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Notes to Accounts of Star Paper Mills Ltd.
Mar 31, 2025
3.14 Provisions, Contingent Liabilities and Contingent Assets
Provisions involving substantial degree of estimation in measurement are recognised when there is a legal or constructive
obligation as a result of past events and it is probable that there will be an outflow of resources and a reliable estimate can
be made of the amount of obligation. Provisions are not recognised for future operating losses. The amount recognised
as a provision is the best estimate of the consideration required to settle the present obligation at the end of the reporting
period, taking into account the risks and uncertainties surrounding the obligation.
Contingent liabilities are not recognised and are disclosed by way of notes to the financial statements 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 when there is 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 same or a reliable estimate of the amount in this respect cannot be made.
When there is a possible obligation or a present obligation and the likelihood of outflow of resources is remote, no
provision or disclosure for contingent liability is made.
Contingent assets are not recognised but disclosed in the Financial Statements by way of notes to accounts when an
inflow of economic benefits is probable.
Provisions, Contingent liabilities, and Contingent assets are reviewed at each balance sheet date.
3.15 Employee Benefits
Employee benefits are accrued in the year in which services are rendered by the employee.
Short term Employee benefits
Short term employee benefit obligations are measured on an undiscounted basis and are expensed as the related services
are provided. Liabilities for wages and salaries, including non-monetary benefits that are expected to be settled wholly
within twelve months after the end of the period in which the employees render the related service are recognized in
respect of employees'' services up to the end of the reporting period.
Other Long Term Employee Benefits
Leave encashment benefits are payable to employees while in service, retirement and on death while in service or on
termination of employment. With respect to accumulated leaves outstanding at the year-end, liability for leave are
accounted for on the basis of actuarial valuation at the balance sheet date. The cost of providing long term employee
benefits consisting of leave encashment that are not expected to be settled wholly within twelve months are measured as
the present value of the expected future payments to be made in respect of services provided by employees up to the end
of the reporting period using the projected unit credit method. The benefits are discounted using the government securities
(G-Sec) at the end of the reporting period that have terms approximating to the terms of related obligation. Actuarial
gains and losses and past service cost are recognised immediately in the Statement of Profit and Loss for the period in
which they occur. Long term employee benefit obligation recognised in the Balance Sheet represents the present value
of related obligation. Bifurcation of liabilities into Current and Non-current are done based on actuarial valuation report.
Post Employment Benefits
The Company operates the following post employment schemes:
- Defined Benefit Plans
The liability or asset recognized in the Balance Sheet in respect of defined benefit plans is the present value of the defined
benefit obligation at the end of the reporting period less the fair value of plan assets. The Company''s net obligation in
respect of defined benefit plans is calculated separately for each plan by estimating the amount of future benefit that
employees have earned in the current and prior periods. The defined benefit obligation is calculated annually by Actuaries
using the projected unit credit method.
The liability recognized for defined benefit plans is the present value of the defined benefit obligation at the reporting
date less the fair value of plan assets (funded to Life Insurance Corporation of India), together with adjustments for
unrecognized actuarial gains or losses and past service costs. The net interest cost is calculated by applying the discount
rate to the net balance of the defined benefit obligation and the fair value of plan assets. The benefits are discounted
using the government securities (G-Sec) at the end of the reporting period that have terms approximating to the terms of
related obligation. Bifurcation of liabilities into Current and Non-current are done based on actuarial valuation report.
Remeasurements of the net defined benefit obligation, which comprise actuarial gains and losses, the return on plan assets
(excluding interest) and the effect of the asset ceiling, are recognized in other comprehensive income. Remeasurement
recognized in other comprehensive income is reflected immediately in retained earnings and will not be reclassified to
the Statement of Profit and Loss.
- Defined Contribution Plans
In accordance with the provisions of the Employee Provident Funds and Miscellaneous Provisions Act, 1952, eligible
employees of the company are entitled to receive benefits with respect to provident fund, a defined contribution plan, in
which both the company and employee contribute monthly to Provident Fund Scheme the Central Government/Trust at a
determined rate. The Company''s contribution is charged off to the Statement of Profit and Loss as and when incurred.
3.16 Revenue
Revenue from contract with customer:
Revenue from Operations
Revenue from contracts with customers is accounted for only when it has commercial substance, and all the following
criteria are met:
(i) parties to the contract have approved the contract and are committed to performing their respective obligations;
(ii) each party''s rights regarding the goods or services to be transferred and payment terms there against can be
identified;
(iii) consideration in exchange for the goods or service to be transferred is collectible and determinable
The revenue is recognized on satisfaction of performance obligation, when control over the goods or services has been
transferred and/ or goods/ services are delivered/ provided to the customers. Delivery occurs when the goods have been
shipped or delivered to a specific location, and the customer has either accepted the goods under the contract or the
Company has sutficient evidence that all the criteria for acceptance have been satisfied.
Revenue is measured at the amount of transaction price (consideration specified in the contract with the customers)
allocated to that performance obligation. The transaction price of goods sold is net of variable consideration on account
of rebates, claims and discounts, returns, Goods and Service Tax (GST) and such other taxes collected on behalf of third
party not being economic benefits flowing to the company are excluded from revenue. Accumulated experience is used
to estimate and provide for the discounts/ right of return, using the expected value method.
Other Operating Revenue-Export Benefits :
Export incentives are accounted for in the year of export if the entitlements and realisability thereof can be estimated with
reasonable accuracy and conditions precedent to such benefit is fulfilled.
Interest, Dividend and Claims
Dividend income is recognised when the right to receive payment is established. Interest has been accounted using
effective interest rate method. Insurance claims/ other claims are accounted as and when admitted or settled which ever
is earlier.
3.17 Borrowing Costs
Borrowing cost comprises of interest and other costs incurred in connection with the borrowing of the funds. All
borrowing costs are recognized in the Statement of Profit and Loss using the effective interest method except to the
extent attributable to qualifying Property Plant Equipment (PPE) which are capitalized to the cost of the related assets.
A qualifying PPE is an asset, that necessarily takes a substantial period of time to get ready for its intended use or sale.
Borrowing cost also includes exchange differences to the extent considered as an adjustment to the borrowing costs.
3.18 Taxes on Income
Income tax expense representing the sum of current tax expenses and the net charge of the deferred taxes is recognised
in the income statement except to the extent that it relates to items recognised directly in equity or other comprehensive
income.
Current income tax is provided on the taxable income and recognised at the amount expected to be paid to or recovered
from the tax authorities, using the tax rates and tax laws that have been enacted or substantively enacted by the end of
the reporting period.
Deferred tax is recognised on temporary differences between the carrying amount of assets and liabilities in the Financial
Statements and the corresponding tax bases used in the computation of taxable profit. Deferred tax liabilities are
generally recognised for all taxable temporary differences. Deferred tax assets are generally recognised for all deductible
temporary differences to the extent that it is probable that taxable profits will be available against which those deductible
temporary differences can be utilized.
Deferred tax liabilities and assets are measured at the tax rates that are expected to apply in the period in which the
liability is settled or the asset realized, based on tax rates (and tax laws) that have been enacted or substantively enacted
by the end of the reporting period.
The carrying amount of deferred tax assets is reviewed at the end of each reporting period and reduced to the extent that
it is no longer probable that sufficient taxable profits will be available to allow all or part of the deferred tax asset to be
utilized.
Deferred tax items in correlation to the underline transactions relating to Other Comprehensive Income and Equity are
recognised in Other Comprehensive Income and Equity respectively.
3.19 Earnings Per Share
Basic earnings per share are computed by dividing the net profit attributable to the equity holders of the company by
the weighted average number of equity shares outstanding during the period. Diluted earnings per share is computed by
dividing the net profit attributable to the equity holders of the company by the weighted average number of equity shares
considered for deriving basic earnings per share and also the weighted average number of equity shares that could have
been issued upon conversion of all dilutive potential equity shares.
3.20 Segment Reporting
Operating segments are identified and reported taking into account the different risk and return, organisation structure
and in a manner consistent with the internal reporting provided to the Chief Operating Decision Maker (CODM). CODM is
responsible for allocating resources and assessing performance of the operating segments, financial results, forecasts
or plan for the segment and accordingly is identified as the chief operating decision maker.
The company operates in one business segment of Paper, Paper Board and related products being primary segment and
all other activities revolve around the main activity.
3.21 Government Grants and Subsidies/ Incentives
Grant from government are recognised when there is reasonable assurance that the condition attached to them will be
complied and grant/ subsidy will be received and their exists no significant uncertainty with regard to the collection.
Revenue grants including subsidy/rebates are credited to the Statement of Profit and Loss Account under "Other Operating
Income" or deducted from the related expenses for the period to which these are related. Grants which are meant for
purchase, construction or otherwise acquire non current assets are recognized as Deferred Income and transferred to
the Statement of Profit and Loss on a systematic basis over the useful life of the respective asset. Grants relating to
non-depreciable assets is transferred to the Statement of Profit and Loss over the periods as specified for meeting the
obligations related to such grants.
3.22 Exceptional items
Exceptional items include income or expenses that are part of ordinary activities. However, they are of such significance
and nature that separate disclosure enables the user of financial statements to understand the impact more clearly.
These items are identified by their size or nature to facilitate comparison with prior periods and assess underlying trends
in the Company''s financial performance.
3.23 Statement of Cash Flows
Cash flows are reported using the indirect method, whereby profit before tax is adjusted for the effects of transactions of
a non-cash nature, any deferrals, or accruals of past or future operating cash receipts or payments and items of income or
expenses associated with investing or financing flows. Accordingly, the Company''s cash flows from operating, investing,
and financing activities are segregated.
For reporting Statement of Cash Flows, cash and cash equivalents consist of cash on hand, cheques on hand, balance
with banks, and short term highly liquid investments, as stated above, net of outstanding book overdrafts, as they are
considered an integral part of the Company''s cash management.
4. Critical accounting judgments, assumptions and key sources of estimation and uncertainty
The preparation of the financial statements in conformity with the measurement principle of Ind AS requires management
to make estimates, judgments and assumptions that affect the application of accounting policies and the reported amount
of assets and liabilities, the disclosures of contingent assets and liabilities at the date of the financial statements and
reported amount of revenues and expenses during the period. Accounting estimates could change from period to period.
Actual results could differ from those estimates. Appropriate changes in estimates are made as management becomes
aware of changes in circumstances surrounding the estimates. Differences between the actual results and estimates
are recognised in the year in which the results are known / materialised and, if material, their effects are disclosed in the
notes to the financial statements.
Application of accounting policies that require significant areas of estimation, uncertainty and critical judgments and
the use of assumptions in the financial statements that have a significant risk of causing a material adjustment to the
carrying amount of assets and liabilities within the next financial year are discussed below. The notes dealt with in 4.1 to
4.6 below provide an overview of the areas that involved a high degree of judgement or complexity and of items which
are likely to be materially adjusted due to estimates and assumptions turning out to be different than those originally
assessed. Detailed information about each of these estimates and judgements are included in the relevant notes together
with information about basis of calculation of each affected line item in the financial statements.
4.1 Depreciation / Amortization and Impairment on Property, Plant and Equipment and ROU assets
Property, Plant and Equipment (including ROU assets) are depreciated/ amortized on Straight Line Basis/Written Down
Value Basis over the estimated useful lives (or lease term, if shorter) in accordance with Schedule II to the Companies Act,
2013, taking into account the estimated residual value, wherever applicable. The Company reviews the estimated useful
lives of the assets regularly in order to determine the amount of depreciation / amortization and amount of impairment
expense to be recorded during any reporting period. This reassessment may result in change estimated in future periods.
The company reviews its carrying value of its Tangible whenever there is objective evidence that the assets are impaired.
In such situation asset''s recoverable amount are estimated which are higher of asset''s or cash generating units (CGU) fair
value less cost of disposal and its value in use. In assessing value in use the estimated future cash flows are discounted
using pre-tax discount rate which reflect the current assessment of time value of money. In determining fair value less
cost of disposal, recent market realisations are considered or otherwise in absence of such transactions appropriate
valuations are adopted.
4.2 Right-of-use assets and lease liability
Ind AS 116 requires lessees to determine the lease term as the non-cancellable period of a lease adjusted with any option
to extend or terminate the lease, if the use of such option is reasonably certain. The Company makes an assessment on
the expected lease term on a lease-by-lease basis and thereby assesses whether it is reasonably certain that any options
to extend or terminate the contract will be exercised. In evaluating the lease term, the Company considers factors such as
any significant leasehold improvements undertaken over the lease term, costs relating to the termination of the lease and
the importance of the underlying asset to the company''s operations taking into account among other thing, the location
of the underlying asset and the availability of suitable alternatives. The lease term in future periods is reassessed to
ensure that the lease term reflects the current economic circumstances.
4.3 Impairment allowances on trade receivables
The Company evaluates whether there is any objective evidence that trade receivables are impaired and determines the
amount of impairment allowance as a result of the inability of the customers to make required payments. The Company
bases the estimates on the ageing of the trade receivables balance, credit-worthiness of the trade receivables and
historical write-off experience. In case of variation in financial condition the amount of impairment as recognised may
vary having a significant impact on the Financial Statements.
4.4 Income taxes
Significant judgment is required in determination of taxability of certain income and deductibility of certain expenses
during the estimation of the provision for income taxes. Also there are matters pending before various judicial authorities
outcome whereof are uncertain. Further, material judgement and assumptions are involved for arriving at timing
differences and consequential adjustments on account of deferred taxation.
4.5 Defined benefit obligation (DBO)
Critical estimate of the DBO involves a number of critical underlying assumptions such as standard rates of inflation,
mortality, discount rate, anticipation of future salary increases etc. as estimated by Independent Actuary appointed for
this purpose by the Management. Variation in these assumptions may significantly impact the DBO amount and the
annual defined benefit expenses.
4.6 Provisions and Contingencies
Provisions and liabilities are recognised in the period when it becomes probable that there will be a future outflow of
funds resulting from past operations or events and the amount of cash outflow can be reliably estimated. The timing of
recognition and quantification of the liability requires the application of judgement to existing facts and circumstances,
which can be subject to change.
