Sangal Papers Ltd Directors Report.

TO THE MEMBERS To, The Members,

We have pleasure in presenting Thirty Eighth (38th) annual report of business and operation of your Sangal Papers Limited ("The Company"), along with the standalone audited yearly financial statements for the financial year ended 31st March, 2018.

COMPANY OVERVIEW

The Sangal Papers Limited (herein after called "The Company") was incorporated in the year 1980. The Company engaged in Paper manufactured activity, The Company manufactures News Print, Writing Printing Paper and others quality paper on demand of customers. The Company faces many up and downs in its life, in starting years the company was faces many critical issues and one of them financials issue and the company approach and listed with The Board for Industrial and Financial Reconstruction (BIFR), as per order of BIFR in the year 2006, The paid up capital of the company reduce by 80%. We pray for better and bright future of the company. Our strategic objective is to build a sustainable organization that remains relevant to the agenda of our stakeholders and creating growth opportunities for our employee and increase the wealth of the company for our members. The Sangal Papers Limited manufactures the paper on the demand of customers. The company is facing avoidable and unavoidable challenges and threats. The size of the company is negligible in the papers industry.

FINANCIAL RESULT

The financial statements of the Company have been prepared in accordance with the Indian Accounting Standards (Ind AS) notified under section 133 of the Companies Act, 2013 read with Companies (Accounts) Rules, 2014 (including any modification if any). The financial statements for the Financial Year ended March 31, 2018, the Companys first Ind AS Audited Standalone Annual Financial Statements with comparative figures for the year ended March 31, 2018 also under Ind AS. The disclosure and effects of first time adoption of Ind AS are detailed in notes of financial statements and effects on the first time adoption of Ind AS. The standalone and consolidated financial highlights of your Company for the Financial Year ended March 31, 2018 are summarized as follow, details are based on:

Details of financials as per IND AS

PARTICULARS (Standalone) 31.03.2018 31.03.2017
(Amount in Lakhs) (Amount in Lakhs)
Turnover Net (Revenue from operations) 12039.98 10710.56
Other Income 72.88 30.55
Profit Before Finance charge, Tax and Dep. 627.28 569.27
Financial Charges and Depreciation
Financial Charges 163.28 214.02
Depreciation/ Amortization 100.75 93.28
PROFIT BEFORE TAX 363.25 261.97
Current Tax 82.84 73.60
MAT Credit Entitlement 0.50
Deferred Tax Liability 13.60 13.56
Income Tax (Related to Earlier Year) 6.65 3.40
PROFIT AFTER TAX 260.16 170.91

OPERATIONAL REVIEW

The Company is on its way to achieve its ultimate objectives i.e. to be economical and bring efficiency in the operations of the company and the company is moving fast in achieving its goal of maximization of shareholders wealth and objectives of the Company. The Company cares to all stakeholders.

In the series of goals of the Sangal Papers Ltd., the company is regularly exploring and critically appraising its domestic and international market, over last few years the Company has been moving closer to the ultimate consumers and has remained successful in positioning its products in a way that consumers can connect with and aspire with in mind. The Company has maintained the world- wide standard in its products and engaged in it to give sharpness to the Companys marketing strategies. The Company has diversified its product line and gained a name in the market in colored verity writing printing paper in a very short span of time. As per industry conditions and market demand, Companys main concern is on increase in production of colored verity writing printing paper. Presently colored verity writing printing paper is key product of the company and has been a main contributory factor in the increase in net profit of the Company, resulting in an increase in profit (PAT) by more than 52.22% (approx) as comparison last year. Sangal Papers Ltd. has given its best performance in all area. During the year under review the Company has achieved a turnover (Net) of Rs. (In lakhs) 12039.98 as against previous figure of Rs. (In lakhs) 10710.56 increase in sale 12.41% (approx).

During the year under review PBT (profit before tax) were Rs. (In lakhs) 363.25 as compared to previous year figure of Rs. (In lakhs) 261.97, posting an increase by 38.66 % (approx) in PBT. Net profit and PAT (profit after tax) were Rs. (In lakhs) 260.16 as compared to previous year figure of Rs. (In lakhs) 170.91 reporting an increase of 52.22% (approx) in net profit as compared to previous year. The operating and fixed expenses are increased during the financial year resulting in lower net profits after tax and therefore, Companys net profit could not post the corresponding increase.

