Notes to Accounts of Century Plyboards (India) Ltd.

Mar 31, 2025

r. Provisions (other than employee benefits)

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. If the effect of the time value of money is material, provisions are
discounted at a current pre-tax rate that reflects the risks specific to the liability. When discounting is used, the increase
in the provision due to the passage of time is recognised as a finance cost.

The amortisation or “unwinding” of the discount applied in establishing the provision is charged to the income statement
in each accounting period. The amortisation of the discount is shown within finance costs in profit or loss.

s. Current and non-current classification

The Company presents assets and liabilities in the balance sheet based on current / non-current classification.

An asset is classified as current when it satisfies any of the following criteria:

- it is expected to be realized in, or is intended for sale or consumption in, the Company''s normal operating cycle.

- it is held primarily for the purpose of being traded;

- it is expected to be realized within 12 months after the reporting date; or

- it is cash or cash equivalent unless it is restricted from being exchanged or used to settle a liability for at least 12
months after the reporting date.

All other assets are classified as non-current.

A liability is classified as current when it satisfies any of the following criteria:

- it is expected to be settled in the Company''s normal operating cycle;

- it is held primarily for the purpose of being traded;

- it is due to be settled within 12 months after the reporting date; or

- the Company does not have an unconditional right to defer settlement of the liability for at least 12 months after the
reporting date. Terms of a liability that could, at the option of the counterparty, result in its settlement by the issue of
equity instruments do not affect its classification.

All other liabilities are classified as non-current.

Deferred tax assets and liabilities are classified as non current only.

t. Contingent Liabilities

Contingent liabilities are disclosed when there is a possible obligation arising from past events, the existence of which
will be confirmed only by the occurrence or non-occurrence of one or more uncertain future events not wholly within the
control of the Company or a present obligation that arises from past events where it is either not probable that an outflow
of resources will be required to settle the obligation or a reliable estimate of the amount cannot be made. The material
accounting policies adopted in preparation of standalone financial statements has been disclosed as below. All accounting
policies has been consistently applied to all the period presented in the standalone financial statements unless otherwise
stated. Provisions, contingent liabilities and contingent assets are reviewed at each reporting date.

u. Events after the reporting date

If the Company receives information after the reporting period, but prior to the date of approved for issue, about conditions
that existed at the end of the reporting period, it will assess whether the information affects the amounts that it recognises
in its standalone financial statements. The Company will adjust the amounts recognised in its financial statements to
reflect any adjusting events after the reporting period and update the disclosures that relate to those conditions in light
of the new information. For non-adjusting events after the reporting period, the Company will not change the amounts
recognised in its standalone financial statements, but will disclose the nature of the non-adjusting event and an estimate
of its financial effect, or a statement that such an estimate cannot be made, if applicable.

v. Climate related matters

The Company considers climate-related matters in estimates and assumptions, where appropriate. This assessment
includes a wide range of possible impacts on the Company due to both physical and transition risks. Even though the
Company believes its business model and products will still be viable after the transition to a low-carbon economy,
climate-related matters increase the uncertainty in estimates and assumptions underpinning several items in the financial
statements. Even though climate-related risks might not currently have a significant impact on measurement, the
Company is closely monitoring relevant changes and developments, such as new climate-related legislation. The items
and considerations that can be impacted by climate-related matters are:

• Useful life of property, plant and equipment.

• Impairment of non-financial assets.

• Fair value measurement.

• Decommissioning liability.

w. Risk of tariff imposition

The management has evaluated the likely impact of prevailing uncertainties relating to imposition or enhancement of
reciprocal tariffs and believes that there are no material impacts on the financial statements of the Company for the year
ended March 31, 2025. However, the management will continue to monitor the situation from the perspective of potential
impact on the operations of the Company.

The preparation of financial statements in conformity with the recognition and measurement principles of Ind AS requires
management of the Company to make estimates and judgements that affect the reported balances of assets and liabilities,
disclosures of contingent liabilities as at the date of financial statements and the reported amounts of income and expenses
for the periods presented. Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting
estimates are recognised in the period in which the estimates are revised, and future periods are affected.

The Company uses the following critical accounting judgements, estimates and assumptions in preparation of its financial
statements:

a. Defined Benefit Plans - The cost of the employment benefits such as gratuity and leave obligation are determined using
actuarial valuations. An actuarial valuation involves making various assumptions that may differ from actual developments
in the future. These include the determination of the discount rate, future salary increases and mortality rates. Due to the
complexities, involved in the valuation and its long-term nature, a defined benefit obligation is highly sensitive to changes
in these assumptions. All assumptions are reviewed at each reporting date.

Further details about gratuity obligations are given in note no. 32.

b. Useful lives of depreciable/ amortisable assets - Management reviews its estimate of the useful lives of depreciable/
amortisable assets at each reporting date, based on the expected utility of the assets. Uncertainties in these estimates
relate to technical and economic obsolescence that may change the utility of certain software, customer relationships, IT
equipment and other plant and equipment (Refer Note No.3).

c. Significant judgments when applying Ind AS 115 - Revenue is recognised upon transfer of control of promised
products or services to customers in an amount that reflects the consideration which the Company expects to receive
in exchange for those products or services. The application of revenue recognition accounting standards is complex and
involves a number of key judgements and estimates. Revenue is measured based on the transaction price, which is the
consideration, adjusted for volume discounts, price concessions and incentives, if any, as specified in the contract with the
customer/dealer. The Company makes estimates related to customer performance and sales volume to determine the total
amounts earned and incentive to be recorded as deductions (Refer Note No.24).

d. Recognition of current tax and deferred tax - The Company uses judgements based on the relevant rulings in the
areas of allocation of revenue, costs, allowances, and disallowances which is exercised while determining the provision for
income tax. Deferred income tax expense is calculated based on the differences between the carrying value of assets and
liabilities for financial reporting purposes and their respective tax basis that are considered temporary in nature. Valuation
of deferred tax assets is dependent on management''s assessment of future recoverability of the deferred benefit. Expected
recoverability may result from expected taxable income in the future, planned transactions or planned tax optimizing
measures. Economic conditions may change and lead to a different conclusion regarding recoverability (Refer Note No.7
and 23).

e. Provision for expected credit losses of trade receivables and contract assets - The Company uses a provision
matrix to calculate ECLs for trade receivables and contract assets. The provision rates are based on days past due for
Comparing of various customer that have similar loss patterns. The provision matrix is initially based on the Company''s
historical observed default rates. The Company will calibrate the matrix to adjust the historical credit loss experience with
forward-looking information. At every reporting date, the historical observed default rates are updated and changes in the
forward-looking estimates are analysed.

The assessment of the correlation between historical observed default rates, forecast economic conditions and ECLs is a
significant estimate. The amount of ECLs is sensitive to changes in circumstances and of forecast economic conditions. The
Company''s historical credit loss experience and forecast of economic conditions may also not be representative of customer''s
actual default in the future.

Ministry of Corporate Affairs (“MCA”) notifies new standards or amendments to the existing standards under Companies (Indian
Accounting Standards) Rules as issued from time to time. For the year ended March 31, 2025, The below two amendments are
not yet notified: -

• Amendments to Ind AS 7 and Ind AS 107 - Supplier Finance Arrangements- The MCA issued amendments to Ind AS 7
Statement of Cash Flows and Ind AS 107 Financial Instruments: Disclosures clarify the characteristics of supplier finance
arrangements and require additional disclosure of such arrangements. The disclosure requirements in the amendments
are intended to assist users of financial statements in understanding the effects of supplier finance arrangements on an
entity''s liabilities, cash flows and exposure to liquidity risk.

• Amendments to Ind AS 1 - Classification of Liabilities as Current or Non-current- The MCA issued amendments
to paragraphs 69 to 76 of Ind AS 1 to specify the requirements for classifying liabilities as current or non-current. The
amendments clarify:

♦ What is meant by a right to defer settlement

♦ That a right to defer must exist at the end of the reporting period

♦ That classification is unaffected by the likelihood that an entity will exercise its deferral right

♦ That only if an embedded derivative in a convertible liability is itself an equity instrument would the terms of a liability
not impact its classification

In addition, a requirement has been introduced to require disclosure when a liability arising from a loan agreement is classified
as non-current and the entity''s right to defer settlement is contingent on compliance with future covenants within twelve
months. The amendments had no impact on the classification of Company''s liabilities.

7. Income Tax and Deferred Tax (Contd.)

(vi) The Company has reviewed its income tax treatments in order to determine whether they could have an impact on the financial
statements and concluded that it has no material impact on the Company''s financial statements. As a practice, where the
interpretation of income tax law is not clear, management relies on some or all of the following factors to determine the
probability of its acceptance by the tax authority:

• Strength of technical and judicial argument and clarity of the legislation;

• Past experience related to similar tax treatments in its own case;

• Legal and professional advice or case law related to other entities.

After analysing above factors for each of such uncertain tax treatments, where the Company expects that the probability to
sustain its position on ultimate resolution of such uncertain tax treatment is remote, the Company ensures that such uncertain
tax positions are adequately provided for in the Company''s financial Statements.

12. Equity Share Capital (Contd.)

e) Terms/Rights attached to the Equity Shares

The company has only one class of equity shares having par value of H1/- per share. Each holder of equity shares is entitled to
one vote per share.

The company declares and pays dividends in Indian rupees. The dividend proposed by the Board of Directors is subject to
the approval of shareholders in the Annual General Meeting, except in case of interim dividend.In the event of liquidation of
the company, the holders of equity shares will be entitled to receive remaining assets of the company, after distribution of all
preferential amounts in proportion to their shareholdings.

f) The Company does not have any Holding/ Ultimate Holding Company. As such, no shares are held by them or their Subsidiaries/
Associates

g) There are NIL ( Previous year NIL) shares reserved for issue under option and contracts/commitment for the sale of shares/
disinvestment.

h) During the period of five years immediately preceeding the reporting date:

i. No shares were issued for consideration other than cash

ii. No bonus shares were issued

iii. No shares were bought back

i) There are NIL (Previous year NIL) securities convertible into Equity/ Preference Shares.

j) There are NIL (Previous year NIL) calls unpaid including calls unpaid by Directors and Officers as on the balance sheet date.

k) No shares were forfeited during the year or during the previous year.1,38,000 equity shares of H10/-each (post split 13,80,000
equity shares of H1 each) on which H3.54 lacs had been paid up, were forfeited in the year 2001-2002.

13. Other Equity (Contd.)

General Reserve: General reserve is created from time to time by way of transfer of profits from retained earnings for appropriation
purpose. General reserve is created by a transfer from one component of equity to another and is not an item of other comprehensive
income.

Capital Redemption Reserve: This reserve was created upon redemption of preference shares by company in FY 2012-2013.

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.

Notes:-

a) Cash Credit and Buyer''s Credit for raw materials from banks amounting to H11,217.03 lacs (31st March, 2024 : H6,700.75 lacs)
are secured by way of first pari passu charge on current assets (both present and future) of 6 units of the company viz. Diamond
Harbour Road, W.B., Ramba Road, Taraori, Haryana, Chinnappolapuram, Tamilnadu, Mirza Palasbari Road, Assam, Bacchau,
Gujarat and Doulowal, Hoshiarpur, Punjab.

b) Buyer''s Credit for Capital expenditure from banks amounting to H16,116.19 lacs (31st March, 2024 : H10,865.29 lacs) are secured
by way of first pari passu charge on moveable and immovable fixed assets of the manufacturing unit located at Diamond
Harbour Road, Bishnupur, West Bengal for Capex Buyer''s Credit of Standard Chartred Bank and on first pari passu charge on
fixed assets of Particle Board unit at Vill. Goommidipondi, Tiruvallur, Tamilnadu for Capex Buyer''s credit facility of DBS Bank
India Ltd. These Buyers Credit are eligible for roll over for upto 3 years as per RBI guidelines.

c) Secured - Working Capital demand loan of H22,293.31 lacs (31st March,2024 H2,500.00 lacs) is secured against 1st pari passu
charge on current assets of all 6 units located at Joka (WB),Karnal (Haryana),Bacchau (Gujarat),Hoshiarpur (Punjab),Palasbari
(Assam) and Gummidipoondi (Tamil Nadu) carrying rate of interest 7.55% to 8.85% repayable on demand.

d) Loan from Subsidiary Company is repayable on demand and carries interest @ 7.50% (31st March,2024 : 7.50%) p.a.

e) Buyers credit carries interest @ SOFR plus 0.50% to 0.90% p.a. (31st March,2024 : 0.65% to 0.95%) p.a. for raw-materials and
@ SOFR plus 0.75% p.a. to 0.95% p.a. (2023-24 : 0.72% to 0.95%) p.a. for capital expenditure and is repayable in 90-180 days.

f) Rate of Interest for Packing Credit is 6.00% to 8.50% (31st March,2024 : 5.32% to 6.80% )p.a. repayable on maturity.

g) The cash credit is repayable on demand and carries interest @ 7.94% to 8.95% (31st March,2024 : 8.10% to 10.35%) p.a.

h) Unsecured working capital loan of H13,491.42 lacs (31st March, 2024 - H10,295.28 lacs) taken from ICICI and HDFC Bank
carrying rate of interest 7.55% to 8.09% p.a. repayabale on maturity.

i) Borrowings secured against current assets -The Company has filed quarterly returns/revised returns with the banks in lieu of
the sanctioned working capital facilities, which are in agreement with the books of account for the year ended 31st March, 2025
and other than those as set out below for the year ended 31st March, 2024.

32. Gratuity and Other Post Employment Benefit Plans

The Company has a defined benefit gratuity plan. Every employee who has completed five years or more of service is entitled to
Gratuity on terms not less favourable than the provisions of The Payment of Gratuity Act, 1972. The scheme is funded with an
insurance company.

The Company also extends benefit of compensated absences to the employees, whereby they are eligible to carry forward their
entitlement of earned leave for encashment upon retirement/separation. This is an unfunded plan.

The following tables summarise the components of net benefit expense recognised in the statement of profit and loss and the
funded status and amounts recognised in the balance sheet for the Post - retirement benefit plans.

34. Capital Management

The Company''s objective to manage its capital is to ensure continuity of business while at the same time provide reasonable returns
to its various shareholders but keep associated cost under control. In order to achieve this, requirement of capital is reviewed
periodically with reference to operating and business plans that take into account capital expenditure and strategic investments.
Apart from internal accrual, sourcing of capital is done through judicious combination of equity and borrowing, both the short term
and long term. Net debt (total borrowing including lease liabilities) to equity ratio is used to monitor capital.Net Debt Equity Ratio
is computed as - (Long Term Borrowings Short Term Borrowings)/ Total Equity.

# Remuneration of Key Management Personnel represents short term employee benefits, as the liabilities for defined benefit

plans and compensated absences are provided on actuarial basis for the Company as a whole, the amounts pertaining to Key

Management Personnel are not included.

* Pertains to Non Fund Based credit facilities

c) 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 and in the ordinary course of business. Sales / purchases generally include
payment terms of 0 to 60 days from the date of invoice. Trade receivables and Trade payables outstanding balances are
unsecured, interest free and require settlement in cash. No guarantee or other security has been received / given against
these receivables / payables.

2. Outstanding balances at the year-end from related parties are unsecured and interest free.

3. Employee related recoverable balances are unsecured and interest free.

4. The Company has provided loan to its subsidiary for its business activities. The loan was unsecured and was repayable on
demand.The loan carries an interest 31st March,2025 @7.50% p.a.(31st March, 2024 @7.50% p.a.)

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) The fair value hierarchy is based on inputs to valuation techniques that are used to measure fair value that are either observable
or unobservable and consists of the following three levels.

Level 1: Hierarchy includes financial instruments valued using quoted market prices.

Level 2: Hierarchy includes financial instruments that are not traded in active market. These are valued using observable market
data such as yield etc. of similar instruments traded in active market.

Level 3: If one or more significant inputs is not based on observable market data, the instrument is included in level 3.

40. 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.

(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 Company into homogenous Company 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

40. Financial Risk Management-Objectives and Policies (Contd.)

value of trade receivables disclosed in Note 10 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.10 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.

(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.

41. The Company’s Segment Information as at and for the year ended 31st March 2025 are as below:

(Contd.)

(b) The Company recognised revenue at point in time.

(c) Company''s Property Plant and Equipment (PPE) are located only in India. Hence separate figures for same have not been
furnished.

(d) During the year there is no revenue from a single customer which is more than 10% of company''s revenue.

(e) Investment in subsidiaries have been considered as a part of segment assets in line with the reporting to CODM.

42 . The Code on Social Security, 2020 (‘Code'') relating to employee benefits during employment and post-employment benefits,
received Presidential assent in September, 2020. The Code has been published in the Gazette of India. Certain Sections of the
Code came into effect on 3rd May, 2023.However, the final rules/interpretation have not been issued. Based on preliminary
assessment, the Company believes the impact of the change will not be significant

44. Leases

a) The Company has lease contracts for land. The Company''s obligations under leases are secured by the lessor''s title to the
leased assets.

b) The Company has elected to apply IND AS 116 to its leases with modified retrospective approach. Under this approach, the
company 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.

47. During the previous year ended 31st March, 2024, the Company had entered into a sale agreement for sale of shares in one of
its subsidiaries, Century Ply (Singapore) Pte Ltd. Consequently, difference between the carrying value of the investment and
the sale proceeds was recognised as impairment loss amounting to H1,960.00 Lacs in the Statement of Profit and Loss in the
previous year ended 31st March, 2024. The residual book value of investment was classified as “Assets held for sale” as on
31st March, 2024. During the year ended 31st March, 2025, all the shares of subsidiary were sold and transferred for a total
consideration of H766.06 Lacs.

Impairment loss for the quarter and year ended 31st March, 2024, includes H446.00 Lacs on account of investment in subsidiary,
Century Infotech Ltd. which is presently non - operational and whose net worth is substantially eroded.

48. The Company has used multiple accounting software for maintaining its books of account which have a feature of recording
audit trail (edit log) facility except for SAP application where audit trail could not be enabled for technical reason at the
transactional and database level throughout the year for all relevant transactions recorded in the application. Further, for CAPS
Payroll application the audit trail feature is enabled and operating effectively throughout the year for all relevant transactions
recorded in the application and for HONO Payroll application, which is operated by third party software service provider for
maintaining its books of accounts, audit trail is enabled and operated throughout the year for all relevant transactions recorded
in the application based on the Service Organization Controls 2 (SOC-II) report provided in respect of this application.
Furthermore, no instance of audit trail feature being tampered with was noted in respect of accounting software(s) where the
audit trail has been enabled.

Additionally, the audit trail of previous year has been preserved by the Company as per the statutory requirements for record
retention to the extent it was enabled and recorded in the respective year.

49. 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) Century Plyboards (India) Limited has not been declared wilful defaulter by any bank or financial institution or government or
any government authority.

(iii) Century Plyboards (India) Limited 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) Century Plyboards (India) Limited 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) There are no charges or satisfaction which are yet to be registered with the Registrar of Companies beyond the statutory period.

(viii) Relationship with struck off companies

Disclosure related to relationship of the Company with a company which is struck off under Section 248 of the Companies Act,
2013 or Section 530 of Companies Act, 1956 as on 31st March 2025 are as follows:

(ix) Utilisation of Borrowed Fund & Share Premium:

(i) The Company has not advanced or loaned or invested funds (either borrowed funds or share premium or any other
sources or kind of funds) to any other person or entity, including foreign entities (“Intermediaries”) with the understanding
(whether recorded in writing or otherwise) that the Intermediaries shall, whether, directly or indirectly lend or invest in
other persons / entities identified in any manner whatsoever by or on behalf of the Company (‘Ultimate Beneficiaries'') or
provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries, other than loans aggregating H426.68
lakhs given during the year to Century Panels Limited, a subsidiary in the ordinary course of business and in keeping
with the applicable regulatory requirements for onward funding to its certain subsidiaries towards meeting their business
requirements. Accordingly, no further disclosure, in this regard, is given.

(ii) The Company has 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.

50. Subsequent event

The Company has recommended a final dividend of H1.00 per share (100% per share of face value of H1 each) for the financial
year ended 31st March, 2025, subject to shareholders approval at annual general meeting.

51. Previous year''s figures have been rearranged and/or recomputed, wherever necessary.

52 . The financial statements have been approved by the Audit Committee at its meeting held on 29th May, 2025 and by the Board
of Directors on the same date.

As per our attached report of even date

For S.R.Batliboi & Co. LLP For and on behalf of the Board of Directors

Firm Registration No.- 301003E/E300005
Chartered Accountants

Sajjan Bhajanka Sanjay Agarwal

Chairman & Managing Director CEO & Managing Director

DIN:00246043 DIN:00246132

Sanjay Kumar Agarwal
Partner

Membership No. 060352

Place: Kolkata Arun Kumar Julasaria Sundeep Jhunjhunwala

Date: 29th May, 2025 Chief Financial Officer Company Secretary

---

Mar 31, 2024

r. Provisions (other than employee benefits)

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. If the effect of the time value of money is material, provisions are discounted at a current pre-tax rate that reflects the risks specific to the liability. When discounting is used, the increase in the provision due to the passage of time is recognised as a finance cost.

The amortisation or “unwinding” of the discount applied in establishing the provision is charged to the income statement in each accounting period. The amortisation of the discount is shown within finance costs in profit or loss.

s. Contingent Liabilities

Contingent liabilities are disclosed when there is a possible obligation arising from past events, the existence of which will be confirmed only by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the Company or a present obligation that arises from past events where it is either not probable that an outflow of resources will be required to settle the obligation or a reliable estimate of the amount cannot be made. The material accounting policies adopted in preparation of standalone financial statements has been disclosed as below. All accounting policies has been consistently applied to all the period presented in the standalone financial statements unless otherwise stated.

2.4 Use of Estimates and Management Judgements

The preparation of financial statements in conformity with the recognition and measurement principles of Ind AS requires management of the Company to make estimates and judgements that affect the reported balances of assets and liabilities, disclosures of contingent liabilities as at the date of financial statements and the reported amounts of income and expenses for the periods presented. Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimates are revised and future periods are affected.

The Company uses the following critical accounting judgements, estimates and assumptions in preparation of its financial statements:

a. Defined Benefit Plans - The cost of the employment benefits such as gratuity and leave obligation are determined using actuarial valuations. An actuarial valuation involves making various assumptions that may differ from actual developments in the future. These include the determination of the discount rate, future salary increases and mortality rates. Due to the complexities, involved in the valuation and its long-term nature, a defined benefit obligation is highly sensitive to changes in these assumptions. All assumptions are reviewed at each reporting date.

