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Notes to Accounts of Century Plyboards (I) Ltd.

Mar 31, 2017

1. Significant Accounting Judgments, Estimates and Assumptions

The preparation of the financial statements requires management to make judgments, estimates and assumptions that affect the reported amounts of revenues, expenses, assets and liabilities, and the accompanying disclosures, and the disclosure of contingent liabilities. Uncertainty about these assumptions and estimates could result in outcomes that require a material adjustment to the carrying amount of assets or liabilities affected in future periods.

(i) Judgments

The management has made the following judgments, which have the most significant effect on the amounts recognized in the financial statements:

Liability towards decommissioning cost for land lease not recognized based on management''s decision that the Company will leave the leased property in as if condition at the expiry of the term of lease. As per the terms of the agreement, in such case the Company is not obligated for any decommissioning or site restoration activity.

(ii) Estimates and Assumptions

The key assumptions concerning the future and other key sources of estimation uncertainty at the reporting date, that have

a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year, are described below. The Company based its assumptions and estimates on parameters available when the financial statements were prepared. Existing circumstances and assumptions about future developments, however, may change due to market changes or circumstances arising that are beyond the control of the Company. Such changes are reflected in the assumptions when they occur.

a) Defined Benefit Plans

The cost of the employment benefits such as gratuity, leave and provident fund obligation are determined using actuarial valuations. An actuarial valuation involves making various assumptions that may differ from actual developments in the future. These include the determination of the discount rate, future salary increases and mortality rates. Due to the complexities involved in the valuation and its long-term nature, a defined benefit obligation is highly sensitive to changes in these assumptions. All assumptions are reviewed at each reporting date.

The parameter most subject to change is the discount rate. In determining the appropriate discount rate for plans operated in India, the management considers the interest rates of government bonds.

The mortality rate is based on publicly available mortality tables for the specific countries. Those mortality tables tend to change only at interval in response to demographic changes. Future salary increases and gratuity increases are based on expected future inflation rates.

Further details about gratuity obligations are given in Note 35

b) Taxes

Deferred tax assets are recognized for unused tax credits (MAT Credit Entitlement) to the extent that it is probable that taxable profit will be available against which the losses and tax credits can be utilized. Significant management judgments is required to determine the amount of deferred tax assets that can be recognized, based upon the likely timing and the level of future taxable profits together with future tax planning strategies.

The company has H5,204.95 Lac (31st March, 2016: H5,046.43 Lac, 1st April, 2015: H4,402.73 Lac) of tax credits carried forward.

c) Expected Credit Loss Model

The Company applies expected credit loss (ECL) model for measurement and recognition of impairment loss on the Financial Assets. The Company follows ''simplified approach'' for recognition of impairment loss allowance on trade receivables. As a practical expedient, the Company uses historically observed default rates over the expected life of the trade receivables and is adjusted for forward-looking estimates to determine impairment loss allowance on portfolio of its trade receivables.

*The Company enjoys tax holiday benefit in respect of its certain units under section 80IA and 80IE of the Income Tax Act, 1961 (Act) and accordingly at present is paying Minimum Alternative Tax (MAT) under Section 115JB of the Act. Utilization of such MAT credit would commence immediately upon completion of the Tax holiday period and the management is certain that there will be sufficient taxable profit to utilize the MAT credit recognized in the books of accounts.

b) Terms/Rights attached to the Equity Shares

The Company has only one class of equity shares having par value of H1/- 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 shareholders in the Annual General Meeting, except in case of interim dividend.

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 in proportion to their shareholdings.

c) The Company does not have any Holding/ Ultimate Holding Company. As such, no shares are held by them or their Subsidiaries/ Associates

As per records of the Company, including its register of members as at 31st March, 2017, the above shareholding represents legal ownerships of shares.

e) There are NIL (Previous year NIL) shares reserved for issue under option and contracts / commitment for the sale of shares/ disinvestment.

f) During the period of five years immediately preceding the reporting date:

i. No shares were issued for consideration other than cash

ii. No bonus shares were issued

iii. No shares were bought back

g) There are NIL (Previous year NIL) securities convertible into Equity/ Preference Shares.

h) There are NIL (Previous year NIL) calls unpaid including calls unpaid by Directors and Officers as on the balance sheet date.

i) No shares were forfeited during the year or during the previous year.138000 equity shares of H10/-each (post split 1380000 equity shares of H1 each) on which H3.54 Lac had been paid up, were forfeited in the year 2001-2002

Amalgamation Reserve:- This reserve was created on amalgamation of Shyam Century Ferrous Limited with the Company during the financial year 2005-06

Securities Premium Reserve:- This reserve had been created on issue of shares by way of public issue and right issue

General Reserve:- General reserve is created from time to time by way of transfer profits from retained earnings for appropriation purpose. General reserve is created by a transfer from one component to equity to another and is not an item of other comprehensive income.

Capital Redemption Reserve:- This reserve was created for redemption of preference shares by company in FY 2012-13

Notes:-

(a) Term Loan of RS,1,680.49 Lac (31st March, 2016: RS,3,925.42 Lac, 1st April, 2015: RS,6,163.62 Lac) from a bank carries interest @ MCLR plus 0.50 % p.a. presently 9.60%p.a (31st March, 2016: 9.80% p.a., 1st April, 2015: 10.50% p.a.). The loan is repayable in 3 equal quarterly installments of RS,562.50 Lac each by 31st December, 2017 and is secured by first charge over all fixed assets of plywood units at Mirza, Assam ; Bishnupur, West Bengal; Taraori, Haryana; and Chinnappolapuram, Gummidipoondi, Tamil Nadu ; and by way of a second charge on entire current assets(both present and future) of the Plywood Divisions of the Company. The above loan is further secured by personal guarantees of three directors of the Company.

(b) Foreign currency term loan of H NIL (31st March, 2016: RS,1,591.92 Lac, 1st April, 2015: RS,3,004.32 Lac) carries interest (31st March, 2016: 4.07% p.a., 1st April, 2015: 4.07% p.a.) .The loan has been fully repaid during the year.

2. Borrowings (At Amortized Cost) (contd.)

(c) Foreign currency term loan of RS,1,604.79 Lac (31st March, 2016, RS,2,188.89 Lac, 1st April, 2015, RS,2,581.84 Lac carries interest @6 months LIBOR 2.00% p.a. The loan is repayable in 12 equal quarterly installments by 31st March, 2020 and is secured / to be secured by first charge on all the fixed assets pertaining to the Plywood Unit at Bhachau, Gujarat and second charge on all the current assets of the Plywood Divisions of the Company on pari passu basis with other term lenders.

(d) Foreign currency term loan of RS,3,503.36 Lac (31st March, 2016: RS,2,309.19 Lac, 1st April, 2015:RS, NIL) carries interest @ 6 months LIBOR 2.00 % p.a. The loan is repayable in 25 equal quarterly installments commencing from 31st March, 2017 by 31st March, 2023 and is secured/to be secured by first charge on all the fixed assets pertaining to the Particle Board Unit at village Chinnappolapuram, Gummidipoondi, Tamil Nadu and by second charge on all the current assets of the Plywood Divisions of the Company on pari passu basis with other term lenders.

(e) Foreign currency term loan of RS,4,658.39 Lac (31st March, 2016: RS,NIL, 1st April, 2015: RS,NIL) carries interest @ 6 months LIBOR 2.00 % p.a. (31st March, 2016: 2.00% p.a.) The Loan is repayable in 25 equal quarterly installments commencing from 31st March, 2017 by 31st March, 2023 and is secured by 1st charge on proposed Corporate House at Taratala, Kolkata, West Bengal and by 2nd charge on all the current assets of the plywood division of the company on pari passu basis with other term lenders.

(f) Term loan of RS,6,580.53 Lac (31st March, 2016: RS, NIL, 1st April, 2015: RS, NIL) carries interest @MCLR presently 8.30% p.a. The Loan is repayable in 24 equal quarterly installments commencing from 31st March, 2018 by 31st December, 2023 and is secured/to be secured by 1st charge overall fixed assets of MDF Unit at Hoshiarpur, Punjab and by 2nd charge on all the current assets of the said unit.

(g) Finance lease obligations are secured by hypothecation of the assets purchased there against and carrying interest between 9.64% p.a. to 11.% p.a. (31st March, 2016: 9.64% to 11.25% p.a., 1st April, 2015: 9.64% to 11.25% p.a.).

The deferred revenue relates to the asset related government grant received in earlier years, the same has been accounted for as deferred revenue and proportionately adjusted with depreciation.

