Notes to Accounts of Orient Paper & Industries Ltd.

Mar 31, 2025

2.18 Provisions and contingencies

Provisions are recognised when the Company has a present legal or constructive obligation as a result of past
events, it is probable that an outflow of resources will be required to settle the obligation and the amount can be
reliably estimated. Provisions are not recognised for future operating losses.

Provisions are measured at the present value of management’s best estimate of the expenditure required to
settle the present obligation at the end of the reporting period. The discount rate used to determine the present
value is a pre-tax rate that refects current market assessments of the time value of money and the risks specific
to the liability. The unwinding of the discount is recognised as finance cost.

A disclosure for contingent liabilities is made 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 embodying economic benefits will be required to settle or
a reliable estimate of the amount cannot be made. The Company does not recognize a contingent liability but
discloses its existence in the financial statements.

Contingent asset is not recognised in financial statements since this may result in the recognition of income that
may never be realised. However, when the realisation of income is virtually certain, then the related asset is not
a contingent asset and is recognized.

Provisions, contingent liabilities and contingent assets are reviewed at each Balance Sheet date.

2.19 Earnings per share

(i) Basic earnings per share

Earnings per share is calculated by dividing the net profit or loss before OCI for the year by the weighted
average number of equity shares outstanding during the year. For the purpose of calculating diluted earnings
per share, the net profit or loss before OCI for the period attributable to equity shareholders and the weighted
average number of shares outstanding during the period are adjusted for the effects of all dilutive potential
equity shares.

¦ the profit attributable to owners of the Company

¦ by the weighted average number of equity shares outstanding during the financial year

(ii) Diluted earnings per share

Diluted earnings per share adjusts the figures used in the determination of basic earnings per share to take
into account:

¦ the after income tax effect of interest and other financing costs associated with dilutive potential equity
shares.

2.20 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, including revenues and expenses that relate to transactions with any of the
Company’s other components, and for which discrete financial information is available. Operating segments are
reported in a manner consistent with the internal reporting provided to the chief operating decision maker.

The chief operating decision maker is responsible for allocating resources and assessing performance of the
operating segments and has been identified as the Managing Director & CEO of the Company. Refer Note 43 for
segment information presented.

2.21 Standards issued but not yet effective

Ministry of Corporate Affairs (“MCA”) notifies new standards or amendments to the existing standards under
Companies (Indian Accounting Standards) Rules as issued from time to time. For the year ended 31^st March, 2025,
MCA has notified Ind AS - 117 Insurance Contracts and amendments to Ind AS 116 - Leases, relating to sale and
leaseback transactions. The Company has reviewed the new pronouncements and based on its evaluation has
determined that it does not have any significant impact in its financial statements.

Note 3: Property, plant and equipment (Contd.)

(II) The Company as a lessor
Operating lease

The Company has leased out certain buildings on operating leases. The lease term is for 1-3 years and thereafter
renewable. There is escalation clause in the lease agreements. The rent is not based on any contingencies.

There are no restrictions imposed by lease arrangements. The leases are cancellable. The Company has
classified these leases as operating leases, because they do not transfer substantially all of the risks and rewards
incidental to the ownership of the assets. Note 4 sets out information about the operating leases of investment
property.

(a) Term loan of Rs. 3,750.00 lacs (31^st March 2024: Rs. 5,250.00 lacs) from a bank is secured by way of first pari-passu
charge on entire fixed assets of Company at Amlai & Brajrajnagar and carries interest @ 9.05 % p.a. (31^st March 2024:
@ 9.05%) and is repayable in 20 equal quarterly instalments starting from 31^st December 2022 up to 14^th September
2027.

(b) Term loan of Rs. 1,750.00 lacs (31^st March 2024: Rs. 2,750.00 lacs) from a bank is secured by way of first pari-passu
charge on all movable and immovable fixed assets (including land and building) of the Company (present and future)
located at Amlai, Madhya Pradesh and Brajrajnagar, Odisha and carries interest @ 8.91% p.a. (31^st March 2024: @
9.41%) and is repayable in 20 equal quarterly instalments starting from 26^th February 2022 up to 26^th November
2026.

(c) Term loan of Rs. 5,250.00 lacs (31^st March 2024: Rs. 6,750.00 lacs) from a bank is secured by way of first pari-passu
charge over the immovable fixed assets and movable fixed assets of the Company situated at Amlai, Madhya Pradesh
(manufacturing unit) and at Brajrajnagar, Odisha and carries interest @ 9.40% p.a.(31^st March 2024: @ 9.15% ) and is
repayable in 20 equal quarterly instalments starting from 19^th October 2023 up to 19^th July 2028.

(d) Term loan of Rs. 4,000.00 lacs (31^st March 2024: Rs. Nil) from a bank is secured by way of first pari-passu charge
over the immovable fixed assets and movable fixed assets of the Company situated at Amlai, Madhya Pradesh
(manufacturing unit) and at Brajrajnagar, Odisha and carries interest @ 9.10% p.a.(31^st March 2024: @ Nil) and is
repayable in 12 structured quarterly instalments starting from 31^st December 2025 to 30^th September 2028.

Note 19: Borrowings (Contd.)

(e) Term loan of Rs. 4,598.20 lacs (31^st March 2024: Rs. Nil) from a bank is secured by way of first pari-passu charge
over the immovable fixed assets and movable fixed assets of the Company situated at Amlai, Madhya Pradesh
(manufacturing unit) and at Brajrajnagar, Odisha and carries interest @ 8.65 % p.a. (31^st March 2024: @ Nil) and is
repayable in 20 equal quarterly instalments starting from 31^st December 2025 to 30^th September 2030.

(f) Cash credit / working capital demand loans Rs. 9,975.82 lacs (31^st March 2024: Rs. 9,104.08 lacs) from banks includes
security against hypothecation of inventories, book debts and other current assets of the Company and second charge
on fixed assets of the Company and are repayable on demand / at the end of the term of WCDL. The above loans carry
interest @ 7.75 % p.a. to 10.60 % p.a. (31^st March 2024: 7.75% p.a. to 10.05% p.a.).

(g) Short term loan of Rs. Nil (31^st March 2024: Rs. 5,000.00 lacs) from other financial institution secured by way of
pledge of certain investments held by the Company, carried interest @ 10.00% p.a. (31^st March 2024: 10.00% p.a.)
and has been repaid on 26^th March 2025.

(h) Short term loan of Rs. Nil (31^st March 2024: Rs. 3,000.00 lacs) from a bank was unsecured, carried interest @ 8.85%
p.a. (31^st March 2024: 8.85% p.a.) and has been repaid on 25^th February 2025.

(i) Short term loan of Rs. 3,000.00 lacs (31^st March 2024: Rs. Nil) from a bank is unsecured carries interest @ 8.97 % to
9.09 % p.a. (31^st March 2024: Nil) repayable on 7^th May 2025 Rs. 2,000.00 lacs and on 28^th June 2025 Rs. 1,000.00
lacs.

(j) Short term loan of Rs. 7,500.00 lacs (31^st March 2024: Rs. Nil) from a bank is unsecured carries interest @ 9% p.a.
(31^st March 2024: Nil) and to be repaid in equal monthly instalment from the end of 9^th month to 12 month from the
date of first disbursement starting from 29^th May 2025 to 27^th March 2026.

(k) Refer note 40 for information about liquidity risk and market risk on borrowings.

The applicable Indian statutory income tax rate for the year ended 31^st March 2025 was 34.944% and for the year
ended 31^st March 2024 was 34.944%.

Taxation Laws (Amendment) Act, 2019 enacted on December 11, 2019 amends the Income Tax Act, 1961 to provide
domestic companies an option for lower tax rates. The Company has not opted for the lower tax rate and continues
to follow old tax rate which were existing prior to the above said amendment in making provision of its tax liability
for the financial year.

The fair value of unquoted equity securities designated as fair value through other comprehensive income is
determined using Level 3 inputs like earnings, earning multiples etc. Significant unobservable inputs comprise long
term growth rates, market conditions of the specific industry etc. However, the changes in the fair values due to
changes in unobservable inputs will not be material to the financial statements.

Note 39: Capital management

The Company’s objectives when managing capital are to safeguard its ability to continue as a going concern, so that it can
continue to provide returns for shareholders and benefits for other stakeholders and maintain an optimal capital structure
to reduce the cost of capital, while protecting and strengthening the balance sheet through the appropriate balance of
debt and equity funding.

The Company manages its capital structure and makes adjustments in light of changes in economic conditions and the
requirements of the financial covenants. In order to maintain or adjust the capital structure, the Company may adjust the
amount of dividends paid to shareholders, return of capital to shareholders, issue new shares or sell assets to reduce debt.

The Company’s policy is to maintain a stable and strong capital structure with a focus on total equity so as to maintain
investors, creditors and market confidence and to sustain future development and growth of its business. The Company
will take appropriate steps in order to maintain, or if necessary adjust, its capital structure. The Company is not subject to
any externally imposed capital requirements. Management monitors the return on capital, as well as the level of dividends
to ordinary shareholders.

The Company’s activities expose it to credit risk, liquidity risk and market risk (i.e. foreign currency risk, interest rate risk
and price risk).

Risk management framework

The Company’s board of directors has overall responsibility for the establishment and oversight of the Company’s risk
management framework. The board of directors has established the risk management committee, which is responsible
for developing and monitoring the Company’s risk management policies. The committee reports regularly to the board of
directors on its activities. The Board of Directors also review these risks and related risk management policy.

The Company’s risk management policies are established to identify and analyse the risks faced by the Company, to set
appropriate risk limits and controls and to monitor risks and adherence to limits. Risk management policies and systems
are reviewed regularly to reflect changes in market conditions and the Company’s activities. The Company, through its
training and management standards and procedures, aims to maintain a disciplined and constructive control environment
in which all employees understand their roles and obligations.

The audit committee oversees how management monitors compliance with the Company’s risk management policies and
procedures and reviews the adequacy of the risk management framework in relation to the risks faced by the Company.
The audit committee is assisted in its oversight role by internal audit. Internal audit undertakes both regular and ad hoc
reviews of risk management controls and procedures, the results of which are reported to the audit committee.

This note explains the sources of risk which the entity is exposed to and how the entity manages the risk and the impact
of it in the financial statements.

(A) Credit risk

The Company takes on exposure to credit risk, which is the risk that counterparty will default on its contractual
obligations resulting in financial loss to the Company. The maximum exposure to credit risk at the reporting date is
the carrying value of each class of financial assets disclosed in note 38. The Company is exposed to credit risk from
its operating activities (primarily trade receivables).

(i) Trade and other receivables

Customer credit risk is managed by the Company through established policy and procedures and control relating
to customer credit risk management. Trade receivables are non-interest bearing and are generally carrying up to
10 days credit terms. The Company has a detailed review mechanism of overdue customer receivables at various
levels within organisation to ensure proper attention and focus for realisation. Trade receivables are consisting
of a large number of customers. Where credit risk is high, domestic trade receivables are backed by security
deposits. Export receivables are backed by letters of credit.

(ii) Other financial assets and deposits

Credit risk from balances with banks, deposits, loan to employees, other financial assets etc is managed by
the Company’s finance department. Investments of surplus funds are made only with approved counterparties
in accordance with the Company’s policy. None of the Company’s cash equivalents with banks, deposits,
investments and other receivables were past due or impaired as at 31^st March 2025 and 31^st March 2024 (except
as mentioned below).

The Company’s historical experience of collecting receivables and the level of default indicate that credit risk
is low and generally uniform across markets. All overdue customer balances are evaluated taking into account
the age of the dues, specific credit circumstances, the track record of the counterparty etc. The Company uses
judgement in making these assumptions based on the Company’s past history, existing market condition as well
as forward looking estimates at the end of each reporting period. The impairment provision as disclosed above
are based on assumptions about risk of default and expected loss rates. Loss allowances and impairment is
recognised, where considered appropriate by responsible management. Expected credit loss measured on loan
to employees and other financial assets is not significant.

(B) Liquidity risk

Liquidity risk is the risk that an entity will encounter difficulty in meeting obligations associated with financial liabilities
that are settled by delivering cash or another financial asset. 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.

Management monitors rolling forecasts of the Company’s liquidity position and cash and cash equivalents on the
basis of expected cash flows. This is generally performed in accordance with practice and limits set by the Company.

Maturities of financial liabilities

The tables below analyse the Company’s financial liabilities into relevant maturity groupings based on their contractual
maturities.

The following table shows the maturity analysis of the Company’s financial liabilities based on contractually agreed
undiscounted cash flows along with its carrying value as at the Balance Sheet date.

*gross of debt origination cost

The maturity analysis of the Company’s lease liabilities based on contractually agreed undiscounted cash flows is
given in Note 26.

(C) Market risk

Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of
changes in market prices. Market risk comprises three types of risk: currency risk, interest risk and other price risk, such
as commodity price risk and securities price risk. Financial instruments affected by market risk include borrowings,
investments, trade payables, trade receivables, etc.

(i) Foreign currency risk

The Company deals with foreign trade payables , trade receivables etc. and is therefore exposed to foreign
exchange risk associated with exchange rate movement.

Foreign currency risk is the risk that the fair value or future cash flows of an exposure will fluctuate because of
changes in foreign exchange rates. The Company’s exposure to the risk of changes in foreign exchange rates
relates primarily to the Company’s operating activities. Such foreign currency exposures are not hedged by the
Company. Foreign currency exchange rate exposure is partly balanced by purchasing of goods, commodities
and services in the respective currencies. The Company has a treasury department which monitors the foreign
exchange fluctuations on the continuous basis and advises the management of any material adverse effect on
the Company.

(ii) Interest rate risk

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because
of changes in market interest rates. The Company’s exposure to the risk of changes in market interest rates
relates primarily to the Company’s debt obligations with floating interest rates.

The Company’s main interest rate risk arises from borrowings with variable rates, which expose the Company to
cash flow interest rate risk. During 31^st March 2025 and 31^st March 2024, the Company’s borrowings at variable
rate were mainly denominated in Rupees.

The Company’s fixed rate borrowings and deposits with banks are carried at amortised cost. They are therefore
not subject to interest rate risk as defined in Ind AS 107, since neither the carrying amount nor the future cash
flows will fluctuate because of a change in market interest rates.

(iii) Securities price risk

Securities price risk is the risk that the fair value of a financial instrument will fluctuate due to changes in market
prices. The Company’s exposure to securities price risk arises from investments in equity instruments held by the
Company and classified in the balance sheet at fair value through other comprehensive income. To manage its
price risk arising from investments in equity securities, the Company does regular monitoring of security prices.

Sensitivity

The table below summarises the impact of increase/decrease of the share prices on the Company’s investment in
quoted equity, with all other variables held constant.

Note 45: Employee benefits

(i) Compensated absences

The Company provides for accumulation of leave by certain categories of its employees. These employees can carry
forward a portion of the unutilised leave balances and utilise it in future periods or receive cash in lieu thereof as per
the Company’s policy. The Company records a provision for leave obligations in the period in which the employees
render the services that increases this entitlement.

The total provision recorded by the Company towards this obligation was Rs. 588.10 lacs (31^st March 2024: Rs.
576.96 lacs). The amount of the provision is presented as current, since the Company does not have an unconditional
right to defer settlement for any of these obligations.

(ii) Post-employment defined benefit plan
Gratuity

The Company provides for gratuity, a defined benefit retirement plan covering eligible employees. Every employee is
entitled to a benefit equivalent to fifteen days salary last drawn for each completed year of service on terms not less
favourable than the provisions of the Payment of Gratuity Act, 1972. The same is payable at the time of separation
from the Company or retirement, whichever is earlier. The benefits vest after five years of continuous service.

The gratuity plan is administered and managed by the Trustees who are responsible for the overall governance of
the plan and to act in accordance with the provisions of the trust deeds and rules in the best interests of the plan
participants.

(i) Risk exposure

Through its defined benefit plans the Company is exposed to a number of risks, the most significant of which are
detailed below:

Investment risk:

The defined benefit plans are funded with insurance companies of India. The Company does not have any liberty
to manage the funds provided to insurance companies. The present value of the defined benefit plan liability is
calculated using a discount rate determined by reference to the Government of India bonds. If the return on plan
asset is below this rate, it will create a plan deficit.

Discount rate risk:

The Company is exposed to the risk of fall in discount rate. A fall in discount rate will eventually increase the
ultimate cost of providing the above benefit thereby increasing the value of the liability.

Demographic risk:

In the valuation of the liability, certain demographic (mortality and attrition rates) assumptions are made. The
Company is exposed to this risk to the extent of actual experience eventually being worse compared to the
assumptions thereby causing an increase in the benefit cost.

Salary growth risk

The present value of the defined benefit plan liability is calculated by reference to the future salaries of plan
participants. An increase in the salary of the plan participants will increase the plan liability.

Note 45: Employee benefits (Contd.)

(iv) Provident fund

(a) Provident fund for certain eligible employees is managed by the Company through the “Birla Industries Provident
Fund”, in line with the Provident Fund and Miscellaneous Provisions Act, 1952. The plan guarantees interest at
the rate notified by the Provident Fund Authorities. The contribution by the employer and employee together with
the interest accumulated thereon are payable to employees at the time of their separation from the Company or
retirement, whichever is earlier. The benefits vest immediately on rendering of the services by the employee.

The Company has an obligation to fund any shortfall on the yield of the trust’s investments over the administered
interest rates on an annual basis. Actual return earned by the Company has been higher in the past years. The
actuary has provided a valuation for provident fund liabilities on the basis of guidance issued by Actuarial Society
of India and there is no shortfall as at year-end. Return on plan asset and discount rate, as considered by the
actuary, were 8.15 % (31^st March 2024: 8.15%) and 6.60 % (31^st March 2024: 7.00%) respectively.

The Company contributed Rs. 341.21 lacs and Rs. 574.33 lacs during the year ended 31^st March 2025 and 31^st
March 2024 respectively to the above Provident Fund.

(*) Based on discussions with the solicitors/ favourable decisions in similar cases/legal opinions taken by the Company, the Company
has reviewed all its pending litigations and proceedings and has adequately provided for where provisions are required and
disclosed as contingent liabilities where applicable, in its financial statements. The Company does not expect the outcome of these
proceedings to have a materially adverse effect on its financial statements. The company does not expect the impact, if any, to be
material.

b) Outstanding claims from employees not acknowledged as debts, including Bonus , ,,

Amount unascertainable

claims under adjudication and wages for suspension period at Brajrajnagar Unit.

c) In October 1963, the paper division of the Company had applied to the Public Work Department (Irrigation) of the
Madhya Pradesh State Government for drawing water without any charge from Sone River up to 1165 Million Cubic
Feet (MCF) with the provision for increase up to 2500 MCF on full development of paper mill, the permission for which
was granted by the State Government. In August 2000, the Madhya Pradesh State Government issued a notification
and decided to levy charges on water consumption from river resources for industrial purposes with retrospective
effect from June, 1998, the constitutional validity of which was challenged by the Company by way of a writ petition
in the High Court of Madhya Pradesh. During the pendency of the said writ petition, the Water Resource Department
(WRD) of the State Government started raising the bill for consumption of water on the basis of assumption of total
quantum of water allowed to be drawn by the Company at 2500 MCF whereas, as per the Company, the quantum
of water allowed to be drawn was 1165 MCF and the Company had never drawn the water even up to the initial
quantity of 1165 MCF since it had not attained full development of the paper mill. One of the major reasons for not
being able to achieve full development was frequent and perennial shortage of water. Based on an interim order
passed by the Madhya Pradesh High Court in the aforesaid writ petition, the Company started paying water charges
based on actual consumption of water (less than 1165 MCF), while the WRD of the State Government continued to
raise bills on the basis of assumed consumption of 2500 MCF plus interest and penalty thereon. In January 2009,
the High Court of Madhya Pradesh upheld the constitutional validity of August 2000 notification. After the aforesaid
judgement, the Company paid Rs 908.47 lacs being the difference amount between the assumed quantity of 1165
MCF and the actual consumption, while the WRD of the State Government continued to raise the bills on the basis
of assumed quantity of water consumption of 2500 MCF till April 2009, when the Company entered into a new
agreement with the WRD of the State Government for water consumption of only 440 MCF effective from May 2009.
The total balance demand for the aforesaid period amounts to Rs 2,42,772.67 lacs (31^st March 2024: Rs 2,14,759.86
lacs) [including interest and penalty of Rs 2,41,359.12 lacs (31^st March 2024: Rs 2,13,346.31 lacs)] as at 31^st March
2025, for which no provision has been made in the books. The WRD of the State Government issued a notice for
recovery of aforesaid demand in February 2015, against which the Company filed a writ petition in the Madhya
Pradesh High Court and obtained an interim stay on the recovery. Also, Madhya Pradesh High Court has set aside
demand for penal interest in a similar case for another Company.

On 11^th July, 2020, the WRD has given a letter asking for consent on their offer of one-time settlement at Rs 7,915
lacs and withdrawal of Writ petition from the High Court for which the Company has not given any consent. The
Company has been legally advised that it has a fit case for quashing the present demand.

Note 48: Contingent liabilities (Contd.)

d) (i) The Company’s Paper plant and Caustic Soda plant at Amlai were having individual factory license till 2011.

The Company had applied for common factory license for both the plants enabling to supply Power to Caustic
Soda plant from Paper plant. Simultaneously, it had filed a petition with Madhya Pradesh Electricity Regulatory
Commission (MPERC) for direction on the action if common factory license was granted. On 11^th May, 2012
the MPERC has directed Company to keep any one connection and surrender the other one. Accordingly, the
Company had surrendered its Paper plant connection keeping the Caustic Soda plant connection. However, the
Madhya Pradesh Poorv Khestra Vidyut Vitran Company Limited (MPPKVVCL) has interpreted the order otherwise
and had considered the connection which was retained by Company as unauthorized one. They had issued final
order dated 16-06-2012 under Section 126 (3) of Electricity Act 2003 levying Rs 1,287 lacs as electricity charges
from 17-04-2012 (Date of issuance of Common Factory license) applying penal rate. The Company had filed
an application with MPERC for clarification on direction dated 11^th May 2012. The MPERC vide its order dated
04-08-2012 held that it has given option to the Company to keep any one of the two connection surrendering the
second one. They had written in their Order that the order of the MPERC dated 11-05-2012 has been completely
mis construed by the MPPKVVCL and by a convoluted logic raised claim of unauthorized use of electricity. They
had directed respondent to regularize the connection per Company’s application and submit compliance within
a month. The MPPKVVCL has signed a supplementary HT agreement dated 09-11-2012 effective from 17-04¬
2012 regularizing the connections as per direction of the Commission. However,the Company has filed an appeal
with Appellate Authority District Shahdol for quashing the order dated 16-06-2012 of MPPKVVCL citing (i)
Clarification order of MPERC dated 04-08-2012 and (ii) subsequently regularization of connection by MPPKVVCL
by signing supplementary HT Agreement.

(ii) Similarly, on 21-12-2011, a vigilance team of MPPKVVCL visited its Paper plant at Amlai for inspection of the
usages of Power supplied by them. During their visit, they had observed that Company was erecting a captive
Power plant and operating from time to time water pumps for drawing water from river Sone for its factory use.
They had considered these uses as unauthorized load of 850 KvA from Power supplied by MPPKVVCL and
issued a final order dated 21-08-2012 assessing a demand of Rs 155 lacs. The Company had filed an appeal
against this order with the Appellate Authority District Shahdol for quashing the order citing that (i) it is used for
production of Paper for which connection was granted, (ii) that the power used for the alleged activity is from its
own power generating plant.

However, the Appellate authority has decided both the cases against the Company vide its orders dated 29-11¬
2019 and the Company has received demand letter No AA/SS/06/HT/1368 dated 09-12-2019 demanding Rs.
2,172 lacs. against order in case No 02/12-13 and Rs 235 lacs against order in case No 03/12-13 for unauthorized
use of power making total demand of Rs 2,407 lacs.

