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Notes to Accounts of Genus Paper & Boards Ltd.

Mar 31, 2023

Terms / rights attached to shares equity shares

The Company has only one class of equity shares having a par value of Re.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 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. However, no such preferential amounts exist currently. The distribution will be in proportion to the number of equity shares held by the shareholders.

Notes :

1 Term loan from BOB of Rs. 5792.99 (previous year Rs. 5613.99) are secured by first pari-passu Equitable Mortgage of Land & Building & hypothecation of Entire Fixed assets including Plant & Machinery etc, (existing / future) and second pari-passu charge on entire current assets of the company under consortium arrangements with PNB, SBI & Yes bank Ltd, These are further secured by personal guarantee of Shri IC Agarwal, Shri Kailash Chandra Agarwal & Shri Himanshu Agarwal.These loans are repayble in equal quarterly installment started from December 2022 and will end in June 2030.

2 Term loan from SBI of Rs. 3817.92 (previous year 3631.98) are secured by first pari-passu Equitable Mortgage of Land & Building & hypothecation of Entire Fixed assets including Plant & Machinery etc, (existing / future) and second pari-passu charge on entire current assets of the company under consortium arrangements with BOB, PNB & Yes Bank Ltd, These are further secured by personal guarantee of Shri IC Agarwal, Shri Kailash Chandra Agarwal & Shri Himanshu Agarwal, These loans are repayble in equal monthly/quarterly installment started from January 2022 and will end in June 2030,

3 Term loan from PNB of Rs. 2400.46 (previous year Rs. 2392.00) are secured by first pari-passu Equitable Mortgage of Land & Building & hypothecation of Entire Fixed assets including Plant & Machinery etc, (existing / future) and second pari-passu charge on entire current assets of the company under consortium arrangements with BOB, SBI & Yes bank Ltd, These are further secured by personal guarantee of Shri IC Agarwal, Shri Kailash Chandra Agarwal & Shri Himanshu Agarwal, These loans are repayble in equal quarterly installment started from December 2022 and will end in June 2030,

4 Term loan from Yes Bank Limited of Rs. 2340.05 (previous year Rs. 2395.30) are secured by first pari-passu Equitable Mortgage of Land & Building & hypothecation of Entire Fixed assets including Plant & Machinery etc, (existing / future) and second pari-passu charge on entire current assets of the company under consortium arrangements with BOB, SBI & PNB, These are further secured by personal guarantee of Shri IC Agarwal, Shri Kailash Chandra Agarwal & Shri Himanshu Agarwal, These loans are repayble in equal quarterly installment starting from December 2022 and will end in June 2030,

5 Term loan from Axis Finance Limited of Rs. 2400.00 (previous year Rs. Nil) are secured by first pari-passu Equitable Mortgage of Land & Building & hypothecation of Entire Fixed assets including Plant & Machinery etc, (existing / future) and second pari-passu charge on entire current assets of the company under consortium arrangements with BOB, SBI & PNB & Yes bank Ltd, However the perfection of security is yet to be created after obtaining concurrence of existing consortium, In the meantime, 1,23,50,000 equity shares of the company held by promotor Director have been pledged and would be released after above perfection of security, These are further secured by personal guarantee of Shri IC Agarwal, Shri Kailash Chandra Agarwal & Shri Himanshu Agarwal, These loans are repayble in equal quarterly installment starting from December 2023 and will end in September 2029,

6 Term loan from Aditya Birla Finance Limited of Rs, 2000,00 (previous year Rs, Nil) are secured by pledge of equity shares of Genus Power Infrastructures Ltd, (25 Lakhs shares held by Promotor Director), These loans are repayble in equal monthly installment starting from July 2023 and will end in June 2025,

7 Term loan of Rs, 1,83 from HDFC Bank, (previous year Rs, 8,69) are secured by hypothecation of Motor Cars,

8 Term loan of Rs, 8,70 from Punjab National Bank (previous year Rs, 21,36) are secured by hypothecation of Motor Cars,

9 Term loan of Rs, 96,40 from Indusind Bank (previous year Rs, 89,35) are secured by hypothecation of Fire Tandor, Forklift, Tractor & Loader,

10 Term loan of Rs, 19,73 from Gulshan Mercantile Urban Co-Opr, Bank Ltd, (previous year Rs, 18,99 ) are secured by hypothecation of Motor Vehicles & Tractor,

11 Term loan of Rs, 26,74 from ICICI Bank Ltd, (previous year Rs, 33,96) are secured by hypothecation of Loader,

12 Term loan of Rs, 75,79 from The Federal Bank Ltd, (previous year Rs, Nil) are secured by hypothecation of Motor Car,

13 Working Capital Loan from SBI Rs. 2997.79 (previous Year Rs. 2372.91) are secured by first pari-passu charge by way of hypothecation of entire current assets ( present & future ) including all stocks & receivables and second pari-passu charge on entire fixed assets of the Company under consortium arrangements with BOB, Yes Bank Ltd. & Axis bank Ltd.These are further secured by personal guarantee of Shri IC Agarwal, Shri Kailash Chandra Agarwal & Shri Himanshu Agarwal,

14 Working Capital Loan from BOB Rs. 2260.16 (previous Year Rs. 1416.96) are secured by first pari-passu charge by way of

hypothecation of entire current assets ( present & future ) including all stocks & receivables and second pari-passu charge on

entire fixed assets of the Company under consortium arrangements with SBI, Yes Bank Ltd & Axis Bank Ltd.These are further secured by personal guarantee of Shri IC Agarwal, Shri Kailash Chandra Agarwal & Shri Himanshu Agarwal,

