1.  Nature of Operations:
 
 Orient Paper & Industries Ltd. is primarily engaged in manufacture &
 sale of Cement, Paper, Electrical Consumer Durables, Chemicals,
 Industrial Blowers and Air Pollution Control Equipments. The Company
 presently has manufacturing facilities at Devapur, Jalgaon, Amlai,
 Brajrajnagar, Faridabad & Kolkata.
 
                                          31st March, 
                                              2011      31st March, 
                                                          2010
 
 2.  Contingent Liabilities not 
 provided for in respect of:
 
 a) Outstanding bank guarantees             702.77       770.91
 
 b) Demands/claims by various Government 
 authorities and others not acknowledged 
 as debts and contested by the Company :
 
 i) Excise Duty                            2125.91      1928.81
 
 ii) Sales Tax                              931.64       883.85
 
 iii) Income Tax                           2875.45       145.20
 
 iv) Water Tax (Refer Note No.9 below)     2416.14     15257.03
 
 v) Others                                 6083.88      3117.04
 
                                          14433.32*    21331.93
 
 Against the above, payments have 
 been made under protest and/               533.51       487.05
 or debts have been withheld by 
 respective parties.
 
 c) Outstanding claims from employees not acknowledged as debts,
 including Bonus claims under adjudication and wages for suspension
 period at Brajrajnagar Unit.  Amount unascertainable
 
 d) The Company has filed a writ petition in the High Court of Jabalpur,
 contesting the order of Commissioner Commercial Tax in the case of IOC
 Ltd regarding taxability of furnace oil at par with diesel. Pending
 final disposal of this matter, the Company is unable to ascertain the
 impact of the order, if any, on the accounts of the Company.
 
 * Based on discussions with the solicitors/ favourable decisions in
 similar cases/legal opinions taken by the Company, the management
 believes that the Company has a good chance of success in
 above-mentioned cases and hence, no provision thereagainst is
 considered necessary.
 
 3. a) Pursuant to the Scheme of Amalgamation as approved by Honble
 High Court at Calcutta by an order dated 22nd November 2010 , all the
 assets and liabilities of OPI Export Limited(OPI), a wholly owned
 subsidiary of the Company, have been transferred to and vested in the
 Company from 1st April, 2010 at their book values.
 
 b) The Amalgamating Company (OPI) was engaged in the trading and
 investment business.
 
 d) Profit & Loss Account Debit balance of Rs. 8.22 lacs as on 1st April
 2010 of the Amalgamating Company after adjusting Rs. 0.50 Lac being the
 difference between carrying value of Companys investment in OPI and
 the amount of share capital appearing in the books of OPI, has been
 adjusted with General Reserve of the Company.
 
 4.  Charity & Donation includes Rs. Nil (Rs. 100 lacs ) paid to All
 India Congress Committee and Bhartiya Janata Party Rs. Nil (Rs. 50 lacs
 each) for political purposes.
 
 5.  As per approval of shareholders in the extra ordinary general
 meeting held on 7th March 2011, the Company has allotted 1,20,00,000
 share warrants on a preferential basis to certain promoter group
 companies on 18th March 2011. Each warrant is convertible (at the sole
 option of the warrant holder) into one equity share of Re 1/- each at a
 price of Rs. 57.25 per share at any time within a period of 18 months
 from the date of allotment.  Further, the Company has received 25%
 amount against each such warrant.
 
 6.  The Company has 29.34% share of interest valuing Rs. 413.92 lacs in
 its Joint Venture Company namely Pan African Paper Mills (EA) Limited,
 Kenya which is engaged in the manufacturing of Paper.
 
 The Company ceases to have joint control over the above Joint Venture
 Company subsequent to suspension of operations from 30th January, 2009
 and in view of the circumstances arising thereafter. Accordingly, no
 disclosure for interest in said Joint Venture asset, liabilities,
 income, expenses etc. have been made in these accounts.
 
