Click it and Unblock the Notifications
Notes to Accounts of Emami Paper Mills Ltd.
Mar 31, 2025
j) Provisions and Contingent Liabilities:
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. Provisions are measured at the best estimate of the expenditure
required to settle the present obligation at the Balance Sheet date.
If the effect of the time value of money is material, provisions are discounted to reflect its present value using a current
pre-tax rate that reflects the current market assessments of the time value of money and the risks specific to the obligation.
When discounting is used, the increase in the provision due to the passage of time is recognised as a finance cost.
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.
k) Revenue Recognition
Sales represents amounts received and receivable from the goods supplied to the customers. Sales are recognized when
control of the goods has been transferred to the customer. Controls are transferred by satisfying the performance obligation
of the contract. Revenue towards satisfaction of a performance obligation is measured at the transaction price (net of
variable consideration) allocated to that performance obligation. The transaction price of the goods sold is net of variable
consideration on account of various discounts and schemes offered by the Company as part of the contract.
Income from export incentives such as duty drawback and premium on sale of import licenses are recognised on accrual basis.
Incentives are recognized when there is reasonable assurance that the Company will comply with the conditions and the
incentive will be received. Duties and taxes waivers for capital assets purchased under Export Promotion Credit Guarantee
(EPCG) schemes are recorded as deferred revenue and recognized in Statement of Profit and Loss on a systematic basis
over the periods in which the related performance obligations are fulfilled.
Dividend income is recognized when the unconditional right to receive the income is established. Income from interest on
deposits, loans and interest bearing securities is recognized on a time proportionate method using underlying interest rates.
Insurance claims are recognised when there exists no significant uncertainty with regard to the amounts to be realised and
the ultimate collection thereof.
l) Government grants:
Government grants related to expenditure on property, plant and equipment are credited to the statement of profit and loss
over the useful lives of qualifying assets or other systematic basis representative of the pattern of fulfilment of obligations
associated with the grant received. Government grants received is subject to any condition to be fulfilled by the Company,
recognition of grant in the statement of profit and loss is made on a systematic basis in proportion to fulfillment of such
condition. Total grants received less the amounts credited to the statement of profit and loss at the balance sheet date are
included in the balance sheet as deferred income.
m) Expenditure:
Expenses are accounted on accrual basis.
n) Employee Benefits:
Defined contribution plans
Contributions to defined contribution schemes such as employees'' state insurance, labour welfare fund, superannuation
scheme, employee pension scheme etc. are charged as an expense based on the amount of contribution required to be
made as and when services are rendered by the employees. Company''s provident fund contribution, in respect of certain
employees, is made to a government administered fund and charged as an expense to the Statement of Profit and Loss. The
above benefits are classified as Defined Contribution Schemes as the Company has no further defined obligations beyond
the monthly contributions.
Defined benefit plans
The Company''s Liabilities on account of Gratuity and Earned Leave on retirement of employees are determined at the end of
each financial year on the basis of actuarial valuation certificates obtained from Registered Actuary in accordance with the
measurement procedure as per Indian Accounting Standard (Ind AS)-19., ''Employee Benefits'' These liabilities are funded on
year-to-year basis by contribution to respective funds. The costs of providing benefits under these plans are also determined
on the basis of actuarial valuation at each year end. Actuarial gains and losses for defined benefit plans are recognized
through OCI in the period in which they occur. Re-measurements are not reclassified to profit or loss in subsequent periods.
The Defined Benefit Plan can be short term or Long terms which are defined below:
a. Short-term Employee Benefit
All employees'' benefits payable wholly within twelve months rendering services are classified as short term employee
benefits. Benefits such as salaries, wages, short-term compensated absences, performance incentives etc., and the
expected cost of bonus, ex-gratia are recognized during the period in which the employee renders related service.
b. Long-term Employee Benefits
Compensated absences which are not expected to occur within 12 months after the end of the period in which the
employee renders the related services are recognized as a liability at the present value of the defined benefit obligation
at the balance sheet date.
o) Impairment of Non-Financial Assets:
At each balance sheet date, the Company reviews the carrying values of its property, plant and equipment and intangible
assets to determine whether there is any indication that the carrying value of those assets may not be recoverable through
continuing use. If any such indication exists, the recoverable amount of the asset is reviewed in order to determine the
extent of impairment loss (if any). Where the asset does not generate cash flows that are independent from other assets, the
Company estimates the recoverable amount of the cash generating unit to which the asset belongs.
Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future
cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments
of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been
adjusted. An impairment loss is recognised in the statement of profit and loss as and when the carrying value of an asset
exceeds its recoverable amount.
Where an impairment loss subsequently reverses, the carrying value of the asset (or cash generating unit) is increased to
the revised estimate of its recoverable amount so that the increased carrying value does not exceed the carrying value that
would have been determined had no impairment loss been recognised for the asset (or cash generating unit) in prior years.
A reversal of an impairment loss is recognised in the statement of profit and loss immediately.
p) Extinguishment of financial liabilities with equity instrument
When any financial liability is extinguished in exchange of equity instruments; the difference if any, between the carrying
amount of the financial liability extinguished and the fair value of equity instrument issued or exchanged (whether explicitly
or constructively) is recognized in profit and loss statement in the period in which such extinguishment takes place.
q) Income Taxes:
Income tax expense for the year comprises of current tax and deferred tax. It is recognised in the Statement of Profit and
Loss except to the extent it relates to an item which is recognised directly in equity or in other comprehensive income.
Current tax
Current tax is the expected tax payable/receivable on the taxable income/ loss for the year using applicable tax rates at the
Balance Sheet date, and any adjustment to taxes in respect of previous years.
Deferred tax
Deferred tax is provided using the balance sheet approach on temporary differences at the reporting date between the
tax bases of assets and liabilities and their carrying amounts for financial reporting purpose at reporting date. Deferred
income tax assets and liabilities are measured using tax rates and tax laws that have been enacted or substantively enacted
by the balance sheet date and are expected to apply to taxable income in the years in which those temporary differences
are expected to be recovered or settled. The effect of changes in tax rates on deferred income tax assets and liabilities is
recognized as income or expense in the period that includes the enactment or the substantive enactment date. A deferred
income tax asset is recognized to the extent that it is probable that future taxable profit will be available against which the
deductible temporary differences and tax losses can be utilized. The Company offsets current tax assets and current tax
liabilities, where it has a legally enforceable right to set off the recognized amounts and where it intends either to settle on a
net basis, or to realize the asset and settle the liability simultaneously.
Deferred tax assets include Minimum Alternate Tax (MAT) paid in accordance with the tax laws in India, which is likely to give
future economic benefits in the form of availability of set off against future income tax liability. MAT is recognised as deferred
tax assets in the Balance Sheet when the asset can be measured reliably and it is probable that the future economic benefit
associated with the asset will be realised.
r) Leases:
Ind AS 116 requires lessees to determine the lease term as the non-cancellable period of a lease adjusted with any option
to extend or terminate the lease, if the use of such option is reasonably certain. The company makes an assessment on the
expected lease term on a lease-by-lease basis and thereby assesses whether it is reasonably certain that any options to
extend or terminate the contract will be exercised. In evaluating the lease term, the Company considers factors such as any
significant leasehold improvements undertaken over the lease term, costs relating to the termination of the lease and the
importance of the underlying asset to Emami''s operations taking into account the location of the underlying asset and the
availability of suitable alternatives. The lease term in future periods is reassessed to ensure that the lease term reflects the
current economic circumstances.
s) Foreign Currency Transactions and Translations
Foreign currency transactions are translated into the functional currency using exchange rates at the date of the transaction.
Foreign exchange gains and losses from settlement of these transactions are recognised in the Statement of Profit and Loss
at the end of each reporting period.
In accordance with Ind AS 101, the company has continued capitalization of exchange differences arising on long-term
foreign currency monetary items outstanding as on 31st March, 2016 in accordance with paragraph 46A of Accounting
Standard 11, "The Effect of Changes in Foreign Exchange Rates". Accordingly, exchange differences arising from such long
term foreign currency monetary items relating to the acquisition of a depreciable asset are added to or deducted from the
cost of the depreciable capital asset. Other exchange differences are recognized as income or expenses in the Statement of
Profit & Loss.
Monetary Assets and Liabilities in foreign currency that are outstanding at the year end are translated at the year end
exchange rates and the resultant gain/loss is accounted for in the Statement of Profit & Loss.
t) Derivatives and Hedge Accounting
Derivatives are initially recognised at fair value and are subsequently remeasured to their fair value at the end of each
reporting period. The resulting gains / losses is recognised in the Statement of Profit and Loss immediately unless the
derivative is designated and effective as a hedging instrument, in which event the timing of recognition in profit or loss /
inclusion in the initial cost of non-financial asset depends on the nature of the hedging relationship and the nature of the
hedged item.
The Company complies with the principles of hedge accounting where derivative contracts are designated as hedge
instruments. At the inception of the hedge relationship, the Company documents the relationship between the hedge
instrument and the hedged item, along with the risk management objectives and its strategy for undertaking hedge
transaction, which can be a fair value hedge or a cash flow hedge.
a. Fair value hedges -
Changes in fair value of the designated portion of derivatives that qualify as fair value hedges are recognised in profit or
loss immediately, together with any changes in the fair value of the hedged asset or liability that are attributable to the
hedged risk. The change in the fair value of the designated portion of hedging instrument and the change in fair value
of the hedged item attributable to the hedged risk are recognised in the Statement of Profit and Loss in the line item
relating to the hedged item.
Hedge accounting is discontinued when the hedging instrument expires or is sold, terminated, or exercised, or when it
no longer qualifies for hedge accounting. The fair value adjustment to the carrying amount of the hedged item arising
from the hedged risk is amortised to profit or loss from that date.
b. Cash flow hedges -
The effective portion of changes in the fair value of derivatives that are designated and qualify as cash flow hedges is
recognised in the other comprehensive income. The gains / losses relating to the ineffective portion is recognised in the
Statement of Profit and Loss.
Amounts previously recognised and accumulated in other comprehensive income are reclassified to profit or loss when
the hedged item affects the Statement of Profit and Loss. However, when the hedged item results in the recognition of a
non-financial asset, such gains / losses are transferred from equity (but not as reclassification adjustment) and included
in the initial measurement cost of the non-financial asset.
Hedge accounting is discontinued when the hedging instrument expires or is sold, terminated, or exercised, or when it
no longer qualifies for hedge accounting. Any gains/losses recognised in other comprehensive income and accumulated
in equity at that time remains in equity and is reclassified when the underlying transaction is ultimately recognised.
When an underlying transaction is no longer expected to occur, the gains / losses accumulated in equity is recognised
immediately in the Statement of Profit and Loss.
u) Segment Reporting:
An operating segment is a component of the Company that engages in business activities from which it may earn revenues
and incur expenses, whose operating results are regularly reviewed by the company''s chief operating decision maker to
make decisions for which discrete financial information is available. Based on the management approach as defined in Ind AS
108, the chief operating decision maker evaluates the Company''s performance and allocates resources based on an analysis
of various performance indicators by business segments and geographic segments.
v) Earnings Per Share:
Basic earnings per share is computed by dividing the net profit for the period attributable to the equity shareholders of the
Company by the weighted average number of equity shares outstanding during the period. The weighted average number
of equity shares outstanding during the period and for all periods presented is adjusted for events, such as bonus shares,
other than the conversion of potential equity shares that have changed the number of equity shares outstanding, without a
corresponding change in resources.
For the purpose of calculating diluted earnings per share, the net profit for the period attributable to equity shareholders
and the weighted average number of shares outstanding during the period is adjusted for the effects of all dilutive potential
equity shares.
w) Cash Flow Statement:
Cash flows are reported using the indirect method, whereby profit for the period is adjusted for the effects of transactions
of a non-cash nature, any deferrals or accruals of past or future operating cash receipts or payments and item of income or
expenses associated with investing or financing cash flows. The cash flows from operating, investing and financing activities
of the Company are segregated.
x) Borrowing Costs
Borrowing costs directly attributable to the acquisition, construction or production of an asset that necessarily takes a
substantial period of time to get ready for its intended use or sale are capitalised as part of the cost of the asset. All other
borrowing costs are expensed in the period in which they occur. Borrowing costs consist of interest and other costs that an
entity incurs in connection with the borrowing of funds. Borrowing cost also includes exchange differences to the extent
regarded as an adjustment to the borrowing costs.
Discounts or premiums and expenses on the issue of debt securities are amortised over the term of the related securities
and included within borrowing costs. Premiums payable on early redemptions of debt securities, in lieu of future finance
costs, are written off as borrowing costs when paid.
y) Non -Current Assets Held for Sale
The Company classifies assets and disposal groups as held for sale if their carrying amounts will be recovered principally
through a sale rather than through continuing use and a sale is considered highly probable.
The sale is considered highly probable when the management has a committed plan for selling those assets and the sale
is expected to be completed sale within one year from the date of classification as held for sale. The actions required to
complete the plan of sale should indicate that it is unlikely that significant changes to the plan will be made or that the plan
will be withdrawn.
Assets held for sale and disposal groups are measured at the lower of their carrying amount and the fair value less cost
of disposal.
Immediately before the initial classification of the asset (or disposal group) as held for sale, the carrying amounts of the asset
(or all the assets and liabilities in the group) are measured in accordance with applicable Ind AS.
Property, plant and equipment and intangible assets once classified as held for sale are not depreciated or amortized.
z) Fair value measurements
The Company measures financial instruments such as derivatives and certain investments, at fair value at each balance
sheet date.
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. The fair value measurement is based on the presumption that the transaction
to sell the asset or transfer the liability takes place either:
¦ In the principal market for the asset or liability.
Or
¦ In the absence of a principal market, in the most advantageous market for the asset or liability.
