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Notes to Accounts of Archidply Industries Ltd.

Mar 31, 2015

1. The Company has only one class of equity shares having a par value of 10 per share, Each Shareholder is eligible for one vote per share.

2. 65000 Equity shares of Rs. 10/- each alloted under ESOP Scheme in last Five years.

Term of repayment and nature of Security for long term secured borrowings :

i) Term Loan amounting of 39,840,000/- (March 31,2014: 53,120,000/-) is secured by first charge on all immovable properties of the Company present and future and hypothecation of Rudrapur Unit of all assets both present and future of unit and personal guarantee of promotor directors and repayable in 20 quarterly installments starting from June 2013 last installment due on March 2018.

ii) Term Loan amounting 74,46,368 (March 31,2014: Rs. 1,82,44,942/-) is secured by first charge on all immovable properties of Chintamani unit of the Company present and future and hypothecation of all assets both present and future of Chintamani unit and personal guarantee of promoter directors and repayable in 56 monthly installments starting from August 2012 last installment due on December 2015. Out of which NIL (P.Y Rs. 1,82,44,937/-) is in Foreign Currency.

iii) Term Loan amounting 4,00,01,620 (March 31,2014: Rs. 7,55,87,866/-) is secured by first charge on all immovable properties of Chintamani unit of the Company present and future and hypothecation of all assets both present and future of Chintamani unit and personal guarantee of promotor directors and repayable in 50 monthly installments starting from August 2012 last installment due on September 2016. Out of this NIL (P.Y- Rs. 7,55,67,556/-) is in Foreign Currency.

iv) Vehicle Loans are secured by hypothecation of vehicles purchased under the Hire Purchase Schemes.

v) Installments falling due in respect of all the above loans up to 31.3.2015 have been grouped under "Current maturities of Long Term Debt" (Refer note 7)

3. CONTINGENT LIABILITIES AND COMMITMENTS As at 31st As at31ST (TO THE EXTEND March March NOT PRoVIDED FoR) 2015 2014

1) Contingent Liabilities

A) On account of De merger of Plywood & Block Board and Particle & laminated board (both divisions) of The Mysore Chip Boards Limited in to the Company in the financial year 2007-08:

i) Various parties had filed a civil suit for recovery of dues/ damages against The Mysore Chip Boards Limited, which has been disputed by The Mysore Chip Boards Limited and had deposited an amount of 11,46,419/- (P.Y.11,46,419) with Hon'ble High Court of Gujarat. The said amount of Rs. 11,46,419/- (P.Y Rs. 11,46,419) 1,228,606 1,228,606

ii) The Company, for and on behalf of The Mysore Chip Boards Limited has given a guarantee towards a show cause notice issued by the Excise Department demanding a dues from The Mysore Chip Boards Limited. However The Mysore Chip Boards Limited had deposited an amount of 16,00,000/-( P.Y. 16,00,000/) with Central Excise Department. The Mysore Chip Boards Limited had filed an appeal & disputed the said demand and the demand has been reduced to Rs. 81,01,637/- (P.Y. Rs. 81,01,637/) and the penalty of the same amount by Commissioner of Central Excise, Mysore on 05/10/2006. The Mysore Chip Board Ltd has filed an appeal to Custom, Excise & Service Tax Appellate Tribunal, Bangalore and obtained a stay order against that demand. The tribunal has remanded back the case to the Commissioner of Central Excise for taking fresh decision after following the principles of natural justice. The Department has filed the appeal before the Honourable Supreme Court against the order of the Tribunal. 8,101,637 8,101,637

B) (i) The Company has received show cause notice issued by the Excise Department, Commissionate Meerut -II demanding Rs. 4,41,92,921/- for period from April 2006 to december 2010 ,Rs. 2,00,10,661/- for period from Jan 2011 to March 2012 , company has got stay order from Appallete Tribunal against these demand for production of resin at its rudrapur unit which company is using for its production. 64,203,582 64,203,582

(ii) The company has received demand notice for Rs 1,86,18,471/- for the period from April 2012 to December 2012 and same reason as mentioned in B(ii) above and the case is pending in Appellete Tribunal-Delhi 18,618,471 6,585,437

(iii) The company has received another demand of Rs. 39,57,322/-from the same authority for the period from January 2013 to February 2013 and the case is pending before commissioner Central Excise Appeal-I -Meerut. 3,957,322 -

C) The Deputy Commissioner of sales tax Rudrapur has demanded Rs. 4998317/- related to financial year 2007-08 and Rs. 136687/- related to financial year 2006-07 and interest on above amount till date. The Company has deposited Rs. 1157615/- and filed appeal with Joint Commissioner Appeal -I, Sales Tax Uttarchand against same demand. 5,135,004 5,135,004

D) The Company has filed appeal with the Tribunal against the order of the Commissioner for the availment and utilization of irregular cenvat credit taken on capital expenditure at Chintamani Unit amounting to Rs. 43,03,304/- for the financial year 2011-12. The Company has reversed the amount of Rs. 30,45,832/- and charged it to profit & losss account. The credit of an amount of Rs. 12,57,472 is under litigation. 1,257,472 1,257,472

E) The Company has imported plant and machinery under EPCG Scheme on which it has availed Duty benefit 13,727,264 25,863,067

F) Raw material under Advance Licence scheme and availed a duty benefit 2,404,688 -

G) The Company has undertaken Domestic factoring facility for its trade debtors from financial institutions. 80,320,292 89,647,078