Further details about gratuity obligations are given in note no. 32.

b. Useful lives of depreciable/ amortisable assets (tangible and intangible) - Management reviews its estimate of the useful lives of depreciable/ amortisable assets at each reporting date, based on the expected utility of the assets. Uncertainties in these estimates relate to technical and economic obsolescence that may change the utility of certain software, customer relationships, IT equipment and other plant and equipment (Refer Note No.3).

c. Significant judgments when applying Ind AS 115 - Revenue is recognised upon transfer of control of promised products or services to customers in an amount that reflects the consideration which the Company expects to receive in exchange for those products or services. The application of revenue recognition accounting standards is complex and involves a number of key judgements and estimates. Revenue is measured based on the transaction price, which is the consideration, adjusted for volume discounts, price concessions and incentives, if any, as specified in the contract with the customer/dealer. The Company makes estimates related to customer performance and sales volume to determine the total amounts earned and incentive to be recorded as deductions (Refer Note No.24).

d. Recognition of current tax and deferred tax - The Company uses judgements based on the relevant rulings in the areas of allocation of revenue, costs, allowances, and disallowances which is exercised while determining the provision for income tax. Deferred income tax expense is calculated based on the differences between the carrying value of assets and liabilities for financial reporting purposes and their respective tax basis that are considered temporary in nature. Valuation of deferred tax assets is dependent on management''s assessment of future recoverability of the deferred benefit. Expected recoverability may result from expected taxable income in the future, planned transactions or planned tax optimizing measures. Economic conditions may change and lead to a different conclusion regarding recoverability (Refer Note No.7 and 23).

2.5 Recent Pronouncements:

Ministry of Corporate Affairs (“MCA”) notifies new standards or amendments to the existing standards under Companies (Indian Accounting Standards) Rules as issued from time to time. For the year ended 31st March, 2024, MCA has not notified any new standards or amendments to the existing standards applicable to the Company.

e) Terms/Rights attached to the Equity Shares

The company has only one class of equity shares having par value of H1/- per share. Each holder of equity shares is entitled to one vote per share.

The company declares and pays dividends in Indian rupees. The dividend proposed by the Board of Directors is subject to the approval of shareholders in the Annual General Meeting, except in case of interim dividend.In the event of liquidation of the company, the holders of equity shares will be entitled to receive remaining assets of the company, after distribution of all preferential amounts in proportion to their shareholdings.

f) The Company does not have any Holding/ Ultimate Holding Company. As such, no shares are held by them or their Subsidiaries/ Associates

g) There are NIL (Previous year NIL) shares reserved for issue under option and contracts/commitment for the sale of shares/ disinvestment.

h) During the period of five years immediately preceding the reporting date:

i. No shares were issued for consideration other than cash

ii. No bonus shares were issued

iii. No shares were bought back

i) There are NIL (Previous year NIL) securities convertible into Equity/ Preference Shares.

j) There are NIL (Previous year NIL) calls unpaid including calls unpaid by Directors and Officers as on the balance sheet date.

k) No shares were forfeited during the year or during the previous year.1,38,000 equity shares of H10/-each (post split 13,80,000 equity shares of H1 each) on which H3.54 lacs had been paid up, were forfeited in the year 2001-2002

Capital Reserve:- The reserve was created on slump sale of Container Freight Station, being excess of consideration over net assets in financial year 2022-2023 (Refer Note no.47).

Amalgamation Reserve:- This reserve was created on amalgamation of Shyam Century Ferrous Limited with the company during the financial year 2005-2006

Securities Premium:- This Securities Premium had been created on issue of shares by way of public issue and right issue

General Reserve:- General reserve is created from time to time by way of transfer of profits from retained earnings for appropriation purpose. General reserve is created by a transfer from one component of equity to another and is not an item of other comprehensive income.

Capital Redemption Reserve:- This reserve was created upon redemption of preference shares by company in FY 2012-2013

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.

Notes:-

a) Cash Credit and Buyer''s Credit for raw materials from banks amounting to H6700.75 lacs (31st March, 2023 : H10090.42 lacs) are secured by way of first charge on current assets (both present and future) of the company.

b) Buyer''s Credit for Capex from banks amounting to H10865.29 lacs (31st March, 2023 : H7295.07 lacs) are secured by way of 1st (pari passu) charge on all the Property, Plant and Equipment of the Unit located at Bishnupur West Bengal on pari passu basis with other term lenders.These Buyers Credit are eligible for roll over for upto 3 years as per RBI guidelines.

c) The cash credit is repayable on demand and carries interest @ 8.10% to 10.35% (31st March,2023 : 6.05% to 9.65%) p.a.

d) Loan from Subsidiary Company is repayable on demand and carries interest @ 7.50% (31st March,2023 : N.A) p.a.

e) Buyers credit carries interest @ SOFR plus 0.65% to 0.95% (2022-23 : 0.25% to 0.65%) p.a. for raw-materials and @ SOFR plus 0.72% to 0.95% (2022-23 : 0.75% to 0.90%) p.a. for capital expenditure and is repayable in 90-180 days.

f) Rate of Interest for Packing Credit is 5.32% to 6.80% (2022-23 : 2.08% to 6.55%) p.a.

g) Working Capital demand loan is secured against Ist pari passu charge on current assets of all 6 units located at Joka (WB),Karnal (Haryana),Bacchau (Gujarat),Hoshiarpur (Punjab),Palasbari (Assam) and Gummidipoondi (Tamil Nadu).

34. Capital Management

The Company''s objective to manage its capital is to ensure continuity of business while at the same time provide reasonable returns to its various shareholders but keep associated cost under control. In order to achieve this, requirement of capital is reviewed periodically with reference to operating and business plans that take into account capital expenditure and strategic investments. Apart from internal accrual, sourcing of capital is done through judicious combination of equity and borrowing, both the short term and long term. Net debt (total borrowing less current investment and cash & cash equivalent) to equity ratio is used to monitor capital. No changes were made to the objective, policies or process for managing capital during the year ended 31st March, 2024 and 31st March, 2023.

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) Finance income and finance cost by instrument category wise classification :-

i) Interest income of H2,603.28 Lacs (PY. H2,043.38 Lacs) on financial instrument at amortised cost.

ii) Interest expense of H2,031.14 Lacs (PY. H806.25 Lacs) on borrowing at amortised cost.

3) Investment in subsidiaries are being carried at cost hence not reported.

4) The fair value hierarchy is based on inputs to valuation techniques that are used to measure fair value that are either observable or unobservable and consists of the following three levels.

Level 1: Hierarchy includes financial instruments valued using quoted market prices.

Level 2: Hierarchy includes financial instruments that are not traded in active market. These are valued using observable market data such as yield etc. of similar instruments traded in active market.

Level 3: If one or more significant inputs is not based on observable market data, the instrument is included in level 3. Investment through FVTPL is being valued at level 2 in current year as well as previous year.

40. 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.

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 10 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.10 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.

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, 2024 and 31st March, 2023 are as follows:

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.

44. Leases

a) The Company has lease contracts for land. The Company''s obligations under leases are secured by the lessor''s title to the leased assets.

b) The Company has elected to apply IND AS 116 to its leases with modified retrospective approach. Under this approach, the company 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.

45. During the year, the Company has made a donation to Indian National Congress H500 lacs (previous year NIL) and All India Trinamool Congress H100 lacs (previous year H200 Lakhs) by cheque . The political donation made of H600 Lacs is within the limit specified under section 182(1) of the Companies Act 2013.

46. During the previous year the company had disposed of its entire investment in its wholly owned foreign subsidiary Centuryply Myanmar Private Limited and incurred a loss of H4,925.09 Lacs. The said subsidiary was running a unit in Myanmar for procuring timber from local sources and converting the same to veneer, which is raw material for manufacturing plywood. This unit was meant for ensuring quality raw-material supply for company''s plywood units in India. However due to political disturbances and adverse business situation in Myanmar the subsidiary had to close down its operations and entire investment in subsidiary was disposed off.

47. During the year, the Scheme of Arrangement between the Company and Century Infra Limited (‘Transferee Company'') a wholly owned subsidiary Company and their respective shareholders and creditors under Sections 230 to 232 and other applicable provisions of the Companies Act, 2013 and the rules framed thereunder was approved by the Hon''ble National Company Law Tribunal, Kolkata Bench on 31st January, 2024. As the scheme is effective from appointed date 1st April, 2022 the Company has transferred its Container Freight Station Division (CFS division) to “Transferee Company” with effect from 1st April, 2022, all together with the assets, liabilities and manpower comprised therein on a slump sale basis for a total consideration of H3271 lacs.As per the scheme, The Company has transferred Non current assets (including right of use assets) H4034.00,Current assets H1546.61, Non current liabilities H1738.97 and Current liabilities H1425.52. Consequently previous year figures have been restated by excluding CFS division balances in compliance with the approved scheme.

49. 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) Century Plyboards (India) Limited has not been declared wilful defaulter by any bank or financial institution or government or any government authority.

(iii) Century Plyboards (India) Limited 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) Century Plyboards (India) Limited 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) There are no charges or satisfaction which are yet to be registered with the Registrar of Companies beyond the statutory period.

(xi) Utilisation of Borrowed Fund & Share Premium:

(i) The Company has 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.

(ii) The Company has 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.

50. Subsequent event

The Board of Holding Company has recommended a dividend of H1.00 per share (100% per share of face value of H1 each) for the financial year ended 31st March, 2024, subject to shareholders approval at annual general meeting.

51. Previous year''s figures have been rearranged and/or regrouped, wherever necessary.

52 . The financial statements have been approved by the Audit Committee at its meeting held on 24th May, 2024 and by the Board of Directors on the same date.

As per our attached report of even date

For Singhi & Co. For and on behalf of the Board of Directors

Firm Registration No.- 302049E Chartered Accountants

Sajjan Bhajanka Sanjay Agarwal

Chairman & Managing Director CEO & Managing Director

DIN:00246043 DIN:00246132

Rajiv Singhi

Partner

Membership No. 053518

Place: Kolkata Arun Kumar Julasaria Sundeep Jhunjhunwala

Date: 24th May, 2024 Chief Financial Officer Company Secretary

---

Mar 31, 2023

(vi) The Company has reviewed its income tax treatments in order to determine whether they could have an impact on the financial statements and concluded that it has no material impact on the Company''s financial statements. As a practice, where the interpretation of income tax law is not clear, management relies on the some or all of the following factors to determine the probability of its acceptance by the tax authority:

• Strength of technical and judicial argument and clarity of the legislation;

• Past experience related to similar tax treatments in its own case;

• Legal and professional advice or case law related to other entities. After analysing above factors for each of such uncertain tax treatments, where the Company expects that the probability to sustain its position on ultimate resolution of such uncertain tax treatment is remote, the Company ensures that such uncertain tax positions are adequately provided for in the Company''s financial Statements.

12. Equity Share Capital (contd.)

e) Terms/Rights attached to the Equity Shares

The company has only one class of equity shares having par value of H1/- per share. Each holder of equity shares is entitled to one vote per share.

The company declares and pays dividends in Indian rupees. The dividend proposed by the Board of Directors is subject to the approval of shareholders in the Annual General Meeting, except in case of interim dividend.In the event of liquidation of the company, the holders of equity shares will be entitled to receive remaining assets of the company, after distribution of all preferential amounts in proportion to their shareholdings.

f) The Company does not have any Holding/ Ultimate Holding Company. As such, no shares are held by them or their Subsidiaries/ Associates

g) There are NIL ( Previous year NIL) shares reserved for issue under option and contracts/commitment for the sale of shares/ disinvestment.

h) During the period of five years immediately preceding the reporting date:

i. No shares were issued for consideration other than cash

ii. No bonus shares were issued

iii. No shares were bought back

i) There are NIL (Previous year NIL) securities convertible into Equity/ Preference Shares.

j) There are NIL (Previous year NIL) calls unpaid including calls unpaid by Directors and Officers as on the balance sheet date.

k) No shares were forfeited during the year or during the previous year 1,38,000 equity shares of H10/-each (post split 13,80,000 equity shares of H1 each) on which H3.54 lacs had been paid up, were forfeited in the year 2001-2002

Amalgamation Reserve:- This reserve was created on amalgamation of Shyam Century Ferrous Limited with the company during the financial year 2005-2006

Securities Premium:- This Securities Premium had been created on issue of shares by way of public issue and right issue

General Reserve:-General reserve is created from time to time by way of transfer of profits from retained earnings for appropriation purpose. General reserve is created by a transfer from one component of equity to another and is not an item of other comprehensive income.

Capital Redemption Reserve:- This reserve was created upon redemption of preference shares by company in FY 2012-2013

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.

(a) Foreign currency term loan of H NIL (31^st March, 2022 : H1594.56 Lacs) carries interest @6 months SOFR 1.30% p.a (31^st March, 2022 @6 months SOFR 1.30% p.a.). The loan is repayable in 16 quarterly installments by 31^st March, 2023 and is secured/to be secured by 1^st charge on all the fixed assets pertaining to the Plywood Unit at Bishnupur, West Bengal on pari passu basis with other term lenders.

(b) Foreign currency term loan of H NIL Lacs (31^st March, 2022 : H852.86 lacs) carries interest @ 6 Months SOFR 1.25% p.a. (31^st March, 2022 @ 6 Months SOFR 1.25% p.a.). The Loan is repayable in 16 equal quarterly instalments commencing from January 2019 & ending by October 2022 and is secured/to be secured by 1^st charge on all the Fixed Assets of the Plywood Unit at Bishnupur West Bengal on pari passu basis with other term lenders.

(c) Auto,Car/Vechicle loans are secured by hypothecation of the assets purchased there against and carry interest between 7.25% p.a to 8.50% p.a (7.25% to 9.05%p.a)

a) Cash Credit and Buyer''s Credit from banks amounting to H10090.42 lacs (31^st March, 2022 : H6826.79 lacs ) are secured by way of first charge on current assets (both present and future) of the company.

b) Buyer''s Credit for Capex from banks amounting to H7295.07 lacs (31^st March, 2022 : H5580.54 lacs ) are secured by way of 1^st charge on all the Fixed Assets of the Unit located at Bishnupur West Bengal on pari passu basis with other term lenders.

c) The cash credit is repayable on demand and carries interest @ 6.05% to 9.65% (31^st March,2022 : 6.05% to 7.40% ) p.a.

d) Buyers credit carries interest @ SOFR plus 0.25% to 0.65% (2021-22 : 0.45% to 1.99%) p.a. for raw-materials and @ SOFR plus 0.75% to 0.90% (2021-22 : 0.25% to 0.77%) p.a. for capital expenditure and is repayable in 90-180 days.

e) Rate of Interest for Packing Credit is 2.08% to 6.55% p.a (2021-22 : 1.05% to 4.65% p.a.)

32. Gratuity and Other Post Employment Benefit Plans

The Company has a defined benefit gratuity plan. Every employee who has completed five years or more of service is entitled to Gratuity on terms not less favourable than the provisions of The Payment of Gratuity Act, 1972. The scheme is funded with an insurance company.

The Company also extends benefit of compensated absences to the employees, whereby they are eligible to carry forward their entitlement of earned leave for encashment upon retirement/separation. This is an unfunded plan.

The following tables summarise the components of net benefit expense recognised in the statement of profit and loss and the funded status and amounts recognised in the balance sheet for the Post - retirement benefit plans.

(ii) Contingent Liabilities		(H in Lacs)
Demands/Claims by various Government Authorities and Others not	As on	As on
acknowledged as Debt:	31st March, 2023	31st March, 2022
Excise Duty/Service Tax [Amount deposited : H51.82 Lacs(PY. H51.82 Lacs)]	894.98	978.12
Sales Tax / VAT*[Amount deposited : H1.19 Lacs(PY. H1.38 Lacs)]	31.16	33.03
Income Tax	1,452.57	1,428.58
Channel Financing to Dealers & Distributors**	832.89	960.21
Un-Redeemed Bank Guarantees	699.43	739.14
Corporate Guarantee for Subsidiaries	30,000.00	-
* Contingent amount includes tax amount and interest quantified in the assessment order. ** Reported to the extent balance outstanding amounting to H3,615.60 Lacs (PY. H5,004.00 Lacs) against Guarantees issued.

34. Capital Management

The Company''s objective to manage its capital is to ensure continuity of business while at the same time provide reasonable returns to its various shareholders but keep associated cost under control. In order to achieve this, requirement of capital is reviewed periodically with reference to operating and business plans that take into account capital expenditure and strategic investments. Apart from internal accrual, sourcing of capital is done through judicious combination of equity and borrowing, both the short term and long term. Net debt (total borrowing less current investment and cash & cash equivalent) to equity ratio is used to monitor capital. No changes were made to the objective, policies or process for managing capital during the year ended 31^st March, 2023 and 31^st March, 2022.

40. 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.

(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 10 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 10 for ageing of trade receivable as of 31^st March, 2023 and 31^st 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.

42 . The Indian Parliament has approved the Code on Social Security, 2020 which would impact the contributions by the company towards Provident Fund and Gratuity. The Ministry of Labour and Employment has released draft rules for the Code on Social Security, 2020 on 13^th November, 2020, and has invited suggestions from stakeholders which are under active consideration by the Ministry. The Company will assess the impact of the Code when it comes into effect and will record any related impact in the period when the Code becomes effective.

44. Leases

a) The Company has lease contracts for land. The Company''s obligations under leases are secured by the lessor''s title to the leased assets.

b) The Company has elected to apply IND AS 116 to its leases with modified retrospective approach. Under this approach, the company 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.

f) The weighted average incremental borrowing rate of 10% has been applied to lease liabilities recognised in the Balance Sheet.

45. Charity and Donations includes H200.00 Lacs (PY.:H100.00 Lacs) paid to political parties.

46. During the year the company has disposed of its entire investment in its 100% owned foreign subsidiary Centuryply Myanmar Private Limited and incurred a loss of H4,925.09 Lacs. The said subsidiary was running a unit in Myanmar for procuring timber from local sources and converting same to veneer, which is raw material for manufacturing plywood. Thus unit was meant for ensuring quality raw-material supply for company''s plywood units in India. However due to political disturbances and adverse business situation in Myanmar the subsidiary had to close down its operations and entire investment in subsidiary is disposed off.

47. The Scheme of Arrangement between the Company and Century Infra Limited and their shareholders and creditors under Sections 230 to 232 and other applicable provisions of the Companies Act, 2013, and rules framed thereunder (“Scheme of Arrangement” or “Scheme”) was approved by the Board of Directors of the Company at their meeting on 20^th July, 2022. The Scheme, inter alia, provides for transfer of the Container Freight Station Services Undertaking (as defined in the Scheme) from the Company to Century Infra Limited, a wholly owned subsidiary of the Company, as a going concern on slump sale basis for a lump sum consideration on the terms and conditions as detailed in the Scheme. The Appointed Date for the Scheme is 1^st April, 2022.

The Company received the Observation Letter dated 10^th October, 2022 from both the Stock Exchanges i.e. BSE Limited and National Stock Exchanges of India Limited whereby the exchanges have given their in-principal approval with ‘No adverse observations'' / ‘No Objection'' remarks on the Scheme. Upon receipt of Observation Letter from Stock Exchanges, the Scheme was filed with National Company Law Tribunal, Kolkata Bench (NCLT). Pursuant to the NCLT Order dated 10^th February 2022, respective meetings of Shareholders and Unsecured Creditors of the Company were held on 20^th March, 2023 whereby the Scheme was approved with requisite majority.

The Company petition for sanctioning the Scheme has been filed with the Hon''ble NCLT, Kolkata Bench and is subject to requisite statutory and regulatory approval. Pending such approvals, no accounting effect of the above-mentioned Scheme has been given in the financial statements for the year ended 31^st March, 2023.

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) Century Plyboards (India) Limited has not been declared wilful defaulter by any bank or financial institution or government or any government authority.

(iii) Century Plyboards (India) Limited 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 31^st March, 2023 and 31^st March, 2022 which needs to be recorded in the books of account.

(v) Century Plyboards (India) Limited 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) There are no charges or satisfaction which are yet to be registered with the Registrar of Companies beyond the statutory period.

(ix) During the year ended 31^st March, 2023 the Company has provided Loans to 3 subsidiaries amounting to H19073 Lacs (H2089.77 Lacs), which is repayable on demand total amount outstanding on 31^st March, 2023 is H10874 Lacs (H NIL) which represent 97.75% (NIL) of the total Loans.

(x) As explained in note no.47 the Company has filed a company petition with Hon''ble National Company Law Tribunal (NCLT), Kolkata Bench on 31^st March, 2023 with respect to the Scheme of Arrangement between the Company (‘Transferor Company'') and its wholly owned subsidiary i.e. Century Infra Limited (‘Transferee Company'') and their respective shareholders and creditors which is pending for approval by the Hon''ble NCLT. The financial statements of the Company have been prepared without giving impact of the Scheme of Arrangement as the approval of Hon''ble NCLT is awaited. The Scheme will be given effect on receipt of requisite regulatory approvals and filing of such approvals with the Registrar of Companies.

(xi) Utilisation of Borrowed Fund & Share Premium:

(i) The Company has 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.

(ii) The Company has 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.

49. Subsequent event

The Board has recommended a dividend of H1.00 per share (100% per share of face value of H1 each) for the financial year ended 31^st March, 2023, subject to shareholders approval at annual general meeting.

50. Previous year''s figures have been rearranged and/or regrouped, wherever necessary.

51 . The financial statements have been approved by the Audit Committee at its meeting held on 15^th May, 2023 and by the Board of Directors on the same date.

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Mar 31, 2022

a) There are no projects as on the reporting period which have exceeded its cost as compared to its original plan or where completion is overdue.

b) During the Current period ending 31st March, 2022, the company is not having any Intangible assets under development. Nil in Previous period ending 31st March, 2021.

a) Contractual commitments for acquisition of Property, Plant & Equipments is disclosed in Refer Note No. 33(i)

b) For assets pledged against borrowings Refer Note No. 14 & 17

c) Company has not revalued its Property, Plant & Equipment during the period ending 31st March, 2022 and also during the previous period ending 31st March, 2021.

d) The Company does not have any Immovable Property whose title deeds are not held in the name of the company during the period ending 31st March, 2022 and also as on 31st March, 2021.

e) Company has not revalued its Intangible assets during the year ended 31st March, 2022 and also during the previous year ended 31st March, 2021

f) Company is not having any intangible assets under development during the current year ended 31st March, 2022 and previous year ended 31st March, 2021

g) Capital work in progress during the year mainly comprises plant & machinery and building, related to expansion project (PY. normal capex expenditure related to plant & machinery).

(vi) The Company has adopted tax regime announced under Section 115BAA of the Income Tax Act, 1961. Accordingly the provision for current tax and deferred tax for the current year has been determined at the rate of 25.17%. The deferred tax assets and deferred tax liability as on 1st April, 2021 has been restated at rate of 25.17% and the unutilised Minimum Alternate Tax credit as on 31st March, 2021 has been written off. As a result the tax expenses for the year ended 31st March, 2022, is higher by H630.33 lacs.

