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Notes to Accounts of Pudumjee Pulp & Paper Mills Ltd.

Mar 31, 2015

NOTE '1A' - DISCONTINUING OPERATIONS

The Company has undertaken restructuring initiative for demerger of the Paper Manufacturing Business of the Company. The Board of Directors of the Company at its Meeting held on 17th January, 2015 has considered and approved a Scheme of Arrangement( Demerger) between the company, Pudumjee Industries Ltd., Pudumjee Hygiene Products Ltd. and Pudumjee Paper Products Ltd. As per the Scheme the Paper Manufacturing Business of the Company would be demerged and transferred to Pudumjee Paper Products Limited.

The Paper Manufacturing is the main business segment of the company. The Scheme is subject to requisite approvals, including sanction of the Hon'ble High Court at Mumbai which is pending. Accordingly aforesaid Paper business has been considered as discontinuing operations.

1.01 Sale of wind power & expenditure of Fuel power & water include Rs.79.68 lacs (last year Rs. 522.03 lacs) captively consumed for manufacturing operations to make the presentation under Accounting Standard 24 Discontinuing Operations meaningful.

1.02 Salary, Wages, gratuity and bonus (Note '22') does not include a sum of Rs. 109.15 lacs (Last year Rs. 83.99 lacs) transferred to other accounts.

1.03 a) The company has acquired leasehold land,building and board manufacturing machine at Mahad Dist. Raigad in the earlier years, where a paper machine was being installed under an expansion programme. The leasehold land,colony and buildings are shown under Tangible Fixed Assets Schedule (Note No.10) and is appropriately amortized and depreciated for the year and Factory Building, Machinery and all other assets together with related expenditure have been shown under Capital work-in-progress.

b) In view of the aforesaid expansion project having been temporarily deferred, the borrowing and other recurring costs (net) incurred for the year aggregating to Rs. 259.43 lacs (Last year Rs.310.79 lacs)have been treated as revenue expenditure and charged to the Profit & Loss account for the year ended 31-03-2015 under the respective heads.

1.04 a) Land admeasuring 96111.84 sqft at Thergaon, Pune costing Rs. 0.14 lac, used in relation to operation of factory, is revalued and converted in to stock in trade on 23.10.2013 at an amount of Rs. 1441.67 lacs being the Fair Market Value of the land, ascertained by the Government approved valuers and the resulting difference of Rs. 1441.53 lacs is credited to Capital Reserve appearing under Reserves and Surplus. The Company is developing this land for constructing residential /commercial complex and expenditure of Rs. 106.29 lacs during the year and Rs. 164.63 lacs in the earlier year incurred in this regard is carried forward as a part of stock in trade.

b) Land admeasuring about 3000 Sq. Meters has been acquired by Municipal Corporation for road widening purpose in the earlier years.The Company is entitled to TDR with an out side chance of cash compensation, which is yet to be determined and as such this will be included when finally decided since the relevant documentation is yet to be finalised and executed.

c) Interest amounting to Rs. 10.71 lacs (previous year Nil) has been capatilised during the year to Machinery under installation.

1.05 Corporate Social Responsibility expenses debited to the Profit & Loss account Rs. 10.20 lacs (Last year Nil) represents amount actually spent during the year on purpose other than construction / acquisition of Assets. The unspent amount is provided by debit to Surplus account in Profit & Loss account under Reserves & Surplus - Rs. 29.80 lacs.

1.06 To the best of knowledge of the company, none of the creditors are 'Small enterprise' within its meaning under clause (m) of section 2 of the Micro,Small and Medium Enterprises Development Act, 2006 & therefore principal amount,interest paid/payable or accrued is NIL.

AS AT AS AT 31.03.2015 31.03.2014 Rs.in Lacs Rs. in Lacs

1.07 a) Contingent Liabilities not provided for in respect of :

i) Bank Guarantees and Letters of Credit in favour of suppliers of raw materials, spares etc.* 2,104.77 3,012.52

ii) Guarantee for other Companies* 1,297.68 2,488.36

iii) Claims against the Company not acknowledged as debts for excise duty, property tax and commercial claims etc. ** 586.99 586.61

iv) Penalty under Income Tax Act no longer payable in view of appellate order in company's favour * - 351.91

* Will not affect the future Profitability.

