Annual Report201617 PDF

Emami Paper Mills Limited
Annual Report 2016-17

Between
the Covers
Corporate Informa on 1
About Emami paper 2
Journey of Emami Paper 4
Highlights 2016-17 5
Our Key Recogni ons 6
Pu ng Humanity First 7
Board of Directors 8
Management Team 10
Management Discussion and Analysis 12
Directors’ Report 16
Annexures to the Directors’ Report 22
Report on Corporate Governance 42
Independent Auditors’ Report 60

Balance Sheet 66
Statement of Profit & Loss 67
Cash Flow Statement 68
Notes to Financial Statements 70
Cover Photo : Overview of Mul layer Coated Board Plant

Corporate Information
BOARD OF DIRECTORS BANKERS
Mr. A. V. Agarwal, Execu ve Chairman State Bank of India
Mr. Manish Goenka, Whole Time Director ICICI Bank Limited
Mr. P. S. Patwari, Execu ve Director DBS Bank Limited
Mr. M. B. S. Nair, Director - Opera ons Yes Bank Limited
Mr. J. N. Godbole, Independent Director IDBI Bank Limited
Mr. H. M. Marda, Independent Director Axis Bank
Mr. J. K. Khetawat, Independent Director HDFC Bank
Mr. S. Balasubramanian, Independent Director Allahabad Bank
Mr. U. G. Bhat, Independent Director Export Import Bank of India
Mrs. Richa Agarwal, Director RBL Bank Limited
DCB Bank Limited
SENIOR PRESIDENT
IDFC Bank Limited
Mr. S. K. Jain
WORKS
PRESIDENT (FINANCE) & CFO
Balgopalpur,
Mr. S. K. Khetan
Balasore - 756020 (Odisha)
VICE PRESIDENT (FINANCE) AND SECRETARY
R. N. Tagore Road, Dakshineswar
Mr. G. Saraf
Kolkata - 700035
AUDITORS (West Bengal)
M/s S. K. Agrawal & Co.
REGISTERED OFFICE
Chartered Accountants
Unit No. 1, 15th Floor, ACROPOLIS
Suite Nos. 606-608, The Chambers
1858/1, Rajdanga Main Road
(Opposite Gitanjali Stadium)
Kasba, Kolkata - 700107
1865, Rajdanga Main Road
Phone : +91-33-6627 1301
Kolkata - 700 107
Fax : +91-33-6627 1338
UNIT AUDITORS Email: emamipaper@emamipaper.in/
M/s Salarpuria Jajodia & Co. gsaraf@emamipaper.in
Chartered Accountants Website: www.emamipaper.in
7, C. R. Avenue
Kolkata - 700 072
Emami Paper – a true
story of industry
leadership and forward
vision.
OUR DESTINATION
We aspire to maintain a leading posi on in virgin grade paperboard segment
with increase in capacity up to 1,000 TPD.
We aim to become one of the major players in virgin grade wri ng & prin ng
paper segment; focusing to manufacture copier and maplitho paper to the
tune of 500 TPD.
We strive to be known widely for our governance prac ces and financial
success.
We endeavour to become a premier place to work, where our employees
can construct dis nc ve careers.
OUR CALLING CARD

Our Company was incorporated in 1981. It is a part of Shri R S Agarwal and
Shri R S Goenka - led Emami Group with interests in FMCG, edible oil,
cement, wri ng instruments, healthcare, retail and pharmacy stores and
real estate.
The Company is an a rac ve symbol for the significant growth emerging
from India's wri ng and prin ng, packaging and newsprint sector.
The Company's newly setup mul layer coated board mill caters to India's
growing FMCG, pharmaceu cal, healthcare, consumer durables and food
based industries packaging requirements besides the remarkable presence
in the cultural segment.
2
OUR LOCATIONAL SPREAD
We are one of the largest paper manufacturers in India. Head-
quartered at Kolkata, we have 2 (Two) manufacturing facili es -
Balasore (Odisha) and Kolkata (West Bengal) and 3 (Three) regional
offices – Delhi, Mumbai and Hyderabad. Our dealers network is spread
on PAN INDIA basis.
Our plant opera onal facili es includes: Mul -layer coated high end
paperboard with 1,80,000 TPA capacity, Newsprint with 95,000 TPA
capacity, Wri ng & Prin ng (W&P) Paper with 60,000 TPA capacity and
Cap ve Power genera on of 33.5 MW.
OUR CLIENTELE
Paper Board: All major mul -na onal companies and Indian
conglomerates.
Newsprint: The Economic Times, The Times of India, Hindustan Times,
Anandabazar Patrika, The Telegraph, The Hindu, Dainik Bhaskar, Dainik
Jagran, etc.
ACCREDITATIONS
Integrated management system (IMS) as cer fied by DNV, Netherlands
n ISO 9001:2015 - Quality Management System.
n ISO 14001:2015 - Environment Management System.
n OHSAS 18001:2007 - Occupa onal Health & Safety Management
System.
n Prac cing TPM with an objec ve to achieve zero defect, zero
breakdown, zero pollu on and zero loss.
n Credit ra ng of A1+ for short term & A for long term from CARE.
3
Journey of Emami paper
2017
Capacity of Board Plant increased to 180,000 TPA,
PM-II Newsprint machine is being converted into
wri ng & prin ng grade & 15MW Power Plant
upgraded to 18MW
2015
Paper Board Plant of 132,000 TPA with 10.5 MW power plant commissioned
2010
Listed on BSE
2008
One of the Largest Manufacturer of Newsprint & Market Leader in the Country
2007
Commissioning of Power Plant-15MW, DIP-300TPD,
Paper Machine-III-250TPD
2005
Expansion of capaci es to 135 TPD at Balasore
2001
5 MW Power Plant commissioned
2000
Merged with Gulmohar Paper Mill, Kolkata
1998
Capacity increased to
100TPD with successful
commissioning of PM#2
1983
Ini al Commissioning
with 15 TPD capacity at
Balasore facility
4
Highlights - 2016-17
IN FINANCIAL TERMS
n Opera onal Income grew by 111% from a mere ` 538.80 crores in
2015-16 to a whopping ` 1,138.35 crores in 2016-17.
n Profit before Tax increased by 205% from ` 10.81 crores in 2015-16
to ` 32.99 crores in 2016-17.
n Cash Profits jumped by 134% from ` 37.49 crores in 2015-16 to
` 87.84 crores in 2016-17.
n Dividend doubled to 60% on Equity Shares and 8% on Preference
Shares.
ON THE SHOP FLOOR
n With 100% capacity u liza on, combined produc on stood at
2,78,489 MT during the year 2016-17.
n Over 100% capacity u liza on, the board plant achieved 1,36,691
MT produc on thereby contribu ng to 55% of the overall sales.
n Quality of finished paper & paperboard improved significantly
through con nuous online monitoring and automa on.
n Installa on of SAP ECC6 – EPH7 HANA CLOUD for con nuous
monitoring of real me data.
n Strong employee support and not a single hour interrup on in
produc on.
5
Our Key Recognitions
Our main objec ve is to be recognised as “quality enablers”. We always remain focused to
deliver the highest quality of products at minimum cost. Our quality implementa on efforts are
all pervasive, beginning with a stated goal – customer sa sfac on and con nuous quality
improvement through the engagement of every associate.
The guidelines and protocols laid down by our management ensure that every batch of the
products delivered by us is of right quality. Over the years, these ini a ves have earned as
several laurels and accolades.
ACCOLADES
1 US FDA & FSC Cer fica on for MaxoFold (Folding Box Board), GlamKot (Coated Bleached
Board) and Eco Strong Virgin (Top Coated Grey Back Board).
2 Best CSR Ac vi es award at Balasore Mahotsav, Pallishree Mela & EXPO Odisha, 2016.
3 Greentech Environmental Award, 2014 (GOLD CATEGORY).
4 Greentech CSR Award, 2014 (GOLD CATEGORY).
6
Putting
Humanity First
At Emami paper, we are fully commi ed EMAMI PAPER MILLS LIMITED
towards our responsibili es and contribu on
in an effec ve manner to facilitate value- CSR GOALS
crea on in various programmes of
community developments.
Infrastructural development at Remuna college and local schools
Balvikash Kendra Organising mass marriage
Exercise notebook distribu on in local schools Health Check-up Camp
7
Board of
Our Founders
Mr. A. V. Agarwal
Execu ve Chairman
Well known Industrialist.
Rich and varied experience
of 19 years in Marke ng,
Corporate Planning, Business
Development, Strategy
Formula on and Overall
Management.
Shri R S Goenka (Standing)

Shri R S Agarwal (Si ng)
Mr. Manish Goenka
Whole- me Director
Industrialist with extensive
business experience of 19
years, exper se in Marke ng,
Corporate Planning, Business
Development, Strategy
Formula on and Overall
Management.
8
Directors
Mr. P. S. Patwari Mr. J. Godbole Mr. S. Balasubramanian Mr. U. G. Bhat

Execu ve Director and CEO Independent Director Independent Director Independent Director
Chartered Accountant, Former Chairman of IDBI, Former Chairman of Well known Technocrat
extensive experience of 37 having extensive Company Law Board, has and reputed project
years in the area of experience in the area of rich and varied experience consultant in paper
Corporate Planning, Finance, in par cular Bank in the Corporate Law. He is industry with rich and
Business Development, Finance, Corporate a well known personality varied experience in
Strategy Formula on and Planning and Strategy for his valuable se ng up of project.
Overall Management. formula on. contribu on to the
Corporate world. He was
also former member of
Indian Postal Service and
having senior level
experience in public
sector.
Mr. J. K. Khetawat Mr. H. M. Marda Mrs. Richa Agarwal

Mr. M. B. S. Nair
Independent Director Independent Director Director (Opera ons) Director
An Industrialist with An Industrialist with Renowned paper Extensive experience in
extensive business extensive business technologist with rich and the area of Corporate
experience in the area of experience over 3 decades. varied experience of 43 Planning, Business
Corporate Planning, Rich and varied experience in years in Paper Industry. He is Development, Marke ng
Strategy Formula on and the area of Corporate opera onal head of both and Overall Business
Overall Management. Planning, Strategy the units at Balasore and Management.
Formula on and Overall Kolkata. Having varied
Management. experience in se ng up of
paper mill project.
9
Management Team
Mr. S. K. Jain Mr. S. K. Khetan Mr. G. Saraf Mr. B. Choudhury

Sr. President President (Finance) & CFO Vice President (Finance) Vice President (Engineering)
& Secretary
Mr. H. K. Mohanty Mr. Soumyajit Mukherjee Mr. A. K. Singh Mr. Mukesh Agarwal
Asst. Vice President A.V.P. (Marke ng & Sales) A.V.P. (Board Produc on) Sr. G.M. (Finance)
(Kolkata Works)
Mr. S. Chakraborty Mr. Anil Khemka Mr. Kajol Roy Choudhury Mr. R. Mi al
Sr. G.M. (Automa on) Sr. G.M. (Purchase) Sr. G.M. (Works) Sr. G.M. (Civil)
Mr. Ranjan Kumar Jena Mr. Shyam Patwari Mr. G. Mishra Mr. M. S. Yadav
G.M. (HR & IR) G.M. (Commercial) G.M. (Project & Maint)(l) G.M. (Elect)
10
Mr. B V K S S Prasad Mr. Sandeep Jha Mr. Chandan Mukherjee Mr. Pramod Jain
G.M. (Power Plant) G.M. (Marke ng) G.M. (Import & Insurance) G.M. (Board Plant)
Mr. S. K. Brahma Mr. Nirakar Panda Mr. Ganesh Pujari Mr. Chintamani Samal
Sr. D.G.M. (Paper) D.G.M. (Power Plant) D.G.M. (Q.A.) D.G.M. (Automa on)
Mr. Mukesh Agarwal Mr. D. Hota Mr. K. S. V. Ravi Kumar Mr. N. C. Pa naik
D.G.M. (IT) D.G.M. (HR) D.G.M. (Elect) D.G.M. (Admin &
Co-Ordina on)
Mr. Ramesh Khun a

D.G.M. (DIP)
11
Management Discussion and Analysis
GLOBAL SCENARIO INDIAN PAPER INDUSTRY
Paper is one of the core industries and is linked to The paper industry plays crucial role for the country’s
the basic human needs. Paper is the pre-requisite social strength, as use of paper is supposed to be an
for educa on and literacy and its use is an index of index of cultural growth. The Indian paper industry
advancement in these two fields as well as the overall accounts for about 3% of the world’s produc on of
well being of the society. paper. Despite the con nued focus on digitalisa on,
India’s demand for paper is expected to rise 53% in the
The global paper industry experienced stable growth
next six years, primarily due to a sustained increase
during the last five years and is expected to con nue
in the number of school-going children in rural areas.
its growth momentum, reaching approximately US
Growing consumerism, modern retailing, rising literacy
$256 billion in 2017 with a CAGR of 3%. The industry
(con nued government spending on educa on through
has been benefited from significant growth in paper
the Sarva Shiksha Abhiyan) and the increasing use of
and pulp output across developing economies,
documenta on will keep demand for wri ng and prin ng
recovering aggregate consump on and rising demand
paper buoyant. Though India’s per capita consump on
for paperboard packaging products. Over the next five
is quite low compared to global peers, things are looking
years, revenue growth is an cipated to remain strong
up and demand is set to rise from the current 13 million
for the industry. Economic growth in the BRICS na ons
ton to an es mated 20 million ton by 2023.
(Brazil, Russia, India, China and South Africa) will drive
the industry’s steady growth. An India Ra ngs report es mates India’s per capita
paper consump on at 9 Kg against 22 kg in Indonesia,
The largest consumers are the USA, Canada, many
25 kg in Malaysia and 42 kg in China. The global average
Western European countries and Japan, with
stands at 60 kg. This indicates there is a lot of headroom
consump ons well in excess of 200 kg per person,
for growth in India. From a demand point of view, every
compared with the global average of 60 kg per person.
one kg incremental per capita consump on results in
Paper and paperboard produc on has been expanding
addi onal demand of more than 1 million ton a year.
rapidly world-wide for over half a century and is
The government’s sustained focus on literacy and
expected to reach at a record level of 490 million tons
expansion in organized retail are expected to posi vely
by the end of 2020. According to recent paper demand
affect paper consump on and demand in India. The
study by global consul ng group POYRY the demand is
paper industry has, thus, a cataly c role to play not only
expected to increase along with global economy, which
for the overall growth of the industry but also for the
is expected to grow at a pace of 3.0% per annum. Paper
living standards of the people.
is now one of the most globalized commodi es in the
world, with high volumes
of produc on exported
and imported. Global paper
consump on is at a record
high level and it will con nue
to grow. The global paper
industry has witnessed
single digit growth in past
few years with major
growth impetus coming
from emerging economies
such as India and China.
Asian markets are becoming
large consump on centres
on account of their high
consump on base with low
penetra on.
12
Management Discussion and Analysis (Contd.)
NEWSPRINT SECTOR: and developing @11% per annum and becoming a
preferred hub for packaging industry. Currently the
India’s Rs.30,000 crores ($4.48 billion) print media
industry is set to grow by 8% annually for the next three 5th largest sector of India’s economy, the industry has
years. The growth driver, though, isn’t English language reported steady growth over past several years and
dailies. It is regional media. Vernacular or local language shows high poten al for much expansion, par cularly
print media will grow at 10-12% in fiscal 2017. Only in the export market. Over the last few years Packaging
10% of the 1.2 billion Indians speak English. That leaves Industry is an important sector driving technology and
an overwhelming majority to rely on regional media. innova on growth in the country. The global packaging
So there is s ll a huge untapped market. Addi onally, industry is developing and expanding day by day and
literacy rates in the country’s villages are improving. The Indian packaging industry is also growing at rapidly.
figure for rural areas jumped from about 45% in 1991 This growth is primarily driven by factors like growing
to 69% in 2011, according to the latest Census of India. pharmaceu cal, food processing, manufacturing
industry. FMCG, healthcare sector and ancillary in the
A total of 5,423 new publica ons were registered
during the year, taking the total count of registered emerging economies like China, India, Brazil, Russia and
publica ons to 110,851 from 105,443 in the previous few other East European countries.
year, according to a report, “Press in India 2015-16”, Domes c packaging board markets of various grades
prepared by the Registrar of Newspapers of India (RNI). are exhibited in the Pie Chart below:
The rapid expansion of the Internet was accompanied
by a newspaper revolu on. Growth in technology and Domes c Packaging Board Market
(Qty. in M.T.)
the impor ng of new prin ng equipment meant that it Coated Grey Back
Virgin
was becoming commercially viable for newspapers to Grade, 800,000 A, 130,000
Emami Paper Mills Ltd.

