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Notes to Accounts of Essel Propack Ltd.

Mar 31, 2014

1. Contingent Liabilities not provided for

(Amount in Rs.)

2014 2013

a) Unexpired Letters of credit (net of Liability provided) 17,040,962 26,159,580

b) Guarantees and counter guarantees given by the Company (includes Rs. 5,297,214,117 5,676,306,052 Rs. 5,294,214,117 (Rs. 5,673,306,052) for loans taken by subsidiaries]. Loans outstanding against these guarantees are Rs. 4,233,113,957 (Rs. 3,635,492,582)

c) Disputed Indirect Taxes* 185,688,926 245,881,848

d) Disputed Direct Taxes 83,355,624 109,705,949

e) Claims not acknowledged as debts 4,996,550 4,996,550

f) Deferred Sales Tax liability assigned 68,605,087 68,605,087

g) Duty benefit availed under EPCG scheme, pending export obligations 181,207,500 114,657,607

* Does not include disputed excise duty of Rs. 115,428,779 (Rs. 115,428,779) for alleged undervaluation in inter unit transfer of web, for captive consumption as it does not have significant impact on profits of the Company since excise duty paid by one unit is admissible as Cenvat credit at other unit. Further, the appeal filed by Excise Department against the decision (in Company''s favour) of High Court is pending before the Hon''ble Supreme Court.

A Without considering relief granted by the Appellate Authorities in favour of the Company, tax effect Rs. 35,347,198 (Rs. 33,477,720) (approx.), which is pending with relevant authority.

b) Performance bonus payable to managing director for the year ended 31 March 2011 to the extent of Rs. 5,208,255 not covered by the Central Government approval is written back during the year.

c) The current year financial statements include commission paid to Non-executive independent directors Rs. 4,176,986 for the year ended 31 March 2013 and payable Rs. 3,600,000 for the year ended 31 March 2014. (Previous year Rs. 3,600,000)

2. Investments

a) The Company''s wholly owned subsidiary (WOS), Essel Packaging (Nepal) Private Limited, had discontinued its operations and disposed off assets and paid off liabilities. The Management is of the opinion that the realizable value of investment will not be less than its carrying value.

b) During the year, the Company has transferred its investment in a wholly owned direct subsidiary Lamitube Technologies Limited, Mauritius to its step down wholly owned subsidiary EP Lamipack Limited, India as a part of reorganisation of its investment in subsidiaries at a value determined by the independent valuer. In substance, pattern of ownership, beneficial interest and control of the company''s investment has not, in any way, been altered. Gain of Rs. 20,564,418 on the transaction has been shown as an exceptional item in the Statement of Profit and Loss.

3. During the year, the Company has fulfilled its export obligations under the "Zero Duty EPCG Scheme" of erstwhile Ras Propack Lamipack Limited ("RPLL") (the merged entity) and accordingly remaining custom duty provision, which was capitalised in earlier years of Rs. 24,445,620 (Rs. 18,783,126) is reduced from the cost of fixed assets and consequently interest on custom duty of Rs. 61,623,062 (Rs. 47,348,915) is written back to the Statement of Profit and Loss as an exceptional item.

4. Exceptional item includes (a) write back of Rs. 61,623,062 (Rs. 47,348,915) being interest provided by erstwhile RAS Propack Lamipack Limited (merged) on custom duty provision on imports under EPCG scheme, no longer required, (b) Cenvat credit of Rs. 69,283,365 (Rs. Nil) of prior years, not realisable hence written off and (c) gain of Rs. 20,564,418 (Rs. Nil) on sale of investment (refer note 29 (b)).

5. Foreign Exchange Difference

The Companies (Accounting Standards) Amendment Rules, 2011 has amended provisions of AS-11 related to "The Effect of Changes in Foreign Exchanges Rates" vide notification dated 11 May 2011 (as amended on 29 December 2011 and further clarification dated 9 August 2012) issued by The Ministry of Corporate Affairs (MCA). In terms of these amendments,

a) Exchange difference loss (net) of Rs. 95,105,514 (Rs. 54,844,301) is capitalised to cost of fixed assets/capital work in progress.

