Bilt 2017
Bilt 2017
Bilt 2017
1
2 BALLARPUR INDUSTRIES LIMITED
ANNUAL REPORT 2016-17
CONTENTS
02BOARD OF
DIRECTORS
04
AWARDS
05
CHAIRMAN'S
LETTER
07MANAGEMENT
DISCUSSION &
ANALYSIS
14
CORPORATE
GOVERNANCE
24
BOARD'S
REPORT
42INDEPENDENT
AUDITORS’
REPORT 48
BALANCE
SHEET
49
STATEMENT OF
PROFIT AND LOSS
50CASH FLOW
STATEMENT
51
STATEMENT OF
CHANGES IN
EQUITY
52
SIGNIFICANT
ACCOUNTING
POLICIES AND
NOTES TO THE
FINANCIAL
STATEMENTS
84CONSOLIDATED
FINANCIALS
1
BOARD OF DIRECTORS
GAUTAM THAPAR
Chairman
R. R. VEDERAH
Non Executive Vice Chairman
B. HARIHARAN
Group Director (Finance)
SANjAY LABROO
A. S. DULAT
ASHISH GUHA
B. VENUGOPAL
Nominee of LIC
A. P. SINGH
SUDHIR MATHUR
OPERATING OFFICE
First India Place, Tower-C, Block-A,
Sushant Lok I, Mehrauli Gurgaon Road,
Gurugram – 122002
HEAD OFFICE
Thapar House, 124 Janpath,
New Delhi – 110001
AUDITORS
K.K. Mankeshwar & Co.,
Chartered Accountants
Kingsway, Nagpur – 440001
BOARD OF DIRECTORS 3
ANNUAL REPORT 2016-17
AWARDS
UNIT BALLARPUR
National Energy Conservation Award 2015-16
First Prize from Bureau of Energy Efficiency (BEE), Ministry of Power, Government of India.
UNIT BHIGWAN
State Level Energy Conservation Award 2015-16
Second Prize from Maharashtra Energy Development Agency, Pune (MEDA).
UNIT SEWA
Kalinga Safety Award 2015 - Silver Category
From Odisha Safety Conclave.
CHAIRMAN'S LETTER 5
ANNUAL REPORT 2016-17
and paperboard to zero. Moreover, as I On 31 May 2017, these conditions were Once both these schemes go through, your
had mentioned in my last year’s letter to recommended to the shareholders for Company will have financial headroom to
you, SFI has not been able to generate approval through a postal ballot. Over 99% get back to normal operations, which ought
sufficient returns, largely on account of an of the shareholders who voted, approved to generate higher sales and better results
unrealistically strong Malaysian Ringgit. the financial restructuring scheme. in the years to come. In addition, the Board
The consequences are what you see today: remains on the lookout to sell SFI, a non-core
severe liquidity constraints that have come Consequently, your Company is now asset that is now financially classified as a
in the way of increasing production and empowered to create and issue up to 68.23 ‘discontinued operation’. The Board will also
revenues; and, given the high finance costs, crore equity shares each with a face value be carefully looking at the financial viability
profits turning into losses. of ` 2, at ` 15.83 per share, which is the of some other Units burden. If these remain
price determined in the SDR scheme. These questionable, even under an environment of
What are we doing about it? We had earlier shares will be allotted to banks and financial a lower debt-servicing, the Board will take
tried to access equity capital markets institutions according to the proportion of necessary steps to divest them as well.
twice; unfortunately without success due their outstanding loan exposure to BILT.
to the prolonged after-effects of the global After the allotment, the Joint Lenders Forum I look forward to a financially viable
financial crash. will collectively own 51% of the fully paid up and leaner BILT — one which can earn
equity share capital of your Company. greater revenues despite tight competitive
This time around, for the standalone entity
conditions and do so with lower unit costs.
- BILT, your Company’s Board of Directors While this debt-to-equity conversion sharply The breathing room has been given. It is
authorised a Committee of Directors reduces the shareholding percentage of the now up to your Company’s management
to consider and recommend a financial promoter group, it is the correct thing to do to deliver, as I hope it shall in FY2018 and
restructuring plan under the Strategic Debt to resuscitate the health of your Company. thereafter.
Restructuring (SDR) scheme of the Reserve By significantly reducing the debt overhang
Bank of India. Based on the Committee’s Thank you for your support in the last few
even at the standalone level, BILT benefits
work, the Board recommended: challenging years. Let us hope that with your
from lower debt-servicing costs. All else
support and the Management’s best efforts,
• Reclassification of the Company’s being equal, it gets the necessary additional
your Company will profitably stride forth yet
authorised share capital by which it (a) liquidity to ramp up production and
again.
doubled the number of ordinary equity revenues, which it could not earlier because
shares having a face value of ` 2 each of cash constraints. With best wishes,
from 75 crore shares to 150 crore shares;
I should also mention that your Company’s
and (b) reduced preference shares
step-down subsidiary, BILT Graphic Paper
having a face value of ` 100 each from GAUTAM THAPAR
Products Limited, also has a large debt
2.5 crore shares to 1 crore shares. Chairman
position. The Management is presently
• Converting a significant part of the formulating a deep debt recasting plan,
outstanding debt to equity by issuing which includes working with an asset
equity shares through preferential restructuring company. As I write, a process
allotment to the accepting parties is actively being pursued to restructure the
comprising the Joint Lenders Forum loan and infuse additional capital to turn
under the SDR scheme. around the business.
* This section contains material development post the approval of the MDNA by the Board of Directors.
NAME OF THE DESIGNATION CATEGORY ATTENDANCE PARTICULARS NO. OF DIRECTORSHIPS AND COMMITTEE
DIRECTORS MEMBERSHIPS / CHAIRMANSHIPS IN OTHER
PUBLIC LIMITED COMPANIES*
NUMBER OF BOARD DIRECTORSHIPS COMMITTEE
MEETINGS UNDER TENURE
HELD ATTENDED LAST MEMBERSHIP CHAIRMANSHIP
AGM#
Mr. Gautam Thapar Chairman Non Executive, 4 4 No 8 2 1
Promoter
Mr. R. R. Vederah Vice Chairman Non-Executive 4 4 No 5 3 -
Mr. B. Hariharan Group Director Executive 4 4 Yes 9 5 2
(Finance)
Mr. Sanjay Labroo Director Independent 4 4 No 8 3 1
Mr. A. S. Dulat Director Independent 4 4 Yes 2 1 1
Mr. A. P. Singh Director Independent 4 4 Yes - - -
Mr. Ashish Guha Director Independent 4 4 No 1 1 -
Mr. B. Venugopal Director Non-Executive 4 1 No - - -
(LIC nominee)
Ms. Nandini Adya^ Director Independent 4 3 No 1 1 -
Mr. Sudhir Mathur@ Additional Director Independent 1 1 N.A - - -
CORPORATE GOVERNANCE 15
ANNUAL REPORT 2016-17
TABLE 2 DETAILS OF REMUNERATION OF THE DIRECTORS
AMOUNT IN `
NAME OF THE SALARY AND PROVIDENT COMMISSION SITTING FEES TOTAL
DIRECTORS PERQUISITES FUND AND PAYABLE
SUPERANNUATION
FUND
Mr. Gautam Thapar - - - 1,20,000 1,20,000
Mr. R. R. Vederah - - - 1,00,000 1,00.000
Mr. B. Hariharan - - - - -
Mr. Sanjay Labroo - - - 80,000 80,000
Mr. A. S. Dulat - - - 2,60,000 2,60,000
Mr. Ashish Guha - - - 2,20,000 2,20,000
Mr. B. Venugopal - - - 20,000 20,000
Mr. A. P. Singh - - - 2,20,000 2,20,000
Ms. Nandini Adya^ - - - 80,000 80,000
Mr. Sudhir Mathur@ - - - 20,000 20,000
^ Resigned from Directorship with effect from 19 May, 2017.
@ Appointed as an Additional Director (Independent) by the Board on 7 February, 2017.
All members of the Audit Committee have suggesting / implementing ways and means DISCLOSURES OF MATERIAL TRANSACTIONS
accounting and financial management for eliminating / minimizing risks to the
Considering the size and nature of
expertise. The Committee acts as a link business of the Company and periodic review
between the Management, Auditors and of the management control procedures / operations, there were no related party
the Board of Directors of the Company and tools used to mitigate such risks. transactions of a materially significant
has full access to financial information. The nature in terms of the Listing Regulations
STAkEHOLDERS RELATIONSHIP COMMITTEE that could have a potential conflict with the
Company Secretary of the Company acts
as the Secretary to the Committee. The interests of the Company at large. Other
The Board has constituted the Stakeholders
Group Director (Finance), Chief Executive related party transactions, which were in
Relationship Committee, with the
Officer, Head of Internal Audit, other composition as provided in Table 3. ordinary course of business and on arm’s
relevant officials of the Company and the length basis, are disclosed in the Notes to
representatives of the Statutory Auditors A meeting was held on 19 May, 2017 and the Financial Statements.
had attended the meeting(s) as invitees, was attended by all its members.
ACCOUNTING POLICIES
whenever required. During the financial year ended 31 March,
2017, 9 complaints were received from the The Company has adopted accounting
In addition to review of the financial results
Investors / Shareholders and all of them treatments, which are in conformity
of the Company, update on internal audits of
were redressed / resolved. with those prescribed by the applicable
various functions, review of internal control
Accounting Standards.
systems, applicability and compliance of CORPORATE SOCIAL RESPONSIBILITY
various laws, related party transactions, COMMITTEE INSIDER TRADING
reappointment and remuneration of
statutory auditors / branch auditors / cost The Board has constituted the Committee, In compliance with the SEBI regulations on
auditors, cost accounting systems and audit with the composition as provided in Table prevention of insider trading, the Company
reports features on the Audit Committee’s 3. The mandate of the Committee is in has a Code of conduct to regulate, monitor
Agenda. compliance with the requirements of the & report trading by Insiders (The Code). The
provisions of Section 135 of the Companies Code lays down guidelines, which provides
Further, the Committee also oversees Act, 2013. The Committee has formulated procedures to be followed and disclosures to
the vigil mechanism, as required by the and recommended to the Board of Directors, be made, while dealing in securities of the
provisions of the Companies Act, 2013. a Corporate Social Responsibility Policy, Company by persons governed by the code.
NOMINATION AND REMUNERATION guidance on the activities to be undertaken
by the Company, amount to be spent on INFORMATION FOR SHAREHOLDERS
COMMITTEE
CSR and shall monitor the same from time DISCLOSURE REGARDING APPOINTMENT
During the year ended 31 March, 2017, to time. The Corporate Social Responsibility AND / RE-APPOINTMENT
the Committee met on 7 February, 2017. Committee meeting has been held on 30
All Committee members had attended May, 2016 and was attended by Ms. Nandini Mr. Sudhir Mathur, aged 55 Years, was
the same. The Board has constituted Adya and Mr. R.R Vederah. appointed as an Additional Director
the Committee, with the composition as (Independent) by the Board of Directors in
provided in Table 3 with the mandate in The Board of Directors in its meeting held on
its meeting held on 7 February, 2017. His
compliance of the requirements of the 21 April, 2017 changed the constitution of
appointment is recommended for approval
provisions of Section 178 of the Companies the Committee . Consequently following are
of members at the forthcoming Annual
Act, 2013 and Regulation 19 of Listing the members of the Committee:
General Meeting of the Company. A brief
Regulations. The Committee has formulated Mr. Gautam Thapar- Chairman profile of Mr. Mathur is given hereunder:
criteria and policy for the identification /
appointment of Directors, key managerial Mr. R.R. Vederah Mr. Sudhir Mathur holds an MBA degree
personnel and senior management, their from Cornell University, USA. Mr. Mathur
Mr. Sudhir Mathur
remuneration and evaluation. An excerpt of has about 30 years of experience and was
the said policy is annexed herewith. MANAGEMENT associated with the Company till 2004 as
President & CFO. He has also worked for
RISk MANAGEMENT COMMITTEE MANAGEMENT DISCUSSION AND ANALYSIS
Idea Cellular, Aircel, GMR and Cairn at
REPORT
The Board had constituted the Committee to various senior level positions of increasing
understand and assess various kinds of risks This is given as a separate Chapter in the responsibility. Mr. Mathur does not have any
associated with the running of business and Annual Report. relationship with any Director inter-se.
CORPORATE GOVERNANCE 17
ANNUAL REPORT 2016-17
TABLE 5 DETAILS OF OTHER DIRECTORSHIPS AND MEMBERSHIPS OF COMMITTEES OF BOARDS
As per the provisions of the Companies Act, as joint Chief Executive Officer, overseeing The Company sends its Annual Report
2013, Mr. R. R. Vederah retires by rotation the management and operations of the including Standalone and Consolidated
at the forthcoming Annual General Meeting. company until 1997. financials as well as other shareholder
Mr. Vederah does not have any relationship correspondence by email, to those
From 1997, Mr. Vederah served in various
with any Director inter-se. The details of his shareholders whose e-mail addresses
senior management positions within BILT,
other Directorships and memberships of are registered with the Company / their
holding the last position as Managing
committees of Board in other public limited depository participants. However, in case
Director and Executive Vice Chairman until
companies are given in Table 5. Shareholders desire to receive a physical
June 2014 and was responsible for overall
management operations, implementation copy of the Annual Report, the Company will
A brief profile of Mr. Vederah is given
of business strategy, new technology and be happy to provide the same upon request.
hereunder:
quality initiatives aimed at achieving market The financial results of the Company are
Mr. R. R. Vederah has more than 43 years leadership position in the South Asian published in The Financial Express (all
of experience in the paper and other Region, acquisitions & integration of SFI
editions) and Loksatta (Nagpur: Marathi
industries, and had been part of the Senior and major expansions at Units Bhigwan,
edition) and are simultaneously uploaded
Management of several paper companies, Ballarpur and SFI.
on the Company’s website (www.bilt.com).
including more than 33 years with BILT.
Mr. Vederah was named as Asian CEO for the The Company also sends the results and
Mr. Vederah is the Non Executive Vice
Year 2011 by RISI, the definitive source for announcements to the Luxembourg Stock
Chairman of BILT and is also Director on the
information on the global forest products Exchange for the benefit of the GDS holders.
boards of various subsidiaries of Avantha and
industry and was consecutively ranked in The weblink for matters detailed in this
BILT. Further, Mr. Vederah is the Chairman of
Global Pulp and Paper Industry Power 50 report is http://bilt.com/investor-relations/.
Thapar University, Patiala (India).
list of RISI from 2009 to 2012. Mr. Vederah
is a Bachelor of Technology (Chemical) from GENERAL MEETINGS
Mr. Vederah is an Independent Director of
Talbros Automotive Components Limited the Indian Institute of Technology, New Table 6 gives the details of General Meetings,
(India), a company listed at BSE Limited and Delhi (India) and a Master of Science from
held in the last three years.
the National Stock Exchange of India Limited. the University of Aston, Birmingham (United
Kingdom). The following Special Resolutions were taken
Mr. Vederah began his career at M/s. Larsen up in the previous AGMs and approved by
COMMUNICATION TO SHAREHOLDERS
& Toubro Ltd in 1971, where his last position Shareholders with requisite majority.
with the company was Senior Manager. In Full and complete disclosure of information
1981, Mr. Vederah joined BILT, and served regarding the Company’s financial situation 2014: Offer, issue and allot, in one or more
in various positions until his departure in and performance is an important part of tranches, upto 2.50 crore cumulative non-
1993 as a Vice President, Operations. He the Company’s Corporate Governance convertible compulsorily redeemable
joined Sinar Mas Pulp & Paper (India) Ltd. as ethics. The Company has demonstrated this preference shares of the face value of
an Executive Director, heading the strategy commitment by sending its Shareholders a ` 100.00 each for cash at par or at a premium
function until 1996. In 1996, Mr. Vederah full version of its Annual Report, despite a aggregating upto a nominal value of ` 250.00
joined Shree Rayal-Seema Paper Mills Ltd. regulatory exemption. crores on a private placement basis.
TABLE 6 DETAILS OF GENERAL MEETINGS HELD DURING THE LAST THREE YEARS
DATE OF DECLARATION OF DIVIDEND DIVIDEND FOR THE FINANCIAL YEAR TENTATIVE SCHEDULE FOR TRANSFER TO
IEPF
1 December, 2010 2009–10 December 2017
16 December, 2011 2010–11 January 2019
18 December, 2012 2011–12 January 2020
12 December, 2013 2012–13 January 2021
19 December, 2014 2013-14 January 2022
30 September, 2015 2014-15 October 2022
Offer, issue and allot secured and/or GOVERNANCE OF SUBSIDIARIES quarter and audited annual results which are
unsecured redeemable Non-convertible considered and approved within 60 days.
Debentures (NCDs), in one or more series/ The subsidiaries of the Company are
managed by experienced Board of Directors. BOOk CLOSURE
tranches upto an aggregate amount of
` 250.00 crores, on a private placement basis. The minutes of the subsidiaries are reviewed
The dates of book closure are from 20
by the Board of Directors of the Company on
September, 2017 to 26 September, 2017,
Mortgage and /or charge, in addition to a regular basis.
both days inclusive.
the mortgages /charges created / to be
created by the Company, amounting in CEO/CFO CERTIFICATION UNCLAIMED DIVIDENDS
aggregate to a sum not exceeding the paid-
The Chief Executive Officer and Chief Dividends pertaining to the financial years
up Share Capital of the Company and its free
Financial Officer have certified to the Board 2009–10 onwards, as detailed in Table 7,
reserves by ` 1,600 crores on all or any of
with respect to accuracy of the financial which remain unclaimed and unpaid for a
the movable and/or immovable properties
statements, adequacy of internal controls period of seven years, will be transferred to
of the Company. The said limit remained
and other matters, as required by Regulation the Investor Education and Protection Fund
unchanged, as approved by the Members at
17(8) of Listing Regulations for the financial (IEPF), as required statutorily. To enable the
the Extraordinary General Meeting held on 7 members to claim their dividend before its
year ended 31 March, 2017.
November, 2001 by an ordinary resolution. transfer to the above Fund, the tentative
AUDITORS’ CERTIFICATE ON CORPORATE schedule for transfer is given in Table 7. The
2015: Nil
GOVERNANCE details are also available on the website of
2016: Nil the Company i.e. www.bilt.com under the
The Company has obtained a certificate Investor relations section.
POSTAL BALLOT from the Statutory Auditors of the Company
regarding compliance of conditions of UNCLAIMED BUY BACk CONSIDERATION
No resolution through postal ballot was Corporate Governance for the FY2016-
The shareholders, who have not received
passed during the year under review. 17, as prescribed by Schedule V of Listing
their buy back consideration, are requested
Regulations, which is attached herewith. to notify the Company of non-receipt and
CAPITAL MARkET COMPLIANCE
claim the same.
GENERAL SHAREHOLDERS’
The Company has complied with all
INFORMATION LISTING DETAILS
requirements of the Listing Regulations as
well as other applicable regulations and ANNUAL GENERAL MEETING At present, the Equity Shares of the Company
guidelines prescribed by SEBI. There were are listed on BSE Limited (BSE) and National
no penalties or strictures imposed on the Date 26 September, 2017 Stock Exchange of India Limited (NSE) in
Company by any statutory authorities for India. The annual listing fee for the financial
Time 11.00 a.m.
non compliance on any matter related to year 2017-18 has been paid to both the Stock
capital markets, during the last three years. Venue P.O. Ballarpur Paper Mills – 442901, Exchanges. The Company’s stock codes at
Distt. Chandrapur, Maharashtra various exchanges are given in Table 8.
UNCLAIMED SHARES
FINANCIAL CALENDAR 2017-18 Table 9 gives the details of monthly price and
The Company has completed the process of volumes traded of BILT’s shares at the BSE
intimation to shareholders, as per Regulation Financial year April–March. and the NSE, while Charts A and B compare
39(4) of Listing Regulations for unclaimed the price movements of BILT’s share with
shares for transfer in the Unclaimed Financial results normally within 45 days of respect to the BSE SENSEX and the NSE
Suspense Account. end of the respective quarter, except last NIFTY, respectively.
CORPORATE GOVERNANCE 19
ANNUAL REPORT 2016-17
TABLE 8 BILT’S STOCk CODES
ISIN INE294A01037
BSE 500102
NSE BALLARPUR
Luxembourg Stock Exchange US0585883020
Bloomberg BILT:IN
Reuters Code BILT.BO for BSE, BILT.NS for NSE
TABLE 9 MONTHLY PRICE AND VOLUMES OF BILT’S SHARES FOR 2016-17 AT BSE AND NSE, INCLUDING INDICES
Note: Both Bilt’s share price at BSE and the SENSEX have been indexed to 100 as on 1 April, 2016.
Note: Both Bilt’s share price at NSE and NIFTY have been indexed to 100 as on 1 April, 2016.
NON CONVERTIBLE DEBENTURES (NCDs) for holding in the depository systems of UNIT kAMALAPURAM
National Securities Depository Limited and
The Company had raised ` 150 Crore by Mangapet Mandal, Distt. Warangal –
Central Depository Services (India) Limited.
private placement of Secured redeemable 506172, Telangana
As on 31 March, 2017, 98.49 percent of the
non-convertible debentures (NCDs) of face total Equity Shares of the Company were ADDRESS FOR CORRESPONDENCE
value of ` 10 lac each in 2014. These NCDs held in dematerialised form, as compared to
are in dematerialised form and listed on BSE 98.48 percent last year. For share transfer, dematerialisation of
Limited. As on date of this report, the same shares, payment of dividend and any other
OUTSTANDING GLOBAL DEPOSITARY related queries of Analysts, FIIs, Institutions,
are outstanding.
SHARES (GDS) Mutual Funds, Banks and Fixed Deposits is:
REGISTRAR AND TRANSFER AGENT
As on 31 March, 2017, there were 41 Corporate Secretarial Department,
The Registrar and Transfer Agent for the outstanding GDS which represent 123 Ballarpur Industries Limited, First India
securities , both in physical and electronic underlying equity shares. Place, Tower-C, Block-A, Sushant Lok-1,
form of the Company is: Mehrauli-Gurgaon Road, Gurugram – 122002.
DISTRIBUTION OF SHAREHOLDING
M/s. RCMC Share Registry (P) Limited Tel +91 124 2804242 / 43
Tables 10 and 11 give the distribution of Tel +91 124 4099208
B-25/1, First Floor, Okhla Industrial Area,
shareholding of the equity shares of the Fax +91 124 2804261
Phase II, New Delhi-110020
Company by size and ownership as on 31 Email sectdiv@bilt.com
Phone 011 26387320 / 21
March, 2017.
Fax 011 26387322 For and on behalf of the Board of Directors
Email investor.services@rcmcdelhi.com REGISTERED OFFICE
GAUTAM THAPAR
SHARE TRANSFER SYSTEM Ballarpur Industries Limited Chairman
P.O. Ballarpur Paper Mills-442901 DIN 00012289
The Committee of Directors for Shares
Distt. Chandrapur, Maharashtra
approves the transfer of shares and other B. HARIHARAN
Tel +91 7172 240262 / 200
related issues regularly on a weekly basis. Group Director (Finance)
Extn. 234 / 339
The share transfer is processed within DIN 00012432
Fax +91 7172 240548
15 days, from the receipt of complete
Email sectdiv@bilt.com Date 23 May, 2017
documents.
Place New Delhi
PLANT LOCATIONS
DEMATERIALISATION OF SHARES
UNIT SHREE GOPAL
The Equity Shares of the Company are
compulsorily traded on the Stock Exchanges, P.O. Yamunanagar, Distt. Yamunanagar,
in dematerialised form and are available Haryana – 135001
CORPORATE GOVERNANCE 21
ANNUAL REPORT 2016-17
TABLE 10 SHAREHOLDING PATTERN BY SIZE AS ON 31 MARCH, 2017.
NUMBER OF EQUITY SHARES HELD NUMBER OF SHARE PERCENT OF SHARE NUMBER OF SHARES# PERCENT OF
HOLDERS# HOLDERS SHAREHOLDING
1–1000 63,866 85.70 16,370,126 2.50
1001–5000 7,970 10.70 19,196,664 2.92
5001–10,000 1,302 1.75 9,998,029 1.53
10,001 and above 1,377 1.85 609,959,020 93.05
Total 74,515 100.00 655,523,839 100.00
#55442 shareholders hold 645,604,918 equity shares in demat form.
