Notes to Accounts of AMJ Land Holdings Ltd.

Mar 31, 2018

Note 1:General information about the Company:

AMJ Land Holdings Limited (formerly Pudumjee Pulp and Paper Mills Limited) (the "Company") is a public company domiciled in India and incorporated under the provisions of the Companies Act, 1956. Its shares are listed on two stock exchanges in India. The registered office of the Company is located at Thergaon, Pune-411033, Maharashtra, India. The Company is primarily engaged in the business of real estate development, leasing and wind power.

The standalone financial Statements were authorised for issue in accordance with resolution passed by the Board of Directors of the Company on May 26, 2018.

The company''s investment property consists of industrial land and buildings and commercial property in India. The company has no restrictions on the realisability of it''s investment property and no contractual obligation to purchase, construct or develop investment properties or for repairs, maintenance and enhancements.

Estimation of fair value

The company obtains independent valuation for its investment properties annually. The fair values of investment properties have been determined by A.D.Joshi Chartered Engineers and Valuers LLP. The fair market value done by valuers is based on physical inspection of properties and using comparable transfer instances of industrial plots to nearby locations for land and for building along with the prevailing rates, appropriate depreciation is considered .

*In the previous year 2013-14, one portion of land costing Rs. 0.14 lakhs was converted from fixed asset (i.e PP&E) into Stock-in-trade after revaluing the asset at an amount of Rs.1441.67 lakhs, being the fair value of the land on 23.10.2013 (i.e. the date of conversion/revaluation). The revaluation gain is credited to Capital Reserves.

The Company has only one class of equity shares having a par value of Rs.2 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, except in case of Interim Dividend.

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

9(d) Nature and purpose of reserves

Retained earnings:

Retained earnings comprises of the Company''s undistributed earnings after taxes.

Capital reserve:

Capital reserve comprises of :

i) Rs.5.86 lakhs on reissue of forfeited shares

ii) Rs.1441.53 on treatment of land as stock in trade (Refer note 7)

iii) Rs.32.4 lakhs on consolidation of joint operations with Pudumjee Gcorp Developers (Refer note 32E)

Securities premium reserve:

Securities premium reserve is used to record premium on issue of shares. The reserve is utilised in accordance y with the provisions of the Companies Act, 2013.

a) Repayable in 8 quarterly installments beginning with 31-Mar-2018 .Maturity date is 31-Dec-2019, coupon rate of interest of PLR -1.75% p.a.

b) Repayable in 20 equal quarterly installments beginning with 21-Jun-2012. Maturity date is 21-Mar-2017, coupon rate of interest of PLR-2% p.a.

c) Repayable in 20 equal quarterly installments beginning with 25- Sept-2013. Maturity date is 25-Dec-2017, coupon rate of interest of OBR 1.5% p.a.

d) Repayable in 36 monthly installments beginning with 01-Feb-2016. Maturity date is 01-Feb-2019, coupon rate of interest @ 10.7% p.a.

(i) Leave obligations - The leave obligation covers the Company''s liability for accumulated leaves that can be encashed or availed.

(ii) Defined benefit plans: a. Gratuity - The Company provides for gratuity for employees as per the terms of employment. Employees who are in continuous service for a period of 5 years are eligible for gratuity. The amount of gratuity payable on retirement/termination is the employees last drawn basic salary per month computed proportionately for 15 days salary multiplied for the number of years of service. The scheme is funded with Life Insurance Corporation of India (LIC). In addition, employees who have completed 20 years of service are eligible to additional gratuity computed proportionately for 7 days of last drawn basic salary per month, multiplied for the number of years of service. The additional gratuity benefit is unfunded.

(aa) The amounts recognised in the balance sheet and the movements in the net defined benefit obligation over the year are as follows:

The net liability disclosed above relates to funded plans. The Company has no legal obligation to settle the deficit in the funded plans with an immediate contribution or additional contribution. The Company intends to contribute in line with the recommendations of the fund administrator and the actuary.

(ab)As at April 1, 2016, March 31, 2017 and March 31, 2018, plan assets were invested in funds managed by insurer (LIC).

(ac)Through its defined benefit plans, the group is exposed to number of risks, the most significant of which are detailed below:

Asset Volatility: The Plan liabilities are calculated using a discount rate set with reference to government bond yields. If plan assets underperform, this yield will create a deficit. The plan asset investments are in funds managed by insurer. These are subject to interest rate risk.

Changes in bond yield: A decrease in government bond yields will increase plan liabilities, although this may be partially offset by an increase in the returns from plan asset.

Defined benefit liability and employer contributions:

(ad) The Company ensures that the investment positions are managed within an asset-liability matching (ALM) framework that has been developed to achieve long-term investments that are in line with the obligations under the employee benefit plans. Within the framework, the Company''s ALM objective is to match assets to the gratuity obligations by investing in funds with LIC in the form of a qualifying insurance policy.““The Company actively monitors how the duration and the expected yield of the investments are matching the expected cash outflows arising from the employee benefit obligations. The Company has not changed the process used to manage its risks from previous periods.

(ae)The Company expects to contribute Rs.23 lakhs to the defined benefit plan during the next annual reporting period.

* Discount rate is based on the prevailing market yields of Indian Government securities as at the balance sheet date for the estimated term of the obligations.

** The overall expected rate of return on assets is based on the expectation of the average long term rate of return expected on investments of the Fund during the estimated term of the obligations.

