1. CORPORATE INFORMATION: The Company was incorporated on 2nd January, 1987 as a private limited company by the name of Orient Press Private Limited. On 5th February, 1991 the Company was converted into a public limited company and the name got changed to Orient Press Limited. The Company came out with the initial public offer in the year 1993 and got listed on NSE and BSE on 21st February, 1994. The Company is engaged in manufacturing activities of printing of capital market stationery, commercial printing like Text book, Annual Reports etc., security printing like MICR Cheques, Dividend Warrants, Shares & Debenture certificates, Railway tickets and coupons etc., computer stationery, telephone scratch cards, smart cards, recharge coupons and note books etc. in Printing Segment and all kinds of packaging materials i.e. flexible packaging material of multi layer film laminates, paper board mono cartons, linear carton, display cartons and outer corrugated boxes etc in Packaging Segment. 2. SIGNIFICANT ACCOUNTING POLICIES : a) BASIS OF brPARATION OF FINANCIAL STATEMENTS The accompanying financial statements have been brpared in accordance with Generally Accepted Accounting Principles in India to comply with the Accounting Standards specified under section 133 of the Companies Act, 2013, read with Rule 7 of the Companies (Accounts) Rules, 2014 and the relevant provisions of the Companies Act, 2013. The Financial Statements have been brpared under the historical cost convention on the accrual basis of accounting. The accounting policies have been consistently applied by the company unless otherwise stated. b) USE OF ESTIMATES The brparation of financial statements in conformity with generally accepted accounting principles requires estimates and assumptions to be made that affect the reported amounts of assets and liabilities and disclosures of contingent liabilities on the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual result could differ from these estimates and the difference between actual results and estimates are recognized in the periods in which the results are known / materialize. c) REVENUE RECOGNITION i) Revenue from Sale of goods, income from delivery / courier charges and income from jobs are recognized on the basis of dispatch of goods. ii) Sales are inclusive of Excise Duty. iii) Dividend including interim is accounted when the right to receive payment is established. iv) Benefits available against exports are estimated at net realizable value and accounted for in the year of exports. Profit /Loss on sale of DEPB/ Status Holder Incentive Scrip is accounted in the year of such sale. d) FIXED ASSETS AND DEbrCIATION i) Fixed Assets are stated at cost (net of Cenvat/ VAT, wherever availed) less accumulated debrciation. Cost includes br-operative expenses and interest on borrowings for the project incurred upto the date of installation. ii) Debrciation on Fixed Assets has been provided on written down value method and computed with reference to the useful life of respective assets specified and in the manner brscribed in Schedule II of the Companies Act, 2013 including pro rata debrciation on additions/deletions made during the year. iii) Premium paid for Leasehold Land is amortised over primary lease period. e) INTANGIBLE ASSETS AND AMORTIZATION Items of expenditure that meet the recognition criteria as mentioned in Accounting Standard - 26 on "Intangible Assets" are classified as intangible assets are amortized over the period of economic benefits. Softwares are stated at cost of acquisition and are amortized on straight line basis over a period of five years irrespective of the date of acquisition. f) BORROWING COST Borrowing costs that are attributable to the acquisition or construction of qualifying assets are capitalised as part of the cost of such assets. A qualifying asset is one that necessarily takes substantial period of time to get ready for intended use. All other borrowing costs are charged to revenue. g) EXCISE DUTY The Company is providing liability for excise duty on finished goods manufactured and remaining in stock. h) INVENTORIES i) Raw Material, Store & Spares, Packing Materials and Fuel are valued at cost or net realisable value whichever is lower. The cost includes the purchase price as well as incidental expenses such as freight and is net of Cenvat/VAT benefit available, if any. ii) Finished Goods and Work-in-progress are valued at cost or net realisable value whichever is lower. Cost includes appropriate allocation of overheads. iii) Waste/Scrap are valued at net realisable value. iv) The cost of base shells is amortised over a period of 8 years from the year of purchase. v) Cost