Your Directors take pleasure in presenting the 29th Annual Report on the business and operations together with Audited
Financial Statements of your Company for the financial year ended 31st March 2026.

FINANCIAL HIGHLIGHTS

The summarized financial results of the Company for the financial year 2025-26 are given hereunder:

(Rs. in Crores)

DIVIDEND

Considering the satisfactory business operations during the
year under review, your Directors have proposed a dividend
of Rs. 2.50/- (i.e. @ 250%) per share (previous year Rs. 3/-
per share) on the Equity Shares of Re. 1.00 each for financial
year2025-26.

Subject to the provisions of Companies Act, 2013, final
dividend on Equity Shares as recommended by the Board of
Directors, if declared at the ensuing Annual General Meeting,
will be paid within 30 days of the declaration of same.

OPERATIONAL PERFORMANCE HIGHLIGHTS

The financial year 2025-26 was a year of satisfactory
operational delivery and strategic execution for Kuantum
Papers, reaffirming its position as one of the most efficient
and resilient players in the Indian paper industry. The
Company maintained high levels of asset utilization, achieved
record production volumes, advanced its sustainability
agenda, and delivered one of the industry’s satisfactory
EBITDA margins driven by disciplined cost management,
integrated operations, and a focus on long-term value
creation.

This performance is particularly noteworthy in light of the
challenging external environment. The Indian paper industry
faced significant headwinds, including a surge in low-priced
imports that led to an oversupplied market and weakened
domestic realizations. Simultaneously, input costs, especially
for domestic wood and agro residue rose high due to

constrained supply chains, floods in Punjab and rising
competition from other wood and agro residue dependent
sectors. The 2026 US-Israel war on Iran triggered a major
global economic shock, characterized by surge in oil prices,
chemicals and other inputs. These adverse dynamics placed
continued pressure on industry- wide profitability.

Despite these external pressures, Kuantum delivered a
resilient and industry-leading performance. Net Sales
Realization (NSR) declined by approximately 3-4%, the
Company. Vis a Vis the industry peers, the Company was able
to maintain satisfactory EBITDA margin of 15.4%. This
outcome underscores Kuantum’s structural cost advantages,
operational agility, and commitment to efficiency.

The Company achieved its highest ever finished paper
production of 1,62,885 MT surpassing previous year’s 160,861
MT. This milestone was enabled by strong process stability
and full- capacity operation of paper machines. Both wheat
straw and hardwood pulp mills operated at optimal levels,
ensuring sustainable and cost-effective pulp production. The
installation of Twin Roll Presses (TRPs) in both pulp lines
significantly improved washing efficiency, reduced chemical
consumption, and enhanced fibre yield-contributing to both
cost reduction and environmental performance.

Kuantum commenced use of canal-based surface water in
previous year, in partnership with the Department of Water
Resources, Punjab. This transition has substantially reduced
dependence on groundwater and strengthened the
Company’s long-term water management strategy.

The Company also advanced its digital transformation
journey through ‘Project Nirmaan’, focused on embedding
smart technologies across operations. The deployment of
Advanced Process Control (APC) systems and Industry 4.0
tools has improved process stability, energy efficiency, and
real-time decision-making laying the groundwork for
predictive maintenance and intelligent operations.

In summary, FY 2025-26 was a year marked by resilience,
innovation, and high performance for Kuantum Papers. The
Company’s balanced plant configuration, cost-efficient agro
and wood pulping systems, and sustained investments in
automation, digitalization, water security, and backward
integration have strengthened its leadership position in
profitability, sustainability, and future-ready manufacturing.

PROJECT & FUTURE OUTLOOK

In alignment with its strategic vision for sustainable growth
and operational excellence, Kuantum Papers Ltd. has
embarked on a transformative capital expenditure program of
Rs. 735 Crores. This comprehensive initiative is focused on
modernizing existing infrastructure, expanding production
capacities, integrating advanced technologies, and
strengthening environmental and digital capabilities to
future-proof operations.

The capital investment plan includes the modernization of all
four paper machines, equipping them with state-of-the-art
technologies to enhance productivity, energy efficiency, and
product quality. To diversify its product portfolio and cater to
evolving customer needs, the Company is establishing new
converting and offline coating facilities, enabling entry into
high-growth coated, flexible packaging base, and other
specialty paper segments.

Major enhancements in the pulp mill are underway, including
the implementation of a Displacement Digester System (DDS)
in the hardwood line to improve yield, reduce steam
consumption, and stabilize pulp quality. The upgradation of
both agro and hardwood pulp mills, supported by new Twin
Roll Presses and improved chip washing systems, is driving
operational efficiency and sustainability.

On the utilities front, the recovery boiler is being modernized
to meet evolving environmental norms, and a new lime kiln is in
the process of installation to support the chemical recovery
cycle and improve operational stability. Energy efficiency
upgrades in the power plant, including turbine enhancements
and optimized fuel systems, are further reducing the
Company’s carbon footprint.

In water and effluent management, Kuantum has
commissioned a dedicated canal-based water supply
pipeline and Water Treatment Plant (WTP) equipped with
advanced clarifiers and storage tanks to ensure sustainable
water usage. Simultaneously, upgrades to the Effluent
Treatment Plant (ETP) have enhanced wastewater treatment
efficiency and regulatory compliance.

Complementing its physical infrastructure, the Company has
accelerated its digital transformation journey. Under ‘Project
Neev’ Kuantum is deploying dataPARC, a data visualization
and analytics platform, to drive real-time operational
intelligence. Building on this foundation, ‘Project Nirmaan’ is
integrating Artificial Intelligence (AI) and Advanced Process
Control (APC) technologies into key manufacturing

processes to boost efficiency, reliability, and predictive
maintenance capabilities. These initiatives are being
executed in a phased manner, drawing on the collective
expertise of global partners and in-house teams.

Upgradation & expansion projects has been commissioned in
a phased manner and is likely to be completed in all respect by
30th September 2026 except Offline Coater Plant which may
extend upto 31st March 2027.

Looking ahead, Kuantum Papers Ltd. is poised to emerge
stronger, smarter, and more competitive. As the Indian
economy continues its upward trajectory and demand for
sustainable, value-added paper grades accelerates, these
initiatives are expected to yield substantial long-term
benefits-including increased production capacity, improved
cost efficiencies, superior product quality, and enhanced
profitability. With execution progressing on all fronts and a
robust foundation now in place, the Company is well-
positioned to deliver enduring value to its stakeholders and
reinforce its leadership in the Indian paper industry.

Building on this strong operational foundation, the Company
has initiated a forward-looking capital investment program to
further accelerate growth and innovation.

