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Notes to Accounts of Archidply Industries Ltd.
Mar 31, 2025
20. Contingent Liabilities & Contingent Assets:
Contingent liabilities are not provided for but are
disclosed by way of Notes on Accounts. Contingent
liabilities is disclosed in case of a present obligation from
past events
(a) when it is not probable that an outflow of resources
will be required to settle the obligation;
(b) when no reliable estimate is possible;
(c) unless the probability of outflow of resources is
remote.
Contingent assets are neither accounted for nor
disclosed by way of Notes on Accounts where the
inflow of economic benefits is probable.
21. Current And Non- Current Classification:
The Normal Operating Cycle for the Company has been
assumed to be of twelve months for classification of
its various assets and liabilities into "Current" and "Non¬
Current".
The Company presents assets and liabilities in the
balance sheet based on current and non-current
classification.
An asset is current when it is
(a) expected to be realised or intended to be sold or
consumed in normal operating cycle
(b) held primarily for the purpose of trading
(c) expected to be realised within twelve months after
the reporting period
(d) Cash and cash equivalent unless restricted from
being exchanged or used to settle a liability for at
least twelve months after the reporting period.
(e) All other assets are classified as non-current.
A liability is current when
(a) it is expected to be settled in normal operating
cycle
(b) it is held primarily for the purpose of trading
(c) it is due to be discharged within twelve months
after the reporting period
(d) there is no unconditional right to defer the
settlement of the liability for at least twelve months
after the reporting period.
(e) All other liabilities are classified as non-current.
Deferred tax assets and liabilities are classified as non¬
current assets and liabilities.
22. Corporate social responsibility (CSR) Activity
In case of CSR activities undertaken by the Company,
if any expenditure of revenue nature is incurred or an
irrevocable contribution is made to any agency to be
spent by the latter on any of the activities mentioned
in Schedule VII to the Companies Act, 2013, the same is
charged as an expense to its Statement of Profit and Loss
and if any extra material amount has been done the same
has been carried forward as current asset.
23. Earnings Per Share
Earnings per share are calculated by dividing the net
profit or loss before OCI for the year attributable to equity
shareholders by the weighted average number of equity
shares outstanding during the period. For the purpose
of calculating diluted earnings per share, the net profit
or loss before OCI for the period attributable to equity
shareholders and the weighted average number of shares
outstanding during the period are adjusted for the effects
of all dilutive potential equity shares.
24. Segment Reporting
The Company''s operating business segments are
organized and managed separately according to the
nature of products and services provided, with each
segment representing a strategic business unit that
offers different products and serves different markets.
25. Provisions
Provisions are recognised when the Company has a
present obligation (legal or constructive) as a result of
a past event, it is probable that an outflow of resources
embodying economic benefits will be required to settle
the obligation and a reliable estimate can be made of
the amount of the obligation. When the Company
expects some or all of a provision to be reimbursed,
the reimbursement is recognised as a separate asset,
but only when the reimbursement is virtually certain.
The expense relating to a provision is presented in the
statement of profit and loss net of any reimbursement.
Provisions are reviewed at each balance sheet date and
adjusted to reflect the current best estimate. If it is no
longer probable that the outflow of resources would
be required to settle the obligation, the provision is
reversed.
Notes:-
1. The title deeds of immovable properties are held in the name of the company, in case of land which are on long term lease
from government, the lease agreement are duly executed in favor of company.
2. For details assets pledged against borrowings Refer Note No. 16 & 20
3. Company has not revalued its Property, Plant & Equipment & Intangible assets during the period ending 31st March, 2025 and
also during the previous period ending 31st March, 2024.
4. Intangible asset under development is Nil (PY Nil)
5. The Company has elected to apply IND AS 116 to its leases and has recognised lease liabilities and corresponding right of use
assets. In the statement of profit and loss for the year ended, depreciation expenses on right of use assets and finance cost
for interest accrued on such lease liability has been recognized.
6. For details of Lease Liabilities Refer Note No. 17 & 21
7. Company has not revalued its Right -to- use assets during the period ending 31st March, 2025.
8. During the year ended March 31,2025, certain assets which were old and have no realisable value having Net book value of
Rs.1.59 Lakhs/-(PY Rs. Rs.0.51 Lakhs/-) (Gross book value of Rs. 14.82 Lakhs/-(PY Rs. 6.46 Lakhs/-)) were retired and shown as
impairement loss in the books.
e. Equity shares movement during the 5 years preceding March 31, 2025
Equity shares extinguished on buy-back
In the Financial Year 2020-2021, the Company has Bought back its 22,00,000 equity shares @Rs.37/- per share amounting to Rs.
8.14 Crores being 9.97% of the total equity share. The equity shares bought back were extinguished on March 17, 2021.
The Company does not have any Holding/ Ultimate Holding Company. As such, no shares are held by them or their
Subsidiaries/ Associates.
There are NIL ( Previous year NIL) shares reserved for issue under option and contracts/commitment for the sale of shares/
disinvestment.
Note: - 41 Disclosures Pursuant To Securities And Exchange Board Of India (Listing Obligations And Disclosure
Requirements) Regulations, 2015 And Section 186 Of The Companies Act, 2013
Details of investments made have been given as part of Note ''3'' Investments in Subsidiary.
In the year 2022-2023 Company has given Corporate Guarantee for availing a loan facility on behalf of M/s Archidply Decor
Ltd related concern of the Company to Kotak Mahindra Bank (1000 lakhs) and HDFC Bank Limited (1500 lakhs) for the
credit facilities granted by them for the purpose of principal business activity of M/s Archidply Decor Ltd and the same is
continued.
The same was approved by board on May 17, 2023
In the year 2022-2023 Company has given Corporate Guarantee for availing loan facility on behalf of M/s Archidpanel
Industries Pvt Ltd, 100% Subsidiary of the Company to State Bank of India (5710 Lakhs) amount of loan is Rs. 5500.44 lakhs
as on 31.03.2025, HDFC Bank Limited (4800 Lakhs) amount of loan is Rs. 4019.71 lakhs as on 31.03.2025 and during the year
Note: - 42: Related Party
A related party transaction is a transfer of resources, services or obligations between a reporting entity and a related party,
regardless of whether a price is charged. Close members of the family of a person are those family members who may be
expected to influence, or be influenced by, that person in their dealings with the entity.
Compensation includes all employee benefits i.e. all forms of consideration paid, payable or provided by the entity, or on behalf
of the entity, in exchange for services rendered to the entity. It also includes such consideration paid on behalf of a parent of the
entity in respect of the entity. Key management personnel are those persons having authority and responsibility for planning,
directing and controlling the activities of the entity, directly or indirectly, including any director (whether executive or otherwise)
of that entity.
i) Interest income of Rs.10.16 Lakhs (P.Y. Rs. 62.16 Lakhs) on financial instrument at amortised cost.
ii) Fee on Corporate guarantee received of Rs. 1.25 lakhs (PY-77.75)
iii) Interest expense of Rs. 747.03 Lakhs (PY.Rs. 679.21 Lakhs) on borrowing and lease interest of Rs. 29.75 lakhs (P.Y Rs.
18.48 lakhs) on Financial Liabilities at amortised cost.
Note 47. Financial Risk Management-Objectives and Policies
The Company''s financial liabilities comprise long term borrowings, short term borrowings, capital creditors, trade and other
payables. The main purpose of these financial liabilities is to finance the Company''s operations. The Company''s financial assets
include trade and other receivables, cash and cash equivalents, investment in subsidiaries at cost and deposits.
The Company is exposed to market risk and credit risk. The Company has a Risk management policy and its management is
supported by a Risk management committee that advises on risks and the appropriate risk governance framework for the
Company. The audit committee provides assurance to the Company''s management that the Company''s risk activities are
governed by appropriate policies and procedures and that risks are identified, measured and managed in accordance with
the Company''s policies and risk objectives. The Board of Directors reviews and agrees policies for managing each of these risks,
which are summarised below.
(i) Market Risk
Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in
market prices. Market risk comprises risk of interest rate, currency risk and other price risk, such as commodity price risk and
equity price risk. Financial instruments affected by market risk include FVTPL investments.
a. Foreign Currency Risk
Foreign currency risk is the risk that the fair value or future cash flows of an exposure will fluctuate because of changes in
foreign exchange rates. The Company''s exposure to the risk of changes in foreign exchange rates relates primarily to the
Company''s operating activities. The Company has a treasury department which monitors the foreign exchange fluctuations
on the continuous basis and advises the management of any material adverse effect on the Company.
Foreign Currency sensitivity
The following table demonstrates the sensitivity to a reasonably possible change in foreign currency exchange rates, with all
other variables held constant. The impact on the Company''s profit before tax is due to changes in the fair value of assets and
liabilities.
b. Interest Rate Risk
Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of
changes in market interest rates.
Interest rate sensitivity
The following table demonstrates the sensitivity to a reasonably possible change in interest rates on that portion
of loans and borrowings affected. With all other variables held constant, the Company''s profit before tax is affected
through the impact on floating rate borrowings, as follows:
(ii) Credit Risks
Credit risk is the risk that counterparty will not meet its obligations under a financial instrument or customer contract, leading
to a financial loss. The Company is exposed to credit risk from its operating activities (primarily trade receivables).
The Company implements a credit risk management policy under which the Company only transacts business with
counterparties that have a certain level of credit worthiness based on internal assessment of the parties, financial condition,
historical experience, and other factors. The Company''s exposure to credit risk is influenced mainly by the individual
characteristics of each customer. The Company has established a credit policy under which each new customer is analysed
individually for creditworthiness.
Trade receivables
An impairment analysis is performed at each reporting date on an individual basis for all the customers. In addition, a large
number of minor receivables are grouped into homogenous groups and assessed for impairment collectively. The calculation
is based on credit losses historical data. The maximum exposure to credit risk at the reporting date is the carrying value of
trade receivables disclosed in Note 9 as the Company does not hold collateral as security. The Company has evaluated the
concentration of risk with respect to trade receivables as low, as its customers are located in several jurisdictions and industries.
Refer note no 9 for ageing of trade receivable as of 31st March, 2025 and 31st March, 2024.
No significant changes in estimation techniques or assumptions were made during the reporting period.
Credit risk also arises from transactions with financial institutions, and such transactions include transactions of cash and cash
equivalents, various deposits, and financial instruments such as derivative contracts. The Company manages its exposure
to this credit risk by only entering into transactions with banks that have high ratings. The Company''s treasury department
authorizes, manages, and oversees new transactions with parties with whom the Company has no previous relationship.
Furthermore, the Company limits its exposure to credit risk of financial guarantee contracts by strictly evaluating their necessity
based on internal decision making processes, such as the approval of the board of directors.
Credit risk exposure
The carrying amount of financial assets represents the Company''s maximum exposure to credit risk. The maximum exposure
to credit risk as of 31st March, 2025 and 31st March, 2024 are as follows:
(iii) Liquidity Risk
The Company''s objective is to maintain optimum levels of liquidity to meet its cash and collateral requirements at all
times. The Company relies on a mix of borrowings and excess operating cash flows to meet its needs for funds. The current
committed lines of credit are sufficient to meet its short to medium/ long term expansion needs. The Company monitors
rolling forecasts of its liquidity requirements to ensure it has sufficient cash to meet operational needs. Besides, it generally
has certain undrawn credit facilities which can be accessed as and when required; such credit facilities are reviewed at regular
intervals. Thus, no liquidity risk is perceived at present.
