Details of security for loans repayable on demand (secured)

i) Working capital borrowings from banks F2078.25 lakhs (31st March 2025: F1510.67 lakhs) are secured by hypothecation of stocks of raw materials, finished goods, bills receivables, book debts and all other movable assets of the company and further secured by way of second charge on the immovable assets situated at village Banah and at Ahmedgarh (Refer Note 39).

ii) The Company has obtained overdraft facility from Bank against pledge of current investment as stated in Note No 9. The outstanding balance against this facility is F150 lakhs (31st March 2025: FNil) (refer Note 39)

Other discloures w.r.t Borrowings

iii) The Company has used the borrowings from banks and financial institutions for the specific purpose for which it was taken at the balance sheet date.

iv) The company has taken borrowings from banks on the basis of security of current assets. The quarterly returns/statements filed by the company with the banks are in agreement with the books of account.

v) The company has not been declared as wilful defaulter by any bank or financial Institution or other lender.

vi) As at 31st March 2026, the register of charges of the Company as available in records of the Ministry of Corporate Affairs (MCA) includes charges for which the underlying loans have been repaid. The Company is in process of filing the charge satisfaction e-form with MCA, within the timelines, as and when it receives NOCs from the respective charge holders.

38 Contingent liabilities and commitments (to the extent not provided for)

(No cash outflow is expected)

A CONTINGENT LIABILITIES

a) Claims a gainst the Company not acknowledged as debts includes disputed demands pertaining to excise duty, VAT, GST and PSPCL for which appeals amounting to F578.68 Lacs (previous year F391.82 lakhs) are pending with Appellate Authorities/Courts. The Company has been legally advised that the demand raised by the authorities is not sustainable as it is not in accordance with the provisions of respective laws. The management believes that the ultimate outcome of these proceedings will not have any material adverse effect on the Company’s financial position and results of operations. As against this, a sum of F67.12 lakhs (Previous year F67.12 lakhs) is deposited under protest and has been included under Note 7 ’Other non current assets’.

b) Liability on account of outstanding bank guarantees and letter of credit is F2710.45 Lakhs (previous year F2570.62 Lakhs).

c) The Punjab Water Regulation and Development Authority notified Punjab Groundwater Extraction and Conservation Directions, 2023 on January 27’2023 to be effective from February 01’2023. As per the directions the charges for extraction of underground water are proposed to be applicable from date of submission of application under draft guidelines or from date of extraction whichever is later. The Company has filed petition with Honourable Punjab and Haryana High Court against the retrospectively levy of extraction charges under Ad-interim permission without notification in the Official Gazette and implicit consent. The demand for F1799.18 Lakhs (previous year F1799.18 lakhs) against the Company for the period upto January 2023 has not been acknowledged as debt.

d) Pursuant to the assessment for AY 2022-2023, Income tax department has recomputed additional tax of Rs 390.26 Lakhs (31 March 2025 F390.26 lakhs ) on account of Disallowance of expenditure u/s 37 (1) of Income Tax Act, 1961 amounting to Rs 1550.60 Lakhs. The matter is pending at CIT (Appeal) level and based on the assessments by the management, consideration of merits of the case and external legal advice, the Company believes that there is a fair chance of winning the case. Accordingly, no further provisions, if any, are considered necessary to be recorded in these financial statements.

e) The amounts shown above represents the best possible estimates arrived at on the basis of available information. The uncertainties and possible reimbursements are dependent on the outcome of the different legal processes which have been invoked by the Company or the claimants as the case may be and therefore cannot be predicated accurately or relate to the present obligations that arise from past events where it is either not probable that anoutflow of resources will be required to settle or a reliable estimate cannot be made. The Company has been advised that it has strong legal position against such dispute.

The above investments are lien marked against (i) Overdraft facility from Deutsche Bank AG, the outstanding balance against this facility is F150 lakhs (previous year FNil), (ii) Term loan facility from Deutsche Bank AG F759.94 lakhs (previous year F800 Lakhs)

40 “Current investment is an investment that is by its nature readily realisable and is intended to be held for not more than one year from the date on which investment is made”. The investment shown under the Current investments are held for more than one year, which are to be shown as Non-Current Investments but as per decision taken by the management of the company these are intended to be held for sale as and when the company needs funds, therefore shown under the head “Current Investment”.

