Notes to Accounts of Raama Paper Mills Ltd.

Mar 31, 2025

2.11 Provisions and contingencies
Provisions:

Provisions are recognised when there is a present obligation as a result of a past event and it is probable that an outflow of
resources embodying economic benefits will be required to settle the obligation and there is a reliable estimate of the amount
of the obligation. Provisions are determined by discounting the expected future cash flows at a pre-tax rate that reflects current
market assessment of the time value of money and the risks specific to the liability.

Contingent Liabilities:

Contingent liabilities are disclosed when there is a possible obligation arising from past events, the existence of which will be
confirmed only by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of
the Company or a present obligation that arises from past events where it is either not probable that an outflow of resources
will be required to settle or a reliable estimate of the amount cannot be made.

2.12 Financial instruments

Financial assets and financial liabilities are initially measured at fair value. Transaction costs that are directly attributable to
the acquisition or issue of financial instruments (other than financial assets and financial liabilities at fair value through profit
or loss) are added to or deducted from the fair value of the financial assets or financial liabilities, as appropriate, on initial
recognition. Transaction costs directly attributable to the acquisition of financial assets or financial liabilities at fair value
through profit or loss are recognised immediately in profit or loss. Subsequently, financial instruments are measured according
to the category in which they are classified.

All recognised financial assets are subsequently measured in their entirety at either amortised cost or fair value, depending on
the classification of the financial assets.

Classification of financial assets

Classification of financial assets depends on the nature and purpose of the financial assets and is determined at the time of
initial recognition. The Company classifies its financial assets in the following measurement categories:

• those to be measured subsequently at fair value (either through other comprehensive income, or through profit or loss), and

• those measured at amortised cost

A financial asset that meets the following two conditions is measured at amortised cost unless the asset is designated at fair
value through profit or loss under the fair value option:

• The objective of the Company''s business model is to hold the financial asset to collect the contractual cash flows.

• Cash flow characteristic test: the contractual term of the financial asset give rise on specified dates to cash flows that are
solely payments of principal and interest on the principal amount outstanding.

A financial asset that meets the following two conditions is measured at fair value through other comprehensive income unless
the asset is designated at fair value through profit or loss under the fair value option:

• Business model test: the financial asset is held within a business model whose objective is achieved by both collecting cash
flows and selling financial assets.

• Cash flow characteristic test: the contractual term of the financial asset gives rise on specified dates to cash flows that are
solely payments of principal and interest on the principal amount outstanding.

All other financial assets are measured at fair value through profit or loss.

Financial assets carried at amortised cost

A financial asset is subsequently measured at amortised cost if it is held in order to collect contractual cash flows and the
contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and
interest on the principal amount outstanding.

Financial assets carried at fair value through othercomprehensive income (FVTOCI): The Company has
equity investments in certain entities which are not held for trading. The Company has elected the fair value through other
comprehensive income irrevocable option for all such investments. Dividend on these investments are recognised in profit or
loss.

Financial assets carried at fair value through profit or loss (FVTPL): Investment in equity instrument are classified at fair
value through profit or loss, unless the Company irrevocably elects on initial recognition to present subsequent changes in fair
value in other Comprehensive Income for investments in equity instruments which are not held for trading.

Financial assets that do not meet the amortised cost criteria or fair value through other comprehensive income criteria are
measured at fair value through profit or loss. A financial asset that meets the amortised cost criteria or fair value through other
comprehensive income criteria may be designated as at fair value through profit or loss upon initial recognition if such
designation eliminates or significantly reduces a measurement or recognition inconsistency that would arise from measuring
assets and liabilities or recognising the gains or losses on them on different bases.

Financial assets which are fair valued through profit or loss are measured at fair value at the end of each reporting period, with
any gains or losses arising on re-measurement recognised in profit or loss.

FINANCIAL LIABILITIES

Financial liabilities are classified at initial recognition as financial liabilities at fair value through profit or loss, loans and
borrowings, and payables, net of directly attributable transaction costs. The Company’s financial liabilities include loans and
borrowings including bank overdraft, security deposit received, trade payable, liabilities towards services and other payables.
All Financial Liabilities are recognised initially at fair value and transaction cost that is attributable to the acquisition of the
Financial Liabilities is also adjusted. Financial Liabilities are classified as amortised cost.

A Financial Liability is de-recognised when the obligation under the liability is discharged or cancelled or expired.
Consequently, write back of unsettled credit balances is done on the previous experience of the management and actual facts
of each case and recognised in Other Income. When an existing Financial Liability is replaced by another, from the same lender
on substantially different terms, or the terms of an existing liability are substantially modified, such as exchange or modification
is treated as the de-recognition of the original liability and the recognition of a new liability. The difference in the respective
carrying amounts is recognised in the Statement of Profit and Loss.

Offsetting of Financial Instruments

Financial Assets and Financial Liabilities are offset and the net amount is reported in the balance sheet if there is a currently
enforceable legal right to offset the recognised amounts and there is an intention to settle on a net basis, to realise the assets
and settle the liabilities simultaneously.

2.13 Trade receivables

Trade receivables are recognised initially at fair value and subsequently measured at amortised cost less provision for
impairment. The Company follows ‘Simplified Approach’ for recognition of impairment loss allowance on trade receivables.
The application of simplified recognises impairment loss allowance based on lifetime ECL at each reporting date, right from
its initial recognition.

2.14 Cash and cash equivalents

Cash and cash equivalents includes cash in hand, cheques and drafts in hand, balances with bank and deposits with an original
maturity of three months or less, which are subject to an insignificant risk of changes in value.

2.15 Impairment of financial assets

The Company recognizes loss allowances using the expected credit loss for the financial assets which are not measured at fair
value through profit or loss. Loss allowance for trade receivables with no significant financing component is measured at an
amount equal to lifetime expected credit loss.

2.16 Segment Reporting

Operating segments are reported in a manner consistent with the internal reporting provided to the Chief Operating Decision
Maker (CODM).

In accordance with Ind AS 108 - “Operating Segments”, the operating segments used to present segment information are
identified on the basis of internal reports used by the Company’s Management to allocate resources to the segments and assess
their performance. The Managing Director of the Company is the Company’s ‘Chief Operating Decision Maker’ or ‘CODM’

within the meaning of Ind AS 108. Based on CODM evaluation, the Company is engaged in the single primary business of
manufacturing and sale of ‘Coated Abrasives’

2.17 Earning Per Share

Basic earning per share is computed by dividing the net income by the weighted average number of shares outstanding during
the year. Diluted earning per share is computed using the weighted average number of shares and diluted potential shares,
except where the result would be anti-dilutive.

2.18 Dividends

Final dividends on shares are recorded on the date of approval by the shareholders of the Company.

2.19 Exceptional Items

Exceptional items are transactions which due to their size or incidence are separately disclosed to enable a full understanding
of the Company’s financial performance. Items which may be considered exceptional are significant restructuring charges and
significant disposal of fixed assets.

