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Notes to Accounts of Shreyans Industries Ltd.

Mar 31, 2014

1 : Corporate Information

Shreyans Industries Limited (the Company) is a public company incorporated under the provisions of the Companies Act, 1956 on 11th June, 1979. The name of the company at its incorporation was Shreyans Paper Mills Ltd. & subsequently changed to Shreyans Industries Limited on 20th October 1992. The company is engaged in manufacturing of Writing & Printing Paper.

2 Contingent liabilities and provisions ( to the extent not provided for )

Contingent Liabilities (RS In lac)

As at As at March 31, 2014 March 31, 2013

Claims against Company not acknowledged as debt. 1052.25 1052.25

Bank Guarantees and Letters of credit outstanding 2166.20 1093.94

II Commitments

Estimated amount of contracts remaining to be executed on capital account and not provided for ( net of advances ) Rs. 806.72 lacs (Previous yearRs. 147.84 lacs)

3 a) The company has contested the additional demand in respect of excise duty amounting to Rs. 1107.96 lacs (Previous year Rs. 1119.12 lacs). As against this, a sum of Rs. 92.51 lacs (Previous year Rs. 93.76 lacs) is deposited under protest and has been included under Note No. 15 ''Long Term Loans and Advances''. The company has filed an appeal/petition with the appellate authorities and is advised that the demands are not in accordance with the law. Pending decision thereof, no provision has been made in books of account.

b) The company has contested the additional demand in respect of Income Tax amounting to f 6.53 lacs (Previous year Rs. 6.53 lacs). Pending appeal with appellate authorities, no provision has been made in the books of account as the company is hopeful to get the desired relief in appeal. As against this a sum of f 2.00 lacs (Previous year f 2.00 lacs) is deposited under protest

4 The company is a single segment company engaged in manufacture of Writing and Printing Paper. Accordingly the disclosure requirement as contained in the Accounting Standard AS - (17) on "Segment Reporting” prescribed by the Companies (Accounting Standards) Rules 2006 are not applicable.

5 The amount ofRs. 1766.89 lacs (Previous yearRs. 1624.06 lacs) being the excise duty deducted from the sales is relatable to the sales made during the year. Difference of increase / (decrease) of excise duty on inventory amounting to Rs. (1.52) lacs (Previous year Rs. (0.07) lacs) recognised in statement of profit and loss and shown under Miscellaneous expenses in Note No. 29 other expenses is relatable to difference between closing inventory and opening inventory.

6 In accordance with the Accounting Standard 28 on "Impairment of Assets” the company has assessed on the balance sheet date whether there are any indications (as listed in paragraph 8 to 10 of the Standard ) with regard to the impairment of any of the assets. Based on such assessment, it has been ascertained that no potential loss is present and therefore formal estimate of recoverable amount has not been made. Accordingly no impairment loss has been provided in the books of account.

7 The details of amounts outstanding to Micro, Small and Medium Enterprises under the Micro, Small and Medium Enterprises Development Act, 2006 (MSMED Act), based on the available information with the Company are as under :

8 Intangible assets comprises of software have been amortized @ 20% on straight line basis as the useful life thereof has been estimated to be not more than five years.

9 The company has leased facilities under non cancellable operating lease arrangements with a lease term of three years which are subject to renewal at mutual consent thereafter. The lease rent expenses recognised during the year amountsRs. 13.82 lac (previous year Rs.6.77 lac.)

The future minimum lease payment in respect of non cancellable operating lease as at 31st March, 2014 for each of the following periods,

(f) The estimates of future salary increases considered in actuarial valuation, takes into account the inflation, seniority, promotion and other relevant factors, such as supply and demand in employment market.

(g) The financial assumptions considered for the calculations are as under:-

Discount Rate: The discount rate has been chosen by reference to market yield on government bonds as on date of valuation.

Expected Rate of Return: In case of gratuity, the actual return has been taken.

Salary Increase: On the basis of past data provided by the company

(i) The plan assets are maintained with Life Insurance Corporation of India (LIC). The detail of investments maintained by LIC have not been furnished to the Company. The same have therefore not been disclosed.