The principal or the most advantageous market must be accessible by the Company.
All assets and liabilities for which fair value is measured or disclosed in the financial statements are categorised within the
fair value hierarchy, described as follows, based on the lowest level input that is significant to the fair value measurement as
a whole;
Level 1- Quoted (unadjusted) market prices in active markets for identical assets or liabilities.
Level 2- Valuation techniques for which the lowest level input that is significant to the fair value measurement is directly or
indirectly observable.
Level 3- Valuation techniques for which the lowest level input that is significant to the fair value measurement is unobservable.
For the purpose of fair value disclosures, the Company has determined classes of assets and liabilities on the basis of the
nature, characteristics and risks of the asset or liability and the level of the fair value hierarchy as explained above.
Convertible Non-Cumulative Redeemable Preference Shares (OCRPS). The company had the option for converting the OCRPS Into
a fixed number of equity shares upon the completion of 12 years from the date of allotment. Additionally, provisions existed for early
redemption or conversion, subject to mutual agreement between the Company and the OCRPS holders at a duly convened meeting.
However, the Company''s option to convert the OCRPS into equity shares was subject to a knock-out condition, whereby such
conversion would become non-exercisable if the average market price of the Company''s equity shares during the 26 weeks
immediately preceding the redemption or proposed conversion date was less than H180 per share. Upon the occurrence of such an
event, the Company would be obligated to redeem the OCRPS at a predetermined value.
On the scheduled date of redemption/conversion of 20,00,000 shares i.e., 28th March, 2025, the knock-out condition was triggered,
as the average market price of the equity shares fell below H180 per share. Consequently, the Company was not permitted to exercise
the option of conversion.
Subsequently, with the prior approval of both the OCRPS holders and the equity shareholders, the tenure of the said preference
shares has been extended by an additional four years and the shares have been reclassified as 8% Non-Convertible Non-Cumulative
Preference Shares (Series I NCRPS), bearing the same 8% non-cumulative dividend.
These Series I NCRPS shall be redeemable at a premium of H716 per share, and the redemption shall take place at the end of four
years from the date of variation, i.e., upon completion of 16 years from the original date of allotment. These Series 1 NCRPS may be
redeemed before maturity at mutually agreed premium.
The OCRPS is classified as an equity instrument, and its classification is evaluated at each reporting period. Based on the Company''s
evaluation, supported by the opinion of an independent expert, no change in classification is required for the current year.
The NCRPS is classified as long-term debt, measured at an amortized cost from the date of variation in its terms. The difference
in valuation arising from the reclassification of 20,00,000 Preference Shares from equity to debt has been adjusted against
retained earnings
The Company declares and pays dividends in Indian Rupees on a pro-rata basis from the date of allotment. Dividends proposed by the
Board of Directors are subject to shareholder approval at the ensuing Annual General Meeting. Holders of OCRPS and NCRPS have
voting rights on matters relating to their respective classes of shares.
In the event of liquidation of the Company prior to conversion or redemption, OCRPS and NCRPS holders shall have priority over
equity shareholders in the repayment of capital.
Retained earnings
This represents the cumulative profits that the company has earned till date, less any transfers to General reserve, dividends or other
distributions paid to shareholders. and can be utilized in accordance with the provisions of the Companies Act, 2013"
Securities premium
This reserve represents the amount of premium received on issue of shares, which may be utilised for purposes specified under the
Companies Act, 2013.
General reserve
This represents free reserves of the Company created through transfer of profits from retained earnings.
Capital reserve
This reserve represents the excess of net assets purchased over consideration paid against the identifiable assets.
Equity instruments through other comprehensive income
This reserve represents the cumulative gains (net of losses) arising on the valuation of Equity instruments measured at fair value
through Other Comprehensive Income, net of amounts reclassified to retained earnings when those equity instruments are
disposed off.
Defined benefit plans through other comprehensive income
This reserve represents actuarial gain (net of losses) arising from the remeasurement of defined benefit plans including change in
actuarial assumptions of gratuity liability.
2.50 DISCLOSURES ON FINANCIAL INSTRUMENTS
This section gives an overview of the significance of financial instruments for the Company and provides additional information on
balance sheet items that contain financial instruments.
The details of material accounting policies, including the criteria for recognition, the basis of measurement and the basis on which
income and expenses are recognised in respect of each class of financial asset, financial liability and equity instrument are disclosed
in Note 2 (i) to the financial statements.
(a) Financial assets and liabilities
The following tables presents the carrying value and fair value of each category of financial assets and liabilities as at 31st March,
2025 and 31st March, 2024.
The company''s business activities are exposed to a variety of financial risks, namely liquidity risk, market risks and credit risk. The
Company''s senior management has the overall responsibility for establishing and governing the Company''s risk management
framework. The Company has established a Risk Management system, which is responsible for developing and monitoring the
Company''s risk management policies. The Company''s risk management policies are established to identify and analyse the risks faced
by the Company, to set and monitor appropriate risk limits and controls, periodically review the changes in market conditions and
reflect the changes in the policy accordingly. The key risks and mitigating actions are also placed before the Audit Committee of
the Company.
A. MANAGEMENT OF LIQUIDITY RISK
Liquidity risk is the risk that the Company will face in meeting its obligations associated with its financial liabilities. The Company''s
approach in managing liquidity is to ensure that it will have sufficient funds to meet its liabilities when due without incurring
unacceptable losses. In doing this, management considers both normal and stressed conditions.
The Company maintained a cautious liquidity strategy, with a positive cash balance throughout the year ended 31st March,
2025 and 31st March, 2024. Cash flow from operating activities provides the funds to service the financial liabilities on a day-to¬
day basis.
The Company regularly monitors the rolling forecasts to ensure it has sufficient cash on on-going basis to meet operational
needs. Any short term surplus cash generated, over and above the amount required for working capital management and other
operational requirements, is retained as cash and cash equivalents (to the extent required) and any excess is invested in interest
bearing term deposits and other highly marketable debt investments with appropriate maturities to optimise the cash returns on
investments while ensuring sufficient liquidity to meet its liabilities.
The following table shows the maturity analysis of the Company''s financial liabilities and financial asset based on contractually
agreed cash flows along with its carrying value as at the Balance Sheet date.
The above risks may affect the Company''s income and expenses, or the value of its financial instruments. The Company has a risk
management policy which not only covers the foreign exchange risks but also other risks associated with the financial assets and
liabilities such as interest rate risks and credit risks. The risk management policy is approved by the board of directors.
(i) Market risk
Market risk is the risk of any loss in future earnings, in realizable fair values or in future cash flows that may result from a
change in the price of a financial instrument. The value of a financial instrument may change as a result of changes in the
interest rates, foreign currency exchange rates, equity price fluctuations, liquidity and other market changes. Future specific
market movements cannot be normally predicted with reasonable accuracy.
a) Foreign currency exchange rate risk:
The fluctuation in foreign currency exchange rates may have potential impact on the statement of profit and loss and
equity, where any transaction references more than one currency or where assets/liabilities are denominated in a
currency other than the functional currency.
Considering the countries and economic environment in which the Company operates, its operations are subject to
risks arising from fluctuations in exchange rates. The risks primarily relate to fluctuations in U.S. dollar, Euro and GBP
against the functional currencies of the Company.
The Company, as per its risk management policy, uses forward cover and other derivative instruments primarily to hedge
foreign exchange exposure. Any weakening of the functional currency may impact the Company''s imports, exports and
cost of borrowings and consequently may impact profitability of the company.
The Company evaluates the impact of foreign exchange rate fluctuations by assessing its exposure to exchange rate risks.
It hedges a part of these risks by using derivative financial instruments in accordance with its risk management policies.
The foreign exchange rate sensitivity is calculated for each currency by aggregation of the net foreign exchange rate
exposure of a currency and a simultaneous parallel foreign exchange rates shift in the foreign exchange rates of each
currency by 1%.
1% appredation/depredation of the respective foreign currencies with respect to functional currency of the Company
would result in decrease/increase in the Company''s net profit/(loss) before tax by approximately H0.22 crores and H0.02
crores for financial assets and financial liabilities respectively for the year ended March 31, 2024.
b) Interest rate risk
Interest rate risk is measured by using the cash flow sensitivity for changes in variable interest rates. Any movement in
the reference rates could have an impact on the Company''s cash flows as well as costs.
The Company is subject to variable interest rates on some of its interest bearing liabilities. The Company''s interest
rate exposure is mainly related to debt obligations. The Company also uses a mix of interest rate sensitive financial
instruments to manage the liquidity and fund requirements for its day to day operations like short-term loans.
c) Equity Price risk
Equity Price Risk is related to the change in market reference price of the investments in equity securities. The company
is not an active investor in equity markets; it continues to hold certain investments in equity for long term value accretion
which are accordingly measured at fair value through Other Comprehensive Income.
The fair value of Company''s investment in quoted equity securities as at March 31, 2025 and March 31, 2024 was
H54.i1 crores, and H40.03 crores, respectively. A 10% change in equity price as at March 31, 2025 and March 31, 2024
would result in an impact of H5.41 crores and H4.00 crores, respectively.
(Note: The impact is indicated on equity before consequential tax impact, if any).
(ii) Credit risk
Credit risk is the risk of financial loss to the Company if a customer or counter-party fails to meet its contractual obligations.
The Company is exposed to credit risk mainly from trade receivables and other financial assets. The Company only deals with
parties which has good credit ratings / worthiness based on company''s internal assessment.
Trade receivables
Concentration of credit risk with respect to trade receivables are limited, due to the Company''s customer base being large
and diverse. All trade receivables are reviewed and assessed for default on a quarterly basis.
Our historical experience of collecting receivables is that credit risk is low. Hence, trade receivables are considered to be a
single class of financial assets.
Other financial assets
The Company maintains exposure in cash and cash equivalents, term deposits with banks, investments in treasury bills,
government securities, money market liquid mutual funds and derivative instrument with financial institutions. The Company
has set counter-parties limits based on multiple factors including financial position, credit rating, etc.
The Company''s maximum exposure to credit risk as at 31st March, 2025 and 31st March, 2024 is the carrying value of each
class of financial assets.
C. COMPETITION AND PRICE RISK MANAGEMENT
The Company faces competition from local and foreign competitors. Nevertheless, it believes that it has competitive advantage
in terms of high quality products and by continuously upgrading its expertise and range of products to meet the needs of
its customers.
D. COMMODITY PRICE RISK MANAGEMENT
Commodity price risk for the Company is mainly related to fluctuations in raw material prices linked to various external factors,
which can affect the production cost of the Company. Since the raw material cost costs is one of the primary costs drivers, any
fluctuation in raw material prices (pulp and waste paper etc.) can lead to variability in operating margin.
The company has developed sustainable relation with leading domestic and international suppliers of raw material, which
enable procurement at most competitive rates. Dedicated expert team and market intelligence supports the company
procurement functions.
E CAPITAL RISK MANAGEMENT
The Company''s policy is to maintain an adequate capital base with the objective to create value for the shareholders along
with maintaining creditor and market confidence. Capital includes issued capital, share premium and all other equity reserves
attributable to equity holders. In order to strengthen the capital base, the company may use appropriate means to enhance or
reduce capital, as the case may be.
2.54 FAIR VALUE HIERACHY
Level 1 - Quoted Prices (Unadjusted) in active markets for identical assets or liabilities.
Level 2 - Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (i.e. as
prices) or indirectly (i.e. derived from prices).
Level 3 - Inputs for the assets or liabilities that are not based on observable market data (unobservable inputs).
The following tables presents fair value hierachy of assets and liabilities measured at fair value on a recurring basis -
2.60 Long term leases
Company as lessee
The Company has long term lease contracts for lands used In Its business and operations. The lease terms ranges upto 99 years. The
Company''s obligations under Its leases are secured by the lessor''s title to the leased assets.
The carrying amounts of right-of-use assets and its movement during the year Is disclosed in Note no 2.1 under the head Leasehold
land (RoU Assets)
2.61 Short term leases
The Company''s leasing arrangements are in respect of short term leases. These leasing arrangements which are cancellable for period
of 11 months and the Company has elected not to recognize ROU assets hence, lease liabilities for short term leases and recognizes
the lease payments associated with these leases as an expense on a straight-line basis over the lease term. The Company has paid
lease rentals of H0.41 crore ( Previous year - H0.39 crore) which Is included in other expenses.
2.62 The Company''s business activity falls within a single primary business segment which Is "Manufacture of Paper and Paper
Boardâ and the Company primarily operates In India. As per Ind AS 108 "Operating Segmentsâ, specified under Section 133 of
the Companies Act, 2013, there are no reportable operating or geographical segments applicable to the Company.
2.64 The Company had foreign exchange earnings from export of H149.00 crores during the F.Y.2024-25 (last year - H114.97 crores).
2.65 Other Information in terms of the amendment in Schedule Ill of the Companies Act vide notification G.S.R. 207(E) dated 24th
March 2021.
a) The Company does not have any transactions with companies which are struck off under Section 288 of the Companies
Act 2013 or Section 560 of Companies Act, 1956 during the financial year.
b) The Company does not have any benami property, and no proceeding has been initiated or pending against the Company
for holding any benami property.
c) The Company has not traded or invested in crypto currency or virtual currency during the financial year.
d) The Company has not advanced or loaned or invested funds to any other person(s) or entity(ies), including foreign entities
(Intermediaries) with the understanding that the Intermediary shall:
i) 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
ii) Provide any Guarantee, Security, or the like to or on behalf of the Ultimate Beneficiaries.
e) The Company has not received any fund from any Person(s) or Entity(ies), including Foreign Entities (Funding Party) with
the understanding (whether recorded in writing or otherwise) that the Company shall:
i) 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
2.65 (Contd.)
ii) Provide any Guarantee, Security, or the like on behalf of the ultimate beneficiaries.
f) The Company have sanctioned borrowings/facilities from banks on the basis of security of current assets. The quarterly
returns or statements of current assets filed by the Company with banks and financial institutions are in agreement with
the books of accounts and there are no material discrepancies between them.
g) The Company has no such transaction which is not recorded in the Books of Accounts that has been surrendered or
disclosed as income during the year in the tax assessments under the Income Tax Act, 1961 (such as, search or survey or
any other relevant provisions of the Income Tax Act, 1961).
h) The Company has not been declared willful defaulter by any Banks or any other Financial Institution at any time during
the financial year.
i) The Company does not have any charges or satisfaction which is yet to be registered with ROC beyond the statutory period.