Note:- 48 Additional disclosures relating to the requirement of revised Schedule III
(i) No proceedings have been initiated on or are pending against the Company for holding benami property under the
Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and Rules made thereunder.
(ii) The Company has not been declared willful defaulter by any bank or financial institution or government or any government
authority.
(iii) The Company has complied with the number of layers prescribed under the Companies Act, 2013.
(iv) There is no undisclosed income under the Income Tax Act, 1961 for the year ending 31st March, 2025 and 31st March, 2024
which needs to be recorded in the books of account.
(v) The Company has not traded or invested in crypto currency or virtual currency during the current or previous year.
(vi) The borrowings obtained by the company from banks and financial institutions have been applied for the purposes for
which such loans were taken.
(vii) The below charges are pending for satisfaction which are yet to be registered with the Registrar of Companies beyond the
statutory period.
(viii) Relationship with struck off companies
There are no transactions with strike off company u/s 248 or 560 of Companies Act, 2013.
(ix) The Company has not entered into any scheme of arrangements which has an accounting impact on current or previous
financial year.
(x) Utilisation of Borrowed Fund & Share Premium:
a) The Company have not advanced or loaned or invested funds to any other person(s) or entities, including foreign
entities (Intermediaries) with the understanding that the Intermediary shall: (a) directly or indirectly lend or invest in
other personsor entities identified in any manner whatsoever by or on behalf of the company (Ultimate Beneficiaries)
or (b) provide anyguarantee, security or the like to or on behalf of the Ultimate Beneficiaries.
b) The Company have not received any fund from any person(s) or entities, including foreign entities (Funding Party)
with theunderstanding (whether recorded in writing or otherwise) that the Company shall: (a) directly or indirectly
lend or invest inother persons or entities identified in any manner whatsoever by or on behalf of the Funding Party
(Ultimate Beneficiaries)or (b) provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.
Note:- 49
Previous year''s figures have been rearranged and/or regrouped, wherever necessary.
Note:- 50
The financial statements have been approved by the Audit Committee at its meeting held on 22th May, 2025 and by the
Board of Directors on the same date.
Deen Dayal Daga Rajiv Daga AS PER OUR REPORT OF EVEN DATE
Chairman Managing Director For GRV & PK
DIN: 00497806 DIN:01412917 Chartered Accountants
Firm Reg. No. 008099S
Anil Sureka Atul Krishna Pandey
Chief Financial Officer Company Secretary Kamal Kishore
M.No.:A47815 (Partner)
Membership No. 205819
Place: Delhi UDIN: 25205819BMKUHS5724
Date : 22.05.2025
Mar 31, 2024
1. The title deeds of immovable properties are held in the name of the company, in case of land which are on long term lease from government, the lease agreement are duly executed in favor of company.
2. For details assets pledged against borrowings Refer Note No. 16 & 20
3. Company has not revalued its Property, Plant & Equipment & Intangible assets during the period ending 31st March, 2024 and also during the previous period ending 31st March, 2023.
4. Intangible asset under development is Nil (PY Nil)
5. The Company has elected to apply IND AS 116 to its leases and has recognised lease liabilities and corresponding right of use assets. In the statement of profit and loss for the year ended, depreciation expenses on right of use assets and finance cost for interest accrued on such lease liability has been recognized.
6. For details of Lease Liabilities Refer Note No. 17 & 21
7. Company has not revalued its Right -to- use assets during the period ending 31st March, 2024.
8. During the year ended March 31,2024, certain assets which were old and have no realisable value having Net book value of Rs.0.51 Lakhs/-(PY Rs. Rs.1.99 Lakhs/-) (Gross book value of Rs. 6.46 Lakhs/-(PY Rs. 17.35 Lakhs/-)) were retired and shown as impairement loss in the books.
c. The Company has only one class of equity shares having a par value of Rs.10 per share, Each Shareholder is eligible for one vote per share. In the event of liquidation, the equity shareholders are eligible to receive the remaining assets of the Company after distribution of all preferential amounts, in proportion to their shareholding. However, no such preferencial amounts exist currently.
e. Equity shares movement during the 5 years preceding March 31, 2024 Equity shares extinguished on buy-back
In the Financial Year 2020-2021, the Company has Bought back its 22,00,000 equity shares @Rs.37/- per share amounting to Rs. 8.14 Crores being 9.97% of the total equity share. The equity shares bought back were extinguished on March 17, 2021.
The Company does not have any Holding/ Ultimate Holding Company. As such, no shares are held by them or their Subsidiaries/ Associates.
There are NIL ( Previous year NIL) shares reserved for issue under option and contracts/commitment for the sale of shares/ disinvestment.
Share Premium This Share Premium had been created on issue of shares by way of public issue and right issue.
Capital Subsidy :- Subsidy received in the Fincancial year 2011-12 towards setting up of the Laminates division.
Capital Redemption Reserve:- This reserve was created upon buy back of equity shares in FY 2020-21 Retained Earnings: Amount of retained earnings represents accumulated profit and losses of the Company as on reporting date.Such profits and losses are after adjustment of payment of dividend, transfer to any reserves as statutorily required and adjustment for remeasurement gain loss on defined benefit plan.
Lease liability is initially measured at the present value of future lease payments. Lease payments are discounted using the interest rate implicit in the lease or, if not readily determinable, using the incremental borrowing rate. Lease liability is subsequently remeasured by increasing the carrying amount to reflect interest on the lease liability and reducing the carrying amount to reflect the lease payments made. A lease liability is remeasured upon the occurrence of certain events such as a change in the lease term or a change in an index or rate used to determine lease payments. The remeasurement normally also adjusts the leased assets.
Note: - 37 : Segment Reporting
The Company has identified and rearranged there segments on the basis of production and sales of product in line with IND AS 108 "Operating Segments" against earlier years segment as wood based and paper based,reporting taking into account organizational structure as were as differential risk and return of these segments.
Details of the Products included in each segment are as under:
i) Wood based products: Plywood & Allied Products
ii) Wood based products: Medium Density Fibre Board (MDF).
iii) Paper based products: Laminate & Allied Products
The segment information has been prepared in conformity with the Accounting Policies for preparing and presenting the financial statements of the Company.
Segment revenue and results includes manufacturing as well as trading activities for the same segment product. Segment current assets and liabilities are taken on the basis of the turnover of the segment.
The following table presents the information relating to profit, assets and liabilities of the operating segment. (Primary Segment) of the Company.
The Unallocated Segment includes general corporate income and expense items, which are not allocated to any business segment.
Note: - 39 Corporate social responsibility (CSR) Activity
CSR amount required to be spent as per section 135 of the Companies Act, 2013 read with Schedule VII thereof by the company during the year is Rs 21.87 Lakhs (Previous year Rs.15.19 Lakhs) based on Average profit of last 3 years i.e. Rs. 1093.74 Lakhs (Previous year Rs. 759.47 Lakhs).
During the year, the company has fulfilled its Corporate Social Responsibility by spending Rs. 22.00 Lakhs (P.Y. Rs. 16.10 Lakhs) towards corporate social responsibility (CSR) under Section 135 of the Companies Act, 2013 and rules thereon by way of contribution to Institution for Promoting Education, including special education and employment enhancing vocational skills especially among children, women, elderly and the differently abled and livelihood enhancement projects. (Previous year to Trust for Education Activity).
Note: - 40 Earning Per Share:
Basic earnings (loss) per share are calculated by dividing the net profit or loss for the period attributable to equity shareholders by the weighted average number of equity shares outstanding during the period.
Note: - 41 Disclosures Pursuant To Securities And Exchange Board Of India (Listing Obligations And Disclosure Requirements) Regulations, 2015 And Section 186 Of The Companies Act, 2013
Details of investments made have been given as part of Note ''3'' Investments in Subsidiary.
In the year 2021-2022 Company has given Corporate Guarantee for availing a loan facility on behalf of M/s Archidply Decor Ltd related concern of the Company to State Bank of India (1000 Lakhs) transferred to Kotak Mahindra Bank in F.Y 2022-2023 and HDFC Bank Limited (1500 Lakhs) for the credit facilities granted by them for the purpose of principal business activity of M/s Archidply Decor Ltd.
The same was approved by board on August 11,2021
In the year 2022-2023 Company has given Corporate Guarantee for availing loan facility on behalf of M/s Archidpanel Industries Pvt Ltd, 100% Subsidiary of the Company to State Bank of India (4230 Lakhs) and HDFC Bank Limited (4800 Lakhs) for the credit facilities granted by them for the purpose of Project Cost for setting up of MDF plant of M/s Archidpanel Industries Pvt Ltd
The same was approved by board on August 09, 2022
A related party transaction is a transfer of resources, services or obligations between a reporting entity and a related party, regardless of whether a price is charged. Close members of the family of a person are those family members who may be expected to influence, or be influenced by, that person in their dealings with the entity.
Compensation includes all employee benefits i.e. all forms of consideration paid, payable or provided by the entity, or on behalf of the entity, in exchange for services rendered to the entity. It also includes such consideration paid on behalf of a parent of the entity in respect of the entity. Key management personnel are those persons having authority and responsibility for planning, directing and controlling the activities of the entity, directly or indirectly, including any director (whether executive or otherwise) of that entity.
Terms and conditions of transactions with related parties
1. The sales to/ purchases from/ services availed from/ services provided to related parties are made on terms equivalent to those that prevail in arm''s length transactions.
2. Outstanding balances at the year-end from related parties are unsecured and interest free
3. The above Remuneration is exclusive of Leave Encashment and Gratuity as the same is provided on Actuarial Valuation done for company as a whole.
Note: - 43 Unclaimed shares
The disclosure in accordance with the requirement of Regulation 34(3) and Part F of Schedule V of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 with respect to demat suspense account / unclaimed suspense account are as follows:
The Company''s financial liabilities comprise long term borrowings, short term borrowings, capital creditors, trade and other payables. The main purpose of these financial liabilities is to finance the Company''s operations. The Company''s financial assets include trade and other receivables, cash and cash equivalents, investment in subsidiaries at cost and deposits.
The Company is exposed to market risk and credit risk. The Company has a Risk management policy and its management is supported by a Risk management committee that advises on risks and the appropriate risk governance framework for the Company. The audit committee provides assurance to the Company''s management that the Company''s risk activities are governed by appropriate policies and procedures and that risks are identified, measured and managed in accordance with the Company''s policies and risk objectives. The Board of Directors reviews and agrees policies for managing each of these risks, which are summarised below.
(i) Market Risk
Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk comprises risk of interest rate, currency risk and other price risk, such as commodity price risk and equity price risk. Financial instruments affected by market risk include FVTPL investments.
a. Foreign Currency Risk
Foreign currency risk is the risk that the fair value or future cash flows of an exposure will fluctuate because of changes in foreign exchange rates. The Company''s exposure to the risk of changes in foreign exchange rates relates primarily to the Company''s operating activities. The Company has a treasury department which monitors the foreign exchange fluctuations on the continuous basis and advises the management of any material adverse effect on the Company.
Foreign Currency sensitivity
The following table demonstrates the sensitivity to a reasonably possible change in foreign currency exchange rates, with all other variables held constant. The impact on the Company''s profit before tax is due to changes in the fair value of assets and liabilities.
b. Interest Rate Risk
Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates.
Interest rate sensitivity
The following table demonstrates the sensitivity to a reasonably possible change in interest rates on that portion of loans and borrowings affected. With all other variables held constant, the Company''s profit before tax is affected through the impact on floating rate borrowings, as follows:
(ii) Credit Risks
Credit risk is the risk that counterparty will not meet its obligations under a financial instrument or customer contract, leading to a financial loss. The Company is exposed to credit risk from its operating activities (primarily trade receivables).
