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Accounting Policies of Pudumjee Pulp & Paper Mills Ltd. Company

Mar 31, 2017

Notes:

- Excluding Rs. Nil lacs (Last year Rs.171.00) shown under "Current maturities of Long Term Debt" under Note No.7

- Excluding Rs.129.50 lacs (Last year Rs.172.00) shown under "Current maturities of Long Term Debt" under Note No.7

Repayable in 20 equal quarterly installments begging with 25.9.2013

- Excluding Rs. 13.50 lacs (Last year Rs.12.30 lacs) shown under "Current maturities of Long Term Debt" under Note No.7

Repayable in 36 Monthly installments beginning with 1.2.2016

Note: There has been no default in repayment of Loan & Payment of Interest in respect of any of aforesaid borrowings.

1. i) Salary, Wages, gratuity and bonus (Note ''19'') does not include a sum of Rs. 25.71 lacs(Last year Rs.

2. lacs) transferred "to stock in trade."

ii) Rates & Taxes and Professional fees Capitalized to Fixed Assets Rs. 180.80 lacs (Last year Nil).

3. a) Land admeasuring 96111.84 sqft at Thergaon,Pune costing Rs. 0.14 lac, is revalued and converted in to stock in trade on 23.10.2013 at an amount of Rs.1441.67 lacs being the Fair Market Value of the land, ascertained by the Government approved values and the resulting difference of Rs.1441.53 lacs is credited to Capital Reserve appearing under Reserves and Surplus. The Company is developing this land for constructing residential /commercial complex and expenditure of Rs. 36.92 lacs during the year and Rs. 305.03 lacs in the earlier year incurred in this regard is carried forward as a part of stock in trade.

b) Land admeasuring about 3000 Sq.Meters has been acquired by Municipal Corporation for road widening purpose in the earlier years. The Company is entitled to TDR with an outside chance of cash compensation, which is yet to be determined and as such this will be included when finally decided since the relevant documentation is yet to be finalized and executed.

c) Land & Building at Pune of the Company continues to be under first charge for the Term Loans transferred on demerger to Pudumjee Paper Products Ltd. pursuant to scheme of demerger, pending creation of securities by Pudumjee Paper Products Ltd., with bank till their release.

4. Corporate Social Responsibility expenses debited to the Profit & Loss account Rs. 35.00 lacs (Last year Rs. 40 lacs) represents amount actually spent during the year on purpose other than construction / acquisition of Assets.

5. To the best of knowledge of the company, none of the creditors are ''Small enterprise'' within its meaning under clause (m) of section 2 of the Micro, Small and Medium Enterprises Development Act, 2006 & therefore principal amount, interest paid/payable or accrued is NIL.

6.Following significant accounting policies have been adopted in preparation and presentation of the financial statements:

a) Fixed Assets are valued at cost.

b) Borrowing costs comprising interest etc. relating to projects unless deferred are capitalized up to the date of its completion and other borrowing costs are charged to Profit & Loss Account in the year of their accrual.

c) Depreciation on Machinery & Building has been provided on Straight Line Method and that on the other Assets on Written Down Value method till 31-03-2014. The depreciation is provided on all the assets based on the useful lives of the assets on straight line method w.e.f. 01/04/2014, in accordance with schedule II of the Companies Act, 2013. Lease hold land is depreciated based on period of residual lease.

d) Land treated as stock in trade duly revalued at fair market value on the date of treatment, is carried at that value together with actual development expenses incurred thereon.

e) Investments are classified into current and long term investments. Current investments are stated at lower of cost or fair value. Long term investments are stated at cost, less provision for permanent diminution in value, if any.

f) (i) Contributions to defined contribution schemes, namely, Provident Fund and Superannuation

Fund is made at pre-determined rates and is charged to the Profit & Loss Account.

(ii) Contributions to the defined benefit scheme, namely, Gratuity Fund & provision for the remaining Gratuity, Pension and for Leave encashment are made on the basis of actuarial valuations made in accordance with the revised Accounting Standard (AS) 15 at the end of each Financial Year and are charged to the Profit & Loss Account of the year.

(iii) Actuarial gains & losses are recognized immediately in the Profit & Loss Account.

g) Lease arrangement where the risks and rewards to ownership an assets substantially vest with the leasor, are recognized as operating leaseres, Lease rentals under operating leases are recognized in the statement of Profit & Loss.

h) Revenue recognition is postponed to a later year only when it is not possible to estimate it with reasonable accuracy.

i) Factors giving rise to any indication of any impairment of the carrying amount of the company''s assets are appraised at each balance sheet date to determine and provide /revert an impairment loss following accounting standard AS 28 for impairment of assets.

