Home  »  Company  »  Greenply Industr  »  Quotes  »  Notes to Account
Enter the first few characters of Company and click 'Go'

Notes to Accounts of Greenply Industries Ltd.

Mar 31, 2015

1.1 Terms/Rights attached to the Equity Shares

The Company has only one class of equity Shares having a par value of Rs. 5 per share. Each holder of equity shares is entitled to one vote per share. The Company declares and pays dividends in Indian rupees. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting.

During the year, the amount of per share dividend recognized as distribution to equity shareholders was Rs. 3 (Previous year Rs. 3)

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

In the current year, the above information is furnished taking into consideration the fact whether or not the beneficial ownership is reflected in the records of the Depository. In the previous year the above information was furnished taking into consideration the beneficial ownership of shares as informed to the Company and the Registrar of Companies through filing of requisite forms.

1.2 The Company has not reserved any shares for issue under options and contracts/commitments for the sale of shares/disinvestment.

1.3 The Company for the period of five years immediately preceding the date of Balance Sheet has not:

i. Allotted any class of shares as fully paid pursuant to contract(s) without payment being received in cash.

ii. Allotted fully paid up shares by way of bonus shares.

iii. Bought back any class of shares.

2.1 Term Loan from Landesbank Baden-Wurttenberg of Rs. 3974.16 Lacs is secured by first priority security charge on Main Press Line of MDF plant. Subject to Note no. 32.2.7, Other Term Loans of Rs. 13113.07 Lacs are secured by first mortgage and charge on the immovable and movable properties of the company other than immovable properties at Tizit, Nagaland and Main Press line of MDF plant, ranking on pari passu basis, save and except current assets, both present and future and second charge over the current assets.

2.2 Secured Deferred payment liabilities are in respect of finance of vehicles, secured by hypothecation of the respective vehicles.

3.1 Company''s Plywood & MDF units located at Pantnagar (Uttarakhand) are exempt from levy of Central Excise Duty. Company''s Plywood unit located at Tizit (Nalagand) is entitled to refund of Central Excise Duty paid after availing input credits. The Central Excise Duty debited to Statement of Profit & Loss is net of refund received Rs. 1365.62 Lacs (Previous year Rs. 899.40 Lacs).

3.2 Central Excise Duty includes Rs. 2.87 Lacs (Previous year Rs. 32.23 Lacs) paid on account of differential excise duty for earlier years.

3.3 Manufactured goods consumed for own use is accounted for at selling price. However, no adjustment for profit element included in such goods was required as the Company neither had the stocks of such transferred goods nor finished goods manufactured by further processing of the same, at year end.

4.1 Disclosures Regarding Employee Benefits

i) Defined Contribution Plan: Employee benefits in the form of Provident Fund is considered as defined contribution plan and the contributions to Employees'' Provident Fund Organisation established under The Employees'' Provident Fund and Miscellaneous Provisions Act 1952 is charged to the Statement of Profit and Loss of the year when the contributions to the respective funds are due.

ii) Defined Benefit Plan: Retirement benefits in the form of Gratuity are considered as defined benefit obligations and is provided for on the basis of third party actuarial valuation, using the projected unit credit method, as at the date of the Balance Sheet. Every Employee who has completed five years or more of service is entitled to Gratuity on terms not less favourable than the provisions of The Payment of Gratuity Act, 1972. As the Company has not funded its liability, it has nothing to disclose regarding plan assets and its reconciliation.

4.2 The prior period income & expenses have arisen in the current year as a result of inadvertent errors or omissions in the preparation of Financial Statements of one or more prior periods.

5. EXCEPTIONAL ITEMS

Gain of Rs. 1575.53 Lacs comprises of refund of Central Excise Duty due to the Company as per Order dated November 20, 2014 of The Gauhati High Court. The refund is related to the Tizit Plywood Unit of the Company for Financial Years 2008-09 to 2013-14.

6. contingent liabilities and

COMMITMENTS

6.1 Contingent liabilities

6.1.1 Pending Litigations:

a. Excise Duty, Sales Taxes and other Indirect Taxes claims disputed by the Company relating to issues of applicability and determination aggregating Rs. 7386.01 Lacs (Previous year Rs. 20922.69 Lacs).

b. Income Tax demand disputed by the Company relating to issues of applicability aggregating Rs. 8.94 Lacs (Previous year Rs. Nil).

c. Local Authority Taxes claims disputed by the Company relating to issues of applicability and determination aggregating Rs. 802.20 Lacs (Previous year Rs. 27.22 Lacs)

d. Claims against the Company not acknowledged as debts Rs. 63.94 Lacs (Previous year Rs. 68.82 Lacs).

Notes:

i) Based on the discussion with the solicitors/ favourable decisions in similar cases/legal opinion taken by the Company, the management believes that the Company has a good chance of success in above mentioned cases and hence, no provision there against is considered necessary.

ii) The company does not expect any reimbursements in respect of the above contingent liabilities.

iii) Future cash outflows in respect of the above are determinable only on receipt of judgements/decisions pending with various forums/authorities.

6.1.2 Others:

a. Letter of credit established but material not received amounting to Rs. 3219.41 Lacs (Previous year Rs. 4805.63 Lacs).

b. Guarantee given to Banks in respect of loans to its erstwhile wholly-owned subsidiary USD Nil(Previous Year USD 80,00,000) and SGD 2,51,36,000 (Previous Year SGD 22,36,000) equivalent to Rs. 11496.90 Lacs (Previous Year Rs. 5855.19 Lacs), translated at year-end exchange rate. It is under process to transfer to the Resulting Company pursuant to the Scheme of Arrangement.

c. In respect of capital goods imported at the concessional rate of duty under the Export Promotion Capital Goods Scheme, the Company has an export obligation of approximately Rs. 9569.91 lacs (previous year Rs. 15740.03 lacs), which is required to be met at different dates, before 10.04.2019 (previous year 20.02.2020). In the event of non-fulfillment of the export obligation, the Company willbe liable to pay customs duties of approximately Rs. 1197.60 lacs (Previous Year Rs. 2225.95 lacs) together with interest, as applicable. The Company has discharged export obligation amounting to Rs. Nil during the year ended March 31, 2015.

6.2 Commitments

a. Estimated amount of contracts remaining to be executed on capital account and not provided for (Net of advances) Rs. 308.44 Lacs (Previous year Rs. 3389.08 Lacs)

b. Uncalled liability on shares and other investments which are partly paid Rs. NIL (Previous year Rs. NIL)

c. Other commitments Rs. NIL (Previous year Rs. NIL)

7. Balances under Trade receivables, Trade Payables, Loans and Advances payable or receivable are subject to confirmation to be received from some of the parties.

8. SCHEME OF ARRANGEMENT

8.1 Pursuant to the Scheme of Arrangement ("the scheme") between Greenlam Industries Ltd. (Greenlam), the Company and their respective shareholders and creditors as approved by the High Court of Gauhati vide its order dated October 31, 2014, which became effective on November 17, 2014 on filing with the Registrar of Companies, all the assets and liabilities of the Decorative Business (i.e. business and interests in manufacture of laminates and decorative veneers) of the company have been transferred to and vested in Greenlam at their respective book values on a going concern basis with effect from the appointed date (i.e. April 1, 2013). Accordingly, the Scheme of Arrangement has been given effect to in these accounts.

8.2.3 Greenlam to issue and allot equity shares to the shareholders of the Company whose names appear in the register of members of the Company as on the record date, 1 (one) equity share of Rs. 5 (Indian Rupees five only) each in Greenlam credited as fully paid up for every 1 (one) equity share of Rs. 5 (Indian Rupees five only) each held by them in the Company. Consequent to the allotment of new shares as per the scheme, Current Investment of the Company of Rs. 5 Lacs has been cancelled and Greenlam has ceased to be subsidiary of the Company.

