ANNUAL REPORT 2015-16

1
2 BALLARPUR INDUSTRIES LIMITED
ANNUAL REPORT 2016-17
CONTENTS

02BOARD OF
DIRECTORS
04
AWARDS

05
CHAIRMAN'S
LETTER

07MANAGEMENT
DISCUSSION &
ANALYSIS
14
CORPORATE
GOVERNANCE
24
BOARD'S
REPORT

42INDEPENDENT
AUDITORS’
REPORT 48
BALANCE
SHEET
49
STATEMENT OF
PROFIT AND LOSS

50CASH FLOW
STATEMENT
51
STATEMENT OF
CHANGES IN
EQUITY
52
SIGNIFICANT
ACCOUNTING
POLICIES AND
NOTES TO THE
FINANCIAL
STATEMENTS

84CONSOLIDATED
FINANCIALS

1
BOARD OF DIRECTORS

GAUTAM THAPAR
Chairman

R. R. VEDERAH
Non Executive Vice Chairman

B. HARIHARAN
Group Director (Finance)

SANjAY LABROO

A. S. DULAT

ASHISH GUHA

B. VENUGOPAL
Nominee of LIC

A. P. SINGH

SUDHIR MATHUR

2 BALLARPUR INDUSTRIES LIMITED

ANNUAL REPORT 2016-17
COMPANY INFORMATION
REGISTERED OFFICE
P.O. Ballarpur Paper Mills – 442901,
District Chandrapur, Maharashtra

OPERATING OFFICE
First India Place, Tower-C, Block-A,
Sushant Lok I, Mehrauli Gurgaon Road,
Gurugram – 122002

HEAD OFFICE
Thapar House, 124 Janpath,
New Delhi – 110001

AUDITORS
K.K. Mankeshwar & Co.,
Chartered Accountants
Kingsway, Nagpur – 440001

LISTING ON STOCK EXCHANGES

The Equity Shares of the Company are listed on the following Stock Exchanges:
NATIONAL STOCk ExCHANGE OF INDIA LIMITED
Exchange Plaza, Plot No. C-1, G Block, Bandra Kurla Complex,
Bandra (E), Mumbai – 400051
BSE LIMITED
Phiroze Jeejeebhoy Towers, Dalal Street, Mumbai – 400001

BOARD OF DIRECTORS 3
ANNUAL REPORT 2016-17
AWARDS

UNIT BALLARPUR
National Energy Conservation Award 2015-16
First Prize from Bureau of Energy Efficiency (BEE), Ministry of Power, Government of India.

State Level Energy Conservation Award 2015-16

First Prize from Maharashtra Energy Development Agency, Pune (MEDA).

Energy Management Award 2015-16

Platinum Award by Society of Energy Engineers and Managers (SEEM) in Manufacturing Segments.

Energy Efficient Mill Award 2015-16

By Confederation of Indian Industries, GBC, Hyderabad (CII).

UNIT BHIGWAN
State Level Energy Conservation Award 2015-16
Second Prize from Maharashtra Energy Development Agency, Pune (MEDA).

UNIT SEWA
Kalinga Safety Award 2015 - Silver Category
From Odisha Safety Conclave.

4 BALLARPUR INDUSTRIES LIMITED

ANNUAL REPORT 2016-17
CHAIRMAN'S
Dear Shareholder • Finance costs increased by 96.2% to
` 901 crore.
I have always been frank with you. The
financial situation of your Company is • As a result of sharply reduced total

LETTER serious. Let me start by sharing with you the

consolidated results; then explain why BILT
income and rising finance costs, loss
before tax was ` 1,570 crore, versus a
has got to where it is today; then describe profit of ` 44 crore in the previous year.
the plan that we are putting in place to • Loss after tax was ` 1,862 crore for
financially re-engineer your Company; and FY2017 compared to a loss of ` 279
conclude by commenting on what I believe crore in FY2016.
should happen once a more viable financial
structure is put in place. How did we get to this point? Over the
last seven years, your Company made
First, the results for FY2017. Over the significant debt-financed investments to
last few years, due to both external and modernise and scale up capacities across
internal factors, BILT’s revenues have not most of its Indian manufacturing units as
been sufficient to service the debt that was well as in Sabah Forest Industries (SFI), the
incurred to make necessary capital intensive pulp and paper producing facility acquired
investments in capacity and technology. in Malaysia. These investments were
Consequently, your Company has been necessary to make BILT globally competitive
affected by liquidity constraints. It was in a scenario of growing competition from
difficult in the previous year; and became paper manufacturers in China, the ASEAN
severe in FY2017. The effect of these and South Korea.
constraints show up in the consolidated Some of these investments took longer than
results for FY2017. targeted to come on stream. In addition, the
• Revenue from operations declined by domestic paper market became far more
50.5% to ` 2,121 crore. competitive and price sensitive than before,
thanks to India’s free trade agreements
• Total income reduced by 49.3% to with the ASEAN and South Korea which
` 2,232 crore. have brought down customs duty on paper

CHAIRMAN'S LETTER 5
ANNUAL REPORT 2016-17
and paperboard to zero. Moreover, as I On 31 May 2017, these conditions were Once both these schemes go through, your
had mentioned in my last year’s letter to recommended to the shareholders for Company will have financial headroom to
you, SFI has not been able to generate approval through a postal ballot. Over 99% get back to normal operations, which ought
sufficient returns, largely on account of an of the shareholders who voted, approved to generate higher sales and better results
unrealistically strong Malaysian Ringgit. the financial restructuring scheme. in the years to come. In addition, the Board
The consequences are what you see today: remains on the lookout to sell SFI, a non-core
severe liquidity constraints that have come Consequently, your Company is now asset that is now financially classified as a
in the way of increasing production and empowered to create and issue up to 68.23 ‘discontinued operation’. The Board will also
revenues; and, given the high finance costs, crore equity shares each with a face value be carefully looking at the financial viability
profits turning into losses. of ` 2, at ` 15.83 per share, which is the of some other Units burden. If these remain
price determined in the SDR scheme. These questionable, even under an environment of
What are we doing about it? We had earlier shares will be allotted to banks and financial a lower debt-servicing, the Board will take
tried to access equity capital markets institutions according to the proportion of necessary steps to divest them as well.
twice; unfortunately without success due their outstanding loan exposure to BILT.
to the prolonged after-effects of the global After the allotment, the Joint Lenders Forum I look forward to a financially viable
financial crash. will collectively own 51% of the fully paid up and leaner BILT — one which can earn
equity share capital of your Company. greater revenues despite tight competitive
This time around, for the standalone entity
conditions and do so with lower unit costs.
- BILT, your Company’s Board of Directors While this debt-to-equity conversion sharply The breathing room has been given. It is
authorised a Committee of Directors reduces the shareholding percentage of the now up to your Company’s management
to consider and recommend a financial promoter group, it is the correct thing to do to deliver, as I hope it shall in FY2018 and
restructuring plan under the Strategic Debt to resuscitate the health of your Company. thereafter.
Restructuring (SDR) scheme of the Reserve By significantly reducing the debt overhang
Bank of India. Based on the Committee’s Thank you for your support in the last few
even at the standalone level, BILT benefits
work, the Board recommended: challenging years. Let us hope that with your
from lower debt-servicing costs. All else
support and the Management’s best efforts,
• Reclassification of the Company’s being equal, it gets the necessary additional
your Company will profitably stride forth yet
authorised share capital by which it (a) liquidity to ramp up production and
again.
doubled the number of ordinary equity revenues, which it could not earlier because
shares having a face value of ` 2 each of cash constraints. With best wishes,
from 75 crore shares to 150 crore shares;
I should also mention that your Company’s
and (b) reduced preference shares
step-down subsidiary, BILT Graphic Paper
having a face value of ` 100 each from GAUTAM THAPAR
Products Limited, also has a large debt
2.5 crore shares to 1 crore shares. Chairman
position. The Management is presently
• Converting a significant part of the formulating a deep debt recasting plan,
outstanding debt to equity by issuing which includes working with an asset
equity shares through preferential restructuring company. As I write, a process
allotment to the accepting parties is actively being pursued to restructure the
comprising the Joint Lenders Forum loan and infuse additional capital to turn
under the SDR scheme. around the business.

6 BALLARPUR INDUSTRIES LIMITED

ANNUAL REPORT 2016-17
MANAGEMENT DISCUSSION
& ANALYSIS
INTRODUCTION • Specialty Paper
• Tissue Paper
BILT’s businesses operate through two
separate blocks: one under the standalone • Rayon Grade Pulp
entity BILT, and the other under its step-
Over the last few years, due to several factors
down subsidiary Bilt Paper B.V.
external and internal to the Company, growth
Under the standalone entity, BILT, the in revenue and in the scale of operations
businesses target the industrial and FMCG have not been in line to service the quantum
markets and include: of debt that was earlier incurred to make
the necessary investments in capacity and
• Speciality paper business operating from technology. Consequently, during FY2017,
the Shree Gopal facility in Haryana. BILT’s operations and performance were
severely affected by liquidity constraints.
• Rayon grade pulp business operating
Given below are the consolidated results for
from Kamalapuram in Andhra Pradesh.
FY2017.
• Tissue paper business operated through
• Revenue from operations declined by
its subsidiary, Premier Tissues (India)
50.5% to ` 2,121 crore.
Limited.
• Total income reduced by 49.3% to
The other block of businesses comes under
` 2,232 crore.
Bilt Paper B.V, which focuses on the wood-
free printing and writing paper, coated and • Finance costs increased by 96.2% to
uncoated. This is the Company’s primary ` 901 crore.
business portfolio. Here, the focus is on the
commercial printing business (both reel and • As a result of sharply reduced total
sheet) and the desktop printing business income and rising finance costs, loss
through copier paper. There is also the before tax was ` 1,570 crore, versus a
production of high value bio-degradable profit of ` 44 crore in the previous year.
high-end packaging. Bilt Paper B.V. has two
• Net loss after tax was ` 1,862 crore for
step down subsidiaries, namely:
FY2017 compared to a loss of ` 279
• BILT Graphic Paper Products Limited crore in FY2016.
(BGPPL), which is an asset heavy entity,
and has four plants in India: Ballarpur, During the course of FY2017, two strategic
Bhigwan and Ashti (all in Maharashtra) asset sales of the Company did not
and Sewa (in Odisha). materialise. The first was the SFI Malaysia
• Sabah Forest Industries Sdn. Bhd. (SFI), stake sale to Pandawa Sakti (Sabah) of
which operates the pulp, uncoated Malaysia; the second was the sale of the
wood-free and plantation businesses in Ballarpur and Ashti Units to J K Paper.
Malaysia. Consequently, the expected improvements
in the balance sheet position did not
Through this structure, BILT addresses the happen and the financial condition of the
following portfolio: Company was put under further stress.
As of 31 March 2017, on a consolidated
• Writing and Printing Paper – India and
basis, total borrowings of the Company
Malaysia
(including long and short term) were ` 7367
• Office Supplies and Stationery crore, and other financial liabilities stood at
• Retail under the brand P3 ` 2781 crore.

MANAGEMENT DISCUSSION & ANALYSIS 7

ANNUAL REPORT 2016-17
*The Company, therefore, has initiated These conditions were recommended for The Writing and Printing Paper Business
efforts to restructure this unsustainable approval of shareholders of the Company
BILT is one of India’s leading writing and
level of debt at two levels: through postal ballot. The postal ballot
printing paper manufacturer with some
notice dated 31 May, 2017 was sent to all
• A Strategic Debt Restructuring (SDR) export foot print as well. It also has a material
shareholders of the Company. The results
effort with the banks for the stand-alone presence in the Malaysian market through a
of the postal ballot for the restructuring
subsidiary, Sabah Forest Industries.
entity, namely BILT . scheme were as follows:
• Shareholders representing 393,919,430 Over the years, the Company has developed
• A deep debt recasting initiative for the equity shares of the Company — or 60% a range of quality products supported by
step-down subsidiary i.e. BILT Graphic of the total equity shares — voted on the wide reaching and efficient distribution to
Paper Products Limited (BGPPL) postal ballot. build a strong market position. A key element
• Of these, 393,850,818 shares — or of BILT’s business has been continuous
Strategic Debt Restructuring: BILT
99.98% of the equity shares that voted efforts on innovation and introduction of
in the postal ballot — voted in favour of new products across applications. This wide
Given the growing debt burden of the
the restructuring scheme. range of diversified offerings has provided
Company, and its consequential impact on
it with competitive impetus in the markets.
operations and cash flows, the Board of Consequently, the Company has been now Across the product spectrum, BILT has set a
Directors, at its Board meeting on 23 May empowered by its shareholders to create and very high standard in terms of quality, which
2017, authorised a Committee of Directors issue up to 68,22,79,915 (sixty eight crore has emerged as a key differentiator in the
— comprising a majority of Independent twenty two lakh seventy nine thousand nine competitive markets where it operates.
Directors — to consider and recommend a hundred and fifteen) equity shares, each
financial restructuring and fund raising plan having a face value of ` 2, at ` 15.83 per The product range is well supported by a
under the Strategic Debt Restructuring (SDR) equity share, which is the price determined strong and unique distribution mechanism.
scheme of the Reserve Bank of India (RBI), in accordance with the SDR Scheme. These In its core market, India, BILT has a multi-
subject to necessary approvals from the shares will rank pari passu in all respects tiered distribution network with a balanced
lending banks and financial institutions. with the existing fully paid up equity shares mix of exclusive and multi-brand distributors.
of the Company. These shares will be given In Malaysia, sales are handled through some
Subsequently, at a Board meeting on 31 May through preferential allotment to banks 40 distributors. In addition to these principal
2017, the Board of Directors recommended, and financial institutions (or the ‘Proposed markets, the Company enjoys a good market
subject to necessary approvals from the Allottees’) according to the proportion of presence in the Middle East and Africa.
shareholders of the Company: their outstanding loan exposure to the
The Paper & Pulp Industry and India
Company. After this allotment, the allottees
Markets
• Reclassification of the authorised share shall collectively own 51% of the fully paid
capital of the Company from ` 400 crore up equity share capital of the Company. Paper consumption in India has been below
divided into (a) 75,00,00,000 equity its potential. While India hosts 17% of the
With this significant conversion of debt to
shares having a face value of ` 2 each, world’s population, it accounts for only
equity in favour of the lenders, the Company
and (b) 2,50,00,000 preference shares about 3% of global production of paper and
will have a much lower and more serviceable
having a face value of ` 100 each to paperboard. The gap between potential and
debt burden. That should create the financial
` 400 crore divided into (a) 150,00,00,000 actual demand is best seen in the per capita
headroom needed to get back to higher
equity shares having a face value of ` 2 numbers. India’s per capita consumption of
revenues and better operational results in
each, and (b) 1,00,00,000 preference paper is estimated at barely 11 kg compared
the years ahead.
shares having a face value of ` 100 each. to 75 kg in China, 158 kg each in the
Deep Debt Restructuring: BGPPL European Union, Korea, Taiwan, Hong Kong,
• Issue of such number of equity shares Singapore and Malaysia, 218 kg in Japan, and
For the step-down subsidiary, BGPPL, 224 kg in North America. The global average
of the Company to the lenders upon
which also has a large debt position, itself is a healthy 56 kg.
conversion of debt into equity as
the Company is working on a deep debt
approved by the Joint Lenders Forum recasting plan. This includes working with This gap, however, has led to significant
under the SDR scheme of the RBI through several options including one that involves pent up demand in the country over the last
the preferential route, in terms of an asset restructuring company. A process is decade — driven by rising levels of literacy,
applicable provisions of the Companies underway to restructure the loan and infuse improving well-being of the people and
Act, 2013, as well as the regulations and additional capital to provide the necessary surging aspiration levels. Thus, despite its
guidelines given by the Securities and funds to effectively operate the plants and low base, India is the fastest growing market
Exchange Board of India (SEBI). turnaround the business. for paper.

* This section contains material development post the approval of the MDNA by the Board of Directors.

8 BALLARPUR INDUSTRIES LIMITED

ANNUAL REPORT 2016-17
Demand for paper has been growing at Even as the industry is grappling with the end of the market with the blade coated
around 8% per year for some time. According issue of producing paper and paperboard products growing by 8%, which is BILT’s
to industry estimates, the domestic market at competitive costs, the problem has primary focus area.
or consumption of paper is over 16 million been exacerbated by the Government of
metric tons per annum (MTPA), with over India’s policy of extending preferential The coated market can also be segregated in
2 million MTPA being imported. By 2024- tariff treatment to paper and paperboard two ways. First, in terms of one-side coated
25, under the baseline scenario, domestic under the free trade agreements (FTAs) (C1S) and both-sides coated (C2S). Second, in
consumption is projected to rise to 23.5 and other bilateral and multilateral trade terms of paper and board products. Within
million MTPA; and in the optimistic scenario, agreements. Thus, while domestic industry the blade coated products segment, the C2S
consumption is expected to rise to 36.9 is operating under extremely challenging paper market grew by over 9.5% to 412,000
million MTPA. What this means is that about conditions, substantial quantities of paper MTPA and the C2S board market grew by
1 million MTPA of integrated pulp, paper and paperboard is imported into the country over 9% to 196,000 MTPA in FY2017.
and paperboard capacity has to be created at significantly lower costs under the aegis
in India on an annual basis over the current Being a value-added product, coated
of the FTAs.
capacity to domestically meet the growing wood-free paper traditionally enjoyed a
demand. Under these conditions, there is a very price and quality premium. However, with
serious threat of several large scale rapid market expansion and rise in import
While the industry has already made volumes, especially from the ASEAN, China
investments in capacities in the recent past
significant capital investments to ramp-
turning economically unviable. Domestic and South Korea, the segment is rapidly
up capacities, the gestation period is long.
industry has invested huge amounts to getting transformed into a competitive,
Moreover, the economic viability of such
upgrade and implement initiatives like commodity-like product space where price
investments are impacted significantly by
clean technology, product quality and farm is becoming the critical factor.
availability and cost of raw materials and
other inputs. In addition, with falling global forestry. The inability to scale up production
BILT continued to enhance customer
paper prices, global players have targeted and supply as per plan has affected the
service through a multi-format distribution
the Indian market. Consequently, imports industry considerably.
network, with a focus on reducing product
have increased at lower prices.
During FY2017, BILT was no exception to costs through higher scale of operations and
India is a wood-fibre deficient country. this difficult industrial condition. Given better efficiencies in production. However,
Inadequate domestic supply of raw material the gestation lag between large scale some of these initiatives were affected by
is a major constraint for the Indian pulp and investments made in the recent past and the the non-availability of soft wood pulp and
paper industry, especially in a milieu where ability to scale up revenues — made worse the Company’s financial constraints.
there is no dedicated enabling policy for by international competition — there have
industrial plantation. The present demand Uncoated Wood-Free
been major capital and fund constraints
for wood by the paper industry is about 11 faced by the Company, which have adversely During FY2017, the Indian uncoated market
million MTPA versus domestic availability of affected its operations. Thus, as mentioned — comprising Low Bright and Hi Bright
9 million MTPA, and the demand is projected earlier, revenue from operations fell segments — grew by 2% to 12,93,000
to rise to 15 million MTPA by 2024-25. considerably while finance costs rose to MTPA, and the competition continued to
Consequently, wood prices have gone up unviable levels, which led BILT to go in for
steeply, more than doubling in the last three be intense. The market remains largely
the SDR scheme. restricted to domestic players and is highly
to four years which, in turn, has seriously
affected competitiveness of the Indian paper BILT’s Writing and Printing Paper Business fragmented with a multitude of products
industry. and manufacturers. However, in the last
BILT’s writing and printing paper business couple of years, imports from Indonesia and
Increasing cost of raw material and energy can be divided into four categories: coated China have started making an impact in this
has resulted in a substantial increase in the wood-free, uncoated wood-free, copier market.
cost of domestic manufacture of paper and paper and creamwove.
paperboard. Such input price pressures, BILT maintains its strong position as an
coupled with relatively high cost of capital, Coated Wood-Free organised player in this space by offering a
have opened the Indian market to growing wide range of products. The Company has
imports — leading to under-utilisation of In India, demand for this category of paper laid greater importance on optimising its
the existing domestic production capacity. outstrips supply. However, much of the gap product mix for greater profitability. With
Imports of paper, paperboard and newsprint continues to be met by imports. In numeric
this objective, BILT has focused on the higher
into India have been steadily increasing. terms, coated wood-free consumption in
value Hi Bright paper, which accounts for
In the last five years, imports have risen at India increased by around 7% to 820,000
around 74% of the entire uncoated maplitho
a CAGR of 11.4% in value — from ` 7,152 MTPA in FY2017. In terms of value addition,
segment. Hi Bright paper grew by 5.4% in
crore in 2010-11 to ` 12,284 crore in 2015- the segment has three categories: blade
FY2017.
16. These have increased at 7.9% per year coated, air knife and cast coated products,
in terms of volume, from 1.8 million MT in ranked in decreasing order of technology. BILT’s major brands in this segment include
2010-11 to 2.6 million MT in 2015-16. Growth has been higher in the premium Magna and Wisdom Print, which are used

MANAGEMENT DISCUSSION & ANALYSIS 9

ANNUAL REPORT 2016-17
for the notebook and publishing segment; account of working capital constraints faced Implementation of various energy
Sunshine Super Printing Paper, which is used by the Company. Details of operational conservation initiatives across the pulp and
for offset printing; and Three Aces Natural developments across the different Units are paper manufacturing process resulted in
Shade Deluxe (T.A.NSD), which is used for given below: reduction in steam and power consumption.
commercial printing.
Unit: Ballarpur Ballarpur: Awards
Copier
At Ballarpur, total paper production was • First Prize in National Energy
Essentially, copier paper is a forward 147,321 MT in FY2017 against 247,649 MT Conservation Award 2015-16 from
integration of the uncoated wood-free paper in FY2016. The new pulp mill produced the Bureau of Energy Efficiency (BEE),
segment. It comprises maplitho paper cut in 122,379 air dry metric ton (ADMT) of Ministry of Power, Government of India.
sizes with product characteristics that are bleached pulp in line with the captive pulp
best suited for desktop printing and copying. requirements. This mill was installed in 2013 • First Prize in State Level Energy
with the latest process technology such Conservation Award 2015-16 from
Over the last few years, with rapid computer as continuous cooking for pulping and ECF Maharashtra Energy Development
penetration in India, copier has been a fast bleaching processes. The Ballarpur and Ashti Agency (MEDA), Pune.
growing segment. The mill-packed copier mills are now fully integrated with this pulp
market in India grew by 12% during FY2017 • Platinum Award in Energy Management
mill for hard wood pulp supply.
to 940,000 MTPA. In this segment, too, 2015-16 by Society of Energy Engineers
there is increased supply due to imports In line with the Company’s focus on product and Managers (SEEM) in Manufacturing
from ASEAN countries. This has led to more quality and servicing, the Ballarpur mill Segments.
intense competition among the major significantly improved the quality packing
• Energy Efficient Mill Award 2015-16 by
players in the Indian paper industry, with of paper reels by installing a new radial reel
Confederation of Indian Industry (CII).
multiple brands at various price points. wrapping machine during the year.
With four major brands in the market, Copy Unit: Bhigwan
Power, Image Copier, Ten on Ten and BILT Ballarpur: Environment Management and
Matrix, BILT continues to maintain a strong Resource Conservation At Bhigwan, total paper production was
presence in this segment. 102,614 MT in FY2017 against 275,628
During FY2017, Ballarpur undertook several
MT in FY2016. In pursuing continuous cost
Creamwove energy conservation initiatives which
reduction, new indigenous vendors were
enabled the mill to successfully surpass
developed for acrylic latex, coating starches;
This is a high volume, low value segment. In the Perform, Achieve, Trade – I (PAT-I)
and the use of ultrafine carbonates were
volume terms, it is by far the largest segment cycle targets for energy reduction set by
introduced to reduce dependence on
in India. It is characterised by several the Bureau of Energy Efficiency (BEE) of
imported clay for coating formulations. These
producers, each with sub-optimal capacities the Government of India. It is now fully
initiatives resulted in reduction in production
operating in a highly price sensitive market geared up to meet the PAT-II targets as well.
cost. On the product development front,
which has been stagnant and estimated Consequently, the mill has received 16,587
the mill successfully developed interleaving
at 1.5 million MTPA in FY2017. BILT has E-Certificates from the BEE which can be
paper of 38 gsm for printing plates.
strategically maintained a minimal presence sold in the energy exchange once trading
in this segment. begins. Bhigwan: Environment Management and
Resource Conservation
RETAIL During FY2017, the Unit has implemented
several initiatives for reduction in water The following key initiatives were
The Company’s retail business has been consumption. The latest process technologies undertaken during FY2017 to reduce energy
merged with the primary operations. As incorporated in the new pulp mill such as consumption, which enabled the mill to
a result, some product lines have been continuous cooking and ECF bleaching also successfully achieve the PAT- I targets.
synergised with the main line business; and contributed significantly towards reducing
distribution channels have been realigned the effluent load. The mill’s Effluent • Installed additional air receiver at OMC
to best leverage the brand strengths in a re- Treatment Plant (ETP) is equipped with the to take care of instantaneous high
structured format. most modern treatment systems like MBBR volume requirements. This has resulted
(Moving Bed Bio-film Reactor) and DAF in reduction in mill-wide air pressure
BILT’s Operations in India
(Dissolved Air Floatation) effluent treatment and consequently air consumption in the
BILT’s writing and printing paper process technologies. These enable the plant.
manufacturing operations under its mill to significantly improve the quality of
• Replaced conventional light with LED
step-down subsidiary Bilt Paper has four final treated effluent. Online Continuous
lights on all high tension panels.
production Units across India. These Emission Monitoring System (CEMS) and
are: Ballarpur (in Maharashtra), Bhigwan effluent quality monitoring system has been • Optimised mill-wide drive frequency.
(Maharashtra), Sewa (Odisha) and Ashti provided, which is connected to the MPCB/
(Maharashtra). Across all four Units, there CPCB server for transmission of real time In terms of water conservation, the mill
has been lower production primarily on data. successfully recycled part of the ETP effluent

10 BALLARPUR INDUSTRIES LIMITED

ANNUAL REPORT 2016-17
through the RO Plant to conserve fresh Operations in Malaysia emissions’, comply with the norms laid
water during peak summer season. This down by Haryana State Pollution Control
Sabah Forest Industries Sdn.Bhd. (SFI)
resulted in savings of approximately 50 cubic Board (HSPCB). On-Line real time monitoring
metres per hour of fresh water. During FY2017, SFI produced 22,498 MT of of stacks emission and treated effluent has
paper against 75,911 MT in FY2016. Out of been installed and commissioned. The
Bhigwan: Awards and Achievements
this, 5,739 MT was exported. Total bleached following resource conservation initiatives
• Second Prize in State Level Energy pulp production was 20,279 ADMT in FY2017 were implemented during the year:
Conservation Award 2015-16 from against 93,128 ADMT in FY2016. Production
Maharashtra Energy Development was affected by shortage of raw material • Reduced fresh water consumption by 34%.
Agency (MEDA), Pune. supply and financial liquidity constraints.
• Improved bleached pulp yield by 0.3%.
• Received 4 Star ratings (out of 5 Stars), Initiatives were undertaken to improve
product quality and reduce costs. The • Reduced energy consumption in the
from MPCB (Maharashtra State Pollution
main focus was to maintain consistent plant which enabled the mill to achieve
Control Board) for achieving low
pulp quality through usage of chemical PAT-I targets. The mill also sold 14,906
emission of Particulate Matter.
additives in the pulping processes. Also, Renewable Energy Credit (RECs) in
• Finalist for RISI PPI Award 2016 for the as part of the resource conservation FY2017 out of 34,830 RECs earned In
following categories : initiatives, SFI continued with its efforts to FY2016.
maintain consistent and higher ash levels
Bio Strategy Award. in the paper by using new technologies for In addition, the Unit successfully conducted
saving fibre consumption. During SFI’s low surveillance audits of QMS (ISO 9001), EMS
Water Efficiency Award.
production period, the mill not only focused (ISO 14001), OHSAS 18001 and EnMS (ISO
• Re-certification of ISO Audit (ISO 9001, on significantly cutting down fixed costs but 50001).
ISO 14001, OHSAS 18001 & ISO 50001) also on preventive maintenance.
TISSUE AND HYGIENE PRODUCT
carried out in December, 2016.
Specialty Paper Business BUSINESS: PREMIER TISSUES (INDIA)
Unit: Sewa LIMITED
The specialty paper business focuses on the
Sewa had very minimal production during industrial segment of the paper market that Unit: Mysore
FY2017 due to shortage of raw material and deals with specialised categories like bond
working capital. Under these conditions, in paper, super cartridge, executive brief card, In the FY2017, Premier Tissues (India)
order to manage fixed costs, most of the Matrix multipurpose paper, BCB etc. The Limited (PTIL) maintained its leadership
management staff, barring the minimum assets of this business are directly under position in the retail segment in a market
required at Sewa, were relocated to other BILT and comprise the plant at Shree Gopal which is gaining momentum but becoming
(Haryana). more competitive with the entry of
mills. Contract labour engagement was
brought down to zero after discussions with organised international players offering high
Unit: Shree Gopal
labour unions and the office of the Deputy quality products at extremely competitive
Labour Commissioner. There was particular Paper production at Shree Gopal was 27,026 prices. The market has also witnessed
focus on other fixed costs and these were MT in FY2017 versus 73,492 MT in FY2016. increased consumer awareness because of
brought down to the bare minimum. The Unit undertook the following initiatives the exposure to superior and high quality
to improve customer service: products. PTIL is holding to its strength
Sewa: Award with increased focus on servicing retail and
• Developed BILT EDGE paper of 105 gsm
Odisha State Prestigious "Kalings Safety modern trade channels, and by introduction
for the carry bags segment.
Award-2015" in silver category from Safety of some new high quality, innovative
Conclave held in September, 2016 at • Modified the shade of BILT Maplitho products made from imported tissue.
Bhubaneshwar. Natural Shade paper in the 60-119 gsm
range to meet customer demand. During FY2017, PTIL has made inroads to
Unit: Ashti the online retail grocery segment, which
• Developed REB on PM2. is at a nascent stage, by bagging contracts
Ashti produced only 5,974 MT of paper with online grocery marketers. The overall
in FY2017 against 43,478 MT in FY 2016. • Mill switched from rosin-based sizing
contribution of sales from modern trade was
An additional 5,000 MT of copier paper, to AKD to produce alkaline sized paper
at 32%.
produced at Ballarpur, was converted at on all paper machines. This will enable
Ashti to service the customers. Production the use of PCC as the filler to further In the last quarter of the FY2017, PTIL has
was adversely affected since June 2016 due improve product quality. taken steps to enhance its output capabilities
to working capital constraints. Under these by engaging in strategic tie-ups for
Shree Gopal: Environment Management
adverse conditions, the mill focused on outsourcing production of customised tissue
and Resource Conservation
significantly cutting down fixed costs. It also products. This will ensure maintenance
stressed on preventive maintenance and At Shree Gopal, the achieved norms of demand and supply equilibrium in the
future efficiency improvement activities. of ‘treated effluent’ and ‘boiler stacks medium to long term.

MANAGEMENT DISCUSSION & ANALYSIS 11

ANNUAL REPORT 2016-17
On the brand building front, PTIL has initiated and tools for talent acquisition. This is With activities spanning over a decade,
some actions to further strengthen the further facilitated by correct utilisation of there are thousands of farmers today who
brand with low cost and highly innovative talent through different initiatives including are associated with AAL’s farm forestry
consumer engagement modules by way of job rotation, career progression and programme. AAL has a strong network
schemes and improved packaging. It remains adequate succession planning. In alignment of qualified forestry staff to motivate the
focused on maintaining its dominant player with the current business requirements, farmers and provide service support at
status in the retail segment of the tissue talent acquisition during the year was largely their doorstep. It is currently operating its
industry. focused on business critical replacement farm forestry programme in the states of
positions. Odisha, Madhya Pradesh, Chhattisgarh and
RAYON GRADE PULP BUSINESS Maharashtra.
Talent retention was another area of keen
Unit: Kamalapuram focus for the year. Despite the difficult To strengthen the programme and increase
business scenario, BILT managed to contain its acceptability among farmers, especially
The India-based pulp business operates out among tribal communities in the catchment
attrition and retain key talent.
of facilities at Kamalapuram, in the district of areas of its mills, AAL supplies high quality,
Warangal in Telangana. It mainly produces Industrial relations continued to be peaceful fast growing, site-specific planting stock with
rayon grade pulp for manufacture of Viscose in all the plant locations. During FY2017, the technical know-how. It has environmentally
Staple Fibre (VSF) and Viscose Staple Yarn Company successfully managed to arrive controlled global standard nurseries in
(VSY). at amicable solutions for workmen related Maharashtra and Odisha with a capacity
issues at the various Units. to produce 20 million clonal plants of
Over the last three years, this market has
eucalyptus and casuarinas.
been under severe pressure due to several Information Technology (IT)
reasons, which made the operations of The production programme is supported by
this Unit unviable. Accordingly, the plant During FY2017, the IT team at BILT was very strong R&D to improve the genetic stock of
remained shut during FY2017. To make the focused on technology consolidation, IT planting material to yield more productivity.
plant operations viable, representation cost management and business continuity. AAL has formed research collaborations
was made to the State Government for The Oracle ERP landscape was augmented with premier Indian research institutes
granting subsidies on inputs and power for manufacturing and order management, like Institute of Forest Genetics and Tree
so that the manufacturing activities could thereby enhancing the opportunity for Breeding (IFGTB), Coimbatore, and the
be restarted. This has been considered better process integration and reliable Forest Research Institute (FRI), Dehradun.
favourably by the Government of Telangana, decision support system. On the technology
front, the Company has consolidated its core The main objective of the AAL’s farm forestry
which has issued an order granting subsidy
infrastructure at a data centre and initiated programme is to grow wood on a sustainable
on power for a period of seven years and
basis in the catchment area of the paper mills.
on wood for a period of five years. The final the cloud journey by adapting O-365
To achieve this and to generate awareness,
Memorandum of Understanding (MoU) platform. These initiatives have helped to
a series of exposure visits of farmers are
with the Government of Telangana is under strengthen business continuity and manage
conducted to the production nurseries
discussion. A plan for restarting the mill will IT cost.
and well established plantations. Regular
be prepared after concluding this MoU.
Recognizing the paradigm shift towards training programmes are also conducted for
Human Resource (HR) global adoption of technologies on digital farmers to educate and update them on the
platforms, BILT has embarked on preparing techniques of raising pulpwood plantations
HR plays a critical role in sustaining and a digital strategy for the organisation to yield maximum productivity from their
supporting an organization in tough times. which pivots around the ‘consumer’ and land.
BILT’s HR rose to the need of the hour and the ‘employee’. In the meanwhile, BILT
In FY2016-2017, AAL raised pulpwood
contributed in all relevant and related continues its thrust on business continuity
plantations in 7,000 hectares of farmland,
areas. The HR activities in FY2017 were initiatives as well as people productivity for thus benefiting approximately 10,000 small
largely oriented towards alignment with the the finance function and the management and marginal farmers in the catchment area
business and market needs. team. This is being primarily addressed by of BILT’s paper mill units.
implementing Oracle Financial Consolidation
The strategic focus of the function in FY2017 Internal Controls and their Adequacy
tools. The initiative will further strengthen
was to bring efficiencies both in the approach
the budgeting and planning process along
and the process. Close coordination and BGPPL/BILT has a wide-ranging system of
with the decision support system.
synergy between the HR and Industrial internal controls to safeguard and protect
Relations activities across geographies led Farm Forestry all assets against loss from unauthorised
to the desired harmony and results, which use or disposition and to ensure accurate
often required downsizing. Through its subsidiary, Avantha Agritech recording and reporting of all transactions.
Limited (AAL), formerly Bilt Tree Tech This framework is supported by a robust
Employee engagement starts from right Limited, BILT continues to work with the process of internal audits, review by the
talent acquisition and this is ensured farming community to plant tree species Management and the Audit Committee of
through deployment of the right resources that are suitable for pulpwood. the Board of Directors.

12 BALLARPUR INDUSTRIES LIMITED

ANNUAL REPORT 2016-17
Annual Audit Plans are prepared at the RISkS CAUTIONARY STATEMENT
beginning of the year, specifying areas to be
Apart from regular business risks inherent Statement in this Management Discussion
covered and timing of the execution of the
in any business, there are some that are and Analysis describing the Company’s
plan. This is reviewed and approved by the
specific to the paper industry. objectives, projections, estimates and
Audit Committee. Quarterly Audit Reports
expectations may be ‘forward looking
on observations and progress on the annual • Digitisation: With increased digitisation, statements’ within the meaning of
audit plan are submitted to the Management paper is getting substituted. While such applicable laws and regulations. Actual
and the Audit Committee of the Board. a trend is not expected to be seen in results may differ substantially or materially
BILT’s primary markets of India and from those expressed or implied. Important
The internal controls are designed to ensure
South East Asia in the immediate future, developments that could affect the
that financial and other records are reliable
the risk exists and can suddenly multiply. Company’s operations include a downward
for preparing financial information and
trend in the paper industry, rise in input
ensuring adequacy of backup and relevant • Raw material: Paper production at costs, exchange rate fluctuations, and
approvals based on the formal Delegation BILT/BGPPL is wood based. With forest significant changes in the political and
of Authority matrix which is approved by and climate related restrictions, there economic environment in India, environment
the Board. For all critical processes, there is always the risk of scarcity of raw standards, tax laws, litigation and labour
exist documented policies, procedures and materials as well as volatility in prices. relations
guidelines. BILT/BGPPL has hedged against this risk
with its initiatives in farm forestry and
BGPPL/BILT has adopted preventive as well development of alternate sources.
For and on behalf of the Board of Directors
as Risk and Controls Matrix based audits to
assess processes, validate effectiveness of • Competition and pricing: There is GAUTAM THAPAR
controls and implement requisite corrective an increasing risk of having to face Chairman
actions, which are reported and reviewed by market pressures in an industry already DIN 00012289
Management and the Audit Committee of characterised by zero customs duty on
imports from all ASEAN countries. BILT/ B. HARIHARAN
the Board of Directors.
BGPPL has been proactively pre-empting Group Director (Finance)
BGPPL/BILT has also adopted the Group this risk and its businesses strategy is DIN 00012432
Risk Management policy. Accordingly, all geared to overcome this challenge.
Date 23 May, 2017
operational processes are covered to assess • Capital: Due to the highly capital Place New Delhi
the risk level. Enterprise risks are tracked and intensive nature of investments in this
reviewed by the operational management industry, the Company is constantly
team and steps are taken to reduce or focused on driving down associated
mitigate the impact. risks.

MANAGEMENT DISCUSSION & ANALYSIS 13

ANNUAL REPORT 2016-17
CORPORATE
GOVERNANCE
CORPORATE GOVERNANCE committed to maintaining strict compliance
PHILOSOPHY with the letter and spirit of Chapter IV
aforesaid.
Sustainable business practices are the
cornerstone of Ballarpur Industries Limited This chapter, along with the chapters on
(‘the Company’ or ‘BILT’) business philosophy Management Discussion & Analysis and
to deliver long term value to all stakeholders General Shareholders’ Information, reports
including shareholders, customers, partners, BILT’s compliance with Schedule V of Listing
employees and society at large. The Regulations.
Company’s Corporate Governance system
BOARD OF DIRECTORS
provides the fundamental framework for the
Company to execute its business in line with COMPOSITION
such a business ethos.
As on 31 March, 2017, the Company had
The Corporate Governance philosophy is ten members on the Board of Directors. The
enforced on the principles of adhering to Board comprises a non-executive Chairman,
strong value systems, integrity and fairness Mr. Gautam Thapar, who is a Member of the
in all dealings and a strong commitment Promoter Group; one executive Director —
to objectivity in decision making. This is Mr. B. Hariharan, who is Group
firmly established through a high degree of Director (Finance); six Independent
transparency in disclosures and engagement Directors: Mr. Sanjay Mohan Labroo,
across the organization and with all Mr. A. S. Dulat, Mr. Ashish Guha, Mr. A. P. Singh,
stakeholders. Ms. Nandini Adya and Mr. Sudhir Mathur
At BILT, the Corporate Governance systems (appointed w.e.f. 7 February, 2017); and two
are anchored by a strong and Independent non-Independent non-executive Directors:
Board of Directors providing the Company Mr. R. R. Vederah — non-executive Vice
oversight and strategic counsel. The Chairman, an ex-employee and Mr. Bhaskaran
Company’s established systems and Nayar Venugopal {Nominee Director of the
procedures ensure that the Board remains Life Insurance Corporation of India (LIC)}.
well-informed and well-equipped to fulfill Ms. Nandini Adya resigned from the
its governance responsibilities and provide Directorship of Company w.e.f 19 May, 2017.
management with the strategic direction for All the Directors are eminent personalities
sustainable value creation. and experienced professionals in business,
law, finance and corporate management.
The corporate secretarial department and
the internal audit function of the Company The composition of the Board of Directors
remains committed to adopting best-in- of the Company is in conformity with
class practices of Corporate Governance and Regulation 17 of Listing Regulations. Table
internal controls. In FY2017, as BILT focused 1 gives the details of the Directors on the
on executing its business plans, the Company Board.
remained focused on regular monitoring of None of the Directors of the Company are
strategic issues and risk management, which related to each other.
included both evaluation and mitigation.
BOARD MEETINGS
In India, Corporate Governance standards
for listed companies are regulated by the There were four Board Meetings held in
Securities and Exchange Board of India 2016-17 (1 April, 2016-31 March, 2017): 30
(SEBI) through Chapter IV of Securities and May, 2016, 1 September, 2016, 5 December,
Exchange Board of India (Listing Obligations 2016 and 7 February, 2017. The Board
and Disclosure Requirements) Regulations of Directors of the Company is provided
2015 {Listing Regulations}. BILT remains with all the statutory and other significant

14 BALLARPUR INDUSTRIES LIMITED

ANNUAL REPORT 2016-17
and material information to enable it to meetings. Although the Directors are DIRECTORS’ COMPENSATION
discharge its responsibilities as trustees of familiar with the operations of BILT, the The Directors are paid compensation, as
the Shareholders. A Meeting of Independent Company arranges plant visits, presentations approved by the Board and Shareholders
Directors was held on 23 May, 2017. on different operations by functional heads, within the ceilings prescribed under the
which further provides better insight to the Companies Act, 2013.The Non Executive
Table 1 gives the details of Directors’
attendance at the Board Meetings and Board on the Company’s operations and Directors are paid sitting fees for attending
the Annual General Meeting held during interaction with the Management as well meetings of the Board and its Committees
the year, the number of Directorships and as to familiarize the Directors about the and profit related commission, if any. The
Committee Chairmanships /Memberships Company. remuneration paid to the Directors for 2016-
held by them in other public limited 2017 is given in Table 2.
The Board regularly discusses and
companies. Other Directorships do not NON ExECUTIVE DIRECTORS’
reviews the Company’s strategy, risks
include alternate Directorship, Directorship SHAREHOLDING
and opportunities, management reports,
of private limited companies, Section 8
operational and financial performance, As on 31 March, 2017, Mr. Gautam Thapar
companies and companies incorporated
annual budget, compliance, internal control held 1,188,218 Equity Shares and Mr. Sanjay
outside India.
systems, regulatory updates including Labroo held 495,802 Equity Shares in the
The Board meetings calendar of the Company those related to Companies Act, Listing Company.
is scheduled in advance and appropriate Regulations and Insider Trading Regulations The Company has not issued any convertible
notice is being served for convening Board besides other agenda items. instrument to any Non Executive Director.

TABLE 1 DETAILS OF THE BOARD

NAME OF THE DESIGNATION CATEGORY ATTENDANCE PARTICULARS NO. OF DIRECTORSHIPS AND COMMITTEE
DIRECTORS MEMBERSHIPS / CHAIRMANSHIPS IN OTHER
PUBLIC LIMITED COMPANIES*
NUMBER OF BOARD DIRECTORSHIPS COMMITTEE
MEETINGS UNDER TENURE
HELD ATTENDED LAST MEMBERSHIP CHAIRMANSHIP
AGM#
Mr. Gautam Thapar Chairman Non Executive, 4 4 No 8 2 1
Promoter
Mr. R. R. Vederah Vice Chairman Non-Executive 4 4 No 5 3 -
Mr. B. Hariharan Group Director Executive 4 4 Yes 9 5 2
(Finance)
Mr. Sanjay Labroo Director Independent 4 4 No 8 3 1
Mr. A. S. Dulat Director Independent 4 4 Yes 2 1 1
Mr. A. P. Singh Director Independent 4 4 Yes - - -
Mr. Ashish Guha Director Independent 4 4 No 1 1 -
Mr. B. Venugopal Director Non-Executive 4 1 No - - -
(LIC nominee)
Ms. Nandini Adya^ Director Independent 4 3 No 1 1 -
Mr. Sudhir Mathur@ Additional Director Independent 1 1 N.A - - -

* Committees included are Audit and Stakeholders Relationship Committee.

# 71st Annual General Meeting held on 29 September, 2016.
^ Resigned from directorship with effect from 19 May, 2017.
@ Appointed as an Additional Director(Independent) by the Board on 7 February, 2017

CORPORATE GOVERNANCE 15
ANNUAL REPORT 2016-17
 TABLE 2 DETAILS OF REMUNERATION OF THE DIRECTORS
AMOUNT IN `
NAME OF THE SALARY AND PROVIDENT COMMISSION SITTING FEES TOTAL
DIRECTORS PERQUISITES FUND AND PAYABLE
SUPERANNUATION
FUND
Mr. Gautam Thapar - - - 1,20,000 1,20,000
Mr. R. R. Vederah - - - 1,00,000 1,00.000
Mr. B. Hariharan - - - - -
Mr. Sanjay Labroo - - - 80,000 80,000
Mr. A. S. Dulat - - - 2,60,000 2,60,000
Mr. Ashish Guha - - - 2,20,000 2,20,000
Mr. B. Venugopal - - - 20,000 20,000
Mr. A. P. Singh - - - 2,20,000 2,20,000
Ms. Nandini Adya^ - - - 80,000 80,000
Mr. Sudhir Mathur@ - - - 20,000 20,000
^ Resigned from Directorship with effect from 19 May, 2017.
@ Appointed as an Additional Director (Independent) by the Board on 7 February, 2017.

TABLE 3 COMPOSITION OF BOARD-LEVEL COMMITTEES

NAME OF THE CATEGORY AUDIT STAkEHOLDERS CORPORATE NOMINATION RISk

DIRECTORS COMMITTEE RELATIONSHIP SOCIAL AND MANAGEMENT
COMMITTEE RESPONSIBILITY REMUNERATION COMMITTEE
COMMITTEE COMMITTEE
Mr.Gautam Thapar Non Executive - Member Chairman Member -
Mr. R. R. Vederah Non-Executive - - Member - Chairman
Mr. B. Hariharan Executive - Member - - Member
Mr. Sanjay Labroo Independent - - - - -
Mr. A. S. Dulat Independent Chairman Chairman - Chairman Member
Mr. Ashish Guha Independent Member - - Member Member
Mr. A. P. Singh Independent Member - - - -
Mr. B.Venugopal Non-Executive - - - - -
Ms. Nandini Adya^ Independent - - Member - -
Mr. Sudhir Mathur@ Independent - - - - -
^ Resigned from directorship with effect from 19 May, 2017.
@ Appointed as an Additional Director (Independent) by the Board on 7 February, 2017.

CODE OF CONDUCT COMMITTEES OF THE BOARD Committees and appointment of members

are taken by the Board of Directors.
The Company has a Code of Conduct for The composition of BILT’s Audit , Nomination
its Directors and Senior Management and Remuneration, Stakeholder’s AUDIT COMMITTEE
Personnel. The Code of Conduct is available Relationship , Corporate Social Responsibility During the year, the Audit Committee met
on the website of the Company (www.
and Risk Management Committees as on 31 seven times: 30 May, 2016, 31 August,
bilt.com). All Board members and Senior
March, 2017 is given in Table 3. 2016, 1 September, 2016, 5 October, 2016,
Management Personnel have affirmed
2 December, 2016, 5 December, 2016 and
compliance with the Code of Conduct for Apart from the details provided in Table 3, 7 February, 2017.The attendance record is
2016-2017. BILT also has other Board level committees to given in Table 4.
A declaration signed by Mr. Neehar manage the day to day decisions pertaining
Aggarwal, Chief Executive Officer, to this to operations / business of the Company. All
effect is annexed to this Report. decisions pertaining to the mandate of these

16 BALLARPUR INDUSTRIES LIMITED

ANNUAL REPORT 2016-17
 TABLE 4 ATTENDANCE RECORD OF THE AUDIT COMMITTEE

NAME OF MEMBERS DESIGNATION NO. OF MEETINGS ATTENDED

Mr. A. S. Dulat Chairman 7
Mr. A. P. Singh Member 7
Mr. Ashish Guha Member 6

All members of the Audit Committee have suggesting / implementing ways and means DISCLOSURES OF MATERIAL TRANSACTIONS
accounting and financial management for eliminating / minimizing risks to the
Considering the size and nature of
expertise. The Committee acts as a link business of the Company and periodic review
between the Management, Auditors and of the management control procedures / operations, there were no related party
the Board of Directors of the Company and tools used to mitigate such risks. transactions of a materially significant
has full access to financial information. The nature in terms of the Listing Regulations
STAkEHOLDERS RELATIONSHIP COMMITTEE that could have a potential conflict with the
Company Secretary of the Company acts
as the Secretary to the Committee. The interests of the Company at large. Other
The Board has constituted the Stakeholders
Group Director (Finance), Chief Executive related party transactions, which were in
Relationship Committee, with the
Officer, Head of Internal Audit, other composition as provided in Table 3. ordinary course of business and on arm’s
relevant officials of the Company and the length basis, are disclosed in the Notes to
representatives of the Statutory Auditors A meeting was held on 19 May, 2017 and the Financial Statements.
had attended the meeting(s) as invitees, was attended by all its members.
ACCOUNTING POLICIES
whenever required. During the financial year ended 31 March,
2017, 9 complaints were received from the The Company has adopted accounting
In addition to review of the financial results
Investors / Shareholders and all of them treatments, which are in conformity
of the Company, update on internal audits of
were redressed / resolved. with those prescribed by the applicable
various functions, review of internal control
Accounting Standards.
systems, applicability and compliance of CORPORATE SOCIAL RESPONSIBILITY
various laws, related party transactions, COMMITTEE INSIDER TRADING
reappointment and remuneration of
statutory auditors / branch auditors / cost The Board has constituted the Committee, In compliance with the SEBI regulations on
auditors, cost accounting systems and audit with the composition as provided in Table prevention of insider trading, the Company
reports features on the Audit Committee’s 3. The mandate of the Committee is in has a Code of conduct to regulate, monitor
Agenda. compliance with the requirements of the & report trading by Insiders (The Code). The
provisions of Section 135 of the Companies Code lays down guidelines, which provides
Further, the Committee also oversees Act, 2013. The Committee has formulated procedures to be followed and disclosures to
the vigil mechanism, as required by the and recommended to the Board of Directors, be made, while dealing in securities of the
provisions of the Companies Act, 2013. a Corporate Social Responsibility Policy, Company by persons governed by the code.
NOMINATION AND REMUNERATION guidance on the activities to be undertaken
by the Company, amount to be spent on INFORMATION FOR SHAREHOLDERS
COMMITTEE
CSR and shall monitor the same from time DISCLOSURE REGARDING APPOINTMENT
During the year ended 31 March, 2017, to time. The Corporate Social Responsibility AND / RE-APPOINTMENT
the Committee met on 7 February, 2017. Committee meeting has been held on 30
All Committee members had attended May, 2016 and was attended by Ms. Nandini Mr. Sudhir Mathur, aged 55 Years, was
the same. The Board has constituted Adya and Mr. R.R Vederah. appointed as an Additional Director
the Committee, with the composition as (Independent) by the Board of Directors in
provided in Table 3 with the mandate in The Board of Directors in its meeting held on
its meeting held on 7 February, 2017. His
compliance of the requirements of the 21 April, 2017 changed the constitution of
appointment is recommended for approval
provisions of Section 178 of the Companies the Committee . Consequently following are
of members at the forthcoming Annual
Act, 2013 and Regulation 19 of Listing the members of the Committee:
General Meeting of the Company. A brief
Regulations. The Committee has formulated Mr. Gautam Thapar- Chairman profile of Mr. Mathur is given hereunder:
criteria and policy for the identification /
appointment of Directors, key managerial Mr. R.R. Vederah Mr. Sudhir Mathur holds an MBA degree
personnel and senior management, their from Cornell University, USA. Mr. Mathur
Mr. Sudhir Mathur
remuneration and evaluation. An excerpt of has about 30 years of experience and was
the said policy is annexed herewith. MANAGEMENT associated with the Company till 2004 as
President & CFO. He has also worked for
RISk MANAGEMENT COMMITTEE MANAGEMENT DISCUSSION AND ANALYSIS
Idea Cellular, Aircel, GMR and Cairn at
REPORT
The Board had constituted the Committee to various senior level positions of increasing
understand and assess various kinds of risks This is given as a separate Chapter in the responsibility. Mr. Mathur does not have any
associated with the running of business and Annual Report. relationship with any Director inter-se.

