Notes to Accounts of Duroply Industries Ltd.

Mar 31, 2018

Note No. 1

1. Company Overview

Sarda Plywood Industries Limited (‘the company’) is a public limited company incorporated and domiciled in India in 1957 under the Companies Act, 1956. Its shares are listed on Bombay Stock Exchange. The Company is primarily engaged in manufacturing and sale of Plywood, Decorative Veneers, Block boards, Doors, Tea etc. The registered office of the Company is at 9, Parsee Church Street, Kolkata - 700 001.

(a) The Company has only one class of equity shares having a par value of Rs.10 per share. Each holder of equity shares is entitled to one vote per share. The holders of equity shares are entitled to receive dividends as declared from time to time. In the event of liquidation of the Company, the holders of equity shares will be entitled to receive remaining assets of the Company, after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders.

(b) There are NIL (Previous year NIL) shares reserved for issue under option and contracts / commitment for the sale of shares / disinvestment.

(c) During the period of five years immediately preceding the reporting date:

i. No shares were issued for consideration other than cash

ii. No bonus shares were issued

iii. No shares were bought back

(e) There are NIL (Previous year NIL) securities convertible into Equity/ Preference Shares.

(f) There are NIL (Previous year NIL) calls unpaid including calls unpaid by Directors and Officers as on the balance sheet date.

(g) No shares were forfeited during the year or during the previous year. 5625 equity shares of Rs.10/- each on which Rs.5/- each had been paid up, were forfeited in the year 1995-1996 and 1996-1997

Nature of securities :

Working capital loan and Buyers Credit are secured by hypothecation of present & future stocks and book debts and second charge on the Company’s immovable properties situated at Jeypore (Assam) by deposit of title deeds and also by second charge on all plant & machinery and other fixed assets of the Company, both present & future, and are additionally secured by personal guarantees of the Managing Director.

* Buyers Credit is payable within 3 to 6 Months

Note No. : 2

Other disclosures

1. Transition to Ind AS

These are the company’s first financial statements prepared in accordance with Ind AS.

The accounting policies set out have been applied in preparing the financial statements for the year ended 31^st March, 2018, the comparative information presented in these financial statements for the year ended 31^st March, 2017 and in the preparation of an opening Ind AS balance sheet as at 1^st April, 2016 (the company’s date of transition). In preparing its opening Ind AS balance sheet, the company has adjusted the amounts reported previously in financial statements prepared in accordance with the accountig standards notified under Companies (Accounting Standards) Rules, 2006 (amended) and other relevant provisions of the Act. An explanation of how the transition from previous GAAP to Ind AS has affected the company’s financial position, financial performance and cash flows is set out in the following tables and notes.

A. Exemptions and exceptions availed

Set out below are the applicable Ind AS 101 optional exemptions and mandatory exceptions applied in the transition from previous GAAP to Ind AS.

A.1 Ind AS optional exemptions

A.1.1 Fair Valuation of property, plant and equipment and intangible assets

The Company have considered fair value for property, viz land situated in india, in accordance with stipulatons of Ind AS 101 with the resultant impact being accounted for in the retained earnings. For rest of the property, plant and equipment company had elected to continue with the carrying value of all of its plant and equipment and intangible assets as recognised as of 1^st April, 2016 (transition date) measured as per the previous GAAP and use that carrying value as its deemed cost as of the transition date.

A.1.2 Fair value of investments in associates

The Company have considered fair value for investments in associated in accordance with stipulatons of Ind AS 101 with the resultant impact being accounted for in the retained earnings.

A.2 Ind AS mandatory exceptions

A.2.1 Estimates

As per para 14 of Ind AS 101, an entity’s estimates. In accordance with lnd AS at the date of transition to lnd AS at the end of the comparative period presented in the entity’s first lnd AS financial statements, as the case may be, should be consistent with estimates made for the same date ln accordance with the previous GAAP unless there is objective evidence that those estimates were in error. However, the estimates should be adjusted to reflect any differences in accountings policies. As per para 16 of the standard, where application of lnd AS requires an entity to make certain estimates that were not required under previous GAAP, those estimates should be made to reflect conditions that existed at the date of transition or at the end of the comparative Period. The Company’s estimates under lnd AS are consistent with the above requirement. Key estimates considered in preparation of the financial statement that were not required under the previous GAAP are listed below:

- Fair Valuation of financial instruments carried at FVTPL and/ or FVOCI.

- Impairment of financial assets based on the ‘expected credit loss model’

- Determination of the discounted value for financial instruments carried at amortized cost.

A.2.2 Classification and measurement of financial assets

Para 88 - 88C of lnd AS 101 requires an entity to assess classification of financial assets on the basis of facts and circumstances existing as on the date of transition. Further, the standard permits measurement of financial assets accounted at amortized cost based on facts and circumstances existing at the date of transition if retrospective application is impracticable, Accordingly, the Company has determined the classification of financial assets based on facts and circumstances that exist on the date of transition. Measurement of the financial assets accounted at amortized cost has been done retrospectively.

A.2.3 Impairment of financial assets

The company has applied impairment requirements of Ind AS 109 restrospectively; however, as permitted by Ind AS 101, it has used reasonable and supportable information that is available without undue cost or effort to determine the credit risk at the date that financial instruments were initially recognized in order to compare it with the credit risk at the transition date.

B. Reconciliations between previous GAAP and Ind AS

The following reconciliations provide the explanation and qualification of the differences arising from the transition from Previous GAAP to Ind AS in accordance with Ind AS 101 “First Time Adoption of Indian Accounting Standards”.

