Notes to Accounts of JK Paper Ltd.

Mar 31, 2025

(xiii) Provisions and Contingent Liabilities /Assets

Provisions are recognised when the Company has a present obligation (legal or constructive) as a result of a past event, it is
probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable
estimate can be made of the amount of the obligation. The expense relating to a provision is presented in the statement of
profit and loss net of any reimbursement. If the effect of the 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. When discounting is used, the increase in the
provision due to the passage of time is recognised as a finance cost.

Contingent Liability is disclosed after careful evaluation of facts, uncertainties and possibility of reimbursement. Contingent
liabilities are not recognised but are disclosed in notes.

Contingent Assets are not recognised in financial statements but are disclosed, since the former treatment may result in the
recognition of income that may or may not be realised. However, when the realisation of income is virtually certain, then the
related asset is not a contingent asset and its recognition is appropriate.

(xiv) Cash Flow Statement

Cash flows are reported using the indirect method, whereby profit for the period is adjusted for the effects of transactions
of a non-cash nature, any deferrals or accruals of past or future operating cash receipts or payments and item of income or
expenses associated with investing or financing cash flows. The cash flows from operating, investing and financing activities of
the Company are segregated.

(xv) Borrowing Costs

Borrowing costs directly attributable to the acquisition, construction or production of an asset that necessarily takes a substantial
period of time to get ready for its intended use or sale are capitalised as part of the cost of the asset. All other borrowing
costs are expensed in the period in which they occur. Borrowing costs consist of interest and other costs that an entity incurs
in connection with the borrowing of funds. Borrowing cost also includes exchange differences to the extent regarded as an
adjustment to the borrowing costs.

(xvi) Fair Value Measurements

The Company measures financial instruments such as derivatives and certain investments, at fair value at each balance sheet
date.

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market
participants at the measurement date. The fair value measurement is based on the presumption that the transaction to sell the
asset or transfer the liability takes place either:

¦ In the principal market for the asset or liability.

Or

¦ In the absence of a principal market, in the most advantageous market for the asset or liability. The principal or the most
advantageous market must be accessible by the Company.

All assets and liabilities for which fair value is measured or disclosed in the financial statements are categorised within the fair
value hierarchy, described as follows, based on the lowest level input that is significant to the fair value measurement as a whole;

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

¦ Level 2- Valuation techniques for which the lowest level input that is significant to the fair value measurement is directly or
indirectly observable.

¦ Level 3- Valuation techniques for which the lowest level input that is significant to the fair value measurement is
unobservable.

For the purpose of fair value disclosures, the Company has determined classes of assets and liabilities on the basis of the nature,
characteristics and risks of the asset or liability and the level of the fair value hierarchy as explained above.

(xvii) Significant Accounting Judgments, Estimates and Assumptions

In the process of applying the Company''s accounting policies, management has made the following estimates, assumptions and
judgements which have significant effect on the amounts recognized in the financial statement:

a. Income taxes

Judgment of the Management is required for the calculation of provision for income taxes and deferred tax assets and
liabilities. The company reviews at each balance sheet date the carrying amount of deferred tax assets. The factors used
in estimates may differ from actual outcome which could lead to significant adjustment to the amounts reported in the
standalone financial statements.

b. Contingencies

Judgment of the Management is required for estimating the possible outflow of resources, if any, in respect of contingencies/
claim/litigations against the company as it is not possible to predict the outcome of pending matters with accuracy.

c. Allowance for uncollected accounts receivable and advances

Trade receivables do not carry any interest and are stated at their normal value as reduced by appropriate allowances
for estimated irrecoverable amounts. Individual trade receivables are written off when management deems them not
collectible. Impairment is made on ECL, which are the present value of the cash shortfall over the expected life of the
financial assets.

d. Defined Benefit Plans.

The cost of the defined benefit plan and other post-employment benefits and the present value of such obligation are
determined using actuarial valuations. An actuarial valuation involves making various assumptions that may differ from
actual developments in future. These Includes the determination of the discount rate, future salary increases, mortality rates
and attrition rate. Due to the complexities involved in the valuation and its long-term nature, a defined benefit obligation is
highly sensitive to changes in these assumptions. All assumptions are reviewed at each reporting date.

e. Fair Value Measurement of Financial Instruments.

When the fair values of financial assets and financial liabilities recorded in the balance sheet cannot be measured based on
quoted prices in active markets, their fair value is measured using valuation techniques including the Discounted Cash Flow
(DCF) model. The inputs to these models are taken from observable markets where possible, but where this is not feasible,
a degree of judgment is required in establishing fair values. Judgments include considerations of inputs such as liquidity
risk, credit risk and volatility. Changes in assumptions about these factors could affect the reported fair value of financial
instruments.

(b) Equity Shares:

The Equity Shareholders have:-

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

¦ The Company has only one class of Equity Shares having face value of Rs. 10/- each and each shareholder is entitled to one
vote per share.

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

A. NCDs of Rs. 177.55 Crore are secured by means of first pari passu mortgage/charge on the fixed assets of the company. NCDs are
repayable as under:

1. NCDs of Rs. 177.55 Crore is repayable in 7 Half yearly installments from September 2025 to September 2028

B. Term Loans of Rs. 136.22 Crore (FIs - Rs. Nil, Banks Rs. 136.32 Crore) and NCD of Rs. 86.55 Crore is secured by means of first pari
passu mortgage/charge on the Property, Plant & Equipment , both present and future, of Unit JKPM of the company. These Term
Loans are/shall be repayable as under :-

1. Term Loan of Rs. 136.32 Crore is repayable in total 10 quarterly installments from June 2025 to September 2027.

2. NCDs of Rs. 86.55 Crore is repayable in 9 Half yearly installments from May 2025 to May 2029.

C. Term Loans of Rs. 954.64 Crore (FIs - Rs. 180.03 Crore, Banks Rs. 774.61 Crore) is secured by means of first pari passu mortgage/charge
on the fixed assets, both present and future, of Unit CPM of the company. These Term Loans are/shall be repayable as under :-

1. Term Loans aggregating to Rs. 351.02 Crore are repayable in total 67 equal quarterly-installments from April 2025 to March
2032.

2. Term Loans aggregating to Rs. 387.76 Crore are repayable in total 21 equal half-yearly installments from June 2025 to June
2031.

3. Term Loans of Rs. 215.86 Crore are repayable in 26 quarterly installments from June 2025 to September 2031.

D. Secured Term loans from Financial Institutions and Banks have been reduced by Rs. 2.89 Crore (FIs - Rs. 0.91 Crore, Banks Rs 1.98
Crore) and NCDs have been reduced by Rs. 1.06 Crore due to effective rate of interest.

E. Secured Term loans from Financial Institutions and Banks include Rs. 739.94 Crore foreign currency loans. Certain charges are in
the process of satisfaction.

F. Lease Liabilities aggregating to Rs. 71.01 Crore is repayable in total 704 equal monthly installments from April 2025 to September 2041.
G . Public deposits are due for repayment from April 2025 to March 2028.

Nature of CSR activities:

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

Note- Unspent CSR amount of Rs. 3.50 crore for the financial year 2024-25, has been transferred to Unspent Corporate Social
Responsibility Bank account as per the provisions of Section 135 of the Companies Act, 2013. This amount will be spent in succeeding
years on CSR projects/activities of the Company.

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

Act 2013

The company has given loan to Subsidiaries amounting to Rs. 14.50 Crore (Previous year Rs. 33.00 Crore ) and other parties

amounting to Rs. NIL (Previous year Rs. NIL) mentioned above for general business purpose.There are no investment made by

the company other than those stated under Note no 4 and 9 of the financial statements

40 a) The Company had invested Rs. 27.81 Crores in a Jointly Controlled Entity (JCE) which has plantation operations in Myanmar
through its subsidiary in Singapore. Operations at JCE has been impacted due to economic disruptions and Banking
restrictions in Myanmar. Plantation / biological assets are in satisfactory condition. However considering the facts stated
above, as a matter of prudence the Company had made provision of Rs. 11.10 Crores against its investment in subsidiary of
Rs. 22.59 Crores.

b) Sales include export incentives of Rs. 9.40 Crore (Previous year Rs. 7.94 Crore).

c) Interest Income includes Rs. 0.52 Crore (Previous year Rs 0.59 Crore) on Deposits with Banks and Rs. 48.41 Crore (Previous
year Rs. 53.93 Crore) on others.

d) Scrap sale of Rs. 21.84 Crore (Previous year Rs. 28.37 Crore) has been netted off from Consumption of Stores and Spares.

e) The Company has used an accounting software for maintaining its books of accounts during the year ended March 31,2025,
which has a feature of recording audit trail (edit log) facility and has operated throughout the year except (a) the audit trail
feature was not enabled for certain relevant tables at the application level and (b) change log is not enabled for certain
information during the year.The audit trail has been preserved by the company as per the statutory requirements for record
retention.

f) The Board of Directors has recommended a final Dividend of Rs. 5 /- per share (50%), on the Equity Share Capital for the
financial year ended 31^st March, 2025.

Note 45 :

Miscellaneous expenses include contribution of Rs. 13.00 crore made to a political party under section 182 of the Companies Act,
2013.

Note 46 :

The Board of Directors of the Company at its meeting held on 13^th December 2024, have approved a Composite Scheme of
Arrangement under Sections 230 to 232 (read with Section 66 and other applicable provisions) of the Companies Act, 2013 between
the Company (Transferee Company), its subsidiaries namely JKPL Utility Packaging Solutions Private Limited (Formerly Manipal
Utility Packaging Solutions Private Limited), Securipax Packaging Private Limited, Horizon Packs Private Limited, Enviro Tech Ventures
Limited (Transferor/Demerged Companies) and Resulting Company namely PSV Agro Products Private Limited and their respective
shareholders (the ''Scheme'').The aforementioned Scheme having appointed dates of 1^st April 2024 and 1^st April 2025, as further
detailed in the Scheme, is subject to required regulatory and other necessary approvals. Pending necessary approvals, the effect of
the Scheme has not been given in these Financial Statements.

NOTE 49: (Contd.)

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

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

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

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

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

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

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

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

(i) Directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of
the funding party (ultimate beneficiaries) or

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

f) The Company has filed quarterly returns or statements with the banks in lieu of the sanctioned working capital facilities,
which are normally in agreement with the books of account other than those as set out below.

* The above differences represents balance of creditors as at each reporting date.

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

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

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

NOTE 50 : EMPLOYEE BENEFITS

The Company participates in defined contribution and benefit schemes, the assets of which are held (where funded) in separately
administered funds. For defined contribution schemes the amount charged to the statements of profit or loss is the total of
contributions payable in the year.

a) Defined Contribution Plans:-

Amount recognized as an expense and included in Note 32 Item "Contribution to Provident and Other Funds Rs. 0.71 Crore
(Previous year Rs. 0.44 Crore) for Superannuation Fund.

b) Other long-term benefits

Amount recognized as an expense and included in Note 32 Item "Salaries, Wages, Allowances etc. Rs. 5.23 Crore (Previous year
Rs. 6.73 Crore) for long term compensated Absences.

c) Defined benefits plans

(i) Amount recognized as an expense and included in Note 32 & Note 44 "Contribution to Provident and Other Funds" Rs. 12.39
Crore (Previous year Rs. 12.12 Crore) for Provident and other fund.

(ii) Gratuity Expense Rs. 4.08 Crore (Previous year Rs. 3.77 Crore) has been recognized in "Contribution to Provident and Other
Funds" under Note 32. as per Actuarial Valuation

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

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

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

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

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

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

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

Fair value hierarchy

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

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

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

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

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

i. Credit Risk

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

ii. Market risk

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

a. Foreign Currency Risk and sensitivity

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

b. Interest Rate Risk and Sensitivity

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

c. Commodity price risk and sensitivity

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

CREDIT RISK

Credit risk refers to the risk of default on its obligation by the counterparty resulting in a financial loss. The maximum exposure
to the credit risk at the reporting date is primarily from trade receivables amounting to Rs. 187.69 Crore and Rs. 167.68 Crore
as of March 31, 2025 and March 31, 2024, respectively. Trade receivables are typically unsecured and are derived from
revenue earned from customers primarily located in India. Credit risk has always been managed by the company through
credit approvals, establishing credit limits and continuously monitoring the creditworthiness of customers to which the
Company grants credit terms in the normal course of business. On account of adoption of Ind AS 109, the company uses
expected credit loss model to assess the impairment loss or gain. The Company uses a provision matrix to compute the
expected credit loss allowance for trade receivables. The provision matrix takes into account as per the Company''s historical
experience for customers.

Liquidity risk

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

*Net of Receivables USD 7.42 Million - Rs. 63.54 Crores (Previous year USD 6.04 Million - Rs. 50.37 Crores), EUR 0.31 Million - Rs. 2.90
Crores (Previous year EUR 0.13 Million - Rs. 1.18 Crores) and AED NIL (Previous year AED 0.12 Million - Rs 0.27 Crore).

Interest Rate Swaps

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

NOTE 55 : ACQUISITION OF CONTROLLING STAKE IN SUBSIDIARIES

i) The Board of Directors at its meeting held on 13^th December 2024 had approved acquisition of 60% stake in Radhesham
Wellpack Private Limited (RWPL) by way of entering into a Share Purchase and Shareholders'' Agreement (SPSHA). Acquisition
was completed on 3^rd February 2025 pursuant to which RWPL became subsidiary of the Company. The impact of Business
Combination has been given in the Consolidated financials of the Company as per IND AS 103.

ii) The Board of Directors at its meeting held on 29^th January 2025 had approved acquisition of 65% stake in Quadragen Vethealth
Private Limited (QVPL) by way of entering into a Share Purchase and Shareholders'' Agreement (SPSHA). Acquisition of 62.14 %
equity share was completed on 25^th March 2025 pursuant to which QVPL became subsidiary of the Company. The impact of
Business Combination has been given in the Consolidated financials of the Company as per IND AS 103.

NOTE 57 : IMPAIRMENT REVIEW

During the year, assets (including goodwill) are tested for impairment whenever there are any internal or external indicators of
impairment.The testing did not result in any impairment in the carrying amount of goodwill and other assets.

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

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

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

NOTE 58 information related to consolidated financials

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

NOTE 60 : Segment information
Information about primary segment

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

NOTE 61 :

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

NOTE 62 :

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

The accompanying notes referred to above form an integral part of the Standalone Financial Statements
As per our report of even date attached For and on behalf of the Board of Directors

for LODHA & CO LLP Harsh Pati Singhania

Chartered Accountants (DIN: 00086742) Vinita Singhania (DIN: 00042983)

Firm''s Registration Number 301051E/E300284 Chairman & Managing Director Sushil Kumar Roongta (DIN: 00309302)

Anoop Seth (DIN: 00239653)

Deepa Gopalan Wadhwa (DIN: 07862942)

(Shyamal Kumar) A.S.Mehta Rajya Vardhan Kanoria (DIN: 00003792)

Partner (DIN: 00030694) Sandip Somany (DIN: 00053597)

Membership No. 509325 President & Director Directors

New Delhi, the 19^th May, 2025

KR Veerappan Pradeep Joshi

Chief Finance Officer Company Secretary

---

Mar 31, 2024

(b) Equity Shares:

The Equity Shareholders have:-

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

NOTE 36 : CONTINGENT LIABILITIES & COMMITMENTS (TO THE EXTENT NOT PROVIDED FOR) H in Crore (10 Million)
Particulars	Year ended March 31, 2024	Year ended March 31, 2023
Contingent Liabilities:
a) Claim against the company not acknowledged as debts #
Excise duty/ Custom duty/Service tax/GST liability in respect of matter in appeals	11.75	12.95
Sales tax/ VAT/Octroi liability in respect of matter in appeals	1.28	1.28
Other matters	10.62	8.83
b) Commitments:
Contracts remaining to be executed on capital account (Net of Advances)	61.57	72.51

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

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

Nature of CSR activities:

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

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

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

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

NOTE 40 :

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

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

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

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

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

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

A. LEASES

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

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

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

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

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

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

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

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

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

the company (ultimate beneficiaries) or

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

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

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

the funding party (ultimate beneficiaries) or

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

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

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

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

NOTE 50 : EMPLOYEE BENEFITS

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

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

contributions payable in the year.

a) Defined Contribution Plans:-

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

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

b) Other long-term benefits

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

H4.57 Crore) for long term compensated Absences.

c) Defined benefits plans

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

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

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

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

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

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

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

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

Fair value hierarchy

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

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

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

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

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

i. Credit Risk

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

ii. Market risk

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

a.) Foreign Currency Risk and sensitivity

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

Foreign Currency Sensitivity

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

b. Interest Rate Risk and Sensitivity

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

c. Commodity price risk and sensitivity

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

CREDIT RISK

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

Liquidity risk

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

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

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

* Debt consists of Borrowings and Lease Liabilities

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

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

Reason for Variance:

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

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

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

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

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

NOTE 57 : IMPAIRMENT REVIEW

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

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

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

NOTE 58 : INFORMATION RELATED TO CONSOLIDATED FINANCIALS

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

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

NOTE 60 : SEGMENT INFORMATION Information about primary segment

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

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

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

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Mar 31, 2023

Equity Shares:

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

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

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

B. Term Loans of H272.34 Crore (FIs - HNil, Banks H272.34 Crore) and NCD of H125 Crore is secured by means of first pari passu mortgage/ charge on the Property, Plant & Equipment , both present and future, of Unit JKPM of the company. These Term Loans are/shall be repayable as under :-

1 Term Loan of H22.34 Crore is repayable in 1 half-yearly instalment in August 2023.

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

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

C. Term Loans of H1453.48 Crore (FIs - H371.98 Crore, Banks H1081.50 Crore) is secured by means of first pari passu mortgage/charge on the fixed assets, both present and future, of Unit CPM of the company. These Term Loans are/shall be repayable as under :-

1 Term Loans aggregating to H506.38 Crore are repayable in total 105 equal Quarterly-instalments from June 2023 to March 2032.