2.20 Recent Pronouncement

On March 31, 2023, MCA amended the Companies (Indian Accounting Standards) Rules, 2015 by issuing the Companies
(Indian Accounting Standards) Amendment Rules, 2023, applicable from April 1,2023, as below:

Ind AS 1-Presentation of Financial Statements-

The amendments require companies to disclose their material accounting policies rather than their significant accounting
policies. Accounting policy information, together with other information, is material when it can reasonably be expected to
influence decisions of primary users of general-purpose financial statements. The Company has evaluated the amendment and
the impact of the amendment is insignificant in the standalone financial statements.

Ind AS 8- Accounting Policies, Changes in Accounting Estimates and Errors-

This amendment has introduced a definition of ‘accounting estimates’ and included amendments to Ind AS 8 to help entities
distinguish changes in accounting policies from changes in accounting estimates. The definition of a change in accounting
estimates has been replaced with a definition of accounting estimates. Under the new definition, accounting estimates are
“monetary amounts in financial statements that are subject to measurement uncertainty”. Entities develop accounting estimates
if accounting policies require items in financial statements to be measured in a way that involves measurement uncertainty.
The Company does not expect this amendment to have any significant impact in its financial statements.

Ind AS 12- Income Taxes-

The amendments clarify how companies account for deferred tax on transactions such as leases and decommissioning
obligations. The amendments narrowed the scope of the recognition exemption in paragraphs 15 and 24 of Ind AS 12
(recognition exemption) so that it no longer applies to transactions that, on initial recognition, give rise to equal taxable and
deductible temporary differences. The Company has evaluated the amendment and there is no impact on its standalone financial
statement.

i. Capital reserve is Subscribed capital forfeited due to non- receipt of call money treated as Capital reserve.

ii. Securities Premium Reserve

Amount received in excess of face value of the equity & preference shares is recognized in Securities Premium.

iii. Retained Earning

Retained earnings are the profits of the company earned till date less any transfers to general reserve, dividends or any other
distributions to shareholder.

iv. Other Comprehensive income

Other components of Equity includes Other Comprehensive Income arising due to investments valued through Other
Comprehensive income.

v. Preference Shares

The 6% Non- Cumulative Convertible Preference Shares have :

-The right to receive a fixed preferential dividend at specified rate on the paid up capital.

-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, 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.

Terms of Redemption:- The company has preference shares having a par value of Rs. 100 per share. Resolution passed
by the shareholders of the company at their annual general meeting held on 08.09.2009 to convert the Preference Shares
into Equity Shares could not be given effect in absence of in-principle approval from Bombay Stock Exchange, which has
been kept in abeyance due to earlier listing issues yet to resolved in SEBI for conversion of equity share application money into
equity share capital.

The Companyhas failed to convert Preference Shares as per the approval of shareholders in the AGM held on 08.09.2009. After
elapse of 20 years of issue of Preference shares from the date of first allotment, the company is in process of making application
to relevent authority in terms of section 55(3) of the Companies Act, 2013. In view of Losses no prefrence dividend is declared
by the company.

The 14% cumulative redeemable preference shareholders have:-

The right to receive a fixed cumulative preferential dividend at specified rate on the paid up capital. In view of Losses no
prefrence dividend is declared by the company.

-The right to receive arrears of cumulative dividend, if any, whether earned or declared, at the 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, be paid off in priority to any payment of capital on equity shares. However, it shallnot
confer the right to any further participation in the profits or assets of the Company.

Terms of Redemption:- Preference Shares shall be redeemable at the option of the Board any time not later than five years
from the date of allotment and such redemption shall be in accordance to the provisions of the Companies Act 2013. The
redemption was due in the year 2019. However, due to inadequancy of profits in the Company, the Company has not been
able to redeem the preference shares till date. The Preferece Shareholder has filed case under section 138 of Negotiable
Instruments Act. The matter is pending before the court.

From banks:

* Term loan from a bank are repayable originally in monthly installments and secured by hypothecation of vehicles acquired out
of the loan.

Secured ICDs from lenders are carrying interest @ 12% p.a and are secured by way of Equitable Mortgage on Free Hold Land
of the Company and Hypothecation of Factory Building, Incl. Power Plant, Turbine and Boiler and Plant and Machinery,
Inventories and Book Debts.

The Managing Director has also executed Demand and Promissory Note of Rs. 1250 Lacs along with interested thereon in favour
of the Secured ICD Lenders.

For Related Party transactions, refer Note No. 33

Secured inter corporate deposits were due for repayments along with interest on 31/03/2024. Company has not been able to
make the repayment Refer Note No. 42 for Events after Balance Sheet date
Repayment terms and security disclosure for the outstanding borrowings :

From banks:

* Term loan from a bank are repayable originally in monthly installments and secured by hypothecation of vehicles acquired out
of the loan.

Secured ICDs from lenders are carrying interest @ 12% p.a and are secured by way of Equitable Mortgage on Free Hold Land of
the Company and Hypothecation of Factory Building, Incl. Power Plant, Turbine and Boiler and Plant and Machinery, Inventories
and Book Debts.

The Managing Director has also executed Demand and Promissory Note of Rs. 1250 Lacs along with interested thereon in favour
of the Secured ICD Lenders.

For Related Party transactions, refer Note No. 33

Secured inter corporate deposits were due for repayments along with interest on 31/03/2024. Company has not been able to
make the repayment Refer Note No. 42 for Events after Balance Sheet date

* Disclosure pursuant to section 22 of The Micro, Small and Medium Enterprise Development Act, 2006
(MSMED Act)

Parties covered under "The Micro, Small and Medium Enterprise Development Act, 2006" (MSMED Act,
2006) have been identified on the basis of confirmation received from respective parties. The disclosures
pursuant to the said MSMED Act are as follows:

Matters are subject to legal proceedings in the ordinary course of business. The legal proceedings,
when ultimately conluded will not, in the opinion of the management, have a material effect on the
results of the operations or financial position.

B. Commitments

a. Capital commitments: Estimated amount of contracts remaining to be executed on capital account and
not provided for (net of advances) amounts to Rs. 566.32 (March 31, 2024: Rs. 566.32).

b Guarantees

Guarantees: Rs. NIL (March 31, 2024: Rs. 300 Lakhs).

Note No. 30

Dislosure as required under IND AS 115 " Revenue from contract with Customers are given below:

A. Disaggregation of Revenue

Note No. 36

Disclosures under Ind AS 19 "Employee Benefits":

1. The existing provision for Gratuity Payable as at 31.03.24 as per books has been
reversed and new provision has been made for remaining employees on Accrual Basis.

• The staff who have resigned after initiation of CIRP has finally claimed their dues as at
ICD date i.e 07.06.24 and the same has been assessed and finalized by the IRP. The total
amount of claims of staff stood at Rs 206.05 Lakhs, out of which the Gratuity claim is Rs
107.24 Lakhs and rest is salary claim. So the staff who resigned pre CIRP or at CIRP
date claimed Rs 107.24 Lakhs as Gratuity.