2.66The Board of Directors has recommended a dividend of H1.60/- per equity share (80%) having face value of H2 each and H8/- per
preference shares (8%) having face value of H100/- each for the financial year 2024-25.
2.67 Corresponding figures of the previous period have been regrouped/ rearranged wherever necessary.
The accompanying notes are an integral part of these financial statements
In terms of our attached report of even date
For S K Agrawal and Co Chartered Accountants LLP For and on behalf of the Board
Chartered Accountants
Firm Registration Number : 3O6O33E/ E3OO272 Aditya V. Agarwal Manish Goenka
Executive Chairman Vice Chairman
DIN :OO149717 DIN :OO363O93
Sandeep Agrawal
Partner
Membership No. - O58553
Vivek Chawla Mukesh Kumar Agarwal D. Banthiya
Place: Kolkata Whole-time Director & CEO Chief Financial Officer Company Secretary
Date: 20th May, 2025 DIN : O2696336 M.No.: F - 7790
Mar 31, 2024
j) Provisions and Contingent Liabilities:
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. Provisions are measured at the best estimate of the expenditure required to settle the present obligation at the Balance Sheet date.
If the effect of the time value of money is material, provisions are discounted to reflect its present value using a current pre-tax rate that reflects the current market assessments of the time value of money and the risks specific to the obligation. When discounting is used, the increase in the provision due to the passage of time is recognised as a finance cost.
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.
k) Revenue Recognition
Sales represents amounts received and receivable from the goods supplied to the customers. Sales are recognized when control of the goods has been transferred to the customer. Controls are transferred by satisfying the performance obligation of the contract. Revenue towards satisfaction of a performance obligation is measured at the transaction price (net of variable consideration) allocated to that performance obligation. The transaction price of the goods sold is net of variable consideration on account of various discounts and schemes offered by the Company as part of the contract.
Income from export incentives such as duty drawback and premium on sale of import licenses are recognised on accrual basis. Incentives are recognized when there is reasonable assurance that the Company will comply with the conditions and the incentive will be received. Duties and taxes waivers for capital assets purchased under Export Promotion Credit Guarantee (EPCG) schemes are recorded as deferred revenue and recognized in Statement of Profit and Loss on a systematic basis over the periods in which the related performance obligations are fulfilled.
Dividend income is recognized when the unconditional right to receive the income is established. Income from interest on deposits, loans and interest bearing securities is recognized on a time proportionate method using underlying interest rates.
Insurance claims are recognised when there exists no significant uncertainty with regard to the amounts to be realised and the ultimate collection thereof.
l) Government grants:
Government grants related to expenditure on property, plant and equipment are credited to the statement of profit and loss over the useful lives of qualifying assets or other systematic basis representative of the pattern of fulfilment of obligations associated with the grant received. Government grants received is subject to any condition to be fulfilled by the Company, recognition of grant in the statement of profit and loss is made on a systematic basis in proportion to fulfillment of such condition. Total grants received less the amounts credited to the statement of profit and loss at the balance sheet date are included in the balance sheet as deferred income.
m) Expenditure:
Expenses are accounted on accrual basis.
n) Employee Benefits:
Defined contribution plans
Contributions to defined contribution schemes such as employees'' state insurance, labour welfare fund, superannuation scheme, employee pension scheme etc. are charged as an expense based on the amount of contribution required to be made as and when services are rendered by the employees. Company''s provident fund contribution, in respect of certain employees, is made to a government administered fund and charged as an expense to the Statement of Profit and Loss. The above benefits are classified as Defined Contribution Schemes as the Company has no further defined obligations beyond the monthly contributions.
Defined benefit plans
The Company''s Liabilities on account of Gratuity and Earned Leave on retirement of employees are determined at the end of each financial year on the basis of actuarial valuation certificates obtained from Registered Actuary in accordance with the measurement procedure as per Indian Accounting Standard (Ind AS)-19., ''Employee Benefits'' These liabilities are funded on year-to-year basis by contribution to respective funds. The costs of providing benefits under these plans are also determined on the basis of actuarial valuation at each year end. Actuarial gains and losses for defined benefit plans are recognized through OCI in the period in which they occur. Re-measurements are not reclassified to profit or loss in subsequent periods.
The Defined Benefit Plan can be short term or Long terms which are defined below:
a. Short-term Employee Benefit
All employees'' benefits payable wholly within twelve months rendering services are classified as short term employee benefits. Benefits such as salaries, wages, short-term compensated absences, performance incentives etc., and the expected cost of bonus, ex-gratia are recognized during the period in which the employee renders related service.
b. Long-term Employee Benefits
Compensated absences which are not expected to occur within 12 months after the end of the period in which the employee renders the related services are recognized as a liability at the present value of the defined benefit obligation at the balance sheet date.
o) Impairment of Non-Financial Assets:
At each balance sheet date, the Company reviews the carrying values of its property, plant and equipment and intangible assets to determine whether there is any indication that the carrying value of those assets may not be recoverable through continuing use. If any such indication exists, the recoverable amount of the asset is reviewed in order to determine the extent of impairment loss (if any). Where the asset does not generate cash flows that are independent from other assets, the Company estimates the recoverable amount of the cash generating unit to which the asset belongs.
Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted. An impairment loss is recognised in the statement of profit and loss as and when the carrying value of an asset exceeds its recoverable amount.
Where an impairment loss subsequently reverses, the carrying value of the asset (or cash generating unit) is increased to the revised estimate of its recoverable amount so that the increased carrying value does not exceed the carrying value that would have been determined had no impairment loss been recognised for the asset (or cash generating unit) in prior years. A reversal of an impairment loss is recognised in the statement of profit and loss immediately.
p) Extinguishment of financial liabilities with equity instrument
When any financial liability is extinguished in exchange of equity instruments; the difference if any, between the carrying amount of the financial liability extinguished and the fair value of equity instrument issued or exchanged (whether explicitly or constructively) is recognized in profit and loss statement in the period in which such extinguishment takes place.
q) Income Taxes:
Income tax expense for the year comprises of current tax and deferred tax. It is recognised in the Statement of Profit and Loss except to the extent it relates to an item which is recognised directly in equity or in other comprehensive income.
Current tax
Current tax is the expected tax payable/receivable on the taxable income/ loss for the year using applicable tax rates at the Balance Sheet date, and any adjustment to taxes in respect of previous years.
Deferred tax
Deferred tax is provided using the balance sheet approach on temporary differences at the reporting date between the tax bases of assets and liabilities and their carrying amounts for financial reporting purpose at reporting date. Deferred income tax assets and liabilities are measured using tax rates and tax laws that have been enacted or substantively enacted by the balance sheet date and are expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect of changes in tax rates on deferred income tax assets and liabilities is recognized as income or expense in the period that includes the enactment or the substantive enactment date. A deferred income tax asset is recognized to the extent that it is probable that future taxable profit will be available against which the deductible temporary differences and tax losses can be utilized. The Company offsets current tax assets and current tax liabilities, where it has a legally enforceable right to set off the recognized amounts and where it intends either to settle on a net basis, or to realize the asset and settle the liability simultaneously.
Deferred tax assets include Minimum Alternate Tax (MAT) paid in accordance with the tax laws in India, which is likely to give future economic benefits in the form of availability of set off against future income tax liability. MAT is recognised as deferred tax assets in the Balance Sheet when the asset can be measured reliably and it is probable that the future economic benefit associated with the asset will be realised.
r) Leases:
Ind AS 116 requires lessees to determine the lease term as the non-cancellable period of a lease adjusted with any option to extend or terminate the lease, if the use of such option is reasonably certain. The company makes an assessment on the expected lease term on a lease-by-lease basis and thereby assesses whether it is reasonably certain that any options to extend or terminate the contract will be exercised. In evaluating the lease term, the Company considers factors such as any significant leasehold improvements undertaken over the lease term, costs relating to the termination of the lease and the importance of the underlying asset to Emami''s operations taking into account the location of the underlying asset and the availability of suitable alternatives. The lease term in future periods is reassessed to ensure that the lease term reflects the current economic circumstances.
s) Foreign Currency Transactions and Translations
Foreign currency transactions are translated into the functional currency using exchange rates at the date of the transaction. Foreign exchange gains and losses from settlement of these transactions are recognised in the Statement of Profit and Loss at the end of each reporting period.
In accordance with Ind AS 101, the company has continued capitalization of exchange differences arising on long-term foreign currency monetary items outstanding as on 31st March, 2016 in accordance with paragraph 46A of Accounting Standard 11, "The Effect of Changes in Foreign Exchange Ratesâ. Accordingly, exchange differences arising from such long term foreign currency monetary items relating to the acquisition of a depreciable asset are added to or deducted from the cost of the depreciable capital asset. Other exchange differences are recognized as income or expenses in the Statement of Profit & Loss.
Monetary Assets and Liabilities in foreign currency that are outstanding at the year end are translated at the year end exchange rates and the resultant gain/loss is accounted for in the Statement of Profit & Loss.
t) Derivatives and Hedge Accounting
Derivatives are initially recognised at fair value and are subsequently remeasured to their fair value at the end of each reporting period. The resulting gains / losses is recognised in the Statement of Profit and Loss immediately unless the derivative is designated and effective as a hedging instrument, in which event the timing of recognition in profit or loss /
inclusion in the initial cost of non-financial asset depends on the nature of the hedging relationship and the nature of the hedged item.
The Company complies with the principles of hedge accounting where derivative contracts are designated as hedge instruments. At the inception of the hedge relationship, the Company documents the relationship between the hedge instrument and the hedged item, along with the risk management objectives and its strategy for undertaking hedge transaction, which can be a fair value hedge or a cash flow hedge.
a. Fair value hedges -
Changes in fair value of the designated portion of derivatives that qualify as fair value hedges are recognised in profit or loss immediately, together with any changes in the fair value of the hedged asset or liability that are attributable to the hedged risk. The change in the fair value of the designated portion of hedging instrument and the change in fair value of the hedged item attributable to the hedged risk are recognised in the Statement of Profit and Loss in the line item relating to the hedged item.
Hedge accounting is discontinued when the hedging instrument expires or is sold, terminated, or exercised, or when it no longer qualifies for hedge accounting. The fair value adjustment to the carrying amount of the hedged item arising from the hedged risk is amortised to profit or loss from that date.
b. Cash flow hedges -
The effective portion of changes in the fair value of derivatives that are designated and qualify as cash flow hedges is recognised in the other comprehensive income. The gains / losses relating to the ineffective portion is recognised in the Statement of Profit and Loss.
Amounts previously recognised and accumulated in other comprehensive income are reclassified to profit or loss when the hedged item affects the Statement of Profit and Loss. However, when the hedged item results in the recognition of a non-financial asset, such gains / losses are transferred from equity (but not as reclassification adjustment) and included in the initial measurement cost of the non-financial asset.
Hedge accounting is discontinued when the hedging instrument expires or is sold, terminated, or exercised, or when it no longer qualifies for hedge accounting. Any gains/losses recognised in other comprehensive income and accumulated in equity at that time remains in equity and is reclassified when the underlying transaction is ultimately recognised. When an underlying transaction is no longer expected to occur, the gains / losses accumulated in equity is recognised immediately in the Statement of Profit and Loss.
u) Segment Reporting:
An operating segment is a component of the Company that engages in business activities from which it may earn revenues and incur expenses, whose operating results are regularly reviewed by the company''s chief operating decision maker to make decisions for which discrete financial information is available. Based on the management approach as defined in Ind AS 108, the chief operating decision maker evaluates the Company''s performance and allocates resources based on an analysis of various performance indicators by business segments and geographic segments.
v) Earnings Per Share:
Basic earnings per share is computed by dividing the net profit for the period attributable to the equity shareholders of the Company by the weighted average number of equity shares outstanding during the period. The weighted average number of equity shares outstanding during the period and for all periods presented is adjusted for events, such as bonus shares, other than the conversion of potential equity shares that have changed the number of equity shares outstanding, without a corresponding change in resources.
For the purpose of calculating diluted earnings per share, the net profit for the period attributable to equity shareholders and the weighted average number of shares outstanding during the period is adjusted for the effects of all dilutive potential equity shares.
w) Cash Flow Statement:
Cash flows are reported using the indirect method, whereby profit for the period is adjusted for the effects of transactions of a non-cash nature, any deferrals or accruals of past or future operating cash receipts or payments and item of income or
expenses associated with investing or financing cash flows. The cash flows from operating, investing and financing activities of the Company are segregated.
x) Borrowing Costs
Borrowing costs directly attributable to the acquisition, construction or production of an asset that necessarily takes a substantial period of time to get ready for its intended use or sale are capitalised as part of the cost of the asset. All other borrowing costs are expensed in the period in which they occur. Borrowing costs consist of interest and other costs that an entity incurs in connection with the borrowing of funds. Borrowing cost also includes exchange differences to the extent regarded as an adjustment to the borrowing costs.
Discounts or premiums and expenses on the issue of debt securities are amortised over the term of the related securities and included within borrowing costs. Premiums payable on early redemptions of debt securities, in lieu of future finance costs, are written off as borrowing costs when paid.
y) Non -Current Assets Held for Sale
The Company classifies assets and disposal groups as held for sale if their carrying amounts will be recovered principally through a sale rather than through continuing use and a sale is considered highly probable.
