Notes to Accounts of Coral Newsprints Ltd.

Mar 31, 2024

xi) Provisions and contingent liabilities /assets

Provisions are recognized when the Company has a present obligation (legal or constructive) as a result of a past
event, it is probable that an outflow of resources embodying economic benefits will be required to settle the
obligation and a reliable estimate can be made of the amount of the obligation. The expense relating to a provision is
presented in the statement of profit and loss net of any reimbursement. If the effect of the time value of money is

material, provisions are discounted using a current pre-tax rate that reflects, when appropriate, the risks specific to
the liability. When discounting is used, the increase in the provision due to the passage of time is recognized as a
finance cost. Contingent Liability is disclosed after careful evaluation of facts, uncertainties and possibility of
reimbursement. Contingent liabilities are not recognized but are disclosed in notes. Contingent Assets are not
recognized in financial statements.

xii) Cash Flow Statement

Cash flows are reported using the indirect method, whereby profit for the period is adjusted for the effects
transactions of a non-cash nature, any deferrals or accruals of past or future operating cash receipts or payment
and item of income or expenses associated with investing or financing cash flows. The cash flows from operating,
investing and financing activities of the Company are segregated.

xiii) Borrowing costs

Borrowing costs directly attributable to the acquisition, construction or production of an asset that necessarily takes
substantial period of time to get ready for its intended use or sale will capitalize as part of the cost of the asset. Other
borrowing costs are expensed in the period in which they occur. Borrowing costs consist of interest and of costs that
an entity incurs in connection with the borrowing of funds.

xiv) Significant accounting Judgments, estimates and assumptions

In the process of applying the Company''s accounting policies, management has made the following estimates,
assumptions and judgments which have significant effect on the amounts recognized in the financial statement:

a. Income taxes

Judgment of the Management is required for the calculation of provision for income taxes and deferred tax
assets and liabilities. The company reviews at each balance sheet date the carrying amount of deferred tax
assets. The factors used in estimates may differ from actual outcome which could lead to significant adjustment
to the amounts reported in the standalone financial statements.

b. Contingencies

Judgment of the Management is required for estimating the possible outflow of resources, if any, in respect of
contingencies/claim/ litigations against the company as it is not possible to predict the outcome of pending
matters with accuracy.

c. Allowance for uncollected accounts receivable and advances

Trade receivables do not carry any interest and are stated at their normal value as reduced by appropriate
allowances for estimated irrecoverable amounts. Individual trade receivables are written off when
management deems them not collectible. Impairment is made on ECL, which are the present value of the cash
shortfall over the expected life of the financial assets.

d. Defined benefit plans

The cost of the defined benefit plan and other post-employment benefits and the present value of such
obligation are determined using Management valuation as per IND AS 19. The valuation involves making
various assumptions that may differ from actual developments in future. These include the determination of the
discount rate, future salary increases, mortality rates and attrition rate. Due to the complexities involved in the
valuation and its long-term nature, a defined benefit obligation is highly sensitive to changes in these
assumptions. All assumptions are reviewed at each reporting date.

Proceedings under erstwhile SICA Act and BIFR Provisions

a) The company had already paid OTS amount of UPFC loan in the previous years. However in respect of the DADP interest
demanded by UPFC (i.e, Rs. 51.83 Lacs) vide its letter dated 24.03.2011, the company has requested for a waiver of 75% of
Interest demnded vide its letter dated 04.08.2011 in respect of which BIFR board had directed waiver of 50% of DADP
demand as per its order dated 23.05.2012.

Hence, as per the BIFR board''s order DADP demand would comes out to Rs. 25.92Lacs.

Further on the basis of BIFR direction, the company had also requested for waiver of 50% DADP Interest amount vide letter
dated 09.02.2013 but UPFC rejected the request vide its letter dated 04.03.2013 stating that the waiver can not granted as per
approved guidelines of the corporation.

However UPFC vide its letter dt 10.2.2014 has asked the company to submit fresh OTS with 10% amount of outstanding
principal as earnest money with in fifteen days of issue of this letter.

The company has filed its objection against this letter and requested to follow the BIFR order for waiver of 50% of DADP
interest.

BIFR vide its order dt 12.11.2014 has approved Draft Rehabilitation Scheme of the company and waived of 50% of the DADP
amounting which stood at Rs 25.92 lacs against which the company has paid Rs 21.82 till 31.03.2016. Against this order of
BIFR, the UPFC has Approached AAIFR.