CORPORATE GOVERNANCE 17
ANNUAL REPORT 2016-17
 TABLE 5 DETAILS OF OTHER DIRECTORSHIPS AND MEMBERSHIPS OF COMMITTEES OF BOARDS

DIRECTORSHIPS IN OTHER PUBLIC LIMITED COMPANIES OTHER COMMITTEE MEMBERSHIP / CHAIRMANSHIP

AUDIT STAkEHOLDERS RELATIONSHIP
COMMITTEE
Talbros Automotives Components Limited - -
Bilt Graphic Paper Products Limited - -
Solaris Chemtech Industries Limited Member -
Bilt Industrial Packaging Company Limited Member -
Premier Tissues (India) Limited Member -

As per the provisions of the Companies Act, as joint Chief Executive Officer, overseeing The Company sends its Annual Report
2013, Mr. R. R. Vederah retires by rotation the management and operations of the including Standalone and Consolidated
at the forthcoming Annual General Meeting. company until 1997. financials as well as other shareholder
Mr. Vederah does not have any relationship correspondence by email, to those
From 1997, Mr. Vederah served in various
with any Director inter-se. The details of his shareholders whose e-mail addresses
senior management positions within BILT,
other Directorships and memberships of are registered with the Company / their
holding the last position as Managing
committees of Board in other public limited depository participants. However, in case
Director and Executive Vice Chairman until
companies are given in Table 5. Shareholders desire to receive a physical
June 2014 and was responsible for overall
management operations, implementation copy of the Annual Report, the Company will
A brief profile of Mr. Vederah is given
of business strategy, new technology and be happy to provide the same upon request.
hereunder:
quality initiatives aimed at achieving market The financial results of the Company are
Mr. R. R. Vederah has more than 43 years leadership position in the South Asian published in The Financial Express (all
of experience in the paper and other Region, acquisitions & integration of SFI
editions) and Loksatta (Nagpur: Marathi
industries, and had been part of the Senior and major expansions at Units Bhigwan,
edition) and are simultaneously uploaded
Management of several paper companies, Ballarpur and SFI.
on the Company’s website (www.bilt.com).
including more than 33 years with BILT.
Mr. Vederah was named as Asian CEO for the The Company also sends the results and
Mr. Vederah is the Non Executive Vice
Year 2011 by RISI, the definitive source for announcements to the Luxembourg Stock
Chairman of BILT and is also Director on the
information on the global forest products Exchange for the benefit of the GDS holders.
boards of various subsidiaries of Avantha and
industry and was consecutively ranked in The weblink for matters detailed in this
BILT. Further, Mr. Vederah is the Chairman of
Global Pulp and Paper Industry Power 50 report is http://bilt.com/investor-relations/.
Thapar University, Patiala (India).
list of RISI from 2009 to 2012. Mr. Vederah
is a Bachelor of Technology (Chemical) from GENERAL MEETINGS
Mr. Vederah is an Independent Director of
Talbros Automotive Components Limited the Indian Institute of Technology, New Table 6 gives the details of General Meetings,
(India), a company listed at BSE Limited and Delhi (India) and a Master of Science from
held in the last three years.
the National Stock Exchange of India Limited. the University of Aston, Birmingham (United
Kingdom). The following Special Resolutions were taken
Mr. Vederah began his career at M/s. Larsen up in the previous AGMs and approved by
COMMUNICATION TO SHAREHOLDERS
& Toubro Ltd in 1971, where his last position Shareholders with requisite majority.
with the company was Senior Manager. In Full and complete disclosure of information
1981, Mr. Vederah joined BILT, and served regarding the Company’s financial situation 2014: Offer, issue and allot, in one or more
in various positions until his departure in and performance is an important part of tranches, upto 2.50 crore cumulative non-
1993 as a Vice President, Operations. He the Company’s Corporate Governance convertible compulsorily redeemable
joined Sinar Mas Pulp & Paper (India) Ltd. as ethics. The Company has demonstrated this preference shares of the face value of
an Executive Director, heading the strategy commitment by sending its Shareholders a ` 100.00 each for cash at par or at a premium
function until 1996. In 1996, Mr. Vederah full version of its Annual Report, despite a aggregating upto a nominal value of ` 250.00
joined Shree Rayal-Seema Paper Mills Ltd. regulatory exemption. crores on a private placement basis.

TABLE 6 DETAILS OF GENERAL MEETINGS HELD DURING THE LAST THREE YEARS

YEAR CATEGORY PLACE DATE

2014 AGM P.O. Ballarpur Paper Mills – 442901, Distt. Chandrapur, Maharashtra 19 December, 2014
2015 AGM P.O. Ballarpur Paper Mills – 442901, Distt. Chandrapur, Maharashtra 30 September, 2015
2016 AGM P.O. Ballarpur Paper Mills – 442901, Distt. Chandrapur, Maharashtra 29 September, 2016
AGM — Annual General Meeting, Time of Meetings — 12.00 Noon

18 BALLARPUR INDUSTRIES LIMITED

ANNUAL REPORT 2016-17
 TABLE 7 UNCLAIMED DIVIDENDS

DATE OF DECLARATION OF DIVIDEND DIVIDEND FOR THE FINANCIAL YEAR TENTATIVE SCHEDULE FOR TRANSFER TO
IEPF
1 December, 2010 2009–10 December 2017
16 December, 2011 2010–11 January 2019
18 December, 2012 2011–12 January 2020
12 December, 2013 2012–13 January 2021
19 December, 2014 2013-14 January 2022
30 September, 2015 2014-15 October 2022

Offer, issue and allot secured and/or GOVERNANCE OF SUBSIDIARIES quarter and audited annual results which are
unsecured redeemable Non-convertible considered and approved within 60 days.
Debentures (NCDs), in one or more series/ The subsidiaries of the Company are
managed by experienced Board of Directors. BOOk CLOSURE
tranches upto an aggregate amount of
` 250.00 crores, on a private placement basis. The minutes of the subsidiaries are reviewed
The dates of book closure are from 20
by the Board of Directors of the Company on
September, 2017 to 26 September, 2017,
Mortgage and /or charge, in addition to a regular basis.
both days inclusive.
the mortgages /charges created / to be
created by the Company, amounting in CEO/CFO CERTIFICATION UNCLAIMED DIVIDENDS
aggregate to a sum not exceeding the paid-
The Chief Executive Officer and Chief Dividends pertaining to the financial years
up Share Capital of the Company and its free
Financial Officer have certified to the Board 2009–10 onwards, as detailed in Table 7,
reserves by ` 1,600 crores on all or any of
with respect to accuracy of the financial which remain unclaimed and unpaid for a
the movable and/or immovable properties
statements, adequacy of internal controls period of seven years, will be transferred to
of the Company. The said limit remained
and other matters, as required by Regulation the Investor Education and Protection Fund
unchanged, as approved by the Members at
17(8) of Listing Regulations for the financial (IEPF), as required statutorily. To enable the
the Extraordinary General Meeting held on 7 members to claim their dividend before its
year ended 31 March, 2017.
November, 2001 by an ordinary resolution. transfer to the above Fund, the tentative
AUDITORS’ CERTIFICATE ON CORPORATE schedule for transfer is given in Table 7. The
2015: Nil
GOVERNANCE details are also available on the website of
2016: Nil the Company i.e. www.bilt.com under the
The Company has obtained a certificate Investor relations section.
POSTAL BALLOT from the Statutory Auditors of the Company
regarding compliance of conditions of UNCLAIMED BUY BACk CONSIDERATION
No resolution through postal ballot was Corporate Governance for the FY2016-
The shareholders, who have not received
passed during the year under review. 17, as prescribed by Schedule V of Listing
their buy back consideration, are requested
Regulations, which is attached herewith. to notify the Company of non-receipt and
CAPITAL MARkET COMPLIANCE
claim the same.
GENERAL SHAREHOLDERS’
The Company has complied with all
INFORMATION LISTING DETAILS
requirements of the Listing Regulations as
well as other applicable regulations and ANNUAL GENERAL MEETING At present, the Equity Shares of the Company
guidelines prescribed by SEBI. There were are listed on BSE Limited (BSE) and National
no penalties or strictures imposed on the Date 26 September, 2017 Stock Exchange of India Limited (NSE) in
Company by any statutory authorities for India. The annual listing fee for the financial
Time 11.00 a.m.
non compliance on any matter related to year 2017-18 has been paid to both the Stock
capital markets, during the last three years. Venue P.O. Ballarpur Paper Mills – 442901, Exchanges. The Company’s stock codes at
Distt. Chandrapur, Maharashtra various exchanges are given in Table 8.
UNCLAIMED SHARES
FINANCIAL CALENDAR 2017-18 Table 9 gives the details of monthly price and
The Company has completed the process of volumes traded of BILT’s shares at the BSE
intimation to shareholders, as per Regulation Financial year April–March. and the NSE, while Charts A and B compare
39(4) of Listing Regulations for unclaimed the price movements of BILT’s share with
shares for transfer in the Unclaimed Financial results normally within 45 days of respect to the BSE SENSEX and the NSE
Suspense Account. end of the respective quarter, except last NIFTY, respectively.

CORPORATE GOVERNANCE 19
ANNUAL REPORT 2016-17
 TABLE 8 BILT’S STOCk CODES

ISIN INE294A01037
BSE 500102
NSE BALLARPUR
Luxembourg Stock Exchange US0585883020
Bloomberg BILT:IN
Reuters Code BILT.BO for BSE, BILT.NS for NSE

TABLE 9 MONTHLY PRICE AND VOLUMES OF BILT’S SHARES FOR 2016-17 AT BSE AND NSE, INCLUDING INDICES

MONTH BSE LIMITED NATIONAL STOCk ExCHANGE OF INDIA LIMITED

HIGH (RS.) LOW (RS.) VOLUME SENSEx HIGH (RS.) LOW (RS.) VOLUME NIFTY
(CLOSE) (CLOSE)
Apr-16 18.19 13.60 11717385 25606.62 17.90 13.50 29520110 7849.80
May-16 18.30 16.05 7166849 26667.96 18.05 16.05 18498670 8160.10
June-16 17.60 15.00 5214912 26999.72 17.50 15.00 15292865 8287.75
July-16 17.40 14.40 7078078 28051.86 17.45 14.50 24062852 8638.50
Aug-16 15.10 13.45 3689795 28452.17 15.15 13.50 11646581 8786.20
Sep-16 15.15 12.87 5833215 27865.96 14.10 13.00 15530635 8611.15
Oct-16 18.10 13.72 18620040 27930.21 18.20 13.50 69036123 8625.70
Nov-16 18.55 14.18 9864091 26652.81 18.60 14.10 37072527 8224.50
Dec-16 17.35 14.45 6748820 26626.46 17.35 14.40 21750324 8185.80
Jan-17 17.40 15.40 5137502 27655.96 16.45 15.30 18228639 8561.30
Feb-17 17.30 15.10 6190798 28743.32 17.25 15.00 26651124 8879.60
Mar-17 21.05 15.85 23106137 29620.50 20.85 15.90 77398685 9173.75

Chart A: BILT SHARE WITH RESPECT TO BSE SENSEX

Note: Both Bilt’s share price at BSE and the SENSEX have been indexed to 100 as on 1 April, 2016.

20 BALLARPUR INDUSTRIES LIMITED

ANNUAL REPORT 2016-17
 Chart B: BILT SHARE WITH RESPECT TO NSE NIFTY

Note: Both Bilt’s share price at NSE and NIFTY have been indexed to 100 as on 1 April, 2016.

NON CONVERTIBLE DEBENTURES (NCDs) for holding in the depository systems of UNIT kAMALAPURAM
National Securities Depository Limited and
The Company had raised ` 150 Crore by Mangapet Mandal, Distt. Warangal –
Central Depository Services (India) Limited.
private placement of Secured redeemable 506172, Telangana
As on 31 March, 2017, 98.49 percent of the
non-convertible debentures (NCDs) of face total Equity Shares of the Company were ADDRESS FOR CORRESPONDENCE
value of ` 10 lac each in 2014. These NCDs held in dematerialised form, as compared to
are in dematerialised form and listed on BSE 98.48 percent last year. For share transfer, dematerialisation of
Limited. As on date of this report, the same shares, payment of dividend and any other
OUTSTANDING GLOBAL DEPOSITARY related queries of Analysts, FIIs, Institutions,
are outstanding.
SHARES (GDS) Mutual Funds, Banks and Fixed Deposits is:
REGISTRAR AND TRANSFER AGENT
As on 31 March, 2017, there were 41 Corporate Secretarial Department,
The Registrar and Transfer Agent for the outstanding GDS which represent 123 Ballarpur Industries Limited, First India
securities , both in physical and electronic underlying equity shares. Place, Tower-C, Block-A, Sushant Lok-1,
form of the Company is: Mehrauli-Gurgaon Road, Gurugram – 122002.
DISTRIBUTION OF SHAREHOLDING
M/s. RCMC Share Registry (P) Limited Tel +91 124 2804242 / 43
Tables 10 and 11 give the distribution of Tel +91 124 4099208
B-25/1, First Floor, Okhla Industrial Area,
shareholding of the equity shares of the Fax +91 124 2804261
Phase II, New Delhi-110020
Company by size and ownership as on 31 Email sectdiv@bilt.com
Phone 011 26387320 / 21
March, 2017.
Fax 011 26387322 For and on behalf of the Board of Directors
Email investor.services@rcmcdelhi.com REGISTERED OFFICE
GAUTAM THAPAR
SHARE TRANSFER SYSTEM Ballarpur Industries Limited Chairman
P.O. Ballarpur Paper Mills-442901 DIN 00012289
The Committee of Directors for Shares
Distt. Chandrapur, Maharashtra
approves the transfer of shares and other B. HARIHARAN
Tel +91 7172 240262 / 200
related issues regularly on a weekly basis. Group Director (Finance)
Extn. 234 / 339
The share transfer is processed within DIN 00012432
Fax +91 7172 240548
15 days, from the receipt of complete
Email sectdiv@bilt.com Date 23 May, 2017
documents.
Place New Delhi
PLANT LOCATIONS
DEMATERIALISATION OF SHARES
UNIT SHREE GOPAL  
The Equity Shares of the Company are
compulsorily traded on the Stock Exchanges, P.O. Yamunanagar, Distt. Yamunanagar,
in dematerialised form and are available Haryana – 135001

CORPORATE GOVERNANCE 21
ANNUAL REPORT 2016-17
 TABLE 10 SHAREHOLDING PATTERN BY SIZE AS ON 31 MARCH, 2017.

NUMBER OF EQUITY SHARES HELD NUMBER OF SHARE PERCENT OF SHARE NUMBER OF SHARES# PERCENT OF
HOLDERS# HOLDERS SHAREHOLDING
1–1000 63,866 85.70 16,370,126 2.50
1001–5000 7,970 10.70 19,196,664 2.92
5001–10,000 1,302 1.75 9,998,029 1.53
10,001 and above 1,377 1.85 609,959,020 93.05
Total 74,515 100.00 655,523,839 100.00
#55442 shareholders hold 645,604,918 equity shares in demat form.

TABLE 11 SHAREHOLDING PATTERN BY OWNERSHIP AS ON 31 MARCH, 2017

CATEGORY NO. OF SHARES PERCENT OF SHARE NO. OF SHARES HELD PERCENT OF

HOLDERS HOLDERS SHAREHOLDING
Promoters and Promoter Group 6 0.01 324010667 49.43
FIIs and FFIs 16 0.02 359517 0.05
Mutual Funds 20 0.03 6003664 0.92
Central Govt/State Govt. 2 0.00 1521 0.00
Foreign Portfolio Investor 22 0.03 80672727 12.31
Financial Institutions / Banks 40 0.05 584675 0.09
Insurance Companies 5 0.01 57971178 8.84
NBFCs registered with RBI 7 0.01 328735 0.05
NRIs 1166 1.56 3280814 0.50
Bodies Corporate 790 1.06 54118039 8.26
Individuals and Others 72441 97.22 128192302 19.55
Total 74515 100.00 655523839 100.00

DECLARATION OF COMPLIANCE WITH 2017, as per the relevant provisions ASHWIN MANkESHWAR
CODE OF CONDUCT of Securities and Exchange Board of Partner
India (Listing Obligations and Disclosure Membership No. 046219
Declaration for compliance of code of Requirements) Regulations, 2015 (‘Listing
conduct required pursuant to Schedule V of For and on behalf of
Regulations’) .
Listing Regulations is given below:
The compliance of conditions of Corporate k. k. MANkESHWAR & CO.
THE MEMBERS OF BALLARPUR INDUSTRIES Governance is the responsibility of the Chartered Accountants
LIMITED Company’s Management. Our examination FRN: 106009W

This is to certify that all Board members and was limited to a review of the procedures Date 23 May, 2017
senior management personnel have affirmed and implementations thereof, adopted by Place New Delhi
to the compliance with the ‘Code of Conduct the Company for ensuring compliance with
for Directors and Senior Management'. the conditions of Corporate Governance
as stipulated in the said Regulations. It is
For Ballarpur Industries Limited neither an audit nor an expression of opinion
on the financial statements of the Company.
NEEHAR AGGARWAL
Chief Executive Officer In our opinion and to the best of our
information and according to the explanations
Date 23 May, 2017 given to us and the representations made
Place New Delhi by the Directors and the Management, we
CERTIFICATE certify that the Company has complied with
the conditions of Corporate Governance as
THE MEMBERS OF BALLARPUR INDUSTRIES stipulated in the Listing Regulations.
LIMITED
We further state that such compliance
We have examined the compliance of is neither an assurance as to the future
conditions of Corporate Governance by viability of the Company nor the efficiency or
M/S Ballarpur Industries Limited, (the effectiveness with which the Management
“Company”), for the year ended 31 March, has conducted the affairs of the Company.

22 BALLARPUR INDUSTRIES LIMITED

ANNUAL REPORT 2016-17
 ANNEXURE TO CORPORATE GOVERNANCE REPORT
ExCERPT OF NOMINATION & in force. Review of remuneration of workers as per industry practice, as
REMUNERATION POLICY executive directors shall be made by applicable. Where there is no union,
NRC and shall be recommended to workmen wages are as per the
The Policy has been formulated in compliance the Board for approval, if required. industry practice and applicable law.
with Section 178 of the Companies Act, 2013 Further, the Board shall apportion All remuneration components would
(read with applicable rules thereto) and the commission amongst the Non be in accordance with applicable
Regulation 19 of Securities and Exchange Executive Directors out of available statutory compliances.
Board of India (Listing Obligations and profits in compliance with statutory
Disclosure Requirements) Regulations, 2015, provisions, on the basis of their III. LOANS AND ADVANCES TO EMPLOYEES
(Listing Regulations). The Policy provides involvement and role played for the
for appointment / removal / remuneration Any loan and advance is governed
Company’s initiatives and strategic
of Directors, Key Managerial Personnel & by the applicable HR policies, Rules
direction. An Independent Director
Senior Management and Board diversity. of Procedure for Management and
shall not be entitled to any stock
applicable provisions of the Companies
option of the Company.
I. APPOINTMENT OF DIRECTOR, KMP Act, 2013, and Rules made thereunder.
AND SENIOR MANAGEMENT B. CEO and Executive Director
IV. DEVIATIONS FROM THIS POLICY
Nomination and Remuneration The remuneration of the CEO /
Committee (NRC) plays an important Deviations from the Policy, in
Whole-time director / Managing
role in the appointment of Directors, extraordinary circumstances, are
Director (including revisions) are
KMPs and Senior Management, review possible in the interests of the Company
in line with the HR Policy of the
of evaluation processes and senior if there are specific reasons to do so in
Company and recommended by
management’s compensation. an individual case.
the NRC and approved by the
NRC shall identify and ascertain the Board in accordance with the V. ExTERNAL ASSISTANCE
qualification, expertise and experience applicable statutory provisions of
the Companies Act, 2013, and the NRC may, at its sole discretion, seek
of the persons being considered for
Rules made thereunder for the time advice of external experts / consultants to
appointment as a Director, KMP or
being in force. The remuneration is discharge its duties and responsibilities.
at Senior Management level and
recommend the appointment to the on the basis of the the Company’s
Board. overall performance, individual’s
contribution towards Company’s
At the time of appointment of an performance and trends in the
Independent Director, the Committee industry in general and comprises
shall ensure that the appointee shall a fixed salary, allowances /
meet with the requirements of the reimbursements / perquisites,
Companies Act, 2013, Regulation 25 performance incentive.
of Listing Regulations and conditions
stipulated in the Policy from time to C. Key Managerial Personnel, Senior
time, for determining independence of a Management and other executives
director. Further, the continuity of such
Remuneration comprises fixed
Independent Director shall be on the
salary, allowances / reimbursements
basis of a yearly review process.
/ perquisites, performance incentive
II. REMUNERATION OF DIRECTORS, KMP as per HR policy of the Company
AND OTHER EMPLOYEES and is also subject to NRC / Board
approval wherever required
A. Remuneration to Non-Executive statutorily. The remuneration is
Directors (Including Independent related to the desired skill set,
Directors) experience, expertise and long term
relationships.
The remuneration / sitting fee /
commission payable to directors D. Workmen
shall be in accordance with
the statutory provisions of the Workmen will be paid wages in
Companies Act, 2013, and the Rules accordance with the settlement
made thereunder for the time being with the recognized union of the

CORPORATE GOVERNANCE 23
ANNUAL REPORT 2016-17
BOARD’S
REPORT

Your Directors hereby FINANCIAL PERFORMANCE

The Companies (Indian Accounting Standards) Rules, 2015 were notified on 16 February,
present the Seventy 2015. In view of the said rules, the Company has prepared the Financial Statements (both
stand-alone and consolidated) for the year ended 31 March, 2017 as per Indian Accounting
Second Annual Standards, as amended.

The financial performance of your Company for the financial year ended 31 March, 2017 is
Report together with as under:

the Audited Financial ` IN CRORE

Particulars STANDALONE CONSOLIDATED

Statements for the
2016-17 2015-16 2016-17 2015-16
financial year ended
Revenue from Operations (Net of Excise 211.83 554 2008.22 4050.59
31 March, 2017. duty)

EBIDTA (38.60) 129.93 (89.15) 767.80

Less: Finance Cost 153.19 51.93 900.84 459.17

Less: Depreciation 52.69 58.10 273.99 264.80

Profit/(Loss) before Exceptional Items and (244.47) 19.90 (1263.98) 43.86

Taxes

Exceptional Items 251.49 - 306.30 (0.31)

Profit / (Loss) before Tax (495.96) 19.90 (1570.28) 44.17

Less: Tax (25.42) (1.75) (135.41) (6.82)

Profit/(Loss) After Tax (470.54) 21.65 (1434.87) 50.99

Profit/ (loss) from discontinued operation - - (254.08) (329.31)

before tax

Tax expense on discontinued operation - - 172.87 0.94

Net profit/ (loss) from discontinued - - (426.95) (330.26)

operations after tax

Net profit/ (loss) after tax (470.54) 21.65 (1861.82) (279.27)

24 BALLARPUR INDUSTRIES LIMITED

ANNUAL REPORT 2016-17
OPERATIONS Further, Mr. Bimal Khandelwal was a note on the performance of each of
appointed as Chief Financial Officer of the the subsidiaries. The audited accounts of
A detailed review of the operations and
Company with effect from 21 April, 2017. Company’s subsidiaries are available on
performance of the Company and its
the website of the Company and are not
subsidiaries is provided in the Management Ms. Nandini Adya resigned from the enclosed to this Annual Report and the same
Discussion and Analysis Report, which is directorship of Company w.e.f 19 May, 2017. may be provided to any member on request.
given as a separate chapter in the Annual The Board places on record its appreciation
Report. of her contribution during her tenure as The Company has no joint venture or
DIVIDEND Director. associate company.

In view of losses during the year, your DECLARATION BY INDEPENDENT DIRECTORS CONSOLIDATION OF ACCOUNTS
Directors have not recommended any
dividend on the equity share capital of the All the Independent Directors have given a Consolidated Financial Statement of the
Company for the financial year ended 31 declaration confirming that they meet the Company and its aforesaid 9 subsidiaries are
March, 2017. criteria of independence, as provided in annexed to this Report.
Section 149(6) of the Act and Regulation
FIxED DEPOSITS 16(1)(b) of Securities Exchange Board of The performance and financial position
India (Listing Obligations and Disclosure of each of the subsidiaries are detailed in
No amount of principal or interest on
Requirements) Regulations 2015 {Listing ‘Statement containing salient features of the
erstwhile fixed deposits was outstanding as
Regulations}. financial statement of subsidiaries in Form
on 31 March, 2017. Further, the Company
AOC I, pursuant to Section 129 of the Act'.
has not invited any fresh deposits.
MEETINGS OF THE BOARD
BOARD OF DIRECTORS AND kEY MATERIAL CHANGES AND COMMITMENT
The details of meetings of the Board of AFFECTING FINANCIAL POSITION OF THE
MANAGERIAL PERSONNEL
Directors of the Company are contained in COMPANY
To strengthen the leadership at the Board the Corporate Governance Report.
level with independent professionals, in There are no material changes and
accordance with the provisions of the PROMOTER GROUP commitments affecting the financial
Companies Act, 2013 (“the Act”) read with position of the Company which has occurred
the Articles of Association of the Company, The Company is a part of the Avantha
between the end of the financial year of the
Mr. Sudhir Mathur was appointed as an Group, the business conglomerate led by the
Company i.e. 31 March, 2017, and the date
Additional Director (Independent) by the Chairman, Mr. Gautam Thapar. The Avantha
of the Board’s report i.e. 23 May, 2017.
Board of Directors on 7 February, 2017. His Group has global presence. As required
appointment as an Independent Director is by the Listing Regulations, the Company DIRECTORS’ RESPONSIBILITY STATEMENT
recommended for approval by the Members periodically discloses its Promoter, Promoter
of the Company at the forthcoming Annual Group and persons acting in concert in the In accordance with Section 134(5) of
General Meeting (AGM) of the Company for shareholding pattern and other filings with the Companies Act, 2013, your Board of
a term of 5 years. His profile is provided in the Stock Exchanges. Directors confirm that:
the Corporate Governance Report.
SUBSIDIARY COMPANIES • In the preparation of the annual
As per the provisions of the Act, accounts, the applicable accounting
Mr. R.R. Vederah retires by rotation at the The Company has three Indian subsidiaries standards have been followed and there
forthcoming AGM and being eligible, offers viz. BILT Graphic Paper Products Limited is no material departure;
himself for re-appointment. His profile (BGPPL), Avantha Agritech Limited {(AAL),
is provided in the Corporate Governance (formerly BILT Tree Tech Limited )} and • They had selected such accounting
Report. The Directors recommend his re- Premier Tissues (India) Limited (PTIL) and policies and applied them consistently
appointment as Non Executive Director of six foreign subsidiaries viz. four based in The and made judgments and estimates
the Company. Netherlands namely Ballarpur International that are reasonable and prudent so as
Holdings B.V. (BIH), Bilt Paper B.V. (BPBV), to give a true and fair view of the state
The Nomination and Remuneration
Ballarpur Paper Holdings B.V. (BPH), of affairs of the Company at the end of
Committee has formulated criteria and
Ballarpur Speciality Paper Holdings B.V. the financial year and of the loss of the
policy for the identification / appointment
(BSPH), Sabah Forest Industries Sdn. Bhd. Company for the financial year;
of Directors, Key Managerial Personnel &
Senior Management, their remuneration (SFI) based in Malaysia and BILT General
Trading (FZE), based in UAE. AAL and PTIL are • They had taken proper and sufficient care
and evaluation. The same is also briefed in
direct subsidiaries and BGPPL is a step down for maintenance of adequate accounting
the Corporate Governance Report.
subsidiary of the Company. records as provided in the Companies
The Board has carried out annual evaluation Act, 2013, for safeguarding the assets
as per criteria laid down by the Nomination Management Discussion and Analysis of the Company and for preventing and
and Remuneration Committee. Report, as annexed herewith comprises detecting frauds and other irregularities;

BOARD’S REPORT 25
ANNUAL REPORT 2016-17
• The annual accounts of the Company to subsidiaries and emphasis of matter or transactions with related parties which
have been prepared on a “going regarding invocation of Strategic Debt require disclosure in Form AOC–2.
concern” basis; Restructuring by the Lenders due to non
fulfillment of debt obligations given by Details of loans / guarantees / investments
• They had laid down internal financial Statutory Auditors in their report are self by the Company under Section 186 of the
controls to be followed by the Company explanatory and also suitably explained Companies Act, 2013 are provided in the
and that such controls are adequate and in Note Nos. 44 and 45 respectively of financial statements of the Company.
were operating effectively; and the Notes to the Financial Statements of
ADEQUACY OF INTERNAL FINANCIAL
the Company and does not require any
• They had devised proper systems to CONTROLS
additional comment(s)."
ensure compliance with the provisions
of all applicable laws and that such The Company has designed and
The Board had appointed M/s PDS & Co.,
systems were adequate and operating implemented a process driven framework
Company Secretaries, to conduct Secretarial
effectively. for internal financial controls within the
Audit of the Company for the financial year
meaning of explanation to Section 134(5)
2016–2017. The Secretarial Audit Report
AUDITORS & AUDITORS’ REPORTS (e) of the Companies Act, 2013. For the year
for the said financial year is annexed to this
ended 31 March, 2017, the Board is of the
The tenure of M/s. K. K. Mankeshwar & Co., report.
opinion that the Company has sound internal
Chartered Accountants, Statutory Auditors
The Board of Directors, on recommendation financial controls commensurate with the
of the Company, expires at the conclusion
of Audit Committee have appointed nature and size of its business operations;
of the forthcoming Annual General Meeting
M/s. Bahadur Murao & Co., Cost wherein controls are in place, operating
(AGM) of the Company. In view of the
Accountants, (Registration No. 000008), effectively and no material weaknesses
requirement of mandatory rotation, the
as Cost Auditors of the Company, to carry exist. The Company has a process in place to
Board of Directors on the recommendation
out the cost audit of paper manufactured continuously monitor the existing controls
of the Audit Committee propose to appoint
in relation to the financial year ending and identify gaps, if any, and implement new
M/s Sharp & Tannan, Chartered Accountants
31 March, 2018. The Company has received and / or improved controls, wherever the
(FRN 003792S), as Statutory Auditors for a
period of five years. M/s Sharp & Tannan, their written consent to act as Cost Auditors effect of such gaps would have a material
Chartered Accountants, if appointed at of the Company and that the appointment is effect on the Company’s operation.
forthcoming AGM, shall hold office till the in accordance with the applicable provisions
of the Act and rules framed thereunder. The RISk MANAGEMENT
conclusion of 77th AGM of the Company
and their re-appointment shall be subject remuneration of the Cost Auditors has been BILT has adopted the group risk management
to ratification by the Members at every approved by the Board of Directors on the policy. Accordingly, all operational processes
AGM to be held during the period of their recommendation of the Audit Committee
are duly covered to assess the risk level.
appointment. The Board places on record and the requisite resolution for ratification
Business risks are assessed by operational
its appreciation for contributions of M/s K.K. of remuneration of the Cost Auditors by the
management and steps are taken for
Mankeshwar & Co. as Statutory Auditors of members has been set out in the Notice of
minimization of the same.
the Company. the Seventy Second Annual General Meeting
of your Company. STATUTORY COMMITTEES
M/s Sharp & Tannan, Chartered Accountants,
Chennai (FRN 003792S) are into Assurance, CORPORATE GOVERNANCE Details of various Committees of the Board
Tax and Advisory services. They have pan viz. Audit, Nomination & Remuneration,
The Statutory Auditors, M/s. K. K.
India presence and have an experienced Stakeholders Relationship, Corporate
Mankeshwar & Co., have certified
team. They also have several other Social Responsibility and Risk Management
compliance of the Company with the
prominent Indian companies as their clients constituted in compliance with the
provisions of Corporate Governance, in
in a variety of sectors like Construction, provisions of the Companies Act, 2013
terms of Listing Regulations. Pursuant to the
Infrastructure, Manufacturing, Power and Listing Regulations, viz. constitution,
requirement of the Listing Regulations, the
transmission and distribution, Oil & Gas, purpose, attendance etc. has been provided
report on Corporate Governance together
Automotive components, Insurance etc. in the Corporate Governance Report, as
with the said Compliance certificate is
annexed with this Report.
The Company has received requisite attached and forms part of this Report.
certificate to the effect that their The Board has accepted recommendations
RELATED PARTY TRANSACTIONS AND
appointment, if made at the forthcoming of the Committees, wherever made.
LOANS, GUARANTEES OR INVESTMENTS BY
Annual General Meeting, would be in
THE COMPANY STATUTORY POLICIES
accordance with Section 141 of the Act
and that they hold a valid certificate issued During the period under review, all In compliance of the various provisions
by Peer review board of The Institute of transactions with related parties, referred of the Companies Act, 2013 and Listing
Chartered Accountants of India. to in sub-section (1) of Section 188 and Regulations, the Company has made the
Board’s explanation to Auditor’s qualification Regulation 23 of Listing Regulations were in following policies which are available on the
& emphasis of matter the ordinary course of business and at arm’s website of the Company:
length, duly reviewed/approved by the Audit
“The qualified opinion on the liability for Committee of the Company. Further, there • Policy on materiality of and dealing with
the put option on the Company pertaining were no material contracts, arrangements related party transactions

26 BALLARPUR INDUSTRIES LIMITED

ANNUAL REPORT 2016-17
• Policy for determining material CONSERVATION OF ENERGY, RESEARCH & undertaken by the Company as per CSR
subsidiaries of the Company DEVELOPMENT, TECHNOLOGY ABSORPTION Policy of the Company in terms of said
AND FOREIGN ExCHANGE EARNINGS AND section and the Companies (Corporate
• Corporate Social Responsibility Policy
OUTGO Social Responsibility Policy) Rules, 2014,
• Policy for preservation of documents as amended is annexed with this Report as
As required by the Companies Act, 2013, Annexure 4.
• Policy relating to remuneration of read with Companies (Accounts) Rules,
Directors/Key Managerial Personnel 2014, particulars pertaining to conservation ACkNOWLEDGEMENT
of energy, technology absorption and foreign
• Policy on determination of materiality of The Directors wish to convey their gratitude
exchange earnings and outgo are given in
events and appreciation to all of the Company’s
the prescribed format, as annexed with this
employees for their professionalism,
• Policy for fair disclosure of Unpublished Report as Annexure 1.
creativity, integrity and efforts in effective
Price sensitive information
PARTICULARS OF EMPLOYEES utilisation of available resources for the
• Whistle Blower Policy, covering all Company’s performance.
employees and Directors, for the The information required under Section
197(12) of the Companies Act, 2013 read The Directors would also like to thank the
vigil mechanism inter alia providing a
with Rule 5 of Companies (Appointment employee unions, shareholders, customers,
direct access to a whistle blower to the
and Remuneration of Managerial Personnel) dealers, suppliers, bankers, government
Chairman of the Audit Committee.
Rules, 2014, as amended, is annexed with and all other business associates for
• Policy on “Prevention of Sexual their continued support extended to the
this Report as Annexure 2.
Harassment of Women at Workplace” in Company.
line with the requirement of “The Sexual ExTRACT OF THE ANNUAL RETURN
Harassment of Women at Workplace
(Prohibition, Prevention and Redressal) An extract of the Annual Return as of 31 For and on behalf of the Board of Directors
Act, 2013”. There was no incident during March, 2017, pursuant to sub-section (3) of
the year. Section 92 of the Companies Act, 2013 and
GAUTAM THAPAR
forming part of the report is annexed with
Chairman
SIGNIFICANT/ MATERIAL ORDERS PASSED this Report as Annexure 3. DIN 00012289
BY REGULATORS
CORPORATE SOCIAL RESPONSIBILITY (CSR) B. HARIHARAN
There are no significant/ material orders
Group Director (Finance)
passed by any Regulator/Courts/Tribunal In terms of Section 135 and Schedule VII
DIN 00012432
impacting the going concern status of the of the Companies Act, 2013, the Board of
Company or impacting its operations in Directors of your Company have constituted Date 23 May, 2017
future. a CSR Committee. A report on CSR activities Place New Delhi

BOARD’S REPORT 27
ANNUAL REPORT 2016-17
ANNEXURE TO BOARD'S REPORT
ANNExURE 1

Pursuant to clause (m) of sub-section 3 of • Provided auto-off timer circuit 1. Reduction in steam
section 134 of the Companies Act, 2013 and switch for 15 minutes in 18 nos. of consumption to the tune of 2.5
Rule 8(3) of the Companies (Accounts) Rules, soda recovery evaporators gauge TPH by :-
2014 glass lighting. It has resulted in
reduction in power consumption to • controlling venting & distribution
Unit: Shree Gopal the tune of 1.5 kWh/hr. losses,
1. CONSERVATION OF ENERGY: • improving insulation of steam
2. Monetary benefits due to
A) ENERGY CONSERVATION MEASURES energy conservation drive in the lines,
TAKEN: mills:
• replacing faulty steam traps and
Unit Shree Gopal continued its efforts • Unit Shree Gopal Sold 14,906
• arresting steam leakages.
to improve energy usage efficiency and REC (Renewable Energy Credit) in
increase contributions from renewable FY2016-17 out of 34,830 REC earned Corresponding reduction in coal
sources of energy. Innovative ways In FY2015-16, resulted a monetary consumption to the tune of 4,300
and new technologies were explored gain to the tune of Rs 220 Lac. TPA
to reduce energy consumption. Some
of the measures adopted across the 3. Enhanced safety & Plant housekeeping 2. Improvement in Overall
company for energy conservation were:- by following actions: efficiency of Coal fired boilers
No. 1, 2 & 3 to the tune of 2% by
Unit: Shree Gopal • Eliminated 8 Nos of mill wide
installing PLC based automation
identified Power Distribution Boards
1. Reduced power consumption by 60 system for boiler operations and
(i.e. DB No.3 of vacuum pumps
kWh/hr as per below details: hence an estimated reduction in
PM-4, DB of pump house, Stock
coal consumption about 4,833
• Replaced 30 Pcs. of 400 Watt HPSV/ preparation PM-4, Errection shop
TPA.
HPMV fixtures with 10 LED of 80W DB, Soda recovery DB 4, DB of MOL
each lighting fixtures resulted plant, ClO2 plant pump house DB & b) Paper Machines:
reduction in power consumption to Hospital DB) from flash prone area,
the tune of 11 kWh/Hr. after shifting all equipments on To reduce steam consumption
newly installed MCCs. in paper machines by controlling
• Replaced 200 nos. of double tube moisture in paper at pope reel. It
lighting fixtures in transformer/ • Provided motorized ‘cross travel will be carried out by installing QCS
PCC rooms mill wide with 9W operation’ instead of manual at 8T on PM-2 & PM-7 both enabling
LEDs resulted reduction in power hoist at PM-7 crane. improvement in paper quality vis a
consumption to the tune of 10 kWh/
vis reduction in steam consumption
Hr. • Repaired existing mill wide earthling
on both machines to the tune of
pits & also made new pits wherever
• Replaced energy inefficient de- 0.2 MT/ MT of paper equivalent to
required.
aerator pump & motor in Old reduction in coal consumption of
Power Plant with energy efficient • Mill wide damaged electric cable 1000 MT p.a.
ones resulted in reduction in power trays repaired / replaced.
consumption to the tune of 5 kWh/ (B) Electrical Energy Saving Measures:
Hr. (B) ENERGY CONSERVATION MEASURES (302 kWh/hr)
PLANNED:
• Replaced energy in-efficient 110kW/ 1) Replacement of old inefficient
6 pole motor with new energy 1. PAT-2 target given to Unit Shree vacuum pumps with efficient
efficient motor of the fire pump Gopal: vacuum pumps of Paper machine
resulted in reduction in power PM-1 & 2. Expected saving in
consumption to the tune of 2.5 kW/ To reduce energy consumption by power consumption to the tune
Hr. 5.9% or 4356 TOE(Tonnes of Oil of 100 kWh/hr.
Equivalent) in next two years i.e. up
• Replaced HPSV (High Pressure to FY2018-19. 2) Replacement of old inefficient air
Sodium Vapor), HPMV (High compressors with efficient screw
Pressure Mercury Vapor), MH (Metal 2. The following jobs have been type air compressors. Expected
Halide) lamps of 400W, 250W, 125W, planned to achieve above target. saving in power consumption to
70W with CFL (Compact fluorescent
the tune of 34 kWh/hr.
lamp) of 85W, 45W, 35W & 20 watt (A) Thermal Energy Saving Measures:
respectively resulted in reduction in (Coal saving 10,133 MT p.a.) 3) Replacement of non star rated
power consumption to the tune of air conditioners with BEE star
30 kWh/ Hr. a) Power Plant & Utilities

28 BALLARPUR INDUSTRIES LIMITED

ANNUAL REPORT 2016-17
 rated Air conditioners. Expected 2. TECHNOLOGY ABSORPTION B) BENEFITS DERIVED AS A RESULT OF THE
saving in power consumption to ABOVE
A) EFFORTS MADE TOWARDS
the tune of 9 kWh/hr.
TECHNOLOGY ABSORPTION Unit: Shree Gopal
4) Replacement of inefficient • Reduction in Water Consumption
1. Modified design of Krofta at PM-5
lighting fixtures with new from 76 m3/MT to 62 m3/MT of
for fiber recovery and reduce fresh
efficient LED fixtures Expected paper.
water consumption with advance
saving in power consumption to
flocculating agents. • Reliability improvement with
the tune of 9 kWh/hr.
repeated orders of new products
2. Replaced Rosin based sizing with
5) Installation of VFDs at 20 nos. of from customers.
AKD (Alkyl ketene dimer) to produce
indentified locations to reduce alkaline sized paper on all paper • Improvement in customer
power consumption to the tune machines enabling use of PCC as satisfaction with improved product
of 150 kWh/hr. filler for improving product quality quality.
in terms of brightness, opacity, bulk
C) CAPITAL INVESTMENT ON ENERGY C) In case of Imported Technology
and surface smoothness.
CONSERVATION EQUIPMENTS (imported during the last 3 years
3. Installation of In-House PCC plant (in reckoned from the beginning of the
Investment for FY2016–17: Nil process). financial year)

a) Technology Imported Year of Import

1. Unit Shree Gopal : Nil N. A.
b) Has Technology been fully absorbed N. A.
c) If not fully absorbed areas where this has not taken place, reasons therefore and future plan of action N. A.

D) Expenditure on R&D (including through approved agency)

a) Capital : Nil

b) Revenue : ` 3.42 Lac

c) Total Expenses as a percent of turnover (Net) : 0.016%

3. FOREIGN ExCHANGE EARNINGS AND OUTGO

a) Foreign exchange used : ` 41.69 Lac

b) Foreign exchange earned : ` 315.77 Lac

For and on behalf of the Board of Directors

GAUTAM THAPAR
Chairman
DIN 00012289

B. HARIHARAN
Group Director (Finance)
DIN 00012432

Date 23 May, 2017

Place New Delhi

ANNExURE TO BOARD'S REPORT 29

ANNUAL REPORT 2016-17
ANNExURE 2

THE RATIO OF THE REMUNERATION OF EACH DIRECTOR TO THE MEDIAN EMPLOYEE’S REMUNERATION AND OTHER DETAILS
IN TERMS OF SUB-SECTION 12 OF SECTION 197 OF THE COMPANIES ACT, 2013 READ WITH RULE 5(1) OF THE COMPANIES
(APPOINTMENT AND REMUNERATION OF MANAGERIAL PERSONNEL) RULES, 2014:
Note: The information provided below is on standalone basis for Indian Listed entity.
1. Ratio of the remuneration of each director to the median remuneration of all the employees of the Company for the financial year;

SL. NO. NAME OF DIRECTOR RATIO OF REMUNERATION TO MEDIAN REMUNERATION OF ALL EMPLOYEES
1 Mr. Gautam Thapar 0.29
2 Mr. R. R. Vederah 0.24
3 Mr. B. Hariharan -
4 Mr. Sanjay Labroo 0.19
5 Mr. A.S. Dulat 0.63
6 Mr. Ashish Guha 0.53
7 Mr. B. Venugopal 0.05
8 Mr. A. P. Singh 0.53
9 Ms. Nandini Adya 0.19
10 Mr. Sudhir Mathur* 0.05
* Appointed as an Additional Director (Independent) w.e.f. 7th February, 2017.
For the aforesaid purposes, median remuneration has been computed by ascertaining the annualized median salary for all employees of
the Company, employed at any time during the financial year 2016-2017, in all categories, whether workmen or white collar employees.
Remuneration includes variable pay paid during the year.
2. The percentage increase in remuneration of each Director, Chief Financial Officer, Chief Executive Officer, Company Secretary or Manager,
if any, in the financial year:
a) Non-Executive Directors: No increase.
Remuneration for the financial year 2016-2017 comprises attendance based sitting fee only.
b) Key Managerial Personnel

SL. NO. NAME % INCREASE IN REMUNERATION IN THE FINANCIAL YEAR

1 Mr. B Hariharan (WTD) -
2 Mr. Neehar Aggarwal (CEO) -
3 Mr. Akhil Mahajan (CS) -
3. The percentage increase in the median remuneration of employees in the financial year 2016-17: Nil
4. The number of permanent employees on the rolls of Company as on 31 March, 2017: 1284
5. Average percentile Increase in the salaries of employees other than the managerial personnel in the last financial year and its comparison
with the percentage increase in the managerial remuneration and justification thereof and point out if there are any exceptional
circumstances for increase in the managerial remuneration.- Not Applicable
6. The remuneration is as per Remuneration Policy of the Company.
7. Detail of top ten employees of the Company in terms of remuneration and name & details of other employees, who :
(i) if employed throughout the financial year, was in receipt of remuneration for that year which, in the aggregate, was not less than one
crore and two lakh rupees;

30 BALLARPUR INDUSTRIES LIMITED

ANNUAL REPORT 2016-17
 S Name Designation/ Remuneration Qualification Experience Date of Age Last employment Period of last
No. Nature of duties Received (`) (Years) commencement (Years) and Designation employment
of employment held before joining (years)
the Company
1 Anil Bhargava Head- Corporate 23,001,509 B.Tech,PGDIT, 43 09.10.2000 65 Executive Director- 4
Affairs TMP Cert Sales & Marketing,
Punj Lloyd Ltd.
2 Kurian Joseph Head - Legal 7,696,451 Bsc., LLB 26 10.06.2015 51 Group VP- CK Birla 1
Corporate Services
3 M S Vishwanathan Head - 6,456,576 MSc. 28 01.05.2015 52 Group Insurance 8
Insurance Head - Cairn India
Ltd
4 Akhil Mahajan Company 5,040,735 ACS, MBA 25 19.05.2006 52 Manager – Gillette 10
Secretary & India Limited
Chief General
Manager
5 M K Gupta Unit Head 3,596,164 Dip in 38 01.12.1978 57 - -
Electrical
Engineering
6 Narendra Rawal Chief General 3,549,473 BSc.(H), LL.B 25 14.03.2005 49 Liaison Consultant- 6
Manager- Corp. Proficient
Affairs Technologies Ltd.
7 R Hariharan Chief General 3,393,427 B.Sc 32 01.10.1998 55 Dy. Manager - 11
Manager (Engineering Purchase Binani
Mech) Zink Ltd
8 Atul Kumar General 1,900,941 Dip in Mech 28 15.11.2010 48 Maint. Head - 4
Sharma Manager Engineering Abhishek Industries
Ltd.
9 L V Thapliyal General 1,715,785 Diploma in 36 15.01.1981 59 - -
Manager Pulp & Paper
10 Sangotra Deputy General 2,278,956 MBA 24 05.11.2014 51 DGM - HR Subros 3
Bhattacherjee Manager Ltd.
- Human
Resources

Notes :
a) Employment is contractual. Other terms and conditions as per Company’s rules.
b) Remuneration includes salary, allowances, perquisites, medical expenses, leave travel concession, Company’s contribution to
provident and superannuation funds, gratuity paid (if any), rent paid in providing residential accommodation and performance
incentive.
c) None of the employees is related to any Director of the Company.
(ii) if employed for a part of the financial year, was in receipt of remuneration for any part of that year, at a rate which, in the aggregate,
was not less than [eight lakh and fifty thousand rupees per month]; Nil
iii) if employed throughout the financial year or part thereof, was in receipt of remuneration in that year which, in the aggregate, or as
the case may be, at a rate which, in the aggregate, is in excess of that drawn by the Managing Director or Whole-Time Director or
manager and holds by himself or along with his spouse and dependent children, not less than two percent of the equity shares of the
Company: Nil

For and on behalf of the Board of Directors

GAUTAM THAPAR
Chairman
DIN 00012289

B. HARIHARAN
Group Director (Finance)
DIN 00012432

Date 23 May, 2017

Place New Delhi

ANNExURE TO BOARD'S REPORT 31

ANNUAL REPORT 2016-17
ANNExURE 3

FORM NO. MGT. 9 EXTRACT OF ANNUAL RETURN

As on the financial year ended on 31 March, 2017.
[Pursuant to section 92(3) of the Companies Act, 2013 and rule 12(1) of the Companies (Management and Administration) Rules, 2014].