Management judgment is required for estimating the possible outflow of resources, if any, in respect of contingencies/
claim/litigations/ against the Company as it is not possible to predict the outcome of pending matters with accuracy.
The carrying amounts of provisions and liabilities and estimation for contingencies are reviewed regularly and revised to
take account of changing facts and circumstances.
Fair Valuation Techniques
The fair values of the financial assets and liabilities are determined at the amount that would be received to sell an asset or paid
to transfer a liability in an orderly transaction between market participants at the measurement date.
The following methods and assumptions were used to estimate the fair values:
The fair value of cash and cash equivalents, trade receivables and payables, current financial liabilities/financial assets and
borrowings approximate their carrying amount largely due to the short-term nature of these instruments. The management
considers that the carrying amounts of financial assets and financial liabilities recognised at nominal cost/amortised cost in the
financial statements approximate their fair values.
Investments in liquid and short-term mutual funds are determined using quoted market prices at the reporting date multiplied by
the quantity held. Quoted Investments for which quotations are not available have been determined by an external independent
valuer appointed in this respect with reference to the market value of the investment held by that company, Price to Earnings
ratio of similar sector company along with premium/discount for controlling interest.
Fair value hierarchy
The following table presents fair value hierarchy of assets and liabilities measured at fair value on a recurring basis as at March
31,2025:
The Company categorizes assets and liabilities measured at fair value into one of three levels depending on the ability to observe
inputs employed for such measurement:
(a) Level 1: Inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities.
(b) Level 2: Inputs other than quoted prices included within level 1 that are observable either directly or indirectly for the asset
or liability.
(c) Level 3: Inputs for the asset or liability which are not based on observable market data.
During the year ended March 31,2025 , there were no transfers between Level 1, Level 2 and Level 3.
The Inputs used in fair valuation measurement are as follows:
Inputs used in fair valuation of Financial assets and liabilities not within the operating cycle of the company is amortized based
on the borrowing rate of the company.
Equity Instruments are valued based on the market value of investments held by that company, Price to Earning ratio of similar
sector company along with premium/discount of controlling interest.
FINANCIAL RISK FACTORS
The Company''s activities are exposed to variety of financial risks. The key financial risks includes market risk, credit risk and
liquidity risk. The Company''s focus is to for see the unpredictability of financial markets and seek to minimize potential adverse
effects on its financial performance. The risks are governed by appropriate policies and procedures and accordingly financial
risks are identified, measured and managed with the Company''s policies and risk objectives.
MARKET RISK
Market risk is the risk or uncertainty arising from possible market price fluctuations resulting in variation in the fair value of
future cash flows of a financial instrument. The major components of Market risks are foreign currency risk, interest rate risk
and other price risk. Financial instruments affected by market risk includes trade receivables, borrowings, investments and trade
and other payables.
OTHER PRICE RISK
The company''s investments in mutual funds and equity instruments which are fair valued through profit and loss and other
comprehensive income respectively. The company''s investment in Equity instruments are strategic and long term in nature and
these are further subject to impairment testing as per the policy followed in this respect and are not expected to be material
whereas investments in mutual funds are for short term in nature for deployment of surplus with the company which are subject
to market conditions.
CREDIT RISK
Credit risk is the risk that counterparty will not meet its obligations under a financial instrument or customer contract, leading to
a financial loss. The Company is exposed to credit risk from its operating activities (primarily trade receivables). To manage this,
the management has a credit policy in place and the exposure to credit risk is monitored on an ongoing basis. Major supplies
are through whole seller who have paid deposit to the company and the risk involved in payment default is minimum. Further,
evaluating the credit worthiness of the customers has minimised the risk of default by other segment customers. Besides,
the risk of export receivables is covered under Credit Insurance. The Company periodically assesses the financial reliability of
customers, taking into account the financial condition, current economic trends and ageing of accounts receivable. Individual
risk limits are set accordingly. Further the company obtains necessary security including letter of credits and/or bank guarantee
to mitigate its credit risk.
The carrying amount of respective financial assets recognised in the financial statements, (net of impairment losses) represents
the Company''s maximum exposure to credit risk. The concentration of credit risk is limited due to the customer base being large
and unrelated. Of the trade receivables balance at the end of the year, there are three customers aggregating to Rs.235.32 Lakhs
which accounted for more than 10% of the accounts receivable as each case at March 31,2025.
The Company establishes an allowance for impairment that represents its estimate of incurred losses in respect of trade
and other receivables. Receivables from customers are reviewed/evaluated periodically by the management and appropriate
provisions if considered necessary are made to the extent recovery there against has been considered to be remote.
Financial assets that are neither past due nor impaired
Cash and cash equivalents, investment and deposits with banks are neither past due nor impaired. Cash and cash equivalents
with banks are held with reputed and credit worthy banking institutions.
Financial assets that are past due but not impaired
Trade receivables disclosed above includes certain amounts that are past due at the end of the reporting period but against
which no credit losses has been expected to arise.
LIQUIDITY RISK
Liquidity risk is defined as the risk that the Company will not be able to settle or meet its obligations on time or at a reasonable
price. The Company''s objective is to maintain optimum level of liquidity to meet it''s cash and collateral requirements at all times.
The company relies on internal accruals to meet its fund requirement.
Liquidity and interest risk tables
The following tables detail the Company''s remaining contractual maturity for its non-derivative financial liabilities with agreed
repayment periods. The tables have been drawn up based on the undiscounted cash flows of financial liabilities based on the
earliest date on which the Company can be required to pay. The tables include both interest and principal cash flows as on
March 31,2025. The Company does not have any borrowings hence there is no interest risk.
The company has current financial assets which will be realised in ordinary course of business. The Company ensures that it has
sufficient cash on demand to meet expected operational expenses.
Capital Management
The primary objective of the Company''s capital management is to ensure that it maintains a healthy capital ratio in order to
support its business and maximise shareholder value. The Company''s objective when managing capital is to safeguard its ability
to continue as a going concern so that it can continue to provide returns for shareholders and benefits for other stake holders.
The Company is focused on keeping strong total equity base to ensure independence, security, as well as a high financial
flexibility for potential future borrowings, if required without impacting the risk profile of the Company.
Since there is no debt outstanding as on March 31,2025 and March 31,2024, so the disclosures of Capital Gearing Ratio for the
same period has not been furnished
37. POST RETIREMENT EMPLOYEE BENEFITS
The disclosures required under Indian Accounting Standard 19 on ''''Employee Benefits'''' are given below:
b) Defined Benefit Plans
The company has a defined benefit Gratuity plan. Every Employee who has completed five years or more of service is entitled
to Gratuity on terms not less favorable than the provisions of The Payment of Gratuity Act, 1972. The Company makes annual
contribution of Gratuity to Life Insurance Corporation of India.
The Company also extends benefit of compensated absences to the employee, whereby they are eligible to carry forward there
entitlement of earned leave for encashment upon retirement/separation. This is an unfunded plan.
The employee''s gratuity fund scheme managed by Life Insurance Corporation of India is a defined benefit plan. The present
value of obligation is determined based on actuarial valuation using the Projected Unit Credit Method, which recognizes each
period of service as giving rise to additional unit of employee benefit entitlement and measures each unit separately to build up
the final obligation.
B. Capital Commitment :
Estimated amount of contracts remaining to be executed on capital account (net of advances of Rs.6.77 Lakhs) Rs.57.41
Lakhs whereas for March 31,2024 (net of advances of Rs.20.26 Lakhs) Rs.86.74 Lakhs.
40. CONTINGENT ASSETS:
A Contingent asset is a possible asset that arises from past events and whose existence will be confirmed only by the
occurance or non occurance of one or more uncertain future events not wholly within the control of the entity. During the
normal course of business, unresolved claims remains outstanding. The inflow of economic benefits,in respect of such
claims cannot be measured due to uncertainties that surround the related events and circumstances.
41.C.1 Investment in I S G Traders Limited has been shown at carrying fair value. Cost of investment in I S G Traders Limited is
Rs. 3,579.89 Lakhs (as at March 31,2024 Rs.3,579.89 Lakhs). (Refer Note No.2.2).
41. C.2 Reference is invited to Note No.50 regarding disqualification of the director and the amount of remuneration paid in
earlier years and lying unpaid as on this date.
41.1 Terms and conditions of transactions with related parties
The sales to and purchases from related parties are made on terms equivalent to those that prevail in arm''s length
transactions. Outstanding balances at the year end are unsecured and settlement occurs in cash. The Company has
not provided any guarantee to related parties towards their borrowing facilities. For the year ended March 31, 2025, the
Company has not recorded any impairment allowances in respect of receivables relating to amounts owed by related
parties (March 31, 2024 Rs. NIL). This assessment is undertaken each financial year through examining the financial
position of the related party and the market in which the related party operates.
41.2 The above related party information is as identified by the management and relied upon by the auditor.
42. SEGMENT REPORTING
a) The Company operates mainly in one business segment viz Paper , Paper Board and related products being primary
segment and all other activities revolve around the main activity. The secondary segment is geographical, information
related to which is given as under :
46. The financial risk associated to agriculture would include climate change, price fluctuation and input cost increases.
Being dependent on rainfall, any shortfall would directly impact the production. The sale of clonal plant is largely through
the farmer system, any price fluctuation would impact profitability. Increased wages also has a direct impact on the cost
of production because of labour intensive nature of the business operations.
Management is continuously monitoring all the above factors. Investment in irrigation, a planned replanting programme
to ensure higher yields and improving efficiency of labour and modernisation are some of the measures taken by the
management to mitigate the risks.
47. Trade Receivables , Trade payables and advances recoverable are subject to confirmation /reconcilation and consequential
adjustments,if any arising thereof. In the opinion of the management current assets, loans and advances will have on
realisation in the ordinary course of business atleast equal to the amount at which they are stated in the Balance Sheet.
48. DISCLOSURE REGARDING BORROWED FUNDS
No funds have been advanced or loaned or invested (either from borrowed funds or share premium or any other sources or
kind of funds) by the Company to or in any other person(s) or entity(ies), including foreign entities ("Intermediaries") with
the understanding, whether recorded in writing or otherwise, that the Intermediary shall lend or invest in party identified by
or on behalf of the Company (Ultimate Beneficiaries). The Company has not received any fund from any party(s) (Funding
50. An erstwhile Director who had been disqualified under section 164(2) with respect to an another company in which he
was director, has filed a writ petition before the Honorable High Court Calcutta challenging the said disqualification and
the matter is pending before the said court as on this date. Pending descision of the court, remuneration of Rs.169 lakhs
as agreed upon even though provided for in earlier years has not been paid. Remuneration of Rs.555.13 lakhs paid prior
to filing of the writ petition, however, remain charged out in the accounts and recoverability thereof is subject to the
descision of the court.Consequential, adjustments depending on the decision of the court will be given effect to in the
year of determination.
51. EXCEPTIONAL ITEMS
In respect of previous year, exceptional items represent losses arising due to incidence of fire on 18th December, 2023 in
the Company''s plant at Saharanpur. Losses incurred on account of destructions, damage of inventory(wood) amounting
to Rs.175.16 Lakhs and other expenses for repairs etc amounting to Rs. 4.65 Lakhs, have been aggregated and shown
under Exceptional Items in the Financial Statements of the company.
(f) The company has no any such transaction which is not recorded in the books of accounts that has been surrendered or
disclosed as income during the year in the tax assessment under Income Tax Act,1961.
53. Previous year''s figures have been regrouped/reclassified to conform with current year presentation wherever considered
necessary.
54. These financial statements have been approved by the Board of Directors of the company on 29th May, 2025.
As per our report of even date
For Lodha & Co., LLP
Chartered Accountants
(Vikram Matta)
Partner Shrivardhan Goenka
Place : New Delhi Saurabh Arora Sanjeev K. Garg Madhukar Mishra Dr. R.C. Lodha
Date : 29th May, 2025 Company Secretary Chief Financial Officer Managing Director Directors
Mar 31, 2024
Fair Valuation Techniques
The fair values of the financial assets and liabilities are determined at the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.
The following methods and assumptions were used to estimate the fair values:
The fair value of cash and cash equivalents, trade receivables and payables, current financial liabilities/financial assets and borrowings approximate their carrying amount largely due to the short-term nature of these instruments. The management considers that the carrying amounts of financial assets and financial liabilities recognised at nominal cost/amortised cost in the financial statements approximate their fair values.
Investments in liquid and short-term mutual funds are determined using quoted market prices at the reporting date multiplied by the quantity held. Quoted Investments for which quotations are not available have been determined by an external independent valuer appointed in this respect with reference to the market value of the investment held by that company, Price to Earnings ratio of similar sector company along with premium/discount for controlling interest.
(*) Figures in round brackets ( ) indicate figures as at March 31,2023
The Company categorizes assets and liabilities measured at fair value into one of three levels depending on the ability to observe inputs employed for such measurement:
(a) Level 1: Inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities.
(b) Level 2: Inputs other than quoted prices included within level 1 that are observable either directly or indirectly for the asset or liability.
(c) Level 3: Inputs for the asset or liability which are not based on observable market data.
During the year ended March 31,2024 , there were no transfers between Level 1, Level 2 and Level 3.
The Inputs used in fair valuation measurement are as follows:
Inputs used in fair valuation of Financial assets and liabilities not within the operating cycle of the company is amortized based on the borrowing rate of the company.
Equity Instruments are valued based on the market value of investments held by that company, Price to Earnings ratio of similar sector company along with premium/discount of controlling interest.
FINANCIAL RISK FACTORS
The Company''s activities are exposed to variety of financial risks. The key financial risks includes market risk, credit risk and liquidity risk. The Company''s focus is to for see the unpredictability of financial markets and seek to minimize potential adverse effects on its financial performance. The risks are governed by appropriate policies and procedures and accordingly financial risks are identified, measured and managed with the Companyâs policies and risk objectives.
