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A Oneindia Venture

Nifty 25,966.40 +0.58%

22k Gold ₹ 12,300 /gm

Sensex 84,929.36 +0.53%

Nifty 25,966.40 +0.58%

22k Gold ₹ 12,300 /gm

Sensex 84,929.36 +0.53%

Nifty 25,966.40 +0.58%

22k Gold ₹ 12,300 /gm

Notes to Accounts of Shreyans Industries Ltd.

Mar 31, 2025

r) Provisions and Contingent Liabilities
(A) Provisions

- Provisions are recognized if, as a result of past event, the company has a present obligation (legal or constructive), and it is
probable that a cash outflow will be required to settle the obligation in respect of where a reliable estimate can be made.

- As the timing of outflows of resources is uncertain, being dependent upon the outcome of the future proceedings, these
provisions are not discounted to their present value.

- When some or all of economics benefits required to settle a provision are expected to be recovered from a third party, a
receivable is recognized as on asset if it is virtually certain that reimbursements will be received and amount of the receivable can
be measured reliably.

(B) Contingent liability

- A disclosure for contingent liability is made when is a possible obligation or a present obligation that may, but probably will not
require an outflow of resources.

- When there is possible obligation or a present obligation where the like hood of an outflow of resources is remote no provision or
disclosure is made.

Commitments include the amount of purchase order (net of advances) issued to parties for completion of assets.

Contingent assets are neither recognized nor disclosed in the financial statements
Provisions, contingent liabilities, and commitments are reviewed at each balance sheet date
2.4 Use of Significant accounting judgements and estimates

The preparation of the financial statements in conformity with Indian Accounting Standards (Ind AS) require management to make
judgements, estimates and assumptions that affect the application of accounting policies and the reported amount of revenues,
expenses, assets and liabilities and disclosure of contingent liabilities at the date of the financial statement and reported amount of
revenue and expense during the period.

Although these estimates are based upon management''s best knowledge of current events and actions, uncertainty about these
assumptions and estimates could result in the outcome requiring a material adjustment to the carrying amount of assets or liabilities
in future period. The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates
are recognized in the period in which the estimate is revised if the revision affects only the period of the revision and future periods if
the revision affects both current and future periods.

The following are the areas of estimation uncertainty and critical judgements that the management has made in the process of
applying the Company''s accounting policies and that have the most significant effect on the amounts recognised in the financial
statements:

i) Useful lives of property, plant and equipment

The estimated useful lives of property, plant and equipment are based on a number of factors including the effects of obsolescence,
internal assessment of user experience and other economic factors (such as the stability of the industry, and known technological
advances) and the level of maintenance expenditure required to obtain the expected future cash flows from the asset.

The Company reviews the useful life of property, plant and equipment at the end of each reporting date.

ii) Recoverable amount of property, plant and equipment

The recoverable amount of property plant and equipment is based on estimates and assumptions regarding the expected market
outlook and expected future cash flows. Any changes in these assumptions may have a material impact on the measurement of the
recoverable amount and could result in impairment.

iii) Defined benefit plans

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

iv) Recognition of deferred tax assets

Management judgement is required for the calculation of provision for income taxes and deferred tax assets and liabilities. The
company reviews at each balance sheet date the carrying amount of deferred tax assets. The factors used in estimates may differ
from actual outcome which could lead to signification adjustment to the amounts reported in financial statement.

v) Contingencies

Management judgement is required for estimating the possible outflow of resources, if any, in respect of
contingencies/claims/litigations against the Company as it is not possible to predict the outcome of pending matters with accuracy.
The Company annually assesses such claims and monitors the legal environment on an ongoing basis, with the assistance of
external legal counsel, wherever necessary.

vi) Fair value measurement

Some of the Company''s assets and liabilities are measured at fair value for financial reporting purposes. The Board of Directors of
the Company approves the fair values determined by the Chief Financial Officer of the Company including determining the
appropriate valuation techniques and inputs for fair value measurements.

In estimating the fair value of an asset or liability, the Company uses market-observable data to the extent is available. Where Level
1 inputs are not available, the Company engages third party qualified valuers to perform the valuation. The Chief financial officer
works closely with the qualified external valuers to establish appropriate valuation techniques and inputs to the model.

vii) Income Tax

The Company''s tax jurisdiction is India. Significant judgements are involved in determining the provision for income taxes including
judgement on whether tax positions are probable of being sustained in tax assessments. A tax assessment can involve complex
issues, which can only be resolved over extended time periods.

viii) Inventory

Management has carefully estimated the net realizable values of inventories, taking into account the most reliable evidence
available at each reporting date. The future realization of these inventories may be affected by market driven changes
2.5 Current - non-current classification

All assets and liabilities have been classified as current and non-current on the basis of the following criteria:

Assets

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

a) it is expected to be realised in, or is intended for sale or consumption in, the company''s normal operating cycle;

b) it is held primarily for the purpose of being traded;

c) it is expected to be realised within 12 months after the reporting date; or

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

Current assets include the current portion of non-current financial assets.

All other assets are classified as non-current.

Liabilities

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

a) it is expected to be settled in the company''s normal operating cycle;

b) it is held primarily for the purpose of being traded;

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

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

Current liabilities include current portion of non-current financial liabilities.

All other liabilities are classified as non-current
Operating cycle

Operating cycle is the time between the acquisition of assets for processing/servicing and their realization in cash or cash
equivalents.

Mar 31, 2024

b) Rights, preferences and restrictions attached to equity shares

The company presently has one class of equity shares having a par value of F10/- each. Each holder of equity shares is entitled to one vote per equity share. The dividend if proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting.

In the event of liquidation of the company, the holders of equity shares will be entitled to receive any of the 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.

I Nature and purpose of reserve

a) Capital reserve: The amount of Capital profit on re-issue of forfeited shares is recognised as Capital Reserve.

b) Securities premium: The amount received in excess of face value of the equity shares is recognised in Securities Premium. It can be utilized in accordance with the provisions of the Companies Act 2013, for issuance of bonus shares, to provide for premium on redemption of shares or debentures, write-off equity related expenses like underwriting costs etc

c) General Reserve: General Reserves are the free reserves of the Company which are kept aside out of Companyâs profit to meet future requirement as and when they arise. The Company had transferred a portion of the profit after tax to General reserves pursuant to the earlier provisions of the Companies Act â1956. Mandatory transfer to General Reserve is not required under the Companies Actâ 2013.

d) Retained earnings: Retained earnings are the accumulated profit earned by the Company till date less transfer to General Reserve and payment of Dividend (including dividend distribution tax where applicable).

e) Other Comprehensive Income: The reserve represents cumulative gain and loss on remeasurement of defined benefit plan and return on plan assets (excluding amount included in net interest). The balance in the reserve can be transferred to retained earnings as and when the company decides to do so.

Details of security for loans repayable on demand (secured)

i) Working capital borrowings from banks F381.28 lakhs (31st March 2023: F1302.88 lakhs) are secured by hypothecation of stocks of raw materials, finished goods, bills receivables, book debts and all other movable assets of the company and further secured by way of second charge on the immovable assets situated at village Banah and at Ahmedgarh and also personally guaranteed by two promoter directors of the company (Refer Note 40).

ii) The Company has obtained overdraft facility from Bank against pledge of current investment as stated in Note No 9. The outstanding balance against this facility is F97.00 (31st March 2023: FNil) (refer Note 40)

iii) The Company has obtained borrowings F800 Lakhs (31st March 2023 F1200 Lakhs) from Deustche India Investments Pvt Limited against pledge of current investment as stated in Note No 9. (Refer Note No 40)

Other discloures w.r.t Borrowings

iv) The Company has used the borrowings from banks and financial institutions for the specific purpose for which it was taken at the balance sheet date.

v) The company has taken borrowings from banks on the basis of security of current assets. The quarterly returns/statements filed by the company with the banks are in agreement with the books of account.

vi) The company has not been declared as wilful defaulter by any bank or financial Institution or other lender.

vii) As at 31st March 2024, the register of charges of the Company as available in records of the Ministry of Corporate Affairs (MCA) includes charges for which the underlying loans have been repaid. The Company is in process of filing the charge satisfaction e-form with MCA, within the timelines, as and when it receives NOCs from the respective charge holders.

39 Contingent liabilities and commitments (to the extent not provided for)

(No cash outflow is expected)

A CONTINGENT LIABILITIES

a) Claims against the company not acknowledged as debt in respect of demands for various years relating to Central excise, Customs duty, Service tax and VAT, PSPCL contested in appeal amounted to F379.46 lakhs (previous year F406.38 lakhs). According to the management and tax advisors that the demand raised is not in accordance with the provisions of respective laws and its ultimate resolution will not have a material adverse effect on the company financial position and result of operations. As against this, a sum of F65.88 lakhs (Previous year F74.04 lakhs) is deposited under protest and has been included under Note 7 âOther non current assetsâ.

b) Liability on account of outstanding bank guarantees and letter of credit is F1943.84 lakhs (previous year F3399.96 Lakhs).

c) The Punjab Water Regulation and Development Authority had notified Punjab Groundwater Extraction and Conservation Directions, 2023âon January 27â2023 to be effective from February 01â2023. As per the directions the charges for extraction of underground water are proposed to be applicable from date of submission of application under draft guidelines or from date of extraction which ever is later. The Company has filed petition with the Punjab Water Regulation and Development Authority against the restrospectively levy of extraction charges under Ad-interim permission without notification in the Official Gazette and implict consent. The demand for F1785.31 Lakhs against the Company for the period upto January 2023 has not been acknowledged as debt.

d) The amounts shown above represents the best possible estimates arrived at on the basis of available information. The uncertainties and possible reimbursements are dependent on the outcome of the different legal processes which have been invoked by the Company or the claimants as the case may be and therefore cannot be predicated accurately or relate to the present obligations that arise from past events where it is either not probable that anoutflow of resources will be required to settle or a reliable estimate cannot be made. The Company has been advised that it has strong legal position against such dispute.

e) The Code on Social Security, 2020 (âCodeâ) relating to employee benefits during employment and post-employment benefits received Presidential assent in September 2020. The Code has been published in the Gazette of India. However, the date on which the Code will come into effect has not been notified. The Company will assess the impact of the Code when it comes into effect and will record any related impact in the period when the Code becomes effective.

provision, on receiving runner clarity on this subject matter.		(F in lakhs)
	As at	As at
B Commitments	31st March, 2024	31st March, 2023
a) Estimated amount of contracts remaining to be executed on Capital account and not provided for (net of advances)	957.29	270.04

f) The Honâble Supreme Court in a ruling during the year 2019 had passed a judgement on the definition and scope of âBasic Wagesâ under the Employeesâ Provident Funds and Miscellaneous Provision Act, 1952. Pending issuance of guidelines by the regulatory authorities on the application of this ruling, the impact on the Company, if any, cannot be ascertained. The Company will update its provision, on receiving further clarity on this subject matter.

b) The Company has other commitments, for purchases /sales order which are issued after considering requirements per operating cycle for purchase /sale of goods and services, employee benefits in normal course of business. The Company does not have any long-term contracts including derivative contracts for which there will be any material foreseeable losses.

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

ix) The plan typically exposes the Company to actuarial risks such as: investment risk, interest rate risk, longevity risk and salary risk. Investment Risk

The Probability or likelihood of occurrence of losses relative to the expected return on any particular investment.

Interest risk

If the Discount Rate i.e. the yield on the Government Bonds decrease in future, the Actuarial Liability will increase and vice versa. The quantum of increase in valuation liability corresponding to specific decrease in the Discount Rate and vice versa, has been shown in the annexure containing the sensitivity Analysis of Key Actuarial Assumption.

Longevity risk

If the Mortality rate experienced by the staff of a particular company is higher than what is assumed in mortality Table used in the valuation, the valuation liability will increase.

However, it will be very cumbersome to measure the quantum of increase for assumed reduction of Mortality rates as can be done in case of changes in salary Growth Rate and Interest Rate.

Trade receivables are presented net of impairment in the Balance sheet.

The Company classifies the right to consideration in exchange for deliverables as a receivable. Receivable is right to consideration that is unconditional upon passage of time.

C Contract Liabilities

Contract liability relate to payment received in advance for performance under contract. Contract liabilities are recognised as revenue at the time of sale of goods. Contract Liabilities includes Non current or current advances received from customers to deliver goods. Revenue recognised in the current reporting period to carried forward Contract liabilities:

The amount of revenue recognised during the year for the amount included in contract liability at the beginning of the year is

E Performance obligation and remaining performance obligation

The performance obligation is satisfied upon the delivery of Writing and Printing Paper and payment is generally due within 7 days to 30 days after the delivery.

The remaining performance obligation disclosure provides the aggregate amount of the transaction price yet to be recognized as at the end of the reporting period and an explanation as to when the Company expects to recognize these amounts in revenue. There were no remaining performance obligation as at 31st March 2024.

46 Segment Reporting

Based on the guiding principles laid down in Indian Accounting Standards (Ind-AS)-108 "Segment Reporting" the Chairman and Managing Director of the Company is the Chief Operating Decision maker (CODM). The Company''s business activity falls within single segment namely manufacturing of âWriting and Printing Paperâ Accordingly, the disclosure requirements of IndAS 108 are not applicable.

47 Dividend

The Board of Directors have recommended dividend of F3.00/- per equity share and special dividend of F2.00 /- per equity share amounting to F691.23 lakhs (previous year 2022-23 : F2.50/- per share and special dividend of F2.50 /- per share amounting to F691.23 lakhs) during their meeting held on 10th May 2024. The dividend, as recommended by the Board of Directors, if approved at the Annual General Meeting, would be paid subject to deduction of tax (TDS) at the prescribed rates as per Income Tax Act,1961 as amended by Finance Act 2020.

iii. Financial risk management

The principal financial assets of the Company include investments, loans, trade and other receivables, cash and bank balances that the Company derive directly from its operations. The principal financial liabilities of the company, include loans and borrowings, trade and other payables and the main purpose of these financial liabilities is to finance the day to day operations of the company.

The Company is exposed to market risk, credit risk and liquidity risk. The Companyâs senior management oversees the management of these risks and that advises on financial risks and the appropriate financial risk governance framework for the Company.

This note explains the risks which the company is exposed to and policies and framework adopted by the company to manage these risks:-

(A) Market risk management

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 of Currency risk, Interest rate risk and other price risk. a.1 Foreign currency risk management

The Companyâs functional currency is Indian Rupees (INR). The Company has exposure to foreign currency by way of trade payables /trade receivables and is therefore exposed to foreign exchange risk. Volatility in exchange rates affects the Companyâs revenue from exports markets and the costs of imports, primarily in relation to raw materials with respect to the US-dollar

The exchange rate between the Indian rupee and foreign currencies has changed substantially in recent years and may fluctuate substantially in the future. Consequently the company is exposed to foreign currency risk and the results of the company may be affected as the rupee appreciates/ depreciates against foreign currencies. Foreign exchange risk arises from the future probable transactions and recognised assets and liabilities denominated in a currency other than companyâs functional currency.

