Accounting Policies of Nikita Greentech Recycling Ltd. Company

Mar 31, 2025

1. Corporate Information

Nikita Papers Limited is a closely neia pudiic Limited company initially incorporated as Private Limited company on
18.08.1989. It was subsequently converted into a Public Limited Company on 12.06.2003. The Company is engaged in
manufacture of Kraft paper and has been in existence for more than three decades with satisfactory business
performance.

The Company is having its registered office at A-10, First Floor, Near Deepali Chowk, Saraswati Vihar, Pitampura, New
Delhi 110034 and works at C-10, Industrial Estate, Panipat Road, Shamli-247776 (U.P.).

2. Basis of Preparation of Financial Statement:

The Financial Statements of the Company have been prepared under Historical Cost Convention on accrual basis of
accounting in accordance with the Generally Accepted Accounting principles (GAAP) in India. These Financial
Statements Comply in all material aspects with the Accounting standards (AS) notified under the Companies (Accounting
standards) Rules, 2006 (as amended), to the extent applicable, other pronouncement of the Institute of Chartered
Accountants of India and are in accordance with the provision of the Companies Act, 2013.

Company''s Financial Statements are presented in the Indian Rupees, which is also its functional currency.

3 Use of Estimates

The preparation of financial statements required the management to make estimates and assumptions that affect the
reported balance of assets and liabilities, revenues and expenses and disclosures relating to contingent liabilities. The
Management believes that the estimates used in the preparation of financial statements are prudent and reasonable.
Future results could differ from these estimates. Any revision of accounting estimates is recognized prospectively in the
current and future periods.

4. Presentation of financial statements:

The Balance Sheet and the Statement of Profit and Loss are prepared and presented in the format prescribed in the
Schedule III to the Companies Act, 2013 ("the Act"). The disclosure requirements with respect to items in the Balance
Sheet and Statement of Profit and Loss, as prescribed in the Schedule III to the Act, are presented by way of notes
forming part of accounts along with the other notes required to be disclosed under the notified Accounting Standards and
the Listing Agreement.

5. Revenue Recognition:

Revenue is recognized to the extent that it is probable that the economic benefits will flow to the Company and the

^a. revenue can be reliably measured.

Sales of Goods are accounted for when the sales of goods are completed on accrual basis on completion of transactions

b. of sales on delivery / passage of title to the customer which generally coincides with delivery. Sales shown in the
Statement of Profit & Loss are excluding GST

Income in respect of interest, insurance claims, export benefits, subsidy etc. is recognized to the extent the company is

^c. reasonably certain of its ultimate realization.

6. Propert Plant & Equipment:

Property, plant and equipment are stated at original cost net of tax/ duty credit availed, less accumulated depreciation and
accumulated impairment losses. All other repair and maintenance cost are recognized in the statement of the profit and
loss as incurred. The present value of the expected cost for the decommissioning of the asset after its use is included in
the cost of the respective asset if the recognition criteria for a provision are met.

Pre-operative expenditure incurred up to the date of commencement of commercial production is capitalized as part of
property, plant and equipment.

Capital work in progress includes property plant & equipment under installation/under development as at the balance
sheet date.

Property plant and Equipment and derecognized from the financial statement, either on disposal or when no economic
benefits are expected from its use or disposal, losses arising in the case of retirement of property, plant and equipment
and gain from thos arising from disposal of property, plant and equipment are recognized in the statement of profit and
loss in the year of occurrence.

Intangible Assets:

The Intangible Assets are treated as per AS - 26, for the purpose of Amortization.

7. Depreciation

Depreciation on all tangible assets has been provided on the basis of Written Down value method over the remaining useful lives
of assets as prescribed under Part "C" of Schedule II of Companies Act, 2013 except the categories of assets, in whose case the
life of the assets has been assessed as under based on technical advice, taking into account the nature of the asset, the
estimated usage of the asse, the operating conditions of the asset, past history of replacement, anticipated technological changes
and maintenance support etc accordingly the useful life of the referred property plant and equipment has been reviewed by
Chartered Engineer (CE).

