Your Directors take pleasure in presenting the 28th Annual Report on the business and operations together with Audited Financial
Statements of your Company for the financial year ended 31st March 2025.

FINANCIAL HIGHLIGHTS

The summarized financial results of the Company for the financial year 2024-25 are given hereunder:

DIVIDEND

Considering the satisfactory business operations coupled with
satisfactory cash flows during the year under review, your
Directors have proposed a dividend of H 3/- (i.e. @ 300%) per share
(previous year H 3/- per share) on the Equity Shares of H 1.00 each
for financial year 2024-25.

Subject to the provisions of Companies Act, 2013, final dividend
on Equity Shares as recommended by the Board of Directors, if
declared at the ensuing Annual General Meeting, will be paid
within 30 days of the declaration of same.

OPERATIONAL PERFORMANCE HIGHLIGHTS

The financial year 2024-25 was a year of strong operational
delivery and strategic execution for Kuantum Papers, reaffirming
its position as one of the most efficient and resilient players in the
Indian paper industry. The Company maintained high levels of
asset utilization, achieved record production volumes, advanced
its sustainability agenda, and delivered one of the industry's
highest EBITDA margins—driven by disciplined cost management,
integrated operations, and a focus on long-term value creation.

This performance is particularly noteworthy in light of the
challenging external environment. The Indian paper industry faced
significant headwinds, including a surge in low-priced imports
that led to an oversupplied market and weakened domestic
realizations. Simultaneously, input costs—especially for domestic
wood—rose to unprecedented levels due to constrained supply
chains and rising competition from other wood-dependent sectors.
These adverse dynamics placed continued pressure on industry¬
wide profitability.

Despite these external pressures, Kuantum delivered a resilient
and industry-leading performance. While Net Sales Realization
(NSR) declined by approximately 13-14%, the Company effectively
contained the drop in EBITDA margin to just 5.5%, recording a
robust EBITDA margin of 22.4% among the highest in the Indian
paper sector. This outcome underscores Kuantum's structural cost
advantages, operational agility, and commitment to efficiency.

The Company achieved its highest-ever finished paper production
of 160,861 MT, surpassing the previous year's 153,058 MT. This
milestone was enabled by strong process stability and full-
capacity operation of all paper machines. Both wheat straw
and hardwood pulp mills operated at optimal levels, ensuring
sustainable and cost-effective pulp production. The installation
of Twin Roll Presses (TRPs) in both pulp lines significantly
improved washing efficiency, reduced chemical consumption, and
enhanced fibre yield—contributing to both cost reduction and
environmental performance.

In a major water sustainability milestone, Kuantum
commenced use of canal-based surface water in May 2024, in
partnership with the Department of Water Resources, Punjab.
This transition has substantially reduced dependence on
groundwater and strengthened the Company's long-term water
management strategy.

The Company also advanced its digital transformation journey
through 'Project Nirmaan', focused on embedding smart
technologies across operations. The deployment of Advanced
Process Control (APC) systems and Industry 4.0 tools has improved
process stability, energy efficiency, and real-time decision¬
making—laying the groundwork for predictive maintenance and
intelligent operations.

On the backward integration front, Kuantum recorded its highest-
ever clonal sapling production of 44.88 lakh, with 40 lakh saplings
distributed across more than 5,000 acres in five northern states.
This initiative supports long-term wood security, promotes agro¬
forestry, and reinforces the Company's commitment to rural
livelihoods and environmental stewardship.

In summary, FY 2024-25 was a year marked by resilience,
innovation, and high performance for Kuantum Papers. The
Company's balanced plant configuration, cost-efficient agro and
wood pulping systems, and sustained investments in automation,
digitalization, water security, and backward integration have
strengthened its leadership position in profitability, sustainability,
and future-ready manufacturing.

PROJECT & FUTURE OUTLOOK

In alignment with its strategic vision for sustainable growth and
operational excellence, Kuantum Papers Ltd. has embarked on a
transformative capital expenditure program of C 73,500 Lakhs.
This comprehensive initiative is focused on modernizing existing
infrastructure, expanding production capacities, integrating
advanced technologies, and strengthening environmental and
digital capabilities to future-proof operations.

The capital investment plan includes the modernization of all four
paper machines, equipping them with state-of-the-art technologies
to enhance productivity, energy efficiency, and product quality.
To diversify its product portfolio and cater to evolving customer
needs, the Company is establishing new converting and offline
coating facilities, enabling entry into high-growth coated, flexible
packaging base, and other specialty paper segments.

Major enhancements in the pulp mill are underway, including the
implementation of a Displacement Digester System (DDS) in the
hardwood line to improve yield, reduce steam consumption, and
stabilize pulp quality. The upgradation of both agro and hardwood
pulp mills, supported by new Twin Roll Presses and improved
chip washing systems, is driving operational efficiency and
sustainability.

On the utilities front, the recovery boiler is being modernized to
meet evolving environmental norms, and a new lime kiln is being
installed to support the chemical recovery cycle and improve
operational stability. Energy efficiency upgrades in the power
plant, including turbine enhancements and optimized fuel systems,
are further reducing the Company's carbon footprint.

In water and effluent management, Kuantum has commissioned a
dedicated canal-based water supply pipeline and Water Treatment
Plant (WTP) equipped with advanced clarifiers and storage tanks
to ensure sustainable water usage. Simultaneously, upgrades to
the Effluent Treatment Plant (ETP) have enhanced wastewater
treatment efficiency and regulatory compliance.

Complementing its physical infrastructure, the Company has
accelerated its digital transformation journey. Under 'Project Neev'
Kuantum is deploying dataPARC, a data visualization and analytics
platform, to drive real-time operational intelligence. Building
on this foundation, 'Project Nirmaan' is integrating Artificial

Intelligence (AI) and Advanced Process Control (APC) technologies
into key manufacturing processes to boost efficiency, reliability,
and predictive maintenance capabilities. These initiatives are being
executed in a phased manner over two years, drawing on the
collective expertise of global partners and in-house teams.

The financial closure for the overall Capex plan has been secured,
with H 53,500 Lakhs sanctioned as project term loan ensuring
timely implementation. All major projects are scheduled for
completion by March 31, 2026.

Looking ahead, Kuantum Papers Ltd. is poised to emerge stronger,
smarter, and more competitive. As the Indian economy continues
its upward trajectory and demand for sustainable, value-added
paper grades accelerates, these initiatives are expected to yield
substantial long-term benefits—including increased production
capacity, improved cost efficiencies, superior product quality,
and enhanced profitability. With execution progressing on all
fronts and a robust foundation now in place, the Company is
well-positioned to deliver enduring value to its stakeholders and
reinforce its leadership in the Indian paper industry.