Notes:-

a) Cash Credit, Short Term Loan and Buyer''s Credit from banks amounting to RS,32,033.90 Lac (31.3.2016 RS,34,096.50 Lac & 1.4.2015 RS,37,439.94 Lac) are secured / to be secured by way of first charge on current assets (both present and future) of the company and by way of second charge on the fixed assets of the plywood units at Mirza, Assam; Bishnupur, West Bengal; Taraori, Haryana; Chinnapploapuram, Gummidipoondi,Tamil Nadu and Bhachau, Gujarat. The cash credits, short term loan and buyer''s credits are also secured by personal guarantees of three directors of the Company.

b) The cash credit is repayable on demand and carries interest @ 9.85% to 12.00% (31.3.2016 9.85% to 10.95% 1.4.2015 11% to 11.50%) p.a.

c) Buyers credit carries interest @ LIBOR plus 0.34% (2015-16 0.34%, 1.4.2015 0.34%) to 1.20% (2015-16 1.20%, 1.4.2015 1.25%) and is repayable in 90-180 days.

d) Rate of Interest for Body Corporate Loan is 9.25% p.a.

e) Rate of Interest for Commercial Paper is 6.75% p.a.

f) Rate of Interest for Packing Credit is 6.00% to 6.05% p.a.

Trade payables and acceptances are non-interest bearing and are normally settled on 30 day terms. For terms and conditions with related parties, Refer Note 44

E) Footnotes to the above reconciliation

a. Investments at Fair Value (FVTPL financial assets)

Under Indian GAAP, the Company accounted for investments in unquoted and quoted equity shares as investment measured at cost less provision for other than temporary diminution in the value of investments. Under Ind AS, the Company has designated such investments except for Investment in Subsidiaries as FVTPL investments. Ind AS requires FVTPL investments to be measured at fair value. At the date of transition to Ind AS and as on 31st March, 2016, difference between the instrument''s fair value and Indian GAAP carrying amount has been recognized in the Retained earnings and Statement of Profit and Loss net of related deferred taxes. Investment in Subsidiaries continues to be measured at cost.

b. Deferred Tax

Indian GAAP requires deferred tax accounting using the income statement approach, which focuses on differences between taxable profits and accounting profits for the period. Ind AS 12 requires entities to account for deferred taxes using the balance sheet approach, which focuses on temporary differences between the carrying amount of an asset or liability in the balance sheet and its tax base. The application of Ind AS 12 approach has resulted in recognition of deferred tax on new temporary differences which was not required under Indian GAAP.

In addition, the various transitional adjustments lead to temporary differences. Deferred tax adjustments are recognized in correlation to the underlying transaction either in retained earnings or a separate component of equity.

c. Dividend

Under Indian GAAP, proposed dividends including Dividend Distribution Taxes (DDT) are recognized as a liability in the period to which they relate, irrespective of when they are declared. Under Ind AS, a proposed dividend is recognized as a liability in the period in which it is declared by the Company (usually when approved by shareholders in a general meeting) or paid.

In case of the Company, the declaration of dividend occurs after period end. Therefore, the liability recorded for dividend has been derecognized against retained earnings on 1st April, 2015 and recognized in year ended 31st March, 2016.

d. Re-Classifications

The Company has done the following reclassifications as per the requirements of Ind AS:

i) Assets / liabilities which do not meet the definition of financial asset / financial liability have been reclassified to other asset / liability.

ii) The Company has re-classified leasehold land in JJP and Sonai from Property Plant & Equipment to prepayments and leasehold land in Taratala transferred from Capital work in progress to prepayments.

iii) Re-Measurement gain/loss on employee defined benefit plans are re-classified from statement of profit and loss to OCI.

iv) The Company has re-classified unpaid dividend balance from cash and cash equivalents to other bank balances.

v) Excise duty on sales was earlier netted off with Sales, has now been re-classified to other expenses.

vi) Trade deposits where there is no unconditional right to defer the payment has been disclosed under current financial liability.

vii) MAT credit entitlement has been transferred to deferred tax asset.

e. Long Term Borrowings

Under Indian GAAP, the Company accounted for long term borrowings measured at transaction value. Under Ind AS, the Company has to recognize the long term borrowings at amortized cost using effective interest.

f. Leases

Under Ind AS, where the payments to the less or are structured to increase in line with expected general inflation to compensate for the less or’s expected inflationary cost increases, straight lining of lease is not required. The same was required under AS-19.

Company has initially recognized security deposit paid to the less or at fair value and subsequently at amortized cost as per Ind AS 109.

g. Expected Credit Loss Model

Ind AS 109 requires to recognize loss allowances on trade receivable and other financial assets of the Company, at an amount equal to the lifetime expected credit loss or the 12 month expected credit loss based on the increase in the credit risk.

h. Deferred Revenue

Under Indian GAAP, the Company credited capital investment subsidy in capital reserve. Under Ind AS, the Company has to recognize the capital subsidy as deferred revenue.

i. Other Comprehensive Income

Under Indian GAAP, the Company has not presented other comprehensive income (OCI) separately. Hence, it has reconciled Indian GAAP profit or loss to profit or loss as per Ind AS. Further, Indian GAAP profit or loss is reconciled to total comprehensive income as per Ind AS.

j. Ind AS 101 Exemptions Applied

Ind AS 101 allows first-time adopters certain exemptions from the retrospective application of certain requirements under Ind AS. Exemptions applied by Company are detailed here under:

(i) The Company has applied exemptions for Ind AS 103 Business Combinations and consequently none of the business combinations prior to date of transition i.e. 1st April, 2015 has been reinstated.

(ii) With regard to Property Plant and Equipment the Company has elected to continue with carrying value as recognized in its Indian GAAP Financial Statements as deemed cost at the transition date, viz., 1st April, 2015.

(iii) The Company has elected to continue with the carrying value of investment in subsidiaries/associates as recognized in its Indian GAAP financial statement as deemed cost at the transition date, viz., 1st April, 2015.

3. Gratuity and Other Post Employment Benefit Plans

The Company has a defined benefit gratuity plan. Every employee who has completed five years or more of service is entitled to Gratuity on terms not less favorable than the provisions of The Payment of Gratuity Act, 1972. The scheme is funded with an insurance company.

The Company also extends benefit of compensated absences to the employees, whereby they are eligible to carry forward their entitlement of earned leave for encashment upon retirement/separation. This is an unfunded plan.

The following tables summaries the components of net benefit expense recognized in the statement of profit and loss and the funded status and amounts recognized in the balance sheet for the Post - retirement benefit plans.

4. Leases

(a) Operating Lease:

Certain office premises, depots, showrooms, etc. are obtained on operating lease. The lease terms are for 1-3 years and are renewable for further period either mutually or at the option of the Company. There are neither any restrictions imposed nor any escalation clause in lease arrangements. There are no subleases. The leases are cancellable.

(b) Finance Lease:

Property, plant and equipment include certain vehicles obtained on finance lease. There is no escalation clause in the lease agreement .There are no restrictions imposed by lease arrangements. The year-wise break-up and future obligation towards minimum lease payments of H1,268.74 Lac (31st March, 2016: H1,598.65 Lac, 1st April, 2015: H1,038.71 Lac) consisting of present value of lease payments of H1,159.53 Lac (31st March, 2016: H1,410.33 Lac, 1st April, 2015: H873.49 Lac) and financial charges H109.21 Lac (31st March, 2016: H188.31 Lac, 1st April, 2015: H165.22 Lac) under the respective agreements as on 31st March, 2017, is given below

5. Capital Management

For the purpose of the Company''s capital management, capital includes issued equity capital, securities premium and all other equity reserves attributable to the equity holders of the Company. The primary objective of the Company''s capital management is to maximize the shareholder value.

The Company manages its capital structure and makes adjustments in light of changes in economic conditions. To maintain or adjust the capital structure, the Company may adjust the dividend payment to shareholders, return capital to shareholders or issue new shares. The Company monitors capital using a gearing ratio, which is net debt divided by total capital plus net debt.

The Company is not subject to any externally imposed capital requirements.

6. The Company has paid anti-dumping duty amounting to H176.77 Lac (31st March, 2016: H176.77 Lac, 1st April, 2015: H176.77 Lac) on import of phenol which in opinion of the management and based on a legal opinion, is in excess of actual margin of dumping of said materials and accordingly refundable in terms of Section 9AA of Custom Tariff Act, 1975 and hence the same is considered as receivable and included under the head Note 10 on "Other Assets".

7. Related Party Disclosure:

(a) Name of the Related Parties and Related Party Relationship:

Related Parties where Control Exists:

Subsidiary Companies Auro Sundram Ply & Door Pvt. Ltd.

Ara Suppliers Pvt. Ltd.

Arham Sales Pvt. Ltd.

Adonis Vyaper Pvt. Ltd.

