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:

Amendment to Ind AS 1 'Presentation of Financial
Statements'- Classification of Liabilities as current or
non-current and non-current liabilities with covenants:

The amendment includes specific provisions that will
take effect for reporting periods beginning on or after
April 1,2026, retrospectively, as outlined below:

a) Breach of material covenant for long-term loan
arrangement on or before end of reporting
period with effect that liability becomes payable
on demand as on reporting date, then it shall
be classified as current liability, if lender agreed

after reporting period and before approval of
financial statements to not demand payment as
a consequence of breach.

b) Classify as non-current liability, if lender agreed
by end of reporting period to provide grace period
ending at least 12 months after reporting period
within which entity can rectify the breach provided
lender does not demand immediate repayment.

c) Disclose information about the timing of settlement
to understand the impact of the liability on the
financial statements.

The Company does not expect this amendment to have

an impact on its operations or financial statements.

Notes:

(i) The general credit period on sale is 0-30 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, C2,535.32 Lakhs (as at March 31,2025: C2,104.44 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.

(iv) No trade receivables are due from directors or other officers of the Company either severally or jointly with any
other person or firms or private companies in which any director is a partner, a director or a member.

(v) Refer Note 44 for information about the Company's exposure to financial risks, and details of impairment losses
for trade receivables and fair values.

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.

Retained earnings represent the Company's undistributed earnings after taxes.

In respect of the year ended March 31, 2026, the directors in their meeting held on May 14, 2026 have proposed a
dividend of C0.50 per equity share of face value of C2 each. The proposed equity dividend is subject to approval by
the shareholders at the Annual General meeting (AGM) and has not been included as a liability in these financial
statements. The total estimated amount to be paid with respect to dividend is C994.25 Lakhs.

In respect of the year ended March 31, 2025, the directors proposed a final dividend of ?1 per equity share of face
value of C2 each which was approved by the shareholders in the Annual General meeting (AGM) held on August 07,
2025. The total amount of such dividend paid is C1,988.50 Lakhs.

Notes:

(i) Term loan from IDBI bank of C6,824.18 lacs (March 31,2025: C8,922.23 lacs) is secured by way of first pari passu
charge by way of hypothecation on specific moveable plant and machinery procured out of the term loan and is
repayable in 20 equal quarterly instalments starting from August 01,2024 to May 01,2029.

(ii) Term loan from IDBI bank of C2,889.78 lacs (March 31,2025: C3,501.49 lacs) is secured by way of first pari passu
charge by way of hypothecation on specific moveable plant and machinery procured out of the term loan and is
repayable in 18 equal quarterly instalments starting from February 01,2025 to May 01,2029.

(iii) Term loan from IDBI bank of C1,352.77 lacs (March 31,2025: C412.34 lacs) is secured by way of first pari passu
charge by way of hypothecation on specific moveable plant and machinery procured out of the term loan and is
repayable in 17 equal quarterly instalments starting from February 01,2025 to May 01,2029.

(iv) Term loan from State Bank of India of C Nil (March 31, 2025: C4,456.75 lacs) was secured by way of first pari
passu charge by way of hypothecation on specific moveable plant and machinery procured out of the term loan.
The loan has been prepaid fully during the year.

(v) Term loan from Standard Chartered Bank of C Nil (March 31,2025: C2,150.00 lacs) is secured by way of exclusive
charge by way of hypothecation on existing and future moveable property plant and equipments relating to Tissue
Paper Project. The loan has been prepaid fully during the year.

(vi) Term loan from HDFC bank of C10,240.00 lacs (March 31, 2025: C Nil) from a bank is secured by way of first
pari passu charge by way of hypothecation on existing and future moveable property plant and equipments
relating to Tissue Paper Project and is repayable in 14 equal quarterly instalments starting from June 29, 2026
to September 27, 2029.