The company measures the risk through a forecast of highly probable foreign currency cash flows and manages its foreign currency risk by hedging appropriately. The Company uses foreign exchange forward contracts to mitigate the risk of changes in exchange rates on foreign currency exposures.

a.2 Foreign currency sensitivity analysis

Any changes in the exchange rate of USD against INR is not expected to have significant impact on the Company''s profit due to the less exposure of these currencies. Accordingly, a 5% appreciation/depreciation of the INR as indicated below, against USD would have increased/reduced profit by the amounts shown below. This analysis is based on the foreign currency exchange rate variances that the Company considered to be reasonably possible at the end of the reporting period.The impact on the Company''s profit before tax due to change in the fair value of monetary assets and liabilities including foreign currency derivatives on account of reasonably possible change in USD exchange rates (with all other variables held constant) is as under

b) Interest rate risk management

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.

As the Company has no significant interest-bearing assets, the income and operating cash flows are substantially independent 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, which are included in interest bearing loans and borrowings in these financial statements. The Company''s fixed rate borrowings are carried at amortised cost. They are therefore not subject to interest rate risk, since neither the carrying amount nor the future cash flows will fluctuate because of a change in market interest rates.

Cash flow sensitivity analysis for variable rate instruments

The following table demonstrates the sensitivity to a reasonably possible change in interest rates on that portion of loans and borrowings affected. A change of 100 basis points in interest rates for variable rate instruments at the reporting date would have increased/(decreased) profit or loss by the amounts shown below. With all other variables held constant, the Company''s profit before tax is affected through the impact on floating rate borrowings, as follows:

Equity investments are mainly held for strategic rather than trading purposes. Protection principle is given high priority by limiting company''s investments top rated money market instruments only.

Equity price risk is related to change in market reference price of investments in equity shares held by the Company. The fair value of quoted investments held by the Company exposes it to equity price risks. ii) Mutual Fund Investments

The Company manages the surplus funds majorly through investments in debt based and equity mutual fund schemes. The price of investment in these mutual fund is Net Asset Value (NAV) declared by the Asset Management Company on daily basis is reflected by the movement in the NAV of invested schemes. The Company is exposed to price risk on such Investment schemes.

Mutual fund investments are susceptible to market price risk, mainly arising from changes in the interest rates or market yields which may impact the return and value of such investments. However, due to the very short tenor of the underlying portfolio in the liquid schemes, these do not hold any significant price risks. c.1 Equity price sensitivity analysis

The Company is exposed to equity price risks arising from equity investments. Equity investments are held for strategic rather than trading purposes. However, the company aims to monetize this investment to reduce its overall leverage. Any adverse movement in the share price has an impact on its profitability and vice versa.

Sensitivity

Following is the sensitivity analysis as a result of the changes in fair value of equity investments (non current) measured at FVTPL, determined based on the exposure to equity price risks at the end of the reporting period.

If equity prices had been 5% higher/ lower, profit would increase/ (decrease) as follows for: the year ended 31st March 2024 : by F20.82 lakhs the year ended 31st March 2023 : by F18.07 lakhs c.2 Mutual fund price sensitivity analysis

The sensitivity analysis has been determined based on Mutual Fund Investment at the end of the reporting period. If NAV had been 1% higher/lower, the profit for year ended 31st March 2024 would have increased/decreased by F /- 219.87 lakhs (previous year: increase/decrease by F /- 154.46 lakhs) as a result of the changes in fair value of mutual funds.

(B) Credit risk management

Credit risk arises from the possibility that a counter party will default on its contractual obligations resulting in financial loss to the Company. The Company is exposed to credit risk from its operating activities (primarily trade receivables, loans to employees and security deposits). The Company''s credit risk in case of all other financial instruments is negligible.

To manage this, the Company periodically assesses the financial reliability of customers, taking into account the financial conditions, current economic trends, and analysis of historical bad debts and ageing of accounts receivable.

The Company considers the probability of default upon initial recognition of assets and whether there has been a significant increase in credit risk on an ongoing basis through each reporting period.

to whom goods are sold on credit terms in the normal course of business. Outstanding trade receivables are regularly monitored and any shipments to overseas customers are generally covered by Letter of Credit.

In determining the allowances for expected credit losses of trade receivables, the company has used a practical expedient by computing the expected credit loss allowance for trade receivables based on a provision matrix. The provision matrix takes into account historical credit loss experience and is adjusted for forward looking information. The expected credit loss allowance is based on the ageing of the receivables that are due and rates used in the provision matrix. In addition to this, Company provides for credit loss based on increase in credit risk on case to case basis. Management believes that the unimpaired amounts that are past due by more than 90 days are still collectible in full, based on historical payment behavior and analysis of customer credit risk The following is the movement in the allowance for lifetime expected credit loss and revenues generated from top five customers of the company.

The maximum exposure to credit risk at the reporting date is the carrying value of trade receivables as disclosed at Note 10. b. Other Financial Assets

The Company maintains exposure in cash and cash equivalents, time deposits with banks, investments in debt mutual funds. Investment of surplus funds are made only with approved counter parties. The maximum exposure to credit risk at the reporting date is the carrying value of each class of financial assets.

Write off policy

The financial assets are written off in case there is no reasonable expectation of recovering from the financial asset.

The objective of liquidity risk management is to maintain sufficient liquidity to meet financial obligations of the Company as they become due. The Company monitors rolling forecast of its liquidity position on the basis of expected cash flows. The Companyâs approach is to ensure that it has sufficient liquidity or borrowing headroom to meet its obligations at all points in time. The Company manages the liquidity risk by maintaining adequate cash reserves, banking facilities and reserve borrowing facilities by continuously monitoring forecast and actual cash flows and by matching the maturity profiles of financial assets and liabilities.

The Company has access to various fund / non-fund based bank financing facilities. The amount of unused borrowing facilities (fund and non-fund based) available for future operating activities and to settle commitments as at 31st March 2024 F5773.44 lakhs (as at 31st March 2023 F1757.16 lakhs).

Exposure to liquidity risk

The below is the detail of contractual maturities of the financial liabilities of the company at the end of each reporting period along with contractual maturity of Financial assets:

There were no transfers between Level 1 and 2 in the period. Sensitivity of Level 3 financial instruments are insignificant.

The fair value of the financial instruments are determined at the amount that would be received to sell an asset in an orderly transaction between market participants. The following methods and assumptions were used to estimate the fair values:

Investments in mutual funds: Fair value is determined by reference to quotes from the financial institutions, i.e. net asset value (NAV) for investments in mutual funds declared by mutual fund house. NAV represents the price at which the issuer will issue further units of mutual fund and the price at which issuer will redeem such units for the investor.

Derivative contracts: The Company has entered into foreign currency contract(s) to manage its exposure to fluctuations in foreign exchange rates. These financial exposures are managed in accordance with the Companyâs risk management policies and procedures. Fair value of derivative financial instruments are determined using valuation techniques based on information derived from observable market data, i.e., mark to market values determined by the Authorized Dealers Banks.

55 The company does not have any Benami property, where any proceeding have been initiated or pending against the company for holding any benami property under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988).

56 The company has not advanced or loaned or invested funds (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

a) directly or indirectly lend or invest in other person or entities identified in any manner whatsoever by or on behalf of the company (Ultimate Beneficiaries) or

b) provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries.

57 The company has not received any fund from any person or entity, including foreign entities ( Funding parties ) with the understanding (whether recorded in writing or otherwise) that the company shall

a) directly or indirectly lend or invest in other person or entities identified in any manner whatsoever by or on behalf of the funding party (Ultimate Beneficiaries) or

b) provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

58 There are no transactions which are not recorded in the books of accounts that has been surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961 (such as, search or survey or any other relevant provisions of the Income Tax Act, 1961).

59 Loans to Director: There are no loans or advances in the nature of loans that are granted to Promoters, Directors, KMPs and their related parties (as defined under Companies Act, 2013), either severally or jointly with any other person, that are:

a) repayable on demand; or

b) without specifying any terms or period of repayment

60 Compliance with number of layers prescribed under clause (87) of Section 2 of the Act read with Companies (restriction on number of layers) Rules, 2017 is not applicable as there is no subsidiary.

61 The Company uses an accounting software for maintaining its books of account which has a feature of recording audit trail (edit log) facility and the same has operated throughout the year for all relevant transactions recorded in the accounting software. Further, no instance of audit trail feature being tampered with was noted in respect of the accounting software.

63 Figures in bracket indicate deductions.

64 Previous year figures in the financial statements, including the notes thereto, have been reclassified wherever required to confirm to the current year presentation/classification.

Mar 31, 2021

Trade receivables includes FNil, (previous year Nil) due from Related Party. There is no amount due from directors, other officers of the company or firm in which any director is a partner or private company in which any director is a director or member at any time during the year. There are no major customers representing more than 10% of total balance of Trade Receivables. The Company has used a practical expedient by computing the expected loss allowances for trade receivables based on historical credit loss experience

b) Rights, preferences and restrictions attached to equity shares

The Board has recommended a Dividend of F3/- per equity share of F10/- for the financial year ended March 31,2021 (Previous year F3/-per equity share )

d) Detail of Shares held by holding company/ ultimate holding company their subsidiaries and associates

There is no holding /ultimate holding company of the company and therefore no subsidiary/associate of holding / ultimate holding company.

I Nature and purpose of reserve

a) Capital reserve: The amount of capital profit on re-issue of forfeited shares is recognised as Capital Reserve.

b) Securities premium account: The amount received in excess of face value of the equity shares is recognised in Securities Premium. It can be utilized in accordance with the provisions of the Companies Act 2013, for issuance of bonus shares, to provide for premium on redemption of shares or debentures, write-off equity related expenses like underwriting costs etc

i Term loans from banks (other than vehicles) are secured by a joint equitable mortgage created or to be created on immovable properties both present and future, situated at Ahmedgarh and Banah in the state of Punjab and hypothecation of whole of movable plant and machinery, machinery spares, tools and accessories and other movable, both present and future (save and except book debts) subject to the charge created or to be created by the company in favour of its bankers for its working capital loans. Term loans from banks are also personally guaranteed by promoter directors of the company (refer note 38).

ii Term loans from banks and others for vehicles are secured by way of hypothecation of vehicles purchased out of such loans.

* Note: Figures of term loan stated above in para (a) includes current maturities of long term debt shown separately in Note No 26 ** Repaid during the year

c Terms of repayment of term loans from others

Repayment schedule of unsecured loans/deposits from related parties is within period of 3 years from the date of acceptance and carry interest upto 11 % p.a (Previous year upto 11% p.a)

Repayment schedule of unsecured loans/deposits from public is within period of 3 years from the date of acceptance and carry interest upto 11 % p.a (Previous year upto 11% p.a)

i) Working capital borrowings from banks F398.17 lakhs (previous year F1120.77 lakhs) are secured by hypothecation of stocks of raw materials, finished goods, bills receivables, book debts and all other movable assets of the company and further secured by way of second charge on the immovable assets situated at village Banah and at Ahmedgarh and also personally guaranteed by two promoter directors of the company (refer note 38).

ii) The Company has obtained overdraft facility from Bank against pledge of current investment as stated in Note No 9. The outstanding balance against this facility is FNil lakhs (Previous year F596.75) (refer note 38)

iii) The Company has obtained borrowings F1200 Lakhs (Previous year FNil) from Deustche India Investments Pvt Limited against pledge of current investment as stated in Note No 9. (Refer Note No 38)

37 Contingent liabilities and commitments (to the extent not provided for)

(No cash outflow is expected)

A CONTINGENT LIABILITIES

a) Claims against the company not acknowledged as debt in respect of demands for various years relating to Central excise, Customs duty, Service tax and VAT contested in appeal amounted to F110.20 lakhs (previous year F310.91 lakhs). According to the management and tax advisors that the demand raised is not in accordance with the provisions of respective laws and its ultimate resolution will not have a material adverse effect on the company financial position and result of operations. As against this, a sum of F21.83 lakhs (Previous year F21.63 lakhs) is deposited under protest and has been included under Note 7 âOther non current assetsâ.

b) Liability on account of outstanding bank guarantees and letter of credit of F2764.28 lakhs (previous year F2087.28 lakhs).

c) The Code on Social Security, 2020 (âCodeâ) relating to employee benefits during employment and post-employment benefits received Presidential assent in September 2020. The Code has been published in the Gazette of India. However, the date on which the Code will come into effect has not been notified. The Company will assess the impact of the Code when it comes into effect and will record any related impact in the period when the Code becomes effective.

d) The Honâble Supreme Court in a recent ruling during the year 2019 had passed a judgement on the definition and scope of âBasic Wagesâ under the Employeesâ Provident Funds and Miscellaneous Provision Act, 1952. Pending issuance of guidelines by the regulatory authorities on the application of this ruling, the impact on the Company, if any, cannot be ascertained. The Company will

The above investments (Sl. No. 1 to 9) are lien marked against Overdraft facility from Deutsche Bank AG. The outstanding balance against this facilty is FNil Lakhs (previous year F596.75 Lakhs), the investments Sl. No. 10 to 16 are lien marked against inter corporate borrowings F1200 Lakhs (previous year FNil) from Deutsche India Investments Pvt Limited

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

ix) The plan typically exposes the Company to actuarial risks such as: investment risk, interest rate risk, longevity risk and salary risk. Investment Risk

The Probability or likelihood of occurrence of losses relative to the expected return on any particular investment.

Interest risk

If the Discount Rate i.e the yield on the Government Bonds decrease in future, the Actuarial Liability will increase and vice versa. The quantum of increase in valuation liability corresponding to specific decrease in the Discount Rate and vice versa, has been shown in the annexure containing the sensitivity Analysis of Key Actuarial Assumption.

Longevity risk

If the Mortality rate experienced by the staff of a particular company is higher than what is assumed in mortality Table used in the valuation, the valuation liability will increase.

However, it will be very cumbersome to measure the quantum of increase for assumed reduction of Mortality rates as can be done in case of changes in salary Growth Rate and Interest Rate.

40 Disclosures as required by Indian Accounting Standard (Ind AS) 116 Lease

The Company has lease contracts for Land and Buildings. Leases of land have lease terms of 1 to 10 years. The Company''s obligations under its leases are secured by the lessor''s title to the leased assets. Generally, the Company is restricted from assigning and subleasing the leased assets.

(a) The depreciation expense on ROU assets of F79.23 lakhs (previous year F87.40 lakhs) is included under depreciation and amortization expense in the statement of Profit and Loss.

(b) Interest Expense on the lease liability amounting to F24.69 lakhs (previous year F28.78 lakhs) has been included as a component of finance costs in the statement of Profit and Loss.

Effective April 1, 2019, the Company adopted Ind AS 116 âLeasesâ applied to all lease contracts existing on April 1, 2019 using the modified retrospective method. On transition , applying Ind AS 17, an amount of F85.41 lakhs has been recognised as Right of Use assets in respect of leases that were classified as finance lease, and a lease liability of F85.41 lakhs wes recognised on that date towards such leases. Further, in respect of leases which were classified as operating leases , applying Ind AS 17, F0.48 lakhs has been reclassified from other Assets" to "Right of Use Asset". The lease term in respect of all Operating leases ending within 12 months from the date of initial application and accordingly the company has elected to account for such leases as short term lease and has recognized the lease payments as rental expense. The cumulative effect of applying the standard was nil and there has been no adjustment to retained earnings. The aggregate depreciation expense on ROU asset is included under depreciation and amortization expense in the Statement of Profit or Loss.

