2.18 Provisions and contingencies

Provisions are recognised when the Company has a present legal or constructive obligation as a result of past
events, it is probable that an outflow of resources will be required to settle the obligation and the amount can be
reliably estimated. Provisions are not recognised for future operating losses.

Provisions are measured at the present value of management’s best estimate of the expenditure required to
settle the present obligation at the end of the reporting period. The discount rate used to determine the present
value is a pre-tax rate that refects current market assessments of the time value of money and the risks specific
to the liability. The unwinding of the discount is recognised as finance cost.

A disclosure for contingent liabilities is made 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 embodying economic benefits will be required to settle or
a reliable estimate of the amount cannot be made. The Company does not recognize a contingent liability but
discloses its existence in the financial statements.

Contingent asset is not recognised in financial statements since this may result in the recognition of income that
may never be realised. However, when the realisation of income is virtually certain, then the related asset is not
a contingent asset and is recognized.

Provisions, contingent liabilities and contingent assets are reviewed at each Balance Sheet date.

2.19 Earnings per share

(i) Basic earnings per share

Earnings per share is calculated by dividing the net profit or loss before OCI for the year by the weighted
average number of equity shares outstanding during the year. For the purpose of calculating diluted earnings
per share, the net profit or loss before OCI for the period attributable to equity shareholders and the weighted
average number of shares outstanding during the period are adjusted for the effects of all dilutive potential
equity shares.

Ý the profit attributable to owners of the Company

Ý by the weighted average number of equity shares outstanding during the financial year

(ii) Diluted earnings per share

Diluted earnings per share adjusts the figures used in the determination of basic earnings per share to take
into account:

Ý the after income tax effect of interest and other financing costs associated with dilutive potential equity
shares.

2.20 Segment reporting

An operating segment is a component of the Company that engages in business activities from which it may
earn revenues and incur expenses, including revenues and expenses that relate to transactions with any of the
Company’s other components, and for which discrete financial information is available. Operating segments are
reported in a manner consistent with the internal reporting provided to the chief operating decision maker.

The chief operating decision maker is responsible for allocating resources and assessing performance of the
operating segments and has been identified as the Managing Director & CEO of the Company. Refer Note 43 for
segment information presented.

2.21 Standards 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 31^st March, 2025,
MCA has notified Ind AS - 117 Insurance Contracts and amendments to Ind AS 116 - Leases, relating to sale and
leaseback transactions. The Company has reviewed the new pronouncements and based on its evaluation has
determined that it does not have any significant impact in its financial statements.

Note 3: Property, plant and equipment (Contd.)

(II) The Company as a lessor
Operating lease

The Company has leased out certain buildings on operating leases. The lease term is for 1-3 years and thereafter
renewable. There is escalation clause in the lease agreements. The rent is not based on any contingencies.

There are no restrictions imposed by lease arrangements. The leases are cancellable. The Company has
classified these leases as operating leases, because they do not transfer substantially all of the risks and rewards
incidental to the ownership of the assets. Note 4 sets out information about the operating leases of investment
property.

(a) Term loan of Rs. 3,750.00 lacs (31^st March 2024: Rs. 5,250.00 lacs) from a bank is secured by way of first pari-passu
charge on entire fixed assets of Company at Amlai & Brajrajnagar and carries interest @ 9.05 % p.a. (31^st March 2024:
@ 9.05%) and is repayable in 20 equal quarterly instalments starting from 31^st December 2022 up to 14^th September
2027.

(b) Term loan of Rs. 1,750.00 lacs (31^st March 2024: Rs. 2,750.00 lacs) from a bank is secured by way of first pari-passu
charge on all movable and immovable fixed assets (including land and building) of the Company (present and future)
located at Amlai, Madhya Pradesh and Brajrajnagar, Odisha and carries interest @ 8.91% p.a. (31^st March 2024: @
9.41%) and is repayable in 20 equal quarterly instalments starting from 26^th February 2022 up to 26^th November
2026.