(b) The Deferred Tax Asset in respect of carry forward of losses and tax credit has been worked out on the basis of assessment orders, returns of income filed for subsequent assessment years and estimate of the taxable income for the year ending 31st March, 2017.

7. A dividend at the rate of Rs. 0.20 (per equity share of Rs. 2 fully paid) for the year 2016-17 aggregating to Rs. 82 lakhs has been recommended by the Board of Directors for declaration at the ensuing Annual General Meeting. A corporate tax on such dividend amounting to Rs.16.69 lakhs would become payable upon declaration of the dividend by the said Annual General Meeting and not provided in the accounts in conformity with the Accounting standard (AS 4) as revised.

8. Related party disclosures (Accounting Standard 18) :

A) Subsidiary Company

a) Pudumjee Investment & Finance Co.Ltd.

B) Associate Firms / Companies

a) M/s. Pudumjee-G : Corp Developers.

b) Pudumjee Industries Limited.

c) Pudumjee Plant Laboratories Limited.

d) Pudumjee Hygine Products Limited.

e) Pudumjee Holdings Limited.

f) Pudumjee Paper Products Limited.

g) G:Corp Township Pvt.Ltd.

i) Segment Relates to -

a) Construction Activity Development of land for residential / commercial building carried directly or through firm.

b) Power Segment relates to Power Generation Activity Wind Power Turbines.

c) Other segment relates to activities not covered by aforesaid segments.

ii) The figures in brackets relates to earlier year, regrouped wherever necessary

9. The Company had entered into lease/ leave & license agreements (including leave & license agreement pursuant to the scheme) for commercial use on terms and conditions as specified in their agreements for period ranging from 2 years to 5 years. In respect of this agreement the future minimum lease/ rental payments receivable /payable is as under :

(b) The Firm is engaged in construction and sale of residential flats. It has followed completed building method till 31st March, 2015 However in view of newly introduced tax accounting standards the firm has instead adopted percentage completion method.

b) The Joint Venture Company will engage in development, construction and sale of commercial/ residential premises after concluding joint development agreement with a land owner.

10.The following are the disclosures required under revised Accounting Standards (AS) 15 in respect of Employee Benefits:

a) An amount of Rs. 34.29 lacs (Last year Rs. 34.10 lacs) has been recognized as an expense for defined contribution plans by way of Company''s contribution to Provident Funds & Super annotation Fund.

b) The defined benefits plans comprise of Gratuity Plan and Leave Encashment Plan. The Gratuity Plan is partly funded with Life Insurance Corporation of India under its Cash Accumulation Plan.

11.Disclosure of the details of specified Bank Notes (SBN) held and transacted during the period from 8th November, 2016 to 30th December, 2016, required as per Notification G.S.R.308 (E) dated 30th March 2017 issued by the Ministry of Corporate Affairs.

12.The items and figures for the previous year have been recast and regrouped wherever necessary to conform to this year''s presentation

Perquisites include housing/house rent allowance with electricity, gas, medical expenses, leave travel assistance, club fees, accident insurance, contribution to provident and Superannuation fund etc., but exclude provision for gratuity and pension.

- Severance fees, stock options and notice period are not applicable in case of Executive Directors.

- Non-Executive Directors'' are entitled to regular sitting fees and re-imbursement of expenses incurred for attending each meeting of Board or Committee thereof, further Professional fees are payable on case to case basis to M/s. Kanga & Co., Advocates , in which Ms. Preeti Gautam Mehta, (NonExecutive Independent Director of the Company) is a partner. The same may also be considered to be disclosures for all pecuniary relationship or transactions of the Non-Executive Director''s vis-a-vis the Company in the Annual Report.

- The details for shares held by Directors as on 31-03-2017 are as under:

Except Mr. Arunkumar Mahabir Prasad Jatia who holds 20,48,000 equity shares of Rs. 2/- each of the Company, none of the other Directors namely Mr. Ved Prakash Leekha, Mr. Surendra Kumar Bansal, Dr. Ashok Kumar, Mr. Gautam Khaitan, Mr. Nandan Damani, Mr. Vinod Kumar Beswal, Ms. Preeti Gautam Mehta hold any equity shares of the Company.


