11. Provisions. Contingent Liabilities and Contingent Assets:

Provisions are made for present obligations arising as a result of past events and it Is probable that an outflow of resources will be required to settle
⁸ the obligation.

b. Contingent liabilities are not provided for but are disclosed by way of Notes cn Accounts.

_c Contingent assets are neither accounted for nor disclosed by way of Notes on Accounts.

12. Investments:

Long Term investments i e. (Non-Current investments) are stated at cost Provision for diminution in the value of Long Term Investments is made
only if such decline is other than temporary. Current investments are valued at cost

13 Employee Benefits:

Liability in iesoec! of retirement benefits is provided and/or funded and charged to Profit & loss A/c as follows;

s Provision for contribution to defined contribution plan, recognized as expenses during the year as under

b Gratuity is accounted for on actuarial valuation basis.

The management has decided to apply pay-as-you-go method for payment of leave encashment. So. amount of leave encashmont will be
^c accounted in the profit & less A'c in the financial year In which the employee retires and provision will not be made on yearly basis

14. Boo jwlog Costs:

_a Borrowing costs directly attributable to the acquisition or construction cf qualifying assets are capitalized as part of the cost of asset up to the date
when such asset is readv for its intended use,

borrowing costs include interest; amortization of ancillary costs incurred ana exchange differences arising from foreign currency borrowings to the
extent thoy are regarded as an adjustment to the interest cost

Costs In connection with me borrowing of funds to the extent not directly related to the acquisition of qualifying assets are charged to the
^w Statement of Profit and Loss over the tenure of the loan.

15. Leases

Leases where the lessor effectively retains substantially all tho risks and benefits of ownership of the leased item, are classified as operating
leases Operating Lease Payments are recognised as an expense in the Statement of Profit and Loss on a straight line Basis over the lease term

16. Cash Flow Statement

Casn flows are reported using indirect method, wnereby profit before tax is adjusted far the effects of transactions of a non-cash nature and any
deferrals or accruals of past or future casn receipts or payments. The cash flow from regular revenue generating, financing and investing activities
of the Company is segregated Cash and cash equivalents in the balance sheet comprise cash at bank, cash/cheques in hand and FDRs & margin

money with bank.

17. Segment reporting

The Company is engaged only in the Business of Kraft Paper Manufacturing hence has only single reportable business segment In Ihe context of
Accounting Standard 17 on Segment Reporting.

Therefore, no separate segment disclosures are required to be made by the Company.

18. Earnings Por Share (EPS)

Basic and Diluted Earning per Share are computed In accordance with AS 20-Earnlng Per Share. Basic earnings per Equity Share is computed by
dividing net profit after tax by the weighted average number of Equity Shares outstanding during tho year. The Diluted Earning per Share is
computed using the weighted average number of Equity Snares and Diluted Potential Equity Shares outstanding dunng the year.

19. Impairment of Financial and Non-Flnancial Assots

The Company assesses at each reporting date whether there is any objective evidence that a non-flnanciai asset cr a group of non-finanoal assets
are impaired If any such Indication exists, the Company estimates the amount of impairment loss For the purpose of assessing Impairment, the
smallest Identifiable group of assets that generates cash inflows from continuing use that are largely independent of the cash inflows from other
assets or groups of assets is cons>dered as a cash generating unit. If any such indication exists, an estimate of tho recoverable amount of the
individuel asset/cash generating unit is made An impairment loss is calculated as the difference between an asset's carrying amount and
recoverable amount. Losses are recognized In profit or loss and reflected in an allowance account When tho Company considers that there are no
realistic prospects of recovery of tne asset. th8 relevant amounts are written off. If the amount of Impairment loss subsequently decreases and the
decrease can be related objectively to an event occurring after the impairment was recognized, then the previously recognized impairment loss is
reversed through profit or loss.

20. Provisions and Contingent liabilities.

A provision is recognized when the Company has a present obligation a3 a result of past events and it is probable that an outflow of resources will
be required to settie tne obligation, in respect of which reliable estimate can be made. Provisions are not discounted to Its present value and are
determined based on bost estimate required to sortie the obligation at the balance sheet date. These are reviewed at each balance sheet dale and
adjusted to reflect the current best estimates

Contingent Liabilities are not recognized but are disclosed in the notes to accounts when there Is possible obligation or a present obligation that
may, but probaDty will not, require an outflow of resources When there is a possible obligation or a present obligation that the likelihood of outflow
of resources 13 remote. Contingent Assets are not recognized In tho Financial Statements.

21. Sundry Debtors. Sundry Creditors, unsecured loans and advances are subject to confirmation by the respective parties and
reconciliation The impact of tne differences, if any will be given in the year of settlement of accounts.

22 We have broadly reviewed the basis of compiling details & information & we have tost cnecked whenever tne dotails/information
compiled by the assessB

23 Net profit or loss for the period, prior period items and changes In accounting policies

a Net Profit or loss for the period and prior period items are shown separately in tho Statement of Profit & Loss wherever applicable.

Prior period items are income or expenses which arise in the current period as a result of errors or omissions in the preparation of the financial
¹¹ statements of one or more prior periods

Extraordinary items are income or expenses that anse from events or transactions that are dearly distinct from the ordinary activities of tne
^G enterprise snd. therefore, are not expected to recur frequently or regularly.

24 Government Grant

Government grants are recognised whore there is reasonable assurance that the grant will be received and all attached conditions will be complied
with. When the grant relates to an expenso item, it is recognised as income on asystamatic basis over the periods that tho related costs, for which it
is intended to compensate, are expensed When the grant relates to an asset, the government grant related to assets is presented by deducting
the grant in arriving at the carrying amount of the asset.

During the year, grant of INR 7 50 cr. Is recognised In the profit and loss and grant of INR 4.5 cr. which pertains to previous years is recognised as
exceptional item in the profit and loss account under 'Uttar Pradesh Investment and Employment Promotion Policy 2017*. This recognition has
been made as tne condition associated with the grant have been ouly complied with and it is highly likely that the grant will be received from the
government

(a) There is no discrepancies exceeding 10% or more In aggregate for each class of Inventory were notices on physical verification of Inventories
^& as compared to book records

(b) The Company has sanctioned working capital limit in excess of five crore rupees, in aggregate, from banks or financial Institutions on the basis
of security of current assets. The monthly returns or statements filed by the company with banks or financial Institutions were in agreement with the
books of accounts of the company and discrepancies are given as under.

In terms of our report attncned

for Mittal Gool & Associate# for _{and on} behalf of tho Board of Directors

Chartered Accountants Nikita Papers Limited

Firm Registration Number D17577N

CA. Snndeep Kunw Goel Ash ok Kumar Bonsai Ayu^ansal

h- M Managing Director Whore Time Director

Membership No. 059212 Din: 00321238 Din: 00774900

Place. Shamil Sh^JfGupta At&IAerorv/

Data: 15.08 2024 Qpmpliane Officer

PAN:BTAPG6450Q PAltf-AOGPA037OR