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

(iii) Defined contribution plans:

The Company also has certain defined contribution plans. Contributions are made to recognised funds for employees at the priscribed rate of basic salary as per regulations. The contributions are made to registered funds administered/approved by the government. The obligation of the Company is limited to the amount contributed and it has no further contractual nor any constructive obligation. In respect of these plans, contributions paid and recognised in the Statement of Profit and Loss are as follows:

b) Fair Value Hierarchy:-

This section explains the judgements and estimates made in determining the fair values of the financial instruments that are recognised and measured at fair value. To provide an indication about the reliability of the inputs used in determining fair value, the Company has classified its financial instruments into three levels prescribed under the accounting standard. An explanation of each level follows underneath the table.

c) Valuation technique used to determine fair value

Level 1: This hierarchy includes financial instruments measured using quoted prices. This includes listed equity instruments and mutual funds that have quoted price. The fair value of all equity instruments which are traded in the stock exchange is valued using the closing price as at the reporting period. The fair value of all mutual funds are arrived at by using closing Net Asset Value published by the respective mutual fund houses.

Level 2: Fair value of financial instruments that are not traded in an active market is determined using valuation techniques which maximize the use of observable market data and rely as little as possible on entity-specific estimates. If all significant inputs required to fair value an instrument as observable, the instrument is included in level 2.

Level 3: If one or more of the significant inputs is not based on observable data, the instrument is included in level

2. This is the case for unlisted equity securities.

d) As per Ind AS 107 "Financial Instrument:Disclosure", fair value disclosures are not required when the carrying amounts reasonably approximate the fair value. Accordingly fair value disclosures have not been made for the following financial instruments:-

1.Trade receivables

2.Cash and cash equivalent

3.Other bank balances

4.Security deposits

5.Interest accrued on deposits

6. Other payables

7.Borrowings

8.Trade payables

9.Capital creditors

10.Unpaid dividends

11.Employee dues

Note 3: FINANCIAL RISK MANAGEMENT

The Company''s business activities are exposed to a variety of financial risks, namely liquidity risk, market risks and credit risk. The Company''s senior management has the overall responsibility for establishing and governing the Company''s risk management framework. The Company has constituted a Risk Management Committee, which is responsible for developing and monitoring the Company''s risk management policies. The Company''s risk management policies are established to identify and analyze the risks faced by the Company, to set and monitor appropriate risk limits and controls, periodically review the changes in market conditions and reflect the changes in the policy accordingly. The key risks and mitigating actions are also placed before the Audit Committee of the Company.

a. MANAGEMENT OF CREDIT RISK

Credit risk is the risk of financial loss to the Company if a customer or counter-party fails to meet its contractual obligations and arises principally from the company''s receivables from customers, investments in debt securities, loans given to related parties and others.

Trade Receivables

Customer credit risk is managed by requiring customers to pay advances through progress billings before transfer of ownership, therefore, substantially eliminating the credit risk in this respect.

Based on prior experience and an assessment of the current economic environment, management believes there is no credit risk provision required. Also the company does not have any significant concentration of credit risk.

Other financial assets:-

The Company maintains exposure in cash and cash equivalents, term deposits with banks, investments in money market liquid mutual funds. The Company has set counter-parties limits based on multiple factors including financial position, credit rating, etc. The Company has given inter-corporate deposits (ICD) to its subsidiaries and associates amounting INR Rs.1508.22 lakhs (31-Mar-2017: Rs.2298.94 lakhs and 1-APR-2016: Rs.2980.53 lakhs).It also have loan given to other parties for which periodic analysis is done for any risk of default.

The Company''s maximum exposure to credit risk is the carrying value of each class of financial assets.

b. MANAGEMENT OF LIQUIDITY RISK

Liquidity risk is the risk that the Company will face in meeting its obligations associated with its financial liabilities. The Company''s approach in managing liquidity is to ensure that it will have sufficient funds to meet its liabilities when due without incurring unacceptable losses or risking damage to company''s reputation. In doing this, management considers both normal and stressed conditions.

Management monitors the rolling forecast of the company''s liquidity position on the basis of expected cash flows. This monitoring includes financial ratios and takes into account the accessibility of cash and cash equivalents. The company has access to funds from debt markets through loan from banks. The company invests its surplus funds in bank deposits and debt based mutual funds.

c. MANAGEMENT OF MARKET RISK:

Market risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of fluctuation in market prices. These comprise three types of risk i.e. currency rate , interest rate and other price related risks. Financial instruments affected by market risk include loans and borrowings, deposits and investments.

i.) Currency Risk and sensitivity:-

The Company does not have any currency risk as all operations are within India.

ii.) Interest Rate Risk and Sensitivity:-

Interest rate risk is the risk that the fair value or future cash flows on a financial instrument will fluctuate because of changes in market interest rates. The management is responsible for the monitoring of the company''s interest rate position. Various variables are considered by the management in structuring the company''s investment to achieve a reasonable, competitive cost of funding.

iii) Price Risk and Sensitivity:

The Company is mainly exposed to the price risk due to its investment in debt mutual funds and Equity instruments carried at FVOCI. The price risk arises due to uncertainties about the future market values of these investments. At 31st March 2018, the investments in debt mutual funds amounts to INR Rs.937.82 lakhs (31-Mar-2017: Rs.492.78 lakhs and 1-Apr-2016: Rs.1.09 lakhs).These are exposed to price risk.

The Company has laid policies and guidelines which it adheres to in order to minimise price risk arising from investments in debt mutual funds.

A 1% increase in prices would have led to approximately an additional INR Rs.9.37 lakhs gain in the Statement of Profit and Loss (2016-17: Rs.4.93 lakhs gain). A 1% decrease in prices would have led to an equal but opposite effect. The company also have investment in equities of other companies. The company treats the investment as strategic and thus fair value the investment through OCI. Thus the changes in the market price of the securities are reflected under OCI and hence not having impact on profit and loss. The profit or loss on sale will be considered at the time of final disposal or transfer of the investment. Also investment in associates, subsidiaries and joint venture are carried at cost.