8.2.4 The net profit of Demerged Decorative Business of the Company for the period from the appointed date i.e. April 1,2013 to March 31, 2014, Rs. 3718.59 Lacs, is adjusted in Surplus, i.e. balance in the Statement of Profit and Loss.

8.2.5 The transactions pertaining to the Decorative Business of the Company from the appointed date upto the effective date of the scheme of arrangement have been deemed to be made by Greenlam.

8.2.6 All costs, charges and expenses including stamp duties arising out of or incurred so far in carrying out and implementing this Scheme and matters incidental thereto, have been borne by the Company and Greenlam in the ratio of 2:1.

8.2.7 As per the Scheme of Arrangement approved by the HonRs.ble Gauhati High Court, the immovable assets of the Company stands freed from all charges, mortgages and encumbrances relating to liabilities relating to Decorative Business which stands transferred to Greenlam. But, the Company had created charges over its immovable assets (including those which now belong to Greenlam) under section 125 of the Companies Act, 1956 in respect of certain credit facilities taken from various banks for itself and for various undertakings of Greenlam. As the legal ownership of the immovable assets of Greenlam have not yet been transferred to them, the Company continues to enjoy credit facilities by the subsisting charges, mortgages and encumbrances over such assets. Vice-versa, Greenlam enjoys credit facilities by the subsisting charges, mortgages and encumbrances over immovable assets retained by the Company. Till creation/modification/satisfaction of Charges, as the case may be, in favour of the various banks/secured creditors of the respective Companies in terms of the applicable provisions of the Companies Act, 2013, the banks/secured creditors of the Company shall continue to hold their respective charge over the immovable assets of Greenlam.

Laminate & Allied Products: The Segment is engaged in the business of manufacturing of Laminates, decorative veneers, compact laminates and other allied products through its wholesale and retail network.

Medium Density Fibre Boards & Allied Products: The Segment is engaged in the business of manufacturing of Medium Density Fibre Boards and other allied products through its wholesale and retail network.

b) Segment Assets and Liabilities :

All Segment Assets and liabilities are directly attributable to the segment. Segment assets include all operating assets used by the segment and consist principally of fixed assets, inventories, sundry debtors, advances and operating cash and bank balances. Segment assets and liabilities do not include share capital, reserves and surplus, borrowings, proposed dividend and income tax (both current and deferred).

c) Segment Revenue and Expenses :

Segment revenue and expenses are directly attributable to the segment. It does not include dividend income, profit on sale of investments, interest income, interest expense, other expenses which cannot be allocated on a reasonable basis and provision for income tax (both current and deferred). ''Unallocated Expenses net of Unallocable Income'' include Corporate Expenses which cannot be allocated on a reasonable basis and exceptional items.

9. RELATED PARTY DISCLOSURES AS PER ACCOUNTING STANDARD AS - 18

9.1 List of related parties and relationship:

a) Related parties where control exists Subsidiary Companies

i) Greenply Industries (Myanmar) Pvt Ltd

ii) Greenply Trading Pte. Ltd.

iii) Greenlam Industries Ltd. (ceased to be a subsidiary w.e.f. 01.04.2014 pursuant to Scheme of Arrangement)

iv) Greenlam Asia Pacific Pte. Ltd. (ceased to be a subsidiary w.e.f. 01.04.2014 pursuant to Scheme of Arrangement)

v) Greenlam America, Inc. (ceased to be a subsidiary w.e.f. 01.04.2014 pursuant to Scheme of Arrangement)

vi) Greenlam VT Industries Pvt Ltd (ceased to be a subsidiary w.e.f. 01.04.2014 pursuant to Scheme of Arrangement)

vii) Greenlam Europe (UK) Ltd. (ceased to be a subsidiary w.e.f. 01.04.2014 pursuant to Scheme of Arrangement)

viii) Greenlam Asia Pacific (Thailand) Co. Ltd. (ceased to be a subsidiary w.e.f. 01.04.2014 pursuant to Scheme of Arrangement)

ix) Greenlam Holding Co. Ltd. (ceased to be a subsidiary w.e.f. 01.04.2014 pursuant to Scheme of Arrangement)

x) Pt. Greenlam Asia Pacific (ceased to be a subsidiary w.e.f. 01.04.2014 pursuant to Scheme of Arrangement) Company in which a Subsidiary is a Joint Venture Partner

i) Greenply Alkemal (Singapore) Pte Ltd (Investment through Subsidiary Greenply Trading Pte Ltd w.e.f. 14.05.2014)

b) Related parties with whom transactions have taken place during the year.

Key Management Personnel / Director

i) Mr. Shiv Prakash Mittal, Executive Chairman

ii) Mr. Rajesh Mittal, Managing Director

iii) Mr. Shobhan Mittal, Joint Managing Director & CEO w.e.f. 05.02.2015 (Executive Director upto 04.02.2015)

iv) Mr. Saurabh Mittal, Joint Managing Director & CEO (upto 10.11.2014)

v) Mr. Susil Kumar Pal, Independent Director

vi) Mr. Vinod Kumar Kothari, Independent Director

vii) Mr. Anupam Kumar Mukerji, Independent Director

viii) Mr. Upendra Nath Challu, Independent Director

ix) Ms. Sonali Bhagwati Dalal, Independent Director

x) Mr. Moina Yometh Konyak, Non-Executive Director

xi) Mr. V. Venkatramani, Chief Financial Officer

xii) Mr. Kaushal Kumar Agarwal, Company Secretary

Enterprises Owned/Influenced by Key Management Personnel or their relatives

i) Himalaya Granites Ltd.

ii) Prime Holdings Pvt Ltd.

iii) S.M.Management Pvt Ltd.

iv) Prime Properties Pvt Ltd.

v) Trade Combines

vi) Greenlam Industries Ltd.

vii) Greenlam Asia Pacific Pte. Ltd.

viii) R S Homcon Ltd.

Relatives of Key Management Personnel

i) Mrs. Parul Mittal (Wife of Mr. Saurabh Mittal)

ii) Mrs. Chitwan Mittal (Wife of Mr. Shobhan Mittal)

iii) Mrs. Surbhi Poddar (Daughter of Mr. Rajesh Mittal)

iv) Mr. Sanidhya Mittal (Son of Mr. Rajesh Mittal)

9.3 Investments by the loanee in the shares of the parent Company and its subsidiary companies, when the Company has made a loan or advance in the nature of loan Rs. NIL (Previous Year Rs. NIL) Notes : Related Party Relationship is as identified by the Company and relied upon by the Auditors.

10. fluctuation in long term foreign

CURRENCY MONETARY ITEMS

The Company has exercised the option available to it under Rule 46A of the Companies (Accounting Standards) (Second Amendment) Rules, 2011 in respect of accounting for fluctuations in foreign exchange relating to "Long Term Foreign Currency Monetary Items". Accordingly, it has adjusted a gain of Rs. 746.10 Lacs (Previous year loss of Rs. 1885.52 Lacs) during the period to the cost of its fixed assets on account of such difference arising during the current period and has provided for depreciation thereon over the balance useful life of the respective assets. Consequently, the charge to the Statement of Profit and Loss is effected to that extent.

11. TAXATION

The Company''s management is of the opinion that its international and domestic transactions are at arm''s length as per the independent accountants report for the year ended March 31, 2014. Management continues to believe that its international and domestic transactions post March 2014 and that the transfer pricing legislation will not have any impact on these financial statements, particularly on amount of tax expense and that of provision for taxation.