15 Working Capital Loan from Yes Bank Rs. 102.14 (previous Year Rs. Nil) are secured by by first pari-passu charge by way of

hypothecation of entire current assets ( present & future ) including all stocks & receivables and second pari-passu charge on

entire fixed assets of the Company under consortium arrangements with BOB, SBI, & Axis Bank Ltd.These are further secured by personal guarantee of Shri IC Agarwal, Shri Kailash Chandra Agarwal & Shri Himanshu Agarwal,

16 Working Capital Loan from Axis Bank Ltd. Rs. 305.18 (previous Year Rs. Nil) are secured by first pari-passu charge by way of hypothecation of entire current assets ( present & future ) including all stocks & receivables and second pari-passu charge on entire fixed assets of the Company under consortium arrangements with BOB, SBI & Yes Bank Ltd.These are further secured by personal guarantee of Shri IC Agarwal, Shri Kailash Chandra Agarwal & Shri Himanshu Agarwal,

Disclosures related to defined benefit plan

The Company has a defined benefit gratuity plan and governed by Payment of Gratuity Act, 1972. Every employee who has completed five years or more of service gets a gratuity on departure at 15 days last drawn salary for each completed year of service. The following tables summarise net benefit expenses recognised in the statement of profit and loss, the status of funding and the amount recognised in the Balance sheet for the gratuity plan:

Hedging Activities and Derivatives

The Company uses foreign currency denominated borrowings and foreign exchange forward contracts to manage some of its transaction exposures. The foreign exchange forward contracts are not designated as cash flow hedges and are entered into for periods consistent with foreign currency exposure of the underlying transactions, generally from one week to twelve months.

Fair Values

The fair value of the financial assets and liabilities approximates their carrying amounts as at the balance sheet date.

Financial risk management objectives and policies Financial Risk Management Framework

The Company Is exposed primarily to Credit Risk, Liquidity Risk and Market risk . The Company has a risk management policy and its management is supported by a risk management committee that advices on risk and appropriate financial risk governance framework for the Company. The risk management committee provides assurance to the Company''s management that the 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. Risk assessment and management policies and processes are reviewed regularly to reflect changes in market conditions and the Company''s activities. The Board of Directors and the Audit Committee are responsible for overseeing Company''s financial risk assessment and management policies and processes.

Credit Risk

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 and loans to companies). Exposure to credit risk:

The Company''s exposure to credit risk is influenced mainly by the individual characteristics of each customer and the carrying amount of financial assets represents the maximum credit exposure. The maximum exposure to credit risk was Rs. 6988.84 lakhs, (March 31,2022: Rs. 5296.77 lakhs), being the total of the carrying amount of balances with trade receivables and loans to companies.

Liquidity Risk

Liquidity risk refers to the risk that the Company cannot meet its financial obligations. The Company manages liquidity risk by maintaining adequate reserves, banking facilities and reserve borrowing facilities, by continuously monitoring forecast and actual cash flows, and by matching the maturity profiles of financial assets and liabilities.

Market Risk

Market risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market prices. Such changes in the values of financial instruments may result from changes in the foreign currency exchange rates, interest rates, credit, liquidity and other market changes. The Company''s exposure to market risk is primarily on account of foreign currency exchange rate risk. 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 change in market interest rates. The borrowings of the Company are fixed rates and therefore the Company is not exposed significantly to the interest rate risk.

Foreign Currency exchange rate risk

The fluctuation in foreign currency exchange rates may have potential impact on the statement of profit or loss and other comprehensive income and equity, where any transaction references more than one currency or where assets / liabilities are denominated in a currency other than the functional currency of the respective entities.The risks primarily relate to fluctuations in US Dollar, Japanese Yen , SGD and Euro against the functional currency of the Company. The Company, as per its risk management policy, uses derivative instruments primarily to hedge foreign currency payable. The Company evaluates the impact of foreign exchange rate fluctuations by assessing its exposure to exchange rate risks. It hedges a part of these risks by using derivative financial instruments in line with its risk management policies.

The company has been sanctioned working capital limits in excess of five crore rupees, in aggregate, from banks or financial institutions on the basis of security of current assets. The quarterly returns or statements filed by the company with such banks or financial institutions are in aggregate with the books of account of the company and there Is no material difference.

Significant accounting judgements, estimates and assumptions

The preparation of the Company''s separate financial statements requires management to make judgements, 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. There are no significant areas involving a high degree of judgement or complexity.

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.

Defined benefit plans (gratuity benefits)

The cost of the defined benefit gratuity plan and other post-employment medical benefits and the present value of the gratuity 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. Those mortality tables tend to change only at interval in response to demographic changes. Future salary increases are based on expected future inflation. Further details about gratuity obligations are given in Note 36(2).

48 Capital Management

For the purpose of the Company''s capital management, capital includes issued equity capital and all other equity reserves attributable to the equity holders. The primary objective of the Company''s capital management is to maximise the shareholder value and keep the debt equity ratio within acceptable range. The Company manages its capital structure and makes adjustments in light of changes in economic conditions and the requirements of the financial covenants. To maintain or adjust the capital structure, the Company may adjust the dividend payment to shareholders, return capital to shareholders and issue new shares.

⁵² Additional Disclosure on account of amendment in schedule III of the Companies Act, 2013

(I) The Company does not have any Benami property, where any proceeding has been initiated or pending against the Group for holding any Benami Property under Benami Transactions (Prohibition) act,1988.