6. Gratuity and Other Post Employment Benefit Plans

As per Accounting Standard - 15 "Employee Benefits", the disclosures of employee benefits as defined in the Accounting Standard are given below:

a) The Company makes annual contributions to the employees'' gratuity fund scheme, a funded defined benefit plan which is managed by LIC of India. 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) Leave encashment is a non-funded defined benefit scheme. The obligation for leave encashment is recognized in the same manner as gratuity.

c) Details of post retirement gratuity plan are as follows:-

i. Expenses recognised during the year

d) Fellow Subsidary

White hills Advisory Services Private Limited (w.e.f. 12 February 2014)

ii) Other related parties with whom transactions have taken place during the year and balances outstanding at the year end.

a) Other Related Parties

Aqualand (India) Limited, Ayepee Lamitubes Limited, Churu Trading Company Private Limited (merged with Sprit Textiles Private Limited w.e.f. 1 October 2012), Continental Drug Company Private Limited, Essel Corporate Resources Private Limited, Ganjam Trading Company Private Limited, Pan India Paryatan Private Limited, Prajatma Trading Company Private Limited (merged with Sprit Textiles Private Limited w.e.f. 1 October 2012), Rama Associates Limited, Zee Entertainment Enterprises Limited, Sprit Textiles Private Limited.

b) Directors of the Company

Non-Executive Director Mr. Subhash Chandra

Executive Director Mr. Ashok Goel

(Vice-Chairman and Managing Director)

7. Dividend of Rs. 829,918 [t 858,629) unclaimed for a period of more than seven years is transferred to Investor Education and Protection Fund during the year. There is no amount due and outstanding to be credited to Investor Education and Protection Fund as at 31 March 2014.

8. Service charges include prior period income of Rs. Nil (Rs. 832,498).

9 Segment Information.

The financial statements of the Company contain both the consolidated financial statements as well as the separate financial statements of the parent Company. Hence, the Company has presented segment information on the basis of the Consolidated Financial Statements as permitted by Accounting Standard -17.

10. Prior Period Comparatives

Previous year''s figures have been regrouped / reclassified wherever necessary to correspond with current year''s classifications / disclosures. Figures in brackets pertain to previous year.


Mar 31, 2013

1. CORPORATE INFORMATION

Essel Propack Limited (hereinafter referred to as ''EPL'' or ''the Company'') is a producer of plastic packaging material in the form of multilayer collapsible tubes and laminates used primarily for packaging of toothpaste, personal care, cosmetics, pharmaceuticals, household and industrial products.

a) Terms / rights attached to equity shares

The Company has only one class of equity shares having a par value of Rs. 2 per share. Each holder of equity shares is entitled to one vote per share. The Company declares and pays dividend in Indian rupees. The final dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting.

In the event of liquidation of the Company, the holders of the equity shares will be entitled to receive remaining assets of the Company, after distribution of preferential amount. The distribution will be in proportion to the number of equity shares held by the shareholders.

b) No bonus shares have been issued and no shares bought back during five years preceding 31 March 2013.

c) 5,00,155 equity shares of Rs. 2 each fully paid up were allotted on 14 September 2012 for consideration other than cash.

(Refer note 30)

Short-term borrowings of

a) Rs. 151,623,902 (Rs. 260,541,770) are secured by first pari-passu charge on current assets and second pari-passu charge on fixed assets situated at Vasind, Murbad, Wada, Goa and Nalagarh units. These loans are also collaterally secured by security provided and guarantee issued by related party.

b) Rs. 392,346,144 (Rs. 391,540,623) are secured by first pari-passu charge on current assets and second pari-passu charge on fixed assets situated at Vasind, Murbad, Wada, Goa and Nalagarh units.

c) Rs. Nil (Rs. 81,740,051) are secured by first pari-passu charge on current assets of the Company.

d) Unsecured short term loan from banks of Rs.250,000,000 (Rs. 250,000,000) are against security provided and guarantee issued by related party.