be printed in a variety of regional languages rather than
predominantly either in Hindi or English. Increasing Coated Grey Back
B+, 800,000
literacy rates across India has driven the localiza on of Uncoated Grey
newspapers, made possible by the changes in prin ng Back, 120,000
technology. White Back
B, 150,000 Coated Grey Back
Underwri ng the localiza on of India’s newspapers White Back B+, 750,000
is media adver sing, which has grown alongside B+, 250,000
newspaper circula ons. The growth of media Coated Grey Back A Coated Grey Back B+ Coated Grey Back B+
adver sing meant that Indian newspapers began to White Back B+ White Back B Uncoated Grey Back
receive investment and this made the decentraliza on

of news possible. Incen ves are o en offered in order EMAMI’S INDUSTRY PRESENCE
Statutory Report
to increase circula on. Emami Paper Mills Limited, part of the Emami Group of
However, the lower growth in GDP and decrease in Industries has paper mills located at Balasore (Odisha)
the number of pages per newspaper due to lower and Dakshineswar (W.B.,Kolkata), is one of the most
adver sing spend, has resulted in a sharp decline for environment friendly paper mills in Eastern India. We
the demand of newsprint. The used newspaper being manufacture interna onally benchmarked newsprint
the main raw material for newsprint has a cascading with the largest market share in India. The company also
impact on its availability and consequently the price of manufactures white creamwove, ledger and maplitho
waste paper has started moving upwards. The impact
paper. Your company has gained a pres gious posi on
was more severe on newsprint industry due to lower
in the market of Mul -Layer Coated Packaging Board
sales realiza on on account of cheaper imports coupled
Financial Report
with rupee apprecia on. The newsprint industry is also products with focus on high-end segment of virgin fibre
expected to witness a decline in demand in long-term board with its brands “Emami Maxo Fold” & “Emami
primarily on account of increasing adop on of digital Glamkot” and also developed “Emami Eco Strong” for
media and prolifera on of smartphone usage. recycled board and established itself as a preferred
quality manufacturer in the country catering wide range
PACKAGING BOARD SECTOR:
of customer needs.
Packaging is among the high growth industries in India
13
STRENGTH AND OPPORTUNITIES
z Strategic loca on – proximity to raw materials and nearness to the market.
z Large and growing domes c paper market and poten al for export for its products
z Pan India presence
z Close proximity to Mahanadi Coal (MCL) fields for Balasore plant and Raniganj-Asansol (ECL) belt for Kolkata
unit for procurement of coal and also proximity to Haldia port for import of pulp, waste paper, chemicals,
spares & machineries.
z Availability of qualified technical personnel to ensure produc on of world class quality products.
z Strong customer base and dealers/distributors network.
z Governments thrust for improving educa on and literacy in the country.
z Sufficient land and other infrastructure available with the Company for future expansion and growth.
z Well established Research and Development (R&D) facili es/ac vi es encouraging innova on, product
development and cost saving plan.
z Steady increase in disposable income, preference to branded products by consumers and healthy growth in
organized sector with an cipated robust demand for paper and paperboard.
z Lowest cost manufacturer with advanced technology for manufacturing of wri ng & prin ng, newsprint and
Mul layer Coated Board with self-sufficient cap ve power plants.
THREATS
z Increasing coal and logis c cost
z Numerous Regional Trade scheme (RTs)/Free Trade Agreement (FTAs) without adequate safeguard to the
domes c industries.
z Cheap dumping of newsprint from abroad.
z Increasing compe on from electronic media and digitaliza on.
z Small and unorganized industry players
IT SUPPORT an internal control and checking system for security of
To use informa on technology (IT) extensively in its its IT assets, which efficaciously operates to protect IT
opera ons and to achieve greater produc vity and assets. Your Company has successfully migrated its total
efficiency, the Company has deployed a customized IT support system in SAP ECC6 – EPH7 HANA CLOUD
SAP solu on for its various spheres of diverse ac vi es. during the year.
SAP supports the Company’s complex business process RISK AND CONCERNS
and strengthens internal financial control policy and Your Company iden fied various risks and implemented
procedures adopted by the company. its Mi ga on Plans. Risk Policy and monitored frame
Enterprise wide IT and ERP infrastructure is monitored works has been approved by the Audit Commi ee and
and supported by a dedicated in-house IT team in the Board of Directors of the Company. Risk repor ng
areas such as SAP support, Data Centre Management, and monitoring is being conducted regularly by
Networking, So ware development and systems Governance Risk and Compliance Commi ee (GRCC)
administra on, Hardware Capacity Planning ac vi es at all the opera on levels and repor ng directly to the
etc. SAP supports the Company’s complex business Audit Commi ee and the Board on half-yearly basis.
process and strengthens internal financial control policy HUMAN RESOURCES AND TRADE RELATIONS
and procedures adopted by the company. Firewalls,
Your Company considers people as its biggest asset
an -virus and end-point security measures adopted by
and takes con nuous efforts to improve the working
the company to enforce strict security prac ces in all
environment with focus on employees’ well-being and
nodes to mi gate network security risks and to protect
capability-building to enable them to perform at their
company’s data and other IT resources from all external
best for the Company. Your Company has qualified and
threats and vulnerabili es. The company has developed
14
talented human resources at all levels of opera ons. INTERNAL CONTROL SYSTEM
People are our real strength and as such the Company Your Company has an adequate and effec ve Internal
is significantly increasing its investment in its employees Control Mechanism in place to ensure efficient conduct
with training and development in order to align of its opera ons, security of assets, preven on and
employees with requirement of safety, customer support, detec on of frauds/errors, accuracy and completeness
market needs, opera onal excellence, technology of accoun ng records and the mely prepara on of
upgrada on, process improvements, innova on and reliable financial informa on as per its Management
behavioral competencies. With regular communica on Informa on System (MIS).
and consistent efforts by the management, it is ensured
Your Company has well planned procedures for ensuring
that the employees are aligned at common objec ves
Internal Financial Controls and has also appointed
and have the right opinion on business evolu on. Your
external & independent Audit Firms as its Internal
Company strongly believes in fostering a culture of trust
Auditor for periodical checking and monitoring the
and mutual respect amongst all its employees and seeks
Internal Control Measures for both its plants at Balasore
to ensure that Emami Paper Mills Limited (EPM) values
and Kolkata as well as at the business and corporate
and principles are understood by all. The Company has
levels at Head Office.
a Policy on Prohibi on, Preven on and Redressal of
Sexual Harassment of Women at Workplace and ma ers Internal Auditors are present at the Audit Commi ee
connected therewith or incidental thereto covering Mee ngs where Internal Audit Reports are discussed
all the aspects as contained under the “The Sexual alongside of management comments and the findings
Harassment of Women at Workplace (Prohibi on and and observa on of the Internal Auditors. The Terms of
Redressal) Act, 2013”. Reference of the Audit Commi ee inter alia includes
reviewing the adequacy of the internal control
SAFETY
environment, monitoring implementa on of the

Your Company has adopted an Integrated Policy which ac on plans emerging out of Internal Audit findings
clearly defined Occupa onal Health, Safety and Working including those rela ng to strengthening Company’s
Environment. Suitable Personal Protec ve Equipment Risk Management Systems and discharge of statutory
(PPE) is provided to all the concerned employees mandates.
and efforts are being taken to educate and mo vate
Your Company has a Comprehensive Budgetary Control
the employees as well as communicate to interested
System in opera on and its’ Key Performance Indicators
par es to foster team spirit and contribute towards
(KPI) are set for all important opera onal parameters.
implementa on of Safety Policy of the Company.
These are monitored and reviewed regularly by the
Periodical Training Programms are conducted on
management in Management Commi ee Mee ngs,
handling hazardous chemicals, Material handling, Usage
which is chaired by the Execu ve Director of the
of PPEs, firefigh ng etc. to improve safety awareness
Company and par cipated by all departmental heads
among the employees and contract workmen. Mill side
Statutory Report
and necessary correc ve and preven ve ac ons are
Safety Audit, HAZOP study and Risk Analysis are carried
being ini ated.
out periodically through experts for industrial safety
and their recommenda ons are implemented. Material CAUTIONARY STATEMENT
Safety Data Sheets (MSDS) are displayed at all the Statements in the Management Discussion and Analysis
hazardous chemical storage areas. Tes ng of Pressure describing the Company’s objec ves, projec ons,
Vessels, Li ing tackles, Safety belts, Conveyor Systems, es mates, expecta ons or predic ons may be forward-
Building Stability, Chemical stored FRP tanks etc., are looking statements’ within the meaning of applicable
carried out through competent persons. An updated securi es, laws and regula ons. Actual results could
Onsite Emergency Plan (OEP) and Off-site Emergency differ materially from those expressed or implied.
Plan are available to properly address emergencies. The important factors that could make a difference to
Financial Report
Periodic mock drills on hazardous chemical leakages and the Company’s opera ons include global and Indian
fire incident are conducted to ensure the effec veness demand and supply condi ons, finished goods prices,
of emergency preparedness. The en re mill is covered raw material availability and prices, cyclical demand,
with fire hydrant points with pressurized water mains changes in government regula ons, environmental
firefigh ng. Also fire ex nguishers are provided to laws, tax regimes, economic developments within India
strategic points. In addi on, one mobile fire tender is and the world, as well as other factors such as li ga on
available to tackle any emergency. Since incep on, EPM and industrial rela ons.
has maintained excellent safety record.
15
Directors' Report
Dear Shareholders
Your Directors take pleasure in presen ng their Thirty Fi h Annual Report together with the Audited Statement of
Accounts for the year ended March 31, 2017.
FINANCIAL SUMMARY (` in Lacs)
Par culars 2016-17 2015-16
Opera onal Income 113835.48 53880.49
Profit before interest and deprecia on 14485.35 5363.11
Less: Interest 5701.73 1613.78
Profit Before Deprecia on & Tax 8783.62 3749.33
Deprecia on 5484.67 2668.05
Profit Before Taxa on 3298.95 1081.28
Less : Provision for Current taxa on (MAT) 695.40
MAT Credit en tlement (695.40)
Income Tax for earlier year -
Provision for deferred tax 705.44 705.44 (1710.63)
Profit a er Tax 2593.51 2791.91
Add : Surplus brought forward 3351.51 1586.25
Balance available for appropria on 5945.02 4378.16
Appropria ons
Proposed Dividend on Equity Shares* - 363.00
Proposed Dividend on Preference Shares* - 490.00
Tax on Dividend* - 173.65
Transfer to General Reserve - -
Balance carried forward 5945.02 3351.51
5945.02 4378.16
*Your Company has not accounted for proposed dividend as a liability as at March 31, 2017 as per revised Accoun ng Standard
(AS) 4 ‘Con ngencies and Events occurring a er the Balance Sheet date’.
Proposed Dividend was however accounted for as a liability as at March 31, 2016 in line with the exis ng Accoun ng Standard
applicable at that me.
PERFORMANCE HIGHLIGHT also con nued to enjoy dominant posi on being one
of the preferred suppliers of Newsprint in India being
This year has been very encouraging for your Company
world class quality manufacturer of Newsprint.
con nuing to report impressive topline growth. Your
Company delivered record earnings during the year and OPERATIONS AND OUTLOOK
achieved its highest ever revenue of Rs. 1138.35 Crores The year witnessed remarkable performance with
as compared to `538.80 crores in 2015-16 registering all-round growth coming from the newly setup Mul -
a jump of 111%. Earnings before Interest and Tax Layer Coated Board plant. The newly commissioned
(EBIDTA) increased by 170% to `144.85 crores as against plant is designed to produce 132,000 TPA of high grade
` 53.63 crores in 2015-16. During the year under review, paperboard which finds its usage in pharmaceu cal,
the combined produc on from newsprint, wri ng & healthcare, food, cosme cs and other consumer
prin ng paper and packaging board stood at 2,78,489 product industries in various sizes and gsms ranging
MT and the capacity u lisa on stood at 100%. Your from 170-450. The board plant has recorded 136691
Company was able to capitalize on the market condi ons MT of produc on thereby contribu ng 55% to overall
through its opera onal excellence and higher efficiency. sales and has achieved over 100% of capacity u lisa on
Your Company has gained pres gious posi on in the in the very first year of its commercial produc on.
high end packaging product segment through its newly The demand for Value Added Paperboards (VAP) is
installed ‘Mul -Layer Coated Board’ plant. Your Company expected to grow at a CAGR of around 11-12% during
16
Directors' Report (Contd.)
the next 5 years. The faster rate of growth in VAP is and industry challenges. With the long awaited strategic
expected to be driven by the increased demand for and economical reforms on the anvil the paper industry
branded packaged products; growth in organised is poised to grow further. Emami Paper being a catalyst
retail; increasing awareness on food safety & hygienic and pioneer in the paper industry is a rac vely
packaging and use of packaging as a key differen ator posi oned to take benefit of this growing opportunity
specially in the FMCG sector, food, pharmaceu cal, and looks to the future with op mism and confidence.
garments and beverages.
DIVIDEND
Despite heightened compe ve intensity, your
Your Directors are pleased to recommend dividend of
Company established its leading posi on in the VAP
60% (` 1.20 per share) on Equity shares to ` 2/- each
segment during the year. This was achieved through
and 8% p.a. dividend on Preference shares of ` 100/-
focus on product quality, process innova on, improved
each for the financial year ended 31st March, 2017. The
manufacturing efficiencies and enhanced service
Dividend, if approved by the shareholders, will absorb
delivery level with be er logis c arrangements.
` 1,463.55 Lacs (Including the dividend tax of ` 247.55
The year 2016-17 was very challenging for the domes c Lacs).
newsprint industry par cularly during the last two
ENVIRONMENT MANAGEMENT
quarters. The lower growth in GDP and decrease in
the number of pages per newspaper due to lower Your company’s approach towards environmental
adver sing spend, has resulted in a sharp decline for protec on is guided by Environmental Policy,
the demand of newsprint. The used newspaper being commitment towards a sustainable planet and a
the main raw material for newsprint has a cascading clean environment as well as a healthy workplace for
impact on its availability and consequently the price of employees. The Company focuses on environmental
waste paper has started moving upwards. The impact management not only to comply with the applicable

was more severe on newsprint industry due to lower regulatory regime but also strives to contribute
sales realiza on on account of cheaper imports coupled posi vely to the communi es around its opera ons
with rupee apprecia on. The newsprint industry is also through varied community ini a ves, encouraging
expected to witness a decline in demand going forward biodiversity and natural resource conserva on
primarily on account of increasing adop on of digital
To meet its environmental objec ves, the Company
media and prolifera on of smartphone usage.
adopts:
Wri ng & Prin ng segment par cularly branded copier
• Compliance with all relevant legisla ve
paper is expected to grow at a CAGR of 9.7%. Growth
requirements.
in this segment is primarily a ributed to con nued
government support towards increase in literacy rate • Minimum Pollu on Load in terms of Liquid
and corporate spending. Considering the sluggish Discharge and Air Emission.
Statutory Report
newsprint demand and to capitalize the opportunity in • S mulate ra onal use of resources through
wri ng & prin ng segment, your Company has decided behavioural and technological improvements.
to convert its exis ng Paper Machine (PM) 2 towards
• Minimizing waste and maximizing recycling/ reuse.
more demand & profit driven wri ng & prin ng paper.
• Crea ng Human Awareness in Environment, Safety
Despite challenges like erra c demand due to and Health.
demone sa on and compe ve market scenario your
Company has been able to put forth a remarkable • Promo ng comprehensive programs for con nual
performance. During the year, various measures were improvement of Environmental performance.
undertaken by your Company to enhance product • Reduce specific energy consump on and associated
efficiency and reduce costs. To mi gate the risk of
Financial Report
greenhouse gas emission.

increase in the prices of raw material your Company
went ahead to keep sufficient stock of waste paper Your Company has adopted one of the best Integrated
& other raw material and forward booking of raw Management Systems (IMS) cer fied by DNV (Det Norske
materials. Your Directors believe that these ini a ves Veritas AS, the Netherlands) through their rigorous
will be beneficial for the Company in the long-run. surveillance and recer fica on audits, encompassing
the following:
Your Directors believe that the performance of the
Company has been sa sfactory despite varied economic ) ISO 9001:2015 - Quality Management System
17
) ISO 14001:2015 - Environment Management System • Air pollu on control through ESP, Ash conveying
) OHSAS 18001:2007 - Occupa onal Health & Safety system pneuma cally through close pipe line, Dust
Management System. Suppression System, Water Sprinkling System
) Prac cing TPM with an objec ve to achieve zero • Fly ash is used in making fly ash bricks.
defect, zero breakdown, zero pollu on, and zero • Green belt development
loss.
These systems and assets have enabled the Company
At Emami Paper, there has been substan al development to safeguard the environment by mee ng all statutory
in energy conserva on by installing energy efficient norms. As a measure of sustainable growth policy of
equipment. Key environmental control equipments, the company, it con nuously gears up its resources to
mechanism and monitoring instruments maintained by provide be er protec on to environment and natural
the company are as below: resource conserva on.
• Online Ambient air quality monitoring system (3 SHARE CAPITAL
nos)
The company has neither issued shares with differen al
• Online stack emission monitoring system (3 nos) vo ng rights nor granted stock op ons or sweat equity.
• State-of-the-art effluent treatment plant (ETP) TRANSFER OF UNCLAIMED DIVIDEND TO INVESTOR
• Use of ETP final water for agricultural and planta on EDUCATION AND PROTECTION FUND
purpose In terms of sec on 125 of the Companies Act, 2013, the
• 100% sludge used as co-fuel in the power boiler in unclaimed or unpaid Dividend is due for remi ance to
Balasore Plant the Investor Educa on and Protec on Fund established
• Decanter for secondary sludge dewatering by the Central Government in accordance with the
schedule given below:-
• Rainwater harves ng through 17 nos of recharge
well (` in Lacs)
Financial Dividend Last date of Payment Total Amount of Unclaimed Dividend Last date for transfer to
year ID No. of dividend Dividend as on 31.03.2017 I.E.P.F. on
2009-10 28th 28/08/2010 363.00 0.66 02/09/2017
2010-11 29th 09/09/2011 363.00 0.73 14/09/2018
2011-12 30th 11/09/2012 363.00 0.68 16/09/2019
2012-13 31st 11/09/2013 363.00 1.05 16/09/2020
2013-14 32nd 09/09/2014 363.00 0.89 14/09/2021
2014-15 33rd 09/09/2015 363.00 0.98 14/09/2022
2015-16 34th 08/09/2016 363.00 0.99 13/09/2023
Total : 2541.00 5.98
DETAILS OF SUBSIDIARY/ JOINT VENTURES/ ASSOCIATE Technology Absorp on and Foreign Exchange Earnings
COMPANIES and Outgo as required under Sec on 134(3)(m) of
the Companies Act, 2013 read with Rule 8(3) of the
The Company does not have any Subsidiary or Joint
Companies (Accounts) Rules, 2014 is furnished in
Venture/ Associate Companies.
Annexure I and is a ached to this Report.
DETAILS OF DEPOSITS EXTRACT OF ANNUAL RETURN
The Company has neither accepted nor renewed any The extract of Annual Return in form MGT – 9 is given in
deposits under sec on 73 of the Companies Act, 2013 Annexure II to the Report.
during the year under review.
CORPORATE SOCIAL RESPONSIBILITY (CSR) INITIATIVES
CONSERVATION OF ENERGY, TECHNOLOGY
The company has formulated the policy for development
ABSORPTION AND FOREIGN EXCHANGE EARNINGS
and implementa on of Corporate Social Responsibility
AND OUTGO
as also required under Sec on 135 of the Companies
The informa on pertaining to Conserva on of Energy, Act, 2013.
18
Further, the informa on pursuant to Sec on 134(3)(o) informa on. The Audit Commi ee evaluates the internal
of the Companies Act, 2013 and Rule 9 of the Companies financial control system periodically.
(Corporate Social Responsibility) Rules, 2014 are given AUDITORS AND AUDITORS REPORT
in Annexure III outlining the main ini a ves during the
year under review. 1. STATUTORY AUDITORS
GROWTH WITH SOCIAL RESPONSIBILITY: As per sec on 139 and other applicable provisions
of the Companies Act, 2013 the Company has
Emami Paper Mills Limited through its CSR ac vi es appointed M/s. Agrawal Subodh & Co. Chartered
takes up programs that benefit the communi es in & Accountants (Registra on No. 319260E) as the
around its place of work and ensure over a period of Statutory Auditors of the Company, for a period of
me, enhancement in the quality of life & economic five years ll the conclusion of 40th Annual General
well-being of the local people and thereby establishing Mee ng of the Company, subject to ra fica on by
its presence as a good corporate ci zen. the shareholders in every AGM of the company on
EPML is commi ed to help the inhabitants of the the remunera on and other terms and condi ons
surrounding villages by taking part in drinking water as may be fixed by the Board of Directors. The Board
supply schemes, laying and improving roads, culverts, recommends the approval by the shareholders
providing ligh ng facili es, development of parks, regarding the appointment of M/s Agrawal Subodh
supply of equipment and instruments to Fair Price & Co, Chartered Accountants as Statutory Auditors
Shops, improving infrastructure facili es in Government of the Company
Schools, conduc ng medical camps, providing financial The present Statutory Auditors, M/s S. K. Agrawal
assistance to needy people, contribu ng for cultural & Co., Chartered Accountants and M/s Salarpuria
programmes, sports ac vi es, construc on / renova on Jajodia & Co., Chartered Accountants, Unit Auditors
works in the place of worship etc. This has paved the