(i) Reconciliation of total equity as at 1^st April 2016 and 31^st March, 2017.

(ii) Reconciliation of total comprehensive income for the year ended 31^st March, 2017.

Previous GAAP figures have been reclassified/regrouped wherever necessary to confirm with the financial statements prepared under Ind AS.

Explanations to the material adjustments made in the process of IND AS transition from previous GAAP

a. Borrowings

Under Indian GAAP, transaction costs incurred in connection with borrowings are amortised upfront and charged to profit or loss for the period. Under Ind AS, transaction cost are included in initial recognition amount of financial liability and charged to profit or loss using the effective interest method.

b. Property, plant and equipment

The Company has elected to considered fair value for property, viz land situated in india, in accordance with stipulatons of Ind AS 101 with the resultant impact being accounted for in the reserves. For rest of the property, plant and equipment company had elected to continue with the carrying value of all of its plant and equipment and intangible assets as recognised as of 1^st April, 2016 (transition date) measured as per the previous GAAP and use that carrying value as its deemed cost as of the transition date.

c. Fair value of investments

Under the lndian GAAP, investments in equity instruments and mutual funds 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 lnd AS, these investments are required to be measured at fair value. The resulting fair value changes of these investments (other than equity instruments designated as at FVOCI) have been recognised in retained earnings as at the date of transition and subsequently in the profit or loss for the year ended 31^st March, 2017 and 31^st March, 2018. Fair value changes with respect to investments in quoted equity instruments, unquoted equity instruments and mutual funds designated as at FVTPL have been recognised in retained earning at the date of transition and subsequently in the profit and loss account for the year ended 31^st March, 2017 and 31^st March, 2018.

d. Defined benefit liabilities

Both under Indian GAAP and Ind AS, the Company recognised costs related to its post-employment defined benefit plan on an actuarial basis. The entire cost, including actuarial gains and losses, are charged to profit or loss. Under Ind AS, remeasurements [comprising of actuarial gains and losses, the effect of the asset ceiling, excluding amounts included in net interest on the net defined benefit liability and the return on plan assets excluding amounts included in net interest on the net defined benefit liability] are recognised immediately in the balance sheet with a corresponding debit or credit to retained earnings through OCI.

e. Other comprehensive income

Under IND AS, all items of income and expense recognized in the 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 recognized in profit or loss but are shown in the statement of profit and loss and “other comprehensive income” includes remeasurements of defined benefit plans. The concept of other comprehensive income did not exist under previous GAAP.

f. Expected credit loss model

lnd-AS 109 requires to recognize loss allowances on trade receivable and other financial assets of the Company, at an amount equal to the lifetime expected credit loss or the 12 month expected credit loss based on the increase in the credit risk.

g. Re-Classifications

The Company has done the following reclassifications as per the requirements oflnd-AS:

(i) Assets / liabilities which do not meet the definition of financial asset / financial liability have been reclassified to other asset / liability.

(ii) Remeasurement gain/loss on long term employee defined benefit plans are re-classified from statement of profit and loss to OCl.

(iii) The Company has re-classified fixed deposits with banks under lien from cash and cash equivalents to other bank balances.

(iv) Excise duty on sales was earlier netted off with sales, has now been presented separately.

h. Derivative Contract

Under IND AS mark to market gain/loss on restatement of forward contract as at the reporting date has been recognized in the statement of profit & loss.

3. The Company has not received any memorandum (as required to be filed by the suppliers with the notified authority under the Micro, Small and Medium Enterprises Development Act, 2006) claiming their status as on 31^st March, 2018 as micro or small or medium enterprises. Consequently the amount due to micro and small enterprises as per section 22 of the abovesaid Act is Rs. Nil (Previous year Rs. Nil).

4. Leases

Finance lease commitments - Company as lessee

The Company has also entered into finance leases on Vehicle and Equipment purchase with lease terms of 3 years.The Company has paid Rs. 10.50 Lakhs (31^st March, 2017 Rs. 14.52 Lakhs) during the year towards minimum lease payment.

Operating lease commitments - Company as lessee

The Company has entered into operating lease agreement for office space and godowns. The total charge to the Statement of Profit and Loss for the year on account of operating lease is Rs. 175.81 Lakhs (31^st March, 2017 Rs. 144.85 Lakhs)

The minimum rentals payable under operating leases for non cancellable agreements are as follows:

5. For the purpose of the Company’s capital management, capital includes issued equity capital, share premium and all other equity reserves attributable to the equity holders of the Company. The primary objective of the Company’s capital management is to maximise the shareholder value.

The Company manages its capital structure and makes adjustments in light of changes in economic conditions and the requirements of the financial covenants. To maintain or adjust the capital structure, the Company may adjust the dividend payment to shareholders, return capital to shareholders or issue new shares. The Group monitors capital using a gearing ratio, which is net debt divided by total capital plus net debt. The Company net debt includes interest bearing loans and borrowings, trade payables, less cash and cash equivalents.

In order to achieve this overall objective, the Group’s capital management, amongst other things, aims to ensure that it meets financial covenants attached to the interest-bearing loans and borrowings that define capital structure requirements. Breaches in meeting the financial covenants would permit the bank to immediately call loans and borrowings. There have been no breaches in the financial covenants of any interest-bearing loans and borrowing in the current period. No changes were made in the objectives, policies or processes for managing capital during the years ended 31^st March, 2018 and 31^st March, 2017.

