Emami Paper Mills Ltd. - Quarterly/Annual Result Disclosures and Notes dated 31 Dec 2018

Auditor and Management Disclosures and Notes for the quarterly results dated 31 Dec 2018

1. The above unaudited financial results of the company have been reviewed by the Audit Committee and approved by the Board of Directors at their respective meeting held on 5th day of February, 2019. The Statutory Auditor of the company has conducted a limited review of the above unaudited financial results for the quarter ended 31st December, 2018.

2. The Company adopted Indian Accounting Standards ("Ind AS") prescribed under section 133 of the Companies Act, 2013 read with the relevant Rules issued thereunder from1st April, 2017 and accordingly these unaudited financial results have been prepared in accordance with the recognition and measurement principles laid down in Ind AS 34 “Interim Financial Reporting” and the other accounting principles generally accepted in India.

3. Post the applicability of Goods and Service Tax (GST) w.e.f July 1, 2017, Revenue from operations are required to be disclosed net of GST in accordance with the requirements of Ind AS. Accordingly, the Revenue from operations for this nine month end is not comparable with that of corresponding nine month end and previous year end presented in the financial results which is reported inclusive of Excise duty.

4. Considering exceptional volatility in foreign exchange fluctuation during the nine months ended 31st December, 2018, the Company has not recognized notional foreign exchange fluctuations loss of Rs.10.22 crores arisen on conversion of foreign exchange borrowings outstanding as on 31st December, 2018. Although this is a departure from Ind AS-21, the management feels that as permissible under Para-19 of Ind AS-1, the above non-recognition is justified to present a true and fair view of the financial performance and cash flow. The company enjoys natural hedge with respect to foreign exchange losses, since the domestic sales price of newsprint is directly linked with USD price of imported newsprint. Hence, the notional foreign exchange fluctuations will be accounted for at the end of the year.

5. The company has only one reportable business segment in which it operates i.e. paper and paperboard including newsprint.

6. Comparative figures of the previous period have been regrouped/rearranged wherever necessary.