అకౌంట్స్ గమనికలుBalkrishna Paper Mills Ltd.

Mar 31, 2025

N. Provisions, Contingent Liabilities and Contingent
Assets

Provision is recognised if as a result of a past event,
the Company has a present obligation (legal or
constructive) that can be estimated reliably and it is
probable that an outflow of economic benefits will
be required to settle the obligation. Provisions are
recognised at the best estimate of the expenditure
required to settle the present obligation at the balance
sheet date. If the effect of time value of money is
material, provisions are discounted using a current
pre-tax rate that reflects, when appropriate, the risks
specific to the liability.

Contingent liability exists when there is a possible
but not probable obligation, or a present obligation
that may, but probably will not, require an outflow
of resources, or a present obligation whose amount
cannot be estimated reliably. Contingent liabilities do
not warrant provisions but are disclosed unless the
possibility of outflow of resources is remote. Contingent
assets are neither recognised nor disclosed in the
financial statements. However, when the realisation of
income is virtually certain, then the related asset is not
a contingent asset and its recognition is appropriate.

O. Earnings per share (EPS)

Basic EPS is computed using the weighted average
number of equity shares outstanding during the period.
Diluted EPS is computed using the weighted average
number of equity and dilutive equity equivalent shares
outstanding during the period except where the results
would be anti-dilutive.

P. Key estimates and assumptions

The preparation of financial statements in accordance
with Ind AS requires use of estimates and assumptions
for some items, which might have an effect on their
recognition and measurement in the balance sheet
and statement of profit and loss. The actual amounts
realised may differ from these estimates.

Estimates and assumptions are required in particular
for:

• Determination of the estimated useful lives of
tangible assets and intangible assets and the
assessment as to which components of the cost
may be capitalized.

Useful lives of tangible assets and intangible
assets are based on the life prescribed in Schedule
II of the Companies Act, 2013. In cases, where
the useful lives are different from that prescribed
in Schedule II, they are based on management
estimate, taking into account the nature of the
asset, the estimated usage of the asset, the
operating conditions of the asset, past history of
replacement, anticipated technological changes,
manufacturers'' warranties and maintenance
support. Assumptions also need to be made,
when the Company assesses, whether an asset
may be capitalized and which components of the
cost of the asset may be capitalised.

• Recognition and measurement of defined benefit
obligations

The obligation arising from defined benefit plan is
determined on the basis of actuarial assumptions.
Key actuarial assumptions include discount rate,
trends in salary escalation and vested future
benefits and life expectancy. The discount rate is
determined by reference to market yields at the
end of the reporting period on government bonds.
The period to maturity of the underlying bonds
correspond to the probable maturity of the post¬
employment benefit obligations.

• Provisions and contingent liabilities

The Company exercises judgment in measuring
and recognising provisions and the exposures to
contingent liabilities related to pending litigation
or other outstanding claims subject to negotiated
settlement, mediation, arbitration or government
regulation, as well as other contingent liabilities.
Judgment is necessary in assessing the likelihood
that a pending claim will succeed, or a liability
will arise, and to quantify the possible range of
the financial settlement. Because of the inherent
uncertainty in this evaluation process, actual losses
may be different from the originally estimated
provision.

• Measurement of fair values

The Company''s accounting policies and
disclosures require the measurement of fair values,
for both financial and non-financial assets and
liabilities. The Company has an established control
framework with respect to the measurement of fair
values.

They regularly review significant unobservable
inputs and valuation adjustments. If third party
information is used to measure fair values then
the finance team assesses the evidence obtained
from the third parties to support the conclusion
that such valuations meet the requirements of Ind
AS, including the level in the fair value hierarchy in
which such valuations should be classified.

When measuring the fair value of an asset or a
liability, the Company uses observable market
data as far as possible. Fair values are categorized
into different levels in a fair value hierarchy based
on the inputs used in the valuation techniques as
follows:

• Level 1: quoted prices (unadjusted) in active
markets for identical assets or liabilities.

• Level 2: inputs other than quoted prices
included in 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 asset or liability that
are not based on observable market data
(unobservable inputs).

If the inputs used to measure the fair value of an
asset or a liability fall into different levels of the fair
value hierarchy, then the fair value measurement
is categorized in its entirety in the same level of the
fair value hierarchy as the lowest level input that is
significant to the entire measurement.

Q. Exceptional Items

When items of income and expense within profit or

loss from ordinary activities are of such size, nature or
incidence that their disclosure is relevant to explain the
performance of the Company for the period, the nature
and amount of such items is disclosed separately under
the head exceptional item.

R. Non - Current Assets Held for sale

Non-current assets and disposal groups are classified
as held for sale if their carrying amount will be recovered
principally through a sale transaction rather than
through continuing use and its sale is highly probable.
The sale is considered highly probable only when the
asset or disposal groups is available for immediate sale
in its present condition, it is unlikely that the sale will be
withdrawn and the sale is expected to be completed
within one year from the date of classification. Non¬
current assets (and disposal groups) classified as held
for sale are measured at the lower of their carrying
amount and fair value less costs to sell. These are not
depreciated or amortised once classified as held for
sale. Assets and liabilities classified as held for sale are
presented separately in the Balance Sheet.

Non-current assets that ceases to be classified as held
for sale are measured at lower of (i) its carrying amount
before the asset was classified as held for sale, adjusted
for depreciation that would have been recognised had
that asset not been classified as held for sale, and (ii)
its recoverable amount at the date when the disposal
group ceases to be classified as held for sale.

S. Discontinued operations and non-current assets
held for sale

Discontinued operation is a component of the
Company that has been disposed of or classified as
held for sale and represents a major line of business.
Non-current assets and disposal groups are classified
as held for sale if their carrying amount is intended to
be recovered principally through a sale (rather than
through continuing use) when the asset (or disposal
group) is available for immediate sale in its present
condition subject only to terms that are usual and
customary for sale of such asset (or disposal group)
and the sale is highly probable and is expected to
qualify for recognition as a completed sale within one
year from the date of classification. Non-current assets
and disposal groups classified as held for sale are
measured at lower of their carrying amount and fair
value less costs to sell

T. Recent Accounting Pronouncements:

Ministry of Corporate Affairs (“MCA”) notifies new
standard or amendments to the existing standards
under Companies (Indian Accounting Standards)
Rules as issued from time to time. During the year
ended March 31, 2025, MCA has notified Ind AS 117
Insurance Contracts and amendments to Ind As 116
Leases, relating to sale and lease back transactions,
applicable from April 1, 2024. The Company has
assessed that there is no significant impact on its
financial statements.

On May 9, 2025, MCA notifies the amendments to Ind
AS 21 Effects of Changes in Foreign Exchange Rates.
These amendments aim to provide clearer guidance
on assessing currency exchangeability and estimating
exchange rates when currencies are not readily
exchangeable. The amendments are effective for
annual periods beginning on or after April 1, 2025. The
Company is currently assessing the probable impact of
these amendments on its financial statements.

*Related to discontiued operations

The company offsets tax assets and liabilities if it has a legally enforceable right to set off current tax assets and
current tax liabilities and the deferred tax assets and deferred tax liabilities relate to income taxes levied by the
same tax authority.

Significant management judgement is required in determining provision for income tax, deferred income tax assets
and liabilities and recoverability of deferred income tax assets. The recoverability of deferred income tax assets
is based on estimates of taxable income in which the relevant entity operates and the period over which deferred
income tax assets will be recovered.