(vii) The Company has reviewed its income tax treatments in order to determine whether they could have an impact on the financial statements and concluded that it has no material impact on the Company''s financial statements. As a practice, where the interpretation of income tax law is not clear, management relies on the some or all of the following factors to determine the probability of its acceptance by the tax authority:

• Strength of technical and judicial argument and clarity of the legislation;

• Past experience related to similar tax treatments in its own case;

• Legal and professional advice or case law related to other entities. After analysing above factors for each of such uncertain tax treatments, where the Company expects that the probability to sustain its position on ultimate resolution of such uncertain tax treatment is remote, the Company ensures that such uncertain tax positions are adequately provided for in the Company''s financial Statements.

(viii) The Company has utilised MAT credit of H1,171.59 lacs in the tax return filed for FY. 2019-20 during the year ended 31st March, 2021 and H2,823.57 lacs MAT credit utilised in the income tax return filled for FY 2020-21 during the year ended 31st March, 2022 and adjusted with tax liability of respective years.

e) Terms/Rights attached to the Equity Shares

The company has only one class of equity shares having par value of H1/- per share. Each holder of equity shares is entitled to one vote per share.

12. Equity Share Capital (contd.)

The company declares and pays dividends in Indian rupees. The dividend proposed by the Board of Directors is subject to the approval of shareholders in the Annual General Meeting, except in case of interim dividend.In the event of liquidation of the company, the holders of equity shares will be entitled to receive remaining assets of the company, after distribution of all preferential amounts in proportion to their shareholdings.

f) The Company does not have any Holding/ Ultimate Holding Company. As such, no shares are held by them or their Subsidiaries/ Associates.

g) There are NIL ( Previous year NIL) shares reserved for issue under option and contracts/commitment for the sale of shares/ disinvestment.

h) During the period of five years immediately preceding the reporting date:

i. No shares were issued for consideration other than cash

ii. No bonus shares were issued

iii. No shares were bought back

i) There are NIL (Previous year NIL) securities convertible into Equity/ Preference Shares.

j) There are NIL (Previous year NIL) calls unpaid including calls unpaid by Directors and Officers as on the balance sheet date.

k) No shares were forfeited during the year or during the previous year.1,38,000 equity shares of H10/-each (post split 13,80,000 equity shares of H1 each) on which H3.54 lacs had been paid up, were forfeited in the year 2001-2002

Amalgamation Reserve:- This reserve was created on amalgamation of Shyam Century Ferrous Limited with the company during the financial year 2005-2006.

Securities Premium :- This Securities Premium had been created on issue of shares by way of public issue and right issue.

General Reserve:-General reserve is created from time to time by way of transfer of profits from retained earnings for appropriation purpose. General reserve is created by a transfer from one component of equity to another and is not an item of other comprehensive income.

Capital Redemption Reserve:- This reserve was created upon redemption of preference shares by company in FY 2012-2013.

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.

(a) Foreign currency term loan of H1,594.56 Lacs ( 31st March, 2021 : H3,091.93) carries interest @6 months LIBOR 1.30% p.a (31st March, 2021 @6 months LIBOR 1.30% p.a.). The loan is repayable in 16 unequal quarterly installments by 31st March, 2023 and is secured/to be secured by 1st charge on all the fixed assets pertaining to the Plywood Unit at Bishnupur, West Bengal on pari passu basis with other term lenders.

(b) Foreign currency term loan of H852.86 Lacs ( 31st March, 2021 : H1,929.38 lacs) carries interest @ 6 Months LIBOR 1.25% p.a. ( 31st March, 2021 @ 6 Months LIBOR 1.25% p.a.). The Loan is repayable in 16 equal quarterly instalments commencing from January 2019 & ending by October 2022 and is secured/to be secured by 1st charge on all the Fixed Assets of the Plywood Unit at Bishnupur, West Bengal on pari passu basis with other term lenders.

(c) Auto,Car/Vechicle loans are secured by hypothecation of the assets purchased there against and carry interest between 7.25% p.a to 9.05% p.a (8.41% to 9.90%p.a)

a) Cash Credit and Buyer''s Credit from banks amounting to H6,826.79 lacs (31st March, 2021 : H2,271.35 lacs ) are secured by way of first charge on current assets (both present and future) of the company.

b) Buyer''s Credit for Capex from banks amounting to H5,580.54 lacs (31st March, 2021 : HNIL ) are secured by way of 1st charge on all the Fixed Assets of the Unit located at Bishnupur, West Bengal on pari passu basis with other term lenders.

c) The cash credit is repayable on demand and carries interest @ 6.05% to 7.40% (31st March,2021 : 7.05% to 8.35% ) p.a.

d) Buyers credit carries interest @ LIBOR plus 0.45% to 1.99% p.a for raw-materials and @LIBOR plus 0.25% to 0.77% for capital expenditure (2020-21 0.90% to 1.55% p.a for raw-materials) and is repayable in 90-180 days.

e) Rate of Interest for Packing Credit is 1.05% to 4.65% p.a (2020-21 1.10% to 5.00% p.a.)

f) Rate of Interest for unsecured loan from Directors & Bodies Corporate is 5.00% p.a (2020-21 5.00% p.a.)

g) Borrowings secured against current assets -The Company has filed quarterly returns or statements with the banks in lieu of the sanctioned working capital facilities, which are in agreement with the books of account other than those as set out below

The Company had challenged the legal validity of levy of the Entry Tax before Calcutta High Court and the matter was subsequently transferred to the West Bengal Taxation Tribunal. The Tribunal, vide its order dated 25.03.2022 in the case of Tata Steel Ltd. & Ors. vs. The State of West Bengal & Ors., has held that the levy of Entry Tax in the State of West Bengal is unconstitutional.In all probability, the department will be pursuing the issue before Hon''ble High Court now, pending the decision of which, this liability will still be required to be considered as a payable to the Government.

The Company has a defined benefit gratuity plan. Every employee who has completed five years or more of service is entitled to Gratuity on terms not less favourable than the provisions of The Payment of Gratuity Act, 1972. The scheme is funded with an insurance company.

The Company also extends benefit of compensated absences to the employees, whereby they are eligible to carry forward their entitlement of earned leave for encashment upon retirement/separation. This is an unfunded plan.

The following tables summarise the components of net benefit expense recognised in the statement of profit and loss and the funded status and amounts recognised in the balance sheet for the Post - retirement benefit plans.

X. Contribution to Defined Benefit Plan

In 2022-23 the Company expects to contribute H516.30 Lacs (2020-21: H432.72 Lacs) to gratuity. b) Defined Contribution Plan

The company''s contribution towards Provident Fund is debited to statement of profit and loss and managed by Central Government. Contribution to Provident and Other Funds includes H1,320.97 lacs (2020-21 - H1,151.95 lacs) paid towards Defined Contribution Plans.

33.	Commitments and Contingencies
(i)	Capital and Other Commitments		(H in Lacs)
		As on	As on
		31st March, 2022	31st March, 2021
	Commitment for Acquisition of Property, Plant & Equipment (Net of Advance)	5,586.55	9,477.58
	Letter of Credit issued by Banks	2,312.05	3,034.31
(ii)	Contingent Liabilities		(H in Lacs)
		As on	As on
		31st March, 2022	31st March, 2021
	Demands/Claims by various Government Authorities and Others not acknowledged as Debt:
	Excise Duty/Service Tax [Amount deposited : H51.82 lacs(PY. H36.36)]	978.12	814.07
	Sales Tax / VAT/Entry Tax*	31.65	643.65
	Income Tax	1,428.58	639.60
	Channel Financing to Dealers & Distributors**	960.21	831.86
	Un-Redeemed Bank Guarantees	739.14	712.41
	Bills Discounted with Banks	-	41.40

* Contingent amount includes tax amount and interest quantified in the assessment order.

** Reported to the extent balance outstanding against Guarantees issued amounting to H5,004.00 Lacs (PY. H5,057.00 lacs)

34. Exceptional Item - Expenses

Exceptional item of H1,181.04 lacs for the period ended 31st March, 2021, represents reversal of refund of 50% of differential excise duty paid in cash, for its plywood unit in north-east India, claimed earlier on the basis of favourable decision by Hon''ble Guwahati High Court, which was passed relying on the decision by Hon''ble Supreme Court in the case of M/s VVF Limited & others versus the Union of India. However, the Hon''ble Supreme Court, vide its judgement dated 22nd April, 2020 has reversed its earlier decision in the case of M/s VVF Limited, mentioned herein, and allowed the subsequent and amended notifications issued by revenue authority which replaced the 100% excise duty refund benefit as envisaged in original notification no. 20/2007, with refund equivalent to specified percentage of excise duty payable based on value addition and held that the amended notifications was clarificatory in nature and is not hit by doctrine of promissory estoppel. Further, based on the legal advice obtained by the Company from External Counsel, as well as its own assessment, there is likelihood of the Company''s appeal being not considered and consequent liability may arise for refund/reversal of amount so received/provided. Accordingly, income which was previously recognized in the books of accounts is reversed.

35. Capital Management

The Company''s objective to manage its capital is to ensure continuity of business while at the same time provide reasonable returns to its various shareholders but keep associated cost under control. In order to achieve this, requirement of capital is reviewed periodically with reference to operating and business plans that take into account capital expenditure and strategic investments. Apart from internal accrual, sourcing of capital is done through judicious combination of equity and borrowing, both the short term and long term. Net debt (total borrowing less current investment and cash & cash equivalent) to equity ratio is used to monitor capital. No changes were made to the objective, policies or process for managing capital during the year ended 31st March, 2022 and 31st March, 2021.

39. Related Party Disclosure: (contd.)

(c) 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. Employee related recoverable balances are unsecured and interest free

4. The Company has provided loan to its subsidiary for its business activities. The loan was unsecured and was repayable on demand.The loan carries an interest @10.00% p.a.

5. The Company has taken loan from Enterprises owned/influenced by Key Management Personnel (KMP) or their relatives as well as from KMP''s. The loan was unsecured and was repayable on demand.The loan carries an interest @ 5.00% p.a.

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) Finance income and finance cost by instrument category wise classification :-

i) Interest income of H1,036.03 Lacs (PY H94.02 Lacs) on financial instrument at amortised cost.

ii) Interest expense of H472.20 Lacs (PY. H937.48 Lacs) on borrowing at amortised cost.

3) Investment in subsidiaries are being carried at cost hence not reported.

4) Investment through FVTPL is being valued at level 2 in current year as well as previous year.

41. 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.

(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 10 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 10 for ageing of trade receivable as of 31st March, 2022 and 31st March, 2021.

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.

42. The Company''s Segment Information as at and for the year ended 31st March, 2022 are as below: (contd.)

Plywood - Plywood, Block-Board, Veneer & Timber

Laminate - Decorative Laminates

MDF - Plain & Pre-laminated Medium Density Fibre Boards

Plain Particle Board - Plain & Pre-laminated Particle Board

CFS Services - Container Freight Stations services

Others - Mainly Trading of Chemicals and New Age Panel Products

(b) The Company recognised revenue at point in time.

(c) Company''s Property Plant and Equipment (PPE) are located only in India. Hence separate figures for same have not been furnished.

(d) During the year there is no revenue from a single customer which is more than 10% of company''s revenue.

(e) Investment in subsidiaries have been considered as a part of segment assets in line with the reporting to CODM

43. The Indian Parliament has approved the Code on Social Security, 2020 which would impact the contributions by the company towards Provident Fund and Gratuity. The Ministry of Labour and Employment has released draft rules for the Code on Social Security, 2020 on 13th November, 2020, and has invited suggestions from stakeholders which are under active consideration by the Ministry. The Company will assess the impact of the Code when it comes into effect and will record any related impact in the period when the Code becomes effective.

45. Leases

a) The Company has lease contracts for land. The Company''s obligations under leases are secured by the lessor''s title to the leased assets.

b) The Company has elected to apply IND AS 116 to its leases with modified retrospective approach. Under this approach, the company has recognised lease liabilities and corresponding right of use assets. In the statement of profit and loss for the year ended, operating lease expenses which were recognised as other expenses in the previous periods is now recognised as depreciation expenses on right of use assets and finance cost for interest accrued on such lease liability.

f) The weighted average incremental borrowing rate of 10% has been applied to lease liabilities recognised in the Balance Sheet.

46. Charity and Donations includes H100.00 Lacs (PY.2020-21:H553.81 Lacs) paid to political parties.

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) Century Plyboards (India) Limited has not been declared wilful defaulter by any bank or financial institution or government or any government authority.

(iii) Century Plyboards (India) Limited 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, 2022 and 31st March, 2021 which needs to be recorded in the books of account.

(v) Century Plyboards (India) Limited 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) There are no charges or satisfaction which are yet to be registered with the Registrar of Companies beyond the statutory period.

(ix) During the period ending 31st March, 2022 the Company did not provide any Loans or advances in the nature of Loan which remained outstanding (repayable on demand or without specifying any terms or period of repayment) to specified persons (Nil as on 31st March, 2021.)

(x) The Company has not entered into any scheme of arrangements which has an accounting impact on current or previous financial year.

(xi) Utilisation of Borrowed Fund & Share Premium:

(i) 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.

(ii) 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.

48. Previous year''s figures have been rearranged and/or regrouped, wherever necessary.

49. The financial statements have been approved by the Audit Committee at its meeting held on 16th May, 2022 and by the Board of Directors on the same date.

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Mar 31, 2021

(vii) The Taxation Law (Amendments) Act 2019, in India provides an option to domestic companies to pay income-tax at a lower rate of 22% (plus applicable surcharge and cess) instead of the normal rate of 30% (plus applicable surcharge and cess) depending on the conditions specified in this behalf under section 115 BAA of the Income Tax Act, 1961. A domestic company can avail of the lower tax rate only if it opts for not availing of certain exemptions or incentives specified in this behalf in the Act. There is no time limit prescribed under the above to choose the option of lower tax rate under section 115BAA, however, once chosen it is irreversible. The Company has made an assessment of the impact of Act and decided to continue with the existing tax structure until the utilisation of MAT credit entitlement and tax incentives available to the Company. In compliance with the accounting standards, the Company has evaluated the outstanding deferred tax liability and written back an amount of H106.46 (H759.00) lacs to the statement of profit and loss accounts on account of re-measurement of deferred tax liability that is expected to reverse in future when the Company would migrate to the new tax regime.

(viii) The Company has reviewed its income tax treatments in order to determine whether they could have an impact on the financial statements and concluded that it has no material impact on the Company''s financial statements. As a practice, where the interpretation of income tax law is not clear, management relies on the some or all of the following factors to determine the probability of its acceptance by the tax authority: • Strength of technical and judicial argument and clarity of the legislation; • Past experience related to similar tax treatments in its own case; • Legal and professional advice or case law related to other entities. After analysing above factors for each of such uncertain tax treatments, where the Company expects that the probability to sustain its position on ultimate resolution of such uncertain tax treatment is remote, the Company ensures that such uncertain tax positions are adequately provided for in the Company''s financial Statements.

c) Terms/Rights attached to the Equity Shares

The company has only one class of equity shares having par value of HI/- per share. Each holder of equity shares is entitled to one vote per share.

The company declares and pays dividends in Indian rupees. The dividend proposed by the Board of Directors is subject to the approval of shareholders in the Annual General Meeting, except in case of interim dividend.In the event of liquidation of the company, the holders of equity shares will be entitled to receive remaining assets of the company, after distribution of all preferential amounts in proportion to their shareholdings.

d) The Company does not have any Holding/ Ultimate Holding Company. As such, no shares are held by them or their Subsidiaries/ Associates.

As per records of the Company, including its register of members as at 31st March, 2021, the above shareholding represents legal ownerships of shares.

f) There are NIL ( Previous year NIL) shares reserved for issue under option and contracts/commitment for the sale of shares/ disinvestment.

g) During the period of five years immediately preceding the reporting date:

i. No shares were issued for consideration other than cash

ii. No bonus shares were issued

iii. No shares were bought back

h) There are NIL (Previous year NIL) securities convertible into Equity/ Preference Shares.

i) There are NIL (Previous year NIL) calls unpaid including calls unpaid by Directors and Officers as on the balance sheet date.

j) No shares were forfeited during the year or during the previous year. 1,38,000 equity shares of H10/-each (post split 13,80,000 equity shares of H1 each) on which H3.54 lacs had been paid up, were forfeited in the year 2001-2002

Amalgamation Reserve:- This reserve was created on amalgamation of Shyam Century Ferrous Limited with the company during the financial year 2005-2006

Securities Premium Reserve:- This reserve had been created on issue of shares by way of public issue and right issue

General Reserve:-General reserve is created from time to time by way of transfer of profits from retained earnings for appropriation purpose. General reserve is created by a transfer from one component of equity to another and is not an item of other comprehensive income.

Capital Redemption Reserve:- This reserve was created upon redemption of preference shares by company in FY 2012-2013

(a) Foreign currency term loan of H 3091.93 Lacs ( 31st March 2020 : H4757.17) carries interest @6 months LIBOR 1.30% p.a (31st March, 2020 @6 months LIBOR 1.30% p.a.). The loan is repayable in 16 unequal quarterly installments by 31st March 2023 and is secured/to be secured by 1st charge on all the fixed assets pertaining to the Plywood Unit at Bishnupur, West Bengal on pari passu basis with other term lenders.

(b) Foreign currency term loan of H1929.38 Lacs ( 31st March, 2020 : H3109.83 lacs) carries interest @ 6 Months LIBOR 1.25% p.a. ( 31st March, 2020 @ 6 Months LIBOR 1.25% p.a.). The Loan is repayable in 16 equal quarterly instalments commencing from January 2019 & ending by October 2022 and is secured/to be secured by 1st charge on all the Fixed Assets of the Plywood Unit at Bishnupur, West Bengal on pari passu basis with other term lenders.

(c) Auto,Car/Vechicle loans are secured by hypothecation of the assets purchased there against and carrying interest between 8.41% p.a to 9.90% p.a (8.41% to 9.90%p.a).

15. Other Financial Liabilities

a) Cash Credit and Buyer''s Credit from banks amounting to H2271.35 lacs (31st March, 2020 : H3519.04 lacs) are secured by way of first charge on current assets (both present and future) of the company.

b) The cash credit is repayable on demand and carries interest @ 7.05% to 8.35% (31st March,.2020 : 8.25% to 9.85% ) p.a.

c) Buyers credit carries interest @ LIBOR plus 0.90% to 1.55% p.a (2019-20 0.90% to 1.75% p.a) and is repayable in 90-180 days.

d) Rate of Interest for Packing Credit is 1.10% to 5.00% p.a (2019-20 3.75% to 5.75% p.a.)

e) Rate of Interest for unsecured loan from Directors & Bodies Corporate is 5.00% p.a (2019-20 5.00% p.a.)

32. Gratuity and Other Post Employment Benefit Plans

The Company has a defined benefit gratuity plan. Every employee who has completed five years or more of service is entitled to Gratuity on terms not less favourable than the provisions of The Payment of Gratuity Act, 1972. The scheme is funded with an insurance company.

The Company also extends benefit of compensated absences to the employees, whereby they are eligible to carry forward their entitlement of earned leave for encashment upon retirement/separation. This is an unfunded plan.

The following tables summarise the components of net benefit expense recognised in the statement of profit and loss and the funded status and amounts recognised in the balance sheet for the Post - retirement benefit plans.

35. Exceptional Item - Expenses

Exceptional item of H1,181.04 lacs for the period ended 31st March,2021, represents reversal of refund of 50% of differential excise duty paid in cash, for its plywood unit in north-east India, claimed earlier on the basis of favourable decision by Hon''ble Guwahati High Court, which was passed relying on the decision by Hon''ble Supreme Court in the case of M/s V.V.F Limited & others versus the Union of India. However, the Hon''ble Supreme Court, vide its judgement dated 22nd April 2020 has reversed its earlier decision in the case of M/s V.V.F Limited, mentioned herein, and allowed the subsequent and amended notifications issued by revenue authority which replaced the 100% excise duty refund benefit as envisaged in original notification no. 20/2007, with refund equivalent to specified percentage of excise duty payable based on value addition and held that the amended notifications was clarificatory in nature and is not hit by doctrine of promissory estoppel. Further, based on the legal advice obtained by the Company from External Counsel, as well as its own assessment, there is likelihood of the Company''s appeal being not considered and consequent liability may arise for refund/reversal of amount so received/provided. Accordingly, income which was previously recognized in the books of accounts is reversed.

36. Capital Management

The Company''s objective to manage its capital is to ensure continuity of business while at the same time provide reasonable returns to its various shareholders but keep associated cost under control. In order to achieve this, requirement of capital is reviewed periodically with reference to operating and business plans that take into account capital expenditure and strategic investments. Apart from internal accrual, sourcing of capital is done through judicious combination of equity and borrowing, both the short term and long term. Net debt (total borrowing less current investment and cash & cash equivalent) to equity ratio is used to monitor capital. No changes were made to the objective, policies or process for managing capital during the year ended 31st March, 2021 and 31st March, 2020.

40. The Company has paid anti-dumping duty till date amounting to H176.66 lacs (Till 31st March 2020: H176.66 lacs) on import of phenol which in opinion of the management and based on a legal opinion, is in excess of actual margin of dumping of said materials and accordingly refundable in terms of Section 9AA of Custom Tariff Act, 1975 and hence the same is considered as receivable and included under the head Note no. 8 on "Other Current Assets".

41. (c) Terms and conditions of transactions with related parties

1. The sales to/ purchases from/ services availed from/ and 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. Employee related recoverable balances are unsecured and interest free

4. The Company has provided loan to its subsidiary for its business activities. The loan was unsecured and was repayable on demand. The loan outstanding as on 31st March, 2021 carries an interest@10% p.a.

5. The Company has taken loan from Enterprises owned/influenced by Key Management Personnel (KMP) or their relatives as well as from KMP''s.

The loan was unsecured and was repayable on demand. The loan carried an interest @5.00% p.a.

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) Finance income and finance cost by instrument category wise classification :-

i) Interest income of H94.02 Lacs (P.Y.H110.66 Lacs) on financial instrument at amortised cost.

ii) Interest expense of H937.48 Lacs (P.Y. H2,711.22 Lacs) on borrowing at amortised cost.

43. Impairment Loss on Investment in Subsidiary

During the previous year, consequent to restrictions on production of semi-finished product by the Laos Government, the foreign subsidiaries including step down subsidiaries have recognised the impairment loss of H6,381.00 lacs on assets including inventories on the basis of recoverable value estimated by the management. Accordingly the Company has recognised impairment loss of H4,563.27 lacs on investment in a foreign subsidiary in its books of accounts after taking out share of impairment loss relating to non-controlling interest and same is reflected in segment results of Plywood and allied segment. During the year Company has conducted impairment testing and concluded that no further impairment of investment in foreign subsidiary is required.

44. 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 two types of risk: 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, trade payables, trade receivables, etc.

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:

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 analyzed 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 10 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.

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 2021 and 31st March 2020 are as follows:

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.