The Company implements a credit risk management policy under which the Company only transacts business with counterparties that have a certain level of credit worthiness based on internal assessment of the parties, financial condition, historical experience, and other factors. The Company''s exposure to credit risk is influenced mainly by the individual characteristics of each customer. The Company has established a credit policy under which each new customer is analysed individually for creditworthiness.
Trade receivables
An impairment analysis is performed at each reporting date on an individual basis for all the customers. In addition, a large number of minor receivables are grouped into homogenous groups and assessed for impairment collectively. The calculation is based on credit losses historical data. The maximum exposure to credit risk at the reporting date is the carrying value of trade receivables disclosed in Note 9 as the Company does not hold collateral as security. The Company has evaluated the concentration of risk with respect to trade receivables as low, as its customers are located in several jurisdictions and industries.
Refer note no 9 for ageing of trade receivable as of 31st March, 2024 and 31st March, 2023.
No significant changes in estimation techniques or assumptions were made during the reporting period.
Credit risk also arises from transactions with financial institutions, and such transactions include transactions of cash and cash equivalents, various deposits, and financial instruments such as derivative contracts. The Company manages its exposure to this credit risk by only entering into transactions with banks that have high ratings. The Company''s treasury department authorizes, manages, and oversees new transactions with parties with whom the Company has no previous relationship.
Furthermore, the Company limits its exposure to credit risk of financial guarantee contracts by strictly evaluating their necessity based on internal decision making processes, such as the approval of the board of directors.
(iii) Liquidity Risk
The Company''s objective is to maintain optimum levels of liquidity to meet its cash and collateral requirements at all times. The Company relies on a mix of borrowings and excess operating cash flows to meet its needs for funds. The current committed lines of credit are sufficient to meet its short to medium/ long term expansion needs. The Company monitors rolling forecasts of its liquidity requirements to ensure it has sufficient cash to meet operational needs. Besides, it generally has certain undrawn credit facilities which can be accessed as and when required; such credit facilities are reviewed at regular intervals. Thus, no liquidity risk is perceived at present.
Note:- 48 Additional disclosures relating to the requirement of revised Schedule III
(i) No proceedings have been initiated on or are pending against the Company for holding benami property under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and Rules made thereunder.
(ii) The Company has not been declared willful defaulter by any bank or financial institution or government or any government authority.
(iii) The Company has complied with the number of layers prescribed under the Companies Act, 2013.
(iv) There is no undisclosed income under the Income Tax Act, 1961 for the year ending 31st March, 2024 and 31st March, 2023 which needs to be recorded in the books of account.
(v) The Company has not traded or invested in crypto currency or virtual currency during the current or previous year.
(vi) The borrowings obtained by the company from banks and financial institutions have been applied for the purposes for which such loans were taken.
(viii) Relationship with struck off companies
There are no transactions with strike off company u/s 248 or 560 of Companies Act, 2013.
(ix) The Company has not entered into any scheme of arrangements which has an accounting impact on current or previous financial year.
(x) Utilisation of Borrowed Fund & Share Premium:
a) The Company have not advanced or loaned or invested funds to any other person(s) or entities, including foreign entities (Intermediaries) with the understanding that the Intermediary shall: (a) directly or indirectly lend or invest in other personsor entities identified in any manner whatsoever by or on behalf of the company (Ultimate Beneficiaries) or (b) provide anyguarantee, security or the like to or on behalf of the Ultimate Beneficiaries.
b) The Company have not received any fund from any person(s) or entities, including foreign entities (Funding Party) with theunderstanding (whether recorded in writing or otherwise) that the Company shall: (a) directly or indirectly lend or invest inother persons or entities identified in any manner whatsoever by or on behalf of the Funding Party (Ultimate Beneficiaries)or (b) provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.
Note:- 49
Previous year''s figures have been rearranged and/or regrouped, wherever necessary.
Note:- 50
The financial statements have been approved by the Audit Committee at its meeting held on 20th May, 2024 and by the Board of Directors on the same date.
Mar 31, 2023
1. The title deeds of immovable properties are held in the name of the company, in case of land which are on long term lease from government, the lease agreement are duly executed in favor of company.
2. For details assets pledged against borrowings Refer Note No. 15 & 18
3. Company has not revalued its Property, Plant & Equipment & Intangible assets during the period ending 31st March, 2023 and also during the previous period ending 31st March, 2022.
4. Intangible asset under development is Nil (PY Nil)
5. During the year ended March 31, 2023, certain assets which were old and have no realisable value having Net book value of B 1.99 Lakhs/-(PY BB24.28 Lakhs/-) (Gross book value of B 17.35 Lakhs/-(PY B314.30 Lakhs/-)) were retired and shown as impairement loss in the books.
The Company has only one class of equity shares having a par value of D10 per share, Each Shareholder is eligible for one vote per share. In the event of liquidation, the equity shareholders are eligible to receive the remaining assets of the Company after distribution of all preferential amounts, in proportion to their shareholding. However, no such preferencial amounts exist currently.
Equity shares movement during the 5 years preceding March 31, 2023 Equity shares extinguished on buy-back
In the Financial Year 2020-2021, the Company has Bought back its 22,00,000 equity shares @B37/- per share amounting to B8.14 Crores being 9.97% of the total equity share. The equity shares bought back were extinguished on March 17, 2021. The Company does not have any Holding/ Ultimate Holding Company. As such, no shares are held by them or their Subsidiaries/ Associates.
There are NIL ( Previous year NIL) shares reserved for issue under option and contracts/commitment for the sale of shares/ disinvestment.
Share Premium This Share Premium had been created on issue of shares by way of public issue and right issue.
Capital Subsidy :- Subsidy received in the Fincancial year 2011-12 towards setting up of the Laminates division.
Capital Redemption Reserve:- This reserve was created upon buy back of equity shares in FY 2020-21 Retained Earnings: Amount of retained earnings represents accumulated profit and losses of the Company as on reporting date.Such profits and losses are after adjustment of payment of dividend, transfer to any reserves as statutorily required and adjustment for remeasurement gain loss on defined benefit plan.
During the year Asset related government grant received on Plant & Machinery and the same has been accounted for as deferred revenue and depreciation withdrawn proportionately recognised in Statement of Profit and Loss.
( *Working capital loan from SBI Bank of B4000 Lakhs is secured by 1st Pari Passu charge on entire current assets Stock and book debts of the company both present and future and collateral charge 1st Pari Passu on fixed assets both present and future of the company and personal guarantee of promoter directors.)
( #Working capital loan from HDFC Bank of B3000 Lakhs is Secured by 1st Pari Passu charge on entire Current assets of the company both present and future and collateral security 1st Pari Passu on fixed assets both present and future of the company and personal guarantee of 2 Promoter Directors.)
The Company has identified two segments viz a) Wood based product b) Paper based product, which have been identified in line with IND AS 108 on Operating segment reporting taking into account organizational structure as were as differential risk and return of these segments.
Details of the Products included in each segment are as under:
i) Wood based products: Plywood, Block Board
ii) Paper based products: Laminated Sheets (HPL).
The segment information has been prepared in conformity with the Accounting Policies for preparing and presenting the financial statements of the Company.
Segment revenue and results includes manufacturing as well as trading activities for the same segment product. Segment current assets and liabilities are taken on the basis of the turnover of the segment.
The following table presents the information relating to profit, assets and liabilities of the operating segment. (Primary Segment) of the Company.
Note: - 38 Corporate social responsibility (CSR) Activity
CSR amount required to be spent as per section 135 of the companies Act, 2013 read with Schedule VII thereof by the company during the year is Rs 15.19 Lakhs (Previous year B 13.02 Lakhs) based on Average profit of last 3 years i.e. 2759.47 Lakhs (Previous year 2651.08 Lakhs).
During the year, the company has fulfilled its Corporate Social Responsibility by spending 216.10 Lakhs (P.Y. 213.22 Lakhs) towards corporate social responsibility (CSR) under Section 135 of the Companies Act, 2013 and rules thereon by way of contribution to Trust for Education Activity (Previous year towards Foundation for schools project advance based technology).
Basic earnings (loss) per share are calculated by dividing the net profit or loss for the period attributable to equity shareholders by the weighted average number of equity shares outstanding during the period.
In the year 2021-2022 Company has given Corporate Guarantee for availing a loan facility on behalf of M/s Archidply Decor Ltd related concern of the Company to State Bank of India (1000 Lakhs) and HDFC Bank Limited (1500 Lakhs) for the credit facilities granted by them for the purpose of principal business activity of M/s Archidply Decor Ltd. Credit Facility has been transferred by Archidply Decor from State bank of India to Kotak Bank during the year therefore Corporate Guarantee has also changed from SBI to Kotak bank.
The same was approved by board on August 11,2021
During the year 2022-2023 Company has given one more Corporate Guarantee for availing loan facility on behalf of M/s Archidpanel Industries Pvt Ltd, 100% Subsidiary of the Company to State Bank of India (4230 Lakhs) and HDFC Bank Limited (4800 Lakhs) for the credit facilities granted by them for the purpose of Project Cost for setting up of MDF plant of M/s Archidpanel Industries Pvt Ltd
The same was approved by board on August 09, 2022 Note: - 41: Related Party
A related party transaction is a transfer of resources, services or obligations between a reporting entity and a related party, regardless of whether a price is charged. Close members of the family of a person are those family members who may be expected to influence, or be influenced by, that person in their dealings with the entity.
Compensation includes all employee benefits i.e. all forms of consideration paid, payable or provided by the entity, or on behalf of the entity, in exchange for services rendered to the entity. It also includes such consideration paid on behalf of a parent of the entity in respect of the entity. Key management personnel are those persons having authority and responsibility for planning, directing and controlling the activities of the entity, directly or indirectly, including any director (whether executive or otherwise) of that entity.
Notes:-
1. The carrying amount of financial assets and financial liabilities measured at amortised cost in the financial statements are a reasonable approximation of their fair values since the Company does not anticipate that the carrying amounts would be significantly different from the values that would eventually be received or settled.
2. Investment in subsidiaries are being carried at cost hence not reported.
3. Finance income and finance cost by instrument category wise classification :-
i) Interest income of 37.86 Lakhs (P.Y. 39.45 Lakhs) on financial instrument at amortised cost.
ii) Interest expense of 3510.22 Lakhs (PY.3386.75 Lakhs) on borrowing at amortised cost.
Note 46. Financial Risk Management-Objectives and Policies
The Company''s financial liabilities comprise long term borrowings, short term borrowings, capital creditors, trade and other payables. The main purpose of these financial liabilities is to finance the Company''s operations. The Company''s financial assets include trade and other receivables, cash and cash equivalents, investment in subsidiaries at cost and deposits.
The Company is exposed to market risk and credit risk. The Company has a Risk management policy and its management is supported by a Risk management commitatee that advises on risks and the appropriate risk governance framework for the Company. The audit committee provides assurance to the Company''s management that the Company''s risk activities are governed by appropriate policies and procedures and that risks are identified, measured and managed in accordance with the Company''s policies and risk objectives. The Board of Directors reviews and agrees policies for managing each of these risks, which are summarised below.