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

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

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

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

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

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

NOTE 36 CONTINGENT LIABILITIES & COMMITMENTS (TO THE EXTENT NOT PROVIDED FOR) (Contd.) H in Crore (10 Million)
Particulars	Year ended March 31,2023	Year ended March 31,2022
b) Commitments:
Contracts remaining to be executed on capital account (Net of Advances)	72.51	50.71
Export commitments against import of capital goods under EPCG scheme	-	382.13

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

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

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

The company has given loan to Subsidiaries amounting to H34.50 Crore (Previous year H45.75 Crore ) and other parties amounting

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

NOTE 40

a) The Company had invested H26.72 Crores in a Jointly Controlled Entity (JCE) which has plantation operations in Myanmar through its subsidiary in Singapore. Operations at JCE has been impacted due to economic disruptions and Banking restrictions in Myanmar. Plantation / biological assets are in satisfactory condition. However considering the facts stated above, as a matter of prudence the Company has made provision of H11.10 Crores against its investment in subsidiary of H22.37 Crores.

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

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

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

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

NOTE 41 A. LEASES

The Company has adopted Ind AS 116 "Leases" effective 1^st April ,2019 as notified by the Ministry of Corporate Affairs ( MCA)

and applied the Standard to its leases using the simplified approach. This has resulted in recognising right - of - use assets and

corresponding lease liabilities.

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

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

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

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

company (ultimate beneficiaries) or

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

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

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

funding party (ultimate beneficiaries) or

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

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

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

NOTE 50 EMPLOYEE BENEFITS

The Company participates in defined contribution and benefit schemes, the assets of which are held (where funded) in separately administered funds. For defined contribution schemes the amount charged to the statements of profit or loss is the total of contributions payable in the year.

a) Defined Contribution Plans:-

Amount recognized as an expense and included in Note 32 Item "Contribution to Provident and Other Funds H0.70 Crore (Previous year H0.91 Crore) for Superannuation Fund.

b) Other long-term benefits

Amount recognized as an expense and included in Note 32 Item "Salaries, Wages, Allowances etc. H4.57 Crore (Previous year H1.38 Crore) for long term compensated Absences.

c) Defined benefits plans

(i) Amount recognized as an expense and included in Note 32 & Note 44 "Contribution to Provident and Other Funds" H10.74 Crore (Previous year H11.20 Crore) for Provident and other fund.

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

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

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

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

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

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

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

Fair value hierarchy

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

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

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

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

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

i. Credit Risk

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

ii. Market risk

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

a.) Foreign Currency Risk and sensitivity

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

Interest Rate Risk and Sensitivity

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

c. Commodity price risk and sensitivity

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

CREDIT RISK

Credit risk refers to the risk of default on its obligation by the counterparty resulting in a financial loss. The maximum exposure to the credit risk at the reporting date is primarily from trade receivables amounting to H 163.13 Crore and H217.19 Crore as of March 31,2023 and March 31,2022, respectively. Trade receivables are typically unsecured and are derived from revenue earned from customers primarily located in India. Credit risk has always been managed by the company through credit approvals, establishing credit limits and continuously monitoring the creditworthiness of customers to which the Company grants credit terms in the normal course of business. On account of adoption of Ind AS 109, the company uses expected credit loss model to assess the impairment loss or gain. The Company uses a provision matrix to compute the expected credit loss allowance for trade receivables. The provision matrix takes into account as per the Company''s historical experience for customers.

Liquidity risk

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

532 Competition and Price risk

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

NOTE 54 DERIVATIVE FINANCIAL INSTRUMENTS

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

Interest Rate Swaps

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

NOTE 55 ACQUISITION OF CONTROLLING STAKE IN SUBSIDIARIES

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

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

Reason for Variance:

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

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

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

NOTE 57 IMPAIRMENT REVIEW

Assets are tested for impairment whenever there are any internal or external indicators of impairment. Impairment test is performed at the level of each Cash Generating Unit (''CGU'') or groups of CGUs within the Company at which the assets are monitored for internal management purposes, within an operating segment. The impairment assessment is based on higher of value in use and value from sale calculations. During the year, impairment charges H22.56 crore in respect of property,plant and equipment has been provided (refer note no.46). The measurement of the cash generating units'' value in use is determined based on financial plans that have been used by management for internal purposes. The planning horizon reflects the assumptions for short to- mid-term market conditions.

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

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

NOTE 58 INFORMATION RELATED TO CONSOLIDATED FINANCIALS

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

NOTE 60 SEGMENT INFORMATION

Information about primary segment

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

NOTE 61

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

NOTE 62

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

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Mar 31, 2022

(b) Equity Shares:

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

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

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

A. Term Loans of H172.76 Crore (FIs - H Nil, Banks H172.76 Crore) and NCD of H314.89 Crore are secured by means of first pari passu mortgage/charge on the Property, Plant & Equipment of the company . Out of the above Term Loan, H92.13 Crore (FIs - H Nil, Banks H92.13 Crore) are further secured by second charge on the current assets of the Company. These Term Loans are/shall be repayable as under :-

1 Term Loans aggregating to H172.76 Crore are repayable in total 28 quarterly instalments from June 2022 to March 2024.

2 NCDs of H314.89 Crore is repayable in 13 Half yearly instalments from September 2022 to July 2028.

B. Term Loans of H352.45 Crore (FIs - H Nil, Banks H352.45 Crore) and NCD of H125 Crore is secured by means of first pari passu mortgage/charge on the Property, Plant & Equipment , both present and future, of Unit JKPM of the company. These Term Loans are/shall be repayable as under :-

1 Term Loans aggregating to H63.31 Crore are repayable in total 3 equal half-yearly instalments from August 2022 to August 2023.

2 Term Loans aggregating to H289.13 Crore are repayable in total 23 quarterly installments from May 2022 to September 2027.

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

C. Term Loans of H1433.78 Crore (FIs - H285.48, Banks H1148.30 Crore) is secured by means of first pari passu mortgage/charge on the Property, Plant & Equipment , both present and future, of Unit CPM of the company. These Term Loans are/shall be repayable as under :-

1 Term Loans aggregating to H520 Crore are repayable in total 108 equal quarterly-instalments from December 2022 to March 2032.

2 Term Loans aggregating to H613.78 Crore are repayable in total 37 equal half-yearly instalments from December 2022 to January 2032.

3 Term Loans aggregating to H300 Crore are repayable in total 36 quarterly instalments from December 2022 to September 2031.

D. Term Loans of H1.66 Crore (FIs - Nil, Banks H1.66 Crore) is secured by means of first pari passu mortgage/charge on the Property, Plant & Equipment , both present and future, of DELOPT Division of the company. These Term Loans are/shall be repayable as under:-

1 Term Loans aggregating to H1.66 Crore are repayable in total 38 equal monthly-instalments from April 2022 to July 2035.

E. Term Loans aggregating to H 0.34 Crore (FIs - H Nil, Banks H 0.34 Crore) are secured by specific charge on the Vehicle hypothecated against these loans. These Term Loans are repayable in total 9 monthly instalments from April 2022 to December 2022.

F. Secured Term loans from Financial Institutions and Banks have been reduced by H7.78 Crore (FIs - H1.13 Crore, Banks H 6.65 Crore) and NCDs have been reduced by H2.00 Crore due to effective rate of interest.

G. Certain charges are pending for satisfaction due to non receipt of No Dues Certificate (NDC) pertaining to Loan from Financial Institution, which is fully paid.

H. Secured Term loans from Financial Institutions and Banks include H677.10 Crore foreign currency loans.

I . Lease Liabilities aggregating to H69.94 Crore is repayable in total 502 equal monthly installments from April 2022 to September 2041.

NOTE 37. UNCERTAINTIES RELATING TO COVID-19 :

The Company has considered external and internal information available up to the date of approving the Financial Statements for assessing possible impact of Covid-19 on various components of its financial statement, including recoverability of its assets. The impact of any future events & developments, if any, emerging out of the pandemic occurring after the approval of financial statement for the year will be recognized prospectively.

Nature of CSR activities:

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

Reason for shortfall:

CSR amount could not be spent in view of unforeseen disruptions on account of COVID-19 pandemic for the financial year 2021-22 and financial year 2020-21.

Note - CSR amount of H1.57 crore related to ongoing projects as on March 31,2022 (Previous year H1.05 Crore) has been transferred to Unspent Corporate Social Responsibility Bank account within 30 days as per the provisions of Section 135 of the Companies Act, 2013. This amount will be spent in succeeding years on CSR projects/activities of the Company.

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

The company has given loan to Subsidiaries amounting to H45.75 Crore (Previous year H160 Crore ) and other parties amounting to H15 Crore (Previous year H Nil ) mentioned above for general business purpose. The Company has also given a Letter of Comfort to the Bank for a long term loan taken by its step-down subsidiary " The Sirpur Paper Mills Ltd." for H409.68 Crore (Previous Year H431.50 Crore).

NOTE 40.

a) The Company had invested H24.64 Crores in a Jointly Controlled Entity (JCE) which has plantation operations in Myanmar through its subsidiary in Singapore. Operations at JCE has been impacted due to economic disruptions and Banking restrictions in Myanmar. Plantation / biological assets are in satisfactory condition. However considering the facts stated above, as a matter of prudence the Company has made provision of H11.10 Crores against its investment in subsidiary of H22.21 Crores.

b) Sales include export incentives of H 10.44 Crore (Previous year H8.66 Crore).

c) Interest Income includes H2.10 Crore (Previous year H 1.01 Crore) on Deposits with Banks and H51.51 Crore (Previous year H47.88 Crore) on others.

d) Scrap sale of H14.85 Crore (Previous year H6.76 Crore) has been netted off from Consumption of Stores and Spares.

NOTE 41.

A. LEASES

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

NOTE 46.

During the last Financial Year 2020-21, Company bought back 88,41,241 equity shares at an average buyback price of H94.35 per equity share and utilized H83.41 crore for the Buy Back (excluding transaction costs) and H13.04 crore for buyback tax & other transaction costs, of which H87.61 crore drawn from the Securities Premium Reserve. In accordance with Section 69 of the Companies Act, 2013, the Company created capital redemption reserve of H8.84 crore equal to the face value of equity shares bought back as appropriation from General Reserves.

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

d) 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:

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

company (ultimate beneficiaries) or

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

e) The Company 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 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.

* The above differences represents balance of creditors as at each reporting date.

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

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

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

The Company participates in defined contribution and benefit schemes, the assets of which are held (where funded) in separately administered funds. For defined contribution schemes the amount charged to the statements of profit or loss is the total of contributions payable in the year.

a) Defined Contribution Plans:-

Amount recognized as an expense and included in Note 31 Item "Contribution to Provident and Other Funds H0.91 Crore (Previous year H0.68 Crore) for Superannuation Fund.

b) Other Long Term Benefits

Amount recognized as an expense and included in Note 31 Item "Salaries, Wages, Allowances etc. H1.38 Crore (Previous year H3.74 Crore) for long term compensated Absences.

c) Defined Benefits Plans

(i) Amount recognized as an expense and included in Note 31 & Note 44 "Contribution to Provident and Other Funds" H11.20 Crore (Previous year H9.01 Crore) for Provident and other fund.

The fair value of financial assets and liabilities are included at the amount at which the instrument could be exchanged in a current transaction between willing parties, other than in a forced or liquidation sale.

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

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

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

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

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

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

F The Management has obtained independent valuer''s report for Financial Liability against Letter Of Comfort (LOC) issued by the Company for borrowing facility extended to a step-down subsidiary by the Bank. The fair valuation of LOC is based on the best evidence of fair value determined by the valuer which valued the Letter of Comfort by applying Black Scholes Put Option Model using the inputs (including business projections , cash flows, terminal value etc ) provided by the management of the Company and used applicable discount rate ( as adjusted for risk) in arriving at the expected value of LOC.

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

Fair value hierarchy

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

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

or indirectly (i.e. derived from prices).

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

NOTE 53. FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES

53.1 Financial Risk Factors

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

i. Credit Risk

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

ii. Market Risk

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

a. Foreign Currency Risk and Sensitivity

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

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

b. Interest Rate Risk and Sensitivity

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

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

CREDIT RISK

Credit risk refers to the risk of default on its obligation by the counterparty resulting in a financial loss. The maximum exposure to the credit risk at the reporting date is primarily from trade receivables amounting to H217.19 Crore and H79.17 Crore as of March 31, 2022 and March 31, 2021, respectively. Trade receivables are typically unsecured and are derived from revenue earned from customers primarily located in India. Credit risk has always been managed by the company through credit approvals, establishing credit limits and continuously monitoring the creditworthiness of customers to which the Company grants credit terms in the normal course of business. On account of adoption of Ind AS 109, the company uses expected credit loss model to assess the impairment loss or gain. The Company uses a provision matrix to compute the expected credit loss allowance for trade receivables. The provision matrix takes into account as per the Company''s historical experience for customers.

Liquidity risk

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

53.2 Competition and Price risk

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

NOTE 54. DERIVATIVE FINANCIAL INSTRUMENTS

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

55 Acquisition of Business on Slump Sale Basis

a) The Board of Directors at its meeting held on 30^th July 2021 had approved acquisition of Embedded Systems and Electro-optics Division of Deepti Electronics & Electro Optics Private Limited, as a going concern on slump sale under a Business Transfer Agreement (BTA), payable in cash. BTA was signed on 8^th September 2021 with the deemed date of transfer as 1^st April 2021. Company has completed the acquisition of the business on March 31,2022 and relevant impact has been given in the books of accounts as per IND As 103.

NOTE 57. IMPAIRMENT REVIEW

Assets are tested for impairment whenever there are any internal or external indicators of impairment. Impairment test is performed at the level of each Cash Generating Unit (''CGU'') or groups of CGUs within the Company at which the assets are monitored for internal management purposes, within an operating segment. The impairment assessment is based on higher of value in use and value from sale calculations. During the year, the testing did not result in any impairment in the carrying amount of other assets. The measurement of the cash generating units'' value in use is determined based on financial plans that have been used by management for internal purposes. The planning horizon reflects the assumptions for short to- mid-term market conditions.

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

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

NOTE 60. SEGMENT INFORMATION

Information about primary segment

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

NOTE 61.

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

NOTE 62.

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

---

Mar 31, 2018

I. The Company Overview

JK Paper Ltd, a Public Limited Company listed on the National Stock Exchange of India Ltd and the Bombay Stock Exchange Limited. The registered office of the Company is situated at Fort Songadh , Dist- Tapi- 394660, Gujarat. The Company is India’s largest producer of branded papers and a leading player in Coated Papers and High-end Packaging Boards. The Company has two integrated Pulp and Paper Plants at Strategic Locations Unit JKPM in East (Rayagada, Odisha) and Unit CPM in West (Songadh, Gujarat). The Company has expanded its capacity multifold over the years and has been able to bring in state of the art technology as well. It is the 1st Indian paper company to introduce Colorlok Technology in its complete range of Copier papers in India,1st Indian paper company to get TPM certification from JIPM, Japan; 3rd Paper Company in the World and also 1st Paper Mill in India to get ISO 9001,ISQ 14001 and OHSAS 18000.

These financial statements were approved and adopted by the Board of Directors of the Company in their meeting held on May 14, 2018.

II. Basis of Preparation of Financial Statements

(i) Statement of Compliance :

The Financial Statements have been prepared in accordance with Indian Accounting Standards (IND AS) as prescribed under Section 133 of the Companies Act, 2013 read with Companies (Indian Accounting Standards) Rules, 2015 and Companies (Indian Accounting Standards) (Amendment) Rules, 2016 and relevant provisions of the Companies Act, 2013.

(ii) Basis of Preparation:

The separate financial statements of the Company have been prepared in accordance with Indian Accounting Standards (Ind AS) notified under the Companies (India Accounting Standards) Rules, 2015 and Companies (Indian Accounting Standard) (Amendment) Rules, 2016. The Company has prepared these financial statements to comply in all material respects with the accounting standards notified under Section 133 of the Companies Act 2013 (“the Act”).

