Mar 31, 2018
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED MARCH 31, 2018
There were no transfers between level 1 and level 2 for recurring fair value measurements during the year.
All assets and liabilities for which fair value is measured or disclosed in the financial statements are categorized within the fair value hierarchy, described as follows, based on the lowest level input that is significant to the fair value measurement as a whole;
Level 1- Quoted (unadjusted) market prices in active markets for identical assets or liabilities.
Level 2- Valuation techniques for which the lowest level input that is significant to the fair value measurement is directly or indirectly observable.
Level 3- Valuation techniques for which the lowest level input that is significant to the fair value measurement is unobservable. 58) FINANCIAL RISK MANAGEMENT
The Company''s principal financial liabilities, other than derivatives, comprise borrowings, trade and other payables. The Company''s principal financial assets include loans, trade and other receivables and cash and cash equivalents that derive directly from its operations. The Company also holds FVTOCI investments and enters into derivative transactions.
The Company is exposed to market risk, credit risk and liquidity risk. The Company''s management monitors these risks and provides assurance that the financial risk activities are governed by appropriate policies and procedures. The financial risks are identified, measured and managed in accordance with the company''s policies and risk objectives. All derivative activities for risk management purposes are carried out by teams that have the appropriate skills, experience and supervision. The Board of Directors reviews and agrees policies for managing each of these risks, which are summarised below.
Credit risk
Credit risk is the risk of financial loss to the Company if a customer or counterparty to a financial instrument fails to meet its contractual obligations, and arises principally from the Company''s receivables from customers, loans and investments. Credit risk is managed through credit approvals, establishing credit limits and continuously monitoring the creditworthiness of counterparty to which the Company grants credit terms in the normal course of business.
Trade receivables
The Company evaluates the concentration of risk with respect to trade receivables as low, as its customers are located in several jurisdictions and industries and operate in largely independent markets. The credit worthiness are monitored at periodical intervals. The maximum exposure to credit risk at the reporting date is the carrying value of each class of financial assets.
The Company has used expected credit loss (ECL) model for assessing the impairment loss. For the purpose, the Company uses a provision matrix to compute the expected credit loss amount. The provision matrix takes into account external and internal risk factors and historical data of credit losses from various customers.
(Rs in Lakhs) |
|||
Particulars |
As at March 31, 2018 |
As at March 31, 2017 |
As at April 01, 2016 |
Financial assets for which loss allowances is measured using the expected credit loss |
|||
Trade receivables |
|||
less than 180 days |
5.75 |
5.17 |
4.62 |
180 -365 days |
0.24 |
2.28 |
0.99 |
1 year to 2 years |
1.61 |
1.75 |
3.68 |
2 years to 3 years |
1.76 |
5.08 |
2.43 |
above 3 years |
6.44 |
1.44 |
- |
Total |
15.80 |
15.72 |
11.72 |
(Rs. in Lakhs) |
|||
Particulars |
As at March 31, 2018 |
As at March 31, 2017 |
As at April 01, 2016 |
Movement in the expected credit loss allowance on trade receivables |
|||
Balance at the beginning of the year |
15.72 |
11.72 |
- |
Addition |
21.41 |
16.96 |
11.72 |
Write - offs |
- |
- |
- |
Recoveries |
21.33 |
12.96 |
- |
Balance at the end of the year |
15.80 |
15.72 |
11.72 |
Liquidity risk
Liquidity risk is the risk that the Company will not be able to meet its financial obligations when they become due. The Company manages liquidity risk by continuously monitoring forecast and actual cash flows on daily, monthly and yearly basis. The Company ensures that there is a free credit limit available at the start of the year which is sufficient for repayments getting due in the ensuing year. Loan arrangements, credit limits with various banks including working capital and monitoring of operational and working capital issues are always kept in mind for better liquidity management
The Company has unutilised working capital limits from banks of Rs. 752.21 lakhs as on March 31, 2018; Rs. 670.44 lakhs as on March 31, 2017 and Rs 938.55 lakhs as on April 01, 2016.
The table below provides details regarding the contractual maturities of significant financial liabilities :
As at March 31, 2018 |
(Rs in Lakhs) |
|||
Particulars |
Less than 1 year |
1 -5 years |
More than 5 years |
Total |
Non derivative |
||||
Borrowings |
1,812.43 |
- |
263.34 |
2,075.77 |
Trade payables |
2,330.28 |
33.89 |
- |
2,364.17 |
Other financial liabilities |
503.93 |
38.93 |
68.70 |
611.56 |
Derivative |
||||
Forward exchange contracts |
- |
- |
- |
- |
As at March 31, 2017 |
(Rs in Lakhs) |
|||
Particulars |
Less than 1 year |
1 -5 years |
More than 5 years |
Total |
Non derivative |
||||
Borrowings |
1,839.63 |
22.07 |
237.80 |
2,099.50 |
Trade payables |
1,785.13 |
29.72 |
- |
1,814.85 |
Other financial liabilities |
409.42 |
34.13 |
65.26 |
508.81 |
Derivative |
||||
Forward exchange contracts |
4.26 |
- |
- |
4.26 |
As at April 01, 2016 |
(Rs in Lakhs) |
|||
Particulars |
Less than 1 year |
1 -5 years |
More than 5 years |
Total |
Non derivative |
||||
Borrowings |
4,311.40 |
27.04 |
215.13 |
4,553.57 |
Trade payables |
1,697.63 |
50.28 |
- |
1,747.91 |
Other financial liabilities |
470.50 |
29.93 |
81.00 |
581.43 |
Derivative |
||||
Forward exchange contracts |
2.24 |
- |
- |
2.24 |
Market Risk- Foreign currency risk
This is the risk that the Company may suffer losses as a result of adverse exchange rate movement during the relevant period. As a policy, the Company is covering foreign exchange risk on account of import to avoid any loss situation due to adverse fluctuations in currency rates. There is periodical review of foreign exchange transactions and hedging by the
Company''s executives.
