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The Andhra Pradesh Paper Mills Limitedwww.andhrapaper.com

Corporate Office:

501 - 509, Swapnalok Complex, 5th Floor92/93, S.D. Road, Secunderabad - 500 003, India

45th Annual Report 2008-2009

The Andhra Pradesh Paper Mills Limited

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Forward looking statements

In this Annual Report we have disclosed forward looking information to enable investors to comprehend

our prospects and take informed investment decisions. This report and other statements - written and

oral - that we periodically make, contain forward looking statements that set out anticipated results

based on the management’s plans and assumptions. We have tried wherever possible to identify such

statements by using words such as ‘anticipate’, ‘estimate’, ‘expects’, ‘projects’, ‘intends’, ‘plans’, ‘believes’,

and words of similar substance in connection with any discussion of future performance.

We cannot guarantee that these forward looking statements will be realised, although we believe we

have been prudent in assumptions. The achievement of results is subject to risks, uncertainties and

even inaccurate assumptions. Should known or unknown risks or uncertainties materialise, or should

underlying assumptions prove inaccurate, actual results could vary materially from those anticipated,

estimated or projected. Readers should bear this in mind.

We undertake no obligation to publicly update any forward looking statements, whether as a result of

new information, future events or otherwise.

Concept, Research, Design & ProductionCAPRICORN ASSOCIATES

Hyderabad

2MESSAGE FROMTHE CHAIRMAN

Powering theFuture

4FROM THE DESK OFTHE MANAGINGDIRECTOR

Review ofOperations

6

Powering theFarmers

8

Working forcleanenvironment

Powering the FutureAPPM is one of the most cost effective producerof quality paper. The Company not only reducedthe use of fossil fuel, but has also startedgenerating and selling power to the state gridfrom June 2009.

The cover captures the main activities of theoperations with an underlying concern for power.

11

The teamdoes it

12

R&D -the linkbetweenproduct andcustomer

14

Powering thegrowthdrivers

15

ManagementDiscussion &Analysis

27

Five Years ata Glance

28

Board ofDirectors

29

CorporateInformation

30

Directors'Report

36

Report onCorporateGovernance

45

Auditors'Report

48

BalanceSheet

49

Profit andLoss Account

C O N T E N T S

70

Cash FlowStatement

72

Notice ofAnnualGeneralMeeting

Pleasure in the job,puts perfection in the work.

– Aristotle



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ANNUAL REPORT 2008-091

APPM faced challenging times during the year. The pressures

in the economy were felt by us just as much as all the majors in

the paper industry.

This is not the first time that we have been tested by market

dynamics, and on every occasion, we have emerged stronger. We

have always used the challenges to convert them into

opportunities.

As in the past, we revisited our internals and gained by improving

our operating processes to enhance efficiencies and reduce costs,

widened our market presence, strengthened the organization and

powered our way to the future.

APPM of today is much better than what it was yesterday and

with its improved product mix and quality is cost efficient and

more profitable. We have worked hard for our tomorrow.

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ANNUAL REPORT 2008-09 2

Powering the FutureMESSAGE FROM THE CHAIRMAN

The paper industry often mirrors the economy with

consumption dependent on the needs and sentiment in user

industries. In 2008-09, the global recessionary trends

impacted all our consumers and the effects were felt by all

the majors in the paper industry.

The industry saw decline in demand growth, increase in

inventories, softening of prices and pressure on margins.

As cash flows dried up, interest rates climbed higher and

when money market tightened, the volumes contracted. This

led to further decrease in consumption and decline in prices.

The cascading effect accentuated the pressures for the paper

industry.

Given this backdrop, I am glad to say that we at APPM did

well. We managed the uncertainties and faced the situation

effectively because we were organised better. Our Mill

Development Plan helped us to weather the storm enabling

us to lower consumption of raw material, save power costs

and reduce usage of chemicals. We also stayed with our

core values and offered improved product quality. As seen

from our performance results. We succeeded in not only

increasing our revenues but also our operating and net profit.

We are much stronger because of our technology, systems

and processes, people commitment and quality of products.

Indeed, APPM was tested during the year but the team gained

confidence in its efforts to ensure continued success. I am

convinced that the experience will create a positive leverage

when the economy turns for the better.

Looking ahead, the strategic goal at APPM is to enhance

the value of the Company through profitable growth

generated by targeted capital expenditure, investment in

state of art technologies, continuous performance

improvement and excellent management of human resources.

The Company has identified four ways of improving its

profits:

Expand products in existing segments;

Develop new products and markets, including direct

sales to consumers;

Pursue selected growth opportunities in value added

activities; and

Improve overall manufacturing productivity and

efficiency.

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Our long term objective is to be one of the most admired

and profitable integrated paper companies in the country.

We shall accomplish this by consistently improving our

market share and offering a wide range of products supported

by reliable customer service. I am sure that our talented

and trained people and their performance driven culture

will secure APPM's profitable growth.

In a few months, we shall commission Paper Machine No.6

at Unit:APPM adding approximately 38.5% to our paper

making capacity. At the same time, I am conscious that the

global economy is as yet under pressure and it would possibly

take a few more months for stability and growth. We are

fortunate to have a team of winners that know how to

generate demand by finding strategic/ game-changing

opportunities to take market share away from competitors.

Our long term belief in the future and confidence in APPM's

products and processes remain high. We shall continue to

offer what the customers want and emerge as the first choice

in our addressable markets. We shall reduce the risks in our

operations and shall strive to differentiate ourselves from

our competition. We will convert uncertainties into

opportunities primarily by reducing cost of production to

one of the lowest in the country; enter into niche markets

and produce and market larger volumes of paper thereby

increasing our absolute profit levels. I am confident that

these initiatives will help improve earnings per share and

increase total shareholder wealth.

APPM has led the way within the Indian paper industry with

its various initiatives and championing environmental issues.

It is essential that our industrial and commercial development

must be consistent with the protection of the environment.

For us, sustainability is about meeting today's needs with

natural resources that are renewable, reusable and recyclable.

For several years, we have worked to minimise environmental

impact by measures such as farm forestry, efficient use of

energy and water, waste recycling, monitoring of spillages

and gas emissions. Our investments have been as much to

improve productivity of wood, energy and water as it has

been to increase quantity and enhance quality of paper

produced.

We were one of the pioneers within the Indian paper industry

when we distributed seedlings to farmers and counseled

them to plant trees in dry and wastelands. We were also the

leaders in introducing elemental chlorine free writing and

printing paper in the country.

I am proud of my team and am confident that we shall

continue to take meaningful strides and power ahead by

adding to societal values as much as we shall strive to be

an admired integrated paper company that works for all its

stakeholders.

With warm regards

L. N. Bangur

SalesRs. Crore

2007-08

628.24

2008-09

657.33

PBDT1

Rs. CroreProfit after tax

Rs. Crore

2007-08

64.97

2008-09

74.88

1Proft before Depreciation and Tax

2007-08

16.54

2008-09

18.95


Review of OperationsFROM THE DESK OF THE MANAGING DIRECTOR

Looking back at the financial year under review, it was a

tough and challenging period but also one that had several

positives. Despite the difficult external environment, we

did well in areas where we have better control.

We stabilized our MDP and started seeing operational gains.

We also brought down our overheads as well as our variable

costs, enhanced our value proposition for our products and

services and simplified our supply chain.

In the first half of the year, we gained from a buoyant market

and firm selling prices. In the same period, as part of the

MDP, we managed to reduce variable costs and improved

operating performance. We experienced lower off-take as

well as subdued selling prices during the latter half of the

year. The combined effect of weak demand and subdued

prices were offset by the significant improvements in

operating performance which essentially led to a higher

operating profit.

Our operating profit (EBIDTA) for the year under review was

higher at Rs.125.37 crore compared to Rs.80.33 crore in

2007-08, an increase of 56%. The Profit after Tax climbed

by 14.5% at Rs.18.95 crore as against Rs.16.54 crore in

2007-08. The Earning per Share was Rs.7.37 in the year

under review as compared to Rs.6.44 in 2007-08.

The gratifying part of the accomplishment was that the

improvements made in the plant processes and operations

are sustainable in the future and would keep the cost of

operations lower for every ton of paper produced. We as a

team are proud that we have made improvement in yields

from the main raw material - casuarina and subabul wood

while enhancing the brightness of pulp. Similarly, we have

reduced the use of chemicals and increased the recovery

efficiency thereby lowering the need for fossil fuel.

At APPM, we increased our production capacity and lowered

our cost of production. Our growth plans are integrated with

process and cost efficiencies to ensure long term

competitiveness and the ability to generate stable cash flow.

We shall commission Paper Machine No.6 in the last quarter

of the financial year 2009-10. When it goes on stream in


early 2010, we would increase our overall pulp output thus,

reducing our marginal costs and adding to profitability per

tonne of product.

The Company strives to be a sustainable and environment

friendly integrated paper company, renowned for its

operational excellence and superior products. We have the

competence and know-how and a strong brand equity that

helps gain market share. In our product lines, we shall strive

to be the customers' first choice.

The in-house strengths include capabilities that ensure

continuous product development and competence to better

production processes. We have done considerable work to

conserve natural resources, optimise use of raw materials,

recycle wherever possible and reduce the emissions and

pollutants. We shall continue to demonstrate further

efficiencies on all such identified parameters.

While our production processes and marketing abilities will

outpace the anticipated challenges, our most important

target for the next few years is improvement in profitability.

In the coming years, we shall remain committed to our target

of achieving higher volume sales, enhanced market share,

lower variable costs, improved profitability and a strong

balance sheet. We shall strengthen our ability to achieve

higher volume by generating higher cash and deleveraging

our business. We will ensure that our margins improve faster

than increase in revenues as well as cost increases. Our

focus will be to ensure that return on capital would be higher

than cost of funds.

I am privileged to work with this vibrant team which has

the ability to cope with the present and future challenges

and has aligned itself with the right mix of strategy, tactics

and execution to effectively position APPM for the up-tick

in the economy. I am grateful to all the 2,550 colleagues

who have made the Company much stronger and resilient.

With warm regards

M.K. Tara

Earnings per ShareRs.

2007-08

6.44

2008-09

7.37

Net worthRs. Crore

Net Fixed AssetsRs. Crore

2007-08

416.43

2008-09

417.98

2007-08

863.90

2008-09

903.33


Powering the FarmersAPPM encourages farmers to manage plantations

responsibly. We have a team that counsels and guides the

farmers to adopt environmentally appropriate plantation

management practices for achieving higher productivity as well

as maintaining the ecological equilibrium. We subscribe to

the belief that protection of the environment is integral to

the business. We want to ensure a healthy environment for

the coming generations. In fact, APPM is the only integrated

paper manufacturer in India that plants twice as many trees as

it harvests. We believe that whatever we leave behind for

environment amelioration is as important as what we consume.

Such socially beneficial farm forestry programs provide long

term benefits to both the grower as well as the society at

large and provides them with a strong incentive for

sustainable fiber resource management.

Farmer economics is important to APPM. The Company pays

best value for the wood it buys and always encourages

growers to adopt economically viable plantation management

systems which ensure high levels of profitability.

One of the key initiatives of the farm forestry team at APPM

is to convince farmers for greening more and more dry waste/

marginal lands. The Company maintains nurseries and

distributes saplings at nominal cost to growers. Our research

on clonal development has resulted in introduction of high

yielding, disease resistant clones suitable for a wide range

of agro-climatic conditions in inland and coastal areas.

During the year 2008-09, 95.20 million quality seedlings

were developed as against 94 million seedlings during the

2007 planting year. We brought an area of 14,000 hectares

under plantation as against 13,500 hectares in 2007.

Distribution of 95.20 million saplings to farmers included

1.68 million high yielding clonal saplings developed at state-

of-the-art nurseries of APPM.

Amongst the several benefits to all the stakeholders is the

fact that farmers growing pulpwood with normal seedlings

on their waste/marginal land find their returns almost equal

to the farmers growing other crops on their irrigated land.

More significantly, farmers have reported that their return

on investment per acre through plantation of clonal saplings

developed by APPM, has increased by more than double in

comparison to normal seedling pulpwood plantation.

Research and Development initiatives with low cost planting

techniques, quality planting material and high yielding, short

rotation clonal planting stock have enhanced raw material

availability spread over approximately 86,400 hectares. To-

date, our initiatives have directly benefited approximately

36,800 families and created employment resource pool of

approximately 43 million man-days.


The ongoing farm forestry activities focuses on agrarian

communities having small and marginal land holdings

because these holdings can be better utilized for plantations

with minimal investments by adopting low cost planting

techniques. Wasteland development was also geared up with

the introduction of site specific superior clones. The

introduction of a Casuarina hybrid has resulted in higher

yields thus ensuring availability of sustained raw material

for APPM and higher returns to farmers.

During the year, APPM improved its raw material mix with

higher consumption of Casuarinas and Subabul varieties.

This provided several down stream gains, such as:

Ensured procurement logistics due to plentiful

supplies;

A 10.5% savings in raw material cost due to a change

in raw material mix and lower transportation cost due

to proximity to sources;

Reduced cost of processing for pulping operation due

to lower consumption of chemicals; and

Improved brightness of pulp.

Research and Development (R&D) during the year also

focused on minimisation of plantation establishment

expenses with development of low cost quality saplings,

innovative silvicultural techniques and development of site-

specific disease resistant high yielding clones by macro

propagation techniques. The gains to the farmers have been

higher yields with minimal investment; increased

productivity per unit of area within a short rotation cycle

and demonstration of first hand information to farmers of

the benefits of clonal plantations under field conditions.

With an eye on the future, the present R&D activities attempt

to develop superior genotypes of Casuarina and Eucalyptus

through establishment of clonal seed orchard, hybridization,

screening for desirable quality and yield, testing of selected

genotype and their multiplication through micro propagation

and macro propagation. The gains to the farmer will be higher

productivity and the Company would benefit by access to

resources having quality strains.

Today, our pulp is based on a strong and flexible fibre that

combines properties such as high brightness and purity as

well as tear and tensile strength. The Company as always is

grateful to the farmers for raising the bar.

Farmer economics is

important to APPM. The

Company pays best value for

the wood it buys and always

encourages growers to

adopt economically viable

plantation management

systems which ensure high

levels of profitability.

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Working for clean environmentOur business starts with wood. By using water and energy,

we convert the same to pulp and subsequently into one of

the best uncoated writing and printing papers in the country.

We are conscious that we are dealing with some of the most

precious resources of nature and so we put all our efforts to

manage them responsibly. Most of the resources we utilise

in our processes are renewable and as a Company we always

strive to put back more than what we take.

At APPM, we believe that at all times we must meet the

social, ecological, and economic needs of the present

generation without in anyway compromising the growth

potential of future generations. Apart from our social and

ecological responsibility, we have a commercial interest in

ensuring that nature is preserved, renewed and protected.

We therefore make sure that all our investments,

manufacturing designs and processes are efficiently used

to help reduce our environmental footprint. Careful planning,

training of people, selection of appropriate raw materials

and internal processes have improved our environmental

performance, significantly decreased our emission load and

enhanced our operational reliability.

Our responsibility towards the environment starts with our

farm forestry efforts and we stimulate the same by

maintaining nurseries and distributing saplings to farmers

and encouraging them to plant two trees for every one that

is harvested.

Having brought the pulpwood to our production facility, we

utilize every portion of the same even lignin; the waste

product of the wood is used to generate energy.

Approximately, half the wood is converted into pulp and

the balance into energy.

We generate 91% of our energy needs from our manufacturing

process itself having upgraded our boilers with cogeneration

systems. Our state-of-art recovery boiler and electrostatic

precipitator have lowered particulate emissions and reduced

sulphur compound emissions significantly.

Our initiatives have improved combustion efficiencies and

temperature control as well as reduced the greenhouse gases.

Indeed, we have progressed to produce surplus power every

day since June 2009 and we sell the surplus to the state

electricity grid.


APPM has been taking energy efficiency measures in earlier

years as well by adopting technologies such as installation

of variable frequency drives, replacement of equipments and

optimisation of operations. These were monitored and

approved by UNFCCC (a body on environment created by

United Nations) and Certified Emission Reduction (CERs)

points were granted for the period June 2000 to December

2006. The CER points were received and the gains credited

to the Profit and Loss Account.

Another area of conservation is in the use of chemicals. In

2008-09, we recycled 95.69% of the chemicals required for

making pulp and paper. This is an improvement from 93.05%

achieved in the previous financial year. In the first quarter

of 2009-10, the chemical recovery efficiency has further

improved to 96%. Under our MDP program, we had already

eliminated elemental chlorine from our bleaching process

which helped reduce generation of dioxins and other

chlorinated organics.

We have significantly reduced the emissions of many air

pollutants and non-combustible gases, such as sulphur,

nitrogen oxides, carbon monoxide and particulates. Non-

condensable gases (NCG) containing odoriferous compounds

from the pulping process including mercaptans are burnt in

both the lime kilns and the recovery boiler to ensure cleaner

air for the mill surroundings.

We commissioned a new coal fired boiler with the latest

emission control equipments and managed to significantly

reduce the suspended particulate matter (SPM).

Conserving water is one of our major focus areas. Reducing

water consumption lowers the environmental load, improves

energy management and maximizes recovery of chemicals

and pigment substances dissolved in water. We have reduced

the amount of water required per tonne of product to

100.5 M3 per tonne in the year under review from 108 M3

per tonne in 2007-08. Our target for 2009-10 is to reduce it

further to 90 M3 per tonne of product.

During the financial year 2008-09, 27% of the water used

was recycled. Constant efforts improved it from 24.5%

accomplished in the financial year 2007-08. We have also

strived to improve water quality especially through the

reduction of biodegradable organic materials in waste water.

The dioxins in treated waste water have dropped to non-

detectable levels.

We are conscious that we are

dealing with some of the most

precious resources of nature and

so we put all our efforts to

manage them responsibly. Most

of the resources we utilise in our

processes are renewable and as

a Company we always strive to

put back more than what we take.


In our pulping process, sodium and sulphur compounds are

efficiently recovered and recycled. Since we have avoided

the use of elemental chlorine, Adsorbable Organic Halides

(AOX) has dropped to negligible/nil levels. Small quantities

of non-recoverable chemicals remaining in waste water are

treated at the effluent treatment plant within the mill. As a

routine, we reduce the volume of waste going into landfills.

For several years, APPM has taken care to keep its

performance much better and have always maintained its

waste materials and discharges well within the permitted

levels. For instance, AOX, BOD, COD and TSS discharged have

been consistently lower than the permitted levels of

pollution control authorities and concerted efforts are made

to ensure that we improve on every parameter regularly.

Our experience shows that conserving resources and reducing

pollution increases our efficiency and produces positive

returns for shareholders as well as for the environment. While

upgrading the manufacturing processes, we have continued

to meet customer demands for paper quality including

brightness. Going forward, we will stay focused to:

Reduce emissions further in the manufacturing process;

Replace fossil fuels with renewable biomass fuels;

Conserve energy and reduce greenhouse gases;

Ensure employees go home safely; and

Preserve and protect the environment and our

neighbourhood.

Over the years, we have revamped our various processes. Yet,

we are not complacent. While we have done a lot, a lot more

needs to be done. We believe that there cannot be a finish

line for our efforts in dealing with environment as well as

health and safety of our employees.

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The team does itAPPM strongly believes that human resource is the

only asset that appreciates every year. We have 2,550

dedicated and skilled employees who are key to our success.

They add to their knowledge base, skills and competence

every passing month, and we have kept pace with the latest

in technology to create one of the most professional

organisations in the industry.

Today, the technology in the Company is vastly different to

what the Company had access to three years ago. This has

upgraded the Company's business and earning potential and

has helped align our offering to the new demands of the

customer. The Company has transformed itself in a short

period and the team has built a platform to power the way

forward.

Our HR policies revolve around the following three

parameters:

☛ Respect for the individual;

☛ Providing a safe and healthy work place; and

☛ Compensation and benefits that recognise employee

contribution.

The policies foster a high performance culture wherein every

person has a professional challenge and is offered

responsibilities that demand the individual works to his

potential. Continuous training inputs and people

development have helped us keep the skill sets of our

employees contemporaneous.

Training inputs have covered diverse fields such as paper

technology, quality maintenance, materials and chemicals

handling, safety and accident prevention, OHSAS 18001:2007

system implementation, 5S Concepts, ERP activities,

performance management/appraisal etc.

Some of the training related statistics for the financial year

2008-09 are:

☛ Total number of participants at training programs: 5734

☛ Total training in man-days: 9946

☛ Average training per participant: 13.9 hours

The Company strives to create a positive and stimulating

work climate and supports a creative, open and motivating

working environment. Team work is promoted throughout

the organization across disciplines. We believe that our

employees would perform better than expected in a

challenging market and their experience of the recent past

would facilitate us to manage the pressures in the future.

There is a confidence to face the known pressures including

the need to market larger volumes of paper while improving

overall profitability. The challenges facing us are many but

our resource base has been strengthened to face the same

in the future.

Our HR policies foster a high

performance culture wherein

every person has a

professional challenge and is

offered responsibilities that

demand the individual works

to his potential.


R&D - the link between product and customer

Research and Development is integral to our business and

its main focus is developing products for end-users. Our

R&D activities centre on continual improvement of products

both for existing and new customers. Product improvements

are directed towards improving printability and optimizing

on other technical parameters within existing products.