(c) Term loan of Rs. 5,250.00 lacs (31^st March 2024: Rs. 6,750.00 lacs) from a bank is secured by way of first pari-passu
charge over the immovable fixed assets and movable fixed assets of the Company situated at Amlai, Madhya Pradesh
(manufacturing unit) and at Brajrajnagar, Odisha and carries interest @ 9.40% p.a.(31^st March 2024: @ 9.15% ) and is
repayable in 20 equal quarterly instalments starting from 19^th October 2023 up to 19^th July 2028.

(d) Term loan of Rs. 4,000.00 lacs (31^st March 2024: Rs. Nil) from a bank is secured by way of first pari-passu charge
over the immovable fixed assets and movable fixed assets of the Company situated at Amlai, Madhya Pradesh
(manufacturing unit) and at Brajrajnagar, Odisha and carries interest @ 9.10% p.a.(31^st March 2024: @ Nil) and is
repayable in 12 structured quarterly instalments starting from 31^st December 2025 to 30^th September 2028.

Note 19: Borrowings (Contd.)

(e) Term loan of Rs. 4,598.20 lacs (31^st March 2024: Rs. Nil) from a bank is secured by way of first pari-passu charge
over the immovable fixed assets and movable fixed assets of the Company situated at Amlai, Madhya Pradesh
(manufacturing unit) and at Brajrajnagar, Odisha and carries interest @ 8.65 % p.a. (31^st March 2024: @ Nil) and is
repayable in 20 equal quarterly instalments starting from 31^st December 2025 to 30^th September 2030.

(f) Cash credit / working capital demand loans Rs. 9,975.82 lacs (31^st March 2024: Rs. 9,104.08 lacs) from banks includes
security against hypothecation of inventories, book debts and other current assets of the Company and second charge
on fixed assets of the Company and are repayable on demand / at the end of the term of WCDL. The above loans carry
interest @ 7.75 % p.a. to 10.60 % p.a. (31^st March 2024: 7.75% p.a. to 10.05% p.a.).

(g) Short term loan of Rs. Nil (31^st March 2024: Rs. 5,000.00 lacs) from other financial institution secured by way of
pledge of certain investments held by the Company, carried interest @ 10.00% p.a. (31^st March 2024: 10.00% p.a.)
and has been repaid on 26^th March 2025.

(h) Short term loan of Rs. Nil (31^st March 2024: Rs. 3,000.00 lacs) from a bank was unsecured, carried interest @ 8.85%
p.a. (31^st March 2024: 8.85% p.a.) and has been repaid on 25^th February 2025.

(i) Short term loan of Rs. 3,000.00 lacs (31^st March 2024: Rs. Nil) from a bank is unsecured carries interest @ 8.97 % to
9.09 % p.a. (31^st March 2024: Nil) repayable on 7^th May 2025 Rs. 2,000.00 lacs and on 28^th June 2025 Rs. 1,000.00
lacs.

(j) Short term loan of Rs. 7,500.00 lacs (31^st March 2024: Rs. Nil) from a bank is unsecured carries interest @ 9% p.a.
(31^st March 2024: Nil) and to be repaid in equal monthly instalment from the end of 9^th month to 12 month from the
date of first disbursement starting from 29^th May 2025 to 27^th March 2026.

(k) Refer note 40 for information about liquidity risk and market risk on borrowings.

The applicable Indian statutory income tax rate for the year ended 31^st March 2025 was 34.944% and for the year
ended 31^st March 2024 was 34.944%.

Taxation Laws (Amendment) Act, 2019 enacted on December 11, 2019 amends the Income Tax Act, 1961 to provide
domestic companies an option for lower tax rates. The Company has not opted for the lower tax rate and continues
to follow old tax rate which were existing prior to the above said amendment in making provision of its tax liability
for the financial year.

