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Yash Papers Limited Annual report, 2009-10

in fond memory
A tribute to our founder member Mr. K. K. Jhunjhunwala, whose vision remains our guiding light.

Corporate information
Board of Directors
Mr. G. Narayana, Chairman Mr. Ved Krishna, Managing Director Mr. R. N. Chakraborty, Executive Director Mrs. Manjula Jhunjhunwala, Director Mr. G. N. Gupta, Director Dr. P. Banerjee, Director Mr. Yash Krishna, Director Mr. Basant Kumar Khaitan, Director Mr. Ramesh Narayan, Director Mr. K. D. Pudumjee, Director

Works and corporate office
Yash Nagar, Faizabad – 224135, Uttar Pradesh Phone: 05278 326611-14 Fax No: 05278- 258062 Website: Email: Corporate identity Milestones From the desk of the Chairman Managing Director's review Strengths Management Discussion and Analysis Ten-year financial summary Our operations Directors' Report Corporate Governance Report Auditor's Report Balance sheet Profit and loss account Schedules Cash flow statement Notice

State Bank of India United Bank of India Oriental Bank of Commerce Union Bank of India UCO Bank

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Registrar and Share Transfer Agent
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Registered office
47/81, Hatia Bazar, Kanpur – 208001

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One of the earliest to use AC variable frequency drives on re-winders and paper machines. Our products are distributed through a national network comprising 37 dealers. hat we do. Presence Our manufacturing plant is located in the Faizabad district of Uttar Pradesh. foil lamination and wax coating are other uses for the MG poster grades Manufacture of coloured like orange grades (48-80 GSM) which are used in envelopes and book covers: golden shade (32-40 GSM) is used in envelope and wrapping grades Bleached and unbleached pulp to different paper mills Innovations One of the first Indian paper manufacturers to invest in captive cogeneration. matchboxes. total capacity: 130 TPD Two power plants. manufacturing low grammage MG industrial bleached and unbleached grades. Both with extraction-cum-condensing turbines and rice husk-based FBC boilers A chemical recovery plant with capacity of 145 MT BD Solids Products Manufacture of unbleached kraft paper including different wrapping grades (30-60 GSM) used in interleaving. gum tape. food packaging. tea. One of the earliest paper mills with a CDMregistered project. among other uses. one of India’s largest wheat producers. exports are being made to more than 20 countries. chromo and metallised grades. One of the few to use rice husk as fuel and agro-residues as raw material. Grammage range extends from 28 GSM to 80 GSM. book covers. Developed numerous paper grades. detergents. These grades are also used as base paper for thermal. gift wrap. The smallest unit in the world with a conventional chemical recovery system. one with an output of 2. Packaging. cigarette inner liners. Listed on Bombay Stock Exchange Limited.hat we are. bag and stationery 2 | Yash Papers Limited . brassware. PE coating. Equipment Three paper machines. sugar and salt sachets. wax coating.100 MTPA An integrated pulp mill produces bleached and unbleached pulp grades from agro-based raw material. facilitating the easy procurement of wheat straw (primary raw material). grocery bags. metallised paper and other stationery materials Manufacture of Bleached MG poster paper (30-80 GSM) used in the pharmaceutical industry and FMCG industry with usage in soaps. grades (60-80 GSM) are used in the manufacture of envelopes. among others. tubelight packaging. hat we stand for. bangles and glassware. Total production capacity of 39.5 MW and the other with an output of 6 MW. tobacco pouches. PE coating. Mumbai. bituminisation. bidi wrapping.

K.000 MTPA 2007 Installed Paper Machine III with installed capacity of 23.ilestones 1981 Established by promoter Mr.100 tons per annum) Implemented Quality Control Systems to stabilise product quality Annual report 2009-10 | 3 . K. Jhunjhunwala 1983 Set up Paper Machine I with an installed capacity of 1.5-MW Power plant with an Extraction-cumCondensing Turbine Enhanced Paper Machine II capacity to 16.940 MT per annum Commenced production of low grammage kraft grades Created additional capacity of about 2. reinvesting in additional capacity CII conducted an Energy Audit to optimise energy consumption Implemented TPM to enhance productivity and efficiency Emerged the largest manufacturer of wrapping paper grades in brown and white varieties (installed capacity 39.000 MTPA Continued to address the low grammage kraft segment 1995 Set up a 2.100 MTPA Entered the market of bleached MG grades Commissioned integrated infrastructure comprising state-of-the-art 130-tpd pulping stream Set up a 6-MW Power Plant and Chemical Recovery Unit of capacity 145 TPD 2009 Focused on specialty products and quality.000 MTPA 1991 Setup Paper Machine II with installed capacity of 10.

We also expect to enter into joint ventures for the manufacture of highgrade products. low penetration. increased product availability and wider distribution. For instance. Besides. Yash Papers expects to capitalise on this reality through quality upgradation on the one hand and the development of new products to the growing needs of these sectors. increasing affordability. favorable demographics. Narayana.From the desk of the Chairman THE INDIAN ECONOMY GREW BY 7. I am confident that these initiatives will help us reinforce our presence and profitably in a sustained manner over the coming years. The Company is attractively placed in this regard: our integrated facilities serve as an edge over competitors.4% in the fiscal year 2009-10 and this scenario presents an exciting opportunity for a company like ours since paper is an essential commodity and rides national GDP growth. our integrated pulping facilities produce products of a consistently high quality. influenced by retail and FMCG trends. asset utilisation and revenue growth. G. Chairman 4 | Yash Papers Limited . Sincerely. enjoying premium realisations and leading to higher profits. leveraging on our strengths to grow laterally in the power and plantation segments. Yash Papers Limited is a niche market player as most of its products are in the wrapping segment. These sectors are on an upswing marked by rising income levels. our ability to customise products according to customer specific needs has translated into superior and timely innovation. we aspire to grow in the speciality paper segment as it is a high value-added segment. Yash Papers expects to strengthen its business through the following initiatives in 2010-11: Develop higher value grades of paper Supply excess power to UPPCL Increase sales realisations across all varieties by targeting higher value segments Reduce dependence on purchased pulp by setting up a captive wood fibre line Enhance the sale of unused pulp Enhance productivity in PM3 In the coming years.

Managing Director’s review “ e expect to sustain this turnaround through better profits during the current financial year. We expect to sustain this turnaround through better profits during the current financial year.85% in 2008-09 to 51. depressing our bottomline.94 lacs as against net losses in the previous two years. commitment and innovation which was reflected through the following initiatives: Customised: We worked even closer with customers to offer customised products and strengthen our quality. wrapping bags.” Ved Krishna reviews the Company’s working in 2009-10 How would you describe the Company’s performance in 2009-10? The financial year under review was challenging but due to the commitment of the Yash Papers team. PM 3: The capacity utilisation of our Paper Machine 3 declined from 61. 10 cr on our book debt of Rs.17% due to the MG cylinder coating and grinding which warranted machine shutdown for 45 days. tobacco packaging What challenges did the Company face during the turnaround in 2009-10? The Yash Papers management Annual report 2009-10 | 5 . automobile wrapping. VCI coated anti-rust papers. we succeeded in getting into the black with a post-tax profit of Rs. 7. on account of increased demand and a delay in the monsoons. especially wheat straw. Our interest accounted for 59. If one studies the performance of the Company across the five successive quarters (starting the first quarter of 2009-10 and ending in the first quarter of 2010-11). addressed a number of challenges during the year under review: Raw materials: We encountered a sharp increase in the cost of our raw materials. used extensively in brown paper bags. 87 cr during 2009-10. customer issues declined and we generated a larger number of orders from our existing clients. gum tape. Product mix: We evolved our product mix towards unbleached paper with higher margins. As a result. Loan: We incurred an interest outflow of Rs. How did the Company respond to these challenges? With passion.85% of our EBIDTA. one will notice the gradual increase in the Company’s bottomline and cash profit. margins and profits. Quality issues: We encountered quality issues during the course of the year – making paper with wheat straw and matching the quality of paper made from wood fibre using controlled technology – which affected our realisations.

The audit helped us assess energy consumption across different manufacturing stages with the objective to target onward reduction and arrive at a prudent energy mix. In view of this. which will be reflected in our working from 2010-11 onwards.and other specialised products. 1 cr in interest costs in 2010-11 on a larger turnover. We implemented Total Productive Maintenance.000 TPA). 14. A combination of the developments is likely to reinforce the vigour of our turnaround and strengthen our bottomline during the current financial year. production increase by 10% following improved capacity utilisation of PM3 to 70%. This correspondingly strengthened our asset utilisation. We installed an electrostatic precipitator in our chemical recovery boiler. we expect to market products in geographies with greater respect for our environmental-friendly products. sweating of our assets on the one hand and a more responsible use of energy and chemicals on the other. The Indian industry is also affected by the same.20% and in PM3 .23 cr in 2008-09 to Rs. which we expect the uptime of PM 3 to increase from 74. Four. our by 2%. which makes our speciality products – manufactured from wheat straw – increasingly competitive.68% of our total income in 2009-10. As a result. which will help us save Rs. Raw material management: We embarked on the exercise to establish a wood source line to enhance product quality and reduce our dependence on wheat straw. Will it sustain? The global market has been volatile with hudge fluctuations in pulp and waste paper prices. the Company reinforced its focus on operational excellence through the following initiatives: CII performed an energy audit to help us balance our energy inputs and quantify energy use with the objective of onward rationalisation. Australia and the US following an increase in wood pulp prices from USD 664 per ton in March 2009 to USD 974 per ton in May 2010. our average realisation increased 9. Gearing: We repaid a part of our loan. We marketed 3. Overall. the growth in per capita income and the education shall both continue to fuel paper demand. which helped us achieve two things: control emissions and enhance our chemical recovery from 88% to 93%.33% from Rs. generate additional revenues through the enhanced marketing of pulp (installed capacity 39. which we expect will sustain during the current year. Some of the initiatives that we are taking to strengthen our performance are: One. As a result.150 tons of unconsumed pulp in the open market for an average realisation of Rs. our average realisations climbed 8% during the first quarter of 2010-11.60% in 2009-10 to 93% in 2010-11. 28. 31. the same may have an effect in the short-term. The proportion of unbleached paper increased from 56. Five.220 kwh in 2009-10 – which resulted in an annual notional saving of Rs. There has been a significant increase in capacity. 19. Value engineering: We strengthened the design of our digester related to PM 3. How much of this industry turnaround will translate into the Company’s financials? We expect that the combination of a favourable external environment and stronger internal working will translate into superior numbers for the Company in 2010-11. enabling us to cover our fixed costs more effectively.20 cr in 2009-10.756 per ton in 2008-09 to Rs.645 per ton in 2009-10. The result was that the audit helped us rationalise the use of power per ton of paper manufactured by 12% – from 1. we expect to achieve a topline of Rs. There has been a rebound in the country’s paper industry. we recognised that in a capital-intensive business. we are reinforcing our focus on contribution over volumes.13% of our production in 2008-09 to 72. 45 lacs. 11. Besides. Three. which should strengthen our margins and financials. which accounted for 7. success would be derived through a more efficient 6 | Yash Papers Limited manufacturing expenses declined by 21.350 kwh in 2008-09 to 1.5 MW capacity) to the state electricity grid. Two.16% in 2009-10. we expect to increase the export of our end products to Japan. Can you elaborate? At Yash Papers.13% from an average Rs.819 per ton in 200910. This not only reinforced our positioning as a clean company but also strengthened our competitiveness. we expect to reinforce our revenues through the sale of excess power (generated from our cumulative 8. Value-addition: We countered the increase in raw material costs through the increasing manufacture of value-added grades that fetched higher realisations. 110 crores in 2010-11 through a You indicated an improvement in operational working. which helped reduce the downtime in PM2 by 1. Six.

2 5 After-sales service The Company’s technical team interacts with customers after product sale for feedback and analysis. Integrated The Company’s captive pulp mill represents a backward integration. 7 Enduring customer relationships The Company has lasting relationships with its customers which is. which is evident from the operation such as paper production from agriresidue. Environment friendly The Company’s focus is towards achieving a positive carbon footprint and environment friendly company. highly trained technical services and product development teams and transparent functioning of the business. wrapping. made possible by web-based CRM. 8 Niche player The Company’s understanding of the market and its focus in niche products has made it a significant player for each of the niches targeted such as food and pharmaceuticals.Our strengths 1 4 Distribution network The Company possesses a marketing team supported by pan-India dealers. complete chemical recovery and the proper treatment of effluent to use it in ponds and in farming. Australia and South-East Asia. power generation from biomass. 3 6 International presence The Company exported products to 20 countries across the Middle East. grocery bags and anti rust etc. Competitive edge The Company is an agriculture-based paper manufacturer using wheat straw as raw material. Annual report 2009-10 | 7 .

with significant growth coming out of Asia and Eastern Europe (Source: reaching an estimated 490 million tons by 2020. it is 35 kg in discussion and analysis Global paper industry The global paper and paperboard industry is dominated by North America. Global paper and paperboard production by grade (Source: ForesSTAT. Global paper and paperboard production stood at around 380 million tons in 2008. FAO) 8 | Yash Papers Limited Chinadaily. Europe and Japan (Source: The world demand for the material is expected to grow by around 3% annually. China is now the world's second-largest household paper consuming nation (Source: Global paper and paperboard production by region (Source: Europe and Asia. the latter accounts for over a third of global paper production. Asia dominates the demand for paper and paperboard. FAO) Paper demand is unevenly distributed as 72% of the world's paper is consumed by 22% of the world's population – in the US. implying excellent growth prospects. while Europe and North America account for about 30% and 25% respectively. With a large number of paper production capacities shutting down in North America and growing capacity creation in Asia (especially China). the US leading with over 100 million tons and accounting for nearly a third of the world’s production. . even as per capita paper consumption in the US is 300 kg. consumption increased at a CAGR of 7% across 2003-08 (Source: Paperage. Interestingly.

textile.0) Maplitho (including branded copier) (34. 77. 321 billion in 2008-09. The Indian paper industry’s market size has been estimated at Rs. 7 May. Indian paper manufacturers. Export opportunity: A number of European and US paper mills are shutting down owing to overcapacity and cost issues.4% annually. consumer durable and retail segments. 321 billion.6%) according to CRISIL Research.6% of the world’s paper and paperboard production even though the country accounts for nearly 16% of the global population. growing at a CAGR of 10. demand for speciality paper (tissue paper.6) Newsprint (19.5%) and speciality paper (3. followed by writing and printing paper (29. newsprint (19. The paperboard market size was about Rs.6% in 2009-10 (from 8.5 million tons in 2011-12 and 15 million tons by 2015 (Source: Business Line. In 2009-10. touching 11.0) Note: Figures in brackets indicate share of the category in percentage terms (Source: Crisil Research) Annual report 2009-10 | 9 . 120 billion in 2009. an attractive export opportunity for Indian paper mills.18 MT) Writing and printing paper (29. tea bags. utilising agriculture-based raw material.1) Kraft (54. demand grew at a 3. 195 billion in 2003-04 to Rs. 2010). Packaging industry: The Rs.6%). riding a growth in the pharmaceutical. business card paper and greeting card paper) is expected to increase at around 8% CAGR Structure of the Indian paper industry Indian paper industry (9. Positive macro triggers Low per capita consumption: India’s per capita paper consumption grew 10. an increase in consumption by one kg per capita can potentially increase annual paper demand by a million tons.18 million tons of paper.9) Virgin board (8.18 kg) compared with 42 kg in China and 350 kg in developed countries (Source: Assocham). fine art paper. In India.4% while consumption is pegged at a CAGR of 9% till 2012-13 on account of a growing demand for tissue paper. 7 May.7) Recycled board (37. growing at an average 6-7% compared with 2% growth in developed countries (Source: Assocham). India is among the world’s fastest growing paper markets.000-crore Indian paper industry accounts for about 1.570-crore Indian packaging industry (as on April 2010) grew around 15% year-on-year (Source: Indianpackagingshow. FMCG. filter paper.3) Creamwove (51.Indian paper industry The Rs. Besides.5% from around Rs.4 million tons in 2009 (Source: CRISIL Research).com).3) Coated (14. 2010). the country produced 9. Changing lifestyles: With improving domestic living standards.5) Speciality paper (3. The paper industry growth is forecast at 8. cigarettes. possess a sustainable growth opportunity on account of growing environment consciousness.4% CAGR from 3. paperboard accounts for nearly 47. light weight online coated paper and medical grade coated paper (Source: Business Line.3% of the total market size.6) Paperboard (47. 25. India’s paper production is forecasted to grow at a CAGR of 8. implying a large scope for correction.3 kg in 2008-09 to 9.7 million tons in 2004 to 4.

