Mar 31, 2018
Notes to Financial Statements for the year ended March 31, 2018
43. FIRST TIME ADOPTION OF IND AS-DISCLOSURES, RECONCILIATION ETC.
a) Reconciliation in terms of Ind AS 101 "First time adoption of Indian Accounting Standards"
i) Reconciliation of Equity as at March 31, 2017 and April 1, 2016
Particulars |
Ref. Note No. {Under 43(c)} |
As at March 31, 2017 (End of last period presented under Previous GAAP) |
As at April 1,2016 |
||||
As per Previous GAAP |
Effect of transition to Ind AS |
As per Ind AS |
As per Previous GAAP |
Effect of transition to Ind AS |
As per Ind AS |
||
ASSETS |
|||||||
1. Non-Current Assets |
|||||||
(a) Property, Plant and Equipment |
(0 |
8,282.63 |
32,124.84 |
40,407.47 |
8,514.76 |
32,124.84 |
40,639.60 |
(b) Capital work-in-progress |
245.29 |
245.29 |
53.99 |
53.99 |
|||
(c ) Biological Assets other than bearer plants |
(viii) |
32.16 |
32.16 |
55.09 |
55.09 |
||
(d) Financial Assets |
|||||||
(i) Investments |
(iii) |
3,229.70 |
(1,847.04) |
1,382.66 |
3,229.70 |
(1,944.81) |
1,284.89 |
(ii) Others |
(ii) |
216.09 |
(4.36) |
211.73 |
216.00 |
(4.23) |
211.77 |
(e) Other Non current Assets |
618.76 |
618.76 |
552.67 |
- |
552.67 |
||
2. Current Assets |
|||||||
(a) Inventories |
3,287.52 |
3,287.52 |
2,691.39 |
2,691.39 |
|||
(b) Financial Assets |
|||||||
(i) Investments |
(iv) |
3,202.61 |
53.43 |
3,256.04 |
- |
- |
- |
(ii) Trade receivables |
668.34 |
668.34 |
1,030.74 |
1,030.74 |
|||
(iii) Cash and Cash equivalents |
489.64 |
489.64 |
420.01 |
420.01 |
|||
(iv) Bank balances other than (iii) |
70.45 |
70.45 |
106.77 |
. |
106.77 |
||
above |
|||||||
(v) Others |
20.56 |
20.56 |
11.28 |
11.28 |
|||
(d) Other current Assets |
704.99 |
4.23 |
709.21 |
659.21 |
4.23 |
663.44 |
|
(e) Asset held for sale |
3.59 |
3.59 |
1.59 |
- |
1.59 |
||
Total Assets |
21,040.17 |
30,363.26 |
51,403.43 |
17,488.11 |
30,235.12 |
47,723.23 |
|
EQUITY AND LIABILITIES |
|||||||
Equity |
|||||||
(a) Equity share capital |
1,560.83 |
1,560.83 |
1,560.83 |
- |
1,560.83 |
||
(b) Other Equity |
43(a)(ii) |
10,789.86 |
22,931.11 |
33,720.97 |
4,795.60 |
22,804.28 |
27,599.88 |
Liabilities |
|||||||
1 Non-current Liabilities |
|||||||
(a) Financial liabilities: |
|||||||
(i) Other financial liabilities |
839.48 |
839.48 |
783.70 |
- |
783.70 |
||
(b) Provisions |
1,033.71 |
1,033.71 |
1,043.84 |
1,043.84 |
|||
(c) Deferred tax liabilities (net) |
(vi) |
452.37 |
7,432.15 |
7,884.52 |
1,063.16 |
7,430.84 |
8,494.00 |
2 Current Liabilities |
|||||||
(a) Financial liabilities: |
|||||||
(i) Borrowings |
424.77 |
424.77 |
663.32 |
663.32 |
|||
(ii) Trade payables |
4,287.11 |
4,287.11 |
6,283.87 |
6,283.87 |
|||
(iii) Other financial liabilities |
976.85 |
976.85 |
643.39 |
- |
643.39 |
||
(b) Other Current liabilities |
560.68 |
560.68 |
472.28 |
- |
472.28 |
||
(c) Provisions |
55.06 |
55.06 |
50.26 |
- |
50.26 |
||
(d) Current tax liabilities (Net) |
59.45 |
59.45 |
127.86 |
127.86 |
|||
Total Equity and Liabilities |
21,040.17 |
30,363.26 |
51,403.43 |
17,488.11 |
30,235.12 |
47,723.23 |
ii) Reconciliation of Total Equity as given above:
Particulars |
Ref. Note No. {Under 43(c)} |
As at March 31, 2017 (End of last period presented under Previous GAAP) |
As at April 01, 2016 (Date of transition) |
Total equity (shareholders'' funds) under Previous GAAP |
12,350.69 |
6,356.42 |