DECLARATION OF COMPLIANCE WITH 2017, as per the relevant provisions ASHWIN MANkESHWAR
CODE OF CONDUCT of Securities and Exchange Board of Partner
India (Listing Obligations and Disclosure Membership No. 046219
Declaration for compliance of code of Requirements) Regulations, 2015 (‘Listing
conduct required pursuant to Schedule V of For and on behalf of
Regulations’) .
Listing Regulations is given below:
The compliance of conditions of Corporate k. k. MANkESHWAR & CO.
THE MEMBERS OF BALLARPUR INDUSTRIES Governance is the responsibility of the Chartered Accountants
LIMITED Company’s Management. Our examination FRN: 106009W
This is to certify that all Board members and was limited to a review of the procedures Date 23 May, 2017
senior management personnel have affirmed and implementations thereof, adopted by Place New Delhi
to the compliance with the ‘Code of Conduct the Company for ensuring compliance with
for Directors and Senior Management'. the conditions of Corporate Governance
as stipulated in the said Regulations. It is
For Ballarpur Industries Limited neither an audit nor an expression of opinion
on the financial statements of the Company.
NEEHAR AGGARWAL
Chief Executive Officer In our opinion and to the best of our
information and according to the explanations
Date 23 May, 2017 given to us and the representations made
Place New Delhi by the Directors and the Management, we
CERTIFICATE certify that the Company has complied with
the conditions of Corporate Governance as
THE MEMBERS OF BALLARPUR INDUSTRIES stipulated in the Listing Regulations.
LIMITED
We further state that such compliance
We have examined the compliance of is neither an assurance as to the future
conditions of Corporate Governance by viability of the Company nor the efficiency or
M/S Ballarpur Industries Limited, (the effectiveness with which the Management
“Company”), for the year ended 31 March, has conducted the affairs of the Company.
CORPORATE GOVERNANCE 23
ANNUAL REPORT 2016-17
BOARD’S
REPORT
The Companies (Indian Accounting Standards) Rules, 2015 were notified on 16 February,
present the Seventy 2015. In view of the said rules, the Company has prepared the Financial Statements (both
stand-alone and consolidated) for the year ended 31 March, 2017 as per Indian Accounting
Second Annual Standards, as amended.
The financial performance of your Company for the financial year ended 31 March, 2017 is
Report together with as under:
In view of losses during the year, your DECLARATION BY INDEPENDENT DIRECTORS CONSOLIDATION OF ACCOUNTS
Directors have not recommended any
dividend on the equity share capital of the All the Independent Directors have given a Consolidated Financial Statement of the
Company for the financial year ended 31 declaration confirming that they meet the Company and its aforesaid 9 subsidiaries are
March, 2017. criteria of independence, as provided in annexed to this Report.
Section 149(6) of the Act and Regulation
FIxED DEPOSITS 16(1)(b) of Securities Exchange Board of The performance and financial position
India (Listing Obligations and Disclosure of each of the subsidiaries are detailed in
No amount of principal or interest on
Requirements) Regulations 2015 {Listing ‘Statement containing salient features of the
erstwhile fixed deposits was outstanding as
Regulations}. financial statement of subsidiaries in Form
on 31 March, 2017. Further, the Company
AOC I, pursuant to Section 129 of the Act'.
has not invited any fresh deposits.
MEETINGS OF THE BOARD
BOARD OF DIRECTORS AND kEY MATERIAL CHANGES AND COMMITMENT
The details of meetings of the Board of AFFECTING FINANCIAL POSITION OF THE
MANAGERIAL PERSONNEL
Directors of the Company are contained in COMPANY
To strengthen the leadership at the Board the Corporate Governance Report.
level with independent professionals, in There are no material changes and
accordance with the provisions of the PROMOTER GROUP commitments affecting the financial
Companies Act, 2013 (“the Act”) read with position of the Company which has occurred
the Articles of Association of the Company, The Company is a part of the Avantha
between the end of the financial year of the
Mr. Sudhir Mathur was appointed as an Group, the business conglomerate led by the
Company i.e. 31 March, 2017, and the date
Additional Director (Independent) by the Chairman, Mr. Gautam Thapar. The Avantha
of the Board’s report i.e. 23 May, 2017.
Board of Directors on 7 February, 2017. His Group has global presence. As required
appointment as an Independent Director is by the Listing Regulations, the Company DIRECTORS’ RESPONSIBILITY STATEMENT
recommended for approval by the Members periodically discloses its Promoter, Promoter
of the Company at the forthcoming Annual Group and persons acting in concert in the In accordance with Section 134(5) of
General Meeting (AGM) of the Company for shareholding pattern and other filings with the Companies Act, 2013, your Board of
a term of 5 years. His profile is provided in the Stock Exchanges. Directors confirm that:
the Corporate Governance Report.
SUBSIDIARY COMPANIES • In the preparation of the annual
As per the provisions of the Act, accounts, the applicable accounting
Mr. R.R. Vederah retires by rotation at the The Company has three Indian subsidiaries standards have been followed and there
forthcoming AGM and being eligible, offers viz. BILT Graphic Paper Products Limited is no material departure;
himself for re-appointment. His profile (BGPPL), Avantha Agritech Limited {(AAL),
is provided in the Corporate Governance (formerly BILT Tree Tech Limited )} and • They had selected such accounting
Report. The Directors recommend his re- Premier Tissues (India) Limited (PTIL) and policies and applied them consistently
appointment as Non Executive Director of six foreign subsidiaries viz. four based in The and made judgments and estimates
the Company. Netherlands namely Ballarpur International that are reasonable and prudent so as
Holdings B.V. (BIH), Bilt Paper B.V. (BPBV), to give a true and fair view of the state
The Nomination and Remuneration
Ballarpur Paper Holdings B.V. (BPH), of affairs of the Company at the end of
Committee has formulated criteria and
Ballarpur Speciality Paper Holdings B.V. the financial year and of the loss of the
policy for the identification / appointment
(BSPH), Sabah Forest Industries Sdn. Bhd. Company for the financial year;
of Directors, Key Managerial Personnel &
Senior Management, their remuneration (SFI) based in Malaysia and BILT General
Trading (FZE), based in UAE. AAL and PTIL are • They had taken proper and sufficient care
and evaluation. The same is also briefed in
direct subsidiaries and BGPPL is a step down for maintenance of adequate accounting
the Corporate Governance Report.
subsidiary of the Company. records as provided in the Companies
The Board has carried out annual evaluation Act, 2013, for safeguarding the assets
as per criteria laid down by the Nomination Management Discussion and Analysis of the Company and for preventing and
and Remuneration Committee. Report, as annexed herewith comprises detecting frauds and other irregularities;
BOARD’S REPORT 25
ANNUAL REPORT 2016-17
• The annual accounts of the Company to subsidiaries and emphasis of matter or transactions with related parties which
have been prepared on a “going regarding invocation of Strategic Debt require disclosure in Form AOC–2.
concern” basis; Restructuring by the Lenders due to non
fulfillment of debt obligations given by Details of loans / guarantees / investments
• They had laid down internal financial Statutory Auditors in their report are self by the Company under Section 186 of the
controls to be followed by the Company explanatory and also suitably explained Companies Act, 2013 are provided in the
and that such controls are adequate and in Note Nos. 44 and 45 respectively of financial statements of the Company.
were operating effectively; and the Notes to the Financial Statements of
ADEQUACY OF INTERNAL FINANCIAL
the Company and does not require any
• They had devised proper systems to CONTROLS
additional comment(s)."
ensure compliance with the provisions
of all applicable laws and that such The Company has designed and
The Board had appointed M/s PDS & Co.,
systems were adequate and operating implemented a process driven framework
Company Secretaries, to conduct Secretarial
effectively. for internal financial controls within the
Audit of the Company for the financial year
meaning of explanation to Section 134(5)
2016–2017. The Secretarial Audit Report
AUDITORS & AUDITORS’ REPORTS (e) of the Companies Act, 2013. For the year
for the said financial year is annexed to this
ended 31 March, 2017, the Board is of the
The tenure of M/s. K. K. Mankeshwar & Co., report.
opinion that the Company has sound internal
Chartered Accountants, Statutory Auditors
The Board of Directors, on recommendation financial controls commensurate with the
of the Company, expires at the conclusion
of Audit Committee have appointed nature and size of its business operations;
of the forthcoming Annual General Meeting
M/s. Bahadur Murao & Co., Cost wherein controls are in place, operating
(AGM) of the Company. In view of the
Accountants, (Registration No. 000008), effectively and no material weaknesses
requirement of mandatory rotation, the
as Cost Auditors of the Company, to carry exist. The Company has a process in place to
Board of Directors on the recommendation
out the cost audit of paper manufactured continuously monitor the existing controls
of the Audit Committee propose to appoint
in relation to the financial year ending and identify gaps, if any, and implement new
M/s Sharp & Tannan, Chartered Accountants
31 March, 2018. The Company has received and / or improved controls, wherever the
(FRN 003792S), as Statutory Auditors for a
period of five years. M/s Sharp & Tannan, their written consent to act as Cost Auditors effect of such gaps would have a material
Chartered Accountants, if appointed at of the Company and that the appointment is effect on the Company’s operation.
forthcoming AGM, shall hold office till the in accordance with the applicable provisions
of the Act and rules framed thereunder. The RISk MANAGEMENT
conclusion of 77th AGM of the Company
and their re-appointment shall be subject remuneration of the Cost Auditors has been BILT has adopted the group risk management
to ratification by the Members at every approved by the Board of Directors on the policy. Accordingly, all operational processes
AGM to be held during the period of their recommendation of the Audit Committee
are duly covered to assess the risk level.
appointment. The Board places on record and the requisite resolution for ratification
Business risks are assessed by operational
its appreciation for contributions of M/s K.K. of remuneration of the Cost Auditors by the
management and steps are taken for
Mankeshwar & Co. as Statutory Auditors of members has been set out in the Notice of
minimization of the same.
the Company. the Seventy Second Annual General Meeting
of your Company. STATUTORY COMMITTEES
M/s Sharp & Tannan, Chartered Accountants,
Chennai (FRN 003792S) are into Assurance, CORPORATE GOVERNANCE Details of various Committees of the Board
Tax and Advisory services. They have pan viz. Audit, Nomination & Remuneration,
The Statutory Auditors, M/s. K. K.
India presence and have an experienced Stakeholders Relationship, Corporate
Mankeshwar & Co., have certified
team. They also have several other Social Responsibility and Risk Management
compliance of the Company with the
prominent Indian companies as their clients constituted in compliance with the
provisions of Corporate Governance, in
in a variety of sectors like Construction, provisions of the Companies Act, 2013
terms of Listing Regulations. Pursuant to the
Infrastructure, Manufacturing, Power and Listing Regulations, viz. constitution,
requirement of the Listing Regulations, the
transmission and distribution, Oil & Gas, purpose, attendance etc. has been provided
report on Corporate Governance together
Automotive components, Insurance etc. in the Corporate Governance Report, as
with the said Compliance certificate is
annexed with this Report.
The Company has received requisite attached and forms part of this Report.
certificate to the effect that their The Board has accepted recommendations
RELATED PARTY TRANSACTIONS AND
appointment, if made at the forthcoming of the Committees, wherever made.
LOANS, GUARANTEES OR INVESTMENTS BY
Annual General Meeting, would be in
THE COMPANY STATUTORY POLICIES
accordance with Section 141 of the Act
and that they hold a valid certificate issued During the period under review, all In compliance of the various provisions
by Peer review board of The Institute of transactions with related parties, referred of the Companies Act, 2013 and Listing
Chartered Accountants of India. to in sub-section (1) of Section 188 and Regulations, the Company has made the
Board’s explanation to Auditor’s qualification Regulation 23 of Listing Regulations were in following policies which are available on the
& emphasis of matter the ordinary course of business and at arm’s website of the Company:
length, duly reviewed/approved by the Audit
“The qualified opinion on the liability for Committee of the Company. Further, there • Policy on materiality of and dealing with
the put option on the Company pertaining were no material contracts, arrangements related party transactions
BOARD’S REPORT 27
ANNUAL REPORT 2016-17
ANNEXURE TO BOARD'S REPORT
ANNExURE 1
Pursuant to clause (m) of sub-section 3 of • Provided auto-off timer circuit 1. Reduction in steam
section 134 of the Companies Act, 2013 and switch for 15 minutes in 18 nos. of consumption to the tune of 2.5
Rule 8(3) of the Companies (Accounts) Rules, soda recovery evaporators gauge TPH by :-
2014 glass lighting. It has resulted in
reduction in power consumption to • controlling venting & distribution
Unit: Shree Gopal the tune of 1.5 kWh/hr. losses,
1. CONSERVATION OF ENERGY: • improving insulation of steam
2. Monetary benefits due to
A) ENERGY CONSERVATION MEASURES energy conservation drive in the lines,
TAKEN: mills:
• replacing faulty steam traps and
Unit Shree Gopal continued its efforts • Unit Shree Gopal Sold 14,906
• arresting steam leakages.
to improve energy usage efficiency and REC (Renewable Energy Credit) in
increase contributions from renewable FY2016-17 out of 34,830 REC earned Corresponding reduction in coal
sources of energy. Innovative ways In FY2015-16, resulted a monetary consumption to the tune of 4,300
and new technologies were explored gain to the tune of Rs 220 Lac. TPA
to reduce energy consumption. Some
of the measures adopted across the 3. Enhanced safety & Plant housekeeping 2. Improvement in Overall
company for energy conservation were:- by following actions: efficiency of Coal fired boilers
No. 1, 2 & 3 to the tune of 2% by
Unit: Shree Gopal • Eliminated 8 Nos of mill wide
installing PLC based automation
identified Power Distribution Boards
1. Reduced power consumption by 60 system for boiler operations and
(i.e. DB No.3 of vacuum pumps
kWh/hr as per below details: hence an estimated reduction in
PM-4, DB of pump house, Stock
coal consumption about 4,833
• Replaced 30 Pcs. of 400 Watt HPSV/ preparation PM-4, Errection shop
TPA.
HPMV fixtures with 10 LED of 80W DB, Soda recovery DB 4, DB of MOL
each lighting fixtures resulted plant, ClO2 plant pump house DB & b) Paper Machines:
reduction in power consumption to Hospital DB) from flash prone area,
the tune of 11 kWh/Hr. after shifting all equipments on To reduce steam consumption
newly installed MCCs. in paper machines by controlling
• Replaced 200 nos. of double tube moisture in paper at pope reel. It
lighting fixtures in transformer/ • Provided motorized ‘cross travel will be carried out by installing QCS
PCC rooms mill wide with 9W operation’ instead of manual at 8T on PM-2 & PM-7 both enabling
LEDs resulted reduction in power hoist at PM-7 crane. improvement in paper quality vis a
consumption to the tune of 10 kWh/
vis reduction in steam consumption
Hr. • Repaired existing mill wide earthling
on both machines to the tune of
pits & also made new pits wherever
• Replaced energy inefficient de- 0.2 MT/ MT of paper equivalent to
required.
aerator pump & motor in Old reduction in coal consumption of
Power Plant with energy efficient • Mill wide damaged electric cable 1000 MT p.a.
ones resulted in reduction in power trays repaired / replaced.
consumption to the tune of 5 kWh/ (B) Electrical Energy Saving Measures:
Hr. (B) ENERGY CONSERVATION MEASURES (302 kWh/hr)
PLANNED:
• Replaced energy in-efficient 110kW/ 1) Replacement of old inefficient
6 pole motor with new energy 1. PAT-2 target given to Unit Shree vacuum pumps with efficient
efficient motor of the fire pump Gopal: vacuum pumps of Paper machine
resulted in reduction in power PM-1 & 2. Expected saving in
consumption to the tune of 2.5 kW/ To reduce energy consumption by power consumption to the tune
Hr. 5.9% or 4356 TOE(Tonnes of Oil of 100 kWh/hr.
Equivalent) in next two years i.e. up
• Replaced HPSV (High Pressure to FY2018-19. 2) Replacement of old inefficient air
Sodium Vapor), HPMV (High compressors with efficient screw
Pressure Mercury Vapor), MH (Metal 2. The following jobs have been type air compressors. Expected
Halide) lamps of 400W, 250W, 125W, planned to achieve above target. saving in power consumption to
70W with CFL (Compact fluorescent
the tune of 34 kWh/hr.
lamp) of 85W, 45W, 35W & 20 watt (A) Thermal Energy Saving Measures:
respectively resulted in reduction in (Coal saving 10,133 MT p.a.) 3) Replacement of non star rated
power consumption to the tune of air conditioners with BEE star
30 kWh/ Hr. a) Power Plant & Utilities
a) Capital : Nil
GAUTAM THAPAR
Chairman
DIN 00012289
B. HARIHARAN
Group Director (Finance)
DIN 00012432
THE RATIO OF THE REMUNERATION OF EACH DIRECTOR TO THE MEDIAN EMPLOYEE’S REMUNERATION AND OTHER DETAILS
IN TERMS OF SUB-SECTION 12 OF SECTION 197 OF THE COMPANIES ACT, 2013 READ WITH RULE 5(1) OF THE COMPANIES
(APPOINTMENT AND REMUNERATION OF MANAGERIAL PERSONNEL) RULES, 2014:
Note: The information provided below is on standalone basis for Indian Listed entity.
1. Ratio of the remuneration of each director to the median remuneration of all the employees of the Company for the financial year;
SL. NO. NAME OF DIRECTOR RATIO OF REMUNERATION TO MEDIAN REMUNERATION OF ALL EMPLOYEES
1 Mr. Gautam Thapar 0.29
2 Mr. R. R. Vederah 0.24
3 Mr. B. Hariharan -
4 Mr. Sanjay Labroo 0.19
5 Mr. A.S. Dulat 0.63
6 Mr. Ashish Guha 0.53
7 Mr. B. Venugopal 0.05
8 Mr. A. P. Singh 0.53
9 Ms. Nandini Adya 0.19
10 Mr. Sudhir Mathur* 0.05
* Appointed as an Additional Director (Independent) w.e.f. 7th February, 2017.
For the aforesaid purposes, median remuneration has been computed by ascertaining the annualized median salary for all employees of
the Company, employed at any time during the financial year 2016-2017, in all categories, whether workmen or white collar employees.
Remuneration includes variable pay paid during the year.
2. The percentage increase in remuneration of each Director, Chief Financial Officer, Chief Executive Officer, Company Secretary or Manager,
if any, in the financial year:
a) Non-Executive Directors: No increase.
Remuneration for the financial year 2016-2017 comprises attendance based sitting fee only.
b) Key Managerial Personnel
Notes :
a) Employment is contractual. Other terms and conditions as per Company’s rules.
b) Remuneration includes salary, allowances, perquisites, medical expenses, leave travel concession, Company’s contribution to
provident and superannuation funds, gratuity paid (if any), rent paid in providing residential accommodation and performance
incentive.
c) None of the employees is related to any Director of the Company.
(ii) if employed for a part of the financial year, was in receipt of remuneration for any part of that year, at a rate which, in the aggregate,
was not less than [eight lakh and fifty thousand rupees per month]; Nil
iii) if employed throughout the financial year or part thereof, was in receipt of remuneration in that year which, in the aggregate, or as
the case may be, at a rate which, in the aggregate, is in excess of that drawn by the Managing Director or Whole-Time Director or
manager and holds by himself or along with his spouse and dependent children, not less than two percent of the equity shares of the
Company: Nil
GAUTAM THAPAR
Chairman
DIN 00012289
B. HARIHARAN
Group Director (Finance)
DIN 00012432
i CIN L21010MH1945PLC010337
ii Registration Date 26 April, 1945
iii Name of the Company Ballarpur Industries Limited
iv Category / Sub-Category of the Company Public Company Limited by shares
v Address of the Registered office and contact details P.O. Ballarpur Paper Mills, District Chandrapur,
Maharashtra-442901
Phone +91 07172 240200
Fax +91 07172 240548
vi Whether listed company Yes
vii Name, address and contact details of registrar and M/s. RCMC Share Registry Pvt. Ltd.
