a Unsecured Loans from others
 
 1) Interim dividend on Preference Shares and tax thereon and proposed
 dividend on equity shares and tax thereon is out of opening surplus.
 
 1. Term loans from IFC, Washington, Barclays Bank PLC & ICICI Bank
 Ltd., are secured by way of hypothecation on all movable assets both
 present and future and are secured by equitable mortgage of immovable
 assets , both present and future on pari-passu basis
 
 2. Loans from State Bank of Mysore are secured by second charge on plant
 and machinery acquired / to be acquired under the project whereas loan
 against Cenvat Receivables is also secured by hypothecation of the
 same.
 
 3 Interest free loan under Sales Tax Defferal Scheme availed from
 August 1994 to July 2006 of Rs.66.88 Crores is being repaid in 12
 installments of Rs.5.57 Crores payable yearly starting from August
 2006. (Balance outstanding - Rs.3344.10 lacs)
 
 Interest free loan under Sales Tax Defferal Scheme is being availed
 from June 2002 for a period of 12 years up to May 2014 and will be
 repayable in 12 installments on a year to year basis from 2014 to 2025.
 (Balance outstanding - Rs.8806.43 Lacs)
 
 4 There is no default in repayment of loans and interest.
 
 1.2 FIXED ASSETS
 
 1) Buildings are constructed on leasehold land for which the Company
 parts only ground rent except Non-factory buildings worth Rs.188.03
 Lakhs (Rs.188.03 Lakhs) being the cost of ownership premises.
 
 2) Leasehold Land represents the amount paid to Karnataka Industrial
 Area Development Board, Bangalore against allotment of land at
 Industrial Area, Mysore and Kesarolli village, Haliyal on Lease-
 cum-sale basis for a period of 11 years.
 
 3) During the current period, foreign exchange fluctuation loss
 amounting to Rs.10049.27 lakhs has been capitalized to the block of
 Plant & Machinery pursuant to notification No.G.S.R. 913 (E) dated
 29.12.2011, applicable upto March 31, 2020.
 
 4) Sales / Adjustments includes subsidy of Rs.50.00 Lakhs received from
 Government of Karnataka for Effluent Treatment Plant and impairment
 loss of Rs.102.59 Lakhs on Plant & Machinery which are reduced from
 their respective blocks.
 
 5) The Company has not incurred any capital expenditure for Research &
 Development during the year (Previous Year - Rs.15.45 lacs).
 
 [All amounts in Rupees Lakhs, except share data and unless otherwise
 stated]
 
                                                  2012         2011
 
 1.2 CONTINGENT LIABILITIES AND COMMITMENTS
 
 I.  Contingent Liabilities & Commitments
 
 a Guarantees Issued by Banks                 2,892.45     3,599.66
 
 b Letters of Credit outstanding              1,921.58     2,685.24
 
 c Corporate guarantee given to the Banks
  & Institutions on behalf of related
  party - Rama Newsprint & Papers Limited.   19.720.23    12.067.54
 
 
 II.  Claims against the Company not 
 acknowledged as debts in respect of
 
 a Income tax matters, pending decisions 
 on various appeals made by the Company 
 and by the Department (refer notes below)     9,606.00    5,518.65        
 b Excise
 matters & Service Tax under dispute              26.24       13.75
 
 c Sales Tax matter, under dispute                30.66       30.66
 
 cl Other matters, under dispute               2,100.00    2,100.00
 
 III.  Estimated amount of contracts 
 remaining to be executed on Capital
 account and not provided for 
 (net of advance)                                 293.73   1,520.36
 
 
 1 The Income tax assessments of the Company have been completed upto
 Assessment Year 2009-10.
 
 2 The Total demand outstanding as on 31.03.2012 on account of income
 tax dues for various assessment years is Rs.9606 lacs (Rs.5518.65
 lacs). The Company and the Income Tax Department are in appeal before
 the Appellate authorities for various assessment years. Since most of
 the issues raised in these years are already covered by the decisions
 of Hon''ble Income Tax Appellate Tribunal and CIT(A) in Company''s
 favour, the Company is of the opinion that the demands are likely to be
 either deleted or substantially reduced in appeal before appellate
 authorities and in view of this, the Company has decided to adjust the
 short/excess provision, if any, after the appeals are disposed off.
 
