Notes to Accounts of Nikita Greentech Recycling Ltd.

Mar 31, 2025

11. Provisions, Contingent Liabilities and Contingent Assets:

Provisions are made for present obligations arising as a result of past events and it is probable that an outflow of
^a'' resources will be required to settle the obligation.

b . Contingent liabilities are not provided for but are disclosed by way of Notes on Accounts.
c . Contingent assets are neither accounted for nor disclosed by way of Notes on Accounts.

12. Investments:

Long Term Investments i.e. (Non-Current investments) are stated at cost. Provision for diminution in the value of Long
Term Investments is made only if such decline is other than temporary. Current investments are valued at cost.

13. Employee Benefits:

Liability in respect of retirement benefits is provided and/or funded and charged to Profit & loss A/c as follows:
s . Provision for contribution to defined contribution plan, recognized as expenses during the year as under.
b . Gratuity is accounted for on actuarial valuation basis.

The management has decided to apply pay-as-you-go method for payment of leave encashment. So, amount of leave
encashment will be accounted in the profit & loss A/c in the financial year in which the employee retires and provision will
c • not be made on yearly basis

14. Borrowing Costs:

Borrowing costs directly attributable to the acquisition or construction of qualifying assets are capitalized as part of the
^s • cost of asset up to the date when such asset is ready for its intended use.

borrowing costs include interest; amortization of ancillary costs incurred and exchange differences arising from foreign currency
_b borrowings to the extent they are regarded as an adjustment to the interest cost.

Costs in connection with the borrowing of funds to the extent not directly related to the acquisition of qualifying assets are
_c _ charged to the Statement of Profit and Loss over the tenure of the loan.

15. Leases

The Company leases certain machinery with contract terms of 5 years. These lease are short term in nature and thus are
treated as operating lease as per the lease documents.

And, lease rentals are recognized as an expense in the Statement of Profit & Loss on an accrual basis over the leased
term.

16. Cash Flow Statement

Cash flows are reported using indirect method, whereby profit before tax is adjusted for the effects of transactions of a
non-cash nature and any deferrals or accruals of past or future cash receipts or payments. The cash flow from regular
revenue generating, financing and investing activities of the Company is segregated. Cash and cash equivalents in the
balance sheet comprise cash at bank, cash/cheques in hand and FDRs & margin money with bank.

17. Segment reporting

"The Company is engaged only in the Business of Kraft Paper Manufacturing hence has only single reportable business
segment in the context of Accounting Standard 17 on Segment Reporting.

Therefore, no separate segment disclosures are required to be made by the Company.

18. Earnings Per Share (EPS)

Basic and Diluted Earning per Share are computed in accordance with AS 20-Earning Per Share. Basic earnings per
Equity Share is computed by dividing net profit after tax by the weighted average number of Equity Shares outstanding
during the year. The Diluted Earning per Share is computed using the weighted average number of Equity Shares and
Diluted Potential Equity Shares outstanding during the year.

19. Impairment of Financial and Non-Financial Assets

The Company assesses at each reporting date whether there is any objective evidence that a non-fin ancial asset or a
group of non-financial assets are impaired. If any such indication exists, the Company estimates the amount of
impairment loss. For the purpose of assessing impairment, the smallest identifiable group of assets that generates cash
inflows from continuing use that are largely independent of the cash inflows from other assets or groups of assets is
considered as a cash generating unit. If any such indication exists, an estimate of the recoverable amount of the individual
asset/cash generating unit is made. An impairment loss is calculated as the difference between an asset''s carrying
amount and recoverable amount. Losses are recognized in profit or loss and reflected in an allowance account. When
the Company considers that there are no realistic prospects of recovery of the asset, the relevant amounts are written off.
If the amount of impairment loss subsequently decreases and the decrease can be related objectively to an event
occurring after the impairment was recognized, then the previously recognized impairment loss is reversed through profit

20. Provisions and Contingent liabilities.

A provision is recognized when the Company has a present obligation as a result of past events and it is probable that an
outflow of resources will be required to settle the obligation, in respect of which reliable estimate can be made. Provisions
are not discounted to its present value and are determined based on best estimate required to settle the obligation at the
balance sheet date. These are reviewed at each balance sheet date and adjusted to reflect the current best estimates.