10 The related party disclosure as per Accounting Standard - 18 prescribed by the Companies(Accounting Standards) Rules 2006.

a) KEY MANAGEMENT PERSONNEL AND RELATIVES OF KEY MANAGEMENT PERSONNEL

Key Management Personnel : Sh Rajneesh Oswal, Sh. Vishal Oswal, Sh Anil Kumar, Sh Kunal Oswal

Relatives of Key Management Personnel

Mrs. N.K. Oswal, Mrs. Preeti Oswal, Mrs. Shika Oswal Mrs. Neera, Ms Namita, Ms Swati

b) ASSOCIATE

Adinath Textiles Limited

c) ENTERPRISES OVER WHICH KEY MANAGEMENT PERSONNEL AND RELATIVE OF SUCH PERSONNEL ARE ABLE TO EXERCISE SIGNIFICANT INFLUENCE OR CONTROL

Achin Investment & Mercantile Company Shreyans Financial and Capital Services Limited Punctual Dealers (P) Ltd.

Jagvallabh Parasnath Capital Investments Pvt Ltd Virat Investment & Mercantile Company Oasis Share Trading Pvt Ltd

Ojasvi Investment & Mercantile Company Lime Lite Consultants Private Limited Levina Investment & Mercantile Company Adeep Investment Company. Noble Share Trading Pvt Ltd Sulzer Investment Pvt Ltd

d) The following transaction were carried out with the related parties in the ordinary course of business.

11 The information required by the paragraph 5 of general instructions for preparation of the Statement of Profit and Loss as per Revised Schedule VI of the Companies Act, 1956

12 Previous year''s figures have been regrouped/restated wherever necessary to confirm to its classification of the current year.


Mar 31, 2013

1 : Contingent liabilities and provisions ( to the extent not provided for )

Contingent Liabilities

As at As at PARTICULARS 31 March 2013 31 March 2012 Rs.In lacs Rs.In lacs

(i) Claims against Company not acknowledged as debt. 1052.25 1052.25

(ii) Bank Guarantees and Letters of credit outstanding 1093.94 809.28

II Commitments

i) Estimated amount of contracts remaining to be executed on capital account and not provided for ( net of advances ) Rs. 147.84 lacs (Previous year Rs. 33.37 lacs)

ii) The company has executed bonds for an a ggregate amount of Rs. Nil (Previous Year Rs. 15.00 lacs) in favour of Pre sident of India under section 56(2) and 67 of the Cus t o m s Act, 1962 and Central Excise and Salt Act, 1944, for fulfillment of the obligation under the said Acts.

2 : a) The company has contested the additional demand in respect of excise duty amounting to Rs. 1119.12 lacs (Previous years Rs. 1119.12 lacs). As against this, a sum of Rs. 93.76 lacs (Previous year Rs. 61.90 lacs) is deposited under protest and has been included under the head Rs.Long Term Loans and Advances''. The company has filed an appeal/petition with the appellate authorities and is advised that the demands are not in accordance with the law. Pending decision thereof, no provision has been made in books of account.

b)The company has contested the additional demand in respect of Income Tax amounting to Rs. 6.53 lacs (Previous year 46.90 lacs). Pending appeal with appellate authorities, no provision has been made in the books of account as the company is hopeful to get the desired relief in appeal. As against this a sum of Rs. 2.00 lacs (Previous year Rs. 23.50 lacs) is deposited under protest

3 : The company is a single segment company engaged in manufacture of Writing and Printing Paper. Accordingly the disclosure requirement as contained in the Accounting Standard AS – (17) on "Segment Reporting" prescribed by the Companies (Accounting Standards) Rules 2006 are not applicable.

4 : The amount of Rs. 1624.06 lacs (Previous year Rs. 1179.33 lacs) being the excise duty deducted from the sales is relatable to the sales made during the year. Difference of increase / (decrease) of excise duty on inventory amounting to Rs. (0.07) lacs ( Previous year Rs. (0.38) lacs) recognised in statement of profit and loss and shown under Miscellaneous expenses in note no. 28 other expenses is relatable to difference between closing inventory and opening inventory.