• The Staff who were working after CIRP date to support the process of CIRP and
resigned after the task assigned to them, have resigned now, and claimed their Gratuity as
per list given below. Their claim stood at Rs 37.13 Lakhs. The list of staff and their
claim calculation is as under:

Fair Value hierarchy

Level 1 : Quoted prices in the active market. This level of hierarchy includes financial

| assets that are measured by reference to quoted prices in the active market.
Level 2: Valuation techniques with observable inputs. This level of hierarchy includes |

items measured using inputs other thanquoted prices included within Level 1
that are observable for such items, either directly or indirectly.

Level 3: Valuation techniques with unobservable inputs. This level of hierarchy includes

items measured using inputs that are not based on observable market data
(unobservable inputs). Fair value determined in whole or in part, using a
valuation model based on assumptions that are neither supported by prices
from observable current market transactions in the same instruments nor
based on available market data. The main item in this category are unquoted
equity instruments.

Financial risk management

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

- Credit risk ;

- Liquidity risk ; and

- Market risk - Interest rate

- Price risk - BSE / NSE Index

Risk management
framework

Financial risk management within the Company is governed by policies and guidelines approved by the senior
management and the Board of Directors. These policies and guidelines cover interest rate risk, credit risk and
liquidy risk. Company policies and guidelines also cover areas such as cash management, investment of
excess funds and the raising of short and long-term debt. Review of the financial risk is done regularly by the
senior management and the Board of Directors.

Note No 38

Financial instruments - Fair values and risk management - continued

(i) Credit risk

The maximum exposure to credit risks is represented by the total carrying amount of these financial
assets in the Balance Sheet:

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

Credit risk on cash and cash equivalents is limited as the Company if required generally invests in
deposits with scheduled banks.

The maximum exposure to the credit risk at the reporting date is primarily from trade receivables.
Maximum Trade receivables are unsecured and are derived from revenue earned from customers
primarily located in India. The Company manages its credit risk through continuous monitoring credit
worthiness of customers to which the Company grants credit terms in the normal course of business.

The Company establishes an allowance for impairment that represents its expected credit losses in
respect of trade receivable. The management uses a simplified approach (i.e. based on lifetime ECL)
for the purpose of impairment loss allowance. However the Company based upon historical
experience determines an impairment allowance for loss on receivables.

Note No 38

Financial instruments - Fair values and risk management - continued

(ii) Liquidity risk

Liquidity risk is the risk that the Company will encounter difficulty in meeting the obligations associated with its
financial liabilities that are settled by delivering cash or another financial asset. The Company''s approach to
managing liquidity is to ensure, as far as possible, that it will have sufficient liquidity to meet its liabilities when
they are fallen due, under both normal and stressed conditions, without incurring unacceptable losses or risking
damage to the Company''s reputation.

The Company''s liquidity management process as monitored by management, includes day to day funding,
managed by monitoring cash flows to ensure that requirements is met.

I. Financing
arrangements

The company had access to the following undrawn borrowing facilities at the end of the reporting period:

Note No 38

Financial instruments - Fair values and risk management - continued

(iii) Market risk

Market risk is the risk that the future cash flows of a financial instrument will fluctuate because of changes
in market prices. Market risk comprises two types of risk: currency risk and interest rate risk. The objective
of market risk management is to manage and control market risk exposures within acceptable
parameters, while optimising the return.

The Company''s operations are mainly in India and therefore rupee denominated, except
import of some raw materials and stores.

Currency risk

Currency risk is the risk that the future cash flows of a financial instrument will fluctuate because of changes
in foreign exchange rates.

The Company did not have any exposure to currency risk, as expressed in Indian Rupees, as at March 31,
2025and March 31, 2024.

Note No 38

Financial instruments - Fair values and risk management -
continued

(iii) Market risk

Interest rate risk

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

Exposure to interest rate risk

The Company''s interest rate risk arises majorly from the borrowings from banks carrying floating rate of
interest. The exposure of the Company''s borrowing to interest rate changes as reported to the management
at the end of the reporting period are as follows:

Note No 39

Capital management

For the purpose of the Company’s capital management, capital includes issued equity share capital and all other equity
reserves attributable to the equity holders of the company. The primary objective of the management of the Company’s
capital structure is to maintain an efficient mix of debt and equity in order to achieve a low cost of capital, while taking
into account the desirability of retaining financial flexibility to pursue business opportunities and adequate access to
liquidity to mitigate the effect of unforeseen events on cash flows.

The Company manages its capital structure and makes adjustments to it in light of changes in economic conditions. To
maintain or adjust the capital structure, the Company may return capital to shareholders, raise new debt or issue new shares.

The Company monitors capital on the basis of the debt to capital ratio, which is calculated as interest-bearing debts divided
by total capital (equity attributable to owners of the company plus interest-bearing debts).

DIVIDENDS

The Board of Directors of the Company have not recommended any dividend for the financial year 2024¬
2025 (Previous year : Nil)

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

Note No 41 : Additional regulatory information required by Schedule III for FY 2024-25& 2023-24

(i) Details of Benami Property held :

No proceedings have been initiated on or are pending against the company for holding benami property under
the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and Rules made thereunder.

(ii) Wilful Defaulter

The Company has not been declared Willful defaulter by any bank or financial institution or government or
any government authority

(iii) Compliance with number of layers of companies

The company has complied with the number of layers prescribed under the Companies Act, 2013.

(iv) Compliance with approved scheme(s) of arrangements

The company has not entered into any scheme of arrangement which has an accounting impact on current or
previous financial year.

(v) Utilization of borrowed funds

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

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

b. provide any guarantee, security or the like to or on behalf of the ultimate beneficiaries

B. 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: a. directly or indirectly lend or invest in other persons
or entities identified in any manner whatsoever by

or on behalf of the Funding Party (Ultimate Beneficiaries) or b. provide any guarantee, security or the like on
behalf of the ultimate beneficiaries

(vi) Undisclosed income

There is no income surrendered or disclosed as income during the current or previous year in the tax assessments
under the Income Tax Act, 1961, that has not been recorded in the books of account.

(vii) Details of Crypto currency or Virtual currency

The company has not traded or invested in crypto currency or virtual currency during the current or previous
year.

(viii) Valuation of PP&E, intangible asset and investment property

The company has not revalued its property, plant and equipment (including right-of-use assets) or intangible
assets or both during the current or previous year.

(ix) Registration of charges or satisfaction with Registrar of Companies:

There are no charges or satisfaction which are yet to be registered with the Registrar of Companies beyond
the statutory period.

(x) Utilization of borrowings availed from banks and financial institutions:

No borrowings were availed during the year by the company from banks and financial institutions.

(xi) Relationship with Struck off companies

There are no transactions with companies struck off under section 248 of the Companies Act, 2013 or Section
560 of the Companies Act, 1956. There are no outstanding balances in respect of any such companies as at
March 31, 2024 or March 31, 2023.

Note No 42

Material Event After the Date of Balance Sheet

Two Secured Creditors who have given Secured Inter Corporate Deposits to the Company have filed petition
before National Company Law Tribunal (NCLT), Allahabad Bench under Section 7 of The Insolvency and
Bankruptcy Code, 2016 to initiate Corporate Insolvency Resolution Process, appointment of Insolvency
Resolution Professional and declare a moratorium in respect of all actions set forth in Section 14 of the
Insolvency and Bankruptcy Code, 2016. NCLT vide order dated 07th June, 2024 has appointed the Insolvency
Resolution Professional (IRP). The Board of Directors of the Company has been suspended on appointment
of IRP.