The fair value of unquoted equity securities designated as fair value through other comprehensive income is
determined using Level 3 inputs like earnings, earning multiples etc. Significant unobservable inputs comprise long
term growth rates, market conditions of the specific industry etc. However, the changes in the fair values due to
changes in unobservable inputs will not be material to the financial statements.

Note 39: Capital management

The Company’s objectives when managing capital are to safeguard its ability to continue as a going concern, so that it can
continue to provide returns for shareholders and benefits for other stakeholders and maintain an optimal capital structure
to reduce the cost of capital, while protecting and strengthening the balance sheet through the appropriate balance of
debt and equity funding.

The Company manages its capital structure and makes adjustments in light of changes in economic conditions and the
requirements of the financial covenants. In order to maintain or adjust the capital structure, the Company may adjust the
amount of dividends paid to shareholders, return of capital to shareholders, issue new shares or sell assets to reduce debt.

The Company’s policy is to maintain a stable and strong capital structure with a focus on total equity so as to maintain
investors, creditors and market confidence and to sustain future development and growth of its business. The Company
will take appropriate steps in order to maintain, or if necessary adjust, its capital structure. The Company is not subject to
any externally imposed capital requirements. Management monitors the return on capital, as well as the level of dividends
to ordinary shareholders.

The Company’s activities expose it to credit risk, liquidity risk and market risk (i.e. foreign currency risk, interest rate risk
and price risk).

Risk management framework

The Company’s board of directors has overall responsibility for the establishment and oversight of the Company’s risk
management framework. The board of directors has established the risk management committee, which is responsible
for developing and monitoring the Company’s risk management policies. The committee reports regularly to the board of
directors on its activities. The Board of Directors also review these risks and related risk management policy.

The Company’s risk management policies are established to identify and analyse the risks faced by the Company, to set
appropriate risk limits and controls 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. The Company, through its
training and management standards and procedures, aims to maintain a disciplined and constructive control environment
in which all employees understand their roles and obligations.

The audit committee oversees how management monitors compliance with the Company’s risk management policies and
procedures and reviews the adequacy of the risk management framework in relation to the risks faced by the Company.
The audit committee is assisted in its oversight role by internal audit. Internal audit undertakes both regular and ad hoc
reviews of risk management controls and procedures, the results of which are reported to the audit committee.

This note explains the sources of risk which the entity is exposed to and how the entity manages the risk and the impact
of it in the financial statements.

(A) Credit risk

The Company takes on exposure to credit risk, which is the risk that counterparty will default on its contractual
obligations resulting in financial loss to the Company. The maximum exposure to credit risk at the reporting date is
the carrying value of each class of financial assets disclosed in note 38. The Company is exposed to credit risk from
its operating activities (primarily trade receivables).

(i) Trade and other receivables

Customer credit risk is managed by the Company through established policy and procedures and control relating
to customer credit risk management. Trade receivables are non-interest bearing and are generally carrying up to
10 days credit terms. The Company has a detailed review mechanism of overdue customer receivables at various
levels within organisation to ensure proper attention and focus for realisation. Trade receivables are consisting
of a large number of customers. Where credit risk is high, domestic trade receivables are backed by security
deposits. Export receivables are backed by letters of credit.

(ii) Other financial assets and deposits

Credit risk from balances with banks, deposits, loan to employees, other financial assets etc is managed by
the Company’s finance department. Investments of surplus funds are made only with approved counterparties
in accordance with the Company’s policy. None of the Company’s cash equivalents with banks, deposits,
investments and other receivables were past due or impaired as at 31^st March 2025 and 31^st March 2024 (except
as mentioned below).