The financial statements have been prepared on an accrual basis and under the historical cost basis.

Accounting policies have been consistently applied except where a newly issued accounting standard is initially adopted or a revision to an existing accounting standard requires a change in the accounting policy hitherto in use. The financial statements are presented in INR and all values are rounded to the nearest INR Crore (10 Million), except when otherwise indicated.

(iii) Use of Estimates

The preparation of financial statements in conformity with Ind AS requires the management to make judgments, estimates and assumptions that affect the reported amounts of revenues, expenses, assets and liabilities and the disclosure of contingent liabilities, at the end of the reporting period. Although these estimates are based upon management’s best knowledge of current events and actions, uncertainty about these assumptions and estimates could result in the outcomes requiring a material adjustment to the carrying amounts of assets or liabilities in future periods.

Appropriate changes in estimates are made as management becomes aware of changes in circumstances surrounding the estimates. Changes in estimates are reflected in the financial statements in the period in which changes are made and, if material, their effects are disclosed in the notes to the financial statements.

(iv) Classification of Assets and Liabilities as Current and Non Current

All Assets and Liabilities have been classified as current or non-current as per the Company’s normal operating cycle and other criteria set out in the Schedule III to the Companies Act, 2013. Based on the nature of product & activities of the Company and their realisation in cash and cash equivalent, the Company has determined its operating cycle as twelve months for the purpose of current and non-current classification of assets and liabilities. Deferred tax assets and liabilities are classified as non-current assets and liabilities.

Notes:

a) Includes cost of 4.67 acres land given on lease to Employees State Insurance Corporation for construction of Hospital for Employees and cost of 34.72 acres land of RS.20.24 Crore for which title is yet to be transferred in name of the Company.

b) During the year RS.25.92 Crore has been added in Plant & Equipment due to Foreign Exchange Fluctuation (Net) (Previous year RS.37.35 Crore was deducted) .

A. Term Loans of RS.433.46 Crore (FIs - RS.27.28 Crore, Banks RS.406.18 Crore) are secured by means of first pari passu mortgage/charge on the fixed assets of the company . Out of the above Term Loan, RS.195.89 Crore (FIs - RS.27.28 Crore, Banks RS.168.61 Crore) are further secured by second charge on the current assets of the Company. These Term Loans are/shall repayable as under :-

1 Term Loans of RS.2.17 Crore is repayable in June 2018.

2 Term Loans aggregating to RS.431.29 Crore are repayable in total 191 quarterly instalments from June 2018 to October 2024.

B. Term Loans of RS.758.51 Crore (FIs - RS.152.00, Banks RS.606.51 Crore) is secured by means of first pari passu mortgage/charge on the fixed assets, both present and future, of Unit JKPM of the company. These Term Loans are/shall repayable as under :-

1 Term Loans aggregating to RS.298.80 Crore are repayable in total 61 equal Quarterly-instalments from June 2018 to September 2027.

2 Term Loans aggregating to RS.313.96 Crore are repayable in total 34 equal half-yearly instalments from May 2018 to August 2023.

3 Term Loans aggregating to RS.145.75 Crore are repayable in total 40 quaterly instalmenst from May 2018 to May 2022.

C. Term Loans aggregating to RS.1.91 Crore (FIs - H Nil, Banks RS.1.91) are secured by specific charge on the Vehicle hypothicated against these loans. These Term Loans are repayable in total 57 monthly instalments from April 2018 to December 2022.

D. Secured Term loans from Financial Institutions and Banks have been reduced by RS.14.57 Crore (FIs - RS.0.63 Crore, Banks RS.13.94 Crore) due to effective rate of interest.

E. Certain charges are in the process of satisfaction. Secured Term loans from Financial Institutions and Banks include RS.378.53 Crore foreign currency loans.

F. FCCB’s of EURO 2.40 Million @ 6.455% issued on 30th May, 2011 are convertible into equity shares of the company at an initial conversion price of RS.65 per share, subject to price adjustment as per agreement, after 3 years and 6 months from the date of issue. The Company has received a request from the FCCB Holder on 4th May, 2018 for conversion of their FCCB’s (series-5) into equity shares and the company has allotted the equity shares on 8th May 2018. The amount of FCCB has been reduced by RS.0.02 Crore due to effective rate of interest.

G. Term Loan of RS.7.50 Crore from related party is repayable in 47 monthly installment from June 2018 to April 2022. The amount of Loan from related party has been reduced by RS.0.05 Crore due to effective rate of interest.

H. Public Deposits are due for repayment in 2018-19, 2019-20 & 2020-21.

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

NOTE 2.

In respect of levy of Octroi pertaining to Unit - CPM by Songadh Group Gram Panchayat, the Company has paid RS.1.25 Crore till March 31, 1997 under protest and also created a liability of the similar amount. As the matter is still pending in the court of law, the necessary adjustment, if any, would be made after its disposal.

NOTE 3. EXPENDITURE INCURRED ON CORPORATE SOCIAL RESPONSIBILITIES

Details of expenditure on Corporate Social Responsibility Activities as per Section 135 of Companies Act , 2013 read with schedule III are as below:

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

The company has given loan to Subsidiaries and other parties mentioned above in the ordinary course of business for general business purpose.

NOTE 4. Advances recoverable shown under “Other Current Assets” in Note No.15 ,includes H NIL ( Previous Year RS.4.27 Crore) payments made for various development projects being undertaken by the Company.

NOTE 5.

a) Sales include export incentives of RS.11.08 Crore (Previous year RS.9.29 Crore).

b) Interest Income includes RS.1.41 Crore (Previous year RS.0.98 Crore) on Deposits with Banks, RS.0.05 Crore (Previous year RS.0.28 Crore) on Income Tax refund and RS.8.85 Crore (Previous year RS.9.80 Crore) on others.

c) Scrap sale of RS.8.87 Crore (Previous year RS.7.34 Crore) has been netted off from Consumption of Stores and Spares.

NOTE 6. LEASES

a) The Company has taken office spaces on operating lease basis. The operating lease arrangements, are renewable on a periodic basis and for most of the leases extend up to a maximum of 7 years from their respective dates of inception and relates to rented premises. Some of these lease agreements have price escalation clauses.

Obligations on long-term, non-cancellable operating leases:

The lease rentals charged during the year is as under:

NOTE 7.

a) During the year, the Company has allotted 1,95,41,985 Equity Shares of RS.10/- each upon conversion of FCCBs Series-3 & 4 of Euro 6.5 million each and FCCBs Series 5 of Euro 4.1 million.

b) The Company has allotted 27,42,735 Equity Shares of RS.10/- each upon conversion of FCCBs (Series 5) of Euro 2.40 million, after the financial year ended March 31, 2018.

NOTE 8. THE MICRO, SMALL AND MEDIUM ENTERPRISES DEVELOPMENT (MSMED) ACT, 2006

Based on the information available, there are certain vendors who have confirmed that they are covered under the Micro, Small and Medium Enterprises Development Act, 2006. Disclosures relating to dues of Micro and Small entrprises under section 22 of ‘The Micro, Small and Medium Enterprises Development Act, 2006, are given below:

NOTE 9. EMPLOYEE BENEFITS

The Company participates in defined contribution and benefit schemes, the assets of which are held (where funded) in separately administered funds. For defined contribution schemes the amount charged to the statements of profit or loss is the total of contributions payable in the year.

a) Defined Contribution Plans

Amount recognized as an expense and included in Note 31 Item “Contribution to Provident and Other Funds RS.0.60 Crore (Previous year RS.0.67 Crore) for Superannuation Fund.

b) Other long-term benefits

Amount recognized as an expense and included in Note 31 Item “Salaries, Wages, Allowances etc. RS.3.21 Crore (Previous year RS.3.72 Crore) for long term compensated Absences.

c) Defined benefits plans

(i) Amount recognized as an expense and included in Note 31 & Note 44 “Contribution to Provident and Other Funds” RS.9.10 Crore (Previous year RS.8.25 Crore) for Provident and other fund.

(ii) Gratuity Expense RS.2.73 Crore (Previous year RS.2.03 Crore) has been recognized in “Contribution to Provident and Other Funds” under Note 31 as per Actuarial Valuation.

The fair value of financial assets and liabilities are included at the amount at which the instrument could be exchanged in a current transaction between willing parties, other than in a forced or liquidation sale.

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

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

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

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

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

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

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

Fair value hierarchy

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

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

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

10.1 Financial risk factors

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

i. Credit Risk

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

ii. Market risk

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

a.) Foreign Currency Risk and sensitivity

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

The following table analyzes foreign currency risk from financial instruments as of March 31, 2018:

Foreign Currency Sensitivity

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

b. Interest Rate Risk and Sensitivity

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

c. Commodity price risk and sensitivity

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

CREDIT RISK

Credit risk refers to the risk of default on its obligation by the counterparty resulting in a financial loss. The maximum exposure to the credit risk at the reporting date is primarily from trade receivables amounting to RS.109.15 Crore and RS.110.81 Crore as of March 31, 2018 and March 31, 2017, respectively. Trade receivables are typically unsecured and are derived from revenue earned from customers primarily located in India. Credit risk has always been managed by the company through credit approvals, establishing credit limits and continuously monitoring the creditworthiness of customers to which the Company grants credit terms in the normal course of business. On account of adoption of Ind AS 109, the company uses expected credit loss model to assess the impairment loss or gain. The Company uses a provision matrix to compute the expected credit loss allowance for trade receivables. The provision matrix takes into account as per the Company’s historical experience for customers.

Liquidity risk

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

10.2 Competition and Price risk

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

10.3 Capital Risk Management

The Company’s policy is to maintain an adequate capital base so as to maintain creditor and market confidence and to sustain future development. Capital includes issued capital, share premium and all other equity reserves attributable to equity holders. In order to strengthen the capital base, the company may use appropriate means to enhance or reduce capital, as the case may be.

NOTE 11. DERIVATIVE FINANCIAL INSTRUMENTS

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

Nominal amounts of Complete Currency Swaps (CCS) for hedging entered into by the Company and outstanding at end of the year is RS.41.77 Crore (Previous year RS.42.39 Crore).

*Net of Receivables USD 2.86 Million - RS.18.58 Crore (Previous year USD 1.22 Million - RS.7.93 Crore), Euro 0.004 Million - RS.0.04 Crore (Previous year Euro Nil - H Nil) and GBP 0.03 Million - RS.0.24 Crore (Previous year GBP 0.02 Million - RS.0.14 Crore).

Interest Rate Swaps

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

The company is fully covered on interest rate fluctuation on foreign currency borrowing through interest rate swaps (IRS) and complete currency swaps (CCS).

NOTE 12. IMPAIRMENT REVIEW

Assets are tested for impairment whenever there are any internal or external indicators of impairment. Impairment test is performed at the level of each Cash Generating Unit (‘CGU’) or groups of CGUs within the Company at which the assets are monitored for internal management purposes, within an operating segment. The impairment assessment is based on higher of value in use and value from sale calculations. During the year, the testing did not result in any impairment in the carrying amount of other assets. The measurement of the cash generating units’ value in use is determined based on financial plans that have been used by management for internal purposes. The planning horizon reflects the assumptions for short to- mid-term market conditions.

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

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

NOTE 13. INFORMATION RELATED TO CONSOLIDATED FINANCIALS

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

NOTE 14. SEGMENT INFORMATION

Information about primary segment

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

NOTE 15.

Previous year figures have been regrouped/rearranged, wherever considered necessary to conform to current year’s classification.

NOTE 16.

Notes 1 to 58 are annexed to and form an integral part of financial statements.

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Mar 31, 2017

Note - 1 Leases

a) The Company has taken office spaces on operating lease basis. The operating lease arrangements, are renewable on a periodic basis and for most of the leases extend up to a maximum of 7 years from their respective dates of inception and relates to rented premises. Some of these lease agreements have price escalation clauses.

b) The Company has entered into non cancellable finance lease agreement with IBM dated 30th December 2011 to install a server from 1st March 2012 to 28th February 2017.

a) During the year, the Company has allotted 74,28,240 Equity Shares of H10/- each upon conversion of FCCBs Series-2 of Euro 6.5 million. During the previous year 2015-16, the Company had allotted 1,19,10,000 Equity Shares of H10/- each on preferential basis to the Promoter and constituents of the Promoter Group for cash at a price of H42/- each (including a premium of H32/- each) on 16th September,2015. The proceeds of the said issue have been used towards augmenting the Net Worth of the Company.

b) Company has received the request from one of the FCCB Holder for conversion of FCCB''s (Series 3) of Euro 2.4 million on 27th March,

2017 and accordingly an amount of H15.46 Cr has been considered as other equity.

c) The Company has allotted 74,28,240 Equity Shares of H10/- each upon conversion of FCCBs (Series 3) of Euro 6.5 million, after the financial year ended March 2017.

Note - 2. Employee Benefits

The Company participates in defined contribution and benefit schemes, the assets of which are held (where funded) in separately administered funds. For defined contribution schemes the amount charged to the statements of profit or loss is the total of contributions payable in the year.

a) Defined Contribution Plans

Amount recognized as an expense and included in Note 31 Item "Contribution to Provident and Other Funds H0.67 Crore (Previous year H1.19 Crore) for Superannuation Fund.

b) Other long-term benefits

Amount recognized as an expense and included in Note 31 Item "Salaries, Wages, Allowances etc. H3.72 Crore (Previous year H2.43 Crore) for long term compensated Absences.

c) Defined benefits plans

(i) Amount recognized as an expense and included in Note 31 & Note 44 "Contribution to Provident and Other Funds" H8.25 Crore (Previous year H7.58 Crore) for Provident and other fund.

(ii) Gratuity Expense H2.03 Crore (Previous year H1.35 Crore) has been recognized in "Contribution to Provident and Other Funds" under Note 31. as per Actuarial Valuation.

iii. Associate of

Bengal & Assam Company Limited (BACL)

iv. Trust under common control

JK Paper Limited (JK Paper Mills) Compulsory Employees Provident Fund JK Paper Limited Employees Gratuity Fund JK Paper Limited Officers Superannuation Scheme

v. Key Management Personnel (KMP)

Executive Directors

Non-Executive Directors

Shri Harsh Pati Singhania, Vice Chairman & Managing Director .

Shri Bharat Hari Singhania, Chairman

Shri Om Prakash Goyal, Whole-time Director

Shri Arun Bharat Ram

^Executives Shri Dhirendra Kumar

Shri V. Kumaraswamy, Chief Finance Officer •

Shri M. H. Dalmia

Shri S. C. Gupta, Vice President & Company Secretary

Shri R. V. Kanoria Shri Sandip Somany Shri Shailendra Swarup Shri Udayan Bose Smt. Vinita Singhania Shri Wim Wienk

The fair value of financial assets and liabilities are included at the amount at which the instrument could be exchanged in a current transaction between willing parties, other than in a forced or liquidation sale.

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

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

B Company has opted to fair value its mutual fund investment through profit & loss C Company has opted to fair value its quoted investments in equity share through OCI

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

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

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

Fair value hierarchy

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

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

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

3. Financial risk factors

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

i. Credit Risk

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

ii. Market risk

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

a.) Foreign Currency Risk and sensitivity

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

b. Interest Rate Risk and Sensitivity

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

c. Commodity price risk and sensitivity

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

CREDIT RISK

Credit risk refers to the risk of default on its obligation by the counterparty resulting in a financial loss. The maximum exposure to the credit risk at the reporting date is primarily from trade receivables amounting to H110.81 Crore and H139.18 Crore as of March 31, 2017 and March 31, 2016, respectively. Trade receivables are typically unsecured and are derived from revenue earned from customers primarily located in India. Credit risk has always been managed by the company through credit approvals, establishing credit limits and continuously monitoring the creditworthiness of customers to which the Company grants credit terms in the normal course of business. On account of adoption of Ind AS 109, the company uses expected credit loss model to assess the impairment loss or gain. The Company uses a provision matrix to compute the expected credit loss allowance for trade receivables. The provision matrix takes into account as per the Company''s historical experience for customers.

Liquidity risk

Liquidity risk arises when the Company will not be able to meet its present and future cash and collateral obligations. The risk management action focuses on the unpredictability of financial markets and tries to minimise adverse effects. The Company uses derivative financial instruments to hedge risk exposures. Risk management is carried out by the Finance department under Forex Policies as adopted and duly approved by the Board. The Company''s approach is to ensure, as far as possible, that it will have sufficient liquidity to meet its liabilities when due and company monitors rolling forecasts of its liquidity requirements.

4. Competition and Price risk

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

5. Capital Risk Management

The Company''s policy is to maintain an adequate capital base so as to maintain creditor and market confidence and to sustain future development. Capital includes issued capital, share premium and all other equity reserves attributable to equity holders. In order to strengthen the capital base, the company may use appropriate means to enhance or reduce capital, as the case may be.