However the ministry of finance has appointed 1st December, 2016 as the date on which provisions of sick industrial
companies (special provisions) Repeal Act, 2003 shall come into force. Therefore the SICA is repealed wef from 1st
December, 2016. The BIFR and AIFR stand dissolved with effect from 1st December, 2016 and all the proceeding before them
stand abated.

Further UPFC has tried to cancel the OTS proceedings but the assessee company has resisted the same vide it''s reply dt
27th July, 2017,

Further UPFC has issue a recovery notice to recover outstanding amount which amounting to Rs 4.10 lacs although the
liability of UPFC loan has not been written off till date for want of Closure letter.

During the year, UPFC vide its letter dated 05.03.2024 ,issued No Dues Certificate after settlement of DADP interest and
company has paid amount of Rs 753500/- in Feb 2024.The balance amount of interest waived by UPFC has been shown as
income in Profit & Loss account

33 The Company does not have any Immovable Property whose title deeds are not held in the name of the Company.

34 The Company does not have any investment property, hence the question of disclosure and valuation by a registered valuer as
defined under rule 2 of Companies (Registered Valuers and Valuation) Rules, 2017 does not arise.

35 The Company does not have any Benami property, where any proceeding has been initiated or pending against the Company for
holding any Benami property.

36 The Company has not raised funds from issue of securities or borrowings from banks and financial institutions for the specific
purposes.

37 The Company has not given any Loans or advances to specified persons during the year.

38 The Company has not obtained any borrowings from banks or financial institutions on the basis of security of current assets.

39 The Company has not been declared as a wilful defaulter by any lender who has powers to declare a company as a wilful defaulter
at any time during the financial year or after the end of reporting period but before the date when financial are signed.

40 The company has not entered into any sheme of arrengement approved by competent authority In terms of sectons 232 to 237 of
Companies Act 2013 During the year ended March 31 2024 and March 31.2023.

41 The Company has not advanced or loaned or invested funds to any other person(s) or entity(ies), including foreign entities
(Intermediaries) with the understanding that the Intermediary shall:

(a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the
company (Ultimate Beneficiaries) or

(b) provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries.

42 The Company has not received any fund from any person(s) or entity(ies), including foreign entities (Funding Party) with the
understanding (whether recorded in writing or otherwise) that the Company shall:

(a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the
Funding Party (Ultimate Beneficiaries)

(b) provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

43 The provisions of Corporate Social Responsibility under Section 135 of the Companies Act, 2013 are not applicable to the
Company.

44 The Company does not have any transactions with struck-offcompanies.

45 The Company has no such transaction which is not recorded in the books of accounts that has been surrendered or disclosed as
income during the year in the tax assessments under the Income Tax Act, 1961 ( such as search or survey or ay other relevent
provisions of Income Tax Act 1961).

46 The Company has not traded or invested in Crypto currency or Virtual Currency during the financial year.

47 The Company does not have any investment in any downstream subsidiary, joint venture, associates, Therefore, compliance with
number of layers of subsidiary is not applicable to the company.

48 The Company does not have any charges or satisfaction which is yet to be registered with the Registrar of Companies (ROC)
beyond the statutory period.

For LN MALIK & CO For and on behalf of the Board of Directors

Chartered Accountants

Pradyut Chauhan Pushpendra P.S. Chauhan

^g'' '' Director Whole-time Director (CEO)

SAMEER PAVI (DIN 017483706) (DIN : 01871760)

Partner

Membership No. 091816
Place : New Delhi

Date : 27-05-2024 UDIN: 24091816BKEFZX8679

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Mar 31, 2014

1. LONG TERM BORROWINGS

Remarks-1:

(a) Term Loan From PICUP has been setted for OTS (One Time Settlement) vide Letter Dated-13.10.2011 for an amount of Rs.200 lacs. Against this The company has paid Rs 30 lacs in FY 2011-12 and Rs. 170.86 lacs till 31.03.2013 including finance charges. However, the balance amount of Rs. 2,42,109/- has been paid during this financial year.

(b) As per letter dt 07.02.2013 received from PICUP, the company has to pay RC collection charges@10% of OTS amount, with in one months time as per the rules of PICUP. The company has informed the PICUP that as per their information there are no recovery certificates pending against any of the Guarantors and requested them to issue NO objection certificate. But PICUP has requested No due certificate from various Tehsils/DM in respect of dues against guarantors which are still awaited. Due to above fact, finalisation of recovery of RC collection charges is still pending and hence no provision has been made in the books on this account.

