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Notes to Accounts of Star Paper Mills Ltd.

Mar 31, 2015

1.1 In view of the inadequacy of profit, excess remuneration, being the remuneration already approved by the shareholders, of Rs. 21.57 Lacs payable to managerial personnel for an earlier year is subject to approval of Central Government.Necessary steps have been taken to obtain the approval in this regard.

2.1 During the year , the company has incurred Rs. 87.15 Lakhs (previous year Rs. 81.23 Lakhs ) on account of research and development expenses which has been charged to statement of Profit and loss.

3.1 The Company's pending litigations comprise of claim against the Company and proceedings pending with tax/ statutory/Government Authorities. The Company has reviewed all its pending litigation and proceedings and has made adequate provisions, and disclosed the contingent liabilities, wherever applicable, in its financial statements. The Company does not expect the outcome of these proceedings to have a material impact on its financial position. Future cash outflows in respect of above are determinable only on receipt of judgment/ decisions pending with various forums/ authorities.

3.2 Commitments

Estimated amount of contracts remaining to be executed on capital account (net of advances) Rs. 91.72 Lacs (Previous year Rs. 17.24 Lacs).

4. Foreign currency exposure outstanding as on 31.3.2015 which has not been hedged Rs. 00.00 Lacs (Previous year Rs. 61.05Lacs)

5. Related Party disclosures as identified by the management in accordance with the Accounting Standard 18:

(a) Key Management Personnel and their relatives

Mr. G. P. Goenka (Chairman)

Mr. S. V. Goenka (Director and son of Chairman)

Mr. M. Mishra (Managing Director)

Mrs. M. Mishra (Wife of Managing Director)

(b) Associates/Group Companies: ISG Traders Limited

6. The company is engaged primarily in the business of "Paper" and all other activities are incidental thereto. Further, the company sells primarily in the domestic market where its operations are governed by the same set of risks and returns and the overseas sales are insignificant. Accordingly the separate primary and secondary segment reporting disclosure as envisaged in Accounting Standards (AS-17) on Segment Reporting is not applicable to the company.

7. Figures have been given in Rupees Lacs and have been rounded off to the nearest thousand.

8. Previous year figures have been regrouped/ reclassified to confirm with current year presentation, wherever considered necessary.


Mar 31, 2014

1. SHARE CAPITAL

a. The Company has two class of equity share having a par value of Rs. 10/- each. Each holder of both class of equity shares is entitled to one vote per equity share. In the event of liquidation, the equity shareholder of both the class are eligible to receive the remaining asset of the company after distribution of all preferential amounts, in the proportion of their shareholdings.

b. There is no movement in the number of share outstanding at the beginning and at the end of the year.

2. SHORT TERM BORROWING

a. Working Capital facility from Banks are secured by way of Hypothecation of Stocks of finished goods, raw materials, chemicals, stores, other materials including those in transit, book debts both present and future and the charge on fixed assets of the company, ranking pari-passu in favour of the banks.

3. TREAD PAYBLES

a.There is no Micro, Small and Medium Enterprises to whom the company owes any amount which are outstanding for more than 45 days as at 31st March 2014. This information as required to be disclosed under Micro, Small and Medium enterprises Development Act 2006 has been determined to the extent such parties have been identified on the basis of information available with the company.

4. OTHER CURRENT LIABILITIES

* The figure does not include any amounts, due and outstanding, to be credited to Investor Education and Protection Fund.

5. FIXED ASSEST

a. Gross block and Net block of Buildings include flat acquired under joint ownership with other at New Delhi amounting Rs. 55.30 Lacs and Rs. 33.11 Lacs.(Previous period Rs. 55.30 Lacs and Rs. 34.85 Lacs) respectively.

6. INVESTMENT

a. Market quotation in respect of Non-traded shares are not available since long, therefore the market value of these investments has not been stated.

b. Keeping in view of the provisions of Accounting Standard on Investments (AS-13) , the company ''s investment in ISG Traders Ltd has been evaluated based on the valuation carried out by an independent firm of Chartered Accountants and diminution in value thereof has been recognised in this year and shown as exceptional items in the statement of profit and loss.