H) Guarantees given by the bank on behalf of the Company 16,325,147 16,325,147

1) During the year Company has received notice from State of Uttarakhand for Mandi Tax levied on the purchase of materials outside the state. However Company has filed a writ petition in the Honorable High Court of Uttarakhand against the notice. As per calculation by company a Contingent liability of Rs.19,05,256/- is arising on account of this notice. 1,905,256 1,905,256

2) Commitments

i) Estimated amount of contracts remaining to be executed on Nil Nil capital account not provided for (net of advances)

ii) The Company, during the year has capitalized interest on loan Nil Nil (borrowing cost) amounting

4. CORPORATE SOCIAL RESPONSIBILITY (CSR) ACTIVITY

During the year, the company has spend 10,00,000/- towards corporate social responsibility (CSR) under Section 135 of the Companies Act, 2013 and rules thereon by way of contribution to Round Table Trust for promotion of Primary Education Infrastructure.

5. Segment Reporting: The Company has identified two segments viz a) Wood based product b) Paper based product, which have been identified in line with Accounting Standard 17 on segment reporting taking into account organizational structure as were as differential risk and return of these segments.

Details of the Products included in each segment are as under:

i) Wood based products: Plywood, Block Board, Veneers, Decorative plywood, Prelaminated Partical Boards.

ii) Paper based products: Laminated Sheets (HPL).

The segment information has been prepared in conformity with the Accounting Policies for preparing and presenting the financial statements of the Company.

Segment revenue and results includes manufacturing as well as trading activities for the same segment product. Segment current assets and liabilities are taken on the basis of the turnover of the segment.

The following table presents the information relating to profit, assets and liabilities of the business segment. (Primary Segment) of the Company.

6. Disclosure as per Accounting Standard 18 (AS-18) "Related Party Disclosures" Issued by the Institute of Chartered Accountants of India.

Associate Companies:

i) The Mysore Chip Boards Ltd

ii) Assam Timber Products Pvt Ltd

iii) Shree Shyam Tea Pvt Ltd

iv) Bordhumsa Tea Company Pvt Ltd

v) Vanraj suppliers Pvt Ltd

vi) Ravi Marketing Services Pvt Ltd

Key Management Personnel:

i) Mr. Deendayal Daga - Chairman

ii) Mr. Shyam Daga - Managing Director

iii) Mr. Rajiv Daga - Jt. Managing Director

Previous year's figures have been regrouped and re classified to facilitate the comparison with current year's figures wherever necessary.

7. CAPITALISATION OF HEDGING CHARGES

Hedging Charges of 35,79,838/- (PY 78,89,440/-) on foreign currency term loan has been capitalised with the cost of fixed asset as per the clause 46A of the Accounting Standard -11.

8. UNCLAIMED SHARES

In terms of Clause 5A of the Listing Agreement with the Stock Exchange, the Company has opened the demat suspense account and has transferred the 4425 unclaimed shares of public issue to "Archidply Industries Limited Unclaimed Shares Suspense Account." The Voting rights on these shares will remain frozen till the rightful owner claims the shares.

Opening Balance of the Shares in the demat account 4425

Closing Balance of the Shares in the demat account 4425




Mar 31, 2014

Note - 1

CONTINGENT LIABILITIES AND COMMITMENTS (TO THE EXTENT NOT PROVIDED FOR) As at As at 31st March, 2014 31st March, 2013

1. Contingent Liabilities : a) On account of Demerger of Plywood & Block Board and Particle & laminated board (both divisions) of The Mysore Chip Boards Limited in to the Company in the financial year 2007-08:

i) Various parties had filed a civil suit for recovery of dues/ damages against The Mysore Chip Boards Limited, which has been disputed by The Mysore Chip Boards Limited 1,228,606 1,228,606 and had deposited an amount of Rs. 11,46,419/- (P.Y. Rs. 11,46,419) with Hon''ble High Court of Gujarat. The said amount of Rs. 11,46,419/- (P.Y. Rs. 11,46,419)

ii) The Company, for and on behalf of The Mysore Chip Boards Limited has given a guarantee towards a show cause notice issued by the Excise Department demanding a dues from The Mysore Chip Boards Limited. However The Mysore Chip Boards Limited had deposited an amount of Rs. 16,00,000/- ( P.Y. Rs. 16,00,000/) with Central Excise Department. The Mysore Chip 8,101,637 8,101,637 Boards Limited had filed an appeal & disputed the said demand and the demand has been reduced to Rs.81,01,637/- (P.Y. Rs.81,01,637/) by Commissioner of Central Excise, Mysore on 05/10/2006. The Mysore Chip Board Ltd has filed an appeal to Custom, Excise & Service Tax Appellate Tribunal, Bangalore and obtained a stay order against that demand. The tribunal has remanded back the case to the Commissioner of Central Excise for taking fresh decision after following the principles of natural justice. The Department has filed the appeal before the Honourable Supreme Court against the order of the Tribunal.

b) The Company has received show cause notice issued by the Excise Department, Commissionate Meerut -II demanding Rs.4,41,92,921/- for period from April 2006 to december 2010 Rs.2,00,10,661/- for period from Jan 2011 to March 2012 70,789,019 64,203,582 and Rs.65,85,437/- for period from April 2012 to December 2012 for production of resin at its Rudrapur Unit which company is using for its own production. Final order dtd 29.03.2013 received from Excise Department, Commissionate Meerut -II confirming the demand . The Company has gone for appeal to the Tribunal.