Apnapan Viniyog Pvt. Ltd.

Centuryply Myanmar Pvt. Ltd.

Century MDF Ltd.

Century Ply (Singapore) Pte Ltd.

Century Infotech Ltd.(w.e.f.19.05.2015)*

PT Century Ply Indonesia.(w.e.f.03.07.2015)

Century Ply Laos Co. Ltd. (w.e.f.14.10.2015)

Innovation Pacific Singapore Pte. Ltd. (till 24.08.2016)

Vietnam Innovation Pacific JSC (from 19.05.2016- 24.08.2016)

*Associate company till 18.05.2015

Related Parties with whom Transactions have taken place during the Year:

Key Management Personnel Sri Sajjan Bhajanka (Chairman and Managing Director)

Sri Sanjay Agarwal (Managing Director)

Sri Prem Kumar Bhajanka (Managing Director)

Sri Vishnu Khemani (Managing Director)

Sri Hari Prasad Agarwal (Vice Chairman and Executive Director)

Sri Ajay Baldawa (Executive Director)

Sri Keshav Bhajanka (Executive Director w.e.f.28.01.2016)

Smt. Nikita Bansal (Executive Director w.e.f 01.02.2017)

Sri Arun Kumar Julasaria (Chief Financial Officer)

Sri Sundeep Jhunjhunwala (Company Secretary)

Relatives of Key Management Smt. Santosh Bhajanka (Wife of Sri Sajjan Bhajanka)

Personnel Smt. Divya Agarwal (Wife of Sri Sanjay Agarwal)

Smt. Yash Bala Bhajanka (Wife of Sri Prem Kumar Bhajanka)

Smt. Sudha Khemani (Wife of Sri Vishnu Khemani)

Smt. Sumitra Devi Agarwal (Wife of Sri Hari Prasad Agarwal)

Smt. Shraddha Agarwal (Daughter of Sri Sajjan Bhajanka)

Smt. Payal Agrawal (Daughter of Sri Sajjan Bhajanka)

Smt. Sonu Kajaria (Daughter of Sri Sajjan Bhajanka)

Smt. Nikita Bansal (Daughter of Sri Sanjay Agarwal)

Sri Rajesh Kumar Agarwal (Son of Sri Hari Prasad Agarwal)

Smt. Bhawna Agarwal (Daughter-in-law of Sri Hari Prasad Agarwal)

Smt. Nancy Chowdhury (Daughter of Sri Prem Kumar Bhajanka)

Sri Abhishek Rathi (Son-in-law of Sri Ajay Baldawa)

Sri Surender Kumar Gupta (Brother of Sri Prem Kumar Bhajanka)

Enterprises Owned/ Influenced Brijdham Merchants Pvt. Ltd.

by Key Management Personnel Star Cement Ltd. (Formerly Cement Manufacturing Company Ltd.) or their relatives. Sri Ram Merchants Pvt. Ltd.

Sri Ram Vanijya Pvt. Ltd.

Sumangal Business Pvt. Ltd.

Sumangal International Pvt. Ltd.

Aegis Business Ltd.

Pacific Plywoods Pvt. Ltd.

Shyam Century Multiprojects Pvt. Ltd.

Century LED Ltd.

Landmark Veneers Pvt. Ltd.

Purbanchal Timber Industries (Firm dissolved on 31.03.2016)

8. Financial Risk Management-Objectives and Policies

The Company''s financial liabilities comprise long term borrowings, short term borrowings, capital creditors, trade and other payables. The main purpose of these financial liabilities is to finance the Company''s operations. The Company''s financial assets include trade and other receivables, cash and cash equivalents, investment in subsidiaries at cost and deposits.

The Company is exposed to market risk and credit risk. The Company has a Risk management policy and its management is supported by a Risk management committee that advises on risks and the appropriate risk governance framework for the Company. The audit committee provides assurance to the Company''s management that the Company''s risk activities are governed by appropriate policies and procedures and that risks are identified, measured and managed in accordance with the Company''s policies and risk objectives. The Board of Directors reviews and agrees policies for managing each of these risks, which are summarized below.

(i) Market Risk

Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk comprises two types of risk: interest rate, currency risk and other price risk, such as commodity price risk and equity price risk. Financial instruments affected by market risk include FVTPL investments, trade payables, trade receivables, etc.

a. Foreign Currency Risk

Foreign currency risk is the risk that the fair value or future cash flows of an exposure will fluctuate because of changes in foreign exchange rates. The Company''s exposure to the risk of changes in foreign exchange rates relates primarily to the

9. Financial Risk Management-Objectives and Policies (contd.)

Company''s operating activities. The Company has a treasury department which monitors the foreign exchange fluctuations on the continuous basis and advises the management of any material adverse effect on the Company.

Foreign Currency Sensitivity

The following table demonstrates the sensitivity to a reasonably possible change in foreign currency exchange rates, with all other variables held constant. The impact on the Company''s profit before tax is due to changes in the fair value of assets and liabilities.

b. 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 market interest rates.

(ii) Credit Risks

Credit risk is the risk that counterparty will not meet its obligations under a financial instrument or customer contract, leading to a financial loss. The Company is exposed to credit risk from its operating activities (primarily trade receivables).

Trade Receivables

An impairment analysis is performed at each reporting date on an individual basis for all the customers. In addition, a large number of minor receivables are grouped into homogenous groups and assessed for impairment collectively. The calculation is based on credit losses historical data. The maximum exposure to credit risk at the reporting date is the carrying value of trade receivables disclosed in Note 12 as the Company does not hold collateral as security. The Company has evaluated the concentration of risk with respect to trade receivables as low, as its customers are located in several jurisdictions and industries.

(iii) Liquidity Risk

The Company''s objective is to maintain optimum levels of liquidity to meet its cash and collateral requirements at all times. The Company relies on a mix of borrowings and excess operating cash flows to meet its needs for funds. The current committed lines of credit are sufficient to meet its short to medium/ long term expansion needs. The Company monitors rolling forecasts of its liquidity requirements to ensure it has sufficient cash to meet operational needs.

* Indicates figures for 2016-17 ** Indicates figures for 2015-16 *** Indicates figures as on 1st April, 2015

Notes:

(a) Business Segments: The business segments have been identified on the basis of the products of the Company. Operating Segment disclosed are consistent with the information provided to and reviewed by the Chief Operating Decision Maker (CODM). Accordingly, the Company has identified following business segments:

Plywood - Plywood, Block-Board, Veneer & Timber

Laminate - Decorative Laminates & Pre-laminated Boards

MDF - Medium Density Fibre Boards

Plain Particle Board - Plain Particle Board

CFS Services - Container Freight Stations services

Others - Mainly Trading of Chemicals, Minerals, Readymade Furniture and Equipment''s

(b) Geographical Segments: The Company primarily operates in India and therefore the analysis of geographical segments is demarcated into India and overseas operations.

(c) Company''s Property Plant and Equipment (PPE) are located only in India. Hence separate figures for same have not been furnished.

Proposed Dividend

The Board of Directors at its meeting held on 23rd May, 2017 have recommended a payment of final dividend of H1 per equity share of face value of H1 each for the financial year ended 31st March, 2017. The same amounts to H2,674.02 Lac (including dividend distribution tax of H452.29 Lac).

The above is subject to approval at the ensuing Annual General Meeting of the Company and hence is not recognized as a liability.

10 Charity and Donations includes H500 Lac (H ''Nil'') paid to the Bharatiya Janata Party (a political party)

11 The financial statements are approved by the audit committee at its meeting held on 23rd May, 2017 and by the Board of Directors on the same date.


Mar 31, 2016

A) There is no change in number of shares in current year and last year.

b) Terms/Rights attached to the Equity Shares

The company has only one class of equity shares having par value of Rs.1/- 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 shareholders in the Annual General Meeting, except in case of interim dividend.

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 in proportion to their shareholdings.

c) The Company does not have any Holding/ Ultimate Holding Company. As such, no shares are held by them or their Subsidiaries/ Associates

e) There are NIL (Previous year NIL) shares reserved for issue under option and contracts/commitment for the sale of shares/ disinvestment including the terms and amounts.

f) During the period of five years immediately preceding the reporting date:

i. No shares were issued for consideration other than cash

ii. No bonus shares were issued

iii. No shares were bought back

g) There are NIL (Previous year NIL) securities convertible into Equity/ Preference Shares.

h) There are NIL (Previous year NIL) calls unpaid including calls unpaid by Directors and Officers as on the balance sheet date.

i) No shares were forfeited during the year or during the previous year.138000 equity shares of Rs.10/-each(post split 1380000 equity shares of Rs.1 each) on which Rs.3.54 lac had been paid up, were forfeited in the year 2001-2002

Notes:-

(a) Term Loan of Rs.3934.50 lac (Rs.6184.50 lac) from a bank carries interest @ base rate plus 0.50 % p.a., presently @ 9.80% (10.50%) p.a. The loan is repayable in 7 equal quarterly installments of Rs.562.50 Lac each by 31st December, 2017 and is secured by first charge over All fixed assets of plywood units at Mirza, Assam ; Bishnupur, West Bengal;Taraori, Haryana; and Chinnappolapuram, Gummidipoondi, Tamilnadu ; and by way of a second charge on entire current assets (both present and future) of the Plywood Divisions of the company. The above loan is further secured by personal guarantees of three directors of the company.