transfer agent, if any B-25/1, First Floor, Okhla Industrial Area, Phase 2, New Delhi-110 020
Phone 011 26387320 / 21
Fax 011 26387322
Email investor.services@rcmcdelhi.com
All the business activities contributing 10% or more of the total turnover of the company shall be stated:
NAME AND DESCRIPTION OF MAIN NIC CODE OF THE PRODUCT / SERVICE % TO TOTAL TURNOVER OF THE
PRODUCTS / SERVICES COMPANY
Paper 1701 85.35
Paper Products & Office Supplies 1701 14.65
SL. NAME AND ADDRESS OF THE CIN / GLN HOLDING / % OF SHARES APPLICABLE
No. COMPANY SUBSIDIARY / HELD SECTION
ASSOCIATE
1 Premier Tissues (India) Limited U85110KA1998PLC023512 Subsidiary (direct) 100 2(87)(ii)
2 BILT Graphic Paper Products U21000MH2007PLC172382 Subsidiary (Step 100 2(87)(ii)
Limited down)1
3 Avantha Agritech Limited U36999DL1989PLC034942 Subsidiary (direct) 91.67 2(87)(ii)
(Formerly known as Bilt Tree Tech
Limited)
4 Ballarpur International Holdings N.A. Subsidiary (direct) 100 2(87)(ii)
B.V., The Netherlands (BIH)
5 Bilt Paper B.V., The Netherlands N.A. Subsidiary (Step 62.21 2(87)(ii)
(BPBV) down)2
6 Ballarpur Paper Holdings B.V., The N.A. Subsidiary (Step 100 2(87)(ii)
Netherlands (BPH) down)3
7 Ballarpur Speciality Paper Holdings N.A. Subsidiary (direct) 100 2(87)(ii)
B.V., The Netherlands (BSPH)
8 Sabah Forest Industries Sdn. Bhd., N.A. Subsidiary (Step 98.08 2(87)(ii)
Malaysia (SFI) down)4
9 Bilt General Trading(FZE), UAE N.A. Subsidiary (Step 100 2(87)(ii)
down)5
1
Held through BPH |2Held through BIH |3Held through BPBV |4Held through BPH|5Held through BSPH
CATEGORY OF NO. OF SHARES HELD AT THE BEGINNING OF NO. OF SHARES HELD AT THE END OF %
SHAREHOLDERS THE YEAR (1 April, 2016) THE YEAR (31 MARCH, 2017) CHANGE
DEMAT PHYSICAL TOTAL % OF DEMAT PHYSICAL TOTAL % OF DURING
TOTAL TOTAL THE YEAR
SHARES SHARES
A PROMOTERS
1) Indian
a) Individual / HUF 1,211,198 - 1,211,198 0.19 1,202,108 - 1,202,108 0.19 -
b) Central Govt - - - - - - - - -
c) State Govt(s) - - - - - - - - -
d) Bodies Corp. 322,799,469 - 322,799,469 49.24 322,799,469 - 322,799,469 49.24 -
e) Banks/FI - - - - - - - - -
f) Any Other - - - - - - - - -
Sub-total (A) (1) 324,010,667 - 324,010,667 49.43 324,001,577 - 324,001,577 49.43 -
2) Foreign
a) NRIs-Individuals - - - - 9090 - 9090 0.00 -
b) Other-Individuals - - - - - - - - -
c) Bodies Corp. - - - - - - - - -
d) Banks / FI - - - - - - - - -
e) Any Other - - - - - - - - -
Sub-total (A) (2) - - - - 9090 - 9090 0.00 -
Total shareholding 324,010,667 - 324,010,667 49.43 324,010,667 - 324,010,667 49.43 -
of Promoter (A) =
(A)(1)+(A)(2)
B PUBLIC
SHARHOLDING
1) Institutions
a) Mutual Funds 4,691,169 7,566 4,698,735 0.72 5,996,098 7,566 6,003,664 0.92 0.20
b) Banks / FI 647,551 24,009 671,560 0.10 559,982 24,693 5,846,75 0.09 (0.01)
c) Central Govt. 4,866 684 5,550 0.00 1,521 - 1,521 0.00 0.00
d) State Govt(s). - - - - - - - - -
e) Venture Capital - - - - - - - - -
Funds
f) Insurance 62,885,911 - 62,885,911 9.59 57,971,178 - 57,971,178 8.84 (0.75)
Companies
g) FIIs 99,360,560 48,342 99,408,902 15.16 311,175 48,342 359,517 0.05 (15.11)
h) Foreign Venture - - - - - - - - -
Capital Funds
i) FPI - - - - 80,672,727 - 80,672,727 12.31 12.31
j) Qualified Foreign - - - - - - - - -
Investor
k) Foreign Financial 3,676,010 - 3,676,010 0.56 - - - - (0.56)
Institution (JFC)
Sub-total (B) (1) 171,266,067 80,601 171,346,668 26.13 145,512,681 80,601 145,593,282 22.21 (3.92)
2) Non-Institutions
a) Bodies Corp. 35,906,181 49,287 35,955,468 5.48 54,071,752 46,287 54,118,039 8.26 2.77
i) Indian
ii) Overseas
SL. SHAREHOLDER’S NAME SHAREHOLDING AT THE BEGINNING OF THE SHAREHOLDING AT THE END OF THE YEAR
N0. YEAR
NO. OF SHARES % OF % OF SHARES NO. OF % OF % OF SHARES % CHANGE
TOTAL PLEDGED/ SHARES TOTAL PLEDGED / IN SHARE
SHARES ENCUMBERED SHARES ENCUMBERED HOLDING
OF THE TO TOTAL OF THE TO TOTAL DURING THE
COMPANY SHARES COMPANY SHARES YEAR
1 Avantha Holdings Ltd 322,689,019 49.23 322,674,019 322,689,019 49.23 322,689,019 0.00
2 Avantha Realty Ltd 110,000 0.02 - 110,000 0.02 - 0.00
3 Late Mr. B. M. Thapar - 0.00 - - 0.00 - 0.00
4 Blue Horizon 450 0.00 - 450 0.00 - 0.00
Investments Ltd
5 Mr. Gautam Thapar 1,179,127 0.18 - 1,188,218 0.18 - 0.00
6 Ms. Nandini Kapur 4,800 0.00 - 13,890 0.00 - 0.00
7 Late Mrs. Sulochana 27,271 0.00 - 0.00 0.00 - 0.00
Thapar
8 Ms. Shalini Waney 0 0.00 - 9,090 0.00 - 0.00
Total 324,010,667 49.43 322,674,019 324,010,667 49.43 322,689,019 0.00
(IV) SHAREHOLDING PATTERN OF TOP TEN SHAREHOLDERS (OTHER THAN DIRECTORS, PROMOTERS AND HOLDERS OF GDRs AND ADRs)
SL. FOR EACH OF THE DIRECTORS AND kMP SHAREHOLDING AT THE CUMULATIVE SHAREHOLDING
No. BEGINNING OF THE YEAR DURING THE YEAR
NO. OF % OF TOTAL NO. OF % OF TOTAL
SHARES SHARES OF THE SHARES SHARES OF THE
COMPANY COMPANY
At the beginning of the year
1 Mr. Gautam Thapar 1,179,127 0.18 1,179,127 0.18
Date wise Increase / Decrease in Share holding during - - - -
the year specifying the reasons for increase / decrease
(e.g. allotment / transfer / bonus / sweat equity etc):
9091 acquired by Mr. Gautam Thapar on 11/11/2016 upon - - 1,188,218 0.18
transmission of shares of Late Mrs. Sulochana Thapar
2 Mr. Sanjay Labroo 495,802 0.08 495,802 0.08
3 Mr. B. Hariharan 8,040 0.00 8,040 0.00
At the end of the year
1 Mr. Gautam Thapar 1,188,218 0.18 11,88,218 0.18
2 Mr. Sanjay Labroo 495,802 0.08 495,802 0.08
3 Mr. B. Hariharan 8,040 0.00 8,040 0.00
V INDEBTEDNESS
Indebtedness of the Company including interest outstanding / accrued but not due for payment (` in Lacs)
A REMUNERATION OF MANAGING DIRECTOR (MD), WHOLE-TIME DIRECTORS (WTD) AND/OR MANAGER (in `) - Nil
C REMUNERATION TO KEY MANAGERIAL PERSONNEL (KMP), OTHER THAN MD / MANAGER / WTD (in `)
GAUTAM THAPAR
Chairman
DIN 00012289
B. HARIHARAN
Group Director (Finance)
DIN 00012432
1 A brief outline of the Company’s CSR enable the disadvantaged communities 3 Average net profit/(Loss) of the
policy and a reference to the web- to improve the quality of their life and Company for last three financial years:
link to the CSR policy and projects or preserve the ecosystem that supports (` 4.23 Cr.)
programs. the communities and the Company.
4 Prescribed CSR Expenditure (two per
CSR at BILT has been operational long For BILT, being a socially responsible cent of the amount as in item 3 above):
before the new Companies Act, 2013 company means: (` 8.46 Lacs)
came into force. CSR initiatives at BILT • Using environment friendly, energy 5 Details of CSR spent during the financial
are carried out at the manufacturing efficient and safe processes in year:
units through active partnerships with production.
3 Non Governmental Organisations a) Total amount to be spent for the
(NGOs). The Company is conducting • Making a sustained effort in financial year(April’16-March’17):
preserving the environment.
CSR activities based on the philosophy Nil
of sustainable development & inclusive • Building active and long term
Actual Amount Spent (April’16-
growth. partnerships with the communities
March’17): ` 13.17 Lacs
in which the Company operates to
At BILT CSR is taken up with a commitment b) Amount unspent, if any; Nil
improve significantly the condition
for the communities & environment. of the most disadvantaged amongst
BILT uses CSR to integrate economic, c) Manner in which the amount spent
them.
environmental and social objectives with during the financial year: is detailed
the Company’s operations and growth. • Contributing to inclusive growth and in Table.
The details of the CSR initiatives are equitable development in society.
Implementing Partner NGOs —
available at the Company’s website at • Promoting organisational integrity
www.biltcsr.com. • Society for All Round Development
and ethical business practices and
(SARD)
The Company has been implementing transparency in disclosure and
reporting procedures. • Vidya Pratisthan’s Institute of
CSR with a dedicated team and its CSR
Information Technology (VIIT)
initiatives are part of the Company’s well • Re-defining successful performance
defined CSR policy. for company managers to include • Bharatiya Agro Industries Foundation
the environmental and social impact (BAIF)
ExCERPT OF CSR POLICY
of how the company delivers growth 6 In case the Company has failed to spend
BILT is committed to its stakeholders and profitability. the two percent of the average net
to conduct its business in a responsible 2 Composition of the CSR Committee. profit of the last three financial years
manner that creates a sustained or any part thereof, the Company shall
positive impact on society. At BILT, CSR Mr. Gautam Thapar-Chairman
provide the reasons for not spending
is envisaged as a long term engagement Mr. R. R. Vederah-Member the amount in its Board report. Not
with key stakeholders. Focussed applicable.
programmes are implemented to Mr. Sudhir Mathur-Member
7 This is to certify that the implementation of CSR initiatives and its monitoring has been carried out in compliance with the CSR objectives
and Policy of the Company.
GAUTAM THAPAR NEEHAR AGGARWAL
Chairman CSR Committee Chief Executive Officer
2. We have followed the audit practices 6. The Secretarial Audit report is neither
and processes as were appropriate to an assurance as to the future viability
obtain reasonable assurance about of the company nor of the efficacy
the correctness of the contents of the or effectiveness with which the
secretarial records. The verification management has conducted the affairs
was done on the random test basis to of the Company.
ensure that correct facts are reflected in
secretarial records. We believe that the
processes and practices, we followed For PDS & CO.
provide a reasonable basis for our Company Secretaries
opinion.
(Prashant Kumar Balodia)
3. We have not verified the correctness Partner
and appropriateness of financial records Membership No. 6047
and Books of Accounts of the Company. Certificate of Practice No. 6153
The Annexure referred to in paragraph 1 between the physical stocks and the the prescribed accounts and records
under “Report on Other Legal and Regulatory book records were not material. have been made and maintained. We
Requirement” section of our Independent have, however, not made a detailed
3. The Company has not granted any loan,
Auditors’ Report to the members of the examination of the records with a
secured or unsecured, to Companies,
Company on the Ind AS Financial Statements view to determining whether they are
firms or other parties covered in the
for the year ended 31st March 2017, we accurate or complete.
registers maintained in pursuance of
report that:
Section 189 of the Act. Accordingly, 7. a) According to the information and
1. a) The Company has maintained paragraph 3(iii) of the Order is not explanation given to us, undisputed
proper records showing full applicable to the Company. statutory dues including Provident
particulars, including quantitative Fund, Employees State Insurance,
4. According to the information and
details and situation of fixed assets; Income-Tax, Sales tax, Service Tax,
explanation given to us, the Company
Duty of Customs, Duty of Excise,
b) The fixed assets were physically has not granted any loans or made
Value added Tax, Cess and other
verified during the year by the investment or provided any security/
material statutory dues have been
Management. guarantee as covered by provisions
regularly deposited during the
of Sections 185 and 186 of the Act.
No material discrepancies year by the Company with the
Accordingly, Paragraph 3(iv) of the
were noticed on such physical appropriate authorities though
Order is not applicable to the Company.
verification. there has been a slight delay in few
5. According to the information and cases.
c) On examination of the records of
explanation given to us and the
the Company, the title deeds of According to the information
examined by us, the Company has not
immovable properties are held in and explanations given to us, no
accepted any deposits from the public
the name of the Company except undisputed amounts payable
during the year. Accordingly, Paragraph
in Unit Kamlapuram, land value in respect of Provident Fund,
3(v) of the Order is not applicable to the
at Rs. 44 lacs acquired under Employees State Insurance,
Company.
agreements and under possession Income-Tax, Sales tax, Service Tax,
of the Unit are yet to be registered 6. We have broadly reviewed the books of Duty of Customs, Duty of Excise,
in the name of the Unit. account and records maintained by the Value added Tax, Cess and other
Company relating to the products of the statutory dues as applicable to it
2. The inventory, except goods-in-
Company pursuant to the Rules made were outstanding, as at 31st March
transit, has been physically verified
by the Central Government for the 2017 for a period of more than six
by the management during the year.
maintenance of cost records under Sub- months from the date they became
In our opinion, the frequency of
section (1) of Section 148 of the Act and payable except as given below:-
such verification is reasonable. The
we are of the opinion that prima facie
discrepancies noticed on verification
b) According to the information and with the appropriate authorities on our examination of the records of
explanations given to us, there are on account of disputes other than the Company, the company has not
no dues of Income-Tax, Sales tax, those mentioned in “Annexure A defaulted in repayments of loans or
Value added tax, Service Tax, Duty (1)” to this report. borrowing to a financial institutions,
of Customs, Duty of Excise, Cess 8. According to the information and bank, government or dues to debenture
which have not been deposited explanations give to us and based holders except as given below:
9. The Company has not raised money 3 of the order is not applicable to the with directors or persons connected
by way of initial public offer or Company. with him. Accordingly, clause (xv) of
further public offer (including debt the paragraph 3 of the Order is not
13. According to the information and
instruments). However the moneys applicable.
explanation given to us, all transactions
raised by way of term loan which were
with related parties are in compliance 16. The Company is not required to be
applied for the purpose for which those
with section 177 and 188 of the Act, registered under section 45-IA of the
were obtained.
wherever applicable and the details Reserve Bank of India Act, 1934.
10. According to the information and have been disclosed in the Ind AS
explanations given to us, no material Standalone Financial Statements as
fraud by the Company or on the required by the applicable accounting
Company by its officers or employees standards.
has been noticed or reported during the
14. According to the information and
course of our audit. ASHWIN MANkESHWAR
explanation given to us, the Company
Partner
11. According to the information and has not made any preferential allotment
Membership No. 046219
explanations given to us, no managerial or private placement of shares or fully
For and on behalf of
remuneration has been paid or or partly convertible debenture during
K. K. Mankeshwar & Co.,
provided under the provisions of the year.
Chartered Accountants
Section 197 read with Schedule V to the
15. According to the information and FRN: 106009W
Act. Accordingly, paragraph 3(xi) of the
explanations given to us and based
Order is not applicable to the Company.
on our examination of the records of
12. As the Company is not a Nidhi Company, the Company, the Company has not New Delhi, dated the
accordingly clause (xii) of paragraph entered into non-cash transactions 23rd May, 2017
Name of Statute Nature of dues Amount Period to which the Forum where the dispute is pending
(` in Lakhs) amount relates
Central Excise Tariff Act 1985 Excise 21.6 1996-97; 2010-11; Asst. Commissioner, Yamuna Nagar
Central Excise Tariff Act 1985 Excise 11.32 1996-97 Joint Commissioner, Panchkula
Central Excise Tariff Act 1985 Excise 38.48 2009-10; 2015-16 Commissioner Panchkula
Central Excise Tariff Act 1985 Excise 694.29 2003-04 to 2010-11 CESTAT, Delhi & Chandigarh
Central Excise Tariff Act 1985 Excise 232.67 2004-05 to 2009-10 Commissioner (Appeals), Delhi
Customs Act,1962 Custom 36.47 2012-13 The Commissioner Custom (Apeals),
Kandla
Customs Act,1962 Custom 32.83 2012-13 Commissioner Custom (Apeals), Jam
Nagar
Punjab General Sales Tax Act, Sales Tax 582.68 1989 to 1995 Punjab VAT Tribunal, Chandigarh
1948
UP Trade Tax, 1948 Sales Tax 0.98 1997-98 Trade Tax Tribunal, Saharanpur
UP Trade Tax, 1948 Sales Tax 0.66 2002-03 Trade Tax Tribunal, Saharanpur
UP Tax on Entry of Goods Act, Entry Tax 1.92 2001-02 Trade Tax Tribunal, Saharanpur
2000
UP VAT Act, 2008 Sales Tax 1.22 2008-09 Joint Commisioner Appeals-Saharanpur
UP VAT Act, 2008 Sales Tax 1.47 2008-09 Trade Tax Tribunal, Saharanpur
UP Trade Tax, 1948 Sales Tax 11.74 1994-95 Nainital High Court
Central Sales Tax Act,1956 Sales Tax 0.53 2008-09 Dy. Commissioner (Appeals), Patiala
Central Sales Tax Act,1956 Sales Tax 0.88 2011-12 Jt. Commissioner (Appeals), Ambala
Haryana VAT Act, 2003 Sales Tax 2.76 2015-16 Jt. Excise & Taxation Commissioner
Appeals-Ambala
UP VAT Act, 2008 Sales Tax 5.99 2014-15 Addl. Commissioner (Appeal)-Saharanpur
UP VAT Act, 2008 Sales Tax 1.12 2010-11 Addl. Commissioner (Appeal)-Saharanpur
UP VAT Act, 2008 Sales Tax 35.1 2016-17 Dy. Commissioner Assessment-Saharanpur
UP VAT Act, 2008 Sales Tax 0.74 2009-10 Addl. Commissioner Gr-2,Saharapur
Kerala Vat Act,2005 Sales Tax 6.8 2011-12 Commissioner (Appeals), Kerala
Central Sales Tax, 1956 Sales Tax 14.7 2001-2002 Applellate Deputy Commissioner (CT),
Secunderabad
Central Excise Act, 1944 Excise duty and 723.68 2012-2013 Customs, Excise and Service tax Applellate
Penalty Tribunal Hyderabad
Income Tax Act, 1961 Income Tax 3,981.36 1981-82 to 1990-91, Pending before high court
1997-98, 1999-2000,
2000-01, 2002-03,
2003-04, 2004-05,
2006-07 to 2010-11
Income Tax Act, 1961 Income Tax 1,785.38 1994-95, 2005-06, Pending before tribunal
2009-10
Income Tax Act, 1961 Income Tax 3,954.81 2008-09 Pending before Supreme Court
Total 12,182.18
Report on the Internal Financial Controls of India. Those Standards and the Guidance and that receipts and expenditures of the
under Clause (i) of Sub-section 3 of Section Note require that we comply with ethical company are being made only in accordance
143 of the Companies Act, 2013 (“the Act”) requirements and plan and perform the with authorisations of management and
audit to obtain reasonable assurance about directors of the company; and (3) provide
We have audited the internal financial reasonable assurance regarding prevention
whether adequate internal financial controls
controls over financial reporting of Ballarpur or timely detection of unauthorised
over financial reporting was established and
Industries Limited (“the Company”) as of maintained and if such controls operated acquisition, use, or disposition of the
31st March 2017 in conjunction with our effectively in all material respects. Company's assets that could have a material
audit of the standalone Ind AS financial effect on the Ind AS financial statements.
statements of the Company for the year Our audit involves performing procedures to
ended on that date. obtain audit evidence about the adequacy Inherent Limitations of Internal Financial
of the internal financial controls system Controls Over Financial Reporting
Management’s Responsibility for Internal over financial reporting and their operating
Financial Controls Because of the inherent limitations of
effectiveness. Our audit of internal financial
internal financial controls over financial
The Company’s management is responsible controls over financial reporting included
reporting, including the possibility of
for establishing and maintaining internal obtaining an understanding of internal
collusion or improper management override
financial controls based on the internal financial controls over financial reporting,
of controls, material misstatements due to
control over financial reporting criteria assessing the risk that a material weakness
error or fraud may occur and not be detected.
established by the Company considering exists, and testing and evaluating the design
Also, projections of any evaluation of the
the essential components of internal and operating effectiveness of internal
internal financial controls over financial
control stated in the Guidance Note on control based on the assessed risk. The
reporting to future periods are subject to the
Audit of Internal Financial Controls over procedures selected depend on the auditor’s
risk that the internal financial control over
Financial Reporting issued by the Institute judgment, including the assessment of
financial reporting may become inadequate
of Chartered Accountants of India (‘ICAI’). the risks of material misstatement of the
because of changes in conditions, or that the
These responsibilities include the design, standalone Ind AS financial statements,
degree of compliance with the policies or
whether due to fraud or error.
implementation and maintenance of procedures may deteriorate.
adequate internal financial controls that We believe that the audit evidence we have
were operating effectively for ensuring Opinion
obtained is sufficient and appropriate to
the orderly and efficient conduct of its provide a basis for our audit opinion on the In our opinion, the Company has, in all
business, including adherence to company’s Company’s internal financial controls system material respects, an adequate internal
policies, the safeguarding of its assets, the over financial reporting. financial controls system over financial
prevention and detection of frauds and reporting and such internal financial controls
errors, the accuracy and completeness of Meaning of Internal Financial Controls over
over financial reporting were operating
the accounting records, and the timely Financial Reporting
effectively as at 31st March 2017, based on
preparation of reliable financial information, A company's internal financial control over the internal control over financial reporting
as required under the Companies Act, 2013. financial reporting is a process designed to criteria established by the Company
provide reasonable assurance regarding considering the essential components of
Auditors’ Responsibility
the reliability of financial reporting and the internal control stated in the Guidance Note
Our responsibility is to express an opinion preparation of Ind AS financial statements on Audit of Internal Financial Controls Over
on the Company's internal financial controls for external purposes in accordance with Financial Reporting issued by the Institute of
over financial reporting based on our audit. generally accepted accounting principles. Chartered Accountants of India.
We conducted our audit in accordance with A company's internal financial control over
the Guidance Note on Audit of Internal financial reporting includes those policies
ASHWIN MANkESHWAR
Financial Controls over Financial Reporting and procedures that (1) pertain to the
Partner
(the “Guidance Note”) and the Standards maintenance of records that, in reasonable
Membership No. 046219
on Auditing, issued by ICAI and deemed detail, accurately and fairly reflect the
For and on behalf of
to be prescribed under section 143(10) of transactions and dispositions of the assets
K. K. Mankeshwar & Co.,
the Companies Act, 2013, to the extent of the company; (2) provide reasonable
Chartered Accountants
applicable to an audit of internal financial assurance that transactions are recorded
FRN: 106009W
controls, both applicable to an audit of as necessary to permit preparation of Ind
Internal Financial Controls and, both issued AS financial statements in accordance with New Delhi, dated the
by the Institute of Chartered Accountants generally accepted accounting principles, 23rd May, 2017
` in Lacs
Note No. as at as at as at
31st March-2017 31st March-2016 1st april-2015
assETs
(1) Non-current assets
(a) Property, Plant and Equipment 5 233,538 258,319 263,439
(b) Capital work-in-progress 6 28,112 26,711 16,041
(c) Other intangible assets 7 3,351 4,978 5,785
(d) Intangible assets under development 8 3,144 3,144 -
(e) Financial assets
(i) Investments 9 106,535 106,535 81,378
(ii) Others 10 171 223 350
(f) Other non-current assets 11 28 29 46
(2) current assets
(a) Inventories 12 32,468 28,478 29,363
(b) Financial assets
(i) Trade receivables 13 537 1,555 5,663
(ii) Cash and cash equivalents 14 253 5,627 746
(iii) Bank balances other than (ii) above 15 246 260 270
(iv) Loans 16 52,764 48,772 13,607
(v) Others 17 875 771 784
(c) Other current assets 18 6,299 6,359 5,546
Asset Held For Sale - - 11
Total assets 468,321 491,761 423,029
As per our report of even date attached For Ballarpur Industries Limited
aShWIn ManKeShWaR R. R. VeDeRah
Partner Vice Chairman
Membership No. 046219
B. haRIhaRan
For and on behalf of
Group Director (Finance)
K. K. ManKeShWaR & co.
Chartered Accountants BIMal KhanDelWal
FRN: 106009W Chief Financial Officer
` in Lacs
As per our report of even date attached For Ballarpur Industries Limited
aShWIn ManKeShWaR R. R. VeDeRah
Partner Vice Chairman
Membership No. 046219
B. haRIhaRan
For and on behalf of
Group Director (Finance)
K. K. ManKeShWaR & co.
Chartered Accountants BIMal KhanDelWal
FRN: 106009W Chief Financial Officer
Financials 49
ANNUAL REPORT 2016-17
caSh floW StateMent
FOr ThE FINaNcIaL
YEar ENDED March 31, 2017
` in Lacs
31sT March 2017 31sT March 2016
As per our report of even date attached For Ballarpur Industries Limited
aShWIn ManKeShWaR R. R. VeDeRah
Partner Vice Chairman
Membership No. 046219
B. haRIhaRan
For and on behalf of
Group Director (Finance)
K. K. ManKeShWaR & co.
Chartered Accountants BIMal KhanDelWal
FRN: 106009W Chief Financial Officer
As per our report of even date attached For Ballarpur Industries Limited
aShWIn ManKeShWaR R. R. VeDeRah
Partner Vice Chairman
Membership No. 046219
B. haRIhaRan
For and on behalf of
Group Director (Finance)
K. K. ManKeShWaR & co.
Chartered Accountants BIMal KhanDelWal
FRN: 106009W Chief Financial Officer
Financials
ANNUAL REPORT 2016-17
New Delhi, dated the aKhIl MahaJan
23rd May, 2017 Company Secretary
51
SIgnIfIcant accountIng PolIcIeS anD noteS to fInancIal StateMentS
1 cOMPaNY OVErVIEW
Ballarpur Industries Limited (“BILT” or the company) is in the business of manufacturing and selling of Paper, pulp and paper products
and its manufacturing operations are spread over two units namely Kamlapuram (Telangana) and Shreegopal (Haryana).
The financial statements were authorised for issue in accordance with a resolution of the directors on 23rd May, 2017.
2 BasIs OF PrEParaTION aND UsE OF EsTIMaTEs
2.1 BasIs OF PrEParaTION OF FINaNcIaL sTaTEMENTs
The Financial statements (FS) of the company have been prepared in accordance with Indian Accounting Standards (Ind AS) notified under
the Companies (Indian Accounting Standards) Rules, 2015 (as amended) and presentation requirements of Division II of Schedule III to the
Companies Act, 2013, (Ind AS compliant Schedule III), as applicable to the Financial statements.
For all periods up to and including the year ended 31st March 2016, the Company prepared its financial statements in accordance with
Indian GAAP, including accounting standards notified under the section 133 of the Companies Act 2013, read together with paragraph 7
of the Companies (Accounts) Rules, 2014. These financial statements for the year ended 31st March 2017 are the first the Company has
prepared in accordance with Ind-AS.