RECOGNITION AND RESEARCH

Awards:

Kuantum Papers Ltd. has been recognized for its exemplary
contributions to environmental stewardship, workplace
safety, and energy efficiency. Some of the notable awards
received by the company in recent years include:

• Best Oral Paper Presentation for the study titled “Role and
Suitability of Bamboo for the Pulp and Paper Industry.”

• Best Poster Presentation for the work on “Bamboo to
Paper: Integrated Approach for Environmental
Conservation.”

• Appreciation Award under the category ‘Best Energy
Efficient Designated Consumer’ (under the BEE PAT
Scheme) by the Confederation of Indian Industry (CII) for
the year 2024.

Publications:

The company’s commitment to innovation and sustainability
is also reflected in its recent abstracts published and
presented at reputed conferences during 2025-26:

• “Driving Water Circularity and Sustainability” - Paper
Mart, June, 2025.

• “Driving Mill Excellence and Sustainability at
Kuantum Papers: Integrating Best Practices and
Advanced Process Control 2025” - 17th International
Conference and Exhibition on Pulp, Paper and Allied
Industries, December, 2025.

• “Clonal Propagation of Casuarina Clone CH-1 for a
Sustainable Future of Farmers and Alternate for Paper
Industry” - TREESCAPES, February, 2026.

• “Clonal Propagation and Agroforestry: Securing Quality
Industrial Wood and Sustainable Future” - TREESCAPES,
February, 2026.

These publications reflect Kuantum’s strong commitment
towards research and sustainable practices, continuous
innovation, and meaningful contributions to the scientific and
industrial community. Through its focus on environmental
responsibility and operational excellence, the company
continues to strengthen its standing as a leading player in the
pulp and paper industry.

INDUSTRY STATUS

Paper Industry is a significant player in the World Economy.
The four key Paper categories are: Newsprint, Printing and
Writing Papers, Paper Boards for packaging applications,
Tissue Papers & other Specialty Papers. Packaging grades
account for over 55% of consumption, Printing and Writing
grades over 35%, Tissue Papers 7-8% and others about 2-3%.
Tissue and Packaging grades are expected to witness higher
growth rates in the future.

Due to increased adoption of paper-based packaging
materials, the wrapping & packaging segment is set to lead
the paper market. Another significant sector is sanitary
segment backed by rising disposable income and awareness
of personal hygiene in emerging economies.

The Indian paper industry accounts for about 5% of the
world’s production of paper. The estimated annual turnover of
the industry is Rs. 80,000 Crore and its tax contribution to the
exchequer is around Rs. 5,000 Crore. The industry provides
direct employment to 0.5 million persons, and indirectly to
around 1.5 million.

Most of the paper mills are in existence for a long time and
hence present technologies fall in a wide spectrum ranging
from oldest to the most modern. The mills use a variety of raw
material viz. wood, bamboo, recycled fibre, bagasse, wheat
straw and grasses. In terms of share in total production,
approximately 18% are based on wood, 73% on recycled fibre
and 9% on agro residues. The geographical spread of the
industry, as well as market, is mainly responsible for the
regional balance of production and consumption.

The Paper Industry holds immense potential for growth in
India as the per capita paper consumption in India at around
15-16 kg, which is way behind the global average of around 57
kg (200 kg for developed countries). India is the fastest-
growing market for paper globally and it presents an exciting
scenario. Paper consumption is poised for a big leap forward
in sync with economic growth. The futuristic view is that
growth in paper consumption would be in multiples of GDP
and hence an increase in consumption by one kg per
capita would lead to an increase in demand of 1 million tonnes.
Healthy demand for Printing and Writing paper and firm
realisations are further expected to drive growth for this
segment of paper manufacturing companies.

India's paper industry, the 15th largest globally, is set to grow
significantly, with a projected market value of USD 19.1 billion
by 2033, driven by rising demand.

However, there was a downtrend observed in the paper
industry in FY26 on the back of fall in the realizations despite
higher input costs on the back of increased competition from
imports and ongoing war in Middle East. The domestic paper
market faced an oversupply issue, primarily caused by a
significant rise in net imports, particularly from China and
ASEAN countries, which reduced realisations. Furthermore,
the cost of raw materials (domestic wood) surged to higher
levels as other wood-based industries heightened their
demand, coinciding with a decreased wood supply. This
combination of increased imports and soaring wood prices
severely pressured the profit margins of paper
manufacturers.

However, rebound is expected as the adoption of New
Education policy is likely to boost the demand for WPP
segment along with increasing penetration of specialized and
conventional packaging in sectors such as FMCG, healthcare,
e-commerce, pharmaceuticals, etc. Other key demand
factors will include a focus on innovative and attractive
packaging and the shift from plastic to paper-based
packaging in the FMCG and food & food product sectors.

NATIONAL EDUCATION POLICY 2020

The Government announced the new National Education
Policy (the NEP 2020) to focus on providing education that is
equitable, accessible, high-quality, and affordable. The New
Education Policy was implemented in academic year 2023¬
24. With the gradual implementation of the NEP, rise in the
education spend by the Government, and increased thrust on
education through initiatives such as Sarva Shiksha
Abhiyaan/ Education of All, the Printing & Writing paper
demand is expected to increase sharply. The policy acts as a
roadmap to revolutionize schooling and higher education in
India that will support and foster a lifelong learning culture to
maximize the rich talents and resources the country has to
offer. The NEP 2020 is a giant leap in a list of initiatives taken
by the government in achieving Goal 4 (SDG4) of the 2030.
The policy recognises the ever-changing knowledge and
employment landscape in our global ecosystem and focuses
on curricular and pedagogy reform, aligning it with
international standards and making India a vibrant knowledge
economy and a nation of thought leaders. The impending
changes in the education policy and curriculum, alongwith
the introduction of textbooks in 22 languages in alliance with
NCERT and Ministry of Education are bound to create a huge
demand for Writing and Printing paper to meet the needs of
new Indian education system.

BAN ON SINGLE USE PLASTIC

The ban on the use of plastics in a wide variety of applications
that has been put in place by the Govt of India with effect from
July 01, 2022, has given a big boost to paper production for
new paper products, which will provide the most sustainable
and right replacement of single use plastics. These new
varieties of paper qualities are finding their way into the
market, filling up the huge gap left behind by the plastic ban.

PAPER IMPORT MONITORING SYSTEM (PIMS)

To regulate the import of paper as also to promote the
flagship schemes like “Make in India” and “Aatmanirbhar
Bharat,” the Government has brought the imports of paper
under compulsory registration from the 1st October, 2022.
The import policy of major paper products, such as newsprint,
handmade paper, wallpaper base, duplicating paper, coated
paper, uncoated paper, Maplitho and offset paper, excluding
currency paper, bank bonds and cheque paper and security
printing paper, has been amended from ‘Free’ to ‘Free subject
to compulsory registration under Paper Import Monitoring
System’ by the Directorate General of Foreign Trade.