Note 4:- Capital Risk Management

The Company''s policy is to maintain an adequate capital base so as to maintain creditor and market confidence and to sustain future development. Capital includes issued capital, share premium and all other equity reserves attributable to equity holders. In order to strengthen the capital base, the company may use appropriate means to enhance or reduce capital, as the case may be.

Note: 5:

(a) Operating lease as Leaser

The company leases various offices, land and buildings under non-cancellable operating leases expiring within two to five years. The leases have varying terms, escalation clauses and renewal rights. On renewal, the terms of the leases are renegotiated.

(b) Operating lease as Leasee :-

The Company has taken on lease certain land and facilities under operating lease arrangements that expire over the years as shown in the table below. Rental expense incurred by the Company under operating lease agreements totalled approximately Rs.110.93 lakhs (31-Mar-2017 : Rs.105.18 lakhs)

Note 6 : First Time Adoption of IND AS :-

These are the company''s first financial statement prepared in accordance with Ind AS. For periods up to and including the year ended 31^st March, 2017, the Company prepared its financial statements in accordance with accounting standards notified under section 133 of the Companies Act 2013, read together with paragraph 7 of the Companies (Accounts) Rules, 2014 (Previous GAAP or Indian GAAP)

The accounting policies set out in Note 2 have been applied in preparing the financial statements for the year ended 31^st March, 2018. In preparing its opening Ind AS balance sheet, the Company has adjusted the amounts reported previously in financial statements prepared in accordance with Previous GAAP. An explanation of how the transition from previous GAAP to Ind AS has affected the companies financial performance and cash flows is set out in the following tables and notes. .

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

(A) Ind AS optional exemptions

(i) Business combinations :-

Ind AS 101 provides the option to apply Ind AS 103 prospectively from the transition date or from a specific date prior to the transition date. This provides relief from full retrospective application that would require restatement of all business combinations prior to the transition date.

The company elected to apply Ind AS 103 prospectively to business combinations occurring after its transition date. Business combinations occurring prior to the transition date have not been restated.

(ii) Deemed cost:-

Ind AS 101 permits a first-time adopter to elect to continue with the carrying value for all of its property, plant and equipment as recognised in the financial statements as at the date of transition to Ind AS, measured as per the previous GAAP and use that as its deemed cost as at the date of transition after making necessary adjustments for de-commissioning liabilities. This exemption can also be used for intangible assets covered by Ind AS 38 Intangible Assets

Accordingly, the Company has elected to measure all of its property, plant and equipment and intangible assets at the Previous GAAP carrying value.

(iii) Investments in subsidiaries and joint ventures :-

Ind AS 101 permits an entitiy to account for its investments in subsidiary, joint ventures and associates either at cost or in accordance with Ind AS 109. The company has elected to measure investments in subsidiares, joint ventures and associates at previous GAAP carrying amount as deemed cost on the date of transition.

(iv) Designation of previously recognised financial instruments:-

Ind AS 101 permits an entity to designate investment in instruments ( Other than equity investment in subisdiaries, joint ventures and associates) as at FVOCI based on facts and circumstances as at the date of transition to Ind AS .

The Company has availed this exemption to designate certain investment in equity instruments at FVOCI on the date of trasition.

(v) Transition provisions in an entity''s separate financial statements:-

An entity that, in accordance with Ind AS 101, was previously accounting in its separate financial statements for its interest in a joint operation as an investment at cost shall:

a. derecognise the investment and recognise the assets and the liabilities in respect of its interest in the joint operation.

b. provide a reconciliation between the investment derecognised, and the assets and liabilities recognised, together with any remaining difference adjusted in retained earnings, at the date of transition to Ind ASs.

The company has elected to account for its share in each of the assets and liabilities in joint operation ,in its separate financial statement on transition to Ind AS.

For reconciliation refer note "E" below.

(B) Ind AS mandatory Exceptions:

(i) Estimates:-

An entities estimate in accordance with Ind Ass at the date of transition to Ind AS shall be consistent with estimates made for the same in accordance with previous GAAP (after adjustments to reflect any difference in accounting policies), unless there is objective evidence that those estimates were in error.

Ind AS estimates as at 1 April 2016 are consistent with the estimates as at the same date made in conformity with previous GAAP. The Group made estimates for following items in accordance with Ind AS at the date of transition as these were not required under previous GAAP:

i)Investment in equity instruments carried at FVPL or FVOCI;

ii) Investment in debt instruments carried at FVPL; and

iii) Impairment of financial assets based on expected credit loss model

(ii) Derecognition of financial assets and financial liabilities :-

Ind AS 101 requires a first-time adopter to apply the de-recognition provisions of Ind AS 109 prospectively for transactions occurring on or after the date of transition to Ind AS. However, Ind AS 101 allows a first-time adopter to apply the de-recognition requirements in Ind AS -109 retrospectively from a date of the entity''s choosing, provided that the information needed to apply Ind AS 109 to financial assets and financial liabilities derecognised as a result of past transactions was obtained at the time of initially accounting for those transactions.

The company has elected to apply the de-recognition provisions of Ind AS 109 prospectively from the date of transition to Ind AS.

(iii) Classification and measurement of financial assets :-

Ind AS 101 requires an entity to assess classification and measurement of financial assets (investment in debt instruments) on the basis of the facts and circumstances that exist at the date of transition to Ind AS.

