Notes to Accounts of Simplex Papers Ltd.

Mar 31, 2025

(xii) Provisions and Contingent Liabilities:

The Company recognizes a provision when there is a present obligation (legal or constructive) as a result of
a past event and it is probable that an outflow of resources embodying economic benefits will be required to
settle the obligation and a reliable estimate can be made of the amount of the obligation.

Contingent liabilities are disclosed when there is a possible obligation arising from past events the existence
of which will be confirmed only by the occurrence or non-occurrence of one or more uncertain future events
not wholly within the control of the Company or a present obligation that arises from past events where it is
either not probable that an outflow of resources will be required to settle the obligation or a reliable estimate
of the amount cannot be made.

(xiii) Eamings Per Share:

Basic earnings per share is calculated by dividing the net profit / (loss) attributable to the equity shareholders
by weighted average number of equity shares outstanding during the year.

For the purpose of calculating diluted earnings per share, the net profit / (loss) for the period attributable to
equity shareholders and the weighted average number of shares outstanding during the period are adjusted
for the effects of all dilutive potential equity shares.

(xiv) Investments:

Long-term investments are valued at cost less provision for impairment in value of such investments.

1 (a) USE OF ESTIMATES AND JUDGEMENTS

The preparation of financial statements in conformity with Ind AS requires management to make judgments,
estimates and assumptions that affect the reported amounts of assets, liabilities, income, expenses and
disclosures of contingent liabilities at the reporting date. However, uncertainty about these assumptions and
estimates could result in outcomes that require a material adjustment to the carrying amount of the asset or
liability affected in future periods.

Estimates and underlying assumptions are reviewed at each reporting date. Any revision to accounting
estimates and assumptions are recognised prospectively i.e. recognised in the period in which the estimate
is revised and future periods affected.

‘Deferred tax asset has not been recognised in the books.

In assessing the realizability of deferred tax assets, the Company considers the extent to which it is probable that
the deferred tax asset will be realized. The ultimate realization of deferred tax asset is dependent upon the
generation of future taxable profits during the period in which those temporary differences and tax loss carry
forwards become deductible. The Company considers the expected reversal of deferred tax liabilities, projected
future taxable income in making this assessment.

The Company has not recognised deferred tax asset, considering that the Company had a history of tax losses for
recent years.

b. Terms/rights attached to the equity shares

The Company has one class of equity shares having a par value of '' 10/- per share till 22nd June 2023 and
''1,000/- per share after 22nd June 2023. Each holder of equity shares is entitled to one vote. In the event of
liquidation of the Company, the holders of the equity shares will be entitled to receive remaining assets of the
Company, after distribution of all preferential amounts, in proportion to their shareholding.

18. The Company has not received any intimation from “suppliers” regarding their status under the Micro, Small and
Medium Enterprises Development Act, 2006 and hence disclosures, if any, relating to amounts unpaid as at the
year end together with interest paid/payable as required under the said Act have not been given.

19. The net worth of the Company has been eroded due to continuous losses. The Company is in trading activity of
different type of paper products i.e. Paper board and Craft paper. The Management is evaluating other options,
hence, the accounts have been prepared on going concern basis.

20. As there are only two employees in the Company as at the balance sheet date and have not completed required
minimum period to become eligible for retirement benefits, accordingly, the provisions relating to Ind As 19
Employee Benefits, are not applicable.

21. Earnings per share (EPS) is calculated by dividing the profit/(loss) attributable to the equity share holders by
weighted average number of equity shares outstanding during the year.