During the year, our R&D team created niche products for

high end users in the copier and stationery segments. We

worked closely with some of the best names in the industry

- International Paper (IP), Hewlett Packard (HP), Staples -

to create products that are unique and which have high

demand in the market. APPM with the help of the latest

technology and knowhow successfully manufactured ColorLok

paper for HP.

We believe that application technology in copier and

stationery products is the key link between manufacturers

and the customer. We carried out practical tests with respect

to the same both in the lab as well as on the production

lines to enhance the same. Our service orientation is aligned

to offer practical and cost effective solutions to the

customers and thus would ensure high levels of customer

loyalty. Individuality of our solutions gives us a decisive

competitive edge.

With inputs from R&D, we made strategic changes in the

production process to guarantee cost efficiency and long

term competitiveness to our customers. Variable costs were

reduced both in the pulping and paper making processes

while improvements were made in final product quality.

Another objective of our R&D activities is minimising

customer complaints about our products with product

improvements. We have been earnest in enhancing quality

of product and have benefited by the comments and critiques

received from the customers.

Our R&D team focused on a few key initiatives in the past

year. A brief listing of the efforts and achievements of the

same is mentioned below:

☛ A new grade of printing paper called Andhra Super Print

with bulk properties that are higher than regular grades

was made and commercially scaled up. Andhra High

Brite Super grade paper suitable for diary printing was

similarly manufactured and commercially scaled up.

☛ In order to meet the stringent shade requirements of

publishers, new shades with pigment dyes were

successfully introduced.


Project IP (ColorLok)

During the year, APPM has signed a technical collaboration

agreement with M/s. International Paper (IP) to manufacture

copier paper with ColorLok technology. The ColorLok

technology is owned by Hewlett-Packard (HP). IP and HP

have an agreement to manufacture ColorLok paper in both

HP and IP brands.

A commercial run of HP office paper with ColorLok technology

was completed during the year and the outturn quality met

all the specifications of HP. Regular production is to

commence shortly as per market requirement.

Project ColourFreez

APPM with its in-house R&D efforts has developed a new

technology (ColourFreez) for improved inkjet performance

of copier papers by enhancing the print densities of both

black and color prints. Its technical superiority is evidenced

by faster drying of inkjet inks compared to ordinary copier

papers. ColourFreez is a unique technology developed by

APPM and is the intellectual property of APPM.

Production trials are planned to introduce high bright inkjet

and laser jet papers with ColourFreez technology in APPM's

exclusive brands.

☛ Identification of functional additives and plant trials

for cost reduction/quality improvement were also taken

up. Different additives were also tried in pulping to

reduce consumption of bleaching chemicals.

☛ To achieve cost reduction in paper making, alternates for

regularly used additives such as optical whitening agents,

sizing chemicals etc. were identified and tried out.

☛ Binary sizing in glazed varieties of white papers

(packing grades) and alkaline sizing for writing and

printing papers was adopted which helped us improve

brightness and whiteness of our paper grades.

☛ New coloured shades required for domestic and

international markets were developed and

manufactured.

☛ Alternate fibrous raw materials were evaluated and the

raw material mix was revised. This was a critical

breakthrough for the Company and it helped improve the

quality of pulp and paper and reduce manufacturing costs.

☛ Laboratory studies and plant trials for utilization of

different fibrous raw materials in pulp manufacturing

were conducted to enable reduction of the overall cost

of pulp and to observe impact on pulp quality.

With inputs from R&D, we made

strategic changes in the production

process to guarantee cost

efficiency and long term

competitiveness to our customers.

Variable costs were reduced both

in the pulping and paper making

processes while improvements

were made in final product quality.


As we begin the new financial year, we are conscious that

the economic environment has not improved appreciably.

APPM will not be immune to the impact of the pressures of

the market and sluggish consumer demand. Despite the

unfavorable environment, we believe that we will not only

endure, but will emerge as an even stronger company.

Our future will be a function of the strengths that we have

marshaled. As of now, whatever we planned to achieve is

underway and we are rapidly working towards completion

of the final phase of our MDP. When completed in January

2010, we would have additional paper making capacity of

67,000 tonnes. The full impact of the capacity would be felt

in the financial year 2010-11.

During the past three years, we have graduated from concepts

and planning to execution. The first phase of the Mill

Development Plan (MDP) was executed in time giving us

access to a state-of-art fibreline, world class recovery boiler

which was not only environment friendly but has today

enabled us to significantly reduce our consumption of fossil

fuels and several other emission and pollution control

technologies. Once the paper making capacity is augmented,

it will be a powerful growth driver for us.

Having installed possibly the best fibreline in the industry, we

will soon have a larger volume of writing and printing paper

to sell which would necessitate that we widen our marketing

geographies to improve our income streams. As such, we are

cost competitive but once our Paper Machine No. 6 goes on

stream at Unit:APPM, we would have unparalleled economies

of scale within the Indian paper industry. The economics of

APPM would change with the volume and quality that we offer,

as well as with the productivity and profitability of our business.

The combined effect of improvement in profitability per ton

as well as larger volume of business would make an

overwhelming impact on both the balance sheet as well as on

the profit and loss account.

APPM is working on several levers which when fully operated

would ensure that the APPM of tomorrow will be far better

in all aspects when compared to the APPM of yesterday.

.

Powering the growth drivers

The combined effect of

improvement in profitability

per ton as well as larger

volume of business would

make an overwhelming

impact on both the balance

sheet as well as on the profit

and loss account.


INDIAN PAPER INDUSTRY - BRIEF OVERVIEW

The Indian paper industry is more than 140 years old with

the first mill having been commissioned in 1867. Over the

years, in line with the improvement in the well-being of

people and rising literacy and aspiration levels, paper usage

has increased. Today almost every person uses paper in one

form or the other. The industry has responded to the growth

in demand and the installed capacity in India has risen from

0.137 million MT per annum in 1951 to 9.3 million MT in

2008. This includes capacity expansion of approximately 0.8

million MT during the past year.

Domestic production of paper and paperboards is estimated

to be 7.6 million MT and as per industry estimates, overall

paper consumption (including newsprint) has touched 8.86

million MT and per capita consumption stands at 8.3 kgs.

However, the momentum in paper usage has neither kept

pace with the growth in population, nor does it match the

global per capita consumption of 56 kgs.

While India has 15 per cent of the world population, it

consumes only 1.6 per cent of the world paper production.

The low consumption pattern remains both a challenge in

the short term as well as an opportunity in the long term to

tap the future aspirations requirements of the Indian society.

At present across the country, there are about 515 units

engaged in the manufacture of paper, paperboards and

newsprint. India is almost self-sufficient in the manufacture

of most varieties of paper and paperboards. Import, is

confined only to certain specialty papers and newsprint. A

substantial part of the raw material needs of the country is

met through the import of wood pulp and waste paper.

Paper manufacturers use a variety of raw materials like

hardwoods, bamboo, recycled fibre, bagasse, wheat straw

and rice straw. Approximately 30 per cent of paper

manufacturing units in India are based on chemical pulp, 39

per cent on recycled fibre and 31 per cent on agro-residues.

The geographical spreads of the industry as well as the paper

markets are mainly responsible for the regional balance of

production and consumption.

Most paper mills in India have been in existence for several

years and therefore, they use a wide spectrum of technologies

ranging from the oldest to the most modern.

Performance of the industry has also been constrained due

to high cost of production characterized by high raw material

and power costs. The industry needs large quantity of

pulpwood and water and often faces supply limitations for

both requirements. Furthermore, they are subject to very strict

environmental regulations.

Paper industry in India is highly fragmented. The sector is

dominated by small and medium sized units and the number of

mills with capacity of more than 50,000 MTPA is not more than

30. In products such as Newsprint, less than half a dozen mills

account for almost 90 per cent production in the country. In

recent times, the industry is striving to modernize its

manufacturing locations, improve productivity and build new

Management Discussion & Analysis


production capacities with the induction of Pulp and paper

machines with capabilities of producing more than 1,00,000 TPA.

Industry pressures have been managed better by forward

looking entrepreneurs. Large modern mills which are

environment conscious and are reasonably assured of raw

material supplies are presently able to expand capacities,

derive advantages of size, enhance production efficiencies,

improve productivity and quality and respond to the

challenges of the market. These units place premium on latest

technology and environmental standards and have derived

productivity gains which in turn have helped them climb up

the value chain both in terms of product and process

efficiencies.

The Union Government has completely delicensed the paper

industry with effect from 17th July, 1997. Entrepreneurs are

required to file an Industrial Entrepreneur Memorandum with

the Secretariat for Industrial Assistance for setting up a new

paper mill or substantial expansion of the existing mill in

permissible locations.

Paper industry has been granted the status of a priority sector

for foreign collaboration and foreign equity participation up

to 100 per cent and is entitled to receive automatic approval

from Reserve Bank of India. Several fiscal incentives have

also been provided particularly to those mills which are based

on non-conventional raw materials.

Estimated annual turnover of the industry is Rs.29,600 crore

approximately and its contribution to the exchequer is around

Rs.2,900 crore. The industry provides employment to more

than 1,20,000 people directly and to 3,40,000 indirectly.

In its latest report, CRISIL has categorized industrial papers

as the highest market segment which accounts for

approximately 41 per cent of the paper market; the Writing

and Printing (W&P) segment constitutes about 39 per cent;

Newsprint and specialty segments make up the balance 15

per cent and 5 per cent, respectively.

Demand for paper and paperboard closely follow the economic

growth of a country and have a positive co-relation to the

prevailing economic trends. In India, the demand drivers

and growth triggers have come from a combination of factors:

☛ the rising level of national income;

☛ the growing per capita income;

☛ rising aspiration levels of the people;

☛ increasing size of the population;

☛ increasing size of the service industry;

☛ spread of education and literacy throughout the country;

☛ government focus on education;

☛ introduction of computers in rural areas; and,

☛ higher level of industrial activity and corporate spending.

Historically, strong economic growth has been accompanied

by equally strong demand for paper. So far, the growth in

Indian paper industry has mirrored the growth in GDP which,

has grown on an average 8 per cent over the past few years.

During the past five years, while newsprint registered a

growth of 13 per cent, W&P, containerboard, carton board

and others registered growth of 7 per cent, 11 per cent and

9 per cent, respectively.


GLOBAL TRENDS

The global recessionary pressures have affected the paper

industry in India too. Economic slowdown across countries

has adversely affected the demand for paper, paperboards,

pulp and waste paper across the world.

According to present estimates, global growth in the paper

industry is likely to witness CAGR of 2 per cent up to 2012.

To put it in perspective, this is half of what was achieved

during the period 2002-2007.

Growth in the Asian region and other developing countries

is expected to far outweigh the sluggishness in more matured

markets of North America, Europe and Japan. The

consumption pattern is undergoing a change partly due to

the recessionary conditions in developed countries and partly

due to demand pull in the Asian region. Asia's consumption

is estimated to grow to 45 per cent of the global demand by

2012 as compared to 34 per cent in 2002. In contrast, the

share of North America is likely to decline to 21 per cent by

2012 from a peak of 30 per cent achieved in 2002.

Aggregate global demand for paper and paperboard is

estimated to be approximately 427 million MT in 2012 from

the present 403 million MT. While the demand is estimated

to climb by 24 million MT, capacity increase of 20 million MT

is expected primarily in Asia. The larger proportion of such

additions is expected in the higher growth economies of

China and India. The aggregate global capacity is estimated

to be 448 million MT by 2012.

This trend of slower growth in world wide demand

accompanied by capacity expansion is expected to put

pressures on price of paper and paperboards especially in

the developed countries. Competitive pressures will reduce

capacity utilisation to around 85 per cent in the next two

years from a range of 89 to 92 per cent before it starts to

climb again from 2010.

Demand for pulp and waste paper is also expected to increase

on a slower growth trajectory. Pulp prices had fallen to their

lowest levels ever seen in March 2009 but have strengthened

in the first quarter of 2009. It is estimated that going forward,

the prices will continue to remain under pressure in 2009

and 2010. Waste paper prices also having dropped to very

low levels have increased marginally in the first half of 2009

and would face similar price pressures in 2010.

CHALLENGES FOR INDIAN INDUSTRY

Global trends have impacted the domestic paper industry in

India too. As per current estimates of CRISIL and industry

experts, domestic growth for paper and paperboards is

expected to witness marginal slow down over the next two

years. Industrial varieties too are estimated to register lower

growths. Newsprint varieties would have at CAGR of 6.3 per

cent in 2009 and 2010 while it would grow at CAGR of 7 per

cent in next 5 years. While the overall growth in the next

two years would be lower at 5.5 per cent, it is estimated

that in the next 5 years, the domestic industry would have a

CAGR of 7 per cent. It is also relevant to take into account

that incremental capacity would exceed incremental demand

over the next two years.

Domestic paper realizations would reflect international trends

and are expected to be lower over the next 2 to 3 years. As


indicated earlier, prices of raw material especially pulp and

waste paper would also be under pressure. Lower prices and

competitive pressures would see the lower prices being passed

on to the end users.

Operating margins are expected to come down by 200 to 300

basis points over the next two years. Capacity expansion

undertaken would result in higher interest cost and

depreciation charge, lowering the net margins and RoCE.

From 2010 onwards, demand is estimated to rise for all varieties

and the industry economics would then see an uptrend.

OUTLOOK AND OPPORTUNITIES FOR THE INDUSTRY

The paper industry's challenges would offer opportunities

for the best integrated mills with the ability to produce high

quality products at the most competitive prices. Vertically

integrated producers with the latest technology would be

able to offer the best quality products while containing their

costs. Improved processes and cost controls would facilitate

holding margins and manage competitive pressures.

APPM has been one of the first to recognize the potential in

actively promoting agro forestry with private land holders/

farmers to meet its raw material needs in a sustainable manner.

This has helped us produce our own pulp of the highest quality,

modernise ourselves by incorporating the latest state-of-the-

art production processes, enhance our production capacity,

conserve fossil fuel, recover and recycle chemicals and water,

improve productivity and quality of our plants and products,

upgrade environmental technologies and be cost competitive

in our manufacturing economics. We have hugely improved

our competitive strength and presently have the ability to

overcome the pressure points that confront our industry.

PERSPECTIVE AT APPM MILLS

Andhra Pradesh Paper Mills (APPM) is one of the largest

integrated pulp & paper manufacturers in India. As an ISO 14001,

ISO 9001 & OHSAS 18001 Company we have done pioneering

work in many areas in the pulp and paper industry in India.

The Company owns & operates two units, one at Rajahmundry

and another at Kadiam. The Rajahmundry based Unit:APPM

is an integrated wood based paper mill with a rated capacity

to produce 1,07,000 MT per annum finished paper production

and 1,82,500 MT per annum bleached pulp production. The

unit manufactures uncoated writing and printing paper mainly

copiers, industrial papers and posters using Casurina and

Subabul as main source of pulpwoods.

At Kadiam, Unit:CP has a capacity to produce 67,000 MT per

annum finished paper such as creamwove, azurelaid, coloured

copiers, kraft liner and newsprint using agri-residue, recycled

fibre and purchased pulp as base raw materials.

APPM has done pioneering work to develop its unique model

of farm forestry that has helped us not only create adequate

supplies of wood in our catchment area but also develop a

sustainable source of pulpwood for the future. The Company

sells seedlings from its nurseries and counsels farmers on

the best methods to grow them thereby conserving natural

resources and creating a healthier environment. Our farm

forestry program is based on developing massive plantations

on marginal and degraded farm lands. As of today, the

Company can ensure that it gets 100% of its requirement of

hardwood from its farm forestry efforts. While doing so, APPM

supports farmer welfare programs and champions the cause

of an eco friendly environment.


Presently, around 25 per cent of the pulp produced is sold to

a few large paper manufacturers. At APPM, the paper

production capacity is being enhanced and Paper Machine

No. 6 is expected to be installed during the last quarter of

the financial year 2009-10. This initiative will further enhance

the marketable quantities of paper and add to both top and

bottom lines of the Company.

For decades, the Company has been conscious of its corporate

responsibilities and has followed a strict environmental

policy. Investments continue to be made in achieving

ambitious targets. Such efforts have helped protect and

regenerate natural resources, conserve energy and water,

improve productivity and made the mills environment track

records ahead of all compliance standards.

Paper industry is capital intensive industry and has a large

gestation period. Pay back is partly earned through better

product characteristics and value realisation and partly by

improving productivity. In its endeavor to match global

standards, APPM has invested heavily in environment friendly

technologies that help increasing the overall quality of

products and result in productivity gains.

As part of the Mill Development Plan, the Company has

installed a chipper line which enables more homogenous chips

which in turn help produce good quality pulp; a continuous

digester that works on low solid and low temperature cooking

of chips; a two stage oxygen delignification plant followed

by an elemental chlorine free bleaching plant; a non-

condensable gas burning system suitable for high volume

and low concentration gases; a chemical recovery system

based on high steam economy evaporation and crystallization

technology for higher solids concentration; a recausticizing

plant; a rotary lime kiln; a 34 MW turbine power boiler to

supplement captive power and a diffused aeration system

with cooling tower to improve the efficiency of the effluent

treatment plant.

These plants and processes ensure consistent pulp quality with

high strength properties, low consumption of utilities and

chemicals and offer economies of scale. The Company has

improved the economics of production in the mill and exceeded

current environmental norms applicable in the country.

For all grades except newsprint, marketing and distribution

is done primarily through a network of 75 dealers and sub-

dealers. Some large consumers are also being catered directly

by the company. APPM also participates in government

tenders. Exports are undertaken through a network of

indenting agents across 20 countries

The Company markets newsprint to major newspaper

publishing houses in Southern and Western India through

indenting agents. Domestic prices in this product category

have tended to align with the global trends and have reduced

substantially in the last year.

PERFORMANCE REVIEW

Profitability

The domestic pulp and paper market was impacted by the

global slowdown, with drop in both volumes and prices. APPM

managed the challenges better and reported a higher Profit

before Depreciation and Tax of Rs.7,488.05 lakhs as compared

to Rs.6,497.07 lakhs in the previous year. The Profit after

Tax was also higher by about 14.6 per cent at Rs.1,895.39

lakhs, over Rs.1,654 lakhs achieved in 2007-08.


Production

Production for the year 2008-09 was 1,77,748 MT including

paper production of 1,46,139 MT and surplus bleached wood

pulp production of 31,609 MT. In comparison, the production

was 1,80,681 MT in 2007-08.

Surplus pulp production was lower for the year at 31,609 MT

as compared to 34,867 MT in the previous year. Pulp transfer

to Unit:CP was stepped up at 28,093 MT for captive

consumption in 2008-09 as compared to 14,037 MT in

2007-08.

Paper production was marginally higher at both the Units.

Unit:APPM produced 94,828 MT as compared to 94,699 MT in

the previous year. Similarly, Unit:CP produced 51,311 MT as

compared to 50,789 MT in 2007-08. During the year, both

Unit:APPM and Unit:CP continued to upgrade their product

quality.

Sales

Sales for the year were 1,70,239 MT as compared to 176,758

MT in the previous year. In 2008-09, paper sales comprised

1,38,630 MT and sale of surplus pulp was 31,609 MT. In

comparison, paper sales in 2007-08 were 141,891 MT and

surplus pulp of 34,867 MT accounted for the balance. The

slow down in the economy in the second half of the year

impacted volumes and price realizations both in the pulp

and paper segments.

The Company managed to get a better Net Sales Realisation

per MT over the previous year partly due to better market

conditions and revisions in the price list across all grades in

the first half of the financial year and partly due to change

in product mix at Unit: CP.

Export volumes were 14,546 MT as against 13,101 MT in the

previous year.

Raw Material

APPM could source all its requirement of pulpwood within a

radius of 200 kms and 97 per cent of the procurement was

obtained from the Company's own farm forestry initiative.

The clonal seedlings distributed by the Company have started

yielding results and the farmers have reported more than 100

per cent improvement in yield per acre of wood produced. The

farm forestry programme has raised plantations in over 86,400

ha since 1989 when the initiative was started with a goal of

achieving raw material self sufficiency and sustained availability.

APPM's ambitious farm forestry scheme emphasises

conservation of natural resources and healthier environment,

massive plantations on marginal and degraded farm lands

and supports farmer friendly practices.

Utilities

There were several areas in which APPM improved process

efficiencies and reduced cost of utilities, primarily due to

gains from implementing the Mill Development Plan.

Cost of power & fuel stood at Rs.6,473.05 lakhs as against

Rs.7,063.89 lakhs in the previous year. Power & fuel as a

percentage of manufacturing cost was reduced to 10.84 per

cent in 2008-09 from 12.28 per cent in 2007-08 and 14.93

per cent in 2006-07.

Savings in power & fuel were due to low coal consumption of

15,781 MT consequent to high steam generation from the

recovery boiler. Power cost was Rs.3,642 per MT of production

as against Rs.3,916 per MT in 2007-08.


The ratio of grid power to self generated power was reduced

to 17.3:82.7 in 2008-09 as compared to 21.4:78.6 in

2007-08. This is to be seen in the background of the cost

per unit from both the sources. APPM purchased power from

the grid at Rs.3.13 per unit while its own generation through

steam turbine (Double extraction-cum-condensing type) cost

only Rs.2.17 per unit.