"Building on this strong operational foundation, the Company has
initiated a forward-looking capital investment program to further
accelerate growth and innovation."

RECOGNITION AND RESEARCH

Awards:

Kuantum Papers Ltd. has been recognized for its exemplary
contributions to environmental stewardship, workplace safety,
and energy efficiency. Some of the notable awards received by the
company in recent years include:

• Best Oral Paper Presentation for the study titled "Role and
Suitability of Bamboo for the Pulp and Paper Industry"

• Best Poster Presentation for the work on "Bamboo to Paper:
Integrated Approach for Environmental Conservation."

• Appreciation Award under the category 'Best Energy Efficient
Designated Consumer' (under the BEE PAT Scheme) by the
Confederation of Indian Industry (CII) for the year 2024.

Publications:

The company's commitment to innovation and sustainability
is also reflected in its recent research contributions to reputed
industry journals:

• "Suitability of Casuarina Clone (CH-1) in Punjab" - Forestry
Research and Engineering: International Journal, July 2024.

• "Evaluating Ecologically Important Bamboo Species for
the Pulp and Paper Industry" - Indian Journal of Soil
Conservation, November 2024.

• "Kuantum's Leap in the Paper Industry: Boosting
Productivity and Quality with AI" - Indian Pulp and
Paper Technical Association: The Official International
Journal, February 2025.

These recognitions and publications underscore Kuantum's
dedication to advancing sustainable practices, driving industry
innovation, and contributing meaningfully to the scientific and
industrial community. The company continues to set benchmarks
in environmental responsibility and operational excellence,
reinforcing its position as a leader in the pulp and paper sector.

INDUSTRYSTATUS

Paper Industry is a significant player in the World Economy. The
four key Paper categories are: Newsprint, Printing and Writing
Papers, Paper Boards for packaging applications, Tissue Papers &
other Specialty Papers. Packaging grades account for over 55% of
consumption, Printing and Writing grades over 35%, Tissue Papers
7-8% and others about 2-3%. Tissue and Packaging grades are
expected to witness higher growth rates, in the future.

The global pulp and paper market size is estimated at USD 379.58
billion in 2024 and is anticipated to reach around USD 551.15
billion by 2034, expanding at a CAGR of 3.80% from 2024 to 2034.

The global book publishing paper market size was estimated at
USD 78.00 billion in 2024 and expected to rise to USD 105.91 billion
by 2033, experiencing a CAGR of 3.4% during the forecast period.

Due to increased adoption of paper-based packaging materials,
the wrapping & packaging segment is set to lead the paper
market. Other significant sectors are sanitary segment backed by
rising disposable income and awareness of personal hygiene in
emerging economies.

The global paper packaging market was valued at USD 410.5
billion in 2024, with expectations to reach USD 596.5 billion by
2034, growing at a CAGR of 3.8%.

The Indian paper industry accounts for about 5% of the world's
production of paper. The estimated annual turnover of the industry
is H 80,000 Crore and its tax contribution to the exchequer is
around H 5,000 Crore. The industry provides direct employment to

0.5 million persons, and indirectly to around 1.5 million.

Most of the paper mills are in existence for a long time and hence
present technologies fall in a wide spectrum ranging from oldest to
the most modern. The mills use a variety of raw material viz. wood,
bamboo, recycled fibre, bagasse, wheat straw and grasses. In terms
of share in total production, approximately 18% are based on wood,
73% on recycled fibre and 9% on agro residues. The geographical
spread of the industry, as well as market, is mainly responsible for
the regional balance of production and consumption.

The paper Industry holds immense potential for growth in India as
the per capita paper consumption in India at around 15-16 kg, which
is way behind the global average of around 57 kg (200 kg for
developed countries). India is the fastest-growing market for paper
globally and it presents an exciting scenario. Paper consumption
is poised for a big leap forward in sync with economic growth. The

futuristic view is that growth in paper consumption would be in
multiples of GDP and hence an increase in consumption by one
kg per capita would lead to an increase in demand of 1 million
tonnes. Healthy demand for Printing and Writing paper and firm
realisations are further expected to drive growth for this segment
of paper manufacturing companies.

India's paper industry, the 15th largest globally, is set to grow
significantly, with a projected market value of USD 19.1 billion by
2033, driven by rising demand.

However, there was a downtrend observed in the paper industry in
FY25 on the back of fall in the realizations despite higher input costs
on the back of increased competition from imports. The domestic
paper market faced an oversupply issue, primarily caused by a
significant rise in net imports, particularly from China and ASEAN
countries, which reduced realisations. Furthermore, the cost of
raw materials (domestic wood) surged to unprecedented levels as
other wood-based industries heightened their demand, coinciding
with a decreased wood supply. This combination of increased
imports and soaring wood prices severely pressured the profit
margins of paper manufacturers.

However, rebound is expected as the adoption of New Education
policy is likely to boost the demand for WPP segment along
with increasing penetration of specialized and conventional
packaging in sectors such as FMCG, healthcare, e-commerce,
pharmaceuticals, etc. Other key demand factors will include a
focus on innovative and attractive packaging and the shift from
plastic to paper-based packaging in the FMCG and food & food
product sectors.

NATIONAL EDUCATION POLICY 2020

The Government announced the new National Education Policy
(the NEP 2020) to focus on providing education that is equitable,
accessible, high-quality and affordable. The New Education Policy
was implemented in academic year 2023-24. With the gradual
implementation of the NEP, rise in the education spend by the
Government, and increased thrust on education through initiatives
such as Sarva Shiksha Abhiyaan/ Education of All, the Printing &
Writing paper demand is expected to increase sharply. The policy
acts as a roadmap to revolutionize schooling and higher education
in India that will support and foster a lifelong learning culture to
maximize the rich talents and resources the country has to offer.
The NEP 2020 is a giant leap in a list of initiatives taken by the
government in achieving Goal 4 (SDG4) of the 2030. The policy
recognises the ever-changing knowledge and employment
landscape in our global ecosystem and focuses on curricular
and pedagogy reform, aligning it with international standards
and making India a vibrant knowledge economy and a nation of
thought leaders. The impending changes in the education policy
and curriculum, alongwith the introduction of textbooks in 22
languages in alliance with NCERT and Ministry of Education are
bound to create a huge demand for Writing and Printing paper to
meet the needs of new Indian education system.

BAN ON SINGLE USE PLASTIC

The ban on the use of plastics in a wide variety of applications
that has been put in place by the Govt of India with effect from
July 01, 2022, has given a big boost to paper production for new
paper products, which will provide the most sustainable and right
replacement of single use plastics. These new varieties of paper
qualities are finding their way into the market, filling up the huge
gap left behind by the plastic ban.