MARKET RISK
Market risk is the risk or uncertainty arising from possible market price fluctuations resulting in variation in the fair value of future cash flows of a financial instrument. The major components of Market risks are foreign currency risk, interest rate risk and other price risk. Financial instruments affected by market risk includes trade receivables, borrowings, investments and trade and other payables.
FOREIGN CURRENCY RISK
Foreign currency risk is the risk that the fair value or future cash flows of an exposure will fluctuate because of changes in foreign exchange rates. The Company''s exposure to the risk of changes in foreign exchange rates relates primarily to the Company''s foreign currency denominated transactions.
The Company evaluates exchange rate exposure arising from these transactions and follows established risk management policies.
OTHER PRICE RISK
The company''s investments in mutual funds and equity instruments which are fair valued through profit and loss and other comprehensive income respectively. The company''s investment in Equity instruments are strategic and long term in nature and these are further subject to impairment testing as per the policy followed in this respect and are not expected to be material whereas investments in mutual funds are for short term in nature for deployment of surplus with the company which are subject to market conditions.
CREDIT RISK
Credit risk is the risk that counterparty will not meet its obligations
under a financial instrument or customer contract, leading to a financial loss. The Company is exposed to credit risk from its operating activities (primarily trade receivables). To manage this, the management has a credit policy in place and the exposure to credit risk is monitored on an ongoing basis. Major supplies are through whole seller who have paid deposit to the company and the risk involved in payment default is minimum. Further, evaluating the credit worthiness of the customers has minimised the risk of default by other segment customers. Besides, the risk of export receivables is covered under Credit Insurance. The Company periodically assesses the financial reliability of customers, taking into account the financial condition, current economic trends and ageing of accounts receivable. Individual risk limits are set accordingly. Further the company obtains necessary security including letter of credits and/or bank guarantee to mitigate its credit risk.
The carrying amount of respective financial assets recognised in the financial statements, (net of impairment losses) represents the Company''s maximum exposure to credit risk. The concentration of credit risk is limited due to the customer base being large and unrelated. Of the trade receivables balance at the end of the year, there are three customers of Rs. 155.36 lakhs which accounted for more than 10% of the accounts receivable as at March 31,2024.
The Company establishes an allowance for impairment that represents its estimate of incurred losses in respect of trade and other receivables. Receivables from customers are reviewed/ evaluated periodically by the management and appropriate provisions are made to the extent recovery there against has been considered to be remote.
Financial Assets That Are Neither Past Due Nor Impaired
Cash and cash equivalents, investment and deposits with banks
are neither past due nor impaired. Cash and cash equivalents with banks are held with reputed and credit worthy banking institutions.
Financial Assets That Are Past Due But Not Impaired
Trade receivables disclosed above includes certain amounts that are past due at the end of the reporting period but against which no credit losses has been expected to arise.
LIQUIDITY RISK
Liquidity risk is defined as the risk that the Company will not be able to settle or meet its obligations on time or at a reasonable price. The Companyâs objective is to maintain optimum level of liquidity to
meet itâs cash and collateral requirements at all times. The company relies on internal accruals to meet its fund requirement.
Liquidity and interest risk tables
The following tables detail the Companyâs remaining contractual maturity for its non-derivative financial liabilities with agreed repayment periods. The tables have been drawn up based on the undiscounted cash flows of financial liabilities based on the earliest date on which the Company can be required to pay. The tables include both interest and principal cash flows as on March 31, 2024. The Company does not have any borrowings hence there is no interest risk.
The company has current financial assets which will be realised in ordinary course of business. The Company ensures that it has sufficient cash on demand to meet expected operational expenses.
Capital Management
The primary objective of the Companyâs capital management is to ensure that it maintains a healthy capital ratio in order to support its business and maximise shareholder value. The Companyâs objective when managing capital is to safeguard its ability to continue as a going concern so that it can continue to provide returns for shareholders and benefits for other stake holders. The Company is focused on keeping strong total equity base to ensure independence, security, as well as a high financial flexibility for potential future borrowings, if required without impacting the risk profile of the Company.
Since there is no debt outstanding as on March 31,2024 and March 31,2023, so the disclosures of Capital Gearing Ratio for the same period has not been furnished
37. POST RETIREMENT EMPLOYEE BENEFITS
The disclosures required under Indian Accounting Standard 19 on ââEmployee Benefitsââ are given below:
b) Defined Benefit Plans
The company has a defined benefit Gratuity plan. Every Employee who has completed five years or more of service is entitled to Gratuity on terms not less favorable than the provisions of The Payment of Gratuity Act, 1972. The Company makes annual contribution of Gratuity to Life Insurance Corporation of India.
The Company also extends benefit of compensated absences to the employee, whereby they are eligible to carry forward there entitlement of earned leave for encashment upon retirement/separation. This is an unfunded plan.
The employeeâs gratuity fund scheme managed by Life Insurance Corporation of India is a defined benefit plan. The present value of obligation is determined based on actuarial valuation using the Projected Unit Credit Method, which recognizes each period of service as giving rise to additional unit of employee benefit entitlement and measures each unit separately to build up the final obligation.
i) Assumptions relating to future salary increases, attrition, interest rate for discount and overall expected rate of return on Assets have been considered based on relevant economic factors such as inflation, market growth and other factors applicable to the period over which the obligation is expected to be settled.
ii) The Company contributed Rs 45.00 lakhs (Previous Year Rs. 135.00 lakhs) to Gratuity fund in 2023-24.
The above sensitivity analysis is based on a change in an assumption while holding all other assumptions constant. In practice, this is unlikely to occur, and changes in some of the assumptions may be correlated. When calculating the sensitivity of the defined benefit obligation to significant actuarial assumptions the same method (projected unit credit method) has been applied as when calculating the defined benefit obligation recognised within the Balance Sheet.
Sensitivity due to mortality and withdrawal are not material and hence impact of change not calculated.
39. COMMITMENTS NOT PROVIDED FOR
Estimated amount of contracts remaining to be executed on capital account (net of advances of Rs.20.26 Lakhs) Rs.86.74 Lakhs whereas for March 31,2023 ( net of advance of Rs.18.91 Lakhs) is Rs. 339.78 Lakhs
|
40. CONTINGENT LIABILITIES NOT PROVIDED FOR IN RESPECT OR |
('' in Lakhs) |
|
|
Particulars |
As at March 31, 2024 |
As at March 31, 2023 |
|
Various show cause notices/demands issued/ raised, which in the opinion of the management are not tenable and are pending with various forum / authorities: |
||
|
1. Sales Tax including Trade Tax (demand paid under protest is '' 278.54 lakhs) |
843.20 |
851.92 |
|
2. Excise Duty |
0.00 |
4.84 |
|
3. Electric Duty |
2.70 |
2.70 |
|
4. Employees State Insurances Corporation |
11.57 |
11.57 |
|
5. Forest Department Dues |
69.10 |
69.10 |
|
6. Entry tax on fuels, etc.(demand paid under protest Rs.25 lakhs) |
71.92 |
49.00 |
|
7. Workers Claims |
52.15 |
50.65 |
|
8. Compensation Claimed by Railway Authorities |
3200.00 |
3200.00 |
|
9. Income Tax |
1734.93 |
1583.35 |
|
10. GST (demand paid under protest '' 24.88 lakhs) |
1718.48 |
1145.82 |
|
11. Municipal Corporation (Nagar Nigam) |
468.77 |
181.45 |
|
12. Others |
560.00 |
560.00 |
Note: The Company''s pending litigations comprises of claim against the company and proceedings pending with Taxation/ Statutory/ Government Authorities. The Company has reviewed all its pending litigations and proceedings and has made adequate provisions, and disclosed the contingent liabilities, where applicable, in its financial statements.
40.1 Contingent Assets :
A contingent asset is a possible asset that arises from past events and whose existence will be confirmed only by the occurrence or non occurrence of one or more uncertain future events not wholly within the control of the entity. During the normal course of business , unresolved claims remains outstanding. The inflow of economic benefits , in respect of such claims cannot be measured due to uncertainities that sorround the related events and circumstances.
41. RELATED PARTY DISCLOSURE AS IDENTIFIED BY THE MANAGEMENT IN ACCORDANCE WITH THE INDIAN ACCOUNTING STANDARD (IND AS) 24 ON âRELATED PARTY DISCLOSURES" ARE AS FOLLOWS:
41.C.1 Investment in I S G Traders Limited has been shown at fair value. Cost of investment in I S G Traders Limited is Rs. 3,579.89 lakhs (as at March 31,2023 Rs.3,579.89 lakhs) (Refer Note No.2.2).
41.C.2 Reference is invited to Note No.50 regarding disqualification of the director and the amount of remuneration paid in earlier years and lying unpaid as on this date.
41.1 Terms and conditions of transactions with related parties
The sales to and purchases from related parties are made on terms equivalent to those that prevail in arm''s length transactions. Outstanding balances at the year end are unsecured and settlement occurs in cash. The Company has not provided any guarantee to related parties towards their borrowing facilities. For the year ended March 31,2024, the Company has not recorded any impairment allowances in respect of receivables relating to amounts owed by related parties (March 31,2023 Rs. Nil). This assessment is undertaken each financial year through examining the financial position of the related party and the market in which the related party operates.
41.2 The above related party information is as identified by the management and relied upon by the auditor.
42. SEGMENT REPORTING
a) The Company operates mainly in one business segment viz Paper, Paper Board and related products being primary segment and all other activities revolve around the main activity. The secondary segment is geographical, information related to which is given as under:
b) Sales to three Customers of the Company is Rs. 16,798.90 lakhs (Previous Year Rs.16,354.81 lakhs) which is more than 10% of the Company''s total turnover.
Trade Receivables are generally non-interest bearing on agreed payment terms and interest is charged beyond agreed terms. Contract liabilities include advances received against delivery of Paper. The Performance obligation in relation to revenue recognition arising from contract with customer is satisfied upon despatch of goods to customer.
44.1 In absence of certainty with regard to recovery thereof, entire amount of Rs.45 Lakhs has been considered doubtful as provided in the books of accounts in earlier year and no interest income has been recognised on such loan thereafter.
46. The financial risk associated to agriculture would include climate change, price fluctuation and input cost increases. Being dependent on rainfall, any shortfall would directly impact the production. The sale of clonal plant is largely through the farmer system, any price fluctuation would impact profitability. Increased wages also has a direct impact on the cost of production because of labour intensive nature of the business operations.
Management is continuously monitoring all the above factors. Investment in irrigation, a planned replanting programme to ensure higher yields and improving efficiency of labour and modernisation are some of the measures taken by the management to mitigate the risks.
47. Trade Receivables, Trade payables and advances recoverable are subject to confirmation /reconcilation and consequential adjustments,if any arising thereof. In the opinion of the management current assets, loans and advances will have on realisation in the ordinary course of business atleast equal to the amount at which they are stated in the Balance Sheet.
48. DISCLOSURE REGARDING BORROWED FUNDS HAVE BEEN CONSIDERED PART OF OTHER DISCLOSURES:
No funds have been advanced or loaned or invested (either from borrowed funds or share premium or any other sources or kind of funds) by the Company to or in any other person(s) or entity(ies), including foreign entities (âIntermediaries") with the understanding, whether recorded in writing or otherwise, that the Intermediary shall lend or invest in party identified by or on behalf of the Company (Ultimate Beneficiaries). The Company has not received any fund from any party(s) (Funding Party) with the understanding that the Company shall whether, directly or indirectly lend or invest in other persons or entities identified by or on behalf of the Funding Party (âUltimate Beneficiaries") or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.
50. An erstwhile Director who had been disqualified under section 164(2) with respect to an another company in which he was director, has filed a writ petition before the Honorable High Court Calcutta challenging the said disqualification and the matter is pending before the said court as on this date. Pending descision of the court, remuneration of Rs.169 lakhs as agreed upon even though provided for in earlier years has not been paid. Remuneration of Rs.555.13 lakhs paid prior to filing of the writ petition, however, remain charged out in the accounts and recoverability thereof is subject to the descision of the court.Consequential, adjustments depending on the decision of the court will be given effect to in the year of determination.
51. EXCEPTIONAL ITEMS
(i) In respect of current year, exceptional items represent losses arising due to incidence of fire on 18th December, 2023 in the Company''s plot at Saharanpur. Losses incurred on account of destructions, damage of inventory(wood) amounting to Rs.175.16 Lakhs and other expenses for repairs etc amounting to Rs. 4.65 Lakhs, have been aggregated and shown under Exceptional Items in the Financial Statements of the company .
(ii) In respect of previous year, exceptional items represents losses arising due to incidences of fire on 2nd November 2022 and 06th March 2023 in the finishing house area and one of the godown respectively at Company''s plant at Saharanpur. In case of fire on 2nd November 2022, operations remained suspended for nine days till 10th November 2022. Losses incurred on account of destructions, damage of inventories amounting to Rs.1196.58 Lakhs (including Rs. 338.47 Lakhs pertaining to fire on 06th March 2023) and repairs, clearing up expenses etc amounting to Rs. 29.15 Lakhs , have been aggregated and after adjusting the amount of recovery against sale of waste etc. have been shown under exceptional items in the financial results of the Company.
(iii) Claims on account of insurance with respect to above are being given effect to on crystallisation of the amount in this respect.
52. Other Disclosure required under Schedule III of the Companies Act,2013 :
(a) Struck off companies balances
Based on the information to the extent available with the company,the following table depicts the details transactions undertaken with a company struck-off under section 248 of the Companies Act, 2013:
(b) The company has not been declared as a wilful defaulter by any Banks or Financial Institutions or any other Lender.
(c) The Company does not have any Benami Property, where any proceeding has been initiated or pending against the Company for holding any Benami Property.
(d) The Company does not have any charges or satisfaction which is yet to be registered with ROC beyond the statutory period.
(e) The company has not traded or invested in Crypto currency or Virtual currency during the financial year.
(f) The company has no any such transaction which is not recorded in the books of accounts that has been surrendered or disclosed as income during the year in the tax assessment under Income Tax Act,1961.