 3 The Company and the Income Tax Department are in appeal before the
 High Court of Bombay on various grounds decided by the Income Tax
 Appellate Tribunal. The Company has therefore not recorded adjustment
 of Taxes in the books.
 
 1.3 RELATED PARTY DISCLORUES
 
 a.  Related parties where control exists or where significant influence
 exists and with whom transactions have taken place during the year :
 
 Associate Company
 
 1 Fort Gloster Industries Ltd., Kolkata (FGI)
 
 2) Rama Newsprint & Papers Limited (RNPL) Enterprises where principal
 shareholders have control
 
 
 1) Veer Enterprises Ltd.
 
 2) Shree Satyanarayan Investment Company Ltd.
 
 3) Siddhi Trade & Holdings Pvt.Ltd.
 
 4) Rangnath Bangur Charitable Trust
 
 Key Management Personnel represented on the Board
 
 1) Shri S.K.Bangur, Chairman & Managing Director
 
 
 2) Shri K. L.Chandak, Executive Director Non-Executive/Independent
 Directors on the Board
 
 
 1) Shri R.N.Mody
 
 2) Shri C.K.Somany
 
 3) Shri P N Kapadia
 
 4) Lt.Gen.fRetd.] Utpal Bhattacharyya
 
 5) Shri Krishna Kumar Karwa
 
 6) Shri Sanjay Kothari
 
 7) Shri M P Taparia
 
 8) Shri Saurabh Bangur
 
 9) Smt Shashi Devi Bangur
 
 
 1.4 SEGMENT INFORMATION
 
 
 The Company is in the business of Manufacture & Sale of Paper and Paper
 Boards & Duplex Boards. Considering the core activities of the Company,
 management is of the view that manufacture and sale of Paper and Paper
 Boards & Duplex Boards is the only reportable business segment and
 hence information relating to primary segment is not required to be
 disclosed.
 
 1.5 NOTE ON DEPRECIATION
 
 During the current year company has retrospectively changed the method
 of providing depreciation on New Fibre Line & Chemical Recovery Island
 from Straight Line Method to Written Down value Method due to
 technological changes.  Differential depreciation of earlier years
 amounting to Rs. 6219.78 Lacs (shown as an exceptional items) and that
 of current year of Rs. 4216.42 Lacs is charged to Profit & Loss Account
 for the year due to which the loss for the current year has been
 overstated to that extent.
 
 1.6 The Company had paid an amount of Rs. 362.22 lacs towards the
 invocation of Bank Guarantee given to a Bank on behalf of Speciality
 Coatings and Laminations Ltd (SPCL).The Company has also to recover Rs.
 27.41 lacs against supplies made to SPCL. The Company is hopeful of
 recovering the said amount out of disposal of the assets of SPCL and
 hence, no provision has been made in the books of accounts.
 
 1.7 The Company has investment of Rs. 4540.86 lacs in Rama Newsprint &
 Papers Ltd. (RNPL). At the year end there has been substantial
 reduction in the market value of this investment by Rs 2895.24 lacs.
 The company has not made any provision towards the diminution in value
 as said investment is a long term trade investment and diminution in
 value is temporary in nature.
 
 1.8 The company has paid minimum managerial remuneration to the
 Chairman & Managing Director of Rs, 89.23 lacs and Executive Director
 of Rs. 79.63 lacs as per Schedule XIII of the Companies Act, 1956
 subject to approval of members in the AGM to be held on 31.07.2012 and
 Central government in respect of the former.
 
 1.9 Previous year''s figures have been regrouped and reclassified
 wherever necessary.