Home  »  Company  »  Greenply Industr  »  Quotes  »  Accounting Policy
Enter the first few characters of Company and click 'Go'

Accounting Policies of Greenply Industries Ltd. Company

Mar 31, 2017

1.01 DISCLOSURE OF ACCOUNTING POLICIES:

1.01.01 CORPORATE INFORMATION:

Greenply Industries Limited (the ''Company'') is a public limited company domiciled in India incorporated under the provisions of the Companies Act. Its shares are listed on two recognised stock exchanges in India.The registered office of the company is located at Makum Road, P.O.Tinsukia, Assam - 786 125, India.

Company is engaged in the business of manufacturing plywood and allied products, medium density fibre boards and allied products through its factories at various locations. Company is also engaged in trading of walkovers and allied products. It has branches and dealers'' network spread all over the country. The Company imports raw materials for manufacturing and also finished goods for trading. Manufactured goods are sold both in domestic and overseas markets.

Company has three overseas wholly owned subsidiary companies viz. (a) Greenply Trading Pte. Ltd., subsidiary of the Company based out of Singapore, operates as an investment vehicle and has invested into a Joint Venture Company viz. Greenply Alkemal (Singapore) Pte. Ltd., which is also based out of Singapore. Greenply Trading Pte. Ltd. is also engaged into trading of Medium Density Fibreboards and allied products; (b) Greenply Holdings Pte. Ltd., subsidiary of the Company based out of Singapore has been incorporated during the year, (c) Greenply Middle East Ltd., subsidiary of the Company based out of Dubai has been incorporated during the year as an investment vehicle and has invested into a wholly owned subsidiary company viz. Greenply Gabon SA, Gabon, West Africa.

1.01.02 BASIS OF PREPARATION OF FINANCIAL STATEMENTS:

The Financial Statements have been

prepared in accordance with Indian Accounting Standards (Ind AS) notified under the Companies (Indian Accounting Standards) Rules, 2015.

The Financial Statements upto year ended 31 March 2016 were prepared in accordance with accounting standards notified under the Company (Accounting Standards) Rules 2006 read with Rule 7(1) of the Companies (Accounts) Rules, 2014 and the provisions of the Companies Act, 2013 (hereinafter referred to as the ''previous GAAP'').

These Financial Statements are the first financial statements of the company under Ind AS - the transition date being 1 April 2015. The information as to how the company has adopted Ind AS and the impact thereof on Company''s financial position,financial performance and cash flows is presented in notes to financial statements.

The financial statements have been prepared underthe historical cost basis, except for the following assets and liabilities which has been measured at fair value, (i) Quoted Investments in Equity Shares, (ii) Derivative financial instruments, (iii) Biological Assets -Clonal Plantation.

Accounting policies have been consistently applied except where a newly issued accounting standard is initially adopted or a revision to an existing accounting standard requires a change in the accounting policy hitherto in use. The Company''s management evaluates all recently issued or revised accounting standards on an on-going basis.

The financial statements are presented in Indian Rupees (''INR'') and all values are rounded to the nearest lacs, except otherwise indicated. Where changes are made in presentation, the comparative figures of the previous

year are regrouped and re-arranged accordingly.

1.01.03 ACCOUNTING ESTIMATES AND ASSUMPTIONS:

The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent liabilities at the date of the financial statements and the results of operations during the reporting year end. Although these estimates are based upon management''s best knowledge of current events and actions, actual results could differ from these estimates.

1.02 PROPERTY, PLANT AND EQUIPMENT:

1.02.01 Property, Plant and Equipment are stated at original cost (net of tax/ duty credit availed) less accumulated depreciation and impairment losses except freehold land which is carried at cost. Cost includes cost of acquisition, construction and installation, taxes, duties, freight, other incidental expenses related to the acquisition, trial run expenses (net of revenue) and pre-operative expenses including attributable borrowing costs incurred during pre-operational period.

1.02.02Subsequent costs are included in the asset''s carrying amount or recognised as a separate asset, as appropriate, only when it is probable that future economic benefits associated with the item will flow to the company and the cost of the item can be measured reliably. The carrying amount of any component as a separate asset is derecognised when replaced. All other repairs and maintenance are charged to profit and loss during the reporting period in which they are incurred.

1.02.03 Assets which are not ready for their intended use on reporting date are

carried as capital work-in-progress at cost, comprising direct cost and related incidental expenses.

1.02.04 On transition to Ind AS, the Company has elected to continue with the carrying value of all of its property, plant and equipment as at 1st April 2015 measured as per the previous GAAP and use that carrying value as the deemed cost ofthe property, plant and equipment.

1.02.05The Company has exercised the option available to it under Rule 46A of the Companies (Accounting Standards) (Second Amendment) Rules, 2011 in respect of accounting for fluctuations in foreign exchange relating to "Long Term Foreign Currency Monetary Items". On transition to Ind AS, aforesaid option is not available for loans availed after 1st April 2016.

1.02.06 Property, Plant and Equipments including continuous process plants are depreciated and/or amortised on the basis of their useful lives as notified in Schedule II to the Companies Act, 2013 except in case of assets costing less than Rs, 5000 which are depreciated over their useful life as assessed by the management. The assets'' residual values and useful lives are reviewed, and adjusted if appropriate, at the end of each reporting period.

Depreciation in respect of additions to assets has been charged on pro rata basis with reference to the period when the assets are ready for use. The provision for depreciation for multiple shifts has been made in respect of eligible assets on the basis of operation of respective units. Where the historical cost of a depreciable asset undergoes a change due to increase or decrease in long term liability on account of exchange fluctuations, the depreciation on the revised unamortised depreciable amount is provided prospectively over the residual useful life ofthe asset.

1.02.07 An asset''s carrying amount is written down immediately on discontinuation to its recoverable amount if the asset''s carrying amount is greater than its estimated recoverable amount. Gains and losses on disposals are determined by comparing proceeds with carrying amount. These are included in Profit/ Loss on Sale and Discard of Fixed Assets.

1.02.08 Useful lives of the Property, Plant and Equipment as notified in Schedule II to the Companies Act, 2013 are as follows:

Buildings - 3 to 60 years

Plant and Equipments -15 to 25 years

Furniture and Fixtures -10 years

Vehicles-8 to 10 years

Office Equipments - 5 to 10 years

1.02.09 At each balance sheet date, the Company reviews the carrying amount of property, plant and equipment to determine whether there is any indication of impairment loss. If any such indication exists, the recoverable amount of the assets is estimated in order to determine the extent of impairment loss. The recoverable amount is higher ofthe net selling price and the value in use, determined by discounting the estimated future cash flows expected from the continuing use ofthe asset to their present value.

1.03 INTANGIBLE ASSETS:

1.03.01 Internally generated intangible asset under development stage is recognized when it is demonstrated that it is technically feasible to use the same and the cost incurred for developing the same is ascertained. Technical Know-how so developed internally is amortised on a straight- line basis over its estimated useful life.

1.03.02 Intangible assets acquired by payment e.g.. Goodwill, Trademarks, Computer Software and Technical Know-how are disclosed at cost less amortization on a straight-line basis over its estimated useful life.

1.03.03 Intangible assets are carried at cost, net of accumulated amortization and impairment loss, if any.

1.03.04On transition to Ind AS, the Company has elected to continue with the carrying value of all of its intangible assets as at 1st April 2015 measured as per the previous GAAP and use that carrying value as the deemed cost of the intangible assets.

1.03.05 Intangible assets are amortised on straight-line method as follows:

Goodwill - 5 years Trademarks -10 years Computer Software - 5 years Technical Know-how - 3 years

1.03.06At each balance sheet date, the Company reviews the carrying amount of intangible assets to determine whether there is any indication of impairment loss. If any such indication exists, the recoverable amount of the assets is estimated in order to determine the extent of impairment loss. The recoverable amount is higher of the net selling price and the value in use, determined by discounting the estimated future cash flows expected from the continuing use of the asset to their present value.

1.04 INVENTORIES:

1.04.01 The cost of inventories have been computed to include all cost of purchases, cost of conversion and other related costs incurred in bringing the inventories to their present location and condition. The costs of Raw Materials, Stores and spare parts etc., consumed consist of purchase price including duties and taxes (other than those subsequently recoverable by the enterprise from the taxing authorities), freight inwards and other expenditure directly attributable to the procurement.

1.04.02 Excise Duty on finished goods stock lying at the factories is accounted for at the point of manufacture of goods and accordingly, is considered for valuation of finished goods lying in the factories as on the Balance Sheet date. Similarly, Custom Duty on imported material in transit/lying in bonded warehouse is accounted for at the time of import/ bonding of materials.

1.04.03 Stock of Raw Materials, Stores and spare parts are valued at lower of cost or net realisable value; and of those in transit and at port related to these items are valued at lower of cost to date or net realisable value. Slow and non-moving material, obsolete, defective inventories are duly provided for and valued at net realisable value. Goods and materials in transit are valued at actual cost incurred upto the date of balance sheet. Material and supplies held for use in the production of inventories are not written down if the finished products in which they will be used are expected to be sold at or above cost.

1.04.04Goods-in-process is valued at lower of cost or net realisable value.

1.04.05 Stock of Finished goods is valued at lower of cost or net realisable value.

1.04.06 Stock-in-trade is valued at lower of cost or net realisable value.

1.04.07Waste and scraps are accounted at estimated realisable value.

1.04.08 Cost of inventories is ascertained on the''weighted average'' basis. Goods-in-process and finished goods are valued on absorption cost basis.

1.05 CASH FLOW STATEMENT:

1.05.01 Cash flows are reported using indirect method, whereby profit before tax is adjusted for the effects of transactions of a non-cash nature and any deferrals or accruals of past or future cash receipts or payments. The cash flow from regular revenue generating, financing and investing activities ofthe Company is segregated.

1.05.02 Cash and cash equivalents in the balance sheet comprise cash at bank, cash/cheques in hand and short term investments (excluding pledged term deposits) with an original maturity of three months or less.

1.06 FINANCIAL ASSETS:

1.06.01 The Company classifies its financial assets as those to be measured subsequently at fair value (either through other comprehensive income, or through profit or loss), and those to be measured at amortised cost.

1.06.02The Company measures all equity instruments in subsidaries at cost initially and also on subsequent recognition.

1.06.03The Company measures all quoted equity instruments other than in subsidaries at fair value on initial and subsequent recognition. Changes in fair value of quoted investments in equity shares are shown as profit/loss on fair valuation of investments in Statement of Profit and Loss.

1.06.04Trade receivables represent receivables for goods sold by the Company upto to the end of the financial year. The amounts are generally unsecured and are usually received as per the terms of payment agreed with the customers. The amounts are presented as current assets where receivable is due within 12 months from the reporting date. They are recognised initially and subsequently measured at amortised cost.

1.06.05 The Company assesses the expected credit losses associated with its assets carried at amortised cost. Trade receivables are impaired using the lifetime expected credit loss model under simplified approach. The Company uses a provision matrix to determine the impairment loss allowance based on its historically observed default rates over expected life of trade receivables and is adjusted for forward looking estimates. At every reporting date, the provision for such impairment loss allowance is determined and updated and the same is deducted from Trade Receivables with corresponding charge/credit to Profit and Loss.

1.06.06 A financial asset is derecognised only when the Company has transferred the rights to receive cash flows from the financial asset, or when it has transferred substantially all the risks and rewards ofthe asset, or when it has transferred the control ofthe asset.

1.06.07 Investments that are readily realisable and intended to be held for not more than a year are classified as Current investments. All other investments are classified as Non-Current/Long-term Investments. Current investments are carried at lower of cost or market value on individual investment basis. Non-Current Investments are considered at cost, unless there is an "other than temporary" decline in value, in which case adequate provision is made for the diminution in the value of Investments.

1.07 FINANCIAL LIABILITIES:

1.07.01 Borrowings are initially recognised and subsequently measured at amortised cost, net of transaction costs incurred. The transaction costs is amortised over the period of borrowings using the effective i nterest method i n Ca pita I Work in Progress upto the commencement of related Plant, Property and Equipment and subsequently under finance costs in profit and loss account.

1.07.02 Borrowings are removed from balance sheet when the obligation specified in the contract is discharged, cancelled or expired.

1.07.03 Borrowings are classified as current liabilities unless the company has an unconditional right to defer settlement of the liability for at least 12 months after the reporting period.

1.07.04 Trade Payables represent liabilities for goods and services provided to the Com pa ny u pto totheendofthefinancial year.The amounts are unsecured and are usually paid as per the terms of payment agreed with the vendors. The amounts are presented as current liabilities unless payment is not due within 12 months after the reporting period. They are recognised initially and subsequently measured at amortised cost.

1.07.05 Financial assets and Financial liabilities are offset and the net amount is reported in the balance sheet if there is a currently enforceable legal right to offset the recognised amounts and there is an intention to settle on a net basis, to realise the assets and settle the liabilities simultaneously.

1.07.06 Derivative financial instruments are in the nature of Forward contracts and Interest rate swaps. Forward contracts are executed to hedge the foreign exchange rate with respect to liabilities for goods and services in foreign currencies. Interest rate swaps are executed to hedge the interest rate with respect to borrowings in foreign currencies.

1.07.07 Derivative financial instruments are recognised initially and subsequently at fair value through mark to market valuation obtained from banking partners. Gain or loss arising from the changes in fair value of derivatives are debited to the foreign exchange fluctuations in the statement of profit and loss.

1.08 EQUITY:

1.08.01 Equity Shares are classified as equity. Incremental costs directly attributable to the issue of new shares are shown in equity as a deduction from the proceeds.

1.08.02 Provision is made for the amount of any dividend declared and dividend distribution tax thereon, being appropriately authorised and no longer at the discretion of the entity, on or before the end ofthe reporting period but not distributed at the end of the reporting period.

1.08.03The share issue expenses and expenses related to Scheme of Arrangement are written off in five equal annual installments in accordance with the provisions of Section 35DD of the IncomeTax Act, 1961. In case, where the specific amortisation is not stipulated in the scheme or agreement, such expenses are charged in the year in which it is incurred.

1.09 REVENUE RECOGNITION:

1.09.01 Revenue comprises of all economic benefits that arise in the ordinary course of activities of the Company which result in increase in Equity, other than increases relating to contributions from equity participants. Revenue is recognized to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured. Revenue is measured at the fair value of the consideration received or receivable.

1.09.02 Sale of Goods: Revenue from sales of goods is recognised on transfer of significant risks and rewards of ownership to the customers. Revenue shown in the Statement of Profit and Loss are inclusive of Excise Duty and the value of self-consumption, but excludes inter-transfers, returns, trade discounts, cash discounts, other benefits passed to customers in kind, value added tax and central sales tax. Excise Duty expense has been disclosed in Statement of Profit and Loss as expenditure.

1.09.03 Services: Revenue from Services are recognized as and when the services are rendered. The Company collects service tax on behalf of the government and therefore, it is not an economic benefit flowing to the Company and hence excluded from Revenue.

1.09.04 Interest: Interest income is accrued on a time basis, by reference to the principal outstanding and at the effective interest rate applicable.

1.09.05 Dividends: Dividend from investment is recognized when the Company in which they are held declares the dividend and when the right to receive the same is established.

1.09.06Insurance Claims: Insurance Claims are accounted for on acceptance and when there is a reasonable certainty of receiving the same, on grounds of prudence.

1.10 FOREIGN CURRENCY TRANSACTIONS:

1.10.01 The Company''s financial statements are presented in Indian Rupees (''INR''), which is also the Company''s functional currency.

1.10.02 Foreign currency transactions are recorded on initial recognition in the functional currency, using the exchange rate at the date of the transaction. At each balance sheet date, foreign currency monetary items are reported using the closing exchange rate. Exchange differences that arise on settlement of monetary items or on reporting at each balance sheet date of the Company''s monetary items at the closing rate are recognised as income or expenses in the period in which they arise.

1.10.03 Non-monetary items which are carried at historical cost denominated in a foreign currency are reported using the exchange rate at the date of the transaction. Non-monetary items measured at fair value in a foreign currency are translated using the exchange rate at the date when the fair value is determined.

1.11 EMPLOYEE BENEFITS:

1.11.01 Short-term employee benefits are recognized as an expense at the undiscounted amount in the Statement of Profit and Loss of the year in which the related service is rendered.

1.11.02 Post Employment and Retirement benefits in the form of Gratuity and Leave Encashment are considered as defined benefit obligations and is provided for on the basis of third party actuarial valuation, using the projected unit credit method, as at the date of the Balance Sheet. 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.

1.11.03 The present value ofthe defined benefit obligation is determined by discounting the estimated future cash outflows by reference to market yields at the end of reporting period on government bonds that have terms approximating to the terms ofthe related obligation.

1.11.04The net interest cost is calculated by applying the discount rate to the net balance of the defined benefit obligation. This cost is included in employee benefit expense in the statement of profit and loss.