(i) Market Risk
Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk comprises risk of interest rate, currency risk and other price risk, such as commodity price risk and equity price risk. Financial instruments affected by market risk include FVTPL investments.
a. Foreign Currency Risk
Foreign currency risk is the risk that the fair value or future cash flows of an exposure will fluctuate because of changes in foreign exchange rates. The Company''s exposure to the risk of changes in foreign exchange rates relates primarily to the Company''s operating activities. The Company has a treasury department which monitors the foreign exchange fluctuations on the continuous basis and advises the management of any material adverse effect on the Company.
Foreign Currency sensitivity
The following table demonstrates the sensitivity to a reasonably possible change in foreign currency exchange rates, with all other variables held constant. The impact on the Company''s profit before tax is due to changes in the fair value of assets and liabilities.
b. Interest Rate Risk
Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates.
Interest rate sensitivity
The following table demonstrates the sensitivity to a reasonably possible change in interest rates on that portion of loans and borrowings affected. With all other variables held constant, the Company''s profit before tax is affected through the impact on floating rate borrowings, as follows:
(ii) Credit Risks
Credit risk is the risk that counterparty will not meet its obligations under a financial instrument or customer contract, leading to a financial loss. The Company is exposed to credit risk from its operating activities (primarily trade receivables).
The Company implements a credit risk management policy under which the Company only transacts business with counterparties that have a certain level of credit worthiness based on internal assessment of the parties, financial condition, historical experience, and other factors. The Company''s exposure to credit risk is influenced mainly by the individual characteristics of each customer. The Company has established a credit policy under which each new customer is analysed individually for creditworthiness.
Trade receivables
An impairment analysis is performed at each reporting date on an individual basis for all the customers. In addition, a large number of minor receivables are grouped into homogenous groups and assessed for impairment collectively. The calculation is based on credit losses historical data. The maximum exposure to credit risk at the reporting date is the carrying value of trade receivables disclosed in Note 9 as the Company does not hold collateral as security. The Company has evaluated the concentration of risk with respect to trade receivables as low, as its customers are located in several jurisdictions and industries.
Refer note no 9 for ageing of trade receivable as of 31st March, 2023 and 31st March, 2022.
No significant changes in estimation techniques or assumptions were made during the reporting period.
Credit risk also arises from transactions with financial institutions, and such transactions include transactions of cash and cash equivalents, various deposits, and financial instruments such as derivative contracts. The Company manages its exposure to this credit risk by only entering into transactions with banks that have high ratings. The Company''s treasury department authorizes, manages, and oversees new transactions with parties with whom the Company has no previous relationship.
Furthermore, the Company limits its exposure to credit risk of financial guarantee contracts by strictly evaluating their necessity based on internal decision making processes, such as the approval of the board of directors.
(iii) Liquidity Risk
The Company''s objective is to maintain optimum levels of liquidity to meet its cash and collateral requirements at all times. The Company relies on a mix of borrowings and excess operating cash flows to meet its needs for funds. The current committed lines of credit are sufficient to meet its short to medium/ long term expansion needs. The Company monitors rolling forecasts of its liquidity requirements to ensure it has sufficient cash to meet operational needs. Besides, it generally has certain undrawn credit facilities which can be accessed as and when required; such credit facilities are reviewed at regular intervals. Thus, no liquidity risk is perceived at present.
Note:- 47 Additional disclosures relating to the requirement of revised Schedule III
(i) No proceedings have been initiated on or are pending against the Company for holding benami property under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and Rules made thereunder.
(ii) The Company has not been declared willful defaulter by any bank or financial institution or government or any government authority.
(iii) The Company has complied with the number of layers prescribed under the Companies Act, 2013.
(iv) There is no undisclosed income under the Income Tax Act, 1961 for the year ending 31st March, 2023 and 31st March, 2022which needs to be recorded in the books of account.
(v) The Company has not traded or invested in crypto currency or virtual currency during the current or previous year.
(vi) The borrowings obtained by the company from banks and financial institutions have been applied for the purposes for which such loans were taken.
(vii) The below charges are pending for satisfaction which are yet to be registered with the Registrar of Companies beyond the statutory period.
(viii) Relationship with struck off companies:
There are no transactions with strike off company u/s 248 or 560 of Companies Act, 2013.
(ix) The Company has not entered into any scheme of arrangements which has an accounting impact on current or previous financial year.
(x) Utilisation of Borrowed Fund & Share Premium:
a) The Company have not advanced or loaned or invested funds to any other person(s) or entities, including foreign entities(Intermediaries) with the understanding that the Intermediary shall: (a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the company (Ultimate Beneficiaries) or (b) provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries.
b) The Company have not received any fund from any person(s) or entities, including foreign entities (Funding Party) with the understanding (whether recorded in writing or otherwise) that the Company shall: (a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party (Ultimate Beneficiaries) or (b) provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.
Previous year''s figures have been rearranged and/or regrouped, wherever necessary.
The financial statements have been approved by the Audit Committee at its meeting held on 17th May, 2023 and by the Board of Directors on the same date.
Mar 31, 2018
17 Accounting for Taxes on Income:
Tax expenses comprise of current tax and deferred tax including applicable surcharge and cess.
Current Income taxcomputed using the tax effect accounting method, where taxes are accrued in the same period in which the related revenue and expenses arise. A provision is made for income tax annually, based on the tax liability computed, after considering tax allowances and exemptions. Provisions are recorded when it is estimated that a liability due to disallowances or other matters is probable.
Deferred tax is provided using the balance sheet approach on temporary differences at the reporting date between the tax bases of assets and liabilities and their carrying amounts for financial reporting purposes at the reporting date. Deferred tax liabilities are recognized for all taxable temporary differences. Deferred tax assets are recognized for all deductible temporary differences, the carry forward of unused tax credits and any unused tax losses. Deferred tax assets are recognized to the extent that it is probable that taxable profits against which the deductible temporary differences, and the carry forward unused tax credits and unused tax losses can be utilized.
Deferred tax is recognized in the statement of profit and loss, except to the extent that it relates to items recognized in other comprehensive income. As such, deferred tax is also recognized in other comprehensive income.
Deferred Tax Assets and Deferred Tax Liabilities are offset, if a legally enforceable right exists to set off current tax assets against current tax liabilities and the Deferred Tax Assets and Deferred Tax Liabilities relate to taxes on income levied by same governing taxation laws.
2. Contingent Liabilities & Contingent Assets:
Contingent liabilities are not provided for but are disclosed by way of Notes on Accounts. Contingent liabilities is disclosed in case of a present obligation from past events
(a) when it is not probable that an outflow of resources will be required to settle the obligation;
(b) when no reliable estimate is possible;
(c) unless the probability of outflow of resources is remote.
Provisions are made when
(a) the Company has a present legal or constructive obligation as a result of past events;
(b) it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation; and
3. Employee Benefits:
Short-term employee benefits are recognized as an expense at the undiscounted amount in the Statement of Profit and Loss of the year in which the related service is rendered.
Post-Employment and Retirement benefits in the form of Gratuity and Leave Encashment are considered as defined benefit obligations and is provided for on the basis of third party actuarial valuation, using the projected unit credit method, as at the date of the Balance Sheet. Every Employee who has completed five years or more of service is entitled to Gratuity on terms not less favorable than the provisions of The Payment of Gratuity Act, 1972.
The present value of the defined benefit obligation is determined by discounting the estimated future cash outflows by reference to market yields at the end of reporting period on government bonds that have terms approximating to the terms of the related obligation
Re-measurement gains and losses arising from experience adjustments and changes in actuarial assumptions of the defined benefit obligation are recognized in the period in which they occur, directly in other comprehensive income. They are included in retained earnings in the statement of changes in equity and in the balance sheet.
Employee benefits in the form of Provident Fund is considered as defined contribution plan and the contributions to Employees'' Provident Fund Organization established under The Employees'' Provident Fund and Miscellaneous Provisions Act 1952 is charged to the Statement of Profit and Loss of the year when the contributions to the respective funds are due. The Company pays provident fund contributions to publicly administered provident funds as per local regulations.
The Company has no further payment obligations once the contributions have been paid.
4. Borrowing Costs:
Borrowing costs are interest and other costs (including exchange differences relating to foreign currency borrowings to the extent that they are regarded as an adjustment to interest costs) incurred in connection with the borrowing of funds.
General and specific borrowing costs that are directly attributable to the acquisition or construction of qualifying assets are capitalized as part of the cost of such assets during the period of time that is required to complete and prepare the asset for its intended use. A qualifying asset is one that takes necessarily substantial period of time to get ready for its intended use.
All other borrowing costs are expensed in the period in which they are incurred.
(d) Cash and cash equivalent unless restricted from being exchanged or used to settle a liability for at least twelve months after the reporting period. All other assets are classified as non-current.
A liability is current when
(a) it is expected to be settled in normal operating cycle
(b) it is held primarily for the purpose of trading
(c) it is due to be discharged within twelve months after the reporting period
(d) there is no unconditional right to defer the settlement of the liability for at least twelve months after the reporting period. All other liabilities are classified as non-current.
(c) a reliable estimate is made of the amount of the obligation.
Contingent assets are neither accounted for nor disclosed by way of Notes on Accounts where the inflow of economic benefits is probable.
5. Current And Non- Current Classification:
The Normal Operating Cycle for the Company has been assumed to be of twelve months for classification of its various assets and liabilities into "Current" and "Non-Current".
The Company presents assets and liabilities in the balance sheet based on current and non-current classification.
An asset is current when it is
(a) expected to be realized or intended to be sold or consumed in normal operating cycle
(b) held primarily for the purpose of trading
(c) expected to be realized within twelve months after the reporting period
II. NOTES ON ACCOUNTS Note: - 36 :- Corporate social responsibility (CSR) Activity
In case of CSR activities undertaken by the Company, if any expenditure of revenue nature is incurred or an irrevocable contribution is made to any agency to be spent by the latter on any of the activities mentioned in Schedule VII to the Companies Act, 2013, the same is charged as an expense to its Statement of Profit and Loss.
During the year, the company has spent Rs.24,50,720/- (P.Y. 67,725/-) towards corporate social responsibility (CSR) under Section 135 of the Companies Act, 2013 and rules thereon by way of contribution to schools for their development.
Note: - 6 Earning Per Share:
Basic earnings (loss) per share are calculated by dividing the net profit or loss for the period attributable to equity shareholders by the weighted average number of equity shares outstanding during the period.
Note: - 7 : Segment Reporting
The Company has identified two segments viz a) Wood based product b) Paper based product, which have been identified in line with IND AS 108 on Operating segment reporting taking into account organizational structure as were as differential risk and return of these segments.
Details of the Products included in each segment are as under:
i) Wood based products: Plywood, Block Board, Veneers, Decorative plywood, Prelaminated Partical Boards, Furniture and polish work.
ii) Paper based products: Laminated Sheets (HPL).
The segment information has been prepared in conformity with the Accounting Policies for preparing and presenting the financial statements of the Company.
Segment revenue and results includes manufacturing as well as trading activities for the same segment product. Segment current assets and liabilities are taken on the basis of the turnover of the segment.
Secondary Segment Reporting:
The Company has no reportable secondary segment.
Note: - 8: Related Party
A related party transaction is a transfer of resources, services or obligations between a reporting entity and a related party, regardless of whether a price is charged. Close members of the family of a person are those family members who may be expected to influence, or be influenced by, that person in their dealings with the entity. Compensation includes all employee benefits i.e. all forms of consideration paid, payable or provided by the entity, or on behalf of the entity, in exchange for services rendered to the entity. It also includes such consideration paid on behalf of a parent of the entity in respect of the entity. Key management personnel are those persons having authority and responsibility for planning, directing and controlling the activities of the entity, directly or indirectly, including any director (whether executive or otherwise) of that entity.