The Company has filed an appeal in MP High Court against both the orders vide WP No 28342/ 2019 and WP
No 28354 / 2019 and requested for relief against the demand. The Hon’ble MP High Court vide its order dated
21.01.2020 had passed an interim order in favour of the Company thereby restraining the respondents from
taking any further coercive action against the Company. Matters are still at the stage of completion of pleadings
because the respondents have not yet submitted any replies or affidavits in the case. Further, the Company has
been legally advised by its lawyer that these cases are fit cases for quashing the present demand, therefore, has
not provided any liability in its books of accounts.

e) The Company has received orders for resumption of certain leasehold land. The same was challenged by the Company
vide a writ petition made in the High Court of Orissa, Cuttack for which it has received stay order / order for no coercive
action shall be taken against the Company. Based on legal advice, the Company does not expect the outcome of these
proceedings to have a material effect on its financial statements.

f) In respect of above contingent liabilities, it is not practicable for the Company to estimate the timings of cash outflows,
if any, pending resolution of the respective proceedings. The Company does not expect any reimbursements in respect
of above.

Note 51:

The Company has not made any investments during the year. The Company did not stood guarantee, or provided security
to any company / Firm / Limited Liability Partnership/ Other Party. The Company has not granted secured/ unsecured
loans/advances in nature of loans to any Company / Firm / Limited Liability Partnership / Other Party during the year other
than loan to employees.

The aggregate amount during the year, and balance outstanding at the balance sheet date with respect to such loans to
employee is as per the table given below:

Expense arising from share based payment transactions

Total expenses / (reversal of expenses) arising from share-based payment transactions recognised in Statement of Profit
and Loss as part of employee benefit expenses is (Rs. 5.68) lacs. (31^st March 2024: Rs.28.54 lacs) Refer Note 32.

Note 53:

No funds have been advanced or loaned or invested (either from borrowed funds or share premium or any other sources
or kind of funds) by the Company to or in any other person(s) or entity(ies), including foreign entities (“Intermediaries”)
with the understanding, whether recorded in writing or otherwise, that the Intermediary shall lend or invest in party
identified by or on behalf of the Company (Ultimate Beneficiaries). The Company has not received any fund from any
party(s) (Funding Party) with the understanding that the Company shall whether, directly or indirectly lend or invest in
other persons or entities identified by or on behalf of the funding party (“Ultimate Beneficiaries”) or provide any guarantee,
security or the like on behalf of the Ultimate Beneficiaries.

As per our report of even date.

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

Chartered Accountants Orient Paper & Industries Limited

Firm Registration Number: 101248W/W-100022 CIN No. L210UOR1936PLC000117

Jayanta Mukhopadhyay C. K. Birla Anant Agarwal

Partner Chairman Managing Director & CEO

Membership No.: 055757 (DIN 00118473) (DIN 02640025)

Place : London Place : Kolkata

Amit Poddar R. P. Dutta

Chief Financial Officer Company Secretary

(ACA 060247) (ACS 14337)

Place: Kolkata Place : Kolkata Place : Kolkata

Date: 22 May 2025 Date: 22 May 2025

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Mar 31, 2024

(i) The Company has lease contracts for leasehold land, plant and equipment and also non factory building. Leasehold land is perpetual in nature except for few parcels of land which are depreciated over the lease tenure. Lease of plant and equipment have lease terms of 9 years & 9 months and may be extended for such duration and on such terms as the parties may mutually agreed. Non factory building have lease term of 3 years and may be extended for such duration and on such terms as the parties may mutually agree. Extension and termination options are included in leases contracts of the Company. These are used to maximise operational flexibility in terms of managing the assets used in the Company’s operations. The extension and termination options held are exercisable by both the Company and lessor.

(ii) Leasehold land includes depreciation Rs. 137.78 lacs (31^st March 2023: Rs. 137.78 lacs) on assets at Brajrajnagar unit, where manufacturing operations were not carried on during the year.

# The Variable lease payment relates to a lease arrangement wherein the lease payment amounts to the payment made in respect of solar power. Since the lease payment varies substantially, it has been classified as variable lease payment.

(d) The Company had a total cash outflows of Rs. 207.41 lacs for leases for the year ended 31^st March 2024 (31^st March 2023: Rs.207.41 lacs).

(II) The Company as a lessor Operating lease

The Company has leased out certain buildings on operating leases. The lease term is for 1-3 years and thereafter renewable. There is escalation clause in the lease agreements. The rent is not based on any contingencies. There are no restrictions imposed by lease arrangements. The leases are cancellable. The Company has classified these leases as operating leases, because they do not transfer substantially all of the risks and rewards incidental to the ownership of the assets. Note 4 sets out information about the operating leases of investment property.

(a) The Company along with other co-owners, has developed a plot of land and constructed a building thereon at 25, Barakhamba Road, New Delhi, where the Company’s share is 15%. The registration of the said plot of land of value Rs. 432.94 lacs (31^st March 2023: Rs. 432.94 lacs) in the name of the Company is still pending.

(b) Investment properties include buildings held in joint ownership Rs. 607.25 lacs (31^st March 2023: Rs. 611.62 lacs).

Measurement of fair values

i. Fair value hierarchy and Valuation technique

The fair value of investment property was determined by an independent property valuer. The valuation is based on market approach / income approach as considered appropriate for relevant properties.

The fair value measurement for all of the investment property has been categorised as a Level 3 fair value based on the inputs to the valuation technique used.

(a) Write downs of inventories aggregating to Rs. 63.70 lacs (31^st March 2023: Rs. 68.21 lacs) are recognized as an expense and included in consumption of stores and spare parts in note 35.

(b) In addition, inventories of finished goods and work-in-progress have been reduced by Rs. 65.50 lacs (31^st March 2023: Rs. NIL) and Rs. 18.73 Lacs (31^st March 2023: Rs. NIL) respectively as a result of the write-down to net realisable value. The write-downs are included in changes in inventories of finished goods and work-in-progress

(c) Inventories are pledged as security for borrowings. Refer Note 19.

(b) Terms/ rights attached to equity shares

The Company has only one class of equity shares having a par value of Re.1 per share. Accordingly, all equity shares rank equally with regard to dividends and shares in the Company’s residual assets on winding up. Each holder of equity shares is entitled to one vote per share. 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.

(a) Term loan of Rs. 5250.00 lacs (31^st March 2023: Rs. 6750.00 lacs) from a bank is secured by way of first pari-passu charge on entire fixed assets of Company at Amlai & Brajrajnagar and carries interest @ 9.05 % p.a. (31^st March 2023: @ 8.80% )and is repayable in 20 equal quarterly instalments starting from 31^st December 2022 up to 14^th September 2027.

(b) Term loan of Rs. 2750.00 lacs (31^st March 2023: Rs. 3750.00 lacs) from a bank is secured by way of first pari-passu charge on all movable and immovable fixed assets (including land and building) of the Company (present and future) located at Amlai, Madhya Pradesh and Brajrajnagar, Odisha and carries interest @ 9.41% p.a. (31^st March 2023: @ 9.33% ) and is repayable in 20 equal quarterly instalments starting from 26^th February 2022 up to 26^th November 2026.

(c) Term loan of Rs. 6750.00 lacs (31^st March 2023: Rs. 7500.00 lacs) from a bank is secured by way of first pari-passu charge over the immovable fixed assets and movable fixed assets of the Company situated at Amlai, Madhya Pradesh (manufacturing unit) and at Brajrajnagar, Odisha and carries interest from@ 9.15% p.a.(31^st March 2023: @ 8.05% to 8.40%) and is repayable in 20 equal quarterly instalments starting from 19^th October 2023 up to 19^th July 2028.

(d) Cash credit / working capital demand loans from banks includes security against hypothecation of inventories, book debts and other current assets of the Company and second charge on fixed assets of the Company and are repayable on demand / at the end of the term of WCDL. The above loans carry interest @ 7.75 % p.a. to 10.05 % p.a. (31^st March 2023: 7.80% p.a. to 10.05% p.a. ).

(e) Short term loan of Rs. 5,000.00 lacs (31^st March 2023: Rs. 5000.00 lacs) from others is secured by way of pledge of certain investments held by the Company, carries interest @ 10.00 % p.a.(31^st March 2023: 9.50% p.a.) and is repayable on 26^th March 2025.

(f) Short term loan of Rs. 3,000.00 lacs from a bank is unsecured carries interest @ 8.85 % p.a. and is repayable in 3 equal quarterly instalments starting from 25^th August 2024 up to 25^th February 2025.

(g) Refer note 40 for information about liquidity risk and market risk on borrowings.

The applicable Indian statutory income tax rate for the year ended 31^st March 2024 was 34.944% and for the year ended 31^st March 2023 was 34.944%.

Taxation Laws (Amendment) Act, 2019 enacted on December 11, 2019 amends the Income Tax Act, 1961 to provide domestic companies an option for lower tax rates. The Company has not opted for the lower tax rate and continues to follow old tax rate which were existing prior to the above said amendment in making provision of its tax liability for the financial year.

The fair value of unquoted equity securities designated as fair value through other comprehensive income is determined using Level 3 inputs like earnings, earning multiples etc. Significant unobservable inputs comprise long term growth rates, market conditions of the specific industry etc. However, the changes in the fair values due to changes in unobservable inputs will not be material to the financial statements.

Note 39: Capital management

The Company’s objectives when managing capital are to safeguard its ability to continue as a going concern, so that it can continue to provide returns for shareholders and benefits for other stakeholders and maintain an optimal capital structure to reduce the cost of capital, while protecting and strengthening the balance sheet through the appropriate balance of debt and equity funding.

The Company manages its capital structure and makes adjustments in light of changes in economic conditions and the requirements of the financial covenants. In order to maintain or adjust the capital structure, the Company may adjust the amount of dividends paid to shareholders, return of capital to shareholders, issue new shares or sell assets to reduce debt.

The Company’s policy is to maintain a stable and strong capital structure with a focus on total equity so as to maintain investors, creditors and market confidence and to sustain future development and growth of its business. The Company will take appropriate steps in order to maintain, or if necessary adjust, its capital structure. The Company is not subject to any externally imposed capital requirements. Management monitors the return on capital, as well as the level of dividends to ordinary shareholders.

Note 40: Financial risk management

The Company’s activities expose it to credit risk, liquidity risk and market risk (i.e. foreign currency risk, interest rate risk and price risk).

Risk management framework

The Company’s Board of Directors has overall responsibility for the establishment and oversight of the Company’s risk management framework. The Board of Directors has established the risk management committee, which is responsible for developing and monitoring the Company’s risk management policies. The committee reports regularly to the Board of Directors on its activities. The Board of Directors also review these risks and related risk management policy.

The Company’s risk management policies are established to identify and analyse the risks faced by the Company, to set appropriate risk limits and controls and to monitor risks and adherence to limits. Risk management policies and systems are reviewed regularly to reflect changes in market conditions and the Company’s activities. The Company, through its training and management standards and procedures, aims to maintain a disciplined and constructive control environment in which all employees understand their roles and obligations.

The audit committee oversees how management monitors compliance with the Company’s risk management policies and procedures and reviews the adequacy of the risk management framework in relation to the risks faced by the Company. The audit committee is assisted in its oversight role by internal audit. Internal audit undertakes both regular and ad hoc reviews of risk management controls and procedures, the results of which are reported to the audit committee.

This note explains the sources of risk which the entity is exposed to and how the entity manages the risk and the impact of it in the financial statements.

The Company takes on exposure to credit risk, which is the risk that counterparty will default on its contractual obligations resulting in financial loss to the Company. The maximum exposure to credit risk at the reporting date is the carrying value of each class of financial assets disclosed in note 38. The Company is exposed to credit risk from its operating activities (primarily trade receivables).

(i) Trade and other receivables

Customer credit risk is managed by the Company through established policy and procedures and control relating to customer credit risk management. Trade receivables are non-interest bearing and are generally carrying up to 10 days credit terms. The Company has a detailed review mechanism of overdue customer receivables at various levels within organisation to ensure proper attention and focus for realisation. Trade receivables are consisting of a large number of customers. Where credit risk is high, domestic trade receivables are backed by security deposits. Export receivables are backed by letters of credit.

(ii) Other financial assets and deposits

Credit risk from balances with banks, deposits, loan to employees, other financial assets etc is managed by the Company’s finance department. Investments of surplus funds are made only with approved counterparties in accordance with the Company’s policy. None of the Company’s cash equivalents with banks, deposits, investments and other receivables were past due or impaired as at 31^st March 2024 and 31^st March 2023 (except as mentioned below).

The Company’s historical experience of collecting receivables and the level of default indicate that credit risk is low and generally uniform across markets. All overdue customer balances are evaluated taking into account the age of the dues, specific credit circumstances, the track record of the counterparty etc. The Company uses judgement in making these assumptions based on the Company’s past history, existing market condition as well as forward looking estimates at the end of each reporting period. The impairment provision as disclosed above are based on assumptions about risk of default and expected loss rates. Loss allowances and impairment is recognised, where considered appropriate by responsible management. Expected credit loss measured on loan to employees and other financial assets is not significant.

(B) Liquidity risk

Liquidity risk is the risk that an entity will encounter difficulty in meeting obligations associated with financial liabilities that are settled by delivering cash or another financial asset. 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.

Management monitors rolling forecasts of the Company’s liquidity position and cash and cash equivalents on the basis of expected cash flows. This is generally performed in accordance with practice and limits set by the Company.

Maturities of financial liabilities

The tables below analyse the Company’s financial liabilities into relevant maturity groupings based on their contractual maturities.

The following table shows the maturity analysis of the Company’s financial liabilities based on contractually agreed undiscounted cash flows along with its carrying value as at the Balance Sheet date.

Market risk is the risk that the fair value of future on cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk comprises three types of risk: currency risk, interest risk and other price risk, such as commodity price risk and securities price risk. Financial instruments affected by market risk include borrowings, investments, trade payables, trade receivables, etc.

(i) Foreign currency risk

The Company deals with foreign trade payables , trade receivables etc. and is therefore exposed to foreign exchange risk associated with exchange rate movement.

Foreign currency risk is the risk that the fair value or future cash flows of an exposure will fluctuate because of changes in foreign exchange rates. The Company’s exposure to the risk of changes in foreign exchange rates relates primarily to the Company’s operating activities. Such foreign currency exposures are not hedged by the Company. Foreign currency exchange rate exposure is partly balanced by purchasing of goods, commodities and services in the respective currencies. The Company has a treasury department which monitors the foreign exchange fluctuations on the continuous basis and advises the management of any material adverse effect on the Company.

(ii) Interest rate risk

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The Company’s exposure to the risk of changes in market interest rates relates primarily to the Company’s debt obligations with floating interest rates.

The Company’s main interest rate risk arises from borrowings with variable rates, which expose the Company to cash flow interest rate risk. During 31^st March 2024 and 31^st March 2023, the Company’s borrowings at variable rate were mainly denominated in Rupees.

The Company’s fixed rate borrowings and deposits with banks are carried at amortised cost. They are therefore not subject to interest rate risk as defined in Ind AS 107, since neither the carrying amount nor the future cash flows will fluctuate because of a change in market interest rates.

(iii) Securities price risk

Securities price risk is the risk that the fair value of a financial instrument will fluctuate due to changes in market prices. The Company’s exposure to securities price risk arises from investments in equity instruments held by the Company and classified in the balance sheet at fair value through other comprehensive income. To manage its price risk arising from investments in equity securities, the Company does regular monitoring of security prices.

(iv) Commodities price risk

The Company has in place policies to manage the Company’s exposure to fluctuation in the prices of the key materials and commodities used in the operations. Nevertheless, it believes that it has competitive advantage in terms of quality products and by continually upgrading its expertise and range of products to meet the needs of its customers. Commodities price risk exposure is evaluated and managed through operating procedures and sourcing policies. The management does not consider the Company’s exposure to commodities price risk significant as on 31^st March 2024.

B. Measurement of fair values

This section explains the judgements and estimates made in determining the fair values of the biological assets other than bearer plants that are recognised and measured at fair value in the financial statements. To provide an indication about the reliability of the inputs used in determining fair value, the Company has classified its biological assets other than bearer plants into level 2 in the fair value hierarchy, since no significant adjustments need to be made to the prices obtained from the local markets.

Biological assets classified into level 3 is valued using discounted cash flows technique. The valuation model considers the present value of the expected assets value to be generated by the plantation. These projections include specific estimates for period of plantation upto 5 years. The expected net cash flows are discounted using a risk- adjusted discount rate. There were no transfers between any levels during the year.

1. The remuneration to the key managerial personnel does not include the provisions made for gratuity and leave benefits, as they are determined on an actuarial basis for the Company as a whole.

2. The total managerial remuneration paid/payable to Managing Director of the Company, has exceeded the prescribed limits under Section 197 read with Schedule V to the Companies Act, 2013. The Company has obtained necessary shareholder approvals through a special resolution in annual general meeting as required under the relevant provisions of the Companies Act, 2013.

g. Terms and conditions of transactions with related parties

Transactions relating to dividend were on the same terms and conditions that applied to other shareholders. The transactions with related parties are made at arm''s length and in the ordinary course of business. Outstanding balances at the year-end are unsecured and interest free and settlement occurs in cash. No provisions are held against receivables from related parties. There are no loans outstanding with related parties.

Note 45: Employee benefits

(i) Compensated absences

The Company provides for accumulation of leave by certain categories of its employees. These employees can carry forward a portion of the unutilised leave balances and utilise it in future periods or receive cash in lieu thereof as per the Company’s policy. The Company records a provision for leave obligations in the period in which the employees render the services that increases this entitlement.

The total provision recorded by the Company towards this obligation was Rs. 576.96 lacs (31^st March 2023: Rs. 598.59 lacs). The amount of the provision is presented as current, since the Company does not have an unconditional right to defer settlement for any of these obligations.

(ii) Post-employment defined benefit plan Gratuity

The Company provides for gratuity, a defined benefit retirement plan covering eligible employees. Every employee is entitled to a benefit equivalent to fifteen days salary last drawn for each completed year of service on terms not less favourable than the provisions of the Payment of Gratuity Act, 1972. The same is payable at the time of separation from the Company or retirement, whichever is earlier. The benefits vest after five years of continuous service. The gratuity plan is administered and managed by the Trustees who are responsible for the overall governance of the plan and to act in accordance with the provisions of the trust deeds and rules in the best interests of the plan participants.

The above sensitivity analyses are based on a change in an assumption while holding all other assumptions constant. In practice, this is unlikely to occur, and changes in some of the assumptions may be correlated. When calculating the sensitivity of the defined benefit obligation to significant actuarial assumptions, the same method (present value of the defined benefit obligation calculated with the projected unit credit method at the end of the reporting period) has been applied as when calculating the defined benefit obligation recognised in the Balance Sheet. Also, there is no significant impact of withdrawal rates and hence not considered for sensitivity.

The methods and types of assumptions used in preparing the sensitivity analysis did not change compared to the prior period.

(g) The major categories of plan assets

The defined benefit plans are funded with insurance companies of India.

(h) Defined benefit liability and employer contributions

Expected contributions to post-employment benefit plans in the next twelve months are Rs 300.00 lacs (31^st March 2023 - Rs. 425.00 lacs).

The weighted average duration of the defined benefit obligation is 6.2 years (31^st March, 2023 - 5.8 years). The expected maturity analysis of undiscounted gratuity benefits is as follows:

(i) Risk exposure

Through its defined benefit plans the Company is exposed to a number of risks, the most significant of which are detailed below:

Investment risk:

The defined benefit plans are funded with insurance companies of India. The Company does not have any liberty to manage the funds provided to insurance companies. The present value of the defined benefit plan liability is calculated using a discount rate determined by reference to the Government of India bonds. If the return on plan asset is below this rate, it will create a plan deficit.

Discount rate risk:

The Company is exposed to the risk of fall in discount rate. A fall in discount rate will eventually increase the ultimate cost of providing the above benefit thereby increasing the value of the liability.

Demographic risk:

In the valuation of the liability, certain demographic (mortality and attrition rates) assumptions are made. The Company is exposed to this risk to the extent of actual experience eventually being worse compared to the assumptions thereby causing an increase in the benefit cost.

Salary growth risk

The present value of the defined benefit plan liability is calculated by reference to the future salaries of plan participants. An increase in the salary of the plan participants will increase the plan liability.

(iv) Provident fund

(a) Provident fund for certain eligible employees is managed by the Company through the “Birla Industries Provident Fund”, in line with the Provident Fund and Miscellaneous Provisions Act, 1952. The plan guarantees interest at the rate notified by the Provident Fund Authorities. The contribution by the employer and employee together with the interest accumulated thereon are payable to employees at the time of their separation from the Company or retirement, whichever is earlier. The benefits vest immediately on rendering of the services by the employee.

The Company has an obligation to fund any shortfall on the yield of the trust’s investments over the administered interest rates on an annual basis. Actual return earned by the Company has been higher in the past years. The actuary has provided a valuation for provident fund liabilities on the basis of guidance issued by Actuarial Society of India and there is no shortfall as at year-end. Return on plan asset and discount rate, as considered by the actuary, were 8.15 % (31^st March 2023: 8.15%) and 7.00 % (31^st March 2023: 7.20%) respectively.

The Company contributed Rs. 574.33 lacs and Rs. 266.09 lacs during the year ended 31^st March 2024 and 31^st March 2023 respectively to the above Provident Fund.

(b) Further the Company is also contributing to the provident fund administered by Government of India for some of the employees as per regulations. The Company contributed Rs. 235.87 lacs and Rs.202.43 lacs during the year ended 31^st March 2024 and 31^st March 2023 respectively towards above defined contribution plan.

(v) Superannuation fund

The Company operates a superannuation fund scheme with Life Insurance Corporation of India (LIC) for eligible employees for some of its employees towards which the Company contributes up to a maximum of 15% of the employees’ basic salary, which is charged to the Statement of Profit and Loss.

The Company contributed Rs.17.22 lacs and 23.48 lacs during the year ended 31^st March 2024 and 31^st March 2023 respectively towards above defined contribution plan of the Company.

The average market value of the company’s shares for the purpose of calculating the dilutive effect of shares options was based on quoted market price for the year during which the options were outstanding.

Note 47: Capital and other commitments

Estimated amount of contracts remaining to be executed on capital account and not provided for (net of advances) Rs. 4,828.57 lacs (31^st March 2023: Rs. 5,894.81 lacs).

Note 48: Contingent liabilities
Particulars	As at	As at
	31st March 2024	31st March 2023
a) Demands/claims not acknowledged as debts and contested by the Company: (*) Excise duty	1,252.83	1,546.99
Sales tax	530.87	586.33
Water tax (includes Rs. 214,759.86 lacs as mentioned in note (c) below)	2,71,434.60	2,13,632.78
Cess on captive power consumption	21,811.44	18,235.80
Krishi Upaj Mandi fees	1,229.51	1,229.51
Others (includes Rs.2,407.00 lacs as mentioned in note (d) below)	5,620.04	5,478.64
	3,01,879.29	2,40,710.05

(*) Based on discussions with the solicitors/ favourable decisions in similar cases/legal opinions taken by the Company, the Company has reviewed all its pending litigations and proceedings and has adequately provided for where provisions are required and disclosed as contingent liabilities where applicable, in its financial statements. The Company does not expect the outcome of these proceedings to have a materially adverse effect on its financial statements. The company does not expect the impact, if any, to be material.

b) Outstanding claims from employees not acknowledged as debts, including Bonus

claims under adjudication and wages for suspension period at Brajrajnagar Unit. Amount unascertainable

c) In October 1963, the paper division of the Company had applied to the Public Work Department (Irrigation) of the Madhya Pradesh State Government for drawing water without any charge from Sone River up to 1165 Million Cubic Feet (MCF) with the provision for increase up to 2500 MCF on full development of paper mill, the permission for which was granted by the State Government. In August 2000, the Madhya Pradesh State Government issued a notification and decided to levy charges on water consumption from river resources for industrial purposes with retrospective effect from June, 1998, the constitutional validity of which was challenged by the Company by way of a writ petition in the High Court of Madhya Pradesh. During the pendency of the said writ petition, the Water Resource Department (WRD) of the State Government started raising the bill for consumption of water on the basis of assumption of total quantum of water allowed to be drawn by the Company at 2500 MCF whereas, as per the Company, the quantum of water allowed to be drawn was 1165 MCF and the Company had never drawn the water even up to the initial quantity of 1165 MCF since it had not attained full development of the paper mill. One of the major reasons for not being able to achieve full development was frequent and perennial shortage of water. Based on an interim order passed by the Madhya Pradesh High Court in the aforesaid writ petition, the Company started paying water charges based on actual consumption of water (less than 1165 MCF), while the WRD of the State Government continued to raise bills on the basis of assumed consumption of 2500 MCF plus interest and penalty thereon. In January 2009, the High Court of Madhya Pradesh upheld the constitutional validity of August 2000 notification. After the aforesaid judgement, the Company paid Rs 908.47 lacs being the difference amount between the assumed quantity of 1165 MCF and the actual consumption, while the WRD of the State Government continued to raise the bills on the basis of assumed quantity of water consumption of 2500 MCF till April 2009, when the Company entered into a new agreement with the WRD of the State Government for water consumption of only 440 MCF effective from May 2009. The total balance demand for the aforesaid period amounts to Rs 2,14,759.86 lacs (31^st March 2023: Rs 1,69,002.71 lacs) [including interest and penalty of Rs 2,13,346.31 lacs (31^st March 2023: Rs 1,67,589.16 lacs)] as at 31^st March 2024, for which no provision has been made in the books. The WRD of the State Government issued a notice for recovery of aforesaid demand in February 2015, against which the Company filed a writ petition in the Madhya Pradesh High Court and obtained an interim stay on the recovery. Also, Madhya Pradesh High Court has set aside demand for penal interest in a similar case for another Company.