The sale is considered highly probable when the management has a committed plan for selling those assets and the sale is expected to be completed sale within one year from the date of classification as held for sale. The actions required to complete the plan of sale should indicate that it is unlikely that significant changes to the plan will be made or that the plan will be withdrawn.
Assets held for sale and disposal groups are measured at the lower of their carrying amount and the fair value less cost of disposal.
Immediately before the initial classification of the asset (or disposal group) as held for sale, the carrying amounts of the asset (or all the assets and liabilities in the group) are measured in accordance with applicable Ind AS.
Property, plant and equipment and intangible assets once classified as held for sale are not depreciated or amortized.
z) Fair value measurements
The Company measures financial instruments such as derivatives and certain investments, at fair value at each balance sheet date.
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. The fair value measurement is based on the presumption that the transaction to sell the asset or transfer the liability takes place either:
⢠In the principal market for the asset or liability.
Or
⢠In the absence of a principal market, in the most advantageous market for the asset or liability.
The principal or the most advantageous market must be accessible by the Company.
All assets and liabilities for which fair value is measured or disclosed in the financial statements are categorised within the fair value hierarchy, described as follows, based on the lowest level input that is significant to the fair value measurement as a whole;
Level 1- Quoted (unadjusted) market prices in active markets for identical assets or liabilities.
Level 2- Valuation techniques for which the lowest level input that is significant to the fair value measurement is directly or indirectly observable.
Level 3- Valuation techniques for which the lowest level input that is significant to the fair value measurement is unobservable.
For the purpose of fair value disclosures, the Company has determined classes of assets and liabilities on the basis of the nature, characteristics and risks of the asset or liability and the level of the fair value hierarchy as explained above.
Terms and rights attached to preference shares
In the F.Y 2020-21, the company has changed the terms attached to existing 61,25,000 Redeemable Preference Shares bearing 8% cumulative dividend (CRNPS) after obtaining approval from preference shareholders as well as that from equity shareholders through e-voting ended on 26.03.2021, so as to alter those CRNPS into equal number of Optionally Convertible Preference Shares (OCRPS), which are convertible into fixed number of equity shares at the option of the company and bears 8% non-cumulative dividend. Those preference shares were issued in three series from 28.03.2013 to 17.09.2014 and convertible or redeemable after 12 years from their respective date of issue.
Out of total above, 50,00,000 OCRPS are convertible into 3 equity shares each at the option of the company or redeemable at a premium of H500 per share; and 11,25,000 OCRPS are convertible into 3.5 equity shares each at the option of the company or redeemable at a premium of H600 per share on the expiry of 12 years from the date of issue with an option to convert or redeem it earlier to be decided mutually between the Company and the OCRPS holders at a meeting of OCRPS holders called for this purpose.
2.46 DISCLOSURES ON FINANCIAL INSTRUMENTS
This section gives an overview of the significance of financial instruments for the Company and provides additional information on balance sheet items that contain financial instruments.
The details of material accounting policies, including the criteria for recognition, the basis of measurement and the basis on which income and expenses are recognised in respect of each class of financial asset, financial liability and equity instrument are disclosed in Note 2 (i) to the financial statements.
(a) Financial assets and liabilities
The following tables presents the carrying value and fair value of each category of financial assets and liabilities as at 31st March, 2024 and 31st March, 2023.
2.48 FINANCIAL RISK MANAGEMENT
The company''s business activities are exposed to a variety of financial risks, namely liquidity risk, market risks and credit risk. The Company''s senior management has the overall responsibility for establishing and governing the Company''s risk management framework. The Company has established a Risk Management system, which is responsible for developing and monitoring the Company''s risk management policies. The Company''s risk management policies are established to identify and analyse the risks faced by the Company, to set and monitor appropriate risk limits and controls, periodically review the changes in market conditions and reflect the changes in the policy accordingly. The key risks and mitigating actions are also placed before the Audit Committee of the Company.
A. MANAGEMENT OF LIQUIDITY RISK
Liquidity risk is the risk that the Company will face in meeting its obligations associated with its financial liabilities. The Company''s approach in managing liquidity is to ensure that it will have sufficient funds to meet its liabilities when due without incurring unacceptable losses. In doing this, management considers both normal and stressed conditions.
The Company maintained a cautious liquidity strategy, with a positive cash balance throughout the year ended 31st March, 2024 and 31st March, 2023. Cash flow from operating activities provides the funds to service the financial liabilities on a day-to-day basis.
The Company regularly monitors the rolling forecasts to ensure it has sufficient cash on on-going basis to meet operational needs. Any short term surplus cash generated, over and above the amount required for working capital management and other operational requirements, is retained as cash and cash equivalents (to the extent required) and any excess is invested in interest bearing term deposits and other highly marketable debt investments with appropriate maturities to optimise the cash returns on investments while ensuring sufficient liquidity to meet its liabilities.
The following table shows the maturity analysis of the Company''s financial liabilities and financial asset based on contractually agreed undiscounted cash flows along with its carrying value as at the Balance Sheet date.
B. MANAGEMENT OF MARKET RISK
The Company''s size and operations result in it being exposed to the following market risks that arise from its use of financial instruments:
⢠currency risk;
⢠price risk; and
⢠interest rate risk
The above risks may affect the Company''s income and expenses, or the value of its financial instruments. The Company has a risk management policy which not only covers the foreign exchange risks but also other risks associated with the financial assets and liabilities such as interest rate risks and credit risks. The risk management policy is approved by the board of directors.
(i) Market risk
Market risk is the risk of any loss in future earnings, in realizable fair values or in future cash flows that may result from a change in the price of a financial instrument. The value of a financial instrument may change as a result of changes in the interest rates, foreign currency exchange rates, equity price fluctuations, liquidity and other market changes. Future specific market movements cannot be normally predicted with reasonable accuracy.
a) Foreign currency exchange rate risk:
The fluctuation in foreign currency exchange rates may have potential impact on the statement of profit and loss and equity, where any transaction references more than one currency or where assets/liabilities are denominated in a currency other than the functional currency.
Considering the countries and economic environment in which the Company operates, its operations are subject to risks arising from fluctuations in exchange rates. The risks primarily relate to fluctuations in U.S. dollar, Euro and GBP against the functional currencies of the Company.
The Company, as per its risk management policy, uses forward cover and other derivative instruments primarily to hedge foreign exchange exposure. Any weakening of the functional currency may impact the Company''s imports, exports and cost of borrowings and consequently may impact profitability of the company.
The Company evaluates the impact of foreign exchange rate fluctuations by assessing its exposure to exchange rate risks. It hedges a part of these risks by using derivative financial instruments in accordance with its risk management policies.
b) Interest rate risk
Interest rate risk is measured by using the cash flow sensitivity for changes in variable interest rates. Any movement in the reference rates could have an impact on the Company''s cash flows as well as costs.
The Company is subject to variable interest rates on some of its interest bearing liabilities. The Company''s interest rate exposure is mainly related to debt obligations. The Company also uses a mix of interest rate sensitive financial instruments to manage the liquidity and fund requirements for its day to day operations like short-term loans.
c) Equity Price risk
Equity Price Risk is related to the change in market reference price of the investments in equity securities. The company is not an active investor in equity markets; it continues to hold certain investments in equity for long term value accretion which are accordingly measured at fair value through Other Comprehensive Income.
The fair value of Company''s investment in quoted equity securities as at March 31, 2024 and March 31, 2023 was H 40.03 crores, and H 33.45 crores, respectively. A 10% change in equity price as at March 31, 2024 and March 31, 2023 would result in an impact of H 4.00 crores and H 3.35 crores, respectively. (Note: The impact is indicated on equity before consequential tax impact, if any).
(ii) Credit risk
Credit risk is the risk of financial loss to the Company if a customer or counter-party fails to meet its contractual obligations. The Company is exposed to credit risk mainly from trade receivables and other financial assets. The Company only deals with parties which has good credit ratings / worthiness based on company''s internal assessment.
Trade receivables
Concentration of credit risk with respect to trade receivables are limited, due to the Company''s customer base being large and diverse. All trade receivables are reviewed and assessed for default on a quarterly basis.
Our historical experience of collecting receivables is that credit risk is low. Hence, trade receivables are considered to be a single class of financial assets.
Other financial assets
The Company maintains exposure in cash and cash equivalents, term deposits with banks, investments in treasury bills, government securities, money market liquid mutual funds and derivative instrument with financial institutions. The Company has set counter-parties limits based on multiple factors including financial position, credit rating, etc.
The Company''s maximum exposure to credit risk as at 31st March, 2024 and 31st March, 2023 is the carrying value of each class of financial assets.
C. COMPETITION AND PRICE RISK MANAGEMENT
The Company faces competition from local and foreign competitors. Nevertheless, it believes that it has competitive advantage in terms of high quality products and by continuously upgrading its expertise and range of products to meet the needs of its customers.
D. COMMODITY PRICE RISK MANAGEMENT
Commodity price risk for the Company is mainly related to fluctuations in raw material prices linked to various external factors, which can affect the production cost of the Company. Since the raw material costs is one of the primary costs drivers, any fluctuation in raw material prices (pulp and waste paper etc.) can lead to variability in operating margin.
The company has developed sustainable relation with leading domestic and international suppliers of raw material, which enable procurement at most competitive rates. Dedicated expert team and market intelligence supports the company procurement functions.
E CAPITAL RISK MANAGEMENT
The Company''s policy is to maintain an adequate capital base with the objective to create value for the shareholders along with maintaining creditor and market confidence. Capital includes issued capital, share premium and all other equity reserves attributable to equity holders. In order to strengthen the capital base, the company may use appropriate means to enhance or reduce capital, as the case may be.
2.50 FAIR VALUE HIERACHY
Level 1 - Quoted Prices (Unadjusted) in active markets for identical assets or liabilities.
Level 2 - Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices).
Level 3 - Inputs for the assets or liabilities that are not based on observable market data (unobservable inputs).
2.58 The Company depreciates its Property, Plant & Equipment over the useful life in the manner prescribed in Schedule II to the Act. Depreciation is provided on pro-rata basis based on the method specified in the material accounting policies using the rates arrived on the basis of useful life of assets specified in Part C of Schedule II to the Act and during this financial year, the company has re-estimated useful life of its Paper Manufacturing machines based on past experiences, industry standards and opinion of external experts, thereby increasing the remaining useful life. As a result depreciation for the year ended 31st March 2024 has experienced a reduction with corresponding increase in ''profit before tax''. Depreciation and amortisation expenses (excluding impairment charges) in the current financial year is lesser by H15.32 crore than that of corresponding previous financial year and both are not comparable
2.59 The Company had foreign exchange earnings from export of H114.97.crores during the F.Y.2023-24 (last year - H 269.23 crores).
2.60 Other Information in terms of the amendment in Schedule lll of the Companies Act vide notification G.S.R. 207(E) dated 24th March 2021.
a) The Company does not have any transactions with companies which are struck off under Section 288 of the Companies Act 2013 or Section 560 of Companies Act, 1956 during the financial year.
b) The Company does not have any benami property, and no proceeding has been initiated or pending against the Company for holding any benami property.
c) The Company has not traded or invested in crypto currency or virtual currency during the financial year.
d) The Company has not advanced or loaned or invested funds to any other person(s) or entity(ies), including foreign entities (Intermediaries) with the:
i) 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
ii) Provide any Guarantee, Security, or the like to or on behalf of the Ultimate Beneficiaries.
e) The Company has not received any fund from any Person(s) or Entity(ies), including Foreign Entities (Funding Party) with the understanding (whether):
i) 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
ii) Provide any Guarantee, Security, or the like on behalf of the ultimate beneficiaries.
f) The Company have sanctioned borrowings/facilities from banks on the basis of security of current assets. The quarterly returns or statements of current assets filed by the Company with banks and financial institutions are in agreement with the books of accounts and there are no material discrepancies between them.
g) The Company has no such transaction which is not recorded in the Books of Accounts that has been surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961 (such as, search or survey or any other relevant provisions of the Income Tax Act, 1961).
h) The Company has not been declared willful defaulter by any Banks or any other Financial Institution at any time during the financial year.
i) The Company does not have any charges or satisfaction which is yet to be registered with ROC beyond the statutory period.
2.61 Vide Order of the Hon''ble National Company Law Tribunal ("NCLTâ), Kolkata Bench, order No. C.P. (CAA) No. 89/KB/2021 connected with C.A. (CAA) No. 1237/KB/2020 dated 15/11/2021 ("Orderâ), Pan Emami Cosmed Limited, Emami Capital Markets Ltd., TMT Viniyogan Ltd., Newway Constructions Ltd., Karan Business Pvt. Ltd., Zen Business Pvt. Ltd., Sundew Finance Private Limited, Medal Chemical & Research Works Ltd., Sneha Abasan Pvt. Ltd., Sneha Niketan Pvt. Ltd., Ramshila Enterprise Pvt. Ltd., and EFL Foods Limited ("Transferor Companiesâ) have been amalgamated into and with Midkot Investments Private Limited ("Companyâ), with the appointed date of closing hours of business on 31st March, 2020, and effective date is 9th December, 2021.
As on 31st March, 2022, the Company was holding 3,07,300 nos. of equity shares of face value of H10/- each of Pan Emami Cosmed Limited. Pursuant to the said scheme of amalgamation, the Company while exercising its option has opted for 3,07,300 nos. of Class B 8% Non Cumulative Optionally Convertible Redeemable Preference Shares (NCOCRPS) of face value of H 10/-each. During this financial year the fully paid up preference shares of face value of H 10/- each of Midkot Investments Private Limited has been allotted to the company and later the Midkot Investments Private Limited has changed its name to PAN Emami Cosmed Limited.