131 1. National Sample Survey Organisation. while the writing and printing.3 4. Demand for writing and printing paper is expected to grow 6.50% 10. 20% and 3% respectively. paperboard. insulation grades.10% Source: Census 2001.40% 10. recycled board and virgin board Growth in the packaging industry. IPMA.60% 1.164 1.80% 2007 7. industrial production and development in packaging technology and substitution by other materials Speciality paper Tissue paper.Paper type Writing and printing paper Uses Writing.20% 1. level of literacy.5% – from 6. growing circulation and readership Demand and supply: Domestic paper demand grew steadily at a CAGR of 6. share of the paperboard segment in total demand has increased.8 7.114 1. maplitho.5% CAGR. With rising economic growth.199 1. grey and white board and MG posters Consumption of this paper variety is linked to the standard of living as well as per capita income Newsprint paper Printing of newspapers and magazines Glazed and standard paper Growing economy.7 1. It is expected that by 2014. level of business activity.10% 2010E 9. fine art paper. newsprint and speciality paper segment accounts for nearly 30%.8 million tons in 2003 to 9.60% 8. paperboard demand will grow at a 7% CAGR due to a healthy growth in industrial production and recovery in the consumer goods sector.18 10. copier and coated paper Demand drivers Population growth. Karvy estimates 10 | Yash Papers Limited .40% 1.50% 12 8. etc Duplex.2 8. paper for specialised industrial usages such as steel mill kraft.182 1.1 5.5 8. Estimated paper demand Paper demand statistics Per capita consumption (Kg) Growth (%) in per capita consumption Indian population (mn) Growth (%) Total paper demand (mn MT) Growth (%) 7.3 6. printing. public and private spending on education.20% 1.147 1.2 8. driven by the government’s thrust on education and overall economic growth.10% 2009E 9.4 3. stationery Varieties Creamwove.80% 2008 8.50% 8.096 2005 7 2006 7. increasing presence of modern retail formats and growth in the printing industry Paperboard Industrial purpose Kraft paper.30% 1.8 6.80% 1. The paperboard segment accounts for around 47% of demand.3 million tons in 2009 (Source: CRISIL Research).40% 9.10% 2011E 10 6.

In 2009. even though this is low compared with Japan’s 250 kg.066 83. The manufacturers are increasing capacity significantly.579.2 7.290 5. reaching an all time high of USD 974 per ton as on 2009 (Source: CMIE). China’s 45 kg. India has emerged as one of the world’s fastest growing paper markets. the annual operating capacity was 9.7 6. accounting for around 55-60% of the total costs.Production: The Indian paper industry is fragmented.052 6.870 78. Paperboard prices are likely to increase by 10-12%.5 377 458.488.102 7.458 81. Price: Raw materials and power constitutes the major cost.502 7. most of which are in the writing and printing segment.1 million tons and annual production was 7. Korea’s 170 kg. a growth of 10. (In 000’ tons) 2003-04 Capacity Production Capacity utilisation Demand Imports Exports 1 2004-05 7. an earthquake in Chile recently disrupted pulp supplies of about three million tones.5 6. boosting the demand for its alternative – waste paper. the domestic prices of paper are expected to increase over 2010-11 and 2011-12. Moreover.5 to 2 million tons between 2008 and 2012. adding about 1. the US government withdrew a subsidy of USD 125-150 per ton for the treatment of black liquor (generated during pulp manufacturing).2 16. Further. The withdrawal of the subsidy discouraged wood use for pulp manufacture.3 kg during 2008-09 to 9. Per capita consumption Annual report 2009-10 | 11 .530 75.5 572.1 7.2 5.9 7.660 82.18 kg in 2009-10.2 6.7 2008-09 9. world average per capita consumption of 56 kg and Asian average of 46 kg.4 314 421 2006-07 8. resulting in an increase in price of pulp globally.8 469. the top five producers accounting for around 20-22% of the total Indian paper capacity. The cost of pulp has been rising after the global slump.793. and with currently undertaken expansions. owing to lower capacity additions and higher demand growth. As per CRISIL estimates.9 5.3 CAGR for the period 2003-04 to 2008-09 (Source: CRISIL Research.1 2007-08 8.3 CAGR1 (%) 4.6 27.452 172 250 6. which is a harmful effluent and by-product of kraft paper manufacture. another 15 lac tons is expected to be added by 2012 (Source: CRISIL Research). Per capita consumption increased from 8. resulting in price rise.632 6.6 531.277 82.4 494.502 5.4 million tons.170.4 195 275 2005-06 7.040. The paper industry faces a demand-supply mismatch.6% (Source: Assocham). Industry) Consumption: As paper consumption is linked to economic development.

094.79 147.98 150.37 266.79 522.55 (7.50 4.10 12.423.01 2.08 330.26 10.61 146.35 527.39 115.10 315.64 73.73 1.42 705.61 141.31 *0.90 261.Ten-year financial summary (Rs.43 222.09 408.620.033.90 56.44 141.18 1.22 1.00 18.140.00 55.00 95.41 8.37 11.195.48 1.246.29 77.90 12.50 130.81 158.71 432.72 51.00 5.90 187.41 140.168. 12 | Yash Papers Limited .25 415.71 241.51) 5.23) (1.92 120.84 85.75 11.72 9.53 9.413.92) 2.66 222.14 583.00 (55.61 160.30 200.50 52.58 2.09 0.99 2.658.725.91) (214.60 0.71 9.54 1.16 3.445.26 161.Current tax .76 239.86 180.97 2.10 87.186.70 1.13 647.34 104.00 (88.18 2.36 629.00 1.66 612.19 413.45 432.84 425.204.14 435.15 467.94 2.17 805.80 634.61 677.33 131.30) (324.49 2.867.22 448.90 142.50 10.86 80.51 1.31 787.80 441.36 487.44 8.80 609.84 59.284.78 2.31 110.16 339.72 101.87 258.04 133.932.24 135.153.67 548.57 343.40 462.45 977.53 1.24) 97.00 39.96 353.41 564.09 Dec-03 Dec-04 Dec-05 Dec-06 March.50 (224.45 3.03 6.24 242. of equity shares for the year.89 1.62 98.21 858.975.60 432.08 (15 months) March-09 March -10 * Computed on weighted average No. in lacs) Mar-01 Mar-02 Dec-02 (nine months) Operating results Sales and other income Raw material Chemical consumed Power and fuel Stores and repairs Salaries and wages Administrative and selling expenditure Interest Gross profit Depreciation Provision for taxation .43 393.23 376.119.023.27 3.06 259.33 488.67 158.13 2.22 1.499.Deferred tax Net profit Earning per share Dividend % 12.32 389.44 113.07) 87.64 275.62 1.34 584.97 2.918.05 614.95) (0.

753.59 Nil 2.24 4.25 0. **Reduced due to provision of the Deferred Tax Liability of Rs.72 386.10 lacs deposit against preferential equity warrants.73 1.25 0.28 5.855.61 2.41 0.719.028.58 1.81 499.158 24.16 0.598 1.69 0.537.44 329.898.13 386.05 9.400.15 Nil 2.55 **787.910.04 386.06 1.40 2.722.906.868.157.200.477.54 3.874.194.08 (15 months) March-09 March -10 $ Includes Rs.41 397.69 13.16 1.31 540.31 2.46 606.47 363.00 1.566.61 2.066.380.14 203.261.92 1.754.99 2. 307.420.48 3.949.632.142.408.93 as on 1st April.096.50 410.100.122.76 7.9751 26.91 2.76 Dec-03 Dec-04 Dec-05 Dec-06 March.22 914.67 448.71 13.38 655.21 0.06 569.06 2.712.066.06 12.415.987.60 2.15 7.930.215.24 $2.032.57 5934.67 1.55 1.64 0.37 595.86 0.22 9.88 Nil 12.20 97.273.77 7.59 1.55 1.89 286.33 4.21 4.431.510.12 3.02 736.35 Nil 2.96 9.13 295.420.795 14.542.820 11.906.691.58 10.06 1.033.48 0.71 Nil 2.46 1. in lacs) Mar-01 Mar-02 Dec-02 (nine months) Financial summary Assets employed Fixed assets (at cost) Fixed assets (net) Investments Current assets (net) Miscellaneous Expenditure Total assets Financed by Total shareholders' funds Share capital Reserve and surplus (net) Deferred tax liability Borrowings Long term Short term Debt: Equity Other information Production in MT 12.67 277.423.71 410.50 247.95 843.673.00 1.11 441.13 13.063 16.68 1.63 185. 2001.89 0.974.33 1.67 1.845.37 1.(Rs.26 510. Annual report 2009-10 | 13 .19 607. 23.87 0.39 Nil 13.717.53 560.838.307.68 386.06 2.65 1.825.24 10.762 15.451.64 1.46 8.188 14.223.408.26 6221.35 1.55 1.47 677.757 12.452.56 2.31 237.98 453.929 2.631.24 386.55 452.02 15.28 46.98 2.36 2.32 11.14 99.90 10.25 2.15 1.55 925.400.476.69 2.38 1.940.77 0.46 1.29 1.55 1.597.279.76 379.28 Nil 10.16 Nil 4.35 3.55 884.944.326.399.081.133.21 Nil 2.

71 7.37 2.37 4.259 2.80 15. Company shifted its raw material mix to wheat straw (83% of requirement).59 63.91) Raw materials Bagasse Wheat straw Old gunny/Jute goods Cost per % of ton (in Rs. timely raw material availability is critical as any shortage can impact capacity utilisation and viability. which are just outside the 200-km radius Strengthen the raw material blend through the introduction of raw materials like hosiery and cotton waste Increase the quantity of jute and gunny bags from the current 4% to 10% % of total raw materials 8. facilitating economical and timely procurement. the In a paper manufacturing company.) revenue 2. The Company is advantageously situated in Faizabad in eastern Uttar Pradesh.25 Unbleached softwood 23. raw material suppliers and farmers.42 17.722 14 | Yash Papers Limited . The Company enjoys strong relationships with Road ahead Procure material from new locations like Sitapur and Hardoi. at a cost lower than in other parts of India.19 4.80 7. a locational advantage vis-à-vis sourcing of raw materials.75) (19.07 Increase/ decrease in the cost in 2009-10 over 2008-09 (%) 28.77 (18.617 Bleached softwood 30. which are sourced from within a 200-km radius of the mill.86 1.90 0.538 4.Our operations Input management Owing to rising bagasse prices. gunny bags (4%). softwood pulp (3%) and bagasse (10%).730 2.

retention and strength through dry strength additives Quality parameters Parameters Paper brightness Grammage variation of paper from standard Diffused opacity Tensile strength kg/ 15 mm Earlier 79-81% 10% 65% 1. drainage. Awarded Best Exporter of the Year by the UP state government Generated repeat orders for exports to Europe and SouthEast Asia Road ahead Stabilise production at a high-quality standard Develop a special kraft grade for interleaving stainless steel sheets Develop insulation grade kraft for electrical industries Develop a special grade for bags for the Middle East markets Work to enter the specialised high-value fireworks industry market Manufacture high wet-strength kraft and poster paper Improve the market penetration of base paper for anti-rust usages Highlights. gum tape and bag paper Reached a larger number of customers directly. In the business of paper manufacture. Invested in the determination of CED pulp viscosity (indicates pulp degradation during bleaching) which will enhance pulp strength and brightness Developed a new grade of kraft antirust. moisture and ash content Highlights. 2009-10 Marketed customised products like antirust paper. Improved tear factor.5 Kg/ 15 mm Ash content 10-12 % Now 80-81% 5% 75-80% 1. ISO 14001. The Company expects to increase the proportion of highvalue kraft products in its product mix. Annual report 2009-10 | 15 . OHSAS 18001 and FSC certifications.0 – 3. used as a VCI coating base Discontinued the use of sodium thiosulphate in bleached pulp to eliminate the residual chlorine in pulp Highlights. quality. 2009-10 Developed the end product in two new shades – yellow and pista Strengthened product formation.6. 2009-10 Implemented an online-driven quality control system in Paper Machines II and III to manage product weight. circumventing traditional distribution channels Entered seven new countries Road ahead The Company will focus on exports and increase sales volume per customer through an increased product offering. Reduced quality issues by 25% Improved poster paper gloss and printability through superior management of ultra fine talc as a filler Reduced variations in paper quality by taking 10 cm x 10 cm paper samples of reels instead of 20 cm X 25 cm samples Research and Development The Company has consistently focused on cost reduction and quality improvement (paper strength and surface properties) with the objective of reducing customer complaints. it is imperative to market the right product to the right user in the right location at the right price at the right time. In a business where the end product enjoys diverse applications. reduced the consumption of softwood bleached pulp through superior bleaching sequence control parameters Marketing and distribution The Company strengthened its marketing and distribution resulting in superior service.5 .0 Kg/ 15 mm 10-15% Road ahead The Company expects to reinforce its product and process consistency through proposed ISO 9001. the key lies in prudent customisation.Quality In paper manufacture. quality consistency is critical for survival as any variation can impact the Company’s brand. Yash Papers has always focused on product quality derived out of process discipline.

resulting in better machine uptime Implemented quality control system (QCS) for better moisture control and weight per square metre in the end product Road ahead Produce an average 3. a basis for increment. which reduced downtime and improved productivity Human resources The Company invested in its people competencies through prudent recruitment. 2009-10 Developed two paper varieties – kraft bag plain (KBP) and poster bag plain (PBP) Implemented total productivity maintenance (TPM) for enhancing productivity. at the end of the year. Appraisal The Company follows a self appraisal system called Lakshya Patra. in which the employees fill their own targets to be achieved during the month. The Company aims to create a world-class organisation with a motivated workforce that is able to deal with the challenges at the workplace in a focused and exemplary manner.220 kwh) through Deloitte’s energy audit Initiated total productive maintenance (TPM) through the institution of two teams (Daily Management Team and Autonomous Management Team). soft skills and other desirable attributes such as teamwork. and this forms the basis of the bonus awarded at the end of the year. which are then discussed with their supervisors.Operations In a capital-intensive business marked by the manufacture of a number of end products. success is derived from optimal asset use on the one hand and a diverse product mix on the other. standardising operations. the Company arranges for regular training programmes – at various levels within the plant.000 TPM through the installation of suction roll to reduce downtime and improve productivity Reduce power consumption to 1. responsibility and initiative are evaluated. The Company strengthened its operations during the course of the year under review.5% in 2008-09 to 11% in unbleached paper manufacture and from 16% in 2008-09 to 15% in bleached paper manufacture. The results are available to each employee for reference.100 kwh through kaizen through the elimination of needless operations and operational standardisation Strengthen the surface property of paper (used in the soap segment) and dimensional stability Reduce off-quality from 6% to less than 2% through the implementation of quality control system resulting in online measurement and control Achieve zero customer complaints through improved product quality 16 | Yash Papers Limited . rules. directives and standard operating procedures Rationalised power consumption per ton of paper by 12% (from an average 1. Reduced chemical and liquor consumption from 12. the employees compare the targets with actual performance and evaluate themselves. Also. At the end of the month. measuring operations and checking for deviations through policies. guided by internal and external trainers – for enhanced productivity and personal development. The Company’s human capital increased from 377 employees in 2008-09 to 384 employees in 2009-10. continuous training and attractive rewards to enhance retention. which rationalised costs Made design modifications in the digestor in the pulp mill. Training and development The Company developed a grading system called the Yash Samriddhi Path to improve employee understanding of the required skill sets of each job or area of work within the plant and enable each employee to chart his career path within the organisation. According to employee evaluation through this system.350 kwh in 2008-09 to 1. Highlights.

STATUTORY SECTION Annual report 2009-10 | 17 .

023.08 629.2009 8.946.00 61.363.55 6.29 419.78 13.60 5.95) 8.69 (34.03. 2010.86) 18 | Yash Papers Limited .Current tax .01 2.278. Financial Results: The summary of operating results of your Company for the year 2009-10 is given below: (Rs.137.03. In lacs) Current Year ended 31.88) 7.22 (298.Deferred tax Net profit (net loss) 2.00 (88.2010 Net sales Other income Increase/(Decrease) in stocks Total expenditure Interest Depreciation Profit before tax Provision for taxation .Directors' Report Your directors have the pleasure of presenting the 29th Annual Report together with the audited Statements of Accounts of your Company for the financial year ended 31st March.140.02 Previous Year ended 31.92 1.91) (214.54 420.91 1.12 634.41 8.

Mrs. offer themselves for re-appointment. 6 in 2010-11. That the Directors have prepared the annual accounts on a going concern basis. That the Directors have selected such accounting policies and applied them consistently and made judgments and estimates that are reasonable and prudent so as to give a true and fair view of the state of affairs of the Company as at 31st March.505 MT and 3. 2009. Insurance The properties of your Company comprising buildings. Gupta and Mr.20). 1. 2009 (Rs 5. 4. 2010.Dividend In view of in-sufficient profit during the year the Directors have not declared dividend this year. Accordingly. 2010 against sales of 30. That the Directors have taken proper and sufficient care for the maintenance of adequate accounting records in accordance with the provisions of this Act for safeguarding the assets of the Company and for preventing and detecting fraud and other irregularities. Mr. The Company thus continues to enhance its employees’ skills and keep them updated with industry dynamics.0. Reserves as on 31st March. The Directors wish to place on record their deep appreciation for dedication of the employees and their commitment to performance. 68 lacs which matured during the previous years. stocks. G. Mumbai. 84 crores in the current year against Rs. Fixed Deposits The Company was holding an aggregate sum of Rs. Outlook We expect to achieve a higher topline in 2010-11. Statement pursuant to listing The equity shares of the Company are listed with the Bombay Stock Exchange Limited. 2009. 1956. That in the preparation of annual accounts. We endeavor that our employees remain satisfied and have best working environment. 2010 and of the profit of the Company for the year ended on that date.603 MT during the year ended 31st March. 2010 stood at Rs. Yash Krishna. 2010 as against a production of 29. 2009. applicable Accounting Standards have been followed. Manjula Jhunjhunwala. your Directors are reasonably confident of Directors Your Directors. retire by rotation and being eligible. The Listing fees Annual report 2009-10 | 19 . Five depositors did not claim their deposits amounting to Rs.751 MT and 1. in relation to the financial statements of the company for the year 2009-10.606 MT and 405 MT in the previous year ended 31st March. With the adoption of aggressive cost optimisation programmes and the flexibility to produce higher value kraft output from PM I and PM II and high-value poster paper from PM III. The Company has achieved sales of paper and saleable pulp of 26. were adequately insured against various risks. etc. 2010 against 1. employees and shareholders as on 31st March. Human Resource And Welfare The Company considers its human resource to be its asset. Directors’ Responsibility Statement In terms of Section 217 (2AA) of the Companies Act. we expect to turn in a net profit margin of 10 percent.. thereby building a strong case for the re-rating of our stock (market price at the close of 31st July. 88 crores in the previous year. 2009.455 MT in the previous year ended 31st March. N. Operations Your Company has achieved a production of paper and saleable pulp of 26. 2. plant and machinery. Export The Company exported 2.58 lacs on account of deposits from the public.12 crores of the preceding periods 31st March.12 crores as compared to Rs.211. We have the most cordial industrial relations.384 MT of paper during the year ended 31st March. the board of Directors hereby state and confirm: achieving much better results in the year 2010-2011.153 MT during the year ended 31st March.472 MT during the previous year ended 31st March. other assets. 3. The Company achieved a gross turnover of Rs. This will drive our EPS to Rs.598 MT and 3.