(C) Notes to the reconciliation of equity as at April 01, 2016 and March 31, 2017 and total comprehensive income for the year ended March 2017

Note 1 - Investment in joint operation

"The company use to measure its investment in all type of joint ventures at cost in the separate (i.e. standalone) financial statements as per previous GAAP. However Ind AS classify Joint control arrangement into Joint venture and Joint operation, and provide separate treatment to be followed for each. “As per Ind AS 111, the Company should recognise, in relation to its interest in a joint operation, (a) its assets, including its share of any assets held jointly; (b) its liabilities, including its share of any liabilities incurred jointly; (c) its revenue from the sale of its share of the output arising from the joint operation; (d) its share of the revenue from the sale of the output by the joint operation; and (e) its expenses, including its share of any expenses incurred jointly, in its separate financial statement itself. On transition date, the Company assessed its joint control over M/s. Pudumjee G-Corp Developers, and concluded that the joint arrangement is in the nature of Joint operation. On the basis of the above assessments the Company has accounted for its investment in Joint operation in its seperate financial statement. Refer "Note E" below for detail.

Note 2: Property, plant and equipment

Industrial land and buildings and one commercial property, total of Rs.1223.41 lakhs (31-Mar-2017: Rs.1282.34 lakhs) shown as fixed assets under Indian GAAP has been reclassified to Investment property under Ind AS. Further lands, of total carrying value Rs.31.33 lakhs as on transition date, taken on lease for 20-25 years that were earlier recognised as fixed asset in previous GAAP; have been recognised under other non-current assets as prepaid rent under Ind AS.

Note 3: Fair valuation of investments in equity instruments

"Under the previous GAAP, investments in equity instruments were classified as long-term investments or current investments based on the intended holding period and realisability. Long-term investments were carried at cost less provision for other than temporary decline in the value of such investments. Current investments were carried at lower of cost and fair value. Under Ind AS, these investments are required to be measured at fair value. The resulting fair value changes of these investments have been recognised in reserves under FVOCI -Equity investments, as at the date of transition and subsequently in the other comprehensive income for the year ended March 31, 2017. This increased the reserves by Rs.51.07 lakhs as at 31^st March, 2017 (1^st April, 2016: Rs.. 50.43 lakhs)."

Consequent to the above, the total equity as at 31^st March, 2017 increased by Rs.101.5 lakhs (1^st April 2016 - Rs.50.43 lakhs) and other comprehensive income for the year ended 31^st March, 2017 increased by Rs.51.07 lakhs.

Note 4: Investment in redemable preference shares

The Company has invested in redemable preference shares of its subsidiay that was recognised as investment in the financial statements under previous GAAP. However as per Ind AS redemable preference shares are in the nature of loan and hence the same has been recognised as loan and carried at amortised cost, in the Ind AS financial statements. The preference shares'' dividend was lower than market rates of interest. Accordingly an amount of Rs.163.85 lakhs being the difference between the nominal value of the loan and its fair value calculated based on market interest rate has been classified as equity investment of the Company in subsidiary. The differential interest is accrued as income over the period of the loan. Accordingly, for the year ended 31^st March, 2017 Rs.15.29 lakhs accrued interest income was included in the loan amount.

Note 5: Other financial assets - Security deposits

Interest free security deposits have been accounted for at amortised cost using market rates of interest. The difference between the nominal amount of deposits and the amortised cost as at the date of transition to Ind AS of Rs.7.37 lakhs (31^st March, 2017: Rs.5.39 lakhs) has been classified as prepaid expenses under other noncurrent assets. Interest income on deposits is recognised on effective interest rate basis disclosed under Other income and the prepaid expense is amortised on a straight line basis over the period of deposit disclosed under Other expenses - Rent.

Note 6: Other financial assets - Loan

The Company has given loans at below market rate of interest, that have been accounted for at amortised cost using market rates of interest. The difference between the nominal amount of loan and the amortised cost as at the date of transition to Ind AS of Rs.91.69 lakhs has been accounted in retained earnings. The differential interest is accrued as income over the period of the loan. Accordingly, for the year ended 31^st March, 2017 Rs.27.37 lakhs accrued interest income was included in the loan amount.

Note 7: Investments in mutual funds

Under Indian GAAP, investment in mutual funds were measured at cost plus any accrued dividend. Under Ind AS, these are measured at fair value.

Note 8: Borrowings

"The Company had, as per previous GAAP, charged transaction costs incurred in connection with borrowings to profit or loss in the year it acquired the borrowings. Under Ind AS, transaction costs are included in the initial recognition amount of financial liability and charged to profit or loss using the effective interest method.“This has resulted in increase in retained earning as on transition date, i.e. 1^st April, 2016 by Rs.20.33 lakhs, with corresponding reduction in borrowings. Consequently in the subsequent year ended 31^st March, 2017, finance cost, calculated using effective interest rate was higher by Rs.5.72 lakhs."

Note 9: Proposed dividend

Under the previous GAAP, dividends proposed by the board of directors after the balance sheet date but before the approval of the financial statements were considered as adjusting events. Accordingly, provision for proposed dividend was recognised as a liability. Under Ind AS, such dividends are recognised when the same is approved by the shareholders in the general meeting. Accordingly, the liability for proposed dividend (including dividend distribution tax thereon) of Rs.NIL as at 31^st March, 2017 (1^st April, 2016: Rs.97.77 lakhs) included under provisions has been reversed with corresponding adjustment to retained earnings. Consequently, the total equity increased by an equivalent amount.

