To,
The Members
NIKITA PAPERS LIMITED
CIN: L74899DL1989PLC129066 A-10, Floor 1st,
Land Mark Near Deepali Chowk, Saraswati Vihar,
Pitampura, North West, New Delhi, Delhi - 110 034
Your Directors are pleased to present the 36th Annual Report covering the operational and financial performance of your Company along with the Audited Financial Statements for the financial year ended March 31, 2025.
FINANCIAL HIGHLIGHTS:
(Amount in Lacs Rupees)
| Particulars | STANDALONE AUDITED FINANCIALS | |
| Year Ended March 31, 2025 | Year Ended March 31, 2024 | |
| Revenue from Operations | 36,442.43 | 33,860.08 |
| Other Income | 1,476.18 | 818.20 |
| Total Income | 37,918.62 | 34,678.28 |
| Total Expenses | 34,653.92 | 32,258.48 |
| Profit/ (Loss) Before Exceptional And Extraordinary Items And Tax | 3,264.70 | 2,419.80 |
| Profit Before Extraordinary Items And Tax | 3,264.70 | 2,867.99 |
| Profit/ (Loss) Before Tax | 3,264.70 | 2,867.99 |
| Profit/ Loss After Tax | 2,301.88 | 2,072.37 |
| Profit/ (Loss) For The Period From Continuing Operations | 2,301.88 | 2,072.37 |
| Earning Per Share (In Rs.) | ||
| (Basic & Diluted) | 12.67 | 12.25 |
Your Company has prepared the Financial Statements for the financial year ended March 31, 2025, in terms of Sections 129, 133 and other applicable provisions, if any, of the Companies Act, 2013 (as amended) (the "Act") and Schedule III thereto read with the Rules framed thereunder.
During the financial year ended March 31, 2025, your Company achieved a turnover of Rs. 36,442.43 Lacs, reflecting a growth of 7.63% over the previous years turnover of Rs. 33,860.08 Lacs. In the previous financial year (2023-24), there was an exceptional item amounting to Rs. 448.20 Lacs. Excluding this, the Company has demonstrated consistent performance.
The Company reported a Net Profit of Rs. 2,301.88 Lacs for the year ended March 31, 2025, compared to a Net Profit of Rs. 2,072.37 Lacs in the previous year, indicating a steady year-on-year growth.
OPERATIONAL HIGHLIGHTS & PERFORMANCE :
During the reporting period, Nikita Papers Limited demonstrated robust operational performance and continued progress in its commitment to sustainable and circular manufacturing practices. The company achieved a notable capacity utilization rate of approximately 82%, reflecting efficient plant operations, proactive maintenance, and enhanced process stability.
Production volumes remained steady, with a focused approach on maximizing output without compromising on product quality. This years operations were strongly influenced by the growing demand for recycled and ecofriendly paper products, which reinforced the companys position as a responsible supplier to the packaging, publishing, and FMCG sectors.
From a financial perspective, the company posted healthy year-over-year revenue growth, driven by its diversified product offerings and increasing customer preference for sustainable alternatives. Enhanced cost management and operational efficiencies resulted in improved EBITDA margins, while strong working capital discipline contributed to improved liquidity. During the year, the company also faced challenges arising from USD volatility, which has a direct impact on the cost of imported raw materials and export realizations.
To mitigate this risk, the company implemented a prudent forex hedging strategy, ensuring better predictability of cash flows and protecting operating margins against adverse currency movements.
The company expanded its product portfolio to include value-added, recycled Kraft paper grades, specifically tailored for high-growth segments such as corrugated packaging, secondary packaging, carry bag paper, shopping bag paper, and speciality Kraft paper.
These segments are witnessing increasing demand driven by the global shift toward sustainable alternatives to plastic. Strategic efforts were made to broaden the domestic customer base and reduce concentration risk by tapping into new regions and niche industry verticals, enabling the company to diversify revenue streams and build a more resilient business foundation.
Sustainability remained central to the companys operations. Significant progress was made in increasing the use of recycled raw materials, reducing dependency on virgin pulp, and advancing closed-loop systems. Major investments were directed toward energy-efficient production, biomass and RDF fuel usage, and advanced wastewater treatment technologies, all of which align with the companys commitment to Environmental, Social, and Governance (ESG) principles.
A key milestone during the year was the successful completion of a capital expenditure project focused on the modification of existing boilers to utilize Refuse-Derived Fuel (RDF) — a significant step toward adopting green energy solutions. By converting waste materials into usable fuel, the company is not only reducing its reliance on conventional fossil fuels but also contributing to cleaning up societal waste and promoting a circular economy. This initiative aligns with the companys broader sustainability vision of supporting a cleaner, greener Earth.
Moreover, this transition enhances long-term energy security and cost-efficiency, while positioning the company to meet anticipated growth in both domestic and international markets amid the global shift toward eco-friendly and plastic-free packaging solutions.
Digital transformation was another focus area, with the rollout of supply chain digitization initiatives that enhanced real-time visibility, improved logistics efficiency, and supported data-driven decision-making. In parallel, the company undertook comprehensive efforts to further strengthen its corporate governance, focusing on transparency, compliance, and risk management across all operational levels.
Collectively, these achievements underscore Nikita Papers Limiteds commitment to recycling-led innovation, operational excellence, and long-term value creation for all stakeholders — while contributing meaningfully to a greener, more circular economy.
STATE OF COMPANYS AFFAIRS AND FUTURE OUTLOOK:
Nikita Papers Limited continues to maintain a strong, resilient operational foundation in a rapidly evolving and sustainability-focused market landscape. Despite global and domestic challenges, the company has navigated industry shifts with confidence by leveraging its core strengths — efficient recycled paper manufacturing, quality- driven processes, and a deeply customer-centric approach.
During the reporting year, the company sustained consistent performance across key production and financial metrics. This was driven by operational discipline, cost optimization, and a focused strategy around recycled raw material sourcing, allowing it to maintain both competitiveness and environmental responsibility. The growing demand for sustainable, plastic-free alternatives in packaging and publishing sectors has created a supportive backdrop for growth — and Nikita Papers has capitalized on this through continuous product innovation and market diversification.
On the environmental front, the company has made significant strides in aligning its operations with circular economy principles. The increased use of recycled fibers, adoption of zero-liquid discharge systems, and transition toward cleaner energy sources such as biomass and RDF (Refuse-Derived Fuel) underscore its long-term commitment to sustainability. These initiatives not only support environmental goals but also enhance brand equity and position the company as a responsible industry leader.
In line with this commitment, the company has also taken a major step forward by initiating a Waste-to-Energy project, with the erection phase of the project currently in full swing. This project is a key part of the companys strategy to convert industrial and municipal waste into usable green energy, further reinforcing its dedication to reducing environmental impact, cleaning societal waste, and contributing to a cleaner, greener planet.
Strategically, investments in capacity expansion, automation, and modernization of plant infrastructure have strengthened the companys ability to scale efficiently and meet the rising demand for high-performance recycled Kraft paper. These efforts have also contributed to improvements in quality, yield, and energy efficiency.
In particular, the packaging, corrugation, carry bag, and FMCG segments have emerged as key growth drivers. With the rising demand for sustainable and cost-effective packaging solutions, the companys recycled Kraft paper is increasingly being utilized in corrugated boxes, industrial packaging, and eco-friendly carry bags. The shift away from single-use plastic by both regulatory mandates and consumer preference has opened new opportunities, especially within the FMCG sector, where environmentally conscious packaging is gaining traction. Nikita Papers is strategically positioned to cater to this demand with tailored grades and specifications suited for these applications.
Looking ahead, Nikita Papers Limited remains optimistic about its future growth trajectory. With increasing regulatory pressure on plastic use and heightened environmental awareness among consumers and businesses, the paper and packaging industry is entering a new phase of opportunity. The company plans to expand its product mix to include more value-added recycled paper grades, enter new domestic and international markets, and enhance digital capabilities for greater operational responsiveness.
Export potential is being actively explored, alongside strategic partnerships that will help diversify revenue streams and build a more resilient business model. The companys roadmap for the future is anchored in sustainability, innovation, and stakeholder value creation — ensuring that growth is both profitable and responsible.
In summary, with solid fundamentals, a clear strategic vision, and a deep-rooted commitment to environmental stewardship, Nikita Papers Limited is well-positioned to lead the way in the green transformation of the paper industry — particularly in driving sustainable solutions across the packaging, corrugation, carry bag, and FMCG segments, where demand continues to accelerate.
MAINTAINING MOMENTUM IN A CHALLENGING MARKET:
In the face of a complex macroeconomic environment and shifting industry dynamics, Nikita Papers Limited has successfully maintained its growth momentum through strategic adaptability, operational discipline, and an unwavering focus on sustainable innovation and customer value.
The recycled paper industry continues to navigate challenges such as volatile raw material prices, rising environmental regulations, and evolving customer preferences for eco-conscious packaging solutions.
Amid these headwinds, the company remained resilient by strengthening its recycling-centric supply chain, implementing robust cost control measures, and driving efficiency across production lines.
A Core strength has been the companys ability to rapidly respond to market changes while maintaining the quality, consistency, and reliability of its offerings.
These efforts have helped preserve customer trust and soli dify the companys reputation as a dependable partner in sustainable packaging.
T o address market pressures and capitalize on emerging opportunities, Nikita Papers accelerated its focus on value- added, recycled Kraft paper products, particularly those serving high-demand sectors such as FMCG, food & beverage, and corrugated packaging. Strategic investments in automation, energy-efficient systems, and process upgrades have enhanced productivity and safeguarded operational margins even in the face of input cost fluctuations.
The companys lean, customer-centric operating model, combined with its green manufacturing ethos, has enabled it to mitigate short-term volatility while staying committed to its long-term vision of circular growth. By continuing to align its product strategy with sustainability imperatives and regulatory trends, Nikita Papers Limited is well- positioned to thrive in an increasingly eco-conscious marketplace.
With clarity of purpose, disciplined execution, and an innovation-driven mindset, the company remains confident in its ability to sustain momentum and deliver consistent value to stakeholders—despite uncertainty in the external environment.