Mar 31, 2016

Notes:

(a) Notes: (a) Excluding N.A. (Last year Rs, 427.78 lacs) shown under "Current maturities of Long Term Debt" under Note No.8.

Repayble in 18 equal quarterly installments beginning with 04.02.2013.

(b) Excluding Rs, 171.00 (Last year Rs, 180.00 lacs) shown under "Current maturities of Long Term Debt"under Note No.8.

Repayble in 20 equal quarterly installments beginning with 21.06.2012.

(c) Excluding Rs, 172.00 (Last year Rs, 172.00 lacs) shown under "Current maturities of Long Term Debt"under Note No.8.

Repayble in 20 equal quarterly installments beginning with 25.09.2013.

(d) Excluding N.A. (Last year Rs, 500.00 lacs) shown under "Current maturities of Long Term Debt"under Note No.8.

Repayble in 20 equal quarterly installments beginning with 16.01.2014.

(e) Excluding Rs, - (Last year Rs, 10.46 lacs) shown under "Current maturities of Long Term Debt" under Note No.8. Repayble in 60 Monthly installments beginning with 15.12.2012.

(f) Excluding Rs, 12.30 lacs (Last year Rs, 6.90 lacs ) shown under "Current maturities of Long Term Debt" under Note No.8.

Repayble in 36 Monthly installments beginning with 1.2.2016

(g) There has been no default in repayment of Loan & Payment of Interest in respect of any of aforesaid borrowings.

Security : All other secured loans are transferred to Pudumjee Paper Products Ltd.on demerger.

* Land & Building at Pune of the Company continues to be under first Charge for the Term Loans transferred to Pudumjee Paper Products Ltd.,pursuant to scheme of demerger,pending agreement with bank till their release.

Notes: (a) Excluding (i) N.A. (Last year Rs, Nil lacs) being deposits for 1 year shown under "Short Term Borrowings" under Note No 6, and (ii) Rs, Nil(Last year Rs, 1,861.14 lacs) shown under "Current maturities of Long Term Fixed Deposits"under Note No.8.

(b) Excluding N.A. (Last year Rs, 159.96 lacs) shown under "Current maturities of "Long Term Unsecured Debts" under Note No. 8.

(c) There has been no default in repayment of Loan & Payment of Interest in respect of any of aforesaid borrowings.

* Repayble after 2 years and 3 years from the date of acceptance of each Deposits.

(d) Fixed Deposits and Deferred Sales Tax Liability transferred to Pudumjee Paper Products Ltd.on demerger.

1 Note on Scheme of Arrangement & Demerger

i) Pursuant to the Scheme of Arrangement (“the Scheme”) between the company, Pudumjee Industries Ltd (PIL), Pudumjee Hygiene Products Ltd (PHPL), Pudumjee Paper Products Ltd (PPPL) and their respective shareholders and creditors as approved by the High Court of Mumbai vide its order dated 8th January, 2016, which became effective on 1st February, 2016 (effective date) on filling with the Registrar of Companies, all the assets and liabilities of the Paper Manufacturing Business of the Company have been transferred to the PPPL (Transferee Company) at their respective book values on a going concern basis with effect from the appointed date (i.e 1st April, 2014). Accordingly, the Scheme of Arrangement has been given effect to in these accounts. The details of Assets & Liabilities transferred, as on 1st April,2014 and also corresponding reduction of Reserves & Surplus are as under :

ii) The net profit of the demerged paper manufacturing business of the company for the period from appointed date i.e. 1st April,2014 to 31st March,2015 of Rs, 440.74 lacs is adjusted in surplus i.e. balance in the Profit & Loss Account.

iii) As per the Scheme, each share holder of the Company, as on record date, has received 37 equity share of Rs, 1 each in the Pudumjee Paper Products Ltd, for every 20 Equity Shares of Rs, 2 each in the Company.

iv) The transactions pertaining to Paper Manufacturing business from the appointed date (i.e. 1st April, 2014) upto the effective date (i.e. 1st February, 2016) of the Scheme of arrangement, have been deemed to be made by Pudumjee Paper Products Ltd..

v) Consequent to the Demerger of the Paper Manufacturing business of the Company in terms of the Scheme, the Financial Statements of the Company for the year ended March 31, 2016, do not include operations of the Demerged paper manufacturing business and therefore are not comparable with the figures of the Previous Year ended March 31, 2015.