Company has received stay order from the CESTAT on 21.04.2014 and directed to deposit Rs.1,05,00,000/- for further proceeding of the case.

c) The Deputy Commissioner of sales tax Rudrapur has demanded Rs. 4998317/- related to financial year 2007-08 and 5,135,004 5,135,004 Rs. 136687/- related to financial year 2006-07 and interest on above amount till date. The Company has deposited Rs. 1157615/- and filed appeal with Joint Commissioner Appeal -I, Sales Tax Uttrakhand against same demand.

d) The Company has filed appeal with 1,257,472 1,257,472 the Tribunal against the order of the Commissioner for the availment and utilization of irregular cenvat credit taken on capital expenditure at Chintamani Unit amounting to Rs. 43,03,304/- for the financial year 2011-12. The Company has reversed the amount of Rs.30,45,832/- and charged it to profit & losss account. The credit of an amount of Rs.12,57,472 is under litigation

e) The Company has imported plant and machinery under EPCG Scheme on which it 25,863,067 23,535,321 has availed Duty benefit

Raw material under Advance Licence Nil 35,698,088 scheme and availed a duty benefit

f ) The Company has undertaken Domestic factoring facility for its trade 89,647,078 81,852,846 debtors from financial institutions.

Guarantees given by the bank on behalf 16,325,147 16,050,147 of the Company

g) The Company has filed a writ petition in the honorable High Court of 1,905,256 - Uttarakhand at Nainital against the demand of mandi "market fee" levied by the State of Uttarakhand @ 0.5% on purchase of woods from the state of Uttar Pradesh and 2.5% from any other place excluding Uttar Pradesh with effect from Nov''2011. Bulk of our wood comes from the state of Uttar Pradesh, however liability amount not yet determined.

Note - 2

Segment Reporting: The Company has identified two segments viz a) Wood based product b) Paper based product, which have been identified in line with Accounting Standard 17 on segment reporting taking into account organizational structure as were as differential risk and return of these segments.

Details of the Products included in each segment are as under:

i) Wood based products: Plywood, Block Board, Veneers, Decorative plywood, Prelaminated Partical Boards.

ii) Paper based products: Laminated Sheets (HPL).

The segment information has been prepared in conformity with the Accounting Policies for preparing and presenting the financial statements of the Company.

Segment revenue and results includes manufacturing as well as trading activities for the same segment product. Segment current assets and liabilities are taken on the basis of the turnover of the segment.

The following table presents the information relating to profit, assets and liabilities of the business segment. (Primary Segment) of the Company.

Note - 3

Disclosure as per Accounting Standard 18 (AS-18) "Related Party Disclosures" Issued by the Institute of Chartered Accountants of India.

Associate Companies:

i) The Mysore Chip Boards Ltd

ii) Assam Timber Products Pvt Ltd

iii) Shree Shyam Tea Pvt Ltd

iv) Bordhumsa Tea Company Pvt Ltd

v) Vanraj suppliers Pvt Ltd

vi) Ravi Marketing Services Pvt Ltd

Key Management Personnel:

i) Mr. Deendayal Daga – Chairman

ii) Mr. Shyam Daga – Managing Director

iii) Mr. Rajiv Daga – Jt. Managing Director

Note - 4

Previous year''s figures have been regrouped and re classified to facilitate the comparison with current year''s figures wherever necessary.

Note - 5 CAPITALISATION OF HEDGING CHARGES

Hedging Charges of Rs.78,89,440/- (PY Rs.52,53,672/-) on foreign currency term loan has been capitalised with the cost of fixed asset as per the clause 46A of the Accounting Standard -11.

Note : - 6 UNCLAIMED SHARES

In terms of Clause 5A of the Listing Agreement with the Stock Exchange, the Company has opened the demat suspense account and has transferred the 4425 unclaimed shares of public issue to "Archidply Industries Limited Unclaimed Shares Suspense Account." The Voting rights on these shares will remain frozen till the rightful owner claims the shares.

Opening Balance of the Shares in the demat account 4425

Closing Balance of the Shares in the demat account 4425


Mar 31, 2013

NOTE - 1

Segment Reporting : The Company has identifed three segments viz a) Wood based product b) Paper based product, which have been identifed in line with Accounting Standard 17 on segment reporting taking into account organizational structure as were as diferential risk and return of these segments.

Details of the Products included in each segment are as under:

i) Wood based products: Plywood, Block Board, Veneers, Decorative plywood, Prelaminated Partical Boards.

ii) Paper based products: Laminated Sheets ( HPL).

The segment information has been prepared in conformity with the Accounting Policies for preparing and presenting the fnancial statements of the Company.

Segment revenue and results includes manufacturing as well as trading activities for the same segment product. Segment current assets and liabilities are taken on the basis of the turnover of the segment.

The following table presents the information relating to proft, assets and liabilities of the business segment. (Primary Segment) of the Company.

NOTE - 2

Disclosure as per Accounting Standard 18 (AS-18) "Related Party Disclosures" Issued by the Institute of Chartered Accountants of India.

Associate Companies :

i) The Mysore Chip Boards Ltd.

ii) Assam Timber Products Pvt. Ltd.

iii) Shree Shyam Tea Pvt. Ltd.

iv) Bordhumsa Tea Company Pvt. Ltd.

v) Vanraj suppliers Pvt. Ltd.

vi) Ravi Marketing Services Pvt. Ltd.