2.62 The Board of Directors has recommended a dividend of H1.60/- per equity share (80%) having face value of H 2 each and H8/-per preference shares (8%) having face value of H100/- each for the financial year 2023-24.
2.63 Corresponding figures of the previous period have been regrouped/ rearranged wherever necessary.
The accompanying notes are an integral part of these financial statements
In terms of our attached report of even date
For S K Agrawal and Co Chartered Accountants LLP For and on behalf of the Board
Chartered Accountants
Firm Registration Number : 306033E/ E300272
Sandeep Agrawal Aditya V. Agarwal Manish Goenka Vivek Chawla
Partner Executive Chairman Vice Chairman Whole-time Director & CEO
Membership No. - 058553 DIN : 00149717 DIN : 00363093 DIN : 02696336
Mukesh Kumar Agarwal D. Banthiya
Place: Kolkata Asst. Vice President (Finance) Company Secretary
Date: 28th May, 2024 & Interim CFO M.No. : F - 7790
Mar 31, 2017
1 SHARE CAPITAL
a) Reconciliation of the shares outstanding at the beginning and at the end of the reporting year
b) Terms / rights attached to shares
(i) Equity shares
The Company has only one class of equity shares having a par value of Rs.2/- per share. Each holder of equity shares is entitled to one vote per share. 65,352 numbers of shares, which have been transferred to Investor Education and Protection Fund Suspense Account pursuant to section 124(6) of Companies Act, 2013 does not carry any voting right. The Company declares and pay dividend in Indian rupees. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting.
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. The distribution will be in proportion to the number of equity shares held by the shareholders.
(ii) Preference shares
The Cumulative Redeemable Non-Convertible Preference Shares (CRNPS) of Rs.100/- each fully paid up carry cumulative dividend @8% p.a.
The Company declares and pay dividends in Indian rupees on pro-rata basis from the date of allotment. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting. Holders of CRNPS have voting rights on matters pertaining to CRNPS.
In the event of liquidation of the Company before redemption of CRNPS, the holders of CRNPS will have priority over equity shares in the repayment of capital. 50,00,000 CRNPS are redeemable at a premium of Rs.500 per share and 11,25,000 CRNPS are redeemable at a premium of Rs.600 per share on the expiry of 12 years from the date of issue, with an option to redeem it earlier at a premium to be decided mutually between the Company and the CRNPS holders at a meeting of CRNPS holders called for this purpose.
The Company, after the balance sheet date has proposed final dividend of Re.1.20 (Re. 0.60) per equity share and dividend of Rs.8.00 (Rs.8.00) per cumulative redeemable non-convertible preference share. In 2016-17, no liability is recognized on this account pursuant to para 8.5 of Accounting Standard - 4 âContingencies and events occurring after Balance Sheetâ as notified by Ministry of Corporate Affairs through Companies (Accounting Standards) Amendment Rules, 2016 dated 30.03.2016._
2 CONTINGENT LIABILITIES AND COMMITMENTS
a) Contingent liabilities not provided for in respect of:
i) Outstanding guarantees and letters of credit furnished by the bankers on behalf of the Company amounting to Rs.5,651.14 lacs (Rs.4,178.45 lacs) are secured by hypothecation of current assets, as specified in Note 2.7 and those amounting to Nil (Rs.1,062.09 lacs) are secured by deposit of title deeds of immovable properties and hypothecation of movable fixed assets, as specified in Note 2.3.
ii) Sales tax /VAT/entry tax / central excise duties/service tax/ESI contribution and other taxes under appeal / review - Rs.453.95 lacs net of advances of Rs.158.48 lacs (Rs.466.99 lacs net of advances of Rs.169.76lacs).
iii) Bonds / undertakings given under EPCG scheme to custom authority - Rs.5,601.02 lacs (Rs.5,565.02 lacs).
iv) Withdrawal of incentive tariff of electricity by NESCO Rs.41.53 lacs net of deposit of Rs.61.93 lacs (Rs.46.26 lacs net of deposit of Rs.61.93 lacs).
b) Capital and other commitments:
Estimated amounts of capital contracts remaining to be executed and not provided for (net of advances) Rs.2,886.78 lacs (Rs.1,583.93 lacs).
3 ENTRY TAX
As per the interim order of Honourable Supreme Court of India dated 03.02.2010 and 09.04.2013 the Company is directed to deposit 1/3rd and 50% respectively of the entry tax on goods imported from outside and not manufactured within the state of Orissa. In pursuance to the said orders the Company has deposited a sum of Rs.649.52 lacs (Rs.506.93 lacs) as against total amount of Rs.1,347.29 lacs (Rs.1,026.98 lacs) for the financial year from 2008-09 to 2016-17.
4 DEFERRAL/CAPITALIZATION OF EXCHANGE DIFFERENCES
The Company has exercised the option permitted by Accounting Standard Amendment Rule, 2009 under the transitional provisions contained in Para 46 of Accounting Standard (AS) 11 (vide GOI Notification No.GSR 225(E) dated 31st March 2009 as amended by Notifications No. GSR 378(E) dated 11th May, 2011 and GSR 913 (E) dated 29th December, 2011). Accordingly, a sum of Rs.1,632.25 lacs being the exchange gain for the year (Rs.1,462.45 lacs being the exchange loss for the previous year) arising on reporting of Long-Term Foreign Currency Monetary Items has been deducted from (added to) the cost of depreciable capital asset as at 31st March 2017. The net exchange loss of Rs.12,013.61 lacs (Rs.13,645.86 lacs) in the carrying amount of the depreciable capital asset(s) as on the Balance Sheet date would be depreciated over the remaining useful life of the assets.
5 The Company has incurred during the year a sum of Rs.191.91 lacs (Rs.177.29 lacs) towards Corporate Social Responsibility within the purview of CSR expenditure as specified in Schedule-VII to the Companies Act,2013.
6 DISCLOSURES REQUIRED UNDER THE MICRO, SMALL AND MEDIUM ENTERPRISES DEVELOPMENT ACT.
Delayed payment made during the year on account of principal - Nil (Previous Year - NIL) and delayed payment due as at the end of the year on account of principal - Nil (Previous Year NIL); hence, no interest is paid / payable under MSMED Act, 2006.
Proposed preference dividend and dividend distribution tax thereon, has not been recognized as liability as on 31.03.2017 (refer to Note 2.46), but the same has been considered in determination of earning per share pursuant to paragraph 13 of Accounting Standard 20 âEarning per Shareâ.
7 RELATED PARTY DISCLOSURES
a. Key management personnel
Shri A.V. Agarwal, Executive Chairman
Shri Manish Goenka, Whole time director
Shri P.S. Patwari, Executive Director
Shri M.B.S. Nair, Director Operations
Shri S.K. Khetan, President (Finance) & CFO
Shri G.Saraf, VP (Finance) & Secretary Other Directors
Shri J.N. Godbole, Independent Director
Shri S.Balasubramanian, Independent Director
Shri H.M. Marda, Independent Director
Shri J.K. Khetawat, Independent Director
Shri U.G. Bhat, Independent Director
Smt Richa Agarwal, Non-Executive Director
b. Relatives of key management personnel
Shri R. S. Agarwal
Smt. Usha Agarwal
Shri Harsh Vardhan Agarwal
Smt. Preeti Sureka
Shri Shyam Patwari
c. Enterprises where key management personnel and their relatives are able to exercise significant influence
Emami Limited
Emami Cement Limited
Emami Capital Market Limited
AMRI Hospitals Limited
Oriental Sales Agencies (India) Private Limited
Suntrack Commerce (P) Ltd.
Sneha Enclave Private Limited
Sneha Gardens Private Limited Emami
Estates Private Limited
Bhanu Vyapaar Private Limited
Auto Hi-Tech Private Limited
Diwakar Viniyog Private Limited
Pan Emami Cosmed Ltd
TMT Viniyogan Limited
8 GRATUITY AND OTHER POST-EMPLOYMENT BENEFIT
The Companyâs obligation towards the gratuity fund and leave encashment fund are defined Benefit Plans. The details of actuarial valuation are given below
9 EXPOSURE TOWARDS FOREIGN CURRENCY BORROWINGS NOT HEDGED BY A DERIVATIVE INSTRUMENT OR OTHERWISE:
The newsprint prices generally move in tandem with landed cost of imported newsprint and also carry a risk of rupee appreciation. To mitigate this risk of rupee appreciation, the Company has availed foreign currency borrowings which are unhedged. The Company is having natural hedging for itsâ foreign currency borrowings from direct export and from sale of newsprint, being an import substitute product. Unhedged foreign currency exposure by a derivative instrument or otherwise are given below:-
10 The Companyâs business activity falls within a single primary business segment which is âManufacture of Paper and Paper Boardâ and the Company primarily operates in India and thus the disclosure requirements of AS- 17 âSegment Reportingâ, notified in the Companies (Accounting Standard) Rules, 2006 are not applicable.
11 The Company has entered into operating lease agreements for office space, godowns, and guest house. The total charge to statement of profit and loss for the year on account of operating lease is Rs.65.34 lacs. (Rs.35.42 lacs).
Lease rental are charged on the basis of agreed terms. No significant restrictions have been imposed by the lessor on the leases. The leases can be renewed after completion of the lease term by mutually discussing the renewal terms with the lessor.
12 DISCLOSURE ON SPECIFIED BANK NOTES (SBNs)
During the year, the Company had specified bank notes or other denomination notes as defined in the MCA notification G.S.R. 308(E) dated March 31, 2017 on the details of Specified Bank Notes (SBN) held and transacted during the period from November 8, 2016 to December, 30 2016, the denomination wise SBNs and other notes as per the notification is given below:
13 The Board of Directors has recommended final dividend of Rs.1.20 per equity share of Rs.2/- each and a final dividend of Rs.8.00 per preference share of Rs.100/- each subject to approval of shareholders in ensuing Annual General Meeting. Proposed dividend as above amounting to Rs.1,215.98 lac for the year 2016-17 and dividend distribution tax thereon, has not been recognized as liability as on 31.03.2017 in terms of revised Accounting Standard - 4 âContingencies and events occurring after Balance Sheetâ as notified by Ministry of Corporate Affairs through Companies (Accounting Standards) Amendment Rules, 2016 dated 30.03.2016.
14 Previous yearâs figures have been reclassified/ regrouped / rearranged wherever necessary.
Mar 31, 2016
Note 1.| CONTINGENT LIABILITIES AND COMMITMENTS
a) Contingent liabilities not provided for in respect of :
i) Outstanding guarantees and letters of credit furnished by the bankers on behalf of the Company amounting to Rs. 4,178.45 lacs (Rs. 1,735.86 lacs) are secured by hypothecation of current assets, as specified in Note 2.7 and those amounting to Rs. 1,062.09 lacs (Rs. 436.03 lacs) are secured by deposit of title deeds of immovable properties and hypothecation of movable fixed assets, as specified in Note 2.3.
ii) Sales tax / VAT / Income tax / entry tax / central excise duties / service tax / ESI contribution and other taxes under appeal / review - Rs. 469.19 lacs net of advances of Rs. 171.98 lacs (Rs. 238.31 lacs net of advances of Rs. 137.47 lacs).
iii) Bonds / undertakings given under EPCG scheme to custom authority - Rs. 5,565.02 lacs (Rs. 5,963.21 lacs).
iv) Withdrawal of incentive tariff of electricity by NESCO Rs. 46.26 lacs net of deposit of Rs. 61.93 lacs (Rs. 46.26 lacs net of deposit of Rs. 61.93 lacs).
b) Capital and other commitments :
Estimated amounts of capital contracts remaining to be executed and not provided for (net of advances) Rs. 1,583.93 lacs (Rs. 2,890.95 lacs).
Note 2.| ENTRY TAX
As per the interim order of Honourable Supreme Court of India dated 03.02.2010 and 09.04.2013 the company is directed to deposit 1/3rd and 50% respectively of the entry tax on goods imported from outside and not manufactured within the state of Odisha. In pursuance to the said orders the company has deposited a sum of Rs. 506.93 lacs (Rs. 377.35 lacs) as against total amount of Rs. 1,026.98 lacs (Rs. 848.90 lacs) for the financial year from 2008-09 to 2015-16.
Note 3.| DEFERRAL/CAPITALIZATION OF EXCHANGE DIFFERENCES
The Company has exercised the option permitted by Accounting Standard Amendment Rule, 2009 under the transitional provisions contained in Para 46 of Accounting Standard (AS) 11 (vide GOI Notification No. GSR 225(E) dated 31st March 2009 as amended by Notifications No. GSR 378(E) dated 11th May, 2011 and GSR 913 (E) dated 29th December, 2011). Accordingly, a sum of Rs. 1,462.45 lacs (Rs. 1,208.65 lacs) being the exchange loss for the year arising on reporting of Long-Term Foreign Currency Monetary Items has been added to the cost of depreciable capital asset as at 31st March 2016. The net exchange loss of Rs. 13,645.86 lacs (Rs. 12,183.41 lacs) in the carrying amount of the depreciable capital asset(s) as on the Balance Sheet date would be depreciated over the remaining useful life of the assets.
The company has incurred during the year a sum of Rs. 177.29 lacs (Rs. 155.95 lacs) towards Corporate Social Responsibility within the purview of CSR expenditure as specified in Schedule-VII to the Companies Act,2013.
Note 4.| DISCLOSURES REQUIRED UNDER THE MICRO SMALL AND MEDIUM ENTERPRISES DEVELOPMENT ACT
Delayed payment made during the year on account of principal - Nil (Previous Year Nil) and delayed payment due as at the end of the year on account of principal - Nil (Previous Year Nil); hence, no interest is paid / payable under MSMED Act, 2006.