Derivative instruments and unhedged foreign currency exposure:
(a) Derivative outstanding as at the reporting date
Particulars |
As at March 31, 2018 |
As at March 31, 2017 |
As at April 01, 2016 |
Trade payable on account of purchase of goods |
|||
Forward contracts to buy USD ($ in lakhs) |
2.80 |
1.02 |
2.41 |
Amount outstanding in Indian Rupee (Rs in lakhs) |
183.11 |
70.27 |
163.31 |
Derivative financial instruments such as foreign exchange forward contracts are used for hedging purposes and not as trading or speculative instruments.
(b) Particulars of unhedged foreign currency exposures as at the reporting date
Particulars |
As at March 31, 2018 |
As at March 31, 2017 |
As at April 01, 2016 |
Trade payable on account of purchase of goods |
|||
Amount outstanding in USD ($ in lakhs) |
2.01 |
0.70 |
0.23 |
Amount outstanding in Euro (⬠in lakhs) |
0.13 |
- |
- |
Amount outstanding in Indian Rupee (Rs in lakhs) |
141.45 |
45.57 |
15.05 |
Market Risk- Price Risk Exposure
Equity Price Risk is related to the change in market reference price of the investments in equity securities. The Company is exposed to equity price risks arising from equity investments. Equity investments are held for strategic rather than trading purposes. The Company does not actively trade these investments. Profit for the year would increase/ (decrease) as a result of gains/ losses on equity securities as at fair value through profit or loss.
Sensitivity
The table below summarizes the impact of increases/decreases of the BSE index on the Company''s equity and Gain/Loss for the period. The analysis is based on the assumption that the index has increased by 5 % or decreased by 5 % with all other variables held constant, and that all the Company''s equity instruments moved in line with the index
Impact on Profit before tax
(Rs in Lakhs) |
|||
Particulars |
As at March 31, 2018 |
As at March 31, 2017 |
As at April 01, 2016 |
BSE Sensex 30- Increase 5% |
0.00 |
0.00 |
0.00 |
BSE Sensex 30- Decrease 5% |
-0.00 |
-0.00 |
-0.00 |
Above referred sensitivity pertains to quoted equity investment. Profit for the year would increase/ (decrease) as a result of gains/ losses on equity securities as at fair value through profit or loss. Since the Company has nominal investments in quoted equity and hence, sensitivity analysis is reflecting zero value.
Foreign Currency Risk Sensitivity
A change of 5% in Foreign currency would have following Impact on profit before tax
(Rs in Lakhs) |
|||
Particulars |
As at March 31, 2018 |
As at March 31, 2017 |
As at ApriI 01, 2016 |
USD and Euro |
|||
5% Increase |
(16.23) |
(5.79) |
(8.92) |
5% Decrease |
16.23 |
5.79 |
8.92 |
Interest rate risk
The Company has loan facilities on floating interest rate, which exposes the Company to risk of changes in interest rates. The management monitors the interest rate movement and manages the interest rate risk by evaluating interest rate swaps etc. based on the market/ risk perception.
For the years ended March 31, 2018 and March 31, 2017, every 50 basis point decrease in the floating interest rate component applicable to its loans and borrowings would increase the Company''s profit before tax by approximately Rs 8.92 Lakhs and Rs 8.60 Lakhs respectively. A 50 basis point increase in floating interest rate would have led to an equal but opposite effect.
Commodity rate risk
Exposure to market risk with respect to commodity prices primarily arises from the Company''s purchases and sales of News Prints including the raw material components for such active News Prints. These are commodity products, whose prices may fluctuate significantly over short periods of time. The prices of the Company''s some of the raw materials generally fluctuate in line with commodity cycles, although the prices of raw materials used in the Company''s business are generally more volatile. Commodity price risk exposure is evaluated and managed through operating procedures and sourcing policies. As of March 31, 2018, the Company had not entered into any material derivative contracts to hedge exposure to fluctuations in commodity prices.
