a The company has only one class of Issued share i.e, Equity Shares
 having par value of Rs 10/- per share. Each Shareholder is entitled to
 one vote per share and equal right for dividend. In the event of
 liquidation the equity shareholders ae eligible to receive the
 remaining assets of the company after payment of all preferential
 amount in proportion to their shareholding.
 
 b The company does not have any Holding company / ultimate Holding
 Company.
 
 Notes:
 
 a Term loan taken from banks is repayable in 7 quaterly equal
 installment of Rs.14 lacs each starting from 1st April 2012 and balance
 in the 8th installment.
 
 b Term loan is secured by hypothecation of assets acquired out of term
 loan.
 
 c Deferred payment liabilities are secured by hypothecation of assets
 acquired out of loan. Repayment schedule of the same for the next three
 years is Rs.7.35 Lacs, Rs.4.71 Lacs & Rs.0.33 Lacs respectively.
 
 d Loan from Mangalam Cement Limited amounting to Rs. 3,000 lacs
 received at the time of pending scheme of amalgamation of the company
 with them which was subsequently withdrawn by Mangalam Cement Limited
 has been classified as Long term Borrowing in view of representation
 made by the company for rescheduling the payment terms.
 
 e Repayment schedule of Other loans for next five years are Rs.125
 lacs, Rs.150 lacs, Rs.75 lacs, Rs.150 lacs & Rs.75 lacs respectively.
 
 f Cash credit amounting to Rs.995.32 Lacs (PY Rs.707.33 Lacs) and bill
 discounting and letter of credit amounting to Rs.379.50 Lacs (PY
 Rs.344.69 lacs) are secured by prior charge by way of hypothecation of
 stocks, debts and other current assets and second charge to be created
 over entire fixed assets both present and future.
 
 Note 1.1 Disclosure to Financial Statements
 
                                                           (Rs. in lacs)
 
                                             31ST MARCH,
                                             2012         31ST MARCH,
                                                          2011
 
 1.  Contingent liabilities not provided 
 for in respect of :
 
 a) Sales Tax matters pending in appeal       1,403.90      1,304.14
 
 b) Excise/Service Tax matters as under :
 
 i) Excise matters pending in appeal            135.82        135.82
 
 ii) Service Tax Outward Freight                   Nil         52.21
 
 c) State Excise matters pending in appeal    1,070.72        847.15
 
 d) Bank guarantees given in favour of 
 District Magistrate and Collector 
 Nabarangpur and remaining outstanding            5.00          5.00
 
 e) Demand of Electricity Duty raised by 
 Southern Electricity Supply Company of 
 Odisha Ltd. for the period from April, 
 2008 to January, 2011                           70.53           Nil
 (part of BIFR period). (Also refer
 Note No. 11)
 
 2.  Royality on wood had been increased by the Government of Odisha
 with retrospective effect from 1st April, 1988 vide its letter dated
 2nd September, 1993 against which the Company had filed a writ petition
 before the Odisha High Court. The Odisha High Court vide its order
 dated 16th May, 1995 had upheld the writ petition of the Company.
 Government of Odisha had filed a Special Leave Petition before the
 Supreme Court. The Hon''ble Supreme Court vide its order dated 11th
 November, 2003 has dismissed the special leave petition filed by the
 Government of Odisha and upheld the decision of the Hon''ble High Court
 of Odisha passed in favour of the Company. The Hon''ble Supreme Court
 had also directed the Govt. of Odisha to implement the judgement of the
 Hon''ble High Court of Odisha expeditiously and in any case within a
 period of four months from the date of the order of the Supreme Court.
 Subsequently, Government of Odisha has lodged a claim for Rs.303.49
 lacs (net of excess amount of royalty paid by the Company in earlier
 years) on the Company on account of alleged failure in taking up
 replantation in the area harvested by the Company. This claim has been
 denied by the company.  In terms of the Supreme Court judgement, the
 Company has lodged its claim with the Government of Odisha, the
 monetary value of which is much higher in comparison to the claim
 lodged by the Govt. of Odisha against the company, to honour its
 commitments made to the Company as directed by the Hon''ble High Court
 of Odisha and upheld by the Hon''ble Supreme Court. The Management is of
 the view that no provision against the said demand is necessary, as no
 liability is likely to arise on this account and Rs.81.04 lacs paid in
 earlier year and included under advances recoverable has been
 considered good of recovery.
 
 3.  Government of Odisha has issued Demand Notice for Rs.1070.72 lacs
 towards Licence fees, Import fees, Excise Duty, Pass fees, Application
 fees on import of Methanol into Odisha without obtaining licence from
 competent authority from the year 2002-03 to 2008-09.
 