7. LONG TERM LOANS AND ADVANCES

a.In view of the management , the company is expected to pay normal tax within the credit entitlement period and thereby no adjustment in this respect has been considered necessary.

8. CASH AND BANK BALANCES

a. Fixed Deposit lodged with banks against Bank Guarantees issued.

b. Against employee security deposits.

9. EMPLOYEESBENEETTS EXPENSES

a. In view of the inadequacy of profit, excess remuneration, being the remuneration already approved by the shareholders, of Rs. 64.51 Lakhs payable to managerial personnel for earlier years is subject to approval of Central Government. The company is in the process of seeking necessary approval.

10. AUDITORS REMUNERATION (Included in Miscellaneous Expenses)

a. During the year, the company has incurred Rs 81.23 Lakhs (previous year Rs 85.40Lakhs) on account of research and development expenses which has been charged to Statement of Profit and Loss.

11. CONTINGENT LIABILITIES (Rs. in Lacs) For the Year ended For the Year ended 31st March 2014 31st March 2013

A. In respect of Various demands raised, which in the opinion of the mana- gement are not tenable and are under appeal at various stages.

1. Sales Tax including Trade Tax 641.67 663.56

2. Mandi Fee * 230.00 176.00

3. Excise Duty 35.11 35.11

4. Electric Duty 2.70 2.70

5. Employees State Insurances Corp. 4.90 4.90 (On Good Work Bonus)

6. Sales Tax on Royalty 69.10 69.10

7. Liability for entry tax on Paper and Fuel 163.27 182.69

8 Demand in respect of Railway Plot Rent 201.14 201.14

B. Workers Claims 64.01 64.13

*Company''s Special Leave petition (SLP) against the order of Hon''ble High Court of Allahabad pertaining to goods procured in earlier years has been admitted by Hon''ble Supreme Court. Pending final decision on the matter, the amount demanded excluding interest thereon has been included as above and Rs 92.47 Lakhs paid in this respect has been shown under long term loan and advances.

* Future cash out flow in respect of A and B is dependent upon the outcome ofjudgments/decisions

12. Foreign currency exposure outstanding as on 31.3.2014 which has not been hedged Rs 61.05 Lakhs (Previous year Rs 172.24 Lakhs).

13. Defined benefit scheme

a. Assumptions related to future salary increases, attrition, interest rate for discount and overall expected rate of return on Assets have been considered based on relevant economic factors such as inflation, market growth and other factors applicable to the year over which the obligation is expected to be settled.

14. RELATED PARTY DISCLOSUERS AS IDENTIFIED BY THE MANAGEMENT IN ACCORDANCE WITH THE ACCOUTING STANDARD 18:

(a) Key Management Personnel and their relatives

Mr. G. P. Goenka (Chairman)

Mr. S. V. Goenka (Director and son of Chairman)

Mr. M. Mishra (Managing Director)

Mrs. M. Mishra (Wife of Managing Director)

15. The company is engaged primarily in the business of "Paper" and all other activities are incidental thereto. Further, the company sells primarily in the domestic market where its operations are governed by the same set of risks and returns and the overseas sales are insignificant. Accordingly the separate primary and secondary segment reporting disclosure as envisaged in Accounting Standards (AS-17) on Segment Reporting is not applicable to the company.

16. Figures have been given in Rupees Lakhs and have been rounded off to the nearest thousand.

17. Previous year figures have been regrouped/reclassified to confirm with current year presentation, wherever considered necessary.


