Notes to Accounts of Sundaram Multi Pap Ltd.

Mar 31, 2018

1. Financial Risk Management

The Company''s activities expose it to market risk, liquidity risk and credit risk. Market risk is the risk of loss of future earnings, fair value or future cash flows that may result from a change in the price of financial instrument. The value of a financial instrument may change as a result of changes in interest rates, foreign currency exchange rates and other market changes that affect market risk sensitive instruments. Market risk is attributable to all market sensitive financial instruments including investments and deposits, foreign currency receivable and payables and loans and borrowings.

If the risk exposure is significant then management reviews the position and takes decision regarding hedging / other risk strategies to mitigate such risk exposures.

Interest Rate Risk

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in the market interest rate.

Foreign Currency Risk

The Company is exposed to foreign exchange risk through its purchases from overseas suppliers in various foreign currencies. These exposures are unhedged.

However, the Company did not have any outstanding dues as on 31st March, 2018 Credit Risk

Credit risk arises from the possibility that counter party may not be able to settle their obligations as agreed. To manage this, the Company periodically assesses the financial reliability of customers, taking into account the financial conditions, current economic trends, and analysis of historical bad debts and ageing of accounts receivable. Individual risk limits are set accordingly.

The company considers the probability of default upon initial recognition of asset and whether there has been a significant increase in credit risk on an ongoing basis throughout each reporting period. To assess whether there is a significant increase in credit risk the Company compares the risk of a default occuring on the asset as at the reporting date with the risk of default as at the date of initial recognition. It considers reasonable and supportive forwarding-looking information such as:

(i) Actual or expected significant adverse change in business

(ii) Actual or expected significant change in the operating results of the counterparty

(iii) Financial or economic conditions that are expected to cause a significant change to the counterparty’s ability to meet its obligation.

A default on a financial asset is when the counterparty fails to make contractual payments within 30-60 days of when they fall due. This definition of default is determined by considering the business environment in which entity operates and other macro-economic factors.

Financial assets are written off when there is no reasonable expectation of recovery. Where loans or receivables have been written off, the Company may engage in enforcement activity to attempt to recover the receivable due. Where recoveries are made, these are recognized in profit or loss.

The carrying amounts of financial assets represent the maximum credit risk exposure

There are no specific forward looking information estimated by the management.

Liquidity risk

Liquidity risk is defined as the risk that the Company will not be able to settle or meet its obligations on time or at a reasonable price. The Company''s treasury department is responsible for liquidity, funding as well as settlement management. In addition, processes and policies related to such risks are overseen by senior management. Manage men t monitors the company''s net liquidity position through rolling forecasts on the basis of expected cash flows.

2. Capital Management

For the purposes of the Company''s capital management, capital includes issued capital and all other equity reserves. The primary objective of the Company''s Capital Management is to maximize shareholder value. The company manages its capital structure and makes adjustments in the light of changes in economic environment and the requirements of the financial statements

The company monitors capital using gearing ratio, which is total de bt divided by total capital plus d ebt.

Notes to first time adoption

1 Fair valuation as deemed cost for Intangible Assets:

The Company has considered net block as on 01-Apr-2016 as the fair value for intangible assets, except brand of Rs. 100.28 lakhs, in accordance with stipulations of Ind AS 101 with the resultant impact being accounted for in the reserves. The Company has written off brand since it is not probable that the expected future economic benefits that are attributable to the asset will flow to the entity.

2 Fair valuation for Financial Assets:

The Company has valued financial assets (other than Investment in subsidiary which is accounted at cost), at fair value. Impact of fair value changes as on the date of transition, is recognized in opening reserves and changes thereafter are recognized in Statement of Profit and Loss or Other Comprehensive Income, as the case may be.

3 ECL Model

Under Ind AS, impairment allowance has been determined based on ECL model. Due to this model, the company impaired its trade receivable by Rs.414.86 lakhs as on the date of transition which is recognized in retained earnings. The impairment of Rs. 414.86 lacs for the year ended 31st March, 2017 is recognized in profit or loss.

4 Loan from SICOM (Nagpur)

As per Ind AS 8, an entity shall correct material prior period errors retrospectively in the first set of financial statements approved for issue after their discovery by:

(a) restating the comparative amounts for the prior period(s) presented in which the error occurred; or

(b) if the error occurred before the earliest prior period presented, restating the opening balances of assets, liabilities and equity for the earliest prior period presented.

