The have pleasure in presenting our 33rd Annual Report together with the
 audited accounts of the Company for the year ended 31st March, 2012.
 
 PERFORMANCE
 
 The working of the Company during the year under review has been
 highlighted below :
 
                                               Year ended  Year ended
                                               31.03.2012  31.03.2011
 
 Production (Tonnes)                              30767        42773
                                              Rs. in Lacs Rs. in Lacs
 
 Sales                                             9448        12271
 
 Other Income                                       248          237
 
                                                   9696        12508
 
 Gross Profit/(Loss)                               -887          834
 
 Less : Interest                                   1592         1351
 
 Depreciation for the year                          620          609
 
 Profit for the year before tax                   -3099        -1126
 
 Less : Provision for taxation                    -1400          -78
 
 Profit / (Loss) after taxation                   -1699        -1048
 
 Profit / (Loss) brought forward from last year   -1862         -814
 
 Loss carried to Balance Sheet                    -3561        -1862
 
 During the year 2012, the Company has manufactured 30,767 tons of paper
 with a net sale of Rs. 94.48 crores excluding taxes. The main reasons
 for loss are high interest cost, steep fall in margin of news print due
 to severe recession in demand and high level of duty free imports.
 Further, the prices of fuel and raw materials increased abruptly
 thereby increasing the cost of production. The Company faced severe
 cash crunch because of high interest rates charged by the banks &
 repayment of Loans. During the year under review, the Company has paid
 Rs 15.92 crores towards interest and Rs. 11.04 crores towards
 installments to the Banks.
 
 There has been an improvement in production and sales between April &
 June 2012 with production at 13,658 tons and gross sales at Rs. 48.24
 crores. The plant is running at around 75% capacity and can achieve
 over 100% capacity very shortly. The main drawback in increasing
 capacity utilization is severe weather condition and implementation of
 ongoing Capital Expenditure programme, which has necessistated periodic
 shut down of existing plant to synchronize the new equipments.
 
 Your Company manufactures writing, printing, news print and packaging
 paper on its three machines. The market condition for writing and
 printing paper is stable, however, MG varieties of paper is facing
 demand recession due to lower consumption of Packaging Industry. In
 case of news print, due to depreciation in rupee, the landed price of
 imported news print has increased and should give better price
 realisation for our newsprint in current year.
 
 The Company has been facing severe financial crunch despite induction
 of more than Rs. 30 crores by the promoters and increase in Working
 Capital Limits by the Banks. The major cause for the same is investment
 of Rs. 9.17 crores in the Capital Expenditure Programme as own
 contributuion and utilization of nearly Rs. 20 crores for Banks over
 dues. It should be appreciated, that, more than Rs. 80 crores has been
 paid by the Company during the last 4 years as interest and Term Loan
 repayment despite continued losses and very adverse industry scenario.
 
 CAPITAL EXPENDITURE SCHEME
 
 The Company has been sanctioned Term Loan of Rs 19 crores from Indian
 Bank Consortium for completion of Chemical Recovery Project Capex I and
 upgrdation of Agro Pulp Mill Capex II.
 
 The Capital Expenditure Scheme for Chemical Recovery Plant is under
 trial run. We have been able to successfully recover Soda Ash of
 commercial grade from our Chemical Recovery Plant. The Plant will not
 only solve the pollution control problem, but also will generate net
 revenue when fully operational, which will help in improving the
 financials of the Company.
 
 Capex I has been implemented in part and Capex II for Rs 10 crores will
 be implemented at the earliest.
 
 OPEN OFFER
 
 The Promoters of the Company, Shri Badri Vishal Tandon group and Shri
 Om Prakash Goenka group, have received permission for purchase of
 equity shares in open offer as per SEBI guidelines. The open offer was
 opened on 6th June 2012, closed on 25th June 2012 and 9,09,033 shares
 were successfully tendered to Shri Badri Vishal Tandon group and Shri
 Om Prakash Goenka group. This has resulted in increase in joint
 promoters'' holding by 69.44%.
 