(II) The Company has not been declared wilful defaulter by any bank or financial institution or government or any government authority In accordance with the guidelines on wilful defaulters Issued by the RBI.

(III) The Company does not have any transactions with companies struck off under section 248 of the Companies act, 2013

(Iv) The Company does not have any charges or satisfaction which Is yet to be registered with ROC beyond the statutory period.

(v) The Company has not advanced or loaned or Invested funds to any other person(s) or entity (Ies), Including foreign entities (intermediaries) with the understanding that the intermediary shall:

(a) directly or indirectly lend or invest in other persons or entities Identified in any manner whatsoever by or on behalf of the company (Ultimate Beneficiaries) or

(b) provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries

(vi) The Company has not received any fund from any person(s) or entity(ies), Including foreign entities (Funding Party) with the understanding (whether recorded in writing or otherwise) that the Group shall:

(a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party (Ultimate Beneficiaries) or

(b) provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries

(vii) The Company has not any such transaction which Is not recorded In the books of accounts that has been surrendered or disclosed as income during the year In the tax assessments under the income Tax Act, 1961 (such as, search or survey or any other relevant provisions of the income Tax Act, 1961.

(viii) The Company Is covered under section 135 of the Companies act, 2013. The required disclosure details of Corporate Social Responsibility is as under:

The previous year''s figures have been reworked, regrouped, rearranged and reclassified wherever necessary. Amounts and other disclosures for the preceding year are included as an integral part of the current year financial statements and are to be read in relation to the amounts and other disclosures relating to the current year.

Mar 31, 2018

1. CORPORATE INFORMATION

Genus Paper & Boards Limited (referred to as âGenusâ or the âCompanyâ) is a public company domiciled in India. The Company is primarily engaged in the business manufacturing of Kraft paper and steel ingot. The equity shares of the Company are listed on National Stock Exchange of India Limited and BSE Limited. The registered office of the Company is located at Village Aghwanpur, Kanth Road, Moradabad, Uttar Pradesh - 244 001.

The financial statements were authorised for issue in accordance with a resolution of the directors on 22nd May, 2018.

2. SIGNIFICANT ACCOUNTING POLICIES FOR THE YEAR ENDED 31ST MARCH, 2018

2.1 Basis of Preparation

The financial statements of the Company have been prepared in accordance with Indian Accounting Standards (âInd ASâ) notified under the Companies (Indian Accounting Standards) Rules, 2015.

For all periods up to and including the year ended 31st March, 2017, the Company prepared its financial statements in accordance with accounting standards notified under the section 133 of the Companies Act 2013, read together with paragraph 7 of the Companies (Accounts) Rules, 2014 (âIndian GAAPâ). These financial statements for the year ended 31st March, 2018 are the first financial statements, the Company has prepared in accordance with Ind AS.

The financial statements have been prepared on a historical cost basis, except for certain financial assets and land the following assets and liabilities which have been measured at fair value.

The financial statements are presented in Indian Rupees (INR) and all values are rounded to the nearest lakh, except when otherwise indicated.

Notes :

1 Term loan from PNB of Rs. 1029.63 (previous year INR 1363.07 ) are secured by hypothecation of Plant & Machinery, equipments, tools etc. (existing / future) of paper & board division on rank pari passu with Hero Fincorp Limited. These loans are repayable in un-equal monthly instalment starting from Sept., 2011 and will end in March, 2021. The above facilities are further secured by first pari pasu charge with Hero Fincorp Ltd.by way of EM of factory land & building related to paper and board division. Exclusive first charge of Land and building, P&M of Co-Gen Power Plant, Steel Division and residential block.

2 Term loan from Hero Fincorp Limited of Rs. 884.73 (previous year Rs. 1153.03) are secured by hypothecation of Land, Building and Plant & Machinery, equipments, tools etc. (existing / future) of paper & board division on rank pari passu with PNB. These facility is further secured by second charge on land & building of steel division and residential staff colony situated at Agwanpur, Moradabad. These loans are repayable in equal monthly instalment starting from April, 2018 and will end in August, 2020.

3 Term loan from Yes Bank Limited of INR 1851.60 (previous year INR Nil) are secured by hypothecation of Land, Building and Plant & Machinery, equipments, tools etc. (existing / future) of paper & board division on rank pari passu with PNB. These facility is further secured by second charge on land & building of steel division and residential staff colony situated at Agwanpur, Moradabad. These loans are repayable in equal monthly instalment starting from February, 2018 and will end in December, 2020.

4 Term loan of INR 11.91 from HDFC Bank. (previous year INR 17.55) are secured by hypothecation of vehicles, repayable in monthly equal instalment.

5 Term loan of INR 7.74 from Punjab National Bank (previous year INR 8.80) are secured by hypothecation of vehicles.

6 Term loan of INR 9.67 from Axis Bank (previous year INR 11.71) are secured by hypothecation of vehicles.

Sale of goods includes excise duty collected from customers of INR 464.08 (31st March, 2017: INR 1,955.55). Sales net of excise duty is INR 34,557.24 (31st March, 2017: INR 30,568.71). Revenue from operations for period upto 30th June, 2017 includes excise duty. From 1st July, 2017 onwards the excise duty and most indirect taxes in India have been replaced by GST. The Company collects GST on behalf of the Government and hence it is not included in Revenue from operations.