In view of forgoing a sum of Rs.99 lacs (including Rs.000/. 2010. The Company is confident of favourable disposals of pending appeals. Stock Exchange Limited. B-20 of Schedule-17 regarding income of Rs. * The Company has applied for voluntary delisting of its equity shares from the U. Kanpur has granted its approval through its Letter No.24. The Company has paid the requisite listing fees to the stock exchange for the financial year under review. 270. B-2(d) of Schedule 17. Listing on stock exchange The Company’s equity shares are currently listed with the Bombay Stock Exchange Limited. Other information The particulars under Section 217(1) (e) of the Companies Act.2. 2003 and U. Note no.per month. Narayana Chairman . Excise Duty.000/. Income Tax and non provision of demands in respect thereof. Kanpur as under the SEBI (Delisting of Securities) Guidelines. 2010. Chartered Accountants. P. Customers and Government authorities during the year. 1988 are given in Annexure and form part of this report. The Company has disputed a Derivative transaction Corporate governance A separate report on Corporate Governance pursuant to Clause 49 of the Listing Agreement is furnished as a part of the Directors’ Report together with a certificate from the Statutory Auditors confirming compliance with the said code is annexed to the said report.48 Lacs from Certified Emission Reductions 20 | Yash Papers Limited (Structured USD/CHF Option) entered into with ICICI Bank Ltd. Accordingly.53 lacs for the current year) on account of unpaid interest accrued on above.00. 270. The project is under CDM (Clean Development Mechanism) verification and final report is awaited. Mumbai. Stock Exchange Limited.have been paid for the Financial Year 2010-2011. 55. 158. Your Directors also wish to place on record their appreciation for the whole hearted commitment. Kanpur. 1956 has gross receipt of Rs. P. On the basis of legal opinion no provision has Place: Faizabad Date: 12th August. The project has already been registered with UNFCCC (The United Nations Framework Convention on Climate Change) on 01. 2. 1956 read with the Companies (Disclosure of particulars in the report of Board of Directors) Rules. 2. sincere and dedicated efforts by the entire Yash team to attain the Company’s consistent growth.per annum or Rs.84 lacs on account of unwinding charges (partial unwinding). Note no.04. 64. Vendors. 3. They have expressed their willingness to continue in office. 2010 G. aggregating to Rs. Auditors M/s Kapoor Tandon & Co. B-2 (a) of Schedule-17 regarding pending litigation in respect of Trade Tax. None of the employees covered under Section 217 (2A) of the Companies Act. retire at the ensuing Annual General Meeting. if reappointed and have furnished the requisite certificate of their eligibility pursuant to Section 224(1B) of the Companies Act. 2010.UPSE/2009-10/Listing/1116 dated June 28.95 lacs has not been provided.12 lacs on account of ‘Mark to Market’ valuation of outstanding exposure and Rs. (CERs) accrued for the year ended 31st March. The Company has entered into an Agreement (Emission Reduction Purchase Agreement) with the Belgian State for sale of CERs (Certified Emission Reductions) generated on account of GHG (Green House Gasses) Emission Reduction.00. The replies to the above qualifications by the Board of Directors are as below: 1. Note no. 38.95 Lacs in respect of disputed Derivative (Structured USD/CHF Option) transaction. loss of Rs. 158.48 lacs has been recognised as income towards CERs accrued for the year ended 31st March. 24. hence no provision is required at this stage.. contribution. B-21 of Schedule-17 regarding non provisioning of Loss of Rs.07. Acknowledgements Your Directors would like to express their grateful appreciation for overwhelming cooperation and assistance received from the Banks. been considered necessary by the management. Shareholders. 1956. For and on Behalf of the Board Auditors’ observations The observations in the Auditor's Report are based on the following Notes:1. The Company has installed a ‘6 MW Biomass Cogeneration Power Plant’ for captive consumption (the project). However the same has been disclosed as contingent liability in Note no. Rs. 3.

Information pursuant to the companies (disclosure of particulars in the report of board of directors) rules, 1988.

I. Power and fuel consumption
Current Year (a) Electricity (i) Purchased unit (lacs) Total amount (Rs. in lacs) Rate / unit (Rs.) (ii) Own generation Through diesel generator Unit (lacs) Unit per litre of diesel oil Cost / unit (Rs.) Through steam turbine Unit (lacs) Unit per MT of fuel (Paddy husk) Cost / unit (Rs.) 372.29 952* 1.70 401 970* 1.26 0.29 5.09 6.11 0.39 4.09 8.29 Nil Nil Nil Nil Nil Nil Previous Year

1. Conservation of energy
(A) Energy conservation measures taken
i. Energy audit done by CII for entire plant and recommendation has been implemented. ii. Installation of energy efficient lights. iii. Installation of capacitors to increase power factor. iv. Rationalisation of motors. v. Speed optimisation of pulp and agitators. vi. Minimisation of water consumption.

(B) Additional investment and proposals, if any, being implemented
For reduction of consumption of energy i. Installation of energy efficient drive (gearbox and motor) of continuous digester ii. Installation of natural light and air ventilators. iii. Installation of energy efficient drives in Pulp mill equipment iv. Installation of capacitors to increase power factor.

Note: *Steam Turbine is extraction cum condensing type hence fuel allocation is on an estimated basis. (b) Coal Quantity (MT) (c) Furnace Oil Quantity (Kilo litre) (d) Others (i) Paddy Husk Quantity (MT) Total Cost ( lacs) Average Rate (Rs.) (ii) Bagasse/ Pith Quantity (MT) Total Cost ( lacs) Average Rate (Rs.) 71663 1157.96 1616 1643 8.31 506 75138 1220.45 1624 4802 25.20 525 Nil Nil Nil Nil

(C) Impact of the measures of the above
The implementation of the above measures for energy conservation by the Company has resulted in reduction in power & fuel consumption from 1350 kwh per MT to 1220 kwh per MT.

(D) Total energy consumption and energy consumption per unit of
Production as per prescribed form A of the annexures in respect of the industries specified in the schedule thereto.

Annual report 2009-10 | 21

II Consumption per unit of production of paper
UOM Electricity Furnace Oil Coal Paddy Husk Bagasse Pith Units Litre MT MT MT Current Year 1401* Nil Nil 1.25** 3.00** Previous Year 1349* Nil Nil 1.20** 3.00**

(E) Technology absorption, adaptation and innovation
(i) Efforts, in brief, made towards technology absorption, adaptation and innovation :Installation of pulp cleaning equipment (ii) Benefits derived as a result of the above efforts e.g. Product improvement, cost reduction, product development import substitution, etc. Improvement in existing process and product quality, performance, productivity and cost reduction. (iii) Imported Technology (Imported during the last five years reckoned from the beginning of the financial year) None

* Inclusive of consumption for operation of turbine equipments. ** Bagasse pith is used alongwith the paddy husk as fuel for producing steam which is used for paper manufacturing and power generation hence consumptions are estimated.

2. Technology absorption
Efforts made in technology absorption as per prescribed form B of the annexure.

(B) Benefits derived as a result of the above R & D
Enhancement in quality and reduction in cost.

3. Foreign exchange earning and outgo
(A) Activities relating to exports; initiatives taken to increase exports; development of new export markets for products and services; and export plans;
The Company has continued thrust on exports.

(C) Future plan of action
To strengthen and continue improvement in quality through improvement of process control systems to reduce process time & wastage. To develop new grades of paper.

(A) Specific areas in which R & D carried out by the Company
R & D centre is doing research in non-wood fibers under guidance of consultants.

(B) Total foreign exchange used and earned
i. Used (Including Interest Rs.70,75,322/on FCNRB loan taken from SBI as part of working capital limits.) ii. Earned Rs.6,02,24,075/-

(D) Expenditure on R & D
Current Year (i) Capital (ii) Recurring (iii) Total (iv) Total R & D Expenditure as a percentage of total turnover 9.59 9.59 0.12

(Rs. in lacs)
Previous Year 6.61 6.61 0.08

Rs.7,24,11,320/For and on Behalf of the Board

Place : Faizabad Date : 12th August, 2010

G. Narayana Chairman

22 | Yash Papers Limited

Report on corporate governance
Corporate Governance Compliance Report
In terms of Clause 49 of the Listing Agreement (Clause 49) entered into with the Stock Exchange, the Corporate Governance Compliance Report is provided hereunder:

2. Board of Directors:
The Board meetings schedule is circulated to all the Board Members in the beginning of every financial year. The Board members are provided with well structured and comprehensive agenda papers. All major agenda items are

meets the requirement relating to the Composition of Board of Directors.

b) Non-Executive Directors’ compensation and disclosures:
The Non-Executive Directors are paid sitting fees within the limits prescribed under the Companies Act, 1956.

1. Company’s Philosophy on Code of Governance
The Company’s Philosophy on the Code of Governance as adopted by its Board of Directors: Ensure that the quantity, quality and frequency of financial and management information, which the management shares with the Board, fully places the Board Members in control of the Company’s affairs. Ensure that the Board exercises its fiduciary responsibilities towards shareowners and creditors, thereby ensuring high accountability. Ensure that the extent to which the information is disclosed to present and potential investors is maximised. Ensure that the decision-making is transparent and documentary evidence is traceable through the minutes of the meeting of the Board/Committees thereof. Ensure that the Board, the Management, the Employees and all concerned are fully committed to maximising longterm value to the shareowners and the Company. Ensure that the core values of the Company are protected. Ensure that the Company positions itself from time to time to be at par with any other world-class company in operating practices.

backed by in-depth background information and analysis wherever possible, to enable the Board members to take informed decisions. To enable the Board to discharge its responsibilities effectively, the members of the Board are briefed at every Board Meeting, on the overall performance of the Company. The Board’s role, functions, responsibility and accountability are clearly defined. In addition to matters statutorily requiring Board’s approval, all major decision involving policy formulation, strategy

c) Other provisions as to Board and Committee:
During the year 2009-10, six meetings of the Board of Directors were held on 27th April, 2009, 29th July, 2009, 29th September, 2009, 26th October, 2009, 29th January, 2010 and 3rd March, 2010. The maximum time gap between any two consecutive meetings has not exceeded the statutory time limit of four months. The 29th Annual General Meeting of your Company was held on September 29, 2009. None of the Directors of the Board serve as Members of more than 10 committees nor do they chair more than 5 committees, as per the requirements of the Listing Agreement. Details of attendance of Directors at Board meeting and at the last Annual General Meeting with particulars of their other Directorships and Chairman Membership of Board Committees (excluding Yash Papers Ltd.) showing the position as on March 31, 2010 are given below:-

a) Composition of the Board:
The present Board consists of two Executive Directors and eight Non-Executive Directors. The Non-Executive Directors with their diverse knowledge, experience and expertise brings in their independent judgment to the deliberations and decisions of the Board. The Non-Executive Directors did not have any material pecuniary relationship or transactions with the Company during the year 2009-10. The Company has a Non-Executive Chairman. The Company is having six Independent Directors which is more than 60% of the total number of Directors. The Company

Annual report 2009-10 | 23

Non-Executive. G. Independent Non-Promoter. R. Ved Krishna Mrs. Non-Executive. Banerjee Mrs. Non-Independent Promoter. 24 | Yash Papers Limited . Narayana holds the position of Chairman Emeritus in Excel Industries Limited and does not hold the position of Director. Non-Independent Non-Promoter. Executive. Independent * Mr. P. Non-Executive.Name Designation Category Attendance at Board Meetings Attendance at Last AGM No. Non-Executive. N. K. Basant Kumar Khaitan Mr. Non-Executive.e. Sheetal Jhunjhunwala resigned from the Company w. Chakraborty Mr. Independent Non-Promoter. of Committees and Positions held Member Nil Nil Nil Nil Chairman Nil Nil Nil Nil Mr. Independent Non-Promoter. 2009. Gupta Dr. Yash Krishna Mr. Pudumjee Managing Director Director Director Executive Director Director Director Director Promoter. 19th September. Manjula Jhunjhunwala Mr. G. Narayana* Mr. Independent Non-Promoter. 6 3 2 4 Yes Yes No Yes Nil 1 Nil Nil 4 5 5 1 4 2 4 Yes Yes Yes No No No Yes 2 4 Nil Nil Nil 19 1 3* 1 Nil Nil Nil 1 Nil 1 2 Nil Nil Nil 3 Nil Nil 1 Nil Nil Nil Nil Nil Director Director Director Director Non-Independent Non-Promoter. Non-Executive. Executive. Non-Independent Promoter.f. Independent Non-Promoter. ** Mrs. Sheetal Jhunjhunwala** Mr. Non-Executive. Ramesh Narayan Mr. Non-Independent Non-Promoter. Non-Executive. N. D. of outside Directorship Director Chairman 1 Nil Nil Nil No. Non-Executive. G.

4. b. if any. 3. and adequacy of the internal control systems. g. all Directors are liable to retire by rotation. which interalia includes: 1. Reviewing the adequacy of internal audit function. taxation.A (iii) of the Listing Agreement from the Independent Directors. Disclosure of any related party transactions. The members of the committee are well versed in Annual report 2009-10 | 25 . 5. 9.To look into the reasons for substantial defaults in the payment to the depositors. Reviewing. The copies of the Code of Conduct as applicable to the Directors as well as Senior Management of the Company are uploaded on the website of the Company – www. the management. performance of statutory and internal auditors. Significant adjustments made in the financial statements arising out of audit findings. Oversight of financial reporting process and to ensure that the financial statement is correct. Reviewing the findings of any internal investigations by the internal auditors into matters where there is suspected fraud or irregularity or a failure of internal control systems of a material nature and reporting the matter to the board. Reviewing. Approval of payment to Statutory Auditors for any other services rendered by the Statutory Auditors. the financial statement before submission to the board with particulars reference to: a. the appointment.Discussion with statutory auditors before the audit commences. The Company has received declarations on six criterions of independence as prescribed in Clause 49. with the management. (D) Code of Conduct (i) The Board of Directors has laid down Code of Conduct for all Board Members and Senior Management of the Company. Particulars of Directors retiring by rotation and eligible for re-appointment have been given in the attachment to the Notice and Explanatory Statement. Company Law and general management practices. c. The terms of reference of the Audit Committee were in accordance with the Listing Agreement with Stock Exchanges. Compliance with listing and other legal requirements relating to financial statements. f. Qualifications in the draft audit report. matters relating to finance. Other than the Managing Directors and Executive Directors. (ii) The Members of the Board of Directors and Senior Management personnel have affirmed the compliance with the Code applicable to them during the year ended 31st March. debenture holders. e. 2010. shareholders (in case of non payment of declared dividends) and creditors. Audit Committee The Audit Committee consists of four independent NonExecutive Directors and one non-independent Non-Executive Director. including the structure of the internal audit department. Companies incorporate outside India and Section 25 Companies.yash-papers. staffing and seniority of the official heading the department. with the management.Other directorships do not include alternate directorships of Private Limited Companies. 8. 11. Matters required to be included in the Director’s Responsibility Statement to be included in the Board’s Report in terms of Clause (2AA) of Section 217 of the Companies Act. accounts. reappointment and if required the replacement or removal of the statutory auditor and the fixation of the audit fees. The Audit Committee was constituted in accordance with the provisions of the Listing Agreement. 1956. Major accounting entries involving estimates based on the exercise of judgment by management. 10. d. sufficient and credible. 3. the quarterly financial statements before submission to the board for approval. about the nature and scope of audit as well as post-audit discussion to ascertain any area of concern. The annual report of the Company contains a certificate by the Managing Director in this regard. if any. 6. Recommending to the Board. in accounting policies and practices and reasons for the same. 7. Changes. reporting structure coverage and frequency of internal audit. Discussion with internal auditors for any significant findings and follow up there on. Reviewing.