5 : In accordance with the Accounting Standard 28 on "Impairment of Assets" the company has assessed on the balance sheet date whether there are any indications (as listed in paragraph 8 to 10 of the Standard ) with regard to the impairment of any of the assets. Based on such assessment, it has been ascertained that no potential loss is present and therefore formal estimate of recoverable amount has not been made. Accordingly no impairment loss has been provided in the books of account.

6 : Intangible assets comprises of software have been amortized @ 20% on straight line basis as the useful life thereof has been estimated to be not more than five years.

7 : a) The Company uses forward contracts to hedge its risk associated with fluctuation in foreign currency relating to foreign currency assets and liabilities. The use of the aforsaid financial instruments is governed by the Company''s overall strategy. The Company does not use forward contracts for speculative purposes. The details of the outstanding forward contracts as at 31 March 2013 are as under :

8 : The company has leased facilities under non cancellable operating lease arrangements with a lease term of three years which are subject to renewal at mutual consent thereafter. The lease rent expenses recognised during the year amounts Rs. 6.77 lac (previous year Rs.6.55 lac.)

The future minimum lease payment in respect of non cancellable operating lease as at 31st March, 2013 for each of the following periods,

9 : Employee Benefits

The summarized position of post-employment benefits and long term employee benefits recognized in the statement of profit and loss and Balance Sheet in accordance with AS[15] is as under:-

10 : The related party disclosure as per Accounting Standard – 18 prescribed by the Companies(Accounting Standards) Rules 2006.

a) KEY MANAGEMENT PERSONNEL AND RELATIVES OF KEY MANAGEMENT PERSONNEL

Key Management Personnel : Sh Rajneesh Oswal, Sh. Vishal Oswal, Sh Anil Kumar, Sh Kunal Oswal

Relatives of Key Management

Personnel: Mrs. N.K. Oswal, Mrs. Preeti Oswal, Mrs. Shika Oswal

Mrs. Neera, Ms Namita, Ms Swati

b) ASSOCIATE Adinath Textiles Limited

c) ENTERPRISES OVER WHICH KEY MANAGEMENT PERSONNEL AND RELATIVE OF SUCH PERSONNEL ARE ABLE TO EXCERCISE SIGNIFICANT INFLUENCE OR CONTROL

Achin Investment & Mercantile Company Ojasvi Investment & Mercantile Company Shreyans Financial and Capital Services Limited Lime Lite Consultants Private Limited Punctual Dealers (P) Ltd.

Levina Investment & Mercantile Company

Jagvallabh Parasnath Capital Investments Private Limited Adeep Investment Company. Virat Investment & Mercantile Company No transaction carried out during the year with the enterprises stated above.

11: The figures in brackets represent deductions.

12 : The information required by the paragraph 5 of general instructions for preparation of the Statement of Profit and Loss as per Revised Schedule VI of the Companies Act, 1956


Mar 31, 2012

A Terms/ rights attached to equity shares

The company presently has one class of equity shares having par value of Rs.10/- each. Each holder of equity shares is entitled to one vote per share. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting and then equity shareholder is entitled to the dividend.

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

The rate of dividend on preferential shares is decided by the Board of directors as and when issued. Preferential shares as and when issued shall have the cumulative right to receive dividend as and when declared and shall have preferntial right of repayment of amount of capital.

The company has not declared dividend during the year ended March 31, 2012.

b) Detail of Shares held by holding company, the ultimate holding company their subsidiaries and associates

There is no holding /ultimate holding company of the company and therefore no subsidiary/associate of holding / ultimate holding Company.

a) Details of security for term loans

i) Term loans from banks and financial institutions are secured by a joint equitable mortgage created or to be created on immovable properties both present and future, situated at Ahmedgarh and Banah in the state of Punjab and hypothecation of whole of movable plant and machinery, machinery spares, tools and accessories and other movable, both present and future ( save and except book debts ) subject to the charge created or to be created by the company in favour of its bankers for its working capital loans. Term loans from banks and financial institutions are also personally guaranteed by promoter directors of the company.