3 GRATUITY AND OTHER POST-EMPLOYMENT BENEFIT PLANS

(1) Disclosures related to defined contribution plan

(2) Disclosures related to defined benefit plan

The Company has a defined benefit gratuity plan and governed by Payment of Gratuity Act, 1972. The Employeesâ Gratuity Fund Scheme managed by a trust is a defined benefit gratuity plan which is administered through Group Gratuity Scheme with Life Insurance Corporation of India. Every employee who has completed five years or more of service gets a gratuity on departure at 15 days last drawn salary for each completed year of service. The following tables summarise net benefit expenses recognised in the statement of profit and loss, the status of funding and the amount recognised in the Balance sheet for the gratuity plan:

(3) Notes:

1 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.

4 HEDGING ACTIVITIES AND DERIVATIVES

5 FAIR VALUES

The fair value of the financial assets and liabilities approximates their carrying amounts as at the balance sheet date.

6 FAIR VALUE HIERARCHY

The following table provides the fair value measurement hierarchy of the Companyâs assets and liabilities.

Measurement of Fair Value - Valuation techniques

The following table shows the valuation techniques used in measuring Level 2 fair values for assets and liabilities carried at fair value through profit or loss.

7 FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES

Financial Risk Management Framework

The Company is exposed primarily to Credit Risk, Liquidity Risk and Market risk . The Company has a risk management policy and its management is supported by a risk management committee that advices on risk and appropriate financial risk governance framework for the Company. The risk management committee provides assurance to the Companyâs management that the risk activities are governed by appropriate policies and procedures and that risks are identified, measured and managed in accordance with the Companyâs policies and risk objectives. Risk assessment and management policies and processes are reviewed regularly to reflect changes in market conditions and the Companyâs activities. The Board of Directors and the Audit Committee are responsible for overseeing Companyâs financial risk assessment and management policies and processes.

Credit Risk

Exposure to credit risk:

The Companyâs exposure to credit risk is influenced mainly by the individual characteristics of each customer and the carrying amount of financial assets represents the maximum credit exposure. The maximum exposure to credit risk was INR 14,898.31 lakhs, (31st March, 2017: INR 13,378.27 lakhs, 1st April, 2016: INR 11,129.65 lakhs), being the total of the carrying amount of balances with trade receivables and loans to companies.

Liquidity Risk

The table below summarises the maturity profile of the Companyâs financial liabilities based on contractual undiscounted payments:

Market Risk

Market risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market prices. Such changes in the values of financial instruments may result from changes in the foreign currency exchange rates, interest rates, credit, liquidity and other market changes. The Companyâs exposure to market risk is primarily on account of foreign currency exchange rate risk.

Interest rate risk

Foreign Currency exchange rate risk

8 In respect of the amounts mentioned under section 125 of the Companies Act, 2013 there are no dues that are to be credited to the investor education and protection fund.

9 SIGNIFICANT ACCOUNTING JUDGEMENTS, ESTIMATES AND ASSUMPTIONS

The preparation of the Companyâs separate financial statements requires management to make judgements, 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. There are no significant areas involving a high degree of judgement or complexity.

Estimates and assumptions

Defined benefit plans (gratuity benefits)

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.

10 CAPITAL MANAGEMENT

For the purpose of the Companyâs capital management, capital includes issued equity capital and all other equity reserves attributable to the equity holders. The primary objective of the Companyâs capital management is to maximise the shareholder value and keep the debt equity ratio within acceptable range. The Company manages its capital structure and makes adjustments in light of changes in economic conditions and the requirements of the financial covenants. To maintain or adjust the capital structure, the Company may adjust the dividend payment to shareholders, return capital to shareholders and issue new shares.

11 FIRST TIME ADPOTION OF IND AS

These financial statements, for the year ended 31st March, 2018, are the Companyâs first financial statements which have been prepared in accordance with Ind AS. For periods up to and including the year ended 31st March, 2017, the Company prepared its financial statements in accordance with accounting standards notified under section 133 of the Companies Act 2013, read together with paragraph 7 of the Companies (Accounts) Rules, 2014 (Indian GAAP).

Accordingly, the Company has prepared financial statements which comply with Ind AS applicable for periods ending on 31st March, 2018, together with the comparative period data as at and for the year ended 31st March, 2017, as described in the summary of significant accounting policies. In preparing these financial statements, the Companyâs opening balance sheet was prepared as at 1st April, 2016, the Companyâs date of transition to Ind AS. This note explains the principal adjustments made by the Company in restating its Indian GAAP financial statements, including the balance sheet as at 1st April, 2016 and the financial statements as at and for the year ended 31st March, 2017.

Exemptions applied

Ind AS 101 allows first-time adopters certain exemptions from the retrospective application of certain requirements under Ind AS. The Company has applied the following exemptions:

Since there is no change in the functional currency, the Company has elected to continue with the carrying value for all of its property, plant and equipment as recognised in its Indian GAAP financial as deemed cost at the transition date except for Freehold Land which has been Fair valued.

The Company has designated quoted and unquoted equity instruments held at 1st April, 2016 as fair value through OCI investments. The Company has designated quoted and unquoted Preference Shares and Debentures held at 31st March, 2018 which have been valued at Amortised Cost.

Estimates

The estimates at 1st April, 2016 and at 31st March, 2017 are consistent with those made for the same dates in accordance with Indian GAAP (after adjustments to reflect any differences in accounting policies).The estimates used by the Company to present these amounts in accordance with Ind AS reflect conditions at 1st April, 2016, the date of transition to Ind AS and as of 31st March, 2017.

(i) Remeasure of actuarial gains/(losses)

Both under Indian GAAP and Ind AS, the Company recognized costs related to its post-employment defined benefit plan on an actuarial basis. Under Indian GAAP, the entire cost, including actuarial gains and losses, were charged to profit or loss. Under Ind AS, remeasurements comprising of actuarial gains and losses are recognized immediately in the balance sheet with a corresponding debit or credit to retained earnings through OCI.