Note No 43

Material Uncertainty Related To Going Concern

As on 31st March, 2025, the company has accumulated losses of Rs. 6,634.76 lakhs and incurred Net Loss
of Rs. 1644.36 lakhs during the year ended 31st March ,2025, and as of that date the company''s current
liabilities exceeded its Total assets by Rs. 2905.64 lakhs. The company has negative net worth of Rs.
4500.98 lakhs as on 31st March,2025. This indicates that a material uncertainly exists that may cast
significant doubt on the company''s ability to continue as a Going Concern. NCLT vide order dated 07th
June, 2024 has appointed the Insolvency Resolution Professional (IRP). IRP has invited Expression of
Interest for resolution plan for the company & company''s ability to operate as Going Concern depends
upon the resolution plans which have been invited. Accordingly, the Financial Results has been prepared
on Going Concern Basis.

Note No 44

In view of Losses, No preference dividend is declared by the company. The Company has failed to convert
6% Preference Shares of Rs. 500 Lakhs as per the approval of shareholders in the AGM held on
08.09.2009. Durring the nine months ended 31.12.2024, the Redeemable 14% non-Cumulative
nonconvertible Preference Shares of Rs 100 Each fully Paid up amounting to Rs.500.00 Lakhs have been
re classified as other financial liabilities from other equity in view of claim made by the prefrence
shareholder.

Note No 45

The Company is engaged in the single primary business of "Manufacturing of Paper and Paper related
products", and has only one reportable segment in accordance with Ind AS 108 - Operating Segments.

Note No 46

The company has not provided interest of Rs. 444.81 Lakhs from 08/06/2024 to 31/03/2025 payable on
2 secured Inter Corporate Deposit. Company has provided interest on these deposits till date of
appointment of IRP i.e. 7th, June, 2024. Had the company provided this interest the Loss for the Year
would have increased by Rs.444.81 Lakhs and accumulated losses would have increased by Rs. 444.81
Lakhs.

Note No 47

No Physival Verification of Property, Plant & Equipment has been carried out during the
year.

48.1) The company has not bifurcated its trade payables into categories such as those due to Micro, Small
and Medium Enterprises (MSMEs) and others. This is a non-compliance with the disclosure requirements
mandated under Section 22 of the Micro, Small and Medium Enterprises Development (MSMED) Act,

2006 read with Schedule III of the Companies Act, 2013. The company is required to identify and disclose
separately the amounts payable to MSMEs to ensure transparency and statutory compliance.

Due to this non bifurcation compant is unable to compute whether any interest was to be provided on
overdue as per the MSME Act.

48.2) The company has not complied with the requirement to file MSME-1, the half-yearly return
mandated under Section 405 of the Companies Act, 2013, as per the Ministry''s Order dated 22 January
2019. This form, now further clarified and expanded under the MCA''s updated portal (V3), must be filed
by companies that engage suppliers registered as Micro or Small Enterprises and delay payments
beyond 45 days. The failure to submit MSME-1 for the financial year 2024-25 constitutes a
non-compliance under the Companies Act and associated notifications

48.3) the Company has used accounting software for maintaining its books of account for the financial
year ended 31st March, 2025 which did not have audit trail feature from 01st April''2024 to 31st
January 2025. With effect from 01thFeburary ''2025 accounting software has a feature of recording
audit trail (edit log) facility and the same has operated throughout the period from 01-02-2025 to 31¬
03-2025 for all relevant transactions recorded in the software.

Note No 49

Previous year figures have been regrouped/rearranged wherever, considered necessary.

As per our Report on even date FOR RAAMA PAPER MILLS LIMITED

For Jagdish Chand & Co
Chartered Accountants

Firm Regn. No. 000129N Sandeep Kumar Aggarwal

IBBI/IPA-001 /IP-P01135/2018-2019/11828

Resolution Professional

In the Matter of M/S Raama Paper Mills Limited

CA Abhinav Anand
(Partner)

Membership No. 529197

Place: New Delhi Nirdesh Aggarwal Himanshu Duggal

Date: 06/09/2025 CFO Company Secretary

UDIN: 25529197BMLDGQ3490_PAN: AHDPA8176F_M.No A31026_

---

Mar 31, 2024

2.11 Provisions and contingencies
Provisions:

Provisions are recognised when there is a present obligation as a result of a past event and it is probable that an outflow of
resources embodying economic benefits will be required to settle the obligation and there is a reliable estimate of the amount
of the obligation. Provisions are determined by discounting the expected future cash flows at a pre-tax rate that reflects current
market assessment of the time value of money and the risks specific to the liability.

Contingent Liabilities:

Contingent liabilities are disclosed when there is a possible obligation arising from past events, the existence of which will be
confirmed only by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of
the Company or a present obligation that arises from past events where it is either not probable that an outflow of resources
will be required to settle or a reliable estimate of the amount cannot be made.

2.12 Financial instruments

Financial assets and financial liabilities are initially measured at fair value. Transaction costs that are directly attributable to
the acquisition or issue of financial instruments (other than financial assets and financial liabilities at fair value through profit
or loss) are added to or deducted from the fair value of the financial assets or financial liabilities, as appropriate, on initial
recognition. Transaction costs directly attributable to the acquisition of financial assets or financial liabilities at fair value
through profit or loss are recognised immediately in profit or loss. Subsequently, financial instruments are measured according
to the category in which they are classified.

All recognised financial assets are subsequently measured in their entirety at either amortised cost or fair value, depending on
the classification of the financial assets.

Classification of financial assets

Classification of financial assets depends on the nature and purpose of the financial assets and is determined at the time of
initial recognition.The Company classifies its financial assets in the following measurement categories:

• those to be measured subsequently at fair value (either through other comprehensive income, or through profit or loss), and

• those measured at amortised cost

A financial asset that meets the following two conditions is measured at amortised cost unless the asset is designated at fair
value through profit or loss under the fair value option:

• The objective of the Company''s business model is to hold the financial asset to collect the contractual cash flows.

• Cash flow characteristic test : the contractual term of the financial asset give rise on specified dates to cash flows that are
solely payments of principal and interest on the principal amount outstanding.

A financial asset that meets the following two conditions is measured at fair value through other comprehensive income unless
the asset is designated at fair value through profit or loss under the fair value option:

• Business model test : the financial asset is held within a business model whose objective is achieved by both collecting cash
flows and selling financial assets.

• Cash flow characteristic test : the contractual term of the financial asset gives rise on specified dates to cash flows that are
solely payments of principal and interest on the principal amount outstanding.

All other financial assets are measured at fair value through profit or loss.

Financial assets carried at amortised cost

A financial asset is subsequently measured at amortised cost if it is held in order to collect contractual cash flows and the
contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and
interest on the principal amount outstanding.