(iv) Other Risk-Impact of the COVID 19 pandemic

The outbreak of Coronavirus (COVID-19) pandemic globally and in India is causing significant disturbance and slowdown of economic activity. The Company''s operations and revenue during the period were also impacted due to COViD-19. The Company has made detailed assessment of its liquidity position for a period of at least one year from the balance sheet date, of the recoverability and carrying values of its assets comprising property, plant and equipment, Intangible assets, Trade Receivables, Inventory, investments, other current and non-current assets and ability to pay its liabilities as they become due and effectiveness

44. Financial Risk Management-Objectives and Policies (contd)

of internal financial controls at the balance sheet date, and has concluded that there are no material impact or adjustments required in the financial statements and does not anticipate any challenge in the Company''s ability to continue as a going concern. The impact of the pandemic may be different from that estimated as at the date of approval of these results and the management continues to closely monitor any material changes to future economic conditions.

Notes:

(a) Business Segments: The reportable segments have been identified on the basis of the products of the Company. Operating Segment disclosed are consistent with the information provided to and reviewed by the Chief Operating Decision Maker (CODM). Accordingly, the Company has identified following business segments:

Plywood - Plywood, Block-Board, Veneer & Timber

Laminate - Decorative Laminates

MDF - Plain & Pre-laminated Medium Density Fibre Boards

Particle Board - Plain & Pre-laminated Particle Board

CFS Services - Container Freight Stations services

Others - Mainly Trading of Chemicals and New Age Panel Products

(b) The Company recognised revenue at point in time.

(c) Company''s Property Plant and Equipment (PPE) are located only in India. Hence separate figures for same have not been furnished.

(d) During the year there is no revenue from a single customer which is more than 10% of company''s revenue.

(e) Investment in subsidiaries have been considered as a part of segment assets in line with the reporting to CODM

46. The Indian Parliament has approved the Code on Social Security, 2020 which would impact the contributions by the company towards Provident Fund and Gratuity. The Ministry of Labour and Employment has released draft rules for the Code on Social Security, 2020 on November 13, 2020, and has invited suggestions from stakeholders which are under active consideration by the Ministry. The Company will assess the impact of the Code when it comes into effect and will record any related impact in the period when the Code becomes effective.

48. Leases

a) The Company has lease contracts for land. The Company''s obligations under leases are secured by the lessor''s title to the leased assets.

b) The Company has elected to apply IND AS 116 to its leases with modified retrospective approach. Under this approach, the company has recognised lease liabilities and corresponding right of use assets. In the statement of profit and loss for the year ended, operating lease expenses which were recognised as other expenses in the previous periods is now recognised as depreciation expenses on right of use assets and finance cost for interest accrued on such lease liability.

49. Charity and Donations includes H553.81 Lacs (H50.51 Lacs) paid to political parties.

50. Previous year''s figures have been rearranged and/or regrouped, wherever necessary.

51. The financial statements have been approved by the Audit Committee at its meeting held on 10th June, 2021 and by the Board of Directors on the same date.

---

Mar 31, 2018

1. Corporate Information

Century Plyboards (India) Ltd. (the Company) is a public company domiciled in India and incorporated under the provisions of the Companies Act, 1956, having its registered office at 6, Lyons Range, Kolkata - 70000. Its shares are listed on National Stock Exchange of India Ltd. and BSE Limited. The Company is primarily engaged in manufacturing and sale of Plywood, Laminates, Decorative Veneers, Medium Density Fiber Boards, Pre-laminated boards, Particle Board and Flush Doors and providing Container Freight Station services. The Company presently has manufacturing facilities near Kolkata, Karnal, Guwahati, Hoshiarpur, Kandla and Chennai. Container Freight station is located near Kolkata port.

2. Significant Accounting Policies and Key Estimates and Judgements

2.1 Basis of Preparation of financial statements

These financial Statements relate to Century Plyboards (India) Limited. The financial statements have been prepared in accordance with Indian Accounting Standards (“Ind AS”) as prescribed under Section 133 of the Companies Act, 2013 (“the Act”), as notified under the Companies (Indian Accounting Standard) Rules, 2015 and other relevant provision of the Act.

The Company has adopted all the Ind AS standards effective 1st April, 2016 and the adoption was carried out in accordance with Ind AS 101 First time adoption of Indian Accounting Standards, with April, 2015 as the transition date. The transition was carried out from Indian Accounting Principles generally accepted in India as prescribed under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014 (IGAAP), which was the previous GAAP.

Accounting policies have been consistently applied except where a newly issued accounting standard is initially adopted or a revision to an existing accounting standard requires a change in the accounting policy hitherto in use.

The financial statements have been prepared on a historical cost basis, except for certain financial assets measured at fair value as described in accounting policies regarding financial instruments.

The financial statements have been prepared under the historical cost convention on accrual basis except for following assets and liabilities which have been measured at fair value:

- Financial instruments - Measured at fair value;

- Plan assets under defined benefit plans - Measured at fair value; and

Historical cost is generally based on the fair value of the consideration given in exchange for goods and services.

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date, regardless of whether that price is directly observable or estimated using another valuation technique. In estimating the fair value of an asset or a liability, the Company takes into account the characteristics of the asset or liability if market participants would take those characteristics into account when pricing the asset or liability at the measurement date. Fair value for measurement and/or disclosure purposes in the financial statement is determined on such a basis, except for share-based payment transactions, leasing transactions and measurements that have some similarities to fair value but are not fair value, such as net realisable value in Inventories or value in use in Impairment of Assets. The basis of fair valuation of these items are given as part of their respective accounting policies.

In addition, for financial reporting purposes, fair value measurements are categorised into Level 1, 2 or 3 based on the degree to which the inputs to the fair value measurements are observable and the significance of the inputs to the fair value measurement in its entirety, which are described as follows:

- Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that the Company can access at the measurement date;

- Level 2 inputs are inputs, other than quoted prices included within Level 1, that are observable for the asset or liability, either directly or indirectly; and

- Level 3 inputs are unobservable inputs for the asset or liability.

The financial statements are presented in Indian Rupees which is the Functional Currency and all values are rounded to nearest Lakhs with two decimal except when otherwise indicated.

2.2 Critical accounting judgment and key sources of estimation uncertainty

The application of accounting policies requires management to make estimates and judgments in determining certain revenues, expenses, assets, and liabilities. The following paragraphs explains areas that are considered more critical, involving a higher degree of judgment and complexity.

a. Impairment of non-current assets - Ind AS 36 requires that the Company assesses conditions that could cause an asset or a Cash Generating Unit (CGU) to become impaired and to test recoverability of potentially impaired assets. These conditions include internal and external factors such as the Company’s market capitalization, significant changes in the Company’s planned use of the assets or a significant adverse change in the expected prices, sales volumes or raw material cost. The identification of CGUs involves judgment, including assessment of where active markets exist, and the level of interdependency of cash inflows. CGU is usually the individual plant, unless the asset or asset group is an integral part of a value chain where no independent prices for the intermediate products exist, a group of plants is combined and managed to serve a common market, or where circumstances otherwise indicate significant interdependencies.

In accordance with Ind AS 36, goodwill and certain intangible assets are reviewed at least annually for impairment. If a loss in value is indicated, the recoverable amount is estimated as the higher of the CGU’s fair value less cost to sell, or its value in use. Directly observable market prices rarely exist for the Company’s assets, however, fair value may be estimated based on recent transactions on comparable assets, internal models used by the Company for transactions involving the same type of assets or other relevant information. Calculation of value in use is a discounted cash flow calculation based on continued use of the assets in its present condition, excluding potential exploitation of improvement or expansion potential. Determination of the recoverable amount involves management estimates on highly uncertain matters, such as commodity prices and their impact on markets and prices for upgraded products, development in demand, inflation, operating expenses and tax and legal systems. The Company uses internal business plans, quoted market prices and the Company’s best estimate of commodity prices, currency rates, discount rates and other relevant information. The Company does not include a general growth factor to volumes or cash flows for the purpose of impairment tests, however, cash flows are generally increased by expected inflation and market recovery towards previously observed volumes.

b. Defined Benefit Plans

The cost of the employment benefits such as gratuity, leave and provident fund obligation are determined using actuarial valuations. An actuarial valuation involves making various assumptions that may differ from actual developments in the future. These include the determination of the discount rate, future salary increases and mortality rates. Due to the complexities involved in the valuation and its long-term nature, a defined benefit obligation is highly sensitive to changes in these assumptions. All assumptions are reviewed at each reporting date.

The parameter most subject to change is the discount rate. In determining the appropriate discount rate for plans operated in India, the management considers the interest rates of government bonds.

The mortality rate is based on publicly available mortality tables for the specific countries. Those mortality tables tend to change only at interval in response to demographic changes. Future salary increases and gratuity increases are based on expected future inflation rates.

Further details about gratuity obligations are given in Note No. 32.

c. Environmental liabilities and Asset Retirement Obligation (ARO) - Estimation of environmental liabilities and ARO require interpretation of scientific and legal data, in addition to assumptions about probability and future costs.

d. Taxes - The Company calculates income tax expense based on reported income. Deferred income tax expense is calculated based on the differences between the carrying value of assets and liabilities for financial reporting purposes and their respective tax basis that are considered temporary in nature. Valuation of deferred tax assets is dependent on management’s assessment of future recoverability of the deferred benefit. Expected recoverability may result from expected taxable income in the future, planned transactions or planned tax optimizing measures. Economic conditions may change and lead to a different conclusion regarding recoverability.

e. Classification of leases - The Company enters into leasing arrangements for various assets. The classification of the leasing arrangement as a finance lease or operating lease is based on an assessment of several factors, including, but not limited to, transfer of ownership of leased asset at end of lease term, lessee’s option to purchase and estimated certainty of exercise of such option, proportion of lease term to the asset’s economic life, proportion of present value of minimum lease payments to fair value of leased asset and extent of specialized nature of the leased asset.

f. Useful lives of depreciable/ amortisable assets (tangible and intangible) - Management reviews its estimate of the useful lives of depreciable/ amortisable assets at each reporting date, based on the expected utility of the assets. Uncertainties in these estimates relate to technical and economic obsolescence that may change the utility of certain software, customer relationships, IT equipment and other plant and equipment

g. Expected Credit Loss Model - The Company applies expected credit loss (ECL) model for measurement and recognition of impairment loss on the Financial Assets. The Company follows ‘simplified approach’ for recognition of impairment loss allowance on trade receivables. As a practical expedient, the Company uses historically observed default rates over the expected life of the trade receivables and is adjusted for forward-looking estimates to determine impairment loss allowance on portfolio of its trade receivables.

2.3 Standards Issued but not yet Effective

The standard issued but not yet effective up to the date of issuance of the Company’s financial statements is disclosed below.

The Company intends to adopt this standard when it becomes effective.

a. Ind AS 115-Revenue from Contracts with Customers- The Ministry of Corporate Affairs (MCA) on March 28, 2018 has notified new Indian Accounting Standard as mentioned above .The new standard will come into force from accounting period commencing on or after 1st April, 2018.It replaces existing recognition guidance, including Ind AS 18 Revenue and Ind AS 11 Construction contract. The standard is likely to affect the measurement, recognition and disclosure of revenue. The Company has evaluated and there is no material impact of this amendment on the Financial Statement of the Company except disclosure. The Company will adopt the Ind AS 115 on the required effective date.

b. Ind AS 21, The Effect of Changes in Foreign Exchange Rates - The amendments to Ind AS 21 addresses issue to determine the date of transactions for the purpose of determining the exchange rate to be used on initial recognition of related assets, expenses or income when entity has received or paid advances in foreign currencies by incorporating the same in Appendix B to Ind AS 21. The amendment will come into force from accounting period commencing on or after 1st April, 2018. The Company has evaluated this amendment and impact of this amendment will not be material.

c. Amendments to other Ind AS

The Companies (Indian Accounting Standards) Amendment Rules, 2018 has also made amendments to:

Ind AS 12 - Income Taxes,

Ind AS 28 - Investment in Associates and Joint Ventures,

Ind AS 40 - Investment Property.

These rules come into force from 1st April, 2018. The Company has evaluated these amendments and as per assessment impact of amendment to Ind AS 12, amendment to Ind AS 40 and Ind AS 28 will not have any material impact on the financial statement of the Company . The Company will adopt above amendments from required effective date.

a) There is no change in number of shares in current year and last year.

b) Reconciliation of the shares outstanding at the beginning and at the end of the reporting period

c) Terms/ Rights attached to the Equity Shares

The Company has only one class of equity shares having par value of RS.1/- per share. Each holder of equity shares is entitled to one vote per share.

The Company declares and pays dividends in Indian rupees. The dividend proposed by the Board of Directors is subject to the approval of shareholders in the Annual General Meeting, except in case of interim dividend. In the event of liquidation of the Company , the holders of equity shares will be entitled to receive remaining assets of the Company , after distribution of all preferential amounts in proportion to their shareholdings.

d) The Company does not have any Holding/ Ultimate Holding Company. As such, no shares are held by them or their Subsidiaries/ Associates

e) Details of Shareholders holding more than 5% shares in the Company

As per records of the Company, including its register of members as at 31st March, 2018, the above shareholding represents legal ownerships of shares.

f) There are NIL ( Previous year NIL) shares reserved for issue under option and contracts/commitment for the sale of shares/ disinvestment.

g) During the period of five years immediately preceding the reporting date:

i. No shares were issued for consideration other than cash

ii. No bonus shares were issued

iii. No shares were bought back

h) There are NIL (Previous year NIL) securities convertible into Equity/ Preference Shares.

i) There are NIL (Previous year NIL) calls unpaid including calls unpaid by Directors and Officers as on the Balance Sheet date.

j) No shares were forfeited during the year or during the previous year.138000 equity shares of RS.10/-each (post split 1380000 equity shares of RS.1 each) on which RS.3.54 Lachad been paid up, were forfeited in the year 2001-2002.

Amalgamation Reserve:- This reserve was created on amalgamation of Shyam Century Ferrous Limited with the Company during the financial year 2005-2006.

Securities Premium Reserve:- This reserve had been created on issue of shares by way of public issue and right issue.

General Reserve:- General reserve is created from time to time by way of transfer of profits from retained earnings for appropriation purpose. General reserve is created by a transfer from one component of equity to another and is not an item of other comprehensive income.

Capital Redemption Reserve:- This reserve was created upon redemption of preference shares by Company in FY 2012-2013.

3. Borrowings (At Amortised Cost) (Contd.)

Notes:-

(a) Term Loan of H Nil ( 31st March, 2017 :1680.49 Lac) from a bank carries interest NA (31st March, 2017: @ 9.60% p.a). The Loan has been fully repaid during the year.

(b) Foreign currency term loan of RS.1073.16 Lac ( 31st March, 2017 : RS.1604.79 Lac) carries interest @6 months LIBOR 2.00% p.a. The loan is repayable in 8 equal quarterly instalments by 31st March, 2020 and is secured/to be secured by 1st charge on all the fixed assets pertaining to the plywood unit at Bachau,Gujrat and 2nd charge on the current assets of the plywood divisions of the Company on pari passu basis with other term lenders.

(c) Foreign currency term loan of RS.2927.62 Lac (31st March, 2017: RS.3503.36 Lac) carries interest @ 6 months LIBOR 2.00 % p.a. The loan is repayable in 20 equal quarterly instalments by 31st March, 2023 and is secured/to be secured by first charge on all the fixed assets pertaining to the Particle Board Unit at village Chinnappolapuram, Gummidipoondi, Tamil Nadu and by second charge on all the current assets of the Plywood Divisions of the Company on pari passu basis with other term lenders.

(d) Foreign currency term loan of RS.3895.27 Lac (31st March, 2017: 4658.39 Lac ) carries interest @ 6 months LIBOR 2.00 % p.a. The Loan is repayable in 20 equal quarterly instalments by 31st March, 2023 and is to be secured by 1st charge on proposed Corporate House at Taratala, Kolkata and is currently secured/to be secured by 1st charge on all the fixed assets pertaining to the Plywood Unit at Bishnupur, West Bengal by way of alternate security on pari passu basis with other term lenders.

(e) Term loan of RS.8267.54 Lac (31st March, 2017: 6580.53 Lac ) carries interest @MCLR presently 8.10% p.a. The Loan is repayable in 24 equal quarterly instalments commencing from 31st March, 2018 by 31st March, 2023 and is secured/to be secured by Ist charge over all fixed assets of MDF Unit at Hoshiarpur, Punjab and by 2nd charge on all the current assets of the said unit.

(f) Foreign currency term loan of RS.3902.39 Lac ( 31st March, 2017 : Nil) carries interest @ 6 Months LIBOR 1.25% p.a. The Loan is repayable in 16 equal quarterly instalments commencing from January 2019 by October 2022 and is secured/to be secured by 1st charge on all the Fixed Assets of the Plywood Unit at Bishnupur West Bengal on pari passu basis with other term lenders.

(g) Finance lease obligations are secured by hypothecation of the assets purchased there against and carrying interest between 9.64% p.a to 11.00% p.a (9.64% to 11% p.a).

The deferred revenue relates to the asset related government grant received, the same has been accounted for as deferred revenue and proportionately adjusted with depreciation.

Notes:-

a) Cash Credit and Buyer’s Credit from banks amounting to RS.29,528.43 Lac (31st March, 2017 : RS.32,033.90 Lac ) are secured/ to be secured by way of first charge on current assets (both present and future) of the Company and by way of second charge on the fixed assets of the plywood units at Mirza,Assam; Bishnupur, West Bengal; Taraori,Haryana; Chinnapploapuram, Gummidipoondi,Tamilnadu and Bacchau,Gujarat.The cash credit and buyer’s credit are also secured by personal guarantees of three directors of the Company.

b) The cash credit is repayable on demand and carries interest @ 8.20% to 9.30% (31.3.2017 : 9.85% to 12.00% ) p.a.

c) Buyers credit carries interest @ Libor plus 0.25% to 1.20% p.a (2016-17 0.34% to 1.20% p.a) and is repayable in 90-180 days.

d) Rate of Interest for Body Corporate Loan - NA (9.25%) p.a

e) Rate of Interest for Commercial Paper - NA (31st March, 2017; 6.75% p.a)

f) Rate of Interest for Packing Credit is 4.80% to 5.50% p.a (6.00%-6.05%)

4. Gratuity and Other Post Employment Benefit Plans

The Company has a defined benefit gratuity plan. Every employee who has completed five years or more of service is entitled to Gratuity on terms not less favourable than the provisions of The Payment of Gratuity Act, 1972. The scheme is funded with an insurance Company.

The Company also extends benefit of compensated absences to the employees, whereby they are eligible to carry forward their entitlement of earned leave for encashment upon retirement/separation. This is an unfunded plan.

The following tables summarise the components of net benefit expense recognised in the statement of profit and loss and the funded status and amounts recognised in the balance sheet for the Post - retirement benefit plans.

I. Expenses Recognised in the Statement of Profit & Loss

II. Net Asset / (Liability) recognised in the Balance Sheet

III. Change in Obligation during the Year

IV. Change in the Fair Value of Plan Assets during the year

V. In 2018-19 the Company expects to contribute RS.727.31 Lac (2016-17: RS.564.22 Lac) to gratuity.

VI. The Major Categories of Plan Assets as a Percentage of the Fair Value of Total Plan Assets

VII. Actuarial Assumptions

VIII. The estimates of future salary increases considered in actuarial valuation, take account of inflation, seniority, promotion and other relevant factors, such as supply and demand in the employment market.

IX. Contribution to Provident and Other Funds includes RS.954.47 Lac (2016-17 - RS.883.00 Lac) paid towards Defined Contribution Plans

X. A quantitative sensitivity analysis for significant assumption is as shown below:

Sensitivities due to mortality are not material and hence impact of change is not calculated.

The sensitivity analyses above have been determined based on a method that extrapolates the impact on defined benefit obligation as a result of reasonable changes in key assumptions occurring at the end of the reporting period.

XI. Maturity Profile of Defined Benefit Obligations

5. Leases

(a) Operating Lease:

Certain office premises, depots, showrooms, etc. are obtained on operating lease. The lease terms are for 1-3 years and are renewable for further period either mutually or at the option of the Company. There are neither any restrictions imposed nor any escalation clause in lease arrangements. There are no subleases. The leases are cancellable.

(b) Finance Lease:

Property, plant and equipment include certain vehicles obtained on finance lease. There is no escalation clause in the lease agreement .There are no restrictions imposed by lease arrangements. The year-wise break-up and future obligation towards minimum lease payments of RS.763.19 Lac (31st March, 2017: RS.1268.74 Lac) consisting of present value of lease payments of RS.709.05 Lac (31st March, 2017: RS.1 159.53 Lac) and financial charges RS.54.14 Lac (31st March, 2017: RS.109.21) under the respective agreements as on 31st March, 2018, is given below:

6. Capital Management

For the purpose of the Company’s capital management, capital includes issued equity capital, securities premium and all other equity reserves attributable to the equity holders of the Company. The primary objective of the Company’s capital management is to maximise the shareholder value.

The Company manages its capital structure and makes adjustments in light of changes in economic conditions. To maintain or adjust the capital structure, the Company may adjust the dividend payment to shareholders, return capital to shareholders or issue new shares. The Company monitors capital using a gearing ratio, which is net debt divided by total capital plus net debt.

The Company is not subject to any externally imposed capital requirements

7. Derivative Instruments and Unhedged Foreign Currency Exposure

a) The particulars of hedged foreign currency exposures as on the balance sheet date are as follows:

b) The particulars of unhedged foreign currency exposures as on the balance sheet date are as follows:

8. A CSR committee has been formed by the Company as per provisions of Section 135 of the Companies Act, 2013. The areas for CSR activities are promoting education, healthcare, animal welfare and projects ensuring environment sustainability. Disclosures of Corporate Social Responsibility expenditure in line with the requirement of Guidance Note on “Accounting for Expenditure on Corporate Social Responsibility Activities”

9. The Company has paid anti-dumping duty amounting to RS.176.66 Lac (31st March, 2017: RS.176.66 Lac) on import of phenol which in opinion of the management and based on a legal opinion, is in excess of actual margin of dumping of said materials and accordingly refundable in terms of Section 9AA of Custom Tariff Act, 1975 and hence the same is considered as receivable and included under the head Note No. 9 on “Other Current Assets”.

(c) Terms and conditions of transactions with related parties

1. The sales to/ purchases from/ services availed from/ and 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, interest free and will be settled in cash.

3. The Company has given guarantee to one of its subsidiaries for which it charges commission @2% p.a.

4. Employee related recoverable balances are unsecured, interest free and will be settled in cash.

5. The Company has provided loans to its subsidiaries for its business activities. The loan was unsecured and was repayable on demand. The loan outstanding as on 31st March, 2018 carries an interest @ 10%p.a.

6. The Company has taken loan from Enterprises owned/influenced by Key Management Personnel (KMP) or their relatives as well as from KMP’s. The loan has been fully repaid during the year. The loan was unsecured and was repayable on demand. The loan carried an interest @6.75% p.a.

10. 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 two types of risk: 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, trade payables, trade receivables, etc.