(ii) Deferred tax assets

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 accounting for deferred taxes using the balance sheet approach, which focuses on temporary difference 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 and the Company has accounted for such differences. Deferred tax adjustment are recognized in correlation to the underlying transaction either in retained earnings or a separate component in equity.

(iii) Trade receivables

Under Ind AS, impairment allowance has been determined based on Expected Credit Loss model (ECL).

(iv) Other comprehensive income (OCI)

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

(v) Cash flow statement

Transition from Indian GAAP to Ind AS has not had a material impact on the statement of cash flows.

12 STANDARDS ISSUED BUT NOT YET EFFECTIVE

Ind AS 115 Revenue from Contracts with Customers

Ind AS 115 was notified on 28th March, 2018 and establishes a five-step model to account for revenue arising from contracts with customers. Under Ind AS 115, revenue is recognised at an amount that reflects the consideration to which an entity expects to be entitled in exchange for transferring goods or services to a customer.

The new revenue standard will supersede all current revenue recognition requirements under Ind AS. Either a full retrospective application or a modified retrospective application is required for annual periods beginning on or after 1st April, 2018 and will be applied accordingly. The Company is evaluating the impact of Ind AS 115 related to the recognition of revenue from contracts with customers and it continues to evaluate the changes to accounting system and processes, and additional disclosure requirements that may be necessary. A reliable estimate of the quantitative impact of Ind AS 115 on the financial statements will only be possible once the evaluation has been completed.

Other Amendments:

On 28th March, 2018, the MCA, issued certain amendments to Ind AS. The amendments relate to following standards:

- Ind AS 21, The Effects of Changes in Foreign Exchange Rates

- Ind AS 12, Income Taxes

- Ind AS 28, Investments in Associates and Joint Ventures

The amendments are effective from 1st April, 2018. The company believes that the aforementioned amendements will not materially impact the financial statements of the Company.

Mar 31, 2016

A Significant accounting Policies for the year ended March 31, 2016.

1. Basis of Preparation of Financial Statements

(i) The financial statements of the Company have been prepared in accordance with the 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 under section 133 of the Companies Act, 2013, read together with paragraph 7 of the Companies (accounts) Rules, 2014.

(ii) The financial statements have been prepared on an accrual basis and under the historical cost convention. The accounting policies adopted in the preparation of financial statements are consistent with those of previous year.

2. Use of Estimates

The preparation of financial statement requires estimates and assumptions to be made that affect the reported amount of assets and liabilities on the date of the financial statements and the reported amount of revenues and expenses during the reporting period. Difference between the results and estimates are recognized in the period in which the results are known / materialized.

3. Revenue Recognition

(i) Revenue from sale of products is recognized when the risk and reward of ownership of the product is passed on to the customers, which is generally on dispatch of goods. Sales are stated exclusive of Sale/Trade tax

(ii) Dividend income is recognized when the unconditional right to receive the income is established.

(iii) Revenue in respect of other income is recognized when no significant uncertainty as to its determination or realization exists.

4. Cash Flow Statement (AS-3)

Cash Flow Statement has been prepared adopting the indirect method as prescribed under Para18 of Accounting Standard-3 (AS-3) on âCash Flow Statementâ.

5. Fixed Assets

Fixed Assets are stated at cost net of CENVAT, less accumulated depreciation. Cost of acquisition is inclusive of inward freight, duties and taxes and incidental expenses related to acquisition. In respect of major projects involving construction, related pre-operational expenses form part of the value of assets capitalized. Expenses capitalized also include applicable borrowing costs. To adjust the original cost of Fixed Assets acquired through foreign currency loans at the end of each financial year by any change in liability arising out of expressing the outstanding foreign loan at the rate of exchange prevailing at the date of Balance Sheet.

6. Depreciation

In accordance with the provisions of Schedule II of the Companies Act, 2013, the Company has estimated the useful lives of fixed assets. Depreciation on tangible assets is provided on the straight-line method over the useful lives of assets estimated by the Management. Depreciation for assets purchased / sold during a period is proportionately charged. Intangible assets are amortized over their respective individual estimated useful lives on a straight-line basis, commencing from the date the asset is available to the Company for its use. The Management estimates the useful lives for the fixed assets. The consequential impact (after considering the provision specified in Schedule II) on the depreciation charged and on the results for the year is not material.

7. Impairment of Assets

An asset is treated as impaired when the carrying cost of asset exceeds its recoverable value. An impairment loss is charged to the Profit and Loss Account in the year in which an asset is identified as impaired. The impairment loss recognized in prior accounting period as reversed if there has been a change in the estimate of recoverable amount.

8. Foreign Currency Transactions

Transactions in foreign currency are recorded at the exchange rate prevailing on the date of transaction or at the rates covered by the forward contracts. The exchange differences on conversion are adjusted to:

a. Cost of Fixed Assets, if the foreign currency liability relates to the fixed assets.

b. Cost of Raw Material & Chemicals, if the foreign currency liability relates to these items.

c. Bank charges, if the foreign currency liability relates to conversion of bank''s credit facility into foreign currency.

Monetary items denominated in foreign currency at the year-end and not covered by the foreign exchange contract are restated at year end rates.

9. Investments

Long term Investments are stated at cost. Provision for diminution in the value of long-term investment is made only if such a decline is other than temporary in opinion of the management. Any such diminution in the value of investment, charged to profit and loss statement.

