A. Significant Accounting Policies
i. Company Overview and Significant Accounting Policies:
a. Company Overview
Ganga Papers India Limited (hereinafter referred to as 'the Company'), a public limited company is engaged
primarily in the business of manufacturing of Kraft paper & Newsprint and pulp & paper products. The
Company has its registered office at Gat No. 241, Village Bebedohal, Tal. Maval, Pune, Maharashtra, India. The
company is listed at BSE.
b. Basis of Preparation and Presentation of Financial Statements
i. The financial statements of Ganga Papers India Limited ('the Company') have been prepared and presented
under the historical cost convention on the accrual basis of accounting, unless stated otherwise and comply in
all material aspects with the Indian Accounting Standards ('Ind AS') including the rules notified under the
relevant provisions of the Companies Act, 2013.
ii. Company's financial statements are presented in Indian Rupees, which is also its functional currency.
c. Use of Estimates
The preparation of Financial Statements in conformity with Ind AS requires the Management to make
estimates, judgments and assumptions that affect the application of accounting policies and the reported
amount of assets and liabilities, the disclosure of contingent assets and liabilities as at the date of the Financial
Statements and the reported amount of revenues and expenses during the reporting year. Accounting estimates
could change from period to period. Actual results could differ from those estimated. Appropriate changes in
estimates are made as the Management becomes aware of the changes in circumstances surrounding the
estimates. Changes in estimates are reflected in the financial statements in the period in which changes are
made and if material, their effects are disclosed in the notes to the financial statements.
d. Property, Plant & Equipment
i. Property, plant and equipment are stated at cost, net of recoverable taxes, trade discount and rebates less
accumulated depreciation and impairment losses, if any. Such cost includes purchase price, borrowing cost and
any cost directly attributable to bringing the assets to its working condition for its intended use, net charges on
foreign exchange contracts and adjustments arising from exchange rate variations attributable to the assets.
ii. 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 entity and the
cost can be measured reliably.
iii. Property, Plant and Equipment which are significant to the total cost of that item of Property, Plant and
Equipment and having different useful life are accounted separately.
iv. Expenses incurred relating to project, net of income earned during the project development stage prior to its
intended use, are considered as pre-operative expenses and disclosed under Capital Work-in-Progress
v. Depreciation on Property, Plant & Equipment is provided to the extent of depreciable amount on the Straight¬
Line Method (SLM). Depreciation is provided based on useful life of the assets as prescribed in Schedule II to
the Companies Act, 2013.
vi. In respect of additions or extensions forming an integral part of existing assets, depreciation is provided as
aforesaid over the residual life of the respective assets.
e. Inventories
Inventory of finished goods are value at net realizable value after providing for obsolescence, if any. Cost of
inventory comprises of all costs of purchase, cost of conversion and other costs incurred in bringing them to
their respective present location and condition. Net realizable value is estimated selling price in the ordinary
course of business, less estimated cost of completion and estimated cost necessary to make the same. Cost of
inventories of raw material, stores & spares and fuel are determined at cost.
f. Impairment of non-financial assets - property, plant and equipment and intangible assets
i. The Company assesses at each reporting date as to whether there is any indication that any property, plant and
equipment and intangible assets or group of assets, called cash generating units (CGU) may be impaired. If any
such indication exists the recoverable amount of an asset or CGU is estimated to determine the extent of
impairment, if any. When it is not possible to estimate the recoverable amount of an individual asset, the
Company estimates the recoverable amount of the CGU to which the asset belongs.
ii. An impairment loss is recognised in the Statement of Profit and Loss to the extent, asset's carrying amount
exceeds its recoverable amount. The recoverable amount is higher of an asset's fair value less cost of disposal
and value in use. Value in use is based on the estimated future cash flows, discounted to their present value
using pre-tax discount rate that reflects current market assessments of the time value of money and risk
specific to the assets.
iii. The impairment loss recognised in prior accounting period is reversed if there has been a change in the
estimate of recoverable amount.
g. Finance Costs
i. Borrowing costs include exchange differences arising from foreign currency borrowings to the extent they are
regarded as an adjustment to the interest cost. Borrowing costs that are directly attributable to the acquisition
or construction of qualifying assets are capitalised as part of the cost of such assets. A qualifying asset is one
that necessarily takes substantial period of time to get ready for its intended use.
ii. Interest income earned on the temporary investment of specific borrowings pending their expenditure on
qualifying assets is deducted from the borrowing costs eligible for capitalisation.
iii. All other borrowing costs are charged to the Statement of Profit and Loss for the period for which they are
incurred.
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