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Notes to Accounts of Shree Rama Newsprint Ltd.

Mar 31, 2015

1. The Company has classified various employee benefits as under:

A. Defined Contribution Plans

a. Provident fund

b. State defined contribution plans

Employers' Contribution to Employees' State Insurance

The provident fund and the state defined contribution plan are operated by the Regional Provident Fund Commissioner. Under the schemes, the Company is required to contribute a specified percentage of payroll cost to the retirement benefit schemes, to fund the benefits. These funds are recognized by the Income tax authorities.

2 (a). Other Claims against the Company not acknowledged as debts Rs. 5,236.79 Lacs (as on 31.03.2014 Rs. 4,616.85 Lacs).

(b). Unexpired Letter of Credits established in respect of Plant & Machinery, Raw Materials and Stores & Spares Rs. 4.47 Lacs (as on 31.03.2014 Rs. 1,238.41 Lacs)

(c). Bank guarantees issued by banks Rs. 329.91 Lacs (as on 31.03.2014 Rs. 333.33 Lacs).

(d). Arrears of dividend on Cumulative Preference Shares from 15th April 1998 to 15th Dec. 2001 aggregate Rs. 2,069.95Lacs.

3. Estimated amount of contracts remaining to be executed on Capital Account (Net of Advance) Rs. 112.41 lacs (as on 31.03.2014 Rs. 136.11 Lacs ).

4. Interest free Loan under Sales Tax deferral scheme from Government of Gujarat is Rs.667.91 Lacs. out of which Rs. 260.96 Lacs paid on 24th April,2015 and balance Rs. 406.95 Lacs will be due on 31st May 2015.

5. Based on the Information available with the company regarding the status of the suppliers as defined under the Micro Small and Medium Enterprise Development Act, 2006 (The MSMED), no suppliers are outstanding for more than 45days as per the terms & conditions of the order.

6. Balance with Excise Dept. being Cenvat Credit receivable Rs..2,650.35 lacs (as on 31.03.2014 Rs.. 2,640.64 Lacs) is realizable subject to adequate excise duty leviable on finished goods.

7. The company has accounted for sale of 170 acres of its unused land as per the Agreement to Sell executed by the company in the F Y 2013-14 . The Company has received the sale proceeds and also No Objection from the term lenders for aforesaid sale. The requisite formalities / approval for transfer of land are in progress.

8. The accumulated losses of the Company as at 31st March,2015 have exceeded the net worth. The Company will make requisite reference to the BIFR within 60 days from the date of fnalization of the duly audited accounts of the Company by the members at the forthcoming Annual General Meeting, as required under section 15 of the Sick Industrial Companies (Special Provisions) Act, 1985 for determination of the measures to be adopted.

9. The accounts have been prepared on the basis of 'Going Concern Concept' despite continuing losses in the recent past, since as a result of the measures initiated by the Company as mentioned in Note No. 41 & 42 the Management is confident about positive results in the near future.

10. Pursuant to the Share Purchase Agreement (SPA) dated 21st May 2015, the Promoters of the Company have sold an aggregate of 2,82,77,677 shares of the company to Riddhi Siddhi Gluco Biols Ltd. ("The Acquirer") for a consideration aggregating Rs. 1,00,000/- (Rupees One lac only) subject to release of the Corporate Guarantees aggregating to Rs. 246.25 crores given by The West Coast Paper Mills Ltd. ("WCPML") to secure certain loans availed by the Company. Pursuant to the terms of the said SPA, WCPML have also agreed for settlement of their Inter Corporate Deposits (ICDs) amounting to Rs. 52,29,50,389/- given to the Company at Rs. 70,00,000/- (Rupees Seventy Lacs only) and to waive interest on the said ICDs w.e.f. 1st April, 2014.

Accordingly, the ICDs amounting to (Rs.). 51,59,50,389/- stand waived.

11. The Company has called an Extraordinary General meeting of the Shareholders of the Company on 20-06-2015 for approving the issue of 6,00,00,000 Equity Shares in the Company to the incoming Promoters (Acquirer) and Optionally Convertible Redeemable Debentures ("OCD") amounting to Rs. 30,00,00,000/- to ICICI Bank Ltd. on Preferential basis. Upon such issue and allotment of 6,00,00,000 Equity Shares, the net Worth will improve.