ii) Term loans from others are secured by way of hypothecation of vehicles purchased out of such loans

b) Terms of repayment of term loans from banks

i) Term loan from iDbI Bank Limited amounting to Rs.89.04 lacs (including current maturities of long term debt) carries interest @ 12.25%. The loan is repayable in 3 quarterly instalments of Rs. 29.68 lacs each.

ii) Term loan from ICICI Bank Limited amounting to Rs.218.10 lacs (including current maturities of long term debt) carries interest @ 12.25%. The loan is repayable in 3 quarterly instalments of Rs. 72.70 lacs each.

iii) Term loan from State Bank of Patiala amounting to Rs.81.70 lacs (including current maturities of long term debt) carries interest @ 14.00%. The loan is repayable in 2 quarterly instalments of Rs. 50.00 lac and Rs. 31.70 lacs.

iv) Term loan from State Bank of Patiala amounting to Rs.600.00 lacs (including current maturities of long term debt) carries interest @ 13.25%. The loan is repayable in 8 quarterly instalments of Rs. 75.00 lacs each.

v) Term loan from State Bank of Patiala amounting to Rs.1400.00 lacs (including current maturities of long term debt) carries interest @ 14.00%. The loan is repayable in 20 quarterly instalments of Rs. 70.00 lacs each.

vi) Vehicle loan from ICICI Bank Limited amounting to Rs.2.61 lacs (including current maturities of long term debt) carries interest @ 9.26%. The loan is repayable in 20 monthly instalments (including interest) of Rs. 14150/- each .

vii) Vehicle loan from ICICI Bank Limited amounting to Rs.7.56 lacs (including current maturities of long term debt) carries interest @ 11.19%. The loan is repayable in 59 monthly instalments (including interest) of Rs. 16725/- each.

viii) Vehicle loan from ICICI Bank Limited amounting to Rs.15.48 lacs (including current maturities of long term debt) carries interest @ 10.57%. The loan is repayable in 35 monthly instalments (including interest) of Rs. 51600/- each .

ix) Vehicle loan from HDFC Bank Limited amounting to Rs.1.95 lacs (including current maturities of long term debt) carries interest @ 11.00%. The loan is repayable in 20 monthly instalments (including interest) of Rs. 10705/- each .

x) Vehicle loan from HDFC Bank Limited amounting to Rs. 2.76 lacs (including current maturities of long term debt) carries interest @ 11.10%. The loan is repayable in 24 monthly instalments (including interest) of Rs. 12880/- each .

xi) Vehicle loan from HDFC Bank Limited amounting to Rs.2.99 lacs (including current maturities of long term debt) carries interest @ 11.25%. The loan is repayable in 26 monthly instalments (including interest) of Rs. 13020/- each .

xii) Vehicle loan from HDFC Bank Limited amounting to Rs.9.05 lacs (including current maturities of long term debt) carries interest @ 10.73%. The loan is repayable in 29 monthly instalments (including interest) of Rs. 35550/- each .

xiii) Vehicle loan from HDFC Bank Limited amounting to Rs.1.33 lacs (including current maturities of long term debt) carries interest @ 9.25%. The loan is repayable in 11 monthly instalments (including interest) of Rs. 12650/- each .

c) Terms of repayment of term loans from financial institutions

i) Term loan from LIC of India amounting to Rs.13.80 lacs (including current maturities of long term debt) carries interest @ 12.25%. The loan is repayable in 3 quarterly instalments of Rs. 4.60 lacs each.

i i) Term loan from LIC of India amounting to Rs.4.14 lacs (including current maturities of long term debt) carries interest @ 0%. The loan is repayable in 3 quarterly instalments of Rs. 1.38 lacs each.

d) Terms of repayment of term loans from others

i) Vehicle loan from Kotak Mohindra Prime Limited amounting to Rs.1.84 lacs (including current maturities of long term debt) carries interest @ 9.70%. The loan is repayable in 8 monthly instalments (including interest) of Rs. 23827/- each .

ii) Vehicle loan from TATA Capital Serivce Limited amounting to Rs. 9.94 lacs (including current maturities of long term debt) carries interest @ 9.95%. The loan is repayable in 22 monthly instalments (including interest) of Rs. 49950/- each

Details of security of loans repayable on demand (secured)

*Secured loans repayable on demand from banks are secured by hypothecation of stocks of raw materials,finished goods, bills receivables, book debts and all other movable assets of the company and further secured by way of second charge on the immovable assets situated at village Banah and at Ahmedgarh and also personally guaranteed by the two promotor directors of the company.