On 11 July 2020, the WRD has given a letter asking for consent on their offer of one-time settlement at Rs 7,915 lacs and withdrawal of Writ petition from the High Court for which the Company has not given any consent. The Company has been legally advised that it has a fit case for quashing the present demand.

d) (i) The Company’s Paper plant and Caustic Soda plant at Amlai were having individual factory license till 2011.

The Company had applied for common factory license for both the plants enabling to supply Power to Caustic Soda plant from Paper plant. Simultaneously, it had filed a petition with Madhya Pradesh Electricity Regulatory Commission (MPERC) for direction on the action if common factory license was granted. On 11^th May, 2012 the MPERC has directed Company to keep any one connection and surrender the other one. Accordingly, the Company had surrendered its Paper plant connection keeping the Caustic Soda plant connection. However, the Madhya Pradesh Poorv Khestra Vidyut Vitran Company Limited (MPPKVVCL) has interpreted the order otherwise and had considered the connection which was retained by Company as unauthorized one. They had issued final order dated 16-06-2012 under Section 126 (3) of Electricity Act 2003 levying Rs 1,287 lacs as electricity charges from 17-04-2012 (Date of issuance of Common Factory license) applying penal rate. The Company had filed an application with MPERC for clarification on direction dated 11^th May 2012. The MPERC vide its order dated 4-08-2012 held that it has given option to the Company to keep any one of the two connection surrendering the second one. They had written in their Order that the order of the MPERC dated 11-05-2012 has been completely mis construed by the MPPKVVCL and by a convoluted logic raised claim of unauthorized use of electricity. They had directed respondent to regularize the connection per Company’s application and submit compliance within a month. The MPPKVVCL has signed a supplementary HT agreement dated 09-11-2012 effective from 17-042012 regularizing the connections as per direction of the Commission. However,the Company has filed an appeal with Appellate Authority District Shahdol for quashing the order dated 16-06-2012 of MPPKVVCL citing (i) Clarification order of MPERC dated 04-08-2012 and (ii) subsequently regularization of connection by MPPKVVCL by signing supplementary HT Agreement.

(ii) Similarly, on 21-12-2011, a vigilance team of MPPKVVCL visited its Paper plant at Amlai for inspection of the usages of Power supplied by them. During their visit, they had observed that Company was erecting a captive Power plant and operating from time to time water pumps for drawing water from river Sone for its factory use. They had considered these uses as unauthorized load of 850 KvA from Power supplied by MPPKVVCL and issued a final order dated 21-08-2012 assessing a demand of Rs 155 lacs. The Company had filed an appeal against this

order with the Appellate Authority District Shahdol for quashing the order citing that (i) it is used for production of Paper for which connection was granted, (ii) that the power used for the alleged activity is from its own power generating plant.

However, the Appellate authority has decided both the cases against the Company vide its orders dated 29-112019 and the Company has received demand letter No AA/SS/06/HT/1368 dated 09-12-2019 demanding Rs. 2,172 lacs. against order in case No 02/12-13 and Rs 235 lacs against order in case No 03/12-13 for unauthorized use of power making total demand of Rs 2,407 lacs.

The Company has filed an appeal in MP High Court against both the orders vide WP No 28342/ 2019 and WP No 28354 / 2019 and requested for relief against the demand. The Hon’ble MP High Court vide its order dated 21.01.2020 had passed an interim order in favour of the Company thereby restraining the respondents from taking any further coercive action against the Company. Matters are still at the stage of completion of pleadings because the respondents have not yet submitted any replies or affidavits in the case. Further, the Company has been legally advised by its lawyer that these cases are fit cases for quashing the present demand, therefore, has not provided any liability in its books of accounts.

e) During the year, the Company has received show cause notice / order for resumption of certain leasehold land. Based on legal advise, the Company has taken necessary steps to challenge the same and it does not expect the outcome of these proceedings / show cause to have a material effect on its financial statements.

f) In respect of above contingent liabilities, it is not practicable for the Company to estimate the timings of cash outflows, if any, pending resolution of the respective proceedings. The Company does not expect any reimbursements in respect of above.

Note 51:

The Company has not made any investments during the year. The Company did not stood guarantee, or provided security to any company / Firm / Limited Liability Partnership/ Other Party. The Company has not granted secured/ unsecured loans/ advances in nature of loans to any Company / Firm / Limited Liability Partnership / Other Party during the year other than loan to employees.

Expense arising from share based payment transactions

Total expenses arising from share-based payment transactions recognised in Statement of Profit and Loss as part of employee benefit expenses is Rs 28.54 lacs. Refer Note 32

Note 53:

No funds have been advanced or loaned or invested (either from borrowed funds or share premium or any other sources or kind of funds) by the Company to or in any other person(s) or entity(ies), including foreign entities (“Intermediaries”) with the understanding, whether recorded in writing or otherwise, that the Intermediary shall lend or invest in party identified by or on behalf of the Company (Ultimate Beneficiaries). The Company has not received any fund from any party(s) (Funding Party) with the understanding that the Company shall whether, directly or indirectly lend or invest in other persons or entities identified by or on behalf of the funding party (“Ultimate Beneficiaries”) or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

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Mar 31, 2023

2.18 Provisions and contingencies

Provisions are recognised when the Company has a present legal or constructive obligation as a result of past events, it is probable that an outflow of resources will be required to settle the obligation and the amount can be reliably estimated. Provisions are not recognised for future operating losses.

Provisions are measured at the present value of management''s best estimate of the expenditure required to settle the present obligation at the end of the reporting period. The discount rate used to determine the present value is a pre-tax rate that reflects current market assessments of the time value of money and the risks specific to the liability. The unwinding of the discount is recognised as finance cost.

A disclosure for contingent liabilities is made 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 embodying economic benefits will be required to settle or a reliable

estimate of the amount cannot be made. The Company does not recognize a contingent liability but discloses its existence in the financial statements.

Contingent asset is not recognised in financial statements since this may result in the recognition of income that may never be realised. However, when the realisation of income is virtually certain, then the related asset is not a contingent asset and is recognized.

Provisions, contingent liabilities and contingent assets are reviewed at each Balance Sheet date.

2.19 Earnings per share

Earnings per share is calculated by dividing the net profit or loss before OCI for the year by the weighted average number of equity shares outstanding during the year. For the purpose of calculating diluted earnings per share, the net profit or loss before OCI for the period attributable to equity shareholders and the weighted average number of shares outstanding during the period are adjusted for the effects of all dilutive potential equity shares.

2.20 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, including revenues and expenses that relate to transactions with any of the Company''s other components, and for which discrete financial information is available. Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating decision maker.

The chief operating decision maker is responsible for allocating resources and assessing performance of the operating segments and has been identified as the Managing Director & CEO of the Company. Refer Note 43 for segment information presented.

2.21 Standards issued but not yet effective

Ministry of Corporate Affairs ("MCA") notifies new standard or amendments to the existing standards under Companies (Indian Accounting Standards) Rules as issued from time to time. On 31^st March, 2023, MCA amended the Companies (Indian Accounting Standards)

Rules, 2015 by issuing the Companies (Indian Accounting Standards) Amendment Rules, 2023, applicable from 1^st April, 2023, as below. Other amendments included in the notification does not have any significant impact on the financial statements.

Ind AS 1 Presentation of Financial Statements

The amendments require companies to disclose their material accounting policies rather than their significant accounting policies. Accounting policy information, together with other information, is material when it can reasonably be expected to influence decisions of primary users of general purpose financial statements. The Company does not expect this amendment to have any significant impact in its financial statements.

Ind AS 8 Accounting Policies, Changes in Accounting Estimates and Errors

The amendments will help entities to distinguish between accounting policies and accounting estimates. The definition of a change in accounting estimates has been replaced with a definition of accounting estimates. Under the new definition, accounting estimates are "monetary amounts in financial statements that are subject to measurement uncertainty". Entities develop accounting estimates if accounting policies require items in financial statements to be measured in a way that involves measurement uncertainty.

Ind AS 12 Income Taxes

The amendments clarify how companies account for deferred tax on transactions such as leases and decommissioning obligations. The amendments narrowed the scope of the recognition exemption in paragraphs 15 and 24 of Ind AS 12 (recognition exemption) so that it no longer applies to transactions that, on initial recognition, give rise to equal taxable and deductible temporary differences. The Company does not expect this amendment to have any significant impact in its financial statements.

The Company does not expect the effect of this on the financial statements to be material, based on preliminary evaluation.

NOTE 19: BORROWINGS (CONTD.)

(a) Term loan of '' 6750.00 lacs (31^st March, 2022: '' 7500 lacs) from a bank is secured by way of first pari-passu charge on entire fixed assets of Company at Amlai & Brajrajnagar and carries interest @ 8.80% p.a. (31^st March, 2022: @ 6.55% )and is repayable in 20 equal quarterly instalments starting from 31^st December 2022 up to 14^th September 2027.

(b) Term loan of '' 3750.00 lacs (31^st March, 2022: '' 4750.00 lacs) from a bank is secured by way of first pari-passu charge on all movable and immovable fixed assets (including land and building) of the Company (present and future) located at Amlai, Madhya Pradesh and Brajrajnagar, Odisha and carries interest @ 9.33% p.a. (31^st March, 2022: @ 7.25% ) and is repayable in 20 equal quarterly instalments starting from 26^th February 2022 up to 26^th November 2026.

During the previous year, the Company could not comply with debt covenants regarding maintainability of minimum Interest Coverage ratio of 2 (Interest Coverage is defined as EBIDTA/Interest Cost). Since the Company is having a negative EBIDTA for the year ended 31 March, 2022, the said covenant has not been complied with. Hence, in accordance with the paragraph 74 of Ind AS 1 ''Presentation of Financial Statements'', same has been classified under current borrowing as on 31 March, 2022."

(c) Term loan of '' 7500.00 lacs from a bank is secured by way of first pari-passu charge over the immovable fixed assets and movable fixed assets of the Company situated at Amlai, Madhya Pradesh (manufacturing unit) and at Brajrajnagar, Odisha and carries interest from@ 8.05% p.a.to 8.40% p.a. and is repayable in 20 equal quarterly instalments starting from 19^th October 2023 up to 19^th July 2028.

(d) Cash credit / working capital demand loans from banks includes security against hypothecation of stock-in-trade, work- inprogress, raw materials, stores and spares, book debts and other current assets of the Company and second charge on fixed assets of the Company and are repayable on demand / at the end of the term of WCDL. The above loans carry interest @ 7.80 % p.a. to 10.05 % p.a. (31^st March, 2022: 5.00% p.a. to 8.70% p.a. ).

(e) Short term loan of '' 5,000.00 lacs from others is secured by way of pledge of certain investments held by the Company, carries interest @ 9.50 % p.a.(31^st March, 2022: 7.75% p.a.) and is repayable on 26^th March, 2024.

(f) Refer note 40 for information about liquidity risk and market risk on borrowings.

(g) The borrowings obtained by the Company from banks have been applied for the purposes for which such loans were was taken.

(C) Market risk

Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk comprises three types of risk: currency risk, interest risk and other price risk, such as commodity price risk and securities price risk. Financial instruments affected by market risk include borrowings, investments, trade payables, trade receivables, etc.

(i) Foreign currency risk

The Company deals with foreign trade payables , trade receivables etc. and is therefore exposed to foreign exchange risk associated with exchange rate movement.

Foreign currency risk is the risk that the fair value or future cash flows of an exposure will fluctuate because of changes in foreign exchange rates. The Company''s exposure to the risk of changes in foreign exchange rates relates primarily to the Company''s operating activities. Such foreign currency exposures are not hedged by the Company. Foreign currency exchange rate exposure is partly balanced by purchasing of goods, commodities and services in the respective currencies. The Company has a treasury department which monitors the foreign exchange fluctuations on the continuous basis and advises the management of any material adverse effect on the Company.

Foreign currency risk exposure

The Company''s exposure to foreign currency risk at the end of the reporting period expressed in Rupees lacs, are as follows:-

(i) Risk exposure

Through its defined benefit plans the Company is exposed to a number of risks, the most significant of which are detailed below:

Investment risk:

The defined benefit plans are funded with insurance companies of India. The Company does not have any liberty to manage the funds provided to insurance companies. The present value of the defined benefit plan liability is calculated using a discount rate determined by reference to the Government of India bonds. If the return on plan asset is below this rate, it will create a plan deficit.

Discount rate risk:

The Company is exposed to the risk of fall in discount rate. A fall in discount rate will eventually increase the ultimate cost of providing the above benefit thereby increasing the value of the liability.

Demographic risk:

In the valuation of the liability, certain demographic (mortality and attrition rates) assumptions are made. The Company is exposed to this risk to the extent of actual experience eventually being worse compared to the assumptions thereby causing an increase in the benefit cost.

Salary growth risk

The present value of the defined benefit plan liability is calculated by reference to the future salaries of plan participants. An increase in the salary of the plan participants will increase the plan liability.

(iv) Provident fund

(a) Provident fund for certain eligible employees is managed by the Company through the "Birla Industries Provident Fund", in line with the Provident Fund and Miscellaneous Provisions Act, 1952. The plan guarantees interest at the rate notified by the Provident Fund Authorities. The contribution by the employer and employee together with the interest accumulated thereon are payable to employees at the time of their separation from the Company or retirement, whichever is earlier. The benefits vest immediately on rendering of the services by the employee. The Company has an obligation to fund any shortfall on the yield of the trust''s investments over the administered interest rates on an annual basis. Actual return earned by the Company has been higher in the past years. The actuary has provided a valuation for provident fund liabilities on the basis of guidance issued by Actuarial Society of India and there is no shortfall as at year-end. Return on plan asset and discount rate, as considered by the actuary, were 8.15 % (31^st March, 2022: 8.00%) and 7.20 % (31^st March, 2022: 6.40%) respectively.

in its financial statements. The Company does not expect the outcome of these proceedings to have a materially adverse effect on its financial statements.

The company does not expect the impact, if any, to be material.

b) Outstanding claims from employees not acknowledged as debts, including Bonus claims

under adjudication and wages for suspension period at Brajrajnagar Unit. Amount unascertainable

c) In October 1963, the paper division of the Company had applied to the Public Work Department (Irrigation) of the Madhya Pradesh State Government for drawing water without any charge from Sone River up to 1165 Million Cubic Feet (MCF) with the provision for increase up to 2500 MCF on full development of paper mill, the permission for which was granted by the State Government. In August 2000, the Madhya Pradesh State Government issued a notification and decided to levy charges on water consumption from river resources for industrial purposes with retrospective effect from June, 1998, the constitutional validity of which was challenged by the Company by way of a writ petition in the High Court of Madhya Pradesh. During the pendency of the said writ petition, the Water Resource Department (WRD) of the State Government started raising the bill for consumption of water on the basis of assumption of total quantum of water allowed to be drawn by the Company at 2500 MCF whereas, as per the Company, the quantum of water allowed to be drawn was 1165 MCF and the Company had never drawn the water even up to the initial quantity of 1165 MCF since it had not attained full development of the paper mill. One of the major reasons for not being able to achieve full development was frequent and perennial shortage of water. Based on an interim order passed by the Madhya Pradesh High Court in the aforesaid writ petition, the Company started paying water charges based on actual consumption of water (less than 1165 MCF), while the WRD of the State Government continued to raise bills on the basis of assumed consumption of 2500 MCF plus interest and penalty thereon. In January 2009, the High Court of Madhya Pradesh upheld the constitutional validity of August 2000 notification. After the aforesaid judgement, the Company paid Rs 908.47 lacs being the difference amount between the assumed quantity of 1165 MCF and the actual consumption, while the WRD of the State Government continued to raise the bills on the basis of assumed quantity of water consumption of 2500 MCF till April 2009, when the Company entered into a new agreement with the WRD of the State Government for water consumption of only 440 MCF effective from May 2009. The total balance demand for the aforesaid period amounts to Rs 1,69,002.08 lacs (31^st March, 2022: Rs 1,42,705.64 lacs) [including interest and penalty of Rs 167,589.16 lacs (31^st March, 2022: Rs 1,41,292.71 lacs)] as at 31^st March, 2023, for which no provision has been made in the books. The WRD of the State Government issued a notice for recovery of aforesaid demand in February 2015, against which the Company filed a writ petition in the Madhya Pradesh High Court and obtained an interim stay on the recovery. Also, Madhya Pradesh High Court has set aside demand for penal interest in a similar case for another Company.

On 11 July 2020, the WRD has given a letter asking for consent on their offer of one-time settlement at Rs 7,915 lacs and withdrawal of Writ petition from the High Court for which the Company has not given any consent. The Company has been legally advised that it has a fit case for quashing the present demand."

d) (i) The Company''s Paper plant and Caustic Soda plant at Amlai were having individual factory license till 2011. The

Company had applied for common factory license for both the plants enabling to supply Power to Caustic Soda plant from Paper plant. Simultaneously, it had filed a petition with Madhya Pradesh Electricity Regulatory Commission (MPERC) for direction on the action if common factory license was granted. On 11^th May, 2012 the MPERC has directed Company to keep any one connection and surrender the other one. Accordingly, the Company had surrendered its Paper plant connection keeping the Caustic Soda plant connection. However, the Madhya Pradesh Poorv Khestra Vidyut Vitran Company Limited (MPPKVVCL) has interpreted the order otherwise and had considered the connection which was retained by Company as unauthorized one. They had issued final order dated 16-06-2012 under Section 126 (3) of Electricity Act 2003 levying Rs 1,287 lacs as electricity charges from 17-04-2012 (Date of issuance of Common Factory license) applying penal rate. The Company had filed an application with MPERC for clarification on direction dated 11^th May 2012. The MPERC vide its order dated 4-08-2012 held that it has given option to the Company to keep any one of the two connection surrendering the second one. They had written in their Order that the order of the MPERC dated 11-05-2012 has been completely misconstrued by the MPPKVVCL and by a convoluted logic raised claim of unauthorized use of electricity. They had directed respondent to regularize the connection per Company''s application and submit compliance within a month. The MPPKVVCL has signed a supplementary HT agreement dated 09-11-2012 effective from 17-04-2012 regularizing the connections as per direction of the Commission. However,the Company has filed an appeal with Appellate Authority District Shahdol for quashing the order dated 16-06-2012 of MPPKVVCL citing (i) Clarification order of MPERC dated 04-08-2012 and (ii) subsequently regularization of connection by MPPKVVCL by signing supplementary HT Agreement.

(ii) Similarly, on 21-12-2011, a vigilance team of MPPKVVCL visited its Paper plant at Amlai for inspection of the usages of Power supplied by them. During their visit, they had observed that Company was erecting a captive Power plant and operating from time to time water pumps for drawing water from river Sone for its factory use. They had considered these uses as unauthorized load of 850 KvA from Power supplied by MPPKVVCL and issued a final order dated 2108-2012 assessing a demand of Rs 155 lacs. The Company had filed an appeal against this order with the Appellate Authority District Shahdol for quashing the order citing that (i) it is used for production of Paper for which connection was granted, (ii) that the power used for the alleged activity is from its own power generating plant.

However, the Appellate authority has decided both the cases against the Company vide its orders dated 29-11-2019 and the Company has received demand letter No AA/SS/06/HT/1368 dated 09-12-2019 demanding '' 2,172 lacs. against order in case No 02/12-13 and Rs 235 lacs against order in case No 03/12-13 for unauthorized use of power making total demand of Rs 2,407 lacs.

The Company has filed an appeal in MP High Court against both the orders vide WP No 28342/ 2019 and WP No 28354 / 2019 and requested for relief against the demand. The Hon''ble MP High Court vide its order dated 21.01.2020 had passed an interim order in favour of the Company thereby restraining the respondents from taking any further coercive action against the Company. Matters are still at the stage of completion of pleadings because the respondents have not yet submitted any replies or affidavits in the case. Further, the Company has been legally advised by its lawyer that these cases are fit cases for quashing the present demand, therefore, has not provided any liability in its books of accounts.

NOTE 54:

No funds have been advanced or loaned or invested (either from borrowed funds or share premium or any other sources or kind of funds) by the Company to or in any other person(s) or entity(ies), including foreign entities ("Intermediaries") with the understanding, whether recorded in writing or otherwise, that the Intermediary shall lend or invest in party identified by or on behalf of the Company (Ultimate Beneficiaries). The Company has not received any fund from any party(s) (Funding Party) with the understanding that the Company shall whether, directly or indirectly lend or invest in other persons or entities identified by or on behalf of the funding party ("Ultimate Beneficiaries") or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

NOTE 55:

The financial statements of the previous year were audited by a firm of chartered accountants other than B S R & Co. LLP.

As per our report of even date. For and on behalf of the Board of Directors of

For B S R & Co. LLP Orient Paper & Industries Limited

Chartered Accountants CIN No. L21011OR1936PLC000117

Firm Registration Number: 101248W/W-100022

C.K.Birla Ashwin J. Laddha

Chairman Managing Director & CEO

(DIN 00118473) (DIN 09538310)

Place : New Delhi Place : New Delhi

Jayanta Mukhopadhyay P.K.Sonthalia R.P.Dutta

Partner President Finance & CFO Company Secretary

Membership No.: 055757 (PAN ALQPS6822D) (M.NO. A14337)

Place: Kolkata Place : New Delhi Place : New Delhi

Date: 18 May 2023 Date: 18 May 2023

---

Mar 31, 2019

Note 1: Capital management (a) Risk management

The Company''s objectives when managing capital are to:

- safeguard its ability to continue as a going concern, so that it can continue to provide returns for shareholders and benefits for other stakeholders, and

- maintain an optimal capital structure to reduce the cost of capital.

In order to maintain or adjust the capital structure, the Company may adjust the amount of dividends paid to shareholders, return of capital to shareholders, issue new shares or sell assets to reduce debt.

The Company''s policy is to maintain a stable and strong capital structure with a focus on total equity so as to maintain investors, creditors and market confidence and to sustain future development and growth of its business. The Company will take appropriate steps in order to maintain, or if necessary adjust, its capital structure. The Company is not subject to any externally imposed capital requirements.

The following table summarizes the capital of the Company:

No changes were made to the objectives, policies or processes for managing capital during the years ended 31st March 2019 and 31st March 2018.

Loan covenants:

Under the terms of the major borrowing facilities, the Company is required to comply with certain financial covenants. The Company has complied with the debt covenants throughout the reporting period.

