200909 - Quarter 2

Status of Investor Complaints for the quarter ended September 30,
2009

Complaints Pending at
the beginning of the quarter		Nil

Complaints Received during
the quarter
				01

Complaints disposed off during the quarter
			01

Complaints unresolved at the
end of the quarter 		Nil

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