** Unsecured loan repayable on demand are secured by the personal security of a promoter director of the company and carries interest @ 14.75%

Terms of repayment of short term borrowings

i) Working capital borrowings from banks are repayable on demand and carries interest @ 3% over base rate

ii) Unsecured loans from related parties repayable within one year carries interest @ 0 to 11%.

iii) Unsecured loans from public repayable within one year carries interest @ 0 to 11%

Notes

1 'Includes Rs 35.09 lacs being the cost of land exchanged with the forest department land for providing an open drain for carrying effulent

2 ** Represents proportionate premium for acquisition of lease hold land being amortised over the period of lease.

3 Subsidy amounting to Rs. Nil (previous year Rs. 23.30 lacs) related to fixed assets is deducted from the gross value of the asset concerned

4. Intangible assets are not internally generated.

Note 1 : Contingent liabilities and provisions (to the extent not provided for)

I Contingent Liabilities

Particulars As at As at 31 March 2012 31 March 2011

(i) Monies for which company is liable for payment 1052.25 34.83

(ii) Bank Guarantees and Letters of credit outstanding 809.28 837.43

(iii) Ohers - -

II Commitments

I)Estimated amount of contracts remaini n g to be executed on capital account and not provided for ( net of advances ) Rs. 33.37 lacs (Previous year Rs. 971.90 lacs)

II)The company has executed bonds for an aggregate amount of Rs. 15.00 lacs (Previous Year Rs. 14.00 lacs) in favour of President of India under section 56(2) and 67 of the Customs Act, 1962 and Central Excise and Salt Act, 1944, for fulfillment of the obligation under the said Acts

Note 2 : a) The company has contested the additional demand in respect of excise duty amounting to Rs. 1119.12 lacs (Previous years Rs. 998.61 lacs). As against this, a sum of Rs. 61.90 lacs (Previous year Rs. 61.90 lacs) is deposited under protest and has been included under the head 'Advances recoverable in cash or in kind'. The company has filed an appeal/petition with the appellate authorities and is advised that the demands are not in accordance with the law. Pending decision thereof, no provision has been made in books of account.

*b)The company has contested the additional demand in respect of Income Tax amounting to Rs. 46.90 lacs (Previous year 46.90 lacs). Pending appeal with appellate authorities, no provision has been made in the books of account as the company is hopeful to get the desired relief in appeal. As against this a sum of Rs. 23.50 lacs (Previous year Rs. 11.50 lacs) is deposited under protest.

Note 3 : The company is a single segment company engaged in manufacture of Writing and Printing Paper. Accordingly the disclosure requirement as contained in the Accounting Standard AS (17) on "Segment Reporting" prescribed by the Companies (Accounting Standards) Rules 2006 are not applicable.

Note 4: The amount of Rs. 1179.33 lacs (Previous year Rs. 837.58 lacs) being the excise duty deducted from the sales is relatable to the sales made during the year. Difference of increase / (decrease) of excise duty on inventory amounting to Rs. (0.38) lacs ( Previous year Rs. 7.00 lacs) recognised in statement of profit and loss and shown under Miscellaneous expenses in note no. 27 other expenses is relatable to difference between closing inventory and opening inventory Note 32 : Earning Per Share.

Note 5: In accordance with the Accounting Standard 28 "on Impairment of Assets" the company has assessed on the balance sheet date whether there are any indications (as listed in paragraph 8 to 10 of the Standard ) with regard to the impairment of any of the assets. Based on such assessment, it has been ascertained that no potential loss is present and therefore formal estimate of recoverable amount has not been made. Accordingly no impairment loss has been provided in the books of account.

Note 6 : Intangible assets comprises of software have been amortized @ 20% on straight line basis as the useful life thereof has been estimated to be not more than five years.