The Company’s historical experience of collecting receivables and the level of default indicate that credit risk
is low and generally uniform across markets. All overdue customer balances are evaluated taking into account
the age of the dues, specific credit circumstances, the track record of the counterparty etc. The Company uses
judgement in making these assumptions based on the Company’s past history, existing market condition as well
as forward looking estimates at the end of each reporting period. The impairment provision as disclosed above
are based on assumptions about risk of default and expected loss rates. Loss allowances and impairment is
recognised, where considered appropriate by responsible management. Expected credit loss measured on loan
to employees and other financial assets is not significant.

(B) Liquidity risk

Liquidity risk is the risk that an entity will encounter difficulty in meeting obligations associated with financial liabilities
that are settled by delivering cash or another financial asset. The Company’s approach in managing liquidity is to
ensure that it will have sufficient funds to meet its liabilities when due without incurring unacceptable losses. In doing
this, management considers both normal and stressed conditions.

Management monitors rolling forecasts of the Company’s liquidity position and cash and cash equivalents on the
basis of expected cash flows. This is generally performed in accordance with practice and limits set by the Company.

Maturities of financial liabilities

The tables below analyse the Company’s financial liabilities into relevant maturity groupings based on their contractual
maturities.

The following table shows the maturity analysis of the Company’s financial liabilities based on contractually agreed
undiscounted cash flows along with its carrying value as at the Balance Sheet date.

*gross of debt origination cost

The maturity analysis of the Company’s lease liabilities based on contractually agreed undiscounted cash flows is
given in Note 26.

(C) 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 risk comprises three types of risk: currency risk, interest risk and other price risk, such
as commodity price risk and securities price risk. Financial instruments affected by market risk include borrowings,
investments, trade payables, trade receivables, etc.

(i) Foreign currency risk

The Company deals with foreign trade payables , trade receivables etc. and is therefore exposed to foreign
exchange risk associated with exchange rate movement.

Foreign currency risk is the risk that the fair value or future cash flows of an exposure will fluctuate because of
changes in foreign exchange rates. The Company’s exposure to the risk of changes in foreign exchange rates
relates primarily to the Company’s operating activities. Such foreign currency exposures are not hedged by the
Company. Foreign currency exchange rate exposure is partly balanced by purchasing of goods, commodities
and services in the respective currencies. The Company has a treasury department which monitors the foreign
exchange fluctuations on the continuous basis and advises the management of any material adverse effect on
the Company.

(ii) 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 debt obligations with floating interest rates.

The Company’s main interest rate risk arises from borrowings with variable rates, which expose the Company to
cash flow interest rate risk. During 31^st March 2025 and 31^st March 2024, the Company’s borrowings at variable
rate were mainly denominated in Rupees.

The Company’s fixed rate borrowings and deposits with banks are carried at amortised cost. They are therefore
not subject to interest rate risk as defined in Ind AS 107, since neither the carrying amount nor the future cash
flows will fluctuate because of a change in market interest rates.

(iii) Securities price risk

Securities price risk is the risk that the fair value of a financial instrument will fluctuate due to changes in market
prices. The Company’s exposure to securities price risk arises from investments in equity instruments held by the
Company and classified in the balance sheet at fair value through other comprehensive income. To manage its
price risk arising from investments in equity securities, the Company does regular monitoring of security prices.

Sensitivity

The table below summarises the impact of increase/decrease of the share prices on the Company’s investment in
quoted equity, with all other variables held constant.

Note 45: Employee benefits

(i) Compensated absences

The Company provides for accumulation of leave by certain categories of its employees. These employees can carry
forward a portion of the unutilised leave balances and utilise it in future periods or receive cash in lieu thereof as per
the Company’s policy. The Company records a provision for leave obligations in the period in which the employees
render the services that increases this entitlement.

The total provision recorded by the Company towards this obligation was Rs. 588.10 lacs (31^st March 2024: Rs.
576.96 lacs). The amount of the provision is presented as current, since the Company does not have an unconditional
right to defer settlement for any of these obligations.