(b) Foreign currency term loan of Rs.1591.92 lac (Rs.3004.32 lac) carries interest @ 4.07% (4.07%) p.a. The loan is repayable in one installment by 21st August,2016 and is secured/to be secured by hypothecation/ equitable mortgage of all the moveable and immovable fixed assets pertaining to the Container Freight Stations of the Company. Further, three promoters have pledged in aggregate 110 lac shares of the Company as security against the loan.

(c) Foreign currency term loan of Rs.2188.89 lac (Rs.2581.84 lac) carries interest @6 months LIBOR 2.00%(3.50%) p.a. The loan is repayable in 16 equal quarterly installments by 31st March, 2020 and is secured /to be secured by first charge on all the fixed assets pertaining to the Plywood Unit at Bachau,Gujarat and second charge on all the current assets of the Plywood Divisions of the company on pari passu basis with other term lenders.

(d) Foreign currency term loan of Rs.2321.55 lac (Rs. NIL) carries interest @ 6 months LIBOR 2.00% p.a. The loan is repayable in 25 equal quarterly installments commencing from 31st March,2017 and ending on 31st March,2023 and is secured/to be secured by first charge on all the fixed assets pertaining to the Particle Board Unit at village Chinnaobulapuram, Gummidipoondi, Tamil Nadu and by second charge on all the current assets of the Plywood Divisions of the company on pari passu basis with other term lenders.

(e) Finance lease obligations are secured by hypothecation of the assets purchased there against and carrying interest between 9.64% to 11.25% p.a (9.64% to 11.25% p.a).

Notes:-

a) Cash Credit, Short Term Loan and Buyer''s Credit from banks amounting to Rs.34096.50 lac (Rs.37439.94 lac) are secured / to be secured by way of first charge on current assets (both present and future) of the company and by way of second charge on the fixed assets of the plywood units at Mirza,Assam; Bishnupur,West Bengal; Taraori,Haryana; Chinnapploapuram, Gummidipoondi,Tamilnadu and Bacchau,Gujarat. The cash credits, short term loan and buyer''s credits are also secured by personal guarantees of three directors of the Company.

b) The cash credit is repayable on demand and carries interest @ 9.85% to 10.95% (11% to 11.50%) p.a.

c) The Short Term Loan is repayable within April''15 and carries interest @ 9.60%

d) Buyers credit carries interest @ Libor plus 0.34% (0.34%) to 1.20% (1.25%) and is repayable in 90-180 days.

1. Capital & Other Commitments

a) Estimated amount of contracts remaining to be executed on Capital Account (net of advances) and not provided for Rs.14890.85 lac (Rs.7023.38 lac)

b) For commitment relating to lease arrangements, please refer note no 29.

c) Letters of credit issued by the banks for purchase of raw materials Rs.4141.64 lac (Rs.3876.08 lac)

d) Export Commitment - Rs.1168.55 lac (Rs.1717.68 lac)

2. The Company''s segment information as at and for the Year ended 31st March, 2016 are as below: (contd.)

Notes:

(a) Business Segments: The business segments have been identified on the basis of the products of the Company. Accordingly, the Company has identified following business segments:

Plywood - Plywood, Block-Board, Veneer & Timber Laminate - Decorative Laminates & Pre-laminated Boards CFS Services - Container Freight Stations services

Others - Mainly Trading of Chemicals, Minerals, Readymade Furniture and Equipments

(b) Geographical Segments: The Company primarily operates in India and therefore the analysis of geographical segments is demarcated into India and overseas operations.

(c) Company''s fixed assets are located in India and no fixed assets is located outside India, hence separate figures for fixed assets/ additions to fixed assets have not been furnished.

3. The Company has paid anti dumping duty amounting to Rs.176.77 lac (Rs.176.77 lac) on import of phenol which in opinion of the management and based on a legal opinion, is in excess of actual margin of dumping of said materials and accordingly refundable in terms of Section 9AA of Custom Tariff Act, 1975 and hence the same is considered as receivable and included under the head Short Term Loans & Advances.

4. The Company enjoys tax holiday benefit in respect of its certain units under section 80IA and 80IE of the Income Tax Act, 1961 (Act) and accordingly at present is paying Minimum Alternative Tax (MAT) under Section 115JB of the Act. Utilisation of such MAT credit would commence immediately upon completion of the Tax holiday period and the management is certain that there will be sufficient taxable profit to utilise the MAT credit recognised in the books of accounts.

5. Previous year''s figures including those given in brackets have been re-grouped and re-arranged wherever necessary.


Mar 31, 2015

1. corporate information

Century Plyboards (India) Ltd. (the Company) is a public Company domiciled in India and incorporated under the provisions of the Companies Act, 1956. Its shares are listed on National Stock Exchange of India Ltd. and BSE Ltd. The Company is primarily engaged in manufacturing and sale of Plywood, Laminates, Decorative Veneers, Pre-laminated boards and Flush Doors and providing Container Freight Station services. The Company presently has manufacturing facilities at Kolkata, Karnal, Guwahati, Bacchau and near Chennai. Container Freight station is located at Kolkata.

2. CAPITAL & OTHER COMMITMENTS

a) Estimated amount of contracts remaining to be executed on Capital Account (net of advances) and not provided for Rs. 7023.38 Lacs (Rs. 298.77 Lacs)

b) For commitment relating to lease arrangements, please refer note 28.

c) Letters of credit issued by the banks for purchase of raw materials H3876.08 Lacs (H5634.78 Lacs).

3. CONTINGENT LIABILITIES

As at As at 31st March, 31st March, 2015 2014 Rs. in Lacs Rs. in Lacs

Contingent Liabilities not provided for in respect of :-

(a) Demands / Claims by various Government Authorities and others not acknowledged as debt:

(i) Excise Duty/Service Tax 861.70 816.88

(ii) Sales Tax / VAT 764.71 582.81

(iii) Income Tax 109.65 1203.83

Total 1736.06 2603.52

(b) Guarantees in favour of a bank against facilities granted to

* a Subsidiary Company - 1000.00

* Others (outstanding amount at the year end) 421.69 239.76

(c) Un-redeemed bank guarantees 819.54 1317.74

(d) Bills discounted with banks 40.07 62.02

(e) Custom Duty on import under EPCG Scheme against which Export obligation 316.16 128.42 is to be fulfilled

Note; Based on discussion with the solicitors/favourable decisions in similar cases/legal opinion taken by the company, the management believes that the outflow of resources is not probable and hence, no provision there against is considered necessary.

4. A CSR committee has been formed by the company as per provisions of Section 135 of the Companies Act, 2013. The areas for CSR activities are promoting education, healthcare, animal welfare and projects ensuring environment sustainability .

5. The Company has charged depreciation based on the revised remaining useful life of the assets as per the requirement of Schedule II of the Companies Act, 2013 effective from April 1, 2014. Due to above, depreciation charge for the year ended 31st March,2015 is higher by Rs.819.35 lacs. Further, based on transitional provision provided in note 7(b) of Schedule II, an amount of Rs.152.02 lacs (net of Deferred Tax) has been adjusted with retained earnings.

6. RELATED PARTY DISCLOSURES

a) Name of the related parties and related party relationship;

Related parties where control exists

Subsidiary Companies Auro Sundram Ply and Door Pvt. Ltd.

Ara Suppliers Pvt. Ltd. (w.e.f. 28-07-2014)

Arham Sales Pvt. Ltd. (w.e.f. 28-07-2014)

Adonis Vyaper Pvt. Ltd. (w.e.f. 28-07-2014)

Apnapan Viniyog Pvt. Ltd. (w.e.f. 28-07-2014)

Aegis Business Ltd. (Up to 22-08-2014)

Aegis Overseas Ltd. (Up to 22-08-2014)

Centuryply Myanmar Pvt. Ltd.

Century MDF Ltd.

Century Ply (Singapore) Pte Ltd. (w.e.f 02-12-2014)

Related parties with whom transactions have taken place during the year

Associates Century Infotech Ltd.