Pudumjee appointed w. 2009 and 29th January.To review the functioning of the Whistle Blower mechanism. Mr. K. G. Gupta. wherever required. During the period. Dr. D. During the year only one remuneration committee meeting was held. 2009. Gupta Mr. Sheetal Jhunjhunwala** Mr.f. The Remuneration Committee of the Board recommends the remuneration of the Executive Directors. The Composition of Remuneration Committee and attendance of each member Director. Banerjee and Mr. Yash Krishna**** Chairman Member Member Member Member Member Member 4 4 4 4 4 4 4 Attended 4 2 3 1 4 1 1 Independent Directors viz.f. 2010.12. Chairman of the committee. N. 2009. The remuneration package is governed by the industry pattern and as per the provisions of the Companies Act. The sitting fee is not paid to the Executive Directors for attending the Board meetings or committee meetings thereof. P.e. K. Sheetal Jhunjhunwala resigned w. Four Audit Committee meetings were held on 27th April. 29th September. 29th September. Ramesh Narayan Mr. Remuneration Committee The Company has constituted a Remuneration Committee of the Board to consider the remuneration of the Whole Time Directors which is a part of non-mandatory requirement of the code. Ved Krishna* Dr. Yash Krishna appointed w. 2009. 26th October. 4. The Composition of the Audit Committee and attendance of each member Director. 29th September. G. at the Committee Meetings during the period is as under: Name of Directors Position Remuneration Committee meetings Held Mr. D.e. Banerjee Mrs. **** Mr. Ved Krishna resigned from Audit Committee w. Gupta Dr. ** Mrs. G. 13.Carrying out any other function as is mentioned in the terms of reference of the Audit Committee. 2009. Ramesh Narayan Member 1 1 26 | Yash Papers Limited .f. N. at the Audit Committee Meetings during the period is as under: Name of Directors Position Audit Committee Meetings Held Mr. 19th September. 1956. in case the same is existing. Member 1 1 Chairman 1 Attended 1 * Mr.f. The compensation of Non-Executive Directors is approved at Board Meeting.e. P. N. Pudumjee*** Mr.e. 2009. P. The Remuneration Committee comprises of 3 Banerjee Mr. The necessary approvals were obtained from shareholders. Ramesh Narayan members of the Committee. 29th July. 2009. *** Mr.

The details of remuneration paid to all the directors during the year ended on 31st March.58.000 5.000 18.) Salaries.110 4.000 5.58.58. Remuneration paid (in Rs.000 24. Jhunjhunwala. perquisites and contribution to Provident Fund 20.80. Pudumjee Total * Being wife of Late Mr. N.000 16. Other disclosures relating to shareholder’s aspect has been furnished in the shareholder information section of the annual report.000 32.052 Nil Nil Nil Nil Nil Nil Nil Nil 30.36.000 8.000 8. non-receipt of declared dividends. 2010 are as follows: Name of Directors Service contract/ Notice period Sitting Fees Mr.K. Ved Krishna Mrs.000 5. Banerjee Mr.359 5.000 6.e. The Committee also looks into redressing of shareholders’ complaints like transfer of shares. Ramesh Narayan Mr. Narayana Dr.f. The Committee looks after the performance of the Registrar and Transfer Agent and recommends measures for overall improvement in the quality of investor services.000 1. non-receipt of annual report.000 6.162 Total 22. G.052 28.000 34000 10. P. approves issue of duplicate share certificates and oversees and reviews all matters connected with the securities transfers.000 18. Chakraborty Mr. N. Shareholders’/Investors’ Grievance Committee The Board of the Company has constituted an Executive Committee. 2009.000 34000 10. Sheetal Jhunjhunwala** Mr.34. D. also looks after share transfers. 19th September. inter-alia. which.00. R.000 Nil 28.162 Appointment made for three years Retire by rotation Appointment made for two years Retire by rotation Retire by rotation Retire by rotation Retire by rotation Alternate to Mr.72. credit of shares allotted in the client account etc. Annual report 2009-10 | 27 . Sheetal Jhunjhunwala resigned w. Gupta Mr. amongst others. K.000 24. complaints related to public issues such as refund of application money. Basant Kumar Khaitan Mr.64. Yash Krishna Mrs. Manjula Jhunjhunwala Mr. K. The Committee. Yash Krishna Retire by rotation Retire by rotation Retire by rotation Nil 20. G.000 16. amount paid as pension in the event of his death ** Mrs.

The Mall. Non Executive Independent Director (Chairman) Mrs.208 001 September 29. Re-appointment of Mr. Delisting of Equity shares of the Company from U. Kanpur in terms of Securities and Exchange Board of India (SEBI) (Delisting of Securities) Guidelines. Faizabad – 224 135 Uttar Pradesh India Tel : 91 – 5278 – 326611/12/13/14 Fax : 91 – 5278 .(A) The Constitution of the Shareholders’ / Investors’ Grievance Committee is as follows: Name of Directors Category Number of meetings Held Dr. Civil Lines. 2007 1:00 P. P. Increase the authorised share capital of the Company from 30 crores to 60 crores pursuant to Section 31 of the Companies Act. your Company has opened a Demat Suspense Account with Central Depository Services (India) for transferring 11. The Landmark. Hotel Little Chef. Sachin Kumar Srivastava. 3. Banerjee Non Promoter. 1956. Hotel. Kanpur-208 001 September 26. 2009 and fixing of his remuneration under Sections 198. Independent Executive Director 4 4 4 4 4 Attended 4 (C) Number of complaints received and redressed during the year 2009-10 Opening balance 0 Received during the year 2009-10 10 Resolved during the year 10 Closing balance 0 (D) Suspense account for the unclaimed shares Pursuant to Clause 5A of the Listing Agreement. 1956 and Clause 4 of Article of Association of the Company. Chakraborty Non Promoter. Civil Lines. R. 2003. 15/198. Hotel Little Chef.965 shares which remained unclaimed out of shares issued pursuant to the public issue offer. Manjula Jhunjhunwala Promoter. is the Compliance Officer and can be contacted at: Yash Papers Limited Yash Nagar. P. Assistant Manager Secretarial. N. Non Executive Director Mr. 2008 1:00 P. 2. 15/198. B) Name and Designation of the Compliance Officer Mr. 309 and 311read with Schedule XIII. 2009 1:00 P.M.M. Stock Exchange Limited.258062 E-mail : scn@yash-papers. General Body Meetings Location and time of Company’s Last 3 AGM’s with details of special resolutions passed: Date Time Venue June 30. Managing Director for a period of 3 years with effect from 1st August. Ved Krishna. 269. of the Companies Act. 6.M. Kanpur .208 001 1. Kanpur .com Details of Special Resolutions passed in the AGM 28 | Yash Papers Limited .

yash-papers. potentially conflicting with the Company’s interests at large. The Company has complied with the requirements of mandatory provisions of the Corporate Governance as required under Clause 49 of the Listing Agreement and has not adopted few non-mandatory requirements thereof. 2009 and the Ordinary Resolution was passed by a majority of 95.76. Adesh Tandon of M/s Adesh Tandon & Associates. present and future and whole of the undertaking(s) of the Company was put through Postal Ballot. Managing Director and the Chief Financial Officer certified to the Board on their review of Financial Statements and Cash Flow Statements for the financial year ended March 31. Related Party transactions are disclosed in the notes to the Accounts forming part of this annual report (Schedule 17). the Company does not have whistle blower policy. c.Postal Ballot During the year ended 31st March.e.sebiedifar. Annual report 2009-10 | 29 . Practicing Company Secretaries as Scrutiniser to conduct the Postal Ballot in respect of the said Ordinary Resolution. The Company has framed code of conduct for prevention of Insider Trading based on SEBI (Insider Trading). SEBI Regulation on Takeover. CEO/CFO Certification The Managing Director and Chief Financial Officer have certified to the Board in accordance with Clause 49(V) 9.corpfiling. Hindustan / Rashtriya Sahara ( Kanpur edition ).in. http://www. There are no significant Related Party Transactions during the financial year ended on March 31. g. The Postal Ballot notice was sent to each shareholder as on the cut off date decided.331 0 b. where displayed Compliance Published in leading newspapers. The Company complied with the requirements of the Stock Exchanges/ SEBI/ Statutory Authorities on all matters related to the capital market during the last 3 years. The Board appointed Mr. The text of the said report is annexed elsewhere. 8.21% of the total valid votes polled. d. 2010. for mortgaging and / or charging of all or any of the immovable and or movable properties of the Company wheresoever situate. Based on the report submitted by the There were no penalties or strictures imposed on the Company by the Stock Exchanges or SEBI or any statutory authority relating to the above. 2010 in the form prescribed by Clause 49 of the Listing Agreement which is annexed. Listing Agreement. 2010 of material nature. Number of valid postal ballot forms received Votes in favour of the Resolution Votes against the Resolution Number of invalid postal ballot forms received 172 76.813 3. As per Clause 49(V) of the Listing Agreement. e. f. Business Standard/ Economic times (All editions ) http://www. the result of Postal Ballot was declared on December 24. Disclosures a.86. with its http://www. Presently. 1956. Means of Communication Recommendation Quarterly Results Which newspapers normally published in Any Website. The Company has obtained Secretarial Audit Report from the Company Secretary in Practice for compliance with the applicable provisions of the Companies Act. the Directors or the management or their subsidiaries or relatives etc. This code is applicable to all Directors and designated employees having access to unpublished price-sensitive information. the Chief Executive Officer i. the Ordinary Resolution for seeking approval under Section 293(1)(a) of the Companies Act. SEBI’s EDIFAR (Electronic Data Information Filing And Retrieval) Whether it also displays official news releases and presentations made to institutional investors/ analysts No 7. Insider Trading and Depositories & Participants.

000 100 2. 2011.000 100.000 2.000 0. Faizabad (UP) – 224 135 NIL 11.499 As on 31-03-2009 Number of % to shares shares 82.22. 6th September.428 0. 12. Okhla Industrial Area. 13. D-153/A.397 1. 2009 to 31st March. New Delhi – 110 020 Tel No.00. 2010 at 1.11.: (011) 26292680/81/82/83 Fax No. (05278) 326611-14.004 0. (05278) 258062 E-mail : info@yash-papers.40. if the documents being valid and complete in all respects.121 13. 15/198.10. NRIs / OCBs Total 14. Faizabad -224 135 (U. Individuals The Share transfers in physical form are presently processed and the Share Certificates returned within a period of 15 days from the date of receipt. Demat ISIN Numbers of Equity Shares in NSDL & CSDL .456 1. 2010. P. The shares are available for trading with both the depositories namely.179 0.000 100.437 0.26. Phase – 1. Annual General Meeting Date and Time Venue 2. 2. 1st Floor. Share Transfer System 18. Mutual Funds and UTI 3.011 1. Banks. 2010 to 8th September.786 1.00.004 0. conversion date and likely impact on equity Plant Locations Addition to Equity Share Capital during the period ended on March 31.44. Market Price Data 9.000 100 2. Distribution of Shareholding Separately given as on March 31.926 34.880 5.892 of the issued capital. Corporate Bodies 6.19.40.P. Listing of Equity Shares on Stock Exchanges at: 6. Website Corporate Office YASH PAPERS LIMITED Yash Nagar. Dividend Payment Date 5. Hotel “Little Chef”. Bombay Stock Exchange Limited. 2010 Address for Correspondence 16.e.123 equity shares have been demated.127 60.880 4.80.121 9.281 0. Central/ State Government 5.529 3. 2010. Promoters 2. M.03. BSE Code – 516030 Separately given INE 551D01018 Serial Categories of number shareholders 1. Outstanding GDR/ADR/ Warrants or convertible bonds.000 0. Fax. for 2009 it is from 1st April.386 1. Civil Lines.) Ph. Registrar and Share Transfer Agent Stock Exchange Association Limited. Book Closure Date 4.00 P. Ltd.yash-papers.000 The shares of the Company are compulsorily traded in dematerialised form. U. General Shareholder Information 1. Dematerialisation of Shares As on 31-03-2010 Number % to of shares shares 82. Kanpur – 208 001. NSDL and CDSL. Financial Year 25th September. Shareholding Pattern 30 | Yash Papers Limited 19. Payment of Annual Listing Fees to the Stock Exchanges 7. Financial Institutions 4. 17.11. Kanpur* Listing Fee has been paid to the Stock Exchanges up to March 31. Yash Nagar.704 34. NIL 15. representing 97. Skyline Financial Services Pvt. 2010. www. : (011) 26292681 Email: admin@skylinerta. Stock Code 8. Mumbai 2.90.752 58. As on 31st March. 2010 ( both days inclusive ) Dividend has not been recommended by the Board 1.33. Financial Year of the Company is from 1st April to 31st March of each year i.

688 1.06 6.323 1.284 2.09 0.61. Renu Devi Patni Chirayush Pravin Vakil Angel Broking Limited Sarla Argal No.64 0.00 6.69 5. 7.00 6. 24 crores respectively as on March 31.98 2. 6.31 10.000 % to total 12. 2010.34 4.98.300 2.508 2.50.38 100.000 % 1.00.83 0.34.) 5. Mumbai) Month April 2009 May 2009 June 2009 July 2009 August 2009 September 2009 October 2009 November 2009 December 2009 January 2010 February 2010 March 2010 High (Rs.12 0..121 1.37.42 16.806 4. of Shares held 3.37.* The Company has applied for voluntary delisting of its equity shares from the U. 4.32 4. Ser.883 972 283 129 141 193 163 17.11.75 0.02 5. P.46 3.33.980 1.664 24.00 Top Ten Shareholders as on 31st March.076 15.45 5.70. The Company has increased its authorised capital by Rs. 9.982 2. 10.94 100.40 7. 2.12 6.06 1.272 % to total 72.54.00 Equity share held Number 29. Stock Exchange Limited.87 0.10000 10001 and above TOTAL Capital of the Company The authorised and paid-up capital of your Company are Rs 60 crores and Rs.946 7.65 0.150 6.56 7.01. P.82 1. 3. 2003 and U.209 1.48 0.891 2.09 1. Kanpur has granted its approval through its Letter No. Stock Exchange Limited.00 5001 .63 1. 30 crores during the year.74.40.UPSE/200910/Listing/1116 dated June 28.99 57.59 7.10 8. Name of the Shareholders 1.50 6.75.) 3.31 5. 5.42 Stock Prices (at Bombay Stock Exchange Ltd.93 7. S Sathya Karan Patni Sangeetha S Damodar Prasad Agarwal United India Insurance Company Limited Motilal Oswal Fin.98 9. The Company has not changed it’s paid up share capital during the year under review. 2010 (Excluding Promoters’ Group) S.55.70 6. Ltd.39 1. Kanpur as under the SEBI (Delisting of Securities) Guidelines.688 7.20 5.332 1.28 Low (Rs.88 8. 2010.31 6.28.76 7.61.70 7.88 0. Distribution of Shareholding as on March 31. No. 2010 Number of equity shares held Upto 501 1001 2001 3001 4001 500 1000 2000 3000 4000 5000 Shareholders Number 12.333 2. Annual report 2009-10 | 31 .81 5. 8.53 0.

Parthasarathi Mukhopadhyay (Chief Financial Officer) DECLARATION REGARDING COMPLIANCE TO CODE OF CONDUCT I hereby confirm that the Company has adopted code of conduct for the Board of Directors and Senior Management of the Company. In our opinion and to the best of our information and explanations given to us and representation made by the Directors and the management. illegal or violative of the Company’s code of conduct. there has not been any significant change in accounting policies during the year requiring disclosure in the notes to the financial statements. It is neither an audit nor an expression of opinion on the financial statements of the Company. Chief Financial Officer responsible for the finance function certify that: a) We have reviewed the financial statements and cash flow statement for the year ended 31st March. Deficiencies in the design or operation of such internal controls. 2010 which are fraudulent. ii) these statements together present a true and fair view of the Company’s affairs and are in compliance with existing Accounting Standards. 2010 32 | Yash Papers Limited For Yash Papers Ltd. in compliance of the requirements of Corporate Governance. d) We have indicated to the auditors and the Audit Committee: i) That. no transactions entered into by the Company during the year ended 31st March. there has not been any significant change in internal control over financial reporting during the year under reference.CEO and CFO Certification We. 2010 Ved Krishna Managing Director Auditors’ certificate To The Members of Yash papers Limited We have examined the compliance of conditions of Corporate Governance by Yash Papers Limited for the year ended on 31st March. Our examination was carried out in accordance with the Guidance Note on certification of Corporate Governance (as stipulated in Clause 49 of the listing Agreement) issued by the Institute of Chartered Accountant of India and limited to procedures and implementation thereof. For Yash Papers Limited Place : Faizabad Date : 12th August. For Yash Papers Ltd. 2010 as stipulated in Clause 49 of the Listing Agreement of the said Company with Stock Exchange(s) in India. adopted by the Company for ensuring the compliance of the conditions of the Corporate Governance. of which we are aware have been disclosed to the auditors and the Audit Committee and steps have been taken to rectify these deficiencies. c) We accept responsibility for establishing and maintaining internal controls for financial reporting and we have evaluated the effectiveness of internal control systems of the Company pertaining to financial reporting. Ved Krishna. I hereby declare that the Board of Directors and Senior Management personnel have affirmed compliance with the code of conduct of the Company. to the best of our knowledge and belief. We state that no investor grievances pending for a period of one month against the Company as per the records maintained by the Company and presented to the Shareholder’s/Investor Grievance Committee. Ved Krishna (Managing Director) Place : Faizabad Date : 12th August. applicable laws and regulations. we are not aware of any instance during the year of significant fraud with involvement therein of the management or any employee having a significant role in the Company’s internal control system over financial reporting. b) That are. and iii) That. if any. Managing Director and Parthasarathi Mukhopadhyay. . ii) That. The Compliance of conditions of Corporate Governance is the responsibility of the management. 2010 and that to the best of our knowledge and belief: i) these statements do not contain any materially untrue statement or omit any material fact or contain statements that might be misleading. we certify that the Company has complied with the conditions of Corporate Governance as stipulated in the above mentioned Listing Agreement.