6. Financial risk management objectives and policies

The Company’s principal financial liabilities comprise loans and borrowings, trade and other payables. The main purpose of these financial liabilities is to finance the Company’s operations and to support its operations. The Company’s financial assets include Investments, trade and other receivables, and cash & cash equivalents that derive directly from its operations.

The Company is exposed to market risk, credit risk and liquidity risk. The company’s senior management oversees the management of these risks. The company’s senior management is supported by a financial risk committee that advises on financial risks and the appropriate financial risk governance framework for the Company. This financial risk committee provides assurance to the Company’s senior management that the Company’s financial risk activities are governed by appropriate policies and procedure and that financial risks are identified, measured and managed in accordance with the Company’s policies and risk objectives. The Board of Directors reviews and agrees policies for managing each risk, which are summarised as below:

(A) Market risk

Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk comprises three types of risk: interest rate risk, currency risk and other price risks. Financial instruments affected by market risk include Trade payables and borrowings in foreign currencies.

a) Interest rate risk

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The Company’s exposure to the risk of changes in market interest rates relates primarily to the Company’s long term debt obligations with floating interest rates. The Company is carryg its borrowings primarily at variable rate. The Company expects the variable rate to decline, accordingly the Company is currently carrying its loans at variable and Fixed interest rates.

b) Foreign currency risks

Foreign currency risk is the risk that the fair value of future cash flows of an exposure will fluctuate because of changes in foreign exchange rates. The Company’s exposure in foreign currency is in purchase of raw material through letter of credits. The Company is not resricting its exposure of risk in change in exchange rates. The Company expects the Indian Rupee to strengthen and accordingly the Company is carrying the risk of change in exchange rates.

Foreign currency sensitivity

The following table demonstrate the sensitivity to a reasonably possible change in USD/EURO exchange rates, with all other variables held constant. The impact on the Company’s profit before tax is due to changes in the fair value of monetary assets and liabilities. The Company’s exposure to foreign currency changes for all other currencies is not material.

B) Credit risk

Credit risk is the risk that counterparty will not meet its obligations under a financial instrument or customer contract, leading to a financial loss. The Company is exposed to credit risk from its operating activities (primarily trade receivables).

(i) Trade receivables

Customer credit risk is managed by each business location subject to the Company’s established policy, procedures and control relating to customer credit risk management. Credit quality of a customer is assessed and individual credit limits are defined in accordance with the assessment both in terms of number of days and amount.

An impairment analysis is performed at each reporting date on an individual basis for major clients. In addtion, a large number of minor receivables are grouped into homogenous groups and assessed for impairment collectively. The maximum exposure to credit risk at the reporting date is the carrying value of each class of financial assets disclosed in Note 9. The Company does not hold collateral as security.

(ii) Financial instruments and cash deposits

Credit risk from balances with banks and financial institutions is managed by the Company’s treasury department in accordance with the Company’s policy. Investment of surplus funds are made only with approved counterparties and within credit limits assigned to each counterparty. The Company’s maximum exposure to credit risk for the components of the balance sheet at 31^st March, 2018 and 31^st March, 2017 is the carrying amount as illustrated in Note 34(7).

(C) Liquidity risk

The Company monitors its risk of a shortage of funds by estimating the future cash flows. The Company’s objective is to maintain a balance between continuity of funding and flexibility through the use of bank overdrafts, cash credit facilities and bank loans. The Company assessed the concentration of risk with respect to refinancing its debt and concluded it to be low. The Company has access to a sufficient variety of sources of funding and debt maturity within 12 months can be rolled over with existing lenders. The Company had access to the following undrawn borrowing facilities at the end of the reporting periods -

7. Disclosure pursuant to IND AS -19 on “Employee Benefits”

Defined Contribution Plan:

Employee benefits in the form of Provident Fund, Pension Scheme and Superannuation Fund are considered as defined contribution plan and the contributions are made in accordance with the relevant statute and are recognized as an expense when employees have rendered service entitling them to the contributions. The contribution to defined contribution plan, recognized as expense for the year are as under:

Defined Benefit Plan:

Post employment and other long-term employee benefits in the form of gratuity, sick leave and earned leave encashment are considered as defined benefit obligation. The present value of obligation is determined based on actuarial valuation using projected unit credit method as at the Balance Sheet date. The amount of defined benefits recognized in the balance sheet represent the present value of the obligation as adjusted for unrecognized past service cost, and as reduced by the fair value of plan assets.

Any asset resulting from this calculation is limited to the discounted value of any economic benefits available in the form of refunds from the plan or reductions in future contributions to the plan. The amounts recognised in the Profit & Loss Statement and Balance sheet and the movements in the net defined benefit obligation over the year are as follows:

These assumptions were developed by management with the assistance of independent actuarial appraisers. Discount factors are determined close to each year-end by reference to government bonds of relevant economic markets and that have terms to maturity approximating to the terms of the related obligation. Other assumptions are based on management’s historical experience.

The sensitivity analysis above have been determined based on a method that extrapolates the impact on defined benefit obligation as a result of reasonable changes in key assumptions occuring at the reporting period.

8. Segment information as per IND AS - 108 on ‘Segment Reporting’ :

The Company has identified two business segments viz. Plywood and Tea. Segments have been identified on the basis of the products of the company. Operating segment disclosed are consistent with the information provided to and reviewed by the Chief Operating Decision Maker (CODM).

a) Revenue and expenses have been identified to a segment on the basis of relationship to operating activities of the segment. Revenue and expenses which relate to enterprise as a whole and are not allocable to a segment on reasonable basis have been disclosed as “Unallocable”.

b) Segment Assets and Segment Liabilities represent assets and liabilities of respective segments. Investments, tax related assets and other assets and liabilities that can not be allocated to a segment on reasonable basis have been disclosed as “Unallocable”.