Note - 6. Derivative Financial Instruments

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

*Net of Receivables USD 1.22 Million - H7.93 Crore (Previous year USD 3.10 Million - H20.55 Crore) and GBP 0.02 Million - H0.14 Crore (Previous year GBP Nil - HNil).

Note - 53 Impairment Review

Assets are tested for impairment whenever there are any internal or external indicators of impairment. Impairment test is performed at the level of each Cash Generating Unit (''CGU'') or groups of CGUs within the Company at which the assets are monitored for internal management purposes, within an operating segment. The impairment assessment is based on higher of value in use and value from sale calculations. During the year, the testing did not result in any impairment in the carrying amount of other assets. The measurement of the cash generating units'' value in use is determined based on financial plans that have been used by management for internal purposes. The planning horizon reflects the assumptions for short to- mid-term market conditions.

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

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

Note - 7.New Developments

a) The Company has ceased to be a party to Joint Venture Agreement with Oji JK Packaging Private Limited w.e.f 20th January, 2017

b) During the year 2016-17, JK Enviro-Tech Limited, a subsidiary of the Company, became its Wholly Owned Subsidiary Company

c) During the year 2016-17, JK Paper International (Singapore) Pte Limited JKPI (S) PL , previously known as Habras International (Singapore) Pte. Limited (subsidiary of JK Enviro-Tech Limited), become wholly owned subsidiary of JK Paper Limited w.e.f 8th of March 2017.

Note - 8. Information related to consolidated financials

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

Note - 9. First Time Adoption of Ind AS

These financial statements, for the year ended 31 March 2017, have been prepared in accordance with Ind AS, for the purposes of transition to Ind AS, the company has followed the guidance prescribed in Ind AS 101- First time adoption of Indian Accounting Standards, with April 01, 2015 as the transition date and IGAAP as the previous GAAP.

Accordingly, the Company has prepared financial statements which comply with Ind AS applicable for periods ending on 31 March 2017, together with the comparative period data as at and for the year ended 31 March 2016, as described in the summary of significant accounting policies. In preparing these financial statements, the Company''s opening balance sheet was prepared as at 1 April 2015, the date of transition to Ind AS. This note explains the principal adjustments made by the Company in restating its Indian GAAP financial statements, including the balance sheet as at 1 April 2015 and the financial statements as at and for the year ended 31 March 2016.

D. There is no significant reconciliation items between cash flow prepared under Previous GAAP and prepared under Ind AS.

Disclosures as required by Indian accounting standard (Ind AS) 101 first time adoption of Indian Accounting Standards Exemption and exceptions availed

Below mentioned are the applicable Ind AS 101 optional exemptions and mandatory exceptions applied in the transition from previous GAAP to Ind AS.

(A) Ind AS Optional Exemptions:

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

i) The company has elected to measure an item of Property plant and Equipments and intangible assets at the date of transition to Ind AS as at its fair value and use that fair value as deemed cost at that date

ii) Appendix C to Ind AS 17 requires an entity to assess whether a contract or arrangement contains a lease. In accordance with Ind AS 17, this assessment should be carried out at the inception of the contract or arrangement. However, the company has done the assessment of lease in contracts based on conditions in prevailing as at the date of transition.

iii) The company has elected to apply previous GAAP carrying amount of its investment in subsidiaries, associates and joint ventures as deemed cost as on the date of transition to Ind AS.

iv) Ind AS 101 permits an entity to designate particular equity investment ( Other than equity investment in subisdiaries, joint ventures and associates ) as at fair value through other Comprehensive Income (FVOCI) based on facts and circumstances as the date of transition to Ind AS ( rather than at intitial recognition). Other equity investment are classified at Fair Value through Profit & Loss (FVTPL). The Company has availed this exemption to designate certain equity investment as FVOCI on the date of trasition.

v) The company has continued the policy adopted for accounting for exchange differences arising from translation of long-term foreign currency monetary items recognised in the financial statements for the period ending immediately before the beginning of the first Ind AS financial reporting period as per the previous GAAP

(B) Ind AS mandatory Exceptions:

The following mandatory exceptions have been applied in accordance with Ind AS 101 in preparing the financial statements.

i) Estimates

The estimates at April 01, 2015 and March 31, 2016 are consistent with those made for the same dates in accordance with Indian GAAP (after adjustments to reflect any differences if any, in accounting policies) apart from the items where application of Indian GAAP did not require estimation. The estimates used by the Company to present these amounts in accordance with Ind AS reflect conditions as at the transition date and as of March 31, 2016.

ii) Derecognition of financial assets and financial liabilities

The Company has elected to apply the derecognition requirements for financial assets and financial liabilities in Ind AS 109 prospectively for transitions occurring on or after the date of transition to Ind AS.

iii) Classification and measurement of financial assets

The Company has classified the financial assets in accordance with Ind AS 109 on the basis of facts and circumstances that exist at the date of transition to Ind AS.

Notes to the reconciliation of equity as at April 01, 2015 and March 31, 2016 and total comprehensive income for the year ended March 31, 2016A.

i) Fair Value as deemed cost - Property Plant and Equipment (PPE)

The Company has opted the option of fair value as deemed cost for the Property Plant and Equipment as on the date of transition to Ind AS. This has resulted in increase of H310.06 Cr in the value of the Property Plant and Equipment with corresponding increase in retained earnings of H310.06 Cr and deferred tax liability of H68.47 Cr . Further, the company has also recognised the revision in useful life as on date of transition to Ind AS to retained earnings and deferred tax liability.

Reclassification of Assets Held for sale and fair value adjustments led to additional depreciation of H9.90 Crore during the year ended March 31, 2016.

During the year ended March 31, 2016, the Company has sold some of the itmes of Property Plant and Equipment which was fair valued as on the transition date under Ind AS, such sale has resulted into reduction of profit on sale of Property Plant and Equipment by H0.15 Crore. As the Company has opted the option of fair value as deemed cost for the Property Plant and Equipment as on the date of transition to Ind AS, hence the carrying value of revaluation reserve of H2.92 Cr has been adjusted against retained earnings on the date of transition. Subsequently during 2015-16, depreciation charged to revaluation reserve under previous GAAP has been reversed and depreciation as per Ind AS has been accounted for.

ii) As per the provisions of Ind AS 105, any non- current assets are to be classified as assets held for sale, if the sale of such assets is highly probable within a period of 12 months from the date of its classification. The Company has now reclassified its assets earlier held for sale as Property Plant & Equipment (PPE) - Assets Not in Active Use. Impact of depreciation has also been considered accordingly.

B. Investments (Non - Current & Current)

i) The company has elected to apply previous GAAP carrying amount of its investment in subsidiaries, associates and joint ventures as deemed cost as on the date of transition to Ind AS.

ii) For investment in Mutual Fund, company has elected to fair value through Profit and Loss Account(FVTPL)

iii) For investment in Quoted Instrument, company has elected to fair value through OCI.(FVTOCI)

C. Financial instruments

1 Derivative financial instruments

Under Indian GAAP, derivative contracts are restated at each balance sheet date to the extent of any reduction in value is recognised in Statement of Profit and Loss. A gain on valuation is only recognised by the Company if it represents the subsequent reversal of an earlier loss. Also under IGAAP premium on forward contract is amortised over the contract period and value was calculated excluding the premium.

Under Ind AS, both reductions and increases to the fair values of derivative contracts are recognised in profit & loss. Premium is not separately accounted and amortised.

2 Financial assets and financial liabilities measured at amortized cost

Under the previous GAAP, security deposits (that are refundable in cash on completion of the lease term) are recorded at their transaction value.Under Ind AS 109-Financial Instruments, security deposits are required to be valued at fair value and difference between cost and fair value is to be amortised over the period of security as rental expenses and consequently interest income is to be booked at Effective Interest method in Profit and Loss Account

3 Cost of borrowing

Borrowing designated and carried at amortised cost are accounted on EIR method. The upfront fee or cost of borrowing incurred is deferred and accounted on EIR basis. Borrowings are shown as net of unamortised amount of upfront fee incurred.

D. Proposed Dividend

Under Indian GAAP, proposed dividends are recognised as liability in the period to which they relate irrespective of the approval by shareholders. Under Ind AS a proposed dividend is recognised as liability in the period in which it is declared (on approval of shareholders in a general meeting) or paid. Therefore the proposed dividend and dividend distribution tax for the F.Y. 2015-16 has been derecognised and recognised during 2016-17 on payment.

E. Deferred Tax

i) 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 temporary differences, which was not required under Indian GAAP

ii) In addition, the various transitional adjustments lead to different temporary differences resulting in recognition of deferred tax. Such deferred tax asset has been recognized in retained earnings.

iii) Deferred Tax liability recognised on fair valuation of PPE as on transition date has been reversed to the extent of assets sold during the year.

F. Fair Valuation of Financial Assets

i) Fair Valuation has been done for Loan given at lower rate of interest. Difference between loan amount and Fair value is recognised as interest income and Employee Cost expense as per Effective Interest Method in Profit and Loss Account.

ii) Mutual Funds has been fair valued through Profit and Loss (FVTPL)

G. Arrangement containing the lease

The company has entered into raw material supply arrangement which contains the lease. The arrangement has been classified as operating lease based on terms of the agreement, corresponding results in decrease of Cost of Material Consumed and Increase in Rent Expenses.

H. Excise Duty

Paragraph 8 of Ind AS 18, Revenue states that ''Revenue includes only the gross inflows of economic benefits received and receivable by the entity on its own account. Amounts collected on behalf of third parties such as sales taxes, goods and services taxes and value added taxes are not having any economic benefits which flow to the entity and do not result in increases in equity. Therefore, they are excluded from revenue and shown separately.

I. Remeasurements of post-employment benefit obligations

Under Ind AS, remeasurements i.e. actuarial 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 or loss. Under the previous GAAP, these remeasurements were forming part of the profit or loss for the year.

J. Depreciation on Property, Plant and Equipment

Company has reversed depreciation charged on revaluation of PPE as per previous GAAP and Depreciation on Property, Plant and Equipment has been calculated on the fair value for the F.Y. 2015-16 and depreciation as per Ind AS has been accounted.

K. Company has derecognized its Financial Assets pertaining to Renewal Energy Certificate as on April 1, 2015 H26.97 Crore and H17.87 Crore for 2015-16 due to Ind AS adjustment and the same is included in Equity reconciliation as per Indian GAAP and Ind AS.

* For the purposes of this clause, the term ''Specified Bank Notes'' shall have the same meaning provided in the notification of the Government of India, in the Ministry of Finance, Department of Economic Affairs number S.O. 3407(E), dated the 8 November 2016.

Note - 10 Segment information Information about primary segment

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

Previous year figures have been regrouped/ rearranged, wherever considered necessary to conform to current year''s classification. Notes 1 to 62 are annexed to and form an integral part of financial statements.

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Mar 31, 2016

Note:

Working Capital Borrowings are secured by hypothecation of Raw Materials, Finished Goods,
Stock-in-Process, Stores & Spares and Book Debts. The same are further secured by a second charge
on the movable and immovable assets of the Company.

29. Estimated amount of (i) contracts remaining to be executed on capital account (Net of Advances)
are Rs. 4.69 Crore (Previous year Rs. 5.12 Crore), (ii) Balance of Investment committed Rs. 2.41
Crore (Previous year Rs. 2.41 Crore) and, (iii) Export commitments against import of capital goods
under EPCG scheme Rs. 585.65 Crore (Previous year Rs. 747.52 Crore).

In respect of certain disallowances and additions made by the Income Tax Authorities, appeals are
pending before the Appellate Authorities and adjustment, if any, will be made after the same are
finally determined.

1. In respect of levy of Octroi pertaining to Unit- CPM by Songadh Group Gram Panchayat, the
Company has paid Rs. 1.25 Crore till 31st March 1997 under protest and also created a liability of
the similar amount. As the matter is still pending in the court of law, the necessary adjustment,
if any, would be made after its disposal.

2. The Company has only one business segment i.e. Paper and Boards and geographical reportable
segment i.e. Operations mainly within India, hence Segment Reporting as defined in Accounting
Standard (AS - 17) is not required.

3. a) Land, Roads, Buildings and Pulp Mill Plant & Machinery of Unit - CPM were revalued as on
30.09.1976. The revaluation in respect of these assets (other than Land and Roads) were updated and
Plant & Machinery of Paper Machine I & II and Railway Sidings were revalued as on 31.03.1994 based
on current replacement cost by the approved valuers appointed for the purpose. As a result, the
book value of such assets has been increased by Rs. 42.27 Crore, which has been transferred to
Revaluation Reserve during the year ended 31.03.1994.

b) The Assets of Rs. 157.57 Crore (Previous year Rs. 157.84 Crore) held for sale , disclosed under
the heading of "Other Current Assets" consists of Old Pulp Mill, Recovery Island , Power Block (
Coal Fired Boilers &TG Sets) and Old Lime Klin Plant based on lower of Written down value and
estimated Net Realizable Value. The Management is actively pursuing for disposal of these assets.

4. a) Long Term Loans and Advances include concessional loan of Rs. Nil (previous year Rs. 18.98
crore). Short Term Loans and Advances include concessional loan of Rs.18.98 Crore (previous year
Rs. Nil), Normal loan of Rs. 2.00 Crore (Previous year Rs. 2.00 Crore) to JK Paper Employees''
Welfare Trust, a shareholder of the Company, and loan to employees of Rs. 0.80 Crore (Previous year
Rs. 0.37 Crore) in the ordinary course of business and as per service rules of the Company.

b) Long Term Loans and Advances includes loan of Rs. 35.50 Crore (previous year Rs. 36.50 crore)
and Short Term Loans and Advances includes loan of Rs. 1.00 Crore (Previous year Rs. 1.00 Crore) to
Housing Subsidiaries for general corporate purpose and loan of Rs. 1.00 Crore (Previous year Rs.
Nil) to JK Enviro-Tech Ltd for general business purpose.

c) Advances recoverable in cash or in kind or for value to be received under " Short Term Loan and
Advances" in Note No. 19 .includes Rs. 6.90 Crore ( Previous Year Rs. 4.73 Crore) payments made for
various development projects being undertaken by the Company. The same will be adjusted once these
projects are finalized.

5. a) Sales include export incentives of Rs. 9.06 Crore (Previous year Rs. 6.38 Crore).

b) Discount includes Trade Discount Rs 69.79 Crore (Previous year Rs. 63.42 Crore).

b) Defined Benefit Plans -

Gratuity Expense Rs. 5.01 Crore (Previous year Rs. (-) 1.74 Crore) has been recognized in
"Salaries, Wages, Bonus and Gratuity etc." under Note 25.

Amount recognized as an expense and included in Note 25 & Note 44 below, Item "Contribution to
Provident and Other Funds" Rs. 7.22 Crore (Previous year Rs. 7.21 Crore).

c) Defined Contribution Plans -

Amount recognized as an expense and included in Note 25 Item "Contribution to Provident and Other
Funds" Rs. 1.19 Crore (Previous year Rs. 1.21 Crore) for Superannuation Fund.

d) Other long-term benefits -

Amount recognized as an expense and included in Note 25 Item "Salaries, Wages, Allowances etc."
Rs.2.43 Crore (Previous year Rs. 1.98 Crore) for long term compensated Absences.

e) The expected return on plan assets is determined considering several applicable factors mainly
the composition of the plan assets held, assessed risk of assets management, historical results on
plan assets and the policy for plan assets management.

f) The estimates of future salary increase, considered in actuarial valuation, after taking account
of inflation, seniority, promotion and other relevant factors, such as supply and demand in the
employment market.

6. Interest Income includes Rs. 0.65 Crore (Previous year Rs 0.53 Crore) on Deposits with Banks,
Rs. 0.01 Crore (Previous year Rs.0.22 Crore) on Income Tax refund and Rs.8.25 Crore (Previous year
Rs. 7.91 Crore) on others.

7. a) Future minimum lease payments under non-cancelable operating leases as on 31st March, 2016
are Rs. 36.03 Crore - Rs. 6.18 Crore within one year and Rs. 24.70 Crore later than one year but
not later than five years and Rs. 5.15 Crore after Five year (Previous year Rs. 42.20 Crore - Rs.
6.18 Crore within one year- Rs. 24.70 Crore later than one year but not later than five years and
Rs. I 1.32 Crore after Five year).

b) Future minimum lease payments under non-cancelable Finance leases as on 31st March, 2016 are Rs.
0.35 Crore - Rs. 0.35 Crore within one year and Rs. Nil later than one year but not later than five
years (Previous year Rs. 0.82 Crore - Rs. 0.47 Crore within one year and Rs. 0.35 Crore later than
one year but not later than five years) and their present value as on 31st March, 2016 are Rs. 0.34
Crore - Rs. 0.34 Crore within one year and Rs. Nil later than one year but not later than five year
(Previous year Rs.0.76 Crore - Rs. 0.42 Crore within one year and Rs. 0.34 Crore later than one
year but not later than five year).