PAPER IMPORT MONITORING SYSTEM (PIMS)

To regulate the import of paper as also to promote the flagship
schemes like "Make in India" and "Atmanirbhar Bharat," the
Government has brought the imports of paper under compulsory
registration from the 1st October 2022. The import policy of major
paper products, such as newsprint, handmade paper, wallpaper
base, duplicating paper, coated paper, uncoated paper, Maplitho
and offset paper, excluding currency paper, bank bonds and cheque
paper and security printing paper, has been amended from 'Free'
to 'Free subject to compulsory registration under Paper Import
Monitoring System' by the Directorate General of Free Trade.

FINANCE

(i) Term Loan for Capex Project

The capex project of H 73,500 Lakhs for mill wide upgradation
& modernization are being funded by mix of debt & internal
accruals. The Company has successfully tied-up loan
amount of H 53,500 Lakhs for execution of the project &
balance H 20,000 Lakhs shall be infused in the form of
internal accruals.

(ii) Working Capital

Banks have sanctioned/renewed the working capital limits
amounting to H 15,655 Lakhs (fund based H 9,000 Lakhs,
non-fund based H 6,655 Lakhs) during the year under review.

(iii) Fixed Deposits

As on 31 March 2025, your Company had Fixed Deposits of
H 2935.65 Lakhs. There were no overdue deposits as on 31
March 2025. The above deposits have been accepted for a
period of 1 year to 3 years as per the Fixed Deposit Schemes duly
approved by the Board of Directors pursuant to the compliance
of the provisions of Sections 73 to 76 of Companies Act, 2013
read with the Companies (Acceptance of Deposit) Rules 2014.

CHANGES IN THE NATURE OF BUSINESS

There is no change in the nature of the business of the Company.

MATERIAL CHANGES BETWEEN THE END OF
FINANCIAL YEAR AND THE DATE OF BOARD REPORT

There have been no material changes and commitments, if any,
affecting the financial position of the Company which have
occurred between the end of the financial year of the Company
to which the financial statements relate and the date of the report.

HOLDING / SUBSIDIARIES / JOINT VENTURES /
ASSOCIATE COMPANIES

Your Company does not have any subsidiary/joint ventures or
associate company within the meaning of the Companies Act,
2013. Kapedome Enterprises Limited is the holding company
having 66.51% equity capital of the Company.

CORPORATE SOCIAL RESPONSIBILITY (CSR)

As per requirement of Section 135 of the Companies Act, 2013 read
with Schedule VII of the said Act and further read with Companies
(Corporate Social Responsibility) Rules, 2014, the Company has
a duly constituted "Corporate Social Responsibility Committee"
consisting of following persons as Members/ Chairman:

1. Mr Pavan Khaitan (Chairman) -Non-Independent,
Executive Director

2. Ms Shireen Sethi -Independent, Non-Executive Director

3. Mr Bhavdeep Sardana -Independent, Non-Executive Director

In pursuance of the Companies Act, 2013 and in alignment with
its vision, the Company through its CSR initiatives will continue to
enhance value creation in the society and in the areas in which
it operates, through its services, conduct and initiatives, so as to
promote sustained growth for the society and community.

During the year under review, the Company has spent an amount
of H 360.36 Lakhs against the CSR obligation of H 359.49 Lakhs.
Details about the CSR policy and initiatives taken by the Company
during the year are available on your Company's website
www.kuantumpapers.com. The Report on CSR activities is given in
Annexure-1 forming part of this Report.

The Company has spent more than the expenditure required to be
spent on CSR Activities under Section 135 of the Companies Act,
2013 read with relevant Rules thereto.

VIGIL MECHANISM / WHISTLE BLOWER

Section 177(9) of the Companies Act, 2013 and Regulation 22
of the SEBI (Listing Obligations and Disclosure Requirements)
Regulations, 2015, Inter alia, provides for a mandatory requirement
for all listed companies to establish a mechanism called the
'Whistle Blower Policy' for Directors and employees to report
concerns of unethical behavior, actual or suspected, fraud or
violation or the Company's code of conduct or ethics policy. In
line with this requirement, the Company has framed a "Whistle

Blower Policy", which is placed on the Company's website i.e.
www.kuantumpapers.com. No complaint has been received during
the year under review.

RISK MANAGEMENT

In line with the new regulatory requirements, the company has
framed a 'Risk Management Policy' to identify and assess the
key risk areas, monitor, and report compliance and effectiveness
of the policy and procedure. A Risk Management Committee has
also been constituted to oversee this process. Pursuant to Section
134(3) of the Act and Regulation 21 of SEBI (LODR) Regulations,
2015, Risk Management Committee was in place, comprising (i) Mr
Pavan Khaitan (Chairman) Non-Independent, Executive Director,
(ii) Ms. Shireen Sethi, Independent Director and (iii) Mr Bhavdeep
Sardana, Independent Director.

During FY 2024-25, two Meetings were held on 11th April, 2024
and 04th November, 2024, wherein, relevant mitigation measures
identified for the Company were reviewed and discussed.

The Company believes that managing risks helps in optimising
returns. A risk management framework has been developed and
implemented by the Company for identification of elements of risk
if any, which in opinion of Board may threaten the existence of the
Company. It aims to identify commodity prices, price fluctuation of
raw material and finished goods, Credit Risks, Inflation, Strategic
Risks, etc. The effectiveness of risk management framework
and system is periodically reviewed by Board of Directors of the
Company. At present, in the opinion of the Board of Directors, there
exists no risks which may threaten the existence of the Company.

The speed and degree of changes in the global economy and the
increasingly complex interplay of factors influencing the business
makes Risk Management an inevitable exercise and to cater to
the same, your Company has identified major focus areas for risk
management to ensure organisational objectives are achieved and
has a robust policy along with well-defined and dynamic structure
and proactive approach to assess, monitor and mitigate risks
associated with the business.

The Risk Management Committee is regularly informed about the
potential risks, their assessment and minimisation procedures. The
Board frames a plan for elimination / minimisation of the risk and
further lays out the steps for implementing and monitoring of the
risk management plan The Company is taking all the appropriate
steps to avoid the risks that arise in the Company.

The Company manages, monitors and reports on the principal
risks and uncertainties that can impact its ability to achieve its
strategic objectives. The Company's risk management systems
and programs comprises of various processes, structures and
guidelines which assist the Company to identify, assess, monitor,
and manages its risks, including any material changes to its risk
profile. To achieve this, the Company has clearly defined the
responsibility and authority of the Company's Management
and the Risk Management Committee to oversee and manage
these Programs. Details of the various risks, which can affect the
Company's business and the management's perception, are more
elaborately given in the 'Management Discussion & Analysis'
attached to this Report.