Depreciation on addition is charged proportionately from the date of its acqu isition/installation.

8. Inventories

Inventories are measured at lower of cost or net realizable value. Cost of inventories comprises of cost of purchase, cost
of conversion and other costs incurred in bringing them to their respective present location and condition. Cost is
determined using Weighted average/ FIFO method.

9. Foreign Currency Transaction:

Transactions denominated in Foreign Currency are recorded at the exchange rates prevailing on the date when the
relevant transactions take place. The exchange difference arising there on i.e. Fluctuation Gains/Losses are recognized in
the profit and Loss statement. Monetary assets and liabilities denominated, in foreign currency at the Balance sheet date
are translated at the year-end rates.

10. Provisions for Current and Deferred Tax:

Provision is made for income tax liability estimated to arise on the results for the year at the current rate of tax in
accordance with Income Tax Act, 1961.

The differences that result between the profit considered for income taxes and the profit as per the financial statements
are identified, and thereafter a deferred tax asset or deferred tax liability is recorded for timing differences, namely the
differences that originate in one accounting period and reverse in another, based on the tax effect of the aggregate
amount being considered. The tax effect is calculated on the accumulated timing differences at the end of an accounting
period based on prevailing enacted or substantially enacted regulations. Deferred Tax Assets are recognized only if there
is reasonable certainty that they will be realized and are reviewed for the appropriateness of their respective carrying
values at each balance sheet date.

Minimum alternative Tax under the provisions of Income Tax Act,1961 is recognized as per Guidance Note on
Accounting for Credit Available in respect of Minimum Alternative Tax under the Income-tax Act, 1961, issued by Institute
of Chartered Accountants of India. The credit available under the Act in respect of MAT is recognized as an asset only
when and to the extent there is convincing evidence that the company will pay normal income tax during any period for
which the mat credit can be carried forward for set off against the normal tax liability.

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Mar 31, 2024

1. Corporate Information

Nikita Papers Limited is a closely nett Puolic Limned Company initially incorporated as Private Limited Company on 18.08.1989. It was
subsequently converted into a Public Umlted Company on 12 06.2003. The Company is engaged in manufacture of Kraft paper and has been In
existence for more than three decades with satisfactory business performance

The Company is having its registered office at A-10, First Floor. Near Doopall Chowk, Soreswati Vihar, Pitampura. New Delhi 110034 and works at
C-10, Industrial Estate. Panipat Road. Shamli-247778 (U P).

2. Basis of Preparation of Financial Statement;

The Financial Statements of the Company have been prepared under Historical Cost Convention on accrual basis ot accounting in accordance with
the Generally Accepted Accounting principles (GAAP) in India. These Financial Statements Comply In ail material aspects with the Accounting
s.ar.dards (AS) notified under the Companies (Accounting standards) Rules, 2006 (os amonded), to the extent applicable, other pronouncement of
the Institute of Chartered Accountants of India and are In accordance with the provision of the Companies Act. 2013.

Company''s Financial Statements are presented In the Indian Rupees, which is also >ts functional currency.

3 Use of Estimates

Tne preparation of financial statements required the management to make estimates and assumptions that affect the reported balance of assets
and liabilities revenues and expenses and disclosures relating to contingent liabilities. The Management believes that the estimates used in the
preparation of financial statements are prudent and reasonable Future results could differ from these estimates. Any revision of accounting
estimates is recognized prospectively In the current and future periods

4. Presentation of financial statements:

The Balance Sheet and the Statement of Profit and Loss are prepared and presented In the format prescribed In the Schedule III to the Companies
Act. 2013 (The Act"). The disclosure requirements with respect to items in the Balance Sheet and Statement of Profit and Loss, as prescribed In
the Schedule III to the Act. are presented by way of notes forming part of accounts along with the other notes required to be disclosed under the
notified Accounting Standards and the Listing Agreement.