(ii) Post-employment defined benefit plan
Gratuity

The Company provides for gratuity, a defined benefit retirement plan covering eligible employees. Every employee is
entitled to a benefit equivalent to fifteen days salary last drawn for each completed year of service on terms not less
favourable than the provisions of the Payment of Gratuity Act, 1972. The same is payable at the time of separation
from the Company or retirement, whichever is earlier. The benefits vest after five years of continuous service.

The gratuity plan is administered and managed by the Trustees who are responsible for the overall governance of
the plan and to act in accordance with the provisions of the trust deeds and rules in the best interests of the plan
participants.

(i) Risk exposure

Through its defined benefit plans the Company is exposed to a number of risks, the most significant of which are
detailed below:

Investment risk:

The defined benefit plans are funded with insurance companies of India. The Company does not have any liberty
to manage the funds provided to insurance companies. The present value of the defined benefit plan liability is
calculated using a discount rate determined by reference to the Government of India bonds. If the return on plan
asset is below this rate, it will create a plan deficit.

Discount rate risk:

The Company is exposed to the risk of fall in discount rate. A fall in discount rate will eventually increase the
ultimate cost of providing the above benefit thereby increasing the value of the liability.

Demographic risk:

In the valuation of the liability, certain demographic (mortality and attrition rates) assumptions are made. The
Company is exposed to this risk to the extent of actual experience eventually being worse compared to the
assumptions thereby causing an increase in the benefit cost.

Salary growth risk

The present value of the defined benefit plan liability is calculated by reference to the future salaries of plan
participants. An increase in the salary of the plan participants will increase the plan liability.

Note 45: Employee benefits (Contd.)

(iv) Provident fund

(a) Provident fund for certain eligible employees is managed by the Company through the “Birla Industries Provident
Fund”, in line with the Provident Fund and Miscellaneous Provisions Act, 1952. The plan guarantees interest at
the rate notified by the Provident Fund Authorities. The contribution by the employer and employee together with
the interest accumulated thereon are payable to employees at the time of their separation from the Company or
retirement, whichever is earlier. The benefits vest immediately on rendering of the services by the employee.

The Company has an obligation to fund any shortfall on the yield of the trust’s investments over the administered
interest rates on an annual basis. Actual return earned by the Company has been higher in the past years. The
actuary has provided a valuation for provident fund liabilities on the basis of guidance issued by Actuarial Society
of India and there is no shortfall as at year-end. Return on plan asset and discount rate, as considered by the
actuary, were 8.15 % (31^st March 2024: 8.15%) and 6.60 % (31^st March 2024: 7.00%) respectively.

The Company contributed Rs. 341.21 lacs and Rs. 574.33 lacs during the year ended 31^st March 2025 and 31^st
March 2024 respectively to the above Provident Fund.

(*) Based on discussions with the solicitors/ favourable decisions in similar cases/legal opinions taken by the Company, the Company
has reviewed all its pending litigations and proceedings and has adequately provided for where provisions are required and
disclosed as contingent liabilities where applicable, in its financial statements. The Company does not expect the outcome of these
proceedings to have a materially adverse effect on its financial statements. The company does not expect the impact, if any, to be
material.

b) Outstanding claims from employees not acknowledged as debts, including Bonus , ,,

Amount unascertainable

claims under adjudication and wages for suspension period at Brajrajnagar Unit.