For the purpose of calculating diluted earnings per share, the net profit or loss for the period attributable to equity
shareholders and the weighted average number of shares outstanding during the period is adjusted for the effects
of all dilutive potential equity shares, except when the results would be anti-dilutive.

b) Fair value hierarchy and method of valuation

The Company considers that the carrying value amount recognised in the financial statements approximate
their fair value largely due to the short term maturities of these instruments.

c) Risk management framework

The Company''s principal financial liabilities includes borrowings, trade and other payables. The Company''s
principal financial assets includes loans, cash and cash equivalents and others. The Company is exposed to
credit risk, liquidity risk and market risk. The Company’s senior management oversees the management of
these risks. The Company''s senior management provides assurance that the Company''s financial risk
activities are governed by appropriate policies and procedures and that financial risks are identifed, measured
and managed in accordance with the Company''s policies and risk objectives.

d) Financial Risk Management

The Company has exposure to the following risks arising from financial instruments:

i) Credit Risk

ii) Liquidity Risk

iii) Market Risk

i) Credit Risk

Credit risk is the risk of financial loss to the Company if a customer or counterparty to a financial
instrument fails to meet its contractual obligations and arises principally from the Company''s
receivables from customers, investment in inter corporate deposit and loans given to related parties.

The carrying amount of following financial assets represents the maximum credit exposure:

Trade receivables

The Company’s exposure to credit risk is influenced mainly by the individual characteristics of each
customer. Each outstanding customer receivables are regularly monitored and if outstanding is above
due date, the further sales are controlled and can only be released if there is a proper justification. No
impairment is observed in the carrying value of trade receivables.

Other financial assets

Credit risk from balances with banks and loans is managed by responsible and authorised person of
the Company. Investments of surplus funds are made only with approved counterparties.

ii) Liquidity Risk

Liquidity risk is the risk that the Company will encounter difficulty in meeting the obligations associated
with its financial liabilities that are settled by delivering cash or another financial asset. The Company’s
approach in managing liquidity is to ensure as far as possible that it will have sufficient liquidity to meet
its liabilities when they are due, under both normal and stressed condition, without incurring
unacceptable losses or risking damage to the Company’s reputation.

"The Management monitors rolling forecasts of the Company''s liquidity position on the basis of
expected cash flows. The Company’s objective is to maintain a balance between continuity of funding
and flexibility through the use of surplus funds and inter-corporate loans.

iii) Market Risk

Market risk is the risk that changes in market prices such as foreign exchange rates, interest rates and
commodity prices which will affect the Company’s income or the value of its holdings of financial
instruments. The objective of market risk management is to manage and control market exposures within
acceptable parameters, while optimising the return.

Currency risk

Currency risk is not material, as the Company''s primary business activities are within India and does not
have any exposure in foreign currency.

Interest rate risk

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate
because of changes in market interest rates. The Company''s exposure to risk of changes in market
interest rate is not material as the Company has taken loans from related parties and interest is not
provided on these loans, considering the financial position of the Company.

The Company does not account for any fixed rate financial assets and liabilities at fair value through profit
or loss. Therefore, a change in interest rate at the reporting date would not affect profit or loss.

Commodity price risk

Exposure to market risk with respect to commodity prices arises from the cost of procurement of traded
goods and this price may be influenced by factors such as demand, supply and production cost. The
Company does not buy any new material, if it can not be sold to the customers above the cost of
procurement.

25. CAPITAL MANAGEMENT

The capital structure of the Company consists of net debts and the total equity of the Company. For this
purpose, net debt is defined as total borrowings less cash and cash equivalents. The net worth of the
Company has been fully eroded.

The funding reqirements are met through short-term / long-term borrowings. The Company monitors the
capital structure on the basis of total debt to equity ratio and maturity profile of the overall debt portfolio of the
Company.

26. CORPORATE SOCIAL RESPONSIBILITY

During the year, the Company was not required to spend any money as per the provision of Section 135 of the
Companies Act, 2013 towards Corporate Social Responsibility (CSR) activities.

Gross amount required to be spent by the Company during the year '' Nil (previous year '' Nil )

27. ANALYTICAL RATIOS

The following are analytical ratios for the year ended 31st March, 2025 and 31st March, 2024

Inventory turnover ratio, trade receivables turnover ratio, trade payables turnover ratio, net capital turnover ratio,
net profit ratio and return on investment are not provided as there were no revenue, inventory, trade receivables,
trade payables and investments.

