a) The company has investments in ISG Traders Ltd. (ISG) and ISG has''
 in turn'' investments which from part of group''s controlling interest in
 several companies. In addition'' ISG has other investments in other
 classes of assets. Considering the fact that the company''s investments
 in ISG is of long term in nature'' revenue recognition with respect to
 diminution'' if any'' in the value of investments in ISG has not been
 considered necessary.
 
 a) In view of the inadequacy of profit'' excess remuneration of Rs.
 64.51 lacs (including Rs. 44.90 lacs for current year) of Whole-time
 Director and Managing Director is subject to approval of Central
 Government under clause C of Section II of Part II of Schedule XIII of
 Companies Act 1956. The remuneration payable to them is the minimum
 remuneration'' approved by the shareholders in the event of absence or
 inadequacy of profits. Application for Central Government approval has
 already been made.
 
 Note : Assumptions related to future salary increases'' attrition''
 interest rate for discount and overall expected rate of return on
 Assets have been considered based on relevant economic factors such as
 inflation'' market growth and other factors applicable to the year over
 which the obligation is expected to be settled.
 
 b) Salary/Wages Rs. 35.50 Lacs (Previous year Rs. 38.15 Lacs) Provident
 Fund and Employee State Insurance Rs. 1.97 Lacs (Previous year Rs. 1.93
 Lacs)'' Stores & components and repairs Rs 196.34 Lacs (Previous year
 Rs. 351.35 Lacs)'' Rent Rs. 3.15 Lacs (Previous year 4.83 Lacs)'' and
 Insurance Rs. 0.05 Lacs (Previous year Rs. 55 Lacs) have been
 classified functionally under other heads of accounts.
 
 1. Foreign currency exposure outstanding as on 31.03.2012 which has
 not been hedged Rs. 252.92 Lacs (Previous year Rs. 150.94 Lacs)
 
 2. Related Party disclosures as identified by the management in
 accordance with the Accounting Standard 18 :
 
 (a) Key Management Personnel and their relatives
 
 Mr. G. P. Goenka (Chairman)
 
 Mr. Shrivardhan Goenka (Director & son of the Chairman)
 
 Mr. M. Mishra (Managing Director)
 
 Mrs. M. Mishra (Wife of Managing Director)
 
 (b) Associates/Group Companies :
 
 (i) With whom the Company had transactions
 
 Duncans Industries Limited'' Duncans Tea Limited'' Gujarat Carbon and
 Industries Limited'' NRC Limited'' Andhra Cements Limited (erstwhile
 associate company)'' Silent Valley Investment Company Limited'' Kavita
 Marketing Private Limited'' ISG Traders Limited'' Subh Shanti Services
 Limited'' Sewand Investments Private Limited. Stone India Limited''
 Odyssey Travels Limited'' Unimers India Limited
 
 (ii) Others
 
 Albert Trading Company Private Limited'' Bargate Communications Private
 Limited'' Boydell Media Private Limited'' Continuous Forms (Calcutta)
 Limited'' Dail Consultants Limited'' Duncans Agro Chemicals Limited''
 North India Fertilisers Ltd.'' Duncans Tea House Pvt. Limited'' Infratech
 Software Services Private Limited'' Julex Commercial Company Limited''
 Leyden Leasing and Financial Services Limited'' Marleybone Travels and
 Resorts Private Limited'' Stone Solar Private Limited'' Octave
 Technologies Private Limited'' Orchard Holdings Private Limited''
 Pentonville Software Limited'' Santipara Tea Company Limited'' Skylight
 Trading Company Limited'' Sprint Trading Company Limited. Stone
 Intermodal Private Limited
 
 Note : (a) In respect of the above parties'' there is no provision for
 doubtful debts as on 31.03.2012 and no amount has been written off or
 written back during the year in respect of debts due from/to them.
 
 (b) The above related party information is as identified by the
 management and relied upon by the auditors
 
 3. Disclosure required vide clause 32 of the listing agreement
 
 (a) Amount of loans/advances in the nature of loans outstanding from
 Associate/Group companies as at the year'' ended 31st March 2012
 
 Notes on Financial statements for the year ended 31st March'' 2012
 
                                                      (Rs. in Lacs)
 
 4. Contingent Liabilities                     31.03.2012   31.03.2011
 
 A In respect of various demands raised which 
 in the opinion of the management are not
 tenable and are under appeal at various 
 stages :
 
 1.  Sales Tax including Trade Tax                 551.26       556.68
 
 2.  Entry Tax                                     237.50            -
 
 3.  Market Fee                                    176.00            -
 
 4.  Excise Duty                                    40.93         7.22
 
 5.  Electric Duty                                   2.70         2.70
 
 6.  Employees State Insurances Corp.                4.90         4.90
 (On Good Work Bonus)
 
 7.  Sales Tax on Royalty                           69.10            -
 
 8.  Liability for entry tax on fuel               169.83            -
 
 9 Liability in respect of Railway Plot Rent       201.14            -
 
 B Workers Claims                                   70.82        71.22
 
 C Income Tax                                      370.99            -
 
 5.  Estimated amount of contracts remaining to be executed on capital
 account (net of advances) Rs. 0.04 Lacs (Previous year Rs. 26.07 Lacs).
 
 6.  The company is engaged primarily in the business of Paper and
 all other activities are incidental thereto. Further'' the company sells
 primarily in the domestic market where its operations are governed by
 the same set of risks and returns and the overseas sales are
 insignificant.  Accordingly the seperate primary and secondary segment
 reporting disclosure as envisaged in Accounting Standards (AS-17) on
 Segment Reporting is not applicable to the company.
 
 7.  Figures have been given in Rupees Lacs and have been rounded off
 to the nearest thousand.
 
 8.  Previous year figures have been regrouped / reclassified to
 confirm with current year presentation'' whenever considered necessary