Note 2: Financial risk management

The Company''s activities expose it to credit risk, liquidity risk and market risk (i.e. foreign currency risk, interest rate risk and price risk).

This note explains the sources of risk which the entity is exposed to and how the entity manages the risk and the impact of it in the financial statements.

(A) Credit risk

The Company takes on exposure to credit risk, which is the risk that counterparty will default on its contractual obligations resulting in financial loss to the Company. The maximum exposure to credit risk at the reporting date is the carrying value of each class of financial assets disclosed in note 40.

(i) Trade and other receivables

Customer credit risk is managed by the Company through established policy and procedures and control relating to customer credit risk management. Trade receivables are non-interest bearing and are generally carrying up to 60 days credit terms. The Company has a detailed review mechanism of overdue customer receivables at various levels within organization to ensure proper attention and focus for realization. Trade receivables are consisting of a large number of customers. Where credit risk is high, domestic trade receivables are backed by security deposits. Export receivables are backed by letters of credit.

The Company uses specific identification method in determining the allowances for credit losses of trade receivables considering historical credit loss experience and is adjusted for forward looking information.

The ageing of trade receivables (net of provisions) as of balance sheet date is given below. The age analysis have been considered from the due date:

Receivables are deemed to be past due or impaired with reference to the Company''s normal terms and conditions of business. These terms and conditions are determined on a case to case basis with reference to the customer''s credit quality and prevailing market conditions. Receivables that are classified as ''past due'' in the above tables are those that have not been settled within the terms and conditions that have been agreed with that customer.

(ii) Other financial assets and deposits

Credit risk from balances with banks, deposits, etc is managed by the Company''s finance department. Investments of surplus funds are made only with approved counterparties in accordance with the Company''s policy. None of the Company''s cash equivalents with banks, deposits, investments and other receivables were past due or impaired as at 31st March 2019 and 31st March 2018 (except for deposits of RS, 10.00 lacs).

The impairment provision as disclosed above are based on assumptions about risk of default and expected loss rates. The Company uses judgment in making these assumptions based on the Company''s past history, existing market condition as well as forward looking estimates at the end of each reporting period.

(B) Liquidity risk

Liquidity risk is the risk that an entity will encounter difficulty in meeting obligations associated with financial liabilities that are settled by delivering cash or another financial asset.

Management monitors rolling forecasts of the Company''s liquidity position and cash and cash equivalents on the basis of expected cash flows. This is generally performed in accordance with practice and limits set by the Company.

(i) Maturities of financial liabilities

The tables below analyse the Company''s financial liabilities into relevant maturity groupings based on their contractual maturities.

The amounts disclosed in the table are the contractual undiscounted cash flows. Balances due within 12 months equal their carrying balances as the impact of discounting is not significant.

*gross of debt origination cost

(C) Market risk

(i) Foreign currency risk

The Company deals with foreign trade payables , trade receivables etc. and is therefore exposed to foreign exchange risk associated with exchange rate movement. ^y

The Company operates internationally and portion of the business is transacted in several currencies and consequently the Company is exposed to foreign exchange risk through its sales in overseas and purchases from overseas suppliers in various foreign currencies. Foreign currency exchange rate exposure is partly balanced by purchasing of goods, commodities and services in the respective currencies.

Foreign currency risk exposure

The Company''s exposure to foreign currency risk at the end of the reporting period expressed in Rupees (foreign currency amount multiplied by closing rate), are as follows:-

Sensitivity

The sensitivity of profit or loss to changes in the exchange rates arises mainly from foreign currency denominated financial instruments.

@ Holding all other variables constant

(ii) Interest rate risk

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The Company''s exposure to the risk of changes in market interest rates relates primarily to the Company''s debt obligations with floating interest rates.

The Company''s main interest rate risk arises from borrowings with variable rates, which expose the Company to cash flow interest rate risk. During 31st March 2019 and 31st March 2018, the Company''s borrowings at variable rate were mainly denominated in Rupees.

The Company''s fixed rate borrowings and deposits with banks are carried at Amortized cost. They are therefore not subject to interest rate risk as defined in Ind AS 107, since neither the carrying amount nor the future cash flows will fluctuate because of a change in market interest rates.

(a) Interest rate risk exposure On Financial Liabilities:

The exposure of the Company''s financial liabilities to interest rate risk is as follows:

# Holding all other variables constant

(iii) Securities price risk

Securities price risk is the risk that the fair value of a financial instrument will fluctuate due to changes in market traded prices.

(a) Exposure

The Company''s exposure to securities price risk arises from investments in equity instruments held by the Company and classified in the balance sheet at fair value through other comprehensive income. To manage its price risk arising from investments in equity securities, the Company does regular monitoring of security prices. In general, these investments are not held for trading purposes.

# Holding all other variables constant

(iv) Commodities price risk ^y

The Company has in place policies to manage the Company''s exposure to fluctuation in the prices of the key materials and commodities used in the operations. Nevertheless, it believes that it has competitive advantage in terms of quality products and by continually upgrading its expertise and range of products to meet the needs of its customers. Commodities price risk exposure is evaluated and managed through operating procedures and sourcing policies. The management does not consider the Company''s exposure to commodities price risk significant as on 31st March 2019.

Note 3: Debt reconciliation

This section sets out an analysis of debt and the movements in debt during the year

Note 4: Segment information

The Company is primarily engaged in single reportable operating segment viz. Paper and hence no segment disclosure is required. However, the Company has reported revenue from external customers based on location of customer in different geographical areas.

The Company''s operating segments are organized and managed through the respective business managers, according to the nature of products manufactured and sold with each segment representing a strategic business unit. These business units'' performance are reviewed by the Managing Director of the Company (Chief Operating Decision Maker

The amounts reported to CODM are based on the accounting principles used in the preparation of financial statements as per Ind AS. Segment''s performance is evaluated based on segment revenue and segment result viz. profit or loss from operating activities before tax. Accordingly, finance costs / income are not allocated to individual segment.

Segment assets / liabilities comprise assets / liabilities directly managed by each segment. Segment assets primarily include receivables, property, plant and equipment, capital work-in-progress, inventories, cash and cash equivalents. Segment liabilities primarily include operating liabilities. Segment capital expenditure comprises additions to property, plant and equipment and intangible assets.

All non-current assets of the Company (excluding financial assets) are located in India.

No customer individually accounted for more than 10% of the revenues from external customers during the years ended 31st March 2019 and 31st March 2018.

Note 5: Related party disclosures

Names of related parties and related party relationship

Related parties with whom transactions have taken place during the year

Enterprise having significant influence on the Company Central India Industries Limited

Key management personnel/directors Mr. C.K.Birla (Non-executive Chairman)

Mr. A.Ghosh (Non-executive Director) (Ceased from 31-01-2019)

Mr. Michael Bastian (Non-executive Director)

Mr. N.S.Sisodia (Non-executive Director)

Ms. Gauri Rasgotra (Non-executive Director)

Mr. S. Vishwanathan (Non-executive Director)

(appointed w.e.f 25-03-2019)

Mr. M.L. Pachisia (Managing director)

Mr. P K. Sonthalia (President Finance & CFO)

Mr. Ajay Gupta (CEO- Amlai Paper Mills)

Mr. B.S.Gilra (Upto 17-04-2018)

Relatives of key management personnel/ Ms. Nirmala Birla directors Ms. Amita Birla

Ms. Avani Birla Ms. Avanti Birla Enterprises owned or significantly Origami

influenced by key management personnel/ Origami Cellulo Private Limited ^{directors or their relatives} Orient Cement Limited

Orient Electric Limited C K Birla Corporate Services Limited Post-employment employee benefit plans Birla Industries Provident Fund

Orient Paper & Industries Limited Employees Gratuity Fund Orient Paper & Industries Limited Superannuation Fund

Related party transactions

The following table provides the total amount of transactions that have been entered into with related parties for the relevant financial year:

*No separate valuation is done for key managerial personnel in respect of post-employment benefits and other long-term benefits. The same is included in the note 47-Employee benefits.

f. Terms and conditions of transactions with related parties

Transactions relating to dividend were on the same terms and conditions that applied to other shareholders. The sale to and purchases from related parties are made in the ordinary course of business. Outstanding balances at the year-end are unsecured and interest free and settlement occurs in cash. No provisions are held against receivables from related parties. There are no loans outstanding with related parties.

Note 6: Employee benefits

(i) Compensated absences

The Company provides for accumulation of leave by certain categories of its employees. These employees can carry forward a portion of the unutilized leave balances and utilize it in future periods or receive cash in lieu thereof as per the Company''s policy. The Company records a provision for leave obligations in the period in which the employees render the services that increases this entitlement.

The total provision recorded by the Company towards this obligation was RS, 660.31 lacs (31st March 2018: RS, 618.37 lacs). The amount of the provision is presented as current, since the Company does not have an unconditional right to defer settlement for any of these obligations. However, based on past experience, the Company does not expect all employees to take full amount of accrued leave or require payment within the next twelve months. The following amounts reflect leave that is not expected to be taken or paid within the next twelve months.

(ii) Post-employment defined benefit plan Gratuity

The Company provides for gratuity, a defined benefit retirement plan covering eligible employees. Every employee is entitled to a benefit equivalent to fifteen days salary last drawn for each completed year of service on terms not less favorable than the provisions of the Payment of Gratuity Act, 1972. The same is payable at the time of separation from the Company or retirement, whichever is earlier. The benefits vest after five years of continuous service.

The gratuity plan is administered and managed by the Trustees who are responsible for the overall governance of the plan and to act in accordance with the provisions of the trust deeds and rules in the best interests of the plan participants.

The above sensitivity analysis are based on a change in an assumption while holding all other assumptions constant. In practice, this is unlikely to occur, and changes in some of the assumptions may be correlated. When calculating the sensitivity of the defined benefit obligation to significant actuarial assumptions, the same method (present value of the defined benefit obligation calculated with the projected unit credit method at the end of the reporting period) has been applied as when calculating the defined benefit obligation recognized in the Balance Sheet.

The methods and types of assumptions used in preparing the sensitivity analysis did not change compared to the prior period.

(d) The major categories of plan assets

The defined benefit plans are funded with insurance companies of India.

(e) Defined benefit liability and employer contributions

Expected contributions to post-employment benefit plans in the next twelve months are RS, 360.00 lacs (31st March 2018: RS, 335.00 lacs).

The weighted average duration of the defined benefit obligation is 8 years (31st March 2018: 8 years). The expected maturity analysis of undiscounted gratuity benefits is as follows:

(iii) Risk exposure

Through its defined benefit plans the Company is exposed to a number of risks, the most significant of which are detailed below:

Investment risk:

The defined benefit plans are funded with insurance companies of India. The Company does not have any liberty to manage the funds provided to insurance companies. The present value of the defined benefit plan liability is calculated using a discount rate determined by reference to the Government of India bonds. If the return on plan asset is below this rate, it will create a plan deficit.

Discount rate risk:

The Company is exposed to the risk of fall in discount rate. A fall in discount rate will eventually increase the ultimate cost of providing the above benefit thereby increasing the value of the liability.

Demographic risk:

In the valuation of the liability, certain demographic (mortality and attrition rates) assumptions are made. The Company is exposed to this risk to the extent of actual experience eventually being worse compared to the assumptions thereby causing an increase in the benefit cost.

Salary growth risk

The present value of the defined benefit plan liability is calculated by reference to the future salaries of plan participants. An increase in the salary of the plan participants will increase the plan liability.

(iv) Provident fund

Provident fund for certain eligible employees is managed by the Company through the "Birla Industries Provident Fund", in line with the Provident Fund and Miscellaneous Provisions Act, 1952. The plan guarantees interest at the rate notified by the Provident Fund Authorities. The contribution by the employer and employee together with the interest accumulated thereon are payable to employees at the time of their separation from the Company or retirement, whichever is earlier. The benefits vest immediately on rendering of the services by the employee.

The Company has an obligation to fund any shortfall on the yield of the trust''s investments over the administered interest rates on an annual basis. These administered rates are determined annually predominantly considering the social rather than economic factors and in most cases the actual return earned by the Company has been higher in the past years. The actuary has provided a valuation for provident fund liabilities on the basis of guidance issued by Actuarial Society of India and there is no shortfall as at year-end.

The Company contributed RS, 261.87 lacs and RS, 223.68 lacs during the year ended 31st March 2019 and 31st March 2018 respectively to the above Provident Fund.

Further the Company is also contributing to the provident fund administered by government of India for some of the employees as per regulations. The obligation of the group is limited to the amount contributed and it has no further contractual nor any constructive obligation.

The Company contributed RS, 226.14 lacs and RS, 240.84 lacs during the year ended 31st March 2019 and 31st March 2018 respectively towards above defined contribution plan.

Note 7: Employee benefits (contd.)

Dislosure relating to Honbl''e Supreme Court Of India

The Hon''ble Supreme Court of India in its judgment dated February 28, 2019 in the matter of Vivekanada Vidyamandir & Others vs The Regional Provident Fund Commissioner (II) West Bengal ('' the Order'') has laid down principles in relation to inclusion of allowances for determination of wages for the purposes of computing the provident fund contributions.

While further clarification on applicability and operation of the Order is awaited from the Provident Fund authorities, based on initial estimates by the management the impact of the Order is not expected to be material on the financial statements.

(v) Superannuation fund

The Company operates a superannuation fund scheme with Life Insurance Corporation of India (LIC) for eligible employees for some of its employees towards which the Company contributes up to a maximum of 15% of the employees'' basic salary, which is charged to the Statement of Profit and Loss.

The Company contributed RS, 112.75 lacs and RS, 106.18 lacs during the year ended 31st March 2019 and 31st March 2018 respectively towards above defined contribution plan of the Company.

Note 8: Earnings per equity share (EPS)

The following reflects the profit and share data used in the basic and diluted EPS computations:

Note 9: Leases

Finance lease: Company as lessee

The Company has finance lease agreements for plant and equipment’s. These lease agreements has terms of renewal and bargain purchase option. Each renewal is at the option of lessee. There are no contingent rent, no escalation clause and no restrictions imposed by lease arrangements. Future minimum lease payments (MLP) under finance leases together with the present value of the net MLP are as follows:

Operating lease: Company as lessee

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

Operating lease: Company as lessor

The Company has leased out certain buildings on operating leases. The lease term is for 1-3 years and thereafter renewable. There is escalation clause in the lease agreements. The rent is not based on any contingencies. There are no restrictions imposed by lease arrangements. The leases are cancellable.

Note 10: Capital and other commitments

(a) Estimated amount of contracts remaining to be executed on capital account and not provided for (net of advances) RS, 3,648.49 lacs (31st March 2018: RS, 2,488.81 lacs) [including H Nil (31st March 2018: RS, 34.83 lacs) relating to intangible assets].

(b) For commitments relating to lease arrangements refer note 49.

Note 11: Contingent liabilities (contd.)

Company, the quantum of water allowed to be drawn was 1165 MCF and the Company had never drawn the water even up to the initial quantity of 1165 MCF since it had not attained full development of the paper mill. One of the major reasons for not being able to achieve full development was frequent and perennial shortage of water. Based on an interim order passed by the Madhya Pradesh High Court in the aforesaid writ petition, the Company started paying water charges based on actual consumption of water (less than 1165 MCF), while the WRD of the State Government continued to raise bills on the basis of assumed consumption of 2500 MCF plus interest and penalty thereon. In January 2009, the High Court of Madhya Pradesh upheld the constitutional validity of August 2000 notification. After the aforesaid judgment, the Company paid RS, 908.47 lacs being the difference amount between the assumed quantity of 1165 MCF and the actual consumption, while the WRD of the State Government continued to raise the bills on the basis of assumed quantity of water consumption of 2500 MCF till April 2009, when the Company entered into a new agreement with the WRD of the State Government for water consumption of only 440 MCF effective from May 2009. The total balance demand for the aforesaid period amounts to RS, 98,248.03 lacs (31st March 2018: RS, 77,089.44 lacs) [including interest and penalty of RS, 96,835.10 lacs (31st March 2018: RS, 75,676.51 lacs)] as at 31st March 2018, for which no provision has been made in the books. The WRD of the State Government issued a notice for recovery of aforesaid demand in February 2015, against which the Company filed a writ petition in the Madhya Pradesh High Court and obtained an interim stay on the recovery. Also, Madhya Pradesh High Court has set aside demand for penal interest in a similar case for another Company. The Company has been legally advised that it has a fit case for quashing the present demand.

d) In respect of above contingent liabilities, it is not practicable for the Company to estimate the timings of cash outflows, if any, pending resolution of the respective proceedings. The Company does not expect any reimbursements in respect of above.

Note 12: Managerial remuneration

The Company''s application to the Central Government seeking waiver of excess remuneration paid to Managing Director for the financial year 2015-16 has been abated consequent upon notification of Companies (Amendment) Act, 2017 on 12th September, 2018. The Company is in the process of obtaining requisite shareholder''s approval within the prescribed time line.

The above information has been provided as available with the Company to the extent such parties could be identified on the basis of the information available witthe Company regarding the status of suppliers under the MSMED Act.

---

Mar 31, 2018

note 1: Fair value measurements (Contd.)

(i) Fair value hierarchy

The following table provides an analysis of financial instruments that are measured subsequent to initial recognition at fair value, grouped into level 1 to level 3, as described below:

Quoted prices in an active market (level 1): This level of hierarchy includes financial assets that are measured by reference to quoted prices (unadjusted) in active markets for identical assets or liabilities. This category consists of investment in quoted equity shares.

Valuation techniques with observable inputs (level 2): This level of hierarchy includes financial assets and liabilities, measured using 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).

Valuation techniques with significant unobservable inputs (level 3): This level of hierarchy includes financial assets and liabilities measured using inputs that are not based on observable market data (unobservable inputs). Fair values are determined in whole or in part, using a valuation model based on assumptions that are neither supported by prices from observable current market transactions in the same instrument nor are they based on available market data. This level of hierarchy includes Company''s investments in equity shares which are unquoted or for which quoted prices are not available at the reporting dates.

The Company''s policy is to recognize transfers into and transfers out of fair value hierarchy levels as at the end of the reporting period. There were no transfers between level 1 and level 2 fair value measurements during the year ended 31st March 2018 and 31st March 2017.

- 314.0/ 13,1/U.OO

Fair value measurements using significant unobservable inputs (level 3)

Fair valuation of unquoted equity investments is based on valuation done by an external valuer using discounted cash flow analysis and intrinsic value techniques. A change in significant unobservable inputs used in such valuation (mainly earnings growth rate and risk adjusted discount rate) is not expected to have a material impact on the fair values of such assets as disclosed above.

note 42: Capital management

(a) Risk management

The Company''s objectives when managing capital are to:

- safeguard its ability to continue as a going concern, so that it can continue to provide returns for shareholders and benefits for other stakeholders, and

- maintain an optimal capital structure to reduce the cost of capital.

In order to maintain or adjust the capital structure, the Company may adjust the amount of dividends paid to shareholders, return of capital to shareholders, issue new shares or sell assets to reduce debt.

The Company''s policy is to maintain a stable and strong capital structure with a focus on total equity so as to maintain investors, creditors and market confidence and to sustain future development and growth of its business. The Company will take appropriate steps in order to maintain, or if necessary adjust, its capital structure. The Company is not subject to any externally imposed capital requirements.

no changes were made to the objectives, policies or processes for managing capital during the years ended 31st March 2018 and 31st March 2017.

Loan covenants:

Under the terms of the major borrowing facilities, the Company is required to comply with certain financial covenants. The Company has complied with the debt covenants throughout the reporting period.

(All amounts in Rupees lacs, unless otherwise stated) note 43: Financial risk management

The Company''s activities expose it to credit risk, liquidity risk and market risk (i.e. foreign currency risk, interest rate risk and price risk). This note explains the sources of risk which the entity is exposed to and how the entity manages the risk and the impact of it in the financial statements.

(A) Credit risk

The Company takes on exposure to credit risk, which is the risk that counterparty will default on its contractual obligations resulting in financial loss to the Company. The maximum exposure to credit risk at the reporting date is the carrying value of each class of financial assets disclosed in note 41.

(i) Trade and other receivables

Customer credit risk is managed by the Company through established policy and procedures and control relating to customer credit risk management. Trade receivables are non-interest bearing and are generally carrying up to 60 days credit terms. The Company has a detailed review mechanism of overdue customer receivables at various levels within organization to ensure proper attention and focus for realization. Trade receivables are consisting of a large number of customers. Where credit risk is high, domestic trade receivables are backed by security deposits. Export receivables are backed by letters of credit.

The Company uses specific identification method in determining the allowances for credit losses of trade receivables considering historical credit loss experience and is adjusted for forward looking information.

The ageing of trade receivables (net of provisions) as of balance sheet date is given below. The age analysis have been considered from the due date:

Receivables are deemed to be past due or impaired with reference to the Company''s normal terms and conditions of business. These terms and conditions are determined on a case to case basis with reference to the customer''s credit quality and prevailing market conditions. Receivables that are classified as ''past due'' in the above tables are those that have not been settled within the terms and conditions that have been agreed with that customer.

(ii) Other financial assets and deposits

Credit risk from balances with banks, deposits, etc is managed by the Company''s finance department. Investments of surplus funds are made only with approved counterparties in accordance with the Company''s policy. None of the Company''s cash equivalents with banks, deposits, investments and other receivables were past due or impaired as at 31st March 2018, 31st March 2017 and 1st April 2016 (except for deposits of RS,10.00 lacs).

The impairment provision as disclosed above are based on assumptions about risk of default and expected loss rates. The Company uses judgment in making these assumptions based on the Company''s past history, existing market condition as well as forward looking estimates at the end of each reporting period.

(B) Liquidity risk

Liquidity risk is the risk that an entity will encounter difficulty in meeting obligations associated with financial liabilities that are settled by delivering cash or another financial asset.

Management monitors rolling forecasts of the Company''s liquidity position and cash and cash equivalents on the basis of expected cash flows. This is generally performed in accordance with practice and limits set by the Company.

(i) Maturities of financial liabilities

The tables below analyse the Company''s financial liabilities into relevant maturity groupings based on their contractual maturities.

The amounts disclosed in the table are the contractual undiscounted cash flows. Balances due within 12 months equal their carrying balances as the impact of discounting is not significant.

(C) Market risk

(i) Foreign currency risk

The Company deals with foreign trade payables , trade receivables etc. and is therefore exposed to foreign exchange risk associated with exchange rate movement.

The Company operates internationally and portion of the business is transacted in several currencies and consequently the Company is exposed to foreign exchange risk through its sales in overseas and purchases from overseas suppliers in various foreign currencies. Foreign currency exchange rate exposure is partly balanced by purchasing of goods, commodities and services in the respective currencies.

Foreign currency risk exposure

The Company''s exposure to foreign currency risk at the end of the reporting period expressed in Rupees (foreign currency amount multiplied by closing rate), are as follows:-

(ii) Interest rate risk

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The Company''s exposure to the risk of changes in market interest rates relates primarily to the Company''s debt obligations with floating interest rates.

The Company''s main interest rate risk arises from borrowings with variable rates, which expose the Company to cash flow interest rate risk. During 31st March 2018 and 31st March 2017, the Company''s borrowings at variable rate were mainly denominated in Rupees.

The Company''s fixed rate borrowings and deposits with banks are carried at amortized cost. They are therefore not subject to interest rate risk as defined in Ind AS 107, since neither the carrying amount nor the future cash flows will fluctuate because of a change in market interest rates.

(iii) Securities price risk

Securities price risk is the risk that the fair value of a financial instrument will fluctuate due to changes in market traded prices.

(a) Exposure

The Company''s exposure to securities price risk arises from investments in equity instruments held by the Company and classified in the balance sheet at fair value through other comprehensive income. To manage its price risk arising from investments in equity securities, the Company does regular monitoring of security prices. In general, these investments are not held for trading purposes.

(b) Sensitivity

The table below summarizes the impact of increase/decrease of the share prices on the Company''s equity.