INTERNAL FINANCIAL CONTROL SYSTEM AND THEIR
ADEQUACY

Effective and strong internal financial control systems are
developed in the Company for all the major processes to ensure
reliability of financial reporting, safeguarding of assets and
economical and efficient use of resources as also the compliance
of laws, regulations, policies and procedures. The Company's
internal control systems are reviewed by an independent firm
of Chartered Accountants. The firm independently evaluates the
adequacy of internal financial controls through periodic reviews
that cover all the functions and processes through reviewing
major transactions. They report directly to the Audit Committee
which ensures complete independence.

The Company has designed and implemented a process driven
framework for Internal Financial Controls. For the year ended on
March 31, 2025, the Board is of the opinion that the Company has
sound Internal Financial Controls commensurate with the size,
scale and complexity of its business operations. During the year,
such controls were tested and were operating effectively.

All the relevant Function Heads are certifying the compliance to all
applicable rules, regulations and laws every quarter to the Board
and are responsible to ensure that internal controls over all the key
business processes are operative. The scope of the Internal Audit
is defined and reviewed every year by the Audit Committee and
inputs, wherever required, are taken from the Statutory Auditors.

Based on the report of Internal Auditors, major audit observations
and corrective actions thereon are presented to the Audit
Committee of the Board.

The Management assessed the effectiveness of the Company's
internal control over financial reporting (as defined in Clause 17
of SEBI Regulations 2015) as of March 31, 2025. The Statutory
Auditors of the Company have audited the financial statements
included in this annual report and have issued an attestation
report on our internal control over financial reporting (as defined
in Section 143 of Companies Act 2013).

CHANGES IN CAPITAL STRUCTURE

There were no changes in the Share Capital during the year
under review. The Company has neither issued any shares with
differential voting rights or granted stock options or issued sweat
equity or purchased its own shares nor the Company has made any
Public/ Rights/ Bonus/Buy back of Equity Shares of the Company.
As on 31st March, 2025, the paid up Equity Share Capital of the
Company stood at H 8,72,63,630 divided into 8,72,63,630 equity
shares of face value of H 1/- each.

KEY MANAGERIAL PERSONNEL

As per the provisions of Section 203 of the Companies Act, 2013,
the Key Managerial Personnel of the Company as on March 31,
2025 were as under:

1. Mr. Pavan Khaitan , Vice Chairman & Managing Director

2. Mr. Vikram Kumar Khaitan, CFO (w.e.f. 05th November, 2024)

3. Mr. Gurinder Singh Makkar, Company Secretary

RELATED PARTY TRANSACTIONS

During the year under review, there were no materially significant
related party transactions made by the Company with Promoters,
Directors, Key Managerial Personnel or other designated persons,
which could have potential conflict with the interest of the Company
at large. All contracts / arrangements transactions entered into by
the Company during the financial year under review with related
parties were at an arm's length basis and in the ordinary course of
business. Necessary disclosures as required under the Accounting
Standards have been made in the Financial Statements.

During the year, the Company has not entered into any contract/
arrangement/transaction with related parties which could be
considered material in accordance with the policy of Company on
materiality of related party transactions (transactions where the
value exceeds H 1,000 Crores or 10% of the annual consolidated
turnover, whichever is lower), or which is required to be reported
in Form AOC-2 in terms of section 134(3)(h) read with Section
188 of the Act and Rule 8(2) of the Companies (Accounts) Rules,
2014, as amended.

Statements giving details of all related party transactions were
placed before the Audit Committee on a quarterly basis. The Audit
Committee as well as all the Directors who were Independent
Directors approved the same. The policy on Related Party
Transactions as approved by the Board can be accessed on the
Company's website at link https://www.kuantumpapers.com/wp-
content/uploads/2024/11/Related-Party-Transaction-Policy.pdf

All the related party transactions are done at arm's length and
pertain to FY 2024-25.

Members may refer Notes to the Financial Statements, which sets
out related party disclosures pursuant to Ind-AS and Schedule V
of Listing Regulations.

SIGNIFICANT AND MATERIAL ORDERS PASSED BY
THE REGULATORS OR COURTS OR TRIBUNALS

There are no significant material orders passed by the Regulators,
Courts or Tribunals, which would impact the going concern status
of the Company and its operations in future.

AUDIT COMMITTEE

As on date, the Audit Committee of the Board consists of Four
Directors, with three of them being Independent Directors. The
Chairman of the Audit Committee is Mr. Vivek Bihani, Independent
Director and the Members are Mr. Bhavdeep Sardana, Independent
Director, Ms. Shireen Sethi, Independent Director and Mr. Pavan
Khaitan, Executive Director. An Independent Director is the
Chairperson of the Committee.

During the year, all the recommendations made by the Audit
Committee were accepted by the Board.

DIVIDEND DISTRIBUTION POLICY

Pursuant to the provision of Regulation 43A of the SEBI (Listing
Obligations and Disclosure Requirement) Regulations, 2015,
the top 1,000 listed entities based on market capitalisation shall
formulate a dividend distribution policy which shall be disclosed

on the website of the Listed entity and a web-link shall also be
provided in annual report.

Though, now the Company is not covered among top 1,000 listed
entities as at 31st December, 2024 and 31st March, 2025, yet in
terms of Regulation 3(2) of SEBI(Listing Obligations and Disclosure
Requirements) Regulations 2015, the duly approved Dividend
Distribution Policy is in place. The Policy can be accessed on the
Company's website at weblink: https://www.kuantumpapers.com/
wp-content/uploads/2024/12/Dividend-Distribution-Policy.pdf.

CHANGE IN THE DIRECTORS AND KEY MANAGERIAL
PERSONNEL

During the financial year 2024-25, Shri Drishinder Singh
Sandhawalia resigned as Non-Executive Director and Mr.
Munishwar Kumar was appointed as Non Executive Director
of the Company.

Further, during the financial year 2024-25, the Shareholders of
the Company, by way of Special Resolution passed on 25th May,
2024, through Postal Ballot, duly approved the Re-appointment
of Mr. Pavan Khaitan as vice Chairman & Managing Director for a
period of three years w.e.f. 01st April, 2024.

During the year 2024-25, Shri Roshan Garg resigned from the post
of Chief Financial Officer (CFO) and Key Managerial Personnel of
the Company w.e.f. close of business hours of 04th November,
2024, on account of personal reasons. Mr. Vikram Kumar Khaitan
was appointed as Chief Financial Officer (CFO), a Key Managerial
Personnel, categorized as Senior Management Personnel, of the
Company w.e.f. 05th November, 2024.

Further, in accordance with the provisions of the Companies Act,
2013 and Articles of Association of the Company, Shri Jagesh
Kumar Khaitan, Director shall retire by rotation at the forthcoming
Annual General Meeting and being eligible, has offered himself for
re-appointment.

