Balkrishna Paper Mills Limited has formally notified stock exchanges that it does not qualify as a Large Corporate under the SEBI framework established through circular SEBI/HO/DDHS/DDHS-RACPOD1/P/CIR/2023/172 dated October 19, 2023. The company submitted its initial disclosure in the prescribed format to both BSE Limited and National Stock Exchange of India Limited on April 17, 2026.

Company Financial Position

The disclosure reveals key financial information about Balkrishna Paper Mills Limited's borrowing position and regulatory status. The company provided specific details about its outstanding debt obligations as required under the SEBI circular.

Regulatory Compliance Status

Balkrishna Paper Mills Limited explicitly confirmed that it does not meet the applicability criteria for Large Corporate classification under the SEBI circular. The company stated that based on its current financial parameters, particularly its outstanding long-term borrowing of Rs. 32.50 crores, it falls outside the scope of the Large Corporate framework requirements.

The disclosure indicates that the company does not have a credit rating for the previous financial year, which is reflected as "N.A." in the submitted format. Additionally, the provision for fine payment through stock exchanges is marked as not applicable to the company's current status.

Official Authorization

The disclosure was officially authorized and digitally signed by two key executives of Balkrishna Paper Mills Limited. Company Secretary and Compliance Officer Omparakash Singh signed the document on April 17, 2026, at 17:38:03, followed by CFO Manish Malpani's digital signature at 17:38:46 on the same date. This dual authorization ensures proper corporate governance compliance in the regulatory submission process.

Balkrishna Paper Mills Ltd's board of directors has approved significant strategic decisions during their meeting held on April 10, 2026, including entry into the real estate sector and securing substantial funding through inter-corporate deposits. The company has disclosed these developments under Regulation 30 of the SEBI Listing Regulations.

Real Estate Business Diversification

The board has approved the commencement of real estate development and allied activities, which falls under the authorized business activities in sub-clause 3 of Clause III(A) of the company's Memorandum of Association. This strategic move represents a significant diversification from the company's traditional paper manufacturing operations.

Inter-Corporate Deposit Arrangements

The board has approved availing inter-corporate deposits (ICDs) from two related parties, subject to shareholder approval. These arrangements will provide the company with necessary funding for its operations and new business ventures.

Transaction Terms and Conditions

Both inter-corporate deposit arrangements share identical terms and conditions. The transactions are structured as arm's length deals within the ordinary course of business. Key features include:

• Interest Payment: Annual basis or at full repayment, whichever is earlier
• Prepayment: Subject to mutual consent of both parties
• Disbursement: Available in one or more tranches as required
• Extension: Repayment schedule can be extended by mutual agreement

Financial Context and Materiality

The company disclosed that it has incurred losses in the preceding three years and currently has negative net worth. The ICD amounts exceed 10% of annual turnover, classifying these as material related party transactions requiring shareholder approval.

Fund Utilization Strategy

The inter-corporate deposits will serve multiple purposes for Balkrishna Paper Mills:

• Meeting working capital requirements for daily business operations
• Debt repayment obligations
• Funding the newly approved real estate development business
• Supporting overall business expansion initiatives

The board meeting, which commenced at 6:25 PM and concluded at 7:00 PM, represents a pivotal moment in the company's strategic evolution as it ventures into real estate development while securing necessary funding through related party arrangements.