vi) The revenue and expense in respect of the ordinary activities attributable to the Discontinuing Operations:

ix Pursuant to the Scheme of Arrangement, the Secured Loans and facilities concerning the demerged business stands transferred to the Pudumjee Paper Products Ltd. along with the Security created therfor on the assets transferred. However the security, whether by way of first charge or second charge on other assets i.e. Land and Buildings at Pune which have not been transferred by the Company, continues to subsist in favour of the lenders for their loans (as per the agreements initially executed by the Company in favour of the lenders while availing the loans), till their release, until appropriate documents are executed.

x Pursuant to the Scheme, Land & Buildings at Pune , belonging to the Company have been given on Leave & License basis to Pudumjee Paper Products(PPPL), on terms for 5 years from the effective date, i.e.1st February,2016, to enable PPPL to shifts its operations, in due course of time, to the Industrial Area of Mahad District - Raigad. 24.09 Salary, Wages, gratuity and bonus (Note Rs,21Rs, ) does not include a sum of Rs, 22.21 lacs (Last year Rs, 109.15 lacs) transferred to stock.

24.10 a) Land admeasuring 96111.84 sqft at Thergaon,Pune costing Rs, 0.14 lac, is revalued and converted and converted in to stock in trade on 23.10.2013 at an amount of Rs, 1441.67 lacs being the Fair Market Value of the land , ascertained by the Government approved values and the resulting difference of Rs, 1441.53 lacs is credited to Capital Reserve appearing under Reserves and Surplus. The Company is developing this land for constructing residential /commercial complex and expenditure of Rs, 34.11 lacs during the year and Rs, 270.92 lacs in the earlier year incurred in this regard is carried forward as a part of stock in trade.

b) Land admeasuring about 3000 Sq.Meters has been acquired by Municipal Corporation for road widening purpose in the earlier years. The Company is entitled to TDR with an outside chance of cash compensation, which is yet to be determined and as such this will be included when finally decided since the relevant documentation is yet to be finalized and executed.

c) Interest amounting to Rs, Nil (previous year Rs, 10.71 lacs) has been capitalized during the year to Machinery under installation.

24.12 Corporate Social Responsibility expenses debited to the Profit & Loss account Rs, 40.00 lacs (Last year Rs, 10.20 lacs) represents amount actually spent during the year on purpose other than construction / acquisition of Assets.

24.13 To the best of knowledge of the company, none of the creditors are ''Small enterprise'' within its meaning under clause (m) of section 2 of the Micro, Small and Medium Enterprises Development Act, 2006 & therefore principal amount ,interest paid/payable or accrued is NIL.

24.15 Following significant accounting policies have been adopted in preparation and presentation of the financial statements:

a) Fixed Assets are valued at cost.

b) Borrowing costs comprising interest etc. relating to projects unless deferred , are capitalized up to the date of its completion and other borrowing costs are charged to Profit & Loss Account in the year of their accrual .

c) Depreciation on Machinery & Building has been provided on Straight Line Method and that on the other Assets on Written Down Value method till 31-03-2014. The depreciation is provided on all the assets based on the useful lives of the assets on straight line method w.e.f. 01/04/ 2014 , in accordance with schedule II of the Companies Act 2013. Lease hold land is depreciated based on period of residual lease.

d) Finished goods stock is valued at lower of cost or market value. Land treated as stock in trade duly revalued at fair market value on the date of treatment, is carried at that value together with actual development expenses incurred thereon.

All other inventories are valued at lower of cost on First In First Out Method or realizable value.

e) Investments are classified into current and long term investments. Current investments are stated at lower of cost or fair value. Long term investments are stated at cost, less provision for permanent diminution in value ,if any.

f) (i) Contributions to defined contribution schemes ,namely, Provident Fund and Superannuation

Fund is made at a pre-determined rates and are charged to the Profit & Loss Account.

(ii) Contributions to the defined benefit scheme ,namely, Gratuity Fund & provision for the remaining Gratuity, Pension and for Leave encashment are made on the basis of actuarial valuations made in accordance with the revised Accounting Standard (AS) 15 at the end of each Financial Year and are charged to the Profit & Loss Account of the year.

(iii) Actuarial gains & losses are recognized immediately in the Profit & Loss Account.

g) Foreign Exchange Transactions are recorded at the then prevailing rate. Closing balances of Assets & Liabilities relating to foreign currency transactions are converted into rupees at the rates prevailing on the date of the Balance Sheet.