8. Based on information so far available in respect of MSME (as defined in The Micro Small &
Medium Enterprises Developments Act, 2006) there is no delay in payment of dues to such enterprises
during the year and there is no such dues payable at the end of the period.

9. Consumption of Stores, Spares is net of scrap sale of Rs. 6.62 Crore (Previous year Rs. 6.62
Crore).

10. a) In accordance with Announcement issued by the Institute of Chartered Accountants of India
all outstanding

Derivatives except those covered under AS I I (revised 2003) are marked to market on Balance Sheet
date and there is gain of Rs. 0.32 Crore - reversal of previously recognized MTM Losses (Previous
year gain of Rs. 0.36 Crore - reversal of previously recognized MTM Losses) which has been
recognized in Statement of Profit and Loss.

* Net of Receivables USD 3.10 Million - Rs. 20.55 Crore (Previous year USD 3.45 Million - Rs. 21.59
Crore) and GBP Nil - Rs. Nil (Previous year GBP 0.04 Million -Rs.0.36 Crore).

11. a) Pursuant to the Accounting Standard (AS 22) - ''Accounting for Taxes on Income'', deferred tax
(liability)/asset at Balance Sheet date is:

b) Based on the past performance and current plans, the Company expects to continue to generate
taxable income which will enable it to utilize MAT credit entitlement.

c) During the current year the Company has provided Current Tax Rs. 38,21 I/- (Previous year Rs.
Nil) and also reversed MAT credit Entitlement of Rs. Nil (previous year Rs. 1.29 Crore) related to
earlier years.

Key Management Personnel (KMP) :

The remuneration paid to Vice Chairman & Managing Director Rs. 5.39 Crore (Previous year Rs. 3.03
Crore) and Whole Time Director Rs. 2.40 Crore (Previous year Rs. 1.76 Crore).The remuneration paid
to Chief Finance Officer Rs. 1.50 Crore (Previous year Rs. 1.15 Crore) and Company Secretary Rs.
0.45 Crore (Previous year Rs. 0.36 Crore).The above said remuneration is excluding provision for
Gratuity & Leave Encashment, where the actuarial valuation is done on overall Company basis.

12. The Company had allotted 1,19,10,000 Equity Shares of Rs. 10/- each on preferential basis to
the Promoter and constituents of the Promoter Group for cash at a price of Rs.42/- each (including
a premium of Rs. 32/- each) on 16th September,20l5.The proceeds of the said issue have been used
towards augmenting the Net Worth of the Company.

13. Several High Courts have stayed the retrospective nature of amendment in The Payment of Bonus
Act (Amendment), 2015 with effect from 1st April, 2014. The Company has consequently not made any
provision for Bonus for the year 2014-15 (Rs. 3.45 Crore) in the current financial year.

14. Pursuant to the Scheme of Arrangement sanctioned by the Hon''ble High Court of Gujarat under
section 391 to 394 of the Companies Act 1956, w.e.f I Oth April 2015, there was diminution in value
of the investments made in the shares of JK Enviro-Tech Limited of Rs. 5.04 Crore in Previous year.

15. Previous year''s figures have been re-grouped/re-arranged wherever necessary.

---

Mar 31, 2015

1. Estimated amount of (i) contracts remaining to be executed on capital account (Net of Advances) Rs. 5.12 Crore (Previous year Rs. 27.19 Crore), (ii) Investment Rs. 2.41 Crore (Previous year Rs. 5.40 Crore) and, (iii) Export commitments against import of capital goods under EPCG scheme Rs. 747.52 Crore (Previous year Rs. 864.90 Crore).

2. Contingent liabilities in respect of claims not acknowledged and not provided for, are as follows:

Rs. in Crore (10 million)

31st March, 2015 31st March,20I4

a) Excise duty liability in respect of matters in appeals 14.31 12.69

b) Sales tax liability in respect of matters in appeals 0.72 2.82

c) Other Matters 11.36 9.99

In respect of certain disallowances and additions made by the Income Tax Authorities, appeals are pending before the Appellate Authorities and adjustment, if any, will be made after the same are finally determined.

3. In respect of levy of Octroi pertaining to Unit - CPM by Songadh Group Gram Panchayat, the Company has paid Rs. 1.25 Crore till 31st March 1997 under protest and also created a liability for the similar amount. As the matter is still pending in the court of law, the necessary adjustment, if any, would be made after its disposal.

4. The Company has only one business segment i.e. Paper and Boards and geographical reportable segment i.e. Operations mainly within India, hence Segment Reporting as defined in Accounting Standard (AS - 17) is not required.

5. a) Land, Roads, Buildings and Pulp Mill Plant & Machinery of Unit - CPM were revalued as on 30.09.1976.

The revaluation in respect of these assets (other than Land and Roads) were updated and Plant & Machinery of Paper Machine 1 & 11 and Railway Sidings were revalued as on 31.03.1994 based on current replacement cost by the approved valuers appointed for the purpose. As a result, the book value of such assets has been increased by Rs. 42.27 Crore, which has been transferred to Revaluation Reserve during the year ended 31.03.1994.

b) The Assets of Rs. 157.84 Crore held for sale, disclosed under the heading of "Other Current Assets" consists of Old Pulp Mill, Recovery Island, Power Block (Coal Fired Boilers & TG Sets) and Old Lime Klin Plant based on lower of Written down value and estimated Net Realisable Value. The Management is actively pursuing for disposal of these assets.

6. Pursuant to the Scheme of Arrangement sanctioned by the Hon'ble High Court of Gujarat under section 391 to 394 of the Companies Act 1956, which has become effective on 10th April 2015, Lime Kiln Undertaking of the JK Enviro-Tech Limited has been transferred and vested in the Company as a going concern on slump sale basis with effect from appointed date i.e. 1st April 2013.

The accounts for the year have been prepared by giving the effect of the above scheme. As per the Scheme, the assets of the Lime Kiln Undertaking have been recorded at its purchase cost to JK Paper Limited and apportioned based on independent expert advice.

d) With effect from Appointed date and up to and including the Effective date:

i) JK Enviro-Tech Limited carried on the business activities of the Lime Kiln undertaking w.e.f. from Is1 April 2013 till 10th April 2015 for and behalf of the JK Paper Limited,

ii) All profits or income that accrued to JK Enviro-Tech Limited and all taxes thereof or losses arising or incurred by it with respect to Lime Kiln Undertaking has been, for all purposes including accounting and Tax, treated as the profits, taxes or losses as the case may be, of JK Paper Limited.

iii) Pursuant to above, profit of Rs. 2.02 Crore (net of deferred tax of Rs. 0.90 Crore) of Lime Kiln Undertaking related to Financial Year 2013-14 has been added to the General Reserve.

# includes Rs. 24.58 Crore. disclosed as held for sale, under the heading of "Other Current Assets "

e) As a result of the above, there is diminution in value of the investments made in the shares of JK Enviro-Tech Limited. As per the Scheme, Loss arising as a result of the diminution has been charged to the statement of profit and loss of the Company and an amount equivalent to the aforementioned diminution in value of the investments, i.e., Rs. 5.04 Crore has been transferred from the securities premium reserve to the statement of profit and loss.

7. a) Long Term Loans and Advances includes concessional loan of Rs.I8.98 Crore (previous year Rs. 18.98 crore) and Short Term Loans and Advances includes Rs. 2.00 Crore (Previous year Rs. 2.00 Crore) to JK Paper Employees' Welfare Trust, a shareholder of the Company. Loan to employees of Rs. 0.37 Crore (Previous year Rs. 0.40 Crore) in the ordinary course of business and as per service rules of the Company.

b) Long Term Loans and Advances includes loan of Rs. 36.50 Crore (previous year Rs. 2.50 crore) and Short Term Loans and Advances includes loan of Rs. 1.00 Crore (Previous year Rs. 1.25 Crore) to Housing Subsidiaries for general corporate purpose,

c) Advances recoverable in cash or in kind or for value to be received under " Short Term Loan and Advances" in Note No, 19 .includes Rs, 4,73 Crore ( Previous Year Rs. 7.77 Crore) payments made for various development projects being undertaken by the Company including in Vietnam and Myanmar, The same will be adjusted once these projects are finalised.

8. a) Sales include export incentives of Rs. 6.38 Crore (Previous year Rs. 3.14 Crore).

b) Discount includes Trade Discount Rs 63.42 Crore (Previous year Rs. 55.05 Crore).

b) Defined Benefit Plans -

Gratuity Expense Rs. (-) 1.74 Crore (Previous year Rs. 1.39 Crore) has been recognized in "Salaries, Wages, Bonus and Gratuity etc." under Note 25.

Amount recognized as an expense and included in Note 25 & Note 47 below, Item "Contribution to Provident and Other Funds" Rs. 7.21 Crore (Previous year Rs. 7.35 Crore).

c) Defined Contribution Plans -

Amount recognized as an expense and included in Note 25 Item "Contribution to Provident and Other Funds" Rs. 1.21 Crore (Previous year Rs. [.12 Crore) for Superannuation Fund.

d) Other Long-Term Benefits -

Amount recognized as an expense and included in Note 25 Item "Salaries, Wages, Allowances etc." Rs. [.98 Crore (Previous year Rs. 2.05 Crore) for long term compensated Absences.

e) The expected return on plan assets is determined considering several applicable factors mainly the composition of the plan assets held, assessed risk of assets management, historical results on plan assets and the policy for plan assets management.

f) The estimates of future salary increase, considered in actuarial valuation, after taking account of inflation, seniority, promotion and other relevant factors, such as supply and demand in the employment market.

9. Exceptional Items for the previous year ended 31ffl March, 2014 represent gain on Derivative transactions Rs. 13.30 Crore, write back of provisions for diminution in the value of investments Rs. 4.53 Crore. and losses due to adverse operating parameters during stabilization period at Unit -JKPM Rs.35.32 Crore.

10. Interest Income includes Rs. 0.53 Crore (Previous year Rs 0.28 Crore) on Deposits with banks, Rs. 0.22 Crore (Previous year Rs. 0.10 Crore) on Income Tax refund and Rs. 7.91 Crore (Previous year Rs. 5.31 Crore) on others.

11. a) Future minimum lease payments under non-cancelable operating leases as on 31st March, 2015 are Rs.

12. Rs.20 Crore - Rs. 6.18 Crore within one year and Rs. 24.70 Crore later than one year but not later than five years and Rs. 11.32 Crore after Five year (Previous year Rs. Nil - Rs. Nil within one year and Rs. Nil later than one year but not later than five years).

b) Future minimum lease payments under non-cancelable Finance leases as on 31st March, 2015 are Rs. 0.82 Crore - Rs. 0.47 Crore within one year and Rs. 0.35 Crore later than one year but not later than five years (Previous year Rs. 1.29 Crore - Rs. 0.47 Crore within one year and Rs. 0.82 Crore later than one year but not later than five years) and their present value as on 31st March, 2015 are Rs. 0.76 Crore - Rs. 0.42 Crore within one year and Rs.0.34 Crore later than one year but not later than five year (Previous year Rs. 1.14 Crore - Rs. 0.39 Crore within one year and Rs. 0.75 Crore later than one year but not later than five year),

13. Based on information so far available in respect of MSME (as defined in The Micro Small & Medium Enterprises Developments Act, 2006) there is no delay in payment of dues to such enterprises during the year and there is no such dues payable at the end of the period,

14. Consumption of Stores, Spares is net off scrap sale of Rs. 6.62 Crore (Previous year Rs. 6.46 Crore).

15. a) In accordance with Announcement issued by the Institute of Chartered Accountants of India all outstanding derivatives except those covered under AS 11 (revised 2003) are marked to market on Balance Sheet date and there is gain of Rs. 0.36 Crore - reversal of previously recognized MTM Losses (Previous year gain of Rs. 0.55 Crore - reversal of previously recognized MTM Losses) which has been recognized in Statement of Profit and Loss.

16. Depreciation has been provided in accordance with Part C, Schedule II of the Companies Act, 2013 w.e.f.In April, 2014. Consequently the Depreciation and amortization expenses for the year are lower by Rs.37.02 Crore.

17. Current year's figures include impact of Scheme of Arrangement, hence previous year figures are not comparable. Previous year's figures have been re-grouped/re-arranged wherever necessary.

---

Mar 31, 2014

1. Estimated amount of (i) contracts remaining to be executed on capital account (Net of Advances) Rs. 27.19 Crore (Previous year Rs. 63.96 Crore), (ii) Investment Rs. 5.40 Crore (Previous year Rs. 12.60 Crore) and,

(iii) Export commitments against import of capital goods under EPCG scheme Rs. 864.90 Crore (Previous year Rs. 809.82 Crore).

2. Contingent liabilities in respect of claims not acknowledged and not provided for, are as follows:

Rs. in Crore (10 million)

31st March, 2014 31st March, 2013

a) Excise duty liability in respect of matters in appeals 12.69 12.63

b) Sales tax liability in respect of matters in appeals 2.82 2.82

c) Other Matters 9.99 10.82

In respect of certain disallowances and additions made by the Income Tax Authorities, appeals are pending before the Appellate Authorities and adjustment, if any, will be made after the same are finally determined.

3. a) The Company has entered into a Take or Pay agreement for the purpose of sourcing lime from JK Enviro-Tech Limited. The Company has given an undertaking that on the happening of certain events, it will takeover the Loan taken by JK Enviro-Tech Limited from IDFC Limited. The current outstanding is Rs 11.76 Crore (including principal and interest) as on 31st March, 2014.

b) The Company has agreed with HDFC Limited that on happening of certain events, it will take all steps as may be required to ensure the timely repayment of the loan obligations of the Housing Subsidiaries for the loan availed from HDFC Limited. The current outstanding is Rs 36.09 Crore (including principal and interest) as on 31st March, 2014.

4. In respect of levy of Octroi pertaining to Unit - CPM by Songadh Group Gram Panchayat, the Company has paid Rs.1.25 Crore till 31st March 1997 under protest and also created a liability for the similar amount. As the matter is still pending in the court of law, the necessary adjustment, if any, would be made after its disposal.

5. The Company has only one business segment i.e. Paper and Boards and geographical reportable segment i.e. Operations mainly within India, hence Segment Reporting as defined in Accounting Standard (AS - 17) is not required.

6. a) Land, Roads, Buildings and Pulp Mill Plant & Machinery of Unit - CPM were revalued as on 30.09.1976.

The revaluation in respect of these assets (other than Land and Roads) were updated and Plant & Machinery of Paper Machine I & II and Railway Sidings were revalued as on 31.03.1994 based on current replacement cost by the approved valuers appointed for the purpose. As a result, the book value of such assets has been increased by Rs. 42.27 Crore, which has been transferred to Revaluation Reserve during the year ended 31.03.1994.

b) The Assets of Rs.134.15 Crore held for Sale, disclosed under the heading of "Other Current Assets" in Note No. 20, consists of Old Pulp Mill, Recovery Island and Power Block (Coal Fired Boilers & TG Sets) based on lower of Written Down Value and estimated Net Realisable Value. The Management intends to use these assets in various projects under consideration.

7. a) Long Term Loans and Advances includes concessional loan of Rs.18.98 Crore (previous year Rs. Nil) and

Short Term Loans and Advances includes Rs. 2.00 Crore (Previous year Rs. 20.98 Crore including concessional loan of Rs. 18.98 Crore) to JK Paper Employees'' Welfare Trust, a shareholder of the Company and loan to employees of Rs. 0.40 Crore (Previous year Rs. 0.45 Crore) in the ordinary course of business and as per service rules of the Company.

b) The Company entered in to an arrangement with JK Enviro-Tech Limited to process its Lime sludge and convert it to Lime on a cost plus basis to meet the pollution control norms under CREP. Loans and Advances include Rs. 19.04 Crore (Previous year Rs. 15.06 Crore) against future supplies.

c) Advances recoverable in cash or in kind or for value to be received under "Short Term Loan and Advances" in Note No.19, includes Rs. 7.77 Crore ( Previous Year Rs. 5.22 Crore) payments made for various development projects being undertaken by the Company including in Vietnam and Myanmar .The same will be adjusted once these projects are finalised .

8. a) Sales include export incentives of Rs. 3.14 Crore (Previous year Rs. 3.91 Crore).

b) Discount includes Trade Discount Rs 55.05 Crore (Previous year Rs. 54.19 Crore).

b) Defined Benefit Plans -

Gratuity Expense Rs. 1.39 Crore (Previous year Rs. 3.10 Crore) has been recognized in "Salaries, Wages, Bonus and Gratuity etc." under Note 25.

Amount recognized as an expense and included in Note 25 & Note 47 below, Item "Contribution to Provident and Other Funds" Rs. 7.35 Crore (Previous year Rs. 5.88 Crore).

c) Defined Contribution Plans -

Amount recognized as an expense and included in Note 25 Item "Contribution to Provident and Other Funds" Rs. 1.12 Crore (Previous year Rs. 2.14 Crore) for Superannuation Fund.

d) Other long-term benefits -

Amount recognized as an expense and included in Note 25 Item "Salaries, Wages, Allowances etc." Rs. 2.05 Crore (Previous year Rs. 1.31 Crore) for long term compensated Absences.

e) The expected return on plan assets is determined considering several applicable factors mainly the composition of the plan assets held, assessed risk of assets management, historical results on plan assets and the policy for plan assets management.

f) The estimates of future salary increase, considered in actuarial valuation, after taking account of inflation, seniority, promotion and other relevant factors, such as supply and demand in the employment market.

