Notes to Accounts of Shree Rama Newsprint Ltd.

Mar 31, 2018

1. Corporate Information:

Shree Rama Newsprint Limited (“the Company”) is a public company incorporated and domiciled in India. It is engaged in the business of manufacturing and selling of Newsprint and Writing & printing papers. The Company’s equity share is listed on the Bombay Stock Exchange Ltd. and National Stock Exchange of India Ltd.

(i) Rights, Preferences and Restrictions attached to equity shares

The Company has one class of equity shares having a par value of Rs. 10 per share. Each shareholder is eligible for one vote per share held. The dividend, if any proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting, except in case of interim dividend. In the event of liquidation, the equity shareholders are eligible to receive the remaining assets of the Company after distribution of all preferential amounts, if any, in proportion to their shareholding.

(ii) Company has not reserved any share for issue under options and contracts or commitments for the sale of shares or disinvestment.

Notes :

A) The Term Loans are secured by first charge ranking pari passu over all the present and future moveable and immovable property, plant and equipments of the Company and second pari passu charge on all present and future current assets.

B) Non convertible secured debenture holders are having first charge on future property, plant and equipments of the Company and pari passu second charge on existing property, plant and equipments of the Company.

C) There is no default in repayment of loans and interest.

D) Financial Covenants for Term Loan from ICICI Bank Ltd.:

Financial covenants to be monitored annually on the basis of audited SFS. 1st testing to be done on 31/10/2018. Total debt/Total Net Worth to be as follows :

FY 2018 : 7.0

FY 2019 : 5.0

FY 2020 and beyond : 4.0

Note :

a) Loan Repayable on Demand from Banks are secured by hypothecation of stocks of finished goods, stock in process, raw materials, stores and spares and receivables on first pari passu charge basis and by a pari passu second charge on existing property, plant and equipments of the company and pari passu first charge on the future property, plant and equipments of the Company.

b) Unsecured Loan Repayable on demand is guaranteed by Riddhi Siddhi Gluco Biols Limited (Holding Company)

c) There is no default in repayment of loans and interest.

d) The carrying amounts of financial and non-financial assets i.e. Property, plant and equipment, Inventory & Current Assets are hypothicated as security for current & non-current borrowings.

Note :- Company had made provision for liability for Export obligation of Rs. 58.66 Lakhs in March 2016 and also remaining 50% of Rs. 58.66 Lakhs in March 17.

Note: All dividends from equity investments designated at FVOCI relate to investments held at the end of the reporting period. There are no dividend income relating to investments derecognised during the reporting period.

2. EMPLOYEE BENEFITS:

Defined Benefit Plans

The Company offers the following employee benefit schemes to its employees.

Gratuity: The Company has a defined benefit gratuity plan. Every employee who has completed five years or more of service gets a gratuity on departure at 15 days salary (last drawn salary) for each completed year of service. The scheme is funded.

Risk Exposure: The defined benefit plans exposes the Company to actuarial risk, such as longevity risk, interest rate risk and market (investment) risk. The Company actively monitors how the duration and the expected yield of investments are matching the expected cash outflows arising from the employee benefit obligations. The Company has not changed the processes used to manage its risks from previous periods and monitors such obligation on regular basis.

Principal actuarial assumptions

Principal actuarial assumptions used to determine the present value of the defined benefit obligation are as follows:

The following table sets out the funded status of the defined benefit schemes and the amount recognised in the financial statements:

The sensitivity analyses above have been determined based on reasonably possible changes of the respective assumptions occurring at the end of the reporting period and may not be representative of the actual change. It is based on a change in the key assumption while holding all other assumptions constant. When calculating the sensitivity to the assumption, the method (Projected Unit Credit Method) used to calculate the liability recognised in the balance sheet has been applied. The methods and types of assumptions used in preparing the sensitivity analysis did not change compared with the previous period.

During the year company has not recognized any deffered tax assets on account of unabsorbed losses and Depreciation. DTA created during the year on item of Property plant and Equipments, Investments and amortization expenses have been recognized to the extent of Deferred tax liabilities of the previous years and any excess DTA has not been recognized in the books as there is no virtual certainity for absorption of the same from future taxable income.

Fair value hierarchy

Level 1: Level 1 hierarchy includes financial instruments measured using quoted prices. This includes listed equity instruments and mutual funds that have quoted price. The fair value of all equity instruments which are traded in the stock exchanges is valued using the closing price as at the reporting period. The mutual funds are valued using the closing NAV and listed equity instruments are being valued at the closing prices on recognised stock exchange.