2. CAPITAL AND OTHER COMMITMENTS

Estimated amount of contracts remaining to be executed on capital account, not provided for (net of advances) Rs. 229,063,283 (Rs. 265,249,641).

* Does not include disputed excise duty of Rs. 115,428,779 (Rs. 115,428,779) for alleged undervaluation in inter unit transfer of web, for captive consumption as it does not have significant impact on profits of the Company since excise duty paid by one unit is admissible as Cenvat credit at other unit. Further, the appeal filed by Excise Department against the decision (in Company''s favour) of High Court is pending before the Hon''ble Supreme Court.

A Without considering relief granted by the Appellate Authorities in favour of the Company, tax effect Rs. 53,583,923 (Rs. 50,576,133) (approx.), which is pending.

b) The performance bonus payable to managing director for the year ended 31 March 2011 as approved by the Central Government vide letter dated 16 May 2012 was less than performance bonus approved by the Board of Directors by Rs. 5,208,255. The Company has made a representation to the Central Government for approval of the said amount which remains unpaid.

c) During the year, the Company has paid commission of Rs. 3,600,000 (Rs. 3,600,000) to Non-executive independent directors for the year ended 31 March 2012.

3. LEASES

The Company has taken premises, residential facilities, plant and machinery (including equipments) and vehicles under cancellable / non-cancellable operating lease agreements that are renewable on a periodic basis at the option of both the lessor and the lessee. The initial tenure of the leases varies from eleven to sixty months. The rental obligations are as follows:

4. The Company''s wholly owned subsidiary (WOS), Essel Packaging (Nepal) Private Limited, had discontinued its operations and disposed off assets and paid off liabilities. The Company in earlier years, has received Rs. 60,000,000 upon reduction of the Subsidiary''s capital, and provided total Rs. 18,996,622 towards diminution in value of Investment and the Management is of the opinion that the realizable value of investment will not be less than its carrying value.

5. Scheme of Merger of Ras Propack Lamipack Limited ("RPLL") and Ras Extrusions Limited ("REL") with the Company

a) Scheme of Merger ("the Scheme") of Ras Propack Lamipack Limited ("RPLL") and Ras Extrusions Limited ("REL") with the Company as part of Modified Scheme was sanctioned by Board for Industrial and Financial Reconstruction ("BIFR") on 10 May 2012 vide summary record of proceedings issued on 28 August 2012. The Scheme became effective on 30 August 2012 and consequently, the entire undertaking of the transferor companies including all assets, liabilities and reserves, vested in the Company on appointed date i.e. 1 April 2011. The Scheme has been given effect to in the financial statements for the year ended 31 March 2012 as per "Pooling of interest" method prescribed under Accounting Standard 14 "Accounting of Amalgamation" and surplus of Rs. 74,690,690, being difference between the value of assets, liabilities and reserves transferred, is adjusted in general reserve.

b) Pursuant to the Scheme, 380,248 and 119,907 equity shares of Rs. 2 each fully paid up have been allotted to the shareholders of RPLL and REL respectively on 14 September 2012.

c) Certain assets and liabilities acquired pursuant to the Scheme are under process of transfer in the name of the company.

6. Provision for custom duty (including interest) of Rs. 86,068,682 (Rs. 152,200,723) is towards possible liability on account of non- fulfilment of export obligations under the "Zero Duty EPGC Scheme" of erstwhile Ras Propack Lamipack Limited ("RPLL") (the merged entity).

During the year, custom duty provision of Rs. 18,783,126 is adjusted in the cost of fixed assets and provision for interest on custom duty provision of Rs. 47,348,915 is written back to the Statement of Profit and Loss and included in other income, to the extent of fulfilment of export obligations by the Company. Related procedural formalities will be completed in due course.