Remarks-2:

(a) The company had already paid OTS amount of UPFC loan in the previous years. However in respect of the DADP interest demanded by UPFC (i.e, Rs. 51.83 Lacs) vide its letter dated 24.03.2011, against which the company has requested for a waiver of 75% vide its letter dated 04.08.2011 in respect of which BIFR board has directed waiver of 50% of DADP demand as per its order dated 23.05.2012. Hence, as per the BIFR board''s order DADP demand would comes out to Rs. 25.92 Lacs, the company has already paid Rs. 14.82 lacs till 31.03.2012.

Further on the basis of BIFR direction, the company has requested for waiver of 50% DADP amount vide letter dated 09.02.2013 but UPFC rejected the request vide its letter dated 04.03.2013 stating that the waiver can not granted as per approved guidelines of the corporation. However UPFC vide its letter dt 10.02.2014 has asked the company to submit fresh OTS with 10% amount of outstanding principal as earnest money with in fifteen days of issue of this letter. The company has filed its objection against this letter and requested to follow the BIFR order for waiver of 50% of DADP interest,The matter is still under consideration.

(b) No confirmation of closing balance was available in respect of interest due to UPFC and due to above facts no provision of DADP interest on UPFC loan was made in the books of accounts during the year.

2. OTHER LONG TERM LIABILITIES

Remarks-1:

(a) The arbitration award passed on 15th Dec., 2010 by arbitrator Hon''ble Justice S.C. Jain (Retd) appointed by Hon''ble High Court, he has directed M/s Coral News prints Ltd to pay Rs 2.40 crores to Narayan Prasad Jalan (of Jalan Group) as full and final payment as follows:- Rs. 30 Lacs in lumpsum within 30 days from the date of the award and the balance Rs. 2.10 Crore in 35 monthly installments of Rs. 6 Lacs each subject to the condition that the Company shall have the moratorium period when they shall be paying the installments to the financial institution PICUP, UPFC & the secured creditor.

(b) The company has paid Rs. 96 Lacs to Mr Jalan till 31st March 2013 and the balance is still payable.

3. TRADE PAYABLES

Remarks-1

Sundry creditors includes creditors for capital goods, raw materials & other expenses.

4. Prior Period Items

Remark-1:

Prior period items includes Water Cess Rs. 1,26,693/-, Rent, Rates & Taxes (Jila Panchayat Tax) Rs. 16,000/- and Other Expenses Rs. 14,440/-.

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Mar 31, 2013

1. Balance of Unsecured loan, Loans and advances, Sundry Debtors & Sundry Creditors are subject to confirmation.

2. Company''s counter claim against the creditors (Secured & Unsecured) have not been considered while preparing the accounts.

3. Amount due to directors Rs. 55,56,308/- (Previous year Rs. 8,42.009/-). Maximum Balance during the year Rs. 63,42,009/- (P.Y. Rs. 11,36,509/-).

4. Bank Balances with Scheduled banks in Current Account Rs. 15,88,155/-.

5. The Company is listed with Bombay Stock Exchange, thought for the time being trading is suspended due to certain compliances of BSE which are now being complied with.

6. In the opinion of the Board of Directors, Current Assets, Loan and advances have been valued on realisable value in the ordinary course of the business at least equal to the amount at which they have been stated in the Balance Sheet as at 31-03-2013 and appropriate provisions for all the known liabilities have been made in the accounts.

7. In view of the multiplicity and identification of accounts relating to small scale industrial undertakings, information for determining the particulars relating to current indebtedness to such undertakings as required under schedule VI Part i to the Companies Act, 1956 is not readily available.

8. The company is primarily engaged in the manufacturing of newsprints and secondarily absorbent kraft paper. Since the Company''s entire business is conducted within India, there is no reportable geographical segments for the Based upon the available information, the company is of the opinion that there are no company (fellow subsidiary, joint venture associates) under the same management.

During the year the Company has entered into transactions with related parties. Those transactions along with related balances as at March 31si, 2013 and 2012 are presented in the following table.

9. During the year the Company has recognised deferred tax assets as per AS- 22 issued ICAI amounting to Rs. 9,50,023/- on account of timing defference on depreciation and carry forward losses. The deferred tax asset has been recognised since there is a virtual certainity that sufficient future taxable income will be available against which such deferred tax asset can be realised.

