అకౌంట్స్ గమనికలుSubam Papers Ltd.

Mar 31, 2025

2.11 Provisions, Contingent liabilities and Contingent assets

A provision is recognised when the Company has a present obligation as a result of past
event and it is probable that an outflow of resources will be required to settle the obligation,
in respect of which reliable estimate can be made. Provisions (excluding retirement benefits
and compensated absences) are not discounted to its present value and are determined based
on best estimate required to settle the obligation at the balance sheet date. These are
reviewed at each balance sheet date and adjusted to reflect the current best estimates.
Contingent liabilities are not recognised in the financial statements. A contingent asset is
neither recognised nor disclosed in the financial statements.

2.12 Cash and Cash equivalents

The Company considers all highly liquid financial instruments, which are readily
convertible into known amount of cash that are subject to an insignificant risk of change in
value and having original maturities of three months or less from the date of purchase, to be
cash equivalents.

2.13 Events after reporting period

Where events occurring after the Balance Sheet date provide evidence of conditions that
existed at the end of the reporting period, the impact of such events is adjusted within the
financial statements. Otherwise, nature and consequent impact of the events of material size,
occurring after the Balance Sheet date, are only disclosed.

2.14 Employee benefits

All employee benefits payable wholly within twelve months after the end of the annual
reporting period of rendering the service are classified as Short-Term Employee Benefits
and they are recognised in the period in which the employee renders the related service.

The Company recognizes the undiscounted amount of Short-Term Employee Benefits
expected to be paid in exchange for services rendered as a liability (accrued expense) after
deducting any amount already paid.

1. Gratuity is provided for the eligible employees as per the Payment of Gratuity Act 1972
with actuarial valuation. The company does not have any approved super annulation fund to
its employees.

2. The company contributes Provident Fund to the employees under the Employees
Provident Fund Scheme run by the Government.

3. As per the rules and regulations of the company the leave encashment is drawn within the
year itself and no amount need to be provided.

2.15 Earnings per share

Basic earnings per equity share is calculated by dividing the net profit or loss for the period
attributable to equity shareholders by the weighted average number of equity shares
outstanding during the period

Diluted earnings per share is computed by dividing the net profit or loss for the period
attributable to the equity shareholders of the Company and weighted average number of
equity shares considered for deriving basic earnings per equity share and also the weighted
average number of equity shares that could have been issued upon conversion of all dilutive
potential equity shares. In computing dilutive earnings per share, only potential equity
shares that are dilutive and that decrease profit per share are included

1. Working Capital limits availed from the above banks are secured by hypothecation of on entire current assets, i.e.
stock of raw materials, SIP, finished goods and receivables (present & future) of the company and receivables with a
cover period not exceeding 120 days ranking parripassu with one another. Further secured by joint and equitable
mortgage of all immovable properties and by hypothecation of machineries ranking parripassu with one another.

2. The directors of the company namely Mr.T.Balakumarand Mrs.A.Sudha have personally guaranteed the above
credit facilities and have given landed properties situate in various locations as collateral securities towards the
credit facilities availed from Banks.

3. The Company has not defaulted in repayment of loans and interest.

39 Additional statutory information

a) There are no proceedings initiated or are pending against the company for holding any benami property under
the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and rules made thereunder.

b) The Company has not revalued its property, plant and equipment (including the right of use assets) and
intangible assets.

_c) The Company does not have any transactions with companies struck off under section 248 of the Companies
Act, 2013 or section 560 of Companies Act, 1956.

d) The Company has borrowings from banks or financial institutions that are secured against current assets and has
filed required information with the lender on regular basis.

e) The Company has not been declared as a wilful defaulter by any bank or financial institution or other lenders.

f) The Company is in compliance with the number of layers prescribed under clause (87) of section 2 of the Act
read with Companies (Restriction on number of Layers) Rules, 2017 for the year under consideration.

g) There are no Scheme of Arrangements approved by the Competent Authority in terms of sections 230 to 237 of
the Companies Act, 2013 during the year.

h) The company has not advanced or loaned or invested funds (either borrowed funds or share premium or any
other sources or kind of funds) to any other person(s) or entity(ies), including foreign entities (Intermediaries)
with the understanding (whether recorded in writing or otherwise) 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.