7. FOREIGN EXCHANGE DIFFERENCE

The Companies (Accounting Standards) Amendment Rules, 2011 has amended provisions of AS-11 related to "The Effect of Changes in Foreign Exchanges Rates" vide notification dated 11 May 2011 (as amended on 29 December 2011 and further clarification dated 9 August 2012) issued by The Ministry of Corporate Affairs (MCA). In terms of these amendments,

a) Exchange difference loss (net) of Rs. 54,844,301 (Rs. 18,646,059) is capitalised to cost of fixed assets/capital work in progress.

b) Movement in "Foreign Currency Monetary Item Translation Difference account" (FCMITD) is as under:-

Note: The information has been given in respect of such vendors to the extent they could be identified as "Micro and Small" enterprises on the basis of information available with the Company.

8. GRATUITY AND OTHER POST EMPLOYMENT BENEFIT PLANS

As per Accounting Standard - 15 "Employee Benefits", the disclosures of employee benefits as defined in the Accounting Standard are given below:

a) The Company makes annual contributions to the employees'' gratuity fund scheme, a funded defined benefit plan which is managed by LIC of India. 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) Leave encashment is a non-funded defined benefit scheme. The obligation for leave encashment is recognised in the same manner as gratuity.

Notes:

1. Amount recognised as an expense and included in the Note 22 "Employee benefits expenses" are gratuity Rs. 16,178,281 (Rs. 4,053,970) and leave encashment Rs. 13,964,340 (Rs. 7,759,085)

2. The estimate of future salary increases considered in the actuarial valuation, taking into account rate of inflation, seniority, promotions and other relevant factors, such as supply and demand in the employment market.

3. "Contribution to provident and other funds" is recognised as an expense in note 22 of the statement of Profit and Loss.

ii) Other related parties with whom transactions have taken place during the year and balances outstanding at the year end.

(a) Other Related Parties

Aqualand (India) Limited , Ayepee Lamitubes Limited, Churu Trading Company Private Limited (merged with Sprit Textiles Private Limited w.e.f. 1 October 2012) , Continental Drug Company Private Limited, Essel Corporate Resources Private Limited, Ganjam Trading Company Private Limited, Pan India Paryatan Private Limited, Prajatma Trading Company Private Limited (merged with Sprit Textiles Private Limited w.e.f. 1 October 2012), Rama Associates Limited, Zee Entertainment Enterprises Limited, Sprit Textiles Private Limited.

(b) Directors of the Company

Non-Executive Directors Mr. Subhash Chandra

Mr. Boman Moradian

Mr. K. V. Krishnamurthy (deceased on 16 January 2013)

Mr. Tapan Mitra Mr. Mukund M. Chitale

Executive Director Mr. Ashok Kumar Goel

(Vice-Chairman and Managing Director)

"Major Parties" denotes entries who account 10% or more of the aggregate for that category of transactions. For details of remuneration to directors (refer note 27) and guarantee / security given by related party (Refer Note 5 and 9)

* Churu Trading Company Private Limited and Prajatma Trading Company Private Limited have merged with Sprit Textiles Private Limited w.e.f 1 October 2012

Note:

Loans to others are repayable on demand and hence not considered in the above disclosure requirements. However, interest is charged on terms not prejudicial to the interests of the company.

9. Dividend of Rs. 858,629 (Rs. 968,099) unclaimed for a period of more than seven years is transferred to Investor Education and Protection Fund during the year. There is no amount due and outstanding to be credited to Investor Education and Protection Fund as at 31 March 2013.

10. Service charges include prior period income of Rs. 832,498 (Rs. 15,324,924).

11. Provision for current tax is made as per the provisions of section 115JB (Minimum Alternate Tax) of the Income-Tax Act, 1961 (Act) after considering set-off of brought forward losses and unabsorbed depreciation of the transferor companies as allowed under section 72A of the Act.

12. SEGMENT INFORMATION

The financial statements of the Company contain both the consolidated financial statements as well as the separate financial statements of the parent company. Hence, the company has presented the segment information on the basis of the consolidated financial statements as permitted by Accounting Standard-17.

13. PRIOR PERIOD COMPARATIVES

Previous year''s figures have been regrouped / reclassified wherever necessary to correspond with current year''s classifications / disclosures. Figures in brackets pertains to previous year.