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 analyzed 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 No. 12 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. 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, 2018 and 31st March, 2017 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:- Previous years figures are in bracket Notes:

(a) Business Segments: The business segments have been identified on the basis of the products of the Company. Operating Segment disclosed are consistent with the information provided to and reviewed by the Chief Operating Decision Maker (CODM). Accordingly, the Company has identified following business segments:

Plywood - Plywood, Block-Board, Veneer & Timber

Laminate - Decorative Laminates & Pre-laminated Boards

MDF - Medium Density Fibre Boards

Plain Particle Board - Plain Particle Board

CFS Services - Container Freight Stations services

Others - Mainly Trading of Chemicals, Minerals, Readymade Furniture and Equipment’s

(b) Geographical Segments: The Company primarily operates in India and therefore the analysis of geographical segments is demarcated into India and overseas operations.

(c) Company’s Property Plant and Equipment (PPE) are located only in India. Hence separate figures for same have not been furnished.

11. Events occurring after the Balance Sheet date

Proposed Dividend

The Board of Directors at its meeting held on 16th May, 2018 have recommended a payment of final dividend of RS.1 per equity share of face value of RS.1 each for the financial year ended 31st March, 2018. The same amounts to RS.2,674.02 Lac (including dividend distribution tax of RS.452.29 Lac).

The above is subject to approval at the ensuing Annual General Meeting of the Company and hence is not recognized as a liability.

12. Charity and Donations includes RS.6.50 Lac (RS.500 Lac) paid to political parties.

13. The financial statements are approved by the Audit Committee at its meeting held on 16th May, 2018 and by the Board of Directors on the same date.

---

Mar 31, 2017

1. Significant Accounting Judgments, Estimates and Assumptions

The preparation of the financial statements requires management to make judgments, estimates and assumptions that affect the reported amounts of revenues, expenses, assets and liabilities, and the accompanying disclosures, and the disclosure of contingent liabilities. Uncertainty about these assumptions and estimates could result in outcomes that require a material adjustment to the carrying amount of assets or liabilities affected in future periods.

(i) Judgments

The management has made the following judgments, which have the most significant effect on the amounts recognized in the financial statements:

Liability towards decommissioning cost for land lease not recognized based on management''s decision that the Company will leave the leased property in as if condition at the expiry of the term of lease. As per the terms of the agreement, in such case the Company is not obligated for any decommissioning or site restoration activity.

(ii) Estimates and Assumptions

The key assumptions concerning the future and other key sources of estimation uncertainty at the reporting date, that have

a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year, are described below. The Company based its assumptions and estimates on parameters available when the financial statements were prepared. Existing circumstances and assumptions about future developments, however, may change due to market changes or circumstances arising that are beyond the control of the Company. Such changes are reflected in the assumptions when they occur.

a) Defined Benefit Plans

The cost of the employment benefits such as gratuity, leave and provident fund obligation are determined using actuarial valuations. An actuarial valuation involves making various assumptions that may differ from actual developments in the future. These include the determination of the discount rate, future salary increases and mortality rates. Due to the complexities involved in the valuation and its long-term nature, a defined benefit obligation is highly sensitive to changes in these assumptions. All assumptions are reviewed at each reporting date.

The parameter most subject to change is the discount rate. In determining the appropriate discount rate for plans operated in India, the management considers the interest rates of government bonds.

The mortality rate is based on publicly available mortality tables for the specific countries. Those mortality tables tend to change only at interval in response to demographic changes. Future salary increases and gratuity increases are based on expected future inflation rates.

Further details about gratuity obligations are given in Note 35

b) Taxes

Deferred tax assets are recognized for unused tax credits (MAT Credit Entitlement) to the extent that it is probable that taxable profit will be available against which the losses and tax credits can be utilized. Significant management judgments is required to determine the amount of deferred tax assets that can be recognized, based upon the likely timing and the level of future taxable profits together with future tax planning strategies.

The company has H5,204.95 Lac (31st March, 2016: H5,046.43 Lac, 1st April, 2015: H4,402.73 Lac) of tax credits carried forward.

c) Expected Credit Loss Model

The Company applies expected credit loss (ECL) model for measurement and recognition of impairment loss on the Financial Assets. The Company follows ''simplified approach'' for recognition of impairment loss allowance on trade receivables. As a practical expedient, the Company uses historically observed default rates over the expected life of the trade receivables and is adjusted for forward-looking estimates to determine impairment loss allowance on portfolio of its trade receivables.

*The Company enjoys tax holiday benefit in respect of its certain units under section 80IA and 80IE of the Income Tax Act, 1961 (Act) and accordingly at present is paying Minimum Alternative Tax (MAT) under Section 115JB of the Act. Utilization of such MAT credit would commence immediately upon completion of the Tax holiday period and the management is certain that there will be sufficient taxable profit to utilize the MAT credit recognized in the books of accounts.

b) Terms/Rights attached to the Equity Shares

The Company has only one class of equity shares having par value of H1/- per share. Each holder of equity shares is entitled to one vote per share. The Company declares and pays dividends in Indian rupees. The dividend proposed by the Board of Directors is subject to the approval of shareholders in the Annual General Meeting, except in case of interim dividend.

In the event of liquidation of the Company, the holders of equity shares will be entitled to receive remaining assets of the Company, after distribution of all preferential amounts in proportion to their shareholdings.

c) The Company does not have any Holding/ Ultimate Holding Company. As such, no shares are held by them or their Subsidiaries/ Associates

As per records of the Company, including its register of members as at 31st March, 2017, the above shareholding represents legal ownerships of shares.

e) There are NIL (Previous year NIL) shares reserved for issue under option and contracts / commitment for the sale of shares/ disinvestment.

f) During the period of five years immediately preceding the reporting date:

i. No shares were issued for consideration other than cash

ii. No bonus shares were issued

iii. No shares were bought back

g) There are NIL (Previous year NIL) securities convertible into Equity/ Preference Shares.

h) There are NIL (Previous year NIL) calls unpaid including calls unpaid by Directors and Officers as on the balance sheet date.

i) No shares were forfeited during the year or during the previous year.138000 equity shares of H10/-each (post split 1380000 equity shares of H1 each) on which H3.54 Lac had been paid up, were forfeited in the year 2001-2002

Amalgamation Reserve:- This reserve was created on amalgamation of Shyam Century Ferrous Limited with the Company during the financial year 2005-06

Securities Premium Reserve:- This reserve had been created on issue of shares by way of public issue and right issue

General Reserve:- General reserve is created from time to time by way of transfer profits from retained earnings for appropriation purpose. General reserve is created by a transfer from one component to equity to another and is not an item of other comprehensive income.

Capital Redemption Reserve:- This reserve was created for redemption of preference shares by company in FY 2012-13

Notes:-

(a) Term Loan of RS,1,680.49 Lac (31st March, 2016: RS,3,925.42 Lac, 1st April, 2015: RS,6,163.62 Lac) from a bank carries interest @ MCLR plus 0.50 % p.a. presently 9.60%p.a (31st March, 2016: 9.80% p.a., 1st April, 2015: 10.50% p.a.). The loan is repayable in 3 equal quarterly installments of RS,562.50 Lac each by 31st December, 2017 and is secured by first charge over all fixed assets of plywood units at Mirza, Assam ; Bishnupur, West Bengal; Taraori, Haryana; and Chinnappolapuram, Gummidipoondi, Tamil Nadu ; and by way of a second charge on entire current assets(both present and future) of the Plywood Divisions of the Company. The above loan is further secured by personal guarantees of three directors of the Company.

(b) Foreign currency term loan of H NIL (31st March, 2016: RS,1,591.92 Lac, 1st April, 2015: RS,3,004.32 Lac) carries interest (31st March, 2016: 4.07% p.a., 1st April, 2015: 4.07% p.a.) .The loan has been fully repaid during the year.

2. Borrowings (At Amortized Cost) (contd.)

(c) Foreign currency term loan of RS,1,604.79 Lac (31st March, 2016, RS,2,188.89 Lac, 1st April, 2015, RS,2,581.84 Lac carries interest @6 months LIBOR 2.00% p.a. The loan is repayable in 12 equal quarterly installments by 31st March, 2020 and is secured / to be secured by first charge on all the fixed assets pertaining to the Plywood Unit at Bhachau, Gujarat and second charge on all the current assets of the Plywood Divisions of the Company on pari passu basis with other term lenders.

(d) Foreign currency term loan of RS,3,503.36 Lac (31st March, 2016: RS,2,309.19 Lac, 1st April, 2015:RS, NIL) carries interest @ 6 months LIBOR 2.00 % p.a. The loan is repayable in 25 equal quarterly installments commencing from 31st March, 2017 by 31st March, 2023 and is secured/to be secured by first charge on all the fixed assets pertaining to the Particle Board Unit at village Chinnappolapuram, Gummidipoondi, Tamil Nadu and by second charge on all the current assets of the Plywood Divisions of the Company on pari passu basis with other term lenders.

(e) Foreign currency term loan of RS,4,658.39 Lac (31st March, 2016: RS,NIL, 1st April, 2015: RS,NIL) carries interest @ 6 months LIBOR 2.00 % p.a. (31st March, 2016: 2.00% p.a.) The Loan is repayable in 25 equal quarterly installments commencing from 31st March, 2017 by 31st March, 2023 and is secured by 1st charge on proposed Corporate House at Taratala, Kolkata, West Bengal and by 2nd charge on all the current assets of the plywood division of the company on pari passu basis with other term lenders.

(f) Term loan of RS,6,580.53 Lac (31st March, 2016: RS, NIL, 1st April, 2015: RS, NIL) carries interest @MCLR presently 8.30% p.a. The Loan is repayable in 24 equal quarterly installments commencing from 31st March, 2018 by 31st December, 2023 and is secured/to be secured by 1st charge overall fixed assets of MDF Unit at Hoshiarpur, Punjab and by 2nd charge on all the current assets of the said unit.

(g) Finance lease obligations are secured by hypothecation of the assets purchased there against and carrying interest between 9.64% p.a. to 11.% p.a. (31st March, 2016: 9.64% to 11.25% p.a., 1st April, 2015: 9.64% to 11.25% p.a.).

The deferred revenue relates to the asset related government grant received in earlier years, the same has been accounted for as deferred revenue and proportionately adjusted with depreciation.

Notes:-

a) Cash Credit, Short Term Loan and Buyer''s Credit from banks amounting to RS,32,033.90 Lac (31.3.2016 RS,34,096.50 Lac & 1.4.2015 RS,37,439.94 Lac) are secured / to be secured by way of first charge on current assets (both present and future) of the company and by way of second charge on the fixed assets of the plywood units at Mirza, Assam; Bishnupur, West Bengal; Taraori, Haryana; Chinnapploapuram, Gummidipoondi,Tamil Nadu and Bhachau, Gujarat. The cash credits, short term loan and buyer''s credits are also secured by personal guarantees of three directors of the Company.

b) The cash credit is repayable on demand and carries interest @ 9.85% to 12.00% (31.3.2016 9.85% to 10.95% 1.4.2015 11% to 11.50%) p.a.

c) Buyers credit carries interest @ LIBOR plus 0.34% (2015-16 0.34%, 1.4.2015 0.34%) to 1.20% (2015-16 1.20%, 1.4.2015 1.25%) and is repayable in 90-180 days.

d) Rate of Interest for Body Corporate Loan is 9.25% p.a.

e) Rate of Interest for Commercial Paper is 6.75% p.a.

f) Rate of Interest for Packing Credit is 6.00% to 6.05% p.a.

Trade payables and acceptances are non-interest bearing and are normally settled on 30 day terms. For terms and conditions with related parties, Refer Note 44

E) Footnotes to the above reconciliation

a. Investments at Fair Value (FVTPL financial assets)

Under Indian GAAP, the Company accounted for investments in unquoted and quoted equity shares as investment measured at cost less provision for other than temporary diminution in the value of investments. Under Ind AS, the Company has designated such investments except for Investment in Subsidiaries as FVTPL investments. Ind AS requires FVTPL investments to be measured at fair value. At the date of transition to Ind AS and as on 31st March, 2016, difference between the instrument''s fair value and Indian GAAP carrying amount has been recognized in the Retained earnings and Statement of Profit and Loss net of related deferred taxes. Investment in Subsidiaries continues to be measured at cost.

b. Deferred Tax

Indian GAAP requires deferred tax accounting using the income statement approach, which focuses on differences between taxable profits and accounting profits for the period. Ind AS 12 requires entities to account for deferred taxes using the balance sheet approach, which focuses on temporary differences between the carrying amount of an asset or liability in the balance sheet and its tax base. The application of Ind AS 12 approach has resulted in recognition of deferred tax on new temporary differences which was not required under Indian GAAP.

In addition, the various transitional adjustments lead to temporary differences. Deferred tax adjustments are recognized in correlation to the underlying transaction either in retained earnings or a separate component of equity.

c. Dividend

Under Indian GAAP, proposed dividends including Dividend Distribution Taxes (DDT) are recognized as a liability in the period to which they relate, irrespective of when they are declared. Under Ind AS, a proposed dividend is recognized as a liability in the period in which it is declared by the Company (usually when approved by shareholders in a general meeting) or paid.

In case of the Company, the declaration of dividend occurs after period end. Therefore, the liability recorded for dividend has been derecognized against retained earnings on 1st April, 2015 and recognized in year ended 31st March, 2016.

d. Re-Classifications

The Company has done the following reclassifications as per the requirements of Ind AS:

i) Assets / liabilities which do not meet the definition of financial asset / financial liability have been reclassified to other asset / liability.

ii) The Company has re-classified leasehold land in JJP and Sonai from Property Plant & Equipment to prepayments and leasehold land in Taratala transferred from Capital work in progress to prepayments.

iii) Re-Measurement gain/loss on employee defined benefit plans are re-classified from statement of profit and loss to OCI.

iv) The Company has re-classified unpaid dividend balance from cash and cash equivalents to other bank balances.

v) Excise duty on sales was earlier netted off with Sales, has now been re-classified to other expenses.

vi) Trade deposits where there is no unconditional right to defer the payment has been disclosed under current financial liability.

vii) MAT credit entitlement has been transferred to deferred tax asset.

e. Long Term Borrowings

Under Indian GAAP, the Company accounted for long term borrowings measured at transaction value. Under Ind AS, the Company has to recognize the long term borrowings at amortized cost using effective interest.

f. Leases

Under Ind AS, where the payments to the less or are structured to increase in line with expected general inflation to compensate for the less or’s expected inflationary cost increases, straight lining of lease is not required. The same was required under AS-19.

Company has initially recognized security deposit paid to the less or at fair value and subsequently at amortized cost as per Ind AS 109.

g. Expected Credit Loss Model

Ind AS 109 requires to recognize loss allowances on trade receivable and other financial assets of the Company, at an amount equal to the lifetime expected credit loss or the 12 month expected credit loss based on the increase in the credit risk.

h. Deferred Revenue

Under Indian GAAP, the Company credited capital investment subsidy in capital reserve. Under Ind AS, the Company has to recognize the capital subsidy as deferred revenue.

i. Other Comprehensive Income

Under Indian GAAP, the Company has not presented other comprehensive income (OCI) separately. Hence, it has reconciled Indian GAAP profit or loss to profit or loss as per Ind AS. Further, Indian GAAP profit or loss is reconciled to total comprehensive income as per Ind AS.

j. Ind AS 101 Exemptions Applied

Ind AS 101 allows first-time adopters certain exemptions from the retrospective application of certain requirements under Ind AS. Exemptions applied by Company are detailed here under:

(i) The Company has applied exemptions for Ind AS 103 Business Combinations and consequently none of the business combinations prior to date of transition i.e. 1st April, 2015 has been reinstated.

(ii) With regard to Property Plant and Equipment the Company has elected to continue with carrying value as recognized in its Indian GAAP Financial Statements as deemed cost at the transition date, viz., 1st April, 2015.

(iii) The Company has elected to continue with the carrying value of investment in subsidiaries/associates as recognized in its Indian GAAP financial statement as deemed cost at the transition date, viz., 1st April, 2015.

3. Gratuity and Other Post Employment Benefit Plans

The Company has a defined benefit gratuity plan. 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 scheme is funded with an insurance company.

The Company also extends benefit of compensated absences to the employees, whereby they are eligible to carry forward their entitlement of earned leave for encashment upon retirement/separation. This is an unfunded plan.

The following tables summaries the components of net benefit expense recognized in the statement of profit and loss and the funded status and amounts recognized in the balance sheet for the Post - retirement benefit plans.

4. Leases

(a) Operating Lease:

Certain office premises, depots, showrooms, etc. are obtained on operating lease. The lease terms are for 1-3 years and are renewable for further period either mutually or at the option of the Company. There are neither any restrictions imposed nor any escalation clause in lease arrangements. There are no subleases. The leases are cancellable.

(b) Finance Lease:

Property, plant and equipment include certain vehicles obtained on finance lease. There is no escalation clause in the lease agreement .There are no restrictions imposed by lease arrangements. The year-wise break-up and future obligation towards minimum lease payments of H1,268.74 Lac (31st March, 2016: H1,598.65 Lac, 1st April, 2015: H1,038.71 Lac) consisting of present value of lease payments of H1,159.53 Lac (31st March, 2016: H1,410.33 Lac, 1st April, 2015: H873.49 Lac) and financial charges H109.21 Lac (31st March, 2016: H188.31 Lac, 1st April, 2015: H165.22 Lac) under the respective agreements as on 31st March, 2017, is given below

5. Capital Management

For the purpose of the Company''s capital management, capital includes issued equity capital, securities premium and all other equity reserves attributable to the equity holders of the Company. The primary objective of the Company''s capital management is to maximize the shareholder value.

The Company manages its capital structure and makes adjustments in light of changes in economic conditions. To maintain or adjust the capital structure, the Company may adjust the dividend payment to shareholders, return capital to shareholders or issue new shares. The Company monitors capital using a gearing ratio, which is net debt divided by total capital plus net debt.

The Company is not subject to any externally imposed capital requirements.

6. The Company has paid anti-dumping duty amounting to H176.77 Lac (31st March, 2016: H176.77 Lac, 1st April, 2015: H176.77 Lac) on import of phenol which in opinion of the management and based on a legal opinion, is in excess of actual margin of dumping of said materials and accordingly refundable in terms of Section 9AA of Custom Tariff Act, 1975 and hence the same is considered as receivable and included under the head Note 10 on "Other Assets".

7. Related Party Disclosure:

(a) Name of the Related Parties and Related Party Relationship:

Related Parties where Control Exists:

Subsidiary Companies Auro Sundram Ply & Door Pvt. Ltd.

Ara Suppliers Pvt. Ltd.

Arham Sales Pvt. Ltd.

Adonis Vyaper Pvt. Ltd.

Apnapan Viniyog Pvt. Ltd.

Centuryply Myanmar Pvt. Ltd.

Century MDF Ltd.

Century Ply (Singapore) Pte Ltd.

Century Infotech Ltd.(w.e.f.19.05.2015)*

PT Century Ply Indonesia.(w.e.f.03.07.2015)

Century Ply Laos Co. Ltd. (w.e.f.14.10.2015)

Innovation Pacific Singapore Pte. Ltd. (till 24.08.2016)

Vietnam Innovation Pacific JSC (from 19.05.2016- 24.08.2016)

*Associate company till 18.05.2015

Related Parties with whom Transactions have taken place during the Year:

Key Management Personnel Sri Sajjan Bhajanka (Chairman and Managing Director)

Sri Sanjay Agarwal (Managing Director)

Sri Prem Kumar Bhajanka (Managing Director)

Sri Vishnu Khemani (Managing Director)

Sri Hari Prasad Agarwal (Vice Chairman and Executive Director)

Sri Ajay Baldawa (Executive Director)

Sri Keshav Bhajanka (Executive Director w.e.f.28.01.2016)

Smt. Nikita Bansal (Executive Director w.e.f 01.02.2017)

Sri Arun Kumar Julasaria (Chief Financial Officer)

Sri Sundeep Jhunjhunwala (Company Secretary)

Relatives of Key Management Smt. Santosh Bhajanka (Wife of Sri Sajjan Bhajanka)

Personnel Smt. Divya Agarwal (Wife of Sri Sanjay Agarwal)

Smt. Yash Bala Bhajanka (Wife of Sri Prem Kumar Bhajanka)

Smt. Sudha Khemani (Wife of Sri Vishnu Khemani)

Smt. Sumitra Devi Agarwal (Wife of Sri Hari Prasad Agarwal)

Smt. Shraddha Agarwal (Daughter of Sri Sajjan Bhajanka)

Smt. Payal Agrawal (Daughter of Sri Sajjan Bhajanka)

Smt. Sonu Kajaria (Daughter of Sri Sajjan Bhajanka)

Smt. Nikita Bansal (Daughter of Sri Sanjay Agarwal)

Sri Rajesh Kumar Agarwal (Son of Sri Hari Prasad Agarwal)

Smt. Bhawna Agarwal (Daughter-in-law of Sri Hari Prasad Agarwal)

Smt. Nancy Chowdhury (Daughter of Sri Prem Kumar Bhajanka)

Sri Abhishek Rathi (Son-in-law of Sri Ajay Baldawa)

Sri Surender Kumar Gupta (Brother of Sri Prem Kumar Bhajanka)

Enterprises Owned/ Influenced Brijdham Merchants Pvt. Ltd.

by Key Management Personnel Star Cement Ltd. (Formerly Cement Manufacturing Company Ltd.) or their relatives. Sri Ram Merchants Pvt. Ltd.

Sri Ram Vanijya Pvt. Ltd.

Sumangal Business Pvt. Ltd.

Sumangal International Pvt. Ltd.

Aegis Business Ltd.

Pacific Plywoods Pvt. Ltd.

Shyam Century Multiprojects Pvt. Ltd.

Century LED Ltd.

Landmark Veneers Pvt. Ltd.

Purbanchal Timber Industries (Firm dissolved on 31.03.2016)

8. 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 summarized 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 two types of risk: 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, trade payables, trade receivables, etc.

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

9. Financial Risk Management-Objectives and Policies (contd.)

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.

(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).

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 12 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.

(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.

* Indicates figures for 2016-17 ** Indicates figures for 2015-16 *** Indicates figures as on 1st April, 2015

Notes:

(a) Business Segments: The business segments have been identified on the basis of the products of the Company. Operating Segment disclosed are consistent with the information provided to and reviewed by the Chief Operating Decision Maker (CODM). Accordingly, the Company has identified following business segments:

Plywood - Plywood, Block-Board, Veneer & Timber

Laminate - Decorative Laminates & Pre-laminated Boards

MDF - Medium Density Fibre Boards

Plain Particle Board - Plain Particle Board

CFS Services - Container Freight Stations services

Others - Mainly Trading of Chemicals, Minerals, Readymade Furniture and Equipment''s

(b) Geographical Segments: The Company primarily operates in India and therefore the analysis of geographical segments is demarcated into India and overseas operations.