|
Ind AS Adjustment |
|||
Effect on recognition of biological assets other than bearer plant |
(viii) |
32.17 |
55.09 |
Effect of fair valuation of Equity instrument measured at fair value through other comprehensive income |
(iii) |
(1,847.05) |
(1,944.81) |
Effect of fair valuation of current investment |
(iv) |
53.43 |
|
Effect of fair valuation on date of transition as deemed cost and other adjustments under the head Property, Plant and Equipment |
(0 |
32,124.83 |
32,124.83 |
Others |
(ii) |
(0.13) |
- |
Adjustment of Deferred tax Liability created due to Ind AS impact and reversal of the same during the year. |
(vi) |
(7,432.15) |
(7,430.84) |
Total adjustment to equity |
22,931.11 |
22,804.28 |
|
Total equity under Ind AS |
35,281.80 |
29,160.70 |
iii) Reconciliation of Statement of Profit and Loss for the year ended March 31, 201 7
Particulars |
Ref. Note No. {Under 43(c)} |
As per IGAAP for the year ended March 31, 2017 |
Ind AS Adjustments |
As per Ind As for the year ended March 31, 2017 |
REVENUE |
||||
Revenue from operations |
34,367.21 |
34,367.21 |
||
Other Income |
151.49 |
56.19 |
207.68 |
|
Total Revenue |
34,518.70 |
56.19 |
34,574.89 |
|
EXPENSES |
||||
Cost of materials consumed |
10,276.49 |
10,276.49 |
||
Changes in inventories of finished goods, Stock-in-Trade and work-in progress |
316.54 |
316.54 |
||
Employee Benefit Expenses |
2,927.42 |
(18.72) |
2,908.70 |
|
Finance costs |
127.38 |
127.38 |
||
Depreciation, and Amortisation Expenses |
412.38 |
412.38 |
||
Other Expenses |
13,749.36 |
25.81 |
13,775.17 |
|
Total Expenses |
27,809.57 |
7.09 |
27,816.66 |
|
Profit/(loss) before tax |
6,709.13 |
49.10 |
6,758.23 |
|
Tax Expense: |
||||
Current tax |
1,325.65 |
1,325.65 |
||
Deferred tax |
(vi) |
(610.78) |
7.79 |
(602.99) |
Profit/(loss) for the year |
5,994.26 |
41.31 |
6,035.57 |
|
Other Comprehensive Income |
||||
A (i) Items that will not be reclassified to profit or loss |
(0.00) |
79.04 |
79.04 |
|
(ii) Income tax related to items that will not be reclassified to profit and loss |
0.00 |
6.48 |
6.48 |
|
Total Comprehensive Income for the year, net of tax |
5,994.26 |
126.83 |
6,121.09 |
iv) There is no significant reconciliation items between cash flow prepared under previous GAAP and prepared under Ind AS.
b) FIRST-TIME ADOPTION -
Mandatory Exceptions and optional Exemptions
These financial statements are covered by Ind AS 101, "First Time Adoption of Indian Accounting Standards", as they are the Company''s first Ind AS financial statements for the year ended March 31, 2018.
i) Overall principle:
a) The Company has prepared the opening balance sheet as per Ind AS as at April 1, 2016 (the transition date) by recognizing all assets and liabilities
whose recognition is required by Ind AS, not recognizing items of assets or liabilities which are not permitted by Ind AS, by reclassifying certain items from Previous GAAP to Ind AS as required under the Ind AS, and applying Ind AS in the measurement of recognized assets and liabilities. The accounting policies that the Company used in its opening Ind-AS Balance Sheet may have differed from those that it used for its previous GAAP. The resulting adjustments arising from events and transactions occuring before the date of transition to Ind-AS has been recognized directly in retained earnings at the date of transition.