Financial assets carried at fair value through other comprehensive income (FVTOCI): The Company
has equity investments in certain entities which are not held for trading. The Company has elected the fair value through other
comprehensive income irrevocable option for all such investments. Dividend on these investments are recognised in profit or
loss.

Financial assets carried at fair value through profit or loss (FVTPL): Investment in equity instrument are classified at fair
value through profit or loss, unless the Company irrevocably elects on initial recognition to present subsequent changes in fair
value in other Comprehensive Income for investments in equity instruments which are not held for trading.

Financial assets that do not meet the amortised cost criteria or fair value through other comprehensive income criteria are
measured at fair value through profit or loss. A financial asset that meets the amortised cost criteria or fair value through other
comprehensive income criteria may be designated as at fair value through profit or loss upon initial recognition if such
designation eliminates or significantly reduces a measurement or recognition inconsistency that would arise from measuring
assets and liabilities or recognising the gains or losses on them on different bases.

Financial assets which are fair valued through profit or loss are measured at fair value at the end of each reporting period, with
any gains or losses arising on re-measurement recognised in profit or loss.

FINANCIAL LIABILITIES

Financial liabilities are classified at initial recognition as financial liabilities at fair value through profit or loss, loans and
borrowings, and payables, net of directly attributable transaction costs. The Company’s financial liabilities include loans and
borrowings including bank overdraft, security deposit received, trade payable, liabilities towards services and other payables.
All Financial Liabilities are recognised initially at fair value and transaction cost that is attributable to the acquisition of the
Financial Liabilities is also adjusted. Financial Liabilities are classified as amortised cost.

A Financial Liability is de-recognised when the obligation under the liability is discharged or cancelled or expired.
Consequently write back of unsettled credit balances is done on the previous experience of the management and actual facts of
each case and recognised in Other Income. When an existing Financial Liability is replaced by another, from the same lender
on substantially different terms, or the terms of an existing liability are substantially modified, such as exchange or modification
is treated as the de-recognition of the original liability and the recognition of a new liability. The difference in the respective
carrying amounts is recognised in the Statement of Profit and Loss.

Offsetting of Financial Instruments

Financial Assets and Financial Liabilities are offset and the net amount is reported in the balance sheet if there is a currently
enforceable legal right to offset the recognised amounts and there is an intention to settle on a net basis, to realise the assets
and settle the liabilities simultaneously.

2.13 Trade receivables

Trade receivables are recognised initially at fair value and subsequently measured at amortised cost less provision for
impairment. The Company follows ‘Simplified Approach’ for recognition of impairment loss allowance on trade receivables.
The application of simplified recognises impairment loss allowance based on lifetime ECL at each reporting date, right from
its initial recognition.

2.14 Cash and cash equivalents

Cash and cash equivalents includes cash in hand, cheques and drafts in hand, balances with bank and deposits with an original
maturity of three months or less, which are subject to an insignificant risk of changes in value.

2.15 Impairment of financial assets

The Company recognizes loss allowances using the expected credit loss for the financial assets which are not measured at
fairvalue through profit or loss. Loss allowance for trade receivables with no significant financing component is measured at
an amount equal to lifetime expected credit loss.

2.16 Segment Reporting

Operating segments are reported in a manner consistent with the internal reporting provided to the Chief Operating Decision
Maker (CODM).

In accordance with Ind AS 108 - Operating Segments , the operating segments used to present segment information are
identified on the basis of internal reports used by the Company’s Management to allocate resources to the segments and assess
their performance. The Managing Director of the Company is the Company’s ‘Chief Operating Decision Maker’ or ‘CODM’
within the meaning of Ind AS 108. Based on CODM evaluation, the Company is engaged in the single primary business of
manufacturing and sale of ‘Coated Abrasives’.

2.17 Earning Per Share

Basic earning per share is computed by dividing the net income by the weighted average number of shares outstanding during
the year. Diluted earning per share is computed using the weighted average number of shares and diluted potential shares,
except where the result would be anti-dilutive.

2.18 Exceptional Items

Exceptional items are transactions which due to their size or incidence are separately disclosed to enable a full understanding
of the Company’s financial performance. Items which may be considered exceptional are significant restructuring charges and
significant disposal of fixed assets.

i. Capital reserve is Subscribed capital forfeited due to non- receipt of call money treated as Capital reserve.

ii. Securities Premium Reserve

Amount received in excess of face value of the equity & preference shares is recognized in Securities
Premium.

iii. Retained Earning

Retained earnings are the profits of the company earned till date less any transfers to general reserve,
dividends or any other distributions to shareholder.

iv. Other Comprehensive income

Other components of Equity includes Other Comprehensive Income arising due to investments valued
through Other Comprehensive income.

v. Preference Shares

The 6% Non- Cumulative Convertible Preference Shares have :

-The right to receive a fixed preferential dividend at specified rate on the paid up capital.

-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, 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.

Terms of Redemption:- The company has preference shares having a par value of Rs. 100 per share.
Resolution passed

by the shareholders of the company at their annual general meeting held on 08.09.2009 to convert the
Preference Shares

into Equity Shares could not be given effect in absence of in-principle approval from Bombay Stock
Exchange, which has

been kept in abeyance due to earlier listing issues yet to resolved in SEBI for conversion of equity share

application money

into equity share capital.

The Companyhas failed to convert Preference Shares as per the approval of shareholders in the AGM held on
08.09.2009. After elapse of 20 years of issue of Preference shares from the date of first allotment, the
company is in process of making application to relevent authority in terms of section 55(3) of the Companies
Act, 2013. In view of Losses no prefrence dividend is declared by the company.

The 14% cumulative redeemable preference shareholders have:-

The right to receive a fixed cumulative preferential dividend at specified rate on the paid up capital. In view
of Losses no prefrence dividend is declared by the company.

-The right to receive arrears of cumulative dividend, if any, whether earned or declared, at the 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, 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.

Terms of Redemption:- Preference Shares shall be redeemable at the option of the Board any time not later
than five years from the date of allotment and such redemption shall be in accordance to the provisions of
the Companies Act 2013. The redemption was due in the year 2019. However, due to inadequancy of profits
in the Company, the Company has not been able to redeem the preference shares till date. The Preferece
Shareholder has filed case under section 138 of Negotiable Instruments Act. The matter is pending before
the court.

From banks:

* Term loan from a bank are repayable originally in monthly installments and secured by hypothecation
of vehicles acquired out of the loan.

Secured ICDs from lenders are carrying interest @ 12% p.a and are secured by way of Equitable
Mortgage on Free Hold Land of the Company and Hypothecation of Factory Building, Incl. Power
Plant, Turbine and Boiler and Plant and Machinery, Inventories and Book Debts.

The Managing Director has also executed Demand and Promissory Note of Rs. 1250 Lacs along with
interested thereon in favour of the Secured ICD Lenders.

For Related Party transactions, refer Note No. 33

Secured inter corporate deposits were due for repayments along with interest on 31/03/2024.
Company has not been able to make the repayment Refer Note No. 42 for Events after Balance Sheet
date

Matters are subject to legal proceedings in the ordinary course of business. The legal proceedings,
when ultimately conluded will not, in the opinion of the management, have a material effect on the
results of the operations or financial position.

