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Notes to Accounts of Yash Papers Ltd.

Mar 31, 2015

1. Term/rights attached to equity shares

The company has only one class of equity shares having a par value of Rs.10 per share. Each holder of equity shares is entitled to one vote per share. The company declares and pays dividends in Indian rupees. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting. In the event of liquidation of the company, the holders of equity shares will be entitled to receive remaining assets of the company, after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders.

2. Bonus Shares/Shares issued for consideration other than cash/Buy Back of shares during preceding five years: NIL

3. Shares held by holding/ultimate holding company and/or their subsidiary/associate: NIL

4. The CDR-EG in its meeting held on June 01,2012 has approved CDR Package (cut off date being July 01,2011) of the company. Oriental Bank of Commerce (OBC) has been appointed as Monitoring Institution (MI). Final Letter of Approval (LOA) has been issued by the CDR cell to all the lenders with a copy to the company on June 08, 2012. Individual Sanction Letter in line with LOA has been received from all the banks. Master Restructuring Agreement (MRA) has been executed on October 05, 2012 and Joint consortium documents have been executed on November 20, 2012. CDR has been implemented successfully.

5. All the existing term loans, fresh term loans and FITL are secured by pari-passu first charge on all the fixed assets of the company and second pari-passu charge on the current assets of the company.

Pledge of 99.92% equity share of the Company held by the promoters.

Corporate Guarantee of Yash Agro Products Ltd. & Satori Global Limited, the associates.

Personal Guarantee of promoter directors of the company Mr Ved Krishna and Mrs. Manjula Jhunjhunwala.

6. These Loans are repayable over a period of 8 years in structured thirty two quarterly instalment commencing from September 2013 to June 2021.

7. Working capital facilities are secured by pari-passu first charge on all the current assets of the company and second pari-passu charge on fixed assets of the company.

8. The company has requested confirmation from Suppliers regarding their registration (filling of Memorandum) under the Micro, Small and Medium Enterprises Development Act, 2006 (the Act). According to the information available with the company there was no amount(principal and/or interest) due to any micro/small enterprises(SME as defined in the Act) as at the end of the year. There is no delay in payment to SME during the year. No interest was paid/payable on account of delay in payment to SME during the year in terms of Section 16 of the Act.

9. No amounts is due for payment to Investor Education & Protection Fund.

10. The related party disclosure in accordance with AS 18 ''Related Party Disclosures'' issued by ICAI, is given below:

a. List of related parties with whom transactions have taken place during the Year:

i. Key management personnel and relatives:

(a) Mr Ved Krishna, Managing Director (Promoter)

(b) Mrs Manjula Jhunjhunwala, Director (Promoter)

(c) Mr N. K. Agarwal, Director Works

(d) Mr R. N. Chakraborty, Director (resigned with effect from 28.06.2014)

(e) Mr Nikhil Gupta, CFO (from 15.05.2014 to 13.03.2015)

(f) Mr Girish Kumar, Wholetime Director & CEO (04.07.2014 to 10.11.2014 & CEO from 15.05.2014 to 10.11.2014)

(g) M/s Ved Krishna, HUF

ii. Entities over which KMP or relatives of KMP are able to exercise significant influence:

(a) Yash Agro Products Limited

(b) Satori Global Limited

(c) Yash Skills Limited

(d) M/s Jingle Bell Nursery School Society

(e) M/s K K Charitable Foundation

11. CONTINGENT LIABILITIES Amount in Rs.

Claim against the company not acknowledged as debt (net of amounts paid): 2014-15 2013-14

* Excise duty 30,128,372 30,128,372

* Trade Tax NIL 270,957

* Income Tax 2,543,300 2,543,300

* Others 24,954,695 24,048,163

Guarantee given by Banks 5,700,000 5,400,000

Letter of Credits 4,015,484 23,825,200

12. Above claims are likely to be decided in favour of the company, hence not provided for.

13.. As the Company''s business activity falls within a single segment viz. ''Paper, the disclosure requirements of Accounting Standard 17 "Segment Reporting" is not applicable.