10. Inventories

Cost of inventories comprises all costs of purchase, conversion and other costs incurred in bringing the inventories to their present location and condition.

Raw materials, Stores & Spares are valued at cost, determined on the basis of the weighted average method.

Work-in-progress is valued at the lower of cost and net realizable value.

Finished goods are valued at the lower of cost and net realizable value. Excise duty is included in the value of finished goods inventory.

11. Preliminary Expenses

Preliminary expenses (including the expenses for enhancement of Authorized capital) have been amortized over a period of five years.

12. Retirement benefits

Company''s contributions to Provident Fund are charged to Profit & Loss Account on accrual basis. Liability for payment of Gratuity and Leave Encashment is charged to Profit & Loss Account on the basis of Actuarial valuation as at year end.

13. Borrowing Costs

Borrowing costs that are attributable to the acquisition or construction of qualifying assets are capitalized as a part of the cost of such assets. A qualifying asset is one that necessarily takes substantial period of time to get ready for its intended use. All other borrowing costs are charged to revenue.

14. Provision for Current Tax & Deferred Tax

Provision for taxation comprises of current tax, deferred tax and Current Tax provision has been made on the basis of relief and deductions available under Income Tax Act, 1961. Deferred Tax resulting from timing difference between taxable and accounting income is accounted for using the tax rate and law that are enacted or substantively enacted as on the balance sheet dates. Deferred tax assets are recognized and carried forward only to the extent that there is virtual certainty that the assets will be realized, in future. Deferred tax is computed in accordance with Accounting Standard 22- âAccounting for Taxes on Incomeâ issued by the Institute of Chartered Accountants of India.

15. Accounting of CENVAT Credit

Cenvat credit available on raw material, chemicals, stores & spares is accounted for by booking respective material purchases, net of excise duty, similarly Cenvat Credit entitlement on Capital goods, net of excise. Both these Cenvat Credits are accumulated and shown as receivable under âLoans and Advancesâ for adjustments in due course against duty payable on dispatch of finished goods.

16. Provision, Contingent Liabilities and Contingent Assets

Provisions involving substantial degree of estimation in measurement are recognized when there is a present obligation as a result of past events and it is probable that there will be an outflow of resources Contingent Liabilities are not recognized but are disclosed in the notes. Contingent Assets are neither recognized nor disclosed in the financial statements.

i) Provisions are recognized only when there is a present obligation as a result of past events and when a reliable estimate of the amount of the obligation can be made.

ii) Contingent Liabilities is disclosed in Notes to the account for (a) Possible obligations which will be confirmed only by future events not wholly within the control of the company or (b) Present Obligations arising from past events where it is not probable that an outflow of resources will be required to settle the obligation or a reliable estimates of the amount of the obligation cannot be made. Contingent assets are not recognized in the financial statement since this may result is the recognition of the income that may never realize.

17. Corporate Social Responsibility (CSR) Expenditure

As per section 135 of the Companies Act, 2013, a company, meeting the applicability threshold, need to spend at least 2% of its average net profit for the immediately three financial years on corporate social responsibilities (CSR) activities. The areas for CSR activities are eradication of hunger and malnutrition, promoting education, art and culture, healthcare, destitute care and rehabilitation, environment sustainability, disaster relief and rural development projects. A CSR committee has been formed by the company as per the act. Company has incurred expenditure of Rs. 22,87,359/- (P.Y. Rs. 20,19,963/-) toward CSR activities, which is charged to profit and loss statement.

18. Trade Payables

In the absence of identification of Micro, small & Medium Enterprises, We could not verify the same.

19. In view of giving full attention to main business activities of the Company, the Board had on 23.6.2014 approved the transaction of disposal of entire shareholding in the Subsidiary of the Company viz. Genus Prime Infra Limited (formerly Gulshan Chemfill Limited) in terms of the Share Purchase Agreement dated 01.7.2014 and subject to the provisions of SEBI Takeover Regulations 2011. Pursuant to the approval of members of the company in the 3rd annual general meeting held on 30.9.2014 and SEBI'' letter no. CFD/DCR/AT/SKD/PA/4585/2015 dated February 11, 2015. Genus Prime Infra Limited and it''s three subsidiaries i.e. Sansar Infrastructure Pvt. Ltd., Sunima Trading Pvt. Ltd. And Star Vanijya Pvt. Ltd. (wholly owned subsidiaries of Genus Prime Infra Limited) has ceased to be subsidiaries of the Company w.e.f. 21st April, 2015.

20. The previous year''s figures have been reworked, regrouped, rearranged and reclassified wherever necessary.

Mar 31, 2015

1. Securities

1(a) Term loan from SBI -INR Rs. Nil (previous year Rs. Nil ) are secured by exclusive first charge on entire fixed assets of the company other than fixed assets of Paper & particle board division save and except assets charged to PNB to rank "pari passu" between lenders at 2 and/ or 3 and further secured by securities mentioned at 2 below on "pari passu" basis.

(b) The above facilities are further secured by first charge on Land, Building and Plant & machinery of steel division, land & building of administrative block and residential colony. save and except first "pari passu" charge on certain personal assets of promoters and directors.

2. Term loan from PNB Rs.246149083.00 (previous year Rs. 74217406.00 ) are secured by hypothecation of Plant & Machinery, equipments, tools etc. (existing / future of paper & board division save and except assets charged to banks to rank pari passu between lenders at 1. These loans are repayable in un-equal monthly installment starting from April, 2010 and will end in March, 2021.

