Equity Shares:

The Equity Shareholders have:- 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.

- 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.

- 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.

B. Term Loans of H272.34 Crore (FIs - HNil, Banks H272.34 Crore) and NCD of H125 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 H22.34 Crore is repayable in 1 half-yearly instalment in August 2023.

2 Term Loan of H250 Crore is repayable in total 18 quaterly instalmenst from June 2023 to September 2027.

3 NCDs of H125 Crore is repayable in 13 Half yearly installment from May 2023 to May 2029.

C. Term Loans of H1453.48 Crore (FIs - H371.98 Crore, Banks H1081.50 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 H506.38 Crore are repayable in total 105 equal Quarterly-instalments from June 2023 to March 2032.

2 Term Loans aggregating to H663.10 Crore are repayable in total 30 equal half-yearly instalments from June 2023 to June 2031.

3 Term Loans of H284 Crore are repayable in 34 quaterly instalmenst from June 2023 to September 2031.

D. Secured Term loans from Financial Institutions and Banks have been reduced by H4.88 Crore (FIs - H1.61 Crore, Banks Rs 3.27 Crore) and NCDs have been reduced by H2.41 Crore due to effective rate of interest.

E. Secured Term loans from Financial Institutions and Banks include H685.43 Crore foreign currency loans. Certain charges are in the process of satisfaction.

F. Lease Liabilities aggregating to H64.01 Crore is repayable in total 493 equal monthly installments from April 2023 to Sep 2041.

G . Public deposits are due for repayment in 2023-24,2024-25 & 2025-26.

# 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.

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.

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 H34.50 Crore (Previous year H45.75 Crore ) and other parties amounting

to HNIL (Previous year H15 Crore ) mentioned above for general business purpose.

NOTE 40

a) The Company had invested H26.72 Crores 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 has made provision of H11.10 Crores against its investment in subsidiary of H22.37 Crores.

b) Sales include export incentives of H10.38 Crore (Previous year H10.44 Crore).

c) Interest Income includes H0.44 Crore (Previous year Rs 2.10 Crore) on Deposits with Banks and H60.69 Crore (Previous year H51.51 Crore) on others.

d) Scrap sale of H25.42 Crore (Previous year H14.85 Crore) has been netted off from Consumption of Stores and Spares.

e) The Board of Directors has recommended a final Dividend of H4/- per share (40%), on the Equity Share Capital for the financial year ended 31^st March, 2023. This is in addition to Interim Dividend of H4/- (40%) per Equity Share declared and paid by the Board of Directors during the said financial year.

NOTE 41 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.

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.

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 H0.70 Crore (Previous year H0.91 Crore) for Superannuation Fund.

b) Other long-term benefits

Amount recognized as an expense and included in Note 32 Item "Salaries, Wages, Allowances etc. H4.57 Crore (Previous year H1.38 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" H10.74 Crore (Previous year H11.20 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).

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 H 163.13 Crore and H217.19 Crore as of March 31,2023 and March 31,2022, 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.

532 Competition and Price risk

The Company faces competition from local and foreign competitors. Nevertheless, it believes that it has competitive advantage in terms of high quality products and by continuously upgrading its expertise and range of products to meet the needs of its customers.

NOTE 54 DERIVATIVE FINANCIAL INSTRUMENTS

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.

Interest Rate Swaps

The Company has variable interest borrowings. To offset the risk of variation in interest rates, the Company has entered into, fix pay and variable receipt, interest rate swaps. These swap contracts are in US Dollar, Euro and INR. Outstanding amortised notional value of loan for swap contracts and MTM taken there on are as follows :

NOTE 55 ACQUISITION OF CONTROLLING STAKE IN SUBSIDIARIES

i) The Board of Directors at its meeting held on 21^st November 2022 had approved acquisition of 85% stake in Horizon Packs Private Limited (HPPL) and Securipax Packaging Private Limited (SPPL) by way of entering into separate Share Purchase and Shareholder's Agreements (SPSHAs). Acquisition was completed on 12^th December 2022 pursuant to which HPPL and SPPL became subsidiary of the Company. The impact of Business Combination has been given in the Consolidated financials of the Company as per IND AS 103.

ii) In terms of Share Purchase and Shareholder's Agreement (SPSA) H25.33 crores have been deposited into the escrow account. The Company and promoters of HPPL are join signatory to this escrow account. The Aggregate Escrow Amount (or part thereof) shall be invested from time to time in terms of SPSA. The Principals i.e. JK Paper Ltd ( the Company ) and HPPL shall, provide joint Written Instructions to the Escrow Agent who shall disburse the Permitted Investment Amount to the AMC for investment into permitted investments.(Refer note no.9)

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) Trade Payable Turnover Ratio: Primarily on account of increase in cost of goods sold

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

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. During the year, impairment charges H22.56 crore in respect of property,plant and equipment has been provided (refer note no.46). 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.

NOTE 60 SEGMENT INFORMATION

Information about primary segment

The Company has one reportable business segment i.e. Paper and Board 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.