Notes to Accounts of Ellora Paper Mills Ltd.

Mar 31, 2014

Note - 1: Corporate Information

Ellora Paper Mills Limited is a public Company domiciled in India and incorporated under the provision of the Companies Act, 1956. Its registered office is situated at 379, Pandit Jawaharlal Nehru Marg, Ashoka Vault Building, Sitabuldi, Nagpur- 440 012. Ellora Paper Mills Limited is engaged in the business of manufacture of paper products.

Note- 2: Contingent Liabilities and Commitments Figures in Rupees

Particulars As at 31st March As at 31st March 2014 2013 Contingent Liabilities

Performance guarantees given by a bank 1,37,000 11,37,000 Total 1,37,000 11,37,000

Note 3: Employee Retirement Benefits

The Company has a defined benefit gratuity plan. Every employee who has completed five years or more of service gets a gratuity on departure at 15 days salary (last drawn salary) for each completed year of service. The Scheme is unfunded. The present value of obligation is determined based on acturaial valuation using Projected Unit Credit Method, which recognises each period of services as giving rise to additional unit of employee benefit entitlement and measures each unit separately to build up the final obligation. The obligation for leave encashment is recognised in the same manner as gratuity.

---

Mar 31, 2013

Note 1 Employee Retirement Benefits

The Company has a defined benefit gratuity plan. Every employee who has completed five years or more of service gets a gratuity on departure at 15 days salary (last drawn salary) for each completed year of service. The Scheme is unfunded. The present value of obligation is determined based on actuarial valuation using Projected Unit Credit Method, which recognises each period of services as giving rise to additional unit of employee benefit entitlement and measures each unit separately to build up the final obligation. The obligation for leave encashment is recognised in the same manner as gratuity.

The following table summarises the components of net benefit expense recognized in the profit and loss account and the amounts recognized in the balance sheet.

Note- 2 Related Party Disclosures

As per Accounting Standard 18, the disclosures of transactions with the related parties are given below:

(I) List of related parties where control exist and with whom transaction have taken place.

Sr.No. Name of Related Party

1 Ellora Plantation Limited

2 Brajeshwari Paper Traders

3 Eqube Academy Private Limited

4 Richards Pharma Lab Limited

5 Citizen Welfare Association

6 Benupick Paper Board Private Limited

7 Texline Agencies Limited

(II) Key Management Personnel

Sr.No. Name of Key Managerial Personnel

1 Shri C.P Goenka , Managing Director

2 Shri Sudhir Goenka, Executive Director

(ill) Relatives & Enterprises of Key management personnel where transactions have taken place. Sr.No. Name of Related Party

1 Smt. Kusum Goenka

2 Smt. Archana Goenka

3 Smt. Savitri Devi Goenka

4 Shri Ashok Dalmia

5 Ashok Dalmia HUF

6 Shri Parikshit Dalmia

7 Sudhir Goenka HUF

8 Ms. Twisha Goenka

9 Ms. Megha Goenka

10 Shri. Shashank Goenka

11 Shri. Sandeep Goenka

12 Shri. C.P. Goenka (HUF)

13 Lofty Vyapaar Private Limited

Note- 3 Previous year figures

The previous year figures have been regrouped/reclassified /recasted/rearranged wherever necessary to correspond with the current year classification/disclosure.

Note 4 Contingent Liabilities and Commitments Figures In Rupees

Particulars As at 31st March 2013 As at 31st March 2012

Contingent Liabilities

Performance guarantees given by a bank 11,37,000 11,37,000

Total 11,37,000 11,37,000

---

Mar 31, 2010

1. Contingent Liabilities not Provided for in respect of: 2009-10 2008-09

(i) Disputed demands of Income Tax Department NIL NIL

(ii) Claims against the Company not acknowledged as debts 1,66,000 1,66,000

(iii) Performance guarantees given by a Bank 23,75,000 22,67,000

(iv) Disputed Bank Penal Interest 6,11,000 --

2. The incremental liability towards gratuity for the Accounting year as per actuarial valuation amounting to Rs.8,50,000/- has been provided in the current accounting year(Previous year Rs. 7,75,000/-),

3. In the opinion of the Board of Directors, the Current Assets are approximately of the value sj stated against them if realized in the ordinary course of business, unless otherwise stated. The Provision of depreciation and all known liabilities is adequate and not in excess of the amount reasonably necessary.