The Company has not appointed any sole selling agent in terms of section 294 of the Act during the year. The proceedings of the Meetings were properly recorded in the Minutes Books during the year. In our opinion and to the best of our information and according to the examinations carried out by us and explanations furnished to us by the Company.03. Chartered Accountants Place: Faizabad Date: August 12. 6. The Company has delivered all the certificates on lodgment thereof for transfer or any other purpose in accordance with the provisions of the Act during the year. The Company has complied with the applicable provisions of SEBI (Substantial Acquisition of Shares and Takeover) Regulations. 18. Skyline Financial Services Private Limited. 60. The Company has complied with the provisions of section 154 of the Act during the year. 2010 (Rajesh Parasramka) Partner Membership No. The Company has not given any loan in terms of section 295 of the Act during the year.00. The Company has complied with the provisions of section 58A of the Act read with Companies (Acceptance of Deposit) Rules. 5. Faizabad – 224 135 (Uttar Pradesh) produced before us by the Company and by their registrar and share transfer agents M/s. 1975 during the year. which falls under section 297 of the Act during the year. 2010 Adesh Tandon FCS No.. 1997 during the year. The Company has received 10 investor’s complaints/queries during the year under review and no complaints/ queries were pending for redressal as on 31. 2253 CP No. The Company has not appointed any person as a place of profit in terms of section 314 of the Act during the year. 20. 1956 (the Act) and the rules made there under and all entries therein have been duly recorded during the year. Annual report 2009-10 | 33 .2010. The Company has complied with the applicable provisions of SEBI (Depositories and Participants) Regulations. : 20-5294 Nominal Capital : Rs. The Company has not entered into any transactions. The Company has given proper notice along with the agenda for convening of Board Meeting. Adesh Tandon & Associates Company Secretaries Place: Faizabad Date . The Company has complied with the applicable provisions of SEBI (Prohibition of Insider Trading) Regulations.We further state that such compliance is neither an assurance as to the future viability of the Company nor the efficiency or effectiveness with which the management has conducted the affairs of the Company.00. The Board of Directors of the Company is duly constituted during the year. 9. 8. 10.12th August. The Company has transferred the unclaimed/unpaid dividend to Investor Education and Protection Fund in compliance with the provisions of section 205C of the Act during the year.03. Committee Meetings and Annual General Meeting during the year. 1121 SECRETARIAL AUDIT REPORT Company No. 16. The Company has paid remuneration to the Managing Director. 14. 19. 22.74192 7. 3. 12.309 read with Schedule XIII of the Act. for the purpose of our Secretarial Audit Report for the financial year ended on 31. The Shareholders of Yash Papers Limited We have audited the relevant books and records of Yash Papers Limited having its Registered Office at 47/81.000/To. 13. For KAPOOR TANDON & Co. The Directors have disclosed their interest in terms of section 299 of the Act. 21. 11. Commission to the nonexecutive independent directors and sitting fees to the Directors of the Company in terms of section 198. its officers and agents. Kanpur – 208 001 (Uttar Pradesh) and Corporate Office at. Yash Nagar.2010 (financial year). The Company has not declared any dividend during the year. we certify that in respect of the aforesaid financial year: 1. The Company has duly filed the forms and returns with the Registrar of Companies and the rules made there under during the year. The Company has kept and maintained all registers and records as per the provisions of the Companies Act. The Company has obtained all the necessary approvals from the Board and Shareholders as required by the Act during the year. Hatia Bazar. Yash Papers Limited. The Company has complied with the provisions of section 372A of the Act. 1992 during the year. 2. 15. 269. 17. 4. 1996 during the year.

Statutory Section 34 | Yash Papers Limited .

Auditors’ Report To The Members of Yash Papers Limited We have audited the attached Balance Sheet of Yash Papers Limited as at 31st March. B-21 of Schedule-17 regarding non provisioning of Loss of Rs. in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India:f. in the case of the Balance Sheet. 2010 from being appointed as Director in terms of Section 274 (1)(g) of the Act. In our opinion and to the best of our information and according to the explanations given to us. 2010 Rajesh Parasramka Partner Membership No. evidence supporting the amounts and disclosures in the financial statements. In our opinion. 000952C i. The Balance Sheet. 270. on a test basis. ii. 2010 and also the Profit and Loss Account and the Cash Flow Statement for the financial year ended on that date annexed thereto. 158. 1. 2003 (the Order) issued by the Central Government of India in terms of Section 227(4A) of the Companies Act. Annual report 2009-10 | 35 Camp : Faizabad Date : August 12. c. of the Profit of the Company for the financial year ended on that date . Note no. in the case of the Profit and Loss Account. 2. Chartered Accountants g. give the information required by the Act. As required by the Companies (Auditors' Report) Order. We believe that our audit provides a reasonable basis for our opinion. These financial statements are the responsibility of the Management of the Company. 2010. We draw reference to: Note no. Further to our comments in the annexure referred to in paragraph 2 above. none of the Director is disqualified as on 31st March. were necessary for the purposes of our audit.48 lacs from Certified Emission Reductions (CERs) accrued for the financial year ended March. in the case of the Cash Flow Statement.. 2010 and taken on record by the Board of Directors. and iii. Those Standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. of the state of affairs of the Company as at 31st March.95 lacs in respect of disputed Derivative (Structured USD/CHF Option) transaction. In our opinion. as well as evaluating the overall presentation of the financial statements. read together with the Notes thereon. We conducted our audit in accordance with auditing standards generally accepted in India. proper books of accounts as required by law have been kept by the Company so far as appears from our examination of these books. we report that: a. For Kapoor Tandon & Co. . We have obtained all the information and explanations which. assessing the accounting principles used and significant estimates made by management. to the best of our knowledge and belief. Profit and Loss Account and Cash Flow Statement dealt with by this report are in agreement with the books of account. On the basis of written representations received from the directors as on 31st March. d. we annex hereto a statement on the matters specified in paragraphs 4 and 5 of the said Order. Our responsibility is to express an opinion on these financial statements based on our audit. the said accounts. 2010. An audit includes examining. 1956 (the Act). Profit and Loss Account and Cash Flow Statement dealt with by this report comply with the applicable Accounting Standards referred to in Section 211 (3C) of the Act. of the cash flows for the financial year ended on that date. e. the Balance Sheet. 3. An audit also includes. b. 74192 Firm Registration No. B-20 of Schedule-17 regarding income of Rs.

a) In our opinion. The Company has not disposed off substantial part of fixed assets during the year. In our opinion. the discrepancies noticed on verification were not material in relation to the operations of the Company. In our opinion. The inventories of the Company have been physically verified by the management at regular interval during the year. No material discrepancies have been noticed in respect of the assets physically verified during the year. As explained to us. prima facie. to companies. Custom Duty. Excise Duty. not prejudicial to the interest of the Company. the transactions made in pursuance of such contracts or arrangements have been made at prices which are reasonable having regard to the prevailing market prices at the relevant time.51 lacs from 12 such parties. In our opinion. b) c) ii. prima facie. b) iv. particulars of contracts or arrangements referred in Section 301 of the Act have been entered in the register required to be maintained under that section. a) The Company has maintained proper records showing full particulars. including quantitative details and situation of its fixed assets. Wealth Tax. the Company is generally regular in depositing undisputed Statutory dues including Provident Fund. the frequency of verification is reasonable. Sales/Trade Tax. The Company has taken interest free unsecured loan from a Director. the prescribed records have been made and maintained. vii. 35. The Company is regular in repaying the principal amount and interest. made a detailed examination of the said accounts and records with a view to determine whether they are accurate or complete. secured or unsecured. a) b) c) d) e) 36 | Yash Papers Limited . the Company has complied with the provisions of Section 58A and 58AA of the Act and the rules framed there under for the deposits accepted from the public. Further.00 lacs. The year-end balance was Rs. (b). the Company has an internal audit system commensurate with the size of the Company and nature of its business. Investors Education and Protection Fund. We have not. the procedures of physical verification of inventories followed by the management are reasonable and adequate in relation to the size of the Company and nature of its business. the terms and conditions on which loans have been taken are. In our opinion. Income Tax. on the basis of our examination and according to the information and explanations given to us. having regard to the size of the Company and the nature of fixed assets. In our opinion. Further to aforesaid the Company has accepted fixed deposit from Director(s) and other parties listed in the register maintained under Section 301 of the Act.Annexure to the Auditors’ Report (Referred to in paragraph 2 of our report of even date on the financial statements for the financial year ended 31st March. We have broadly reviewed the books of account and records maintained by the Company pursuant to the Rules framed by the Central Government for the maintenance of cost records under Section 209(1)(d) of the Act and are of the opinion that. v. which in our opinion is reasonable. ix a) According to the books and records produced and examined by us. The Company is maintaining proper records of inventories. a) b) vi. 2010 of Yash Papers Limited) In terms of the information and explanations given to us and also on the basis of such checks as we considered appropriate. In our opinion. Accordingly. fixed assets and for the sale of goods and services. In our opinion. c) iii. The Company has not granted any loan. All the fixed assets have not been physically verified by the management during the year but there is regular programme of physical verification. however. the provisions of clause iii. Service Tax. (c) and (d) of the Order are not applicable to the Company. viii. there is adequate internal control system commensurate with the size of the Company and nature of its business for the purchase of inventory. The maximum amount and year-end balance of such loan was Rs. we have neither come across nor have been informed of any continuing failure to correct major weaknesses in the aforesaid internal control system. we state that: i. 19. firms or other parties listed in the register maintained under Section 301 of the Act. 2010 for a period of more than six months from the date they become payable. Cess and other material statutory dues as applicable with the appropriate authorities and no undisputed amount payable in respect of aforesaid statutory dues were outstanding as at 31st March.

xii. In our opinion. As the company has not raised any money by way of public issue during the year. Accordingly. The Company has not granted any loans and/or advances on the basis of security by way of pledge of shares. Income Tax. Allahabad Commissioner of Income Tax (Appeal). xiv. debentures and other securities. clause xx of the Order is not applicable to the Company. the Company is not a chit fund and nidhi / mutual benefit fund / society. The Company has not given any guarantees for loans taken by others from banks or financial institution. xxi. New Delhi CESTAT. Accordingly. xvii. Camp : Faizabad Date : August 12. The Company has not incurred any cash loss in the current financial year as well as in the immediately preceding financial year. there are no dues of Sales Tax. in our opinion. except mentioned as below: Name of the Statute The Central Excise Act. Kanpur xv. xix. Wealth Tax. Chartered Accountants x. the provisions of clause xiii of the Order are not applicable to the Company. Based on the audit procedures performed and according to the information and explanations given to us. the provisions of clause xiv of the Order are not applicable to the Company.05 12. in Lacs) 0. no fraud on or by the Company has been noticed or reported during the year. 000952C Annual report 2009-10 | 37 . Cess and Service Tax which have not been deposited on account of any dispute. Excise Duty. The Company has accumulated losses of Rs. Based on the information and explanations given to us and on an overall examination of the Balance Sheet of the Company. the Company has not defaulted in repayment of dues to financial institutions and/or banks during the year. xviii. According to the information and explanations given to us. The Company has not issued any debentures during the year. In our opinion. 1961 Interest and other Income earned out of public issue proceeds assessed as Income from Other Sources Amount (Rs. New Delhi Commissioner of Central Excise (Appeal). 168.25 1.. 74192 Firm Registration No. there are no funds raised on a short term basis which have been used for long term investment. the term loans have been applied for the purposes for which they were obtained. xiii.b) According to the information and explanations given to us. xvi.27 lacs which is not more than 50% of its Net Worth. 2010 Rajesh Parasramka Partner Membership No. The Company is not a dealer or trader in securities. xi.50 Year(s) to which relates 1995-96 2004-05 & 05-06 2007-08 2006-07 Forum where pending CESTAT. xx. For Kapoor Tandon & Co.As the company has not made any preferential allotment of shares during the year. Custom Duty. clause xviii of the Order is not applicable to the Company. 1944 Nature of the dues Penalty Service Tax on GTA (Freight) Disallowance of CENVAT Credit Income Tax Act.17 1.

384 850.247.058. Mukhopadhyay Chief Financial Officer 38 | Yash Papers Limited . Loans and Advances Total 'A' Less: Current Liabilities and Provisions a.063 – 1.280.633 159.886.475.705.771.000.974 5.520.245.273 66. Chartered Accountants Rajesh Parasramka Partner Membership No. Unsecured Loans 3. Inventories b.967.609.631 1.185 208. Capital b.038.565.032 230.454 122.078 162. Miscellaneous Expenditure (To the extent not written off or adjusted) Authorised Capital Increase Fee Total Significant Accounting Policies and Notes on Accounts The Schedules referred to above form an integral part of the Balance Sheet. Gross Block b.990.379 1.955.302.447.831.031. Fixed Assets a.082. Investments 3. Deferred Tax Liability (See Note no.935 178. Other Current Assets e.600.973 9. Current Assets.314.015 14.964 257.384 240.095 135.047.313.314.708. Shareholders' Funds a.055 318.287 875.000 Provisions Total 'B' Net Current Assets (A-B) 4. For Kapoor Tandon & Co.313.770 1.946. 2010 Schedule No.220. Chkraborty Executive Director P. Net Block d.107 2.000 55.935 11 12 For and on behalf of the Board R.622.000 1. As per our report of even date attached. 74192 Camp: Faizabad Date: August 12. Current Year ended 31-03-2010 Amount in Rupees Previous Year ended 31-03-2009 SOURCES OF FUNDS 1. Capital Work in Progress 2.139 65. Loans and Advances a.695.506.302. APPLICATION OF FUNDS 1. As at 31st March. Less: Depreciation c.396.357 5 1.736.676 6.569.504 9.481.171 41.013 921. 2010 Ved Krishna Managing Director 1 2 3 4 240. Liabilities b.000 1.289 5.Balance Sheet I.589.658 4.000 35. Loan Funds a.448 1.160 367.519 362.357 17 1.326 13.000.298 6 7 8 9 10 188.525.067 1.893.895 370.334.771.610. Cash and Bank Balances d. B-18 of Schedule 17) Total II.749 78.077. Sundry Debtors c.965 137.287 1.000 121. Reserves and Surplus 2.398.247. N. Secured Loans b.

040) 874.980 904.310 249.785.861.563 547.671 42.000 241.Basic and Diluted (Nominal value .389 861.565) (16.410 201. 74192 Camp: Faizabad Date: August 12.113) (21.711) 23.762.382 (29.621.116.711) 500.433 41. PROFIT/(LOSS) AFTER TAX Income Tax relating to earlier year Credit/(Debit) Balance of Profit/(Loss) Balance brought forward from Previous Year 5. Depreciation on Fixed Assets Total 'B' 3.827.371 (17.000. Sales Less: Excise Duty For the year ended 31st March.482.827. 838. Selling and Distribution Expenses c.565) – (17.339.410 24.820. Increase/(Decrease) in Stocks Total 'A' 2.565) (21.Rs.950. Manufacturing. Chkraborty Executive Director P. As per our report of even date attached.729.040 (3. 10/.000 0.768 576. 2010 Ved Krishna Managing Director 15 16 (A) (B) (A/B) 17 860.824) 3.92) 813.194) – (16. 2010 Schedule No. of equity shares EPS .257 25.891.163 860.741. Other Income c.888.194) b.509.900 1.036.302. PROFIT/(LOSS) BEFORE TAX (A-B) Provision for Taxation – Current Tax – Deferred Tax 4.621.000 860.711) (15.353.054.488.410 (66.488 6.634 62.621. For Kapoor Tandon & Co.070 43.494.174 63. Raw Material Consumed b. Mukhopadhyay Chief Financial Officer Annual report 2009-10 | 39 .000 (8.04 For and on behalf of the Board R.824 13 14 Current Year ended 31-03-2010 Amount in Rupees Previous Year ended 31-03-2009 880.069. EXPENDITURE a. PROFIT AVAILABLE FOR APPROPRIATION Appropriations Balance carried to Balance Sheet 6.900.671 265. INCOME a.478. EARNING PER SHARE (EPS) Net Profit/(Loss) Weighted average no.039) 794.Profit and Loss Account 1.737 (0.155.399 836. Chartered Accountants Rajesh Parasramka Partner Membership No.934.885.per Share) Significant Accounting Policies and Notes on Accounts The Schedules referred to above form an integral part of the Profit and Loss Account.259 (17.011. Administrative.000) (21.494. N.921.

384 6.028 – 55.500 37.000.000 (2.10/.Schedules forming part of Balance Sheet Amount in Rupees As at As at 31-03-2010 31-03-2009 Schedule 1 SHARE CAPITAL 560. Capital Reserve Balance as per last Account Add: Forfeiture of Preferential Warrant Money B.40.60.013 A.000.000 240.172.028 40 | Yash Papers Limited .60.322.528 1. Securities Premium Balance as per last Account Add: Received during the year C.00.000 300.087.000 Equity Shares have been allotted as fully paid up Bonus Shares by capitalisation of reserves Total 240.000) Equity Shares of Rs.000.565 121. Subscribed and paid up 2.000 Equity Shares of Rs. General Reserve Balance as per last Account Less: Debit Balance in Profit & Loss Account As per account annexed Total 6. 10/.000.000.827.000 40.050 77.806 122.000 Authorised 5.550 6.378.000 260.000.100/.621.000 Schedule 2 RESERVES AND SURPLUS 6.322.819.000 240.194 38.550 – 77.500 732.520.000 240.000.314.each 4.each Total Issued.00.000 75.000 Preference Shares of Rs.000 600.000.000.000 40.each fully paid up Of the above : 568.887.322.00.435 55.550 77.434.