(c) Company''s Property Plant and Equipment (PPE) are located only in India. Hence separate figures for same have not been furnished.

Proposed Dividend

The Board of Directors at its meeting held on 23rd May, 2017 have recommended a payment of final dividend of H1 per equity share of face value of H1 each for the financial year ended 31st March, 2017. The same amounts to H2,674.02 Lac (including dividend distribution tax of H452.29 Lac).

The above is subject to approval at the ensuing Annual General Meeting of the Company and hence is not recognized as a liability.

10 Charity and Donations includes H500 Lac (H ''Nil'') paid to the Bharatiya Janata Party (a political party)

11 The financial statements are approved by the audit committee at its meeting held on 23rd May, 2017 and by the Board of Directors on the same date.

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Mar 31, 2016

A) There is no change in number of shares in current year and last year.

b) Terms/Rights attached to the Equity Shares

The company has only one class of equity shares having par value of Rs.1/- per share. Each holder of equity shares is entitled to one vote per share.

The company declares and pays dividends in Indian rupees. The dividend proposed by the Board of Directors is subject to the approval of shareholders in the Annual General Meeting, except in case of interim dividend.

In the event of liquidation of the company, the holders of equity shares will be entitled to receive remaining assets of the company, after distribution of all preferential amounts in proportion to their shareholdings.

c) The Company does not have any Holding/ Ultimate Holding Company. As such, no shares are held by them or their Subsidiaries/ Associates

e) There are NIL (Previous year NIL) shares reserved for issue under option and contracts/commitment for the sale of shares/ disinvestment including the terms and amounts.

f) During the period of five years immediately preceding the reporting date:

i. No shares were issued for consideration other than cash

ii. No bonus shares were issued

iii. No shares were bought back

g) There are NIL (Previous year NIL) securities convertible into Equity/ Preference Shares.

h) There are NIL (Previous year NIL) calls unpaid including calls unpaid by Directors and Officers as on the balance sheet date.

i) No shares were forfeited during the year or during the previous year.138000 equity shares of Rs.10/-each(post split 1380000 equity shares of Rs.1 each) on which Rs.3.54 lac had been paid up, were forfeited in the year 2001-2002

Notes:-

(a) Term Loan of Rs.3934.50 lac (Rs.6184.50 lac) from a bank carries interest @ base rate plus 0.50 % p.a., presently @ 9.80% (10.50%) p.a. The loan is repayable in 7 equal quarterly installments of Rs.562.50 Lac each by 31st December, 2017 and is secured by first charge over All fixed assets of plywood units at Mirza, Assam ; Bishnupur, West Bengal;Taraori, Haryana; and Chinnappolapuram, Gummidipoondi, Tamilnadu ; and by way of a second charge on entire current assets (both present and future) of the Plywood Divisions of the company. The above loan is further secured by personal guarantees of three directors of the company.

(b) Foreign currency term loan of Rs.1591.92 lac (Rs.3004.32 lac) carries interest @ 4.07% (4.07%) p.a. The loan is repayable in one installment by 21st August,2016 and is secured/to be secured by hypothecation/ equitable mortgage of all the moveable and immovable fixed assets pertaining to the Container Freight Stations of the Company. Further, three promoters have pledged in aggregate 110 lac shares of the Company as security against the loan.

(c) Foreign currency term loan of Rs.2188.89 lac (Rs.2581.84 lac) carries interest @6 months LIBOR 2.00%(3.50%) p.a. The loan is repayable in 16 equal quarterly installments by 31st March, 2020 and is secured /to be secured by first charge on all the fixed assets pertaining to the Plywood Unit at Bachau,Gujarat and second charge on all the current assets of the Plywood Divisions of the company on pari passu basis with other term lenders.

(d) Foreign currency term loan of Rs.2321.55 lac (Rs. NIL) carries interest @ 6 months LIBOR 2.00% p.a. The loan is repayable in 25 equal quarterly installments commencing from 31st March,2017 and ending on 31st March,2023 and is secured/to be secured by first charge on all the fixed assets pertaining to the Particle Board Unit at village Chinnaobulapuram, Gummidipoondi, Tamil Nadu and by second charge on all the current assets of the Plywood Divisions of the company on pari passu basis with other term lenders.

(e) Finance lease obligations are secured by hypothecation of the assets purchased there against and carrying interest between 9.64% to 11.25% p.a (9.64% to 11.25% p.a).

Notes:-

a) Cash Credit, Short Term Loan and Buyer''s Credit from banks amounting to Rs.34096.50 lac (Rs.37439.94 lac) are secured / to be secured by way of first charge on current assets (both present and future) of the company and by way of second charge on the fixed assets of the plywood units at Mirza,Assam; Bishnupur,West Bengal; Taraori,Haryana; Chinnapploapuram, Gummidipoondi,Tamilnadu and Bacchau,Gujarat. The cash credits, short term loan and buyer''s credits are also secured by personal guarantees of three directors of the Company.

b) The cash credit is repayable on demand and carries interest @ 9.85% to 10.95% (11% to 11.50%) p.a.

c) The Short Term Loan is repayable within April''15 and carries interest @ 9.60%

d) Buyers credit carries interest @ Libor plus 0.34% (0.34%) to 1.20% (1.25%) and is repayable in 90-180 days.

1. Capital & Other Commitments

a) Estimated amount of contracts remaining to be executed on Capital Account (net of advances) and not provided for Rs.14890.85 lac (Rs.7023.38 lac)

b) For commitment relating to lease arrangements, please refer note no 29.

c) Letters of credit issued by the banks for purchase of raw materials Rs.4141.64 lac (Rs.3876.08 lac)

d) Export Commitment - Rs.1168.55 lac (Rs.1717.68 lac)

2. The Company''s segment information as at and for the Year ended 31st March, 2016 are as below: (contd.)

Notes:

(a) Business Segments: The business segments have been identified on the basis of the products of the Company. Accordingly, the Company has identified following business segments:

Plywood - Plywood, Block-Board, Veneer & Timber Laminate - Decorative Laminates & Pre-laminated Boards CFS Services - Container Freight Stations services

Others - Mainly Trading of Chemicals, Minerals, Readymade Furniture and Equipments

(b) Geographical Segments: The Company primarily operates in India and therefore the analysis of geographical segments is demarcated into India and overseas operations.

(c) Company''s fixed assets are located in India and no fixed assets is located outside India, hence separate figures for fixed assets/ additions to fixed assets have not been furnished.

3. The Company has paid anti dumping duty amounting to Rs.176.77 lac (Rs.176.77 lac) on import of phenol which in opinion of the management and based on a legal opinion, is in excess of actual margin of dumping of said materials and accordingly refundable in terms of Section 9AA of Custom Tariff Act, 1975 and hence the same is considered as receivable and included under the head Short Term Loans & Advances.

4. The Company enjoys tax holiday benefit in respect of its certain units under section 80IA and 80IE of the Income Tax Act, 1961 (Act) and accordingly at present is paying Minimum Alternative Tax (MAT) under Section 115JB of the Act. Utilisation of such MAT credit would commence immediately upon completion of the Tax holiday period and the management is certain that there will be sufficient taxable profit to utilise the MAT credit recognised in the books of accounts.

5. Previous year''s figures including those given in brackets have been re-grouped and re-arranged wherever necessary.

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Mar 31, 2015

1. corporate information

Century Plyboards (India) Ltd. (the Company) is a public Company domiciled in India and incorporated under the provisions of the Companies Act, 1956. Its shares are listed on National Stock Exchange of India Ltd. and BSE Ltd. The Company is primarily engaged in manufacturing and sale of Plywood, Laminates, Decorative Veneers, Pre-laminated boards and Flush Doors and providing Container Freight Station services. The Company presently has manufacturing facilities at Kolkata, Karnal, Guwahati, Bacchau and near Chennai. Container Freight station is located at Kolkata.

2. CAPITAL & OTHER COMMITMENTS

a) Estimated amount of contracts remaining to be executed on Capital Account (net of advances) and not provided for Rs. 7023.38 Lacs (Rs. 298.77 Lacs)

b) For commitment relating to lease arrangements, please refer note 28.

c) Letters of credit issued by the banks for purchase of raw materials H3876.08 Lacs (H5634.78 Lacs).

3. CONTINGENT LIABILITIES

As at As at 31st March, 31st March, 2015 2014 Rs. in Lacs Rs. in Lacs

Contingent Liabilities not provided for in respect of :-

(a) Demands / Claims by various Government Authorities and others not acknowledged as debt:

(i) Excise Duty/Service Tax 861.70 816.88

(ii) Sales Tax / VAT 764.71 582.81

(iii) Income Tax 109.65 1203.83

Total 1736.06 2603.52

(b) Guarantees in favour of a bank against facilities granted to

* a Subsidiary Company - 1000.00

* Others (outstanding amount at the year end) 421.69 239.76

(c) Un-redeemed bank guarantees 819.54 1317.74

(d) Bills discounted with banks 40.07 62.02

(e) Custom Duty on import under EPCG Scheme against which Export obligation 316.16 128.42 is to be fulfilled

Note; Based on discussion with the solicitors/favourable decisions in similar cases/legal opinion taken by the company, the management believes that the outflow of resources is not probable and hence, no provision there against is considered necessary.

4. A CSR committee has been formed by the company as per provisions of Section 135 of the Companies Act, 2013. The areas for CSR activities are promoting education, healthcare, animal welfare and projects ensuring environment sustainability .

5. The Company has charged depreciation based on the revised remaining useful life of the assets as per the requirement of Schedule II of the Companies Act, 2013 effective from April 1, 2014. Due to above, depreciation charge for the year ended 31st March,2015 is higher by Rs.819.35 lacs. Further, based on transitional provision provided in note 7(b) of Schedule II, an amount of Rs.152.02 lacs (net of Deferred Tax) has been adjusted with retained earnings.

6. RELATED PARTY DISCLOSURES

a) Name of the related parties and related party relationship;

Related parties where control exists

Subsidiary Companies Auro Sundram Ply and Door Pvt. Ltd.

Ara Suppliers Pvt. Ltd. (w.e.f. 28-07-2014)

Arham Sales Pvt. Ltd. (w.e.f. 28-07-2014)

Adonis Vyaper Pvt. Ltd. (w.e.f. 28-07-2014)

Apnapan Viniyog Pvt. Ltd. (w.e.f. 28-07-2014)

Aegis Business Ltd. (Up to 22-08-2014)

Aegis Overseas Ltd. (Up to 22-08-2014)

Centuryply Myanmar Pvt. Ltd.

Century MDF Ltd.

Century Ply (Singapore) Pte Ltd. (w.e.f 02-12-2014)

Related parties with whom transactions have taken place during the year

Associates Century Infotech Ltd.

Ara Suppliers Pvt. Ltd. (Up to 27-07-2014)

Arham Sales Pvt. Ltd. (Up to 27-07-2014)

Adonis Vyaper Pvt. Ltd. (Up to 27-07-2014)

Apnapan Viniyog Pvt. Ltd. (Up to 27-07-2014)

Aegis Siam Resources Co.Ltd. (Up to 22-08-2014)

Aegis Siam Ltd. (Up to 22-08-2014

Related parties with whom transactions have taken place during the year

Key Management Personnel Sri Sajjan Bhajanka (Chairman & Managing Director)

Sri Sanjay Agarwal (Managing Director)

Sri Prem Kumar Bhajanka (Managing Director)

Sri Vishnu Khemani (Managing Director)

Sri Hari Prasad Agarwal (Vice Chairman)

Sri Ajay Baldawa (Executive Director)

Sri Arun Kumar Julasaria (Chief Financial Officer)

Sri Sundeep Jhunjhunwala (Company Secretary)

Enterprises Owned/ Influenced Brijdham Merchants Pvt. Ltd. by Key Management Personnel Cement Manufacturing Company Ltd. or their relatives. Sri Ram Merchants Pvt. Ltd.

Sri Ram Vanijya Pvt. Ltd.

Sumangal Business Pvt. Ltd.

Sumangal International Pvt. Ltd.

Star Cement Meghalaya Ltd.

Meghalaya Power Ltd.

Auroville Investements Pvt. Ltd.

Aegis Business Ltd. (w.e.f. 07-01-2015)

Relatives of Key Management Smt. Santosh Bhajanka (Wife of Personnel Sri Sajjan Bhajanka)

Smt. Divya Agarwal (Wife of Sri Sanjay Agarwal)

Smt. Sumitra Devi Agarwal (Wife of Sri Hari Prasad Agarwal)

Smt. Yash Bhajanka (Wife of Sri Prem Kumar Bhajanka)

Smt. Sudha Khemani (Wife of Sri Vishnu Khemani)

Smt.Shraddha Agarwal (Daughter of Sri Sajjan Bhajanka)

Smt. Payal Agrawal (Daughter of Sri Sajjan Bhajanka)

Smt. Sonu Kajaria (Daughter of Sri Sajjan Bhajanka)

Smt. Bhawna Agarwal (Daughter-in-law of Sri Hari Prasad Agarwal)

Sri Rajesh Kumar Agarwal (Son of Sri Hari Prasad Agarwal)

Smt. Nancy Chowdhury (Daughter of Sri Prem Kumar Bhajanka)

Sri Keshav Bhajanka (Son of Sri Sajjan Bhajanka)

Sri Abhishek Rathi (Son in Law of Sri Ajay Baldawa)

Sri Surender Kumar Gupta (Brother of Sri Prem Kumar Bhajanka)

Smt. Nikita Bansal (Daughter of Sri Sanjay Agarwal)

7. The Company''s segment information as at and for the Year ended 31st March, 2015 are as below:

Notes:

(a) Business Segments; The business segments have been identified on the basis of the products of the Company, Accordingly, the Company has identified following business segments;

Plywood - Plywood, Block-Board, Veneer & Timber

Laminate - Decorative Laminates & Pre-laminated Boards

CFS Services - Container Freight Stations services

Others - Mainly Trading of Chemicals, Minerals, Readymade Furniture and Equipments

(b) Geographical Segments; The Company primarily operates in India and therefore the analysis of geographical segments is demarcated into India and overseas operations,

(c) Company''s fixed assets are located in India and no fixed assets is located outside India, hence separate figures for fixed assets/ additions to fixed assets have not been furnished,

8. The Company has paid anti dumping duty amounting to Rs.176.77 (Rs. 176,77) lacs on import of phenol which in opinion of the management and based on a legal opinion, is in excess of actual margin of dumping of said materials and accordingly refundable in terms of Section 9AA of Custom Tariff Act, 1975 and hence the same is considered as receivable and included under the head Short Term Loans & Advances,

9. The Company enjoys tax holiday benefit in respect of its certain units under section 80IA and 80IE of the Income Tax Act, 1961 (Act) and accordingly at present is paying Minimum Alternative Tax (MAT) under Section 115JB of the Act. Utilisation of such MAT credit would commence immediately upon completion of the Tax holiday period and the management is certain that there will be sufficient taxable profit to utilise the MAT credit recognised in the books of accounts.

10. Previous year''s figures including those given in brackets have been re-grouped and re-arranged wherever necessary.

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Mar 31, 2014

1.0 CORPORATE INFORMATION

Century Plyboards (India) Ltd. (the Company) is a public Company domiciled in India and incorporated under the provisions of the Companies Act, 1956. Its shares are listed on National Stock Exchange of India Ltd. and BSE Ltd. The Company is primarily engaged in manufacturing and sale of Plywood, Laminates, Decorative Veneers, Pre-laminated boards and Flush Doors and providing Container Freight Station services. The Company presently has manufacturing facilities at Kolkata, Karnal, Guwahati, Bacchau and near Chennai. Container Freight station is located at Kolkata.

1.1 Basis of Preparation

The financial statements of the Company have been prepared in accordance with generally accepted accounting principles in India (Indian GAAP). The Company has prepared these financial statements to comply in all material respects with the Accounting Standards notified by the Companies (Accounting Standards) Rules, 2006 (as amended) and the relevant provisions of the Companies Act, 1956 read with General Circular No 8/2014 dated 4th April, 2014, issued by Ministry of Corporate Affairs. The financial statements have been prepared under the historical cost convention on an accrual basis. The accounting policies applied by the Company are consistent with those used in the previous year.

2. CAPITAL & OTHER COMMITMENTS

a) Estimated amount of contracts remaining to be executed on Capital Account (net of advances) and not provided for Rs.298.77 Lacs (Rs.491.53 Lacs)

b) For commitment relating to lease arrangements, please refer Note 30.

3. CONTINGENT LIABILITIES As at As at 31st March, 2014 31st March, 2013 Rs. in Lacs in Lacs

Contingent Liabilities not provided for in respect of :-

(a) Demands / Claims by various Government Authorities and others not acknowledged as debt:

(i) Excise Duty/Service Tax 816.88 817.44

(ii) Sales Tax / VAT 582.81 528.64

(iii) Income Tax 1203.83 216.03

Total 2603.52 1562.11

(b) Guarantees in favour of a bank against facilities granted to

- a Subsidiary Company 1000.00 1000.00

- Others 239.76 93.07

(c) Un-redeemed bank guarantees 1317.74 814.76

(d) Bills discounted with banks 62.02 -

(e) Letters of credit issued by the banks 5634.78 5919.05

(f) Custom Duty on import under EPCG Scheme against which

Export obligation is to be fulfilled 128.42 106.97

Note: Based on discussion with the solicitors/favourable decisions in similar cases/legal opinion taken by the Company the management believes that the outflow of resources in not probable and hence, no provision there against is considered necessary.

4. (a) operating Lease:

Certain office premises, depots etc. are obtained on operating lease. The lease terms are for 1-3 years and are renewable for further period either mutually or at the option of the Company. There is no escalation clause in the lease agreement. There are no restrictions imposed by lease arrangements. There are no subleases. The leases are cancellable.

5. The Company has a defined benefit gratuity plan. Every employee who has completed five years or more of service is entitled to Gratuity as per provisions of The Payment of Gratuity Act, 1972. The scheme is funded with an insurance company.

The following tables summarize the components of net benefit expenses recognised in the Statement of Profit & Loss and the funded status and amounts recognised in the balance sheet for the Gratuity.

(i) Amount incurred as expense for defined contribution to Provident Fund is Rs.491.59 Lacs (Rs.393.06 lacs).

(ii) The estimates of future salary increases considered in actuarial valuation, take account of inflation, seniority, promotion and other relevant factors, such as supply and demand in the employment market.

(iii) The Company expects to contribute Rs.100 lacs (Rs.100 Lacs) to Gratuity fund in 2014-15.

5. Derivative Instruments And unhedged Foreign Currency Exposure.

a) Derivative instrument not for trading or speculation but as hedge of underlying transaction, outstanding as on the balance sheet date, are as follows:-

Interest Rate Swap

Notional amount USD 72 Lacs (USD 96 Lacs). [Rs.4,327.20 Lacs (Rs.5,221.44 Lacs)]

Hedge against exposure to variable interest outflow on loans. Swap to pay fixed interest @ 1.62% p.a. (in USD) and receive a variable interest @ 3 month LIBOR on the notional amount

6. Charity and Donations includes Rs.14.00 Lacs (T7.00 lacs) paid to the Bhartiya Janata Party.

7. Related Party Disclosures

a) Name of the related parties and related party relationship: Related parties where control exists

Subsidiary Companies

Auro Sundram Ply & Door Pvt. Ltd. Aegis Business Ltd. Aegis Overseas Ltd. Centuryply Myanmar Pvt. Ltd. Century MDF Ltd.

Related parties with whom transactions have taken place during the year

Associates Century Infotech Ltd. (with effect from 14th March, 2014)

Key Management Personnel

Sri Sajjan Bhajanka (Chairman) Sri Sanjay Agarwal (Managing Director) Sri Prem Kumar Bhajanka (Managing Director) Sri Vishnu Khemani (Managing Director) Sri Hari Prasad Agarwal (Vice Chairman) Sri Ajay Baldawa (Executive Director) Sri Arun Kumar Julasaria (Chief Financial Officer)

Enterprises Owned/ Influenced by Key Management Personnel or their relatives.

Brijdham Merchants Pvt. Ltd. Cement Manufacturing Company Ltd. Sri Ram Merchants Pvt. Ltd. Sri Ram Vanijya Pvt. Ltd. Sumangal Business Pvt. Ltd. Sumangal International Pvt. Ltd. Star Cement Meghalaya Ltd. Meghalaya Power Ltd. Auroville Investements Pvt. Ltd.

Relatives of Key Management Personnel

Smt. Santosh Bhajanka (Wife of Sri Sajjan Bhajanka) Smt. Divya Agarwal (Wife of Sri Sanjay Agarwal) Smt. Sumitra Devi Agarwal (Wife of Sri Hari Prasad Agarwal) Smt. Yash Bhajanka (Wife of Sri Prem Kumar Bhajanka) Smt. Sudha Khemani (Wife of Sri Vishnu Khemani) Smt. Shraddha Agarwal (Daughter of Sri Sajjan Bhajanka) Smt. Payal Agrawal (Daughter of Sri Sajjan Bhajanka) Smt. Sonu Kajaria (Daughter of Sri Sajjan Bhajanka) Sri Rajesh Kumar Agarwal (Son of Sri Hari Prasad Agarwal) Smt. Bhawna Agarwal (Daughter-in-law of Sri Hari Prasad Agarwal) Smt. Nancy Chowdhury (Daughter of Sri Prem Kumar Bhajanka) Sri Keshav Bhajanka (Son of Sri Sajjan Bhajanka) Smt. Nikita Bansal (Daughter of Sri Sanjay Agarwal)

(c) The Company purchases goods from Auro Sundram Ply & Door Pvt. Ltd., a subsidiary company on certain special terms and conditions which include commitment of supply of its entire production to the Company timely availability and delivery as required by the Company commitment of consistent quality as per the Company norms and free of cost delivery of goods, besides other terms and conditions

8. The Company has paid anti dumping duty amounting to Rs.176.66 lacs on import of phenol which in opinion of the management and based on a legal opinion, is in excess of actual margin of dumping of said materials and accordingly refundable in terms of Section 9AA of Custom Tariff Act, 1975 and hence the same is considered as receivable and included under the head Loans & Advances.

9. The Company enjoys tax holiday benefit in respect of its certain units under section 80IA and 80IE of the Income Tax Act, 1961 (Act) and accordingly at present is paying Minimum Alternative Tax (MAT) under Section 115JB of the Act. Utilisation of such MAT credit would commence immediately upon completion of the Tax holiday period and the management is certain that there will be sufficient taxable profit to utilise the MAT credit recognised in the books of accounts.

10. Previous year''s figures including those given in brackets have been re-grouped and re-arranged wherever necessary.

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Mar 31, 2013

1. CORPORATE INFORMATION

Century Plyboards (India) Ltd. (the Company) is a public Company domiciled in India and incorporated under the provisions of the Companies Act, 1956. Its shares are listed on National Stock Exchange and Bombay Stock Exchange in India. The Company is primarily engaged in manufacturing and sale of Plywood, Laminates, Decorative Veneers, Pre- laminated boards and Flush Doors. The Company presently has manufacturing facilities at Kolkata, Karnal, Guwahati, Bacchau and Chennai.