Chemical recovery efficiency was higher at 95.69 per cent as

compared to 93.05 per cent in 2007-08. The improving trend can

be seen from the fact that it was 92.36 per cent in 2006-07.

Furnace oil consumption in the recovery boiler was 9.1 litres

per MT of unbleached pulp as against 39 litres per MT in the

previous year.

Water consumed was lower at 100.5 M3 per MT of product as

compared to 108 M3 per MT in 2006-07.

Stores, Chemicals and Spares Consumption

Their consumption at Rs.17,355.63 lakhs was higher by

Rs.2,656.63 lakhs due to steep increase in the cost of major

chemical inputs such as caustic lye, sodium chlorate,

hydrogen peroxide, sulphuric acid, furnace oil etc.

The costs were also higher due to a change in product mix

(higher quantities of Creamwove and lower production of

Newsprint at Unit: CP), process changes, changes in raw

material composition and the increased need to optimize on

bleaching chemicals.

Interest & Finance Charges

Interest and finance charges were higher by Rs.3,512.89 lakhs

over the previous year, after accounting for the loss on

account of the exchange rate fluctuations of Rs.980.51 lakhs.

It must be recalled that the Company had exchange gain of

Rs.2,123.78 lakhs in 2007-08, while in 2008-09 there was

exchange loss of Rs.980.51 lakhs.

APPM finances its operations through a mixture of retained

profits and borrowings from financial institutions and banks.

Borrowings are at both fixed and floating rates of interest.

Due to the turmoil in the international financial markets,

the interest rates remained firm until December 2008. The

interest rates of short term loans were very high for initial

part of the year. The overall effective interest rate of interest

was 9 per cent.

With the commissioning of the pulp mill and the completion

of Phase I of the MDP, interest costs are now being charged

to revenue.

Depreciation

During the year, the new coal fired boiler was capitalized.

Depreciation for the year was higher by Rs.174.97 lakhs.

Exceptional item

There was a net gain of Rs.111.87 lakhs during the year. The

Company has provided for the Mark-to-Market (MTM) loss for

the year ended 31st March, 2008. The MTM on the outstanding

derivatives, forward covers and reinstatement of foreign

currency vendors, customers and EEFC accounts as on 31st

March, 2009 has resulted in reducing earlier provisions made

and the Profit and Loss Account has been credited by

Rs.111.87 lakhs.

INTERNAL CONTROLS

The Company has an internal control system commensurate

with the size and nature of the business. The Audit Committee


of the Company provides reassurance to the Board on the

existence of an effective internal control environment.

IT SUPPORTS BUSINESS

Enterprise Wide IT and ERP infrastructure is monitored and

supported by a dedicated in-house IT team in the areas of

ERP (SAP) support, data centre management, hardware

capacity planning, networking, software development and

systems administration. A centralized data center has been

installed at Unit: APPM having clusters of IBM P-series

servers with AIX operating system to comply with the SAP

landscape. MySAP ECC 5.0 and ORACLE database provides

24X7 services to all users within the Company. Connectivity

at different locations in APPM is provided through

contemporary communication links such as leased lines, SSL

VPN/Internet and ISDN through various capable service

providers. Firewalls and other security software have been

installed for enforcing strict Information security practices

to mitigate risks and to protect IT assets from any threats &

vulnerabilities.

The ERP system supports the complex business with ease.

Based on priorities related to the business, the

implementation of SAP has been phased in three stages.

Implementation has been completed in key function areas

such as Material Management, Sales & Distribution,

Production Planning, Quality Management and Finance. APPM

further envisages the strengthening of ERP Value chain by

deploying suitable functional modules and BI suite to

improve business dynamics and decision making capabilities

across all layers of management.

HR INITIATIVES

Industrial relations at both the units of the Company have

been healthy and participative. As in the earlier years, the

employees and the union have been proactive in finding

solutions to improve productivity.

Investment in training continued to be stepped up at both

the units. 5,732 participants were provided formal training

in subjects as varied as fibreline, paper technology, quality

maintenance management, safety, ERP, employee

development etc. Safety aspects such as working at heights,

chemical safety, electrical safety, fire fighting etc were

focused and a significant amount of man days were devoted

to imparting knowledge and skills in these areas.

Participant received on an average 21 man hours of training.

As at 31st March 2009, there were 2,550 permanent

employees in the Company.

OUTLOOK

It is recognized that the economic slowdown is a temporary

setback and that India will be one of the earliest countries

to recover and report sustained GDP growth in excess of 7

per cent. Paper industry in general and APPM in particular

needs to be ready to grab the emerging opportunities by

developing an infrastructure that enables higher production,

facilitates improving productivity and lowers manufacturing

costs.

Looked at a wider perspective, we live in a knowledge

oriented world where majority of people have increasing

aspiration levels and feel a need to improve their quality of

life. There is anecdotal evidence that confirms increasing


use of paper with rising human development. Demand for

paper is expected to keep increasing in times to come

especially in developing countries like India and China. In

view of the paper industry's strategic role for the society

and for the overall industrial growth, it is imminent that

the paper industry performs well.

Performance of the industry in the past had been constrained

due to high cost of production caused by inadequate

availability and high cost of raw materials, rising costs and

at times inadequate availability of power. The industry had

also being perceived as showing low sensitivity to

environmental standards. The changes within the industry

in all the above mentioned fronts are visible and the paper

industry in India is geared to face the future.

India is one of the fastest growing markets for paper globally

and this presents an exciting scenario. Paper consumption is

poised for a big leap forward in sync with the economic growth

and is estimated to touch 13.95 million tons by 2015-16.

The forward view is that growth in paper consumption would

be in multiples of GDP and hence an increase in consumption

by one kg per capita would lead to an increase in demand

of more than a million tons of paper. According to estimates

made by the Indian Paper Manufacturers Association, paper

production is likely to grow at a CAGR of 8.4 per cent while

paper consumption will grow at a CAGR of 9 per cent till

2012-13 (as against CAGR of 7 per cent estimated by CRISIL).

Imports are expected to supplement indigenous supplies in

products wherein Indian players are not actively present.

APPM seeks to grow faster than the industry average and is

striving to participate in the improving demand scenario

for paper by ensuring economies of scale, efficient usage of

resources and value chain management. The investments

that continue to be made in the systems, processes, product

and market are expected to add traction to the Company's

operational performance and meet stakeholder expectations.

MANAGEMENT OF RISKS

There are several risks that every industry faces and the

paper industry has its own inherent risks. APPM's risk

management goal is to identify and evaluate risks as early

as possible and limit business losses by taking suitable

measures. Thus, the Company aims to avoid risks that pose

a threat to its sustainable growth.

The management of APPM understands that risks can

negatively impact the attainment of both short term

operational or long term strategic goals. Risk management

is a part of the business planning and controlling process

and is vital to ensure effectiveness in business success.

Some of the industry specific risks need a review:

Growth

Global recessionary conditions have impacted Indian economy

and almost all sectors have seen a slowdown in demand, poorer

product off-take, sagging prices, rising inventory and

receivables and moderation in expectations. Paper industry

has a positive co-relation to economic development and lower

GDP growth could affect business fortunes.

There is an increasing recognition that India is in a better

position to face the challenges brought about by this

slowdown. Despite the global pressures, the Indian economy

is expected to grow much higher than the global average


but, lower than the earlier estimates of 8.5 per cent. Present

estimates tend to indicate that the Indian GDP will witness

a growth of 7 per cent through the 11th Plan period. Paper

industry would be a beneficiary of the stimulus packages

and investment in education being made by the Union

Government. Higher literacy and aspiration levels of the

people are expected to further increase the growth rate of

the paper industry.

APPM has organised its strategy and systems and has

invested in assets that will fast track the Company with

improved financials. Growth seems compelling for both the

industry and all well managed players such as APPM. The

Company's strives for sustainable growth higher than industry

average.

Competition

The greatest threat to a Company in a highly competitive

field is the fear of not being able to compete with its industry

peers and shedding market presence.

This risk perception would not apply to APPM because of

the branding, quality product and service that are associated

with the Company. Leadership positions in terms of product

quality have been earned over the decades in some of the

key segments. Andhra Paper is well known in segments such

as copiers and high grade writing and printing papers and

is rated amongst the top three in terms of quality in almost

all the product segments that it competes in the industry.

Pricing power

There is near perfect competition in the industry and prices

are a function of supply and demand. Domestic pricing is also

influenced by global trends in both availability and price of

pulp, paper and waste paper.

International prices have weakened and domestic prices have

followed the same trend. Industry leaders are those that

have marked presence in segments where they are able to

differentiate themselves and offer value proposition to

customers. In some segments, the brand value enables

players such as APPM to price the products appropriately.

Emphasis on quality has reduced the possibilities of

commoditization. The Company recognized much earlier than

its peers that the best mitigation would be ensured by high-

end quality and lowering of production costs.

Product Substitution

Paper enjoys a unique position with really no low cost

substitution threat. However, electronic medium has reduced

the archiving needs that were met by lower grades of paper

which could impact demand pull within the Creamwove

category.

The growth in demand and consumption of high grade writing

and printing papers has instead outpaced the threats with

higher usage in the copier and stationery segments. APPM

sees no threat in the short and medium term within the

writing and printing sector in the paper industry in India.

Technology

The best in the industry use state-of-the-art technology and

achieve multiple objectives including enhanced productivity,

high-end quality and compliance with the environmental

norms. This initiative will remain the industry standard to

remain globally competitive. Failure to keep pace with


production technology can lower the competitive edge

indigenously and globally.

APPM benchmarks itself with the best in the global paper

industry after implementing the MDP. Ongoing efforts will

continue even as the Company will optimize on its resources

to meet the needs of the market.

Raw Materials

Paper industry requires a sustainable supply of wood to survive

and flourish. Wood accounts for approximately 30 per cent of

the cost of production. Any threat in supplies would adversely

affect the survival of the paper industry.

This risk is being mitigated by encouraging environment

friendly farm forestry practices and assisting land owners

to cultivate trees on fallow wastelands. APPM has taken the

leadership role in ensuring conservation and regeneration

of natural resources, helping farmers to create sustainable

income streams and in the process ensuring adequate

availability of quality raw materials for paper manufacture.

Utilities

The paper industry needs large quantities of power, fuel and

water to operate. Lack of availability of any of these utilities

can add to the cost sensitivities of the industry. Energy costs

form about 15 per cent of the net sales of paper companies.

APPM has minimised its risk perception by investing

in a recovery boiler, a coal fired boiler and in a 34MW turbine

that supplements the power drawdown from the

grid. Availability and quality of coal supplies have been

enhanced.

The Company has made adequate plans to protect its needs

and is presently offering surplus power to the state grid.

There is adequate availability of coal for APPM as the

Company has ties with producers such as Singareni Collieries

and Mahanadi Coalfields Ltd for uninterrupted supplies.

Unit: APPM mill is adjacent to the River Godavari which has

copious availability of water. Yet, the mill has invested in

and strives to conserve use of water. As far as possible, the

Company recycles water and minimizes wastages. Over the

years, APPM has been consistently reducing energy and water

costs per MT of product manufactured.

Exchange rate

Currency exchange rates could undergo changes with the Indian

rupee turning volatile for most part of the year. This could

have a potential impact on the export earnings of the Company.

The Company is conscious of the impact of the volatile

movements. Hedging is done wherever necessary and forward

covers are taken to protect the Company's interests. The

Company is also conservative in booking the unfavorable

impact of exchange fluctuations as soon as the impact is

determined. Prudential accounting norms are followed in

line with the Accounting Standards.

Interest rate

Interest rate risk result from changes in prevailing market

rates which can cause an impact on the financials of the

Company.

APPM's financial instruments comprise borrowings, cash and

liquid resources and various items such as trade debtors


and trade creditors that arise directly from operations. The

principal risk arising from the Company's financial

instruments is liquidity and interest rate risk. Risks from

cash flow fluctuations are recognised in a timely manner as

part of the liquidity planning.

The year end receivables were lower at Rs.3,985.87 lakhs as

against Rs.4,587.71 lakhs at the end of the corresponding

date in 2008. Quantified in terms of sales, the debtors were

only 22.1 days of sales as at 31st March, 2009, despite the

tightness in the market.

The year end inventory of finished goods at Rs.4,420.48

lakhs on 31st March, 2009 was higher than the holdings at

the end of March 2008 of Rs.2,199.84 lakhs. Yet, the finished

goods constituted only 24.5 day's sales.

On an on-going basis, the Company finances its operations

through a mixture of retained profits and borrowings from

financial institutions and banks. Borrowings are at both

fixed and floating rates of interest. The Company's operations

are principally financed by floating rate borrowings whereas,

significant investment are generally financed through fixed

rate borrowings.

Although interest rates have weakened, APPM is conscious

of the dynamics of the market, and has taken effective steps

to not only reduce costs and improve margins but also be in

a position to report higher post tax profits. Generating free

cash flow remains a priority.

Environment

Pulp and paper industry has a commitment for environmental

protection, and it would be essential to remain sensitive to

the needs of the planet.

APPM has been a responsible corporate citizen and has

hugely minimised the impact of mill operations by taking a

proactive role. The Company plants more trees than it

harvests and reduces water consumption year after year.

The latest technology has been adopted for elemental chlorine

free bleaching of pulp and recycling of water. Efficiency of

the effluent treatment plant has been improved with diffused

aeration system and by installing a cooling tower.

APPM installed a Non Condensable Gases (NCG) system, both

for the collection and incineration of high volume low

concentration and low volume high concentration gases. This

has made the mill and surrounding environment odour free.

APPM also installed high efficiency ESPs to contain

suspended particulate matter to less than 50 ppm.

Several such initiatives have been taken to ensure APPM

meets standards much before the standards are laid down or

implemented by all regulatory authorities.


2008-2009 2007-2008 2006-2007 2005-2006 2004-2005

OPERATING RESULTS

Production MT 177748 180681 159574 145998 162764

Sales MT 170239 176758 155750 151717 163421

Turnover Rs. Lakhs 65733.39 62824.41 53303.00 49756.16 49487.92

Profit before Depreciation and Tax Rs. Lakhs 7488.05 6497.07 6432.94 6344.49 5454.82

Depreciation Rs. Lakhs 5411.19 5236.22 4142.64 2124.35 2062.86

Exceptional items Rs. Lakhs (111.87) (705.52) – – –

Provision for Tax Rs. Lakhs 42.14 89.17 (324.78) 336.99 775.07

Provision for Deferred Tax Rs. Lakhs 251.20 223.20 201.90 380.00 77.20

Profit after Tax Rs. Lakhs 1895.39 1654.00 2413.18 3503.15 2539.69

Dividend on Equity Shares Rs. Lakhs 128.77 257.34 257.34 476.39 297.75

Tax on Equity Dividend Rs. Lakhs 21.89 43.73 43.73 66.82 41.76

Retained Profit Rs. Lakhs 1744.73 1352.93 2112.11 2959.94 2200.18

SOURCES OF FUNDS

Share Capital – Equity Rs. Lakhs 2573.36 2573.36 2381.97 2381.97 1183.00

Reserves & Surplus Rs. Lakhs 39224.40 39069.58 36125.63 34013.52 20837.20

Shareholders' Funds Rs. Lakhs 41797.76 41642.94 38507.60 36395.49 22020.20

Share Application Money from Promoters Rs. Lakhs – – – – 1275.00

Borrowings Rs. Lakhs 56103.17 53193.05 51109.71 33417.93 15130.07

Deferred Tax Liability Rs. Lakhs 2165.55 2117.50 1922.10 1720.20 1340.20

Total Rs. Lakhs 100066.48 96953.49 91539.41 71533.62 39765.47

APPLICATION OF FUNDS

Net Fixed Assets Rs. Lakhs 90333.10 86390.19 83922.27 68368.33 31040.76

Investments Rs. Lakhs 1664.34 1664.34 1664.36 1776.97 1807.87

Net Current Assets Rs. Lakhs 7926.33 8665.77 5602.12 1115.82 6497.98

Miscellaneous Expenditure Rs. Lakhs 142.71 233.19 350.66 272.50 418.86(To the extent not written off)

Total Rs. Lakhs 100066.48 96953.49 91539.41 71533.62 39765.47

Book Value per Equity Share Rs. 162.00 162.00 162.00 152.00 183.00

Earnings per Equity Share Rs. 7.37 6.44 10.13 18.97 21.47

Dividend (Equity) % 5 10 10 20 25

Note: Figures have been regrouped wherever necessary.

Five Years at a Glance


Board of Directors

Shri L.N. Bangur

Chairman

Shri R.C. Sarin

Shri P. K. Paul

Ms. Sheetal Bangur

Director (Commercial)

Shri N. Srinivasan

Shri R.V. Raghavan

Shri M.K. Tara

Managing Director

Shri P.K. Suri

Director (Operations)

Smt. Alka Bangur

Shri P.J.V. Sarma

Shri Rajiv Kapasi

Shri Shreeyash Bangur

Director (Corporate)

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Shri E. SairamSenior Vice President (Finance & Accounts) &Chief Finance Officer

Shri C. PrabhakarSenior Vice President (Corporate Affairs) &Company Secretary

Shri Amit MehtaPrincipal Executive to Chairman

Shri Jaspal SinghVice President (Marketing)

Shri Hemant Kumar SinghChief Information Officer

Shri Yogesh JainGeneral Manager (Commercial)

Corporate Information(As on 31st July, 2009)

BOARD OF DIRECTORSShri L.N. Bangur, Chairman

Smt. Alka Bangur

Shri N. Srinivasan

Shri R.C. Sarin

Shri P.J.V. Sarma

Shri R.V. Raghavan

Shri P. K. Paul

Shri Rajiv Kapasi

Shri M.K. Tara, Managing Director

Ms. Sheetal Bangur, Director (Commercial)

Shri Shreeyash Bangur, Director (Corporate)

Shri P.K. Suri, Director (Operations)

Shri C.S. MurtySenior Vice President (Projects)

Shri J.K. JainVice President (Raw Materials)

Shri V.V.B. Vasantha RaoAssociate Vice President (Works)(Unit:APPM)

Shri R.G. MandhaniaAssociate Vice President (Works)(Unit:CP)

EXECUTIVES

Shri M. Surya RaoGeneral Manager (P&D)

Shri G. Kanna RaoGeneral Manager (P&A)

Shri K.M. KasettyGeneral Manager (Paper)

Shri C. SankarGeneral Manager (Accounts)

CORPORATE OFFICE WORKS

AuditorsBrahmayya & Co.,Chartered AccountantsVisakhapatnam

Cost AuditorsNarasimha Murthy & Co.,Cost AccountantsHyderabad

Principal BankersState Bank of IndiaCanara Bank

REGISTERED OFFICERajahmundry - 533 105East Godavari DistrictAndhra Pradesh, IndiaTel. : +91(883) 247 1831 to 247 1838Fax : +91(883) 246 1764E-mail: [email protected]

CORPORATE OFFICE501-509, Swapnalok Complex,5th Floor, 92/93 Sarojini Devi RoadSecunderabad - 500 003,Andhra Pradesh, IndiaTel. : +91 40 2781 3625, 2781 3715Fax : +91 40 2781 3717E-mail: [email protected]

Unit:CPIndustrial Area, MR Palem - 533 126Kadiyam Mandalam, East Godavari District,Andhra Pradesh, IndiaTel. : +91(883) 245 4651Fax : +91(883) 245 3538E-mail: [email protected]

Unit:APPMRajahmundry - 533 105East Godavari District,Andhra Pradesh, IndiaTel. : +91(883) 247 1831 to 247 1838Fax : +91(883) 246 1764E-mail: [email protected]

WORKS

Website: www.andhrapaper.com

DELHI OFFICE

Shri Alok PrakashAssociate Vice President (Marketing)

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ToThe Members

Your Directors have pleasure in presenting the 45th AnnualReport and the Audited Accounts for the year ended31st March, 2009.

Rs. Crore

Financial Results 2008-09 2007-08

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

Sales and other income (after

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

accounting for increase in stocks) 669.05 604.97

Earnings before Interest,

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

Depreciation and Taxation (EBIDTA) 125.37 80.33

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

Less: Interest 50.49 15.36

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

Depreciation 54.11 52.36

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

Add: Exceptional items 1.12 7.05

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

Profit before Tax 21.89 19.66

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

Less: Provision for Tax 2.93 3.12

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

Profit for the year 18.96 16.54

Add: Profit brought forward

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

from previous year 104.06 92.19

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

Profit available for appropriation 123.02 108.73

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

Appropriations:

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

Transfer to General Reserve 1.90 1.66

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Proposed Equity Dividend 1.29 2.57

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

Corporate Tax on Dividend 0.22 0.44

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Balance carried to Balance Sheet 119.61 104.06

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123.02 108.73

During the year under review, your Company recorded aproduction of 1,77,748 MT and sales of Rs.657.33 crore.EBIDTA for the year was Rs.125.37 crore as compared toRs.80.33 crore in the previous year, registering a substantialgrowth of 56%. Your Company recorded a profit of Rs.18.96crore for the year as compared to Rs.16.54 crore in theprevious year on account of improved operational efficiencyand increase in contribution.

Dividend

Your Directors have recommended a dividend of Re.0.50 pershare for the year ended 31st March, 2009 on 2,57,33,555Equity Shares of Rs.10 aggregating to Rs.128.77 lakhs.

