200909 - Quarter 1

1. The increase in performance over the first Quarter of the current
Financial year in terms of
EBIDTA is 29%, PBT is 124% and PAT is 115%.

2. Paper Machine
No.6 with an annual capacity of
67000 tonnes per annum is planned to be commissioned by the end of
financial year 2009-10.

3.
Pursuant to the notification dated March 31, 2009 of the Ministry of
Corporate Affairs. Government
of India, the Company had opted for accounting the exchange
differences arising on reporting of
long term foreign currency monetary terms in line with the companies
(Accounting Standards)
Amendment Rules 2009, on Accounting Standard AS 11 with effect from
April 2007. Due to change in
the Accounting Policy, the value of Fixed Assets has been reduced by
Rs.963.69 Lakhs and charge for
depreciation is less by Rs.27.27 Lakhs and consequently, profit for
the current period is less by Rs
936.42 Lakhs.

4. Tax expense comprises of Income-tax (MAT) and
Deferred Tax.

5. The
Company operates in one reportable segment of manufacture and sale of
pulp, paper and paper boards.
The generation and sale of power is not considered as a reportable
segment since, sale of power is
less than 10% of the total turnover.

6. With regard to Audit
observation on deferred tax for
the period ended September 30, 2009, the matter is subjudice before
the Calcutta High Court and
deferred tax has been provided at the effective income-tax rate
applicable to the Company, pending
disposal of the writ petition.

7. At the Annual General
Meeting held on September 25, 2009,
the shareholders approved rights issue of 7018242 Equity Shares of
Rs. 10/- each at a premium of
Rs. 40/- per share in the ratio at 3:11 aggregating to Rs 3509.12
Lakhs along with equivalent
number of warrant in the ratio of 1:1 to each equity share allotted
in the rights issue to be
converted into equity shares at Rs 10/- each at a premium of Rs.40/-
per share.

8. Previous
year/period figure have been regrouped wherever necessary.

9.
The above Audited Financial
Results have been reviewed by the Audit Committee and approved by the
Board of Directors at its
meeting held on October 23, 2009.

M K Tara
Managing
Director