The company has also 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.

i) The Company do not have any transaction which are not recorded in the books of accounts that has been
surrendered or disclosed as income in the tax assessments under the Income Tax Act, 1961 during any of the
years.

j) The Company did not trade or invest in Crypto Currency or virtual currency during the financial year. Hence,
disclosures relating to it are not applicable.

k) The Company does not have any charges or satisfaction which is yet to be registered with Registrar of
Companies (ROC) beyond the statutory period

41 Fire Accident Claim

There was a major fire accident in the factory on August 19, 2018 in which substantial quantities of Waste
Paper were totally destroyed. The loss on account of this fire accident is assessed at Rs.17.08 crores. The
insurance company has repudiated the claim on highly unreasonable grounds. The Company has filed an
appeal against the repudiation of claim by the Insurance Company. In the event of appeal coming in favour of
the company, the claim money will be credited to Income in the year of receipt.

42 The Code on Social Security, 2020 ("Code") relating to employee benefits during employment and post
employment benefits received Presidential assent in September 2020. The Code has been published in the
Gazette of India. However, the date on which the Code will come into effect has not been notified. The
Company will assess the impact of the Code when it comes into effect and will record any related impact in
the period the Code becomes effective.

43 Pursuant to amendment in Schedule III to the Companies Act, 2013 by Ministry of Corporate Affairs vide its
notification dated March 24, 2021 the comparative figures as disclosed in these results have been
regrouped/reclassified, wherever necessary, to make them comparable to current year figures.

^{As per our report of} e^{ven date} For and on behalf of the Board of Directors of Subam

/or^CNGSN& ^{Associates LLP} Papers Limited

Chartered Accountants [CIN: U21012TN2004PLC054403]

Firm Registration No. 04915S/S200036

E K

Srivatsan T Balakumar A Sudha

Partner Managing Director Director

Membership No.

225064 DIN: 00440500 DIN: 01515113

Place:

Chennai

Date:26.05.2025

M Jahir Hussain Nagarajan P

Company

Chief Financial Officer Secretary

Place: Tirunelveli

Date:26.05.2025

---

Mar 31, 2024

2.11 Provisions, Contingent liabilities and Contingent assets

A provision is recognised when the Company has a present obligation as a result of past event and it is
probable that an outflow of resources will be required to settle the obligation, in respect of which reliable
estimate can be made. Provisions (excluding retirement benefits and compensated absences) are not
discounted to its present value and are determined based on best estimate required to settle the obligation
at the balance sheet date. These are reviewed at each balance sheet date and adjusted to reflect the current
best estimates. Contingent liabilities are not recognised in the financial statements. A contingent asset is
neither recognised nor disclosed in the financial statements.

2.12 Cash and Cash equivalents

The Company considers all highly liquid financial instruments, which are readily convertible into known
amount of cash that are subject to an insignificant risk of change in value and having original maturities
of three months or less from the date of purchase, to be cash equivalents.

2.13 Events after reporting period

Where events occurring after the Balance Sheet date provide evidence of conditions that existed at the
end of the reporting period, the impact of such events is adjusted within the financial statements.
Otherwise, nature and consequent impact of the events of material size, occurring after the Balance Sheet
date, are only disclosed.

2.14 Employee benefits

-_^ k''U

All employee benefits payable wholly within twelve months after the end of the annual reporting period
of rendering the service are classified as Short-Term Employee Benefits and they are recognised in the
period in which the employee renders the related service.

The Company recognizes the undiscounted amount of Short-Term Employee Benefits expected to be paid
in exchange for services rendered as a liability (accrued expense) after deducting any amount already
paid.

Retirement Benefits

1. Gratuity is provided for the eligible employees as per the Payment of Gratuity Act 1972 with actuarial
valuation. The company does not have any approved super annulation fund to its employees.

2. The company contributes Provident Fund to the employees under the Employees Provident Fund
Scheme run by the Government.

3. As per the rules and regulations of the company the leave encashment is drawn within the year itself
and no amount need to be provided.

2.15 Earnings per share

Basic earnings per equity share is calculated by dividing the net profit or loss for the period attributable
to equity shareholders by the weighted average number of equity shares outstanding during the period.