Contingent Liabilities are not recognized but are disclosed in the notes to accounts when there is possible obligation or a
present obligation that may, but probably will not, require an outflow of resources. When there is a possible obligation or a
present obligation that the likelihood of outflow of resources is remote. Contingent Assets are not recognized in the
Financial Statements.

21. Sundry Debtors, Sundry Creditors, unsecured loans and advances are subject to confirmation by the respective
parties and reconciliation. The impact of the differences, if any will be given in the year of settlement of accounts.

22. We have broadly reviewed the basis of compiling details & information & we have test checked whenever the
details/information compiled by the assesse.

Net profit or loss for the period, prior period items and changes in accounting policies

a. Net Profit or loss for the period and prior period items are shown separately in the Statement of Profit & Loss wherever
applicable.

b. Prior period items are income or expenses which arise in the current period as a result of errors or omissions in the
preparation of the financial statements of one or more prior periods

c. Extraordinary items are income or expenses that arise from events or transactions that are clearly distinct from the
ordinary activities of the enterprise and, therefore, are not expected to recur frequently or regularly.

24 Government Grant

Government grants are recognised where there is reasonable assurance that the grant will be received and all attached
conditions will be complied with. When the grant relates to an expense item, it is recognised as income on asystematic
basis over the periods that the related costs, for which it is intended to compensate, are expensed. When the grant
relates to an asset, the government grant related to assets is presented by deducting the grant in arriving at the carrying
amount of the asset.

During the Year, the management has recognised a government grant of INR 7.81 crores for the FY 2024-25 INR 7.50
Crores for the F.Y. 2023-24 in the profit and loss account under the policy Uttar Pradesh Industrial Investment and
Employment Promotion Policy 2017. This recognition has been made as the condition associated with the grant have
been duly compiled with and it is highly likely that the grant will be received from the government.

*GST demand pertains to F.Y. 2018-19 to 2021-22 which is under litigation was decided in favour of the Company by an order dated 12th
June 2025. As the order was received after the balance sheet date, it is treated as a non-adjusting event under AS 4. Accordingly, no
adjustment has been made in the financial statements, and the matter has been appropriately disclosed herein.

**The GST demand (excluding interest and penalty) pertains to Financial Years 2018-19, 2019-20, and 2020-21, for which the Company
has filed appeals against the respective orders with the appropriate appellate authorities.Pending the final outcome of the appeals, the
Company has deposited an amount of ? 21 Lakhs as a pre-deposit towards the said demands OF Rs. 24.96 Lacs, in accordance with the

***Axis Bank has adjusted foreclosure charges imposed by the bank at the time of takeover of financial facilited by HDFC bank Ltd, which
is under lititgation and no provision of expense has been booked in financial statements.

Note 32: Balances of Trade Payables, Trade Receivables and Advances as on 31st March, 2025 are subject to confirmation from theparties
concerned.

Note 37: Other Information

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

(ii) The company did not have any transactions with companies strike off.

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

(iv) The Company has not traded or Invested in Crypto currency or Virtual currency during the respective financial year.

(v) The Company has not been declared willful defaulter by any bank or financial Institution or other lender.

(vi) The company does not have any scheme of Arrangements which have been approved by the competent authority in terms of section 230
to 237 of the companies Act.

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

(a) directly or indirectly lend or invest in other persons or entities identified in any mannerwhatsoever by or on behalf of the company
(Ultimate Beneficiaries) or

(b) provide any gaurantee, security or the like to r on behalf of the ultimate beneficiaries

(viii) The Company has not received any fund from any person(s) or entitiy(ies), including foreign entities (Funding party) with the
understanding (weather record in writing or otherwise) that the company shall:

(a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the funding party
(Ultimate Beneficiaries) or

(b) provide any gaurantee, security or the like to r on behalf of the ultimate beneficiaries

(ix) Company is listed on NSE Emerge (SME) stock exchange as on 03-06-2025.

Note 38: Segment Reporting

Based on the guiding principles of the accounting standards on ''Segment Reporting'' (AS-17), notified under the Companies (Accounting Standards) Rules, 2014,
and the Companies (Accounting Standards) Amendment Rules, 2016, the company’s primary business segment is the manufacturing of Kraft Papers. Since the
company operates solely in India, i.e., in only one business and geographical segment, no further disclosures are required under AS-17.