 The Company, after obtaining licence from relevant authorities, has
 challenged above demand on the ground that as methanol is imported from
 other countries, provision of Odisha Excise (Methanol Alcohol) Rules
 1976 are not applicable for use of Methanol as raw material.
 
 The Company has obtained interim stay on above matter from the Hon''ble
 High Court of Odisha at Cuttack on 20.11.08 for Rs.847.00 lacs &
 Rs.223.57 lacs furnished under Indemnity Bond.
 
 Pass fees paid for import of Methanol into Odisha amounting to Rs.
 224.41 lacs for the year 2007-08, 2008-09,2009-10 , 2010-11 & 2011-12
 has been shown as advance which is considered as good for recovery,
 since the management is of the view that no liability is likely to
 arise on this account in future.
 
 4.  Demand for Rs.27.32 Lacs against Delay Payment Surcharge from
 Odisha State Electricity Board has not been accepted by the Company and
 the matter is under dispute. However, as a matter of abundant caution
 an equivalent amount has been provided for to take care of the
 liability, if any, in this respect.
 
 5.  SEGMENT INFORMATION
 
 a) The Company operates in one segment only i.e.  Medium Density Fibre
 Board and accordingly information required under Accounting Standard-17
 issued by Central Government is not applicable.
 
 b) In order to sustain long-term availability of firewood, principal
 raw material for the Company''s main product- Medium Density Fibre
 Board, the Company is engaged in plantation under various schemes on
 the land owned by third parties. The Company''s role is to develop and
 supply seedlings to such third parties. Since development of seedlings
 is an integral part of plantation activity which is incidental to main
 activity of the Company, this operation has not been treated as a
 separate segment under Accounting Standard- 17 issued by Central
 Government.
 
 6.  Tax credit shall be allowed to the extent of amount of MAT paid in
 earlier years depending upon the profits earned by the Company in
 future years, in accordance with the provisions of Section 115JAA of
 the Income Tax Act, 1961.
 
 7.  Salaries and Wages aggregating to Rs.20.69 Lacs (Previous year
 Rs.15.41 Lacs) identifiable with forest operation have been allocated
 directly to respective functional account heads instead of debiting to
 primary heads of account.
 
 8.  In accordance with the licence granted by the Government of Odisha
 in the year 1986, the Company had undertaken plantation in certain
 Government land which is ready for harvesting. Despite consistent
 follow up, the Government did not allow the Company to harvest the
 plantation on the pretext that the Special Leave Petition filed by the
 Government of Odisha was pending before the Hon''ble Supreme Court. The
 Hon''ble Supreme Court had dismissed the Special Leave Petition filed by
 the Government of Odisha in the royalty matter, as referred to in Note
 No.2 above. Since the Government of Odisha had not allowed the Company
 to harvest the plantation done by the Company even after the dismissal
 of Special Leave Petition filed by the Government of Odisha, the
 Company had no alternative but to file a Writ Petition in the High
 Court of Odisha seeking direction to allow the Company to harvest the
 plantation done by the Company on its own cost on Government land and
 also other stipulations relating to rate of royalty and weighment
 norms. The Hon''ble High Court of Odisha had vide its order dated 8th
 July, 2004, had without expressing any opinion with regard to merits of
 the contentions raised by the company, disposed of the petition with a
 direction to the Government of Odisha and its various officers to
 dispose of the representations made to them strictly in accordance with
 law as expeditiously as possible preferably within a period of six
 months. In compliance with the directions from the Hon''ble High Court
 of Odisha, the Government has reiterated its claim for recovering cost
 of plantation on 244.825 hectares. The Company has denied its liability
 to any such claim.
 
 9.  The Company has undertaken Plantation under Farm Forestry Scheme,
 inter-alia, in the State of Chhattisgarh in association with the forest
 department of Chhattisgarh Government. As per the agreement part sale
 consideration of supply of seedlings is to be paid to the Company at
 the time of harvesting of the plantation.  Accordingly, part sale
 consideration of Rs. 73.38 lacs (Previous year Rs. 73.38 lacs) relating
 to previous years along with interest will be received by the company
 at the time of harvesting. Based on the legal opinion obtained by the
 company, the same will be accounted for in the year in which the
 plantation is harvested.
 
 10.  Pursuant to Rehabilitation scheme Sanctioned by Board of
 Industrial & Financial Reconstruction (BIFR), the Company is exempted
 from payment of electricity duty on power consumed for a period of 10
 years from the date of sanction of the scheme. BIFR has discharged the
 company from the purview of Sick Industrial Companies (Special
 Provision) Act,1985.
 