53. Previous yearâs figures have been regrouped/reclassified to conform with current year presentation wherever considered necessary.
54. These financial statements have been approved by the Board of Directors of the company on 24th May, 2024.
Mar 31, 2023
3.12 Provisions, Contingent Liabilities and Contingent Assets
Provisions involving substantial degree of estimation in measurement are recognised when there is a legal or constructive obligation as a result of past events and it is probable that there will be an outflow of resources and a reliable estimate can be made of the amount of obligation. Provisions are not recognised for future operating losses.
The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the end of the reporting period, taking into account the risks and uncertainties surrounding the obligation.
Contingent liabilities are not recognised and are disclosed by way of notes to the financial statements 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 when there is 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 same or a reliable estimate of the amount in this respect cannot be made.
Contingent assets are not recognised but disclosed in the Financial Statements by way of notes to accounts when an inflow of economic benefits is probable.
3.13 Employee Benefits
Employee benefits are accrued in the year in which services are rendered by the employees. Short term employee benefits are recognised as an expense in the statement of profit and loss for the year in which the related service is rendered.
Contribution to defined contribution plans such as Provident Fund etc, is being made in accordance with statute and are recognised as and when incurred.
Employees benefits using defined benefit plans for post retirement benefits are recognised using actuarial valuation techniques at the close of each year. Remeasurements comprising of actuarial gains and losses, are recognised immediately in the Balance Sheet with a corresponding debit or credit to retained earnings through Other Comprehensive Income TOCIâ) in the period in which they occur. Remeasurements are not reclassified to Profit or Loss in subsequent periods. The Liability recognised in the Balance Sheet in respect of post retirement benefits is the present value of the defined benefit obligation as at the balance sheet date. The defined benefit obligation is calculated by external actuaries using the projected Unit credit method.
Leave Encashment Benefits: Leave encashment benefits are payable to employees while in service, retirement and on death while in service or on termination of employment. With respect to accumulated leaves outstanding at the year-end, liability for leave are accounted for on the basis of actuarial valuation at the balance sheet date. The present value of such obligation is determined by the projected unit credit method as at the Balance Sheet date through which the obligations are settled. The resultant actuarial gains or losses on change in present value of defined benefit obligation or change in return of the plan assets is
recognized as an income or expense in the Statement of Profit and Loss. Bifurcation of liabilities into Current and Non-current are done based on actuarial valuation report.
3.14 Revenue
Revenue from contract with customer:
Revenue from Operations
Revenue from contracts with customers is accounted for only when it has commercial substance, and all the following criteria are met:
i) parties to the contract have approved the contract and are committed to performing their respective obligations;
ii) each party''s rights regarding the goods or services to be transferred and payment terms there against can be identified;
iii) consideration in exchange for the goods or service to be transferred is collectible and determinable.
The revenue is recognized on satisfaction of performance obligation, when control over the goods or services has been transferred and/ or goods/ services are delivered/ provided to the customers. Delivery occurs when the goods have been shipped or delivered to a specific location, and the customer has either accepted the goods under the contract or the Company has sutficient evidence that all the criteria for acceptance have been satisfied.
Revenue is measured at the amount of transaction price (consideration specified in the contract with the customers) allocated to that performance obligation. The transaction price of goods sold is net of variable consideration on account of discounts offered by the company and excludes amounts collected on behalf of third parties.
Other Operating Revenue-Export Benefits :
Export incentives are accounted for in the year of export if the entitlements and realisability thereof can be estimated with reasonable accuracy and conditions precedent to such benefit is fulfilled.
Interest, Dividend and Claims
Dividend income is recognised when the right to receive payment is established. Interest has been accounted using effective interest rate method. Insurance claims/ other claims are accounted as and when admitted or settled which ever is earlier.
3.15 Borrowing Costs
Borrowing cost comprises of interest and other costs incurred in connection with the borrowing of the funds. All borrowing costs are recognised in the Statement of Profit and Loss using the effective interest method except to the extent attributable to qualifying Property Plant Equipment (PPE) which are capitalized to the cost of the related assets. A qualifying PPE is an asset, that necessarily takes a substantial period of time to get ready for its intended use or sale. Borrowing cost also includes exchange differences to the extent considered as an adjustment to the borrowing costs.
3.16 Taxes on Income
Income tax expense representing the sum of current tax expenses and the net charge of the deferred taxes is recognised in the income
statement except to the extent that it relates to items recognised directly in equity or other comprehensive income.
Current income tax is provided on the taxable income and recognised at the amount expected to be paid to or recovered from the tax authorities, using the tax rates and tax laws that have been enacted or substantively enacted by the end of the reporting period.
Deferred tax is recognised on temporary differences between the carrying amount of assets and liabilities in the Financial Statements and the corresponding tax bases used in the computation of taxable profit. Deferred tax liabilities are generally recognised for all taxable temporary differences. Deferred tax assets are generally recognised for all deductible temporary differences to the extent that it is probable that taxable profits will be available against which those deductible temporary differences can be utilized.
Deferred tax liabilities and assets are measured at the tax rates that are expected to apply in the period in which the liability is settled or the asset realized, based on tax rates (and tax laws) that have been enacted or substantively enacted by the end of the reporting period.
The carrying amount of deferred tax assets is reviewed at the end of each reporting period and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the deferred tax asset to be utilized.
3.17 Earnings Per Share
Basic earnings per share are computed by dividing the net profit attributable to the equity holders of the company by the weighted average number of equity shares outstanding during the period. Diluted earnings per share is computed by dividing the net profit attributable to the equity holders of the company by the weighted average number of equity shares considered for deriving basic earnings per share and also the weighted average number of equity shares that could have been issued upon conversion of all dilutive potential equity shares.
3.18 Segment Reporting
Operating Segments are identified and reported taking into account the different risk and return, organisation structure and internal reporting system.
3.19 Government Grants and Subsidies/ Incentives
Grant from government are recognised when there is reasonable assurance that the condition attached to them will be complied and grant/ subsidy will be received and their exists no significant uncertainty with regard to the collection. Export benefits are accounted for as and when the ultimate realisability of such benefits are established
4. Critical accounting judgments, assumptions and key sources of estimation and uncertainty
The preparation of the financial statements in conformity with the measurement principle of Ind AS requires management to make estimates, judgments and assumptions that affect the application of accounting policies and the reported amount of assets and liabilities, the disclosures of contingent assets and liabilities at the date of the
financial statements and reported amount of revenues and expenses during the period. Accounting estimates could change from period to period. Actual results could differ from those estimates. Appropriate changes in estimates are made as management becomes aware of changes in circumstances surrounding the estimates. Differences between the actual results and estimates are recognised in the year in which the results are known / materialised and, if material, their effects are disclosed in the notes to the financial statements.
Application of accounting policies that require significant areas of estimation, uncertainty and critical judgments and the use of assumptions in the financial statements have been disclosed below.
The key assumptions concerning the future and other key sources of estimation uncertainty at the balance sheet date, that have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities within the next financial year are discussed below:
1.1 Impairment loss on trade receivables
The Company evaluates whether there is any objective evidence that trade receivables are impaired and determines the amount of impairment allowance as a result of the inability of the customers to make required payments. The Company bases the estimates on the ageing of the trade receivables balance, credit-worthiness of the trade receivables and historical write-off experience. If the financial conditions
of the trade receivable were to deteriorate, actual write-offs would be higher than estimated.
4.2 Income taxes
Significant judgment is required in determination of taxability of certain income and deductibility of certain expenses during the estimation of the provision for income taxes. The deferred tax liability consequent to fair valuation of land and financial instruments involving estimation for timing differences has been recognised in these financial statements.
4.3 Provisions and Contingencies
Provisions and liabilities are recognised in the period when it becomes probable that there will be a future outflow of funds resulting from past operations or events and the amount of cash outflow can be reliably estimated. The timing of recognition and quantification of the liability requires the application of judgement to existing facts and circumstances, which can be subject to change.
4.4 Defined benefit obligation (DBO)
Critical estimate of the DBO involves a number of critical underlying assumptions such as standard rates of inflation, mortality, discount rate, anticipation of future salary increases etc. as estimated by Independent Actuary appointed for this purpose by the Management. Variation in these assumptions may significantly impact the DBO amount and the annual defined benefit expenses.
Fair Valuation Techniques
The fair values of the financial assets and liabilities are determined at the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.
The following methods and assumptions were used to estimate the fair values:
The fair value of cash and cash equivalents, trade receivables and payables, current financial liabilities/financial assets approximate their carrying amount largely due to the short-term nature of these instruments. The management considers that the carrying amounts of financial assets and financial liabilities recognised at nominal cost/amortised cost in the financial statements approximate their fair values.
Investments in liquid and short-term mutual funds are determined using quoted market prices at the reporting date multiplied by the quantity held. Quoted Investments for which quotations are not available have been determined by an external independent valuer appointed in this respect with reference to the market value of the investment held by that company, P/E ratio of similar sector company along with premium/discount for controlling interest.
The Inputs used in fair valuation measurement are as follows:
Inputs used in fair valuation of Financial assets and liabilities not within the operating cycle of the company is amortized based on the borrowing rate of the company.
Equity Instruments are valued based on the market value of investments held by that company, P/E ratio of similar sector company along with premium/ discount of controlling interest.
FINANCIAL RISK FACTORS
The Company''s activities are exposed to variety of financial risks. The key financial risks includes market risk, credit risk and liquidity risk. The Company''s focus is to for see the unpredictability of financial markets and seek to minimize potential adverse effects on its financial performance. The risks are governed by appropriate policies and procedures and accordingly financial risks are identified, measured and managed with the Company''s policies and risk objectives. MARKET RISK
Market risk is the risk or uncertainty arising from possible market price fluctuations resulting in variation in the fair value of future cash flows of a financial instrument. The major components of Market risks are foreign currency risk, interest rate risk and other price risk. Financial instruments affected by market risk includes trade receivables, borrowings, investments and trade and other payables.
FOREIGN CURRENCY RISK
Foreign currency risk is the risk that the fair value or future cash flows of an exposure will fluctuate because of changes in foreign exchange rates. The Company''s exposure to the risk of changes in foreign exchange rates relates primarily to the Company''s foreign currency denominated transactions.
The Company evaluates exchange rate exposure arising from these transactions and follows established risk management policies.
OTHER PRICE RISK
The company''s investments in mutual funds and equity instruments which are fair valued through profit and loss and other comprehensive income respectively. The company''s investment in Equity instruments are strategic and long term in nature and these are further subject to impairment testing as per the policy followed in this respect and are not expected to be material whereas investments in mutual funds are for short term in nature for deployment of surplus with the company which are subject to market conditions.
CREDIT RISK
Credit risk is the risk that counterparty will not meet its obligations under a financial instrument or customer contract, leading to a financial loss.
The Company is exposed to credit risk from its operating activities (primarily trade receivables). To manage this, the management has a credit policy in place and the exposure to credit risk is monitored on an ongoing basis. Major supplies are through whole seller who have paid deposit to the company and the risk involved in payment default is minimum. Further, evaluating the credit worthiness of the customers has minimised the risk of default by other segment customers. Besides, the risk of export receivables is covered under Credit Insurance. The Company periodically assesses the financial reliability of customers, taking into account the financial condition, current economic trends and ageing of accounts receivable. Individual risk limits are set accordingly. Further the company obtains necessary security including letter of credits and/or bank guarantee to mitigate its credit risk.
The carrying amount of respective financial assets recognised in the financial statements, (net of impairment losses) represents the Company''s maximum exposure to credit risk. The concentration of credit risk is limited due to the customer base being large and unrelated. Of the trade receivables balance at the end of the year, there are three customer of ''. 88.49 lakhs which accounted for more than 10% of the accounts receivable as at March 31, 2023.
The Company establishes an allowance for impairment that represents its estimate of incurred losses in respect of trade and other receivables. Receivables from customers are reviewed/evaluated periodically by the management and appropriate provisions are made to the extent recovery there against has been considered to be remote.
Financial assets that are neither past due nor impaired Cash and cash equivalents, investment and deposits with banks are neither past due nor impaired. Cash and cash equivalents with banks are held with reputed and credit worthy banking institutions.
Financial assets that are past due but not impaired Trade receivables disclosed above includes certain amounts that are past due at the end of the reporting period but against which no credit losses has been expected to arise.
LIQUIDITY RISK
Liquidity risk is defined as the risk that the Company will not be able to settle or meet its obligations on time or at a reasonable price. The Company''s objective is to maintain optimum level of liquidity to meet it''s cash and collateral requirements at all times. The company relies on internal accruals to meet its fund requirement.
Liquidity and interest risk tables
The following tables detail the Company''s remaining contractual maturity for its non-derivative financial liabilities with agreed repayment periods. The tables have been drawn up based on the undiscounted cash flows of financial liabilities based on the earliest date on which the Company can be required to pay. The tables include both interest and principal cash flows as on March 31, 2023. The Company is not having any borrowings hence there is no interest risk.
The company has current financial assets which will be realised in ordinary course of business. The Company ensures that it has sufficient cash on demand to meet expected operational expenses.
Capital Management
The primary objective of the Company''s capital management is to ensure that it maintains a healthy capital ratio in order to support its business and maximise shareholder value. The Company''s objective when managing capital is to safeguard its ability to continue as a going concern so that it can continue to provide returns for shareholders and benefits for other stake holders. The Company is focused on keeping strong total equity base to ensure independence, security, as well as a high financial flexibility for potential future borrowings, if required without impacting the risk profile of the Company.
Since there is no debt outstanding as on March 31, 2023 and March 31, 2022, so the disclosures of Capital Gearing Ratio for the same period has not been furnished
b) Defined Benefit Plans
The company has a defined benefit Gratuity plan. Every Employee who has completed five years or more of service is entitled to Gratuity on terms not less favorable than the provisions of The Payment of Gratuity Act, 1972. The Company makes annual contribution of Gratuity to Life Insurance Corporation of India.