9. Exceptional Items for the year ended 31st March, 2014 represent gain on Derivative transactions Rs.13.30 Crore, write back of provisions for diminution in the value of investments Rs.4.53 Crore and losses due to adverse operating parameters during stabilization period at Unit -JKPM Rs.35.32 Crore.

10. Interest Income includes Rs. 0.28 Crore (Previous year Rs 1.03 Crore) on Deposits with banks, Rs. 0.10 Crore (Previous year Rs. 0.06 Crore) on Income Tax refund and Rs. 5.31 Crore (Previous year Rs. 7.72 Crore) on others.

11. Capital Work-in-progress includes machinery, building under construction and the following expenses pending allocation/capitalization.

12. a) Future minimum lease payments under non-cancelable operating leases as on 31st March, 2014 are Rs. Nil, Rs. Nil within one year and Rs. Nil later than one year but not later than five years (Previous year Rs. 0.04 Crore, Rs. 0.04 Crore within one year and Rs. Nil later than one year but not later than five years).

b) Future minimum lease payments under non-cancelable Finance leases as on 31st March, 2014 are Rs. 1.29 Crore, Rs. 0.47 Crore within one year and Rs. 0.82 Crore later than one year but not later than five years (Previous year Rs. 1.64 Crore, Rs. 0.47 Crore within one year and Rs. 1.17 Crore later than one year but not later than five years) and their present value as on 31st March, 2014 are Rs. 1.14 Crore, Rs. 0.39 Crore within one year and Rs.0.75 Crore later than one year but not later than five year (Previous year Rs.1.39 Crore, Rs. 0.35 Crore within one year and Rs.1.04 Crore later than one year but not later than five year).

13. Based on information so far available in respect of MSME (as defined in ''The Micro Small & Medium Enterprises Developments Act, 2006) there is no delay in payment of dues to such enterprises during the year and there is no such dues payable at the end of the period.

14. Consumption of Stores, Spares is net off scrap sale of Rs. 6.46 Crore (Previous year Rs. 5.29 Crore).

15. a) In accordance with Announcement issued by the Institute of Chartered Accountants of India all outstanding derivatives except covered under AS 11 (revised 2003) are marked to market on Balance Sheet date and there is gain of Rs. 0.55 Crore - reversal of previously recognised MTM Losses (Previous year gain of Rs. 0.18 Crore - reversal of previously recognised MTM Losses) which has been recognized in Statement of Profit and Loss.

16. a) Pursuant to the Accounting Standard (AS 22) - ''Accounting for Taxes on Income'', deferred tax (liability)/ asset at Balance Sheet date is:

b) Based on the past performance and current plans, the Company expects to continue to generate taxable income which will enable it to utilise MAT credit entitlement.

c) During the current year the Company has provided Current Tax Rs. 0.08 Crore (Previous year Rs. 0.02 Crore) and also reversed MAT credit Entitlement of Rs. 0.33 Crore (previous year recognized MAT credit entitlement of Rs.1.80 Crore) related to earlier years.

17. Disclosure as required under ''Related Party Disclosures'' (AS 18) issued by The Institute of Chartered Accountants of India are as below:

a. List of Related Parties

i. Subsidiaries (Wholly Owned)

- Songadh Infrastructure & Housing Limited

- Jaykaypur Infrastructure & Housing Limited

ii. Subsidiary

- JK Enviro-Tech Limited

iii. Joint Venture

- Oji JK Packaging Private Limited

iv. Enterprise over which KMP''s have significant influence

- Habras International Limited

v. Key Management Personnel (KMP)

- Shri Harsh Pati Singhania - Vice Chairman & Managing Director

- Shri Om Prakash Goyal - Whole-time Director

Key Management Personnel (KMP) :

The remuneration paid to Vice Chairman & Managing Director Rs. 3.05 Crore (Previous year Rs. 2.90 Crore) and Whole Time Director Rs. 1.78 Crore (Previous year Rs. 1.58 Crore). The remuneration paid to the Managerial Personnel by way of minimum remuneration, in terms of the appointment, exceeds the limit prescribed under Section 309(3) of the Companies Act, 1956, by Rs. 3.52 Crore, and is subject to requisite approvals from the Central Government of India. Remuneration is excluding provision for Gratuity & Leave Encashment, where the actuarial valuation is done on overall Company basis.

18. During the year, JK Enviro-Tech Limited has become a Subsidiary of the Company. The Stock Exchanges have conveyed their "no-objection" to the proposed Scheme of Arrangement for transfer of Lime Kiln Undertaking of the Subsidiary w.e.f. 1st April 2013, to the Company. The Company will now file the said Scheme before the High Court of Gujarat for its approval. Pending approval, no impact has been considered in the standalone accounts of the Company in the current financial year.

19. Previous year''s figures have been re-grouped/re-arranged wherever necessary.

As per our report of even date

20 Principles of Consolidation:

a) The Consolidated Financial Statements comprise of the financial statements of JK Paper Limited (Parent Company) and the following as on 31st March, 2014;

b) The Financial Statements of the Parent Company and its Subsidiaries have been consolidated on a line by line basis by adding together the book value of like items of assets, liabilities, income and expenses, after eliminating intra-group balances and intra-group transactions.

JK Enviro-Tech Limited has become a subsidiary of the Company and consolidated during the current year, hence the figure of current year are not comparable with the previous year.

c) In case of Joint Venture, Company has adopted the proportionate consolidation method in accordance with Accounting Standard (AS-27) - "Financial Reporting of Interest in Joint Ventures".

d) The Accounting Policies of the Parent Company, its Subsidiaries and Joint Venture are largely similar, hence not be re-produced.

e) Significant Accounting Policies and Notes on Accounts of the Financial Statements of the Company and its Subsidiaries are stated in their respective Financial Statements.

21 Trade Payable includes Rs. 0.07 Crore, Capital work in progress includes Rs. 5.60 Crore, Current Tax (MAT) includes Rs. 0.05 Crore and Deferred Tax Credit includes Rs. 0.06 Crore for share of Joint Venture.

22 Estimated amount of (i) contracts remaining to be executed on capital account (Net of Advances) Rs. 30.56 Crore (Previous year Rs. 63.96 Crore) including share of Joint Venture Rs. 3.37 Crore (Previous year Rs. Nil),

(ii) Investment Rs. 5.40 Crore (Previous year Rs. 12.60 Crore) and, (iii) Export commitments against import of capital goods under EPCG scheme Rs. 864.90 Crore (Previous year Rs. 809.82 Crore).

23 Contingent liabilities in respect of claims not acknowledged and not provided for, are as follows:

Rs. in Crore (10 million) 31st March, 2014 31st March, 2013

a) Excise duty liability in respect of matters in appeals 12.69 12.63

b) Sales tax liability in respect of matters in appeals 2.82 2.82

c) Other Matters 9.99 10.82

In respect of certain disallowances and additions made by the Income Tax Authorities, appeals are pending before the Appellate Authorities and adjustment, if any, will be made after the same are finally determined.

24 a) The Company has entered into a Take or Pay agreement for the purpose of sourcing lime from JK Enviro-Tech Limited. The Company has given an undertaking that on the happening of certain events, it will takeover the Loan taken by JK Enviro-Tech Limited from IDFC Limited. The current outstanding is Rs. 11.76 Crore (including principal and interest) as on 31st March, 2014.

b) The Company has agreed with HDFC Limited that on happening of certain events, it will take all steps as may be required to ensure the timely repayment of the loan obligations of the Housing Subsidiaries for the loan availed from HDFC Limited. The current outstanding is Rs. 36.09 Crore (including principal and interest) as on 31st March, 2014.

25 Segment Reporting

The Company has identified business segment as the primary segment, after considering all the relevant factors. The Company''s manufactured products are sold primarily within India hence there is no reportable geographical segment.

The Company''s operation predominantly relates to manufacture of Paper & Boards. Other Business Segment comprises activities for providing housing facilities to the employees engaged in Paper & Board manufacturing business and manufacturing of Lime for JK Paper Limited. These operations are insignificant in the context of total turnover, hence same has been shown as "Others".

26 a) Land, Roads, Buildings and Pulp Mill Plant & Machinery of Unit - Central Pulp Mills were revalued as on 30.09.1976. The revaluation in respect of these assets (other than Land and Roads) were updated and Plant & Machinery of Paper Machine I & II and Railway Sidings were revalued as on 31.03.1994 based on current replacement cost by the approved valuers appointed for the purpose. As a result, the book value of such assets has been increased by Rs. 42.27 Crore, which has been transferred to Revaluation Reserve during the year ended 31.03.1994.

b) The Assets of Rs.134.15 Crore held for Sale, disclosed under the heading of "Other Current Assets" in Note No.20, consists of Old Pulp Mill, Recovery Island and Power Block (Coal Fired Boilers & TG Sets) based on lower of Written Down Value and estimated Net Realisable Value. The Management intends to use these assets in various projects under consideration.

27 a) Long Term Loans and Advances includes concessional loan of Rs.18.98 Crore (previous year Rs. Nil) and Short Term Loans and Advances includes Rs. 2.00 Crore (Previous year Rs. 20.98 Crore including concessional loan of Rs. 18.98 Crore) to JK Paper Employees'' Welfare Trust, a shareholder of the Company and loan to employees of Rs. 0.40 Crore (Previous year Rs. 0.45 Crore) in the ordinary course of business and as per service rules of the Company.

b) Advances recoverable in cash or in kind or for value to be received under "Short Term Loan and Advances" in Note No.19 ,includes Rs.7.77 Crore (Previous Year Rs.5.22 Crore) payments made for various development projects being undertaken by the Company including in Vietnam and Myanmar .The same will be adjusted once these projects are finalised .

28. Exceptional Items for the year ended 31st March, 2014 represent gain on Derivative transactions Rs.13.30 Crore, write back of provisions for diminution in the value of investments Rs.4.53 Crore. and losses due to adverse operating parameters during stabilization period at Unit -JKPM Rs.35.32 Crore.

29. a) Pursuant to the Accounting Standard (AS 22) - ''Accounting for Taxes on Income'', deferred tax (liability)/ asset at Balance Sheet date is:

b) Based on the past performance and current plans, the Company expects to continue to generate taxable income which will enable it to utilise MAT credit entitlement.

c) During the current year the Company has provided Current Tax Rs. 0.08 Crore (Previous year Rs. 0.02 Crore) and also reversed MAT credit Entitlement of Rs. 0.33 Crore (previous year recognized MAT credit entitlement of Rs.1.80 Crore) related to earlier years.

30. Disclosure as required under ''Related Party Disclosures'' (AS 18) issued by The Institute of Chartered Accountants of India are as below:

a) List of Related Parties

i. Enterprise over which KMP''s have significant influence

- Habras International Limited

ii. Key Management Personnel (KMP)

- Shri Harsh Pati Singhania - Vice Chairman & Managing Director

- Shri Om Prakash Goyal - Whole-time Director

Key Management Personnel (KMP) :

The remuneration paid to Vice Chairman & Managing Director Rs. 3.05 Crore (Previous year Rs. 2.90 Crore) and Whole Time Director Rs. 1.78 Crore (Previous year Rs. 1.58 Crore). The remuneration paid to the Managerial Personnel by way of minimum remuneration, in terms of the appointment, exceeds the limit prescribed under Section 309(3) of the Companies Act, 1956, by Rs. 3.52 Crore, and is subject to requisite approvals from the Central Government of India. Remuneration is excluding provision for Gratuity & Leave Encashment, where the actuarial valuation is done on overall Company basis.

31. Previous year''s figures have been re-grouped/re-arranged wherever necessary.

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Mar 31, 2013

1. Estimated amount of (i) contracts remaining to be executed on capital account (Net of Advances) Rs. 63.96 Crore (Previous year Rs. 668.29 Crore) and (ii) Investment Rs. 12.60 Crore (Previous year Rs. Nil). Export commitments against import of capital goods under EPCG scheme Rs. 809.82 Crore (Previous year Rs. 364.81 Crore).

2. Contingent liabilities in respect of claims not acknowledged and not provided for, are as follows:

Rs. in Crore (10 million)

31st March, 2013 31st March, 2012

a) Excise duty liability in respect of matters in appeal 12.63 9.83

b) Sales tax liability in respect of matters in appeals 2.82 3.69

c) Other Matters 10.82 27.78

In respect of certain disallowances and additions made by the Income Tax Authorities, appeals are pending before the Appellate Authorities and adjustment, if any, will be made after the same are finally determined.

3. a) The Company has entered into a Take or Pay agreement for the purpose of sourcing lime from JK Enviro-Tech Ltd. The Company has given an undertaking that on the happening of certain events, it will takeover the Loan taken by JK Enviro-Tech Ltd. from IDFC Ltd. The current outstanding is Rs. 17.17 Crore (including principal and interest) as on 31st March, 2013.

b) The Company has agreed with HDFC Limited that on happening of certain events, it will take all steps as may be required to ensure the timely repayment of the loan obligations of the Housing Subsidiaries for the loan availed from HDFC Limited. The current outstanding is Rs. 38.40 Crore (including principal and interest) as on 31st March, 2013.

4. In respect of levy of Octroi pertaining to Unit - CPM by Songadh Group Gram Panchayat, the Company has paid Rs.1.25 Crore till 31st March 1997 under protest and also created a liability for the similar amount. As the matter is still pending in the court of law, the necessary adjustment, if any, would be made after its disposal.

5. The Company has only one business segment i.e. Paper and Boards and geographical reportable segment i.e. Operations mainly within India, hence Segment Reporting as defined in Accounting Standard (AS - 17) is not required.

6. Land, Roads, Buildings and Pulp Mill Plant & Machinery of Unit - CPM were revalued as on 30.09.1976. The revaluation in respect of these assets (other than Land and Roads) were updated and Plant & Machinery of Paper Machine I & II and Railway Sidings were revalued as on 31.3.1994 based on current replacement cost by the approved valuers appointed for the purpose. As a result, the book value of such assets has been increased by Rs. 42.27 Crore, which has been transferred to Revaluation Reserve during the year ended 31.3.1994.

7. a) Loans and Advances includes loans of Rs. 20.98 Crore (previous year Rs. 23.48 Crore) to JK Paper Employees'' Welfare Trust, a shareholder of the Company, {includes Short Term Loan Rs. 2.00 Crore (Previous year Rs. 2.00 Crore), Long Term Loan of Rs. Nil (Previous year Rs. 2.00 Crore) and a concessional loan of Rs. 18.98 Crore (Previous year Rs. 19.48 Crore)} and loan to employees of Rs. 0.45 Crore (Previous year Rs. 0.65 Crore) in the ordinary course of business and as per service rules of the Company. b) The Company entered in to an arrangement with JK Enviro-Tech Limited to process its Lime sludge and convert it to Lime on a cost plus basis to meet the pollution control norms under CREP. Loans and Advances include Rs. 15.06 Crore (Previous year Rs. 6.19 Crore) against future supplies.

8. a) Sales include export incentives of Rs. 3.91 Crore (Previous year Rs. 2.76 Crore).

b) Discount includes Trade Discount Rs 54.19 Crore (Previous year Rs. 53.46 Crore).

9. Interest Income includes Rs. 1.03 Crore (Previous year Rs 5.15 Crore) on Deposits with banks, Rs. 0.06 Crore (Previous year Rs. 0.39 Crore) on Income Tax refund and Rs. 7.72 Crore (Previous year Rs. 11.67 Crore) on others.

10. Capital Work in progress includes machinery, building under construction and the following expenses pending allocation/capitalization.

11. a) Future minimum lease payments under non-cancelable operating leases as on 31st March, 2013 are Rs. 0.04 Crore - Rs. 0.04 Crore within one year and Rs. Nil later than one year but not later than five years (Previous year Rs. 0.10 Crore - Rs. 0.05 Crore within one year and Rs. 0.05 Crore later than one year but not later than five years).

b) Future minimum lease payments under non-cancelable Finance leases as on 31st March, 2013 are Rs. 1.64 Crore - Rs. 0.47 Crore within one year and Rs. 1.17 Crore later than one year but not later than five years (Previous year Rs. Nil) and their present value as on 31st March, 2013 are Rs. 1.39 Crore - Rs. 0.35 Crore within one year and Rs. 1.04 Crore later than one year but not later than five year (Previous year Rs. Nil).

12. Based on information so far available in respect of MSME (as defined in ''The Micro Small & Medium Enterprises Developments Act, 2006) there is no delay in payment of dues to such enterprises during the year and there is no such dues payable at the end of the period.

