అకౌంట్స్ గమనికలుChadha Papers Ltd.

Mar 31, 2025

(i) The company has impaired its investments and hence value of investments is written down by the amount equal to the impairment loss which is recognized in the income statement of F.Y. 2021-22.

(ii) OBC bank merged with PNB. The company have share certificate of PNB and share certificate No. is 21995.

(iii) Gold bonds not in the name of the company as bonds were purchased in the name of whole time director of the company.

(iv) The company has impaired its investment and hence value of investment is written down by the amount equal to the impairment loss which is recognized in the Statement of Profit and Loss amounting Rs. 444.89 Lakhs in F.Y. 2020-21 and Rs. 300.00 Lakhs in F.Y. 2021-22

(i) The company has sold the investment against which the company received an advance. However, the shares can not be transferred in view of the agreement with the President of India, acting through the Secretary and Commissioner, Department of Transport, Government of National Capital Territory of Delhi and ,therefore, the sale has not yet been recognised. (Refer Note no. 25)

a) Terms/ rights attached to equity shares

The company has only one class of equity shares having a par value of Rs.10 per share. Each shareholder is eligible to dividend, proportionate to the shares held as and when proposed by the board of directors & allowed by the shareholders in Annual General Meeting for one vote per share held.

The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting. In the event of liquidation, the equity shareholders are eligible to receive the remaining assets of the Company after distribution of all preferential amounts, in proportion to their shareholding.

18 Other equity (Refer statement of change in equity)

a) Capital Redemption Reserve: (Refer statement of change in equity)

b) Retained Earnings: This reserve represents the cumulative profits of the Company and effects of remeasurement of defined benefit obligations. This reserve can be utilized in accordance with the provisions of the Companies Act, 2013.

fi) Redeemable preference Share Capital:

The company has redeemed preference shares of Rs 500.00 Lakhs (Previous year Rs. 3,250.00 Lakhs ). The Board of Directors of the company with the concurrance of the shareholders have resolved to modify the terms of redemption of the balance of Rs. 5,121.42 Lakhs outstanding as at the end of the year so as to make it redeemable on or before March 31, 2033 in place of redeemable in two tranches of 2,876.61 Lakhs and 2,744.81 lakhs by March 31, 2029 and March 31, 2030 respectively.

fii) ICICI- ICB Loan

Commercial vehicle Loan for Vehicle is secured by way of hypothecation of the respective vehicle, carrying interest @ 9.00% p.a. The loan is repayable in 36 instalments from July, 2023 @ Rs. 0.86 lakhs per month (including interest).

fiii) HDFC vehicle loan

fa) Ultra Light Commercial Vehicle

Commercial vehicle Loan for Vehicle is secured by way of hypothecation of the respective vehicle, carrying interest @ 9.01% p.a. The loan is repayable in 60 instalments from February 2024 @ Rs. 0.15 Lakhs per month (including interest).

fb) Light Commercial Vehicle

Commercial vehicle Loan for Vehicle is secured by way of hypothecation of the respective vehicle, carrying interest @ 9.01% p.a. The loan is repayable in 60 instalments from February 2024 @ Rs. 0.34 Lakhs per month (including interest).

fc) Commercial Vehicle-ICB Loan

Commercial vehicle Loan for Vehicle is secured by way of hypothecation of the respective vehicle, carrying interest @ 9.01% p.a. The loan is repayable in 60 instalments from August 2024 @ Rs. 0.60 Lakhs per month (including interest).

fd) Commercial Vehicle-Dumper

Commercial vehicle Loan for Vehicle is secured by way of hypothecation of the respective vehicle, carrying interest @ 9.01% p.a. The loan is repayable in 60 instalments from August 2024 @ Rs. 0.84 Lakhs per month (including interest).

(i) Cash Credit-Rs. 30 Cr. (P.Y. 25 Cr.) and Letter of Credit and Buyer''s Credit-aggregate Rs. 30 Cr. (P.Y. Rs. 30 Cr.) from SBI are secured by 1-stocks of raw materials, stock in process, stores & spares and finished goods at its works, godowns etc., (present & future) and including stock in transit and cash/credit balance in their accounts. 2- All present and future book debts/receivables as also clean or documentary bills, domestic or export, whether accepted or otherwise, export documents accompanied by Bill ofLading/AWB, Bill of Exchange, G.R. etc. & other documents called for in the contract and the Cheques/drafts/instruments etc drawn in its favour. 3. The stipulated cash margins for NFB limits and underlying stocks of LC limits. Hypothecation of Stock & Receivables.