The Company also extends benefit of compensated absences to the employee, whereby they are eligible to carry forward there entitlement of earned leave for encashment upon retirement/separation. This is an unfunded plan.
The employee''s gratuity fund scheme managed by Life Insurance Corporation of India is a defined benefit plan. The present value of obligation is determined based on actuarial valuation using the Projected Unit Credit Method, which recognizes each period of service as giving rise to additional unit of employee benefit entitlement and measures each unit separately to build up the final obligation.
36 (i) The Board of Directors has recommended a dividend of '' 3.50 per share and a special dividend of '' 1.50 per share to be paid on fully paid equity shares in respect of the financial year ended March 31, 2023. This equity dividend is subject to approval by shareholders at the ensuing Annual General Meeting and has not been recognised as a liability in these financial statements. The total estimated equity dividend to be paid is '' 780.42 lakhs.
37. COMMITMENTS NOT PROVIDED FOR
Estimated amount of contracts remaining to be executed on capital account (net of advances of '' 18.91 lakhs) is '' 339.78 lakhs whereas for March,31 2022 (net of advances of '' 72.79 lakhs) is '' 110.72 Lakhs.
38.1 Disclosure as required by Indian Accounting Standard (IND AS) 37 Provisions , Contingent Liabilities and Contingent Assets Contingent Assets :
A contingent asset is a possible asset that arises from past events and whose existence will be confirmed only by the occurrence or non occurrence of one or more uncertain future events not wholly within the control of the entity. During the normal course of business , unresolved claims remains outstanding. The inflow of economic benefits , in respect of such claims cannot be measured due to uncertainities that sorround the related events and circumstances.
39.1 Terms and conditions of transactions with related parties
The sales to and purchases from related parties are made on terms equivalent to those that prevail in arm''s length transactions. Outstanding balances at the year end are unsecured and settlement occurs in cash. The Company has not provided any guarantee to related parties towards their borrowing facilities. For the year ended March 31, 2023, the Company has not recorded any impairment allowances in respect of receivables relating to amounts owed by related parties (March 31, 2022 '' NIL). This assessment is undertaken each financial year through examining the financial position of the related party and the market in which the related party operates.
39.2 The above related party information is as identified by the management and relied upon by the auditor.
40. SEGMENT REPORTING
a) The Company operates mainly in one business segment viz Paper being primary segment and all other activities revolve around the main activity. The secondary segment is geographical, information related to which is given as under :
44. The financial risk associated to agriculture would include climate change, price fluctuation and input cost increases. Being dependent on rainfall, any shortfall would directly impact the production. The sale of clonal plant is largely through the farmer system, any price fluctuation would impact profitability. Increased wages also has a direct impact on the cost of production because of labour intensive nature of the business operations.
Management is continuously monitoring all the above factors. Investment in irrigation, a planned replanting programme to ensure higher yields and improving efficiency of labour and modernisation are some of the measures taken by the management to mitigate the risks.
45. Trade Receivables, Trade payables and advances recoverable are subject to confirmation /reconcilation and consequential adjustments,if any arising thereof. In the opinion of the management current assets, loans and advances will have on realisation in the ordinary course of business atleast equal to the amount at which they are stated in the Balance Sheet.
46 DISCLOSURE REGARDING BORROWED FUNDS HAVE BEEN CONSIDERED PART OF OTHER DISCLOSURES:
No funds have been advanced or loaned or invested (either from borrowed funds or share premium or any other sources or kind of funds) by the Company to or in any other person(s) or entity(ies), including foreign entities (âIntermediariesâ) with the understanding, whether recorded in writing or otherwise, that the Intermediary shall lend or invest in party identified by or on behalf of the Company (Ultimate Beneficiaries). The Company has not received any fund from any party(s) (Funding Party) with the understanding that the Company shall whether, directly or indirectly lend or invest in other persons or entities identified by or on behalf of the Funding Party ("Ultimate Beneficiariesâ) or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.
50. Exceptional item represents losses arising due to incidences of fire on 2nd November 2022 and 06th March 2023 in the finishing house area of the mills and one of the godown of the Company resepectively. In case of fire on 2nd November 2022, operations remained suspended for nine days till 10th November 2022. Losses incurred on account of destructions, damage of inventories amounting to '' 1196.58 Lakhs (including '' 338.47 Lakhs pertaining to fire on 06th March 2023) and repairs, clearing up expenses etc '' 29.15 Lakhs , have been aggregated and after adjusting the amount of recovery against sale of waste etc. have been shown under exceptional items in the financial results of the Company. The claim on account of insurance will be given effect to on crystallisation of the amount in this respect.
As per our report of even date For Lodha & Co
Chartered Accountants
(Boman R.Parakh) Shiromani Sharma C.M. Vasudev
Partner Chairman Shrivardhan Goenka
Dr. Sheela Bhide
Place : New Delhi Saurabh Arora Sanjeev K. Garg Madhukar Mishra Pragya Jhunjhunwala
Date : 29th May, 2023 Company Secretary Chief Financial Officer Managing Director Directors
Significant Accounting Policies and Notes to Accounts (Note No. 1 - 53)
As per our report of even date For Lodha & Co
Chartered Accountants
(Boman R.Parakh) Shiromani Sharma C.M. Vasudev
Partner Chairman Shrivardhan Goenka
Dr. Sheela Bhide
Place : New Delhi Saurabh Arora Sanjeev K. Garg Madhukar Mishra Pragya Jhunjhunwala
Date : 29th May, 2023 Company Secretary Chief Financial Officer Managing Director Directors
Mar 31, 2018
Notes to Financial Statements for the year ended March 31, 2018
43. FIRST TIME ADOPTION OF IND AS-DISCLOSURES, RECONCILIATION ETC.
a) Reconciliation in terms of Ind AS 101 "First time adoption of Indian Accounting Standards"
i) Reconciliation of Equity as at March 31, 2017 and April 1, 2016
|
Particulars |
Ref. Note No. {Under 43(c)} |
As at March 31, 2017 (End of last period presented under Previous GAAP) |
As at April 1,2016 |
||||
|
As per Previous GAAP |
Effect of transition to Ind AS |
As per Ind AS |
As per Previous GAAP |
Effect of transition to Ind AS |
As per Ind AS |
||
|
ASSETS |
|||||||
|
1. Non-Current Assets |
|||||||
|
(a) Property, Plant and Equipment |
(0 |
8,282.63 |
32,124.84 |
40,407.47 |
8,514.76 |
32,124.84 |
40,639.60 |
|
(b) Capital work-in-progress |
245.29 |
245.29 |
53.99 |
53.99 |
|||
|
(c ) Biological Assets other than bearer plants |
(viii) |
32.16 |
32.16 |
55.09 |
55.09 |
||
|
(d) Financial Assets |
|||||||
|
(i) Investments |
(iii) |
3,229.70 |
(1,847.04) |
1,382.66 |
3,229.70 |
(1,944.81) |
1,284.89 |
|
(ii) Others |
(ii) |
216.09 |
(4.36) |
211.73 |
216.00 |
(4.23) |
211.77 |
|
(e) Other Non current Assets |
618.76 |
618.76 |
552.67 |
- |
552.67 |
||
|
2. Current Assets |
|||||||
|
(a) Inventories |
3,287.52 |
3,287.52 |
2,691.39 |
2,691.39 |
|||
|
(b) Financial Assets |
|||||||
|
(i) Investments |
(iv) |
3,202.61 |
53.43 |
3,256.04 |
- |
- |
- |
|
(ii) Trade receivables |
668.34 |
668.34 |
1,030.74 |
1,030.74 |
|||
|
(iii) Cash and Cash equivalents |
489.64 |
489.64 |
420.01 |
420.01 |
|||
|
(iv) Bank balances other than (iii) |
70.45 |
70.45 |
106.77 |
. |
106.77 |
||
|
above |
|||||||
|
(v) Others |
20.56 |
20.56 |
11.28 |
11.28 |
|||
|
(d) Other current Assets |
704.99 |
4.23 |
709.21 |
659.21 |
4.23 |
663.44 |
|
|
(e) Asset held for sale |
3.59 |
3.59 |
1.59 |
- |
1.59 |
||
|
Total Assets |
21,040.17 |
30,363.26 |
51,403.43 |
17,488.11 |
30,235.12 |
47,723.23 |
|
|
EQUITY AND LIABILITIES |
|||||||
|
Equity |
|||||||
|
(a) Equity share capital |
1,560.83 |
1,560.83 |
1,560.83 |
- |
1,560.83 |
||
|
(b) Other Equity |
43(a)(ii) |
10,789.86 |
22,931.11 |
33,720.97 |
4,795.60 |
22,804.28 |
27,599.88 |
|
Liabilities |
|||||||
|
1 Non-current Liabilities |
|||||||
|
(a) Financial liabilities: |
|||||||
|
(i) Other financial liabilities |
839.48 |
839.48 |
783.70 |
- |
783.70 |
||
|
(b) Provisions |
1,033.71 |
1,033.71 |
1,043.84 |
1,043.84 |
|||
|
(c) Deferred tax liabilities (net) |
(vi) |
452.37 |
7,432.15 |
7,884.52 |
1,063.16 |
7,430.84 |
8,494.00 |
|
2 Current Liabilities |
|||||||
|
(a) Financial liabilities: |
|||||||
|
(i) Borrowings |
424.77 |
424.77 |
663.32 |
663.32 |
|||
|
(ii) Trade payables |
4,287.11 |
4,287.11 |
6,283.87 |
6,283.87 |
|||
|
(iii) Other financial liabilities |
976.85 |
976.85 |
643.39 |
- |
643.39 |
||
|
(b) Other Current liabilities |
560.68 |
560.68 |
472.28 |
- |
472.28 |
||
|
(c) Provisions |
55.06 |
55.06 |
50.26 |
- |
50.26 |
||
|
(d) Current tax liabilities (Net) |
59.45 |
59.45 |
127.86 |
127.86 |
|||
|
Total Equity and Liabilities |
21,040.17 |
30,363.26 |
51,403.43 |
17,488.11 |
30,235.12 |
47,723.23 |
|
ii) Reconciliation of Total Equity as given above:
|
Particulars |
Ref. Note No. {Under 43(c)} |
As at March 31, 2017 (End of last period presented under Previous GAAP) |
As at April 01, 2016 (Date of transition) |
|
Total equity (shareholders'' funds) under Previous GAAP |
12,350.69 |
6,356.42 |
|
|
Ind AS Adjustment |
|||
|
Effect on recognition of biological assets other than bearer plant |
(viii) |
32.17 |
55.09 |
|
Effect of fair valuation of Equity instrument measured at fair value through other comprehensive income |
(iii) |
(1,847.05) |
(1,944.81) |
|
Effect of fair valuation of current investment |
(iv) |
53.43 |
|
|
Effect of fair valuation on date of transition as deemed cost and other adjustments under the head Property, Plant and Equipment |
(0 |
32,124.83 |
32,124.83 |
|
Others |
(ii) |
(0.13) |
- |
|
Adjustment of Deferred tax Liability created due to Ind AS impact and reversal of the same during the year. |
(vi) |
(7,432.15) |
(7,430.84) |
|
Total adjustment to equity |
22,931.11 |
22,804.28 |
|
|
Total equity under Ind AS |
35,281.80 |
29,160.70 |
iii) Reconciliation of Statement of Profit and Loss for the year ended March 31, 201 7
|
Particulars |
Ref. Note No. {Under 43(c)} |
As per IGAAP for the year ended March 31, 2017 |
Ind AS Adjustments |
As per Ind As for the year ended March 31, 2017 |
|
REVENUE |
||||
|
Revenue from operations |
34,367.21 |
34,367.21 |
||
|
Other Income |
151.49 |
56.19 |
207.68 |
|
|
Total Revenue |
34,518.70 |
56.19 |
34,574.89 |
|
|
EXPENSES |
||||
|
Cost of materials consumed |
10,276.49 |
10,276.49 |
||
|
Changes in inventories of finished goods, Stock-in-Trade and work-in progress |
316.54 |
316.54 |
||
|
Employee Benefit Expenses |
2,927.42 |
(18.72) |
2,908.70 |
|
|
Finance costs |
127.38 |
127.38 |
||
|
Depreciation, and Amortisation Expenses |
412.38 |
412.38 |
||
|
Other Expenses |
13,749.36 |
25.81 |
13,775.17 |
|
|
Total Expenses |
27,809.57 |
7.09 |
27,816.66 |
|
|
Profit/(loss) before tax |
6,709.13 |
49.10 |
6,758.23 |
|
|
Tax Expense: |
||||
|
Current tax |
1,325.65 |
1,325.65 |
||
|
Deferred tax |
(vi) |
(610.78) |
7.79 |
(602.99) |
|
Profit/(loss) for the year |
5,994.26 |
41.31 |
6,035.57 |
|
|
Other Comprehensive Income |
||||
|
A (i) Items that will not be reclassified to profit or loss |
(0.00) |
79.04 |
79.04 |
|
|
(ii) Income tax related to items that will not be reclassified to profit and loss |
0.00 |
6.48 |
6.48 |
|
|
Total Comprehensive Income for the year, net of tax |
5,994.26 |
126.83 |
6,121.09 |
iv) There is no significant reconciliation items between cash flow prepared under previous GAAP and prepared under Ind AS.
b) FIRST-TIME ADOPTION -
Mandatory Exceptions and optional Exemptions
These financial statements are covered by Ind AS 101, "First Time Adoption of Indian Accounting Standards", as they are the Company''s first Ind AS financial statements for the year ended March 31, 2018.
i) Overall principle:
a) The Company has prepared the opening balance sheet as per Ind AS as at April 1, 2016 (the transition date) by recognizing all assets and liabilities
whose recognition is required by Ind AS, not recognizing items of assets or liabilities which are not permitted by Ind AS, by reclassifying certain items from Previous GAAP to Ind AS as required under the Ind AS, and applying Ind AS in the measurement of recognized assets and liabilities. The accounting policies that the Company used in its opening Ind-AS Balance Sheet may have differed from those that it used for its previous GAAP. The resulting adjustments arising from events and transactions occuring before the date of transition to Ind-AS has been recognized directly in retained earnings at the date of transition.