** May affect the future profitability to the extent indicated, if such liabilities crystallise.

b) Commitments not provided for in respect of : i) Estimate of contracts remaining to be executed on capital account 207.57 46.33

1.08 Following significant accounting policies have been adopted in preparation and presentation of the financial statements :

1.09 Depreciation

(a) The Company has adopted the estimates of the useful lives of the Fixed Assets wef. 1st April, 2014 as prescribed under schedule II of the companies Act. 2013, as a result the charge of Depreciation for the year is lower by Rs. 304.55 lacs.

(b) Further an amount of Rs. 29.05 lacs has been added to the depreciation for the year inrespect of the residual value of assets,whose remaining useful lives has become Nil.

(c) The Company has now adopted straight line method for all the assets instead of written down value method for certain assets. consequently an amount of Rs. 50.65 Lacs has been deducted from depreciation for the year.

(d) Consequent to these changes the depreciation for the year ended 31st March 2015 is lower by Rs. 326.15 Lacs and profit before and after tax is correspondingly higher by the same amount.

(b) The Deferred Tax Asset in respect of carry forward of losses and tax credit has been worked out on the basis of assessment orders,returns of income filed for subsequent assessment years and estimate of the taxable income for the year ending 31st March, 2015.

1.10 A Dividend of Rs. 0.30 (Last year Rs. 0.30) per equity share of Rs. 2/- each has been proposed for the current year amounting to Rs. 123 lacs (Last year Rs.123 lacs ) excluding Rs. 25.04 lacs (Last year Rs.20.90 lacs) of dividend Distribution tax.

2.1 Related party disclosures (Accounting Standard 18) :

A) Subsidiary Company

a) Pudumjee Investment & Finance Co.Ltd.

B) Associate Firms / Companies

a) M/s. Pudumjee-G : Corp Developers

b) Pudumjee Industries Limited.

c) Pudumjee Plant Laboratories Limited.

d) Pudumjee Hygiene Products Limited.

e) Pudumjee Holdings Limited.

f) Pudumjee Paper Products Limited.

C) Key Management Personnel Shri. Arunkumar M. Jatia

Executive Chairman Shri. V.P. Leekha Managing Director Shri. S.K. Bansal Wholetime Director & C.F.O.

Dr. Ashok Kumar

Executive Director

Shri R.M. Kulkarni

Company Secretary

2.2 SEGMENT REPORTING (Accounting standard 17)

i) The Discontinuing Segment relates to paper manufacturing business

ii) The Continuing Segment Relates to -

a) Construction Activity Development of land for residential / commercial building carried directly or through firm

b) Power Segment relates to Power Generation Activity Wind Power Turbines.

c) Investment / Other segment relates to activities not covered by aforesaid segments.

iii) The figures in brackets relates to earlier year.

2.3 The details of the Joint Venture firm 'Pudumjee-G : Corp Developers' in which the company is partner are as under:

(b) The Firm is engaged in construction and sale of residential flats. It follows completed construction method for the accounting purpose and in view of its fifth building comprising of 94 flats having been completed during this financial year,the Profit & Loss Account of the Company includes its share of profit from the firm as Rs. 1353.21 lacs (Last year Rs. 1142.80 lacs)

2.4 The following are the disclosures required under revised Accounting Standards (AS) 15 in respect of Employee Benefits :

a) An amount of Rs.166.53 lacs (Last year Rs.143.91 lacs) has been recognized as an expense for defined contribution plans by way of Company's contribution to Provident Funds & Super annuation Fund.

b) The defined benefits plans comprise of Gratuity Plan and Leave Encashment Plan.The Gratuity Plan is partly funded with Life Insurance Corporation of India under its Cash Accumulation Plan.In addition,during the current year,as per special resoulation passed by shareholders at their meeting held on 13th September, 2014, a pension / Family pension liability on the basis of actuarial valuation has been provided by debit to P& L Account at Rs. 76.65 lacs in respect of one director of the company.The pension payable will crystalise on his leaving service & family pension after his death to his spouse.