I. REGISTRATION AND OTHER DETAILS

i CIN L21010MH1945PLC010337
ii Registration Date 26 April, 1945
iii Name of the Company Ballarpur Industries Limited
iv Category / Sub-Category of the Company Public Company Limited by shares
v Address of the Registered office and contact details P.O. Ballarpur Paper Mills, District Chandrapur,
Maharashtra-442901
Phone +91 07172 240200
Fax +91 07172 240548
vi Whether listed company Yes
vii Name, address and contact details of registrar and M/s. RCMC Share Registry Pvt. Ltd.
transfer agent, if any B-25/1, First Floor, Okhla Industrial Area, Phase 2, New Delhi-110 020
Phone 011 26387320 / 21
Fax 011 26387322
Email investor.services@rcmcdelhi.com

II. PRINCIPAL BUSINESS ACTIVITIES OF THE COMPANY

All the business activities contributing 10% or more of the total turnover of the company shall be stated:

NAME AND DESCRIPTION OF MAIN NIC CODE OF THE PRODUCT / SERVICE % TO TOTAL TURNOVER OF THE
PRODUCTS / SERVICES COMPANY
Paper 1701 85.35
Paper Products & Office Supplies 1701 14.65

III. PARTICULARS OF HOLDING, SUBSIDIARY AND ASSOCIATE COMPANIES

SL. NAME AND ADDRESS OF THE CIN / GLN HOLDING / % OF SHARES APPLICABLE
No. COMPANY SUBSIDIARY / HELD SECTION
ASSOCIATE
1 Premier Tissues (India) Limited U85110KA1998PLC023512 Subsidiary (direct) 100 2(87)(ii)
2 BILT Graphic Paper Products U21000MH2007PLC172382 Subsidiary (Step 100 2(87)(ii)
Limited down)1
3 Avantha Agritech Limited U36999DL1989PLC034942 Subsidiary (direct) 91.67 2(87)(ii)
(Formerly known as Bilt Tree Tech
Limited)
4 Ballarpur International Holdings N.A. Subsidiary (direct) 100 2(87)(ii)
B.V., The Netherlands (BIH)
5 Bilt Paper B.V., The Netherlands N.A. Subsidiary (Step 62.21 2(87)(ii)
(BPBV) down)2
6 Ballarpur Paper Holdings B.V., The N.A. Subsidiary (Step 100 2(87)(ii)
Netherlands (BPH) down)3
7 Ballarpur Speciality Paper Holdings N.A. Subsidiary (direct) 100 2(87)(ii)
B.V., The Netherlands (BSPH)
8 Sabah Forest Industries Sdn. Bhd., N.A. Subsidiary (Step 98.08 2(87)(ii)
Malaysia (SFI) down)4
9 Bilt General Trading(FZE), UAE N.A. Subsidiary (Step 100 2(87)(ii)
down)5
1
Held through BPH |2Held through BIH |3Held through BPBV |4Held through BPH|5Held through BSPH

32 BALLARPUR INDUSTRIES LIMITED

ANNUAL REPORT 2016-17
IV. SHARE HOLDING PATTERN
Equity Share Capital Breakup as percentage of Total Equity

(I) CATERGORY-WISE SHARE HOLDING

CATEGORY OF NO. OF SHARES HELD AT THE BEGINNING OF NO. OF SHARES HELD AT THE END OF %
SHAREHOLDERS THE YEAR (1 April, 2016) THE YEAR (31 MARCH, 2017) CHANGE
DEMAT PHYSICAL TOTAL % OF DEMAT PHYSICAL TOTAL % OF DURING
TOTAL TOTAL THE YEAR
SHARES SHARES
A PROMOTERS
1) Indian
a) Individual / HUF 1,211,198 - 1,211,198 0.19 1,202,108 - 1,202,108 0.19 -
b) Central Govt - - - - - - - - -
c) State Govt(s) - - - - - - - - -
d) Bodies Corp. 322,799,469 - 322,799,469 49.24 322,799,469 - 322,799,469 49.24 -
e) Banks/FI - - - - - - - - -
f) Any Other - - - - - - - - -
Sub-total (A) (1) 324,010,667 - 324,010,667 49.43 324,001,577 - 324,001,577 49.43 -
2) Foreign
a) NRIs-Individuals - - - - 9090 - 9090 0.00 -
b) Other-Individuals - - - - - - - - -
c) Bodies Corp. - - - - - - - - -
d) Banks / FI - - - - - - - - -
e) Any Other - - - - - - - - -
Sub-total (A) (2) - - - - 9090 - 9090 0.00 -
Total shareholding 324,010,667 - 324,010,667 49.43 324,010,667 - 324,010,667 49.43 -
of Promoter (A) =
(A)(1)+(A)(2)
B PUBLIC
SHARHOLDING
1) Institutions
a) Mutual Funds 4,691,169 7,566 4,698,735 0.72 5,996,098 7,566 6,003,664 0.92 0.20
b) Banks / FI 647,551 24,009 671,560 0.10 559,982 24,693 5,846,75 0.09 (0.01)
c) Central Govt. 4,866 684 5,550 0.00 1,521 - 1,521 0.00 0.00
d) State Govt(s). - - - - - - - - -
e) Venture Capital - - - - - - - - -
Funds
f) Insurance 62,885,911 - 62,885,911 9.59 57,971,178 - 57,971,178 8.84 (0.75)
Companies
g) FIIs 99,360,560 48,342 99,408,902 15.16 311,175 48,342 359,517 0.05 (15.11)
h) Foreign Venture - - - - - - - - -
Capital Funds
i) FPI - - - - 80,672,727 - 80,672,727 12.31 12.31
j) Qualified Foreign - - - - - - - - -
Investor
k) Foreign Financial 3,676,010 - 3,676,010 0.56 - - - - (0.56)
Institution (JFC)
Sub-total (B) (1) 171,266,067 80,601 171,346,668 26.13 145,512,681 80,601 145,593,282 22.21 (3.92)
2) Non-Institutions
a) Bodies Corp. 35,906,181 49,287 35,955,468 5.48 54,071,752 46,287 54,118,039 8.26 2.77
i) Indian
ii) Overseas

ANNExURE TO BOARD'S REPORT 33

ANNUAL REPORT 2016-17
 CATEGORY OF NO. OF SHARES HELD AT THE BEGINNING OF NO. OF SHARES HELD AT THE END OF %
SHAREHOLDERS THE YEAR (1 April, 2016) THE YEAR (31 MARCH, 2017) CHANGE
DEMAT PHYSICAL TOTAL % OF DEMAT PHYSICAL TOTAL % OF DURING
TOTAL TOTAL THE YEAR
SHARES SHARES
b) Individuals
i) Individual 59,457,631 3,919,759 63,377,390 9.67 57,375,451 3,840,504 61,215,955 9.34 (0.33)
shareholders
holding nominal
share capital upto
` 1 lakh
ii) Individual 45,978,329 - 45,978,329 7.01 50,353,840 - 50,353,840 7.68 0.67
shareholders
holding nominal
share capital in
excess of ` 1 lakh
c) NBFC Regd with - - - - 328,735 - 328,735 0.05 0.05
RBI
d) Others
i) Clearing Members 2,932,543 - 2,932,543 0.45 6,862,850 - 6,862,850 1.05 0.60
ii) Non-Residents 5,690,419 159,555 5,849,974 0.89 3,122,363 158,451 3,280,814 0.50 (0.39)
iii) Foreign Company 5,734,635- 5,734,635 0.87 3,685,010 57,34,635 9,419,645 1.44 0.57
iv) Trust 279,722 58,320 338,042 0.05 281,569 58,320 339,889 0.05 -
Sub-total (B) (2) 150,244,825 9,921,556 160,166,381 24.43 176081570 98,38,197 18,59,19,767 28.36 3.92
Total shareholding 321,510,892 10,002,157 331,513,049 50.57 321,594,251 99,18,798 331,513,049 50.57 -
of Public (B) = (B)
(1)+(B)(2)
C SHARES HELD BY 123 123 0.00 - 123 123 0.00 0.00
CUSTODIAN FOR
GDRs& ADRs
Grand Total 645,521,559 10,002,280 655,523,839 100.00 645,604,918 99,18,921 655,523,839 100.00 0.00
(A+B+C)

(II) SHAREHOLDING OF PROMOTERS

SL. SHAREHOLDER’S NAME SHAREHOLDING AT THE BEGINNING OF THE SHAREHOLDING AT THE END OF THE YEAR
N0. YEAR
NO. OF SHARES % OF % OF SHARES NO. OF % OF % OF SHARES % CHANGE
TOTAL PLEDGED/ SHARES TOTAL PLEDGED / IN SHARE
SHARES ENCUMBERED SHARES ENCUMBERED HOLDING
OF THE TO TOTAL OF THE TO TOTAL DURING THE
COMPANY SHARES COMPANY SHARES YEAR

1 Avantha Holdings Ltd 322,689,019 49.23 322,674,019 322,689,019 49.23 322,689,019 0.00
2 Avantha Realty Ltd 110,000 0.02 - 110,000 0.02 - 0.00
3 Late Mr. B. M. Thapar - 0.00 - - 0.00 - 0.00
4 Blue Horizon 450 0.00 - 450 0.00 - 0.00
Investments Ltd
5 Mr. Gautam Thapar 1,179,127 0.18 - 1,188,218 0.18 - 0.00
6 Ms. Nandini Kapur 4,800 0.00 - 13,890 0.00 - 0.00
7 Late Mrs. Sulochana 27,271 0.00 - 0.00 0.00 - 0.00
Thapar
8 Ms. Shalini Waney 0 0.00 - 9,090 0.00 - 0.00
Total 324,010,667 49.43 322,674,019 324,010,667 49.43 322,689,019 0.00

34 BALLARPUR INDUSTRIES LIMITED

ANNUAL REPORT 2016-17
(III) CHANGE IN PROMOTERS’ SHAREHOLDING

Shareholding at the Increase/(Decrease) in shareholding Cumulative Shareholding

beginning of the Year during the year
No. of % of total Date/Reason No. of % of total No. of % of total
Shares shares of the Shares shares of the Shares shares of the
Company Company Company
Lt. Mrs. Sulochana Thapar 27271 0.00 29/07/2016- (18881) 0.00 9090 0.00
Transmission
Lt. Mrs. Sulochana Thapar - 0.00 05/08/2016- (9090) 0.00 Nil 0.00
Transmission
Ms. Nandini Kapur 4800 0.00 29/07/2016- 9090 0.00 13890 0.00
Transmission
Ms. Shalini Waney Nil 0.00 05/08/2016- 9090 0.00 Nil 0.00
Transmission
Mr. Gautam Thapar 1179127 0.18 11/11/2016- 9091 0.00 1188218 0.18
Transmission

(IV) SHAREHOLDING PATTERN OF TOP TEN SHAREHOLDERS (OTHER THAN DIRECTORS, PROMOTERS AND HOLDERS OF GDRs AND ADRs)

SL. NAME OF SHAREHOLDERS SHAREHOLDING AS ON CHANGE IN SHAREHOLDING AS ON

No. 1 APRIL, 2016 SHAREHOLDING 31 MARCH, 2017
NO. OF % OF TOTAL INCREASE DECREASE NO. OF % OF TOTAL
SHARES SHARES OF SHARES SHARES OF THE
THE COMPANY COMPANY
1 Samena Special Situations Mauritius 59,480,544 9.07 5,44,206 58,936,338 8.99
2 Life Insurance Corporation of India 43,872,365 6.69 - - 43,872,365 6.69
3 FINQUEST Securities Pvt Ltd 14,728,000 2.25 21,348,550 - 36,076,550 5.50
4 General Insurance Corporation of 12,001,050 1.83 300,000 11,701,050 1.78
India
5 Premier Investment Fund Limited 11,177,240 1.71 1,659,196 9,518,044 1.45
6 Citigroup Global Markets Mauritius 10,225,367 1.56 1,769,922 8,455,445 1.29
Private Limited
7 The New India Assurance Company 6,275,064 0.96 4,549,733 1,725,331 0.26
Limited
8 CIHL Private Equity Limited 5,710,989 0.87 - - 5,710,989 0.87
9 HDFC Trustee Company Limited - 4,678,500 0.71 1,630,500 3,048,000 0.46
HDFC Tax Saverfund
10 Dimensional Emerging Markets 4,581,296 0.70 501,488 4,079,808 0.62
Value Fund
11 Platinum Asia Fund* 1,051,923 0.16 - 1,051,923 - -
*Not in the list of top 10 shareholders as on 31 March, 2017 but is one of the top 10 shareholders as on 1 April, 2016.

ANNExURE TO BOARD'S REPORT 35

ANNUAL REPORT 2016-17
 (v) SHAREHOLDING OF DIRECTORS AND kEY MANAGERIAL PERSONNEL

SL. FOR EACH OF THE DIRECTORS AND kMP SHAREHOLDING AT THE CUMULATIVE SHAREHOLDING
No. BEGINNING OF THE YEAR DURING THE YEAR
NO. OF % OF TOTAL NO. OF % OF TOTAL
SHARES SHARES OF THE SHARES SHARES OF THE
COMPANY COMPANY
At the beginning of the year
1 Mr. Gautam Thapar 1,179,127 0.18 1,179,127 0.18
Date wise Increase / Decrease in Share holding during - - - -
the year specifying the reasons for increase / decrease
(e.g. allotment / transfer / bonus / sweat equity etc):
9091 acquired by Mr. Gautam Thapar on 11/11/2016 upon - - 1,188,218 0.18
transmission of shares of Late Mrs. Sulochana Thapar
2 Mr. Sanjay Labroo 495,802 0.08 495,802 0.08
3 Mr. B. Hariharan 8,040 0.00 8,040 0.00
At the end of the year
1 Mr. Gautam Thapar 1,188,218 0.18 11,88,218 0.18
2 Mr. Sanjay Labroo 495,802 0.08 495,802 0.08
3 Mr. B. Hariharan 8,040 0.00 8,040 0.00

V INDEBTEDNESS
Indebtedness of the Company including interest outstanding / accrued but not due for payment (` in Lacs)

SECURED LOANS UNSECURED LOANS DEPOSITS TOTAL

ExCLUDING INDEBTEDNESS
DEPOSITS
Indebtedness at the beginning of the financial year
i Principal Amount 96,945 100,477 - 197,422
ii Interest due but not paid - - - -
iii Interest accrued but not due 1,753 - - 1,753
Total (i+ii+iii) 98,698 100,477 - 199,175
Change in Indebtedness during the financial year
i Addition - 65,220 - 65,220
ii Reduction (5,076) - - (5,076)
Net Change (5,076) 65,220 - 60,144
Indebtedness at the end of the financial year
i Principal Amount 92,444 158,893 - 251,337
ii Interest due but not paid - - - -
iii Interest accrued but not due 1,178 6,804 - 7,982
Total (i+ii+iii) 93,622 165,697 - 259,319

36 BALLARPUR INDUSTRIES LIMITED

ANNUAL REPORT 2016-17
VI REMUNERATION OF DIRECTORS AND kEY MANAGERIAL PERSONNEL

A REMUNERATION OF MANAGING DIRECTOR (MD), WHOLE-TIME DIRECTORS (WTD) AND/OR MANAGER (in `) - Nil

SL. PARTICULARS OF REMUNERATION

No.
1 Gross Salary
i Salary as per provisions contained in section 17(1) of the Income-tax Act, 1961 -
ii Value of perquisites u/s 17(2) Income-tax Act, 1961 -
iii Profits in lieu of salary under section 17(3) Income-tax Act, 1961 -
2 Stock Option -
3 Sweat Equity -
4 Commission -
i as% of profit -
ii Others, specify -
5 Others, please specify (Provident Fund and Superannuation) -
TOTAL -

B REMUNERATION TO OTHER DIRECTORS (in `)

SL. PARTICULARS OF NAME OF DIRECTOR TOTAL

No. REMUNERATION
1 Independent Directors MR. SANjAY MR.ASHISH MR. A. S. MS. NANDINI MR. A. P. MR. SUDHIR
LABROO GUHA DULAT ADYA SINGH MATHUR
Sitting Fee for attending 80,000 2,20,000 2,60,000 80,000 2,20,000 20,000 8,80,000
board committee meetings
Commission - - - - - -
Others, please specify - - - - -
Total (1) 80,000 2,20,000 2,60,000 80,000 2,20,000 20,000 8,80,000
2 Other Non-Executive MR. GAUTAM MR. R. R. MR. B. - - - -
Directors THAPAR VEDERAH VENUGOPAL
Fee for attending board 1,20,000 1,00,000 20,000 2,40,000
committee meetings
Commission - - - - -
Others, please specify - - - - -
Total (2) 1,20,000 100,000 20,000 - - - 2,40,000
Total (B) = (1 + 2) - - - - - - 11,20,000

C REMUNERATION TO KEY MANAGERIAL PERSONNEL (KMP), OTHER THAN MD / MANAGER / WTD (in `)

SL. PARTICULARS OF REMUNERATION kEY MANAGERIAL PERSONNEL

No. MR. NEEHAR MR. AkHIL TOTAL
AGGARWAL MAHAjAN
CEO CS
1 Gross salary
a) Salary as per provisions contained in section 17(1) of the - 4,885,011 4,885,011
Income-tax Act, 1961
b) Value of perquisites u/s 17(2) Income-tax Act, 1961 - - -
c) Profits in lieu of salary under section 17(3) Income-tax Act, 1961 - - -
2 Stock Option - - -
3 Sweat Equity - - -
4 Commission - - -
as % of profit - - -
Others, specify - - -
5 Others, please specify (Provident Fund) - 155,724 155,724
TOTAL - 5,040,735 5,040,735

ANNExURE TO BOARD'S REPORT 37

ANNUAL REPORT 2016-17
VII PENALTIES / PUNISHMENT / COMPOUNDING OF OFFENCES: NIL

TYPE SECTION OF THE BRIEF DETAILS OF AUTHORITY [RD / APPEAL MADE,

COMPANIES ACT DESCRIPTION PENALTY / NCLT / COURT] IF ANY (GIVE
PUNISHMENT / DETAILS)
COMPOUNDING
FEES IMPOSED
COMPANY
Penalty - - - - -
Punishment - - - - -
Compounding - - - - -
DIRECTORS
Penalty - - - - -
Punishment - - - - -
Compounding - - - - -
OTHER OFFICERS IN DEFAULT
Penalty - - - - -
Punishment - - - - -
Compounding - - - - -

For and on behalf of the Board of Directors

GAUTAM THAPAR
Chairman
DIN 00012289

B. HARIHARAN
Group Director (Finance)
DIN 00012432

Date 23 May, 2017

Place New Delhi

38 BALLARPUR INDUSTRIES LIMITED

ANNUAL REPORT 2016-17
ANNEXURE TO BOARD'S REPORT
ANNExURE 4

ANNUAL REPORT ON CORPORATE SOCIAL RESPONSIBILITY (CSR) INITIATIVES FOR FY2016-17

1 A brief outline of the Company’s CSR enable the disadvantaged communities 3 Average net profit/(Loss) of the
policy and a reference to the web- to improve the quality of their life and Company for last three financial years:
link to the CSR policy and projects or preserve the ecosystem that supports (` 4.23 Cr.)
programs. the communities and the Company.
4 Prescribed CSR Expenditure (two per
CSR at BILT has been operational long For BILT, being a socially responsible cent of the amount as in item 3 above):
before the new Companies Act, 2013 company means: (` 8.46 Lacs)
came into force. CSR initiatives at BILT • Using environment friendly, energy 5 Details of CSR spent during the financial
are carried out at the manufacturing efficient and safe processes in year:
units through active partnerships with production.
3 Non Governmental Organisations a) Total amount to be spent for the
(NGOs). The Company is conducting • Making a sustained effort in financial year(April’16-March’17):
preserving the environment.
CSR activities based on the philosophy Nil
of sustainable development & inclusive • Building active and long term
Actual Amount Spent (April’16-
growth. partnerships with the communities
March’17): ` 13.17 Lacs
in which the Company operates to
At BILT CSR is taken up with a commitment b) Amount unspent, if any; Nil
improve significantly the condition
for the communities & environment. of the most disadvantaged amongst
BILT uses CSR to integrate economic, c) Manner in which the amount spent
them.
environmental and social objectives with during the financial year: is detailed
the Company’s operations and growth. • Contributing to inclusive growth and in Table.
The details of the CSR initiatives are equitable development in society.
Implementing Partner NGOs —
available at the Company’s website at • Promoting organisational integrity
www.biltcsr.com. • Society for All Round Development
and ethical business practices and
(SARD)
The Company has been implementing transparency in disclosure and
reporting procedures. • Vidya Pratisthan’s Institute of
CSR with a dedicated team and its CSR
Information Technology (VIIT)
initiatives are part of the Company’s well • Re-defining successful performance
defined CSR policy. for company managers to include • Bharatiya Agro Industries Foundation
the environmental and social impact (BAIF)
ExCERPT OF CSR POLICY
of how the company delivers growth 6 In case the Company has failed to spend
BILT is committed to its stakeholders and profitability. the two percent of the average net
to conduct its business in a responsible 2 Composition of the CSR Committee. profit of the last three financial years
manner that creates a sustained or any part thereof, the Company shall
positive impact on society. At BILT, CSR Mr. Gautam Thapar-Chairman
provide the reasons for not spending
is envisaged as a long term engagement Mr. R. R. Vederah-Member the amount in its Board report. Not
with key stakeholders. Focussed applicable.
programmes are implemented to Mr. Sudhir Mathur-Member

DETAILS OF THE CSR

AMOUNT IN `
SL. CSR PROjECT OR SECTOR IN PROjECTS OR PROGRAMS AMOUNT AMOUNT SPENT ON CUMULATIVE AMOUNT SPENT:
NO. ACTIVITY IDENTIFIED WHICH THE (1) LOCAL AREA OR OULTAY THE PROjECTS OR ExPENDITURE DIRECT OR THROUGH
PROjECT IS OTHER (2) SPECIFY THE (BUGDET PROGRAMS SUB- UPTO TO THE IMPLEMENTING
COVERED STATE AND DISTRICT PROjECT HEADS: (1) DIRECT REPORTING AGENCY
WHERE PROjECTS PROGRAM ExPENDITURE PERIOD
OR PROGRAMS WAS WISE) ON PROjECTS OR
UNDERTAkEN PROGRAMS (2)
OVERHEADS
1 Community Eradicating Local Area around the 8.65 8.65 8.65 Through Implementing
Development Project Hunger, Poverty Plant located in the State Agencies (Partner
& Malnutrition of Haryana NGO’s)
2 Community Promoting Local Area around the 4.52 4.52 4.52 Through Implementing
Development Project Education Plant located in the State Agencies (Partner
of Haryana NGO’s)
Total Programme 13.17 13.17 13.17
Cost
TOTAL 13.17 13.17 13.17

7 This is to certify that the implementation of CSR initiatives and its monitoring has been carried out in compliance with the CSR objectives
and Policy of the Company.
GAUTAM THAPAR NEEHAR AGGARWAL
Chairman CSR Committee Chief Executive Officer

ANNExURE TO BOARD'S REPORT 39

ANNUAL REPORT 2016-17
SECRETARIAL AUDIT
REPORT
FOR THE FINANCIAL YEAR ENDED thereunder to the extent of Foreign Standards, etc. mentioned above subject
MRACH 31, 2017 Direct Investment, Overseas Direct to the observation that the Company has
Investment and External Commercial Group Director (Finance) in the place of
To, Borrowings; Chief Finance Officer.
The Members
BALLARPUR INDUSTRIES LIMITED (v) The following Regulations and Guidelines We further report that:
P.O. Ballarpur Paper Mills – 442901 prescribed under the Securities and
The Board of Directors of the Company is
Distt. Chandrapur, Maharashtra Exchange Board of India Act, 1992 (‘SEBI
duly constituted with proper balance of
Act’) to the extent applicable during
We have conducted the secretarial audit Executive Directors, Non-Executive Directors
audit period:-
of the compliance of applicable statutory and Independent Directors subject to
provisions and the adherence to good (a) The Securities and Exchange Board above observations. The changes in the
corporate practices by M/s. Ballarpur of India (Substantial Acquisition of composition of the Board of Directors that
Industries Limited (hereinafter called the Shares and Takeovers) Regulations, took place during the period under review
Company). Secretarial Audit was conducted 2011; were carried out in compliance with the
in a manner that provided us a reasonable provisions of the Act.
(b) Securities and Exchange Board Of
basis for evaluating the corporate conducts/ India (Prohibition Of Insider Trading) Adequate notice was given to all Directors
statutory compliances and expressing our Regulations, 2015; for the Board Meetings, agenda and detailed
opinion thereon. notes on agenda were sent at least seven
(c) The Securities and Exchange Board of
Based on our verification of the Company’s days in advance, and a system exists for
India (Issue of Capital and Disclosure
books, papers, minute books, forms and seeking and obtaining further information
Requirements) Regulations, 2009;
returns filed and other records maintained and clarifications on the agenda items
by the company and also the information (d) The Securities and Exchange Board before the meeting and for meaningful
provided by the Company, its officers, agents of India (Share Based Employee participation at the meeting.
and authorized representatives during the Benefits) Regulations, 2014;
All decisions at Board Meetings and
conduct of secretarial audit, we hereby (e) The Securities and Exchange Board Committee Meetings are carried out
report that in our opinion, the company of India (Issue and Listing of Debt unanimously as recorded in the minutes of
has, during the audit period covering Securities) Regulations, 2008; the meetings of the Board of Directors or
the financial year ended March 31, 2017 Committee of the Board, as the case may be.
complied with the statutory provisions listed (f) The Securities and Exchange Board
of India (Registrars to an Issue and We further report that there are adequate
hereunder and also that the Company has
Share Transfer Agents) Regulations, systems and processes in the Company
proper Board-processes and compliance-
1993 regarding the Companies Act commensurate with the size and operations
mechanism in place to the extent, in the
and dealing with client to the extent of the Company to monitor and ensure
manner and subject to the reporting made
of securities issued; compliance with applicable laws, rules,
hereinafter:
regulations and guidelines.
We have examined the books, papers, (g) The Securities and Exchange Board
minute books, forms and returns filed and of India (Delisting of Equity Shares)
Regulations, 2009;
other records maintained by the Company For PDS & CO.
for the financial year ended on March 31, (h) The Securities and Exchange Board Company Secretaries
2017 according to the provisions of: of India (Buyback of Securities)
Regulations, 1998; (Prashant Kumar Balodia)
(i) The Companies Act, 2013 (the Act) and Partner
the rules made thereunder; We have also examined compliance with the Membership No. 6047
applicable clauses of the following: Certificate of Practice No. 6153
(ii) The Securities Contracts (Regulation)
Act, 1956 (‘SCRA’) and the rules made (i) Secretarial Standards issued by the Date: 23.05.2017
thereunder; Institute of Company Secretaries of India. Place: New Delhi
(iii) The Depositories Act, 1996 and the (ii) The Securities and Exchange Board of
Note: This report is to be read with our letter
Regulations and Bye-laws framed India (Listing Obligations and Disclosure
of even date which is annexed as Annexure
thereunder to the extent of regulation Requirements) Regulations, 2015.
A and forms an integral part of this report.
55A;
During the period under review the
(iv) Foreign Exchange Management Act, Company has complied with the provisions
1999 and the rules and regulations made of the Act, Rules, Regulations, Guidelines,

40 BALLARPUR INDUSTRIES LIMITED

ANNUAL REPORT 2016-17
SECRETARIAL AUDIT
REPORT
ANNExURE A

The Members the compliance of laws, rules and

BALLARPUR INDUSTRIES LIMITED regulations and happening of events etc.
P.O. Ballarpur Paper Mills – 442901
Distt. Chandrapur, Maharashtra 5. The compliance of the provisions
of Corporate and other applicable
1. Maintenance of secretarial records is laws, rules, regulations, standards is
the responsibility of the management the responsibility of management.
of the Company. Our responsibility is to Our examination was limited to the
express an opinion on these secretarial verification of procedures on random
records based on our audit. test basis.

2. We have followed the audit practices 6. The Secretarial Audit report is neither
and processes as were appropriate to an assurance as to the future viability
obtain reasonable assurance about of the company nor of the efficacy
the correctness of the contents of the or effectiveness with which the
secretarial records. The verification management has conducted the affairs
was done on the random test basis to of the Company.
ensure that correct facts are reflected in
secretarial records. We believe that the
processes and practices, we followed For PDS & CO.
provide a reasonable basis for our Company Secretaries
opinion.
(Prashant Kumar Balodia)
3. We have not verified the correctness Partner
and appropriateness of financial records Membership No. 6047
and Books of Accounts of the Company. Certificate of Practice No. 6153

4. Where ever required, we have obtained Date: 23.05.2017

the Management representation about Place: New Delhi

ANNExURE TO BOARD'S REPORT 41

ANNUAL REPORT 2016-17
INDEPENDENT AUDITORS’
REPORT
TO THE MEMBERS OF BALLARPUR of the standalone Ind AS financial statements Basis for Qualified Opinion
INDUSTRIES LIMITED that give a true and fair view and are free
from material misstatement, whether due to We draw attention to Note 44 of the
Report on the Standalone Ind AS Financial fraud or error. standalone Ind AS financial statements
Statements regarding the liability for the put option on
Auditor’s Responsibility the Company pertaining to subsidiaries to
We have audited the accompanying be provided on the settlement.
standalone Ind AS financial statements of Our responsibility is to express an opinion on
Ballarpur Industries Limited (‘the Company’), these standalone Ind AS financial statements Qualified Opinion
which comprise the balance sheet as at 31st based on our audit.
March 2017, the statement of profit and loss In our opinion and to the best of our
(including other comprehensive income), We have taken into account the provisions information and according to the
cash flow statement and the statement of of the Act, the accounting and auditing explanations given to us, except for the
changes in equity for the year then ended standards and matters which are required effects of the matter described in the Basis
and a summary of the significant accounting to be included in the audit report under the for Qualified Opinion paragraph above,
policies and other explanatory information provisions of the Act and the Rules made the aforesaid standalone Ind AS financial
(herein after referred to as “standalone thereunder. statements give the information required by
Ind AS financial statements”) in which the Act in the manner so required and give
We conducted our audit of the standalone
are incorporated the audited financial a true and fair view in conformity with the
Ind AS financial statements in accordance
statements for the year ended on that date accounting principles generally accepted in
with the Standards on Auditing specified
of the Unit of the Company audited by other India including the Ind AS, of the financial
under Section 143(10) of the Act. Those
auditor. position of the Company as at 31st March
Standards require that we comply with
2017, and its financial performance including
Management’s Responsibility for the ethical requirements and plan and perform
other comprehensive income, its cash flows
Standalone Ind AS Financial Statements the audit to obtain reasonable assurance
and the changes in equity for the year ended
about whether the standalone Ind AS
on that date.
The Company’s Board of Directors is financial statements are free from material
responsible for the matters stated in Section misstatement. Emphasis of Matter
134(5) of the Companies Act, 2013 (“the
Act”) with respect to the preparation of An audit involves performing procedures to We draw attention to Note 45 of the
these standalone Ind AS financial statements obtain audit evidence about the amounts standalone Ind AS financial statements
that give a true and fair view of the financial and the disclosures in the standalone Ind regarding invocation of Strategic Debt
position, financial performance including AS financial statements. The procedures Restructuring by the Lenders due to non-
other comprehensive income, cash flows selected depend on the auditor’s judgment, fulfillment of debt obligations. On the basis
and changes in equity of the Company in including the assessment of the risks of of projected business plan as agreed with
accordance with the accounting principles material misstatement of the standalone the lenders, these financial statements
generally accepted in India, including Ind AS financial statements, whether due have been prepared on a going concern
the Indian Accounting Standards (Ind AS) to fraud or error. In making those risk basis. These financial statements do not
prescribed under Section 133 of the Act read assessments, the auditor considers internal include any adjustments relating to the
with relevant rules issued thereunder. financial control relevant to the Company’s recoverability and classification of recorded
preparation of the standalone Ind AS financial asset amounts and classification of liabilities
This responsibility also includes maintenance statements that give a true and fair view in that may be necessary if the Company is
of adequate accounting records in order to design audit procedures that are unable to continue as going concern.
accordance with the provisions of the Act appropriate in the circumstances. An audit
for safeguarding the assets of the Company also includes evaluating the appropriateness Our opinion is not modified/qualified in
and for preventing and detecting frauds and of the accounting policies used and the respect of this matter.
other irregularities; selection and application reasonableness of the accounting estimates
of appropriate accounting policies; making made by the Company’s Directors, as well Other Matter
judgments and estimates that are reasonable as evaluating the overall presentation of the
We did not audit the Ind AS financial
and prudent; and design, implementation standalone Ind AS financial statements.
statements of Kamlapuram Unit of the
and maintenance of adequate internal Company included in the standalone Ind
financial controls, that were operating We believe that the audit evidence we have
obtained is sufficient and appropriate to AS financial statements of the Company
effectively for ensuring the accuracy and whose Ind AS financial statements reflect
completeness of the accounting records, provide a basis for our audit opinion on the
standalone Ind AS financial statements. total assets of ` 31,043.98 lacs as at
relevant to the preparation and presentation

42 BALLARPUR INDUSTRIES LIMITED

ANNUAL REPORT 2016-17
31st March 2017 and total revenues of sent to us and have been properly according to the explanations given
` 118.38 lacs for the year ended on that dealt with by us in preparing this to us:
date, as considered in the standalone Ind report;
i. the Company has disclosed the
AS financial statements. The Ind AS financial
d) The balance sheet, the statement impact of pending litigations
statements of this Unit has been audited
of profit and loss (including other on its financial position in its
by the Unit Auditor whose report has been
comprehensive income) , cash flow standalone Ind AS financial
furnished to us, and our opinion in so far
statement and the statement of statements – Refer Note 40 to
as it relates to the amounts and disclosures
changes in equity dealt with by this the standalone Ind AS financial
included in respect of this Unit is solely on
Report are in agreement with the statements;
the report of such Unit Auditor.
books of account and report of the
ii. the Company has made
Our opinion is not modified/qualified in unit auditor;
provision, as required under the
respect of this matter.
e) In our opinion, except for the effects applicable law or accounting
Report on Other Legal and Regulatory of the matter described in the Basis standards, for material
Requirements for Qualified Opinion paragraph foreseeable losses, if any, on
above, the aforesaid standalone Ind long-term contracts including
1. As required by the Companies (Auditor’s AS financial statements comply with derivative contracts – Refer Note
Report) Order, 2016 (“the Order”) issued the Accounting Standards specified 22 & 27 to the standalone Ind AS
by the Central Government of India in under Section 133 of the Act read financial statements;
terms of section 143(11) of the Act, we with relevant rule issued thereunder;
give in the Annexure A, a statement on iii. there has been no delay in
the matters specified in the paragraph 3 f) The matter described in the Basis for transferring amounts, required
and 4 of the order. Qualified Opinion paragraph above, to be transferred, to the Investor
in our opinion, may have an adverse Education and Protection Fund
2. As required by Section 143(3) of the Act, effect on the functioning of the by the Company; and
we report that: Company. iv. the Company has provided
a) We have sought and obtained all requisite disclosures in its
g) On the basis of the written
the information and explanations standalone Ind AS financial
representations received from the
which to the best of our knowledge statements as to holdings as
directors as on 31st March 2017
and belief were necessary for the well as dealings in Specified
taken on record by the Board of
purposes of our audit. Bank Notes during the period
Directors, none of the directors is
from 8 November, 2016 to 30
disqualified as on 31st March 2017
b) In our opinion, except for the effects December, 2016 and these are
from being appointed as a director in
of the matter described in the Basis in accordance with the books
terms of Section 164 (2) of the Act;
for Qualified Opinion paragraph of accounts maintained by the
above, proper books of account as h) With respect to the adequacy of Company. Refer Note 43 to the
required by law have been kept by the internal financial controls over standalone Ind AS financial
the Company so far as it appears financial reporting of the Company statements.
from our examination of those books and the operating effectiveness of ASHWIN MANkESHWAR
and report of the Unit auditor; such controls, refer to our separate Partner
report in “Annexure B”; and Membership No. 046219
c) Except for the effects of the matter
described in the Basis for Qualified For and on behalf of
i) With respect to the other matters to
Opinion paragraph above, the K. K. Mankeshwar & Co.,
be included in the Auditor’s Report
reports on the accounts of the Chartered Accountants
in accordance with Rule 11 of the
Unit Kamlapuram of the Company FRN: 106009W
Companies (Audit and Auditors)
audited under Section 143 (8) of the Rules, 2014, in our opinion and to New Delhi, dated the
Act by such Unit Auditor have been the best of our information and 23rd May, 2017

INDEPENDENT AUDITORS' REPORT 43

ANNUAL REPORT 2016-17
“ANNExURE A” TO THE INDEPENDENT AUDITOR’S REPORT

The Annexure referred to in paragraph 1 between the physical stocks and the the prescribed accounts and records
under “Report on Other Legal and Regulatory book records were not material. have been made and maintained. We
Requirement” section of our Independent have, however, not made a detailed
3. The Company has not granted any loan,
Auditors’ Report to the members of the examination of the records with a
secured or unsecured, to Companies,
Company on the Ind AS Financial Statements view to determining whether they are
firms or other parties covered in the
for the year ended 31st March 2017, we accurate or complete.
registers maintained in pursuance of
report that:
Section 189 of the Act. Accordingly, 7. a) According to the information and
1. a) The Company has maintained paragraph 3(iii) of the Order is not explanation given to us, undisputed
proper records showing full applicable to the Company. statutory dues including Provident
particulars, including quantitative Fund, Employees State Insurance,
4. According to the information and
details and situation of fixed assets; Income-Tax, Sales tax, Service Tax,
explanation given to us, the Company
Duty of Customs, Duty of Excise,
b) The fixed assets were physically has not granted any loans or made
Value added Tax, Cess and other
verified during the year by the investment or provided any security/
material statutory dues have been
Management. guarantee as covered by provisions
regularly deposited during the
of Sections 185 and 186 of the Act.
No material discrepancies year by the Company with the
Accordingly, Paragraph 3(iv) of the
were noticed on such physical appropriate authorities though
Order is not applicable to the Company.
verification. there has been a slight delay in few
5. According to the information and cases.
c) On examination of the records of
explanation given to us and the
the Company, the title deeds of According to the information
examined by us, the Company has not
immovable properties are held in and explanations given to us, no
accepted any deposits from the public
the name of the Company except undisputed amounts payable
during the year. Accordingly, Paragraph
in Unit Kamlapuram, land value in respect of Provident Fund,
3(v) of the Order is not applicable to the
at Rs. 44 lacs acquired under Employees State Insurance,
Company.
agreements and under possession Income-Tax, Sales tax, Service Tax,
of the Unit are yet to be registered 6. We have broadly reviewed the books of Duty of Customs, Duty of Excise,
in the name of the Unit. account and records maintained by the Value added Tax, Cess and other
Company relating to the products of the statutory dues as applicable to it
2. The inventory, except goods-in-
Company pursuant to the Rules made were outstanding, as at 31st March
transit, has been physically verified
by the Central Government for the 2017 for a period of more than six
by the management during the year.
maintenance of cost records under Sub- months from the date they became
In our opinion, the frequency of
section (1) of Section 148 of the Act and payable except as given below:-
such verification is reasonable. The
we are of the opinion that prima facie
discrepancies noticed on verification

NAME OF THE STATUTE Amount in Lacs Period Actual date of

payment
Provident Fund 138.10 May-16 to Aug- 16 Not Paid
Professional Tax 3.63 June-16 to Aug-16 Not Paid
Provident Fund 15.87 April-2016 Not Paid
Sale Tax .32 June-2016 Not Paid
Excise Duty & Service Tax 5.43 Apr-16 to Sep-16 Not Paid
TDS 102.48 July-16 to Sep-16 Not Paid
Professional Tax .07 Sep-16 Not Paid
Total 265.90

b) According to the information and with the appropriate authorities on our examination of the records of
explanations given to us, there are on account of disputes other than the Company, the company has not
no dues of Income-Tax, Sales tax, those mentioned in “Annexure A defaulted in repayments of loans or
Value added tax, Service Tax, Duty (1)” to this report. borrowing to a financial institutions,
of Customs, Duty of Excise, Cess 8. According to the information and bank, government or dues to debenture
which have not been deposited explanations give to us and based holders except as given below:

44 BALLARPUR INDUSTRIES LIMITED

ANNUAL REPORT 2016-17
 Sr. No. Bank/ Financial Institution Amount of default as Due date of Payment Status
at the balance sheet Repayment
date( In Lacs)
1. Exim Bank 714.28 31-Oct-2016 Not paid
2. Exim Bank 714.28 31-Jan-2017 Not Paid
3. State Bank of Travancore 125.00 23-Sep- 2016 Not Paid
4. State Bank of Travancore 125.00 23-Dec- 2016 Not Paid
5. State Bank of Travancore 125.00 23-Mar- 2017 Not Paid
6. The South Indian Bank 500.00 26-Mar-2017 Not Paid
7. IDBI Bank 125.00 31-Mar-2017 Not Paid
Total 2,428.56

9. The Company has not raised money 3 of the order is not applicable to the with directors or persons connected
by way of initial public offer or Company. with him. Accordingly, clause (xv) of
further public offer (including debt the paragraph 3 of the Order is not
13. According to the information and
instruments). However the moneys applicable.
explanation given to us, all transactions
raised by way of term loan which were
with related parties are in compliance 16. The Company is not required to be
applied for the purpose for which those
with section 177 and 188 of the Act, registered under section 45-IA of the
were obtained.
wherever applicable and the details Reserve Bank of India Act, 1934.
10. According to the information and have been disclosed in the Ind AS
explanations given to us, no material Standalone Financial Statements as
fraud by the Company or on the required by the applicable accounting
Company by its officers or employees standards.
has been noticed or reported during the
14. According to the information and
course of our audit. ASHWIN MANkESHWAR
explanation given to us, the Company
Partner
11. According to the information and has not made any preferential allotment
Membership No. 046219
explanations given to us, no managerial or private placement of shares or fully
For and on behalf of
remuneration has been paid or or partly convertible debenture during
K. K. Mankeshwar & Co.,
provided under the provisions of the year.
Chartered Accountants
Section 197 read with Schedule V to the
15. According to the information and FRN: 106009W
Act. Accordingly, paragraph 3(xi) of the
explanations given to us and based
Order is not applicable to the Company.
on our examination of the records of
12. As the Company is not a Nidhi Company, the Company, the Company has not New Delhi, dated the
accordingly clause (xii) of paragraph entered into non-cash transactions 23rd May, 2017

INDEPENDENT AUDITORS' REPORT 45

ANNUAL REPORT 2016-17
ANNEXURE ‘A (1)’ TO PARA 7 (b) OF ANNEXURE – ‘A’ OF OUR REPORT OF EVEN DATE

Name of Statute Nature of dues Amount Period to which the Forum where the dispute is pending
(` in Lakhs) amount relates
Central Excise Tariff Act 1985 Excise 21.6 1996-97; 2010-11; Asst. Commissioner, Yamuna Nagar
Central Excise Tariff Act 1985 Excise 11.32 1996-97 Joint Commissioner, Panchkula
Central Excise Tariff Act 1985 Excise 38.48 2009-10; 2015-16 Commissioner Panchkula
Central Excise Tariff Act 1985 Excise 694.29 2003-04 to 2010-11 CESTAT, Delhi & Chandigarh
Central Excise Tariff Act 1985 Excise 232.67 2004-05 to 2009-10 Commissioner (Appeals), Delhi
Customs Act,1962 Custom 36.47 2012-13 The Commissioner Custom (Apeals),
Kandla
Customs Act,1962 Custom 32.83 2012-13 Commissioner Custom (Apeals), Jam
Nagar
Punjab General Sales Tax Act, Sales Tax 582.68 1989 to 1995 Punjab VAT Tribunal, Chandigarh
1948
UP Trade Tax, 1948 Sales Tax 0.98 1997-98 Trade Tax Tribunal, Saharanpur
UP Trade Tax, 1948 Sales Tax 0.66 2002-03 Trade Tax Tribunal, Saharanpur
UP Tax on Entry of Goods Act, Entry Tax 1.92 2001-02 Trade Tax Tribunal, Saharanpur
2000
UP VAT Act, 2008 Sales Tax 1.22 2008-09 Joint Commisioner Appeals-Saharanpur
UP VAT Act, 2008 Sales Tax 1.47 2008-09 Trade Tax Tribunal, Saharanpur
UP Trade Tax, 1948 Sales Tax 11.74 1994-95 Nainital High Court
Central Sales Tax Act,1956 Sales Tax 0.53 2008-09 Dy. Commissioner (Appeals), Patiala
Central Sales Tax Act,1956 Sales Tax 0.88 2011-12 Jt. Commissioner (Appeals), Ambala
Haryana VAT Act, 2003 Sales Tax 2.76 2015-16 Jt. Excise & Taxation Commissioner
Appeals-Ambala
UP VAT Act, 2008 Sales Tax 5.99 2014-15 Addl. Commissioner (Appeal)-Saharanpur
UP VAT Act, 2008 Sales Tax 1.12 2010-11 Addl. Commissioner (Appeal)-Saharanpur
UP VAT Act, 2008 Sales Tax 35.1 2016-17 Dy. Commissioner Assessment-Saharanpur
UP VAT Act, 2008 Sales Tax 0.74 2009-10 Addl. Commissioner Gr-2,Saharapur
Kerala Vat Act,2005 Sales Tax 6.8 2011-12 Commissioner (Appeals), Kerala
Central Sales Tax, 1956 Sales Tax 14.7 2001-2002 Applellate Deputy Commissioner (CT),
Secunderabad
Central Excise Act, 1944 Excise duty and 723.68 2012-2013 Customs, Excise and Service tax Applellate
Penalty Tribunal Hyderabad
Income Tax Act, 1961 Income Tax 3,981.36 1981-82 to 1990-91, Pending before high court
1997-98, 1999-2000,
2000-01, 2002-03,
2003-04, 2004-05,
2006-07 to 2010-11
Income Tax Act, 1961 Income Tax 1,785.38 1994-95, 2005-06, Pending before tribunal
2009-10
Income Tax Act, 1961 Income Tax 3,954.81 2008-09 Pending before Supreme Court
Total 12,182.18

46 BALLARPUR INDUSTRIES LIMITED

ANNUAL REPORT 2016-17
ANNEXURE - B TO THE AUDITORS’ REPORT

Report on the Internal Financial Controls of India. Those Standards and the Guidance and that receipts and expenditures of the
under Clause (i) of Sub-section 3 of Section Note require that we comply with ethical company are being made only in accordance
143 of the Companies Act, 2013 (“the Act”) requirements and plan and perform the with authorisations of management and
audit to obtain reasonable assurance about directors of the company; and (3) provide
We have audited the internal financial reasonable assurance regarding prevention
whether adequate internal financial controls
controls over financial reporting of Ballarpur or timely detection of unauthorised
over financial reporting was established and
Industries Limited (“the Company”) as of maintained and if such controls operated acquisition, use, or disposition of the
31st March 2017 in conjunction with our effectively in all material respects. Company's assets that could have a material
audit of the standalone Ind AS financial effect on the Ind AS financial statements.
statements of the Company for the year Our audit involves performing procedures to
ended on that date. obtain audit evidence about the adequacy Inherent Limitations of Internal Financial
of the internal financial controls system Controls Over Financial Reporting
Management’s Responsibility for Internal over financial reporting and their operating
Financial Controls Because of the inherent limitations of
effectiveness. Our audit of internal financial
internal financial controls over financial
The Company’s management is responsible controls over financial reporting included
reporting, including the possibility of
for establishing and maintaining internal obtaining an understanding of internal
collusion or improper management override
financial controls based on the internal financial controls over financial reporting,
of controls, material misstatements due to
control over financial reporting criteria assessing the risk that a material weakness
error or fraud may occur and not be detected.
established by the Company considering exists, and testing and evaluating the design
Also, projections of any evaluation of the
the essential components of internal and operating effectiveness of internal
internal financial controls over financial
control stated in the Guidance Note on control based on the assessed risk. The
reporting to future periods are subject to the
Audit of Internal Financial Controls over procedures selected depend on the auditor’s
risk that the internal financial control over
Financial Reporting issued by the Institute judgment, including the assessment of
financial reporting may become inadequate
of Chartered Accountants of India (‘ICAI’). the risks of material misstatement of the
because of changes in conditions, or that the
These responsibilities include the design, standalone Ind AS financial statements,
degree of compliance with the policies or
whether due to fraud or error.
implementation and maintenance of procedures may deteriorate.
adequate internal financial controls that We believe that the audit evidence we have
were operating effectively for ensuring Opinion
obtained is sufficient and appropriate to
the orderly and efficient conduct of its provide a basis for our audit opinion on the In our opinion, the Company has, in all
business, including adherence to company’s Company’s internal financial controls system material respects, an adequate internal
policies, the safeguarding of its assets, the over financial reporting. financial controls system over financial
prevention and detection of frauds and reporting and such internal financial controls
errors, the accuracy and completeness of Meaning of Internal Financial Controls over
over financial reporting were operating
the accounting records, and the timely Financial Reporting
effectively as at 31st March 2017, based on
preparation of reliable financial information, A company's internal financial control over the internal control over financial reporting
as required under the Companies Act, 2013. financial reporting is a process designed to criteria established by the Company
provide reasonable assurance regarding considering the essential components of
Auditors’ Responsibility
the reliability of financial reporting and the internal control stated in the Guidance Note
Our responsibility is to express an opinion preparation of Ind AS financial statements on Audit of Internal Financial Controls Over
on the Company's internal financial controls for external purposes in accordance with Financial Reporting issued by the Institute of
over financial reporting based on our audit. generally accepted accounting principles. Chartered Accountants of India.
We conducted our audit in accordance with A company's internal financial control over
the Guidance Note on Audit of Internal financial reporting includes those policies
ASHWIN MANkESHWAR
Financial Controls over Financial Reporting and procedures that (1) pertain to the
Partner
(the “Guidance Note”) and the Standards maintenance of records that, in reasonable
Membership No. 046219
on Auditing, issued by ICAI and deemed detail, accurately and fairly reflect the
For and on behalf of
to be prescribed under section 143(10) of transactions and dispositions of the assets
K. K. Mankeshwar & Co.,
the Companies Act, 2013, to the extent of the company; (2) provide reasonable
Chartered Accountants
applicable to an audit of internal financial assurance that transactions are recorded
FRN: 106009W
controls, both applicable to an audit of as necessary to permit preparation of Ind
Internal Financial Controls and, both issued AS financial statements in accordance with New Delhi, dated the
by the Institute of Chartered Accountants generally accepted accounting principles, 23rd May, 2017