1.11.05 Remeasurement gains and losses arising from experience adjustments and changes in acturial assumptions of the defined benefit obligation are recognised in the period in which they occur, directly in other comprehensive income. They are included in retained earnings in the statement of changes in equity and in the balance sheet.

1.11.06 Employee benefits in the form of Provident Fund is considered as defined contribution plan and the contributions to Employees'' Provident Fund Organisation established under The Employees'' Provident Fund and Miscellaneous Provisions Act 1952 is charged to the Statement of Profit and Loss of the year when the contributions to the respective funds are due. The Company pays provident fund contributions to publicly administered providentfundsas per local regulations. The Company has no further payment obligations once the contributions have been paid.

1.12 BORROWING COSTS:

1.12.01 Borrowing costs are interest and other costs (including exchange differences relating to foreign currency borrowings to the extent that they are regarded as an adjustment to interest costs) incurred in connection with the borrowing of funds. Ancillary costs incurred in connection with the arrangement of borrowings are amortised over the period of borrowings.

1.12.02 General and specific borrowing costs that are directly attributable to the acquisition or construction of qualifying assets are capitalised as part of the cost of such assets during the period of time that is required to complete and prepare the asset for its intended use. A qualifying asset is one that takes necessarily substantial period of time to get ready for its intended use.

1.12.03 Investment income earned on temporary investment of specific borrowings pending their expenditure on qualifying assets is deducted from the borrowings costs eligible for capitalisation.

1.12.04 All other borrowing costs are expensed in the period in which they are incurred.

1.13 SEGMENT REPORTING:

1.13.01 Operating Segments are reported in a manner consistent with the internal reporting provided to the chief operating decision maker (CODM). The CODM assesses the financial performance and position of the company, and makes strategic decisions. The CODM consists of the Executive Chairman, Managing Director, Joint Managing Director & CEO and Chief Financial Officer.

1.13.02 The Company''s operating businesses are organized and managed separately according to the nature of products, with each segment representing a strategic business unit that offers different products and serves different markets. The identified segments are Manufacturing and Sale of (a) Plywood and Allied products; and (b) Medium Density Fibre Boards and Allied products.

1.13.03The analysis of geographical segment is based on the geographical location of the customers. The geographical segments considered for disclosure are (a) Sales within India include sales to customers located within India; (b) Sales outside India include sales to customers located outside India.

1.13.04 Common allocable costs are allocated to each segment according to the ratio of their respective turnover to the total turnover.

1.13.05The Unallocated Segment includes general corporate income and expense items, which are not allocated to any business segment.

1.14 RELATED PARTY TRANSACTIONS:

1.14.01 A related party is a person or entity that is related to the reporting entity preparing its financial statements

(a) A person or a close member of that person''s family is related toa reporting entity if that person; (i) has control or joint control of the reporting entity; (ii) has significant influence over the reporting entity; or (iii) is a member

ofthe key management personnel of the reporting entity or of a parent of the reporting entity.

(b) An entity is related to a reporting entity if any of the following conditions applies; (i) the entity and the reporting entity are members of the same group (which means that each parent, subsidiary and fellow subsidiary is related to the others); (ii) One entity is an associate or joint venture of the other entity (or an associate orjointventureofa member of a group of which the other entity is a member); (iii) Both entities are joint ventures of the same third party;

(iv) One entity is a joint venture of a third entity and the other entity is an associate of the third entity; (v) The entity is a post-employment benefit plan for the benefit of employees of either the reporting entity or an entity related to the reporting entity;

(vi) The entity is controlled or jointly controlled by a person identified in (a); (vii) A person identified in (a)

(i) has significant influence over the entity or is a member of the key management personnel of the entity (or of a parent ofthe entity); (viii) The entity, or any member of a group of which it is a part, provides key management personnel services to the reporting entity or to the parent ofthe reporting entity.

1.14.02 A related party transaction is a transfer of resources, services or obligations between a reporting entity and a related party, regardless of whether a price is charged.

Close members ofthe family of a person are those family members who may be expected to influence, or be influenced by, that person in their dealings with the entity.

Compensation includes all employee benefits i.e. all forms of consideration paid, payable or provided by the entity.

or on behalf of the entity, in exchange for services rendered to the entity. It also includes such consideration paid on behalf of a parent of the entity in respect ofthe entity.

Key management personnel are those persons having authority and responsibility for planning, directing and controlling the activities of the entity, directly or indirectly, including any director (whether executive or otherwise) of that entity.

1.14.03 Disclosure of related party transactions as required by the accounting standard is furnished in the Notes on Financial Statements.

1.15 LEASES:

1.15.01 The determination of whether an arrangement is, or contains a lease is based on the substance of the arrangement at the inception date, whether fulfillment ofthe arrangement is dependent on the use of a specific asset or assets or the arrangement conveys a right to use the asset, even if that right is not explicitly specified in the arrangement.

1.15.02 Finance leases that transfer substantially all of the risks and benefits incidental to ownership of the leased term, are capitalised at the commencement of the lease at the fair value ofthe leased property or, if lower, at the present value of the minimum lease payments. Lease payments are apportioned between finance charges and a reduction in lease liability so as to acheive a constant rate of interest on the remaining balance of the liability. Finance charges are recognised in finance costs in the statement of profit and loss.

1.15.03 A leased asset is depreciated over the useful life of the asset. However, if there is no reasonable certainty that the Company will obtain ownership by the end of the lease term, the asset is depreciated over the shorter of the estimated useful life of the asset and the lease term.

1.15.04 Assets acquired on leases where a significant portion of the risks and rewards of ownership are retained by lessor are classified as operating leases. Lease rentals are charged to the statement of profit and loss on straight line basis.

1.15.05 Other Current assets includes prepaid lease rentals on account of initial payment with respect to leasehold land for manufacturing units. The same being operating lease in nature, is amortised as an expense over the period of lease.

1.16 EARNINGS PER SHARE:

1.16.01 Basic earnings (loss) per share are calculated by dividing the net profit or loss for the period attributable to equity shareholders by the weighted average number of equity shares outstanding during the period.

1.16.02 For the purpose of calculating diluted earnings per share, the net profit or loss for the period attributable to equity shareholders and the weighted average number of shares outstanding during the period are adjusted for the effects of all dilutive potential equity shares.

1.17 ACCOUNTING FORTAXESON INCOME:

1.17.01 Tax expenses comprise of current tax and deferred tax including applicable surcharge and cess.

1.17.02 Current Income tax is computed using the tax effect accounting method, where taxes are accrued in the same period in which the related revenue and expenses arise. A provision is made for income tax annually, based on the tax liability computed, after considering tax allowances and exemptions. Provisions are recorded when it is estimated that a liability due to disallowances or other matters is probable.

1.17.03 Deferred tax is provided using the balance sheet approach on temporary differences at the reporting date between the tax bases of assets and liabilities and their carrying amounts for financial reporting purposes at the reporting date. Deferred tax liabilities are recognised forall taxable temporary differences. Deferred tax assets are recognised forall deductible temporary differences, the carryforward of unused tax credits and any unused tax losses. Deferred tax assets are recognised to the extent that it is probable that taxable profits against which the deductible temporary differences, and the carry forward unused tax credits and unused tax losses can be utilised.

The carrying amount of deferred tax assets is reviewed at each reporting date and reduced to the extent that it is no longer probable that sufficient taxable profit will be available to allow all or part of the deferred tax assets to be utilised. Unrecognised deferred tax assets are reassessed at each reporting date and are recognised to the extent that it is become probable that future taxable profits will allow the deferred tax asset to be recovered. Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the year when the asset is realised or the liability is settled, based on the tax rates and tax laws that have been enacted or substantively enacted at the reporting date.

Deferred tax is recognised in the statement of profit and loss, except to the extent that it relates to items recognised in other comprehensive income. As such, deferred tax is also recognised in other comprehensive income.

Deferred Tax Assets and Deferred Tax Liabilities are offset, if a legally enforceable right exists to set off current tax assets against current tax liabilities and the Deferred Tax Assets and Deferred Tax Liabilities relate

to taxes on income levied by same governing taxation laws.

1.17.04 MAT (Minimum Alternate Tax) credit is recognised as an asset only when and to the extent there is convincing evidence that the Company will pay normal income tax during the specified period. In the year in which the MAT credit becomes eligible to be recognized as an asset in accordance with the recommendations contained in guidance Note issued by the Institute of Chartered Accountants of India, the said asset is created by way of a credit to the Statement of Profit and Loss and shown as MAT Credit Entitlement. The Company reviews the same at each balance sheet date and writes down the carrying amount of MAT Credit Entitlement to the extent there is no longer convincing evidence to the effect that Company will pay normal IncomeTax during the specified period.

1.18 PROVISIONS, CONTINGENT LIABILITIES

AND CONTINGENT ASSETS:

1.18.01 Provisions are made when (a) the Company has a present legal or constructive obligation as a result of past events; (b) it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation; and (c) a reliable estimate is made of the amount of the obligation.

1.18.02Contingent liabilities are not provided for but are disclosed by way of Notes on Accounts. Contingent liabilities is disclosed in case of a present obligation from past events (a) when it is not probable that an outflow of resources will be required to settle the obligation;

(b) when no reliable estimate is possible; (c) unless the probability of outflow of resources is remote.

1.18.03Contingent assets are not accounted but disclosed by way of Notes on Accounts where the inflow of economic benefits is probable.

1.19 CURRENT AND NON-CURRENT

CLASSIFICATION:

1.19.01 The Normal Operating Cycle for the Company has been assumed to be of twelve months for classification of its various assets and liabilities into "Current"and "Non-Current".

1.19.02The Company presents assets and liabilities in the balance sheet based on current and non-current classification.

1.19.03 An asset is current when it is (a) expected to be realised or intended to be sold or consumed in normal operating cycle; (b) held primarily for the purpose of trading; (c) expected to be realised within twelve months after the reporting period; (d) Cash and cash equivalent unless restricted from being exchanged or used to settle a liability for at least twelve months after the reporting period. All other assets are classified as non-current.

1.19.04An liability is current when (a) it is expected to be settled in normal operating cycle; (b) it is held primarily for the purpose of trading; (c) it is due to be discharged within twelve months after the reporting period; (d) there is no unconditional right to defer the settlement of the liability for at least twelve months after the reporting period. All other liabilities are classified as non-current.

1.20 FAIR VALUE MEASUREMENT:

1.20.01 The Company measures financial instruments such as derivatives and certain investments, at fair value at each balance sheet date.

1.20.02 Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The fair value measurement is based on the presumption that the transaction to sell the asset or transfer the liability takes place either in the principal market for the asset or liability, or in the absence of a principal market, in the most advantageous market for the asset or liability. The principal or the most advantageous market must be accessible by the Company.

1.20.03 The fair value of an asset or liability is measured using the assumptions that market participants would use when pricing the asset or liability, assuming that market participants act in their economic best interest.

1.20.04A fair value measurement of a non-financial asset takes into account a market participant''s ability to generate economic benefits by using the asset in its highest and best use or by selling it to another market participant that would use the asset in its highest and best use.

1.20.05 The Company uses valuation techniques that are appropriate in the circumstances and for which sufficient data are available to measure fair value, maximising the use of relevant observable inputs and minimising the use of unobservable inputs.

1.20.06The assets and liabilities which has been measured at fair value are, (i) Quoted Investments in Equity Shares,

(ii) Derivative financial instruments, (iii) Biological Assets - Clonal Plantation.

1.21 NON-CURRENT ASSETS HELD FOR SALE

AND DISCONTINUED OPERATIONS:

1.21.01 Non-current assets and disposal groups are classified as held for sale if their carrying amounts will be recovered principally through a sale transaction rather than through continuing use.

1.21.02 Non-current assets and disposal groups classified as held for sale are measured at the lower of carrying amount and fair value less cost to sell. This condition is regarded as met only when the sale is highly probable and the asset or disposal group is available for

immediate sale in its present condition. Management must be committed to the sale, which should be expected to qualify for recognition as a completed sale within one year from the date of classification.

1.21.03 Non-current assets classified as held for sale are presented separately from other assets in the balance sheet. An entity shall not depreciate or amortise a non-current asset after such asset has been classified as held for sale.

1.21.04 Discontinued operations are excluded from the results of continuing operations and are presented as a single amount as profit or loss after tax from discontinued operations in the statement of profit and loss.

1.21.05 A disposal group qualifies as discontinued operation if it is a component ofthe Company that either has been disposed of, or is classified as held for sale, and; (a) represents a separate major line of business or geographical area of operations; (b) is part of a single co-ordinated plan to dispose of a seperate major line of business or geographical area of

operations; (c) is a subsidiary acquired exclusively with a view to resale.

1.22 BIOLOGICAL ASSETS:

1.22.01 Biological Assets are Clonal Plants being initially and subsequently measured at fair value.

1.23 EXPENSES FOR CORPORATE SOCIAL

RESPONSIBILITY:

1.23.01 In case of CSR activities undertaken by the Company, if any expenditure of revenue nature is incurred or an irrevocable contribution is made to any agency to be spent by the latter on any ofthe activities mentioned in Schedule VII to the Companies Act, 2013, the same is charged as an expense to its Statement of Profit and Loss.

1.23.02 In case, the expenditure incurred by the Company is of such a nature which gives rise to an asset, such an asset is recognised where the Company retains the control of the asset and any future economic benefit accrues to it. A liability incurred by entering into a contractual obligation is recognised to the extent to which CSR activity is completed during the year.

13.4 Terms/Rights attached to the Equity Shares

The Company has only one class of equity Shares having a 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 ofthe shareholders in the ensuing Annual General Meeting.

The Company has proposed dividend as distribution to equity shareholders @ Rs, 0.60 per equity share (Previous year @ Rs, 0.60 per equity share)

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

13.6 The Company has not reserved any shares for issue under options and contracts/commitments for the sale of shares/ disinvestment.

13.7 The Company for the period of five years immediately preceding the date of Balance Sheet has not:

i. Allotted any class of shares as fully paid pursuant to contract(s) without payment being received in cash.

ii. Allotted fully paid up shares by way of bonus shares.

iii. Bought back any class of shares.

13.8 During the year, the Company has raised Rs, 5000 lacs through Qualified Institutional Placement (QIP) of Equity Shares. By making temporary investments of surplus funds into fixed deposits with banks and investments in mutual funds, the Company has earned Rs, 48.23 lacs as interest / income therefrom. The company has fully utilised Rs, 5048.23 lacs for the purposes for which the fund were so raised i.e. setting-up of new MDF manufacturing unit in Chittoor, Andhra Pradesh.

15.1 (a) Term Loan from LandesbankBaden-Wurttenberg ofRs, 1361.89 lacs is secured by exclusive charge on Main Press

Line of MDF plant at Pantnagar, Uttarakhand.

(b) Term Loan from Landesbank Baden-Wurttenberg of Rs, 17814.91 lacs availed during the year is secured by exclusive charge on Main Press Line of MDF plant at Chittor, Andhra Pradesh along with any other movable fixed assets financed by LandesbankBaden-Wurttenberg.

(c) Other Term Loans of Rs, 9559.98 lacs are secured by:

(i) First pari passu charge on immovable fixed assets of the Company at Kriparampur (West Bengal), Pantnagar (Uttarakhand) and Chittoor (Andhra Pradesh).

(ii) First pari passu charge on all movable fixed assets ofthe Company except assets specifically charged to other lender(s) (including the main press line of MDF plant at Pantnagar (Uttarakhand) and main press line of MDF plant at Chittor (Andhra Pradesh) along with any other movable fixed assets exclusively charged to Landesbank Baden-Wurttenberg.

(iii) Second pari passu charge on all current assets ofthe Company.

15.2 Secured Deferred payment liabilities are in respect of finance of vehicles, secured by hypothecation ofthe respective vehicles.

* Represents Current Maturities of Long Term Borrowings.

15.4 The company has not defaulted in repayment of loans and interest during the year.

15.5 During the year, the Company has raised Rs, 21115.36 lacs by way of term loans from Banks. The company has utilised Rs, 18509.36 lacs for the purposes for which the term loans were so raised i.e. setting-up of new MDF manufacturing unit in Chittoor, Andhra Pradesh and the balance amount ofRs, 2606 lacs is unutilised.

19.1 Working Capital Loans of Rs,3405.70 lacs are secured by:

(i) First pari passu charge on all current assets ofthe Company.

(ii) Second pari passu charge on immovable fixed assets of the Company at Kriparampur (West Bengal), Pantnagar (Uttarakhand) and Chittoor (Andhra Pradesh).

(iii) Second pari passu charge on all movable fixed assets of the Company except assets specifically charged to other lender(s) (including the main press line of MDF plant at Pantnagar (Uttarakhand) and main press line of MDF plant at Chittoor (Andhra Pradesh) along with any other movable fixed assets exclusively charged to Landesbank Baden-Wurttenberg).