Note 10: Remeasurements of post-employment benefit obligations

Under Ind AS, remeasurements i.e. actuarial gains and losses and the return on plan assets, excluding amounts included in the net interest expense on the net defined benefit liability are recognised in other comprehensive income instead of profit or loss. Under the previous GAAP, these remeasurements were forming part of the profit or loss for the year. As a result of this change, the profit for the year ended March 31, 2017 increased by Rs.6.47 lakhs. There is no impact on the total equity as at March 31, 2017.

Note 11: Other comprehensive income

Under Ind AS, all items of income and expense recognised in a period should be included in profit or loss for the period, unless a standard requires or permits otherwise. Items of income and expense that are not recognised in profit or loss but are shown in the statement of profit and loss as other comprehensive income include remeasurements of defined benefit plans and taxes thereon. The concept of other comprehensive income did not exist under previous GAAP.

Note 12: Retained earnings

Retained earnings as at 1^st April 2016 has been adjusted consequent to the above Ind AS transition adjustments.

Note 13: Statement of cash flows

As explained in note 1, the company has recognised, in relation to its interest in Joint Operation ,assets and liabilities ,revenue and expenses and related cashflows, accordingly the cashflow from operating, Investing and financing activities has increased/(decreased) by Rs. (76.24), 4.01, 213.60 amount respectively.

Note 7: Real estate transaction:

Revenue from real estate projects including integrated townships is recognised on the ‘Percentage of Completion Method'' of accounting. Revenue is recognized, in relation to the sold areas only, on the basis of percentage of actual cost incurred thereon including land as against the total estimated cost of the project under execution subject to construction costs being 25% or more of the total estimated cost. The estimates of saleable area and costs are revised periodically by the management. The effect of such changes to estimates is recognised in the period such changes are determined.

In accordance with Guidance Note issued by the Institute of Chartered Accountants of India (ICAI), on ‘Accounting for Real Estate Transactions (for entities to whom Ind AS is applicable), revenue is recognised on percentage of completion method if (a) actual construction and development cost (excluding land cost) incurred is 25% or more of the estimated cost, (b) At least 25% of the saleable project area is secured by contracts or agreements with buyers and (c)At least 10% of the total consideration as per sales agreement or any other legally enforceable document are realised as at the reporting date.

However, if and when the total project cost is estimated to exceed the total revenue from the project, the loss is recognized in the same financial year.

The estimates of the projected revenues, projected profits, projected costs, cost to completion and the foreseeable loss are reviewed periodically by the management and any effect of changes in estimates is recognized in the period in which such changes are determined.

Note 8: Reclassification

Previous year figure''s have been reclassified to confirm to this year''s classification.

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Mar 31, 2016

(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 31^st March ,2016.

1. A Dividend of Rs, 0.20 (Last year Rs, 0.30) per equity share of Rs, 2/- each has been proposed for the current year amounting to Rs, 82 lacs (Last year Rs, 123 lacs) excluding Rs, 15.77 lacs (Last year Rs, 25.04 lacs) of Dividend Distribution tax.

2. 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 Hygeine Products Limited.

e) Pudumjee Holding Limited.

f) Pudumjee Paper Products Limited.

C) Key Management personnel

Shri. Arunkumar M. Jatia Executive Chairman Shri. V. P. Leekha Managing Director Shri. S.K. Bansal Wholetime Director & C.F.O Shri. R.M. Kulkarni Company Secretary

i) The Discontinued Segment relates to paper manufacturing business demerged in to Pudumjee Paper Products Ltd, persuant to the Scheme of Arrangement

ii) The Continuing 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 through Wind Power Turbines.

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

iii) The figures in brackets relates to earlier year.

3. 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 :

All such lease receipts/payments for the year are recognized in Profit & Loss Account as miscellaneous income/Rent Expense.

(b) The Firm is engaged in construction and sale of residential flats. It has followed completed building method till 31^st March, 2015. However in view of newly introduced tax accounting standards the firm has instead adopted percentage completes method. Consequently the Company''s share of profit is higher in the year by Rs, 652.20 lacs as compared to previous year.

(c) The company''s share of interest in the joint venture Firm:

4. The following are the disclosures required under revised Accounting Standards (AS) 15 in respect

of Employee Benefits :

a) An amount of Rs, 34.10 lacs (Last year Rs, 166.53 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.

c) Expenses recognized during the year and reconciliation of the Assets & Liabilities recognized in Balance Sheet as at 31.03.2016 :

5. The items and figures for the previous year have been recast

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Mar 31, 2015

NOTE '1A' - DISCONTINUING OPERATIONS

The Company has undertaken restructuring initiative for demerger of the Paper Manufacturing Business of the Company. The Board of Directors of the Company at its Meeting held on 17th January, 2015 has considered and approved a Scheme of Arrangement( Demerger) between the company, Pudumjee Industries Ltd., Pudumjee Hygiene Products Ltd. and Pudumjee Paper Products Ltd. As per the Scheme the Paper Manufacturing Business of the Company would be demerged and transferred to Pudumjee Paper Products Limited.

The Paper Manufacturing is the main business segment of the company. The Scheme is subject to requisite approvals, including sanction of the Hon'ble High Court at Mumbai which is pending. Accordingly aforesaid Paper business has been considered as discontinuing operations.

1.01 Sale of wind power & expenditure of Fuel power & water include Rs.79.68 lacs (last year Rs. 522.03 lacs) captively consumed for manufacturing operations to make the presentation under Accounting Standard 24 Discontinuing Operations meaningful.

1.02 Salary, Wages, gratuity and bonus (Note '22') does not include a sum of Rs. 109.15 lacs (Last year Rs. 83.99 lacs) transferred to other accounts.