Level 2: The fair value of financial instruments that are not traded in an active market (for example, traded bonds, over-the counter derivatives) is determined using valuation techniques which maximize the use of observable market data and rely as little as possible on entity-specific estimates. If all significant inputs required to fair value an instrument are observable, the instrument is included in level 2.

Level 3: If one or more of the significant inputs is not based on observable market data, the instrument is included in level 3. This is the case for unlisted equity securities, contingent consideration and indemnification asset included in level 3.

The Company’s policy is to recognise transfers into and transfers out of fair value hierarchy levels as at the end of the reporting period.

3. FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES

The Company’s activities expose it to a variety of financial risks, including market risk, credit risk and liquidity risk. The Company’s primary risk management focus is to minimize potential adverse effects of market risk on its financial performance. The Company’s risk management assessment and policies and processes are established to identify and analyze the risks faced by the Company, to set appropriate risk limits and controls, and to monitor such risks and compliance with the same. Risk assessment and management policies and processes are reviewed regularly to reflect changes in market conditions and the Company’s activities. The Board of Directors and the Audit Committee is responsible for overseeing the Company’s risk assessment and management policies and processes.

The Company’s financial risk management policy is set by the management. Market risk is the risk of loss of future earnings, fair values or future cash flows that may result from a change in the price of a financial instrument. The value of a financial instrument may change as a result of changes in the interest rates, foreign currency exchange rates, equity prices and other market changes that affect market risk sensitive instruments. The Company manages market risk which evaluates and exercises independent control over the entire process of market risk management. The management recommend risk management objectives and policies, which are approved by Senior Management and the Audit Committee.

a. Credit risk

Credit risk is the risk of financial loss to the Company if a customer or counterparty to a financial instrument fails to meet its contractual obligations, and arises principally from the Company’s receivables from customers. Credit risk arises from cash held with banks as well as credit exposure to clients, including outstanding accounts receivable. The maximum exposure to credit risk is equal to the carrying value of the financial assets. The objective of managing counterparty credit risk is to prevent losses in financial assets. The Company assesses the credit quality of the counterparties, taking into account their financial position, past experience and other factors. The Company establishes an allowance for doubtful debts and impairment that represents its estimate of incurred losses in respect of trade and other receivables and investments.

The Company’s exposure to credit risk is influenced mainly by the individual characteristics of each customer. The demographics of the customer, including the default risk of the industry and country in which the customer operates, also has an influence on credit risk assessment. Credit risk is managed through continuously monitoring the creditworthiness of customers to which the Company grants credit terms in the normal course of business. An impairment analysis is performed at each reporting date on an individual basis for major customers. The Company also hold security deposits for outstanding trade receivables. The history of trade receivables shows a negligible provision for bad and doubtful debts.

b. Liquidity risk

Liquidity risk is the risk that the Company will not be able to meet its financial obligations as they become due. The Company manages its liquidity risk by ensuring, as far as possible, that it will always have sufficient liquidity to meet its liabilities when due.

Maturities of financial liabilities

The tables below analyze the company’s financial liabilities into relevant maturity groupings based on their contractual maturities:

c. Market risk

Market risk is the risk of loss of future earnings, fair values or future cash flows that may result from adverse changes in market rates and prices (such as interest rates, foreign currency exchange rates and commodity prices) or in the price of market risk-sensitive instruments as a result of such adverse changes in market rates and prices. Market risk is attributable to all market risk-sensitive financial instruments and all short term and long-term debt. The Company is exposed to market risk primarily related to foreign exchange rate risk, interest rate risk and the market value of its investments. Thus, the Company’s exposure to market risk is a function of investing and borrowing activities.

d. Foreign exchange risk

Foreign currency risk is the risk that the fair value or future cash flows of an exposure will fluctuate because of changes in foreign exchange rates.

The Company’s foreign exchange risk arises from its foreign currency borrowings (primarily in USD). As a result, if the value of the Indian rupee appreciates relative to these foreign currencies, the Company’s revenues measured in Indian rupees may decrease.

The above foreign currency exposures are not hedged by the derivative instruments.

The sensitivity of profit or loss due to changes in the exchange rates arises mainly from non-derivative foreign currency denominated financial instruments (mainly financial instruments denominated in USD). The same is summarized as below:

Interest rate risk

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. However the company’s exposure to foreign currency loan is of fixed interest rate.

The Company’s investments in term deposits (i.e., margin money) with banks are for short durations, and therefore do not expose the Company to significant interest rates risk.