38 Employee benefit plans Defined contribution plans Central provident fund

In accordance with The Employees Provident Funds Act, 1952 employees are entitled to receive benefits under the provident fund. Both the employee and the employer make monthly contributions to the plan at a predetermined rate (12% for fiscal year 2025 and 2024) of an employee’s basic salary. All employees have an option to make additional voluntary contributions. These contributions are made to the fund administered and managed by the Government of India (GOI). The Company has no further obligations under the fund managed by the GOI beyond its monthly contributions which are charged to the statement of profit and loss in the period they are incurred.

The Company contributed a total of Rs. 73.31 lakhs for the year ended March 31, 2025 and Rs. 61.40 lakhs for the year ended March 31, 2024 to defined contribution plans.

Defined benefit plans Gratuity plan

The Company has a defined benefit gratuity plan. Every employee who has completed five years or more of service is eligible to a gratuity on departure at 15 days salary (last drawn salary) for each completed year of service or part thereof in excess of six months. Based on actuarial valuations conducted as at year end, a provision is recognised in full for the benefit obligation over and above the funds held in the Gratuity Plan.

The following tables summarise the components of net benefit expense recognised in the statement of profit and loss and the funded status and amounts recognised in the balance sheet in accordance with Ind AS-19 ''Employee benefits'' for the year ended March 31, 2025:

The above sensitivity analysis may be not representative of actual benefit obligation as it is unlikely that the change in assumption would occur in isolation of one another as some of the assumptions may be correlated.

In presenting the above sensitivity analysis, the present value of defined benefit obligation has been calculated using projected unit credit method at the end of reporting period which is the same as that applied in calculating the defined benefit liability recognized in Balance sheet.

Risk analysis

Valuations are based on certain assumptions, which are dynamic in nature and vary over time. As such company is exposed to various risks as follow -Salary Increases

Actual salary increases will increase the Plan’s liability. Increase in salary increase rate assumption in future valuations will also increase the liability. Investment Risk

If Plan is funded then assets liabilities mismatch & actual investment return on assets lower than the discount rate assumed at the last valuation date can impact the liability.

Discount Rate

Reduction in discount rate in subsequent valuations can increase the plan’s liability.

Mortality & disability

Actual deaths & disability cases proving lower or higher than assumed in the valuation can impact the liabilities.

Withdrawals

Actual withdrawals proving higher or lower than assumed withdrawals and change of withdrawal rates at subsequent valuations can impact Plan’s liability. 39 Capital management

The Company manages its capital in order to maximise the return to stakeholders through efficient allocation of capital toward expansion of business, optimisation of working capital requirements and deployment of surplus funds into various investment options.

The Company is not subject to any externally imposed capital requirements.

The management of the company reviews the capital structure of the company on regular basis. As part of this review, the board considers the cost of capital and risk associates with movement in the working capital. The Company monitors capital using a gearing ratio, which is net debt divided by total capital plus net debt. The Company includes within net debt, overdraft facilities, trade payables and other liabilities, less cash and cash equivalent and other bank balances.

41 Capital commitments

Estimated amount of contracts (net of advances) remaining to be executed on capital account 2,888.78 2,059.87

42 Segment Information

As the Company has a single reportable segment, the segment wise disclosure requirement of Ind AS 108 on operating segment is not applicable to it.

43 Financial instruments

This section gives an overview of the significance of financial instruments for the Company and provides additional information on the balance sheet. Details of significant accounting policies, including the criteria for recognition, the basis of measurement and the basis on which income and expenses are recognised, in respect of each class of financial asset, financial liability and equity instrument are disclosed in note 2.

Other Notes

(i) Cash and cash equivalents, trade receivables, investments in term deposits, other financial assets (except derivative financial instruments), trade payables, and other financial liabilities (except derivative financial instruments) have fair values that approximate to their carrying amounts due to their short-term nature.