Marketing and Exports

As predicted last year, market operating prices witnessed areduction in the second half due to increasing competitionarising out of higher availability resulting from capacityadditions - in the short term this would translate into adecline in demand to capacity ratio thus increasing pressureon prices.

The sale of paper and pulp during the year under reviewstood at 1,38,630 MT and 31,609 MT, respectively. Export ofpaper during the year was 14,546 MT. Major destinationswere Bangladesh, Kenya, Nigeria, Sri Lanka, Thailand, theUnited Arab Emirates etc.

Raw Material Procurement

In the field of social/farm forestry, efforts were made toincrease the area under plantation activities in order to meetthe demand of pulpwood in tune with the mill developmentplan. Concerted efforts by APPM have enabled to meet andovercome the stiff competition in the catchment area forprocurement of pulpwood.

Shortfall in bamboo supplies by Government of AndhraPradesh was made good by procurement from neighbouringstates.

Raw Material Resource Development

95.20 million quality seedlings were developed during theyear 2008-09 covering an area of 14,000 hectares underplantation against 94 million seedlings covering an extentof 13,500 hectares during previous 2007 planting year.Research on clonal development has resulted intointroduction of high yielding, disease resistant clones andversatile to a wide variety of agro-climatic conditions ininland and coastal areas.

Research and Development initiatives with low cost plantingtechniques, quality seed material and high yielding, shortrotation planting stock have enhanced raw materialavailability spread over 86,400 hectares. These benefits havebeen extended to around 36,800 families and creatingemployment resource pool of 43 million man-days especiallyin rural areas so far.

Forestry Targeting Marginal and Wastelands

The ongoing farm forestry activities focused on agrariancommunity of small and marginal land holdings which couldbe better utilised for plantations with minimal investmentby adopting low cost planting technology. Wastelanddevelopment was also geared up by introducing site specificsuperior clones. Introduction of Casuarina hybrid has comeout with higher yield ensuring quality raw material to millsand higher returns to farmers.

The farm forestry activities have helped in generating thepulpwood requirement to mills and also in sustaining thelocal needs of farmers by means of generating employmentand upliftment of socio-economic conditions of the villagersand tribal communities.

Directors' Report

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The presence of paper industry in greening waste lands forraw material resources have created a strong network

comprising tribal beneficiaries, self-help groups, village

organizations etc. to fight against poverty and natural

disasters.

Mill Development Plan

Unit:APPM

Projects implemented

Wet Lap Machine No.3 of 100 BDTPD capacity was installed

and commissioned in April, 2008.

1 x 105 tph capacity coal fired boiler of high pressure and

temperature with increased thermal efficiency was installed

and commissioned in December, 2008. The boiler is equipped

with low emission ESP (50 mg/NM3) to meet the norms of

Pollution Control Board. The boiler has the facility for

incinerating wood dust and effluent sludge from effluent

treatment plant.

Presently the power requirement is 22 MW for operation of

the entire plant. After installation of 34 MW turbine and

coal fired boiler under MDP, entire power requirement is being

met by the newly installed power plant and excess generation

of 5 MW is exported to AP Transco from June 2009.

Projects under Progress

Installation of an imported second hand paper machine of

capacity of 67,000 TPA from Germany is in progress. The

dismantled machine has been received at site. Basic

engineering has been completed and detailed engineering

and procurement activity of the balance items is in progress.

Civil works are in progress and erection of Paper Machine

No.6 has started. Machine start-up trials and commercial

production are expected during the last quarter of the

financial year 2009-10.

Unit:CP

Projects under progress

Order was released for supply of sludge de-watering press for

disposal of sludge. Equipment is expected to be commissioned

during the second quarter of the financial year 2009-10.

Highlights of socio-economic activities

Under CSR activities, medical aid to the rural population

through the mobile medical van service was well received

with lot of appreciation from the beneficiaries. Todate,

approximately 1.23 lakh villagers have utilised the service

from its launch in December, 2005.

Another initiative under CSR activities was providing skills

in tailoring and embroidery to women belonging to weaker

section through three free tailoring centers also receivedvery encouraging response with 220 women getting enrolledduring the year under review.

APPM rendered its support for Prothsaham fund initiated byEast Godavari District Collector through financial assistancefor the benefit of meritorious poor students for their educationpurpose besides regular support for local socio-cultural-religious functions and events.

Particulars of conservation of energy, technologyabsorption and foreign exchange earnings and outgo

Particulars of conservation of energy, technology absorptionand foreign exchange earnings and outgo as required underSection 217 (1) (e) of the Companies Act, 1956, read withthe Companies (Disclosure of Particulars in Report of theBoard of Directors) Rules, 1988, are given in the Annexureattached hereto and forms a part of this report.

Particulars of Employees

The information required under Section 217 (2A) of theCompanies Act, 1956 and the Rules made thereunder isprovided in the annexure forming part of the Report. However,in terms of Section 219 (1) (b) (iv) of the Companies Act,this Annual Report is being sent to the shareholders excludingthe aforesaid annexure. Any shareholder interested inobtaining a copy of the same may write to the CompanySecretary at the Registered Office of the Company.

Public Deposits

22 Deposits totalling Rs.15.90 lakhs due for repayment onor before 31st March, 2009 were not claimed by the depositorsas on that date. Deposits aggregating to Rs.13.20 lakhs wererefunded upto 31st July, 2009.

During the year under review, your Company transferred asum of Rs.22,320 being the amount of deposits matured andremaining unclaimed for a period of 7 years to the InvestorEducation & Protection Fund.

Auditors

M/s. Brahmayya & Co., Chartered Accountants,Visakhapatnam, Auditors of the Company will retire at theconclusion of the ensuing Annual General Meeting and beingeligible, offered themselves for re-appointment.

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Directors

Pursuant to Article 142 of the Articles of Association of theCompany, Shri N. Srinivasan and Shri R.C. Sarin will retire byrotation at the ensuing Annual General Meeting and areeligible for re-appointment.

Industrial Relations

Industrial relations at both the Units of the Company hasbeen cordial.

Thrust is being continued to improve the quality of the humanresources by providing necessary training in functional areaslike safety, management systems, soft skills to improveindividual's competency to meet the current challenges andimprove overall performance of employees therebyorganizational performance. During the year under review,the total training man-days including induction training fornew recruits are 9,946 in respect of both the Units.

As on 31st March, 2009, the total number of permanentemployees on rolls of the Company was 2,550.

Cost Accounting Records

Cost accounting records for the year ended 31st March, 2009were maintained as per Cost Accounting Records Rules.M/s. Narasimha Murthy & Co., Cost Accountants wereappointed as Cost Auditors of the Company with the approvalof Central Government to audit the cost accounts for theyear ended 31st March, 2009.

Directors' Responsibility Statement

Your Directors hereby confirm and declare that:

a. in the preparation of Annual Accounts for the year ended31st March, 2009, the applicable Accounting Standardshad been followed along with proper explanationrelating to material departures as mentioned in NoteNo.9 of Schedule 19 (II) of the said Annual Accounts;

b. they had selected such accounting policies and applied

them consistently and made judgements and estimatesthat are reasonable and prudent so as to give a trueand fair view of the state of affairs of the Company atthe end of the financial year i.e. 31st March, 2009 andof the profit of the Company for that period;

c. they had taken proper and sufficient care formaintenance of adequate accounting records inaccordance with the provisions of Companies Act, 1956for safeguarding the assets of the Company and forpreventing and detecting fraud and other irregularities;

d. they had prepared the accounts for the year ended31st March, 2009 on a going concern basis.

Response to the Auditors' observation

As regards Auditors' observation vide item Nos.4 (d) and (e)of Auditors' Report dated 12th June, 2009 regardingAccounting Standard 22 on Accounting for Taxes on Income,an explanation has been given in Note No.9 of Schedule 19(II) of the Annual Accounts for the year ended 31st March,2009.

Acknowledgements

Your Directors thank the Central Government and theGovernment of Andhra Pradesh, IFC, DEG, Finnish Fund forIndustrial Cooperation Limited, IDBI Bank Limited, State Bankof India, Canara Bank, Axis Bank Limited and HDFC BankLimited for their continued support during the year. YourDirectors also wish to convey their gratitude to the valuedcustomers and dealers for their continued patronage duringthe year. Your Directors also place on record their appreciationof the contribution made by all the employees during theyear under review.

For and on behalf of the Board

Secunderabad L.N. Bangur31st July, 2009 Chairman

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Information under Section 217 (1) (e) of the Companies Act, 1956 read with Companies (Disclosure of Particulars in theReport of the Board of Directors) Rules, 1988 and forming part of Directors' Report.

Conservation of Energy: The Company has implemented the following measures for energy conservation in the year 2008-09:

1. Installation of energy efficient high steam pressure and temperature coal-fired with high thermal efficiency. Increasein specific steam generation from 3.7t/t of coal to 3.9 t/t of coal. Increase in specific power generation from90 kwh/t of steam to 130 kwh/t.

2. Installation of cooling tower for water circulation and conservation in Paper Machines No.2 and No.3. Reduction inwater consumption is 50 M3/hr.

FORM 'A' 2008-2009FORM FOR DISCLOSURE OF PARTICULARS WITH RESPECT TO CONSERVATION OF ENERGY

Particulars Unit Current Year Previous Year

A. Power & Fuel Consumption

1. Electricity:a. Purchased Units KWH/Lakhs 431.49 495.01

Total amount Rs./Lakhs 1351.78 1419.98Rate/Unit Rs. 3.13 2.87

b. Own Generationi. Through Diesel Generator

Units KWH/Lakhs 3.40 1.29Units/Ltr of Diesel Oil KWH 2.91 2.75Cost/Unit Rs. 14.67 45.68

ii. Through Steam Turbine(Condensing)Units KWH/Lakhs 3.22 135.71Cost/Unit Rs. 4.29 3.69

iii. Through Steam Turbine(Double extraction-cum-Condensing)Units KWH/Lakhs 1708.67 1299.89Cost/Unit Rs. 2.17 2.35

iv. Through Steam Turbine(Single extraction-cum-Condensing)Units KWH/Lakhs 345.64 383.39Cost/Unit Rs. 2.98 2.57

2. Coal (Steam/Slack)Quantity MT 262146 277927Total Cost Rs./Lakhs 4605.25 4407.65Average Rate Rs./MT 1757 1586

3. Furnace OilQuantity Kl 1,419 5592Total Amount Rs./Lakhs 404.28 1158.46Average Rate Rs./Kl 28491 20716

4. Husk/Saw Dust/OthersQuantity MT 13457 12427Total amount Rs./Lakhs 37.17 28.99Average Rate Rs./MT 993 648

B. Consumption per tonne of productionElectricity KWH 1606 1487Furnace Oil Kl 0.010 0.038Coal MT 1.794 1.910Husk, Saw Dust & others MT 0.092 0.085

Annexure

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FORM 'B'

FORM FOR DISCLOSURE OF PARTICULARS WITH RESPECT TO ABSORPTION

A. Technology Absorption

a. Efforts made towards technology absorption, adoption and innovation

As part of augmentation of capacity of sheeting, incorporated second hand Bielomatic Sheeters at Paper MachineNo.2 and Paper Machine No.3, which were imported from Europe at Unit:CP.

b. Benefits derived as a result of the above efforts: Augmented sheeting capacity.

c. Imported technology (imported during the last 5 years reckoned from the beginning of the financial year)

1. a. Technology imported i. Adoption of state-of-art technology of CD Filter incausticizing plant.

ii. Adoption of state-of-art technology of Drum Chipper inChipper House.

b. Year of import 2005-2006

c. Has the technology been fully absorbed Technology has been fully absorbed.

2. a. Technology imported i. Adoption of state-of-the-art technology of low solidscooking system and fiber line.

ii. Adoption of state-of-the-art technology of high efficiencyTurbo Generator Set.

iii. Adoption of state-of-art technology of Chlorine DioxidePlant.

iv. Adoption of state-of-the-art technology of A4 Cuttingline.

v. Adoption of state-of-the-art technology of CentralizedRefining System.

3. a. Technology imported Adoption of state-of-the-art technology of Duo-former, sizepress and calendar including heating and cooling system inPaper Machine No.3.

b. Year of import 2007-2008


4. a. Technology imported Adoption of Bielomatic technology for augmentation ofcapacity of sheeting at Paper Machine No.2 and Paper MachineNo.3 at Unit:CP.

b. Year of Import 2008-09


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B. Research and Development (R&D)i. R&D (Plant)

1. Specific areas in which R&D – New product development.carried out by the Company – Product quality improvement.

– Process optimization under studies.

– Identification of functional additives and plant trials for costreduction/quality improvement.

2. Benefits derived as a result of the above R&D – Development of Special Inkjet paper.

– Development of new products to suit market requirement.

– Improvement in products for domestic markets.

– Identification of additives for quality improvement.

3. Future plan of action – New product development.

– Evaluation of alternate fibrous raw materials.

– Process optimization studies.

– Identification of functional additives/chemicals for productdevelopment, process/quality improvement and cost reduction.

ii. R&D (Forest)

1. Specific areas in which R&D – Development of quality seedlings by means of low cost plantingcarried out by the Company. techniques in farm forestry.

– Macro propagation of Casuarina and Eucalyptus for high yieldingclones.

– Wasteland development projects for resource development.

– Clonal demonstration plots.

– Establishment of Casuarina clonal seed orchards.

2. Benefits derived as a result of the above R&D – Quality seedlings by low cost planting technique has sustainedfarming community in their marginal lands by giving higheryield with minimal investment.

– Macro propagation has helped in increased productivity per unitarea within a short rotation cycle.

– Plantation activities on wastelands have helped in meeting theraw material requirement and improving the socio-economicconditions of the local communities.

– Demonstration plots giving first hand information to farmersand the benefits derived from clones under field conditions.

– Clonal seed orchards to derive quality seed material with identityfor utilisation in farm forestry activities.

3. Future plan of action – To enhance farm forestry for resource development, by costeffective technologies.

– Introduction of more site-specific clones by means of macropropagation.

– Development superior genotypes of Casuarina by micropropagation.

– Clonal demonstration plots as a tool to promote clones for thebenefit of farmers.

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iii. Expenditure on Research & Development

a. Capital : –

b. Recurring : Rs.118.57 Lakhs

c. Total : Rs.118.57 Lakhs

d. Total R&D expenditure as a percentage of Total Turnover : 0.18%

C. Foreign Exchange Earnings and Outgo

a. Foreign exchange earned : Rs.5405.08 Lakhs

b. Foreign exchange utilized : Rs.6856.47 Lakhs

For and on behalf of the Board

Secunderabad L.N. Bangur31st July, 2009 Chairman

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1. Company's philosophy on Corporate Governance

The Company strongly believes that practice of Corporate Governance should aim at meeting the aspirations of thestakeholders and the expectations of the society. For this purpose, the management follows transparency, professionalismand accountability and performs its role accordingly.

2. Board of Directors

i. The Board of Directors comprised of eight Non-Executive Directors and four Executive Directors as on31st March, 2009.

a. Non-Executive Promoter Directors

Shri L.N. Bangur, Chairman

Smt. Alka Bangur

b. Non-Executive Independent Directors

Shri N. Srinivasan

Shri R.C. Sarin

Shri R.V. Raghavan

Shri P.J.V. Sarma

Shri P.K. Paul

Shri Rajiv Kapasi

c. Non-Promoter Executive Directors


Shri P.K. Suri, Director (Operations)

d. Executive Promoter Directors



The Chairman of the Board is a non-executive Chairman.

ii. During the financial year 2008-09, five meetings of Board of Directors were held on 12th May 2008, 29th July 2008,23rd October 2008, 31st January 2009 and 25th March 2009.

iii. Attendance of each Director at the meetings of Board of Directors held during the financial year 2008-09, lastAnnual General Meeting and the number of other directorships and memberships of committees of each Director invarious companies:

Name

Attendance Particulars No. of Board Committee(s)

of which he/she is the

No. of Board Last A.G.M.

No. of other

Member ChairmanMeetings

directorships1

Shri L.N. Bangur 5 Yes 11 – 2

Smt. Alka Bangur 5 Yes 2 2 –

Shri N. Srinivasan 5 No 14 4 5

Shri R.C. Sarin 5 No – – –

Shri P.J.V. Sarma 5 Yes 1 1 1

Shri R.V. Raghavan 5 Yes 3 1 –

Shri P.K. Paul 5 Yes – – –

Shri Rajiv Kapasi 4 No – – –

Shri M.K. Tara 5 Yes – – –

Ms. Sheetal Bangur 5 No 2 – –

Shri Shreeyash Bangur 5 Yes 1 – –

Shri P.K. Suri 5 Yes – – –

1 Excluding private limited companies, companies having licence under Section 25 of the Companies Act, 1956 and alternatedirectorships.

Report on Corporate Governance

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3. Audit Committee

i. The Company has adopted Clause 49(2)(D) of the Listing Agreement as the terms of reference for the Audit Committee.

ii. During the year, Audit Committee was reconstituted and the members as on 31st March, 2009 comprised of:

Shri P.J.V. Sarma, Chairman

Shri N. Srinivasan, Member

Shri R.C. Sarin, Member

Shri R.V. Raghavan, Member

All the above members are independent Non-Executive Directors. Shri P.J.V. Sarma, Shri N. Srinivasan and Shri R.V.Raghavan possess expert knowledge in the area of finance and accounting.

iii. During the year, the Audit Committee met on 11th April 2008, 12th May 2008, 29th July 2008, 22nd October 2008, 30thJanuary 2009 and 25th March 2009.

The following table gives attendance record:

NameNumber of Number of

Meetings held Meetings attended

Shri P.J.V. Sarma 6 6

Shri N. Srinivasan 6 5

Shri R.C. Sarin 6 5

Shri R.V.Raghavan1 4 41 Shri R.V. Raghavan was appointed as a member at the Board meeting held on 12th May, 2008.

4. Remuneration Committee

The Company had constituted a Remuneration Committee with three independent Non-Executive Directors to determinethe remuneration package of Executive Directors. The Remuneration Committee as on 31st March, 2009 comprised of ShriN. Srinivasan, Shri R.C. Sarin, and Shri R.V. Raghavan. During the year, Remuneration Committee met on 29th July, 2008and all the members attended the meeting.

i. Remuneration to Executive Directors

a. The details of remuneration paid to Shri M.K. Tara, Managing Director, Ms. Sheetal Bangur, Director (Commercial),Shri Shreeyash Bangur, Director (Corporate) and Shri P.K. Suri, Director (Operations) during the financial year2008-2009 are given below:

Rs. LakhsSalary & Perquisites Contribution to Provident Total

Name Allowances Fund, Superannuation Fund and Gratuity

Shri M.K. Tara 55.13 25.66 12.98 93.77Ms. Sheetal Bangur 12.00 3.46 3.82 19.28Shri Shreeyash Bangur 12.00 4.40 3.82 20.22Shri P.K.Suri1 20.55 6.04 4.99 31.58

1 For the period from 12th May, 2008 to 31st March, 2009.

b. The contracts with Executive Directors are terminable by giving six months notice on either side.

ii. Payments to Non-Executive Directors & criteria for making payments

a. The Company pays sitting fees to all the Non-Executive Directors for attending the meetings of Board ofDirectors and Committees of Board in addition to commission on profits depending on the availability ofprofits. However, it was decided by the Board that no commission on profits for the financial years 2007-08and 2008-09 need be provided in the respective annual accounts. No commission, therefore, was paid to Non-Executive Directors. The sitting fees paid during the financial year ended 31st March, 2009 to the Non-Executive Directors are as follows:

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Name Rs. Lakhs

Shri L.N. Bangur 1.40

Smt. Alka Bangur 0.65

Shri N. Srinivasan 1.65

Shri R.C. Sarin 1.40

Shri P.J.V. Sarma 2.25

Shri R.V. Raghavan 1.80

Shri P.K. Paul 0.65

Shri Rajiv Kapasi 0.60

b. Shareholding of Non-Executive Directors

Name Number of Equity Shares

Shri L.N. Bangur 20,360

Smt. Alka Bangur 79,150

Shri N. Srinivasan –

Shri R.C. Sarin –

Shri P.J.V. Sarma –

Shri R.V. Raghavan –

Shri P.K. Paul –

Shri Rajiv Kapasi –

5. Investors’ Grievance Committee

The Committee has been constituted to look into the redressal of shareholders and investors' complaints like non-receiptof share certificates sent for transfer, non-receipt of balance sheets, non-receipt of declared dividends etc. The Committeealso approves issue of duplicate share certificates and oversees the matters connected with the transfer of securities. TheMembers of the Investors' Grievance Committee as on 31st March, 2009 were Shri L.N. Bangur, Chairman, Shri M.K. Taraand Ms. Sheetal Bangur. The Board designated Shri C. Prabhakar, Sr. Vice President (Corporate Affairs) & CompanySecretary as the Compliance Officer. The Committee met on 30th July 2008, 31st January 2009 and 25th March 2009 andalso passed four circular resolutions during the year under review.