28. There are no transactions and balances with companies struck off under Section 248 of the Companies Act, 2013
or Section 560 of the erstwhile Companies Act, 1956.

29. The Financial Statements of the Company for the year ended 31st March, 2025 were approved by the Board of
Directors on 20th May, 2025.

30. Previous year’s figures have been reclassified, wherever necessary, to conform current year’s presentation.

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

For Khandelwal and Mehta LLP Dinesh Chandra Shrimali Sita Sunil

Chartered Accountants Chief Executive Officer and Director

(Firm’s Registration No.W100084) Chief Financial Officer DIN: 00041722

Sunil Khandelwal Bikash Singh Shekhar R Singh

Partner Company Secretary and Director

Membership No. 101388 Compliance Officer DIN: 03357281

Mumbai, 20th May, 2025 Mumbai, 20th May, 2025

---

Mar 31, 2024

(xii) Provisions and Contingent Liabilities:

The Company recognizes a provision when there is a present obligation (legal or constructive) as a
result of a past event and it is probable that an outflow of resources embodying economic benefits will
be required to settle the obligation and a reliable estimate can be made of the amount of the obligation.

Contingent liabilities are disclosed when there is a possible obligation arising from past events the
existence of which will be confirmed only by the occurrence or non-occurrence of one or more
uncertain future events not wholly within the control of the Company or a present obligation that arises
from past events where it is either not probable that an outflow of resources will be required to settle the
obligation or a reliable estimate of the amount cannot be made.

(xiii) Earnings Per Share:

Basic earnings per share is calculated by dividing the net profit / (loss) attributable to the equity
shareholders by weighted average number of equity shares outstanding during the year.

For the purpose of calculating diluted earnings per share, the net profit / (loss) for the period attributable
to equity shareholders and the weighted average number of shares outstanding during the period are
adjusted for the effects of all dilutive potential equity shares.

(xiv) Investments:

Long-term investments are valued at cost less provision for impairment in value of such investments.

1 (a) USE OF ESTIMATES AND JUDGEMENTS

The preparation of financial statements in conformity with Ind AS requires management to make judgments,
estimates and assumptions that affect the reported amounts of assets, liabilities, income, expenses and
disclosures of contingent liabilities at the reporting date. However, uncertainty about these assumptions and
estimates could result in outcomes that require a material adjustment to the carrying amount of the asset or
liability affected in future periods.

Estimates and underlying assumptions are reviewed at each reporting date. Any revision to accounting
estimates and assumptions are recognised prospectively i.e. recognised in the period in which the estimate is
revised and future periods affected.

17. The Company has not received any intimation from “suppliers” regarding their status under the Micro, Small and
Medium Enterprises Development Act, 2006 and hence disclosures, if any, relating to amounts unpaid as at the
year end together with interest paid/payable as required under the said Act have not been given.

18. The net worth of the Company has been eroded due to continuous losses. The Company is in trading activity of
different type of paper products i.e. Paper board and Craft paper. The Management is evaluating other options,
hence, the accounts have been prepared on going concern basis.

19. As there are only two employees in the Company as at the balance sheet date and have not completed required
minimum period to become eligible for retirement benefits, accordingly, the provisions relating to Ind As 19
Employee Benefits, are not applicable.

20. Earnings per share (EPS) is calculated by dividing the profit/(loss) attributable to the equity share holders by
weighted average number of equity shares outstanding during the year.

For the purpose of calculating diluted earnings per share, the net profit or loss for the period attributable to equity
shareholders and the weighted average number of shares outstanding during the period are adjusted for the
effects of all dilutive potential equity shares, except when the results would be anti-dilutive.