Note 5.| REVALUATION
Land, buildings and plant & machinery of the Gulmohar unit and paper machine-1 of Balasore unit were revalued as on 01.04.1998 and 01.04.1999 respectively. Since such revaluation does not exhibit true valuation of the assets involved, the same has been de-recognized in the year 2014-15. As such net book value of Rs. 629.27 lacs arisen on such revaluation has been written off and adjusted with the corresponding assets during the year 2014-15.
Note 6. EXPOSURE TOWARDS FOREIGN CURRENCY BORROWINGS NOT HEDGED BY A DERIVATIVE INSTRUMENT OR _OTHERWISE_
The newsprint prices generally move in tandem with landed cost of imported newsprint and also carry a risk of rupee appreciation. To mitigate this risk of rupee appreciation, the company has availed foreign currency borrowings which are unhedged. The company is having natural hedging for its'' foreign currency borrowings from direct export and from sale of newsprint, being an import substitute product. Unhedged foreign currency exposure by a derivative instrument or otherwise are given below :-
The company''s business activity falls within a single primary business segment which is "Manufacture of Paper & Paper Board" and the Company primarily operates in India and thus the disclosure requirements of AS- 17 "segment Reporting'', notified in the Companies (Accounting Standard) Rules, 2006 are not applicable.
Amount due and outstanding to be credited to Investor education and protection fund - Nil (PY Nil).
The Company has entered into operating lease agreements for office space, godowns, and guest house. The total charge to statement of profit and loss for the year on account of operating lease is Rs. 35.42 lacs.(Rs.32.83 lacs).
Lease rental are charged on the basis of agreed terms. No significant restrictions have been imposed by the lessor on the leases. The leases can be renewed after completion of the lease term by mutually discussing the renewal terms with the lessor.
Previous year''s figures have been reclassified/ regrouped / rearranged wherever necessary.
Mar 31, 2014
1. Terms / rights attached to shares
i) Equity shares : The Company has only one class of equity shares
having a par value of Rs 2/- per share. Each holder of equity shares is
entitled to one vote per share. The Company declares and pay dividend
in Indian rupees. The dividend proposed by the Board of Directors is
subject to the approval of the shareholders in the ensuing Annual
General Meeting.
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. The distribution will
be in proportion to the number of equity shares held by the
shareholders.
ii) Preference shares : During the year ended 31st March, 2014 the
Company issued 22,50,000 (20,00,000) cumulative redeemable
non-convertible preference shares (CRNPS) of Rs 100 each fully paid up
at a premium of Rs 300 per share. CRNPSs carry cumulative dividend @8%
p.a.
The Company declares and pay dividends in indian rupees on pro-rata
basis from the date of allotment. The dividend proposed by the board of
directors is subject to the approval of the shareholders in the ensuing
Annual General Meeting. Holders of CRNPS have voting rights on matters
pertaining to CRNPS.
In the event of liquidation of the company before redemption of CRNPS,
the holders of CRNPS will have priority over equity shares in the
repayment of capital. The CRNPS is redeemable on the expiry of 12 years
from the date of issue at a premium
2. Nature of Security :
(i) Term loans of Rs 43,719.09 Lacs (Rs 34,214.32 Lacs) are secured by
deposit of title deeds in respect of present and future immovable
properties and hypothecation of present and future movable fixed assets
on a pari-passu basis and second charge on current assets on pari-passu
basis.
(ii) Term loans of Rs 214.34 Lacs (Rs 1,674.77 Lacs) are supported by
personal guarantee of some of the promoters and second / subservient
charge on all movable assets of the company ranking pari-passu.
Terms of repayment of term loans :
(i) ICICI ECB USD 0.96 million equivalent to Rs 574.04 Lacs (USD 4.79
million equivalent to Rs 2,601.40 Lacs) carries interest @ 6 M Libor
1.70% p.a. is repayable in the quarter ended 30th June, 2014.
(ii) ICICI ECB USD 2.06 million equivalent to Rs 1,235.44 Lacs (USD
4.81 million equivalent to Rs 2,612.71 Lacs) carries interest @ 6 M
Libor 1.00% p.a. is repayable in 3 quarterly installments upto
December, 2014.
(iii) Allahabad Bank ECB USD 8.70 million equivalent to Rs 5,211.30
Lacs (Nil) carries interest @ 6 M Libor 4.50% p.a. is repayable in 20
quarterly installments commencing from June, 2016.
(iv) Exim Bank ECB USD 0.72 million equivalent to Rs 432.15 Lacs (Nil)
carries interest @ 6 M Libor 4.75% p.a. is repayable in 28 quarterly
installments commencing from June, 2016.
(v) Axis Bank ECB USD 4.50 million equivalent to Rs 2,695.50 Lacs (Nil)
carries interest @ 6 M Libor 4.65% p.a. is repayable in 20 quarterly
installments commencing from October, 2016.
(vi) IDBI Bank ECB USD 4.00 million equivalent to Rs 2,396 Lacs (Nil)
carries interest @ 6 M Libor 5.00% p.a. is repayable in 24 equal
quarterly installments commencing from April, 2017.
(vii) SBI FCNR (B) USD 11.43 million equivalent to Rs 6,845.37 Lacs
(USD 16.41 million equivalent to Rs 8,911.37 Lacs) carries interest @ 6
M Libor applicable Spread p.a. is repayable in 5 quarterly
installments upto June, 2015.
(viii) Indusind Bank FCNR (B) USD 0.36 million equivalent to Rs 214.34
Lacs (USD 1.79 million equivalent to Rs 971.33 Lacs) carries interest @
Libor 5.00 % p.a. is repayable in the quarter ended 30th June, 2014.
(ix) SBI FCNR (B) USD 12.97 million equivalent to Rs 7,771.29 Lacs (Rs
7,000.00 Lacs) carries interest @ 6 M Libor applicable spread p.a. is
repayable in 20 quarterly installments starting from June, 2015.
(x) SBH Rupee Term loan amounting to Rs 4,999.71 Lacs (Rs 4,999.71
Lacs) carries interest @ SBH Base Rate 3% p.a. is repayable in 12
quarterly installments commencing from June, 2014. The company has
entered into principal only swap for this loan in USD, value of which
as on 31.03.2014 is Rs 5,590.82 Lacs.
(xi) ICICI Rupee Term loan amounting to Rs 6,000 Lacs (Rs 6,000 Lacs)
carries interest @ ICICI Bank base rate applicable spread p.a. is
repayable in 20 quarterly installments commencing from December, 2014.
The company has entered into principal only swap for this loan in USD,
value of which as on 31.03.2014 is Rs 6,753.32 Lacs.
(xii) ICICI Rupee Term loan amounting to Rs 4,000 Lacs (Nil) carries
interest @ ICICI Bank base rate applicable spread p.a. is repayable
in 20 quarterly installments commencing from September, 2015. The
Company has entered into principal only swap for this loan in USD,
value of which as on 31.03.2014 is Rs 4,213.86 Lacs.
* The amount repayable within next 12 month for the above loans has
been classified as "Current maturities" in Note No. 2.9.
3.
CONTINGENT LIABILITIES AND COMMITMENTS
a) Contingent liabilities not provided for in respect of :
i) Outstanding guarantees and letters of credit furnished by the
bankers on behalf of the Company amounting to Rs 937.78 Lacs (Rs 664.44
Lacs) is secured by hypothecation of current assets, as specified in
Note 2.7 and that amounting to Rs 13,807.42 Lacs (Nil) is secured by
deposit of title deeds of immovable properties and hypothecation of
movable fixed assets, as specified in Note 2.3.
ii) Sales tax / VAT / entry tax / central excise duties / service tax /
ESI contribution and other taxes under appeal / review (net of
advances) - Rs 1,658.43 Lacs (Rs 1,300.55 Lacs).
iii) Bonds / undertakings given under EPCG scheme to custom authority -
Rs 1,228.42 Lacs (Rs 851.93 Lacs).
iv) Withdrawal of incentive tariff of electricity by NESCO (net of
advance) - Rs 46.26 Lacs (Rs 46.26 Lacs).
4. Capital and other commitments :
Estimated amounts of capital contracts remaining to be executed and not
provided for (net of advances) Rs 25,537.71 Lacs (Rs 11,238.78 Lacs).
The Company has entered into operating lease agreements for office
space, godowns, and guest house. The total charge to statement of
profit and loss for the year on account of operating lease is Rs 31.31
Lacs (Rs 28.41 Lacs). Lease rental are charged on the basis of agreed
terms. No significant restrictions have been imposed by the lessor on
the leases. The leases can be renewed after completion of the lease
term by mutually discussing the renewal terms with the lessor.
Note 5.
Previous year''s figures have been reclassified/re-grouped/re-arranged
wherever necessary.
Mar 31, 2013
NOTE 1.1 CONTINGENT LIABILITIES AND COMMITMENTS
a) contingent liabilities not provided for in respect of:
i) Outstanding guarantees and letters of credit furnished by the
bankers on behalf of the Company secured by hypothecation of current
assets, as specified in Note 2.7 - Rs. 664.44 lacs (Rs. 563.74 lacs).
ii) Sales tax / VAT / entry tax / central excise duties / service tax /
ESI contribution and other taxes under appeal / review (net of
advances) - Rs. 1,144.45 lacs (Rs. 675.77 lacs).
iii) Bonds / undertakings given under EPCG scheme to custom authority -
Rs. 851.93 lacs (Rs. 841.66 lacs)
iv) Withdrawal of incentive tariff of electricity by NESCO (net of
advance) - Rs. 46.26 lacs (Rs. 46.26 lacs)
b) capital and other commitments:
Estimated amounts of capital contracts remaining to be executed and not
provided for (net of advances) Rs. 1 1,238.78 lacs (Rs. 555.89 lacs).
NOTE 1.2 DEFERRAL/CAPITALIZATION OF EXCHANGE DIFFERENCES
The Company has exercised the option permitted by Accounting Standard
Amendment Rule, 2009 under the transitional provisions contained in
Para 46 of Accounting Standard (AS) 11 (vide GOI Notification No.GSR
225(E) dated the 31st March 2009 as amended by Notification No. GSR
378(E) dated 11th May, 2011 and GSR 913 (E) dated 29th December, 2011).
A sum of Rs. 2,015.88 lacs (Rs. 3789.43 lacs) being the exchange loss for
the year arising on reporting of Long-Term Foreign Currency Monetary
Items has been added to the cost of depreciable capital asset as at the
31st March 2013. The net increase of Rs. 6,855.04 lacs (after adjusting
net loss of Rs. 4,839.16 lacs up to Financial Year 2011-12) in the
carrying amount of the depreciable capital asset(s) would be
depreciated over the balance of the life of the assets.
NOTE 1.3 ENTRY TAX
Against the order of Hon''ble Orissa High Court W P (C) No. 6515 of 2006
dated 18.02.2008 holding that State of Orissa has no jurisdiction to
impose entry tax on goods imported from outside and are not
manufactured within the state, the State of Orissa has filed a SLP
before the Hon''ble Supreme Court which has passed an interim order
dated 03.02.2010 directing the company to deposit 1/3rd of the amount
of entry tax on such purchases pending disposal of the SLP. In
pursuance of the aforesaid order, the company has deposited a sum of Rs.
78.05 lacs (Rs. 55.48 lacs) against the entry tax of Rs. 234.15 lacs (Rs.
166.44 lacs) for the financial years 2008-09 to 2012-13.
NOTE 1.4
Miscellaneous expenses include Rs. 70.37 lacs (Rs. 70.68 lacs) for
corporate social responsibility.
NOTE 1.5
There are no outstanding or delayed payments to the Micro, Small and
Medium Enterprises and hence disclosures, if any, relating to amounts
unpaid as at the year end together with interest paid/payable as
required under the Micro, Small and Medium Enterprises Developments
Act, 2006 are not required.
NOTE 1.6 RELATED PARTY DISCLOSURES
a. Key management personnel
Shri R.S. Goenka *
Shri R.S. Agarwal *
Shri P.S. Patwari
Shri Manish Goenka
Shri R.C.Mall**
Shri A. V. Agarwal
b. Relatives of key management personnel
Shri Shyam Patwari
c. Enterprises over which persons described in (a) above are able to
exercise significant influence
Emami Limited
Emami Biotech Limited (up to 10.07.2012)
Emami Cement Limited
Emami Foundation
Oriental Sales Agencies (India) Private Limited
Suntrack Commerce Private Limited
Sneha Enclave Private limited
Sneha Gardens Private limited
Emami Estates Private limited
Bhanu Vyapaar Private Limited
Auto Hi-Tech Private Limited
* Resigned from the Board w.e.f. 13th August,2012
** Resigned from the Board w.e.f. 23th April,2012
NOTE 1.7
The Company''s business activity falls within primary business segment
of "Manufacture of paper" and "Real estate business" as per AS-17
"Segment reporting", notified in the Companies (Accounting standard)
Rules, 2006. The operating income and segment results includes Rs 900
lacs from Real estate business. Other revenue and segment assets and
liabilities are exclusively related to manufacture of paper business.
NOTE 1.8
Amount due and outstanding to be credited to Investor education and
protection fund - Nil (PY Nil).
NOTE 1.9
Exchange differences on the principal amount of the foreign currency
borrowings to the extent that they are regarded as an adjustment to
interest cost as mandated by paragraph 4(e) of Accounting Standard - 16
have been disclosed under Notes "Finance cost." Such exchange
differences on principal amount of foreign borrowing are not interest
on the foreign borrowing.
NOTE 1.10
The Company has entered into operating lease agreements for office
space, godowns, and guest house. The total charge to statement of
profit and loss for the year on account of operating lease is Rs. 28.41
Lacs (Rs. 28.41 Lacs).