12. DEPRECIATION

In accordance with the provisions of the Companies Act 2013, effective from April 1,2014, the Company has reassessed the remaining useful lives of its fixed assets prescribed by Schedule II to the Act or actual useful life of assets, whichever is lower. In case of any asset whose life has completed as above, the carrying value, net of residual value of Rs. 966.18 Lacs, as at April 1, 2014 has been adjusted to the Surplus in the Statement of Profit & Loss and in other cases the carrying value has been depreciated over the remaining of the revised life of the assets and recognized in the Statement of Profit and Loss.

13. The figures stated in the previous period are inclusive of figures of Decorative Business of the Company which have been demerged with effect from the appointed date (i.e. April 1,2013), the accounting effect of which has been given in current year, and as such current year''s figures are not comparable.

14. The figures for the previous period are re- classified/ re-arranged / re -grouped, wherever necessary so as to be in conformity with the figures of the current period''s classification/ disclosure.


Mar 31, 2014

1.1 The Central Excise Duty debited to Profit and Loss Account is net of refund received Rs.899.40 lacs (Previous year Rs.1751.68 lacs) including Rs. Nil (Previous year Rs.889.07 lacs) for earlier years. This refund is on account of exemption equivalent to the excise duty payable on value addition carried out by the Tizit unit and additional sums as per an interim order of the Hon''ble Guwahati High Court.

1.2 Company''s both the units at Rudrapur (Uttarakhand) and its unit at Nalagarh (Himachal Pradesh) are exempt from levy of Central Excise Duty.

1.3 Central Excise Duty includes Rs.32.23 lacs (Previous yearRs.89.11 lacs) paid on account of differential excise duty for earlier years.

2.1 Disclosures Regarding Employee Benefits

Defined Contribution Plan: Employee benefits in the form of Provident Fund and ESIC are considered as defined contribution plan and the contributions to Employees'' Provident Fund Organisation established under The Employees'' Provident Fund and Miscellaneous Provisions Act, 1952 and Employees'' State Insurance Act, 1948, respectively, are charged to the Profit and Loss Account of the year when the contributions to the respective funds are due. Defined Benefit Plan: Retirement benefits in the form of Gratuity are considered as defined benefit obligations and are provided for on the basis of third party actuarial valuation, using the projected unit credit method, as at the date of the Balance Sheet. As the Company has not funded its liability, it has nothing to disclose regarding plan assets and its reconciliation. Defined Benefit Obligation at the year end amounted to Rs.1252.84 lacs (previous year Rs.1046.36 lacs).

The estimates of rate of escalation in salary considered in actuarial valuation, take into account inflation, seniority,

promotion and other relevant factors including supply and demand in the employment market.

The above information is certified by the actuary.

Para 132 of Accounting Standard 15 (revised 2005) does not require any specific disclosures except where expense resulting from compensated absence is of such size, nature or incidence that its disclosure is relevant under Accounting Standard 5 or Accounting Standard 18. In the opinion of the management the expense resulting from compensated absence is not significant and hence no disclosures are prepared under various paragraphs of AS 15 (revised 2005).

3. CONTINGENT LIABILITIES AND COMMITMENTS

3.1 Capital Commitments

a. Estimated amount of contracts remaining to be executed on capital account and not provided for (Net of advances) Rs.3389.08 lacs (Previous year Rs.1334.66 lacs).

b. Uncalled liability on shares and other investments which are partly paid Rs. NIL (Previous year Rs. NIL)

c. Other commitments Rs. NIL (Previous year Rs. NIL)

3.2 Contingent liabilities

a. Counter-Guarantees given to banks for bank guarantees'' established Rs.226.94 lacs (Previous year Rs.370.57 lacs).

b. Counter-Guarantees given to banks for Stand-by Letter of Credit (SBLC) facility Rs.1796.70 lacs (Previous Year Rs.1650 lacs). Outstanding amount of Overdraft limit availed by Greenlam America Inc. and Greenlam Asia Pacific Pte. Ltd. against SBLC facility is USD 19,40,000 and USD 10,00,000 respectively equivalent to Rs.1760.77 lacs (Previous yearRs.1597.01 lacs) translated at year-end exchange rate.

c. Letter of credit established but material not received amounting to Rs.4805.63 lacs (Previous year Rs.5276.21 lacs).

d. Guarantee/Letter of Assurance given to Banks for Bills discounting facilities (Channel Financing) -Rs.6200 lacs (Previous Year Rs.5000 lacs) and outstanding amount under this Bills Discounting facility — Rs.4333.08 lacs (Previous year Rs.4119.89 lacs)

e. Claims against the Company not acknowledged as debts - Rs.68.82 lacs (Previous year - Rs.72.91 lacs)

f. Disputed Demand of Statutory Dues in Appeal Rs.4158.07 lacs (Previous yearRs.881.31 lacs).

g. Amounts covered by Show cause notices received from Excise & other Government Authorities Rs.11623.33 lacs (Previous Year Rs.8783.20 lacs).

h. Amounts covered by Departmental appeals against orders in favour of the Company Rs.5168.51 lacs (Previous Year Rs.11.06 lacs ).

i. Guarantee given to Banks in respect of loans to its wholly owned subsidiary US Dollar 80,00,000 (Previous Year US Dollar 10,000,000) and Singapore Dollar 22,36,000 (Previous Year Singapore Dollar 14,00,000) equivalent to Rs.5855.19 lacs (Previous Year Rs.6040 lacs), translated at year-end exchange rate.

j. In respect of capital goods imported at the concessional rate of duty under the Export Promotion Capital Goods Scheme, the Company has an export obligation of approximately Rs.15740.03 lacs (previous year Rs.13985.32 lacs), which is required to be met at different dates, before 20.02.2020 (previous year 10.04.2019). In the event of non-fulfilment of the export obligation, the Company will be liable to pay customs duties of approximately Rs.2225.95 lacs (Previous Year Rs.1748.17 lacs) together with interest, as applicable.

4. Balances under Trade receivables, Trade Payables, Loans and Advances payable or receivable are subject to confirmation to be received from some of the parties.

5 DISCONTINUING OPERATIONS:

5.1 The Company''s Board of Directors at its meeting held on 30th September, 2013 approved a "Composite Scheme of Arrangement", under sections 100 to 104 and 391 to 394 of the Companies Act, 1956 or any statutory modification or re-enactment thereof read with the applicable provisions of the Companies Act, 2013 ("the Act"), for demerging its "Decorative Business" on a going concern basis to the newly formed subsidiary company, namely, M/s. Greenlam Industries Limited (Greenlam). The Decorative Business comprises of manufacturing and marketing of high pressure laminates, decorative veneers, compact laminates and allied product(s) which is reported as a separate segment viz., "Laminates and Allied Products" as per AS 17- Segment Reporting and presently, it consists of manufacturing units situated at Behr or (Rajasthan) and Nalagarh (Himachal Pradesh), marketing, branch and administrative office(s) located in India and subsidiaries/step-down subsidiaries viz. Greenlam Asia Pacific Pte. Limited (registered in Singapore), Greenlam America, Inc. (registered in USA), Greenlam Europe (UK) Limited (registered in UK), Greenlam Asia Pacific (Thailand) Co. Limited (registered in Thailand), Greenlam Holding Co. Limited (registered in Thailand), PT. Greenlam Asia Pacific (registered in Indonesia) and Greenlam VT Industries Private Limited (registered in India), hereinafter referred to as the "Demerged Undertaking". Upon the Scheme becoming effective and in consideration of the demerger and transfer of the Demerged Undertaking, Greenlam shall, without further application, issue and allot to the shareholders of Greenply whose names appear in the register of members of Greenply as on the Record Date, 1 (One) equity share of INR 5.00 (Indian Rupees Five only) each in Greenlam, credited as fully paid up for every 1 (One) equity share of INR 5O0 (Indian Rupees Five only) each held by them in Greenply. Upon issue of the new equity shares by Greenlam to the shareholders of Greenply in terms of this Scheme, all existing equity shares held by the existing shareholders of Greenlam, shall stand cancelled, without any further act or deed. The reduction of capital of Greenlam pursuant to this Scheme shall be given effect as an integral part of the Scheme and the consent given to the Scheme by the shareholders and the creditors of Greenlam shall be deemed to be their consent under the provisions of Section 100 and all other applicable provisions of the Act to such reduction of capital of Greenlam and Greenlam shall not be required to convene any separate meeting for that purpose. The order of the Hon''ble Guahati High Court sanctioning the Scheme shall be deemed to be an Order under Section 102 of the Act.