The Company has consistently applied the accounting policies used in the preparation of its opening IND-AS Balance Sheet at April 1,
2015 throughout all periods presented, as if these policies had always been in effect and are covered by IND AS 101 ‘’First-time adoption
of Indian Accounting Standards’’. The transition was carried out from accounting principles generally accepted in India (‘’Indian GAAP’’)
which is considered as the previous GAAP, as defined in IND AS 101. The reconciliation of effects of the transition from Indian GAAP on
the equity as at April 1, 2015 and March 31, 2016 and on the net profit and cash flows for the year ended March 31, 2016 is disclosed in
Note No 46 to these financial statements.
The Financial statements have been prepared on a historical cost basis, except for the following assets and liabilities which have been
measured at fair value:
• Land and buildings classified as property, plant and equipment;
• Derivative financial instruments;
• Certain financial assets and liabilities measured at fair value (refer accounting policy regarding financial instruments).
2.2 UsE OF EsTIMaTEs
The preparation of Financial Statements requires estimates and assumptions to be made that affect the reported amount of assets and
liabilities as at the date of the Financial Statements and the reported amount of revenues and expenses during the reporting period/year.
The difference between the actual results and estimates are recognised in the year in which the results are known/materialise.
All Assets and liabilities have been classified as current or non-current as per the Company’s normal operating cycle and other criteria
set out in the schedule III to the Companies Act, 2013. Based on the nature of products and the time between the acquisition of assets
for processing and their realisation in cash and cash equivalent, the Company has ascertained its operating cycle as 12 months for the
purpose of current/non-current classification of assets and liabilities
3 sIGNIFIcaNT accOUNTING POLIcIEs
3.1 cUrrENT VErsUs NON-cUrrENT cLassIFIcaTION
The Company presents assets and liabilities in the balance sheet based on current/ non-current classification. An asset is classified as
current when it is:
• Expected to be realised or intended to sold or consumed in normal operating cycle
• Held primarily for the purpose of trading
• Expected to be realised within twelve months after the reporting period, or
• Cash or cash equivalent unless restricted from being exchanged or used to settle a liability for at least twelve months after the
reporting period
All other assets are classified as non-current.
A liability is current when:
• It is expected to be settled in normal operating cycle
• It is held primarily for the purpose of trading
• It is due to be settled within twelve months after the reporting period, or
• There is no unconditional right to defer the settlement of the liability for at least twelve months after the reporting period
The Company classifies all other liabilities as non-current. Deferred tax assets and liabilities are classified as non-current assets and
liabilities.
Financials 53
ANNUAL REPORT 2016-17
SIgnIfIcant accountIng PolIcIeS anD noteS to fInancIal StateMentS
(ii) amortization of intangible assets with finite useful lives
Amortization is recognized in profit or loss on a straight-line basis over the estimated useful lives of intangible assets from the date
that they are available for use. Expenditure on specialised software are amortised over seven years.
3.5 rEsEarch & DEVELOPMENT cOsT
Research costs are expensed as incurred. Development expenditures on an individual project are recognised as an intangible asset when
the Company can demonstrate:
• The technical feasibility of completing the intangible asset so that the asset will be available for use or sale;
• Its intention to complete and its ability and intention to use or sell the asset;
• there is an ability to use or sell the asset;
• How the asset will generate future economic benefits;
• adequate technical, financial and other resources to complete the asset
• The ability to measure reliably the expenditure during development;
Following initial recognition of the development expenditure as an asset, the asset is carried at cost less any accumulated amortisation
and accumulated impairment losses (if any). Amortisation of the asset begins when development is complete and the asset is available
for use. It is amortised over the period of expected future benefit. Amortisation expense is recognised in the statement of profit and loss.
During the period of development, the asset is tested for impairment annually.
3.6 IMPaIrMENT OF NON-FINaNcIaL assETs
Assets that have an indefinite useful life, for example goodwill, are not subject to amortisation and are tested annually for impairment and
additionally whenever there is a triggering event for impairment. Assets that are subject to amortisation and depreciation are reviewed
for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. An impairment
loss is recognised for the amount by which the asset’s carrying amount of cash generating units exceeds its recoverable amount. The
recoverable amount of a cash generating unit is the higher of cash generating unit’s fair value less cost of disposal and its value in use.
3.7 INVENTOrIEs
Inventories are valued at the lower of cost or net realisable value.
Costs incurred in bringing each product to its present location and condition is accounted for as follows:
• Raw materials, Stores, Spare Parts, Chemicals: are valued at cost, computed on weighted average basis.
• Finished goods and work in progress: are valued at cost or net realisable value, whichever is lower. In the case of finished goods
and work in process cost comprises of material, direct labour and applicable overhead expenses. The cost of finished goods also
includes applicable excise duty.
• Traded goods: cost includes cost of purchase and other costs incurred in bringing the inventories to their present location and
condition. Cost is determined on weighted average basis.
Net realisable value is the estimated selling price in the ordinary course of business, less estimated costs of completion and the estimated
costs necessary to make the sale.
3.8 FOrEIGN cUrrENcIEs
The Company’s financial statements are presented in INR, which is functional currency of the Company.
Transactions and balances
Transactions in foreign currencies are initially recorded by the Company’s at their respective functional currency spot rates at the date
the transaction first qualifies for recognition.
Monetary assets and liabilities denominated in foreign currencies are translated at the functional currency spot rates of exchange at the
reporting date.
Differences arising on settlement or translation of monetary items are recognised in profit or loss.
The Company has availed the exemption available in IND AS 101, to continue capitalisation of foreign currency fluctuation on long term
foreign currency monetary liabilities outstanding on transition date.
3.9 FINaNcIaL INsTrUMENTs – INITIaL rEcOGNITION, sUBsEQUENT MEasUrEMENT aND IMPaIrMENT
A financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability or equity instrument of
another entity.
Financials 55
ANNUAL REPORT 2016-17
SIgnIfIcant accountIng PolIcIeS anD noteS to fInancIal StateMentS
FINaNcIaL LIaBILITIEs
(i) Initial recognition and measurement:
All financial liabilities are recognised initially at fair value and, in the case of loans, borrowings and payables, net of directly
attributable transaction costs. Financial liabilities include trade and other payables, loans and borrowings including bank overdrafts
and derivative financial instruments.
(ii) classification & subsequent measurement:
If a financial instrument that was previously recognised as a financial asset is measured at fair value through profit or loss and its
fair value decreases below zero, it is a financial liability measured in accordance with IND AS. Financial liabilities are classified as
held for trading, if they are incurred for the purpose of repurchasing in the near term. This category also includes derivative financial
instruments that are not designated as hedging instruments in hedge relationships as defined by Ind AS 109. Separated embedded
derivatives are also classified as held for trading unless they are designated as effective hedging instruments.
The Company classifies all financial liabilities as subsequently measured at amortised cost, except for financial liabilities at fair
value through profit or loss. Such liabilities, including derivatives that are liabilities, shall be subsequently measured at fair value.
(iii) Loans and Borrowings:
Interest-bearing loans and borrowings are subsequently measured at amortised cost using the Effective Interest Rate (EIR) method.
Gains and losses are recognised in profit or loss when the liabilities are derecognised as well as through EIR amortisation process.
Amortised cost is calculated by taking into account any discount or premium on acquisition and fees or costs that are an integral
part of the EIR. The EIR amortisation is included as finance costs in the statement of profit and loss. After initial recognition Gain
and Liabilities held for Trading are recognised in statement of profit and Loss Account.
(iv) Derecognition of Financial Liabilities:
A financial liability is derecognised when the obligation under the liability is discharged or cancelled or expires. When an existing
financial liability is replaced by another from the same lender on substantially different terms, or the terms of an existing liability are
substantially modified, such an exchange or modification is treated as the derecognition of the original liability and the recognition
of a new liability. The difference in the respective carrying amounts is recognised in the Statement of Profit and Loss.
(v) Derivative Financial Instrument:
The Company uses derivative financial instruments, such as interest rate swaps, to hedge its interest rate risks. Such derivative
financial instruments are initially recognised at fair value on the date on which a derivative contract is entered into and are
subsequently remeasured at fair value. Derivatives are carried as financial assets when the fair value is positive and as financial
liabilities when the fair value is negative.
Offsetting financial instruments:
Financial assets and liabilities are offset and the net amount reported in the balance sheet when there is a legally enforceable right to
offset the recognised amounts and there is an intention to settle on a net basis to realise the asset and settle the liability simultaneously.
Subsequent recoveries of amounts previously written off are credited to Other Income.
3.10 cOMPOUND FINaNcIaL INsTrUMENTs
The liability component of a compound financial instrument is recognised initially at fair value of a similar liability that does not have
an equity component. The equity component is recognised initially at the difference between the fair value of the compound financial
instrument as a whole and the fair value of the liability component. Any directly attributable transaction costs are allocated to the liability
and the equity components, if material, in proportion to their initial carrying amounts.
Subsequent to the initial recognition, the liability component of a compound financial instrument is measured at amortised cost using the
effective interest method. The equity component of a compound financial instrument is not re-measured subsequent to initial recognition
except on conversion or expiry.
3.11 cash aND cash EQUIVaLENTs
Cash and cash equivalents in the balance sheet comprise cash on hand and at bank, deposits held at call with banks, other short-term
highly liquid investments with original maturities of three months or less that are readily convertible to a known amount of cash and are
subject to an insignificant risk of changes in value and are held for the purpose of meeting short-term cash commitments.
For the purpose of the statement of cash flows, cash and cash equivalents consist of cash and short-term deposits, as defined above, net
of outstanding bank overdrafts as they are considered an integral part of the Company’s cash management.
3.12 PrOVIsIONs, cONTINGENT LIaBILITIEs, cONTINGENT assETs aND cOMMITMENTs
(i) General
Provisions are recognised when the Company has a present obligation (legal or constructive) as a result of a past event, it is
probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate
can be made of the amount of the obligation. If the effect of the time value of money is material, the amount of a provision shall be
Financials 57
ANNUAL REPORT 2016-17
SIgnIfIcant accountIng PolIcIeS anD noteS to fInancIal StateMentS
3.16 EMPLOYEE BENEFITs
(i) short term employee benefits:
Short term employee benefits are expensed as & when the related service is provided. A liability is recognized for the amount
expected to be paid if the Company has a present legal or constructive obligation to pay this amount as a result of past service
provided by the employee and the obligation can be estimated reliably
(ii) Defined benefit plans:
The Company’s net obligation in respect of defined benefit plans is calculated separately for each plan by estimating the amount of
future benefit that employees have earned in the current and prior periods, discounting that amount and deducting the fair value
of any plan assets. The calculation of defined benefit obligations is performed annually by a qualified actuary using the projected
unit credit method. When the calculation results in a potential asset for the Company and its subsidiaries, the recognized asset is
limited to the present value of economic benefits available in the form of any future refunds from the plan or reductions in future
contributions to the plan. To calculate the present value of economic benefits, consideration is given to any applicable minimum
funding requirements. Remeasurement of the net defined benefit liability, which comprises actuarial gains and losses, the return
on plan assets (excluding interest) and the effect of the asset ceiling (if any, excluding interest), are recognized immediately in Other
comprehensive income. Net interest expense/(income) on the net defined liability/(assets) is computed by applying the discount
rate, used to measure the net defined liability/(asset), the start of the financial year after taking into account any changes as a result
of contribution and benefit payments during the year. Net interest expense and other expenses related to defined benefit plans are
recognised in Statement of Profit and Loss.
(iii) Long-term employee benefits:
The Company’s net obligation in respect of long - term employee benefits is the amount of future benefit that employees have
earned in return for their service in the current and prior periods. That benefit is discounted to determine its present value.
Remeasurement is recognised in Statement of Profit and Loss in the period in which they arise.
(iv) Post - employment benefits - Defined contribution plans:
The Company’s contributions to defined contribution plans are charged to the income statement in the period to which they relate.
Once the contributions have been paid, the Company has no further payment obligations. Prepaid contributions are recognised as
an asset to the extent that a cash refund or a reduction in the future payments is available.
(v) Termination benefits
Termination benefits are employee benefits provided in exchange for the termination of an employee’s employment as a result of
either:
(a) an entity’s decision to terminate an employee’s employment before the normal retirement date; or
(b) an employee’s decision to accept an offer of benefits in exchange for the termination of employment.
3.17 LEasEs
(i) Lease payments:
Payments made under operating leases are recognized in Statement of Profit and Loss. Lease incentives received are recognized
as an integral part of the total lease expense, over the term of the lease. Minimum lease payments made under finance leases are
apportioned between the finance expense and the reduction of the outstanding liability. The finance expense is allocated to each
period during the lease term so as to produce a constant periodic rate of interest on the remaining balance of the liability.
(ii) Lease assets:
A lease is an agreement whereby the lessor conveys to the lessee in return for a payment or series of payments the right to use an
asset for an agreed period of time.
A finance lease is a lease that transfers substantially all the risks and rewards incidental to ownership of an asset. Title may or may
not eventually be transferred. The leased assets are measured initially at an amount equal to the lower of their fair value and the
present value of the minimum lease payments. Subsequent to initial recognition, the assets are accounted for in accordance with
the accounting policy applicable to that asset.
3.18 TaXEs
(i) Income tax
Income tax expense comprises current and deferred tax. It is recognised in statement of profit and loss except to the extent that it
relates to a business combination, or items recognised directly in equity or in other comprehensive income.
Management periodically evaluates positions taken in the tax returns with respect to situations in which applicable tax regulations
are subject to interpretation and establishes provisions where appropriate.
Financials 59
ANNUAL REPORT 2016-17
as aT March 31, 2017
60
noteS to the fInancIal StateMentS
` in Lacs
7. INTaNGIBLE assETs
ParTIcULars as at 31st March-2017 as at 31st March-2016
Product Others Total Product Others Total
Development Development
Expense Expense
Opening net carrying value 2,707 2,271 4,978 3,401 2,384 5,785
Additions - - - - - -
Amortization charge during the year 694 933 1,627 694 113 807
closing carrying Value 2,013 1,338 3,351 2,707 2,271 4,978
Financials 61
ANNUAL REPORT 2016-17
noteS to the fInancIal StateMentS as aT March 31, 2017
` in Lacs
12 INVENTOrIEs
Particulars as at as at as at
31st March-2017 31st March-2016 1st april-2015
Raw materials 2,201 1,640 5,245
Work in progress 123 359 1,890
Finished goods 17 2,419 8,033
Stores and spares 20,075 16,240 5,570
Chemicals 8,809 6,478 7,177
Packing material 1,243 1,342 1,448
Total 32,468 28,478 29,363
18.1) Includes stores & spares-in-transit of ` 11 Lacs (Previous Year As At 31 March, 2016 ` 8 Lacs & As At 01 April 2015 ` 5 Lacs)
18.2) Includes Chemicals-in-transit of ` 18 Lacs (Previous Year As At 31 March, 2016 ` 23 Lacs & As At 01 April 2015 ` 299 Lacs)
18.3) Includes Packing Material-in-transit of ` 11 Lacs (Previous Year As At 31 March, 2016 Nil & As At 01 April 2015 ` 36 Lacs)
13 TraDE rEcEIVaBLEs
Particulars as at as at as at
31st March-2017 31st March-2016 1st april-2015
Secured, Considered good:-
- Due from others (more than 6 months) - - -
- Due from others (less than 6 months) 62 218 503
Total secured 62 218 503
Unsecured, Considered good
- Due from related parties - - 540
- Due from others (more than 6 months) 192 41 133
- Due from others (less than 6 months) 283 1,296 4,487
Total Unsecured 475 1,337 5,160
Total 537 1,555 5,663
` in Lacs
16 LOaNs
Particulars as at as at as at
31st March-2017 31st March-2016 1st april-2015
Unsecured, considered good :-
(a) Loans to related parties 50,353 44,901 10,809
(b) Loans to others 2,411 3,871 2,798
Total 52,764 48,772 13,607
Particulars as at as at as at
31st March-2017 31st March-2016 1st april-2015
authorised
750,000,000 (March 31, 2016: 750,000,000, March 31, 2015: 750,000,000) 15,000 15,000 15,000
Equity shares of ` 2/- each
25,000,000 (March 31, 2016: 25,000,000, March 31, 2015: 25,000,000) 25,000 25,000 25,000
Preference shares of ` 100/- each
40,000 40,000 40,000
Issued capital
655,773,584 (March 31, 2016: 655,773,584, March 31, 2015: 655,773,584) 13,115 13,115 13,115
Equity shares of ` 2/- each
13,115 13,115 13,115
Financials 63
ANNUAL REPORT 2016-17
noteS to the fInancIal StateMentS as aT March 31, 2017
` in Lacs
Particulars as at as at as at
31st March-2017 31st March-2016 1st april-2015
subscribed and Paid up capital
655,773,584 (March 31, 2016: 655,773,584, March 31, 2015: 655,773,584) 13,115 13,115 13,115
Equity shares of ` 2/- each
Less: Forfeited shares - 249,745 (March 31, 2016: 249,745, March 31, 5 5 5
2015: 249,745) Equity shares of ` 2/- each
655,523,839 (March 31, 2016: 655,523,839, March 31, 2015: 655,523,839) 13,110 13,110 13,110
Equity shares of ` 2/- each
Add: Amount originally paid up on forfeited shares 2 2 2
13,112 13,112 13,112
c) Details of shares held by shareholders holding more than 5% of the aggregate shares in the company:
Name of shareholders as at 31st March-2017 as at 31st March-2016 as at 1st april-2015
No. of shares holding % No. of shares holding % No. of shares holding %
a) Avantha Holdings Limited 322,689,019 49.23% 322,689,019 49.23% 322,689,019 49.23%
b) Life Insurance Corporation 43,872,365 6.69% 43,872,365 6.69% 44,134,423 6.73%
of India
c) Samera Special Situations 59,480,544 9.07% 59,480,544 9.07% 41,515,609 6.33%
Mauritius
d) Platinum Investment - - 35,282,244 5.38% 35,282,244 5.38%
Management Ltd. A/c Platinum
Asia Fund
e) Finquest Securities Private 35,458,000 5.41% - - - -
Limited
d) Terms of securities convertible into equity shares:
123 (March 31, 2016: 123) equity shares of ` 2/- each represent 41 underlying Global Depository Receipts.
e) Under Previous GAAP, proposed dividend including dividend distribution tax (DDT), are recognised as liability in the period to which
they relate, irrespective of when they are declared. Under Ind AS, proposed dividend is recognised as a liability in the period in
which it is declared by the Company, usually when approved by shareholders in the general meeting, or paid. and its reversal
impact thereof along with effect of dividend tax.
20 BOrrOWINGs:
Particulars as at as at as at
31st March-2017 31st March-2016 1st april-2015
Non-current Borrowings:
secured Loan:-
a) Non convertible debentures 15,000 15,000 15,000
b) Term loan from :-
Bank 47,709 67,381 14,586
Financial Institutions 12,500 8,393 12,964
Total 75,209 90,774 42,550
current Borrowings:
Working capital loan 158,893 100,477 107,507
Total 158,893 100,477 107,507
` in Lacs
a) The Company had availed various secured financial facilities from the banks and financial institutions (“the Lenders”). The said
loans are secured by way of a first pari-passu charge over all moveable / immoveable assets of the company both present and
future.
b) All the loans as mentioned above are in Indian Currency except working capital loan taken from Standard Chartered Bank of GBP
73.40 Lacs (O/s Amount as on 31.03.2017: ` 6123 Lacs.
c) The Company is required to maintain ratios (including total debt to net worth, EBITDA to gross interest, debt service coverage ratio
and secured coverage ratio) as mentioned in the loan agreements at specified levels. In the event of failure to meet any of these
ratios these loans become callable at the option of lenders, except where exemption is provided by lender.
d) In the current financial year, due to delay in repayments of debts and payment of interest, the lenders of the company have invoked
standstill provision. As of March 31, 2017, the Company had breached the financial covenants set by its bankers for outstanding
term loans amounting to ` 2,429 Lacs. The details is as under:-
Borrowing Particulars Default Upto 3 Months 3 to 6 Months
Outstanding
amount
Exim Bank 1,429 714 715
State Bank Of Travancore 375 125 250
The South Indian Bank 500 500 -
IDBI Bank 125 125 -
Total 2,429 1,464 965
Therefore, company is in discussions with banks to finalise & implement SDR/Other restructuring packeges.
e) The maturity profile of the company's borrowing at the reporting date based on contractual undiscounted repayment obligation
are as follows :-
Year Nature as at
31st March-2017
2017-18 Current 17,235
2018-19 14,757
2019-20 17,773
2020-21 16,300
Non-Current
2021-22 16,200
2022-23 7,695
2023-24 3,000
f) The term loans, working capital loans etc. are arranged at fixed & floating rates. The interest rates per annum are as follows:-
Particulars as at as at as at
31st March-2017 31st March-2016 1st april-2015
a) Non convertible debentures 11.75% 11.75% 11.75%
b) Term loan from :-
Bank 11.45% to 12.27% 11.45% to 12.27% 11.75% to 12.00%
Financial Institutions 11.20% to 12.00% 11.20% to 12.00% 11.75% to 12.01%
c) Working capital loan 11.50% to 14.00% 11.75% to 12.25% 11.75% to 12.25%
Financials 65
ANNUAL REPORT 2016-17
as aT March 31, 2017
66
noteS to the fInancIal StateMentS
g) Loan from Bank/Financial Institutions :-
` in Lacs
sl. Name of Bank sanctioned as on date Total current Non- Interest security repayment terms
No. amount Outstanding current rate
amount
a) Exim Bank 15,000 31-March-17 9,222 4,286 4,936 Base Rate The Loan is secured by way of a first
Term loan is repayable in 21 equal quarterly
31-March-16 10,690 3,571 7,119 + 1.50% pari-passu charge over all moveable
installments starting from the end of 24
1-April-15 13,534 2,857 10,677 initially fixed assets of the company both
months from the date of first disbursement
` in Lacs
22 PrOVIsIONs
Particulars as at as at as at
31st March-2017 31st March-2016 1st april-2015
Provisions for employee benefits :-
- Provision for gratuity 2,582 2,667 2,572
- Provision for leave encashment 697 874 850
Total 3,279 3,541 3,422
24 TraDE PaYaBLEs
Particulars as at as at as at
31st March-2017 31st March-2016 1st april-2015
For acceptances
To micro,small and medium enterprises 155 106 87
Payable to related parties 0 12 3
Other payables 11,704 12,408 12,007
Total 11,859 12,526 12,097
Micro and Small Enterprises under the Micro and Small Enterprises Development Act, 2006 have been determined based on the
information available with the Company and the required disclosures are given below:
Particulars as at as at as at
31st March-2017 31st March-2016 1st april-2015
Principal amount due & remaining unpaid - - -
Interest due thereon - - -
Interest paid by the Company in terms of Section 16 - - -
Interest due and payable for the period of delay in payment - - -
Interest accrued and remaining unpaid - - -
Interest remaining due and payable even in succeeding years - - -
Financials 67
ANNUAL REPORT 2016-17
noteS to the fInancIal StateMentS as aT March 31, 2017
` in Lacs
27 PrOVIsIONs
Particulars as at as at as at
31st March-2017 31st March-2016 1st april-2015
Provisions for employee benefits :
- Provision for gratuity 442 390 396
- Provision for leave encashment 260 172 203
Provision for tax including MAT 3,419 1,410 1,247
Others provisions (Net of payment) (refer Note 27.1) 71 66 61
Total 4,192 2,038 1,907
27.1 The Company is carrying provision for obligation as on Balance Sheet date, which may result in outflow of resources. The following is
the disclosure of such provisions covered under Ind AS 37.
as at Provision Provision as at
1st april-2015 During the Year Utilised/reversed 31st March- 2016
During the Year
Provision For Sales Tax* 61 5 - 66
as at Provision Provision as at
1st april-2016 During the Year Utilised/reversed 31st March- 2017
During the Year
Provision For Sales Tax 66 5 - 71
*Represents provisions against sales tax cases for which appeal has been filed before Punjab VAT Tribunal at Chandigarh.