Lease rental are charged on the basis of agreed terms. No significant
restrictions have been imposed by the lessor on the leases. The leases
can be renewed after completion of the lease term by mutually
discussing the renewal terms with the lessor.
NOTE 1.11
Previous year''s figures have been reclassified/ regrouped / rearranged
wherever necessary.
Mar 31, 2012
1.1 General
The financial statements are prepared under the historical cost
convention on the accrual basis of ac- counting and in accordance with
Accounting principles generally accepted in India and comply with the
Accounting Standards notified by the Central Government of India and
relevant provisions of the Companies Act, 1956.
All the assets & liabilities have been classified as current or
non-current as per the Company's normal operating cycle and other
criteria set out in the Revised Schedule VI to the Companies Act 1956.
a) Terms / rights attached to equity shares
The company has only one class of equity shares having a par value of
Rs.2/- per share. Each holder of equity shares is entitled to one vote
per share. The company declares and pay dividends in Indian rupees. The
dividend proposed by the Board of Directors is subject to the approval
of the shareholders in the ensuing Annual General Meeting.
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. The distribution will
be in proportion to the number of equity shares held by the
shareholders.
Nature of Security :
(i) Term loans of Rs.20,524.15 Lac (Rs.20,825.26 Lac) are secured by
deposit of title deeds in respect of present and future immovable
properties and hypothecation of present and future movable fixed assets
on a pari pasu basis. Term loans from banks are also secured by second
charge on current assets on pari pasu basis.
(ii) Term Loans of Rs.1,603.95 Lac (Nil) are supported by personal
guarantee of some of directors and second / subservient charge on all
movable assets on a pari pasu basis.
Terms of Repayment of Term Loans :
(i) ECB $ 23 Million from ICICI Bank Ltd (Rs.4388.40 Lacs) is repayable
in 9 quarterly instalments
(ii) ECB $ 16.50 Million from ICICI Bank Ltd (Rs.3847.80 Lacs) is
repayable in 11 quarterly instalments
(iii) ECB $ 10 Million ( Rs.1908 Lacs) from State Bank of India is
repayable in 6 quarterly instalments
(iv) ECB $ 4.50 Million (Rs.2289.60 Lacs) from DBS Bank repayable in 2
annual instalments
(v) FCNR (B) $ 21 million from State Bank of India (Rs.10,046.28 Lacs)
is repayable in 13 quarterly instalments
(vi) FCNR (B) $ 7.878 Million from State Bank of India (Rs.1460.47
Lacs) is repayable in 5 quarterly instalments
(vii) Rupee Term Loan from SBH (Rs.5000 Lacs) Repayable in 12 quarterly
instalments with 2 years moratorium.
(viii) Loan from Indusind Bank (Rs.1638.57 Lacs) is repayable in 9
quarterly instalments.
(ix) Loan from Axis Bank (Rs.1889.28 Lacs) is repayable in 19 monthly
instalments.
The amount repayable within next 12 months for above loans has been
classified as "current maturities" in Note No.2.9.
Nature of Security :
Working Capital facilities from banks are secured by hypothecation of
present and future stock of materials, stock- in-process, finished
goods, stores and spares, book debts, outstanding money, claims
receivable and further secured by way of second charge on all immovable
and movable properties / fixed assets both present and future on a pari
passu basis.
2.1 Contingent liabilities and commitments
(a) Contingent liabilities not provided for in respect of:
(i) Outstanding guarantees and letters of credit furnished by the
bankers on behalf of the Company secured by hypothecation of current
assets, as specified in note 2.7 - Rs.563.74 lacs (Rs.2512.60 lacs).
(ii) Sales tax / VAT / Entry Tax / Central Excise duties / Service tax
/ ESI Contribution and other taxes under appeal / review (net of
advances) - Rs.675.77 lacs (Rs.46.87 lacs).
(iii) Bonds / Undertakings given under EPCG scheme to Custom Authority
- Rs.841.66 lacs (Rs.578.74 lacs)
(iv) Withdrawal of incentive tariff of electricity by NESCO (net of
advance) - Rs.46.26 lacs (Rs.46.26 lacs)
(b) Capital and other commitments
Estimated amounts of capital contracts remaining to be executed and not
provided for (net of advances) Rs.555.89 lacs (Rs.3122.80 lacs).
2.2 Deferral / capitalization of exchange differences
The Company has exercised the option permitted by Accounting Standard
Amendment Rule, 2009 under the transitional provisions contained in
Para 46 of Accounting Standard (AS) 11 (vide GOI Notification No.GSR
225(E) dated the 31st March 2009 as amended by Notification No. GSR
378(E) dated 11th May, 2011 and GSR 913 (E) dated 29th December, 2011).
A sum of Rs.4863.10 lacs being the exchange loss for the year arising
on reporting of Long-Term Foreign Currency Monetary Items has been
added to the cost of depreciable capital asset as at the 31st March
2012. The net increase of Rs.5912.82 lacs (after adjusting net loss of
Rs.1049.72 lacs up to Financial Year 2010-11) in the carrying amount of
the depreciable capital asset(s) would be depreciated over the balance
of the life of the assets.
2.3 Entry Tax : Against the order of Hon'ble Orissa High Court W P (C)
No. 6515 of 2006 dated 18.02.2008 holding that State of Orissa has no
jurisdiction to impose entry tax on goods imported from outside and are
not manufactured within the state, the State of Orissa has filed a SLP
before the Hon'ble Supreme Court which has passed an interim order
dated 03.02.2010 directing the company to deposit 1/3rd of the amount
of entry tax on such purchases pending disposal of the SLP. In
pursuance of the afore- said order, the company has deposited a sum of
Rs.55.48 lacs (Rs.23.68 lacs) against the entry tax of Rs.166.44 lacs
(Rs.71.04 lacs) for the financial year 2008-09 to 2011-12.
2.4 The payment of remuneration to Shri R.S. Goenka, Executive
Chairman and Shri P.S. Patwari, Executive Director for the financial
year 2011-12 is subject to the approval of the Central Government.
2.5 There are no outstanding or delayed payments to the Micro, Small
and Medium Enterprises and hence disclosures, if any, relating to
amounts unpaid as at the year end together with interest paid / payable
as required under the Micro, Small and Medium Enterprises Developments
Act, 2006 are not required.
2.6 Related party disclosures
a. Key Management Personnel
Shri R.S. Goenka
Shri R.S. Agarwal
Shri P.S. Patwari
Shri Manish Goenka
Shri R.C. Mall
Shri A. V. Agarwal
b. Relatives of Key Management Personnel
Shri Shyam Patwari
c. Enterprise over which persons described in (a) above are able to
exercise signifi- cant influence
Emami Limited
Emami Biotech Limited
Emami Cement Limited
Emami Foundation
Oriental Sales Agencies (India) Private Limited
Suntrack Commerce Private Limited
2.7 As the Company's business activity falls within a single primary
business segment which is "Manufacture of Paper" and the Company
primarily operates in India, the disclosure requirements of AS-17
"Segment Reporting", notified in the Companies (Accounting Standard)
Rules, 2006 are not applicable.
2.8 Amount due and outstanding to be credited to Investor Education
and Protection Fund - Nil (PY Nil).
2.9 Sales are net of commission to selling agents other than sole
selling agents Rs.527.49 Lacs (Rs.486.53 Lacs).
2.10 Exchange Differences on the principal amount of the foreign
currency borrowings to the extent that they are regarded as an
adjustment to interest cost as mandated by paragraph 4(e) of Accounting
Standard- 16 have been disclosed under Notes "Finance Cost." Such
Exchange differences on principal amount of foreign borrowing are not
interest on the foreign borrowing.
2.11 Previous year's figures have been reclassified / regrouped /
rearranged wherever necessary.
Mar 31, 2011
1. Estimated amounts of capital contracts remaining to be executed and
not provided for (net of advances) Rs.3,122.80 lacs (Rs. 235.38 lacs).
2. Contingent liabilities not provided for in respect of:
a) Outstanding guarantees and letters of credit furnished by the
bankers on behalf of the Company secured by hypothecation of current
assets, as specified in note 6 hereunder - Rs. 2,512.60 lacs (Rs.
345.14 lacs).
b) Sales tax under appeal
(net of advances) - Rs.44.68 lacs (Rs. 270.03 lacs)
c) Central Excise duties
under appeal (net of Advances) - Rs. 1.97 lacs (Rs. 0.96 lacs).
d) ESI Contribution under
appeal - Rs 0.22 lacs (Rs. 0.22 lacs)
e) Bonds / Undertakings given
under EPCG scheme to Custom
Authority -Rs. 578.74 lacs (Rs. 2,190.42 lacs)
3. Loans and Advances include inter corporate deposits of Rs. 282.72
lacs (Rs. 1,085.72 lacs)
4. Term loans from banks and external commercial borrowings are
secured by deposit of title deeds in respect of present and future
immovable properties and hypothecation of present and future movable
fixed assets on a pari passu basis. Term loans from banks and external
commercial borrowings are also secured by way of second charge on
current assets on pari passu basis. Working capital facilities from
banks are secured by hypothecation of present and future stock of
materials, stock-in- process, finished goods, stores and spares, book
debts, outstanding money, claims receivable and further secured by way
of second charge on all immovable and movable properties / fixed assets
both present and future on a pari passu basis. Unsecured oans from
banks are secured by personal guarantee of some of the Directors of the
company and residual charge on Current Assets of the company.
5. Land, buildings and plant & machinery of the Gulmohar Unit and
Paper Machine-1 of Balasore unit were revalued as on 01.04.98 and
01.04.99 respectively by independent approved valuers appointed for the
purpose. The revaluation has resulted in increase in value of such
assets by Rs. 3,097.20 lacs. Due to the said revaluation, there is an
additional charge of depreciation of Rs. 66.02 Lacs (Rs. 76.32 Lacs)
for the year and an equivalent amount has been withdrawn from
revaluation reserve and credited to Profit & Loss Account. The net book
value of such revaluation made till date stands at Rs. 778.67 lacs (Rs.
844.69 lacs).
6. Sales are net of commission to selling agents other than sole
selling agent Rs.486.53 lacs (Rs. 605.46 lacs)
7. Interest includes Interest on Term loans Rs. 1,940.22 lacs (Rs.
2,658.58 lacs) & Net of Interest received Rs. 582.48 lacs (Rs. 1,236.58
lacs).
There are no outstanding or delayed payments to the Micro, Small and
Medium Enterprises, and hence disclosures, if any, relating to amounts
unpaid as at the year end together with interest paid / payable as
required under the Micro, Small and Medium Enterprises Developments
Act, 2006 are not required
Against the order of Honble Orissa High Court W P (C) No. 6515 of 2006
dated 18.02.2008 holding that State of Orissa has no jurisdiction to
impose entry tax on goods imported from outside and are not
manufactured within the state, the State of Orissa has filed a SLP
before the Honble Supreme Court which has passed an interim order
dated 03.02.2010 directing the company to deposit 1/3rd of the amount
of entry tax on such purchases pending disposal of the SLP. In
pursuance of the aforesaid order, the company has deposited a sum of
Rs.23.68 lacs (Rs.15.18 lacs) against the entry tax of Rs. 71.04 lacs
(Rs. 45.55 lacs) for the financial year 2008-09 to 2010-11
8. There is no amount due and outstanding to be credited to investor
education and protection fund
9. Fixed Deposits with banks include fixed deposits pledged as
security Rs.144.30 lacs (Rs. 213.92 lacs)
The Company has exercised the option permitted by Accounting Standard
Amendment Rule, 2009 under the transitiona provisions contained in Para
46 of Accounting Standard (AS) 11 (vide GOI Notification No.GSR 225(E)
dated the 31st March, 2009). A sum of Rs. 23.64 lacs being the exchange
gain for the year arising on reporting of Long-Term Foreign Currency
Monetary Items has been deducted from the cost of depreciable capital
asset as at the 31st March, 2011. The net increase of Rs. 1,049.72 lacs
(after adjusting net loss of Rs. 1,073.36 lacs upto Financial Year
2009-10) in the carrying amount of the depreciable capital asset(s)
would be depreciated over the balance of the life of the assets
10. Term Loans repayable within one year Rs. 5,855.71 lacs (Rs.
6,224.64 lacs)
TDS on interest income on short term deposits and ICDs - Rs. 57.46
lacs (Rs. 124.85 lacs)
i) Licensed capacity not applicable in terms of Govt. of Indias
Notification i) Installed Capacities are certified by the Management.
i) Generation of electricity is for internal consumption
11. Related Party Transactions
Related parties with whom transactions have taken place during the year
are given below:
a. Key Management Personnel
Sri R.S. Agarwal Sri R.S. Goenka Sri P.S. Patwari Sri Aditya Agarwal
Sri Manish Goenka
b. Relatives of Key Management Personnel
Miss Puja Patwari
c. Enterprise over which persons described in (a) above are able to
exercise significant influence
Emami Limited Emami Biotech Limited Emami Cement Limited Emami
Foundation
12. Previous years figures have been regrouped / rearranged wherever
necessary.
Mar 31, 2010
1. Estimated amounts of capital contracts remaining to be executed and
not provided for (net of advances) Rs 235.38 lacs (Rs. 199.18 lacs).
2. Contingent liabilities not provided for in respect of:
a) Outstanding guarantees and letters of credit furnished by the
bankers on behalf of the Company secured by hypothecation of current
assets, as specified in note 6 hereunder - Rs 345.14 lacs (Rs. 2633.13
lacs).
b) Sales tax under appeal (net of advances) - Rs. 270.03 lacs (Rs.
265.62 lacs).
c) Central Excise duties under appeal (net of Advances) - Rs. 0.96 lacs
(Rs. 0.96 lacs).
d) ESI Contribution under appeal - Rs 0.22 lacs (Rs. 0.22 lacs).
e) Bonds / Undertakings given under EPCG scheme to Custom Authority -
Rs. 2190.42 lacs (Rs.2190.42 lacs).