12. The Company has not recognized Deferred Tax Asset (DTA)as per AS 22,for the current year. However the DTA created upto 31st March,2014 has not been reversed since the management believes that with infusion of fresh funds and restructuring of the existing debt, there is a virtual certainty about the availability of future taxable income and such deferred tax asset would be realized.

13. The Company's products namely newsprint and writing & printing paper are classified under one segment, hence segment information as per accounting standard 17 is not required to be disclosed.

14. Particulars of Derivative Instruments:

(a) The Company has not entered into any forward contract to offset its foreign currency risks arising from the amounts denominated in currencies other than the Indian Rupee..

(b) No Derivative Instruments are acquired for speculation purpose.

15. Operating Lease

a) Operating Lease payment recognized in statement of Profit & Loss amounting to Rs.. 93.56 Lacs ( Previous Year Rs.. 168.72 Lacs.)

b) General description of leasing arrangement :

i) Leased Assets : Employees Flats, Office Space, etc.

ii) Future lease rentals are determined on the basis of agreed terms.

iii) At the expiry of the lease term, the company has an option either to return the asset or extend the term by giving notice in writing.

16. Previous year figures have been regrouped / rearranged wherever necessary.


Mar 31, 2014

1. The Company has classified various employee benefits as under:

A. Defined Contribution Plans

a. Provident fund

b. State Defined contribution plans

Employers'' Contribution to Employees'' State Insurance

The provident fund and the state Defined contribution plan are operated by the Regional Provident Fund Commissioner. Under the schemes, the Company is required to contribute a specified percentage of payroll cost to the retirement benefit schemes, to fund the benefits. These funds are recognized by the Income tax authorities.

2. Other Claims against the Company not acknowledged as debts Rs. 4,616.85 Lacs (as on 31.03.2013 Rs. 2,281.76 Lacs).

3. Unexpired Letter of Credits established in respect of Plant & Machinery, Raw Materials and Stores & Spares Rs. 1,238.41 Lacs (as on 31.03.2013 Rs. 2,072.24 Lacs)

4. Bank guarantees issued by banks Rs. 333.33 Lacs (as on 31.03.2013 Rs. 256.85 Lacs).

5. Arrears of dividend on Cumulative Preference Shares from 15th April 1998 to 15th Dec. 2001 aggregate Rs. 2,069.95Lacs.

6. Estimated amount of contracts remaining to be executed on Capital Account (Net of Advance) Rs. 136.11 lacs (as on 31.03.2013 Rs. 419.80 Lacs ).

7. Interest free Loan under Sales Tax deferral scheme from Government of Gujarat is repayable in two equal annual installments of Rs. 406.95 Lacs on 31st May 2014 and 2015.

8. In respect of Sundry Creditors which are Micro, Small & Medium Enterprises, the company has not availed credit facility beyond 45 days. There is no outstanding payable to Micro, Small & Medium Enterprises as on the date of Balance Sheet.

No interest is outstanding to any Small Scale or Ancillary Unit as on 31st March, 2014, under the provisions of Interest on Delayed Payments to Small Scale and Ancillary Industrial Undertaking Act, 1993.

9. Balance with Excise Dept. being Cenvat Credit receivable Rs..2,640.64 lacs (as on 31.03.2013 Rs.. 2,623.97 Lacs) is realizable subject to adequate excise duty leviable on fnished goods.

10. The company has accounted for sale of 170 acres of its unused land as per the Agreement to Sell executed by the company. The Company has received substantial portion of the sale proceeds and also No Objection from the term lenders for aforesaid sale.The requisite formalities / approval for transfer of land are in progress.

11. The Company has recognized Deferred Tax Asset as per AS 22, since the management believes that under the improved market scenario coupled with the decisions to infuse fresh funds and leveraging of all surplus assets, there is a virtual certainty about the availability of future taxable income and such deferred tax asset would be realized.

12. Operating Lease

a) Operating Lease payment recognized in statement of Profit & Loss amounting to Rs.. 168.72 Lacs ( Previous Year Rs.. 186.70 Lacs).

b) General description of leasing arrangement :

i) Leased Assets : Employees Flats, office Space, etc. ii) Future lease rentals are determined on the basis of agreed terms.

iii) At the expiry of the lease term, the company has an option either to return the asset or extend the term by giving notice in writing.

