Financial Performance Highlights

Working Results (Comparative 4-Year Analysis)

| Metric | FY 2025-26 | FY 2024-25 | FY 2023-24 | FY 2022-23 |

| Finished Production (MT) | 90,457 | 76,721 | 69,833 | 50,867 |

| Conversion Quantity at Box Plant (MT) | 25,709 | 23,918 | 25,789 | 28,068 |

| Revenue from Operations (₹ lakhs) | 43,381.21 | 36,931.47 | 31,230.62 | 28,785.11 |

| Profit/(Loss) before interest, depreciation & tax (₹ lakhs) | 5,126.63 | 2,252.99 | 1,870.57 | (502.35) |

| Finance costs (₹ lakhs) | 2,027.08 | 1,962.27 | 1,838.27 | 1,624.38 |

| Profit/(Loss) after tax (₹ lakhs) | 1,074.11 | (964.07) | (1,342.77) | (1,667.19) |

Key Financial Metrics

  • Revenue Growth: 17.46% increase to ₹433.81 crores from ₹369.31 crores in previous year
  • Capacity Utilization: Paper Mill improved to 78.32% from 66.43%; Packaging Division at 71.41% from 66.44%
  • PBDIT: Improved to ₹5,127 lakhs from ₹2,253 lakhs due to higher volumes and improved product mix
  • Finance Costs: Increased slightly to ₹2,027 lakhs (working capital: ₹620 lakhs; other loans: ₹1,407 lakhs)
  • Taxation: Company opted for new tax regime (25.17% effective rate); deferred tax charge of ₹362 lakhs
  • Cash Flow: Operating profits of ₹5,126.63 lakhs generated surplus of ₹603.51 lakhs after debt obligations
  • Ratios: Long-term debt-to-equity improved to 0.53 from 0.63; current ratio at 1.14 from 1.00

Operations Update

  • Production increased across both paper manufacturing and packaging divisions
  • Profitability improvement attributed to higher value-added grades and operational efficiencies
  • Paper Mill operating PM6 machine exclusively after scrapping old machines

Capital Structure & Financing

  • Loan Repayments: ₹2,496.04 lakhs repaid during FY26
  • Debt Obligations FY27: Minimum ₹4,020 lakhs required (repayments: ₹2,100 lakhs; interest: ₹1,920 lakhs)
  • Planned Capex: ₹2,400 lakhs for energy saving and process efficiency with ₹1,800 lakhs term loan
  • Dividend: No dividend recommended for FY26 to conserve funds for operations and capex

Credit Rating Developments

  • ICRA Rating (June 2024): Downgraded long-term rating from [ICRA]BBB- (negative) to [ICRA]BB+ (negative); short-term from [ICRA]A3 to [ICRA]A4+
  • Company Response: Discontinued assignment with ICRA despite timely debt servicing
  • Acuite Ratings (September 2025): Assigned BB rating despite quarterly profits; company rejected this "irrational downgrade"
  • Future Plans: Seeking proper credit rating aligned with improved performance in current year

Corporate Governance & Directors

Board Changes

  • Appointment of four Independent Directors approved by shareholders via Postal Ballot on June 29, 2025:
  • Mr. Gomatam Raghavan Ravi (DIN 06662567)
  • Mr. Nagaraja Srivatsa (DIN 02805712)
  • Mr. Purushotham Javaregowda (DIN 03332807)
  • Mrs. Gargi Ojha (DIN 11024179)
  • Retirement by Rotation: Mr. Ajay D Patel (DIN 00466905) retires and offers himself for reappointment
  • Age Limit Consideration: Mr. Harshad Natvarlal Modi (DIN 0167613) will attain 75 years on August 18, 2027; special resolution proposed for continuation considering his paper industry experience

Board Evaluation

  • Annual evaluation carried out pursuant to Companies Act and SEBI LODR Regulations
  • Separate meeting of Independent Directors held on March 28, 2026 expressed overall satisfaction
  • Board comprises 10 directors with 50% being Independent & Non-Executive Directors

Managerial Remuneration

Executive Directors

  • Mr. Manish M Patel (CMD): Total remuneration ₹125.07 lakhs (Salary: ₹90 lakhs; Perquisites: ₹27.62 lakhs; PF: ₹0.22 lakhs; Superannuation: ₹7.25 lakhs)
  • Mr. Kanishka Harshad Modi (WTD): Total remuneration ₹88.50 lakhs (Salary: ₹60 lakhs; Perquisites: ₹28.50 lakhs)

Non-Executive Directors

  • Total sitting fees: ₹5.50 lakhs
  • Total commission: ₹16.40 lakhs (shared equally among non-whole time directors)
  • Ratio of MD remuneration to median employee remuneration: 21:1

Compliance & Regulatory Matters

Secretarial Audit

  • Appointed Mr. S N Hitaish Kumar, Practicing Company Secretary (CP No. 6553)
  • One-day delay in filing Regulation 74(5) compliance certificate for March 2025 quarter due to non-receipt from RTA
  • No other adverse comments or material violations reported

Other Appointments

  • Internal Auditor: M/s Rau and Nathan Chartered Accountants (Firm Regn. No.003178S)
  • Cost Audit: Not applicable as products not notified for cost audit in FY26

Risk Management

  • Risk Management Committee comprises Mr. Manish M Patel (Chairman), Mr. Gomatam Ravi, and Mr. Nagaraja Srivatsa
  • Framework established to identify and evaluate business risks and opportunities
  • Appropriate procedures in place to inform Board about risk assessment and minimization

Employee Relations

  • Total Employees: 344 (338 male, 6 female, no transgender)
  • Industrial Relations: Cordial and harmonious climate
  • Wage Settlements:
  • Paper Mill: 4-year agreement valid until March 31, 2026; negotiations for new agreement in progress
  • Box Unit: 4-year agreement signed April 2026 valid until March 31, 2028

Certifications & Compliance

  • ISO 9001:2015: Valid for Printing & Packaging Division until May 17, 2027
  • FSC Certification: Maintained for environmental protection and chain of custody standards
  • Sexual Harassment: No cases filed during the year; Internal Complaints Committee constituted
  • Environmental Compliance: ETP functioning satisfactorily; effluent water utilized for irrigation

Other Disclosures

  • CSR: No obligation for FY26 due to losses in FY25
  • Related Party Transactions: No material conflicts of interest; details provided in Form AOC-2
  • Deposits: No deposits accepted or renewed during the year
  • Loans/Investments: No loans, guarantees, or investments under Section 186 of Companies Act
  • Material Changes: No change in nature of business or material commitments post-year end

Forward Outlook

  • Challenges from West Asia war leading to higher fuel prices and input costs
  • Company able to pass on input costs thus far but continued volatility remains concern
  • Demand for value-added products robust; expects to improve earnings with optimum scale
  • Market conditions competitive but favorable for quality products in company's segment
  • Exploring opportunities in new areas of value-added grades

AGM Agenda Items

1. Adoption of financial statements and reports

2. Reappointment of Mr. Ajay D Patel who retires by rotation

3. Special resolution for continuation of Mr. Harshad Natvarlal Modi beyond age 75

4. Special resolution for remuneration of Mr. Manish M Patel (CMD)

5. Special resolution for remuneration of Mr. Kanishka Harshad Modi (WTD)