Mar 31, 2012

1. Corporate Information

Essel Propack Limited (hereinafter referred to as 'EPL' or 'the Company') is a producer of plastic packaging material in the form of multilayer collapsible tubes and laminates used primarily for packaging of toothpaste, personal care, cosmetics, pharmaceuticals, household and industrial products.

Nature of security and terms of repayments for long-term borrowings

a) Term loan from banks of Rs. 1,429,669,917 (Rs. 1,543,759,972) are secured by pari passu first charge on fixed assets situated at Vasind, Wada, Murbad, Goa, Nalagarh units. These loans are further secured by way of security provided and guarantee issued by a promoter group Company.

b) Term loan from bank of Rs. 84,375,000 (Rs. 121,875,000) is secured by subservient charge on movable assets situated at Vasind, Wada, Murbad, Goa, Nalagarh units. The loan is further secured by way of security provided and corporate guarantee issued by a promoter group Company.

Term loan from banks carrying interest rate ranging from 13% to 16.50% p.a. and are repayable in monthly / quarterly installments by 2015-16. Charge is yet to be created for term loan from banks of Rs. 399,969,917 (Rs. Nil).

c) Buyers credit from bank of Rs. 58,512,128 (Rs. Nil) is secured by pari passu first charge on fixed assets situated at Vasind, Wada, Murbad, Goa, Nalagarh units and second charge on current assets of the company.

d) Buyers credit from banks of Rs. 38,179,541 (Rs. 35,656,459) are secured by hypothecation of current assets and second charge on fixed assets situated at Vasind, Murbad, Wada, Goa and Nalagarh units.

Buyers credit from banks carrying interest rate ranging from 2.38% to 4.15% p.a. and are repayable in maximum period of three year from the date of transaction. Charge is yet to be created for buyers credit of Rs. 58,512,128 (Rs. Nil).

e) Out of Unsecured term loan and buyers credit from banks Rs. 1,135,504,301, Rs. 707,322,442 (Rs. 665,625,000) are against exclusive charge on land owned and guarantee issued by a promoter group company.

Term loan from banks carrying interest rate ranging from 12.45% to 16.50% p.a. and are repayable in monthly / quarterly installments by 2014-15. Buyers credit carrying interest rate ranging from 2.24% to 4.04 % p.a. and are repayable in maximum period three years from the date of transaction.

f) Deferred sales tax interest free loans are repayable after a period of 10 to 14 years upto 2024-25.

1. Capital and other commitments

Estimated amount of contracts remaining to be executed on capital account, not provided for (net of advances) Rs. 265,249,641 (Rs. 120,229,324)

2. Contingent Liabilities not provided for

(Amount in Rs.)

2012 2011

a) Unexpired Letters of Credit (net of liability provided) 260,288,175 63,951,109

b) Guarantees and counter guarantees given by the Company [includes 5,148,597,625 4,909,534,605 Rs. 5,133,821,625 (Rs. 4,897,618,605) for loans taken by Subsidiaries]. Loans outstanding against these guarantees are Rs. 2,788,793,162 (Rs. 3,575,862,493)

c) Disputed Indirect Taxes * 276,118,838 274,559,769

d) Disputed Direct Taxes 28,805,069 18,467,097

e) Claims not acknowledged as debts 3,331,550 3,556,550

f) Deferred Sales Tax Liability assigned 84,496,517 112,609,023

g) Duty benefit availed under EPCG scheme, pending export obligations 117,430,117 88,214,189

* Does not include disputed excise duty of Rs. 198,191,799 (Rs. 198,191,799) for alleged undervaluation in inter unit transfer of Web, for captive consumption as it does not have significant impact on profits of the Company since excise duty paid by one unit is admissible as Cenvat credit at other unit. Further, the appeal filed by Excise Department against the decision (in Company's favour) of High Court is pending before Supreme Court.