The actuary has assumed rate of interest at 8% p.a.in the valuation of pension / family pension liability & the LIC annuitants mortality (96-98) ultimate table.

Expenses aggregating Rs. 212.55 lacs (Last year Rs.128.58 lacs) covered under items (ii),(iii),(iv),(vi) and (x) above have been debited to the Profit & Loss Account under Salary & Wages, Bonus etc.

2.5 The items and figures for the previous year have been recast and regrouped wherever necessary to conform to this year's presentation.


Mar 31, 2014

1.0 a) Contingent Liabilities not provided for in respect of :

AS AT AS AT 31.03.2014 31.03.2013 Rs.in Lacs Rs.in Lacs

i) Bank Guarantees and Letters of Credit in favour of suppliers of raw materials, spares etc.* 3,012.52 2,111.08

ii) Guarantee for other Companies * 2,488.36 1,435.00

iii) Claims against the Company not acknowledged as debts for excise duty, property tax and commercial claims etc. ** 586.61 619.98

iv) Penalty under Income Tax Act no longer payable in view of appellate order in company''s favour * 351.91 -

* Will not affect the future Profitability.

** May affect the future profitability to the extent indicated, if such liabilities crystallise.

1.1 Following significant accounting policies have been adopted in preparation and presentation of the financial statements :

a) Fixed Assets are valued at cost.

b) Borrowing costs comprising interest etc. relating to projects unless deferred, are capitalised up to the date of its completion and other borrowing costs are charged to Profit & Loss Account in the year of their accrual.

c) Depreciation on Machinery & Building has been provided on Straight Line Method and that on the other Assets on Written Down Value method in accordance with Schedule XIV of the Companies Act, 1956 as in force as on the date of Balance Sheet. Lease hold land is depreciated based on period of residual lease.

d) Finished paper stock is valued at lower of cost or market value. Land treated as stock in trade duly revalued at fair market value on the date of treatment,is carried at that value together with actual development expenses incurred thereon. All other inventories are valued at lower of cost on First In First Out Method or realisable value.

e) Investments are classified into current and long term investments. Current investments are stated at lower of cost or fair value. Long term investments are stated at cost, less provision for permanent diminution in value, if any.

f) (i) Contributions to defined contribution schemes, namely, Provident Fund and Supernnuation Fund is made at a pre-determined rates and are charged to the Profit & Loss Account.

(ii) Contributions to the defined benefit scheme, namely, Gratuity Fund & provision for the remaining Gratuity and for Leave encashment are made on the basis of actuarial valuations made in accordance with the revised Accounting Standard (AS) 15 at the end of each Financial Year and are charged to the Profit & Loss Account of the year.

(iii) Actuarial gains & losses are recognized immediately in the Profit & Loss Account.

g) Foreign Exchange Transactions are recorded at the then prevailing rate. Closing balances of Assets & Liabilities relating to foreign currency transactions are converted into rupees at the rates prevailing on the date of the Balance Sheet. The difference for transactions are dealt with in the Profit & Loss Account.

h) Revenue recognition is postponed to a later year only when it is not possible to estimate it with reasonable accuracy.

i) Factors giving rise to any indication of any impairment of the carrying amount of the company''s assets are appraised at each balance sheet date to determine and provide / revert an impairment loss following accounting standard AS 28 for impairment of assets.

1.2 A Dividend of Rs. 0.30 (Last year Rs. 0.30) per equity share of Rs. 2/- each has been proposed for the current year amounting to Rs. 123 lacs (Last year Rs. 123 lacs) excluding Rs. 20.90 lacs (Last year Rs. 20.90 lacs) of dividend Distribution tax.