‘During the year, the effect of National Company Law Tribunal (NCLT) order for consolidation of equity shares of
face value from '' 10/- to '' 1,000/- per share has been given and the BSE Limited (i.e.stock exchange where the
Company''s shares are listed) has allowed trading of equity shares of the Company having face value of '' 1,000/-
each share w.e.f. 22nd June, 2023. As per the NCLT order, 75 equity shares of face value of '' 10/- have been
cancelled and the same has been adjusted in Capital Reserve. After consolidation, paid up equity share capital of
the Company is '' 300.14 lakhs having 30,014 equity shares of face value of ''1,000/- each.

The basic and diluted EPS for the prior year have been restated considering the face value of '' 1,000/- each in
accordance with Ind AS 33 - “Earnings per Share” on account of consolidation of the equity shares of face value
of '' 10/- each into equity shares of face value for '' 1,000/- each.

21. The Company’s activities are classified as belonging to a single business segment of trading in paper products.
The Company’s operations are largely limited to India.

b) Fair value hierarchy and method of valuation

The Company considers that the carrying value amount recognised in the financial statements approximate
their fair value largely due to the short term maturities of these instruments.

c) Risk management framework

The Company''s principal financial liabilities includes borrowings, trade and other payables. The Company''s
principal financial assets includes loans, cash and cash equivalents and others. The Company is exposed to
credit risk,liquidity risk and market risk. The Company’s senior management oversees the management of
these risks. The Company''s senior management provides assurance that the Company''s financial risk
activities are governed by appropriate policies and procedures and that financial risks are identifed, measured
and managed in accordance with the Company''s policies and risk objectives.

d) Financial Risk Management

The Company has exposure to the following risks arising from financial instruments:

i) Credit Risk

ii) Liquidity Risk

iii) Market Risk

i) Credit Risk

Credit risk is the risk of financial loss to the Company if a customer or counterparty to a financial
instrument fails to meet its contractual obligations and arises principally from the Company''s
receivables from customers, investment in inter corporate deposit and loans given to related parties.

The carrying amount of following financial assets represents the maximum credit exposure:

Trade receivables

The Company’s exposure to credit risk is influenced mainly by the individual characteristics of each
customer. Each outstanding customer receivables are regularly monitored and if outstanding is above
due date, the further sales are controlled and can only be released if there is a proper justification. No
impairment is observed in the carrying value of trade receivables.

Other financial assets

Credit risk from balances with banks and loans is managed by responsible and authorised person of
the Company. Investments of surplus funds are made only with approved counterparties.

ii) Liquidity Risk

Liquidity risk is the risk that the Company will encounter difficulty in meeting the obligations associated
with its financial liabilities that are settled by delivering cash or another financial asset. The Company’s
approach in managing liquidity is to ensure as far as possible that it will have sufficient liquidity to meet
its liabilities when they are due, under both normal and stressed condition, without incurring
unacceptable losses or risking damage to the Company’s reputation.

The Management monitors rolling forecasts of the Company''s liquidity position on the basis of
expected cash flows. The Company’s objective is to maintain a balance between continuity of funding
and flexibility through the use of surplus funds and inter-corporate loans.

iii) Market Risk

Market risk is the risk that changes in market prices such as foreign exchange rates, interest rates and
commodity prices which will affect the Company’s income or the value of its holdings of financial
instruments. The objective of market risk management is to manage and control market exposures within
acceptable parameters, while optimising the return.

Currency risk

Currency risk is not material, as the Company''s primary business activities are within India and does not
have any exposure in foreign currency.

Interest rate risk

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate
because of changes in market interest rates. The Company''s exposure to risk of changes in market
interest rate is not material as the Company has taken loans from related parties and interest is not
provided on these loans, considering the financial position of the Company.

The Company does not account for any fixed rate financial assets and liabilities at fair value through profit
or loss. Therefore, a change in interest rate at the reporting date would not affect profit or loss.

Commodity price risk

Exposure to market risk with respect to commodity prices arises from the cost of procurement of traded
goods and this price may be influenced by factors such as demand, supply and production cost. The
Company does not buy any new material, if it can not be sold to the customers above the cost of
procurement.