INDEPENDENT AUDITORS' REPORT 47

ANNUAL REPORT 2016-17
Balance Sheet as aT March 31, 2017

` in Lacs

Note No. as at as at as at
31st March-2017 31st March-2016 1st april-2015

assETs
(1) Non-current assets
(a) Property, Plant and Equipment 5 233,538 258,319 263,439
(b) Capital work-in-progress 6 28,112 26,711 16,041
(c) Other intangible assets 7 3,351 4,978 5,785
(d) Intangible assets under development 8 3,144 3,144 -
(e) Financial assets
(i) Investments 9 106,535 106,535 81,378
(ii) Others 10 171 223 350
(f) Other non-current assets 11 28 29 46
(2) current assets
(a) Inventories 12 32,468 28,478 29,363
(b) Financial assets
(i) Trade receivables 13 537 1,555 5,663
(ii) Cash and cash equivalents 14 253 5,627 746
(iii) Bank balances other than (ii) above 15 246 260 270
(iv) Loans 16 52,764 48,772 13,607
(v) Others 17 875 771 784
(c) Other current assets 18 6,299 6,359 5,546
Asset Held For Sale - - 11
Total assets 468,321 491,761 423,029

EQUITY aND LIaBILITIEs

Equity
(a) Equity share capital 19 13,112 13,112 13,112
(b) Other equity 109,302 154,475 153,793
Liabilities
(1) Non-current liabilities
(a) Financial liabilities
(i) Borrowings 20 75,209 90,774 42,550
(ii) Other financial liabilities 21 52,243 93,189 66,080
(b) Provisions 22 3,279 3,541 3,422
(c) Deferred tax liabilities (Net) 23 2,698 5,240 5,633
(2) Current liabilities
(a) Financial liabilities
(i) Borrowings 20 158,893 100,477 107,507
(ii) Trade payables 24 11,859 12,526 12,097
(iii) Other financial liabilities 25 35,794 15,545 16,173
(b) Other current liabilities 26 1,740 844 755
(c) Provisions 27 4,192 2,038 1,907
Total Equity and Liabilities 468,321 491,761 423,029
Significant Accounting Policies and Notes to Standalone Ind AS 1-47
Financial Statements

As per our report of even date attached For Ballarpur Industries Limited
aShWIn ManKeShWaR R. R. VeDeRah
Partner Vice Chairman
Membership No. 046219
B. haRIhaRan
For and on behalf of
Group Director (Finance)
K. K. ManKeShWaR & co.
Chartered Accountants BIMal KhanDelWal
FRN: 106009W Chief Financial Officer

New Delhi, dated the aKhIl MahaJan

23rd May, 2017 Company Secretary

48 BALLARPUR INDUSTRIES LIMITED

ANNUAL REPORT 2016-17
StateMent of PRofIt anD loSS
FOr ThE FINaNcIaL
YEar ENDED March 31, 2017

` in Lacs

Year Ended Year Ended

Note No.
31-March-2017 31-March-2016
I Revenue from operations 28 22,661 59,183
II Other income 29 6,696 5,360
III Total Income (I+II) 29,357 64,543
IV Expenses
Cost of materials consumed 30 6,829 14,665
Purchase of stock in trade 2,007 2,753
Changes in inventories of finished goods, stock-in -trade and 31 2,638 7,145
work- in-progress
Employee benefits expenses 32 7,502 6,910
Finance costs 33 15,319 5,193
Depreciation and amortisation expenses 5&7 5,269 5,810
Excise duty 1,124 3,005
Other expenses 34 13,116 17,071
Total expenses (IV) 53,804 62,552
V Profit/ (loss) before exceptional items and tax (III- IV) (24,447) 1,991
VI Exceptional items 35 25,149 -
VII Profit/ (loss) before tax (V-VI) (49,596) 1,991
VIII Tax expense:
(1) Current tax - 218
(2) Deferred tax (2,542) (393)
Total Tax Expense (VIII) (2,542) (175)
IX Profit/ (loss) for the year (VII-VIII) (47,054) 2,166
X Other Comprehensive Income/(loss)
Items that will not be reclassified to profit and loss
(i) Re-measurement gains/(losses) on defined benefit plans 4 94
(ii) Income tax effect on above - -
(iii) Equity instruments through other comprehensive income - -
(iv) Income tax effect on above - -
Total Other comprehensive income/(loss) 4 94
XI Total comprehensive Income/(loss) for the year (IX+X) (47,050) 2,260
(comprising profit and other comprehensive income for the year)
XII Earnings per equity share
(1) Basic (`) (7.18) 0.33
(2) Diluted (`) (7.18) 0.33
Significant Accouting Policies and 1-47
Notes to Standalone Ind AS Financial Statements

As per our report of even date attached For Ballarpur Industries Limited
aShWIn ManKeShWaR R. R. VeDeRah
Partner Vice Chairman
Membership No. 046219
B. haRIhaRan
For and on behalf of
Group Director (Finance)
K. K. ManKeShWaR & co.
Chartered Accountants BIMal KhanDelWal
FRN: 106009W Chief Financial Officer

New Delhi, dated the aKhIl MahaJan

23rd May, 2017 Company Secretary

Financials 49
ANNUAL REPORT 2016-17
caSh floW StateMent
FOr ThE FINaNcIaL
YEar ENDED March 31, 2017

` in Lacs
31sT March 2017 31sT March 2016

cash FLOW FrOM OPEraTING acTIVITIEs

Net Profit before tax (49,596) 1,991
Adjustments for:
(Profit) / Loss on sale of assets (net) (3,436) (2,786)
Depreciation & amortisation expenses 5,269 5,810
Impairment of assets 25,149 -
Bad Debts writeen off 564 -
Interest received (3) (10)
Dividends received - (1)
Finance costs (net) 15,319 5,193
42,862 8,206
Operating Profit before Working capital changes (6,734) 10,197
adjustment for Working capital changes :
(Increase)/decrease in trade receivable 454 4,106
(Increase)/decrease in loans, advances and other currrent assets (4,264) (35,845)
(Increase)/decrease in inventory (8,761) 886
Increase/(decrease) in liabilities and provisions (35,959) 2,252
(48,530) (28,601)
Cash generated from operations (55,264) (18,404)
Income tax refund/(paid) 2,009 (55)
Net cash flow from operating activities (a) (53,255) (18,459)

cash FLOW FrOM INVEsTING acTIVITIEs

Increase in fixed assets, capital work-in-progress and capital advances (1,557) (13,923)
Proceed from sale of property plant and equipment 4,615 3,057
Interest received 1,490 1,677
Investment in ZCCB - (25,157)
(Increase)/decrease in other bank balances 15 9
Dividend Income - 1
Net cash flow from investing activities (B) 4,563 (34,336)

cash FLOW FrOM FINaNcING acTIVITIEs

Increase/(decrease) in long-term borrowings 53,915 65,745
Payment for buy back (optional/convertible) (2) (4)
Interest paid (Net) (10,582) (6,482)
Dividend paid (13) (1,583)
Net cash flow from financing activities (c) 43,318 57,676
Net increase/(decrease) in cash and cash equivalents (a+B+c) (5,374) 4,881
cash and cash equivalents at the begining of reporting year 5,627 746
cash and cash equivalents (closing balance) 253 5,627
Significant Accounting Policies and Notes to Standalone Ind AS Financial State- 1-47
ments

As per our report of even date attached For Ballarpur Industries Limited
aShWIn ManKeShWaR R. R. VeDeRah
Partner Vice Chairman
Membership No. 046219
B. haRIhaRan
For and on behalf of
Group Director (Finance)
K. K. ManKeShWaR & co.
Chartered Accountants BIMal KhanDelWal
FRN: 106009W Chief Financial Officer

New Delhi, dated the aKhIl MahaJan

23rd May, 2017 Company Secretary

50 BALLARPUR INDUSTRIES LIMITED

ANNUAL REPORT 2016-17
 sTaTEMENT OF chaNGEs IN EQUITY FOr ThE YEar ENDED March 31, 2017
a. EQUITY sharE caPITaL
` in Lacs
Balance as at changes in Equity share Balance as at
01st april, 2015 capital during 2015-16 31st March, 2016
13,112 - 13,112

Balance as at changes in Equity share Balance as at

01st april, 2016 capital during 2016-17 31st March, 2017
13,112 - 13,112
B. OThEr EQUITY
` in Lacs
Particulars reserves and surplus Other comprehensive Total
Income
capital securities Preference Debenture General retained Items that will not be
reserve Premium share capital redemption reserve Earnings reclassified to profit
redemption reserve and loss
reserve re-measurement of
the net defined benefit
Plans
Balance as at April 1, 2015 1,515 27,607 7,385 5,000 80,809 32,425 (948) 153,793
Transfer from Debenture Redemption Reserve (1,250) 1,250 -
Profit / (Loss) for the year 2,166 94 2,260
Others (Refer Note 19(e) (1,578) (1,578)
Balance as at March 31, 2016 1,515 27,607 7,385 3,750 80,809 34,263 (854) 154,475
Profit / (Loss) for the year (47,054) 4 (47,051)
Others (Refer Note 19(e) 1,877 1,877
Balance as at March 31, 2017 1,515 27,607 7,385 3,750 80,809 (10,914) (850) 109,302
Significant Accouting Policies and Notes to Standalone Ind AS Financial Statements 1-47

As per our report of even date attached For Ballarpur Industries Limited
aShWIn ManKeShWaR R. R. VeDeRah
Partner Vice Chairman
Membership No. 046219
B. haRIhaRan
For and on behalf of
Group Director (Finance)
K. K. ManKeShWaR & co.
Chartered Accountants BIMal KhanDelWal
FRN: 106009W Chief Financial Officer

Financials
ANNUAL REPORT 2016-17
New Delhi, dated the aKhIl MahaJan
23rd May, 2017 Company Secretary

51
SIgnIfIcant accountIng PolIcIeS anD noteS to fInancIal StateMentS
1 cOMPaNY OVErVIEW
Ballarpur Industries Limited (“BILT” or the company) is in the business of manufacturing and selling of Paper, pulp and paper products
and its manufacturing operations are spread over two units namely Kamlapuram (Telangana) and Shreegopal (Haryana).
The financial statements were authorised for issue in accordance with a resolution of the directors on 23rd May, 2017.
2 BasIs OF PrEParaTION aND UsE OF EsTIMaTEs
2.1 BasIs OF PrEParaTION OF FINaNcIaL sTaTEMENTs
The Financial statements (FS) of the company have been prepared in accordance with Indian Accounting Standards (Ind AS) notified under
the Companies (Indian Accounting Standards) Rules, 2015 (as amended) and presentation requirements of Division II of Schedule III to the
Companies Act, 2013, (Ind AS compliant Schedule III), as applicable to the Financial statements.
For all periods up to and including the year ended 31st March 2016, the Company prepared its financial statements in accordance with
Indian GAAP, including accounting standards notified under the section 133 of the Companies Act 2013, read together with paragraph 7
of the Companies (Accounts) Rules, 2014. These financial statements for the year ended 31st March 2017 are the first the Company has
prepared in accordance with Ind-AS.
The Company has consistently applied the accounting policies used in the preparation of its opening IND-AS Balance Sheet at April 1,
2015 throughout all periods presented, as if these policies had always been in effect and are covered by IND AS 101 ‘’First-time adoption
of Indian Accounting Standards’’. The transition was carried out from accounting principles generally accepted in India (‘’Indian GAAP’’)
which is considered as the previous GAAP, as defined in IND AS 101. The reconciliation of effects of the transition from Indian GAAP on
the equity as at April 1, 2015 and March 31, 2016 and on the net profit and cash flows for the year ended March 31, 2016 is disclosed in
Note No 46 to these financial statements.
The Financial statements have been prepared on a historical cost basis, except for the following assets and liabilities which have been
measured at fair value:
• Land and buildings classified as property, plant and equipment;
• Derivative financial instruments;
• Certain financial assets and liabilities measured at fair value (refer accounting policy regarding financial instruments).
2.2 UsE OF EsTIMaTEs
The preparation of Financial Statements requires estimates and assumptions to be made that affect the reported amount of assets and
liabilities as at the date of the Financial Statements and the reported amount of revenues and expenses during the reporting period/year.
The difference between the actual results and estimates are recognised in the year in which the results are known/materialise.
All Assets and liabilities have been classified as current or non-current as per the Company’s normal operating cycle and other criteria
set out in the schedule III to the Companies Act, 2013. Based on the nature of products and the time between the acquisition of assets
for processing and their realisation in cash and cash equivalent, the Company has ascertained its operating cycle as 12 months for the
purpose of current/non-current classification of assets and liabilities
3 sIGNIFIcaNT accOUNTING POLIcIEs
3.1 cUrrENT VErsUs NON-cUrrENT cLassIFIcaTION
The Company presents assets and liabilities in the balance sheet based on current/ non-current classification. An asset is classified as
current when it is:
• Expected to be realised or intended to sold or consumed in normal operating cycle
• Held primarily for the purpose of trading
• Expected to be realised within twelve months after the reporting period, or
• Cash or cash equivalent unless restricted from being exchanged or used to settle a liability for at least twelve months after the
reporting period
All other assets are classified as non-current.
A liability is current when:
• It is expected to be settled in normal operating cycle
• It is held primarily for the purpose of trading
• It is due to be settled within twelve months after the reporting period, or
• There is no unconditional right to defer the settlement of the liability for at least twelve months after the reporting period
The Company classifies all other liabilities as non-current. Deferred tax assets and liabilities are classified as non-current assets and
liabilities.

52 BALLARPUR INDUSTRIES LIMITED

ANNUAL REPORT 2016-17
SIgnIfIcant accountIng PolIcIeS anD noteS to fInancIal StateMentS
3.2 FaIr VaLUE MEasUrEMENT
Fair value is the price that would be received to sell an asset or settle a liability in an ordinary transaction between market participants
at the measurement date. The fair value of an asset or a liability is measured using the assumption that market participants would use
when pricing an asset or liability acting in their best economic interest. The fair value of plants and equipments as at transition date
have been taken based on valuation performed by an independent technical expert. The Company used valuation techniques, which were
appropriate in circumstances and for which sufficient data were available considering the expected loss/ profit in case of financial assets
or liabilities.
3.3 PrOPErTY, PLaNT aND EQUIPMENT
On transition to IND AS, the Company has adopted optional exception under IND AS 101 to measure Property, Plant and Equipment at
fair value. Consequently the fair value has been assumed to be deemed cost of Property, Plant and Equipment on the date of transition.
Subsequently, Property, Plant and Equipment, other than land, are carried at cost less accumulated depreciation and accumulated
impairment losses, if any. In case of land, it shall be carried at revalued amount, being its fair value at the date of revaluation less any
subsequent accumulated depreciation and subsequent accumulated impairment losses if any.
Subsequent costs are included in the asset's carrying amount or recognised as a separate asset, as appropriate, only when it is probable
that future economic benefits associated with the item will flow to the Company and the cost of the item can be measured reliably. The
carrying amount of the replaced part is derecognised. All other repairs and maintenance are charged to the income statement during the
financial period in which they are incurred.
Depreciation
Assets are depreciated to the residual values on a straight line basis over the estimated useful lives based on technical estimates which
are different from one specified in Schedule II of the Companies Act, 2013. Asset's depreciation methods, residual values and useful lives
are reviewed at each financial year end considering the physical condition of the assets and benchmarking analysis or whenever there are
indicators for review of residual value and useful life. Freehold land is not depreciated. Estimated useful lives of the assets are as follows:

categories of assets Estimated useful life in years

Factory Building 30
Office Buildings 40
Plant & Machinery
Plant and Machinery 1-40
Equipments 1-15
Other equipment, operating and office equipment
Computer equipment 1-6
Office furniture and equipment 1-20
Vehicles 1-10
Railway Siding 3-15
It is believed that the useful lives as given above represents the period over which management expects to use these assets.
The gain or loss arising on the disposal or retirement of an item of property, plant and equipment is determined as the difference between
the sales proceeds and the carrying amount of the asset and is recognised in the Statement of Profit and Loss on the date of disposal or
retirement.
Capital work-in-progress includes cost of property, plant and equipment under installation / under development as at the balance sheet
date.
Intangible Asset under development includes cost of development of new intangible assets to complete the assets as at the balance sheet
date.
Capital Expenditure on tangible assets for research and development is classified under property, plant and equipment and is depreciated
on the same basis as other property, plant and equipment.
3.4 INTaNGIBLE assETs
Intangible assets that are acquired by the Company, which have finite useful lives, are measured at cost less accumulated amortization
and accumulated impairment losses (if any). Costs include expenditure that is directly attributable to the acquisition of the intangible
assets.
(i) subsequent Expenditure
Subsequent expenditure is capitalized only when it increases the future economic benefits embodied in the specific asset to which
it relates. All other expenditure, including expenditure on internally generated goodwill and brands, are recognized in profit or loss
as incurred.

Financials 53
ANNUAL REPORT 2016-17
SIgnIfIcant accountIng PolIcIeS anD noteS to fInancIal StateMentS
(ii) amortization of intangible assets with finite useful lives
Amortization is recognized in profit or loss on a straight-line basis over the estimated useful lives of intangible assets from the date
that they are available for use. Expenditure on specialised software are amortised over seven years.
3.5 rEsEarch & DEVELOPMENT cOsT
Research costs are expensed as incurred. Development expenditures on an individual project are recognised as an intangible asset when
the Company can demonstrate:
• The technical feasibility of completing the intangible asset so that the asset will be available for use or sale;
• Its intention to complete and its ability and intention to use or sell the asset;
• there is an ability to use or sell the asset;
• How the asset will generate future economic benefits;
• adequate technical, financial and other resources to complete the asset
• The ability to measure reliably the expenditure during development;
Following initial recognition of the development expenditure as an asset, the asset is carried at cost less any accumulated amortisation
and accumulated impairment losses (if any). Amortisation of the asset begins when development is complete and the asset is available
for use. It is amortised over the period of expected future benefit. Amortisation expense is recognised in the statement of profit and loss.
During the period of development, the asset is tested for impairment annually.
3.6 IMPaIrMENT OF NON-FINaNcIaL assETs
Assets that have an indefinite useful life, for example goodwill, are not subject to amortisation and are tested annually for impairment and
additionally whenever there is a triggering event for impairment. Assets that are subject to amortisation and depreciation are reviewed
for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. An impairment
loss is recognised for the amount by which the asset’s carrying amount of cash generating units exceeds its recoverable amount. The
recoverable amount of a cash generating unit is the higher of cash generating unit’s fair value less cost of disposal and its value in use.
3.7 INVENTOrIEs
Inventories are valued at the lower of cost or net realisable value.
Costs incurred in bringing each product to its present location and condition is accounted for as follows:
• Raw materials, Stores, Spare Parts, Chemicals: are valued at cost, computed on weighted average basis.
• Finished goods and work in progress: are valued at cost or net realisable value, whichever is lower. In the case of finished goods
and work in process cost comprises of material, direct labour and applicable overhead expenses. The cost of finished goods also
includes applicable excise duty.
• Traded goods: cost includes cost of purchase and other costs incurred in bringing the inventories to their present location and
condition. Cost is determined on weighted average basis.
Net realisable value is the estimated selling price in the ordinary course of business, less estimated costs of completion and the estimated
costs necessary to make the sale.
3.8 FOrEIGN cUrrENcIEs
The Company’s financial statements are presented in INR, which is functional currency of the Company.
Transactions and balances
Transactions in foreign currencies are initially recorded by the Company’s at their respective functional currency spot rates at the date
the transaction first qualifies for recognition.
Monetary assets and liabilities denominated in foreign currencies are translated at the functional currency spot rates of exchange at the
reporting date.
Differences arising on settlement or translation of monetary items are recognised in profit or loss.
The Company has availed the exemption available in IND AS 101, to continue capitalisation of foreign currency fluctuation on long term
foreign currency monetary liabilities outstanding on transition date.
3.9 FINaNcIaL INsTrUMENTs – INITIaL rEcOGNITION, sUBsEQUENT MEasUrEMENT aND IMPaIrMENT
A financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability or equity instrument of
another entity.

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FINaNcIaL assETs
(i) Initial recognition and measurement:
All financial assets are recognised initially at fair value and, in the case of financial assets not recorded at fair value through profit
or loss, transaction costs that are attributable to the acquisition of the financial asset.
(ii) subsequent measurement
For purposes of subsequent measurement financial assets are classified in two broad categories:
: Financial assets at fair value
: Financial assets at amortised cost
(iii) classification:
The Company classifies financial assets as subsequently measured at amortised cost, fair value through other comprehensive
income or fair value through profit or loss on the basis of its business model for managing the financial assets and the contractual
cash flows characteristics of the financial asset.
(iv) Financial assets measured at amortised cost:
Financial assets are measured at amortised cost when asset is held within a business model, whose objective is to hold assets for
collecting contractual cash flows and contractual terms of the asset give rise on specified dates to cash flows that are solely for
payments of principal and interest. Such financial assets are subsequently measured at amortised cost using the effective interest
rate (EIR) method. The losses arising from impairment are recognised in the Statement of profit and loss. This category generally
applies to trade and other receivables.
(v) Financial assets measured at fair value through other comprehensive income (FVTOcI):
Financial assets under this category are measured initially as well as at each reporting date at fair value. Fair value movements are
recognized in the other comprehensive income.
(vi) Financial assets measured at fair value through profit or loss (FVTPL):
Financial assets under this category are measured initially as well as at each reporting date at fair value with all changes recognised
in profit or loss.
(vii) Investment in subsidiary and associates:
Investment in equity instruments of Subsidiaries and Associates are measured at cost. Provision for Impairment loss on such
investment is made only when there is a diminution in value of the investment which is other than temporary.
(viii) Investment in Equity Instruments:
Equity instruments which are held for trading are classified as at FVTPL. All other equity instruments are classified as FVTOCI. Fair
value changes on the instrument, excluding dividends, are recognized in the other comprehensive income. There is no recycling of
the amounts from other comprehensive income to profit or loss.
(ix) Investment in Debt Instruments:
A debt instrument is measured at amortised cost or at FVTPL. Any debt instrument, which does not meet the criteria for categorization
as at amortised cost or as FVOCI, is classified as at FVTPL. Debt instruments included within the FVTPL category are measured at
fair value with all changes recognised in the Statement of profit and loss.
(x) Derecognition of Financial assets:
A financial asset is primarily derecognised when the rights to receive cash flows from the asset have expired or the Company has
transferred its rights to receive cash flows from the asset, if an entity transfers a financial asset in a transfer that qualifies for
derecognition in its entirety and retains the right to service the financial asset for a fee, it shall recognise either a servicing asset
or a servicing liability for that servicing contract. If the fee to be received is not expected to compensate the entity adequately for
performing the servicing, a servicing liability for the servicing obligation shall be recognised at its fair value. If the fee to be received
is expected to be more than adequate compensation for the servicing, a servicing asset shall be recognised for the servicing right
at an amount determined on the basis of an allocation of the carrying amount of the larger financial asset.
(xi) Impairment of Financial assets:
In accordance with Ind AS 109, the Company applies expected credit loss (ECL) model for measurement and recognition of
impairment loss on the financial assets that are debt instruments and trade receivables. For recognition of impairment loss on
other financial assets and risk exposure, the Company determines that whether there has been a significant increase in the credit
risk since initial recognition.

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FINaNcIaL LIaBILITIEs
(i) Initial recognition and measurement:
All financial liabilities are recognised initially at fair value and, in the case of loans, borrowings and payables, net of directly
attributable transaction costs. Financial liabilities include trade and other payables, loans and borrowings including bank overdrafts
and derivative financial instruments.
(ii) classification & subsequent measurement:
If a financial instrument that was previously recognised as a financial asset is measured at fair value through profit or loss and its
fair value decreases below zero, it is a financial liability measured in accordance with IND AS. Financial liabilities are classified as
held for trading, if they are incurred for the purpose of repurchasing in the near term. This category also includes derivative financial
instruments that are not designated as hedging instruments in hedge relationships as defined by Ind AS 109. Separated embedded
derivatives are also classified as held for trading unless they are designated as effective hedging instruments.
The Company classifies all financial liabilities as subsequently measured at amortised cost, except for financial liabilities at fair
value through profit or loss. Such liabilities, including derivatives that are liabilities, shall be subsequently measured at fair value.
(iii) Loans and Borrowings:
Interest-bearing loans and borrowings are subsequently measured at amortised cost using the Effective Interest Rate (EIR) method.
Gains and losses are recognised in profit or loss when the liabilities are derecognised as well as through EIR amortisation process.
Amortised cost is calculated by taking into account any discount or premium on acquisition and fees or costs that are an integral
part of the EIR. The EIR amortisation is included as finance costs in the statement of profit and loss. After initial recognition Gain
and Liabilities held for Trading are recognised in statement of profit and Loss Account.
(iv) Derecognition of Financial Liabilities:
A financial liability is derecognised when the obligation under the liability is discharged or cancelled or expires. When an existing
financial liability is replaced by another from the same lender on substantially different terms, or the terms of an existing liability are
substantially modified, such an exchange or modification is treated as the derecognition of the original liability and the recognition
of a new liability. The difference in the respective carrying amounts is recognised in the Statement of Profit and Loss.
(v) Derivative Financial Instrument:
The Company uses derivative financial instruments, such as interest rate swaps, to hedge its interest rate risks. Such derivative
financial instruments are initially recognised at fair value on the date on which a derivative contract is entered into and are
subsequently remeasured at fair value. Derivatives are carried as financial assets when the fair value is positive and as financial
liabilities when the fair value is negative.
Offsetting financial instruments:
Financial assets and liabilities are offset and the net amount reported in the balance sheet when there is a legally enforceable right to
offset the recognised amounts and there is an intention to settle on a net basis to realise the asset and settle the liability simultaneously.
Subsequent recoveries of amounts previously written off are credited to Other Income.
3.10 cOMPOUND FINaNcIaL INsTrUMENTs
The liability component of a compound financial instrument is recognised initially at fair value of a similar liability that does not have
an equity component. The equity component is recognised initially at the difference between the fair value of the compound financial
instrument as a whole and the fair value of the liability component. Any directly attributable transaction costs are allocated to the liability
and the equity components, if material, in proportion to their initial carrying amounts.
Subsequent to the initial recognition, the liability component of a compound financial instrument is measured at amortised cost using the
effective interest method. The equity component of a compound financial instrument is not re-measured subsequent to initial recognition
except on conversion or expiry.
3.11 cash aND cash EQUIVaLENTs
Cash and cash equivalents in the balance sheet comprise cash on hand and at bank, deposits held at call with banks, other short-term
highly liquid investments with original maturities of three months or less that are readily convertible to a known amount of cash and are
subject to an insignificant risk of changes in value and are held for the purpose of meeting short-term cash commitments.
For the purpose of the statement of cash flows, cash and cash equivalents consist of cash and short-term deposits, as defined above, net
of outstanding bank overdrafts as they are considered an integral part of the Company’s cash management.
3.12 PrOVIsIONs, cONTINGENT LIaBILITIEs, cONTINGENT assETs aND cOMMITMENTs
(i) General
Provisions are recognised when the Company has a present obligation (legal or constructive) as a result of a past event, it is
probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate
can be made of the amount of the obligation. If the effect of the time value of money is material, the amount of a provision shall be

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the present value of expense expected to be required to settle the obligation Provisions are therefore discounted, when effect is
material, The discount rate shall be pre-tax rate that reflects current market assessment of time value of money and risk specific to
the liability. Unwinding of the discount is recognised in the Statement of Profit and Loss as a finance cost. Provisions are reviewed
at each balance sheet date and are adjusted to reflect the current best estimate.
(ii) contingencies
Contingent liabilities are disclosed when there is a possible obligation arising from past events, the existence of which will be
confirmed only by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the
Company or a present obligation that arises from past events where it is either not probable that an outflow of resources will be
required to settle or a reliable estimate of the amount cannot be made. Information on contingent liability is disclosed in the Notes
to the Financial Statements.
A contingent asset is a possible asset that arises from past events and whose existence will be confirmed only by the occurrence
or non-occurrence of one or more uncertain future events not wholly within the control of the entity, Contingent assets are not
recognised, but are disclosed in the notes. However, when the realisation of income is virtually certain, then the related asset is no
longer a contingent asset, but it is recognised as an asset.
3.13 sharE caPITaL aND sharE PrEMIUM
Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of new shares are shown in equity as a
deduction, net of tax, from the proceeds.
Par value of the equity share is recorded as share capital and the amount received in excess of the par value is classified as share
premium.
3.14 BOrrOWING cOsTs
Borrowing costs specifically relating to the acquisition, construction or production of qualifying assets that necessarily takes a substantial
period of time to get ready for its intended use are capitalized (net of income on temporarily deployment of funds) as part of the cost of
such assets. Borrowing costs consist of interest and other costs that the Company incurs in connection with the borrowing of funds.
For general borrowing used for the purpose of obtaining a qualifying asset, the amount of borrowing costs eligible for capitalization
is determined by applying a capitalization rate to the expenditures on that asset. The capitalization rate is the weighted average of the
borrowing costs applicable to the borrowings of the Company that are outstanding during the period, other than borrowings made
specifically for the purpose of obtaining a qualifying asset. The amount of borrowing costs capitalized during a period does not exceed the
amount of borrowing cost incurred during that period.
All other borrowing costs are expensed in the period in which they are incurred.
3.15 rEVENUE rEcOGNITION
(i) sale of goods
Revenue from the sale of goods is recognised, when the significant risks and rewards of ownership of the goods have passed to
the buyer, as per the terms of Company and no significant uncertainty exists regarding the amount of consideration that will be
derived from the sale of goods, usually on delivery of the goods. Revenue is recognized at the fair value of consideration received
or receivable, net of returns and allowances trade discounts, volume rebates and outgoing sales tax and are recognized either on
delivery or on transfer of significant risk and rewards of ownership of the goods. Revenue is inclusive of excise duty.
(ii) Other operating income
(a) Incentives
Incentives on exports and other Government incentives related to operations are recognised in books after due consideration
of certainty of utilization/receipt of such incentives.
Export incentives are recognised at the time of export when the Company will have certainly to comply with all attached
conditions.
(b) rental Income
Rental income is accrued on a time proportion basis by reference to the agreements entered into.
(iii) Other Income
(a) Interest income
Interest income is recognised on a time proportion basis using the effective interest method. When a receivable is impaired,
the Company reduces the carrying amount to its recoverable amount, being the estimated future cash flows discounted at the
original effective interest rate of the instrument and continues unwinding the discount as interest income. Interest income on
impaired loans is recognised using the original effective interest rate.
(b) Dividends
Dividend is recognised when the Company’s right to receive the payment is established, which is generally when shareholders
approve the dividend.

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3.16 EMPLOYEE BENEFITs
(i) short term employee benefits:
Short term employee benefits are expensed as & when the related service is provided. A liability is recognized for the amount
expected to be paid if the Company has a present legal or constructive obligation to pay this amount as a result of past service
provided by the employee and the obligation can be estimated reliably
(ii) Defined benefit plans:
The Company’s net obligation in respect of defined benefit plans is calculated separately for each plan by estimating the amount of
future benefit that employees have earned in the current and prior periods, discounting that amount and deducting the fair value
of any plan assets. The calculation of defined benefit obligations is performed annually by a qualified actuary using the projected
unit credit method. When the calculation results in a potential asset for the Company and its subsidiaries, the recognized asset is
limited to the present value of economic benefits available in the form of any future refunds from the plan or reductions in future
contributions to the plan. To calculate the present value of economic benefits, consideration is given to any applicable minimum
funding requirements. Remeasurement of the net defined benefit liability, which comprises actuarial gains and losses, the return
on plan assets (excluding interest) and the effect of the asset ceiling (if any, excluding interest), are recognized immediately in Other
comprehensive income. Net interest expense/(income) on the net defined liability/(assets) is computed by applying the discount
rate, used to measure the net defined liability/(asset), the start of the financial year after taking into account any changes as a result
of contribution and benefit payments during the year. Net interest expense and other expenses related to defined benefit plans are
recognised in Statement of Profit and Loss.
(iii) Long-term employee benefits:
The Company’s net obligation in respect of long - term employee benefits is the amount of future benefit that employees have
earned in return for their service in the current and prior periods. That benefit is discounted to determine its present value.
Remeasurement is recognised in Statement of Profit and Loss in the period in which they arise.
(iv) Post - employment benefits - Defined contribution plans:
The Company’s contributions to defined contribution plans are charged to the income statement in the period to which they relate.
Once the contributions have been paid, the Company has no further payment obligations. Prepaid contributions are recognised as
an asset to the extent that a cash refund or a reduction in the future payments is available.
(v) Termination benefits
Termination benefits are employee benefits provided in exchange for the termination of an employee’s employment as a result of
either:
(a) an entity’s decision to terminate an employee’s employment before the normal retirement date; or
(b) an employee’s decision to accept an offer of benefits in exchange for the termination of employment.
3.17 LEasEs
(i) Lease payments:
Payments made under operating leases are recognized in Statement of Profit and Loss. Lease incentives received are recognized
as an integral part of the total lease expense, over the term of the lease. Minimum lease payments made under finance leases are
apportioned between the finance expense and the reduction of the outstanding liability. The finance expense is allocated to each
period during the lease term so as to produce a constant periodic rate of interest on the remaining balance of the liability.
(ii) Lease assets:
A lease is an agreement whereby the lessor conveys to the lessee in return for a payment or series of payments the right to use an
asset for an agreed period of time.
A finance lease is a lease that transfers substantially all the risks and rewards incidental to ownership of an asset. Title may or may
not eventually be transferred. The leased assets are measured initially at an amount equal to the lower of their fair value and the
present value of the minimum lease payments. Subsequent to initial recognition, the assets are accounted for in accordance with
the accounting policy applicable to that asset.
3.18 TaXEs
(i) Income tax
Income tax expense comprises current and deferred tax. It is recognised in statement of profit and loss except to the extent that it
relates to a business combination, or items recognised directly in equity or in other comprehensive income.
Management periodically evaluates positions taken in the tax returns with respect to situations in which applicable tax regulations
are subject to interpretation and establishes provisions where appropriate.

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Current tax assets and liabilities are offset only if, the Company:
• has a legally enforceable right to set off the recognised amounts; and
• Intends either to settle on a net basis, or to realise the asset and settle the liability simultaneously.
(ii) Deferred tax
Deferred tax is recognized for the future tax consequences of deductable temporary differences between the carrying values
of assets and liabilities and their respective tax bases at the reporting date, using the tax rates and laws that are enacted or
substantively enacted as on reporting date. Deferred tax assets are recognized to the extent that it is probable that future taxable
income will be available against which the deductible temporary differences, unused tax losses and credits can be utilised. Deferred
tax relating to items recognised in other comprehensive income and directly in equity is recognised in correlation to the underlying
transaction.
Deferred tax assets and liabilities are offset only if:
• entity has a legally enforceable right to set off current tax assets against current tax liabilities; and
• deferred tax assets and the deferred tax liabilities relate to the income taxes levied by the same taxation authority.
3.19 DIVIDEND/DIsTrIBUTION
Dividend distribution to the Company’s shareholders is recognised as a liability in the financial statements in the period in which the
dividends are approved by the Company’s shareholders.
3.20 EarNING PEr sharE
As per Ind AS 33, Earning Per Share, Basic earnings per share are computed by dividing the net profit for the year attributable to the
shareholders’ and weighted average number of shares outstanding during the year. The weighted average numbers of shares also
includes fixed number of equity shares that are issuable on conversion of compulsorily convertible preference shares, debentures or any
other instrument, from the date consideration is receivable (generally the date of their issue) of such instruments.
Diluted earnings per share is computed using the net profit for the year attributable to the shareholder’ and weighted average number
of equity and potential equity shares outstanding during the year including share options, convertible preference shares and debentures,
except where the result would be anti-dilutive. Potential equity shares that are converted during the year are included in the calculation
of diluted earnings per share, from the beginning of the year or date of issuance of such potential equity shares, to the date of conversion.
4 critical accounting estimates, assumptions and judgements
In the process of applying the Company's accounting policies, management has made the following estimates, assumptions and
judgements, which have significant effect on the amounts recognised in the financial statement:
(a) Property, plant and equipment
On transition to Ind AS, the Company has adopted optional exemption under IND AS 101 for fair valuation of property, plant and
equipment. The Company appointed external adviser to assess the fair value, remaining useful lives and residual value of property,
plant and equipment. Management believes that the assigned fair value, useful lives and residual value are reasonable.
(b) Impairment of tangible assets
As per Ind AS 36, Impairment of Assets, company shall assess at the end of each reporting period whether there is any indication
that an asset may be impaired. If any such indication exists, the entity shall estimate the recoverable amount of the asset.
As Kamalapuram unit is not in operation for almost 36 months, management appointed an external valuer to determine the
impairment amount, if any. The recoverable amount of the unit was determined based on calculations of net selling price as the
respective unit is not in operation.
(c) Income taxes
Management judgment 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.
(d) contingencies
Management judgement 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.
(e) allowance for uncollectable 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 to be collectible. Impairment
is made on the expected credit losses, which are the present value of the cash shortfall over the expected life of the financial assets.

Financials 59
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60
noteS to the fInancIal StateMentS

5. PrOPErTY, PLaNT aND EQUIPMENTs

` in Lacs
Particulars Leasehold Freehold Buildings Plant and Furniture Vehicles Office computers railway Total
Land Land Equipment and Fixtures Equipments sidings,
Trolley Lines,
Tramway &
tipping tups

ANNUAL REPORT 2016-17

Cost:
As at April 1, 2015 9 112,688 33,888 167,579 1,563 415 683 12 62 316,899
Additions - - - 140 2 1 - - - 143
Disposal - 65 280 1,793 5 61 1 0 - 2,205

BALLARPUR INDUSTRIES LIMITED

as at March 31, 2016 9 112,623 33,608 165,926 1,560 355 682 12 62 314,837
Additions - - - 140 - - - - - 140
Disposal - 21 829 25 512 - 582 - - 1,969
Impairment / Adjustments - - 155 19,934 3 3 4 1 - 20,100
as at March 31, 2017 9 112,602 32,624 146,107 1,045 352 96 11 62 292,908
accumulated Depreciation
As at April 1, 2015 1 - 4,983 47,056 1,037 145 199 9 30 53,460
Depreciation Charge for the Year 0 - 338 4,502 34 89 35 1 4 5,003
Disposal - - 125 1,780 3 37 0 0 - 1,945
as at March 31, 2016 1 - 5,196 49,778 1,068 197 234 10 34 56,518
Depreciation Charge for the Year 0 - 339 3,227 24 41 7 0 4 3,642
Disposal - - 495 13 133 - 149 - - 790
as at March 31, 2017 1 - 5,040 52,992 959 238 92 10 38 59,370
Net Carrying Value
As at April 1, 2015 8 112,688 28,905 120,523 526 270 484 3 32 263,439
As at March 31, 2016 8 112,623 28,412 116,148 492 158 448 2 28 258,319
as at March 31, 2017 8 112,602 27,584 93,115 86 114 4 1 24 233,538
Note: "0"represent amount below Rs. 50,000/-
noteS to the fInancIal StateMentS as aT March 31, 2017

` in Lacs

6. caPITaL WOrk IN PrOGrEss

ParTIcULars as at as at
31st March-2017 31st March-2016
Opening net carrying value 26,711 16,041
Additions 1,934 12,591
Transferred to Property, Plant & Equipment 140 141
Disposals 393 1,780
closing net carrying value 28,112 26,711

7. INTaNGIBLE assETs
ParTIcULars as at 31st March-2017 as at 31st March-2016
Product Others Total Product Others Total
Development Development
Expense Expense
Opening net carrying value 2,707 2,271 4,978 3,401 2,384 5,785
Additions - - - - - -
Amortization charge during the year 694 933 1,627 694 113 807
closing carrying Value 2,013 1,338 3,351 2,707 2,271 4,978

8. INTaNGIBLE assETs UNDEr DEVELOPMENT

ParTIcULars as at as at
31st March-2017 31st March-2016
Opening net carrying value 3,144 -
Additions - 3,144
Disposals - -
closing net carrying value 3,144 3,144

9 NON cUrrENT INVEsTMENTs

Particulars as at 31st March-2017 as at 31st March-2016 as at 1st april-2015
Numbers amount Numbers amount Numbers amount
Unquoted, Non-trade investments:
Investments Measured at cost
I) In equity shares of subsidiary company:
Unquoted, Non-trade investments:
a) Bilt Tree Tech Limited 990,000 40 990,000 40 990,000 40
b) Ballarpur International Holdings B.V. 168,679,093 76,048 168,679,093 76,048 168,679,093 76,048
c) BILT Graphic Paper Products Limited 50,000 5 50,000 5 50,000 5
d) Ballarpur Speciality Paper Holdings B.V. 18,000 12 18,000 12 18,000 12
e) Premier Tissues (India) Limited 5,620,427 4,522 5,620,427 4,522 5,620,427 4,522
f) Ballarpur International Holdings B.V. 141 25,157 141 25,157 - -
Total Investments Measured at cost 175,357,661 105,784 175,357,661 105,784 175,357,520 80,627
Investments Measured at Fair Value through OcI
II) In equity shares of Other companies:
a) Blue Horizon Investments Limited 5,000 3 5,000 3 5,000 3
b) Avantha Power & Infrastructure Limited 8,654,186 748 8,654,186 748 8,654,186 748
Total Investments Measured at Fair Value 8,659,186 751 8,659,186 751 8,659,186 751
through OcI
Note: 141 Zero Coupon Convertiable Notes {ZCCN} of $ 65789.5 of Premium $ 214912.25 was purchased during the previous year.

Financials 61
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` in Lacs

9.1 aGGrEGaTE aMOUNT OF NON cUrrENT INVEsTMENTs

Particulars as at 31st March-2017 as at 31st March-2016 as at 1st april-2015
Numbers amount Numbers amount Numbers amount
Quoted Investments - - - - - -
Unquoted Investments 184,016,847 106,535 184,016,847 106,535 184,016,706 81,378
Total 184,016,847 106,535 184,016,847 106,535 184,016,706 81,378

9.2 caTEGOrY-WIsE NON cUrrENT INVEsTMENTs

Particulars as at 31st March-2017 as at 31st March-2016 as at 1st april-2015
Numbers amount Numbers amount Numbers amount
Investments Measured at Cost 175,357,661 105,784 175,357,661 105,784 175,357,520 80,627
Investments Measured at Fair Value through OCI 8,659,186 751 8,659,186 751 8,659,186 751
Total 184,016,847 106,535 184,016,847 106,535 184,016,706 81,378

10 OThEr NON cUrrENT FINaNcIaL assETs

Particulars as at as at as at
31st March-2017 31st March-2016 1st april-2015
Unsecured, considered good
Security Deposits 171 223 350
Total 171 223 350

11 OThEr NON cUrrENT assETs

Particulars as at as at as at
31st March-2017 31st March-2016 1st april-2015
Unsecured, considered good
(a) Capital advances 27 27 39
(b) Prepaid expenses 1 2 7
Total 28 29 46

12 INVENTOrIEs
Particulars as at as at as at
31st March-2017 31st March-2016 1st april-2015
Raw materials 2,201 1,640 5,245
Work in progress 123 359 1,890
Finished goods 17 2,419 8,033
Stores and spares 20,075 16,240 5,570
Chemicals 8,809 6,478 7,177
Packing material 1,243 1,342 1,448
Total 32,468 28,478 29,363
18.1) Includes stores & spares-in-transit of ` 11 Lacs (Previous Year As At 31 March, 2016 ` 8 Lacs & As At 01 April 2015 ` 5 Lacs)
18.2) Includes Chemicals-in-transit of ` 18 Lacs (Previous Year As At 31 March, 2016 ` 23 Lacs & As At 01 April 2015 ` 299 Lacs)
18.3) Includes Packing Material-in-transit of ` 11 Lacs (Previous Year As At 31 March, 2016 Nil & As At 01 April 2015 ` 36 Lacs)

13 TraDE rEcEIVaBLEs
Particulars as at as at as at
31st March-2017 31st March-2016 1st april-2015
Secured, Considered good:-
- Due from others (more than 6 months) - - -
- Due from others (less than 6 months) 62 218 503
Total secured 62 218 503
Unsecured, Considered good
- Due from related parties - - 540
- Due from others (more than 6 months) 192 41 133
- Due from others (less than 6 months) 283 1,296 4,487
Total Unsecured 475 1,337 5,160
Total 537 1,555 5,663

62 BALLARPUR INDUSTRIES LIMITED

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` in Lacs

14 cash aND cash EQUIVaLENTs

Particulars as at as at as at
31st March-2017 31st March-2016 1st april-2015
Balances with Banks :
- On current accounts 190 5,558 679
Fixed deposits with original maturity of less than three months 59 59 59
Cash on hand 4 10 8
Total cash and cash equivalents 253 5,627 746

15 OThEr BaNk BaLaNcEs

Particulars as at as at as at
31st March-2017 31st March-2016 1st april-2015
Bank Balances-Unpaid Dividend Account 67 80 85
Bank Balances-Unclaimed Compulsory /Optional Buy Back Consideration 179 180 185
Accounts
Total 246 260 270

16 LOaNs
Particulars as at as at as at
31st March-2017 31st March-2016 1st april-2015
Unsecured, considered good :-
(a) Loans to related parties 50,353 44,901 10,809
(b) Loans to others 2,411 3,871 2,798
Total 52,764 48,772 13,607

17 OThEr FINaNcIaL assETs

Particulars as at as at as at
31st March-2017 31st March-2016 1st april-2015"
Advances to Others 25 31 40
Security Deposit - Considered Good 850 740 744
Total 875 771 784

18 OThEr cUrrENT assETs

Particulars as at as at as at
31st March-2017 31st March-2016 1st april-2015
Prepaid expenses 668 586 61
Advances to employees 190 174 339
Advances to related parties - 8 8
Advances to trade creditors 5,043 5,117 4,382
Balance with govt authorities* 398 473 755
Other assets - 1 1
Total 6,299 6,359 5,546
* Pledged with banks, government departments and others.

19 EQUITY sharE caPITaL :

Particulars as at as at as at
31st March-2017 31st March-2016 1st april-2015
authorised
750,000,000 (March 31, 2016: 750,000,000, March 31, 2015: 750,000,000) 15,000 15,000 15,000
Equity shares of ` 2/- each
25,000,000 (March 31, 2016: 25,000,000, March 31, 2015: 25,000,000) 25,000 25,000 25,000
Preference shares of ` 100/- each
40,000 40,000 40,000
Issued capital
655,773,584 (March 31, 2016: 655,773,584, March 31, 2015: 655,773,584) 13,115 13,115 13,115
Equity shares of ` 2/- each
13,115 13,115 13,115

Financials 63
ANNUAL REPORT 2016-17
noteS to the fInancIal StateMentS as aT March 31, 2017

` in Lacs
Particulars as at as at as at
31st March-2017 31st March-2016 1st april-2015
subscribed and Paid up capital
655,773,584 (March 31, 2016: 655,773,584, March 31, 2015: 655,773,584) 13,115 13,115 13,115
Equity shares of ` 2/- each
Less: Forfeited shares - 249,745 (March 31, 2016: 249,745, March 31, 5 5 5
2015: 249,745) Equity shares of ` 2/- each
655,523,839 (March 31, 2016: 655,523,839, March 31, 2015: 655,523,839) 13,110 13,110 13,110
Equity shares of ` 2/- each
Add: Amount originally paid up on forfeited shares 2 2 2
13,112 13,112 13,112

a) reconciliation of the number of shares :-

Particulars as at 31st March-2017 as at 31st March-2016 as at 1st april-2015
No. of shares amount No. of shares amount No. of shares amount
Balance as at the beginning of the 655,523,839 13,112 655,523,839 13,112 655,523,839 13,112
year
Add:- Issued during the Year - - - - - -
Balance as at the end of the year 655,523,839 13,112 655,523,839 13,112 655,523,839 13,112
b) rights, preferences and restrictions attached to shares:
The company has one class of equity shares having a par value of ` 2 per share. Each shareholder is eligible for one vote per
share held. In the event of liquidation of the company, the holders of equity shares will be entitled to receive any of the remaining
assets of the company, after distribution of all preferential amounts. However, no such preferential amounts exist currently. The
distribution will be in proportion to the number of equity shares held by the shareholders.

c) Details of shares held by shareholders holding more than 5% of the aggregate shares in the company:
Name of shareholders as at 31st March-2017 as at 31st March-2016 as at 1st april-2015
No. of shares holding % No. of shares holding % No. of shares holding %
a) Avantha Holdings Limited 322,689,019 49.23% 322,689,019 49.23% 322,689,019 49.23%
b) Life Insurance Corporation 43,872,365 6.69% 43,872,365 6.69% 44,134,423 6.73%
of India
c) Samera Special Situations 59,480,544 9.07% 59,480,544 9.07% 41,515,609 6.33%
Mauritius
d) Platinum Investment - - 35,282,244 5.38% 35,282,244 5.38%
Management Ltd. A/c Platinum
Asia Fund
e) Finquest Securities Private 35,458,000 5.41% - - - -
Limited
d) Terms of securities convertible into equity shares:
123 (March 31, 2016: 123) equity shares of ` 2/- each represent 41 underlying Global Depository Receipts.
e) Under Previous GAAP, proposed dividend including dividend distribution tax (DDT), are recognised as liability in the period to which
they relate, irrespective of when they are declared. Under Ind AS, proposed dividend is recognised as a liability in the period in
which it is declared by the Company, usually when approved by shareholders in the general meeting, or paid. and its reversal
impact thereof along with effect of dividend tax.