c) In October 1963, the paper division of the Company had applied to the Public Work Department (Irrigation) of the
Madhya Pradesh State Government for drawing water without any charge from Sone River up to 1165 Million Cubic
Feet (MCF) with the provision for increase up to 2500 MCF on full development of paper mill, the permission for which
was granted by the State Government. In August 2000, the Madhya Pradesh State Government issued a notification
and decided to levy charges on water consumption from river resources for industrial purposes with retrospective
effect from June, 1998, the constitutional validity of which was challenged by the Company by way of a writ petition
in the High Court of Madhya Pradesh. During the pendency of the said writ petition, the Water Resource Department
(WRD) of the State Government started raising the bill for consumption of water on the basis of assumption of total
quantum of water allowed to be drawn by the Company at 2500 MCF whereas, as per the Company, the quantum
of water allowed to be drawn was 1165 MCF and the Company had never drawn the water even up to the initial
quantity of 1165 MCF since it had not attained full development of the paper mill. One of the major reasons for not
being able to achieve full development was frequent and perennial shortage of water. Based on an interim order
passed by the Madhya Pradesh High Court in the aforesaid writ petition, the Company started paying water charges
based on actual consumption of water (less than 1165 MCF), while the WRD of the State Government continued to
raise bills on the basis of assumed consumption of 2500 MCF plus interest and penalty thereon. In January 2009,
the High Court of Madhya Pradesh upheld the constitutional validity of August 2000 notification. After the aforesaid
judgement, the Company paid Rs 908.47 lacs being the difference amount between the assumed quantity of 1165
MCF and the actual consumption, while the WRD of the State Government continued to raise the bills on the basis
of assumed quantity of water consumption of 2500 MCF till April 2009, when the Company entered into a new
agreement with the WRD of the State Government for water consumption of only 440 MCF effective from May 2009.
The total balance demand for the aforesaid period amounts to Rs 2,42,772.67 lacs (31^st March 2024: Rs 2,14,759.86
lacs) [including interest and penalty of Rs 2,41,359.12 lacs (31^st March 2024: Rs 2,13,346.31 lacs)] as at 31^st March
2025, for which no provision has been made in the books. The WRD of the State Government issued a notice for
recovery of aforesaid demand in February 2015, against which the Company filed a writ petition in the Madhya
Pradesh High Court and obtained an interim stay on the recovery. Also, Madhya Pradesh High Court has set aside
demand for penal interest in a similar case for another Company.

On 11^th July, 2020, the WRD has given a letter asking for consent on their offer of one-time settlement at Rs 7,915
lacs and withdrawal of Writ petition from the High Court for which the Company has not given any consent. The
Company has been legally advised that it has a fit case for quashing the present demand.

Note 48: Contingent liabilities (Contd.)

d) (i) The Company’s Paper plant and Caustic Soda plant at Amlai were having individual factory license till 2011.

The Company had applied for common factory license for both the plants enabling to supply Power to Caustic
Soda plant from Paper plant. Simultaneously, it had filed a petition with Madhya Pradesh Electricity Regulatory
Commission (MPERC) for direction on the action if common factory license was granted. On 11^th May, 2012
the MPERC has directed Company to keep any one connection and surrender the other one. Accordingly, the
Company had surrendered its Paper plant connection keeping the Caustic Soda plant connection. However, the
Madhya Pradesh Poorv Khestra Vidyut Vitran Company Limited (MPPKVVCL) has interpreted the order otherwise
and had considered the connection which was retained by Company as unauthorized one. They had issued final
order dated 16-06-2012 under Section 126 (3) of Electricity Act 2003 levying Rs 1,287 lacs as electricity charges
from 17-04-2012 (Date of issuance of Common Factory license) applying penal rate. The Company had filed
an application with MPERC for clarification on direction dated 11^th May 2012. The MPERC vide its order dated
04-08-2012 held that it has given option to the Company to keep any one of the two connection surrendering the
second one. They had written in their Order that the order of the MPERC dated 11-05-2012 has been completely
mis construed by the MPPKVVCL and by a convoluted logic raised claim of unauthorized use of electricity. They
had directed respondent to regularize the connection per Company’s application and submit compliance within
a month. The MPPKVVCL has signed a supplementary HT agreement dated 09-11-2012 effective from 17-04¬
2012 regularizing the connections as per direction of the Commission. However,the Company has filed an appeal
with Appellate Authority District Shahdol for quashing the order dated 16-06-2012 of MPPKVVCL citing (i)
Clarification order of MPERC dated 04-08-2012 and (ii) subsequently regularization of connection by MPPKVVCL
by signing supplementary HT Agreement.