(Kolkata Unit) will con nue their office ll the
way for establishing a harmonious rela onship with the conclusion of ensuing 35th Annual General Mee ng
surrounding neighborhood. of the Company.
EPML undertakes Community Development ac vi es 2. COST AUDIT
by categorizing the needs of the community under
various heads, viz., Infrastructure and basic ameni es, Your Company has appointed M/s. V. K. Jain & Co.
providing drinking water supply, educa on, medical Cost Accountant as Cost Auditors of the Company
camps and environment, promo on of Oriya literature, for the Financial Year 2016-17 for both the units
Art & Culture, assistance for the differently – abled, at Balasore and Kolkata under sec on 148 of the
training of unemployed youth, Organizing sports and Companies Act, 2013, at the Board Mee ng held on
talent compe ons etc. 24th May, 2016 to audit cost accoun ng records as
may be applicable to the Company for the financial
The company takes pride for its sense of responsibility
Statutory Report
year 2016-17 and their remunera on was approved
towards the community and environment and the at the last Annual General Mee ng.
way it is duty bound for enrichment of the life of less
privileged people and protec on of the environment In terms of Sec on 148 of the Companies Act, 2013
around its area of opera on. The company has taken read with the Companies (Audit & Auditors) Rules,
its social responsibility as a part of its opera ng policy 2014, M/s V.K.Jain & Co. Cost Accountant, have
and gearing its social ac vi es to promote inclusive and been reappointed as Cost Auditor for the year 2017-
sustained growth. 18 as required under the Companies Act, 2013, the
remunera on payable to Cost Auditor is required to
INTERNAL FINANCIAL CONTROLS AND THEIR be placed before the members in General Mee ng
ADEQUACY for their ra fica on. As such, a resolu on seeking
Your Company has laid down internal financial controls members’ ra fica on for the remunera on payable
Financial Report
to be followed by the Company and such policies and to them is included in the No ce convening the
procedures adopted by the Company for ensuring the Annual General Mee ng.
orderly and efficient conduct of its business, including 3. SECRETARIAL AUDIT
adherence to Company’s policies, the safeguarding of
its assets, the preven on and detec on of frauds and Pursuant to the provisions of sec on 204(1) of the
errors, the accuracy and completeness of the accoun ng Companies Act, 2013, read with the Companies
records, and the mey prepara on of reliable financial (Appointment and Remunera on of Managerial
19
Personnel) Rules, 2014 the company has appointed Act, 2013, the company has established a Vigil
M/s MKB & Associates, Company Secretary in mechanism for the directors and employees to report
prac ce for the financial year 2016-17 to undertake genuine concerns, as recommended by the Audit
the Secretarial Audit of the company. The Secretarial Commi ee and approved by the Board of Directors in
Audit Report is annexed herewith as Annexure IV. their mee ng held on 21st January, 2014.
AUDITORS’ REPORT/ SECRETARIAL AUDIT REPORT The Company’s Whistleblower Policy encourages
Directors and employees to bring to the Company’s
The observa ons made in the Auditors’ Report
a en on, instances of unethical behavior, actual or
read together with relevant notes thereon are self-
suspected incidents of fraud or viola on of the Code
explanatory and hence do not call for any further
of Conduct that could adversely impact the Company’s
explana ons or comments by the Board under Sec on
opera ons, business performance and / or reputa on.
134 of the Companies Act, 2013.
The Policy provides that the Company inves gates such
PARTICULARS OF LOANS, GUARANTEES OR incidents, when reported, in an impar al manner and
INVESTMENTS MADE UNDER SECTION 186 OF THE takes appropriate ac on to ensure that the requisite
COMPANIES ACT, 2013 standards of professional and ethical conduct are
1) The company has not given Inter Corporate loan to always upheld. It is the Company’s Policy to ensure that
any Body corporates covered under the provisions no employee is vic mized or harassed for bringing such
of sec on 186 of the Companies Act, 2013 during incidents to the a en on of the Company.
year ended 31st March, 2017. The prac ce of the Whistleblower Policy is overseen
2) The loan and advances given to employees are by the Audit Commi ee of the Board and no employee
covered under the remunera on policy of the has been denied access to the Commi ee. The
company. Hence sec on 186 of the Companies Act, Whistleblower Policy is available on the Company’s
2013 is not applicable. corporate website www.emamipaper.in
3) The company has not provided any guarantee. STATEMENT CONCERNING DEVELOPMENT AND
4) The details of the investments made by the company IMPLEMENTATION OF RISK MANAGEMENT POLICY
are given in the notes to the financial statements Pursuant to sec on 134(3)(n) of the Companies
PARTICULARS OF CONTRACTS OR ARRANGEMENTS Act, 2013 and relevant regula ons of SEBI (Lis ng
WITH RELATED PARTIES Obliga ons and Disclosure Requirements) Regula ons,
2015, the company has adopted Risk Management
All related party transac ons that were entered into policy for iden fica on and implementa on of Risk
during the financial year were on arm’s length basis Mi ga on Plan which is reviewed by the Management,
and were in the ordinary course of the business. There Audit Commi ee and the Board on half yearly basis. In
are no materially significant related party transac ons the opinion of the Board there is no such risk which may
made by the company with promoters, Key managerial threaten the existence of the company.
personnel or other designated persons which may have
DIRECTORS & KEY MANAGERIAL PERSONNEL
poten al conflict with interest of the company at large.
A) Directors re rement by rota on
Necessary disclosure regarding transac ons with related
par es has been made in the Notes to the Audited Shri M.B.S.Nair, Director (Opera ons) and Smt. Richa
Accounts. Agarwal (Director) would re re by rota on and,
being eligible, offer themselves for re-appointment.
The related party transac ons policy has been given on
the website of the company under the head Investors- B) Declara on by an Independent director(s) and re-
Corporate Governance. appointment, if any
Web link: h p://www.emamipaper.in/downloads All Independent directors have given declara ons
related-party-policy-tr.pdf that they meet the criteria of independence as
laid down under sec on 149(6) of the Companies
COMPOSITION OF AUDIT COMMITTEE Act, 2013 and relevant regula ons of SEBI (Lis ng
The composi on of Audit Commi ee of the company Obliga ons and Disclosure Requirements)
is men oned in the Corporate Governance Report Regula ons, 2015 (as amended from me to me).
a ached to this report. C) Key Managerial Personnel
DETAILS OF ESTABLISHMENT OF VIGIL MECHANISM During the year there was no change in the Key
As per requirement of sec on 177 (9) of the Companies Managerial Personnel of your Company.
20
POLICY ON DIRECTORS APPOINTMENT AND accoun ng standards had been followed along with
REMUNERATION proper explana on rela ng to material departures;
Pursuant to sec on 178 of the Companies Act, 2013, 2. The Directors had selected such accoun ng policies
the Board of the directors of the company has approved and applied them consistently and made judgments
the revised Nomina on and Remunera on policy as and es mates that are reasonable and prudent so
recommended by the Nomina on and Remunera on as to give a true and fair view of the state of affairs
Commi ee in their mee ng held on 27th January, 2015. of the company at the end of the financial year
The policy is disclosed in the Corporate Governance and of the profit and loss of the company for that
Report. period;
ANNUAL EVALUATION OF BOARD, ITS COMMITTEES 3. The Directors had taken proper and sufficient
AND INDIVIDUAL DIRECTORS care for the maintenance of adequate accoun ng
records in accordance with the provisions of the
Pursuant to the provisions of sec on 134(3)(p) of the Companies Act, 2013 for safeguarding the assets
Companies Act, 2013 and relevant regula ons of SEBI of the Company and for preven ng and detec ng
(Lis ng Obliga ons and Disclosure Requirements) fraud and other irregulari es;
Regula ons, 2015 (as amended from me to me),
the Board has carried out the annual performance 4. The Directors had prepared the annual accounts on
evalua on of its own performance, its commi ees and a going concern basis;
individual directors on 16th May, 2017, on the basis of 5. The Directors had laid down internal financial
agreed norms for evalua on. controls to be followed by the company and such
Further, the independent directors have evaluated the controls are adequate and opera ng effec vely;
performance of non-independent directors at a separate and

mee ng held on 31st January, 2017. 6. The Directors had devised proper systems to ensure
The manner in which the evalua on carried out has compliance with the provisions of all applicable laws
been explained in the Corporate Governance Report. and that such systems are adequate and opera ng
effec vely;
Mee ngs of the Board and Commi ee thereof
MISCELLANEOUS
The details have been covered in the Corporate
Governance Report. 1. Industrial Rela ons: During the year under review,
the Company enjoyed cordial rela onship with the
MANAGERIAL REMUNERATION AND PARTICULARS OF workers and employees at all levels.
EMPLOYEES
2. Significant and material orders passed by the
The informa on required pursuant to Sec on 197 regulators or courts or tribunals impac ng the going
read with Rule 5 of the Companies (Appointment and
Statutory Report
concern status and company’s opera ons in future:
Remunera on of Managerial Personnel) Rules, 2014 in
respect of managerial personnel and employees of the No such orders passed during the year under review.
company is a ached herewith in Annexure V. ACKNOWLEDGEMENT
RECEIPT OF COMMISSION BY THE DIRECTOR FROM The Board acknowledges the understanding and
HOLDING OR SUBSIDIARY COMPANY UNDER SECTION support shown by its lending financial ins tu ons,
197(14) banks, distributors, customers, suppliers, employees
Not Applicable and other business associates. Your Company operated
efficiently due to a culture of professionalism, integrity
CORPORATE GOVERNANCE and con nuous improvement leading to sustainable
The Corporate Governance Report and Management’s and profitable growth.
Financial Report
Discussion & Analysis Report are set out as Annexure VI

in this Report.
DIRECTORS’ RESPONSIBILITY STATEMENT For and on behalf of the
In terms of sec on 134(5) of the Companies Act, 2013 Board of Directors
the Directors would like to state that:-
Place : Kolkata A.V. AGARWAL
1. In the prepara on of annual accounts, the applicable Date : 16th May, 2017 Execu ve Chairman
21
Annexure to the Directors' Report
ANNEXURE - I TO THE DIRECTORS’ REPORT • In effluent treatment plant present air
blowers will be replaced with energy
Informa on under sec on 134(3)(m) of the Companies
efficient blowers having permanent
Act, 2013 read with Rule 8(3) of the Companies
magne c synchronous motor with air foil
(Accounts) Rules, 2014 and forming part of the Directors’
bearing, resultant saving 250 KW per hour.
Report for the year ended March, 31, 2017.
• Steam and condensate system of PM #
A. CONSERVATION OF ENERGY :
1 and PM # 2 will be modified to reduce
i) Energy conserva on measures taken: steam consump on per ton of paper.
• Discarded water from top layer of Board • Electrical system study including harmonic
Machine is u lized in filler layer street, study for improvement of plant availability
instead of recycling the same in top and reliability.
layer loop with dedicated poly disc filter.
B. TECHNOLOGICAL ABSORPTION
Running of various pumps and recovered
chest agitator engaged with poly disc filter i) Research & Development ( R & D ):
are discon nued resul ng into reduc on of
a) Specific area in which in-house R&D projects
power consump on by 200 unit per hour.
are carried out by the company during
• Variable Frequency Drives are installed 2016-17
for reduc on in power due to thro led
• In top coat recipe tradi onal binder element
opera on condi on in equipment like HD
is replaced with more effec ve alterna ve
cleaners, centri-cleaners etc.
having different chemical composi on
• In board mill v – belts are replaced by cogged resul ng into increased printability,
flat belts in iden fied equipment, thereby improved heat and light fastness.
reducing specific power consump on of
• In pre and middle coat use of low TG binder
those equipments.
gives be er binding strength which results
• 85 TPH boiler is being run in Auto in be er IGT and be er acceptable board
Combus on mode along with adop on for high speed prin ng machine.
of op miza on measures in maintaining
• Alterna ve Op cal Brightness Agent (OBA)
primary air pressure, wind box pressure;
having high E value is introduced in order to
bed height is also adjusted to reach
maintain high and consistent brightness in
op mum efficiency. Result is substan al
paperboard.
reduc on in unburnt coal.
• In produc on of SBS grade paperboard,
• Thorough audit of steam consump on
use of uniform furnish mix in all four
pa ern and process return condensate
layers introduced instead of using separate
is conducted. Steam consump on is
furnish mix for top layer that used in other
op mized in that process.
three layers. This makeover has contributed
ii) Addi onal investment and proposal for in op mized paper quality, efficient use of
reduc on in energy consump on: recovered fiber and resultant saving in cost.
• Exis ng 15 MW (SST-150 model) turbine • Fabric width in all layers is increased to stop
will be upgraded to SST-300 model which fiber flushing from edges and consequen al
will generate 18 MW electricity with same reduc on in paper break.
steam inlet flow. This will increase heat rate
• Clay par cles is increased in top coat recipe
of the turbine by 10%.
which contributes to be er prin ng result
• Each 250 KW HT motors of two condenser by increased surface smoothness and gloss.
cooling water pumps will be replaced with
• Change in process logic of auto pilot, which
110 KW LT motors, which will save 200 unit
maintain uniform paperboard GSM.
per hour.
22
Annexure - I to the Directors' Report (Contd.)
• Steam pulse line modifica on for be er • Maximize u liza on of treated effluent in
cylinder DP control green belt development.
• Modifica on in pulper totalizer and d) Expenditure on R & D
break mer for be er analysis and record
No separate accoun ng for Research and
keeping.
Development ac vi es was made as the same
• Modifica on of web break related logic was connected with process and product
with pre-dryer group stop and chopper to development.
avoid jamming and to reduce me.
ii) Technology absorp on:
• Secondary sludge has been used in screw
Efforts made towards technology absorp on,
press along with primary sludge and be er
adop on and innova on
dryness is achieved by using oxidizing bio
side. Be er dryness increases usable heat • Tail Threading system installed in board mill,
value of sludge while u lized in boiler. which helps in reducing feeding delay me and
reduc on in broke genera on.
b) Benefits derived as a results of the above
R&D • Rotary type consistency transmi ers are
installed at mixing chest in Board Mill,
Efforts made towards in-house R & D ini a ves
which facilitates uniform GSM in produced
has derived following benefits:-
paperboard.
– Be er quality paper and paperboard with
• Online PH-transmi er is installed at board
increased paper strength and improved
machine wet end for online monitoring and

printability.
control chemistry at wet end. By installing
– Saving in cost online PH-transmi er wet end breaks are be er
controlled.
– Decreased paper breaks
• Six break sensors are installed at iden fied units
– Reduced consump on of energy and water
of the paperboard machine, which will facilitate
– Smoother and improved produc on the machine to resume produc on faster a er
process paper break, by reduc on of jamming during
paper break.
c) Future ac on plan
• Control valve – feedback system is installed CCK
• Condi on Monitoring System (CMS) will
for be er control over chemical consump on
be installed to monitor bearings of cri cal
Statutory Report
and uniform coa ng.
rolls and cylinders of board mill. Regular
monitoring will facilitate preven ve • Centralized lubrica on system is installed in
maintenance and trouble free opera on. wire and press sec on of board mill, which
eliminates break down from human error in
• Con nual improvement of yield.
lubrica on.
• Con nual improvement of brightness,
• TC coated winder drum rolls and rider roll are
strength, bulk and other parameters of
upgraded to rubber coated rolls in paperboard
paper and paperboard.
manufacturing machine. Rubber rolls are best
• Reduc on of fresh water consump on suited for paperboard produc on and will go
Financial Report
by recycling and reuse of treated process long before it requires a change.

water and effluent.
• Five web choppers are installed at iden fied
• Use of alterna ve chemicals for quality sec ons of board machine to ensure that paper
op miza on and cost saving. sheet is cut completely during paper breaks and
• Con nual reduc on of power and steam no jamming occurs so that paper can be reeled
consump on in produc on process. faster a er a paper break.
23
Annexure - I to the Directors' Report (Contd.)
• Fully automa c tail cu er is installed at wet • Quality of finished paper and paperboard
end of the board machine, which will eliminate improved by introduc on of con nuous online
possibility of jamming at wet end in case of monitoring and automa on.
paper break, consequen ally me will be saved
• Break downs are avoided and life of machinery
to start paper reeling a er a paper break.
and equipment are increased by installa on of
• Five maxi flex blade with pneuma c loaded various health checking measures along with
doctor has been installed to ensure that no preven ve maintenance.
paper get wrapped on the dryer cylinders even
C. FOREIGN EXCHANGE EARNINGS AND OUTGO:
at a very high speed.
Benefits derived as result of above efforts 2016-17 2015-16
Foreign exchange 2,556.56 714.73
• Overall opera onal efficiency of the plants earnings
improved by adop on and absorp on of state- Foreign exchange 46,381.64 31,302.94
of-the art technologies. outgo
24
Annexure - II to the Directors' Report (Contd.)
Form No. MGT-9
EXTRACT OF ANNUAL RETURN
as on the financial year ended on 31.03.2017
[Pursuant to sec on 92(3) of the Companies Act, 2013 and rule 12(1) of the Companies
(Management and Administra on) Rules, 2014]
I. REGISTRATION AND OTHER DETAILS:
i) CIN L21019WB1981PLC034161
ii) Registra on Date 26/09/1981
iii) Name of the Company EMAMI PAPER MILLS LIMITED
iv) Category / Sub-Category of Company limited by shares/ Indian Non-Government Company

the Company
v) Address of the registered ACROPOLIS, Unit 1, 15th Floor, 1858/1, Rajdanga Main Road
office and contact details Kolkata -700107
Phone: (033) 66271301, Fax: (033) 66271338
Email id: emamipaper@emamipaper.in

vi) Whether listed company Yes
vii) Name, Address and Contact MAHESHWARI DATAMATICS PRIVATE LIMITED

details of Registrar and 23, R. N. Mukherjee Road, 5th Floor
Transfer Agent, if any Kolkata - 700001
Phone: 033-2243-5029/2248-2248
Fax: 033-22484787
Email: mdplc@yahoo.com
II. PRINCIPAL BUSINESS ACTIVITIES OF THE COMPANY
All the business ac vi es contribu ng 10 % or more of the total turnover of the company shall be stated:-
Statutory Report
SI. Name and Description NIC Code of the % to total turnover
No. of main products / services Product/ service of the company
1 Newsprint 17012 38.00%
2 Wri ng and Prin ng Paper 17093 6.86%
3 Paper Boards 17016 54.94%
III. PARTICULARS OF HOLDING, SUBSIDIARY AND ASSOCIATE COMPANIES
SI. Name and Address of the CIN/GLN Holding/ % of shares Applicable