Ara Suppliers Pvt. Ltd. (Up to 27-07-2014)

Arham Sales Pvt. Ltd. (Up to 27-07-2014)

Adonis Vyaper Pvt. Ltd. (Up to 27-07-2014)

Apnapan Viniyog Pvt. Ltd. (Up to 27-07-2014)

Aegis Siam Resources Co.Ltd. (Up to 22-08-2014)

Aegis Siam Ltd. (Up to 22-08-2014

Related parties with whom transactions have taken place during the year

Key Management Personnel Sri Sajjan Bhajanka (Chairman & Managing Director)

Sri Sanjay Agarwal (Managing Director)

Sri Prem Kumar Bhajanka (Managing Director)

Sri Vishnu Khemani (Managing Director)

Sri Hari Prasad Agarwal (Vice Chairman)

Sri Ajay Baldawa (Executive Director)

Sri Arun Kumar Julasaria (Chief Financial Officer)

Sri Sundeep Jhunjhunwala (Company Secretary)

Enterprises Owned/ Influenced Brijdham Merchants Pvt. Ltd. by Key Management Personnel Cement Manufacturing Company Ltd. or their relatives. Sri Ram Merchants Pvt. Ltd.

Sri Ram Vanijya Pvt. Ltd.

Sumangal Business Pvt. Ltd.

Sumangal International Pvt. Ltd.

Star Cement Meghalaya Ltd.

Meghalaya Power Ltd.

Auroville Investements Pvt. Ltd.

Aegis Business Ltd. (w.e.f. 07-01-2015)

Relatives of Key Management Smt. Santosh Bhajanka (Wife of Personnel Sri Sajjan Bhajanka)

Smt. Divya Agarwal (Wife of Sri Sanjay Agarwal)

Smt. Sumitra Devi Agarwal (Wife of Sri Hari Prasad Agarwal)

Smt. Yash Bhajanka (Wife of Sri Prem Kumar Bhajanka)

Smt. Sudha Khemani (Wife of Sri Vishnu Khemani)

Smt.Shraddha Agarwal (Daughter of Sri Sajjan Bhajanka)

Smt. Payal Agrawal (Daughter of Sri Sajjan Bhajanka)

Smt. Sonu Kajaria (Daughter of Sri Sajjan Bhajanka)

Smt. Bhawna Agarwal (Daughter-in-law of Sri Hari Prasad Agarwal)

Sri Rajesh Kumar Agarwal (Son of Sri Hari Prasad Agarwal)

Smt. Nancy Chowdhury (Daughter of Sri Prem Kumar Bhajanka)

Sri Keshav Bhajanka (Son of Sri Sajjan Bhajanka)

Sri Abhishek Rathi (Son in Law of Sri Ajay Baldawa)

Sri Surender Kumar Gupta (Brother of Sri Prem Kumar Bhajanka)

Smt. Nikita Bansal (Daughter of Sri Sanjay Agarwal)

7. The Company's segment information as at and for the Year ended 31st March, 2015 are as below:

Notes:

(a) Business Segments; The business segments have been identified on the basis of the products of the Company, Accordingly, the Company has identified following business segments;

Plywood - Plywood, Block-Board, Veneer & Timber

Laminate - Decorative Laminates & Pre-laminated Boards

CFS Services - Container Freight Stations services

Others - Mainly Trading of Chemicals, Minerals, Readymade Furniture and Equipments

(b) Geographical Segments; The Company primarily operates in India and therefore the analysis of geographical segments is demarcated into India and overseas operations,

(c) Company's fixed assets are located in India and no fixed assets is located outside India, hence separate figures for fixed assets/ additions to fixed assets have not been furnished,

8. The Company has paid anti dumping duty amounting to Rs.176.77 (Rs. 176,77) lacs on import of phenol which in opinion of the management and based on a legal opinion, is in excess of actual margin of dumping of said materials and accordingly refundable in terms of Section 9AA of Custom Tariff Act, 1975 and hence the same is considered as receivable and included under the head Short Term Loans & Advances,

9. The Company enjoys tax holiday benefit in respect of its certain units under section 80IA and 80IE of the Income Tax Act, 1961 (Act) and accordingly at present is paying Minimum Alternative Tax (MAT) under Section 115JB of the Act. Utilisation of such MAT credit would commence immediately upon completion of the Tax holiday period and the management is certain that there will be sufficient taxable profit to utilise the MAT credit recognised in the books of accounts.

10. Previous year's figures including those given in brackets have been re-grouped and re-arranged wherever necessary.


Mar 31, 2014

1.0 CORPORATE INFORMATION

Century Plyboards (India) Ltd. (the Company) is a public Company domiciled in India and incorporated under the provisions of the Companies Act, 1956. Its shares are listed on National Stock Exchange of India Ltd. and BSE Ltd. The Company is primarily engaged in manufacturing and sale of Plywood, Laminates, Decorative Veneers, Pre-laminated boards and Flush Doors and providing Container Freight Station services. The Company presently has manufacturing facilities at Kolkata, Karnal, Guwahati, Bacchau and near Chennai. Container Freight station is located at Kolkata.

1.1 Basis of Preparation

The financial statements of the Company have been prepared in accordance with generally accepted accounting principles in India (Indian GAAP). The Company has prepared these financial statements to comply in all material respects with the Accounting Standards notified by the Companies (Accounting Standards) Rules, 2006 (as amended) and the relevant provisions of the Companies Act, 1956 read with General Circular No 8/2014 dated 4th April, 2014, issued by Ministry of Corporate Affairs. The financial statements have been prepared under the historical cost convention on an accrual basis. The accounting policies applied by the Company are consistent with those used in the previous year.

2. CAPITAL & OTHER COMMITMENTS

a) Estimated amount of contracts remaining to be executed on Capital Account (net of advances) and not provided for Rs.298.77 Lacs (Rs.491.53 Lacs)

b) For commitment relating to lease arrangements, please refer Note 30.

3. CONTINGENT LIABILITIES As at As at 31st March, 2014 31st March, 2013 Rs. in Lacs in Lacs

Contingent Liabilities not provided for in respect of :-

(a) Demands / Claims by various Government Authorities and others not acknowledged as debt:

(i) Excise Duty/Service Tax 816.88 817.44

(ii) Sales Tax / VAT 582.81 528.64

(iii) Income Tax 1203.83 216.03

Total 2603.52 1562.11

(b) Guarantees in favour of a bank against facilities granted to

- a Subsidiary Company 1000.00 1000.00

- Others 239.76 93.07

(c) Un-redeemed bank guarantees 1317.74 814.76

(d) Bills discounted with banks 62.02 -

(e) Letters of credit issued by the banks 5634.78 5919.05

(f) Custom Duty on import under EPCG Scheme against which

Export obligation is to be fulfilled 128.42 106.97

Note: Based on discussion with the solicitors/favourable decisions in similar cases/legal opinion taken by the Company the management believes that the outflow of resources in not probable and hence, no provision there against is considered necessary.

4. (a) operating Lease:

Certain office premises, depots etc. are obtained on operating lease. The lease terms are for 1-3 years and are renewable for further period either mutually or at the option of the Company. There is no escalation clause in the lease agreement. There are no restrictions imposed by lease arrangements. There are no subleases. The leases are cancellable.

5. The Company has a defined benefit gratuity plan. Every employee who has completed five years or more of service is entitled to Gratuity as per provisions of The Payment of Gratuity Act, 1972. The scheme is funded with an insurance company.

The following tables summarize the components of net benefit expenses recognised in the Statement of Profit & Loss and the funded status and amounts recognised in the balance sheet for the Gratuity.

(i) Amount incurred as expense for defined contribution to Provident Fund is Rs.491.59 Lacs (Rs.393.06 lacs).

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

(iii) The Company expects to contribute Rs.100 lacs (Rs.100 Lacs) to Gratuity fund in 2014-15.

5. Derivative Instruments And unhedged Foreign Currency Exposure.

a) Derivative instrument not for trading or speculation but as hedge of underlying transaction, outstanding as on the balance sheet date, are as follows:-

Interest Rate Swap

Notional amount USD 72 Lacs (USD 96 Lacs). [Rs.4,327.20 Lacs (Rs.5,221.44 Lacs)]

Hedge against exposure to variable interest outflow on loans. Swap to pay fixed interest @ 1.62% p.a. (in USD) and receive a variable interest @ 3 month LIBOR on the notional amount

6. Charity and Donations includes Rs.14.00 Lacs (T7.00 lacs) paid to the Bhartiya Janata Party.

7. Related Party Disclosures

a) Name of the related parties and related party relationship: Related parties where control exists

Subsidiary Companies

Auro Sundram Ply & Door Pvt. Ltd. Aegis Business Ltd. Aegis Overseas Ltd. Centuryply Myanmar Pvt. Ltd. Century MDF Ltd.