(ii) The fair value of the financial assets and financial liabilities is included at the amount at which the instruments could be exchanged in a current transaction between willing parties, other than in a forced or liquidation sale.

(iii) The fair values of the financial assets and liabilities are defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Methods and assumptions used to estimate the fair values are consistent with those used for the year ended 31st March, 2025.

(B) Explanation to the fair value hierarchy

The Company measures financial instruments, such as, quoted investments at fair value at each reporting date. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. All assets and liabilities for which fair value is measured or disclosed in the financial statements are categorised within the fair value hierarchy, described as follows, based on the lowest level input that is significant to the fair value measurement as a whole:

i) Level 1 Level 1 hierarchy includes financial instruments measured using quoted prices. This includes listed equity instruments,

traded bonds and mutual funds that have quoted price. The fair value of all equity instruments (including bonds) which are traded in the stock exchanges is valued using the closing price as at the reporting period.

ii) Level 2 The fair value of financial instruments that are not traded in an active market (for example, traded bonds, over-the-counter

derivatives) is determined using valuation techniques which maximise the use of observable market data and rely as little as possible on entity-specific estimates. If all significant inputs required to fair value an instrument are observable, the instrument is included in level 2.

iii) Level 3 If one or more of the significant inputs is not based on observable market data, the instrument is included in level 3. This is

the case for unlisted equity securities, contingent consideration included in level 3.

44 Financial risk management Financial risk factors

The Company''s principal financial liabilities comprise borrowings, trade and other payables. The main purpose of these financial liabilities is to manage finances for the Company''s operations. The Company has loan and other receivables, trade and other receivables, and cash and short-term deposits that arise directly from its operations. The Company''s activities expose it to a variety of financial risks:

i) Market Risk

Market risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market prices. Market prices comprise two types of risk: interest rate risk and other price risks, such as equity price risk and commodity risk. Financial instruments affected by market risk include loans and borrowings, deposits and investments. Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. This is based on the financial assets and financial liabilities held as at March 31, 2025 and March 31, 2024.

The sensitivity analysis excludes the impact of movements in market variables on the carrying value of post-employment benefit obligations provisions and on the non-financial assets and liabilities. The sensitivity of the relevant Statement of Profit and Loss item is the effect of the assumed changes in the respective market risks. The Company''s activities expose it to various financial risks mainly interest rates.

(a) Foreign exchange risk

Fluctuations in foreign currency exchange rates may have an impact on profit or loss, the statement of change in equity, where any transaction references more than one currency or where assets/liabilities are denominated in a currency other than the functional currency of the Company.

Exposures on foreign currency loans are managed through a hedging policy, which is reviewed periodically to ensure that the results from fluctuating currency exchange rates are appropriately managed. The Company strives to achieve asset liability offset of foreign currency exposures and only the net position is hedged.

The Company uses forward exchange contracts and other derivatives to hedge the effects of movements in exchange rates on foreign currency denominated assets and liabilities. The sources of foreign exchange risk are outstanding amounts payable for imported raw materials, capital goods and other supplies. Most of these transactions are denominated in US dollar. The following analysis is based on the gross exposure as at the reporting date.

The Company''s exposure to foreign currency arises where the Company holds monetary assets and liabilities denominated in a currency different from the functional currency of the business, with US dollar for being the major non functional currency for manufacturing business. The changes in the foreign currency exchange rate and other market changes are not expected to have any significant impact on these financial statements.

Interest rate risk and sensitivity

The Company''s exposure to the risk of changes in market interest rates relates primarily to long term debt. The management also maintains a portfolio mix of floating and fixed rate debt. Borrowings issued at variable rates expose the Company to cash flow interest rate risk. As at March 31, 2025, approximately all the interest bearing borrowings of the Company are at variable interest rate.

The assumed movement in basis points for interest rate sensitivity analysis is based on the currently observable market environment. ii) Credit risk

Credit risk is the risk that a counter party will not meet its obligations under a financial instrument or customer contract, leading to a financial loss.

The Company is exposed to credit risk from its operating activities like trade receivables, inter corporate advances, deposits with banks and other financial instruments etc.