10. Provision for Income Tax has been made as per the provision of Income Tax Act, 1961.

11. Previous year figures have been re-arranged and re-grouped wherever found necessary.

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Mar 31, 2011

I. Contingent Liabilities not provided for :

PARTICULARS Current Year Previous Year Rs. Rs.

Water Cess Under Appeal 229,891 229,891

Income Tax Under Appeal (Ay 1995-96)* 269,105 269,105

Income Tax Under Appeal (Ay 1996-97)* 216,322 216,322

Sales Tax Appeal (AY 2003-2004) 646,883 646,883

* The above matter is pending with Delhi High Court

1. Balance of Unsecured loan, Loans and advances, Few Sundry Debtors & Sundry Creditors are subject to confirmation.

2. Company's counter claim against the creditors (Secured & Unsecured) have not been considered while preparing the accounts.

3. Term Loan & Working Capital Terms Loans from State Financial Institution are secured against movable/immovable properties both present & future and personal guarantee of the Directors of the Company. The Company had already paid the OTS amount of UPFC loan during the previous year. However in respect of the DADP interest demanded by UPFC (i.e. Rs. 51.83 Lacs) vide its letter dated 24.03.2011 against which the company has requested for a waiver of 75% vide its letter dated 04.08.2011 which is still pending before BIFR Board. However, as per the previous DADP demand of Rs. 51.83 lacs the company has already paid Rs. 14.82 lacs till 31.03.2011.

During the previous year, the Company had requested for OTS with PICUP at Rs. 235 Lacs which was not approved. As per the directions by BIFR, the Company laid down many times the OTS proposals. As per the new OTS proposal on 25.06.2011 for final settlement and reduce the previous OTS to Rs. 201 lacs on the basis of new OTS policy of PICUP. The company had already paid Rs. 38 Lacs (Rs. 37 lacs in the F.Y. 2003-04 and Rs. 1 lac in F.Y. 2010-11).

No confirmation of closing balance was available in respect of above loans. Hence, no provision of interest was made in the books of accounts during the year.

4. The accounts of the Company have been prepared on the basis that the Company is a going concern.

5. Amount due to directors Rs. 10,39,802.00 (Previous year Rs. 18,09,509.00). Maximum Balance during the year Rs. 23,09,509.00 (P.Y. Rs. 46,94,509.00).

6. Bank Balances with Scheduled banks in Current Account Rs. 51,13,699/-.

7. In the opinion of the Board of Directors Current Assets, Loan and advances have been valued on realisable value in the ordinary course of the business at least equal to the amount at which they have been stated in the Balance Sheet as at 31-03-2011 and appropriate provisions for all the known liabilities have been made in the accounts.

8. In view of the multiplicity and identification of accounts relating to small scale industrial undertakings, information for determining the particulars relating to current indebtedness to such undertakings as required under schedule VI Part I to the Companies Act, 1956 is not readily available.

9. The company is primarily engaged in the manufacturing of newsprints and secondarily absorbent kraft paper. Since the Company's entire business is conducted within India, there is no reportable geographical segments for the year.

Based upon the available information, the company is of the opinion that there are no company (fellow subsidiary, joint venture associates) under the same management.

10. The Company has recognised deferred tax assets as per AS-22 issued ICAI amounting to Rs. 18,37,910/- on account of timing defference on depreciation and carry forward losses. The deferred tax asset has been recognised since there is a virtula certainity that sufficient future taxable income will be available against which such deferred tax asset can be realised.

11. The arbitration award passed on 15th December 2010. by arbitrator Hon'ble Justice S.C. Jain (Retd.) appointed by Hon'ble High Court, He has directed M/s Coral Newsprint Ltd. to pay Rs. 2.40 Crore to Narayan Prasad Jalan of (Jalan Group) as full and final payment as follows:- Rs. 30 lacs in lumpsum within 30 days from the date of the award and the balance Rs. 2.10 Crore in 35 monthly installments of Rs. 6 lacs each subject to the condition that the Company shall have the moratariumn period when they shall be paying the installments to the financial institution PICUP, the secured creditor.

During the previous year, the Company has paid Rs. 48 lacs to the claiment out of Rs. 2.40 Crore.

12. Provision for Income Tax has been made as per the provision of Income Tax Act, 1961.

13. Aggregate amount of prior period expenses charged to Profit & Loss A/c- 547994/- (Water Cess demand), (previous year - Rs. Nil)

14. Previous year figures have been rearranged and regrouped wherever necessary.

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Mar 31, 2010

1. Contingent Liabilities not provided for :

PARTICULARS Current Year Previous Year RS. RS.