24. CAPITAL MANAGEMENT

The capital structure of the Company consists of net debts and the total equity of the Company. For this
purpose, net debt is defined as total borrowings less cash and cash equivalents. The net worth of the
Company has been fully eroded.

The funding requirements are met through short-term / long-term borrowings. The Company monitors the
capital structure on the basis of total debt to equity ratio and maturity profile of the overall debt portfolio of the
Company.

25. CORPORATE SOCIAL RESPONSIBILITY

During the year, the Company was not required to spend any money as per the provision of Section 135 of the
Companies Act, 2013 towards Corporate Social Responsibility (CSR) activities.

Gross amount required to be spent by the Company during the year '' Nil (previous year Nil )

Inventory turnover ratio, trade receivables turnover ratio, trade payables, turnover ratio, net capital turnover ratio,
net profit ratio and return on investment are not provided as there were no revenue, inventory, trade receivables,
trade payables and investments.

27. There are no transactions and balances with companies struck off under Section 248 of the Companies Act, 2013
or Section 560 of the erstwhile Companies Act, 1956.

28. The Financial Statements of the Company for the year ended 31st March, 2024 were approved by the Board of
Directors on 17th May, 2024.

29. Previous year’s figures have been reclassified, wherever necessary, to conform current year’s presentation.

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

For Khandelwal and Mehta LLP Dinesh Chandra Shrimali Sita Sunil

Chartered Accountants Chief Executive Officer and Director

(Firm’s Registration No.W100084) Chief Financial Officer DIN: 00041722

Sunil Khandelwal Bikash Singh Shekhar R Singh

Partner Company Secretary and Director

Membership No. 101388 Compliance Officer DIN: 03357281

Mumbai, 17th May, 2024 Mumbai, 17th May, 2024

---

Mar 31, 2015

1. Terms/rights attached to the equity shares

The Company has one class of equity shares having a par value of ' 10/- per share. Each holder of equity shares is entitled to one vote. In the event of liquidation of the Company, the holders of the equity shares will be entitled to receive remaining assets of the Company, after distribution of all preferential amounts, in proportion to their shareholding.

2. Contingent Liabilities :

Claims against the Company not (in Rs.) acknowledged as debt: 31 .03.2015 31.03.2014

(a) Appeals filed in respect of disputed demands

i) Central Excise 17,54,45,314 17,54,45,314

ii) Income Tax 1,59,280 1,59,280

(b) Other claims 87,82,210 36,46,561

3. During the year, the Company has disposed off its building and plant and machinery at Gondia, Maharashtra as the plant was closed for long and the equipments were of outdated technology and getting rusted because of not in use for long time. The Company has incurred a net loss of Rs. 6,70,30,887/- on sale of the said assets and reversed the provision for impairment loss of Rs. 7,50,42,152/- and disclosed the same as exceptional items. The Company is dealing in Paper and Paper products and management is further evaluating viable possibilities of other diversification in the same line of business and accordingly, the accounts have been prepared on going concern basis.

4. During the year, the Company has provided depreciation as per the provision of Schedule II to the Companies Act, 2013 ("the Act") based on the remaining useful life of the assets and consequently, in case of the assets which have completed their useful lives as prescribed under Schedule II to the Act, the carrying value (net of residual value) as at 01st April, 2014 have been adjusted net of tax, in the opening balance of Profit and Loss Account amounting to Rs. 6,98,57,391/- and in case of other assets, the carrying value (net of residual value) is being depreciated over the revised remaining useful lives. As a result of the above, depreciation for the current year is higher by Rs. 48,45,016/-.

5. The Company has not received any intimation from "suppliers" regarding their status under the Micro, Small and Medium Enterprises Development Act, 2006 and hence disclosures, if any, relating to amounts unpaid as at the year end together with interest paid/payable as required under the said Act have not been given.

6. During the year, the Company has trading activity in paper products i.e. Paper board and Craft paper.

7. The net worth of the Company has been eroded due to continuous losses.

8. As there are no employees in the Company, the provisions relating to Accounting Standard (AS-15) (Revised) Employee Benefits, are not applicable.