DECLARATION BY INDEPENDENT DIRECTORS

The Independent Directors have submitted their disclosures to the
Board that they fulfill all the requirements as stipulated in Section
149(6) of the Companies Act, 2013 and the applicable provisions
of SEBI (Listing Obligations and Disclosure Requirements)
Regulations, 2015 so as to qualify themselves to act as Independent
Director under the provisions of the Companies Act, 2013 and SEBI
(Listing Obligations and Disclosure Requirements) Regulations,
2015 and the relevant rules.

Based on the declarations received from the Independent
Directors, the Board of Directors has confirmed that they meet the
criteria of independence as mentioned under Regulation 16(1)(b)
of the SEBI Listing Regulations and that they are independent of
the management.

In terms of Regulation 25(8) of SEBI Listing Regulations,
Independent Directors have confirmed that they are not aware of
any circumstance or situation which exists or may be reasonably
anticipated that could impair or impact their ability to discharge
their duties. In the opinion of the Board, there has been no change
in the circumstances which may affect their status as Independent
Directors of the Company .

Further, the Board is satisfied of the integrity, expertise, and
experience (including proficiency in terms of Section 150(1) of
the Act and applicable rules thereunder) of all Independent
Directors on the Board.

In terms of Section 150 read with Rule 6 of the Companies
(Appointment and Qualification of Directors) Rules, 2014,
Independent Directors of the Company are registered on the
Independent Director Databank maintained by the Indian Institute
of Corporate Affairs (IICA) and hold valid certificate of registration.

INDUCTIONS & TRAINING OF BOARD MEMBERS

In terms of Regulation 25(7) of the SEBI (Listing Obligations
and Disclosure Requirements) Regulations, 2015, the Company
familiarized the Independent Directors in the following areas:

a. Nature of the industry in which the entity operates;

b. Business model of the entity;

c. Roles, rights, responsibilities of independent directors

Presentations are made to the Board/Committees of the
Board on regular intervals which, inter alia, cover business
strategies & reviews, operations, Industry developments,
management structure, quarterly and year to date financial
results, budgets/business plans, review of Internal Audit and risk
management framework.

Your Company follows a structured familiarisation programme
through various reports and internal policies for all the Directors
with a view to update them on the Company's policies on a
regular basis. Letter of Appointment(s) are issued to Independent
Directors setting out in detail, the terms of appointment, duties,
responsibilities and expected time commitments. Each newly
appointed Director is taken through a formal induction program
including the presentation from the Executive Directors on the
Company's manufacturing, marketing, finance and other important
aspects. All our Directors are aware and also updated, whenever
required, of their role, responsibilities and obligations under the
provisions of the Companies Act, 2013 and Rules made there
under an Agreement/ Regulation 25 of the Listing Regulations,
2015. The details of the Familiarisation Programmes for
Independent Directors are made available on Company's website
at the web link: https://www.kuantumpapers.com/wp-content/
uploads/2025/05/Familiarisation-Programme.pdf

PERFORMANCE EVALUATION OF THE DIRECTORS
AND MEETING OF INDEPENDENT DIRECTORS

Nomination, Remuneration and Evaluation Policy has been
framed by the Nomination and Remuneration Committee. This
Committee has laid down the criteria for performance evaluation
of the individual Directors as well as the Board. The framework
of performance evaluation of the Directors captures the
following points.

(a) Performance of the directors and key attributes of the
Directors that justify his/her extension/continuation on the
Board of the Company.

(b) Participation of the Directors in the Board proceedings and
their effectiveness.

(c) Fulfilment of the independence criteria and their

independence from the management as specified in
SEBI (Listing Obligations and Disclosure Requirements)
Regulations, 2015 (including any statutory modification(s)
or enactment thereof for the time being in force) in case of
Independent Directors.

The Board adopted a formal mechanism for evaluating its
performance as well as of its Committees and individual Directors
including the Chairman of the Board. The exercise was carried out
through a structured evaluation process covering various aspects
of the Board's functioning such as composition of the Board
and Committees, experience and competencies, performance of
specific duties and obligation, governance issues, participation
and effectiveness.

Pursuant to the applicable provisions of the Act and the Listing
Regulations, the Board has carried out an Annual Evaluation
of its own performance, performance of the Directors and the
working of its Committees on the evaluation criteria defined by the
Nomination and Remuneration Committee (NRC) for performance
evaluation process of the Board, its Committees and Directors. The
Board's functioning was evaluated on various aspects, including
inter-alia the structure of the Board, meetings of the Board,
functions of the Board, degree of fulfilment of key responsibilities,
establishment and delineation of responsibilities to various
Committees, effectiveness of Board processes, information and
functioning. The Committees of the Board were assessed on the
degree of fulfilment of key responsibilities, adequacy of Committee
composition and effectiveness of Meetings. The Directors were
evaluated on aspects such as attendance, contribution at Board/
Committee Meetings and guidance/support to the Management
outside Board/ Committee Meetings.

The criteria for evaluation of Board include whether Board
meetings were held in time, all items which were required as
per law or SEBI (LODR) Regulations, 2015 to be placed before
the Board, have been placed, the same have been discussed and
appropriate decisions were taken, adherence to legally prescribed
composition and procedures, timely induction of additional/
women Directors and replacement of Board members/Committee
members, whenever required, whether the Board regularly
reviews the investors grievance redressal mechanism and related
issues, Board facilitates the independent directors to perform
their role effectively etc. The criteria for evaluation of committee
include taking up roles and functions as per its terms of reference,
independence of the committee, policies which are required to
frame and properly monitored its implementation, whether the
committee has sought necessary clarifications, information and
explanations from management, internal and external auditors etc.
Based on such criteria, the evaluation was done in a structured
manner through peer consultation & discussion.

The performance assessment of Non-Independent Directors,
Board as a whole and the Chairman were evaluated in a separate
meeting of Independent Directors. The same was also discussed in
the meetings of NRC and the Board.

Performance evaluation of Independent Directors was done by the
entire Board, excluding the Independent Director being evaluated.

During the year under review, a meeting of Independent Directors
was held on 11th February, 2025. The performance of the Non-

Independent Directors and the Board as a whole vis- a-vis the
performance of the Chairman of the Company was reviewed by
the Independent Directors.

