The accounting policies mentioned herein are relating to the standalone financial statements of the Company.

a) Brief description of the Company

Shree Karthik Papers Limited having CIN: L21012TZ1991PLC003570 is a public company domiciled in India and
is incorporated under the provisions of the Companies Act, 1956. Its shares are listed in a recognised stock
exchange in India. The registered office of the Company is located at No. 83, School Road, Krishnaswamy
Nagar, Ramanathapuram, Coimbatore, Tamil Nadu, 641045. The Company is primarily engaged in the business
of manufacturing of Papers. Its manufacturing facility is situated at SF.NO.387,388,390 and 391 Puliangudi,
Kottur Village, Aliyar, Pollachi, Tamil Nadu.

b) Basis of preparation

The financial statements comply in all material aspects with the Indian Accounting Standards (Ind AS) notified
under Section 133 of the Companies Act, 2013 (the Act) [Companies (Indian Accounting Standards) Rules,
2015] and other relevant provisions of the Act.

The financial statements have been prepared on the historical cost convention under the accrual basis of
accounting except for certain financial assets and liabilities (as per the accounting policy below), which have
been measured at fair value and the statements are prepared on a Going Concern basis.

c) Use of estimates

The preparation of financial statements requires management to make certain estimates and assumptions
that affect the amounts reported in the financial statements and notes thereto. The management believes
that these estimates and assumptions are reasonable and prudent. However, actual results could differ from
these estimates. Any revision to accounting estimates is recognised prospectively in the current and future
periods.

This note provides an overview of the areas that involve a higher degree of judgement or complexity, and
of items that are more likely to be materially adjusted due to estimates and assumptions turning out to be
different than those originally assessed. Detailed information about each of these estimates and judgments is
included in the relevant notes together with information about the basis of calculation for each affected line
item in the financial statements where applicabl.

d) Significant Estimates and judgements

Significant accounting Judgments, estimates, and assumptions:

The preparation of financial statements in conformity with the recognition and measurement principles of Ind
AS requires management to make judgments, estimates, and assumptions that affect the reported balances
of revenues, expenses, assets and liabilities, the accompanying disclosures, and the disclosure of contingent
liabilities. Uncertainty about these assumptions and estimates could result in outcomes that require a material
adjustment to the carrying amount of assets or liabilities affected in future periods.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting
estimates are recognised in the period in which the estimate is revised if the revision affects only that period
or in the period of the revision and future periods if the revision affects both current and future periods.

The following are the areas of estimation uncertainty and critical judgments that the management has made
in the process of applying the Company's accounting policies:

1) Recognition of deferred tax assets:

The extent to which deferred tax assets can be recognised is based on an assessment of the probability of the
future taxable income against which the deferred tax assets can be utilized.

2) Provision and contingent liability:

On an ongoing basis, the Company reviews pending cases, claims by third parties, and other contingencies.
For contingent losses that are considered probable, an estimated loss is recorded as an accrual in financial
statements. Loss contingencies that are considered possible are not provided for but disclosed as Contingent
liabilities in the financial statements. Contingencies, the likelihood of which is remote, are not disclosed in the
financial statements.

3) Useful lives of depreciable assets:

Management reviews the useful lives of depreciable assets at each reporting. As of March 31,2023 management
assessed that the useful lives represent the expected utility of the assets to the Company. Further, there is no
significant change in the useful lives as compared to the previous year.

4) Evaluation of indicators for impairment of assets:

The evaluation of applicable indicators of impairment of assets requires the assessment of several external
and internal factors that could result in the deterioration of the recoverable amount of the assets.

5) Defined benefit obligation:

Management's estimate of the Defined Benefit obligation is based on a number of underlying assumptions
such as standard rates of inflation, mortality, discount rate, and anticipation of future salary increases.
Variations in these assumptions may impact the obligation amount and the annual defined benefit expenses.

6) Fair value measurements:

Management applies valuation techniques to determine the fair value of financial instruments (where active
market quotes are not available). This involves developing estimates and assumptions consistent with how
market participants would price the instrument.

e) Revenue recognition

1. Sale of goods:

The Company recognizes the sale of goods when the significant risks and rewards of ownership is transferred
to the buyer.

2. Interest Income:

Interest income, including income arising from other financial instruments, is recognised using the effective
interest rate (EIR) method. EIR is the rate that exactly discounts the estimated future cash payments or receipts
over the expected life of the financial instrument or a shorter period, where appropriate, to the gross carrying
amount of the financial asset or the amortized cost of a financial asset. When calculating the effective interest
rate, the company estimates the expected cash flows by considering all the contractual terms of the financial
instrument but does not consider the expected credit losses. Interest income is included in "Other income"
in the statement of profit and loss. The expected cash flows are reassessed on a yearly basis and changes, if
any, are accounted prospectively.

f) Property, Plant and Equipment

Freehold Land is carried at historical cost. All other items of Property, Plant and Equipment are stated at
cost of acquisition or construction less accumulated depreciation/amortization and impairment, if any. Cost

includes purchase price, taxes and duties, labour cost, and directly attributable overheads incurred up to the
date the asset is ready for its intended use. However, cost excludes Goods and Services Tax to the extent credit
of the tax is availed of.

Subsequent costs are included in the asset's carrying amount or recognised as a separate asset, as appropriate,
only when it is probable that future economic benefits associated with the item will flow to the Company and
the cost of the item can be measured reliably. The carrying amount of any component accounted for as a
separate asset is derecognised when replaced. All other repairs and maintenance are charged to Profit or Loss
during the reporting period in which they are incurred.