14. A sum of Rs.15,47,59,000 had been recognised as income accrued during the period from April, 2007 to December, 2012 based on the Emission Reduction Purchase Agreement (ERPA) with Belgian State for sale of CERs (Certified Emission Reductions) generated from the 6 MW Co-generation Power Plant Project registered as CDM (Clean Development Mechanism) with UNFCCC (The United Nations Framework Convention on Climate Change). The Belgian State has terminated the ERPA due to non delivery of CERs. Consequently, the receivable aggregating to Rs.15,47,59,000 as recognised in earlier years in this regard has been written off and the same has been disclosed as "Extraordinary Item" in the Statement of Profit and Loss.

15. Disclosure in terms of AS 28 (Impairment of Assets)

Recoverable amount of the assets or the recoverable amount of the cash generating unit to which the asset belongs is not less than the carrying amount; hence no provision is required on account of impairment of assets as on the date of Balance Sheet.

16. Disclosure in terms of AS 29 (Provisions, Contingent Liabilities and Contingent Assets)

The Company has recognised contingent liabilities as disclosed in Note no 36 above and as such no provision is required to be made. No provision was outstanding as at the beginning and at the end of the period.

17. Confirmation of balances with sundry debtors/creditors, loans and advances and other parties have not been received in few cases.

18. Sundry Debtors include Rs.195,48,615 outstanding for more than two years and under litigation. Management is confident that entire amount is realisable hence the same has been considered as good and no provision is required.

19. The depreciation had been charged on Straight Line Method (SLM Method) in accordance with the then applicable Schedule XIV to the Companies Act, 1956 upto financial year 2013-14. Consequent upon Schedule II being specified in the Companies Act, 2013 with effect from 01.04.2014, the depreciation for the current year has been charged on SLM Method in accordance with the useful life provided in the aforesaid Schedule II. In terms of Note no. 7(b) of Schedule II, Rs.39,61,725 (net of Deferred Tax Rs.20,40,000) being the carrying amount of the assets after retaining the residual value has been charged against the opening balance in retained earnings (Surplus in the Statement of Profit and Loss) where useful life of an assets is Nil. Had there been no change, depreciation for the year and loss for the year had been higher by Rs.2,52,86,852.

20. The Company has not accepted any deposit under Section 73 or Section 76 of the Companies Act, 2013 read with the Companies (Acceptance of Deposit) Rules, 2014 during the year. However, the Company had accepted deposits in earlier years in compliance of provisions of Section 58A of the Companies Act, 1956 read with the Companies (Acceptance of Deposit) Rules, 1975 which, pursuant to Section 74 (1)(b) of the Companies Act, 2013, need to be repaid within one year from April 1,2014 or from the date on which such payments are due, whichever is earlier. The company has paid the deposits matured during the year. The Company has applied under Section 74(2) of the Companies Act, 2013 to the Company Law Board, New Delhi on March 30, 2015 in the prescribed Form No.7 for extension of repayment period in respect of unpaid deposits yet to be matured as at 31.03.2015. The application has been admitted by the Hon''ble Company Law Board, New Delhi on 31.03.2015, for the necessary direction.

21. Previous year''s figures have been reclassified / regrouped wherever required in order to make them comparable with those of current year.


Mar 31, 2014

1. The related party disclosure in accordance with AS 18 ''Related Party Disclosures'' issued by ICAI, is given below: a. List of related parties with whom transactions have taken place during the Year: i. Key management personnel and relatives:

Mr. Ved Krishna (Managing Director), Mrs. Manjula Jhunjhunwala (Director), Mr. Narendra Agarwal (Director Works), Mr. R. N. Chakraborty (Director) and M/s Ved Krishna H.U.F.

ii. Entities & Associates

Yash Agro Products Limited, Satori Global Limited and M/s Jingle Bell Nursery School Society

2. CONTINGENT LIABILITIES

Amount in Rs.