1.1 Basis of Preparation

The financial statements of the Company have been prepared in accordance with generally accepted accounting principles in India (Indian GAAP). The Company has prepared these financial statements to comply in all material respects with the Accounting Standards notified by the Companies (Accounting Standards) Rules, 2006 (as amended) and the relevant provisions of the Companies Act, 1956. The financial statements have been prepared under the historical cost convention on an accrual basis. The accounting policies applied by the Company are consistent with those used in the previous year.

2. Capital & Other Commitments

a) Estimated amount of contracts remaining to be executed on Capital Account (net of advances) and not provided for f 491.53 Lacs (f 1,395.35 Lacs)

b) For commitment relating to lease arrangements, please Refer Note No. - 33.

3. There is a diminution of f 360.60 Lacs (f 185.70 Lacs) in the value of a quoted investment based on the last quoted price. The above investment being long term and strategic in nature, the said diminution, in the opinion ofthe management, istemporary in nature and hence no provision is considered necessary.

4. Excise Duty debited to Statement of Profit & Loss is Net of Subsidy f 679.52 Lacs (f 687.93 Lacs).

5. (a) Operating Lease :

Certain office premises, depots etc are obtained on operating lease. The lease terms are for 1-3 years and are renewable for further period either mutually or at the option of the Company. There is no escalation clause in the lease agreements. There are no restrictions imposed by lease arrangements. There are no sub-leases. The leases are cancellable.

6. The Company has a defined benefit gratuity plan. 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 scheme is funded with an insurance company.

7. Scheme ofArrangement:

a) Pursuant to the Scheme of Arrangement ("The Scheme") approved by the Hon''ble High Court of Kolkata vide its order dated 17th May, 2013, all the assets and liabilities of the Ferro Alloys and Cement division (i.e., business and interests ofthe Company in manufacture of ferro alloys and cement, including captive power plants attached thereto) have been transferred to and vested in Star Ferro and Cement Limited (Resulting Company) at their respective book values on a going concern basis with effect from 1st April, 2012 being the appointed date. Accordingly, the Scheme ofArrangement has been given effect to in these accounts.

8. The Company has paid anti dumping duty amounting to Rs. 204.16 Lacs (including Rs. 47.43 Lacs during the year) on import of phenol which in opinion of the management and based on a legal opinion, is in excess of actual margin of dumping of said materials and accordingly refundable in terms of Section 9AA of Custom Tariff Act, 1975 and hence the same is considered as receivable and included under the head Loans & Advances.

9. In view of the new plywood unit being installed at Gandhidham, Gujarat and expansion of the existing Laminate unit, the management is certain that there will be sufficient taxable profit during the specified period to adjust the MAT credit recognised in the books of accounts.

10. Previous year''s figures including those given in brackets have been regrouped and rearranged wherever necessary. Further, previous year figures being inclusive of the figures of ferro alloys and cement divisions of the Company which have been demerged w.e.f. 1st April, 2012 (pursuant to a Scheme of Arrangement, Refer Note No. - 35), are not comparable with the current year''s figures.

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Mar 31, 2012

1. BASIS OF PREPARATION

The financial statements have been prepared to comply in all material respects with the Accounting Standards notified by the Companies (Accounting Standards) Rules, 2006 (as amended) and the relevant provisions of the Companies Act, 1956. The financial statements have been prepared under the historical cost convention on an accrual basis except in respect of insurance and other claims, which on the grounds of prudence or uncertainty in realization, are accounted for as and when accepted/received. The accounting policies applied by the Company are consistent with those used in the previous year, except for the change in accounting policy explained in l.l(i) below.

2. Capital & Other Commitments

a) Estimated amount of contracts remaining to be executed on Capital Account (net of advances) and not provided forRs. 1,395.35 Lacs (Rs. 271.89 Lacs).

b) For commitment relating to lease arrangements, please refer note no. 31.

3. Contingent Liabilities (Rs. in Lacs)

As at As at 31st March,2012 31st March, 2011

Contingent Liabilities not provided for in respect of:-

(a) Demands/Claims by various Government Authorities and others not acknowledged as debt:

(i) Excise Duty/Service Tax 392.54 537.40

(ii) Sales Tax/VAT 327.14 316.20

(iii) Income Tax 313.38 285.52

(iv) Others - 34.32

Total 1,033.06 1,173.44

(b) Guarantees in favour of a bank against facilities 641.00 641.00 granted to a Subsidiary Company

(c) Un-redeemed bank guarantees 557.29 507.11

(d) Bills discounted with banks 9.29 751.31

(e) Letters of credit issued by the banks 3,102.55 2,086.46

(f) Custom Duty on import under EPCG Scheme against which Export obligation is to be fulfilled 68.12 24.39

Note:

Based on discussion with the solicitors/favourable decisions in similar cases/legal opinion taken by the Company, the management believes that the Company has a good chance of success in above mentioned cases and hence, no provision there against is considered necessary.

4. There is a diminution of Rs. 185.70 lacs (Rs. 66.30 Lacs) in the value of a quoted investment based on the last quoted price. The above investment being long term and strategic in nature, the said diminution, in the opinion of the management, is temporary in nature and hence no provision is considered necessary.

5. Excise Duty debited to Statement of Profit & Loss is Net of Subsidy Rs. 687.93 Lacs (Rs. 436.67 Lacs).

6. (a) Operating Lease :

Certain office premises, depots etc are obtained on operating lease. The lease terms are for 1-3 years and are renewable for further period either mutually or at the option of the Company. There is no escalation clause in the lease agreement. There are no restrictions imposed by lease arrangements. There are no sub-leases. The leases are cancellable.

7. The Company has a defined benefit gratuity plan. 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 scheme is funded with an insurance Company.

8. Charity and Donations includes Rs. 4.00 Lacs (Rs. 10.00 Lacs) paid to the Bhartiya Janata Party and Rs NIL (Rs. 5.00 Lacs) paid to West Bengal Pradesh Congress Committee for political purposes.

9. Related Party Disclosures

a) Name of the related parties: Subsidiary Companies

Cement Manufacturing Company Ltd.

AuroSundram Ply & Door Pvt. Ltd.

Megha Technical & Engineers Pvt. Ltd.

Meghalaya Power Ltd.

Star Cement Meghalaya Ltd.

NE Hills Hydro Ltd. (with effect from 3rd February, 2011)

Star Ferro & Cement Ltd. (with effect from 10th March, 2011)

Aegis Business Ltd.

Aegis Overseas Ltd.

Associates

Adonis Vyaper Pvt. Ltd. (with effect from 31st March, 2012) Apnapan Viniyog Pvt. Ltd. (with effect from 31st March, 2012) Ara Suppliers Pvt. Ltd. (with effect from 31st March, 2012) Arham Sales Pvt. Ltd. (with effect from 31st March, 2012)

Key Management Personnel

Sri Satya Brata Ganguly (Chairman) (Resigned on 12th March, 2012)

Sri Sajjan Bhajanka (Chairman)

Sri SanjayAgarwal (Managing Director)

Sri Prem Kumar Bhajanka (Managing Director)

Sri Vishnu Khemani (Managing Director)

Sri Hari Prasad Agarwal (Vice Chairman)

Sri AjayBaldawa (Executive Director)

Sri Brij Bhushan Agarwal (Director) (Resigned on 10th May, 2011)

Sri Arun Kumar Julasaria (Chief Financial Officer cum Company

Secretary)

Enterprises Owned/Influenced by Key Management Personnel or their relatives

Adonis Vyaper Pvt. Ltd. (upto 30th March, 2012)

Apnapan Viniyog Pvt. Ltd. (upto 30th March, 2012)

Ara Suppliers Pvt. Ltd. (upto 30th March, 2012)

Arham Sales Pvt. Ltd. (upto 30th March, 2012)

Brijdham Merchants Pvt. Ltd.

Pacific Plywoods Pvt. Ltd.

Shyam Century Cement Industries Ltd.

Sriram Merchants Pvt. Ltd.

SriramVanijyaPvt.Ltd.

Sumangal Business Pvt. Ltd.

Sumangal International Pvt. Ltd._

Relatives of Key Management Personnel

Smt. Santosh Bhajanka (Wife of Sri Sajjan Bhajanka)

Smt. Divya Agarwal (Wife of Sri Sanjay Agarwal)

Smt. Sumitra Devi Agarwal (Wife of Sri Hari Prasad Agarwal)

Smt. Yash Bhajanka (Wife of Sri Prem Kumar Bhajanka)

Smt. Sudha Khemani (Wife of Sri Vishnu Khemani)

Sri Keshav Bhajanka (Son of Sri Sajjan Bhajanka)

Miss Nikita Agarwal (Daughter of Sri Sanjay Agarwal)

10. Foreign Exchange Loss Rs. 921.78 Lacs (Rs. 11.73 Lacs) (Net) towards creditors/debtors pertaining to specific segments has been included as unallocable income/expenses instead of the relevant segments results as the amount of such exchange gain/loss for different segments is not ascertainable.

11. The Company has paid anti dumping duty amounting to Rs. 156.73 Lacs (including Rs. 81.85 Lacs during the year) on import of phenol which in opinion of the management and based on a legal opinion, is in excess of actual margin of dumping of said materials and accordingly refundable in terms of Section 9AA of Custom Tariff Act, 1975 and hence the same is considered as receivable and included under the head Loans & Advances.

12. Previous year''s figures including those given in brackets have been re-arranged where necessary to conform to the current year''s classifications under Revised Schedule VI as stated in note l.l(i) above.

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Mar 31, 2011

(Rs. in Lacs)

As at As at 31.03.2011 31.03.2010

1. Estimated amount of contracts remaining to be executed on Capital Account (net of advances) and not provided for 271.89 893.23

2. Contingent Liabilities not provided for in respect of :-

a) Demands /Claims by various Government Authorities and others not acknowledged as debts:

i) Excise Duty/Service Tax 537.40 153.06

ii) Sales Tax/VAT 316.20 364.05

iii) Income Tax 285.52 175.19

iv) Others 34.32 -

Total 1,173.44 692.30

b) Un-redeemed bank guarantees 507.11 122.21

c) Bills discounted with banks 751.31 809.64

d) Letters of credit issued by the banks 2,086.46 947.91

e) Custom Duty on import under EPCG Scheme against which Export obligation is to be fulfilled 24.39 61.35

3. There is a diminution of Rs. 66.30 lacs (Rs. Nil) in the value of a quoted investment based on the last quoted price. The above investment being long term and strategic in nature, the said diminution, in the opinion of the management, is temporary in nature and hence no provision is considered necessary

4. Excise Duty on sales has been reduced from sales in Profit & Loss Account and excise duty on increase/decrease in stocks has been considered as income/Expenses in Profit & Loss Account.

5. In terms of Section 115-O of the Income Tax Act,1961, dividend on Equity shares is not subject to tax on dividend to the extent of dividend received from a subsidiary company during the year.

8. Sales Tax /VAT and Excise duty debited to Profit and loss account are Net of Subsidy Rs 152.02 lacs (Rs.104.50 lacs) and Rs. 436.67 lacs (Rs.108.52) respectively.

10. (a) Operating Lease

Certain office premises, depots, etc. are obtained on operating lease. The lease terms are for 1-3 years and are renewable for further period either mutually or at the option of the Company. There is no escalation clause in the lease agreement. There are no restrictions imposed by lease arrangements. There are no subleases. The leases are cancellable.

11. The Company has a defined benefit gratuity plan. 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 scheme is funded with an insurance company.

viii) Amount incurred as expense for defined contribution to Provident Fund is Rs. 243.13 lacs (Rs. 214.21 lacs).

ix) The estimates of future salary increases considered in actuarial valuation, take account of inflation, seniority, promotion and other relevant factors, such as supply and demand in the employment market..

x) The Company expects to contribute Rs. 125 lacs (Rs. 85 lacs) to Gratuity fund in 2011-2012.

15. Charity and Donations includes Rs. 10.00 lacs (Rs. 5.00 lacs) paid to the Bhartiya Janata Party and Rs. 5.00 lacs (Rs. Nil) paid to West Bengal Pradesh Congress Committee for political purposes.

16. Related Party Disclosures

a) Name of the related parties:

Subsidiary Companies

Cement Manufacturing Company Ltd.

Auro Sundram Ply & Door Pvt. Ltd.

Megha Technical & Engineers Pvt. Ltd.

Meghalaya Power Ltd.

Star Cement Meghalaya Ltd.

Star Ferro & Cement Ltd. (with effect from 10th March, 2011)

Aegis Business Ltd.

Aegis Overseas Ltd.

NE Hills Hydro Ltd. (with effect from 3rd February, 2011)

Key Management Personnel

Sri Satya Brata Ganguly (Chairman)

Sri Sajjan Bhajanka (Managing Director)

Sri Sanjay Agarwal (Joint Managing Director)

Sri Prem Kumar Bhajanka (Joint Managing Director)

Sri Vishnu Khemani (Joint Managing Director)

Sri Hari Prasad Agarwal (Vice Chairman)

Sri Ajay Baldawa (Executive Director)

Sri Brij Bhushan Agarwal (Director)

Sri Arun Kumar Julasaria (Chief Financial Officer cum Company Secretary)

Enterprises Owned/ Influenced by Key Management Personnel or their relatives.

Adonis Vyaper Pvt. Ltd.

Amul Boards Pvt. Ltd.

Apnapan Viniyog Pvt. Ltd.

Ara Suppliers Pvt. Ltd.

Arham Sales Pvt. Ltd.

Brijdham Merchants Pvt. Ltd.

Namchic Tea Estate Pvt. Ltd.

Pacific Plywoods Pvt. Ltd.

Riangdo Veneers Pvt. Ltd.

Shyam Century Cement Industries Ltd.

Sriram Merchants Pvt. Ltd.

Sriram Vanijya Pvt. Ltd.

Sumangal Business Pvt. Ltd.

Sumangal International Pvt. Ltd.

Relatives of Key Management Personnel

Smt. Santosh Bhajanka (Wife of Sri Sajjan Bhajanka)

Smt. Divya Agarwal (Wife of Sri Sanjay Agarwal)

Smt. Sumitra Devi Agarwal (Wife of Sri Hari Prasad Agarwal)

Smt. Yash Bhajanka (Wife of Sri Prem Kumar Bhajanka)

Smt. Mittu Agarwal (Wife of Sri Brij Bhushan Agarwal)

Smt. Sudha Khemani (Wife of Sri Vishnu Khemani)

18. Foreign Exchange Loss of Rs. 142.05 lacs (Previous Year Gain of Rs. 1,895.79 lacs) (Net) towards creditors/debtors pertaining to specific segments has been included as unallocable income/expenses instead of the relevant segments results as the amount of such exchange gain/loss for different segments is not ascertainable.

19. The Company has paid anti dumping duty amounting to Rs. 74.88 lacs on import of phenol which in opinion of the management is in excess of actual margin of dumping of said materials and accordingly refundable in terms of Section 9AA of Custom Tariff Act, 1975 and hence the same is considered as receivable and included under the head Loans & Advances.

20. Previous year figures including those given in brackets, have been regrouped and / or rearranged, wherever necessary.

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Mar 31, 2010

1. a) Pursuant to the Scheme of Amalgamation ("the scheme") as approved by the Honble High Court at Guwahati, by an order dated 17th May, 2010, under section 394 of the Companies Act, 1956, Cent Ply Private Limited ("CPPL"), a wholly owned subsidiary of the Company, has been amalgamated with the Company with effect from 1st April, 2009.

b) The Amalgamating Company (CPPL) is engaged in manufacturing of plywood and allied products at its factory at Mirza, Palasbari, Assam.

c) The amalgamation has been accounted for under the "pooling of interests" method as prescribed by Accounting Standard (AS-14), "Accounting for Amalgamations". Pursuant to the Scheme, all the assets, liabilities and reserves of CPPL as at 1st April, 2009 have been transferred at their book values as given below. Though, the Scheme has become effective after the balance sheet date, it is operative from the appointed date i.e. 1st April, 2009 and accordingly, it has been given effect to in these accounts.

d) The Investments of Rs. 800 lacs in CPPL as appearing in the books of the Company and the paid up capital of Rs. 800 lacs appearing in books of CPPL stands cancelled.

e) The title deeds for freehold/leasehold land, buildings, licenses, agreements, loan documents etc. of the amalgamating company are in the process of being transferred in the name of the company.

2. Excise Duty on sales has been reduced from sales in Profit & Loss Account and excise duty on increase/decrease in stocks has been considered as income/expense in Profit & Loss Account.

3. In terms of Section 115-0 of the Income Tax Act, 1961, interim and final dividend on Equity shares is not subject to tax on dividend to the extent of interim dividend received from a subsidiary company during the year.

4. (a) Operating Lease

Certain office premises, depots, etc. are obtained on operating lease. The lease term are for 1-3 years and renewable for further period either mutually or at the option of the Company. There is no escalation clause in the lease agreement. There are no restrictions imposed by lease arrangements. There are no subleases. The leases are cancellable.

(b) Fixed Assets include certain Vehicles obtained on finance lease. The year-wise break-up and future obligation towards minimum lease payments of Rs. 880.29 lacs (Rs. 695.02 Lacs) consisting of present value of lease payments of Rs. 724.77 lacs (Rs. 551.02 Lacs) and financial charges Rs. 155.52 lacs (Rs. 143.99 Lacs) under 155.52 the respective agreements as on 31st March, 2010, is given below:

5. The Company has a defined benefit gratuity plan. Every employee who has completed five years or more of service is entitled to Gratuity on terms not less favourable than the provisions of The Payment of Gratuity Act, 1972. The scheme is funded with an insurance company.

The following tables summarise the components of net benefit expenses recognised in the Profit & Loss Account and the funded status and amounts recognised in the balance sheet for the Gratuity.

Notes:

a) Business Segments: The business segments have been identified on the basis of the products of the Company. Accordingly, the Company has identified following business segments:

Plywood - Plywood, Block-Board, Veneer & Timber

Laminate - Decorative Laminates & Pre-laminated Boards

Ferro-Alloys - Ferro Silicon

Power - Generation of Power

Logistic - Container Freight Station (CFS) and Jetty

Others - Mainly Trading of Chemicals and Minerals

b) Geographical Segments: The Company primarily operates in India and therefore the analysis of geographical segments is demarcated into India and overseas operations.

c) The company has common fixed assets for producing goods for domestic and overseas market. Hence separate figures for fixed assets/additions to fixed assets have not been furnished .

6. Foreign Exchange gain of Rs. 1895.79 lacs (Previous Year loss of Rs. 2724.86 lacs) (Net) towards creditors/debtors pertaining to specific segments has been included as unallocable income/expenses instead of the relevant segments results as the amount of such exchange gain/loss for different segments is not ascertainable.

7. Figures given in brackets are for the previous year and the same have been regrouped and/or rearranged, wherever necessary. Further, the current year figures being inclusive of the figures of Cent Ply Private Limited amalgamated with the company w.e.f. 1st April, 2009 (Pursuant to a scheme of amalgamation), are not comparable with the previous years figures.

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Mar 31, 2009

1. Excise Duty on stocks represents differential excise duty on opening and closing stock of finished goods.

2. In terms of Section 115-0 of the Income Tax Act, 1961, proposed dividend on Equity/Preference shares is not subject to corporate tax on dividend since the amount of proposed dividend is less than the interim dividend subsequently received from a subsidiary company after the balance sheet date.

3. Preliminary expenses, share issue expenses and amalgamation expenses were written off over a period of ten/five years till last year, however, the same has been fully written off during the year.

b) In view of the inadequacy of profit in the current year ended 31 st March, 2009, the remuneration paid to the Directors has exceeded the limit specified under section 198(1) and 309(3) of the Companies Act, 1956, by Rs 22 lacs for which the company is in the process of seeking approval from the shareholders of the company at the forthcoming Annual General Meeting.

4. Sales Tax /VAT debited to Profit and loss account is Net of Subsidy Rs 91.18 lacs (Rs.44.67 Lacs)

5. Based on the information / documents available with the Company, no creditor is covered under The Micro, Small and Medium Enterprises Development Act, 2006. As a result, no interest provision / payments has been made by the Company towards such creditors, if any, and no disclosures thereof are made in this accounts.

6. The Companys financial results for the current year have been adversely affected due to significant depreciation in the value of Indian Rupee against various foreign currencies owing to abnormal financial conditions prevailing globally. Such differences aggregating to Rs 3266.61 Lacs, in relation to the operating balances, have been considered as exceptional items.

viii) Amount incurred as expense for defined contribution to Provident Fund is Rs. 195.98 Lacs (Rs. 160.36 lacs).

ix) The estimates of future salary increases considered in actuarial valuation, take account of inflation, seniority, promotion and other relevant factors, such as supply and demand in the employment market.

x) The Company expects to contribute Rs. 130 lacs to Gratuity fund in 2009-2010.

7. Charity and Donations includes Rs. Nil (Previous Year Rs. 0.60 Lacs) paid to the Bhartiya Janata Party for political purposes.

8. Related Party Disclosures

a) Name of the related parties:

Subsidiary Companies

Cement Manufacturing Company Ltd.

Auro Sundram Ply and Door Pvt. Ltd.

Cent Ply Pvt. Ltd. (with effect from 1st October, 2008)

Megha Technical & Engineers Pvt. Ltd.

Meghalaya Power Ltd. (with effect from 14th July, 2008)

Star Cement Meghalaya Ltd.

Key Management Personnel

Sri Sajjan Bhajanka (Managing Director)

Sri Sanjay Agarwal (Joint Managing Director)

Sri Prem Kumar Bhajanka (Joint Managing Director) (with effect from 1st August, 2008)

Sri Vishnu Khemani (Joint Managing Director) (with effect from 1 st August, 2008)

Sri Hari Prasad Agarwal (Executive Director)

Sri Ajay Baldawa (Executive Director)

Sri Nag Raj Tater (Executive Director) (upto 16th April, 2008)

Sri Brij Bhushan Agarwal

Sri Arun Kumar Julasaria (Chief Financial Officer cum Company Secretary)

9. The Figures of previous year were audited by firms of Chartered Accountants other than S R Batliboi & Co. Figures given in brackets are for the previous year and the same have been regrouped and / or rearranged, wherever necessary.

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Mar 31, 2008

1. Amalgamation of Century Panels Private Limited, Sharon Veneers Private Limited and Sharon Wood Industries Private Limited with the Company.

a) Pursuant to the Scheme of Amalgamation (the scheme) erstwhile Century Panels Private Limited (hereinafter referred to as CPPL), erstwhile Sharon Veneers Private Limited (hereinafter referred as SVPL) and erstwhile Sharon Wood Industries Private Limited (hereinafter referred as SWIPL) have amalgamated with the Company, as approved by the members of the Company at court convened meeting held on 8th October, 2007 and subsequently sanctioned by the Honourable High Courts of Judicature at Delhi and Kolkata vide their orders dated 27th February, 2008 and 5th March, 2008 respectively and pursuant to filing of certified copies of the said orders with Ministry of Corporate Affairs on 1st April, 2008, the undertakings of CPPL, SVPL and SW1PL being all their assets and properties, both moveable and immoveable, industrial and other licences, all other interests, rights and powers of every kind, etc and all debts, liabilities including contingent liabilities, duties and obligations, have been transferred to and vested in the company retrospectively with effect from 1st April, 2007 (the Appointed Date).