However, this principle is subject to certain mandatory exceptions and certain optional exemptions availed by the Company as detailed below. ii) Derecognition of financial assets and financial liabilities
The Company has applied the derecognition requirements of financial assets and financial liabilities prospectively for transactions occurring on or after April 1, 2016 (the transition date).
iii) Fair Value as deemed cost for Property, Plant and Equipment
Property, plant and equipment has been carried in accordance with previous GAAP carrying value as deemed cost at the date of transition excepting freehold land land valued at Fair value at the date of transition, which has been considered as deemed cost.
iv) Impairment of financial assets
Ind AS 109 "Financial Instruments" requires the impairment to be carried out retrospectively; however, as permitted by Ind AS 101, the Company, has used reasonable and supportable information that is available without undue cost or effort to determine the credit risk at the date that financial instruments were initially recognized in order to compare it with the credit risk at the transition date. Further, the Company has not undertaken an exhaustive search for information when determining, at the date of transition to Ind AS, whether there have been significant increases in credit risk since initial recognition, as permitted by Ind AS 101.
v) Determining whether an arrangement contains a lease
The Company as on the date of transition complied with Ind AS 17 "Leases" to determine whether an arrangement contains a Lease on the basis of facts and circumstances existing at the date of transition to Ind AS.
ix) Business Combination
In terms of Ind AS 101 "First Time Adoption of Indian Accounting Standards", the Company has elected to not to apply Ind AS 103 "Business Combination" for past combinations.
c) Explanatory Notes to reconciliation between Previous GAAP and Ind AS (i) Property, Plant and Equipment
The company has used previous GAAP carrying value as deemed cost excepting fair value of certain Property, Plant and Equipment (PPE) ie. freehold land as carried out by an external valuer in its opening Ind AS financial statement as deemed cost.
i) the aggregate of those fair values is Rs. 32,145.82 lakhs.
ii) the aggregate adjustment to the carrying amount of land reported under previous GAAP is Rs.32,1 24.84 lakhs.
The fair value of PPE has been determined based on the valuation carried out by External Independent Valuer. The fair value of the properties was determined based on market value of similar assets, significantly adjusted for differences in the nature, location or condition of the specific items of PPE. The fair valuation involves higher degree of uncertainty and subjectivity."
(ii) Fair Valuation of financial assets and liabilities
Under previous GAAP, receivables and payables were measured at transaction cost less allowances for recoverability, if any.
Under Ind AS, financial assets and liabilities are initially recognised at fair value and subsequently measured at amortised cost using the effective interest rate method, less allowances for impairment, if any. The resulting changes are recognised either under finance income or expenses in the Statement of profit and loss.
On transition, the company has fair valued certain financial assets including Security deposits. This has resulted in decrease in total equity by Rs. 0.13 lakhs and Rs. nil lakhs as on March 31, 2017 and April 1, 2016 respectively.
(iii) Investment in Equity Instruments
Under previous GAAP, Non-current Investments were stated at cost less provision, if any, for diminuation in value other than temporary.
Under Ind AS, the Company has made an irrevocable decision to consider equity instruments not held for trading to be recognized at FVTOCI.
On transition, the Company has recognized a loss of Rs. 1,847.04 lakhs as on March 31, 2017 and Rs. 1,944.81 lakhs as on April 1, 2016 in OCI with the corresponding decrease in the carrying value of such investments.
(iv) Fair valuation of Current Investment
Under previous GAAP, Current investments were measured at lower of cost or market price.
Under Ind AS, these investment are measured at fair value through profit or loss and accordingly, difference between the fair value and carrying value is recognised in Statement of profit or loss.
On transition, the Company has recognised a gain of Rs. 53.43 lakhs as on March 31, 2017 and Rs. nil lakhs as on April 1, 2016 in respect of mutual funds with corresponding increase in total equity.
(v) Borrowings
Under previous GAAP, transaction costs incurred in connection with borrowings are accounted upfront and charged to Statement of profit and loss in the year in which such costs were incurred.