59) RELATED PARTY DISCLOSURES
As per Ind AS 24, all related parties have been identified by the management and relied upon by the auditors. There are no related parties where control exists. i) Key Management Personnel:
Mr. N.K. Pasari ii) Relative of Key Management Personnel:
Mr. B.N. Pasari
Mr. Naynesh Pasari iii) Enterprise where Key Management Personnel/Relative of Key Managerial Personnel has significant influence:
Laxmi Traders Gopala Sales Pvt. Ltd. Bishwanath Traders & Investments Ltd. SKCS Finvest Pvt. Ltd. |
Amer Hotels Ltd. Bishwanath Industries Ltd. Govinda Power & Products Pvt. Ltd. Inficore Visions Pvt. Ltd. |
iv) Details of transactions with the related parties:
Nature of transactions |
2017-2018 |
2016-2017 |
||||
Referred in (i) above |
Referred in (ii) above |
Referred in (iii) above |
Referred in (i) above |
Referred in (ii) above |
Referred in (iii) above |
|
Expenses : |
||||||
Employee benefit expense* |
||||||
(short term employee benefits) |
||||||
Mr. N.K. Pasari |
15.73 |
- |
- |
9.59 |
- |
- |
Consultancy paid |
||||||
Mr. Naynesh Pasari |
- |
5.40 |
- |
- |
2.40 |
- |
Finance costs |
||||||
Gopala Sales Pvt. Ltd. |
- |
- |
2.59 |
- |
- |
2.33 |
Bishwanath Industries Ltd. |
- |
- |
23.07 |
- |
- |
20.68 |
Bishwanath Traders & Investments Ltd. |
- |
- |
2.28 |
- |
- |
2.05 |
Raw material purchase |
||||||
Govinda Power & Products Pvt. Ltd. |
- |
- |
7.91 |
- |
- |
6.98 |
Packing material purchase |
||||||
Gopala Sales Pvt. Ltd. |
- |
- |
106.09 |
- |
- |
71.42 |
Govinda Power & Products Pvt. Ltd. |
- |
- |
30.49 |
- |
- |
32.56 |
Income : |
||||||
Other operating revenues |
||||||
Gopala Sales Pvt. Ltd. |
- |
- |
5.81 |
- |
- |
4.64 |
Govinda Power & Products Pvt. Ltd. |
- |
- |
7.50 |
- |
- |
9.98 |
(Rs in Lakhs) |
||||||
Nature of transactions |
2017-2018 |
2016-2017 |
||||
Referred in (i) above |
Referred in (ii) above |
Referred in (iii) above |
Referred in (i) above |
Referred in (ii) above |
Referred in (iii) above |
|
Gopala Sales Pvt. Ltd. |
. |
. |
0.72 |
_ |
_ |
0.72 |
Govinda Power & Products Pvt. Ltd. |
- |
- |
0.66 |
- |
- |
0.66 |
SKCS Finvest Pvt. Ltd. |
- |
- |
0.06 |
- |
- |
0.06 |
Inficore Visions Pvt. Ltd. |
- |
- |
0.07 |
- |
- |
- |
*it does not include provision for gratuity and leave encashment as the same is not determinable since the actuarial valuation is done for the Company as a whole.
v) Closing balances receivables/payables
Particulars |
As at March 31, 2018 |
As at March 31, 2017 |
As at April 01, 2016 |
Referred in (i) above |
|||
Current financial liabilities-Others |
|||
Mr. N.K. Pasari |
1.61 |
1.27 |
0.79 |
Referred in (ii) above |
|||
Current financial liabilities-Trade payables |
|||
Mr. Naynesh Pasari |
0.45 |
0.45 |
0.09 |
Referred in (iii) above |
|||
Current financial assets-Trade receivables |
|||
SKCS Finvest Pvt. Ltd. |
0.07 |
- |
- |
Inficore Visions Pvt. Ltd. |
0.08 |
- |
- |
Current financial assets-Others |
|||
Gopala Sales Pvt. Ltd. |
- |
0.72 |
0.72 |
Govinda Power & Products Pvt. Ltd. |
- |
0.66 |
0.66 |
SKCS Finvest Pvt. Ltd. |
- |
0.06 |
0.06 |
Other current assets |
|||
Gopala Sales Pvt. Ltd. |
8.73 |
16.48 |
7.56 |
Govinda Power & Products Pvt. Ltd. |
0.07 |
- |
- |
Non-current financial liabilities-Borrowings* |
|||
Bishwanath Traders & Investments Ltd. |
22.98 |
20.70 |
18.65 |
Bishwanath Industries Ltd. |
223.89 |
200.82 |
180.13 |
Gopala Sales Pvt. Ltd. |
16.47 |
16.28 |
16.35 |
Current financial liabilities-Others |
|||
Gopala Sales Pvt. Ltd. |
2.16 |
2.16 |
0.24 |
Current financial liabilities-Trade payables |
|||
Laxmi Traders |
1.08 |
1.08 |
1.08 |
Amer Hotels Ltd. |
0.15 |
0.15 |
0.15 |
Govinda Power & Products Pvt. Ltd. |
3.98 |
5.56 |
3.32 |
Current financial liabilities-Others |
|||
Amer Hotels Ltd. |
0.15 |
0.15 |
0.15 |
Other current liabilities |
|||
Bishwanath Traders & Investments Ltd. |
1.63 |
1.63 |
1.63 |
*These figures are at amortised cost as per Ind AS 109, the original values are given below:
Particulars |
As at March 31, 2018 |
As at March 31, 2017 |
As at April 01, 2016 |
Bishwanath Traders & Investments Ltd. |
50.00 |
50.00 |
50.00 |
Bishwanath Industries Ltd. |
508.64 |
508.64 |
508.64 |
Gopala Sales Pvt. Ltd. |
20.00 |
20.00 |
20.00 |
60) Comparative corresponding figures for the previous year have been regrouped and/or re-arranged wherever considered necessary.