Trade receivables

Receivables resulting from sale of finished goods: The Company''s trade receivables does not have any expected credit loss as the same are generally realised during the ordinary course of business. During the periods presented, the Company made no written-off of trade receivables and no recoveries from receivables previously written off.

(iii) Liquidity risk

The Company''s objective is to at all times maintain optimum levels ofliquidity to meet its cash and collateral requirements. The Company relies on a mix of borrowings, capital infusion and excess operating cash flows to meet its needs for funds. The current committed lines of credit are sufficient to meet its short to medium term expansion needs. The Company monitors rolling forecasts of its liquidity requirements to ensure it has sufficient cash to meet operational needs while maintaining sufficient headroom on its undrawn committed borrowing facilities at all times so that the Company does not breach borrowing limits or covenants (where applicable) on any of its borrowing facilities.

(d) Counterparty and concentration of credit risk

Credit risk is the risk that a counter party will not meet its obligations under a financial instrument or customer contract, leading to a financial loss.

The Company is exposed to credit risk from its operating activities like trade receivables, inter corporate advances, deposits with banks and other financial instruments etc.

49 Contingent Liabilities
(a) Claims against the Company not acknowledged as debts	As At March 31, 2025	As At March 31, 2024
(i) The company had placed an order for purchase of some machinery with M/s Hindustan Door Oliver Ltd against which it had given them advance for Rs. 46 lakhs. However dispute arose as the company refused to take delivery of the material on the ground that it did not meet the required specifications. Consequently in the year 1999, M/s Hindustan Door Oliver Ltd filed a compensation claim of Rs. 1 crore in the Hon''ble Bombay High Court. The company challenged the contention of M/s Hindustan Door Oliver Ltd as also the jurisdiction of Hon''ble Bombay High Court in the matter. The matter was subsequently transferred to the court of Hon''ble Court of ADJ, Saket, New Delhi.	100.00	100.00
(ii) The company had been procuring Imported Waste paper from M/s VIPA Lausanne SA. During the year 2009, one of the consignments shipped by M/s Vipa Lausanne SA to the company was sold to some third party by M/s VIPA Lausanne SA. However later it started claiming demurrage charges from the company and filed a windingup petition ofthe company u/s433 and 434 of Companies Act, 1956 before the Hon''ble Allahabad High Court. The matter was disputed by the company before the Hon''ble High Court on the ground that the company is not liable to pay any demurrage charges and also the fact that M/s VIPA Lausanne SA being a company registered outside India can not file the suit in India against the company registered in India.	200.00	200.00
(iii) Duringthe year 2007 the companyhad purchased some boiler material from M/s Balaji Minerals. The materialwas rejected as it was not as per the specification given by the company. Against this M/s Balaji Minerals filed a suit in the Hon''ble ADJ Court Jaipur in the year 2010. The case is pending till date.	0.60	0.60
(iv) During the year 2007 the company had purchased some boiler material from M/s Satyam Minerals. The material was rejected as it was not as per the specification given by the company. Against this M/s Satyam Minerals filed a suit in the Hon''ble ADJ Court Jaipur in the year 2010. The case is pending till date.	0.76	0.76
(v) During the year2009 the company had purchased Hydro-SF Chemical from M/s Transpek Silox Industry Ltd. However, the materialwas rejected on itbeingnot as perthe specification given bythe company. Againstthis M/s TranspekSilox Industry Ltd file a suit in the Hon''ble CJ (SD) Court Vadodara in the year 2010. The case is still pending.	9.58	9.58
(vi) The company had purchased some material from M/s Jyoti Metal. However the material was having some defects and the company raised debit notes for that. Against this M/s Jyoti Metal has filed a suit before the Hon''ble Bombay High Court for the recovery of Rs. 9.77 Lacs. The Hon''ble High Court ordered the Company to deposit Rs. 2.66 Lacs and transferred the matter to District court. The Company filed an application before the H''able High Court against the execution order. Both our application in Hon''ble High Court and main suit in District court are pending.	9.77	9.77

These claims are in respect of various cases filed by the customers and employees. The legal proceedings are on-going and therefore, it is not practicable to state the timing of any payments. The management is of the opinion that it is possible, but not probable, that the action will succeed and accordingly no provision for any liability has been made in these financial statements.

b) The Company''s goods were detained under the provisions of the GST Act, 2017 on the ground that there is no provision for a non-returnable gate pass-cum-challan in the GST Act and the requisite challan did not mention the value of goods and HSN code. Pursuant to the order passed under section 129 ofthe GST Act, 2017, the Company has deposited a penalty of ^1,53,000 under CGST and ^1,53,000 under SGST, aggregating to ^3,06,000. The Company has filed an appeal against the said order. Based on legal advice and management''s assessment, it is expected that the penalty amount deposited will be refunded.

