I.  BALANCE SHEET:
 
 A.  FIXED ASSETS & CAPITAL WORK-IN-PROGRESS:
 
 a) The Government of Tamil Nadu allotted land to TNPL for construction
 of Corporate Office building for Rs.44.37 lakh. The transfer of title
 of the said Land in favour of the company is yet to be done pending
 completion of necessary formalities.
 
 b) The Company availed of lease finance for 4 Nos of 750KW capacity
 each Wind Electric Generators in 2001 with lease rentals payable upto
 31.03.2007. The Company has not opted for a secondary lease and hence
 no provision is made for secondary lease rent in the books. The formal
 transfer of assets by the lessor to TNPL is pending completion of
 certain formalities.
 
 d) Estimated amount of contracts remaining to be executed on Capital
 Account and not provided for is Rs. 17759.52 Lakh (Previous year
 Rs.11187.51 lakh).
 
 e) The company has entered into an agreement with M/s. Sakthi Sugars
 Limited (SSL), Appakudal for procurement of bagasse on a fuel
 substitution. As per the terms of the agreement, TNPL would bear
 initially entire capital cost. The sugar mill has to reimburse the 50%
 of the capital cost and pay the same in 35 quarterly instalments
 bearing interest @ 9%. On completion of the payment, TNPL and the sugar
 mill will have joint ownership and equal rights on the assets installed
 at Appakudal.
 
 B.  CAPTIVE PLANTATIONS/FARM FORESTRY
 
 a) The Company has taken over 244.28 hectares of waste land for captive
 plantation from the Government of Tamilnadu valid for a period ranging
 from 22 years to 30 years and 582.440 hectares from Private Land Owners
 for a period of six years through lease agreement and 1685.41 hectares
 under revenue sharing basis
 
 d) Farm Forestry Expenditure
 
 Farm Forestry Expenditure is charged-off to the Profit and Loss
 Account, in the year in which it is incurred, since it could not be
 matched with wood procured from farmers.
 
 C.  DEBTORS, CREDITORS AND LOANS & ADVANCES:
 
 a) Confirmation of balances from Debtors, Creditors and for Loans and
 Advances, have been received and the same is being reconciled.
 
 b) Based on confirmation received from the suppliers regarding status
 under the Micro, Small and Medium Enterprises Development Act, 2006
 (the act)
 
 a) Amount due and outstanding to suppliers as at the end of accounting
 year Rs.131.69 lakh
 
 b) Interest paid during the year Nil
 
 c) Interest payable at the end of the accounting year, and Nil
 
 d) Interest accrued and unpaid at the end of the accounting year Nil
 
 D.  CURRENT LIABILITIES AND PROVISIONS:
 
 Current Liabilities:
 
 Other Liabilities: This includes Rs.24.10 Crore being the guarantee
 commission in respect of IBRD loan guaranteed by Govt, of India, lying
 since 2002.
 
 Work-in-Process
 
 Paper in process is valued at cost which includes cost of inputs,net of
 taxes and duties eligible for credit and overheads upto the stage of
 completion.
 
 A. AS 15-Employee Benefit
 
 a) The fair value of the asset of the provident fund trust including
 the return on the assets thereof, as on the balance sheet date is
 greater than the obligations under the defined contribution plan, as
 determined by the actuary and requires no further charge to profit and
 loss account.
 
 G.  IMPAIRMENT OF ASSETS (AS 28):
 
 The recoverable amount is higher than the carrying amount of the
 cash generating units and hence there is no impairment of losses under
 AS - 28.
 
 H.  CONTINGENT LIABILITIES (AS 29):
 
                                                    (Rs. In Lakh)
 
                           Estimated Amount
 
 SI.  Description of the   As at      As at      Indication of  Possible
 No   Contingent Liability 31.03.2011 31.03.2010 Uncertainty    Recovery
                                                                  if
                                                                liability
                                                                 arises
 
 a) Letters of Credit 
 issued by Banks on          3926.26     7125.72 Performance or
 behalf of Company                               Non-performance    Nil
                                                  of various 
                                                   parties.
 
 b) Guarantees issued 
 by the Banks on             1834.85     2648.92       -do-         Nil 
 behalf of the Company
 
 c) Claims against 
 the Company not                                  All are disputed 
 acknowledged as
 debts relating to                                before concerned
 Statutory Dues: -                                   appellate
 
 a) Income Tax                865.32     4267.44  authorities. The
 
 b) Wealth-tax                 19.46       19.46  company is        Nil
 
 c) Customs Duty              271.21      271.21  advised that the
 
 d) Excise Duty             10600.95     9721.88  cases are
                                                  likely to
                                                  be disposed off
                                                  in favour of 
                                                  the company.
 
 d) Claims against 
 the Company not 
 acknowledged as 
 debts - Others: -
 
 i) Corporate Office 
 Land - Penal Interest        22.80       22.80  All are disputed
 
 ii) Land Acquisition 
 Claims                      131.54      130.00  before concerned
 
 iii) Cess on Land Lease 
 at Perungudi - Wind farm.    37.94       37.94  appellate
 
 iv) Interest on Water 
 Royalty Paid belatedly       82.48       82.48  authorities. The
 
 v) Others                   161.57       23.33  company is 
                                                 advised            Nil
                                                 that the cases 
                                                 are likely to be 
                                                 disposed off in
                                                 favour of the
                                                 company.
 
 e) Concession in Customs 
 Duty availed               4373.39     9855.60  Possibilities of
 for imports cleared 
 under Export                                    not meeting
 Promotion on Capital 
 Goods Scheme                                    minimum            Nil
                                                 export quantity
                                                 requirements by
                                                 the Company.
 
 f) Revenue sharing 
 agreement under
 captive plantation             NQ          NQ   Yield and price
                                                 payable not        NIL
                                                 quantifiable.
 
 g) Lease                     8.12        8.12                      NIL
 
 V.  GENERAL:
 
 a) Figures for the previous year have been
 regrouped/restated/reclassified wherever necessary to conform to
 current year''s classification.
 
 b) Amounts have been rounded off to the nearest two decimal points of
 lakh of rupees.