During the previous year, The Company has reassessed the deferred tax, there is deferred tax assets (Net) on
account of unabsorbed depreciation and accumulated losses. However, on prudence basis the Company has
recognised the deferred tax assets to the extent of deferred tax liabilities as provided in earlier years.

B. Measurement of fair values

Ind AS 107, ''Financial Instrument - Disclosure'' requires classification of the valuation method of financial instruments
measured at fair value in the Balance Sheet, using a three level fair-value-hierarchy (which reflects the significance
of inputs used in the measurements). The hierarchy gives the highest priority to un-adjusted quoted prices in active
markets for identical assets or liabilities (Level 1 measurements) and lowest priority to un-observable inputs (Level 3
measurements). Fair value of derivative financial assets and liabilities are estimated by discounting expected future
contractual cash flows using prevailing market interest rate curves. The three levels of the fair-value-hierarchy
under Ind AS 107 are described below:

Level 1: Level 1 Heirarchy includes financial instruments measured using quoted prices.

Level 2: The fair value of financial instruments that are not traded in an active market are determined using valuation
techniques which maximise the use of observable market data and rely as little as possible on entity specific
estimates. If all significant inputs required to fair value an instrument are observable, the instrument is included in
level 2.

Level 3: If one or more of the significant inputs are not based on observable market data, the instrument is included
in level 3.

Transfers between Levels

There have been no transfers between Levels during the reporting periods

The following tables show the valuation techniques used in measuring Level 2 fair values, as well as the significant
unobservable inputs used.

Financial instruments measured at fair value

C. Financial risk management

The Company has exposure to the following risks arising from financial instruments:

¦ Credit risk ;

¦ Liquidity risk ; and

¦ Market risk

i. Risk management framework

The Company''s Board of Directors has overall responsibility for the establishment and oversight of the
Company risk management framework. The Board of Directors is responsible for developing and monitoring
the Company risk management policies.

The Company''s risk management policies are established to identify and analyse the risks faced by the
Company, to set appropriate risk limits and controls and to monitor risks and adherence to limits. Risk
management policies and systems are reviewed regularly to reflect changes in market conditions and the
Company''s activities. The Company, through its training and management standards and procedures, aims
to maintain a disciplined and constructive control environment in which all employees understand their roles
and obligations.

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

ii. Credit risk

Credit risk is the risk of financial loss to the Company if a customer or counterparty to a financial instrument
fails to meet its contractual obligations, and arises principally from the Company''s receivables from customers,
cash and cash equivalents etc.

The carrying amount of financial assets represents the maximum credit exposure.

Trade receivables

All of the sales are domestic sales. For major part of the sales, customer credit risk is managed by requiring
domestic and export customers to pay advances before transfer of ownership, therefore substantially
eliminating the Company''s credit risk in this respect.

Impairment

Management believes that the unimpaired amounts that are past due by more than 6 months are still
collectible in full, based on historical payment behaviour.

The Company has no other financial assets that are past due but not impaired.

Concentration of credit risk

At 31 March 2025, the carrying amount of the Company''s most significant customer is '' 35.00
lakhs (31st March, 2024 : '' 165.94 lakhs)

Derivatives

The derivatives are entered into with banks with good credit ratings.

Cash and cash equivalents

Credit risk from balances with banks is managed by the Company''s treasury department in
accordance with the company''s policy.

iii. Liquidity risk

"Liquidity risk is the risk that the Company will not be able to meet its financial obligations as they
become due. The Company manages its liquidity risk by ensuring, as far as possible, that it will
always have sufficient liquidity to meet its liabilities when due, under both normal and stressed
conditions, without incurring unacceptable losses or risk to the Company’s reputation.

The Company has not having fund and non-fund based working capital lines from various banks
but the company having Intercoprporate Loan from friend and related party. The Company also
constantly monitors funding options available in the debt and capital markets with a view to
maintaining financial flexibility."

As at 31st March, 2025, the Company had working capital of '' (5200.36) lakhs, including cash
and cash equivalents of '' 82.33 lakhs. As at 31st March, 2024, the Company had working capital
of '' (8680.58) lakhs, including cash and cash equivalents of '' 42.55 lakhs
Exposure to liquidity risk

The table below analyses the Company''s financial liabilities into relevant maturity groupings based
on their contractual maturities for:

* all non derivative financial liabilities

* net and gross settled derivative financial instruments for which the contractual maturites are
essential for the understanding of the timing of the cash flows.

iv. Market risk

Market risk is the risk of loss of future earnings, fair values or future cash flows that may result from adverse
changes in market rates and prices (such as interest rates, foreign currency exchange rates ) or in the price of
market risk-sensitive instruments as a result of such adverse changes in market rates and prices. Market risk
is attributable to all market risk-sensitive financial instruments, all foreign currency receivables and payables
and all short term and long-term debt. The Company is exposed to market risk primarily related to foreign
exchange rate risk, interest rate risk and the market value of its investments. Thus, the Company''s exposure
to market risk is a function of investing and borrowing activities and revenue generating and operating
activities in foreign currencies.
a) Currency risk

The company is exposed to currency risk to the extent that there is a mismatch between the currencies
in which sales, purchase, other expenses and borrowings are denominated and the functional currency
of the company. The functional currency of the company is Indian Rupees (INR). The currencies in
which these transactions are primarily denominated is USD..

The Company generally hedges its estimated foreign currency exposure in respect of its forecast sales
over the following 12 months and borrowings (ECB). The Company uses forward exchange contracts
to hedge its currency risk. Such contracts are generally designated as cash flow hedges.

Further the company hedge its interest rate on External Commercial Borrowings by way of interest rate
swap..

The Company, as per its risk management policy, uses foreign currency forward contract primarily to
hedge foreign exchange. The Company does not use derivative financial instruments for trading or
speculative purposes.

NOTE NO. 36
Capital Management

The Company’s policy is to maintain a strong capital base so as to maintain investor, creditor and market
confidence and to sustain future development of the business.

The Company monitors capital using a ratio of ‘net debt’ to ‘equity’. For this purpose, net debt is defined as
total debt, comprising loans and borrowings less cash and cash equivalents and current investments.

(B) Defined Benefit Plan

In accordance with the provisions of the Payment of Gratuity Act, 1972, the Company has a defined benefit plan
which provides for gratuity payments. The plan provides a lump sum gratuity payment to eligible employees at
retirement or termination of their employment. The amounts are based on the respective employee''s last drawn
salary and the years of employment with the Company.

Liabilities in respect of the gratuity plan are determined by an actuarial valuation, based upon which the Company
makes annual contributions to the Group Gratuity cum Life Assurance Schemes administered by the LIC of India, a
funded defined benefit plan for qualifying employees. Trustees adminster the contributions made by the Company
to the gratuity scheme.

The most recent actuarial valuation of the defined benefit obligation along with the fair valuation of the plan assets
in relation to the gratuity scheme was carried out as at 31st March, 2024. The present value of the defined benefit
obligations and the related current service cost and past service cost, were measured using the Projected Unit
Credit Method.

As per Section 135 of the Companies Act, 2013 Corporate Social Responsibility (CSR) is not applicable for the year.
NOTE NO.46

DISCONTINUED OPERATIONS (MANUFACTURING OF PAPER AND PAPERBOARD)

The Board of Directors decided to discontinue the manufacturing of Paper and Paperboard situated at Ambivali. Over
the years the Company has been incurring heavy losses on account of high cost of production, lower productivity, lower
volume of business and high fixed cost etc. The Company have tried its best to revive the operations by undertaking
various measures in the manufacturing as well as time to time infused funds.However, the losses have continued to
accrue. Therefore, to arrest further losses the Company has kept production activities at Ambivali factory in abeyance
since January 2023. Further, the Company had appointed consultant for exploring various strategies for revamping
the paper & paper board manufacturing activities and also explore alternative business opportunities available to the
Company.