The Scheme has accordingly been given effect to in these accounts.

b) CPPL, SVPL and SWIPL were engaged in manufacturing of Plywood and allied products.

c) In accordance with the scheme following fully paid shares are to be issued, to the respective shareholders of CPPL, SVPL and SWIPL:

- 14,51,622 equity shares of Rs. 10/- each of the company in the ratio of 100 equity shares of Rs. 10/- each for every 320 equity shares of Rs. 10/- each held in CPPL

- 7,37,212 equity shares of Rs. 10/- each of the company in the ratio of 100 equity shares of Rs. 10/- each for every 61 equity shares of Rs. 10/- each held in SVPL

- 2,63,052 equity shares of Rs. 10/- each of the company in the ratio of 100 equity shares of Rs. 10/- each for every 19 equity shares of Rs. 100/- each held in SWIPL

- 5,00,000 9% redeemablepreference shares of Rs. 10/- each of the company in the ratio of ten preference shares of Rs. 10/- each for every one 9% redeemable preference share of Rs. 100/- each held in SWIPL. These shares would be redeemable at par at the end of 10th year from the date of allotment i.e; 18th September, 2002. These shares would carry a fixed cumulative dividend of 9% per annum.

The above equity shares shall rank pari-passu with the existing equity shares of the company.

The above shares have been allotted to respective shareholders of CPPL, SVPL and SWIPL on 16th April, 2008 and are shown under Share Capital Suspense Account as at 31st March, 2008 (Schedule AA).

d) The amalgamation has been accounted for under the "Pooling of Interest" method as prescribed by Accounting Standard (AS-14) issued by the Institute of Chartered Accountants of India. Accordingly, the assets and Liabilities of CPPL, SVPL and SWIPL as at 1st April, 2007 have been taken over at their respective book values. The balances in General Reserve (Rs. 0.18 Crores), Securities Premium (Rs. 1.02 Crores), Capital Reserve (Rs. 0.01 crores), Revaluation Reserve (Rs. 1.15 crores) and Profit & Loss Account (Rs. 4.78 crores) have been added to the Companys respective heads under Reserves & Surplus. The difference of Rs. 3.14 crores between paid up Share Capital of CPPL, SVPL and SWIPL and aggregate face value of shares issued by the Company has been added to General Reserve.

e) The income accruing and expenses incurred by CPPL, SVPL and SWIPL during the period from 1st April, 2007 to 31st March, 2008 have also been incorporated in these accounts. During this period CPPL, SVPL and SWIPL carried on existing business in "trust" and on behalf of the company and all vouchers, documents etc. for the said period are in the respective names of CPPL, SVPL and SWIPL.The title deeds for freehold land, buildings, licences, agreements, loan documents etc. are being transferred in the name of the company.

f) In view of aforesaid amalgamation with effect from 1st April, 2007, the figures for the current year are not comparable to those of previous year.

2. Estimated amount of contracts remaining to be executed on Capital Account and not provided (Net of advances) Rs. 0.31 Crores (Previous year Rs. 0.39 Crores).

(Rs. in Crores)

As at As at 31.03.2008 31.03.2007

3. Contingent Liabilities

(a) Guarantees issued by Banks 1.49 0.97 (b) Bills discounted by Banks 5.64 0.94 (c) Letters of Credit issued by Banks 18.32 10.73 (d) Export Obligations against EPCG License Scheme 0.70 15.32 (e) Claims against the company not acknowledged as debts :

- Excise Matters - - - Sales Tax/VAT 1.25 1.28 - Income Tax 2.96 1.32

4. In the opinion of the Management and to the best of their knowledge and belief the value on realization of loans, advances and other current assets in the ordinary course of business will not be less than the amount at which they are stated in the Balance Sheet.

5. Based on information/documents available with the company there was no amount due and outstanding as on 31st March, 2008 to be transferred to Investors Education and Protection Fund under Section 205C of the Companies Act, 1956.

6. (a) General Description of Lease Terms:

(i) Lease rentals are charged on the basis of agreed terms.

(ii) Assets are taken on lease over a period of 10 to 15 years.

(b) The Company has taken lands on operating lease basis and lease rent amounting to Rs. 0.70 Crores (P.Y. Rs. 0.11 Crores) has been charged to profit and loss account. The future minimum lease payments are as under:

7. In view of uncertainty in acceptability and realization, State Capital Investment Subsidy claim of Rs. 0.86 Crores has been written off and debited to Capital Reserve.

8. Miscellaneous Expenses includes Rs. 0.60 Lacs (Previous year Rs. 1.00 Lacs) paid to Bhartiya Janta Party towards political contribution.

9. Unhedged Foreign Currency Exposure as at 31.03.2008 Rs. 94.57 Crores (Previous year 39.77 Crores).

10. The Ministry of Corporate Affairs, Government of India vide its letter no. 47/228/2008-CL-III dated 2nd June, 2008 has exempted the company from attaching the Annual Reports and other particulars of its subsidiary companies along with the Annual Report of the company required u/s 212 of the Companies Act, 1956. Therefore, the said Reports of the subsidiary companies are not attached herewith. However,

11. Previous years figures have been regrouped / rearranged/ recasted wherever necessary, to make them comparable to current years figures.

12. Rupee Figures have been rounded to the nearest Crores unless otherwise stated.

---

Mar 31, 2007

Secured Loan Notes :

1. Rupee Term Loans of Rs. 1432.84 Lacs from banks are secured against first charge on fixed assets of companys Laminate unit at Bishnupur, Joka, South 24 Parganas and second charge on current assets of the companys Plywood and Laminate units at Bishnupur, Joka, South 24 Parganas.

2. Rupee Term Loan of Rs. 642.11 Lacs from banks and Rs. 1325 Lacs from a financial institution and Letters of Credit for Buyers Credit of Rs. 385.35 Lacs from banks, arc secured against first charge on fixed assets of companys Ferro Alloy and Power Units at Byrnihat, Meghalaya and second charge on current assets of the said unit.

3. Working capital facilities of Rs. 4133.85 Lacs from banks and Letter of Credit for Buyers Credit of Rs. 1730.49 lacs are secured against first charge on current assets of companys Plywood and Laminate Units, first charge on fixed assets of companys Plywood Unit and 2nd charge on fixed assets of companys Laminate Unit.

4. Working capital facilities of Rs. 829.40 Lacs from a bank is secured against first charge on current assets of companys Fcrro Alloy and Power Unit, and 2nd charge on fixed assets of the said units.

5. Term Loans and Working Capital facilities from Banks/Financial Institution are also guaranteed by some of the directors of the company.

6. Hire purchase finance from banks are secured against hypothecation of assets procured from such finance.

7. Secured loans due within one year Rs. 1011.44 Lacs. (P.Y.Rs. 826.99 Lacs)



Other Notes

(Rs. in Lacs) As at As at 31.03.2007 31.03.2006

1. Estimated amount of contracts remaining to be executed on Capital Account and not provided for (Net of advances) 38.51 34.25

2. Contingent Liabilities (a) Bank Guarantees issued by Banks 96.70 92.81 (b) Bills discounted by Banks 94.04 18.54 (c) Letters of Credit issued by Banks 1073.48 329.94 (d) Export Obligation against EPCG License Scheme 1532.16 1864.31 (e) Claims against the company not acknowledged as debts : Excise Matters - 16.78

- Sales Tax/VAT Matters 127.99 127.52 Income Tax Matters 132.32

3. Borrowing Costs Capitalized - 130.54 4. Payment made to Auditors during the year (a) Statutory Audit Fee 7.86 4.21 (b) Tax Audit Fee 0.22 0.15 (c) Certification Work 0.40 0.05 Total 8.48 4.41

5. Break up of Repairs & Maintenance

(a) Plant & Machinery 261.39 145.33 (b) Buildings 65.54 3.46 (c) Others 86.52 33.82 Total 413.45 182.61

6. In the opinion of the Management and to the best of their knowledge and belief the value on rcali/ation of loans, advances and other current assets in the ordinary course of business will not be less than the amount at which they are stated in the Balance Sheet.

7. Based on the information / documents available, in the opinion of the management, there was no amount due for more than 30 days to the small scale undertakings. Total amount due to small scale undertakings as on 3 1.03.2007-Nil.

8. Sundry Creditors include Rs. 245.74 lacs (previous year Rs. 2.98 lacs) due to subsidiary companies. Maximum amount due during the year Rs. 267.82 lacs (previous year Rs. 10.89 lacs)

9. Based on information/documents available with the company there was no amount due and outstanding as on 31 st March,2007 to be transferred to Investors Education and Protection Fund under section 205C of the Companies Act, 1956.

10. The Company had taken a Jetty situated at Falta Export Processing Zone on lease cum profit sharing basis from the Ministry of Commerce, Govt. of India, for a period often years w.c.f. 1st October,2001. As per terms of lease agreement the company is required to pay either a fixed rent of Rs. 2.50 lacs per annum or 25% of net revenue whichever is higher. All the incomes from this jetty operation arc shown as Income from services under the head Gross Income and all the expenditure including share of profit to the Ministry of Commerce are shown as Jetty Expenses under the head Operating and Other expenses in the Profit & Loss Account.

11. Segment Reporting

a. Primary Segment Reporting (by business segment)

Segment have been identified in line with the Accounting Standard on Segment Reporting (AS 17), taking into account the organizational structure as well as the differential risk and returns of these segments. Details of products included in each of the segments are as under-

Plywood Plywood, Block-Board, Veneer & Timber Laminate Decorative Laminates & Prclaminatcd Boards Ferro-Alloys Ferro Silicon Power Generation of power for captive consumption Others Mainly Jetty operations, Adhcsives & Chemicals

12. Unhedged Foreign Currency Exposure as at 31.03.2007 Rs. 3976.67 Lacs (P.Y.-Rs. 3641.77).

13. Previous years figures have been regrouped / rearranged/ recasted wherever necessary, to make them comparable to current years figures.

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Mar 31, 2006

1. Rupee Term Loan of Rs. 1705.52 Lacs from banks are secured against first charge on fixed assets on company's Laminate unit: at Bishnupur, Joka, South 24 Parganas and second charge on current assets of the company's Plywood and Laminate units at Bishnupur, Joka, South 24 Parganas.

2. Rupee Term loan of Rs. 1008.24 Lacs from banks and Rs. 1414.23 Lacs from a financial institution and Foreign Currency Term Loan of Rs. 393.27 Lacs from a bank are secured against first charge on fixed assets of company's Ferro Alloy and Power Units at Byrnihat. Meghalaya and second charge on current assets of the said unit.

3. Working capital facilities of Rs. 2641.44 Lacs from banks are secured against first charge on current assets of company's Plywood and Laminate Units, first charge on fixed assets of company's Plywood Unit and 2nd charge on fixed assets of company's Laminate Unit.

4. Working capital facilities of Rs. 670.58 Lacs from a bank are secured against first charge on current assets of company's Ferro Alloy and Power Units, and 2nd charge on fixed assets of the said units.

5. Term Loans and Working Capital facilities from Banks/Financial Institution are also guaranteed by some of the directors of the company.

6. Hire purchase finance from banks are secured against hypothecation of assets procured from such finance.

7. Secured loans due within one year Rs. 826.99 Lacs. (P.Y. 300.05 Lacs).

8. Amalgamation of Shyam Century Ferrous Limited with the Company

a) Pursuant to the Scheme of Amalgamation (the scheme) of the erstwhile Shyam Century Ferrous Limited (hereinafter referred to as SCFL) with the Company, as approved by the members of the Company and SCFL at court convened meetings held on 22nd August,2006 and 16th September,2006 respectively and subsequently sanctioned by the Honourable High Courts of Judicature at Kolkata and Guwahati on 8th November, 2006 and 22nd November,2006 respectively and pursuant to filing of certified copies of the said Orders on 7th December 2006, the undertaking of SCFL being all its assets and properties, both moveable and immoveable, industrial and other licences, all other interests, rights and powers of every kind, etc, and all debts, liabilities including contingent liabilities, duties and obligation, have been transferred to and vested in the company retrospectively with effect from 1st April, 2005 (the Appointed Date). The Scheme has accordingly been given effect to in these accounts.

b) SCFL was engaged in manufacturing of Ferro Alloys and generation of Power.

c) In accordance with the scheme, 95,21,865 Equity Shares of Rs. 10/- each of the Company, fully paid up and ranking pari-passu with the existing Equity Shares, are to be issued to the equity shareholders of SCFL in the ratio of 3 (three) equity shares of the company for every 4 (four) equity shares of Rs. 10/- each fully paid up in SCFL. Pending allotment, an amount of Rs. 952.19 lacs has been shown under the Share Capital Suspense Account as at 31st March, 2006 (Schedule AA).

d) The amalgamation has been accounted for under the "Pooling of Interest" method as prescribed by Accounting Standard (AS-14) issued by the Institute of Chartered Accountants of India. Accordingly, the assets and liabilities of SCFL as at 1st April, 2005 have been taken over at their book values. The balances in Capital Reserve (Rs. 1222.93 Lacs) and Profit & Loss Account (Rs. 943.43 Lacs) have been added to the Company's respective heads under Reserves & Surplus. The difference between the paid up Share Capital of SCFL and aggregate face value of shares to be issued by the Company, amounting to Rs. 317.40 Lacs has been shown as "Amalgamation Reserve" in Schedule `B'.

e) The income accruing and expenses incurred by SCFL during the period from 1st April, 2005 and 31st March, 2006 have also been incorporated in these accounts. During this period, SCFL carried on the existing business in "trust" and on behalf of the company and all vouchers, documents etc. for the said period are in the name of SCFL. The title deeds for freehold/leasehold land, buildings, licenses, agreements, loan documents etc. are being transferred in the name of the company.

f) Cement Manufacturing Company Limited (CMCL) subsidiary of erstwhile SCFL is recognized as subsidiary of the company w.e.f. 1st October, 2005, the date on which erstwhile SCFL became the holding company of CMCL.

g) Megha Technical & Engineers Pvt. Ltd. (METPL) subsidiary of CMCL is recognized as a subsidiary of the company w.e.f. 23rd March,2006, the date on which CMCL became the holding company.

h) In view of the aforesaid amalgamation with effect from 1st April, 2005, the figures for the current year are not directly comparable to those of the previous year.

9. During the year the company installed 13.80 MW Captive Power Plant at its Ferro-Alloy unit at Byrnihat, Meghalaya, which commenced operation from 25.03.06.

10. In the opinion of the Management and to the best of their knowledge and belief the value on realization of loans, advances and other current assets in the ordinary course of business will not be less than the amount at which they are stated in the Balance Sheet.

11. In pursuance of the "AS-28-Impairment of Assets" issued by the Institute of Chartered Accountants of India, the company has reviewed its carrying cost of assets with value in use (determined based on future earnings) and based on such review, management is of the view that in the current financial year adjustment for impairment of assets is not considered necessary.

12. Based on the information/documents available, in the opinion of the management, there was no amount due for more than 30 days to the small scale undertakings. Total amount due to small scale undertakings as on 31.03.2006-Nil.

13. Based on information/documents available with the company there was no amount due and outstanding to be transferred to Investors Education and Protection Fund under section 205C of the Companies Act, 1956.

14. Century International, a partnership firm in which the Company was a partner had been dissolved and as per Deed of Dissolution executed by all partners of the said firm, all the assets and liabilities as per audited balance sheet of the said firm as at 31st March,2005, after paying capital and other dues of other partners, have been taken over by the company.

15. The Company had taken a Jetty situated at Falta Export Processing Zone on lease cum profit sharing basis from the Ministry of Commerce, Govt. of India, for a period of ten years w.e.f. 1st October, 2001. As per terms of lease agreement the company is required to pay either a fixed rent of Rs. 2.50 lacs per annum or 25% of net revenue whichever is higher. All the incomes from this jetty operation are shown as Income from services under the head Gross Income and all the expenditure including share of profit to the Ministry of Commerce are shown as Jetty Expenses under the head Operating and Other expenses in the Profit & Loss Account.

16. Purchase of Raw materials include Rs. 24.15 lacs being difference arising out of foreign exchange fluctuation.

17. Figures have been rounded off to the nearest Lacs.

18. Previous year's figures have been regrouped and/or rearranged wherever necessary, to confirm to current year's classification.

19. To give effect to the scheme of amalgamation of Shyam Century Ferrous Limited with the Company, the accounts which were approved by the Board of Directors on 4th December, 2006 and reported by the Statutory Auditors, have been revised.

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Mar 31, 2005

SHARE CAPITAL:

Authorised Capital

149,60,000 (99,60,000) Equity Shares of Rs. 10/- each 40,000 Preference Shares of Rs. 10/- each

Issued Capital

1,03,81,548 (50,15,880) Equity Shares of Rs. 10/- each

Subscribed Capital

1,02,43,548 (48,77,880) Equity Shares of Rs. 10/- each (Fully paid-up) Add: 138000 Equity Shares forfeited

Of the above Equity Shares :

93,110 Equity Shares of Rs.10/- each were alloted pursuant to the scheme of amalgamation

9,99,630 Equity Shares of Rs. 10/- each were allotted as Bonus Shares by Capitalisation of Reserves during the year 1995-96.

34,14,516 Equity Shares of Rs. 10/- each were allotted as Bonus Shares by Capitalisation of Securities Premium and General Reserve during the year 2004-05

Notes:

1. Term Loans from banks are secured/to be secured by way of first charge on fixed assets of the Laminate Division and second charge on current assets of the Company.

2. Cash Credit and FCNRB Loans from banks are secured by way of hypothecation of current assets of the Company and first charge on fixed assets of the Plywood Division on pari passu basis.

3. Term Loans and Working Capital facilities from banks are also guaranteed by some of the Directors of the Company.

4. Hire purchase finance from banks are secured against hypothecation of respective vehicles.

5. Secured loans due within one year Rs.300.05 Lacs.

A. NOTES ON ACCOUNTS :

1. Contingent Liabilities:

(a) Bank Guarantees outstanding - Rs. 155.39 Lacs (Previous Year - Rs. 79.30 Lacs).

(b) Letter of credits issued by banks in respect of which liability has not been materialised- Rs.581.80 Lacs (Previous Year - Rs. 181.84 Lacs)

2. Estimated amount of Capital contracts remaining to be executed and not provided is Rs.74.04 Lacs (Previous Year Rs.250.60 Lacs) against which Rs.46.62 Lacs (Previous Year Rs.70.28 Lacs) has been given as advance.

3. Managerial remuneration is within limits prescribed in Section 198 & 309 of the Companies Act, 1956, read with Schedule XIII Part II Section I.

4. The Company has raised Rs.780.46 Lacs through Right Issue of 1951152 Equity Shares of Rs. 10/- each at a premium of Rs. 30/- each. The proceeds of the Right Issue have been utilized to part finance the cost of setting up of the Laminate Unit.

5. Auditors' Remuneration :

Current Year. Previous Year. Rs. in Lacs. Rs. in Lacs.

Audit Fees 3.61 2.80 Tax Audit 0.08 0.09 Certification Work 0.28 0.17 Total 3.97 3.06

6. No Provision for diminution in the value of long term investment have been made in the accounts as, in the opinion of the management, the fluctuations in the market value of such investments are not permanent in nature.

7. According to the information available with the Company there are no dues to Small Scale-Industrial Undertaking as on 31.03.2005, which are outstanding for more than 30 days.

8. There is no amount due and outstanding to be credited to the Investor's Education and Protection Fund.

9. The Institute of Chartered Accountants of India (ICAI) has made Accounting standard "AS 28 - Impairment of Assets ", mandatory for the accounting period commencing from 1st April 2004 and the Company has carried out comprehensive exercise to assess the impairment loss of Assets. Based on such exercise, there is no impairment of Assets. Accordingly, no adjustment in respect of loss on impairment of Assets has been made in the accounts.

10. (a) Previous Year's Figures have been regrouped and re-arranged wherever necessary.

(b) Figures have been rounded off to nearest rupees in Lacs.

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Mar 31, 2000

1. No provision for gratuity has been made in the accounts, which as per actuarial valuation as on 31.03.2000 comes to Rs.35,64,168/- (previous year Rs.27,99,081/-).

2. No provision for diminution in the value of Long-Term investments has been made in the accounts as the fluctuations in the market value of such investments are temporary in nature, in the opinion of the management.

3. Fixed Deposits of the company have been given to Bank as Margin Money.

4. Insurance Claim is accounted for as and when received.

5. Advance Income Tax and T.D.S. receivable are shown as net of provision of Income Tax.

6. Method of valuation of inventory other than finished goods has been changed from at Cost to lower of cost or net realisable value to comply with AS-2 issued by ICAI, however there is no impact on profit for the year due to such change and also on the value of inventory.

7. The Company has invested in Century International, a partnership firm with a total capital of Rs4,44,189 comprising of the following partners each entitled to share the percentage of profit as appearing against their name below :

(a) Sanjay Agarwal - l%,(b) Sajjan Bhajanka - l%,(c) Rajesh Agarwal - l%,(d) Divya Agarwal - 3.5% e) Santosh Bhajanka - 3.5%,(f) Century Plyboards (I) Ltd. - 90%.

8. Contingent Liabilities :

a) Unegotiated Irrecoverable Letter of Credit Rs.3,50,54,870/- (Previous Year Rs.1,77,63,716/-)

b) Estimated amount of Capital contracts remaining to be executed and not provided is Rs. 1056490/-(Previous Year Rs.9,96,210/-) against which Rs.357647/- (Previous Year Rs.4,13,000/-) has been given as Advance.

c) The Company has paid Rs 5,40,738/- as advance under protest to WBSEB against their final surcharge bill, however the matter is yet to be settled.

d) Income - Tax Demand for the assessment Year 1996-97, amounting to Rs 4.82 Lacs under dispute.

9. The company has no Small Scale - industrial undertaking to whom the company owes Rs 100000/- or more for a period exceeding 30 days as on 31.3.2000

10. Depreciation on revaluation of fixed assets has not been provided. The impact of such non provi sion on fixed assets and reserves & surplus at the year end has not been ascertained

11. Managerial remuneration is within limits prescribed in Section 198 & 309 of the Companies Act 1956 read with Schedule XIII Part II Section I.

12. Previous years figures have been regrouped and re-arranged wherever necessary.

13. Figures have been rounded off to nearest rupee.

14. Previous years Figures have been given in brackets.

15. Balance Sheet Abstract and Companys General Business Profile.