4. The balances of debtors/creditors and sundry deposits are as per Books of Account only.

5. Excise duty in respect of goods manufactured by the Company and according to the method of accounting consistently followed, is accounted at the time of removal of goods from the factory for sale and captive consumption. Such excise duty liability as at 31s1 March, 2010 is estimated at Rs. NIL (Previous year Rs.NIL). This accounting practice, however, has no impact on the profit for the year.

6. In view of the amendments to part I of Schedule VI of the Companies Act, 1956, vide notification No. GSR 129 (E) dated 22nd February, 1999, issued by the Department of the Company Affairs (DCA) relating to Small Scale Industrial undertakings and considering the multiplicity and difficulty in identification of accounts of such undertakings, the information of determining the particulars in respect of indebtedness of such undertakings as on 31" March 2010 is not available. However, there are no specific claims from suppliers under the "Interest on delayed payment to Small Scale and Ancillary Industrial Undertaking Act, 1993".

7. Provision towards repayment of Interest free Sales Tax Loan, received from SICOM Limited has been made on the basis of Present Value @ 1.25 per cent per month.

8. Sales include trading sales of Rs.274.18 lakhs and. the corresponding finished goods purchased during the year are included in Raw material consumed.

9. Previous years figu res have been regrouped and recast wherever necessary.

10. Significant Accounting Policies followed by the Company are disclosed in the statement annexed to this schedule.

---

Mar 31, 2009

2008-09 2007-08 Rupees Rupees

1. Contingent Liabilities not Provided for in respect of:

(j) Disputed demands of Income Tax Department NIL NIL

(ii) Claims against the Company not acknowledged as debts 1,66,000 1,66,000

(iii) Performance guarantees given by a Bank . 22,67,000 50,03,658

2. The incremental liability towards gratuity for the Accounting year as per actuarial valuation amounting to Rs.7,75,000/- has been provided in the current accounting year (Previous year Rs. 7,77,508/-).

3. In the opinion of the Board of Directors, the Current Assets are approximately of the value as stated against them if realized in the ordinary course of business, unless otherwise stated. The Provision of depreciation and all known liabilities is adequate and not in excess of the amount reasonably necessary.

4. The balances of debtors/creditors and sundry deposits are as per Books of Account only.

5. Excise duty in respect of goods manufactured by the Company and according to the method of accounting consistently followed, is accounted at the time of removal of goods from the factory for sale and captive consumption Such excise duty liability as at 31st March, 2009 is estimated at Rs. NIL (Previous year Rs.NIL). This, accounting practice, however, has no impact on the profit for the year.

6. In view of the amendments to part I of Schedule VI of the Companies Act, 1956, vide notification No. GSR 129 (E) dated 22nd February, 1999, issued by the Department of the Company Affairs (DCA) relating to Small Scale Industrial undertakings and considering the multiplicity and difficulty in identification of accounts of such undertakings, the information of determining the particulars in respect of indebtedness of such undertakings as on 31st March 2009 is not available. However, there are no specific claims from suppliers under the "Interest on delayed payment to Small Scale and Ancillary Industrial Undertaking Act, 1993".

7. Provision towards repayment of Interest free Sales Tax Loan, received from SICOM Limited has been made on the basis of Present Value @ 1.25 per cent per month.

8. Sales include trading sales of Rs. 1030.10 lakhs and the corresponding finished goods purchased during the year are included in Raw material consumed,

9 Previous years figures have been regrouped and recast wherever necessary.

10 Significant Accounting Policies followed by the Company are disclosed in the statement annexed to this schedule.