SHARE CAPITAL

The paid up equity capital as on 31st March 2018 was Rs. 13,072,600/- (Rupees One Crore Thirty Lacs Seventy Two Thousand Six Hundred Only) divided into 13,07,260 Equity Shares of Rupees 10/- each. There is no change in Share Capital of the company during the financial year 2017-2018.

DIVIDEND

Board of Directors of the Company has opted to plough back the profits for future growth and do not recommend any Dividend for the financial year ending on 31/03/2018.

CASH AND EQUIVALENTS

Cash & Equivalents as on date 31st March, 2018 was Rs. 27.04 (In lakhs). The company continues to focus on judicious management of its working capital, receivables, inventories and other working capital parameters were kept under strict check through continuous monitoring.

EARING PER SHARE (EPS)

The earning per equity share of the company for the financial year ended on 31/03/2018 was Rs. 19.90/per share and pervious year was Rs. 13.07/per share. The Company has reported an increment of 52.26% in EPS for the said financial year.

CHANGES IN BANKER OF THE COMPANY

During the year under review, The Company has changed it lead Banker form Axis Bank Ltd, Boundary Road, Meerut to State Bank of India, Ganga Plaza, Begum Bridge Meerut to State Bank of India, Ganga Plaza, Meerut, UP. The terms and conditions of SBI are more favorable then Axis Bank Ltd.

DEPOSITS

The Company has not accepted any fixed deposits from public and as such, accordingly no amount, principal or interest amount was outstanding as on the date of the Balance Sheet.

CREDIT RATING

Your Company enjoys credit rating from Brickwork Ratings, The Brickwork Ratings has upgraded credit rating of upgraded the rating from BWR BB+ (Pronounced as BWR Double B Plus), Outlook: Stable to BWR BBB- (Pronounced as BWR Triple B Minus), Outlook: Stable (Upgraded) for Fund Based- Cash Credit and Term Loan (o/s) and BWR A4+ (Pronounced as BWR A Four Plus) to BWR A3 (Pronounced as BWR, A Three) (upgraded) for Non Fund Based: Bank Guarantee and ILC/FLC.

PARTICULARS OF LOANS, GUARANTEES OR INVESTMENTS:

The Company has not given any loans or guarantee covered under the provisions of section 186 of the Companies Act, 2013. Other details can find on the Notes to the financial statements of the Company.

MANAGEMENTS DISCUSSION AND ANALYSIS:

In the term of Regulation 34 of SEBI (Listing Obligations and Disclosure Requirements), Regulation 2015, the Management Discussion and Analysis is set out in this Annual Report.

INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY:

The Company has an Internal Control System, commensurate with the size, scale and complexity of its operations. The scope and authority of the Internal Audit function is defined in the Internal Audit Manual. To maintain its objectivity and independence, the Internal Audit function reports to Chairman of the Audit Committee and to the Managing Director.

The Internal Audit Department monitors and evaluates the efficacy and adequacy of internal control system in the Company, its compliance with operating systems, accounting procedures and policies at all locations of the Company. Based on the report of internal audit function, process owners undertake corrective action in their respective areas and thereby strengthen the controls. Significant audit observations and recommendations along with corrective actions thereon are presented to the Audit Committee of the Board.

CORPORATE SOCIAL RESPONSIBILITY

Since the Company has not fulfill the criteria in respect of constitution of Corporate Social Responsibility as specified in the Section 135 of the Companies Act 2013 read with Companies (Corporate Social Responsibility) Rules, 2014 , therefore no CSR Committee is constituted.

CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE EARNINGS AND OUTGO The information on conservation of energy, technology absorption and foreign exchange earnings and outgo as required to be disclosed pursuant to Section 134(3)(m) of the Companies Act, 2013, read with Rule 8 of the Companies (Accounts) Rules, 2014, are given to the extent applicable herein below:

CONSERVATION OF ENERGY

Paper manufacturing Industries one of the growing industries in india. The basic need of paper industries is raw material i.e. waste paper and energy to produce the final product. Our company is seeking to optimize use of energy and installing new equipments for reduce the consumption of energy and pollution. The company is ensuring about that: (a) the manufacturing operations are conducted in the manner whereby optimum utilization and maximum possible savings of energy is achieved. (b) No specific investment has been made in reduction in energy consumption. (c) As the impact of measures taken for conservation and optimum utilization of energy are not quantitative, its impact on cost cannot be stated accurately. (d) Since the Company does not fall under the list of Industries which should furnish information on conservation of energy, the question of furnishing the same does not arise.