FINANCE

(i) Term Loan for Capex Project

The ongoing capex project of Rs. 735 crores for mill wide
upgradation & modernization are being funded by mix of
debt & internal accruals/promoters’ contribution. The
Company has tied-up loan amount of Rs. 535 crores and
balance Rs. 200 crores are being provided out of internal
accruals/promoters’ contribution.

(ii) Working Capital

Banks have sanctioned/renewed the working capital
limits amounting to Rs. 216.55 crores (fund based Rs. 100
crores, non-fund based Rs. 116.55 crores) during the year
under review.

(iii) Fixed Deposits

As on 31st March, 2026, your Company had Fixed
Deposits of Rs. 31.30 Crores. There were no overdue
deposits as on 31st March, 2026. The above deposits have
been accepted for a period of 1 year to 3 years as per the
Fixed Deposit Schemes duly approved by the Board of
Directors pursuant to the compliance of the provisions of
Sections 73 to 76 of Companies Act, 2013 read with the
Companies (Acceptance of Deposit) Rules 2014.

HOLDING / SUBSIDIARIES / JOINT VENTURES /
ASSOCIATE COMPANIES

Your Company does not have any subsidiary/joint ventures
or associate company within the meaning of the Companies
Act, 2013. Kapedome Enterprises Limited is the holding
company having 66.51% equity capital of the Company.

CORPORATE SOCIAL RESPONSIBILITY (CSR)

As per requirement of Section 135 of the Companies Act, 2013
read with Schedule VII of the said Act and further read with
Companies (Corporate Social Responsibility) Rules, 2014, the
Company has a duly constituted “Corporate Social
Responsibility Committee” consisting of following persons as
Members/ Chairman:

1. Mr Pavan Khaitan (Chairman)- Executive Director

2. Ms Shireen Sethi -Independent, Non-Executive Director

3. Mr Jagdeep Hira - Whole Time Director

In pursuance of the Companies Act, 2013 and in alignment
with its vision, the Company through its CSR initiatives will
continue to enhance value creation in the society and in the
areas in which it operates, through its services, conduct and
initiatives, so as to promote sustained growth for the society
and community.

During the year under review, the Company has spent an
amount of Rs. 4.60 Crores (in addition to amounts available
for set-off) against the gross CSR obligation of Rs. 4.60
Crores and against the net CSR Obligation of Rs. 4.56 crores
(after adjustment of carried forward set off amount of Rs.

0.04 crores). Details about the CSR policy and initiatives
taken by the Company during the year are available on your
Company’s website www.kuantumpapers.com. The Report
on CSR activities is given in Annexure-1 forming part of this
Report.

The Company has fully met its CSR expenditure obligation as
required under Companies Act, 2013 read with relevant Rules
thereto.

VIGIL MECHANISM / WHISTLE BLOWER

Section 177(9) of the Companies Act, 2013 and Regulation
22 of the SEBI (Listing Obligations and Disclosure
Requirements) Regulations, 2015, inter alia, provide for a
mandatory requirement for all listed companies to establish a
mechanism called the ‘Whistle Blower Policy’ for Directors
and employees to report concerns of unethical behavior,
actual or suspected, fraud or violation or the Company’s code
of conduct or ethics policy. In line with this requirement, the
Company has framed a “Whistle Blower Policy”, which is
p l a c e d o n t h e C o m p a n y ’ s w e b s i t e i . e .
www.kuantumpapers.com. No complaint has been received
during the year under review.

RISK MANAGEMENT

In line with the regulatory requirements, the company has
framed a ‘Risk Management Policy’ to identify and assess the
key risk areas, monitor, and report compliance and
effectiveness of the policy and procedure. A Risk
Management Committee has also been constituted to
oversee this process. Pursuant to Section 134(3) of the Act
and Regulation 21 of SEBI (Listing Obligations and Disclosures
Requirements) Regulations, 2015, Risk Management
Committee is in place, comprising (i) Mr. Pavan Khaitan

(Chairman), Executive Director, (ii) Ms. Shireen Sethi,
Independent Director and (iii) Mr. Vivek Bihani, Independent
Director.

During FY 2025-26, two Meetings were held on 20th May,
2025 and 07th November, 2025, wherein, relevant mitigation
measures identified for the Company were reviewed and
discussed.

The Company believes that managing risks helps in optimizing
returns. A risk management framework has been developed
and implemented by the Company for identification of
elements of risk if any, which in opinion of Board may threaten
the existence of the Company. It aims to identify commodity
prices, price fluctuation of raw material and finished goods,
Credit Risks, Inflation, Strategic Risks, etc. The effectiveness
of risk management framework and system is periodically
reviewed by Board of Directors of the Company. At present, in
the opinion of the Board of Directors, there exists no risks
which may threaten the existence of the Company.

The speed and degree of changes in the global economy and
the increasingly complex interplay of factors influencing the
business makes Risk Management an inevitable exercise and
to cater to the same, your Company has identified major
focus areas for risk management to ensure organisational
objectives are achieved and has a robust policy along with
well-defined and dynamic structure and proactive approach
to assess, monitor and mitigate risks associated with the
business.

The Risk Management Committee is regularly informed about
the potential risks, their assessment and minimisation
procedures. The Board frames a plan for elimination /
minimisation of the risk and further lays out the steps for
implementing and monitoring of the risk management plan.
The Company is taking all the appropriate steps to avoid the
risks that arise in the Company.

The Company manages, monitors and reports on the principal
risks and uncertainties that can impact its ability to achieve its
strategic objectives. The Company’s risk management
systems and programs comprise of various processes,
structures and guidelines which assist the Company to
identify, assess, monitor, and manage its risks, including any
material changes to its risk profile. To achieve this, the
Company has clearly defined the responsibility and authority
of the Company’s Management and the Risk Management
Committee to oversee and manage these Programs. Details of
the various risks, which can affect the Company’s business
and the management’s perception, are more elaborately
given in the ‘Management Discussion & Analysis’ attached to
this Report.

INTERNAL FINANCIAL CONTROL SYSTEM AND
THEIR ADEQUACY

Effective and strong internal financial control systems are
developed in the Company for all the major processes to
ensure reliability of financial reporting, safeguarding of assets
and economical and efficient use of resources as also the
compliance of laws, regulations, policies and procedures. The
Company’s internal control systems are reviewed by an
independent firm of Chartered Accountants. The firm
independently evaluates the adequacy of internal financial
controls through periodic reviews that cover all the functions
and processes through reviewing major transactions. They
report directly to the Audit Committee which ensures
complete independence.