Currently, after receipt of the approval of the scheme from the National Stock Exchange of India Limited and BSE Limited, the Company has sought approval of the scheme from the Hon''ble Gauhati High Court which is pending for disposal. It proposes to comply with other regulatory approvals and compliances in course of time by 31st March, 2015.

Pending approval of the High Court and other regulatory compliances, the Company has undertaken to carry on the business of the Demerged Undertaking in the ordinary course of business for and on account of and in trust for Greenlam. All incomes and profits accruing to Greenply (including taxes paid thereon) or expenses and losses arising or incurred by it relating to the Demerged Undertaking for the period falling on and after the Appointed Date till the Effective date, shall for all purposes, be treated as the incomes, profits (including taxes paid) or expenses and losses, as the case may be of Greenlam.

a) Business Segments :

A description of the types of products and services provided by each reportable segment is as follows:

Plywood & Allied Products: The Segment is engaged in the business of manufacturing and trading of Plywood, block boards, veneer, doors and other wood panel products through its wholesale and retail network.

Laminate & Allied Products: The Segment is engaged in the business of manufacturing of Laminates, decorative veneers, compact laminates and other allied products through its wholesale and retail network.

Medium Density Fibre Boards & Allied Products: The Segment is engaged in the business of manufacturing of Medium Density Fibre Boards and other allied products through its wholesale and retail network.

b) Segment Assets and Liabilities :

All Segment Assets and liabilities are directly attributable to the segment. Segment assets include all operating assets used by the segment and consist principally of fixed assets, inventories, sundry debtors, advances and operating cash and bank balances. Segment assets and liabilities do not include share capital, reserves and surplus, borrowings, proposed dividend and income tax (both current and deferred).

c) Segment Revenue and Expenses :

Segment revenue and expenses are directly attributable to the segment. It does not include dividend income, profit on sale of investments, interest income, interest expense, other expenses which cannot be allocated on a reasonable basis and provision for income tax (both current and deferred).

6. RELATED PARTY DISCLOSURES AS PER ACCOUNTING STANDARD AS - 18 32.1 List of related parties and relationship:

a) Related parties where control exists Subsidiary Companies

i) Greenlam Asia Pacific Pte. Ltd.

ii) Greenlam America, Inc.

iii) Greenply Industries (Myanmar) Pvt Ltd

iv) Greenply Trading Pte. Limited

v) Greenlam Industries Limited

vi) Greenlam VT Industries Pvt Ltd

vii) Greenlam Europe (UK) Ltd.

viii) Greenlam Asia Pacific (Thailand) Co. Ltd.

ix) Greenlam Holding Co. Ltd.

x) Pt. Greenlam Asia Pacific

b) Related parties with whom transactions have taken place during the year. Key Management Personnel

i) Mr. Shiv Prakash Mittal, Executive Chairman ii) Mr. Rajesh Mittal, Managing Director iii) Mr. Saurabh Mittal, Jt. Managing Director & CEO iv) Mr. Shobhan Mittal, Executive Director

Enterprises Owned/Influenced by Key Management Personnel or their relatives

i) Himalaya Granites Ltd.

ii) Prime Holdings Pvt Ltd.

iii) S.M.Management Pvt Ltd.

iv) Prime Properties Pvt Ltd.

v) Trade Combines

Relative of Directors

i) Mrs. Parul Mittal (Wife of Mr. Saurabh Mittal)

ii) Mrs. Chitwan Mittal (Wife of Mr. Shobhan Mittal)

iii) Ms. Surbhi Mittal (Daughter of Mr. Rajesh Mittal)

7. INFORMATION REGARDING MICRO, SMALL AND MEDIUM ENTERPRISES

As at 31st March, 2014, no supplier has intimated the Company about its status as Micro or Small enterprises or its registration with the appropriate authority under Micro, Small and Medium Enterprises Act, 2006. So, no disclosure is made. The Company has compiled this information based on the current information in its possession.

8. ACCOUNTS OF SUBSIDIARY COMPANIES

The accounts of the subsidiary companies are not attached herewith as the Board of Directors of the Company resolved to avail the general exemption granted by the Ministry of Corporate Affairs, Government of India vide its Circular no.2 / 2011 dated 8th February, 2011.


Mar 31, 2013

1.1 Disclosures Regarding Employee Benefits

Defined Contribution Plan: Employee benefits in the form of Provident Fund and ESIC are considered as defined contribution plan and the contributions to Employees'' Provident Fund Organisation established under The Employees'' Provident Fund and Miscellaneous Provisions Act, 1952 and Employees'' State Insurance Act, 1948, respectively, are charged to the Profit and Loss Account of the year when the contributions to the respective funds are due.

Defined Benefit Plan: Retirement benefits in the form of Gratuity are considered as defined benefit obligations and are provided for on the basis of third party actuarial valuation, using the projected unit credit method, as at the date of the Balance Sheet. As the Company has not funded its liability, it has nothing to disclose regarding plan assets and its reconciliation. Defined Benefit Obligation at the year end amounted to Rs. 1046.36 lacs (previous year Rs. 791.80 lacs).

2. CONTINGENT LIABILITIES AND COMMITMENTS

2.1 Capital Commitments

Estimated amount of contracts remaining to be executed on capital account and not provided for (Net of advances) Rs. 1334.66 lacs (Previous year Rs. 463.45 lacs).

2.2 Contingent liabilities

a. Counter-Guarantees given to banks for bank guarantees'' established Rs. 370.57 lacs (Previous year Rs. 420.13 lacs).

b. Counter-Guarantees given to banks for Stand-by Letter of Credit (SBLC) facility Rs. 1650 lacs (Previous Year Rs. Nil). Outstanding amount of Overdraft limit availed by Greenlam America Inc. and Greenlam Asia Pacific Pte. Ltd. against SBLC facility is USD 20,00,000 and USD 10,00,000 respectively equivalent to Rs. 1597.01 lacs (Previous year Rs. Nil) translated at year-end exchange rate.

c. Letter of credit established but material not received amounting to Rs. 5276.21 lacs (Previous year Rs. 483.54 lacs).

d. Guarantee/Letter of Assurance given to Banks for Bills discounting facilities (Channel Financing) - Rs. 5,000.00 lacs (Previous Year Rs. 5,000.00 lacs) and outstanding amount under this Bills Discounting facility - Rs. 4119.89 lacs (Previous year Rs. 2724.60 lacs)

e. Claims against the Company not acknowledged as debts - Rs. 72.91 lacs (Previous year - Rs. 47.13 lacs)

f. Disputed Demand of Statutory Dues in Appeal Rs. 881.31 lacs (Previous year Rs. 3271.60 lacs). Out of it Rs. NIL (Previous Year Rs. 2670.52 lacs) has been stayed for recovery by the relevant Authorities.

g. Amounts covered by Show cause notices received from Excise Authorities Rs. 8783.20 lacs (Previous Year Rs. 5842.62 lacs).

h. Amounts covered by Departmental appeals against orders in favour of the Company Rs. 11.06 lacs (Previous Year Rs. Nil).

i. Estimated liability of "Entry Tax" under "Himachal Pradesh Tax on Entry of Goods into Local Area Act, 2010" - Rs. Nil (Previous Year Rs. 88.83 lacs) (stayed by High Court of Himachal Pradesh)

j. Guarantee given to Banks in respect of loans to its wholly owned subsidiary US Dollar 10,000,000 (Previous Year US Dollar 10,000,000) and Singapore Dollar 14,00,000 (Previous Year Singapore Dollar 14,00,000) equivalent to Rs. 6040 lacs (Previous Year Rs. 5654.81 lacs), translated at year-end exchange rate.

k. In respect of capital goods imported at the concessional rate of duty under the Export Promotion Capital Goods Scheme, the Company has an export obligation of approximately Rs. 13985.32 lacs (previous year Rs. 18834.94 lacs), which is required to be met at different dates, before 10.04.2019 (previous year 30.12.2018). In the event of non-fulfillment of the export obligation, the Company will be liable to pay customs duties of approximately Rs. 1748.17 lacs (Previous Year Rs. 2354.37 lacs) together with interest, as applicable.