Particulars 2013-14 2012-13 Claim against the company not acknowledged as debt (refer Note 36.1)

- Excise duty 30,128,372 35,834,606

- Trade Tax 270,957 138,209

- Income Tax 2,543,300 43,949

- Others 24,048,163 24,955,000

Guarantee given by Banks 5,400,000 5,000,000

Letter of Credits 23,825,200 18,877,395

3. As the Company''s business activity falls within a single segment viz. ''Paper'', the disclosure requirements of Accounting Standard 17 "Segment Reporting" is not applicable.

4. A sum of Rs.15,47,59,000 has been recognised as income accrued for the period from April, 2007 to December, 2012 based on the Emission Reduction Purchase Agreement (ERPA) with Belgian State for sale of CERs (Certified Emission Reductions) generated from the 6 MW Co-generation Power Plant Project registered as CDM (Clean Development Mechanism) with UNFCCC (The United Nations Framework Convention on Climate Change). Total amount receivable as at the year end Rs.15,47,59,000 has been disclosed as Other Current Assets. Though The accounting treatment is not in conformity with the "Guidance Note on Accounting of self-generated Certified Emission Reductions (CERs)" issued by the Institute of Chartered Accountants of India (the Guidance Note), made effective from accounting periods beginning on or after April 01, 2012, but the revenue has been recognised in the accounts on the basis of ERPA for the period covered in ERPA only. The audit for the period April,2007 to August, 2008 has already been completed and the no. of CER''s accounted for in the books of accounts for the period have been verified by the UNFCCC appointed auditors. We are expecting to the receipt of CER''s within next quarter.

5. DISCLOSURE IN TERMS OF AS 28 (IMPAIRMENT OF ASSETS)

Recoverable amount of the assets or the recoverable amount of the cash generating unit to which the asset belongs is not less than the carrying amount; hence no provision is required on account of impairment of assets as on the date of Balance Sheet.

6. DISCLOSURE IN TERMS OF AS 29 (PROVISIONS, CONTINGENT LIABILITIES AND CONTINGENT ASSETS)

The Company has recognised contingent liabilities as disclosed in Note no 36 above and as such no provision is required to be made. No provision was outstanding as at the beginning and at the end of the period.

7. Confirmation of balances with sundry debtors/creditors, loans and advances and other parties have not been received in few cases.

8. Figures for the previous year figures have been reclassified / regrouped wherever required. Figures in brackets pertains to previous year.


Mar 31, 2013

1. The related party disclosure in accordance with AS 18 ''Related Party Disclosures'' issued by ICAI, is given below: a. List of related parties with whom transactions have taken place during the Year: i. Key management personnel and relatives:

Mr. Ved Krishna (Managing Director), Mrs. Manjula Jhunjhunwala (Director) and Mr. Narendra Agrawal (Director Works) and

Mr. R. N. Chakraborty (Director)

ii. Entities & Associates

Megha Agro Products Limited, Satori Global Limited and M/s Jingle Bell Nursery School Society

2. Contingent Liabilities (Amount in Rs.)

Particulars 2011-12

Claim against the company not acknowledged as debt

Excise duty 35,834,606 35,834,606

Trade Tax 138,209 138,209

Income Tax 43,949 43,949

Others 24,955,000 24,955,000

Guarantee given by Banks 5,000,000 2,013,000

3. As the Company''s business activity falls within a single segment viz. ''Paper, the disclosure requirements of Accounting Standard 17 "Segment Reporting” is not applicable.

4. A sum of Rs.256,30,000 (Rs.343,95,000) has been recognised as income accrued during the year (for the period from April 2012 to December, 2012) based on the Emission Reduction Purchase Agreement (ERPA) with Belgian State for sale of CERs (Certified Emission Reductions) generated from the 6 MW Co-generation Power Plant Project registered as CDM (Clean Develop- ment Mechanism) with UNFCCC (The United Nations Framework Convention on Climate Change). Total amount receivable as at the year end Rs. 1547,59,000 has been disclosed as Other Current Assets. Though The accounting treatment is not in conformity with the "Guidance Note on Accounting of self-generated Certified Emission Reductions (CERs)” issued by the Institute of Chartered Accountants of India (the Guidance Note), made effective from accounting periods beginning on or after April 01, 2012, but the revenue has been recognised in the accounts on the basis of ERPA for the period covered in ERPA only.