DISCLOSURES ON BOARD EVALUATION:

i. Observations of Board Evaluation carried out for the year:

In conformity with the evaluation policy and laid down
parameters, the overall contribution of each Director was
assessed as satisfactory and appreciable. The suggestions,
participation, involvement and constant efforts of each
director in the light of the business operations and
overall growth and development of the Company was
really significant.

ii. Previous year's observations and actions taken:

There were no observations of the Board with regard to the
previous year. However, it has been the endeavor of the Board
of Directors of the Company to attain the highest level of
transparency, accountability and integrity as well as utmost
applicable legal and ethical standards in the functioning
of the Company with a view to create value that can be
sustained continuously for the benefit of its stakeholders.

iii. Proposed actions envisaged:

The Company proposes to hold more trainings, presentations
and interactions enabling the Directors to uphold highest
standards of integrity & probity and strict adherence of the
Companies Act, SEBI (Listing Obligations and Disclosure
Requirements) Regulations, and other rules and regulations
besides Company's Code of Conduct as also to strive for
constructive, effective and value-added deliberations at the
meetings as also to consistently strive to implement best
corporate governance practices reflecting its strong value
system and ethical business conduct.

SEPARATE MEETING OF INDEPENDENT DIRECTORS

In compliance with Section 149(8) of the Act read along with
Schedule IV of the Act and SEBI (Listing Obligations and Disclosure
Requirements) Regulations, 2015, the Independent Directors
separately met on 11th February, 2025.

The Independent Directors at their separate meeting, reviewed
the performance of the Board, Chairman of the Board and of Non¬
Independent Directors, as required under the Act and the Listing
Agreement. The Independent Directors at their separate meeting
also assessed the quality, quantity and timelines of flow of
information between your Company Management and the Board
of Directors of your Company.

All the Independent Directors were present at the Meeting.

NOMINATION, REMUNERATION AND EVALUATION
POLICY

The Board has on the recommendation of the Nomination and
Remuneration Committee, approved a policy for selection,
appointment, remuneration and evaluation of Directors, Key
Managerial Personnel and Senior Management. Details of the
Nomination and Remuneration Committee are given in the
Corporate Governance Report. The Nomination, Remuneration

and Evaluation Policy as approved by the Board is placed on the
Company's website i.e. www.kuantumpapers.com.

DISCLOSURE OF COMPLAINTS OF SEXUAL
HARRASMENT AND CHILD LABOUR

The Company's Policy on Prevention of Sexual Harassment
at workplace is in line with the requirements of the Sexual
Harassment of Women at Workplace (Prevention, Prohibition and

Redressal) Act, 2013 (Prevention of Sexual Harassment of Women
at Workplace Act) and Rules framed there under.

Internal Complaints Committees have also been set up to redress
complaints received regarding sexual harassment. The Company
is committed to providing a safe and conducive work environment
to all of its employees and associates. The following is a summary
of sexual harassment complaints received and disposed off during
the year 2024-25:

STATEMENT AS TO INTERNAL COMPLAINTS
COMMITTEE

In terms of Companies (Accounts) Amendment Rules, 2018, it is
hereby stated that the Company has complied with provisions
relating to the constitution of Internal Complaints Committee
under the Sexual Harassment of Women at Workplace (Prevention,
Prohibition and Redressal) Act, 2013.

STATEMENT ON COMPLIANCE WITH APPLICABLE
SECRETARIAL STANDARDS

During the year under review, the Company has complied with the
applicable provisions of the Secretarial Standards issued by the
Institute of Company Secretaries of India.

NUMBER OF MEETINGS OF THE BOARD AND AUDIT
COMMITTEE

The Board meets at regular intervals to discuss and decide on
Company's business operations, policies and strategy apart from
other Board businesses.

During the year, 5(Five) Board Meetings and 5 (Five) Audit
Committee Meetings were convened and held. Details of the
number of meetings of Board of Directors and committees thereof
and the attendance of the Directors in such meetings are provided
under the Corporate Governance Report that forms part of
the Annual Report.

The intervening gap between the meetings was within the period
prescribed under the Companies Act, 2013 and the Securities
and Exchange Board of India (Listing Obligation and Disclosure
Requirements) Regulations, 2015 ("Listing Regulations"), as
amended from time to time. Pursuant to the circular relating to the
"enforcement of SEBI Order regarding appointment of directors by
listed companies" dated June 20, 2018, none of the director of the
Company, is debarred from holding the office of director pursuant
to any SEBI order.

MANAGEMENT DISCUSSION AND ANALYSIS REPORT

In terms of Regulation 34 of the SEBI (Listing Obligations and
Disclosure Requirements) Regulations, 2015 ('Listing Regulations'),
Management Discussions and Analysis report ("MD&A Report")
providing a detailed overview of your Company's performance,
industry trends, business and risks involved is provided separately
and forms part of Annual Report.

COMMITTEES OF THE BOARD

The Committees of the Board focus on certain specific areas and
make informed decisions in line with the delegated authority. The
following are the Committees statutorily constituted by the Board
and function according to their respective roles and defined scope:

• Audit Committee

• Nomination & Remuneration Committee

• Stakeholders Relationship Committee

• Corporate Social Responsibility Committee

• Risk Management Committee

Details of composition, terms of reference and number of
meetings held for respective Committees are given in the Report
on Corporate Governance which forms part of the Annual Report.

Apart from above statutory committees, the Board of Directors has
also a non-statutory committee viz. Finance Committee.

PREVENTION OF INSIDER TRADING

The Company has adopted a Code of Conduct for Prevention of
Insider Trading, in accordance with the requirements of Securities
and Exchange Board of India (Prohibition of Insider Trading)
Regulations, 2015, as amended from time to time. The Company
Secretary is the Compliance Officer for monitoring adherence to
the said Regulations. The Code is displayed on the Company's
website at www.kuantumpapers.com.

REPORTING OF FRAUDS

There was no instance of fraud during the year under review, which
required the Statutory Auditors to report to the Audit Committee
and / or to the Board as required under Section 143(12) of the Act
and the rules made thereunder.

DEMATERIALISATION OF SHARES

As on March 31, 2025, 99.31% Equity Shares were in
dematerialised form with National Securities Depository Limited
and Central Depository Services (India) Limited and rest 0.69%
were in physical form.

INSURANCE:

The properties/assets of your Company are adequately insured.

INDIAN ACCOUNTING STANDARDS

The financial statements of your Company are prepared in
accordance with the Indian Accounting Standards ('Ind- AS')
pursuant to the Ministry of Corporate Affairs notification dated
February 16, 2015 notifying the Companies (Indian Accounting
Standards) Rules, 2015.

STATUTORY AUDITORS & AUDITOR'S REPORT

M/s O P Bagla & Co. LLP, Chartered Accountants, (Firm Registration
No. 000018N/N500091), Statutory Auditors of the company were
appointed for a period of five years by the shareholders of the
Company to hold office from the conclusion of the 23rd Annual
General Meeting till the conclusion of 28th Annual General
Meeting. Being eligible as a Firm, for re-appointment as Statutory
Auditors of the Company, they have expressed their consent and
eligibility for being re-appointed for a second term of consecutive
five years w.e.f. the conclusion of ensuing 28th Annual General
Meeting until the conclusion of 33rd Annual General Meeting,
subject to the approval of shareholders at ensuing AGM.