The Company has designed and implemented a process
driven framework for Internal Financial Controls. For the year
ended on 31st March, 2026, the Board is of the opinion that
the Company has sound Internal Financial Controls
commensurate with the size, scale and complexity of its
business operations. During the year, such controls were
tested and were operating effectively.

All the relevant Function Heads are certifying the compliance
to all applicable rules, regulations and laws every quarter to
the Board and are responsible to ensure that internal controls
over all the key business processes are operative. The scope
of the Internal Audit is defined and reviewed every year by
the Audit Committee and inputs, wherever required, are taken
from the Statutory Auditors.

Based on the report of Internal Auditors, major audit
observations and corrective actions thereon are presented to
the Audit Committee of the Board.

The Management assessed the effectiveness of the
Company’s internal control over financial reporting (as
defined in Clause 17 of SEBI Regulations 2015) as of 31st
March, 2026. The Internal Auditors have also provided
Certificate on Compliance with Internal Financial Controls
(IFCs) for the year ended 31st March, 2026. The Statutory
Auditors of the Company have audited the financial
statements included in this annual report and have issued an
attestation report on our internal control over financial
reporting (as defined in Section 143 of Companies Act 2013).

CHANGES IN CAPITAL STRUCTURE

There were no changes in the Share Capital during the year
under review. The Company has neither issued any shares
with differential voting rights or granted stock options or
issued sweat equity or purchased its own shares nor has the
Company made any Public/ Rights/ Bonus/Buy back of
Equity Shares of the Company. As on 31st March, 2026, the
paid-up Equity Share Capital of the Company stood at Rs.
8,72,63,630 divided into 8,72,63,630 equity shares of face
value of Re. 1/- each.

KEY MANAGERIAL PERSONNEL

As per the provisions of Section 203 of the Companies Act,
2013, the Key Managerial Personnel of the Company as on
31st March, 2026 were as under:

1. Mr. Pavan Khaitan, Vice Chairman & Managing Director

2. Mr. Jagdeep Hira, Whole Time Director (w.e.f. 07th
February, 2026)

3. Mr. Vikram Kumar Khaitan, Chief Financial Officer

4. Mr. Gurinder Singh Makkar, Company Secretary

RELATED PARTY TRANSACTIONS

During the year under review, there were no materially
significant related party transactions made by the Company
with Promoters, Directors, Key Managerial Personnel or other
designated persons, which could have potential conflict with
the interest of the Company at large. All contracts /
arrangements transactions entered into by the Company
during the financial year under review with related parties
were at an arm’s length basis and in the ordinary course of
business. Necessary disclosures as required under the
Accounting Standards have been made in the Financial
Statements.

During the year, the Company has not entered into any
contract/ arrangement/transaction with related parties
which could be considered material in accordance with the
policy of Company on materiality of related party
transactions or which is required to be reported in Form
AOC-2 in terms of section 134(3)(h) read with Section 188 of
the Act and Rule 8(2) of the Companies (Accounts) Rules,
2014, as amended.

Statements giving details of all related party transactions
were placed before the Audit Committee on a quarterly basis.
The Audit Committee as well as all the Directors who were
Independent Directors approved the same. The policy on
Related Party Transactions as approved by the Board can be
accessed on the Company’s website at link
h t t p s : // w w w . k u a n t u m p a p e r s . c o m / w p -
content/uploads/2026/02/Related-Party-Transaction-
Policy.pdf

All the related party transactions pertaining to FY 2025-26
are done at arm’s length and in ordinary course of business.

Members may refer Notes to the Financial Statements, which
sets out related party disclosures pursuant to Ind-AS and
Schedule V of Listing Regulations.

SIGNIFICANT AND MATERIAL ORDERS PASSED
BY THE REGULATORS OR COURTS OR
TRIBUNALS

There are no significant material orders passed by the
Regulators, Courts or Tribunals, which would impact the
going concern status of the Company and its operations in
future.

AUDIT COMMITTEE

As on date, the Audit Committee of the Board consists of four
Directors, with three of them being Independent Directors.
The Chairman of the Audit Committee is Mr. Vivek Bihani,
Independent Director and the Members are Mr. Munishwar
Kumar, Independent Director, Ms. Shireen Sethi, Independent
Director and Mr. Pavan Khaitan, Executive Director. An
Independent Director is the Chairperson of the Committee.

During the year, all the recommendations made by the Audit
Committee were accepted by the Board.

DIVIDEND DISTRIBUTION POLICY

Pursuant to the provision of Regulation 43A of the SEBI
(Listing Obligations and Disclosure Requirements)
Regulations, 2015, the top 1,000 listed entities based on
market capitalisation shall formulate a dividend distribution
policy which shall be disclosed on the website of the listed
entity, and a web-link shall also be provided in annual report.

Though, now the Company is not covered among top 1,000
listed entities as at 31st December, 2023, 31st December,
2024, 31st March, 2025 and 31st March, 2026, yet in
terms of Regulation 3(2) of SEBI (Listing Obligations
and Disclosure Requirements) Regulations 2015,
the duly approved Dividend Distribution Policy is in
place. The Policy can be accessed on the Company's
website at weblink: https://www.kuantumpapers.com/wp-
content/uploads/2024/12/Dividend-Distribution-Policy.pdf.

CHANGE IN THE DIRECTORS AND KEY
MANAGERIAL PERSONNEL

During the Financial Year 2025-26, the Board of Directors,
approved the re-appointment of Shri Jagesh Kumar Khaitan
(DiN: 00026264) as the Chairman for a further period of
three years with effect from 17th July, 2025, and the same
was approved by members by way of Special Resolution, at
the AGM held on 29th day of August, 2025. Mr. Bhavdeep
Sardana (DIN: 03516261), Independent Director, resigned
during the year, on account of personal reasons. Mr.
Munishwar Kumar (DIN: 00434341), Non -Executive Director,
being eligible, was re-designated as an Independent Director
on the Board of Directors w.e.f. 07th February, 2026, for a
term of 5 (Five) consecutive years and the same was
approved by the shareholders of the Company through
Special Resolution passed on 19th March, 2026, through
Postal Ballot process. Further, Mr. Jagdeep Hira (DIN:
07639849) was appointed as Whole Time Director of the
Company w.e.f. 07th February, 2026 for a term of three
years, liable to retire by rotation and the same was approved
by the shareholders of the Company through Special
Resolution passed on 19th March, 2026, through Postal Ballot
process.

Further, in accordance with the provisions of the Companies
Act, 2013 and Articles of Association of the Company, Shri
Jagesh Kumar Khaitan, Director shall retire by rotation at the
forthcoming Annual General Meeting and being eligible, has
offered himself for re-appointment.