Under Indian GAAP, prior period error relating to payable to SICOM was accounted in borrowing for the year ended 31-Mar-16 of INR 20.64 lakhs. This is adjusted in the opening balance sheet as it related to earlier years resulting in increase in retained earnings and reduction in Borrowings of Rs. 20.64 lakhs on the date of transition.

5 Deferred Tax:

The impact of transition adjustments together with Ind AS mandate of using balance sheet approach (against profit and loss approach in the previous GAAP) for computation of deferred taxes has resulted in charge to the Reserves, on the date of transition, with consequential impact to the Statement of Profit and Loss for the subsequent periods.

6 Prior Period Error

"As per Ind AS 8, an entity shall correct material prior period errors retrospectively in the first set of financial statements approved for issue after their discovery by:

(a) restating the comparative amounts for the prior period(s) presented in which the error occurred; or

(b) if the error occurred before the earliest prior period presented, restating the opening balances of assets, liabilities and equity for the earliest prior period presented.

Under Indian GAAP, prior period error relating to expenses were recognized in the statement of profit or loss for the year ended 31 March 2016 of Rs. 9.17 lakhs. This is adjusted in the opening balance sheet as it related to earlier years resulting in reduction in retained earnings and increase in Trade Payables of Rs. 9.17 lakhs on the date of transition.

7 Change in accounting policy for recognition of costs relating to Post Employment Benefit Plan:

Both under Indian GAAP and Ind AS, the company recognized costs related to its post-employment defined benefit plan on actuarial basis. Under Indian GAAP, the entire cost, including actuarial gain and loss, are charged to profit or loss. Under Ind AS, measurements (comprising of actuarial gains and losses, the effects of asset ceiling, excluding amounts included in net interest on the net defined benefit liability and the return on the plan assets excluding the amount included in net interest on the net defined benefit liability) are recognized in balance sheet through other comprehensive income. Thus, employee benefits expense is reduced by Rs. 16.86 lacs and is recognized in other comprehensive income during the year ended 31 March 2017.

40 Previous year figures have been re-grouped/re-classified wherever considered necessary to compare with current year figures.

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Mar 31, 2016

b) Rights, preferences and restrictions attached to Equity Shareholders:

The company has only one class of equity shares having a face value of ? 1/- per share. Each holder of equity shares is entitled to one vote per equity share. A member shall not have any right to vote whilst any call or other sum shall be due and payable to the company in respect of any of the shares of such member. All equity shares of the company rank pari passu in all respects including the right to dividend.

In the event of winding-up, subject to the rights of holders of shares issued upon special terms and conditions, the holders of equity shares shall be entitled to receive remaining assets, if any, in proportion to the number of shares held at the time of commencement of winding-up.

The shareholders have all other rights as available to equity shareholders as per the provisions of the Companies Act, 2013, read together with the memorandum of association and articles of association of the company, as applicable.

c) The company does not have any holding company or ultimate holding company. Promoter shareholding in the company including persons acting in concert with the promoters as on 31 March 2016 is 69,455,585 equity shares i.e. 32.21% of the equity share capital of the company. Previous year 31 March 2015 is 76,229,348 equity shares i.e. 35.36 %.

* Citigroup Global Markets Mauritius holds 572,702 Shares i.e 0.27% as on 31 March 2016

e) The Company has alloted 143,737,182 (FV - ? 1/-) equity shares by way of Bonus issue in the Financial Year 2012-13 in the ratio 1:2.

** Secured primarily by first pari passu charge over stock and book debts of the Company with other working capital lender and personal guarantee of three Directors and collaterally secured by second pari - passu charge (hypothecation and mortgage) over the fixed assets (movable and immovable) of the company. Further, additional colleteral security carrying first pari-passu charge in the form of pledge of promoter''s shares to the extent of 100% of E-Class Eduaction System Ltd. has also been given. The said loan carries interest rate ranging between 2.75% to 3% above base rate.

### It consist of loan from three Directors and are interest free. Further, all the loans are provided by the director from their own funds.

## All inter corporate deposits are taken against pledge of Promoters Equity Shares held in the Company.

Central Excise (Appeals) - IV pertaining to FY 2012-13

(Dispute regarding demand raised on excise duty of since charges for the financial year 2012-2013, matter disputed with Commissioner of Central Excise (Appeals) - IV)

Note 1.