TECHNOLOGY ABSORPTION

Companys products are manufactured by using In-house know how and no outside technology is being used for manufacturing activities. The Company is adopting green initiation for reduce the pollution and being more eco friendly. Therefore no technology absorption is required. The Company constantly strives for maintenance and improvement in quality of its products and entire in-house Research & Development activities are directed to achieve the aforesaid goal.

IMPORTS/ EXPORTS AND FOREIGN EXCHANGE EARNINGS AND OUTGO A. IMPORTS

Import of raw materials during the year, detailed as per mentioned in notes of financials statements of the company. B. EXPORTS

Exports to Gulf, European, Asian and other Countries. Exports during the year increased to Rs. (in lakhs) 1477.11 from Rs. (in lakhs) 844.15 in the previous year.

Details are provided under the Point 20 of "Notes to Financial Statements" for the financial year ended as on 31stMarch 2018.

DEVELOPMENTS IN INDUSTRIAL RELATIONS/ HUMAN RESOURCES INCLUDING NUMBER OF EMPLOYEE EMPLOYED

The company is a paper manufacturing industry, We are maintaining a culture and custom for our employee to attract and retain the best talent. During the year under review, your Company enjoyed cordial relationship with workers and employees at all levels.

DIRECTORS RETIREMENT AND RE-APPOINTMENT

Pursuant to the provisions of section 152 of the Companies Act, 2013 and Articles of Association of the Company, Mr. Vinayak Sangal (DIN NO. 06833351) Director (Non-Executive) retires by rotation and, being eligible, offer himself for re- appointment. The Board of Directors recommend Mr. Vinayak Sangal for re- appointment. Pursuant to the provisions of section 152 of the Companies Act, 2013 and Articles of Association of the Company, Mr. Tanmay Sangal (DIN: 01297057) Director (Non-Executive) retires by rotation and, being eligible, offer himself for re- appointment. The Board of Directors recommend Mr. Tanmay Sangal (DIN: 01297057) for re- appointment.

The tenure of Mr. Pren Sethi (DIN- 07146425), Director (Independent and Non-executive) is expiring on 38th (Thirty Eighth) Annual General Meeting of the company, on the recommendation of Nomination and Remuneration Committee, the Board of Director of the company reappointed (subject to the approval of Members in 38th (Thirty Eighth) Annual General Meeting) Mr. Prem Sethi for second term upto 43rd (Forty Third) Annual General Meeting of the Company.

The tenure of Mrs. Geeta Gupta (DIN- 00095939), Director (Independent and Non-executive) is expiring on 38th (Thirty Eighth) Annual General Meeting of the company, on the recommendation of Nomination and Remuneration Committee, the Board of Director of the company reappointed (subject to the approval of Members in 38th (Thirty Eighth) Annual General Meeting) Mrs. Geeta Gupta for second term upto 43rd (Forty Third) Annual General Meeting of the Company.

CORPORATE GOVERNANCE AND MANAGEMENT DISCUSSION & ANALYSIS REPORT

The Corporate Governance and Management Discussion & Analysis Report, which form an integral part of this Report, are set out as separate Annexure, together with the Certificate from the auditors of the Company regarding compliance with the requirements of Corporate Governance as stipulated under various regulations of the SEBI (Listing obligations and disclosure requirements) Regulations, 2015.

DIRECTORS AND KEY MANAGERIAL PERSONNEL ("KMP")

The Board of Director of the Company having such executive and non-executive directors.

Key Managerial Personnel

Mr. Himanshu Sangal (Managing Director), Mr. Amit Sangal (Whole Time Director cum CFO), Mr. Shivam Sharma (Company Secretary) of the Company.

Directors

Mr. Tanmay Sangal (Director),Mr. Vinayak Sangal (Director), Mr. Prem Sethi (Director) and Mrs. Geeta Gupta (Director), of the Company.

INTERNAL FINANCIAL CONTROL AND ITS ADEQUACY

The Board has adopted polices and procedure for ensuing the orderly and efficient conduct of its business, including adherence to the companys policies, the safeguard of its assets, the prevention and detention of fraud and error, the accuracy and completeness of the accounting records, and the timely preparation of reliable financial disclosure.

BOARD EVALUATION

Pursuant to Regulation 25 of the SEBI (Listing Obligations and Disclosure Requirements) Regulation, 2015, mandate that the Board shall monitor and review the Board evaluation framework. The framework include the evaluation of the Board of Directors on various parameters, the Board has carried out an evaluation of its own performance, the directors individually as well as the evaluation of the Working of its Audit Committee and Nomination and Remuneration Committees. Board evaluation policy has posted on website of the Company at www.sangalpapers.com, you may find. The manner in which the evaluation has been carried out has been explained in the Corporate Governance Report.