Related parties with whom transactions have taken place during the year

Associates Century Infotech Ltd. (with effect from 14th March, 2014)

Key Management Personnel

Sri Sajjan Bhajanka (Chairman) Sri Sanjay Agarwal (Managing Director) Sri Prem Kumar Bhajanka (Managing Director) Sri Vishnu Khemani (Managing Director) Sri Hari Prasad Agarwal (Vice Chairman) Sri Ajay Baldawa (Executive Director) Sri Arun Kumar Julasaria (Chief Financial Officer)

Enterprises Owned/ Influenced by Key Management Personnel or their relatives.

Brijdham Merchants Pvt. Ltd. Cement Manufacturing Company Ltd. Sri Ram Merchants Pvt. Ltd. Sri Ram Vanijya Pvt. Ltd. Sumangal Business Pvt. Ltd. Sumangal International Pvt. Ltd. Star Cement Meghalaya Ltd. Meghalaya Power Ltd. Auroville Investements Pvt. Ltd.

Relatives of Key Management Personnel

Smt. Santosh Bhajanka (Wife of Sri Sajjan Bhajanka) Smt. Divya Agarwal (Wife of Sri Sanjay Agarwal) Smt. Sumitra Devi Agarwal (Wife of Sri Hari Prasad Agarwal) Smt. Yash Bhajanka (Wife of Sri Prem Kumar Bhajanka) Smt. Sudha Khemani (Wife of Sri Vishnu Khemani) Smt. Shraddha Agarwal (Daughter of Sri Sajjan Bhajanka) Smt. Payal Agrawal (Daughter of Sri Sajjan Bhajanka) Smt. Sonu Kajaria (Daughter of Sri Sajjan Bhajanka) Sri Rajesh Kumar Agarwal (Son of Sri Hari Prasad Agarwal) Smt. Bhawna Agarwal (Daughter-in-law of Sri Hari Prasad Agarwal) Smt. Nancy Chowdhury (Daughter of Sri Prem Kumar Bhajanka) Sri Keshav Bhajanka (Son of Sri Sajjan Bhajanka) Smt. Nikita Bansal (Daughter of Sri Sanjay Agarwal)

(c) The Company purchases goods from Auro Sundram Ply & Door Pvt. Ltd., a subsidiary company on certain special terms and conditions which include commitment of supply of its entire production to the Company timely availability and delivery as required by the Company commitment of consistent quality as per the Company norms and free of cost delivery of goods, besides other terms and conditions

8. The Company has paid anti dumping duty amounting to Rs.176.66 lacs on import of phenol which in opinion of the management and based on a legal opinion, is in excess of actual margin of dumping of said materials and accordingly refundable in terms of Section 9AA of Custom Tariff Act, 1975 and hence the same is considered as receivable and included under the head Loans & Advances.

9. The Company enjoys tax holiday benefit in respect of its certain units under section 80IA and 80IE of the Income Tax Act, 1961 (Act) and accordingly at present is paying Minimum Alternative Tax (MAT) under Section 115JB of the Act. Utilisation of such MAT credit would commence immediately upon completion of the Tax holiday period and the management is certain that there will be sufficient taxable profit to utilise the MAT credit recognised in the books of accounts.

10. Previous year''s figures including those given in brackets have been re-grouped and re-arranged wherever necessary.


Mar 31, 2013

1. CORPORATE INFORMATION

Century Plyboards (India) Ltd. (the Company) is a public Company domiciled in India and incorporated under the provisions of the Companies Act, 1956. Its shares are listed on National Stock Exchange and Bombay Stock Exchange in India. The Company is primarily engaged in manufacturing and sale of Plywood, Laminates, Decorative Veneers, Pre- laminated boards and Flush Doors. The Company presently has manufacturing facilities at Kolkata, Karnal, Guwahati, Bacchau and Chennai.

1.1 Basis of Preparation

The financial statements of the Company have been prepared in accordance with generally accepted accounting principles in India (Indian GAAP). The Company has prepared these financial statements to comply in all material respects with the Accounting Standards notified by the Companies (Accounting Standards) Rules, 2006 (as amended) and the relevant provisions of the Companies Act, 1956. The financial statements have been prepared under the historical cost convention on an accrual basis. The accounting policies applied by the Company are consistent with those used in the previous year.

2. Capital & Other Commitments

a) Estimated amount of contracts remaining to be executed on Capital Account (net of advances) and not provided for f 491.53 Lacs (f 1,395.35 Lacs)

b) For commitment relating to lease arrangements, please Refer Note No. - 33.

3. There is a diminution of f 360.60 Lacs (f 185.70 Lacs) in the value of a quoted investment based on the last quoted price. The above investment being long term and strategic in nature, the said diminution, in the opinion ofthe management, istemporary in nature and hence no provision is considered necessary.

4. Excise Duty debited to Statement of Profit & Loss is Net of Subsidy f 679.52 Lacs (f 687.93 Lacs).

5. (a) Operating Lease :

Certain office premises, depots etc are obtained on operating lease. The lease terms are for 1-3 years and are renewable for further period either mutually or at the option of the Company. There is no escalation clause in the lease agreements. There are no restrictions imposed by lease arrangements. There are no sub-leases. The leases are cancellable.

6. The Company has a defined benefit gratuity plan. Every employee who has completed five years or more of service is entitled to Gratuity on terms not less favorable than the provisions of The Payment of Gratuity Act, 1972. The scheme is funded with an insurance company.

7. Scheme ofArrangement:

a) Pursuant to the Scheme of Arrangement ("The Scheme") approved by the Hon''ble High Court of Kolkata vide its order dated 17th May, 2013, all the assets and liabilities of the Ferro Alloys and Cement division (i.e., business and interests ofthe Company in manufacture of ferro alloys and cement, including captive power plants attached thereto) have been transferred to and vested in Star Ferro and Cement Limited (Resulting Company) at their respective book values on a going concern basis with effect from 1st April, 2012 being the appointed date. Accordingly, the Scheme ofArrangement has been given effect to in these accounts.

8. The Company has paid anti dumping duty amounting to Rs. 204.16 Lacs (including Rs. 47.43 Lacs during the year) on import of phenol which in opinion of the management and based on a legal opinion, is in excess of actual margin of dumping of said materials and accordingly refundable in terms of Section 9AA of Custom Tariff Act, 1975 and hence the same is considered as receivable and included under the head Loans & Advances.

9. In view of the new plywood unit being installed at Gandhidham, Gujarat and expansion of the existing Laminate unit, the management is certain that there will be sufficient taxable profit during the specified period to adjust the MAT credit recognised in the books of accounts.

10. Previous year''s figures including those given in brackets have been regrouped and rearranged wherever necessary. Further, previous year figures being inclusive of the figures of ferro alloys and cement divisions of the Company which have been demerged w.e.f. 1st April, 2012 (pursuant to a Scheme of Arrangement, Refer Note No. - 35), are not comparable with the current year''s figures.


Mar 31, 2012

1. BASIS OF PREPARATION

The financial statements have been prepared to comply in all material respects with the Accounting Standards notified by the Companies (Accounting Standards) Rules, 2006 (as amended) and the relevant provisions of the Companies Act, 1956. The financial statements have been prepared under the historical cost convention on an accrual basis except in respect of insurance and other claims, which on the grounds of prudence or uncertainty in realization, are accounted for as and when accepted/received. The accounting policies applied by the Company are consistent with those used in the previous year, except for the change in accounting policy explained in l.l(i) below.

2. Capital & Other Commitments

a) Estimated amount of contracts remaining to be executed on Capital Account (net of advances) and not provided forRs. 1,395.35 Lacs (Rs. 271.89 Lacs).

b) For commitment relating to lease arrangements, please refer note no. 31.

3. Contingent Liabilities (Rs. in Lacs)

As at As at 31st March,2012 31st March, 2011

Contingent Liabilities not provided for in respect of:-

(a) Demands/Claims by various Government Authorities and others not acknowledged as debt:

(i) Excise Duty/Service Tax 392.54 537.40

(ii) Sales Tax/VAT 327.14 316.20

(iii) Income Tax 313.38 285.52

(iv) Others - 34.32

Total 1,033.06 1,173.44

(b) Guarantees in favour of a bank against facilities 641.00 641.00 granted to a Subsidiary Company

(c) Un-redeemed bank guarantees 557.29 507.11

(d) Bills discounted with banks 9.29 751.31

(e) Letters of credit issued by the banks 3,102.55 2,086.46

(f) Custom Duty on import under EPCG Scheme against which Export obligation is to be fulfilled 68.12 24.39

Note:

Based on discussion with the solicitors/favourable decisions in similar cases/legal opinion taken by the Company, the management believes that the Company has a good chance of success in above mentioned cases and hence, no provision there against is considered necessary.