1.3 Related party disclosures (Accounting Standard 18) :

A) Subsidiary Company

a) Pudumjee Investment & finance co.Ltd.

B) Associate Firms / Companies

a) M/s. Pudumjee-G : Corp Developers

b) Pudumjee Industries Limited.

c) Pudumjee Plant Laboratories Limited.

d) Pudumjee Hygiene Products Limited.

e) Pudumjee Holdings Limited.

C) Key Management Personnel

Shri. Arunkumar M.Jatia Chairman

Shri. V.P.Leekha Managing Director

Shri. S.K.Bansal Wholetime Director

1.4 The details of the Joint Venture firm ''Pudumjee-G : Corp Developers'' in which the company is partner are as under :

(b) The Firm is engaged in construction and sale of residential flats. It follows completed construction methood for the accounting purpose and in view of its fourth building comprising of 94 flats having been completed during this financial year, the Profit & Loss Account of the Company includes its share of profit from the firm as Rs. 1142.80 lacs (Last year Rs. 1660.06 lacs for 2 buildings)

(c) The company''s share of interest in the joint venture Firm:( Rs.. -lacs)

1. 5 The following are the disclosures required under revised Accounting Standards (AS) 15 in respect of Employee Benefits :

a) An amount of Rs. 143.91 lacs (Last year Rs. 139.23 lacs) has been recognized as an expenses for defined contribution plans by way of Company''s contribution to Provident Funds & Super annuation Fund.

b) The defined benefits plans comprise of Gratuity Plan and Leave Encashment Plan.The Gratuity Plan is partly funded with Life Insurance Corporation of India under its Cash Accumulation Plan.

c) Expenses recognized during the year and reconciliation of the Assets & Liabilities recognized in Balance Sheet as at 31.03.2014 :

1.6 The items and figures for the previous year have been recast and regrouped wherever necessary to conform to this year''s presentation.


Mar 31, 2013

1.01 Salary, Wages, gratuity and bonus (Schedule ''K'' ) does not include a sum of Rs.88.62 lacs (Last year Rs.109.14 lacs) transferred to other accounts.

1.02 a) The company has acquired leasehold land,building and board manufacturing machine at Mahad Dist.Raigad last year, where a Paper machine is also being installed. The leasehold land,colony and buildings are shown under Tangible Fixed Assets schedule (Note No.10) and is appropriately amortized and depreciated for the year and Factory Building,Machinery and all other assets together with related expenditure have been shown under Capital work-in-progress.

b) Borrowing cost comprising interest etc. of Rs. 418.40 lacs (Last year Rs. 155.24 Lacs) and the expenses of Rs.14.85 lacs (Last year Rs. 62.73 lacs) relating to the aforesaid projects have been capitalized.

1.03 To the best of knowledge of the company, none of the creditors are ''Small enterprise'' within its meaning under clause (m) of section 2 of the Micro, Small and Medium Enterprises Development Act, 2006 & therefore principal amount, interest paid/payable or accrued is NIL.

1.04 Land admeasuring about 3000 Sq. Meters has been acquired by Municipal Corporation for road widening purpose in the earlier years.The Company is entitled to TDR with an out side chance of cash compensation, which is yet to determined and as such this will be included when finally decided since the relevant docu- mentation is yet to be finalised and executed.

1.05 Details of significant lease

The company has entered into lease agreement in terms of which it has given buildings on rent on the usual terms and conditions and such payments received for the year have been recognized in the Profit & Loss Account under other income.

1.06 A Dividend of Re.0.30 (Last year Re.0.30) per equity share of Rs.2/- each has been proposed for the current year amounting to Rs. 123 lacs (Last year 123 lacs ) excluding Rs. 20.90 lacs (Last year Rs 19.95 lacs ) of dividend Distribution tax.

1.07 Related party disclosures (Accounting Standard 18) :

A) Subsidiary Company

a) Pudumjee Investment & finance co.Ltd.