No. Company Subsidiary held Sec on
Financial Report
/ Associate
1 Not Applicable – – – –
25
IV. SHARE HOLDING PATTERN
(Equity Share Capital Breakup as percentage of Total Equity
(i) Category-wise Share Holding
Category of Shareholders No. of Shares held at the beginning No. of Shares held at the end %Change
of the year (01.04.2016) of the year (31.03.2017) during the
Demat Physical Total %of Total Demat Physical Total % of Total year
Share Share
A. Promoter
(1) Indian
a) Individual/ HUF 5656976 0 5656976 9.3505 5656976 0 5656976 9.3505 NIL
b) Central/ State Government(s)
c) Bodies Corp. 39576160 0 39576160 65.4162 39576160 0 39576160 65.4162 NIL
d) Banks / FI
e) Any Other....
Sub-total (A1) 45233136 0 45233136 74.7667 45233136 0 45233136 74.7667 NIL
(2) Foreign
a) Individual/ HUF 125000 0 125000 0.2066 125000 0 125000 0.2066 NIL
b) Bodies Corp.
c) Ins tu ons
d) Qualified Foreign Investor
e) Any Other....
Sub-total (A2) 125000 0 125000 0.2066 125000 0 125000 0.2066 NIL
Total shareholding of Promoter 45358136 0 45358136 74.9733 45358136 0 74.9733 4.9733 NIL
and Promoter Group A = (A)(1)
+ (A)(2)
B. Public Shareholding
1. Ins tu ons
a) Mutual Funds
b) Banks / FI 0 0 0 0 0 0 0 0 0
c) Central/ State Government(s) 0 0 0 0 0 65352 65352 0.108 100
d) Venture Capital Funds 0 0 0 0 0 0 0 0 0
e) Insurance Companies 0 0 0 0 0 0 0 0 0
f) FIIs 0 0 0 0 0 0 0 0 0
g) Foreign Venture Capital
Investors
h) Qualified Foreign Investor 0 0 0 0 0 0 0 0 0
i) Any other
Sub-total (B1) 0 0 0 0 0 65352 65352 0.108 100
2. Non Ins tu ons
a) Bodies Corp.
i) Indian 10977401 109000 11086401 18.3249 7334274 103000 7437274 12.2932 -32.9150
ii) Overseas 0 0 0 0 0 0 0 0 0
b) Individuals
i. Individual Shareholder’s 1425049 265204 1690253 2.7939 1400389 205127 1605516 2.6538 -5.0133
holding: nominal share capital
up to Rs.1 lakh
26
Category of Shareholders No. of Shares held at the beginning No. of Shares held at the end %Change
of the year (01.04.2016) of the year (31.03.2017) during the
Demat Physical Total %of Total Demat Physical Total % of Total year
Share Share
ii. Nominal Share Capital in 347064 0 347064 0.5737 5994031 0 5994031 9.9076 1627.0679
excess of Rs.1 lakh
c) Others (Specify)
Non Resident Indians 10620 0 10620 0.0176 13561 0 13561 0.0226 28.5404
Qualified Foreign Investor
Custodian of Enemy Property
Foreign Na onals
Clearing Members 15926 0 15926 0.0263 22940 0.000 22940 0.0379 44.0412
Trusts
Foreign Bodies D R
Foreign Por olio Investors
NBFCs registered with RBI 1990650 0 1990650 3.2904 2000 0 2000 0.0033 -99.8995
Sub – total (B2) 14766710 374204 15140914 25.0268 14767285 308127 15075412 24.9184 -0.4326
Total Public shareholding(B) = 14766710 374204 15140914 25.0268 14767285 373479 15140764 25.0264 -0.0010
(B)(1)+(B)(2)
C. Shares held by Custodian for 0 0 0 0 0 0 0 0 0

GDRs & ADRs
Grand Total (A + B + C) 60124846 374204 60499050 100.000 60125571 373479 60499050 100.000 0.0000
(ii) Shareholding of Promoters
SI Shareholder’s Name Shareholding at the beginning Shareholding at the end %

No of the year 01.04.2016 of the year 31.03.2017 Change in
No. % of %of No. % of %of Share
of total Shares of total Shares holding
Shares Shares Pledged/ Shares Shares Pledged / During the
of the encumbered of the encumbered year
company to total company to total
Statutory Report
shares shares
1 Diwakar Viniyog Pvt Ltd 9469810 15.6528 NIL 9469810 15.6528 NIL NIL
2 Emami Limited 7946000 13.1341 NIL 7946000 13.1341 NIL NIL
3 Suntrack Commerce Pvt Ltd 7633900 12.6182 NIL 7633900 12.6182 NIL NIL
4 Bhanu Vyapaar Pvt Ltd 6005250 9.9262 NIL 6005250 9.9262 NIL NIL
5 Emami Enclave Makers Pvt Ltd 2906000 4.8034 NIL 2906000 4.8034 NIL NIL
6 Emami High Rise Pvt Ltd. 2808000 4.6414 NIL 2808000 4.6414 NIL NIL
7 Suraj Viniyog Pvt Ltd 2807200 4.6401 NIL 2807200 4.6401 NIL NIL
8 Pri Sureka 1520926 2.5140 NIL 1520926 2.5140 NIL NIL
Financial Report
9 Radheshyam Goenka 1161250 1.9195 NIL 1161250 1.9195 NIL NIL

10 Sushil Kumar Goenka 726750 1.2013 NIL 726750 1.2013 NIL NIL
11 Raj Kumar Goenka 530000 0.8760 NIL 530150 0.8763 NIL NIL
12 Meena Goenka 289050 0.4778 NIL 289050 0.4778 NIL NIL
13 Santosh Goenka 239550 0.3960 NIL 239550 0.3960 NIL NIL
14 Saroj Goenka 137000 0.2264 NIL 137000 0.2264 NIL NIL
27
15 Amitabh Goenka 125000 0.2066 NIL 125000 0.2066 NIL NIL
16 Ritu Goenka 0 NIL NIL 124813 0.2063 NIL 100.000
17 Shru Goenka 0 NIL NIL 124813 0.2063 NIL 100.000
18 Ashish Goenka(HUF) 0 NIL NIL 124812 0.2063 NIL 100.000
19 Amitabh Goenka(HUF) 0 NIL NIL 124812 0.2063 NIL 100.000
20 Indu Goenka 111400 0.1841 NIL 111400 0.1841 NIL NIL
21 Mohan Goenka 102000 0.1686 NIL 102000 0.1686 NIL NIL
22 Sushil Kumar Goenka (HUF) 100500 0.1661 NIL 100500 0.1661 NIL NIL
23 Manish Goenka 87000 0.1438 NIL 87000 0.1438 NIL NIL
24 Ashish Goenka 75000 0.1240 NIL 75000 0.1240 NIL NIL
25 Dhiraj Agarwal 25000 0.0413 NIL 25000 0.0413 NIL NIL
26 Aditya Vardhan Agarwal 12500 0.0207 NIL 12500 0.0207 NIL NIL
27 Harsh Vardhan Agarwal 10750 0.0178 NIL 10750 0.0178 NIL NIL
28 Puja Goenka 10500 0.0174 NIL 10500 0.0174 NIL NIL
29 Usha Agarwal 8300 0.0137 NIL 8300 0.0137 NIL NIL
30 Radheshyam Agarwal 3500 0.0058 NIL 3500 0.0058 NIL NIL
31 Shan Devi Agarwal 1750 0.0029 NIL 1750 0.0029 NIL NIL
32 Pramod Bajoria 1750 0.0029 NIL 1750 0.0029 NIL NIL
33 Laxmi Devi Bajoria 1750 0.0029 NIL 1750 0.0029 NIL NIL
34 Richa Agarwal 1500 0.0025 NIL 1500 0.0025 NIL NIL
35 Suresh Kumar Goenka 499250 0.8252 NIL 0 0.0000 NIL -100.000
Total: 45358136 74.9733 NIL 45358286 74.9733 NIL 0.0003
(iii) Change in Promoters’ Shareholding (please specify, if there is no change)
Sl. Par culars Shareholding at the Cumula ve shareholding

No. beginning of the year during the year
No.of Shares % of total shares of No. of Shares Percentage of Total
Company shares of Company
At the beginning of the year
Datewise Increase/Decrease in Promoters
Shareholding during the year specifying
the reasons for increase / decrease There is no change to promoters’ shareholding during the period April 1, 2016 to
(e.g.allotment/Transfer/bonus/sweat/ March, 31, 2017 except inter – se transfer.
equity etc.)
At the End of the year (or on the date of
separa on, if prepared during the year)
28
(iv) Shareholding PaƩern of top ten Shareholders (other than Directors, Promoters and Holders of GDRs and
ADRs):
SI. For Each of the Top 10 Shareholders Shareholding at the Cumula ve shareholding
No beginning of the year during the year
No. of shares % of total No. of shares % of total
shares of shares of
company company
Date wise Increase / Decrease in Shareholding
during the year specifying the reasons for
increase/decrease (e.g. allotment/transfer/
bonus/sweat equity etc.):
1. INDISTOCK PRIVATE LIMITED#
As on 01-04-2016 580000 0.9587 580000 0.9587
As on 30-09-2016- Transfer -500000 0.8265 80000 0.1322
As on 7-10-2016- Transfer -80000 0.1322 0 0.0000
As on 31-03-2017 0 0.0000 0 0.0000
2. BALJIT SECURITIES PVT.LTD
As on 01-04-2016 0 0.0000 0 0.0000
As on 29-07-2016- Transfer 400000 0.6612 400000 0.6612
As on 05-08-2016- Transfer 400000 0.6612 800000 1.3223
As on 12-08-2016- Transfer -800000 1.3223 0 0.0000

As on 31-03-2017 0 0.0000 0 0.0000
3. EAST INDIA SECURITIES LTD
As on 01-04-2016 460000 0.7603 460000 0.7603
As on 31-03-2017 460000 0.7603 460000 0.7603
4 GYAN TRADERS LIMITED#
As on 01-04-2016 300000 0.4959 300000 0.4959
As on 07-10-2016 - Transfer -300000 0.4959 0 0.0000
As on 31-03-2017 0 0.0000 0 0.0000
5. MONET SECURITIES PRIVATE LTD.#
As on 01-04-2016 775000 1.2810 775000 1.2810
Statutory Report
As on 23-09-2016 - Transfer -775000 1.2810 0 0.0000
As on 31-03-2017 0 0.0000 0 0.0000
6. PLACID LIMITED#
As on 01-04-2016 1985150 3.2813 1985150 3.2813
As on 29-07-2016 - Transfer -400000 0.6612 1585150 2.6201
As on 05-08-2016 - Transfer -1200000 1.9835 385150 0.6366
As on 12-08-2016 - Transfer -385150 0.6366 0 0.0000
As on 03-31-2017 0 0.0000 0 0.0000
7. PENGUIN TRADING & AGENCIES LIMITED
As on 01-04-2016 1000000 1.6529 1000000 1.6529
Financial Report
As on 31-03-2017 1000000 1.6529 1000000 1.6529

8. ANAND RATHI GLOBAL FINANCE LIMITED
As on 01-04-2016 1710000 2.8265 1710000 2.8265
As on 31-03-2017 1710000 2.8265 1710000 2.8265
29
shares of shares of
company company
9. JMS MINING SERVICES PRIVATE LIMITED#
As on 01-04-2016 1842386 3.0453 1842386 3.0453
As on 06-05-2016 - Transfer -1842386 3.0453 0 0.0000
As on 31-03-2017 0 0.0000 0 0.0000
10. SPARK SECURITIES PRIVATE LTD

As on 01-04-2016 0 0.0000 0 0.0000
As on 30-09-2016 - Transfer 500000 0.8265 500000 0.8265
As on 07-10-2016 - Transfer -500000 0.8265 0 0.0000
As on 31-03-2017 0 0.0000 0 0.0000
11. SIMPLEX INFRASTRUCTURES LIMITED
As on 01-04-2016 370500 0.6124 370500 0.6124
As on 31-03-2017 370500 0.6124 370500 0.6124
12. SYSTEMATIX SHARES AND STOCKS (INDIA)
LIMITED
As on 01-04-2016 0 0.0000 0 0.0000
As on 06-05-2016 - Transfer 1842386 3.0453 1842386 3.0453
As on 13-05-2016 - Transfer -1842386 3.0453 0 0.0000
As on 21-10-2016 - Transfer 500 0.0008 500 0.0008
As on 28-10-2016 - Transfer -299 0.0005 201 0.0003
As on 11-11-2016 - Transfer 300 0.0005 501 0.0008
As on 18-11-2016 - Transfer -451 0.0007 50 0.0001
As on 25-11-2016 - Transfer -50 0.0001 0 0.0000
As on 02-12-2016 - Transfer 700 0.0012 700 0.0012
As on 03-03-2017 - Transfer 50 0.0001 750 0.0012
As on 24-03-2017 - Transfer -537 0.0009 213 0.0004
As on 31-03-2017 - Transfer -213 0.0004 0 0.0000
13. Avees Trading And Finance Private Limited
As on 01-04-2016 2769999 4.5786 2769999 4.5786
As on 31-03-2017 2769999 4.5786 2769999 4.5786
14. BHAGWATI PRASAD JALAN*
As on 01-04-2016 97000 0.1603 97000 0.1603
As on 05-08-2016 - Transfer 350000 0.5785 447000 0.7388
As on 12-08-2016 - Transfer 100000 0.1653 547000 0.9041
As on 31-03-2017 547000 0.9041 547000 0.9041
15. PANKAJ JALAN*
As on 01-04-2016 0 0.0000 0 0.0000
As on 05-08-2016 - Transfer 125000 0.2066 125000 0.2066
As on 12-08-2016 - Transfer 400000 0.6612 525000 0.8678
As on 23-09-2016 - Transfer 100000 0.1653 625000 1.0331
As on 07-10-2016 - Transfer 255000 0.4215 880000 1.4546
As on 31-03-2017 880000 1.4546 880000 1.4546
30
shares of shares of
company company
16. NIRAJ JALAN *
As on 01-04-2016 0 0.0000 0 0.0000
As on 05-08-2016 - Transfer 125000 0.2066 125000 0.2066
As on 12-08-2016 - Transfer 450000 0.7438 575000 0.9504
As on 23-09-2016 - Transfer 200000 0.3306 775000 1.2810
As on 07-10-2016 - Transfer 200000 0.3306 975000 1.6116
As on 31-03-2017 975000 1.6116 975000 1.6116
17. PARWATI DEVI JALAN *
As on 01-04-2016 0 0.0000 0 0.0000
As on 12-08-2016 - Transfer 435150 0.7193 435150 0.7193
As on 23-09-2016 - Transfer 100000 0.1653 535150 0.8846
As on 07-10-2016 - Transfer 396000 0.6546 931150 1.5391
As on 14-10-2016 - Transfer -146000 0.2413 785150 1.2978
As on 21-10-2016 - Transfer 146000 0.2413 931150 1.5391
As on 31-03-2017 931150 1.5391 931150 1.5391
18. PRABHADEVI PAWANKUMAR SANGHAI *

As on 01-04-2016 0 0.0000 0 0.0000
As on 3-05-2016 - Transfer 345500 0.5711 345500 0.5711
As on 31-03-2017 345500 0.5711 345500 0.5711
*Not in the list of Top 10 shareholders as on 01/04/2016. The same has been reflected above since the
shareholder was one of the Top 10 shareholders as on 31/03/2017.
#Ceased to be in the list of Top 10 shareholders as on 31/03/2017. The same is reflected above since the
shareholder was one of the Top 10 shareholders as on 01/04/2016.
(v) Shareholding of Directors and Key Managerial Personnel(KMP):
SI. For Each of the Par culars Shareholding at the Cumula ve Shareholding
Statutory Report
No Directors and KMP beginning of the year during the year
No. of % of total No. of % of total
shares shares shares shares
1. A.V. Agarwal At the beginning of the year 12500 0.0207 12500 0.0207
Transfer/Bonus/ Purchase/Sale Nil Nil Nil Nil
At the end of the year 12500 0.0207
2. Manish Goenka At the beginning of the year 87000 0.1438 87000 0.1438
Financial Report
3.. P. S. Patwari At the beginning of the year

Transfer/Bonus/ Purchase/Sale
At the end of the year NIL
4.. J. Godbole At the beginning of the year
Transfer/Bonus/ Purchase/Sale NIL
At the end of the year
31
SI. For Each of the Par culars Shareholding at the Cumula ve Shareholding
No Directors and KMP beginning of the year during the year
No. of % of total No. of % of total
shares shares shares shares
5.. S. Balasubramanian At the beginning of the year

6. U.G.Bhat At the beginning of the year
7. J. K. Khetawat At the beginning of the year
8. H. M. Marda At the beginning of the year 2150 0.0036 2150 0.0036
9. M.B.S.Nair At the beginning of the year 1000 0.0017 1000 0.0017
10. Richa Agarwal At the beginning of the year 1500 0.0025 1500 0.0025
11. S. K. Khetan At the beginning of the year
12. G. Saraf At the beginning of the year
V. INDEBTEDNESS
Indebtedness of the Company including interest outstanding/accrued but not due for payment
Secured Loans Unsecured Deposits Total
excluding deposits Loans (Trade) Indebtedness
Indebtedness at the beginning of the financial year
i) Principal Amount 1,07,412.35 449.53 1,07,861.88
ii) Interest due but not paid
iii) Interest accrued but not due 514.58 31.10 545.68
Total (i+ii+iii) 1,07,926.93 480.63 1,08,407.56
Change in Indebtedness during the financial year
• Addi on 8151.93 63.66 8215.59
• Reduc on 2590.80 37.38 2628.18
Net Change 5561.13 26.28 5587.41
Indebtedness at the end of the financial year
i) Principal Amount 1,12,836.13 471.75 1,13,307.88
ii) Interest due but not paid
iii) Interest accrued but not due 651.93 35.16 687.09
Total (i+ii+iii) 1,13,488.06 506.91 1,13,994.97
32
VI. REMUNERATION OF DIRECTORS AND KEY MANAGERIAL PERSONNEL
A. RemuneraƟon to Managing Director, Whole-Ɵme Directors and/or Manager:
SI. Par culars of Remunera on Name of MD/WTD/ Manager Total

No. Shri P. S. Shri A.V. Shri Manish Shri M.B.S. Amount
Patwari Agarwal Goenka Nair
1. Gross salary
(a) Salary as per provisions contained in
sec on 17(1) of the Income-tax Act, 1961 1,35,94,800 60,10,080 60,10,080 86,06,422 3,42,21,382
(b) Value of perquisites u/s 17(2) of the

Income-tax Act, 1961 20,77,050 2,69,603 52,253 10,01,910 34,00,816
(c) Profits in lieu of salary under sec on

17(3) of the Income-tax Act, 1961
2. Stock Op on NIL NIL NIL NIL NIL
3. Sweat Equity NIL NIL NIL NIL NIL
4. Commission
- as % of profit NIL NIL NIL NIL NIL
- Others, specify….