Under Ind AS, Finance Liabilities consisting of Long Term Borrowings are to be fair valued and designated and measured at amortised cost based on Effective Interest Rate (EIR) method. The transaction costs so incurred are required to be deducted from the carrying amount of borrowings on initial recognition. These costs are recognized in Statement of profit and loss over the tenure of the borrowing as part of the interest expense by applying EIR.
On transition, the Company did not have any unamortised portion of oustanding borrowings. (vi) Taxation
Deferred tax has been recognized in respect of on accounting differences between previous GAAP and Ind AS. Moreover, carryforward of unused tax credits are to be treated as deffered tax assets which was earlier considered as Other non-current non-financial assets.
These adjustments have resulted increase in deferred tax liability and decrease in equity by Rs. 7,432.16 lakhs and Rs. 7,430.85 lakhs as on March 31, 2017 and April 1, 2016 respectively.
(vii) Remeasurement of Defined Benefit Plan
Under previous GAAP and Ind AS, the Company recognizes cost related to its post-employment defined benefit plan on an actuarial basis. Under previous GAAP, the entire cost, including re-measurement, are charged to Statement of profit and loss.
Under Ind AS, the actuarial gain and losses from part of remeasurements net defined benefit liability/asset which is recognised in OCI. Consequently, the tax effect on the same has also been recognised in OCI instead of statement of profit and loss.
Under Ind AS, the entity is permitted to transfer amounts recognized in the Other Comprehensive Income within equity. The Company has taken recourse of the said provision and has transferred all re-measurement costs recognized relating prior to the transition date from Retained earnings as on the date of transition as permitted under Ind AS.
On transition, this has resulted in reclassification of re-measurement losses on defined benefit plans of Rs. 18.72 lakhs for the year ended March 31, 2017 from Statement of profit and loss to OCI.
(viii) Fair Value measurements for biological assets other than bearer plants
Under previous GAAP, biological assets were not required to be recognised. Under Ind AS, these have been recognised at fair value less costs to sell and change in fair value has been recognised in profit or loss.
(ix) Previous GAAP figures have been reclassifed/regrouped wherever necessary to confirm with financial statements prepared under Ind AS.
44. FAIR VALUE MEASUREMENTS FOR BIOLOGICAL ASSETS OTHER THAN BEARER PLANTS
The following table gives the information about how the fair value of the biological assets were determined:
|
(Rs. n lakhs) |
||||
Biological Asset |
As at 31-Mar-18 |
As at 31-Mar-17 |
As at April 1, 2016 |
Fair value hierarchy |
Valuation techniques and key inputs |
Unharvested clonal plants |
27.72 |
32.16 |
55.09 |
Level 2 |
Fair value is being arrived at based on the observable market prices of clonal plants. The same is applied on the quantity of the clonal plants unharvested using average plucking in various fields. |
45. The financial risk associated to agriculture would include climate change, price fluctuation and input cost increases. Being dependent on rainfall, any shortfall would directly impact the production. The sale of clonal plants largely through the farmer system, any price fluctuation would impact profitability. Increased wages also has a direct impact on the cost of production because of labour intensive nature of the business operations.
Management is continuously monitoring all the above factors. Investment in irrigation, a planned replanting programme to ensure higher yields and improving efficiency of labour and modernisation are some of the measures taken by the management to mitigate the risks.
46. Figures have been given in Rupee lakhs and have been rounded off to two decimal places.
47. Previous year''s figures have been regrouped/reclassified to confirm with current year presentation wherever considered necessary.
As per our report of even date For Jain Pramod Jain & Co. |
On behalf of the Board |
|||
Chartered Accountants |
||||
(P.K. Jain) |
||||
Partner |
G.P. Goenka |
Shiromani Sharma |
||
Executive Chairman |
M.P. Pinto |
|||
Shrivardhan Goenka |
||||
Place: Kolkata |
Saurabh Arora |
P.K. Agrawal |
Madhukar Mishra |
Savita L.. Acharya (Ms) |
Date: 21st May, 2018 |
Company Secretary |
Chief Financial Officer |
Managing Director |
Directors |
Mar 31, 2016
1 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.