B. Commitments

a. Capital commitments: Estimated amount of contracts remaining to be executed on capital account and
not provided for (net of advances) amounts to Rs. 566.32 (March 31, 2023: Rs. NIL).

b Guarantees

Guarantees: Rs. 300 Lakh (March 31, 2023: Rs. 300 Lakhs).

Note No. 30

Dislosure as required under IND AS 115 " Revenue from contract with Customers are given below:

A. Disaggregation of Revenue

Since the company operates in single segment of Paper & Paper Products all reported revenue is for that
segment only.

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

- Credit risk ;

- Liquidity risk ; and

- Market risk - Interest rate

- Price risk - BSE / NSE Index

Risk management
framework

Financial risk management within the Company is governed by policies and guidelines approved by the senior
management and the Board of Directors. These policies and guidelines cover interest rate risk, credit risk and
liquidy risk. Company policies and guidelines also cover areas such as cash management, investment of
excess funds and the raising of short and long-term debt. Review of the financial risk is done regularly by the
senior management and the Board of Directors.

The maximum exposure to the credit risk at the reporting date is primarily from trade receivables.
Maximum Trade receivables are unsecured and are derived from revenue earned from customers
primarily located in India. The Company manages its credit risk through continuous monitoring
credit worthiness of customers to which the Company grants credit terms in the normal course of
business.

The Company establishes an allowance for impairment that represents its expected credit losses in
respect of trade receivable. The management uses a simplified approach (i.e. based on lifetime ECL)
for the purpose of impairment loss allowance. However the Company based upon historical
experience determines an impairment allowance for loss on receivables.

(iii) Market risk

Market risk is the risk that the future cash flows of a financial instrument will fluctuate
because of changes in market prices. Market risk comprises two types of risk: currency risk
and interest rate risk. The objective of market risk management is to manage and control
market risk exposures within acceptable parameters, while optimising the return.

The Company''s operations are mainly in India and therefore rupee denominated, except
import of some raw materials and stores.

Currency risk

Currency risk is the risk that the future cash flows of a financial instrument will fluctuate
because of changes in foreign exchange rates.

Exposure to currency risk

The Company did not have any exposure to currency risk, as expressed in Indian Rupees, as
at March 31, 2024 and March 31, 2023.

Note No 38

Financial instruments - Fair values and risk management -
continued

(iii) Market risk

Interest rate risk

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

Exposure to interest rate risk

The Company''s interest rate risk arises majorly from the borrowings from banks carrying floating rate of
interest. The exposure of the Company''s borrowing to interest rate changes as reported to the
management at the end of the reporting period are as follows:

(iv) Price Risk -
Senstivity

The company doesnot have any investment hence price risk senstivity is not applicable.

Note No 39

Capital management

For the purpose of the Company’s capital management, capital includes issued equity share capital and all other equity
reserves attributable to the equity holders of the company. The primary objective of the management of the Company’s
capital structure is to maintain an efficient mix of debt and equity in order to achieve a low cost of capital, while taking
into account the desirability of retaining financial flexibility to pursue business opportunities and adequate access to
liquidity to mitigate the effect of unforeseen events on cash flows.

The Company manages its capital structure and makes adjustments to it in light of changes in economic conditions. To
maintain or adjust the capital structure, the Company may return capital to shareholders, raise new debt or issue new
shares.

The Company monitors capital on the basis of the debt to capital ratio, which is calculated as interest-bearing debts
divided by total capital (equity attributable to owners of the company plus interest-bearing debts).

DIVIDENDS

The Board of Directors of the Company have not recommended any dividend for the financial year 2023¬
2024 (Previous year : Nil)

Note No 40

The Code on Social Security, 2020 (‘Code’) relating to employee benefits during employment and
postemployment benefits received Presidential assent in September 2020. The Code has been published
in the Gazette of India. However, the date on which the Code will come into effect has not been notified.

The Company will assess the impact of the Code when it comes into effect and will record any related
impact in the period the Code becomes effective.

Note No 41 : Additional regulatory information required by Schedule III for FY 2023-24 & 2022-23

(i) Details of Benami Property held :

No proceedings have been initiated on or are pending against the company for holding benami property under
the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and Rules made thereunder.

(ii) Wilful Defaulter

The Company has not been declared Willful defaulter by any bank or financial institution or government or
any government authority

(iii) Compliance with number of layers of companies

The company has complied with the number of layers prescribed under the Companies Act, 2013.

(iv) Compliance with approved scheme(s) of arrangements

The company has not entered into any scheme of arrangement which has an accounting impact on current or
previous financial year.

(v) Utilization of borrowed funds

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

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

b. provide any guarantee, security or the like to or on behalf of the ultimate beneficiaries

B. 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: a. directly or indirectly lend or invest in other
persons or entities identified in any manner whatsoever by

or on behalf of the Funding Party (Ultimate Beneficiaries) or b. provide any guarantee, security or the like on
behalf of the ultimate beneficiaries

(vi) Undisclosed income

There is no income surrendered or disclosed as income during the current or previous year in the tax
assessments under the Income Tax Act, 1961, that has not been recorded in the books of account.

(vii) Details of Crypto currency or Virtual currency

The company has not traded or invested in crypto currency or virtual currency during the
current or previous year.

(viii) Valuation of PP&E, intangible asset and investment property

The company has not revalued its property, plant and equipment (including right-of-use assets) or intangible
assets or both during the current or previous year.

(ix) Registration of charges or satisfaction with Registrar of Companies:

There are no charges or satisfaction which are yet to be registered with the Registrar of Companies beyond
the statutory period.

(x) Utilization of borrowings availed from banks and financial institutions:

No borrowings were availed during the year by the company from banks and financial institutions.

(xi) Relationship with Struck off companies

There are no transactions with companies struck off under section 248 of the Companies Act, 2013 or Section
560 of the Companies Act, 1956. There are no outstanding balances in respect of any such companies as at
March 31, 2024 or March 31, 2023.

Note 41.1

Due to technical reasons accounting software for maintaining company''s books of account for the
financial year ended 31st March, 2024 did not have audit trail feature from 01st April''2023 to
07th August 2023. With effect from 08th August'' 2023 accounting software has a feature of
recording audit trail (edit log) facility and the same has operated throughout the period from 08¬
08-2023 to 31-03-2024 for all relevant transactions recorded in the software.

Note No 42

Material Event After the Date of Balance Sheet

Two Secured Creditors who have given Secured Inter Corporate Deposits to the Company have
filed petition before National Company Law Tribunal (NCLT), Allahabad Bench under Section 7
of The Insolvency and Bankruptcy Code, 2016 to initiate Corporate Insolvency Resolution
Process, appointment of Insolvency Resolution Professional and declare a moratorium in
respect of all actions set forth in Section 14 of the Insolvency and Bankruptcy Code, 2016. NCLT
has issued Notice to the Company seeking response. The matter is pending before NCLT.