3. Balances under Trade receivables, Trade Payables, Loans and Advances payable or receivable are subject to confirmation to be received from some of the parties.

4. Segment Reporting (Under Accounting Standard AS - 17 issued by ICAI)

Segment information has been prepared in conformity with the accounting policies adopted for preparing and presenting the financial statements of the Company. As part of Secondary reporting, revenues are attributed to geographical areas based on the location of the customers. The following table present the revenue, profit, assets and liabilities information relating to the business/geographical segment for the year ended 31st March, 2013.

5. RELATED PARTY DISCLOSURES AS PER ACCOUNTING STANDARD AS - 18

5.1 List of related parties where control exists and related parties with whom transactions have taken place and relationships: a) Wholly owned Subsidiary Companies

i) Greenlam Asia Pacific Pte. Ltd.

ii) Greenlam America, Inc.

iii) Greenlam Europe (UK) Ltd.

b F''aities where control exists

i) Himalaya Granites Ltd.

ii) Prime Holdings Pvt Ltd.

iii) S.M.Management Pvt Ltd.

iv) Prime Properties Pvt Ltd.

v) Trade Combines

S''Koy Management Personnel

i) Mr. Shiv Prakash Mittal, Executive Chairman

ii) Mr. Rajesh Mittal, Managing Director

iii) Mr. Saurabh Mittal, Jt. Managing Director & CEO

iv) Mr. Shobhan Mittal, Executive Director

d) Relative of Directors:

i) Ms. Parul Mittal

ii) Ms. Chitwan Mittal

5.2 Investments by the loanee in the shares of the parent Company and its subsidiary companies, when the Company has made a loan or advance in the nature of loan Rs. NIL (Previous Year Rs. NIL)

Notes :

1. Related Party Relationship is as identified by the Company and relied upon by the Auditors.

2. Figures for the previous year have been given in brackets.

6. INFORMATION REGARDING MICRO, SMALL AND MEDIUM ENTERPRISES

As at 31st March, 2013, no supplier has intimated the Company about its status as Micro or Small enterprises or its registration with the appropriate authority under Micro, Small and Medium Enterprises Act, 2006. So, no disclosure is made. The Company has compiled this information based on the current information in its possession.

7. ACCOUNTS OF SUBSIDIARY COMPANIES

The accounts of the subsidiary companies are not attached herewith as the Board of Directors of the Company resolved to avail the general exemption granted by the Ministry of Corporate Affairs, Government of India vide its Circular no.2 / 2011 dated 8th February, 2011.


Mar 31, 2012

1.1 Disclosure as per SEBI guidelines

On 24.03.2011, the Company allotted 20,39,694 equity shares of Rs. 5 each at a premium of Rs. 137 per equity share on account of conversion of 20,39,694 detachable warrants issued and allotted on 16th October, 2009 pursuant to the Letter of Offer dated 14th September, 2009 and received Rs. 2924.64 lacs (including Rs. 28.27 lacs brought in by promoters/promoter group as advised by stock exchanges under instruction from SEBI) from the said conversion of detachable warrants. The said proceeds have been fully utilised towards the following purposes.

2.1 Term Loan from Landesbank Baden-Wurttenberg is secured by first priority security charge on Main Press Line of MDF plant.

2.2 All other Term Loans are secured by first mortgage and charge on the immovable and movable properties of the company other than immovable properties at Tizit, Nagaland and Main Press line of MDF plant, ranking on pari passu basis, save and except current assets, both present and future and second charge over the current assets.

2.3 Deferred payment liabilities are in respect of finance of vehicles and are secured by hypothecation of the respective vehicles.

3.1 Company's Tizit (Nagaland) unit is entitled to exemption equivalent to the excise duty payable on value addition carried out by the unit. The Central Excise Duty debited to Profit and Loss Account is net of refund received Rs. 489.74 lacs (Previous year Rs. 407.98 lacs).

3.2 Company's both the units at Rudrapur (Uttarakhand) and its unit at Nalagarh (Himachal Pradesh) are exempt from levy of Central Excise Duty.

3.3 Central Excise Duty includes Rs. 117.74 lacs (Previous year Rs. 45.78 lacs) paid on account of differential excise duty for earlier years.

4.1 Disclosures Regarding Employee Benefits

Defined Contribution Plan: Employee benefits in the form of Provident Fund and ESIC are considered as defined contribution plan and the contributions to Employees' Provident Fund Organisation established under The Employees' Provident Fund and Miscellaneous Provisions Act, 1952 and Employees' State Insurance Act, 1948, respectively, are charged to the Statement of Profit and Loss of the year when the contributions to the respective funds are due.

Defined Benefit Plan: Retirement benefits in the form of Gratuity are considered as defined benefit obligations and are provided for on the basis of third party actuarial valuation, using the projected unit credit method, as at the date of the Balance Sheet. As the Company has not funded its liability, it has nothing to disclose regarding plan assets and its reconciliation. Defined Benefit Obligation at the year end amounted to Rs. 791.80 lacs (previous year Rs. 619.64 lacs).

5. CONTINGENT LIABILITIES AND COMMITMENTS

5.1. Capital Commitments

Estimated amount of contracts remaining to be executed on capital account and not provided for (Net of advances) Rs. 463.45 lacs (Previous year Rs. 890.58 lacs).

5.2. Contingent Liabilities

a. Counter-Guarantees given to banks for bank guarantees' established Rs. 420.13 lacs (Previous yearRs. 191.01 lacs).

b. Letter of credit established but material not received amounting to Rs. 483.54 lacs (Previous yearRs. 1644.60 lacs).

c. Guarantee/Letter of Assurance given to Banks for Bills discounting facilities (Channel Financing) - Rs. 5,000.00 lacs (Previous Year Rs. 6,000.00 lacs) and outstanding amount under this Bills Discounting facility - Rs. 2724.60 lacs (Previous year Rs. 1606.57 lacs)

d. Claims against the Company not acknowledged as debts -Rs. 47.63 lacs (Previous year -Rs. 46.13 lacs)

e. Disputed Demand of Statutory Dues in Appeal Rs. 3271.60 lacs (Previous yearRs. 3215.88 lacs). Out of itRs. 2670.52 lacs (Previous Year Rs. 2670.52 lacs) has been stayed for recovery by the relevant Authorities.

f. Amounts covered by Show cause notices received from Excise Authorities Rs. 5842.62 lacs (Previous YearRs. 2779.97 lacs).

g. Estimated liability of "Entry Tax" under "Himachal Pradesh Tax on Entry of Goods into Local Area Act, 2010 - Rs. 88.83 lacs (Previous Year Rs. 26.22 lacs) (stayed by High Court of Himachal Pradesh)

h. Guarantee given to Banks in respect of loans to its wholly owned subsidiary US Dollar 10,000,000 (Previous Year US Dollar 10,000,000) and Singapore Dollar 14,00,000 (Previous Year Singapore Dollar 14,00,000) equivalent to Rs. 5654.81 lacs (Previous Year Rs. 4952.62 lacs), translated at year-end exchange rate.

i. In respect of capital goods imported at the concessional rate of duty under the Export Promotion Capital Goods Scheme, the Company has an export obligation of approximatelyRs. 18834.94 lacs (previous yearRs. 21241.90 lacs), which is required to be met at different dates, before 30.12.2018 (previous year 28.03.2019). In the event of non- fulfillment of the export obligation, the Company will be liable to pay customs duties of approximately Rs. 2354.37 lacs (Previous Year Rs. 2655.24 lacs) together with interest, as applicable.