4. There is a diminution of Rs. 185.70 lacs (Rs. 66.30 Lacs) in the value of a quoted investment based on the last quoted price. The above investment being long term and strategic in nature, the said diminution, in the opinion of the management, is temporary in nature and hence no provision is considered necessary.

5. Excise Duty debited to Statement of Profit & Loss is Net of Subsidy Rs. 687.93 Lacs (Rs. 436.67 Lacs).

6. (a) Operating Lease :

Certain office premises, depots etc are obtained on operating lease. The lease terms are for 1-3 years and are renewable for further period either mutually or at the option of the Company. There is no escalation clause in the lease agreement. There are no restrictions imposed by lease arrangements. There are no sub-leases. The leases are cancellable.

7. The Company has a defined benefit gratuity plan. Every employee who has completed five years or more of service is entitled to Gratuity on terms not less favorable than the provisions of The Payment of Gratuity Act, 1972. The scheme is funded with an insurance Company.

8. Charity and Donations includes Rs. 4.00 Lacs (Rs. 10.00 Lacs) paid to the Bhartiya Janata Party and Rs NIL (Rs. 5.00 Lacs) paid to West Bengal Pradesh Congress Committee for political purposes.

9. Related Party Disclosures

a) Name of the related parties: Subsidiary Companies

Cement Manufacturing Company Ltd.

AuroSundram Ply & Door Pvt. Ltd.

Megha Technical & Engineers Pvt. Ltd.

Meghalaya Power Ltd.

Star Cement Meghalaya Ltd.

NE Hills Hydro Ltd. (with effect from 3rd February, 2011)

Star Ferro & Cement Ltd. (with effect from 10th March, 2011)

Aegis Business Ltd.

Aegis Overseas Ltd.

Associates

Adonis Vyaper Pvt. Ltd. (with effect from 31st March, 2012) Apnapan Viniyog Pvt. Ltd. (with effect from 31st March, 2012) Ara Suppliers Pvt. Ltd. (with effect from 31st March, 2012) Arham Sales Pvt. Ltd. (with effect from 31st March, 2012)

Key Management Personnel

Sri Satya Brata Ganguly (Chairman) (Resigned on 12th March, 2012)

Sri Sajjan Bhajanka (Chairman)

Sri SanjayAgarwal (Managing Director)

Sri Prem Kumar Bhajanka (Managing Director)

Sri Vishnu Khemani (Managing Director)

Sri Hari Prasad Agarwal (Vice Chairman)

Sri AjayBaldawa (Executive Director)

Sri Brij Bhushan Agarwal (Director) (Resigned on 10th May, 2011)

Sri Arun Kumar Julasaria (Chief Financial Officer cum Company

Secretary)

Enterprises Owned/Influenced by Key Management Personnel or their relatives

Adonis Vyaper Pvt. Ltd. (upto 30th March, 2012)

Apnapan Viniyog Pvt. Ltd. (upto 30th March, 2012)

Ara Suppliers Pvt. Ltd. (upto 30th March, 2012)

Arham Sales Pvt. Ltd. (upto 30th March, 2012)

Brijdham Merchants Pvt. Ltd.

Pacific Plywoods Pvt. Ltd.

Shyam Century Cement Industries Ltd.

Sriram Merchants Pvt. Ltd.

SriramVanijyaPvt.Ltd.

Sumangal Business Pvt. Ltd.

Sumangal International Pvt. Ltd._

Relatives of Key Management Personnel

Smt. Santosh Bhajanka (Wife of Sri Sajjan Bhajanka)

Smt. Divya Agarwal (Wife of Sri Sanjay Agarwal)

Smt. Sumitra Devi Agarwal (Wife of Sri Hari Prasad Agarwal)

Smt. Yash Bhajanka (Wife of Sri Prem Kumar Bhajanka)

Smt. Sudha Khemani (Wife of Sri Vishnu Khemani)

Sri Keshav Bhajanka (Son of Sri Sajjan Bhajanka)

Miss Nikita Agarwal (Daughter of Sri Sanjay Agarwal)

10. Foreign Exchange Loss Rs. 921.78 Lacs (Rs. 11.73 Lacs) (Net) towards creditors/debtors pertaining to specific segments has been included as unallocable income/expenses instead of the relevant segments results as the amount of such exchange gain/loss for different segments is not ascertainable.

11. The Company has paid anti dumping duty amounting to Rs. 156.73 Lacs (including Rs. 81.85 Lacs during the year) on import of phenol which in opinion of the management and based on a legal opinion, is in excess of actual margin of dumping of said materials and accordingly refundable in terms of Section 9AA of Custom Tariff Act, 1975 and hence the same is considered as receivable and included under the head Loans & Advances.

12. Previous year's figures including those given in brackets have been re-arranged where necessary to conform to the current year's classifications under Revised Schedule VI as stated in note l.l(i) above.


Mar 31, 2011

(Rs. in Lacs)

As at As at 31.03.2011 31.03.2010

1. Estimated amount of contracts remaining to be executed on Capital Account (net of advances) and not provided for 271.89 893.23

2. Contingent Liabilities not provided for in respect of :-

a) Demands /Claims by various Government Authorities and others not acknowledged as debts:

i) Excise Duty/Service Tax 537.40 153.06

ii) Sales Tax/VAT 316.20 364.05

iii) Income Tax 285.52 175.19

iv) Others 34.32 -

Total 1,173.44 692.30

b) Un-redeemed bank guarantees 507.11 122.21

c) Bills discounted with banks 751.31 809.64

d) Letters of credit issued by the banks 2,086.46 947.91

e) Custom Duty on import under EPCG Scheme against which Export obligation is to be fulfilled 24.39 61.35

3. There is a diminution of Rs. 66.30 lacs (Rs. Nil) in the value of a quoted investment based on the last quoted price. The above investment being long term and strategic in nature, the said diminution, in the opinion of the management, is temporary in nature and hence no provision is considered necessary

4. Excise Duty on sales has been reduced from sales in Profit & Loss Account and excise duty on increase/decrease in stocks has been considered as income/Expenses in Profit & Loss Account.

5. In terms of Section 115-O of the Income Tax Act,1961, dividend on Equity shares is not subject to tax on dividend to the extent of dividend received from a subsidiary company during the year.

8. Sales Tax /VAT and Excise duty debited to Profit and loss account are Net of Subsidy Rs 152.02 lacs (Rs.104.50 lacs) and Rs. 436.67 lacs (Rs.108.52) respectively.

10. (a) Operating Lease

Certain office premises, depots, etc. are obtained on operating lease. The lease terms are for 1-3 years and are renewable for further period either mutually or at the option of the Company. There is no escalation clause in the lease agreement. There are no restrictions imposed by lease arrangements. There are no subleases. The leases are cancellable.

11. The Company has a defined benefit gratuity plan. Every employee who has completed five years or more of service is entitled to Gratuity on terms not less favorable than the provisions of The Payment of Gratuity Act, 1972. The scheme is funded with an insurance company.

viii) Amount incurred as expense for defined contribution to Provident Fund is Rs. 243.13 lacs (Rs. 214.21 lacs).

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

x) The Company expects to contribute Rs. 125 lacs (Rs. 85 lacs) to Gratuity fund in 2011-2012.

15. Charity and Donations includes Rs. 10.00 lacs (Rs. 5.00 lacs) paid to the Bhartiya Janata Party and Rs. 5.00 lacs (Rs. Nil) paid to West Bengal Pradesh Congress Committee for political purposes.

16. Related Party Disclosures

a) Name of the related parties:

Subsidiary Companies

Cement Manufacturing Company Ltd.

Auro Sundram Ply & Door Pvt. Ltd.

Megha Technical & Engineers Pvt. Ltd.

Meghalaya Power Ltd.

Star Cement Meghalaya Ltd.

Star Ferro & Cement Ltd. (with effect from 10th March, 2011)

Aegis Business Ltd.

Aegis Overseas Ltd.

NE Hills Hydro Ltd. (with effect from 3rd February, 2011)

Key Management Personnel

Sri Satya Brata Ganguly (Chairman)

Sri Sajjan Bhajanka (Managing Director)

Sri Sanjay Agarwal (Joint Managing Director)

Sri Prem Kumar Bhajanka (Joint Managing Director)

Sri Vishnu Khemani (Joint Managing Director)

Sri Hari Prasad Agarwal (Vice Chairman)

Sri Ajay Baldawa (Executive Director)

Sri Brij Bhushan Agarwal (Director)

Sri Arun Kumar Julasaria (Chief Financial Officer cum Company Secretary)

Enterprises Owned/ Influenced by Key Management Personnel or their relatives.