9. Disclosure under Schedule V to the SEBI (Listing Obligations and Disclousre Requirments) Regulations, 2015 :

There are no transactions (except related party transactions) which are required to be disclosed under Schedule V to the SEBI (Listing Obligation and Disclousre Requirments) Regulations, 2015.

10. The Boards of Directors in its meeting held 16^th September, 2016 had approved the scheme of amalgamation (the scheme) of P S Plywood Products Private Limited, an associate of the Company, into the Company with effect from 1^st April, 2016. The petition for merger has been filed with The Hon’ble National Company Law Tribunal, Kolkata Bench upon obtaining the approval from the Bombay Stock Exchange. Pending requisite approvals, merger has not been accounted in the financial statements.

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

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Mar 31, 2016

(e) The Company has only one class of equity shares having a par value of '' 10 per share. Each holder of equity shares is entitled to one vote per share. The holders of equity shares are entitled to receive dividends as declared from time to time. In the event of liquidation of the Company, the holders of equity shares will be entitled to receive remaining assets of the Company, after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders.

(f) Shareholders holding more than 5 % of the equity shares in the Company:

1. The Company has not received any memorandum (as required to be filed by the suppliers with the notified authority under the Micro, Small and Medium Enterprises Development Act, 2006) claiming their status as on 31^st March, 2016 as micro or small or medium enterprises. Consequently the amount due to micro and small enterprises as per section 22 of the above said Act is '' Nil (Previous year '' Nil).

2. Segment information as per Accounting Standard - 17 on ‘Segment Reporting’:

The Company has identified two business segments viz. Plywood and Tea. Segments have been identified and reported taking into account the nature of the products, the differing risks and returns, the organizational structure & internal business reporting system.

a) Revenue and expenses have been identified to a segment on the basis of relationship to operating activities of the segment. Revenue and expenses which relate to enterprise as a whole and are not allocable to a segment on reasonable basis have been disclosed as “Unallowable”.

b) Segment Assets and Segment Liabilities represent assets and liabilities of respective segments. Investments, tax related assets and other assets and liabilities that cannot be allocated to a segment on reasonable basis have been disclosed as “Unallowable”.

Notes:

a) There are no transactions between segments. Common costs are apportioned on a reasonable basis.

b) Since the Company’s activities / operations are primarily within the country, there is only one geographical segment.

c) Figures in the brackets pertain to previous year.

3. Depreciation for the previous year was aligned to meet the requirement of Schedule II of the Companies Act, 2013 and accordingly an amount of Rs, 29.49 Lakhs (Net of Deferred Tax Rs, 14.83 Lakhs) in relation to the assets whose useful life has already exhausted was adjusted with retained earnings.

4. Details of Investment covered under section 186(4) of the Companies Act 2013 are given under “Non Current Investments” under Note No. 10.

5. Related Party Disclosures

Names of related parties & description of relationship

Associates : P S Plywood Products Pvt. Ltd.

Enterprises over which KMP and his relatives have significant influence : Abhinandan Fintex Pvt. Ltd.

Calcutta Technicians & Advisers Ltd.

Chitperi Farm Pvt. Ltd.

Madhya Bharat Papers Ltd.

J S M & Company

Key Management Personnel : Shri Sudeep Chitlangia (Managing Director)

Shri Sohan Lal Yadav (Whole-time Director)

6. Disclosure under Schedule V to the SEBI (Listing Obligations and Disclosure Requirement) Regulations, 2015

There are no transactions (except related party transactions) which are required to be disclosed under Schedule V to the SEBI (Listing Obligations and Disclosure Requirement) Regulations, 2015.

7. Disclosure pursuant to AS-29 on Provisions, Contingent Liabilities and Contingent Assets :

a) No provision for Contingent Liabilities was made during the year and no provision was outstanding at the beginning and at the end of the year

b) The Contingent Liabilities mentioned at Sl No.2 are dependent upon Court decision / out of court settlement / disposal of appeals etc.

8. Disclosure pursuant to AS - 15 (revised 2005) on “Employee Benefits"

Defined Contribution Plan:

Employee benefits in the form of Provident Fund, Pension Scheme and Superannuation Fund are considered as defined contribution plan and the contributions are made in accordance with the relevant statute and are recognized as an expense when employees have rendered service entitling them to the contributions. The contribution to defined contribution plan, recognized as expense for the year are as under:

Note No. 9 (Contd.)

Defined Benefit Plan:

Post employment and other long-term employee benefits in the form of gratuity, sick leave and earned leave encashment are considered as defined benefit obligation. The present value of obligation is determined based on actuarial valuation using projected unit credit method as at the Balance Sheet date. The amount of defined benefits recognized in the balance sheet represent the present value of the obligation as adjusted for unrecognized past service cost, and as reduced by the fair value of plan assets.

Any asset resulting from this calculation is limited to the discounted value of any economic benefits available in the form of refunds from the plan or reductions in future contributions to the plan. The amount recognized in the statement of profit and loss in respect of Employees Benefit Schemes based on actuarial reports is as follows:

VII. Expected Employer’s Contribution The Expected contributions for Defined Benefit Plan for the next financial year for the next year will be in line with Financial Year 2015-16

VIII. Basis used to determine the Expected Rate of Return on Plan Assets:

The expected rate of return on plan assets is determined considering several applicable factors, mainly the composition of plan assets held, assessed risks, historical results of return on plan assets and the Company’s policy for plan assets management.