112.308 142.00. personal guarantee of two Directors.980 – 120. corporate guarantee of two companies.981 129.691 135. of entire fixed assets (both present and future). to Banks .071 121.501 498. plant and machinery and other immoveable properties (both present and future) and equitable mortgage of land and building. ranking pari-passu. finished goods.687 183.00.703.910. ranking pari-passu.889 30.of entire current assets (both present and future).144 29.hypothecation. consumable stores and spares and other current assets (both present and future). 1097.770 2.000 (USD 18. 876.hypothecation.079.29 Lacs) being FCNR(B) Demand Loan of USD 10. FOR WORKING CAPITAL LOANS to Banks .for (e) hypothecation of vehicle financed.of book debts. Term Loans From Banks a) United Bank of India b) Oriental Bank of Commerce c) Union Bank of India d) UCO Bank e) State Bank of India B.43 Lacs (Rs. stock in process.hypothecation.454 272. pledge of equity shares held by a company and Managing Director and personal guarantee of Managing Director.of fixed assets.Schedules forming part of Balance Sheet Amount in Rupees As at As at 31-03-2010 31-03-2009 Schedule 3 SECURED LOANS A. Working Capital Loans a) State Bank of India b) Oriental Bank of Commerce Total Note: 1. FOR TERM LOANS to Banks .680. Annual report 2009-10 | 41 .082. Term Loans repayable during next 12 months are Rs.04 Lacs) 243. B. 1076.for (a) to (d) first charge .981.831.762 850. second charge . DETAILS OF SECURITY GIVEN AGAINST LOANS A.879 921.934 158.784.397 204. ranking pari-passu.for (a) to (b) first charge-hypothecation. ranking pari-passu.886.000). second charge . stock of raw materials.505.078. Working Capital Loan from SBI include Rs.31 Lacs (Rs.850. 457.448.

767 6.565 5.504 A.031.913 4.663 Intangible 10.996 1.889 63.442 258.576.377 177.519 3.156.364.044 26.542 24. 9.266.532.146 – – – 1.663 97.593 – – – – 14.142 3.905.03.417 1.120 149.965 779.000 24.302 197.077.298 4.529 19.230/. 6.822 2.000 20.055 1.137 1.094 19.631 3.039 4.306 199.857 19.116 50.20.143 20.860.902 23.504 3.450 7.248.131 7.593 12. 46.848.916. 7.607 4.951 444.142 – 4.832 98.217.686 601.304.343.569.519 16. Nil (Rs.456 – 14.551 4.Schedules forming part of Balance Sheet Amount in Rupees As at As at 31-03-2010 31-03-2009 Schedule 4 UNSECURED LOANS 21.046 – 15.324.2010 Upto 31.447.570 4.131.589 670.151.403.661.444.837. Other Loans From a Director Total Schedule Description of Assets Tangible 1.924 948.879.2010 NET BLOCK As at 31.411 2.478.761 906. 6.137.980 – 2.042 24.830 318.087.676 1.031.627 46.859 222.267 976.089.471 600.720 6.433 5.746 3.975 4.841.589.670.581.058.62. 4.622.790 74.773.629 30. 85.306 414.287 10.745.418 246.2009 Additions Sales/ discarded As at 31.336.009.044.184 5. 5 FIXED ASSETS GROSS BLOCK As at 31.350.03. Computer Software Total Previous Year Capital Work in Progress (Including Rs.586.919. 8.03.964 1.500.512 915.134 77.03.476 1.303.722.575.656.(Rs. 3.691.945.705.520 9.697.2010 As at 31.136.398.970 2.216 1.408.121.069.384.335.140 4.652.955.283.453.369.610.984 9.911 667. Land Lease Hold Factory Building Non Factory Building Plant & Machinery Electric Installation & Fittings Furniture & Fittings Office Equipment Motor Car & Other Vehicles 20.916.561 2.849 741.378 10.03.859.243 1.2009 DEPRECIATION For the year Deduction/ Adjustment Upto 31.163 62.615.137 2.005 1.658 – 42 | Yash Papers Limited .497.031.077.705 155.500.393.167.520.572 – 8.324. Fixed Deposits [Repayable within one year Rs.834.967.186.921.672 22.046 1.658 1.379 257.01 lacs) towards advances for capital expenditure).334.2009 Land Free Hold (incl.333. 99.237 28.821.008.145 2.266 3.704.522 – 8.967.697. 5.398.879. Site Development) 12.489.090 4.235/-)] B.941 257.466 – 15.707 1.018.964 2.377 177.068 526.334.255 994.178 2.964 437.267 987.086 119.924.569.600.03.

10/.398 3.749 (As taken.935 4.000 1.221.893.397.490 593. Import Entitlements/licence (DEPB) Total Annual report 2009-10 | 43 .140 49.976 19.204.500.500.each fully paid up Rama Newsprint & Papers Ltd.605 Schedule 7 INVENTORIES 100.each fully paid up Rana Mohindra Papers Ltd.609.204.966 11.10/.927 3.992.each fully paid up Total Total cost of quoted investments Aggregate Market value of quoted investments 4.273 87.704 215. Raw Material F. 100 Equity Shares of Rs.049 4. 100 Equity Shares of Rs.each fully paid up Mukerian Papers Ltd.000 567.578.Schedules forming part of Balance Sheet Amount in Rupees As at As at 31-03-2010 31-03-2009 Schedule 6 INVESTMENT (Non trade) .376. Loose Tools C.324. Pulp E. 100 Equity Shares of Rs. Scrap H.586 1.511 188.965.654. 100 Equity Shares of Rs.935 5.10/.609 11.114 58.205. Stores and Spares B.400 380 600 555 5.954 13.935 5.10/.Quoted Long Term Investments Pudumjee Pulp & Paper Mills Ltd.935 2.170 4. Finished Goods D. Work in Process G. valued and certified by the management) A.598 178.400 380 600 555 5.

848 3.990.659 10.612 15.848 14.956.133 92.273.405 12.272 1.857.139 Schedule 10 LOANS AND ADVANCES (Unsecured .203.280.Schedules forming part of Balance Sheet Amount in Rupees As at As at 31-03-2010 31-03-2009 Schedule 8 SUNDRY DEBTORS 61.731 66.881 905.263 239.895 52.653.000 55. Stamps/Cheque in hand B.255 2.255 12. Advances recoverable in cash or in kind or for value to be received B.602 598.220.015 (Unsecured .000 2.480.772 11.738 35.076.904 78.092.772 14.747.346 239.565.700.018.262 9. Unpaid Share Application Money Account Total 946.595 66.considered good) A.902 93. Balance With Scheduled Bank on i. Current Accounts ii.344.673.133 474.928. Fixed Deposit (Margin Money) iii.326 4.695.229 1.085.755.957 11. Cash Balances i.171 A.569 3. Security Deposits C.111 73.296. Cash in hand ii. Advance Income Tax less provisions Advance Tax (including FBT) Less: Provisions Total 44 | Yash Papers Limited 32. Unpaid Dividend Accounts iv.160 .considered good) Over six months Other debts Total Schedule 9 CASH AND BANK BALANCES 945.725.734 13.738 9.901.

281 159. Security Deposit from Customers E.131 1.006 2.620.773 2. Unpaid Share application money C. Investor Education and Protection Fund (No amount is due for transfer) i.401 135.051.710 Schedule 12 PROVISIONS For Excise Duty For Gratuity For Leave Encashment Total 18.396. 563.000 11.739. Unclaimed Dividend 905.965 Annual report 2009-10 | 45 .445.991.976 19.622.100.094 980.139 3.492.704 1.Schedules forming part of Balance Sheet Amount in Rupees As at As at 31-03-2010 31-03-2009 Schedule 11 LIABILITIES A.276.250 239.107 1.034 1.081.682 271.800 162.848 11.708. Unclaimed Matured deposits iii.000 11.368 503.900. Interest accrued on unclaimed matured Deposits iv.874. Sundry Creditors – Due to Micro/Small Enterprises – Other Creditors [Include amounts payable to capital goods supplier Rs. 260.377.994 239.078 15. Interest accrued but not due Total – 119.327. Other Liabilities F.779.848 4.78 Lacs (Rs.246 67.80 Lacs)] B.067 ii.939 – 100.050 13.943 12. Advance from Customers D.

11.375 32.736.293 3.043 6.376.014.319 – 2.900. Work In Process Total 'B' Increase/(Decrease) 'B-A' 11.140 4. Finished Goods ii.895.040 Schedule 14 INCREASE/(DECREASE) IN STOCKS Stock at Commencement i.069.586 28.000 148. I.397.625 41.563 53.170 (Rs. Income from CERs (Certified Emission Reductions) Miscellaneous Income Interest on Fixed Deposit & Others [Including TDS Rs.151 874.238.595.671)] Profit on Fixed Assets sold Self Consumed Export Incentive (DEPB) Dividend on investment (Non trade) Rent Received Exchange Fluctuation Total 27.047.488 Pulp iii.954 13. B.114 3. C.097.204.927 34.44.237 1.694 11. 1. F.397.344 1.544 395.049 249. D.Schedules forming part of the Profit and Loss Account Amount in Rupees Current Year ended Previous Year 31.500 5.992.680 8. Work In Process Total 'A' Stock at Close i.154.040) Schedule 15 RAW MATERIAL CONSUMED Opening Stock Add: Purchases Less: Closing Stock Raw Material Consumed 46 | Yash Papers Limited 58.114 3.654 11.768 .595.861.795 120 24.630 125 43.324. Finished Goods ii.03. Pulp iii.814.948.441.795 3.205.214 299.250 171.289.976 19.398 240.2010 ended 31.398 265.800 42.475.03.586 28.954 13.950.389 30.488. H.205.069.751.654 (3. G.221.382 324. 1.2009 Schedule 13 OTHER INCOME A. E.751 951.204.992.612 49.778.166 58.888 606.376.784 270.

786 5.500 5.174 Annual report 2009-10 | 47 .830 167.615 345.907 2.063 8.551.465.634 24.526.589 36.588 114.748 3.803.394.943 1.739 22.103 1.529.712.750 178.250 184.373 – – – 476.725 – 915.560.500 127.231 271.563.210 3.892 1.161 4.736 1.391 901.676 1.increase/(decrease) Legal and Professional Charges Payment to Statutory Auditors : Audit Fee (including Tax Audit Fee) Other Professional Services Reimbursement of Expenses Cost Audit Fee Bank Charges Interest on: Term Loan and Fixed Deposits Others Directors' Remuneration Travelling and Conveyance Subscription and Donation Commission on Sale .362 1.2010 ended 31.500 58.158 152.814 22.454 2.371.841 3.210 307.244. SELLING AND DISTRIBUTION EXPENSES Salary.016 ( 2.099 5.090 14.134 16.887.496 593.299 205.569 34.774 1.328 554.539 13.914 1.554 5.318.870.other Packing and Forwarding Advertisement Exchange Fluctuation Miscellaneous Expenses Loss on Fixed Assets sold/discarded Bad Debts written Off Loss on Sale of Raw Material Cost of Sales Less: Sales ETP Operation Expenses Total 44.765 547.858 482.396 4.348 1.568 7.070.489 102. Wages and Bonus Contribution to Provident and Other Funds Workmen and Staff Welfare Chemicals Consumed Power and Fuel Consumption of Stores and Spares Rent Printing and Stationery Rates and Taxes Postage.038 41.980.280.03.655 2.556 330.552.725 18.822.497 3. Telegram and Telephone Repairs to : Machinery Building Others Insurance Excise Duty provided on stocks .258.2009 Schedule 16 MANUFACTURING.501.390.896 861.143 357.845. ADMINISTRATIVE.564 458.414.317.221.905 28.907 322.921 3.344.103.629.412.740 724.938) 1.063 1.761.Schedules forming part of the Profit and Loss Account Amount in Rupees Current Year ended Previous Year 31.971 18.414.239 102.932 576.953.687.957.226.125 83.598 28.906 11.110 142.002.761.100.313.631 97.699.583 111.595.432.

Inventories i. if any. if any. SIGNIFICANT ACCOUNTING POLICIES: 1. the Accounting Standards issued by the Institute of Chartered Accountants of India and the relevant provisions of the Companies Act. Raw materials and paddy husk : Weighted Average Cost Work in process: Direct Cost Method (estimated basis) 48 | Yash Papers Limited . the diminution is other than temporary.000/are fully depreciated in the year of addition. the Company estimates the “recoverable amount” of asset. If such recoverable amount of the asset or the recoverable amount of the cash-generating unit to which the asset belongs is less than the “carrying amount”. Use of Estimates The preparation of Financial Statements requires estimates and assumptions that affect the reported amount of assets and liabilities on the balance sheet date and the revenues and expenses during the year. All costs including borrowing costs up to the date of commissioning of related assets and all direct and indirect expenses attributable to the assets are capitalised. 6. incidental pre-operative expenses. (Also refer Para A-12 & A-17 on borrowing costs and CENVAT) 4. Basis of Preparation of Financial Statements The accounts are prepared on accrual basis under the historical cost convention and to comply in all material aspects with applicable accounting principles in India. Difference. net of CENVAT and Subsidy.Schedules forming part of the accounts Schedule 17 SIGNIFICANT ACCOUNTING POLICIES AND NOTES ON ACCOUNTS A. if any. whether there is any indication that an asset may be impaired. the recoverable amount is reassessed and the asset is reflected at recoverable amount. less accumulated depreciation and accumulated impairment losses. 9. Fixed Assets Fixed Assets are stated at cost (of acquisition/construction. [Also refer Para 6 (iii)] 5. For this purpose cost is determined as under: a. iii. borrowing costs and advances for capital expenditure. Inventories other than Scrap and Import entitlements/licence are valued at lower of cost or net realisable value. Impairment of Assets The Company assesses at each Balance Sheet date. 5. 8. between the actual and the estimate is recognised in the year in which the same are acknowledged/ materialised. 7. A provision for diminution is made if in the opinion of the management. Leasehold Land is amortised over the period of lease. The intangible assets are recorded at cost and are carried at cost less accumulated amortisation and impairment losses. Depreciation is provided on pro-rata basis with reference to the date of addition / deletion in respect of addition to/ deletion from fixed assets. Intangible Assets Intangible assets are recognised only if it is probable that the future economic benefits that are attributable to the assets will flow to the Company and the cost of the assets can be measured reliably. b. 3. If at the Balance Sheet date there is an indication that a previously assessed/impaired loss no longer exists. Capital work in Progress Capital work in progress comprises cost of fixed assets not yet commissioned. Depreciation on fixed assets is provided on ‘Straight Line Method’ at the rates specified under Schedule XIV to the Companies Act. ii. If any such indication exists. the carrying amount is reduced to its recoverable amount. Investments Long Term Investments are stated at cost. 1956. Computer Software being intangible asset is amortised over a period of 5 years on “Straight Line Method”. 1956. 2. as the case may be). Depreciation / Amortisation i. Fixed assets costing below Rs.

ii. other than those covered by Forward Exchange Contract. Gains or loss on these assets and liabilities are recognised in the Profit and Loss Account except in case of long term liabilities. A qualifying asset is an asset that requires a substantial period of time to get ready for its intended use. Provision for tax effect of timing difference (i. d. All other borrowing costs are recognised as an expense in the year in which they are incurred. Accounting for Taxes on Income (AS-22) issued by the Institute of Chartered Accountants of India. Exports Incentives (DEPB etc. Taxes on Income Provision for tax on income for the year (i. 1961. Sales are recognised on despatch of goods to customers. based on the evidences available.Schedules forming part of the accounts Schedule 17 SIGNIFICANT ACCOUNTING POLICIES AND NOTES ON ACCOUNTS (Contd. Foreign Exchange asset / liability covered by Forward Exchange Contract are translated at the rate prevailing at the date of transaction as increased or decreased by the proportionate difference between the forward rate and exchange rate on the date of transaction. Provision for leave encashment (treated as short term in nature) is done on the basis of leaves accrued as at the end of the year. 10. Revenue Recognition i. Deferred Tax) is made in accordance with the provisions of the Accounting Standard 22. Provisions. Company’s contributions to Provident Fund and Family Pension Fund are charged to Profit and Loss Account. b. Contingent assets are not recognised in the accounts. iii. Pulp: Direct Cost Method (estimated basis) Finished goods: Direct cost method Stores (excepting paddy husk). Current Tax) is made after considering the various deductions/relief admissible under the Income Tax Act. ii. Contingent Liabilities and Contingent Assets Provisions are recognised in respect of obligations where.) are accrued in the year in which the goods are exported and accounted to the extent considered receivable. 13. their existence at the Balance Sheet date is considered not probable. Annual report 2009-10 | 49 . based on the evidences available.e. Contingent liabilities are disclosed by way of notes on accounts in respect of obligations where.e. their existence at the Balance Sheet date is considered probable.) c. Employee Benefits a. spares and loose tools: FIFO method Scraps and Import entitlements/licence (DEPB) are valued at estimated realisable value. 15. 16. in which case they are adjusted to the carrying cost of respective assets. 12. Sales are net of discount / rebate and sales tax but include Excise Duty. 14. c. d. Termination benefits are recognised as an expense as and when incurred. Borrowing Costs Borrowing costs that are attributable to the acquisition/construction of qualifying assets are capitalised as part of cost of such assets. such difference having been recognised over the life of contract. Foreign Currency Transactions Outstanding foreign currency assets and liabilities. where they relates to acquisition of fixed assets. Government Grants Government Grant related to fixed assets are adjusted with the Gross Block / Cost of fixed assets and Grants of revenue nature is are adjusted with the respective expenditure/ treated as income as the case may be. All other incomes are accounted for on accrual basis. 11. e. Provision for Gratuity is determined on the basis of actuarial valuation at the end of the year and is debited to the profit and loss account each year. are translated at the exchange rate prevailing as on Balance Sheet date.