FINANCIAL PERFORMANCE HIGHLIGHTS:
• Standalone Basis:
(Amount in Lacs Rupees)
| Sl. No. Particulars | Current Year 2024-2025 | Previous Year 2023-2024 | Increase/(Decrease) |
| 1. T otal Income | 37,918.62 | 34,678.28 | 9.34% |
| 2. T otal Expenditure | 34,653.92 | 32,258.48 | 7.43% |
| 3. Net Profit | 2,301.88 | 2,072.37 | 11.07% |
Our ability to deliver strong financial performance—even while increasing investments in future-ready, sustainable capabilities—demonstrates the resilience of our recycling-led business model and the effectiveness of our long-term strategy. This outcome is a result of disciplined execution, agility in navigating market volatility, and a steadfast commitment to circularity and responsible growth.
As we look to the future, we remain confident in our growth trajectory and fully committed to enhancing stakeholder value through continuous improvement in operational efficiency, product innovation, and environmentally conscious practices that define our purpose and drive our progress.
STRATEGIC OUTLOOK:
Building on the strength and resilience demonstrated this year, Nikita Papers Limited is well-positioned to navigate dynamic market conditions with agility, purpose, and a clear focus on sustainable growth. Our strategy remains anchored in recycling-driven innovation, process efficiency, and a deep commitment to environmental responsibility.
As a forward-thinking player in the Green Paper and Circular Economy space, the company continues to invest in next-generation technologies, infrastructure upgrades, and value-added recycled paper grades to meet the evolving needs of packaging, publishing, and FMCG sectors.
These efforts are guided by our long-standing commitment to reducing environmental impact, promoting plastic alternatives, and supporting responsible consumption.
With a strong foundation in operational excellence and ethical business practices, we are poised for sustained growth across domestic and global markets. Our strategic roadmap includes:
• Continued capacity expansion with eco-efficient technologies.
• Strengthening of our recycling ecosystem and supply chain.
• Exploration of export opportunities in eco-conscious markets.
• Advancement of digitalization and data-driven decision-making.
• Deepening our focus on ESG commitments and compliance excellence.
As we move forward, creating long-term stakeholder value remains central to our vision—ensuring that growth is not only profitable but also purpose-driven and planet-positive.
MANUFACTURING AND SOURCING:
At Nikita Papers Limited, our manufacturing philosophy is deeply rooted in sustainability, resource efficiency, and technological advancement. We continue to strengthen our manufacturing capabilities to meet the rising demand for high-quality recycled Kraft paper, while minimizing environmental impact across every stage of production.
Our state-of-the-art facility in Shamli, Uttar Pradesh is equipped with modern, energy-efficient machinery that supports high-throughput production with reduced emissions and lower water and energy consumption. Regular upgrades, preventive maintenance, and a robust focus on continuous improvement ensure consistent product quality, operational reliability, and waste reduction.
Key manufacturing practices include:
• Closed-loop water usage systems to support Zero Liquid Discharge (ZLD).
• Clean energy integration with growing reliance on biomass and Refuse-Derived Fuel (RDF).
• Automated control systems to monitor efficiency and ensure process precision.
On the sourcing front, our approach is guided by the principles of responsible procurement and circular economy thinking. A substantial portion of our raw materials is sourced from post-consumer waste paper, reflecting our core commitment to recycling and reducing dependence on virgin resources.
We work closely with a diversified network of suppliers, both domestic and international, to ensure:
• Supply chain resilience, even amid market volatility.
• Cost competitiveness through strategic sourcing agreements.
• Sustainability alignment, with partners who share our environmental goals.
By fostering long-term partnerships with vendors and waste aggregators, we ensure the consistent availability of high-quality recycled inputs, while continuously exploring new and innovative sourcing methods that reinforce our green mission.
This integrated, future-focused approach to manufacturing and sourcing supports our broader goals of environmental stewardship, cost efficiency, and customer satisfaction, positioning us as a leader in sustainable paper production.
STOCK EXCHANGE LISTING:
During the fiscal year, Nikita Papers Limited reached a key milestone in its corporate evolution by successfully filing its Draft Red Herring Prospectus (DRHP) with the EMERGE platform of the National Stock Exchange
(NSE). We are proud to report that, as of the date of this Board Report, the company has been officially listed on the EMERGE platform — a landmark achievement that underscores our commitment to transparency, governance, and sustainable long-term growth.
This strategic move marks a new chapter in our journey, providing enhanced market visibility, investor confidence, and crucially, access to capital that will support our mission of advancing recycling-based manufacturing and expanding our green product offerings.
The successful listing strengthens our financial foundation and positions us to:
• Invest in advanced recycling technologies.
• Expand manufacturing capabilities with eco-efficient upgrades.
• Diversify into new sustainable packaging segments.
• Attract and retain top talent across operational and technical functions.
By leveraging public market access, Nikita Papers Limited is now better equipped to deliver scalable, environmentally responsible solutions that meet the growing demand for plastic alternatives and recycled Kraft paper products — creating long-term value for shareholders, customers, and the planet.
The Companys equity shares were successfully listed on the National Stock Exchange (NSE) EMERGE Platform, also known as the SME Platform, on June 3, 2025. This milestone marks a significant chapter in Nikita Papers Limiteds growth journey, underscoring our unwavering commitment to transparency, robust corporate governance, and long-term value creation. The listing enhances our corporate credibility and market presence, providing greater visibility within the capital markets. It also enables the Company to access a wider investor base, thereby supporting our strategic expansion initiatives with strengthenedfinancial backing and renewed confidence.
BUSINESS OUTLOOK; FISCAL 2024-2025:
As we reflect on the progress made and look ahead to Fiscal 2024-25, Nikita Papers Limited remains confident in its growth trajectory, driven by a steadfast commitment to recycling, sustainability, and green innovation. The paper industry continues to experience transformative shifts, fuelled by rising environmental consciousness and escalating demand for eco-friendly alternatives, particularly in packaging and FMCG sectors.
In the coming year, the Company plans to further enhance its production capacity with a strong focus on utilizing recycled raw materials, thereby reinforcing its leadership in sustainable manufacturing. Investments in cutting-edge, energy-efficient technologies and green infrastructure will support improved operational efficiency while significantly reducing environmental impact.
Strategic initiatives will include expanding our value-added recycled paper product portfolio to cater to the evolving preferences of environmentally aware consumers and comply with stringent regulatory standards.
The Company will also continue to broaden its presence in both domestic and select international markets, promoting the circular economy and green innovation.
Through a prudent financial strategy and ongoing investments in research and development, digital transformation, and quality enhancement, Nikita Papers Limited aims to deliver superior products that align with global sustainability goals. Our commitment to responsible business practices, operational excellence, and environmental stewardship will continue to create long-term value for our shareholders, customers, and communities.
KRAFT PAPER INDUSTRY OUTLOOK: A STATEMENT BY THE BOARD OF DIRECTORS:
The Board of Directors of Nikita Papers Limited acknowledges the dynamic and evolving nature of the Kraft paper industry, driven by changing consumer preferences, regulatory frameworks, and an urgent global emphasis on sustainability. As demand for eco-friendly, biodegradable packaging solutions intensifies, Kraft paper has emerged as a preferred and viable alternative to plastic-based materials, particularly across sectors such as food packaging, e- commerce, and industrial applications.
The Kraft paper industry is experiencing robust growth, fueled by heightened environmental awareness, supportive government policies promoting sustainable packaging, and continuous innovations that improve product strength, durability, and versatility.
However, the industry also faces challenges, including raw material supply fluctuations, volatile input costs, and the imperative for ongoing technological advancements to meet evolving market and customer demands.
Nikita Papers Limited is steadfast in its commitment to these market trends by investing in sustainable manufacturing practices, broadening its eco-conscious product portfolio, and integrating cutting-edge technologies.
Our strategic focus on innovation, operational excellence, and responsible sourcing uniquely positions us to seize emerging opportunities and strengthen our leadership in the Kraft paper sector.
Looking forward, we remain optimistic about the Kraft paper industrys growth potential, aligned with global movements toward environmental stewardship and circular economy principles.
The Board reaffirms its dedication to guiding Nikita Papers Limited to a leadership position in this vibrant sector, delivering enduring value to our shareholders, customers, and the communities we proudly serve.
ANNUAL RETURN:
Pursuant to the Notification issued by the Ministry of Corporate Affairs (MCA) dated March 5, 2021, amending the Companies (Management and Administration) Rules, 2014, Nikita Papers Limited is relieved from the requirement to attach the extract of the Annual Return in Form No. MGT-9 with the Boards Report.
In accordance with Section 134(3)(a) of the Companies Act, 2013, the Annual Return for the financial year ended March 31, 2025, prepared in compliance with Section 92(3) of the Act, is available for inspection on the Companys official website.
Shareholders and other stakeholders may access the Annual Return at the following link: https://www.nikitapapers.com/annual-return.
DIVIDEND AND TRANSFER TO RESERVES IN TERMS OF SECTION 134 (3) (J) OF THE COMPANIES ACT, 2013:
The Directors of the Company have decided not to declare any dividend for the current financial year.
This decision aligns with the Companys strategic focus on reinvesting profits to support future growth and expansion initiatives. By conserving resources, Nikita Papers Limited aims to strengthen its financial position and ensure sustainable development in the years ahead.
TRANSFER TO GENERAL RESERVE:
Your Company has not transferred any amount to the General Reserve during the financial year ended March 31, 2025.
TRANSFER OF UNCLAIMED DIVIDEND TO INVESTOR EDUCTION AND PROTECTION FUND:
The provisions of Section 125(2) of the Companies Act, 2013 are not applicable as there were no unclaimed dividends lying with the Company during the financial year.
The Company has appointed Mr. Divam Mittal, Company Secretary and Compliance Officer, as the Nodal Officer of the Company with effect from July 31, 2025.
The Company continues to ensure full compliance with all applicable laws and regulations.
MATERIAL CHANGES AND COMMITMENTS AFFECTING FINANCIAL POSITION BETWEEN END OF THE FINANCIAL YEAR AND THE DATE OF THIS REPORT:
Except as disclosed elsewhere in this Annual Report, the Company confirms that there have been no material changes or significant commitments which have had or are likely to have a material impact on the financial position, operations, or performance of the Company between the end of the financial year, March 31, 2025, and the date of this Report.