Note 7 : The company has leased facilities under non cancellable operating lease arrangements with a lease term of three years which are subject to renewal at mutual consent thereafter. The lease rent expenses recognised during the year amounts Rs. 6.55 lac (previous year 6.55 lac.)

The future minimum lease payment in respect of non cancellable operating lease as at 31st March, 2012 for each of the following periods,

Note 8 : Rs. 45.29 lacs (previous year Rs. Nil lacs) being amount of borrowing cost capitalized during the year.

Note 9 : Employee Benefits

The summarized position of post-employment benefits and long term employee benefits recognized in the profit and loss account and Balance Sheet in accordance with AS[15] is as under:-

(i) No allowance for doubtful debts is required to be made for the year in respect of debt due from related parties.

(ii) The related party relationship is as identified by the Company and relied upon by the auditors

Note 10 : The financial statements for the year ended 31st March , 2012 has been prepared as per Revised Schedule VI to the Companies Act, 1956. Accordingly the previous year figures have been reclassified to confirm to this year's classification.

Note 11 : The figures in brackets represent deductions.

Note 12 : The information required by the paragraph 5 of general instructions for preparation of the Statement of Profit and Loss as per Revised Schedule VI of the Companies Act, 1956


Mar 31, 2011

1. The company has contested the additional demand in respect of excise duty amounting to Rs. 998.61 lacs (Previous years Rs. 1049.05 lacs).As against this, a sum of Rs. 61.90 lacs (Previous year Rs. 121.93 lacs) is deposited under protest and has been included under the head `Advances recoverable in cash or in kind'. The company has filed an appeal/petition with the appellate authorities and is advised that the demands are not in accordance with the law. Pending decision thereof, no provision has been made in books of account.

2. Fixed deposits of Rs. 162.40 Lacs (Previous Year Rs. 97.95 lacs) are pledged with various departments as securities against the performance of contracts, letter of credits and bank guarantees issued by Bank.

3. The company is a single segment company engaged in manufacture of Writing and Printing Paper. Accordingly the disclosure requirement as contained in the Accounting Standard AS (17) on "Segment Reporting" prescribed by the Companies (Accounting Standards) Rules 2006 are not applicable.

4. The company has contested the additional demand in respect of Income Tax amounting to Rs. 46.90 lacs (Previous year Nil). Pending appeal with appellate authorities, no provision has been made in the books of account as the company is hopeful to get the desired relief in appeal.

5. The company has executed bonds for an aggregate amount of Rs. 14.00 lac (Previous Year Rs. Nil lac) in favour of President of India under section 56(2) and 67 of the Customs Act, 1962 and Central Excise and Salt Act, 1944, for fulfillment of the obligation under the said Acts.

6. The amount of Rs. 837.58 lacs (Previous year Rs. 682.55 lacs) being the excise duty deducted from the turnover is relatable to the turnover made during the year. Difference of excise duty amounting to Rs. 7.00 lacs ( Previous year Rs. 5.23 lacs) recognised in profit and loss account and shown under the schedule of manufacturing expenses is relatable to difference between closing stock and opening stock.

7. In accordance with the Accounting Standard 28 "on Impairment of Assets" the company has assessed on the balance sheet date whether there are any indications (as listed in paragraph 8 to 10 of the Standard) with regard to the impairment of any of the assets. Based on such assessment, it has been ascertained that no potential loss is present and therefore formal estimate of recoverable amount has not been made. Accordingly no impairment loss has been provided in the books of account.

8. (a)The Company has identified Micro, Small and Medium Enterprises on the basis of information made available. There are no dues to Micro, Small and Medium Enterprises, that are reportable under the Micro, Small and Medium Enterprises Development Act 2006.

9. Intangible assets comprises of software have been amortized @20% on straight line basis as the useful life thereof has been estimated to be not more than five years.

10. The company has leased facilities under non cancellable operating lease arrangements with a lease term of three years which are subject to renewal at mutual consent thereafter. The lease rent expenses recognised during the year amounts Rs. 6.55 lac (previous year 4.10 lac.)