As per the Consultant''s report the manufacturing of paper & paper board from Ambivali factory is not a viable business,
on account of increased challenges due to evolving market conditions, rising competition, and changing consumer
preferences toward digital alternatives. Further, plant and machineries at Ambivali factory has become obsolete and any
technological upgradation would require huge amount of capital investment, which would in turn increase the borrowings.
In view of the above, paper manufacturing operation from Ambivali factory is not feasible. Hence, the Company has
decided to discontinue the manufacturing of paper and paperboard situated at Ambivali.

In accordance with Indian Accounting Standard (Ind AS) 105 - Non-current Assets Held for Sale and Discontinued
Operations, and Schedule III of the Companies Act, 2013, the financial statements of the Paper and Paperboard segment
have been classified as Discontinued Operations. Consequently, the Company''s Statement of Profit and Loss for the
year ended pertains to its continuing operations only and for that purpose the comparative financial statements for the
corresponding year ended have been restated accordingly.

NOTE NO.47
GOING CONCERN

The discontinuance of manufacturing of Paper & Paper Boards at Ambivali factory is not expected to impact the
Company''s going concern assumption. As per the report submitted by the consultant, the Company can continue with
Paper & Paper Boards business and trade in plastic bottles. Moreover, the resources available with the Company such
as land, building and experience in the industry of Paper & Paper Boards business for more than 4 decades can be used
for the future business prospects.

The Company is evaluating various options available and intend to continue the Paper & Paper Boards business and
Trading of plastic & packaging materials. Further, the Company will raise necessary funds for working capital requirements
and other purposes. On account of all this, the Company has prepared the financial statements on going concern basis.

OTHER STATUTORY INFORMATIONS:

i) The Company does not have any Benami property, where any proceeding has been initiated or pending against the
Group for holding any Benami property.

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

iii) The Company does not have any charges or satisfaction which is yet to be registered with ROC beyond the
statutory period.

iv) The Company has not traded or invested in Crypto currency or Virtual Currency during the financial year.

v) The Company has not been declared willful defaulter by any bank or financial institution or government or any
government authority

vi) The Company has 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:

a) 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

b) Provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries.

vii) All the title deeds of immovable properties are in the name of Company.

viii) The Company has 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 Group shall:

a) 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

b) Provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries,

ix) The Company has not any 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)

NOTE NO.49

Previous year''s figures have been regrouped/reclassified wherever necessary to correspond with the current year''s
classification/disclosure.

As per our report of even date attached For and on behalf of the Board of Directors

For D S M R & CO
Chartered Accountants

(Firm Reg. No.128085W)

Sh_ail_end_ra Si_ngh R_ath_ore Anurag P Poddar Manish O Malpani Omprakash Singh

P_artn_er Chairman & Managing Director Whole-time Director & CFO Company Secretary

Membership No. 600395 ^{DIN: 00599143 DIN:} 00055430

Place : Mumbai,

Dated : 29th May, 2025

---

Mar 31, 2024

N. Provisions, Contingent Liabilities and Contingent Assets

Provision is recognised if as a result of a past event, the Company has a present obligation (legal or constructive) that can be estimated reliably and it is probable that an outflow of economic benefits will be required to settle the obligation. Provisions are recognised at the best estimate of the expenditure required to settle the present obligation at the balance sheet date. If the effect of time value of money is material, provisions are discounted using a current pre-tax rate that reflects, when appropriate, the risks specific to the liability.

Contingent liability exists when there is a possible but not probable obligation, or a present obligation that may, but probably will not, require an outflow of resources, or a present obligation whose amount cannot be estimated reliably. Contingent liabilities do not warrant provisions but are disclosed unless the possibility of outflow of resources is remote. Contingent assets are neither recognised nor disclosed in the financial statements. However, when the realisation of income is virtually certain, then the related asset is not a contingent asset and its recognition is appropriate.

O. Earnings per share (EPS)

Basic EPS is computed using the weighted average number of equity shares outstanding during the period. Diluted EPS is computed using the weighted average number of equity and dilutive equity equivalent shares outstanding during the period except where the results would be anti-dilutive.

P. Key estimates and assumptions

The preparation of financial statements in accordance with Ind AS requires use of estimates and assumptions for some items, which might have an effect on their recognition and measurement in the balance sheet and statement of profit and loss. The actual amounts realised may differ from these estimates.

Estimates and assumptions are required in particular

for:

• Determination of the estimated useful lives of tangible assets and intangible assets and the assessment as to which components of the cost may be capitalized.

Useful lives of tangible assets and intangible assets are based on the life prescribed in Schedule II of the Companies Act, 2013. In cases, where the useful lives are different from that prescribed in Schedule II, they are based on management estimate, taking into account the nature of the asset, the estimated usage of the asset, the operating conditions of the asset, past history of replacement, anticipated technological changes, manufacturers'' warranties and maintenance support. Assumptions also need to be made, when the Company assesses, whether an asset may be capitalized and which components of the cost of the asset may be capitalised.

• Recognition and measurement of defined benefit obligations

The obligation arising from defined benefit plan is determined on the basis of actuarial assumptions. Key actuarial assumptions include discount rate, trends in salary escalation and vested future benefits and life expectancy. The discount rate is determined by reference to market yields at the end of the reporting period on government bonds. The period to maturity of the underlying bonds correspond to the probable maturity of the postemployment benefit obligations.

• Provisions and contingent liabilities

The Company exercises judgment in measuring and recognising provisions and the exposures to contingent liabilities related to pending litigation or other outstanding claims subject to negotiated settlement, mediation, arbitration or government regulation, as well as other contingent liabilities. Judgment is necessary in assessing the likelihood that a pending claim will succeed, or a liability will arise, and to quantify the possible range of the financial settlement. Because of the inherent uncertainty in this evaluation process, actual losses may be different from the originally estimated provision.

• Measurement of fair values

The Company''s accounting policies and disclosures require the measurement of fair values, for both financial and non-financial assets and liabilities. The Company has an established control framework with respect to the measurement of fair values.

They regularly review significant unobservable inputs and valuation adjustments. If third party information is used to measure fair values then the finance team assesses the evidence obtained from the third parties to support the conclusion that such valuations meet the requirements of Ind AS, including the level in the fair value hierarchy in which such valuations should be classified.

When measuring the fair value of an asset or a liability, the Company uses observable market data as far as possible. Fair values are categorized into different levels in a fair value hierarchy based on the inputs used in the valuation techniques as follows:

• Level 1: quoted prices (unadjusted) in active markets for identical assets or liabilities.

• Level 2: inputs other than quoted prices included in 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 asset or liability that are not based on observable market data (unobservable inputs).

If the inputs used to measure the fair value of an asset or a liability fall into different levels of the fair value hierarchy, then the fair value measurement is categorized in its entirety in the same level of the fair value hierarchy as the lowest level input that is significant to the entire measurement.

Q. Exceptional Items

When items of income and expense within profit or loss from ordinary activities are of such size, nature or incidence that their disclosure is relevant to explain the performance of the Company for the period, the nature and amount of such items is disclosed separately under the head exceptional item.