Note 39: Material Regrouping

Appropriate regroupings have been made in the Statement of Assets and Liabilities, Statement of Profit and Loss and Statement of Cash Flows, wherever required,
by reclassification of the corresponding items of income, expenses, assets, liabilities and cash flows, in order to bring them in line with the accounting policies and
classification as per AS financial information of the Company for the year ended March 31,2024 prepared in accordance with Schedule III of Companies Act, 2013
and other applicable AS principles and the requirements of the Securities and Exchange Board of India (Issue of Capital & Disclosure Requirements) Regulations
2018, as amended.

Note 42: Employee benefit (AS-15)

In accordance with the Employee’s Provident Fund and Miscellaneous Provisions Act, 1952, eligible employees of
the Company are entitled to receive benefits in respect of provident fund, a defined contribution plan, in which both
employees and the Company make monthly contributions at a specified percentage of the covered employees’ salary.
The contributions, as specified under the law, are made to the employee provident fund organization (EPFO). As per
the Accounting standard on “Employee Benefits” (AS-15) (Revised 2005) issued by The Institute of Chartered
Accountants of India, the company has contributed to various employee benefits as under:-

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Mar 31, 2024

11. Provisions. Contingent Liabilities and Contingent Assets:

Provisions are made for present obligations arising as a result of past events and it Is probable that an outflow of resources will be required to settle
⁸ the obligation.

b. Contingent liabilities are not provided for but are disclosed by way of Notes cn Accounts.

_c Contingent assets are neither accounted for nor disclosed by way of Notes on Accounts.

12. Investments:

Long Term investments i e. (Non-Current investments) are stated at cost Provision for diminution in the value of Long Term Investments is made
only if such decline is other than temporary. Current investments are valued at cost

13 Employee Benefits:

Liability in iesoec! of retirement benefits is provided and/or funded and charged to Profit & loss A/c as follows;

s Provision for contribution to defined contribution plan, recognized as expenses during the year as under

b Gratuity is accounted for on actuarial valuation basis.

The management has decided to apply pay-as-you-go method for payment of leave encashment. So. amount of leave encashmont will be
^c accounted in the profit & less A''c in the financial year In which the employee retires and provision will not be made on yearly basis

14. Boo jwlog Costs:

_a Borrowing costs directly attributable to the acquisition or construction cf qualifying assets are capitalized as part of the cost of asset up to the date
when such asset is readv for its intended use,

borrowing costs include interest; amortization of ancillary costs incurred ana exchange differences arising from foreign currency borrowings to the
extent thoy are regarded as an adjustment to the interest cost

Costs In connection with me borrowing of funds to the extent not directly related to the acquisition of qualifying assets are charged to the
^w Statement of Profit and Loss over the tenure of the loan.

15. Leases

Leases where the lessor effectively retains substantially all tho risks and benefits of ownership of the leased item, are classified as operating
leases Operating Lease Payments are recognised as an expense in the Statement of Profit and Loss on a straight line Basis over the lease term

16. Cash Flow Statement

Casn flows are reported using indirect method, wnereby profit before tax is adjusted far the effects of transactions of a non-cash nature and any
deferrals or accruals of past or future casn receipts or payments. The cash flow from regular revenue generating, financing and investing activities
of the Company is segregated Cash and cash equivalents in the balance sheet comprise cash at bank, cash/cheques in hand and FDRs & margin

money with bank.

17. Segment reporting

The Company is engaged only in the Business of Kraft Paper Manufacturing hence has only single reportable business segment In Ihe context of
Accounting Standard 17 on Segment Reporting.

Therefore, no separate segment disclosures are required to be made by the Company.

18. Earnings Por Share (EPS)

Basic and Diluted Earning per Share are computed In accordance with AS 20-Earnlng Per Share. Basic earnings per Equity Share is computed by
dividing net profit after tax by the weighted average number of Equity Shares outstanding during tho year. The Diluted Earning per Share is
computed using the weighted average number of Equity Snares and Diluted Potential Equity Shares outstanding dunng the year.