The details of the status of complaints received from the shareholders during the financial year 2008-2009 are furnishedbelow:

Pending as on 1st April, 2008 Nil

Received during the year 5

Redressed during the year 5

Pending as on 31st March, 2009 Nil

6. General Body Meetings

i. The location and time of the last three Annual General Meetings held:

Year Date and Time Venue

2005-2006 30th September, 2006 Sri Venkateswara Anam Kala Kendram,at 3.00 p.m. Rajahmundry - 533 104

2006-2007 21st September, 2007 Sri Venkateswara Anam Kala Kendram,at 3.00 p.m. Rajahmundry - 533 104

2007-2008 27th September, 2008 Sri Venkateswara Anam Kala Kendram,at 3.00 p.m. Rajahmundry - 533 104

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ii. Special Resolutions passed in the previous three Annual General Meetings:

Date Description of Special Resolutions passed

30th September, 2006 Consent pursuant to Section 81(1A) and all other provisions, if any, of the CompaniesAct, 1956 and Foreign Exchange Management Act, 1999 for issue of further securitiesto various categories of investors in India and abroad.

21st September, 2007 a. Re-appointment of Shri R.C. Mall, Executive Director for a further period of threeyears from 10th May, 2007.

b. Delisting of Equity Shares of the Company from the Hyderabad Stock Exchange Limitedpursuant to Clause 5 and other applicable provisions of the Securities and ExchangeBoard of India (Delisting of Securities) Guidelines 2003.

27th September, 2008 Nil

iii. No special resolution was passed through postal ballot during the financial year 2008-09.

iv. At present no special resolution is proposed to be conducted through postal ballot. The procedure laid down inCompanies (Passing of Resolutions by Postal Ballot) Rules, 2001 would be followed as and when necessary.

7. Disclosure on materially significant related party transactions

During the year, there were no transactions of material nature with the Directors and management or relatives that hadpotential conflict with the interests of the Company.

8. Details of non-compliance by the Company

There were no penalties, strictures imposed on the Company by the Stock Exchanges or SEBI or any statutory authority onany matter related to capital markets during the last three years.

9. Code of Conduct for Directors and Senior Executives

The Company adopted a Code of Business Conduct and Ethics for its Directors and senior executives. The Code has alsobeen posted on the Company's website. The Managing Director has given a declaration that all the Directors and concernedexecutives have affirmed compliance with the Code of Conduct.

10. CEO/CFO Certification

A certificate duly signed by the Managing Director & CEO and Sr. Vice President (Finance & Accounts) & CFO relating tofinancial statements and internal controls and internal control systems for financial reporting as per the format providedin Clause 49 of the Listing Agreement was placed before the Board and was taken on record.

11. Compliance with non-mandatory requirements

The Company complies with the following non-mandatory requirements stipulated under Clause 49.

a. Chairman's Office: As the Chairman of the Company is a Non-executive Chairman, the Company is maintaining aChairman's Office at Hyderabad at the Company's expense and also allowed reimbursement of expenses incurred inperformance of his duties.

b. Remuneration Committee: The Company has constituted a Remuneration Committee to determine the remunerationpackage of Executive Directors based on their performance and defined assessment criteria.

12. Means of Communication

Quarterly, half-yearly and annual financial results are usually published in Business Line (English Version) and vernacularregional newspaper viz. Andhra Prabha. Results are displayed on the Company's website: www.andhrapaper.com and alsoon SEBI designated EDIFAR site.

Official news releases, detailed presentations are proposed to be made to media, analysts, institutional investors etc.

The Management Discussion and Analysis forms part of the Annual Report.

13. General Shareholder Information

Date & Time Venue

45th Annual General Meeting 25th September, 2009 Sri Venkateswara Anam Kala Kendram, 3.00 p.m. Rajahmundry - 533 104

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14. Financial Calendar - (Tentative and subject to change)

Financial year: 2009-10

Unaudited Financial Results for the quarter ending 30th June, 2009 July, 2009

Unaudited Financial Results for the quarter ending 30th September, 2009 October, 2009

Unaudited Financial Results for the quarter ending 31st December, 2009 January, 2010

Audited Financial Results for the year ending 31st March, 2010 June, 2010

Annual General Meeting for the year ending 31st March, 2010 September, 2010

Details of Book Closure 18th August, 2009 to 25th August, 2009 (both days inclusive)

Date of payment of Equity Dividend on and from 10th October, 2009

15. Listing on Stock Exchanges

Bombay Stock Exchange Limited (BSE)1st Floor, New Trading WingRotunda BuildingPhiroze Jeejeebhoy Towers, Dalal Street, FortMumbai - 400 001

National Stock Exchange of India Limited (NSE)"Exchange Plaza"Bandra-Kurla ComplexBandra (East), Mumbai - 400 051

The Company paid the annual listing fees for the year 2009-2010 in April 2009 to BSE and NSE.

16. Stock Code

Bombay Stock Exchange Limited : 502330

National Stock Exchange of India Limited : Symbol: APPAPER

Series : BE

ISIN (for Dematerialisation) : INE435A01028

17. The details of monthly high and low quotations of the Equity shares of the Company traded on the Stock Exchangesare given below:

a. Bombay Stock Exchange Limited

MonthShare Quotation Rs. BSE Sensex

High Low High Low

2008 April 97.65 71.65 17480.74 15297.96

May 93.70 76.40 17735.70 16196.02

June 82.00 67.50 16632.72 13405.54

July 77.95 64.10 15130.09 12514.02

August 83.90 64.15 15579.78 14002.43

September 84.90 64.60 15107.01 12153.55

October 70.95 40.55 13203.86 7697.39

November 67.30 41.45 10945.41 8316.39

December 54.25 37.95 10188.54 8467.43

2009 January 55.00 37.55 10469.72 8631.60

February 46.85 35.00 9724.87 8619.22

March 47.90 36.00 10127.09 8047.17

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b. National Stock Exchange of India Limited

Month Share Quotation Rs. S & P CNX NIFTY

High Low High Low

2008 April 96.00 70.50 5230.75 4628.75

May 93.90 77.55 5298.85 4801.90

June 82.70 68.05 4908.80 4021.70

July 77.80 64.00 4539.45 3790.20

August 84.70 64.30 4649.85 4201.85

September 94.00 55.65 4558.00 3715.05

October 73.00 35.55 4000.50 2252.75

November 67.80 42.00 3240.55 2502.90

December 52.00 38.70 3110.45 2570.70

2009 January 56.90 38.60 3147.20 2661.65

February 47.30 33.30 2969.75 2677.55

March 48.00 34.20 3123.35 2539.45

18. Registrar and Transfer Agents

Sathguru Management Consultants (Private) Limited

Plot No.15, Hindi Nagar, Punjagutta, Hyderabad - 500 034

Tel. No. +91 40 2335 0586, 2335 6507 & 2335 6975

Fax No. +91 40 4004 0554; E-mail: [email protected]

19. Share Transfer System

The Chairman approves the share transfers once in a fortnight. The average time taken for registering the share transfersis approximately 15 days from the date of receipt of request.

20. Distribution of Equity Shareholding as on 31st March, 2009

Nominal Value of Shareholders ValueEquity Shares Rs. Number % Rs. %

1 - 5000 8,289 88.96 1,02,09,840 3.97

5001 - 10000 503 5.40 38,72,190 1.50

10001 - 20000 242 2.60 35,17,550 1.37

20001 - 30000 80 0.86 20,49,060 0.80

30001 - 40000 48 0.51 17,34,770 0.67

40001 - 50000 39 0.42 18,30,150 0.71

50001 - 100000 48 0.51 34,13,110 1.33

100001 and Above 69 0.74 23,07,08,880 89.65

TOTAL 9,318 100.00 25,73,35,550 100.00

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Category of Equity Shareholders as on 31st March, 2009

Category No. of Shares held %

A. Indian Promoters & Promoters Group 1,30,54,113 50.73

B. Public Shareholdings:

1. Institutional Investors:

a. Mutual Funds, Financial Institutions,Banks and Insurance Companies 17,76,428 6.90

b. Foreign Institutional Investors 3,74,982 1.46

c. Foreign Financial Institutions 50,44,474 19.60

d. Foreign Banks 200 –

Sub-total 71,96,084 27.96

2. Non-Institutions:

a. Private Corporate Bodies 14,81,645 5.76

b. Indian Public 39,77,849 15.46

c. Non Resident Indians 20,324 0.08

d. Trusts 3,540 0.01

Sub-total 54,83,358 21.31

Total public shareholding (1+2) 1,26,79,442 49.27

Total (A+B) 2,57,33,555 100.00

21. Dematerialisation of shares as on 31st March, 2009

Depository Name No. of Shares dematerialised Percentage on Equity Share Capital

National Securities Depository Limited 2,12,98,402 82.77

Central Depository Services (India) Limited 38,83,396 15.09

Total 2,51,81,798 97.86

22. No GDRS, ADRs or Warrants have been issued by the Company.

23. Transfer of unclaimed dividend to Investor Education and Protection Fund

A sum of Rs.1,14,678 representing final equity dividend of the Company for the year 2000-2001 and Rs.2,100 representingunclaimed fractional amount relating to allotment of shares on amalgamation of Coastal Papers Limited with the Company,which remained unclaimed for seven years have been transferred in October, 2008 and January 2009 respectively to theInvestor Education and Protection Fund established by Central Government pursuant to Section 205C of the CompaniesAct, 1956.

24. Plant Locations

Unit:APPM Unit:CP

Rajahmundry - 533 105 Industrial Area, M.R.Palem - 533 126East Godavari District Near Kadiyam Railway Station,Andhra Pradesh Kadiyam Mandalam,

East Godavari District, Andhra Pradesh

25. Address for Correspondence from shareholders

Sathguru Management Consultants (P) Limited Secretarial DepartmentPlot No. 15, Hindi Nagar The Andhra Pradesh Paper Mills LimitedPunjagutta or Rajahmundry - 533 105Hyderabad - 500 034 East Godavari District,

Andhra Pradesh

26. E-mail ID for Investor Grievance Redressal: [email protected]

The Assistant Manager (Secretarial) will register the complaints and take necessary follow up action.

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Declaration by the Managing Director

ToThe Members ofThe Andhra Pradesh Paper Mills Limited

In compliance with the requirements of Clause 49 of the Listing Agreement with the Stock Exchanges relating to CorporateGovernance, I confirm that, on the basis of confirmations/declarations received, all the Directors and senior managementpersonnel of the Company have complied with the Code of Business Conduct and Ethics framed by the Company for thefinancial year ended 31st March, 2009.

Secunderabad M.K. Tara12th June, 2009 Managing Director

Auditors' Certificate on Corporate Governance

ToThe Members ofThe Andhra Pradesh Paper Mills LimitedRajahmundry.

We have examined the compliance of conditions of corporate governance by The Andhra Pradesh Paper Mills Limited, Rajahmundryfor the year ended 31st March, 2009, as stipulated in Clause 49 of the Listing Agreement of the Company with stock exchanges.

The compliance of conditions of corporate governance is the responsibility of the management. Our examination was limitedto procedures and implementation thereof, adopted by the Company for ensuring the compliance of the conditions of theCorporate Governance. It is neither an audit nor an expression of opinion on the financial statements of the Company.

In our opinion and to the best of our information and according to the explanations given to us, we certify that the Companyhas complied with the conditions of Corporate Governance as stipulated in the above mentioned Listing Agreement.

We further state that such compliance is neither an assurance as to the future viability of the Company nor the efficiency oreffectiveness with which the management has conducted the affairs of the Company.

For Brahmayya & Co., Chartered Accountants

C.V. Ramana RaoSecunderabad Partner31st July, 2009 Membership No. 018545

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d. In our opinion the Balance Sheet and Profit andLoss Account dealt with by this report comply withthe accounting standards referred to in Sub Section(3C) of Section 211 of the Companies Act, 1956with the exception of Accounting Standard 22, on"Accounting for Taxes on Income", referred to inNote No. 9 of Schedule 19 (II).

e. In our opinion and to the best of our informationand according to the explanations given to us,subject to not fully providing for deferred tax liabilityin accordance with Accounting Standard 22 issuedby the Institute of Chartered Accountants of India,referred to in Note No. 9 of Schedule 19 (II), thesaid accounts give the information required bythe Companies Act, 1956, in the manner sorequired and give a true and fair view, inconformity with the accounting principlesgenerally accepted in India:

i. in the case of the Balance Sheet of the stateof affairs of the Company as at 31st March2009;

ii. in the case of the Profit and Loss Account,of the profit for the year ended on that date;

iii. in case of the Cash Flow Statement, of thecash flows for the year ended on that date.

f. On the basis of written representations receivedfrom the Directors as on 31st March, 2009 andtaken on record by the Board of Directors, wereport that none of the directors is disqualified ason March 31, 2009 from being appointed as adirector in terms of clause (g) of sub-section (1)of Section 274 of the Act.


C.V. Ramana RaoSecunderabad Partner12th June, 2009 Membership No. 018545

ToThe Members ofThe Andhra Pradesh Paper Mills Limited,Rajahmundry.

1. We have audited the attached Balance Sheet of TheAndhra Pradesh Paper Mills Limited as at 31st March,2009, the Profit and Loss Account and also the CashFlow Statement for the year ended on that date annexedthereto. These financial statements are theresponsibility of the Company's management. Ourresponsibility is to express an opinion on these financialstatements based on our audit.

2. We have conducted our audit in accordance withauditing standards generally accepted in India. TheseStandards require that we plan and perform the auditto obtain reasonable assurance about whether thefinancial statements are free of material misstatement.An audit includes examining, on a test basis, evidencesupporting the amounts and disclosures in the financialstatements. An audit also includes assessing theaccounting principles used and significant estimatesmade by management, as well as evaluating the overallfinancial statement presentation. We believe that ouraudit provides a reasonable basis for our opinion.

3. As required by the Companies (Auditors' Report) Order,2003 issued by the Central Government of India in termsof sub-section (4A) of Section 227 of The CompaniesAct, 1956 (the 'Act') and on the basis of such checks aswe considered appropriate and according to theinformation and explanations given to us, we set outin the Annexure a statement on the matters specifiedin paragraphs 4 and 5 of the said Order.

4. Further to our comments in the Annexure referred toabove, we report that:

a. We have obtained all the information andexplanations, which to the best of our knowledgeand belief were necessary for the purposes of ouraudit.

b. In our opinion, proper books of account, as requiredby law have been kept by the Company so far asappears from our examination of such books.

c. The Balance Sheet and Profit and Loss Accountdealt with by this report are in agreement withthe books of account.

Auditors' Report

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i. a. The Company has maintained proper recordsshowing full particulars, including quantitativedetails and situation of fixed assets.

b. During the year under report, items of plant andmachinery have been physically verified by themanagement, though items of furniture, fixturesand equipment are required to be verified inaccordance with a phased programme ofverification, which, in our opinion, is reasonablehaving regard to the size of the Company and thenature of its assets. According to the informationfurnished to us, no material discrepancies havebeen noticed on such verification.

c. The fixed assets disposed off by the Companyduring the year do not form a substantial partthereof.

ii. a. Physical verification of inventory has beenconducted during the year by the management atreasonable intervals.

b. The procedures of physical verification of inventoryfollowed by the management are reasonable andadequate in relation to the size of the Companyand the nature of its business.

c. On the basis of our examination of the records ofinventory, we are of the opinion that the Companyis maintaining proper records of inventory. Thediscrepancies noticed on such verification betweenthe physical stocks and the book records were notmaterial.

iii. a. The Company has not granted any loans, securedor unsecured to Companies, firms or other partiesto whom the provisions of Section 301 of theCompanies Act, 1956 apply. Accordingly subclauses (b), (c) and (d) of clause (iii) of paragraph4 of the Order are not applicable.

b. The company has not taken any loans, secured orunsecured from companies, firms, or other partiesto whom the provisions of Section 301 of theCompanies Act apply. Accordingly, sub clauses (f),(g) and (h) of clause (iii) of paragraph 4 of theOrder are not applicable.

iv. In our opinion and according to the information andexplanations given to us, there are adequate internalcontrol procedures commensurate with the size of theCompany and the nature of its business with regard topurchase of inventory, fixed assets and sale of goods

and services. During the course of our audit, no majorweakness has been noticed in the internal controls.

v. a. According to the information and explanationsgiven to us, we are of the opinion that thetransactions that need to be entered into theregister maintained under Section 301 of theCompanies Act, 1956 have been so entered.

b. In our opinion and according to the informationand explanations given to us, the transactionsmade in pursuance of contracts or arrangementsentered in the register maintained under Section301 of the Companies Act, 1956 have been madeat prices which are reasonable having regard toprevailing market prices at the relevant time.

vi. In our opinion and according to the information andexplanations given to us, the Company has compliedwith the provisions of Sections 58A and 58AA of theCompanies Act, 1956 and the Companies (Acceptanceof Deposits) Rules, 1975 with regard to the depositsaccepted from public. No order has been passed by theCompany Law Board or National Company Law Tribunalor Reserve Bank of India or any court or any tribunal.

vii. In our opinion, the Company has an internal auditsystem commensurate with the size and nature of itsbusiness.

viii. We have broadly reviewed the books of account relatingto materials, labour and other items of cost maintainedby the Company pursuant to the rules made by theCentral Government for the maintenance of cost recordsunder Section 209(1) (d) of the Companies Act, 1956and we are of the opinion that prima facie the prescribedaccounts and records have been made and maintained.

ix. a. According to the records of the Company, theCompany is regular in depositing with appropriateauthorities undisputed statutory dues includingprovident fund, investor education and protectionfund, employees state insurance, income-tax,sales-tax, wealth-tax, custom duty, excise duty,service tax, cess, and other material statutory duesapplicable to it.

b. According to the information and explanationsgiven to us, no undisputed amounts payable inrespect of income tax, wealth tax, sales tax, customsduty, excise duty, service tax and cess were in arrearsas at 31st March 2009 for a period of more than sixmonths from the date they became payable.

ANNEXURE TO THE AUDITORS' REPORT REFERRED TO IN PARAGRAPH 3 OF OUR REPORT OF EVEN DATE

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Accordingly, the provisions of clause (xiv) of paragraph4 of the Order are not applicable to the Company.

xv. The Company has not given any guarantees for loanstaken by others from banks or financial institutions.Accordingly, the provisions of clause (xv) of paragraph4 of the Order are not applicable to the Company.

xvi. In our opinion, the term loans have been applied forthe purposes for which they were raised.

xvii. According to the information and explanations givento us and on overall examination of the Balance Sheetof the Company, we report that no funds raised on shortterm basis have been used for long term investment.

xviii.During the year the Company has not made anypreferential allotment of shares. Accordingly, clause4(xviii) of the Order is not applicable.

xix. The Company has created securities in respect of secureddebentures in earlier years. There are no debenturesoutstanding at the year end.

xx. During the year, the Company has not raised any moneyby way of public issue. Accordingly, the provisions ofclause (xx) of paragraph 4 of the Order are not applicableto the Company.

xxi. According to the information and explanations givento us, no fraud on or by the Company has been noticedor reported during the course of our audit.


C.V. Ramana RaoSecunderabad Partner12th June, 2009 Membership No. 018545

c. As at 31st March 2009, there have been nodisputed dues, which have not been deposited withthe respective authorities in respect of income-tax, wealth-tax, excise duty, service tax and cess,except disputed excise duty and service tax underCentral Excise Act of Rs.124.45 lakhs pendingbefore the Appellate Commissioner, Customs andCentral Excise, Rs.1124.82 Lakhs pending beforethe Customs, Central Excise and Service TaxAppellate Tribunal and Rs.37.02 Lakhs pendingbefore Hon'ble High Court of Andhra Pradesh,disputed Sales tax under Andhra Pradesh GeneralSales Tax Act and Central Sales Tax Act of Rs.33.82lakhs pending before Appellate DeputyCommissioner, Rs.62.77 lakhs pending before SalesTax Appellate Tribunal and Rs.132.67 lakhs pendingbefore Hon'ble High Court of Andhra Pradesh.

x. The Company has no accumulated losses and has notincurred cash losses during the financial year covered byour audit and the immediately preceding financial year.

xi. In our opinion and according to the information andexplanations given to us, the Company has not defaultedin repayment of dues to financial institutions, banks ordebenture holders.

xii. The Company has not granted any loans or advances onthe basis of security by way of pledge of shares,debentures and other securities. Accordingly theprovisions of clause (xii) of paragraph 4 of the Orderare not applicable.

xiii. In our opinion, the Company is not a chit fund or anidhi/mutual benefit fund/society. Accordingly, theprovisions of clause (xiii) of paragraph 4 of the Orderare not applicable to the Company.

xiv. In our opinion, the Company is not dealing in or tradingin shares, securities, debentures and other instruments.