B) Associate Firms / Companies

a) M/s. Pudumjee-G : Corp Developers

b) M/s.Prime Developers.

c) Pudumjee Industries Limited.

d) Pudumjee Plant Laboratories Limited.

e) Pudumjee Hygiene Products Limited.

f) Pudumjee Holdings Limited.

C) Key Management personnel Shri.V.P.Leekha

Chief Executive Officer

Shri.S.K.Bansal Wholetime Director

1.08 The following are the disclosures required under revised Accounting Standards (AS) 15 in respect of Employee Benefits :

a) An amount of Rs.139.23 lacs (Last year Rs.127.11 lacs) has been recognized as an expenses for defined contribution plans by way of Company''s contribution to Provident Funds & Super annuation Fund.

b) The defined benefits plans comprise of Gratuity Plan and Leave Encashment Plan.The Gratuity Plan is partly funded with Life Insurance Corporation of India under its Cash Accumulation Plan.

c) Expenses recognized during the year and reconciliation of the Assets & Liabilities recognized in Balance Sheet as at 31.03.2013 :

1.09 The items and figures for the previous year have been recast and regrouped wherever necessary to conform to this year''s presentation.


Mar 31, 2012

Notes:

(a) Excluding Rs. 138.89 lacs (Last year Rs. Nil/-) shown under "Current maturities of Long Term Debt" under Note No.8. Repayble in 18 equal Quarterly installments beginning with 04.02.2013.

(b) Repayble in 18 equal Quarterly installments beginning with 14.08.2013.

(c) Excluding Rs. 180.00 lacs (Last year Rs. Nil/-) shown under "Current maturities of Long Term Debt"under Note No.8. Repayble in 20 equal Quarterly installments beginning with 21.06.2012.

(d) Excluding Rs. 93.68 lacs (Last year Rs. 187.53) shown under "Current maturities of Long Term Debt"under Note No.8. Repayble in 15 equal Quarterly installments beginning with 24.12.2008.

(e) Excluding Rs. Nil (Last year Rs. 240.00 lacs) shown under "Current maturities of Long Term Debt" under Note No.8. Repayble in 10 half yearly installments beginning with 01.10.2007.

(f) There has been no default in repayment of Loan & Payment of Interest in respect of any of aforesaid borrowings.

* Security :

First charge on all immoveable and moveable properties of the Company at its Pune Plant, both present and future subject, however, to the prior charges created and / or to be created by the Company on its (i) immoveables and moveable properties specifically secured and (ii) other movables and book debts in favour of its bankers for securing borrowings for working capital facilities. All these loans shall rank pari passu with the existing and future first charges created in favour of Financial Institutions and Banks.

Notes:

(a) Excluding (i) Rs. 62.20 lacs (Last year Rs. 78.45 lacs) being deposits for 1 year shown under "Short Term Borrowings" under Note No 6, and (ii) Rs. 1771.74 lacs (Last year Rs. 706.40 lacs) shown under "Current maturities of Long Term Fixed Deposits"under Note No.8.

(b) Excluding Rs. 6.62 lacs (Last year Rs. Nil) shown under "Current maturities of "Long Term Unsecured Debts" under Note No. 8.

(c) There has been no default in repayment of Loan & Payment of Interest in respect of any of aforesaid borrowings.

* Repayble after 2 years and 3 years from the date of acceptance of each Deposits.

1.1 Salary, Wages, gratuity and bonus (Schedule 'K') does not include a sum of Rs.109.14 lacs (Last year Rs. 90.41 lacs) transferred to other accounts.

1.2 a) The company has acquired leasehold land,building and board manufacturing machine at Mahad Dist.Raigad, where a Paper machine is also being installed . The leasehold land,colony and buildings are shown under Tengible Fixed Assets schedule (Note No.10) and is appropriately amortized and depreci- ated for the year and Factory Building,Machinery and all other assets together with related expenditure have been shown under Capital work-in-progress.

b) The wind power plant of a capacity of 2.1 MW,included under capital work- in-progress is under installation and is expected to commence operation in the next financial year.

c) Borrowing cost comprising interest etc. of Rs.155.24 lacs (Last year Rs.1.13 Lacs) and the expenses of Rs. 62.73 lacs (Last year Rs.194.87 lacs) relating to the aforesaid projects have been capitalized.