However, this principle is subject to certain mandatory exceptions and certain optional exemptions availed by the Company as detailed below. ii) Derecognition of financial assets and financial liabilities
The Company has applied the derecognition requirements of financial assets and financial liabilities prospectively for transactions occurring on or after April 1, 2016 (the transition date).
iii) Fair Value as deemed cost for Property, Plant and Equipment
Property, plant and equipment has been carried in accordance with previous GAAP carrying value as deemed cost at the date of transition excepting freehold land land valued at Fair value at the date of transition, which has been considered as deemed cost.
iv) Impairment of financial assets
Ind AS 109 "Financial Instruments" requires the impairment to be carried out retrospectively; however, as permitted by Ind AS 101, the Company, has used reasonable and supportable information that is available without undue cost or effort to determine the credit risk at the date that financial instruments were initially recognized in order to compare it with the credit risk at the transition date. Further, the Company has not undertaken an exhaustive search for information when determining, at the date of transition to Ind AS, whether there have been significant increases in credit risk since initial recognition, as permitted by Ind AS 101.
v) Determining whether an arrangement contains a lease
The Company as on the date of transition complied with Ind AS 17 "Leases" to determine whether an arrangement contains a Lease on the basis of facts and circumstances existing at the date of transition to Ind AS.
ix) Business Combination
In terms of Ind AS 101 "First Time Adoption of Indian Accounting Standards", the Company has elected to not to apply Ind AS 103 "Business Combination" for past combinations.
c) Explanatory Notes to reconciliation between Previous GAAP and Ind AS (i) Property, Plant and Equipment
The company has used previous GAAP carrying value as deemed cost excepting fair value of certain Property, Plant and Equipment (PPE) ie. freehold land as carried out by an external valuer in its opening Ind AS financial statement as deemed cost.
i) the aggregate of those fair values is Rs. 32,145.82 lakhs.
ii) the aggregate adjustment to the carrying amount of land reported under previous GAAP is Rs.32,1 24.84 lakhs.
The fair value of PPE has been determined based on the valuation carried out by External Independent Valuer. The fair value of the properties was determined based on market value of similar assets, significantly adjusted for differences in the nature, location or condition of the specific items of PPE. The fair valuation involves higher degree of uncertainty and subjectivity."
(ii) Fair Valuation of financial assets and liabilities
Under previous GAAP, receivables and payables were measured at transaction cost less allowances for recoverability, if any.
Under Ind AS, financial assets and liabilities are initially recognised at fair value and subsequently measured at amortised cost using the effective interest rate method, less allowances for impairment, if any. The resulting changes are recognised either under finance income or expenses in the Statement of profit and loss.
On transition, the company has fair valued certain financial assets including Security deposits. This has resulted in decrease in total equity by Rs. 0.13 lakhs and Rs. nil lakhs as on March 31, 2017 and April 1, 2016 respectively.
(iii) Investment in Equity Instruments
Under previous GAAP, Non-current Investments were stated at cost less provision, if any, for diminuation in value other than temporary.
Under Ind AS, the Company has made an irrevocable decision to consider equity instruments not held for trading to be recognized at FVTOCI.
On transition, the Company has recognized a loss of Rs. 1,847.04 lakhs as on March 31, 2017 and Rs. 1,944.81 lakhs as on April 1, 2016 in OCI with the corresponding decrease in the carrying value of such investments.
(iv) Fair valuation of Current Investment
Under previous GAAP, Current investments were measured at lower of cost or market price.
Under Ind AS, these investment are measured at fair value through profit or loss and accordingly, difference between the fair value and carrying value is recognised in Statement of profit or loss.
On transition, the Company has recognised a gain of Rs. 53.43 lakhs as on March 31, 2017 and Rs. nil lakhs as on April 1, 2016 in respect of mutual funds with corresponding increase in total equity.
(v) Borrowings
Under previous GAAP, transaction costs incurred in connection with borrowings are accounted upfront and charged to Statement of profit and loss in the year in which such costs were incurred.
Under Ind AS, Finance Liabilities consisting of Long Term Borrowings are to be fair valued and designated and measured at amortised cost based on Effective Interest Rate (EIR) method. The transaction costs so incurred are required to be deducted from the carrying amount of borrowings on initial recognition. These costs are recognized in Statement of profit and loss over the tenure of the borrowing as part of the interest expense by applying EIR.
On transition, the Company did not have any unamortised portion of oustanding borrowings. (vi) Taxation
Deferred tax has been recognized in respect of on accounting differences between previous GAAP and Ind AS. Moreover, carryforward of unused tax credits are to be treated as deffered tax assets which was earlier considered as Other non-current non-financial assets.
These adjustments have resulted increase in deferred tax liability and decrease in equity by Rs. 7,432.16 lakhs and Rs. 7,430.85 lakhs as on March 31, 2017 and April 1, 2016 respectively.
(vii) Remeasurement of Defined Benefit Plan
Under previous GAAP and Ind AS, the Company recognizes cost related to its post-employment defined benefit plan on an actuarial basis. Under previous GAAP, the entire cost, including re-measurement, are charged to Statement of profit and loss.
Under Ind AS, the actuarial gain and losses from part of remeasurements net defined benefit liability/asset which is recognised in OCI. Consequently, the tax effect on the same has also been recognised in OCI instead of statement of profit and loss.
Under Ind AS, the entity is permitted to transfer amounts recognized in the Other Comprehensive Income within equity. The Company has taken recourse of the said provision and has transferred all re-measurement costs recognized relating prior to the transition date from Retained earnings as on the date of transition as permitted under Ind AS.
On transition, this has resulted in reclassification of re-measurement losses on defined benefit plans of Rs. 18.72 lakhs for the year ended March 31, 2017 from Statement of profit and loss to OCI.
(viii) Fair Value measurements for biological assets other than bearer plants
Under previous GAAP, biological assets were not required to be recognised. Under Ind AS, these have been recognised at fair value less costs to sell and change in fair value has been recognised in profit or loss.
(ix) Previous GAAP figures have been reclassifed/regrouped wherever necessary to confirm with financial statements prepared under Ind AS.
44. FAIR VALUE MEASUREMENTS FOR BIOLOGICAL ASSETS OTHER THAN BEARER PLANTS
The following table gives the information about how the fair value of the biological assets were determined:
|
|
(Rs. n lakhs) |
||||
|
Biological Asset |
As at 31-Mar-18 |
As at 31-Mar-17 |
As at April 1, 2016 |
Fair value hierarchy |
Valuation techniques and key inputs |
|
Unharvested clonal plants |
27.72 |
32.16 |
55.09 |
Level 2 |
Fair value is being arrived at based on the observable market prices of clonal plants. The same is applied on the quantity of the clonal plants unharvested using average plucking in various fields. |
45. The financial risk associated to agriculture would include climate change, price fluctuation and input cost increases. Being dependent on rainfall, any shortfall would directly impact the production. The sale of clonal plants largely through the farmer system, any price fluctuation would impact profitability. Increased wages also has a direct impact on the cost of production because of labour intensive nature of the business operations.
Management is continuously monitoring all the above factors. Investment in irrigation, a planned replanting programme to ensure higher yields and improving efficiency of labour and modernisation are some of the measures taken by the management to mitigate the risks.
46. Figures have been given in Rupee lakhs and have been rounded off to two decimal places.
47. Previous year''s figures have been regrouped/reclassified to confirm with current year presentation wherever considered necessary.
|
As per our report of even date For Jain Pramod Jain & Co. |
On behalf of the Board |
|||
|
Chartered Accountants |
||||
|
(P.K. Jain) |
||||
|
Partner |
G.P. Goenka |
Shiromani Sharma |
||
|
Executive Chairman |
M.P. Pinto |
|||
|
Shrivardhan Goenka |
||||
|
Place: Kolkata |
Saurabh Arora |
P.K. Agrawal |
Madhukar Mishra |
Savita L.. Acharya (Ms) |
|
Date: 21st May, 2018 |
Company Secretary |
Chief Financial Officer |
Managing Director |
Directors |
Mar 31, 2016
1 The Company has two class of equity share having a par value of Rs. 10/- each. Each holder of both class of equity shares is entitled to one vote per equity share. In the event of liquidation, the equity shareholder of both the class are eligible to receive the remaining asset of the company after distribution of all preferential amounts, in the proportion of their shareholdings.
2. There is no movement in the number of share outstanding at the beginning and at the end of the year.
3 Deferred Tax Asset on account of timing differences with respect to depreciation has been considered and recognized in the accounts. As a matter of prudence, the amount of unabsorbed business losses has been ignored.
4. Working Capital facility from Banks are secured by way of Hypothecation of Stocks of finished goods, raw materials, chemicals, stores, other materials including those in transit, book debts both present and future and the charge on fixed assets of the company, ranking pari-passu in favour of the banks
5. There is no Micro, Small and Medium Enterprises to whom the company owes any amount which are outstanding for more than 45 days as at 31st March 2016. This information as required to be disclosed under 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.
6. The figure does not include any amounts, due and outstanding, to be credited to Investor Education and Protection Fund.
7. The company had filed review petition before The Honâble High Court of Allahabad pertaining to levy of Mandi Fees on goods procured in earlier years. Pending decision of the said petition, Rs.591.60 Lakhs (including interest amounting to Rs.361.60 lakhs), out of which Rs. 557.18 Lakhs already paid, has been included in other expenses in the financial statements.
8. Gross block and Net block of Buildings include flat acquired under joint ownership with others at New Delhi amounting Rs 55.30 Lakhs and Rs 21.13 Lakhs .(Previous year Rs.55.30 Lakhs and Rs 26.45 Lakhs) respectively.
9. During previous the year, depreciation had been provided based on the life of the assets as per Schedule II of the Companies Act, 2013 which had become effective from 1st April, 2014. In term of said schedule, the carrying amount of the asset existing as on 1st April 2014 has been depreciated over the remaining life of the assets. Consequent upon the application of schedule II as above, Where the remaining life of the assets had exhausted as on 1st April 2014, the carrying amount of Rs.75.05 Lakhs (net of deferred tax of Rs.33.56 Lakhs) had been adjusted against general reserve.
10. Market quotation in respect of Non-traded shares are not available since long, therefore the market value of these investments has not been stated.
11 Keeping in view of the provisions of Accounting Standard on Investments (AS-13) , the company âs investment in ISG Traders Ltd has been evaluated based on the valuation carried out by an independent firm of Chartered Accountants and based on such valuation no change in the provision for diminution is required.
12 In view of the management , the company is expected to pay normal tax within the credit entitlement period and thereby no adjustment in this respect has been considered necessary.
13. Security deposits include Rs. 35.00 lakhs (previous year Rs. 35.00 lakhs) with a compnay in which directors are interested as a member / director.
14 Fixed Deposit lodged with banks against Bank Guarantees issued by them.
15 Against employee security deposits.
16. Includes excess remuneration in respect of earlier years written back amounting to Rs. 21.57 Lakhs (Previous Year Rs. Nil) on non-receipt of necessary approval from Central Government in respect.
17 The Board approved payment of commission of Rs. 82.50 Lakhs for the financial year 2015-16 to Executive director in terms of his appointment which is subject to the approval of the Central Government in view of inadequacy of profit which has not been recognized in the financial statements. The same will be recognized on receipt of necessary approval of the Central Government.
18. During the year , the company has incurred Rs. 78.34 Lakhs (previous year Rs. 87.15 Lakhs ) on account of research and development expenses which has been charged to Statement of Profit and Loss.
19. The Company has operating lease arrangement for office accommodation with tenure extending up to 9 yrs. Term of lease arrangement include escalation clause for rent on expiry of 36 months from the commencement date of such lease and deposit / refund of security deposit etc. Expenditure incurred on account of rent during the year and recognized in the Statement of Profit and Loss account amounts to Rs. 40.50 lakhs (previous year Rs.37.89 lakhs).
20. The Companyâs pending litigations comprises of claim against the Company and proceedings pending with tax/ statutory/Government Authorities. The Company has reviewed all its pending litigation and proceedings and has made adequate provisions, and disclosed the contingent liabilities, wherever applicable, in its financial statements. The Company does not expect the outcome of these proceedings to have a material impact on its financial position. Future cash outflows in respect of above are determinable only on receipt of judgment/ decisions pending with various forums/ authorities.
21. Commitments
Estimated amount of contracts remaining to be executed on capital account (net of advances) Rs. 13.47 Lakhs (Previous year Rs. 91.72 Lakhs).
22. Foreign currency exposure outstanding as on 31.3.2016 which has not been hedged Rs. Nil (Previous year Rs. Nil )
Defined benefit scheme
i) The employees gratuity fund scheme is defined benefit plan. The present value of obligation is determined based on actuarial valuation using the projected unit credit method, which recognizes each year of service as giving rise to additional unit of employee benefit entitlement and measures each unit separately to build up the final obligation. The obligation for pension and leave encashment is recognized in the same manner as gratuity.
Note: (i) Assumptions related to future salary increases, attrition, interest rate for discount and overall expected rate of return on Assets have been considered based on relevant economic factors such as inflation, market growth and other factors applicable to the year over which the obligation is expected to be settled.
(ii) The Company expects to contribute Rs. 100 Lakhs ( Previous Year Rs. 55.00 Lakhs) to Gratuity fund in 2016-17.
Note:
(a) In respect of the above parties, there is no provision for doubtful debts as on 31.3.2016 and no amount has been written off or written back during the year in respect of debts due from/to them.
b) The above related party information is as identified by the management and relied upon by the auditors.
23. The company is engaged primarily in the business of âPaperâ and all other activities are incidental thereto. Further, the company sells primarily in the domestic market where its operations are governed by the same set of risks and returns and the overseas sales are insignificant. Accordingly the separate primary and secondary segment reporting disclosure as envisaged in Accounting Standards (AS-17) on Segment Reporting is not applicable to the company.