Note No 43

Material Uncertainty Related To Going Concern

As on 31st March, 2024, the company has accumulated losses of ^ 3,823.10 lakhs and incurred
Net Loss of ^ 1,948.32 lakhs year ended 31st March, 2024, and as of that date the company''s
Current Liabilities exceeded its Current Assets by ^ 6,443.79 lakhs. The company has negative net
worth of ^. 1,856.63 lakhs as on 31st March, 2024. This indicates that a material uncertainly exists
that may cast significant doubt on the company''s ability to continue as a Going Concern. The
management of the Company is taking steps to make company profitable and is also evalutating
methods to induct capital in the Company. Accordingly the Financial Results has been prepared on
Going Concern Basis.

Note No 44

Previous year figures have been regrouped/rearranged wherever, consi dered necessary.

As per our Report on even date

As per our Report on even date

For Jagdish Chand & Co For and on behalf of Board of Directors of

Chartered Accountants M/s Raama Paper Mills Limited

Firm Regn. No. 000129N

Pramod Agarwal Vandani Vohra

Managing Director Director

DIN: 00038838 DIN: 07848621

CA Abhinav Anand
(Partner)

Membership No. 529197

Place: Bijnor (UP) Himanshu Duggal Nirdesh Agarwal

Date: June, 04, 2024 Company Secretary CFO

UDIN: 24528197BKQFRK5157 PAN: ACDPH6376H PAN: AHDPA8176F

---

Mar 31, 2015

1 Since the Company operates in a single segment i.e. "Paper & Paper Board" Accounting Standard (AS)- 17 – "Segment Reporting" issued by the Institute of Chartered Accountants of India is not applicable.

2 Balance of Trade payable, Trade Receivables and Advances as at 31st March, 2015 are subject to confirmation.

3 In the opinion of the Board of Directors, Current Assets, Loans and Advances have valued on realisation in the ordinary course of business at least equal to the amount at which they have been stated in the Balance Sheet as at 31.03.2015.

4 The bifurcation of the total outstanding dues of small scale industrial undertaking and other than small scale Industrial undertakings as well as the named Small Scale Industrial, Undertaking to whom the Company Owes a sum of exceeding Rs. 100,000.00 and which is outstanding for more than 30 days are not Disclosed In the balance sheet as suppliers have not indicated their status on their documents/ papers, whether they Small Scale Undertakings or not. Hence it is not possible for the Company to disclose the said information in respect of trade creditors. 38 Previous year figures have been re arranged, regrouped, wherever necessary. The accompanying notes form an integral part of the Financial Statements.

---

Mar 31, 2014

1 Contingent Liabilities and Commitments (to the extent not provided for)

Contingent Liabilities

Guarantees 45,000,000 8,200,000

Sales Tax 3,411,083 3,411,083

Customs, Excise and Service Tax 1,683,603 1,683,603

2 Since the Company operates in a single segment i.e. "Paper & Paper Board" Accounting Standard (AS)- 17 - "Segment Reporting" issued by the Institute of Chartered Accountants of India is not applicable.

3 Balance of Trade payable, Trade Receivables and Advances as at 31st March, 2014 are subject to confirmation.

4 In the opinion of the Board of Directors, Current Assets, Loans and Advances have valued on realisation in the ordinary course of business at least equal to the amount at which they have been stated in the Balance Sheet as at 31.03.2014.

5 The bifurcation of the total outstanding dues of small scale industrial undertaking and other than small scale Industrial undertakings as well as the named Small Scale Industrial, Undertaking to whom the Company Owes a sum of exceeding Rs. 100,000.00 and which is outstanding for more than 30 days are not In the balance sheet as suppliers have not indicated their status on their documents/ papers, whether they Small Scale Undertakings or not. Hence it is not possible for the Company to disclose the said information in respect of trade creditors.

6 Trade Receivables has been shown after deducting the amount of advance from customers.

7 The ''Fixed assets register'' is under preparation, Hence the Book records and physical verification of Fixed Assets could not be reconciled. Steps are being taken to complete it at the earliest.

8 Keeping in view of the provisions of Section115jb of Income Tax Act, 1961, Provision for Income Tax (MAT) has been made.

9 Previous year figures have been re arranged, regrouped, wherever necessary.

The accompanying notes form an integral part of the Financial Statements.

---

Mar 31, 2013

1 Contingent Liabilities and Commitments (to the extent not provided for)

Contingent Liabilities As at 31.03.2013 As at 31.03.2012

Guarantees 8,200,000 8,000,000

Sales Tax 3,411,083 1,363,924

Customs, Excise and Service Tax 1,683,603 1,683,603

2 Related Party Disclosures:-

a) Key Management Personnel 1.Shri Pramod Agarwal 2.Shri Arun Goel

Companies Controlled by Directors/Relatives

Ram Fin Fortunes Private Limited

b) Related Party Transactions

3 Since the Company operates in a single segment i.e. "Paper & Paper Board" Accounting Standard (AS)- 17 – "Segment Reporting" issued by the Institute of Chartered Accountants of India is not applicable.

4 Balance of Sundry Debtors, Creditors and advances as at 31.03.2012 are subject to confi rmation.

5 In the opinion of the Board of Directors, Current Assets, Loans and Advances have valued on relisation in the ordinary course of business at least equal to the amount at which they have been stated in the Balance Sheet as at 31.03.2013.

6 The bifurcation of the total outstanding dues of small scale industrial undertaking and other than small scale Industrial undertakings as well as the named Small Scale Industrial, Undertaking to whom the Company Owes a sum of exceeding Rs. 100,000.00 and which is outstanding for more than 30 days are not In the balance sheet as suppliers have not indicated their status on their documents/ papers, whether they Small Scale Undertakings or not. Hence it is not possible for the Company to disclose the said information in respect of trade creditors.

7 Sundry Debtors has been shown after deducting the amount of advance from customers.

8 The ''Fixed assets register'' is under preparation, Hence the Book records and physical verifi cation of Fixed Assets could not be reconciled. Steps are being taken to complete it at the earliest.

9 Previous year fi gures have been re arranged, regrouped, wherever necessary.

The accompanying notes form an integral part of the Financial Statements.

---

Mar 31, 2012

(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, at the 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, 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.

Terms of Redemption:-The company has preference shares having a par value of Rs. 100 per share. Resolution passed by the shareholders of the company at their annual general meeting held on 08.09.2009 to convert the Preference Shares into Equity Shares could not be given effect in absence of in-principle approval from Bombay Stock Exchange, which has been kept in abeyance due to earlier listing issues yet to be resolved in SEBI for conversion of equity share application money into equity share capital.

(1) Term loan from Bank of Baroda is secured against hypothecation of Plant & Machinery, Land & Building (both present & future) of the Company and extension of hypothecation over stock & book debts of the company and also personal guarantee of Directors/Promoters of the Company.

From Bank of Baroda (for term loan of Rs. 3236 Lacs)

At the rate of 12.00% (Previous year 13.25% p.a.). Repayble in 27 quarterly installment of Rs. 115.57 lacs each and last installment of Rs. 115.61 lacs starting from 01.04.2013.