The assumptions and methodology used in actuarial valuation are consistent with the requirements of Ind AS 19

viii) The estimates of future salary increases, considered in actuarial valuation, take into account inflation, seniority, promotion and other relevant factors, such as supply and demand in the employment market.

ix) The plan typically exposes the Company to actuarial risks such as: investment risk, interest rate risk, longevity risk and salary risk. Investment Risk

The Probability or likelihood of occurrence of losses relative to the expected return on any particular investment.

Interest risk

If the Discount Rate i.e. the yield on the Government Bonds decrease in future, the Actuarial Liability will increase and vice versa. The quantum of increase in valuation liability corresponding to specific decrease in the Discount Rate and vice versa, has been shown in the annexure containing the sensitivity Analysis of Key Actuarial Assumption.

Longevity risk

If the Mortality rate experienced by the staff of a particular company is higher than what is assumed in mortality Table used in the valuation, the valuation liability will increase.

However, it will be very cumbersome to measure the quantum of increase for assumed reduction of Mortality rates as can be done in case of changes in salary Growth Rate and Interest Rate.

Salary risk

If the salary Growth Rate over the future years of services is increased, the Actuarial Liability will increase and vice versa. The quantum of increase in the valuation liability corresponding to specific increase in the salary growth rate and vice versa has been shown in the annexure containing Sensitivity Analysis of Key Actuarial Assumption.

E Performance obligation and remaining performance obligation

The performance obligation is satisfied upon the delivery of Writing and Printing Paper and payment is generally due within 7 days to 30 days after the delivery.

The remaining performance obligation disclosure provides the aggregate amount of the transaction price yet to be recognized as at the end of the reporting period and an explanation as to when the Company expects to recognize these amounts in revenue. There were no remaining performance obligation as at 31st March 2026.

46 Segment Reporting

Based on the guiding principles laid down in Indian Accounting Standards (Ind-AS)-108 "Segment Reporting" the Chairman and Managing Director of the Company is the Chief Operating Decision maker (CODM). The Company's business activity falls within single segment namely manufacturing of “Writing and Printing Paper” Accordingly, the disclosure requirements of IndAS 108 are not applicable.

47 Dividend

The Board of Directors have recommended dividend of F1.50/- per equity share amounting to F207.37 lakhs (previous year 2024-25 : F3.00/- per share and special dividend of F2.00 /- per share amounting to F691.23 lakhs) during their meeting held on 20th May 2026. The dividend, as recommended by the Board of Directors, if approved at the Annual General Meeting, would be paid subject to deduction of tax (TDS) at the prescribed rates as per Income Tax Act,1961 as amended by Finance Act 2020.

48 Corporate Social Responsibility Expenditure

A As required by Section 135 of Companies Act, 2013 and rules therein, a corporate social responsibility committee has been formed by the Company. The Company has spent the following amount during the year towards corporate social responsibility (CSR) for activities listed under schedule VII of the Companies Act, 2013.

54 Financial instruments and Risk management i Capital management

The capital structure of the Company consists of net debt (borrowings offset by cash and bank balances) and total equity of the Company. The Company manages its capital to ensure that the Company will be able to continue as going concern while maximising the return to stakeholders through an optimum mix of debt and equity within the overall capital structure.

The Company’s management reviews its capital structure considering the cost of capital, the risks associated with each class of capital and the need to maintain adequate liquidity to meet its financial obligations when they become due. The Company’s policy is to maintain a strong capital base so as to maintain investor, creditor and market confidence and to sustain future development of the business. Accordingly the management and the Board of Directors periodically review and set prudent limit on overall borrowing limits of the Company.

The carrying value of financial assets and financial liabilities not measured at fair value is reasonable approximate of Fair value. iii. Financial risk management

The principal financial assets of the Company include investments, loans, trade and other receivables, cash and bank balances that the Company derive directly from its operations. The principal financial liabilities of the company, include loans and borrowings, trade and other payables and the main purpose of these financial liabilities is to finance the day to day operations of the company.