(i) Interest rate risk exposure

The exposure of the company’s borrowing to interest rate changes at the end of the reporting period are as follows:

4. The Company is mainly engaged in newsprint and writing & Printing paper business in India and there is no other reportable business and geographical segment.

5. There was a major fire on 13 May, 2018 in the waste paper kept in open aera at the Factory, due to which a significant portion of the same has been burnt in fire. The insurance survey and estimate of its financial impact is under process.

6. CAPITAL MANAGEMENT:

a) Risk Management:

The Company aim to manages its capital efficiently so as to safeguard its ability to continue as a going concern and to optimise returns to our shareholders and benefits for other stakeholders and maintain an optimal capital structure to reduce the cost of capital.

The capital structure of the Company is based on management’s judgement of the appropriate balance of key elements in order to meet its strategic and day-to-day needs. We consider the amount of capital in proportion to risk and manage the capital structure in light of changes in economic conditions and the risk characteristics of the underlying assets. In order to maintain or adjust the capital structure, the Company may adjust the amount of dividends paid to shareholders, return capital to shareholders, issue new shares or sell assets to reduce debt.

The Company’s policy is to maintain a stable and strong capital structure with a focus on total equity so as to maintain investor, creditors and market confidence and to sustain future development and growth of its business. The Company will take appropriate steps in order to maintain, or if necessary adjust, its capital structure.

b) Dividends:

The Company has not recommended any dividend during the year in view of losses suffered by the Company.

7. Figures for the previous year have been regrouped / rearranged, wherever necessary, to conform to current year’s classification.

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Mar 31, 2016

All other derivative contracts are marked to market and losses are recognized in the Statement of Profit and Loss. Gains arising on the same are not recognized, until realized on the grounds of prudence. p) Provisions, Contingent Liabilities and Contingent Assets:

A provision is recognized when the Company has a present legal or constructive obligation as a result of past event and it is probable that an outflow of resources will be required to settle the obligation, in respect of which reliable estimate can be made. Provisions (excluding long term benefits) are not discounted to its present value and are determined based on best estimates required to settle the obligation at the balance sheet date. These are reviewed at each balance sheet date and adjusted to reflect the current best estimates.

A contingent liability is a possible obligation that arises from past events whose existence will be confirmed by the occurrence or non-occurrence of one or more uncertain future events beyond the control of the Company or a present obligation that is not recognized because it is not probable that an outflow of resources will be required to settle the obligation. A contingent liability also arises in extremely rare cases where there is a liability that cannot be recognized because it cannot be measured reliably. The Company does not recognize a contingent liability but discloses its existence in the financial statements. Claims against the Company, where the possibility of any outflow of resources in settlement is remote, are not disclosed as contingent liabilities.

Contingent assets are neither recognized nor disclosed, in the financial statements q) Employee Benefits

The Company has classified various employee benefits as under:

A. Defined Contribution Plans

a. Provident fund

b. Employers’ Contribution to Employees’ State Insurance

Retirement benefits in the form of Provident Fund and Employers’ Contribution to Employee State Insurance is a defined contribution scheme and the contributions are charged to the Statement of Profit and Loss in the year when the contributions to the respective funds are due. There are no other obligations other than the contribution payable to the respective funds.

B. Defined Benefit Plans

The Company also provides for retirement/post-retirement benefits in the form of gratuity & Leave encashment.

The liability for the defined benefits plan of Gratuity is determined on the basis of an actuarial valuation carried out by an independent actuary at the yearend using Projected Unit Credit Method.

Obligation is measured at the present value of the future cash flows using a discount rate that is based on the prevailing yields of Government of India securities as at the Balance Sheet date for the estimated term of the obligations Leave encashment (unfunded) is payable to eligible employees who have earned leaves, during the employment and/ or on separation as per the Company’s policy.

C. Actuarial gains/losses are charged to Statement of profit and loss and are not deferred.

D. Other short term employee benefits are recognized as an expense on accrual basis.

r) Leases

Leases, where Company is the lessee and the lessor effectively retains substantially all the risks and benefits of ownership of the leased item, are classified as operating leases. Operating lease payments are recognized as an expense in the Statement of Profit and Loss on a straight line basis over the lease term.

1. During the year the Company has booked profit of Rs. 1,460.00 Lacs on account of additional consideration of sale of 170 acres unused land as per the Deed of Conveyance executed by Company. Further, the Company has also obtained the requisite approval for transfer of land from the government of Gujarat.