13. Previous year figures have been re-grouped / re-arranged wherever necessary.


Mar 31, 2013

1. As notified by Ministry of Corporate Affairs, revised Schedule VI under the Companies Act, 1956 is applicable to the financial statements for the financial year commencing on or after 1st April, 2012. Accordingly, the financial statements for the period ended 31st March, 2013 are prepared in accordance with the revised Schedule VI. The amounts and disclosures included in the financial statements of the previous year have been reclassified to confirm to the requirements of revised Schedule VI.

2. The Company has classified various employee benefits as under: A. Defined Contribution Plans

a. Provident fund

b. State defined contribution plans

Employers'' Contribution to Employees'' State Insurance

The provident fund and the state defined contribution plan are operated by the Regional Provident Fund Commissioner. Under the schemes, the Company is required to contribute a specified percentage of payroll cost to the retirement benefit schemes, to fund the benefits. These funds are recognized by the Income tax authorities.

3. Other Claims against the Company not acknowledged as debts Rs.2,281.76 Lacs (as on 31.03.2012Rs. 1,921.71 Lacs).

4. Unexpired Letter of Credits established in respect of Plant & Machinery, Raw Materials and Stores & Spares Rs. 2,072.24 Lacs (as on 31.03.2012 Rs. 4,720.64 Lacs)

5. Bank guarantees issued by banks Rs. 256.85 Lacs (as on 31.03.2012 Rs. 412.78 Lacs).

6. Arrears of dividend on Cumulative Preference Shares from 15th April 1998 to 15th Dec. 2001 aggregate Rs. 2,069.95Lacs.

7. Estimated amount of contracts remaining to be executed on Capital Account (Net of Advance) Rs. 419.80 lacs (as on 31.03.2012 Rs.100.24 Lacs).

8. Interest free Loan under Sales Tax deferral scheme from Government of Gujarat is repayable in three equal annual installments of Rs. 406.95 Lacs on 31st May 2013, 2014 and 2015.

9. In respect of Sundry Creditors which are Micro, Small & Medium Enterprises, the company has not availed credit facility beyond 45 days. There is no outstanding payable to Micro, Small & Medium Enterprises as on the date of Balance Sheet.

No interest is outstanding to any Small Scale or Ancillary Unit as on 31st March, 2013, under the provisions of Interest on Delayed Payments to Small Scale and Ancillary Industrial Undertaking Act, 1993.

10. Balance with Excise Dept. being Cenvat Credit receivable (Rs. 2,623.97 Lacs) is realizable within one year subject to adequate excise duty leviable on the finished goods i.e. Newsprint and Writing & Printing paper to be produced.

11. Break-up of consumption of imported and indigenous raw materials, chemicals,packing material and stores and spares:

12. The company has entered into an Agreement for Sale of 170 acres of its unused land, subject to requisite approvals.

13. The Company has recognized Deferred Tax Asset as per AS 22, since the management believes that under the improved market scenario coupled with the decisions to infuse fresh funds and leveraging of all surplus assets, there is a virtual certainty about the availability of future taxable income and such deferred tax asset would be realized.

14. The Company''s products namely Newsprint and Writing & Printing paper are classified under one segment.

15. Related Party Disclosures:

i) Related Party Relationship

a) Enterprises who exercise control The West Coast Paper Mills Ltd.

b) Key Management Personnel P.S. Maharaj - Executive Director

c) Enterprises owned or significantly influenced by Relatives of Key Management Personnel

Note: In respect of above parties, there is no provision of doubtful debts as on 31stMarch, 2013 and no amount has been written off or written back during the year in respect of debts due from/to them.

16. Previous year figures have been re-grouped / re-arranged wherever necessary.


Mar 31, 2012

A) Reconciliation of Shares Outstanding during the year

No Shares have been issued or bought back during the current and previous years.

b) Terms/Rights attached to Equity Shares

The Company has only one class of equity shares having a par value of Rs. 10 per share. Each holder of equity share is entitled to one vote per share.

In the event of liqudation of the company, the holders of equty shares will be entitled to receive remaining assets of the company, after distribution of all preferential amounts. The distribution will be in proportion to number of equity shares held by shareholders.

d) Aggregate number of bonus shares issued, shares issued for consideration other than cash and shares bought back during the period of five years immediately preceding the reporting date During the period of preceding five years the company has not:

- allotted any shares without payment being received in cash,

- allotted any shares by way of bonus shares and

- bought back any shares.