1.3 To the best of knowledge of the company, none of the creditors are 'Small enterprise' within its meaning under clause (m) of section 2 of the Micro,Small and Medium Enterprises Development Act, 2006 & therefore principal amount,interest paid/payable or accrued is NIL.

1.4 Land admeasuring about 3000 Sq.Meters has been acquired by Municipal Corporation for road widening purpose in the earlier years.The Company is entitled to TDR with an out side chance of cash compensation, which is yet to be determined and as such this will be included when finally decided since the relevant documentation is yet to be finalised and executed.

1.5 Details of significant lease

The company has entered into lease agreement in terms of which it has given buildings on rent on the usual terms and conditions and such payments received for the year have been recognized in the Profit & Loss Account under other income.

1.6 a) Contingent Liabilities not provided for in respect of:

AS AT AS AT 31.03.2012 31.03.2011 Rs.in Lacs Rs.in Lacs

i) Bank Guarantees and Letters of Credit in favour of suppliers of raw materials, spares etc.* 1,976.85 2,192.20

ii) Guarantee for other Companies * 736.67 364.56

iii) Claims against the Company not acknowledged as debts for excise duty, property tax and commercial claims etc. ** 725.77 642.30

* Will not affect the future Profitability.

** May affect the future profitability to the extent indicated, if such liabilities crystallise.

b) Commitments not provided for in respect of:

i) Estimate of contracts remaining to be executed on capital account 768.86 2724.08



1.7 Related party disclosures (Accounting Standard 18) :

A) Subsidiary Company

a) Pudumjee Investment & finance co.Ltd.

B) Associate Firms / Companies

a) M/s. Pudumjee-G : Corp Developers

b) M/s.Prime Developers.

c) Pudumjee Industries Limited.

d) Pudumjee Plant Laboratories Limited.

e) Pudumjee Hygine Products Limited.

f) Pudumjee Holdings Limited.

C) Key Management personnel

Shri.M.P.Jatia (Expired on 25-05-2012)

Chairman & Managing Director

Shri.V.P.Leekha

Chief Executive Officer

Shri.S.K.Bansal

Wholetime Director

I) The Paper segment relates to manufacture and marketing of Paper, processing activity.

ii) The Real Estate Activity relates to profit from firm, engaged in Construction Activity.

iii) Power Generation Activity relates ro Generation of Power from D.G.Set and Wind Power Turbine.

iv) The figures in brackets relate to earlier year.

(b) The Firm is engaged in construction and sale of residential flats. It follows completed construction method for the accounting purpose and in view of its first building comprising of 94 flats having been completed during this financial year,the Profit & Loss Account of the Company includes its share of profit from the firm as Rs. 690.60 lacs (Last year Nil )

1.8 The following are the disclosures required under revised Accounting Standards (AS) 15 in respect of Em- ployee Benefits :

a) An amount of Rs. 127.11 lacs (Last year Rs. 115.07 lacs) has been recognized as an expenses for defined contribution plans by way of Company's contribution to Provident Funds & Super annuation Fund.

b) The defined benefits plans comprise of Gratuity Plan and Leave Encashment Plan.The Gratuity Plan is partly funded with Life Insurance Corporation of India under its Cash Accumulation Plan.

1.9 The items and figures for the previous year have been recast and regrouped wherever necessary to conform to this year's presentation.


Mar 31, 2011

1 Contingent Liabilities not provided for in respect of: AS AT AS AT 31.03.2011 31.03.2010 (Rs. in lacs) (Rs. in lacs)

i) Bank Guarantees and Letters of Credit in favour of suppliers of raw materials, spares etc.* 2,192.20 759.24

ii) Guarantee for other Companies * 364.56 161.65

iii) Claims against the Company not acknowledged as debts for excise duty, property tax and commercial claims etc. ** 642.30 639.93

* Will not affect the future Profitability.