(iv) Commodities price risk

The Company has in place policies to manage the Company''s exposure to fluctuation in the prices of the key materials and commodities used in the operations. Nevertheless, it believes that it has competitive advantage in terms of quality products and by continually upgrading its expertise and range of products to meet the needs of its customers. Commodities price risk exposure is evaluated and managed through operating procedures and sourcing policies. The management does not consider the Company''s exposure to commodities price risk significant as on 31st March 2018.

(a) Description

Pursuant to the Scheme of Arrangement (the ''scheme''), duly sanctioned by the national Company Law Tribunal vide Order dated 9th november 2017 with effect from the Appointed Date i.e., 1st March 2017, the consumer electric business of the Company stands transferred to the newly formed company namely "Orient Electric Limited” (the ''resulting company). The certified copy of the order sanctioning the Scheme has been filed with the Registrar of Companies, Odisha on 8th December 2017. The scheme has been considered in these financial statements by transferring the carrying amount of assets and liabilities pertaining to the consumer electric business with effect from the Appointed Date. Further, the financial statements for the year ended 31st March 2017 have been restated by the management to give effect to the transfer of the consumer electric business with effect from 1st March 2017.

The above consumer electric business is a separate segment in segment reporting (refer note 47).

(i) Includes deferred tax assets created on brought forward losses and unabsorbed depreciation apportioned amongst the demerged company and the resulting company in the ratio of assets retained by the demerged company and transferred to the resulting company as per the scheme.

(ii) The above liabilities includes H14,157.00 lacs being general or multipurpose borrowings of the Company transferred to the resulting company in the ratio of the value of assets transferred bears to the total value of the assets of the Company immediately before the appointed date in terms of the said scheme.

(iii) Represents adjustment on account of deferred tax assets on items allowable for tax purpose on payment basis to be claimed by the resulting company as decided by the management of the Company and the resulting company at the time of filing revised income tax return for the financial year 2016-17.

(f) Pursuant to the scheme, 5 lacs equity shares of H1 each of the resulting company (Orient Electric Limited) amounting to H5.00 lacs held by the Company stand cancelled and the said amount has been debited to the Statement of Profit and Loss.

(g) In addition, an amount of H143.17 lacs being the difference between net carrying amount of property, plant and equipment as per books as on appointed date and value at which such assets were transferred pursuant to the scheme has been adjusted against the general reserve.

All non-current assets of the Company (excluding financial assets) are located in India.

no customer individually accounted for more than 10% of the revenues from external customers during the years ended 31st March 2018 and 31st March 2017.

note 2: Related party disclosures

names of related parties and related party relationship

Related parties with whom transactions have taken place during the year

Enterprise having significant influence on the Company Central India Industries Limited Key management personnel/directors Mr. C.K.Birla (non-executive Chairman)

Mr. B.KJhawar (non-executive Director) (up to 31st January 2018)

Mr. A.Ghosh (non-executive Director)

Mr. Michael Bastian (non-executive Director)

Mr. n.S.Sisodia (non-executive Director)

Ms. Gauri Rasgotra (non-executive Director)

Mr. M.L. Pachisia (Managing director)

Mr. P. K. Sonthalia (President Finance & CFO)

Mr. Rakesh Khanna (up to 28th February 2017)

Mr. Ajay Gupta Mr. B.S.Gilra

Relatives of key management personnel/directors Ms. nirmala Birla

Ms. Amita Birla Ms. Avani Birla Ms. Avanti Birla

Enterprises owned or significantly influenced by key Origami Enterprises

management personnel/directors or their relatives Origami

Origami Cellulo Private Limited

Orient Cement Limited

Orient Electric Limited (also refer note 44)

Post-employment employee benefit plans Birla Industries Provident Fund

Orient Paper & Industries Limited Employees Gratuity Fund Orient Paper & Industries Limited Superannuation Fund

note: The remuneration to the key managerial personnel does not include the provisions made for gratuity and leave benefits, as they are determined on an actuarial basis for the Company as a whole.

(f) Terms and conditions of transactions with related parties

Transactions relating to dividend were on the same terms and conditions that applied to other shareholders. The sale to and purchases from related parties are made in the ordinary course of business. Outstanding balances at the year-end are unsecured and interest free and settlement occurs in cash. no provisions are held against receivables from related parties. There are no loans outstanding with related parties.

note 3: Employee benefits (i) Compensated absences

The Company provides for accumulation of leave by certain categories of its employees. These employees can carry forward a portion of the unutilized leave balances and utilise it in future periods or receive cash in lieu thereof as per the Company''s policy. The Company records a provision for leave obligations in the period in which the employees render the services that increases this entitlement.

The total provision recorded by the Company towards this obligation was H618.37 lacs (31st March 2017: H638.06 lacs, 1st April 2016: H922.94 lacs). The amount of the provision is presented as current, since the Company does not have an unconditional right to defer settlement for any of these obligations. However, based on past experience, the Company does not expect all employees to take full amount of accrued leave or require payment within the next twelve months. The following amounts reflect leave that is not expected to be taken or paid within the next twelve months.

(ii) Post-employment defined benefit plan Gratuity

The Company provides for gratuity, a defined benefit retirement plan covering eligible employees. Every employee is entitled to a benefit equivalent to fifteen days salary last drawn for each completed year of service on terms not less favourable than the provisions of the Payment of Gratuity Act, 1972. The same is payable at the time of separation from the Company or retirement, whichever is earlier. The benefits vest after five years of continuous service. The Company has removed the maximum ceiling for certain catergory of employees / increased the maximum limit to H20.00 lacs for certain category of employees during the year.

The gratuity plan is administered and managed by the Trustees who are responsible for the overall governance of the plan and to act in accordance with the provisions of the trust deeds and rules in the best interests of the plan participants.

(iii) Risk exposure

Through its defined benefit plans the Company is exposed to a number of risks, the most significant of which are detailed below: Investment risk:

The defined benefit plans are funded with insurance companies of India. The Company does not have any liberty to manage the funds provided to insurance companies. The present value of the defined benefit plan liability is calculated using a discount rate determined by reference to the Government of India bonds. If the return on plan asset is below this rate, it will create a plan deficit.

Discount rate risk:

The Company is exposed to the risk of fall in discount rate. A fall in discount rate will eventually increase the ultimate cost of providing the above benefit thereby increasing the value of the liability.

Demographic risk:

In the valuation of the liability, certain demographic (mortality and attrition rates) assumptions are made. The Company is exposed to this risk to the extent of actual experience eventually being worse compared to the assumptions thereby causing an increase in the benefit cost.

Salary growth risk:

The present value of the defined benefit plan liability is calculated by reference to the future salaries of plan participants. An increase in the salary of the plan participants will increase the plan liability.

(iv) Provident fund

Provident fund for certain eligible employees is managed by the Company through the "Birla Industries Provident Fund””, in line with the Provident Fund and Miscellaneous Provisions Act, 1952. The plan guarantees interest at the rate notified by the Provident Fund Authorities. The contribution by the employer and employee together with the interest accumulated thereon are payable to employees at the time of their separation from the Company or retirement, whichever is earlier. The benefits vest immediately on rendering of the services by the employee.

The Company has an obligation to fund any shortfall on the yield of the trust''s investments over the administered interest rates on an annual basis. These administered rates are determined annually predominantly considering the social rather than economic factors and in most cases the actual return earned by the Company has been higher in the past years. The actuary has provided a valuation for provident fund liabilities on the basis of guidance issued by Actuarial Society of India and there is no shortfall as at year-end.

The Company contributed RS,223.68 lacs and RS,252.17 lacs during the year ended 31st March 2018 and 31st March 2017 respectively to the above Provident Fund.

Further the Company is also contributing to the provident fund administered by government of India for some of the employees as per regulations. The obligation of the group is limited to the amount contributed and it has no further contractual nor any constructive obligation.

The Company contributed RS,240.84 lacs and RS,596.24 lacs during the year ended 31st March 2018 and 31st March 2017 respectively towards above defined contribution plan.

(v) Superannuation fund

The Company operates a superannuation fund scheme with Life Insurance Corporation of India (LIC) for eligible employees for some of its employees towards which the Company contributes up to a maximum of 15% of the employees'' basic salary, which is charged to the Statement of Profit and Loss.

The Company contributed RS,106.18 lacs and RS,153.99 lacs during the year ended 31st March 2018 and 31st March 2017 respectively towards above defined contribution plan of the Company.

Operating lease: Company as lessor

The Company has leased out certain buildings on operating leases. The lease term is for 1-3 years and thereafter renewable. There is escalation clause in the lease agreements. The rent is not based on any contingencies. There are no restrictions imposed by lease arrangements. The leases are cancellable.

note 52: Capital and other commitments

(a) Estimated amount of contracts remaining to be executed on capital account and not provided for (net of advances) RS,2,488.81 lacs (31st March 2017: RS,800.18 lacs, 1st April 2016: RS,890.51 lacs) [including RS,34.83 lacs (31st March 2017: nil, 1st April 2016: nil) relating

to intangible assets].

(b) For commitments relating to lease arrangements refer note 51.

d) In October 1963, the paper division of the Company had applied to the Public Work Department (Irrigation) of the Madhya Pradesh State Government for drawing water without any charge from Some River up to 1165 Million Cubic Feet (MCF) with the provision for increase up to 2500 MCF on full development of paper mill, the permission for which was granted by the State Government. In August 2000, the Madhya Pradesh State Government issued a notification and decided to levy charges on water consumption from river resources for industrial purposes with retrospective effect from June, 1998, the constitutional validity of which was challenged by the Company by way of a writ petition in the High Court of Madhya Pradesh. During the pendency of the said writ petition, the Water Resource Department (WRD) of the State Government started raising the bill for consumption of water on the basis of assumption of total quantum of water allowed to be drawn by the Company at 2500 MCF whereas, as per the Company, the quantum of water allowed to be drawn was 1165 MCF and the Company had never drawn the water even up to the initial quantity of 1165 MCF since it had not attained full development of the paper mill. One of the major reasons for not being able to achieve full development was frequent and perennial shortage of water. Based on an interim order passed by the Madhya Pradesh High Court in the aforesaid writ petition, the Company started paying water charges based on actual consumption of water (less than 1165 MCF), while the WRD of the State Government continued to raise bills on the basis of assumed consumption of 2500 MCF plus interest and penalty thereon. In January 2009, the High Court of Madhya Pradesh upheld the constitutional validity of August 2000 notification. After the aforesaid judgment, the Company paid RS,908.47 lacs being the difference amount between the assumed quantity of 1165 MCF and the actual consumption, while the WRD of the State Government continued to raise the bills on the basis of assumed quantity of water consumption of 2500 MCF till April 2009, when the Company entered into a new agreement with the WRD of the State Government for water consumption of only 440 MCF effective from May 2009. The total balance demand for the aforesaid period amounts to RS,77,089.44 Iocs (31st March 2017: RS,60,471.68 Iocs, 1st April 2016: RS,47,434.91 Iocs) [including interest and penalty of RS,75,676.51 lacs (31st March 2017: RS,59,058.75 lacs, 1st April 2016: RS,46,021.98 lacs)] as at 31st March 2018, for which no provision has been made in the books. The WRD of the State Government issued a notice for recovery of aforesaid demand in February 2015, against which the Company filed a writ petition in the Madhya Pradesh High Court and obtained an interim stay on the recovery. Also, Madhya Pradesh High Court has set aside demand for penal interest in a similar case for another Company. The Company has been legally advised that it has a fit case for quashing the present demand.

e) In respect of above contingent liabilities, it is not practicable for the Company to estimate the timings of cash outflows, if any, pending resolution of the respective proceedings. The Company does not expect any reimbursements in respect of above.

note 5: Managerial remuneration

Due to inadequacy of profit, remuneration paid / provided to Managing Director of the Company during the year ended 31st March 2016 had exceeded the limit prescribed under Section 197 read with Schedule V of the Companies Act,2013 by H177.70 lacs . The Company has applied to the Central Government for approval of above excess remuneration and pending receipt of the approval, no adjustments to the financial statements have been made..

Further during the current year, the application for waiver of excess remuneration paid to the Managing Director for the year ended 31st March 2015 amounting to RS,178.19 lacs has not been approved by the Central Government and the said amount has been recovered from the Managing Director during the year.

note 57: First-time adoption of Ind RS Transition to Ind AS

These are the Company''s first financial statements prepared in accordance with Ind AS.

The accounting policies set out in note 2, have been applied in preparing the financial statements for the year ended 31st March 2018, the comparative information presented in these financial statements for the year ended 31st March 2017 and in the preparation of an opening Ind AS Balance Sheet at 1st April 2016 (the Company''s date of transition). In preparing its opening Ind AS Balance Sheet, the Company has adjusted the amounts reported previously in financial statements prepared in accordance with the accounting standards notified under Companies (Accounting Standards) Rules, 2006 (as amended) and other relevant provisions of the Act (previous GAAP or Indian GAAP). An explanation of how the transition from previous GAAP to Ind AS has affected the Company''s financial position, financial performance and cash flows is set out in the following tables and notes.

R. Exemptions and exceptions availed

Set out below are the applicable Ind AS 101 optional exemptions and mandatory exceptions applied in the transition from previous GAAP to Ind AS.

R.1 Ind RS optional exemptions

R.1.1 Deemed cost for property, plant and equipment

Ind AS 101 permits a first time adopter to elect to measure an item of property, plant and equipment at the date of transition to Ind AS at its fair value and use that fair value as its deemed cost at that date.

Accordingly, the Company has elected to measure certain property, plant and equipment as at 1st April 2016 at its fair value as at the transition date and use that carrying value as the deemed cost of such property, plant and equipment.

R.1.2 Deemed cost for intangible assets and investment properties

Ind AS 101 permits a first time adopter to elect to continue with the carrying value for all of its intangible assets and investment properties as recognized in the financial statements as at the date of transition to Ind AS, measured as per the previous GAAP and use that as its deemed cost as at the date of transition.

Accordingly, the Company has elected to measure all of its intangible assets and investment properties at their previous GAAP carrying value.

R.2 Ind RS mandatory exceptions R.2.1 Estimates

An entity''s estimates in accordance with Ind ASs at the date of transition to Ind AS shall be consistent with estimates made for the same date in accordance with previous GAAP (after adjustments to reflect any difference in accounting policies), unless there is objective evidence that those estimates were in error.

Ind AS estimates as at 1st April 2016 are consistent with the estimates as at the same date made in conformity with previous GAAP. The Company made estimates for following items in accordance with Ind AS at the date of transition as these were not required under previous GAAP:

- Investment in equity instruments carried at FVOCI;

- Certain property, plant and equipment measured at fair value on transition date; and

- Determination of the fair values for financial assets / liabilities carried at amortized cost. fl.2.2 De-recognition of financial assets and liabilities

Ind AS 101 requires a first-time adopter to app

apply the de-recognition provisions of Ind AS 109 prospectively for transactions occurring on or after the date of transition to Ind AS. However, Ind AS 101 allows a first-time adopter to apply the de-recognition requirements in Ind AS 109 retrospectively from a date of the entity''s choosing, provided that the information needed to apply Ind AS 109 to financial assets and financial liabilities derecognized as a result of past transactions was obtained at the time of initially accounting for those transactions.

note 57: First-time adoption of Ind RS (Contd.)

The Company has elected to apply the de-recognition provisions of Ind AS 109 prospectively from the date of transition to Ind AS.

R.2.3 Classification and measurement of financial assets

Ind AS 101 requires an entity to assess classification and measurement of financial assets on the basis of the fact and circumstances that exists at the date of transition to Ind AS. The Company has assessed the same accordingly.

(a) Proposed dividend

Under the previous GAAP, dividends proposed by the board of directors after the balance sheet date but before the approval of the financial statements were considered as adjusting events. Accordingly, provision for proposed dividend (including dividend distribution tax thereon) was recognized as a provision. Under Ind AS, such dividends are recognized when the same is approved by the shareholders in the general meeting. Accordingly, the provision for proposed dividend (including dividend distribution tax thereon) included under provisions has been reversed with corresponding adjustment to retained earnings.

(b) Fair valuation of equity investments

Under the previous GAAP, investments in equity instruments were classified as long-term investments or current investments based on the intended holding period and reliability. Long-term investments were carried at cost less provision for other than temporary decline in the value of such investments. Current investments were carried at lower of cost and fair value. Under Ind AS, these investments are required to be measured at fair value. The Company only has investments in equity instruments which are designated at FVOCI and accordingly fair value changes with respect to such investments have been recognized in FVOCI - equity investments reserve as at the date of transition and subsequently in the other comprehensive income.

(c) Fair valuation of certain property, plant and equipment

Under the previous GAAP, property, plant and equipment were carried at their historical cost/revalued amount. Under Ind AS, the Company has chosen to fair value certain property, plant and equipment as on the date of transition. Accordingly the resulting increase of H89,408.38 lacs in the value of such property, plant and equipment to H89,547.82 lacs has been recognized in the retained earnings. The corresponding increase amount, where applicable, has been depreciated over the useful life of such property, plant and equipment.

(d) Revaluation reserve adjustment

Under the previous GAAP, revaluation reserve as on 31st March 2016 has been transferred to general reserve on 1st April 2016 pursuant to revision in accounting standards notified under Companies (Accounting Standards) Rules. The transfer made under previous GAAP from the revaluation reserve on 1st April 2016 has been reversed and depreciation has been provided on the cost/deemed cost of the respective asset as on the date of transition.

note 57: First-time adoption of Ind RS (Contd.)

(e) Impact of reclassification of actuarial gains and losses

Under Ind AS, remeasurements i.e. actuarial gains and losses and the return on plan assets, excluding amounts included in the net interest expense on the net defined benefit liability are recognized in other comprehensive income instead of profit or loss. Under the previous GAAP, these remeasurements were forming part of the profit or loss for the year. There is no impact on the total equity as at 31st March 2016.

(f) Impact of deferred tax adjustments

Under the Previous GAAP, deferred tax was accounted using the income statement approach, on timing differences between the taxable profit and accounting profit for the year. Under Ind AS, deferred tax is recognized following balance sheet approach on the temporary differences between the carrying amount of asset or liability in the balance sheet and its tax base. In addition, various transitional adjustments have also led to recognition of deferred taxes on new temporary differences.

(g) Other comprehensive income

Under Ind AS, all items of income and expense recognized in a period should be included in profit or loss for the period, unless a standard requires or permits otherwise. Items of income and expense that are not recognized in profit or loss but are shown in the statement of profit and loss as ''other comprehensive income'' includes remeasurements of defined benefit plans, and fair value gains or (losses) on FVOCI equity instruments. The concept of other comprehensive income did not exist under previous GAAP.

(h) Amount adjusted pursuant to scheme of arrangement

The Company''s Board of Directors at its meeting held on 15th September 2016 had approved a scheme of arrangement to demerge the consumer electric business undertaking of the Company by transferring the same on a going concern basis to a newly formed Company namely ''"''Orient Electric Limited”” w.e.f 1st March, 2017. The said scheme of demerger has been approved by the nCLT vide Order dated 9th November 2017 and though the scheme is effective after the balance sheet date, it is operative from the Appointed Date i.e., 1st March 2017 as per the scheme.

Consequently, the total equity as at 31st March 2017 decreased by RS,21,383.68 lacs consisting of RS,20,104.46 lacs on account of net assets transferred to Orient Electric Limited and other adjustments (refer note 44) and H1,274.22 lacs on account of net profit of consumer electric business undertaking for the month of March 2017. Further, pursuant to the scheme, 5 lacs equity shares of H1 each of the Resulting Company (Orient Electric Limited) amounting to RS,5.00 lacs held by the Company stand cancelled.

---

Mar 31, 2017

(b) Terms/ rights attached to equity shares

The Company has only one class of equity shares having a par value of C1 per share. Each holder of equity shares is entitled to one vote per share. The Company declares and pays dividends in Indian rupees.

During the year ended 31 March 2017, the amount of per share dividend recognized as distributions to equity shareholders was nil (31 March 2016: C0.25 per share).

The Board of Directors at its meeting held on 17th April,2017 and 16th May,2017, have declared an interim dividend of C0.50 per equity share and proposed a final dividend of C0.50 per equity share respectively for the financial year ended 31st March,2017. The proposal is subject to the approval at the forthcoming Annual General Meeting. Total Cash out flow would be C2553.82 lacs including corporate dividend tax and the same will be accounted for in the financial year 2017-18 in terms of Revised Accounting Standard -4 notified under section 133 of the Companies Act 2013, read together with paragraph 7 of the Companies (Accounts) Rules 2014 and Companies (Accounting Standards) Amendment Rules 2016 .

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.

notes:

(a) Term loan from a Financial Institution is secured by first pari-passu charge on the fixed assets (both present and future) pertaining to the Paper plants at Amlai & Brajrajnagar and carries interest @ 10.95% p.a. (31 March 2016: 12.05 % p.a.) and is repayable in 20 equal quarterly installments starting from 28 June, 2014 (up to 28 March, 2019).

(b) Term loan from Banks are secured by first pari-passu charge on the fixed assets (both present and future) pertaining to the Paper plants at Amlai & Brajrajnagar.Term loan of RS,3970.59 lacs carries interest @ 9.10% p.a (31 March 2016: 11.10% p.a.) and RS,5000 lacs carries interest @ 10.45% p.a. (31 March 2016: @ 10.55% p.a.). The above loans are repayable in 17 equal quarterly installments starting from 28 May, 2015 and 20 unequal quarterly installments starting from 08 May, 2018 respectively. (up to 28 May, 2019 and 8 February, 2023 respectively)

(c) Term loan from others is secured by pari-passu first charge on the fixed assets (both present and future) pertaining to the Paper plants at Amlai and Brajrajnagar and carries interest @11.00% p.a. (31 March 2016: @11.00% p.a) and is repayable in 16 equal quarterly installments starting from 21 March, 2017 (up to 21 December, 2020).

(d) Finance lease obligation is secured against plant & machinery and computers taken on lease. The gross investments in lease, i.e. lease obligation plus interest, is payable in 117 monthly installments of RS,13.50 lacs each & 20 quarterly installments of RS,3.96 lacs each respectively.

a. Includes assets held in Joint Ownership RS,1,348.84 lacs (31 March 2016, RS,1,344.72 lacs), which have been charged against the amount payable as rent for the land and proportionate share of expenses.

b. Includes RS,86.91 lacs (31 March 2016, RS,79.87 lacs) in respect of flats whose registration in the Company''s name is pending.

c. Includes depreciation RS,10.61 lacs (31 March 2016: RS,188.64 lacs) on assets at Brajrajnagar unit, where manufacturing operations were not carried on during the year.

d. Includes plant and equipment taken on finance lease :- gross block of RS,859.10 lacs (31 March 2016: RS,800 lacs) and net block RS,794.19 lacs (31 March 2016: RS,787.33 lacs)

a) The Company along with other co-owners, has developed a plot of land and constructed a building thereon at 25, Barakhamba Road, new Delhi, where the Company''s share is 15%. The registration of the said plot of land of value RS,432.94 lacs (31 March 2016: RS,432.94 lacs) in the name of the Company is still pending.

b) Government Securities of Face Value RS,0.90 lac (31 March 2016: RS,0.90 lac) are lodged with Government Departments as Security Deposits.

c) Pledged as security against short term loans taken (note 8)

1. Interest in a joint venture

The Company has 29.34% share of interest valuing RS,413.92 lacs in its Joint Venture Company namely Pan African Paper Mills (EA)

Limited, Kenya which is engaged in the manufacturing of Paper.

The Company has ceased to have joint control over the above Joint Venture Company subsequent to suspension of operations from 30th January, 2009 and in view of the circumstances arising thereafter. Accordingly, no disclosure for interest in said Joint Venture asset, liabilities, income, expenses etc. have been made in these accounts.

2. Segment information

The primary segment reporting format is determined to be business segments as the company''s risks and rates of return are affected predominantly by differences in the products and services produced. Secondary information is reported geographically. The operating businesses are organized and managed separately according to the nature of the products and services provided, with each segment representing a strategic business unit that offers different products and serves different markets. Accordingly, the Company has identified "Paper” and "Electrical Consumer Durables” as the business segments.