Key Management Personnel :

i) Mr. Deen Dayal Daga – Chairman

ii) Mr. Shyam Daga – Managing Director

iii) Mr. Rajiv Daga – Jt. Managing Director

NOTE - 3

"Previous year fgures have been regrouped and re classifed to facilitate the comparison with the current year fgures wherever necessary".

NOTE - 4 CAPITALIsATION OF HEDGING CHARGEs

Hedging Charges of Rs.52,53,672/- (PY Rs. NIL) on foreign currency term loan has been capitalised with the cost of fxed asset as per the clause 46A of the Accounting Standard -11. Company has started capitalization of Hedging Charges from current fnancial year onwards. Hedging Charges of Rs. 88,80,035/- was debited to proft & loss account for the fnancial year 2011-12.

NOTE - 5 PROFIT ON LAND TRANsACTION

Other Income included the proft on sale of land transaction of Rs. 1,61,17,200/- (PY Nil) which the Company realized by buying and selling land of its sister concern The Mysore Chipboard Limited.

NOTE - 6 UNCLAIMED sHAREs

In terms of Clause 5A of the Listing Agreement with the Stock Exchange, the Company has opened the demat suspense account and has transferred the 4425 unclaimed shares of public issue to "Archidply Industries Limited unclaimed Shares Suspense Account." The Voting rights on these shares will remain frozen till the rightful owner claims the shares.

Opening Balance of the shares in the demat account - 4425

Closing Balance of the shares in the demat account - 4425


Mar 31, 2012

A) The Company has only one class of equity shares having a par value of Rs. 10 per share, each Shareholder is eligible for one vote per share.

b) 1,15,68,180 (Previous year 1,15,68,180) Equity shares of Rs. 10/- each issued as fully paid up for acquiring the plywood and block board and particle & laminated board (Both divisions) of the Mysore Chip Board Limited pursuant to Scheme of Arrangement sanctioned by Hon'ble High court of Karnataka without payment being received in cash in the financial year 2007-08.

c ) 65,000 (Previous year 51,500) Shares out of issued, subscribed and paid up capital were allotted under ESOP scheme for Rs. 10/- each. The in principle approval for the Employee stock Option scheme - "Archidply Industries Limited ESOS-2009" exercisable into not more than 2,00,000 options has been obtained by the Company. The options are vested to the eligible employees as per the scheme with effect from 1st April, 2010. The total options granted on 1st April, 2009 were 93,000 at an exercise price of Rs. 10 per option. The options vested were 72,500 and options exercised were 65,000 as on 31st March, 2012. The total number of shares arising as a result of exercise of options are 65,000 shares.

d) 13,500/- (Previous year 51,500) Equity shares of Rs. 10/- each issued as fully paid up under ESOP Scheme.

Term of repayment and nature of Security for long term secured borrowings :

i) Term Loan amounting of Rs. 1,20,35,876/- (31st March, 2011 : Rs. 5,49,21,692) is secured by first charge on all immovable properties of Rudrapur unit of the Company present and future and hypothecation of all assets both present and future of Rudrapur unit and personal guarantee of promotor directors and repayable in 20 quarterly installments starting from April 2007 last installment due on April 2012.

ii) Term Loan amounting of Rs. 2,98,86,558/- (31st March, 2011 : Rs. 2,97,66,492) is secured by first charge on all immovable properties of Chintamani unit of the Company present and future and hypothecation of all assets both present and future of Chintamani unit and personal guarantee of promotor directors and repayable in 41 monthly installments starting from August 2012 last installment due on December 2015.

iii) Term Loan amounting of Rs. 10,83,09,034/- (31st March, 2011 : Rs. 10,83,00,000) is secured by first charge on all immovable properties of Chintamani unit of the Company present and future and hypothecation of all assets both present and future of Chintamani unit and personal guarantee of promoter directors and repayable in 50 monthly installments starting from August 2012 last installment due on September 2016.

iv) Unsecured Term Loan amounting of Rs. Nil (31st March, 2011 : Rs. 19,08,837) repayable in 24 monthly installments starting from April 2011 last installment due on March 2013.

v) Installments falling due in respect of all the above loans up to 31st March, 2013 have been grouped under "Current maturities of Long Term Debt"

(Refer Note 7)

NOTE - 1

CONTINGENT LIABILITIES AND COMMITMENTS As at As at

(TO THE EXTENT NOT PROVIDED FOR) 31st March, 2012 31st March, 2011

1. CONTINGENT LIABILITIES :

a) On account of Demerger of Plywood & Block Board and Particle & laminated board (both divisions) of The Mysore Chip Boards Limited in to the Company in the financial year 2007-08 :

i) The Government of Karnataka has demanded additional seigniorage and interest towards supply of timber to the factory of The Mysore Chip Boards Limited, with effect from 23rd February, 1981 to 28th June, 1982. The Mysore Chip Boards Limited, being a sick company at that time, 16,04,023 16,04,023 made request to the appropriate authority for waiver of this amount. However as a precautionary measure, The Mysore Chip Boards Limited has already paid an amount of Rs. 4,25,741.95 (P.Y. Rs. 4,25,741.95) against this demand.

