a.  Basis of preparation
 
 The financial statements of The Andhra Pradesh Paper Mills Limited
 (''APPM'' or ''the Company'') have been prepared and presented in
 accordance with Indian Generally Accepted Accounting Principles (GAAP)
 under the historical cost convention on the accrual basis. GAAP
 comprises accounting standards notified by the Central Government of
 India under Section 211 (3C) of the Companies Act, 1956, other
 pronouncements of Institute of Chartered Accountants of India, the
 provisions of Companies Act, 1956 and guidelines issued by Securities
 and Exchange Board of India. The financial statements are rounded off
 to the nearest Rupees lakhs.
 
 The Company has prepared these financial statements as per the format
 prescribed by Revised Schedule VI to the Companies Act, 1956 (''the
 schedule'') issued by Ministry of Corporate Affairs.  Previous periods''
 figures have been recast/restated to conform to the classification
 required by the Revised Schedule VI.
 
 b.  Use of estimates
 
 The preparation of the financial statements in conformity with GAAP
 requires management to make estimates and assumptions that affect the
 reported amounts of assets and liabilities and disclosure of contingent
 liabilities on the date of the financial statements and reported
 amounts of revenues and expenses for the year. Actual results could
 differ from these estimates. Any revision to accounting estimates is
 recognised prospectively in the current and future periods.
 
 c.  Fixed assets and depreciation
 
 Fixed assets are carried at the cost of acquisition or construction
 less accumulated depreciation. The cost of fixed assets includes
 non-refundable taxes, duties, freight and other incidental expenses
 related to the acquisition and installation of the respective assets.
 Borrowing costs directly attributable to acquisition or construction of
 those fixed assets which necessarily take a substantial period of time
 to get ready for their intended use are capitalized.
 
 Intangible assets are recorded at the consideration paid for
 acquisition.
 
 Depreciation on plant and machinery of Units:APPM and CP and buildings
 of Unit:CP are charged under straight line method applying the rates
 worked out in accordance with Schedule XIV of the Companies Act, 1956.
 Depreciation on other fixed assets is charged under written down value
 method in accordance with Schedule XIV of the Companies Act, 1956.
 
 Leasehold improvements are amortized over the primary period of lease
 or the estimated useful life of such assets, whichever is shorter.
 Freehold land is not depreciated.
 
 Goodwill arising on amalgamation is amortized over a period of 10
 years.
 
 Depreciation is calculated on a pro-rata basis from the date of
 installation till the date the assets are sold or disposed. Individual
 assets costing less than Rs.5,000 are depreciated in full in the year of
 acquisition.
 
 d.  Investments
 
 Trade investments are the investments made to enhance the Company''s
 interest. Investments are either classified as current or long term
 based on management''s intention at the time of purchase.
 
 Current investments are carried at the lower of cost and market value.
 The comparison of cost and market value is done separately in respect
 of each category of investment.
 
 Long-term investments are carried at cost less any permanent diminution
 in value, determined separately for each individual investment. The
 reduction in the carrying amount is reversed when there is a rise in
 the value of the investment or if the reasons for the reduction no
 longer exist.
 
 e.  Inventories
 
 Inventories are valued at the lower of cost and net realisable value.
 Cost of inventories comprises all cost of purchase, cost of conversion
 and other costs incurred in bringing the inventories to their present
 location and condition.
 
 Raw material and packing material held for use in the production of
 inventories are not written down below cost if the finished goods in
 which they will be incorporated are expected to be sold at or above
 cost.
 
 f.  Employee benefits
 
 Employee benefits in the form of employees state insurance fund and
 labour welfare fund are considered as defined contribution plans and
 the contributions are charged to the profit and loss account of the
 year when the contributions to the respective funds are due. The
 Company has no further obligations under the above plans beyond its
 contributions.
 
 The Company''s liabilities towards gratuity and compensated absences are
 determined based on actuarial valuation carried out by an independent
 actuary using the projected unit credit method as on the date of the
 balance sheet.
 
 g.  Gratuity
 
 In accordance with the Payment of Gratuity Act, 1972, the Company
 provides for gratuity, a defined benefit retirement plan (''the Gratuity
 Plan'') covering eligible employees.  The Gratuity Plan provides a
 lump-sum payment to vested employees at retirement, death,
 incapacitation or termination of employment, of an amount based on the
 respective employee''s salary and the tenure of employment with the
 Company.
 
 Liabilities with regard to the Gratuity Plan are determined by
 actuarial valuation at each Balance Sheet date using the projected unit
 credit method. The Company fully contributes all ascertained
 liabilities to the gratuity fund maintained with ICICI Prudential Life
 Insurance, Life Insurance Corporation of India and Birla Sun Life
 Insurance. The Company recognises the net obligation of the Gratuity
 Plan in the Balance Sheet as an asset or Liability, respectively in
 accordance with Accounting Standard (AS) 15, ''Employee Benefits.'' The
 Company''s overall expected long-term rate of return on asset has been
 determined based on consideration of available market information,
 current provisions of Indian law specifying the instruments in which
 investments can be made, and historical returns. The discount rate is
 based on the Government securities yield.
 