6. CHANGE IN ACCOUNTING POLICY

The Company has exercised the option available to it under Rule 46A of the Companies (Accounting Standards) (Second Amendment) Rules, 2011 in respect of accounting for fluctuations in foreign exchange relating to "Long Term Foreign Currency Monetary Items". Accordingly, it has adjusted a sum ofRs. 872.16 lacs to the cost of its fixed assets on account ' of such difference arising during the year and has provided for the depreciation thereon over the balance useful life of the respective assets. Consequently, the charge to the Statement of Profit and Loss is lower to that extent. The figures for earlier year have not been re-stated pursuant to such change in accounting treatment and so the same are not comparable to that extent.

7. Balances under Trade receivables, Trade Payables, Loans and Advances payable or receivable are subject to confirmation to be received from some of the parties.

8. NEGATIVE NET WORTH OF A SUBSIDIARY :

The company has invested Rs. 740.23 lacs (Previous Year Rs. 740.23 lacs) as equity contribution in Greenlam America Inc., a wholly owned subsidiary. In addition, trade receivables from it amounted to Rs. 1444.09 lacs (Previous Year Rs. 1256.15 lacs) as on 31st March, 2012. The net worth of the subsidiary is negative as on 31st March, 2012 as the accumulated losses of the Company atRs. 1100.47 lacs (Previous YearRs. 1198.30 lacs) have exceeded the paid up share capital of the said subsidiary company by Rs. 360.24 lacs (Previous Year Rs. 458.07 lacs). On consideration of the long term business outlook and future growth plans of the said subsidiary, the Management is of the opinion that losses are temporary in nature and going concern nature of the business is not adversely affected. In view of the above, no diminution in the value of investment is required and the trade receivables are fully recoverable.

9. SEGMENT REPORTING (UNDER ACCOUNTING STANDARD AS - 17 ISSUED BY ICAI)

Segment information has been prepared in conformity with the accounting policies adopted for preparing and presenting the financial statements of the Company. As part of Secondary reporting, revenues are attributed to geographical areas based on the location of the customers. The following table present the revenue, profit, assets and liabilities information relating to the business / geographical segment for the year ended 31st March, 2012.

10. RELATED PARTY DISCLOSURES AS PER ACCOUNTING STANDARD AS - 18

33.1 List of related parties where control exists and related parties with whom transactions have taken place and relationships:

a) Wholly owned Subsidiary Companies

i) Greenlam Asia Pacific Pte. Ltd. ii) Greenlam America, Inc.

b) Parties where control exists

i) Himalaya Granites Ltd.

ii) Prime Holdings Pvt Ltd.

iii) S.M.Management Pvt Ltd.

iv) Greenply Leasing & Finance Ltd.

v) Prime Properties Pvt Ltd.

vi) Vanashree Properties Pvt Ltd.

vii)Trade Combines

c) Key Management Personnel

i) Mr. Shiv Prakash Mittal, Executive Chairman ii) Mr. Rajesh Mittal, Managing Director iii) Mr. Saurabh Mittal, Jt. Managing Director & CEO iv) Mr. Shobhan Mittal, Executive Director

d) Relative of Directors:

Ms. Parul Mittal

10.2. Investments by the loanee in the shares of the parent Company and its subsidiary companies, when the Company has made a loan or advance in the nature of loan Rs. NIL (Previous Year Rs. NIL)

Notes :

1. Related Party Relationship is as identified by the Company and relied upon by the Auditors.

2. Figures for the previous year have been given in brackets.

11. INFORMATION REGARDING MICRO, SMALL AND MEDIUM ENTERPRISES

As at 31st March, 2012, no supplier has intimated the Company about its status as Micro or Small enterprises or its registration with the appropriate authority under Micro, Small and Medium Enterprises Act, 2006. So, no disclosure is made. The Company has compiled this information based on the current information in its possession.

12. ACCOUNTS OF SUBSIDIARY COMPANIES

The accounts of the subsidiary companies are not attached herewith as the Board of Directors of the Company resolved to avail the general exemption granted by the Ministry of Corporate Affairs, Government of India vide its Circular no.2/ 2011 dated 8th February, 2011.


Mar 31, 2011

1.01 Capital Commitments:

Estimated amount of contracts remaining to be executed on capital account and not provided for (Net of advances) Rs.890.48 lacs (Previous year Rs.2758.02 lacs).

2.02 Contingent Liabilities:

2.02.01 Counter-Guarantees given to banks for bank guarantees' established Rs.191.01 lacs (Previous yearRs. 186.65 lacs).

2.02.02 Letter of credit established but material not received amounting to Rs.1644.60 lacs (Previous year Rs.1762.90 lacs).

2.02.03 Guarantee/Letter of Assurance given to Banks for Bills discounting facilities (Channel Financing) - Rs.6,000.00 lacs (Previous Year Rs.6,000.00 lacs) and outstanding amount under this Bills Discounting facility -Rs.1606.57 lacs (Previous year Rs.957.81 lacs)

2.02.04 Claims against the Company not acknowledged as debts -Rs.46.13 lacs (Previous year -Rs.27.46 lacs)

2.02.05 Disputed Demand of Statutory Dues in Appeal Rs.3215.88 lacs (Previous year Rs.3508.26 lacs).

2.02.06 Amounts covered by Show cause notices received from Excise Authorities Rs.2779.97 lacs (Previous Year Rs.NIL).

2.02.07 Estimated liability of "Entry Tax" under "Himachal Pradesh Tax on Entry of Goods into Local Area (Amendment) Ordinance, 2011- Rs.26.22 lacs (Previous Year Rs.NIL) (stayed by High Court of Himachal Pradesh)

2.02.08 Guarantee given to Banks in respect of loans to its wholly owned subsidiary US Dollar 10,000,000 (Previous Year US Dollar 10,000,000) and Singapore Dollar 14,00,000 (Previous Year NIL) equivalent to Rs.4952.62 lacs (Previous Year Rs.4507.00 lacs), translated at year-end exchange rate.

2.02.09 In respect of capital goods imported at the concessional rate of duty under the Export Promotion Capital Goods Scheme, the Company has an export obligation of approximately Rs.21241.90 lacs (previous year Rs.23201 lacs), which is required to be met at different dates, before 28.03.2019. In the event of non- fulfillment of the export obligation, the Company will be liable to pay customs duties of approximately Rs.2655.24 lacs (Previous YearRs.2900 lacs) together with interest, as applicable. Further, export obligations under Advance Authorisation Scheme / DFIA Scheme on duty free imports of raw materials remain outstanding to the extent of Rs.NIL (Previous Year Rs.671.30 lacs).

2.03 Revalued Assets:

Some of fixed assets of Plywood Division were revalued on 31st March, 1994 and the resultant increase in book value was Rs.293.52 lacs. Depreciation for the year includes Rs.3.23 lacs (Previous year Rs.5.11 lacs) pertaining to revalued amount.