DETAILS OF MEETINGS OF BOARD OF DIRECTORS AND ANNUAL GENERAL MEETING/ EXTRA-ORDINARY GENERAL MEETING HELD DURING THE FINANCIAL YEAR 2024-2025:
BOARD MEETING:
The Board of Directors meets at regular intervals to deliberate and decide on the Companys policies, business strategies, and other matters concerning the Boards responsibilities.
In instances where special or urgent business arises, the Board or relevant Committee obtains approval either by passing resolutions through circulation or by convening meetings at shorter notice, as permitted under applicable laws.
Agendas for all Board and Committee meetings are circulated in advance, accompanied by detailed notes on each item to facilitate informed decision-making by the Directors.
During the financial year 2024-25, a total of sixteen (16) Board meetings were convened and held. The interval between consecutive meetings adhered to the timelines pre scribed under the Companies Act, 2013.
| Sl. No. | Date of Meeting | Sudhir Kumar Bansal | Ashok Kumar Bansal | Ayush Bansal | Sandhya Bansal | Sudhir Kumar Jain | Akash Gupta | Ashok Kumar Mittal |
| Chairman | Managing Director | Executive Director | Executive Director | Non-Executive Independent Director | Non-Executive Independent Director | Non-Executive Independent Director | ||
| (DIN: 00321226) | (DIN: 00321238) | (DIN: 00774900) | (DIN: 09190361) | (DIN: 10442316) | (DIN: 07392916) | (DIN: 00246177) | ||
| 1. | 09-04-2024 | Yes | Yes | Yes | Yes | No | No | No |
| 2. | 30-04-2024 | Yes | Yes | Yes | Yes | No | No | No |
| 3. | 14-05-2024 | Yes | Yes | Yes | Yes | No | No | No |
| 4. | 01-06-2024 | Yes | Yes | Yes | Yes | No | No | No |
| 5. | 15-06-2024 | Yes | Yes | Yes | Yes | No | No | No |
| 6. | 21-06-2024 | Yes | Yes | Yes | Yes | No | No | No |
| 7. | 30-06-2024 | Yes | Yes | Yes | Yes | No | No | No |
| 8. | 19-07-2024 | Yes | Yes | Yes | Yes | No | No | No |
| 9. | 27-08-2024 | Yes | Yes | Yes | Yes | Yes | Yes | Yes |
| 10. | 16-11-2024 | Yes | Yes | Yes | Yes | Yes | Yes | Yes |
| 11. | 21-12-2024 | Yes | Yes | Yes | Yes | Yes | Yes | Yes |
| 12. | 27-01-2025 | Yes | Yes | Yes | Yes | Yes | Yes | Yes |
| 13. | 28-01-2025 | Yes | Yes | Yes | Yes | Yes | Yes | Yes |
| 14. | 10-02-2025 | Yes | No | No | Yes | Yes | Yes | Yes |
| 15. | 14-02-2025 | Yes | Yes | Yes | Yes | Yes | Yes | Yes |
| 16. | 24-02-2025 | Yes | Yes | Yes | Yes | Yes | Yes | Yes |
GENERAL MEETINGS:
Annual General Meeting (AGM):
The Annual General Meeting of the Company for the financial year ended March 31, 2025, was held on September 30, 2024. All Directors were present at the meeting. The shareholders considered and approved all items of business as set out in the Notice of the AGM, including adoption of financial statements and appointment/reappointment of Directors.
Extra-Ordinary General Meeting (EGM):
An Extra-Ordinary General Meeting of the Company was held on April 22, 2024, during the year under review. The meeting was convened to transact specific business matters requiring shareholders approval outside the scope of the AGM.
DIRECTORS RESPONSIBILITY STATEMENT:
Pursuant to the provisions of Section 134(5) of the Companies Act, 2013, the Board of Directors, to the best of their knowledge and ability, confirm that for the financial year ended March 31, 2025:
a) In the preparation of the annual accounts, the applicable accounting standards have been followed and there are no material departures;
b) The Directors have selected such accounting policies and applied them consistently and made judgments and estimates that are reasonable and prudent, so as to give a true and fair view of the state of affairs of the Company as at the end of the financial year and of the profit and loss of the Company for that period;
c) The Directors have taken proper and sufficient care 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;
d) The Directors have prepared the annual accounts on a going concern basis;
e) The Directors have laid down internal financial controls to be followed by the Company and such controls are adequate and operating effectively;
f) 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.
CEO AND CFO CERTIFICATION:
In accordance with Regulation 17(8) read with Part B of Schedule II of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, the Chief Executive Officer (CEO)/Managing Director (MD) and the Chief Financial Officer (CFO) of the Company have submitted a certificate to the Board of Directors. This certificate confirms the accuracy and completeness of the financial statements and cash flow statements for the financial year ended March 31, 2025. It also affirms the adequacy and effectiveness of the Companys internal control systems and the disclosure of all relevant matters to the Audit Committee. The said certificate is annexed to this Report as "Annexure - I" and forms an integral part of the Annual Report.
MANAGEMENT DISCUSSION AND ANALYSIS REPORT:
Pursuant to Regulation 34 read with Schedule V of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, the Managements Discussion and Analysis Report is annexed to this Report as "Annexure - II" and forms an integral part of the Annual Report for detailed review.
STATUTORY AUDITORS AND REPORT THEREON:
M/s. Mittal Goel & Associates, Chartered Accountants, were appointed as the Statutory Auditors of the Company for a term until March 31, 2029, by the members at the 35th Annual General Meeting held on September 30, 2024.
The Statutory Auditors have audited the Standalone Financial Statements for the financial year ended March 31, 2025, and have issued an unmodified opinion, confirming that the financial statements present a true and fair view of the financial position of the Company. Their report does not contain any qualifications, reservations, adverse remarks, or disclaimers.Further, no instances of fraud have been reported by the Statutory Auditors under Section 143(12) of the Companies Act, 2013, during the year under review.
RESOLUTION PASSED THROUGH POSTAL BALLOT:
During the year under review, no resolution was passed through postal ballot.
SECRETARIAL AUDITORS AND AUDITORS REPORT:
Pursuant to the provisions of Section 204 of the Companies Act, 2013, and the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014, the Board of Directors had appointed M/s. MMA & Associates, Company Secretaries, as the Secretarial Auditor of the Company for the financial year 2024-25.
The Secretarial Audit Report, received on August 25, 2025, confirms that the Company has complied with all applicable laws and regulations. The report contains an unmodified opinion and does not include any qualifications, reservations, adverse remarks, or disclaimers. The Secretarial Audit Report is annexed to this Report as "Annexure - III".
Further, in accordance with the amendments to the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, and as per SEBI Circular No. LIST/COMP/14/2018 dated June 20, 2018, a certificate has been obtained from M/s. MMA & Associates, Company Secretary in Practice, confirming that none of the Directors on the Board of the Company have been debarred or disqualified from being appointed or continuing as directors by the SEBI, Ministry of Corporate Affairs, or any other statutory authority. The said certificate is annexed to this Report as "Annexure - VII".
INTERNAL AUDITOR, INTERNAL CONTROL SYSTEM AND THEIR ADEQUACY:
M/s. Arora Vikas & Associates, Chartered Accountants, were appointed as the Internal Auditor of the Company for the financial year 2024-25. The Internal Auditor conducted the audit of the Companys operations in accordance with the scope and guidelines defined by the Audit Committee.
The Internal Audit Report was submitted to the Company and reviewed by the Audit Committee, which took note of the findings and recommendations. The report did not highlight any significant control weaknesses.
The Company has established a robust internal control system commensurate with its size, scale, and complexity. To ensure objectivity and independence, the Internal Audit team reports directly to the Chairman of the Audit Committee.
The audit function monitors and evaluates the adequacy and effectiveness of the internal control systems, accounting procedures, and operational policies.
Based on the Internal Auditors findings, the Company undertakes appropriate corrective actions wherever necessary, further strengthening the overall control environment. These continuous improvements in internal processes contribute to better governance, transparency, and operational efficiency.
COMPLIANCE OF SECRETARIAL STANDARDS:
The Company has complied with the applicable Secretarial Standards as prescribed under Section 118(10) of the Companies Act, 2013, along with relevant circulars issued by the Ministry of Corporate Affairs from time to time.
RESPONSE TO AUDITORS REMARKS:
The Director of the Company confirms that there are no qualifications, reservations, or adverse remarks in the Independent Audit Report issued by the Statutory Auditors or in the Secretarial Audit Report provided by the Practicing Company Secretary.
All relevant details, including notes to the accounts and accounting policies, are self-explanatory and do not necessitate any further comments.
NON-APPLICABILITY OF MAINTENANCE OF COST RECORDS:
The Central Government has not prescribed the maintenance of cost records under Section 148(1) of the Companies Act, 2013, and the Rules framed thereunder for the nature of the Companys business.
Additionally, there has been no change in the nature of the Companys business during the year under review.
PARTICULARS OF LOANS, GUARANTEES OR INVESTMENTS MADE UNDER SECTION 186 OF THE COMPANIES ACT, 2013:
During the financial year under review, the Company did not grant any loans or provide any guarantees or made any investments under Section 186 of the Companies Act, 2013 read with the Companies (Meetings of Board and its Powers) Rules, 2014.
The particulars of Non-Current Investments for the financial year 2024-25 are given in Note 13 of the Notes to the Financial Statements.
The details of Long-Term Loans and Advances and Short-Term Loans and Advances for the financial year 2024-25 are presented in Note 14 and Note 18, respectively, of the Notes to the Financial Statements.
PARTICULARS OF CONTRACTS OR ARRANGEMENTS MADE WITH RELATED PARTIES:
Pursuant to the provisions of the Companies Act, 2013 and Regulation 23 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, the Company has formulated a Policy on Related Party Transactions, which is available on the Companys website at
https://www.nikitapapers.com/public/public/uploads/Investors/1718702363 21034b3001c53d991242.pdf
The said policy aims to ensure proper reporting, approval, and disclosure processes for all transactions entered into between the Company and its related parties. The policy was last reviewed and approved by the Audit Committee at its meeting held on February 10, 2024.
All Related Party Transactions are placed before the Audit Committee for prior approval. Further, a statement containing the details of such transactions is presented to the Audit Committee on a quarterly basis for its review.In accordance with Regulation 23(9) of SEBI (LODR) Regulations, 2015, the details of related party transactions are also submitted to the Stock Exchange(s) on a half-yearly basis.