The difference for transactions are dealt with in the Profit & Loss Account.

h) Lease arrangement where the risks and rewards to ownership an assets substantially vest with the leas or, are recognized as operating leases, Lease rentals under operating leases are recognized in the statement of Profit & Loss.

i) Revenue recognition is postponed to a later year only when it is not possible to estimate it with reasonable accuracy.

j) Factors giving rise to any indication of any impairment of the carrying amount of the company''s assets are appraised at each balance sheet date to determine and provide /revert an impairment loss following accounting standard AS 28 for impairment of assets.

and regrouped wherever necessary to conform to this year''s present


Mar 31, 2015

A) Fixed Assets are valued at cost.

b) Borrowing costs comprising interest etc. relating to projects unless deferred , are capitalised up to the date of its completion and other borrowing costs are charged to Profit & Loss Account in the year of their accrual.

c) Depreciation on Machinery & Building has been provided on Straight Line Method and that on the other Assets on Written Down Value method till 31 -03-2014. The depreciation is provided on all the assets based on the useful lives of the assets on straight line method w.e.f. 01/04/2014,in accordance with schedule II of the Companies Act 2013. Lease hold land is depreciated based on period of residual lease.

d) Finished paper stock is valued at lower of cost or market value. Land treated as stock in trade duly revalued at fair market value on the date of treatments carried at that value together with actual development expenses incurred thereon.

All other inventories are valued at lower of cost on First In First Out Method or realisable value.

e) Investments are classified into current and long term investments.Current investments are stated at lower of cost or fair value.Long term investments are stated at cost, less provision for permanent diminution in value, if any.

f) (i) Contributions to defined contribution schemes,namely,Provident Fund and Supernnuation Fund is made at a pre-determined rates and are charged to the Profit & Loss Account.

(ii) Contributions to the defined benefit scheme,namely,Gratuity Fund & provision for the remaining Gratuity,Pension and for Leave encashment are made on the basis of actuarial valuations made in accordance with the revised Accounting Standard (AS) 15 at the end of each Financial Year and are charged to the Profit & Loss Account of the year.

(iii) Actuarial gains & losses are recognized immediately in the Profit & Loss Account.

g) Foreign Exchange Transactions are recorded at the then prevailing rate.Closing balances of Assets & Liabilities relating to foreign currency transactions are converted into rupees at the rates prevailing on the date of the Balance Sheet.

The difference for transactions are dealt with in the Profit & Loss Account.

h) Revenue recognition is postponed to a later year only when it is not possible to estimate it with reasonable accuracy.

i) Factors giving rise to any indication of any impairment of the carrying amount of the company's assets are appraised at each balance sheet date to determine and provide /revert an impairment loss following accounting standard AS 28 for impairment of assets.


Mar 31, 2014

1.01 Salary, Wages, gratuity and bonus (Schedule ''K'') does not include a sum of Rs. 83.99 lacs (Last year Rs. 88.62 lacs) transferred to other accounts.

1.02 a) The company has acquired leasehold land, building and board manufacturing machine at Mahad Dist. Raigad in the earlier years, where a paper machine was being installed under an expansion programme. The leasehold land,colony and buildings are shown under Tangible Fixed Assets Schedule (Note No.10) and is appropriately amortized and depreciated for the year and Factory Building, Machinery and all other assets together with related expenditure have been shown under Capital work-in-progress. b) In view of the aforesaid expansion project having been been temporarily deferred, during the year, the borrowing and other recurring costs incurred for the year aggregating to Rs. 310.79 lacs have been treated as revenue expenditure and charged to the Profit & Loss account forthe year ended 31-03-2014 under the respective heads.Such expenditure aggregating Rs. 433.25 lacs incurred in the previous year had been capitalized to the project cost.

1.03 a) Land admeasuring 96111.84 sqft at Thergaon,Pune costing Rs. 0.14 lac, used in relation to operation of factory, is revalued and converted in to stock in trade on 23.10.2013 at an amount of Rs. 1441.67 lacs being the Fair Market Value of the land, ascertained by the Government approved valuers and the resulting difference of Rs. 1441.53 lacs is credited to Capital Reserve appearing under Reserves and Surplus. The Company is developing this land for constructing residential /commercial complex and expenditure of Rs. 164.63 lacs incurred in this regard is carried forward as a part of stock in trade.

b) Land admeasuring about 3000 Sq. Meters has been acquired by Municipal Corporation for road widening purpose in the earlier years.The Company is entitled to TDR with an out side chance of cash compensation, which is yet to be determined and as such this will be included when finally decided since the relevant documentation is yet to be finalised and executed.