2.04 Export Incentives:

As per past practice, Export Incentives credited to Profit and Loss Account includes estimated duty saving of Rs.662.57 lacs (Previous year Rs.121.32 lacs) on the basis of rates of duty in force as at the end of the accounting period under Advance Authorisation Scheme for import of Raw Materials for value of USD 1,02,33,043 (Previous year USD 29,60,446.18) without payment of customs duty and also unutilised entitlements of Rs.572.91 lacs (previous year Rs.692.05 lacs) under DFIA scheme for import of raw materials for value of USD 1,24,80,931 (Previous year USD 1,56,80,528) and unutilised entitlements of Rs.51.57 lacs (Previous year Rs.20.56 lacs) under Duty Entitlement Pass Book Scheme. The generally accepted accounting practice is to account for this duty saving when its realisation is reasonably certain. This benefit is dependent upon actual imports within the stipulated time and on the rates of duty in force when the licenses are so actually utilised. By crediting this hypothetical and uncertain income of Rs.1287.05 lacs (previous year Rs.833.93 lacs) to the profit & loss account, the profit for the year and current assets have been overstated to that extent.

2.05 Valuation of Investments, Etc.:

The Company has invested Rs.740.23 lacs as equity contribution in Greenlam America Inc., a wholly owned subsidiary. In addition, trade receivables from it amounted to Rs.1256.15 lacs as on 31st March, 2011. The net worth of the subsidiary is negative as on 31st March, 2011 as the accumulated losses of the Company at Rs.1198.30 lacs have exceeded the paid up share capital of the said subsidiary company by Rs.458.07 lacs.

On consideration of the long term business outlook and future growth plans of the said subsidiary, the Management is of the opinion that losses are temporary in nature and going concern nature of the business is not adversely affected. In view of the above, no diminution in the value of investment is required and the trade receivables are fully recoverable.

2.06 Exemptions From Central Excise Duty:

2.06.01 Company's Tizit (Nagaland) unit is entitled to exemption equivalent to the excise duty payable on value addition carried out by the unit. The Central Excise Duty debited to Profit and Loss Account is net of refund received Rs.407.98 lacs (Previous year Rs.266.75 lacs).

2.06.02 Company's both the units at Rudrapur (Uttarakhand) and its unit at Nalagarh (Himachal Pradesh) are exempt from levy of Central Excise Duty.

2.07 Information Regarding Micro, Small and Medium Enterprises:

As at 31st March, 2011, no supplier has intimated the Company about its status as Micro or Small enterprises or its registration with the appropriate authority under Micro, Small and Medium Enterprises Act, 2006. So, no disclosure is made. The Company has compiled this information based on the current information in its possession.

2.08 Disclosures Regarding Employee Benefits:

2.08.01 Defined Contribution Plan: Employee benefits in the form of Provident Fund and ESIC are considered as defined contribution plan and the contributions to Employees' Provident Fund Organisation established under The Employees' Provident Fund and Miscellaneous Provisions Act 1952 and Employees' State Insurance Act, 1948, respectively, are charged to the Profit and Loss Account of the year when the contributions to the respective funds are due.

2.08.02 Defined Benefit Plan: Retirement benefits in the form of Gratuity are considered as defined benefit obligations and are provided for on the basis of third party actuarial valuation, using the projected unit credit method, as at the date of the Balance Sheet. As the Company has not funded its liability, it has nothing to disclose regarding plan assets and its reconciliation. Defined Benefit Obligation at the year end amounted to Rs.619.64 lacs (previous yearRs.496.87 lacs).

2.08.03 Actuarial assumptions:

Mortality Table (LIC) LIC 1994-1996

Discount Rate (per annum) 8

Expected rate of return on plan assets (per annum)

Rate of escalation in salary (per annum) 5

2.08.04 The estimates of rate of escalation in salary considered in actuarial valuation, take into account inflation, seniority, promotion and other relevant factors including supply and demand in the employment market.

2.08.05 The above information is certified by the actuary.

2.08.06 Para 132 of Accounting Standard 15 (revised 2005) does not require any specific disclosures except where expense resulting from compensated absence is of such size, nature or incidence that its disclosure is relevant under Accounting Standard 5 or Accounting Standard 18. In the opinion of the management the expense resulting from compensated absence is not significant and hence no disclosures are prepared under various paragraphs of AS 15 (revised 2005).

2.10 Accounts of Subsidiary Companies:

The accounts of the subsidiary companies are not attached herewith as the Board of Directors of the Company resolved to avail the general exemption granted by the Ministry of Corporate Affairs, Government of India vide its Circular no.2/2011 dated 8th February, 2011.

2.11 Manufactured goods consumed for own use is accounted for at selling price.

2.12 Inventories are taken, valued and certified by the management.

2.13 Balances under Sundry Debtors, Sundry Creditors, Loans and Advances payable or receivable are subject to confirmation to be received from some of the parties.

The above does not includes:

a) Sitting fee of Rs.3.15 lacs (Previous year Rs.4.00 lacs) paid to non-executive Directors.

b) Commission on net profits of T20.00 lacs (Previous year 710.00 lacs) paid to non-executive Directors.

c) Provision for gratuity of whole time directors 71.56 lacs (Previous year 72.20 lacs) on actuarial basis.

2.16 Borrowing costs capitalised during the period TNIL. (Previous year 7553.82 lacs).

2.17 Raw Materials Consumed includes cost of raw materials sold 71165.93 lacs (Previous year 7937.40 lacs).

2.18 Central Excise Duty includes 745.78 lacs (Previous year 730.34 lacs) paid on account of differential excise duty for earlier years.

2.19 The figures of the previous year have been re-grouped and re-arranged wherever necessary.


Mar 31, 2010

1.01 Capital Commitments:

Estimated amount of contracts remaining to be executed on capital account and not provided for (Net of advances) Rs. 2758.02 lacs (Previous year Rs.15946.80 lacs).

1.02 Contingent Liabilities:

1.02.01 Counter-Guarantees given to banks for bank guarantees established Rs.186.65 lacs (Previous year Rs.195.26 lacs).

1.02.02 Letter of credit established but material not received amounting to Rs. 1762.90 lacs (Previous year Rs. 1019.32 lacs).

1.02.03 Guarantee/Letter of Assurance given to Banks for Bills discounting facilities (Channel Financing) - Rs.6,000.00 lacs (Previous Year Rs. Nil) and outstanding amount under this Bills Discounting facility - Rs. 957.81 lacs (Previous year Rs. Nil)

1.02.04 Claims against the Company not acknowledged as debts - Rs. 27.46 lacs (Previous year - Rs. 27.46 lacs)

1.02.05 Disputed Demand of Statutory Dues in Appeal Rs.3508.26 lacs (Previous year Rs.3938.72 lacs).

1.02.06 Guarantee given to a Bank in respect of loans to its wholly owned subsidiary US Dollar 10,000,000 (Previous Year Singapore Dollar 66,00,000) equivalent to Rs. 4507.00 lacs, translated at year-end exchange rate (Previous Year Rs 2197.80 lacs).

1.02.07 In respect of capital goods imported at the concessional rate of duty under the Export Promotion Capital Goods Scheme, the company has an export obligation of approximately Rs.23201 lacs (previous year nil), which is required to be met at different dates, before 23.03.2018. In the event of non-fulfillment of the export obligation, the company will be liable to pay customs duties of approximately Rs.2900 lacs together with interest, as applicable. Further, export obligations under Advance Authorisation Scheme / DFIA Scheme on duty free imports of raw materials remain outstanding to the extent of Rs.671.30 lacs.

