(b) Equity Shares:

The Equity Shareholders have:-

Q The right to receive dividend out of balance of net profits remaining after payment of dividend to the preference shareholders. The dividend proposed by Board of Directors is subject to approval of shareholders in the ensuing Annual General Meeting.

Q The Company has only one class of Equity Shares having face value of H10/- each and each shareholder is entitled to one vote per share.

Q In the event of winding up, the equity shareholders will be entitled to receive the remaining balance of assets if any, after preferential payments and to have a share in surplus assets of the Company, proportionate to their individual shareholding in the paid up equity capital of the Company.

(e) The Company has not issued any Bonus Share, shares other than Cash in immediately preceding five years from the Balance Sheet date. During the financial year 2020-21 the company has Buy Back 88,41,241 no's of Equity Shares.

A. NCD of H244.55 Crore are secured by means of first pari passu mortgage/charge on the fixed assets of the company. These Term Loans are/shall be repayable as under:

1 NCDs of H244.55 Crore is repayable in 9 Half yearly installment from September 2024 to July 2028.

B. Term Loans of H195.55 Crore (FIs - H Nil, Banks H199.55 Crore) and NCD of H105.78 Crore is secured by means of first pari passu mortgage/charge on the Property, Plant & Equipment , both present and future, of Unit JKPM of the company. These Term Loans are/shall be repayable as under :-

1 Term Loan of H195.55 Crore is repayable in total 14 quaterly instalments from June 2024 to September 2027.

2 NCDs of H 105.78 Crore is repayable in 11 Half yearly instalments from May 2024 to May 2029.

C. Term Loans of H1123.86 Crore (FIs - H302.83 Crore, Banks H821.03 Crore) is secured by means of first pari passu mortgage/charge on the fixed assets, both present and future, of Unit CPM of the company. These Term Loans are/shall be repayable as under :-

1 Term Loans aggregating to H402.69 Crore are repayable in total 93 equal Quarterly-instalments from June 2024 to March 2032.

2 Term Loans aggregating to H469.13 Crore are repayable in total 26 half-yearly instalments from June 2024 to June 2031.

3 Term Loans of H252.04 Crore are repayable in 30 quarterly instalments from June 2024 to September 2031.

D. Secured Term loans from Financial Institutions and Banks have been reduced by H3.31 Crore (FIs - H1.22 Crore, Banks H2.09 Crore) and NCDs have been reduced by H1.69 Crore due to effective rate of interest.

E. Secured Term loans from Financial Institutions and Banks include H740.99 Crore foreign currency loans. Certain charges are in the process of satisfaction.

F. Lease Liabilities aggregating to H75.28 Crore is repayable in total 629 equal monthly installments from April 2024 to Sep 2041.

# In respect of certain disallowances and additions made by the income tax authorities, appeals are pending before the appellate authorities and adjustments , if any, will be made after the same are finally determined.

NOTE 37: In respect of levy of Octroi demand pertaining to Unit - CPM by Songadh Group Gram Panchayat, the Company has paid H1.25 Crore till 31^st March 1997 under protest and also created a liability of the similar amount. As the matter is still pending in the court of law, the necessary adjustment, if any, would be made on final disposal.

Nature of CSR activities:

Conservation of natural resources, Promotion of Education, Health care, rural development and livelihood interventions, Disaster relief, Digital Literacy amongst others.

Note-Unspent CSR amount of HI.24 crore for the financial year 2023-24, has been transferred to Unspent Corporate Social Responsibility Bank account as per the provisions of Section 135 of the Companies Act, 2013. This amount will be spent in succeeding years on CSR projects/activities of the Company

iii Details of loans given, investments made and guarantee given covered U/s 186(4) of the Companies Act 2013

The company has given loan to Subsidiaries amounting to H33.00 Crore (Previous year H34.50 Crore ) and other parties amounting to H NIL (Previous year H NIL) mentioned above for general business purpose.There are no investment made by the company other than those stated under Note no 4 and 9 of the financial statements

NOTE 40 :

a) The Company had invested H27.10 Crore in a Jointly Controlled Entity (JCE) which has plantation operations in Myanmar through its subsidiary in Singapore. Operations at JCE has been impacted due to economic disruptions and Banking restrictions in Myanmar. Plantation / biological assets are in satisfactory condition. However considering the facts stated above, as a matter of prudence the Company had made provision of H11.10 Crore against its investment in subsidiary of H22.37 Crore.