19.2 The company has not defaulted in repayment of loans and interest during the year.


Mar 31, 2016

1.00 SIGNIFICANT ACCOUNTING POLICIES:

1.01 Disclosure of Accounting Policies (AS-1):

1.01.01 Nature of Operation

Company is engaged in the business of manufacturing plywood and allied products, medium density fiber boards and allied products through its factories at various locations. It has branches and dealers'' network spread all over the country. It has an overseas wholly owned subsidiary company. The Company imports raw materials for manufacturing and also finished goods for trading. Manufactured goods are sold both in domestic and overseas markets.

The Company has a wholly owned subsidiary company viz. Green ply Industries (Myanmar) Pvt. Ltd., which was engaged in manufacturing of products which constitutes raw materials to the Company and provided the same to Company and others. During the year, the Company transferred its entire shareholding in the said subsidiary to Green ply Alkemal (Singapore) Pte. Ltd., Singapore (a Joint Venture Company of Green ply Industries Limited, India through its wholly owned subsidiary Green ply Trading Pte. Ltd., Singapore and Alkemal Singapore Pte. Ltd., Singapore). Accordingly, Green ply Industries (Myanmar) Pvt. Ltd. has ceased to be a subsidiary company of Green ply Industries Limited with effect from 01 October 2015.

Green ply Trading Pte. Ltd., subsidiary of the Company operates as an investment vehicle and has invested into a Joint Venture Company viz. Green ply Alkemal (Singapore) Pte. Ltd., based out of Singapore. It is also engaged into trading of Medium Density Fibreboards & allied products.

1.01.02 Accounting Concepts & Basis of Presentation

The financial Statements are prepared in accordance with the Indian Generally Accepted Accounting Principles (GAAP) under the historical cost convention on the accrual basis. GAAP comprises mandatory accounting standards as specified in the Company (Accounting Standards) Rules 2006 read with Rule 7(1) of the Companies (Accounts) Rules, 2014 and the provisions of the Companies Act, 2013. Accounting policies have been consistently applied except where a newly issued accounting standard is initially adopted or a revision to an existing accounting standard requires a change in the accounting policy hitherto in use. The Company''s management evaluates all recently issued or revised accounting standards on an on-going basis.

The Normal Operating Cycle for the Company has been assumed to be of twelve months for classification of its various assets and liabilities into “Current” and “Non-current”.

Where changes are made in presentation, the comparative figures of the previous year are regrouped and re-arranged accordingly.

1.01.03 Use of Estimates:

The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent liabilities at the date of the financial statements and the results of operations during the reporting period end. Although these estimates are based upon management''s best knowledge of current events and actions, actual results could differ from these estimates.

1.02 Valuation of Inventories (AS-2):

1.02.01 Stock of Raw Materials, Stores and spare parts are valued at lower of cost or net realizable value; and of those in transit and at port related to these items are valued at lower of cost to date or net realizable value.

1.02.02 Goods-in-process is valued at lower of cost or net realizable value.

1.02.03 Stock of Finished goods is valued at lower of cost or net realizable value.

1.02.04 Stock-in-trade is valued at lower of cost or net realizable value.

1.02.05 Waste and scraps are accounted at estimated realizable value.

1.02.06 Cost of inventories is ascertained on the ‘weighted average'' basis. Goods-in-process and finished goods are valued on absorption cost basis.

1.02.07 Growing Crops and Clonal Plants are valued at lower of cost or net realizable value.

1.03 Cash Flow Statement (AS - 3):

Cash flows are reported using indirect method, whereby profit before tax is adjusted for the effects of transactions of a non-cash nature and any deferrals or accruals of past or future cash receipts or payments. The cash flow from regular revenue generating, financing and investing activities of the Company is segregated. Cash and cash equivalents in the balance sheet comprise cash at bank, cash/cheques in hand and short term investments (excluding pledged term deposits) with an original maturity of three months or less.

1.04 Contingencies and Events Occurring After Balance Sheet Date (AS - 4):

Disclosure of contingencies as required by the accounting standard is furnished in the Notes on accounts.

1.05 Net Profit or Loss for the Period, Prior Period Items And Changes In Accounting Policies (AS - 5):

Net Profit or loss for the period and prior period items are shown separately in the Statement of Profit & Loss.

1.06 Depreciation (AS - 6):

1.06.01 Tangible assets including continuous process plants are depreciated and/or amortized on the basis of their useful lives as notified in Schedule II to the Companies Act, 2013 except in case of assets costing less than Rs, 5000 which are depreciated over their useful life as assessed by the management. Depreciation in respect of additions to assets has been charged on pro rata basis with reference to the period when the assets are ready for use. The provision for depreciation for multiple shifts has been made in respect of eligible assets on the basis of operation of respective units. Where the historical cost of a depreciable asset undergoes a change due to increase or decrease in long term liability on account of exchange fluctuations, the depreciation on the revised unamortized depreciable amount is provided prospectively over the residual useful life of the asset.

1.06.02 Leasehold lands are amortized over the period of lease.

1.07 Revenue Recognition (AS-9):

Revenue is recognized to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured.

1.07.01 Sale of Goods: Revenue from sales of goods is recognized on transfer of significant risks and rewards of ownership to the customers. Gross sales shown in the Statement of Profit & Loss are inclusive of Excise Duty and the value of self-consumption but excludes inter-transfers, Trade discounts, CST and VAT. Net sales are shown after deducting Excise duty which is disclosed at appropriate places.

1.07.02 Services: Revenue from Services are recognized as and when the services are rendered. The Company collects service tax on behalf of the government and therefore, it is not an economic benefit flowing to the Company and hence excluded from Revenue.

1.07.03 Interest: Interest income is recognized on a time proportion basis taking into account the amount outstanding and rate applicable.

1.07.04 Dividends: Dividend from investment is recognized when the Company in which they are held declares the dividend and when the right to receive the same is established.

1.07.05 Insurance Claims: Insurance Claims are accounted for on acceptance and when there is a reasonable certainty of receiving the same, on grounds of prudence.

1.08 Accounting for tangible and Intangible Assets (AS -10):

1.08.01 Tangible assets are stated at original cost (net of tax/duty credit availed) less accumulated depreciation, amortization and impairment losses except freehold land which is carried at cost. Cost includes cost of acquisition, construction and installation, taxes, duties, freight, other incidental expenses related to the acquisition, trial run expenses (net of revenue) and pre-operative expenses including attributable borrowing costs incurred during pre-operational period.

1.08.02 Tangible assets which are not ready for their intended use on reporting date are carried as capital work-in-progress at cost, comprising direct cost and related incidental expenses.

1.08.03 The Company has exercised the option available to it under Rule 46A of the Companies (Accounting Standards) (Second Amendment) Rules, 2011 in respect of accounting for fluctuations in foreign exchange relating to “Long Term Foreign Currency Monetary Items”.

1.08.04 Intangible assets are carried at cost, net of accumulated amortization and impairment loss, if any.

1.09Accounting for the Effects in Foreign Exchange Rates (AS - 11):

1.09.01 Initial Recognition: Transactions denominated in foreign currencies are normally recorded at the exchange rates prevailing at the time of the transactions.

1.09.02 Conversion: Foreign currency monetary items are reported using the closing rate. Non-monetary items which are carried in terms of historical cost denominated in a foreign currency are reported using the exchange rate at the date of the transaction.

1.09.03 Exchange Differences: Exchange differences arising on the settlement of monetary items or on reporting company''s monetary items at rates different from those at which they were initially recorded during the year, or reported in previous financial statements, are recognized as income or expenses in the year in which they arise.

1.09.04 Forward exchange contracts entered into to hedge foreign currency risk of an existing asset/liability: The premium or discount arising at the inception of forward exchange contract is recognized as an expense/income on the date of transaction. Any profit or loss arising on cancellation or renewal of such forward exchange contract is also recognized as income or expense for the period. However, in case of long term liabilities, where they relate to acquisition of fixed assets, the income or expense on account of exchange difference is adjusted to the carrying cost of such assets.

1.10 Accounting for Investments (AS - 13):

Investments that are readily realizable and intended to be held for not more than a year are classified as Current investments. All other investments are classified as Non-Current/ Long-term Investments. Current investments are carried at lower of cost and market value on individual investment basis. Non-Current/Long term I investments are considered at cost, unless there is an “other than temporary” decline in value, in which case adequate provision is made for the diminution in the value of Investments.

1.11 Employee Benefits (AS - 15):

1.11.01 Short-term employee benefits are recognized as an expense at the undiscounted amount in the Statement of Profit and Loss of the year in which the related service is rendered.

1.11.02 Post employment and other long term employee benefits are charged off in the year in which the employee has rendered services. The amount charged off is recognized at the present value of the amounts payable determined using actuarial valuation techniques. Actuarial gains and losses in respect of past employment and other long term benefits are charged to the Statement of Profit and Loss.

1.12 Borrowing Costs (AS - 16):

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

1.13 Segment Reporting (AS - 17):

1.13.01 Identification of Segments:

Primary Segment Business Segment:

The Company''s operating businesses are organized and managed separately according to the nature of products, with each segment representing a strategic business unit that offers different products and serves different markets. The identified segments are Manufacturing and Sale of (a) Plywood & Allied products; and (b) Medium Density Fiber Boards & Allied products.

Secondary Segment t Geographical Segment:

The analysis of geographical segment is based on the geographical location of the customers.

The geographical segments considered for disclosure are as follows:

- Sales within India include sales to customers located within India.

- Sales outside India include sales to customers located outside India.

1.13.02 Allocation of Common costs:

Common allocable costs are allocated to each segment according to the ratio of their respective turnover to the total turnover.

1.13.03 Unallocated items:

The Unallocated Segment includes general corporate income and expense items, which are not allocated to any business segment.

1.14 Related Party Disclosures (AS - 18):

Disclosure of related parties as required by the accounting standard is furnished in the Notes on accounts.

1.15 Leases (AS-19):

In accordance with Accounting Standard 19 “Accounting for leases”, lease arrangements, where the risks and rewards incidental to ownership of an asset substantially vests with the less or, are recognized as operating leases. Lease payments under operating leases are recognized as an expense in the Statement of Profit and Loss.

1.16 Earnings Per Share (AS - 20):

Basic earnings (loss) per share are calculated by dividing the net profit or loss for the period attributable to equity shareholders by the weighted average number of equity shares outstanding during the period.

For the purpose of calculating diluted earnings per share, the net profit or loss for the period attributable to equity shareholders and the weighted average number of shares outstanding during the period are adjusted for the effects of all dilutive potential equity shares.

1.17 Accounting For Taxes On Income (AS-22):

1.17.01 Tax expenses comprise of current tax and deferred tax including applicable surcharge and cess.

1.17.02 Current Income tax is computed using the tax effect accounting method, where taxes are accrued in the same period in which the related revenue and expenses arise. A provision is made for income tax annually, based on the tax liability computed, after considering tax allowances and exemptions. Provisions are recorded when it is estimated that a liability due to disallowances or other matters is probable.

1.17.03 The differences that result between the profit considered for income taxes and the profit as per the financial statements are identified, and thereafter a deferred tax asset or deferred tax liability is recorded for timing differences, namely the differences that originate in one accounting period and reverse in another, based on the tax effect of the aggregate amount being considered. The tax effect is calculated on the accumulated timing differences at the end of an accounting period based on prevailing enacted or substantially enacted regulations. Deferred Tax Assets and Deferred Tax Liabilities are offset, if a legally enforceable right exists to set off current tax assets against current tax liabilities and the Deferred Tax Assets and Deferred Tax Liabilities relate to taxes on income levied by same governing taxation laws. Deferred Tax Assets are recognized only if there is reasonable certainty that they will be realized and are reviewed for the appropriateness of their respective carrying values at each balance sheet date.

1.17.04 MAT (Minimum Alternate Tax) credit is recognized as an asset only when and to the extent there is convincing evidence that the Company will pay normal income tax during the specified period. In the year in which the MAT credit becomes eligible to be recognized as an asset in accordance with the recommendations contained in guidance Note issued by the Institute of Chartered Accountants of India, the said asset is created by way of a credit to the Statement of Profit and Loss and shown as MAT Credit Entitlement. The Company reviews the same at each balance sheet date and writes down the carrying amount of MAT Credit Entitlement to the extent there is no longer convincing evidence to the effect that Company will pay normal Income Tax during the specified period.

1.18 Intangible Assets (AS - 26):

1.18.01 Internally generated intangible asset under development stage is recognized when it is demonstrated that it is technically feasible to use the same and the cost incurred for developing the same is ascertained. Technical Know-how so developed internally is amortized on a straight- line basis over its estimated useful life.

1.18.02 Intangible assets acquired by payment e.g., Good will, Trademarks, Computer Software and Technical Know-how are disclosed at cost less amortization on a straight-line basis over its estimated useful life.

1.19 Impairment of Tangible and Intangible Assets (AS-28)

At each balance sheet date, the Company reviews the carrying amount of tangible and intangible assets to determine whether there is any indication of impairment loss. If any such indication exists, the recoverable amount of the assets is estimated in order to determine the extent of impairment loss. The recoverable amount is higher of the net selling price and the value in use, determined by discounting the estimated future cash flows expected from the continuing use of the asset to their present value.

1.20 Provisions, Contingent Liabilities and Contingent Assets (AS - 29):

1.20.01 Provisions are made when (a) the Company has a present obligation as a result of past events; (b) it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation; and (c) a reliable estimate is made of the amount of the obligation.

1.20.02 Contingent liabilities are not provided for but are disclosed by way of Notes on Accounts.

1.20.03 Contingent assets are neither accounted for nor disclosed by way of Notes on Accounts.

1.21 Excise Duty and Custom Duty:

Excise Duty on finished goods stock lying at the factories is accounted for at the point of manufacture of goods and accordingly, is considered for valuation of finished goods lying in the factories as on the Balance Sheet date. Similarly, Custom Duty on imported material in transit/lying in bonded warehouse is accounted for at the time of import/bonding of materials.

1.22 Consumption Of Raw Materials, Stores & Spare Parts Etc.:

The costs of Raw Materials, Stores and spare parts etc., consumed consist of purchase price including duties and taxes (other than those subsequently recoverable by the enterprise from the taxing authorities), freight inwards and other expenditure directly attributable to the procurement.

1.23 Service Tax & Cess:

Various expenses are accounted for after deducting the input tax credit available in respect of Service Tax, Education Cess and Secondary & Higher Education Cess.

1.24 Expenses for Corporate Social Responsibility:

In case of CSR activities undertaken by the Company, if any expenditure of revenue nature is incurred or an irrevocable contribution is made to any agency to be spent by the latter on any of the activities mentioned in Schedule VII to the Companies Act, 2013, the same is charged as an expense to its Statement of Profit and Loss. In case, the expenditure incurred by the Company is of such a nature which gives rise to an asset, such an asset is recognized where the Company retains the control of the asset and any future economic benefit accrues to it. A liability incurred by entering into a contractual obligation is recognized to the extent to which CSR activity is completed during the year.

1.25 Miscellaneous Expenditure Written Off:

The share issue expenses and expenses related to Scheme of Arrangement are written off in five equal annual installments in accordance with the provisions of Section 35DD of the Income Tax Act, 1961.

Pursuant to the approval of the members through postal ballot / e-voting on 14 December 2015 for sub-division of the equity shares of the Company, each equity share of nominal face value of Rs, 5 each was sub-divided to equity share of nominal face value of Rs, 1 each. The effective date of the said sub-division was 7 January 2016.

1.4 Terms/Rights attached to the Equity Shares

The Company has only one class of equity Shares having a par value of Rs, 1 per share (Previous year Rs, 5 per share). Each holder of equity shares is entitled to one vote per share. The Company declares and pays dividends in Indian rupees. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting.

During the year, the amount of per share dividend recognized as distribution to equity shareholders was Rs, 0.60 of Rs, 1 each (Previous year Rs, 3 of Rs, 5 each)

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. This distribution will be in proportion to the number of equity shares held by the shareholders.

3.1 Term Loan from Landsman Baden-Wurttemberg of Rs, 2963.57 lacs is secured by first priority security charge on Main Press Line of MDF plant. Other Term Loans of Rs, 10804.68 lacs are secured by first mortgage and charge on the immovable and movable properties of the company other than immovable properties at Tizit, Nagaland and Main Press line of MDF plant, ranking on pari passu basis, save and except current assets, both present and future and second charge over the current assets.

3.2 Secured Deferred payment liabilities are in respect of finance of vehicles, secured by hypothecation of the respective vehicles.

* Represents Current Maturities of Long Term Borrowings.

3.4 The company has not defaulted in repayment of loans and interest during the period.

7.1 Working Capital Loans of Rs, 2277.08 lacs are secured by first charge by way of hypothecation of current assets and second charge over movable and immovable properties of the Company except immovable properties at Tizit, Nagaland and Main Press line of MDF Plant, on pari-passu basis.

7.2 The company has not defaulted in repayment of loans and interest during the period.

21.5Manufactured goods consumed for own use is accounted for at selling price. However, no adjustment for profit element included in such goods was required as the Company neither had the stocks of such transferred goods nor finished goods manufactured by further processing of the same, at year end.