1) The Term Loan and Working Capital Term Loan are secured by first charge ranking pari passu on all immovable properties of the company, both present and future and hypothecation of all Company's moveable machinery,spares,tools and accessories,present and future, subject to prior charges created on Company's stock of raw materials, stock in process, finished goods, comsumable stores etc. in favour of the Company's bankers for securing borrowings for working capital requirements, and Corporate guarantee by The West Coast Paper Mills Ltd.

2) The Rupee Term Loan and Working Capital Term Loan from ICICI Bank are to be repaid in thirty two/ sixteen quarterly installments respectively commencing from 31.07.2013.

3) Interest on Term Loan and Working Capital Term Loan on ICICI Bank is in arrears since 31.01.2012 aggregating to Rs. 546.40 lac.

Cash Credit (repayable on demand) is secured by hypothecation of the Company's stock of finished goods, stock in process,raw materials, stores and spares,book debts,etc.and by a second charge created on all immovable properties of the company, present and future.

1. As notified by Ministry of Corporate Affairs, Revised Schedule VI under the Companies Act, 1956 is applicable to the financial statements for the financial year commencing on or after 1st April, 2011. Accordingly, the financial statements for the period ended 31st March, 2012 are prepared in accordance with the revised Schedule VI. The amounts and disclosures included in the financial statements of the previous year have been reclassified to confirm to the requirements of revised Schedule VI.

2. The Company has classified various employee benefits as under:

A. Defined Contribution Plans

a) Provident fund

b) State defined contribution plans

Employers Contribution to Employees' State Insurance

The provident fund and the state defined contribution plan are operated by the Regional Provident Fund Commissioner. Under the schemes, the Company is required to contribute a specified percentage of payroll cost to the retirement benefit schemes, to fund the benefits. These funds are recognized by the Income tax authorities.

B. Defined Benefit Plans

a. Gratuity

b. Leave Encashment

Leave encashment is payable to eligible employees who have earned leaves, during the employment and/or on separation as per the company's policy.

3. Claims against the Company not acknowledged as debts Rs.1921.71 Lac (as on 31.03.2011 Rs. 1,620.93 Lac).

4. Estimated amount of contracts remaining to be executed on Capital Account (Net of Advance) Rs.100.24 lac (as on 31.03.2011 NIL).

5. Unexpired Letter of Credits established in respect of Plant & Machinery, Raw Materials and Stores & Spares Rs. 4,720.64 Lac (as on 31.03.2011 Rs. 6,349.24 Lac)

6. Bank guarantees issued by banks is 412.78 Lac (as on 31.03.2011 Rs. 223.17 Lac).

7. Arrears of dividend on Cumulative Preference Shares from 15th April 1998 to 15th Dec. 2001 aggregate Rs. 2,069.95 Lac.

8. The Company had created Contingency Reserve representing the remission granted by CDR members (except those with whom one time settlement was made) in principal loan amount under the CDR scheme on 27th September,2003. As per the terms of the said CDR scheme the remission granted by the CDR members could be retrospectively revoked on certain events of default. As the company has repaid dues of all the CDR members, except Arcil and there being no events of default, the said Contingency Reserve amounting to Rs. 11765.48 Lac is credited to Statement of Profit and Loss.

9. Interest free Loan under Sales Tax deferral scheme from Government of Gujarat is repayable in Six equal annual installments of Rs. 406.95 Lac starting from 31.05.2010.

10. In respect of Sundry Creditors which are Micro, Small & Medium Enterprises, the company has not availed credit facility beyond 45 days. There is no outstanding payable to Micro, Small & Medium Enterprises as on the date of Balance Sheet.

No interest is outstanding to any Small Scale or Ancillary Unit as on 31st March, 2012, under the provisions of Interest on Delayed Payments to Small Scale and Ancillary Industrial Undertaking Act, 1993.

11. Balance with Excise Department being Cenvat Credit receivable (Rs. 2614.19 lac) is realizable within one year subject to adequate excise duty leviable on the finished goods i.e. newsprint and writing & printing paper to be produced.