ii) Various parties had filed a civil suit for recovery of dues / damages against The Mysore Chip Boards Limited, which has been disputed by The Mysore Chip Boards Limited 12,28,606 12,28,606 and had deposited an amount of Rs. 11,46,419/- (P.Y. Rs. 11,46,419) with Hon'ble High Court of Gujarat. The said amount of Rs. 11,46,419/- (P.Y. Rs. 11,46,419)

iii) The Company, for and on behalf of the Mysore Chip Boards Limited has given a guarantee towards a show cause notice issued by the Excise Department demanding a dues from The Mysore Chip Boards Limited. However The Mysore Chip Boards Limited had deposited an amount of Rs. 16,00,000/- (P.Y. Rs. 16,00,000) with Central Excise Department. The Mysore Chip Boards Limited had filed an appeal & disputed the said demand and the demand has been reduced to Rs. 81,01,637/- (P.Y. 1,62,03,274 1,62,03,274 Rs. 81,01,637) and the penalty of the same amount by Commissioner of Central Excise, Mysore on 5th October, 2006. The Mysore Chip Board Ltd has filed an appeal to Custom, Excise & Service Tax Appellate Tribunal, Bangalore and obtained a stay order against that demand. The tribunal has remanded back the case to the Commissioner of Central Excise for taking fresh decision after following the principles of natural justice.

b) The Company has received show cause notice issued by the Excise Department, Commissionate Meerut-II demanding Rs. 4,41,92,921/- for period from April 2006 to December 2010 4,41,92,921 - for production of phenol formaldehyde resin which company is using for its own production. Hearing is going with the Excise Department, Commissionate Meerut-II.

c) The Deputy Commissioner of sales tax Rudrapur has demanded Rs. 49,98,317/- related to financial year 2007-08 and Rs. 1,36,687/- related to financial year 2006-07 and interest 51,35,004 - on above amount till date. The Company has deposited Rs. 11,57,615/- and filed appeal with Joint Commissioner Appeal-I, Sales Tax Uttarchand against same demand.

d) The Company has imported plant and achinery under EPCG 3,07,94,751 3,07,94,751 Scheme on which it has availed Duty benefit Raw material under Advance Licence scheme and availed a 2,51,96,190 2,51,96,190 duty benefit

e) The Company has undertaken Domestic factoring facility for 10,02,99,387 10,22,98,939 its trade debtors from financial institutions.

f) Guarantees given by the bank on behalf of the Company 97,38,542 1,10,11,170

2. COMMITMENTS :

i) Estimated amount of contracts remaining to be executed - 58,00,000 on capital account not provided for (net of advances)

ii) The Company, during the year has capitalized interest on - 20,32,993 loan (borrowing cost) amounting

NOTE - 2

Segment Reporting : The Company has identified three segments viz a) Wood based product; b) Paper based product, which have been identified in line with Accounting Standard 17 on segment reporting taking into account organizational structure as were as differential risk and return of these segments.

Details of the Products included in each segment are as under :

i) Wood based products : Plywood, Block Board, Veneers, Decorative Plywood, Prelaminated Particle Boards.

ii) Paper based products : Laminated Sheets (HPL).

The segment information has been prepared in conformity with the Accounting Policies for preparing and presenting the financial statements of the Company.

Segment revenue and results includes manufacturing as well as trading activities for the same segment product. Segment current assets and liabilities are taken on the basis of the turnover of the segment.

NOTE - 3

Disclosure as per Accounting Standard 18 (AS-18) "Related Party Disclosures" Issued by the Institute of Chartered Accountants of India.

Associate Companies :

i) The Mysore Chip Boards Ltd.

ii) Assam Timber Products Pvt. Ltd.

iii) Shree Shyam Tea Pvt. Ltd.

iv) Bordhumsa Tea Company Pvt. Ltd.

v) Vanraj suppliers Pvt. Ltd.

vi) Ravi Marketing Services Pvt. Ltd.

Key Management Personnel :

i) Mr. Deen Dayal Daga - Chairman

ii) Mr. Shyam Daga - Managing Director

iii) Mr. Rajiv Daga - Jt. Managing Director

iv) Mr. K.K. Somani - Director Technical

NOTE - 4

The Financial Statement for the year ended 31st March, 2011 has been prepared as per the then applicable, prerevised Schedule VI of the Companies Act, 1956. Consequent to the notification under the Companies Act, 1956, the Financial Statement for the year ended 31st March, 2012 are prepared under revised Schedule VI. Accordingly the previous year's figures have also been classified to conform to the year's classification.

NOTE - 5 : SALE OF LAND AT MYSORE

The Company has sold the land of the Mysore Unit of 225423 sq. ft. (5 Acres 7 Guntas) area for Rs. 20,85,16,276/- only. The Company has also earned the income on the sale of land at Mysore Unit belonging to The Mysore Chipboards Limited measuring 251559 sq. ft. (5 Acres 31 Guntas) area of Rs. 4,65,38,415/-. The land was purchased from the Mysore Chipboards Limited for Rs. 740 per sq. ft. and was sold at Rs. 925 sq. ft.

NOTE - 6 : BAD DEBTS WRITTEN OFF

The Company has written off Debtors to the extent of Rs. 11.90 crore (previous year Rs. Nil) to the Bad debt which was inactive for more than 4 or more years and all avenues have been exhausted by management to collect the outstanding debt.

NOTE - 7 : UNCLAIMED SHARES

In terms of Clause 5A of the Listing Agreement with the Stock Exchange, the Company has opened the demat suspense account and has transferred the 4425 unclaimed shares of public issue to "Archidply Industries Limited Unclaimed Shares Suspense Account." The voting rights on these shares will remain frozen till the rightful owner claims the shares.