R. Non - Current Assets Held for sale

Non-current assets and disposal groups are classified as held for sale if their carrying amount will be recovered principally through a sale transaction rather than through continuing use and its sale is highly probable. The sale is considered highly probable only when the asset or disposal groups is available for immediate sale in its present condition, it is unlikely that the sale will be withdrawn and the sale is expected to be completed within one year from the date of classification. Non-current assets (and disposal groups) classified as held for sale are measured at the lower of their carrying amount and fair value less costs to sell. These are not depreciated or amortised once classified as held for sale. Assets and liabilities classified as held for sale are presented separately in the Balance Sheet.

Non-current assets that ceases to be classified as held for sale are measured at lower of (i) its carrying amount before the asset was classified as held for sale, adjusted for depreciation that would have been recognised had that asset not been classified as held for sale, and (ii) its recoverable amount at the date when the disposal group ceases to be classified as held for sale.

S. Recent Accounting Pronouncements:

The Ministry of Corporate Affairs (“MCA”) notifies new standards or amendments to the existing standards under Companies (Indian Accounting Standards) rules as issued from time to time. During the year ended March 31,2024, MCA has not notified any new standards or amendments to the existing standards applicable to the Company.

B. Measurement of fair values

Ind AS 107, ''Financial Instrument - Disclosure'' requires classification of the valuation method of financial instruments measured at fair value in the Balance Sheet, using a three level fair-value-hierarchy (which reflects the significance of inputs used in the measurements). The hierarchy gives the highest priority to un-adjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and lowest priority to un-observable inputs (Level 3 measurements). Fair value of derivative financial assets and liabilities are estimated by discounting expected future contractual cash flows using prevailing market interest rate curves. The three levels of the fair-value-hierarchy under Ind AS 107 are described below:

Level 1: Level 1 Hierarchy includes financial instruments measured using quoted prices.

Level 2: The fair value of financial instruments that are not traded in an active market are determined using valuation techniques which maximise the use of observable market data and rely as little as possible on entity specific estimates. If all significant inputs required to fair value an instrument are observable, the instrument is included in level 2.

Level 3: If one or more of the significant inputs are not based on observable market data, the instrument is included in level 3.

Transfers between Levels

There have been no transfers between Levels during the reporting periods

The following tables show the valuation techniques used in measuring Level 2 fair values, as well as the significant unobservable inputs used.

Financial instruments measured at fair value

The Company has exposure to the following risks arising from financial instruments:

¦ Credit risk ;

¦ Liquidity risk ; and

¦ Market risk

i. Risk management framework

The Company''s board of directors has overall responsibility for the establishment and oversight of the Company risk management framework. The board of directors is responsible for developing and monitoring the Company risk management policies.

The Company''s risk management policies are established to identify and analyse the risks faced by the Company, to set appropriate risk limits and controls and to monitor risks and adherence to limits. Risk management policies and systems are reviewed regularly to reflect changes in market conditions and the Company''s activities. The Company, through its training and management standards and procedures, aims to maintain a disciplined and constructive control environment in which all employees understand their roles and obligations.

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

ii. Credit risk

Credit risk is the risk of financial loss to the Company if a customer or counterparty to a financial instrument fails to meet its contractual obligations, and arises principally from the Company''s receivables from customers, cash and cash equivalents etc.

The carrying amount of financial assets represents the maximum credit exposure.

Trade receivables

All of the sales are domestic sales. For major part of the sales, customer credit risk is managed by requiring domestic and export customers to pay advances before transfer of ownership, therefore substantially eliminating the Company''s credit risk in this respect.

Impairment

Management believes that the unimpaired amounts that are past due by more than 6 monhs are still collectible in full, based on historical payment behaviour.

The Company has no other financial assets that are past due but not impaired.

Concentration of credit risk

At 31 March 2024, the carrying amount of the Company''s most significant customer is ''165.94 lakhs (31st March, 2023 : ''3.80 lakhs)

Derivatives

The derivatives are entered into with banks with good credit ratings.

Cash and cash equivalents

Credit risk from balances with banks is managed by the Company''s treasury department in accordance with the company''s policy.

iii. Liquidity risk

Liquidity risk is the risk that the Company will not be able to meet its financial obligations as they become due. The Company manages its liquidity risk by ensuring, as far as possible, that it will always have sufficient liquidity to meet its liabilities when due, under both normal and stressed conditions, without incurring unacceptable losses or risk to the Company’s reputation.

The Company has obtained fund and non-fund based working capital lines from various banks. The Company also constantly monitors funding options available in the debt and capital markets with a view to maintaining financial flexibility.

As at 31st March, 2024, the Company had working capital of '' (8680.58) lakhs, including cash and cash equivalents of ''42.55 lakhs. As at 31st March, 2023, the Company had working capital of ''(7256.30) lakhs, including cash and cash equivalents of ''43.76 lakhs

Exposure to liquidity risk

The table below analyses the Company''s financial liabilities into relevant maturity groupings based on their contractual maturities for:

* all non derivative financial liabilities

* net and gross settled derivative financial instruments for which the contractual maturites are essential for the understanding of the timing of the cash flows.

iv. Market risk

Market risk is the risk of loss of future earnings, fair values or future cash flows that may result from adverse changes in market rates and prices (such as interest rates, foreign currency exchange rates ) or in the price of market risk-sensitive instruments as a result of such adverse changes in market rates and prices. Market risk is attributable to all market risk-sensitive financial instruments, all foreign currency receivables and payables and all short term and long-term debt. The Company is exposed to market risk primarily related to foreign exchange rate risk, interest rate risk and the market value of its investments. Thus, the Company''s exposure to market risk is a function of investing and borrowing activities and revenue generating and operating activities in foreign currencies. a) Currency risk

The company is exposed to currency risk to the extent that there is a mismatch between the currencies in which sales, purchase, other expenses and borrowings are denominated and the functional currency of the company. The functional currency of the company is Indian Rupees (INR). The currencies in which these transactions are primarily denominated is USD.

The Company generally hedges its estimated foreign currency exposure in respect of its forecast sales over the following 12 months and borrowings (ECB). The Company uses forward exchange contracts to hedge its currency risk. Such contracts are generally designated as cash flow hedges.

Further the company hedge its interest rate on External Commercial Borrowings by way of interest rate swap.

The Company, as per its risk management policy, uses foreign currency forward contract primarily to hedge foreign exchange. The Company does not use derivative financial instruments for trading or speculative purposes.

The Company’s policy is to maintain a strong capital base so as to maintain investor, creditor and market confidence and to sustain future development of the business.

The Company monitors capital using a ratio of ‘net debt’ to ‘equity’. For this purpose, net debt is defined as total debt, comprising loans and borrowings less cash and cash equivalents and current investments.

NOTE NO.39

During the year, the Company has initiated the process of sale of certain non-core assets and has received advance of '' 240.85 Lakhs. Accordingly, the Company has reclassified such assets from PPE assets to Assets held for sale (AHFS). As the carrying value of the assets are higher than the expected fair value less cost of sell, the Company has adjusted carrying value of AHFS to ''709.60 Lakhs and recognised re-measurement loss of ''3,492.00 Lakhs under Exceptional Items. The transactions are expected to be completed in financial year 2024-2025.

NOTE NO.40

Employee Benefit obligations (A) Defined Contribution Plan

The Company has various schemes for long-term benefits such as provident fund and superannuation. In case of funded schemes, the funds are recognised by the Income tax authorities and administered through trustees / appropriate authorities. The Company''s defined contribution plans are superannuation and employees'' pension scheme (under the provisions of the Employees'' Provident Funds and Miscellaneous Provisions Act, 1952) since the Company has no further obligation beyond making the contributions. The liabilities of the Company on the exempt Provident Fund managed by the trustees is restricted to the interest shortfall if any.