Adonis Vyaper Pvt. Ltd.

Amul Boards Pvt. Ltd.

Apnapan Viniyog Pvt. Ltd.

Ara Suppliers Pvt. Ltd.

Arham Sales Pvt. Ltd.

Brijdham Merchants Pvt. Ltd.

Namchic Tea Estate Pvt. Ltd.

Pacific Plywoods Pvt. Ltd.

Riangdo Veneers Pvt. Ltd.

Shyam Century Cement Industries Ltd.

Sriram Merchants Pvt. Ltd.

Sriram Vanijya Pvt. Ltd.

Sumangal Business Pvt. Ltd.

Sumangal International Pvt. Ltd.

Relatives of Key Management Personnel

Smt. Santosh Bhajanka (Wife of Sri Sajjan Bhajanka)

Smt. Divya Agarwal (Wife of Sri Sanjay Agarwal)

Smt. Sumitra Devi Agarwal (Wife of Sri Hari Prasad Agarwal)

Smt. Yash Bhajanka (Wife of Sri Prem Kumar Bhajanka)

Smt. Mittu Agarwal (Wife of Sri Brij Bhushan Agarwal)

Smt. Sudha Khemani (Wife of Sri Vishnu Khemani)

18. Foreign Exchange Loss of Rs. 142.05 lacs (Previous Year Gain of Rs. 1,895.79 lacs) (Net) towards creditors/debtors pertaining to specific segments has been included as unallocable income/expenses instead of the relevant segments results as the amount of such exchange gain/loss for different segments is not ascertainable.

19. The Company has paid anti dumping duty amounting to Rs. 74.88 lacs on import of phenol which in opinion of the management is in excess of actual margin of dumping of said materials and accordingly refundable in terms of Section 9AA of Custom Tariff Act, 1975 and hence the same is considered as receivable and included under the head Loans & Advances.

20. Previous year figures including those given in brackets, have been regrouped and / or rearranged, wherever necessary.


Mar 31, 2010

1. a) Pursuant to the Scheme of Amalgamation ("the scheme") as approved by the Honble High Court at Guwahati, by an order dated 17th May, 2010, under section 394 of the Companies Act, 1956, Cent Ply Private Limited ("CPPL"), a wholly owned subsidiary of the Company, has been amalgamated with the Company with effect from 1st April, 2009.

b) The Amalgamating Company (CPPL) is engaged in manufacturing of plywood and allied products at its factory at Mirza, Palasbari, Assam.

c) The amalgamation has been accounted for under the "pooling of interests" method as prescribed by Accounting Standard (AS-14), "Accounting for Amalgamations". Pursuant to the Scheme, all the assets, liabilities and reserves of CPPL as at 1st April, 2009 have been transferred at their book values as given below. Though, the Scheme has become effective after the balance sheet date, it is operative from the appointed date i.e. 1st April, 2009 and accordingly, it has been given effect to in these accounts.

d) The Investments of Rs. 800 lacs in CPPL as appearing in the books of the Company and the paid up capital of Rs. 800 lacs appearing in books of CPPL stands cancelled.

e) The title deeds for freehold/leasehold land, buildings, licenses, agreements, loan documents etc. of the amalgamating company are in the process of being transferred in the name of the company.

2. Excise Duty on sales has been reduced from sales in Profit & Loss Account and excise duty on increase/decrease in stocks has been considered as income/expense in Profit & Loss Account.

3. In terms of Section 115-0 of the Income Tax Act, 1961, interim and final dividend on Equity shares is not subject to tax on dividend to the extent of interim dividend received from a subsidiary company during the year.

4. (a) Operating Lease

Certain office premises, depots, etc. are obtained on operating lease. The lease term are for 1-3 years and renewable for further period either mutually or at the option of the Company. There is no escalation clause in the lease agreement. There are no restrictions imposed by lease arrangements. There are no subleases. The leases are cancellable.

(b) Fixed Assets include certain Vehicles obtained on finance lease. The year-wise break-up and future obligation towards minimum lease payments of Rs. 880.29 lacs (Rs. 695.02 Lacs) consisting of present value of lease payments of Rs. 724.77 lacs (Rs. 551.02 Lacs) and financial charges Rs. 155.52 lacs (Rs. 143.99 Lacs) under 155.52 the respective agreements as on 31st March, 2010, is given below:

5. The Company has a defined benefit gratuity plan. Every employee who has completed five years or more of service is entitled to Gratuity on terms not less favourable than the provisions of The Payment of Gratuity Act, 1972. The scheme is funded with an insurance company.

The following tables summarise the components of net benefit expenses recognised in the Profit & Loss Account and the funded status and amounts recognised in the balance sheet for the Gratuity.

Notes:

a) Business Segments: The business segments have been identified on the basis of the products of the Company. Accordingly, the Company has identified following business segments:

Plywood - Plywood, Block-Board, Veneer & Timber

Laminate - Decorative Laminates & Pre-laminated Boards

Ferro-Alloys - Ferro Silicon

Power - Generation of Power

Logistic - Container Freight Station (CFS) and Jetty

Others - Mainly Trading of Chemicals and Minerals

b) Geographical Segments: The Company primarily operates in India and therefore the analysis of geographical segments is demarcated into India and overseas operations.

c) The company has common fixed assets for producing goods for domestic and overseas market. Hence separate figures for fixed assets/additions to fixed assets have not been furnished .

6. Foreign Exchange gain of Rs. 1895.79 lacs (Previous Year loss of Rs. 2724.86 lacs) (Net) towards creditors/debtors pertaining to specific segments has been included as unallocable income/expenses instead of the relevant segments results as the amount of such exchange gain/loss for different segments is not ascertainable.

7. Figures given in brackets are for the previous year and the same have been regrouped and/or rearranged, wherever necessary. Further, the current year figures being inclusive of the figures of Cent Ply Private Limited amalgamated with the company w.e.f. 1st April, 2009 (Pursuant to a scheme of amalgamation), are not comparable with the previous years figures.


Mar 31, 2000

1. No provision for gratuity has been made in the accounts, which as per actuarial valuation as on 31.03.2000 comes to Rs.35,64,168/- (previous year Rs.27,99,081/-).

2. No provision for diminution in the value of Long-Term investments has been made in the accounts as the fluctuations in the market value of such investments are temporary in nature, in the opinion of the management.

3. Fixed Deposits of the company have been given to Bank as Margin Money.

4. Insurance Claim is accounted for as and when received.

5. Advance Income Tax and T.D.S. receivable are shown as net of provision of Income Tax.

6. Method of valuation of inventory other than finished goods has been changed from at Cost to lower of cost or net realisable value to comply with AS-2 issued by ICAI, however there is no impact on profit for the year due to such change and also on the value of inventory.

7. The Company has invested in Century International, a partnership firm with a total capital of Rs4,44,189 comprising of the following partners each entitled to share the percentage of profit as appearing against their name below :

(a) Sanjay Agarwal - l%,(b) Sajjan Bhajanka - l%,(c) Rajesh Agarwal - l%,(d) Divya Agarwal - 3.5% e) Santosh Bhajanka - 3.5%,(f) Century Plyboards (I) Ltd. - 90%.

8. Contingent Liabilities :

a) Unegotiated Irrecoverable Letter of Credit Rs.3,50,54,870/- (Previous Year Rs.1,77,63,716/-)

b) Estimated amount of Capital contracts remaining to be executed and not provided is Rs. 1056490/-(Previous Year Rs.9,96,210/-) against which Rs.357647/- (Previous Year Rs.4,13,000/-) has been given as Advance.

c) The Company has paid Rs 5,40,738/- as advance under protest to WBSEB against their final surcharge bill, however the matter is yet to be settled.

d) Income - Tax Demand for the assessment Year 1996-97, amounting to Rs 4.82 Lacs under dispute.

9. The company has no Small Scale - industrial undertaking to whom the company owes Rs 100000/- or more for a period exceeding 30 days as on 31.3.2000

10. Depreciation on revaluation of fixed assets has not been provided. The impact of such non provi sion on fixed assets and reserves & surplus at the year end has not been ascertained

11. Managerial remuneration is within limits prescribed in Section 198 & 309 of the Companies Act 1956 read with Schedule XIII Part II Section I.

12. Previous years figures have been regrouped and re-arranged wherever necessary.

13. Figures have been rounded off to nearest rupee.

14. Previous years Figures have been given in brackets.

15. Balance Sheet Abstract and Companys General Business Profile.

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