When you remove permissions to access a folder from a group or a user, and the folder inherited these permissions from a parent folder, you will see a None record for this group or user in the Folder Permissions Report. 
However, other permissions will still be inherited. For instance, when you later add permissions (i.e., for a Technicians group) to the parent Project Alpha folder, the Finance and Budget folder will inherit these permissions.
Permissions Removed via API
Permissions for existing users or groups can be removed with Egnyte Permissions API by passing a None permission. If you use this method to remove the permissions, you'll still receive a None record in the report.
However, as in the case above, other permissions will still be inherited.
Additional Resources
If you want to learn more about folder permissions and how inheritance works, check out the articles below.