3. Term loan of Rs. 2727393.68 from HDFC Bank. (previous year Rs. 451726.36) are secured by hypothecation of vehicles.

4. Term loan of Rs. Nil from State Bank of India (previous year Rs. 48326.00) are secured by hypothecation of vehicles.

5. Term loan of Rs. 1614034.00 from Punjab National Bank (previous year Rs. 2035467.00) are secured by hypothecation

2. Securities

1(a) Working Capital Loan INR Rs. 245946279.32 (previous Year Rs. 222085488.63) are secured by exclusive first charge by way of hypothecation of entire current assets ( existing & future ) including all stocks & receivables pertaining to steel division and co-gen. Power plant of the company save and except assets charged to PNB to rank pari passu between lenders at 2. Further secured by securities mentioned at 2 below on pari passu basis (b) The above facilities are further secured by first charge on Land, Building and Plant & machinery of steel division , land & building of administrative block and residential colony. save and except first "pari passu" charge on certain personal assets of promoters and directors.

2. Working Capital Loan from PNB Rs. 75631492.70 ( previous Year Rs. 97222808.89 ) are secured by hypothecation of entire current assets ( present & future ) of the Multi-layered kraft paper unit save and except assets charged to bank to rank "pari passu" between lenders at para 1.

3. CONTINGENT LIABILITIES AND COMMITMENTS

31-03-15 31-03-14

Contingent Liabilities not provided for (Rs. In lac) (Rs. In lac) in respect of :

a. Guarantees given by the Bankers on behalf of the Company(Net of margin money) 104.81 118.92

b. Estimated amount of contract remaining to be executed on Capital account(Net) - -

c. Letter of credit issued by Bank(Net - - of Margin money)

d. Disputed demands under:

Sales Tax/Commercial Tax 99.33 17.45

Factories Act 2.75 2.00

Central Excise and Service Tax 83.55 38.34

4. RELATED PARTY DISLOSURE

Related party disclosures, as required by Accounting Standard 18, ÂRelated Party DisclosuresÂ, issued by the Institute of Chartered Accountants of India are given below:

a. Key Management Personnel : Kailash Chandra Agarwal

: Himanshu Agarwal

b. Relatives of Key Managerial Personnel : N.P.Todi

c. Enterprises controlled by Key : Genus Power Infrastructure Ltd.

Management personnel and Individuals : Kailash Coal and Coke Co. Ltd

having significant Influence : J.C.Textile Pvt.Ltd.

: Virtuous Urja Ltd.

d. Subsidiary : Genus Prime Infra Limited

: Sunima Trading Pvt. Limited *

: Sansar Infrastructure Pvt. Limited *

: Star Vanijya Pvt. Limited*

* Subsidiary Companies of Genus Prime Infra Ltd

5. In terms of the scheme of arrangement during the year ended March 31, 2014 amongst the companies Genus Power Infrastructures Limited (ÂGPILÂ),Genus Paper Products Limited ("GPPL"), and Genus Paper & Boards Limited ("GPBL"), GPIL has re-organized and segregated by way of a demerger, its business and undertaking engaged in manufacturing and trading of all kinds and classes of papers and boards, steel and the undertaking of managing, supervising, controlling and making non power investments to the company. All the assets and liabilities are transferred to the Company pursuant to order of the Hon'ble High Court of judicature at Allahabad dated 29.10.2013 and the same has been filed with the Registrar of Companies on 29.11.2013 and the appointed date as per the Scheme is 1st April 2011.

As per the said scheme;

a. All the properties, investments, assets and liabilities related to Paper & Boards, Steel and Non Power Investment undertaking/ divisions of GPIL are transferred and vested in the Company on a going concern basis with effect from 01.04.2011.

b. The said transfer has been affected at the values appearing in the books of GPIL and recorded as such in the books of account of the Company. The value of assets over liabilities as on that date aggregates to Rs. 2722499996.00.

c. In consideration of the demerger, the Company has issued and allotted 256625940 equity shares to the shareholders of GPIL in the ratio of one equity share of face value of Re.1/- each fully paid up in the Company for every one equity share of Re.1/- each fully paid up held by the shareholders of GPIL ranking pari passu with the existing equity shares of the Company save and except in relation to dividends, if any, to which they may be entitled to, as and from the Appointed Date. The New Equity Shares of the Company issued on Demerger shall, subject to completion of applicable procedures, be listed on the Bombay Stock Exchange Limited and the National Stock Exchange of India Limited and shall remain frozen in the depositories system till listing/trading permission is given by the Bombay Stock and the National Stock Exchange of India Limited. Consequent to the allotment of the new shares as per the Scheme, the Company has ceased to be the subsidiary of GPIL.

d. Excess of net assets so recorded over the amount of share capital issued amounting to Rs. 2465874056.00 is recognized in these financial statements, and as stipulated in the Scheme, is disclosed as a free reserve with the nomenclature "Business Reconstruction ReserveÂ.

6. Financial information of Subsidiary Companies as required by first proviso to section 129 (3) read with rule 5 of companies (Accounts) rule 2014 of the Companies Act,2013 for the year ended on 31.03.2015 are separately enclosed.

7. The previous year's figures have been reworked, regrouped, rearranged and reclassified wherever necessary.

Mar 31, 2014

Securities

1(a) Term oan from SBI -INR Rs. Nil (previous year Rs. Nil) are secured by exclusive first charge on entire fixed assets of the company j other than fixed assets of Paper & particle board division save and except assets charged to PNB to rank "pari-passu" between lenders at 2 and/ or 3 and further secured by securities mentioned at 2 below on "pari-passu" basis.