 Actuarial gain or losses arising from experience adjustments and
 changes in actuarial assumptions are recognised in statement of profit
 and loss in the period in which they arise.
 
 ii.  Superannuation
 
 Certain employees of the Company are also participants in the
 superannuation plan (''the Plan'') which is a defined contribution plan.
 The Company fully contributes all ascertained liabilities to the
 superannuation fund maintained with Life Insurance Corporation of
 India.
 
 iii.  Provident fund
 
 Eligible employees receive benefits from a provident fund, which is a
 defined benefit plan. Both the employee and the Company make monthly
 contributions to the provident fund plan equal to a specified
 percentage of the covered employee''s salary. For Unit:APPM, the Company
 contributes the contributions to ''The Employee''s Provident Fund of The
 Andhra Pradesh Paper Mills Limited'' trust maintained by the Company and
 for Unit:CP, the Company contributes the fund to Regional Provident
 Fund Commissioner. The rate at which the annual interest is payable to
 the beneficiaries by the trust is being administered by the government.
 For Unit:APPM, the Company has an obligation to make good the
 shortfall, if any, between the return from the investments of the trust
 and the notified interest rate. However, in case of Unit:CP, the
 Company is not liable to contribute towards any shortfall.
 
 iv.  Compensated absences
 
 The employees of the Company are entitled to compensated absences which
 are both accumulating and non-accumulating in nature. The Company fully
 contributes all ascertained liabilities to the superannuation fund
 maintained with Birla Sun Life Insurance.  The expected cost of
 accumulating compensated absences is determined by actuarial valuation
 based on the additional amount expected to be paid as a result of the
 unused entitlement that has accumulated at the balance sheet date.
 Expense on non- accumulating compensated absences is recognised in the
 period in which the absences occur.
 
 h.  Foreign currency transactions and balances
 
 Foreign currency transactions are recorded at the rates of exchange
 prevailing on the date of the respective transactions. Exchange
 differences arising on foreign exchange transactions settled during the
 year are recognised in the profit and loss account of the year.
 
 Monetary assets and liabilities denominated in foreign currencies as at
 the balance sheet date are translated at the exchange rate on the
 balance sheet date and resultant exchange differences are recognised in
 the profit and loss account.
 
 Non-monetary items which are carried in terms of historical cost
 denominated in foreign currency are reported using the exchange rate at
 the date of the transaction.
 
 As per the notification issued by the Ministry of Corporate Affairs
 vide notification dated March 31, 2009 and subsequent notification
 issued dated May 11, 2011, the Company has adjusted foreign exchange
 differences arising on long term foreign currency loans to the cost of
 the asset, where the long term foreign currency monetary items related
 to acquisition of a depreciable capital asset (whether purchased within
 or outside India) and has depreciated such foreign exchange gain /
 losses over the asset''s balance useful life.
 
 Forward contracts are entered into to hedge the foreign currency risk
 of the underlying outstanding at the balance sheet date. The premium or
 discount on all such contracts is amortized as income or expense over
 the life of the contract. Any profit or loss arising on the
 cancellation or renewal of forward contracts is recognised as income or
 expense for the period.
 
 In relation to the forward contracts entered into to hedge the foreign
 currency risk of the underlying outstanding at the balance sheet date,
 the exchange difference is calculated and recorded in accordance with
 AS-11 (revised). The exchange difference on such a forward exchange
 contract is calculated as the difference of the foreign currency amount
 of the contract translated at the exchange rate at the reporting date,
 or the settlement date where the transaction is settled during the
 reporting period and the corresponding foreign currency amount
 translated at the later of the date of inception of the forward
 exchange contract and the last reporting date. Such exchange
 differences are recognised in the profit and loss account in the
 reporting period in which the exchange rates change.
 
 i.  Revenue recognition
 
 Revenue from sale of goods is recognised when significant risks and
 rewards in respect of ownership of products are transferred to
 customers. Revenue from domestic sales is recognised on delivery of
 products to customers, from the factories and depots of the Company.
 Revenue from export sales is recognised when the significant risks and
 rewards of ownership of products are transferred to the customers,
 which is based upon the terms of the applicable contract. Revenue from
 sale of goods has been presented both gross and net of excise duty.
 
 Revenue from product sales is stated exclusive of returns, sales tax
 and applicable trade discounts and allowances.
 
 Dividend income is recognised when the unconditional right to receive
 the income is established. Income from interest on deposits, loans and
 interest bearing securities is recognised on the time proportionate
 method based on underlying interest rates.
 