In the opinion of the management, current assets, loans, advances and deposits are approximately of the value stated, if realized in the ordinary course of business. The provision of all known liabilities is adequate and not in excess of the amount reasonably necessary.

Note 2.

Balances of certain trade receivables, trade payables and loans and advances are subject to confirmations / reconciliation and consequential adjustments, if any. The management does not expect any material variation affecting the current year''s financial statements on account of such reconciliation / adjustments.

Note 3.

Disclosure under MSMED Act, 2006:

The Company has not received any information from the “suppliers” regarding their status under the Micro Small and Medium Enterprises Development Act, 2006 and hence disclosures, if any, relating to the amounts as at year end together with interest paid / payable as required under the said act have not been given.

Note 4

Segment Reporting:

Primary Segment (Business):

The Company operates in single business segment of manufacture and sale of exercise note books and paper. Hence, further disclosure required as per Accounting Standard AS-17 “Segment Reporting” is not given.

Note 35

Related Party Disclosures:

a) List of related parties with whom the Company has entered into transactions during the year in the ordinary course of business: Relationship Name Nature

Wholly owned Subsidiary E Class Education System Limited Company

Key Management Personnel Mr. Amrut P. Shah Chairman & Managing Director

(KMP)

Mr. Shantilal P. Shah Whole-time Director

Mr. Hasmukh A. Gada Whole-time Director (Resigned w.e.f 1^st April 2015)

Mr. Manik R. Makwana Company Secretary

Enterprise over which KMP are Sundaram Bio-Tech Pvt Ltd Company

able to exercise significant

influence

Relatives of KMP Mr. Raichand P. Shah Brother of Amrut P. Shah & Shantilal P. Shah

Note 5:

Employee benefits

6. Defined contribution plans:

The Company makes Provident Fund contributions which are defined contribution plans, for qualifying employees. Under the Schemes, the Company is required to contribute a specified percentage of the payroll costs to fund the benefits. Provident fund contributions amounting to '' 6.72Lacs (31 March 2015: ''12.66Lacs) have been charged to the Statement of Profit and Loss. The contributions payable to this plan by the Company is at rates specified in the rules of the scheme.

7. Defined benefit plans

The Company has a defined benefit gratuity plan. Every employee who has completed continuous service for five years or more gets a gratuity on departure at 15 days salary (last drawn salary) for each completed year of service. The scheme is funded with an insurance Company in the form of a qualifying insurance policy.

Note 8

Disclosure in respect of lease:

The Company has entered into operating lease arrangements for office premises. The leases are non-cancellable and are for a period of 1 November 2014 to 31 October 2017 and may be renewed for a further period of 2 years based on mutual agreement of the parties. The lease agreements provide for an increase in the lease payments by 8 to 10% every year.

Note 9

On 14th November 2014, the Board of Directors announced a plan to permanently close down Nagpur Paper Unit subject to the completion of necessary formalities. This is not a separate segment as per AS 17, Segment Reporting. The disposal is consistent with the Company''s long-Term strategy to focus its activities at Palghar unit. The Company is actively seeking a buyer for the plant & machineries and other fixed assets at Nagpur unit and hopes to complete the sale by the end of March 2017. At 31 March 2016, the carrying amount of the assets of the Nagpur unit was Rs, 3107.03 Lakhs (previous year Rs, 3279.31 lakhs) and its liabilities were Rs, 415.52 lakhs (previous year Rs, 419.74 lakhs). In the opinion of the Board of Directors, the assets have a value on realization at least equal to the amounts at which they are stated in the Balance Sheet.

Note 10

Details of loans given, investments made and guarantee given covered u/s 186 (4) of the Companies Act,2013 :

Note 11.

Previous year figures have been re-grouped/re-classified wherever considered necessary to compare with current year figures.

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Mar 31, 2015

Note 1.

We designs, manufactures and markets paper stationery products - exercise note books, long books, note pads, scrap books, drawing books, graph books - for students of all ages, as well as office/ corporate stationery products and printing, writing & packaging paper.

We have over 190 varieties of paper stationery products under the brand "Sundaram" which are very popular among the student communities and enjoy very high reputation in the market for its superb quality and durability.

Sundaram multi pap ltd was incorporated on 13 th March, 1995 with the Registrar of Companies, Maharashtra, at Mumbai and the Certificate of Commencement of Business was obtained on 10th April, 1995.

At the start of the Company in the year 1995, we had a capacity of 5 tons per day of conversion of paper into paper stationery, which was increased to 60 tons per day as of now which is also considering 75% utilisation of the machinery.