Water Cess Under Appeal 229,891 229,891

Income Tax Under Appeal (Ay 1995-96)* 269,105 269,105

Income Tax Under Appeal (Ay 1996-97)* 216,322 216,322

Sales Tax Appeal (Ay 2003-2004)* 646,883

2. Balance of Unsecured loans and advances, Few Sundry Debtors & Sundry Creditors are subject to confirmation.

3. Companys counter claim against the creditors (Secured & Unsecured) have not been considered while preparing the accounts.

4. Term Loan & Working Capital Terms Loans from State Financial Institution are secured against movable/immovable properties both present & future and personal guarantee of the Directors of the Company. The Company had already paid the OTS amount of UPFC loan during the previous year. But in respect of the DADP interest demanded by UPFC (i.e. Rs. 66.28 Lacs) vide its letter dated 15.02.2010 against which the company has requested for a waiver of 75% vide its letter dated 17.05.2010 which is still pending before BIFR Board. However, as per the previous DADP demanded of Rs. 59.27 lacs the company has already paid Rs. 14.82 lacs till 31.03.2010.

During the previous year, the Company had requested for OTS with PICUP at Rs. 235 Lacs which was not approved. As per the directions by BIFR, the Company laid down the new OTS proposal on 19.07.2010 for final settlement and reduce the previous OTS to Rs. 175 lacs on the basis of new OTS policy of PICUP. The company had already paid Rs.^7 Lacs in the F.Y. 2003-04. Further after the detailed explanation sort by PICUP regarding deduction in amount of OTS, the company again laid down the detalied proposal with

reasons on 05.08.2010 for reconsidering the OTS at Rs. 175 lacs.

No confirmation of closing balance was available in respect of above loans. Hence, no provision of interest was made in the books.

5. The accounts of the Company have been prepared on the basis that the Company is a going concern.

6. Amount due to directors Rs. 18,09,509.00 (Previous year Rs. 48,59,509.00). Maximum Balance during the year Rs. 46,94,509.00 (P.Y. Rs. 65,80,290.00).

7. Bank Balances with Scheduled banks in Current Account Rs. 28,88,308/-.

8. Payment to Auditors includes :

9. In the opinion of the Board of Directors Current Assets, Loan and advances have been valued on realisable value in the ordinary course of the business at least equal to the amount at which they have been stated in the Balance Sheet as at 31-03-2010 and appropriate provisions for all the known liabilities have been made in the accounts.

10. In view of the multiplicity and identification of accounts relating to small scale industrial undertakings, information for determining the particulars relating to current indebtedness to such undertakings as required under schedule VI Part I to the Companies Act, 1956 is not readily available.

11. The company is primarily engaged in the manufacturing of newsprints and secondarily absorbent kraft paper. Since the Companys entire business is conducted within India, there is no reportable geographical segments for the year.

12. Related Party Disclosure :

Key Management Personnel

a) Mr. Chetan P.S. Chauhan : Chairman

b) Mr. Pushpender P.S. Chauhan Whole Time Director

c) Mr. Yogesh Alawadi Whole Time Director

d) Mr. Ram Avtar Bansal : Director

e) Mr. Atul Kumar Jain Director

f) Mr. Mahesh Sodhani Director

Based upon the available information, the company is of the opinion that there are no company (fellow subsidiary, joint venture associates) under the same management.

13. The Company has recognised deferred tax assets as per AS-22 issued ICAI amounting to Rs. 36,68,540/- on account of timing defference on depreciation and carry forward losses. The deferred tax asset has been recognised since there is a virtula certainity that sufficient future taxable income will be available against which such deferred tax asset can be realised.

14. As informed to us, the dispute with Arrow Syntex Pvt. Ltd. is still pending. Arbitrator is duly appointed by Honble High Court.

15. Provision for Income Tax has not been recognised in the absence of taxable income and MAT is not applicable to the Company since it is a sick Company.

16. Aggregate amount of prior period expenses charged to Profit & Loss a/c-Nil, (previous year - Rs. Nil)

17. Previous year figures have been rearranged and regrouped wherever necessary.

18. Generic Names of Principal Products/Services of Company (As per Monetary Terms)

(i) Item Code No. (ITC Code) 4801 & 4804

Product Description Newsprint & absorben paper

Schedule 1 to 18 forms are Integral part of Balance Sheet and Profit & Loss Account.