5. Others, please specify NIL NIL NIL NIL NIL
Total (A) 1,56,71,850 62,79,683 60,62,333 96,08,332 3,76,22,198
Ceiling as per the Act 1,71,20,000 77,20,000 77,20,000 1,03,44,995 4,29,04,995
B. RemuneraƟon to other Directors:
SI. Par culars of Remunera on Name of Directors Total

No. Shri J.N. Shri H.M. Shri S. Shri J.K. Shri U.G. Smt. Amount
Godbole Marda Balasubramanian Khetawat Bhat Richa
Agarwal
1. Independent Directors
• Fee for attending board/
Statutory Report
committee meetings 2,20,000 2,50,000 1,50,000 2,05,000 1,15,000 NIL 9,40,000
• Commission NIL NIL NIL NIL NIL NIL NIL
• Others, please specify NIL NIL NIL NIL NIL NIL NIL
Total (1) 2,20,000 2,50,000 1,50,000 2,05,000 1,15,000 NIL 9,40,000
2. Other Non-Executive
Directors
• Fee for attending board/ NIL NIL NIL NIL NIL 1,30,000 1,30,000
committee meetings
• Commission NIL NIL NIL NIL NIL NIL NIL
• Others, please specify NIL NIL NIL NIL NIL NIL NIL
Financial Report
Total (2) NIL NIL NIL NIL NIL 1,30,000 1,30,000

Total (B) = (1 + 2) 2,20,000 2,50,000 1,50,000 2,05,000 1,15,000 1,30,000 10,70,000
Total Managerial Remunera on
Overall Ceiling as per the Act 12,00,000 14,00,000 8,00,000 11,00,000 5,00,000 6,00,000 56,00,000
33
A. REMUNERATION TO KEY MANAGERIAL PERSONNEL OTHER THAN MD/ MANAGER/ WTD
SI. Par culars of Remunera on Key Managerial Personnel

No. C.F.O. Company Secretary Total
Shri S. K. Khetan Shri G. Saraf
1. Gross salary
(a) Salary as per provisions contained in sec on 17(1) 72,96,070 39,88,310 1,12,84,380
of the Income-tax Act, 1961
(b) Value of perquisites u/s 17(2) of the Income-tax 7,72,050 5,31,533 13,03,583
Act, 1961
(c) Profits in lieu of salary under sec on 17(3) of the - - -
Income-tax Act, 1961
2. Stock Op on - - -
3. Sweat Equity - - -
4. Commission - as % of profit - others, specify... - - -
5. Others, please specify - - -
Total 80,68,120 45,19,843 1,25,87,963
Ceiling as per the Act N.A. N.A. N.A.
VII. PENALTIES / PUNISHMENT/ COMPOUNDING OF OFFENCES:
Type Sec on of the Brief Details of Penalty Authority Appeal made, if

Companies Act Descrip on /Punishment/ [RD / NCLT/ any (give Details)
Compounding NCLAT COURT]
fees imposed
A. COMPANY
Penalty NIL NIL NIL NIL NIL
Punishment NIL NIL NIL NIL NIL
Compounding NIL NIL NIL NIL NIL
B. DIRECTORS
C. OTHER OFFICERS IN DEFAULT
34
Annexure - III to the Directors' Report (Contd.)
ANNUAL REPORT ON CORPORATE SOCIAL RESPONSIBILITY (CSR) ACTIVITIES
1. A brief outline of the company’s CSR Policy is stated herein below:
Our aim is to undertake proac ve engagement with stakeholders to ac vely contribute to the socio-economic
development of the periphery/ community in which it operates. We shall create a posi ve footprint within
the society by crea ng inclusive and enabling infrastructure/ environment for livable communi es. We shall
emphasize on providing basic nutri on/ health care facili es with special focus on establishing health centers for
the mother and child as well as the elderly.
To pursue these objec ves we will con nue to:
i) Work ac vely in areas of eradica on of hunger and poverty, including preven ve health care and sanita on
and making available safe drinking water.
ii) Provide opportunity and financial assistance for the promo on of educa on.
iii) Provide medical aid to the needy and down trodden.
Web link : h p://www.emamipaper.in/downloads/csr-policy.pdf
2. Composi on of CSR Commi ee:
Name of the Member Designa on
Shri A.V. Agarwal, Execu ve Chairman Chairman
Shri J Godbole, Independent Director Member
Shri P.S.Patwari, Execu ve Director Member
Shri Manish Goenka, Whole me Director Member

Shri H.M. Marda, Independent Director Member
Smt. Richa Agarwal, Woman Director Member
3. Average net profit of the company for last three financial years: Rs.1675.60 lacs
4. Prescribed CSR Expenditure (2% of the amount as in item 3 above): Rs.33.51 lacs
5. Details of CSR spend for the financial year 2016-17:
a) Total amount spent for the financial year: Rs.191.91 lacs
b) Amount unspent, if any:
c) Manner in which the amount spent during the financial year is detailed below:
Sl. Projects/ Ac vi es Sector Loca on Amount Amount Cumula ve Amount
Statutory Report
No. outlay spent on the expenditure spent: Direct
(Budget) project or up to repor ng or through
project or program period implemen ng
program agency
wise
1 Eradica ng hunger, poverty Eradica on Balasore 70.00 68.40 68.40 68.40
and malnutri on, promo ng of hunger & (Odisha) & (Direct)
preven ve health care and health care Dakshineswar
sanita on and making available (Kolkata)
safe drinking water.
Financial Report
2 Promo ng educa on, Literacy Balasore 30.00 36.86 36.86 36.86

including special educa on (Odisha) & (Direct)
and employment enhancing Dakshineswar
voca on skills especially among (Kolkata)
children, women, elderly, and the
differently abled and livelihood
enhancement projects.
35
Annexure - III to the Directors' Report (Contd.)
Sl. Projects/ Ac vi es Sector Loca on Amount Amount Cumula ve Amount
No. outlay spent on the expenditure spent: Direct
(Budget) project or up to repor ng or through
project or program period implemen ng
program agency
wise
3 Promo ng gender equality, Gender Balasore 15.00 9.62 9.62 9.62
empowering women and equality (Odisha) & (Direct)
measures for reducing & women Dakshineswar
inequali es faced by socially and empowerment (Kolkata)
economically backward groups.
4 Ensuring environmental Environment Balasore 37.00 34.32 34.32 34.32
sustainability, ecological balance, (Odisha) & (Direct)
animal welfare, agroforestry, Dakshineswar
conserva on of natural (Kolkata)
resources.
5 Protec on of na onal heritage, Protec on Balasore 16.00 15.06 15.06 15.06
art and culture including of Historical (Odisha) & (Direct)
restora on of buildings and sites importance Dakshineswar
of historical importance and and na onal (Kolkata)
works of art. heritage
6 Contribu on to Prime Ministers Dona on Balasore 5.00 -- -- --
Na onal Relief Fund or any (Odisha) &
other fund setup by the Central Dakshineswar
Government for socio economic (Kolkata)
development and relief
7 Rural Development Development Balasore 25.00 27.27 27.27 27.27
(Odisha) & (Direct)
Dakshineswar
(Kolkata)
8 Building CSR ac vi es Employee Balasore 2.00 0.38 0.38 0.38
as per Rule 4(6) service (Odisha) & (Direct)
Dakshineswar
(Kolkata)
200.00 191.91 191.91 191.91
36
Annexure - IV to the Directors' Report (Contd.)
FORM NO. MR-3
SECRETARIAL AUDIT REPORT
FOR THE FINANCIAL YEAR ENDED 31ST MARCH, 2017
[Pursuant to sec on 204(1) of the Companies Act, 2013 and rule No.9 of the Companies (Appointment and
Remunera on of Managerial Personnel) Rules, 2014]
To
The Members,
EMAMI PAPER MILLS LIMITED
We have conducted the secretarial audit of the compliance of applicable statutory provisions and the adherence to
good corporate prac ces by EMAMI PAPER MILLS LIMITED (hereina er called “the Company”). Secretarial Audit
was conducted in a manner that provided us a reasonable basis for evalua ng the corporate conducts/statutory
compliances and expressing our opinion thereon.
The Company’s Management is responsible for prepara on and maintenance of secretarial and other records and for
devising proper systems to ensure compliance with the provisions of applicable laws and Regula ons.
Based on our verifica on of the books, papers, minute books, forms and returns filed and other records maintained by
the Company and also the informa on provided by the Company, its officers, agents and authorized representa ves
during the conduct of secretarial audit, we hereby report that in our opinion, the Company has, during the audit
period covering the financial year ended on 31st March, 2017 complied with the statutory provisions listed hereunder
and also that the Company has proper Board-processes and compliance mechanism in place to the extent, in the

manner and subject to the repor ng made hereina er:
We have examined the books, papers, minute books, forms and returns filed and other records maintained by the
Company for the financial year ended on 31st March, 2017, to the extent applicable, according to the provisions of:
i) The Companies Act, 2013 (the Act) and the rules made thereunder;
ii) The Securi es Contracts (Regula on) Act, 1956 and Rules made thereunder;
iii) The Depositories Act, 1996 and Regula ons and Bye-laws framed thereunder;
iv) Foreign Exchange Management Act, 1999 and the Rules and Regula ons made thereunder to the extent of
Foreign Direct Investment, Overseas Direct investment and External Commercial Borrowings;
v) The Regula ons and Guidelines prescribed under the Securi es & Exchange Board of India Act, 1992 (“SEBI Act”)
Statutory Report
or by SEBI, to the extent applicable:
a) The Securi es & Exchange Board of India (Substan al Acquisi on of Shares and Takeover) Regula ons, 2011
b) The Securi es & Exchange Board of India (Prohibi on of Insider Trading) Regula ons, 2015
c) The Securi es & Exchange Board of India (Issue of Capital and Disclosure Requirements) Regula ons, 2009
d) The Securi es & Exchange Board of India (Employee Stock Op on Scheme and Employee Stock Purchase
Scheme) Guidelines, 1999
e) The Securi es & Exchange Board of India (Issue and lis ng of Debt securi es) Regula ons, 2008
f) The Securi es & Exchange Board of India (Registrars to an Issue and Share Transfer Agents) Regula ons,
Financial Report
1993
g) The Securi es & Exchange Board of India (Delis ng of Equity Shares) Regula ons, 2009
h) The Securi es & Exchange Board of India (Buyback of Securi es) Regula ons, 1998
37
Annexure - IV to the Directors' Report (Contd.)
vi) Other than fiscal, labour and environmental laws which are generally applicable to all manufacturing/trading
companies, the following laws/acts are also, inter alia, applicable to the Company:
a) The Environment Protec on Act 1986
b) The Water ( Preven on and Control of Pollu on ) Act, 1974
c) The Air ( Preven on and Control of Pollu on ) Act 1981
d) Hazardous Waste (Management, Handling, and Transboundary Movement) Rules 2008, as amended from
me to me.
e) The Indian Boilers Act 1923
We have also examined compliance with the applicable clauses of the following:
a) Secretarial Standards issued by The Ins tute of Company Secretaries of India. [Applicable from 1st July,
2015]
b) The Lis ng Agreements entered into by the Company with the BSE Limited and the provisions of the
Securi es and Exchange Board of India (Lis ng Obliga ons and Disclosure Requirements) Regula ons, 2015.
[Applicable from 1st December, 2015]
During the period under review the Company has generally complied with the provisions of the Act, Rules, Regula ons,
Guidelines, Standards, etc. men oned above.
We further report that
a) The Board of Directors of the Company is duly cons tuted with proper balance of Execu ve Directors, Non-
Execu ve Directors and Independent Directors. The changes in the composi on of the Board of Directors that
took place during the period under review were carried out in compliance with the provisions of the Act.
b) Adequate no ce is given to all directors to schedule the Board Mee ngs, agenda and detailed notes on agenda
were sent at least seven days in advance, and a system exists for seeking and obtaining further informa on and
clarifica ons on the agenda items before the mee ng and for meaningful par cipa on at the mee ng.
c) None of the directors in any mee ng dissented on any resolu on and hence there was no instance of recording
any dissen ng member’s view in the minutes.
We further report that subject to our observa on above there are adequate systems and processes in the Company
commensurate with the size and opera ons of the Company to monitor and ensure compliance with applicable laws,
rules, regula ons and guidelines.
We further report that during the audit period there are no specific events/ac ons which have any major bearing on
the Company’s affairs.
This report is to be read with my le er of even date which is annexed as Annexure – 1 which forms an integral part
of this report.
For MKB & Associates

Company Secretaries
Manoj Kumar Banthia

Partner
Date: 16th May, 2017 ACS no. 11470
Place: Kolkata COP no. 7596
38
Annexure – 1
To,
The Members,
My report of even date is to be read along with this le er.
1. It is management’s responsibility to iden fy the Laws, Rules, Regula ons, Guidelines and Direc ons which are
applicable to the Company depending upon the industry in which it operates and to comply and maintain those
records with same in le er and in spirit. My responsibility is to express an opinion on those records based on our
audit.
2. I have followed the audit prac ces and process as were appropriate to obtain reasonable assurance about the
correctness of the contents of the secretarial records. The verifica on was done on test basis to ensure that
correct facts are reflected in secretarial records. We believe that the process and prac ces I followed provide a
reasonable basis for our opinion.
3. I have not verified the correctness and appropriateness of financial records and Books of Accounts of the
Company.
4. Wherever required, I have obtained the Management’s Representa on about the compliance of Laws, Rules,
Regula ons, Guidelines and Direc ons and happening events, etc.
5. The Secretarial Audit Report is neither an assurance as to the future viability of the Company nor of the efficacy
or effec veness with which the management has conducted the affairs of the Company.

For MKB & Associates
Company Secretaries
Manoj Kumar Banthia

Partner
Date: 16th May, 2017 ACS no. 11470
Place: Kolkata COP no. 7596
Statutory Report
Financial Report
39
Annexure - V to the Directors' Report
MANAGERIAL REMUNERATION AND PARTICULARS OF EMPLOYEES
A) Details of every employee of the company as required under Rule 5(1) of Companies (Appointment and
Remunera on of Managerial Personnel) Rules, 2014 as amended vide No fica on dated 30th June, 2016 by
Ministry of Corporate Affairs for the year ended 31st March, 2017:
i) Percentage increase in remunera on of each director, CEO, CFO, CS or manager and ra o of the remunera on
of each Director to the median remunera on of the employees of the Company for the financial year
2016-17:
Name Designa on Percentage

increase (%) Ra o
Shri A. V. Agarwal Execu ve Chairman 25.32 34:1
Shri Manish Goenka Whole me Director 9.13 33:1
Shri P. S. Patwari Execu ve Director (CEO) 15.48 85:1
Shri M. B. S. Nair Whole me Director 18.41 51:1
Shri J. Godbole Non-Execu ve, Independent Director NA 1:1
Shri H. M. Marda Non-Execu ve, Independent Director 13.64 1:1
Shri U. G. Bhat Non-Execu ve, Independent Director NA 1:1
Shri S. Balasubramanian Non-Execu ve, Independent Director NA 1:1
Shri J. K. Khetawat Non-Execu ve, Independent Director NA 1:1
Smt. Richa Agarwal Non-Execu ve,(Woman Director) NA 1:1
Shri S. K. Khetan President (Finance) & CFO 13.87 42:1
Shri G. Saraf Vice President (Finance)& CS 9.95 24:1
ii) Percentage increase in the median remunera on of employees in the financial year: 24.49%
iii) Number of permanent employees on the rolls of company: 1486
iv) Explana on on:
Average percen le increase already made in the 13.59%
salaries of employees other than the managerial
personnel in the last financial year
Percen le increase in the managerial remunera on 13.89%
Jus fica on for increase in the managerial Reten on of talented technical and managerial
remunera on personnel as per Remunera on Policy of the Company.
Excep onal circumstances for increase in the N.A.
managerial remunera on, if any
v) Affirma on that the remunera on is as per the remunera on policy of the company: Yes, the remunera on
has been paid as per the remunera on policy of the company.
B) I) Details of every employee of the Company who as required under Rule 5(2) of Companies (Appointment
and Remunera on of Managerial Personnel )Rules, 2014 for the year ended 31st March, 2017 :
Sl. Name and Age Qualifica on Designa on Date of % of equity Remunera on Previous
No & Experience (in years) Joining share employment
held
Employment throughout the year
1. P. S. Patwari B.Com, FCA Execu ve Director 28.11.1994 NIL 1,71,19,080/- Hindusthan
(62 years) (37 years) (CEO) Motors Ltd.
2. Shri M.B.S. Nair B.Sc (Che) Paper Technology Whole Time 16.11.1999 0.0017 1,03,44,995/- Sri Venkatasa
(66 years) from IPT, Saharanpur Director Paper & Boards
(43 years) (Director Operations)
40
Annexure - V to the Directors' Report (Contd.)
II) Details of Top Ten employees of the company as required under Rule 5(2) of Companies (Appointment and
Remunera on of Managerial Personnel) Rules, 2014 as amended vide No fica on dated 30th June, 2016
by Ministry of Corporate Affairs for the year ended 31st March, 2017:
Sl. Name and Age Qualifica on Designa on Date of Joining % of equity Remunera on Previous employment
No & Experience share
(in years) held
(i) Employment throughout the year
1. Shri A.V. B.Com Execu ve Chairman 23.10.2000 0.0207 70,14,683/- Gulmohar Paper Ltd.
Agarwal (19 years)
(42 years)
2. Shri Manish MBA Whole Time 01.02.2000 0.1438 67,97,333/- Gulmohar Paper Ltd.
Goenka (19 years) Director
(43 years)
3. Shri P. S. B.Com, FCA Execu ve Director 28.11.1994 NIL 1,71,19,080/- Hindusthan Motors Ltd.
Patwari (37 years) (CEO)
(62 years)
4. Shri M.B.S. B.Sc (Che) Whole me Director 16.11.1999 0.0017 1,03,44,995/- Sri Venkatesa Paper &
Nair Paper Technology (Director- Opera ons) Boards.
(66 years) from IPT Saharanpur
(43 years)
5. Shri S.K.Jain B.Sc, MBA (R&A),PG Senior President 08.11.2005 NIL 94,94,707/- Khanna Paper Mills Ltd.