With the strong brand and market penetration we are present in pan Maharashtra and are number one brand among consumers today.

Note 2. SHARE CAPITAL

a) Rights,preferences and restrictions attached To Equity Shareholders:

The Company has only one class of Equity Shares having a face value Of Rs. 1/- Per Share. Each holder of Equity Shares is entitled to one vote per Equity Share. A member shall not have any Right to vote whilst any call or other sum shall be due and payable to the Company in respect of any of the shares of such member. All equity shares of the Company rank Pari Passu in all respects including the right to dividend. The dividend is proposed by the board Of directors and is subject to the approval of the members at the ensuing annual general meeting. The board of directors have a right to deduct from the dividend payable to any member any sum due from him to the Company.

In the event of winding-up, subject to the rights of holders of shares issued upon special terms and conditions, the holders of equity Shares shall be entitled to receive remaining assets, E any, in proportion to the number of shares held at the time Of commencement of winding-up.

The Shareholders have all other rights as available to equity shareholders as per the provisions of the Companies Act, 2013, read together with the memorandum of association and articles of association of the Company, as applicable.

b) The Company does not have any holding company or ultimate holding company. Promoter shareholding in the company including persons acting in concert with the promoters as on march 31, 2015 is 76,229,348 equity shares i.e. 35.36% of the equity share capital of the Company. Previous year march 31, 2014 is 117,718,959 equity shares i.e. 54.60 %.

c) The Company has alloted 143,737,182 (FV -Rs. equity shares by way of Bonus issue in the Financial Year 2012-13 in the ratio 1:2.

Note 3. Corporate Loan-State Bank Of India (SBI)

Secured primarily by first charge (Hypothecation and mortgage) over the Fixed assets (immovable and movable) of the company as well as personal guarantee of three directors and collaterally secured by extension of hypothecation charge over entire current assets of the company. Further, additional collateral security carrying first pari-passu charge in the form of pledge of promoter's shares to the extent of 100% of E-Class Education System Ltd. has also been given. The said Loan carries floating rate of interest ranging of 3% above base rate. The repayment of the Loan shall commence from September 2015 and to be fully repaid by March 2020.

Secured primarily by first pari passu charge over the entire current assets (present and future) of the company as well as personal guarantee of three directors and collaterally secured by second pari - passu charge (hypothecation and mortgage) over the fixed assets (movable and immovable) of the Company, with IDBI bank. Further, additional collateral security carrying first pari-passu charge in the form of pledge of promoter's shares to the extent of 100% of E-Class Education System Ltd. has also been given. The said Loans carries floating rate of interest ranging between 2.75% to 3% above base rate. The repayment of WCTL shall commence from September 2015 and to be fully repaid by September 2016. The repayment of FITL shall commence from December 2015 and to be fully repaid by March 2020.

Note 4

Contingent Liability: In the opinion of the Board of directors, the Company has no contingent liability (PY : Nil)

Note 5

In the opinion of the management, current assets, loans, advances and deposits are approximately of the value stated, if realized in the ordinary course of business. The provision of all known liabilities is adequate and not in excess of the amount reasonably necessary.

Note 6

Balances of certain trade receivables, trade payables and loans and advances are subject to confirmations / reconciliation and consequential adjustments, if any. The management does not expect any material variation affecting the current year's financial statements on account of such reconciliation / adjustments.

Note 7

Disclosure under MSMED Act, 2006:

The Company has not received any information from the "suppliers" regarding their status under the Micro Small and Medium Enterprises Development Act, 2006 and hence disclosures, if any, relating to the amounts as at year end together with interest paid / payable as required under the said act have not been given.

Note 8

Segment Reporting:

Primary Segment (Business):

The Company operates in single business segment of manufacture and sale of exercise note books and paper. Hence, further disclosure required as per Accounting Standard AS-17 "Segment Reporting" is not given.