Further, the current tenure of Shri Pavan Khaitan, Vice
Chairman & Managing Director is upto 31st March, 2027. The
Board of Directors has approved his re-appointment for a
further period of three years w.e.f. 01st April, 2027, subject to
approval of the Shareholders at ensuing 29th AGM.

DECLARATION BY INDEPENDENT DIRECTORS

The Independent Directors have submitted their disclosures
to the Board that they fulfill all the requirements as stipulated
in Section 149(6) of the Companies Act, 2013 and the
applicable provisions of SEBI (Listing Obligations and
Disclosure Requirements) Regulations, 2015 so as to qualify
themselves to act as Independent Director under the
provisions of the Companies Act, 2013 and SEBI (Listing
Obligations and Disclosure Requirements) Regulations, 2015
and the relevant rules.

Based on the declarations received from the Independent
Directors, the Board of Directors has confirmed that they
meet the criteria of independence as mentioned under
Regulation 16(1)(b) of the SEBI Listing Regulations and that
they are independent of the management.

In terms of Regulation 25(8) of SEBI Listing Regulations,
Independent Directors have confirmed that they are not
aware of any circumstance or situation which exists or may
be reasonably anticipated that could impair or impact their
ability to discharge their duties. In the opinion of the Board,
there has been no change in the circumstances which may
affect their status as Independent Directors of the Company.

Further, the Board is satisfied of the integrity, expertise, and
experience (including proficiency in terms of Section 150(1)
of the Act and applicable rules thereunder) of all Independent
Directors on the Board.

In terms of Section 150 read with Rule 6 of the Companies
(Appointment and Qualification of Directors) Rules, 2014,
Independent Directors of the Company are registered on the

Independent Director Databank maintained by the Indian
Institute of Corporate Affairs (IICA) and hold valid certificate
of registration.

INDUCTIONS & TRAINING OF BOARD
MEMBERS

In terms of Regulation 25(7) of the SEBI (Listing Obligations
and Disclosure Requirements) Regulations, 2015, the
Company familiarized the Independent Directors in the
following areas:

a. Nature of the industry in which the entity operates;

b. Business model of the entity;

c. Roles, rights, responsibilities of independent
directors

Presentations are made to the Board/Committees of the
Board on regular intervals which, inter alia, cover business
strategies & reviews, operations, Industry developments,
management structure, quarterly and year to date financial
results, budgets/business plans, review of Internal Audit and
risk management framework.

Your Company follows a structured familiarisation
programme through various reports and internal policies for
all the Directors with a view to update them on the
Company’s policies on a regular basis. Letter of
Appointment(s) is/are issued to Independent Directors
setting out in detail the terms of appointment, duties,
responsibilities and expected time commitments. Each newly
appointed Director is taken through a formal induction
program including the presentation from the Executive
Directors on the Company’s manufacturing, marketing,
finance and other important aspects. All our Directors
are aware and also updated, whenever required, of
their role, responsibilities and obligations under
the provisions of the Companies Act, 2013 and
Rules made there under an Agreement/ Regulation
25 of the Listing Regulations, 2015. The details of
the Familiarisation Programmes for Independent Directors
are made available on Company’s website at the
web link: https://www.kuantumpapers.com/wp-
content/uploads/2026/04/Familiarisation-Programme.pdf

PERFORMANCE EVALUATION OF THE
DIRECTORS AND MEETING OF INDEPENDENT
DIRECTORS

Nomination, Remuneration and Evaluation Policy has been
framed by the Nomination and Remuneration Committee.
This Committee has laid down the criteria for performance
evaluation of the individual Directors as well as the Board.
The framework of performance evaluation of the Directors
captures the following points:

(a) Performance of the directors and key attributes of the
Directors that justify his/her extension/continuation on
the Board of the Company.

(b) Participation of the Directors in the Board proceedings
and their effectiveness.

(c) Fulfilment of the independence criteria and their
independence from the management as specified in SEBI
(Listing Obligations and Disclosure Requirements)
Regulations, 2015 (including any statutory modification(s)
or enactment thereof for the time being in force) in case
of Independent Directors.

The Board adopted a formal mechanism for evaluating its
performance as well as of its committees and individual
Directors including the Chairman of the Board. The exercise
was carried out through a structured evaluation process
covering various aspects of the Board’s functioning such as
composition of the Board and Committees, experience and
competencies, performance of specific duties and
obligation, governance issues, participation and
effectiveness.

Pursuant to the applicable provisions of the Companies Act,
2013 and the Listing Regulations, the Board has carried out
an Annual Evaluation of its own performance, performance
of the Directors and the working of its Committees on the
evaluation criteria defined by the Nomination and
Remuneration Committee (NRC) for performance evaluation
process of the Board, its Committees and Directors. The
Board’s functioning was evaluated on various aspects,
including inter-alia the structure of the Board, meetings of
the Board, functions of the Board, degree of fulfilment of key
responsibilities, establishment and delineation of
responsibilities to various Committees, effectiveness of
Board processes, information and functioning. The
Committees of the Board were assessed on the degree of
fulfilment of key responsibilities, adequacy of Committee
composition and effectiveness of Meetings. The Directors
were evaluated on aspects such as attendance, contribution
at Board/ Committee Meetings and guidance/support to the
Management outside Board/ Committee Meetings.

The criteria for evaluation of Board include whether Board
meetings were held in time, all items which were required as
per law or SEBI (Listing Obligations and Disclosure
Requirements) Regulations, 2015 to be placed before the
Board, have been placed, the same have been discussed and
appropriate decisions were taken, adherence to legally
prescribed composition and procedures, timely induction of
additional/ women Directors and replacement of Board
members/Committee members, whenever required, whether
the Board regularly reviews the investors grievance
redressal mechanism and related issues, Board facilitates the
independent directors to perform their role effectively etc.
The criteria for evaluation of committee include taking up
roles and functions as per its terms of reference,
independence of the committee, policies which are required
to frame and properly monitor its implementation, whether
the committee has sought necessary clarifications,
information and explanations from management, internal and
external auditors etc. Based on such criteria, the evaluation
was done in a structured manner through peer consultation
& discussion.

The performance assessment of Non-Independent
Directors, Board as a whole and the Chairman were
evaluated in a separate meeting of Independent Directors.
The same was also discussed in the meetings of NRC and the
Board.

Performance evaluation of Independent Directors was done
by the entire Board, excluding the Independent Director
being evaluated.

During the year under review, a meeting of Independent
Directors was held on 07th February, 2026. The performance

of the Non-Independent Directors and the Board as a whole
vis- a-vis the performance of the Chairman of the Company
was reviewed by the Independent Directors.