Mar 31, 2013

1. CONTINGENT LIABILITIES (Rs. in Lacs)

31 st March 2013 31 st March 2012

A. In respect of Various demands raised.which in the opinion of the management are not tenable and are under appeal at various stages:

1. Sales Tax including Trade Tax 663.56 551.26

2. Market Fee 176.00 176.00

3. Excise Duty 35.11 40.93

4. Electric Duty 2.70 2.70

5. Employees State Insurance Corp. 4.90 4.90 ( On Good Work Bonus)

6. Sales Tax on Royalty 69.10 69.10

7. Liability for entry tax on fuel 182.69 169.83

8. Demand in respect of Railway Plot Rent 201.14 201.14

B. Workers Claims 64.13 70.82

C. Income Tax - 370.99



Note: Future cash outflow in respect of A to C is dependent upon the outcome of judgments/decisions

2. Foreign currency exposure outstanding as on 31.3.2013 which has not been hedged Rs 172.24 Lacs (Previous year Rs 252.92 Lacs)

3. Related Party disclosures as identified by the management in accordance with the Accounting Standard 18:

(a) Key Management Personnel and their relatives

Mr. G. R Goenka (Chairman)

Mr. S. V. Goenka (Director and son of Chairman)

Mr. M. Mishra (Managing Director)

Mrs. M. Mishra (Wife of Managing Director)

(b) Associates/Group Companies:

(i) With whom the Company had transactions

Duncans Industries Limited, NRC Limited, Kavita Marketing Private Limited, ISG Traders Limited, Odyssey Travels Limited

(ii) Others

Andhra Cements Limited (erstwhile associate company), Albert Trading Company Private Limited, Bargate Communications Private Limited, Boydell Media Private Limited, Continuous Forms (Calcutta) Limited, Dail Consultants Limited, Duncans Agra Chemicals Limited, Duncans Tea Limited, North India Fertilisers Ltd., Duncans Tea House Pvt. Limited, Gujarat Carbon and Industries Limited, Infratech Software Services Private Limited, Julex Commercial Company Limited, Leyden Leasing and Financial Services Limited, Marleybone Travels and Resorts Private Limited, Stone Solar Private Limited, Octave Technologies Private Limited, Orchard Holdings Private Limited, Pentonville Software Limited, Santipara Tea Company Limited, Skylight Trading Company Limited, Sprint Trading Company Limited, Silent Valley Investment Company Limited, Subh Shanti Services Limited, Sewand Investments Private Limited, Stone India Limited, Stone Intermodal Private Limited, Unimers India Limited.

The parties listed in (ii) above, though are not required to be disclosed as per the requirement of AS-18, have been included here-in-above in view of the requirement of Clause 32 of the Listing Agreement.

4. Estimated amount of contracts remaining to be executed on capital account (net of advances) Rs. 2.11 Lacs (Previous year Rs. 0.04 Lac).

5. The company is engaged primarily in the business of" Paper" and all other activities are incidental thereto. Further, the company sells primarily in the domestic market where its operations are governed by the same set of risks and returns and the overseas sales are insignificant. Accordingly the separate primary and secondary segment reporting disclosure as envisaged in Accounting Standards (AS-17) on Segment Reporting is not applicable to the company.

6. Figures have been given in Rupees Lacs and have been rounded off to the nearest thousand.

7. Previous year figures have been re-grouped/re-classified to confirm with current year presentation, wherever considered necessary


Mar 31, 2012

A) The company has investments in ISG Traders Ltd. (ISG) and ISG has' in turn' investments which from part of group's controlling interest in several companies. In addition' ISG has other investments in other classes of assets. Considering the fact that the company's investments in ISG is of long term in nature' revenue recognition with respect to diminution' if any' in the value of investments in ISG has not been considered necessary.

a) In view of the inadequacy of profit' excess remuneration of Rs. 64.51 lacs (including Rs. 44.90 lacs for current year) of Whole-time Director and Managing Director is subject to approval of Central Government under clause C of Section II of Part II of Schedule XIII of Companies Act 1956. The remuneration payable to them is the minimum remuneration' approved by the shareholders in the event of absence or inadequacy of profits. Application for Central Government approval has already been made.