Note 9

Related Party Disclosures:

a) List of related parties with whom the Company has entered into transactions during the year in the ordinary course of business:

Relationship Name Nature

Wholly owned E Class Education System Company Subsidiary Limited

Key Management Mr. Amrut P. Shah Chairman & Personnel (KMP) Managing Director

Mr. Shantilal P. Shah Whole-time Director

Mr. Hasmukh A. Gada Whole-time Director

Mr. Manik R. Makwana Company (Appointed w.e.f from Secretary 01/01/2015)

Enterprise over Sundaram Bio-Tech Pvt Ltd Company which KMP are able to exercise significant influence

Relatives of KMP Mr. Raichand P. Shah Brother of Amrut P. Shah & Shantilal P. Shah

Note 10:

Employee benefits

1. Defined contribution plans:

The Company makes Provident Fund contributions which are defined contribution plans, for qualifying employees. Under the Schemes, the Company is required to contribute a specified percentage of the payroll costs to fund the benefits. Provident fund contributions amounting to Rs. 12.66 Lacs (2014: Rs. 9.72 Lacs) have been charged to the Statement of Profit and Loss. The contributions payable to this plan by the Company is at rates specified in the rules of the scheme.

2. Defined benefit plans

The Company has a defined benefit gratuity plan. Every employee who has completed continuous service for five years or more gets a gratuity on departure at 15 days salary (last drawn salary) for each completed year of service. The scheme is funded with an insurance Company in the form of a qualifying insurance policy.

During the year gratuity benefit expense of Rs. 7 lacs recognised in the Statement of profit and loss. Due to non-availability of Actuarial valuation report, the charge for the year and liability as on balance sheet date were derived based on the past trend of attrition, increase in compensation cost and other relevant factors.

Note 12

Disclosure in respect of lease:

The Company has entered into operating lease arrangements for office premises. The leases are non-cancellable and are for a period of 1st Nov-2014 to 31st Oct 2017 years and may be renewed for a further period of 2 years based on mutual agreement of the parties. The lease agreements provide for an increase in the lease payments by 8 to10 % every year.

Amount in *

Future minimum lease payments 2015 2014

Not later than one year 1,020,000 Nil

Later than one year and not later 3,467,880 Nil than five years

Later than five years - Nil

Lease payments of Rs. 425,000 Nil (2014: Nil) recognised in the Statement of Profit and Loss.

Note 13

On 14th November 2014, the Board of Directors announced a plan to permanently close down Nagpur Paper Unit subject to the completion of necessary formalities. This is not a separate segment as per AS 17, Segment Reporting. The disposal is consistent with the Company's long-term strategy to focus its activities at Palghar unit. The Company is actively seeking a buyer for the plant & machineries and other fixed assets at Nagpur unit and hopes to complete the sale by the end of March 2016. At 31st March 2015, the carrying amount of the assets of the Nagpur unit was Rs. 3279.31 lakhs (previous year Rs. 6000.42 lakhs) and its liabilities were Rs. Nil lakhs (previous year Rs. Nil lakhs). In the opinion of the Board of Directors, the assets have a value on realization at least equal to the amounts at which they are states in the Balance Sheet.

Note 14

Previous year figures have been re-grouped/re-classified wherever considered necessary to compare with current year figures.

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Mar 31, 2014

Note 1

Contingent Liability:

Bank Guarantee given NIL (P.Y. Rs 100,000/-)

Note 2

In the opinion of the Management, Current Assets, Loans & Advances and Deposits are approximately of the value stated, if realized in the ordinary course of business. Te provision of all known liabilities is adequate and not in excess of the amount reasonably necessary.

Note 3

Balance of Trade Receivables, Trade Payables and Loans & Advances are subject to confirmations/ reconciliation and consequen- tial adjustments, if any. The Management does not expect any material diference afecting the current year''s financial statements on such reconciliation/ adjustments.

Note 4

Auditors Remuneration:

Particulars Current Year Previous Year

Audit fees 730,000/- 500,000/-

Tax Audit fees 210,000/- 170,000/-

Income Tax Matters 1,250,000/- 1,060,000/-

Others 16,068/- 298,642/-

Total 2,206,068/- 2,028,642/-

Note 5

Disclosure under MSMED Act, 2006:

The Company has not received any information from the "suppliers" regarding their status under the Micro Small and Medium Enterprises Development Act, 2006 and hence disclosures, if any, relating to the amounts as at year end together with interest paid / payable as required under the said act have not been given.

Note 6

Employee Benefits:

The principal Actuarial Valuation assumptions used as at the Balance Sheet date are as under:

1) Valuation Date : 31st March, 2013

2) Valuation Method : Projected Unit Credit Method

3) Mortality Rate : LIC (1994-96) Ultimate

4) Withdrawal Rate : 1% to 3% depending on age

5) Discount Rate : 8% p.a.