DISCLOSURES ON BOARD EVALUATION:

i. Observations of Board Evaluation carried out for the
year:

In conformity with the evaluation policy and laid
down parameters, the overall contribution of each
Director was assessed as satisfactory and
appreciable. The suggestions, participation,
involvement and constant efforts of each director in
the light of the business operations and overall
growth and development of the Company was really
significant.

ii. Previous year’s observations and actions taken:

There were no observations of the Board with regard
to the previous year. However, it has been the
endeavor of the Board of Directors of the Company
to attain the highest level of transparency,
accountability and integrity as well as utmost
applicable legal and ethical standards in the
functioning of the Company with a view to creating
value that can be sustained continuously for the
benefit of its stakeholders.

iii. Proposed actions envisaged:

The Company proposes to hold more trainings,
presentations and interactions enabling the
Directors to uphold highest standards of integrity &
probity and strict adherence of the Companies Act,
SEBI (Listing Obligations and Disclosure
Requirements) Regulations, and other rules and
regulations besides Company’s Code of Conduct as
also to strive for constructive, effective and value-
added deliberations at the meetings as also to
consistently strive to implement best corporate
governance practices reflecting its strong value
system and ethical business conduct.

SEPARATE MEETING OF INDEPENDENT
DIRECTORS

In compliance with Section 149(8) of the Act read along with
Schedule IV of the Act and SEBI (Listing Obligations and
Disclosure Requirements) Regulations, 2015, the
Independent Directors separately met on 07th February,
2026.

The Independent Directors at their separate meeting,
reviewed the performance of the Board, Chairman of the
Board and of Non-Independent Directors, as required under
the Act and the Listing Agreement. The Independent
Directors at their separate meeting also assessed the quality,
quantity and timelines of flow of information between your
Company Management and the Board of Directors of your
Company.

All the Independent Directors were present at the Meeting.

NOMINATION, REMUNERATION AND
EVALUATION POLICY

The Board has on the recommendation of the Nomination and
Remuneration Committee, approved a policy for selection,
appointment, remuneration and evaluation of Directors, Key
Managerial Personnel and Senior Management. Details of the
Nomination and Remuneration Committee are given in the
Corporate Governance Report. The Nomination,
Remuneration and Evaluation Policy as approved by the
Board is placed on the Company’s website i.e.
www.kuantumpapers.com.

DISCLOSURE OF COMPLAINTS OF SEXUAL
HARASSMENT AND CHILD LABOUR

The Company’s Policy on Prevention of Sexual Harassment at
workplace is in line with the requirements of the Sexual
Harassment of Women at Workplace (Prevention, Prohibition
and Redressal) Act, 2013 (Prevention of Sexual Harassment of
Women at Workplace Act) and Rules framed there under.

Internal Complaints Committees have also been set up to
redress complaints received regarding sexual harassment.
The Company is committed to providing a safe and conducive
work environment to all of its employees and associates. The
following is a summary of sexual harassment complaints
received and disposed off during the year 2025-26:

STATEMENT AS TO INTERNAL COMPLAINTS
COMMITTEE

In terms of Companies (Accounts) Amendment Rules, 2018, it
is hereby stated that the Company has complied with
provisions relating to the constitution of Internal Complaints
Committee under the Sexual Harassment of Women at
Workplace (Prevention, Prohibition and Redressal) Act, 2013.

STATEMENT ON COMPLIANCE WITH
APPLICABLE SECRETARIAL STANDARDS

During the year under review, the Company has complied
with the applicable provisions of the Secretarial Standards
issued by the Institute of Company Secretaries of India.

NUMBER OF MEETINGS OF THE BOARD AND
AUDIT COMMITTEE

The Board meets at regular intervals to discuss and decide on
Company’s business operations, policies and strategy apart
from other Board businesses.

During the year, 4 (Four) Board Meetings and 4 (Four) Audit
Committee Meetings were convened and held. Details of the
number of meetings of Board of Directors and committees
thereof and the attendance of the Directors in such meetings
are provided under the Corporate Governance Report that
forms part of the Annual Report.

The intervening gap between the meetings was within the
period prescribed under the Companies Act, 2013 and the
SEBI (Listing Obligations and Disclosure Requirements)
Regulations, 2015 (“Listing Regulations”), as amended from
time to time. Pursuant to the circular relating to the
“enforcement of SEBI Order regarding appointment of
directors by listed companies” dated June 20, 2018, none of
the director of the Company, is debarred from holding the

office of director pursuant to any SEBI order.

MANAGEMENT DISCUSSION AND ANALYSIS
REPORT

In terms of Regulation 34 of the SEBI (Listing Obligations and
Disclosure Requirements) Regulations, 2015 (‘Listing
Regulations’), Management Discussions and Analysis report
(“MD&A Report”) providing a detailed overview of your
Company’s performance, industry trends, business and risks
involved is provided separately and forms part of Annual
Report.

COMMITTEES OF THE BOARD

The Committees of the Board focus on certain specific areas
and make informed decisions in line with the delegated
authority. The following are the Committees statutorily
constituted by the Board and function according to their
respective roles and defined scope:

• Audit Committee

• Nomination & Remuneration Committee

• Stakeholders Relationship Committee

• Corporate Social Responsibility Committee

• Risk Management Committee

Details of composition, terms of reference and number of
meetings held for respective Committees are given in the
Report on Corporate Governance which forms part of the
Annual Report.

Apart from above statutory committees, the Board of
Directors has also a non-statutory committee viz. Finance
Committee.

PREVENTION OF INSIDER TRADING

The Company has adopted a Code of Conduct for Prevention
of Insider Trading, in accordance with the requirements of
Securities and Exchange Board of India (Prohibition of Insider
T rading) Regulations, 2015, as amended from time to time. The
Company Secretary is the Compliance Officer for monitoring
adherence to the said Regulations. The Code is displayed on
the Company’s website at www.kuantumpapers.com.

REPORTING OF FRAUDS

There was no instance of fraud during the year under review,
which required the Statutory Auditors to report to the Audit
Committee and / or to the Board as required under Section
143(12) of the Act and the rules made thereunder.

DEMATERIALISATION OF SHARES

As on March 31, 2026, 99.41% Equity Shares were in
dematerialised form with National Securities Depository
Limited and Central Depository Services (India) Limited and
rest 0.59% were in physical form.

INSURANCE

The properties/assets of your Company are adequately
insured.

INDIAN ACCOUNTING STANDARDS

The financial statements of your Company are prepared in
accordance with the Indian Accounting Standards (‘Ind- AS’)
pursuant to the Ministry of Corporate Affairs notification
dated February 16, 2015 notifying the Companies (Indian
Accounting Standards) Rules, 2015.

STATUTORY AUDITORS & AUDITOR’S REPORT

M/s O P Bagla & Co. LLP, Chartered Accountants (Firm
Registration No. 000018N/N500091), Statutory Auditors of
the Company, were re-appointed by the Shareholders at the
28th Annual General Meeting for a second term of five
consecutive years, to hold office from the conclusion of the
28th Annual General Meeting until the conclusion of the 33rd
Annual General Meeting.