` in Lacs
29 OThEr INcOME
Particulars Year ended Year ended
31-March-2017 31-March-2016
Profit on sale of Property, Plant & Equipments (Net) 3,436 2,786
Gain on foreign currency fluctuations 3 -
Rent and license fee 1 1
Interest earned 3 10
Other non operating income (net of expenses directly attributable to such income) 3,253 2,562
Dividend Income - 1
Total 6,696 5,360
31 INcrEasE/DEcrEasE IN sTOck
Particulars Year ended Year ended
31-March-2017 31-March-2016
stock at the beginning of the Period/year
Finished Goods
Paper 2,362 7,332
Pulp 57 701
2,419 8,033
Work in Progress
Paper 356 873
Pulp 3 1,017
359 1,890
Total (a) 2,778 9,923
stocks at the end of the period/year
Finished Goods
Paper 17 2,362
Pulp - 57
17 2,419
Work in Progress
Paper 123 356
Pulp - 3
123 359
Total (B) 140 2,778
Increase /(Decrease) (a-B) 2,638 7,145
Financials 69
ANNUAL REPORT 2016-17
noteS to the fInancIal StateMentS
FOr ThE FINaNcIaL
YEar ENDED March 31, 2017
` in Lacs
33 FINaNcE cOsTs
Particulars Year ended Year ended
31-March-2017 31-March-2016
Interest expenses 16,291 10,799
Other borrowing costs 562 3
Net loss / (gain) in foreign currency transcation and translation (47) (49)
Less: Interest earned (1,487) (5,560)
Total 15,319 5,193
34 OThEr EXPENsEs
Particulars Year ended Year ended
31-March-2017 31-March-2016
Consumption of stores and spare parts 419 586
Power and fuel 6,343 11,624
Excise duty on year end inventory of finished goods (33) (48)
Rent 2,080 1,242
Repairs to buildings 63 71
Repairs to machinery 475 604
Repairs others 70 84
Insurance 143 145
Rates and taxes 154 90
Other manufacturing expenses 195 542
Office & other expenses 584 1,005
CSR Expenses 13 29
Selling expenses 1,274 52
Bad Debts 564 -
Carriage and freight 629 899
*Legal and professional charges 132 134
Directors sitting fees 11 12
Total 13,116 17,071
*Legal & Professional Expenses includes amount of payment to Auditor (refer Note. 39).
35 EXcEPTIONaL ITEMs
Particulars Year ended Year ended
31-March-2017 31-March-2016
Impairment of Property, Plant & Equipments 20,100 -
Others 5,049 -
Total 25,149 -
Impairment of asset review of one unit at 'kamplapuram'
1. Due to non-operation of unit at 'Kamlapuram', this plant was not serviced / maintained in satisfactory running condition, thereby
requiring impairment testing under Ind AS 36. The unit had appointed a registered valuer and based on his report an impairment
loss amounting to ` 20,100/- Lacs has been charged to Profit & Loss Account under exceptional item. To arrive at the impairment
amount, Valuer have adopted Fair Market Value using CostApproach, applying relevant index and relevant reduction factors as the
plant was not in operation for almost last 36 months.
2. Further, company has also written off the inventory of ` 4,771/- Lacs & Advance to Supplier of ` 278/- Lacs under exceptional item
of Kamlapuram Plant.
36 FINaNcIaL INsTrUMENTs
a) capital risk Management
The company manages its capital to ensure the Company will be able to continue as a going concern while maximising the return
to stakeholders through the optimisation of the debt and equity balances.
The company manages its capital structure and makes adjustments in light of changes in economic conditions and the requirement
of the financial covenants. The funding requirement is met through a mixture of equity, internal accrual, long term borrowings
and short term borrowings. The Company monitors capital using a gearing ratio, which is net debt divided by total capital plus net
debt.
` in Lacs
Particulars as at as at
31st March-2017 31st March-2016
Loans and borrowings 234,102 191,251
Less: cash and cash equivalents 253 5,627
Net debt 233,849 185,624
Equity 122,414 167,587
Capital and net debt 356,263 353,211
Gearing ratio 0.66 0.53
Financial Liabilities
Other financial libailties
Bank borrowings (including current maturities) 251,337 197,422
Interest accrued but not due on borrowings 7,982 1,753
Due to related party 52,259 93,205
Trade payables 11,859 12,526
Payable to employees 5,661 3,089
Statutory Dues 4,399 3,406
Security deposits including interest there on 211 783
Liability For Compulsory / Optional Buyback 179 181
Other financial liability 111 146
c) Financial risk Management Objectives and Policies
The operations of the Company are subject to a variety of financial risks, including market risk, foreign currency risk, credit risk,
interest rate risk and liquidity risk. The Company has formulated a financial risk management framework whose principal objective
is to minimise the Company's exposure to risks and/or costs associated with the financing, investing and operating activities of the
Company.
Various risk management policies are approved by the Board for monitoring on the day-to-day operations for the control and
management of the risks associated with financial instruments.
i) Market risk
Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market
prices. Market prices comprise three types of risk: currency rate risk, interest rate risk and other price risks, such as equity price
risk and commodity risk. Financial instruments affected by market risk include loans and borrowings, deposits, investments, and
derivative financial instruments.
(a) Foreign exchange risk and sensitivity
The Company transacts business primarily in Indian Rupee and no material transactions have been done in foreign currency,
accordingly the company is not exposed to any material foreign exchange risk.
(b) Interest rate risk and sensitivity
Financials 71
ANNUAL REPORT 2016-17
noteS to the fInancIal StateMentS as aT March 31, 2017
Interest rate risk is the risk that the fair value of future cash flows of the Company's financial instruments will fluctuate
because of changes in market interest rates.
The Company's exposure to interest rate risk arises primarily because of the bank borrowings comprising term loans, loans
against import and revolving credits which are at the aggregate of Base rate / MCLR and the apprlicable margin. The interest
rates for the said bank borrowings are disclosed in Note No. 20.
The sensitivity analyses below have been determined based on the exposure to interest rates for non-derivative instruments
at the end of the reporting period. For floating rate liabilities, the analysis is prepared assuming the amount of the liability
outstanding at the end of the reporting period was oustanding for the whole year. A 50 basis point increase or decrease is used
when reporting interest rate risk internally to key management personnel and represents management's assessment of the
reasonably possible change in interest rates.
The Company is required to maintain ratios (including total debt to net worth, EBITDA to gross interest, debt service coverage
ratio and secured coverage ratio) as mentioned in the loan agreements at specified levels. In the event of failure to meet any
of these ratios these loans become callable at the option of lenders, except where exemption is provided by lender.
Maturity profile of financial liabilities
The table below provides regarding the remaining contractual maturities of financial liabilities at the reporting date based on
contractual undiscounted payments.
` in Lacs
Particulars as at 31st March-2017 as at 31st March-2016 Total
Less than 1 to 5 years Total Less than 1 to 5 years
1 year 1 year
Due to related party 16 52,243 52,259 16 93,189 93,205
Trade payables 11,859 - 11,859 12,526 - 12,526
Payable to employees 5,661 - 5,661 3,089 - 3,089
Statutory Dues 4,399 - 4,399 3,406 - 3,406
Security deposits including interest 705 - 705 1,249 - 1,249
there on
Liability For Compulsory / Optional 179 - 179 181 - 181
Buyback
Other financial liability 111 - 111 146 - 146
Total 22,930 52,243 75,173 20,613 93,189 113,802
Segments have been identified taking into account nature of product and differential risk and returns of the segment. These business
segments are reviewed by the Chief Operating Officer of the Company (Chief operating decision maker).
The Expenses, which are not directly identifiable to a specific business segment are clubbed under “Unallocated Corporate Expenses” and
similarly, the common assets and liabilities, which are not identifiable to a specific segment are clubbed under “Unallocated Corporate
Assets/ Liabilities" on the basis of reasonable estimates.
` in Lacs
Particulars Year Paper PaPEr PULP TOTaL
PrODUcTs
& OFFIcE
sUPPLIEs
revenues
Gross Sale to External Customers 2016-17 18,925 3,267 115 22,307
2015-16 41,126 15,915 1,364 58,404
Excise Duty 2016-17 (1,026) (98) - (1,124)
2015-16 (2,453) (470) (82) (3,005)
Total Segment Revenues (Net of Excise) 2016-17 17,899 3,169 115 21,183
2015-16 38,673 15,445 1,282 55,399
segment results 2016-17 (3,993) 33 (4,860) (8,820)
2015-16 12,858 159 (5,525) 7,492
Less: Unallocated Corporate Expenses 2016-17 309
2015-16 308
Profit Before Interest, Tax and exceptional items 2016-17 (9,129)
2015-16 7,184
Interest & Finance Cost (Net) 2016-17 15,319
2015-16 5,193
Profit Before Tax & Exceptional Items 2016-17 (24,447)
2015-16 1,991
Exceptional Items 2016-17 25,149
2015-16 -
Provision For Tax 2016-17 -
- Current Tax (Net of MAT Credit Entitlement) 2015-16 218
- Deferred Tax 2016-17 (2,542)
2015-16 (393)
Financials 73
ANNUAL REPORT 2016-17
noteS to the fInancIal StateMentS
FOr ThE FINaNcIaL
YEar ENDED March 31, 2017
` in Lacs
Particulars Year Paper PaPEr PULP TOTaL
PrODUcTs
& OFFIcE
sUPPLIEs
Net Profit before OCI 2016-17 (47,054)
2015-16 2,166
Other Information
segmental assets 2016-17 323,261 6,983 31,044 361,288
2015-16 313,038 11,747 54,554 379,339
Unallocated Corporate assets 2016-17 107,033
2015-16 112,422
Total Assets 2016-17 468,321
2015-16 491,761
segmental Liabilities 2016-17 77,244 1,957 6,554 85,755
2015-16 106,099 4,595 4,166 114,860
Unallocated Corporate Liabilities 2016-17 6,117
2015-16 6,651
Total Liabilities 2016-17 91,872
2015-16 121,511
Capital Expenditure during the period/year 2016-17 1,557
2015-16 13,923
Depreciation 2016-17 5,269
2015-16 5,810
Total Liabilities Exclude
Long Term Borrowings 2016-17 75,209
2015-16 90,774
Short Term Borrowings 2016-17 158,893
2015-16 100,477
Current Maturities of Long Term Debts 2016-17 17,235
2015-16 6,171
Deferred tax liabilities 2016-17 2,698
2015-16 5,240
As per Ind AS-19 "Employee Benefits" , the disclosure of employee benefits as defined in the accounting standard are given below:
Defined contribution Plan*
Contribution to defined contribution Plan is recognized and charged off for the year, are as under :
c) reconciliation of opening and closing balances of the present value of the defined benefit obligations
Financials 75
ANNUAL REPORT 2016-17
noteS to the fInancIal StateMentS
FOr ThE FINaNcIaL
YEar ENDED March 31, 2017
g) Demographic assumptions
` in Lacs
39 OThEr DIscLOsUrEs
Particulars Year ended Year ended
March 31, 2017 March 31, 2016
a) auditors remunearation
Statutory Auditors
i. Audit Fee (Incl. Cost Audit Fees) 41 40
ii. Tax Audit Fee 8 8
iii. Limited Review 8 8
iv. Other capacity 4 11
iv. Reimbursement of Expenses 1 1
Total 62 68
Financials 77
ANNUAL REPORT 2016-17
noteS to the fInancIal StateMentS
FOr ThE FINaNcIaL
YEar ENDED March 31, 2017
` in Lacs
s. Particulars relationship 31.03.2017 31.3.2016
No.
a) sale of goods,rent received & allocation of common
expenses for rendering corporate service:
BILT Graphic Paper Products Limited Step Down Subsidiary 1,065 79
Ballarpur International Holdings B.V. (Guarantee Step Down Subsidiary 2,556 -
Commision Recd/Receivable)
Avantha Holdings Limited Other Related Parties - 0
b) Purchase of Goods & services, rent and commission/
royalty:
Ballarpur International Holdings B.V. Subsidiary - 2,260
BILT Graphic Paper Products Limited Step Down Subsidiary 492 2,259
Avantha Holdings Limited Other Related Parties - 79
Biltech Building Elements Limited Other Related Parties 26 31
c) Loan Given during the period/year
Ballarpur International Holdings B.V. Subsidiary - 12,562
d) Loan received during the period/year
Ballarpur International Holdings B.V. Subsidiary - 10,714
e) Interest on Loan Given:
Ballarpur International Holdings B.V. Subsidiary 959 655
Avantha Realty Limited Other Related Parties 300 501
Sabah Forest Industries Sdn. Bhd. Step Down Subsidiary 228 -
f) advances given during the period/year
Sabah Forest Industries Sdn. Bhd. Step Down Subsidiary 1,566 3,774
Mirabelle Trading Pte. Limited Other Related Parties 5,239 5,863
g) Dividend received
BILT Graphic Paper Products Limited Step Down Subsidiary - 1
h) remuneration:
Mr Gautam Thappar Key Management 1 2
Personnel
Mr. B Hariharan Key Management - 775
Personnel
Mr. Anup Kansal Key Management - 112
Personnel
j) Outstanding Balances as on 31st March 2017
Avantha Agritech ltd (BILT Tree Tech Limited name Subsidiary 11,085 -
change w.e.f. 30-07-2016)
Premier Tissues (India) Limited Subsidiary 61 17
Ballarpur International Holdings B.V. Subsidiary 19,328 15,566
Ballarpur Paper Holdings B.V. Step Down Subsidiary 12 12
Sabah Forest Industries Sdn Bhd Step Down Subsidiary 5,340 3,774
BILT Graphic Paper Products Limited Step Down Subsidiary (52,253) (93,201)
Biltech Building Elements Limited Other Related Parties 1,249 1,160
Avantha Holdings Limited Other Related Parties 6,128 1,169
Crompton Greaves Limited Other Related Parties (5) (4)
Saraswati Travels Private Limited Other Related Parties - 8
BILT Industrial Packaging Company Limited Other Related Parties 859 859
Global Green Company Limited Other Related Parties 376 376
Arizona Printers & Packers Private Limited Other Related Parties 1 1
UHL Power Company Limited Other Related Parties 473 473
Salient Business Solutions Limited Other Related Parties 0 0
Korba West Power Company Limited Other Related Parties (0) (0)
Financials 79
ANNUAL REPORT 2016-17
noteS to the fInancIal StateMentS
FOr ThE FINaNcIaL
YEar ENDED March 31, 2017
` in Lacs
s. Particulars relationship 31.03.2017 31.3.2016
No.
Solaris Chemtech Industries Limited Other Related Parties (5,257) 2,243
Avantha Power & Infrastructure Limited Other Related Parties (103) (103)
Avantha Realty Limited Other Related Parties (344) 13,479
Avantha Technologies Ltd Other Related Parties 43 -
Mirabelle Trading Pte. Ltd. Other Related Parties 11,103 5,863
Mr R R Vederah Key Management - 11
Personnel
Mr B Hariharan Key Management 5 5
Personnel
The following is a reconciliation of the equity shares used in the computation of basic and diluted earnings per equity share:
(Number of shares)
Particulars Year Ended Year Ended
March 31, 2017 March 31, 2016
Issued equity shares 655,523,839 655,523,839
Weighted average shares outstanding - Basic and Diluted - (A) 655,523,839 655,523,839
Net profit available to equity holders of the Company used in the basic and diluted earnings per share was determined as follows :-
43. During the year, the Company had specified bank notes or other denomination note as defined in the MCA notification G.S.R. 308(E)
dated March 31, 2017 on the details of Specified Bank Notes (SBN) held and transacted during the period from November 8, 2016 to
December, 30 2016, the denomination wise SBNs and other notes as per the notification is given below:
` in Lacs
Particulars specified Other Total
Bank Notes Denomination
Notes
Closing Cash in Hand as on 08-11-2016 5 0 5
Add: Permitted Receipts - 10 10
Less: Permitted Payments 0 7 7
Less Amount deposited in Banks 5 - 5
closing cash in hand as on 30-12-2016 - 3 3
* For the purposes of this clause, the term ‘Specified Bank Notes’ shall have the same meaning provided in the notification of the
Government of India, in the Ministry of Finance, Department of Economic Affairs number S.O. 3407(E), dated the 8th November, 2016.
44. The liability of the put option of subsidiaries, if any shall be determined and provided on settlement in view of on-going discussions with
banks.
45. The results of the company for the current year have been impacted due to lack of adequate working capital. The lenders of the company
have invoked standstill provision due to delays in repayment of debts & payment of interest. The company is in discussions with banks to
finalise & implement SDR/Other restructuring packages.
46. TraNsITION TO IND as
Basis of preparation
For all period up to and including the year ended March 31, 2016, the Company has prepared its financial statements in accordance with
generally accepted accounting principles in India (Indian GAAP). These financial statements for the year ended March 31, 2017 are the
Company’s first annual IND AS financial statements and have been prepared in accordance with IND AS.
Accordingly, the Company has prepared financial statements which comply with IND AS applicable for periods beginning on or after
April 1, 2015 as described in the accounting policies. In preparing these financial statements, the Company’s opening Balance Sheet
was prepared as at April 1, 2015 the Company’s date of transition to IND AS. This note explains the principal adjustments made by the
Company in restating its Indian GAAP Balance Sheet as at April 1, 2015 and its previously published Indian GAAP financial statements for
the year ended March 31, 2016.
Exemptions
Ind AS 101 allows first-time adopters certain exemptions from the retrospective application of certain requirements under Ind AS. The
Company has applied the following exemptions:
• to measure an item of property, plant and equipment at the date of transition to Ind AS at its fair value and use that fair value as its
deemed cost at that date.
• to apply previous GAAP carrying amount of its investment in subsidiaries, associates and Joint venture as deemed cost as on the
date of transition to Ind AS.
• continue the policy adopted for accounting for exchange differences arising from translation of long-term foreign currency monetary
items recognised in the financial statements for the period ending immediately before the beginning of the first Ind AS financial
reporting period as per the previous GAAP.
Exceptions
The following mandatory exceptions have been applied in accordance with Ind AS 101 in preparing the financial statements.
(a) Estimates
The estimates at 1st April 2015 and 31st March 2016 are consistent with those made for the same dates in accordance with India
GAAP (after adjustments to reflect any difference if any, in accounting policies) apart from the following items where application of
Indian GAAP did not require estimation:
• Impairment of financial assets based on expected credit loss model
The estimates used by the Company to present these amounts in accordance with Ind AS reflect conditions as at the transition
date and as of 31st March 2016.
(b) Derecognition of financial assets and financial liabilities
The company has elected to apply the derecognition requirements for financial assets and financial liabilities in Ind AS 109
prospectively for transactions occurring on or after the date of transition of Ind AS.
(c) Classification and measurement of financial assets
The Company has classified the financial assets in accordance with Ind AS 109 on the basis of facts and circumstances that exist at
the date of transition to Ind AS.
The following reconciliations and explanatory notes thereto describe the effects of the transition on the Ind AS Opening statement of
financial position as at April 1, 2015. All explanations should be read in conjunction with the accounting policies of the company as
disclosed in the Notes to the Accounts.
(` in Lacs)
Particulars Note No. 1-april-15 31-March-16
Other Equity as per Previous GaaP 147,937 149,714
adjustments to other equity
Fair valuation of Assets, Financial Assets & Financial Liabilities (III) a 5,243 5,243
Impact of effective interest rate on borrowings (III) b 77 372
Proposed dividend (including Corporate Dividend Tax) (III) c 1,578 -
Reclassification of acturial gain / losses, arising in respect of employee benefit (III) d (948) (854)
schemes, to Other Comprehensive Income (OCI)
Others items (94) -
Other Equity as per Ind as 153,793 154,475
II. The following reconciliations and explanatory notes thereto describe the effects of the transition on the Ind AS on Statement of
Profit and Loss for the year ended March 31, 2016. All explanations should be read in conjunction with the accounting policies of the
company as disclosed in the Notes to the Accounts.
(` in Lacs)
Particulars 2015-16
Profit / (Loss) as per Previous GaaP 1,777
Adjustments
a. Amortisation of Transaction costs using Effective Interest Rate Method (III) b 295
b. Reclassification of acturial gain / losses, arising in respect of employee (III) d 94
benefit schemes, to Other Comprehensive Income (OCI)
Total adjustments 389
Profit / (Loss) as per Ind as 2,166
Financials 81
ANNUAL REPORT 2016-17
noteS to the fInancIal StateMentS as aT March 31, 2017
As per our report of even date attached For Ballarpur Industries Limited
aShWIn ManKeShWaR R. R. VeDeRah
Partner Vice Chairman
Membership No. 046219
B. haRIhaRan
For and on behalf of
Group Director (Finance)
K. K. ManKeShWaR & co.
Chartered Accountants BIMal KhanDelWal
FRN: 106009W Chief Financial Officer
Name of subsidiary Ballarpur BILT Paper Ballarpur Premier avantha BILT sabah Ballarpur BILT
International B.V. (Formerly Paper Tissues agritech Graphic Forest speciality General
holdings known as holding India Limited Paper Industries Paper Trading
B.V. Ballarpur B.V. Limited (Formely Products sdn.Bhd. holdings (FZE)
International known Limited B.V.
Graphic Paper as BILT
holdings B.V.) Tree Tech
Limited)
Financial Year of the
subsidiary ended on 31.03.2017 31.03.2017 31.03.2017 31.03.2017 31.03.2017 31.03.2017 31.03.2017 31.03.2017 31.03.2017
reporting currency USD USD USD INR INR INR RM USD USD
- Exchange Rate- Balance
Sheet Items (Closing Rate) 64.88 64.88 64.88 1 1 1 14.67 64.88 64.88
- Exchange Rate- Profit &
Loss Items (Average Rate) 67.15 67.15 67.15 1 1 1 16.01 67.15 67.15
capital
- Equity Share Capital 73,204 5,418 70,536 562 108 55,005 179,082 13 27
- Preference Share Capital - - - - - - - - -
reserves (9,206) 432,418 216,626 1,116 (255) 22,466 (62,211) (270) 220
Total assets 174129 454,025 432,047 4,549 14,021 803,246 259,559 27 293
Total Liabilities 174129 454,025 432,047 4,549 14,021 803,246 259,559 27 293
Investment
(Except investment in
Subsidiaries)
- Government or Trust
Securities - - - - - - - - -
- Shares, Debentures or
Bonds - - - - - 3,305 - - -
Turnover (including Other
Income) - - - 5,430 6,596 176,879 11,016 - 5,035
Profit Before Taxation (7,743) 10,786 (4,544) 30 (656) (105,374) (25,408) (28) 228
Provision for Taxation
- Current Tax - - - - 18 - - - -
- MAT Entitlement Credit - - - - - - - - -
- Deferred Tax - - - 11 - (11,010) 17,287 - -
- Excess provision relating to
earlier years - - - - - - - - -
Profit after Taxation (7,743) 10,786 (4,544) 19 (674) (94,364) (42,696) (28) 228
Proposed Dividend - - - - - - - - -
share holding Percentage in
the subsidiary 100 62.21 (a) 100 (b) 100 91.67 100 (ç) 98.08 (ç) 100 100 (d)
Notes
a. Held through Ballarpur International Holdings B.V.
b. Held through BILT Paper B.V. (Formerly known as Ballarpur International Graphic Paper Holdings B.V.)
c. Held through Ballarpur Paper Holdings B.V.
d. Held through Ballarpur Speciality Paper Holdings B.V.
Financials 83
ANNUAL REPORT 2016-17
independent auditors’ report
To ThE MEMBERS of BALLARPUR INDUSTRIES LIMITED
Report on the Consolidated Ind AS financial Statements
We have audited the accompanying Consolidated Ind AS financial statements of Ballarpur Industries Limited (‘the Holding Company’) and
its subsidiaries ( the Holding Company and its subsidiaries together referred to as “the Group”), which comprise the consolidated balance
sheet as at 31st March 2017, the consolidated statement of profit and loss (including other comprehensive income), the consolidated cash
flow statement and the consolidated statement of changes in equity for the year then ended and a summary of the significant accounting
policies and other explanatory information (herein after referred to as “the consolidated Ind AS financial statements”).