6) Salary Escalation : 8%

Note 7

Segment Reporting:

Primary Segment (Business):

The Company operates in single business segment of Manufacture and Sale of Exercise Note Books and Paper. Hence further disclosure required as per Accounting Standard AS-17 "Segment Reporting" is not given.

Note 8

During the year, operations of Paper Mill at Nagpur were temporarily suspended by the company.

Note 9

Previous year figures have been re-grouped/re-classified wherever considered necessary to compare with current year figures.

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Mar 31, 2013

Note 1

Contingent Liability:

Bank Guarantee given NIL (P.Y. Rs. 100,000/-)

Note 2

In the opinion of the Management, Current Assets, Loans & Advances and Deposits are approximately of the value stated, if realized in the ordinary course of business. The provision of all known liabilities is adequate and not in excess of the amount reasonably necessary.

Note 3

Balance of Trade Receivables, Trade Payables and Loans & Advances are subject to confirmations/ reconciliation and consequential adjustments, if any. The Management does not expect any material difference affecting the current year''s financial statements on such reconciliation/ adjustments.

Note 4

Disclosure under MSMED Act, 2006:

The Company has not received any information from the "suppliers" regarding their status under the Micro Small and Medium Enterprises Development Act, 2006 and hence disclosures, if any, relating to the amounts as at year end together with interest paid / payable as required under the said act have not been given.

Note 5

Employee Benefits:

The principal Actuarial Valuation assumptions used as at the Balance Sheet date are as under:

1) Valuation Date : 31st March, 2013

2) Valuation Method : Projected Unit Credit Method

3) Mortality Rate : LIC (1994-96) Ultimate

4) Withdrawal Rate : 1% to 3% depending on age

5) Discount Rate : 8% p.a.

6) Salary Escalation : 8%

Note 6

Segment Reporting:

Primary Segment (Business):

The Company operates in single business segment of Manufacture and Sale of Exercise Note Books and

Paper. Hence further disclosure required as per Accounting Standard AS-17 "Segment Reporting" is not given.

Note 7

Previous year figures have been re-grouped / re-classified wherever considered necessary to compare with current year figures.

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Mar 31, 2012

A) Terms and Rights attached to Equity Shareholders:

The Company has only one class of equity shares having a face value of Rs. 1/- per share. Each holder of equity shares is entitled to one vote per equity share. A member shall not have any right to vote whilst any call or other sum shall be due and payable to the Company in respect of any of the shares of such member. All equity shares of the Company rank pari passu in all respects including the right to dividend. The dividend is recommended by the Board of Directors and declared by the members at the ensuing Annual General Meeting. The Board of Directors have a right to deduct from the dividend payable to any member any sum due from him to the Company.

In the event of winding-up, subject to the rights of holders of shares issued upon special terms and conditions, the holders of equity shares shall be entitled to receive remaining assets, if any, in proportion to the number of shares held at the time of commencement of winding-up.

The Shareholders have all other rights as available to Equity Shareholders as per the provisions of the companies Act, 1956, read together with the Memorandum of Association and Articles of Association of the Company, as applicable.

b) The Company does not have any holding company or ultimate holding company. Promoter shareholding in the Company including persons acting in concert with the promoters as on March 31, 2012 is 44,428,998 equity shares i.e. 61.82 % of the equity share capital of the Company.Previous Year March 31, 2011 is 44,416,194 equity shares ie. 61.80%.

* Secured by mortgage of related immovable and movable assets of the company as well as personal gaurantee of three Directors, carrying floating rate of interest 4.25% above base rate repayable by June, 2013.

Secured by subservient charge over current and movable fixed assets of the company and personal gaurantee of three Directors carrying floating rate of interest of 3% above base rate repayable by March, 2015.

## Secured by pledge of equity shares of the company and personal guarantee of the promoter carrying interest rate of 13.75% repayable by April, 2013.

** Carrying interest ranging from 8.33% to 18% and to be repaid during the period from January, 2014 to February, 2015.

@ Carrying interest ranging from 9.46% to 16% and to be repaid during the period from December, 2012 to July, 2016. *** Repayment shall commence from the financial year 2015-16 upto 2024-25.

** Secured by charge over entire stock of raw material, stock-in-process, finished goods, stores & spares, goods-in- transit, receivables and other current asset of tire company on pari passu basis with other WC lender and personal gaurantee of three Directore carrying inteeest rate of 3.75% above base rate.