1.03 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 temporarily deferred, the borrowing and other recurring costs (net) incurred for the year aggregating to Rs. 259.43 lacs (Last year Rs.310.79 lacs)have been treated as revenue expenditure and charged to the Profit & Loss account for the year ended 31-03-2015 under the respective heads.

1.04 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. 106.29 lacs during the year and Rs. 164.63 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 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.

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

1.05 Corporate Social Responsibility expenses debited to the Profit & Loss account Rs. 10.20 lacs (Last year Nil) represents amount actually spent during the year on purpose other than construction / acquisition of Assets. The unspent amount is provided by debit to Surplus account in Profit & Loss account under Reserves & Surplus - Rs. 29.80 lacs.

1.06 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.

AS AT AS AT 31.03.2015 31.03.2014 Rs.in Lacs Rs. in Lacs

1.07 a) Contingent Liabilities not provided for in respect of :

i) Bank Guarantees and Letters of Credit in favour of suppliers of raw materials, spares etc.* 2,104.77 3,012.52

ii) Guarantee for other Companies* 1,297.68 2,488.36

iii) Claims against the Company not acknowledged as debts for excise duty, property tax and commercial claims etc. ** 586.99 586.61

iv) Penalty under Income Tax Act no longer payable in view of appellate order in company's favour * - 351.91

* Will not affect the future Profitability.

** May affect the future profitability to the extent indicated, if such liabilities crystallise.

b) Commitments not provided for in respect of : i) Estimate of contracts remaining to be executed on capital account 207.57 46.33

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

1.09 Depreciation

(a) The Company has adopted the estimates of the useful lives of the Fixed Assets wef. 1st April, 2014 as prescribed under schedule II of the companies Act. 2013, as a result the charge of Depreciation for the year is lower by Rs. 304.55 lacs.

(b) Further an amount of Rs. 29.05 lacs has been added to the depreciation for the year inrespect of the residual value of assets,whose remaining useful lives has become Nil.

(c) The Company has now adopted straight line method for all the assets instead of written down value method for certain assets. consequently an amount of Rs. 50.65 Lacs has been deducted from depreciation for the year.

(d) Consequent to these changes the depreciation for the year ended 31st March 2015 is lower by Rs. 326.15 Lacs and profit before and after tax is correspondingly higher by the same amount.

(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, 2015.

1.10 A Dividend of Rs. 0.30 (Last year Rs. 0.30) per equity share of Rs. 2/- each has been proposed for the current year amounting to Rs. 123 lacs (Last year Rs.123 lacs ) excluding Rs. 25.04 lacs (Last year Rs.20.90 lacs) of dividend Distribution tax.

2.1 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 Hygiene Products Limited.

e) Pudumjee Holdings Limited.

f) Pudumjee Paper Products Limited.

C) Key Management Personnel Shri. Arunkumar M. Jatia

Executive Chairman Shri. V.P. Leekha Managing Director Shri. S.K. Bansal Wholetime Director & C.F.O.

Dr. Ashok Kumar

Executive Director

Shri R.M. Kulkarni

Company Secretary

2.2 SEGMENT REPORTING (Accounting standard 17)

i) The Discontinuing Segment relates to paper manufacturing business

ii) The Continuing 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) Investment / Other segment relates to activities not covered by aforesaid segments.

iii) The figures in brackets relates to earlier year.

2.3 The details of the Joint Venture firm 'Pudumjee-G : Corp Developers' in which the company is partner are as under:

(b) The Firm is engaged in construction and sale of residential flats. It follows completed construction method for the accounting purpose and in view of its fifth building comprising of 94 flats having been completed during this financial year,the Profit & Loss Account of the Company includes its share of profit from the firm as Rs. 1353.21 lacs (Last year Rs. 1142.80 lacs)

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

a) An amount of Rs.166.53 lacs (Last year Rs.143.91 lacs) has been recognized as an expense for defined contribution plans by way of Company's contribution to Provident Funds & Super annuation 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.In addition,during the current year,as per special resoulation passed by shareholders at their meeting held on 13th September, 2014, a pension / Family pension liability on the basis of actuarial valuation has been provided by debit to P& L Account at Rs. 76.65 lacs in respect of one director of the company.The pension payable will crystalise on his leaving service & family pension after his death to his spouse.

The actuary has assumed rate of interest at 8% p.a.in the valuation of pension / family pension liability & the LIC annuitants mortality (96-98) ultimate table.

Expenses aggregating Rs. 212.55 lacs (Last year Rs.128.58 lacs) covered under items (ii),(iii),(iv),(vi) and (x) above have been debited to the Profit & Loss Account under Salary & Wages, Bonus etc.

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

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Mar 31, 2014

1.0 a) Contingent Liabilities not provided for in respect of :

AS AT AS AT 31.03.2014 31.03.2013 Rs.in Lacs Rs.in Lacs

i) Bank Guarantees and Letters of Credit in favour of suppliers of raw materials, spares etc.* 3,012.52 2,111.08

ii) Guarantee for other Companies * 2,488.36 1,435.00

iii) Claims against the Company not acknowledged as debts for excise duty, property tax and commercial claims etc. ** 586.61 619.98

iv) Penalty under Income Tax Act no longer payable in view of appellate order in company''s favour * 351.91 -

* Will not affect the future Profitability.

** May affect the future profitability to the extent indicated, if such liabilities crystallise.

1.1 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 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. 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 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.

1.2 A Dividend of Rs. 0.30 (Last year Rs. 0.30) per equity share of Rs. 2/- each has been proposed for the current year amounting to Rs. 123 lacs (Last year Rs. 123 lacs) excluding Rs. 20.90 lacs (Last year Rs. 20.90 lacs) of dividend Distribution tax.

