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Notes to Accounts of Nirvikara Paper Mills Ltd.

Mar 31, 2015


(a). Terms/rights attached to equity shares:

All the Equity Shares have equal rights in respect of distribution of dividends and the repayment of capital Shareholder's holding more than 5% Shares in the Company

2. Contingent Liabilities and commitments

(i) Contingent Liabilities Current Year Previous Year a) Claims against the Company not acknowledge as debts

- Disputed claims for excise, cess, sales tax and service tax 47,112,595 -

- Disputed income tax demands 2,056,130 -

- Others 58,748,723 -

b) Guarantees

- Guarantees given by the Company's bankers on behalf of the Company against the Company's 17,597,656 - Indemnity

(ii) Commitments

Estimated amount of contracts remaining to be executed on capital account and not provided for 20,066,723 -

3. Related Party Disclosures *

(Where transactions have taken place)

a) Key Management Personnel (KMP)

Mr. Anurag P. Poddar- Chairman & Managing Director , Mr. Ankit P. Poddar - Executive Director, Mr. Shrutisheel Jhanwar - Whole-time Director & CFO

b) Other Related Parties -(Enterprises having significant influence) Siyaram Silk Mills Ltd., S. P. Finance & Trading Ltd., Sanchana Trading & Finance Ltd., Balkrishna Industries Ltd.

Disclosure in respect of Material Related Party Transaction during the year :

1 Purchase of Goods/ Materials includes : Siyaram Silk Mills Limited Rs. 8,894 (Previous Year Rs.Nil)

2 Reimbursement of Expenses includes: Balkrishna Industries Ltd. Rs. 90,643 (Previous Year Rs. Nil)

3 Rent Paid Includes : Siyaram Silk Mills Ltd. Rs. 3,67,501 (Previous Year Rs. Nil), Balkrishna Industries Ltd Rs. 11,582 (Previous Year Rs. Nil)

4 Remuneration to Key Management Personnel includes : Mr. Anurag P Poddar Rs. 5,86,612 (Previous Year Rs.Nil), Mr. Ankit P Poddar Rs.5,95,366 (Previous Year Rs. Nil), Mr. Shrutisheel Jhanwar Rs. 6,07,060 (Previous Year Rs.Nil)

5 Inter Corporate Loan Received includes : S. P. Finance & Trading Ltd. Rs.10,00,000 (Previous Year Rs. Nil)

6 Inter Corporate Loan Repayment includes :Sanchana Trading & Finance Limited Rs.10,00,000 (Previous Year Rs.Nil)

7 Interest Paid on Loan Received includes : S. P. Finance & Trading Ltd. Rs.17,71,918 (Previous Year Rs. Nil), Sanchana Trading & Finance Limited Rs. 5,699 (Previous Year Rs. Nil)

8 Payables to Other Related Parties includes : S. P. Finance & Trading Ltd. Rs.99,800,000 (Previous Year Rs.Nil)

9 Interest accrued but not due on borrowings includes: S. P. Finance & Trading Ltd. Rs.19,07,966 (Previous Year Rs. Nil), Sanchana Trading & Finance Limited Rs. 8,013 (Previous Year Rs. Nil)

10 Personal Guarantee against Working Capital Term loan given by KMP: Mr Anurag P. Poddar and Mr Ankit P. Poddar for Rs. 25,00,00,000

*Parties identified by the Management and relied upon by the auditors.

No amount in respect of related parties have been written off/back or are provided for during the year.

3. a) As at 31st March,2015, there are no Micro, Small and Medium Enterprises, as defined in the Micro, Small, Medium Enterprises Development Act, 2006, to whom the Company owes dues on account of principal amount together with interest and accordingly no additional disclosures have been made.

b) The above information regarding Micro, Small and Medium Enterprises has been determined to the extent such parties have been identified on the basis of information available with the Company. This has been relied upon by the auditors.

4. a) Defined Contribution Plans

The Company's contribution to defined contribution plans aggregating to Rs. 7,15,555 (Previous Year Rs.Nil) has been recognised in the statement of Profit and Loss under the heading 'Contribution to Provident and Other Funds' (Note No.25)

b) The assumption of future salary increase, considered in actuarial valuation, takes into account of inflation and other relevant factors.

5. As the Company's business activity falls within a single segment viz 'Paper and Paper Boards' and sales being mainly in the domestic market, the disclosure requirements of Accounting Standard -17 "Segment Reporting" are not applicable.

6. a) A scheme of arrangement("Scheme")under section 391 to 394 of the Company's Act 1956 between Balkrishna Industries Limited (BIL), Balkrishna Paper Mills Limited (BPML), Nirvikara Paper Mills Limited (Company), their respective shareholders and creditors was approved by Hon'ble High Court of Judicature at Bombay vide Order dated 19th December 2014

b) BPML, which was engaged in the business of manufacturing of paper board, has been amalgamated with BIL with effect from the Appointed Date, i.e., 1st April 2013 whereby, the assets, liabilities and reserves of BPML has been vested with BIL and have been recorded at their respective book value, under the pooling of interest method of accounting for amalgamation.

c) The Paper Division Undertaking of the Company have been demerged to the Company with effect from the Effective Date, i.e., 10th February 2015, whereby the Company's Share Capital of Rs. 5 lacs stands cancelled and an aggregate of 1,07,39,844 equity shares of Rs. 10 each of the Company were issued to the equity shareholders of BIL in the ratio of 1 equity share of the Company for every 9 equity shares held in BIL.

d) The effect of the Scheme has been considered in these financial statements for the year ended 31st March, 2015 and therefore to that extent, the figures of the current year are not comparable with those of the previous year.

e) The authorised share capital of the Company has been increased to Rs. 11,00,00,000 consisting of 1,10,00,000 Equity Shares of Rs. 10 each.

7. Previous year's figures have been regrouped/reclassified wherever necessary to correspond with the current year's classification/disclosure.

Oct 26, 4:01 pm
Oct 26, 4:14 pm
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