2.01 Revalued Assets:

Some of fixed assets of Plywood Division were revalued on 31st March, 1994 and the resultant increase in book value was Rs.293.52 lacs. Depreciation for the year includes Rs.5.11 lacs (Previous year Rs.5.11 lacs) pertaining to revalued amount.

2.02 Export Incentives:

As per past practice, Export Incentives credited to Profit and Loss Account includes estimated duty saving of Rs.121.32 lacs (Previous year Rs.55.57 lacs) on the basis of rates of duty in force as at the end of the accounting period under Advance Authorisation Scheme for import of Raw Materials for value of USD 29,60,446.18 (Previous year USD 10,81,381) without payment of customs duty and also unutilised entitlements of Rs 692.05 lacs under DFIA scheme (previous year Rs 400.61 lacs) for import of raw materials for value of USD 1,56,80,528 (Previous year USD 77,95,178) and unutilised entitlements of Rs 20.56 lacs (Previous year Rs. 3.88 lacs) under Duty Entitlement Pass Book Scheme. The generally accepted accounting practice is to account for this duty saving when its realisation is reasonably certain. This benefit is dependent upon actual imports within the stipulated time and on the rates of duty in force when the licenses are so actually utilised. By crediting this hypothetical and uncertain income of Rs 833.93 lacs (previous year Rs.460.06 lacs) to the profit & loss account, the profit for the year and current assets have been overstated to that extent.

2.03 Exemptions From Central Excise Duty:

2.03.01 Company’s Tizit (Nagaland) unit is entitled to exemption equivalent to the excise duty payable on value addition carried out by the unit. The Central Excise Duty debited to Profit and Loss Account is net of refund received Rs.266.75 lacs (Previous year Rs.254.38 lacs).

2.03.02 Company’s both the units at Rudrapur (Uttarakhand) and its unit at Nalagarh (Himachal Pradesh) are exempt from levy of Central Excise Duty.

2.04 Information Regarding Micro, Small and Medium Enterprises:

As at 31st March, 2010, no supplier has intimated the Company about its status as Micro or Small enterprises or its registration with the appropriate authority under Micro, Small and Medium Enterprises Act, 2006. So, no disclosure is made. The Company has compiled this information based on the current information in its possession.

2.05 Disclosures Regarding Employee Benefits:

2.05.01 Defined Contribution Plan: Employee benefits in the form of Provident Fund and ESIC are considered as defined contribution plan and the contributions to Employees’ Provident Fund Organisation established under The Employees Provident Fund and Miscellaneous Provisions Act 1952 and Employees’ State Insurance Act, 1948, respectively, are charged to the Profit and Loss Account of the year when the contributions to the respective funds are due.

2.05.02 Defined Benefit Plan: Retirement benefits in the form of Gratuity are considered as defined benefit obligations and are provided for on the basis of third party actuarial valuation, using the projected unit credit method, as at the date of the Balance Sheet. As the Company has not funded its liability, it has nothing to disclose regarding plan assets and its reconciliation. Defined Benefit Obligation at the year end amounted to Rs. 496.87 lacs (previous year Rs. 363.41 lacs).

2.05.03 Actuarial assumptions:

Mortality Table (LIC) LIC 1994-1996

Discount Rate (per annum) 8

Expected rate of return on plan assets (per annum)

Rate of escalation in salary (per annum) 5

2.05.04 The estimates of rate of escalation in salary considered in actuarial valuation, take into account inflation, seniority, promotion and other relevant factors including supply and demand in the employment market.

2.05.05 The above information is certified by the actuary.

2.05.06 Para 132 of Accounting Standard 15 (revised 2005) does not require any specific disclosures except where expense resulting from compensated absence is of such size, nature or incidence that its disclosure is relevant under Accounting Standard 5 or Accounting Standard 18. In the opinion of the management the expense resulting from compensated absence is not significant and hence no disclosures are prepared under various paragraphs of AS 15 (revised 2005).

2.06 Accounts of Subsidiary Companies:

The accounts of the subsidiary companies are not attached herewith as the Company has obtained exemption from Ministry of Corporate Affairs, Government of India vide order number 47/180/2010-CL-III dated 05.04.2010.

2.07 Manufactured goods consumed for own use is accounted for at selling price.

2.08 Inventories are taken, valued and certified by the management.

2.09 Balances under Sundry Debtors, Sundry Creditors, Loans and Advances payable or receivable are subject to confirmation to be received from some of the parties.

a) Sitting fee of Rs. 4.00 lacs (Previous year Rs. 2.17 lacs) paid to non-executive Directors.

b) Commission on net profits of Rs.10.00 lacs (Previous year Rs.10.00 lacs) paid to non-executive Directors.

c) Provision for gratuity of whole time directors Rs.2.20 lacs (Previous year Rs.1.98 lacs) on actuarial basis.

2.10 Borrowing costs capitalised during the period Rs 553.82 lacs (Previous year Rs.407.47 lacs).

2.11 Raw Materials Consumed includes cost of raw materials sold Rs.937.40 lacs (Previous year Rs.491.86 lacs).

2.12 Central Excise Duty includes Rs 30.34 lacs (Previous year Rs.22.91 lacs) paid on account of differential excise duty for earlier years.

2.13 The figures of the previous year have been re-grouped and re-arranged wherever necessary.

2.14 Segment Reporting (Under Accounting Standard AS - 17 issued by ICAI)

Segment information has been prepared in conformity with the accounting policies adopted for preparing and presenting the financial statements of the Company. As part of Secondary reporting, revenues are attributed to geographical areas based on the location of the customers. The following table present the revenue, profit, assets and liabilities information relating to the business / geographical segment for the year ended 31st March, 2010.

Notes:

a) Segment Assets and Liabilities :

All Segment Assets and liabilities are directly attributable to the segment. Segment assets include all operating assets used by the segment and consist principally of fixed assets, inventories, sundry debtors, advances and operating cash and bank balances. Segment assets and liabilities do not include investments, inter-corporate deposits and advances, share capital, reserves and surplus, borrowings, provision for gratuity, proposed dividend and income tax (both current and deferred).

b) Segment Revenue and Expenses :

Segment revenue and expenses are directly attributable to the segment. It does not include dividend income, profit on sale of investments, interest expense (net), other expenses which cannot be allocated on a reasonable basis and provision for income tax (both current and deferred).

2.15 Related Party Disclosures (Under Accounting Standard AS - 18 issued by ICAI) 2.21.01) List of Related Parties

As per Accounting Standard 18, the disclosures of transactions with the related parties as defined in the Accounting Standard are given below:

a) Wholly owned Subsidiary Companies

i) Greenlam Asia Pacific Pte. Ltd. (Formerly GIL Intercontinental Pte. Ltd.) ii) Greenlam America, Inc.

b) Parties where control exists

i) Himalaya Granites Ltd.

ii) Prime Holdings Pvt Ltd.

iii) S.M.Management Pvt Ltd.

iv) Greenply Leasing & Finance Ltd.

v) Vanashree Properties Pvt Ltd.

vi) Trade Combines

c) Key Management Personnel

i) Mr. Shiv Prakash Mittal, Executive Chairman

ii) Mr. Rajesh Mittal, Managing Director

iii) Mr. Saurabh Mittal, Jt. Managing Director & CEO

iv) Mr. Shobhan Mittal, Executive Director

d) Relative of Directors:

i) Ms. Parul Mittal

Notes :

1. Related Party Relationship is as identified by the Company and relied upon by the Auditors.

2. Figures for the previous year have been given in brackets.

Investments by the loanee in the shares of the parent Company and its subsidiary companies, when the Company has made a loan or advance in the nature of loan Rs. NIL (Previous Year Rs. NIL)

Find IFSC