Paper - Consists of manufacture and sale of pulp, paper & board and chemicals.

Electrical Consumer Durables - Consists of manufacture / purchase and sale of Electric Fans - ceiling, portable and airflow, along with Components and Accessories thereof, Lights & Luminaries, Appliances & Switchgears.

Others - Consist of other miscellaneous business/services comprising less than 10% revenues.

The Company primarily operates in India and therefore the analysis of geographical segments is demarcated into its Indian and Overseas Operations.

# represents trade receivable

note: The Company has common fixed assets for producing goods for domestic and overseas markets. Hence, separate figures for fixed assets / additions to fixed assets have not been furnished.

* net of excise duty.

** Excluding RS,6.34 lacs (31 March 2016, RS,21.20 lacs) being unallocated corporate/other assets.

*** Excluding RS,56.88 lacs (31 March 2016, RS,57.81 lacs) on unallocated corporate/other assets.

3. Related party disclosures

names of related parties and related party relationship Related parties where control exists

Subsidiary Company Orient Electric Ltd

Related parties with whom transactions have taken place during the year

Associate Central India & Industries Ltd

Key management personnel Mr. M. L. Pachisia (Managing Director)

Mr. P. K. Sonthalia [President (Finance) & CFO]

Mr. Rakesh Khanna Mr. Ajay Gupta Mr. B. S. Gilra

Mr. R. P. Dutta (Company Secretary)

Enterprises owned or significantly influenced by Origami Enterprises

key management personnel or their relatives Origami

Origami Cellulo Pvt. Ltd

e) In October 1963, the paper division of the Company had applied to the Public Work Department (Irrigation) of the Madhya Pradesh State Government for drawing water without any charge from Some River up to 1165 Million Cubic Feet (MCF) with the provision for increase upto 2500 MCF on full development of paper mill, the permission for which was granted by the State Government. In August 2000, the Madhya Pradesh State Government issued a notification and decided to levy charges on water consumption from river resources for industrial purposes with retrospective effect from June, 1998, the constitutional validity of which was challenged by the Company by way of a writ petition in the High Court of Madhya Pradesh. During the pendency of the said writ petition, the Water Resource Department (WRD) of the State Government started raising the bill for consumption of water on the basis of assumption of total quantum of water allowed to be drawn by the Company at 2500 MCF whereas, as per the Company, the quantum of water allowed to be drawn was 1165 MCF and the Company had never drawn the water even up to the initial quantity of 1165 MCF since it had not attained full development of the paper mill. One of the major reasons for not being able to achieve full development was frequent and perennial shortage of water. Based on an interim order passed by the Madhya Pradesh High Court in the aforesaid writ petition, the Company started paying water charges based on actual consumption of water (less than 1165 MCF), while the WRD of the State Government continued to raise bills on the basis of assumed consumption of 2500 MCF plus interest and penalty thereon. In January 2009, the High Court of Madhya Pradesh upheld the constitutional validity of August 2000 notification. After the aforesaid judgment, the Company paid RS,908.47 lacs being the difference amount between the assumed quantity of 1165 MCF and the actual consumption, while the WRD of the State Government continued to raise the bills on the basis of assumed quantity of water consumption of 2500 MCF till April 2009, when the Company entered into a new agreement with the WRD of the State Government for water consumption of only 440 MCF effective from May 2009. The total balance demand for the aforesaid period amounts to RS,60471.68 lacs (including interest and penalty of RS,59058.75 lacs) as at 31 March 2017, for which no provision has been made in the books. The WRD of the State Government issued a notice for recovery of aforesaid demand in February 2015, against which the Company filed a writ petition in the Madhya Pradesh High Court and obtained an interim stay on the recovery. Also, Madhya Pradesh High Court has set aside demand for penal interest in a similar case for another Company. The Company has been legally advised that it has a fit case for quashing the present demand.

4. Due to inadequacy of profit, remuneration paid / provided to Managing Director of the Company during the years ended 31 March 2015 and 31 March 2016 has exceeded the limit prescribed under section 197 read with schedule V of the Companies Act,2013 by RS,178.19 lacs and RS,177.70 lacs respectively. The Company has applied / made further representation to the Central government for approval of above excess remuneration.

5. Derivative instruments and unhedged foreign currency exposure

Particulars of unhedged foreign currency exposure as at the reporting date

(i) Trade Receivables RS,2343.90 lacs (USD 22.79 lacs) ,(GBP 0.02 lacs),(HKD 86.56 lacs),(Euro 1.99.lacs) [31 March 2016 RS,3199.77 lacs (USD 34.71 lacs)].(HKD 104.91 lacs), (Euro 0.01 lacs).

(ii) Trade Payables RS,1404.61 lacs (USD 21.73 lacs)& (Euro 0.14 lacs) [ 31 March 2016 RS,2304.80 lacs (USD 19.84 lacs),(Euro 11.68 lacs) (JPY 167.98 lacs)].

(iii) Capital Payables RS,25.07 lacs (USD 0.11 lacs) & (JPY 82.28 lacs)[ 31 March 2016 cnil (USD nil)].

(iv) Buyers Credit RS,1844.65 lacs (USD 22.58 lacs) & (EURO 5.47 lacs)[ 31 March 2016 RS,626.72 lacs (USD 9.42 lacs)].

6. Previous year figures

Previous year''s figures have been regrouped and rearranged wherever necessary.

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Mar 31, 2016

(b) Terms/ rights attached to equity shares

The Company has only one class of equity shares having a par value of Rs,1 per share. Each holder of equity shares is entitled to one vote per share. The Company declares and pays dividends in Indian rupees. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting.

During the year ended 31 March 2016, the amount of per share dividend recognized as distributions to equity shareholders makes Rs,0.25 per share (31 March 2015:Rs, 0.10 per share).

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.

Notes:

(a) Term loan from a Financial Institution is secured by First pari-passu charge on the fixed assets (both present and Future) pertaining to the Paper plants at Hmlai & Brajrajnagar and carries interest @ 12.05% p.a. (31 March 2015:12.50 % p.a.) and is repayable in 20 equal quarterly installments starting From 28 June, 2014 (upto 28 March, 2019).

(b) Term loan From Banks are secured by first pari-passu charge on the fixed assets (both present and Future) pertaining to the Paper plants at Hmlai & Brajrajnagar.Term loan of Rs, 5735.29 lackhs carries interest @11.10 % p.a (31 March 2015:11.50% p.a.) and C5000 lackhs carries interest @ 10.55% p.a. (31 March 2015: nil). The above loans are repayable in 17 equal quarterly instalments starting From 28 May, 2015 and 20 unequal quarterly instalments starting From 08 May, 2018 respectively, (upto 28 May, 2019 and 8 February, 2023 respectively)

1. Long-term borrowings (contd.)

(c) Term loan from others is secured by pari-passu First charge on the fixed assets (both present and future) pertaining to the Paper plants at Rmlai and Brajrajnagar and carries interest @11.00% p.a. (31 March 2015: nil) and is repayable in 16 equal quarterly instalments starting from 21 March, 2017 (upto 21 December, 2020).

(d) Finance lease obligation is secured against the plant & machinery taken on lease. The gross investments in lease, i.e. lease obligation plus interest, is payable in 117 monthly installments of Rs, 13.50 lackhs each.

Provision for warranties

R provision is recognized for expected warranty claims on products based on management estimate of present obligation in this regard during the warranty period, computed on the basis of past experience of levels of repairs and returns. It is expected that the entire provision will be utilized within two years of the Balance Sheet date, since the warranty period is generally for one or two years. The table below gives information about movement in warranties provisions.

notes:

1. Cash credit (including Working CapitaiDemand Loans) from banks are secured against hypothecation of stock in trade, stock in progress, ram materials, stores and chemicals, book debts and other current assets of the Company and second charge on fixed assets pertaining to the Paper plants at female& Brajrajnagar of the Company and are repayable on demand. The above loans carry interest @ 9.75% p.a. to 10.80% p.a. (31 March 2015:10.25 % p.a. to 11.35% p.a)

2. Loan from Others is secured against pledge of shares held as investments in Century Textiles & Industries Limited by the Company and carries interest @ 10.50% p.a.(31 March 2015:11.25% ) and is repayable on 16 August, 2016.

3. Unsecured Term Loans from a Bank / Others carry interest @ 9.80% to 10.90% p.a.(31 March 2015 :10.25% to 11.00%) and are repayable in 90 days to 366 days .

4. Buyers Credit carries interest @ 0.86 % to 1.18% (31 March 2015 0.86 % p.a. to 1.16 % ) p.a and is repayable in 90 days .

a. Includes assets held in Joint Ownership Rs,1,344.72 lackhs (31 March 2015, Rs,1,344.72 lackhs), which have been charged against the amount payable as rent for the land and proportionate share of expenses.

b. Includes Rs,79.87 lackhs (31 March 2015, Rs, 79.87 lackhs) in respect of hats whose registration in the Company''s name is pending.

c. Includes depreciation Rs,188.64 lackhs (31 March 2015:Rs,197.06 lackhs) on assets at Brajrajnagar unit, where manufacturing operations were not carried on during the year.

d. Land, Buildings and Plant & Equipments of the Paper units at Hmlai & Brajrajnagar, Rir Conditioning unit at Kolkata and land at Faridabad unit of the Company were revalued in earlier years and the resultant surplus thereon was transferred to Revaluation Reserve.

e. Includes plant and equipment taken on finance lease gross block of Rs,800 lackhs (31 March 2015:Rs, nil) and net block Rs, 787.33 lackhs (31 March 2015: Rs, nil)

a) The Company along with other co-owners, has developed a pltoof land and constructed a building thereon at 25, Barakhamba Road, Hew Delhi, where the Company''s share is 15%. The registration of the said pltoof land of value Rs, 432.94 lackhs (31 March 2015: Rs,432.94 lackhs) in the name of the Company is still pending.

b) Government Securities of Face Value Rs, 0.90 lackhs (31 March 2015:C0.90 lackhs) are lodged with Government Departments as Security Deposits.

c) Pledged as security against short term loans taken (note 8)

2. Gratuity - Defined Benefit Plan

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

The following tables summarize the components of net benefit expense recognized in the statement of profit and loss and the funded status and amounts recognized in the balance sheet for the plan.

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

The overall expected rate of return on assets is determined based on the market prices prevailing on that date, applicable to the period over which the obligation is to be settled.

3. Leases

Finance lease: company as lessee

The company has a finance lease contract for plant and machinery. This lease has terms of renewal and bargain purchase option. However, there is no escalation clause. Each renewal is at the option of lessee. Future minimum lease payments (MLP) under finance leases together with the present value of the net MLP are as follows:

Operating lease: Company as lessee

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

Operating lease: Company as lessor

The Company has leased out certain buildings on operating leases. The lease term is for 1-3 years and thereafter renewable. There is escalation clause in the lease agreements. The rent is not based on any contingencies. There are no restrictions imposed by lease arrangements. The leases are cancellable.

4. Interest in a joint venture

The Company has 29.34% share of interest valuing Rs, 413.92 lackhs in its Joint Venture Company namely Pan African Paper Mills (EH) Limited, Kenya which is engaged in the manufacturing of Paper.

The Company has ceased to have joint control over the above Joint Venture Company subsequent to suspension of operations from 30th January, 2009 and in view of the circumstances arising thereafter. Accordingly, no disclosure for interest in said Joint Venture asset, liabilities, income, expenses etc. have been made in these accounts.

5. Segment information

The primary segment reporting format is determined to be business segments as the company''s risks and rates of return are affected predominantly by differences in the products and services produced. Secondary information is reported geographically. The operating businesses are organized and managed separately according to the nature of the products and services provided, with each segment representing a strategic business unit that offers different products and serves different markets. Accordingly, the Company has identified "Paper" and "Electrical Consumer Durables" as the business segments.

Paper - Consists of manufacture and sale of pulp, paper & board and chemicals.

Electrical Consumer Durables - Consists of manufacture / purchase and sale of Electric Fans - ceiling, portable and airflow, along with Components and Accessories thereof, Lights & Luminaries, Appliances & Switchgears.

Others - Consist of other miscellaneous business/services comprising less than 10% revenues.

The Company primarily operates in India and therefore the analysis of geographical segments is demarcated into its Indian and Overseas Operations.

# represents trade receivable

note: The Company has common fixed assets For producing goods For domestic and overseas markets. Hence, separate figures For fixed assets / additions to fixed assets have not been Furnished.

* net of excise duty.

** Excluding Rs ,21.20 lackhs (31 March 2015, Rs, 4.43 lackhs) being unallocated corporate/other assets.

*** Excluding Rs, 57.81 lackhs (31 March 2015, Rs, 62.61 lackhs) on unallocated corporate/other assets.

6. In October 1963, the paper division of the Company had applied to the Public Work Department (Irrigation) of the Madhya Pradesh State Government for drawing water without any charge from Some River upto 1165 Million Cubic Feet (MCF) with the provision for increase upto 2500 MCF on full development of paper mill, the permission for which was granted by the State Government. In August 2000, the Madhya Pradesh State Government issued a notification and decided to levy charges on water consumption from river resources for industrial purposes with retrospective effect from June, 1998, the constitutional validity of which was challenged by the Company by way of a writ petition in the High Court of Madhya Pradesh. During the pendency of the said writ petition, the Water Resource Department (WRD) of the State Government started raising the bill for consumption of water on the basis of assumption of total quantum of water allowed to be drawn by the Company at 2500 MCF whereas, as per the Company, the quantum of water allowed to be drawn was 1165 MCF and the Company had never drawn the water even upto the initial quantity of 1165 MCF since it had not attained full development of the paper mill. One of the major reasons for not being able to achieve full development was frequent and perennial shortage of water. Based on an interim order passed by the Madhya Pradesh High Court in the aforesaid writ petition, the Company started paying water charges based on actual consumption of water (less than 1165 MCF), while the WRD of the State Government continued to raise bills on the basis of assumed consumption of 2500 MCF plus interest and penalty thereon. In January 2009, the High Court of Madhya Pradesh upheld the constitutional validity of August 2000 notification. After the aforesaid judgment, the Company paid Rs, 908.47 lackhs being the difference amount between the assumed quantity of 1165 MCF and the actual consumption, while the WRD of the State Government continued to raise the bills on the basis of assumed quantity of water consumption of 2500 MCF till April 2009, when the Company entered into a new agreement with the WRD of the State Government for water consumption of only 440 MCF effective from May 2009. The total balance demand for the aforesaid period amounts to Rs, 47434.91 lackhs (including interest and penalty of Rs, 46021.91 lackhs) as at 31 March 2016, for which no provision has been made in the books. The WRD of the State Government issued a notice for recovery of aforesaid demand in February 2015, against which the Company filed a writ petition in the Madhya Pradesh High Court and obtained an interim stay on the recovery. Also, Madhya Pradesh High Court has set aside demand for penal interest in a similar case for another Company. The Company has been legally advised that it has a fit case for quashing the present demand.

7. Due to inadequacy of profit, remuneration paid / provided to Managing Director of the Company during the years ended 31 March 2015 and 31 March 2016 has exceeded the limit prescribed under section 197 read with schedule V of the Companies Act,2013. The Company has applied to the Central government, for approval of excess remuneration amounting to C.178.19 lackhs for the year ended 31 March 2015 and is in the process of applying for obtaining approval for excess remuneration of Rs,177.70 lackhs for the year ended 31 March 2016.

8. Derivative instruments and unmerged foreign currency exposure

Particulars of unmerged foreign currency exposure as at the reporting date

(i) Trade Receivables Rs, 3199.77 lackhs (USD 34.71 lackhs) ,(HKD 104.91 lackhs), (Euro O.Ol.lackhs) [31 March 2015 Rs, 3169.78 lackhs (USD 50.51 lackhs)]. (HKD nil), ( Euro 0.18 lackhs).

(ii) Trade Payables Rs, 2304.80 lackhs (USD 19.84 lackhs), (Euro 11.68 lackhs)& (JPY 167.98 lackhs) [ 31 March 2015 Rs, 1766.21 lackhs (USD 14.59 lackhs),(Euro 11.71 lackhs ) (JPY 109.38 lackhs )].

(iii) Buyers Credit C626.72 lackhs (USD 9.42 lackhs) [ 31 March 2015 Rs, 619.03 lackhs (USD 9.87 lackhs)].

Excluding Directorships in private limited companies, foreign companies and section 8 companies.

Includes the membership/chairmanship only of Audit Committee(s) and Stakeholders'' Relationship Committee(s).

# appointed as Independent Directors of the Company for a term of 5 years w.e.F. 22nd July 2014.

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Mar 31, 2015

1. Corporate information

Orient Paper & Industries Ltd. (the Company) is a public Company domiciled in India. Its shares are listed on national and Bombay Stock exchanges in India. The Company is primarily engaged in manufacture & sale of Paper, Electrical Consumer Durables, Chemicals, Industrial Blowers and Air Pollution Control Equipments. The Company presently has manufacturing facilities at fimlai, Brajrajnagar, Faridabad, noida & Kolkata.

2. Basis of preparation

The financial statements of the Company have been prepared in accordance with generally accepted accounting principles in India (Indian GAAP). The Company has prepared these financial statements to comply in all material respects with the accounting standards notified under section 133 of the Companies Act 2013, read together with paragraph 7 of the Companies (Accounts) Rules 2014. The financial statements have been prepared on an accrual basis and under the historical cost convention.

The accounting policies adopted in the preparation of financial statements are consistent with those of previous year, except for the change in accounting policy explained below.

3 Terms/ rights attached to equity shares

The Company has only one class of equity shares having a par value of Rs.1 per share. Each holder of equity shares is entitled to one vote per share. The Company declares and pays dividends in Indian rupees. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting.

During the year ended 31 March 2015, the amount of per share dividend recognized as distributions to equity shareholders was Rs.0.10 per share (31 March 2014: Rs.0.10 per share).

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.

4 (a) Term loan from a Financial Institution is secured by first pari-passu charge on the fixed assets (both present and future) pertaining to the Paper plants at Amlai & Brajrajnagar and carries interest @ 12.50% p.a. (31st March 2014: 13% p.a.) and is repayable in 20 equal quarterly installments starting from June 28, 2014.

(b) Term loan from a Bank is secured by first pari-passu charge on the fixed assets (both present and future) pertaining to the Paper plants at Rmlai & Brajrajnagar and carries interest @ 11.50% and is repayable in 17 equal quarterly installments starting from May 28, 2015 .

1. Cash credit / Packing Credit ( including Working Capital Demand Loans) from banks are secured against hypothecation of stock in trade, stock in progress, raw materials, stores and chemicals, book debts and other current assets of the Company and second charge on fixed assets of the Company and are repayable on demand. The above loans carry interest @ 10.25% p.a. to 11.35% p.a. (31st March 2014 10.50 % p.a. to 11.10% p.a)

2. Secured loan from Others is secured against pledge of shares held as investments by the Company. The above loan carries interest 11.25% p.a. and is repayable after 180 days.

3. Unsecured Term Loans from Banks / Others carry interest @ 10.25% & 11.00% p.a.(31st March 2014 10.75% & 11.50%) and are repayable in 90 days to 180 days .

4. Buyers Credit carries interest @ 0.86 % to 1.16% (31st March 2014 1.13 % p.a. to 1.54 % ) p.a and is repayable after 90 days to 180 days.

5 Gratuity - Defined Benefit Plan

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

The following tables summarize the components of net benefit expense recognized in the statement of profit and loss and the funded status and amounts recognized in the balance sheet for the plan.

Operating lease: Company as lesor

The Company has leased out certain buildings on operating leases. The lease term is for 1-3 years and thereafter renewable. There is escalation clause in the lease agreements. The rent is not based on any contingencies. There are no restrictions imposed by lease arrangements. The leases are cancelable.

6 Interest in a joint venture

The Company has 29.34% share of interest valuing Rs.413.92 lacs in its Joint Venture Company namely Pan African Paper Mills (EA) Limited, Kenya which is engaged in the manufacturing of Paper.

The Company has ceased to have joint control over the above Joint Venture Company subsequent to suspension of operations from 30th January, 2009 and in view of the circumstances arising thereafter. Accordingly, no disclosure for interest in said Joint Venture asset,liabilities, income, expenses etc. have been made in these accounts.

7 Segment information

The primary segment reporting format is determined to be business segments as the company''s risks and rates of return are affected predominantly by differences in the products and services produced. Secondary information is reported geographically. The operating businesses are organized and managed separately according to the nature of the products and services provided, with each segment representing a strategic business unit that offers different products and serves different markets. Accordingly, the Company has identified "Paper" and "Electrical Consumer Durables" as the business segments.

Paper - Consists of manufacture and sale of pulp, paper & board and chemicals.

Electrical Consumer Durables - Consists of manufacture / purchase and sale of Electric Fans - ceiling, portable and airflow, along with Components and Accessories thereof, Lights & Luminaries, Appliances & Switchgears.

Others - Consist of other miscellaneous business/services comprising less than 10% revenues.

The Company primarily operates in India and therefore the analysis of geographical segments is demarcated into its Indian and Overseas Operations.

8 Related party disclosures

names of related parties and related party relationship

Related parties with whom transactions have taken place during the year

Associate Central India & IndustriesLtd

Key management Mr. M.L. Pachisia (Managing director) personnel Mr. P K. Sonthalia (President Finance & CFO) (w.e.f. 1st April,2014)

Mr. Rakesh Khanna (w.e.f. 1st December 2014)

Mr. Manoj Verma (upto 31st July 2014 )

Mr. Ajay Gupta (w.e.f.4th February 2015)

Mr. n. K. Saha (upto 3rd February2015 )

Mr. B.S. Gilra

Mr. S.B. Bhaiya (upto 2nd April 2013)

Mr. R.P.Dutta (Company Secretary) (w.e.f.1st Hpril,2014)

Enterprises owned or Origami Products significantly influenced by key Origami management personnel or their relatives Origami Tissues

Origami Ventures

Origami Cellulo Pvt Ltd

Origami Enterprises

9 Capital and other commitments

(a) Estimated amount of contracts remaining to be executed on Capital Account and not provided for (net of advances) Rs.353.20 lacs (31 March 2014: Rs.1482.26 lacs).

(b) For commitments relating to lease arrangements, please refer note 29.

10 Contingent liabilities Rs. In lacs

a) Outstanding bank 1,476.59 1,527.13 guarantees

b) Bills Discounted under 2,278.02 2,276.69 channel finance facilities

c) Demands/claims by various Government authorities and others not acknowledged as debts and contested by the Company:(*)

Excise Duty 1,741.90 1,588.30

Sales Tax 547.30 505.96

Income Tax 163.53 24.89

Water Tax 6,496.46 5,086.23

Cess on Captive Power consumption 4,377.63 3,625.66

Krishi Upaj Mandi Fees 1,229.56 1,229.56

Others 2,983.73 2,892.63

17,540.11 14,953.23

Against the above, payments have been 639.24 631.53 made under protest and/ or debts have been withheld by respective parties.

(*) Based on discussions with the solicitors/ favorable decisions in similar cases/legal opinions taken by the Company, the management believes that the Company has a good chance of success in above-mentioned cases and hence, no provision there against is considered necessary.

d) Outstanding claims from employees Amount unascertainable not acknowledged as debts, including Bonus

claims under adjudication and wages for suspension period at Brajrajnagar Unit.