(B) Defined Benefit Plan

In accordance with the provisions of the Payment of Gratuity Act, 1972, the Company has a defined benefit plan which provides for gratuity payments. The plan provides a lump sum gratuity payment to eligible employees at retirement or termination of their employment. The amounts are based on the respective employee''s last drawn salary and the years of employment with the Company.

Liabilities in respect of the gratuity plan are determined by an actuarial valuation, based upon which the Company makes annual contributions to the Group Gratuity cum Life Assurance Schemes administered by the LIC of India, a funded defined benefit plan for qualifying employees. Trustees adminster the contributions made by the Company to the gratuity scheme.

The most recent actuarial valuation of the defined benefit obligation along with the fair valuation of the plan assets in relation to the gratuity scheme was carried out as at 31st March, 2024. The present value of the defined benefit obligations and the related current service cost and past service cost, were measured using the Projected Unit Credit Method.

Based on the actuarial valuation obtained in this respect, the following table sets out the details of the employee benefit obligation and the plan assets as at balance sheet date:

NOTE NO.46

(a) The Company has incurred loss after Tax of ''7113.93 lakhs for the year ended 31st March, 2024 (''5187.68 lakhs for the year ended 31st March, 2023) and other equity of the company as on 31st March, 2024 amounting to ''(-) 23262.05 lakhs ''(-) 16120.44 Lakhs as on 31st March, 2023). The net worth of the company eroded completely due to continuous losses over the period of time.

(b) (A). (i) During the year under review, Company continued to keep production activity of paper and paper board

business in abeyance and started the business of trading in Plastics & Packaging Materials

(ii) The Company is continuing its efforts for revamping its existing business by doing structural changes, reducing its high cost borrowings etc. Company has also appointed a consultant to evaluate the existing business and explore the possibility of entering into new areas of business to put to use the existing resources of the company to the optimum level.

(B) (i) Company has received security deposit of ''17.50 crores by leasing its unused land at Ambivali and

utilised the said proceeds for repayment of debts

(ii) The Board of Directors had approved a proposal to raise the additional funds of ''4510.73 Lacs through “Right Issue of Equity Shares” aggregating of 2,14,79,688 equity share of ''10 Each at a price of ''21/-per Share (including premium of ''11/- per share) to the eligible Shareholders in the ratio of 2 (Two) Rights Shares for every 1 (One) Equity Shares held. Accordingly, the record date set for rights issue was March 15, 2024 and kept opened for subscription from April 02, 2024 to April 15, 2024, it was fully subscribed and shares were allotted on April 19, 2024. Proceeds of the Right issue was received on May 07, 2024 and the company utilised / utilising the funds for the purpose for which Right shares were issued.,

(iii) in addition to above, the company also raised / raising the funds through sale of Non-core fixed assets & other Plant and Equipments as approved by the shareholders through postal ballot on September 10, 2023.

Looking into all these facts, the Company has prepared the financial results as a “going concern basis”.

NOTE NO.47

OTHER STATUTORY INFORMATIONS:

i) The Company does not have any Benami property, where any proceeding has been initiated or pending against the Group for holding any Benami property.

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

iii) The Company does not have any charges or satisfaction which is yet to be registered with ROC beyond the

statutory period.

iv) The Company has not traded or invested in Crypto currency or Virtual Currency during the financial year.

v) The Company has not been declared willful defaulter by any bank or financial institution or government or any

government authority

vi) The Company has 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:

a) 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

b) Provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries.

vii) All the title deeds of immovable properties are in the name of Company.

viii) The Company has 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 Group shall:

a) 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

b) Provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries,

ix) The Company has not any 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)

NOTE NO.48

Due to substantial losses, the company has not incurred any expenditure under Corporate Social Responsibility (CSR) of the company.

NOTE NO.53

Previous year''s figures have been regrouped/reclassified wherever necessary to correspond with the current year''s classification/disclosure.

As per our report of even date attached For D S M R AND CO Chartered Accountants

(Firm Reg. No.128085W)

For and on behalf of the Board of Directors

Dharmendra S. Songira Anurag P Poddar Manish O Malpani Omprakash Singh

Partner Chairman & Managing Director Whole-time Director & Company Secretary

Membership No. 113275 DIN:00599143 CFO

DIN:00055430

Place : Mumbai,

Dated : 13th May, 2024

---

Mar 31, 2018

1 (a) General information

Balkrishna Paper Mills Limited (‘the Company’) is engaged in the business of manufacturing and selling of “Paper and Paper Boards” which are used mainly for packaging industry, catering to the needs of Pharmaceuticals, Cosmetics, Health Care products, readymade garments, Food Products, Match boxes and mainly for FMCG Segments.

The company is a public limited company incorporated and domiciled in India and has its registered office at A/7, Trade World, Kamala City, Senapati Bapat Marg, Lower Parel(West), Mumbai, Maharashtra, India.

Note no. 2

First time adoption of Ind AS

I. Transition to Ind AS

These are the company’s first financial statements prepared in accordance with Ind AS.

The accounting policies set out in note 1(b) have been applied in preparing the financial statements for the year ended 31st March 2018, the comparative information presented in these financial statements for the year ended 31st March 2017 and in the presentation of an opening Ind AS balance sheet at 1st April 2016 (the Company’s date of transition). In preparing its opening Ind AS balance sheet, the Company has adjusted the amount reported previously in financial statements prepared in accordance with the accounting standards notified under Companies (Accounting Standards) Rules, 2006 (as amended) and other relevant provisions of the Act (previous GAAP or Indian GAAP). An explanation of how the transition from previous GAAP to Ind AS has affected the company’s financial position and financial performance is set out in the following tables and notes.

II. Exemptions from retrospective application

Ind AS 101 allows first-time adopters certain exemptions from the retrospective application of certain requirements under Ind AS. The Company has applied the following exemptions:

a) Deemed cost for Property, Plant and Equipment (PPE) and Intangible assets

Ind AS 101 permits a first time adopters to continue with the carrying value for all its property, plant and equipment and intangible asset as recognised in the financial statements as at the date of transition to Ind AS, measured as per the previous GAAP and use that as its deemed cost as at the date of transition.

Accordingly, the company has elected to measure all of its PPE and intangible asset at their previous GAAP carrying values. The remaining voluntary exemptions as per Ind AS 101 - First time adoption either do not apply or are not relevant to the Company

III. Exceptions from full retrospective application:

a) Estimates

Upon an assessment of the estimates made under Indian GAAP, the Company has concluded that there was no necessity to revise such estimates under Ind AS, except where estimates were required by Ind AS and not required by Indian GAAP.

The company made estimate for following items in accrodance with Ind AS at the date of transition as these were not required under previous GAAP:

- Investment in mutual funds carried at FVTPL.

b) Classification and measurement of financial assets

The Company has classified and measured the financial assets (investment in mutual funds) on the basis of facts and circumstances that exist at the date of transition to Ind AS.

The remaining mandatory exceptions either do not apply or are not relevant to the Company.

IV. Reconciliations under Ind AS 101

(a) Reconciliation of Equity as at 31st March 2017

(f) Reconciliation of statement of Cash Flow :

There are no material adjustments to the statement of cash flow as reported under previous GAAP “

(g) Notes to the reconciliation:

1 Fair valuation of investments in mutual funds

Under previous GAAP, invesments in mutual funds were classified as current investments based on the intended holding period and realisability. Current investments were measured at lower of cost or market price as of each reporting date. Under Ind AS, these invesments are required to be measured at fair value. The resulting fair value changes of these investments have been recognised in retained earnings as at the date of transition and subsequently in the profit or loss for the year ended 31st March 2017.