Management’s Responsibility for the Consolidated Ind AS financial Statements
The Holding Company’s Board of Directors is responsible for the preparation of the consolidated Ind AS financial statements in terms of
the requirements of the Companies Act, 2013 (“the Act”) that give a true and fair view of the consolidated financial position, consolidated
financial performance including other comprehensive income, consolidated cash flows and consolidated changes in equity of the Group
in accordance with the accounting principles generally accepted in India, including the Indian Accounting Standards (Ind AS) prescribed
under Section 133 of the Act read with relevant rules issued thereunder. The Holding Company’s Board of Directors is also responsible
for ensuring accuracy of records including financial information considered necessary for the preparation of consolidated Ind AS financial
statements. The respective Board of Directors of the Companies included in the Group are responsible for maintenance of adequate
accounting records in accordance with the provisions of the Act for safeguarding of the assets of the Group and for preventing and detecting
frauds and other irregularities; the selection and application of appropriate accounting policies; making judgments and estimates that
are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls, that were operating
effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the
consolidated Ind AS financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or
error, which have been used for the purpose of preparation of the consolidated Ind AS financial statements by the Directors of the Holding
Company, as aforesaid.
Auditor’s Responsibility
Our responsibility is to express an opinion on these consolidated Ind AS financial statements based on our audit. While conducting the
audit, we have taken into account the provisions of the Act, the accounting and auditing standards and matters which are required to be
included in the audit report under the provisions of the Act and the Rules made thereunder.
We conducted our audit of the consolidated Ind AS financial statements in accordance with the Standards on Auditing specified under
Section 143(10) of the Act. Those Standards require that we comply with ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether the consolidated Ind AS financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and the disclosures in the consolidated Ind AS
financial statements. The procedures selected depend on the auditor’s judgement, including the assessment of the risks of material
misstatement of the consolidated Ind AS financial statements, whether due to fraud or error. In making those risk assessments, the
auditor considers internal financial control relevant to the Holding Company’s preparation of the consolidated Ind AS financial statements
that give a true and fair view in order to design audit procedures that are appropriate in the circumstances. An audit also includes
evaluating the appropriateness of the accounting policies used and the reasonableness of the accounting estimates made by the Holding
Company’s Board of Directors, as well as evaluating the overall presentation of the consolidated Ind AS financial statements.
We believe that the audit evidence obtained by us is sufficient and appropriate to provide a basis for our audit opinion on the consolidated
Ind AS financial statements.
asis for ualified pinion
We draw attention to Note 4 of the consolidated Ind AS financial statements regarding the liability for the put option on the roup
pertaining to subsidiaries to be provided on the settlement.
Qualified Opinion
In our opinion and to the best of our information and according to the explanations given to us, except for the effects of the matter
described in the Basis for Qualified Opinion paragraph above, the aforesaid consolidated Ind AS financial statements give the information
required by the Act in the manner so required and give a true and fair view in conformity with the accounting principles generally
accepted in India including the Ind AS, of the consolidated financial position of the Group as at 31 March, 2017, and its consolidated
financial performance including other comprehensive income, its consolidated cash flows and the changes in equity for the year ended
on that date.
mphasis of atter
We draw attention to Note 47 of the consolidated Ind AS financial Statement regarding invocation of Strategic Debt Restructuring by the
Lenders due to non-fulfillment of debt obligations. On the basis of projected business plan as agreed with the lenders, these financial
statements have been prepared on a going concern basis. These financial statements do not include any adjustments relating to the
recoverability and classification of recorded asset amounts and classification of liabilities that may be necessary if the roup is unable to
continue as going concern.
AShWIN MANKEShWAR
artner
Membership No. 046219
For and on behalf of
K. K. Mankeshwar & Co.,
Chartered Accountants
FRN: 106009W
Consolidated FinanCials 85
ANNUAL REPORT 2016-17
anneXure - a to tHe independent auditors’ report
Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section 143 of the Companies Act, 2013 (“the Act”)
In conjunction with our audit of the consolidated Ind AS financial statements of the Company as of and for the year ended 31 March 2017,
we have audited the internal financial controls over financial reporting of Ballarpur Industries Limited (“the Holding Company”) and its
subsidiary companies which are companies incorporated in India, as of that date.
The respective Board of Directors of the Holding Company and its subsidiary companies, which are companies incorporated in India,
are responsible for establishing and maintaining internal financial controls based on the internal control over financial reporting criteria
established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal
Financial Controls over Financial Reporting issued by the Institute of Chartered Accountants of India (“ICAI’). These responsibilities include
the design, implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the
orderly and efficient conduct of its business, including adherence to Company’s policies, the safeguarding of its assets, the prevention and
detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable financial
information, as required under the Act.
Auditors’ Responsibility
Our responsibility is to express an opinion on the Company's internal financial controls over financial reporting based on our audit. We
conducted our audit in accordance with the Guidance Note on Audit of Internal Financial Controls over Financial Reporting (the “Guidance
Note”) issued by the ICAI and the Standards on Auditing, issued by the ICAI and deemed to be prescribed under section 143(10) of the Act,
to the extent applicable to an audit of internal financial controls, both issued by the ICAI. Those Standards and the Guidance Note require
that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether adequate
internal financial controls over financial reporting was established and maintained and if such controls operated effectively in all material
respects.
Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls system over
financial reporting and their operating effectiveness. Our audit of internal financial controls over financial reporting included obtaining
an understanding of internal financial controls over financial reporting, assessing the risk that a material weakness exists, and testing and
evaluating the design and operating effectiveness of internal control based on the assessed risk. The procedures selected depend on the
auditors’ judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or
error.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the Company’s
internal financial controls system over financial reporting.
A Company's internal financial control over financial reporting is a process designed to provide reasonable assurance regarding the
reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted
accounting principles. A Company's internal financial control over financial reporting includes those policies and procedures that (1)
pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the
assets of the Company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial
statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the Company are being
made only in accordance with authorizations of management and directors of the Company; and (3) provide reasonable assurance
regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the Company's assets that could have a
material effect on the financial statements.
Because of the inherent limitations of internal financial controls over financial reporting, including the possibility of collusion or improper
management override of controls, material misstatements due to error or fraud may occur and not be detected. Also, projections of any
evaluation of the internal financial controls over financial reporting to future periods are subject to the risk that the internal financial
control over financial reporting may become inadequate because of changes in conditions, or that the degree of compliance with the
policies or procedures may deteriorate.
In our opinion, the Holding Company and its Subsidiary Companies, which are companies incorporated in India, have, in all material
respects, an adequate internal financial controls system over financial reporting and such internal financial controls over financial
reporting were operating effectively as at 31 March 2017, based on the internal control over financial reporting criteria established by the
Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls
Over Financial Reporting issued by the ICAI.
AShWIN MANKEShWAR
artner
Membership No. 046219
For and on behalf of
K. K. Mankeshwar & Co.,
Chartered Accountants
FRN: 106009W
Consolidated FinanCials 87
ANNUAL REPORT 2016-17
ConsoLidated BaLanCe sHeet AS AT MArch 31, 2017
` in Lacs
Note No. As at As at As at
31st March-2017 31st March-2016 1st April-2015
ASSETS
(1) Non-Current Assets
(a) Property, Plant and Equipment 5 955,799 1,026,266 1,037,159
(b) Capital work-in-progress 6 35,710 35,259 23,820
(c) Other intangible assets 7 6,581 7,854 6,339
(d) Intangible assets under development 8 3,144 4,300 192
(e) Biological assets other than bearer plants 9 68,257 70,472 74,243
(f) Financial Assets
(i) Investments 10 4,056 5,016 4,056
(ii) Others 11 5,044 5,302 4,695
(g) Other non-current assets 12 34,048 49,152 44,746
(2) Current Assets
(a) Inventories 13 68,093 153,952 143,006
(b) Financial Assets
(i) Trade receivables 14 7,060 36,588 35,223
(ii) Cash and cash equivalents 15 11,014 24,242 2,765
(iii) Bank balances other than (ii) above 16 1,284 979 21,309
(iv) Loans 17 59,645 43,398 13,693
(v) Others 18 2,647 6,072 7,181
(c) Current tax assets (Net) 19 806 634 781
(d) Other current assets 20 56,976 39,296 35,706
(e) Assets held for sale 2 16 13
Total Assets 1,320,166 1,508,798 1,454,927
As per our report of even date attached For Ballarpur Industries Limited
asHWin ManKesHWar r. r. VederaH
Partner Vice Chairman
Membership No. 046219
B. HariHaran
For and on behalf of
Group Director (Finance)
K. K. ManKesHWar & Co.
Chartered Accountants BiMaL KHandeLWaL
FRN: 106009W Chief Financial Officer
` in Lacs
NOTE NO. Year ended Year ended
31.03.2017 31.03.2016
As per our report of even date attached For Ballarpur Industries Limited
asHWin ManKesHWar r. r. VederaH
Partner Vice Chairman
Membership No. 046219
B. HariHaran
For and on behalf of
Group Director (Finance)
K. K. ManKesHWar & Co.
Chartered Accountants BiMaL KHandeLWaL
FRN: 106009W Chief Financial Officer
Consolidated FinanCials 89
ANNUAL REPORT 2016-17
ConsoLidated CasH FLoW stateMent
FOr ThE FINANcIAL
YEAr ENDED MArch 31, 2017
` in Lacs
31st March 2017 31st March 2016
Net Profit before tax, minority interest and appropriations (182,436) (28,515)
Adjustments for:
(Profit) / Loss on sale of Assets (net) (3,494) (2,802)
Unspent Liabilities and Excess Provisions of earlier years written back (91) (506)
Gain/(Loss) on changes in fair valuation of biological Assets (6,691) 6,511
Depreciation & amortisation expenses 39,139 40,794
Impairment of Assets 25,149 -
Inventory written off 380 -
Interest Received (84) -
Assets discarded - 5
Finance costs (net) 97,833 52,177
152,141 96,179
Operating Profit before working capital changes (30,295) 67,664
Adjustment for Working Capital Changes :
(Increase)/decrease in trade receivable 29,528 (93)
(Increase)/decrease in loans, advances and other currrent assets (15,513) (38,454)
(Increase)/decrease in inventory 80,707 (10,746)
Increase/(decrease) in liabilities and provisions (146,843) 6,302
(52,121) (42,991)
Cash generated from operations (82,416) 24,673
Income tax refund/(paid) 1,837 (1,645)
Net cash flow from operating activities (A) (80,579) 23,028
As per our report of even date attached For Ballarpur Industries Limited
asHWin ManKesHWar r. r. VederaH
Partner Vice Chairman
Membership No. 046219
B. HariHaran
For and on behalf of
Group Director (Finance)
K. K. ManKesHWar & Co.
Chartered Accountants BiMaL KHandeLWaL
FRN: 106009W Chief Financial Officer
Consolidated FinanCials
ANNUAL REPORT 2016-17
FRN: 106009W Chief Financial Officer
91
23rd May, 2017 Company Secretary
ConsoLidated notes to FinanCiaL stateMents
BALLArPUr INDUSTrIES LIMITED
1 cOMPANY OvErvIEw
Ballarpur Industries Limited (“BILT” or the company), a public limited company, together with its subsidiaries (collectively referred to
as the “Group”) is engaged in the business of manufacturing and selling of Paper, pulp and paper products. BILT’s consolidated paper
manufacturing operations span across six production units, five of which are in India and one in Malaysia. The Indian units are located
at Ballarpur (Maharastra), Bhigwan (Maharastra), Ashti (Maharastra) and Sewa (Orissa), Shree Gopal (Haryana). The Rayon Grade Pulp
manufacturing unit is located at Kamlapuram (Telangana). The Malaysian unit is located in the State of Sabah.
The Consolidated Ind AS financial statements were authorised for issue in accordance with a resolution of the directors on 23rd May, 2017.
2 BASIS OF PrEPArATION AND USE OF ESTIMATES
2.1 BASIS OF PrEPArATION OF cONSOLIDATED FINANcIAL STATEMENTS
The Consolidated Ind AS Financial statements (FS) of the company have been prepared in accordance with Indian Accounting Standards
(Ind AS) notified under the Companies (Indian Accounting Standards) Rules, 2015 (as amended) and presentation requirements of Division
II of Schedule III to the Companies Act, 2013, (Ind AS compliant Schedule III), as applicable to the Financial statements.
For all periods up to and including the year ended 31st March 2016, the Company prepared its consolidated Ind AS financial statements
in accordance with Indian GAAP, including accounting standards notified under the section 133 of the Companies Act 2013, read together
with paragraph 7 of the Companies (Accounts) Rules, 2014. These consolidated Ind AS financial statements for the year ended 31st March
2017 are the first the Company has prepared in accordance with Ind-AS.
The Company has consistently applied the accounting policies used in the preparation of its opening IND-AS Balance Sheet at April 1,
2015 throughout all periods presented, as if these policies had always been in effect and are covered by IND AS 101 ‘’First-time adoption
of Indian Accounting Standards’’. The transition was carried out from accounting principles generally accepted in India (‘’Indian GAAP’’)
which is considered as the previous GAAP, as defined in IND AS 101. The reconciliation of effects of the transition from Indian GAAP on
the equity as at April 1, 2015 and March 31, 2016 and on the net profit and cash flows for the year ended March 31, 2016 is disclosed in
Note no 50 to these financial statements.
The Consolidated Ind AS Financial statements have been prepared on a historical cost basis, except for the following assets and liabilities
which have been measured at fair value:
• Land and buildings classified as property, plant and equipment;
• Derivative financial instruments;
• Certain financial assets and liabilities measured at fair value (refer accounting policy regarding financial instruments).
The Consolidated Ind AS Financial Statements comprise of the following statements of Ballarpur Industries Limited (the company) for the
year ended 31st March, 2017 and its following Subsidiaries.
Consolidated FinanCials 93
ANNUAL REPORT 2016-17
ConsoLidated notes to FinanCiaL stateMents
It is believed that the useful lives as given above represents the period over which management expects to use these assets.
The gain or loss arising on the disposal or retirement of an item of property, plant and equipment is determined as the difference between
the sales proceeds and the carrying amount of the asset and is recognised in the Statement of Profit and Loss on the date of disposal or
retirement.
Capital work in progress includes cost of property, plant and equipment under installation / under development as at the balance sheet
date.
Intangible Asset under development includes cost of development of new intangible assets to complete the assets as at the balance sheet
date.
Capital Expenditure on tangible assets for research and development is classified under property, plant and equipment and is depreciated
on the same basis as other property plant and equipment.
3.4 INTANgIBLE ASSETS
Intangible assets that are acquired by the Company, which have finite useful lives, are measured at cost less accumulated amortization
and accumulated impairment losses (if any). Costs include expenditure that is directly attributable to the acquisition of the intangible
assets.
(i) Subsequent Expenditure
Subsequent expenditure is capitalized only when it increases the future economic benefits embodied in the specific asset to which
it relates. All other expenditure, including expenditure on internally generated goodwill and brands, are recognized in profit or loss
as incurred.
(ii) Amortization of intangible assets with finite useful lives
Amortization is recognized in profit or loss on a straight-line basis over the estimated useful lives of intangible assets from the date
that they are available for use. Expenditure on specialised software are amortised over seven years.
3.5 rESEArch & DEvELOPMENT cOST
Research costs are expensed as incurred. Development expenditures on an individual project are recognised as an intangible asset when
the Company can demonstrate:
• The technical feasibility of completing the intangible asset so that the asset will be available for use or sale;
• Its intention to complete and its ability and intention to use or sell the asset;
• there is an ability to use or sell the asset;
• How the asset will generate future economic benefits;
• adequate technical, financial and other resources to complete the asset
• The ability to measure reliably the expenditure during development;
Following initial recognition of the development expenditure as an asset, the asset is carried at cost less any accumulated amortisation
and accumulated impairment losses (if any). Amortisation of the asset begins when development is complete and the asset is available
for use. It is amortised over the period of expected future benefit. Amortisation expense is recognised in the statement of profit and loss.
During the period of development, the asset is tested for impairment annually.
3.6 IMPAIrMENT OF NON-FINANcIAL ASSETS
Assets that have an indefinite useful life, for example goodwill, are not subject to amortisation and are tested annually for impairment and
additionally whenever there is a triggering event for impairment. Assets that are subject to amortisation and depreciation are reviewed
for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. An impairment
loss is recognised for the amount by which the asset’s carrying amount of cash generating units exceeds its recoverable amount. The
recoverable amount of a cash generating unit is the higher of cash generating unit’s fair value less cost of disposal and its value in use.
3.7 INvENTOrIES
Inventories are valued at the lower of cost or net realisable value.
Costs incurred in bringing each product to its present location and condition is accounted for as follows:
• Raw materials, Stores, Spare Parts, Chemicals: are valued at cost, computed on weighted average basis.
• Finished goods and work in progress: are valued at cost or net realisable value, whichever is lower. In the case of finished goods
and work in process cost comprises of material, direct labour and applicable overhead expenses. The cost of finished goods also
includes applicable excise duty.
• Traded goods: cost includes cost of purchase and other costs incurred in bringing the inventories to their present location and
condition. Cost is determined on weighted average basis.
Net realisable value is the estimated selling price in the ordinary course of business, less estimated costs of completion and the estimated
costs necessary to make the sale.
3.8 FOrEIgN cUrrENcIES
The Company’s financial statements are presented in INR, which is functional currency of the Company. For each entity the Company
determines the functional currency and items included in the financial statements of each entity are measured using that functional
currency of the parent’s company. The Company uses the direct method of consolidation and on disposal of a foreign operation the gain
or loss that is reclassified to profit or loss reflects the amount that arises from using this method.
Transactions and balances
Transactions in foreign currencies are initially recorded by the Company’s entities at their respective functional currency spot rates at the
date the transaction first qualifies for recognition.
Consolidated FinanCials 95
ANNUAL REPORT 2016-17
ConsoLidated notes to FinanCiaL stateMents
FINANcIAL LIABILITIES
(i) Initial recognition and measurement:
All financial liabilities are recognised initially at fair value and, in the case of loans, borrowings and payables, net of directly
attributable transaction costs. Financial liabilities include trade and other payables, loans and borrowings including bank overdrafts
and derivative financial instruments.
(ii) classification & Subsequent measurement:
If a financial instrument that was previously recognised as a financial asset is measured at fair value through profit or loss and its
fair value decreases below zero, it is a financial liability measured in accordance with IND AS. Financial liabilities are classified as
held for trading, if they are incurred for the purpose of repurchasing in the near term. This category also includes derivative financial
instruments that are not designated as hedging instruments in hedge relationships as defined by Ind AS 109. Separated embedded
derivatives are also classified as held for trading unless they are designated as effective hedging instruments.
The company classifies all financial liabilities as subsequently measured at amortised cost, except for financial liabilities at fair
value through profit or loss. Such liabilities, including derivatives that are liabilities, shall be subsequently measured at fair value.
(iii) Loans and Borrowings:
Interest-bearing loans and borrowings are subsequently measured at amortised cost using the Effective Interest Rate (EIR) method.
Gains and losses are recognised in profit or loss when the liabilities are derecognised as well as through EIR amortisation process.
Amortised cost is calculated by taking into account any discount or premium on acquisition and fees or costs that are an integral
part of the EIR. The EIR amortisation is included as finance costs in the statement of profit and loss. After initial recognition Gain
and Liabilities held for Trading are recognised in statement of profit and Loss Account.
(iv) Derecognition of Financial Liabilities:
A financial liability is derecognised when the obligation under the liability is discharged or cancelled or expires. When an existing
financial liability is replaced by another from the same lender on substantially different terms, or the terms of an existing liability are
substantially modified, such an exchange or modification is treated as the derecognition of the original liability and the recognition
of a new liability. The difference in the respective carrying amounts is recognised in the Statement of Profit and Loss.
(v) Derivative Financial Instrument:
The Company uses derivative financial instruments, such as interest rate swaps, to hedge its interest rate risks. Such derivative
financial instruments are initially recognised at fair value on the date on which a derivative contract is entered into and are
subsequently remeasured at fair value. Derivatives are carried as financial assets when the fair value is positive and as financial
liabilities when the fair value is negative.
Offsetting financial instruments:
Financial assets and liabilities are offset and the net amount reported in the balance sheet when there is a legally enforceable right to
offset the recognised amounts and there is an intention to settle on a net basis to realise the asset and settle the liability simultaneously.
Subsequent recoveries of amounts previously written off are credited to Other Income.
3.10 cOMPOUND FINANcIAL INSTrUMENTS
The liability component of a compound financial instrument is recognised initially at fair value of a similar liability that does not have
an equity component. The equity component is recognised initially at the difference between the fair value of the compound financial
instrument as a whole and the fair value of the liability component. Any directly attributable transaction costs are allocated to the liability
and the equity components, if material, in proportion to their initial carrying amounts.
Subsequent to the initial recognition, the liability component of a compound financial instrument is measured at amortised cost using the
effective interest method. The equity component of a compound financial instrument is not re-measured subsequent to initial recognition
except on conversion or expiry.
3.11 cASh AND cASh EQUIvALENTS
Cash and cash equivalents in the balance sheet comprise cash on hand and at bank, deposits held at call with banks, other short-term
highly liquid investments with original maturities of three months or less that are readily convertible to a known amount of cash and are
subject to an insignificant risk of changes in value and are held for the purpose of meeting short-term cash commitments.
For the purpose of the statement of cash flows, cash and cash equivalents consist of cash and short-term deposits, as defined above, net
of outstanding bank overdrafts as they are considered an integral part of the Company’s cash management.
3.12 PrOvISIONS, cONTINgENT LIABILITIES, cONTINgENT ASSETS AND cOMMITMENTS
(i) general
Provisions are recognised when the Company has a present obligation (legal or constructive) as a result of a past event, it is
probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate
can be made of the amount of the obligation. If the effect of the time value of money is material, the amount of a provision shall be
the present value of expense expected to be required to settle the obligation Provisions are therefore discounted, when effect is
material, The discount rate shall be pre-tax rate that reflects current market assessment of time value of money and risk specific to
the liability. Unwinding of the discount is recognised in the Statement of Profit and Loss as a finance cost. Provisions are reviewed
at each balance sheet date and are adjusted to reflect the current best estimate.
(ii) contingencies
Contingent liabilities are disclosed when there is a possible obligation arising from past events, the existence of which will be
confirmed only by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the
Company or a present obligation that arises from past events where it is either not probable that an outflow of resources will be
Consolidated FinanCials 97
ANNUAL REPORT 2016-17
ConsoLidated notes to FinanCiaL stateMents
comprehensive income. Net interest expense/(income) on the net defined liability/(assets) is computed by applying the discount
rate, used to measure the net defined liability/(asset), the start of the financial year after taking into account any changes as a result
of contribution and benefit payments during the year. Net interest expense and other expenses related to defined benefit plans are
recognised in Statement of Profit and Loss.
(iii) Long-term employee benefits:
The Company’s net obligation in respect of long - term employee benefits is the amount of future benefit that employees have
earned in return for their service in the current and prior periods. That benefit is discounted to determine its present value.
Remeasurement is recognised in Statement of Profit and Loss in the period in which they arise.
(iv) Post - employment benefits - Defined contribution plans:
The Company’s contributions to defined contribution plans are charged to the income statement in the period to which they relate.
Once the contributions have been paid, the Company has no further payment obligations. Prepaid contributions are recognised as
an asset to the extent that a cash refund or a reduction in the future payments is available.
(v) Termination benefits
Termination benefits are employee benefits provided in exchange for the termination of an employee’s employment as a result of
either:
(a) an entity’s decision to terminate an employee’s employment before the normal retirement date; or
(b) an employee’s decision to accept an offer of benefits in exchange for the termination of employment.
3.17 LEASES
(i) Lease payments:
Payments made under operating leases are recognized in Statement of Profit and Loss. Lease incentives received are recognized
as an integral part of the total lease expense, over the term of the lease. Minimum lease payments made under finance leases are
apportioned between the finance expense and the reduction of the outstanding liability. The finance expense is allocated to each
period during the lease term so as to produce a constant periodic rate of interest on the remaining balance of the liability.
(ii) Lease assets:
A lease is an agreement whereby the lessor conveys to the lessee in return for a payment or series of payments the right to use an
asset for an agreed period of time.