b) Sales include export incentives of H7.94 Crore (Previous year H10.38 Crore).

c) Interest Income includes H0.59 Crore (Previous year H0.44 Crore) on Deposits with Banks and H53.93 Crore (Previous year H60.69 Crore) on others.

d) Scrap sale of H28.37 Crore (Previous year H25.42 Crore) has been netted off from Consumption of Stores and Spares.

e) The Board of Directors has recommended a final Dividend of H5 /- per share (50%), on the Equity Share Capital for the financial year ended 31^st March, 2024. This is in addition to Interim Dividend of H3.50/- (35%) per Equity Share declared and paid by the Board of Directors during the said financial year.

f) The software used by the company includes an audit trail feature, which is enabled from 1^st April 2023 to 31^st March 2024. The audit trail has feature of recording each and every transactional changes made in the books of account along with the date when such changes were made.

A. LEASES

The Company has adopted Ind AS 116 "Leases" effective 1^st April ,2019 as notified by the Ministry of Corporate Affairs ( MCA) and applied the Standard to its leases using the simplified approach. This has resulted in recognising right - of - use assets and corresponding lease liabilities.

NOTE 45: Miscellaneous expenses include contribution of H0.50 crore made to a political party/electoral bond under section 182 of the Companies Act, 2013.

NOTE 46: The exceptional items during the previous year represents impairment charges H22.56 crore in respect of property,plant and equipment at unit CPM .As required by Ind AS 36, an assessment of impairment of assets was carried out and based on such assessment, the Company has accounted impairment losses H22.56 crore during the previous year.

(iii) Other Information in terms of the amendment in Schedule III of the Companies Act vide notification G.S.R. 207(E) dated 24^th March 2021.

a) The Company does not have any transactions with companies struck off.

b) The Company does not have any benami property, and no proceeding has been initiated or pending against the Company for holding any benami property.

c) The Company have not traded or invested in crypto currency or virtual currency during the financial year.

d) The Company have not advanced or loaned or invested funds to any other person(s) or entity(ies), including foreign entities (Intermediaries) with the understanding that the Intermediary shall:

(i) . Directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of

the company (ultimate beneficiaries) or

(ii) . Provide any Guarantee, Security, or the like to or on behalf of the Ultimate Beneficiaries.

e) The Company have not received any fund from any Person(s) or Entity(ies), including Foreign Entities (Funding Party) with the understanding (whether recorded in writing or otherwise) that the Company shall:

(i) . Directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of

the funding party (ultimate beneficiaries) or

(ii) . Provide any Guarantee, Security, or the like on behalf of the ultimate beneficiaries.

# Working Capital Borrowings are secured by hypothecation of Raw Materials, Finished Goods, Stock-in-Process, Stores & Spares and Book Debts.

g) The Company has no such transaction which is not recorded in the Books of Accounts that has been surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961 (such as, search or survey or any other relevant provisions of the Income Tax Act, 1961.

h) The Company have not been declared willful defaulter by any Banks or any other Financial Institution at any time during the financial year.

NOTE 50 : EMPLOYEE BENEFITS

The Company participates in defined contribution and benefit schemes, the assets of which are held (where funded) in separately

administered funds. For defined contribution schemes the amount charged to the statements of profit or loss is the total of

contributions payable in the year.

a) Defined Contribution Plans:-

Amount recognized as an expense and included in Note 32 Item "Contribution to Provident and Other Funds H0.44 Crore

(Previous year H0.70 Crore) for Superannuation Fund.

b) Other long-term benefits

Amount recognized as an expense and included in Note 32 Item "Salaries, Wages, Allowances etc. H6.73 Crore (Previous year

H4.57 Crore) for long term compensated Absences.

c) Defined benefits plans

(i) Amount recognized as an expense and included in Note 32 & Note 44 "Contribution to Provident and Other Funds" H12.05 Crore (Previous year H11.29 Crore) for Provident and other fund.

The following methods and assumptions were used to estimate the fair values.

A The fair values of derivatives are on MTM as per Bank

B Company has opted to fair value its mutual fund investment through statement of profit & loss

C Company has opted to fair value its quoted investments in equity share through OCI

D As per Para D-15 of Appendix D of Ind AS 101, the first time adopter may chose to measure its investment in subsidiaries, JVs and Associates at cost or at fair value. Company has opted to value its investments in subsidiaries, JVs and Associates at cost.