(b) The above facilities are further secured by first charge on Land, Building and Plant & machinery of steel division, land & building i of administrative block and residential colony save and except first "pari-passu" charge on certain personal assets of promoters and directors.

2. Term loan from PNB Rs.74217406.00 (previous year Rs. Nil ) are secured by hypothecation of Plant & Machinery, equipments, tools etc. (existing / future of paper & board division save and except assets charged to banks to rank pari- passu between lenders at 1.

3. Term loan of Rs. 451726.36 from HDFC Bank, (previous year Rs.Nil) are secured by hypothecation of vehicles._

4. Term loan of Rs. 48326.00 from State Bank of India (previous year Rs.Nil) are secured by hypothecation of vehicles.

5. Term loan of Rs. 2035467.00 from Punjab National Bank (previous year Rs.Nil) are secured by hypothecation of vehicles.

1(a) Working Capital Loan INR Rs. 222085488.63 (previous Year Rs. Nil) are secured by exclusive first charge by way of hypothecation of entire current assets (existing & future) including ail stocks & receivables pertaining to steel division and co-gen. power plant of the company save and except assets charged to PNB to rank pari-passu between lenders at 2. Further secured by securities mentioned at 2 beiow on pari-passu basis

(b) The above facilities are further secured by first charge on Land, Building and Piant & machinery of steei division , iand & building of administrative block and residential colony save and except first" pari-passu" charge on certain personal assets of promoters and directors.

2. Working Capital Loan from PNB Rs. 97222808.89 (previous Year Rs. Nil) are secured by hypothecation of entire current assets (present & future) of the Muiti-iayered kraft paper unit save and except assets charged to bank to rank " pari-passu" between ders at para 1.

NOTE CONTINENT LIABILITIES AND COMMITMENTS

31-03-14 31-03-13 Contingent Liabilities not provided for in respect of: (Rs. In lac) (Rs. In lac)

a. Guarantees given by the Bankers on behalf of the 118.92 - Company(Net of margin money)

b. Estimated amount of contract remaining to be - - executed on Capitai account(Net)

c. Letter of credit issued by Bank Net of Margin money) - -

d. Disputed demands under:

Sales Tax/Commercial Tax 17.45 -

Factories Act 2.00 -

Central Excise and Service Tax 38.34 -

NOTE 2

1. The entire equity share capital of the Company upto 10.1.2014 was owned by GPiL and its nominees, pursuant to which the Company was a wholly owned subsidiary of GPIL tNil that date. _

2. In terms of the scheme of arrangement under section 391 and 394 of the Companies Act, 1956 ("the Scheme) amongst Genus Power Infrastructures Limited ("GPIL"), the Company and Genus Paper Products Limited ("GPPL"), GPIL has re-organized and segregated by way of a demerger, its business and undertaking engaged in manufacturing and trading of all kinds and classes of papers and boards, steel and the undertaking of managing, supervising, controlling and making non power investments to the company. All the assets and liabilities are transferred to the Company pursuant to order of the Hon''ble High Court of judicature at Allahabad dated 29.10.2013 and the same has been filed with the Registrar of Companies on 29.11.2013 and the appointed date as per the Scheme is 1st April 2011.

As per the said scheme;

a. All the properties, investments, assets and liabilities related to Paper & Boards, Steel and Non Power Investment undertaking/divisions of GPIL are transferred and vested in the Company on a going concern basis with effect from 1.4.2011

b. The said transfer has been affected at the values appearing in the books of GPIL and recorded as such in the books of account of the Company. The value of assets over liabilities as on that date aggregates to Rs. 2722499996.00.

c. In consideration of the demerger, the Company has issued and allotted 256625940 equity shares to the shareholders of GPIL in the ratio of one equity share of face value of Re. 1/- each fully paid up in the Company for every one equity share of Re. 1/- each fully paid up held by the shareholders of GPIL ranking pari passu with the existing equity shares of the Company save and except in relation to dividends, if any, to which they may be entitled to, as and from the Appointed Date. The New Equity Shares of the Company issued on Demerger shall, subject to completion of applicable procedures, be listed on the Bombay Stock Exchange Limited and the National Stock Exchange of India Limited and shall remain frozen in the depositories system till listing/trading permission is given by the Bombay Stock and the National Stock Exchange of India Limited. Consequent to the allotment of the new shares as per the Scheme, the Company has ceased to be the subsidiary of GPIL._

d. Excess of net assets so recorded over the amount of share capital issued amounting to Rs. 2465874056.00 is recognized in these financial statements, and as stipulated in the Scheme, is disclosed as a free reserve with the nomenclature "Business Reconstruction Reserve". _

e. As and from the Appointed Date and up to and including the Effective Date, GPPL (in relation to Paper & Boards and Steel Undertaking) and GPIL (in relation to Non Power Investment Undertaking) are deemed to have been carrying on all the business and activities on behalf of the Company and the profit for this period (Net of taxes, Deferred Tax and Minimum Alternate Tax credit) amounting to Rs. 200039100.35 is recognized in these financial statements as the profits and taxes of the Company.

NOTE 3

Financial information of Subsidiary Companies as required by order No. 47/355/2010-CL-lll dated 14th May, 2010 of the j Ministry of Corporate Affairs, Government of India, issued under section 212 (8) of the Companies Act, 1986 for the financial j year 2013-14 are separately enclosed.

1. The previous year''s figures have been reworked, regrouped, rearranged and reclassified wherever necessary.

2. The figures of current year incorporate the transactions specified in the scheme of arrangement as explained in Note no. 34 supra, which has vested with the company, and are therefore not compareable with those of the previous year.

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