1.3 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 Hygiene Products Limited.

e) Pudumjee Holdings Limited.

C) Key Management Personnel

Shri. Arunkumar M.Jatia Chairman

Shri. V.P.Leekha Managing Director

Shri. S.K.Bansal Wholetime Director

1.4 The details of the Joint Venture firm ''Pudumjee-G : Corp Developers'' in which the company is partner are as under :

(b) The Firm is engaged in construction and sale of residential flats. It follows completed construction methood for the accounting purpose and in view of its fourth building comprising of 94 flats having been completed during this financial year, the Profit & Loss Account of the Company includes its share of profit from the firm as Rs. 1142.80 lacs (Last year Rs. 1660.06 lacs for 2 buildings)

(c) The company''s share of interest in the joint venture Firm:( Rs.. -lacs)

1. 5 The following are the disclosures required under revised Accounting Standards (AS) 15 in respect of Employee Benefits :

a) An amount of Rs. 143.91 lacs (Last year Rs. 139.23 lacs) has been recognized as an expenses for defined contribution plans by way of Company''s contribution to Provident Funds & Super annuation 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.

c) Expenses recognized during the year and reconciliation of the Assets & Liabilities recognized in Balance Sheet as at 31.03.2014 :

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

---

Mar 31, 2013

1.01 Salary, Wages, gratuity and bonus (Schedule ''K'' ) does not include a sum of Rs.88.62 lacs (Last year Rs.109.14 lacs) transferred to other accounts.

1.02 a) The company has acquired leasehold land,building and board manufacturing machine at Mahad Dist.Raigad last year, where a Paper machine is also being installed. 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) Borrowing cost comprising interest etc. of Rs. 418.40 lacs (Last year Rs. 155.24 Lacs) and the expenses of Rs.14.85 lacs (Last year Rs. 62.73 lacs) relating to the aforesaid projects have been capitalized.

1.03 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.

1.04 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 determined and as such this will be included when finally decided since the relevant docu- mentation is yet to be finalised and executed.

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.

1.06 A Dividend of Re.0.30 (Last year Re.0.30) per equity share of Rs.2/- each has been proposed for the current year amounting to Rs. 123 lacs (Last year 123 lacs ) excluding Rs. 20.90 lacs (Last year Rs 19.95 lacs ) of dividend Distribution tax.

1.07 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) M/s.Prime Developers.

c) Pudumjee Industries Limited.

d) Pudumjee Plant Laboratories Limited.

e) Pudumjee Hygiene Products Limited.

f) Pudumjee Holdings Limited.

C) Key Management personnel Shri.V.P.Leekha

Chief Executive Officer

Shri.S.K.Bansal Wholetime Director

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

a) An amount of Rs.139.23 lacs (Last year Rs.127.11 lacs) has been recognized as an expenses for defined contribution plans by way of Company''s contribution to Provident Funds & Super annuation 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.

c) Expenses recognized during the year and reconciliation of the Assets & Liabilities recognized in Balance Sheet as at 31.03.2013 :

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

---

Mar 31, 2012

Notes:

(a) Excluding Rs. 138.89 lacs (Last year Rs. Nil/-) shown under "Current maturities of Long Term Debt" under Note No.8. Repayble in 18 equal Quarterly installments beginning with 04.02.2013.

(b) Repayble in 18 equal Quarterly installments beginning with 14.08.2013.

(c) Excluding Rs. 180.00 lacs (Last year Rs. Nil/-) shown under "Current maturities of Long Term Debt"under Note No.8. Repayble in 20 equal Quarterly installments beginning with 21.06.2012.

(d) Excluding Rs. 93.68 lacs (Last year Rs. 187.53) shown under "Current maturities of Long Term Debt"under Note No.8. Repayble in 15 equal Quarterly installments beginning with 24.12.2008.

(e) Excluding Rs. Nil (Last year Rs. 240.00 lacs) shown under "Current maturities of Long Term Debt" under Note No.8. Repayble in 10 half yearly installments beginning with 01.10.2007.

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

* Security :

First charge on all immoveable and moveable properties of the Company at its Pune Plant, both present and future subject, however, to the prior charges created and / or to be created by the Company on its (i) immoveables and moveable properties specifically secured and (ii) other movables and book debts in favour of its bankers for securing borrowings for working capital facilities. All these loans shall rank pari passu with the existing and future first charges created in favour of Financial Institutions and Banks.

Notes:

(a) Excluding (i) Rs. 62.20 lacs (Last year Rs. 78.45 lacs) being deposits for 1 year shown under "Short Term Borrowings" under Note No 6, and (ii) Rs. 1771.74 lacs (Last year Rs. 706.40 lacs) shown under "Current maturities of Long Term Fixed Deposits"under Note No.8.

(b) Excluding Rs. 6.62 lacs (Last year Rs. Nil) 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.

1.1 Salary, Wages, gratuity and bonus (Schedule 'K') does not include a sum of Rs.109.14 lacs (Last year Rs. 90.41 lacs) transferred to other accounts.

1.2 a) The company has acquired leasehold land,building and board manufacturing machine at Mahad Dist.Raigad, where a Paper machine is also being installed . The leasehold land,colony and buildings are shown under Tengible Fixed Assets schedule (Note No.10) and is appropriately amortized and depreci- ated for the year and Factory Building,Machinery and all other assets together with related expenditure have been shown under Capital work-in-progress.

b) The wind power plant of a capacity of 2.1 MW,included under capital work- in-progress is under installation and is expected to commence operation in the next financial year.

c) Borrowing cost comprising interest etc. of Rs.155.24 lacs (Last year Rs.1.13 Lacs) and the expenses of Rs. 62.73 lacs (Last year Rs.194.87 lacs) relating to the aforesaid projects have been capitalized.

