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Notes to Accounts of Seshasayee Paper & Boards Ltd.

Mar 31, 2015

1 SEGMENT

Paper is the only reportable segment of operation of the Company.

2 REGROUPING OF FIGURES

Figures for the previous year have been re-grouped, wherever necessary, to conform to current year's classification.

As at As at 31-3-2015 31-3-2014 Rs. lakhs Rs. lakhs

3 Contingent Liabilities and Commitments not provided for

(i) Contingent Liabilities :

(a) Claims against the Company not acknowledged as debts

(1) Demands relating to Central Excise, Customs duty, Service Tax and VAT contested and appeals pending before High Court, CESTAT and other Appellate Authorities 2636.91 2599.41

(2) Income Tax demand contested and appeals pending before High Court and CIT (A) 763.52 763.52

(3) Others- Demands contested and pending before High Court and other Appellate Authorities 2518.54 2015.46

(b) Guarantees 19.50 9.00

(ii) Commitments :

(a) Estimated amount of contracts remaining to be executed on capital account and not provided for 1640.47 351.37

(b) Export obligation in respect of imports cleared under Export Promotion Capital Goods Scheme 0.00 37.75

4 The Depreciation for the year ended March 31, 2015 has been charged as per the revised requirement under the Companies Act, 2013 with effect from April 01,2014. The amount of depreciation is lower by Rs. 1968.03 lakhs, consequent to such change.

5 Plant and Machinery on Lease to Others under Note No. 8 - Fixed Assets, represent assets acquired and given on lease prior to 2001 whose primary lease period was also over during 2001.

In respect of assets taken on lease no substantial risk and reward incidental to ownership of an asset has been obtained.

All lease agreements are cancellable at the option of the Company.

6 Disclosure of Related Party transactions, as required under Accounting Standard (AS) 18

(i) Name of the Related Parties and description of relationship between the parties :

a) Control

* Esvi International (Engineers & Exporters) Limited (ESVIN)

* SPB Equity Shares Trust

b) Presumption of significant influence

* Ponni Sugars(Erode) Limited (PEL)

* SPB Projects and Consultancy Limited (SPB-PC)

* Time Square Investments Private Limited (TSI)

* Dhanashree Investments Private Limited (DSI)

* Ultra Investments and Leasing Co. Private Limited (UIL)

c) Key Management Personnel

* Sri N Gopalaratnam, Chairman

* Sri K S Kasi Viswanathan, Managing Director

* Sri V Pichai, Deputy Managing Director & Secretary


Mar 31, 2014

1 SEGMENT

Paper is the only reportable segment of operation of the Company.

2 REGROUPING OF FIGURES

Figures for the previous year have been re-grouped, wherever necessary, to conform to current year''s classification.

3 Contingent Liabilities and Commitments not provided for

(i) Contingent Liabilities :

(a) Claims against the Company not acknowledged as debts 3279.31 1538.86

(b) Guarantees 9.00 9.50

(ii) Commitments :

(a) Estimated amount of contracts remaining to be executed on capital account and not provided for 351.37 179.18

(b) Export obligation in respect of imports cleared under Export Promotion Capital Goods Scheme 37.75 3434.42

4 Disclosure of Related Party transactions, as required under Accounting Standard (AS) 18 of The Companies (Accounting Standards) Rules, 2006

(i) Name of the Related Parties :

- Sri N Gopalaratnam, Chairman and Managing Director

- Sri K S Kasi Viswanathan, Deputy Managing Director

- Sri V Pichai, Director (Finance) & Secretary

- Esvi International (Engineers & Exporters ) Limited (ESVIN)

- SPB Equity Shares Trust

(ii) Description of relationship between the parties :

Control.


Mar 31, 2013

1 SEGMENT

Paper is the only reportable segment of operation of the Company.

2 SCHEME OF AMALGAMATION

A) Disclosure in respect of Amalgamation in accordance with Accounting Standard (AS) 14 - Accounting for Amalgamations

a) Names and general nature of Business of the Amalgamating Companies:

Names:

Transferor Company - SPB Papers Limited

Transferee Company - Seshasayee Paper and Boards Limited

General nature of Business:

Transferor Company - Manufacture of Printing & Writing paper

Transferee Company - Manufacture of Printing & Writing Paper and Paper Boards

b) Effective date of Amalgamation for accounting purposes : 01-04-2012

c) Method of Accounting used to reflect Amalgamation : Purchase Method

d) Particulars of the Scheme sanctioned :

i) The Authorised Share Capital of the Transferee Company is increased by transfer of the Authorised Share Capital of the Transferor Company aggregating Rs.1 500 lakhs, comprising of 1 50 00 000 Equity Shares of ` 10/-each.

ii) The Equity shareholders of Transferor Company will be allotted 1 Equity Share of Rs.10/-each, of the Transferee Company as fully paid up for every 11 Equity Shares of Rs.10/-each held by them in the Transferror Company.

iii) 13 63 238 Equity Shares of Rs.10/-each are to be issued as fully paid up to the Equity Shareholders of Transferor Company.

iv) The Value of all assets and liabilities (other than Shareholders'' Funds) of the Transferor Company, as on the appointed date, at their respective fair values vest with the Transferee Company.

v) The Inter-Corporate deposits/loans and advances, receivables/payables outstanding as on the Appointed date between the Transferee Company and Transferor Company shall stand cancelled.

vi) Consideration for the Amlagamation and a description of the Consideration paid:

a) 13 63 628 Equity Shares of Rs.10/-each fully paid-up (pending allotment) : Rs.136 lakhs Less:

Value of Net Assets of Transferor Company transferred-at fair value : ` 3801 lakhs Surplus credited to Capital Reserve : Rs.3665 lakhs

b) Contingently Payable : NIL

vii) In terms of the Scheme the Transferor Company continued the Operations as Trustee of Transferee Company. The results of such operations have been duly incorporated in the accounts of the Transferee Company.