The Company does not face a significant liquidity risk with regard to its lease liabilities as the current assets are sufficient to meet the obligations related to lease liabilities as and when they fall due. The discounted rate applied to lease liabilities is 8.60% p.a (g) The Company incurred Rs Nil (previous year F24.89 lakhs) for the year ended March 31,2021 towards expense relating to short term leases having tenure less than 12 months.

41 Amortisation of intangible assets

The intangible assets (Software expenditure) is amortised on estimated useful life of six years commencing from the year in which the expenditure is incurred.

45 The Company has made assessment of impact of COVID-19 on the carrying amount of property, plant and equipment, Investments, Inventories, receivables and other current assets.Based on current indicators of future economic conditions, the Company expects to recover the carrying amount of the assets. However in view of highly uncertain and continously evolving business environment, the eventual impact of COVID-19 may be different from the estimated as at the date of approval of these financial results.

Trade receivables are non-interest bearing and are generally on terms of 7 days to 30 days F2.76 lakhs (Previous year F5.10 lakhs) was recognised as provision for expected credit losses on trade receivables.

Trade receivables are presented net of impairment in the Balance sheet.

The Company classifies the right to consideration in exchange for deliverables as a receivable. Receivable is right to consideration that is unconditional upon passage of time.

C Contract Liabilities

The amount of revenue recognised during the year for the amount included in contract liability at the beginning of the year is F43.02 lakhs (previous year F392.60 lakhs)

E Performance obligation and remaining performance obligation

The performance obligation is satisfied upon the delivery of Writing and Printing Paper and payment is generally due within 7 days to 30 days after the delivery.

The remaining performance obligation disclosure provides the aggregate amount of the transaction price yet to be recognized as at the end of the reporting period and an explanation as to when the Company expects to recognize these amounts in revenue. As on 31st March, 2021, there were no remaining performance obligation as the same is satisfied upon delivery of goods/services.

47 Segment Reporting

Segment Reporting based on the guiding principles given in Ind AS 108 on âOperating Segmentsâ, the Companyâs business activity falls within a single operating segment, namely manufacturing of âWriting and Printing Paperâ. Accordingly, the disclosure requirements of Ind AS 108 are not applicable.

48 Dividend

The Board of Directors had recommended dividend of F3/- per equity share amounting to F414.74 lakhs for the year 2020-2021 during their meeting held on 11th May 2021. The dividend, as recommended by the Board of Directors, if approved at the Annual General Meeting, would be paid subject to deduction of tax (TDS) at the prescribed rates as per Income Tax Act,1961 as amended by Finance Act 2020.

49 Corporate Social Responsibility (CSR)

As per section 135 of the Companies Act, 2013, a company meeting the applicable threshold, need to spend atleast 2% of the average net profit for the immediate preceeding three financial years on CSR activities as defined in schedule-VII of the Companies Act 2013.

(a) Gross amount required to be spent by the company during the year F155.80 lakhs (previous year F118.26 lakhs).

(b) Amount spent during the year F112.61 lakhs (previous year F52.72 lakhs)

55 Financial instruments and Risk management i Capital management

The Companyâs management reviews its capital structure considering the cost of capital, the risks associated with each class of capital and the need to maintain adequate liquidity to meet its financial obligations when they become due. The Companyâs policy is to maintain a strong capital base so as to maintain investor, creditor and market confidence and to sustain future development of the business. Accordingly the management and the Board of Directors periodically review and set prudent limit on overall borrowing limits of the Company.

Further, there have been no breaches in the financial covenants of any interest-bearing loans and borrowing during the year ended 31^st March 2021 and 31^st March 2020.

There were no changes in the objectives, policies or processes for managing capital during the year ended 31^st March 2021 and 31^st March 2020.

iii. Financial risk management

The principal financial assets of the Company include investments, loans, trade and other receivables, and cash and bank balances that derive directly from its operations. The principal financial liabilities of the company, include loans and borrowings, trade and other payables and the main purpose of these financial liabilities is to finance the day to day operations of the company.

This note explains the risks which the company is exposed to and policies and framework adopted by the company to manage these risks:-

(A) Market risk management

The Company is exposed to foreign currency risk arising mainly on import (of raw materials and capital items) and export (of finished goods). The exchange rate between the Indian rupee and foreign currencies has changed substantially in recent years and may fluctuate substantially in the future. Consequently the company is exposed to foreign currency risk and the results of the company may be affected as the rupee appreciates/ depreciates against foreign currencies. Foreign exchange risk arises from the future probable transactions and recognised assets and liabilities denominated in a currency other than companyâs functional currency.

b) Interest rate risk management

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 Companyâs exposure to the risk of changes in market interest rates relates primarily to the Companyâs debt obligations with floating interest rates.

As the Company has no significant interest-bearing assets, the income and operating cash flows are substantially independent of changes in market interest rates. The Companyâs exposure to the risk of changes in market interest rates relates primarily to the Companyâs debt obligations with floating interest rates, which are included in interest bearing loans and borrowings in these financial statements. The companyâs fixed rate borrowings are carried at amortised cost. They are therefore not subject to interest rate risk, since neither the carrying amount nor the future cash flows will fluctuate because of a change in market interest rates.

c) Other Price Risk

i) Equity investments

The company is exposed to price risk arising from equity investments. The company does not actively trade equity investments. Equity investments are mainly held for strategic rather than trading purposes. Protection principle is given high priority by limiting companyâs investments top rated money market instruments only.

ii) Mutual fund investments

The Company manages the surplus funds majorly through investments in debt based and equity mutual fund schemes. The price of investment in these mutual fund Net Asset Value (NAV) declared by the Asset Management Company on daily basis is reflected by the movement in the NAV of invested schemes. The Company is exposed to price risk on such Investment schemes.

The Companyâs exposure in Equity Investments is not material. c.2 Mutual fund price sensitivity analysis

The sensitivity analysis below has been determined based on Mutual Fund Investment at the end of the reporting period. If NAV had been 1% higher/lower, the profit for year ended 31st March, 2021 would have increased/decreased by F /- 83.99 Lakhs (previous year: increase/decrease by F78.16 lakhs) as a result of the changes in fair value of mutual funds.

(B) Credit risk management

Credit risk arises from the possibility that a counter partyâs inability to settle its obligations as agreed in full and in time. The maximum exposure to credit risk in respect of Trade receivables and other financial assets is as under:-a. Trade Receivables

to whom goods are sold on credit terms in the normal course of business. Outstanding customer receivables are regularly monitored and any shipments to overseas customers are generally covered by letters of credit.

b. Other Financial Assets

Write off policy

The financial assets are written off in case there is no reasonable expectation of recovering from the financial asset.

The objective of liquidity risk management is to maintain sufficient liquidity to meet financial obligations of the Company as they become due. The Treasury Risk Management Policy includes an appropriate liquidity risk management framework for the management of the short-term, medium-term and long term funding and cash management requirements. The Company manages the liquidity risk by maintaining adequate cash reserves, banking facilities and reserve borrowing facilities by continuously monitoring forecast and actual cash flows and by matching the maturity profiles of financial assets and liabilities.

The Company has access to various fund / non-fund based bank financing facilities. The amount of unused borrowing facilities (fund and non-fund based) available for future operating activities and to settle commitments as at 31st March, 2021 F3092.76 lakhs (as at 31st March, 2020 F2996.96 lakhs).

Liquidity risk table

The below is the detail of contractual maturities of the financial liabilities of the company at the end of each reporting period along with contractual maturity of Financial assets:

There were no transfers between Level 1 and 2 in the period. Sensitivity of Level 3 financial instruments are insignificant.

Quoted equity investments: Fair value is derived from quoted market prices in active markets.

56 Figures in bracket indicate deductions.

57 Previous year figures have been regrouped/recasted/rearranged wherever necessary to confirm to its classification of the current year.

Mar 31, 2019

1 Corporate and General Information

Shreyans Industries Limited (âthe Companyâ) is a public company domiciled in India and incorporated on 11th June, 1979 under the provisions of the Companies Act, 1956. The name of the company at its incorporation was Shreyans Paper Mills Ltd. and subsequently changed to Shreyans Industries Limited on 20th October 1992. The company is engaged in the manufacturing of Writing and Printing Paper. The Company caters to both domestic and international market. The equity shares of the Company are listed on National Stock Exchange of India Ltd (NSE) and Bombay Stock Exchange Limited (BSE).

The registered office of the company is situated at Village Bholapur, P.O. Sahabana, Chandigarh Road, Ludhiana-141123, Punjab. The financial statements are approved for issue by the Companyâs Board of Directors on May 13, 2019.

2 (i) Critical accounting estimates

- Useful lives of property, plant and equipment

The estimated useful lives of property, plant and equipment are based on a number of factors including the effects of obsolescence, internal assessment of user experience and other economic factors (such as the stability of the industry, and known technological advances) and the level of maintenance expenditure required to obtain the expected future cash flows from the asset.

The Company reviews the useful life of property, plant and equipment at the end of each reporting date.

- Recoverable amount of property, plant and equipment

The recoverable amount of property plant and equipment is based on estimates and assumptions regarding the expected market outlook and expected future cash flows. Any changes in these assumptions may have a material impact on the measurement of the recoverable amount and could result in impairment.

- Post-retirement benefit plans

Employee benefit obligations are measured on the basis of actuarial assumptions including any changes in these assumptions that may have a material impact on the resulting calculations.

- Recognition of deferred tax assets

Recognition of deferred tax assets depends upon the availability of future profits against which tax losses carried forward can be used.

2 (i) Recent Accounting pronouncements:

a) Ind AS 116- Leases

On March 30, 2019, Ministry of Corporate Affairs has notified Ind AS 116, Leases. Ind AS 116 will replace the existing leases Standard, Ind AS 17 Leases, and related Interpretations. The Standard sets out the principles for the recognition, measurement, presentation and disclosure of leases for both parties to a contract i.e., the lessee and the lessor. Ind AS 116 introduces a single lessee accounting model and requires a lessee to recognize assets and liabilities for all leases with a term of more than twelve months, unless the underlying asset is of low value. Currently, operating lease expenses are charged to the statement of Profit and Loss. The Standard also contains enhanced disclosure requirements for lessees. Ind AS 116 substantially carries forward the lessor accounting requirements in Ind AS 17.

The effective date for adoption of Ind AS 116 is annual periods beginning on or after April 1, 2019. The standard permits two possible methods of transition:

Full retrospective- Retrospectively to each prior period presented applying Ind AS 8 Accounting Policies, Changes in Accounting Estimates and Errors

Modified retrospective- Retrospectively, with the cumulative effect of initially applying the Standard recognized at the date of initial application.

Under modified retrospective approach, the lessee records the lease liability as the present value of the remaining lease payments, discounted at the incremental borrowing rate and the right of use asset either as:

Its carrying amount as if the standard had been applied since the commencement date, but discounted at lesseeâs incremental borrowing rate at the date of initial application or an amount equal to the lease liability, adjusted by the amount of any prepaid or accrued lease payments related to that lease recognized under Ind AS 17 immediately before the date of initial application.

Certain practical expedients are available under both the methods

On completion of evaluation of the effect of adoption of Ind AS 116, the Company is proposing to use the âModified Retrospective Approachâ for transitioning to Ind AS 116, and take the cumulative adjustment to retained earnings, on the date of initial application (April 1, 2019). Accordingly, comparatives for the year ended March 31, 2019 will not be retrospectively adjusted. The Company has elected certain available practical expedients on transition.

b) Ind AS 12- Appendix C- Uncertainty over Income Tax Treatments

On March 30, 2019, Ministry of Corporate Affairs has notified Ind AS 12 Appendix C, Uncertainty over Income Tax Treatments which is to be applied while performing the determination of taxable profit (or loss), tax bases, unused tax losses, unused tax credits and tax rates, when there is uncertainty over income tax treatments under Ind AS 12. According to the appendix, companies need to determine the probability of the relevant tax authority accepting each tax treatment, or group of tax treatments, that the companies have used or plan to use in their income tax filing which has to be considered to compute the most likely amount or the expected value of the tax treatment when determining taxable profit (tax loss), tax bases, unused tax losses, unused tax credits and tax rates. The standard permits two possible methods of transition-

i) Full retrospective approach- Under this approach, Appendix C will be applied retrospectively to each prior reporting period presented in accordance with Ind AS 8- Accounting Policies, Changes in Accounting Estimates and Errors, without using hindsight.

ii) Retrospectively with cumulative effect of initially applying Appendix C recognized by adjusting equity on initial application, without adjusting comparatives.

The effective date for adoption of Ind AS 12 Appendix C is annual periods beginning on or after April 1, 2019. The Company will adopt the standard on April 1, 2019 and has decided to adjust the cumulative effect in equity on the date of initial application i.e. April 1, 2019 without adjusting comparatives.

The effect on adoption of Ind AS 12 Appendix C would be insignificant in the standalone financial statements.

Amendment to Ind AS 12 - Income taxes

On March 30, 2019, Ministry of Corporate Affairs issued amendments to the guidance in Ind AS 12, âIncome Taxesâ, in connection with accounting for dividend distribution taxes.

The amendment clarifies that an entity shall recognise the income tax consequences of dividends in profit or loss, other comprehensive income or equity according to where the entity originally recognised those past transactions or events.

Effective date for application of this amendment is annual period beginning on or after April 1, 2019. The Company does not have any impact on account of this amendment.

c) Amendment to Ind AS 19 - plan amendment, curtailment or settlement.

On March 30, 2019, Ministry of Corporate Affairs issued amendments to Ind AS 19, âEmployee Benefitsâ, in connection with accounting for plan amendments, curtailments and settlements.

The amendments require an entity:

- to use updated assumptions to determine current service cost and net interest for the remainder of the period after a plan amendment, curtailment or settlement; and

- to recognise in profit or loss as part of past service cost, or a gain or loss on settlement, any reduction in a surplus, even if that surplus was not previously recognised because of the impact of the asset ceiling.

Effective date of application of this amendment is annual period beginning on or April 1,2019.

Notes:

1. The cost of inventories recognised as an expense during the year was RS.27312.18 lakhs (previous year : RS.24644.64 lakhs).

2. The mode of valuation of inventories has been stated in Note 2 (j) on Accounting policy for inventories i.e. at cost or net realisable value which ever is lower

3. Inventories are hypothecated against loans repayable on demand from banks. (Refer Note 24 on Borrowings)

Trade receivables includes RS.1.08 lakhs, (Previous year RS.2.16 lakhs) due from Related Party

The Company has used a practical expedient by computing the expected loss allowances for trade receivables based on historical credit loss experience

b) Rights, preferences and restrictions attached to equity shares

The company presently has one class of equity shares having a par value of RS.10/- each. Each holder of equity shares is entitled to one vote per equity share. The dividend if proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting.