2 Accounting for derivative and foreign exchange differences

a) Ind AS 109 requires all derivatives to be measured at fair value as per Ind AS 113 on the reporting date with both unrealised gains and losses being recognised in the statement of profit and loss for the period in which such changes arise, unless hedge accounting is applied. Accordingly the company has fair valued foreign currency forward contracts outstanding as at transition date and as at 31st March 2017 and recognised gain / loss in the retained earnings and statement of profit and loss respectively and corresponding effect is given to asset or liability for gain and loss respectively, as Derivative Asset and Derivative liability.

b) The company has also transalated all financial assets / financial liabilities denominated in foreign currency at the year end rates.

3 Interest bearing loans and borrowings

Under Indian GAAP, transaction costs incurred in connection with interest bearing loans and borrowings are amortised upfront and charged to profit or loss for the period. Under Ind-AS, transaction costs are included in the initial recognition amount of financial liability and charged to profit or loss using the effective interest method or amortised on straight line basis over the period of loan.

4 Other deferred tax adjustments

Indian GAAP requires deferred tax accounting using the income statement approach, which focuses on differences between taxable profits and accounting profits for the period. Ind AS 12 requires entities to account for deferred taxes using the balance sheet approach, which focuses on temporary differences between the carrying amount of an asset or liability in the balance sheet and its tax base. The application of Ind AS 12 approach has resulted in recognition of deferred tax on new temprorary differences which was not required under Indian GAAP.

5 Remeasurement of post employment benefit obligation

Under Ind AS,remeasurements i.e. acturial gains and losses and the return on plan assets, excluding amounts included in the net interest expense on the net defined benefit liability are recognised in other comprehensive income instead of profit and loss under the previous GAAP.

The company offsets tax assets and liabilities if and only if it has a legally enforceable right to set off current tax assets and current tax liabilities and the deferred tax assets and deferred tax liabilities relate to income taxes levied by the same tax authority.

Significant management judgement is required in determining provision for income tax, deferred income tax assets and liabilities and recoverability of deferred income tax assets. The recoverability of deferred income tax assets is based on estimates of taxable income in which the relevant entity operates and the period over which deferred income tax assets will be recovered.

NOTE NO.3

Financial instruments - Fair values and risk management

A. Accounting classification and fair values

The following table shows the carrying amounts and fair values of financial assets and financial liabilities, including their levels in the fair value hierarchy. It does not include fair value information for financial assets and financial liabilities not measured at fair value if the carrying amount is a reasonable approximation of fair value.

Fair values for financial instruments carried at amortised cost approximates the carrying amount, accordingly the fair values of such financial assets and financial liabilities have not been disclosed separately.

B. Measurement of fair values

Ind AS 107, ‘Financial Instrument - Disclosure’ requires classification of the valuation method of financial instruments measured at fair value in the Balance Sheet, using a three level fair-value-hierarchy (which reflects the significance of inputs used in the measurements). The hierarchy gives the highest priority to un-adjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and lowest priority to un-observable inputs (Level 3 measurements). Fair value of derivative financial assets and liabilities are estimated by discounting expected future contractual cash flows using prevailing market interest rate curves. The three levels of the fair-value-hierarchy under Ind AS 107 are described below:

Level 1: Level 1 Heirarchy includes financial instruments measured using quoted prices.

Level 2: The fair value of financial instruments that are not traded in an active market are determined using valuation techniques which maximise the use of observable market data and rely as little as possible on entity specific estimates. If all significant inputs required to fair value an instrument are observable, the instrument is included in level 2.

Level 3: If one or more of the significant inputs are not based on observable market data, the instrument is included in level 3. Transfers between Levels

There have been no transfers between Levels during the reporting periods

The following tables show the valuation techniques used in measuring Level 2 fair values, as well as the significant unobservable inputs used.

Financial instruments measured at fair value

C. Financial risk management

The Company has exposure to the following risks arising from financial instruments:

- Credit risk ;

- Liquidity risk ; and

- Market risk

i. Risk management framework

The Company’s board of directors has overall responsibility for the establishment and oversight of the Company risk management framework. The board of directors is responsible for developing and monitoring the Company risk management policies.

The Company’s risk management policies are established to identify and analyse the risks faced by the Company, to set appropriate risk limits and controls and to monitor risks and adherence to limits. Risk management policies and systems are reviewed regularly to reflect changes in market conditions and the Company’s activities. The Company, through its training and management standards and procedures, aims to maintain a disciplined and constructive control environment in which all employees understand their roles and obligations.

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

ii. Credit risk

Credit risk is the risk of financial loss to the Company if a customer or counterparty to a financial instrument fails to meet its contractual obligations, and arises principally from the Company’s receivables from customers, cash and cash equivalents, mutual funds, bonds etc.

The carrying amount of financial assets represents the maximum credit exposure.

Trade receivables

Around 25% of the sales are export sales. For major part of the sales, customer credit risk is managed by requiring domestic and export customers to pay advances before transfer of ownership, therefore substantially eliminating the Company’s credit risk in this respect.

Impairment

The ageing of trade receivables that were not impaired was as follows:

Concentration of credit risk

At 31 March 2018, the carrying amount of the Company’s most significant customer is INR 1600.36 lakhs (31st March, 2017 : INR 1301.26 lakhs; 1st April, 2016 : INR 1700.70 lakhs)

Investment in mutual funds

The investment in mutual funds are entered into with credit worthy fund houses. The credit worthiness of these counter parties are evaluated by the management on an ongoing basis and is considered to be good. The Company does not expect any losses from non-performance by these counter-parties.

Derivatives

The derivatives are entered into with banks with good credit ratings.

Cash and cash equivalents

Credit risk from balances with banks is managed by the Company’s treasury department in accordance with the company’s policy.

iii. Liquidity risk

Liquidity risk is the risk that the Company will not be able to meet its financial obligations as they become due. The Company manages its liquidity risk by ensuring, as far as possible, that it will always have sufficient liquidity to meet its liabilities when due, under both normal and stressed conditions, without incurring unacceptable losses or risk to the Company’s reputation. The Company has obtained fund and non-fund based working capital lines from various banks. The Company also constantly monitors funding options available in the debt and capital markets with a view to maintaining financial flexibility.

As at 31st March, 2018, the Company had working capital of INR (3816.78) lakhs, including cash and cash equivalents of INR 9.51 lakhs.

As at 31st March, 2017, the Company had working capital of INR (5453.75) lakhs , including cash and cash equivalents of INR 11.10 lakhs.

As at 1st April, 2016 the Company had working capital of INR (2397.01) lakhs, including cash and cash equivalents of INR 359.55 lakhs and highly marketable current investments of INR 1217.62 lakhs.

