1. Estimated amount of Contracts remaining to be executed on capital
account & not provided for, net of advances Nil [Rs. 812.54 lacss]
2. Contingent Liability not provided for:
a. Claims against the Comp. not acknowledged as debt:
i. Excise duty Rs. 1.29 lacs [Rs. 2.54 lacss]
ii. Trade Tax, Appeals pending with Honble High Court, Allahabad Rs.
1.64 lacs [Rs. 14.18 lacss]
iii. Trade Tax, Appeals pending with Tribunal/ Jt. Commissioner,
Appeals. Rs. 33.17 lacs [Rs. 2.44 lacss]
iv. Others Rs. 5.50 lacs [Rs. 7.80 lacss]
b. Custom Duty in respect of future export obligation in accordance
with Exim Policy Rs. 69.92 lacs [Rs. 69.92 lacss]
c. Guarantee given by Banks Rs. 42.58 lacs [Rs. 54.34 lacss]
d. Loss on Derivative [Structured USD/CHF options] Rs. 120.52 lacs [
Nil s]
Above claims are likely to be decided in favour of company, hence
not provided for.
3. In the opinion of Board & to the best of their knowledge and
belief the value on realisation of current assets, loans and
advances, if realised, in the ordinary course of business would not be
less than the amount at which they are stated in the Balance Sheet. The
provisions for all known liabilities are adequate & not in excess of
amount considered reasonably necessary.
4. Confirmation of balances with sundry debtors / creditors, loans and
advances & other parties have not been received in few cases.
5. Disclosure in terms of AS 28
Recoverable amount of assets or the recoverable amount of cash
generating unit to which the asset belongs is not less than the
carrying amount; hence no provision is required on Acc. of
impairment of assets as on the date of Balance Sheet.
6. Disclosure in terms of AS 29
The Comp. has recognised contingent liabilities as disclosed in Note
No. B-2 above & as such no provision is required to be made. No
provision was outstanding as at the beginning & at the end of the
period.
7. Disclosure in terms of Clause 32 of Listing Agreement
The Comp. has not granted any loan / advances in the nature of loan
as stipulated in Clause 32 of Listing Agreement with the Stock
Exchanges.
8. Income tax assessment has been completed upto the assessment year
2005-06.
9. Fixed deposits include Rs. 9,02,229/- [Rs. 16,38,233/-s], Interest
accrued but not due Rs. 104,199 [Rs. 131,291s] & other liabilities
include Rs. 1,35,761/- [Rs. 2,03,228/s] due to directors.
10. As the companys business activity falls within a single segment
viz. Paper, the disclosure requirements of Accounting Standard 17
'Segment Reporting' issued by Institute of Chartered Accountants of
India is not applicable.
11. Interest on term loan includes Rs. 1,20,698/- [Rs. 1,67,787/-s] paid
to Directors on fixed deposits.
12. Related parties disclosures as required under Accounting Standard
18 Related Parties Disclosure' issued by Institute of Chartered
Accountants of India are given as below:
a. List of related parties with whom transactions have taken place
during the period:
i. Key management personnel [Directorss]
Mr. G. Narayana, Mrs. Manjula Jhunjhunwala, Mr. Ved Krishna, Mr. G. N.
Gupta, Dr. P. Banerjee, Mr. R. N. Chakraborty, Mr. A. K. Gupta
[resigned w.e.f. 04.3.08s], Mr. Yash Krishna, Mrs. Sheetal Jhunjhunwala
Mr. Ramesh Narayan, Mr. Basant Kumar Khaitan & Mr. K.D. Pudumjee
[appointed w.e.f. 30.06.07s]
ii. Relatives of Key management personnel
Mr. V. D. Jhunjhunwala, Mrs. Shailja Krishna, Mrs. Rita Banerjee, Mr.
Indroneel Banerjee, Mr. D. B. Banerjee, Mrs. Chhaya Banerjee, Mrs. Rupa
Chakraborty, Ms. Charu Chakraborty, Ms. Manoshi Chakraborty, Mrs. Manju
Gupta, Master Mayank Gupta, Ms. Deepali Gupta, & Mr. Rajiv Kumar
Gupta.
iii. Entities and Associates
Megha Agro Products Limited, Sargam Exim Private Limited, M/s Jingle
Bell Nursery School Society & M/s K. K. Charitable Foundation
13. The Comp. has initiated the process of obtaining confirmation
from Suppliers regarding their registration [filing of Memorandums]
under the Micro, Small & Medium Enterprises Development Act, 2006.
But in the absence of necessary confirmation from Suppliers, the
information required under the said Act couldn't be compiled and
disclosed.
14. The Comp. has receive capital subsidy amounting to Rs. 100.00
Lacs from the Government of India, Ministry of New and Renewable Energy
on reimbursement basis towards 6 MW Biomass Co-generation Power Plant'
for captive consumption installed during the period. The same has been
deducted from the cost of respective assets.
15. The Comp. has disputed a Derivative transaction [Structured
USD/CHF Options] entered into with ICICI Bank limited Accordingly, Loss of
Rs. 55.84 Lacs on Acc. of unwinding charges [partial unwindings], Rs.
64.12 Lacs on Acc. of Mark to Market valuation of outstanding
exposure & Rs. 0.66 Lacs on interest accrued on above; aggregating to
Rs. 120.62 Lacs has not been provided. On the basis of legal opinion no
provision has been considered necessary by management. However the
same has been disclosed as contingent liability in Note no. B-2[ds]
above.
16. The Comp. has installed a 6 MW Biomass Co-generation Power
Plant for captive consumption [the projects]. The project has already
been registered with UNFCCC [The United Nations Framework Convention on
Climate Changes] on 01.04.07. The project is under CDM [Clean
Development Mechanisms] verification & final report is awaited. The
company has entered into an Agreement [Emission Reduction Purchase
Agreements] with the Belgian State for sale of CERs [Certified Emission
Reductionss] generated on Acc. of GHG [Green House Gassess] Emission
Reduction. In view of forgoing a sum of Rs. 118.07 Lacs has been
recognised as income towards CERs accrued for period ended 31st
march, 2008.
17. Sale of Paper Broke Rs. 10.42 lacs [ Nil s] & sale of Pulp Rs.
7.76 lacs [ Nil s] has been included in Miscellaneous Income disclosed
in Schedule 13, Other Income.
18. Sundry Debtors include Rs. 5.54 lacs, which are old and/or the
matter is under dispute / litigation. Efforts are being made for
recovery; hence no provision for bad & doubtful debts has been
considered necessary.
19. During the period Comp. has issued 19,00,000 Equity Shares of Rs.
10/- each at a premium of Rs. 1/- on conversion of Warrants alloted on
preferential basis as per the provisions of Securities and Exchange
Board of India [Disclosure & Investor Protections] Guidelines, 2000. A
sum of Rs. 232.10 lacs [including Rs. 23.10 lacs warrant moneys] was
raised through the aforesaid preferential issue & the entire proceeds
has been utilized for project & augment of working capital
requirements [as specified in the object of issues].
20. Figures in bracket pertain to previous period & have been
regrouped / rearranged wherever necessary.
21. Figures for current period are for fifteen months & therefore
are not comparable with the figures of previous year.
22. The Balance Sheet Abstract & Companys general business profile
as required by Part IV of Schedule VI to the Companies Act, 1956 are
given in the annexure attached.