Disclosure as per Ind AS 24 "Related Party Disclosures" Issued by the Institute of Chartered Accountants of India is as follows:
Companies with significant influence:
I) The Mysore Chip Boards Ltd
ii) Assam Timber Products Pvt Ltd
iii) Shree Shyam Tea Pvt Ltd
iv) Bordhumsa Tea Company Pvt Ltd
v) Vanraj Suppliers Pvt Ltd
vi) Ravi Marketing Services Pvt Ltd
vii) Wartayar Veneer Industries Ltd
viii) Archidply Decor Ltd.
Key Management Personnel:
i) Mr. Deendayal Daga - Chairman
ii) Mr. Shyam Daga - Executive Director
iii) Mr. Rajiv Daga - Managing Director
#Amount receivable from Wartayar Veneer Industries Pvt. Ltd. amounting to Rs 1,22,65,724/- has been written off during the year as the net worth of the said company has eroded completely and the company believes the same cannot be realized from the party.
Note: - 10 UNCLAIMED SHARES
In terms of Clause 5A of the Listing Agreement with the Stock Exchange, the Company has opened the demat suspense account and has transferred the 4425 unclaimed shares of public issue to "Archidply Industries Limited Unclaimed Shares Suspense Account." The Voting rights on these shares will remain frozen till the rightful owner claims the shares.
There was no Unclaimed Dividend (P.Y. NIL) and Unclaimed Share Application money (P.Y. NIL) that need to be transferred to Investor Education and Protection Fund during the year.
Note: - 11 Micro, Small Or Medium Enterprises
The process of identifying the suppliers who fall within the Micro, Small & Medium Enterprises Development Act 2006 has been initiated. In the absence of information, company is unable to provide information regarding principal amount outstanding & interest due thereon remaining unpaid to any supplier & other details under the Micro, Small & Medium Enterprises Development Act 2006 as at 31-03-2018.
Mar 31, 2015
1. The Company has only one class of equity shares having a par value
of 10 per share, Each Shareholder is eligible for one vote per share.
2. 65000 Equity shares of Rs. 10/- each alloted under ESOP Scheme in
last Five years.
Term of repayment and nature of Security for long term secured
borrowings :
i) Term Loan amounting of 39,840,000/- (March 31,2014: 53,120,000/-) is
secured by first charge on all immovable properties of the Company
present and future and hypothecation of Rudrapur Unit of all assets both
present and future of unit and personal guarantee of promotor directors
and repayable in 20 quarterly installments starting from June 2013 last
installment due on March 2018.
ii) Term Loan amounting 74,46,368 (March 31,2014: Rs. 1,82,44,942/-) is
secured by first charge on all immovable properties of Chintamani unit
of the Company present and future and hypothecation of all assets both
present and future of Chintamani unit and personal guarantee of
promoter directors and repayable in 56 monthly installments starting
from August 2012 last installment due on December 2015. Out of which
NIL (P.Y Rs. 1,82,44,937/-) is in Foreign Currency.
iii) Term Loan amounting 4,00,01,620 (March 31,2014: Rs. 7,55,87,866/-)
is secured by first charge on all immovable properties of Chintamani
unit of the Company present and future and hypothecation of all assets
both present and future of Chintamani unit and personal guarantee of
promotor directors and repayable in 50 monthly installments starting
from August 2012 last installment due on September 2016. Out of this
NIL (P.Y- Rs. 7,55,67,556/-) is in Foreign Currency.
iv) Vehicle Loans are secured by hypothecation of vehicles purchased
under the Hire Purchase Schemes.
v) Installments falling due in respect of all the above loans up to
31.3.2015 have been grouped under "Current maturities of Long Term
Debt" (Refer note 7)
3. CONTINGENT LIABILITIES AND COMMITMENTS As at 31st As at31ST
(TO THE EXTEND March March
NOT PRoVIDED FoR) 2015 2014
1) Contingent Liabilities
A) On account of De merger of Plywood &
Block Board and Particle & laminated board
(both divisions) of The Mysore Chip Boards
Limited in to the Company in the financial
year 2007-08:
i) Various parties had filed a civil suit
for recovery of dues/ damages against The
Mysore Chip Boards Limited, which has been
disputed by The Mysore Chip Boards Limited
and had deposited an amount of 11,46,419/-
(P.Y.11,46,419) with Hon'ble High Court of
Gujarat. The said amount of Rs. 11,46,419/-
(P.Y Rs. 11,46,419) 1,228,606 1,228,606
ii) The Company, for and on behalf of
The Mysore Chip Boards Limited has given a
guarantee towards a show cause notice
issued by the Excise Department demanding
a dues from The Mysore Chip Boards Limited.
However The Mysore Chip Boards Limited had
deposited an amount of 16,00,000/-( P.Y.
16,00,000/) with Central Excise Department.
The Mysore Chip Boards Limited had filed
an appeal & disputed the said demand and
the demand has been reduced to Rs. 81,01,637/-
(P.Y. Rs. 81,01,637/) and the penalty of the
same amount by Commissioner of Central Excise,
Mysore on 05/10/2006. The Mysore Chip Board Ltd
has filed an appeal to Custom, Excise & Service
Tax Appellate Tribunal, Bangalore and obtained a
stay order against that demand. The tribunal has
remanded back the case to the Commissioner of
Central Excise for taking fresh decision after
following the principles of natural justice.
The Department has filed the appeal before the
Honourable Supreme Court
against the order of the Tribunal. 8,101,637 8,101,637
B) (i) The Company has received show
cause notice issued by the Excise Department,
Commissionate Meerut -II demanding
Rs. 4,41,92,921/- for period from April 2006
to december 2010 ,Rs. 2,00,10,661/- for period
from Jan 2011 to March 2012 , company
has got stay order from Appallete Tribunal
against these demand for production of resin at
its rudrapur unit which company is using
for its production. 64,203,582 64,203,582
(ii) The company has received demand notice
for Rs 1,86,18,471/- for the period from April
2012 to December 2012 and same reason as
mentioned in B(ii) above and the case is
pending in Appellete Tribunal-Delhi 18,618,471 6,585,437
(iii) The company has received another
demand of Rs. 39,57,322/-from the same
authority for the period from January
2013 to February 2013 and the case is
pending before commissioner
Central Excise Appeal-I -Meerut. 3,957,322 -
C) The Deputy Commissioner of sales
tax Rudrapur has demanded Rs. 4998317/-
related to financial year 2007-08 and
Rs. 136687/- related to financial year
2006-07 and interest on above amount
till date. The Company has deposited
Rs. 1157615/- and filed appeal with Joint
Commissioner Appeal -I, Sales Tax
Uttarchand against same demand. 5,135,004 5,135,004
D) The Company has filed appeal with
the Tribunal against the order of the
Commissioner for the availment and
utilization of irregular cenvat credit
taken on capital expenditure at Chintamani
Unit amounting to Rs. 43,03,304/- for
the financial year 2011-12. The Company has
reversed the amount of Rs. 30,45,832/- and
charged it to profit & losss account. The
credit of an amount of Rs. 12,57,472
is under litigation. 1,257,472 1,257,472
E) The Company has imported plant
and machinery under EPCG Scheme on
which it has availed Duty benefit 13,727,264 25,863,067
F) Raw material under Advance Licence
scheme and availed a duty benefit 2,404,688 -
G) The Company has undertaken Domestic
factoring facility for its trade debtors
from financial institutions. 80,320,292 89,647,078
H) Guarantees given by the bank on
behalf of the Company 16,325,147 16,325,147
1) During the year Company has
received notice from State of
Uttarakhand for Mandi Tax levied on
the purchase of materials outside
the state. However Company has filed
a writ petition in the Honorable
High Court of Uttarakhand against
the notice. As per calculation by
company a Contingent liability of
Rs.19,05,256/- is arising on account
of this notice. 1,905,256 1,905,256
2) Commitments
i) Estimated amount of contracts remaining
to be executed on Nil Nil
capital account not provided
for (net of advances)
ii) The Company, during the year has
capitalized interest on loan Nil Nil
(borrowing cost) amounting
4. CORPORATE SOCIAL RESPONSIBILITY (CSR) ACTIVITY
During the year, the company has spend 10,00,000/- towards corporate
social responsibility (CSR) under Section 135 of the Companies Act,
2013 and rules thereon by way of contribution to Round Table Trust for
promotion of Primary Education Infrastructure.
5. Segment Reporting: The Company has identified two segments viz a)
Wood based product b) Paper based product, which have been identified
in line with Accounting Standard 17 on segment reporting taking into
account organizational structure as were as differential risk and return
of these segments.
Details of the Products included in each segment are as under:
i) Wood based products: Plywood, Block Board, Veneers, Decorative
plywood, Prelaminated Partical Boards.
ii) Paper based products: Laminated Sheets (HPL).
The segment information has been prepared in conformity with the
Accounting Policies for preparing and presenting the financial
statements of the Company.
Segment revenue and results includes manufacturing as well as trading
activities for the same segment product. Segment current assets and
liabilities are taken on the basis of the turnover of the segment.
The following table presents the information relating to profit, assets
and liabilities of the business segment. (Primary Segment) of the
Company.
6. Disclosure as per Accounting Standard 18 (AS-18) "Related Party
Disclosures" Issued by the Institute of Chartered Accountants of India.
Associate Companies:
i) The Mysore Chip Boards Ltd
ii) Assam Timber Products Pvt Ltd
iii) Shree Shyam Tea Pvt Ltd
iv) Bordhumsa Tea Company Pvt Ltd
v) Vanraj suppliers Pvt Ltd
vi) Ravi Marketing Services Pvt Ltd
Key Management Personnel:
i) Mr. Deendayal Daga - Chairman
ii) Mr. Shyam Daga - Managing Director
iii) Mr. Rajiv Daga - Jt. Managing Director
Previous year's figures have been regrouped and re classified to
facilitate the comparison with current year's figures wherever
necessary.
7. CAPITALISATION OF HEDGING CHARGES
Hedging Charges of 35,79,838/- (PY 78,89,440/-) on foreign currency
term loan has been capitalised with the cost of fixed asset as per the
clause 46A of the Accounting Standard -11.
8. UNCLAIMED SHARES
In terms of Clause 5A of the Listing Agreement with the Stock Exchange,
the Company has opened the demat suspense account and has transferred
the 4425 unclaimed shares of public issue to "Archidply Industries
Limited Unclaimed Shares Suspense Account." The Voting rights on these
shares will remain frozen till the rightful owner claims the shares.
Opening Balance of the Shares in the demat account 4425
Closing Balance of the Shares in the demat account 4425
Mar 31, 2014
Note - 1
CONTINGENT LIABILITIES AND COMMITMENTS
(TO THE EXTENT NOT PROVIDED FOR)
As at As at
31st March, 2014 31st March, 2013
1. Contingent Liabilities :
a) On account of Demerger of
Plywood & Block Board and
Particle & laminated board
(both divisions) of The Mysore
Chip Boards Limited in to the
Company in the financial year
2007-08:
i) Various parties had filed
a civil suit for recovery of
dues/ damages against The
Mysore Chip Boards Limited,
which has been disputed by
The Mysore Chip Boards Limited 1,228,606 1,228,606
and had deposited an amount
of Rs. 11,46,419/- (P.Y. Rs.