Exposure to liquidity risk

The table below analyses the Company’s financial liabilities into relevant maturity groupings based on their contractual maturities for:

* all non derivative financial liabilities

* net and gross settled derivative financial instruments for which the contractual maturites are essential for the understanding of the timing of the cash flows.

iv. Market risk

Market risk is the risk of loss of future earnings, fair values or future cash flows that may result from adverse changes in market rates and prices (such as interest rates, foreign currency exchange rates ) or in the price of market risk-sensitive instruments as a result of such adverse changes in market rates and prices. Market risk is attributable to all market risk-sensitive financial instruments, all foreign currency receivables and payables and all short term and long-term debt. The Company is exposed to market risk primarily related to foreign exchange rate risk, interest rate risk and the market value of its investments. Thus, the Company’s exposure to market risk is a function of investing and borrowing activities and revenue generating and operating activities in foreign currencies.

a) Currency risk

The company is exposed to currency risk to the extent that there is a mismatch between the currencies in which sales, purchase, other expenses and borrowings are denominated and the functional currency of the company. The functional currency of the company is Indian Rupees (INR). The currencies in which these transactions are primarily denominated is USD.

The Company generally hedges its estimated foreign currency exposure in respect of its forecast sales over the following 12 months and borrowings (ECB). The Company uses forward exchange contracts to hedge its currency risk. Such contracts are generally designated as cash flow hedges.

Further the company hedge its interest rate on External Commercial Borrowings by way of interest rate swap.

The Company, as per its risk management policy, uses foreign currency forward contract primarily to hedge foreign exchange. The Company does not use derivative financial instruments for trading or speculative purposes.

Following is the derivative financial instruments to hedge the foreign exchange rate risk as at 31st March, 2018:

Exposure to currency risk

The summary quantitative data about the Company’s exposure to currency risk as reported to the management of the Company is as follows:

Sensitivity analysis

The strenghtening / weakening of the respective foreign currencies with respect to functional currency of company would result in increase or decrease in profit or loss and equity as shown in table below. This analysis assumes that all other variables, in particular interest rates, remain constant. The following analysis has been worked out based on the exposures as of the date of statements of financial position.

b) Interest rate risk

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in interest rates.

For details of the Company’s short-term and long term loans and borrowings, including interest rate profiles, refer to Note 46 of these financial statements.

Interest rate sensitivity - fixed rate instruments

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

Interest rate sensitivity - variable rate instruments

A reasonably possible change of 100 basis points in interest rates at the reporting date would have increased / decreased equity and profit or loss by amounts shown below. This analysis assumes that all other variables, in particular, foreign currency exchange rates, remain constant. This calculation also assumes that the change occurs at the balance sheet date and has been calculated based on risk exposures outstanding as at that date. The period end balances are not necessarily representative of the average debt outstanding during the period.

Offsetting financial assets and financial liabilities

The following table presents the recognised financial instruments that are offset, or subject to enforceable master netting arrangements and other similar agreements but not offset, as at 31st March 2018, 31st March 2017 and 1st April 2016. The column ‘net amount’ shows the impact on the company’s balance sheet if all set-off rights were exercised.

Note no. 4 Capital Management

The Company’s policy is to maintain a strong capital base so as to maintain investors, creditors and market confidence and to sustain future development of the business.

The Company monitors capital using a ratio of ‘net debt’ to ‘equity’. For this purpose, net debt is defined as total debt, comprising loans and borrowings less cash and cash equivalents and current investments.

The Company’s net debt to equity ratio as at 31st March 2018, 31st March 2017 and 1st April 2016 was as follows.

Note No.5 Earning Per Share (EPS):

Basic EPS and Diluted EPS amounts are calculated by dividing the profit for the year attributable to equity holders of the company by the weighted average number of Equity shares outstanding during the year.

Note No.6

Related Party Disclosures *

(Where transactions have taken place)

I Related Party Relationships

a) Key Management Personnel (KMP)

Shri Anurag P. Poddar - Chairman & Managing Director , Shri Ankit P. Poddar - Executive Director, Shri Shrutisheel Jhanwar -Whole-time Director & CFO and Shri. Ompraksh Singh - Company Secretary.

b) Other Related Parties -(Enterprises-KMP having significant influence/owned by major shareholders) Siyaram Silk Mills Ltd.,

S P Finance & Trading Ltd., Sanchana Trading & Finance Ltd., SPG Power Ltd. , SPG Infrastructure Ltd., Vishal Furnishing Ltd., Wavelink Commercial P Ltd.,MMI Foods

In the financial year 2016-17 an amount of Rs. 252.39 Lakhs was received as surrender of keyman insurance policy from KMP Terms and conditions of transactions with related parties

* All the related party transactions were made on terms equivalent to those that prevail in an arm’s length transactions.

* Parties identified by the Management and relied upon by the auditors.

No amount in respect of related parties have been written off/back or are provided for.

Leases - Finance leases as lessee:

The company has entered into long-term leasing arrangements for land with government authorities which are in the nature of finance lease. These arrangements do not involve any material recurring payments, hence other disclosures are not given.

NOTE NO.7

a) As at 31st March,2018, there are no Micro, Small and Medium Enterprises, as defined in the Micro, Small, Medium Enterprises Development Act, 2006, to whom the Company owes dues on account of principal amount together with interest and accordingly no additional disclosures have been made.

b) The above information regarding Micro, Small and Medium Enterprises has been determined to the extent such parties have been identified on the basis of information available with the Company. This has been relied upon by the auditors.

NOTE NO.8

Employee Benefit obligations

(A) Defined Contribution Plan

The Company has various schemes for long-term benefits such as provident fund and superannuation. In case of funded schemes, the funds are recognised by the Income tax authorities and administered through trustees /appropriate authorities. The Company’s defined contribution plans are superannuation and employees’ pension scheme (under the provisions of the Employees’ Provident Funds and Miscellaneous Provisions Act, 1952) since the Company has no further obligation beyond making the contributions. The liability of the Company on the exempt Provident Fund managed by the trustees is restricted to the interest shortfall if any.

(B) Defined Benefit Plan

In accordance with the provisions of the Payment of Gratuity Act, 1972, the Company has a defined benefit plan which provides for gratuity payments. The plan provides a lump sum gratuity payment to eligible employees at retirement or termination of their employment. The amounts are based on the respective employee’s last drawn salary and the years of employment with the Company. Liabilities in respect of the gratuity plan are determined by an actuarial valuation, based upon which the Company makes annual contributions to the Group Gratuity cum Life Assurance Schemes administered by the LIC of India, a funded defined benefit plan for qualifying employees. Trustees adminster the contributions made by the Company to the gratuity scheme.

The most recent actuarial valuation of the defined benefit obligation along with the fair valuation of the plan assets in relation to the gratuity scheme was carried out as at March 31, 2018. The present value of the defined benefit obligations and the related current service cost and past service cost, were measured using the Projected Unit Credit Method.

Based on the actuarial valuation obtained in this respect, the following table sets out the details of the employee benefit obligation and the plan assets as at balance sheet date:

(vi) Sensitivity analysis

Reasonably possible changes at the reporting date to one of the relevant actuarial assumptions, holding other assumptions constant, would have affected the defined benefit obligation by the amounts shown below.

The above sensitivity analyses have been calculated to show the movement in defined benefit obligation in isolation and assuming there are no other changes in market conditions at the reporting date. In practice, generally it does not occur. When we change one variable, it affects to others. In calculating the sensitivity, project unit credit method at the end of the reporting period has been applied.

Other long-term employee benefits:

Compensated absences are payable to employees at the rate of daily basic salary for each day of accumulated leave partially at the year end and partially on death or on resignation or upon retirement. The charge towards compensated absences for the year ended 31st March, 2018 based on actuarial valuation using the projected accrued benefit method is INR (1.17) lakhs (31st March 2017 : INR 3.58 lakhs).

NOTE NO.9

Previous year’s figures have been regrouped/reclassified wherever necessary to correspond with the current year’s classification/ disclosure.