is arrived at on first-in-first-out basis. i) ASSETS ON OPERATING LEASES Lease rental paid/received on assets taken/given under operating lease are recognized as expenses/income on accrual basis in accordance with the respective lease agreements. j) FOREIGN CURRENCY TRANSACTIONS Transactions in foreign currencies are accounted at the exchange rates brvailing on the day of transactions. Gains and losses arising out of subsequent fluctuations are accounted on actual payment / realization. Monetary items related to foreign currency transactions, remaining unsettled at the end of the year are adjusted at the rates brvailing at the end or are stated at the amounts likely to be realized or required to be disbursed, except for those considered doubtful of recovery. The exchange fluctuation arising on account of such adjustments are dealt in the Statement of profit and loss . Non-monetary items are reported by using the exchange rate at the date of transactions. The company enters into forward contracts to hedge its foreign currency exposures. Premium / Discount in respect of outstanding forward contracts at the year end are amortised as expense or income over the life of the contract. k) INVESTMENTS Investments that are readily realizable and intended to be held for not more than twelve months are classified as Current Investments. All other investments are classified as Non-current Investments. Non-current Investments are stated at cost. However, provision for diminution in value is made to recognize a decline other than temporary in the value of the Non-current Investments. Current Investments are stated at lower of cost and fair value and determined on an individual investment basis. l) EMPLOYEE BENEFITS A) Short Term Benefits All employee benefits including bonus/ performance incentives/ex-gratia payable wholly within twelve months of rendering the service are classified as short term employee benefits and are charged to Statement of Profit and Loss of the year B) Long Term Benefits (a) Post-Employment Benefits i) Defined Contribution Plans :-Retirement benefits in the form of Provident Fund, Employees State Insurance and labour welfare are considered as defined contribution plan and contributions to the respective funds administered by the Government are charged to Statement of Profit and Loss of the year when the contribution to the respective funds are due. ii) Defined Benefit Plans :- Retirement benefits in the form of gratuity is considered as defined benefit obligation and is provided for on the basis of an actuarial valuation on projected unit credit method made as at the date of the Balance Sheet. The same is not funded. Actuarial gain/loss, if any are immediately recognized in Statement of Profit and Loss. (b) Other Long Term Benefits i) Leave Encashment Liability on account of leave entitlement of employees in accordance with the policy of the company is provided for on the basis of an actuarial valuation on projected unit credit method made as at the date of the Balance Sheet. The same is not funded. Actuarial gain/ loss, if any are immediately recognized in Statement of Profit and Loss. ii) As per the brsent policy of the company, there are no other long term benefits to which its employees are entitled. m) PROVISION FOR CURRENT AND DEFERRED TAX (i) Provision for current Income Tax is made on the taxable income using the applicable tax rules and tax laws. (ii) Deferred tax assets and liabilities are recognized for timing differences between the accounting and taxable income measured based on the tax rates and the tax laws enacted or substantively enacted at the balance sheet date. Deferred tax assets are recognized only to the extent that there is reasonable certainty that sufficient future taxable income will be available against which such deferred tax assets can be realized. In situations where the company has unabsorbed debrciation or carry forward tax losses, all deferred tax assets are recognized only if there is virtual certainty supported by convincing evidence that they can be realized against future taxable profits. At each Balance Sheet date, the carrying amount of deferred tax assets is reviewed to reassure its realization. n) MINIMUM ALTERNATE TAX (MAT) CREDIT ENTITLEMENT MAT Credit is recognized as an asset only when and to the extent there is convincing evidence that the company will pay normal income tax during the specified period. The year in which MAT credit become eligible to be recognized as an asset in accordance with the recommendations contained in Guidance Note issued by the Institute of Chartered Accountants of India, the said asset is created by way of a credit to the statement