Note : Assumptions related to future salary increases' attrition' interest rate for discount and overall expected rate of return on Assets have been considered based on relevant economic factors such as inflation' market growth and other factors applicable to the year over which the obligation is expected to be settled.

b) Salary/Wages Rs. 35.50 Lacs (Previous year Rs. 38.15 Lacs) Provident Fund and Employee State Insurance Rs. 1.97 Lacs (Previous year Rs. 1.93 Lacs)' Stores & components and repairs Rs 196.34 Lacs (Previous year Rs. 351.35 Lacs)' Rent Rs. 3.15 Lacs (Previous year 4.83 Lacs)' and Insurance Rs. 0.05 Lacs (Previous year Rs. 55 Lacs) have been classified functionally under other heads of accounts.

1. Foreign currency exposure outstanding as on 31.03.2012 which has not been hedged Rs. 252.92 Lacs (Previous year Rs. 150.94 Lacs)

2. Related Party disclosures as identified by the management in accordance with the Accounting Standard 18 :

(a) Key Management Personnel and their relatives

Mr. G. P. Goenka (Chairman)

Mr. Shrivardhan Goenka (Director & son of the Chairman)

Mr. M. Mishra (Managing Director)

Mrs. M. Mishra (Wife of Managing Director)

(b) Associates/Group Companies :

(i) With whom the Company had transactions

Duncans Industries Limited' Duncans Tea Limited' Gujarat Carbon and Industries Limited' NRC Limited' Andhra Cements Limited (erstwhile associate company)' Silent Valley Investment Company Limited' Kavita Marketing Private Limited' ISG Traders Limited' Subh Shanti Services Limited' Sewand Investments Private Limited. Stone India Limited' Odyssey Travels Limited' Unimers India Limited

(ii) Others

Albert Trading Company Private Limited' Bargate Communications Private Limited' Boydell Media Private Limited' Continuous Forms (Calcutta) Limited' Dail Consultants Limited' Duncans Agro Chemicals Limited' North India Fertilisers Ltd.' Duncans Tea House Pvt. Limited' Infratech Software Services Private Limited' Julex Commercial Company Limited' Leyden Leasing and Financial Services Limited' Marleybone Travels and Resorts Private Limited' Stone Solar Private Limited' Octave Technologies Private Limited' Orchard Holdings Private Limited' Pentonville Software Limited' Santipara Tea Company Limited' Skylight Trading Company Limited' Sprint Trading Company Limited. Stone Intermodal Private Limited

Note : (a) In respect of the above parties' there is no provision for doubtful debts as on 31.03.2012 and no amount has been written off or written back during the year in respect of debts due from/to them.

(b) The above related party information is as identified by the management and relied upon by the auditors

3. Disclosure required vide clause 32 of the listing agreement

(a) Amount of loans/advances in the nature of loans outstanding from Associate/Group companies as at the year' ended 31st March 2012

Notes on Financial statements for the year ended 31st March' 2012

(Rs. in Lacs)

4. Contingent Liabilities 31.03.2012 31.03.2011

A In respect of various demands raised which in the opinion of the management are not tenable and are under appeal at various stages :

1. Sales Tax including Trade Tax 551.26 556.68

2. Entry Tax 237.50 -

3. Market Fee 176.00 -

4. Excise Duty 40.93 7.22

5. Electric Duty 2.70 2.70

6. Employees State Insurances Corp. 4.90 4.90 (On Good Work Bonus)

7. Sales Tax on Royalty 69.10 -

8. Liability for entry tax on fuel 169.83 -

9 Liability in respect of Railway Plot Rent 201.14 -

B Workers Claims 70.82 71.22

C Income Tax 370.99 -

5. Estimated amount of contracts remaining to be executed on capital account (net of advances) Rs. 0.04 Lacs (Previous year Rs. 26.07 Lacs).