20 BOrrOWINGs:

Particulars as at as at as at
31st March-2017 31st March-2016 1st april-2015
Non-current Borrowings:
secured Loan:-
a) Non convertible debentures 15,000 15,000 15,000
b) Term loan from :-
Bank 47,709 67,381 14,586
Financial Institutions 12,500 8,393 12,964
Total 75,209 90,774 42,550

current Borrowings:
Working capital loan 158,893 100,477 107,507
Total 158,893 100,477 107,507

64 BALLARPUR INDUSTRIES LIMITED

ANNUAL REPORT 2016-17
noteS to the fInancIal StateMentS as aT March 31, 2017

` in Lacs
a) The Company had availed various secured financial facilities from the banks and financial institutions (“the Lenders”). The said
loans are secured by way of a first pari-passu charge over all moveable / immoveable assets of the company both present and
future.
b) All the loans as mentioned above are in Indian Currency except working capital loan taken from Standard Chartered Bank of GBP
73.40 Lacs (O/s Amount as on 31.03.2017: ` 6123 Lacs.
c) The Company is required to maintain ratios (including total debt to net worth, EBITDA to gross interest, debt service coverage ratio
and secured coverage ratio) as mentioned in the loan agreements at specified levels. In the event of failure to meet any of these
ratios these loans become callable at the option of lenders, except where exemption is provided by lender.
d) In the current financial year, due to delay in repayments of debts and payment of interest, the lenders of the company have invoked
standstill provision. As of March 31, 2017, the Company had breached the financial covenants set by its bankers for outstanding
term loans amounting to ` 2,429 Lacs. The details is as under:-
Borrowing Particulars Default Upto 3 Months 3 to 6 Months
Outstanding
amount
Exim Bank 1,429 714 715
State Bank Of Travancore 375 125 250
The South Indian Bank 500 500 -
IDBI Bank 125 125 -
Total 2,429 1,464 965
Therefore, company is in discussions with banks to finalise & implement SDR/Other restructuring packeges.
e) The maturity profile of the company's borrowing at the reporting date based on contractual undiscounted repayment obligation
are as follows :-
Year Nature as at
31st March-2017
2017-18 Current 17,235
2018-19 14,757
2019-20 17,773
2020-21 16,300
Non-Current
2021-22 16,200
2022-23 7,695
2023-24 3,000
f) The term loans, working capital loans etc. are arranged at fixed & floating rates. The interest rates per annum are as follows:-
Particulars as at as at as at
31st March-2017 31st March-2016 1st april-2015
a) Non convertible debentures 11.75% 11.75% 11.75%
b) Term loan from :-
Bank 11.45% to 12.27% 11.45% to 12.27% 11.75% to 12.00%
Financial Institutions 11.20% to 12.00% 11.20% to 12.00% 11.75% to 12.01%
c) Working capital loan 11.50% to 14.00% 11.75% to 12.25% 11.75% to 12.25%

Financials 65
ANNUAL REPORT 2016-17
 as aT March 31, 2017

66
noteS to the fInancIal StateMentS
g) Loan from Bank/Financial Institutions :-
` in Lacs

sl. Name of Bank sanctioned as on date Total current Non- Interest security repayment terms
No. amount Outstanding current rate
amount
a) Exim Bank 15,000 31-March-17 9,222 4,286 4,936 Base Rate The Loan is secured by way of a first
Term loan is repayable in 21 equal quarterly
31-March-16 10,690 3,571 7,119 + 1.50% pari-passu charge over all moveable
installments starting from the end of 24
1-April-15 13,534 2,857 10,677 initially fixed assets of the company both
months from the date of first disbursement

ANNUAL REPORT 2016-17

present and future. ie. 29Oct 2012. Therefore, Payment Due date
starting from November 2014 to October 2019.
b) Clix Capital P. 5,000 31-March-17 - - - Benchmark The Loan is secured by way of a first Term loan is repayable in 20 equal quarterly
Ltd. formerly 31-March-16 2,500 1,250 1,250 Rate +2.70% pari-passu charge over all moveable installments starting from September 2013 to
known as GE 1-April-15 3,250 1,000 2,250 initailly fixed assets of the company both June 2018.
Money Financial present and future.

BALLARPUR INDUSTRIES LIMITED

Services P. Ltd.
c) State Bank of 5,000 31-March-17 4,599 4,599 - Base Rate The Loan is secured by way of a first Term loan is repayable in 32 equal quarterly
Travancore 31-March-16 4,700 375 4,325 + 1.50% pari-passu charge over all moveable installments starting from September 2014 to
1-April-15 4,857 225 4,632 initially fixed assets of the company both June 2022.
present and future.
d) PHOENIX ARC 10,000 31-March-17 9,991 2,500 7,491 Base Rate The Loan is secured by way of a first Term loan is repayable in 20 equal quarterly
PVT LTD* 31-March-16 9,993 500 9,493 + 1.50% pari-passu charge over all moveable installments starting from December 26, 2016
1-April-15 9,991 - 9,991 initially fixed assets of the company. to September 26, 2021.
e) IDBI BANK 10,000 31-March-17 9,522 875 8,647 Base Rate + The Loan is secured by way of a first Term loan is repayable in 27 equal quarterly
31-March-16 9,882 475 9,407 2% initially pari-passu charge over freehold installments starting from December 2015 to
1-April-15 - - - immovable property of units June 2022.
Kamlapuram & Shreegopal.
f) ICICI BANK 27,500 31-March-17 27,500 4,125 23,375 Base Rate The Loan is secured by way of a first Term loan is repayable in 20 equal quarterly
31-March-16 27,500 - 27,500 + 1.92% pari-passu charge over all moveable installments starting from the end of 9th
1-April-15 - - - initially fixed assets of the company. Quarter from the date of first disbursement/
drawdown i.e. September 2017 to June 2022.
g) ICICI BANK 17,000 31-March-17 16,610 850 15,760 Base Rate The Loan is secured by way of a first Term loan is repayable in 20 equal quarterly
31-March-16 16,680 - 16,680 + 2.60% pari-passu charge over all fixed installments starting from the end of 9th
1-April-15 - - - initially assets of the company. Quarter from the date of first disbursement/
drawdown i.e. March 2018 to December 2022.
h) NCD Yes Bank 31-March-17 - - - 9.90%
31-March-16 - - -
1-April-15 5,000 5,000 -
i) NCD LIC 31-March-17 15,000 - 15,000 11.75% Debentures are secured by way of These Debentures is repayable in 5 equal
31-March-16 15,000 - 15,000 a first pari-passu charge over all yearly installments starting from the F.Y. 19-
1-April-15 15,000 - 15,000 movable properties of the company 20 to 23-24.
both present and future.
*Loan from South Indian Bank has been absolutely assigned and transferred to Phoenix ARC Private Limited. w.e.f. 17.03.2017 together with all securities, rights, title and intrests in all agreements,
deeds and documents in relation to or about to the said debts and now company will deal directly with Phonix in all respects in relation to this debt.
noteS to the fInancIal StateMentS as aT March 31, 2017

` in Lacs

21 OThEr FINaNcIaL LIaBILITIEs

Particulars as at as at as at
31st March-2017 31st March-2016 1st april-2015
Due to Related Parties 52,243 93,189 66,080
Total 52,243 93,189 66,080

22 PrOVIsIONs
Particulars as at as at as at
31st March-2017 31st March-2016 1st april-2015
Provisions for employee benefits :-
- Provision for gratuity 2,582 2,667 2,572
- Provision for leave encashment 697 874 850
Total 3,279 3,541 3,422

23 DEFErrED TaX LIaBILITY

Particulars as at as at as at
31st March-2017 31st March-2016 1st april-2015
Deferred tax liability (net)
Diffrence in Tax Base of Property, Plant and Equipments 2,698 5,240 5,633
Total 2,698 5,240 5,633
23.1 reconciliation of tax expenses and the accounting profit multiplied by domestic tax rate:
Since the Company has incurred Business loss during the year 2016-17 and previous year 2015-16 therefore no tax is payable for these
years as per provisions of Income Tax Act, 1961, Hence calculation of effective tax rate is not required.
23.2 The Company has recognised deferred tax assets on carry forward business losses as sufficient future taxable income will be available
against which deferred tax assets can be realised considering its present order book and anticipated orders.

24 TraDE PaYaBLEs
Particulars as at as at as at
31st March-2017 31st March-2016 1st april-2015
For acceptances
To micro,small and medium enterprises 155 106 87
Payable to related parties 0 12 3
Other payables 11,704 12,408 12,007
Total 11,859 12,526 12,097
Micro and Small Enterprises under the Micro and Small Enterprises Development Act, 2006 have been determined based on the
information available with the Company and the required disclosures are given below:

Particulars as at as at as at
31st March-2017 31st March-2016 1st april-2015
Principal amount due & remaining unpaid - - -
Interest due thereon - - -
Interest paid by the Company in terms of Section 16 - - -
Interest due and payable for the period of delay in payment - - -
Interest accrued and remaining unpaid - - -
Interest remaining due and payable even in succeeding years - - -

Financials 67
ANNUAL REPORT 2016-17
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` in Lacs

25 OThEr FINaNcIaL LIaBILITIEs

Particulars as at as at as at
31st March-2017 31st March-2016 1st april-2015
Current maturities of long term debt 17,235 6,171 9,082
Interest accrued but not due on borrowings 7,982 1,753 958
Security deposits 177 743 680
Interest accured on secutiry deposits 35 40 30
Unpaid dividends 67 80 85
Liability for compulsory / optional Buyback 179 181 185
Payables for capital goods 43 61 39
Bank book overdrawn - 5 232
Statutory dues 4,399 3,406 3,044
Payable to employee 5,661 3,089 1,782
Due to related parties 16 16 56
Total 35,794 15,545 16,173

26 OThEr cUrrENT LIaBILITIEs

Particulars as at as at as at
31st March-2017 31st March-2016 1st april-2015
Advance received from customers 134 110 89
Security deposit 494 465 492
Other payable 1,112 269 174
Total 1,740 844 755

27 PrOVIsIONs
Particulars as at as at as at
31st March-2017 31st March-2016 1st april-2015
Provisions for employee benefits :
- Provision for gratuity 442 390 396
- Provision for leave encashment 260 172 203
Provision for tax including MAT 3,419 1,410 1,247
Others provisions (Net of payment) (refer Note 27.1) 71 66 61
Total 4,192 2,038 1,907

27.1 The Company is carrying provision for obligation as on Balance Sheet date, which may result in outflow of resources. The following is
the disclosure of such provisions covered under Ind AS 37.
as at Provision Provision as at
1st april-2015 During the Year Utilised/reversed 31st March- 2016
During the Year
Provision For Sales Tax* 61 5 - 66

as at Provision Provision as at
1st april-2016 During the Year Utilised/reversed 31st March- 2017
During the Year
Provision For Sales Tax 66 5 - 71
*Represents provisions against sales tax cases for which appeal has been filed before Punjab VAT Tribunal at Chandigarh.

68 BALLARPUR INDUSTRIES LIMITED

ANNUAL REPORT 2016-17
noteS to the fInancIal StateMentS
FOr ThE FINaNcIaL
YEar ENDED March 31, 2017

` in Lacs

28 rEVENUE FrOM OPEraTIONs

Particulars Year ended Year ended
31-March-2017 31-March-2016
sale of products
Paper (including coated ) 22,142 55,606
Pulp 115 1,445
Others 50 1,353
sub Total 22,307 58,404
Other operating revenue
Scraps sale 354 779
sub Total 354 779
Total 22,661 59,183

29 OThEr INcOME
Particulars Year ended Year ended
31-March-2017 31-March-2016
Profit on sale of Property, Plant & Equipments (Net) 3,436 2,786
Gain on foreign currency fluctuations 3 -
Rent and license fee 1 1
Interest earned 3 10
Other non operating income (net of expenses directly attributable to such income) 3,253 2,562
Dividend Income - 1
Total 6,696 5,360

30 cOsT OF MaTErIaL cONsUMED

Particulars Year ended Year ended
31-March-2017 31-March-2016
Bamboo 780 1,878
Wood and wood species 2,834 6,493
Chemicals 2,737 5,069
Wood pulp - 229
Packing materials 478 709
Others - 287
Total 6,829 14,665

31 INcrEasE/DEcrEasE IN sTOck
Particulars Year ended Year ended
31-March-2017 31-March-2016
stock at the beginning of the Period/year
Finished Goods
Paper 2,362 7,332
Pulp 57 701
2,419 8,033
Work in Progress
Paper 356 873
Pulp 3 1,017
359 1,890
Total (a) 2,778 9,923
stocks at the end of the period/year
Finished Goods
Paper 17 2,362
Pulp - 57
17 2,419
Work in Progress
Paper 123 356
Pulp - 3
123 359
Total (B) 140 2,778
Increase /(Decrease) (a-B) 2,638 7,145

Financials 69
ANNUAL REPORT 2016-17
noteS to the fInancIal StateMentS
FOr ThE FINaNcIaL
YEar ENDED March 31, 2017

` in Lacs

32 EMPLOYEE BENEFIT EXPENsEs

Particulars Year ended Year ended
31-March-2017 31-March-2016
Salaries and wages 6,540 5,930
Contribution to provident and other funds 519 503
Staff welfare expenses 443 477
Total 7,502 6,910

33 FINaNcE cOsTs
Particulars Year ended Year ended
31-March-2017 31-March-2016
Interest expenses 16,291 10,799
Other borrowing costs 562 3
Net loss / (gain) in foreign currency transcation and translation (47) (49)
Less: Interest earned (1,487) (5,560)
Total 15,319 5,193

34 OThEr EXPENsEs
Particulars Year ended Year ended
31-March-2017 31-March-2016
Consumption of stores and spare parts 419 586
Power and fuel 6,343 11,624
Excise duty on year end inventory of finished goods (33) (48)
Rent 2,080 1,242
Repairs to buildings 63 71
Repairs to machinery 475 604
Repairs others 70 84
Insurance 143 145
Rates and taxes 154 90
Other manufacturing expenses 195 542
Office & other expenses 584 1,005
CSR Expenses 13 29
Selling expenses 1,274 52
Bad Debts 564 -
Carriage and freight 629 899
*Legal and professional charges 132 134
Directors sitting fees 11 12
Total 13,116 17,071
*Legal & Professional Expenses includes amount of payment to Auditor (refer Note. 39).

35 EXcEPTIONaL ITEMs
Particulars Year ended Year ended
31-March-2017 31-March-2016
Impairment of Property, Plant & Equipments 20,100 -
Others 5,049 -
Total 25,149 -
Impairment of asset review of one unit at 'kamplapuram'
1. Due to non-operation of unit at 'Kamlapuram', this plant was not serviced / maintained in satisfactory running condition, thereby
requiring impairment testing under Ind AS 36. The unit had appointed a registered valuer and based on his report an impairment
loss amounting to ` 20,100/- Lacs has been charged to Profit & Loss Account under exceptional item. To arrive at the impairment
amount, Valuer have adopted Fair Market Value using CostApproach, applying relevant index and relevant reduction factors as the
plant was not in operation for almost last 36 months.
2. Further, company has also written off the inventory of ` 4,771/- Lacs & Advance to Supplier of ` 278/- Lacs under exceptional item
of Kamlapuram Plant.

70 BALLARPUR INDUSTRIES LIMITED

ANNUAL REPORT 2016-17
noteS to the fInancIal StateMentS as aT March 31, 2017

36 FINaNcIaL INsTrUMENTs
a) capital risk Management
The company manages its capital to ensure the Company will be able to continue as a going concern while maximising the return
to stakeholders through the optimisation of the debt and equity balances.
The company manages its capital structure and makes adjustments in light of changes in economic conditions and the requirement
of the financial covenants. The funding requirement is met through a mixture of equity, internal accrual, long term borrowings
and short term borrowings. The Company monitors capital using a gearing ratio, which is net debt divided by total capital plus net
debt.
` in Lacs
Particulars as at as at
31st March-2017 31st March-2016
Loans and borrowings 234,102 191,251
Less: cash and cash equivalents 253 5,627
Net debt 233,849 185,624
Equity 122,414 167,587
Capital and net debt 356,263 353,211
Gearing ratio 0.66 0.53

b) categories of financial instruments

Particulars March 31, 2017 March 31, 2016
Financial assets
at amortised cost:
Loans and receivables:
Investments in subsidiaries, associates and joint ventures 105,784 105,784
Investments other 751 751
Trade and other receivables 537 1,555
Refundable deposits 1,021 963
Loans 52,764 48,772
Cash and bank balances 499 5,887

Financial Liabilities
Other financial libailties
Bank borrowings (including current maturities) 251,337 197,422
Interest accrued but not due on borrowings 7,982 1,753
Due to related party 52,259 93,205
Trade payables 11,859 12,526
Payable to employees 5,661 3,089
Statutory Dues 4,399 3,406
Security deposits including interest there on 211 783
Liability For Compulsory / Optional Buyback 179 181
Other financial liability 111 146
c) Financial risk Management Objectives and Policies
The operations of the Company are subject to a variety of financial risks, including market risk, foreign currency risk, credit risk,
interest rate risk and liquidity risk. The Company has formulated a financial risk management framework whose principal objective
is to minimise the Company's exposure to risks and/or costs associated with the financing, investing and operating activities of the
Company.
Various risk management policies are approved by the Board for monitoring on the day-to-day operations for the control and
management of the risks associated with financial instruments.
i) Market risk
Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market
prices. Market prices comprise three types of risk: currency rate risk, interest rate risk and other price risks, such as equity price
risk and commodity risk. Financial instruments affected by market risk include loans and borrowings, deposits, investments, and
derivative financial instruments.
(a) Foreign exchange risk and sensitivity
The Company transacts business primarily in Indian Rupee and no material transactions have been done in foreign currency,
accordingly the company is not exposed to any material foreign exchange risk.
(b) Interest rate risk and sensitivity

Financials 71
ANNUAL REPORT 2016-17
noteS to the fInancIal StateMentS as aT March 31, 2017

Interest rate risk is the risk that the fair value of future cash flows of the Company's financial instruments will fluctuate
because of changes in market interest rates.
The Company's exposure to interest rate risk arises primarily because of the bank borrowings comprising term loans, loans
against import and revolving credits which are at the aggregate of Base rate / MCLR and the apprlicable margin. The interest
rates for the said bank borrowings are disclosed in Note No. 20.
The sensitivity analyses below have been determined based on the exposure to interest rates for non-derivative instruments
at the end of the reporting period. For floating rate liabilities, the analysis is prepared assuming the amount of the liability
outstanding at the end of the reporting period was oustanding for the whole year. A 50 basis point increase or decrease is used
when reporting interest rate risk internally to key management personnel and represents management's assessment of the
reasonably possible change in interest rates.

Interest rate sensitivity March 31, 2017 March 31, 2016

INR borrowings (1,257) (987)
The assumed movement in basis points for interest rate sensitivity analysis is based on the currently observable market
environment.
(c) commodity price risk and sensitivity
The Company has in place policies to manage the Company's exposure to fluctuation in the prices of the key materials and
commodities used in the operations. Nevertheless, it believes that it has competitive advantage in terms of high quality
products and by continually upgrading its expertise and range of products to meet the needs of its customers. The company
enters into fixed price contracts to establish determinable prices for raw materials and consumables used. The management
does not consider the Company's exposure to market risk significant as on March 31, 2017. Therefore, sensitivity analysis for
market risk is not disclosed.
credit risk
Credit risk arises from the possibility that counter party may not be able to settle their obligation as agreed. To manage this,
Group periodically assesses the financial reliability of customers, taking into account the financial condition, current economic
trends, and analysis of historical bad debts and ageing of accounts receivable, individual risk limits are set accordingly. The
company does not hold any collateral on the balance outstanding.
Trade receivables
The Company extends credit to customers in normal course of business based upon careful evaluation of the customer's
financial condition and credit history. Outstanding customer receivables are regularly monitored. The ageing of trade
receivable is as below:

Particulars Past due Total

upto 6 months more than 6
months
Trade receivables
as at March 31, 2017
Secured 62 - 62
Unsecured 283 192 475
Gross Total 345 192 537
Provision for doubtful receivables - - -
Net Total 345 192 537
as at March 31, 2016
Secured 218 - 218
Unsecured 1,296 41 1,337
Total 1,514 41 1,555
Provision for doubtful receivables - - -
Net Total 1,514 41 1,555
Financial instruments and cash deposits
The Company considers factors such as track record, size of the institution, market reputation and service standards to select
the banks with which balances and deposits are maintained. Generally, the balances are maintained with the institutions with
which the Company has also availed borrowings. The Company does not maintain significant cash and deposit balances other
than those required for its day to day operations.
Liquidity risk
Liquidity risk is the risk that the Company may not be able to meet its present and future cash and collateral obligations
without incurring unacceptable losses.
The results of the Company for the current year have been impacted due to lack of adequate working capital. The lenders of
the company have invoked standstill provision due to delay in repayments of debts and payment of interest. The company is in
discussions with banks to finalise & implement SDF / Other restructuring packages.

72 BALLARPUR INDUSTRIES LIMITED

ANNUAL REPORT 2016-17
noteS to the fInancIal StateMentS
FOr ThE FINaNcIaL
YEar ENDED March 31, 2017

The Company is required to maintain ratios (including total debt to net worth, EBITDA to gross interest, debt service coverage
ratio and secured coverage ratio) as mentioned in the loan agreements at specified levels. In the event of failure to meet any
of these ratios these loans become callable at the option of lenders, except where exemption is provided by lender.
Maturity profile of financial liabilities
The table below provides regarding the remaining contractual maturities of financial liabilities at the reporting date based on
contractual undiscounted payments.
` in Lacs
Particulars as at 31st March-2017 as at 31st March-2016 Total
Less than 1 to 5 years Total Less than 1 to 5 years
1 year 1 year
Due to related party 16 52,243 52,259 16 93,189 93,205
Trade payables 11,859 - 11,859 12,526 - 12,526
Payable to employees 5,661 - 5,661 3,089 - 3,089
Statutory Dues 4,399 - 4,399 3,406 - 3,406
Security deposits including interest 705 - 705 1,249 - 1,249
there on
Liability For Compulsory / Optional 179 - 179 181 - 181
Buyback
Other financial liability 111 - 111 146 - 146
Total 22,930 52,243 75,173 20,613 93,189 113,802

37. sEGMENT rEPOrTING

Segments have been identified taking into account nature of product and differential risk and returns of the segment. These business
segments are reviewed by the Chief Operating Officer of the Company (Chief operating decision maker).
The Expenses, which are not directly identifiable to a specific business segment are clubbed under “Unallocated Corporate Expenses” and
similarly, the common assets and liabilities, which are not identifiable to a specific segment are clubbed under “Unallocated Corporate
Assets/ Liabilities" on the basis of reasonable estimates.

` in Lacs
Particulars Year Paper PaPEr PULP TOTaL
PrODUcTs
& OFFIcE
sUPPLIEs
revenues
Gross Sale to External Customers 2016-17 18,925 3,267 115 22,307
2015-16 41,126 15,915 1,364 58,404
Excise Duty 2016-17 (1,026) (98) - (1,124)
2015-16 (2,453) (470) (82) (3,005)
Total Segment Revenues (Net of Excise) 2016-17 17,899 3,169 115 21,183
2015-16 38,673 15,445 1,282 55,399
segment results 2016-17 (3,993) 33 (4,860) (8,820)
2015-16 12,858 159 (5,525) 7,492
Less: Unallocated Corporate Expenses 2016-17 309
2015-16 308
Profit Before Interest, Tax and exceptional items 2016-17 (9,129)
2015-16 7,184
Interest & Finance Cost (Net) 2016-17 15,319
2015-16 5,193
Profit Before Tax & Exceptional Items 2016-17 (24,447)
2015-16 1,991
Exceptional Items 2016-17 25,149
2015-16 -
Provision For Tax 2016-17 -
- Current Tax (Net of MAT Credit Entitlement) 2015-16 218
- Deferred Tax 2016-17 (2,542)
2015-16 (393)

Financials 73
ANNUAL REPORT 2016-17
noteS to the fInancIal StateMentS
FOr ThE FINaNcIaL
YEar ENDED March 31, 2017

` in Lacs
Particulars Year Paper PaPEr PULP TOTaL
PrODUcTs
& OFFIcE
sUPPLIEs
Net Profit before OCI 2016-17 (47,054)
2015-16 2,166
Other Information
segmental assets 2016-17 323,261 6,983 31,044 361,288
2015-16 313,038 11,747 54,554 379,339
Unallocated Corporate assets 2016-17 107,033
2015-16 112,422
Total Assets 2016-17 468,321
2015-16 491,761
segmental Liabilities 2016-17 77,244 1,957 6,554 85,755
2015-16 106,099 4,595 4,166 114,860
Unallocated Corporate Liabilities 2016-17 6,117
2015-16 6,651
Total Liabilities 2016-17 91,872
2015-16 121,511
Capital Expenditure during the period/year 2016-17 1,557
2015-16 13,923
Depreciation 2016-17 5,269
2015-16 5,810
Total Liabilities Exclude
Long Term Borrowings 2016-17 75,209
2015-16 90,774
Short Term Borrowings 2016-17 158,893
2015-16 100,477
Current Maturities of Long Term Debts 2016-17 17,235
2015-16 6,171
Deferred tax liabilities 2016-17 2,698
2015-16 5,240

38. EMPLOYEE BENEFITs

As per Ind AS-19 "Employee Benefits" , the disclosure of employee benefits as defined in the accounting standard are given below:
Defined contribution Plan*
Contribution to defined contribution Plan is recognized and charged off for the year, are as under :

Particulars For The For The

Year Ended Period Ended
2017 2016
Employer’s contribution to provident fund 222 197
Employer’s contribution to pension scheme 258 243
* Includes charged to other accounts
Defined Benefit Plan
a) Gratuity
In accordance with applicable Indian laws, the Company provides for gratuity, a defined benefit plan, covering eligible employees.
This Plan provides for a lump sum payment to vested employees on retirement, death, incapacity or termination of employment
of amounts that are based on salary and tenure of employment. Liability with regard to this plan are determined by actuarial
valuation.
b) Leave Encashment
The Company permits encashment of leave accumulated by their employees on retirement, separation and during the course
of service. The liability for encashment of leave is determined and provided on the basis of actuarial valuation performed by an
independent actuary at each balance sheet date. This Plan is completely un-fuded

74 BALLARPUR INDUSTRIES LIMITED

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FOr ThE FINaNcIaL
YEar ENDED March 31, 2017

c) reconciliation of opening and closing balances of the present value of the defined benefit obligations

Particulars 2016-17 2015-16

Gratuity Leave Gratuity Leave
Encashment Encashment
(Unfunded) (Unfunded) (Unfunded) (Unfunded)
Present value of obilgation as at the beginning of the period 3,057 1,046 2,968 1,052
Current service cost 120 120 149 56
Interest Expense or cost 235 93 280 93
Acquisition - - - -
Re-Measurement (or Actuarial) (gain) / (loss) arising from:
- change in demographic assumptions - - (10) (0)
- change in financial assumptions 50 17 (30) (14)
- experience variance (i.e. Actual experience vs assumptions) (21) (41) 120 28
- others - - - -
Past service cost - - - -
Effect of change in foreign exchange rates - - - -
Benefits paid (417) (278) (420) (169)
Effects of business combinations or disposals - - - -
Exchange differences - - - -
Present value of obligation as at the end of the period 3,024 957 3,057 1,046
d) The components of amounts recognised and charges off for the year are as under:

Particulars 2016-17 2015-16

Gratuity Leave Gratuity Leave
Encashment Encashment
(Unfunded) (Unfunded) (Unfunded) (Unfunded)
Currrent service cost 120 120 149 56
Past service cost - - - -
Loss / (Gain) on settlement
Net interest income / (cost) on the net defined benefit liability 235 93 280 93
(Assets)
Less Recovered from Holding Company
Net cost recognised in statement of Profit/Loss 356 214 429 149
Other comprehensive Income:
Actuarial (gain) / losses
- change in demographic assumptions - - (10) (0)
- change in financial assumptions 50 17 (30) (14)
- experience variance (i.e. Actual experience vs assumptions) (21) (41) 120 28
- others - - - -
Components of defined benefit costs recognised in other 29 (24) 80 14
comprehensive income
e) Balance sheet Obligations

Particulars 2016-17 2015-16

Gratuity Leave Gratuity Leave
Encashment
(Unfunded) (Unfunded) (Unfunded) (Unfunded)
Present value of obligation as at the end of the period 3,024 957 3,057 1,046
Fair value of plan assets as at the end of the period - - - -
Liabilities/ (Assets) recognised in the Balance Sheet 3,024 957 3,057 1,046
f) Economic assumptions

Particulars 2016-17 2015-16

Gratuity Leave Gratuity Leave
Encashment
(Unfunded) (Unfunded) (Unfunded) (Unfunded)
Discount rate 7.25% 7.25% 7.70% 7.70%
Salary growth rate 5.00% 5.00% 5.00% 5.00%
Expected rate of return on plan assets 0.00% 0.00% 0.00% 0.00%

Financials 75
ANNUAL REPORT 2016-17
noteS to the fInancIal StateMentS
FOr ThE FINaNcIaL
YEar ENDED March 31, 2017

g) Demographic assumptions

Particulars 2016-17 2015-16

Gratuity Leave Gratuity Leave
Encashment Encashment
(Unfunded) (Unfunded) (Unfunded) (Unfunded)
Retirement age (years) 60 60 60 60
Mortality Rate (as % of IALM 06-08) 100% 100% 100% 100%
Withdrawal rate 2% 2% 2% 2%
Rate of leave availment 0.00% 0.00% 0.00% 0.00%
h) sensitivity anaiysis
Significant actuarial assumptions for the determination of the defined benefit obligation are discount rate, expected salary increase
ad mortality. The sensitivity analysis below have determined based on reasonable possible changes of the asumptions occuring at
the end of the reporting period, while holding all other assumptions constant. The result of sensitivity analysis is given below:

Particulars changes in 2016-17

assumption PaID LEaVE Grat. On roll Grat. On contractor
% Impact % Impact % Impact % Impact % Impact % Impact
on defined on defined on defined on defined on defined on defined
benefit benefit benefit benefit benefit benefit
obligation obligation obligation obligation obligation obligation
due to due to due to due to due to due to
increase in Decrease in increase in Decrease in increase in Decrease in
assumption assumption assumption assumption assumption assumption
Discount rate 1% -3% 4% -4% 4% 0% 0%
Salary growth rate 1% 4% -4% 4% -4% 0% 0%
Attrition Rate 1% 1% -1% 1% -1% 0% 0%
Mortality rate 1% 0% 0% 0% 0% 0% 0%

Particulars changes in 2015-16

assumption PaID LEaVE Grat. On roll Grat. On contractor
% Impact % Impact % Impact % Impact % Impact % Impact
on defined on defined on defined on defined on defined on defined
benefit benefit benefit benefit benefit benefit
obligation obligation obligation obligation obligation obligation
due to due to due to due to due to due to
increase in Decrease in increase in Decrease in increase in Decrease in
assumption assumption assumption assumption assumption assumption
Discount rate 1% -3% 3% -4% 4% 0% 0%
Salary growth rate 1% 3% -3% 4% -4% 0% 0%
Attrition Rate 1% 1% -1% 1% -1% 0% 0%
Mortality rate 1% 0% 0% 0% 0% 0% 0%
i) Maturity Profile of defined benefit obligation (Weighted average)

Particulars 2016-17 2015-16

Gratuity Leave Gratuity Leave
Encashment" Encashment
(Unfunded) (Unfunded) (Unfunded) (Unfunded)
Expected cash Flows Over the next (Valued on undiscounted
basis)
1 year 442 259 390 165
2 - 5 year 1,827 427 1,874 577
6 - 10 year 1,106 354 1,227 415
More than 10 year 903 338 981 402

76 BALLARPUR INDUSTRIES LIMITED

ANNUAL REPORT 2016-17
noteS to the fInancIal StateMentS
FOr ThE FINaNcIaL
YEar ENDED March 31, 2017

` in Lacs

39 OThEr DIscLOsUrEs
Particulars Year ended Year ended
March 31, 2017 March 31, 2016
a) auditors remunearation
Statutory Auditors
i. Audit Fee (Incl. Cost Audit Fees) 41 40
ii. Tax Audit Fee 8 8
iii. Limited Review 8 8
iv. Other capacity 4 11
iv. Reimbursement of Expenses 1 1
Total 62 68

(b) Expenditure on corporate social responsibility :

Details of expenditure on Corporate Social Responsibility Activities as per Section 135 of the Companies Act, 2013 read with
schedule III are as below:
Particulars Year ended Year ended
March 31, 2017 March 31, 2016
Rural development 2 -
Livelihood Enhancement Projects 11 29
Total 13 29

40 cONTINGENT LIaBLITIEs aND cOMMITMENTs

Particulars as at as at as at
31-March-2017 31-March-2016 1-april-2015
(to the extent not provided for)
1) contingent Liabilities:
Claims against the Company not acknowledged as debts 23,648 15,130 18,263
Guarantees 1,524 2,131 1,828
TOTaL (a) 25,172 17,261 20,091
2) commitments
Estimated amount of contracts remaining to be executed on capital - 1 171
account and not provided for (net of advances)
TOTaL (B) - 1 171
TOTaL (a+B) 25,172 17,262 20,262
3) In respect of loan availed by its foreign wholly owned subsidiary, Ballarpur International holding B.V
i) The Company has granted to the lender a corporate guarantee of USD 97.75 Million.
ii) The Company has executed an indemnity and undertaking for stand-by Letter of credit facility of USD 55 Million.
4) In respect of loan availed by its stepdown subsidiary, Bilt Graphic Paper Product Limited
i) The Company has granted to the lender a corporate guarantee of Rs. 510 Crore.
5) In respect of loan availed by its subsidiary, avantha agritech Limited
i) The Company has provided a Put Option to the lendor, Yes Bank Limited of Rs. 65 Crore against his facility provide to borrower
Avanth Agritech Limited.
Note:- It is not possible to predict the outcome of the pending litigations with accuracy, the Company believes, based on legal opinions
received, that it has meritorious defences to the claims. The management believe the pending actions will not require outflow of resources
embodying economic benefits and will not have a material adverse effect upon the results of the operations, cash flows or financial
condition of the Company.

Financials 77
ANNUAL REPORT 2016-17
noteS to the fInancIal StateMentS
FOr ThE FINaNcIaL
YEar ENDED March 31, 2017

41 rELaTED ParTY TraNsacTIONs

In accordance with the requirements of IND as 24, on related party disclosures, name of the related party, related party relationships,
transactions and outstanding balances including commitments where control exits and with whom transactions have taken place
during reported year are:
a) List of related Parties over which control exists
subsidiary companies (Including step Down subsidiaries)
Ballarpur International Holdings B.V.
BILT Paper B.V.(Previously known as BILT Graphic Paper Holdings B.V.)
Ballarpur Paper Holdings B.V.
Ballarpur Speciality Paper Holdings B.V.
BILT Graphic Paper Products Limited
Avantha Agritech Ltd (BILT Tree Tech Limited name change w.e.f. 30-07-2016)
Sabah Forest Industries Sdn. Bhd.
Premier Tissues (India) Limited
BILT General Trading (FZE)- UAE (w.e.f 14-06-2016)
b) key Management Personnel
Mr. Gautam Thapar
Mr. B Hariharan
Mr Anup Kansal (upto 14-10-2015)
c) Name of the related Parties with whom transactions were carried out during the period and nature of relationship

Name of the related Party Nature of relationship

Ballarpur International Holdings B.V. Subsidiary
Avantha Agritech ltd (BILT Tree Tech Limited name change w.e.f. 30-07- Subsidiary
2016)
Premier Tissues (India) Limited Subsidiary
Ballarpur Paper Holdings B.V. Step Down Subsidiary
BILT Graphic Paper Products Limited Step Down Subsidiary
Sabah Forest Industries Sdn. Bhd. Step Down Subsidiary
Arizona Printers & Packers Private Limited Other Related Parties
Avantha Holdings Limited Other Related Parties
Avantha Power & Infrastructure Limited Other Related Parties
Avantha Realty Limited Other Related Parties
BILT Industrial Packaging Company Limited Other Related Parties
Biltech Building Elements Limited Other Related Parties
CG Power and Industrial Solutions Limited (formerly) Crompton Greaves Other Related Parties
Limited, Name
Global Green Company Limited Other Related Parties
Jhabua Power Limited Other Related Parties
Korba West Power Company Limited Other Related Parties
Mirabelle Trading Pte. Limited Other Related Parties
Saraswati Travels (P) Limited Other Related Parties
Avantha Business Solutions Ltd Other Related Parties
Solaris Chemtech Industries Limited Other Related Parties
UHL Power Company Ltd. Other Related Parties
Avantha Technologies Ltd Other Related Parties
key Management Personnel
Mr. Gautam Thapar
Mr. B Hariharan
Mr Anup Kansal (upto 14-10-2015)

78 BALLARPUR INDUSTRIES LIMITED

ANNUAL REPORT 2016-17
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FOr ThE FINaNcIaL
YEar ENDED March 31, 2017

(d) Details of transaction with related parties

(Financial transactions have been carried out in the ordinary course of business and/or in discharge of contract obligation

` in Lacs
s. Particulars relationship 31.03.2017 31.3.2016
No.
a) sale of goods,rent received & allocation of common
expenses for rendering corporate service:
BILT Graphic Paper Products Limited Step Down Subsidiary 1,065 79
Ballarpur International Holdings B.V. (Guarantee Step Down Subsidiary 2,556 -
Commision Recd/Receivable)
Avantha Holdings Limited Other Related Parties - 0
b) Purchase of Goods & services, rent and commission/
royalty:
Ballarpur International Holdings B.V. Subsidiary - 2,260
BILT Graphic Paper Products Limited Step Down Subsidiary 492 2,259
Avantha Holdings Limited Other Related Parties - 79
Biltech Building Elements Limited Other Related Parties 26 31
c) Loan Given during the period/year
Ballarpur International Holdings B.V. Subsidiary - 12,562
d) Loan received during the period/year
Ballarpur International Holdings B.V. Subsidiary - 10,714
e) Interest on Loan Given:
Ballarpur International Holdings B.V. Subsidiary 959 655
Avantha Realty Limited Other Related Parties 300 501
Sabah Forest Industries Sdn. Bhd. Step Down Subsidiary 228 -
f) advances given during the period/year
Sabah Forest Industries Sdn. Bhd. Step Down Subsidiary 1,566 3,774
Mirabelle Trading Pte. Limited Other Related Parties 5,239 5,863
g) Dividend received
BILT Graphic Paper Products Limited Step Down Subsidiary - 1
h) remuneration:
Mr Gautam Thappar Key Management 1 2
Personnel
Mr. B Hariharan Key Management - 775
Personnel
Mr. Anup Kansal Key Management - 112
Personnel
j) Outstanding Balances as on 31st March 2017
Avantha Agritech ltd (BILT Tree Tech Limited name Subsidiary 11,085 -
change w.e.f. 30-07-2016)
Premier Tissues (India) Limited Subsidiary 61 17
Ballarpur International Holdings B.V. Subsidiary 19,328 15,566
Ballarpur Paper Holdings B.V. Step Down Subsidiary 12 12
Sabah Forest Industries Sdn Bhd Step Down Subsidiary 5,340 3,774
BILT Graphic Paper Products Limited Step Down Subsidiary (52,253) (93,201)
Biltech Building Elements Limited Other Related Parties 1,249 1,160
Avantha Holdings Limited Other Related Parties 6,128 1,169
Crompton Greaves Limited Other Related Parties (5) (4)
Saraswati Travels Private Limited Other Related Parties - 8
BILT Industrial Packaging Company Limited Other Related Parties 859 859
Global Green Company Limited Other Related Parties 376 376
Arizona Printers & Packers Private Limited Other Related Parties 1 1
UHL Power Company Limited Other Related Parties 473 473
Salient Business Solutions Limited Other Related Parties 0 0
Korba West Power Company Limited Other Related Parties (0) (0)

Financials 79
ANNUAL REPORT 2016-17
noteS to the fInancIal StateMentS
FOr ThE FINaNcIaL
YEar ENDED March 31, 2017

` in Lacs
s. Particulars relationship 31.03.2017 31.3.2016
No.
Solaris Chemtech Industries Limited Other Related Parties (5,257) 2,243
Avantha Power & Infrastructure Limited Other Related Parties (103) (103)
Avantha Realty Limited Other Related Parties (344) 13,479
Avantha Technologies Ltd Other Related Parties 43 -
Mirabelle Trading Pte. Ltd. Other Related Parties 11,103 5,863
Mr R R Vederah Key Management - 11
Personnel
Mr B Hariharan Key Management 5 5
Personnel

42 EarNINGs PEr sharE

The following is a reconciliation of the equity shares used in the computation of basic and diluted earnings per equity share:

(Number of shares)
Particulars Year Ended Year Ended
March 31, 2017 March 31, 2016
Issued equity shares 655,523,839 655,523,839
Weighted average shares outstanding - Basic and Diluted - (A) 655,523,839 655,523,839

Net profit available to equity holders of the Company used in the basic and diluted earnings per share was determined as follows :-

Particulars Year Ended Year Ended

March 31, 2017 March 31, 2016
Profit and loss after tax for EPS - (B) (47,054) 2,166
Basic Earnings per share (B/A) (7.18) 0.33
Diluted Earnings per share (B/A) (7.18) 0.33
The number of shares used in computing basic EPS is the weighted average number of shares outstanding during the year.
The diluted EPS is calculated on the same basis as basic EPS, after adjusting for the effects of potential dilutive equity, if any.

43. During the year, the Company had specified bank notes or other denomination note as defined in the MCA notification G.S.R. 308(E)
dated March 31, 2017 on the details of Specified Bank Notes (SBN) held and transacted during the period from November 8, 2016 to
December, 30 2016, the denomination wise SBNs and other notes as per the notification is given below:
` in Lacs
Particulars specified Other Total
Bank Notes Denomination
Notes
Closing Cash in Hand as on 08-11-2016 5 0 5
Add: Permitted Receipts - 10 10
Less: Permitted Payments 0 7 7
Less Amount deposited in Banks 5 - 5
closing cash in hand as on 30-12-2016 - 3 3
* For the purposes of this clause, the term ‘Specified Bank Notes’ shall have the same meaning provided in the notification of the
Government of India, in the Ministry of Finance, Department of Economic Affairs number S.O. 3407(E), dated the 8th November, 2016.
44. The liability of the put option of subsidiaries, if any shall be determined and provided on settlement in view of on-going discussions with
banks.
45. The results of the company for the current year have been impacted due to lack of adequate working capital. The lenders of the company
have invoked standstill provision due to delays in repayment of debts & payment of interest. The company is in discussions with banks to
finalise & implement SDR/Other restructuring packages.
46. TraNsITION TO IND as
Basis of preparation
For all period up to and including the year ended March 31, 2016, the Company has prepared its financial statements in accordance with
generally accepted accounting principles in India (Indian GAAP). These financial statements for the year ended March 31, 2017 are the
Company’s first annual IND AS financial statements and have been prepared in accordance with IND AS.

80 BALLARPUR INDUSTRIES LIMITED

ANNUAL REPORT 2016-17
noteS to the fInancIal StateMentS as aT March 31, 2017

Accordingly, the Company has prepared financial statements which comply with IND AS applicable for periods beginning on or after
April 1, 2015 as described in the accounting policies. In preparing these financial statements, the Company’s opening Balance Sheet
was prepared as at April 1, 2015 the Company’s date of transition to IND AS. This note explains the principal adjustments made by the
Company in restating its Indian GAAP Balance Sheet as at April 1, 2015 and its previously published Indian GAAP financial statements for
the year ended March 31, 2016.
Exemptions
Ind AS 101 allows first-time adopters certain exemptions from the retrospective application of certain requirements under Ind AS. The
Company has applied the following exemptions:
• to measure an item of property, plant and equipment at the date of transition to Ind AS at its fair value and use that fair value as its
deemed cost at that date.
• to apply previous GAAP carrying amount of its investment in subsidiaries, associates and Joint venture as deemed cost as on the
date of transition to Ind AS.
• continue the policy adopted for accounting for exchange differences arising from translation of long-term foreign currency monetary
items recognised in the financial statements for the period ending immediately before the beginning of the first Ind AS financial
reporting period as per the previous GAAP.
Exceptions
The following mandatory exceptions have been applied in accordance with Ind AS 101 in preparing the financial statements.
(a) Estimates
The estimates at 1st April 2015 and 31st March 2016 are consistent with those made for the same dates in accordance with India
GAAP (after adjustments to reflect any difference if any, in accounting policies) apart from the following items where application of
Indian GAAP did not require estimation:
• Impairment of financial assets based on expected credit loss model
The estimates used by the Company to present these amounts in accordance with Ind AS reflect conditions as at the transition
date and as of 31st March 2016.
(b) Derecognition of financial assets and financial liabilities
The company has elected to apply the derecognition requirements for financial assets and financial liabilities in Ind AS 109
prospectively for transactions occurring on or after the date of transition of Ind AS.
(c) Classification and measurement of financial assets
The Company has classified the financial assets in accordance with Ind AS 109 on the basis of facts and circumstances that exist at
the date of transition to Ind AS.
The following reconciliations and explanatory notes thereto describe the effects of the transition on the Ind AS Opening statement of
financial position as at April 1, 2015. All explanations should be read in conjunction with the accounting policies of the company as
disclosed in the Notes to the Accounts.
(` in Lacs)
Particulars Note No. 1-april-15 31-March-16
Other Equity as per Previous GaaP 147,937 149,714
adjustments to other equity
Fair valuation of Assets, Financial Assets & Financial Liabilities (III) a 5,243 5,243
Impact of effective interest rate on borrowings (III) b 77 372
Proposed dividend (including Corporate Dividend Tax) (III) c 1,578 -
Reclassification of acturial gain / losses, arising in respect of employee benefit (III) d (948) (854)
schemes, to Other Comprehensive Income (OCI)
Others items (94) -
Other Equity as per Ind as 153,793 154,475
II. The following reconciliations and explanatory notes thereto describe the effects of the transition on the Ind AS on Statement of
Profit and Loss for the year ended March 31, 2016. All explanations should be read in conjunction with the accounting policies of the
company as disclosed in the Notes to the Accounts.
(` in Lacs)
Particulars 2015-16
Profit / (Loss) as per Previous GaaP 1,777
Adjustments
a. Amortisation of Transaction costs using Effective Interest Rate Method (III) b 295
b. Reclassification of acturial gain / losses, arising in respect of employee (III) d 94
benefit schemes, to Other Comprehensive Income (OCI)
Total adjustments 389
Profit / (Loss) as per Ind as 2,166

Financials 81
ANNUAL REPORT 2016-17
noteS to the fInancIal StateMentS as aT March 31, 2017

III. Notes to the reconciliation

a. The Company has as at the date of transition elected to measure Plant and Equipments under Property, Plant and equipment
at fair value as deemed cost.
On adoption of Ind-AS, the Company undertook a detailed evaluation of its financial assets & financial liabilities as at the date
of transition i.e. April 1, 2015. These assets & liabilities were assessed for future economic benefits expected to flow to the
Company or collection in accordance with Ind-AS 109. Ind- AS 109 requires measurement of provision for bad and doubtful
debts to be determined with reference to the expected credit loss model. Such assets , based on evaluation, have been
measured at the present value discounted at effective interest rate and adjusted to other reserve as at transition date.
b. Under Previous GAAP, Costs incurred in raising funds are amortised over the period for which the funds have been obtained,
using time proportionate basis. However, as per Ind AS, the transaction costs are accounted using Effective Interest Rate
Method.
c. Under Previous GAAP, proposed dividend including dividend distribution tax (DDT), are recognised as liability in the period to
which they relate, irrespective of when they are declared. Under Ind AS, proposed dividend is recognised as a liability in the
period in which it is declared by the Company, usually when approved by shareholders in the general meeting, or paid.
d. Under Previous GAAP, Remeasurement benefits of defined plans (gratuity), arising primarly due to change in acturial
assumptions was recognized as employee benefit expenses in the statement of Profit & Losss Account.Under Ind AS, such
remeasurement benefits relating to defined benefit plans is recognized in OCI as per the requirements of Ind AS 19- Employee
benefits. Consequently, the related tax effect of the same has also been recognized in OCI.
47 Previous Year Figures have been regrouped/reclassified wherever necessary to correspond with the current year's classification/
disclosure.

As per our report of even date attached For Ballarpur Industries Limited
aShWIn ManKeShWaR R. R. VeDeRah
Partner Vice Chairman
Membership No. 046219
B. haRIhaRan
For and on behalf of
Group Director (Finance)
K. K. ManKeShWaR & co.
Chartered Accountants BIMal KhanDelWal
FRN: 106009W Chief Financial Officer

New Delhi, dated the aKhIl MahaJan

23rd May, 2017 Company Secretary

82 BALLARPUR INDUSTRIES LIMITED

ANNUAL REPORT 2016-17
 Form aOc-I
(Persuant to first proviso to sub section (3) of section 129 read with rule 5 of companies (account) rule, 2014)
statement containing salient features of the financial statement of subsidiaries

Name of subsidiary Ballarpur BILT Paper Ballarpur Premier avantha BILT sabah Ballarpur BILT
International B.V. (Formerly Paper Tissues agritech Graphic Forest speciality General
holdings known as holding India Limited Paper Industries Paper Trading
B.V. Ballarpur B.V. Limited (Formely Products sdn.Bhd. holdings (FZE)
International known Limited B.V.
Graphic Paper as BILT
holdings B.V.) Tree Tech
Limited)
Financial Year of the
subsidiary ended on 31.03.2017 31.03.2017 31.03.2017 31.03.2017 31.03.2017 31.03.2017 31.03.2017 31.03.2017 31.03.2017
reporting currency USD USD USD INR INR INR RM USD USD
- Exchange Rate- Balance
Sheet Items (Closing Rate) 64.88 64.88 64.88 1 1 1 14.67 64.88 64.88
- Exchange Rate- Profit &
Loss Items (Average Rate) 67.15 67.15 67.15 1 1 1 16.01 67.15 67.15
capital
- Equity Share Capital 73,204 5,418 70,536 562 108 55,005 179,082 13 27
- Preference Share Capital - - - - - - - - -
reserves (9,206) 432,418 216,626 1,116 (255) 22,466 (62,211) (270) 220
Total assets 174129 454,025 432,047 4,549 14,021 803,246 259,559 27 293
Total Liabilities 174129 454,025 432,047 4,549 14,021 803,246 259,559 27 293
Investment
(Except investment in
Subsidiaries)
- Government or Trust
Securities - - - - - - - - -
- Shares, Debentures or
Bonds - - - - - 3,305 - - -
Turnover (including Other
Income) - - - 5,430 6,596 176,879 11,016 - 5,035
Profit Before Taxation (7,743) 10,786 (4,544) 30 (656) (105,374) (25,408) (28) 228
Provision for Taxation
- Current Tax - - - - 18 - - - -
- MAT Entitlement Credit - - - - - - - - -
- Deferred Tax - - - 11 - (11,010) 17,287 - -
- Excess provision relating to
earlier years - - - - - - - - -
Profit after Taxation (7,743) 10,786 (4,544) 19 (674) (94,364) (42,696) (28) 228
Proposed Dividend - - - - - - - - -
share holding Percentage in
the subsidiary 100 62.21 (a) 100 (b) 100 91.67 100 (ç) 98.08 (ç) 100 100 (d)
Notes
a. Held through Ballarpur International Holdings B.V.
b. Held through BILT Paper B.V. (Formerly known as Ballarpur International Graphic Paper Holdings B.V.)
c. Held through Ballarpur Paper Holdings B.V.
d. Held through Ballarpur Speciality Paper Holdings B.V.