9. Earnings per share (EPS) is calculated by dividing the profit/(loss) attributable to the equity share holders by weighted average number of equity shares outstanding during the year.

For the purpose of calculating diluted earnings per share, the net profit or loss for the period attributable to equity shareholders and the weighted average number of shares outstanding during the period is adjusted for the effects of all dilutive potential equity shares, except when the results would be anti-dilutive.

10. The Company's activities are classified as belonging to a single business segment of trading in paper products. The Company's operations are largely limited to India.

11. The previous year's figures have been reclassified, wherever necessary, to conform current year's presentation.

---

Mar 31, 2014

CORPORATE INFORMATION

Simplex Papers Limited ("the Company") is in trading of different types of papers i.e. paper board, craft paper, etc. The Company is a Public Limited Company and is listed on BSE Limited.

1. SHARE CAPITAL

A. Terms/rights attached to the equity shares

The Company has one class of equity shares having a par value of Rs. 10/- per share. Each holder of equity shares is entitled to one vote. In the event of liquidation of the Company, the holders of the equity shares will be entitled to receive remaining assets of the Company, after distribution of all preferential amounts, in proportion to their shareholding.

2. Contingent Liabilities :

(in Rs.)

Claims against the Company not acknowledged as debt:

31.03.2014 31.03.2013

(a) Appeals filed in respect of disputed demand:

i) Central Excise 17,54,45,314 17,55,63,684

ii) Sales Tax - 2,54,78,954

iii) Income Tax 1,59,280 -

(b) Other claims 36,46,561 75,66,830

3. During the year, the Company has trading activity in paper products i.e. Paper board and Craft paper.

4. The Company has not received any intimation from "suppliers" regarding their status under the Micro, Small and Medium Enterprises Development Act, 2006 and hence disclosures, if any, relating to amounts unpaid as at the year end together with interest paid/payable as required under the said Act have not been given.

5. The net worth of the Company has been eroded due to continuous loss and impairment loss of fixed assets.

6. As there are no employees in the company, the provisions relating to Accounting Standard (AS-15) (Revised) Employee Benefits, are not applicable.

7. Earnings per share (EPS) is calculated by dividing the profit/(loss) attributable to the equity share holders by weighted average number of equity shares outstanding during the year.

For the purpose of calculating diluted earnings per share, the net profit or loss for the period attributable to equity shareholders and the weighted average number of shares outstanding during the period is adjusted for the effects of all dilutive potential equity shares, except when the results would be anti-dilutive.

8. The Company''s activities are classified as belonging to a single business segment of trading in paper products. The Company''s operations are largely limited to India.

9. The previous year''s figures have been reclassified, wherever necessary to conform current year''s presentation.

---

Mar 31, 2013

CORPORATE INFORMATION

Simplex Papers Limited (the Company) is in manufacturing and trading of different types of papers. The Company is a Public Limited Company and is listed on BSE Limited.

1. Contingent liabilities not provided for : (in Rs.)

Particulars 31.03.2013 31.03.2012

(a) Appeals filed in respect of disputed demand: s

i) Central Excise 17,55,63,684 17,55,63,684

ii) Sales Tax 2,54,78,954 2,54,78,954

(b) Other claims 75,66,830 1,24,58,953

2. During the year, the Company has trading activity in paper. There was no production during the year as the production is under suspension due to non-availability of required raw materials. The management is evaluating various alternative viz. different raw materials mix to start the production at the earliest.

3. The Company has not received any intimation from "suppliers" regarding their status under the Micro, Small and Medium Enterprises Development Act, 2006 and hence disclosures, if any, relating to amounts unpaid as at the year end together with interest paid/payable as required under the said Act have not been given.

4. The Company continues to carry the inventory of Plantations that have grown up and are in saleable condition (i.e. ready to sale). As on the balance sheet date, plantations have been recognized as stock in trade and valued at market price amounting to Rs.3,65,000/- (Previous year Rs.11,63,500/-).