# Secured by first pari-passu charge on all the current assets of the company along with working oapital lendor and personal gaurantee of three Directors carrying inteeesf rate of 3% above base eate.

## Of these, Loan of Rs.174,953,898/- (P.Y. Rs. 50,000,000/-) is taken by pledge of promoters shares.

Notes 1

Contingent Liability:

Bank Guarantee given Rs. 100,000/- (P.Y.Rs. 100,000/-)

Notes 2

In the opinion of the management, current assets, loans, advances and deposits are approximately of the value stated, if realized in the ordinary course of business. The provision of all known liabilities is adequate and not in excess of the amount reasonably necessary.

Notes 3

Balances of certain trade receivables, trade payables and loans and advances are subject to confirmations / reconciliation and consequential adjustments, if any. The management does not expect any material difference affecting the current year's financial statements on such reconciliation / adjustments.

Notes 4

Disclosure under MSMED Act, 2006:

The Company has not received any information from the "suppliers" regarding their status under the Micro Small and Medium Enterprises Development Act, 2006 and hence disclosures, if any, relating to the amounts as at year end together with interest paid / payable as required under the said act have not been given.

Notes 5

Amortization of Brand:

The management has decided to revise the estimated period for amortization of balance value of Brand in next five years in view of modification of paper mills at Nagpur. Had the Company followed its earlier accounting policy, it would have amortised Rs.. 40,111,910/- out of which Rs.. 29,172,298/- pertains to current year. Due to such revision, amortization is short accounted by Rs.. 29,172,298/- resulting into increase in profit by Rs.. 29,172,298/- and value of Brand by Rs.. 29,172,298/-.

Notes 6

Segment Reporting:

Primary Segment (Business):

The Company operates in single business segment of manufacture and sale of exercise note books and paper. Hence further disclosure required as per Accounting Standard AS-17 "Segment Reporting" is not given.

Notes 7

After the close of the year on 31.03.2012,an Extra Ordinary General Meeting (EGM) was held on 01.04.2012 to approve the issue of bonus shares in the ratio of 2:1. As per the resolution, such bonus shares shall rank parri passu in all respectswith and carry the same rights as the existing fully paid up equity shares of the company and shall be entitled to participate fullyin any dividend(s) to be declared after the bonus shares are so allotted.

Notes 8

Previous year figures have been re-grouped/re-classified wherever considered necessary to compare with current year figures.

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Mar 31, 2011

I. Contingent Liability: Nil

ii. In the opinion of the management, current assets, loans, advances and deposits are approximately of the value stated, if realised in the ordinary course of business. The provision of all known liabilities is adequate and not in excess of the amount reasonably necessary.

iii. Balances of certain sundry debtors, sundry creditors, loans and advances are subject to confirmations/ reconciliation and consequential adjustments, if any. The management does not expect any material difference affecting the current year's financial statements on such reconciliation / adjustments.

iv. Managerial Remuneration:

Remuneration to managing director and whole time directors for the year is Rs. 1,02,00,000/- (Previous Year Rs. 1,02,00,000/-).

Since the remuneration paid to managerial personnel is within the limits prescribed under Schedule XIII, calculation of Managerial Remuneration is not given.

v. In view of revised estimate for the amount of amortization of Brand accounted on amalgamation of companies at Nagpur (Paper Mill), the Company has amortised Brand @15% instead of 30% as prescribed in the accounting policy. Due to such revision, amortisation is short accounted by Rs. 10,939,612/- resulting into increase in profit by Rs. 10,939,612/- and value of Brand by Rs. 10,939,612/-

vi. Disclosure under MSMED Act, 2006:

The Company has not received any information from the "suppliers" regarding their status under the Micro Small and Medium Enterprises Development Act, 2006 and hence disclosures, if any, relating To the amounts as at year end together with interest paid/payable as required under the said act have not been given.

vii. Employee Benefits:

The principal acturial valuation assumptions used as at the balance sheet date are asunder:

1) Valuation Date : 31stMarch, 2011

2) Valuation Method : Projected Unit Credit Method

3) Mortality Rate : LIC(1994-96) Ultimate

4) Withdrawal Rate : l%to3%dependingonage

5) Discount Rate : 8%p.a.