During the financial year 2024-25, all related party transactions entered into by the Company were in the ordinary course of business, on an arms length basis, and with the prior approval of the Board of Directors, wherever required.
There were no materially significant related party transactions made by the Company with its Promoters, Directors, Key Managerial Personnel, or other designated persons which may have a potential conflict with the interests of the Company at large.
The disclosures as required under Section 134(3)(h) of the Companies Act, 2013, read with Rule 8(2) of the Companies (Accounts) Rules, 2014, are provided in Form AOC-2, which is annexed to this Boards Report as "Annexure - IV".
Necessary disclosures required under the AS 18 have been made in Note No. 41 of the Notes to the Financial Statements for the financial year ended March 31,2025.
CORPORATE SOCIAL RESPONSIBILITY:
In compliance with the provisions of Section 135 of the Companies Act, 2013, read with the applicable rules, the Board of Directors, at their meeting held on February 10, 2024, formulated the Companys Corporate Social Responsibility (CSR) Policy.
Concurrently, the Board constituted a CSR Committee entrusted with overseeing and guiding the Companys CSR initiatives.
• The CSR Committee comprises:
| Name of the Member | DIN No. | Designation in the Committee | Nature of Directorship |
| Mr. Ashok Kumar Bansal | 00321238 | Chairman | Managing Director |
| Mr. Sudhir Kumar Jain | 10442316 | Member | Non-Executive Independent Director |
| Mr. Akash Gupta | 07392916 | Member | Non-Executive Independent Director |
• Web links where composition of CSR Committee, CSR Policy and CSR Projects approved by the Board are disclosed on the website of the Company:
The Following are the Webslinks:
Composition: https://www.nikitapapers.com/committees CSR Policy: https://www.nikitapapers.com/policies CSR Projects: https://www.nikitapapers.com/csr
• Details of Impact assessment of CSR Projects carried out in pursuance of sub-rule (3) of rule 8 of the Companies (Corporate Social Responsibility Policy) Rules, 2014: The provisions of Rule 8 of the Companies (Corporate Social Responsibility Policy) Rules, 2014 are not applicable on the Company.
• Details of the amount available for set off in pursuance of sub-rule (3) of rule 7 of the Companies (Corporate Social Responsibility Policy) Rules, 2014 and amount required for set off for the financial year, if any: NIL.
• Average net profit of the Company as per Section 135(5): Rs. 1,413.09 Lacs.
• (a) Two percent of average net profit of the Company as per section 135(5): Rs. 28.26 Lacs.
(b) Surplus arising out of the CSR projects or programmes or activities of the previous financial years: NIL.
(c) Amount required to be set off for the financial year, if any: NIL.
(d) Total CSR obligation for the financial year (7a+7b+7c): Rs. 28.26 Lacs.
• (a) CSR Amount spent or unspent for the financial year:
| Amount Unspent (In Rs.) | |||||
| Total Amount spent for the Financial Year (In Lacs Rs.) | Total Amount transferred to Unspent CSR Account as per section 135(6) | Amount transferred to any fund specified under Schedule VII as per second proviso to section 135(5) | |||
| Amount | Date of Transfer | Name of the Fund | Amount | Date of transfer | |
| 28.26 | NIL | NA | NA | NIL | NA |
(b) Details of CSR amount spent against ongoing projects for the financial year: Not Applicable.
(c) Details of CSR amount spent against other than ongoing projects for the financial year:
(1) (2) |
(3) | (4) | (5) |
(6) | (7) | (8) |
||
Sl. No Name of the Project |
Item from the list of activities in schedule VII to the Act |
Local Area (Yes/No) |
Location of the project |
Amount spent for the project (In Lacs Rs.) |
Mode of implement ation Direct (Yes/No) |
Mode of implementation - Through Implementing agency |
||
| State | District | Name | CSR registration Number |
|||||
1. Social Equality |
(iii) | Yes | Uttar Pradesh |
Shamli | 1.00 | No | Apna Ghar Ashram | (CSR00009304) |
2. Education |
(ii) | No | Delhi | North West Delhi | 2.50 | No | Bharat Lok Shiksha Parishad |
CSR00000667) |
3. Health Care |
(i) | No | Gujarat | Ahmedabad | 10.00 | No | Raginiben Bipinchandra Seva Karya Trust | CSR00012645) |
4. Eradicating Hunger |
(i) | No | Gujarat | Ahmedabad | 15.00 | No | Shree Hiraba Charitable Trust |
(CSR00018900) |
TOTAL |
28.50 | |||||||
(d) Amount spent in Administrative Overheads: NIL.
(e) Amount spent in Impact Assessment, if applicable: NIL.
(f) Total amount spent for the Financial Year (8b+8c+8d+8e): Rs. 28.50 Lacs.
(g) Excess amount for set off, if any: Rs. 0.24 Lacs.
• (a) Details of unspent CSR amount for the preceding three financial years:
Sl. No. |
Preceding Financial Year |
Amount transferred to Unspent CSR Account under section 135(6) (In Lacs Rs.) |
Amount spent in the reporting Financial Year (In Lacs Rs.) |
Amount transferred to any fund specified under Schedule VII as per section 135(6), if any |
Amount remaining to be spent in succeeding financial years (In Lacs Rs.) |
||
| Name of the fund | Amount (In Lacs Rs.) | Date of T ransfer | |||||
1. |
2023-24 | NIL | NIL | NA | NIL | NA | NIL |
2. |
2022-23 | NIL | NIL | NA | NIL | NA | NIL |
3. |
2021-22 | NIL | NIL | NA | NIL | NA | NIL |
(b) Details of CSR amount spent in the financial year for ongoing projects for the preceding financial year(s): Not Applicable.
• In case of creation or acquisition of capital asset, furnish the details relating to the asset so created or acquired through CSR spent in the financial year: No capital asset was created / acquired for financial year through CSR spend.
• Specify the reason(s), if the Company has failed to spend two per cent of the average net profit as per section 135(5): Not Applicable.
Under the proactive guidance of Mr. Atul Aeron, Chief Financial Officer of the Company (PAN: AOGPA8370R), the seamless execution of CSR initiatives was ensured. His leadership and strategic vision played a pivotal role in steering the Company towards impactful and meaningful contributions to society.
Through these initiatives, the Company demonstrates unwavering dedication to corporate social responsibility, advancing sustainable development objectives while simultaneously enhancing shareholder value.
By making a lasting and transformative impact on society, Nikita Papers Limited reaffirms its commitment to shaping a brighter, more inclusive future for all.
MATERIAL CHANGES AND COMMITMENTS AFFECTING THE FINANCIAL POSITION:
There have been no material changes or commitments impacting the financial position of the Company between the close of FY 2023-24 and the date of this report, except for the following significant developments:
• Initial Public Offering (IPO): Shareholders authorized the Companys IPO at an Extraordinary General Meeting (EGM) held on March 12, 2024. Subsequently, necessary amendments were made to ensure compliance with the applicable listing requirements.
• Draft Red Herring Prospectus (DRHP): The Board of Directors approved the Draft Red Herring Prospectus (DRHP) on July 5, 2024.
Following receipt of the in-principle approval from the National Stock Exchange (NSE) for the DRHP, the Board finalized and filed the Red Herring Prospectus (RHP) with NSE and other regulatory authorities on May 20, 2025.
• Final Prospectus Approval: The Board approved the final Prospectus on May 30, 2025. Subsequently, NSE granted final approval for listing the Companys equity shares on the NSE SME platform on June 3, 2025.
• Equity Shares Issuance: The Company issued equity shares through an Initial Public Offer consisting of a fresh issue of 64,94,400 equity shares with a face value of Rs.10 each, at a price of Rs. 104 per share, aggregating to Rs. 67.54 Crore.
CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE OUTGO:
In accordance with the requirements of Section 134(3)(m) of the Companies Act, 2013, read with Rule 8(3) of the Companies (Accounts) Rules, 2014, the relevant information pertaining to conservation of energy, technology absorption, foreign exchange earnings, and outgo is provided below:
A. Conservation of Energy:
i. Steps Taken or Impact on Conservation of Energy:
Nikita Papers Limited has proactively implemented a range of energy conservation initiatives across its manufacturing facilities. Key measures include optimizing machinery operations, upgrading to energy- efficient equipment, and conducting regular energy audits.
These efforts have collectively resulted in a substantial reduction in overall energy consumption, contributing to lower operational costs and a diminished carbon footprint, reinforcing the companys commitment to sustainable manufacturing practices.
ii. Steps Taken for Utilizing Alternate Source s of Energy:
The Company is strongly committed to sustainable energy practices and has taken proactive steps to integrate alternate energy sources within its operations.
The Company has installed solar power systems at select manufacturing units, significantly reducing reliance on conventional fossil fuels.
In addition to solar energy, the Company has increased the use of Refuse-Derived Fuel (RDF) — a clean, renewable fuel sourced from non-recyclable waste.
By utilizing RDF as an alternative to coal or other carbon-intensive fuels, the Company is generating green energy while simultaneously contributing to waste reduction and environmental preservation.
This transition not only minimizes dependence on carbon-intensive thermal power from the grid but also supports broader efforts to reduce greenhouse gas emissions.
These initiatives collectively enhance energy security, reduce the Companys carbon footprint, and improve operational efficiency — aligning with the Companys broader green initiatives and commitment to environmental sustainability.
iii. Capital Investment on Energy Conservation Equipment:
During the financial year 2024-25, Nikita Papers Limited continued to advance its energy conservation efforts through strategic investments in energy-efficient technologies.
Key initiatives included the adoption of high-efficiency motors, installation of LED lighting systems, and deployment of advanced energy management solutions.
These measures were undertaken to optimize energy consumption, improve operational efficiency, and reduce the environmental impact of manufacturing activities.
As part of its forward-looking approach to sustainability, the company is also planning to initiate the installation of a new boiler based on Refuse-Derived Fuel (RDF).
This move reflects a significant step toward the use of alternative and environmentally friendly fuel sources.
The RDF-based boiler is expected to reduce reliance on conventional fuels, promote waste-to-energy practices, and contribute to lowering overall carbon emissions.