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Mar 31, 2016

1) As at 31^st March,2016, there are no Micro, Small and Medium Enterprises, as defined in the Micro, Small, Medium Enterprises Development Act, 2006, to whom the Company owes dues on account of principal amount together with interest and accordingly no additional disclosures have been made.

2) The above information regarding Micro, Small and Medium Enterprises has been determined to the extent such parties have been identified on the basis of information available with the Company. This has been relied upon by the auditors.

note No.3

As the Company''s business activity falls within a single segment viz ''Paper and Paper Boards'' and sales being mainly in the domestic market, the disclosure requirements of Accounting Standard -17 "Segment Reporting" are not applicable.

note No.4

The Scheme of arrangement (Scheme) between Balkrishna Industries Ltd (BIL), Balkrishna Paper Mills Ltd (BPML) and Nirvikara Paper Mills Ltd (Company) had been approved by the Hon''ble High Court of Bombay and the order was filed with the Registrar of Companies, Mumbai, on 10^th February, 2015. Pursuant to the scheme, (a) BPML was amalgamated with BIL w.e.f. appointed date, i.e. 1^st April, 2013 and (b) the Paper division was demerged to the Company w.e.f. the effective date, i.e. 10^th February, 2015. Hence the figures for the current year are not comparable with the previous year.

note No.5

In the current year, the Shareholders of the Company has approved the disinvestment of the entire shareholding of its wholly owned subsidiary company viz Balkrishna Synthetics Limited to Siyaram Silk Mills Limited through postal ballot & e-voting. All the compliances have been made. The exceptional item represents profit on sale of the said investment.

6) Figures in brackets in notes 35 and 38 pertain to previous year.

7) Previous year''s figures have been regrouped/reclassified wherever necessary to correspond with the current year''s classification/ disclosure.

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Mar 31, 2015

1.SHARE CAPITAL

(a). Terms/rights attached to equity shares:

All the Equity Shares have equal rights in respect of distribution of dividends and the repayment of capital Shareholder's holding more than 5% Shares in the Company

2. Contingent Liabilities and commitments

(i) Contingent Liabilities Current Year Previous Year a) Claims against the Company not acknowledge as debts

- Disputed claims for excise, cess, sales tax and service tax 47,112,595 -

- Disputed income tax demands 2,056,130 -

- Others 58,748,723 -

b) Guarantees

- Guarantees given by the Company's bankers on behalf of the Company against the Company's 17,597,656 - Indemnity

(ii) Commitments

Estimated amount of contracts remaining to be executed on capital account and not provided for 20,066,723 -

3. Related Party Disclosures *

(Where transactions have taken place)

a) Key Management Personnel (KMP)

Mr. Anurag P. Poddar- Chairman & Managing Director , Mr. Ankit P. Poddar - Executive Director, Mr. Shrutisheel Jhanwar - Whole-time Director & CFO

b) Other Related Parties -(Enterprises having significant influence) Siyaram Silk Mills Ltd., S. P. Finance & Trading Ltd., Sanchana Trading & Finance Ltd., Balkrishna Industries Ltd.

Disclosure in respect of Material Related Party Transaction during the year :

1 Purchase of Goods/ Materials includes : Siyaram Silk Mills Limited Rs. 8,894 (Previous Year Rs.Nil)

2 Reimbursement of Expenses includes: Balkrishna Industries Ltd. Rs. 90,643 (Previous Year Rs. Nil)

3 Rent Paid Includes : Siyaram Silk Mills Ltd. Rs. 3,67,501 (Previous Year Rs. Nil), Balkrishna Industries Ltd Rs. 11,582 (Previous Year Rs. Nil)

4 Remuneration to Key Management Personnel includes : Mr. Anurag P Poddar Rs. 5,86,612 (Previous Year Rs.Nil), Mr. Ankit P Poddar Rs.5,95,366 (Previous Year Rs. Nil), Mr. Shrutisheel Jhanwar Rs. 6,07,060 (Previous Year Rs.Nil)

5 Inter Corporate Loan Received includes : S. P. Finance & Trading Ltd. Rs.10,00,000 (Previous Year Rs. Nil)

6 Inter Corporate Loan Repayment includes :Sanchana Trading & Finance Limited Rs.10,00,000 (Previous Year Rs.Nil)

7 Interest Paid on Loan Received includes : S. P. Finance & Trading Ltd. Rs.17,71,918 (Previous Year Rs. Nil), Sanchana Trading & Finance Limited Rs. 5,699 (Previous Year Rs. Nil)

8 Payables to Other Related Parties includes : S. P. Finance & Trading Ltd. Rs.99,800,000 (Previous Year Rs.Nil)

9 Interest accrued but not due on borrowings includes: S. P. Finance & Trading Ltd. Rs.19,07,966 (Previous Year Rs. Nil), Sanchana Trading & Finance Limited Rs. 8,013 (Previous Year Rs. Nil)

10 Personal Guarantee against Working Capital Term loan given by KMP: Mr Anurag P. Poddar and Mr Ankit P. Poddar for Rs. 25,00,00,000

*Parties identified by the Management and relied upon by the auditors.

No amount in respect of related parties have been written off/back or are provided for during the year.

3. a) As at 31st March,2015, there are no Micro, Small and Medium Enterprises, as defined in the Micro, Small, Medium Enterprises Development Act, 2006, to whom the Company owes dues on account of principal amount together with interest and accordingly no additional disclosures have been made.

b) The above information regarding Micro, Small and Medium Enterprises has been determined to the extent such parties have been identified on the basis of information available with the Company. This has been relied upon by the auditors.

4. a) Defined Contribution Plans

The Company's contribution to defined contribution plans aggregating to Rs. 7,15,555 (Previous Year Rs.Nil) has been recognised in the statement of Profit and Loss under the heading 'Contribution to Provident and Other Funds' (Note No.25)

b) The assumption of future salary increase, considered in actuarial valuation, takes into account of inflation and other relevant factors.

5. As the Company's business activity falls within a single segment viz 'Paper and Paper Boards' and sales being mainly in the domestic market, the disclosure requirements of Accounting Standard -17 "Segment Reporting" are not applicable.

6. a) A scheme of arrangement("Scheme")under section 391 to 394 of the Company's Act 1956 between Balkrishna Industries Limited (BIL), Balkrishna Paper Mills Limited (BPML), Nirvikara Paper Mills Limited (Company), their respective shareholders and creditors was approved by Hon'ble High Court of Judicature at Bombay vide Order dated 19th December 2014

b) BPML, which was engaged in the business of manufacturing of paper board, has been amalgamated with BIL with effect from the Appointed Date, i.e., 1st April 2013 whereby, the assets, liabilities and reserves of BPML has been vested with BIL and have been recorded at their respective book value, under the pooling of interest method of accounting for amalgamation.

c) The Paper Division Undertaking of the Company have been demerged to the Company with effect from the Effective Date, i.e., 10th February 2015, whereby the Company's Share Capital of Rs. 5 lacs stands cancelled and an aggregate of 1,07,39,844 equity shares of Rs. 10 each of the Company were issued to the equity shareholders of BIL in the ratio of 1 equity share of the Company for every 9 equity shares held in BIL.

d) The effect of the Scheme has been considered in these financial statements for the year ended 31st March, 2015 and therefore to that extent, the figures of the current year are not comparable with those of the previous year.

e) The authorised share capital of the Company has been increased to Rs. 11,00,00,000 consisting of 1,10,00,000 Equity Shares of Rs. 10 each.

7. Previous year's figures have been regrouped/reclassified wherever necessary to correspond with the current year's classification/disclosure.