24. Figures have been given in Rupees Lakhs and have been rounded off to two decimal places.
25. Previous year figures have been regrouped/ reclassified to confirm with current year presentation, wherever considered necessary
Mar 31, 2015
1.1 In view of the inadequacy of profit, excess remuneration, being
the remuneration already approved by the shareholders, of Rs. 21.57
Lacs payable to managerial personnel for an earlier year is subject to
approval of Central Government.Necessary steps have been taken to
obtain the approval in this regard.
2.1 During the year , the company has incurred Rs. 87.15 Lakhs
(previous year Rs. 81.23 Lakhs ) on account of research and development
expenses which has been charged to statement of Profit and loss.
3.1 The Company's pending litigations comprise of claim against the
Company and proceedings pending with tax/ statutory/Government
Authorities. The Company has reviewed all its pending litigation and
proceedings and has made adequate provisions, and disclosed the
contingent liabilities, wherever applicable, in its financial
statements. The Company does not expect the outcome of these
proceedings to have a material impact on its financial position.
Future cash outflows in respect of above are determinable only on
receipt of judgment/ decisions pending with various forums/
authorities.
3.2 Commitments
Estimated amount of contracts remaining to be executed on capital
account (net of advances) Rs. 91.72 Lacs (Previous year Rs. 17.24
Lacs).
4. Foreign currency exposure outstanding as on 31.3.2015 which has
not been hedged Rs. 00.00 Lacs (Previous year Rs. 61.05Lacs)
5. Related Party disclosures as identified by the management in
accordance with the Accounting Standard 18:
(a) Key Management Personnel and their relatives
Mr. G. P. Goenka (Chairman)
Mr. S. V. Goenka (Director and son of Chairman)
Mr. M. Mishra (Managing Director)
Mrs. M. Mishra (Wife of Managing Director)
(b) Associates/Group Companies: ISG Traders Limited
6. The company is engaged primarily in the business of "Paper" and
all other activities are incidental thereto. Further, the company sells
primarily in the domestic market where its operations are governed by
the same set of risks and returns and the overseas sales are
insignificant. Accordingly the separate primary and secondary segment
reporting disclosure as envisaged in Accounting Standards (AS-17) on
Segment Reporting is not applicable to the company.
7. Figures have been given in Rupees Lacs and have been rounded off
to the nearest thousand.
8. Previous year figures have been regrouped/ reclassified to confirm
with current year presentation, wherever considered necessary.
Mar 31, 2014
1. SHARE CAPITAL
a. The Company has two class of equity share having a par value of Rs.
10/- each. Each holder of both class of equity shares is entitled to
one vote per equity share. In the event of liquidation, the equity
shareholder of both the class are eligible to receive the remaining
asset of the company after distribution of all preferential amounts, in
the proportion of their shareholdings.
b. There is no movement in the number of share outstanding at the
beginning and at the end of the year.
2. SHORT TERM BORROWING
a. Working Capital facility from Banks are secured by way of
Hypothecation of Stocks of finished goods, raw materials, chemicals,
stores, other materials including those in transit, book debts both
present and future and the charge on fixed assets of the company,
ranking pari-passu in favour of the banks.
3. TREAD PAYBLES
a.There is no Micro, Small and Medium Enterprises to whom the company
owes any amount which are outstanding for more than 45 days as at 31st
March 2014. This information as required to be disclosed under 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.
4. OTHER CURRENT LIABILITIES
* The figure does not include any amounts, due and outstanding, to be
credited to Investor Education and Protection Fund.
5. FIXED ASSEST
a. Gross block and Net block of Buildings include flat acquired under
joint ownership with other at New Delhi amounting Rs. 55.30 Lacs and
Rs. 33.11 Lacs.(Previous period Rs. 55.30 Lacs and Rs. 34.85 Lacs)
respectively.
6. INVESTMENT
a. Market quotation in respect of Non-traded shares are not available
since long, therefore the market value of these investments has not
been stated.
b. Keeping in view of the provisions of Accounting Standard on
Investments (AS-13) , the company ''s investment in ISG Traders Ltd has
been evaluated based on the valuation carried out by an independent
firm of Chartered Accountants and diminution in value thereof has been
recognised in this year and shown as exceptional items in the statement
of profit and loss.
7. LONG TERM LOANS AND ADVANCES
a.In view of the management , the company is expected to pay normal tax
within the credit entitlement period and thereby no adjustment in this
respect has been considered necessary.
8. CASH AND BANK BALANCES
a. Fixed Deposit lodged with banks against Bank Guarantees issued.
b. Against employee security deposits.
9. EMPLOYEESBENEETTS EXPENSES
a. In view of the inadequacy of profit, excess remuneration, being the
remuneration already approved by the shareholders, of Rs. 64.51 Lakhs
payable to managerial personnel for earlier years is subject to
approval of Central Government. The company is in the process of
seeking necessary approval.
10. AUDITORS REMUNERATION (Included in Miscellaneous Expenses)
a. During the year, the company has incurred Rs 81.23 Lakhs (previous
year Rs 85.40Lakhs) on account of research and development expenses
which has been charged to Statement of Profit and Loss.
11. CONTINGENT LIABILITIES (Rs. in Lacs)
For the Year ended For the Year ended
31st March 2014 31st March 2013
A. In respect of Various
demands raised, which in
the opinion of the mana-
gement are not tenable
and are under appeal at
various stages.
1. Sales Tax including
Trade Tax 641.67 663.56
2. Mandi Fee * 230.00 176.00
3. Excise Duty 35.11 35.11
4. Electric Duty 2.70 2.70
5. Employees State
Insurances Corp. 4.90 4.90
(On Good Work Bonus)
6. Sales Tax on Royalty 69.10 69.10
7. Liability for entry
tax on Paper and Fuel 163.27 182.69
8 Demand in respect of
Railway Plot Rent 201.14 201.14
B. Workers Claims 64.01 64.13
*Company''s Special Leave petition (SLP) against the order of Hon''ble
High Court of Allahabad pertaining to goods procured in earlier years
has been admitted by Hon''ble Supreme Court. Pending final decision on
the matter, the amount demanded excluding interest thereon has been
included as above and Rs 92.47 Lakhs paid in this respect has been
shown under long term loan and advances.
* Future cash out flow in respect of A and B is dependent upon the
outcome ofjudgments/decisions
12. Foreign currency exposure outstanding as on 31.3.2014 which has not
been hedged Rs 61.05 Lakhs (Previous year Rs 172.24 Lakhs).
13. Defined benefit scheme
a. Assumptions related to future salary increases, attrition, interest
rate for discount and overall expected rate of return on Assets have
been considered based on relevant economic factors such as inflation,
market growth and other factors applicable to the year over which the
obligation is expected to be settled.
14. RELATED PARTY DISCLOSUERS AS IDENTIFIED BY THE MANAGEMENT IN
ACCORDANCE WITH THE ACCOUTING STANDARD 18:
(a) Key Management Personnel and their relatives
Mr. G. P. Goenka (Chairman)
Mr. S. V. Goenka (Director and son of Chairman)
Mr. M. Mishra (Managing Director)
Mrs. M. Mishra (Wife of Managing Director)
15. The company is engaged primarily in the business of "Paper" and all
other activities are incidental thereto. Further, the company sells
primarily in the domestic market where its operations are governed by
the same set of risks and returns and the overseas sales are
insignificant. Accordingly the separate primary and secondary segment
reporting disclosure as envisaged in Accounting Standards (AS-17) on
Segment Reporting is not applicable to the company.
16. Figures have been given in Rupees Lakhs and have been rounded off
to the nearest thousand.
17. Previous year figures have been regrouped/reclassified to confirm
with current year presentation, wherever considered necessary.
Mar 31, 2013
1. CONTINGENT LIABILITIES (Rs. in Lacs)
31 st March 2013 31 st March 2012
A. In respect of Various
demands raised.which
in the opinion of the
management are not tenable
and are under appeal at
various stages:
1. Sales Tax including
Trade Tax 663.56 551.26
2. Market Fee 176.00 176.00
3. Excise Duty 35.11 40.93
4. Electric Duty 2.70 2.70
5. Employees State
Insurance Corp. 4.90 4.90
( On Good Work Bonus)
6. Sales Tax on Royalty 69.10 69.10
7. Liability for entry
tax on fuel 182.69 169.83
8. Demand in respect of
Railway Plot Rent 201.14 201.14
B. Workers Claims 64.13 70.82
C. Income Tax - 370.99
Note: Future cash outflow in respect of A to C is dependent upon the
outcome of judgments/decisions
2. Foreign currency exposure outstanding as on 31.3.2013 which has
not been hedged Rs 172.24 Lacs (Previous year Rs 252.92 Lacs)
3. Related Party disclosures as identified by the management in
accordance with the Accounting Standard 18:
(a) Key Management Personnel and their relatives
Mr. G. R Goenka (Chairman)
Mr. S. V. Goenka (Director and son of Chairman)
Mr. M. Mishra (Managing Director)
Mrs. M. Mishra (Wife of Managing Director)
(b) Associates/Group Companies:
(i) With whom the Company had transactions
Duncans Industries Limited, NRC Limited, Kavita Marketing Private
Limited, ISG Traders Limited, Odyssey Travels Limited
(ii) Others
Andhra Cements Limited (erstwhile associate company), Albert Trading
Company Private Limited, Bargate Communications Private Limited,
Boydell Media Private Limited, Continuous Forms (Calcutta) Limited,
Dail Consultants Limited, Duncans Agra Chemicals Limited, Duncans Tea
Limited, North India Fertilisers Ltd., Duncans Tea House Pvt. Limited,
Gujarat Carbon and Industries Limited, Infratech Software Services
Private Limited, Julex Commercial Company Limited, Leyden Leasing and
Financial Services Limited, Marleybone Travels and Resorts Private
Limited, Stone Solar Private Limited, Octave Technologies Private
Limited, Orchard Holdings Private Limited, Pentonville Software
Limited, Santipara Tea Company Limited, Skylight Trading Company
Limited, Sprint Trading Company Limited, Silent Valley Investment
Company Limited, Subh Shanti Services Limited, Sewand Investments
Private Limited, Stone India Limited, Stone Intermodal Private Limited,
Unimers India Limited.
The parties listed in (ii) above, though are not required to be
disclosed as per the requirement of AS-18, have been included
here-in-above in view of the requirement of Clause 32 of the Listing
Agreement.
4. Estimated amount of contracts remaining to be executed on capital
account (net of advances) Rs. 2.11 Lacs (Previous year Rs. 0.04 Lac).
5. The company is engaged primarily in the business of" Paper" and
all other activities are incidental thereto. Further, the company sells
primarily in the domestic market where its operations are governed by
the same set of risks and returns and the overseas sales are
insignificant. Accordingly the separate primary and secondary segment
reporting disclosure as envisaged in Accounting Standards (AS-17) on
Segment Reporting is not applicable to the company.
6. Figures have been given in Rupees Lacs and have been rounded off
to the nearest thousand.
7. Previous year figures have been re-grouped/re-classified to
confirm with current year presentation, wherever considered necessary
Mar 31, 2012
A) The company has investments in ISG Traders Ltd. (ISG) and ISG has'
in turn' investments which from part of group's controlling interest in
several companies. In addition' ISG has other investments in other
classes of assets. Considering the fact that the company's investments
in ISG is of long term in nature' revenue recognition with respect to
diminution' if any' in the value of investments in ISG has not been
considered necessary.
a) In view of the inadequacy of profit' excess remuneration of Rs.
64.51 lacs (including Rs. 44.90 lacs for current year) of Whole-time
Director and Managing Director is subject to approval of Central
Government under clause C of Section II of Part II of Schedule XIII of
Companies Act 1956. The remuneration payable to them is the minimum
remuneration' approved by the shareholders in the event of absence or
inadequacy of profits. Application for Central Government approval has
already been made.
Note : Assumptions related to future salary increases' attrition'
interest rate for discount and overall expected rate of return on
Assets have been considered based on relevant economic factors such as
inflation' market growth and other factors applicable to the year over
which the obligation is expected to be settled.
b) Salary/Wages Rs. 35.50 Lacs (Previous year Rs. 38.15 Lacs) Provident
Fund and Employee State Insurance Rs. 1.97 Lacs (Previous year Rs. 1.93
Lacs)' Stores & components and repairs Rs 196.34 Lacs (Previous year
Rs. 351.35 Lacs)' Rent Rs. 3.15 Lacs (Previous year 4.83 Lacs)' and
Insurance Rs. 0.05 Lacs (Previous year Rs. 55 Lacs) have been
classified functionally under other heads of accounts.
1. Foreign currency exposure outstanding as on 31.03.2012 which has
not been hedged Rs. 252.92 Lacs (Previous year Rs. 150.94 Lacs)
2. Related Party disclosures as identified by the management in
accordance with the Accounting Standard 18 :
(a) Key Management Personnel and their relatives
Mr. G. P. Goenka (Chairman)
Mr. Shrivardhan Goenka (Director & son of the Chairman)
Mr. M. Mishra (Managing Director)
Mrs. M. Mishra (Wife of Managing Director)
(b) Associates/Group Companies :
(i) With whom the Company had transactions
Duncans Industries Limited' Duncans Tea Limited' Gujarat Carbon and
Industries Limited' NRC Limited' Andhra Cements Limited (erstwhile
associate company)' Silent Valley Investment Company Limited' Kavita
Marketing Private Limited' ISG Traders Limited' Subh Shanti Services
Limited' Sewand Investments Private Limited. Stone India Limited'
Odyssey Travels Limited' Unimers India Limited
(ii) Others
Albert Trading Company Private Limited' Bargate Communications Private
Limited' Boydell Media Private Limited' Continuous Forms (Calcutta)
Limited' Dail Consultants Limited' Duncans Agro Chemicals Limited'
North India Fertilisers Ltd.' Duncans Tea House Pvt. Limited' Infratech
Software Services Private Limited' Julex Commercial Company Limited'
Leyden Leasing and Financial Services Limited' Marleybone Travels and
Resorts Private Limited' Stone Solar Private Limited' Octave
Technologies Private Limited' Orchard Holdings Private Limited'
Pentonville Software Limited' Santipara Tea Company Limited' Skylight
Trading Company Limited' Sprint Trading Company Limited. Stone
Intermodal Private Limited
Note : (a) In respect of the above parties' there is no provision for
doubtful debts as on 31.03.2012 and no amount has been written off or
written back during the year in respect of debts due from/to them.