Mar 31, 2016
(b) Rights, preferences and restrictions attached to shares:
Equity shares
The Company has one class of equity shares referred to as equity shares having at par value of '' 10/- each. Each shareholder is entitled to one vote per share. In the event of liquidation, the equity-holders are eligible to receive the remaining assets of the Company after distribution of all preferential amounts, in proportion to their shareholding.
Preference shares
The Company has one class of preference shares referred to as preference shares redeemable at par value of '' 100/each. These shares carry a fixed cumulative dividend of 4% per annum and a preferential right in respect of dividend and capital over equity shareholders. The preference shares are redeemable at par on or before March 31, 2017. In view of arrears of dividend, preference shareholders are entitled to vote on every resolution placed before the Company.
Details of security and terms of repayment:
(a) Current maturities of long term borrowings are taken under current liabilities (refer note no. 9)
(b) Term loans from banks, under consortium arrangement having Bank of India as lead bank, are secured by first pari -passu charge on all movable and immovable property (other than current assets) of Kotputli unit both present and future, second charge on the current assets of the Company, collaterally secured by first pari-passu charge on the block assets of Bahadurgarh unit and by personal guarantee of two Directors of the Company.
(c) Term loans from banks are also collaterally secured by pledge of 48,20,400 equity shares (previous year 48,20,400) held by the promoter and promoter group.
(d) The term loan installments due on March 31, 2016 were not paid on its due date as the Company has submitted restructuring proposal to the banks, approval whereof is awaited. However, the same has been paid since the close of the financial year.
(e) Term loans from banks are repayable in half yearly installments. Loan wise maturity amount of previous year to be paid in 2016-17 is as under:-
(g) Unsecured loans are repayable on March 31, 2027. However, the Company has the option to pay before maturity by giving prior notice of 30 days.
(h) The above loans carry varying rates of interest with the maximum rate of interest going upto 12.45% (previous year 12.45%).
Details of Security:
(a) Cash credit facilities from banks under consortium arrangement having Bank of India as lead bank, are secured by first pari - passu charge on hypothecation of inventories and receivables and all other current assets of the Company, collaterally secured by second pari - passu charge on the entire movable and immovable assets of the Company both present and future and personal guarantee of two Directors of the Company.
(b) Cash credit facilities are also collaterally secured by pledge of 48,20,400 equity shares (previous year 48,20,400) held by promoter and promoter group.
(c) Maximum rate of interest was 11.45% per annum (previous year 11.45% per annum).
1) Disclosure under regulation 34(3) read with Schedule V of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 is not applicable since the Company does not have any subsidiary/associates.
2) DISCLOSURE OF HEDGED/UNHEDGED FOREIGN CURRENCY EXPOSURE
The Company uses forward exchange contracts to hedge its foreign exchange exposure. The Company does not use foreign exchange forward contracts for trading or speculation purposes.
3) The accumulated losses had fully eroded the net worth of the Company as on March 31,2013. Since 2013-14, the performance of the Company has been improved and it has resulted into earning of profit but the accumulated losses were still higher. As on March 31, 2016, the net worth of the Company has become positive. The Company is in continuous process of implementing various measures such as increasing the production, optimizing resources utilization, improving operational efficiencies and other cost control measures to improve the Company''s operating results and cash flows. With the improvement in business conditions, the Company expects to perform better in the future. The Company believes that these measures will result in substantial cash flows. Accordingly, Company''s financial statements have been prepared on a going concern basis. In the opinion of the Board, going concern assumption is appropriate for preparation and presentation of financial statements.
4) The reference filed by the Company with Board for Industrial & Financial Reconstruction based on negative net worth had already been registered by the Board. Now, as on March 31, 2016, the net worth of the Company has become positive and accordingly, necessary reference will be made to the Board.
5) Corporate Debt Restructuring (CDR) package was sanctioned to the Company vide LOA dated August 17, 2009. The package was successfully implemented by all the bankers w.e.f. the cutoff date i.e. April 01, 2009 as per terms and conditions set out in the Letter of Approval(LOA). The CDR lenders have a right to recompense of their waivers & sacrifices made as part of the CDR proposal. The recompense payable by the Company is contingent on various factors, outcome of which currently is materially uncertain and hence the proportionate amount payable as recompense has been treated as contingent liability.
6) During the previous year 2014-2015, the Company had revised the useful life of fixed assets as prescribed in Schedule II to the Companies Act, 2013. Accordingly an amount of '' 28.83 lacs (net of deferred tax) on account of assets whose useful life was already exhausted on April 01, 2014 was adjusted with Reserves and Surplus and the depreciation for that year was lower by '' 180.39 lacs.
7) (a) In the opinion of the management, current assets, loans and advances have a value on realization in the ordinary course of business at least equal to the amount at which they are stated in the balance sheet and provisions for all known/ expected liabilities have been made.
(b) The debit / credit balances of trade payables, trade receivables and short / long term loans and advances are subject to reconciliation /confirmation, although letter for confirmations have been sent. The management does not expect any material differences affecting the current year''s financial statements due to the same.
8) Net increase/decrease in excise duty liability on closing stock of finished goods as at year end has been shown as "Excise duty on stock (net)" in note no. 28 of Notes to the financial statements
9) In view of brought forward losses available under the Income Tax Act, 1961, no liability towards income tax and MAT u/s 115 JB is contemplated and hence, no ovision has been made in the books of accounts.