11 In October 1963, the paper division of the Company had applied to the Public Work Department (Irrigation) of the Madhya Pradesh State Government for drawing water without any charge from Sone River upto 1165 Million Cubic Feet (MCF) with the provision for increase upto 2500 MCF on full development of paper mill, the permission for which was granted by the State Government. In August 2000, the Madhya Pradesh State Government issued a notification and decided to levy charges on water consumption from river resources for industrial purposes with retrospective effect from June, 1998, the constitutional validity of which was challenged by the Company by way of a writ petition in the High Court of Madhya Pradesh. During the pendency of the said writ petition, the Water Resource Department (WRD) of the State Government started raising the bill for consumption of water on the basis of assumption of total quantum of water allowed to be drawn by the Company at 2500 MCF whereas, as per the Company, the quantum of water allowed to be drawn was 1165 MCF and the Company had never drawn the water even upto the initial quantity of 1165 MCF since it had not attained full development of the paper mill. One of the major reasons for not being able to achieve full development was frequent perennial shortage of water. Based on an interim order passed by the Madhya Pradesh High Court in the aforesaid writ petition, the Company started paying water charges based on actual consumption of water (less than 1165 MCF), while the WRD of the State Government continued to raise bills on the basis of assumed consumption of 2500 MCF plus interest and penalty thereon. In January 2009, the High Court of Madhya Pradesh upheld the constitutional validity of August 2000 notification. After the aforesaid judgement, the Company paid Rs. 908.47 lacs being the difference amount between the assumed quantity of 1165 MCF and the actual consumption, while the WRD of the State Government continued to raise the bills on the basis of assumed quantity of water consumption of 2500 MCF till April 2009, when the Company entered into a new agreement with the WRD of the State Government for water consumption of only 440 MCF effective from May 2009. The total balance demand for the aforesaid period amounts to Rs. 37,248.55 lacs (including interest and penalty of Rs. 35,835.62 lacs) as at 31st March 2015, for which no provision has been made in the books. The WRD of the State Government issued a notice for recovery of aforesaid demand in February 2015, against which the Company filed a writ petition in the Madhya Pradesh High Court and obtained an interim stay on the recovery. Also, Madhya Pradesh High Court has set aside demand for penal interest in a similar case for another Company. The Company has been legally advised that it has a fit case for quashing the present demand.

12 (a) Reappointment of Managing Director with effect from 23rd September 2014 and remuneration of Rs.178.19 lacs paid during the year ended 31st March, 2015 as in excess of the limit prescribed under Schedule V of the Companies Act, 2013 is subject to approval of the Central Government.

(b) Similarly, reappointment of Managing Director with effect from 23rd September 2013 and remuneration of Rs.203.54 Lacs paid during the year ended 31st March, 2014 as in excess of the limit prescribed under Schedule XIII of the Companies Act, 1956 is subject to approval of the Central Government.

13 Trade Payable, Payable against Purchase of Fixed Assets and Statutory Dues includes Rs.244.71 lacs, Rs.387.31 lacs and Rs.977.55 lacs respectively In respect of cases where litigations are pending.

14 Derivative instruments and unhedged foreign currency exposure

(a) Derivative instrument not for trading or speculation but as hedge of underlying transaction, outstanding as on the Balance Sheet date:-

(i) Forward contracts to sell US$ nil (US$ 15 lacs) to hedge foreign currency sales.

(b) Particulars of unhedged foreign currency exposure as at the reporting date

(i) Trade Receivables Rs.3169.78 lacs (USD 50.51 lacs) ,(Euro 0.18.lacs) [31st March 2014 Rs.3549.43 lacs (USD 59.06 lacs)]. (Euro nil).

(ii) Trade Payables Rs.1766.21 lacs (USD 14.59 lacs), (Euro 11.71 lacs)& (JPY 109.38 lacs) [31st March 2014 Rs.771.76 lacs (USD 12.84 lacs), (Euro nil )(JPY nil)].

(iii) Buyers Credit Rs.619.03 lacs (USD 9.87 lacs) [ 31st March 2014 Rs.1182.82 lacs (USD 19.68 lacs)].

15 Previous year figures

Previous year''s figures have been regrouped and rearranged wherever necessary

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Mar 31, 2014

1. Cosh credit / Pocking Credit (including Working Copitol Demond Loons) Prom bonks is secured / to be secured ogoinst hypothecotion of stock in trade, stock in progress, row moteriols, stores ond chemicols, book debts ond other current ossets of the Compony ond second chorge on fixed ossets of the Compony ond is repoyoble on demond. The obove loons corries interest @ 10.50% p.o. to 11.10% p.o. (9.95 % p.o. to 12.30% p.o)

2. Term Loons from Bonks / Others corry interest @ 10.75% & 11.50% p.o. ond ore repoyoble in 89 doys & 180 doys respectively.

3. Buyers Credit corries interest @ 1.13% to 1.54% (1.52 % p.o. to 2.32 %) p.o ond is repoyoble in 180 doys.

a. Includes assets held in Joint Ownership Rs.1,344.72 lacs (31st March 2013, Rs.1341.20 lacs), which have been charged against the amount payable as rent tor the land and proportionate share ot expenses.

b. Includes assets held in Joint Ownership Rs.20.00 lacs (31st March 2013, Rs.20.00 lacs).

c. Includes Rs.79.87 lacs (31st March 2013, Rs.79.87 lacs) in respect ot tlats whose registration in the Company''s name is pending.

d. Land, Buildings and Plant & Equipments ot the Paper units at Hmlai & Brajrajnagar, Hir Conditioning unit at Kolkata and land at Faridabad unit ot the Company were revalued in earlier years and the resultant surplus thereon was transferred to Revaluation Reserve.

e. Capitalized borrowing costs

The borrowing cost capitalized during the year ended 31 March 2014 is Rs.nil (31 March 2013: Rs.1035.60 lacs). The Company has capitalized this borrowing cost in the Capital work-in-progress (CWIP) and Expenditure on Expansion/new Projects. The amount ot borrowing cost shown as Other Hdjustments above reflects the amount of borrowing cost transferred from CWIP and Expenditure on Expansion / new Projects.

f. Includes depreciation Rs.218.22 lacs (31st March 2013: Rs.233.96 lacs) on assets at Brajrajnagar unit, where manufacturing operations were not carried on during the year.

a) Government Securities of the Foce Volue of Rs.0.90 loc (31 Morch 2013: Rs.0.90 loc) ore lodged with Government Deportments os Security Deposits.

b) The Compony olong with other co-owners, hos developed o plot of lond ond constructed o building thereon ot 25, Borokhombo rood, new Delhi, where the Compony''s shore is 15%. The registration of the soid plot of lond of the volue of Rs.432.94 Iocs (31 Morch 2013: Rs.432.94 Iocs) in the nome of the Compony is still pending.

* includes Rs.277.34 Iocs (31st March 2013 Rs. nil) in respect of earlier years.

# Excise duty on sales amounting to Rs.11,487.17 lacs (31 March 2013: Rs.11,653.46 lacs) has been reduced Prom sales in statement of profit & loss and excise duty on increase/ (decrease) in stock amounting to Rs.166.23 lacs (31 March 2013: Rs.3449 lacs) has been considered as (income)/expense in note 22 of financial statements.

4. Gratuity - Defined Benefit Plan

The Company has a defined benefit gratuity plan. Every employee mho has completed at least five years or more of service is entitled to Gratuity on terms not less favorable than the provisions of The Payment of Gratuity Hct, 1972. The scheme is funded with an insurance company in the form of qualifying insurance policy.

The following tables summarize the components of net benefit expense recognized in the statement of profit and loss and the funded status and amounts recognized in the balance sheet for the plan.

Statement oF profit and loss

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

The overall expected rate of return on assets is determined based on the market prices prevailing on that date, applicable to the period over which the obligation is to be settled. There has been significant change in expected rate of return on assets due to change in the market scenario.

* The management has relied on the overall actuarial valuation conducted by the actuary. However, experience adjustments on plan liabilities and assets are not readily available tor the year 2009-10 and hence not disclosed.

5.Leases

Operating lease: Company as lessee

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

Operating lease: Company as lesor

The Company has leased out certain buildings on operating leases. The lease term is for 1-3 years and thereafter renewable. There is escalation clause in the lease agreements. The rent is not based on any contingencies. There are no restrictions imposed by lease arrangements. The leases are cancelable.

6. Interest in a joint venture

The Company has 29.34% share of interest valuing Rs.413.92 lacs in its Joint Venture Company namely Pan Hfrican Paper Mills (EH) Limited, Kenya which is engaged in the manufacturing of Paper.

The Company has ceased to have joint control over the above Joint Venture Company subsequent to suspension of operations from 30th January, 2009 and in view of the circumstances arising thereafter. Accordingly, no disclosure for interest in said Joint Venture asset, liabilities, income, expenses etc. have been made in these accounts.

7. Segment information

The primary segment reporting format is determined to be business segments as the company''s risks and rates of return are affected predominantly by differences in the products and services produced. Secondary information is reported geographically. The operating businesses are organized and managed separately according to the nature of the products and services provided, with each segment representing a strategic business unit that offers different products and serves different markets. Accordingly, the Company has identified "Paper" and "Electrical Consumer Durables" as the business segments.

Paper - Consists of manufacture and sale of pulp, paper & board and chemicals.

Electrical Consumer Durables - Consists of manufacture / purchase and sale of Electric Fans - ceiling, portable and airflow, along with Components and Accessories thereof, lights & luminaries and Appliances.

Others - Consist of other miscellaneous business/services comprising less than 10% revenues.

The Company primarily operates in India and therefore the analysis of geographical segments is demarcated into its Indian and Overseas Operations.

# Represents trade receivable

note: The Company has common fixed assets for producing goods for domestic and overseas markets. Hence, separate figures for fixed assets / additions to fixed assets have not been furnished.

* net of excise duty.

** Excluding Rs.21.50 lacs (31st March 2013, Rs.42.74 lacs) being unallocated corporate/other assets. *** Excluding Rs.65.82 lacs (31st March 2013, Rs.55.79 lacs) on unallocated corporate/other assets.

8. Related party disclosures

Names oF related parties and related party relationship

Related parties with whom transactions have taken place during the year

Associate : Central India & IndustriesLtd

Key management personnel :

Mr. Mi. Pachisia (Managing director) Mr. Manoj Verma Mr. n. K. Saha Mr. V. Kishore(uptol6thRpril,2012) Mr. B.S.Cilra Mr. 5. B. Bhaiya (upto 2nd Rpril, 2013)

Enterprises owned or significantly influenced by key management personnel or their relatives :

Origami Products Origami Origami Tissues Origami Ventures Origami Cellulo Pvt Ltd OrigamieNTERPRISES

9. Capital and other commitments

(a) Estimated amount of contracts remaining to be executed on Capital Recount and not provided tor (net of advances) Rs.1,482.26 lacs (31 March 2013: Rs.175.27 lacs).

(b) For commitments relating to lease arrangements, please refer note 29

10. Contingent liabilities RsIn lacs 31-Mar-14 31-Mar-13 a) Outstanding bank guarantees 1,527.13 948.34

b) Demands/claims by various Government authorities and others not acknoiuledged as debts and contested by the Company: (*)

Excise Duty 1,588.30 1,523.18

Sales Tax 505.96 595.73

Income Tax 24.89 2,729.77

Water Tax 5,086.23 3,976.40

Cess on Captive Power consumption 3,625.66 2,989.27

Bills Discounted under channel finance facilities 2,276.69 1,083.88

Others 4,122.19 3,204.00

17,229.92 16,102.23

Hgainst the above, payments have been made under protest and/ or debts have been 613.46 702.73

withheld by respective parties.

(*) Based on discussions with the solicitors/ favorable decisions in similar cases/legal opinions taken by the Company, the management believes that the Company has a good chance of success in above-mentioned cases and hence, no provision there against is considered necessary.

c) Outstanding claims from employees not acknowledged as debts, including Bonus Amount unascertainable claims under adjudication and wages for suspension period at Brajrajnagar Unit.

d) The Company has filed a writ petition in the High Court of Jabalpur, contesting the order of Commissioner Commercial Tax in the case of IOC Ltd regarding taxability of furnace oil at par with diesel. Pending final disposal of this matter, the Company is unable to ascertain the impact of the order, if any, on the accounts of the Company.

11. Water Tax demand received from the Water Resources Department of the Government of Madhya Pradesh has been paid/ provided to the extent of liability admitted by the Company for the period up to Hpril, 2009 i.e. the period prior to new agreement (effective from May 2009) entered into with the Water Resource Department, no provision against the balance demand of Rs.35,908.15 lacs (including compounded interest and penalty) has been made since the Company''s application for waiver thereof is under consideration by the government of Madhya Pradesh.

12. Reappointment of Managing Director with effect from 23rd September 2013 and remuneration of Rs.203.54 Lacs paid during the year ended 31st March, 2014 in excess of the limit prescribed under Schedule XIII of the Companies Hct, 1956 is subject to approval of the Central Government.

13. Derivative instruments and unhedged foreign currency exposure

(a) Derivative instrument not For trading or speculation but as hedge oF underlying transaction, outstanding as on the Balance Sheet date:-

(i) Forward contracts to sell U5$ 15 lacs (nil) to hedge Foreign currency sales.

(b) Particulars oF unhedged Foreign currency exposure as at the reporting date

(i) Foreign Currency Trade Receivables and Trade Payables aggregating to Rs.354943 lacs (USD 59.06 lacs) [Rs.1,927.72 lacs (USD 35.44 lacs) and Rs.771.76 lacs (USD 12.84 lacs) [Rs.68340 lacs (USD 12.56 lacs)] respectively.

(ii) Buyers Credit USD182.82 lacs (USD 19.68 lacs) [Rs.1,34745 lacs (USD 24.77 lacs)].

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Mar 31, 2013

1. corporate information

Orient Paper & Industries Ltd. (the Company) is a public Company domiciled in India and incorporated under the provisions of the Companies Act, 1956. Its shares are listed on two stock exchanges in India. The Company is primarily engaged in manufacture & sale of Paper, Electrical Consumer Durables, Chemicals, Industrial Blowers and Air Pollution Control Equipments. The Company presently has manufacturing facilities at Amlai, Brajrajnagar, Faridabad & Kolkata. The Cement Undertaking of the Company has been transferred to Orient Cement Limited on going concern basis w.e.f. April 01, 2012 pursuant to the scheme of arrangement approved by the Hon''ble Orissa High Court,

2. BASIS OF PREPARATION

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

The accounting policies adopted in the preparation of financial statements are consistent with those of previous year.

3. Scheme of arrangement

a) Pursuant to the Scheme of Arrangement ("the scheme") approved by the Hon''ble High Court of Orissa, all the assets and liabilities of the Cement Undertaking of the Company have been transferred to and vested in Orient Cement Limited (Resulting Company) at their respective book values on a going concern basis from 1st April, 2012 being the appointed date.

As per the scheme, appointed date as approved by the Hon''ble High Court is 1st April, 2012 and effective date is 26th February, 2013, being the date on which the certified copy of the order sanctioning the said scheme is filed with the Registrar of Companies, Orissa in accordance with the Companies Act, 1956.

4. GRATURITY- DEFINED BENEFIT PLAN

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

The following tables summarize the components of net benefit expense recognized in the statement of profit and loss and the funded status and amounts recognized in the balance sheet for the plan.

5. LEASES

Operating lease: Company as lessee

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

There are no restrictions imposed by lease arrangements. There are no subleases. The leases are cancelable.

Operating lease: Company as lesor

The Company has leased out certain buildings on operating leases. The lease term is for 1-3 years and thereafter renewable. There is escalation clause in the lease agreements. The rent is not based on any contingencies. There are no restrictions imposed by lease arrangements. The leases are cancelable.

6. INTEREST IN A JOINT VENTURE

The Company has 29.34% share of interest valuing Rs. 413.92 lacs in its Joint Venture Company namely Pan African Paper Mills (EA) Limited, Kenya which was engaged in the manufacturing of Paper.

The Company has ceased to have joint control over the above Joint Venture Company subsequent to suspension of operations from 30th January, 2009 and in view of the circumstances arising thereafter. Accordingly, no disclosure for interest in said Joint Venture asset, liabilities, income, expenses etc. have been made in these accounts.

7. SEGMENT INFORMATION

The primary segment reporting format is determined to be business segments as the Company''s risks and rates of return are affected predominantly by differences in the products and services produced. Secondary information is reported geographically. The operating businesses are organized and managed separately according to the nature of the products and services provided, with each segment representing a strategic business unit that offers different products and serves different markets. Accordingly, the Company has identified "Paper" and "Electrical Consumer Durables" as the business segments.

Paper - Consists of manufacture and sale of pulp, paper & board and chemicals.

Electrical Consumer Durables - Consists of manufacture / purchase and sale of Electric Fans - ceiling, portable and airflow, along with Components and Accessories thereof, lights & luminaries and Appliances.

Others - Consist of other miscellaneous business/services comprising less than 10% revenues.

In addition to above business segments, the Company had Cement business segment till 31st March 2012 which has been demerged w.e.f. 01.04.2012 (refer note 28).

The Company primarily operates in India and therefore the analysis of geographical segments is demarcated into its Indian and Overseas Operations.

8. RELATED PARTY DISCLOSURES

Names of related parties and related party relationship Related parties where control exists

Subsidiary Company Orient Cement Limited (upto 31st March, 2012)

Related parties with whom transactions have taken place during the year

Associate Central India & IndustriesLtd

Key management personnel Mr. M.L. Pachisia (Managing director)

Mr. B. Pandey (upto 31st March, 2012)

Mr. P K Tripathy (upto 31st March, 2012)

Mr. Manoj Verma (From 17th December,2012) Mr. V. Kishore (upto 16th April,2012)

Mr. B.S.Gilra Mr. S. B. Bhaiya

Enterprises owned or significantly influenced by Origami Products key management personnel or their relatives

Origami

Origami Tissues Origami Ventures

9. CAPITAL AND OTHER COMMITMENTS

(a) Estimated amount of contracts remaining to be executed on Capital Account and not provided for (net of advances) Rs. 175.27 lacs (31 March 2012: Rs. 4236.02 lacs).

NOTE 10.

Water Tax demand received from the Water Resources Department of the Government of Madhya Pradesh has been paid/provided to the extent of liability admitted by the Company for the period up to April, 2009 i.e. the period prior to new agreement (effective from May 2009) entered into with the Water Resource Department. No provision against the balance demand of Rs.28,030.34 lacs (including compounded interest and penalty) has been made since the Company''s application for waiver thereof is under consideration by the government of Madhya Pradesh.

NOTE 11.

Remuneration of Rs.187.70 Lacs paid to Managing Director during the year ended 31st March, 2013 in excess of the limit prescribed under Schedule XIII of the Companies Act, 1956 is subject to approval of the Central Government.

12. Derivative instruments and unhedged foreign currency exposure

(a) Derivative instrument not for trading or speculation but as hedge of underlying transaction, outstanding as on the Balance Sheet date:-

(i) Forward contract in respect of foreign currency trade receivables of USD NIL (USD 2.65 million).

(ii) Cross Currency Swap of JPY/INR Nil (Rs.841.95 lacs ) and Nil (Rs.302.39 lacs) in respect of loan with interest rate @

6 months JPY Libor plus 1.5% vis- a- vis fixed rate of 8.35% and 8.25% respectively.

(iii) Cross Currency Swap of USD/INR Nil (Rs.9,470 Lacs) in respect of loan with interest rate @ 3 months USD Libor plus 2.5% vis- a- vis fixed rate of 8.50% .

(b) Particulars of unhedged foreign currency exposure as at the reporting date

Foreign Currency Trade Receivables (including advances) and Trade Payables aggregating to Rs. 1,927.72 lacs (Rs.498.44 lacs) and Rs.683.40 lacs (Rs. 233.31 lacs ) respectively.

Buyers Credit Rs. 1,347.45 lacs ( Rs. 618.48 lacs).

Loans and advances in the nature of loans given to subsidiaries and associates and firms/ companies in which directors are interested and which are outstanding at the end of the year in terms of Securities and Exchange Board of India''s circular dated January 10, 2003

13. REVIOUS YEAR FIGURES

Previous year''s figures have been regrouped and rearranged wherever necessary. Further, the previous year figures being inclusive of figures of Cement undertaking of the Company which has been demerged w.e.f. 1st April, 2012 (pursuant to a scheme of arrangement refer note 28), are not comparable with the current year''s figures.

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Mar 31, 2012

Notes-01[CORPORATE INFORMATION

Orient Paper & Industries Ltd. (the Company) is a public Company domiciled in India and incorporated under the provisions of the Companies Act, 1956. Its shares are listed on two stock exchanges in India. The Company is primarily engaged in manufacture & sale of Cement, Paper, Electrical Consumer Durables, Chemicals, Industrial Blowers and Air Pollution Control Equipments. The Company presently has manufacturing facilities at Devapur, Jalgaon, Amlai, Brajrajnagar, Faridabad & Kolkata.

Notes-02-BASIS OF PREPARATION

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

The accounting policies adopted in the preparation of financial statements are consistent with those of previous year, except for the change in accounting policy explained in 2.1 (a) below.

(a) Terms/ rights attached to equity shares

The Company has only one class of equity shares having a par value of Rs.1 per share. Each holder of equity shares is entitled to one vote per share. The Company declares and pays dividends in Indian rupees. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting.

During the year ended 31 March 2012, the amount of per share dividend recognized as distributions to equity shareholders was Rs. 2.00 including interim dividend of Rs.1.00 per share (31 March 2011: Rs.1.50).

(b) Terms of Redeemable Non-Cumulative Preference Shares

Redeemable non-cumulative preference shares issued in earlier years have been redeemed during the year which carried dividend @6% p.a. The Company declares and pays dividends in Indian rupees. The dividend proposed by the Board of Directors upto the date of redemption is subject to the approval of the shareholders in the ensuing Annual General Meeting.

1. 12.45% Non-Convertible Debentures of Rs.10 lacs each are redeemable at par on November 14, 2013 and these Debentures are secured by first mortgage/charge ranking pari-passu with each other on the moveable and immovable properties pertaining to the Paper Plants at Amlai and Brajrajnagar and Cement plants at Devapur and Jalgaon and a first charge on the Company's freehold land at Mehsana, Gujarat.

2. (a) Term Loans of Rs. 1,144.34 lacs (31st March 2011 Rs. 2,288.69 lacs) carry interest @ 8.25% to 8.35%. The loans are repayable in 6 half yearly installments starting from 31st July, 2009 and ending on 31st July, 2012. The loans are secured by first charge ranking pari-passu with each other on the immovable properties ( both present and future ) pertaining to the Paper plants at Amlai and Brajrajnagar and Cement plant at Devapur and by way of hypothecation of moveable fixed assets (both present and future) ranking pari passu with each other, pertaining to the Paper plants at Amlai and Brajrajnagar and Cement plant at Devapur.

(b) Term Loan of Rs.9,470 lacs (31st March 2011 Rs. 9,470 lacs) carries interest @ 8.50% which is repayable in two equal installments payable on 27th May, 2012 and 27th August, 2012 and term Loan of Rs. 1,664 lacs (31st March 2011 Rs. 3,332 lacs) carries interest @ 8.90% which is repayable in 12 quarterly installments of Rs. 417 lacs each, starting from 30th June, 2010. These loans are secured by first charge ranking pari-passu with each other on the fixed assets (both present and future) pertaining to the Paper plants at Amlai and Brajrajnagar and Cement plants at Devapur and Jalgaon.

3. Deferred sales tax loan is interest free and is payable in 26 installments between February, 2012 to January, 2023.

Provision for Mining Restoration Costs

The activities at the cement unit involve mining of land taken under lease. In terms of relevant statutes, the mining areas would require restoration at the end of the mining lease. The future restoration expenses are affected by a number of uncertainties, such as, technology, timing etc. As per the requirement of Accounting Standard -29, the management has estimated such future expenses on best judgment basis and provision thereof has been made in the accounts. The table below gives information about movement in mining restoration cost provisions.

1. Cash credit from banks is secured / to be secured against hypothecation of stock in trade, stock in progress, raw materials, stores and chemicals, book debts and other current assets of the Company and second charge on fixed assets of the Company. The cash credit is repayable on demand and carries interest @ 10.90% p.a. to 14.90% p.a. ( 10.70% p.a. to 13.15% p.a.)

2. Commercial papers from banks & others carry interest @ 10.25% p.a. to 10.65% p.a and are repayable between a period of 84 days to 172 days.