11. Employees Benefits

(f) The estimates of future salary increases, considered in actuarial valuation, take account of inflation, seniority, promotion and other relevant factors, such as supply and demand in employment market.

(g)The financial assumptions considered for the calculations are as under:-

Discount Rate: The discount rate has been chosen by reference to market yield on government bonds as on date of valuation.

Expected Rate of Return: In case of gratuity, the actual return has been taken.

Salary Increase: On the basis of past data provided by the company.

12. The related party disclosureas per Accounting Standard 18 prescribed by the Companies (Accounting Standards) Rules 2006.

a) KEY MANAGEMENT PERSONNEL AND RELATIVES OF KEY MANAGEMENT PERSONNEL

Key Management Personnel : Sh Rajneesh Oswal, Sh. Vishal Oswal, Sh Anil Kumar, Sh Kunal Oswal

Relatives of Key Management Personnel : Mrs. N.K. Oswal, Mrs. Preeti Oswal, Mrs. Shika Oswal Mrs. Neera, Ms Namita, Ms Swati

b) ASSOCIATE Adinath Textiles Limited

c) ENTERPRISES OVER WHICH KEY MANAGEMENT PERSONNEL AND RELATIVE OF SUCH PERSONNEL ARE ABLE TO EXCERCISE SIGNIFICANT INFLUENCE OR CONTROL

Achin Investment & Mercantile Company

Ojasvi Investment & Mercantile Company

Shreyans Financial and Capital Services Limited

Lime Lite Consultants Private Limited

Punctual Dealers (P) Ltd.

Levina Investment & Mercantile Company

Jagvallabh Parasnath Capital Investments Private Limited

Adeep Investment Company.

Virat Investment & Mercantile Company

No transaction carried out during the year with the enterprises stated above.

d) The following transaction were carried out with the related parties in the ordinary course of business.

(i) No provision for doubtful debts is required to be made for the year in respect of debt due from related parties.

(ii) The related party relationship is as identified by the Company and relied upon by the auditors

13. Previous year's figures have been recast/regrouped wherever necessary, to make these comparable with current year

14. The figures have been rounded off to the nearest lac rupees

15. The figures in brackets represent deductions.


Mar 31, 2010

1. The company has contested the additional demand in respect of sales tax and excise duty amounting to Rs. 1049.05 lacs (Previous years Rs. 1092.89 lacs). As against this, a sum of Rs. 121.93 lacs (Previous year Rs. 162.68 lacs) is deposited under protest and has been included under the head Advances recoverable in cash or in kind The company has filed an appeal/petition with the appellate authorities and is advised that the demands are not in accordance with the law. Pending decision thereof, no provision has been made in books of account.

2. Fixed deposits of Rs. 97.95 Lacs (Previous Year Rs. 79.84 lacs) are pledged with various departments as securities against the performance of contracts, letter of credits and bank guarantees issued by Bank.

3. The company is a single segment company engaged in manufacture of Writing and Printing Paper. Accordingly the disclosure requirement as contained in the Accounting Standard AS (17) on "Segment Reporting" prescribed by the Companies (Accounting Standards) Rules 2006 are not applicable.

4. The amount of Rs. 682.55 lacs (Previous year Rs. 1111.08 lacs) being the excise duty deducted fromthe turnover is relatable to the turnover made during the year. Difference of excise duty amounting to Rs. 5.23 lacs ( Previous year Rs. 0 65 lacs) recognised in profit and loss account and shown under the schedule of manufacturing expenses is relatable to difference between closing stock and opening stock.

5. In accordance with the Accounting Standard 28 "on Impairment of Assets" the company has assessed on the balance sheet date whether the re are any indications (as listed in paragraph 8 to 10 of the Standard) with regard to the impairment of any of the assets. Based on such assessment, it has been ascertained that no potential loss is present and therefore formal estimate of recoverable a mount ha snot been made. Accordingly no impairment loss has been provided in the books of account.

6. The detail of deferred tax liability as on 31st March, 2010.

7. The tax paid under section 115 JB (MAT) of Income Tax Act, 1961 has been treated as an asset in accordance with the provisions of the guidance note on accounting for credit available in respect of Minimum Alternate Tax under the Income Tax Act, 1961.