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Rs.Lakhs

Schedule As at As at No. 31st March, 2009 31st March, 2008

SOURCES OF FUNDS

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

Shareholders' Funds

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

a. Capital 1 2573.36 2573.36

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

b. Reserves & Surplus 2 39224.40 39069.58

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

41797.76 41642.94

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

Loan Funds

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

a. Secured Loans 3 47477.79 43584.48

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

b. Unsecured Loans 4 8625.38 9608.57

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

56103.17 53193.05

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

Deferred Tax Liability 2165.55 2117.50

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

Total 100066.48 96953.49APPLICATION OF FUNDS

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

Fixed Assets 5

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

Gross Block 110436.77 103454.82

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○


○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

Net Block 75086.89 73343.91

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

Capital Work-in-Progress 15246.21 13046.28

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

90333.10 86390.19

Investments 6 1664.34 1664.34

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

Current Assets, Loans and Advances

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

Inventories 7 13524.85 10481.36

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

Sundry Debtors 8 3874.91 4587.70

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

Cash and Bank Balances 9 807.00 1329.50

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

Other Current Assets

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

Interest accrued on Deposits & Investments etc. 116.66 81.23

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

Loans and Advances 10 5577.93 5530.55

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

23901.35 22010.34

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

Less: Current Liabilities & Provisions 11 15975.02 13344.57

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

Net Current Assets 7926.33 8665.77

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

Miscellaneous Expenditure to the extent not written-off or adjusted 142.71 233.19

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

Total 100066.48 96953.49

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

Significant Accounting Policies and Notes on Accounts 19

As per our report of even date For and on behalf of the Board,

For Brahmayya & Co., E. Sai Ram L.N. BangurChartered Accountants Sr. Vice President (Finance & Accounts) & Chairman

Chief Finance Officer

C.V. Ramana RaoPartnerMembership No. 018545 C. Prabhakar M.K. Tara

Sr. Vice President (Corporate Affairs) & Managing DirectorSecunderabad Company Secretary12th June, 2009

Balance Sheet as at 31st March 2009

R


Rs.Lakhs

Schedule Year ended Year ended No. 31st March, 2009 31st March, 2008

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

INCOME

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

Sales 65733.39 62824.41

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

Less: Excise Duty 2938.54 4935.77

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

Net Sales 62794.85 57888.64

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

Increase/(Decrease) in Stocks 12 3086.52 1282.93

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

Other Income 13 1023.29 1325.88

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

Total 66904.66 60497.45

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

EXPENDITURE

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

Materials Cost 14 18857.55 19208.86

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

Staff Costs 15 5507.65 5258.87

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

Manufacturing Expenses 16 24907.10 23148.90

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

Other Expenses 17 5004.87 4671.26

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

Deferred Revenue Expenses Written off 90.48 176.42

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

Total 54367.65 52464.31

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

Profit before Interest, Depreciation and Tax (PBIDT) 12537.01 8033.14

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

Interest and Finance Charges 18 5048.96 1536.07

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

Profit before Depreciation and Tax (PBDT) 7488.05 6497.07

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○


○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

Profit before exceptional items 2076.86 1260.85

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

Exceptional items [Refer Note No.22 of Schedule 19 (II)] 111.87 705.52

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

Profit before Tax (PBT) 2188.73 1966.37

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

Provision for Taxation

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

Current tax 248.00 246.00

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

Earlier years’ tax 4.64 48.32

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

Deferred Tax 251.20 223.20

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

Fringe Benefit Tax 37.50 40.85

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

Less: MAT Credit [Refer Note No.17 of Schedule 19 (II)] (248.00) (246.00)

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

Profit after Tax (PAT) 1895.39 1654.00

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

Profit brought forward from Previous Year 10406.28 9219.35

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

Balance available for Appropriation 12301.67 10873.35

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

APPROPRIATIONS

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

Transfer to General Reserve 190.00 166.00

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○


○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○


○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

Balance carried to Balance Sheet 11961.01 10406.28

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

Total 12301.67 10873.35

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

Significant Accounting Policies and Notes on Accounts 19Earnings per Equity Share (Basic)/(Diluted) Rs. 7.37 6.44






Profit and Loss Account for the year ended 31st March 2009

R


Rs.Lakhs

31st March, 2009 31st March, 2008

Schedule 1Share Capital

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

Authorised

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

3,00,00,000 Equity Shares of Rs.10 each 3000.00 3000.00

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

5,00,000 Redeemable Cumulative

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

Preference Shares of Rs.100 each 500.00 500.00

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

Total 3500.00 3500.00

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

Issued, Subscribed and Paid Up

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

2,57,33,555 Equity Shares of Rs.10 each fully paid up 2573.36 2573.36

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

Total 2573.36 2573.36

9,98,500 Equity Shares of Rs.10 each were allotted as fullypaid up pursuant to a contract withoutpayment being received in cash

11,25,000 Equity Shares of Rs.10 each fully paid up werealloted for consideration other than cash asBonus Shares by capitalisation of reserves

5,80,000 Equity Shares of Rs.10 each were alloted to theshareholders of amalgamating Company,Coastal Papers Limited pursuant to the Scheme ofAmalgamation without payment being received in cash

Schedule 2Reserves & Surplus

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

Share Premium

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

As per last Balance Sheet 12649.33 10840.72

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

Add: Premium received on preferential allotment of equity shares – 12649.33 1808.61 12649.33

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

Capital Redemption Reserve 598.00 598.00

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

General Reserve

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

As per last Balance Sheet 15415.97 15467.56

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

Less: a. Adjusted towards long term foreign currency

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

monetary items (Refer Note No.3 of Schedule 19 (II) 1589.91 –

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

b. Transfer towards Provision for Leave Encashment

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

upto 31st March, 2007 (Net of deferred tax) – 217.59

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

Add: Transfer from Profit and Loss Account 190.00 14016.06 166.00 15415.97

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

Surplus in Profit and Loss Account 11961.01 10406.28

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

Total 39224.40 39069.58

Schedules forming part of the Balance Sheet

R


Rs.Lakhs


Schedule 3Secured Loans

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

Term Loans from Financial Institutions & Banks

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

a. Foreign Currency Loans 19909.56 19007.53

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

b. Rupee Loans 18938.68 16872.22

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

c. Buyers credit 6019.02 5635.25

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

Working Capital

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

From Banks 2610.53 2069.48

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

Total 47477.79 43584.48

1. Term loans from the financial institutions viz. International FinanceCorporation, Deutsche Investitions-und Entwicklungsgesellschaft mbH,State Bank of India, Canara Bank, and IDBI Bank Limited are secured bya pari passu first charge on all movable and immovable properties ofthe Company situated at Rajahmundry, Serinarasannapalem and Kadiyam[except Paper Machine No. 6 of Unit:APPM on which an exclusive chargewas created in favour of Centurion Bank of Punjab Limited (now mergedwith HDFC Bank Limited)] in accordance with respective loanagreements and subject to charge under Note No.2.

2. Working capital facilities from State Bank of India and Canara Bankare secured by hypothecation of raw materials, finished stock, stockin process, stores and spare parts etc. along with second charge onthe fixed assets of the Company situated at Rajahmundry,Serinarasannapalem and Kadiyam respectively.

3. 9,71,115 equity shares of Rs.10 each of the Company held by DigvijayInvestments Limited (Promoters’ group) have been pledged in favour ofIDBI Trusteeship Services Limited for the benefit of International FinanceCorporation and Deutsche Investitions-und Entwicklungsgesellschaft mbH.

Schedule 4Unsecured Loans

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

Long Term

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

i. Interest free Sales Tax Deferment Loan from Government of A.P. 2762.28 2621.85

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

ii. Security Deposits from dealers including interest due thereon 1317.49 1309.36

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

Short Term

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

Public Deposits 543.55 591.70

[including unclaimed deposits of Rs.15.90 Lakhs,(Previous Year - Rs.4.10 Lakhs)]

[Includes from Directors Rs.3.00 Lakhs,(Previous Year - Rs.3.00 Lakhs)]

[Repayable within one year Rs.438.05 Lakhs,

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

(Previous Year - Rs.324.75 Lakhs)]

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

Interest due thereon 2.06 0.60

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

From Banks 4000.00 5085.06

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

Total 8625.38 9608.57

R


Rs.Lakhs

Gross Block at Cost Depreciation Net Depreciated Block

Particulars As at Additions Sales/ As at As at For the On Sales/ As at As at As at1st April, Adjust- 31st March, 1st April, Year Adjust- 31st March, 31st March, 31st March,

2008 ments 2009 2008 ments 2009 2009 2008

Tangible

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

Land 247.83 11.37 0.03 259.17 – – – – 259.17 247.83

Roads &

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

Drainages 60.19 38.08 – 98.27 26.81 6.40 – 33.21 65.06 33.38

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

Buildings 4561.97 497.57a 6.97 5052.57 2122.41 194.15 7.05b 2309.51 2743.06 2439.56

Plant &

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

Machinery 93238.41 6430.73a 107.58 99561.56 24693.31 4724.04 128.03b 29289.32 70272.24 68545.10

Electrical

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

Installations 1813.30 80.35a 1.27 1892.38 780.04 147.41 4.35b 923.10 969.28 1033.26

Furniture &

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

Fixtures 1116.63 54.27 8.47 1162.43 842.03 94.79 8.05 928.77 233.66 274.60

Trucks &

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

Vehicles 482.52 31.29 37.39 476.42 292.53 51.00 24.74 318.79 157.63 189.99

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

Total 101520.85 7143.66 161.71 108502.80 28757.13 5217.79 172.22 33802.70 74700.10 72763.72

Intangible

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

Goodwill1 1933.97 – – 1933.97 1353.78 193.40 – 1547.18 386.79 580.19

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

Total 103454.82 7143.66 161.71 110436.77 30110.91 5411.19 172.22 35349.88 75086.89 73343.91

Capital Work-in-Progress

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

(at cost) 15246.21 13046.28(Refer Note 12of Schedule 19 II)

Total 103454.82 7143.66 161.71 110436.77 30110.91 5411.19 172.22 35349.88 90333.10 86390.19

Previous Year 96797.85 7786.96 1129.99 103454.82 25571.78 5236.22 697.09 30110.91 86390.19

1 Represents cost of acquisition of Coastal Papers Limited and its amalgamation.a Additions include capitalisation of foreign exchange fluctuation loss/(gain) on restatement of long term foreign currency

monetary items amounting to Rs.2682.83 Lakhs.b Adjustment includes Rs.55.18 Lakhs towards depreciation effect on foreign exchange fluctuation gain relating to 2007-08.

Schedule 5Fixed Assets

R


Rs.Lakhs


Schedule 6INVESTMENTS

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

Investments (Long Term) (At cost)

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

Non-Trade - Quoted

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

Equity Shares of Rs.10 each fully paid up:

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

– Tamilnadu Newsprint & Papers Limited (1,000 Shares) 1.10 1.10

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

– JK Paper Mills Limited (100 Shares) 0.04 0.04

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

– Seshasayee Paper and Boards Limited (100 Shares) 0.08 0.08

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

– The Sirpur Paper Mills Limited (100 Shares) 0.09 0.09

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

– Star Paper Mills Limited (100 Shares) 0.03 0.03

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

– Rama Newsprint & Papers Limited (25 Shares)

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

– Kedia Distillery Limited (2,12,800 Shares) 61.71 61.71

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

Equity Shares of Rs.2 each fully paid up:

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

– The West Coast Paper Mills Limited (500 Shares) 0.18 0.18

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

– Ballarpur Industries Limited (300 Shares) 0.05 0.05

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

Equity Shares of Re.1 each fully paid up:

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

– ITC Limited (1,500 Shares) 1.09 1.09

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

– Orient Paper and Industries Limited (1,000 Shares) 0.04 0.04

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

64.41 64.41

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

Non-Trade - Unquoted

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

i. 13,40,000 Shares of Rs.10 each fully paid up in

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

Andhra Pradesh Gas Power Corporation Limited 1538.37 1538.37

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

ii. Trust Securities

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

UTI Services Industries Fund-Dividend Plan-payout 183.27 183.27

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

3,21,759.706 Units of Rs.10 each

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

(Previously UTI-GSF Software - 4,93,231 Units of Rs.10 each)

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

iii. Equity Shares

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

30,000 Shares of Rs.10 each fully paid up in

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

Somar Granites Private Limited 3.00 3.00

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

1724.64 1724.64

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

Total of Quoted & Unquoted Investments 1789.05 1789.05

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

Less: Provision for diminution in the value of investments 124.71 124.71

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

Total 1664.34 1664.34

Book Value Market value Book Value Market value

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

Aggregate Value of

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

Quoted Investments 64.41 3.96 64.41 5.28

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

Unquoted Investments 1724.64 1724.64

R


Rs.Lakhs


Schedule 7Inventories

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

Stores, Chemicals, Components, Packing Materials,

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

Spare Parts, Building Materials, Loose Tools & Scrap 4419.78 4253.14

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

Raw Materials 2223.50 2677.97

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

Materials-in-transit/awaiting inspection 430.74 193.02

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

Work-in-Process 2030.35 1157.39

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

Finished Goods 4420.48 2199.84

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

Total 13524.85 10481.36

Schedule 8Sundry Debtors

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

Secured

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

Considered Good 633.08 914.78

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

Unsecured and outstanding for more than 6 months

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

Considered Good 70.04 75.85

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

Considered Doubtful 40.71 45.04

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

110.75 120.89

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

Other Debts - Considered Good 3171.79 3597.07

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

3282.54 3717.96

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

Less: Provision for Doubtful Debts 40.71 45.04

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

3241.83 3672.92

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

Total 3874.91 4587.70

Schedule 9Cash and Bank Balances

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

Cash on hand 6.15 15.15

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

Cheques on hand 47.15 0.36

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

With Scheduled Banks in Current Accounts 431.81 763.09

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

[including Rs.14.67 Lakhs on account of unclaimed

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

dividends (Previous Year - Rs.16.46 Lakhs)]

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

Deposit Accounts 165.94 273.64

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

Remittances-in-Transit 155.95 277.26

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

Total 807.00 1329.50

R


Rs.Lakhs


Schedule 10Loans, Advances and Deposits

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

(Unsecured, considered good)

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

Advances recoverable in cash or kind or for value to be received 2990.21 2508.82

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

Advance tax (Net of Provisions) – 19.31

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

MAT Credit Entitlement 1087.39 851.83

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

Deposits with Customs, Port Trust and Excise Authorities 418.80 851.06

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

Other Deposits 497.46 404.72

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

Claims receivable 584.07 894.81

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

Total 5577.93 5530.55

Schedule 11Current Liabilities and Provisions

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

Current Liabilities

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

Sundry Creditors - Capital 1804.80 1449.05

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

- Others1 11685.21 9316.26

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

Advances from Customers 322.70 284.94

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

Unclaimed Dividends2 14.67 16.46

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

Other Liabilities 848.70 615.18

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

Interest accrued but not due on Loans 794.18 1092.98

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

15470.26 12774.87

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

Provisions:

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

Leave Encashment 253.50 268.63

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

Gratuity 34.46 –

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

Income Tax (Net of prepaid taxes) 64.49 –

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

Fringe Benefit Tax (Net of prepaid tax) 1.65 –

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○


○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○


○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

Total 15975.02 13344.57

1 Includes Rs.28.07 Lakhs (since paid) (Previous Year Rs.78.09 Lakhs) dueto Micro Small and Medium Enterprises to the extent such parties havebeen identified from the available information and there are no MircoSmall and Medium Enterprises where the outstandings are due for morethan 45 days. Due to SSI units Rs.Nil

2 Amounts due and outstanding to be credited to Investor Education andProtection Fund Rs.Nil (Previous Year Rs.Nil)

R


Rs.Lakhs

Year ended Year ended31st March, 2009 31st March, 2008

Schedule 12Increase/(Decrease) in Stocks

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

Closing Stocks

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

a. Finished Goods 4420.48 2199.84

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

b. Work-in-Process 2030.35 1157.39

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

6450.83 3357.23

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

Opening Stocks

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

a. Finished Goods 2199.84 1163.43

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

b. Work-in-Process 1157.39 863.33

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

3357.23 2026.76

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

Increase/(Decrease) in Stocks 3093.60 1330.47

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

Adjustment for Excise Duty on Stocks (7.08) (47.54)

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

Total 3086.52 1282.93

Schedule 13Other Income

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

Income from Investments 5.74 32.01

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

Profit on sale of Investments – 0.02

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

Profit on sale of Fixed Assets 26.30 –

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

Miscellaneous Income 380.11 539.10

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

Net income from sale of Carbon Credits 211.72 –

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

Claims 9.10 459.68

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

Interest [(Income Tax deducted at source Rs.6.34 Lakhs) 173.15 76.48

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

(Previous Year Rs.5.87 Lakhs)]

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

Provisions no longer required 198.10 41.36

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

Sundry credit balances written back 19.07 177.23

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

Total 1023.29 1325.88

Schedules forming part of the Profit and Loss Account

R


Rs.Lakhs


Schedule 14Materials Cost

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

Raw Materials

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

Opening Stock 2677.97 3342.78

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

Add: Purchases 18403.08 18527.43

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

21081.05 21870.21

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

Less: Closing Stock 2223.50 2677.97

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

Consumption - Raw Materials 18857.55 19192.24

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

Cost of Trading goods – 16.62

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

Total 18857.55 19208.86

Schedule 15Staff Costs

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

Salaries, Wages & Bonus 4305.49 4173.60

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

Contribution to Provident and other funds 745.31 543.11

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

Workmen and Staff Welfare Expenses 456.85 542.16

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

Total 5507.65 5258.87

Schedule 16Manufacturing Expenses

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

Spare Parts, Components, Stores and Packing Materials consumed 17355.63 14699.00

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

Power & Fuel 6473.05 7063.89

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

Repairs & Maintenance - Buildings 141.09 153.94

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

- Machinery 792.03 1042.48

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

Others 145.30 189.59

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

Total 24907.10 23148.90

R


Rs.Lakhs


Schedule 17Other Expenses

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

Rent 138.86 113.65

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

Rates & Taxes 164.84 143.88

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

Insurance 339.66 415.89

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

Directors' Fees 10.40 4.40

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

Auditors' Remuneration

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

– Statutory Audit 7.00 7.00

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

– Tax Audit 1.00 1.00

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

– Certification/Management Services 5.09 3.45

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

– Reimbursement of Expenses 1.41 14.50 0.89 12.34

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

Cost Audit Fee 2.00 0.76

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

Donations 0.06 –

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

Commission and Discount on Sales 2312.91 2055.79

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

Forwarding, Transportation & Other Sales Expenses 1034.60 960.43

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

Research & Development Expenses 118.57 67.60

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

Miscellaneous Expenses 861.90 862.72

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

Loss on sale of Fixed Assets – 29.11

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

Irrecoverable Debts, Deposits and Advances written off/forfeited 4.33 4.18

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

Less: Transfer from Provision for Doubtful Debts (4.33) – – 4.18

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

Loss on Assets Discarded 6.57 0.51

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

Total 5004.87 4671.26

Schedule 18Interest and Finance Charges

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

Interest on Term Loans 3444.57 3089.71

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

[Excludes Rs.759.97 Lakhs capitalised

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○


○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

Interest on Deposits 176.06 150.13

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

Other Interest 0.83 27.04

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

Bank and Finance Charges 446.99 392.97

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

Exchange Rate (Gain)/Loss (Net) 980.51 (2123.78)

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

[Excludes Rs.181.68 Lakhs capitalised

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○


○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

Total 5048.96 1536.07

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classified as Intangible Assets. Only those assetshave been recognized as Intangible Assets, onwhich future economic benefit/s is/are probableand whose cost can be measured reliably.Assessment of probable future economic benefitshas been made by the management on reasonableand supportive assumptions.

8. Revenue Recognition

a. Sales are inclusive of excise duty, exportincentives and net of trade and quantitydiscounts and rebates.

b. Interest and dividend income frominvestments are accounted on accrual basis.

c. Insurance and other claims/refunds areaccounted for as and when admitted byappropriate authorities.

d. Income relating to Certified EmissionReduction points (CERs) granted by UnitedNations Framework Convention on ClimateChange (UNFCCC) on energy efficientmeasures are accounted as and when sold tooutside third parties.

e. Inter Division transfers are eliminated infinancial statements.

9. Employee Benefits

i. Defined Contribution Plans:

Employee benefits in the form ofSuperannuation Fund, ESIC and LabourWelfare Fund are considered as definedcontribution plans and the contributions arecharged to the Profit and Loss Account ofthe year when the contributions to therespective funds are due.

ii. Defined Benefit Plans:

Company's liabilities towards Provident Fund,Gratuity, Leave encashment are determinedbased on actuarial valuation using theprojected unit credit method as on the dateof the Balance Sheet.

iii. Actuarial gains/losses are immediately takento profit and loss account and are not deferred.

iv. Payments made under the VoluntaryRetirement Scheme are amortised to the Profitand Loss Account over its pay-back period.

10. Depreciation on Fixed Assets

a. Depreciation on Plant & Machinery ofUnits:APPM & CP and Buildings of Unit:CPare charged under straight line methodapplying the rates worked out in accordance

I. Accounting Policies1. Accounting Concepts

Financial Statements are prepared on accrual basisunder the historical cost convention and inaccordance with the accounting standardsspecified in Sub-Section 3(C)of Section 211 of theCompanies Act, 1956.

2. Fixed Assets

a. Fixed Assets are stated at cost lessaccumulated depreciation. Cost of acquisitionof fixed assets is net of CENVAT/VAT andinclusive of freight, duties, taxes, incidentalexpenses including interest on specificborrowings and pre-operative expenses asallocated.

b. Expenditure during construction/erectionperiod is included under Capital Work - in -Progress and allocated to the respective fixedassets on completion of construction/erection.

c. Goodwill is amoritsed over a period of 10 years.

3. Investments

Investments are stated at cost, inclusive of allexpenses relating to acquisition. Provision fordiminution in the market value of long-terminvestments is made, if in the opinion of themanagement such diminution is permanent innature.

4. Inventories

Inventories are valued at the lower of the cost(net of CENVAT/VAT Credit) or net realizable value(except scrap/waste which are valued at netrealizable value). Cost is computed on averagebasis. Finished Goods and Work in Process includecost of conversion and other costs incurred inbringing the inventories to their present locationand condition.