Mar 31, 2015

1.01 Disclosure of Accounting Policies (AS - 1):

1.01.01 Nature of Operation

Company is engaged in the business of manufacturing plywood and allied products, medium density fibre boards and allied products through its factories at various locations and branches and dealers'' network spread all over the country. It has two wholly owned subsidiary companies in overseas countries. The Company imports raw materials for manufacturing and also finished goods for trading. Manufactured goods are sold both in domestic and overseas markets.

Greenply Industries (Myanmar) Pvt. Ltd., subsidiary of the Company is engaged in manufacturing of products which constitutes raw materials to the Company and providing the same to Company and others. Greenply Trading Pte. Ltd., subsidiary of the Company operates as an investment vehicle and has invested into a Joint Venture Company viz. Greenply Alkemal (Singapore) Pte. Ltd., based out of Singapore.

1.01.02 Accounting Concepts & Basis of Presentation

The financialStatements are prepared in accordance with the Indian Generally Accepted Accounting Principles (GAAP) under the historical cost convention on the accrual basis. GAAP comprises mandatory accounting standards as specified in the Company (Accounting Standards) Rules 2006 read with Rule 7(1) of the Companies (Accounts) Rules, 2014 and the provisions of the Companies Act, 2013. Accounting policies have been consistently applied except where a newly issued accounting standard is initially adopted or a revision to an existing accounting standard requires a change in the accounting policy hitherto in use. The Company''s management evaluates all recently issued or revised accounting standards on an on-going basis.

The Normal Operating Cycle for the Company has been assumed to be of twelve months for classification of its various assets and liabilities into "Current" and "Non-current".

Where changes are made in presentation, the comparative figures of the previous year are regrouped and re-arranged accordingly.

1.01.03 Use of Estimates:

The preparation of financialstatements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent liabilities at the date of the financial statements and the results of operations during the reporting period end. Although these estimates are based upon management''s best knowledge of current events and actions, actualresults could differ from these estimates.

1.02 Valuation of Inventories (AS - 2):

1.02.01 Stock of Raw Materials, Stores and spare parts are valued at lower of cost or net realisable value; and of those in transit and at port related to these items are valued at lower of cost to date or net realisable value.

1.02.02 Goods-in-process is valued at lower of cost or net realisable value.

1.02.03 Stock of Finished goods is valued at lower of cost or net realisable value.

1.02.04 Stock-in-trade is valued at lower of cost or net realisable value.

1.02.05 Waste and scraps are accounted at estimated realisable value.

1.02.06 Cost of inventories is ascertained on the ''weighted average'' basis. Goods-in-process and finished goods are valued on absorption cost basis.

1.02.07 Growing Crops and ClonalPlants are valued at lower of cost or net realisable value.

1.03 Cash Flow Statement (AS - 3):

Cash flows are reported using indirect method, whereby profit before tax is adjusted for the effects of transactions of a non-cash nature and any deferrals or accruals of past or future cash receipts or payments. The cash flow from regular revenue generating, financing and investing activities of the Company is segregated. Cash and cash equivalents in the balance sheet comprise cash at bank, cash/cheques in hand and short term investments (excluding pledged term deposits) with an original maturity of three months or less.

1.04 Contingencies and Events Occurring After Balance Sheet Date (AS - 4):

Disclosure of contingencies as required by the accounting standard is furnished in the Notes on accounts.

1.05 Net Profit Or Loss For The Period,

Prior Period Items And Changes In Accounting Policies (AS - 5):

Net Profit or loss for the period and prior period items are shown separately in the Statement of Profit & Loss.

1.06 Depreciation (AS - 6):

1.06.01 Tangible assets including continuous process plants are depreciated and/or amortised on the basis of their useful lives as notified in Schedule II to the Companies Act, 2013. Depreciation in respect of additions to assets has been charged on pro rata basis with reference to the period when the assets are ready for use. The provision for depreciation for multiple shifts has been made in respect of eligible assets on the basis of operation of respective units. Where the historical cost of a depreciable asset undergoes a change due to increase or decrease in long term liability on account of exchange fluctuations, the depreciation on the revised unamortised depreciable amount is provided prospectively over the residual useful life of the asset.

1.06.02 Leasehold lands are amortised over the period of lease.

1.07 Revenue Recognition (AS - 9):

Revenue is recognized to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured.

1.07.01 Sale of Goods: Revenue from sales of goods is recognised on transfer of significant risks and rewards of ownership to the customers. Gross sales shown in the Statement of Profit & Loss are inclusive of Excise Duty and the value of self-consumption and inter-transfers but excludes Trade discounts, CST and VAT. Net sales are shown after deducting Excise duty which is disclosed at appropriate places.

1.07.02 Services: Revenue from Services are recognized as and when the services are rendered. The Company collects service tax on behalf of the government and therefore, it is not an economic benefit flowing to the Company and hence excluded from Revenue.

1.07.03 Interest: Interest income is recognized on a time proportion basis taking into account the amount outstanding and rate applicable.

1.07.04 Dividends: Dividend from investment is recognized when the Company in which they are held declares the dividend and when the right to receive the same is established.

1.07.05 Insurance Claims: Insurance Claims are accounted for on acceptance and when there is a reasonable certainty of receiving the same, on grounds of prudence.

1.08 Accounting for Tangible and Intangible Assets (AS - 10):

1.08.01 Tangible assets are stated at original cost (net of tax/duty credit availed) less accumulated depreciation, amortisation and impairment losses except freehold land which is carried at cost. Cost includes cost of acquisition, construction and installation, taxes, duties, freight, other incidental expenses related to the acquisition, trialrun expenses (net of revenue) and pre-operative expenses including attributable borrowing costs incurred during pre-operational period.

1.08.02 Tangible assets which are not ready for their intended use on reporting date are carried as capital work-in-progress at cost, comprising direct cost and related incidental expenses.

1.08.03 The Company has exercised the option available to it under Rule 46A of the Companies (Accounting Standards) (Second Amendment) Rules, 2011 in respect of accounting for fluctuations in foreign exchange relating to "Long Term Foreign Currency Monetary Items".

1.08.04 Intangible assets are carried at cost, net of accumulated amortization and impairment loss, if any.

1.09 Accounting for the Effects in Foreign Exchange Rates (AS - 11):

1.09.01 Initial Recognition: Transactions denominated in foreign currencies are normally recorded at the exchange rates prevailing at the time of the transactions.

1.09.02 Conversion: Foreign currency monetary items are reported using the closing rate. Non- monetary items which are carried in terms of historical cost denominated in a foreign currency are reported using the exchange rate at the date of the transaction.

1.09.03 Exchange Differences: Exchange differences arising on the settlement of monetary items or on reporting company''s monetary items at rates different from those at which they were initially recorded during the year, or reported in previous financial statements, are recognized as income or expenses in the year in which they arise.

1.09.04 Forward exchange contracts

entered into to hedge foreign currency risk of an existing asset/liability: The premium or discount arising at the inception of forward exchange contract is recognized as an expense/ income on the date of transaction. Any profit or loss arising on cancellation or renewal of such forward exchange contract is also recognized as income or expense for the period. However, in case of long term liabilities, where they relate to acquisition of fixed assets, the income or expense on account of exchange difference is adjusted to the carrying cost of such assets.

1.10 accounting for investments (as - 13):

Investments that are readily realisable and intended to be held for not more than a year are classified as Current investments. All other investments are classified as Non-Current/

Long-term Investments. Current investments are carried at lower of cost and market value on individualinvestment basis. Non-Current/Long term Investments are considered at cost, unless there is an "other than temporary" decline in value, in which case adequate provision is made for the diminution in the value of Investments.

1.11 Employee Benefits (AS - 15):

1.11.01 Short-term employee benefits are recognized as an expense at the undiscounted amount in the Statement of Profit and Loss of the year in which the related service is rendered.

1.11.02 Post employment and other long term employee benefits are charged off in the year in which the employee has rendered services. The amount charged off is recognized at the present value of the amounts payable determined using actuarial valuation techniques. Actuarialgains and losses in respect of past employment and other long term benefits are charged to the Statement of Profit and Loss.

1.12 Borrowing Costs (AS - 16):

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

1.13 Segment Reporting (AS - 17):

1.13.01 Identification of Segments:

Primary Segment Business Segment:

The Company''s operating businesses are organized and managed separately according to the nature of products, with each segment representing a strategic business unit that offers different products and serves different markets. The identified segments are Manufacturing and Sale of (a) Plywood & Allied products; and (b) Medium Density Fibre Boards & Allied products.

Secondary Segment Geographical Segment:

The analysis of geographical segment is based on the geographical location of the customers.

The geographical segments considered for disclosure are as follows:

Sales within India include sales to customers located within India.

Sales outside India include sales to customers located outside India.

1.13.02 Allocation of Common costs:

Common allocable costs are allocated to each segment according to the ratio of their respective turnover to the total turnover.

1.13.03 Unallocated items:

The Unallocated Segment includes general corporate income and expense items, which are not allocated to any business segment.

1.14 Related Party Disclosures (AS - 18):

Disclosure of related parties as required by the accounting standard is furnished in the Notes on accounts.

1.15 Leases (AS - 19):

In accordance with Accounting Standard 19 "Accounting for leases", lease arrangements, where the risks and rewards incidental to ownership of an asset substantially vests with the lessor, are recognized as operating leases. Lease payments under operating leases are recognized as an expense in the Statement of Profit and Loss.

1.16 Earnings Per Share (AS - 20):

Basic earnings (loss) per share are calculated by dividing the net profit or loss for the period attributable to equity shareholders by the weighted average number of equity shares outstanding during the period.

For the purpose of calculating diluted earnings per share, the net profit or loss for the period attributable to equity shareholders and the weighted average number of shares outstanding during the period are adjusted for the effects of all dilutive potential equity shares.

1.17 Accounting for Taxes On Income (AS - 22):

1.17.01 Tax expenses comprise of current tax and deferred tax including applicable surcharge and cess.

1.17.02 Current Income tax is computed using the tax effect accounting method, where taxes are accrued in the same period in which the related revenue and expenses arise. A provision is made for income tax annually, based on the tax liability computed, after considering tax allowances and exemptions. Provisions are recorded when it is estimated that a liability due to disallowances or other matters is probable.

1.17.03 The differences that result between the profit considered for income taxes and the profit as per the financial statements are identified, and thereafter a deferred tax asset or deferred tax liability is recorded for timing differences, namely the differences that originate in one accounting period and reverse in another, based on the tax effect of the aggregate amount being considered. The tax effect is calculated on the accumulated timing differences at the end of an accounting period based on prevailing enacted or substantially enacted regulations. Deferred Tax Assets and Deferred Tax Liabilities are offset, if a legally enforceable right exists to set off current tax assets against current tax liabilities and the Deferred Tax Assets and Deferred Tax Liabilities relate to taxes on income levied by same governing taxation laws. Deferred Tax Assets are recognized only if there is reasonable certainty that they will be realized and are reviewed for the appropriateness of their respective carrying values at each balance sheet date.

1.17.04 MAT (Minimum Alternate Tax) credit is recognised as an asset only when and to the extent there is convincing evidence that the Company will pay normal income tax during the specified period. In the year in which the MAT credit becomes eligible to be recognized as an asset in accordance with the recommendations contained in guidance Note issued by the Institute of Chartered Accountants of India, the said asset is created by way of a credit to the Statement of Profit and Loss and shown as MAT Credit Entitlement. The Company reviews the same at each balance sheet date and writes down the carrying amount of MAT Credit Entitlement to the extent there is no longer convincing evidence to the effect that Company will pay normal Income Tax during the specified period.

1.18 Discontinuing Operations (AS - 24):

Pursuant to the approvalof the High Court, effect has been given in the Financial Statements to the "Composite Scheme of Arrangement" approved by the Board of Directors. The assets & liabilities of the Demerged Undertaking have been transferred to and vested in Greenlam Industries Limited and are disclosed by way of Notes on Accounts.

1.19 Intangible Assets (AS - 26):

1.19.01 Internally generated intangible asset under development stage is recognized when it is demonstrated that it is technically feasible to use the same and the cost incurred for developing the same is ascertained. Technical Know-how so developed internally is amortised on a straight- line basis over its estimated useful life.

1.19.02 Intangible assets acquired by payment e.g., Goodwill, Trademarks, Computer Software and Technical Know-how are disclosed at cost less amortization on a straight-line basis over its estimated useful life.

1.20 Impairment of Tangible and Intangible Assets (AS - 28)

At each balance sheet date, the Company reviews the carrying amount of tangible and intangible assets to determine whether there is any indication of impairment loss. If any such indication exists, the recoverable amount of the assets is estimated in order to determine the extent of impairment loss. The recoverable amount is higher of the net selling price and the value in use, determined by discounting the estimated future cash flows expected from the continuing use of the asset to their present value.

1.21 Provisions, Contingent Liabilities and Contingent Assets (AS - 29):

1.21.01 Provisions are made when (a) the Company has a present obligation as a result of past events; (b) it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation; and (c) a reliable estimate is made of the amount of the obligation.

1.21.02 Contingent liabilities are not provided for but are disclosed by way of Notes on Accounts.

1.21.03 Contingent assets are neither accounted for nor disclosed by way of Notes on Accounts.

1.22 Excise Duty and Custom Duty:

Excise Duty on finished goods stock lying at the factories is accounted for at the point of manufacture of goods and accordingly, is considered for valuation of finished goods lying in the factories as on the Balance Sheet date. Similarly, Custom Duty on imported material in transit/lying in bonded warehouse is accounted for at the time of import/bonding of materials.

1.23 Consumption of Raw Materials, Stores & Spare Parts Etc.:

The costs of Raw Materials, Stores and spare parts etc., consumed consist of purchase price including duties and taxes (other than those subsequently recoverable by the enterprise from the taxing authorities), freight inwards and other expenditure directly attributable to the procurement.

1.24 Service Tax & Cess:

Various expenses are accounted for after deducting the input tax credit available in respect of Service Tax, Education Cess and Secondary & Higher Education Cess.

1.25 Expenses for Corporate Social Responsibility:

In case of CSR activities undertaken by the Company, if any expenditure of revenue nature is incurred on any of the activities mentioned in Schedule VII to the Companies Act, 2013, the same is charged as an expense to its Statement of Profit and Loss. In case, the expenditure incurred by the Company is of such a nature which gives rise to an asset, such an asset is recognised where the Company retains the control of the asset and any future economic benefit accrues to it. A liability incurred by entering into a contractual obligation is recognised to the extent to which CSR activity is completed during the year.

1.26 Miscellaneous Expenditure Written Off:

The share issue expenses and expenses related to Scheme of Arrangement are written off in five equal annual installments in accordance with the provisions of Section 35DD of the Income Tax Act, 1961.


Mar 31, 2014

1.01 DISCLOSURE OF ACCOUNTING POLICIES (AS-1):

1.01.01 Nature of Operation

Company is an interior infrastructure company engaged in the business of manufacturing plywood and allied products, laminates, particle boards, medium density fibre boards, etc. through its factories at various locations and branches and dealers'' network spread all over the country. It has four wholly owned subsidiary companies operating in overseas countries and two in India. It imports raw materials for manufacturing and also finished goods for trading. Manufactured goods are sold both in domestic and overseas markets. The Overseas subsidiaries of the Company are engaged in similar lines of business.

1.01.02 Accounting Concepts & Basis of Presentation

The financial Statements are prepared in accordance with the Indian Generally Accepted Accounting Principles (GAAP) under the historical cost convention on the accrual basis. GAAP comprises mandatory accounting standards as prescribed by the Companies (Accounting Standards) Rules, 2006, the Companies Act, 1956, read with the General Circular number 15/2013 dated 13th September, 2013 in respect of Section 133 of the Companies Act, 2013 and General Circular number 08/2014 dated 04th April 2014 of the Ministry of Corporate Affairs and guidelines issued by the Securities and Exchange Board of India (SEBI). Accounting policies have been consistently applied except where a newly issued accounting standard is initially adopted or a revision to an existing accounting standard requires a change in the accounting policy hitherto in use. The Company''s management evaluates all recently issued or revised accounting standards on an on-going basis. Where changes are made in presentation, the comparative figures of the previous year are regrouped and re-arranged accordingly.

1.01.03 Use of Estimates:

The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent liabilities at the date of the financial statements and the results of operations during the reporting period end. Although these estimates are based upon management''s best knowledge of current events and actions, actual results could differ from these estimates.

1.02 VALUATION OF INVENTORIES (AS-2):

1.02.01 Stock of Raw Materials, Stores and spare parts are valued at cost; and of those in transit, at port and at Bonded Warehouse related to these items are valued at cost to date.

1.02.02 Goods-in-process is valued at cost.

1.02.03 Stock of Finished goods are valued at cost or net realisable value whichever is lower.

1.02.04 Waste and scraps are accounted at estimated realisable value.

1.02.05 Cost of inventories is generally ascertained on the ''weighted average'' basis. Goods-in-process and finished goods are valued on absorption cost basis.