3. Managerial remuneration

b) During the year, the Company has paid commission of Rs. 3,600,000 (Rs. 4,125,000) to Non-Executive Independent Directors based on the Profits for the year ended 31 March 2011.


Mar 31, 2010

1) b) Contingent Liabilities not provided for

(Amount in Rs.)

Sr. No. Particulars As at As at

31-Mar-2010 31-Dec-2008

a) Unexpired Letters of Credit 24,903,527 17,532,064

b) Guarantees and counter guarantees given by the Company [includes Rs.4,619,879,977 (Rs.6,230,497,924) for loans taken by Subsidiaries]. Loans outstanding against these guarantees are Rs. 3,643,691,169 (Rs. 4,913,293,952) 4,660,722,516 6,331,124,474

c) Disputed Indirect Taxes* 244,789,742 166,253,616

d) Disputed Direct Taxes 72,838,393 49,784,919

e) Claims not acknowledged as debts 3,556,550 3,556,550

f) Deferred Sales Tax Liability assigned 144,937,480 180,319,450

g) Duty benefit availed under EPCG scheme, pending export obligations 59,213,138 65,793,947

* Does not include Rs.198,191,799 (Rs.198,191,799) for alleged undervaluation in inter unit transfer of Web, for captive consumption as it does not have significant impact on profits of the Company since excise duty paid by one unit is admissible as Cenvat credit at other unit. Further,the appeal filed by Excise Department against the decision (in Companys favour) of High Court is pending before Supreme Court.

2) Investments

a) Essel Packaging Nepal Private Limited

The Companys wholly owned subsidiary (WOS), Essel Packaging (Nepal) Private Limited, had discontinued its operation and disposed its assets and paid off its liabilities. The Company had received Rs. 40,000,000 upon reduction of the Subsidiarys capital,and provided Rs.16,996,622 towards diminution in value of Investment in earlier years. In 2008, the WOS made an application to concerned authorities for further reduction of capital by 50% (NPR 32,000,000 equivalent to Rs.20,000,000) and repayment thereof to shareholders. Pursuant to approval, the Company has received Rs. 20,000,000 during the current period.

The Management is of the opinion that the realizable value of balance Investment will not be less than its carrying value.

b) Bericap India Private Limited

In accordance with the terms of agreement with Bericap Holding Gmbh and Bericap India Private Limited, the Company had in December, 2008 exercised the Put option for sale and transfer of 3,141,971 equity shares held by the Company in Bericap India Private Limited to Bericap Holding Gmbh. The transfer of shares has been effected and money received during the period.

c) In the year 2007, the Company had consented to act as Co-promoter in the rehabilitation and revival scheme of RAS Propack Lamipack Limited (RPLL) and RAS Extrusion Limited (REL), before the Board for Industrial and Financial Reconstruction (BIFR), New Delhi. Pursuant to the BIFR orders dated February 6,2009 and February 17,2009 the Company

i) made an investment of Rs.41,091,000 in Equity shares and Rs.30,000,000 as unsecured loans to RPLL during the period.

ii) made an investment of Rs.7,500,000 in Equity shares and Rs. 15,000,000 as unsecured loans to REL, subsequent to March 31, 2010.

3) a) The Companies (Accounting Standards) Amendment Rules 2009 has amended the provision of AS-11 related to Effects of the changes in Foreign Exchange Rates. Accordingly, the Company has adjusted exchange difference gain of Rs. 5,650,224 (net of Tax Rs.2,810,413) through General Reserve pertaining to earlier periods and exchange difference loss of Rs. 126,096,690 is transferred to Foreign Currency Monetary Item Translation Difference Account to be amortised over the balance period of such long term assets/liabilities. Out of the above, Rs. 37,594,721 has been written off in the current year and Rs. 80,041,332 has been carried over.

4) During the period,ancillary costs for arrangement of borrowings are amortised over the period of borrowings instead of expensed when incurred. Accordingly, Profit before Tax for the period is higher by Rs.37,079,803. This change is as permitted under AS 16 on "Borrowing Costs"

5) During the period with the implementation of ERP software cost formulae for valuation of inventories is changed to Moving Weighted Average basis instead of First in First out (FIFO). Impact of this change on Profit before Tax is not determinable.