(61 years) in Paper Industry
(39 years)
6. Shri S. K. ACA, ACS, President (Finance) 11.10.1999 NIL 86,27,819/- Titagarh Industries Ltd.
Khetan (28 years) & C.F.O.
(52 years)
7. Shri G.Saraf FCS, LLB Vice President 30.03.1994 NIL 48,67,584/- Polar Latex Ltd.
(60 years) (42 years) (Finance) & Secretary
8. Shri Soumajit P.G. in Economics Senior G.M. 15.04.2014 NIL 37,35,280/- J K Paper Limited
Mukherjee (Marke ng & Sales)
(42 years)
9. Shri Anil Kr. B.Sc.PG Diploma Senior G.M. 15.10.2012 NIL 34,34,778/- J K Paper Limited
Statutory Report
Singh in Paper & Paper (Board Produc on)
(51 years) Technology (27 years)
10. Shri Mukesh B.Com (Hons) Senior G.M. (Finance) 17.04.1997 NIL 33,66,453/- Indian Oil Corpora on
Kumar ACA,C.S.(Inter) Ltd.
Agarwal (20 years)
(44 years)
Note: Shri P. S. Patwari, Shri M. B. S. Nair, Shri S. K. Jain, Shri Manish Goenka, Shri S. K. Khetan, Shri G. Saraf, Shri Soumajit
Mukherjee, Shri Mukesh Kumar Agarwal, Shri Anil Kr.Singh are not rela ve of any other Director, Key Managerial
Personnel and Manager of the company. Shri A. V. Agarwal is the husband of Smt.Richa Agarwal, Non-Execu ve,
Financial Report
Non-Independent Director of the Company.
41
Report on Corporate Governance
ANNEXURE - VI TO THE DIRECTORS' REPORT
1. COMPANY’S PHILOSOPHY ON CODE OF 2. BOARD OF DIRECTORS
GOVERNANCE
• Composi on
The Company’s philosophy on Corporate Governance
The Board of Directors (“Board”) comprises of
refers to a Professional System of management
10(Ten) Directors out of which 6 (Six) Directors are
leading to the efficient conduct of business. This
Non-Execu ve Directors.
comprises transparency and accountability with
the objec ve of serving the best interest of all the The Composi on of the Board of Directors is in
stakeholders – shareholders, customers, lenders, conformity with Regula on 17 of the Securi es and
employees, government and society. Exchange Board of India (Lis ng Obliga ons and
Disclosure Requirements) Regula ons, 2015.
The composi on and category of Board of Directors and other details are as under:
Sl Name of the DIN Execu ve/ No. of A endance No. of No. of membership/
No Director Independent/ Board at previous outside chairmanship in other
Non execu ve Mee ngs AGM on Director-ship Board/ Commi ee
a ended 10.08. held in other
2016 Public Chairman Member
Limited
Companies
01 Mr. A. V. Agarwal 00149717 Chairman, 4 Yes 3 - -
Execu ve
02 Mr. Manish Goenka 00363093 Execu ve 4 Yes 2 - -
03 Mr. P. S. Patwari 00363356 Execu ve 4 Yes 1 - -
04 Mr. U. G. Bhat 00353361 Non-Execu ve, 4 Yes 2 - -
Independent
05 Mr. J. Godbole 00056830 Non-Execu ve, 4 Yes 8 3 5
Independent
06 Mr. H. M. Marda 00855466 Non-Execu ve, 4 Yes 8 2 1
Independent
07 Mr. S. 02849971 Non-Execu ve, 3 No * 8 2 7
Balasubramanian Independent
08 Mr. J.K Khetawat 00920819 Non-Execu ve, 4 Yes 3 - -
Independent
09 Mr. M.B.S. Nair 03086056 Execu ve 3 Yes - - -
10 Mrs.Richa Agarwal 01505726 Non-Execu ve 4 Yes - - -
* Mr. S. Balasubramanian could not a end Annual General Mee ng held on 10th August, 2016 due to
preoccupa on.
3. NUMBER OF BOARD MEETINGS CONDUCTED 4. DISCLOSURE OF RELATIONSHIP BETWEEN

DURING THE YEAR DIRECTORS INTER-SE
During the year Four Board Mee ngs were held on Mrs. Richa Agarwal, Non-Execu ve Director of the
24th May, 2016, 10th August, 2016, 26th October, Company is wife of Mr. Aditya Vardhan Agarwal,
2016, and 31st January, 2017. Execu ve Chairman of the Company.
42
Report on Corporate Governance (Contd.)
5. INFORMATION PLACED BEFORE THE BOARD OF O. Non-compliance of any regulatory, statutory or
DIRECTORS lis ng requirements and shareholders service
As required under the Regula on 17(7) read with such as non-payment of dividend, delay in
Part – A of Schedule-II of SEBI (Lis ng Obliga ons share transfer etc.
and Disclosure Requirements) Regula ons, 2015 6. CODE OF CONDUCT
the informa ons which were placed before the
Board are as follows: The Board has framed Code of Conduct for the
Company. The Board designated the Execu ve
A. Annual Opera ng Plans and Budgets and any Director as Chief Execu ve Officer (CEO) and
updates. President (Finance) as Chief Financial Officer (CFO)
B. Capital Budgets and any updates. for the purpose of Corporate Governance. The
C. Quarterly results for the listed en ty and its Company Secretary is the Compliance Officer.
opera ng divisions or business segments. As per the provision of Regula on 17(8) read with
D. Minutes of Mee ngs of Audit Commi ee and Part-B of Schedule II, a cer ficate is also annexed
other Commi ees of the Board of Directors. to this Report by C.E.O. & C.F.O. that all members
of the Board, its Commi ee members and all
E. The Informa on on recruitment and
employees working at level of Execu ve and above
remunera on of Senior Officers just below
including Senior Management Personnel have
the level of Board of Directors, including
affirmed compliance with the Code of Conduct of
appointment or removal of Chief Financial
the Company for the current year.
Officer and the Company Secretary.
Code for preven on of Insider-Trading prac ces
F. Show cause, demand, prosecu on no ces and

and Fair Disclosures
penalty no ces, which are materially important.
G. Fatal or serious accidents, dangerous As per SEBI (Prohibi on of Insider Trading)
occurrences, any material effluent or pollu on Regula ons 2015, the Company Secretary is the
problems. Compliance Officer and is responsible for se ng
forth policies, procedures, monitoring adherence
H. Any material default in financial obliga ons to the rules for the preserva on of price sensi ve
to and by the listed en ty, or substan al non- informa on, preclearance of trade, monitoring of
payment for goods sold by the listed en ty. trades and implementa on of the Code of Conduct
I. Any issue, which involves possible public or for trading in Company’s securi es under the overall
product liability claims of substan al nature. supervision of the Board.
J. Details of any joint venture or collabora on
Statutory Report
Further in terms of Amended Regula on, 2015 of
agreement. SEBI vide its No fica on No. LAD-NRO/GN/2014-
K. Transac ons that involve substan al payment 15/21/85 dated 15.01.2015 the Company also
towards goodwill, brand equity, or intellectual adopted a Code of Conduct for Preven on of Insider
property. Trading 2015 under SEBI (Prohibi on of Insider
Trading) Regula on, 2015 as well as a Code of
L. Significant labour problems and their proposed
Corporate Fair Disclosures Prac ces. All the Directors
solu ons. Any significant development in
on the Board, Officers, designated employees at
Human Resources/Industrial Rela ons front like
Senior Management and connected persons at all
signing of Wage Agreement, implementa on of
loca ons who could be privy to unpublished price
Voluntary Re rement Scheme etc.
sensi ve informa on of the Company are governed
Financial Report
M. Sale of investments, subsidiaries, assets which by this Code. This amended code was approved by
are material in nature and not in normal course the Board of Directors in their mee ng held on 27th
of business. January, 2015.
N. Quarterly details of foreign exchange exposures The Code of Corporate Fair Disclosures Prac ces is
and the steps taken by management to limit also displayed on the Website of the Company as:
the risks of adverse exchange rate movement,
if material. Website: www.emamipaper.in
43
7. NUMBER OF SHARES AND CONVERTIBLE INSTRUMENTS HELD BY THE NON-EXECUTIVE DIRECTORS AS ON
MARCH, 31, 2017.
Sl. No Name of Directors Category No. of Equity Shares

01 Mr. U. G. Bhat Non-Execu ve, Independent NIL
02 Mr. J. Godbole Non-Execu ve, Independent NIL
03 Mr. H. M. Marda Non-Execu ve, Independent 2150
04 Mr. S. Balasubramanian Non-Execu ve, Independent NIL
05 Mr. J. K. Khetawat Non-Execu ve, Independent NIL
06 Mrs. Richa Agarwal Non-Execu ve, Promoter 1500
8. SHIFTING OF REGISTERED OFFICE 177 of the Companies Act, 2013 and as per the
The Registered Office of the Company has been provisions of Regula on 18(3) read with Schedule-
shi ed from 687, Anandapur, E. M. Bypass, Kolkata II, Part-C of SEBI (Lis ng Obliga ons and Disclosure
-700107 to ACROPOLIS, Unit -1, 15th Floor, 1858/1 Requirements) Regula ons, 2015, which shall inter
Rajdanga Main Road, Kolkata -700107 w.e.f 1st alia include:
February, 2017. 1. Oversight of the listed en ty’s financial
A Public No ce regarding the shi ing of the repor ng process and the disclosure of its
Registered Office was published in Business financial informa on to ensure that the financial
Standard (English Newspaper) and Ekdin (Bengali statement is correct, sufficient and credible;
Newspaper) on 8th February, 2017 and the same 2. Recommenda on for appointment, remunera-
has also been uploaded in the website of the on and terms of appointment of auditors of
Company. the listed en ty;
9. FAMILIARIZATION PROGRAM FOR INDEPENDENT 3. Approval of payment to statutory auditors for
DIRECTORS AND FACTORY VISIT CUM AWARENESS any other services rendered by the statutory
PROGRAM AT BALASORE PLANT. auditors;
The Company has adopted familiariza on 4. Reviewing, with the management, the annual
programs for the Independent Directors by way financial statements and auditor’s report
of Presenta ons at the quarterly Board Mee ng thereon before submission to the board for
which covers their roles, rights, responsibili es approval, with par cular reference to:
in the Company and also visit of the Plants to see a) Ma ers required to be included in the
the opera ons in which the Company operates. director’s responsibility statement to be
Involvement of the experts is also made for be er included in the board’s report in terms of
awareness and training of all the Directors. Factory clause (c) of sub-sec on (3) of Sec on 134
Visit is also organized from me to me. of the Companies Act, 2013;
Such Familiariza on Programs are disclosed in b) Changes, if any, in accoun ng policies and
the following weblink: h p://www.emamipaper. prac ces and reasons for the same;
i n / d o w n l o a d s / d e ta i l s _ o f _ fa m i l i a r i za o n _
c) Major accoun ng entries involving
programme_29112015.pdf.
es mates based on the exercise of
10. AUDIT COMMITTEE judgment by management;
The Audit Commi ee presently consists of Mr. d) Significant adjustments made in the
J. Godbole, as Chairman, Mr. H. M. Marda, Mr.J. financial statements arising out of audit
K. Khetawat and Mr. S. Balasubramanian as findings;
other members. All of them are Non-Execu ve
e) Compliance with lis ng and other
Independent Directors.
legal requirements rela ng to financial
a) Brief Descrip on of Terms of Reference of the statements;
Audit Commi ee:
f) Disclosure of any Related Party
A. The Audit Commi ee shall act in accordance with Transac ons;
the terms of reference specified under Sec on
44
g) Modified opinion(s) in the dra audit 17. To look into the reasons for substan al defaults
report; in the payment to the depositors, debenture
5. Reviewing with the management, the quarterly holders, shareholders (in case of non-payment
financial statements before submission to the of declared dividends) and creditors;
Board for approval; 18. To review the func oning of the whistle blower
6. Reviewing with the management, the state- mechanism;
ment of users/applica on of funds raised 19. Approval of appointment of Chief Financial
through an issue (public issue, rights issue, Officer a er assessing the qualifica ons,
preferen al issue, etc.), the statement of funds experience and background, etc. of candidate;
u lized for purposes other than those stated in 20. Carrying out any other func on as is men oned
the offer document / prospectus/ no ce and in the terms of reference of audit commi ee.
the report submi ed by the monitoring agency B. The audit commi ee shall mandatorily review the
monitoring the u liza on of proceeds of a following informa on:
public or rights issue, and making appropriate
recommenda ons to the board to take up steps 1) Management Discussion and Analysis of
in this ma er; financial condi on and results of opera ons;
2) Statement of significant Related Party
7. Reviewing and monitoring the auditor’s
Transac ons (as defined by the audit
independence and performance, and
commi ee), submi ed by management;
effec veness of audit process;
3) Management le ers / le ers of internal control
8. Approval or any subsequent modifica on of
weaknesses issued by the statutory auditors;
transac ons of the listed en ty with Related
Par es; 4) Internal Audit Reports rela ng to internal

control weaknesses; and
9. Scru ny of inter-corporate loans and
investments; 5) The appointment, removal and terms of
remunera on of the Chief internal auditor shall
10. Valua on of undertakings or assets of the listed be subject to review by the audit commi ee.
en ty, wherever it is necessary;
6) Statement of devia ons:
11. Evalua on of interna onal financial controls
(a) Quarterly statement of devia on(s)
and risk management systems;
including report of monitoring agency, if
12. Reviewing, with the management, performance applicable, submi ed to stock exchange(s)
of statutory and internal auditors, adequacy of in terms of Regula on 32(1).
the internal control systems; (b) Annual Statement of funds u lized for
13. Reviewing the adequacy of internal audit purposes other than those stated in the
Statutory Report
func on, if any, including the structure of offer document / prospectus / no ce in
the internal audit department, staffing and terms of Regula on 32(7).
seniority of the official heading the department, b) Composi on, Name of Members and Chairman
repor ng structure coverage and frequency of
internal audit; The Audit Commi ee presently consists with the
following Non-Execu ve Independent Director as
14. Discussion with internal auditors of any members:
significant findings and follow up there on;
Mr. J. Godbole Chairman
15. Reviewing the findings of any internal
inves ga ons by the internal auditors into Mr. H. M. Marda Member
ma ers where there is suspected fraud or Mr. J. K. Khetawat Member
Financial Report
irregularity or a failure of internal control Mr. S. Balasubramanian Member

systems of a material nature and repor ng the
The composi on of the Audit Commi ee meets
ma er to the Board;
the requirement of sec on 177 of the Companies
16. Discussion with Statutory Auditors before the Act, 2013 and Regula on 18(1) of SEBI (Lis ng
audit commences, about the nature and scope Obliga ons and Disclosure Requirements)
of audit as well as post-audit discussion to Regula ons, 2015. Shri G. Saraf, Company Secretary
ascertain any area of concern; acts as the Secretary to the Commi ee.
45
The a endance of each member director at the Audit Commi ee Mee ng held during the Financial Year 2016-
17 is furnished below:
Sl. No. Name of Director Posi on Audit Commi ee Mee ng

Held A ended
01. Mr. J. Godbole Chairman 4 4
Non-Execu ve Independent Director
02. Mr. H. M. Marda Member 4 4
03. Mr. J. K. Khetawat Member 4 4
04. Mr. S. Balasubramanian Member 4 3
The above mee ngs were held on 24th May, 2016, 10th August, 2016, 26th October, 2016 and 31st January,
2017.
The Internal Auditors are permanent invitees of the 2) Formula on of criteria for evalua on of
Audit Commi ee. The Statutory Auditors are also performance of independent directors and
invited to a end the mee ngs. the board of directors;
Mr. J. Godbole, Chairman of the Audit Commi ee 3) Devising a policy on diversity of board of
was present in the Annual General Mee ng of the directors;
Company held on 10th August, 2016. 4) Iden fying persons who are qualified
to become directors and who may be
11. NOMINATION AND REMUNERATION COMMITTEE appointed in senior management in
& POLICY accordance with the criteria laid down, and
In compliance of sec on 178(3) of the Companies recommend to the Board of Directors their
Act, 2013 a Nomina on and Remunera on appointment and removal.
Commi ee for appointment and remunera on 5) Whether to extend or con nue the term of
of Execu ve Director and other Key Managerial appointment of the independent director,
Personnel (KMPs) and Senior Managerial Personnel on the basis of the report of performance
(SMPs) was cons tuted on 25th April, 2014. evalua on of independent directors.
b) Composi on, Name of Members and Chairman
a. Brief Descrip on of Terms of Reference of
Nomina on and Remunera on Commi ee The Nomina on and Remunera on Commi ee
as per Regula on 19(4) read with Part-D of presently consists with the following Non-
Schedule-II of SEBI (Lis ng Obliga ons and Execu ve Independent Directors:
Disclosure Requirements) Regula ons, 2015
Mr. J. Godbole Chairman
are as under:
Mr. H. M. Marda Member
1) Formula on of the criteria for determining
Mr. J. K. Khetawat Member
qualifica ons, posi ve a ributes
and independence of a director and Mr. S. Balasubramanian Member
recommend to the Board of Directors a The composi on of Nomina on and Remu-
policy rela ng to, the remunera on of the nera on Commi ee meets the requirement of
Directors, Key Managerial Personnel and Regula on 19(1) of SEBI (Lis ng Obliga ons and
other employees; Disclosure Requirements) Regula ons, 2015.
46
c. Mee ng and a endance during the year
The a endance of each member director at the Remunera on Commi ee Mee ng held during the Financial
Year 2016-17 is furnished below:
Sl. Name of Director Posi on Remunera on Commi ee Mee ng

No. Held A ended
01. Mr. J. Godbole Chairman 1 1
02. Mr. H. M. Marda Member 1 1
03. Mr. J. K. Khetawat Member 1 1
04. Mr. S. Balasubramanian Member 1 1
During the year one mee ng of the Nomina on and Remunera on Commi ee was held on 31st January,
2017.
d. Performance Evalua on criteria for independent revised as per the Guidance Note on Board
directors. Evalua on as issued by the Securi es Exchange
Board of India vide Circular No:SEBI/H.O./CFD/
The Company had adopted a Performance
CMD/CIR/P/2017/004 DATED 5th January, 2017
Evalua on Policy at the Mee ng of the Board of
and approved by the Board of Directors at their

Directors held on 27th January, 2015.
Mee ng held on 31st January, 2017.
The Performance Evalua on Policy was further
The revised Criteria for Performance Evalua on of the Independent Directors as per the abovemen oned
Policy are as follows:
Sl. Evalua on Criteria

No
I. a) Knowledge and Competency: How the person fares across different competencies as iden fied
for effec ve func oning of the en ty and the Board
b) Whether the person has sufficient understanding and knowledge of the en ty and the sector in
which it operates
Statutory Report
II. Fulfillment of Func ons: Whether the person understands and fulfills the func ons to him/her as
assigned by the Board and the law
III. Ability to func on as a team: Whether the person is able to func on as an effec ve team- member
IV. Ini a ve: Whether the person ac vely takes ini a ve with respect to various areas
V. Availability and a endance: Whether the person is available for mee ngs of the Board and
a ends the mee ng regularly and mely, without delay
VI. Commitment: Whether the person is adequately commi ed to the Board and the en ty
VII. Contribu on: Whether the person contributed effec vely to the en ty and in the Board mee ngs
VIII. Integrity: Whether the person demonstrates highest level of integrity (including conflict of
Financial Report
interest disclosures, maintenance of confiden ality, etc.)