1.3 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.

1.4 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.

1.5 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.

1.6 a) Contingent Liabilities not provided for in respect of:

AS AT AS AT 31.03.2012 31.03.2011 Rs.in Lacs Rs.in Lacs

i) Bank Guarantees and Letters of Credit in favour of suppliers of raw materials, spares etc.* 1,976.85 2,192.20

ii) Guarantee for other Companies * 736.67 364.56

iii) Claims against the Company not acknowledged as debts for excise duty, property tax and commercial claims etc. ** 725.77 642.30

* Will not affect the future Profitability.

** May affect the future profitability to the extent indicated, if such liabilities crystallise.

b) Commitments not provided for in respect of:

i) Estimate of contracts remaining to be executed on capital account 768.86 2724.08



1.7 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) M/s.Prime Developers.

c) Pudumjee Industries Limited.

d) Pudumjee Plant Laboratories Limited.

e) Pudumjee Hygine Products Limited.

f) Pudumjee Holdings Limited.

C) Key Management personnel

Shri.M.P.Jatia (Expired on 25-05-2012)

Chairman & Managing Director

Shri.V.P.Leekha

Chief Executive Officer

Shri.S.K.Bansal

Wholetime Director

I) The Paper segment relates to manufacture and marketing of Paper, processing activity.

ii) The Real Estate Activity relates to profit from firm, engaged in Construction Activity.

iii) Power Generation Activity relates ro Generation of Power from D.G.Set and Wind Power Turbine.

iv) The figures in brackets relate to earlier year.

(b) The Firm is engaged in construction and sale of residential flats. It follows completed construction method for the accounting purpose and in view of its first building comprising of 94 flats having been completed during this financial year,the Profit & Loss Account of the Company includes its share of profit from the firm as Rs. 690.60 lacs (Last year Nil )

1.8 The following are the disclosures required under revised Accounting Standards (AS) 15 in respect of Em- ployee Benefits :

a) An amount of Rs. 127.11 lacs (Last year Rs. 115.07 lacs) has been recognized as an expenses for defined contribution plans by way of Company's contribution to Provident Funds & Super annuation 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.

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

---

Mar 31, 2011

1 Contingent Liabilities not provided for in respect of: AS AT AS AT 31.03.2011 31.03.2010 (Rs. in lacs) (Rs. in lacs)

i) Bank Guarantees and Letters of Credit in favour of suppliers of raw materials, spares etc.* 2,192.20 759.24

ii) Guarantee for other Companies * 364.56 161.65

iii) Claims against the Company not acknowledged as debts for excise duty, property tax and commercial claims etc. ** 642.30 639.93

* Will not affect the future Profitability.

** May affect the future profitability to the extent indicated, if such liabilities crystallise.

2 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 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.

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 8 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, 2011.

3 The following amounts which had become due and payable to the credit of The Investor Education and Protection Fund have been so paid and there are no amounts remaining outstanding as at 31st March, 2011 which are to be credited to the fund.

4 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) M/s. Prime Developers.

c) Pudumjee Industries Limited.

d) Pudumjee Plant Laboratories Limited.

e) Pudumjee Hygiene Products Limited.

C) Key Management personnel

Shri. M. P. Jatia

Chairman & Managing Director

Shri. V. P. Leekha Chief Executive Officer

Shri. S. K. Bansal Wholetime Director

5 Company operates only in one reportable segment i.e. Pulp & Paper.

(b) The firm will recognise profit for the construction of residential complex following completion method in the subsequent year(s), when it will be dealt with by the company in its accounts.

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

a) An amount of Rs.115.07 lacs (Last year Rs.100.31 lacs) has been recognized as an expenses for defined contribution plans by way of Company's contribution to Provident Funds & Super annuation 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.

7 The deposits with Banks include Rs.9.00 lacs (Last year Rs.58.85 lacs) being margin money kept with Bank.

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

---

Mar 31, 2010

1 Contingent Liabilities not provided for in respect of:

AS AT AS AT

31.03.2010 31.03.2009

(Rs. in lacs) (Rs. in lacs)

i) Bank Guarantees and Letters of Credit in favour of suppliers of raw materials, spares etc.* 759.24 1,669.18

ii) Guarantee for other Companies * 161.65 35.00

iii) Claims against the Company not acknowledged as debts for excise duty, property tax and commercial claims etc. ** 639.93 630.16

* Will not affect the future Profitability.

** May affect the future profitability to the extent indicated, if such liabilities crystallise.

2. 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 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. However, No depreciation is provided on capital expenditure incurred in respect of assets owned or that may be owned by the Government authorities.

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 in transactions are dealt with in the Profit & Loss Account.

h) Miscellaneous Expenditure-Compensation paid under Voluntary Retirement Scheme has been deferred, to be written off over a period of five years.

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 companys 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, 2010.

3. The following amounts which had become due and payable to the credit of The Investor Education and Protection Fund have been so paid and there are no amounts remaining outstanding as at 31st March, 2010 which are to be credited to the fund.

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

a) An amount of Rs.100.31 lacs (Last year Rs.81.55 lacs) has been recognized as an expenses for defined contribution plans by way of Companys contribution to Provident Funds & Super annuation Fund.

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

c) Expenses recognized during the year and reconciliation of the Assets & Liabilities recognized in Balance Sheet as at 31.03.2010 :

5. The deposit with Banks include Rs.58.85 lacs (Last year Rs.7.21 lacs) being margin money kept with Bank.

6. The items and figures for the previous year have been recast and regrouped wherever necessary to conform to this years presentation.