1.02.06 The self-generated Certified Emission Reductions (CERs) are recognized as asset on certification by UNFCCC and are valued at cost or net realizable value, whichever is lower.

1.03 CASH FLOW STATEMENT (AS - 3):

Cash flows are reported using indirect method, whereby profit before tax is adjusted for the effects of transactions of a non-cash nature and any deferrals or accruals of past or future cash receipts or payments. The cash flow from regular revenue generating, financing and investing activities of the Company is segregated. Cash and cash equivalents in the balance sheet comprise cash at bank (excluding pledged term deposits), cash/cheques in hand and short term investments with an original maturity of three months or less.

1.04 CONTINGENCIES AND EVENTS OCCURRING AFTER BALANCE SHEET DATE (AS -4):

Disclosure of contingencies as required by the accounting standard is furnished in the Notes on accounts.

1.05 NET PROFIT OR LOSS FOR THE PERIOD, PRIOR PERIOD ITEMS AND CHANGES IN ACCOUNTING POLICIES (AS -5):

Net Profit or loss for the period and prior period items are shown separately in the Statement of Profit & Loss.

1.06 DEPRECIATION (AS - 6):

1.06.01 Depreciation on Fixed Assets is provided for on straight-line method in accordance with and generally at the rates specified in Schedule XIV to the Companies Act, 1956.

1.06.02 Depreciation in respect of additions to assets has been charged on pro rata basis with reference to the period of use of such assets. The provision for depreciation for multiple shifts has been made in respect of eligible assets on the basis of operation of respective units. In respect of continuous process plant, depreciation has been provided as per rates prescribed in Schedule XIV of the Companies Act, 1956.

1.06.03 Leasehold lands are amortised over the period of lease.

1.06.04 Intangible assets are amortised on straight-line method as follows : Computer Software 5 years

Technical Know-how - 2 years

Trademarks 10 years

Goodwill 5 years

1.07 REVENUE RECOGNITION (AS -9):

Revenue is recognized to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured.

1.07.01 Sale of Goods: Sales are accounted for on despatch of products to customers. Gross sales shown in the Statement of Profit & Loss are inclusive of Excise Duty and the value of self-consumption, inter-transfers and export incentives but excludes discounts, CST and VAT. Net sales are shown after deducting Excise duty which is disclosed at appropriate places.

1.07.02 Interest: Interest income is recognized on a time proportion basis taking into account the amount outstanding and rate applicable.

1.07.03 Dividends: Dividend from investment is recognized when the Company in which they are held declares the dividend and when the right to receive the same is established.

1.07.04 Export incentives: Benefit on account of entitlement to import goods free of duty under the Advance License Scheme, "Duty Entitlement Pass Book under Duty Exemption Scheme (DEPB)", Duty Free Replenishment Certificate (DFRC), Duty Free Import Authorisation (DFIA) Scheme, Status Holder Incentive Scrip (SHIS) Scheme and Focus Market Scheme (FMS), to the extent of their face value, are accounted for as and when exports are made i.e., in the year of export. Profit or loss arising on utilisation of the same and/or sale thereof are accounted for in the year in which either the imports are made against the said Advance License, DEPB, DFRC, DFIA, SHIS or FMS and/or the same are sold.

1.08 ACCOUNTING FOR FIXED ASSETS (AS - 10):

1.08.01 Fixed Assets are stated at cost less accumulated depreciation. Cost includes borrowing costs and all incidental expenditure net of CENVAT, Service Tax Input Credit and VAT Input Credit, wherever applicable.

1.08.02 Revenue expenses incurred in connection with project implementation insofar as such expenses relate to the period prior to the commencement of commercial production are treated as part of project cost and capitalized.

1.09ACCOUNTING FOR THE EFFECTS IN FOREIGN EXCHANGE RATES (AS- 11):

1.09.01 Initial Recognition: Transactions denominated in foreign currencies are normally recorded at the exchange rates prevailing at the time of the transactions.

1.09.02 Conversion: Foreign currency monetary items are reported using the closing rate. Non-monetary items which are carried in terms of historical cost denominated in a foreign currency are reported using the exchange rate at the date of the transaction.

1.09.03 Exchange Differences: Exchange differences arising on the settlement of monetary items or on reporting company''s monetary items at rates different from those at which they were initially recorded during the year, or reported in previous financial statements, are recognized as income or expenses in the year in which they arise.

1.09.04 Integral Foreign Operation: In respect of a branch, which is integral foreign operation, all transactions are translated at rates prevailing on the date of transaction or that approximates the actual rate at the date of transaction. Branch monetary assets and liabilities are restated at the year-end rates.

1.09.05 Forward exchange contracts entered into to hedge foreign currency risk of an existing asset/liability:

The premium or discount arising at the inception of forward exchange contract is recognized as an expense/income on the date of transaction. Any profit or loss arising on cancellation or renewal of such forward exchange contract is also recognized as income or expense for the period. However, in case of long term liabilities, where they relate to acquisition of fixed assets, the income or expense on account of exchange difference is adjusted to the carrying cost of such assets.

1.10 ACCOUNTING FOR INVESTMENTS (AS - 13):

Investments, being long term in nature, are valued at cost of acquisition. Adjustment for increase/decrease in the value of investments, if any, will be accounted for on realisation of the investments. A provision for diminution is made to recognise a decline, other than temporary, in the value of long term investments.

1.11 EMPLOYEE BENEFITS (AS - 15):

1.11.01 Short-term employee benefits are recognized as an expense at the undiscounted amount in the Statement of Profit and Loss of the year in which the related service is rendered.

1.11.02 Post employment and other long term employee benefits are charged off in the year in which the employee has rendered services. The amount charged off is recognized at the present value of the amounts payable determined using actuarial valuation techniques. Actuarial gains and losses in respect of past employment and other long term benefits are charged to the Statement of Profit and Loss.

1.12 BORROWING COSTS (AS - 16):

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

1.13 SEGMENT REPORTING (AS - 17):

1.13.01 Identification of Segments: Primary Segment

Business Segment:

The Company''s operating businesses are organized and managed separately according to the nature of products, with each segment representing a strategic business unit that offers different products and serves different markets. The identified segments are Manufacturing and Sale of (a) Plywood & Allied products; (b) Laminates & Allied products, and (c) Medium Density Fibre Boards.

Secondary Segment

Geographical Segment:

The analysis of geographical segment is based on the geographical location of the customers.

The geographical segments considered for disclosure are as follows:

- Sales within India include sales to customers located within India.

- Sales outside India include sales to customers located outside India.

1.13.02 Allocation of Common costs:

Common allocable costs are allocated to each segment according to the ratio of their respective turnover to the total turnover.

1.13.03 Unallocated items:

The Unallocated Segment includes general corporate income and expense items, which are not allocated to any business segment.

1.14 RELATED PARTY DISCLOSURES (AS - 18):

Disclosure of related parties as required by the accounting standard is furnished in the Notes on accounts.

1.15 LEASES (AS-19):

In accordance with Accounting Standard 19 "Accounting for leases", lease arrangements, where the risks and rewards incidental to ownership of an asset substantially vests with the lessor, are recognized as operating leases. Lease payments under operating leases are recognized as an expense in the Statement of Profit and Loss.

1.16 EARNINGS PER SHARE (AS - 20):

Basic earnings (loss) per share are calculated by dividing the net profit or loss for the period attributable to equity shareholders by the weighted average number of equity shares outstanding during the period.

For the purpose of calculating diluted earnings per share, the net profit or loss for the period attributable to equity shareholders and the weighted average number of shares outstanding during the period are adjusted for the effects of all dilutive potential equity shares.

1.17 ACCOUNTING FOR TAXES ON INCOME (AS - 22):

The differences that result between the profit considered for income taxes and the profit as per the financial statements are identified, and thereafter a deferred tax asset or deferred tax liability is recorded for timing differences, namely the differences that originate in one accounting period and reverse in another, based on the tax effect of the aggregate amount being considered. The tax effect is calculated on the accumulated timing differences at the end of an accounting period based on prevailing enacted or substantially enacted regulations. Deferred Tax Assets are recognized only if there is reasonable certainty that they will be realized and are reviewed for the appropriateness of their respective carrying values at each balance sheet date. The income tax provision for the interim period is made based on the best estimate of the annual average tax rate expected to be applicable for the full fiscal year.

1.18 DISCONTINUING OPERATIONS (AS - 24):

During the pendency of the approval of the High Court and other regulatory compliances, no effect is given in the Financial Statements to the "Composite Scheme of Arrangement" approved by the Board of Directors except that profit/ (loss) or tax attributable thereon in respect of the discontinuing operations are disclosed in the Statement of Profit and Loss. The assets, liabilities, revenue and cash flow of the proposed Demerged Undertaking are disclosed by way of Notes on Accounts.

1.19 INTANGIBLE ASSETS (AS - 26):

1.19.01 Internally generated intangible asset under development stage is recognized when it is demonstrated that it is technically feasible to use the same and the cost incurred for developing the same is ascertained. Technical Know-how so developed internally is amortised on a straight- line basis over its estimated useful life.

1.19.02 Intangible assets acquired by payment e.g., Trade marks, Goodwill and Technical Know-how are disclosed at cost less amortization on a straight-line basis over its estimated useful life.

1.20 PROVISIONS, CONTINGENT LIABILITIES AND CONTINGENT ASSETS (AS - 29):

1.20.01 Provisions are made for present obligations arising as a result of past events

1.20.02 Contingent liabilities are not provided for but are disclosed by way of Notes on Accounts.

1.20.03 Contingent assets are neither accounted for nor disclosed by way of Notes on Accounts.

1.21 EXCISE DUTY AND CUSTOM DUTY:

Excise Duty on finished goods stock lying at the factories is accounted for at the point of manufacture of goods and accordingly, is considered for valuation of finished goods lying in the factories as on the Balance Sheet date. Similarly, Custom Duty on imported material in transit/lying in bonded warehouse is accounted for at the time of import/bonding of materials.

1.22 CONSUMPTION OF RAW MATERIALS, STORES & SPARE PARTS ETC. :

Raw Materials, Stores and spare parts etc., consumed are exclusive of (a) Excise Duty on inputs under Cenvat Scheme, (b) Service tax input credits, (c) Insurance Claims received (d) Entry Tax under Rajasthan Local Sales Tax Act and (e) VAT Input Credit under State laws, wherever applicable.

1.23 SERVICE TAX & CESS:

Various expenses are accounted for after deducting the input tax credit available in respect of Service Tax, Education Cess and Secondary & Higher Education Cess.

1.24 TAXATION:

1.24.01 Tax expenses comprise of income tax and deferred tax including applicable surcharge and cess.

1.24.02 Income taxes are computed using the tax effect accounting method, where taxes are accrued in the same period in which the related revenue and expenses arise. A provision is made for income tax annually, based on the tax liability computed, after considering tax allowances and exemptions. Provisions are recorded when it is estimated that a liability due to disallowances or other matters is probable.

1.24.03 MAT (Minimum Alternate Tax) credit is recognised as an asset only when and to the extent there is convincing evidence that the Company will pay normal income tax during the specified period. In the year in which the MAT credit becomes eligible to be recognized as an asset in accordance with the recommendations contained in guidance Note issued by the Institute of Chartered Accountants of India, the said asset is created by way of a credit to the profit and loss account and shown as MAT Credit Entitlement. The Company reviews the same at each balance sheet date and writes down the carrying amount of MAT Credit Entitlement to the extent there is no longer convincing evidence to the effect that Company will pay normal Income Tax during the specified period.

1.24.04 Provision for deferred tax or credit for release thereof is accounted for as ascertained in accordance with principles stated in para 1.17 hereinabove.

1.24.05 Tax on distributed profits payable in accordance with the provisions of section 1150 of the Income Tax Act, 1961 is in accordance with the Guidance Note on "Accounting for Corporate Dividend Tax" regarded as a tax on distribution of profits and is not considered in determination of profits for the period.


Mar 31, 2013

1. 01.01 Nature of Operation

Company is an interior infrastructure company engaged in the business of manufacturing plywood and allied products, laminates, particle boards, medium density fibre boards, etc. through its factories at various locations and branches and dealers'' network spread all over the country. It has three wholly owned subsidiary companies operating in Singapore, America and Europe. It imports raw materials for manufacturing and also finished goods for trading. Manufactured goods are sold both in domestic and overseas markets. The Overseas subsidiaries of the Company are engaged in the business of trading in similar products.

1.01.02 Accounting Concepts & Basis of Presentation

The financial statements are prepared in accordance with Generally Accepted Accounting Principles (GAAP) under the historical cost convention on the accrual basis, except for certain fixed assets which are revalued. GAAP comprises mandatory accounting standards as specified in the Company (Accounting Standards) Rules 2006, the provisions of the Companies Act, 1956 and guidelines issued by the Securities and Exchange Board of India. Accounting policies have been consistently applied except where a newly issued accounting standard is initially adopted or a revision to an existing accounting standard requires a change in the accounting policy hitherto in use. The management evaluates all recently issued or revised accounting standards on an on-going basis. Where changes are made in presentation, the comparative figures of the previous year are regrouped and re- arranged accordingly.

1.01.03 Use of Estimates:

The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent liabilities at the date of the financial statements and the results of operations during the reporting period end. Although these estimates are based upon management''s best knowledge of current events and actions, actual results could differ from these estimates.

1.02 VALUATION OF INVENTORIES (AS-2):

1.02.01 Stock of Raw Materials, Stores and spare parts are valued at cost; and of those in transit, at port and at Bonded Warehouse related to these items are valued at cost to date.

1.02.02 Goods-in-process is valued at cost.

1.02.03 Stock of Finished goods and semi-finished goods are valued at cost or net realisable value whichever is lower.

1.02.04 Waste and scraps are accounted at estimated realisable value.

1.02.05 Cost of inventories is generally ascertained on the ''weighted average'' basis. Goods-in-process, finished and semi-finished goods are valued on absorption cost basis.

1.02.06 The self-generated Certified Emission Reductions (CERs) are recognized as asset on certification by UNFCCC and are valued at cost or net realizable value, whichever is lower.

1.03 CASH FLOW STATEMENT (AS - 3):

Cash flows are reported using indirect method, whereby profit before tax is adjusted for the effects of transactions of a non-cash nature and any deferrals or accruals of past or future cash receipts or payments. The cash flow from regular revenue generating, financing and investing activities of the Company is segregated. Cash and cash equivalents in the balance sheet comprise cash at bank (excluding pledged term deposits), cash/ cheques in hand and short term investments with an original maturity of three months or less.

1.04 CONTINGENCIES AND EVENTS OCCURRING AFTER BALANCE SHEET DATE (AS -4):

Disclosure of contingencies as required by the accounting standard is furnished in the Notes on accounts.

1.05 NET PROFIT OR LOSS FOR THE PERIOD, PRIOR PERIOD ITEMS AND CHANGES IN ACCOUNTING POLICIES (AS -5):

Net Profit or loss for the period and prior period items are shown separately in the Profit & Loss Account.

1.06 DEPRECIATION (AS - 6):

1.06.01 Depreciation on Fixed Assets is provided for on straight-line method in accordance with and generally at the rates specified in Schedule XIV to the Companies Act, 1956. Leasehold lands at Kriparampur, Rudrapur and Rajkot units are amortised over the period of lease. Other leasehold lands are not amortised.

1.06.02 Depreciation in respect of additions to assets has been charged on pro rata basis with reference to the period of use of such assets. The provision for depreciation for multiple shifts has been made in respect of eligible assets on the basis of operation of respective units. In respect of continuous process plant, depreciation has been provided as per rates prescribed in Schedule XIV of the Companies Act, 1956.

1.07 REVENUE RECOGNITION (AS -9):

Revenue is recognized to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured.

1.07.01 Sale of Goods: Sales are accounted for on despatch of products to customers. Gross sales shown in the Statement of Profit & Loss are inclusive of Excise Duty and the value of self-consumption, inter-transfers and export incentives but excludes discounts, CST and VAT. Net sales are shown after deducting Excise duty which is disclosed at appropriate places.

1.07.02 Interest: Interest income is recognized on a time proportion basis taking into account the amount outstanding and rate applicable

1.07.03 Dividends: Dividend from investment is recognized when the Company in which they are held declares the dividend and when the right to receive the same is established.

1.07.04 Export incentives: Benefit on account of entitlement to import goods free of duty under the "Duty Entitlement Pass Book under Duty Exemption Scheme (DEPB)", Duty Free Replenishment Certificate (DFRC), Duty Free Import Authorisation (DFIA) Scheme to the extent of their face value are accounted for as and when exports are made i.e., in the year of export. Profit or loss arising on utilisation of the same and/or sale thereof are accounted for in the year in which either the imports are made against the said DEPB, DFRC or DFIA and/or the same are sold.