Through these initiatives, Nikita Papers Limited reaffirms its commitment to responsible energy management and sustainable industrial practices.
B. Technology absorption:
i. Efforts Made Towards Technology Absorption:
Nikita Papers Limited continuously invests in upgrading and integrating advanced technologies to enhance its manufacturing processes.
The Company actively collaborates with technology partners and research institutions to adopt best-inclass practices and improve operational efficiency.
ii. Benefits Derived:
The adoption of new technologies has resulted in significant product improvements, cost efficiencies, and development of innovative paper products.
These advancements have also contributed to import substitution by enabling in-house production of certain components previously sourced from abroad.
iii. Imported Technology (During the Last Th ree Years):
a) Details of Technology Imported:
Advanced paper manufacturing machinery and process control systems.
b) Year of Import:
Between FY 2020-21 and FY 2024-25.
c) Whether the Technology Has Been Fully Absorbed:
The imported technology has been substantially absorbed and integrated into our production processes.
d) If Not Fully Absorbed, Areas and Reasons:
Ongoing efforts are in place to fully absorb certain advanced automation modules, with minor delays due to customization requirements and workforce training.
iv. Expenditure Incurred on Research and Development:
During the financial year 2024-25, the Company remained committed to exploring opportunities in process innovation, product quality enhancement, and sustainable manufacturing practices. However, no expenditure was incurred towards Research and Development activities during the year.
C. Foreign Exchange Earning and Outgo:
During the financial year 2024-25, Nikita Papers Limited actively engaged in import activities, resulting in a foreign exchange outgo of Rs. 2,328.98 Lacs. The expenditure was primarily incurred towards the import of raw materials, machinery, and advanced technologies essential for enhancing operational efficiency and production capabilities.
The company remains focused on expanding its footprint in global markets while continuing to manage foreign exchange exposures with prudence and strategic foresight.
INSURANCE AND RISK MANAGEMENT:
The assets of Nikita Papers Limited are adequately insured against risks such as fire, burglary, and other contingencies as deemed necessary by the management and recommended by the Companys bankers. This ensures robust protection of the Companys physical and financial resources.
STATEMENT CONCERNING DEVELOPMENT AND IMPLEMENTATION OF RISK MANAGEMENT POLICY OF THE COMPANY:
Nikita Papers Limited has put in place a structured approach to identifying, assessing, and addressing business risks that may impact its operations and strategic goals. The Company follows a step-wise system for risk management, wherein risks are identified at various levels—both internal and external—across the organization.
Once identified, these risks are thoroughly evaluated and analyzed to determine their potential impact. Based on this assessment, appropriate corrective and preventive measures are implemented to mitigate or eliminate the risks.
The Board of Directors regularly reviews the key business risks and associated mitigation strategies during its meetings, ensuring that risk-related discussions remain an integral part of strategic planning. In addition, the management conducts a review of the risk landscape on a half-yearly basis to ensure that emerging risks are addressed in a timely and effective manner.
Through this proactive and systematic approach, the Company ensures continued resilience and alignment with its long-term objectives.
INFORMATION ABOUT HOLDING, SUBSIDIARY, JOINT VENTURE, OR ASSOCIATE COMPANY:
The Company does not have any Holding Company, Subsidiary, Joint Venture, or Associate Company as on the date of this report.
COMPANYS POLICY RELATING TO DIRECTORS APPOINTMENT, PAYMENT OF REMUNERATION AND DISCHARGE OF THEIR DUTIES:
In compliance with the provisions of Section 178(1) of the Companies Act, 2013, relating to the constitution of a Nomination and Remuneration Committee, the Company—being a listed entity on the NSE SME Emerge Platform as at the end of the financial year—constituted the Nomination and Remuneration Committee at its Board Meeting held on February 10, 2024.
Further, in accordance with Section 178(3) of the Act, the Company has also formulated a policy on the appointment and remuneration of Directors, including criteria for determining qualifications, positive attributes, independence of Directors, and other related matters.
This policy serves as a guiding framework for ensuring transparency and consistency in the nomination and remuneration processes of the Board and senior management and annexed herewith this report as "Annexure- V".
RECEIPT OF REMUNERATION OR COMMISSION BY THE MANAGING / WHOLE TIME DIRECTOR FROM ITS HOLDING OR SUBSIDIARY COMPANY:
Since the Company does not have any Holding or Subsidiary Company, the Managing Director and Whole-Time Directors of the Company do not receive any remuneration or commission from any such entities.
APPOINTMENT AND RESIGNATION OF DIRECTORS OR KEY MANAGERIAL PERSONNEL:
A. COMPOSITION OF THE BOARD OF DIRECTORS:
The Board of Directors of the Company is composed of experienced professionals with proven competence, integrity, and leadership abilities. In addition to their deep industry knowledge and strategic insight, the Directors bring strong financial acumen and a high level of commitment to the Company, devoting substantial time to Board and Committee meetings, as well as the preparation involved.
During the year under review, the composition of the Board has remained unchanged. As on the date of this report, the Board comprises a total of seven directors, including four Executive Directors and three Non-Executive Independent Directors.
The current composition of the Board of Directors is as follows:
| Sl. No. | DIN/PAN | Name of Director/KMP | Designation |
| 1. | 00321226 | Mr. Sudhir Kumar Bansal | Chairman |
| 2. | 00321238 | Mr. Ashok Kumar Bansal | Managing Director |
| 3. | 00774900 | Mr. Ayush Bansal | Executive Director |
| 4. | 09190361 | Mr. Sandhya Bansal | Executive Director |
| 5. | 09718632 | Mr. Shitij Sharma | Additional Director |
| 6. | 10442316 | Mr. Sudhir Kumar Jain | Non-Executive Independent Director |
| 7. | 07392916 | Mr. Akash Gupta | Non-Executive Independent Director |
B. KEY MANAGERIAL PERSONNEL
As on the date of this report, the following individuals are designated as Key Managerial Personnel (KMPs) of the Company in accordance with the provisions of Sections 2(51) and 203 of the Companies Act, 2013:
| Sl. No. | DIN/PAN | Name of Director/KMP | Designation |
| 1. | 00321238 | Ashok Kumar Bansal | Managing Director |
| 2. | 00774900 | Ayush Bansal | Whole Time Director |
| 3. | AOGPA8370R | Atul Aeron | Chief Financial Officer |
| 4. | EPRPM0895F | Divam Mittal | Company Secretary & Compliance Officer |
These KMPs play a vital role in ensuring effective management, regulatory compliance, and governance within the Company.
Note: Mrs. Shefali Gupta, the former Company Secretary and Compliance Officer, resigned from her position with effect from July 18, 2025. Following her resignation, Mr. Divam Mittal was appointed as the Company Secretary and Compliance Officer of the Company with effect from July 31, 2025.
C. CHANGES IN DIRECTOR AND KEY MANAGERIAL PERSONNEL:
During the period under review, there were no changes in the Board of Directors or the Key Managerial Personnel of the Company. However, subsequent to the review period and as on the date of this Board Report, the following changes have taken place in the composition of the Board:
• Resignation:
Mr. Ashok Kumar Mittal, Independent Director, tendered his resignation from the Board with effect from June 23, 2025, due to personal reasons and professional commitments. His resignation was accepted by the Board through a resolution passed by circulation on the same date. The Board placed on record its appreciation for his valuable contributions during his tenure.
• Appointment:
To fill the resulting casual vacancy, Mr. Shitij Sharma was appointed as an Additional Director (Independent) with effect from June 23, 2025, to hold office until the date of the upcoming Annual General Meeting. His regularization as an Independent Director is proposed for approval by the shareholders at the AGM.
RECONCILIATION OF SHARE CAPITAL AUDIT:
Pursuant to Regulation 76 of the Securities and Exchange Board of India (Depository Participants) Regulations, 2018 [earlier governed by SEBI Circular No. D&CC/FITTC/CIR-16/2002 dated December 31, 2002, read with the SEBI (Depositories and Participants) Regulations, 1996], a Company Secretary in Practice conducts a Reconciliation of Share Capital Audit on a quarterly basis.
This audit is undertaken to reconcile the total admitted equity share capital with the records of National Securities Depository Limited (NSDL) and Central Depository Services (India) Limited (CDSL), and to verify the consistency of the total issued and listed equity share capital of the Company.
The audit report confirms that the total issued and paid-up share capital of the Company is in agreement with the total number of shares held in both physical and dematerialized form with NSDL and CDSL. The report, duly certified by the practicing Company Secretary, is submitted to the stock exchange where the Companys securities are listed within 30 days of the end of each quarter. This report is also placed before the Board of Directors for review and noting.
CORPORATE GOVERNANCE REPORT:
Pursuant to Regulation 15 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, the provisions relating to the preparation and submission of the Corporate Governance Report are not applicable to the Company.
BUSINESS RESPONSIBILITY AND SUSTAINABILITY REPORT (BRSR):
In accordance with Regulation 34(2)(f) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, the Business Responsibility and Sustainability Report (BRSR) is not applicable to the Company for the financial year ended March 31, 2025.
DECLARATION OF INDEPENDENT DIRECTORS A STATEMENT REGARDING OPINION OF THE BOARD WITH REGARD TO INTEGRITY, EXPERTISE AND EXPERIENCE (INCLUDING THE PROFICIENCY) OF THE INDEPENDENT DIRECTORS APPOINTED DURING THE YEAR:
Mr. Ashok Kumar Mittal (DIN: 00246177), Mr. Akash Gupta (DIN: 07392916), and Mr. Sudhir Kumar Jain (DIN: 00321226) are Independent Directors on the Board.
All Independent Directors have submitted declarations pursuant to Section 149(7) of the Companies Act, 2013, confirming that they meet the criteria of independence as specified under Section 149(6) of the Act and continue to comply with the Code of Conduct outlined in Schedule IV of the Act.
In the opinion of the Board, there has been no change in circumstances that may affect their status as Independent Directors. The Board is satisfied with their integrity, expertise, and experience, including proficiency as required under Section 150(1) of the Act and the applicable rules.
Further, in accordance with Section 150 read with Rule 6 of the Companies (Appointment and Qualification of Directors) Rules, 2014 (as amended), all Independent Directors have registered their names in the databank of Independent Directors.