 CLEAN DEVELOPMENT MECHANISM (CDM) PROJECT
 
 During the year under review, the Company would receive 24473 CERs for
 an activity from 1st January, 2010 to 31st December, 2010 from both
 Cogeneration Power Projects. The CDM Verification for Project II (Ref
 No. 0802, Monitoring Period 01/01/2011 to 31/12/2012) is likely to be
 started.
 
 DISCLOSURE OF PARTICULARS UNDER SECTION 217 (1) (E)
 
 Under the Companies (Disclosure of particulars in the Report of Board
 of Directors) Rules, 1988, the detailed information is enclosed as per
 Annexure-I.
 
 PUBLIC DEPOSIT UNDER SECTION 58-A
 
 During the year, because of continuous losses, the Company has not
 accepted/ renewed fixed deposits from public and shareholders and as on
 31st March, 2012, fixed deposits from the public and shareholders
 aggregated to Rs.197.66 lacs. The repayment of two deposits amounting
 to Rs 2.00 lacs could not be made for want of instruction thereof from
 depositors.
 
 DIRECTORS
 
 Shri C M Krishna and Brig.(Retd.) Shri Rajeev Lochan Singh SC,
 Directors of the Company, are retiring by rotation.
 
 Shri C M Krishna and Brig.(Retd.) Shri Rajeev Lochan SC, being eligible
 for re-election, have given their consent for the same.
 
 AUDITORS
 
 M/s. P.L.Gupta & Co., Chartered Accountants, Auditors of the Company,
 retire from their Office. They are, however, eligible for
 re-appointment and have furnished certificate to the effect that their
 appointment, if made, will be in accordance with the limits specified
 in Sub- Section (I-B) of Section 224 of the Companies Act, 1956. Your
 Directors recommend their re-appointment for the accounting year
 2012-13.
 
 PARTICULARS OF EMPLOYEES
 
 None of the Employee of the Company was in receipt of total
 remuneration of Rs.60,00,000/- during the financial year under review
 or Rs.5,00,000/- per month. Hence, the information under Section 217
 (2-A) of the Companies Act, 1956 read with the Companies (Particulars
 of Employees ) Rules, 1975 are not required to be furnished.
 
 CORPORATE GOVERNANCE CODE
 
 Your Company has complied with all the mandatory requirements of
 Corporate Governance. A detailed report on Corporate Governance and
 Management Discussion and Analysis forming part of the Directors''
 Report is enclosed as Annexure-II.
 
 The Statutory Auditors of the Company have examined the Company''s
 compliance to the Code of Corporate Governance and have certified the
 same, as required under SEBI guidelines. The certificate is reproduced
 with Corporate Governance Report to the Members.
 
 DIRECTORS'' RESPONSIBILITY STATEMENT
 
 Pursuant to the requirement under Section 217(2AA) of the Companies
 Act,1956 with respect to Directors'' Responsibility Statement, it is
 hereby confirmed:
 
 (i) that, in the preparation of the annual accounts for the financial
 year ended 31st March, 2012, the applicable accounting standards had
 been followed along with proper explanation relating to material
 departures;
 
 (ii) that, the Directors had selected such accounting policies and
 applied them consistently and made judgments and estimates that were
 reasonable and prudent so as to give a true and fair view of the state
 of affairs of the Company at the end of the financial year and of the
 profit or loss of the Company for the year under review;
 
 (iii) that, the Directors had taken proper and sufficient care for the
 maintenance of adequate accounting records in accordance with the
 provisions of the Companies Act, 1956 for safeguarding the assets of
 the Company and for preventing and detecting fraud and other
 irregularities;
 
 (iv) that, the Directors had prepared the accounts for the financial
 year ended 31st March, 2012 on a ''going concern'' basis.
 
 ACKNOWLEDGEMENT
 
 Your Directors would like to express their thanks to the Banks for
 their co-operation and assistance from time to time.  The Directors
 would also like to record their appreciation to the members of staff
 and workers, who in spite of constraints have been working hard for the
 Company and are maintaining cordial relations.
 
                               FOR AND ON BEHALF OF THE BOARD
 
                          GIRISH TANDON          ALANKAR TANDON
 
                          MANAGING DIRECTOR      EXECUTIVE DIRECTOR
 
 PLACE: ALLAHABAD
 
 DATED: 14th AUGUST, 2012