13. Consumption of Stores, Spares is net of scrap sale of Rs. 5.29 Crore (Previous year Rs. 3.54 Crore).

14. a) In accordance with Announcement issued by the Institute of Chartered Accountants of India all outstanding derivatives except covered under AS 11 (revised 2003) are marked to market on Balance Sheet date and there is gain of Rs. 0.18 Crore - reversal of previously recognised MTM Losses (Previous year Loss of Rs. 0.42 Crore) which has been recognized in Statement of Profit and Loss.

b) Forward contract outstanding for purpose of hedging as at Balance Sheet date:

c) Nominal amounts of Currency and Interest Rate Swaps for hedging entered into by the Company and outstanding at end of the year is Rs. 198.12 Crore (Previous year Rs. 227.02 Crore).

d) Foreign currency exposure not hedged as at Balance Sheet date:

15. Disclosure as required under ''Related Party Disclosures'' (AS 18) issued by The Institute of Chartered Accountants of India are as below:

a. List of Related Parties

i. Subsidiaries (Wholly Owned)

- Songadh Infrastructure & Housing Ltd.

- Jaykaypur Infrastructure & Housing Ltd.

ii. Joint Venture

- Oji JK Packaging Pvt. Ltd.

iii. Associate

- JK Enviro-Tech Ltd.

iv. Enterprise over which KMP''s have significant influence

- Habras International Limited

v. Key Management Personnel (KMP)

- Shri Hari Shankar Singhania* - Chairman

- Shri Harsh Pati Singhania - Managing Director

- Shri Om Prakash Goyal - Whole-time Director

* Deceased on 22nd February, 2013.

16. During the year the Company has entered into Joint Venture for the purpose of manufacturing and sale of corrugated packaging products with Oji Holding Corporation, Japan and Marubeni Corporation, Japan. Accordingly "Oji JK Packaging Pvt. Ltd." has become a Joint Venture (JV) in India consisting 60% holding by Oji Holding Corporation, Japan, 20% holding by Marubeni Corporation, Japan and 20% holding by the Company. The Company has subscribed Rs. 2.40 Crore as it''s share of Equity in JV. There has been no operation in the JV Company during the year except issue of share capital, hence the requirement of AS 27 does not arise.

17. Exceptional Items represents provision of earlier periods no longer required.

18. The proceeds of the Right issue and FCCB have been fully utilized for the expansion project.

19. Previous year''s figures have been re-grouped/re-arranged wherever necessary.

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Mar 31, 2012

(a) (i) Equity Shares:

The equity shareholders have:- - The right to receive dividend out of balance of net profits remaining after payment of dividend to the preference shareholders. The dividend proposed by Board of Directors is subject to approval of shareholders in the ensuing general meeting.

- The Company has only one class of Equity Shares having face value of Rs. 10/- each and each shareholder is entitled to one vote per share.

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

(ii) Preference Shares:- The cumulative redeemable preference shareholders have:- - The right to receive a fixed cumulative preferential dividend at specified rate on the paid up capital.

- The right to receive arrears of cumulative dividend, if any, whether earned or declared or not, at time of redemption of the said shares, and,

- The right in a winding up to have the capital paid up on such shares and the arrears, if any, of the said preferential dividend, whether earned or declared or not, be paid off in priority to any payment of capital on equity shares. However, it shall not confer the right to any further participation in the profits or assets of the Company.

- The right to vote, in respect of such capital, in proportion as paid up preference share capital bears to the total paid up equity capital only on resolutions directly affecting their rights and on every resolution on non-payment of dividend for an aggregate period of not less than two years.

Terms of Redemption: The Company has redeemed 10% Cumulative Redeemable Preference Shares (Series F) of Rs. 0.06 Crore on 30th June, 2011 along with premium on redemption of Rs. 5.46 Crore. Further 10% Cumulative Redeemable Preference Shares (Series G) of Rs 0.03 Crore are redeemable on 30th June 2012 along with Premium on redemption of Rs. 5.46 Crore.

Notes:

(a) During the year 5,84,70,686 Equity Shares have been issued at a premium of Rs. 32/- per share.

(b) (i) Adjusted Premium on Redemption of Preference Shares Rs. 5.46 Crore (Previous year Rs. 5.46 Crore). (ii) Share issue expenses on account of Rigths Issue Rs. 2.80 Crore (Previous year Nil).

(c) (i) Rs. 0.19 Crore to Statement of Profit and Loss towards Additional Depreciation arising out of revaluation of Fixed Assets (Previous year Rs. 0.21 Crore).

(ii) Pursuant to the Scheme of Arrangement, Current year Rs. Nil (Previous year Rs. 1.42 Crore).

(d) (i) Transfer from Surplus in Statement of Profit and Loss - Current year Rs. 2.50 Crore (Previous year Rs. 11.00 Crore).

(ii) Pursuant to the Scheme of Arrangement towards adjustment of Deferred Tax Liability Current year Rs. Nil (Previous year Rs. 4.53 Crore).

(e) Dividend proposed @ Rs. 1.50/- per Equity Share and @ Rs. 10/- per Preference Share.

Notes:

(a) Term Loans of Rs. 307.43 Crore (FIs – Rs. 73.63 Crore and Banks Rs. 233.80 Crore) are secured by means of first pari passu mortgage/charge on the fixed assets of the Company. Out of the above Term Loan Rs. 107.65 Crore (FIs - Rs. 70.25 Crore and Banks Rs. 37.40 Crore) are further secured by second charge on the current assets of the Company. These Term Loans are/shall be repayable as under :-

(i) Term Loans aggregating to Rs. 22.46 Crore are repayable in 3 equal annual instalments from June-2012 to June-2014,

(ii) Term Loan of Rs. 37.86 Crore is repayable in 9 half-yearly instalments from June-2012 to June-2016,

(iii) Term Loans aggregating to Rs. 89.06 Crore are repayable in total 28 equal half-yearly instalments from June-2012 to June-2018,

(iv) Term Loans aggregating to Rs. 130.17 Crore are repayable in total 51 equal quarterly instalments from April-2012 to March-2018,

(v) Term Loans aggregating to Rs. 4.48 Crore are repayable in June 2012,

(vi) Term Loan of Rs. 23.40 Crore is repayable in 26 equal monthly instalments from April-2012 to May-2014.

(b) Terms Loans of Rs. 393.53 Crore (FIs – Rs. Nil, Banks Rs. 393.53 Crore) are secured by means of first pari passu mortgage/charge on the fixed assets, both present and future, of Unit JKPM of the Company. These Term Loans are/shall be repayable as under :-

(i) Term Loans aggregating to Rs. 95.00 Crore are repayable in total 25 equal quarterly instalments from September-2014 to December-2020,

(ii) Term Loans aggregating to Rs. 298.53 Crore are repayable in total 50 equal half-yearly instalments from March-2013 to March-2023,

(c) Certain charges have been created against which loan disbursement partially/yet to be availed.

(d) Certain charges are in the process of satisfaction.

(e) Secured Terms Loans from Financial Institutions and Banks include Rs. 403.57 Crore foreign currency loans.

(f) Un-secured Term Loan from Bank of Rs. 2.43 Crore is repayable in 4 equal half yearly instalments from Apr-2012

(g) FCCB's of EURO 35 Million @ 6.455% issued on 30th May, 2011 are convertible into equity shares of the Company at an initial conversion price of Rs. 65 per share, subject to price adjustment as per agreement, after 3 years and 6 months from the date of issue. If not converted then the FCCBs will be redeemed at par between 15th May 2016 to 15th May 2018 in 5 half yearly instalments.

(h) Public Deposits are due for repayment in 2012-13, 2013-14 & 2014-15.

Note:

Working Capital Borrowings are secured by hypothecation of Stores, Raw Materials, Finished Goods, Stock- in-Process and Book Debts. The same are further secured by a second charge on the movable and immovable assets of the Company.

# Includes Raw Materials in transit Rs. 0.69 Crore (Previous year Rs. 0.02 Crore) and Stores and Spares in transit Rs. 0.26 Crore (Previous year Rs. 0.06 Crore).

$ Includes Pulp in process Rs. 2.87 Crore (Previous year Rs. 1.61 Crore) and Semi Finished Goods Rs.11.64 Crore (Previous year Rs. 7.30 Crore).

1. Estimated amount of contracts remaining to be executed on Capital Account (Net of Advances) Rs. 668.29 Crore (Previous year Rs. 1,107.06 Crore) and export commitments against import of capital goods under EPCG scheme Rs. 364.81 Crore (Previous year Nil).

2. Contingent liabilities in respect of claims not acknowledged and not provided for, are as follows:

Rs. in Crore (10 million) 31st March, 2012 31st March, 2011

(a) Excise duty liability in respect of matters in appeal 9.83 9.62

(b) Sales tax liability in respect of matters in appeal 3.69 3.88

(c) Other Matters 27.78 11.75

In respect of certain disallowances and additions made by the Income Tax Authorities, appeals are pending before the Appellate Authorities and adjustment, if any, will be made after the same are finally determined.

3. The Company has entered into a Take or Pay agreement for the purpose of sourcing lime from JK Enviro- Tech Ltd. The Company has given an undertaking that on the happening of certain events, it will takeover Loan taken by JK Enviro-Tech Ltd. from IDFC Ltd. of the value of Rs. 40 Crore.

4. In respect of levy of Octroi pertaining to Unit Central Pulp Mills by Songadh Group Gram Panchayat, the Company had paid Rs. 1.25 Crore till 31st March, 1997 under protest and also created a liability for the similar amount. As the matter is still pending in the court of law, the necessary adjustment, if any, would be made after its disposal.

5. The Company has only one business segment i.e. Paper and Board and geographical reportable segment i.e. Operations within India, hence Segment Reporting as defined in Accounting Standard (AS – 17) is not required.

6. Land, Roads, Buildings and Pulp Mill Plant & Machinery of Unit - Central Pulp Mills were revalued as on 30.09.1976. The revaluation in respect of these assets (other than Land and Roads) were updated and Plant & Machinery of Paper Machine I & II and Railway Sidings were revalued as on 31.3.1994 based on current replacement cost by the approved valuers appointed for the purpose. As a result, the book value of such assets had been increased by Rs. 42.27 Crore, which had been transferred to Revaluation Reserve during the year ended 31.3.1994.

7. Loans and Advances includes loans of Rs. 23.48 Crore (previous year Rs. 23.48 Crore) to JK Paper Employees' Welfare Trust, a shareholder of the Company, {includes Long Term Loan Rs. 2.00 Crore (Previous year Rs. 2.00 Crore) and a concessional loan of Rs. 19.48 Crore (Previous year Rs. 19.48 Crore)} & to Body Corporate Rs. Nil (Previous year Rs. 0.50 Crore) and loan to employees Rs. 0.65 Crore (Previous year Rs. 0.80 Crore) in the ordinary course of business and as per service rules of the Company.

8. (a) Sales include export incentives of Rs. 2.76 Crore (Previous year Rs. 3.15 Crore). (b) Discount includes Trade Discount Rs. 53.46 Crore (Previous year Rs. 51.99 Crore).

(b) Defined Benefit Plans –

Gratuity Expense Rs. 1.52 Crore (Previous year Rs. 2.29 Crore) has been recognized in "Salaries, Wages, Bonus and Gratuity etc." under Note 25.

Amount recognized as an expense and included in Note 25 & Note 46 below, item "Contribution to Provident and Other Funds" Rs. 5.17 Crore (Previous year Rs. 4.87 Crore).

Pending the issuance of Guidance Note from the Institute of Actuaries of India, the Company's actuary has expressed his inability to reliably measure the provident fund liability.

(c) Defined Contribution Plans –

Amount recognized as an expense and included in Note 25 item "Contribution to Provident and Other Funds" Rs. 2.10 Crore (Previous year Rs. 2.05 Crore) for Superannuation Fund.

(d) Other long-term benefits –

Amount recognized as an expense and included in Note 25 item "Salaries, Wages, Bonus and Gratuity etc." Rs. 0.99 Crore (Previous year Rs. 2.08 Crore) for Long Term Compensated Absences.

(e) The expected return on plan assets is determined considering several applicable factors mainly the composition of the plan assets held, assessed risk of assets management, historical results on plan assets and the policy for plan assets management.

(f) The estimates of future salary increase, considered in actuarial valuation, after taking account of inflation, seniority, promotion and other relevant factors, such as supply and demand in the employment market.

9. Interest Income includes Rs. 5.15 Crore (Previous year Rs 0.81 Crore) on Deposits with banks, Rs. 0.39 Crore (Previous year Rs. 0.14 Crore) on Income Tax refund and Rs. 11.67 Crore (Previous year Rs. 6.52 Crore) on others.

10. Capital Work in progress includes machinery, building under construction and the following pre-operative expenses pending allocation/capitalization.

11. Future minimum lease payments under non-cancelable operating leases as on 31st March, 2012 are Rs. 0.10 Crore - Rs. 0.05 Crore within one year and Rs. 0.05 Crore later than one year but not later than five years (Previous year Rs. 0.18 Crore - Rs. 0.06 Crore within one year and Rs. 0.12 Crore later than one year but not later than five years).

12. Based on information so far available in respect of MSME (as defined in 'The Micro Small & Medium Enterprises Developments Act, 2006) there is no delay in payment of dues to such enterprises during the year and there is no such dues payable at the end of the period.

13. Consumption of Stores and Spares is net of scrap sale of Rs. 3.54 Crore (Previous year Rs. 4.38 Crore).

14. (a) In accordance with Announcement issued by the Institute of Chartered Accountants of India all outstanding derivatives except covered under AS 11 (revised 2003) are marked to market on Balance Sheet date and there is loss of Rs. 0.42 Crore (Previous year gain of Rs. 0.47 Crore -reversal of previously recognised MTM Losses) which has been recognized in Statement of Profit and Loss.

(b) Nominal amounts of Currency and Interest Rate Swaps for hedging entered into by the Company and outstanding at end of the year is Rs. 227.02 Crore (Previous year Rs.115.05 Crore).

*Net of Receivables Euro 3,311.00 - Rs. 0.02 Crore (Previous year Euro 3,311.00 -Rs. 0.02 Crore) and Sterling Pound Nil – Rs. Nil (Previous year Sterling Pound 510.00 – Rs. 36,667/-).

15. Research and Development expenditure amounting to Rs. 1.31 Crore (Previous year Rs. 1.04 Crore) has been charged to Statement of Profit and Loss.

16. Amount Paid to Auditors (including service tax):

(b) Based on the past performance and current plans, the Company expects continue to generate taxable income which will enable it to utilise MAT credit entitlement.

(c) During the previous year Company had recognized additional MAT credit entitlement of Rs. 0.31 Crore related to earlier year.

17. Disclosure as required under 'Related Party Disclosures' (AS 18) issued by The Institute of Chartered Accountants of India are as below:

(a) List of Related Parties

(i) Subsidiaries (Wholly Owned)

- Songadh Infrastructure & Housing Ltd

- Jaykaypur Infrastructure & Housing Ltd (ii) Associate

- JK Enviro-Tech Ltd

(iii) Enterprise over which KMP's have significant influence

- Habras International Ltd

Key Management Personnel (KMP):

The remuneration paid to Chairman Rs. 2.66 Crore (Previous year Rs. 5.73 Crore), Managing Director Rs. 2.66 Crore (Previous year Rs. 6.33 Crore) and Whole Time Director Rs. 1.43 Crore (Previous year Rs. 1.84 Crore). The remuneration paid to the Managerial Personnel by way of minimum remuneration, in terms of the appointment, exceeds the limit prescribed under Section 309(3) of the Companies Act 1956, by Rs. 1.30 Crore, this is subject to requisite approvals from the Central Government of India.

# includes Rs. 3.54 Crore Scrap Sales (Previous Year Rs. 4.38 Crore) and Rs. 0.10 Crore grouped under Note No. 46 in other heads of account (Previous Year Rs. 0.26 Crore).

18. (a) The Company has raised Rs. 245.58 Crore through Rights Issue of Equity Shares and Rs. 226.14 Crore (Euro 35 Million) by issue of unsecured & unlisted Foreign Currency Convertible Bonds (FCCBs). Out of the above, Rs. 298.27 Crore (including Rights Issue Rs. 148.27 Crore) have been deployed for the project. The balance Rs. 173.45 Crore have been invested in mutual fund and fixed deposits with Banks, (b) During the year, Share Issue Expenses of Rs. 2.80 Crore have been charged from Securities Premium Account in accordance with Section 78 of the Companies Act, 1956, as compared to earlier policy of charging to Statement of Profit and Loss.

19. Current year accounts have been prepared in accordance with the Revised Schedule–VI and previous year's figures have been re-grouped/re-classified accordingly.