The Board also confirms that the Independent Directors, including those appointed during the year, meet the criteria of expertise, experience, integrity, and proficiency as per Rule 8 of the Companies (Accounts) Rules, 2014 (as amended).
FAMILIARIZATION PROGRAMME FOR INDEPENDENT DIRECTORS:
The Company, in accordance with Schedule IV of the Companies Act, 2013, and the Listing Regulations, has established arrangements to familiarize Independent Directors with the Companys operations, their roles, rights, and responsibilities as Directors. This induction considers the nature of the industry, the Companys business model, and other relevant factors. Details of the familiarization program are available on the Companys website at www.nikitapapers.com.
COMMITTEE OF THE BOARD:
The Company has successfully listed its equity shares on the NSE EMERGE platform of the National Stock Exchange of India Limited as part of funding its next phase of growth. The IPO and subsequent listing have led to an increase in the Companys paid-up capital and have triggered additional compliance requirements under the Companies Act, 2013, and SEBI Listing Regulations. One key compliance requirement is the constitution of certain statutory committees of the Board.
Accordingly, at its meeting held on February 10, 2024, the Board of Directors constituted the following committees:
a) Audit Committee
b) Nomination and Remuneration Committee
c) Stakeholders Relationship Committee
d) Corporate Social Responsibility Committee
The composition and terms of reference of each committee as on the date of this report are detailed below:
a) AUDIT COMMITTEE:
The Board of Directors of your Company has duly constituted the Audit Committee in accordance with the provisions of Section 177 of the Companies Act, 2013, and the rules framed thereunder. The recommendations made by the Audit Committee are duly considered and accepted by the Board.
As of March 31, 2025, the Committee comprises two (2) Independent Directors and one (1) Executive Director as follows:
| Name of the Member | Din No. | Designation in The Committee | Nature of Directorship |
| Mr. Akash Gupta | 07392916 | Chairman | Non-Executive Independent Director |
| Mr. Sudhir Kumar Jain | 10442316 | Member | Non-Executive Independent Director |
| Mr. Ayush Bansal | 00774900 | Member | Executive Director |
Mrs. Shefali Gupta, the former Company Secretary who resigned on July 18, 2024, acted as the Secretary of the Audit Committee during her tenure. The primary objective of the Audit Committee is to monitor and provide effective supervision over the Managements financial reporting process, ensuring accurate and timely disclosures with the highest standards of transparency, integrity, and quality. The powers, role, and terms of reference of the Committee align with the requirements mandated under Section 177 of the Companies Act, 2013, and other applicable regulations.
During the financial year 2024-25, the Audit Committee held four meetings. The Committee deliberated on various matters within its purview and made recommendations to the Board accordingly.
| Date of Meeting | Ayush Bansal Executive Director (DIN: 00774900) | Sudhir Kumar Jain Non-Executive Independent Director (DIN: 10442316) | Akash Gupta Non-Executive Independent Director (DIN: 07392916) |
| 15-06-2024 | Yes | Yes | Yes |
| 02-09-2024 | Yes | Yes | Yes |
| 31-12-2024 | Yes | Yes | Yes |
| 10-02-2025 | No | Yes | Yes |
b) NOMINATION AND REMUNERATION COMMITTEE (NRC):
The Nomination and Remuneration Committee ("NRC") of the Board is responsible for developing competency requirements for the Board, aligned with the industry and strategic objectives of the Company.
The Board composition analysis demonstrates a thorough understanding of the Companys strategies, operational environment, financial condition, and compliance requirements.
The Board has adopted a Remuneration Policy to guide the identification, selection, and appointment of Directors, Key Managerial Personnel (KMPs), and Senior Management Personnel (SMPs).
This Policy outlines the criteria for fixing the remuneration of Directors, KMPs, SMPs, and other employees, and defines the powers, roles, and responsibilities of the NRC. There have been no changes to this Policy during the year under review.
Based on recommendations from the NRC, the Board appoints Directors considering their eligibility, experience, and qualifications. Such appointments are subsequently approved by the Members at General Meetings. The Policy also includes provisions for Board Diversity criteria.
In accordance with Section 178 of the Companies Act, 2013, the Board has formulated and adopted the NRC Policy on the appointment and removal of Directors, which incorporates the Board Diversity Policy.
The NRC has also established criteria for assessing the qualifications, positive attributes, and independence of Directors, all embedded within the NRC Policy.
As of March 31, 2025, the Committee comprises three (3) Non-Executive Independent Directors as follows:
| Name of the Member | Din No. | Designation in The Committee | Nature of Directorship |
| Mr. Sudhir Kumar Jain | 10442316 | Chairman | Non-Executive Independent Director |
| Mr. Akash Gupta | 07392916 | Member | Non-Executive Independent Director |
| Mr. Ashok Kumar Mittal | 00246177 | Member | Non-Executive Independent Director |
Mrs. Shefali Gupta, former Company Secretary who resigned on July 18, 2024, acted as the Secretary of the Committee during her tenure.
The Nomination and Remuneration Committee of the Board of Directors is responsible for recommending the nomination of Directors, evaluating the performance of individual Directors, and recommending the remuneration policy for Directors, Key Managerial Personnel, and other employees.
The Committee also addresses governance-related matters of the Company.
It oversees the implementation of the nomination, remuneration, and governance policies, regularly reviews their effectiveness, and recommends revisions whenever deemed necessary or expedient.
During the year under review, four meetings of the Nomination and Remuneration Committee were held, the details of which are summarized below:
| Date of Meeting | Sudhir Kumar Jain | Akash Gupta | Ashok Kumar Mittal |
| Non-Executive Independent Director | Non-Executive Director Independent | Non-Executive Independent Director | |
| (DIN: 10442316) | (DIN: 07392916) | (DIN: 00246177) | |
| 12-04-2024 | Yes | Yes | Yes |
| 02-09-2024 | Yes | Yes | Yes |
| 31-12-2024 | Yes | Yes | Yes |
| 29-03-2025 | Yes | Yes | Yes |
c) STAKEHOLDERS RELATIONSHIP COMMITTEE (SRC):
The Stakeholders Relationship Committee was constituted by the Board of Directors at the meeting held on February 10, 2024. As of March 31, 2025, the Committee comprises two (2) Non-Executive Independent Directors and one (1) Executive Director, as detailed below:
| Name of the Member | Din No. | Designation in The Committee | Nature of Directorship |
| Mr. Ashok Kumar Mittal | 00246177 | Chairman | Non-Executive Independent Director |
| Mr. Sudhir Kumar Jain | 10442316 | Member | Non-Executive Independent Director |
| Mrs. Sandhya Bansal | 09190361 | Member | Executive Director |
Mrs. Shefali Gupta, the former Company Secretary who resigned on July 18, 2024, acted as the Secretary of the Stakeholders Relationship Committee during her tenure.
The role and terms of reference of the Committee are in accordance with the requirements mandated under Section 178 of the Companies Act, 2013 and the applicable Regulations. Four meetings of the Stakeholders Relationship Committee were held during the year, the details of which are summarized below.
| Date of Meeting | Ashok Kumar Mittal | Sudhir Kumar Jain | Sandhya Bansal |
| Non-Executive Independent Director | Non-Executive Independent Director | Executive Director | |
| (DIN: 00246177) | (DIN: 10442316) | (DIN: 09190361) | |
| 27-06-2024 | Yes | Yes | Yes |
| 02-09-2024 | Yes | Yes | Yes |
| 31-12-2024 | Yes | Yes | Yes |
| 29-03-2025 | Yes | Yes | Yes |
d) CORPORATE SOCIAL RESPONSIBILITY COMMITTEE:
The Company strongly believes in giving back to the community and recognizes the vital role communities play in the growth of our business. The Company stands committed to the philosophy of ‘For Better Living, which encompasses actions towards For Better Communities, For Better Nutrition, For Better Sourcing, and For Better Planet.
As of March 31, 2025, the composition of the CSR Committee is as follows:
| Name of the Member | Din No. | Designation in The Committee | Nature of Directorship |
| Mr. Ashok Kumar Bansal | 00321238 | Chairman | Managing Director |
| Mr. Sudhir Kumar Jain | 10442316 | Member | Non-Executive Independent Director |
| Mr. Akash Gupta | 07392916 | Member | Non-Executive Independent Director |
Mrs. Shefali Gupta, the former Company Secretary who resigned on July 18, 2024, acted as the Secretary of the Committee.
Four meetings of the Corporate Social Responsibility Committee were held during the year, which are summarized below:
| Date of Meeting | Ashok Kumar Bansal | Sudhir Kumar Jain | Akash Gupta |
| Managing Director | Non-Executive Independent Director | Non-Executive Independent Director | |
| (DIN: 00321238) | (DIN: 10442316) | (DIN: 07392916) | |
| 27-06-2024 | Yes | Yes | Yes |
| 02-09-2024 | Yes | Yes | Yes |
| 31-12-2024 | Yes | Yes | Yes |
| 29-03-2025 | Yes | Yes | Yes |
BOARD POLICIES:
The Company is committed to upholding the highest standards of ethical conduct and integrity in all its business dealings. Guided by a strong value system, we strive to promote transparency, accountability, and responsible corporate citizenship.
In accordance with the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended, the Company has adopted and implemented various policies that form the backbone of its corporate governance framework.
These policies ensure compliance with regulatory requirements and foster a culture of sound governance across all levels of the organization.
All corporate governance policies are accessible on the Companys website at: https://www.nikitapapers.com/policies. These policies are periodically reviewed and updated by the Board of Directors to ensure their continued relevance and effectiveness.
VIGIL MECHANISM POLICY (WHISTLE BLOWER POLICY):
The Company has adopted a Whistleblower Policy, in accordance with the requirements of the Companies Act, 2013 and the Sarbanes-Oxley Act (SOX), 2002. This policy establishes a Vigil Mechanism, enabling employees and Directors to report genuine concerns or unethical behaviour without fear of retaliation or adverse consequences.
The Vigil Mechanism encourages transparency and accountability, empowering individuals to report concerns related to actual or suspected fraud, unethical conduct, violation of Company policies, or any improper activity that could potentially impact the Companys operations or reputation.
All complaints under the policy are handled in a fair and transparent manner, and the confidentiality of the whistleblower is protected at all stages.