The Board has recommended a Dividend of RS.5/- per equity share of RS.10/-, i.e 50% including one time special dividend of RS.3/- per equity share for the financial year ended March 31, 2019 (Previous year 18%) subject to the approval of the Shareholders in the ensuing Annual General Meeting.

d) Detail of Shares held by holding company/ ultimate holding company their subsidiaries and associates

There is no holding /ultimate holding company of the company and therefore no subsidiary/associate of holding / ultimate holding company.

e) Aggregate number and class of share alloted as fully paid-up pursuant to contract(s) without payment being received in cash, bonus shares and shares bought back for the period of five year immediately preceding the balance sheet date:

Note

I Nature and purpose of reserve

a) Capital reserve: The amount of capital profit on reissue of forfeited shares is recognised as Capital Reserve.

b) Securities premium account: The amount received in excess of face value of the equity shares is recognised in Securities Premium Reserve. It can be utilized in accordance with the provisions of the Companies Act 2013, for issuance of bonus shares, to provide for premium on redemption of shares or debentures, write-off equity related expenses like underwriting costs etc

d) Retained earnings: Retained earnings are the accumulated profit earned by the Company till date less transfer to General Reserve and payment of Dividend (including dividend distribution tax).

e) Other comprehensive income: Remeasurements of defined benefit liability/(asset) comprises actuarial gains and losses and return on plan assets (excluding interest income).

Rights attached to preference shares

The company has not issued preference shares during the current and previous year.

a) Details of security for term loans

i Term loans from banks (other than vehicles) are secured by a joint equitable mortgage created or to be created on immovable properties both present and future, situated at Ahmedgarh and Banah in the state of Punjab and hypothecation of whole of movable plant and machinery, machinery spares, tools and accessories and other movable, both present and future (save and except book debts ) subject to the charge created or to be created by the company in favour of its bankers for its working capital loans. Term loans from banks are also personally guaranteed by promoter directors of the company.

ii Term loans from banks and others for vehicles are secured by way of hypothecation of vehicles purchased out of such loans.

* Note: Figures of term loan stated above in para (a) includes current maturities of long term debt shown separately in Note No 26 ** Repaid during the year

c Terms of repayment of term loans from others

Repayment schedule of unsecured loans/deposits from related parties is within period of 3 years from the date of acceptance and carry interest upto 11 % p.a (Previous year upto 11% p.a)

Repayment schedule of unsecured loans/deposits from shareholders/public is within period of 3 years from the date of acceptance and carry interest upto 11 % p.a (Previous year upto 11% p.a)

Details of security of loans repayable on demand (secured)

i) Secured loans repayable on demand from banks for working capital RS.641.08 lakhs (previous year RS.847.88 lakhs) are secured by hypothecation of stocks of raw materials, finished goods, bills receivables, book debts and all other movable assets of the company and further secured by way of second charge on the immovable assets situated at village Banah and at Ahmedgarh and also personally guaranteed by two promotor directors of the company.

ii) The Company has obtained overdraft facility from Bank against pledge of current investment as stated in Note No 9. However outstanding balance against this facility is FNil ( previous year FNil)

*Current maturities of Long term debt includes RS.55.87 lakhs (previous year RS.128.58 lakhs) as deposits from shareholders and public, and RS.10.08 lakhs (previous year RS.15.72 lakhs) as deposits from related parties.

# As at the year end there is no amount due for payment to the Investor Education and Protection Fund under Section 125 of Companies Act, 2013.

3 Contingent liabilities and commitments (to the extent not provided for)

(No cash outflow is expected)

A Contingent Liabilities

a) Claims against the company not acknowledged as debt in respect of direct and ind irect taxes amoun ted to RS.220.19 lakhs (previous year RS.224.90 lakhs). These matters are pending before various Appellate authorities. According to the management and tax advisors that the demand raised is not in accordance with the provisions of respective laws and its ultimate resolution will not have a material adverse effect on the company financial position and result of operations.

Amount paid to statutory authorities against above tax claims amounted to RS.101.20 lakhs (previous year RS.101.20 lakhs) is included under Note 7 âOther non current assetsâ.

Liability on account of outstanding bank guarantees and letter of credit is RS.2675.64 lakhs (previous year RS.2162.52 lakhs).

The assumptions and methodology used in actuarial valuation are consistent with the requirements of Ind AS 19

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

ix) The plan typically exposes the Company to actuarial risks such as: investment risk, interest rate risk, longevity risk and salary risk. Investment Risk

The Probability or likelihood of occurrence of losses relative to the expected return on any particular investment.

Interest risk

If the Discount Rate i.e the yield on the Government Bonds decrease in future, the Actuarial Liability will increase and vice versa. The quantum of increase in valuation liability corresponding to specific decrease in the Discount Rate and vice versa, has been shown at point no. (x) below containing the sensitivity Analysis of Key Actuarial Assumption.

Longevity risk

If the Mortality rate experienced by the staff of a particular company is higher than what is assumed in mortality Table used in the valuation, the valuation liability will increase.

However, it will be very cumbersome to measure the quantum of increase for assumed reduction of Mortality rates as can be done in case of changes in salary Growth Rate and Interest Rate.

Salary risk

If the salary Growth Rate over the future years of services is increased, the Actuarial Liability will increase and vice versa. The quantum of increase in the valuation liability corresponding to specific increase in the salary growth rate and vice versa has been shown at point no. (x) below containing Sensitivity Analysis of Key Actuarial Assumption.

xii) The company expects to contribute RS.130 lakhs to the gratuity trust during the fiscal 2020

xiii) The average duration of the defined benefit plan obligation at the end of the reporting period is 13.03 years (previous year 13.18 years)

4 Disclosures as required by Indian Accounting Standard (Ind AS) 17 Lease

Operating lease commitments:

(i) Company as a Lessee

The aggregate lease rentals payable are charged as Rent under âOther Expensesâ.The Companyâs significant leasing arrangements are primarily in respect of operating leases for premises. These lease arrangements range for a period between 11 months and 5 years. Most of the leases are renewable for further period on mutually agreeable terms and also include escalation clauses.The aggregate lease rentals payable are charged as Rent under âOther Expensesâ.

5 Amortisation of intangible assets

Softwares have been amortised on estimated useful life of six years.

6 In accordance with the Ind AS-36 on Impairment of Assets, the Company has assessed as on the balance sheet date, whether there are any indications with regard to the impairment of any of the assets. Based on such assessment, it has been ascertained that no potential loss is present and therefore, formal estimate of recoverable amount has not been made. Accordingly, no impairment loss has been provided in the books of account.

7 Sales includes excise duty collected from customers of FNil (Previous year RS.614.41 lakhs). Revenue from operations for previous period upto 30 June,2017 includes excise duty. From 1st July 2017 onwards, the excise duty and most indirect taxes in india have been replaced with Goods and services tax(GST). The company collects GST on behalf of Government. Hence GST is not included in Revenue from operations. In view of aforesaid change in indirect taxes, the Revenue from operation for year ended 31 March,2019 is not comparable with 31 March,2018 to this extent.

Trade receivables are non-interest bearing and are generally on terms of 7 days to 30 days. In 2019 RS.5.32 lakhs (Previous year RS.6.34 lakhs) was recognised as provision for expected credit losses on trade receivables.

Trade receivables are presented net of impairment in the Balance sheet. The Company classifies the right to consideration in exchange for deliverables as a receivable. Receivable is right to consideration that is unconditional upon passage of time.

C Contract Liabilities

Revenue recognised that was included in the contract liability balance at the beginning of the period

E Performance obligation and remaining performance obligation

The performance obligation is satisfied upon the delivery of Writing and Printing Paper and payment is generally due within 7 days to 30 days after the delivery.

The remaining performance obligation disclosure provides the aggregate amount of the transaction price yet to be recognized as at the end of the reporting period and an explanation as to when the Company expects to recognize these amounts in revenue. As on 31st March, 2019, there were no remaining performance obligation as the same is satisfied upon delivery of goods/services.

8 Segment Reporting

9 Proposed Final Dividend

The Board of Directors have recommended a final dividend of RS.5 per equity share amounting to RS.833.31 lakhs (including dividend distribution tax) for the year 2018-2019 which includes a one-time special dividend of RS.3 per equity share (previous year final dividend RS.1.80/- per equity share amounting to RS.299.99 lakhs) after the Balance Sheet date. The same is subject to approval by the shareholders at the ensuing Annual General Meeting of the Company and therefore proposed final dividend (including dividend distribution tax) has not been recognised as a liability as at the Balance sheet date in line with Ind AS 10 "Events after the reporting period".

10 Corporate Social Responsibility (CSR)

As per section 135 of the Companies Act, 2013, a company meeting the applicable threshold, need to spend at least 2% of the average net profit for the immediate preceding three financial years on CSR activities as defined in schedule-VII of the Companies Act 2013.

(a) Gross amount required to be spent by the company during the year RS.77.11 lakhs ( previous year RS.38.53 lakhs).

(b) Amount spent during the year RS.43.59 lakhs (previous year RS.22.75 lakhs)

(d) CSR activities undertaken

11 Earning per share

The calculation of Earning Per Share (EPS) as disclosed in the Statement of profit and loss has been made in accordance with Ind AS- 33 on "Earnings Per Share". The following is a reconciliation of the equity shares used in the computation of basic and diluted earnings per equity share:

*** As the liabilities for gratuity, compensated absences are provided on an actuarial basis for the Company as a whole, the amount pertaining to key managerial personnel has not been included.

Mr. Rajneesh Oswal, Mr Vishal Oswal and Mr Kunal Oswal are related to each other.

The related party relationship is as identified by the Company and relied upon by the auditors.

12 Financial instruments and Risk management i Capital management

Further, there have been no breaches in the financial covenants of any interest-bearing loans and borrowing in the current year ended 31st March 2019. There were no changes in the objectives, policies or processes for managing capital during the year ended 31st March, 2019 and 31st March, 2018.

iii. Financial risk management

The principal financial assets of the Company include loans, trade and other receivables and cash and bank balances that derive directly from its operations. The principal financial liabilities of the company, include loans and borrowings, trade and other payables and the main purpose of these financial liabilities is to finance the day to day operations of the company.

This note explains the risks which the company is exposed to and policies and framework adopted by the company to manage these risks:-

(A) Market risk management

a.1 Foreign currency risk management

a.2 Foreign currency sensitivity analysis

Any changes in the exchange rate of EURO and USD against INR is not expected to have significant impact on the Companyâs profit due to the less exposure of these currencies. Accordingly, a 5% appreciation/depreciation of the INR as indicated below, against the EURO and USD would have increased/reduced profit by the amounts shown below. This analysis is based on the foreign currency exchange rate variances that the Company considered to be reasonably possible at the end of the reporting period.The impact on the Companyâs profit before tax due to change in the fair value of monetary assets and liabilities including foreign currency derivatives on account of reasonably possible change in USD/EURO exchange rates (with all other variables held constant).

b) Interest rate risk management

At the reporting date the interest rate profile of the Companyâs interest bearing financial instrument is at its fair value:

Cash flow sensitivity analysis for variable rate instruments

The following table demonstrates the sensitivity to a reasonably possible change in interest rates on that portion of loans and borrowings affected. A change of 100 basis points in interest rates for variable rate instruments at the reporting date would have increased/(decreased) profit or loss for the below years by the amounts shown below. With all other variables held constant, the Companyâs profit before tax is affected through the impact on floating rate borrowings, as follows:

c) Other Price Risk

The company is exposed to price risk arising from equity investments. The company manages equity price risk by investing in fixed deposits/Fixed Maturity Plan, debt instruments and Liquid funds. The company does not actively trade equity investments. Equity investments are mainly held for strategic rather than trading purposes. Protection principle is given high priority by limiting companyâs investments top rated money market instruments only.

The Company manages the surplus funds majorly through investments in debt based and equity mutual fund schemes. The price of investment in these mutual fund Net Asset Value (NAV) declared by the Asset Management Company on daily basis as reflected by the movement in the NAV of invested schemes. The Company is exposed to price risk on such Investment schemes.

c.1 Equity price sensitivity analysis

The sensitivity analysis below has been determined based on the exposure to equity price risks at the end of the reporting period.

The Companyâs exposure in Equity Investments is not material.

c.2 Mutual fund price sensitivity analysis

The sensitivity analysis below has been determined based on Mutual Fund Investment at the end of the reporting period. If NAV had been 1% higher/lower, the profit for year ended 31st March, 2019 would have increased/decreased by F /- 61.18 Lakhs (Previous year : increase/decrease by RS.40.37 lakhs) as a result of the changes in fair value of mutual funds.

(B) Credit risk management

a. Trade Receivables

The Companyâs trade receivables consists of a large and diverse base customers including State owned Enterprises. Hence the Company is not exposed to concentration and credit risk. The company also assesses the credit worthiness of the customers internally to whom goods are sold on credit terms in the normal course of business. Outstanding customer receivables are regularly monitored and any shipments to overseas customers are generally covered by letters of credit.

Trade Receivables

Out of the Trade receivables, RS.2210.80 lakhs as at 31st March 2019 (RS.2263.64 lakhs as at 31st March 2018) is due from the Companyâs major customers i.e. having more than 5% of total outstanding trade receivables. There are no other customers who represent more than 5% of the total balance of trade receivables.

The maximum exposure to credit risk at the reporting date is the carrying value of trade receivables as disclosed at Note 10.

b. Other Financial Assets

Write off policy

The financials assets are written off in case there is no reasonable expectation of recovering from the financial asset.

The Company has access to various fund / non-fund based bank financing facilities. The amount of unused borrowing facilities (fund and non-fund based) available for future operating activities and to settle commitments as at 31st March, 2019 RS.2238.92 lakhs (as at 31st March, 2018 RS.2827.80 lakhs).

Liquidity risk table

The below is the detail of contractual maturities of the financial liabilities of the company at the end of each reporting period

iv Fair Value Measurement

(i) Fair Value hierarchy

Level 1- Quoted prices (unadjusted) in active markets for identical assets or liabilities

Level 2- Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices)

Level 3- Inputs for the assets or liabilities that are not based on observable market data (unobservable inputs).

There were no transfers between Level 1 and 2 in the period. Sensitivity of Level 3 financial instruments are insignificant.

Investments in mutual funds: Fair value is determined by reference to quotes from the financial institutions, i.e. net asset value (NAV) for investments in mutual funds declared by mutual fund house.

Quoted equity investments: Fair value is derived from quoted market prices in active markets.

Unquoted equity investments: Fair value is derived on the basis of net asset value approach, in this approach the net asset value is used to capture the fair value of these investments.

13 Figures in bracket indicate deductions.

14 Previous year figures have been regrouped/recasted/rearranged wherever necessary to confirm to its classification of the current year.

Mar 31, 2018

1 Corporate Information

Shreyans Industries Limited (âthe Companyâ) is a public company domiciled in India and incorporated on 11th June, 1979 under the provisions of the Companies Act, 1956.The name of the company at its incorporation was Shreyans Paper Mills Ltd. and subsequently changed to Shreyans Industries Limited on 20th October 1992. The company is engaged in the manufacturing of Writing and Printing Paper. The Company caters to both domestic and international market. The equity shares of the Company are listed on National Stock Exchange of India Limited (NSE) and Bombay Stock Exchange Limited (BSE).