DIRECTOR APPOINTMENT AND REMUNERATION POLICY

The policy on directors appointment and remuneration, including criteria for determining qualification, positive attribute and independence of a director and other relevant matter, as required as per section 178(3) of Companies Act, 2013 and SEBI (Listing Obligations and Disclosure Requirements) Regulation, 2015, The Board has, on the recommendation of the Nomination and Remuneration Committee framed a policy for selection and appointment of Directors, Senior Management and their remuneration. Remuneration policy has posted on website of the Company at www.sangalpapers.com, you may find. The remuneration Policy is stated in Corporate Governance Report.

DECLARATION BY THE INDEPENDENT DIRECTORS

The company received necessary declaration from each independent director under section 149(7) of Companies Act, 2013, that he/she meets the criteria of independency laid down in section 149 (6) of Companies Act, 2013 and Regulation 25 of SEBI (Listing Obligations and Disclosure Requirements) Regulation, 2015.

FAMILIARIZATION PROGRAM AND INDEPENDENT DIRECTORS MEETING

During the relevant financial year, as per company policy the Board of Directors of the company has conducted a separate meeting of the independent directors for the purpose of evaluation of the Board of Directors as whole and individually and also conducted the familiarization program for introduction to the Board and to attend an orientation program. The Details of Training and familiarization program are provided in the corporate governance report and also available on website (www.sangalpapers.com) of the company.

BOARD DIVERSITY

We understand the value and importance of balanced and diverse board in the company. We always support a better/best board in the company. The company believe that a truly diverse board will changes in thoughts, perspective, knowledge, skills, industry experience, cultural and geographical background, age, gender that will help us retain our competitive advantage.

MEETINGS OF BOARD OF DIRECTORS AND COMMITTEE

During the financial year 2017-2018, Nine (9) Board of Directors Meetings, Six (6) Audit Committee Meetings, Five (5) Nomination and Remuneration Committee Meetings and Five (5) Stake holder Relationship Committee meetings were convened and held. The details of which given in the Corporate Governance Report. The maximum interval between any two meeting of Board of Directors and Audit Committee, did not exceed 120 days, as prescribed under the Companies Act, 2013 and SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

AUDIT COMMITTEE RECOMMENDATIONS

During the year, if any recommendations of Audit Committee were reviews and approved by the Board of Directors.

MATERIAL CHANGES AND COMMITMENT AFFECTING THE FINANCIAL POSITION OF THE COMAPNY

There have been no material changes and commitments affecting the financial position of The Company which have occurred between the end of the financial year of the Company to which the financial statements relate and the date of the report.

CHANGE IN THE NATURE OF BUSINESS

The Company engaged in single segment i.e. manufacturing of paper, The Company has not undergone any changes in the nature of the business during the financial year.

THE DETAILS OF SIGNIFICANT AND MATERIAL ORDER PASSED BY THE REGULATORS OR COURTS OR TRIBUNALS

IMPACTING THE GOING CONCERN STATUS AND COMPANYS OPERATION IN FUTURE

There are no significant and material orders passed by the regulators or courts or tribunals impacting the going concern status and The Companys operation in future.

DIRECTORS RESPONSIBILITY STATEMENT

Pursuant to Section 134(5) of the Companies Act 2013, your Directors confirm that:

(a) In the preparation of the annual accounts, the applicable accounting standards have been followed with no material departures; (b) They 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 review of the state of affairs of the Company at the end of the financial year and of the profit of the Company for the same period; (c) They 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) They have prepared the annual accounts on a going concern basis; (e) They have laid down internal financial controls in the Company that are adequate and are operating effectively; and (f) They have devised proper systems to ensure compliance with the provisions of all applicable laws and that these are adequate

RELATED PARTY TRANSACTIONS

Sangal Papers Limited has formulated a policy on Related Party Transaction. The same is available on the company website (www.sangalpapers.com). All the Related Party Transactions are placed before the audit committee for its review on quarterly basic. The related party transactions have already been disclosed in the financial statements. No transaction of material nature has been entered into by the Company during the year which may have potential conflict with the interest of the Company. All related party transactions that were entered into during the financial year were on arms length basis and were in the ordinary course of the business. There are no materially significant related party transactions made by the company with promoters, key managerial personnel or other designated persons which may have potential conflict with interest of the Company at large. None of the transactions with related parties falls under the scope of section 188(1) of the Companies Act, 2013. Information on transactions with related parties pursuant to section 134(3)(h) of the Act read with rule 8(2) of the Companies (Accounts)Rules, 2014 are given in Annexure I in Form AOC-2 and forms part of this report.