10) The Company''s current business activity has only one primary reportable segment i.e. paper. Hence, "Segment Reporting", under AS-17 is not applicable.
11) RELATED PARTY DISCLOSURES
As per Accounting Standard 18, all related parties have been identified by the management and relied upon by the auditors. There are no related parties where control exists.
i) Key Management Personnel:
Mr. N.K. Pasari
ii) Relative of Key Management Personnel:
Mr. B.N. Pasari
Mr. Naynesh Pasari
iii) Enterprise where Key Management Personnel/Relative of Key Managerial Personnel has significant influence:
Laxmi Traders Amer Hotels Ltd.
Gopala sales Pvt. Ltd. Bishwanath Industries Ltd.
Bishwanath Traders & Investments Ltd. Govinda Power & Products Pvt. Ltd.
SKCS Finvest Pvt. Ltd.
Mar 31, 2015
1. Rights, preferences and restrictions attached to Shares:
Equity Shares
The Company has one class of Equity Shares referred to as Equity Shares
having at par value of Rs. 10/- each. Each Shareholder is entitled to
one vote per share. In the event of liquidation, the equity-holders are
eligible to receive the remaining assets of the Company after
distribution of all preferential amounts, in proportion to their
shareholding.
Preference Shares
The Company has one class of Preference Share referred to as Preference
Shares redeemable at par value of Rs. 100 each. These shares carry a
fixed cummulative dividend of 4% per annum and a preferential right in
respect of dividend and capital over Equity Shareholders. The
Preference Shares are redeemable at par on or before March 31, 2017. In
view of arrear of dividend, preference shareholders are entitled to
vote on every resolution placed before the Company.
2. Details of Security and Terms of Repayment:
(a) Current maturities of long term borrowings are taken under current
liabilities (Refer note no. 9)
(b) Term Loans from Banks, under consortium arrangement having Bank of
India as Lead Bank, are secured by first pari - passu charge on all
movable and immovable property (other than current assets) of Kotputli
unit both present and future, second charge on the current assets of
the Company, collaterally secured by first pari-passu charges on the
block assets of Bahadurgarh Unit and by personal guarantee of two
Directors of the Company.
(c) Term Loans from banks are also collaterally secured by pledge of
48,20,400 (Previous Year 48,20,400) Equity Shares held by the Promoter
and promoter group.
(e) Unsecured Loans are repayable on March 31,2017. However, the
Company has the option to pay before maturity by giving prior notice of
30 days.
(f) The above loans carry varying rates of interest with the maximum
rate of interest going upto 12.45% (Previous Year 12.50%).
3. Details of Security:
(a) Cash Credit facilities from Banks under consortium arrangement
having Bank of India as Lead Bank, are secured by first pari - passu
charge on hypothecation of Inventories and receivables and all other
current assets of the Company, collaterally secured by second pari -
passu charge on the entire movable and immovable assets of the Company
both present and future and personal guarantee of two Directors of the
Company.
(b) Cash Credit facilities are also collaterally secured by pledge of
48,20,400 (Previous Year 48,20,400) Equity Shares held by Promoter and
promoter group.
(c) Maximum rate of interest was 11.45% per annum (Previous year 11.50%
per annum).
4. CONTINGENT LIABILITIES AND COMMITMENTS (to the extent not provided
for)
(Rs. in lacs)
Particulars 2014-2015 2013-2014
(I) Contingent Liabilities
(a) Claims against the Company not
acknowledged as debt;
(i) Central Excise duty and Service
Tax matters 4,065.50 4,002.91
(ii) Custom Duty matters 228.14 228.14
(iii) Water Cess 6.70 6.70
(iv) Sales Tax matters 259.98 248.13
* The contingent liabilities comprise
mainly amount related to show cause
notices issued by the Excise Department
in respect of coating of uncoated
paper amounting to 'manufacture' and
applicability of duty thereon. The
issue has been finally decided by the
Hon'ble Supreme Court in case of
Pitamber Coated Paper that the coating
of uncoated paper does not amounts
to manufacture. Accordingly, the Company
has made request to the Commisioner to
drop the show cause notices.
* The other contingent liabilities have
been disputed by the Company
before respective authorities on account
of classification, rates and
applicability.
* Based on the legal advices, the Company
is reasonably certain that the
outcome of these proceedings shall not
have a material impact on its
financial statements.
(b) Other money for which the Company
is contingently liable;
(i) Right of Recompense under CDR package 769.34 660.26
(ii) Arrears of Dividend on 4% Cummulative
Redeemable Preference Share 127.49 100.91
(including dividend distribution tax)
(II) Commitments
(i) Estimated amount of contracts remaining
to be executed on capital account 32.45 16.87
and not provided for
5. Disclosure under clause 32 of Listing Agreement is not applicable
since the Company does not have any subsidiary/ associates.
6. The accumulated losses of the Company had fully eroded the net
worth of the Company as on March 31,2013. During the financial year
2013-14 and 2014-15, the performance of the Company has improved and
the Company has earned profit but still the accumulated losses are
higher than the net worth of Company. The Company is in continuing
process of implementing various measures such as increasing the
production, optimising resources utilisation, improving operational
efficiencies and other cost control measures to improve the Company's
operating results and cash flows. With the improvement in business
conditions, the Company expects to perform better in the future. The
Company believes that these measures will result in substantial cash
flows. Accordingly, Company's financial statements have been prepared
on a going concern basis. In the opinion of the Board, going concern
assumption is appropriate for preparation and presentation of financial
statements.
