Financial Statements. 1 to 62

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

For GMJ & CO R N AGARWAL RAUNAK AGARWAL

Chartered Accountants Chairman & Managing Director Executive Director

Firm's Registration No.: 103429W DIN 00176440 DIN 02173330

AMIT MAHESHWARI P K MUNDRA POOJA DAFTARY

Partner Executive Director & CFO Company Secretary

Membership No.: 428706 DIN 10258728

UDIN: 25428706BMIOYS2785
Mumbai, May 28, 2025