IX. Basis of estimates of rate of escalation in salary

The estimates of rate of escalation in salary considered in actuarial valuation, take into account inflation, seniority, promotion and other relevant factors including supply and demand in the employment market. The above information is certified by the actuary.

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

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Mar 31, 2015

1. The Company has only one class of equity shares having a par value of Rs. 10 per share. Each holder of equity shares is entitled to one vote per share. The holders of equity shares are entitled to receive dividends as declared from time to time. In the event of liquidation of the Company, the holders of equity shares will be entitled to receive remaining assets of the Company, after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders.

2. Nature of securities:

Term loan from entities other than banks is secured by first charge on the Company's immovable properties situated at Jeypore (Assam) by deposit of title deeds and also by hypothecation of all plant and machinery and other fixed assets of the Company, both present & future, and is additionally secured by personal guarantee of the Managing Director.



As at As at 31st March, 31st March, 2015 2014

3. Contingent Liabilities not provided for in respect of :

a) Uncalled Capital against partly paid-up shares held as investment 8,000 8,000

b) Demand raised by Govt. authorities in respect of Taxes and Duties and contested 78,447,196 68,318,082 by the Company

Amount Paid against above 1,399,318 1,450,316

4. The Company has not received any memorandum (as required to be filed by the suppliers with the notified authority under the Micro, Small and Medium Enterprises Development Act, 2006) claiming their status as on 31st March, 2015 as micro or small or medium enterprises. Consequently the amount due to micro and small enterprises as per section 22 of the abovesaid Act is Rs. Nil (Previous year Rs. Nil).

5. Segment information as per Accounting Standard - 17 on 'Segment Reporting':

The Company has identified two business segments viz. Plywood and Tea. Segments have been identified and reported taking into account the nature of the products, the differing risks and returns, the organisational structure & internal business reporting system.

a) Revenue and expenses have been identified to a segment on the basis of relationship to operating activities of the segment. Revenue and expenses which relate to enterprise as a whole and are not allocable to a segment on reasonable basis have been disclosed as "Unallocable".

b) Segment Assets and Segment Liabilities represent assets and liabilities of respective segments. Investments, tax related assets and other assets and liabilities that can not be allocated to a segment on reasonable basis have been disclosed as "Unallocable".

6. The company has charged depreciation based on the revised remaining useful life of the assets as per the requirment of Schedule II of the Companies Act, 2013 effective from April 1, 2014. Further based on transitional provisions provided in note 7(b) of Schedule 11, an amount of Rs. 29.49 lacs (Net of Deferred Tax Rs. 14.83Lacs) has been adjusted with retained earnings. The impact of such change on current year depreciation is not material.

7. Names of related parties & description of relationship

Associates : P S Plywood Products Pvt. Ltd. Enterprises over which KMP and his relatives have significant influence : Abhinandan Fintex Pvt. Ltd. Calcutta Technicians & Advisers Ltd. Madhya Bharat Papers Ltd. J S M & Company

Key Management Personnel : Shri Sudeep Chitlangia (Managing Director) Shri Sohan Lal Yadav (Whole Time Director) Ms. Jaya Sengupta (CFO) Shri Ravi Kumar Murarka (Company Seceratory)

8. Disclosure under clause 32 of the Listing Agreement:

There are no transactions (except related party transactions) which are required to be disclosed under Clause 32 of the Listing Agreement with the Stock Exchanges where the Equity Shares of the Company are listed.

9. Disclosure pursuant to AS-29 on Provisions, Contingent Liabilities and Contingent Assets :

a) No provision for Contingent Liabilities was made during the year and no provision was outstanding at the beginning and at the end of the year.

b) The Contingent Liabilities mentioned at Sl No.2 are dependent upon Court decision / out of court settlement / disposal of appeals etc.

10. Defined Benefit Plan:

Post employment and other long-term employee benefits in the form of gratuity, sick leave and earned leave encashment are considered as defined benefit obligation. The present value of obligation is determined based on actuarial valuation using projected unit credit method as at the Balance Sheet date. The amount of defined benefits recognized in the balance sheet represent the present value of the obligation as adjusted for unrecognized past service cost, and as reduced by the fair value of plan assets.

A. Basis used to determine the Expected Rate of Return on Plan Assets:

The expected rate of return on plan assets is determined considering several applicable factors, mainly the composition of plan assets held, assessed risks, historical results of return on plan assets and the Company's policy for plan assets management.

B. Basis of estimates of rate of escalation in salary

The estimates of rate of escalation in salary considered in actuarial valuation, take into account inflation, seniority, promotion and other relevant factors including supply and demand in the employment market. The above information is certified by the actuary.

C. Other disclosures

The Gratuity Expenses have been recognized in "Contribution to Provident, Pension & Other Funds" and provision for Sick Leave and Earned Leave Encashment in "Salaries and Wages" under Note No. 25.

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

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Mar 31, 2014

1. Nature of securities

Term loan from entities other than banks is secured by first charge on the Company''s immovable properties situated at Jeypore (Assam) by deposit of title deeds and also by hypothecation of all plant and machinery and other fixed assets of the Company, both present & future, and is additionally secured by personal guarantee of the Managing Director.