19. Impairment of Financial and Non-Flnancial Assots

The Company assesses at each reporting date whether there is any objective evidence that a non-flnanciai asset cr a group of non-finanoal assets
are impaired If any such Indication exists, the Company estimates the amount of impairment loss For the purpose of assessing Impairment, the
smallest Identifiable group of assets that generates cash inflows from continuing use that are largely independent of the cash inflows from other
assets or groups of assets is cons>dered as a cash generating unit. If any such indication exists, an estimate of tho recoverable amount of the
individuel asset/cash generating unit is made An impairment loss is calculated as the difference between an asset''s carrying amount and
recoverable amount. Losses are recognized In profit or loss and reflected in an allowance account When tho Company considers that there are no
realistic prospects of recovery of tne asset. th8 relevant amounts are written off. If the amount of Impairment loss subsequently decreases and the
decrease can be related objectively to an event occurring after the impairment was recognized, then the previously recognized impairment loss is
reversed through profit or loss.

20. Provisions and Contingent liabilities.

A provision is recognized when the Company has a present obligation a3 a result of past events and it is probable that an outflow of resources will
be required to settie tne obligation, in respect of which reliable estimate can be made. Provisions are not discounted to Its present value and are
determined based on bost estimate required to sortie the obligation at the balance sheet date. These are reviewed at each balance sheet dale and
adjusted to reflect the current best estimates

Contingent Liabilities are not recognized but are disclosed in the notes to accounts when there Is possible obligation or a present obligation that
may, but probaDty will not, require an outflow of resources When there is a possible obligation or a present obligation that the likelihood of outflow
of resources 13 remote. Contingent Assets are not recognized In tho Financial Statements.

21. Sundry Debtors. Sundry Creditors, unsecured loans and advances are subject to confirmation by the respective parties and
reconciliation The impact of tne differences, if any will be given in the year of settlement of accounts.

22 We have broadly reviewed the basis of compiling details & information & we have tost cnecked whenever tne dotails/information
compiled by the assessB

23 Net profit or loss for the period, prior period items and changes In accounting policies

a Net Profit or loss for the period and prior period items are shown separately in tho Statement of Profit & Loss wherever applicable.

Prior period items are income or expenses which arise in the current period as a result of errors or omissions in the preparation of the financial
¹¹ statements of one or more prior periods

Extraordinary items are income or expenses that anse from events or transactions that are dearly distinct from the ordinary activities of tne
^G enterprise snd. therefore, are not expected to recur frequently or regularly.

24 Government Grant

Government grants are recognised whore there is reasonable assurance that the grant will be received and all attached conditions will be complied
with. When the grant relates to an expenso item, it is recognised as income on asystamatic basis over the periods that tho related costs, for which it
is intended to compensate, are expensed When the grant relates to an asset, the government grant related to assets is presented by deducting
the grant in arriving at the carrying amount of the asset.

During the year, grant of INR 7 50 cr. Is recognised In the profit and loss and grant of INR 4.5 cr. which pertains to previous years is recognised as
exceptional item in the profit and loss account under ''Uttar Pradesh Investment and Employment Promotion Policy 2017*. This recognition has
been made as tne condition associated with the grant have been ouly complied with and it is highly likely that the grant will be received from the
government

(a) There is no discrepancies exceeding 10% or more In aggregate for each class of Inventory were notices on physical verification of Inventories
^& as compared to book records

(b) The Company has sanctioned working capital limit in excess of five crore rupees, in aggregate, from banks or financial Institutions on the basis
of security of current assets. The monthly returns or statements filed by the company with banks or financial Institutions were in agreement with the
books of accounts of the company and discrepancies are given as under.

In terms of our report attncned

for Mittal Gool & Associate# for _{and on} behalf of tho Board of Directors

Chartered Accountants Nikita Papers Limited

Firm Registration Number D17577N

CA. Snndeep Kunw Goel Ash ok Kumar Bonsai Ayu^ansal

h- M Managing Director Whore Time Director

Membership No. 059212 Din: 00321238 Din: 00774900

Place. Shamil Sh^JfGupta At&IAerorv/

Data: 15.08 2024 Qpmpliane Officer

PAN:BTAPG6450Q PAltf-AOGPA037OR