Financials 83
ANNUAL REPORT 2016-17
independent auditors’ report
To ThE MEMBERS of BALLARPUR INDUSTRIES LIMITED
Report on the Consolidated Ind AS financial Statements
We have audited the accompanying Consolidated Ind AS financial statements of Ballarpur Industries Limited (‘the Holding Company’) and
its subsidiaries ( the Holding Company and its subsidiaries together referred to as “the Group”), which comprise the consolidated balance
sheet as at 31st March 2017, the consolidated statement of profit and loss (including other comprehensive income), the consolidated cash
flow statement and the consolidated statement of changes in equity for the year then ended and a summary of the significant accounting
policies and other explanatory information (herein after referred to as “the consolidated Ind AS financial statements”).
Management’s Responsibility for the Consolidated Ind AS financial Statements
The Holding Company’s Board of Directors is responsible for the preparation of the consolidated Ind AS financial statements in terms of
the requirements of the Companies Act, 2013 (“the Act”) that give a true and fair view of the consolidated financial position, consolidated
financial performance including other comprehensive income, consolidated cash flows and consolidated changes in equity of the Group
in accordance with the accounting principles generally accepted in India, including the Indian Accounting Standards (Ind AS) prescribed
under Section 133 of the Act read with relevant rules issued thereunder. The Holding Company’s Board of Directors is also responsible
for ensuring accuracy of records including financial information considered necessary for the preparation of consolidated Ind AS financial
statements. The respective Board of Directors of the Companies included in the Group are responsible for maintenance of adequate
accounting records in accordance with the provisions of the Act for safeguarding of the assets of the Group and for preventing and detecting
frauds and other irregularities; the selection and application of appropriate accounting policies; making judgments and estimates that
are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls, that were operating
effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the
consolidated Ind AS financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or
error, which have been used for the purpose of preparation of the consolidated Ind AS financial statements by the Directors of the Holding
Company, as aforesaid.
Auditor’s Responsibility
Our responsibility is to express an opinion on these consolidated Ind AS financial statements based on our audit. While conducting the
audit, we have taken into account the provisions of the Act, the accounting and auditing standards and matters which are required to be
included in the audit report under the provisions of the Act and the Rules made thereunder.
We conducted our audit of the consolidated Ind AS financial statements in accordance with the Standards on Auditing specified under
Section 143(10) of the Act. Those Standards require that we comply with ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether the consolidated Ind AS financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and the disclosures in the consolidated Ind AS
financial statements. The procedures selected depend on the auditor’s judgement, including the assessment of the risks of material
misstatement of the consolidated Ind AS financial statements, whether due to fraud or error. In making those risk assessments, the
auditor considers internal financial control relevant to the Holding Company’s preparation of the consolidated Ind AS financial statements
that give a true and fair view in order to design audit procedures that are appropriate in the circumstances. An audit also includes
evaluating the appropriateness of the accounting policies used and the reasonableness of the accounting estimates made by the Holding
Company’s Board of Directors, as well as evaluating the overall presentation of the consolidated Ind AS financial statements.
We believe that the audit evidence obtained by us is sufficient and appropriate to provide a basis for our audit opinion on the consolidated
Ind AS financial statements.
asis for ualified pinion
We draw attention to Note 4 of the consolidated Ind AS financial statements regarding the liability for the put option on the roup
pertaining to subsidiaries to be provided on the settlement.
Qualified Opinion
In our opinion and to the best of our information and according to the explanations given to us, except for the effects of the matter
described in the Basis for Qualified Opinion paragraph above, the aforesaid consolidated Ind AS financial statements give the information
required by the Act in the manner so required and give a true and fair view in conformity with the accounting principles generally
accepted in India including the Ind AS, of the consolidated financial position of the Group as at 31 March, 2017, and its consolidated
financial performance including other comprehensive income, its consolidated cash flows and the changes in equity for the year ended
on that date.
mphasis of atter
We draw attention to Note 47 of the consolidated Ind AS financial Statement regarding invocation of Strategic Debt Restructuring by the
Lenders due to non-fulfillment of debt obligations. On the basis of projected business plan as agreed with the lenders, these financial
statements have been prepared on a going concern basis. These financial statements do not include any adjustments relating to the
recoverability and classification of recorded asset amounts and classification of liabilities that may be necessary if the roup is unable to
continue as going concern.

84 BALLARPUR INDUSTRIES LIMITED

ANNUAL REPORT 2016-17
independent auditors’ report
Our opinion is not modified/qualified in respect of this matter.
Other Matter
We did not audit the Ind AS financial statements of Kamlapuram Unit of the Group included in the Company Ind AS financial statements
of the Company whose Ind AS financial statements reflect total assets of ` 31,043.98 lacs as at 31st March, 2017 and total revenues of
` 118.38 lacs for the year ended on that date, as considered in the consolidated Ind AS financial statements. The Ind AS financial statements
of this Unit has been audited by the Unit Auditor whose report has been furnished to us, and our opinion in so far as it relates to the
amounts and disclosures included in respect of this Unit is solely on the report of such Unit Auditor.
Our opinion is not modified/qualified in respect of this matter.
Report on other Legal and Regulatory Requirements
1. As required by Section 143(3) of the Act, we report, to the extent applicable, that:
a) We have sought and, obtained all the information and explanations which to the best of our knowledge and belief were necessary
for the purposes of our audit of the aforesaid consolidated Ind AS financial statements.
b) In our opinion, except for the effects of the matter described in the Basis for Qualified Opinion paragraph above, proper books of
account as required by law relating to preparation of the aforesaid consolidated Ind as financial statements have been kept so
far as it appears from our examination of those books and the report of the other auditor;
c) The consolidated balance sheet, the consolidated statement of profit and loss (including other comprehensive income),
the consolidated cash flow statements and the consolidated statement of changes in equity dealt with by this Report are in
agreement with the relevant books of account maintained for the purpose of preparation of the consolidated Ind AS financial
statements;
d) In our opinion, except for the effects of the matter described in the Basis for Qualified Opinion paragraph above, the aforesaid
consolidated Ind AS financial statements comply with the Accounting Standards specified under Section 133 of the Act read with
relevant rule issued thereunder;
e) The matter described in the Basis for Qualified Opinion paragraph above, in our opinion, may have an adverse effect on the
functioning of the Group.
f) On the basis of the written representations received from the directors of the Holding Company as on 31st March 2017, and
taken on record by the Board of Directors of the Holding Company and the report of the statutory auditors of its subsidiary
companies incorporated in India, none of the directors of the Group Companies incorporated in India is disqualified as on
31st March 2017 from being appointed as a director in terms of Section 164 (2) of the Act;
g) With respect to the adequacy of the internal financial controls over financial reporting of the Group and the operating
effectiveness of such controls, refer to our separate report in “Annexure A”; and
h) With respect to the other matters to be included in the Auditor’s Report in accordance with Rule 11 of the Companies (Audit and
Auditors) Rules, 2014, in our opinion and to the best of our information and according to the explanations given to us:
i. the consolidated Ind AS financial statements disclose the impact of pending litigations on its financial position in its
consolidated Ind AS financial statements – Refer Note 44 to the consolidated Ind AS financial statements;
ii. the Group has made provision, as required under the applicable law or accounting standards, for material foreseeable
losses, if any, on long-term contracts including derivative contracts – Refer Note 24, 28 & 30 to the consolidated Ind AS
financial statements;
iii. there has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund
by the Group; and
iv. the Group has provided requisite disclosures in its consolidated Ind AS financial statements as to holdings as well as dealings
in Specified Bank Notes during the period from 8 November, 2016 to 30 December, 2016 and these are in accordance with
the books of accounts maintained by the Group. Refer Note 45 to the Consolidated Ind AS financial statements.

AShWIN MANKEShWAR
artner
Membership No. 046219
For and on behalf of
K. K. Mankeshwar & Co.,
Chartered Accountants
FRN: 106009W

New Delhi, dated the

23rd May, 2017

Consolidated FinanCials 85
ANNUAL REPORT 2016-17
anneXure - a to tHe independent auditors’ report
Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section 143 of the Companies Act, 2013 (“the Act”)

In conjunction with our audit of the consolidated Ind AS financial statements of the Company as of and for the year ended 31 March 2017,
we have audited the internal financial controls over financial reporting of Ballarpur Industries Limited (“the Holding Company”) and its
subsidiary companies which are companies incorporated in India, as of that date.

Management’s Responsibility for Internal financial Controls

The respective Board of Directors of the Holding Company and its subsidiary companies, which are companies incorporated in India,
are responsible for establishing and maintaining internal financial controls based on the internal control over financial reporting criteria
established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal
Financial Controls over Financial Reporting issued by the Institute of Chartered Accountants of India (“ICAI’). These responsibilities include
the design, implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the
orderly and efficient conduct of its business, including adherence to Company’s policies, the safeguarding of its assets, the prevention and
detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable financial
information, as required under the Act.

Auditors’ Responsibility

Our responsibility is to express an opinion on the Company's internal financial controls over financial reporting based on our audit. We
conducted our audit in accordance with the Guidance Note on Audit of Internal Financial Controls over Financial Reporting (the “Guidance
Note”) issued by the ICAI and the Standards on Auditing, issued by the ICAI and deemed to be prescribed under section 143(10) of the Act,
to the extent applicable to an audit of internal financial controls, both issued by the ICAI. Those Standards and the Guidance Note require
that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether adequate
internal financial controls over financial reporting was established and maintained and if such controls operated effectively in all material
respects.

Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls system over
financial reporting and their operating effectiveness. Our audit of internal financial controls over financial reporting included obtaining
an understanding of internal financial controls over financial reporting, assessing the risk that a material weakness exists, and testing and
evaluating the design and operating effectiveness of internal control based on the assessed risk. The procedures selected depend on the
auditors’ judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or
error.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the Company’s
internal financial controls system over financial reporting.

Meaning of Internal Financial Controls over Financial Reporting

A Company's internal financial control over financial reporting is a process designed to provide reasonable assurance regarding the
reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted
accounting principles. A Company's internal financial control over financial reporting includes those policies and procedures that (1)
pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the
assets of the Company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial
statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the Company are being
made only in accordance with authorizations of management and directors of the Company; and (3) provide reasonable assurance
regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the Company's assets that could have a
material effect on the financial statements.

Inherent Limitations of Internal Financial Controls over Financial Reporting

Because of the inherent limitations of internal financial controls over financial reporting, including the possibility of collusion or improper
management override of controls, material misstatements due to error or fraud may occur and not be detected. Also, projections of any
evaluation of the internal financial controls over financial reporting to future periods are subject to the risk that the internal financial
control over financial reporting may become inadequate because of changes in conditions, or that the degree of compliance with the
policies or procedures may deteriorate.

86 BALLARPUR INDUSTRIES LIMITED

ANNUAL REPORT 2016-17
anneXure 'a' to independent auditors' report
opinion

In our opinion, the Holding Company and its Subsidiary Companies, which are companies incorporated in India, have, in all material
respects, an adequate internal financial controls system over financial reporting and such internal financial controls over financial
reporting were operating effectively as at 31 March 2017, based on the internal control over financial reporting criteria established by the
Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls
Over Financial Reporting issued by the ICAI.

AShWIN MANKEShWAR
artner
Membership No. 046219
For and on behalf of
K. K. Mankeshwar & Co.,
Chartered Accountants
FRN: 106009W

New Delhi, dated the

23rd May, 2017

Consolidated FinanCials 87
ANNUAL REPORT 2016-17
ConsoLidated BaLanCe sHeet AS AT MArch 31, 2017

` in Lacs
Note No. As at As at As at
31st March-2017 31st March-2016 1st April-2015

ASSETS
(1) Non-Current Assets
(a) Property, Plant and Equipment 5 955,799 1,026,266 1,037,159
(b) Capital work-in-progress 6 35,710 35,259 23,820
(c) Other intangible assets 7 6,581 7,854 6,339
(d) Intangible assets under development 8 3,144 4,300 192
(e) Biological assets other than bearer plants 9 68,257 70,472 74,243
(f) Financial Assets
(i) Investments 10 4,056 5,016 4,056
(ii) Others 11 5,044 5,302 4,695
(g) Other non-current assets 12 34,048 49,152 44,746
(2) Current Assets
(a) Inventories 13 68,093 153,952 143,006
(b) Financial Assets
(i) Trade receivables 14 7,060 36,588 35,223
(ii) Cash and cash equivalents 15 11,014 24,242 2,765
(iii) Bank balances other than (ii) above 16 1,284 979 21,309
(iv) Loans 17 59,645 43,398 13,693
(v) Others 18 2,647 6,072 7,181
(c) Current tax assets (Net) 19 806 634 781
(d) Other current assets 20 56,976 39,296 35,706
(e) Assets held for sale 2 16 13
Total Assets 1,320,166 1,508,798 1,454,927

EQUITY AND LIABILITIES

Equity
(a) Equity Share Capital 21 13,112 13,112 13,112
(b) Other Equity 106,190 272,073 321,408
(c) Non-Controlling Interest 48,262 98,256 109,482
Liabilities
(1) Non-Current Liabilities
(a) Financial Liabilities
(i) Borrowings 22 351,076 413,724 327,680
(ii) Other financial liabilities 23 3,834 4,740 4,674
(b) Provisions 24 9,025 8,925 7,777
(c) Deferred Tax Liabilities (Net) 25 13,306 8,536 9,488
(d) Other non-current liabilities 26 22 23 1
(2) Current Liabilities
(a) Financial Liabilities
(i) Borrowings 22 385,608 305,974 307,338
(ii) Trade payables 27 97,534 252,279 229,206
(iii) Other financial liabilities 28 274,282 114,125 105,452
(b) Other current liabilities 29 9,997 11,934 14,421
(c) Provisions 30 4,498 3,686 3,634
(d) Current tax liabilities(net) 31 3,420 1,411 1,254
Total Equity and Liabilities 1,320,166 1,508,798 1,454,927
Significant Accounting Policies and
Notes to Consolidated Ind AS Financial Statements 1-52

As per our report of even date attached For Ballarpur Industries Limited
asHWin ManKesHWar r. r. VederaH
Partner Vice Chairman
Membership No. 046219
B. HariHaran
For and on behalf of
Group Director (Finance)
K. K. ManKesHWar & Co.
Chartered Accountants BiMaL KHandeLWaL
FRN: 106009W Chief Financial Officer

New Delhi, dated the aKHiL MaHaJan

23rd May, 2017 Company Secretary

88 BALLARPUR INDUSTRIES LIMITED

ANNUAL REPORT 2016-17
stateMent oF ConsoLidated proFit and Loss
FOr ThE FINANcIAL
YEAr ENDED MArch 31, 2017

` in Lacs
NOTE NO. Year ended Year ended
31.03.2017 31.03.2016

I Revenue from operations 32 216,706 447,297

II Other income 33 6,534 4,454
III Total Income (I+II) 223,240 451,751
IV Expenses
Cost of materials consumed 34 107,508 228,339
Purchase of stock in trade 5,655 10,752
Changes in inventories of finished goods, stock-in -trade and 35 23,028 8,431
work- in-progress
Employee benefits expense 36 30,620 29,957
Finance costs 37 90,084 45,917
Depreciation and amortisation expense 5&7 27,399 26,480
Excise duty 11,317 23,842
Other expenses 38 54,027 73,648
Total expenses (IV) 349,638 447,366
V Profit/ (loss) before exceptional items and tax (III- IV) (126,398) 4,386
VI Exceptional items 39 30,630 (31)
VII Profit/ (loss) before tax (V-VI) (157,028) 4,41 7
VIII Tax expense:
(1) Current tax - 627
(2) Deferred tax (13,541) (965)
(3) MAT credit entitlement - (344)
Total Tax Expense (VIII) (13,541) (682)
IX Profit/ (loss) for the year from continuing operations (VII-VIII) (143,487) 5,099
X Profit/ (loss) for the year from discontinuing operations before tax (25,408) (32,932)
XI Tax expense on discontinued operation 17,287 94
XII Profit/ (loss) for the year from discontinuing operations after tax (X-XI) (42,696) (33,026)
XIII Profit/ (loss) for the year (IX+XII) (186,183) (27,927)
XIV Other Comprehensive Income Items that will not be reclassified to profit
and loss
(i) Re-measurement gains / (losses) on defined benefit plans 137 (789)
(ii) Income tax effect on above - -
Total Other comprehensive income 137 (789)
XV Total Comprehensive Income for the year (XIII+XIV) (Comprising profit and (186,045) (28,716)
other comprehensive income for the year)
XVI Net Profit attributable to
a) Owners of the Company (136,179) (21,001)
b) Non - Controlling Interest (50,003) (6,926)
XVII Other comprehensive Income attributable to
a) Owners of the Company 137 (789)
b) Non - Controlling Interest - -
XVIII Total comprehensive Income attributable to
a) Owners of the Company (136,042) (21,790)
b) Non - Controlling Interest (50,003) (6,926)
XIX Earnings per equity share (for continuing operation):
(1) Basic (in `) (16.81) 0.31
(2) Diluted (in `) (16.81) 0.31
XX Earnings per equity share (for discontinuing operation):
(1) Basic (in `) (3.96) (3.52)
(2) Diluted (in `) (3.96) (3.52)
XXI Earnings per equity share
(1) Basic (in `) (20.77) (3.20)
(2) Diluted (in `) (20.77) (3.20)
Significant Accounting Policies and
Notes to Consolidated Ind AS Financial Statements 1-52

As per our report of even date attached For Ballarpur Industries Limited
asHWin ManKesHWar r. r. VederaH
Partner Vice Chairman
Membership No. 046219
B. HariHaran
For and on behalf of
Group Director (Finance)
K. K. ManKesHWar & Co.
Chartered Accountants BiMaL KHandeLWaL
FRN: 106009W Chief Financial Officer

New Delhi, dated the aKHiL MaHaJan

23rd May, 2017 Company Secretary

Consolidated FinanCials 89
ANNUAL REPORT 2016-17
ConsoLidated CasH FLoW stateMent
FOr ThE FINANcIAL
YEAr ENDED MArch 31, 2017

` in Lacs
31st March 2017 31st March 2016

cASh FLOwS FrOM OPErATINg AcTIvITIES

Net Profit before tax, minority interest and appropriations (182,436) (28,515)
Adjustments for:
(Profit) / Loss on sale of Assets (net) (3,494) (2,802)
Unspent Liabilities and Excess Provisions of earlier years written back (91) (506)
Gain/(Loss) on changes in fair valuation of biological Assets (6,691) 6,511
Depreciation & amortisation expenses 39,139 40,794
Impairment of Assets 25,149 -
Inventory written off 380 -
Interest Received (84) -
Assets discarded - 5
Finance costs (net) 97,833 52,177
152,141 96,179
Operating Profit before working capital changes (30,295) 67,664
Adjustment for Working Capital Changes :
(Increase)/decrease in trade receivable 29,528 (93)
(Increase)/decrease in loans, advances and other currrent assets (15,513) (38,454)
(Increase)/decrease in inventory 80,707 (10,746)
Increase/(decrease) in liabilities and provisions (146,843) 6,302
(52,121) (42,991)
Cash generated from operations (82,416) 24,673
Income tax refund/(paid) 1,837 (1,645)
Net cash flow from operating activities (A) (80,579) 23,028

cASh FLOw FrOM INvESTINg AcTIvITIES

Increase in fixed assets, capital work-in-progress and capital advances (13,772) (59,431)
Proceed from Sale of property plant and equipment 2,285 2,486
Interest received 94 495
(Increase)/decrease in Investment 960 (960)
(Increase)/decrease in other bank balances (305) 20,328
Net cash flow from investing activities (B) (10,738) (37,082)

cASh FLOw FrOM FINANcINg AcTIvITIES

Premium in purchase of ZCCB (0) (19,343)
Increase/(decrease) in long-term borrowings 135,577 119,646
Payment for buy back (optional/convertible) (2) (4)
Dividend and distribution on unsecured subordinated perpetual capital Securities 0 (4,841)
(including dividend tax)
Interest paid (Net) (65,994) (49,065)
Dividend paid (13) (3,230)
Net cash flow from financing activities (c) 69,568 43,163
Net increase/(decrease) in cash and cash equivalents (A+B+c) (21,749) 29,109
Cash and cash equivalents at begining of reporting year 24,242 2,765
Impact of Foreign Currency Translation Reserve 8,521 (7,632)
cash and cash equivalents (closing balance) 11,014 24,242

Significant Accounting Policies and 1-52

Notes to Consolidated Ind AS Financial Statements

As per our report of even date attached For Ballarpur Industries Limited
asHWin ManKesHWar r. r. VederaH
Partner Vice Chairman
Membership No. 046219
B. HariHaran
For and on behalf of
Group Director (Finance)
K. K. ManKesHWar & Co.
Chartered Accountants BiMaL KHandeLWaL
FRN: 106009W Chief Financial Officer

New Delhi, dated the aKHiL MaHaJan

23rd May, 2017 Company Secretary

90 BALLARPUR INDUSTRIES LIMITED

ANNUAL REPORT 2016-17
 ConsoLidated stateMent oF CHanGes in eQuitY For tHe Year ended MarCH 31, 2017
A. EQUITY ShArE cAPITAL
For the year ended 31st March 2016 ` in Lacs
Balance as at changes in equity share Balance as at
1st April 2015 capital during the year 31st March 2016
13,112 - 13,112
For the year ended 31st March 2017 ` in Lacs
Balance as at changes in equity share Balance as
1st April 2016 capital during the year at 31st march 2017
13,112 - 13,112
B. OThEr EQUITY ` in Lacs
Particulars Non Subordinate capital capital Share Preference Debenture general retained Items of Other comprehensive Income Total
controlling perpetual reserve on reserve Premium Share capital redemption reserve Earnings re-meas. of the net Foreign currency
Interest capital consolidation reserve reserve reserve defined benefit Plans translation reserve
securities*
Balance as at April 1, 2015 109,482 125,358 35,882 1,515 26,798 7,385 17,750 80,810 58,834 (414) (32,510) 430,890
Profit/ (loss) for the year (6,926) (21,001) (789) (28,716)
Transfer to reserves - - - (4,750) - 4,750 -
Adjustment for Change in Minority Interest - (19,343) - (19,343)
Foreign Currency Translation Reserve 632 7,154 (4,966) 2,820
Distribution to Subordinated Perpetual (4,932) (8,738) (13,670)
Capital Securities
Tax on distributed profits (1,652) (1,652)
Balance as at March 31, 2016 98,256 132,512 16,539 1,515 26,798 7,385 13,000 80,810 32,193 (1,203) (37,476) 370,329
Profit/ (loss) for the year (50,003) (136,179) 137 (186,045)
Transfer to Debenture reserves 3,251 (3,251) -
Foreign Currency Translation Reserve & Etc. 3,859 (2,771) - (17,920) (16,832)
Distribution to Subordinated Perpetual (3,850) (9,150) (13,000)
Capital Securities
Balance as at March 31, 2017 48,262 129,741 16,539 1,515 26,798 7,385 16,251 80,810 (116,385) (1,066) (55,396) 154,452
*During the year ended 30th June, 2012, the step down subsidiary of Company, BILT Paper B.V. (formerly known as Ballarpur International Graphic Paper Holdings B.V.) raised USD 200 Million through issue
of Unsecured Dollar denominated 9.75% Subordinated Perpetual Capital Securities (The Securities). These Securities are perpetual in nature with no maturity or redemption and are callable only at the option
of BILT Paper B.V. in the 5th/10th year from the date of allotment of Securities and thereafter on every interest payment date. As these Securities are pertetual in nature and ranked senior only to the Share
Capital of BILT Paper B.V. and are therefore considered to be in nature of equity instrument and are not considered as "Debt"and the distribution on such Securities is not considered under Ïnterest". BILT
Paper B.V. may at its sole discretion, opt to defer payment of Interest on such Securities.
Significant Accounting Policies and Notes to Consolidated Ind AS Financial Statements 1-52
As per our report of even date attached For Ballarpur Industries Limited
asHWin ManKesHWar r. r. VederaH
Partner Vice Chairman
Membership No. 046219
B. HariHaran
For and on behalf of
Group Director (Finance)
K. K. ManKesHWar & Co.
Chartered Accountants BiMaL KHandeLWaL

Consolidated FinanCials
ANNUAL REPORT 2016-17
FRN: 106009W Chief Financial Officer

New Delhi, dated the aKHiL MaHaJan

91
23rd May, 2017 Company Secretary
ConsoLidated notes to FinanCiaL stateMents
BALLArPUr INDUSTrIES LIMITED
1 cOMPANY OvErvIEw
Ballarpur Industries Limited (“BILT” or the company), a public limited company, together with its subsidiaries (collectively referred to
as the “Group”) is engaged in the business of manufacturing and selling of Paper, pulp and paper products. BILT’s consolidated paper
manufacturing operations span across six production units, five of which are in India and one in Malaysia. The Indian units are located
at Ballarpur (Maharastra), Bhigwan (Maharastra), Ashti (Maharastra) and Sewa (Orissa), Shree Gopal (Haryana). The Rayon Grade Pulp
manufacturing unit is located at Kamlapuram (Telangana). The Malaysian unit is located in the State of Sabah.
The Consolidated Ind AS financial statements were authorised for issue in accordance with a resolution of the directors on 23rd May, 2017.
2 BASIS OF PrEPArATION AND USE OF ESTIMATES
2.1 BASIS OF PrEPArATION OF cONSOLIDATED FINANcIAL STATEMENTS
The Consolidated Ind AS Financial statements (FS) of the company have been prepared in accordance with Indian Accounting Standards
(Ind AS) notified under the Companies (Indian Accounting Standards) Rules, 2015 (as amended) and presentation requirements of Division
II of Schedule III to the Companies Act, 2013, (Ind AS compliant Schedule III), as applicable to the Financial statements.
For all periods up to and including the year ended 31st March 2016, the Company prepared its consolidated Ind AS financial statements
in accordance with Indian GAAP, including accounting standards notified under the section 133 of the Companies Act 2013, read together
with paragraph 7 of the Companies (Accounts) Rules, 2014. These consolidated Ind AS financial statements for the year ended 31st March
2017 are the first the Company has prepared in accordance with Ind-AS.
The Company has consistently applied the accounting policies used in the preparation of its opening IND-AS Balance Sheet at April 1,
2015 throughout all periods presented, as if these policies had always been in effect and are covered by IND AS 101 ‘’First-time adoption
of Indian Accounting Standards’’. The transition was carried out from accounting principles generally accepted in India (‘’Indian GAAP’’)
which is considered as the previous GAAP, as defined in IND AS 101. The reconciliation of effects of the transition from Indian GAAP on
the equity as at April 1, 2015 and March 31, 2016 and on the net profit and cash flows for the year ended March 31, 2016 is disclosed in
Note no 50 to these financial statements.
The Consolidated Ind AS Financial statements have been prepared on a historical cost basis, except for the following assets and liabilities
which have been measured at fair value:
• Land and buildings classified as property, plant and equipment;
• Derivative financial instruments;
• Certain financial assets and liabilities measured at fair value (refer accounting policy regarding financial instruments).
The Consolidated Ind AS Financial Statements comprise of the following statements of Ballarpur Industries Limited (the company) for the
year ended 31st March, 2017 and its following Subsidiaries.

Name of the company country of Proportion of ownership interest

Incorporation either directly or through subsidiary
as on
31.03.2017 31.03.2016
Subsidiary
Avantha Agritech Limited (Formely known as BILT Tree Tech Limited) India 91.67% 91.67%
Ballarpur International Limited Netherlands 100% 100%
Ballarpur Speciality Paper Holdings B.V. Netherlands 100% 100%
Premier Tissues India Limited India 100% 100%
Step down Subsidiary
BILT Paper B.V. (formerly known as Ballarpur International Graphics Netherlands 62.21% 62.21%
Paper Holdings B.V.) (i)
Ballarpur Paper Holdings B.V. (ii) Netherlands 100% 100%
BILT Paper Holdings B.V. (iii) India 100% 100%
Sabah Forest Industries Sdn. Bhd. (iv) Malaysia 98.08% 98.08%
BILT General Trading (FZE) UAE 100% -
(i) Held through Ballarpur International Holdings B.V.
(ii) Held through BILT Paper B.V. (formarly known as Ballarpur International Graphics Paper Holdings B.V.)
(iii) Held through Ballarpur Paper Holdings B.V.
a. The Financial Statements of all Indian subsidiaries are prepared in compliance with the Indian Accounting Standards (Ind
AS) notified under the Companies (Indian Accounting Standards) Rules, 2015 (as amended) and presentation requirements of
Division II of Schedule III to the Companies Act, 2013, (Ind AS compliant Schedule III), as applicable to the Financial statements
and those of the foreign subsidiaries have been prepared in compliance with the local laws and applicable accounting
standards.
b. The Group has disclosed only such Policies and Notes from the individual financial statements, which fairly cover the required
disclosures.

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2.2 USE OF ESTIMATES
The preparation of Consolidated Ind AS Financial Statements requires estimates and assumptions to be made that affect the reported
amount of assets and liabilities as at the date of the Consolidated Ind AS Financial Statements and the reported amount of revenues and
expenses during the reporting period/year. The difference between the actual results and estimates are recognised in the year in which
the results are known/materialise.
All Assets and liabilities have been classified as current or non-current as per the Company’s normal operating cycle and other criteria
set out in the schedule III to the Companies Act, 2013. Based on the nature of products and the time between the acquit ion of assets
for processing and their realisation in cash and cash equivalent, the Company has ascertained its operating cycle as 12 months for the
purpose of current/non-current classification of assets and liabilities
3 SIgNIFIcANT AccOUNTINg POLIcIES
3.1 cUrrENT vErSUS NON-cUrrENT cLASSIFIcATION
The Company presents assets and liabilities in the balance sheet based on current/ non-current classification. An asset is classified as
current when it is:
• Expected to be realised or intended to sold or consumed in normal operating cycle
• Held primarily for the purpose of trading
• Expected to be realised within twelve months after the reporting period, or
• Cash or cash equivalent unless restricted from being exchanged or used to settle a liability for at least twelve months after the
reporting period
All other assets are classified as non-current.
A liability is current when:
• It is expected to be settled in normal operating cycle
• It is held primarily for the purpose of trading
• It is due to be settled within twelve months after the reporting period, or
• There is no unconditional right to defer the settlement of the liability for at least twelve months after the reporting period
The Company classifies all other liabilities as non-current. Deferred tax assets and liabilities are classified as non-current assets and
liabilities.
3.2 FAIr vALUE MEASUrEMENT
Fair value is the price that would be received to sell an asset or settle a liability in an ordinary transaction between market participants
at the measurement date. The fair value of an asset or a liability is measured using the assumption that market participants would use
when pricing an asset or liability acting in their best economic interest. The fair value of plants and equipments as at transition date
have been taken based on valuation performed by an independent technical expert. The Company used valuation techniques, which were
appropriate in circumstances and for which sufficient data were available considering the expected loss/ profit in case of financial assets
or liabilities.
3.3 PrOPErTY, PLANT AND EQUIPMENT
On transition to IND AS, the Company has adopted optional exception under IND AS 101 to measure Property, Plant and Equipment at
fair value. Consequently the fair value has been assumed to be deemed cost of Property, Plant and Equipment on the date of transition.
Subsequently Property, Plant and Equipment other than land, are carried at cost less accumulated depreciation and accumulated
impairment losses, if any. In case of land, it shall be carried at revalued amount, being its fair value at the date of revaluation less any
subsequent accumulated depreciation and subsequent accumulated impairment losses if any. Cost includes expenditure that is directly
atttributable to the acquisition of the items.
Subsequent costs are included in the asset's carrying amount or recognised as a separate asset, as appropriate, only when it is probable
that future economic benefits associated with the item will flow to the Company and the cost of the item can be measured reliably. The
carrying amount of the replaced part is derecognised. All other repairs and maintenance are charged to the income statement during the
financial period in which they are incurred.
Depreciation
Assets are depreciated to the residual values on a straight line basis over the estimated useful lives based on technical estimates which
are different from one specified in Schedule II of the Companies Act, 2013. Asset's depreciation methods, residual values and useful lives
are reviewed at each financial year end considering the physical condition of the assets and benchmarking analysis or whenever there are
indicators for review of residual value and useful life. Freehold land is not depreciated. Estimated useful lives of the assets are as follows:
categories of Assets Estimated useful life in years
Factory Building 30
Office Buildings 40
Plant & Machinery
Plant and Machinery 1-40
Equipments 1-15
Other equipment, operating and office equipment
Computer equipment 1-6
Office furniture and equipment 1-20
Vehicles 1-10
Railway Siding 3-15

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It is believed that the useful lives as given above represents the period over which management expects to use these assets.
The gain or loss arising on the disposal or retirement of an item of property, plant and equipment is determined as the difference between
the sales proceeds and the carrying amount of the asset and is recognised in the Statement of Profit and Loss on the date of disposal or
retirement.
Capital work in progress includes cost of property, plant and equipment under installation / under development as at the balance sheet
date.
Intangible Asset under development includes cost of development of new intangible assets to complete the assets as at the balance sheet
date.
Capital Expenditure on tangible assets for research and development is classified under property, plant and equipment and is depreciated
on the same basis as other property plant and equipment.
3.4 INTANgIBLE ASSETS
Intangible assets that are acquired by the Company, which have finite useful lives, are measured at cost less accumulated amortization
and accumulated impairment losses (if any). Costs include expenditure that is directly attributable to the acquisition of the intangible
assets.
(i) Subsequent Expenditure
Subsequent expenditure is capitalized only when it increases the future economic benefits embodied in the specific asset to which
it relates. All other expenditure, including expenditure on internally generated goodwill and brands, are recognized in profit or loss
as incurred.
(ii) Amortization of intangible assets with finite useful lives
Amortization is recognized in profit or loss on a straight-line basis over the estimated useful lives of intangible assets from the date
that they are available for use. Expenditure on specialised software are amortised over seven years.
3.5 rESEArch & DEvELOPMENT cOST
Research costs are expensed as incurred. Development expenditures on an individual project are recognised as an intangible asset when
the Company can demonstrate:
• The technical feasibility of completing the intangible asset so that the asset will be available for use or sale;
• Its intention to complete and its ability and intention to use or sell the asset;
• there is an ability to use or sell the asset;
• How the asset will generate future economic benefits;
• adequate technical, financial and other resources to complete the asset
• The ability to measure reliably the expenditure during development;
Following initial recognition of the development expenditure as an asset, the asset is carried at cost less any accumulated amortisation
and accumulated impairment losses (if any). Amortisation of the asset begins when development is complete and the asset is available
for use. It is amortised over the period of expected future benefit. Amortisation expense is recognised in the statement of profit and loss.
During the period of development, the asset is tested for impairment annually.
3.6 IMPAIrMENT OF NON-FINANcIAL ASSETS
Assets that have an indefinite useful life, for example goodwill, are not subject to amortisation and are tested annually for impairment and
additionally whenever there is a triggering event for impairment. Assets that are subject to amortisation and depreciation are reviewed
for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. An impairment
loss is recognised for the amount by which the asset’s carrying amount of cash generating units exceeds its recoverable amount. The
recoverable amount of a cash generating unit is the higher of cash generating unit’s fair value less cost of disposal and its value in use.
3.7 INvENTOrIES
Inventories are valued at the lower of cost or net realisable value.
Costs incurred in bringing each product to its present location and condition is accounted for as follows:
• Raw materials, Stores, Spare Parts, Chemicals: are valued at cost, computed on weighted average basis.
• Finished goods and work in progress: are valued at cost or net realisable value, whichever is lower. In the case of finished goods
and work in process cost comprises of material, direct labour and applicable overhead expenses. The cost of finished goods also
includes applicable excise duty.
• Traded goods: cost includes cost of purchase and other costs incurred in bringing the inventories to their present location and
condition. Cost is determined on weighted average basis.
Net realisable value is the estimated selling price in the ordinary course of business, less estimated costs of completion and the estimated
costs necessary to make the sale.
3.8 FOrEIgN cUrrENcIES
The Company’s financial statements are presented in INR, which is functional currency of the Company. For each entity the Company
determines the functional currency and items included in the financial statements of each entity are measured using that functional
currency of the parent’s company. The Company uses the direct method of consolidation and on disposal of a foreign operation the gain
or loss that is reclassified to profit or loss reflects the amount that arises from using this method.
Transactions and balances
Transactions in foreign currencies are initially recorded by the Company’s entities at their respective functional currency spot rates at the
date the transaction first qualifies for recognition.

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Monetary assets and liabilities denominated in foreign currencies are translated at the functional currency spot rates of exchange at the
reporting date.
Differences arising on settlement or translation of monetary items are recognised in Statement of Profit and Loss.
Non-monetary items that are measured in terms of historical cost in a foreign currency are translated using the exchange rates at the
dates of the initial transactions. Non-monetary items measured at fair value in a foreign currency are translated using the exchange rates
at the date when the fair value is determined.
The Company has availed the exemption available in IND AS 101, to continue capitalisation of foreign currency fluctuation on long term
foreign currency monetary liabilities outstanding on transition date.
3.9 FINANcIAL INSTrUMENTS – INITIAL rEcOgNITION, SUBSEQUENT MEASUrEMENT AND IMPAIrMENT
A financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability or equity instrument of
another entity.
FINANcIAL ASSETS
(i) Initial recognition and measurement:
All financial assets are recognised initially at fair value and, in the case of financial assets not recorded at fair value through profit
or loss, transaction costs that are attributable to the acquisition of the financial asset.
ii) Subsequent measurement
For the purpose of subsequent measurement financial assets are classified in two broad categories:
a) Financial Assets at fair value
b) Financial Assets at amortised Cost.
iii) classification:
The Company classifies financial assets as subsequently measured at amortised cost, fair value through other comprehensive
income or fair value through profit or loss on the basis of its business model for managing the financial assets and the contractual
cash flows characteristics of the financial asset.
iv) Financial Assets measured at amortised cost:
Financial assets are measured at amortised cost when asset is held within a business model, whose objective is to hold assets for
collecting contractual cash flows and contractual terms of the asset give rise on specified dates to cash flows that are solely for
payments of principal and interest. Such financial assets are subsequently measured at amortised cost using the effective interest
rate (EIR) method. The losses arising from impairment are recognised in the Statement of profit and loss. This category generally
applies to trade and other receivables.
v) Financial Assets measured at fair value through other comprehensive income (FvTOcI):
Financial assets under this category are measured initially as well as at each reporting date at fair value. Fair value movements are
recognized in the other comprehensive income.
vi) Financial Assets measured at fair value through profit or loss (FvTPL):
Financial assets under this category are measured initially as well as at each reporting date at fair value with all changes recognised
in profit or loss.
vii) Investment in Subsidiary and Associates:
Investment in equity instruments of Subsidiaries and Associates are measured at cost. Provision for Impairment loss on such
investment is made only when there is a diminution in value of the investment which is other than temporary.
viii) Investment in Equity Instruments:
Equity instruments which are held for trading are classified as at FVTPL. All other equity instruments are classified as FVTOCI. Fair
value changes on the instrument, excluding dividends, are recognized in the other comprehensive income. There is no recycling of
the amounts from other comprehensive income to profit or loss.
ix) Investment in Debt Instruments:
A debt instrument is measured at amortised cost or at FVTPL. Any debt instrument, which does not meet the criteria for categorization
as at amortised cost or as FVOCI, is classified as at FVTPL. Debt instruments included within the FVTPL category are measured at
fair value with all changes recognised in the Statement of profit and loss.
x) Derecognition of Financial Assets:
A financial asset is primarily derecognised when the rights to receive cash flows from the asset have expired or the Company has
transferred its rights to receive cash flows from the asset, if an entity transfers a financial asset in a transfer that qualifies for
derecognition in its entirety and retains the right to service the financial asset for a fee, it shall recognise either a servicing asset
or a servicing liability for that servicing contract. If the fee to be received is not expected to compensate the entity adequately for
performing the servicing, a servicing liability for the servicing obligation shall be recognised at its fair value. If the fee to be received
is expected to be more than adequate compensation for the servicing, a servicing asset shall be recognised for the servicing right
at an amount determined on the basis of an allocation of the carrying amount of the larger financial asset.
xi) Impairment of Financial Assets:
In accordance with Ind - AS 109, the Company applies expected credit loss (ECL) model for measurement and recognition of
impairment loss on the financial assets that are debt instruments and trade receivables. For recognition of impairment loss on
other financial assets and risk exposure, the Company determines that whether there has been a significant increase in the credit
risk since initial recognition.

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FINANcIAL LIABILITIES
(i) Initial recognition and measurement:
All financial liabilities are recognised initially at fair value and, in the case of loans, borrowings and payables, net of directly
attributable transaction costs. Financial liabilities include trade and other payables, loans and borrowings including bank overdrafts
and derivative financial instruments.
(ii) classification & Subsequent measurement:
If a financial instrument that was previously recognised as a financial asset is measured at fair value through profit or loss and its
fair value decreases below zero, it is a financial liability measured in accordance with IND AS. Financial liabilities are classified as
held for trading, if they are incurred for the purpose of repurchasing in the near term. This category also includes derivative financial
instruments that are not designated as hedging instruments in hedge relationships as defined by Ind AS 109. Separated embedded
derivatives are also classified as held for trading unless they are designated as effective hedging instruments.
The company classifies all financial liabilities as subsequently measured at amortised cost, except for financial liabilities at fair
value through profit or loss. Such liabilities, including derivatives that are liabilities, shall be subsequently measured at fair value.
(iii) Loans and Borrowings:
Interest-bearing loans and borrowings are subsequently measured at amortised cost using the Effective Interest Rate (EIR) method.
Gains and losses are recognised in profit or loss when the liabilities are derecognised as well as through EIR amortisation process.
Amortised cost is calculated by taking into account any discount or premium on acquisition and fees or costs that are an integral
part of the EIR. The EIR amortisation is included as finance costs in the statement of profit and loss. After initial recognition Gain
and Liabilities held for Trading are recognised in statement of profit and Loss Account.
(iv) Derecognition of Financial Liabilities:
A financial liability is derecognised when the obligation under the liability is discharged or cancelled or expires. When an existing
financial liability is replaced by another from the same lender on substantially different terms, or the terms of an existing liability are
substantially modified, such an exchange or modification is treated as the derecognition of the original liability and the recognition
of a new liability. The difference in the respective carrying amounts is recognised in the Statement of Profit and Loss.
(v) Derivative Financial Instrument:
The Company uses derivative financial instruments, such as interest rate swaps, to hedge its interest rate risks. Such derivative
financial instruments are initially recognised at fair value on the date on which a derivative contract is entered into and are
subsequently remeasured at fair value. Derivatives are carried as financial assets when the fair value is positive and as financial
liabilities when the fair value is negative.
Offsetting financial instruments:
Financial assets and liabilities are offset and the net amount reported in the balance sheet when there is a legally enforceable right to
offset the recognised amounts and there is an intention to settle on a net basis to realise the asset and settle the liability simultaneously.
Subsequent recoveries of amounts previously written off are credited to Other Income.
3.10 cOMPOUND FINANcIAL INSTrUMENTS
The liability component of a compound financial instrument is recognised initially at fair value of a similar liability that does not have
an equity component. The equity component is recognised initially at the difference between the fair value of the compound financial
instrument as a whole and the fair value of the liability component. Any directly attributable transaction costs are allocated to the liability
and the equity components, if material, in proportion to their initial carrying amounts.
Subsequent to the initial recognition, the liability component of a compound financial instrument is measured at amortised cost using the
effective interest method. The equity component of a compound financial instrument is not re-measured subsequent to initial recognition
except on conversion or expiry.
3.11 cASh AND cASh EQUIvALENTS
Cash and cash equivalents in the balance sheet comprise cash on hand and at bank, deposits held at call with banks, other short-term
highly liquid investments with original maturities of three months or less that are readily convertible to a known amount of cash and are
subject to an insignificant risk of changes in value and are held for the purpose of meeting short-term cash commitments.
For the purpose of the statement of cash flows, cash and cash equivalents consist of cash and short-term deposits, as defined above, net
of outstanding bank overdrafts as they are considered an integral part of the Company’s cash management.
3.12 PrOvISIONS, cONTINgENT LIABILITIES, cONTINgENT ASSETS AND cOMMITMENTS
(i) general
Provisions are recognised when the Company has a present obligation (legal or constructive) as a result of a past event, it is
probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate
can be made of the amount of the obligation. If the effect of the time value of money is material, the amount of a provision shall be
the present value of expense expected to be required to settle the obligation Provisions are therefore discounted, when effect is
material, The discount rate shall be pre-tax rate that reflects current market assessment of time value of money and risk specific to
the liability. Unwinding of the discount is recognised in the Statement of Profit and Loss as a finance cost. Provisions are reviewed
at each balance sheet date and are adjusted to reflect the current best estimate.
(ii) contingencies
Contingent liabilities are disclosed when there is a possible obligation arising from past events, the existence of which will be
confirmed only by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the
Company or a present obligation that arises from past events where it is either not probable that an outflow of resources will be

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required to settle or a reliable estimate of the amount cannot be made. Information on contingent liability is disclosed in the Notes
to the Financial Statements.
A contingent asset is a possible asset that arises from past events and whose existence will be confirmed only by the occurrence
or non-occurrence of one or more uncertain future events not wholly within the control of the entity, Contingent assets are not
recognised, but are disclosed in the notes. However, when the realisation of income is virtually certain, then the related asset is no
longer a contingent asset, but it is recognised as an asset.
3.13 ShArE cAPITAL AND ShArE PrEMIUM
Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of new shares are shown in equity as a
deduction, net of tax, from the proceeds.
Par value of the equity share is recorded as share capital and the amount received in excess of the par value is classified as share
premium.
3.14 BOrrOwINg cOSTS
Borrowing costs specifically relating to the acquisition, construction or production of qualifying assets that necessarily takes a substantial
period of time to get ready for its intended use are capitalized (net of income on temporarily deployment of funds) as part of the cost of
such assets. Borrowing costs consist of interest and other costs that the Company incurs in connection with the borrowing of funds.
For general borrowing used for the purpose of obtaining a qualifying asset, the amount of borrowing costs eligible for capitalization
is determined by applying a capitalization rate to the expenditures on that asset. The capitalization rate is the weighted average of the
borrowing costs applicable to the borrowings of the Company that are outstanding during the period, other than borrowings made
specifically for the purpose of obtaining a qualifying asset. The amount of borrowing costs capitalized during a period does not exceed the
amount of borrowing cost incurred during that period.
All other borrowing costs are expensed in the period in which they are incurred.
3.15 rEvENUE rEcOgNITION
(i) Sale of goods
Revenue from the sale of goods is recognised, when the significant risks and rewards of ownership of the goods have passed to
the buyer, as per the terms of Company and no significant uncertainty exists regarding the amount of consideration that will be
derived from the sale of goods, usually on delivery of the goods. Revenue is recognized at the fair value of consideration received
or receivable, net of returns and allowances trade discounts, volume rebates and outgoing sales tax and are recognized either on
delivery or on transfer of significant risk and rewards of ownership of the goods. Revenue is inclusive of excise duty.
(ii) Other operating income
(a) Incentives
Incentives on exports and other Government incentives related to operations are recognised in books after due consideration
of certainty of utilization/receipt of such incentives.
Export incentives are recognised at the time of export when the Company will have certainly to comply with all attached
conditions.
(b) rental Income
Rental income is accrued on a time proportion basis by reference to the agreements entered into.
(iii) Other Income
(a) Interest income
Interest income is recognised on a time proportion basis using the effective interest method. When a receivable is impaired,
the Company reduces the carrying amount to its recoverable amount, being the estimated future cash flows discounted at the
original effective interest rate of the instrument and continues unwinding the discount as interest income. Interest income on
impaired loans is recognised using the original effective interest rate.
(b) Dividends
Dividend is recognised when the Company’s right to receive the payment is established, which is generally when shareholders
approve the dividend.
3.16 EMPLOYEE BENEFITS
(i) Short term employee benefits:
Short - term employee benefits are expensed as the related service is provided. A liability is recognized for the amount expected to
be paid if the Company has a present legal or constructive obligation to pay this amount as a result of past service provided by the
employee and the obligation can be estimated reliably
(ii) Defined benefit plans:
The Company’s net obligation in respect of defined benefit plans is calculated separately for each plan by estimating the amount of
future benefit that employees have earned in the current and prior periods, discounting that amount and deducting the fair value
of any plan assets. The calculation of defined benefit obligations is performed annually by a qualified actuary using the projected
unit credit method. When the calculation results in a potential asset for the Company and its subsidiaries, the recognized asset is
limited to the present value of economic benefits available in the form of any future refunds from the plan or reductions in future
contributions to the plan. To calculate the present value of economic benefits, consideration is given to any applicable minimum
funding requirements. Remeasurement of the net defined benefit liability, which comprises actuarial gains and losses, the return
on plan assets (excluding interest) and the effect of the asset ceiling (if any, excluding interest), are recognized immediately in Other

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comprehensive income. Net interest expense/(income) on the net defined liability/(assets) is computed by applying the discount
rate, used to measure the net defined liability/(asset), the start of the financial year after taking into account any changes as a result
of contribution and benefit payments during the year. Net interest expense and other expenses related to defined benefit plans are
recognised in Statement of Profit and Loss.
(iii) Long-term employee benefits:
The Company’s net obligation in respect of long - term employee benefits is the amount of future benefit that employees have
earned in return for their service in the current and prior periods. That benefit is discounted to determine its present value.
Remeasurement is recognised in Statement of Profit and Loss in the period in which they arise.
(iv) Post - employment benefits - Defined contribution plans:
The Company’s contributions to defined contribution plans are charged to the income statement in the period to which they relate.
Once the contributions have been paid, the Company has no further payment obligations. Prepaid contributions are recognised as
an asset to the extent that a cash refund or a reduction in the future payments is available.
(v) Termination benefits
Termination benefits are employee benefits provided in exchange for the termination of an employee’s employment as a result of
either:
(a) an entity’s decision to terminate an employee’s employment before the normal retirement date; or
(b) an employee’s decision to accept an offer of benefits in exchange for the termination of employment.
3.17 LEASES
(i) Lease payments:
Payments made under operating leases are recognized in Statement of Profit and Loss. Lease incentives received are recognized
as an integral part of the total lease expense, over the term of the lease. Minimum lease payments made under finance leases are
apportioned between the finance expense and the reduction of the outstanding liability. The finance expense is allocated to each
period during the lease term so as to produce a constant periodic rate of interest on the remaining balance of the liability.
(ii) Lease assets:
A lease is an agreement whereby the lessor conveys to the lessee in return for a payment or series of payments the right to use an
asset for an agreed period of time.
A finance lease is a lease that transfers substantially all the risks and rewards incidental to ownership of an asset. Title may or may
not eventually be transferred. The leased assets are measured initially at an amount equal to the lower of their fair value and the
present value of the minimum lease payments. Subsequent to initial recognition, the assets are accounted for in accordance with
the accounting policy applicable to that asset.
3.18 gOvErNMENT grANTS
Government grants with a condition to purchase, construct or otherwise acquire long-term assets are initially measured based on grant
receivable under the scheme. Such grants are recognised in the Statement of Profit and Loss on a systematic basis over the useful life
of the asset. Amount of benefits receivable in excess of grant income accrued based on usage of the assets is accounted as Government
grant received in advance. Changes in estimates are recognised prospectively over the remaining life of the assets. Government revenue
grants relating to costs are deferred and recognised in the Statement of Profit and Loss over the period necessary to match them with
the costs that they are intended to compensate.
(i) Sales tax incentives
The Group receives the benefit of certain sales tax incentives under the Packaged Scheme Incentive of the Maharashtra Government
(the “Sales Tax Incentive Scheme”). The benefits under the Sales Tax Incentive Scheme are recognized when it is reasonable to
expect that the benefit will be received and that all related conditions will be met. The main benefits relevant to the Group are the
Sales Tax Deferment Scheme, the Sales Tax Exemption Scheme and the Sales Tax Refund Scheme.
(ii) Sales Tax Deferment Scheme
Under the Scheme, the Sales Tax amounts collected from sales to customers are deferred and repaid to the Government Authorities,
without interest, after a specified period. The benefit of sales tax deferral is recognized as an income in accordance with the Ind AS
20 Accounting for Governments Grants and Disclosure of Government Assistance. This deferred sales tax liability is measured in
accordance with Ind AS 109 Financial Instruments. The benefit of the interest free loan is measured as the difference between initial
carrying value of the loan at fair value in accordance with Ind AS 109 and the sales tax collected.
(iii) Sales Tax Exemption Scheme
The benefit of the sales tax exemption applies to qualifying sales to customers within the State of Maharashtra of paper produced
from one of the paper machine in Bhigwan. As per the scheme, the Group is exempt from levying and payment of sales tax on sales
of paper to customers that would otherwise be payable and hence no adjustment is made to revenue.
(iv) Sales Tax refund Scheme
The benefit of sales tax refund scheme applies to qualifying sales made from the State of Maharashtra in respect of assets of the
Group in Ballarpur and Bhigwan. Under the scheme, sales tax is levied and collected from the customer and claim for refund is filed
with the sales tax authorities. These benefits are accounted for Other income in the statement of Profit and loss.