11,46,419) with Hon''ble High
Court of Gujarat. The said
amount of Rs. 11,46,419/-
(P.Y. Rs. 11,46,419)
ii) The Company, for and on
behalf of The Mysore Chip
Boards Limited has given a
guarantee towards a show cause
notice issued by the Excise Department
demanding a dues from The Mysore
Chip Boards Limited. However The
Mysore Chip Boards Limited had
deposited an amount of Rs. 16,00,000/-
( P.Y. Rs. 16,00,000/) with Central
Excise Department. The Mysore Chip 8,101,637 8,101,637
Boards Limited had filed an appeal &
disputed the said demand and the
demand has been reduced to Rs.81,01,637/-
(P.Y. Rs.81,01,637/) by Commissioner of
Central Excise, Mysore on 05/10/2006.
The Mysore Chip Board Ltd has filed an
appeal to Custom, Excise & Service
Tax Appellate Tribunal, Bangalore and
obtained a stay order against that demand.
The tribunal has remanded back the case
to the Commissioner of Central Excise
for taking fresh decision after following
the principles of natural justice. The
Department has filed the appeal before
the Honourable Supreme Court against the
order of the Tribunal.
b) The Company has received show cause
notice issued by the Excise Department,
Commissionate Meerut -II demanding
Rs.4,41,92,921/- for period from April
2006 to december 2010 Rs.2,00,10,661/-
for period from Jan 2011 to March 2012 70,789,019 64,203,582
and Rs.65,85,437/- for period from April
2012 to December 2012 for production of
resin at its Rudrapur Unit which company
is using for its own production. Final
order dtd 29.03.2013 received from Excise
Department, Commissionate Meerut -II
confirming the demand . The Company has
gone for appeal to the Tribunal.
Company has received stay order from
the CESTAT on 21.04.2014 and directed to
deposit Rs.1,05,00,000/- for further
proceeding of the case.
c) The Deputy Commissioner of sales
tax Rudrapur has demanded Rs. 4998317/-
related to financial year 2007-08 and 5,135,004 5,135,004
Rs. 136687/- related to financial year
2006-07 and interest on above amount
till date. The Company has deposited
Rs. 1157615/- and filed appeal with Joint
Commissioner Appeal -I, Sales Tax
Uttrakhand against same demand.
d) The Company has filed appeal with 1,257,472 1,257,472
the Tribunal against the order of the
Commissioner for the availment and
utilization of irregular cenvat credit
taken on capital expenditure at Chintamani
Unit amounting to Rs. 43,03,304/- for the
financial year 2011-12. The Company has
reversed the amount of Rs.30,45,832/- and
charged it to profit & losss account. The
credit of an amount of Rs.12,57,472 is
under litigation
e) The Company has imported plant and
machinery under EPCG Scheme on which it 25,863,067 23,535,321
has availed Duty benefit
Raw material under Advance Licence Nil 35,698,088
scheme and availed a duty benefit
f ) The Company has undertaken Domestic
factoring facility for its trade 89,647,078 81,852,846
debtors from financial institutions.
Guarantees given by the bank on behalf 16,325,147 16,050,147
of the Company
g) The Company has filed a writ petition
in the honorable High Court of 1,905,256 -
Uttarakhand at Nainital against the
demand of mandi "market fee" levied by
the State of Uttarakhand @ 0.5% on purchase
of woods from the state of Uttar Pradesh
and 2.5% from any other place excluding
Uttar Pradesh with effect from Nov''2011.
Bulk of our wood comes from the state of
Uttar Pradesh, however liability amount
not yet determined.
Note - 2
Segment Reporting: The Company has identified two segments viz a) Wood
based product b) Paper based product, which have been identified in
line with Accounting Standard 17 on segment reporting taking into
account organizational structure as were as differential risk and
return of these segments.
Details of the Products included in each segment are as under:
i) Wood based products: Plywood, Block Board, Veneers, Decorative
plywood, Prelaminated Partical Boards.
ii) Paper based products: Laminated Sheets (HPL).
The segment information has been prepared in conformity with the
Accounting Policies for preparing and presenting the financial
statements of the Company.
Segment revenue and results includes manufacturing as well as trading
activities for the same segment product. Segment current assets and
liabilities are taken on the basis of the turnover of the segment.
The following table presents the information relating to profit, assets
and liabilities of the business segment. (Primary Segment) of the
Company.
Note - 3
Disclosure as per Accounting Standard 18 (AS-18) "Related Party
Disclosures" Issued by the Institute of Chartered Accountants of India.
Associate Companies:
i) The Mysore Chip Boards Ltd
ii) Assam Timber Products Pvt Ltd
iii) Shree Shyam Tea Pvt Ltd
iv) Bordhumsa Tea Company Pvt Ltd
v) Vanraj suppliers Pvt Ltd
vi) Ravi Marketing Services Pvt Ltd
Key Management Personnel:
i) Mr. Deendayal Daga  Chairman
ii) Mr. Shyam Daga  Managing Director
iii) Mr. Rajiv Daga  Jt. Managing Director
Note - 4
Previous year''s figures have been regrouped and re classified to
facilitate the comparison with current year''s figures wherever
necessary.
Note - 5 CAPITALISATION OF HEDGING CHARGES
Hedging Charges of Rs.78,89,440/- (PY Rs.52,53,672/-) on foreign
currency term loan has been capitalised with the cost of fixed asset as
per the clause 46A of the Accounting Standard -11.
Note : - 6 UNCLAIMED SHARES
In terms of Clause 5A of the Listing Agreement with the Stock Exchange,
the Company has opened the demat suspense account and has transferred
the 4425 unclaimed shares of public issue to "Archidply Industries
Limited Unclaimed Shares Suspense Account." The Voting rights on these
shares will remain frozen till the rightful owner claims the shares.
Opening Balance of the Shares in the demat account 4425
Closing Balance of the Shares in the demat account 4425
Mar 31, 2013
NOTE - 1
Segment Reporting : The Company has identifed three segments viz a)
Wood based product b) Paper based product, which have been identifed in
line with Accounting Standard 17 on segment reporting taking into
account organizational structure as were as diferential risk and return
of these segments.
Details of the Products included in each segment are as under:
i) Wood based products: Plywood, Block Board, Veneers, Decorative
plywood, Prelaminated Partical Boards.
ii) Paper based products: Laminated Sheets ( HPL).
The segment information has been prepared in conformity with the
Accounting Policies for preparing and presenting the fnancial
statements of the Company.
Segment revenue and results includes manufacturing as well as trading
activities for the same segment product. Segment current assets and
liabilities are taken on the basis of the turnover of the segment.
The following table presents the information relating to proft, assets
and liabilities of the business segment. (Primary Segment) of the
Company.
NOTE - 2
Disclosure as per Accounting Standard 18 (AS-18) "Related Party
Disclosures" Issued by the Institute of Chartered Accountants of India.
Associate Companies :
i) The Mysore Chip Boards Ltd.
ii) Assam Timber Products Pvt. Ltd.
iii) Shree Shyam Tea Pvt. Ltd.
iv) Bordhumsa Tea Company Pvt. Ltd.
v) Vanraj suppliers Pvt. Ltd.
vi) Ravi Marketing Services Pvt. Ltd.
Key Management Personnel :
i) Mr. Deen Dayal Daga  Chairman
ii) Mr. Shyam Daga  Managing Director
iii) Mr. Rajiv Daga  Jt. Managing Director
NOTE - 3
"Previous year fgures have been regrouped and re classifed to
facilitate the comparison with the current year fgures wherever
necessary".
NOTE - 4 CAPITALIsATION OF HEDGING CHARGEs
Hedging Charges of Rs.52,53,672/- (PY Rs. NIL) on foreign currency term
loan has been capitalised with the cost of fxed asset as per the clause
46A of the Accounting Standard -11. Company has started capitalization
of Hedging Charges from current fnancial year onwards. Hedging Charges
of Rs. 88,80,035/- was debited to proft & loss account for the fnancial
year 2011-12.
NOTE - 5 PROFIT ON LAND TRANsACTION
Other Income included the proft on sale of land transaction of Rs.
1,61,17,200/- (PY Nil) which the Company realized by buying and selling
land of its sister concern The Mysore Chipboard Limited.
NOTE - 6 UNCLAIMED sHAREs
In terms of Clause 5A of the Listing Agreement with the Stock Exchange,
the Company has opened the demat suspense account and has transferred
the 4425 unclaimed shares of public issue to "Archidply Industries
Limited unclaimed Shares Suspense Account." The Voting rights on these
shares will remain frozen till the rightful owner claims the shares.
Opening Balance of the shares in the demat account - 4425
Closing Balance of the shares in the demat account - 4425
Mar 31, 2012
A) The Company has only one class of equity shares having a par value
of Rs. 10 per share, each Shareholder is eligible for one vote per share.
b) 1,15,68,180 (Previous year 1,15,68,180) Equity shares of Rs. 10/- each
issued as fully paid up for acquiring the plywood and block board and
particle & laminated board (Both divisions) of the Mysore Chip Board
Limited pursuant to Scheme of Arrangement sanctioned by Hon'ble High
court of Karnataka without payment being received in cash in the
financial year 2007-08.
c ) 65,000 (Previous year 51,500) Shares out of issued, subscribed and
paid up capital were allotted under ESOP scheme for Rs. 10/- each. The in
principle approval for the Employee stock Option scheme - "Archidply
Industries Limited ESOS-2009" exercisable into not more than 2,00,000
options has been obtained by the Company. The options are vested to the
eligible employees as per the scheme with effect from 1st April, 2010.
The total options granted on 1st April, 2009 were 93,000 at an exercise
price of Rs. 10 per option. The options vested were 72,500 and options
exercised were 65,000 as on 31st March, 2012. The total number of
shares arising as a result of exercise of options are 65,000 shares.
d) 13,500/- (Previous year 51,500) Equity shares of Rs. 10/- each issued
as fully paid up under ESOP Scheme.
Term of repayment and nature of Security for long term secured
borrowings :
i) Term Loan amounting of Rs. 1,20,35,876/- (31st March, 2011 : Rs.
5,49,21,692) is secured by first charge on all immovable properties of
Rudrapur unit of the Company present and future and hypothecation of
all assets both present and future of Rudrapur unit and personal
guarantee of promotor directors and repayable in 20 quarterly
installments starting from April 2007 last installment due on April
2012.
ii) Term Loan amounting of Rs. 2,98,86,558/- (31st March, 2011 : Rs.
2,97,66,492) is secured by first charge on all immovable properties of
Chintamani unit of the Company present and future and hypothecation of
all assets both present and future of Chintamani unit and personal
guarantee of promotor directors and repayable in 41 monthly
installments starting from August 2012 last installment due on December
2015.
iii) Term Loan amounting of Rs. 10,83,09,034/- (31st March, 2011 : Rs.
10,83,00,000) is secured by first charge on all immovable properties of
Chintamani unit of the Company present and future and hypothecation of
all assets both present and future of Chintamani unit and personal
guarantee of promoter directors and repayable in 50 monthly
installments starting from August 2012 last installment due on
September 2016.
iv) Unsecured Term Loan amounting of Rs. Nil (31st March, 2011 : Rs.