Opening Balance of the shares in the demat account - 4425

Closing Balance of the shares in the demat account - 4425


Mar 31, 2011

1. The principle approval for the Employee Stock Option Scheme, 2009 exercisable into not more than 2,00,000 options has been obtained by the Company in the year 2009-10. The 51500 options were exercised during the year and 51500 Equity shares of Rs. 10/- each issued as fully paid up under ESOP Scheme. The listing & trading approval for 51500 shares was taken from the stock exchanges where the Company's share are listed. The amount of Rs. 42475 was transferred to Securities Premium account on exercise of options and Rs.344030 has been reversed during the year due to the leaving of the employees to whom the options were granted and were due in the following financial year as per SEBI(ESOP ) Guidelines,1999.

2. Contingent Liabilities not provided for in respect of:

a) On account of Demerger of Plywood & Block Board and Particle & laminated board (both divisions) of The Mysore Chip Boards Limited into the Company in the financial year 2007-08:

I) The Government of Karnataka has demanded additional seigniorage and interest amounting to Rs. 16,04,022.77

(P.Y. Rs. 16,04,022.77) towards supply of timber to the factory of The Mysore Chip Boards Limited, with effect from 23/2/1981 to 28/6/1982. The Mysore Chip Boards Limited, being a sick company at that time, made request to the appropriate authority for waiver o f this amount. However as a precautionary measure, The Mysore Chip Boards Limited has already paid an amount of Rs. 425741.95 (P.Y. Rs. 425741.95) against this demand.

ii) Various parties had filed a civil suit for recovery of dues / damages amounting to Rs. 12,28,606/- (P.Y. Rs. 12,28,606/) against The Mysore Chip Boards Limited, which has been disputed by The Mysore Chip Boards Limited and had deposited an amount of Rs. 11,46,419/- ( P.Y. Rs. 11,46,419 ) with Hon'ble High Court of Gujarat. The said amount of Rs. 11,46,419/- (P.Y. Rs. 11,46,419) had shown as an advance which Is included in Schedule no. 10 - Loans and Advances (Advances recoverable in cash or kind or for value to be received) forming part of Balance Sheet.

iii) The Company, for and on behalf of The Mysore Chip Boards Limited has given a guarantee towards a show cause notice issued by the Excise Department demanding a dues of Rs. 7,28,91,397/- (P.Y. Rs. 7,28,91,397/) from The Mysore Chip Boards Limited. However The Mysore Chip Boards Limited had deposited an amount of Rs. 16,00,000/-( P.Y. Rs. 16,00,000/) with Central Excise Department. The Mysore Chip Boards Limited had filed an appeal & disputed the said demand and the demand has been reduced to Rs.81,01,637/- (P.Y. Rs.81,01,637/) and the penalty of the same amount by Commissioner of Central Excise, Mysore on 05/10/2006. The Mysore Chip Board Ltd has filed an appeal to Custom, Excise & Service Tax Appellate Tribunal, Bangalore and obtained a stay order against that demand. The tribunal has remanded back the case to the Commissioner of Central Excise for taking fresh decision after following the principles of natural justice.

b) The Company has imported plant and machinery under EPCG Scheme on which it has availed a duty benefit of Rs. 3,07,94,750.83 (P.Y. 3,01,09,109.82/-) & raw material under Advance Licence scheme and availed a duty benefit of Rs. 2,51,96,189.93/- (P.Y. 2,44,92,965.38/-). The company has net export obligation of Rs. 24,17,88,615/- ( P.Y. Rs. 21,09,22,815/- ) against these benefits at the year end.

c) Letter of Credit established but material not received amounting to Rs. 58,06,388.42/-(P.Y. Rs. 2,29,58,102.39/-)

d) The Company has undertaken Domestic factoring facility for its trade debtors from financial institutions, the contingent liability for the same as at 31st March 2011 is Rs.10,22,98,938.60/- (P.Y. Rs. 11,16,12,418.04/-)

e) Guarantees given by the bank on behalf of the Company is Rs.1,10,11,170/- (P.Y. Rs.1,10,11,170/-)

3. Estimated amount of contracts remaining to be executed on capital account not provided for (net of advances) :Rs. Nil (Previous year Rs. 58 Lakhs).

4. The Company, during the year has capitalized interest on loan (borrowing cost) amounting to Rs. 20,32,993/- (Previous year Rs. 4,58,096/-)

5. Segment Reporting : The Company has identified two segments viz a) Wood based product b) Paper based product, which have been identified in line with Accounting Standard 17 on segment reporting taking into account organizational structure as were as differential risk and return of these segments.

Details of the Products included in each segment are as under:

i)Wood based products: Plywood, Block Board, Veneers, Decorative plywood, Prelaminated Partical Boards.

ii)Paper based products: Laminated Sheets ( HPL).

The segment information has been prepared in conformity with the Accounting Policies for preparing and presenting the financial statements of the Company.

Segment revenue and results includes manufacturing as well as trading activities for the same segment product. Segment current assets and liabilities are taken on the basis of the turnover of the segment.

B) Secondary Segment Reporting :

The Company has no reportable secondary segment.