The Company is exposed to market risk, credit risk and liquidity risk. The Company’s senior management oversees the management of these risks and that advises on financial risks and the appropriate financial risk governance framework for the Company.

This note explains the risks which the company is exposed to and policies and framework adopted by the company to manage these risks:-

(A) Market risk management

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 of Currency risk, Interest rate risk and other price risk. a.1 Foreign currency risk management

The Company’s functional currency is Indian Rupees (INR). The Company is exposed to fluctuations in foreign currency exchange rates where transaction references more than one currency and/or where assets/liabilities are denominated in a currency other than the functional currency of the Company. The sources of foreign exchange risk for the Company are trade receivables, trade payables for imported materials and capital goods.

The exchange rate between the Indian rupee and foreign currencies has changed substantially in recent years and may fluctuate substantially in the future. Consequently the company is exposed to foreign currency risk and the results of the company may be affected as the rupee appreciates/ depreciates against foreign currencies. Foreign exchange risk arises from the future probable transactions and recognised assets and liabilities denominated in a currency other than company’s functional currency.

The company measures the risk through a forecast of highly probable foreign currency cash flows and manages its foreign currency risk by hedging appropriately. The Company uses foreign exchange forward contracts to mitigate the risk of changes in exchange rates on foreign currency exposures.

b) Interest rate risk management

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 is exposed to interest rate risk on short term and long term floating rate interest bearing liabilities.

As the Company has no significant interest-bearing assets, the income and operating cash flows are substantially independent 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, which are included in interest bearing loans and borrowings in these financial statements. The Company’s fixed rate borrowings are carried at amortised cost. They are therefore not subject to interest rate risk, since neither the carrying amount nor the future cash flows will fluctuate because of a change in market interest rates.

c) Other Price Risk i) Equity Instruments

The company is exposed to price risk arising from equity investments. The company does not actively trade equity investments.

Equity investments are held for strategic as well as trading purposes. Protection principle is given high priority by limiting company's investments top rated money market instruments only.

Equity price risk is related to change in market reference price of investments in equity shares held by the Company. The fair value of quoted investments held by the Company exposes it to equity price risks. ii) Mutual Fund Investments

The Company manages the surplus funds majorly through investments in debt based and equity mutual fund schemes. The price of investment in these mutual fund is Net Asset Value (NAV) declared by the Asset Management Company on daily basis is reflected by the movement in the NAV of invested schemes. The Company is exposed to price risk on such Investment schemes.

Mutual fund investments are susceptible to market price risk, mainly arising from changes in the interest rates or market yields which may impact the return and value of such investments. However, due to the very short tenor of the underlying portfolio in the liquid schemes, these do not hold any significant price risks. c.1 Equity price sensitivity analysis

The Company is exposed to equity price risks arising from equity investments held by the company and classified in the balance sheet at fair value through profit & loss.

Sensitivity

Following is the sensitivity analysis as a result of the changes in fair value of equity investments measured at FVTPL, determined based on the exposure to equity price risks at the end of the reporting period.

If equity prices had been 5% higher/ lower, profit would increase/ (decrease) as follows for: the year ended 31st March 2026 : by F15.51 lakhs the year ended 31st March 2025 : by F18.98 lakhs c.2 Mutual fund price sensitivity analysis

The sensitivity analysis has been determined based on Mutual Fund Investment at the end of the reporting period. If NAV had been 1% higher/lower, the profit for year ended 31st March 2026 would have increased/decreased by F /- 210.98 lakhs (previous year: increase/decrease by F /- 236.38 lakhs) as a result of the changes in fair value of mutual funds.

(B) Credit risk management

Credit risk arises from the possibility that a counter party 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, loans to employees and security deposits). The Company's credit risk in case of all other financial instruments is negligible.

To manage this, the Company periodically assesses the financial reliability of customers, taking into account the financial conditions, current economic trends, and analysis of historical bad debts and ageing of accounts receivable.

The Company considers the probability of default upon initial recognition of assets and whether there has been a significant increase in credit risk on an ongoing basis through each reporting period.