of Profit and Loss and shown as MAT credit Entitlement. The company reviews the same at each balance sheet date and writes down the carrying amount of MAT Credit Entitlement to the extent there is no longer convincing evidence to the effect that Company will pay normal income tax during the specified period. o) IMPAIRMENT OF ASSETS An asset is treated as impaired when the carrying cost of assets exceeds its recoverable value. An impairment loss is charged to Statement of Profit and Loss in the year in which an asset is identified as impaired. The impairment loss recognised in prior accounting periods is reversed if there has been a change in the estimate of recoverable amount. p) PROVISIONS, CONTINGENT LIABILITIES & CONTINGENT ASSETS A provision is recognized when an enterprise has a brsent obligation as a result of past event(s) and it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation(s), in respect of which a reliable estimate can be made for the amount of obligation. Contingent liabilities, if material, are disclosed by way of notes. Contingent assets are not recognized or disclosed in the financial statements. q) CONTINGENCIES AND EVENTS OCCURING AFTER THE BALANCE SHEET DATE Event occurring after the date of the Balance Sheet, which provide further evidence of conditions that existed at the Balance Sheet date or that arose subsequently, are considered upto the date of approval of accounts by the Board of Directors, where material. 3. Capital work-in-progress rebrsents fixed assets acquired but not put to use before the end of the financial year and expenses pertaining thereto. 4. Debit and Credit balances are subject to confirmation. 5. In the opinion of Board of Directors, the assets other than fixed assets and non-current investments have value on realisation in ordinary course of business at least equal to the amount at which they are stated except as otherwise mentioned. 6. (i) Provision for taxation for the year ended 31st March 2015 has been made considering the provisions of Section 115JB ofthe Income Tax Act, 1961 (“the Act”) pertaining to Minimum Alternate Tax (MAT). (ii) The Company is entitled to MAT Credit of Rs. 41,85,,600/-,i.e.to the extent of current tax provided under the provisions of MAT of the Income Tax Act for the year and of Rs. 40,36,612/-, for last year which has been recognised as an asset during the year as there are convincing evidence for the realisation of the same. 7. Lease on and after 1st April,2001 Assets taken/given on Operating Leases The Company has taken/given various brmises under cancellable operating leases. These lease arrangements are normally renewable on expiry. The rental expenses (net of recovery) in respect of brmises taken on operating leases was Rs. 59,35,621/-(P.Y. Rs. 55,87,718/-) and rental income in respect of brmises given on operating leases was Rs. 14,40,000/- (P.Y. Rs. 9,00,000/). 8. Prior period expenditure of Rs. 27,33,638/-( P.Y. Rs. 6,40,720/-) debited to Statement of Profit & Loss. 9. Pursuant to enactment of Companies Act 2013, the company has applied the estimated useful lives as specified in Schedule II. Accordingly, the unamortized carrying value is being debrciated over the revised/remaining useful lives. The Company has also initiated amortising Leasehold Land over primary Lease period. The written down value of Fixed Assets whose lives have expired as at 1st April, 2014 have been adjusted net of tax, in the opening balance of Statement of Profit And Loss amounting to Rs. 22,58,456/-. Consequently, debrciation/amortization for the year ended 31.03.2015 is higher by Rs. 34,97,155/-. 10. Disclosure regarding loans given, investments made and guarantee given pursuant to section 186(4) of the Companies Act, 2013 : a) Loans Given - NIL b) Investments made - Refer note no.13 c) Guarantee given- NIL 11. Other additional information required pursuant to Part II of Schedule III of the Companies Act, 2013 are not applicable to the company. 12. Previous year figures have been regrouped, recasted and reclassified wherever necessary to make them comparable with the figures of the current year. 13. Figures have been rounded off to the nearest rupee and those in brackets rebrsent corresponding figures for the brvious year. As per our report of even date For and on behalf of the Board For B.L. Sarda & Associates Chartered Accountants CA B. L. Sarda Partner Membership No. : 014568 R.V. Maheshwari Chairman & Managing Director R.R. Maheshwari Executive Director Sanjay Maheshwari Whole-Time-Director Prakash Maheshwari Whole-Time-Director CA Gopal Somani Chief Financial Officer Meenakshi Anchlia Company Secretary Place : Mumbai Date : 26th May, 2015 |