As required under Section 139 of the Companies Act, 2013, the
Company has received a written consent from the Auditors to
their continued appointment and also a certificate from them to
the effect that their existing appointment is in accordance with the
conditions prescribed under the Companies Act, 2013 and rules
made thereunder.

The Auditors report for the financial year 2024-25 does not contain
any qualification, reservation or adverse remark. The Notes on
Accounts referred to in the Annexure to the Statutory Auditor's
Report are self-explanatory and do not call for any comments.

The details relating to fees paid to the Statutory Auditors are given
in the Financial Statements and Corporate Governance Report in
the Annual Report.

APPLICABILITY AND MAINTENANCE OF COST RECORDS

In terms of Companies (Accounts) Amendment Rules, 2018, a
Disclosure is hereby made that maintenance of cost records as
specified by the Central Government under subsection (1) of section
148 of the Companies Act, 2013, is required by the Company and
accordingly such accounts and records are made and maintained.

COST AUDITORS

M/s R.J. Goel & Co., Delhi were appointed as Cost Auditors for
conducting the cost audit of the Company for the year ended 31st
March 2025. The Company's Cost Audit Report for the year ended
31st March 2024 was duly filed during the financial year 2024¬
25 within stipulated period. The Board of Directors has on the
recommendation of Audit Committee, appointed the said firm as
Cost Auditors of the Company for the financial year 2025-26. For
the year 2024-25, the Cost Audit report shall be duly filed within
prescribed time.

SECRETARIAL AUDITORS & REPORTS

M/s S.K. Sikka & Associates, Company Secretaries were appointed
as Secretarial Auditors to conduct Secretarial Audit of the
Company and they have submitted the Secretarial Audit Report for
the year ending 31st March, 2025 which is annexed to this Board's
Report as Annexure-4.

As per amended SEBI (Listing Obligations and Disclosure
Requirements) Regulations, 2015 in addition to the above-
mentioned Secretarial Audit Report, listed company is also
required to obtain an Annual Secretarial Compliance Report
from a practicing Company Secretary w.r.t. the compliances of all
applicable SEBI Regulations, amendments, circulars or guidelines
etc. by the Company. Accordingly, the same has been obtained
from M/s S.K. Sikka & Associates, Company Secretaries and filed
with the concerned Stock Exchanges. The said Secretarial Audit
Report or Report on annual secretarial compliances does not
contain any qualification, observation reservation or adverse
remark made by the Secretarial Auditor.

Further pursuant to SEBI (Listing Obligations and Disclosures
Requirements) Regulations, 2015, read with Securities and
Exchange Board of India (Listing Obligations and Disclosures
Requirements) (Amendment) Regulations, 2018, the Company is
required to obtain a certificate from Practicing Company Secretary
that none of the directors on the Board of the company have
been debarred or disqualified from being appointed or continuing
as directors of companies by the Board/Ministry of Corporate
Affairs or any such statutory authority. The said Certificate has
been obtained from the M/s S.K. Sikka & Associates, Company
Secretaries, which is given at Annexure-7 and forms part of
Board's Report.

Pursuant to Section 204 of the Companies Act, 2013 further read
with amended Regulation 24A of SEBI(Listing Obligations and
Disclosure Requirements) Regulations, 2015 M/s S.K. Sikka &
Associates, Company Secretaries have been appointed as the
Secretarial Auditors to conduct Secretarial Audit of the Company for
a period of five consecutive years w.e.f. the conclusion of ensuing
28th AGM until the conclusion of 33rd AGM to be held in year 2030,
subject to the approval of shareholders at ensuing 28th AGM.

INTERNAL AUDITOR

Internal Audit for the year ended 31st March, 2025 was done by M/s
A. Gandhi & Associates, Chartered Accountants and Internal Audit
Report for every quarter was placed before the Audit Committee.
The internal financial controls were adequate and operating
effectively in the Company.

DIRECTORS AND OFFICERS INSURANCE (D &O)

As per the requirements of Regulation 25 (10) of the SEBI further
read with Regulation 3(2) of Listing Regulations, applicable to the
Company, the Company has taken Directors and Officers Insurance
Policy (D & O) for all of its Directors.

UNCLAIMED SUSPENSE ACCOUNT

Details pertaining to the shares in 'Unclaimed Suspense Account'
in Compliance with the terms of SEBI (LODR) Regulations, 2015
are given in the Report on Corporate Governance annexed
with this report.

RESOLUTION AND MATTERS APPROVED THROUGH
POSTAL BALLOT DURING FINANCIAL YEAR

During the year under review, two Special Resolution were
passed through postal Ballot process on 25th May, 2024, for re¬
appointment of Mr. Pavan Khaitan as vice Chairman & Managing
Director for a period of three years w.e.f. 01st April, 2024 and
on 18th December, 2024 for appointment of Shri Munishwar
Kumar(DIN: 00434341) as Non-Executive Director.

DECLARATION REGARDING CODE OF CONDUCT

Directors, Key Managerial Personnel and Senior Management of
the Company have confirmed compliance with the Code of Conduct
applicable to the Directors and employees of the Company and
the declaration in this regard made by CEO/ Vice Chairman &
Managing Director of the Company is annexed at Annexure-9 and
forms part of this Annual Report. The said code is available at the
Company's website i.e. www.kuantumpapers.com.

DISCLOSURE ABOUT THE RECEIPT OF COMMISSION

Details of Remuneration including Commission received only
from the Company by Managing/Whole Time directors are given
in Corporate Governance Section which forms part of Annual
Report. In terms of Section 197(14) of the Act and rules made there
under, during the year under review, no director has received any
commission from the holding company. The Company is not having
any subsidiary and hence the same is not applicable to the Company.

CORPORATE GOVERNANCE

A Report on Corporate Governance along with a Certificate from
the Practicing Company Secretary regarding compliance of the
conditions of Corporate Governance pursuant to SEBI (Listing
Obligations and Disclosure Requirements) Regulations, 2015 are
annexed at Annexure-5 and Annexure-6 respectively and form
part of the Annual Report.

TRANSFER TO INVESTOR EDUCATION AND
PROTECTION FUND

As required under the provision of the Section 124 & 125 and
other applicable provisions of the Act, dividends that remain
unpaid / Unclaimed for a period of consecutive 7 years, are
required to be transferred to the account administered by the
Central Government viz. Investor Education and Protection Fund

("IEPF"). Further, according to the said Rules, the shares on which
Dividend has not been encashed or claimed by the Members for 7
consecutive years or more shall also be transferred to the demat
account of the IEPF Authority. In terms of the provisions of Investor
Education and Protection Fund (Accounting, Audit, Transfer
and Refund) Rules, 2016 / Investor Education and Protection
Fund (Awareness and Protection of Investors) Rules, 2001, the
abovestated unpaid dividends and shares requiring transfer to
Investor Education and Protection Fund during the year 2024-25,
have been duly transferred.