6. Disclosure as per Accounting Standard 18 ( A S - 1 8 ) "Related Party Disclosures" Issued by the Institute of Chartered Accountants of India.

i)The Mysore Chip Boards Ltd ii)Assam Timber Products Pvt Ltd iii)Shree Shyam Tea Pvt Ltd iv)Bordhumsa Tea Company Pvt Ltd v)Vanraj suppliers Pvt Ltd vi)Ravi Marketing Services Pvt Ltd

Key Management Personnel:

i)Mr. Deendayal Daga - Chairman ii)Mr. Shyam Daga - Managing Director iii)Mr. Rajiv Daga - Jt. Managing Director iv)Mr. K.K. Somani - Director Technical

7. Earning Per Share:

As required by Accounting Standard - AS 20 "Earning Per Share" issued by the Institute of Chartered Accountants of India", the Earning Per Share (EPS) is calculated by dividing the profit for the year attributable to the Equity Shareholders by the weighted average number of Equity Shares outstanding during the year and is ascertained as follows.

8. In the opinion of the Board,Current Assets, and Loans and Advances are approximately of the value stated if realized in the ordinary course of business. The provision for all known and determined liabilities is adequate and not in excess of the amounts reasonably required.

9. Balances of some of the Sundry Debtors, Creditors, Loans and Advances are subject to confirmation, reconciliation and consequent adjustment if any. However, in the opinion of the management such adjustments, if any, will not material.

10. The Process of Identifying the suppliers who fall within the Micro, Small & Medium Enterprises Development Act 2006 has been initiated. In the absence of information, Company is unable to provide information regarding the principle amount outstanding & interest due thereon remaining unpaid to any supplier & other details under the Micro, Small & Medium Enterprises Development Act 2006 as at 31-03-2011.

11. Previous year's figures have been regrouped reclassified and recasted wherever necessary to confirm to this year's classification.

12. Unclaimed Shares

In terms of clause 5A of the Listing Agreement with the Stock Exchange, the Company has opened the demat suspense account

and has transferred the 5400 unclaimed shares of Public Issue to "Archidply Industries Limited Unclaimed Securities Suspense Account". The voting rights on these shares will remain frozen till the rightful owner claims the shares.

Opening Balance of the shares in the demat account - 5400

Closing balance of the shares in the demat account - 4425

No. of share transferred to share holders during the year - 975

No. of shareholders at the beginning of the year 13

No. of shareholders to whom transferred from suspense account during the year - 3

No. of shareholders at the end of the year - 10


Mar 31, 2010

1. The in principle approval for the Employee Stock Option Scheme, 2009 (ESOS) exercisable into not more than 2,00,000 options has been obtained by the Company. On 01.04.2009, 93000 options were granted to the eligible employees @Rs. 10 per option by the Compensation Committee. The Company follows intrinsic value method to account for its ESOS.In this regard the Company has complied with the SEBI(Employee Stock Option Scheme & Employee Stock Option Purchase Scheme)Guidelines, 1999. The accounting value of options is equal to the aggregate, overall employee stock options granted during the accounting period, of the intrinsic value of the option.The accounting value accounted for as an employee compensation, shall be amortised on a straight line method basis over the vesting period in line with the Securities and Exchange Board of India (SEBI) Guidelines.

2. Contingent Liabilities not provided for in respect of:

a) On account of Demerger of Plywood & Block Board and Particle & laminated board (both divisions) of The Mysore Chip Boards Limited into the Company in the financial year 2007-08:

I) The Government of Karnataka has demanded additional seigniorage and interest amounting to Rs. 16,04,022.77

(P.Y. Rs. 16,04,022.77) towards supply of timber to the factory of The Mysore Chip Boards Limited, with effect from 23/2/1981 to 28/6/1982. The Mysore Chip Boards Limited, being a sick company at that time, made request to the appropriate authority for waiver o f this amount. However as a precautionary measure, The Mysore Chip Boards Limited has already paid an amount of Rs. 425741.95 (P.Y. Rs. 425741.95) against this demand.

ii) Various parties had filed a civil suit for recovery of dues / damages amounting to Rs. 12,28,606/- (P.Y. Rs. 12,28,606/) against The Mysore Chip Boards Limited, which has been disputed by The Mysore Chip Boards Limited and had deposited an amount of Rs. 11,46,419/- ( P.Y. Rs. 11,46,419 ) with Honble High Court of Gujarat. The said amount of Rs. 11,46,419/- (P.Y. Rs. 11,46,419) had shown as an advance which Is included in Schedule no. 10 - Loans and Advances (Advances recoverable in cash or kind or for value to be received) forming part of Balance Sheet.

iii) The Deputy Commissioner of commercial Taxes vide Its order dated 6th June 2007 demanded dues towards sales tax and entry tax of Rs.101.7 lakhs (P.Y.Rs.101.7 lakhs) for the year 2001-2004, out of this still Rs.10.79 lakhs (P.Y.Rs.10.79lakhs) is still not paid as Company has made representation to reduce the liability.

iv) The Company, for and on behalf of The Mysore Chip Boards Limited has given a guarantee towards a show cause notice issued by the Excise Department demanding a dues of Rs. 7,28,91,397/- (P.Y. Rs. 7,28,91,397/-) from The Mysore Chip Board Limited. However The Mysore Chip Boards Limited had deposited an amount of Rs. 16,00,000/- ( P.Y. Rs.16,00,000/-) with Central Excise Department. The Mysore Chip Boards Limited had filed an appeal & disputed the said demand and the demand has been reduced to Rs .81,01,637/- (P.Y. Rs.81,01,637/-) and the penalty of the same amount by Commissioner of Central Excise, Mysore on 05/10/2006. The Mysore Chip Board Ltd has filed an appeal to Custom, Excise & Service Tax Appellate Tribunal, Bangalore and obtained a stay order against that demand.