E Company has adopted effective rate of interest for calculating Interest. This has been calculated as the weighted average of effective interest rates calculated for each loan. In addition processing fees and transaction cost relating to each loan has also been considered for calculating effective interest rate.

* The carrying amounts are considered to be the same as their fair values due to short term nature.

Fair value hierarchy

Level 1 - Quoted prices (unadjusted) in active markets for identical assets or liabilities.

Level 2 - Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices).

Level 3 - Inputs for the assets or liabilities that are not based on observable market data (unobservable inputs).

NOTE 53 : FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES 53.1 Financial risk factors

The Company's operational activities expose to various financial risks i.e. market risk, credit risk and risk of liquidity. The Company realizes that risks are inherent and integral aspect of any business. The primary focus is to foresee the unpredictability of financial markets and seek to minimize potential adverse effects on its financial performance. The primary market risk to the Company is foreign exchange risk & interest rate risk. The Company calculates and compares the alternative sources of funding by including cost of currency cover also. Whenever, the currency cover costs are such as to neutralize the advantage in foreign currency, loans are hedged so as to not to lose advantage. The Company uses derivative financial instruments to reduce foreign exchange risk exposures.

i. Credit Risk

The Company evaluates the customer credentials carefully from trade sources before appointment of any distributor and only financially sound parties are appointed as distributors. The Company secures adequate deposits from its distributor and hence risk of bad debt is limited. The credit outstanding is sought to be limited to the sum of advances/deposits and credit limit determined by the company. The company has stop supply mechanism in place in case outstanding goes beyond agreed limits.

ii. Market risk

Market risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate due to fluctuation in market prices. These comprise three types of risk i.e. currency rate , interest rate and other price related risks. Financial instruments affected by market risk include loans and borrowings, deposits, investments, and derivative financial instruments. Foreign currency risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in foreign exchange rates. 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. Regular interaction with bankers, intermediaries and the market participants help us to mitigate such risk.

a.) Foreign Currency Risk and sensitivity

The primary market risk to the Company is foreign exchange risk. The Company uses derivative financial instruments to reduce foreign exchange risk exposures and follows its risk management policies to mitigate the same. After taking cognisance of the natural hedge, the company takes appropriate hedges to mitigate its risk resulting from fluctuations in foreign currency exchange rate(s).

Foreign Currency Sensitivity

Sensitivity analysis is computed based on the changes in the income and expenses in foreign currency upon conversion into functional currency, due to exchange rate fluctuations between the previous reporting period and the current reporting period.

b. Interest Rate Risk and Sensitivity

The Company's exposure to the risk of changes in market interest rates relates primarily to long term debt. The Company has entered into various interest rate swap contracts, in which it agrees to exchange, at specific intervals, the difference between fixed and variable interest amounts calculated by reference to an agreed upon principal amount. Borrowings at variable rates exposes to cash flow risk. With all other variables held constant, the following table demonstrates composition of fixed and floating rate borrowing of the company and impact of floating rate borrowings on company's profitability.

c. Commodity price risk and sensitivity

The Company is exposed to the movement in price of key raw materials in domestic and international markets. The Company has in place policies to manage exposure to fluctuations in the prices of the key raw materials used in operations. The Company manages fluctuations in raw material price through hedging in the form of advance procurement when the prices are perceived to be low and also enters into advance buying contracts as strategic sourcing initiative in order to keep raw material and prices under check cost of material hedged to the extent possible.

CREDIT RISK

Credit risk refers to the risk of default on its obligation by the counterparty resulting in a financial loss. The maximum exposure to the credit risk at the reporting date is primarily from trade receivables amounting to H167.68 Crore and H163.12 Crore as of March 31,2024 and March 31,2023, respectively. Trade receivables are typically unsecured and are derived from revenue earned from customers primarily located in India. Credit risk has always been managed by the company through credit approvals, establishing credit limits and continuously monitoring the creditworthiness of customers to which the Company grants credit terms in the normal course of business. On account of adoption of Ind AS 109, the company uses expected credit loss model to assess the impairment loss or gain. The Company uses a provision matrix to compute the expected credit loss allowance for trade receivables. The provision matrix takes into account as per the Company's historical experience for customers.