19,08,837) repayable in 24 monthly installments starting from April
2011 last installment due on March 2013.
v) Installments falling due in respect of all the above loans up to
31st March, 2013 have been grouped under "Current maturities of Long
Term Debt"
(Refer Note 7)
NOTE - 1
CONTINGENT LIABILITIES AND COMMITMENTS As at As at
(TO THE EXTENT NOT PROVIDED FOR) 31st March,
2012 31st March,
2011
1. CONTINGENT LIABILITIES :
a) On account of Demerger of Plywood &
Block Board and Particle & laminated
board (both divisions) of The Mysore
Chip Boards Limited in to the Company
in the financial year 2007-08 :
i) The Government of Karnataka has
demanded additional seigniorage and
interest towards supply of timber to
the factory of The Mysore Chip
Boards Limited, with effect from 23rd
February, 1981 to 28th June, 1982.
The Mysore Chip Boards Limited, being
a sick company at that time, 16,04,023 16,04,023
made request to the appropriate
authority for waiver of this amount.
However as a precautionary measure,
The Mysore Chip Boards Limited has
already paid an amount of Rs. 4,25,741.95
(P.Y. Rs. 4,25,741.95) against this demand.
ii) Various parties had filed a civil
suit for recovery of dues / damages
against The Mysore Chip Boards Limited,
which has been disputed by The Mysore
Chip Boards Limited 12,28,606 12,28,606
and had deposited an amount of
Rs. 11,46,419/- (P.Y. Rs. 11,46,419) with
Hon'ble High Court of Gujarat. The said
amount of Rs. 11,46,419/- (P.Y.
Rs. 11,46,419)
iii) The Company, for and on behalf of
the Mysore Chip Boards Limited has
given a guarantee towards a show cause
notice issued by the Excise Department
demanding a dues from The Mysore Chip
Boards Limited. However The Mysore Chip
Boards Limited had deposited an amount
of Rs. 16,00,000/- (P.Y. Rs. 16,00,000)
with Central Excise Department. The
Mysore Chip Boards Limited had filed
an appeal & disputed the said demand
and the demand has been reduced to
Rs. 81,01,637/- (P.Y. 1,62,03,274 1,62,03,274
Rs. 81,01,637) and the penalty of the
same amount by Commissioner of
Central Excise, Mysore on 5th October,
2006. The Mysore Chip Board Ltd has
filed an appeal to Custom, Excise &
Service Tax Appellate Tribunal,
Bangalore and obtained a stay order
against that demand. The tribunal
has remanded back the case to the
Commissioner of Central Excise for
taking fresh decision after following
the principles of natural justice.
b) The Company has received show
cause notice issued by the Excise
Department, Commissionate Meerut-II
demanding Rs. 4,41,92,921/- for
period from April 2006 to December 2010 4,41,92,921 -
for production of phenol formaldehyde
resin which company is using for its
own production. Hearing is going with
the Excise Department, Commissionate
Meerut-II.
c) The Deputy Commissioner of sales
tax Rudrapur has demanded Rs. 49,98,317/-
related to financial year 2007-08
and Rs. 1,36,687/- related to financial
year 2006-07 and interest 51,35,004 -
on above amount till date. The Company
has deposited Rs. 11,57,615/- and filed
appeal with Joint Commissioner
Appeal-I, Sales Tax Uttarchand against
same demand.
d) The Company has imported plant and
achinery under EPCG 3,07,94,751 3,07,94,751
Scheme on which it has availed Duty
benefit Raw material under Advance
Licence scheme and availed a 2,51,96,190 2,51,96,190
duty benefit
e) The Company has undertaken
Domestic factoring facility for 10,02,99,387 10,22,98,939
its trade debtors from financial
institutions.
f) Guarantees given by the bank on
behalf of the Company 97,38,542 1,10,11,170
2. COMMITMENTS :
i) Estimated amount of contracts
remaining to be executed - 58,00,000
on capital account not provided for
(net of advances)
ii) The Company, during the year has
capitalized interest on - 20,32,993
loan (borrowing cost) amounting
NOTE - 2
Segment Reporting : The Company has identified three segments viz a)
Wood based product; b) Paper based product, which have been identified
in line with Accounting Standard 17 on segment reporting taking into
account organizational structure as were as differential risk and
return of these segments.
Details of the Products included in each segment are as under :
i) Wood based products : Plywood, Block Board, Veneers, Decorative
Plywood, Prelaminated Particle Boards.
ii) Paper based products : Laminated Sheets (HPL).
The segment information has been prepared in conformity with the
Accounting Policies for preparing and presenting the financial
statements of the Company.
Segment revenue and results includes manufacturing as well as trading
activities for the same segment product. Segment current assets and
liabilities are taken on the basis of the turnover of the segment.
NOTE - 3
Disclosure as per Accounting Standard 18 (AS-18) "Related Party
Disclosures" Issued by the Institute of Chartered Accountants of India.
Associate Companies :
i) The Mysore Chip Boards Ltd.
ii) Assam Timber Products Pvt. Ltd.
iii) Shree Shyam Tea Pvt. Ltd.
iv) Bordhumsa Tea Company Pvt. Ltd.
v) Vanraj suppliers Pvt. Ltd.
vi) Ravi Marketing Services Pvt. Ltd.
Key Management Personnel :
i) Mr. Deen Dayal Daga - Chairman
ii) Mr. Shyam Daga - Managing Director
iii) Mr. Rajiv Daga - Jt. Managing Director
iv) Mr. K.K. Somani - Director Technical
NOTE - 4
The Financial Statement for the year ended 31st March, 2011 has been
prepared as per the then applicable, prerevised Schedule VI of the
Companies Act, 1956. Consequent to the notification under the Companies
Act, 1956, the Financial Statement for the year ended 31st March, 2012
are prepared under revised Schedule VI. Accordingly the previous year's
figures have also been classified to conform to the year's
classification.
NOTE - 5 : SALE OF LAND AT MYSORE
The Company has sold the land of the Mysore Unit of 225423 sq. ft. (5
Acres 7 Guntas) area for Rs. 20,85,16,276/- only. The Company has also
earned the income on the sale of land at Mysore Unit belonging to The
Mysore Chipboards Limited measuring 251559 sq. ft. (5 Acres 31 Guntas)
area of Rs. 4,65,38,415/-. The land was purchased from the Mysore
Chipboards Limited for Rs. 740 per sq. ft. and was sold at Rs. 925 sq. ft.
NOTE - 6 : BAD DEBTS WRITTEN OFF
The Company has written off Debtors to the extent of Rs. 11.90 crore
(previous year Rs. Nil) to the Bad debt which was inactive for more than
4 or more years and all avenues have been exhausted by management to
collect the outstanding debt.
NOTE - 7 : UNCLAIMED SHARES
In terms of Clause 5A of the Listing Agreement with the Stock Exchange,
the Company has opened the demat suspense account and has transferred
the 4425 unclaimed shares of public issue to "Archidply Industries
Limited Unclaimed Shares Suspense Account." The voting rights on these
shares will remain frozen till the rightful owner claims the shares.
Opening Balance of the shares in the demat account - 4425
Closing Balance of the shares in the demat account - 4425
Mar 31, 2011
1. The principle approval for the Employee Stock Option Scheme, 2009
exercisable into not more than 2,00,000 options has been obtained by
the Company in the year 2009-10. The 51500 options were exercised
during the year and 51500 Equity shares of Rs. 10/- each issued as
fully paid up under ESOP Scheme. The listing & trading approval for
51500 shares was taken from the stock exchanges where the Company's
share are listed. The amount of Rs. 42475 was transferred to Securities
Premium account on exercise of options and Rs.344030 has been reversed
during the year due to the leaving of the employees to whom the options
were granted and were due in the following financial year as per
SEBI(ESOP ) Guidelines,1999.
2. Contingent Liabilities not provided for in respect of:
a) On account of Demerger of Plywood & Block Board and Particle &
laminated board (both divisions) of The Mysore Chip Boards Limited into
the Company in the financial year 2007-08:
I) The Government of Karnataka has demanded additional seigniorage and
interest amounting to Rs. 16,04,022.77
(P.Y. Rs. 16,04,022.77) towards supply of timber to the factory of The
Mysore Chip Boards Limited, with effect from 23/2/1981 to 28/6/1982.
The Mysore Chip Boards Limited, being a sick company at that time, made
request to the appropriate authority for waiver o f this amount.
However as a precautionary measure, The Mysore Chip Boards Limited has
already paid an amount of Rs. 425741.95 (P.Y. Rs. 425741.95) against
this demand.
ii) Various parties had filed a civil suit for recovery of dues /
damages amounting to Rs. 12,28,606/- (P.Y. Rs. 12,28,606/) against The
Mysore Chip Boards Limited, which has been disputed by The Mysore Chip
Boards Limited and had deposited an amount of Rs. 11,46,419/- ( P.Y.
Rs. 11,46,419 ) with Hon'ble High Court of Gujarat. The said amount of
Rs. 11,46,419/- (P.Y. Rs. 11,46,419) had shown as an advance which Is
included in Schedule no. 10 - Loans and Advances (Advances recoverable
in cash or kind or for value to be received) forming part of Balance
Sheet.
iii) The Company, for and on behalf of The Mysore Chip Boards Limited
has given a guarantee towards a show cause notice issued by the Excise
Department demanding a dues of Rs. 7,28,91,397/- (P.Y. Rs.
7,28,91,397/) from The Mysore Chip Boards Limited. However The Mysore
Chip Boards Limited had deposited an amount of Rs. 16,00,000/-( P.Y.
Rs. 16,00,000/) with Central Excise Department. The Mysore Chip Boards
Limited had filed an appeal & disputed the said demand and the demand
has been reduced to Rs.81,01,637/- (P.Y. Rs.81,01,637/) and the penalty
of the same amount by Commissioner of Central Excise, Mysore on
05/10/2006. The Mysore Chip Board Ltd has filed an appeal to Custom,
Excise & Service Tax Appellate Tribunal, Bangalore and obtained a stay
order against that demand. The tribunal has remanded back the case to
the Commissioner of Central Excise for taking fresh decision after
following the principles of natural justice.
b) The Company has imported plant and machinery under EPCG Scheme on
which it has availed a duty benefit of Rs. 3,07,94,750.83 (P.Y.
3,01,09,109.82/-) & raw material under Advance Licence scheme and
availed a duty benefit of Rs. 2,51,96,189.93/- (P.Y. 2,44,92,965.38/-).
The company has net export obligation of Rs. 24,17,88,615/- ( P.Y. Rs.
21,09,22,815/- ) against these benefits at the year end.
c) Letter of Credit established but material not received amounting to
Rs. 58,06,388.42/-(P.Y. Rs. 2,29,58,102.39/-)
d) The Company has undertaken Domestic factoring facility for its trade
debtors from financial institutions, the contingent liability for the
same as at 31st March 2011 is Rs.10,22,98,938.60/- (P.Y. Rs.
11,16,12,418.04/-)
e) Guarantees given by the bank on behalf of the Company is
Rs.1,10,11,170/- (P.Y. Rs.1,10,11,170/-)
3. Estimated amount of contracts remaining to be executed on capital
account not provided for (net of advances) :Rs. Nil (Previous year Rs.
58 Lakhs).
4. The Company, during the year has capitalized interest on loan
(borrowing cost) amounting to Rs. 20,32,993/- (Previous year Rs.
4,58,096/-)
5. Segment Reporting : The Company has identified two segments viz a)
Wood based product b) Paper based product, which have been identified
in line with Accounting Standard 17 on segment reporting taking into
account organizational structure as were as differential risk and
return of these segments.
Details of the Products included in each segment are as under:
i)Wood based products: Plywood, Block Board, Veneers, Decorative
plywood, Prelaminated Partical Boards.
ii)Paper based products: Laminated Sheets ( HPL).
The segment information has been prepared in conformity with the
Accounting Policies for preparing and presenting the financial
statements of the Company.