1.04 To the best of knowledge of the company, none of the creditors are ''Small enterprise'' within its meaning under clause (m) of section 2 of the Micro, Small and Medium Enterprises Development Act, 2006 & therefore principal amount, interest paid/payable or accrued is NIL.

1.05 Details of significant lease.

The company has entered into lease agreement in terms of which it has given buildings on rent on the usual terms and conditions and such payments received for the year have been recognized in the Profit & Loss Account under other income.


Mar 31, 2013

A) Fixed Assets are valued at cost.

b) Borrowing costs comprising interest etc. relating to projects are capitalised up to the date of its completion and other borrowing costs are charged to Profit & Loss Account in the year of their accrual .

c) Depreciation on Machinery & Building has been provided on Straight Line Method and that on the other Assets on Written Down Value method in accordance with Schedule XIV of the Companies Act, 1956 as in force as on the date of Balance Sheet. Lease hold land is depreciated based on period of residual lease.

d) Finished paper stock is valued at lower of cost or market value. All other inventories are valued at lower of cost on First In First Out Method or realisable value.

e) Investments are classified into current and long term investments.Current investments are stated at lower of cost or fair value.Long term investments are stated at cost, less provision for permanent diminution in value, if any.

f) (i) Contributions to defined contribution schemes,namely,Provident Fund and Supernnuation Fund is made at a pre-determined rates and are charged to the Profit & Loss Account.

(ii) Contributions to the defined benefit scheme,namely,Gratuity Fund & provision for the remaining Gratuity and for Leave encashment are made on the basis of actuarial valuations made in accordance with the revised Accounting Standard (AS) 15 at the end of each Financial Year and are charged to the Profit & Loss Account of the year.

(iii) Actuarial gains & losses are recognized immediately in the Profit & Loss Account.

g) Foreign Exchange Transactions are recorded at the then prevailing rate. Closing balances of Assets & Liabilities relating to foreign currency transactions are converted into rupees at the rates prevailing on the date of the Balance Sheet.

The difference for transactions are dealt with in the Profit & Loss Account.

h) Revenue recognition is postponed to a later year only when it is not possible to estimate it with reasonable accuracy.

i) Factors giving rise to any indication of any impairment of the carrying amount of the company''s assets are appraised at each balance sheet date to determine and provide /revert an impairment loss following accounting standard AS 28 for impairment of assets.


Mar 31, 2012

A) Fixed Assets are valued at cost.

b) Borrowing costs comprising interest etc. relating to projects are capitalised up to the date of its completion and other borrowing costs are charged to Profit & Loss Account in the year of their accrual.

c) Depreciation on Machinery & Building has been provided on Straight Line Method and that on the other Assets on Written Down Value method in accordance with Schedule XIV of the Companies Act, 1956 as in force as on the date of Balance Sheet. Lease hold land is depreciated based on period of residual lease.

d) Finished paper stock is valued at lower of cost or market value. All other inventories are valued at lower of cost on First In First Out Method or realisable value.

e) Investments are classified into current and long term investments.Current investments are stated at lower of cost or fair value.Long term investments are stated at cost, less provision for permanent diminution in value ,if any.

f) (i) Contributions to defined contribution schemes,namely,Provident Fund and Superannuation Fund is made at a pre-determined rates and are charged to the Profit & Loss Account.

(ii) Contributions to the defined benefit scheme,namely,Gratuity Fund & provision for the remaining Gratu- ity and for Leave encashment are made on the basis of actuarial valuations made in accordance with the revised Accounting Standard (AS) 15 at the end of each Financial Year and are charged to the Profit & Loss Account of the year.

(iii) Actuarial gains & losses are recognized immediately in the Profit & Loss Account.

g) Foreign Exchange Transactions are recorded at the then prevailing rate.Closing balances of Assets & Liabilities relating to foreign currency transactions are converted into rupees at the rates prevailing on the date of the Balance Sheet.