5. Borrowing Costs

Borrowing cost is charged to Profit and LossAccount except cost of specific borrowing foracquisition of qualifying assets which iscapitalised till the date of commercial use of theasset.

6. Impairment of Assets

The Company applies the test of impairment of itsassets as provided in Accounting Standard(AS) - 28

7. Intangible Assets

Assets those are identifiable, non-monetary innature and with no physical substance have been

Schedule 19Accounting Policies and Notes on AccountsAnnexure to and forming part of Balance Sheet as at and Profit and Loss Account for the year ended 31st March, 2009:

Schedules forming part of the Accounts

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with the provisions of Section 205 (2) (b) ofthe Companies Act, 1956 prevalent inrespective years of acquisition in respect ofitems acquired prior to 1st July, 1986 and inaccordance with Schedule XIV of theCompanies Act, 1956 in respect of itemsacquired after 1st July, 1986.

b. Depreciation on other fixed assets is chargedunder written-down value method inaccordance with Schedule XIV of theCompanies Act, 1956.

11. Deferred Revenue Expenditure

Expenditure other than expenditure on VRS(including expenditure on Research &Development) incurred upto 31st March, 2003 inrespect of which benefit is expected to flow intofuture periods, is amortised over the expectedperiod of benefit.

12. Foreign Currency Transactions

Foreign currency assets and liabilities covered byforward contracts are stated at the forward contractrates while those not covered by forward contractsare restated at rates ruling at the year end.

Exports/Imports are accounted at forward contractrates/exchange rates prevailing on the date oftransaction.

Exchange fluctuations relating to fixed assets isadjusted in the cost of the asset upto the time ofcommissioning or putting to use. Thereafter allsuch exchange fluctuations are recognised in theProfit and Loss Account.

However, exchange fluctuations arising from longterm currency monetory items relating toacquisition of depreciable capital assets from 1stApril, 2007 are added to/deducted from the costof the said assets as the case may be.

However, gain/loss on monetary items which arerepayable/receivable within 12 months from thereporting period was charged to Profit and LossAccount.

13. Financial Instruments

The Company uses derivative financial instrumentssuch as forward contracts, currency swap to hedgecertain currency exposures relating to the businessoperations of the Company present andanticipated. Generally such contracts are taken forexposures materializing in the next 12 months.

II. Notes on Accounts2008-09 2007-08

1. Estimated amount of contracts remaining to be executed on Capital

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

Account and not provided for (net of advances & Letters of Credit opened)

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

a. Mill Development Plan 2731.80 5464.60

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

b. Others 71.85 53.75

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

2. Contingent Liabilities

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

a. Unexpired Bank Guarantees and Letters of Credit 791.03 1314.55

b. Corporate guarantee given to Forest Department of State Government

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

of Andhra Pradesh (Net of Rs.100 lakhs deposited under protest) 1472.09 1472.09

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

c. Claims against the Company not acknowledged as debts 184.44 239.15

d. Demands raised by EPDC of AP Ltd. for surplus power supplied by 81.27 68.07APGPCL disputed by the Company. An amount of Rs.72.47 Lakhs paidunder protest, (Previous Year Rs.61.64 lakhs) is grouped underLoans & Advances. The appeal filed by APTRANSCO is pendingbefore Hon'ble Supreme Court in which other companies similarly

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

placed are made respondents.

e. Demands of statutory authorities disputed by the Company in

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

appeals with higher authorities in respect of:

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

i. Income Tax 239.43 565.62

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

ii. Central Excise & Service Tax 1536.34 667.51

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

iii. Sales Tax 234.94 216.25

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

iv. Vacant Land Tax 210.88 210.88

As against above demands an amount of Rs.706.10 lakhs (PreviousYear Rs.946.73 lakhs) paid under protest is included in Loans & Advances.In respect of items (b), (c), (d) & (e), the Company has been advised

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

by the Counsel that the demands are not sustainable in law.

Rs.Lakhs

R


Rs.Lakhs

3. The Company has opted for capitalizing the exchange differences arising onreporting of long term foreign currency monetary items which are related toacquisition of depreciable capital assets, in line with the Companies(Accounting Standards) Amendment Rules on Accounting Standard 11 notifiedby Government of India on 31st March 2009, which have become effectiveto the Company with effect from 1st April, 2007. Accordingly, the foreignexchange gain for the year 31st March, 2008 which have been earlierrecognized to the Profit and Loss Account of that year have been reversedby withdrawing Rs.1,589.91 lakhs (Net of depreciation and deferred tax ofRs.258.34 lakhs) from the General Reserve and crediting the same todepreciable capital assets.

The exchange losses on long term currency monetary items, related toacquisition of depreciable capital assets for the year of Rs.4,531.07 lakhshave been capitalised to depreciable capital assets. Consequently,depreciation for the year is higher by Rs.41.59 lakhs and the profit andgeneral reserve are higher by Rs.4,489.48 lakhs respectively.

As the entire exchange differences have been adjusted against the cost ofdepreciable capital assets there is no amount to be amortised and absorbed

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

before 31st March, 2011.

4. Diminution in value of investment held in UTI Service Industries Fund(formerly UTI-GSF software) is of Rs.141.90 lakhs against which provisionmade in earlier year of Rs.60 lakhs is available. In the opinion of themanagement, the balance diminution is temporary in view of the subsequent

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

market appreciation.

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

5. Employee benefits

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

Defined benefit plans

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

i. GratuityReconciliation of opening and closing balances of the present

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

value of the defined benefit obligation being gratuity

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

Obligations at period beginning 1789.15 1709.17

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

Service Cost 88.83 275.59

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

Interest on Defined benefit obligation 139.49 136.73

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

Benefits settled (expected) (101.25) (328.28)

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

Actuarial (gain)/loss (45.44) (4.07)

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

Past Service Cost – –

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

Obligations at period end 1870.78 1789.15

Defined benefit obligation liability as at the Balance Sheet

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

is wholly funded by the Company

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

Change in plan assets

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

Plans assets at period beginning, at fair value 1796.37 1715.86

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

Expected return on plan assets 101.40 137.27

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

Actuarial gain/(loss) (282.65) 99.78

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

Assets distributed on settlements – –

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

Contributions 322.44 171.74

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

Benefits settled (101.24) (328.28)

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

Plans assets at period end, at fair value 1836.32 1796.37

2008-09 2007-08

R


Rs.Lakhs

2008-09 2007-08

Reconciliation of present value of the obligation and the

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

fair value of the plan assets:

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

Closing PBO 1870.78 1789.15

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

Closing Fair value of plan assets 1836.32 1796.37

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

Closing Funded status – 7.22

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

Unrecognised actuarial (gains)/losses – –

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

Unfunded net Asset/(Liability) recognized in the Balance Sheet (34.46) 7.22

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

Expenses recognised in the Profit and Loss Account

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

Service cost 88.83 275.59

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

Interest cost 139.49 136.73

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

Expected return on plan assets (101.40) (137.27)

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

Actuarial (gain)/loss 229.98 (103.85)

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

Net gratuity cost 356.90 171.21

Description of the basis used to determine the overall expected rate ofreturn on assets including major categories of plan assets. The expectedreturn is calculated on the average fund balance based on the mix of

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

investments and the expected yield on them.

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

Actual return on plan assets

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

Assumptions

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

Interest rate 8.00% 8.00%

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

Discount factor 8.00% 8.00%

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

Estimated rate of return on plan assets 8.00% 8.00%

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

Salary increase 6.00% 6.00%

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

Attrition rate 2% to 5% 2% to 5%

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

Retirement age - Executives 60 years 60 years

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

Retirement age - Workers 58 years 58 years

ii. Reconciliation of opening and closing balances of the○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

present value of the defined benefit obligation being

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

Leave Encashment(Non funded)

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

Obligations at period beginning 268.63 –

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

Service Cost 27.07 –

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

Interest on Defined benefit obligation 16.24 –

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

Benefits settled (expected) (81.69) –

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

Actuarial (gain)/loss 23.25 –

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

Past Service Cost – –

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

Obligations at period end 253.50 –

Defined benefit obligation liability as at the Balance Sheet

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

is wholly funded by the Company

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

Change in plan assets

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

Plans assets at period beginning, at fair value

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

Expected return on plan assets

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

Actuarial gain/(loss)

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

Assets distributed on settlements

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

Contributions 81.69 –

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

Benefits settled (81.69) –

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

Plans assets at period end, at fair value – –

R


Rs.Lakhs

2008-09 2007-08

Reconciliation of present value of the obligation and the

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

fair value of the plan assets:

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

Closing PBO 253.50 –

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

Closing Fair value of plan assets – –

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

Closing Funded status 253.50 –

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

Unrecognised transitional liability – –

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

Unrecognised past service cost - non vested benefits – –

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

Unfunded net Asset/(Liability) recognized in the Balance Sheet 253.50 –

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

Expenses recognised in the Profit and Loss Account

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

Service cost 27.07 –

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

Interest cost 16.24 –

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

Expected return on plan assets – –

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

Actuarial (gain)/loss 23.25 –

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

Net liability towards leave encashment 66.56 –

Description of the basis used to determine the overall expected rate ofreturn on assets including major categories of plan assets. The expectedreturn is calculated on the average fund balance based on the mix of

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

investments and the expected yield on them.

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

Actual return on plan assets

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

Assumptions

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

Interest rate

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

Discount factor 7.13% –

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

Estimated rate of return on plan assets – –

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

Salary increase 2.00% –

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

Attrition rate 5.00% –

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

Retirement age - Executives 60 years –

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

Retirement age - Workers 58 years –

6. The Company operates in only one business segment of paper and paperboards of different varieties and there is no reportable geographical segmentto be reported.

R


7. Related Party Transactions

Related parties in terms of AS-18 issued by the Institute of Chartered Accountants of India

a. Promoters

i. Individuals

Shri Laxminiwas Bangur

Smt. Alka Bangur

Ms. Sheetal Bangur

Shri Shreeyash Bangur

Shri Yogesh Bangur

ii. Bodies Corporate

Digvijay Investments Limited

Amalgamated Development Limited

Apurva Export Private Limited

MB Commercial Company Limited

Maharaja Shree Umaid Mills Limited1

Mugneeram Ramcoowar Bangur Charitable & Religious Company

Placid Limited

Shree Krishna Agency Limited

The General Investments Company Limited

The Kishore Trading Company Limited

The Peria Karamalai Tea & Produce Company Limited1

The Swadeshi Commercial Company Limited1 No transactions during the year.

b. Key Management Personnel




Shri P.K.Suri, Director (Operations) (from 12th May, 2008)

c. Others - Enterprises in which Promoter Directors hold substantial interest

Samay Books Limited

R


Rs.Lakhs

Rs.Lakhs

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

8. Earnings per Share (EPS)

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

a. Net profit as per Profit and Loss Account 1895.39 1654.00

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

b. Weighted average number of Equity Shares

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

used as denominator for calculating EPS Nos 2,57,33,555 2,56,81,263

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

c. Earnings per Share

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

Basic Rs. 7.37 6.44

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

Diluted Rs. 7.37 6.44

9. The Company has been recognising Deferred Tax Liability atthe effective rate applicable for the respective years. Theapplicablity or otherwise of the effective rate instead of thestandard rate is a matter of reference in a writ petition pendingbefore the Hon’ble Calcutta High Court and the matter will bereviewed on disposal of the writ petition.

10. The Deferred Tax Liability as at 31st March, 2009 comprises ofthe following:

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

a. Deferred Tax Liability

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

i. Related to Fixed Assets 3540.51 3626.98

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

ii. Payments considered under Section 43B of I.T. Act. – 39.90

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

3540.51 3666.88

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

b. Deferred Tax Assets

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

i. Unpaid Interest, Taxes, Staff Benefits etc. 54.73 55.14

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

ii. Provision for Doubtful Debts, Investments etc. 13.25 13.74

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

iii. Deferred Revenue Expenses – 12.35

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

iv. Payments considered under Section 43B of I.T. Act. 7.26 –

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

v. Unabsorbed Depreciation 1299.72 1468.15

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

1374.96 1549.38

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

c. Deferred Tax Liability (Net) 2165.55 2117.50

2008-09 2007-08

Transactions carried out with related partiesNature of Transactions Promoters Key Others-Enterprises Relative of Total

Management in which Promoter KeyPersonnel Directors hold Management

substantial interest Personnel

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

Remuneration – 164.85 – – 164.85

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

– (104.64) – – (104.64)

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

Sale of Goods 499.82 – 6.08 – 505.90

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

(452.47) – (17.82) – (470.29)

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

Purchase of Goods – – 301.91 – 301.91

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

– – (289.79) – (289.79)

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

Expenses 3.19 – – – 3.19

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

(3.02) – – – (3.02)

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

Dividend 129.93 0.45 – – 130.38

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

(129.93) (0.47) – – (130.40)

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

Receivables as at 31st March 9.51 – – – 9.51

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

(11.53) – – – (11.53)

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

Payables as at 31st March – – 127.10 – 127.10

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

– – (80.75) – (80.75)

Figures in brackets relate to previous year.

R


Rs.Lakhs

2008-09 2007-08

11. According to technical assessment, there is no impairment inthe carrying cost of cash generating units of the Company interms of Accounting Standard 28 (AS-28) issued by the Instituteof Chartered Accountants of India.

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

12. Capital Work-in-Progress comprises of

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

Civil works under construction 1921.58 521.28

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

Plant under erection 12849.90 14909.33

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

Advance to suppliers/contractors 205.27 323.90

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

14976.75 15754.51

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

Unallocated Expenditure

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

Opening Balance 2203.88 2725.93

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

Incurred during the year

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

– Commitment and Loan/Equity syndication fee 343.27 735.75

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

– Insurance/Consultancy/Travelling/Others 700.29 418.10

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

– Interest during construction 982.16 887.18

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

– Start-up/trial run Expenses 192.46 –

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

– Pre-operating Expenses 24.58 –

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

4446.64 4766.96

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

Total Capital Work-in-Progress 19423.39 20521.48

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

Less: Capitalised during the year 4177.18 7475.20

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

Closing Capital Work-in-Progress 15246.21 13046.28

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

13. Miscellaneous Expenditure to the extent not written off or adjusted comprises of

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

payments under Voluntary Retirement Scheme 142.71 233.19

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

Total 142.71 233.19

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

14. The amounts shown under the following heads in Profit and Loss Account

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

are exclusive of amounts charged to other heads of account

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

a. Salaries and Wages 302.64 297.79

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

b. Rent 11.45 11.48

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

c. Rates and Taxes 3.69 2.34

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

d. Insurance 3.98 8.29

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

e. Miscellaneous Expenses 30.27 24.70

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

352.03 344.60

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

15. Managing/Whole-time Directors' Remuneration

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

Salary and Allowances 99.68 87.34

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

Contribution to Provident & Other Funds 25.61 14.90

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

Other perquisites 39.56 2.40

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

Total 164.85 104.64

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

16. Adjustments in respect of income and expenditure not relating to

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

the year, net debit (Previous Year - net debit) 25.58 0.18

17. Provision for income tax has been made in accordance with Section 115JB ofthe Income Tax Act, 1961. However, management expects that it would bein a position to pay normal tax within the period specified under the IncomeTax Act, 1961 and hence MAT credit has been recognised.

R


Rs.Lakhs

Installed Capacity Production

2008-09 2007-08 2008-09 2007-08

18. Quantitative Information in respect ofgoods manufactured and sold

a. Licensed, Installed Capacities

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

and Production

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

Class of Products MT MT MT MT

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

Pulp, Paper and Board1 1,74,000 1,74,000 1,77,748 1,80,681

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

MW MW Kwh Lakhs Kwh Lakhs

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

Generation of Electricity2 62.94 62.94 2078.38 1838.79

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

TPH TPH MT MT

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

Generation of Steam2 573 468 19,38,427 18,76,269

Licensed capacity not applicable in terms of Government of India's Notification. Installed capacities are as certified bythe Managing Director.

1 Represents finished production of paper and paper board. Production of pulp is not separately ascertained as pulp plantis an integral part of paper and paper board plant. Includes pulp production of 31,609 MT (Previous Year 34,867 MT)meant for external sales.

2 Total generation of electricity and steam are for internal consumption.

2008-09 2007-08

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

b. Sales and Stocks

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

Opening Stock MT 6,429 3,580

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

Sales MT 1,70,239 1,76,758

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

Closing Stock MT 13,127 6,429

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

c. Value of Sales and Stocks

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

Opening Stock 2199.84 1163.43

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

Sales 65733.39 62824.41

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

Closing Stock 4420.48 2199.84

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

d. Particulars of Sales & Purchases of Paper Traded:

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

i. Purchases MT – 61

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

– 16.62

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

ii. Sales MT – 61

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

– 23.76

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

e. Consumption of Raw Materials:

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

i. Quantities

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

a. Bamboo MT 25,962 43,222

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

b. Hardwood MT 5,08,828 4,25,092

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

c. Waste paper cuttings, wood pulp etc. MT 35,248 44,810

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

d. Rice straw, bagasse etc MT 12,944 16,041

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

ii. Values (including handling and feeding charges)

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

a. Bamboo 953.81 1422.44

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

b. Hardwood 12975.31 12638.57

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

c. Waste paper cuttings, wood pulp etc. 4779.17 4953.15

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

d. Rice straw, bagasse etc. 149.26 178.08

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

iii. Indigenous 14903.86 15784.22

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

iv. Imported 3953.69 3408.02

R


Rs.Lakhs

2008-09 2007-08

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

v. Percentage to total raw materials consumption

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

a. Indigenous % 79.03 82.24

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

b. Imported % 20.97 17.76

f. Consumption of stores, chemicals, components and spare parts:

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

i. Values (including duty, freight and handling expenses)

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

a. Indigenous 20554.61 19908.56

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

b. Imported 2126.82 1470.52

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

ii. Percentage of each to total consumption

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

a. Indigenous % 90.62 93.12

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

b. Imported % 9.38 6.88

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

g. Value of imports on CIF basis in respect of:

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

a. Capital Goods 15.99 6152.22

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

b. Raw Materials 3068.01 3277.83

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

c. Components, chemicals and spare parts 2010.18 1476.09

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

h. Earnings in foreign exchange in respect of export of paper 5405.08 4074.15

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

i. Dividend paid in foreign currency 13.75 13.75

19. The Company has imported certain capital goods for milldevelopment under EPCG scheme, availaing concessional rate ofcustoms duty in respect of which, the Company has an exportobligation of Rs.65,091 lakhs to be fulfilled over a period of8 years commencing from 2006-2007.

20. Expenditure in foreign currencies in respect of interest,Loan syndication fee, commitment charges,travelling, sales expenses etc. 1748.54 1840.71

21. a. Derivative instruments outstandings:

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

Currency Swaps

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

USD/CHF - Bought $ in Lakhs 23.00 223.00

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

USD/CHF - Sold $ in Lakhs – 200.00

b. Foreign currency exposure not hedged by derivative instrument:

Amount (Foreign Currency in Lakhs) Rs.Lakhs

Currency 2008-09 2007-08 2008-09 2007-08

I. Amount receivable in foreign currencyon account of the followingExports - Sale of Paper USD – 29.85 – 1192.59

AED 1.52 – 20.63 –II. Amounts payable in foreign currency

on account of the following1. Capital goods and services USD – – – –

EURO – – – 4.55SEK 8.99 8.99 55.65 55.65JPY – 213.00 – 75.51

2. Other goods and services USD 11.55 12.79 581.80 513.04

EURO – 0.02 – 1.50

3. Loans USD 392.50 490.54 19,909.56 25,061.08

4. Buyer's credit EUR 19.25 89.25 1,298.22 5,635.25

R


22. Exceptional items comprise of:

Accounting Standard - 30 on Financial instruments measurement andrecognition which has been recommended for implementation earlier thanthe scheduled year 2011, stipulates that loss on hedging and derivativeinstruments whether directly relating to business operations or otherwiseshould be recognised in the financial statements by adequate provision and/or disclosure. The Institute of Chartered Accountants of India has clarifiedthat any loss on unhedged derivative transactions should be recorded in thefinancial statement for the year ended 31st March 2008. Accordingly theCompany has provided for the Mark-to-Market (MTM) loss for the year ended31st March, 2008. The MTM on the outstanding derivatives, forward coversand reinstatement of foreign currency vendors, customers and EEFC accountsas on 31st March, 2009 has resulted in reducing earlier provisions made andaccordingly Profit and Loss Account has been credited by Rs.111.87 lakhs.

23. Clean Development Mechanism (CDM) Emission Reductions:

On account of energy efficiency measures undertaken by the Company duringthe period from June 2000 to December 2006, UNFCCC (in accordance with theregulations of United Nations body on environment) has approved the projectand accorded Certified Emission Reduction (CERs) points to the Company,which have been sold during the year and the income from the same has beencredited to the Profit and Loss Account, by grouping under Other Income.