Segment revenue and results includes manufacturing as well as trading
activities for the same segment product. Segment current assets and
liabilities are taken on the basis of the turnover of the segment.
B) Secondary Segment Reporting :
The Company has no reportable secondary segment.
6. Disclosure as per Accounting Standard 18 ( A S - 1 8 ) "Related
Party Disclosures" Issued by the Institute of Chartered Accountants of
India.
i)The Mysore Chip Boards Ltd ii)Assam Timber Products Pvt Ltd iii)Shree
Shyam Tea Pvt Ltd iv)Bordhumsa Tea Company Pvt Ltd v)Vanraj suppliers
Pvt Ltd vi)Ravi Marketing Services Pvt Ltd
Key Management Personnel:
i)Mr. Deendayal Daga - Chairman ii)Mr. Shyam Daga - Managing Director
iii)Mr. Rajiv Daga - Jt. Managing Director iv)Mr. K.K. Somani -
Director Technical
7. Earning Per Share:
As required by Accounting Standard - AS 20 "Earning Per Share" issued
by the Institute of Chartered Accountants of India", the Earning Per
Share (EPS) is calculated by dividing the profit for the year
attributable to the Equity Shareholders by the weighted average number
of Equity Shares outstanding during the year and is ascertained as
follows.
8. In the opinion of the Board,Current Assets, and Loans and Advances
are approximately of the value stated if realized in the ordinary
course of business. The provision for all known and determined
liabilities is adequate and not in excess of the amounts reasonably
required.
9. Balances of some of the Sundry Debtors, Creditors, Loans and
Advances are subject to confirmation, reconciliation and consequent
adjustment if any. However, in the opinion of the management such
adjustments, if any, will not material.
10. The Process of Identifying the suppliers who fall within the Micro,
Small & Medium Enterprises Development Act 2006 has been initiated. In
the absence of information, Company is unable to provide information
regarding the principle amount outstanding & interest due thereon
remaining unpaid to any supplier & other details under the Micro, Small
& Medium Enterprises Development Act 2006 as at 31-03-2011.
11. Previous year's figures have been regrouped reclassified and
recasted wherever necessary to confirm to this year's classification.
12. Unclaimed Shares
In terms of clause 5A of the Listing Agreement with the Stock Exchange,
the Company has opened the demat suspense account
and has transferred the 5400 unclaimed shares of Public Issue to
"Archidply Industries Limited Unclaimed Securities Suspense Account".
The voting rights on these shares will remain frozen till the rightful
owner claims the shares.
Opening Balance of the shares in the demat account - 5400
Closing balance of the shares in the demat account - 4425
No. of share transferred to share holders during the year - 975
No. of shareholders at the beginning of the year 13
No. of shareholders to whom transferred from suspense account during
the year - 3
No. of shareholders at the end of the year - 10
Mar 31, 2010
1. The in principle approval for the Employee Stock Option Scheme,
2009 (ESOS) exercisable into not more than 2,00,000 options has been
obtained by the Company. On 01.04.2009, 93000 options were granted to
the eligible employees @Rs. 10 per option by the Compensation
Committee. The Company follows intrinsic value method to account for
its ESOS.In this regard the Company has complied with the SEBI(Employee
Stock Option Scheme & Employee Stock Option Purchase Scheme)Guidelines,
1999. The accounting value of options is equal to the aggregate,
overall employee stock options granted during the accounting period, of
the intrinsic value of the option.The accounting value accounted for as
an employee compensation, shall be amortised on a straight line method
basis over the vesting period in line with the Securities and Exchange
Board of India (SEBI) Guidelines.
2. Contingent Liabilities not provided for in respect of:
a) On account of Demerger of Plywood & Block Board and Particle &
laminated board (both divisions) of The Mysore Chip Boards Limited into
the Company in the financial year 2007-08:
I) The Government of Karnataka has demanded additional seigniorage and
interest amounting to Rs. 16,04,022.77
(P.Y. Rs. 16,04,022.77) towards supply of timber to the factory of The
Mysore Chip Boards Limited, with effect from 23/2/1981 to 28/6/1982.
The Mysore Chip Boards Limited, being a sick company at that time, made
request to the appropriate authority for waiver o f this amount.
However as a precautionary measure, The Mysore Chip Boards Limited has
already paid an amount of Rs. 425741.95 (P.Y. Rs. 425741.95) against
this demand.
ii) Various parties had filed a civil suit for recovery of dues /
damages amounting to Rs. 12,28,606/- (P.Y. Rs. 12,28,606/) against The
Mysore Chip Boards Limited, which has been disputed by The Mysore Chip
Boards Limited and had deposited an amount of Rs. 11,46,419/- ( P.Y.
Rs. 11,46,419 ) with Honble High Court of Gujarat. The said amount of
Rs. 11,46,419/- (P.Y. Rs. 11,46,419) had shown as an advance which Is
included in Schedule no. 10 - Loans and Advances (Advances recoverable
in cash or kind or for value to be received) forming part of Balance
Sheet.
iii) The Deputy Commissioner of commercial Taxes vide Its order dated
6th June 2007 demanded dues towards sales tax and entry tax of Rs.101.7
lakhs (P.Y.Rs.101.7 lakhs) for the year 2001-2004, out of this still
Rs.10.79 lakhs (P.Y.Rs.10.79lakhs) is still not paid as Company has
made representation to reduce the liability.
iv) The Company, for and on behalf of The Mysore Chip Boards Limited
has given a guarantee towards a show cause notice issued by the Excise
Department demanding a dues of Rs. 7,28,91,397/- (P.Y. Rs.
7,28,91,397/-) from The Mysore Chip Board Limited. However The Mysore
Chip Boards Limited had deposited an amount of Rs. 16,00,000/- ( P.Y.
Rs.16,00,000/-) with Central Excise Department. The Mysore Chip Boards
Limited had filed an appeal & disputed the said demand and the demand
has been reduced to Rs
.81,01,637/- (P.Y. Rs.81,01,637/-) and the penalty of the same amount
by Commissioner of Central Excise, Mysore on 05/10/2006. The Mysore
Chip Board Ltd has filed an appeal to Custom, Excise & Service Tax
Appellate Tribunal, Bangalore and obtained a stay order against that
demand.
b) The Company has imported plant and machinery & availed a duty
benefit of Rs. 3,01,09,109.82/- (P.Y. Rs.2,93,04,171.42/-) under EPCG
scheme for reduction in import duty against which the company has net
export obligation of Rs. 21,09,22,815/- (P.Y. Rs.2,93,04,171.42/-) at
the year end.
c) Letter of Credit established but material not received amounting to
Rs.2,29,58,102.39/- (P.Y. Rs.2,96,48,655/-)
d) The Company has undertaken Domestic factoring facility for its trade
debtors from SBI Global Factors Ltd & IndusInd Bank Limited, the
contingent liability for the same as at 31st March 2010 is
Rs.11,16,12,418.04/- (P.Y. Rs.4,73,25,218.89/-)
e) Guarantees given by the bank on behalf of the Company is
Rs.1,10,11,170/- (P.Y. Rs.1,37,08,470/-)
3. In case of Demerger of Plywood & Block Board and Particle &
laminated board (both divisions) of The Mysore Chip Board Limited in to
the Company in the financial year 2007-08. The Company has filed the
Memo with Honble High Court of Karnataka for the decree and waiting
for the decree from the Honble High Court of Karnataka.
4. Estimated amount of contracts remaining to be executed on capital
account not provided for (net of advances)Rs. 58 Lakhs (Previous year
Rs.100 lakhs).
5. The Company, during the year has capitalized interest on loan
(borrowing cost) amounting to Rs. 4,58,096/- (Previous year
Rs.10,95,892/-)
The Company has not paid any commission to the Managerial Personnel.
Hence the calculation under Section 349 & 350 read with Section 309 of
the Companies Act, 1956 is not applicable.
6. Segment Reporting : The Company has identified two segments viz a)
Wood based product b) Paper based product, which have been identified
in line with Accounting Standard 17 on segment reporting taking into
account organizational structure as were as differential risk and
return of these segments.
Details of the Products included in each segment are as under:
i)Wood based products: Plywood, Block Board, Veneers, Decorative
plywood, Prelaminated Partical Boards.
ii)Paper based products: Laminated Sheets ( HPL).
The segment information has been prepared in conformity with the
Accounting Policies for preparing and presenting the financial
statements of the Company.
Segment revenue and results includes manufacturing as well as trading
activities for the same segment product. Segment current assets and
liabilities are taken on the basis of the turnover of the segment.
The following table presents the information relating to profit, assets
and liabilities of the business segment. (Primary Segment) of the
Company.
B) Secondary Segment Reporting :
The Company has no reportable secondary segment.
7. Disclosure as per Accounting Standard 18 ( A S - 1 8 ) "Related
Party Disclosures" Issued by the Institute of Chartered Accountants of
India.
Associate Companies:
i) The Mysore Chip Boards Ltd ii) Assam Timber Products Pvt Ltd iii)
Shree Shyam Tea Pvt Ltd
Key Management Personnel:
i)Mr. Deendayal Daga - Chairman ii)Mr. Shyam Daga - Managing Director
iii)Mr. Rajiv Daga - Jt. Managing Director iv)Mr. K.K. Somani -
Director Technical The Company has entered into transactions with
aforesaid parties as listed below during the year under consideration.
Full Disclosure has been made and the Board of Directors considers such
transactions to be in normal course of business and at rates agreed
between the parties. Details of transactions with related parties are
as follows :
8. Earning Per Share:
As required by Accounting Standard - AS 20 "Earning Per Share" issued
by the Institute of Chartered Accountants of India", the Earning Per
Share (EPS) is calculated by dividing the profit for the year
attributable to the Equity Shareholders by the weighted average number
of Equity Shares outstanding during the year and is ascertained as
follows.
9. In the opinion of the Board,Current Assets, and Loans and Advances
are approximately of the value stated if realized in the ordinary
course of business. The provision for all known and determined
liabilities is adequate and not in excess of the amounts reasonably
required.
10. Balances of some of the Sundry Debtors, Creditors, Loans and
Advances are subject to confirmation, reconciliation and consequent
adjustment if any. However, in the opinion of the management such
adjustments, if any, will not material.
11. The Process of Identifying the suppliers who fall within the Micro,
Small & Medium Enterprises Development Act 2006 has been initiated. In
the absence of information, Company is unable to provide information
regarding the principle amount outstanding & interest due thereon
remaining unpaid to any supplier & other details under the Micro, Small
& Medium Enterprises Development Act 2006 as at 31-03-2010.
12. Fixed Assets has been regrouped and reclassified, as a result plant
& machinery of Rs. 4,01,87,486/-, has been transferred to Building Rs.
3,88,35,891/-, Electical Installation Rs. 10,40,479/-, Water
Installation Rs. 2,08,265/-, Laboratory Equipment Rs. 59,558/-,
Computer Rs. 24,315/- and Office Equipment Rs. 18,978/-. Because of
regrouping modvat credit of excise duty to the tune of Rs. 42,95,557/-
has been reversed and added to Building. Due to this excess
depreciation of Rs. 4,27,601/- charged in last financial year has been
adjusted in the current year depreciation.
13. Previous years figures have been regrouped reclassified & recasted
wherever necessary to confirm to this years classification.
Disclaimer: This is 3rd Party content/feed, viewers are requested to use their discretion and conduct proper diligence before investing, GoodReturns does not take any liability on the genuineness and correctness of the information in this article
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