The difference for transactions are dealt with in the Profit & Loss Account.

h) Revenue recognition is postponed to a later year only when it is not possible to estimate it with reasonable accuracy.

i) Factors giving rise to any indication of any impairment of the carrying amount of the company's assets are appraised at each balance sheet date to determine and provide /revert an impairment loss following accounting standard AS 28 for impairment of assets.

(b) The Deferred Tax Asset in respect of carry forward of losses and tax credit has been worked out on the basis of assessment orders,returns of income filed for subsequent assessment years and estimate of the taxable income for the year ending 31st March ,2012.


Mar 31, 2011

1 Miscellaneous sales have been stated net of stocks.

2 Interest,dividend and other income received includes Income tax deducted at source Rs. 59.70 lacs (Last year Rs.58.19 lacs)

3 Salary, Wages, gratuity and bonus (Schedule ‘K' ) does not include a sum of Rs. 90.41 lacs (Last year Rs.74.75 lacs) transferred to other accounts.

4 (a) The company is in the process of setting up a unit at Mahad Dist.Raigad for manufacturing Paper.

(b) The wind power plant of a capacity of 1.25 MW has commenced operations during the year and the remaining part of the project of 1.25 MW is expected to commence shortly.

(c) Borrowing cost comprising interest etc. of Rs.1.13 lacs (Last year Nil) and the expenses of Rs. 194.87 lacs (last year Nil) relating to the projects have been capatilised.

5 To the best of knowledge of the company, none of the creditors are ‘Small enterprise' within its meaning under clause (m) of section 2 of the Micro,Small and Medium Enterprises Development Act, 2006 & therefore principal amount,interest paid/payable or accrued is NIL.

6 Estimate of contracts remaining to be executed on capital account and not provided for amounted to Rs. 2724.08 lacs (Last year Rs. 7.50 lacs).

7 Land admeasuring about 3000 Sq.Meters has been acquired by Municipal Corporation for road widening purpose in the earlier years.The Company is entitled to TDR with an out side chance of cash compensation, which is yet to be determined and as such this will be included when finally decided since the relevant documentation is yet to be finalised and executed.

8 (a) The assets being paper machine No.8 and certain equipments of pulp mill amounting to Rs. 1702.49 lacs have been written down to their recoverable amount being the selling price as estimated by the management, as they are no longer in use. Consequently the estimated impairment loss of Rs. 1397.26 lacs has been charged to the profit and loss account.

(b) Company's contribution /reimbursements for the assets owned or that may be owned by Government authorities being dam, weir etc.amounting to Rs.629.36 lacs, not amortized earlier have been written off as prior period expenses in the profit and loss account.

9 Details of significant lease

The company has entered into lease agreement in terms of which it has given buildings on rent on the usual terms and conditions and such payments received for the year have been recognized in the Profit & Loss Account under other income.


Mar 31, 2010

1. Miscellaneous sales have been stated net of stocks.

2. Interest, dividend and other income received includes Income tax deducted at source Rs. 58.19 lacs (Last year Rs. 81.47 lacs)

3. Salary, Wages, gratuity and bonus (Schedule ‘L’) does not include a sum of Rs. 74.75 lacs (Last year Rs. 64.84 lacs) transferred to other accounts.

4. Development and Research Expenditure includes Rs. 2.02 lac (Last year Rs. 11.39 lac) for Equipments.

5. To the best of knowledge of the company, none of the creditors are Small enterprise’ within its meaning under clause (m) of section 2 of the Micro, Small and Medium Enterprises Development Act, 2006 & therefore principal amount, interest paid/payable or accrued is NIL.

6. Estimate of contracts remaining to be executed on capital account and not provided for amounted to Rs. 7.50 lacs (Last year Rs. 14.86 lacs).

7. The expenditure for dam, weir, etc. as shown in Schedule ‘E’- Fixed Assets represents expenditure, contributed to Government authorities in respect of assets owned or that may be owned by them and therefore has not been subjected to depreciation in conformity with the Generally Accepted Accounting Principles.

8. Land admeasuring about 4000 Sq. Meters has been acquired by Municipal Corporation for road widening purpose in the earlier years. The Company is entitled to TDR with an out side chance of cash compensation, which is yet to be determined and as such this will be included when finally decided since the relevant documentation is yet to be finalised and executed. A

9. The Equity Shares of the company were sub-divided from Rs. 10 each to Rs. 2 per share w.e.f. 1.4.2009 by altering the capital clause in Memorandum of Association vide Resolution Passed at EOGM of Shareholders held on 27.2.2009.

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