(ii) Similarly, on 21-12-2011, a vigilance team of MPPKVVCL visited its Paper plant at Amlai for inspection of the
usages of Power supplied by them. During their visit, they had observed that Company was erecting a captive
Power plant and operating from time to time water pumps for drawing water from river Sone for its factory use.
They had considered these uses as unauthorized load of 850 KvA from Power supplied by MPPKVVCL and
issued a final order dated 21-08-2012 assessing a demand of Rs 155 lacs. The Company had filed an appeal
against this order with the Appellate Authority District Shahdol for quashing the order citing that (i) it is used for
production of Paper for which connection was granted, (ii) that the power used for the alleged activity is from its
own power generating plant.

However, the Appellate authority has decided both the cases against the Company vide its orders dated 29-11¬
2019 and the Company has received demand letter No AA/SS/06/HT/1368 dated 09-12-2019 demanding Rs.
2,172 lacs. against order in case No 02/12-13 and Rs 235 lacs against order in case No 03/12-13 for unauthorized
use of power making total demand of Rs 2,407 lacs.

The Company has filed an appeal in MP High Court against both the orders vide WP No 28342/ 2019 and WP
No 28354 / 2019 and requested for relief against the demand. The Hon’ble MP High Court vide its order dated
21.01.2020 had passed an interim order in favour of the Company thereby restraining the respondents from
taking any further coercive action against the Company. Matters are still at the stage of completion of pleadings
because the respondents have not yet submitted any replies or affidavits in the case. Further, the Company has
been legally advised by its lawyer that these cases are fit cases for quashing the present demand, therefore, has
not provided any liability in its books of accounts.

e) The Company has received orders for resumption of certain leasehold land. The same was challenged by the Company
vide a writ petition made in the High Court of Orissa, Cuttack for which it has received stay order / order for no coercive
action shall be taken against the Company. Based on legal advice, the Company does not expect the outcome of these
proceedings to have a material effect on its financial statements.

f) In respect of above contingent liabilities, it is not practicable for the Company to estimate the timings of cash outflows,
if any, pending resolution of the respective proceedings. The Company does not expect any reimbursements in respect
of above.

Note 51:

The Company has not made any investments during the year. The Company did not stood guarantee, or provided security
to any company / Firm / Limited Liability Partnership/ Other Party. The Company has not granted secured/ unsecured
loans/advances in nature of loans to any Company / Firm / Limited Liability Partnership / Other Party during the year other
than loan to employees.

The aggregate amount during the year, and balance outstanding at the balance sheet date with respect to such loans to
employee is as per the table given below:

Expense arising from share based payment transactions

Total expenses / (reversal of expenses) arising from share-based payment transactions recognised in Statement of Profit
and Loss as part of employee benefit expenses is (Rs. 5.68) lacs. (31^st March 2024: Rs.28.54 lacs) Refer Note 32.

Note 53:

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, whether recorded in writing or otherwise, 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 funding party (“Ultimate Beneficiaries”) or provide any guarantee,
security or the like on behalf of the Ultimate Beneficiaries.

As per our report of even date.

For B S R & Co. LLP For and on behalf of the Board of Directors of

Chartered Accountants Orient Paper & Industries Limited

Firm Registration Number: 101248W/W-100022 CIN No. L210UOR1936PLC000117

Jayanta Mukhopadhyay C. K. Birla Anant Agarwal

Partner Chairman Managing Director & CEO

Membership No.: 055757 (DIN 00118473) (DIN 02640025)

Place : London Place : Kolkata

Amit Poddar R. P. Dutta

Chief Financial Officer Company Secretary

(ACA 060247) (ACS 14337)

Place: Kolkata Place : Kolkata Place : Kolkata

Date: 22 May 2025 Date: 22 May 2025