7. The reference filed by the Company with Board for Industrial &
Financial Reconstruction based on negative net worth as on March 31,
2014 has been registered by the Board. The accumulated losses are still
higher than the net worth of the Company as on March 31,2015.
8. Corporate Debt Restructuring (CDR) Package was sanctioned to the
Company vide LOA dated August 17, 2009. The package was successfully
implemented by all the Bankers w.e.f. the cut off date i.e. April 01,
2009 as per terms and conditions set out in the Letter of Approval
(LOA). The CDR lenders have a right to recompense of their waivers &
sacrifices made as part of the CDR proposal. The recompense payable by
the Company is contingent on various factors, outcome of which
currently is materially uncertain and hence the proportionate amount
payable as recompense has been treated as contingent liability.
9. During the year, the Company has revised the useful life of fixed
assets as prescribed in Schedule II to the Companies Act, 2013.
Accordingly, depreciation of the year is lower is by Rs. 180.39 lacs.
Further, an amount of Rs. 28.83 lacs (net of deferred tax) on account
of assets whose useful life is already exhausted on April 01, 2014 has
been adjusted with Reserves & Surplus.
10. Based on the information available with the management regarding
status of suppliers under Micro, Small & Medium enterprises development
Act, 2006, there is no due to the supplier as on 31st March, 2015.
Further, there is no interest paid/ payable to the suppliers.
11. The debit / credit balances of Trade Payables, Trade Receivables
and Short / Long Term Loans & Advances are subject to reconciliation
/confirmation, although confirmations have been sent after the close of
the year. In the opinion of the management, there shall be no material
impact on the financial statements of any adjustments, if any, arising
on such confirmation /reconciliation.
12. Net increase/decrease in excise duty liability on closing stock of
finished goods as at year end has been shown as "Excise Duty on Stock
(Net)" in note no. 27 of Notes to the financial statements
13. In the opinion of the management, no liability towards Income Tax
is contemplated and hence no provision has been made in the books of
account for Income Tax.
14. The Company's current business activity has only one primary
reportable segment i.e. paper. Hence, "Segment Reporting", under AS-17
is not applicable.
15. RELATED PARTY DISCLOSURES
As per Accounting Standard 18, all related parties have been identified
by the management and relied upon by the auditors. There are no related
parties where control exists.
i) Key Management Personnel:
Mr. N.K. Pasari
ii) Relative of Key Management Personnel Mr. Naynesh Pasari
iii) Enterprise where Key Management Personnel/Relative of Key
Managerial Personnel has significant influence:
Laxmi Traders Amer Hotels Ltd.
Gopala sales Pvt. Ltd. Bishwanath Industries Ltd.
Bishwanath Traders & Investments Ltd. Govinda Power & Products
Pvt. Ltd.
SKCS Finvest Pvt. Ltd.
16. Comparative corresponding figures for the previous year have been
regrouped and/or re-arranged wherever considered necessary.
Mar 31, 2014
1) The accumulated losses of the Company had fully eroded the net
worth of the Company as on March 31, 2013. During the financial year
2013-14, the performance of the Company has improved a lot and the
Company has earned profit but still the accumulated losses are higher
than the net worth of Company. The Company is in continuing process of
implementing various measures such as increasing the production,
optimising resources utilisation, improving operational efficiencies
and other cost control measures to improve the Company''s operating
results and cash flows. With the improvement in business conditions,
the Company expects to perform better in the future. The Company
believes that these measures will result in substantial cash flows.
Accordingly, Company''s financial statements have been prepared on a
going concern basis. In the opinion of the Board, going concern
assumption is appropriate for preparation and presentation of financial
statements.
2) The reference filed by the Company with Board for Industrial &
Financial Reconstruction based on negative net worth as on March 31,
2013 has been rejected by the Board keeping in view of the profits
during the year and expectation of positive net worth at the earliest.
Further as on March 31, 2014, the accumulated losses are still higher
than the net worth of the Company and hence, necessary reference will
be made again to the Board for Industrial & Financial Reconstruction
within the prescribed time.
3) Corporate Debt Restructuring (CDR) Package was sanctioned to the
Company vide LOA dated August 17, 2009. The package was successfully
implemented by all the Bankers w.e.f. the cut off date i.e. April 1,
2009 as per terms and conditions set out in the Letter of
Approval(LOA). The CDR lenders have a right to recompense of their
waivers & sacrifices made as part of the CDR proposal. The recompense
payable by the Company is contingent on various factors, outcome of
which currently is materially uncertain and hence the proportionate
amount payable as recompense has been treated as contingent liability.
4) Based on the information available with the management regarding
status of suppliers under Micro, Small & Medium enterprises development
Act, 2006, there is no due to the supplier as on March 31, 2014.
Further, there is no interest paid/ payable to the suppliers.
5) The debit / credit balances of Trade Payables, Trade Receivables
and Short / Long Term Loans & Advances are subject to reconciliation
/confirmation, although confirmations have been sent after the close of
the year. In the opinion of the management, there shall be no material
impact on the financial statements of any adjustments, if any, arising
on such confirmation /reconciliation.