98 BALLARPUR INDUSTRIES LIMITED

ANNUAL REPORT 2016-17
ConsoLidated notes to FinanCiaL stateMents
3.19 TAXES
(i) Income tax
Income tax expense comprises current and deferred tax. It is recognised in statement of profit and loss except to the extent that it
relates to a business combination, or items recognised directly in equity or in other comprehensive income.
Management periodically evaluates positions taken in the tax returns with respect to situations in which applicable tax regulations
are subject to interpretation and establishes provisions where appropriate.
Current tax assets and liabilities are offset only if, the Company:
• has a legally enforceable right to set off the recognised amounts; and
• Intends either to settle on a net basis, or to realise the asset and settle the liability simultaneously.
(ii) Deferred tax
Deferred tax is recognized for the future tax consequences of deductable temporary differences between the carrying values
of assets and liabilities and their respective tax bases at the reporting date, using the tax rates and laws that are enacted or
substantively enacted as on reporting date. Deferred tax assets are recognized to the extent that it is probable that future taxable
income will be available against which the deductible temporary differences, unused tax losses and credits can be utilised. Deferred
tax relating to items recognised in other comprehensive income and directly in equity is recognised in correlation to the underlying
transaction.
Deferred tax assets and liabilities are offset only if:
• entity has a legally enforceable right to set off current tax assets against current tax liabilities; and
• deferred tax assets and the deferred tax liabilities relate to the income taxes levied by the same taxation authority.
3.20 DIvIDEND/DISTrIBUTION
Dividend distribution to the Company’s shareholders is recognised as a liability in the financial statements in the period in which the
dividends are approved by the Company’s shareholders.
3.21 EArNINg PEr ShArE
As per Ind AS 33 “Earning Per Share”, Basic earnings per share are computed by dividing the net profit for the year attributable to the
shareholders’ and weighted average number of shares outstanding during the year. The weighted average numbers of shares also
includes fixed number of equity shares that are issuable on conversion of compulsorily convertible preference shares, debentures or any
other instrument, from the date consideration is receivable (generally the date of their issue) of such instruments.
Diluted earnings per share is computed using the net profit for the year attributable to the shareholder’ and weighted average number
of equity and potential equity shares outstanding during the year including share options, convertible preference shares and debentures,
except where the result would be anti-dilutive. Potential equity shares that are converted during the year are included in the calculation
of diluted earnings per share, from the beginning of the year or date of issuance of such potential equity shares, to the date of conversion.
4 critical accounting estimates, assumptions and judgements
In the process of applying the Company's accounting policies, management has made the following estimates, assumptions and
judgements, which have significant effect on the amounts recognised in the financial statement:
(a) Property, plant and equipment
On transition to Ind AS, the Company has adopted optional exemption under IND AS 101 for fair valuation of property, plant and
equipment. The Company appointed external adviser to assess the fair value, remaining useful lives and residual value of property,
plant and equipment. Management believes that the assigned fair value, useful lives and residual value are reasonable.
(b) Impairment of tangible assets
As per Ind AS 36, the company shall assess at the end of each reporting period whether there is any indication that an asset may be
impaired. If any such indication exists, the entity shall estimate the recoverable amount of the asset.
As Kamalapuram unit is not in operation for almost 36 months, management appointed an external valuer to determine the
impairment amount, if any. The recoverable amount of the unit was determined based on calculations of net selling price as the
respective unit is not in operation
(c) Income taxes
Management judgment 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.
(d) contingencies
Management judgement 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.
(e) Allowance for uncollectable 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 to be collectible. Impairment
is made on the expected credit losses, which are the present value of the cash shortfall over the expected life of the financial assets.

Consolidated FinanCials 99
ANNUAL REPORT 2016-17
 ConsoLidated notes to FinanCiaL stateMents AS AT MArch 31, 2017

100
5. PrOPErTY, PLANT AND EQUIAPMENT
` in Lacs
Particulars Leasehold Freehold Buildings Plant and Furniture vehicles Office computers railway Sidings, Total
land land Equipment and Equipments Trolley Lines,
Fixtures Tramway &tipping
tups

gross Block

ANNUAL REPORT 2016-17

As at April 1, 2015 37,596 130,667 182,830 1,072,346 5,245 2,978 1,871 1,508 62 1,435,103
Additions - 68 649 25,197 65 171 17 166 - 26,333
Disposal - 65 284 2,011 9 133 3 9 - 2,514
Adjustments - - 23 0 1 - - - - 24
Translation reserve 24 - 236 1,678 15 6 - 6 - 1,966
As at March 31, 2016 37,620 130,670 183,408 1,097,210 5,315 3,022 1,885 1,671 62 1,460,864

BALLARPUR INDUSTRIES LIMITED

Additions 7,694 - 193 9,160 1 33 7 8 - 17,095
Disposal - 21 830 47 511 57 596 5 - 2,068
Adjustments - - 155 19,934 3 3 4 1 - 20,100
Translation reserve 851 - 7,955 54,128 449 211 - 148 - 63,742
As at March 31, 2017 44,463 130,649 174,661 1,032,261 4,353 2,784 1,292 1,525 62 1,392,049
Accumulated Depreciation
As at April 1, 2015 1,266 - 55,225 333,599 3,946 2,058 727 1,093 30 397,944
Charge for the year 274 - 4,911 31,762 194 282 162 137 4 37,726
Disposal - - 128 1,970 5 68 4 17 - 2,193
Translation reserve 9 - (101) 1,183 15 9 - 5 - 1,121
As at March 31, 2016 1,549 - 59,907 364,574 4,150 2,281 885 1,218 34 434,598
Charge for the year 273 - 3,967 31,766 122 200 108 122 3 36,561
Disposal - - 495 13 133 54 158 5 - 858
Adjustments 182 - 6,200 26,967 385 208 - 107 - 34,049
As at March 31, 2017 1,640 - 57,179 369,360 3,754 2,219 835 1,228 37 436,252
Net carrying amount
As at April 1, 2015 36,330 130,667 127,605 738,747 1,299 920 1,144 415 32 1,037,159
As at March 31, 2016 36,071 130,670 123,501 732,636 1,165 741 1,000 453 28 1,026,266
As at March 31, 2017 42,823 130,649 117,482 662,901 599 565 457 297 25 955,799
Notes:
1. "0"represent amount below ` 50,000/-
2. During the year Translation Reserve include capitalisation of Exchange Gain amounting to ` 1842 Lacs (Previous Year Exchange Loss was ` 9640 Lacs which was included in Additions)
3. The lease agreement in respect of 5.04 Acres of land in possession of the Bilt Graphic Paper Product Limited is yet to be executed in favour of the Bilt Graphic Paper Product Limited.
4. Building includes ` 293 lacs (Previous Year ` 293 Lacs) towards revalued value of ownership flats in Cooperative Housing Societies.
5. Depreciation during the Year include:
i) ` 304 Lacs (Previous Year ` 279 Lacs) charge to inventories.
ii) ` 330 Lacs (Previous Year ` 376 Lacs) charge to bioligical assets.
iii) ` 10958 Lacs (Previous Year ` 14315 Lacs) to discontinue operations.
ConsoLidated notes to FinanCiaL stateMents AS AT MArch 31, 2017

` in Lacs

6. cAPITAL wOrK IN PrOgrESS

Particulars As at As at
31st March-2017 31st March-2016
Opening Net carrying value 35,259 23,820
Additions 2,983 17,259
Transferred to Property, Plant and Equipment 2,125 4,036
Transferred to Expenses 5 -
Disposals 393 1,780
Exchange differences 9 4
closing Net carrying value 35,710 35,259

7. INTANgIBLE ASSETS
PArTIcULArS As at 31st March-2017 As at 31st March-2016
Product Others - Total Product Others - Total
Development computer Development computer
Expense Software Expense Software
Opening Net Carrying Value 5,522 2,332 7,854 3,893 2,446 6,339
Additions 1,156 - 1,156 2,482 12 2,494
Disposals - - - - - -
Amortization charge 1,483 946 2,429 993 126 1,119
Translation Reserve - - - 140 - 140
closing Net carrying value 5,195 1,386 6,581 5,522 2,332 7,854

8. INTANgIBLE ASSETS UNDEr DEvELOPMENT

PArTIcULArS As at As at
31st March-2017 31st March-2016
Opening Net Carrying Value 4,300 192
Additions - 4,109
Transferred to Property, Plant and Equipment 1,156 -
Transferred to Expenes - 1
closing Net carrying value 3,144 4,300

9. BIOLOgIcAL ASSETS OThEr ThAN BEArEr PLANTS

PArTIcULArS As at As at
31st March-2017 31st March-2016
cOST
At the beginning of the Year 96,296 97,565
Additions 1,886 5,142
Gain/(Loss) on changes in fair valuation of biological Assets 6,691 (6,511)
Translation Reserve 13,570 (100)
At the end of the Year 91,302 96,296
AccUMULATED AMOrTISATION
At the beginning of the Year 25,824 23,322
Charge for the Year 782 2,313
Translation Reserve 3,561 (189)
At the end of the Year 23,045 25,824
Net carrying Amount 68,257 70,472
Note: During the Year, Amortisation Expense is charged to the following
Statement of Profit & Loss 782 2,605
Inventories (0) (292)

Consolidated FinanCials 101

ANNUAL REPORT 2016-17
ConsoLidated notes to FinanCiaL stateMents AS AT MArch 31, 2017

` in Lacs

10 NON cUrrENT INvESTMENTS

Particulars As at 31st March-2017 As at 31st March-2016 As at 1st April-2015
Numbers Amount Numbers Amount Numbers Amount
Investments Measured at Fair value through OcI
A) Unquoted, Non-trade investments:
I) In equity shares of Other companies:
a) Blue Horizon Investments Limited 5,000 3 5,000 3 5,000 3
b) Avantha Power & Infrastructure Limited 39,880,940 4,053 39,880,940 4,053 39,880,940 4,053
Total Unquoted Non-trade Investments 39,885,940 4,056 39,885,940 4,056 39,885,940 4,056
B) Quoted, Non-trade investments:
I) Investments in Mutual Funds
a) Birla Sun Life Savings Fund - - 344,294 960 - -
Total quoted Non-trade Investments - - 344,294 960 - -

10.1 Aggregate amount of Non current Investments

Particulars As at 31st March-2017 As at 31st March-2016 As at 1st April-2015
Numbers Amount Numbers Amount Numbers Amount
Unquoted Investments 39,885,940 4,056 39,885,940 4,056 39,885,940 4,056
Quoted Investments - - 344,294 960 - -
Total Investments Measured at Fair value through OcI 39,885,940 4,056 40,230,234 5,016 39,885,940 4,056

10.2 category-wise Non current Investments

Particulars As at 31st March-2017 As at 31st March-2016 As at 1st April-2015
Numbers Amount Numbers Amount Numbers Amount
Investments Measured at Fair Value through OCI 39,885,940 4,056 39,885,940 4,056 39,885,940 4,056
Total quoted Non-trade Investments - - 344,294 960 - -
Total 39,885,940 4,056 40,230,234 5,016 39,885,940 4,056

11 OThEr NON cUrrENT FINANcIAL ASSETS

Particulars As at As at As at
31st March-2017 31st March-2016 1st April-2015
Unsecured, considered good
(a) Security Deposits 1,228 1,464 1,581
(b) Balance with Government Authorities 3,797 3,820 3,097
(c) Banks deposits with maturity period more than 12 months 19 18 17
5,044 5,302 4,695

12 OThEr NON cUrrENT ASSETS

Particulars As at As at As at
31st March-2017 31st March-2016 1st April-2015
Capital Advances (Unsecured, considered good) 463 547 395
Unamortized expenses 32 128 120
Prepaid expenses 741 616 1,232
Withholding tax recoverable 10,022 9,387 8,070
Balance with Govt Authorities 4,772 20,456 17,253
Mat Credit Entitlement 18,018 18,018 17,676
34,048 49,152 44,746

102 BALLARPUR INDUSTRIES LIMITED

ANNUAL REPORT 2016-17
ConsoLidated notes to FinanCiaL stateMents AS AT MArch 31, 2017

` in Lacs

13 INvENTOrIES
Particulars As at As at As at
31st March-2017 31st March-2016 1st April-2015
Raw materials 6,547 19,314 48,581
Work in progress 3,272 10,172 15166
Finished goods 5,980 22,065 26,819
Stores and spares 35,997 71,391 34,698
Block Stores 144 155 169
Chemicals 13,526 27,584 13,657
Packing material 2,627 3,271 3,916
68,093 153,952 143,006
13.1) Includes raw material-in-transit of ` 1 Lacs (Previous Year 2015-16 ` 5,917 Lacs, Previous Year 2014-15 ` 8,860 Lacs)
13.2) Includes stores & spares-in-transit of ` 424 Lacs (Previous Year 2015-16 ` 1,121 Lacs, Previous Year 2014-15 ` 1,870 Lacs)
13.3) Includes Chemicals-in-transit of ` 370 Lacs (Previous Year 2015-16 ` 1,109 Lacs, Previous Year 2014-15 ` 989 Lacs)
13.4) Includes packing material-in-transit of ` 11 Lacs (Previous Year 2015-16 ` 30 Lacs, Previous Year 2014-15 ` 77 Lacs)

14 TrADE rEcEIvABLES
Particulars As at As at As at
31st March-2017 31st March-2016 1st April-2015
Secured considered good:-
- Due from others (more than 6 months) 15 65 122
- Due from others (less than 6 months) 471 1,081 2,624
Total Secured 486 1,146 2,746
Unsecured considered good
- Due from related parties 3,788 5,152 5,124
- Due from others (more than 6 months) 1,006 1,102 831
- Due from others (less than 6 months) 1,780 29,187 26,522
Considered doubtful - - -
Less: Provision for doubtful debts - - -
Total Unsecured 6,574 35,442 32,477
Total Trade receivables 7,060 36,588 35,223

15 cASh AND cASh EQUIvALENTS

Particulars As at As at As at
31st March-2017 31st March-2016 1st April-2015
Balances with Banks:
- On current accounts 10,847 23,094 1,992
- Fixed deposits with original maturity of less than three months 134 1,120 61
Cheques on Hand - - 0
Cash in transit - - 688
Cash on hand 33 28 24
Total cash and cash equivalents 11,014 24,242 2,765

16 OThEr BANK BALANcES

Particulars As at As at As at
31st March-2017 31st March-2016 1st April-2015
In deposit accounts exceeding three months but less than twelve months 1,038 712 20,684
Earmarked Balance with Banks in unpaid dividend accounts 67 80 86
Earmarked Balance with Banks in unclaimed compulsary / optional buy 179 181 185
back considereation
In other accounts - 6 354
Total 1,284 979 21,309

17 LOANS
Particulars As at As at As at
31st March-2017 31st March-2016 1st April-2015
Unsecured, considered good
(a) Loans to related parties 29,577 30,121 10,855
(b) Loans to others 30,068 13,277 2,838
Total 59,645 43,398 13,693

Consolidated FinanCials 103

ANNUAL REPORT 2016-17
ConsoLidated notes to FinanCiaL stateMents AS AT MArch 31, 2017

` in Lacs

18 OThEr FINANcIAL ASSETS

Particulars As at As at As at
31st March-2017 31st March-2016 1st April-2015
Interest accrued on deposits 58 152 571
Insurance Receivables 41 96 152
Balance with Govt. Authorities 1,544 4,465 5,276
Scrap Receivables 88 80 55
Advances to Others 31 496 344
Security Deposits considered good 885 783 783
Total 2,647 6,072 7,181

19 cUrrENT ASSETS (NET)

Particulars As at As at As at
31st March-2017 31st March-2016 1st April-2015
Advance tax, tax deducted at source (including income tax refund 806 634 781
receivable)
Total 806 634 781

20 OThEr cUrrENT ASSETS

Particulars As at As at As at
31st March-2017 31st March-2016 1st April-2015
Prepaid expenses 2,165 3,045 2,328
Current portion of unamortized expenses - 2 27
Advances to employees* 225 233 412
Balance with government authorities** 23,024 18,153 18,421
Advances to trade creditors 31,506 17,855 14,511
Other current assets 56 8 7
Total 56,976 39,296 35,706
* Includes amount advanced to Directors ` 5 Lacs (Previous Year2015-16 ` 16 Lacs, Previous Year 2014-15 ` 16 Lacs)
** Pledged with banks, government departments and others.

21 EQUITY ShArE cAPITAL:

Particulars As at As at As at
31st March-2017 31st March-2016 1st April-2015
Authorised
750,000,000 (March 31, 2016: 750,000,000, March 31, 2015: 750,000,000) 15,000 15,000 15,000
Equity shares of ` 2/- each
25,000,000 (March 31, 2016: 25,000,000, March 31, 2015: 25,000,000) 25,000 25,000 25,000
Preference shares of ` 100/- each
40,000 40,000 40,000
Issued capital
655,773,584 (March 31, 2016: 655,773,584, March 31, 2015: 655,773,584) 13,115 13,115 13,115
Equity shares of ` 2/- each
13,115 13,115 13,115
Subscribed and Paid up capital
655,773,584 (March 31, 2016: 655,773,584, March 31, 2015: 655,773,584) 13,115 13,115 13,115
Equity shares of ` 2/- each
Less: Forfeited shares - 249,745 (March 31, 2016: 249,745, March 31, 2015: 5 5 5
249,745) Equity shares of ` 2/- each
655,523,839 (March 31, 2016: 655,523,839, March 31, 2015: 655,523,839) 13,110 13,110 13,110
Equity shares of ` 2/- each
Add: Amount originally paid up on forfeited shares 2 2 2
13,112 13,112 13,112

104 BALLARPUR INDUSTRIES LIMITED

ANNUAL REPORT 2016-17
ConsoLidated notes to FinanCiaL stateMents AS AT MArch 31, 2017

` in Lacs
a) reconciliation of the number of shares :-
Particulars As at 31st March-2017 As at 31st March-2016 As at 1st April-2015
No. of Shares Amount No. of Shares Amount No. of Shares Amount
Balance as at the beginning of the 655,523,839 13,112 655,523,839 13,112 655,523,839 13,112
year
Add:- Issued during the Year - - - - - -
Balance as at the end of the year 655,523,839 13,112 655,523,839 13,112 655,523,839 13,112

b) rights, preferences and restrictions attached to shares:

The company has one class of equity shares having a par value of ` 2 per share. Each shareholder is eligible for one vote per
share held. In the event of liquidation of the company, the holders of equity shares will be entitled to receive any of the remaining
assets of the company, after distribution of all preferential amounts. However, no such preferential amounts exist currently. The
distribution will be in proportion to the number of equity shares held by the shareholders.

c) Details of shares held by shareholders holding more than 5% of the aggregate shares in the company:
Name of shareholders As at 31st March-2017 As at 31st March-2016 As at 1st April-2015
No. of Shares holding % No. of Shares holding % No. of Shares holding %
a) Avantha Holdings Limited 322,689,019 49.23% 322,689,019 49.23% 322,689,019 49.23%
b) Life Insurance Corporation 43,872,365 6.69% 43,872,365 6.69% 44,134,423 6.73%
of India
c) Samera Special Situations 58,936,338 8.99% 59,480,544 9.07% 41,515,609 6.33%
Mauritius
d) Platinum Investment - - 35,282,244 5.38% 35,282,244 5.38%
Management Ltd. A/c Platinum
Asia Fund
e) Finquest Securities Private 35,458,000 5.41% - - - -
Limited
d) Terms of securities convertible into equity shares:
123 (March 31, 2016: 123) equity shares of ` 2/- each represent 41 underlying Global Depository Receipts.

22 BOrrOwINgS
Particulars As at As at As at
31st March-2017 31st March-2016 1st April-2015
Non-current Borrowings:
Secured Loan:-
a) Non convertible debentures 15,000 26,000 52,000
b) External commercial borrowings - 20,996 23,385
c) Term loan from :-
- Bank 294,964 302,984 173,712
- Financial Institutions 36,409 59,151 53,953
(d) Vehicle Loan - 0 1
Unsecured Loan:-
a) Loan from banks - - 14,620
b) ZCCB 3,714 3,792 9,402
c) Deferred payment liabilities 989 801 607
Total 351,076 413,724 327,680
current Borrowings:
Working capital loan 385,608 305,974 307,338
Total 385,608 305,974 307,338

Consolidated FinanCials 105

ANNUAL REPORT 2016-17
ConsoLidated notes to FinanCiaL stateMents AS AT MArch 31, 2017

a) In accordance with the Subcription and Participation Agreement signed between the Company, BILT and Avantha International
Assets B.V. (AIA) (earlier held by JP Morgan Special Situations Asia Corporation), the Company has issued Zero Coupon Convertible
bonds.
b) The Company had availed various secured financial facilities from the banks and financial institutions (“the Lenders”). The said
loans are secured by way of a first pari-passu charge over all moveable / immoveable assets of the company both present and
future.
c) All the Bank Borrowings except below are in Indian Currency i.e. foreign currency profile.

Borrowing Particulars Nature of Bank Amount in Amount in Indian

Borrowing Foreign currency currency O/s As
(Sanction/O/s) (in on 31st March,
Million) 2017 (Amount in
Lacs)
Ballarpur Industries Limited Working Capital Standard GBH 7.34 6123
Loan Chartered Bank
Sabah Industries Limited Working Capital Standard USD 4.955 3,215
Loan Chartered Bank
Sabah Industries Limited Working Capital HSBC USD 2.775 1,800
Loan
Bilt Graphic Paper Product Limited Term Loan DBS USD 20 12652

Bilt Graphic Paper Product Limited Term Loan RABO USD 25 12616

Sabah Industries Limited Term Loan Standard USD 25 4,866

Chartered Bank
Sabah Industries Limited Term Loan Standard USD 20 4,866
Chartered Bank
Sabah Industries Limited Term Loan RABO USD 50 4,866

Sabah Industries Limited Term Loan RABO USD 25 6,488

Sabah Industries Limited Term Loan ICICI Bank USD 50 19,464

Sabah Industries Limited Term Loan ICICI Bank USD 25 13,590

Ballarpur Paper Holdings (BPH) Term Loan DBS USD 15 8,759

Ballarpur Paper Holdings (BPH) Term Loan ECL USD 5.4 4,365

Ballarpur International Holdings (BIH) Term Loan Credit Agricole USD 55 35,109

Ballarpur International Holdings (BIH) Term Loan JPM USD 24.5 14,899

Ballarpur International Holdings (BIH) Term Loan ICICI Bank USD 21.494 9,504

Ballarpur International Holdings (BIH) Term Loan IDBI Bank USD 20 12,787

d) The Company is required to maintain ratios (including total debt to EBITDA / net worth, EBITDA to gross interest, debt service
coverage ratio and secured coverage ratio) as mentioned in the loan agreements at specified levels. In the event of failure to meet
any of these ratios, these loans become callable at the option of lenders, except where exemption is provided by lender.

106 BALLARPUR INDUSTRIES LIMITED

ANNUAL REPORT 2016-17
ConsoLidated notes to FinanCiaL stateMents AS AT MArch 31, 2017

e) In the current financial year, due to delay in repayments of debts and payment of interest, the lenders of the company have invoked
standstill provision. As of March 31, 2017, the Company had breached the financial covenants set by its bankers for outstanding
term loans amounting to ` 83,593 Lacs. The details is as under:-
(` in Lacs)
Borrowing Particulars Default Upto 3 3 to 6 6 Months to Beyond
Outstanding Months Months 1 Year 1 Year
Amount
IDFC 1,923 961 962 - -
Clix Capital P. Ltd. formerly known as GE Money Financial 1,364 682 682 - -
Services Pvt. Ltd.
Clix Capital P. Ltd. formerly known as GE Money Financial 456 227 229 - -
Services Pvt. Ltd.
State Bank of India 1,620 810 810 - -
IDFC 654 444 210 - -
Action Global Private Limited 200 200 - - -
AXIS Bank Limited 5,000 2,500 2,500 - -
State Bank of Patiala 100 50 50 - -
RABO- ECB 3,604 1,802 1,802 - -
DBS- ECB 1,103 779 324 - -
Non Convertible Debenture 10,965 8,465 2,500 - -
Exim Bank 1,429 714 715 - -
State Bank Of Travancore 375 125 250 - -
The South Indian Bank 500 500 - - -
IDBI Bank 125 125 - - -
RABO Foreign Currency Loan 50 Million USD 4,866 - - 4,055 811
RABO Foreign Currency Loan 25 Million USD 6,488 - - 3,244 3,244
ICICI Bank Foreign Currency Loan 50 Million USD 19,464 15,247 2,271 1,946 -
ICICI Bank Foreign Currency Loan 25 Million USD 13,625 12,976 324 324 -
SCB Foreign Currency Loan 25 Million USD 4,866 3,244 - 1,622 -
SCB Foreign Currency Loan 20 Million USD 4,866 3,244 - 1,622 -
Total 83,593 53,095 13,629 12,814 4,055
The company is in discussions with banks to finalise & implement SDF / Other restructuring packages.

f) The maturity profile of the company's borrowing at the reporting date based on contractual undiscounted repayment obligation
(including current maturities) are as follows :-
` in Lacs
Year As at
31st March-2017
2017-18 Current 205,362
2018-19 97,020
2019-20 79,104
2020-21 75,630
2021-22 45,830
Non-Current
2022-23 31,314
2023-24 12,708
2024-25 9,278
2025-26 4,634

g) The term loans, working capital loans etc. are arranged at fixed & floating rates. The interest rates per annum are as follows:-
Particulars As at As at As at
31st March-2017 31st March-2016 1st April-2015
a) Non convertible debentures 9.75% to 11.75% 9.65% to 11.75% 9.35% to 9.90%
b) Term loan from :-
Bank 2.20% TO 13.75% 1.90% TO 13.75% 2.68% TO 13.75%
Financial Institutions 9.50% to 16.50% 10.76% to 12.75% 11.44% to 12.10%
c) Working capital loan 4.00% to 14.00% 4.00% to 13.50% 4.00% to 12.25%

h) Deferred Payment Liabilities

The Company has opted for the deferral scheme of sales tax, which is payable as per the scheme framed by the State Government.

Consolidated FinanCials 107

ANNUAL REPORT 2016-17
 ConsoLidated notes to FinanCiaL stateMents AS AT MArch 31, 2017

108
i) Loan from Bank/Financial Institutions :-

Sl. Name of Bank Sanctioned As on date Total current Non- Interest Security repayment terms
No. Amount Outstanding current rate
Amount
1 Exim Bank 15,000 31-Mar-17 9,222 4,286 4,936 Base Rate The Loan is secured by way of a first Term loan is repayable in 21 equal quarterly
31-Mar-16 10,690 3,571 7,119 + 1.50% pari-passu charge over all moveable installments starting from the end of 24
1-Apr-15 13,535 2,857 10,677 Initially fixed assets of the company both months from the date of first disbursement i.e.
present and future. 29th Oct, 2012. therefore, payment due date

ANNUAL REPORT 2016-17

starting from November 2014 to October 2019.
2 Clix Capital P. Ltd. 5,000 31-Mar-17 - - - Benchmark The Loan is secured by way of a first Term loan is repayable in 20 equal quarterly
formerly known as 31-Mar-16 2,500 1,250 1,250 Rate + 2.70% pari-passu charge over all moveable installments starting from September 2013 to
GE Money Financial 1-Apr-15 3,250 1,000 2,250 Initially fixed assets of the company both June 2018.
Services P. Ltd. present and future.

BALLARPUR INDUSTRIES LIMITED

3 State Bank of 5,000 31-Mar-17 4,599 4,599 - Base Rate The Loan is secured by way of a first Term loan is repayable in 32 equal quarterly
Travancore 31-Mar-16 4,700 375 4,325 + 1.50% pari-passu charge over all moveable installments starting from September 2014 to
1-Apr-15 4,857 225 4,632 Initially fixed assets of the company both June 2022.
present and future.
4 Phoenix ARC Pvt. Ltd.* 10,000 31-Mar-17 9,991 2,500 7,491 Base Rate The Loan is secured by way of a first Term loan is repayable in 20 equal quarterly
31-Mar-16 9,993 500 9,493 + 1.50% pari-passu charge over all moveable installments starting from December 26, 2016
1-Apr-15 9,991 - 9,991 Initially fixed assets of the company. to September 26, 2021.
5 IDBI BANK 10,000 31-Mar-17 9,522 875 8,647 Base Rate The Loan is secured by way of a first Term loan is repayable in 27 equal quarterly
31-Mar-16 9,882 475 9,407 + 2.00% pari-passu charge over freehold installments starting from December 2015 to
1-Apr-15 - - - Initially immovable property of units June 2022.
Kamlapuram & Shreegopal.
6 ICICI BANK 27,500 31-Mar-17 27,500 4,125 23,375 Base Rate The Loan is secured by way of a first Term loan is repayable in 20 equal quarterly
31-Mar-16 27,500 - 27,500 + 1.92% pari-passu charge over all moveable installments starting from the end of 9th
1-Apr-15 - - - Initially fixed assets of the company. Quarter from the date of first disbursement/
drawdown i.e. September 2017 to June 2022.
7 ICICI BANK 17,000 31-Mar-17 16,610 850 15,760 Base Rate The Loan is secured by way of a first Term loan is repayable in 20 equal quarterly
31-Mar-16 16,680 - 16,680 + 2.60% pari-passu charge over all fixed assets installments starting from the end of 9th
1-Apr-15 - - - Initially of the company. Quarter from the date of first disbursement/
drawdown i.e.March 2018 to December 2022.
8 NCD Yes Bank 31-Mar-17 - - - 9.90%
31-Mar-16 - - -
1-Apr-15 5,000 5,000 -
9 NCD LIC 31-Mar-17 15,000 - 15,000 11.75% Debentures are secured by way of These Debentures is repayable in 5 equal
31-Mar-16 15,000 - 15,000 a first pari-passu charge over all yearly installments starting from the f.y. 19-20
1-Apr-15 15,000 - 15,000 movable properties of the company to 23-24.
both present and future.
10 IDFC Limited 25,000 31-Mar-17 17,254 5,769 11,485 Benchmark The Loan is secured by way of The loan is repayable in 26 equal quarterly
31-Mar-16 19,146 3,846 15,300 Rate + 2.25% hypothecation of the entire movable instalments starting from October 15, 2014 to
1-Apr-15 22,954 3,846 19,108 initially properties (excluding current assets January 15, 2021.
and non-current assets (in the nature
of current assets)), both present and
future of The Company.
 ConsoLidated notes to FinanCiaL stateMents AS AT MArch 31, 2017

Sl. Name of Bank Sanctioned As on date Total current Non- Interest Security repayment terms
No. Amount Outstanding current rate
Amount
11 Clix Capital P. Ltd. 15,000 31-Mar-17 7,499 4,091 3,408 Benchmark The loan is secured by way of first pari The loan is repayable in 22 equal quarterly
formerly known as 31-Mar-16 9,543 3,409 6,133 Rate + 2.70% passu charge over all Moveable Fixed installments starting from March 27, 2014 to
GE Money Financial 1-Apr-15 11,586 2,727 8,859 initially Assets of the Company. June 27, 2019.
Services P. Ltd.
12 State Bank of India 30,000 31-Mar-17 22,601 6,080 16,521 Base Rate + The loan is secured by way of first pari
The loan is repayable in quarterly Instalments
31-Mar-16 24,185 4,050 20,135 1.5% initially passu charge over all Moveable Fixed
starting from 30th June, 2014 to 30th June,
1-Apr-15 26,573 3,240 23,333 Assets of the Company. 2023.
13 IDFC Limited (Loan-2) 12,693 31-Mar-17 7,916 2,663 5,253 12.75% The loan is secured by way of first pari-
The repayment of loan is already started and
31-Mar-16 9,037 2,009 7,028 passu charge over all Moveable Fixed
the loan is divided into two parts, the final
1-Apr-15 10,579 1,775 8,803 Assets of the Company. repayment of loan 1 and loan 2 is 15th July,
2020 & 15th September, 2022.
14 Clix Capital P. Ltd. 5,000 31-Mar-17 3,863 1,364 2,500 Benchmark The Loan is secured by way of a first The loan is repayable in 22 equal quarterly
formerly known as 31-Mar-16 4,545 1,136 3,408 Rate + 2.70% pari-passu charge over all moveable installments starting from August 14, 2015 to
GE Money Financial 1-Apr-15 4,999 909 4,090 initially fixed assets of the company. November 13, 2020.
Services P. Ltd.
15 Axis Bank Limited 20,000 31-Mar-17 19,926 6,000 13,926 Base Rate The Loan is secured by way of a first The loan is repayable in 20 equal quarterly
31-Mar-16 19,892 2,000 17,892 + 1.35% pari-passu charge over all moveable installments starting from December 31, 2016
1-Apr-15 19,858 - 19,858 initially fixed assets of the company. to September 30, 2021.
16 Aditya Birla Finance 20,000 31-Mar-17 18,822 1,000 17,822 Asix Bank The loan is secured by way of first pari The loan is repayable in 31 Instalments starting
Limited 31-Mar-16 18,500 800 17,700 Base Rate passu charge on all Moveable Fixed from 30 Sept., 2015 to 31 Mar., 2023.
1-Apr-15 - - - + 1.65% Assets of the Company.
initially
17 State Bank of Patiala 5,000 31-Mar-17 4,770 300 4,470 Base Rate The loan is secured by way of first pari The loan is repayable in 31 Instalments starting
31-Mar-16 4,900 200 4,700 + 1.50% passu charge on all Moveable Fixed from 30 Sept., 2015 to 31 Mar., 2023.
1-Apr-15 - - - initially Assets of the Company.
18 Axis Bank Limited 100,000 31-Mar-17 78,763 13,917 64,846 Base Rate The loan is secured by way of first pari
The loan is repayable in 40 equal quarterly
31-Mar-16 62,895 7,628 55,266 + 1.65% passu charge on all Fixed Assets of the
Instalments starting from 23rd Dec., 2015 to
1-Apr-15 - - - initially Company. 29th Dec., 2025.
19 ICICI Bank Limited 32,500 31-Mar-17 31,833 1,625 30,208 Base Rate The loan is secured by way of first pari
The loan is repayable in 20 equal quarterly
31-Mar-16 31,646 - 31,646 + 2.60% passu charge on all Fixed Assets of the
Instalments starting from 30 Mar., 2018 to 30
1-Apr-15 - - - initially Company. Dec., 2022.
20 IDFC Limited (Loan-3) 2,500 31-Mar-17 2,500 2,500 - MCLR The Loan is secured by way of a first The loan is repayable in 12 equal quarterly
31-Mar-16 - - - + 3.60% pari-passu charge over all moveable Instalments starting by end of 15 month from
1-Apr-15 - - - initially fixed assets of the company. the date of first disbursement.
21 Yes Bank Limited 15,000 31-Mar-17 12,505 3,750 8,755 Base Rate The Loan is secured by way of a first The loan is repayable in 16 equal quarterly
31-Mar-16 - - - + 1.00% pari-passu charge over all moveable Instalments after the monotarium period of 1
1-Apr-15 - - - initiallly fixed assets of the company. year from the date of first disbursement..
22 ECL Finance Limited 15,000 31-Mar-17 15,000 15,000 - 16.50% The loan is repayable in 12 equal quarterly
31-Mar-16 - - - Instalments starting by end of 15 month from
1-Apr-15 - - - the date of agreement ie 08th March, 2017.

Consolidated FinanCials
ANNUAL REPORT 2016-17
23 Axis Bank Limited 31-Mar-17 - - - 11.15% The Loan is secured by way of a first N.A.
31-Mar-16 - 1,301 - pari-passu charge over all moveable
1-Apr-15 6,678 - 5,377 fixed assets of the company.

109
 ConsoLidated notes to FinanCiaL stateMents AS AT MArch 31, 2017

110
Sl. Name of Bank Sanctioned As on date Total current Non- Interest Security repayment terms
No. Amount Outstanding current rate
Amount
24 HDFC Bank Limited 31-Mar-17 - - - 9.25% The Loan is secured by way of The loan is repayable in 60 monthly instalments
31-Mar-16 - 2 - hypothecation on vehicle. starting from December, 2010 to November,
1-Apr-15 2 - - 2015.
25 ECB (DBS) USD 20 31-Mar-17 12,652 12,652 - 2.7% + The Loan is secured by way of a first The loan is repayable in 8 semi annual
Million 31-Mar-16 12,920 1,126 11,794 LIBOR pari-passu charge over all moveable instalments from 07th February, 2016 to 07th
1-Apr-15 12,009 300 11,709 Initially fixed assets of the company. August, 2019.

ANNUAL REPORT 2016-17

26 ECB (RABO) USD 25 31-Mar-17 12,616 12,616 - 3.30% + The Loan is secured by way of a first The loan is repayable in 9 semi annual
Million 31-Mar-16 12,883 3,681 9,202 LIBOR pari-passu charge over all moveable instalments starting by end of 36 months from
1-Apr-15 30,383 18,708 11,676 Initially fixed assets of the company. the utilisation date.
27 Non Convertible 31-Mar-17 44,420 44,420 - 8.75% to The debentures is secured by way of NCD are repayble in installments starting from
Debentures 31-Mar-16 37,000 26,000 11,000 9.90% a first pari-passu charge over fixed September 2012 to September 2017 except

BALLARPUR INDUSTRIES LIMITED

1-Apr-15 51,000 14,000 37,000 assets of the company both present & NCD alloted during the financial year 2016-17
future except of ` 22,450 Lacs is repayble after one year.
1. NCD of ` 25,000 Lacs alloted on 29th
September 2010 which is secured by
Pari-Passu first charge on Movable
fixed assets of the company both
present & future.
2. NCD of ` 22,450 Lacs alloted during
the F.Y. 2016-17 is unsecured.
28 OCBC US$ 20 31-Mar-17 - - - LIBOR + The loan is secured by way of first pari The loan is repayable by 8 equal semi-annual
Million 31-Mar-16 - - - 3.90% passu charge over the current assets, instalments commencing from October, 2013.
1-Apr-15 6,258 1,562 4,696 fixed assets, land and receivables of
Sabah Forest Industries Sdn. Bhd.
29 Standard Chartered US$ 25 31-Mar-17 4,866 4,866 - LIBOR + 5% The loan is secured by way of first pari The loan is repayable by 10 equal semi-annual
Bank Million 31-Mar-16 4,957 3,302 1,655 passu charge over the current assets, instalments commencing from Febuary 8,
1-Apr-15 7,786 3,090 4,696 fixed assets, land and receivables of 2013.
Sabah Forest Industries Sdn. Bhd.
30 Standard Chartered US$ 20 31-Mar-17 4,866 4,866 - LIBOR + The loan is secured by way of first pari The loan is repayable by 8 equal semi-annual
Bank Million 31-Mar-16 4,949 3,294 1,655 3.20% passu charge over the current assets, instalments commencing from January 4, 2014.
1-Apr-15 7,124 2,429 4,696 fixed assets, land and receivables of
Sabah Forest Industries Sdn. Bhd.
31 RABO Bank USD 50 31-Mar-17 4,866 4,866 - LIBOR + The loan is secured by way of first pari The loan is repayable by 8 equal semi-annual
Million 31-Mar-16 4,965 4,965 - 3.58% passu charge over the current assets, instalments commencing from March 15, 2013.
1-Apr-15 7,017 4,669 2,348 fixed assets, land and receivables of
Sabah Forest Industries Sdn. Bhd.
32 RABO Bank USD 25 31-Mar-17 6,488 6,488 - LIBOR + The loan is secured by way of first pari The loan is repayable by 5 equal semi-annual
Million 31-Mar-16 6,619 6,619 - 3.65% passu charge over the current assets, instalments commencing from September 28,
1-Apr-15 9,361 6,231 3,130 fixed assets, land and receivables of 2014.
Sabah Forest Industries Sdn. Bhd.
33 ICICi Bank USD 50 31-Mar-17 19,464 19,464 - LIBOR + The loan is secured by way of first pari The loan is repayable by 19 unequal quarterly
Million 31-Mar-16 22,452 9,213 13,239 3.94% passu charge over the current assets, instalments commencing from December 28,
1-Apr-15 23,658 3,623 20,035 fixed assets, land and receivables of 2013.
Sabah Forest Industries Sdn. Bhd.
 ConsoLidated notes to FinanCiaL stateMents AS AT MArch 31, 2017

Sl. Name of Bank Sanctioned As on date Total current Non- Interest Security repayment terms
No. Amount Outstanding current rate
Amount
34 ICICI Bank USD 25 31-Mar-17 13,590 13,590 - LIBOR + The loan is secured by way of first pari The loan is repayable by 24 unequal quarterly
Million 31-Mar-16 14,488 1,911 12,577 4.02% passu charge over the current assets, instalments commencing from January 31,
1-Apr-15 14,289 828 13,461 fixed assets, land and receivables of 2014.
Sabah Forest Industries Sdn. Bhd.
35 DBS Bank USD 15 31-Mar-17 8,759 - 8,759 Libor plus The loan is secured by way of first Any proceeds which are transferred or paid to
Million 31-Mar-16 - - - a margin of Preferential charge over shares of SFI. the Company by SFI (including any proceeds
1-Apr-15 - - - 3.25% from a disposal of all or any part of SFI’s assets
or business), in any manner whatsoever, shall
be applied in the following order:
i) First, in or towards discharging any fees
owing to the ECL, (ii) Second, any interest
payable in respect of the DBS BPH Credit
Agreement and (iii) third, the DBS BPH Credit
Agreement Liabilities and the Edelweiss Credit
Agreement Liabilities, pari passu and without
any preference between them, and (iv) fourth,
liabilities under the DBS BGPPL Guarantee.
36 ECL USD 5.4 31-Mar-17 4,365 - 4,365 13.00% The loan is secured by way of first The loan is repayable in 12 equal quarterly
Million 31-Mar-16 - - - Preferential charge over shares of Instalments starting by end of 15 month from
1-Apr-15 - - - Sabah Forest Industries Sdn. Bhd & the date of agreement 08th March, 2017 i.e. 8th
Ballarpur Paper Holdings B.V. June 18.
37 Standard Chartered 31-Mar-17 - - - Libor plus The loan is secured against pledge The loan is repayable at the end of three years
Bank 31-Mar-16 - - - a margin of of Ballarpur Paper Holdings B.V.'s from first utilisation date.
1-Apr-15 12,536 - 12,536 5.25% Shares.
38 CREDIT AGRICOLE USD 55 31-Mar-17 35,109 - 35,109 Libor plus The loan is secured by way of first The loan is repayable in 3 equal instalments
Million 31-Mar-16 35,671 - 35,671 a margin of Preferential charge over 21.50% starting from 48 months of agreement i.e.
1-Apr-15 44,522 - 44,522 4.80% of BILT Paper B.V. Shares owned january 2, 2015
by Ballarpur Industires Limited &
corporate guarantee of Ballarpur
Industries Limited.
39 JPM USD 24.5 31-Mar-17 14,899 - 14,899 Libor plus The loan is secured by way of SDLC The loan was drawn down on 13 July, 2015 and
Million 31-Mar-16 14,440 - 14,440 a margin of from Indusind Bank. is repayable after 36 months of utilisation.
1-Apr-15 - - - 1.50%
40 ICICI BANK LIMITED USD 21.494 31-Mar-17 9,504 - 9,504 Eurabics The loan is secured by way of SDLC The loan is repayable in three equal
Million 31-Mar-16 14,529 - 14,529 plus a from Indusind Bank. installments starting from third year of the
1-Apr-15 14,620 - 14,620 margin of utilization date.
2.50%
41 IDBI BANK USD 20 31-Mar-17 12,787 - 12,787 Libor plus The loan is secured by way of corporate The loan is repayable in three annual equal
Million 31-Mar-16 13,003 - 13,003 a margin of guarantee of holding company instalments starts at the end of 4th, 5th and
1-Apr-15 - - - 4.80% Ballarpur Industries Limited. 6th year from the date of first utilisation i.e.
starting from October 6, 2019.

Consolidated FinanCials
ANNUAL REPORT 2016-17
111
 ConsoLidated notes to FinanCiaL stateMents AS AT MArch 31, 2017

112
Sl. Name of Bank Sanctioned As on date Total current Non- Interest Security repayment terms
No. Amount Outstanding current rate
Amount
42 YES Bank Limited 1,850 31-Mar-17 360 237 123 Base Rate + The loan is secured by exclusive The loan of ` 1650 Lacs is repayable by 20
31-Mar-16 753 372 381 2.85% charge on moveable fixed assets of the
quaterly instalment starting from July, 2011
1-Apr-15 935 374 562 company and immovable fixed assets and loan of ` 200 Lacs is repayable in 16
at Mysore. quaterly installments starting from the end of
moratorium period of 12 Month i.e. from Nov
2016.

ANNUAL REPORT 2016-17

43 YES Bank Limited 3 31-Mar-17 0 0 - 13.10% The loan is secured by way of first The loan is repayable by 48 monthly instalment
31-Mar-16 1 1 0 charge on the vehicle financed. commencing from May 2013.
1-Apr-15 2 1 1
44 YES Bank Limited 6,500 31-Mar-17 6,426 - 6,426 MCLR + (1) First charges on all Current The loan is repayable by 16 quarterly
31-Mar-16 - - - 0.65% Assets amd Movable Fixed Assets. (2) Instalments from the end of monotorium period

BALLARPUR INDUSTRIES LIMITED

1-Apr-15 - - - Exclusive charges by way of Deed of of 12 month from the date of first disbursement
Hypothication over Purchase Order i.e. April 2018.
Receivable of INR 750 Million from
Ballarpur Industries Ltd.
45 YES Bank Limited 11 31-Mar-17 4 4 0 10.24% The loan is secured by way of first The loan is repayable by 36 equal Instalments
31-Mar-16 7 3 4 charge on the vehicle financed. from May 2015
1-Apr-15 10 4 6
*Loan from South Indian Bank has been absolutely assigned and transferred to Phoenix ARC Private Limited w.e.f. 17.03.2017 toghether with all securities, rights and interests in all agreements, deeds
and documents in relation to or about to the said debts and now company will deal directly with Phoenix in all repects in relation to this debt.
ConsoLidated notes to FinanCiaL stateMents AS AT MArch 31, 2017

` in Lacs

23 OThEr FINANcIAL LIABILITIES

Particulars As at As at As at
31st March-2017 31st March-2016 1st April-2015
Security Deposit 3,834 4,740 4,674
3,834 4,740 4,674

24 PrOvISIONS
Particulars As at As at As at
31st March-2017 31st March-2016 1st April-2015
Provisions for employee benefits :-
- Provision for gratuity 6,905 7,043 6,391
- Provision for leave encashment 2,120 1,882 1,386
9,025 8,925 7,777

25 DEFErrED TAX LIABILITY (NET)

Particulars As at As at As at
31st March-2017 31st March-2016 1st April-2015
Deferred Tax Liabilities (Net) 13,306 8,536 9,488
(Difference in Tax Base of Property, Plant and Equipments)
13,306 8,536 9,488
25.1 reconcilliation of tax expenses and the accounting profit multiplied by domestic tax rate:
Since the Company has incurred Business loss during the year 2016-17 and previous year 2015-16 and no tax is payable for those years
as per provisions of Income Tax Act, 1961, the calculation of effective tax rate is not relevent and hence, not given.
25.2 The Company has recognised deferred tax assets on carry forward business losses as sufficient future taxable income will be available
against which deferred tax assets can be realised considering its present order book and anticipated orders.