IX. Independence: Whether the person is independent from the Company and other directors and
there is no conflict of Interest
X. Independent views and judgement: Whether the person exercises his/ her own judgement and
voices opinion freely
47
e) Policy for Selec on and Appointment of and its Commi ees. The said si ng fees paid to the
Directors and their Remunera on: Non-execu ve Directors are fixed by the Board and
The Nomina on and Remunera on Commi ee reviewed from me to me.
has adopted a Policy approved by the Board Remunera on to Execu ve Directors, Key Mana-
which inter alia, deals with the manner of gerial Personnel (KMPs) & Senior Managerial
selec on of Board of Directors, other KMPs and Personnel (SMPs) :
SMPs as under: The Company has a credible and transparent
i. The objec ve is to have a Board with diverse framework in determining and accoun ng for the
background and experience in business, remunera on of the Managing Director / Whole
government, academics, technology and in Time Directors (MD/WTDs), Execu ve Directors
areas that are relevant for the Company’s (EDs), Key Managerial Personnel(s) (KMPs) and
opera ons. Senior Managerial Personnel(s) (SMPs). Their
ii. In evalua ng the suitability of individual remunera on are governed by the external
Board members, the Commi ee takes into compe ve environment, track record, poten al,
account many factors, including general individual performance and performance of the
understanding of the Company’s business company as well as industry standards.
dynamics, global business and social The remunera on determined for Execu ve
perspec ve, educa onal and professional Directors are approved by the Nomina on and
background and personal achievements. Remunera on Commi ee, Board of Directors
iii. Director should possess the highest and members at the next general mee ng of the
personal and professional ethics, integrity Company and by the Central Government in case
and values. They should be able to balance such appointment is at variance to the condi ons
the legi mate interest and concerns of all specified in Schedule V. As a policy, the Execu ve
the Company’s stakeholders in arriving at Directors are neither paid si ng fee nor any
decisions. commission.
iv. In addi on, Directors must be willing The remunera on for other KMPs, SMPs and Unit
to devote sufficient me and energy in heads is determined by the Execu ve Director of
carrying out their du es and responsibili es the company based on their performance and other
effec vely relevant factors.
Remunera on to Non-Execu ve Directors: The Nomina on and Remunera on Commi ee
The Non-execu ve Directors of the Company are ensure that the candidate iden fied for appointment
paid remunera on by way of si ng fees only for as a Director is not disqualified for appointment
a ending the mee ngs of the Board of Directors under sec on 164 of the Companies Act, 2013.
f) Remunera on paid to the Directors of the company for the year ended 31-03-2017: (Amount in `)
Name of Directors Salary & Allowances Other Provident Total Service Contract No ce
(Fixed component)* Perquisites ** Fund Period
Mr. A. V. Agarwal 60,10,080.00 2,84,603.00 7,20,000.00 70,14,683.00 3 Years 3 Months
(w.e.f. 08.11.2015)
Mr. Manish Goenka 60,10,080.00 67,253.00 7,20,000.00 67,97,333.00 3 Years 3 Months
(w.e.f. 01.07.2015)
Mr. P. S. Patwari 1,35,94,800.00 20,49,000.00 14,75,280.00 1,71,19,080.00 3 Years 3 Months
(w.e.f. 01.04.2017)
Mr. M. B. S. Nair 86,06,422.00 10,16,910.00 7,21,663.00 1,03,44,995.00 3 Years 3 Months
(w.e.f. 25.04.2017)
Total : 34,22,13,812.00 34,17,766.00 36,36,943.00 4,12,76,091.00
* Fixed component includes Basic Salary and Fixed allowances
**Other Perquisites include Leave Travel Assistance, Reimbursement of Medical Expenses, Cost of Accommoda on including Rent,
Maintenance, Electricity etc.
Note: i. None of the Directors were paid performance linked incen ves. ii. Severance Fees - There is no such fees paid to any of the Director.
48
Remunera on to Non-Execu ve Directors: The various broad criteria applicable for the
Performance Evalua on of the Board as per the new
i. They are paid only si ng fees for a ending Board/
Performance Evalua on Policy are as follows :
Commi ee mee ngs.
I. Structure of the Board
ii. Directors who are in whole me employment of the
Company, are not paid any si ng fees. II. Mee ngs of the Board
III. Func ons of the Board
Si ng fees paid to each of them for a ending
Board/Commi ee Mee ngs are as follows: IV. Board and Management
V. Professional Development
Name of the Directors Total Rupees
In respect of each of the evalua on factors,
Mr. J. Godbole 2,20,000 various aspects covering general parameters in
Mr. H. M. Marda 2,50,000 respect of all the directors and its commi ees have
Mr. U. G. Bhat 1,15,000 been considered and set out in the Performance
Evalua on Policy in accordance with their respec ve
Mr. S. Balasubramanian 1,50,000
func ons and du es.
Mr. J. K. Khetawat 2,05,000
Self-appraisal by the directors, based on their
Mrs. Richa Agarwal 1,30,000 delegated specific responsibili es has also been
Total : 10,70,000 carried out.
Note: The Non-Execu ve Director have been paid the Further, the Independent directors have evaluated
above men oned si ng fees and reimbursement of the performance of Execu ve Chairman, Non-

expenses only. Independent Directors and the Board of Directors
i) During the year, the Company has paid as a whole at a separate mee ng held on
Rs.18,25,343/- as professional fees to M/s SPB 31st January, 2017 as per requirement of Regula on
Projects & Consultancy Ltd; a Company in which 25 (3) & (4) of SEBI (Lis ng Obliga ons and Disclosure
Mr. U. G. Bhat is interested as Deputy Managing Requirements) Regula ons, 2015.
Director. Nomina on and Remunera on Commi ee had also
ii) Except these, there was no other pecuniary evaluated performance of each of the Directors
rela onship or transac ons of the Non- based on the aforesaid evalua on factors, in their
Execu ve Directors vis-à-vis the Company. mee ng held on 31st January, 2017.
12. PERFORMANCE EVALUATION OF BOARD : 13. STAKEHOLDERS’ RELATIONSHIP COMMITTEE :
Statutory Report
Pursuant to the provisions of the Companies The Stakeholders’ Rela onship Commi ee was
Act, 2013 and as per requirement of Regula on cons tuted on 25th April, 2014, as per requirement
17(10) of SEBI (Lis ng Obliga ons and Disclosure of Sec on 178(5) of the Companies Act, 2013 and
Requirements) Regula ons, 2015, the Board has entrusted the responsibili es to deal with ma ers
adopted the criteria for evalua on of its own rela ng to transfers / transmissions of shares and
performance, its commi ees and individual monitor redressal of complaints from shareholders
directors and carried out the required annual with respect to transfer of shares, non-receipt of
evalua on. Annual Report, non-receipt of Dividend etc.
The Evalu on Criteria was further revised as per the The Stakeholders’ Rela onship Commi ee was
further re-cons tuted on 26th October, 2016, when
Financial Report
Guidance Note on Board Evalua on as issued by

the Securi es Exchange Board of India vide Circular Mr. J. Godbole resigned from the Chairmanship of
No.: SEBI/H.O./CFD/CMD/CIR/P/2017/004 DATED the Commi ee.
5th January, 2017 and approved by the Board of
Directors at their Mee ng held on 31st January,
2017.
49
The Commi ee presently consists with the following Therefore, it is the core corporate responsibility
members:- of EPML to prac ce its corporate values through
its commitment to grow in a socially and
a. Mr. H. M. Marda Chairman environmentally responsible way, while mee ng
b. Mr. P. S. Patwari Member the interests of its stakeholders.
c. Mr. Manish Goenka Member The Commi ee presently consist the following
Mr. G. Saraf, Vice President (Finance) & Secretary is members:
the Compliance Officer of the Company. a. Mr. A.V. Agarwal Chairman
During the year one mee ng of the Stakeholders b. Mr. J. Godbole Member
Rela onship Commi ee was held on 31st January,
c. Mr. P. S. Patwari Member
2017.
d. Mr. Manish Goenka Member
There was one complaint received from one of the
Shareholders so far which have been resolved and e. Mr. H. M. Marda Member
no complaint remains pending as on date. f. Mrs. Richa Agarwal Member
14. RISK MANAGEMENT SYSTEM During the year two mee ngs of the Corporate
Social Responsibility Commi ee were on 24th May,
The monitoring of Risk Management con nued
2016 and 26th October, 2016.
under Audit Commi ee and Board of Directors.
Presenta on of progress and implementa on status 17. FINANCE COMMITTEE:
of mi ga on plans were made by the Execu ve
The Finance Commi ee was cons tuted by the
Management Team periodically.
Board in its mee ng held on 6th May, 2015 to deal
15. PREFERENCE SHARE COMMITTEE: with expedi ng financial decisions including the
transac ons and dealing with various Banks for long
The Preference Share Commi ee has been
term and short term financial requirements of the
discon nued w.e.f.24th May, 2016 as the purpose
Company.
of the Commi ee for which it was formed has been
accomplished. The Commi ee presently consist the following
members:
16. CORPORATE SOCIAL RESPONSIBILITIES COMMITTEE:
As per Sec on 135 of the Companies Act, 2013 a. Mr. H. M. Marda Chairman
the Commi ee was cons tuted on 21st January, b. Mr.J. K. Khetawat Member
2014 to monitor and review the C.S.R. ac vi es c. Mr. Manish Goenka Member
of the company from me to me. Corporate
Social Responsibility is strongly connected with the d. Mr. P. S. Patwari Member
principles of sustainability; an organiza on should During the year one mee ng of the Finance
make decisions based not only on financial factors, Commi ee was held on 11th Janauary, 2017.
but also on the social and environmental aspects.
GENERAL BODY MEETING :

Loca on and me where the last three Annual General Mee ngs were held:
Financial Year Venue Date Time

2013 – 14 687, Anandapur, E.M. Bypass, Kolkata – 700 107 11.08.2014 10.00 a.m.
2014 – 15 -do- 11.08.2015 11.00 a.m.
2015 - 16 -do- 10.08.2016 11.00 a.m.
Whether special Resolu ons were passed in previous three AGMs: Yes
50
The following Special Resolu ons were passed in 18. GREEN INITIATIVES DRIVE BY THE MINISTRY OF
previous three AGMs: CORPORATE AFFAIRS, GOVERNMENT OF INDIA
• YEAR 2015-16: The Company, as a responsible corporate ci zen
welcomes and supports the green ini a ves taken
To approve varia on of the remunera on of Mr. M.
by the Ministry of Corporate Affairs, Government
B. S. Nair, (DIN.03086056) as Whole-Time Director
of India by circular, enabling electronic delivery
designated as Director (Opera ons) w.e.f 18th
of documents to the shareholders. The Company
November 2015 to 25th April,2017
sends the communica on to the shareholders
• YEAR 2014-15: through electronic mode at their e-mail addresses
1) Approval for re-appointment of Mr. A. V. registered with the Depository/Registrar & Share
Agarwal, as Whole Time Director designated Transfer Agent and all such communica ons are
as Execu ve Chairman for a period of 3 years immediately uploaded on Company’s website also.
including payment of remunera on for that 19. SUBSIDIARY COMPANY
period. The Company does not have any subsidiary
2) Approval for re-appointment of Mr. Manish Company.
Goenka as Whole Time Director for a period of 20. DISCLOSURES
3 years including payment of remunera on for
that period. Related party transac ons:
The Company has not entered into any transac on
• YEAR 2013-14:
of material nature with the promoters, directors or
1) Approval for appointment of Mr. M. B. S. Nair the management, the subsidiaries or rela ves, etc.

as Whole-Time Director, designated as Director that may have poten al conflict with the interest of
(Opera ons) for a period of 3 years including the Company.
payment of remunera on for that period.
Compliances by the Company:
2) Approval for re-appointment of Mr. P. S. Patwari
There have been no cases of non-compliance by
as Execu ve Director for a further period of 3
the Company or penal es/ strictures imposed on
years, including payment of remunera on
the Company by the Stock Exchanges or SEBI or any
for that period, subject to the approval of the
other authority on any ma er rela ng to capital
Central Government.
markets during the last three years.
3) Increase in the Share Capital of the Company Accoun ng treatment in prepara on of financial
and Altera on of Memorandum of Associa on statement:
of the Company.
Statutory Report
The Company has followed the applicable guidelines
4) Issue of 8% Cumula ve Redeemable Non- of Accoun ng Standards as specified under sec on
Conver ble Preference Shares of Rs.100/- each 133 of the Companies Act, 2013, read with Rule 7 of
to the Promoters on Preferen al basis. the Companies (Accounts) Rules, 2014.
5) Borrowing Powers of the Board of Directors 21. MANAGEMENT DISCUSSION & ANALYSIS REPORT
pursuant to Sec on 180(1)(c) of the Companies
This Annual Report contains a separate and detailed
Act, 2013.
Management Discussion and Analysis sec on.
6) Approval for Addi onal Mortgage and on
22. DETAILS OF APPOINTMENT/REAPPOINTMENT OF
Hypotheca on of the Assets of the Company
NON-EXECUTIVE/ INDEPENDENT DIRECTORS AND
pursuant to Sec on 180(1)(a) of the Companies
Financial Report
KEY MANAGERIAL PERSONNEL:

Act, 2013.
Mr. M. B. S. Nair will re re by rota on at the ensuing
7) Adop on of New Ar cles of Associa on of the Annual General Mee ng and being eligible, offer
Company containing regula on in conformity himself for re-appointment
with Companies Act, 2013.
Mrs. Richa Agarwal will re re by rota on at the
Whether Special Resolu ons passed last year ensuing Annual General Mee ng and being eligible,
through Postal Ballot – NO offer herself for re-appointment
51
The informa on pertaining to these Directors are as follows:
Name of Director Mr. M. B. S. Nair Mrs. Richa Agarwal

Age About 66 years About 40 years
Date of Appointment 25.04.2014 27.01.2015
Exper se in Specific Renowned paper technologist with rich Extensive experience in the area
Func onal areas and varied experience of 43 years in of Corporate Planning, Business
Paper Industry. He is the opera onal Development, Marke ng and Overall
head and unit in charge of Balasore Unit, Business Management.
varied experience in se ng up of paper
mill project.
Qualifica on Bsc(Che),Paper Technology from IPT, B.Com.
Saharanpur
Chairman/Director NIL Emami Centre for Crea vity Private Ltd
of other Companies.
Membership/ NIL NIL

Chairmanship in Other
Board/Commi ee
Equity Shares held in the 1000 1500
Company
CEO/CFO Cer fica on Mechanism for the Evalua on of Non-Execu ve

Directors:
The CEO and CFO cer fica on as required under
Regula on 17(8) read with Schedule-II, Part B of SEBI The role of Non-Execu ve Directors of the Company
(Lis ng Obliga ons and Disclosure Requirements) is important; the peer group comprising the
Regula ons, 2015 is enclosed at the end of the en re Board, except the Director being evaluated,
Report. evaluates his/her performance. On the basis of
such evalua on, it is decided as to whether his/her
22. COMPLIANCE REPORT
appointment should be extended or con nued.
The details of compliance with mandatory
Whistle Blower Policy:
requirements and adop on of the non-mandatory
requirements of this clause are given below: Any employee may report unethical a tude at the
work place without fear and reach the Chairman of
Audit Qualifica on:
the Audit Commi ee or alterna vely may report to
There is no Audit Qualifica on given in the Auditors’ the Head-HR.
Report.
Vigil Mechanism Policy:
Training of Board Members:
The Vigil Mechanism Policy was approved by the
All Board members are experienced and Board of Directors on 21st January, 2014:
professionals, acquainted with business knowledge,
• To provide for adequate safeguards against
obvia ng the need for formal training. However,
vic miza on of Employees and Directors who
with respect to Execu ve Directors, other KMPs and
avail of the mechanism and also provide for direct
SMPs the Company arranged need-based training
access to the chairperson of the Audit Commi ee
to help them discharge their responsibili es in the
or the Director nominated to play the role of Audit
most effec ve way.
Commi ee, as the case may be, in excep onal
cases.
52
• The existence of the mechanism will be appropriately the Company and was approved by the Board of
communicated within the organiza on a er its Directors in their mee ng held on 29th November,
establishments. 2015.
• In case of repeated frivolous complaints being filed This policy is framed for the purpose of archiving of
by a Director or an employee, the Audit Commi ee the documents which are hosted in the Company’s
or the Director nominated to play the role of Website in accordance with the provisions of SEBI
Audit Commi ee may take suitable ac on against (Lis ng Obliga ons and Disclosure Requirements)
the concerned Director or Employee including Regula ons, 2015.
reprimand.
Performance Evalua on Policy
• The Company encourages an open door policy
The Company had adopted a Performance Evalua-
where employees have access to the Head of the
on Policy which was approved by the Board
Business/Func on. Any Employee may report
of Directors at the Board Mee ng held on 27th
unethical a tude at the workplace without fear
January, 2015.
and reach the Chairman of the Audit Commi ee.
The Securi es and Board of India vide their Circular
Policy for Preserva on of Records/Documents of
No.: SEBI/H.O./CFD/CMD/CIR/P/2017/004 DATED
the Company:
5th January, 2017, issued a guidance Note on Board
The Company has adopted the policy for Preserva on Evalua on. The Company revised its Performance
of Records /Documents of the Company and was Evalua on Policy inline with the said Guidance note.
approved by the Board of Directors in their mee ng The Revised Performance Evalua on Policy was
held on 29th November, 2015. approved by the Board of Directors at their mee ng