INDUSTRIAL RELATIONS

The industrial relations remained very cordial and responsive
during the year under review.

EXTRACT OF THE ANNUAL RETURN

Pursuant to the provisions of Section 134(3)(a) and Section 92(3)
of the Act read with Rule 12 of the Companies (Management
and Administration) Rules, 2014, the extract of the Annual
Return of the Company for the Financial Year March 31, 2025 is
uploaded on the website of the Company and can be accessed
at www.kuantumpapers.com under the weblink i.e. https://
www.kuantumpapers.com/wp-content/uploads/2025/05/
MGT-7-2024-25.pdf

TRANSFER TO RESERVES

The Company does not propose to transfer any amount to general
reserves. Capital Redemption Reserve have been created in
accordance with Companies Act, 2013 at the time of redemption of
preference shares by transferring amount equal to nominal value
of preference shares so redeemed from surplus balance of profits.

CAUTIONARY STATEMENT

Certain Statements in this Annual Report may constitute "forward
looking statements". These forward-looking statements are
subject to a number of risks, uncertainties and other factors
which could cause actual results to differ materially from those
suggested by forward looking statements.

CONSERVATION OF ENERGY, TECHNOLOGY
ABSORPTION AND FOREIGN EXCHANGE EARNINGS
& OUTGO

The information relating to conservation of energy, technology
absorption and foreign exchange earnings & outgo as required
under Section 134(3)(m) of the Companies Act, 2013 read with
Rule 8(3) of the Companies (Accounts) Rules, 2014 is given in
Annexure-2 which forms part of this Report.

PERSONNEL

Relationships with the employees remained cordial throughout
the year in the Company. The Directors express their appreciation
for the contribution made by the employees at all levels to the
operations and in establishing operational efficiencies of the
Company during the year under review.

PARTICULARS OF EMPLOYEES

The information required under section 197(12) of the Companies
Act, 2013 read with Rule 5 of the Companies (Appointment &
Remuneration of Managerial Personnel) Rules, 2014 is given in
the statement annexed herewith as Annexure-3 and forms part of
this Report. The information required pursuant to the provisions
of Rule 5(2) & (3) of the Companies (Appointment & Remuneration
of Managerial Personnel) Rules, 2014 requiring particulars of the
employees in receipt of remuneration in excess of H 102 Lakhs
per annum if employed throughout the year and H 8.50 Lakhs per
month if employed for part of the year, is given in the statement
annexed herewith as Annexure-3.

As per the provisions of Section 136 of the Act, the reports and
Financial Statements are being sent to shareholders of the
Company and other stakeholders entitled thereto, excluding
the Statement containing other Particulars of Employees. Any
shareholder interested in obtaining such details may write to the
Company Secretary of the Company.

LISTING OF SECURITIES

The securities (Equity Shares) of the Company are listed at BSE
Limited (BSE) and National Stock Exchange of India Limited (NSE).
The Company has paid the listing fees to the BSE and NSE up to
the financial year 2025-26.

PARTICULARS OF LOANS, GUARANTEES OR
INVESTMENTS UNDER SECTION 186 OF THE
COMPANIES ACT, 2013

There had been no loans, guarantees and investments covered
under Section 186 of the Companies Act, 2013 requiring particulars.
Details of loans from Banks/FIs/ Directors, are provided in
Financial Statements and Notes thereto.

DIRECTORS' RESPONSIBILITY STATEMENT

Based on the framework of internal financial controls established
and maintained by the Company, work performed by the Internal,
Statutory, Cost and Secretarial Auditors including financial
reporting by the Statutory Auditors and the reviews performed
by Management and the relevant Board Committees, including
Audit Committee, the Board is of the opinion that the Company's
internal financial controls were adequate and effective during
Financial Year 2024-25.

Accordingly, pursuant to Section 134(3)(C)read with Section
134(5) of the Companies Act, 2013, the Board of Directors, to the
best of their knowledge and ability state that:

(i) in the preparation of the annual accounts for the year ended
31 March 2025, the applicable accounting standards read
with requirements set out under Schedule III to the Act, have
been followed and there are no material departures;

(ii) such accounting policies have been selected and applied
consistently and judgments and estimates have been made
that are reasonable and prudent so as to give a true and
fair view of the state of affairs of the company as at 31st
March 2025 and of the profit of the company for the year
ended on that date.

(iii) proper and sufficient care has been taken for the maintenance
of adequate accounting records in accordance with the
provisions of the Companies Act, 2013 for safeguarding the
assets of the Company and for preventing and detecting
fraud and other irregularities;

(iv) the annual accounts have been prepared on a
going concern basis;

(v) the Directors have laid down internal financial controls to
be followed by the Company and that such internal financial
controls are adequate and are operating effectively; and

(vi) the Directors have devised proper systems to ensure
compliance with the provisions of all applicable laws and
that such systems are adequate and operating effectively.

BUSINESS RESPONSIBILITY AND SUSTANABILITY
REPORT (BRSR)

As at 31st March, 2025, the Company is not covered amongst top
1000 listed entities based on market capitalisation, yet in terms of
Regulation 34(2)(f) further read with Regulation 3(2) of the Listing
Regulations, Business Responsibility and Sustainability Report
(BRSR) of the Company for FY 2024-25 is annexed at Annexure-10
of Board's Report and forms part of Annual Report of the Company.

INSOLVENCY & BANKRUPTCY CODE, 2016

There were no proceedings initiated/pending against your
Company under the Insolvency and Bankruptcy Code, 2016, which
impacts the business of the Company.

DIFFERENCE IN AMOUNTS OF VALUATIONS, IF ANY

There were no instances where your Company required the
valuation for one time settlement or while taking any loan from the
Banks or Financial Institutions. The Company has not made any
onetime settlement during the Financial Year 2024-25 with Banks
or Financial Institution.

ACKNOWLEDGMENT

Your Directors convey sincere thanks to the various agencies of
the Central and State Governments, Banks and other concerned
agencies for all the assistance and cooperation extended to the
Company for their continued support. The Directors also deeply
appreciate and acknowledge the trust and confidence the vendors,
suppliers, dealers, customers, shareholders and investors
reposed in the Company. Your Directors also place on record their
appreciation for the dedicated services rendered by the workers,
staff and officers of the Company.

For and on behalf of Board of Directors of
Kuantum Papers Limited

(CIN: L21012PB1997PLC035243)

Jagesh Kumar Khaitan

Dated: 20th May, 2025 Chairman

Place: Chandigarh DIN: 00026264