From Bank of Baroda (for FITLI of Rs. 471 Lacs)

At the rate of 11.50%. Repayble in 27 quarterly installment of Rs. 16.82 lacs each and last installment of Rs. 16.86 lacs starting from 01.04.2013.

From Bank of Baroda (for FITL II of Rs. 388 Lacs)

At the rate of 11.50%. Repayble in 27 quarterly installment of Rs. 13.86 lacs each and last installment of Rs. 13.78 lacs starting from 01.04.2013.

From Bank of Baroda (for WCTL of Rs. 1286 Lacs)

At the rate of 12.00%. Repayble in 27 quarterly installment of Rs. 45.93 lacs each and last installment of Rs. 45.89 lacs starting from 01.04.2013.

(2) Vehicles liabilities are secured by hypothecation of respective Vehicles and guaranteed by Directors of the Company. From ICICI Bank Ltd. (for term loan of Rs 18 Lacs)

At the rate of 12%. Repayble in 36 monthly installment (with interest) of Rs. 59778/-each, starting from 15.06.2011.

From HDFC Bank Ltd. (for term loan of Rs 5.35 Lacs)

At the rate of 11%. Repayble in 36 monthly installment (with interest) of Rs. 17356/-each, starting from 19.12.2009.

(3) Term loan from IDBI Bank is secured against:

(i) First charge on the Carbon Credits receivables of the sale of Carbon Credits in a manner satisfactory to IDBI Bank. The company to obtain IMOC from Bank of Baroda (BoB) and other charge holders, if any to perfect the security.

(ii) Unconditional and irrevocable personal guarantees of Shri Pramod Agarwal,Managing Director and Arun Goel, Executive Director of the company.

(iii) Exclusive first charge on the Escrow account to be opened with IDBI Bank for receipt of sale proceeds of Carbon Credits.

1. Contingent Liabilities and Commitments (to the extent not provided for)

Contingent Liabilities

Guarantees 8,000,000 18,765,000

Sales Tax 1,363,924 -

Customs, Excise & Service Tax 1,683,603 1,683,603

2. Since the Company operates in a single segment i.e. "Paper & Paper Board", Accounting Standard (AS) 17-"Segment Reporting" issued by the Institute of Chartered Accountants of India is not applicable.

3. Balances of Sundry Debtors, Creditors and Advances as at 31st March, 2012 are subject to confirmation.

4. In the opinion of the Board of Directors, Current Assets, Loans and Advances have value on realisation in the ordinary course of the business at least equal to the amount at which they have been stated in the Balance Sheet as at 31.3.2012.

5. In the absence of information from creditors of their status, the amount due to small and micro enterprises is not ascertainable.

6. The financial statements for the year ended 31st March 2011 had been prepared as per the then applicable, pre-revised Schedule VI of the Companies Act. 1956. Consequent to the notification under the Companies Act, 1956, the financial statements for the year ended 31st March 2012 are prepared under revised Schedule VI. Accordingly, the previous year figures have also been reclassified to conform to this year's classification.

The accompanying notes, form an integral part of the Financial Statements.

---

Mar 31, 2011

1. Estimated amourt of contracts remaining to be executed on capital account and not provided for Nil (Previous Year Rs. Nil

2. CONTINGENT LIABILITIES. NOT PROVIDED FOR:

CURRENT YEAR PREVIOUS YEAR RUPEES RUPEES

(i) Counter Guaranites 1,87,65,000.00 1,70,00,000.00

3. Term loan from Bank of Boards is secured against hypothecation of Plant & Machinery, Land & Building (both present & future) of the Company and extension of hypothecation over stock & book debts of the company and also personal guarantee of Directors/Promoters of the Company.

4. Term loan from IDBI Bank, is secured against;-

i. First charge on the Carbon Credits receivables of the sale of Carbon Credits in a manner satisfactory to IDBI Bank. The company to obtain NOC from Sank of Baroda (BoB) and other charge holders, if any, to perfect the security.

ii. Unconditional and irrevocable personal guarantees of Shri Pramod Agarwal, Managing Director, and Shri Arun Goei, Executive Director of the company.

iii. Exclusive first charge on the Escrow account to be opened with IDBI Bank for receipt of sale proceeds of Carbon Credits.

5. Working Capital facilities from Bank of Baroda are secured toy

i. Equitable Mortgage of land bearing khasra no. 174,43, 44/1, 43,33, 29, 42/2 situated at Village Nagla Islam, Pargana Kiratpur Tehsil Nasibabad Dlstt, Bijnore.

ii. Hypothecation of Plant & Machinery, stocks and Book Debts of the Company all situated at Kiratpur Distt. Bijnore.

6. Deferred liabilities are secured by hypothecation of respective Vehicles and guaranteed by Directors of the Company.

Total Installments falling due with in next year Rs. 5.20 Lacs (Previous Year Rs, 15,22 Lacs).

7. The account has been classified by the bank under Non Performing Assets (NPA) category.

8. In the opinion of Board of Directors, Current Assets, Loans and Advances have a value on realisation In the ordinary course of business of the Company at least equal to the amount at which they are stated and the provisions for all known and determined liabilities (except as otherwise stated) are adequate and not in excess of the amount reasonably stated as at 31st March, 2011.

9. Balersces of Sundry Debtors, Creditors, Advances from Customers, Sundry Advances and Security Deposits as on 31,03.2011 are subject to confirmation.

10. In the absance of information from Creditors regarding their status, the amount due to Small and Medium Enterprises is not ascertainable.

11. Since the Company operates in a single segment i.e. "Paper & Paper Board", Accounting Standard (AS) 17-"Segment Reporting" issued by the Institute of Chartered Accountants of India is not applicable.

12. The Earning per Share(EPS), the numerators and denominators used to calculate Basic and Diluted Earning per Sharer-

Related Party Disclosures is as under :-

1. Name of related parties and description of relationship:

(A).Key Management Personnel 1. Shri Parmod Kumar, Chairman cum Managing Director

2. Shri Arun Goel, Executive Director

(B).Companies controlled by Baghauli Sugar and Distillery Directors / Relatives Limited

2. There is no provision for doubtful debts or amounts written off or written back during the period in respect of dues from or to related parties.

3. Summary of Transactions; (Rs.in lacs)

The particulars given above have been identified on the basis of information available with the Company.

13. Pursuant to the Accounting Standard (AS)-22 accounting for taxes on income issued by The Institute of Chartered Accountants of India applicable from 1.4.2002, deferred tax Assets of Rs,305.86 lacs (Previous Year deferred tax liability Rs. 6.18 lacs ) for the year ended 31.03.2011 has been provided to Profit & Loss Account.

14. Previous year figures have been re-grouped and re-arranged wherever necessary.

15. Generic Names of Principal Products/Services of Company

(As per Monetary Terms) (i) Items Code No. (ITC Code) 4801,4802, 4804 & 4805 (ii) Product Description News Prints, Writing & Printing paper & Duplex Board

Schedule 1 to 19 forms an integral part of Balance Sheet and Profit & Loss Account