Trade Receivables

(i) An impairment analysis is performed at each reporting date based on the facts and circumstances existing on that date to identify expected losses on account of time value of money and credit risk. For the purposes of this analysis, the receivables are categorised into groups based on types of receivables. Each group is then assessed for impairment using the Expected Credit Loss (ECL) model as per the provisions of Ind AS 109 - Financial instruments. The calculation is based on provision matrix which considers actual historical data adjusted appropriately for the future expectations and probabilities. Receivables from group companies and secured receivables are excluded for the purposes of this analysis since no credit risk is perceived on them. Proportion of expected credit loss provided for across the ageing buckets is summarised below:

The maximum exposure to credit risk at the reporting date is the carrying value of trade receivables as disclosed at Note 10. b. Other Financial Assets

The Company maintains exposure in cash and cash equivalents, time deposits with banks, investments in debt mutual funds. Investment of surplus funds are made only with approved counter parties. The maximum exposure to credit risk at the reporting date is the carrying value of each class of financial assets.

Write off policy

The financial assets are written off in case there is no reasonable expectation of recovering from the financial asset.

(C) Liquidity risk management

The objective of liquidity risk management is to maintain sufficient liquidity to meet financial obligations of the Company as they become due. The Company monitors rolling forecast of its liquidity position on the basis of expected cash flows. The Company’s approach is to ensure that it has sufficient liquidity or borrowing headroom to meet its obligations at all points in time. The Company manages the liquidity risk by maintaining adequate cash reserves, banking facilities and reserve borrowing facilities by continuously monitoring forecast and actual cash flows and by matching the maturity profiles of financial assets and liabilities.

The Company has access to various fund / non-fund based bank financing facilities. The amount of unused borrowing facilities (fund and non-fund based) available for future operating activities and to settle commitments as at 31st March 2026 F2618.85 lakhs (as at 31st March 2025 F3816.28 lakhs).

Exposure to liquidity risk

The below is the detail of contractual maturities of the financial liabilities of the company at the end of each reporting period along with contractual maturity of Financial assets:

There were no transfers between Level 1 and 2 in the period. Sensitivity of Level 3 financial instruments are insignificant.

The fair value of the financial instruments are determined at the amount that would be received to sell an asset in an orderly transaction between market participants. The following methods and assumptions were used to estimate the fair values:

Investments in mutual funds: Fair value is determined by reference to quotes from the financial institutions, i.e. net asset value (NAV) for investments in mutual funds declared by mutual fund house. NAV represents the price at which the issuer will issue further units of mutual fund and the price at which issuer will redeem such units for the investor.

Derivative contracts: The Company has entered into foreign currency contract(s) to manage its exposure to fluctuations in foreign exchange rates. These financial exposures are managed in accordance with the Company’s risk management policies and procedures. Fair value of derivative financial instruments are determined using valuation techniques based on information derived from observable market data, i.e., mark to market values determined by the Authorized Dealers Banks.

55 The company does not have any Benami property, where any proceeding have been initiated or pending against the company for holding any benami property under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988).

56 The company has not advanced or loaned or invested funds (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

a) directly or indirectly lend or invest in other person 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.

57 The company has not received any fund from any person or entity, including foreign entities ( Funding parties ) with the understanding (whether recorded in writing or otherwise) that the company shall

a) directly or indirectly lend or invest in other person 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.

58 There are no transactions which are 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).

59 Loans to Director: There are no loans or advances in the nature of loans that are granted to Promoters, Directors, KMPs and their related parties (as defined under Companies Act, 2013), either severally or jointly with any other person, that are:

a) repayable on demand; or

b) without specifying any terms or period of repayment

60 Compliance with number of layers prescribed under clause (87) of Section 2 of the Act read with Companies (restriction on number of layers) Rules, 2017 is not applicable as there is no subsidiary.

61 The Company uses an accounting software for maintaining its books of account which has a feature of recording audit trail (edit log) facility and the same has operated throughout the year for all relevant transactions recorded in the accounting software. Further, no instance of audit trail feature being tampered with was noted in respect of the accounting software.

64 Figures in bracket indicate deductions.

65 Previous year figures in the financial statements, including the notes thereto, have been reclassified wherever required to confirm to the current year presentation/classification.