5. The net worth of the Company has been eroded due to continuous loss and impairment loss of fixed assets.

6. As there are no employees in the company, the provisions relating to Accounting Standard (AS-15) (Revised) Employee Benefits, are not applicable.

7. Earnings per share (EPS) is calculated by dividing the profit / (loss) attributable to the equity share holders by weighted average number of equity shares outstanding during the year.

For the purpose of calculating diluted earnings per share, the net profit or loss for the period attributable to equity shareholders and the weighted average number of shares outstanding during the period is adjusted for the effects of all dilutive potential equity shares, except when the results would be anti-dilutive.

8. The Company''s activities are classified as belonging to a single business segment of manufacture and trading in Paper products. The Company''s operations are largely limited to India.

9. Previous Year Figures :

The financial statements for the year ended 31st March, 2013 are prepared as per Revised Schedule VI. The previous year figures have been reclassified to conform to this year''s classification, wherever necessary to conform current year''s presentation.

---

Mar 31, 2012

CORPORATE INFORMATION

Simplex Papers Limited ("The Company") is in manufacturing and trading of different types of papers. The Company is a Public Limited Company and is listed on BSE Limited.

a. Terms/rights attached to the equity shares

The Company has one class of equity shares having a par value of Rs 10/- per share. Each holder of equity shares is entitled to one vote. In the event of liquidation of the company, the holders of the equity shares will be entitled to receive remaining assets of the company, after distribution of all preferential amounts, in proportion to their shareholding.

1. During the year, the Company has trading activity in paper. There was no production during the year as the production is under suspension due to non-availability of required raw materials. The management is evaluating various alternative viz. different raw materials mix to start the production at the earliest.

2. The Company has not received any intimation from “suppliers” regarding their status under the Micro, Small and Medium Enterprises Development Act, 2006 and hence disclosures, if any, relating to amounts unpaid as at the year end together with interest paid/payable as required under the said Act have not been given.

3. The Company continues to carry the inventory of Plantations that have grown up and are in saleable condition (i.e. ready to sale). As on the balance sheet date, plantations have been recognized as stock in trade and valued at market price amounting to Rs 11,63,500/- (Previous year Rs 12,67,500/-).

4. The net worth of the Company has been eroded due to continuous loss and impairment loss of fixed assets.

5. As there are no employees in the company, the provisions relating to Accounting Standard (AS-15) (Revised) Employee Benefits, are not applicable.

6. Earnings per share (EPS) is calculated by dividing the profit attributable to the equity share holders by weighted average number of equity shares outstanding during the year.

For the purpose of calculating diluted earnings per share, the net profit or loss for the period attributable to equity shareholders and the weighted average number of shares outstanding during the period is adjusted for the effects of all dilutive potential equity shares, except when the results would be anti-dilutive.

7. The Company's activities are classified as belonging to a single business segment of manufacture and trading in Paper products. The Company's operations are largely limited to India.

8. Previous Year Figures

The financial statements for the year ended 31st March, 2011 had been prepared as per the then applicable, pre- revised Schedule VI to the Companies Act, 1956. Consequent to the notification of Revised Schedule VI under the Companies Act, 1956, the financial statements for the year ended 31st March, 2012 are prepared as per Revised Schedule VI. Accordingly, the previous year figures have also been reclassified to conform to this year's classification. The adoption of Revised Schedule VI for previous year figures does not impact recognition and measurement principles followed for preparation of financial statements.

---

Mar 31, 2011

1. Contingent liabilities not provided for:

Claims against the Company not acknowledged as debts Rs. 1,886.86 lacs (including Excise Rs. 1,754.45 lacs). (Previous year Rs. 1,873.62 lacs- including Excise Rs. 1,754.45 lacs).

2. The Company has not received any intimation from "suppliers" regarding their status under the Micro, Small and Medium Enterprises Development Act, 2006 and hence disclosures, if any, relating to amounts unpaid as at the year end together with interest paid/payable as required under the said Act have not been given.