2. There is no movement in the number of share outstanding at the beginning and at the end of the year.
3 Deferred Tax Asset on account of timing differences with respect to depreciation has been considered and recognized in the accounts. As a matter of prudence, the amount of unabsorbed business losses has been ignored.
4. 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
5. 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 2016. 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.
6. The figure does not include any amounts, due and outstanding, to be credited to Investor Education and Protection Fund.
7. The company had filed review petition before The Honâble High Court of Allahabad pertaining to levy of Mandi Fees on goods procured in earlier years. Pending decision of the said petition, Rs.591.60 Lakhs (including interest amounting to Rs.361.60 lakhs), out of which Rs. 557.18 Lakhs already paid, has been included in other expenses in the financial statements.
8. Gross block and Net block of Buildings include flat acquired under joint ownership with others at New Delhi amounting Rs 55.30 Lakhs and Rs 21.13 Lakhs .(Previous year Rs.55.30 Lakhs and Rs 26.45 Lakhs) respectively.
9. During previous the year, depreciation had been provided based on the life of the assets as per Schedule II of the Companies Act, 2013 which had become effective from 1st April, 2014. In term of said schedule, the carrying amount of the asset existing as on 1st April 2014 has been depreciated over the remaining life of the assets. Consequent upon the application of schedule II as above, Where the remaining life of the assets had exhausted as on 1st April 2014, the carrying amount of Rs.75.05 Lakhs (net of deferred tax of Rs.33.56 Lakhs) had been adjusted against general reserve.
10. Market quotation in respect of Non-traded shares are not available since long, therefore the market value of these investments has not been stated.
11 Keeping in view of the provisions of Accounting Standard on Investments (AS-13) , the company âs investment in ISG Traders Ltd has been evaluated based on the valuation carried out by an independent firm of Chartered Accountants and based on such valuation no change in the provision for diminution is required.
12 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.
13. Security deposits include Rs. 35.00 lakhs (previous year Rs. 35.00 lakhs) with a compnay in which directors are interested as a member / director.
14 Fixed Deposit lodged with banks against Bank Guarantees issued by them.
15 Against employee security deposits.
16. Includes excess remuneration in respect of earlier years written back amounting to Rs. 21.57 Lakhs (Previous Year Rs. Nil) on non-receipt of necessary approval from Central Government in respect.
17 The Board approved payment of commission of Rs. 82.50 Lakhs for the financial year 2015-16 to Executive director in terms of his appointment which is subject to the approval of the Central Government in view of inadequacy of profit which has not been recognized in the financial statements. The same will be recognized on receipt of necessary approval of the Central Government.
18. During the year , the company has incurred Rs. 78.34 Lakhs (previous year Rs. 87.15 Lakhs ) on account of research and development expenses which has been charged to Statement of Profit and Loss.
19. The Company has operating lease arrangement for office accommodation with tenure extending up to 9 yrs. Term of lease arrangement include escalation clause for rent on expiry of 36 months from the commencement date of such lease and deposit / refund of security deposit etc. Expenditure incurred on account of rent during the year and recognized in the Statement of Profit and Loss account amounts to Rs. 40.50 lakhs (previous year Rs.37.89 lakhs).
20. The Companyâs pending litigations comprises 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.
21. Commitments
Estimated amount of contracts remaining to be executed on capital account (net of advances) Rs. 13.47 Lakhs (Previous year Rs. 91.72 Lakhs).
22. Foreign currency exposure outstanding as on 31.3.2016 which has not been hedged Rs. Nil (Previous year Rs. Nil )
Defined benefit scheme
i) The employees gratuity fund scheme is defined benefit plan. The present value of obligation is determined based on actuarial valuation using the projected unit credit method, which recognizes each year 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.
Note: (i) 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.
(ii) The Company expects to contribute Rs. 100 Lakhs ( Previous Year Rs. 55.00 Lakhs) to Gratuity fund in 2016-17.
Note:
(a) In respect of the above parties, there is no provision for doubtful debts as on 31.3.2016 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.
23. The company is engaged primarily in the business of âPaperâ 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.
24. Figures have been given in Rupees Lakhs and have been rounded off to two decimal places.
25. Previous year figures have been regrouped/ reclassified to confirm with current year presentation, wherever considered necessary
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 ujHûn 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.