6) Excise duty has been deducted from gross sales/revenue from
operations on the face of the statement of Profit & Loss and represents
amount recovered from the customers. Net increase/decrease in excise
duty liability on closing stock of finished goods as at year end has
been shown under the head "Excise Duty on Stock (Net)" in note no. 27
of Notes to the financial statements.
7) In the opinion of the management, no liability towards Income Tax
is contemplated and hence no provision has been made in the books of
account for Income Tax.
8) The Company''s current business activity has only one primary
reportable segment viz. Paper. Hence, "Segment Reporting", under AS-17
is not applicable. The Secondary segment is also not relevant as there
is no exports sale during this year.
9) RELATED PARTY DISCLOSURES
As per Accounting Standard 18, all related parties have been identified
by the management and relied upon by the auditors. There are no related
parties where control exists.
i) Key Management Personnel:
Mr. N. K. Pasari- Managing Director
ii) Enterprise where Key Management Personnel/Relative of Key
Managerial Personnel has significant influence: Laxmi Traders Amer
Hotels Ltd.
Gopala sales Pvt. Ltd. Bishwanath Industries Ltd.
Bishwanath Traders &
Investments Ltd. Govinda Power & Products Pvt.
Ltd.
iii) Details of transactions with the related parties.
10) Comparative corresponding figures for the previous year have been
regrouped and/or re-arranged wherever considered necessary.
Mar 31, 2013
1.1) The accumulated losses of the Company have fully eroded the net
worth of the Company.However, the Company has been actively
implemanting various measures such as increasing the production,
optimising resources utilisation, improving operational efficiencies
and other cost control measures to improve the Company''s operating
results and cash flows. With the improvement in business conditions,
the Company expects to perform better in the future. The Company
believes that these measures will result in substantial cash flows.
Accordingly, Company''s financial statements have been prepared on a
going concern basis. In the opinion of the Board, going concern
assumption is appropriate for preparation and presentation of financial
statements.
1.2) Based on the information available with the management regarding
status of suppliers under Micro, Small & Medium enterprises development
Act, 2006, there is no due to the supplier as on 31st March, 2013.
Further, there is no interest paid/ payable to the suppliers.
1.3) The debit / credit balances of Trade Payables, Trade Receivables
and Short / Long Term Loans & Advances are subject to reconciliation
/confirmation, although confirmations have been sent after the close of
the year. In the opinion of the management, there shall be no material
impact on the financial statements of any adjustments, if any, arising
on such confirmation /reconciliation.
1.4) The Company''s current business activity has only one primary
reportable segment viz. Paper. Hence, "Segment Reporting", under AS-17
is not applicable. The Secondary segment is also not relevant as
exports sale is insignificant.
1.5) RELATED PARTY DISCLOSURES
As per Accounting Standard 18, all related parties have been identified
by the management and relied upon by the auditors. There are no related
parties where control exists.
i) Key Management Personnel:
Mr. N.K. Pasari- Managing Director
ii) Enterprise where Key Management Personnel/Relative of Key
Managerial Personnel has significant influence:
Laxmi Traders Amer Hotels Ltd.
Gopala sales Pvt. Ltd. Bishwanath Industries Ltd.
Bishwanath Traders & Investments Ltd. Govinda Power & Products Pvt.
Ltd.
Mar 31, 2012
1.1) Hitherto leasehold land was shown at cost and no amortisation in
respect of premium paid was done in the statement of Profit &Loss .
However, from the current financial year, the Company has amortised
premium paid w.e.f. the date of acquisition. Total depreciation
includes lease amortisation amounting to Rs. 1.77 lacs for current year
and Rs. 15.78 lacs for period upto 31.03.2011.
1.2) CONTINGENT LIABILITIES NOT PROVIDED FOR: (Rs. in lacs)
Particulars 2011-2012 2010-2011
a) (i) Central Excise duty and Service
Tax matters 3,705.95 3703.22
(ii) Custom Duty matters 249.97 228.14
(iii) Water Cess 4.92 3.99
(iv) Sales Tax matters 213.83 184.65
b) Arrear of Dividend on 4% Cumulative
Redeemable Preference Share 53.80 30.55
(including dividend distribution tax)
c) Capital Commitments 36.38 4.22
1.3) The Company has not received any memorandum (as required to be
filed by the suppliers with the notified authority under Micro, Small &
Medium enterprises development Act, 2006) claiming their status as
micro, small or medium enterprises. Consequently, the amount including
interest, if any, paid/payable to the parties during the year is Nil.
1.4) The Company had created deferred tax assets upto March 31, 2011
and was virtual certain based on business model, future business plans
and profitability projections. However, during the current year, the
Company has considered deferred tax assets only to the extent of
deferred tax liability arises on tax impact of differential
depreciation.
1.5) The debit / credit balances of Trade Payables, Trade Receivables
and Short / Long Term Loans & Advances are subject to reconciliation
/confirmation, although confirmations have been sent after the close of
the year. In the opinion of the management, there shall be no material
impact on the financial statements of any adjustments, if any, arising
on such confirmation /reconciliation.
1.6) The Company's current business activity has only one primary
reportable segment viz. paper. Hence, "Segment Reporting", under AS-17
is not applicable. The Secondary segment is also not relevant as
exports sale is insignificant.