As required under Section 139 of the Companies Act, 2013,
the Company has received a certificate from them to the
effect that their existing appointment is in accordance with
the conditions prescribed under the Companies Act, 2013 and
rules made thereunder. The Auditors Report for the financial
year 2025-26 does not contain any qualification, reservation
or adverse remark. The Notes on Accounts referred to in the
Annexure to the Statutory Auditor’s Report are self¬
explanatory and do not call for any comments.

The details relating to fees paid to the Statutory Auditors are
given in the Financial Statements and Corporate Governance
Report section in the Annual Report.

APPLICABILITY AND MAINTENANCE OF COST
RECORDS

In terms of Companies (Accounts) Amendment Rules, 2018, a
Disclosure is hereby made that maintenance of cost records
as specified by the Central Government under subsection (1)
of section 148 of the Companies Act, 2013, is required by the

Company and accordingly such accounts and records are
made and maintained.

COST AUDITORS

M/s R.J. Goel & Co., Delhi were appointed as Cost Auditors for
conducting the cost audit of the Company for the year ended
31st March 2026. For the year 2025-26, the Cost Audit report
shall be duly filed within prescribed time. The Company’s Cost
Audit Report for the year ended 31st March 2025 was duly
filed during the financial year 2025- 26 within stipulated
period. The Board of Directors has on the recommendation of
Audit Committee, appointed the said firm as Cost Auditors of
the Company for the financial year 2026-27.

SECRETARIAL AUDITORS & REPORTS

Pursuant to Section 204 of the Companies Act, 2013 further
read with amended Regulation 24A of SEBI (Listing
Obligations and Disclosure Requirements) Regulations, 2015
and pursuant to the approval of shareholders of the Company
obtained at 28th AGM held on 29th August, 2025, M/s S.K.
Sikka & Associates, Company Secretaries were appointed as
the Secretarial Auditors to conduct Secretarial Audit of the
Company for a period of five consecutive years w.e.f. the
conclusion of 28th AGM until the conclusion of 33rd AGM to
be held in year 2030.

Accordingly, M/s S.K. Sikka & Associates, Company
Secretaries have conducted Secretarial Audit of the
Company, and they have submitted the Secretarial Audit
Report for the year ending 31st March, 2026 which is annexed
to this Board’s Report as Annexure-4.

As per amended SEBI (Listing Obligations and Disclosure
Requirements) Regulations, 2015 in addition to the above-
mentioned Secretarial Audit Report, listed company is also
required to obtain an Annual Secretarial Compliance Report
from a practicing Company Secretary w.r.t. the compliances
of all applicable SEBI Regulations, amendments, circulars or
guidelines etc. by the Company. Accordingly, the same has
been obtained from M/s S.K. Sikka & Associates, Company
Secretaries and filed with the concerned Stock Exchanges.
The said Secretarial Audit Report or Report on annual
secretarial compliances does not contain any qualification,
observation, reservation or adverse remark made by the
Secretarial Auditor.

Further pursuant to SEBI (Listing Obligations and Disclosure
Requirements) Regulations, 2015, the Company is required to
obtain a certificate from Practicing Company Secretary that
none of the directors on the Board of the company have been
debarred or disqualified from being appointed or continuing
as directors of companies by the Board/Ministry of Corporate
Affairs or any such statutory authority. The said Certificate
has been obtained from the M/s S.K. Sikka & Associates,
Company Secretaries, which is given at Annexure-7 and
forms part of Board’s Report.

INTERNAL AUDITOR

Internal Audit for the year ended 31st March, 2026 was done
by M/s A. Gandhi & Associates, Chartered Accountants and
Internal Audit Report for every quarter was placed before the
Audit Committee. The internal financial controls were
adequate and operating effectively in the Company.

DIRECTORS AND OFFICERS INSURANCE (D &O)

As per the requirements of Regulation 25 (10) further read
with Regulation 3(2) of Listing Regulations, applicable to the
Company, the Company has taken Directors and Officers
Insurance Policy (D & O) for all of its Directors.

UNCLAIMED SUSPENSE ACCOUNT

Details pertaining to the shares in ‘Unclaimed Suspense
Account’ in Compliance with the terms of SEBI (Listing
Obligations and Disclosures Requirements) Regulations, 2015
are given in the Report on Corporate Governance annexed
with this report.

RESOLUTIONS AND MATTERS APPROVED
THROUGH POSTAL BALLOT FINANCIAL YEAR

During the year under review, two Special Resolutions were
passed through Postal Ballot process on 19th March, 2026,
approving re-designation of Shri Munishwar Kumar
(DIN:00434341), as an Independent Director not liable to
retire by rotation, for a term of 5 (Five) consecutive years
commencing from 07th February, 2026 to 06th February,
2031 and also approving appointment of Shri Jagdeep Hira
(DIN: 07639849) as a Director and Whole Time Director of the
Company for a term of 3 (Three) consecutive years with
effect from 07th February 2026, liable to retire by rotation.

DECLARATION REGARDING CODE OF

CONDUCT

Directors, Key Managerial Personnel and Senior Management
of the Company have confirmed compliance with the Code of
Conduct applicable to the Directors and employees of the
Company and the declaration in this regard made by CEO/
Vice Chairman & Managing Director of the Company is
annexed at Annexure-9 and forms part of this Annual Report.
The said code is available at the Company’s website i.e.
www.kuantumpapers.com.

DISCLOSURE ABOUT THE RECEIPT OF

COMMISSION

Details of Remuneration including Commission received from
the Company by Managing/Whole Time Directors are given in
Corporate Governance Section which forms part of Annual
Report. In terms of Section 197(14) of the Act and rules made
there under, during the year under review, no director has
received any commission from the holding company. The
Company does not have any subsidiary and hence the same
is not applicable to the Company.

CORPORATE GOVERNANCE

A Report on Corporate Governance along with a Certificate
from the Practicing Company Secretary regarding
compliance of the conditions of Corporate Governance
pursuant to SEBI (Listing Obligations and Disclosure
Requirements) Regulations, 2015 are annexed at Annexure-5
and Annexure-6 respectively and form part of the Annual
Report.

TRANSFER TO INVESTOR EDUCATION AND

PROTECTION FUND

As required under the provisions of the Section 124 & 125 and
other applicable provisions of the Act, dividends that remain
unpaid / Unclaimed for a period of consecutive 7 years, are
required to be transferred to the account administered by the
Central Government viz. Investor Education and Protection
Fund (“IEPF”). Further, according to the said Rules, the shares
on which Dividend has not been encashed or claimed by the
Members for 7 consecutive years or more shall also be
transferred to the demat account of the IEPF Authority. In
terms of the provisions of Investor Education and Protection
Fund (Accounting, Audit, Transfer and Refund) Rules, 2016,
the above stated unpaid dividends and shares requiring
transfer to Investor Education and Protection Fund during the
year 2025-26, have been duly transferred.