2 Notes :

a) Land, Building and Plant & Machinery were revalued on 30th June 1985 as per valuation report of M/S. Consolidated Enterprises on the basis of net replacement value and appreciation on revaluation aggregating to Rs. 1,63,77,041/- was credited to Capital Reserve.

b) Intangible Assets

The unamortised amount of Computer Software (Acquired) Rs. 71,49,182 (Previous year Rs. 45,66,301/-) is to be amortised at the rate of 20% per annum over a period of1-5 years as the case may be.

3 Note No. :

Other disclosures

1. The Company has not received any memorandum (as required to be filed by the suppliers with the notified authority under the Micro, Small and Medium Enterprises Development Act, 2006) claiming their status as on 31st March 2014 as micro or small or medium enterprises. Consequently the amount due to micro and small enterprises as per section 22 of the abovesaid Act is Rs. Nil (Previous year Rs. Nil).

2. Segment information as per Accounting Standard - 17 on ''Segment Reporting''

The Company has identified two business segments viz. Plywood and Tea. Segments have been identified and reported taking into account the nature of the products, the differing risks and returns, the organisational structure & internal business reporting system.

a) Revenue and expenses have been identified to a segment on the basis of relationship to operating activities of the segment. Revenue and expenses which relate to enterprise as a whole and are not allocable to a segment on reasonable basis have been disclosed as "Unallocable".

b) Segment Assets and Segment Liabilities represent assets and liabilities of respective segments. Investments, tax related assets and other assets and liabilities that can not be allocated to a segment on reasonable basis have been disclosed as "Unallocable".

4 Disclosure under clause 32 of the Listing Agreement:

There are no transactions (except related party transactions) which are required to be disclosed under Clause 32 of the Listing Agreement with the Stock Exchanges where the Equity Shares of the Company are listed.

5 Disclosure pursuant to AS-29 on Provisions, Contingent Liabilities and Contingent Assets :

a) No provisions for Contingent Liabilities was made during the year and no provision was outstanding at the beginning and at the end of the year.

b) The Contingent Liabilities mentioned at Sl No.2 are dependent upon Court decision / out of court settlement / disposal of appeals etc.

6 Defined Benefit Plan:

Post employment and other long-term employee benefits in the form of gratuity, sick leave and earned leave encashment are considered as defined benefit obligation. The present value of obligation is determined based on actuarial valuation using projected unit credit method as at the Balance Sheet date. The amount of defined benefits recognized in the balance sheet represent the present value of the obligation as adjusted for unrecognized past service cost, and as reduced by the fair value of plan assets.

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

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Mar 31, 2013

(A) The Company has only one class of equity shares having a par value of Rs. 10 per share. Each holder of equity shares is entitled to one vote per share. The holders of equity shares are entitled to receive dividends as declared from time to time. In the event of liquidation of the Company, the holders of equity shares will be entitled to receive remaining assets of the Company, after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders.

* General reserve is primarily created to comply with the requirements of section 205 (2A) of Companies Act, 1956. This is a free reserve, and can be utilized for any general purpose.

Term loan from entities other than banks is secured by first charge on the Company''s immovable properties situated at Jeypore (Assam) by deposit of title deeds and also by hypothecation of all plant and machinery and other fixed assets of the Company, both present & future, and is additionally secured by personal guarantee of the Managing Director.

Notice here hypothecation of present & future stocks and book debts and second charge on the Company''s immovable properties situated at Jeypore (Assam) by deposit of title deeds and also by second charge on all plant & machinery and other fixed assets of the Company bossed &fZ and is additionally secured by personal guarantees of Managing Director near is no amount due and outstanding to be credited to Investor Education & Protection Fund.

Notes

Notes Land, Building and Plant & Machinery were revalued on 30- June 1985 as per valuation report: of MS Consolidated Enterprises on the basis of net replacement value and appreciation on revaluation aggregating to Rs. 1,63,77,041/ was credited to Capital Reserve.

b) The amount of Computer Software (Acquired) Rs. 45 66,301/- (Previous year Rs. S5,977/-) is to be amortized at the rate of 20% per annum over a period of 2 - 5 years as the case may be.

Carried forward losses have been recognized as deferred tax assets as there is virtual certainty that such deferred tax asset can be realized against future taxable profits in the forthcoming financial years.

* Deferred tax assets and deferred tax liabilities have been offset as they relate to the same governing taxation laws.

* includes Rs. 59,07,544/- (Previous year Rs. 8,61,995) under litigation.

* The amount of Excise Duty & cess shown above represents differential excise duty on opening & closing stock of finished goods.

1. The Company has not received any memorandum (as required to be filed by the suppliers with the notified authority ! under the Micro, Small and Medium Enterprises Development Act, 2006) claiming their status as on 31!t March 2013 as f micro or small or medium enterprises. Consequently the amount due to micro and small enterprises as per section 22 of f the above said Act is Rs. Nil (Previous year Rs. Nil).

2. Segment information as per Accounting Standard -17 on '' Segment Reporting i The Company has identified two business segments viz. Plywood and Tea. Segments have been identified and reported i taking into account the nature of the products, the differing risks and returns, the organizational structure & internal ! business reporting system.

a) Revenue and expenses have been identified to a segment on the basis of relationship to operating activities of -the segment. Revenue and expenses which relate to enterprise as a whole and are not allocable to a segment on reasonable basis have been disclosed as "Unallowable".

b) Segment Assets and Segment Liabilities represent assets and liabilities of respective segments. Investments, tax related assets and other assets and liabilities that cannot be allocated to a segment on reasonable basis have been disclosed as "Unallocable".