(b) The above related party information is as identified by the
management and relied upon by the auditors
3. Disclosure required vide clause 32 of the listing agreement
(a) Amount of loans/advances in the nature of loans outstanding from
Associate/Group companies as at the year' ended 31st March 2012
Notes on Financial statements for the year ended 31st March' 2012
(Rs. in Lacs)
4. Contingent Liabilities 31.03.2012 31.03.2011
A In respect of various demands raised which
in the opinion of the management are not
tenable and are under appeal at various
stages :
1. Sales Tax including Trade Tax 551.26 556.68
2. Entry Tax 237.50 -
3. Market Fee 176.00 -
4. Excise Duty 40.93 7.22
5. Electric Duty 2.70 2.70
6. Employees State Insurances Corp. 4.90 4.90
(On Good Work Bonus)
7. Sales Tax on Royalty 69.10 -
8. Liability for entry tax on fuel 169.83 -
9 Liability in respect of Railway Plot Rent 201.14 -
B Workers Claims 70.82 71.22
C Income Tax 370.99 -
5. Estimated amount of contracts remaining to be executed on capital
account (net of advances) Rs. 0.04 Lacs (Previous year Rs. 26.07 Lacs).
6. The company is engaged primarily in the business of "Paper" and
all other activities are incidental thereto. Further' the company sells
primarily in the domestic market where its operations are governed by
the same set of risks and returns and the overseas sales are
insignificant. Accordingly the seperate primary and secondary segment
reporting disclosure as envisaged in Accounting Standards (AS-17) on
Segment Reporting is not applicable to the company.
7. Figures have been given in Rupees Lacs and have been rounded off
to the nearest thousand.
8. Previous year figures have been regrouped / reclassified to
confirm with current year presentation' whenever considered necessary
Mar 31, 2011
1) Estimated amount of contracts remaining to be executed on capital
account (net of advances) Rs.26.07 lakhs
(Previous year Rs. 77.36 Inkhs).
2) Continent Liabilities
SI. Particulars 31st March 2011 31st March 2010
No (Rs.In Lakhs) (Rs.In Lakhs)
A In respect of various
demands raiwd.which in
the opinion of the
management are not
tenable and are under
appeal at various stages
i Sales Tax including 556.68 185.65
-Trude Tax
ii Entry Tax 237.50 108.58
iii Excise Duty 7.22 -
iv Electricity Duty 2,70 2.70
v Employee* State insurance 4.90 4.90
Corporation (On Good
work bonus)
vi Claim* against the company - 173,07
not acknowledge as
debts:Interest on Mandi Fee
which is sub judice - to the
extent ascertainable
B Workmen Claims 71.22 65.30
Note; Future cash muflnivs in roped of A tuHisifppenrtVnl ujHûn the
outcome of jurlurmentsAleeisions
3) Capital work-in-progress includes machinery in stock, construction /
erection of material, advances for construction/erection works and
machinery etc
4) The company has investments in ISG Traders Ltd, (ISG) and ISG has,
in turn, investments which form part of groups controlling interest in
several companies. In addition, ISG has investment in preference
shares as well as other classes of assets. Considering ihe fact the
company's investments in ISG is of long term in nature, revenue
recognition with respect to diminution, if any, in the value of
investments in ISG has not been made.
5) The company is in the process of compiling information with regard
to suppliers covered under Micro, Small and Medium Enterprise
Development Act. 2006. To the extent classified, none of the suppliers
fall under Micro, Small or Medium enterprises under the Act.
Accordingly. no disclosure as required under Section 22 of the said Act
has heen given in these accounts.
6) Foreign currency exposure outstanding as on 31.03.2011 which has not
been hedged Rs. 150.94 lakhs. (Previous yearRs.321.11 lakhs).
7) Related Party disclosures as identified by the management in
accordance with the Accounting Standard 18:
(a) Key Management Personnel and their relatives
Mr. C. R Goenka (Chairman and Whole Time Director)
Mr. S. V. Goenka (Director and son of Whole Time Director)
Mr M.Mishra (Managing Director)
Mrs. M. Mishra (Wife of Managing Director)
(b) Associates/Group Companies:
(i) With whom the Company had transactions
Duncans Industries Limited. Duncans Tea Limited. Gujarat Carbon and
Industries Limited, NRC Limited. Andhra Cements Limited, Silent Valley
Investment Company Limited. Kavita Marketing Private Limited. ISC
Traders Limited, Subh Shanti Services Limited, Sewand Investments
Private Limited. Stone India Limited. Odyssey Travels Limited, Unimers
India Limited
(ii) Others
Albert Trading Company Private Limited, Bargate Communication Private
Limited, Boydell Media Private Limited, Continuous Forms (Calcutta)
Limited, Dail Consultant Limited. Duncans Agro Chemicals Limited, North
India Fertilisers Ltd., Duncans Tea House Pvt. Limited, Infratech
Software Services private Limited, Julex Commercial Company Limited,
Leydon Leasing and Financial Services Limited, Marleyhone Travels and
Resorts Private Limited. Stone Solar Private Limited, Octave
Technologies Private Limited, Orchard Holdings Private Limited,
Pentonville Software Limited, Santipara Tea Company Limited, Skylight
Trading Company Limited, Sprint Trading Company Limited, Stone
intermodal Private Limited.
8) c) in veiw of the inadequency of profit,excess remiuneration of
Rs.62.34(including Rs.56.83 Lakhs for current year) of whole Time
Director and managing director is subject to approval of the
shareholders and central Government under clase C of section II of part
II of Schedule XIII of companies'Act 1956.
9) Empolyee Benefits The diclosures required under Accounting Standard
15"Employee benefits"notified in the Companies (Accounting Standards)
Rules 2006,are given below:
I. Defined contribution Scheme Contribution to defined Contribution
Plan,recognised for the year are as under: Employee's Contribution to
provident Fund Rs.134.97 lakhs(previous year 129.63 lakhs)
10) The company is engaged primarily in the business of "paper" and all
other activities are incidental thereto. Further, the company sells
primarily in the domestic market where its operations are governed by
the same set of risks and returns and the over seas sales are
insignificant. Accordingly the separate primary and secondary segment
reporting disclosure as envisaged in Accounting Standards (AS-17) on
Segment Reporting is not applicable to the company
11) Salary/wages Rs.38.15 lakhs (Previous year Rs.32.25 lakhs)
Provident Fund and Employee State Insurance Rs. 1.93lakhs (Previous
year Rs.0,96 lakhs), Stores & Components and Repairs Rs.0.55 Lakhs
(Previous year Rs.285.155 lakhs), Rent Rs I.Hi Lakhs (Previous year 534
lakhs), ami Insurance Rs 0.S5 lakhs (Previous psw Rs.0.62 lakhs) have
been classified functionally under other heads of accounts.
12) Miscellaneous income includes "Sale of clonal Plants ",Rs. 49.57
lakhs (Previous years - Rs :43.55 lakhs),
13)Additional information pursaunt to the provisions of paragraph,3,4
(c) and 4(d) of Part II of Schedule -VI of the Companies Act ,1956:-
14) Figures have been given in Rupees lakhs and have been rounded off
to the nearest thousand.
15) Previous year's figures have been regrouped / rearranged whereever
necessary.
Mar 31, 2010
1. Estimated amount of contracts remaining to be executed on capital
account (net of advances) Rs. 77.36 lakhs (Previous year Rs.33.57
lakhs).
2. Contingent Liabilities
Year Ended Period Ended
S.No. Particulars 31st March 31st March
2010 2009
A In respect of various
demands raised, which in the
opinion of the management
are not tenable and are
under appeal at various stages
i Sales Tax 185.65 6.81
ii Entry Tax 108.58 -
iii Electricity Duty 2.70 2.70
iv Employees State Insurance
Corporation (On good
work bonus) 4.90 4.90
v Claims against the company not
acknowledged as debts:
Interest on Mandi Fee which is
sub judice- to the extent
ascertainable 173.07 161.68
B Workmen Claims 65.30 64.02
Note: Future cash outflows in respect of A to B is dependent upon the
outcome of judgements/decisions
3. Capital work-in-progress includes machinery in stock,
construction/erection of material, advances for construction/erection
works and machinery etc.
4. The High Court at Kolkata vide its order dated 11th September 2009
has approved the scheme for merger of the wholly owned subsidiary
company viz., Pallmall Edusystems and Medicare Services Private Limited
(PEMSPL) into ISG Traders Ltd ISG), a group company with effect from
01.04.2008. Accordingly the Company has received equity shares of ISG
in lieu of Investments in PEMSPL.
5. The Company is in the process of finalizing its wage agreement.
Estimated provisions in these respect have been made during the past
two years including in respect of long term benefits.
6. The company is in the process of compiling information with regard
to suppliers covered under Micro, Small and Medium Enterprise
Development Act, 2006. To the extent classified, none of the suppliers
fall under Micro, Small or Medium enterprises under the Act.
Accordingly, no disclosure as required under Section 22 of the said Act
has been given in these accounts.
7. Foreign currency exposure outstanding as on 3 1.03.2010 which has
not been hedged Rs. 321.11 lakhs (previous period Rs. 26.86 lakhs).
8. Related Party disclosures as identified by the management in
accordance with the Accounting Standard 18:
(a) Key Management Personnel and their relatives
Mr. G. R Goenka (Chairman and Whole Time Director)
Mr. S. V. Goenka (Director and son of Whole Time Director)
Mr. M. Mishra (Managing Director)
Mrs. M. Mishra (Wife of Managing Director)
(b) Subsidiary Company
Pallmall Edusystems and Medicare Services Private Limited (merged with
ISG Traders Limited effect from 01.04.2008)
(c) Associates/Group Companies:
(I) With whom the Company had transactions
Duncans Industries Limited, Duncans lea Limited, Gujarat Carbon and
Industries Limited, NRC Limited, Andhra Cements Limited, Silent Valley
Investment Company Limited, Kavita Marketing Private Limited, ISG
Traders Limited, Subh Shanti Services Limited, Sewand Investments
Private Limited, Stone India Limited, Odyssey Travels Limited, Unimers
India Limited
(ii) Others
Albert Trading Company Private Limited, Bargate Communications Private
Limited, Boydell Media Private Limited, Continuous Forms (Calcutta)
Limited, Dail Consultants Limited, Duncans Agro Chemicals Limited,
North India Fertilisers Ltd., Duncans Tea House Pvt. Limited, Halcyon
Properties Limited, Infratech Software Services Private Limited, Julex
Commercial Company Limited, Leyden Leasing and Financial Services
Limited, Maharastra Polybutenes Limited, Marleybone Travels and Resorts
Private Limited, Napier Softech Private Limited, National Standard
India Limited, Octave Technologies Private Limited, Orchard Holdings
Private Limited, Oxides and Specialities Limited, Portland Holding
Private Limited, Pentonville Software Limited, Santipara Tea Company
Limited, Skylight Trading Company Limited, Sprint Trading Company
Limited.
The parties listed in (ii) above, though are not required to be
disclosed as per the requirement of AS-18, have been included here in
above in view of the requirement of Clause 32 of the Listing Agreement.
9. Employee Benefits
The disclosures required under Accounting Standard 15" Employee
Benefits" notified in the Companies (Accounting Standards) Rules 2006,
are given below:
Defined Contribution Scheme
Contribution to Defined Contribution Plan, recognized for the period
are as under:
Employers Contribution to Provident Fund Rs. 129.63 lakhs (Previous
period Rs 186.55 lakhs)
Defined Benefit Scheme
The employees gratuity fund scheme is a defined benefit plan. The
present value of obligation is determined based on actuarial valuation
using the Projected Unit Credit Method, which recognizes each period of
service as giving rise to additional unit of employee benefit
entitlement and measures each unit separately to build up the final
obligation. The obligation for pension and leave encashment is
recognized in the same manner as gratuity.
10. The company is engaged primarily in the business of "Paper" and
all other activities are incidental thereto. Further, the company sells
primarily in the domestic market where its operations are governed by
the same set of risks and returns and the overseas sales are
insignificant. Accordingly the separate primary and secondary segment
reporting disclosure as envisaged in Accounting Standards (AS-17) on
Segment Reporting is not applicable to the company.
11. Salary/wages Rs.32.25 lakhs (Previous period Rs.51.90 lakhs)
Provident Fund and Employee State Insurance Rs.0.96 lakhs (Previous
period Rs. 1.79 lakhs), Stores & components and repairs Rs 285.55 Lakhs
(Previous period Rs.416.77 lakhs), Rent Rs 5.34. Lakhs (Previous period
5.90 lakhs), and Insurance Rs 0.62 lakhs (Previous period Rs. 1. 10
lakhs) have been classified functionally under other heads of accounts.
12. Figures have been given in Rupees lakhs and have been rounded off
to the nearestthousand.
13. The figures of the current year relates to the period of twelve
months and are therefore not comparable with the figures of the
previous period of Eighteen months. However, previous periods figures
have been regrouped /rearranged wherever necessary.
Signatures to schedule 1 to 17 forming part of Balance Sheet and
Profit&Loss account asperourreportofevendate.
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Stock Market Alert! Major Pre-Open Session Change From Dec 8: Full Timings, Rules & All You Need To Know -
Bank Nifty Surges: RBI’s 25 bps Rate Cut Triggers Strong Upside in Major Banking Stocks -
Closing Bell: Sensex Ends 158 pts Higher, Nifty Climbs Above 26,000; Hero MotoCorp, HAL Up 2% Each -
Stocks To Buy Today, Dec 4: Top 2 Picks By Riyank Arora of Mehta Equities For Profitable Trading On Thursday
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