1.  Commitments and contingent liabilities
 
                                                          Rs. Lakhs
 
                                             As at             As at
 
                                  31st March, 2011  31st March, 2010
 
 i.  Commitments/contingent liabilities
 
 a.  Guarantees issued by banks             684.36           767.15
 
 b.  Letters of credit outstanding         1014.83           240.55
 
 c.  Corporate guarantee given to forest 
 department of Government of 
 Andhra Pradesh                            1472.09          1472.09
 
 ii.  Claims against the Company not 
 acknowledged as debts in respect of:
 
 a.  Income tax matters, pending decisions 
 on various appeals made by the Company 
 and by the Department                      138.82           107.07
 
 b.  Excise matters, under dispute         1647.02          3435.82
 
 c.  Sales tax matters, under dispute       365.33           347.04
 
 d.  Other matters, under dispute           297.25           438.27
 
 e.  Vacant land tax                        228.31           228.31
 
 f.  Demand raised by Eastern Power 
 Distribution Corporation of Andhra
 Pradesh Limited for surplus power 
 supplied by APGPCL disputed by the
 company. An amount of Rs.76.98 lakhs 
 paid under protest (Previous year
 Rs.76.98 lakhs) has been grouped under 
 loans and advances. The appeal filed by 
 APTRANSCO is pending before the Hon’ble 
 A.P. High Court in which other companies 
 similarly placed are made respondents.      87.66            87.66
 
 iii.   Estimated amount of contracts 
 remaining to be executed on capital 
 account and not provided for (net of 
 advances)                                 2136.94         1692.811
 
 iv.  Commitment under Export Promotion 
 Capital Goods (EPCG) scheme              57613.38         57970.00
 
 2.  Deferred Taxation
 
 The Company has since the inception of Accounting Standard 22 on
 Accounting for Taxes on Income, recognised the deferred tax expense,
 which arises primarily from depreciation on tangible fixed assets on
 the basis of the currently applicable enacted Minimum Alternate Tax
 rate rather than the regular tax rates as specified by paragraph 21 of
 Accounting Standard 22. The Company has challenged the provisions of
 Accounting Standard 22, in so far as it relates to the above matter and
 has accordingly filed a writ petition in June 2003 before the Hon’ble
 High Court of Andhra Pradesh. The case has been subsequently
 transferred to the Hon’ble Calcutta High Court. The writ petition has
 been admitted and is currently pending resolution. The quantification
 of the deferred tax liability, and consequential impact on the
 financial statement, which may arise due to the above, has been held in
 abeyance pending disposal of the writ petition.
 
 3.  Related Party Disclosures
 
 a.  Related parties where control exists or where significant influence
 exists and with whom transactions have taken place during the year:
 
 Enterprises where principal shareholders have control
 
 1.  Samay Books Limited - Enterprise owned by principal shareholders
 
 Enterprises where principal shareholders have significant influence
 
 1.  Digvijay Investments Limited - Enterprise owned by principal
 shareholders
 
 2.  Amalgamated Development Limited - Enterprise owned by principal
 shareholders
 
 3.  Apurva Export Private Limited - Enterprise owned by principal
 shareholders
 
 4.  MB Commercial Company Limited - Enterprise owned by principal
 shareholders
 
 5.  Maharaja Shree Umaid Mills Limited - Enterprise owned by principal
 shareholders
 
 6.  Mugneeram Ramcoowar Bangur Charitable & Religious Company -
 Enterprise owned by principal shareholders
 
 7.  Placid Limited - Enterprise owned by principal shareholders
 
 8.  Shree Krishna Agency Limited - Enterprise owned by principal
 shareholders
 
 9.  The General Investment Company Limited - Enterprise owned by
 principal shareholders
 
 10.  The Kishore Trading Company Limited - Enterprise owned by
 principal shareholders
 
 11.  The Peria Karamalai Tea & Produce Company Limited - Enterprise
 owned by principal shareholders
 
 12.  The Swadeshi Commercial Company Limited - Enterprise owned by
 principal shareholders
 
 Key Management Personnel represented on the Board
 
 Mr. L.N. Bangur Executive Chairman
 
 Mr. M.K. Tara Managing Director & CEO
 
 Ms. Sheetal Bangur Director (Commercial)
 
 Mr. Shreeyash Bangur Director (Corporate)
 
 Mr. P.K. Suri Director (Operations)
 
 Non-Executive and Independent Directors on the Board
 
 Mrs. Alka Bangur
 
 Mr. N. Srinivasan
 
 Mr. R.C. Sarin
 
 Mr. P.J.V. Sarma
 
 Mr. P.K. Paul
 
 Mr. Rajiv Kapasi
 
 Mr. P.R. Ramakrishnan
 
 Discount rate: The discount rate is based on the prevailing market
 yields of Indian government securities as at the balance sheet date for
 the estimated term of the obligations.
 