SUBSIDIARY COMPANIES, JOINT VENTURE AND ASSOCIATE COMPANY

The Company does not have any subsidiary, joint venture and associate company during the relevant financial year 2016-2017.

CODE OF CONDUCT

The Board of Directors has approved a Code of Conduct which is applicable to the members of the Board and all employees in the course of day to day business operations of the company. The Company believes in "Zero Tolerance" against bribery, corruption and unethical dealings/behaviors of any form and the Board has laid down the directives to counter such acts. The code laid down by the Board is known as "Code of Business Conduct" which forms and Appendix to the Code and same is available on the company website (www.sangalpapers.com).

The Code lays down the standard procedure of business conduct which is expected to be followed by the Directors and the designated employees in their business dealings and in particular on matters relating to integrity in the work place, in business practices and in dealing with stakeholders. The Code gives guidance through examples on the expected behavior from an employee in a given situation and the reporting structure.

All the Board members and the Senior Management personnel have confirmed compliances with the code. All management Staff were given appropriate training in this regard.

VIGIL MECHANISM/ WHISTLE BLOWER POLICY

Pursuant to Section 177(9) of the Companies Act, 2013 and Regulation 22 of SEBI (Listing Obligations and Disclosure Requirements) Regulation, 2015, the Company has formulated a Whistle Blower Policy to establish a vigil mechanism for directors and employees of the Company. The purpose and objective of this Policy is to provide a framework to promote responsible and secure whistle blowing. It protects the employees wishing to raise a concern about serious irregularities within the Company. The details of the Whistle Blower Policy are explained in the Corporate Governance Report and also posted on the website of the Company.

STATUTORY AUDITORS

Pursuant to the provisions of section 139 of the Companies Act, 2013, the rules made there under and that they are not disqualified in terms of Section 141 of the Act and SEBI (Listing Obligations and Disclosure Requirements) Regulation, 2015, M/s Raj Sandhya & Co., Chartered Accountants(Registration No.:002011C), Muzaffarnagar, have been appointed as Statutory Auditors of the Company for a period Five (5) years at the annual general meeting held on 29th September, 2017, subject to ratification of their appointment by the members at every general meeting. The Auditors have confirmed that, their appointment would be in accordance with the Section 139 of the Companies Act, 2013 and the rules made there under and that they are not disqualified in terms of Section 141 of the Act. The shareholders at the ensuing annual general meeting will consider ratification of the appointment of the Statutory Auditor of the company for the financial year 2018-2019. As required under provisions of Section 139 Companies Act, 2013 and SEBI (Listing Obligations and Disclosure Requirements) Regulation, 2015, the Auditors have confirmed that they hold a valid certificate issued by the Peer Review Board of the Institute of Chartered Accountants of India.

COST AUDIT

Pursuant to the provision of the section 148 (3) of Companies Act, 2013 read with rule 6 (2) of Companies (Cost Records and Audit) Amendment Rule, 2014 (include any modification or reenactment thereof, if any) and other applicable law, rules or regulations, if any. Pursuant to Section 148 of the Companies Act, 2013 read with the Rule 6 (2) Companies (Cost Records and Audit) Amendment Rules, 2014 (include any modification or reenactment if any), the Company appointed Mr. S. R. Kapur, Cost Accountant (Membership No.:- M-4926), Add.: 278, Pakka Bagh, Holi Chock, Khatauli, Muzaffarnagar, UP-251201 for the financial year ended 2019 with such remuneration and other term and condition as may be agree by the Board of Directors of the Company.

SECRETARIAL AUDIT

Pursuant to provision of Section 204 of the Companies Act, 2013 and The Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014, The Board of Directors appointed Mr. DK Gupta proprietor of M/s D. K Gupta & Co., Practicing Company Secretary, to undertake the Secretarial Audit of the Company for the financial year 2018-2019. The Secretarial Audit Report is annexed herewith as "Annexure II".

AUDITORS REPORT/ SECRETARIAL AUDIT REPORT:

The observation made in the Auditors Report read together with relevant notes thereon have been explained in

Notes on Account and hence, do not call for any further comments under Section 134 of the Companies Act, 2013. As required under section 204 (1) of the Companies Act, 2013 the Company has obtained a secretarial audit report. Observations, if any made there are self explanatory and read with Notes on Account of financial Statement.