26 OThEr NON cUrrENT LIABILITY

Particulars As at As at As at
31st March-2017 31st March-2016 1st April-2015
Other Liabilities 22 23 1
22 23 1

27 TrADE PAYABLES
Particulars As at As at As at
31st March-2017 31st March-2016 1st April-2015
For Acceptances
- To micro,small and medium enterprises 893 942 297
- Payable to Related Parties 11,311 12,947 8,573
- Other payables 85,330 238,390 220,336
97,534 252,279 229,206
Micro and Small Enterprises under the Micro and Small Enterprises Development Act, 2006 have been determined based on the
information available with the Company and the required disclosures are given below:

Particulars As at As at As at
31st March-2017 31st March-2016 1st April-2015
Principal amount due & remaining unpaid 549 112 80
Interest due on above & the unpaid interest 78 10 1
Interest paid on all delayed payments under the MSMED Act - - -
Payment made beyond the appointed day during the year - 4 1
Interest due and payable for the period of delay 0 4 1
Interest accrued & remaining unpaid 78 10 1
Interest remaining due and payable even in succeeding years 0 - -

Consolidated FinanCials 113

ANNUAL REPORT 2016-17
ConsoLidated notes to FinanCiaL stateMents AS AT MArch 31, 2017

` in Lacs

28 OThEr FINANcIAL LIABILITIES

Particulars As at As at As at
31st March-2017 31st March-2016 1st April-2015
Current maturities of long term debt 205,362 86,582 78,822
Current Maturities of Finance Lease Obligations - 4 -
Bank book overdrawn 2,031 2,385 6,789
Interest accrued but not due on borrowings 41,416 9,552 5,880
Security deposits 1,690 2,033 2,133
Payables for capital goods 3,390 3,385 3,491
Payable to employee 14,749 7,520 4,680
Liability For Compulsory / Optional Buyback 179 181 185
Other Payables 3,794 101 2,058
Unpaid dividends 67 80 86
Derivative Financial Instruments ( Interest Swap) 1,337 2,009 1,131
Interest Accured On Secutiry Deposits 267 293 197
274,282 114,125 105,452

29 OThEr cUrrENT LIABILITIES

Particulars As at As at As at
31st March-2017 31st March-2016 1st April-2015
Advance received from customers 1,340 3,215 7,544
Statutory dues 8,657 8,719 6,877
9,997 11,934 14,421

30 PrOvISIONS
Particulars As at As at As at
31st March-2017 31st March-2016 1st April-2015
Provisions for employee benefits :
- Provision for gratuity 1,560 1,002 1,167
- Provision for leave encashment 583 439 498
Others provisions (Net of payment) (refer below note 30.1) 2,355 2,245 1,969
4,498 3,686 3,634

30.1 The Company is carrying provision for obligation as on Balance Sheet date, which may result in outflow of resources. The following is
the disclosure of such provisions covered under Ind AS 37.
As at Provision Provision As at
1st April-2015 During the Year Utilised/reversed 31st March-2016
During the Year
Anti dumping duty* 27 - - 27
Water Cess 1,881 391 120 2,152
Provision for Sales tax** 61 5 - 66

As at Provision Provision As at
1st April-2016 During the Year Utilised/reversed 31st March-2017
During the Year
Anti dumping duty* 27 - - 27
Water Cess 2,152 225 120 2,257
Provision for Sales tax** 66 5 - 71
* Represents provisions against anti dumping duty case for which appeal has been filed before CESTAT.
** Represents provisions against sales tax cases for which appeal has been filed before Punjab VAT Tribunal at Chandigarh.

31 cUrrENT TAX LIABILITY (NET)

Particulars As at As at As at
31st March-2017 31st March-2016 1st April-2015
Provision For Taxation Including Mat 3,420 1,411 1,254
3,420 1,411 1,254

114 BALLARPUR INDUSTRIES LIMITED

ANNUAL REPORT 2016-17
ConsoLidated notes to FinanCiaL stateMents
FOr ThE FINANcIAL
YEAr ENDED MArch 31, 2017

` in Lacs

32 rEvENUE FrOM OPErATIONS

Particulars Year ended Year ended
31.03.2017 31.03.2016
Sale of products
Paper (including coated ) 202,839 435,700
Pulp 115 1,445
Services 12 123
Others 9,172 3,370
212,138 440,638
Other operating revenue
Mega project benefit 3,100 4,716
Export Incentive / Scraps sale 1,468 1,943
Sub Total 4,568 6,659
216,706 447,297

33 OThEr INcOME
Particulars Year ended Year ended
31.03.2017 31.03.2016
Profit on sale of PPE (Net) 3,494 2,802
Gain on foreign currency fluctuations 451 267
Rent and license fee 83 109
Unspent liabilities and excess provisions of earlier years written back 91 507
Interest Received on VAT refund 84 -
Other non operating income (net of expenses directly attributable to such income) 2,331 769
6,534 4,454

34 cOST OF MATErIAL cONSUMED

Particulars Year ended Year ended
31.03.2017 31.03.2016
Bamboo 7,653 10,240
Wood and wood species 30,371 56,011
Chemicals 31,655 65,455
Wood pulp 32,109 84,962
Packing materials 4,564 10,611
Others 1,156 1,060
107,508 228,339

35 INcrEASE/(DEcrEASE) IN STOcK
Particulars Year ended Year ended
31.03.2017 31.03.2016
Stock at the beginning of the Year
Finished goods
Paper 22,008 26,422
Pulp 57 397
22,065 26,819
work in Progress
Paper 10,170 13,947
Pulp 2 1,219
10,172 15,166
Total (A) 32,237 41,985
Stocks at the end of the Year
Finished goods
Paper 5,980 22,008
Pulp - 57
5,980 22,065

Consolidated FinanCials 115

ANNUAL REPORT 2016-17
ConsoLidated notes to FinanCiaL stateMents
FOr ThE FINANcIAL
YEAr ENDED MArch 31, 2017

` in Lacs
Particulars Year ended Year ended
31.03.2017 31.03.2016
work in Progress
Paper 3,272 10,170
Pulp - 2
3,272 10,172
Total (B) 9,252 32,237
Discontinued Operation (Ç) (43) 1,317
Increase /(Decrease) in Stocks(A-B-c) 23,028 8,431

36 EMPLOYEE BENEFIT EXPENSES

Particulars Year ended Year ended
31.03.2017 31.03.2016
Salaries and wages 27,902 27,058
Contribution to provident and other funds 1,352 1,385
Staff welfare expenses 1,366 1,514
30,620 29,957

37 FINANcE cOSTS
Particulars Year ended Year ended
31.03.2017 31.03.2016
Interest expenses 81,109 55,083
Other borrowing costs 7,218 650
Net loss / (gain) in foreign currency transaction and translation 4,841 6,434
Less: Interest earned (3,084) (16,250)
90,084 45,917

38 OThEr EXPENSES
Particulars Year ended Year ended
31.03.2017 31.03.2016
Consumption of stores and spare parts 3,542 6,613
Power and fuel 25,050 48,459
Excise duty on year end inventory of finished goods (819) (131)
Rent 2,928 2,246
Repairs to buildings 247 369
Repairs to machinery 2,787 3,253
Repairs others 552 604
Insurance 458 547
Rates and taxes 679 524
Other manufacturing expenses 404 1,199
Office & other expenses 6,806 1,593
Bank charges 145 69
CSR Expenses 79 290
Selling expenses 1,801 663
Bad Debts 589 -
Inventory written off 380 -
Assets discarded - 5
Carriage and freight 2,714 5,848
Detention & demmurage charges 3,480 -

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ANNUAL REPORT 2016-17
ConsoLidated notes to FinanCiaL stateMents
FOr ThE FINANcIAL
YEAr ENDED MArch 31, 2017

` in Lacs
Particulars Year ended Year ended
31.03.2017 31.03.2016
Director sitting fees 89 114
*Legal and professional charges 2,109 1,383
Miscellaneous Expenses 7 -
54,027 73,648
*Legal & Professional Expenses includes Auditor Remuneration (Refer Note. 43(a)).

39 EXcEPTIONAL ITEMS
Particulars Year ended Year ended
31.03.2017 31.03.2016
Impairment of Assets 25,149 -
Penal Interest 5,481 -
Others - (31)
Total 30,630 (31)

39.1 Impairment of Asset review of one unit at 'Kamplapuram'

Due to non-operation of unit at 'Kamlapuram', its plant was not serviced / maintained in satisfactory running condition , thereby requiring
impairment testing under Ind AS 36. The unit had appointed a registered valuer and based on his report an impairment loss amounting to
` 20,100 Lacs has been charged to Profit & Loss account under exceptional item. To arrive at the impairment amount,Valuer have adopted
Fair Market Value using CostApproach, applying relevant index and relevant reduction factors as the plant was not in operation for almost
36 months. Further, Company has also written off the inventory of ` 4,771 Lac and advance to suppliers of ` 278 Lac under exceptional
item of Kamlapuram Unit.
Assets are tested for impairment whenever there are any internal or external indicators of impairment.
Impairment test is performed at the level of each Cash Generating Unit (‘CGU’) or groups of CGUs within the Company at which the
goodwill or other assets are monitored for internal management purposes, within an operating segment.
The impairment assessment is based on higher of value in use and value from sale calculations.
The measurement of the cash generating units’ value in use is determined based on financial plans that have been used by management
for internal purposes. The planning horizon reflects the assumptions for short to- mid term market conditions.
Key assumptions used in value-in-use calculations:
- Operating margins (Earnings before interest and taxes)
- Discount rate
- Growth rates
- Capital expenditures
Operating margins: Operating margins have been estimated based on past experience after considering incremental revenue arising out
of adoption of valued added and data services from the existing and new customers, though these benefits are partially offset by decline
in tariffs in a hyper competitive scenario. argins will be positively impacted from the efficiencies and initiatives driven by the Company;
at the same time, factors like higher churn, increased cost of operations may impact the margins negatively.
Discount rate: Discount rate reflects the current market assessment of the risks specific to a CGU or group of CGUs. The discount rate
is estimated based on the weighted average cost of capital for respective CGU or group of CGUs.
growth rates: The growth rates used are in line with the long term average growth rates of the respective industry and country in which
the Company operates and are consistent with the forecasts included in the industry reports.
capital expenditures: The cash flow forecasts of capital expenditure are based on past experience coupled with additional capital
expenditure required.

40 Financial Instruments

a) capital risk Management

The company manages its capital to ensure the Company will be able to continue as a going concern while maximising the return
to stakeholders through the optimisation of the debt and equity balances.

Consolidated FinanCials 117

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ConsoLidated notes to FinanCiaL stateMents AS AT MArch 31, 2017

The Company monitors capital using gearing ratio, which is capital divided by net debt.
` in Lacs
Particulars As at As at
31st March-2017 31st March-2016
Loans and borrowings 983,463 815,832
Less: cash and cash equivalents 11,014 24,242
Net debt 972,449 791,590
Total capital 119,302 285,185
Capital and net debt 1,091,751 1,076,775
Gearing ratio 0.12 0.36

b) categories of financial instruments

Particulars As at As at
31st March-2017 31st March-2016
Financial Assets
at amortiesed cost:-
Loans and receivables:
Investments in subsidiaries, assiciates and joint ventures 4,056 4,056
Trade and other receivables 7,060 36,588
Refundable deposits 2,113 2,247
Loans 59,645 43,398
Cash and bank balances 12,298 25,221
Other Financial Assets 5,578 9,127
at fair value :-
Investments - 960
Financial Liabilities
Bank borrowings (including current maturities) 942,046 806,284
Interest accrued but not due on borrowings 41,417 9,552
Derivative Financial Instruments ( Interest Swap) 1,337 2,009
Trade payables 97,534 252,279
Payable to employees 14,749 7,520
Payables for capital goods 3,390 3,385
Security deposits including interest there on 5,791 7,066
Other financial liability 6,071 2,746

c) Financial risk Management Objectives and Policies

The operations of the Company are subject to a variety of financial risks, including market risk, foreign currency risk, credit risk,
interest rate risk and liquity risk. The Company has formulated a financial risk management framework whose principle objective
is to minimise the Company's exposure to risks and/or costs associated with the financing, investing and operating activities of the
Company.
Various risk management policies are approved by the Board for monitoring on the day-to-day operations for the control and
management of the risks associated with financial instruments.
i) Market risk
Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market
prices. Market prices comprise three types of risk: currency rate risk, interest rate risk and other price risks, such as equity price
risk and commodity risk. Financial instruments affected by market risk include loans and borrowings, deposits, investments, and
derivative financial instruments.
(a) Foreign exchange risk and sensitivity
The Company transacts business primarily in Indian Rupee, USD, Euro, GBP and JPY and other foreign currency. The Company
has obtained foreign currency loans and has foreign currency trade payables and receivables and is therefore, exposed to
foreign exchange risk. Certain transactions of the Company act as a natural hedge as a portion of both assets and liabilities
are denominated in similar foreign currencies. For the remaining exposure to foreign exchange risk, the Company adopts a
policy of selective hedging based on risk perception of the management. Foreign exchange hedging contracts are carried at
fair value.

118 BALLARPUR INDUSTRIES LIMITED

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ConsoLidated notes to FinanCiaL stateMents AS AT MArch 31, 2017

The following table demonstrates the sensitivity in the USD, Euro, GBP, JPY and other currencies to the Indian Rupee with
all other variables held constant. The impact on the Company’s profit before tax and other comprehensive income due to
changes in the fair value of monetary assets and liabilities is given in respect to A 50 basis point increase or decrease is used
when reporting interest rate risk internally to key management personnel and represents management's assessment of the
reasonably possible change in interest rates.

Particulars As at As at
31st March-2017 31st March-2016
United States Dollar 9,091 9,696
Euro (28) (28)
GBP (1) (1)
Japenese Yen (2) (2)
Malaysian Ringgit (3,567) (3,259)
The assumed movement in exchange rate sensitivity analysis is based on the currently observable market environment.
Summary of exchange difference accounted in Statement of Profit and Loss:

Particulars Year ended Year ended

31.03.2017 31.03.2016
currency fluctuations
Net foreign exchange (gain) / losses shown as operating expenses (451) (267)
Net foreign exchange (gain) / losses shown as finance cost 4,841 6,434
Total 4,390 6,167
(b) Interest rate risk and sensitivity
Interest rate risk is the risk that the fair value of future cash flows of the Company's financial instruments will fluctuate
because of changes in market interest rates.
The Company's exposure to interest rate risk arises primarily because of the bank borrowings comprising term loans, loans
against import and revolving credits which are at the aggregate of Base rate / MCLR and the apprlicable margin. The interest
rates for the said bank borrowings are disclosed in Note No. 22.
The sensitivity analyses below have been determined based on the exposure to interest rates for non-derivative instruments
at the end of the reporting period. For floating rate liabilities, the analysis is prepared assuming the amount of the liability
outstanding at the end of the reporting period was oustanding for the whole year. A 50 basis point increase or decrease is used
when reporting interest rate risk internally to key management personnel and represents management's assessment of the
reasonably possible change in interest rates.

Interest rate sensitivity March 31, 2017 March 31, 2016

INR borrowings (2,878) (2,381)
USD borrowings (705) (590)
The assumed movement in basis points for interest rate sensitivity analysis is based on the currently observable market
environment.
(c) commodity price risk and sensitivity
The Company has in place policies to manage the Company's exposure to fluctuation in the prices of the key materials and
commodities used in the operations. Nevertheless, it believes that it has competitive advantage in terms of high quality
products and by continually upgrading its expertise and range of products to meet the needs of its customers. The company
enters into fixed price contracts to establish determinable prices for raw materials and consumables used. The management
does not consider the Company's exposure to market risk significant as on March 31, 2017. Therefore, sensitivity analysis for
market risk is not disclosed.
credit risk
Credit risk arises from the possibility that counter party may not be able to settle their obligation as agreed. To manage this,
Group Periodically assesses the financial reliability of customers, taking into account the financial condition, current economic
trends, and analysis of historical bad debts and ageing of accounts receivable, Individual risk limits are set accordingly. The
company does not hold any colleteral on the balance outstanding.

Consolidated FinanCials 119

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Trade receivables
The Company extends credit to customers in normal course of business based upon careful evaluation of the customer's
financial condition and credit history. Outstanding customer receivables are regularly monitored. The ageing of trade
receivable is as below:
` in Lacs
Particulars Past due Total
upto more than 6
6 months months
Trade receivables
As at March 31, 2017
Secured 471 15 486
Unsecured 5,568 1,006 6,574
gross Total 6,039 1,021 7,060
Provision for doubtful receivables - - -
Net Total 6,039 1,021 7,060
As at March 31, 2016
Secured 1,081 65 1,146
Unsecured 34,339 1,103 35,442
Total 35,420 1,168 36,588
Provision for doubtful receivables - - -
Net Total 35,420 1,168 36,588

Financial instruments and cash deposits

The Company considers factors such as track record, size of the institution, market reputation and service standards to select
the banks with which balances and deposits are maintained. Generally, the balances are maintained with the institutions with
which the Company has also availed borrowings. The Company does not maintain significant cash and deposit balances other
than those required for its day to day operations.
Liquidity risk
Liquidity risk is the risk that the Company may not be able to meet its present and future cash and collateral obligations
without incurring unacceptable losses.
The results of the Company for the current year have been impacted due to lack of adequate working capital. The lenders of
the company have invoked standstill provision due to delay in repayments of debts and payment of interest. The company is in
discussions with banks to finalise & implement SDR / Other restructuring packages.
The Company is required to maintain ratios (including total debt to EBITDA / net worth, EBITDA to gross interest, debt service
coverage ratio and secured coverage ratio) as mentioned in the loan agreements at specified levels. In the event of failure to
meet any of these ratios these loans become callable at the option of lenders, except where exemption is provided by lender.
Maturity profile of financial liabilities
The table below provides regarding the remaining contractual maturities of financial liabilities at the reporting date based on
contractual undiscounted payments.
` in Lacs
Particulars As at 31st March-2017 As at 31st March-2016
Less than 1 to 5 years Total Less than 1 to 5 years Total
1 year 1 year
Due to related party 11,311 - 11,311 12,947 - 12,947
Trade payables 86,223 - 86,223 239,332 - 239,332
Payable to employees 14,749 - 14,749 7,520 - 7,520
Derivative Financial Instruments ( 1,337 - 1,337 2,009 - 2,009
Interest Swap)
Payables for capital goods 3,390 - 3,390 3,385 - 3,385
Security deposits including interest 1,957 3,834 5,791 2,326 4,740 7,066
there on
Other financial liability 6,072 - 6,072 2,746 - 2,746
Total 125,039 3,834 128,873 270,265 4,740 275,005

120 BALLARPUR INDUSTRIES LIMITED

ANNUAL REPORT 2016-17
ConsoLidated notes to FinanCiaL stateMents
FOr ThE FINANcIAL
YEAr ENDED MArch 31, 2017

41. SEgMENT rEPOrTINg

Segments have been identified taking into account nature of product and differential risk and returns of the segment. These business
segments are reviewed by the Chief Operating Officer of the Company (Chief operating decision maker).
The Expenses, which are not directly identifiable to a specific business segment are clubbed under “Unallocated Corporate Expenses” and
similarly, the common assets and liabilities, which are not identifiable to a specific segment are clubbed under “Unallocated Corporate
Assets/ Liabilities" on the basis of reasonable estimates.
` in Lacs
Particulars YEAr PAPEr PAPEr PULP OThErS TOTAL
AND PAPEr
PrODUcTS
revenues
Gross Sale to External Customers 2016-17 188,877 9,695 115 13,452 212,139
Excise Duty 2016-17 (10,563) (420) - (334) (11,317)
Gross Sale to External Customers 2015-16 373,799 49,874 1,445 15,520 440,638
Excise Duty 2015-16 (21,217) (2,159) (81) (385) (23,842)
Total Segment Revenues (Net of Excise) 2016-17 178,314 9,275 115 13,118 200,822
2015-16 352,582 47,715 1,364 15,135 422,136
Revenue from discontinued operation 2016-17 11,016 - - - 11,016
2015-16 48,628 - - - 48,628
Segment results 2016-17 (31,241) 97 (4,860) - (36,004)
2015-16 55,862 829 (5,525) (555) 50,611
Less: Unallocated Corporate Expenses 2016-17 309
(Net of other income)
2015-16 308
Profit Before Interest, Tax & Exceptional 2016-17 (36,313)
Items
2015-16 50,303
Interest & Finance cost(Net of Income) 2016-17 90,084
2015-16 45,917
Profit Before Tax & Exceptional Items 2016-17 (126,397)
2015-16 4,386
Profit/(loss) from discontinued operation 2016-17 (25,408)
before tax
2015-16 (32,932)
Exceptional Items 2016-17 30,630
2015-16 (31)
Profit Before Tax after Exceptional Items 2016-17 (199,723)
2015-16 (28,609)
Provision For Tax 2016-17 -
- Current Tax (Net of MAT Credit Entitlement)
2015-16 283
- Tax expenses of discontinued operation 2016-17 17,287
2015-16 94
- Deferred Tax 2016-17 (13,541)
2015-16 (965)
Less: Excess Provision for Taxation relating 2016-17 -
to earlier Years
2015-16 -
Net Profit 2016-17 (186,182)
2015-16 (27,927)
Less : Minority Interest 2016-17 (50,003)
2015-16 (6,926)
Net Profit after Minority Interest and Share 2016-17 (136,179)
of Profit in Associates & before OCI
2015-16 (21,001)

Consolidated FinanCials 121

ANNUAL REPORT 2016-17
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FOr ThE FINANcIAL
YEAr ENDED MArch 31, 2017

` in Lacs
Particulars YEAr PAPEr PAPEr PULP OThErS TOTAL
AND PAPEr
PrODUcTS
Other Information
Segmental Assets 2016-17 1,203,356 37,256 31,044 - 1,271,656
2015-16 1,328,667 53,794 54,556 - 1,437,017
Unallocated Corporate assets 2016-17 48,510
2015-16 71,781
Total Assets 2016-17 1,320,166
2015-16 1,508,798
Segmental Liabilities 2016-17 183,937 6,724 6,554 - 197,215
2015-16 284,727 12,710 4,166 - 301,603
Unallocated Corporate Liabilities 2016-17 1,025
2015-16 9,734
Total Liabilities 2016-17 198,240
2015-16 311,337
Capital Expenditure during the period 2016-17 13,772
(Including Movements in CWIP & Capital
2015-16 59,431
Advances)
Depreciation 2016-17 24,970
2015-16 25,361
Amortisation 2016-17 2,429
2015-16 1,119
Total Liabilities Excludes Deferred Payment
Liabilities
Long Term Borrowings 2016-17 350,087
2015-16 412,923
Short Term Borrowings 2016-17 385,608
2015-16 305,974
Current Maturities of Long Term Debts 2016-17 205,362
2015-16 86,586
Deferred tax liabilities (Net) 2016-17 13,306
2015-16 8,536
Minority Interest 2016-17 48,262
2015-16 98,256
Net assets/liabilities directly associated with 2016-17 116,871
discontinue operations
2015-16 180,473

II. Secondary Segments (geographical Segments)

(a) Segmental revenue ` in Lacs
Year ended Year ended
31.03.2017 31.03.2016
Domestic 194,143 377,233
Overseas 17,996 63,405
TOTAL 212,139 440,638
(b) The location of Tangible/Intangible fixed asset ` in Lacs
As on As on
31st March-2017 31st March-2016
Domestic 824,707 935,802
Overseas 244,784 208,349
TOTAL 1,069,491 1,144,151

122 BALLARPUR INDUSTRIES LIMITED

ANNUAL REPORT 2016-17
ConsoLidated notes to FinanCiaL stateMents
FOr ThE FINANcIAL
YEAr ENDED MArch 31, 2017

42. EMPLOYEE BENEFITS

As per Ind AS-19 "Employee Benefits", the disclosure of employee benefits as defined in the accounting standard are given below:
Defined contribution Plan*
contribution to defined contribution Plan is recognized and charged off for the year, are as under :
` in Lacs
Defined contribution Plan: Year Ended Year Ended
31.03.2017 31.03.2016
Particulars 2017 2016
Employer’s contribution to provident fund 572 585
Employer’s contribution to superannuation fund 25 32
Employer’s contribution to pension scheme 648 641
* Includes charged to other accounts
Defined Benefit Plan
a) gratuity
In accordance with applicable Indian laws, the Company provides for gratuity, a defined benefit plan, covering eligible employees.
This Plan provides for a lump sum payment to vested employees on retirement, death, incapacity or termination of employment
of amounts that are based on salary and tenure of employment. Liability with regard to this plan are determined by actuarial
valuation.
b) Leave Encashment
The Company permits encashment of leave accumulated by their employees on retirement, separation and during the course
of service. The liability for encashment of leave is determined and provided on the basis of actuarial valuation performed by an
independent actuary at each balance sheet date. This Plan is completely un-fuded
c) reconciliation of opening and closing balances of the present value of the defined benefit obligations
` in Lacs
Defined Benefit Plan: 2016-17 2015-16
Particulars gratuity gratuity Leave gratuity gratuity Leave
Encashment Encashment
(Funded) (Unfunded) (Unfunded) (Funded) (Unfunded) (Unfunded)
Present value of obilgation as at the 675 7,567 3,083 606 7,156 1,884
beginning of the period
Current service cost 49 380 191 100 489 461
Interest Expense or cost 52 582 136 97 655 468
Acquisition - - - - - -
Re-Measurement (or Actuarial) - - - - - -
(gain) / (loss) arising from:
- change in demographic assumptions 18 0 0 1 (10) 5
- change in financial assumptions 30 189 75 3 124 29
- experience variance (i.e. Actual (27) 81 (238) (104) (331) (480)
experience vs assumptions)
- others - - - - - -
Past service cost - - 9 - - -
Effect of change in foreign exchange - - - - - -
rates
Benefits paid (27) (882) (553) (28) (516) (46)
Effects of business combinations or - - - - - -
disposals
Exchange differences - - - - - -
Present value of obligation as at the 770 7,918 2,703 675 7,567 2,321
end of the period
Note: There is difference in closing balance of 2015-16 and opening balance of 2016-17 in leave encashment as the basisi for
the same has been changed from basic salary to CTC.

Consolidated FinanCials 123

ANNUAL REPORT 2016-17
ConsoLidated notes to FinanCiaL stateMents
FOr ThE FINANcIAL
YEAr ENDED MArch 31, 2017

d) reconciliation of opening and closing balances of the present value of the defined benefit obligations
` in Lacs
Plan Asset: 2016-17 2015-16
Particulars gratuity gratuity Leave gratuity gratuity Leave
Encashment Encashment
(Funded) (Unfunded) (Unfunded) (Funded) (Unfunded) (Unfunded)
Fair value of plan assets as at the 197 - - 205 - -
beginning of the period
Investment Income 15 - - 16 - -
Contributions/Effects of business 38 99 90 4 56 26
combinations or disposals
Benefits Paid (26) (99) (90) (26) (56) (26)
Return on plan assets, excluding (1) - - (2) - -
amount recognised in net interest
expense
Effect of change in foreign exchange - - - - - -
rates
Fair value of plan assets as at the 223 - - 197 - -
end of the period

e) change in effects of assets ceiling

Effects of assets ceiling 2016-17 2015-16

Particulars gratuity gratuity Leave gratuity gratuity Leave
Encashment Encashment
(Funded) (Unfunded) (Unfunded) (Funded) (Unfunded) (Unfunded)
Effect of assets celing at the - - - - - -
beginning of the year
Interest expense or Cost (to the 50 - 23 45 - 23
extent not recognised in net interest
expenses)
Re-measurement (or acturial) (gain)/ 20 - (10) (0) - (27)
(loss) arising because of change in
effect assets ceiIing
Effect of assets celing at the end of 70 - 13 45 - (4)
the year
f) The components of Amounts recognised and charges off for the year are as under:

Particulars 2016-17 2015-16

gratuity gratuity Leave gratuity gratuity Leave
Encashment Encashment
(Funded) (Unfunded) (Unfunded) (Funded) (Unfunded) (Unfunded)
Currrent service cost 49 380 191 100 489 461
Past service cost - - 9 - - -
Loss / (Gain) on settlement
Net interest income / (cost) on the 37 582 136 81 655 468
net defined benefit liability (Assets)
Less Recovered from Holding
Company
Net cost recognised in Statement of 86 962 336 181 1,144 929
Profit/Loss
Other comprehensive Income:
Actuarial (gain) / losses
- change in demographic assumptions 17 0 0 1 (10) 5
- change in financial assumptions 30 189 75 3 124 29
- experience variance (i.e. Actual (27) 82 (238) (103) (331) (479)
experience vs assumptions)
- others - - - - - -
Return on plan assets, excluding (1) - - (2) - -
amount recognised in net net
interest expense

124 BALLARPUR INDUSTRIES LIMITED

ANNUAL REPORT 2016-17
ConsoLidated notes to FinanCiaL stateMents
FOr ThE FINANcIAL
YEAr ENDED MArch 31, 2017

` in Lacs
Particulars 2016-17 2015-16
gratuity gratuity Leave gratuity gratuity Leave
Encashment Encashment
(Funded) (Unfunded) (Unfunded) (Funded) (Unfunded) (Unfunded)
Re-measurement (or acturial) (gain)/ 20 - (10) (0) - (27)
(loss) arising because of change in
effect assets ceiIing
components of defined benefit 39 271 (173) (101) (217) (472)
costs recognised in other
comprehensive income
g) Balance Sheet Obligations

Particulars 2016-17 2015-16

gratuity gratuity Leave gratuity gratuity Leave
Encashment Encashment
(Funded) (Unfunded) (Unfunded) (Funded) (Unfunded) (Unfunded)
Present value of obligation as at the 770 7,918 2,703 675 7,567 2,321
end of the period
Fair value of plan assets as at the 223 - - 197 - -
end of the period
Liabilities/ (Assets) recognised in the 547 7,918 2,703 478 7,567 2,321
Balance Sheet
h) Economic Assumptions

Particulars 2016-17 2015-16

gratuity gratuity Leave gratuity gratuity Leave
Encashment Encashment
(Funded) (Unfunded) (Unfunded) (Funded) (Unfunded) (Unfunded)
Discount rate - 7.25% 7.25% 0.00% 7.70% 7.70%
Salary growth rate - 5.00% 5.00% 0.00% 5.00% 5.00%
Expected rate of return on plan - 0.00% 0.00% 0.00% 0.00% 0.00%
assets
i) Demographic assumptions

Particulars 2016-17 2015-16

gratuity gratuity Leave gratuity gratuity Leave
Encashment Encashment
(Funded) (Unfunded) (Unfunded) (Funded) (Unfunded) (Unfunded)
Retirement age (years) - 60 60 - 60 60
Mortality Rate (as % of IALM 06-08) - 100.00% 100.00% 0.00% 100.00% 100.00%
Withdrawal rate - 2.00% 2.00% 0.00% 2.00% 2.00%
Rate of leave availment - 0.00% 0.00% 0.00% 0.00% 0.00%
j) Sensitivity Anaiysis
Significant actuarial assumptions for the determination of the defined benefit obligation are discount rate, expected salary increase
ad mortality. The sensitivity analysis below have determined based on reasonable possible changes of the asumptions occuring at
the end of the reporting period, while holding all other assumptions constant. The result of sensitivity analysis is given below:

Particulars changes in 2016-17

Assumption PAID LEAvE grat. On roll grat. On contractor
Changes in % Impact % Impact % Impact % Impact % Impact % Impact
Assumption on defined on defined on defined on defined on defined on defined
benefit benefit benefit benefit benefit benefit
obligation obligation obligation obligation due obligation due obligation
due to due to due to to Decrease in to increase in due to
increase in Decrease in increase in assumption assumption Decrease in
assumption assumption assumption assumption
Discount rate 1% 1% -4% 5% -4% 5% -3% 4%
Salary growth rate 1% 1% 5% -5% 4% -4% 3% -3%
Attrition Rate 1% 1% 1% -1% 1% -1% 1% -1%
Mortality rate 1% 1% 0% 0% 0% 0% 0% 0%

Consolidated FinanCials 125

ANNUAL REPORT 2016-17
ConsoLidated notes to FinanCiaL stateMents
FOr ThE FINANcIAL
YEAr ENDED MArch 31, 2017

` in Lacs
2015-16
Particulars changes in PAID LEAvE grat. On roll grat. On contractor
Assumption Changes in % Impact on % Impact on % Impact % Impact on % Impact on % Impact on
Assumption defined benefit defined benefit on defined defined benefit defined benefit defined benefit
obligation due obligation due benefit obligation due obligation due obligation due
to increase in to Decrease in obligation due to Decrease in to increase in to Decrease in
assumption assumption to increase in assumption assumption assumption
assumption
Discount rate 1% 1% -3% 4% -4% 4% -2% 3%
Salary growth 1% 1% 4% -3% 4% -3% 3% -2%
rate
Attrition Rate 1% 1% 1% -1% 1% -1% 1% -1%
Mortality rate 1% 1% 0% 0% 0% 0% 0% 0%
k) Maturity Profile of defined benefit obligation (weighted Average)

Particulars 2016-17 2015-16

Leave gratuity gratuity Leave gratuity gratuity
Encashment Encashment
(Unfunded) (Funded) (Unfunded) (Unfunded) (Funded) (Unfunded)
Expected cash Flows Over the
next (valued on undiscounted
basis)
1 year 37 1,260 521 37 1,045 367
2 - 5 year 150 4,062 1,141 150 4,140 1,154
6 - 10 year 240 2,670 1,129 240 2,965 816
More than 10 year 1,271 5,155 1,911 1,271 5,670 1,395

43 OThEr DIScLOSUrES
` In Lacs
Particulars Year ended Year ended
31.03.2017 31.03.2016
a) Auditors remunearation
Statutory Auditors
i. Audit Fee (including Cost Audit Fees) 136 130
ii. Tax Audit Fee 21 22
iii. Certification Fees 20 -
iv. Other capacity (management services) 143 70
v. Reimbursement of Expenses 4 5
Total 324 227

(b) Expenditure on corporate Social responsibility :

Details of expenditure on Corporate Social Responsibility Activities as per Section 135 of the Companies Act, 2013 read with
schedule III are as below:
Particulars Year ended Year ended
31.03.2017 31.03.2016
Preventive health care and sanitation 11 35
Expenses for differently abled 12 43
Rural development 16 114
Livelihood Enhancement Projects 17 50
Provision made during the year 23 46
Others - 2
Total 79 290

126 BALLARPUR INDUSTRIES LIMITED

ANNUAL REPORT 2016-17
ConsoLidated notes to FinanCiaL stateMents AS AT MArch 31, 2017

` in Lacs

44 contingent Liablities and commitments

Particulars As at As at As at
31st March-2017 31st March-2016 1st April-2015
(to the extent not provided for)
1) contingent Liabilities:
Claims against the Company not acknowledged as debts 71,848 46,508 47,205
Guarantees 5,074 7,688 8,497
TOTAL (A) 76,922 54,196 55,702
2) commitments
Estimated amount of contracts remaining to be executed on capital -
account and not provided for (net of advances)
Property, Plant and Equipment 1,233 1,710 2,304
TOTAL (B) 1,233 1,710 2,304
TOTAL (A+B) 78,155 55,906 58,006
3) Odisha Pollution Control Board issued a notice to Unit sewa for recovery of ` 298 Crore for water drawn from Kolab river upto the
end of Dec-2008 for which reply has been filed. Currently, the challenge against the constitutional validity of this recovery is still
pending before High Court of Orissa.
4) In respect of loan availed by its foreign wholly owned subsdiary, Ballarpur International holding B.v
i) The Company has granted to the lender a corporate guarantee of USD 97.75 Million.
ii) The Company has executed an indemnity and undertaking for stand-by Letter of credit facility of USD 55 Million.
5) In respect of loan availed by its stepdown subsdiary, Bilt graphic Paper Products Limited
i) The Company has granted to the lender a corporate guarantee of ` 510 Crore.
ii) Ballarpur Paper Holding B.V. & Bilt Paper B.V. has jointly granted to the lender a corporate guarantee of USD equilant to ` 150
Crore.
6) In respect of loan availed by its subsdiary, Avantha Agritech Limited
i) The Company has provided a Put Option to the lendor, Yes Bank Limited of ` 65 Crore against his facility provide to borrower
Avantha Agritech Limited.
Note: It is not possible to predict the outcome of the pending litigations with accuracy, the Company believes, based on legal opinions
received, that it has meritorious defences to the claims. The management believe the pending actions will not require outflow of resources
embodying economic benefits and will not have a material adverse effect upon the results of the operations, cash flows or financial
condition of the Company.

45. Details of Specified Bank Notes held and transacted during the period from 8th November, 2016 to 30th December, 2016 as required
under McA Notification g.S.r. 308(E) Dated March, 31, 2017:
` in Lacs
Particulars Specified Other Total
Bank Notes Denomination
Notes
Closing Cash in Hand as on 08-11-2016 12.40 3.54 15.94
Add: Permitted Receipts - 42.94 42.94
Less: Permitted Payments 0.02 35.68 35.70
Less: Amount deposited in Banks 12.38 - 12.38
closing cash in hand as on 30-12-2016 - 10.81 10.81
* For the purposes of this clause, the term ‘Specified Bank Notes’ shall have the same meaning provided in the notification of the
Government of India, in the Ministry of Finance, Department of Economic Affairs number S.O. 3407(E), dated the 8th November, 2016.
46. The liability of the put option of subsidiaries, if any shall be determined and provided on settlement in view of on-going discussions with
banks.
47. The results of the company for the current year have been impacted due to lack of adequate working capital. The lenders of the company
have invoked standstill provision due to delays in repayment of debts & payment of interest. The company is in discussions with banks to
finalise & implement SDR/Other restructuring packeges.

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ANNUAL REPORT 2016-17
ConsoLidated notes to FinanCiaL stateMents
FOr ThE FINANcIAL
YEAr ENDED MArch 31, 2017

48 EArNINgS PEr ShArE

The following is a reconciliation of the equity shares used in the computation of basic and diluted earnings per equity share:
(Number of shares)
Particulars Year Ended Year Ended
March 31, 2017 March 31, 2016
Issued equity shares 655,523,839 655,523,839
Weighted average shares outstanding - Basic and Diluted - (A) 655,523,839 655,523,839
Net profit available to equity holders of the Company used in the basic and diluted earnings per share was determined as follows :-

Particulars Year Ended Year Ended

March 31, 2017 March 31, 2016
Profit and loss after tax for Continuing operation (Net of Minority) for EPS - (B) (110,203) 2,056
Profit and loss after tax for discontinuing operation (Net of Minority) for EPS - (C) (25,977) (23,056)
Profit and loss after tax for EPS - (D) (136,179) (21,001)
Basic Earnings per share for continuing operation (B/A) (16.81) 0.31
Diluted Earnings per share for continuing operation (B/A) (16.81) 0.31
Basic Earnings per share for discontinue continuing operation (C/A) (3.96) (3.52)
Diluted Earnings per share for discontinue continuing operation (C/A) (3.96) (3.52)
Basic Earnings per share for continuing operation (D/A) (20.77) (3.20)
Diluted Earnings per share for continuing operation (D/A) (20.77) (3.20)
The number of shares used in computing basic EPS is the weighted average number of shares outstanding during the year.
The diluted EPS is calculated on the same basis as basic EPS, after adjusting for the effects of potential dilutive equity, if any.

49 rELATED PArTY TrANSAcTIONS

In accordance with the requirements of IND AS 24, on related party disclosures, name of the related party, related party relationships,
transactions and outstanding balances including commitments where control exits and with whom transactions have taken place
during reported year are:
a) Name of the related Parties with whom Transactions were carried ot during the year and nature of relationship:
(1) Key Management Personnel
Mr. Gautam Thapar
Mr. B Hariharan
(2) Other related Parties *
*Companies over which persons(s) having direct/indirect control or significant control influence over the company is able to
exercise significant influence
Arizona Printers & Packers Private Limited
Avantha Holdings Limited
Avantha Power & Infrastructure Limited
Avantha Realty Limited
BILT Industrial Packaging Company Limited
Biltech Building Elements Limited
CG Power and Industrial Solutions Limited (Formerly Crompton Greaves Limited, Name change w.e.f. 27-02-2017)
Global Green Company Limited
Imerys NewQuest(India) Pivate Limited
Jhabua Power Limited
Korba West Power Company Limited
Krebs & Cie (India) Limited
Leading Line Merchant Traders (P) Limited
Avantha Business Solutions Limited (Formerly known as Salient Business Solutions Limited)
Mirabelle Trading Pte. Limited
Prestige Wines and Spirits (P) Ltd.
Avantha International Assets B.V.
Avantha International Holding B.V.
Saraswati Travels (P) Limited

128 BALLARPUR INDUSTRIES LIMITED

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ConsoLidated notes to FinanCiaL stateMents AS AT MArch 31, 2017

SMI Newquest India Private Limited

Solaris Chemtech Industries Limited
UHL Power Company Ltd.
Avantha Technologies Ltd
MTP New Ocean (Mauritius) Limited
TAF Asset 2 B.V.
(b) Details of transaction with related parties
(Financial transactions have been carried out in the ordinary course of business and/or in discharge of contract obligation

` in Lacs
S. Particulars Year ended Year ended
No. 31.03.2017 31.3.2016
a) Sale of goods, rent received & allocation of common expenses for rendering
corporate service:
- Other Related Party 1,446 4,104
b) Purchase of goods & Services, rent and commission/royalty:
- Other Related Party 7,022 34,624
c) Advances given during the year
- Other Related Party 5,239 5,863
d) Advances received back during the year
- Other Related Party 3,587 673
e) remuneration (net of recovery) :
- Key management Personnel 1 777
f) royalty Paid/Payable
- Other Related Party - 65
g) Outstanding Balances at the end of the year
- Key management Personnel 5 16
- Other Related Party 22,054 22,327

50 Transition to IND AS

Basis of preparation
For all period up to and including the year ended March 31, 2016, the Company has prepared its financial statements in accordance with
generally accepted accounting principles in India (Indian GAAP). These financial statements for the year ended March 31, 2017 are the
Company’s first annual IND AS financial statements and have been prepared in accordance with IND AS.
Accordingly, the Company has prepared financial statements which comply with IND AS applicable for periods beginning on or after
April 1, 2015 as described in the accounting policies. In preparing these financial statements, the Company’s opening Balance Sheet
was prepared as at April 1, 2015 the Company’s date of transition to IND AS. This note explains the principal adjustments made by the
Company in restating its Indian GAAP Balance Sheet as at April 1, 2015 and its previously published Indian GAAP financial statements for
the year ended March 31, 2016.
Exemptions
Ind AS 101 allows first-time adopters certain exemptions from the retrospective application of certain requirements under Ind AS. The
Company has applied the following exemptions:
• to measure an item of property, plant and equipment at the date of transition to Ind AS at its fair value and use that fair value as its
deemed cost at that date.
• to apply previous GAAP carrying amount of its investment in Subsidiaries, Associates and Joint enture as deemed cost as on the
date of transition to Ind AS.
• continue the policy adopted for accounting for exchange differences arising from translation of long-term foreign currency monetary
items recognised in the financial statements for the period ending immediately before the beginning of the first Ind AS financial
reporting period as per the previous GAAP.
Exceptions
The following mandatory exceptions have been applied in accordance with Ind AS 101 in preparing the financial statements.
(a) Estimates
The estimates at 1st April 2015 and 31st March 2016 are consistent with those made for the same dates in accordance with India
GAAP (after adjustments to reflect any difference if any, in accounting policies) apart from the following items where application of
Indian GAAP did not require estimation:
• Impairment of financial assets are based on expected credit loss model

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ConsoLidated notes to FinanCiaL stateMents AS AT MArch 31, 2017

The estimates used by the Company to present these amounts in accordance with Ind AS reflect conditions as at the transition
date and as of 31st March 2016.
(b) Derecognition of financial assets and financial liabilities
The company has elected to apply the derecognition requirements for financial assets and financial liabilities in Ind AS 109
prospectively for transactions occurring on or after the date of transition of Ind AS.
(c) classification and measurement of financial assets
The Company has classified the financial assets in accordance with Ind AS 109 on the basis of facts and circumstances that exist at
the date of transition to Ind AS.
The following reconciliations and explanatory notes thereto describe the effects of the transition on the Ind AS Opening statement
of financial position as at April 1, 2015. All explanations should be read in conjunction with the accounting policies of the company
as disclosed in the Notes to the Accounts.
(` in Lacs)
Particulars Note No. 1-April-15 31-March-16
Other Equity as per Previous gAAP 307,085 263,523
Adjustments to other equity
Fair valuation of Assets, Financial Assets & Financial Liabilities (III) a 6,504 5,378
Fair valuation of Biological Assets (III) b 27,406 20,996
Impact of effective interest rate on borrowings (III) c (18,361) (15,049)
Proposed dividend (including Corporate Dividend Tax) (III) d 1,578 -
Incremental Depreciation due to fair valuation - 427
Unwinding of Discount related to deferred sales tax liability - (70)
Deferred tax liabilities (327) (629)
Reclassification of acturial gain / losses, arising in respect of (414) (1,203)
employee benefit schemes, to Other Comprehensive Income (OCI)
Other Adjsutmernts (2,063) (1,300)
Other Equity as per Ind AS 321,408 272,073
II. The following reconciliations and explanatory notes thereto describe the effects of the transition on the Ind AS on Statement of
Profit and Loss for the year ended March 31, 2016. All explanations should be read in conjunction with the accounting policies of the
company as disclosed in the Notes to the Accounts.
(` in Lacs)
Particulars 2015-16
Profit / (Loss) as per Previous GAAP (22,941)
Adjustments
a. Fair valuation of Biological Assets (III) b (6,410)
b. Amortisation of Transaction costs using Effective Interest Rate (III) c 4,059
Method
c. Impact on Depreciation due to fair valuation 427
d. Unwinding of discount related to liabilities (70)
e. Deferred tax liablities (net) (629)
f. Reclassification of acturial gain / losses, arising in respect of (789)
employee benefit schemes, to Other Comprehensive Income (OCI)
g. Other Adjustments (1,574)
Total adjustments (4,986)
Profit / (Loss) as per Ind AS (27,927)
III. Notes to the reconciliation
a. The Company has as at the date of transition elected to measure Plant and Equipments under Property, Plant and equipment
at fair value as deemed cost.
On adoption of Ind-AS, the Company undertook a detailed evaluation of its financial assets & financial liabilities as at the date
of transition i.e. April 1, 2015. These assets & liabilities were assessed for future economic benefits expected to flow to the
Company or collection in accordance with Ind-AS 109. Ind- AS 109 requires measurement of provision for bad and doubtful
debts to be determined with reference to the expected credit loss model. Such assets , based on evaluation, have been
measured at the present value discounted at effective interest rate and adjusted to other reserve as at transition date.
b. nder Previous GAAP, the Company recognised iological assets at cost; however, Ind AS requires the company to recognise
the Biological asses at fair value and the changes in fair valuation of Biological assets are recognised in Statement of Profit
and Loss.
c. Under Previous GAAP, Costs incurred in raising funds are amortised over the period for which the funds have been obtained,
using time proportionate basis. However, as per Ind AS, the transaction costs are accounted using Effective Interest Rate
Method.

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ConsoLidated notes to FinanCiaL stateMents AS AT MArch 31, 2017

d. Under Previous GAAP, proposed dividend including dividend distribution tax (DDT), are recognised as liability in the period to
which they relate, irrespective of when they are declared. Under Ind AS, proposed dividend is recognised as a liability in the
period in which it is declared by the Company, usually when approved by shareholders in the general meeting, or paid.

51 DIScONTINUED OPErATIONS

SABAh FOrEST INDUSTrIES SDN.BhD.

The Major classes of assets and Liabilities of the discontinued operations are as under:
(` in Lacs)
Particulars As at As at
31st March-2017 31st March-2016
Assets
Property, Plant and Equipment 172,238 203,265
Capital work-in-progress 55 76
Leasehold land 4,241 5,009
Biological assets other than bearer plants 68,250 70,472
Deferred tax assets (net) - 18,313
Inventories 13,183 16,457
Trade receivables 45 1,707
Cash and cash equivalents 97 181
Loans 5 0
Others Financial Assets 25 30
Other current assets 1,420 932
Total (A) 259,559 316,442
Liabilities
Non current Borrowings 10,705 29,125
Current Borrowings 59,155 37,287
Trade payables 18,528 27,256
Other financial liabilities 8,840 5,194
Other current liabilities & Provisons 45,460 37,107
Total (B) 142,688 135,969
Net Assets/Liabilities directly associated with discontinue operations (A-B) 116,871 180,473
Statement of profit and loss of the discontinued operations:

Particulars Year ended Year ended

31.03.2017 31.03.2016
Revenue from operations 11,016 48,628
Other income 30 60
Less: Expenses 36,454 81,620
Profit/ (loss) before tax from a discontinue operations (25,408) (32,932)
Tax expense: 17,288 94
(42,696) (33,026)
Net cash flows attributable to the operating, investing and financing activities of discontinued operations:

cash flow from 31st March 2017 31st March 2016

Operating activities (290) (30,026)
Investing activities 22,313 (4,042)
Financing activities (2,308) (25,389)
52 Previous Year Figures have been regrouped/reclassified wherever necessary to correspond with the current year's classification/
disclosure.

As per our report of even date attached For Ballarpur Industries Limited
asHWin ManKesHWar r. r. VederaH
Partner Vice Chairman
Membership No. 046219
B. HariHaran
For and on behalf of
Group Director (Finance)
K. K. ManKesHWar & Co.
Chartered Accountants BiMaL KHandeLWaL
FRN: 106009W Chief Financial Officer

New Delhi, dated the aKHiL MaHaJan

23rd May, 2017 Company Secretary

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ANNUAL REPORT 2016-17
Notes