6) As per Accounting Standard - 15 "Employee Benefits" the disclosures of employee benefits as defined in the Accounting Standard are given below:

The employees gratuity fund scheme managed by LIC 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. The obligation for leave encashment is recognised in the same manner as gratuity.

7) a) Capital Work In Progress includes Capital advances of Rs.124,577,517 (Rs. 43,753,974)

b) Sundry Creditors for others include cheques overdrawn to the tune of Rs. Nil (Rs.41,044,439) which are since presented and paid.

8) Related Party Disclosure

i) List of Parties where control exists a) Subsidiary Companies

* These subsidiaries have discontinued their operations and are in the process of liquidation.

* These Companies ceased to be Subsidiaries w.e.f. December 23, 2009 following sale by Companys overseas Subsidiaries of their shareholding in these Companies.

ii) Other Related parties with whom transactions have taken place during the period and balances outstanding at the year- end.

a) Other Related Parties

Ayepee Lamitubes Limited,BriggsTrading Company Private Limited,ChuruTrading Company Private Limited, Continental Drug Company Private Limited, Pan India Network Infravest Private Limited, Essel Corporate Resources Private Limited, Ganjam Trading Company Private Limited, Pan India Paryatan Private Limited, Premier Finance and Trading Company Limited, Prajatma Trading Company Private Limited.

b) Directors of the Company

Non-Executive Directors Mr.Subhash Chandra

Mr.Boman Moradian

Mr.Dev Ahuja

Mr.K.V.Krishnamurthy

Mr.Tapan Mitra

Mr. Mukund M. Chitale

Executive Director Mr. Ashok Kumar Goel

(Vice-Chairman & Managing Director)

9) Financial Statements of Subsidiary Companies

The Ministry of Corporate Affairs, Government of India vide its order no.47/289/2010-CL-lll dated June 21, 2010 issued under section 212(8) of the Companies Act, 1956 ("The Act") has exempted the Company from attaching the Balance Sheets and Profit and Loss Accounts of its subsidiaries under section 212(1) of the Act. As per the orders, key details of each subsidiary are attached along with statements under section 212 (1) of the Act.

10) Secured Loans

i) Term loans amounting to Rs.2,512,611,625 are secured by pari passu first charge on Companys fixed assets situated at Vasind,Wada,Murbad, Goa and Nalagarh units and further by security provided and guarantees issued by group companies.

ii) Term loan amounting to Rs.150,000,000 is secured by subservient charge on Companys movable fixed assets situated at Vasind, Wada, Murbad, Goa and Nalagarh units, both present and future and further by security provided and corporate guarantee issued by a group company.

iii) Term loans repayable within one year Rs.1,007,340,450 (Rs.97,500,000)

iv) Working Capital loan is secured by hypothecation of current assets of the Company and second charge on fixed assets of the Companys units situated atVasind,Wada, Murbad, Goa and Nalagarh.

11) Unsecured Loans

i) Short Term Loan from Banks includes Rs.500,000,000 (Rs.400,000,000) which is against letter of comfort issued by a group company

ii) Other Loans from Banks of Rs.830,000,000 (Rs.Nil) which is against security and guarantee issued by a group company

iii) Repayable within one year Rs.192,500,000 (Rs.97,500,000)

12) Comparatives

a) Pursuant to the approval of the Board of Directors at its meeting held on October 28,2009 the Companys current accounting year has been aligned with the fiscal year of the Goverment. Hence the current years financial statements are in respect of the fifteen months period from January 1,2009 to March 31,2010. Previous year figures relate to the twelve months ended December 31,2008. Current years figures are accordingly, not comparable with those of the previous year.

b) Previous year figures are regrouped, rearranged or recast wherever necessary to confirm to this years classification. Figures in brackets pertain to previous year.

13) Segment Reporting

Under AS-17,the Company has only one major identifiable business segment viz. Plastic packaging material.









 
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