1.7) RELATED PARTY DISCLOSURES UNDER ACCOUNTING STANDARD (AS) 18:
All related parties have been identified by the Management and relied
upon by the auditors. There are no related parties where control
exists.
i) Key Management Personnel:
Mr. N.K. Pasari- Managing Director
ii) Enterprise where Key Management Personnel/Relative of Key
Managerial Personnel has significant influence: Laxmi Traders Gopala
sales Pvt. Ltd. Amer Hotels Ltd.
Bishwanath Traders & Investments Ltd. Bishwanath Industries Ltd.
iii) Details of transactions with the related parties.
1.8) During the year ended March 31, 2012, the revised Schedule-VI
notified under the Companies Act,1956 has become applicable to the
Company for preparation and presentation of its Financial Statements.
Accordingly, the Company has reclassified, regrouped and rearranged the
previous year figures to make them comparable with current year's
figures.
Mar 31, 2010
I. Contingent Liabilities not provided for:
(a) Guarantees given by the banks on behalf of the Company Rs. 10,677
thousands (Rs. 10,196thousands).
(b) letter of Credit issued by the banks on behalf of the Company Rs,
4,392 thousands (Rs, 28,724 thousands).
(c.) Claims not acknowledged as debts by the Company to the extent
ascertainable Rs. 1,958 thousands (Rs. 1,958 thousands).
(d) Arrears of 4% Cumulative Redeemable Preference Shares dividend
(including dividend distribution tax) of Rs, 731 thousands (Rs. NIL),
(e) Estimated amount of contracts remaining to be executed on capita)
commitment (net of advance} Rs,15,665 thousands (Rs.25,754 thousands),
(f) The Company is in receipl of show cause notices for Rs,4,06,861
thousands (Rs. thousands) from the Central Excise & Custom, DGFX
Service Tax department and other authorises. Replies to show cause
notices have been submitted and adjudication is. pending with the
department.
(g) The Company has deposited Rs. 25,000 thousands in the year
2005-2006 under protest with the Custom 1 Department, Jaipur,
(Rajasthan) and the matter Is sub-judice. 2. The Company has
accounted for deferred tax assets of Rs. 44,057 thousands (Rs, 26,098
thousands) and is confident that subsequent realisation of the deferred
tax assets created is virtually certain in the mar future based on
existing business model, future business plans of the Company and its
profitability projections.
Further break-op of deferred tax assets (liabilities) is as under:-
2. The Company has not received any memorandum as required to be tiled
by the suppliers with the notified authority under Micro, Small &
Medium enterprises development Act, 2006) claiming their status as.
micro, small or medium enterprises. Consequent!}, the amount
paid/payable to the parties during the year is nil.
3. During the year, the Company has been sanctioned a Restructuring
Package by Corporate Debl Restruduring Cell vide LOA No. CDR(ABP)
No.605/2009-10 dated 17,08-2009 under the CDR Mechanism, for
restructuring of the existing financial assistance and sanction of
additional finance to the Company. The
COR Package has bee implemented w.e.f. cut off date i.e 1st April 2009
by all the Bankers in the manner and as per terms .and conditions set
out in the Latter of Approval (LOA). The Bankers will have the right to
reverse the waiveers/sacrifices in case of events of default as setout
in LOA. The COR proposal includes reschedulement of existing Term bans,
sanrlion of new term loans, additional working capital finance,
reduction in interest rates, carving out of working tapilal limits and
funding of inreest. As per terms & conditions of CDR packagc,
48,20.400l equity shares held by the Promoters of the Company have been
pledged with the Bankers.
4. The Company has issued 5,00.000 4% Cumtskitive Redeemable
Preference Shares, in cash, of Rs, 100/- each amounting Rs 50,000
thousands during the year to all the Companys Banker as per CDR
Package.
5. The debit/credit balances of Sundry Creditors. Sundry Debtors and
Loans & Advances are subject to recimriliatkm/confimation, although
confimations have been sent after the close of the year In the opinion
of the management, there shall be no material impact on the financial
stalements of any adjustments, if any, arising on such conrinmation
/reconciliation.
6, The Companys current business activity has only one primary
reportable segment viz. paper. Heme "Segment Repotting", under AS -17
is not required. The Secondary segment is also not relevant as exports
sale is insignificant,
7, During the year, modification/renovation of the keshwana unit was
done by the Company which has resulted into into increase in installed
capacity from 30,000 TPA to 36,000 TPA.
8 Information pursuant to the provisions of paragraph 3.4C &4D of
part-II of Schedule VI of the Companies Act, 195. Quantitative other
information regarding:
9, Earning Per Share
The Company reports basic. and diluted earnings per equity share in
accordance with Accounting Standard 20 "Earmings per share". Busk
/Diluted earnings per share computed by dividing net profit lax by the
weighted average number of equity ahares outstanding during the year.
10. Related Party Disclosures under At counting Standard (AS) 18, All
related parties have been identified by the Management and relied upon
by the auditors There are no related parties where control exists.
i)Key Management Personnel;
Mr. N.K. Pasari - Managing Director
ii) Relative of Key Managerial Personnel:
Mr. Naynesh Pasari - Son of Managing Director
11. figures in brackel represens previous year figures, 18.Comparative
comesponding figures for the previous year have been regrouped and or
sharrangged wherever considered necessary
12. All the figures are rounded off to the nearest thousands.
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