6. The company is engaged primarily in the business of "Paper" and all other activities are incidental thereto. Further' the company sells primarily in the domestic market where its operations are governed by the same set of risks and returns and the overseas sales are insignificant. Accordingly the seperate primary and secondary segment reporting disclosure as envisaged in Accounting Standards (AS-17) on Segment Reporting is not applicable to the company.

7. Figures have been given in Rupees Lacs and have been rounded off to the nearest thousand.

8. Previous year figures have been regrouped / reclassified to confirm with current year presentation' whenever considered necessary


Mar 31, 2011

1) Estimated amount of contracts remaining to be executed on capital account (net of advances) Rs.26.07 lakhs (Previous year Rs. 77.36 Inkhs).

2) Continent Liabilities

SI. Particulars 31st March 2011 31st March 2010 No (Rs.In Lakhs) (Rs.In Lakhs)

A In respect of various demands raiwd.which in the opinion of the management are not tenable and are under appeal at various stages

i Sales Tax including 556.68 185.65 -Trude Tax

ii Entry Tax 237.50 108.58

iii Excise Duty 7.22 -

iv Electricity Duty 2,70 2.70

v Employee* State insurance 4.90 4.90 Corporation (On Good work bonus)

vi Claim* against the company - 173,07 not acknowledge as debts:Interest on Mandi Fee which is sub judice - to the extent ascertainable

B Workmen Claims 71.22 65.30

Note; Future cash muflnivs in roped of A tuHisifppenrtVnl ujH»n the outcome of jurlurmentsAleeisions

3) Capital work-in-progress includes machinery in stock, construction / erection of material, advances for construction/erection works and machinery etc

4) The company has investments in ISG Traders Ltd, (ISG) and ISG has, in turn, investments which form part of groups controlling interest in several companies. In addition, ISG has investment in preference shares as well as other classes of assets. Considering ihe fact the company's investments in ISG is of long term in nature, revenue recognition with respect to diminution, if any, in the value of investments in ISG has not been made.

5) The company is in the process of compiling information with regard to suppliers covered under Micro, Small and Medium Enterprise Development Act. 2006. To the extent classified, none of the suppliers fall under Micro, Small or Medium enterprises under the Act. Accordingly. no disclosure as required under Section 22 of the said Act has heen given in these accounts.

6) Foreign currency exposure outstanding as on 31.03.2011 which has not been hedged Rs. 150.94 lakhs. (Previous yearRs.321.11 lakhs).

7) Related Party disclosures as identified by the management in accordance with the Accounting Standard 18:

(a) Key Management Personnel and their relatives

Mr. C. R Goenka (Chairman and Whole Time Director)

Mr. S. V. Goenka (Director and son of Whole Time Director)

Mr M.Mishra (Managing Director)

Mrs. M. Mishra (Wife of Managing Director)

(b) Associates/Group Companies:

(i) With whom the Company had transactions

Duncans Industries Limited. Duncans Tea Limited. Gujarat Carbon and Industries Limited, NRC Limited. Andhra Cements Limited, Silent Valley Investment Company Limited. Kavita Marketing Private Limited. ISC Traders Limited, Subh Shanti Services Limited, Sewand Investments Private Limited. Stone India Limited. Odyssey Travels Limited, Unimers India Limited

(ii) Others

Albert Trading Company Private Limited, Bargate Communication Private Limited, Boydell Media Private Limited, Continuous Forms (Calcutta) Limited, Dail Consultant Limited. Duncans Agro Chemicals Limited, North India Fertilisers Ltd., Duncans Tea House Pvt. Limited, Infratech Software Services private Limited, Julex Commercial Company Limited, Leydon Leasing and Financial Services Limited, Marleyhone Travels and Resorts Private Limited. Stone Solar Private Limited, Octave Technologies Private Limited, Orchard Holdings Private Limited, Pentonville Software Limited, Santipara Tea Company Limited, Skylight Trading Company Limited, Sprint Trading Company Limited, Stone intermodal Private Limited.