Notes*

c, The pries good and taoee no p— fo, doubtful deb* in respect of due, tan such related parties is required.

3. Disclosure under clause 32 of the Listing Agreement:

There are bow transactions (except related party transactions) which are required to be disclosed under Clause 32 of the Listing Agreement with the Stock Exchanges where the Equity Shares of the Company are listed.

4. Disclosure pursuant to AS-29 on Provisions, Contingent Liabilities and Contingent Assets :

a) No provisions for Contingent Liabilities was made during the year and no provision was outstanding at the beginning and at the end of the year.

b) The Contingent Liabilities mentioned at SI No.2 are dependent upon Court decision / out of court settlement / disposal of appeals etc. ,

5. Disclosure pursuant to AS -15 (revised 2005) on "Employee Benefits"

Defined Contribution Plan:

Employee benefits in the form of Provident Fund, Pension Scheme and Superannuation Fund are considered as defined contribution plan and die contributions are made in accordance with the relevant statute and are recognized as an expense when employees have rendered service entitling them to the contributions. The contribution to defined contribution plan,

Post employment and other long-term employee benefits in the form of gratuity, sick leave and earned leave encashment are considered as defined benefit obligation. The present value of obligation is determined based on actuarial valuation

using projected unit credit method as at the Balance Sheet date. The amount of defined benefits recognized in die balance sheet represent the present value of the obligation as adjusted for unrecognized past service cost, and as reduced by the fair value of plan assets.

Any asset resulting from this calculation is limited to the discounted value of any economic benefits available in the form of refunds from the plan or reductions in future contributions to the plan. The amount recognized in the statement of profit and loss in respect of Employees Benefit Schemes based on actuarial reports is as follows:

I. Basis used to determine the Expected Rate of Return on Plan Assets

The expected rate of return on plan assets is determined considering several applicable factors, mainly the composition of plan assets held, assessed risks, historical results of return on plan assets and the Company s policy for plan assets management.

II Basis of estimates of rate of escalation in salary.

The estimates of rate of escalation in salary considered in actuarial valuation, take into account inflation, seniority, | promotion and other relevant factors including supply and demand in the employment market. The above

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Mar 31, 2012

Note No : 1.1

Share capital

(e) The Company has only one class of equity shares having a par value of Rs. 10 per share. Each holder of equity shares is entitled to one vote per share. The holders of equity shares are entitled to receive dividends as declared from time to time. In the event of liquidation of the company the holders of equity shares will be entitled to receive remaining assets of the company, after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders.

Note No : 2 Long-term borrowings

(a) Nature of securities:

Term loan from entities other than banks is secured by first charge on the Company's immovable properties situated at Jeypore (Assam) by deposit of title deeds and also by hypothecation of all plant and machinery and other fixed assets of the Company, both present & future, and is additionally secured by personal guarantee of the Managing Director.

Note No : 3.1 FIXED ASSETS

a)Land. Building and Plant & Machinery were revalued on 30th June 1985 as per valuation report of M/s. Consolidated Enterprises on the basis of net replacement value and appreciation on revaluation aggregating to Rs. 1,63,77.041/- was credited to Capital Reserve.

b) Intangible Assets

The unamortised amount of Computer Software (Acquired) Rs. 49.85.977/- (Previous year Rs. 16,31.249/-) is to be amortised at the rate of 20% per annum over a period of 3 - 5 years as the case may be.

As at AS at 31.03.2012 31.03.2011 Rs. Rs.

Note No. : 3.2

1 Estimated amount of contract remaining to be executed not provided for 5,464,406 505.877

2. Contingent Liabilities not provided for in respect of:

a) Uncalled Capital against partly paid-up shares held as investment 8,000 8,000

b) Guarantees furnished by Company's Bankers on behalf of the Company 465,845 465,845

e) Demand raised by Govt. authorities in respect of Taxes and Duties and contested by the Company . 37,640,576 30.001,270

4. The Company has not received any memorandum (as required to be filed by the suppliers with the notified authority under the Micro. Small and Medium Enterprises Development Act. 2006) claiming their status as on 31st March 2012 as micro or small or medium enterprises. Consequently the amount due to micro and small enterprises as per section 22 of the above said Act is Rs. Nil (Previous year Rs. Nil).

5. Segment information as per Accounting Standard - 17 on Segment Reporting :

The Company has identified two business segments viz. Plywood and Tea. Segments have been identified and reported taking into account the nature of the products, the differing risks and returns, the organisational structure & internal business reporting system.

a) Revenue and expenses have been identified to a segment on the basis of relationship to operating activities of the segment. Revenue and expenses which relate to enterprise as a whole and are not allocable to a segment on reasonable basis have been disclosed as "Unallocable".

b) Segment Assets and Segment Liabilities represent assets and liabilities of respective segments. investments, tax related assets and other assets and liabilities that can not be allocated to a segment on reasonable basis have been disclosed as "Unallocable".

Notes :

a) There are no transactions between segments. Common costs are apportioned on a reasonable basis.

b) Since the company's activities/operations are primarily within the country, there is only one geographical segment.

c) Figures in the brackets pertain to previous year.

6. Related Party Disclosures

Notes:

a) Figures in the brackets pertain to previous year.

b) The Company has neither written off nor written back any amount recoverable/payable from/to any related party during the year.

c) The amount due from related parties are good and hence no provision for doubtful debts in respect of dues from such related parties is required.