Liquidity risk

Liquidity risk is the risk that the Company will not be able to meet its financial obligations as they become due. The objective of liquidity risk management is to maintain sufficient liquidity and to ensure funds are available for use as per the requirement. The company has an established liquidity risk management framework for managing its short term, medium term and long term funding and liquidity management requirements. The company's exposure to liquidity risk arises primarily from mismatches of the maturities of financial assets and liabilities. The company manages the liquidity risk by maintaining adequate funds in cash and cash equivalents. The company also has adequate credit facilities agreed with the banks to ensure that there is sufficient cash to meet all its normal operating commitments in a timely and cost effective manner.

The Company holds derivative financial instruments such as foreign currency forward contracts to mitigate the risk of changes in exchange rates on foreign currency exposures. The counterparty for these contracts is generally a bank or a financial institution. These derivative financial instruments are valued based on quoted prices for similar assets and liabilities in active markets or inputs that are directly or indirectly observable in the marketplace.

The Board of Directors at its meeting held on 16^th October 2023 had approved acquisition of 100% stake in Manipal Utility Packaging Solutions Private Limited (MUPSPL) by way of entering into a Share Purchase Agreements (SPA). Acquisition was completed on 21^st November 2023 pursuant to which MUPSPL became wholy owned subsidiary of the Company and Subsequently, name of MUPSPL has been changed to JKPL Utility Packaging Solutions Private Limited. The impact of Business Combination has been given in the Consolidated financials of the Company as per IND AS 103.

* Debt consists of Borrowings and Lease Liabilities

^A Earning for Debt Service = Net Profit after taxes Non-cash operating expenses Interest Other non-cash adjustments ^AA Debt service = Interest and Lease payments Principal repayments

# Capital Employed = Tangible Net Worth Total Debt Deferred Tax Liability

Reason for Variance:

(i) Debt Equity Ratio : On account of increase in equity (retained earnings) and decrease in total borrowings during current financial year

(ii) Inventory Turnover Ratio: on account of increase in inventory

(iii) Net Capital Turnover Ratio : on account of increase in working capital

(iv) Return On Investment (Quoted Equity Share) : Impact of Market dynamics.

(v) Current Ratio : Primarily on account of increase in Inventory and decrease in short term borrowings

NOTE 57 : IMPAIRMENT REVIEW

Assets are tested for impairment whenever there are any internal or external indicators of impairment. Impairment test is performed at the level of each Cash Generating Unit ('CGU') or groups of CGUs within the Company at which the assets are monitored for internal management purposes, within an operating segment. The impairment assessment is based on higher of value in use and value from sale calculations.The measurement of the cash generating units' value in use is determined based on financial plans that have been used by management for internal purposes. The planning horizon reflects the assumptions for short to- mid-term market conditions.

Key assumptions used in value-in-use calculations are:-

(i) Operating margins (Earnings before interest and taxes), (ii) Discount Rate, (iii) Growth Rates and (iv) Capital Expenditure

NOTE 58 : INFORMATION RELATED TO CONSOLIDATED FINANCIALS

The Company is listed on stock exchange in India, the Company has prepared consolidated financial as required under IND AS110, Sections 129 of Companies Act, 2013 and listing requirements. The consolidated financial statement is available on Company's web site for public use.

* On 30 September 2019, the Taxation Laws (Amendment) Ordinance 2019 ('the Ordinance') was passed introducing section 115BAA of the Income-tax Act, 1961 which allowed domestic companies to opt for an alternative tax regime from financial year 2019-20 onwards. As per the regime, companies can opt to pay reduced income-tax @22% (plus surcharge and cess) subject to foregoing of certain exemptions. Central Board of Direct taxes vide circular number 29/2019 clarified that companies opting for lower rates of taxes will not be allowed to carry forward minimum alternate tax (MAT) credit and also will not be allowed to offset brought forward losses on account of additional depreciation. During the current year 2023-24, the Company has decided to opt for the aforementioned regime and has provided for its current taxes at lower rates and has made the requisite adjustments in its deferred taxes.

NOTE 60 : SEGMENT INFORMATION Information about primary segment

The Company has one reportable business segment i.e. Paper and Packaging and one geographical reportable segment i.e. Operations mainly within India. The performance is reviewed by the Board of Directors (Chief operating decision makers).

NOTE 61: Previous year figures have been regrouped/ rearranged, wherever considered necessary to conform to current year's classification.

NOTE 62: Notes 1 to 61 are annexed to and form an integral part of financial statements.