8. The Company has identified Micro, Small and Medium Enterprises on the basis of information made available There are no dues to Micro, Small and Medium Enterprises, that are reportable under the Micro. Small and Medium Enterprises Development Act 2006.

9. The estimated useful life of the intangible assets [Software] had been estimated to be six years. It has now been decided to amortize such intangible assets over a period of five years so as to conform with the requirements of Accounting Standards [AS] 26 "Intangible Assets", Accordingly, the amount of amortization of intangible assets for the year is higher by Rs 2.44 lac.

10. The company has allotted 27,50,000/- equity shares of Rs. 10/- each at a premium of Rs. 22.50 per share on conversion of equivalent number of warrants issued on preferential basis. The company had utilized the proceeds received from this issue for the purpose these were raised.

11. Exchange difference arising on realization of export bills amounting to Rs. 4.58 lac (Previous Year Rs. 9.32 lac)

12. Detail of foreign currency exposure that has not been hedged by a derivative instrument or otherwise is given below.

Currentyear Previous year

Against Debtors (US Dollars) 1,29,603.54 Nil

Against Loan (US Dollars) 4,50,000.00 7,50,000.00

13. The company has leased facilities under ndn cancellable operating lease arrangements with a lease term of three years which are subject to renewal at mutual consent thereafter. The lease rent expenses recognised during the year amounts Rs. 4,10 lac. The future minimum lease payment in respect of non cancellable operating lease as at 31 March, 2010 for each of the following periods,

(Rs. In lac) i) Not Laterthan one year 6.55

ii) Laterthanoneyearbutnotlaterthanthreeyear 11.96

iii) Laterthanthreeyear Nil

14. Employee Benefits

The summarized position of post-employment benefits and long term employee benefits recognized in the profit and loss account and Balance Sheet in accordance with AS[15] is as under:-

(f)The estimates of future salary increases, considered in actuarial valuation, take account of inflation, seniority, promotion and other relevant factors, such as supply and demand in employment market

(g) The financial assumptions considered for the calculations are as under:-

Discount Rate: The discount rate has been chosen by reference to market yield on government bonds as on date of valuation Expected Rate of Return: In case of gratuity, the actual return has been taken Salary Increase: On the basis of past data provided by the company.

(h) Short term employees benefits:

Current year Previous year (Rs in lacs (Rs in lacs)

Short term leave encashment liability as on 31.03.2010 69.76 55.84

Contribution to Provident Fund 126.19 112 15

15. The related party disclosure as per Accounting Standard-18 prescribed by the Companies (Accounting Standards) Rules 2006

a) KEYMANAGEMENT PERSONNEL AND RELATIVES OF KEY MANAGEMENT PERSONNEL

Key Management Personnel : Sh Rajneesh Oswal, Sh. Vishal Oswal, Sh Anil Kumar. Sh Kunal Oswal

Relatives of Key Management

Personnel: Mrs. N.K. Oswal, Mrs. Preeti Oswal, Mrs. Shika Oswal

Mrs. Neera, Ms Namita, Ms Swati

b) ASSOCIATE Adinath Textiles Limited

c) ENTERPRISES OVER WHICH KEY MANAGEMENT PERSONNEL AND RELATIVE OF SUCH PERSONNEL ARE ABLE

EXCERCISE SIGNIFICANT INFLUENCE OR CONTROL

Achin Investment & Mercantile Company

jasvi Investment S Mercantile Company

Shreyaris Financial and Capital Services Limited

Lime Lite Consultants Private Limited

Punctual Dealers (P) Ltd.

Levina Investment & Mercantile Company

Jagvallabh Parasnath Capital Investments Private Limited

Adeep Investment Company.

Virat Investment & Mercantile Company

No transaction carried out during the year with the enterprises stated above.

(i) No provision for doubtful debts is required to be made for the year in respect of debt due from related parties. (ii) The related party relationship is as identified by the Company and relied upon by the auditors

17. Previous years figures have been wherever necessary, to make these comparable with current year

18. The figures have been rounded off to the nearest lac rupees

23. The figures in brackets represent deductions.

 
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