 Expected rate of return on plan assets: This is based on the
 expectation of the average long term rate of return expected on
 investments of the fund during the estimated term of the obligations.
 
 Salary escalation rate: The estimates of future salary increases
 considered takes into account the inflation, seniority, promotion and
 other relevant factors.
 
 4.  Segment information
 
 The Company is in the business of manufacture and sale of pulp, paper
 and paper board. Considering the core activities of the Company,
 management is of the view that manufacture and sale of pulp, paper and
 paper board is a single reportable business segment and hence
 information relating to primary segment is not required to be
 disclosed.
 
 5.  Clean Development Mechanism (CDM) Emission Reductions:
 
 On account of energy efficiency measures undertaken by the Company
 during the period from June 2000 to December 2006, UNFCCC (in
 accordance with the regulations of United Nations body on environment)
 has approved the project and accorded Certified Emission Reduction
 (CERs) points to the Company, which have been sold during the year.
 Income from such sales has been credited to the Profit and Loss Account
 and has been disclosed under other income.
 
 6.  The Ministry of Micro, Small and Medium Enterprises has issued an
 Office Memorandum dated 26th August, 2008 which recommends that the
 Micro and Small Enterprises should mention in their correspondence with
 its customers the Entrepreneurs Memorandum Number as allotted after
 filing of the Memorandum. Accordingly, the disclosure in respect of the
 amounts payable to such enterprises as at 31st March, 2011 has been
 made in the financial statements based on information received and
 available with the Company. Further in the view of the management, the
 impact of interest, if any, that may be payable in accordance with the
 provisions of the Micro, Small and Medium Enterprises Development Act,
 2006 is not expected to be material. The Company has not received any
 claim for interest from any supplier under the said Act.
 
 7.  Conversion of warrants
 
 70,18,242 equity shares of Rs.10 each at a premium of Rs.40 per share
 offered to the shareholders on rights basis were allotted on 30th
 March, 2010. In terms of letter of offer dated 22nd February, 2010,
 70,18,242 detachable warrants were also allotted on the same day which
 will be converted into equivalent number of equity shares of Rs.10 each
 on payment of warrant exercise price of Rs.50 per warrant at any time
 before the expiry of 18 months from the date of allotment i.e. 30th
 September, 2011. A sum of Rs.2,807.30 lakhs collected on account of
 premium at Rs.40 per share on 70,18,242 equity shares of Rs.10 each
 allotted on rights basis on 30th March, 2010 was credited to security
 premium account. Expenses of Rs.49.87 lakhs related to the rights issue
 was adjusted against the securities premium account.
 
 During the year, the Company has allotted 70,18,242 equity shares of
 Rs.10 each at a premium of Rs.40 per share, by converting an equivalent
 number of detachable warrants. A sum of Rs.2,807.30 lakhs collected on
 account of premium at Rs.40 per share on 70,18,242 equity shares of Rs.10
 each allotted on conversion of warrants on 2nd December, 2010 has been
 credited to securities premium account. Expenses of Rs.2.92 lakhs related
 to the issue of shares have been adjusted against the securities
 premium account.
 
 8.  Borrowing costs
 
 Additions to fixed assets include an amount of Rs.222.69 lakhs (Previous
 year: Rs.1,034.55 lakhs) on account of capitalisation of interest costs
 as stipulated under AS 16 - Borrowing Costs.
 
 9. The Promoters of the Company, LN Bangur Group informed the Company
 on 29th March, 2011 that they had entered into an agreement to sell
 their entire shareholding of 2,12,60,008 equity shares of Rs.10 each held
 by them in the Company to IP Holding Asia Singapore PTE Limited
 (Acquirer), a subsidiary of International Paper Company, USA. The
 transfer of the aforesaid shares will take place after receiving the
 necessary approvals from regulatory authorities in India by the
 Acquirer.  The Acquirer is an unlisted company incorporated under the
 laws of Singapore. International Paper Company, USA is a global paper
 and packaging company and is listed on the New York Stock Exchange.
 
 10.  The Board of Directors has recommended a dividend of Rs.1.00 per
 share of Rs.10 each for the year.
 
 11.  Comparative figures
 
 Previous year''s figures have been regrouped/ reclassified wherever
 necessary to conform to current year''s classification.