A finance lease is a lease that transfers substantially all the risks and rewards incidental to ownership of an asset. Title may or may
not eventually be transferred. The leased assets are measured initially at an amount equal to the lower of their fair value and the
present value of the minimum lease payments. Subsequent to initial recognition, the assets are accounted for in accordance with
the accounting policy applicable to that asset.
3.18 gOvErNMENT grANTS
Government grants with a condition to purchase, construct or otherwise acquire long-term assets are initially measured based on grant
receivable under the scheme. Such grants are recognised in the Statement of Profit and Loss on a systematic basis over the useful life
of the asset. Amount of benefits receivable in excess of grant income accrued based on usage of the assets is accounted as Government
grant received in advance. Changes in estimates are recognised prospectively over the remaining life of the assets. Government revenue
grants relating to costs are deferred and recognised in the Statement of Profit and Loss over the period necessary to match them with
the costs that they are intended to compensate.
(i) Sales tax incentives
The Group receives the benefit of certain sales tax incentives under the Packaged Scheme Incentive of the Maharashtra Government
(the “Sales Tax Incentive Scheme”). The benefits under the Sales Tax Incentive Scheme are recognized when it is reasonable to
expect that the benefit will be received and that all related conditions will be met. The main benefits relevant to the Group are the
Sales Tax Deferment Scheme, the Sales Tax Exemption Scheme and the Sales Tax Refund Scheme.
(ii) Sales Tax Deferment Scheme
Under the Scheme, the Sales Tax amounts collected from sales to customers are deferred and repaid to the Government Authorities,
without interest, after a specified period. The benefit of sales tax deferral is recognized as an income in accordance with the Ind AS
20 Accounting for Governments Grants and Disclosure of Government Assistance. This deferred sales tax liability is measured in
accordance with Ind AS 109 Financial Instruments. The benefit of the interest free loan is measured as the difference between initial
carrying value of the loan at fair value in accordance with Ind AS 109 and the sales tax collected.
(iii) Sales Tax Exemption Scheme
The benefit of the sales tax exemption applies to qualifying sales to customers within the State of Maharashtra of paper produced
from one of the paper machine in Bhigwan. As per the scheme, the Group is exempt from levying and payment of sales tax on sales
of paper to customers that would otherwise be payable and hence no adjustment is made to revenue.
(iv) Sales Tax refund Scheme
The benefit of sales tax refund scheme applies to qualifying sales made from the State of Maharashtra in respect of assets of the
Group in Ballarpur and Bhigwan. Under the scheme, sales tax is levied and collected from the customer and claim for refund is filed
with the sales tax authorities. These benefits are accounted for Other income in the statement of Profit and loss.
Consolidated FinanCials 99
ANNUAL REPORT 2016-17
ConsoLidated notes to FinanCiaL stateMents AS AT MArch 31, 2017
100
5. PrOPErTY, PLANT AND EQUIAPMENT
` in Lacs
Particulars Leasehold Freehold Buildings Plant and Furniture vehicles Office computers railway Sidings, Total
land land Equipment and Equipments Trolley Lines,
Fixtures Tramway &tipping
tups
gross Block
` in Lacs
7. INTANgIBLE ASSETS
PArTIcULArS As at 31st March-2017 As at 31st March-2016
Product Others - Total Product Others - Total
Development computer Development computer
Expense Software Expense Software
Opening Net Carrying Value 5,522 2,332 7,854 3,893 2,446 6,339
Additions 1,156 - 1,156 2,482 12 2,494
Disposals - - - - - -
Amortization charge 1,483 946 2,429 993 126 1,119
Translation Reserve - - - 140 - 140
closing Net carrying value 5,195 1,386 6,581 5,522 2,332 7,854
` in Lacs
` in Lacs
13 INvENTOrIES
Particulars As at As at As at
31st March-2017 31st March-2016 1st April-2015
Raw materials 6,547 19,314 48,581
Work in progress 3,272 10,172 15166
Finished goods 5,980 22,065 26,819
Stores and spares 35,997 71,391 34,698
Block Stores 144 155 169
Chemicals 13,526 27,584 13,657
Packing material 2,627 3,271 3,916
68,093 153,952 143,006
13.1) Includes raw material-in-transit of ` 1 Lacs (Previous Year 2015-16 ` 5,917 Lacs, Previous Year 2014-15 ` 8,860 Lacs)
13.2) Includes stores & spares-in-transit of ` 424 Lacs (Previous Year 2015-16 ` 1,121 Lacs, Previous Year 2014-15 ` 1,870 Lacs)
13.3) Includes Chemicals-in-transit of ` 370 Lacs (Previous Year 2015-16 ` 1,109 Lacs, Previous Year 2014-15 ` 989 Lacs)
13.4) Includes packing material-in-transit of ` 11 Lacs (Previous Year 2015-16 ` 30 Lacs, Previous Year 2014-15 ` 77 Lacs)
14 TrADE rEcEIvABLES
Particulars As at As at As at
31st March-2017 31st March-2016 1st April-2015
Secured considered good:-
- Due from others (more than 6 months) 15 65 122
- Due from others (less than 6 months) 471 1,081 2,624
Total Secured 486 1,146 2,746
Unsecured considered good
- Due from related parties 3,788 5,152 5,124
- Due from others (more than 6 months) 1,006 1,102 831
- Due from others (less than 6 months) 1,780 29,187 26,522
Considered doubtful - - -
Less: Provision for doubtful debts - - -
Total Unsecured 6,574 35,442 32,477
Total Trade receivables 7,060 36,588 35,223
17 LOANS
Particulars As at As at As at
31st March-2017 31st March-2016 1st April-2015
Unsecured, considered good
(a) Loans to related parties 29,577 30,121 10,855
(b) Loans to others 30,068 13,277 2,838
Total 59,645 43,398 13,693
` in Lacs
` in Lacs
a) reconciliation of the number of shares :-
Particulars As at 31st March-2017 As at 31st March-2016 As at 1st April-2015
No. of Shares Amount No. of Shares Amount No. of Shares Amount
Balance as at the beginning of the 655,523,839 13,112 655,523,839 13,112 655,523,839 13,112
year
Add:- Issued during the Year - - - - - -
Balance as at the end of the year 655,523,839 13,112 655,523,839 13,112 655,523,839 13,112
c) Details of shares held by shareholders holding more than 5% of the aggregate shares in the company:
Name of shareholders As at 31st March-2017 As at 31st March-2016 As at 1st April-2015
No. of Shares holding % No. of Shares holding % No. of Shares holding %
a) Avantha Holdings Limited 322,689,019 49.23% 322,689,019 49.23% 322,689,019 49.23%
b) Life Insurance Corporation 43,872,365 6.69% 43,872,365 6.69% 44,134,423 6.73%
of India
c) Samera Special Situations 58,936,338 8.99% 59,480,544 9.07% 41,515,609 6.33%
Mauritius
d) Platinum Investment - - 35,282,244 5.38% 35,282,244 5.38%
Management Ltd. A/c Platinum
Asia Fund
e) Finquest Securities Private 35,458,000 5.41% - - - -
Limited
d) Terms of securities convertible into equity shares:
123 (March 31, 2016: 123) equity shares of ` 2/- each represent 41 underlying Global Depository Receipts.
22 BOrrOwINgS
Particulars As at As at As at
31st March-2017 31st March-2016 1st April-2015
Non-current Borrowings:
Secured Loan:-
a) Non convertible debentures 15,000 26,000 52,000
b) External commercial borrowings - 20,996 23,385
c) Term loan from :-
- Bank 294,964 302,984 173,712
- Financial Institutions 36,409 59,151 53,953
(d) Vehicle Loan - 0 1
Unsecured Loan:-
a) Loan from banks - - 14,620
b) ZCCB 3,714 3,792 9,402
c) Deferred payment liabilities 989 801 607
Total 351,076 413,724 327,680
current Borrowings:
Working capital loan 385,608 305,974 307,338
Total 385,608 305,974 307,338
a) In accordance with the Subcription and Participation Agreement signed between the Company, BILT and Avantha International
Assets B.V. (AIA) (earlier held by JP Morgan Special Situations Asia Corporation), the Company has issued Zero Coupon Convertible
bonds.
b) The Company had availed various secured financial facilities from the banks and financial institutions (“the Lenders”). The said
loans are secured by way of a first pari-passu charge over all moveable / immoveable assets of the company both present and
future.
c) All the Bank Borrowings except below are in Indian Currency i.e. foreign currency profile.
Bilt Graphic Paper Product Limited Term Loan RABO USD 25 12616
Ballarpur Paper Holdings (BPH) Term Loan ECL USD 5.4 4,365
Ballarpur International Holdings (BIH) Term Loan Credit Agricole USD 55 35,109
Ballarpur International Holdings (BIH) Term Loan JPM USD 24.5 14,899
Ballarpur International Holdings (BIH) Term Loan ICICI Bank USD 21.494 9,504
Ballarpur International Holdings (BIH) Term Loan IDBI Bank USD 20 12,787
d) The Company is required to maintain ratios (including total debt to EBITDA / net worth, EBITDA to gross interest, debt service
coverage ratio and secured coverage ratio) as mentioned in the loan agreements at specified levels. In the event of failure to meet
any of these ratios, these loans become callable at the option of lenders, except where exemption is provided by lender.
e) In the current financial year, due to delay in repayments of debts and payment of interest, the lenders of the company have invoked
standstill provision. As of March 31, 2017, the Company had breached the financial covenants set by its bankers for outstanding
term loans amounting to ` 83,593 Lacs. The details is as under:-
(` in Lacs)
Borrowing Particulars Default Upto 3 3 to 6 6 Months to Beyond
Outstanding Months Months 1 Year 1 Year
Amount
IDFC 1,923 961 962 - -
Clix Capital P. Ltd. formerly known as GE Money Financial 1,364 682 682 - -
Services Pvt. Ltd.
Clix Capital P. Ltd. formerly known as GE Money Financial 456 227 229 - -
Services Pvt. Ltd.
State Bank of India 1,620 810 810 - -
IDFC 654 444 210 - -
Action Global Private Limited 200 200 - - -
AXIS Bank Limited 5,000 2,500 2,500 - -
State Bank of Patiala 100 50 50 - -
RABO- ECB 3,604 1,802 1,802 - -
DBS- ECB 1,103 779 324 - -
Non Convertible Debenture 10,965 8,465 2,500 - -
Exim Bank 1,429 714 715 - -
State Bank Of Travancore 375 125 250 - -
The South Indian Bank 500 500 - - -
IDBI Bank 125 125 - - -
RABO Foreign Currency Loan 50 Million USD 4,866 - - 4,055 811
RABO Foreign Currency Loan 25 Million USD 6,488 - - 3,244 3,244
ICICI Bank Foreign Currency Loan 50 Million USD 19,464 15,247 2,271 1,946 -
ICICI Bank Foreign Currency Loan 25 Million USD 13,625 12,976 324 324 -
SCB Foreign Currency Loan 25 Million USD 4,866 3,244 - 1,622 -
SCB Foreign Currency Loan 20 Million USD 4,866 3,244 - 1,622 -
Total 83,593 53,095 13,629 12,814 4,055
The company is in discussions with banks to finalise & implement SDF / Other restructuring packages.
f) The maturity profile of the company's borrowing at the reporting date based on contractual undiscounted repayment obligation
(including current maturities) are as follows :-
` in Lacs
Year As at
31st March-2017
2017-18 Current 205,362
2018-19 97,020
2019-20 79,104
2020-21 75,630
2021-22 45,830
Non-Current
2022-23 31,314
2023-24 12,708
2024-25 9,278
2025-26 4,634
g) The term loans, working capital loans etc. are arranged at fixed & floating rates. The interest rates per annum are as follows:-
Particulars As at As at As at
31st March-2017 31st March-2016 1st April-2015
a) Non convertible debentures 9.75% to 11.75% 9.65% to 11.75% 9.35% to 9.90%
b) Term loan from :-
Bank 2.20% TO 13.75% 1.90% TO 13.75% 2.68% TO 13.75%
Financial Institutions 9.50% to 16.50% 10.76% to 12.75% 11.44% to 12.10%
c) Working capital loan 4.00% to 14.00% 4.00% to 13.50% 4.00% to 12.25%
The Company has opted for the deferral scheme of sales tax, which is payable as per the scheme framed by the State Government.
108
i) Loan from Bank/Financial Institutions :-
Sl. Name of Bank Sanctioned As on date Total current Non- Interest Security repayment terms
No. Amount Outstanding current rate
Amount
1 Exim Bank 15,000 31-Mar-17 9,222 4,286 4,936 Base Rate The Loan is secured by way of a first Term loan is repayable in 21 equal quarterly
31-Mar-16 10,690 3,571 7,119 + 1.50% pari-passu charge over all moveable installments starting from the end of 24
1-Apr-15 13,535 2,857 10,677 Initially fixed assets of the company both months from the date of first disbursement i.e.
present and future. 29th Oct, 2012. therefore, payment due date
Sl. Name of Bank Sanctioned As on date Total current Non- Interest Security repayment terms
No. Amount Outstanding current rate
Amount
11 Clix Capital P. Ltd. 15,000 31-Mar-17 7,499 4,091 3,408 Benchmark The loan is secured by way of first pari The loan is repayable in 22 equal quarterly
formerly known as 31-Mar-16 9,543 3,409 6,133 Rate + 2.70% passu charge over all Moveable Fixed installments starting from March 27, 2014 to
GE Money Financial 1-Apr-15 11,586 2,727 8,859 initially Assets of the Company. June 27, 2019.
Services P. Ltd.
12 State Bank of India 30,000 31-Mar-17 22,601 6,080 16,521 Base Rate + The loan is secured by way of first pari
The loan is repayable in quarterly Instalments
31-Mar-16 24,185 4,050 20,135 1.5% initially passu charge over all Moveable Fixed
starting from 30th June, 2014 to 30th June,
1-Apr-15 26,573 3,240 23,333 Assets of the Company. 2023.
13 IDFC Limited (Loan-2) 12,693 31-Mar-17 7,916 2,663 5,253 12.75% The loan is secured by way of first pari-
The repayment of loan is already started and
31-Mar-16 9,037 2,009 7,028 passu charge over all Moveable Fixed
the loan is divided into two parts, the final
1-Apr-15 10,579 1,775 8,803 Assets of the Company. repayment of loan 1 and loan 2 is 15th July,
2020 & 15th September, 2022.
14 Clix Capital P. Ltd. 5,000 31-Mar-17 3,863 1,364 2,500 Benchmark The Loan is secured by way of a first The loan is repayable in 22 equal quarterly
formerly known as 31-Mar-16 4,545 1,136 3,408 Rate + 2.70% pari-passu charge over all moveable installments starting from August 14, 2015 to
GE Money Financial 1-Apr-15 4,999 909 4,090 initially fixed assets of the company. November 13, 2020.
Services P. Ltd.
15 Axis Bank Limited 20,000 31-Mar-17 19,926 6,000 13,926 Base Rate The Loan is secured by way of a first The loan is repayable in 20 equal quarterly
31-Mar-16 19,892 2,000 17,892 + 1.35% pari-passu charge over all moveable installments starting from December 31, 2016
1-Apr-15 19,858 - 19,858 initially fixed assets of the company. to September 30, 2021.
16 Aditya Birla Finance 20,000 31-Mar-17 18,822 1,000 17,822 Asix Bank The loan is secured by way of first pari The loan is repayable in 31 Instalments starting
Limited 31-Mar-16 18,500 800 17,700 Base Rate passu charge on all Moveable Fixed from 30 Sept., 2015 to 31 Mar., 2023.
1-Apr-15 - - - + 1.65% Assets of the Company.
initially
17 State Bank of Patiala 5,000 31-Mar-17 4,770 300 4,470 Base Rate The loan is secured by way of first pari The loan is repayable in 31 Instalments starting
31-Mar-16 4,900 200 4,700 + 1.50% passu charge on all Moveable Fixed from 30 Sept., 2015 to 31 Mar., 2023.
1-Apr-15 - - - initially Assets of the Company.
18 Axis Bank Limited 100,000 31-Mar-17 78,763 13,917 64,846 Base Rate The loan is secured by way of first pari
The loan is repayable in 40 equal quarterly
31-Mar-16 62,895 7,628 55,266 + 1.65% passu charge on all Fixed Assets of the
Instalments starting from 23rd Dec., 2015 to
1-Apr-15 - - - initially Company. 29th Dec., 2025.
19 ICICI Bank Limited 32,500 31-Mar-17 31,833 1,625 30,208 Base Rate The loan is secured by way of first pari
The loan is repayable in 20 equal quarterly
31-Mar-16 31,646 - 31,646 + 2.60% passu charge on all Fixed Assets of the
Instalments starting from 30 Mar., 2018 to 30
1-Apr-15 - - - initially Company. Dec., 2022.
20 IDFC Limited (Loan-3) 2,500 31-Mar-17 2,500 2,500 - MCLR The Loan is secured by way of a first The loan is repayable in 12 equal quarterly
31-Mar-16 - - - + 3.60% pari-passu charge over all moveable Instalments starting by end of 15 month from
1-Apr-15 - - - initially fixed assets of the company. the date of first disbursement.
21 Yes Bank Limited 15,000 31-Mar-17 12,505 3,750 8,755 Base Rate The Loan is secured by way of a first The loan is repayable in 16 equal quarterly
31-Mar-16 - - - + 1.00% pari-passu charge over all moveable Instalments after the monotarium period of 1
1-Apr-15 - - - initiallly fixed assets of the company. year from the date of first disbursement..
22 ECL Finance Limited 15,000 31-Mar-17 15,000 15,000 - 16.50% The loan is repayable in 12 equal quarterly
31-Mar-16 - - - Instalments starting by end of 15 month from
1-Apr-15 - - - the date of agreement ie 08th March, 2017.
Consolidated FinanCials
ANNUAL REPORT 2016-17
23 Axis Bank Limited 31-Mar-17 - - - 11.15% The Loan is secured by way of a first N.A.
31-Mar-16 - 1,301 - pari-passu charge over all moveable
1-Apr-15 6,678 - 5,377 fixed assets of the company.
109
ConsoLidated notes to FinanCiaL stateMents AS AT MArch 31, 2017
110
Sl. Name of Bank Sanctioned As on date Total current Non- Interest Security repayment terms
No. Amount Outstanding current rate
Amount
24 HDFC Bank Limited 31-Mar-17 - - - 9.25% The Loan is secured by way of The loan is repayable in 60 monthly instalments
31-Mar-16 - 2 - hypothecation on vehicle. starting from December, 2010 to November,
1-Apr-15 2 - - 2015.
25 ECB (DBS) USD 20 31-Mar-17 12,652 12,652 - 2.7% + The Loan is secured by way of a first The loan is repayable in 8 semi annual
Million 31-Mar-16 12,920 1,126 11,794 LIBOR pari-passu charge over all moveable instalments from 07th February, 2016 to 07th
1-Apr-15 12,009 300 11,709 Initially fixed assets of the company. August, 2019.
Sl. Name of Bank Sanctioned As on date Total current Non- Interest Security repayment terms
No. Amount Outstanding current rate
Amount
34 ICICI Bank USD 25 31-Mar-17 13,590 13,590 - LIBOR + The loan is secured by way of first pari The loan is repayable by 24 unequal quarterly
Million 31-Mar-16 14,488 1,911 12,577 4.02% passu charge over the current assets, instalments commencing from January 31,
1-Apr-15 14,289 828 13,461 fixed assets, land and receivables of 2014.
Sabah Forest Industries Sdn. Bhd.
35 DBS Bank USD 15 31-Mar-17 8,759 - 8,759 Libor plus The loan is secured by way of first Any proceeds which are transferred or paid to
Million 31-Mar-16 - - - a margin of Preferential charge over shares of SFI. the Company by SFI (including any proceeds
1-Apr-15 - - - 3.25% from a disposal of all or any part of SFI’s assets
or business), in any manner whatsoever, shall
be applied in the following order:
i) First, in or towards discharging any fees
owing to the ECL, (ii) Second, any interest
payable in respect of the DBS BPH Credit
Agreement and (iii) third, the DBS BPH Credit
Agreement Liabilities and the Edelweiss Credit
Agreement Liabilities, pari passu and without
any preference between them, and (iv) fourth,
liabilities under the DBS BGPPL Guarantee.
36 ECL USD 5.4 31-Mar-17 4,365 - 4,365 13.00% The loan is secured by way of first The loan is repayable in 12 equal quarterly
Million 31-Mar-16 - - - Preferential charge over shares of Instalments starting by end of 15 month from
1-Apr-15 - - - Sabah Forest Industries Sdn. Bhd & the date of agreement 08th March, 2017 i.e. 8th
Ballarpur Paper Holdings B.V. June 18.
37 Standard Chartered 31-Mar-17 - - - Libor plus The loan is secured against pledge The loan is repayable at the end of three years
Bank 31-Mar-16 - - - a margin of of Ballarpur Paper Holdings B.V.'s from first utilisation date.
1-Apr-15 12,536 - 12,536 5.25% Shares.
38 CREDIT AGRICOLE USD 55 31-Mar-17 35,109 - 35,109 Libor plus The loan is secured by way of first The loan is repayable in 3 equal instalments
Million 31-Mar-16 35,671 - 35,671 a margin of Preferential charge over 21.50% starting from 48 months of agreement i.e.
1-Apr-15 44,522 - 44,522 4.80% of BILT Paper B.V. Shares owned january 2, 2015
by Ballarpur Industires Limited &
corporate guarantee of Ballarpur
Industries Limited.
39 JPM USD 24.5 31-Mar-17 14,899 - 14,899 Libor plus The loan is secured by way of SDLC The loan was drawn down on 13 July, 2015 and
Million 31-Mar-16 14,440 - 14,440 a margin of from Indusind Bank. is repayable after 36 months of utilisation.
1-Apr-15 - - - 1.50%
40 ICICI BANK LIMITED USD 21.494 31-Mar-17 9,504 - 9,504 Eurabics The loan is secured by way of SDLC The loan is repayable in three equal
Million 31-Mar-16 14,529 - 14,529 plus a from Indusind Bank. installments starting from third year of the
1-Apr-15 14,620 - 14,620 margin of utilization date.
2.50%
41 IDBI BANK USD 20 31-Mar-17 12,787 - 12,787 Libor plus The loan is secured by way of corporate The loan is repayable in three annual equal
Million 31-Mar-16 13,003 - 13,003 a margin of guarantee of holding company instalments starts at the end of 4th, 5th and
1-Apr-15 - - - 4.80% Ballarpur Industries Limited. 6th year from the date of first utilisation i.e.
starting from October 6, 2019.
Consolidated FinanCials
ANNUAL REPORT 2016-17
111
ConsoLidated notes to FinanCiaL stateMents AS AT MArch 31, 2017
112
Sl. Name of Bank Sanctioned As on date Total current Non- Interest Security repayment terms
No. Amount Outstanding current rate
Amount
42 YES Bank Limited 1,850 31-Mar-17 360 237 123 Base Rate + The loan is secured by exclusive The loan of ` 1650 Lacs is repayable by 20
31-Mar-16 753 372 381 2.85% charge on moveable fixed assets of the
quaterly instalment starting from July, 2011
1-Apr-15 935 374 562 company and immovable fixed assets and loan of ` 200 Lacs is repayable in 16
at Mysore. quaterly installments starting from the end of
moratorium period of 12 Month i.e. from Nov
2016.
` in Lacs
24 PrOvISIONS
Particulars As at As at As at
31st March-2017 31st March-2016 1st April-2015
Provisions for employee benefits :-
- Provision for gratuity 6,905 7,043 6,391
- Provision for leave encashment 2,120 1,882 1,386
9,025 8,925 7,777
27 TrADE PAYABLES
Particulars As at As at As at
31st March-2017 31st March-2016 1st April-2015
For Acceptances
- To micro,small and medium enterprises 893 942 297
- Payable to Related Parties 11,311 12,947 8,573
- Other payables 85,330 238,390 220,336
97,534 252,279 229,206
Micro and Small Enterprises under the Micro and Small Enterprises Development Act, 2006 have been determined based on the
information available with the Company and the required disclosures are given below:
Particulars As at As at As at
31st March-2017 31st March-2016 1st April-2015
Principal amount due & remaining unpaid 549 112 80
Interest due on above & the unpaid interest 78 10 1
Interest paid on all delayed payments under the MSMED Act - - -
Payment made beyond the appointed day during the year - 4 1
Interest due and payable for the period of delay 0 4 1
Interest accrued & remaining unpaid 78 10 1
Interest remaining due and payable even in succeeding years 0 - -
` in Lacs
30 PrOvISIONS
Particulars As at As at As at
31st March-2017 31st March-2016 1st April-2015
Provisions for employee benefits :
- Provision for gratuity 1,560 1,002 1,167
- Provision for leave encashment 583 439 498
Others provisions (Net of payment) (refer below note 30.1) 2,355 2,245 1,969
4,498 3,686 3,634
30.1 The Company is carrying provision for obligation as on Balance Sheet date, which may result in outflow of resources. The following is
the disclosure of such provisions covered under Ind AS 37.