5. Disclosure in terms of AS 28 (Impairment of Assets)

Recoverable amount of the assets or the recoverable amount of the cash generating unit to which the asset belongs is not less than the carrying amount; hence no provision is required on account of impairment of assets as on the date of Balance Sheet.

6. Disclosure in terms of AS 29 (Provisions, Contingent Liabilities and Contingent Assets)

The Company has recognised contingent liabilities as disclosed in Note no 37 above and as such no provision is required to be made. No provision was outstanding as at the beginning and at the end of the period.

7. Income tax assessment has been completed up to the assessment year 2010-11.

8. Confirmation of balances with sundry debtors/creditors, loans and advances and other parties have not been received in few cases.

9. Figures for the previous year figures have been reclassified / regrouped wherever required. Figures in brackets pertains to previous year.


Mar 31, 2012

1.1 Term/rights attached to equity shares

The Company has only one class of equity shares having a par value of Rs. 10 per share. Each holder of equity shares is entitled to one vote per share. The Company declares and pays dividends in Indian rupees. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting.

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

1.2 Bonus Shares/Shares for consideration other than cash issued & Buy Back of shares during preceding five years: NIL

1.3 Shares held by holding/ultimate holding company and/or their subsidiary/associate: NIL

2.1 37,00,000 Shares alloted against Share Application Money during the year 2012-13 (on 24.05.2012)

2.2 The Company was having sufficient authorised capital to cover the share capital amount resulting from the allotment of shares out of the share application money out standing as on 31.03.2012. There was no delay in issuing the shares against the said application amount.

3.1 Continuing default as on the Balance Sheet date:

There has been default in repayment of term loans, interest thereon and interest on working capital loans to consortium of banks due to financial crisis. The detail of defaults/irregularities for the year and as on 31st March, 2012 in terms of sanction(s) is as under:

3.2 Subsequent to Balance Sheet date, the Empowered Group of Corporate Debt Restructuring Cell (CDR-EG) has approved the final restructuring package (CDR Package) of the Company; the details thereof is as under:

The CDR-EG in its meeting held on June 01, 2012 has approved CDR Package of the Company. Oriental Bank of Commerce (OBC) has been appointed as Monitoring Institution (MI). Final Letter of Approval (LOA) has been issued by the CDR cell to all the lenders with a copy to the Company on June 08, 2012. Individual Sanction Letter in line with LOA has been received from Oriental Bank of Commerce & United Bank of India and is pending from State Bank of India, Union Bank of India & UCO Bank.

The salient features of the CDR Package are as under:

Cut-off Date (COD) is July 01, 2011

Holding on operation (i.e. no debit/recovery of dues by lenders) & continuance of working capital limits at existing sanctioned level till implementation of CDR Package.

Moratorium period of two years in respect of existing term loan of 57.06 Crores (as on 30.06.2011) from COD & repayment thereof in thirty two structured quarterly instalments commencing from September 2013 till June 2021.

Funding of Interest on existing term loan @ 14.25% (simple rate of interest) for twenty four months from COD (i.e. FITL) & repayment thereof in thirty two structured quarterly instalments commencing from September 2013 till June 2021 (Rate of interest for FITL @ 11.50 p.a.).

Sanction of fresh term loan of Rs 8.33 Crores.

Additional fund based working capital limit of Rs 17.28 Crores.

Additional non-fund based limit of Rs 2.34 Crores.

3.3 The accounting of interest for the period from July 2011 to Mar 2012 and classification of loans into Long term & current maturities has been done in terms of the said CDR Package.