Notes :

1. The tangible assets are hypothecated /mortgaged to secure borrowings of the company (refer note 18)

2. The Company has elected to measure all its Property, Plant and Equipment at Previous GAAP carrying amount as at 31st March, 2016 as its deemed cost for Gross Block on the date of transition to Ind AS i.e. 1st April, 2016

The company has availed the exemption available under Ind AS 101, whereas the carrying value of Property, plant and equipment has been carried forwarded at the amount as determined under the previous GAAP netting of Ind AS adjustment such as government grants and processing fee etc.. Considering the FAQ issued by the ICAI, regarding application of deemed cost, the company has disclosed the cost as at 1st April 2016 net of accumulated depreciation. However, information regarding gross block of assets, accumulated depreciation has been disclosed by the company separately as follows:

Notes:

1. The cost of inventories recognised as an expense during the year was Rs.24644.64 lakhs (for the year ended 31^st March, 2017: Rs.22799.12 lakhs).

2. The mode of valuation of inventories has been stated in Note 2 (i) on Accounting policy for inventories i.e. at cost or net realisable value which ever is lower

3. Inventories are hypothecated against loans repayable on demand from banks. (refer Note 23 on Borrowings)

(Trade receivables includes Rs.2.16 lakhs , (31st March 2017 Rs. Nil, 01st April 2016 Rs. Nil) due from Firms/Pvt Companies in which any director is a partner/director/member)

The Company has used a practical expedient by computing the expected loss allowances for the trade receivable based on historical credit loss experience

b) Rights, preferences and restrictions attached to equity shares

The company presently has one class of equity shares having a par value of F10 each. Each holder of equity shares is entitled to one vote per equity share. The dividend if proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting.

The Board has recommended a Dividend of 18% (Previous year 15%) (Rs.1.80 per equity share of Rs.10) for the financial year ended March 31, 2018 subject to the approval of the Shareholders in the ensuing Annual General Meeting.

d) Detail of Shares held by holding company/ ultimate holding company their subsidiaries and associates

There is no holding /ultimate holding company of the company and therefore no subsidiary/associate of holding / ultimate holding company.

Note

I Nature and purpose of reserve

a) Capital reserve: The amount of capital profit on reissue of forfeited shares is recognised as Capital reserve.

c) General Reserve: General Reserves are the free reserves of the Company which are kept aside out of Company''s profit to meet future requirement as and when they arise. The Company had transferred a portion of the profit after tax to General reserves pursuant to the earlier provisions of the Companies Act ''1956. Mandatory transfer to General Reserve is not required under the Companies Act'' 2013.

d) Retained earnings: Retained earnings are the accumulated profit earned by the Company till date less transfer to General Reserve, payment of Dividend (including dividend distribution tax).

e) Other comprehensive income: Remeasurements of defined benefit liability/(asset) comprises actuarial gains and losses and return on plan assets (excluding interest income).

a) Details of security for term loans

i Term loans from banks (other than vehicles) are secured by a joint equitable mortgage created or to be created on immovable properties both present and future, situated at Ahmedgarh and Banah in the state of Punjab and hypothecation of whole of movable plant and machinery, machinery spares, tools and accessories and other movable, both present and future (save and except book debts ) subject to the charge created or to be created by the company in favour of its bankers for its working capital loans. Term loans from banks are also personally guaranteed by promoter directors of the company.

c Terms of repayment of term loans from others

Repayment schedule of unsecured loans/deposits from related parties is within period of 3 years from the date of acceptance and carry interest upto 11% p.a (Previous year upto 11% p.a)

Repayment schedule of unsecured loans/deposits from shareholders/public is within period of 3 years from the date of acceptance and carry interest upto 11% p.a (Previous year upto 11% p.a)

Details of security of loans repayable on demand (secured)

i) Secured loans repayable on demand from banks for working capital Rs.847.88 lakhs ,(31^st March 2017 Rs.962.70 lakhs,1^st April 2016 Rs.1645.09 Lakhs) are secured by hypothecation of stocks of raw materials, finished goods, bills receivables, book debts and all other movable assets of the company and further secured by way of second charge on the immovable assets situated at village Banah and at Ahmedgarh and also personally guaranteed by the two promoter directors of the company.

ii) Secured loans repayable on demand from banks against overdraft limit Rs.Nil, ( 31^st March, 2017 Rs.42.05 lakhs,1^st April, 2016 Rs.273.29 lakhs) are secured by lien on current investments.

"Current maturities of Long term debt includes Rs.128.58 lakhs (31^st March 2017, Rs.57.05 lakhs, 01^st April 2016, Rs.Nil) as deposits from shareholders, and Rs.15.72 lakhs (31^st March 2017, Rs.50.26 lakhs, 01^st April 2016, Rs.8.27 lakhs) ) as deposits from related parties.

# As at the year end there is no amount due for payment to the Investor Education and Protection Fund under Section 125 of Companies Act, 2013.

"These matters are subject to legal proceedings in the ordinary course of business. In the opinion of the management, legal proceedings when ultimately concluded will not have a material effect on the results of operations or financial position of the company. As against this, a sum of Rs.101.20 lakhs (previous year Rs.80.50 lakhs) has been deposited under protest and included under Note 7 âOther non current assets''.

#Bonds executed in favour of The President of India under sub section (I) of the section 142 of the Custom Act 1962 for fulfillment of the obligation under the said Act.

vi) The major categories of plan assets as a percentage of the fair value of total plan assets investment with the insurer

The plan assets Rs.1528.81 lakhs as on 31^st March, 2018 (Rs.1200.97 lakhs as on 31^st March, 2017) are maintained with the Life Insurance Corporation of India (LIC). The detail of investments maintained by LIC have not been furnished to the Company. The same have, therefore, not been disclosed.

The assumptions and methodology used in actuarial valuation are consistent with the requirements of Ind AS 19

ix) The plan typically exposes the Company to actuarial risks such as: investment risk, interest rate risk, longevity risk and salary risk.

Investment Risk

The Probability or likelihood of occurrence of losses relative to the expected return on any particular investment.

Interest risk

Longevity risk

If the Mortality rate experienced by the staff of a particular company is higher than what is assumed in mortality Table used in the valuation, the valuation liability will increase.

However, it will be very cumbersome to measure the quantum of increase for assumed reduction of Mortality rates as can be done in case of changes in salary Growth Rate and Interest Rate.

Salary risk

If the salary Growth Rate over the future years of services is increased, the Actuarial Liability will increase and vice versa. The quantum of increase in the valuation liability corresponding to specific increase in the salary growth rate and vice versa has been shown in the annexure containing Sensitivity Analysis of Key Actuarial Assumption.

2 The Company''s significant leasing arrangements are primarily in respect of operating leases for premises. These lease arrangements range for a period between 11 months and 5 years. Most of the leases are renewable for further period on mutually agreeable terms and also include escalation clauses.

3 Amortisation of intangible assets

Software has been amortised on estimated useful life of six years.

4 In accordance with the Ind AS-36 on Impairment of Assets, the Company has assessed as on the balance sheet date, whether there are any indications with regard to the impairment of any of the assets. Based on such assessment it has been ascertained that no potential loss is present and therefore, formal estimate of recoverable amount has not been made. Accordingly no impairment loss has been provided in the books of account.

5 Disclosure under the Micro, Small and Medium Enterprises Development Act, 2006

(a) There are no Micro and Small Enterprises to whom the Company owes dues which are outstanding for more than 45 days as at 31st March, 2018.This information as required to be disclosed under the Micro, Small and Medium Enterprises Development Act, 2006 has been determined to the extent such parties have been identified on the basis of information available with the Company. This has been relied upon by the auditors.

(b) Disclosure in accordance with Section 22 of the MSMED Act read with Notification No. GSR 679(E) dated 4th September 2015 issued by the Ministry of Corporate Affairs :

6 In accordance with Ind AS 18 on âRevenueâ and Schedule III to the Companies Act, 2013, Revenue from Operations for the previous year ended 31 March 2017 and for the period 1 April 2017 to 30 June 2017 were reported gross of Excise Duty and net of VAT/ CST. Excise Duty was reported as a separate expense line item. Consequent to the introduction of Goods and Services Tax (GST) with effect from 1 July 2017, VAT/CST, Excise Duty etc. have been subsumed into GST and accordingly the same is not recognised as part of sales as per the requirements of Ind AS 18. This has resulted in lower reported sales in the current year in comparison to the sales reported under the pre-GST structure of indirect taxes. With the change in structure of indirect taxes, certain expenses where credit of GST is available are also being reported net of taxes.

7 Exceptional Item

Punjab State Power Corporation Ltd (earlier known as Punjab State Electricity Board) levied the Voltage Surcharge for not converting from 11KV to 66 KV transmission for period October 2004 to June 2009. The Hon''ble Supreme Court of India vide order dated 01st March 2017 has partially allowed the appeal of the Company, but upheld the demand for Rs.911.83 lakhs. In view of this the following has been shown under the Exceptional items:-

8 The company is a single segment company engaged in manufacture of Writing and Printing Paper. Accordingly the disclosure requirement as contained in the Ind AS- (108) on â Operating Segmentsâ are not applicable.

Information about Major Customer: Included in revenues arising from direct sales of ''Paper'' of Rs.42681.14 lakhs during the year ended 31st March 2018 are revenues of approximately 16.85% which arose from sales to the Company''s largest customer. No customer individually contributed 10% or more to the Company''s revenue for the year ended 31^st March, 2017.

9 Subsequent Events

The Board of Directors at its meeting held on 25^th May, 2018 has recommended a dividend of Rs.1.80 per equity share of F10 each (total dividend Rs.299.99 lakhs) for the year ended 31^st March, 2018, subject to approval of shareholders at the Annual General Meeting to be held on 10^th August 2018.

10 Corporate Social Responsibility (CSR)

(a) Gross amount required to be spent by the company during the year Rs.38.53 lakhs ( P.Y Rs.29.15 lakhs).

11. The company has strategy of entering into derivative instruments for hedging its foreign currency risk arising from underlying transactions and according to risk strategy of the company, It does not use derivative instruments for speculative purposes. The detail of underlying foreign currency transactions and outstanding hedging instruments as on 31.03.2018 are as under:

12 First time adoption of Ind AS and reconciliation notes

This financial statement is the first financial statement that has been prepared in accordance with Ind AS together with the comparative period data as at and for the year ended 31^st March 2017, as described in the summary of significant accounting policies. The transition to Ind AS has been carried out in accordance with Ind AS 101 "First time adoption of Indian Accounting Standards" with 1^st April 2016 as transition date.

This note explains the exemptions availed by the company on first time adoption of Ind AS and principal adjustments made by the Company in restating its previous GAAP financial statements as at 1^st April 2016 and financial statements as at and for the year ended 31^st March 2017 in accordance with Ind AS 101.

Exemptions applied

Ind AS 101 allows first-time adopters certain exemptions from the retrospective application of certain requirements under Ind AS. The Company has, accordingly, applied following exemptions:

a) The company has elected to continue with the carrying value of all items of its property, plant and equipment and intangible asstes measured as per previous GAAP as recognized in the financial statements as at the date of transition, as deemed cost at the date of transition. The effect of consequential changes arising on the application of other Ind AS has been adjusted to the deemed cost of Property, Plant and Equipment.

b) The company has availed the exemption of fair value measurement of financial assets or liabilities at initial recognition and accordingly will apply fair value measurement of financial assets or liabilities at initial recognition prospectively to transactions entered into on or after 1^st April 2016.

c) The estimates as at 1^st April 2016 and at 31^st March 2017 are consistent with those made for the same dates in accordance with previous GAAP (after adjustments to reflect any differences in accounting policies) apart from the following items under previous GAAP did not require estimation:

- Fair values of Financials Assets

- Impairment of financial assets based on expected credit loss modal

- Discount rates

The estimates used by the company to present these amounts in accordance with Ind AS reflect conditions as at 1^st April 2016 and 31^st March 2017.

1. Leasehold land

Under previous GAAP, land on lease was not covered under ''Leases'' and therefore it was shown as Property, Plant and Equipments. Under Ind AS, land on lease is considered as operating lease. Therefore, net block of leasehold land (31^st March 2017 Rs.0.49 lakhs , 1^st April 2016 Rs.0.50 lakhs ) has been re-classified under the head âOther non-current assetsâ (31^st March 2017 Rs.0.48 lakhs, 1^st April 2016 Rs.0.49 lakhs), and âOther current assetsâ (31^st March 2017 Rs.0.01 lakhs, 1^st April 2016 Rs.0.01 lakhs) as ''Prepayments of leasehold land''. Further, the amortization of leasehold payment for the year ended 31^st March 2017 amounting Rs.0.01 lakhs has been reclassified from ''Depreciation and amortization'' to ''Other expenses''. However, the same has no impact on the total equity as at 31^st March, 2017.

2. Fair valuation of Investments

Under previous GAAP, investments in equity instruments, mutual funds and debt securities were classified as long term investments or current investments based on the intended holding period and realisability. Long term investments were classified at cost less provision for other than temporary diminution in the value of investments. Current investments were carried at lower of cost and fair value. Ind AS requires such investments to be measured at fair value.

The company has designated such investments as investments measured at FVTPL/FVTOCI/amortized cost in accordance with Ind AS. The difference between the instrument''s fair value and carrying amount as per previous GAAP has been recognized in retained earnings. This has resulted in increase in retained earnings of Rs.557.58 lakhs and Rs.376.29 lakhs as at 31^st March 2017 and 1^st April 2016 respectively and increase in net profit of Rs.181.29 lakhs for the year ended 31^st March 2017.

3. Financial instruments measured at amortized cost

Under previous GAAP, interest free loan to employees is recorded at their transaction value. Under Ind AS, these loans are to be measured at amortized cost on the basis of effective interest rate method. Due to this, loans to employees have been decreased and difference between carrying amount and amortized cost has been recognized as ''Deferred employee cost'' under the head ''Other noncurrent assets'' (31^st March 2017 Rs.0.38 lakhs, 1^st April 2016 Rs.0.28 Lakhs). Further, Employee benefit expense have been increased due to amortisation of the deferred employee benefit of Rs.0.36 lakhs which is offset by the notional interest income on loan to employee of Rs.0.36 Lakhs for the year ended 31^st March 2017.

4. Derivative Instruments

The fair value of derivative instruments is recognized under Ind AS which was not recognized under previous GAAP. Derivative instruments at fair value through profit or loss reflect the positive change in fair value of those foreign exchange forward contracts that are not designated in hedge relationships, but are, nevertheless, intended to reduce the level of foreign currency risk for expected sales and purchases. Accordingly, difference on account of fair valuation of these instruments has been adjusted in retained earnings in accordance with Ind AS. This has resulted in decrease in retained earnings of Rs.1.36 Lakhs and Rs.4.51 lakhs as at 31^st March 2017 and 1^st April 2016 respectively and increase in net profit of F3.15 lakhs for the year ended 31^st March 2017.