3.06

50 Export obligation are as under:

a. ) EPCG License no. 2930000511 and License Dated 08.01.2019

Duty saved on import of capital goods under EPCG Scheme pending fulfillment of export obligation is amounting to Rs. 396.18 lacs. The Management is of the view that considering the past export performance and future prospects there is certainty that pending export obligation under EPCG Scheme, will be fulfilled before expiry of six years ( 50% export obligationwill befulfilled in firstto fourth year (first block) and balance 50% in fifth to sixth year (second block). Out ofthe saidobligation amountingto Rs. 396.18 lacs the company has fulfilled 50% export obligation in F.Y. 2020-2021 hencethe balance export obligation is amountingto Rs. 198.09 lacs (Rs. 396.18 lacs*50%) as on 31.03.2021 which will be fulfulfilled in fifth to sixth year (from the date of license).

b. ) EPCG License no. 2930000505 and License Dated 06.11.2018

Duty saved on import of capital goods under EPCG Scheme pending fulfillment of export obligation is amounting to Rs. 2,294.55 lacs. The Management is ofthe viewthat considering the past export performance and future prospects there is certainty that pending export obligation under EPCG Scheme, will be fulfilled before expiry of six years ( 50% export obligationwill befulfilled in firstto fourth year (first block) and balance 50% in fifth to sixth year (second block). Out ofthe saidobligation amountingto Rs. 2,294.55 lacs the company has fulfilled 50% export obligation in F.Y. 2020-2021 hence the balance export obligation is amounting to Rs.1,147.27 lacs (Rs. 2,294.55 lacs*50%) as on 31.03.2021 which will be fulfulfilled in fifth to sixth year (from the date of license).

The above disclosure has been determined to the extent such parties have been identified on the basis of information available with the Company.

The interest on such outstanding balance is not provided for as mutually decided between the parties.

55 Provision of Current year Tax has been made in accordance the Taxation Laws (Amendment) Act, 2019, inserted Section 115BAA in the Income Tax Act, 1961, which provides domestic companies an option to pay incometax at reduced rate effective 1st April, 2019, subject to certain conditions. Consequently, the tax expense for the year ended 31st March, 2025 have been measured at reduced tax rate.

1. Reason of variance is given only where % change is more than 25%.

2. Decrease in ratio on account of decrease in revenue in current year as compared to previous year.

3. Variance is due to increase in trade payables on account of higher purchases and extended credit terms from suppliers.

4. Company’s net profit falls due to lower revenues.

5. Return on Investment has increased primarily due to redemption of a significant portion of gold bonds during the year, resulting in recognition of higher income.

57 Edit Log and Audit trail feature to maintain books of accounts

The Company has used accounting software systems for maintaining its books of account for the financial year ended March 31, 2025 which have the feature of recording audit trail (edit log) facility and the same has operated throughout the year for all relevant transactions recorded in the software systems.

63 The title deeds of all immovable property are held in the name of the Company except lease hold land.

64 The Company does not have any Investment property and hence, revaluation is not applicable.

65 The Company has not revalued its property, plant and equipment (including Right to Use Assets) in this financial year

66 The Company has not revalued its Intangible assets.

67 Loan or advances granted to the promoters, directors and KMPs and the related parties:

No Loan or advances in the nature of loans have been granted to the promoters, directors, key managerial persons and the related parties (as defined under the Companies Act, 2013), either severally or jointly with any other person that are:

(a) repayable on demand or

(b) without specifying any terms or period of repayment

b) There are no intangible assets under development.

69 Disclosure in respect of Benami Property Held

No proceedings have been initiated or pending against the Company for holding any benami property under the Benami Transactions (Prohibition) Act 1988 (45 of 1988) and the rules made thereunder.