5. Revenue Recognition:

Revenue is recognized to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably
‘ measured

_b Sates °^f Gooes are accounted for when the sales of goods are completed on accrual basis on completion of transactions of sales on delivery /
passage of tide to the customer which generally coincides with delivery Sales shown in the Statement of Profit & Loss are excluding GST

_c ¦ncome in respect of interest. Insurance claims, export benefits, subsidy etc. is recognized to the extent tne company is reasonably certain of its

ultimate realization.

6. Property Plant & Equipment:

Property, plant and equipment are slated at onginal cost net of tax/ duty credit availed, less accumulated depreciation and accumulated impairment
losses. AH other repair and maintenance cost are recognized in the statement of the profit and toss as incurred. The present value of the expected
cost for the decommissioning of the asset after its use is included in the cost of the respective 3sset if the recognition criteria for a provision are
met

Pre-operative expenditure incurred up to tne date of commencement of commercial production is capitalized as part of property, plant and
equipment

Copitai work in progress includes property plant & equipment under installation/undor development as at the balance sheet date.

Property plant and Equipment and derecognized from tne financial statement, either on disposal or when no economic benefits are expected from
rts use or disposal, losses arming in the case of retirement of property, plant and equipment and gain from thos arising from disposal of property,
plant and equipment are recognized In the statement of profit and loss In the year of occurrence.

7. Depreciation

Depreciation on all tangible assets has been provided on the basis of Written Down value method over the remaining useful lives of assets as
prescribed under Part ^rC^u of Schedule II of Companies Act, 2013 except the categories of assets, in whose case the life of the assets has been
assessed as under based on technical advice, taking into account the nature of tne asset, the estimated usage of tne asse, the operating
conditions of the asset, past history of replacement, ant-dpatod technological changes and maintenance support etc accordingly thB useful life of
the referred property plant and equipmont has been reviewed by Chartered Engineer (CE).

Depreciation on addition is charged proportionately from the date of its acquisibon/lnstallatlon.

8. Inventories

Inventories are measured at lower of cost or net realizable value. Cost of Inventories comprises of cost of purchase, cost of conversion and other
coats incurred in bringing them to their respective present location and condition Cost is determined using Weighted average/ FIFO method

9. Foreign Currency Transaction:

Transactions denominated in Foreign Currency are recorded at the exchange rates prevailing on tho date when the relevant transactions take
place The exchange difference arising there on i.e. Fluctuation Gains/Losses are recogntzed in the profit and Loss statement Monetary assets
and liabilities denominated. In foreign currency at the Balance sheet dale arc translated at the year-end rates

10. Provisions for Current and Deferred Tax:

Provision is mace for income tax liability estimated tc arise on the results for the year at the current rate of tax in accordance with Income Tax Act

1961.

The differences that result between the profit considered for income taxes and the profit as per the financial statements are identified, and
thereafter a deferred tax asset or deferred tax liability Is recorded for timing differences, namely the differences that originate in one accounting
period and reverse in another, based on tne tax effect of the aggregate amount being considered. The tax effect is calculated on the accumulated
timing differences al the end of an accounting period based on prevailing enacted or substantially enacted regulations. Deferred Tax Assets are
recogntzed only If tnere Is reasonable certainty that they will be realized and are reviewed for the appropriateness of their respective carrying
values at each balance sheet date.

Minimum alternative Tax under the provisions of Income Tax Ad,1661 is recognized as per Guidance Note on Accounting for Credit Available in
respect of Minimum Alternative Tax under the Income-tax Act, 1961, issued by Institute of Chartered Accountants of India. The credit available
under the Act in respect of MAT is recognized as an asset only when and to the extent there is convincing evidence that the company will pay
normal income tax during any poriod for which the mat credit can be carried forward for set off against the normal tax liability.