1.07.05 In case of manufacturing units exempt from payment of VAT/Sales tax under State laws, VAT input credit receivable is carried forward as an asset to the extent it is eligible for set-off in subsequent years.

1.08 ACCOUNTING FOR FIXED ASSETS (AS - 10):

1.08.01 Fixed assets, which are revalued, are stated at revalued amounts as a result of their revaluation.

1.08.02 Other Fixed Assets are stated at cost less accumulated depreciation. Cost includes borrowing costs and all incidental expenditure net of CENVAT, Service Tax Input Credit and VAT Input Credit, wherever applicable.

1.08.03 Revenue expenses incurred in connection with project implementation insofar as such expenses relate to the period prior to the commencement of commercial production are treated as part of project cost and capitalized.

1.09 ACCOUNTING FOR THE EFFECTS IN FOREIGN EXCHANGE RATES (AS - 11):

1.09.01 Transactions denominated in foreign currencies are normally recorded at the exchange rates prevailing at the time of the transactions.

1.09.02 In conformity with revised Accounting Standard (AS - 11), issued by the Institute of Chartered Accountants of India (ICAI), monetary items denominated in foreign currencies at the year end and not covered by forward exchange contracts are translated at year end rates and those covered by forward exchange contracts are translated at the rate ruling at the date of transaction as increased or decreased by the difference between the forward rate and exchange rate on the date of transaction, such difference having been amortised over the life of the contract.

1.09.03 Non-monerary items carried at historical cost are reported using the rate at the date of transaction.

1.09.04 In respect of branches, which are integral foreign operations, all transactions are translated at rates prevailing on the date of transaction or that approximates the actual rate at the date of transaction. Branch monetary assets and liabilities are restated at the year end rates.

1.09.05 Any income or expense on account of exchange difference either on settlement or on translation is recognised in the Profit and Loss account. However, in case of long term liabilities, where they relate to acquisition of fixed assets, the income or expense on account of exchange difference is adjusted to the carrying cost of such assets.

1.10 ACCOUNTING FOR INVESTMENTS (AS - 13):

Investments, being long term in nature, are valued at cost of acquisition. Adjustment for increase/decrease in the value of investments, if any, will be accounted for on realisation of the investments. A provision for diminution is made to recognise a decline, other than temporary, in the value of long term investments.

1.11 EMPLOYEE BENEFITS (AS - 15):

1.11.01 Short-term employee benefits are recognized as an expense at the undiscounted amount in the profit and loss account of the year in which the related service is rendered.

1.11.02 Post employment and other long term employee benefits are charged off in the year in which the employee has rendered services. The amount charged off is recognized at the present value of the amounts payable determined using actuarial valuation techniques. Actuarial gains and losses in respect of past employment and other long term benefits are charged to the profit and loss account.

1.12 BORROWING COSTS (AS - 16):

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

1.13 SEGMENT REPORTING (AS - 17):

1.13.01 Identification of Segments:

Piimaiy Segment Business Segment:

The Company''s operating businesses are organized and managed separately according to the nature of products, with each segment representing a strategic business unit that offers different products and serves different markets. The identified segments are Manufacturing & Sale of (a) Plywood & Allied products; (b) Laminates & Allied products, and (c) Medium Density Fibre Boards.

Secondary Segment Geographical Segment:

The analysis of geographical segment is based on the geographical location of the customers.

The geographical segments considered for disclosure are as follows:

- Sales within India include sales to customers located within India.

- Sales outside India include sales to customers located outside India.

1.13.02 Allocation of Common costs:

Common allocable costs are allocated to each segment according to the ratio of their respective turnover to the total turnover.

1.13.03 Unallocated items:

The Unallocated Segment includes general corporate income and expense items, which are not allocated to any business segment.

1.14 RELATED PARTY DISCLOSURES (AS - 18):

Disclosure of related parties as required by the accounting standard is furnished in the Notes on accounts.

1.15 LEASES (AS - 19):

In accordance with Accounting Standard 19 "Accounting for leases", lease arrangements, where the risks and rewards incidental to ownership of an asset substantially vests with the lessor, are recognized as operating leases. Lease payments under operating leases are recognized as an expense in the Statement of Profit and Loss.

1.16 EARNINGS PER SHARE (AS - 20):

Basic earnings (loss) per share are calculated by dividing the net profit or loss for the period attributable to equity shareholders by the weighted average number of equity shares outstanding during the period.

Partly paid equity shares are treated as a fraction of an equity share to the extent that they were entitled to participate in dividends relative to a fully paid equity share during the reporting period.

For the purpose of calculating diluted earnings per share, the net profit or loss for the period attributable to equity shareholders and the weighted average number of shares outstanding during the period are adjusted for the effects of all dilutive potential equity shares.

1.17 CONSOLIDATED FINANCIAL STATEMENTS (AS - 21):

1.17.01 The consolidated financial statements of the parent and its subsidiaries are combined on a line by line basis by adding together like items of assets, liabilities, income and expenses. Intragroup balances and intragroup transactions and resulting unrealised profits (losses) are eliminated in full. Consolidated financial statements are prepared using uniform accounting policies for the like transactions and other events in similar circumstances to the extent practicable and in case of difference, the same is disclosed.

1.17.02 Investments in subsidiaries are accounted for in accordance with Accounting Standard (AS) 13 - Accounting for Investments.

1.17.03 As all the subsidiary companies of the group are wholly owned, minority interests in the income of the group are not presented

1.18 ACCOUNTING FOR TAXES ON INCOME (AS - 22):

The differences that result between the profit considered for income taxes and the profit as per the financial statements are identified, and thereafter a deferred tax asset or deferred tax liability is recorded for timing differences, namely the differences that originate in one accounting period and reverse in another, based on the tax effect of the aggregate amount being considered. The tax effect is calculated on the accumulated timing differences at the end of an accounting period based on prevailing enacted or substantially enacted regulations. Deferred Tax Assets are recognized only if there is reasonable certainty that they will be realized and are reviewed for the appropriateness of their respective carrying values at each balance sheet date. The income tax provision for the interim period is made based on the best estimate of the annual average tax rate expected to be applicable for the full fiscal year.

1.19 INTERIM FINANCIAL REPORTING (AS - 25):

The quarterly financial results are published in accordance with the requirements of listing agreements with stock exchanges.

1.20 INTANGIBLE ASSETS (AS - 26):

1.20.01 Internally generated intangible asset under development stage is recognized when it is demonstrated that it is technically feasible to use the same and the cost incurred for developing the same is ascertained. Technical Know-how so developed internally is amortised on a straight- line basis over its estimated useful life.

1.20.02 Intangible assets acquired by payment e.g., Trade marks, Goodwill and Technical Know-how are disclosed at cost less amortization on a straight-line basis over its estimated useful life.

1.21 PROVISIONS, CONTINGENT LIABILITIES AND CONTINGENT ASSETS (AS - 29):

1.21.01 Provisions are made for present obligations arising as a result of past events.

1.21.02 Contingent liabilities are not provided for but are disclosed by way of Notes on Accounts.

1.21.03 Contingent assets are neither accounted for nor disclosed by way of Notes on Accounts.

1.22 CENTRAL EXCISE DUTY:

Excise Duty liability accruing on manufacture is accounted for as and when the liability for payment arises under the Central Excise Act, 1944. Duty on finished goods lying at stock at factory at the close of the year has not been provided for in the accounts and hence not included in the valuation of inventory of such goods. However the said liability if accounted would have no impact on the financial results for the accounting period.

1.23 CONSUMPTION OF RAW MATERIALS, STORES & SPARE PARTS ETC. :

Raw Materials, Stores and spare parts etc., consumed are exclusive of (a) Excise Duty on inputs under Cenvat Scheme, (b) Service tax input credits, (c) Insurance Claims received (d) Entry Tax under Rajasthan Local Sales Tax Act and (f) VAT Input Credit under State laws, wherever applicable.

1.24 SERVICE TAX & CESS:

Various expenses are accounted for after deducting the input tax credit available in respect of Service Tax,

Education Cess and Secondary & Higher Education Cess. 1.25 TAXATION:

1.25.01 Tax expenses comprise of income tax, corporate dividend tax, deferred tax including applicable surcharge and cess.

1.25.02 Income tax are computed using the tax effect accounting method, where taxes are accrued in the same period the related revenue and expenses arise. A provision is made for income tax annually, based on the tax liability computed, after considering tax allowances and exemptions. Provisions are recorded when it is estimated that a liability due to disallowances or other matters is probable.

1.25.03 MAT (Minimum Alternate Tax) credit is recognised as an asset only when and to the extent there is convincing evidence that the Company will pay normal income tax during the specified period. In the year in which the MAT credit becomes eligible to be recognized as an asset in accordance with the recommendations contained in guidance Note issued by the Institute of Chartered Accountants of India, the said asset is created by way of a credit to the profit and loss account and shown as MAT Credit Entitlement. The Company reviews the same at each balance sheet date and writes down the carrying amount of MAT Credit Entitlement to the extent there is no longer convincing evidence to the effect that Company will pay normal Income Tax during the specified period.

1.25.04 Provision for deferred tax or credit for release thereof is accounted for as ascertained in accordance with principles stated in para 1.18 hereinabove.

1.25.05 Tax on distributed profits payable in accordance with the provisions of section 115O of the Income Tax Act, 1961 is in accordance with the Guidance Note on "Accounting for Corporate Dividend Tax" regarded as a tax on distribution of profits and is not considered in determination of profits for the period.


Mar 31, 2012

1. 01.01. Nature of Operation: Company is an interior infrastructure company engaged in the business of manufacturing plywood and allied products, laminates, particle boards, medium density fibre boards, etc. through its factories at various locations and branches & dealers' network spread all over the country. It has two wholly owned subsidiary companies operating in Singapore & America. It imports raw materials for manufacturing and also finished goods for trading. Manufactured goods are sold both in domestic and overseas markets. The Overseas subsidiaries of the Company are engaged in the business of trading in similar products.

1.01.02. Accounting Concepts & Basis of Presentation: The financial statements are prepared in accordance with Indian Generally Accepted Accounting Principles (GAAP) under the historical cost convention on the accrual basis, except for certain fixed assets which are revalued. GAAP comprises mandatory accounting standards as specified in the Company (Accounting Standards) Rules 2006, the provisions of the Companies Act, 1956 and guidelines issued by the Securities and Exchange Board of India. Accounting policies have been consistently applied except where a newly issued accounting standard is initially adopted or a revision to an existing accounting standard requires a change in the accounting policy hitherto in use. The management evaluates all recently issued or revised accounting standards on an on-going basis. Where changes are made in presentation, the comparative figures of the previous year are regrouped and re-arranged accordingly.

1.01.03. Use of Estimates: The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent liabilities at the date of the financial statements and the results of operations during the reporting period end. Although these estimates are based upon management's best knowledge of current events and actions, actual results could differ from these estimates.

1.02. Valuation of inventories (AS-2):

1.02.01. Stock of Raw Materials, Stores and spare parts are valued at cost; and of those in transit, at port and at Bonded Warehouse related to these items are valued at cost to date.

1.02.02. Goods-in-process is valued at cost.

1.02.03. Stock of Finished goods and semi-finished goods are valued at cost or net realisable value whichever is lower.

1.02.04. Waste and scraps are accounted at estimated realisable value.

1.02.05. Cost of inventories is generally ascertained on the ‘weighted average' basis. Goods-in-process, finished and semi-finished goods are valued on absorption cost basis.

1.03. Cash Flow Statement (AS - 3):

Cash flows are reported using indirect method, whereby profit before tax is adjusted for the effects of transactions of a non-cash nature and any deferrals or accruals of past or future cash receipts or payments. The cash flow from regular revenue generating, financing and investing activities of the Company is segregated. Cash and cash equivalents in the balance sheet comprise cash at bank (excluding pledged term deposits), cash/cheques in hand and short term investments with an original maturity of three months or less.

1.04. Contingencies and events occurring after balance sheet date (AS -4):

Disclosure of contingencies as required by the accounting standard is furnished in the Notes on accounts.

1.05. Net profit or loss for the period, prior period items and changes in accounting policies (AS - 5):

Net Profit or loss for the period and prior period items are shown separately in the Profit & Loss Account.

1.06. Depreciation (AS - 6):

1.06.01. Depreciation on Fixed Assets is provided for on straight-line method in accordance with and generally at the rates specified in Schedule XIV to the Companies Act, 1956. Leasehold lands at Kriparampur, Rudrapur and Rajkot units are amortised over the period of lease. Other leasehold lands are not amortised.

1.06.02. Depreciation in respect of additions to assets has been charged on pro rata basis with reference to the period of use of such assets. The provision for depreciation for multiple shifts has been made in respect of eligible assets on the basis of operation of respective units. In respect of continuous process plant, depreciation has been provided as per rates prescribed in Schedule XIV of the Companies Act, 1956.

1.07. Revenue Recognition (AS -9):

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured.

1.07.01. Sale of Goods: Sales are accounted for on despatch of products to customers.Gross sales shown in the Statement of Profit & Loss are inclusive of Excise Duty and the value of self-consumption, inter-transfers and export incentives but excludes discounts, CST and VAT. Net sales are shown after deducting Excise duty which is disclosed at appropriate places.

1.07.02. Interest: Interest income is recognised on a time proportion basis taking into account the amount outstanding and rate applicable.

1.07.03. Dividends: Dividend from investment is recognised when the Company in which they are held declares the dividend and when the right to receive the same is established.

1.07.04. Export incentives: Benefit on account of entitlement to import goods free of duty under the "Duty Entitlement Pass Book under Duty Exemption Scheme (DEPB)", Duty Free Replenishment Certificate (DFRC), Duty Free Import Authorisation (DFIA) Scheme to the extent of their face value are accounted for as and when exports are made i.e., in the year of export. Profit or loss arising on utilisation of the same and/or sale thereof are accounted for in the year in which either the imports are made against the said DEPB, DFRC or DFIA and/or the same are sold.

1.07.05. In case of manufacturing units exempt from payment of VAT/Sales tax under State laws, VAT input credit receivable is carried forward as an asset to the extent it is eligible for set-off in subsequent years.

1.08. Accounting for fixed assets (AS - 10):

1.08.01. Fixed assets, which are revalued, are stated at revalued amounts as a result of their revaluation.

1.08.02. Other Fixed Assets are stated at cost less accumulated depreciation. Cost includes borrowing costs and all incidental expenditure net of CENVAT, Service Tax Input Credit and VAT Input Credit, wherever applicable.

1.08.03. Revenue expenses incurred in connection with project implementation insofar as such expenses relate to the period prior to the commencement of commercial production are treated as part of project cost and capitalised.

1.09. Accounting for the effects in foreign exchange rates (AS - 11):

1.09.01. Transactions denominated in foreign currencies are normally recorded at the exchange rates prevailing at the time of the transactions.

1.09.02. In conformity with revised Accounting Standard (AS - 11), issued by the Institute of Chartered Accountants of India (ICAI), monetary items denominated in foreign currencies at the year end and not covered by forward exchange contracts are translated at year end rates and those covered by forward exchange contracts are translated at the rate ruling at the date of transaction as increased or decreased by the difference between the forward rate and exchange rate on the date of transaction, such difference having been amortised over the life of the contract.

1.09.03. Non-monetary items carried at historical cost are reported using the rate at the date of transaction.

1.09.04. In respect of branches, which are integral foreign operations, all transactions are translated at rates prevailing on the date of transaction or that approximates the actual rate at the date of transaction. Branch monetary assets and liabilities are restated at the year end rates.

1.09.05. Any income or expense on account of exchange difference either on settlement or on translation is recognised in the Profit and Loss account. However, in case of long term liabilities, where they relate to acquisition of fixed assets, the income or expense on account of exchange difference is adjusted to the carrying cost of such assets.

1.10. Accounting for investments (AS - 13):

Investments, being long term in nature, are valued at cost of acquisition. Adjustment for increase/decrease in the value of investments, if any, will be accounted for on realisation of the investments. A provision for diminution is made to recognise a decline, other than temporary, in the value of long term investments.

1.11. Employee benefits (AS - 15):

1.11.01. Short-term employee benefits are recognised as an expense at the undiscounted amount in the profit and loss account of the year in which the related service is rendered.

1.11.02. Post employment and other long term employee benefits are charged off in the year in which the employee has rendered services. The amount charged off is recognised at the present value of the amounts payable determined using actuarial valuation techniques. Actuarial gains and losses in respect of past employment and other long term benefits are charged to the profit and loss account.

1.12. Borrowing costs (AS - 16):

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

1.13. Segment reporting (AS - 17):

1.13.01. Identification of Segments: Primary Segment

Business Segment:

The Company's operating businesses are organised and managed separately according to the nature of products, with each segment representing a strategic business unit that offers different products and serves different markets. The identified segments are Manufacturing & Sale of (a) Plywood & Allied products; (b) Laminates & Allied products, and (c) Medium Density Fibre Boards.

Secondary Segment Geographical Segment:

The analysis of geographical segment is based on the geographical location of the customers.