70 Disclosure in case the Company has borrowings from banks or financial institutions on the basis of security of current assets

Quarterly/monthly returns or statements of current assets filed by the Company with banks or financial institutions are materially in agreement with the books of accounts.

71 Willful Defaulter

The Company does not have any borrowings from banks or financial institutions and no Bank or financial institution has declared the company as "willful defaulter".

72 Relationship and balances with Struck off Companies:

There are no transaction with the companies whose name struck off under section 248 of the Companies Act, 2013 or section 560 of Companies Act, 1956 during the year ended 31 March 2025 and the year ended 31 March 2024.

77 Figures for the previous year have been regrouped and rearranged wherever necessary

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Mar 31, 2005

1. CONTINGENT LIABILITIES

(A) Excise Duty demand regarding valuation of goods under section 4 of Central Excise Act 1944 is Rs. Nil Lacs (Previous Year 112.34 Lacs). Demand raised by the department had been withdrawn.

(B) Excise duty demand against Cenvat on capital goods Rs.10.56 lacs disallowed (Previous year Nil)

(C) Service Tax on Business auxiliary services Rs. 36.56 lacs (Previous year Nil)

(D) Department filed appeal against core pipe with finish goods sale matter Rs. 0.84 lacs (Previous year Nil)

(E) Estimated amount of contracts remaining to be executed on capital A/c and not provided for Rs. Nil lacs (Previous year Rs.300.21 lacs)

(F) Demand of UPSEB amounting to Rs. 13.31 lacs (Previous year 13.31 lacs) and late payment surcharge of Rs. 19.26 lacs (Previous year 19.26 lacs) for use of electricity during peak hours of period from April92 to July93, not accepted by the company. Matter under consideration with Udhyog Bandhu, Lucknow and stay is granted by Hble High Court, Lucknow Bench against writ filed.

(G) Bank interest under dispute with Punjab and Sind bank of Rs 5.51 Lacs. (Previous year 5.51 lacs).

(H) Guarantees aggregating to Rs. 4460.00 lacs (Previous year Rs 4460.00 lacs) to banks and financial institutions on behalf of others.

(I) Legal suit by Hindustan Door Oliver Ltd. for compensation claim of Rs. 100.00 Lacs (Previous year 100.00 lacs). Matter is in progress for settlement out of court.

(J) Custom Duty on Imported Waste Paper brunt due to fire amounting to Rs. 101.22 lacs. (Previous Year: Nil)

(K) Sales tax demand Rs. Nil (Previous Year 176.95 Lacs).

3. The company has undertaken trading of sugar during this financial year. The consequent change in the Memorandum of Association has been made & filed with the Registrar of Companies.

4. Against the insurance claim receivable of Rs. 274.00 lacs, appearing in last year balance sheet, for fire broke out on 22nd March 2004, the company has received the claim to the extent of Rs. 181.74 lacs and further a sum of Rs. 42.27 lacs is adjusted by way of reversal of differential custom duty. Balance sum of Rs. 49.99 lacs remains as unadjusted receivable claim for the preceding year.

Further another fire occurred on 15th April 2004 against which the company lodged the claim of Rs. 471.02 lacs and the claim was received of RS. 268.66 lacs. Balance amount of Rs. 202.36 lacs continue as claim receivable against insurance company.

Against the aggregate receivable claim of Rs. 252.35 lacs ( Rs. 44.99 lacs for preceding year and Rs. 202.36 lacs for current year fire ) the company has moved to the arbitration claiming Rs. 292 lacs ( Comprising short amount received against claim and consequential losses ) plus interest @ 18% . No provision for possible loss if any, has been made as the same is un ascertainable at this stage. The above said receivable amount is appearing under the head Loans & Advances.

5. The ground rent paid to Container Corporation, of India amounting to Rs. 44.21 lacs has been debited to ground rent refundable account as the claim is pending with appropriate authority on the facts that the ground has arise due to congestion at the port for which company is not liable. The said amount is appearing under the head Loans & Advances. Provision of Rs. 10.00 lacs has been made for possible loss on this account.