2. The erstwhile promoter of the Company had executed Share Purchase Agreement (SPA) on 21^st May 2015 for sale of an aggregate of 2,82,77,677 shares of the Company to Riddhi Siddhi Gluco Biols Ltd. (“The Acquirer”) for a consideration aggregating to Rs. 1 Lac only, subject to release of the Corporate Guarantees etc. The terms and condition of SPA is compiled and entire transaction was completed on 26-08-2015 after transfer of shares in favour of “The Acquirer” and release of corporate guarantees, etc.

3. The Company has not recognized Deferred Tax Asset (DTA) as per Accounting Standard 22- ‘Accounting for taxes on income’ 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 certainty about the availability of future taxable income and such deferred tax asset would be realized.

4. The Company is mainly engaged in newsprint and writing & printing paper business in India and there is no other reportable business and geographical segment as required by Accounting Standard - 17 “Segment Reporting”.

5. Particulars of Derivative Instruments:

(a) The Company has entered into forward contract of USD 4.57 lacs (Previous Year - Rs. Nil) to offset its foreign currency risks related to buyers credit denominated in currencies other than the Indian Rupee..

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

(c) Foreign currency exposures that are not hedged by the derivative instruments or otherwise are:

6. Operating Lease

a) Operating Lease payment recognized in statement of Profit & Loss amounting to Rs. 39.88 lacs (Previous Year Rs. 93.56 lacs)

7. The Company had written off Inter Corporate Deposits of Rs. 5,159.50 lacs given by The West Coast Paper Mills Ltd. in accounting year 2014-15 in pursuance to Share Purchase Agreement dated 21/05/2015.

8. The Company has raised Rs. 6,000 lacs by way of preferential issue of equity shares and Rs. 3,000 lacs by way of unlisted Zero coupon - OFC issue both totaling to Rs. 9,000 lacs during the year 2015-16 apart from borrowings restructured as per JLF decision on 31/03/2015 which reduced finance cost. Further, Considering the improvements in the working during the year 2015-16 over the previous year 2014-15 and the Company having neither the intention nor the necessity of liquidation or of curtailing materially the scale of the operations, the accounts have been prepared on going concern basis.

9. The Company is incurring losses and hence debenture redemption reserve is not created.

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

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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.

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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.

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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.

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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.

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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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Mar 31, 2010

1) Employee Benefits Contributions to defined contribution schemes such as Provident Fund etc. are charged to the Profit and Loss account as incurred. The Company also provides for retirement/post-retirement benefits in the form of gratuity and leave encashment. Such defined benefits are charged to the Profit and Loss account based on valuations, as at the balance sheet date, conducted by independent actuaries. 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. Claims against the Company not acknowledged as debts Rs. 1,523.47 Lacs (as on 31.03.2009 Rs. 1,541.52 Lacs).

3. Estimated amount of contracts remaining to be executed on Capital Account (Net of Advance) NIL ( as on 31.03.2009 NIL ).

4. Unexpired Letter of Credits established in respect of Plant & Machinery, Raw Materials and Stores & Spares Rs. 3,697.62Lacs (as on 31.03.2009 Rs.4,457.02 Lacs)

5. Bank guarantees issued by banks Rs. 1,158.04 (as on 31.03.2009 Rs. 207.19 Lacs).

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

7. Balances with Excise & Sales Tax Authorities are subject to confirmation.

8. Interest free Loan under Sales Tax deferral scheme from Government of Gujarat is repayable in six equal annual installments starting from 31.05.2010. However the company has approached Govt. of Gujarat for deferment in the repayment schedule.

9. There are no amounts outstanding to Micro, Small & Medium Enterprises for more than 45 days as on the date of Balance Sheet.

No interest is outstanding to any Small Scale or Ancillary Unit as on 31st March, 2010, under the provisions of Interest on Delayed Payments to Small Scale and Ancillary Industrial Undertaking Act, 1993.

10. Exchange difference (net) Credit of Rs. 604.66Lacs (previous year (net) Debit Rs.708.42Lacs) has been included in respective heads of accounts in Profit and Loss account.

11. In view of the Tax Remission Scheme availed by the company VAT/CST on sales upto 26.3.2010 (i.e. upto the validity of the Scheme) has been credited to Sales.

12. The Companys 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 Mr. V.D.Bajaj – Executive Director

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

Note: In respect of above parties, there is no provision for doubtful debts as on 31st March, 2010 and no amount has been written off or written back during the year in respect of debts due from/to them.

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