5. Borrowings

Under previous GAAP, transaction costs incurred in connection with borrowings were capitalised to Property, Plant and Equipments or amortised upfront and charged to profit or loss for the period. Under Ind AS, transaction costs are included in the initial recognition amount of financial liability and charged to profit or loss using the effective interest method. This has resulted in :-

a) decrease in Property, Plant and Equipment (net of accumulated depreciaion by Rs.18.00 lakhs and Rs.18.66 lakhs as at 31^st March 2017 and 1^st April 2016 respectively, and increase in the net profit for the year ended 31^st March 2017 by Rs.0.66 lakhs towards depreciation on Property, Plant and Equipment decapitalised.

b) decrease in long term borrowings on account of unamortized amount of processing charges with a corresponding adjustment in retained earnings of Rs.7.95 lakhs and Rs.12.82 lakhs as at 31st March 2017 and 1st April 2016 respectively and decrease in the net profit for the year ended 31st March 2017 by Rs.4.87 lakhs.

6. Capital grant

(I) Under previous GAAP, certain capital grant received from Government as ''Promoter Contribution'' is shown under the head ''Capital reserve''. Under Ind AS, such grant is treated as deferred income and is recognized as income over the useful life of the assets for which such grant is received. This has resulted in decrease in Capital reserve (31st March 2017 F64.49 Lakhs, 1st April 2016 Rs.64.49 lakhs) with a corresponding adjustment in retained earnings (31^st March 2017 Rs.64.49 lakhs, 1^st April 2016 Rs.64.49 lakhs)

(ii) Under previous GAAP, Government grant related to Property, plant and equipment is reduced from the cost of respective asset. Under Ind AS, Government grant related to Property, plant and equipment is treated as deferred income and is recognized in the statement of profit and loss on a systematic basis over the useful life of the asset. This has resulted in increase in Property, Plant and Equipment (net of accumulated depreciation) (31^st March 2017 Rs.116.27 lakhs,1^st April 2016 Rs.123.22 lakhs)

This further resulted in increase in Other Liablites towards deferred income for capital subsidy under the head "Non Current Liabilities" (31^st March 2017 Rs.114.04 lakhs, 1^st April 2016 Rs.121.89 lakhs) and "Current Liabilities" (31^st March 2017 Rs.7.85 lakhs,1^stApril 2016 Rs.7.85 lakhs). The differential amount has been adjusted in Retained Earnings.

The profit for the year ended 31^st March 2017 has been increased with Rs. 0.90 lakhs on account of difference between income of capital grant amounting to Rs.7.85 lakhs and the depreciation amounting to Rs.6.95 lakhs pertaining to financial year 2015-16 related to the grant earlier decapitalized in fixed assets under previous GAAP.

7. Proposed Dividend

Under previous GAAP, proposed dividend (including Dividend Distribution Tax) is recognized as a liability in the period to which it relates, irrespective of when it is declared. Under Ind AS, proposed dividend is recognized as a liability in the period in which it is declared by the company (usually when approved by shareholders in a general meeting) or paid. In the case of the Company, the declaration of dividend occurs after period end. Therefore, the liability for the year ended 31^st March 2016 recorded as proposed dividend as on 1^st April, 2016 along with dividend distribution tax amounting to Rs.199.67 lakhs has been de-recognised with a corresponding adjustment in the retained earnings.

8. Defined benefit obligation

Under Ind AS, remeasurements i.e. actuarial gains and losses are to be recognized in ''Other comprehensive income'' and are not to be reclassified to profit and loss in a subsequent period. Under the previous GAAP, these remeasurements were forming part of the profit or loss. Therefore, actuarial gain/loss amounting to Rs. (133.08) Lakhs for the financial year 2016-17 has been recognized in OCI (net of tax Rs.46.06 lakhs) which was earlier recognised as Employee benefits expense. However, the same has no impact on the total equity as at 31^st March, 2017.

9. Sale of goods

Under previous GAAP, sale of goods was presented as net of excise duty. However, under Ind AS, sale of goods included excise duty. Thus, sale of goods under Ind AS has increased by Rs.2601.68 lakhs with a corresponding increase in expenses during the financial year 2016-17.

10. Deferred tax

Under previous GAAP, deferred tax was recognized for the temporary timing differences which focus on differences between taxable profits and accounting profits for the period. Ind AS requires entities to account for deferred taxes using the balance sheet approach, which focuses on temporary differences between the carrying amount of an asset or liability in the balance sheet and its tax base. Further, the application of Ind AS has resulted in recognition of deferred tax on certain temporary differences which was not required under previous GAAP. Accordingly, deferred tax adjustments have been recognised in correlation to the underlying transactions in retained earnings/OCI in accordance with Ind AS. This has resulted in decrease in retained earnings of Rs.187.55 lakhs and Rs 120.31 lakhs as at 31^st March 2017 and 1st April 2016 respectively. The net profit has been decreased with Rs.67.24 lakhs for the year ended 31^st March 2017 with a corresponding adjustment in ''Deferred tax liability''.

11 Statement of cash flows

The transition from previous GAAP to Ind AS has not made any material impact on statement of cash flows.

*** As the liabilities for gratuity, compensated absences are provided on an actuarial basis for the Company as a whole, the amount pertaining to key managerial personnel has not been included.

Mr. Rajneesh Oswal, Mr Vishal Oswal and Mr Kunal Oswal are related to each other.

The related party relationship is as identified by the Company and relied upon by the auditors.

13. Financial instruments and Risk management i Capital management

The capital structure of the Company consists of net debt (borrowings offset by cash and bank balances) and total equity of the Company. The Company manages its capital to ensure that the Company will be able to continue as going concern while maximising the return to stakeholders through an optimum mix of debt and equity within the overall capital structure. The Company''s management reviews it''s capital structure considering the cost of capital, the risks associated with each class of capital and the need to maintain adequate liquidity to meet its financial obligations when they become due. Accordingly the management and the Board of Directors periodically review and set prudent limit on overall borrowing limits of the Company.

iii. Financial risk management

The Company is exposed to market risk, credit risk and liquidity risk. The Company''s senior management oversees the management of these risks and that advises on financial risks and the appropriate financial risk governance framework for the Company.

This note explains the risks which the company is exposed to and policies and framework adopted by the company to manage these risks:-

(A) Market risk management

a.1 Foreign currency risk management

The Company is exposed to foreign currency risk arising mainly on import (of raw materials and capital items) and export (of finished goods). Foreign currency exposures are managed within approved policy parameters utilising forward contracts.

b) Interest rate risk management

As the Company has no significant interest-bearing assets, the income and operating cash flows are substantially independent 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, which are included in interest bearing loans and borrowings in these financial statements. The company''s fixed rate borrowings are carried at amortised cost. They are, therefore, not subject to interest rate risk, since neither the carrying amount nor the future cash flows will fluctuate because of a change in market interest rates.

Cash flow sensitivity analysis for variable rate instruments

The following table demonstrates the sensitivity to a reasonably possible change in interest rates on that portion of loans and borrowings affected. A change of 100 basis points in interest rates for variable rate instruments at the reporting date would have increased/(decreased) profit or loss for the below years by the amounts shown below. With all other variables held constant, the Company''s profit before tax is affected through the impact on floating rate borrowings, as follows:

c) Other Price Risk

The company is exposed to price risk arising from equity investments. The company manages equity price risk by investing in fixed deposits/Fixed Maturity Plan, debt instruments and Liquid funds. The company does not actively trade equity investments. Equity investments are mainly held for strategic rather than trading purposes. Protection principle is given high priority by limiting company''s investments top rated money market instruments only.

The Company manages the surplus funds majorly through investments in debt based mutual fund schemes. The price of investment in these mutual fund Net Asset Value (NAV) declared by the Asset Management Company on daily basis as reflected by the movement in the NAV of invested schemes. The Company is exposed to price risk on such Investment schemes.

c.1 Equity price sensitivity analysis

The sensitivity analysis below has been determined based on the exposure to equity price risks at the end of the reporting period.

The Company''s exposure in Equity Investments is not material.

c.2 Mutual fund price sensitivity analysis

The sensitivity analysis below has been determined based on Mutual Fund Investment at the end of the reporting period. If NAV had been 1% higher/lower, the profit for year ended 31st March, 2018 would have increased/decreased by Rs /- 40.37 Lakhs (20162017: increase/decrease by Rs 37.64 lakhs) as a result of the changes in fair value of mutual funds.

(B) Credit risk management

Credit risk arises from the possibility that a counter party''s inability to settle its obligations as agreed in full and in time. The maximum exposure to credit risk in respect of the financial assets at the reporting date is the carrying value of such assets recorded in the financial statements net of any allowance for losses

a. Trade Receivables

The Company''s trade receivables consists of a large and diverse base customers including State owned Enterprises. Hence the Company is not exposed to concentration and credit risk. The company also assesses the credit worthiness of the customers internally to whom goods are sold on credit terms in the normal course of business. Outstanding customer receivables are regularly monitored and any shipments to overseas customers are generally covered by letters of credit.

The following is the detail of allowance for lifetime expected credit loss and revenues generated from top five customers of the company.

Trade Receivables

Out of the Trade receivables, Rs.2263.64 lakhs as at 31st March 2018 (Rs.1119.97 lakhs as at 31st March 2017 , Rs.1678.72 lakhs as at 01st April 2016 ) is due from the Company''s major customers i.e. having more than 5% of total outstanding trade receivables. There are no other customers who represent more than 5% of the total balance of trade receivables.

b. Other Financial Assets

Write off policy

The financials assets are written off in case there is no reasonable expectation of recovering from the financial asset.

The Company has access to various fund / non-fund based bank financing facilities. The amount of unused borrowing facilities (fund and non-fund based) available for future operating activities and to settle commitments as at 31st March, 2018 Rs.2827.80 lakhs, (as at 31st March, 2017 Rs.3660.67 lakhs, as at 1st April, 2016 Rs.2501.02 lakhs).

14 Figures in bracket indicate deductions.

15 Previous year figures have been regrouped/recasted/rearranged wherever necessary to confirm to its classification of the current year.

Mar 31, 2016

1. Terms/ rights attached to equity shares

The company presently has one class of equity shares having par value of F 10/- each. Each holder of equity shares is entitled to one vote per share. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting and entitlement to dividend to an equity shareholder shall arise after such approval.

In the event of liquidation of the company, the holders of equity shares will be entitled to receive any part of the 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 shareholder.

The rate of dividend on preference shares will be decided by the Board of directors as and when issued. Preferential shares as and when issued shall have the cumulative right to receive dividend as and when declared and shall have preferential right of repayment of amount of capital.

The Board has recommended a Dividend of 12% (Previous year 12 %) (F 1.20 per equity share of F 10/-) for the financial year ended March 31, 2016 subject to the approval of the Shareholders in the ensuing Annual General Meeting. The aggregate amount of Proposed dividend is F 165.89 Lac and F 33.77 Lac towards Tax on dividend distribution.

2. Detail of Shares held by holding company/ ultimate holding company their subsidiaries and associates

There is no holding /ultimate holding company of the company and therefore no subsidiary/associate of holding / ultimate holding company.

3. Details of security of loans repayable on demand (secured)

4. Secured loans repayable on demand from banks for working capital (Rs. 1645.09 lac, previous year Rs. 2142.10 lac ) are secured by hypothecation of stocks of raw materials, finished goods, bills receivables, book debts and all other movable assets of the company and further secured by way of second charge on the immovable assets situated at village Banah and at Ahmedgarh and also personally guaranteed by the two promoter directors of the company.

5. Secured loans repayable on demand from banks against overdraft limit (Rs. 273.29 lac, previous year F 395.37 lac) are secured by lien on current investments.

6.Terms of repayment of short term borrowings

7. Working capital borrowings from banks are repayable on demand and carry interest up to 2.50% over base rate (Previous year 2.80% over base rate).

8. Unsecured loans from related parties repayable within one year carry interest up to 11% p.a (Previous year up to 11% p.a).

9. Unsecured loans from public repayable within one year carry interest up to 11% p.a (Previous year up to 11% p.a).

10. 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 employment market.

11. The financial assumptions considered for the calculations are as under:-

Discount Rate: The discount rate has been chosen by reference to market yield on government bonds as on date of valuation.

Expected Rate of Return: In case of gratuity, the actual return has been taken.

Salary Increase: On the basis of past data provided by the company.

12. Short term employeeâs benefits:

13. The plan assets are maintained with Life Insurance Corporation of India (LIC). The detail of investments maintained by LIC have not been furnished to the Company. The same have therefore not been disclosed.

14. The Company has contributed Rs. 3.00 lac (previous year Rs. 4.50 lac) towards CSR activities to Shri Darshan Kumar Oswal Public Charitable Trust and Rs. 1.50 lac to Shri Parasnath Charitable Trust in which Directors and Relatives of Directors are Managing Trustees.

15. The related party relationship is as identified by the Company and relied upon by the auditors.

16. Corporate Social Responsibility

In accordance with the provisions of Section 135 of the Companies Act 2013, the Company has contributed a sum of rs. 35.72 lac (previous year Rs. 20.03 lac ) towards approved CSR activities. The said amount stands debited under the head âCSR Activitiesâ under the head âOther Expensesâ

17. The figures in brackets represent deductions.

18. The information required by the paragraph 5 of general instructions for preparation of the Statement of Profit and Loss as per Schedule III of the Companies Act, 2013 :

19. Previous yearâs figures have been regrouped/restated wherever necessary to confirm to its classification of the current year.

Mar 31, 2014

1 : Corporate Information

Shreyans Industries Limited (the Company) is a public company incorporated under the provisions of the Companies Act, 1956 on 11th June, 1979. The name of the company at its incorporation was Shreyans Paper Mills Ltd. & subsequently changed to Shreyans Industries Limited on 20th October 1992. The company is engaged in manufacturing of Writing & Printing Paper.

2 Contingent liabilities and provisions ( to the extent not provided for )

Contingent Liabilities (RS In lac)

As at As at March 31, 2014 March 31, 2013

Claims against Company not acknowledged as debt. 1052.25 1052.25

Bank Guarantees and Letters of credit outstanding 2166.20 1093.94

II Commitments

Estimated amount of contracts remaining to be executed on capital account and not provided for ( net of advances ) Rs. 806.72 lacs (Previous yearRs. 147.84 lacs)

3 a) The company has contested the additional demand in respect of excise duty amounting to Rs. 1107.96 lacs (Previous year Rs. 1119.12 lacs). As against this, a sum of Rs. 92.51 lacs (Previous year Rs. 93.76 lacs) is deposited under protest and has been included under Note No. 15 ''Long Term Loans and Advances''. The company has filed an appeal/petition with the appellate authorities and is advised that the demands are not in accordance with the law. Pending decision thereof, no provision has been made in books of account.

b) The company has contested the additional demand in respect of Income Tax amounting to f 6.53 lacs (Previous year Rs. 6.53 lacs). Pending appeal with appellate authorities, no provision has been made in the books of account as the company is hopeful to get the desired relief in appeal. As against this a sum of f 2.00 lacs (Previous year f 2.00 lacs) is deposited under protest

4 The company is a single segment company engaged in manufacture of Writing and Printing Paper. Accordingly the disclosure requirement as contained in the Accounting Standard AS - (17) on "Segment ReportingÂ prescribed by the Companies (Accounting Standards) Rules 2006 are not applicable.