The details of the Vigil Mechanism / Whistleblower Policy are available on the Companys website and can be accessed at:
https://www.nikitapapers.com/public/public/uploads/Investors/1718702387 897a4b135144c6802313.pdf.
CORPORATE SOCIAL RESPONSIBILITY POLICY:
Salient Features of the Corporate Social Responsibility Policy:
1. Objective and Philosophy
o NPL is committed to operating its business in a socially, economically, and environmentally sustainable manner while recognizing the interests of all stakeholders. o The Company believes in giving back to society and considers CSR a moral obligation and an integral part of business strategy.
2. CSR Policy Compliance
o The Policy is formulated in line with Section 135 of the Companies Act, 2013 and the Companies (CSR Policy) Rules, 2014 (as amended). o The Policy is applicable to all CSR initiatives undertaken in India.
3. CSR Focus Areas
The Company undertakes CSR activities in areas specified under Schedule VII of the Companies Act, 2013, including but not limited to:
o Eradicating hunger, poverty, and malnutrition o Promoting education, healthcare, and sanitation o Promoting gender equality and empowering women o Ensuring environmental sustainability o Rural development and slum area development o Contribution to disaster management and national relief funds
o Support to veterans, research, and development in science, technology, and medicine
4. CSR Committee Composition & Responsibilities
o The CSR Committee comprises three or more Directors, including at least one Independent Director.
o Key responsibilities include formulation and review of the CSR Policy, recommending CSR activities and expenditure, monitoring implementation, and reporting progress to the Board.
5. Board Responsibilities
o Approving and disclosing the CSR Policy and Committee composition o Ensuring minimum CSR spend of 2% of average net profits of the last three financial years o Ensuring effective implementation and oversight
o Disclosing reasons for unspent CSR amounts and transferring the same as per legal provisions
6. CSR Project Implementation
o CSR projects may be implemented, directly by the Company or through registered trusts/societies or Section 8 companies fulfilling statutory criteria o Partnerships may be formed with government bodies, NGOs, and other stakeholders.
7. Annual Action Plan
o The CSR Committee recommends an annual action plan to the Board, including project list, execution mode, fund utilization, monitoring, and impact assessment mechanisms.
8. Financial Commitment
o CSR budget is based on statutory obligation (2% of average net profit before tax of the past 3 years) and unspent amounts are transferred to the ‘Unspent CSR Account or other prescribed funds within stipulated timelines as per law.
o Surplus from CSR activities is not treated as business profit and is utilized as per CSR Rules.
9. Monitoring & Impact Assessment
o Robust monitoring of CSR activities is ensured through periodic reviews by the CSR Committee. o Independent impact assessments are undertaken for projects with outlays of Rs.1 crore or more, if the average CSR spend exceeds Rs.10 crore in the past 3 years.
10. Engagement of International Organizations
o The Company may engage international organizations for designing, monitoring, and evaluating CSR programs and for capacity building of personnel.
11. Disclosures & Transparency
o CSR disclosures are made in the Annual Report and on the Companys website.
o Required statutory disclosures include the composition of the CSR Committee, CSR policy, approved projects, financial outlays, and unspent amounts.
12. Review & Amendments
o The CSR Policy is periodically reviewed by the CSR Committee and updated to remain compliant with applicable laws, rules, and amendments.
13. Access to CSR Policy:
For more details, the Companys CSR Policy is available on its official website at: https://www.nikitapapers.com/policies.
DIVIDEND DISTRIBUTION POLICY:
Pursuant to Regulation 43A of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, the requirement to formulate and disclose a Dividend Distribution Policy is applicable only to the top 1,000 listed entities based on market capitalization.
As the Company is listed on the NSE SME Emerge Platform and does not fall within the threshold prescribed under Regulation 43A, the said Regulation is not applicable to the Company. Hence, the Company is not required to adopt or disclose a Dividend Distribution Policy.
MATERIALITY POLICY:
The Company has adopted a Materiality Policy to ensure timely, accurate, and adequate disclosure of material events or information in accordance with applicable laws, including the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.
This Policy outlines the framework for:
• Determining the materiality of events or information,
• Procedures and responsibilities for disclosure of such material events,
• Ensuring compliance with listing and securities laws, and
• Preventing selective disclosure of material, price-sensitive information.
The objective of the Policy is to maintain high standards of transparency, integrity, and consistency in corporate disclosures, while also safeguarding the confidentiality of sensitive information and enhancing stakeholder confidence.
The Materiality Policy of the Company can be accessed at:
https://www.nikitapapers.com/public/public/uploads/Investors/1718702241 20c09537bdd24c6fe6bd.pdf
INTERNAL FINANCIAL CONTROLS:
Your Company has implemented a robust and adequate system of internal controls, in compliance with the provisions of Section 134(3)(q) of the Companies Act, 2013, read with Rule 8(5)(viii) of the Companies (Accounts) Rules, 2014.
The internal control system is designed to be commensurate with the size, scale, nature, and complexity of the Companys operations.
These controls are structured to ensure effective and efficient conduct of business and provide reasonable assurance with respect to:
• Accuracy and reliability of financial and operational information;
• Safeguarding and proper utilization of the Companys assets and resources;
• Strict adherence to applicable internal policies and procedures;
• Compliance with applicable statutory and regulatory requirements.
The internal control environment is continuously reviewed by the Audit Committee, which monitors the implementation of audit recommendations and assesses the effectiveness of the internal controls.
The Company remains committed to strengthening the control framework and aligning it with best industry practices to support sustainable growth and governance.
CODE OF CONDUCT:
In compliance with the provisions of the Companies Act, 2013, the Board of Directors of the Company has laid down a Code of Conduct ("the Code") for all Directors and Senior Management Personnel of the Company. This Code serves as a guide to ethical and responsible behavior and promotes honesty, transparency, and integrity in business practices.
All Directors and Senior Management personnel have affirmed compliance with the Code during the financial year under review. The Code is accessible on the Companys website at the following link: https://www.nikitapapers.com/public/public/uploads/Investors/1718694869 64cfa5e9420456500318.pdf
INVESTOR COMPLAINTS DURING THE YEAR:
The Company did not receive any complaints from shareholders during the financial year under review. It continues to maintain an effective investor grievance redressal mechanism.
Further, the Company has registered itself on the SEBI Complaints Redress System (SCORES) platform, which facilitates seamless and transparent resolution of investor complaints. The Company endeavors to address and resolve all investor complaints received through SCORES within the stipulated timelines prescribed by SEBI.
CODE FOR PREVENTION OF INSIDER TRADING:
The Securities and Exchange Board of India ("SEBI"), under the powers conferred by the SEBI Act, 1992, has formulated the SEBI (Prohibition of Insider Trading) Regulations, 2015 ("the Regulations"). These Regulations apply to all companies whose securities are listed on stock exchanges, as well as to unlisted companies whose securities are proposed to be listed.
Being a listed company, the Company is required to comply with the minimum standards prescribed under the Code of Conduct ("Code") for regulating, monitoring, and reporting trading by insiders. Accordingly, the Board of Directors has approved and adopted the Code.
The Regulations strictly prohibit insiders from trading in the Companys securities based on any Unpublished Price Sensitive Information (UPSI). The Code of Conduct is available on the Companys website and can be accessed at: https://www.nikitapapers.com/public/public/uploads/Investors/1718694950 09ea1c9de40400691e12.pdf
PARTICULARS OF EMPLOYEES:
The statement containing details of employees as required under Section 197(12) read with Rules 5(2) and 5(3) of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014 (‘the Rules), as amended, who are drawing remuneration exceeding the limits specified in Rule 5(2), is provided in "Annexure - VI" attached to this report.
Further, since Nikita Papers Limited does not have any subsidiary companies, in accordance with Section 197(14) of the Companies Act, 2013, no remuneration was received by any of the Executive Directors from any subsidiary companies during the financial year 2024-25.
DISCLOSURE AS PER THE SEXUAL HARASSMENT OF WOMEN AT WORKPLACE (PREVENTION, PROHIBITION AND REDRESSAL) ACT, 2013 114 OF 20131:
The Company maintains a zero-tolerance policy towards sexual harassment at the workplace and has formulated a comprehensive policy on prevention, prohibition, and redressal of sexual harassment in accordance with the provisions of the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013 and the rules framed thereunder.
To implement this policy, the Company has constituted an Internal Complaints Committee (ICC) for the prevention and redressal of complaints related to sexual harassment at the workplace.
The ICC functions in compliance with the applicable law to ensure a safe and respectful working environment for all employees.
During the period under review, Details of Sexual Harassment cases are following:
| Sl. No. Particulars | Details |
| 1. Number of Sexual Harassment Complaints received | NIL |
| 2. Number of Sexual Harassment Complaints disposed off | NIL |
| 3. Number of Sexual Harassment Complaints pending beyond 90 days. | NIL |
DEPOSITS:
During the year under review, the Company has not accepted any deposits within the meaning of Section 73 of the Companies Act, 2013, and the Companies (Acceptance of Deposits) Rules, 2014.
The Company has received unsecured loans from Directors in earlier years. The outstanding balance of such loans as on March 31,2025, stands at Rs. 1653.12/- Lacs.
Details of these loans are disclosed in Note No. 4 (Long-term Borrowings) of the Financial Statements.
Additionally, relatives of the Directors from whom such amounts have been received have furnished declarations in writing at the time of providing the loans, confirming that the amounts were not given out of funds acquired by them through borrowing or acceptance of loans or deposits from others.
CHANGE IN THE NATURE OF BUSINESS:
During the year under review, there has been no change in the nature of the Companys business, and the Company continues to operate in the same line of business activities.
VOLUNTARY REVISION OF FINANCIAL STATEMENTS OR BOARD REPORT:
No revision of the financial statements or the Boards Report was made during the year that requires disclosure in the Boards Report pursuant to the third proviso to Sub-section (1) of Section 131 of the Companies Act, 2013.
SHARES CAPITAL:
AUTHORIZED & PAID-UP SHARE CAPITAL:
The Companys authorized share capital remained unchanged at Rs. 25,00,00,000 during the year, divided into 2,50,00,000 equity shares of Rs. 10 each.
Following the IPO allotment on June 3, 2025, the Companys paid-up share capital increased from Rs. 18,17,35,000 (1,81,73,500 shares) to Rs. 24,66,79,000 (2,46,67,900 shares).