As at Provision Provision As at
1st April-2015 During the Year Utilised/reversed 31st March-2016
During the Year
Anti dumping duty* 27 - - 27
Water Cess 1,881 391 120 2,152
Provision for Sales tax** 61 5 - 66
As at Provision Provision As at
1st April-2016 During the Year Utilised/reversed 31st March-2017
During the Year
Anti dumping duty* 27 - - 27
Water Cess 2,152 225 120 2,257
Provision for Sales tax** 66 5 - 71
* Represents provisions against anti dumping duty case for which appeal has been filed before CESTAT.
** Represents provisions against sales tax cases for which appeal has been filed before Punjab VAT Tribunal at Chandigarh.
` in Lacs
33 OThEr INcOME
Particulars Year ended Year ended
31.03.2017 31.03.2016
Profit on sale of PPE (Net) 3,494 2,802
Gain on foreign currency fluctuations 451 267
Rent and license fee 83 109
Unspent liabilities and excess provisions of earlier years written back 91 507
Interest Received on VAT refund 84 -
Other non operating income (net of expenses directly attributable to such income) 2,331 769
6,534 4,454
35 INcrEASE/(DEcrEASE) IN STOcK
Particulars Year ended Year ended
31.03.2017 31.03.2016
Stock at the beginning of the Year
Finished goods
Paper 22,008 26,422
Pulp 57 397
22,065 26,819
work in Progress
Paper 10,170 13,947
Pulp 2 1,219
10,172 15,166
Total (A) 32,237 41,985
Stocks at the end of the Year
Finished goods
Paper 5,980 22,008
Pulp - 57
5,980 22,065
` in Lacs
Particulars Year ended Year ended
31.03.2017 31.03.2016
work in Progress
Paper 3,272 10,170
Pulp - 2
3,272 10,172
Total (B) 9,252 32,237
Discontinued Operation (Ç) (43) 1,317
Increase /(Decrease) in Stocks(A-B-c) 23,028 8,431
37 FINANcE cOSTS
Particulars Year ended Year ended
31.03.2017 31.03.2016
Interest expenses 81,109 55,083
Other borrowing costs 7,218 650
Net loss / (gain) in foreign currency transaction and translation 4,841 6,434
Less: Interest earned (3,084) (16,250)
90,084 45,917
38 OThEr EXPENSES
Particulars Year ended Year ended
31.03.2017 31.03.2016
Consumption of stores and spare parts 3,542 6,613
Power and fuel 25,050 48,459
Excise duty on year end inventory of finished goods (819) (131)
Rent 2,928 2,246
Repairs to buildings 247 369
Repairs to machinery 2,787 3,253
Repairs others 552 604
Insurance 458 547
Rates and taxes 679 524
Other manufacturing expenses 404 1,199
Office & other expenses 6,806 1,593
Bank charges 145 69
CSR Expenses 79 290
Selling expenses 1,801 663
Bad Debts 589 -
Inventory written off 380 -
Assets discarded - 5
Carriage and freight 2,714 5,848
Detention & demmurage charges 3,480 -
` in Lacs
Particulars Year ended Year ended
31.03.2017 31.03.2016
Director sitting fees 89 114
*Legal and professional charges 2,109 1,383
Miscellaneous Expenses 7 -
54,027 73,648
*Legal & Professional Expenses includes Auditor Remuneration (Refer Note. 43(a)).
39 EXcEPTIONAL ITEMS
Particulars Year ended Year ended
31.03.2017 31.03.2016
Impairment of Assets 25,149 -
Penal Interest 5,481 -
Others - (31)
Total 30,630 (31)
Due to non-operation of unit at 'Kamlapuram', its plant was not serviced / maintained in satisfactory running condition , thereby requiring
impairment testing under Ind AS 36. The unit had appointed a registered valuer and based on his report an impairment loss amounting to
` 20,100 Lacs has been charged to Profit & Loss account under exceptional item. To arrive at the impairment amount,Valuer have adopted
Fair Market Value using CostApproach, applying relevant index and relevant reduction factors as the plant was not in operation for almost
36 months. Further, Company has also written off the inventory of ` 4,771 Lac and advance to suppliers of ` 278 Lac under exceptional
item of Kamlapuram Unit.
Assets are tested for impairment whenever there are any internal or external indicators of impairment.
Impairment test is performed at the level of each Cash Generating Unit (‘CGU’) or groups of CGUs within the Company at which the
goodwill or other assets are monitored for internal management purposes, within an operating segment.
The impairment assessment is based on higher of value in use and value from sale calculations.
The measurement of the cash generating units’ value in use is determined based on financial plans that have been used by management
for internal purposes. The planning horizon reflects the assumptions for short to- mid term market conditions.
Key assumptions used in value-in-use calculations:
- Operating margins (Earnings before interest and taxes)
- Discount rate
- Growth rates
- Capital expenditures
Operating margins: Operating margins have been estimated based on past experience after considering incremental revenue arising out
of adoption of valued added and data services from the existing and new customers, though these benefits are partially offset by decline
in tariffs in a hyper competitive scenario. argins will be positively impacted from the efficiencies and initiatives driven by the Company;
at the same time, factors like higher churn, increased cost of operations may impact the margins negatively.
Discount rate: Discount rate reflects the current market assessment of the risks specific to a CGU or group of CGUs. The discount rate
is estimated based on the weighted average cost of capital for respective CGU or group of CGUs.
growth rates: The growth rates used are in line with the long term average growth rates of the respective industry and country in which
the Company operates and are consistent with the forecasts included in the industry reports.
capital expenditures: The cash flow forecasts of capital expenditure are based on past experience coupled with additional capital
expenditure required.
40 Financial Instruments
The Company monitors capital using gearing ratio, which is capital divided by net debt.
` in Lacs
Particulars As at As at
31st March-2017 31st March-2016
Loans and borrowings 983,463 815,832
Less: cash and cash equivalents 11,014 24,242
Net debt 972,449 791,590
Total capital 119,302 285,185
Capital and net debt 1,091,751 1,076,775
Gearing ratio 0.12 0.36
The following table demonstrates the sensitivity in the USD, Euro, GBP, JPY and other currencies to the Indian Rupee with
all other variables held constant. The impact on the Company’s profit before tax and other comprehensive income due to
changes in the fair value of monetary assets and liabilities is given in respect to A 50 basis point increase or decrease is used
when reporting interest rate risk internally to key management personnel and represents management's assessment of the
reasonably possible change in interest rates.
Particulars As at As at
31st March-2017 31st March-2016
United States Dollar 9,091 9,696
Euro (28) (28)
GBP (1) (1)
Japenese Yen (2) (2)
Malaysian Ringgit (3,567) (3,259)
The assumed movement in exchange rate sensitivity analysis is based on the currently observable market environment.
Summary of exchange difference accounted in Statement of Profit and Loss:
Trade receivables
The Company extends credit to customers in normal course of business based upon careful evaluation of the customer's
financial condition and credit history. Outstanding customer receivables are regularly monitored. The ageing of trade
receivable is as below:
` in Lacs
Particulars Past due Total
upto more than 6
6 months months
Trade receivables
As at March 31, 2017
Secured 471 15 486
Unsecured 5,568 1,006 6,574
gross Total 6,039 1,021 7,060
Provision for doubtful receivables - - -
Net Total 6,039 1,021 7,060
As at March 31, 2016
Secured 1,081 65 1,146
Unsecured 34,339 1,103 35,442
Total 35,420 1,168 36,588
Provision for doubtful receivables - - -
Net Total 35,420 1,168 36,588
` in Lacs
Particulars YEAr PAPEr PAPEr PULP OThErS TOTAL
AND PAPEr
PrODUcTS
Other Information
Segmental Assets 2016-17 1,203,356 37,256 31,044 - 1,271,656
2015-16 1,328,667 53,794 54,556 - 1,437,017
Unallocated Corporate assets 2016-17 48,510
2015-16 71,781
Total Assets 2016-17 1,320,166
2015-16 1,508,798
Segmental Liabilities 2016-17 183,937 6,724 6,554 - 197,215
2015-16 284,727 12,710 4,166 - 301,603
Unallocated Corporate Liabilities 2016-17 1,025
2015-16 9,734
Total Liabilities 2016-17 198,240
2015-16 311,337
Capital Expenditure during the period 2016-17 13,772
(Including Movements in CWIP & Capital
2015-16 59,431
Advances)
Depreciation 2016-17 24,970
2015-16 25,361
Amortisation 2016-17 2,429
2015-16 1,119
Total Liabilities Excludes Deferred Payment
Liabilities
Long Term Borrowings 2016-17 350,087
2015-16 412,923
Short Term Borrowings 2016-17 385,608
2015-16 305,974
Current Maturities of Long Term Debts 2016-17 205,362
2015-16 86,586
Deferred tax liabilities (Net) 2016-17 13,306
2015-16 8,536
Minority Interest 2016-17 48,262
2015-16 98,256
Net assets/liabilities directly associated with 2016-17 116,871
discontinue operations
2015-16 180,473
As per Ind AS-19 "Employee Benefits", the disclosure of employee benefits as defined in the accounting standard are given below:
Defined contribution Plan*
contribution to defined contribution Plan is recognized and charged off for the year, are as under :
` in Lacs
Defined contribution Plan: Year Ended Year Ended
31.03.2017 31.03.2016
Particulars 2017 2016
Employer’s contribution to provident fund 572 585
Employer’s contribution to superannuation fund 25 32
Employer’s contribution to pension scheme 648 641
* Includes charged to other accounts
Defined Benefit Plan
a) gratuity
In accordance with applicable Indian laws, the Company provides for gratuity, a defined benefit plan, covering eligible employees.
This Plan provides for a lump sum payment to vested employees on retirement, death, incapacity or termination of employment
of amounts that are based on salary and tenure of employment. Liability with regard to this plan are determined by actuarial
valuation.
b) Leave Encashment
The Company permits encashment of leave accumulated by their employees on retirement, separation and during the course
of service. The liability for encashment of leave is determined and provided on the basis of actuarial valuation performed by an
independent actuary at each balance sheet date. This Plan is completely un-fuded
c) reconciliation of opening and closing balances of the present value of the defined benefit obligations
` in Lacs
Defined Benefit Plan: 2016-17 2015-16
Particulars gratuity gratuity Leave gratuity gratuity Leave
Encashment Encashment
(Funded) (Unfunded) (Unfunded) (Funded) (Unfunded) (Unfunded)
Present value of obilgation as at the 675 7,567 3,083 606 7,156 1,884
beginning of the period
Current service cost 49 380 191 100 489 461
Interest Expense or cost 52 582 136 97 655 468
Acquisition - - - - - -
Re-Measurement (or Actuarial) - - - - - -
(gain) / (loss) arising from:
- change in demographic assumptions 18 0 0 1 (10) 5
- change in financial assumptions 30 189 75 3 124 29
- experience variance (i.e. Actual (27) 81 (238) (104) (331) (480)
experience vs assumptions)
- others - - - - - -
Past service cost - - 9 - - -
Effect of change in foreign exchange - - - - - -
rates
Benefits paid (27) (882) (553) (28) (516) (46)
Effects of business combinations or - - - - - -
disposals
Exchange differences - - - - - -
Present value of obligation as at the 770 7,918 2,703 675 7,567 2,321
end of the period
Note: There is difference in closing balance of 2015-16 and opening balance of 2016-17 in leave encashment as the basisi for
the same has been changed from basic salary to CTC.
d) reconciliation of opening and closing balances of the present value of the defined benefit obligations
` in Lacs
Plan Asset: 2016-17 2015-16
Particulars gratuity gratuity Leave gratuity gratuity Leave
Encashment Encashment
(Funded) (Unfunded) (Unfunded) (Funded) (Unfunded) (Unfunded)
Fair value of plan assets as at the 197 - - 205 - -
beginning of the period
Investment Income 15 - - 16 - -
Contributions/Effects of business 38 99 90 4 56 26
combinations or disposals
Benefits Paid (26) (99) (90) (26) (56) (26)
Return on plan assets, excluding (1) - - (2) - -
amount recognised in net interest
expense
Effect of change in foreign exchange - - - - - -
rates
Fair value of plan assets as at the 223 - - 197 - -
end of the period
` in Lacs
Particulars 2016-17 2015-16
gratuity gratuity Leave gratuity gratuity Leave
Encashment Encashment
(Funded) (Unfunded) (Unfunded) (Funded) (Unfunded) (Unfunded)
Re-measurement (or acturial) (gain)/ 20 - (10) (0) - (27)
(loss) arising because of change in
effect assets ceiIing
components of defined benefit 39 271 (173) (101) (217) (472)
costs recognised in other
comprehensive income
g) Balance Sheet Obligations
` in Lacs
2015-16
Particulars changes in PAID LEAvE grat. On roll grat. On contractor
Assumption Changes in % Impact on % Impact on % Impact % Impact on % Impact on % Impact on
Assumption defined benefit defined benefit on defined defined benefit defined benefit defined benefit
obligation due obligation due benefit obligation due obligation due obligation due
to increase in to Decrease in obligation due to Decrease in to increase in to Decrease in
assumption assumption to increase in assumption assumption assumption
assumption
Discount rate 1% 1% -3% 4% -4% 4% -2% 3%
Salary growth 1% 1% 4% -3% 4% -3% 3% -2%
rate
Attrition Rate 1% 1% 1% -1% 1% -1% 1% -1%
Mortality rate 1% 1% 0% 0% 0% 0% 0% 0%
k) Maturity Profile of defined benefit obligation (weighted Average)
43 OThEr DIScLOSUrES
` In Lacs
Particulars Year ended Year ended
31.03.2017 31.03.2016
a) Auditors remunearation
Statutory Auditors
i. Audit Fee (including Cost Audit Fees) 136 130
ii. Tax Audit Fee 21 22
iii. Certification Fees 20 -
iv. Other capacity (management services) 143 70
v. Reimbursement of Expenses 4 5
Total 324 227
` in Lacs
45. Details of Specified Bank Notes held and transacted during the period from 8th November, 2016 to 30th December, 2016 as required
under McA Notification g.S.r. 308(E) Dated March, 31, 2017:
` in Lacs
Particulars Specified Other Total
Bank Notes Denomination
Notes
Closing Cash in Hand as on 08-11-2016 12.40 3.54 15.94
Add: Permitted Receipts - 42.94 42.94
Less: Permitted Payments 0.02 35.68 35.70
Less: Amount deposited in Banks 12.38 - 12.38
closing cash in hand as on 30-12-2016 - 10.81 10.81
* For the purposes of this clause, the term ‘Specified Bank Notes’ shall have the same meaning provided in the notification of the
Government of India, in the Ministry of Finance, Department of Economic Affairs number S.O. 3407(E), dated the 8th November, 2016.
46. The liability of the put option of subsidiaries, if any shall be determined and provided on settlement in view of on-going discussions with
banks.
47. The results of the company for the current year have been impacted due to lack of adequate working capital. The lenders of the company
have invoked standstill provision due to delays in repayment of debts & payment of interest. The company is in discussions with banks to
finalise & implement SDR/Other restructuring packeges.
The following is a reconciliation of the equity shares used in the computation of basic and diluted earnings per equity share:
(Number of shares)
Particulars Year Ended Year Ended
March 31, 2017 March 31, 2016
Issued equity shares 655,523,839 655,523,839
Weighted average shares outstanding - Basic and Diluted - (A) 655,523,839 655,523,839
Net profit available to equity holders of the Company used in the basic and diluted earnings per share was determined as follows :-
In accordance with the requirements of IND AS 24, on related party disclosures, name of the related party, related party relationships,
transactions and outstanding balances including commitments where control exits and with whom transactions have taken place
during reported year are:
a) Name of the related Parties with whom Transactions were carried ot during the year and nature of relationship:
(1) Key Management Personnel
Mr. Gautam Thapar
Mr. B Hariharan
(2) Other related Parties *
*Companies over which persons(s) having direct/indirect control or significant control influence over the company is able to
exercise significant influence
Arizona Printers & Packers Private Limited
Avantha Holdings Limited
Avantha Power & Infrastructure Limited
Avantha Realty Limited
BILT Industrial Packaging Company Limited
Biltech Building Elements Limited
CG Power and Industrial Solutions Limited (Formerly Crompton Greaves Limited, Name change w.e.f. 27-02-2017)
Global Green Company Limited
Imerys NewQuest(India) Pivate Limited
Jhabua Power Limited
Korba West Power Company Limited
Krebs & Cie (India) Limited
Leading Line Merchant Traders (P) Limited
Avantha Business Solutions Limited (Formerly known as Salient Business Solutions Limited)
Mirabelle Trading Pte. Limited
Prestige Wines and Spirits (P) Ltd.
Avantha International Assets B.V.
Avantha International Holding B.V.
Saraswati Travels (P) Limited
` in Lacs
S. Particulars Year ended Year ended
No. 31.03.2017 31.3.2016
a) Sale of goods, rent received & allocation of common expenses for rendering
corporate service:
- Other Related Party 1,446 4,104
b) Purchase of goods & Services, rent and commission/royalty:
- Other Related Party 7,022 34,624
c) Advances given during the year
- Other Related Party 5,239 5,863
d) Advances received back during the year
- Other Related Party 3,587 673
e) remuneration (net of recovery) :
- Key management Personnel 1 777
f) royalty Paid/Payable
- Other Related Party - 65
g) Outstanding Balances at the end of the year
- Key management Personnel 5 16
- Other Related Party 22,054 22,327
50 Transition to IND AS
Basis of preparation
For all period up to and including the year ended March 31, 2016, the Company has prepared its financial statements in accordance with
generally accepted accounting principles in India (Indian GAAP). These financial statements for the year ended March 31, 2017 are the
Company’s first annual IND AS financial statements and have been prepared in accordance with IND AS.
Accordingly, the Company has prepared financial statements which comply with IND AS applicable for periods beginning on or after
April 1, 2015 as described in the accounting policies. In preparing these financial statements, the Company’s opening Balance Sheet
was prepared as at April 1, 2015 the Company’s date of transition to IND AS. This note explains the principal adjustments made by the
Company in restating its Indian GAAP Balance Sheet as at April 1, 2015 and its previously published Indian GAAP financial statements for
the year ended March 31, 2016.
Exemptions
Ind AS 101 allows first-time adopters certain exemptions from the retrospective application of certain requirements under Ind AS. The
Company has applied the following exemptions:
• to measure an item of property, plant and equipment at the date of transition to Ind AS at its fair value and use that fair value as its
deemed cost at that date.
• to apply previous GAAP carrying amount of its investment in Subsidiaries, Associates and Joint enture as deemed cost as on the
date of transition to Ind AS.
• continue the policy adopted for accounting for exchange differences arising from translation of long-term foreign currency monetary
items recognised in the financial statements for the period ending immediately before the beginning of the first Ind AS financial
reporting period as per the previous GAAP.
Exceptions
The following mandatory exceptions have been applied in accordance with Ind AS 101 in preparing the financial statements.
(a) Estimates
The estimates at 1st April 2015 and 31st March 2016 are consistent with those made for the same dates in accordance with India
GAAP (after adjustments to reflect any difference if any, in accounting policies) apart from the following items where application of
Indian GAAP did not require estimation:
• Impairment of financial assets are based on expected credit loss model
The estimates used by the Company to present these amounts in accordance with Ind AS reflect conditions as at the transition
date and as of 31st March 2016.
(b) Derecognition of financial assets and financial liabilities
The company has elected to apply the derecognition requirements for financial assets and financial liabilities in Ind AS 109
prospectively for transactions occurring on or after the date of transition of Ind AS.
(c) classification and measurement of financial assets
The Company has classified the financial assets in accordance with Ind AS 109 on the basis of facts and circumstances that exist at
the date of transition to Ind AS.
The following reconciliations and explanatory notes thereto describe the effects of the transition on the Ind AS Opening statement
of financial position as at April 1, 2015. All explanations should be read in conjunction with the accounting policies of the company
as disclosed in the Notes to the Accounts.
(` in Lacs)
Particulars Note No. 1-April-15 31-March-16
Other Equity as per Previous gAAP 307,085 263,523
Adjustments to other equity
Fair valuation of Assets, Financial Assets & Financial Liabilities (III) a 6,504 5,378
Fair valuation of Biological Assets (III) b 27,406 20,996
Impact of effective interest rate on borrowings (III) c (18,361) (15,049)
Proposed dividend (including Corporate Dividend Tax) (III) d 1,578 -
Incremental Depreciation due to fair valuation - 427
Unwinding of Discount related to deferred sales tax liability - (70)
Deferred tax liabilities (327) (629)
Reclassification of acturial gain / losses, arising in respect of (414) (1,203)
employee benefit schemes, to Other Comprehensive Income (OCI)
Other Adjsutmernts (2,063) (1,300)
Other Equity as per Ind AS 321,408 272,073
II. The following reconciliations and explanatory notes thereto describe the effects of the transition on the Ind AS on Statement of
Profit and Loss for the year ended March 31, 2016. All explanations should be read in conjunction with the accounting policies of the
company as disclosed in the Notes to the Accounts.
(` in Lacs)
Particulars 2015-16
Profit / (Loss) as per Previous GAAP (22,941)
Adjustments
a. Fair valuation of Biological Assets (III) b (6,410)
b. Amortisation of Transaction costs using Effective Interest Rate (III) c 4,059
Method
c. Impact on Depreciation due to fair valuation 427
d. Unwinding of discount related to liabilities (70)
e. Deferred tax liablities (net) (629)
f. Reclassification of acturial gain / losses, arising in respect of (789)
employee benefit schemes, to Other Comprehensive Income (OCI)
g. Other Adjustments (1,574)
Total adjustments (4,986)
Profit / (Loss) as per Ind AS (27,927)
III. Notes to the reconciliation
a. The Company has as at the date of transition elected to measure Plant and Equipments under Property, Plant and equipment
at fair value as deemed cost.
On adoption of Ind-AS, the Company undertook a detailed evaluation of its financial assets & financial liabilities as at the date
of transition i.e. April 1, 2015. These assets & liabilities were assessed for future economic benefits expected to flow to the
Company or collection in accordance with Ind-AS 109. Ind- AS 109 requires measurement of provision for bad and doubtful
debts to be determined with reference to the expected credit loss model. Such assets , based on evaluation, have been
measured at the present value discounted at effective interest rate and adjusted to other reserve as at transition date.
b. nder Previous GAAP, the Company recognised iological assets at cost; however, Ind AS requires the company to recognise
the Biological asses at fair value and the changes in fair valuation of Biological assets are recognised in Statement of Profit
and Loss.
c. Under Previous GAAP, Costs incurred in raising funds are amortised over the period for which the funds have been obtained,
using time proportionate basis. However, as per Ind AS, the transaction costs are accounted using Effective Interest Rate
Method.
d. Under Previous GAAP, proposed dividend including dividend distribution tax (DDT), are recognised as liability in the period to
which they relate, irrespective of when they are declared. Under Ind AS, proposed dividend is recognised as a liability in the
period in which it is declared by the Company, usually when approved by shareholders in the general meeting, or paid.
51 DIScONTINUED OPErATIONS
As per our report of even date attached For Ballarpur Industries Limited
asHWin ManKesHWar r. r. VederaH
Partner Vice Chairman
Membership No. 046219
B. HariHaran
For and on behalf of
Group Director (Finance)
K. K. ManKesHWar & Co.
Chartered Accountants BiMaL KHandeLWaL
FRN: 106009W Chief Financial Officer