 Export entitlements are recognised as income when the right to receive
 credit as per the terms of the scheme is established in respect of the
 exports made and where there is no significant uncertainty regarding
 the ultimate collection of the relevant export proceeds.
 
 Insurance and other claims/refunds are accounted for as and when
 admitted by appropriate authorities.
 
 Income from sale of Certified Emission Reduction points (CERs) granted
 by UNFCCC on energy efficient measures are accounted as and when sold
 to customers.
 
 j.  Income-tax expense
 
 Income tax expense comprises current tax and deferred tax charge or
 credit.
 
 Current tax
 
 The current charge for income taxes is calculated in accordance with
 the relevant tax regulations applicable to the Company.
 
 Deferred tax
 
 Deferred tax charge or credit reflects the tax effects of timing
 differences between accounting income and taxable income for the
 period. The deferred tax charge or credit and the corresponding
 deferred tax liabilities or assets are recognised using the tax rates
 that have been enacted or substantially enacted by the balance sheet
 date. Deferred tax assets are recognised only to the extent there is
 reasonable certainty that the assets can be realized in future;
 however, where there is unabsorbed depreciation or carry forward of
 losses, deferred tax assets are recognised only if there is a virtual
 certainty of realization of such assets. Deferred tax assets are
 reviewed at each balance sheet date and written-down or written-up to
 reflect the amount that is reasonably/virtually certain (as the case
 may be) to be realized. The break-up of the major components of the
 deferred tax assets and liabilities as at balance sheet date has been
 arrived at after setting off deferred tax assets and liabilities where
 the Company has a legally enforceable right to set- off assets against
 liabilities and where such assets and liabilities relate to taxes on
 income levied by the same governing taxation laws.
 
 Minimum alternate tax credit
 
 MAT credit entitlement represents the amounts paid in a year under
 Section 115JB of the Income Tax Act 1961 (''IT Act'') which is in excess
 of the tax payable, computed on the basis of normal provisions of the
 IT Act. Such excess amount can be carried forward for set off in future
 periods in accordance with the relevant provisions of the IT Act. Since
 such credit represents a resource controlled by the Company as a result
 of past events and there is evidence as at the reporting date that the
 Company will pay normal income tax during the specified period, when
 such credit would be adjusted, the same has been disclosed as ''MAT
 Credit entitlement'', in the balance sheet with a corresponding credit
 to the profit and loss account, as a separate line item.
 
 Such assets are reviewed at each balance sheet date and written down to
 reflect the amount that will not be available as a credit to be set off
 in future, based on the applicable taxation law then in force.
 
 k.  Earnings per share
 
 The basic earnings per share (''EPS'') is computed by dividing the net
 profit after tax for the year by the weighted average number of equity
 shares outstanding during the year. For the purpose of calculating
 diluted earnings per share, net profit after tax for the year and the
 weighted average number of shares outstanding during the year are
 adjusted for the effects of all dilutive potential equity shares. The
 dilutive potential equity shares are deemed converted as of the
 beginning of the period, unless they have been issued at a later date.
 The diluted potential equity shares have been adjusted for the proceeds
 receivable had the shares been actually issued at fair value (i.e. the
 average market value of the outstanding shares).
 
 l.  Provisions and contingent liabilities
 
 The Company creates a provision when there is a present obligation as a
 result of a past event that probably requires an outflow of resources
 and a reliable estimate can be made of the amount of the obligation. A
 disclosure for a contingent liability is made when there is a possible
 obligation or a present obligation that may, but probably will not,
 require an outflow of resources. Where there is possible obligation or
 a present obligation in respect of which the likelihood of outflow of
 resources is remote, no provision or disclosure is made.
 
 Provisions for onerous contracts, i.e. contracts where the expected
 unavoidable costs of meeting the obligations under the contract exceed
 the economic benefits expected to be received under it, are recognised
 when it is probable that an outflow of resources embodying economic
 benefits will be required to settle a present obligation as a result of
 an obligating event based on a reliable estimate of such obligation.
 
 m.  Impairment of assets
 
 The Company assesses at each balance sheet date whether there is any
 indication that an asset may be impaired. If any such indication
 exists, the Company estimates the recoverable amount of the asset. If
 such recoverable amount of the asset or the recoverable amount of the
 cash generating unit to which the asset belongs is less than its
 carrying amount, the carrying amount is reduced to its recoverable
 amount. The reduction is treated as an impairment loss and is
 recognised in the profit and loss account. If at the balance sheet date
 there is an indication that if a previously assessed impairment loss no
 longer exists, the recoverable amount is reassessed and the asset is
 reflected at the recoverable amount subject to a maximum of depreciated
 historical cost.
 
 n.  Leases
 
 Lease payments under operating lease are recognised as an expense in
 the profit and loss account on a straight line basis over the lease
 term.