 7.  Water Tax demand received from the Water Resources Department of
 the Government of Madhya Pradesh has been paid/provided to the extent
 of liability admitted by the Company for the period upto April, 2009
 i.e. the period prior to new agreement effective from May 2009 entered
 into with the Water Resource Department. No provision against the
 balance demand of Rs. 17076.58 lacs (including compounded interest and
 penalty) has been made since the Companys application for waiver
 thereof is under consideration by the government of Madhya Pradesh.
 
 Provision for Warranty
 
 A provision is recognized for expected warranty claims on products
 based on management estimate of present obligation in this regard
 during the warranty period, computed on the basis of past experience of
 levels of repairs and returns. It is expected that the entire provision
 will be utilized within two years of the Balance Sheet date, since the
 warranty period is generally for two years.
 
 Provision for Mining Restoration Costs
 
 The activities at the cement unit involve mining of land taken under
 lease. In terms of relevant statutes, the mining areas would require
 restoration at the end of the mining lease. The future restoration
 expenses are affected by a number of uncertainties, such as,
 technology, timing etc. As per the requirement of Accounting Standard
 –29, the management has estimated such future expenses on best judgment
 basis and provision thereof has been made in the accounts.
 
 8.  Excise Duty on sales has been reduced from sales in Profit & Loss
 Account and Excise Duty on increase/decrease in stocks has been
 considered as income/expenses in Profit & Loss Account.
 
 9.  Gratuity – Defined benefit plan
 
 The Company has a defined benefit gratuity plan. Every employee who has
 completed five years or more of service is entitled to Gratuity on
 terms not less favorable than the provisions of The Payment of Gratuity
 Act, 1972. The scheme is funded with an insurance company.
 
 ix) The estimates of future salary increases considered in actuarial
 valuation, take account of inflation, seniority, promotion and other
 relevant factors, such as supply and demand in the employment market.
 
 x) The Company expects to contribute Rs 475 lacs (Rs. 440 lacs) to
 Gratuity fund in 2011-2012.
 
 10. a) Derivative Instrument not for trading or speculation but as
 hedge of underlying transaction, outstanding as on the Balance Sheet
 date :- i) Forward contract in respect of foreign currency debtors of
 USD 1.20 million (USD Nil) and foreign currency creditors of JPY 1.59
 million (JPY 6.16 million) and CHF Nil (0.41 million).
 
 ii) Cross Currency Swap of JPY/INR Rs. 1683.91 lacs (Rs. 2525.85 lacs)
 and Rs. 604.78 lacs (Rs. 907.16 lacs) in respect of loan with interest
 rate @ 6 months JPY Libor plus 1.5% vis-a-vis fixed rate of 8.35% and
 8.25% respectively.
 
 iii) Cross Currency Swap of USD/INR Rs. 9470 lacs( Rs. 9470 Lacs) in
 respect of loan with interest rate @ 3 months USD Libor plus 2.5%
 vis-a-vis fixed rate of 8.50% .
 
 b) Foreign Currency exposures not hedged as on the Balance Sheet date
 :- Foreign Currency Debtors (including advances) and Creditors
 aggregating to Rs.909.53 lacs (Rs. 908.41 lacs) and Rs. 400.97 lacs
 (Rs. 321.90 lacs) respectively.
 
 11. In case of assets given on lease
 
 Operating Lease:
 
 The Company has leased out certain buildings on operating lease. The
 lease term is for 1-3 years and thereafter renewable.  There is
 escalation clause in the lease agreement. The rent is not based on any
 contingencies. There are no restrictions imposed by lease arrangements.
 The leases are cancelable.
 
 In case of assets taken on lease
 
 Operating Lease:
 
 Certain office premises, depots etc are obtained on operating lease.
 The lease term is for 1-3 years and renewable for further period either
 mutually or at the option of the Company. There is no escalation clause
 in the lease agreement. There are no restrictions imposed by lease
 arrangements. There are no subleases. The leases are cancelable.  (Rs.
 in lacs)
 
 12. Previous years figures have been regrouped and readjusted wherever
 necessary. Further, the current years figures being inclusive of
 figures of OPI Export Ltd. amalgamated with the Company w.e.f. 1st
 April, 2010 (pursuant to a scheme of amalgamation), are not comparable
 with the previous years figures.