Note:

1. Previous year's figures have been re-grouped / re-arranged wherever necessary.

Note: The Ministry of Corporate Affairs, Government of India, New Delhi vide its General Circular No. 2/2011 dated 8th Feb. 2011, issued under Section 212 (8) of the Companies Act, 1956 has granted a general exemption from attaching the accounts of Subsidiary Companies. However, annual accounts of the Subsidiary Companies and the related detailed information shall be made available to the shareholders of the Holding and Subsidiary Companies seeking such information at any point of the time. The annual accounts of the Subsidiary Companies are also available for inspection by any shareholder at the Registered and Head Office of the Company and that of the Subsidiary Companies concerned.

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Mar 31, 2011

1. Estimated amount of contracts remaining to be executed on capital account (Net of Advances) Rs. 1,10,706.21 Lac (Previous year Rs. 1,139.98 Lac).

2. Contingent liabilities in respect of claims not acknowledged as debts are as follows:

Rs. in Lac (0.1 million)

31st March, 2011 3 Ist March, 2010

a) Excise duty liability in respect of matters in appeal 961.59 271.91

b) Sales tax liability in respect of matters in appeal 387.69 182.27

c) Other Matters I,175.02 1,199.15

Above claims are likely to be decided in favour of the company, hence, not provided for.

3. a) In respect of certain disallowances and additions made by the Income Tax Authorities, appeals are

pending before the Appellate Authorities and adjustment, if any, will be made after the same are finally determined.

b) The Company has entered into a Take or Pay agreement for the purpose of sourcing lime from JK Enviro-tech Ltd.The Company has given an undertaking that on the happening of certain events.it will takeover loan taken byJK Enviro-tech Ltd. from IDFC Ltd. of the value of Rs. 40 Crore.

4. In respect of levy of Octroi pertaining to Unit - CPM by Songadh Group Gram Panchayat, the Company has paid Rs. 125.07 Lac till 3 Ist March 1997 under protest and also created a liability for the similar amount. As the matter is still pending in the court of law, the necessary adjustment, if any, would be made after its disposal.

5. Pursuant to the Scheme of Arrangement sanctioned by the Honble High Courts of Gujarat & Orissa under section 391 to 394 of the Companies Act, 1956 which has become effective on 20th January 2011, CPM Staff Housing Undertaking and JKPM Staff Housing Undertaking of the Company have been transferred and vested to Songadh Infrastructure & Housing Limited (SIHL) and Jaykaypur Infrastructure & Housing Limited (JIHL) respectively on a going concern basis w.e.f. Ist April 2009, as a result

(ii) The Company carried on the business of the above two Housing Undertaking w.e.f. Ist April 2009 till 20th Jan 2011 for and on behalf of SIHL and JIHL.

(iii) The Deferred Tax Liability of Rs. 452.71 Lacs has been adjusted against the General Reserve.

(iv) Based upon an agreement, the Company has reimbursed all the expenses incurred, during Ist April, 2009 to 20th January, 2011 by SIHL and JIHL.

6. The Company has only one business segment i.e. Paper and Boards and geographical reportable segment i.e. Operations within India, hence Segment Reporting as Defined in Accounting Standard (AS – 17) is not required.

7. Land, Roads, Buildings and Pulp Mill Plant & Machinery of Unit - CPM were revalued as on 30.09.1976. The revaluation in respect of these assets (other than Land and Roads) were updated and Plant & Machinery of Paper Machine I & II and Railway Sidings were revalued as on 31.3.1994 based on current replacement cost by the approved valuers appointed for the purpose. As a result, the book value of such assets has been increased by Rs. 4,227.24 Lac, which has been transferred to Revaluation Reserve during the year ended 31.3.1994.

8. Loans and Advances are net of provisions for doubtful advances of Rs. 49.40 Lac (Previous year Rs. 53.04 Lac) and includes loans of Rs. 2,348.45 Lac (previous year Rs. 2,848.45 Lac) to JK Paper Employees’ Welfare Trust, a shareholder of the Company, {includes concessional loans of Rs. 1,948.45 Lac (Previous year Rs. 2,248.45 Lac)}, loans to JK Enviro-tech Limited (an Associate) Rs. 2,655.31 Lac (Previous year Rs. 2,739.27 Lac), Loan to subsidiaries Rs. 4,250.00 Lac (Previous year Nil) & to body corporate Rs. 50.00 Lac (Previous year Rs. 50.00 Lac) and loan to employees Rs. 79.86 Lac (Previous year Rs. 87.17 Lac) in the ordinary course of business and as per service rules of the Company.

Maximum amount outstanding from employees at any time during the year were Rs. 102.98 Lac (Previous year Rs. 98.57 Lac).

9. a) Sales include export incentives of Rs. 314.90 Lac (Previous year Rs. 205.80 Lac).

b) Discount includes Trade Discount Rs 5,198.92 Lac (Previous year Rs. 5,046.08 Lac) and other than Trade Discount Rs 10,060.76 Lac (Previous year Rs 9,922.03 Lac).

(b) Defined Benefit Plans -

Gratuity Expense Rs. 229.08 Lac (Previous year Rs. 497.60 Lac) has been recognized in "Salaries,Wages, Bonus and Gratuity etc." under Schedule 14.

Amount recognized as an expense and included in Schedule 14 & Note 23 below, item "Contribution to Provident and Other Funds" Rs. 487.27 Lac (Previous year Rs. 458.36 Lac).

Pending the issuance of Guidance Note from the Institute of Actuaries of India, the Company’s actuary has expressed his inability to reliably measure the provident fund liability.

(c) Defined Contribution Plans –

Amount recognized as an expense and included in Schedule 14 item "Contribution to Provident and Other Funds” Rs. 204.58 Lac (Previous year Rs. 192.61 Lac) for Superannuation Fund.

(d) Other long-term benefits –

Amount recognized as an expense and included in Schedule 14 item "Salaries, Wages, Bonus and Gratuity etc.” Rs. 208.35 Lac (Previous year Rs. 132.27 Lac) for long term compensated absences.

(e) The expected return on plan assets is determined considering several applicable factors mainly the composition of the plan assets held, assessed risk of assets management, historical results on plan assets and the policy for plan assets management.

(f) The estimates of future salary increase, considered in actuarial valuation, take account of infl ation, seniority, promotion and other relevant factors, such as supply and demand in the employment market.

11. (a) Miscellaneous Income includes dividend income of Rs. 227.18 Lac (Previous year Rs. 38.79 Lac).

(b) Interest Income includes Rs. 81.28 Lac (Previous year Rs. 77.16 Lac) on deposits with banks, Rs. 13.32 Lac (Previous year Rs. 86.12 Lacs) on Income Tax refund & Rs. 651.90 Lac (Previous year Rs. 667.44 Lac) on others.

13. Stocks of Stores & Spares and Raw Material include in-transit Rs. 75.48 Lac (Previous year Rs. 227.07 Lac).

14. Sundry Debtors exceeding six months are net of provisions for doubtful debts of Rs. 1,052.22 Lac (Previous year Rs. 1,006.86 Lac).

15. Future minimum lease payments under non-cancelable operating leases as on 31st March, 2011 are Rs. 17.70 Lac - Rs. 5.57 Lac within one year and Rs. 12.13 Lac later than one year but not later than fi ve years (Previous year Rs. 8.22 Lac - Rs. 8.22 Lac within one year and Nil later than one year but not later than fi ve years).

16. (a) Based on information so far available in respect of MSME (as defined in The Micro Small & Medium

Enterprises Developments Act, 2006) there is no delay in payment of dues to such enterprises during the year and there is no such dues payable at the end of the year. (b) The Balances of certain Advances, Security Deposits, Creditors and Other liabilities are in the process of confirmation/reconciliation.

17. Consumption of Stores, Spares and Chemicals is net of scrap sale of Rs. 438.13 Lac (Previous year Rs. 298.62 Lac).

18. (a) In accordance with Announcement issued by the Institute of Chartered Accountants of India all

outstanding derivatives except covered under AS 11 (revised 2003) are mark to market on Balance Sheet date and there is gain of Rs. 47.25 Lac (reversal of previously recognised MTM Losses) (Previous year loss of Rs. 183.83 Lac) which has been recognized in Profit & Loss Account.

(c) Nominal amounts of Currency and Interest Rate Swaps for hedging entered into by the Company and outstanding at end of the year is Rs. 11,504.52 Lac (Previous year Rs. 12,706.88 Lac)

19. Research and Development expenditure amounting to Rs. 104.21 Lac (Previous year Rs. 88.24 Lac) has been charged to Profit and Loss Account.

25. Disclosure as required under Related Party Disclosures (AS 18) issued by The Institute of Chartered Accountants of India are as below: a) List of Related Parties

i. Subsidiaries (Wholly Owned)

- Songadh Infrastructure & Housing Ltd

- Jaykaypur Infrastructure & Housing Ltd ii. Associate

- JK Enviro-tech Limited

iii. Key Management Personnel (KMP)

- Shri Hari Shankar Singhania - Chairman

- Shri Harsh Pati Singhania - Managing Director

- Shri Om Prakash Goyal - Whole-time Director

iv. Enterprise over which KMPs have significant influence

- Habras International Limited

30. The Company has on 14th April, 2011, executed subscription agreements with certain multilateral fi nancial institutions, for the issuance of unsecured unlisted FCCBs (carrying interest rate of 6 month Euribor + 4.75%) for an aggregate amount not exceeding Euro 35 million (approximately Rs. 225 crores) on a private placement basis. The FCCBs which will be issued are convertible into equity shares of the Company at an initial conversion price of Rs. 65 per share, subject to price adjustment as per agreement, after 3 years and 6 months from the date of issue, and if FCCBs not converted than will be redeemed at par between 15th May, 2016 to 15th May, 2018.

31. The Company has filed Draft Letter of Offer for Right issue of shares on 31st Jan, 2011 to SEBI.

32. Previous years figures have been re-grouped/re-arranged wherever necessary.

---

Mar 31, 2010

1. Estimated amount of contracts remaining to be executed on capital account (Net of Advances) Rs. 1,139.98 Lac (Previous year Rs. 214.08 Lac).

2. Contingent liabilities in respect of claims not acknowledged as debts are as follows:

Rs. in lac (0.1 million) 31st March, 2010 31st March, 2009

a) Excise duty liability in respect of matters in appeal 271.91 300.95

b) Sales tax liability in respect of matters in appeals 182.27 249.84

c) Other Matters 1,199.15 1,553.86

Above claims are likely to be decided in favour of the company, hence, not provided for.

3. a) In respect of certain disallowances and additions made by the Income Tax Authorities, appeals are pending before the Appellate Authorities and adjustment, if any, will be made after the same are fi nally determined.

b) The Company has entered into a Take or Pay agreement for the purpose of sourcing lime from JK Enviro- tech Ltd. The Company has given an undertaking that on the happening of certain events, it will takeover Loan taken by JK Enviro-tech Ltd. from IDFC Ltd. of the value of Rs. 40 Crore.

4. In respect of levy of Octroi pertaining to Central Pulp Mills Unit by Songadh Group Gram Panchayat, the Company has paid Rs.125.07 Lac till 31st March 1997 under protest and also created a liability for the similar amount. As the matter is still pending in the court of law, the necessary adjustment, if any, would be made after its disposal.

5. The Scheme of Arrangement for transfer and vesting of CPM Staff Housing Undertaking of the Company to Songadh Infrastructure & Housing Limited and of JKPM Staff Housing Undertaking of the Company to Jaykaypur Infrastructure & Housing Limited has been fi led with the High Courts of Gujarat & Orissa for their approval, pursuant to Sections 391 to 394 of the Companies Act. Upon sanction of the said Scheme by the above said Courts, CPM Staff Housing Undertaking of the Company shall be transferred to Songadh Infrastructure & Housing Limited and JKPM Staff Housing Undertaking of the Company shall be transferred to Jaykaypur Infrastructure & Housing Limited w.e.f. the appointed date as per the said Scheme, i.e, April 1, 2009. Pending requisite approval, no effect has been given of the said scheme in these accounts.

6. The Company has only one business segment i.e. Paper and Boards and geographical reportable segment i.e. Operations within India, hence Segment Reporting as defi ned in Accounting Standard (AS–17) is not required.

7. Land, Roads, Buildings and Pulp Mill Plant & Machinery of Unit - Central Pulp Mills were revalued as on 30.09.1976. The revaluation in respect of these assets (other than Land and Roads) were updated and Plant & Machinery of Paper Machine I & II and Railway Sidings were revalued as on 31.3.1994 based on current replacement cost by the approved valuers appointed for the purpose. As a result, the book value of such assets has been increased by Rs. 4,227.24 Lac, which has been transferred to Revaluation Reserve during the year ended 31.3.1994.

8. Loans and Advances are net of provisions for doubtful advances of Rs. 53.04 Lac (Previous year Rs. 24.53 Lac) and includes loans of Rs. 2,848.45 Lac (previous year Rs. 3,198.45 Lac) to JK Paper Employees’ Welfare Trust, a shareholder of the Company, (includes concessional loans of Rs. 2,248.45 Lac (Previous year Rs. 2,398.45 Lac)), loans to JK Enviro-Tech Limited (an Associate) Rs. 2,739.27 Lac (Previous year Rs. 1,996.40 Lac) & to body corporate Rs. 50.00 Lac (Previous year Rs. 50.00 Lac) and loan to employees of Rs. 87.17 Lac (Previous year Rs. 49.15 Lac) in the ordinary course of business and as per service rules of the Company.

Maximum amounts outstanding from employees at any time during the year were Rs. 98.57 Lac (Previous year Rs. 71.43 Lac).

9. a) Sales include export incentives of Rs. 205.80 Lac (Previous year Rs. 285.56 Lac).

b) Discount includes Trade Discount Rs 5,046.08 Lac (Previous year Rs. 4,336.75 Lac) and other than Trade Discount Rs 9,922.03 Lac (Previous year Rs 8,272.79 Lac).

10. (a) Miscellaneous Income includes dividend income of Rs. 38.79 Lac (Previous year Rs. 1.74 Lac).

(b) Interest Income includes Rs. 77.16 Lac (Previous year Rs. 101.22 Lac) on deposits with banks, Rs. 86.12 Lac (Previous year Rs. 15.94 Lacs) on Income Tax refund & Rs. 667.44 Lac (Previous year Rs. 624.61 Lac) on others.

(c) Interest Expense in Schedule 17 includes Nil (Previous year Rs. 193.37) and other expenses in Schedule 16 includes Nil (Previous year Rs. 21.59 Lac) relates to prior-period.

11. Stocks of Stores & Spares and Raw Material include in-transit Rs. 227.07 Lac (Previous year Rs. 237.17 Lac).

12. Sundry Debtors exceeding six months are net of provisions for doubtful debts of Rs. 1,006.86 Lac (Previous year Rs. 412.71 Lac).

13. Future minimum lease payments under non-cancelable operating leases as on 31st March 2010 are Rs. 8.22 Lac - Rs. 8.22 Lac within one year and Nil later than one year but not later than fi ve years (Previous year Rs. 43.98 Lac - Rs. 28.60 Lac within one year and Rs. 15.38 Lac later than one year but not later than fi ve years).

14. (a) Based on information so far available with the company in respect of MSME (as defi ned in ‘The Micro Small & Medium Enterprises Developments Act, 2006) there is no delay in payment of dues to such enterprises during the year and there is no such dues payable at the end of the year.

(b) The Balances of certain Advances, Security Deposits, Creditors and Other liabilities are in the process of confi rmation/reconciliation

15. Consumption of Stores, Spares and Chemicals is net of scrap sale of Rs. 298.62 Lac (Previous year Rs. 297.42 Lac).

16. (a) In accordance with Announcement issued by the Institute of Chartered Accountants of India all outstanding derivatives except covered under AS 11 (revised 2003) are mark to market on Balance Sheet date and there is loss of Rs. 183.83 Lac (Previous year 63.21 Lacs) which has been recognized in Profi t & Loss Account.

(c) Nominal amounts of Currency and Interest Rate Swaps for hedging entered into by the Company and outstanding at year end is Rs. 12,706.88 Lac (Previous year Rs. 12976.55 Lac)

17. Research and Development expenditure amounting to Rs. 88.24 Lac (Previous year Rs. 61.68 Lac) has been charged to Profi t and Loss Account.

18. Disclosure as required under ‘Related Party Disclosures’ (AS 18) issued by The Institute of Chartered Accountants of India are as below: a. List of Related Parties i. Subsidiaries

- Songadh Infrastructure & Housing Ltd (Wholly Owned Subsidiary w.e.f 30th April 2009)

- Jaykaypur Infrastructure & Housing Ltd (Wholly Owned Subsidiary w.e.f 30th April 2009) ii. Associate

- JK Enviro-tech Limited

iii. Key Management Personnel (KMP)

- Shri Hari Shankar Singhania - Chairman

- Shri Harsh Pati Singhania - Managing Director

- Shri Om Prakash Goyal - Whole-time Director iv. Enterprise over which KMP’s have signifi cant infl uence

- Habras International Limited

19. Purchase of fi nished goods (Paper and Board) during the year 9,127 tonnes (Previous year – 23,060 tonnes).

20. Previous year’s fi gures have been re-grouped/re-arranged wherever necessary.