Names of related parties & description of relationship

Associates : Abhinandan Fintex Pvt Ltd. Calcutta Technician & Advisers Ltd. Madhya Unarm Papers Ltd. P S Plywood Products Pvt. Ltd. Purma Timber Products Ltd.

Key Management Personnel : Shri Sudeep Chitlangia Shri Sohan Lal Yadav

7. Disclosure under clause 32 of the Listing Agreement:

There are no transactions (except related party transactions) which are required to be disclosed under Clause 32 of the Listing Agreement with the Stock Exchanges where the Equity Shares of the Company are listed.

8. Disclosure pursuant to AS-29 on Provision, Contingent Liabilities and Contingent Assets :

a) No provisions for Liabilities was made during the year and no provision was outstanding at the beginning and at the end of the year.

b) The Contingent liabilities mentioned at SI No. 1 are dependent upon Court decision/out of court settlement/disposal of appeals etc.

9. Disclosure pursuant to AS - 15 (revised 2005) on "Employee Benefits"

Defined Benefit Plan:

Post employment and other long-term employee benefits in the form of gratuity, sick leave and earned leave encashment are considered as defibenefit obligation. The Present value of obligation is determined based on actuarial valuation using projected unit credit method as at the Balance Sheet dale. The amount of defined benefits recognized in the balance sheet represent the present value of the obligation as adjusted for unrecognized past service cost, and as reduced by the fair value of plan assets.

VIII. Basis used to determine the Expected Rate of Return on Plan Assets:

The expected rate of return on plan assets is determined considering several applicable factors, mainly the composition of plan assets held, assessed risks, historical results of return on plan assets and the Company's policy

IX Basis of estimates of rate of escalation in salary

The estimates of rate of escalation in salary considered in actuarial valuation, take into account inflation. seniority, promotion and other relevant factors including supply and demand in the employment market. The above information is certified by the actuary.

10. Previous year's figure have been rearranged/regrouped wherever necessary to conform to current year's presentation as required by the Revised Schedule VI to the Companies Act, 1956.

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Mar 31, 2010

Rs. Rs.

1. Estimated amount of contract remaining to be executed

on Capital Account and not provided for , 137,700 25,106,109

2. Contingent Liabilities not provided for in respect of:

a) Uncalled Capital against partly paid-up shares held as investment 8,000 8.000

b) Demand raised by Govt.authorities in respect of Taxes and Duties and

contested by the Company . 24,385,039 24,459,239

3. Sundry Debtors include Rs. 861,995/- (Previous year Rs. 861,995/-) under litigation.

4. Segment information as per Accounting Standard -17 on Segment Reporting:

The Company has identified two business segments viz. Plywood and Tea. Segments have been identified and reported taking into account the nature of the products, the differing risks and returns, the organisational structure & internal business reporting system.

a) Revenue and expenses have been identified to a segment on the basis of relationship to operating activities of the segment. Revenue and expenses which relate to enterprise as a whole and are not allocable to a segment on rea- sonable basis have been disclosed as "Unallocable".

b) Segment Assets and Segment Liabilities represent assets and liabilities of respective segments. Investments,tax related assets and other assets and liabilities that can not be allocated to a segment on reasonable basis have been disclosed as "Unallocable".

Notes :

a) There are no transactions between segments. Common costs are apportioned on a reasonable basis.

b) Since the companys activities / operations are primarily within the country, there is only one geographical segment.

c) Figures in the brackets pertain to previous year.

a) Figures in the brackets pertain to previous year.

b) The Company has neither written off nor written back any amount recoverable / payable from / to any related party during the year.

c) The amount due from related parties are good and hence no provision for doubtful debts in respect of dues from such related parties is required.

5. Disclosure under clause 32 of the Listing Agreement:

There are no transactions (except related party transactions) which are required to be disclosed under Clause 32 of the Listing Agreement with the Stock Exchanges where the Equity Shares of the Company are listed.

6. Disclosure pursuant to AS-29 on Provisions, Contingent Liabilities and Contingent Assets:

a) No provisions for Liabilities was made during the year and no provision was outstanding at the beginning and at the end of the year.

b) The Contingent liabilities mentioned at SI No.l are dependent upon Court decision / out of court settlement / disposal of appeals etc.

7. Land, Building and Plant & Machinery were revalued on 30th June 1985 as per valuation report of M/S. Consolidated Enterprises on the basis of net replacement value and appreciation on revaluation aggregating to Rs. 1,63,77,041/- was credited to Capital Reserve.

8. Intangible Assets

The unamortised amount of Computer Software (Acquired) Rs. 1,256,781/- is to be amortised at the rate of 20% per annum over a period of 4 - 5 years as the case may be.

9. Disclosure pursuant to AS - 15 (revised 2005) on "Employee Benefits"

Defined Benefit Plan:

Post employment and other long-term employee benefits in the form of gratuity, sick leave and earned leave encashment are considered as defined benefit obligation. The present value of obligation is determined based on actuarial valuation using projected unit credit method as at the Balance Sheet date. The amount of defined benefits recognized in the balance sheet represent the present value of the obligation as adjusted for unrecognized past service cost, and as reduced by the fair value of plan assets.

Any asset resulting from this calculation is limited to the discounted value of any economic benefits available in the form of refunds from the plan or reductions in future contributions to the plan. The amount recognized in the profit and loss account in respect of Employees Benefit Schemes based on actuarial reports is as follows:

10. Figures for the previous year have been regrouped / rearranged wherever considered necessary to make them comparable with those of the current year.