B) The Scheme of Amlgamation between Transferror Company with Transferee Company was sanctioned by the Hon''ble High Court of Madras, vide its Order dated 26.04.2013, a certfied copy of which has been filed with the Registrar of Companies,Chennai on 24.05.2013 and accordingly these accounts have been prepared giving effect to the Scheme of Amalgamation.

C) Consequent to the Amalgamation, the carried forward losses and unabsorbed depreciation of Transferror Company are eligible to be adjusted against the income of the Transferee Company in accordance with Section 72A of the Income Tax Act, 1961. Such carried forward benefits adjusted in the current year to the extent of income amount to Rs.28.39 crores.

D) Shares of the Transferor Company that are held by the Transferee Company have been transferred to SPB Equity Trust exclusively for the benefit of the Transferee company and its Successors.The value of such assets is recognised under Long Term Loans and Advances in Note No 9(d).

3 REGROUPING OF FIGURES

Current Year''s figures are not comparable with previous year''s figures due to amalgamation of the Transferor Company with the Transferee Company with effect from 1st April 2012.

4 Disclosure of Related Party transactions, as required under Accounting Standard (AS) 18 of The Companies (Accounting Standards) Rules, 2006

(i) Name of the Related Parties :

- Sri N Gopalaratnam, Chairman and Managing Director

- Ponni Sugars (Erode) Limited (PEL)

- High Energy Batteries (India) Limited (HEB)

- SPB Projects and Consultancy Limited (SPB-PC)

- Time Square Investments Private Limited (TSI)

- Esvi International (Engineers & Exporters ) Limited (ESVIN)

- Sri K S Kasi Viswanathan, Deputy Managing Director

- Sri V Pichai, Director (Finance) & Secretary

(ii) Description of relationship between the parties :

Presumption of significant influence.


Mar 31, 2012

1 SEGMENT

Paper is the only reportable segment of operation of the Company.

2 Contingent Liabilities and Commitments not provided for

(i) Contingent Liabilities :

(a) Claims against the Company not

acknowledged as debts 1457.52 1780.48 (b) Guarantees 11.25 12.43 (ii) Commitments : (a) Estimated amount of contracts remaining to be executed on capital account and not provided for 249.04 182.82

3 Disclosure of Related Party transactions, as required under Accounting Standard (AS) 18 of The Companies (Accounting Standards) Rules, 2006

(i) Name of the Related Parties :

- Sri N Gopalaratnam, Chairman and Managing Director

- Ponni Sugars (Erode) Limited (PEL)

- High Energy Batteries (India) Limited (HEB)

- SPB Projects and Consultancy Limited (SPB-PC)

- Time Square Investments Private Limited (TSI)

- SPB Papers Limited (SPBPL)

- Sri K S Kasi Viswanathan, Deputy Managing Director 0 Sri V Pichai,Director (Finance) & Secretary

(ii) Description of relationship between the parties :

Presumption of significant influence.


Mar 31, 2011

1 Paper is the only reportable segment of operation of the Company.

2 Figures for the previous year have been re-grouped, wherever necessary, to conform to current years classification.

31-3-2011 31-3-2010 Rs. lakhs Rs. lakhs

3 Contingent liabilities on account of Guarantees given by Banks on behalf of the Company. 12.43 37.36

4 The Company calls for information from all suppliers with regard to their registration with the specified authority under the Micro, Small and Medium Enterprises Development Act, 2006. The Company has a policy of paying the dues within the generally prescribed credit terms.

5 (a) During the year, the Company, acquired 62 50 000 Equity Shares of Rs. 10 each, constituting 41.67% of the total Equity Capital of Subburaj Papers Limited (SPL), a 90 000 tonnes per annum secondary pulp based paper mill located near Tirunelveli in Tamilnadu.

(b) The Company has availed unsecured Short Term Loan of Rs. 210 crores from Canara Bank and advanced to SPL a sum of Rs. 180 crores to enable them to make One Time Settlement (OTS) with their consortium Banks.

(c) Loans to Other Corporates in Schedule I includes Rs. 180 crores advanced to SPL.

6 Employee Cost for the year under review includes a sum of Rs. 629.34 lakhs, being the arrears of salary paid to the employees, consequent to the long term wage settlement entered into with Trade Unions effective April 01, 2009.

7 Plant and Machinery on Lease to Others under Schedule D- Fixed Assets, represent assets acquired and given on lease prior to 2001 whose primary lease period was also over during 2001.

In respect of assets taken on lease no substantial risk and reward incidental to ownership of an asset has been obtained.

All lease agreements are cancellable at the option of the Company.

8 Disclosure of Related Party transactions, as required under Accounting Standard (AS) 18 of The Companies (Accounting Standards) Rules, 2006 :

(i) Name of the transacting Related Parties :

- Sri N Gopalaratnam, Chairman and Managing Director of the Company

- Ponni Sugars (Erode) Limited (PEL)

- High Energy Batteries (India) Limited (HEB)

- SPB Projects and Consultancy Limited (SPB-PC)

- Time Square Investments Private Limited (TSI)

- Subburaj Papers Limited (SPL)

- Sri K S Kasi Viswanathan, Deputy Managing Director

- Sri V Pichai, Director (Finance) & Secretary

(ii) A description of the relationship between the parties :

Presumption of significant influence.

 
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