b) The Company has imported plant and machinery & availed a duty benefit of Rs. 3,01,09,109.82/- (P.Y. Rs.2,93,04,171.42/-) under EPCG scheme for reduction in import duty against which the company has net export obligation of Rs. 21,09,22,815/- (P.Y. Rs.2,93,04,171.42/-) at the year end.

c) Letter of Credit established but material not received amounting to Rs.2,29,58,102.39/- (P.Y. Rs.2,96,48,655/-)

d) The Company has undertaken Domestic factoring facility for its trade debtors from SBI Global Factors Ltd & IndusInd Bank Limited, the contingent liability for the same as at 31st March 2010 is Rs.11,16,12,418.04/- (P.Y. Rs.4,73,25,218.89/-)

e) Guarantees given by the bank on behalf of the Company is Rs.1,10,11,170/- (P.Y. Rs.1,37,08,470/-)

3. In case of Demerger of Plywood & Block Board and Particle & laminated board (both divisions) of The Mysore Chip Board Limited in to the Company in the financial year 2007-08. The Company has filed the Memo with Honble High Court of Karnataka for the decree and waiting for the decree from the Honble High Court of Karnataka.

4. Estimated amount of contracts remaining to be executed on capital account not provided for (net of advances)Rs. 58 Lakhs (Previous year Rs.100 lakhs).

5. The Company, during the year has capitalized interest on loan (borrowing cost) amounting to Rs. 4,58,096/- (Previous year Rs.10,95,892/-)

The Company has not paid any commission to the Managerial Personnel. Hence the calculation under Section 349 & 350 read with Section 309 of the Companies Act, 1956 is not applicable.

6. Segment Reporting : The Company has identified two segments viz a) Wood based product b) Paper based product, which have been identified in line with Accounting Standard 17 on segment reporting taking into account organizational structure as were as differential risk and return of these segments.

Details of the Products included in each segment are as under:

i)Wood based products: Plywood, Block Board, Veneers, Decorative plywood, Prelaminated Partical Boards.

ii)Paper based products: Laminated Sheets ( HPL).

The segment information has been prepared in conformity with the Accounting Policies for preparing and presenting the financial statements of the Company.

Segment revenue and results includes manufacturing as well as trading activities for the same segment product. Segment current assets and liabilities are taken on the basis of the turnover of the segment.

The following table presents the information relating to profit, assets and liabilities of the business segment. (Primary Segment) of the Company.

B) Secondary Segment Reporting :

The Company has no reportable secondary segment.

7. Disclosure as per Accounting Standard 18 ( A S - 1 8 ) "Related Party Disclosures" Issued by the Institute of Chartered Accountants of India.

Associate Companies:

i) The Mysore Chip Boards Ltd ii) Assam Timber Products Pvt Ltd iii) Shree Shyam Tea Pvt Ltd

Key Management Personnel:

i)Mr. Deendayal Daga - Chairman ii)Mr. Shyam Daga - Managing Director iii)Mr. Rajiv Daga - Jt. Managing Director iv)Mr. K.K. Somani - Director Technical The Company has entered into transactions with aforesaid parties as listed below during the year under consideration. Full Disclosure has been made and the Board of Directors considers such transactions to be in normal course of business and at rates agreed between the parties. Details of transactions with related parties are as follows :

8. Earning Per Share:

As required by Accounting Standard - AS 20 "Earning Per Share" issued by the Institute of Chartered Accountants of India", the Earning Per Share (EPS) is calculated by dividing the profit for the year attributable to the Equity Shareholders by the weighted average number of Equity Shares outstanding during the year and is ascertained as follows.

9. In the opinion of the Board,Current Assets, and Loans and Advances are approximately of the value stated if realized in the ordinary course of business. The provision for all known and determined liabilities is adequate and not in excess of the amounts reasonably required.

10. Balances of some of the Sundry Debtors, Creditors, Loans and Advances are subject to confirmation, reconciliation and consequent adjustment if any. However, in the opinion of the management such adjustments, if any, will not material.

11. The Process of Identifying the suppliers who fall within the Micro, Small & Medium Enterprises Development Act 2006 has been initiated. In the absence of information, Company is unable to provide information regarding the principle amount outstanding & interest due thereon remaining unpaid to any supplier & other details under the Micro, Small & Medium Enterprises Development Act 2006 as at 31-03-2010.

12. Fixed Assets has been regrouped and reclassified, as a result plant & machinery of Rs. 4,01,87,486/-, has been transferred to Building Rs. 3,88,35,891/-, Electical Installation Rs. 10,40,479/-, Water Installation Rs. 2,08,265/-, Laboratory Equipment Rs. 59,558/-, Computer Rs. 24,315/- and Office Equipment Rs. 18,978/-. Because of regrouping modvat credit of excise duty to the tune of Rs. 42,95,557/- has been reversed and added to Building. Due to this excess depreciation of Rs. 4,27,601/- charged in last financial year has been adjusted in the current year depreciation.

13. Previous years figures have been regrouped reclassified & recasted wherever necessary to confirm to this years classification.

 
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