5 The amount ofRs. 1766.89 lacs (Previous yearRs. 1624.06 lacs) being the excise duty deducted from the sales is relatable to the sales made during the year. Difference of increase / (decrease) of excise duty on inventory amounting to Rs. (1.52) lacs (Previous year Rs. (0.07) lacs) recognised in statement of profit and loss and shown under Miscellaneous expenses in Note No. 29 other expenses is relatable to difference between closing inventory and opening inventory.

6 In accordance with the Accounting Standard 28 on "Impairment of AssetsÂ the company has assessed on the balance sheet date whether there are any indications (as listed in paragraph 8 to 10 of the Standard ) with regard to the impairment of any of the assets. Based on such assessment, it has been ascertained that no potential loss is present and therefore formal estimate of recoverable amount has not been made. Accordingly no impairment loss has been provided in the books of account.

7 The details of amounts outstanding to Micro, Small and Medium Enterprises under the Micro, Small and Medium Enterprises Development Act, 2006 (MSMED Act), based on the available information with the Company are as under :

8 Intangible assets comprises of software have been amortized @ 20% on straight line basis as the useful life thereof has been estimated to be not more than five years.

9 The company has leased facilities under non cancellable operating lease arrangements with a lease term of three years which are subject to renewal at mutual consent thereafter. The lease rent expenses recognised during the year amountsRs. 13.82 lac (previous year Rs.6.77 lac.)

The future minimum lease payment in respect of non cancellable operating lease as at 31st March, 2014 for each of the following periods,

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

(g) The financial assumptions considered for the calculations are as under:-

Discount Rate: The discount rate has been chosen by reference to market yield on government bonds as on date of valuation.

Expected Rate of Return: In case of gratuity, the actual return has been taken.

Salary Increase: On the basis of past data provided by the company

(i) The plan assets are maintained with Life Insurance Corporation of India (LIC). The detail of investments maintained by LIC have not been furnished to the Company. The same have therefore not been disclosed.

10 The related party disclosure as per Accounting Standard - 18 prescribed by the Companies(Accounting Standards) Rules 2006.

a) KEY MANAGEMENT PERSONNEL AND RELATIVES OF KEY MANAGEMENT PERSONNEL

Key Management Personnel : Sh Rajneesh Oswal, Sh. Vishal Oswal, Sh Anil Kumar, Sh Kunal Oswal

Relatives of Key Management Personnel

Mrs. N.K. Oswal, Mrs. Preeti Oswal, Mrs. Shika Oswal Mrs. Neera, Ms Namita, Ms Swati

b) ASSOCIATE

Adinath Textiles Limited

c) ENTERPRISES OVER WHICH KEY MANAGEMENT PERSONNEL AND RELATIVE OF SUCH PERSONNEL ARE ABLE TO EXERCISE SIGNIFICANT INFLUENCE OR CONTROL

Achin Investment & Mercantile Company Shreyans Financial and Capital Services Limited Punctual Dealers (P) Ltd.

Jagvallabh Parasnath Capital Investments Pvt Ltd Virat Investment & Mercantile Company Oasis Share Trading Pvt Ltd

Ojasvi Investment & Mercantile Company Lime Lite Consultants Private Limited Levina Investment & Mercantile Company Adeep Investment Company. Noble Share Trading Pvt Ltd Sulzer Investment Pvt Ltd

d) The following transaction were carried out with the related parties in the ordinary course of business.

11 The information required by the paragraph 5 of general instructions for preparation of the Statement of Profit and Loss as per Revised Schedule VI of the Companies Act, 1956

12 Previous year''s figures have been regrouped/restated wherever necessary to confirm to its classification of the current year.

Mar 31, 2013

1 : Contingent liabilities and provisions ( to the extent not provided for )

Contingent Liabilities

As at As at PARTICULARS 31 March 2013 31 March 2012 Rs.In lacs Rs.In lacs

(i) Claims against Company not acknowledged as debt. 1052.25 1052.25

(ii) Bank Guarantees and Letters of credit outstanding 1093.94 809.28

II Commitments

i) Estimated amount of contracts remaining to be executed on capital account and not provided for ( net of advances ) Rs. 147.84 lacs (Previous year Rs. 33.37 lacs)

ii) The company has executed bonds for an a ggregate amount of Rs. Nil (Previous Year Rs. 15.00 lacs) in favour of Pre sident of India under section 56(2) and 67 of the Cus t o m s Act, 1962 and Central Excise and Salt Act, 1944, for fulfillment of the obligation under the said Acts.

2 : a) The company has contested the additional demand in respect of excise duty amounting to Rs. 1119.12 lacs (Previous years Rs. 1119.12 lacs). As against this, a sum of Rs. 93.76 lacs (Previous year Rs. 61.90 lacs) is deposited under protest and has been included under the head Rs.Long Term Loans and Advances''. The company has filed an appeal/petition with the appellate authorities and is advised that the demands are not in accordance with the law. Pending decision thereof, no provision has been made in books of account.

b)The company has contested the additional demand in respect of Income Tax amounting to Rs. 6.53 lacs (Previous year 46.90 lacs). Pending appeal with appellate authorities, no provision has been made in the books of account as the company is hopeful to get the desired relief in appeal. As against this a sum of Rs. 2.00 lacs (Previous year Rs. 23.50 lacs) is deposited under protest

3 : The company is a single segment company engaged in manufacture of Writing and Printing Paper. Accordingly the disclosure requirement as contained in the Accounting Standard AS Â (17) on "Segment Reporting" prescribed by the Companies (Accounting Standards) Rules 2006 are not applicable.

4 : The amount of Rs. 1624.06 lacs (Previous year Rs. 1179.33 lacs) being the excise duty deducted from the sales is relatable to the sales made during the year. Difference of increase / (decrease) of excise duty on inventory amounting to Rs. (0.07) lacs ( Previous year Rs. (0.38) lacs) recognised in statement of profit and loss and shown under Miscellaneous expenses in note no. 28 other expenses is relatable to difference between closing inventory and opening inventory.

5 : In accordance with the Accounting Standard 28 on "Impairment of Assets" the company has assessed on the balance sheet date whether there are any indications (as listed in paragraph 8 to 10 of the Standard ) with regard to the impairment of any of the assets. Based on such assessment, it has been ascertained that no potential loss is present and therefore formal estimate of recoverable amount has not been made. Accordingly no impairment loss has been provided in the books of account.

6 : Intangible assets comprises of software have been amortized @ 20% on straight line basis as the useful life thereof has been estimated to be not more than five years.

7 : a) The Company uses forward contracts to hedge its risk associated with fluctuation in foreign currency relating to foreign currency assets and liabilities. The use of the aforsaid financial instruments is governed by the Company''s overall strategy. The Company does not use forward contracts for speculative purposes. The details of the outstanding forward contracts as at 31 March 2013 are as under :

8 : The company has leased facilities under non cancellable operating lease arrangements with a lease term of three years which are subject to renewal at mutual consent thereafter. The lease rent expenses recognised during the year amounts Rs. 6.77 lac (previous year Rs.6.55 lac.)

The future minimum lease payment in respect of non cancellable operating lease as at 31st March, 2013 for each of the following periods,

9 : Employee Benefits

The summarized position of post-employment benefits and long term employee benefits recognized in the statement of profit and loss and Balance Sheet in accordance with AS[15] is as under:-

10 : The related party disclosure as per Accounting Standard Â 18 prescribed by the Companies(Accounting Standards) Rules 2006.

a) KEY MANAGEMENT PERSONNEL AND RELATIVES OF KEY MANAGEMENT PERSONNEL

Key Management Personnel : Sh Rajneesh Oswal, Sh. Vishal Oswal, Sh Anil Kumar, Sh Kunal Oswal

Relatives of Key Management

Personnel: Mrs. N.K. Oswal, Mrs. Preeti Oswal, Mrs. Shika Oswal

Mrs. Neera, Ms Namita, Ms Swati

b) ASSOCIATE Adinath Textiles Limited

c) ENTERPRISES OVER WHICH KEY MANAGEMENT PERSONNEL AND RELATIVE OF SUCH PERSONNEL ARE ABLE TO EXCERCISE SIGNIFICANT INFLUENCE OR CONTROL

Achin Investment & Mercantile Company Ojasvi Investment & Mercantile Company Shreyans Financial and Capital Services Limited Lime Lite Consultants Private Limited Punctual Dealers (P) Ltd.

Levina Investment & Mercantile Company

Jagvallabh Parasnath Capital Investments Private Limited Adeep Investment Company. Virat Investment & Mercantile Company No transaction carried out during the year with the enterprises stated above.

11: The figures in brackets represent deductions.

12 : The information required by the paragraph 5 of general instructions for preparation of the Statement of Profit and Loss as per Revised Schedule VI of the Companies Act, 1956

Mar 31, 2012

A Terms/ rights attached to equity shares

The company presently has one class of equity shares having par value of Rs.10/- each. Each holder of equity shares is entitled to one vote per share. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting and then equity shareholder is entitled to the dividend.

In the event of liquidation of the company, the holders of equity shares will be entitled to receive any of the 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 shareholder.

The rate of dividend on preferential shares is decided by the Board of directors as and when issued. Preferential shares as and when issued shall have the cumulative right to receive dividend as and when declared and shall have preferntial right of repayment of amount of capital.

The company has not declared dividend during the year ended March 31, 2012.

b) Detail of Shares held by holding company, the ultimate holding company their subsidiaries and associates

There is no holding /ultimate holding company of the company and therefore no subsidiary/associate of holding / ultimate holding Company.

a) Details of security for term loans

i) Term loans from banks and financial institutions are secured by a joint equitable mortgage created or to be created on immovable properties both present and future, situated at Ahmedgarh and Banah in the state of Punjab and hypothecation of whole of movable plant and machinery, machinery spares, tools and accessories and other movable, both present and future ( save and except book debts ) subject to the charge created or to be created by the company in favour of its bankers for its working capital loans. Term loans from banks and financial institutions are also personally guaranteed by promoter directors of the company.

ii) Term loans from others are secured by way of hypothecation of vehicles purchased out of such loans

b) Terms of repayment of term loans from banks

i) Term loan from iDbI Bank Limited amounting to Rs.89.04 lacs (including current maturities of long term debt) carries interest @ 12.25%. The loan is repayable in 3 quarterly instalments of Rs. 29.68 lacs each.

ii) Term loan from ICICI Bank Limited amounting to Rs.218.10 lacs (including current maturities of long term debt) carries interest @ 12.25%. The loan is repayable in 3 quarterly instalments of Rs. 72.70 lacs each.

iii) Term loan from State Bank of Patiala amounting to Rs.81.70 lacs (including current maturities of long term debt) carries interest @ 14.00%. The loan is repayable in 2 quarterly instalments of Rs. 50.00 lac and Rs. 31.70 lacs.

iv) Term loan from State Bank of Patiala amounting to Rs.600.00 lacs (including current maturities of long term debt) carries interest @ 13.25%. The loan is repayable in 8 quarterly instalments of Rs. 75.00 lacs each.

v) Term loan from State Bank of Patiala amounting to Rs.1400.00 lacs (including current maturities of long term debt) carries interest @ 14.00%. The loan is repayable in 20 quarterly instalments of Rs. 70.00 lacs each.

vi) Vehicle loan from ICICI Bank Limited amounting to Rs.2.61 lacs (including current maturities of long term debt) carries interest @ 9.26%. The loan is repayable in 20 monthly instalments (including interest) of Rs. 14150/- each .

vii) Vehicle loan from ICICI Bank Limited amounting to Rs.7.56 lacs (including current maturities of long term debt) carries interest @ 11.19%. The loan is repayable in 59 monthly instalments (including interest) of Rs. 16725/- each.

viii) Vehicle loan from ICICI Bank Limited amounting to Rs.15.48 lacs (including current maturities of long term debt) carries interest @ 10.57%. The loan is repayable in 35 monthly instalments (including interest) of Rs. 51600/- each .

ix) Vehicle loan from HDFC Bank Limited amounting to Rs.1.95 lacs (including current maturities of long term debt) carries interest @ 11.00%. The loan is repayable in 20 monthly instalments (including interest) of Rs. 10705/- each .

x) Vehicle loan from HDFC Bank Limited amounting to Rs. 2.76 lacs (including current maturities of long term debt) carries interest @ 11.10%. The loan is repayable in 24 monthly instalments (including interest) of Rs. 12880/- each .

xi) Vehicle loan from HDFC Bank Limited amounting to Rs.2.99 lacs (including current maturities of long term debt) carries interest @ 11.25%. The loan is repayable in 26 monthly instalments (including interest) of Rs. 13020/- each .

xii) Vehicle loan from HDFC Bank Limited amounting to Rs.9.05 lacs (including current maturities of long term debt) carries interest @ 10.73%. The loan is repayable in 29 monthly instalments (including interest) of Rs. 35550/- each .

xiii) Vehicle loan from HDFC Bank Limited amounting to Rs.1.33 lacs (including current maturities of long term debt) carries interest @ 9.25%. The loan is repayable in 11 monthly instalments (including interest) of Rs. 12650/- each .

c) Terms of repayment of term loans from financial institutions

i) Term loan from LIC of India amounting to Rs.13.80 lacs (including current maturities of long term debt) carries interest @ 12.25%. The loan is repayable in 3 quarterly instalments of Rs. 4.60 lacs each.

i i) Term loan from LIC of India amounting to Rs.4.14 lacs (including current maturities of long term debt) carries interest @ 0%. The loan is repayable in 3 quarterly instalments of Rs. 1.38 lacs each.

d) Terms of repayment of term loans from others

i) Vehicle loan from Kotak Mohindra Prime Limited amounting to Rs.1.84 lacs (including current maturities of long term debt) carries interest @ 9.70%. The loan is repayable in 8 monthly instalments (including interest) of Rs. 23827/- each .

ii) Vehicle loan from TATA Capital Serivce Limited amounting to Rs. 9.94 lacs (including current maturities of long term debt) carries interest @ 9.95%. The loan is repayable in 22 monthly instalments (including interest) of Rs. 49950/- each

Details of security of loans repayable on demand (secured)

*Secured loans repayable on demand from banks are secured by hypothecation of stocks of raw materials,finished goods, bills receivables, book debts and all other movable assets of the company and further secured by way of second charge on the immovable assets situated at village Banah and at Ahmedgarh and also personally guaranteed by the two promotor directors of the company.

** Unsecured loan repayable on demand are secured by the personal security of a promoter director of the company and carries interest @ 14.75%

Terms of repayment of short term borrowings

i) Working capital borrowings from banks are repayable on demand and carries interest @ 3% over base rate

ii) Unsecured loans from related parties repayable within one year carries interest @ 0 to 11%.

iii) Unsecured loans from public repayable within one year carries interest @ 0 to 11%

Notes

1 'Includes Rs 35.09 lacs being the cost of land exchanged with the forest department land for providing an open drain for carrying effulent

2 ** Represents proportionate premium for acquisition of lease hold land being amortised over the period of lease.