6) Salary Escalation : 8%

viii. Segment Reporting:

Primary Segment (Business):

The Company operates in single business segment of manufacture and sale of exercise note books and paper. Hence further disclosure required as per Accounting Standard AS-17 "Segment Reporting" is not given.

ix. Related Party Disclosures:

a) List of related parties with whom the company has entered into transactions during the yea the ordinary course of business:

Relationship Name Nature

Wholly owned Subsidiary Sundaram Edusys Private Limited Company

Key Management Personnel (KMP) Mr. Amrut P. Shah Chairman & Managing Director

Mr. Shantilal P. Shah Whole-time Director

Mr. Hasmukh A. Gada Whole-time Director

Relatives of KMP Mr. Raichand P. Shah Brother of Amrut RShah

Mrs. Nayna S. Shah Wife of Shantilal P. Shah

Enterprises over which relatives of KMP have significant influence

M/s. Salt Advertising Proprietor, Ms. Ridhi Gala

is daughter of CMD

x. Additional information pursuant to paragraphs 3,4C and 4D of part II of Schedule VI of the Companies Act, 1956.

a) Licensed Capacity : Not Available

b) Installed Capacity : 36,000Tons

xi. Previous year figures have been re-grouped/re-classified wherever considered necessary to compare with current year figures.

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Mar 31, 2010

I. Contingent Liability: Nil

ii. In the opinion of the management, current assets, loans, advances and deposits are approximately of the value stated, if realised in the ordinary course of business. The provision of all known liabilities is adequate and not in excess of the amount reasonably necessary.

iii. Balances of certain sundry debtors, sundry creditors, loans and advances are subject to confirmations/ reconciliation and consequential adjustments, if any. The management does not expect any material difference affecting the current years financial statements on such reconciliation/adjustments.

iv. Managerial Remuneration:

Remuneration to managing director and whole time directors for the year is Rs,1,02,00,000/- (Previous Year Rs, 54,00,000/-).

Since the remuneration paid to managerial personnel is within the limits prescribed under Schedule XIII, calculation of Managerial Remuneration is notgiven.

v. Auditors Remuneration: Amountin Rs,

Particulars Current Year Previous Year

Audit fees 330,900 239,720

Tax Audit fees 110,300 -

Income Tax Matters 280,000 1,015,788

Certification 38,605 -

Branch Audit Fees 15,000 -

Total 774,805 1,255,508

The company has provided for losses on these futures contracts on actual basis.

vii. Disclosure under MSMED Act, 2006:

The Company has not received any information from the"suppliers" regarding their status under the Micro Small and Medium Enterprises Development Act, 2006 and hence disclosures, if any, relating to the amounts as at year end together with interest paid / payable as required under the said act have not been given.

viii. Employee Benefits:

The principal acturial valuation assumptions used as at the balance sheet date areas under:

1)Valuation Date : 31stMarch,2010

2) Valuation Method : Projected Unit Credit Method

3) Mortality Rate : LIC (1994-96) Ultimate

4)Withdrawal Rate : 1%to3%dependingonage

5) Discount Rate : 8%p.a.

6) Salary Escalation : 8%

ix.Segment Reporting:

a) PrimarySegment(Business):

The Company operates in single business segment of manufacture of exercise note books and paper. Hence further disclosure required as per Accounting Standard AS-17"SegmentReporting"is not given.

x. DeferredTax:

In compliance with Accounting Standard (AS-22) relating to "Accounting for taxes on lncome"issue by the Institute of Chartered Accountants of India, the company has recognized in the Profit & Loss Account, the deferredtaxliabilityrelatedtofixedassetsforthecurrentyearof Rs, 38.31 Lacs(PreviousYear Rs, 76.24Lacs). xiii. IncomeTax:

Provision for current tax of previous year has been made under Minimum Alternate Tax (MAT) as per the provision of IncomeTax Act, 1961.

xi. Raw material consumption includes cost of trading sales of Rs, 181,514,309/-. (Previous Year Rs, 5,005,196/-

xii. Additional information pursuant to paragraphs 3,4C and 4D of part II of Schedule VI of the Companies Act, 1956.

a) Licensed Capacity : Not Available

b) Installed Capacity : 36,000Tons

c) Details of Production and Sales of Finished Goods:

Foreign offices: Company is having foreign branch office at Ethiopia. The branch office is operating as a liaison office for communication, negotiatuion, procuring orders from the foreign buyers, follow up for realization of export payments etc. Tran sactions and/ or purchases are not effected from the branch office.

xiii. previous year figures have been re-grouped/re-classified wherever considered necessary to compare with current year figures.