3. Loans and Advances include inter corporate deposits of Rs. 1085.72
lacs (Rs. 3616.72 lacs).
4. Term loans from banks and external commercial borrowings are
secured by deposit of title deeds in respect of present and future
immovable properties and hypothecation of present and future movable
fixed assets on a pari passu basis. Term loans from banks and external
commercial borrowings are also secured by way of second charge on
current assets on pari passu basis. Working capital facilities from
banks are secured by hypothecation of present and future stock of
materials, stock-in-process, finished goods, stores and spares, book
debts, outstanding money, claims receivable and further secured by way
of second charge on all immovable and movable properties/fixed assets
both present and future on a pari passu basis. Unsecured loans from
banks are secured by personal guarantee of some of the Directors of the
company and residual charge on Current Assets of the company.
5. Land, buildings and plant & machinery of the Gulmohar Unit and
Paper Machine-1 of Balasore unit were revalued as on 01.04.98 and
01.04.99 respectively by independent approved valuers appointed for the
purpose. The revaluation has resulted in increase in value of such
assets by Rs. 3097.20 lacs. Due to the said revaluation, there is an
additional charge of depreciation of Rs 76.32 Lacs (Rs. 89.77 Lacs) for
the year and an equivalent amount has been withdrawn from revaluation
reserve and credited to Profit & Loss Account. The net book value of
such revaluation made till date stands at Rs 844.69 lacs (Rs. 921.04
lacs).
6. Miscellaneous Expenses include payment to the Auditors including
Rs. 1.81 lacs (Rs. 1.24 lacs) to Branch Auditors.
i) As Audit Fees Rs. 4.90 lacs (Rs. 4.90 lacs)
ii) As Tax Audit Fees Rs. 0.55 lacs (Rs. 0.55 lacs)
iii) For Certification : Rs. 6.20 lacs (Rs. 1.40 lacs)
iv) Out of pocket expenses : Rs. 0.28 lacs (Rs. 0.25 lacs)
7. Sales are net of commission to selling agents other than sole
selling agent Rs.605.46 lacs (Rs. 443.75 lacs).
8. Interest includes Interest on Term loans Rs. 2658.58 lacs (
Rs.367.85 lacs) & Net of Interest received Rs. 1236.58 lacs (Rs.680.42
lacs).
9. There is no outstanding or delayed payments to the Micro, Small and
Medium Enterprises, and hence disclosures, if any, relating to amounts
unpaid as at the year end together with interest paid / payable as
required under the Micro, Small and Medium Enterprises Developments
Act, 2006 are not required.
10. Against the order of Honble Orissa High Court W P (C) No. 6515 of
2006 dated 1 8.02.2008 holding that State of Orissa has no jurisdiction
to impose entry tax on goods imported from outside and are not
manufactured within the state, the State of Orissa has filed a SLP
before the Honble Supreme Court which has passed an interim order
dated 03.02.2010 directing the company to deposit 1 /3rd of the amount
of entry tax on such purchases pending disposal of the SLP. In
pursuance of the aforesaid order, the company has deposited a sum of
Rs. 15.1 8 lacs against the entry tax of Rs.45.55 lacs for the
financial year 2008-09 and 2009-10.
11. There is no amount due and outstanding to be credited to investor
education and protection fund.
12. Fixed Deposits with banks include fixed deposits pledged as
security Rs 213.92 lacs (Rs. 260.07 lacs).
13. The Company has exercised the option permitted by Accounting
Standard Amendment Rule, 2009 under the transitional provisions
contained in Para 46 of Accounting Standard (AS) 11 (vide GOI
Notification No.GSR 225(E) dated the 31st March 2009). A sum of Rs
2681.38 lacs being the exchange gain for the year arising on reporting
of Long-Term Foreign Currency Monetary Items has been deducted from the
cost of depreciable capital asset as at the 31st March 2010. The net
increase of Rs. 1073.36 lacs (after adjusting net loss of Rs. 3754.74
lacs upto Financial Year 2008-09) in the carrying amount of the
depreciable capital asset(s) would be depreciated over the balance of
the life of the assets.
14. TDS on interest income on short term deposits and ICDs - Rs.
124.85 lacs (Rs. 153.46 lacs).
15. Information pursuant to the provisions of paragraph 3, 4C & 4D of
Part II of Schedule VI of the Companies Act, 1956.
16. Related Party Transactions
Related parties with whom transactions have taken place during the year
are given below:
a. Key Management Personnel
Sri R.S.Agarwal
Sri R. S. Goenka
Sri P. S. Patwari
Sri RC Mall (upto 31.10.2009)
Sri Aditya Agarwal
Sri Manish Goenka
b. Relatives of Key Management Personnel
Miss Puja Patwari.
c. Enterprise over which persons described in (a) above are able to
exercise significant influence
Emami Limited
Emami Biotech Limited
Emami Cement Limited
17. Previous years figures have been regrouped / rearranged wherever
necessary.
Mar 31, 2009
1. Estimated amounts of capital contracts remaining to be executed and
not provided for (net of advances) Rs 199.18 lacs (Rs. 283.90 lacs).
2. Contingent liabilities not provided for in respect of:
a) Outstanding guarantees and letters of credit furnished by the
bankers on behalf of the Company secured by hypothecation of current
assets, as specified in note 6 hereunder à Rs 2633.13 lacs (Rs. 73.47
lacs).
b) Sales tax under appeal (net of advances) Ã Rs. 265.62. lacs (Rs.
261.03 lacs).
c) Central Excise duties under appeal (net of Advances) Ã Rs. 0.96 lacs
(Rs. 0.96 lacs).
d) ESI Contribution under appeal à Rs 0.22 lacs (Rs. 0.22 lacs)
e) Bonds / Undertakings given under EPCG scheme to Custom Authority Ã
Rs. 2190.42 lacs (Rs.2190.42 lacs)
3. Loans and Advances include inter corporate deposits of Rs. 3616.72
lacs (Rs. 3202.72 lacs).
4. Term loans from banks and external commercial borrowings are
secured by deposit of title deeds in respect of present and future
immovable properties and hypothecation of present and future movable
fixed assets on a pari passu basis. Term loans from banks and external
commercial borrowings are also secured by way of second charge on
current assets on pari passu basis. Working capital facilities from
banks are secured by hypothecation of present and future stock of
materials, stock-in-process, finished goods, stores and spares, book
debts, outstanding money, claims receivable and further secured by way
of second charge on all immovable and movable properties/fixed assets
both present and future on a pari passu basis. Term Loan and working
capital limit from banks are additionally secured by personal
guarantees of some of the Directors of the Company. Sales tax loan
received from Government of West Bengal is secured by a residuary
charge ranking next only to the charges in favour of the banks for
Gulmohar unit. Unsecured loans from banks are secured by personal
guarantee of some of the Directors of the company and residual charge
on Current Assets of the company.
5. Land, buildings and plant & machinery of the Gulmohar Unit and Paper
Machine-1 of Balasore unit were revalued as on 01.04.98 and 01.04.99
respectively by independent approved valuers appointed for the purpose.
The revaluation has resulted in increase in value of such assets by Rs.
3097.20 lacs. Due to the said revaluation, there is an additional
charge of depreciation of Rs 89.77 Lacs (Rs. 104.42 Lacs) for the year
and an equivalent amount has been withdrawn from revaluation reserve
and credited to Profit & Loss Account. The net book value of such
revaluation made till date stands at Rs 921.03. lacs (Rs. 1010.80
lacs).
6. Miscellaneous Expenses include payment to the Auditors including
Rs.1.45 lacs (Rs. 1.18 lacs) to Branch Auditors.
i) As Audit Fees : Rs. 4.90 lacs (Rs. 4.90 lacs).
ii) As Tax Audit Fees Rs. 0.55 lacs : (Rs. 0.55 lacs)
iii) For Certification :Rs. 1.40 lacs : (Rs. 0.68 lacs)
7. Sales are net of commission to selling agents other than sole
selling agent Rs.443.75 lacs (Rs. 235.69 lacs).
8. Advances include Rs. 43.00 lacs receivable from Shri R.S.Goenka,
Executive Chairman, being the excess amount of Commission realizable
from him on restatement of Accounts for the financial year 2007-08.
9. There is no outstanding or delayed payments to the Micro, Small and
Medium Enterprises. And hence disclosures, if any, relating to amounts
unpaid as at the year end together with interest paid / payable as
required under the Micro, Small and Medium Enterprises Developments
Act, 2006 are not required.
10. There is no amount due and outstanding to be credited to investor
education and protection fund.
11. Fixed Deposits with banks include fixed deposits pledged as
security Rs 260.07 lacs (Rs. 114.54 lacs).
12. The Company has exercised the option permitted by Accounting
Standard Amendment Rule, 2009 under the transitional provisions
contained in Para 46 of Accounting Standard (AS) 11 (vide GOI
Notification No.GSR 225(E) dated the 31st March 2009). The effect of
this notification has been given in the financial year 2007-08 by
revising the Audited Accounts for the said year. A sum of Rs 6364.80
lacs being the exchange loss for the year arising on reporting of
Long-Term Foreign Currency Monetary Items has been added to the cost of
depreciable capital asset as at the 31st March 2009. The net increase
of Rs. 3754.74 lacs (after adjusting net gain of Rs. 2610.06 lacs
relating to Financial Year 2007-08) in the carrying amount of the
depreciable capital asset(s) would be depreciated over the balance of
the life of the assets.
13. TDS on interest income on short term deposits and ICDÃs à Rs.
153.46 lacs (Rs. 203.44 lacs)
14. Related Party Transactions
Related parties with whom transactions have taken place during the year
are given below:
a. Key Management Personnel
Sri R.S.Agarwal
Sri R. S. Goenka
Sri P. S. Patwari
Sri R C Mall
Sri Aditya Agarwal
Sri Manish Goenka
b. Relatives of Key Management Personnel
Sri Aditya Agarwal
c. Enterprise over which persons described in (a) above are able to
exercise significant influence
Emami Limited
Emami Biotech Limited
Emami Cement Limited
15. Previous yearÃs figures are as per revised Accounts for the
financial year 2007-08 which are subject to adoption by the
shareholders in the Annual General Meeting.
Disclaimer: This is 3rd Party content/feed, viewers are requested to use their discretion and conduct proper diligence before investing, GoodReturns does not take any liability on the genuineness and correctness of the information in this article
More Information on Emami Paper Mills Ltd.
-
Emami Paper Mills Ltd. Tools
- Bulk Deals
- Block Deals
-
Emami Paper Mills Ltd. Company Details
- Company Profile
- Company History
- Management Team
- Capital Structure
- Product Mix
- Banker/Auditor/Registrar
-
Company History
- BSE Price History
- NSE Price History
-
Emami Paper Mills Ltd. Key Financial Ratios
- Ratios
-
Emami Paper Mills Ltd. Results
- Quarterly Results
- Half Yearly Results
- Nine Months Results
- Annual Results
-
Emami Paper Mills Ltd. Financial Data
- Audited Results
- Cash Flow
- Balance Sheet
-
Emami Paper Mills Ltd. Reports
- Accounting Policies
- Auditors Report
- Directors Report
- Notes To Account
-
Emami Paper Mills Ltd. Corporate Announcements
- Book Closure
- Dividend
- Board Meetings
-
Stocks To Buy Today, Dec 19: Top 2 Picks By Riyank Arora of Mehta Equities For Profitable Trading On Friday -
Stocks To Buy Today, Dec 18: Top 2 Picks By Riyank Arora of Mehta Equities For Profitable Trading On Thursday -
Stocks To Buy Today, Dec 17: Top 2 Picks By Riyank Arora of Mehta Equities For Profitable Trading On Wednesday -
Stocks To Buy Today, Dec 16: Top 2 Picks By Riyank Arora of Mehta Equities For Profitable Trading On Tuesday -
India Stock Market Weekly Review: Nifty and Sensex Fall as Caution Spreads -
Stocks To Buy Today, Dec 15: Top 2 Picks By Riyank Arora of Mehta Equities For Profitable Trading On Monday
-
Stocks To Buy Today, Dec 12: Top 2 Picks By Riyank Arora of Mehta Equities For Profitable Trading On Friday -
Market Outlook 2026: Kotak Securities Sees Nifty 50 at 30,000; THESE 4 Sectors Lead Rally, Gold To Stay Strong -
Stocks To Buy Today, Dec 10: Top 2 Picks By Riyank Arora of Mehta Equities For Profitable Trading On Wednesday -
D-Street Bleeds For 2nd Day! Sensex Slumps 678 Pts; Nifty Cracks 25,800; Why Stock Market Is Falling Today? -
Stocks To Buy Today, Dec 9: Top 2 Picks By Riyank Arora of Mehta Equities For Profitable Trading On Tuesday -
Stocks To Buy Today, Dec 8: Top 4 Picks By Riyank Arora of Mehta Equities For Profitable Trading On Monday -
Stock Market Alert! Major Pre-Open Session Change From Dec 8: Full Timings, Rules & All You Need To Know -
Bank Nifty Surges: RBI’s 25 bps Rate Cut Triggers Strong Upside in Major Banking Stocks -
Closing Bell: Sensex Ends 158 pts Higher, Nifty Climbs Above 26,000; Hero MotoCorp, HAL Up 2% Each -
Stocks To Buy Today, Dec 4: Top 2 Picks By Riyank Arora of Mehta Equities For Profitable Trading On Thursday
-
Block for 8 hours
-
Block for 12 hours
-
Block for 24 hours
-
Don't block
Sign in with Google- Male
- Female
- Others
- Under 18
- 18 to 25
- 26 to 35
- 36 to 45
- 45 to 55
- 55+