The geographical segments considered for disclosure are as follows:

• Sales within India include sales to customers located within India.

• Sales outside India include sales to customers located outside India.

1.13.02. Allocation of Common costs: Common allocable costs are allocated to each segment according to the ratio of their respective turnover to the total turnover.

1.13.03. Unallocated items: The Unallocated Segment includes general corporate income and expense items, which are not allocated to any business segment.

1.14. Related party disclosures (AS - 18):

Disclosure of related parties as required by the accounting standard is furnished in the Notes on accounts.

1.15. Leases (AS - 19):

In accordance with Accounting Standard 19 "Accounting for leases", lease arrangements, where the risks and rewards incidental to ownership of an asset substantially vests with the lessor, are recognised as operating leases. Lease payments under operating leases are recognised as an expense in the Statement of Profit and Loss.

1.16. Earnings per share (AS - 20):

Basic earnings (loss) per share are calculated by dividing the net profit or loss for the period attributable to equity shareholders by the weighted average number of equity shares outstanding during the period. Partly paid equity shares are treated as a fraction of an equity share to the extent that they were entitled to participate in dividends relative to a fully paid equity share during the reporting period.

For the purpose of calculating diluted earnings per share, the net profit or loss for the period attributable to equity shareholders and the weighted average number of shares outstanding during the period are adjusted for the effects of all dilutive potential equity shares.

1.17. Consolidated financial statements (AS - 21):

1.17.01. The consolidated financial statements of the parent and its subsidiaries are combined on a line by line basis by adding together like items of assets, liabilities, income and expenses. Intragroup balances and intragroup transactions and resulting unrealised profits (losses) are eliminated in full. Consolidated financial statements are prepared using uniform accounting policies for the like transactions and other events in similar circumstances to the extent practicable and in case of difference, the same is disclosed.

1.17.02. Investments in subsidiaries are accounted for in accordance with Accounting Standard (AS) 13 - Accounting for Investments.

1.17.03. The company has two wholly owned subsidiary companies. Further, one of the wholly owned subsidiary company has two other subsidiaries. The minority interests of the subsidiaries have been presented.

1.18. Accounting for taxes on income (AS - 22):

The differences that result between the profit considered for income taxes and the profit as per the financial statements are identified, and thereafter a deferred tax asset or deferred tax liability is recorded for timing differences, namely the differences that originate in one accounting period and reverse in another, based on the tax effect of the aggregate amount being considered. The tax effect is calculated on the accumulated timing differences at the end of an accounting period based on prevailing enacted or substantially enacted regulations. Deferred Tax Assets are recognised only if there is reasonable certainty that they will be realised and are reviewed for the appropriateness of their respective carrying values at each balance sheet date. The income tax provision for the interim period is made based on the best estimate of the annual average tax rate expected to be applicable for the full fiscal year.

1.19. Interim financial reporting (AS - 25):

The quarterly financial results are published in accordance with the requirements of listing agreements with stock exchanges.

1.20. Intangible assets (AS - 26):

1.20.01. The values of internally generated intangible assets are not recognised in the accounts.

1.20.02. Intangible assets acquired by payment e.g., Trade marks and Goodwill are disclosed at cost less amortisation on a straight-line basis over its estimated useful life.

1.21. Provisions, contingent liabilities and contingent assets (AS - 29):

1.21.01. Provisions are made for present obligations arising as a result of past events.

1.21.02. Contingent liabilities are not provided for but are disclosed by way of Notes on Accounts.

1.21.03. Contingent assets are neither accounted for nor disclosed by way of Notes on Accounts.

1.22. Central excise duty:

Excise Duty liability accruing on manufacture is accounted for as and when the liability for payment arises under the Central Excise Act, 1944. Duty on finished goods lying at stock at factory at the close of the year has not been provided for in the accounts and hence not included in the valuation of inventory of such goods. However the said liability if accounted would have no impact on the financial results for the accounting period.

1.23. Consumption of raw materials, stores & spare parts etc. :

Raw Materials, Stores and spare parts etc., consumed are exclusive of (a) Excise Duty on inputs under Cenvat Scheme, (b) Service tax input credits, (c) Insurance Claims received (d) Entry Tax under Rajasthan Local Sales Tax Act and (f) VAT Input Credit under State laws, wherever applicable.

1.24. Service tax & cess:

Various expenses are accounted for after deducting the input tax credit available in respect of Service Tax, Education Cess and Secondary & Higher Education Cess.

1.25. Taxation:

1.25.01. Tax expenses comprise of income tax, corporate dividend tax, deferred tax including applicable surcharge and cess.

1.25.02. Income tax are computed using the tax effect accounting method, where taxes are accrued in the same period the related revenue and expenses arise. A provision is made for income tax annually, based on the tax liability computed, after considering tax allowances and exemptions. Provisions are recorded when it is estimated that a liability due to disallowances or other matters is probable.

1.25.03. MAT (Minimum Alternate Tax) credit is recognised as an asset only when and to the extent there is convincing evidence that the company will pay normal income tax during the specified period. In the year in which the MAT credit becomes eligible to be recognised as an asset in accordance with the recommendations contained in guidance Note issued by the Institute of Chartered Accountants of India, the said asset is created by way of a credit to the profit and loss account and shown as MAT Credit Entitlement. The Company reviews the same at each balance sheet date and writes down the carrying out of MAT Credit Entitlement to the extent there is no longer convincing evidence to the effect that Company will pay normal Income Tax during the specified period.

1.25.04. Provision for deferred tax or credit for release thereof is accounted for as ascertained in accordance with principles stated in para 1.18 hereinabove.

1.25.05. Tax on distributed profits payable in accordance with the provisions of section 115O of the Income Tax Act, 1961 is in accordance with the Guidance Note on "Accounting for Corporate Dividend Tax" regarded as a tax on distribution of profits and is not considered in determination of profits for the period.


Mar 31, 2011

1.01 Disclosure of Accounting Policies (AS-1):

1. 01.01 Nature of Operation

Company is an interior infrastructure company engaged in the business of manufacturing plywood and allied products, laminates, particle boards, medium density fibreboards, etc. through its factories at various locations and branches & dealers' network spread all over the country. It has two wholly owned subsidiary companies operating in Singapore & America. It imports raw materials for manufacturing and also finished goods for trading. Manufactured goods are sold both in domestic and overseas markets. The Overseas subsidiaries of the Company are engaged in the business of trading in similar products.

1.01.02 Accounting Concepts & Basis of Presentation

The financial statements are prepared in accordance with Indian Generally Accepted Accounting Principles (GAAP) under the historical cost convention on the accrual basis, except for certain fixed assets which are revalued. GAAP comprises mandatory accounting standards as specified in the Company (Accounting Standards) Rules 2006, the provisions of the Companies Act, 1956 and guidelines issued by the Securities and Exchange Board of India. Accounting policies have been consistently applied except where a newly issued accounting standard is initially adopted or a revision to an existing accounting standard requires a change in the accounting policy hitherto in use. The management evaluates all recently issued or revised accounting standards on an on-going basis. Where changes are made in presentation, the comparative figures of the previous year are regrouped and re-arranged accordingly.

1.01.03 Use of Estimates

The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent liabilities at the date of the financial statements and the results of operations during the reporting period end. Although these estimates are based upon management's best knowledge of current events and actions, actual results could differ from these estimates.

1.02 Valuation of Inventories (AS-2)

1.02.01 Stock of Raw Materials, Stores and spare parts are valued at cost; and of those in transit, at port and at Bonded Warehouse related to these items are valued at cost to date.

1.02.02 Goods-in-process is valued at cost.

1.02.03 Stock of Finished goods and semi-finished goods are valued at cost or net realisable value whichever is lower.

1.02.04 Waste and scraps are accounted at estimated realisable value.

1.02.05 Cost of inventories is generally ascertained on the 'weighted average' basis. Goods-in-process, finished and semi-finished goods are valued on absorption cost basis.

1.03 Cash Flow Statement (AS - 3):

Cash flows are reported using indirect method, whereby profit before tax is adjusted for the effects of transactions of a non-cash nature and any deferrals or accruals of past or future cash receipts or payments. The cash flow from regular revenue generating, financing and investing activities of the Company is segregated. Cash and cash equivalents in the balance sheet comprise cash at bank (excluding pledged term deposits), cash/cheques in hand and short term investments with an original maturity of three months or less.

1.04 Contingencies and Events Occurring After Balance Sheet Date (AS -4):

Disclosure of contingencies as required by the accounting standard is furnished in the Notes on accounts.

1.05 Net Profit or Loss for the Period, Prior Period Items and Changes in Accounting Policies (AS - 5):

Net Profit or loss for the period and prior period items are shown separately in the Profit & Loss Account.

1.06 Depreciation (AS - 6):

1.06.01 Depreciation on Fixed Assets is provided for on straight-line method in accordance with and generally at the rates specified in Schedule XIV to the Companies Act, 1956. Leasehold lands at Kriparampur, Rudrapur and Rajkot units are amortised over the period of lease. Other leasehold lands are not amortised.

1.06.02 Depreciation in respect of additions to assets has been charged on pro rata basis with reference to the period of use of such assets. The provision for depreciation for multiple shifts has been made in respect of eligible assets on the basis of operation of respective units. In respect of continuous process plant, depreciation has been provided as per rates prescribed in Schedule XIV of the Companies Act, 1956.

1.07 Construction Contracts (AS-7):

This Standard is not applicable in case of the Company.

1.08 Revenue Recognition (AS -9):

Revenue is recognized to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured.

1.08.01 Sale of Goods: Sales are accounted for on despatch of products to customers. Gross sales shown in the Profit & Loss Account are inclusive of Excise Duty, Value added Tax/Sales Tax and the value of self-consumption and inter-transfers but excludes discounts. Net sales are shown after deducting Excise duty and Value Added Tax/Sales Tax which are disclosed at appropriate places.

1.08.02 Interest: Interest income is recognized on a time proportion basis taking into account the amount outstanding and rate applicable.

1.08.03 Dividends: Dividend from investment is recognized when the Company in which they are held declares the dividend and when the right to receive the same is established.

1.08.04 Export incentives: Benefit on account of entitlement to import goods free of duty under the "Duty Entitlement Pass Book under Duty Exemption Scheme (DEPB)", Duty Free Replenishment Certificate (DFRC), Duty Free Import Authorisation (DFIA) Scheme are accounted for in the year of export.

1.08.05 In case of manufacturing units exempt from payment of VAT/Sales tax under State laws, VAT input credit receivable is carried forward as an asset to the extent it is eligible for set-off in subsequent years.

1.09 Accounting for Fixed Assets (AS - 10):

1.09.01 Fixed assets, which are revalued, are stated at revalued amounts as a result of their revaluation.

1.09.02 Other Fixed Assets are stated at cost less accumulated depreciation. Cost includes borrowing costs as per Accounting Standard AS-16 issued by Institute of Chartered Accountants of India (ICAI) and all incidental expenditure net of CENVAT, Service Tax Input Credit and VAT Input Credit, wherever applicable.

1.09.03 Revenue expenses incurred in connection with project implementation insofar as such expenses relate to the period prior to the commencement of commercial production are treated as part of project cost and capitalized.

1.10 Accounting for the Effects in Foreign Exchange Rates (AS - 11):

1.10.01 Transactions denominated in foreign currencies are normally recorded at the exchange rates prevailing at the time of the transactions.

1.10.02 In conformity with revised Accounting Standard (AS - 11), issued by the Institute of Chartered Accountants of India (ICAI), monetary items denominated in foreign currencies at the year end and not covered by forward exchange contracts are translated at year end rates and those covered by forward exchange contracts are translated at the rate ruling at the date of transaction as increased or decreased by the difference between the forward rate and exchange rate on the date of transaction, such difference having been amortised over the life of the contract.

1.10.03 Non-monetary items carried at historical cost are reported using the rate at the date of transaction.

1.11 Accounting for Government Grants (AS - 12):

The Company has not received any grants from the Government.

1.12 Accounting for Investment (AS - 13):

Investments, being long term in nature, are valued at cost of acquisition. Adjustment for increase/decrease in the value of investments, if any, will be accounted for on realisation of the investments. A provision for diminution is made to recognise a decline, other than temporary, in the value of long term investments.

1.13 Accounting For Amalgamation (AS - 14):

The accounting for amalgamations is made pursuant to the provisions of the Companies Act, 1956 and other applicable statutes pursuant to a Scheme of Amalgamation sanctioned by the High Court(s).

1.14 Employee Benefits (AS - 15):

1.14.01 Short-term employee benefits are recognized as an expense at the undiscounted amount in the profit and loss account of the year in which the related service is rendered.

1.14.02 Post employment and other long term employee benefits are charged off in the year in which the employee has rendered services. The amount charged off is recognized at the present value of the amounts payable determined using actuarial valuation techniques. Actuarial gains and losses in respect of past employment and other long term benefits are charged to the profit and loss account.

1.15 Borrowing Costs (AS - 16):

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

1.16 Segment Reporting (AS - 17):

1.16.01 Identification of Segments: Primary Segment Business Segment:

The Company's operating businesses are organized and managed separately according to the nature of products, with each segment representing a strategic business unit that offers different products and serves different markets. The identified segments are Manufacturing & Sale of (a) Plywood & Allied products; (b) Laminates & Allied products, and (c) Medium Density Fibreboards.

Secondary Segment

Geographical Segment:

The analysis of geographical segment is based on the geographical location of the customers.

The geographical segments considered for disclosure are as follows:

• Sales within India include sales to customers located within India.

• Sales outside India include sales to customers located outside India.

1.16.02 Allocation of Common costs:

Common allocable costs are allocated to each segment according to the ratio of their respective turnover to the total turnover.

1.16.03 Unallocated items:

The Unallocated Segment includes general corporate income and expense items, which are not allocated to any business segment.

1.17 Related Party Disclosures (AS - 18):

Disclosure of related parties as required by the accounting standard is furnished in the Notes on accounts.

1.18 Leases (AS - 19):

In accordance with Accounting Standard 19 "Accounting for leases", lease arrangements, where the risks and rewards incidental to ownership of an asset substantially vests with the lessor, are recognised as operating leases. Lease payments under operating lease are recognised as an expense in the profit and loss account.

1.19 Earnings Per Share (AS - 20):

Basic earnings (loss) per share are calculated by dividing the net profit or loss for the period attributable to equity shareholders by the weighted average number of equity shares outstanding during the period. Partly paid equity shares are treated as a fraction of an equity share to the extent that they were entitled to participate in dividends relative to a fully paid equity share during the reporting period.

For the purpose of calculating diluted earnings per share, the net profit or loss for the period attributable to equity shareholders and the weighted average number of shares outstanding during the period are adjusted for the effects of all dilutive potential equity shares.

1.20 Consolidated Financial Statements (AS - 21):

1.20.01 The consolidated financial statements of the parent and its subsidiaries are combined on a line by line basis by adding together like items of assets, liabilities, income and expenses. Intragroup balances and intragroup transactions and resulting unrealized profits (losses) are eliminated in full. Consolidated financial statements are prepared using uniform accounting policies for the like transactions and other events in similar circumstances to the extent practicable and in case of difference, the same is disclosed.

1.20.02 Investments in subsidiaries are accounted for in accordance with Accounting Standard (AS) 13 - Accounting for Investments.

1.20.03 As all the subsidiary companies of the group are wholly owned, minority interests in the income of the group are not presented.

1.21 Accounting for Taxes on Income (AS - 22):

The differences that result between the profit considered for income taxes and the profit as per the financial statements are identified, and thereafter a deferred tax asset or deferred tax liability is recorded for timing differences, namely the differences that originate in one accounting period and reverse in another, based on the tax effect of the aggregate amount being considered. The tax effect is calculated on the accumulated timing differences at the end of an accounting

period based on prevailing enacted or substantially enacted regulations. Deferred Tax Assets are recognized only if there is reasonable certainty that they will be realized and are reviewed for the appropriateness of their respective carrying values at each balance sheet date. The income tax provision for the interim period is made based on the best estimate of the annual average tax rate expected to be applicable for the full fiscal year.

1.22 Accounting for Investments in Associates in Consolidated Financial Statements (AS - 23):

This Standard is not applicable in case of the Company.

1.23 Discontinuing Operations (AS - 24):

This Standard is not applicable in case of the Company as the Company has not discontinued any operations during the year.

1.24 Interim Financial Reporting (AS - 25):

The quarterly financial results are published in accordance with the requirements of listing agreements with stock exchanges.

1.25 Intangible Assets (AS - 26):

1.25.01 The values of internally generated intangible assets are not recognised in the accounts.

1.25.02 Intangible assets acquired by payment e.g., Trade marks and Goodwill are disclosed at cost less amortization on a straight-line basis over its estimated useful life.

1.26 Financial Reporting of Interests in Joint Ventures (AS - 27):

This Standard is not applicable in case of the Company as the Company has not entered into any Joint Venture.