(vii) Term loan from HDFC bank of C1,072.50 lacs (March 31, 2025: C Nil) from a bank is secured by way of first
pari passu charge by way of hypothecation on moveable property plant and equipments relating to Paper
Machine-RJ3 Project and is repayable in 20 structured quarterly instalments starting from December 29, 2025 to
September 29, 2030.

(viii) Refer Note 41 for fair value measurements and Note 44 for information about the Company's exposure to
financial risks.

17. Current borrowings (Contd.)

Notes:

(i) Buyers Credit from IDBI bank of C Nil (March 31, 2025: C1,438.16 lacs) is secured by means of first pari passu
charge by way of hypothecation on specific moveable plant and machinery procured out of the buyers credit.
The loan has been fully repaid during the year.

(ii) Working capital demand loan availed from Yes Bank during the previous financial year and has been fully repaid
during the Year.

(iii) Suppliers Credit of C Nil (March 31,2025: C3,554.93 lacs) is availed from Standard Chartered Bank and has been
fully repaid during the year.

(iv) Refer Note 41 for fair value measurements and Note 44 for information about the Company's exposure to
financial risks.

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% P.a. 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 C96.13 Lakhs (Previous year: C126.33 Lakhs) to the Provident Fund Trust maintained by
the Company and C681.37 Lakhs (Previous year: C610.88 Lakhs) to Regional Provident Fund Commissioner, which
was recognised as an expense in Statement of Profit and Loss during the year.

Superannuation:

The Company recognized C10.13 Lakhs (Previous year: C11.82 Lakhs) as an expense towards contribution as
superannuation 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.

There was no change in the methods and assumptions used in preparing the sensitivity analysis from prior years.

34. Segment reporting
Operating Segments

The Chairman and Managing Director of the Company has been identified as the Chief Operating Decision Maker
(CODM) who evaluates the Company's performance and allocates resources for manufacture and sale of pulp, paper
and paperboard. Accordingly, manufacturing and sale of pulp, paper and paperboard is considered as the single
operating segment of the Company.

Geographical Information

The Company operates in India and makes certain sales to customers situated outside India. The revenue from
external customers by location of customers is detailed below. All the non-current assets of the Company are situated
within India.

40. Provision for contingencies

The Company carries a general provision for contingencies towards various disputed matters / claims made against the
Company based on the Management's assessment. Also, refer Note 21.

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 31,2026, 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.

Note: 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.

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 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 31,2026, would decrease/increase by C111.90 Lakhs (for the year ended March 31,
2025: decrease/increase by C101.46 Lakhs). This is mainly attributable to the Company's exposure to interest rates
on its variable rate borrowings.

44. Financial Risk Management and Capital Management (Contd.)

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, 2026 and March 31, 2025. 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,
2026 and March 31,2025:

44. Financial Risk Management and Capital Management (Contd.)

D. Financing facilities

The Company has access to financing facilities (Fund and non-fund based) of which C59,771.21 Lakhs (March 31,2025:
C8,237.12 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
C6.00 Lakhs profit in the Statement of Profit and Loss (Year ended March 31, 2025 - C62.91 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 optimising 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.

45. 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.

Note No. 45 (Contd.)

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.

46. New Labour code:

On November 21, 2025, the Government of India notified the four Labour Codes - the Code on Wages, 2019, the
Industrial Relations Code, 2020, the Code on Social Security, 2020, and the Occupational Safety, Health and Working
Conditions Code, 2020 - consolidating 29 existing labour laws. The Ministry of Labour & Employment published draft
Central Rules and FAQs to enable assessment of the financial impact due to changes in regulations. The Company has
considered restructured compensation of its employees with effect from April 1,2026, and assessed the impact of the
changes, consistent with the Labour Codes, draft rules, FAQs. The Company continues to monitor the finalisation of
Central / State Rules and clarifications from the Government on other aspects of the Labour Code and would provide
appropriate accounting effect on the basis of such developments as needed.

47. 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.

48. 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.

50. 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.

51. The previous year's figures have been regrouped / rearranged, wherever necessary.

52. The Board of Directors approves the financial statements for issue on May 14, 2026.