8) c) in veiw of the inadequency of profit,excess remiuneration of Rs.62.34(including Rs.56.83 Lakhs for current year) of whole Time Director and managing director is subject to approval of the shareholders and central Government under clase C of section II of part II of Schedule XIII of companies'Act 1956.

9) Empolyee Benefits The diclosures required under Accounting Standard 15"Employee benefits"notified in the Companies (Accounting Standards) Rules 2006,are given below:

I. Defined contribution Scheme Contribution to defined Contribution Plan,recognised for the year are as under: Employee's Contribution to provident Fund Rs.134.97 lakhs(previous year 129.63 lakhs)

10) The company is engaged primarily in the business of "paper" and all other activities are incidental thereto. Further, the company sells primarily in the domestic market where its operations are governed by the same set of risks and returns and the over seas sales are insignificant. Accordingly the separate primary and secondary segment reporting disclosure as envisaged in Accounting Standards (AS-17) on Segment Reporting is not applicable to the company

11) Salary/wages Rs.38.15 lakhs (Previous year Rs.32.25 lakhs) Provident Fund and Employee State Insurance Rs. 1.93lakhs (Previous year Rs.0,96 lakhs), Stores & Components and Repairs Rs.0.55 Lakhs (Previous year Rs.285.155 lakhs), Rent Rs I.Hi Lakhs (Previous year 534 lakhs), ami Insurance Rs 0.S5 lakhs (Previous psw Rs.0.62 lakhs) have been classified functionally under other heads of accounts.

12) Miscellaneous income includes "Sale of clonal Plants ",Rs. 49.57 lakhs (Previous years - Rs :43.55 lakhs),

13)Additional information pursaunt to the provisions of paragraph,3,4 (c) and 4(d) of Part II of Schedule -VI of the Companies Act ,1956:- 14) Figures have been given in Rupees lakhs and have been rounded off to the nearest thousand.

15) Previous year's figures have been regrouped / rearranged whereever necessary.


Mar 31, 2010

1. Estimated amount of contracts remaining to be executed on capital account (net of advances) Rs. 77.36 lakhs (Previous year Rs.33.57 lakhs).

2. Contingent Liabilities Year Ended Period Ended S.No. Particulars 31st March 31st March 2010 2009 A In respect of various demands raised, which in the opinion of the management are not tenable and are under appeal at various stages

i Sales Tax 185.65 6.81

ii Entry Tax 108.58 -

iii Electricity Duty 2.70 2.70

iv Employees State Insurance Corporation (On good work bonus) 4.90 4.90

v Claims against the company not acknowledged as debts:

Interest on Mandi Fee which is sub judice- to the extent ascertainable 173.07 161.68

B Workmen Claims 65.30 64.02



Note: Future cash outflows in respect of A to B is dependent upon the outcome of judgements/decisions

3. Capital work-in-progress includes machinery in stock, construction/erection of material, advances for construction/erection works and machinery etc.

4. The High Court at Kolkata vide its order dated 11th September 2009 has approved the scheme for merger of the wholly owned subsidiary company viz., Pallmall Edusystems and Medicare Services Private Limited (PEMSPL) into ISG Traders Ltd ISG), a group company with effect from 01.04.2008. Accordingly the Company has received equity shares of ISG in lieu of Investments in PEMSPL.

5. The Company is in the process of finalizing its wage agreement. Estimated provisions in these respect have been made during the past two years including in respect of long term benefits.

6. The company is in the process of compiling information with regard to suppliers covered under Micro, Small and Medium Enterprise Development Act, 2006. To the extent classified, none of the suppliers fall under Micro, Small or Medium enterprises under the Act. Accordingly, no disclosure as required under Section 22 of the said Act has been given in these accounts.

7. Foreign currency exposure outstanding as on 3 1.03.2010 which has not been hedged Rs. 321.11 lakhs (previous period Rs. 26.86 lakhs).