 Accordingly Rs. 197.75 Lacs being amount paid for the period from 1st
 April, 2000 to 31st March, 2008 and considered as income in earlier
 years have been shown as Other Advance under Long Term Advance.
 
 Based on legal opinion obtained by the company, all terms and
 conditions so far not implemented by respective agencies as stated in
 the Rehabilitation Scheme sanctioned by BIFR are still in force.
 
 11.  The Company''s CDM Project has been registered at
 
 UNFCCC and is currently undergoing verification for actual
 quantification of emission reduction.
 
 12 (i) Trade Receivables outstanding for more than six months from the
 date they are due for payment amounts to Rs. 144.27 Lacs (Previous Year
 Rs. 142.34 Lacs) which have become overdue. Legal and other persuasive
 steps have been taken for recovery of such debtors. Such debtors have
 been considered good and eventually recoverable. Accordingly, no
 provision against the same has been considered necessary.
 
 (ii) Trade Receivables amounting to Rs. 64.91 lacs (Previous Year- Nil)
 considered as doubtful of recovery in the earlier years, have been
 written off during the year, which has been adjusted against provision
 for doubtful debts.
 
 13.  EMPLOYEES BENEFIT
 
 (I) Defined Benefit Plans Gratuity
 
 The Company provides for gratuity, a defined benefit retirement plan
 covering eligible employees. As per the scheme of the Gratuity Fund
 Trust, administered and managed by the Independent Board of Trustees,
 the Company first makes the 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 and
 then gets the reimbursement from it. Vesting occurs upon completion of
 five years of service. Liabilities with regard to the Gratuity Plan are
 determined by actuarial valuation.
 
 Leave Encashment
 
 The Company makes the annual provision in the Profit & Loss statement
 for the leave liability on the basis of the actuarial valuation for the
 Leave encashment Scheme which is an unfunded Plan for the qualified
 employees.
 
 (II) Defined Contribution Plans Provident Fund
 
 The employees of the company receive defined contribution for Provident
 Fund benefit. Aggregate contributions along with interest thereon are
 paid at retirement, death, incapacitation or termination of employment.
 Both the employees and the company make monthly contributions at
 specified percentage of the employee''s salary to the concerned
 Provident Fund Authorities. The company has no liability to Fund the
 shortfall in the interest over the statutory rate declared by the
 Government.
 
 Superannuation Fund
 
 The Company has the Superannuation Scheme for the executive cadre of
 employees viz President, Sr.  Vice President and Vice President, who
 has completed 5 years of continuous service. The Company makes the
 defined contribution on annual basis for the eligible employees to the
 Trust fund, which is administered and managed by the Independent Board
 of Trustees. The Company forwards the settlement request of the vested
 employees at retirement, death, incapacitation to the Fund. Fund makes
 the payment of the commuted value and buys the annuity for the
 uncommuted credit balance of the concerned members. This year no
 executive is entitled under this scheme.
 
 Employees State Insurance
 
 Both the employees and the company make monthly contributions at
 specified percentage of the employee''s salary to the concerned ESI
 Authorities.
 
 Other Defined contribution for Employee Benefits
 
 The defined contribution for Employees State Insurance, Leave Travel
 Allowance and Medical reimbursements are recognized on actual basis in
 the Profit & Loss Statement in the year when the eligible employee
 actually renders the service.
 
 14.  i) The Gratuity scheme is invested in a Group Gratuity policy
 offered by Life Insurance Corporation (LIC) of India. The information
 on the allocation of the fund into major asset classes and expected
 return on each major class are not readily available. The expected rate
 of return on plan assets is based on the assumed rate of return
 provided by company''s Actuary.
 
 ii) The Leave Encashment scheme is invested in a Group Leave Encashment
 policy offered by Life Insurance Corporation (LIC) of India. The
 information on the allocation of the fund into major asset classes and
 expected return on each major class are not readily available. The
 expected rate of return on plan assets is based on the assumed rate of
 return provided by company''s Actuary.
 
 15.  DERIVATIVE INSTRUMENTS
 
 The Company does not enter into any derivative instruments for trading
 or speculative purposes.
 
 16.  MICRO ENTERPRISES AND SMALL ENTERPRISES
 
 There are no Micro and Small enterprises, to whom the Company owes
 dues, which are outstanding for more than 45 days as at 31st March,
 2012. This information as required to be disclosed under the Micro,
 Small and Medium Enterprises Development Act, 2006 has been determined
 to the extent such parties have identified on the basis of information
 available with the Company. This has been relied upon by the auditors.
 
 17.  Figures are expressed in Rupees in Lacs.
 
 18.  Previous year''s figures have been regrouped / rearranged wherever
 considered necessary.