1.27 Impairment of Assets (AS - 28):

There is no indication of any impairment based on internal/external factors in relation to the assets of the Company and as such, this Standard is not applicable in case of the Company.

1.28 Provisions, Contingent Liabilities and Contingent Assets (AS - 29):

1.28.01 Provisions are made for present obligations arising as a result of past events.

1.28.02 Contingent liabilities are not provided for but are disclosed by way of Notes on Accounts.

1.28.03 Contingent assets are not accounted for but are disclosed by way of Notes on Accounts.

1.29 Central Excise Duty:

Excise Duty liability accruing on manufacture is accounted for as and when the liability for payment arises under the Central Excise Act, 1944. Duty on finished goods lying at stock at factory at the close of the year has not been provided for in the accounts and hence not included in the valuation of inventory of such goods. However the said liability if accounted would have no impact on the financial results for the accounting period.

1.30 Consumption of Raw Materials, Stores & Spare Parts Etc. :

Raw Materials, Stores and spare parts etc., consumed are exclusive of (a) Excise Duty on inputs under Cenvat Scheme, (b) Service tax input credits, (c) Insurance Claims received (d) Entry Tax under Rajasthan Local Sales Tax Act under set-off scheme and (e) VAT Input Credit under State laws, wherever applicable.

1.31 Service Tax & Cess:

Various expenses are accounted for after deducting the input tax credit available in respect of Service Tax, Education Cess and Secondary & Higher Education Cess.

1.32 Taxation:

1.32.01 Tax expenses comprise of income tax, corporate dividend tax, deferred tax including applicable surcharge and cess.

1.32.02 Income taxes are computed using the tax effect accounting method, where taxes are accrued in the same period the related revenue and expenses arise. A provision is made for income tax annually, based on the tax liability computed, after considering tax allowances and exemptions. Provisions are recorded when it is estimated that a liability due to disallowances or other matters is probable.

1.32.03 MAT (Minimum Alternate Tax) credit is recognised as an asset only when and to the extent there is convincing evidence that the Company will pay normal income tax during the specified period. In the year in which the MAT credit becomes eligible to be recognized as an asset in accordance with the recommendations contained in guidance Note issued by the Institute of Chartered Accountants of India, the said asset is created by way of a credit to the profit and loss account and shown as MAT Credit Entitlement. The Company reviews the same at each balance sheet date and writes down the carrying out of MAT Credit

Entitlement to the extent there is no longer convincing evidence to the effect that Company will pay normal Income Tax during the specified period.

1.32.04 Provision for deferred tax or credit for release thereof is accounted for as ascertained in accordance with principles stated in para 1.21 hereinabove.

1.32.05 Tax on distributed profits payable in accordance with the provisions of section 115O of the Income Tax Act, 1961 is in accordance with the Guidance Note on "Accounting for Corporate Dividend Tax" regarded as a tax on distribution of profits and is not considered in determination of profits for the period.


Mar 31, 2010

1.01 Disclosure of Accounting Policies (AS-1): 1. 01.01 Nature of Operation Company is an interior infrastructure company engaged in the business of manufacturing plywood and allied products, laminates, particle boards, medium density fibreboards, etc. through its factories at various locations and branches & dealers’ network spread all over the country. It has two wholly owned subsidiary companies operating in Singapore & America. It imports raw materials for manufacturing and also finished goods for trading. Manufactured goods are sold both in domestic and overseas markets. The Overseas subsidiaries of the Company are engaged in the business of trading in similar products.

1.01.02 Accounting Concepts & Basis of Presentation

The financial statements are prepared in accordance with Indian Generally Accepted Accounting Principles (GAAP) under the historical cost convention on the accrual basis, except for certain fixed assets which are revalued. GAAP comprises mandatory accounting standards as specified in the Company (Accounting Standards) Rules 2006, the provisions of the Companies Act, 1956 and guidelines issued by the Securities and Exchange Board of India. Accounting policies have been consistently applied except where a newly issued accounting standard is initially adopted or a revision to an existing accounting standard requires a change in the accounting policy hitherto in use. The management evaluates all recently issued or revised accounting standards on an on-going basis. Where changes are made in presentation, the comparative figures of the previous year are regrouped and re-arranged accordingly.

1.01.03 Use of Estimates:

The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent liabilities at the date of the financial statements and the results of operations during the reporting period end. Although these estimates are based upon management’s best knowledge of current events and actions, actual results could differ from these estimates.

1.02 Valuation of Inventories (AS-2):

1.02.01 Stock of Raw Materials, Stores and spare parts are valued at cost; and of those in transit, at port and at Bonded Warehouse related to these items are valued at cost to date.

1.02.02 Goods-in-process is valued at cost.

1.02.03 Stock of Finished goods and semi-finished goods are valued at cost or net realisable value whichever is lower.

1.02.04 Waste and scraps are accounted at estimated realisable value.

1.02.05 Cost of inventories is generally ascertained on the ‘weighted average’ basis. Goods-in-process, finished and semi-finished goods are valued on absorption cost basis.

1.03 Cash Flow Statement (AS - 3):

Cash flows are reported using indirect method, whereby profit before tax is adjusted for the effects transactions of a non-cash nature and any deferrals or accruals of past or future cash receipts or payments. The cash flow from regular revenue generating, financing and investing activities of the Company is segregated. Cash and cash equivalents in the balance sheet comprise cash at bank (excluding pledged term deposits), cash/cheques in hand and short term investments with an original maturity of three months or less.

1.04 Contingencies and Events Occurring after Balance Sheet Date (AS -4):

Disclosure of contingencies as required by the accounting standard is furnished in the Notes on accounts.

1.05 Net Profit or Loss for the period, prior period items and changes in Accounting Policies (AS - 5):

Net Profit or loss for the period and prior period items are shown separately in the Profit & Loss Account.

1.06 Depreciation (AS - 6):

1.06.01 Depreciation on Fixed Assets is provided for on straight-line method in accordance with and generally at the rates specified in Schedule XIV to the Companies Act, 1956. Leasehold lands at Kriparampur, Rudrapur and Rajkot units are amortised over the period of lease. Other leasehold lands are not amortised.

1.06.02 Depreciation in respect of additions to assets has been charged on pro rata basis with reference to the period of use of such assets. The provision for depreciation for multiple shifts has been made in respect of eligible assets on the basis of operation of respective units. In respect of continuous process plant, depreciation has been provided as per rates prescribed in Schedule XIV of the Companies Act, 1956.

1.07 Construction Contracts (AS-7):

This Standard is not applicable in case of the Company.

1.08 Revenue Recognition (AS -9):

Revenue is recognized to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured.

1.08.01 Sale of Goods: Sales are accounted for on despatch of products to customers. Gross sales shown in the Profit & Loss Account are inclusive of Excise Duty, Value added Tax/Sales Tax and the value of self-consumption and inter-transfers but excludes discounts. Net sales are shown after deducting Excise duty and Value Added Tax/Sales Tax which are disclosed at appropriate places.

1.08.02 Interest: Interest income is recognized on a time proportion basis taking into account the amount outstanding and rate applicable.

1.08.03 Dividends: Dividend from investment is recognized when the Company in which they are held declares the dividend and when the right to receive the same is established.

1.08.04 Export incentives: Benefit on account of entitlement to import goods free of duty under the “Duty Entitlement Pass Book under Duty Exemption Scheme (DEPB)”, Duty Free Replenishment Certificate (DFRC), DFIA are accounted for in the year of export.

1.08.05 In case of manufacturing units exempt from payment of VAT/Sales tax under State laws, VAT input credit receivable is carried forward as an asset to the extent it is eligible for set-off in subsequent years.

1.09 Accounting for Fixed Assets (AS - 10):

1.09.01 Fixed assets, which are revalued, are stated at revalued amounts as a result of their revaluation.

1.09.02 Other Fixed Assets are stated at cost less accumulated depreciation. Cost includes borrowing costs as per Accounting Standard AS-16 issued by Institute of Chartered Accountants of India (ICAI) and all incidental expenditure net of CENVAT, Service Tax Input Credit and VAT Input Credit, wherever applicable.

1.09.03 Revenue expenses incurred in connection with project implementation insofar as such expenses relate to the period prior to the commencement of commercial production are treated as part of project cost and capitalized.

1.10 Accounting for the Effects in Foreign Exchange Rates (AS - 11):

1.10.01 Transactions denominated in foreign currencies are normally recorded at the exchange rates prevailing at the time of the transactions.

1.10.02 In conformity with revised Accounting Standard (AS - 11), issued by the Institute of Chartered Accountants of India (ICAI), monetary items denominated in foreign currencies at the year end and not covered by forward exchange contracts are translated at year end rates and those covered by forward exchange contracts are translated at the rate ruling at the date of transaction as increased or decreased by the difference between the forward rate and exchange rate on the date of transaction, such difference having been amortised over the life of the contract.

1.10.03 Non-monetary items carried at historical cost are reported using the rate at the date of transaction.

1.11 Accounting for Government Grants (AS - 12):

The Company has not received any grants from the Government.

1.12 Accounting for Investment (AS - 13):

Investments, being long term in nature, are valued at cost of acquisition. Adjustment for increase/decrease in the value of investments, if any, will be accounted for on realisation of the investments. A provision for diminution is made to recognise a decline, other than temporary, in the value of long term investments.

1.13 Accounting for Amalgamation (AS - 14):

The accounting for amalgamations is made pursuant to the provisions of the Companies Act, 1956 and other applicable statutes pursuant to a Scheme of Amalgamation sanctioned by the High Court(s).

1.14 Employee Benefits (AS - 15):

1.14.01 Short-term employee benefits are recognized as an expense at the undiscounted amount in the profit and loss account of the year in which the related service is rendered.

1.14.02 Post employment and other long term employee benefits are charged off in the year in which the employee has rendered services. The amount charged off is recognized at the present value of the amounts payable determined using actuarial valuation techniques. Actuarial gains and losses in respect of past employment and other long term benefits are charged to the profit and loss account.

1.15 Borrowing Costs (AS - 16):

Borrowing costs that are attributable to the acquisition or construction of qualifying assets are capitalised as part of the

cost of such assets. A qualifying asset is one that takes necessarily substantial period of time to get ready for its intended use. All other borrowing costs are charged to revenue.

1.16 Segment Reporting (AS - 17):

1.16.01 Identification of Segments: Primary Segment Business Segment:

The Company’s operating businesses are organized and managed separately according to the nature of products, with each segment representing a strategic business unit that offers different products and serves different markets. The identified segments are Manufacturing & Sale of (a) Plywood & Allied products and (b) Laminates & Allied products.

Secondary Segment

Geographical Segment:

The analysis of geographical segment is based on the geographical location of the customers.

The geographical segments considered for disclosure are as follows:

- Sales within India include sales to customers located within India.

- Sales outside India include sales to customers located outside India.

1.16.02 Allocation of Common costs:

Common allocable costs are allocated to each segment according to the ratio of their respective turnover to the total turnover.

1.16.03 Unallocated items:

The Unallocated Segment includes general corporate income and expense items, which are not allocated to any business segment.

1.17 Related Party Disclosures (AS - 18):

Disclosure of related parties as required by the accounting standard is furnished in the Notes on accounts.

1.18 Leases (AS - 19):

In accordance with Accounting Standard 19 “Accounting for leases”, lease arrangements, where the risks and rewards incidental to ownership of an asset substantially vests with the lessor, are recognised as operating leases. Lease payments under operating lease are recognised as an expense in the profit and loss account.

1.19 Earnings Per Share (AS - 20):

Basic earnings (loss) per share are calculated by dividing the net profit or loss for the period attributable to equity shareholders by the weighted average number of equity shares outstanding during the period. Partly paid equity shares are treated as a fraction of an equity share to the extent that they were entitled to participate in dividends relative to a fully paid equity share during the reporting period.

For the purpose of calculating diluted earnings per share, the net profit or loss for the period attributable to equity shareholders and the weighted average number of shares outstanding during the period are adjusted for the effects of all dilutive potential equity shares.

1.20 Consolidated Financial Statements (AS - 21):

1.20.01 The consolidated financial statements of the parent and its subsidiaries are combined on a line by line basis by adding together like items of assets, liabilities, income and expenses. Intragroup balances and intragroup transactions and resulting unrealized profits (losses) are eliminated in full. Consolidated financial statements are prepared using uniform accounting policies for the like transactions and other events in similar circumstances to the extent practicable and in case of difference, the same is disclosed.

1.20.02 Investments in subsidiaries are accounted for in accordance with Accounting Standard (AS) 13 - Accounting for Investments.

1.20.03 As all the subsidiary companies of the group are wholly owned, minority interests in the income of the group are not presented.

1.21 Accounting for Taxes on Income (AS - 22):

The differences that result between the profit considered for income taxes and the profit as per the financial statements are identified, and thereafter a deferred tax asset or deferred tax liability is recorded for timing differences, namely the differences that originate in one accounting period and reverse in another, based on the tax effect of the aggregate amount being considered. The tax effect is calculated on the accumulated timing differences at the end of an accounting period based on prevailing enacted or substantially enacted regulations. Deferred Tax Assets are recognized only if there is reasonable certainty that they will be realized and are reviewed for the appropriateness of their respective carrying values at each balance sheet date. The income tax provision for the interim period is made based on the best estimate of the annual average tax rate expected to be applicable for the full fiscal year.

1.22 Accounting for Investments in Associates in Consolidated Financial Statements (AS - 23):

This Standard is not applicable in case of the Company.

1.23 Discontinuing Operations (AS - 24):

This Standard is not applicable in case of the Company as the Company has not discontinued any operations during the year.

1.24 Interim Financial Reporting (AS - 25):

The quarterly financial results are published in accordance with the requirements of listing agreements with stock exchanges.

1.25 Intangible Assets (AS - 26):

1.25.01 The values of internally generated intangible assets are not recognised in the accounts.

1.25.02 Intangible assets acquired by payment e.g., Trade marks and Goodwill are disclosed at cost less amortization on a straight-line basis over its estimated useful life.

1.26 Financial Reporting of Interests In Joint Ventures (AS - 27):

This Standard is not applicable in case of the Company as the Company has not entered into any Joint Venture.

1.27 Impairment 0f Assets (AS - 28):

There is no indication of any impairment based on internal/external factors in relation to the assets of the Company and as such, this Standard is not applicable in case of the Company.

1.28 Provisions, Contingent Liabilities And Contingent Assets (AS - 29):

1.28.01 Provisions are made for present obligations arising as a result of past events.

1.28.02 Contingent liabilities are not provided for but are disclosed by way of Notes on Accounts.

1.28.03 Contingent assets are not accounted for but are disclosed by way of Notes on Accounts.

1.29 Central Excise Duty:

Excise Duty liability accruing on manufacture is accounted for as and when the liability for payment arises under the Central Excise Act, 1944. Duty on finished goods lying at stock at factory at the close of the year has not been provided for in the accounts and hence not included in the valuation of inventory of such goods. However the said liability if accounted would have no impact on the financial results for the accounting period.

1.30 Consumption of Raw Materials, Stores & Spare Parts Etc.:

Raw Materials, Stores and spare parts etc., consumed are exclusive of (a) Excise Duty on inputs under Cenvat Scheme, (b) Service tax input credits, (c) Insurance Claims received (d) Entry Tax under Rajasthan Local Sales Tax Act under set-off scheme and (e) VAT Input Credit under State laws, wherever applicable.

1.31 Service Tax & Cess:

Various expenses are accounted for after deducting the input tax credit available in respect of Service Tax, Education Cess and Secondary & Higher Education Cess.

1.32 Taxation:

1.32.01 Tax expenses comprise of income tax, corporate dividend tax, deferred tax including applicable surcharge and cess.

1.32.02 Income taxes are computed using the tax effect accounting method, where taxes are accrued in the same period the related revenue and expenses arise. A provision is made for income tax annually, based on the tax liability computed, after considering tax allowances and exemptions. Provisions are recorded when it is estimated that a liability due to disallowances or other matters is probable.

1.32.03 MAT (Minimum Alternate Tax) credit is recognised as an asset only when and to the extent there is convincing evidence that the company will pay normal income tax during the specified period. In the year in which the MAT credit becomes eligible to be recognized as an asset in accordance with the recommendations contained in guidance Note issued by the Institute of Chartered Accountants of India, the said asset is created by way of a credit to the profit and loss account and shown as MAT Credit Entitlement. The Company reviews the same at each balance sheet date and writes down the carrying out of MAT Credit Entitlement to the extent there is no longer convincing evidence to the effect that Company will pay normal Income Tax during the specified period.

1.32.04 Provision for deferred tax or credit for release thereof is accounted for as ascertained in accordance with principles stated in para 1.21 hereinabove.

1.32.05 Tax on distributed profits payable in accordance with the provisions of section 115O of the Income Tax Act, 1961 is in accordance with the Guidance Note on “Accounting for Corporate Dividend Tax” regarded as a tax on distribution of profits and is not considered in determination of profits for the period.

Find IFSC