12. The Company had recognized Deferred Tax Asset in earlier years pursuant to Accounting Standard 22. However, in view of the loss incurred by the Company and as a matter of prudence, the Deferred Tax Asset outstanding as on 31-03-2010 was written-off during 2010-11.

The Company has now decided to again recognize Deferred Tax Asset as on 31-03-2012, since the management strongly believes that under the improved market scenario coupled with the decisions to infuse fresh funds and leveraging of all surplus assets, there is a virtual certainty about the availability of future taxable income and such Deferred Tax Asset would be realized.

13. The Company's products namely newsprint and writing & printing paper are classified under one segment.

14. Previous year figures have been regrouped / rearranged wherever necessary.


Mar 31, 2011

1. The Company has classified various employee benefits as under:

(A) Defined Contribution Plans

a. Provident fund

b. State defined contribution plans

Employers' Contribution to Employees' State Insurance

The provident fund and the state defined contribution plan are operated by the Regional Provident Fund Commissioner. Under the schemes, the Company is required to contribute a specified percentage of payroll cost to the retirement benefit schemes, to fund the benefits. These funds are recognized by the Income tax authorities.

The Company has recognized the following amounts in the Profit and Loss Account.

2. Claims against the Company not acknowledged as debts Rs. 1,620.93 Lacs (as on 31.03.2010 Rs. 1,523.47 Lacs).

3. Estimated amount of contracts remaining to be executed on Capital Account (Net of Advance) NIL (as on 31.03.2010 NIL).

4. Unexpired Letter of Credits established in respect of Plant & Machinery, Raw Materials and Stores & Spares Rs. 6,349.24 Lacs (as on 31.03.2010 Rs. 3,697.62 Lacs)

5. Bank guarantees issued by banks Rs. 223.17Lacs (as on 31.03.2010 Rs. 1,158.04 Lacs).

6. Arrears of dividend on Cumulative Preference Shares from 15th April 1998 to 15th Dec. 2001 aggregate Rs. 2,069.95Lacs.

7. Interest free Loan under Sales Tax deferral scheme from Government of Gujarat is repayable in Six equal annual installments of Rs. 406.95 Lacs starting from 31.05.2010.

8. Contingency reserve represents remission granted by CDR members (except those with whom one time settlement was made) in principal loan amount to the Restructuring Scheme approved by the Corporate Debt Restructuring Cell on 27th Sept.2003.The said Scheme of Restructuring stipulates repayment of outstanding Loans in installments ending on 15th August 2012 and a Corporate guarantee from The West Coast Paper Mills Ltd. As additional Security and that on certain special events of default, the remission granted would be retrospectively revoked.

9. In respect of Sundry Creditors which are Micro, Small & Medium Enterprises, the company has not availed credit facility beyond 45 days. There is no outstanding payable to Micro, Small & Medium Enterprises as on the date of Balance Sheet.

No interest is outstanding to any Small Scale or Ancillary Unit as on 31st March, 2011, under the provisions of Interest on Delayed Payments to Small Scale and Ancillary Industrial Undertaking Act, 1993.

10. Exchange difference (net) Credit of Rs. 216.13 Lacs (previous year (net) Credit Rs. 604.66Lacs) has been included in respective heads of accounts in Profit and Loss account.

11. Deferred Taxation

The Company had recognized Deferred Tax Asset in earlier years pursuant to Accounting Standard-22. However, in the absence of virtual certainty about the availability of future taxable income to realize the Deferred Tax Asset as on 31-03-2011 and as a matter of prudence, the Deferred Tax Asset amounting to Rs. 6168.20 Lacs as on 31-03-2010 has been written off during the,year. As per the accounting policy being followed by the Company, the Company would again create Deferred Tax Asset, to the extent there is a virtual certainty of realization of the same in future.

12. The Company's products namely Newsprint and Writing & Printing paper are classified under one segment.

13. Related Party Disclosures:

i) Related Party Relationships

a) Enterprises who exercise control The West Coast Paper Mills Ltd.

b) Key Management Personnel Shri V.D.Bajaj-Executive Director (upto 8th January, 2011)

ShriVs.Maharaj-Executive Director (from 16th Dec., 2010)

c) Enterprises owned or significantly influenced Sai Jyoti Paper Products Pvt. Ltd. by Relatives of Key Management Shrinath Printers Pvt.Ltd. Personnel

14. Previous year figures have been regrouped rearranged wherever necessary.

 
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