3 Subsidy amounting to Rs. Nil (previous year Rs. 23.30 lacs) related to fixed assets is deducted from the gross value of the asset concerned

4. Intangible assets are not internally generated.

Note 1 : Contingent liabilities and provisions (to the extent not provided for)

I Contingent Liabilities

Particulars As at As at 31 March 2012 31 March 2011

(i) Monies for which company is liable for payment 1052.25 34.83

(ii) Bank Guarantees and Letters of credit outstanding 809.28 837.43

(iii) Ohers - -

II Commitments

I)Estimated amount of contracts remaini n g to be executed on capital account and not provided for ( net of advances ) Rs. 33.37 lacs (Previous year Rs. 971.90 lacs)

II)The company has executed bonds for an aggregate amount of Rs. 15.00 lacs (Previous Year Rs. 14.00 lacs) in favour of President of India under section 56(2) and 67 of the Customs Act, 1962 and Central Excise and Salt Act, 1944, for fulfillment of the obligation under the said Acts

Note 2 : a) The company has contested the additional demand in respect of excise duty amounting to Rs. 1119.12 lacs (Previous years Rs. 998.61 lacs). As against this, a sum of Rs. 61.90 lacs (Previous year Rs. 61.90 lacs) is deposited under protest and has been included under the head 'Advances recoverable in cash or in kind'. The company has filed an appeal/petition with the appellate authorities and is advised that the demands are not in accordance with the law. Pending decision thereof, no provision has been made in books of account.

*b)The company has contested the additional demand in respect of Income Tax amounting to Rs. 46.90 lacs (Previous year 46.90 lacs). Pending appeal with appellate authorities, no provision has been made in the books of account as the company is hopeful to get the desired relief in appeal. As against this a sum of Rs. 23.50 lacs (Previous year Rs. 11.50 lacs) is deposited under protest.

Note 3 : The company is a single segment company engaged in manufacture of Writing and Printing Paper. Accordingly the disclosure requirement as contained in the Accounting Standard AS (17) on "Segment Reporting" prescribed by the Companies (Accounting Standards) Rules 2006 are not applicable.

Note 4: The amount of Rs. 1179.33 lacs (Previous year Rs. 837.58 lacs) being the excise duty deducted from the sales is relatable to the sales made during the year. Difference of increase / (decrease) of excise duty on inventory amounting to Rs. (0.38) lacs ( Previous year Rs. 7.00 lacs) recognised in statement of profit and loss and shown under Miscellaneous expenses in note no. 27 other expenses is relatable to difference between closing inventory and opening inventory Note 32 : Earning Per Share.

Note 5: In accordance with the Accounting Standard 28 "on Impairment of Assets" the company has assessed on the balance sheet date whether there are any indications (as listed in paragraph 8 to 10 of the Standard ) with regard to the impairment of any of the assets. Based on such assessment, it has been ascertained that no potential loss is present and therefore formal estimate of recoverable amount has not been made. Accordingly no impairment loss has been provided in the books of account.

Note 6 : Intangible assets comprises of software have been amortized @ 20% on straight line basis as the useful life thereof has been estimated to be not more than five years.

Note 7 : The company has leased facilities under non cancellable operating lease arrangements with a lease term of three years which are subject to renewal at mutual consent thereafter. The lease rent expenses recognised during the year amounts Rs. 6.55 lac (previous year 6.55 lac.)

The future minimum lease payment in respect of non cancellable operating lease as at 31st March, 2012 for each of the following periods,

Note 8 : Rs. 45.29 lacs (previous year Rs. Nil lacs) being amount of borrowing cost capitalized during the year.

Note 9 : Employee Benefits

The summarized position of post-employment benefits and long term employee benefits recognized in the profit and loss account and Balance Sheet in accordance with AS[15] is as under:-

(i) No allowance for doubtful debts is required to be made for the year in respect of debt due from related parties.

(ii) The related party relationship is as identified by the Company and relied upon by the auditors

Note 10 : The financial statements for the year ended 31st March , 2012 has been prepared as per Revised Schedule VI to the Companies Act, 1956. Accordingly the previous year figures have been reclassified to confirm to this year's classification.

Note 11 : The figures in brackets represent deductions.

Note 12 : The information required by the paragraph 5 of general instructions for preparation of the Statement of Profit and Loss as per Revised Schedule VI of the Companies Act, 1956

Mar 31, 2011

1. The company has contested the additional demand in respect of excise duty amounting to Rs. 998.61 lacs (Previous years Rs. 1049.05 lacs).As against this, a sum of Rs. 61.90 lacs (Previous year Rs. 121.93 lacs) is deposited under protest and has been included under the head `Advances recoverable in cash or in kind'. The company has filed an appeal/petition with the appellate authorities and is advised that the demands are not in accordance with the law. Pending decision thereof, no provision has been made in books of account.

2. Fixed deposits of Rs. 162.40 Lacs (Previous Year Rs. 97.95 lacs) are pledged with various departments as securities against the performance of contracts, letter of credits and bank guarantees issued by Bank.

3. The company is a single segment company engaged in manufacture of Writing and Printing Paper. Accordingly the disclosure requirement as contained in the Accounting Standard AS (17) on "Segment Reporting" prescribed by the Companies (Accounting Standards) Rules 2006 are not applicable.

4. The company has contested the additional demand in respect of Income Tax amounting to Rs. 46.90 lacs (Previous year Nil). Pending appeal with appellate authorities, no provision has been made in the books of account as the company is hopeful to get the desired relief in appeal.

5. The company has executed bonds for an aggregate amount of Rs. 14.00 lac (Previous Year Rs. Nil lac) in favour of President of India under section 56(2) and 67 of the Customs Act, 1962 and Central Excise and Salt Act, 1944, for fulfillment of the obligation under the said Acts.

6. The amount of Rs. 837.58 lacs (Previous year Rs. 682.55 lacs) being the excise duty deducted from the turnover is relatable to the turnover made during the year. Difference of excise duty amounting to Rs. 7.00 lacs ( Previous year Rs. 5.23 lacs) recognised in profit and loss account and shown under the schedule of manufacturing expenses is relatable to difference between closing stock and opening stock.

7. In accordance with the Accounting Standard 28 "on Impairment of Assets" the company has assessed on the balance sheet date whether there are any indications (as listed in paragraph 8 to 10 of the Standard) with regard to the impairment of any of the assets. Based on such assessment, it has been ascertained that no potential loss is present and therefore formal estimate of recoverable amount has not been made. Accordingly no impairment loss has been provided in the books of account.

8. (a)The Company has identified Micro, Small and Medium Enterprises on the basis of information made available. There are no dues to Micro, Small and Medium Enterprises, that are reportable under the Micro, Small and Medium Enterprises Development Act 2006.

9. Intangible assets comprises of software have been amortized @20% on straight line basis as the useful life thereof has been estimated to be not more than five years.

10. The company has leased facilities under non cancellable operating lease arrangements with a lease term of three years which are subject to renewal at mutual consent thereafter. The lease rent expenses recognised during the year amounts Rs. 6.55 lac (previous year 4.10 lac.)

11. Employees Benefits

(f) 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 employment market.

(g)The financial assumptions considered for the calculations are as under:-

Discount Rate: The discount rate has been chosen by reference to market yield on government bonds as on date of valuation.

Expected Rate of Return: In case of gratuity, the actual return has been taken.

Salary Increase: On the basis of past data provided by the company.

12. The related party disclosureas per Accounting Standard 18 prescribed by the Companies (Accounting Standards) Rules 2006.

a) KEY MANAGEMENT PERSONNEL AND RELATIVES OF KEY MANAGEMENT PERSONNEL

Key Management Personnel : Sh Rajneesh Oswal, Sh. Vishal Oswal, Sh Anil Kumar, Sh Kunal Oswal

Relatives of Key Management Personnel : Mrs. N.K. Oswal, Mrs. Preeti Oswal, Mrs. Shika Oswal Mrs. Neera, Ms Namita, Ms Swati

b) ASSOCIATE Adinath Textiles Limited

c) ENTERPRISES OVER WHICH KEY MANAGEMENT PERSONNEL AND RELATIVE OF SUCH PERSONNEL ARE ABLE TO EXCERCISE SIGNIFICANT INFLUENCE OR CONTROL

Achin Investment & Mercantile Company

Ojasvi Investment & Mercantile Company

Shreyans Financial and Capital Services Limited

Lime Lite Consultants Private Limited

Punctual Dealers (P) Ltd.

Levina Investment & Mercantile Company

Jagvallabh Parasnath Capital Investments Private Limited

Adeep Investment Company.

Virat Investment & Mercantile Company

No transaction carried out during the year with the enterprises stated above.

d) The following transaction were carried out with the related parties in the ordinary course of business.

(i) No provision for doubtful debts is required to be made for the year in respect of debt due from related parties.

(ii) The related party relationship is as identified by the Company and relied upon by the auditors

13. Previous year's figures have been recast/regrouped wherever necessary, to make these comparable with current year

14. The figures have been rounded off to the nearest lac rupees

15. The figures in brackets represent deductions.

Mar 31, 2010

1. The company has contested the additional demand in respect of sales tax and excise duty amounting to Rs. 1049.05 lacs (Previous years Rs. 1092.89 lacs). As against this, a sum of Rs. 121.93 lacs (Previous year Rs. 162.68 lacs) is deposited under protest and has been included under the head Advances recoverable in cash or in kind The company has filed an appeal/petition with the appellate authorities and is advised that the demands are not in accordance with the law. Pending decision thereof, no provision has been made in books of account.

2. Fixed deposits of Rs. 97.95 Lacs (Previous Year Rs. 79.84 lacs) are pledged with various departments as securities against the performance of contracts, letter of credits and bank guarantees issued by Bank.

3. The company is a single segment company engaged in manufacture of Writing and Printing Paper. Accordingly the disclosure requirement as contained in the Accounting Standard AS (17) on "Segment Reporting" prescribed by the Companies (Accounting Standards) Rules 2006 are not applicable.

4. The amount of Rs. 682.55 lacs (Previous year Rs. 1111.08 lacs) being the excise duty deducted fromthe turnover is relatable to the turnover made during the year. Difference of excise duty amounting to Rs. 5.23 lacs ( Previous year Rs. 0 65 lacs) recognised in profit and loss account and shown under the schedule of manufacturing expenses is relatable to difference between closing stock and opening stock.

5. In accordance with the Accounting Standard 28 "on Impairment of Assets" the company has assessed on the balance sheet date whether the re are any indications (as listed in paragraph 8 to 10 of the Standard) with regard to the impairment of any of the assets. Based on such assessment, it has been ascertained that no potential loss is present and therefore formal estimate of recoverable a mount ha snot been made. Accordingly no impairment loss has been provided in the books of account.

6. The detail of deferred tax liability as on 31st March, 2010.

7. The tax paid under section 115 JB (MAT) of Income Tax Act, 1961 has been treated as an asset in accordance with the provisions of the guidance note on accounting for credit available in respect of Minimum Alternate Tax under the Income Tax Act, 1961.

8. The Company has identified Micro, Small and Medium Enterprises on the basis of information made available There are no dues to Micro, Small and Medium Enterprises, that are reportable under the Micro. Small and Medium Enterprises Development Act 2006.

9. The estimated useful life of the intangible assets [Software] had been estimated to be six years. It has now been decided to amortize such intangible assets over a period of five years so as to conform with the requirements of Accounting Standards [AS] 26 "Intangible Assets", Accordingly, the amount of amortization of intangible assets for the year is higher by Rs 2.44 lac.

10. The company has allotted 27,50,000/- equity shares of Rs. 10/- each at a premium of Rs. 22.50 per share on conversion of equivalent number of warrants issued on preferential basis. The company had utilized the proceeds received from this issue for the purpose these were raised.

11. Exchange difference arising on realization of export bills amounting to Rs. 4.58 lac (Previous Year Rs. 9.32 lac)

12. Detail of foreign currency exposure that has not been hedged by a derivative instrument or otherwise is given below.

Currentyear Previous year

Against Debtors (US Dollars) 1,29,603.54 Nil

Against Loan (US Dollars) 4,50,000.00 7,50,000.00

13. The company has leased facilities under ndn cancellable operating lease arrangements with a lease term of three years which are subject to renewal at mutual consent thereafter. The lease rent expenses recognised during the year amounts Rs. 4,10 lac. The future minimum lease payment in respect of non cancellable operating lease as at 31 March, 2010 for each of the following periods,

(Rs. In lac) i) Not Laterthan one year 6.55

ii) Laterthanoneyearbutnotlaterthanthreeyear 11.96

iii) Laterthanthreeyear Nil

14. Employee Benefits

The summarized position of post-employment benefits and long term employee benefits recognized in the profit and loss account and Balance Sheet in accordance with AS[15] is as under:-

(f)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 employment market

(g) The financial assumptions considered for the calculations are as under:-

Discount Rate: The discount rate has been chosen by reference to market yield on government bonds as on date of valuation Expected Rate of Return: In case of gratuity, the actual return has been taken Salary Increase: On the basis of past data provided by the company.

(h) Short term employees benefits:

Current year Previous year (Rs in lacs (Rs in lacs)

Short term leave encashment liability as on 31.03.2010 69.76 55.84

Contribution to Provident Fund 126.19 112 15

15. The related party disclosure as per Accounting Standard-18 prescribed by the Companies (Accounting Standards) Rules 2006

a) KEYMANAGEMENT PERSONNEL AND RELATIVES OF KEY MANAGEMENT PERSONNEL

Key Management Personnel : Sh Rajneesh Oswal, Sh. Vishal Oswal, Sh Anil Kumar. Sh Kunal Oswal

Relatives of Key Management

Personnel: Mrs. N.K. Oswal, Mrs. Preeti Oswal, Mrs. Shika Oswal

Mrs. Neera, Ms Namita, Ms Swati

b) ASSOCIATE Adinath Textiles Limited

c) ENTERPRISES OVER WHICH KEY MANAGEMENT PERSONNEL AND RELATIVE OF SUCH PERSONNEL ARE ABLE

EXCERCISE SIGNIFICANT INFLUENCE OR CONTROL

Achin Investment & Mercantile Company

jasvi Investment S Mercantile Company

Shreyaris Financial and Capital Services Limited

Lime Lite Consultants Private Limited

Punctual Dealers (P) Ltd.

Levina Investment & Mercantile Company

Jagvallabh Parasnath Capital Investments Private Limited

Adeep Investment Company.

Virat Investment & Mercantile Company

No transaction carried out during the year with the enterprises stated above.

(i) No provision for doubtful debts is required to be made for the year in respect of debt due from related parties. (ii) The related party relationship is as identified by the Company and relied upon by the auditors

17. Previous years figures have been wherever necessary, to make these comparable with current year

18. The figures have been rounded off to the nearest lac rupees

23. The figures in brackets represent deductions.

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