hence not provided for.03 24. Others b.95 Previous Year (1.48) (32.62 12. loans and advances and other parties have not been received in few cases. if realised. Kanpur v.50 3.13 158. 18. Faizabad iv. 4. Excise duty ii. Guarantee given by Banks d. Commissioner of Income Tax (Appeal). Prior period items.58) (134. Appeals pending with Hon'ble High Court.42) Rs. in the ordinary course of business would not be less than the amount at which they are stated in the Balance Sheet. 3. Claims against the Company not acknowledged as debt: i.97 20. Custom Duty in respect of future export obligation in accordance with Exim Policy c. Disclosure in terms of AS 15 (Employee Benefits): Defined Contribution Plan – Provident Fund and Family Pension Fund Contribution to recognised Provident Fund and Family Pension Fund amounting to Rs. NOTES 1. Nil (Rs.Schedules forming part of the accounts Schedule 17 SIGNIFICANT ACCOUNTING POLICIES AND NOTES ON ACCOUNTS (Contd.Gratuity Company’s Gratuity Trust is administered through the Life Insurance Corporation of India (LIC).) 17.47 NIL 4.85) (5.29) (1. 35.50) (23. The provisions for all known liabilities are adequate and not in excess of amount considered reasonably necessary. Defined Benefit Plan . are shown separately.28 lacs) has been recognised as an expense and included in Schedule 16 “Contribution to Provident and Other Funds”.55) (36. if material. CENVAT credit availed in respect of capital goods is adjusted from cost of assets and in respect of other items is adjusted from related expenses.00 lacs (Rs. Loss on Derivative (Structured USD/CHF option) Above claims are likely to be decided in favour of the Company. Appeals pending with Tribunal/ Jt. Contingent Liability not provided for: a. loans and advances. Commissioner (Appeals). Nil) Rupees in lacs 50 | Yash Papers Limited . Confirmation of balances with sundry debtors/creditors. Trade Tax. B.64) (2. Allahabad iii. Trade Tax. 5. Estimated amount of Contracts remaining to be executed on capital account and not provided for (net of advances) 2. In the opinion of the Board and to the best of their knowledge and belief the value on realisation of the current assets. Contributions are provided on the basis of actuarial valuation as per the Projected Current Year 2. 27.

Expected rate of return on Plan Assets 3.49 (1. Fair value of Plan Assets – B 3.50 – 23.02) 85.11 10. Benefits Paid 7.11 61.02) 80.75 61.75 80.) Unit Credit (PUC) method and included in Schedule 16 “Contribution to Provident and Other Funds”. Current Service Cost 2.95 3. VIII Withdrawal Rate is assumed at 1% to 3% (depending on age) 85. Net Actuarial Losses/(Gains) 5. Expected returns on plan assets 4. Expected Return 3.49 4.37 5. Actuarial Losses/(Gains) 5.11) 63. Contributions by employer 5. Rate of increase in Salaries VI The employees are assumed to retire at the age of 58 years VII The mortality rates considered in accordance with the standard table LIC (1994-96) ultimate. Net Asset / Liability recognised in the balance sheet 1. Closing Defined Benefit Obligation IV Change in fair value of Plan Assets during the year 1. Opening Present Value of Obligation 2.28 14. Expenses recognised in Profit and Loss Account III.68 – (13.92 48.45 63.95 3.10 (1. Plan Amendments 6.21 (13. Current Service Cost 3.04 (1.10 17.05 (4.49 8% 8% 5% Annual report 2009-10 | 51 . Actuarial (Losses)/Gains 4.14 5.11) 61.11 42.71 8% 8% 5% Rupees in lacs 2008-09 63. Interest Cost 4.92) 1.79 3. The details are as under: 2009-10 I.04) (5. Closing fair value of plan asset V Principal actuarial assumptions 1. Net asset/(liability) recognised in Balance Sheet II Expense recognised in Profit and Loss Account 1.37 5.89 (3.42) 15.18 28.42 0. Opening fair value of plan assets 2.70 7. Interest Cost 3.62) (1.89 15.85 5. Discount rate (per annum compounded) 2.92 1. Funded status [Surplus/(Deficit)] 4. Present value of obligations as at the year end 2.04) 10. Change in Present Value of Obligations during the year 1.71 (5. Benefits Paid 6. Past Service Cost (Plan amendments) 6.Schedules forming part of the accounts Schedule 17 SIGNIFICANT ACCOUNTING POLICIES AND NOTES ON ACCOUNTS (Contd.05 3.62) 7.

) 418 (1.293) 429 (Nil) Closing Stock Quantity 458 (418) 1. sales and stocks of finished goods: Class of Goods Kraft and Poster paper Pulp Unit MT MT Opening Stock Quantity Value (Rs.97.977 (Rs. 7. B-2 above and as such no provision is required to be made.) 77.04. 1956 are as under:a. Disclosure in terms of AS 28 (Impairment of Assets) Recoverable amount of the assets or the recoverable amount of the cash generating unit to which the asset belongs is not less than the carrying amount.954 (3.33.505 ( (87.976 (1.753) * Includes 44 MT (11MT) aggregating to Rs. Production.050 (Nil) 1. Capacity Product Kraft.33.319) 1.58.954) 1.74.317) 6.500 (1. 2. Writing Printing and other uncoated Paper ii.114) Quantity 26.97.790) for re-pulping ** Quantity less than 1MT.12.050) Sales Value (Rs.140 (1.598 (29.22.600 39. 4C and 4D of Part II of Schedule VI to the Companies Act.62.) 6.00. (Nil) Production Quantity 26.Schedules forming part of the accounts Schedule 17 SIGNIFICANT ACCOUNTING POLICIES AND NOTES ON ACCOUNTS (Contd.20.606) 3.) 1.529 (78.93.455) Unit MT MT Licensed Capacity Installed Capacity 8.603 (1. 52 | Yash Papers Limited . 7. Contingent Liabilities and Contingent Assets) The Company has recognised contingent liabilities as disclosed in Note No.751) 3. Details for each class of goods manufactured.298) 1.600) (39. sold and stocks during the period (as certified by the management) i. Additional information as required under paragraphs 3.366 (3. Disclosure in terms of Clause 32 of the Listing Agreement The Company has not granted any loan / advances in the nature of loan as stipulated in Clause 32 of the Listing Agreement with the Stock Exchanges. hence no provision is required on account of impairment of assets as on the date of Balance Sheet.153 (405) Value (Rs. Disclosure in terms of AS 29 (Provisions.12.57.) 8.100 (50.100) Self Consumed Quantity 53* (25*) ** (Nil) Value(Rs.05. No provision was outstanding as at the beginning and at the end of the period.51.14.

50.096 Nil Annual report 2009-10 | 53 ii.15.13.320 4.965 2.68) Indigenous value Rs.20.) 2.768 Note: Consumption includes wastage during processing of wheat straw (dust) 5. Raw material consumed Raw material Bagasse Old Gunny/Jute Goods Wheat Straw Imported Waste Paper/Pulp Finished Goods Re-pulped Total Current year Quantity (MT) 9.21.977 24.656 1.829) (2.751 9.11 (4.416) (54.39.052 44 Amount (Rs.504 (9.19.504 (9.75.589 2. c.08.853 44.563 Previous Year Quantity (MT) 29.43.19. .20.059 (17.14) 4.) b.031 15.13 (64.71.504 2.) (66.83.802) % 22.803 MT) used as fuel.933 MT).95. Value of material consumed Raw material i.701) (8. f. Stores & Spares e. 5.803) 14.27. Travelling ii.169 MT (1.862 62.307 (79.86) 95.89 ( 1.) d.529) (1.336) Current year (Rs.14. Others Nil 5.27.965) 61.23.643 MT (4.406 2.77.27.Schedules forming part of the accounts Schedule 17 SIGNIFICANT ACCOUNTING POLICIES AND NOTES ON ACCOUNTS (Contd. Interest – Others iii. Foreign Bank Charges iv.24.852 70.668 (16.322 2.41. CIF Value of Imports i. Capital Goods ii.805 NIL % 77.72.026 g.32) Previous Year (Rs.24.61.72.) 5.790 26. 5.236 11.457) (Nil) (5.88. 19.967 11 Amount (Rs. Raw Materials and consumables Remittance in Foreign Currency on account of Dividend Earnings in Foreign Exchange FOB Value of Exports Expenditure in Foreign Currency i. Raw Material Imported value Rs.84.87 (35. Old Gunny/Jute Goods (dust) 39 MT (NIL) and bagasse (pith) 1.

80.53. 5. Fixed deposits include Rs.940 4.05.670.1.414) (20. 54 | Yash Papers Limited .72.722 ( NIL ) due to a director. 17.776 (Rs. 7.099 Amount in Rupees Previous Year (25.980). Customs.) h.123 17. Mumbai/Kanpur U P State Industrial Corporation Ltd. 1.071 Nature of Exposure FCNR(B) Demand Loan Outstanding Export Bills Outstanding Export Bills Outstanding Export Bills Outstanding Import Bills Advance for Spares (Import) Receivable of CERs Underlying Risk Coverage USD / INR USD / INR AUD / INR EURO / INR USD / INR USD / INR EURO / INR 10.12.80. NIL 5.12.000 (Rs.680) due to directors.600) are pledged with the banks against the Guarantees given to the following parties:Amount in Rupees FDR Amount Hon'ble High Court.82. b.885 4. 2. 13.554) (1.000) are pledged with the Assistant Commissioner. * Salary Contribution to Provident Fund * Compensation / Pension Sitting fee Total Value of perquisites (as per the Income Tax Rules) Directors are also covered under the Companies Group Gratuity Policy along with other employees of the Company.000 NIL (2.000) (1.01.88. Fixed deposit receipts for Rs.05.500 NIL (2.600) 11.Schedules forming part of the accounts Schedule 17 SIGNIFICANT ACCOUNTING POLICIES AND NOTES ON ACCOUNTS (Contd.000 30.600) Value of Guarantee NIL 20.000 1.063 1.000) (5.64. d.348 14. 16.500) (9.129 (Rs. 12. 30. 12.784) a.571) and other liabilities include Rs. Interest accrued but not due Rs. 1.58.76. Maximum amount outstanding at any time during the year was Rs.88. Faizabad as security and fixed deposit receipts for Rs.77.000) (32.641 10. Allahabad Commissioner.697 40.80. 30.89.000 (Rs.00. e. 2010 Particulars Forward Contract Unhedged Foreign Currency Exposure Currency USD USD AUD EURO USD USD EURO Amount 10.374 9. Directors’ Remuneration: Current year 24.720) (4.66. Trade Tax (Assessment). c.834) (18.000) (9.05. Contributions made for directors have not been considered since the amount is not ascertained individually.87.68. Forward Exchange Contracts and unhedged Foreign Currency Exposure Outstanding as on 31st March.94.15.161 (Rs.80.77. Loans and Advances include Rs.21.38.59.

42.000) (2. Key management personnel and their relatives Current year (Rs.341 89.341) (2. the disclosure requirements of Accounting Standard 17 “Segment Reporting” issued by the Institute of Chartered Accountants of India is not applicable. b.832 35.553) Previous Year (Rs.01. Key management personnel and relatives: Mr. 16.) (24.19. List of related parties with whom transactions have taken place during the Year: i.169) (1.341) (65.86.00. ‘Paper’. With related entities & associates Current year (Rs.) 14.336) paid to Directors on Fixed deposits accepted by the Company.58. 1.000 NIL 5. R. Mrs. Mr.131) 29.258) (44. 1.22.000) (2.) Satori Global Private Limited – Rent received – Sale of goods and services – Receivable at the Balance Sheet date – Preferential Issue of Shares – Forfeiture of Upfront Preferential Warrant Money – Commission Paid on Sale 24.550) (7. ii. Interest on Term Loan and Fixed Deposits include Rs.58.000 NIL 89.58.000) (1.590) (27. Ved Krishna (Managing Director).835 (Rs. Related parties disclosures as required under Accounting Standard 18 “Related Parties Disclosure” issued by the Institute of Chartered Accountants of India are given as below: a.00.554) (48.61.693) (1.01.Schedules forming part of the accounts Schedule 17 SIGNIFICANT ACCOUNTING POLICIES AND NOTES ON ACCOUNTS (Contd.00.00.52.N.) Directors Remuneration Rent paid Fixed deposits received Fixed deposits repaid Interest paid on fixed deposits Fixed deposits at the Balance Sheet date Accrued interest at the Balance Sheet date Unsecured Loans at the Balance Sheet date Salary ii. 15.70. Mrs.32.264) (35. Chakraborty (Executive Director).70.882 Annual report 2009-10 | 55 . Shailja Krishna (relative) Entities & Associates Megha Agro Products Limited. Satori Global Private Limited (formerly Sargam Exim Private Limited) and M/s Jingle Bell Nursery School Society Transactions with related parties i.050) (9. As the Company’s business activity falls within a single segment viz.) (30.475 NIL NIL Previous Year (Rs.000 9.063 48. Manjula Jhunjhunwala (Director).12.000 2.290 10.40.

705.2009 159. Small and Medium Enterprises Development Act. 2006 and hence the disclosure required under the Act could not be compiled and disclosed.) Current year (Rs.36.60.Schedules forming part of the accounts Schedule 17 SIGNIFICANT ACCOUNTING POLICIES AND NOTES ON ACCOUNTS (Contd.69.818.000) (7. 18.946.46.2010 Deferred Tax Liabilities on account of – Higher depreciation claimed under Tax laws Sub Total `A’ Deferred Tax Assets on account of – Unabsorbed Depreciation – Unabsorbed Business Loss – Expenses allowable in subsequent periods – MAT Credit Sub Total `B’ Net Deferred Tax Liability (A– B) @ Net increase / (decrease) in liability debited / (credited) to Profit and Loss Account 154.03.224) (21.613) (95.244.000 9.000 159.000 6.) (1.000 Amount in Rupees As on 31.010.000 150.000 9. Details of remuneration to directors are given in note B-13 above.829 1.000 – 7.902) (6.092 60.62. The Company has not received any intimation from suppliers regarding status under Micro.891.) Megha Agro Products Limited – Paid for vehicle hire charges – Receivable at the Balance Sheet date M/s Jingle Bell Nursery School Society – Fixed deposits received – Fixed deposits repaid – Interest paid on fixed deposits – Fixed deposits at the Balance Sheet date – Accrued interest at the Balance Sheet date – Salary reimbursement of teaching staff Note: a.000 154.113.000 – 179.000 144.818.08.466.74.000 241.114 12.000) @ In accordance with clause 29 of AS 22 Deferred Tax Assets and Deferred Tax Liability have been set off.465 NIL Previous Year (Rs.000 143.44.057 47. The Deferred Tax Liability comprises of tax effect of timing differences on account of: As on 31.830) (8.448) (11.000 3.000 146.40.412.00.412.043.70.000 1.993) (11.000 (8. No amounts pertaining to related parties have been written off or provided for as doubtful assets. b. 56 | Yash Papers Limited .305.000) 29.54.64.

00 Crore.06.60. 20. 294.000/.12 lacs on account of ‘Mark to Market’ valuation of outstanding exposure and Rs.600 23. Chkraborty Executive Director P.59. B-2(d) above.) Capital Expenditure Revenue Expenditure (included in Miscellaneous Expenses in Schedule-16) been disclosed under Miscellaneous Expenditure in the Balance Sheet. 22. Total amount receivable as at the year end Rs. On the basis of legal opinion no provision has been considered necessary by the management. Intangible Assets – Expenditure on Research and Development (AS 26) (Amount in Rs.95 lacs has not been provided in the books.) 19. 25. 55. Chartered Accountants Rajesh Parasramka Partner Membership No. 30. 38. 654.48 lacs (Rs.99 lacs (including Rs.Schedules forming part of the accounts Schedule 17 SIGNIFICANT ACCOUNTING POLICIES AND NOTES ON ACCOUNTS (Contd. 21. 24. Loss of Rs. However the same has been disclosed as contingent liability in Note no. aggregating to Rs.81 lacs has been disclosed as Other Current Assets in the Balance Sheet.53 lacs for the current year) on account of unpaid interest accrued on above. 270. 2010 based on Agreement (Emission Reduction Purchase Agreement) with Belgian State for sale of CERs (Certified Emission Reductions) generated from the 6MW Co-generation Power Plant Project registered as CDM (Clean Development Mechanism) with UNFCCC (The United Nations Framework Convention on Climate Change). This has Signatures to Schedules 1 to 17 For Kapoor Tandon & Co.15. 74192 Camp: Faizabad Date: August 12. Income tax assessment has been completed up to the assessment year 2007-08. A sum of Rs. 2010 Ved Krishna Managing Director R. During the year. 64. Figures in bracket pertain to previous year and have been regrouped / rearranged wherever necessary to make them the Registrar of Companies.75 lacs) has been recognised as income accrued for the year ended 31st March. the Authorised Capital has been increased from Rs. in the year 2007-08. NIL 9. N.00 Crore to Rs.60.378 NIL 6. The Balance Sheet Abstract and Company’s general business profile as required by Part IV of Schedule VI to the Companies Act. Rs.84 lacs on account of unwinding charges (partial unwinding). 158. Mukhopadhyay Chief Financial Officer For and on behalf of the Board Annual report 2009-10 | 57 . 1956 are given in the annexure attached. The Company has paid a fee of Rs. 24. The same will be transferred to Share Premium Account on issue of shares. The Company has disputed a Derivative transaction (Structured USD/CHF Option) entered into with ICICI Bank Ltd.