** May affect the future profitability to the extent indicated, if such liabilities crystallise.

2 Following significant accounting policies have been adopted in preparation and presentation of the financial statements:

a) Fixed Assets are valued at cost.

b) Borrowing costs comprising interest etc. relating to projects are capitalised up to the date of its completion and other borrowing costs are charged to Profit & Loss Account in the year of their accrual.

c) Depreciation on Machinery & Building has been provided on Straight Line Method and that on the other Assets on Written Down Value method in accordance with Schedule XIV of the Companies Act, 1956 as in force as on the date of Balance Sheet.

d) Finished paper stock is valued at lower of cost or market value. All other inventories are valued at lower of cost on First In First Out Method or realisable value.

e) Investments are classified into current and long term investments.Current investments are stated at lower of cost or fair value.Long term investments are stated at cost, less provision for permanent diminution in value, if any.

f) (i) Contributions to defined contribution schemes,namely,Provident Fund and Supernnuation Fund is made at a pre-determined rates and are charged to the Profit & Loss Account. (ii) Contributions to the defined benefit scheme,namely,Gratuity Fund & provision for the remaining Gratuity and for Leave encashment are made on the basis of actuarial valuations made in accordance with the revised Accounting Standard (AS) 15 at the end of each Financial Year and are charged to the Profit & Loss Account of the year.

(iii) Actuarial gains & losses are recognized immediately in the Profit & Loss Account.

g) Foreign Exchange Transactions are recorded at the then prevailing rate.Closing balances of Assets & Liabilities relating to foreign currency transactions are converted into rupees at the rates prevailing on the date of the Balance Sheet. The difference for transactions are dealt with in the Profit & Loss Account.

h) Revenue recognition is postponed to a later year only when it is not possible to estimate it with reasonable accuracy. i) Factors giving rise to any indication of any impairment of the carrying amount of the company's assets are 8 appraised at each balance sheet date to determine and provide /revert an impairment loss following accounting standard AS 28 for impairment of assets.

(b) The Deferred Tax Asset in respect of carry forward of losses and tax credit has been worked out on the basis of assessment orders, returns of income filed for subsequent assessment years and estimate of the taxable income for the year ending 31st March, 2011.

3 The following amounts which had become due and payable to the credit of The Investor Education and Protection Fund have been so paid and there are no amounts remaining outstanding as at 31st March, 2011 which are to be credited to the fund.

4 Related party disclosures (Accounting Standard 18) :

A) Subsidiary Company

a) Pudumjee Investment & finance co.Ltd.

B) Associate Firms / Companies

a) M/s. Pudumjee-G : Corp Developers

b) M/s. Prime Developers.

c) Pudumjee Industries Limited.

d) Pudumjee Plant Laboratories Limited.

e) Pudumjee Hygiene Products Limited.

C) Key Management personnel

Shri. M. P. Jatia

Chairman & Managing Director

Shri. V. P. Leekha Chief Executive Officer

Shri. S. K. Bansal Wholetime Director

5 Company operates only in one reportable segment i.e. Pulp & Paper.

(b) The firm will recognise profit for the construction of residential complex following completion method in the subsequent year(s), when it will be dealt with by the company in its accounts.

6 The following are the disclosures required under revised Accounting Standards (AS) 15 in respect of Employee Benefits :

a) An amount of Rs.115.07 lacs (Last year Rs.100.31 lacs) has been recognized as an expenses for defined contribution plans by way of Company's contribution to Provident Funds & Super annuation Fund.

b) The defined benefits plans comprise of Gratuity Plan and Leave Encashment Plan.The Gratuity Plan is partly funded with Life Insurance Corporation of India under its Cash Accumulation Plan.

7 The deposits with Banks include Rs.9.00 lacs (Last year Rs.58.85 lacs) being margin money kept with Bank.

8 The items and figures for the previous year have been recast and regrouped wherever necessary to conform to this year's presentation.