INDUSTRIAL RELATIONS

The industrial relations remained very cordial and responsive
during the year under review.

EXTRACT OF THE ANNUAL RETURN

Pursuant to the provisions of Section 134(3)(a) and Section
92(3) of the Act read with Rule 12 of the Companies
(Management and Administration) Rules, 2014, the extract of
the Annual Return of the Company for the Financial Year
ended 31st March, 2026 is uploaded on the website of the
Company and can be accessed at www.kuantumpapers.com
under the weblink i.e. https://www.kuantumpapers.com/wp-
content/uploads/2026/05/MGT-7-2025-2026.pdf

TRANSFER TO RESERVES

The Company does not propose to transfer any amount to
general reserves.

CAUTIONARY STATEMENT

Certain Statements in this Annual Report may constitute
“forward-looking statements”. These forward-looking
statements are subject to a number of risks, uncertainties and
other factors which could cause actual results to differ
materially from those suggested by forward looking
statements.

CONSERVATION OF ENERGY, TECHNOLOGY
ABSORPTION AND FOREIGN EXCHANGE
EARNINGS & OUTGO

The information relating to conservation of energy,
technology absorption and foreign exchange earnings &
outgo as required under Section 134(3)(m) of the Companies
Act, 2013 read with Rule 8(3) of the Companies (Accounts)
Rules, 2014 is given in Annexure-2 which forms part of this
Report.

PERSONNEL

Relationships with the employees remained cordial
throughout the year in the Company. The Directors express
their appreciation for the contribution made by the
employees at all levels to the operations and in establishing
operational efficiencies of the Company during the year
under review.

PARTICULARS OF EMPLOYEES

The information required under section 197(12) of the
Companies Act, 2013 read with Rule 5 of the Companies
(Appointment & Remuneration of Managerial Personnel)
Rules, 2014 is given in the statement annexed herewith as
Annexure-3 and forms part of this Report. The information
required pursuant to the provisions of Rule 5(2) & (3) of the
Companies (Appointment & Remuneration of Managerial
Personnel) Rules, 2014 requiring particulars of the employees
in receipt of remuneration in excess of Rs. 102 Lakhs per
annum if employed throughout the year and Rs. 8.50 Lakhs
per month if employed for part of the year, is given in the
statement annexed herewith as Annexure-3. As per the
provisions of Section 136 of the Act, the reports and Financial
Statements are being sent to shareholders of the Company
and other stakeholders entitled thereto. Any shareholder
interested in obtaining such details may write to the Company
Secretary of the Company.

LISTING OF SECURITIES

The securities (Equity Shares) of the Company are listed at
BSE Limited (BSE) and National Stock Exchange of India
Limited (NSE). The Company has paid the listing fees to the
BSE and NSE up to and including the financial year 2026-27.

PARTICULARS OF LOANS, GUARANTEES OR
INVESTMENTS UNDER SECTION 186 OF THE
COMPANIES ACT, 2013

There had been no loans, guarantees and investments
covered under Section 186 of the Companies Act, 2013
requiring particulars. Details of loans from Banks/FIs/
Directors, are provided in Financial Statements and Notes
thereto.

DIRECTORS’ RESPONSIBILITY STATEMENT

Based on the framework of internal financial controls
established and maintained by the Company, work performed
by the Internal, Statutory, Cost and Secretarial Auditors
including financial reporting by the Statutory Auditors and
the reviews performed by Management and the relevant
Board Committees, including Audit Committee, the Board is of
the opinion that the Company’s internal financial controls
were adequate and effective during Financial Year 2025-26.

Accordingly, pursuant to Section 134(3)(c) read with Section
134(5) of the Companies Act, 2013, the Board of Directors, to
the best of their knowledge and ability state that:

(i) in the preparation of the annual accounts for the year
ended 31st March 2026, the applicable accounting
standards read with requirements set out under Schedule
III to the Act, have been followed and there are no material
departures;

(ii) such accounting policies have been selected and applied
consistently and judgments and estimates have been
made that are reasonable and prudent so as to give a true
and fair view of the state of affairs of the company as of
31st March 2026 and of the profit of the company for the
year ended on that date.

(iii) proper and sufficient care has been taken for the
maintenance of adequate accounting records in
accordance with the provisions of the Companies Act,

2013 for safeguarding the assets of the Company and for
preventing and detecting fraud and other irregularities;

(iv) the annual accounts have been prepared on a
going concern basis;

(v) the Directors have laid down internal financial controls to
be followed by the Company and that such internal
financial controls are adequate and are operating
effectively; and

(vi) the Directors have devised proper systems to ensure
compliance with the provisions of all applicable laws and
that such systems are adequate and operating
effectively.

BUSI NESS RESPONSI BI LI TY AN D
SUSTAINABILITY REPORT (BRSR)

As at 31st March, 2026, the Company is not covered amongst
top 1000 listed entities based on market capitalization, yet in
terms of Regulation 34(2)(f) further read with Regulation 3(2)
of the Listing Regulations, Business Responsibility and
Sustainability Report (BRSR) of the Company for FY 2025-26
is annexed at Annexure-10 of Board’s Report and forms part
of Annual Report of the Company.

INSOLVENCY & BANKRUPTCY CODE, 2016

There were no proceedings initiated/pending against your
Company under the Insolvency and Bankruptcy Code, 2016,
which impacts the business of the Company.

DIFFERENCE IN AMOUNTS OF VALUATIONS, IF
ANY

There were no instances where your Company required the
valuation for one time settlement or while taking any loan
from the Banks or Financial Institutions. The Company has not
made any onetime settlement during the Financial Year 2025¬
26 with Banks or Financial Institution.

ACKNOWLEDGMENT

Your Directors convey sincere thanks to the various agencies
of the Central and State Governments, Banks and other
concerned agencies for all the assistance and cooperation
extended to the Company for their continued support. The
Directors also deeply appreciate and acknowledge the trust
and confidence of the vendors, suppliers, dealers, customers,
shareholders and investors reposed in the Company. Your
Directors also place on record their appreciation for the
dedicated services rendered by the workers, staff and
officers of the Company.

For and on behalf of Board of Directors of
Kuantum Papers Limited

(CIN: L21012PB1997PLC035243)

Jagesh Kumar Khaitan

Dated: 26th May, 2026 _Chairman

^{Place: Chandigarh} DIN:00026264