3. Buyers Credit carry interest @ 3.51% p.a. to 4.31% p.a and is repayable in 180 days.

a. Includes assets held in Joint Ownership with others Rs.1,342.83 lacs (31st March 2011, Rs.191.47 lacs), which have been charged against the amount payable as rent for the land and proportionate share of expenses.

b. Includes Rs.2,766.00 lacs (31st March 2011, Rs.1,866.53 lacs) and Rs.79.87 lacs (31st March 2011, Rs.79.87 lacs) in respect of land and flats respectively whose registration in the Company's name is pending.

c. Land, Buildings and Plant & Equipments of the Paper units at Amlai & Brajrajnagar, Cement unit at Devapur, Air Conditioning unit at Kolkata and land at Faridabad unit of the Company were revalued in earlier years and the resultant surplus thereon was transferred to Revaluation Reserve.

d. Capitalized borrowing costs

The borrowing cost capitalized during the year ended 31 March 2012 was Rs.1,020.63 lacs (31 March 2011: Rs.594.61 lacs). The Company has capitalized this borrowing cost in the Capital work-in-progress (CWIP) and Expenditure on Expansion/New Projects. The amount of borrowing cost shown as Other Adjustments above reflects the amount of borrowing cost transferred from CWIP and Expenditure on Expansion / New Projects.

e. Includes depreciation Rs.275.42 lacs (31st March 2011: Rs.292.63 lacs) on assets at Brajrajnagar unit, where manufacturing operations were not carried on during the year.

a) Government Securities of the Face Value of Rs.0.65 lac (31 March 2011: Rs.0.65 lac) are lodged with Government Departments as Security Deposits.

b) The Company alongwith other co-owners, has developed a plot of land and constructed a building thereon at 25, Barakhamba road, New Delhi, where the Company's share is 15%. The registration of the said plot of land of the value of Rs.432.94 lacs (31 March 2011: Rs.432.94 lacs) in the name of the Company is still pending.

Notes-3 DISCONTINUING OPERATION

The Company's Board of Directors at its meeting held on July 27, 2011 has approved a scheme of arrangement to demerge the cement undertaking of the Company by transferring the same on a going concern basis to a newly formed wholly owned subsidiary namely Orient Cement Ltd. w.e.f 1st April, 2012 subject to approval of court and shareholders.

The Company has filed the scheme with Hon'ble High Court of Orissa. The above cement division is a separate segment as per AS-17, Segment Reporting.

Notes-4-

Orient Cement Ltd. (OCL) was formed during the year as a subsidiary of the Company for the purpose of transfer of Company's Cement business w.e.f 1st April, 2012 as per the scheme of arrangement as stated in note no. 28 above subsequent to all regulatory approvals and compliances. After necessary approvals, shares held by the Company in the said subsidiary will stand cancelled in terms of scheme of arrangement. In view of above, the Company has not prepared Consolidated Financial Statements in terms of paragraph 11 of the Accounting Standard 21 'Consolidated Financial Statements', OCL being the only Subsidiary Company held by the Company.

Notes-5 GRATUITY - DEFINED BENEFIT PLAN

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

The following tables summarize the components of net benefit expense recognized in the statement of profit and loss and the funded status and amounts recognized in the balance sheet for the plan.

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

The overall expected rate of return on assets is determined based on the market prices prevailing on that date, applicable to the period over which the obligation is to be settled. There has been significant change in expected rate of return on assets due to change in the market scenario.

Notes-6-NTEREST IN A JOINT VENTURE

The Company has 29.34% share of interest valuing Rs. 413.92 lacs in its Joint Venture Company namely Pan African Paper Mills (EA) Limited, Kenya which is engaged in the manufacturing of Paper.

The Company has ceased to have joint control over the above Joint Venture Company subsequent to suspension of operations from 30th January, 2009 and in view of the circumstances arising thereafter. Accordingly, no disclosure for interest in said Joint Venture asset, liabilities, income, expenses etc. have been made in these accounts.

Notes-7

During the year, the Company's Electrical and Consumer Durable Division has implemented SAP system under ERP platform. Accordingly, the Company has changed its method of valuation of inventory of raw materials, packing materials and stores & spares at the said Division from annual weighted average to transaction moving weighted average. This change has resulted in the profit for the year being higher by Rs. 211.47 lacs.

Notes-8 SEGMENT INFORMATION

The primary segment reporting format is determined to be business segments as the company's risks and rates of return are affected predominantly by differences in the products and services produced. Secondary information is reported geographically. The operating businesses are organized and managed separately according to the nature of the products and services provided, with each segment representing a strategic business unit that offers different products and serves different markets. Accordingly, the Company has identified "Paper", "Cement" and "Electrical Consumer Durables" as the business segments.

Paper - Consists of manufacture and sale of pulp, paper & board and chemicals.

Cement - Consists of manufacture and sale of cement.

Electrical Consumer Durables - Consists of manufacture / purchase and sale of Electric Fans - ceiling, portable and airflow, along with Components and Accessories thereof, lights & luminaries and Appliances.

Others - Consist of other miscellaneous business/services comprising less than 10% revenues.

The Company primarily operates in India and therefore the analysis of geographical segments is demarcated into its Indian and Overseas Operations.

Note: The Company has common fixed assets for producing goods for domestic and overseas markets. Hence, separate figures for fixed assets / additions to fixed assets have not been furnished.

* Net of excise duty.

** Excluding Rs. 1079.14 lacs (31st March 2011, Rs. 53.13 lacs) being unallocated corporate/other assets.

*** Excluding Rs. 39.42 lacs (31st March 2011, Rs. 35.13 lacs) on unallocated corporate/other assets.

Notes-9[CAPITAL AND OTHER COMMITMENTS

(a) Estimated amount of contracts remaining to be executed on Capital Account and not provided for (net of advances) Rs. 4,236.02 lacs (31 March 2011: Rs. 13,001.15 lacs).

(b) For commitments relating to lease arrangements, please refer note 32

Notes 10 CONTINGENT LIABILITIES

31st March, 2012 31st March, 2011

a) Outstanding bank guarantees 963.55 702.77

b) Demands/claims by various Government authorities and others not acknowledged as debts and contested by the Company:

Excise Duty 2,068.74 2,125.91

Sales Tax 930.68 931.64

Income Tax 2,730.16 2,875.75

Water Tax 3,102.96 2,416.14

Escot Charges 4,318.60 1,182.60

Others 4,797.39 4,901.28

*17,948.53 14,433.32

Against the above, payments have been made under protest and/ or debts have been withheld by respective parties. 677.74 533.52

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

c) Outstanding claims from employees not acknowledged as debts, including Bonus claims under adjudication and wages for suspension period at Brajrajnagar Unit.

Amount unascertainable

d) The Company has filed a writ petition in the High Court of Jabalpur, contesting the order of Commissioner Commercial Tax in the case of IOC Ltd regarding taxability of furnace oil at par with diesel. Pending final disposal of this matter, the Company is unable to ascertain the impact of the order, if any, on the accounts of the Company.

Notes-11

Water Tax demand received from the Water Resources Department of the Government of Madhya Pradesh has been paid/provided to the extent of liability admitted by the Company for the period upto April, 2009 i.e. the period prior to new agreement (effective from May 2009) entered into with the Water Resource Department. No provision against the balance demand of Rs. 21,879.32 lacs (including compounded interest and penalty) has been made since the Company's application for waiver thereof is under consideration by the government of Madhya Pradesh.

Notes-4l[DERIVATIVE INSTRUMENTS AND UNHEDGED FOREIGN CURRENCY EXPOSURE

(a) Derivative instrument not for trading or speculation but as hedge of underlying transaction, outstanding as on the Balance Sheet date:

i) Forward contract in respect of foreign currency trade receivables of USD 2.65 million (USD 1.20 million) and foreign currency trade payables of JPY Nil (JPY 1.59 million)

ii) Cross Currency Swap of JPY/INR Rs. 841.95 lacs (Rs. 1683.91 lacs ) and Rs. 302.39 lacs (Rs. 604.78 lacs) in respect of loan with interest rate @ 6 months JPY Libor plus 1.5% vis- a- vis fixed rate of 8.35% and 8.25% respectively.

iii) Cross Currency Swap of USD/INR Rs. 9,470 lacs(Rs. 9,470 Lacs) in respect of loan with interest rate @ 3 months USD Libor plus 2.5% vis- a- vis fixed rate of 8.50% .

(b) Particulars of unhedged foreign currency exposure as at the reporting date

Foreign Currency Trade Receivables (including advances) and Trade Payables aggregating to Rs. 498.44 lacs (Rs. 909.53 lacs) and Rs.233.31 lacs (Rs.400.97 lacs) respectively.

Notes-12[PREVIOUS YEAR FIGURES

Till the year ended 31st March 2011, the Company was using pre-revised Schedule VI to the Companies Act 1956, for preparation and presentation of its financial statements. During the year ended 31st March 2012, the revised Schedule VI notified under the Companies Act 1956, has become applicable to the Company. The Company has reclassified previous year figures to conform to this years' classification. The adoption of revised Schedule VI does not impact recognition and measurement principle followed for preparation of financial statements. However, it significantly impacts presentation and disclosure made in the financial statements, particularly presentation of Balance Sheet.

---

Mar 31, 2011

1. Nature of Operations:

Orient Paper & Industries Ltd. is primarily engaged in manufacture & sale of Cement, Paper, Electrical Consumer Durables, Chemicals, Industrial Blowers and Air Pollution Control Equipments. The Company presently has manufacturing facilities at Devapur, Jalgaon, Amlai, Brajrajnagar, Faridabad & Kolkata.

31st March, 2011 31st March, 2010

2. Contingent Liabilities not provided for in respect of:

a) Outstanding bank guarantees 702.77 770.91

b) Demands/claims by various Government authorities and others not acknowledged as debts and contested by the Company :

i) Excise Duty 2125.91 1928.81

ii) Sales Tax 931.64 883.85

iii) Income Tax 2875.45 145.20

iv) Water Tax (Refer Note No.9 below) 2416.14 15257.03

v) Others 6083.88 3117.04

14433.32* 21331.93

Against the above, payments have been made under protest and/ 533.51 487.05 or debts have been withheld by respective parties.

c) Outstanding claims from employees not acknowledged as debts, including Bonus claims under adjudication and wages for suspension period at Brajrajnagar Unit. Amount unascertainable

d) The Company has filed a writ petition in the High Court of Jabalpur, contesting the order of Commissioner Commercial Tax in the case of IOC Ltd regarding taxability of furnace oil at par with diesel. Pending final disposal of this matter, the Company is unable to ascertain the impact of the order, if any, on the accounts of the Company.

* Based on discussions with the solicitors/ favourable decisions in similar cases/legal opinions taken by the Company, the management believes that the Company has a good chance of success in above-mentioned cases and hence, no provision thereagainst is considered necessary.

3. a) Pursuant to the Scheme of Amalgamation as approved by Honble High Court at Calcutta by an order dated 22nd November 2010 , all the assets and liabilities of OPI Export Limited(OPI), a wholly owned subsidiary of the Company, have been transferred to and vested in the Company from 1st April, 2010 at their book values.

b) The Amalgamating Company (OPI) was engaged in the trading and investment business.

d) Profit & Loss Account Debit balance of Rs. 8.22 lacs as on 1st April 2010 of the Amalgamating Company after adjusting Rs. 0.50 Lac being the difference between carrying value of Companys investment in OPI and the amount of share capital appearing in the books of OPI, has been adjusted with General Reserve of the Company.

4. Charity & Donation includes Rs. Nil (Rs. 100 lacs ) paid to All India Congress Committee and Bhartiya Janata Party Rs. Nil (Rs. 50 lacs each) for political purposes.

5. As per approval of shareholders in the extra ordinary general meeting held on 7th March 2011, the Company has allotted 1,20,00,000 share warrants on a preferential basis to certain promoter group companies on 18th March 2011. Each warrant is convertible (at the sole option of the warrant holder) into one equity share of Re 1/- each at a price of Rs. 57.25 per share at any time within a period of 18 months from the date of allotment. Further, the Company has received 25% amount against each such warrant.

6. The Company has 29.34% share of interest valuing Rs. 413.92 lacs in its Joint Venture Company namely Pan African Paper Mills (EA) Limited, Kenya which is engaged in the manufacturing of Paper.

The Company ceases to have joint control over the above Joint Venture Company subsequent to suspension of operations from 30th January, 2009 and in view of the circumstances arising thereafter. Accordingly, no disclosure for interest in said Joint Venture asset, liabilities, income, expenses etc. have been made in these accounts.

7. Water Tax demand received from the Water Resources Department of the Government of Madhya Pradesh has been paid/provided to the extent of liability admitted by the Company for the period upto April, 2009 i.e. the period prior to new agreement effective from May 2009 entered into with the Water Resource Department. No provision against the balance demand of Rs. 17076.58 lacs (including compounded interest and penalty) has been made since the Companys application for waiver thereof is under consideration by the government of Madhya Pradesh.

Provision for Warranty

A provision is recognized for expected warranty claims on products based on management estimate of present obligation in this regard during the warranty period, computed on the basis of past experience of levels of repairs and returns. It is expected that the entire provision will be utilized within two years of the Balance Sheet date, since the warranty period is generally for two years.

Provision for Mining Restoration Costs

The activities at the cement unit involve mining of land taken under lease. In terms of relevant statutes, the mining areas would require restoration at the end of the mining lease. The future restoration expenses are affected by a number of uncertainties, such as, technology, timing etc. As per the requirement of Accounting Standard –29, the management has estimated such future expenses on best judgment basis and provision thereof has been made in the accounts.

8. Excise Duty on sales has been reduced from sales in Profit & Loss Account and Excise Duty on increase/decrease in stocks has been considered as income/expenses in Profit & Loss Account.

9. Gratuity – Defined benefit plan

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

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

x) The Company expects to contribute Rs 475 lacs (Rs. 440 lacs) to Gratuity fund in 2011-2012.

10. a) Derivative Instrument not for trading or speculation but as hedge of underlying transaction, outstanding as on the Balance Sheet date :- i) Forward contract in respect of foreign currency debtors of USD 1.20 million (USD Nil) and foreign currency creditors of JPY 1.59 million (JPY 6.16 million) and CHF Nil (0.41 million).

ii) Cross Currency Swap of JPY/INR Rs. 1683.91 lacs (Rs. 2525.85 lacs) and Rs. 604.78 lacs (Rs. 907.16 lacs) in respect of loan with interest rate @ 6 months JPY Libor plus 1.5% vis-a-vis fixed rate of 8.35% and 8.25% respectively.

iii) Cross Currency Swap of USD/INR Rs. 9470 lacs( Rs. 9470 Lacs) in respect of loan with interest rate @ 3 months USD Libor plus 2.5% vis-a-vis fixed rate of 8.50% .

b) Foreign Currency exposures not hedged as on the Balance Sheet date :- Foreign Currency Debtors (including advances) and Creditors aggregating to Rs.909.53 lacs (Rs. 908.41 lacs) and Rs. 400.97 lacs (Rs. 321.90 lacs) respectively.

11. In case of assets given on lease

Operating Lease:

The Company has leased out certain buildings on operating lease. The lease term is for 1-3 years and thereafter renewable. There is escalation clause in the lease agreement. The rent is not based on any contingencies. There are no restrictions imposed by lease arrangements. The leases are cancelable.

In case of assets taken on lease

Operating Lease:

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

12. Previous years figures have been regrouped and readjusted wherever necessary. Further, the current years figures being inclusive of figures of OPI Export Ltd. amalgamated with the Company w.e.f. 1st April, 2010 (pursuant to a scheme of amalgamation), are not comparable with the previous years figures.

---

Mar 31, 2010

1. Nature of Operations:

Orient Paper & Industries Ltd. is primarily engaged in manufacture & sale of Cement, Paper, Electrical Consumer Durables, Chemicals, ndustrial Blowers and Air Pollution Control Equipments. The Company presently has manufacturing facilities at Devapur, Jalgaon, Amlai, Brajrajnagar, Faridabad & Kolkata

31st March, 2010 31st March, 2009 2. Contingent Liabilities not provided for in respect of:

a) i) Guarantees in favour of Banks / Institutions / Bodies - -

Corporate against facilities granted to a Subsidiary - 791.00

ii) Credit facilities availed against the above - 4.92

b) Outstanding bank guarantees 1830.66 683.03

c) Demands/claims by various Government authorities and others not acknowledged as debts and contested by the Company:

a) Excise Duty 1928.81 1378.55

b) Sales Tax 883.85 823.72

c) Income Tax 145.20 -

d) Water Tax 15257.03 11408.25

e) Others 2956.91 2848.80

21171.80* 16459.32

Against the above, payments have been made under protest and/ or debts have been withheld by respective parties.

d) Outstanding claims from employees not acknowledged as debts, including Bonus claims under adjudication and wages for suspension period at Brajrajnagar Unit. Amount unascertainable

e) The Company has filed a writ petition in the High Court of Jabalpur, contesting the order of Commissioner Commercial Tax in the case of IOC Ltd regarding taxability of furnace oil at par with diesel. Pending final disposal of this matter, the Company is unable to ascertain the impact of the order, if any, on the accounts of the Company.

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

3 a) Pursuant to the Scheme of Amalgamation as approved by the shareholders the Company and the Honble Board for Industrial and Financial Reconstruction (BIFR) by an order dated 12th March 2010, all the assets and liabilities of Air conditioning Corporation Ltd (ACCL), a wholly owned subsidiary of the Company, have been transferred to and vested in the Company from 1st April, 2009 at their book values

b) The Amalgamating Company (ACCL) is engaged in the business of manufacture and sale of Industrial Blowers and Air Pollution Contro Equipments

c) The Amalgamation has been accounted for under the "Pooling of Interest" method as prescribed by Accounting Standard (AS-14) issued by the Institute of Chartered Accountants of India. Pursuant to the Scheme, all the assets, liabilities and reserves of ACCL as at 1st April, 2009 have been transferred to the Company at their book values as under:

487.05 459.02

d) Profit & Loss Account Debit balance of Rs.193.57 lacs as on 1st April 2009 of the Amalgamating Company after adjusting Rs. 24 Lacs being the difference between carrying value of Companys investment in ACCL and the amount of share capital appearing in the books of ACCL, has been adjusted with General Reserve of the Company.

4. Charity & Donations includes Rs. 100 lacs (Rs. Nil) paid to All India Congress Committee and Bhartiya Janata Party (Rs. 50 lacs each) for political purposes

5. Lease agreements for assets aggregating to Rs. 500 lacs have already expired, but these assets are yet to be formally transferred to the Company by the lessor, pending compliance of the necessary formalities. However, these assets are in physical possession of the Company

6. The Company has 29.34% share of interest valuing Rs. 413.92 lacs in its Joint Venture Company namely Pan African Paper Mills (EA) Limited, Kenya which is engaged in the manufacturing of Paper

The Companys proportionate interest in the said Joint Ventures assets, liabilities, income, expenses etc. for the year ended 31st March, 2010 have not been disclosed in these accounts since the accounts of the Joint Venture Company for the above period are not available due to suspension of operations since 30th January, 2009

7. Against the demand for Water Tax from The Water Resources Department of the Govt. of Madhya Pradesh aggregating to Rs. 14430.11 lacs including compounded interest and penalty upto 31st March, 2010, provision has been made on the basis of liability admitted by the Company since the demand continues to be stayed and is under reconsideration by the Govt. of Madhya Pradesh. Out of the above demand, the Company has provided Rs. 1049.08 lacs (including Rs. 115.03 lacs during the year) and the balance demand amounting to Rs. 13381.03 lacs has been shown as contingent liability.

Provision for Warranty

A provision is recognized for expected warranty claims on products based on management estimate of present obligation in this regard during the warranty period, computed on the basis of past experience of levels of repairs and returns. It is expected that most of the payments will occur in the next financial year and the entire provision will be utilized / incurred within two years of the Balance Sheet date, since the warranty period is generally for two years

Provision for Mining Restoration Costs

The activities at the cement unit involve mining of land taken under lease. In terms of relevant statutes, the mining areas would require restoration at the end of the mining lease. The future restoration expenses are affected by a number of uncertainties, such as, technology, timing etc. As per the requirement of Accounting Standard -29, the management has estimated such future expenses on best judgment basis and provision thereof has been made in the accounts

8. Excise duty on stocks represents differential excise duty on opening and closing stock of Finished Goods

9. Gratuity - Defined benefit plan

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

The following tables summarize the components of net benefit expenses recognized in the Profit & Loss Account and the funded status and amounts recognized in the Balance Sheet for the plan. (Rs. in lacs)

10. a) Derivative Instrument outstanding as on the Balance Sheet date :-

i) Forward contract in respect of foreign currency debtors of Nil (USD 0.52 million) and foreign currency creditors of JPY 6.16 million (JPY 5.80 million) and CHF 0.41 million (Nil) i) Cross Currency Swap of JPY/INR Rs. 2525.85 lacs (Rs. 2806.51lacs) and Rs. 907.16 lacs (Rs. 1077.97 lacs) in respect of loan with interest rate @ 6 months JPY Libor plus 1.5% vis- a- vis fixed rate of 8.35% and 8.25% respectively.

iii) Cross Currency Swap of USD/INR Rs. 9470 lacs in respect of loan with interest rate @ 3 months USD Libor plus 2.5% vis- a- vis fixed rate of 8.50%

b) Foreign Currency exposures not hedged as on the Balance Sheet date

Foreign Currency Debtors (including advances) and Creditors aggregating to Rs.908.41 lacs (Rs. 541.65 lacs) and Rs. 321.90 lacs (Rs 332.79 lacs) respectively.

Net of Excise Duty.

Excluding Rs.393.54 lacs ( Rs. 24.28 lacs) being unallocated corporate / other assets.

*** Excluding Rs 33.19 Lacs (Rs.32.37 lacs) on unallocated corporate/ other assets.

Note:The Company has common fixed assets for producing goods for domestic and overseas markets. Hence, separate figures for fixed assets / additions to fixed assets have not been furnished.

Notes :

(i) Business Segment: The business segments have been identified on the basis of the products of the Company. Accordingly, the Company has identified "Paper", "Cement" and "Electrical Consumer Durables" as the business segments: Paper - Consists of manufacture and sale of pulp, paper & board and chemicals. Cement - Consists of manufacture and sale of cement.

Electrical Consumer Durables - Consists of manufacture / purchase and sale of Electric Fans - ceiling, portable and airflow, along with Components and Accessories thereof and lights & luminaries. Others - Consist of other miscellaneous business/services comprising less than 10% revenues.

(ii) Geographical Segment: The Company primarily operates in India and therefore the analysis of geographical segments is demarcated into its Indian and Overseas Operations.

(i) Represents stock transferred from amalgamating company on 1st April, 2009. (ii) Equivalent production at 100% contents of Chlorine Gas would be 1875MT.

(iii) Includes 6074 MT (3263 MT) of C S Lye, 15 MT (10MT) of C S Flakes, 2970 MT (2285 MT) of Liquid Chlorine, 23MT (12 MT) of HCL and 3123 MT (1985MT) of Hyp Chlorite consumed departmentally.

-Represents item where manufacturing operations were not carried on during the year. ** After adjusting shortage / excess / reprocessing loss/ quantity discarded etc.

-Including excise duty and export incentives but excludes cash discount, rebates etc.

-Value written off

Notes:

1. Installed capacities have been certified by the management and accepted as correct by the Auditors.

2. Pulp plant is an integrated part of the Paper and Board plants and therefore, capacity and actual production of pulp is not separately ascertained.

3. Sale of Pulp, Paper & Board includes own consumption 7 MT (10 MT)

4. Sale of C S Lye and Hydrochloric Acid includes own consumption 271 MT (142 MT ) and 2787 MT (1511 MT) respectively.

5. Sale of Portland Cement includes own consumption, samples etc. 8698 MT (18278 MT) and sale of clinker 178874 MT (Nil) valuing Rs. 3238.06 lacs (Rs. Nil).

11. Previous years figures have been regrouped and readjusted wherever necessary. Further, the current years figures being inclusive of figures of Air Conditioning Corporation Ltd. amalgamated with the Company w.e.f. 1st April, 2009 (pursuant to a scheme of amalgamation) and figures of chemical division for the full year as against part of the year included in previous year, are not comparable with the previous years figures