PREVENTION OF INSIDER TRADING:

In January 2015, SEBI notified the SEBI (Prohibition of insider trading) Regulations, 2015 which came into effect from May 15, 2015. Pursuant thereto, the Company has formulated and adopted a new Code for Prevention of Insider Trading. The Company has adopted a Code of Conduct for Prevention of Insider Trading with a view to regulate trading in securities by the Directors and designated employees of the Company. The Code requires pre-clearance for dealing in the Companys shares and prohibits the purchase or sale of Company shares by the

Directors and the designated employees while in possession of unpublished price sensitive information in relation to the Company and during the period when the Trading Window is closed. The Board is responsible for implementation of the Code. All Directors and the designated employees have confirmed compliance with the Code.

EXTRACT OF ANNUAL RETURN

The details forming part of the extract of the Annual Return in form MGT -9 is annexed herewith as "Annexure III".

PARTICULARS RELATING TO THE SEXUAL HARASSMENT OF WOMAN AT WORKPLACE (PREVENTION, PROHIBITION AND REDRESSAL) ACT, 2013.

The Company has always believed in providing a safe and harassment free workplace for every individual working in its premises through various policies and practices. The Company always endeavors to create and provide an environment that is free from discrimination and harassment including sexual harassment. The Company has adopted a policy on Prevention of Sexual Harassment at Workplace which aims at prevention of harassment of employees and lays down the guidelines for identification, reporting and prevention of undesired behavior. An Internal Complaints Committee ("ICC") has been set up from the senior management which is responsible for redressal of complaints related to sexual harassment and follows the guidelines provided in the Policy. During the year ended March 31, 2018 no complaints pertaining to sexual harassment have been received.

RISK MANAGEMENT POLICY

Pursuant to section 134 (3) (n) of the Companies Act, 2013, the company not required to constituted a business risk management committee, in spite of the company have Risk Management policy. The details of the policy and its terms of reference are set out in the corporate governance report forming part of the Boards report. On the recommendation of the Risk Management Committee, the Board has adopted Risk Management Policy, which outlines the programme implemented by the Company to ensure appropriate risk management within its system and culture. The Risk Management Policy is also posted on the website of the Company. The Companys risk management programme comprises of a series of processes, structures and guidelines which assist the Company to identify, assess, monitor and manage its business risks, including material changes to its risk profile. To achieve this, the Company has clearly defined the responsibility and authority of the Companys Board of Directors and of the Risk Management Committee to oversee and manage the risk management programme while conferring responsibility and authority on the Companys senior management to develop and maintain the risk management programme in light of the day to day needs of the Company. Regular communication and review of risk management practices provide the Company with important checks and balances to ensure the efficacy of its risk management programme.

Applicable of GST

The Company successfully implemented GST in the month of July 2017, as per the Governments direction. The new implementation was done across its billing and financial application. In GST, as base tax structure was undergoing a change, the impact of the change was on all the financial related process, necessitating careful approach using manual validations.

PARTICULARS OF EMPLOYEES

The provisions of Rule 5 (2) & (3) of the Companies (Appointment & Remuneration of Managerial Personnel) Rules, 2014 (include any modification or amendment thereof, if any) requiring particulars of the employees in receipt of remuneration in excess of Rupees One Crore and Two Lakh per year and Rupees Eight lakh Fifty Thousand per month only to be disclosed in the Report of Board of Directors are not applicable to the Company as none of the employees was in receipt of remuneration in excess of Rupees One Crore and Two Lakh per year and Rupees Eight lakh Fifty Thousand per month during the financial year 2017-18. The information required under section 197 (12) of the Companies Act, 2013 read with Rules 5 of the Companies (Appointment & Remuneration of Managerial Personnel) Rules, 2014 is given in the Statement annexed herewith as "Annexure IV ".

ACKNOWLEDGEMENTS:

Your Company and its Directors wish to extend their sincerest thanks to the Members of the Company , Bankers, State Government, Local Bodies, Customers, Suppliers, Executives, Staff and workers at all levels for their continuous co-operation and assistance.

Place :Mawana By Order of the Board of Directors
Date : 30/05/2018 FOR Sangal Papers Ltd.
CIN : L21015UP1980PLC005138
Himanshu Sangal
Chairman & Managing Director
Reg. Office : 22 KM, Meerut - Mawana Road,
Mawana 250 401, Distt. Meerut (U.P.)
(DIN 00091324)
PH- 01233- 271515, 274324
E- Mail: sangalinvestors1980@gmail.com