Mar 31, 2010

1 Contingent Liabilities not provided for in respect of:

AS AT AS AT

31.03.2010 31.03.2009

(Rs. in lacs) (Rs. in lacs)

i) Bank Guarantees and Letters of Credit in favour of suppliers of raw materials, spares etc.* 759.24 1,669.18

ii) Guarantee for other Companies * 161.65 35.00

iii) Claims against the Company not acknowledged as debts for excise duty, property tax and commercial claims etc. ** 639.93 630.16

* Will not affect the future Profitability.

** May affect the future profitability to the extent indicated, if such liabilities crystallise.

2. Following significant accounting policies have been adopted in preparation and presentation of the financial statements :

a) Fixed Assets are valued at cost.

b) Borrowing costs comprising interest etc. relating to projects are capitalised up to the date of its completion and other borrowing costs are charged to Profit & Loss Account in the year of their accrual.

c) Depreciation on Machinery & Building has been provided on Straight Line Method and that on the other Assets on Written Down Value method in accordance with Schedule XIV of the Companies Act, 1956 as in force as on the date of Balance Sheet. However, No depreciation is provided on capital expenditure incurred in respect of assets owned or that may be owned by the Government authorities.

d) Finished paper stock is valued at lower of cost or market value. All other inventories are valued at lower of cost on First In First Out Method or realisable value.

e) Investments are classified into current and long term investments. Current investments are stated at lower of cost or fair value. Long term investments are stated at cost, less provision for permanent diminution in value, if any.

f) (i) Contributions to defined contribution schemes, namely, Provident Fund and Supernnuation Fund is made at a pre-determined rates and are charged to the Profit & Loss Account.

(ii) Contributions to the defined benefit scheme, namely, Gratuity Fund & provision for the remaining Gratuity and for Leave encashment are made on the basis of actuarial valuations made in accordance with the revised Accounting Standard (AS) 15 at the end of each Financial Year and are charged to the Profit & Loss Account of the year.

(iii) Actuarial gains & losses are recognized immediately in the Profit & Loss Account.

g) Foreign Exchange Transactions are recorded at the then prevailing rate. Closing balances of Assets & Liabilities relating to foreign currency transactions are converted into rupees at the rates prevailing on the date of the Balance Sheet. The difference in transactions are dealt with in the Profit & Loss Account.

h) Miscellaneous Expenditure-Compensation paid under Voluntary Retirement Scheme has been deferred, to be written off over a period of five years.

i) Revenue recognition is postponed to a later year only when it is not possible to estimate it with reasonable accuracy.

j) Factors giving rise to any indication of any impairment of the carrying amount of the companys assets are appraised at each balance sheet date to determine and provide / revert an impairment loss following accounting standard AS 28 for impairment of assets.

(b) The Deferred Tax Asset in respect of carry forward of losses and tax credit has been worked out on the basis of assessment orders, returns of income filed for subsequent assessment years and estimate of the taxable income for the year ending 31st March, 2010.

3. The following amounts which had become due and payable to the credit of The Investor Education and Protection Fund have been so paid and there are no amounts remaining outstanding as at 31st March, 2010 which are to be credited to the fund.

4. The following are the disclosures required under revised Accounting Standards (AS) 15 in respect of Employee Benefits :

a) An amount of Rs.100.31 lacs (Last year Rs.81.55 lacs) has been recognized as an expenses for defined contribution plans by way of Companys contribution to Provident Funds & Super annuation Fund.

b) The defined benefits plans comprise of Gratuity Plan and Leave Encashment Gratuity Plan is partly funded with Life Insurance Corporation of India under its Cash Accumulation Plan.

c) Expenses recognized during the year and reconciliation of the Assets & Liabilities recognized in Balance Sheet as at 31.03.2010 :

5. The deposit with Banks include Rs.58.85 lacs (Last year Rs.7.21 lacs) being margin money kept with Bank.

6. The items and figures for the previous year have been recast and regrouped wherever necessary to conform to this years presentation.

 
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