6. Loans and advance includes interest refundable from bank Rs 22.63 lacs for differential interest @ 1.5% excess charged by bank. The company has taken up the issue with the bank at appropriate level and the same is pending. No provision has been made for loss if any on this account as the amount is not ascertainable. The above said receivable amount is appearing under the head Loans & Advances.

7. Balances of Sundry Debtors., Loans & Advances, Sundry Creditors and Security Deposits are subject to confirmation .

8. No Provision has been made for Directors Sitting Fee. Estimated Liability Rs.21,250 (Previous year Rs.20,250)

9. Auditors Remuneration

Audit Fee Rs. 110,200 (Prev. Year Rs. 83.000)

Reimbursement of Expenses Rs. 9,274 (Prev. Year Rs. 22,449)

10. There has been no employee having received the remuneration aggregating-Rs. 4,800,OOO/- or more if employed for the full year or Rs. 400,000/- per month or more, if employed for the part of year.

11. The company is availing the sales tax exemption for nine years maximum to the extent of tax aggregating to Rs. 1,841.38 lacs initially allowed under U.P. Trade tax and Central Sales Tax act, which is reduced every year to the extent used as per section 4A of UPTT Act.

12. The company has an equity investment of Rs.175.00 lacs in M/s Chadha Boards Ltd. Further Rs 343.91 Lacs is taken as interest free advance from M/s Chadha Boards Ltd.

13. In the opinion of the directors and to the best of their knowledge & belief, the value on realization of current assets, loans & advances in the ordinary course of business would not be less than the amount at which they are stated in the Balance Sheet.

14. Sundry debtors includes a sum of Rs.1,012,710 (Previous year Rs.1,056,464) due from M/s United Papers Crafts, Derrabassi (Punjab) against whom legal suit is pending in court. However mutual settlement is reached with party and the payment is being received gradually. Hence no provision for bad and doubtful debts is made or provided for.

15 The expenses for commission & consultancy incomes are debited to respective heads of accounts of profit & loss account.

16 M/s Hindustan Door Oliver Ltd. has filed legal suit against the company in Delhi High Court for compensation Claim of Rs.100.00 lacs plus awarding cost ,on account of non fulfillment of contract obligations. The company has not accepted their claim & has decided to defend the suit. No provision has been made against the said claim.

17 Provision for minimum Alternate tax has not been made in the accounts as company has not earned book profit.

18. This year the company has charged depreciation on its Writing & Printing Plant & Machinery on the rates applicable to Continuous process plant. In the last year the same was provided on Shift working basis. The change is done consequent to the opinion obtained from independent paper industry technocrat. The change has resulted in the additional depreciation of Rs. 41,796 being charged in the current financial year pertaining to last year. Had the same method being used depreciation would have been higher by Rs. 19,247,878 and consequently profit would have been lower by the same amount.

19. The Company hold the lease hold right of using an accommodation for a week per year (on cumulating basis) of sterling Holidays Resorts where ever constructed. The original payment made by the company is Rs.67800.00 the right of use is treated as fixed assets and depreciation is being charged considering the period of lease.

Pursuant to accounting standard (AS) 22, Accounting for taxes on Income, the company has recorded a net cumulated deferred tax liability of Rs.55,326,621 up to 31.03.2004. During the year the company has revised its deferred tax liability of Rs.55,326,261 to represent current tax rate applicable. This has resulted in reduction of liability to the extent of Rs.7,482,378. The amount has been credited to Profit & Loss Account. Further, Rs.3,447,321 has been recognized as deferred tax assets for the year and accordingly credited to profit & loss Account.

20. Previous year figures have been regrouped and rearranged wherever necessary to make them comparable with those of previous year.

21 Additional Information Pursuant to the Provision of Paragraph 3, 4C & 4D of part II of schedule VI of the companies Act1956. The company manufactures M.G.Kraft Paper and News Print/Writing Printing Paper and the relevant particulars thereof are as under:

Installed capacity is as certified by the Management but not verified by the Auditors being a technical matter.

Note Opening stock, Production & Closing stock of Kraft Paper includes the qty. 4.837 Mt, (-) 1.077 Mt. & 3.772 Mt. respectively of core Pipe which is of captive consumption nature.