3. During the year the Company has started trading activity in paper. There was no production during the year as the production is under suspension due to non availability of required raw materials. The management is evaluating various alternative viz. different raw materials mix to start the production at the earliest.

4. Company continues to carry the inventory of Plantations that have grown up and are in saleable condition (i.e. ready to sale) as on the balance sheet date have been recognized as stock in trade and valued at market price amounting to Rs. 12.68 lacs (Previous year Rs. 22.00 lacs).

5. The net worth of the Company has been eroded due to continuous loss and Impairment Loss of Fixed Assets.

6. As there are no employees in the company, the provisions relating to Accounting Standard (AS 15) (Revised) Employee Benefits are not applicable.

7. The Lease in respect of Leasehold Land at Gondia has expired. As per the terms of the agreement the lease is renewable and the company has made necessary application for renewal of lease with Government of Maharashtra.

8. The Company's activities are classified as belonging to a single business segment of manufacture and trading in Paper products. The Company's operations are largely limited to India.

9. Information required pursuant to Part - IV of Schedule VI to the Companies Act, 1956 is annexed hereto.

10. Previous Year's figures have been regrouped wherever necessary to conform to this year's presentation.

---

Mar 31, 2010

1. Contingent liabilities not provided for:

2. The Company has not received any intimation from "suppliersthregarding their status under the Micro, Small and Medium Enterprises Development Act, 2006 and hence disclosures, if any, relating to amounts unpaid as at the year end together with interest paid / payable as required under the said Act have not been given.

3. Retrenchment Compensation paid to workers hitherto was treated as deferred revenue expenditure and one fifth of the amount was amortised over a period of 5 years. Unamortised balance at the end of the current year of Rs.26.09 Lacs has been amortised in compliance with the Accounting Standard-15 "Employee Benefits (Revised)thand same has been shown under extraordinary items in the Profit and Loss Account.

4. There was no production during the year as the production is under suspension since September 2006 due to non availability of required raw materials. The management is evaluating various alternative (viz. different raw materials mix) to re-start the production at the earliest.

5. The Company continues to carry the inventory of Plantations that have grown up and are in saleable condition (i.e. ready to sale) as on the balance sheet date have been recognized as stock in trade and valued at market price amounting to Rs.22.00 lacs (Previous year Rs.66.70 lacs).

6. As required under Accounting Standard on Impairment of Assets (AS-28) issued by the Institute of Chartered Accountants of India, the Company has made Provision for Impairment of Fixed Assets amounting to Rs. 779.38 lacs during the year, as the recoverable amount of the fixed assets is less than carrying amount as stated in the books.

7. During the current financial year the net worth of the Company has been fully eroded due to continuous loss and Provision for Impairment Loss of Fixed Assets.

8. In accordance with the Accounting Standard (AS-15) (Revised) Employee Benefits, actuarial valuation was done in respect of the defined benefit plan of gratuity based on the following assumptions:

No acturial valuation was required for the year as there was no employee as on 31 st March, 2010.

Deferred tax asset for the year ended 31st March, 2010 has not been recognised in accordance with the

9. The Companys activities are classified as belonging to a single business segment of manufacture and trading in Paper products. The Companys operations are largely limited to India.

10. Related Party Disclosure (As identified by the management):

(a) Related Party Relationship during the year

Controlling Company Simplex Realty Limited

(b) Transaction with Related Party

11. Additional information pursuant to the provisions of paragraph 3 & 4 of partII of Schedule VI to the Companies Act, 1956 as certified by the Management.

(e) Licensed and Installed capacity and Production (as certified by the management and accepted by auditors, it being a technical matter).

(ii) There was no Production during the year.

12. Information required pursuant to Part- IV of Schedule VI to the Companies Act, 1956 is annexed hereto.

13. Previous Years figures have been regrouped wherever necessary to conform to this years presentation.