3.4 All the existing term loans, fresh term loans and FITL are secured by pari-passu first charge on all the fixed assets of the Company and second pari-passu charge on the current assets of the Company.

Pledge of 100% equity share of the Company held by the promoters.

Corporate Guarantee of Megha Agro Products Ltd & Satori Global Ltd., the associates.

Personal Guarantee of promoter directors of the Company Mr Ved Krishna and Mrs. Manjula Jhunjhunwala.

3.5 These Loans are repayable over a period of 8 years in structured thirty two quarterly instalment commencing from September 2013 to June 2021.

3.6 Secured against Vehicle financed.

4.1 Working capital facilities are secured by pari-passu first charge on all the current assets of the Company and second pari-passu charge on fixed assets of the Company.

4.2 Working capital facilities are also covered in CDR. Please refer Note 5.1 and 5.2 in this regard.

5.1 The Company has requested confirmation from Suppliers regarding their registration (filling of Memorandum) under the Micro, Small and Medium Enterprises Development Act, 2006 (the Act). According to the information available with the Company there was no amount(principal and/or interest) due to any micro/small enterprises(SME as defined in the Act) as at the end of the year. There is no delay in payment to SME during the year. No interest was paid/payable on account of delay in payment to SME during the year in terms of Section 16 of the Act.

6.1 There are no amounts due for payment to Investor Education & Protection Fund as at the year end.

6.2 Continuing default as on the Balance Sheet date

7. THE RELATED PARTY DISCLOSURE IN ACCORDANCE WITH AS 18 'RELATED PARTY DISCLOSURES' ISSUED BY ICAI, IS GIVEN BELOW: a. List of related parties with whom transactions have taken place during the Year:

i. Key management personnel and relatives:

Mr. Ved Krishna (Managing Director), Mr. R.N. Chakraborty (Director), Mrs. Manjula Jhunjhunwala (Director)

ii. Entities & Associates

Megha Agro Products Limited, Satori Global Limited and M/s Jingle Bell Nursery School Society.

8. As the Company's business activity falls within a single segment viz. 'Paper', the disclosure requirements of Accounting Standard 17 "Segment Reporting" issued by the Institute of Chartered Accountants of India is not applicable.

9. A sum of Rs.343,95,000 (Rs.306,03,000) has been recognised as income accrued for the year ended 31st March, 2012 based on Agreement (Emission Reduction Purchase Agreement) with Belgium State for sale of CERs (Certified Emission Reductions) generated from the 6 MW Co-generation Power Plant Project registered as CDM (Clean Development Mechanism) with UNFCCC (The United Nations Framework Convention on Climate Change). Total amount receivable as at the year end Rs. 1291,29,000 has been disclosed as Other Current Assets.

10. DISCLOSURE IN TERMS OF AS 28 (IMPAIRMENT OF ASSETS)

Recoverable amount of the assets or the recoverable amount of the cash generating unit to which the asset belongs is not less than the carrying amount; hence no provision is required on account of impairment of assets as on the date of Balance Sheet.

11. DISCLOSURE IN TERMS OF AS 29 (PROVISIONS, CONTINGENT LIABILITIES AND CONTINGENT ASSETS)

The Company has recognised contingent liabilities as disclosed in Note no 37 above and as such no provision is required to be made. No provision was outstanding as at the beginning and at the end of the period.

12. Income tax assessment has been completed upto the assessment year 2009-10.

13. Confirmation of balances with sundry debtors/creditors, loans and advances and other parties have not been received in few cases.

14. The Financial Statements for the year ended 31st March, 2011 had been prepared as per the then applicable, pre-revised Schedule VI to the Companies Act, 1956. Consequent to the notification of revised Schedule VI under the Companies Act, 1956 the financial statements for the year ended 31st March, 2012 are prepared as per revised Schedule VI. Accordingly, the previous year figures have also been reclassified to conform to this year's classification. Figures in brackets pertains to previous year.

 
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