8. Related Party disclosures as identified by the management in accordance with the Accounting Standard 18:

(a) Key Management Personnel and their relatives

Mr. G. R Goenka (Chairman and Whole Time Director)

Mr. S. V. Goenka (Director and son of Whole Time Director)

Mr. M. Mishra (Managing Director)

Mrs. M. Mishra (Wife of Managing Director)

(b) Subsidiary Company

Pallmall Edusystems and Medicare Services Private Limited (merged with ISG Traders Limited effect from 01.04.2008)

(c) Associates/Group Companies:

(I) With whom the Company had transactions

Duncans Industries Limited, Duncans lea Limited, Gujarat Carbon and Industries Limited, NRC Limited, Andhra Cements Limited, Silent Valley Investment Company Limited, Kavita Marketing Private Limited, ISG Traders Limited, Subh Shanti Services Limited, Sewand Investments Private Limited, Stone India Limited, Odyssey Travels Limited, Unimers India Limited

(ii) Others

Albert Trading Company Private Limited, Bargate Communications Private Limited, Boydell Media Private Limited, Continuous Forms (Calcutta) Limited, Dail Consultants Limited, Duncans Agro Chemicals Limited, North India Fertilisers Ltd., Duncans Tea House Pvt. Limited, Halcyon Properties Limited, Infratech Software Services Private Limited, Julex Commercial Company Limited, Leyden Leasing and Financial Services Limited, Maharastra Polybutenes Limited, Marleybone Travels and Resorts Private Limited, Napier Softech Private Limited, National Standard India Limited, Octave Technologies Private Limited, Orchard Holdings Private Limited, Oxides and Specialities Limited, Portland Holding Private Limited, Pentonville Software Limited, Santipara Tea Company Limited, Skylight Trading Company Limited, Sprint Trading Company Limited.

The parties listed in (ii) above, though are not required to be disclosed as per the requirement of AS-18, have been included here in above in view of the requirement of Clause 32 of the Listing Agreement.

9. Employee Benefits

The disclosures required under Accounting Standard 15" Employee Benefits" notified in the Companies (Accounting Standards) Rules 2006, are given below:

Defined Contribution Scheme

Contribution to Defined Contribution Plan, recognized for the period are as under:

Employers Contribution to Provident Fund Rs. 129.63 lakhs (Previous period Rs 186.55 lakhs)

Defined Benefit Scheme

The employees gratuity fund scheme is a defined benefit plan. The present value of obligation is determined based on actuarial valuation using the Projected Unit Credit Method, which recognizes each period of service as giving rise to additional unit of employee benefit entitlement and measures each unit separately to build up the final obligation. The obligation for pension and leave encashment is recognized in the same manner as gratuity.

10. The company is engaged primarily in the business of "Paper" and all other activities are incidental thereto. Further, the company sells primarily in the domestic market where its operations are governed by the same set of risks and returns and the overseas sales are insignificant. Accordingly the separate primary and secondary segment reporting disclosure as envisaged in Accounting Standards (AS-17) on Segment Reporting is not applicable to the company.

11. Salary/wages Rs.32.25 lakhs (Previous period Rs.51.90 lakhs) Provident Fund and Employee State Insurance Rs.0.96 lakhs (Previous period Rs. 1.79 lakhs), Stores & components and repairs Rs 285.55 Lakhs (Previous period Rs.416.77 lakhs), Rent Rs 5.34. Lakhs (Previous period 5.90 lakhs), and Insurance Rs 0.62 lakhs (Previous period Rs. 1. 10 lakhs) have been classified functionally under other heads of accounts.

12. Figures have been given in Rupees lakhs and have been rounded off to the nearestthousand.

13. The figures of the current year relates to the period of twelve months and are therefore not comparable with the figures of the previous period of Eighteen months. However, previous periods figures have been regrouped /rearranged wherever necessary.

Signatures to schedule 1 to 17 forming part of Balance Sheet and Profit&Loss account asperourreportofevendate.



 
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