24. The Board of Directors have recommended a dividend of Re.0.50 per share ofRs.10 each.

25. Previous year's figures have been regrouped wherever necessary.






R


Rs.Lakhs


○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

A. CASH FLOW FROM OPERATING ACTIVITIES

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

Net Profit after Exceptional Items and before Tax 2188.73 1966.37

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

Adjustments for:

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○


○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

Claims,Bad Debts, Irrevocable Advances Written off & deposits forfeited – 4.18

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

Miscellaneous Expenditure written off 90.48 176.42

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

Loss on Discarded Assets 6.57 0.51

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

Provision for leave encashment & Gratuity 19.33 23.24

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

(Profit)/Loss on Sale of Investments – (0.02)

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

(Profit)/Loss on Sale of Assets (26.30) 29.11

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

Income from Investments (5.74) (32.01)

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

Interest Paid 5048.96 1536.07

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

Interest Received (173.15) (76.48)

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

Operating Profit before Working Capital changes 12560.07 8863.61

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

Adjustments for:

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

Trade and other Receivables 668.49 (1694.42)

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

Inventories (3043.49) (1535.06)

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

Trade Payables 3050.86 513.38

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

Payments made under VRS – (58.95)

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

Cash Generated from Operations 13235.93 6088.56

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

Interest Paid (5048.96) (1536.07)

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

Income Tax Paid (192.23) (351.96)

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

Net Cash from Operating Activities 7994.74 4200.53

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

B. CASH FLOW FROM INVESTING ACTIVITIES

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

Purchase of Fixed Assets (4756.98) (7786.96)

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

Capital Work-in-Progress (1816.16) (350.08)

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

Sale of Fixed Assets 50.82 403.26

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

Sale of Investments – 0.05

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

Income from Investments 5.74 32.01

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

Interest Received 173.15 76.48

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

Net Cash used in Investing Activities (6343.43) (7625.24)

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

C. CASH FLOW FROM FINANCING ACTIVITIES

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

Issue of Share Capital – 191.39

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

Proceeds from Borrowings 5314.71 14154.77

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

Repayment of Borrowings (7187.45) (12071.43)

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

Dividends paid including tax on dividend (301.07) (301.07)

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

Share Premium Received – 1808.61

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

Net Cash used in Financing Activities (2173.81) 3782.27

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

Net Increase/(Decrease) in Cash and Cash Equivalents (522.50) 357.56

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

Cash and Cash Equivalents as at 1st April, 2008 1329.50 971.94

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

Cash and Cash Equivalents as at 31st March, 2009 807.00 1329.50






Cash Flow Statement for the year ended 31st March 2009

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C.V. Ramana RaoPartnerMembership No. 018545 C. Prabhakar M.K. TaraSecunderabad Sr. Vice President (Corporate Affairs) & Managing Director12th June, 2009 Company Secretary

Balance Sheet Abstract and Company's General Business ProfileI. Registration Details

Registration No. 0 0 1 0 0 8 State Code 0 1

Corporate Identification No. L 2 1 0 1 0 A P 1 9 6 4 P L C 0 0 1 0 0 8

Balance Sheet Date 3 1 0 3 2 0 0 9

II. Capital raised during the year (Amount in Rs.thousands)

Public Issue N I L Rights Issue N I L

Bonus Issue N I L Private Placement N I L

III. Position of mobilization and deployment of funds (Amount in Rs.thousands)

Total Liabilities 1 0 0 0 6 6 4 8 Total Assets 1 0 0 0 6 6 4 8

SOURCES OF FUNDS

Paid-Up Capital 2 5 7 3 3 6 Reserves & Surplus 3 9 2 2 4 4 0

Deferred Tax Liability 2 1 6 5 5 5 Unsecured Loans 8 6 2 5 3 8

Secured Loans 4 7 4 7 7 7 9

APPLICATION OF FUNDS

Net Fixed Assets 9 0 3 3 3 1 0 Investments 1 6 6 4 3 4

Net Current Assets 7 9 2 6 3 3 Misc Expenditure 1 4 2 7 1

Accumulated Losses N I L

IV. Performance of Company (Amount in Rs.thousands)

Turnover including 6 3 8 1 8 1 4 Total Expenditure 6 1 6 2 9 4 1other income

+ / - Profit/Loss before Tax + / - Profit/Loss after Tax

+ 2 1 8 8 7 3 + 1 8 9 5 3 9

Earnings per Share in Rs. 7 . 3 7 Dividend Rate % 5

V. Generic Names of Principal Products/Services of Company

Item Code No.(ITC Code) 4 8 0 2 - 9 9

Product Description C R E A M W O V E - M A P L I T H O


Product Description K R A F T P A P E R


Product Description U N C O A T E D P A P E R B O A R D


Product Description N E W S P R I N T

Balance Sheet Abstract

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NOTICE is hereby given that the 45th Annual General meeting

of the Members of The Andhra Pradesh Paper Mills Limited

will be held on Friday, the 25th day of September, 2009 at

3.00 p.m. at Sri Venkateswara Anam Kala Kendram,

Rajahmundry - 533 104, East Godavari District, Andhra

Pradesh to transact the following business:

ORDINARY BUSINESS

1. To consider and adopt the Balance Sheet as at

31st March, 2009, Profit and Loss Account for the year

ended as on that date and the Reports of the Directors

and Auditors thereon.

2. To declare dividend on the Equity Shares for the year

ended 31st March, 2009.

3. To appoint a Director in place of Shri N. Srinivasan

who retires by rotation under Article 142 of the Articles

of Association of the Company and is eligible for

re-appointment.

4. To appoint a Director in place of Shri R.C. Sarin who

retires by rotation under Article 142 of the Articles of

Association of the Company and is eligible for

re-appointment.

5. To consider and, if thought fit, to pass, with or without

modification, the following Resolution as an Ordinary

Resolution:

"RESOLVED THAT pursuant to the provisions of Section

224 and other applicable provisions, if any, of the

Companies Act, 1956, the retiring Auditors, Messrs

Brahmayya & Co., Chartered Accountants,

Visakhapatnam, be and are hereby re-appointed as

Auditors of the Company to hold office from the

conclusion of this Meeting until the conclusion of the

next Annual General Meeting of the Company at a

remuneration of Rs.7.00 lakhs net of service tax plus

reimbursement of traveling and out-of-pocket

expenses."

SPECIAL BUSINESS

6. To consider and if thought fit, to pass, with or without

modification, the following Resolution as an Ordinary

Resolution:

"RESOLVED THAT in accordance with the provisions of

Sections 16, 94 and all other applicable provisions, if

any, of the Companies Act, 1956 (including any statutory

modification(s) or re-enactment thereof, for the time

being in force, and as may be enacted from time to

time), the authorised share capital of the Company be

and is hereby increased from Rs.35,00,00,000 (Rupees

Thirty five crore only) divided into 3,00,00,000 Equity

Shares of Rs.10 each and 5,00,000 Redeemable

Cumulative Preference Shares of Rs.100 each to

Rs.45,00,00,000 (Rupees Forty five crore only) divided

into 4,00,00,000 equity shares of Rs.10 each and

5,00,000 Redeemable Cumulative Preference Shares of

Rs.100 each.

FURTHER RESOLVED THAT the existing Clause V of

Memorandum of Association of the Company relating

to Share Capital be and is hereby altered by deleting

the same and substituting in its place and stead the

following as a new Clause V:

The Authorised Capital of the Company is


into 4,00,00,000 Equity Shares of Rs.10 each and


Rs.100 each with a power to increase or reduce or modify

the said capital and to divide the shares in the capital

for the time being into several classes and to attach

thereto respectively such preferential, deferred,

qualified or special rights, privileges or conditions as

may be determined by or in accordance with the Articles

of Association of the Company and to vary, modify,

amalgamate or abrogate any such rights, privileges or

conditions in such manner as may for the time being

be provided by the Articles of Association of the

Company."

7. To consider and if thought fit, to pass with or without

modification the following Resolution as a SpecialResolution:

"RESOLVED THAT pursuant to Section 31 and other

applicable provisions, if any, of the Companies Act, 1956

(including any statutory modification(s) or re-enactment

thereof, for the time being in force, and as may be

enacted from time to time), the Article 6 of the Articles

of Association of the Company be and is hereby altered

by deleting the same and substituting in its place and

stead the following as a new Article 6:

Notice

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The Authorised Capital of the Company is


into 4,00,00,000 Equity Shares of Rs.10 each and


Rs.100 each.

The said 5,00,000 Redeemable Cumulative Preference

Shares of Rs.100 each shall carry the dividend as may

be determined by the Board of Directors from time to

time and shall be issued in terms of Sections 80 and

80A and other applicable provisions of the Companies

Act, 1956, if any (including any statutory modification

or re-enactment thereof)."

8. To consider and, if thought fit, to pass with or without

modification the following Resolution as a SpecialResolution:

"RESOLVED THAT pursuant to the provisions of Section

81 and other applicable provisions, if any, of the

Companies Act, 1956 (including any statutory

modification(s) or re-enactment thereof, for the time

being in force, and as may be enacted from time to

time), and the provisions in the Memorandum and

Articles of Association and the Listing Agreements

entered into by the Company with the stock exchanges

where the shares of the Company are listed and the

prevailing Guidelines of Securities and Exchange Board

of India and subject to such approvals, consents,

permissions or sanctions as may be necessary and

subject to such conditions and modifications as may

be prescribed or imposed by the Authorities while

granting such approvals and sanctions and which may

be agreed to by the Board of Directors (hereinafter

referred to as "the Board", which term shall be deemed

to include any Committee(s) of the Board for the time

being, exercising the powers conferred on the Board),

at its sole discretion, the approval of the Members of

the Company be granted to the Board to issue, offer

and allot 70,18,242 Equity Shares of the face value of

Rs.10 (Rupees Ten only) each for cash at a premium of

Rs.40 per share in the ratio of 3:11 i.e., three (3) equity

shares for every eleven (11) Equity Shares held on rights

basis to the shareholders of the Company together with

one detachable warrant for every one Equity Share

allotted to the shareholders on rights basis, convertible

into one (1) Equity Share of face value of Rs.10 each

for cash at a premium of Rs.40 per share in one or more

tranches and the said shares and warrants shall be

offered to the Members of the Company whose names

will appear on the Register of Members of the Company

in respect of the Equity Shares held in physical form

and to those Members whose names will appear as

beneficial owners as per the list furnished by the

National Securities Depository Limited, and Central

Depository Services (India) Limited, in respect of the

Equity Shares held in electronic form on such date as

the Board may determine on the following terms and

conditions:

a. The amount of Rs.50 per share (Rs.10 per share

on share capital account and Rs.40 per share on

share premium account) be called from the

applicants in such manner as the Board of Directors

may determine.

b. The shareholders are entitled to renounce only

the shares offered to them in full or part thereof

in favour of any person who may or may not be a

shareholder of the Company.

c. The unoffered or unsubscribed portion, if any, of

the above mentioned issue will be disposed of by

the Board as it may think most beneficial to the

Company and the Board is authorised accordingly.

d. The new Equity Shares under the above said rights

issue and upon conversion of detachable warrants

into Equity Shares to be issued shall be subject to

Memorandum and Articles of Association of the

Company and shall rank pari passu in all respects

with the existing fully paid up Equity Shares of

the Company.

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1. A MEMBER ENTITLED TO ATTEND AND VOTE AT THIS ANNUAL

GENERAL MEETING IS ENTITLED TO APPOINT A PROXY TO

ATTEND AND VOTE INSTEAD OF HIMSELF AND THE PROXY NEED

NOT BE A MEMBER OF THE COMPANY. THE PROXY FORM DULY

COMPLETED MUST REACH THE REGISTERED OFFICE OF THE

COMPANY AT LEAST FORTY EIGHT HOURS BEFORE THE

COMMENCEMENT OF THE MEETING.

2. The Explanatory Statement pursuant to Section 173(2)of the Companies Act, 1956 in respect of Item Nos. 6 to8 is annexed hereto.

3. The Register of Members and Share Transfer Books ofthe Company will remain closed from 18th August, 2009to 25th August, 2009 (both days inclusive).

4. Securities and Exchange Board of India (SEBI) informedthat trading in equity shares of the Company would becompulsory in dematerialized form by all the investorswith effect from 28th August, 2000. The Company hadentered into agreements in March, 2000 with NationalSecurities Depository Limited (NSDL) and CentralDepository Services (India) Limited (CDSL). Memberscan dematerialize their Equity Shares in the Companythrough their Depository Participant(s). The ISIN ofEquity Shares is INE435A01028.

5. Dividend, as recommended by the Board, if declared, at

this Annual General Meeting will be payable on and

from 10th October, 2009, to those Members whose names

appeared in the Company's Register of Members as on

17th August, 2009. In respect of shares held inelectronic form, the dividend will be payable on the

basis of beneficial ownership as per the details furnishedby NSDL and CDSL as on that date for this purpose.Members holding shares in electronic form may pleasenote that their bank account details as furnished bytheir depositories to the Company will be printed on thedividend warrants and the Company will not entertainany direct request from such Members for deletion/changein such bank details. Members who wish to change theirbank account details are advised to intimate to theirDepository Participants (DPs) about such change withcomplete details of bank accounts.

6. Members holding shares in physical form are requestedto notify any change in their address immediately tothe Registrars/Company and those Members holdingshares in electronic form should inform change in theiraddress to their Depository Participant(s).

7. Members are requested to bring their copies of AnnualReport to the Meeting.

8. As per provisions of the amended Companies Act, 1956facility for making nomination is available to theMembers in respect of the shares held by them inphysical form. The Members holding shares in physicalform can download the nomination form asprescribed under the Companies Act, 1956 from ourWebsite: www.andhrapaper.com. In respect of sharesheld in electronic form, the nomination should berecorded with the respective Depository Participants.The Company would not accept any nomination inrespect of the shares held in electronic form.

9. ECS Mandate form is also placed on our website.Interested Members can download this form from thewebsite.

Notes

e. The offer of the Equity Shares and warrants as

aforesaid shall be issued on such other terms and

conditions as the Board may determine and the Board

be and is hereby authorised to finalise the same.

FURTHER RESOLVED THAT for the purpose of giving effect

to this Resolution, the Board be and is hereby authorised

on behalf of the Company to do and perform all such

acts, deeds, matters and things as it may in its absolute

discretion deem necessary, proper or desirable or as

may be incidental or ancillary and to settle all questions,

difficulties or doubts that may arise in regard to such

issue or allotment in order to give effect to this

Resolution without being required to obtain any further

consent or approval of the Members or otherwise to the

end and intent that they shall be deemed to have given

approval thereto expressed by the authority of this

Resolution."

By Order of the BoardFor The Andhra Pradesh Paper Mills Limited

C. PrabhakarSr. Vice President (Corporate Affairs) &

Company SecretaryRegistered Office:Rajahmundry - 533 105East Godavari District,Andhra Pradesh5th August, 2009

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Name

Qualification

Past experience andexpertise in specificfunctional areas

Date of appointment onthe Board of theCompany

Name(s) of othercompanies in whichdirectorships held (asper Sections 275 and278 of the CompaniesAct, 1956)

Name(s) of otherCompanies in whichCommitteeMembership(s)/Chairmanship(s) held(as per Clause 49 of theListing Agreement

No. of shares held inthe Company

Status

Shri N. Srinivasan

Chartered Accountant

He has more than 4 decades of experience inthe field of finance and accounting. He wasassociated with Fraser & Ross as partner formore than 35 years. He was the past Chairmanof Southern India Regional Council and CentralCouncil Member of the Institute of CharteredAccountants of India. He was also DeputyPresident of the Associated Chambers ofCommerce & Industry, Chairman of the MadrasChamber of Commerce and Industry and pastPresident of the Indo-Australian Chamber ofCommerce.

4th September, 1998

1. United Breweries (Holdings) Limited2. McDowell Holdings Limited3. UB Engineering Limited4. Tractors and Farm Equipment Limited5. India Cements Capital Limited6. Amco Batteries Limited7. The United Nilgiri Tea Estates Company

Limited8. Gati Limited9. Ador Fontech Limited10. Tafe Motors and Tractors Limited11. Essar Shipping Ports & Logistics Limited12. Best & Crompton Engineering Limited13. The India Cements Limited, and,14. Redington (India) Limited

Audit Committee Chairman ofa. United Breweries (Holdings) Limitedb. Gati Limitedc. McDowell Holdings Limitedd. Tractors and Farm Equipment Limited, and,e. Tafe Motors and Tractors Limited

Audit Committee Member ofa. India Cements Capital Limitedb. Amco Batteries Limitedc. Essar Shipping Ports & Logistics Limited, and,d. The India Cements Limited

Nil

Independent Director

Shri R.C. Sarin

Business Management from UK

He was associated with:

a. ITC for 26 years in different capacitiesincluding Director and DeputyChairman on their Board and also theChairman of Bhadrachalam PaperBoards Limited.

b. Voltas for 4 years as President andChief Executive.

c. Carrier Aircon Limited for 17 yearsand the founder Chairman of CarrierRefrigeration Private Limited.

24th January, 2006

Nil

Nil

Nil

Independent Director

10. INFORMATION REQUIRED UNDER THE LISTING AGREEMENT

As required under the Listing Agreement, the particulars of the Directors who are proposed to be reappointed are givenbelow:

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Explanatory Statementpursuant to Section 173 (2) of the Companies Act, 1956

Item Nos. 6 & 7

As the Company proposes to raise further equity share capitalfor meeting normal capital expenditure and long term workingcapital requirements, it is necessary to increase the presentAuthorised Capital which stands at Rs.35 crore.

It is, therefore, proposed to increase the present AuthorisedCapital from Rs.35 crore to Rs.45 crore keeping in view therequirements in future. The amendment to Clause V of theMemorandum of Association is consequential in nature.Similarly, alteration of Article 6 of the Articles of Associationof the Company is also consequent upon increase inAuthorised Share Capital.

The Board recommends these Resolutions for approval bythe Members.

None of the Directors of the Company is in any way concernedor interested in these Resolutions.

Item No. 8

In order to meet normal capital expenditure and long termworking capital requirements, it is proposed to raise furtherequity by way of Rights Issue in the ratio of 3:11 (threeEquity Shares for every eleven Equity Shares held by theshareholders) together with one detachable warrant for everyEquity Share allotted under the rights issue, which will beconvertible into Equity Shares on exercise of option by thewarrant holders.

Subject to the provisions contained in the Letter of Offer,the Articles of Association of the Company and the approval

of the stock exchanges, the Board will proceed to allot onedetachable warrant for every one Equity Share allotted underthe rights issue. The detailed terms of conversion of warrantsinto Equity Shares will be finalised in consultation with theLead Manager(s) and mentioned in the Letter of Offer.

Accordingly, the consent of the Members is being sought inaccordance with Section 81 and other applicable provisionsof the Companies Act, 1956 and in terms of the provisions ofthe Listing Agreement executed by the Company with thestock exchanges where the Company's shares are listed.

The Board recommends this Resolution for approval by theMembers.

The Directors of the Company may be deemed to be concernedor interested to the extent they may be entitled to the shareswhich may be offered to them on Rights basis or otherwise.

By Order of the BoardFor The Andhra Pradesh Paper Mills Limited

C. PrabhakarSr. Vice President (Corporate Affairs) &

Company SecretaryRegistered Office:Rajahmundry - 533 105East Godavari District,Andhra Pradesh5th August, 2009

Forward looking statements

In this Annual Report we have disclosed forward looking information to enable investors to comprehend

our prospects and take informed investment decisions. This report and other statements - written and

oral - that we periodically make, contain forward looking statements that set out anticipated results

based on the management’s plans and assumptions. We have tried wherever possible to identify such

statements by using words such as ‘anticipate’, ‘estimate’, ‘expects’, ‘projects’, ‘intends’, ‘plans’, ‘believes’,

and words of similar substance in connection with any discussion of future performance.

We cannot guarantee that these forward looking statements will be realised, although we believe we

have been prudent in assumptions. The achievement of results is subject to risks, uncertainties and

even inaccurate assumptions. Should known or unknown risks or uncertainties materialise, or should

underlying assumptions prove inaccurate, actual results could vary materially from those anticipated,

estimated or projected. Readers should bear this in mind.

We undertake no obligation to publicly update any forward looking statements, whether as a result of

new information, future events or otherwise.

Concept, Research, Design & ProductionCAPRICORN ASSOCIATES

Hyderabad

2MESSAGE FROMTHE CHAIRMAN

Powering theFuture

4FROM THE DESK OFTHE MANAGINGDIRECTOR

Review ofOperations

6

Powering theFarmers

8

Working forcleanenvironment

Powering the FutureAPPM is one of the most cost effective producerof quality paper. The Company not only reducedthe use of fossil fuel, but has also startedgenerating and selling power to the state gridfrom June 2009.

The cover captures the main activities of theoperations with an underlying concern for power.

11

The teamdoes it

12

R&D -the linkbetweenproduct andcustomer

14

Powering thegrowthdrivers

15

ManagementDiscussion &Analysis

27

Five Years ata Glance

28

Board ofDirectors

29

CorporateInformation

30

Directors'Report

36

Report onCorporateGovernance

45

Auditors'Report

48

BalanceSheet

49

Profit andLoss Account

C O N T E N T S

70

Cash FlowStatement

72

Notice ofAnnualGeneralMeeting

Pleasure in the job,puts perfection in the work.

– Aristotle



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The Andhra Pradesh Paper Mills Limitedwww.andhrapaper.com

Corporate Office:

501 - 509, Swapnalok Complex, 5th Floor92/93, S.D. Road, Secunderabad - 500 003, India



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the andhra pradesh paper mills limited · 2016-02-25 · the andhra pradesh paper mills limited...

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