The newly issued shares rank pari-passu with the existing equity shares in all respects.
During the year under review, the Company did not issue any additional equity shares, instruments convertible into equity shares, shares with differential voting rights, sweat equity shares, bonus shares, or any debentures/bonds.
BUY BACK OF SECURITIES:
The Company did not undertake any buyback of its securities during the year under review.
SWEAT EQUITY:
No Sweat Equity Shares were issued by the Company during the year under review.
BONUS SHARES:
No Bonus Shares were issued by the Company during the year under review.
EMPLOYEES STOCK OPTION PLAN:
During the year under review, the Company has not provided any Stock Option Scheme to its employees. DEMATERIALISATION OF SHARES:
During the year under review, all the shares of the Company were held and traded exclusively in dematerialized form.
REGISTRARS AND SHARE TRANSFER AGENTS :
During the year under review, the Company changed its Registrar and Share Transfer Agent (RTA) from HARMILAP SHARE TRANSFER AGENTS (SEBI Registration No. INR000004334) to Skyline Financial Services Private Limited (SEBI Registration No. INR000003241).
| The address of the new RTA is: | D-153A, 1st Floor, Okhla Industrial Area, Phase-I, New Delhi - 110020 Telephone No.: 011-40450193-97 Email Id: info@skylinerta.com |
All matters related to share transfer, transmission, change of address, issuance of duplicate share certificates, and other related activities are now handled by the new RTA.
Shareholders holding equity shares in physical form are encouraged to dematerialize their shares to facilitate easy transfer and participation in various corporate actions. Members may contact the Company or Skyline Financial Services Private Limited for assistance in this regard.
DISCLOSURE WITH RESPECT TO DEMAT SUSPENSE ACCOUNT / UNCLAIMED SUSPENSE ACCOUNT:
| Particulars | No. of Shareholders | No. of Shares |
| Aggregate number of shareholders and the shares in the Suspense Escrow Demat Account as on April 1, 2024 | 0 | 0 |
| Aggregate number of shareholders and the shares transferred to the Suspense Escrow Demat Account during the financial year 2024-25* | 7 | 1,92,150 |
| Number of shareholders who approached for transfer of shares from Suspense Escrow Demat Account during the financial year 2024-25 | 7 | 1,92,150 |
| Number of shareholders to whom shares were transferred from Suspense Escrow Demat Account during the financial year 2024-25 | 7 | 1,92,150 |
| Number of shareholders to whom shares were transferred from Suspense Escrow Demat Account during the financial year 2024-25 | 0 | 0 |
*Includes shares held in physical form for dematerialization to Suspense Escrow Demat Account.
The voting rights on the aforesaid shares have been frozen till the same are claimed by the rightful owners. STATEMENT OF DEVIATIONS / VARIATIONS:
During the year under review, the Company filed its Draft Red Herring Prospectus (DRHP) with the regulatory authorities, and the Initial Public Offering (IPO) process is currently underway. Accordingly, Regulation 32 of the SEBI (LODR) Regulations, 2015, relating to the utilization of IPO proceeds, is not applicable at this stage.
CREDIT RATING:
During the year under review, CARE Ratings Limited has re-affirmed the ratings of the Company as detailed below, with the outlook on the long-term rating maintained as stable:
| Facilities | Earlier Rating | Revised/ Re-affirmed Rating |
| (Long Term Bank Facilities) Long Term Ratings | CRISIL BBB-/Stable (Outlook revised from Positive; Rating Reaffirmed) | CRISIL BBB-/Stable (reaffirmed) |
| (Short Term Bank Facilities) Short T erm Ratings | CRISIL A3 (Reaffirmed) | CRISIL A3 (reaffirmed) |
ANNUAL EVALUATION OF THE BOARD, COMMITTEES, AND INDIVIDUAL DIRECTORS:
The Board of Directors has carried out an annual evaluation of its own performance, the performance of Board Committees, and individual directors, including Independent Directors, in accordance with the requirements of the Companies Act, 2013.
The evaluation of the Boards overall performance was c onducted based on feedback from all directors, covering aspects such as board composition, structure, effectiveness of board processes, quality of information provided, and overall functioning.
Similarly, the Board evaluated the performance of its Committees by gathering inputs from respective committee members on their composition, effectiveness, and conduct of meetings.
In a separate meeting exclusively held for Independent Directors, the performance of Non-Independent Directors, the Board as a whole, and the Chairman of the Company was reviewed, taking into account the perspectives of Executive and Non-Executive Directors.
The Nomination and Remuneration Committee, along with the Board, also reviewed the performance of individual directors based on criteria such as their participation in board and committee meetings, preparedness, meaningful contributions, and constructive feedback.
COMPLIANCE OFFICER DETAILS AND ADDRESS FOR CORRESPONDENCE:
• Compliance Officer:
Mr. Divam Mittal
Company Secretary & Compliance Officer
(Previous Compliance Officer: Mrs. Shefali Gupta, resigned on July 18, 2024)
• Registered Office:
A-10, Floor Ist, Land Mark Near Deepali Chowk,
Saraswati Vihar, Pitampura,
North West, New Delhi, Delhi -110 034.
• Corporate Address:
C-10, Industrial Estate,
Panipat Road, Shamli,
Uttar Pradesh - 247 776.
SIGNIFICANT OR MATERIAL ORDERS PASSED BY REGULATORS / COURTS:
During the year under review, no significant or material orders were passed by any Regulators or Courts that could affect the Companys status as a going concern or have an impact on its future operations.
DETAILS OF APPLICATION MADE OR ANY PROCEEDING PENDING UNDER THE INSOLVENCY AND BANKRUPTCY CODE, 2016 (31 OF 2016) DURING THE YEAR ALONGWITH THEIR STATUS AS AT THE END OF THE FINANCIAL YEAR:
During the year under review, no application or proceeding by or against the Company was pending before any Adjudicating Authority under the Insolvency and Bankruptcy Code, 2016 (31 of 2016).
DETAILS OF DIFFERENCE BETWEEN AMOUNT OF THE VALUATION DONE AT THE TIME OF ONE TIME SETTLEMENT AND THE VALUATION DONE WHILE TAKING LOAN FROM THE BANKS OR FINANCIAL INSTITUTIONS ALONG WITH THE REASONS THEREOF:
Not Applicable.
DETAILS IN RESPECT OF FRAUDS REPORTED BY AUDITORS UNDER SUB- SECTION (12) OF SECTION 143 OTHER THAN THOSE WHICH ARE REPORTABLE TO THE CENTRAL GOVERNMENT:
The Statutory Auditors of the Company have not reported any instances of fraud as specified under Section 143(12) of the Companies Act, 2013, during the year under review.
COMPLIANCE WITH THE PROVISIONS OF THE MATERNITY BENEFIT ACT, 1961:
The Company has complied with all applicable provisions of the Maternity Benefit Act, 1961, as amended from time to time. Nikita Papers Limited is committed to fostering a safe, inclusive, and supportive work environment for its female employees.
All statutory maternity benefits, including paid maternity leave, nursing breaks, and protection from dismissal during maternity leave, are incorporated into the Companys HR policies and are made available to eligible female employees. Additionally, the Company provides a work-from-home facility to female staff, particularly to support their maternity and childcare needs, wherever the nature of work permits.
During the financial year under review, there was no instance where any female employee availed maternity benefits. Nevertheless, the Company continues to maintain full readiness and policy support for such benefits, ensuring compliance and a family-friendly work environment.
DESIGNATED PERSON:
Mr. Divam Mittal, Company Secretary of the Company, has been designated as the authorized person for furnishing information and extending co-operation to the Registrar or any other authorized officer with respect to the beneficial interest in shares of the Company. This designation is made pursuant to Rule 9, sub-rule (5) of the Companies (Management and Administration) Rules, 2014, as amended by the Second Amendment Rules, 2023.
OTHER DISCLOSURES:
During the year under review, no transactions or events occurred relating to other items that are not applicable to the Company; accordingly, such items have not been separately commented upon and there are no agreements that are required to be disclosed in terms of Schedule V, Para G to the Listing Regulations.
ANNEXURES FORMING PART OF THIS REPORT:
The Annexures referred to in this Report and other information which are required to be disclosed are annexed herewith and form part of this Report:
| Annexure Particulars |
| I MD and CFO Certifcate |
| II Management Discussion and Analysis Report |
| III Secretarial Audit Report |
| IV Form No. AOC-2 |
| V Nomination And Remuneration Policy |
| VI Disclosures on remuneration of directors and employees of the Company |
| VII Certificate of Disqualification of Directors |
CAUTIONARY STATEMENT:
Certain statements in the Management Discussion and Analysis Report may be construed as ‘forward-looking statements within the meaning of applicable laws and regulations. These statements are based on certain assumptions and expectations of future events and involve inherent risks and uncertainties.
Actual results, performance, or achievements may differ materially from those expressed or implied in such forwardlooking statements due to various factors. Key risks include, but are not limited to, changes in demand-supply dynamics, volatility in raw material prices, changes in government policies and regulatory frameworks, fluctuations in tax regimes, global economic conditions, and other factors such as litigation, labour negotiations, and force majeure events.
The Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise.
ACKNOWLEDGEMENT:
Your Directors wish to place on record their sincere appreciation for the overwhelming cooperation and support received from investors, customers, business associates, bankers, vendors, and regulatory and governmental authorities. The Directors also extend their heartfelt gratitude to all employees at every level, whose dedication, cooperation, support, and hard work have been instrumental in enabling the Company to achieve rapid growth.
The Directors deeply acknowledge and value the sincere and dedicated services rendered by employees, customers, vendors, investors, and consultants/advisors, recognizing their collective contribution to the Companys performance.
Furthermore, the Directors express their gratitude to the Government of India, the Governments of various States and Countries, and all concerned government departments and regulatory authorities for their continued cooperation. The Directors also appreciate and cherish the contribution of every member, employee, and their families associated with the Company.
For and on behalf of the Board of Directors,
| Sd/- | Sd/- |
| Ashok Kumar Bansal | Ayush Bansal |
| Managing Director | Whole-time Director |
| DIN:00321238 | DIN:00774900 |
| Place: Shamli | |
| Date: August 20, 2025 |
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