Diluted earnings per share is computed by dividing the net profit or loss for the period attributable to the
equity shareholders of the Company and weighted average number of equity shares considered for
deriving basic earnings per equity share and also the weighted average number of equity shares that could
have been issued upon conversion of all dilutive potential equity shares. In computing dilutive earnings
per share, only potential equity shares that are dilutive and that decrease profit per share are included.

i. The company has received demand order under GST on 29th April 2024 and the demand created is
for Rs. 740.15 lakhs. The company has filed an appeal against the same challenging the amount of Rs.
724.52 lakhs. The company has made a pre-deposit of Rs. 29.77 lakhs on 21st June 2024.

ii. The Company has received GST Audit observation for the period 01.04.2020 to 3 1.03.2021 and
01.04.2021 to 31.03.2022 on 29th June 2024, which indicates the descripences of Rs. 1491.94 lakhs and
282.61 lakhs respectively. The company is in the process of responding to the GST observation.

38 Additional statutory information

a) There are no proceedings initiated or are pending against the company for holding any benami property under the
Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and rules made thereunder.

b) The Company has not revalued its property, plant and equipment (including the right of use assets) and intangible
assets.

c) The Company does not have any transactions with companies struck off under section 248 of the Companies Act,
2013 or section 560 of Companies Act, 1956.

d) The Company has borrowings from banks or financial institutions that are secured against current assets and has filed
required information with the lender on regular basis.

e) The Company has not been declared as a wilful defaulter by any bank or financial institution or other lenders.

f) The Company is in compliance with the number of layers prescribed under clause (87) of section 2 of the Act read
with Companies (Restriction on number of Layers) Rules, 2017 for the year under consideration.

g) There are no Scheme of Arrangements approved by the Competent Authority in terms of sections 230 to 237 of the
Companies Act, 2013 during the year.

h) The company has not advanced or loaned or invested funds (either borrowed funds or share premium or any other
sources or kind of funds) to any other person(s) or entity(ies), including foreign entities (Intermediaries) with the
understanding (whether recorded in writing or otherwise) 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 ot on behalf of the Ultimate Beneficiaries.

The company has also 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.

i) The Company do not have any transaction which are not recorded in the books of accounts that has been surrendered
or disclosed as income in the tax assessments under the Income Tax Act, 1961 during any of the years.

j) The Company did not trade or invest in Crypto Currency or virtual currency during the financial year. Hence,
disclosures relating to it are not applicable.

k) The Company does not have any charges or satisfaction which is yet to be registered with Registrar of Companies

(ROC) beyond the statutory period. _

40 Fire Accident Claim

There was a major fire accident in the factory on August 19,2018 in which substantial quantities of Waste Paper were
totally destroyed. The loss on account of this fire accident is assessed at Rs. 17.08 crores. The insurance company has
repudiated the claim on highly unreasonable grounds. The Company has filed an appeal against the repudiation of
claim by the Insurance Company. In the event of appeal coming in favour of the company, the claim money will be
credited to Income in the year of receipt.

41 The Code on Social Security, 2020 ("Code") relating to employee benefits during employment and post employment
benefits received Presidential assent in September 2020. The Code has been published in the Gazette of India.
However, the date on which the Code will come into effect has not been notified. The Company will assess the impact
of the Code when it comes into effect and will record any related impact in the period the Code becomes effective.

42 Pursuant to amendment in Schedule in to the Companies Act, 2013 by Ministry of Corporate Affairs vide its
notification dated March 24,2021 the comparative figures as disclosed in these results have been
regrouped/reclassified, wherever necessary, to make them comparable to current year figures.

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

for CNGSN & Associates LLP Limited

Chartered Accountants [CIN: U21012TN2004PLC054403]

Firm Registration No. 04915S/S200036

E-K''Srivatsan ^ Balakumar A Sudha

Partner m CHENNAI Managing Director Director

Membership No. 225064 \Jfo] DIN: 00440500 DIN: 01515113

Place: Chennai p, ^ ‘

Date: &l f cft{ru> QV g,

M Jahir Hussain Nagarajan P

Chief Financial Officer Company Secretary

Place: Tirunelveli
Date: o