Position of Mobilisation and Deployment of Funds (Amount in Rs. 8 0 0 Total Expenditure Profit after Tax Dividend rate @ % . Mukhopadhyay Chief Financial Officer 58 | Yash Papers Limited . 0 9 0 0 8 6 0 4 8 N 8 6 I 3 0 L V. Thousands) Public Issue N I L Bonus Shares Total Liabilities Sources of Funds Paid-up Capital * including Preferential warrant money) Rights Issue Private Placement N 1 4 2 8 I 0 4 5 L 9 0 0 9 8 0 8 9 0 1 4 0 8 4 4 7 1 0 6 6 8 6 L 5 2 4 III. 74192 Camp: Faizabad Date: August 12. Item Code No. Thousands) Total Assets Reserves and Surplus Unsecured Loans Secured Loans Deferred Tax Liability Application of Funds Net Fixed Assets Net Current Assets 1 0 2 3 0 8 8 Investments Miscellaneous Expenditure 1 5 0 6 6 Accumulated Losses N I IV. Capital Raised during the year (Amount in Rs. Performance of the Company (Amount in Rs. Item Code No. (ITC Code) Product Description 3.) 8 6 1 1 0 7 3 . Chartered Accountants Rajesh Parasramka Partner Membership No. Chkraborty Executive Director P.Balance Sheet Abstract Annexure to the Notes to the Accounts Balance Sheet Abstract and Company’s General Business Profile (Information pursuant to Part IV of Schedule VI of the Companies Act. N. 0 5 2 9 4 Balance Sheet Date 3 1 0 3 2 0 N 1 I 0 L N 1 4 1 0 2 2 9 2 4 8 3 5 I 4 1 9 L 1 4 0 State Code 2 0 II. 0 0 Pulp For and on behalf of the Board Ved Krishna Managing Director R. Registration Details Registration No. Item Code No. . Thousands) Total Income Profit before Tax Earnings per Share ( In Rs. 1956) I. (ITC Code) Product Description For Kapoor Tandon & Co. 2010 4 8 0 2 5 5 Paper weighing 40gsm but less than 150gsm 4 7 0 6 9 2 . Generic Names of three Principal Products of the Company (as per monetary terms) 4 8 0 4 3 1 1. (ITC Code) Product Description Kraft Paper in rolls or sheets 2.

921 (1.730 – (1.302 (29.073 (24.338 1.415 164.442) (951) 114.198) (10.007 1.087 62.153 (23.886) Rupees in thousands Previous Year ended 31-03-2009 Annual report 2009-10 | 59 .038) 12.Cash Flow Statement For the year ended 31st March.858) 74.588) (29.476) 1.104 (443) (21.313 1.228 – (19.686) (17.258) (70.928) 6.478 (606) (1. 2010 (Pursuant to Clause 32 of the Listing Agreement) Current Year ended 31-03-2010 A CASH FLOW FROM OPERATING ACTIVITIES Net profit before tax Adjustment for:Depreciation Profit on Sale of Fixed Assets Interest Income Interest Expenses Loss on Sale of Fixed Assets/Investments Operating Profit before Working Capital changes Adjustment for:Inventories Trade and Other Receivables Other Assets Trade Payable and Other Liabilities Income Tax Paid (Including tax on dividend) Cash generated from operations Interest Received NET CASH FROM OPERATING ACTIVITIES B.150 (1.815) 102.810) (7.893 145.008 357 174. CASH FLOW FROM INVESTING ACTIVITIES Purchase of Fixed Assets (Including CWIP) Sale of Fixed Assets Sale of Investments NET CASH USED IN INVESTING ACTIVITIES (32.149 951 75.785 166.199) 25.284) 31.251) 187.815 189.100 63.

Cash and Bank balances) Note: The above Cash Flow Statement has been prepared under the 'Indirect Method' as set out in the Accounting Standard-3 on Cash Flow Statements. 2010 Rupees in thousands Current Year ended 31-03-2010 C CASH FLOW FROM FINANCING ACTIVITIES Interest Paid Proceeds from issue of Preferential shares/warrants Fee for increase in Authorised Capital Proceeds from Working Capital Borrowings Proceeds of Short Term Borrowings Proceeds of Long Term Borrowings Repayment of Long Term Borrowings Dividend Paid Net Cash (Used in)/From Financing Activities Net Increase/(Decrease) in Cash and Cash Equivalents Cash and Cash Equivalents (Opening Balance) Cash and Cash Equivalents (Closing Balance) (Refer Schedule-9.700 4. 74192 Camp: Faizabad Date: August 12.674) – (67. issued by the Institute of Chartered Accountants of India.296 13. (102.980) 21.076) 14.313) – (1.826 (12.202 – 24.506) 8. Chkraborty Executive Director P.136 14. 2010 Ved Krishna Managing Director For and on behalf of the Board R.344 28.160 8. Mukhopadhyay Chief Financial Officer 60 | Yash Papers Limited . For Kapoor Tandon & Co.) For the year ended 31st March. N.296 Previous Year ended 31-03-2009 As per our report of even date attached. Chartered Accountants Rajesh Parasramka Partner Membership No.150 (107.742) 6.419) (1.794) – (170.008) 14.892 (1.Cash Flow Statement (Contd.220 (114.

To appoint a Director in place of Mr. if thought fit.07.2012 on the following terms and conditions :(a) Salary: Rs. To appoint a Director in place of Mrs. to transact the following businesses: Ordinary Business: 1. 01. Annual report 2009-10 | 61 30th Annual General Meeting NOTICE Jhunjhunwala. Chakraborty. 309. the approval of the company be and hereby accorded to the appointment of Mr. 310. Civil Lines. R. Gyanendra Nath Gupta.. offers himself for re-appointment.Increment will be effective from 1st June each year.e. Office: 47/81. 1956.per month in the grade of Rs. the 25th day of September. To appoint a Director in place of Mr. as an Executive Director of the company for a period of 2 years w. upto 30.28. Hatia Bazar. N. who retires by rotation and being eligible. offers himself for re-appointment. 269. who retires by rotation and being eligible. Kanpur-208001 NOTICE is hereby given that the 30th Annual General Meeting of the Members of Yash Papers Limited will be held at Hotel Little Chef. 3. 311 read with Schedule XIII & other applicable provisions. Yash Krishna.f. 2.35. 2010 and the Profit & Loss Account for the year ended on that date and the reports of the Directors and Auditors thereon. of the Companies Act. Manjula Special Business: 6.Rs. consider and adopt the Audited Balance Sheet as at 31st March.M.000/.28.000/. Kanpur – 208 001 on Saturday.000/. to pass with or without modification(s) following resolution as special resolution: “RESOLVED THAT pursuant to the provisions of section 198. 2010 at 1:00 P. To consider and.2010 i. offers herself for re-appointment. . 15/198. To appoint auditors and fix their remuneration.e. To receive.06. who retires by rotation and being eligible. if any. 5. 4.Yash Papers Limited Regd.

Encashment of leave shall not be included in the computation of the ceiling on perquisites. remuneration by way of salary. electricity. leave travel concession for himself and his family. Provision for use of the Company's car and telephone at residence (including payment for local calls and long distance official calls) for official duties shall not be included in the computation of perquisites for the purpose of calculating the said ceilings. N. (e) Company's contribution to Provident Fund and Superannuation Fund or Annuity Fund. 2 & 3 of Section II of Part II of Schedule XIII of the Companies Act.. house maintenance allowance. 1956. (g) Leave: On full pay and allowances. medical reimbursement. as amended from time to time.): As applicable from time to time. medical insurance etc. hotel and other expenses actually incurred by him in performance of the duties on behalf of the Company.” Notes: 1.25.10th June. 1956 and other applicable provisions and laws. N. N. The Explanatory Statement. (k) Payment of all the allowances including production incentive shall be limited to Rs1.p. 1961. 2010 to 8th September. Mr. The proxy form must be deposited at the Registered Office of the Company not less than 48 hours before the commencement of the Annual General Meeting. 2004 . if any. R. (c) Production Incentive: As per applicable scheme for the employees. facilities.11th May. N. Chakraborty. allowances and expenses may be allowed under Company rules/schemes and available to other employees. (l) Mr. furnishing and repairs. Chakraborty shall also be entitled to reimbursement of entertainment. water. in respect of the business set out above is annexed hereto. . “RESOLVED FURTHER that the Board of Directors of the company be and are hereby authorized to vary. R. the Company has no profits or its profits are inadequate or in any case. club fees. in accordance with the rules of the Company or as may be agreed to by the Board of Directors and Mr. (d) Perquisites : In addition to the above. R.000/. R. 3. modify or alter the terms and conditions of enhanced remuneration of Mr. 1956. The Register of Members and the Share Transfer Books of the Company shall remain closed from 6th September. 1956. 2011 . 2010 (both days inclusive). Chakraborty. 2010 . (i) Any other benefits. (h) Mr. 2. perquisites and other allowances will be subject to the ceilings set out in para 1(A). to Investor Education and Protection Fund (IEPF) constituted by the Central Government under applicable provisions of the Companies Act. 1956.A. R. A MEMBER ENTITLED TO ATTEND AND VOTE AT THIS MEETING IS ENTITLED TO APPOINT A PROXY TO ATTEND AND VOTE ONLY ON A POLL INSTEAD OF HIMSELF/HERSELF AND SUCH PROXY NEED NOT BE A MEMBER OF THE COMPANY. 5. as per rules of the Company. 4. on the dates specified against the year: 31st December. gratuity payable as per rules of the Company and encashment of leave at the end of his tenure shall not be included in the computation of limits for the remuneration or perquisites aforesaid. to the extent these either singly or together are not taxable under the Income Tax Act. 2012 Please note that under the amended provisions of Section 205B of the Companies Act. (f) Minimum Remuneration: If in any accounting year. The unclaimed/unencashed dividends for the following financial years shall be transferred by the Company. 62 | Yash Papers Limited (j) No sitting fees will be paid for attending the meetings of the Board of Directors of the Company or Committees thereof. subject to approval of Board of Directors. Executive Director of the Company to comply with Schedule XIII of the Companies Act. 2003 31st December. shall also be entitled to a commission upto 1% of the net profit as permitted under section 309 of the Companies Act. as required under Section 173(2) of the Companies Act. Chakraborty. N.13th July. together with utilities such as gas. Chakraborty.m. traveling. 2002 31st December.(b) Variable Dearness Allowance (V.D. shall be entitled to perquisites like accommodation (furnished or otherwise) or house rent allowance in lieu thereof. perquisites shall be evaluated at actual cost to the company. such perquisites shall however be paid as per applicable provisions of Income Tax Act and rules and in the absence of any such Rules.

of the Companies Act. 269. under clause 49 of the Listing Agreement with the Stock Exchanges. 309. All material documents referred to in notice and explanatory statement are open for inspection by the members on all working days between 11:00 AM to 1:00 PM at the Registered Office of the Company. R.06. Okhla Industrial Place. N.1956 no claim shall lie for the unclaimed dividend from IEPF by the shareholders. Annual report 2009-10 | 63 . Members desirous of obtaining any information with regard to the accounts and operations of the Company are requested to write to the Company at least ten days before the meeting. 12. 01. As per the provisions of the Companies Act. 2010 Ved Krishna Managing Director By Order of the Board Save and except Mr. Phase-1. 11. Details. Shareholders who have not encashed the dividend warrant(s) for the above year(s) are therefore. The Board has reappointed him. Therefore.e. The nominations can be made by filing the prescribed Form No. 6 Mr. 2010 Ved Krishna Managing Director EXPLANATORY STATEMENT UNDER SECTION 173(2) OF THE COMPANIES ACT. necessary resolution under section 198. in any way.2010 i. 10. 1956 Item No.06. 1956.e. 9. Board recommended the above resolution. Members holding shares in physical form are requested to inform the change of their registered address to our Registrar and Transfer Agent (RTA). if any. Chakraborty. requested to approach the company for issue of duplicate in lieu thereof by surrendering the original warrant(s). Company has been allotted ISIN No. subject to your approval. INE551D01018. M/s Skyline Financial Services Private Limited at its D-153/A. scn@yash-papers. pursuant to clause 47(f) of the Listing Agreement. 311 read with schedule xiii and other applicable provisions . New Delhi-110020 by quoting their folio number. Chakraborty was appointed as an Executive Director in the year 2005 and his present tenure expired on 30. Place : Faizabad Date : 12th August. R. 13. concerned or interested in this has been designated for the purpose of registering complaints by investor. Such form may be requisitioned from the Company. Members/ Proxies are requested to bring the attendance slip duly filled in along with their copies of Annual Report in the meeting. none of the Director of the Company is. 2B.07. Members are requested to approach their DPs for dematerialisation of equity shares of the Company. 8. 7. 1956. so that the information could be made available at the meeting. By Order of the Board Place : Faizabad Date : 12th August. upto 30. is being placed before you for your approval. for a further period of 2 years w.2012 on terms and conditions as decided by remuneration committee.2010 having regard to his contribution in the Company and rich experience in different fields and specialization in Management and Industry and he is associated with the company since 28 years. in respect of Directors seeking appointment/ re-appointment at the Annual General Meeting is separately annexed thereto.f. 1st floor. facility for making nominations is available to the shareholders and fixed deposit holders in respect of the shares or deposits held by them. 6. 310.N.

1994 1) 2) 3) 4) 5) Asian Fertilizers Ltd.1952) B. Manjula Jhunjhunwala 58 years (19.1977) M. Educationist 17.07. Ltd.05. Gyanendra Nath Gupta 79 Years (23.M.Sc. Name Age (Date of Birth) Qualification Occupation Date of appointment Directorship in other Companies Mrs.03.1981 Megha Agro Products Limited 2. RIvi Stock & Services Pvt..A.04.. LL. Name Age (Date of Birth) Qualification Occupation Date of appointment Directorship in other Companies Mr.1931) M. Ltd. 3.B. Tax Consultant 16. Industrialist 20.2005 None 64 | Yash Papers Limited .Details of the Directors Seeking Re-Appointment / Appointment at Annual General Meeting 1.Ed.06.11. (Hons). Yash Krishna 33 years (19. B. Ltd. Manoj Housing Finance Co.A. Name Age (Date of Birth) Qualification Occupation Date of appointment Directorship in other Companies Mr. Hiranyamai Investments Pvt. Flex Foods Ltd.

DPID ............................being a member/members of Yash Papers Limited............................................................................ as my/our proxy to attend and vote for me/us on my/our behalf at the 30th Annual General Meeting of the Company to be held on Saturday............................................. Hatia Bazar... Yash Papers Limited Regd.................. or failing him/her ......................................... Note: The Proxy form duly completed and signed should be deposited at the Registered/Corporate Office of the Company..................... 2010 at 1:00 P..................... Kanpur .. of Shares ... of ............of .................................................................................................................. Office: 47/81.................................... Hatia Bazar.................... hereby appoint ............... ...M and at any adjournment thereof.......... SIGNATURE OF THE MEMBER OR PROXY/REPRESENTATIVE Annual report 2009-10 | 65 .. Kanpur-208001 To be handed over at the entrance of Meeting Hall ATTENDANCE SLIP I hereby record my presence at the 30th Annual General Meeting of the Company at Hotel Little Chef............. 1/Revenue Signed this the district of ................. not later than 48 hours before the time of the meeting..... the 25th day of September..................... the 25th day of September...................... of ...........M............................ day of ..........Yash Papers Limited Regd.............................................................................................. Folio/Client ID No. Client ID ......................... Office: 47/81. Re.......................................... of Shares ........................... No....................... No........................ Name of the Proxy/Representative (In Block Letters) (To be filled in if the Proxy/Representative attends instead of the Member) ...................................................................... Kanpur-208001 PROXY I/We....... Civil Lines....................... Stamp Folio No..................................................... in the district of ................ ....................................... Signature ................ ......................................................................................... 2010 at 1:00 P....208 001 on Saturday............ 15/198....................................... 2010................ Name of the Member .................................................. in the district of ......................................................................................................................................

66 | Yash Papers Limited .

achievement. and success have no meaning. such words as improvement.“ Without continual growth and progress. Benjamin Franklin ” Annual report 2009-10 | 67 .


Disclaimer Statements in this report that describe the Company’s objectives. estimates. and other factors relating to the Company’s operations. projections. economic developments within the countries in which the Company conducts business. labour negotiations and fiscal or obtained by contacting our corporate office (see back cover). Important factors that could cause differences include raw materials’ cost or availability. changes in government regulations.yash-papers. . The Company cautions that such statements involve risks and uncertainty and that actual results could differ materially from those expressed or Pdf copies of the annual report may be downloaded from our website www. cyclical demand and pricing in the Company’s principal markets. expectations or predictions of the future may be ‘forward-looking statements’ within the meaning of the applicable securities laws and regulations. such as litigation. A PRODUCT info@trisyscom.

Yash Nagar. Phone: 05278 326611-14 • Email: Visit us at . Faizabad 224135.yash-papers. Darshan Nagar.O. P.