Gains and losses on disposals are determined by comparing proceeds with carrying amounts. These are
included in the statement of profit and loss when the asset is disposed off or derecognised.

g) Depreciation and amortization

Depreciation on Property, Plant, and Equipment (PPE) is provided under straight-line method as perthe useful
lives and manner prescribed under Schedule II to the Companies Act, 2013, except for a few categories where
the company has received technical opinion for adopting higher /lower useful life.

Where the cost of a part of the PPE is significant to the total cost of the PPE and if that part of the PPE has a
different useful life than the main PPE, the useful life of that part is determined separately for depreciation.

Improvements to Leasehold Buildings are amortized as depreciation over the lease period, which is considered
as the estimated useful life by the management.

The depreciation method applied to an asset is reviewed at each financial year-end and if there has been a
significant change in the expected pattern of consumption of future economic benefits embodied in the asset,
depreciation is charged prospectively to reflect the changed pattern.

Depreciation in respect of tangible assets costing less than Rs. 5,000/- is provided at 100%.

h) Impairment

Assets are tested for impairment whenever events or changes in circumstances indicate that the carrying
amount may not be recoverable. An impairment loss is recognised for, the amount by which the asset's
carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset's fair value
less the costs of disposal and value in use. For the purposes of assessing impairment, assets are grouped at
the lowest levels for which there are separately identifiable cash inflows which are largely independent of the
cash inflows from other assets or groups of assets (cash-generating units). Non-financial assets that suffered
an impairment are reviewed for possible reversal of the impairment at the end of each reporting period.

i) Foreign currency translation

Functional and presentation currency

The financial statements are presented in Indian Rupee which is also the functional and presentation currency
of the Company. All amounts have been rounded off to the nearest rupee.

No foreign currency transactions occurred during the year.

j) Inventories

All inventories are valued at moving weighted average price. Finished goods and Work in progress are
computed based on the respective moving weighted average price of procured materials and the appropriate
share of labour and other manufacturing overheads.

Inventories are valued at cost or net realizable value, whichever is lower. Cost also includes all charges incurred
for bringing the inventories to their present location and condition. Excise and customs duty accrued on the
production or import of goods, as applicable, is included in the valuation of finished goods.

Inventories of stores and spare parts are valued at cost.

Net realizable value is the estimated selling price in the ordinary course of business, less estimated costs of
completion and to make the sale.

k) Employee benefits

1. Short Term and other long-term employee benefits:

A liability is recognised for benefits accruing to employees in respect of wages and salaries, annual leave, and
sick leave in the period the related service is rendered at the undiscounted amount of the benefits expected
to be paid in exchange for that service.

Liabilities recognised in respect of short-term employee benefits are measured at the undiscounted amount
of the benefits expected to be paid in exchange for the related service.

Liabilities recognised in respect of other long-term employee benefits are measured at the present value of
the estimated future cash outflows expected to be made by the Company in respect of services provided by
employees up to the reporting date.

Compensated leave absences are encashed by employees at year end and no carry forward of leave is
permitted as per the leave policy.

2. Post-Employment Benefits

a. Defined Contribution Plans

A defined contribution plan is a post-employment benefit plan under which the Company pays specified
contributions to a separate entity. The Company makes specified monthly contributions towards the Provident
Fund and Superannuation Fund. The Company's contribution is recognised as an expense in the Statement of
Profit and Loss during the period in which the employee renders the related service.

b. Defined Benefit Plans

For defined benefit retirement plans, the cost of providing benefits is determined using the projected unit
credit method, with actuarial valuations being carried out at the end of each annual reporting period.
Re-measurement, comprising actuarial gains and losses, the effect of the changes to the asset ceiling (if
applicable), and the return on plan assets (excluding interest), is reflected immediately in the statement of
financial position with a charge or credit recognised in OCI in the period in which they occur. Re-measurement
recognised in other comprehensive income is reflected immediately in retained earnings and will not be
reclassified to profit or loss. Past service cost is recognised in profit or loss in the period of a plan amendment.

I) Taxes on income

Tax expense comprises current and deferred tax.

1. Current income tax:

Current income tax assets and liabilities are measured at the amount expected to be recovered from or paid to
the taxation authorities. The tax rates and tax laws used to compute the amount are those that are enacted or
substantively enacted, at the reporting date. Current income tax relating to items recognised directly in equity
is recognised in other comprehensive income/equity and not in the statement of profit and loss. Management
periodically evaluates positions taken in the tax returns with respect to situations in which applicable tax
regulations are subject to interpretation and establishes provisions where appropriate.

2. Deferred tax

Deferred tax is provided on temporary differences between the tax bases of assets and liabilities and their
carrying amounts for financial reporting purposes at the reporting date. Deferred tax assets are recognised
for all deductible temporary differences, the carry forward of unused tax credits, and any unused tax losses.
Deferred tax assets are recognised to the extent that it is probable that taxable profit will be available against
which the deductible temporary differences and the carry forward of unused tax credits and unused tax losses
can be utilized.

The carrying amount of deferred tax assets is reviewed at each reporting date and reduced to the extent that
it is no longer probable that sufficient taxable profit will be available to allow all or part of the deferred tax
asset to be utilized.

Unrecognised deferred tax assets are re-assessed at each reporting date and are recognised to the extent that
it has become probable that future taxable profits will allow the deferred tax asset to be recovered.

Deferred tax assets and liabilities are measured based on tax rates (and tax laws) that have been enacted or
substantively enacted at the reporting date.

3. Minimum Alternate Tax:

Minimum Alternate Tax (MAT) paid in accordance with the tax laws, which gives future economic benefits in
the form of adjustment to future income tax liability, is considered an asset if there is convincing evidence that
the Company will pay normal income tax. The carrying amount of MAT is reviewed at each reporting date and
the asset will be written down to the extent the company's right of adjustment would lapse.

Accordingly, MAT is recognised as an asset in the Balance Sheet when it is highly probable that future economic
benefits associated with it will flow to the Company.