The purpose of this policy is to provide guidance to held on 31st Jnauary, 2017
the execu ves working in the Company regarding Secretarial Audit:
the preserva on of the documents in accordance
with the provisions of the Companies Act, 2013 Secretarial Audit from an Independent Prac cing
and as mandated by the provisions of Regula on Company Secretary M/s. M. K. B. & Associates,
9 of Chapter III of SEBI (Lis ng Obliga ons and Company Secretary for the financial year ended 31st
Disclosure Requirements) Regula ons, 2015. March, 2017 has been completed and Secretarial
Audit for the year forms part of this Annual Report.
Policy for Determina on of Materiality of any
Events /Informa on: Shareholder’s Rights and Means of Communica on
The Company has adopted the policy for The quarterly, half-yearly and audited financial
Statutory Report
Determina on of Materiality of any Events/ results are generally published in The Economic
informa on of the Company and was approved by Times/Business Standard/The Times of India,
the Board of Directors in their mee ng held on 29th Kolkata (English) and The Dainik Statesman/
November, 2015. Ekdin/Ei-Samai (Bengali) and are also displayed on
company’s website www.emamipaper.in. Hence,
The purpose of this Policy is to determine these are not individually sent to the shareholders.
materiality of events and informa on based on
criteria specified under Clause (i) of Sub Regula on The Company make arrangements for display at its
(4) of Regula on 30 of the SEBI (Lis ng Obliga ons website all the ma ers required to be displayed
and Disclosure Requirements) Regula ons 2015 under the Companies Act, 2013 and Regula on 46
and to disclose of events / informa on to the Stock of SEBI (Lis ng Obliga ons and Disclosure Require-
Financial Report
Exchanges. The policy is available at the website of ments) Regula ons, 2015, which includes:
the Company i.e. www.emamipaper.in a) Details of its business;
Policy for Archiving of Documents which are b) Terms and condi ons of appointment of
hosted on the website of the Company: Independent Directors;
The Company has adopted the policy for Archiving c) Composi on of various commi ees of Board of
of Documents which are hosted on the website of Directors;
53
d) Code of conduct of Board of Directors and 22. Shareholders Informa on
senior management personnel; a) Unclaimed Dividend
e) Details of establishment of Vigil mechanism/ Unclaimed dividend for the year prior to and
Whistle Blower policy; including the financial year 2008-09 have been
f) Policy on dealing with Related Party transferred to the General Revenue Account
Transac ons; of the Central Government / the Investor
Educa on and Protec on Fund established by
g) Details of Familiariza on Programmes imparted
the Central Government (IEPF), as applicable.
to Independent Directors
Shareholders who have not encashed their
h) The email address for grievance redressal dividend warrants to financial year(s) up to
i) Contact informa on of the designated officials and including 2008-09 may claim such dividend
for assis ng and handling investor grievances; (transferred to the General Revenue Account)
j) Financial informa on including : from the Registrar of Companies, West Bengal,
Government of India, Nizam Palace, II MSO
i. No ce of mee ng of the Board of Directors Building, 2nd Floor, 234/4 A. J. C. Bose Road,
where Financial Results shall be discussed; Kolkata-700 020 by applying in the prescribed
ii. Financial Results, on conclusion of the form.
mee ng of the Board of Directors where The dividend for the undernoted years, if
financial results were approved. remaining unclaimed for 7 years, will be
iii. Complete copy of the annual report statutorily transferred by the Company to
including Balance Sheet, Profit and Loss I.E.P.F. in accordance with the schedule given
Account, Directors Report, Corporate below. Communica on has been sent by the
Governance Report etc; Company to the concerned Shareholders
advising them to write to the Company with
k) Shareholding Pa ern
respect to their unclaimed dividend. (A en on
Management’s Discussion and Analysis is drawn that the unclaimed dividend for the
Management’s Discussion and Analysis is a part of financial year 2009-10 is due for transfer to IEPF
Directors’ Report to the shareholders. on 02/09/2017).
Once unclaimed dividend is transferred to IEPF, no claim shall lie in respect thereof.
(` in Lacs)
Financial Dividend Last date of Payment Total Amount of Unclaimed Dividend Last date for transfer
year ID No. of dividend Dividend as on 31.03.2017 to I.E.P.F. on
2009-10 28th 28/08/2010 363.00 0.66 02/09/2017
2010-11 29th 09/09/2011 363.00 0.73 14/09/2018
2011-12 30th 11/09/2012 363.00 0.68 16/09/2019
2012-13 31st 11/09/2013 363.00 1.05 16/09/2020
2013-14 32nd 09/09/2014 363.00 0.89 14/09/2021
2014-15 33rd 09/09/2015 363.00 0.98 14/09/2022
2015-16 34th 08/09/2016 363.00 0.99 13/09/2023
Total : 2541.00 5.98
Details of Un-claimed Dividend is available in the Company’s website: www.emamipaper.in
b) Transfer of Unclaimed Shares to the Investor Fund Authority (Accoun ng, Audit, Transfer and
Protec on Fund (IEPF) Account as per Sec on Refund) Rules, 2016, subsequently modified on
124(6) of Companies Act, 2013 28th February, 2017.
The Ministry of Corporate Affairs vide its Circular In terms of the provisions of Sec on 124(6) of
No: G.S.R. 854(E) dated 5th September, 2016, the Companies Act, 2013 read with IEPF Rules,
no fied Investor Educa on and Protec on in addi on to the Unpaid or Unclaimed Dividend
54
required to be transferred by the Company ` 2/- each and at the rate of 8% on Preference
to the Investor Educa on and Protec on Share of ` 100/-. This is subject to the approval
Fund Authority , Equity shares rela ng to of the Members at the ensuing Annual General
such unclaimed/unpaid Dividend and lying Mee ng. The dividend, if approved by the
unpaid or unclaimed for 7 consecu ve years Members at the ensuing Annual General
or more were also required to be transferred Mee ng, will be paid / credited on and from
to the Investor Educa on and Protec on Fund 30th August, 2017.
Suspense Account (IEPF SUSPENSE ACCOUNT). g) Financial Calendar of the Company :
Accordingly the Company have transferred i. April to March
65,352 shares in respect of which Dividends
have not been claimed for the consecu ve ii. First Quarter Results – 2nd week of August
period of 7 years from 2008-2009. The Total iii. Half-yearly Results – 2nd week of November
amount of Unclaimed /unpaid Dividend iv. Third Quarter Results – 2nd week of
transferred to the IEPF suspense Account is February
` 1,30,704/- on 07/12/2016.
v. Results for the year ending 31st March – by
Each of the shareholders were sent personal May.
No ces at their latest Address on behalf of the
Company regarding transfer of their shares h) Lis ng of Equity Shares on Stock Exchange :
and also show how to claim those shares and The Company’s shares are listed at Bombay
unclaimed dividend amount. A Public No ce Stock Exchange only.
was also published in an English and Bengali The relevant Lis ng Fees for the year was paid.

Newspaper and the same was uploaded in the
Website of the Company along with the details i) Stock Code :
of those shareholders. The Bombay Stock Exchange Ltd.
In terms of Rule 6(3) of the Investor Educa on - 533208
and Fund Authority (Accoun ng Audit, Transfer The ISIN Number of Company’s Equity Shares
and Refund) Rules, 2016, the Statement (of face value ` 2/- per share) for NSDL & CDSL:
containing the details of Name, Folio No. and INE 830CO1026.
Number of Shares transferred to IEPF Suspense j) Stock Price Data :
Account is made available in our Website www.
emamipaper.in Market Price Data on the Bombay Stock
Exchange Ltd. (BSE), Mumbai is given hereunder:
b) 35th Annual General Mee ng :
Statutory Report
Market Price Data: High/Low in each month in the
Date : 14th August, 2017. Financial Year 2016-17:
Time : 11.00 a.m.
BSE
Venue : 687, Anandapur, E.M. Bypass,
Month High Price (`) Low Price (`)
Kolkata - 700107
April, 2016 48.00 42.10
c) Date of Book Closure : May, 2016 53.00 42.50
7th August, 2017 to 14th August, 2017 (both June,2016 62.80 47.50
days inclusive) for the shareholders holding July,2016 81.00 54.00
shares in physical form. The Shareholders August,2016 77.60 64.00
Financial Report
holding shares in demat form are eligible for September,2016 79.80 65.00
dividend for their holding as on 7th August,
October, 2016 120.40 73.25
2017.
November,2016 152.20 97.05
f) Dividend : December, 2016 128.90 106.60
The Board of Directors has recommended a January, 2017 131.55 107.15
dividend at the rate of 60% i.e. ` 1.20 (Rupees February, 2017 124.65 105.20
One & Twenty paise only) per Equity Share of March, 2017 122.50 100.05
55
k) Registrars & Transfer Agents (Physical & trading in the demat mode also. The shares
Demat) : received for transfers in physical form are first
Maheshwari Datama cs Pvt. Ltd. registered normally within three weeks (if
23, R. N. Mukherjee Road, 5th Floor in order and complete in all respects) and a
Kolkata - 700001 demat op on form is sent to the shareholders
for exercising the op on to receive the shares
Phone : 033-2243-5029/2248-2248
in demat form within 30 days of receipt unless
Fax : 033-2248 4787 the shareholders desires to get back the
Email : mdplc@yahoo.com physical share cer ficate. Therea er shares are
l) Share Transfer System : confirmed to the respec ve accounts.
The shares of the Company are eligible for
m) Distribu on of Shareholding and Shareholding Pa ern as on 31.03.2017 (Equity):
Category Number of shares held % of Shareholding

A. Promoters’ holding
Promoters
- Indian promoters Individuals 5657126 9.35
Corporate 39576160 65.41
- Foreign Promoters 125000 0.21
Sub-total 45358286 74.97
B. Non-promoters’ holding
1. Ins tu onal investors
a. Mutual Funds and UTI - -
b. Banks, financial ins tu ons and - -
Insurance companies
c. Central Govt./State Govt. 65352 0.11
d. Foreign Ins tu onal Investors - -
Sub-total 65352 0.11
2. Others
a. Private corporate bodies 7437274 12.30
b. Indian public 7601547 12.56
c. NRI / OCBs 13651 0.02
d. NBFCs registered with RBI - -
d. Others(Clearing Member) 22940 0.04
Sub-total 15075412 24.92
Grand-total 60499050 100.00
Analysis of Shareholding:
Category No. of Shareholders Number of Shares held % of Shareholding

1 – 50 731 11697 0.0193
51 – 100 327 30765 0.0508
101- 150 77 10498 0.0173
151 – 250 226 48296 0.0798
251 – 500 281 119008 0.1966
501 – 5000 445 732863 1.2113
5001 and above 142 59545923 98.4245
Total : 2229 60499050 100.00
56
n) Dematerialisa on of Shares 2. R. N. Tagore Road, Alambazar
99.38 percent of the Company’s Paid up Equity Kolkata –700 035, West Bengal
Share Capital are held in dematerialized form, Phone: (91)(33) 6622-3100, 6540-9610
out of which 88.32 percent are held with
Fax: (91)(033) 2564-6926
Na onal Securi es Depository Limited (NSDL)
and 16.16 percent are held with Central Email: gulmohar@emamipaper.in
Depository Services Limited(CDSL) as on 31st q) Address for correspondence:
March, 2017.
o) Outstanding GDRs/ADRs/Warrants or any Acropolis, Unit 1, 15th Floor
conver ble instruments, conversion date and
1858/1, Rajdanga Main Road, Kolkata -700107
likely impact on equity.
Phone No. (033) 66271301
The Company has not issued any of the
aforesaid instruments. Fax (033) 66271338
Email : emamipaper@emamipaper.in;
p) Plant Loca ons:
gsaraf@emamipaper.in
1. Vill – Balgopalpur
Website : www.emamipaper.in
Balasore – 756 020, Odisha
r) Electronic Clearing Service (ECS):
Phone : (91) (6782) 275723/26/79
Fax : (91) (6782) 275778 The Company is availing of the ECS facili es
to distribute dividend in main ci es to those
Email :balasore@emamipaper.in
members who have opted for it.

For and on behalf of the Board
Place : Kolkata A. V. AGARWAL

Date : 16th May, 2017 Execu ve Chairman
Statutory Report
Financial Report
57
COMPLIANCE CERTIFICATE
[Under Regula on 17(8) read with Part B of Schedule II of SEBI (Lis ng Obliga ons and Disclosure Requirements)
Regula on, 2015]
We P. S. Patwari, Execu ve Director, C.E.O. and S. K. Khetan, President (Finance), C.F.O. cer fy that:
1. We have reviewed financial statements and the cash flow statement for the year ended 31st March, 2017 to
the best of our knowledge and belief:
a. these statements do not contain any materially untrue statement or omit any material fact or contain
statements that might be misleading;
b. these statements together present a true and fair view of the Company’s affairs and are in compliance
with exis ng accoun ng standards, applicable laws and regula ons;
2. We also cer fy that based on our knowledge and belief, no transac ons entered into by the Company during
the year which are fraudulent, illegal or violate the Company’s code of conduct.
3. We accept responsibility for establishing and maintaining internal controls for financial repor ng and we
have evaluated the effec veness of internal control systems of the company pertaining to financial repor ng
and we have disclosed to the auditors and the audit commi ee, deficiencies in the design or opera on of
such internal controls, if any, of which we are aware and the steps we have taken or proposed to be taken to
rec fy these deficiencies.
4. We have indicated to the auditors and the Audit Commi ee :
a. significant changes in internal control during the year over financial repor ng during the year;
b. significant changes in the accoun ng policies during the year and that the same has been disclosed in
the notes to the financial statements; and
c. instances of significant fraud of which we have become aware and the involvement there in, if any, of
the management or an employee having a significant role in the company’s internal control system over
financial repor ng.
For Emami Paper Mills Limited
Place : Kolkata S. K. KHETAN P. S. PATWARI

Date : 16th May, 2017 President (Finance) (CFO) Execu ve Director (CEO)
DECLARATION BY CHIEF EXECUTIVE OFFICER (C.E.O.) OF THE COMPANY

[Under Regula on 34(3) read with Clause D of Schedule V of SEBI (Lis ng Obliga ons and Disclosure Requirements)
Regula ons, 2015]
As per requirement of Regula on 34(3) read with Clause D of Schedule V of SEBI (Lis ng Obliga ons and
Disclosure Requirements) Regula ons, 2015, I, P. S. Patwari, Execu ve Director and Chief Execu ve Officer
(C.E.O.) of Emami Paper Mills Limited hereby declare that:
All members of Board, its Commi ees and all employees working at level of Execu ve and above including Senior
Managerial Personnel have affirmed compliance with the Code of Conduct of the Company for the year 2016-17.
For Emami Paper Mills Limited
Place : Kolkata P. S. Patwari

Date : 16th May, 2017 Execu ve Director (Chief Execu ve Officer)
58
To,
The members of
We have examined the compliance of condi ons of Corporate Governance by Emami Paper Mills Limited for
the year ended on 31.03.2017 as s pulated in Securi es Exchange Board of India (Lis ng Obliga ons and
Disclosure Requirements) Regula ons,2015 (herein a er called as “SEBI (LODR) Regula ons,2015”).
The compliance of condi ons of Corporate Governance is the responsibility of the management. Our
examina on was limited to procedures and implementa on thereof, adopted by the company for ensuring
the compliance of the Corporate Governance. It is neither an audit nor an expression of opinion on the
financial statement of the company.
In our opinion, and to the best of our informa on and according to the explana on given to us, we cer fy that
the company has complied with the condi ons of corporate governance as s pulated in the above men oned
Regula ons.
We further state that such compliance is neither an assurance as to future viability of the Company nor of the
efficiency or effec veness with which the management has conducted the affairs of the Company.
For, S. K. AGRAWAL & CO.


Firm’s registra on number: 306033E
S. K. Agrawal
Place: Kolkata Partner
Date: 16th May, 2017 Membership No. 9067
Statutory Report
Financial Report
59
Independent Auditors' Report
To the Members of EMAMI PAPER MILLS LIMITED
Report on the Financial Statements
We have audited the accompanying financial statements of EMAMI PAPER MILLS LIMITED (“the Company”), which
comprise the Balance Sheet as at 31st March 2017, the Statement of Profit and Loss, the Cash Flow Statement for
the year then ended, and a summary of the significant accoun ng policies and other explanatory informa on, in
which are incorporated the returns for the year ended on that date audited by the branch auditors of the Company’s
branch at Gulmohar.
Management’s Responsibility for the Standalone Financial Statements
The Company’s Board of Directors is responsible for the ma ers stated in Sec on 134(5) of the Companies Act, 2013
(“the Act”) with respect to the prepara on of these financial statements that give a true and fair view of the financial
posi on, financial performance and cash flows of the Company in accordance with the accoun ng principles generally
accepted in India, including the Accoun ng Standards specified under Sec on 133 of the Act, read with relevant rules
issued thereunder. This responsibility also includes maintenance of adequate accoun ng records in accordance with
the provisions of the Act for safeguarding the assets of the Company and for preven ng and detec ng frauds and
other irregulari es; selec on and applica on of appropriate accoun ng policies; making judgments and es mates
that are reasonable and prudent; and design, implementa on and maintenance of adequate internal financial
controls, that were opera ng effec vely for ensuring the accuracy and completeness of the accoun ng records,
relevant to the prepara on and presenta on of the financial statements that give a true and fair view and are free
from material misstatement, whether due to fraud or error.
Auditor’s Responsibility
Our responsibility is to express an opinion on these financial statements based on our audit.
We have taken into account the provisions of the Act, the accoun ng and audi ng standards and ma ers which are
required to be included in the audit report under the provisions of the Act and the Rules made there under.
We conducted our audit in accordance with the Standards on Audi ng specified under Sec on 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 financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and the disclosures in the
financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of
the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk
assessments, the auditor considers internal financial control relevant to the Company’s prepara on of the 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 evalua ng the appropriateness of the accoun ng policies used and the reasonableness of the
accoun ng es mates made by the Company’s Directors, as well as evalua ng the overall presenta on of the financial
statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit
opinion on the financial statements.
Opinion
In our opinion and to the best of our informa on and according to the explana ons given to us, the aforesaid
financial statements give the informa on required by the Act in the manner so required and give a true and fair view
in conformity with the accoun ng principles generally accepted in India, of the state of affairs of the Company as at
31st March, 2017, and its profit and its cashflows for the year ended on that date.
Other Ma er
We did not audit the financial statements of Gulmohar branch included in these financial statements of the Company
whose financial statements reflect total assets of Rs. 2494.03 lacs as at 31st March, 2017 and total revenues of
Rs. 6199.72 lacs for the year ended on that date, as considered in these financial statements. The financial
statements of this branch have been audited by the branch auditor whose reports have been furnished to us, and
60
Independent Auditors' Report (Contd.)
our opinion in so far as it relates to the amounts and disclosures included in respect of the branch, is based solely on
the report of such branch auditor.
Our opinion is not modified in respect of this ma er.
Report on Other Legal and Regulatory Requirements
I. As required by the Companies (Auditor’s Report) Order, 2016 (“the Order”) issued by the Central Government
of India in terms of sub-sec on (11) of sec on 143 of the Act, we give in the Annexure A, a statement on the
ma ers specified in paragraphs 3 and 4 of the Order, to the extent applicable.
II. As required by Sec on 143 (3) of the Act, we report that:
a. We have sought and obtained all the informa on and explana ons which to the best of our knowledge and
belief were necessary for the purposes of our audit.
b. In our opinion, proper books of accounts as required by law have been kept by the Company so far as it
appears from our examina on of those books and proper returns adequate for the purpose of our audit
have been received from Gulmohar Branch not visited by us.
c. The reports on the accounts of the branch of the Company audited under Sec on 143 (8) of the Act by
branch auditor have been sent to us and have been properly dealt with by us in preparing this report.
d. The Balance Sheet, the Statement of Profit and Loss and Cash Flow Statement dealt with by this Report are
in agreement with the books of account.
e. In our opinion, the aforesaid financial statements comply with the Accoun ng Standards specified under
Sec on 133 of the Act, read with relevant rules issued thereunder.

f. On the basis of the wri en representa ons received from the Directors as on 31st March, 2017 taken on
record by the Board of Directors, none of the Directors is disqualified as on 31st March, 2017 from being
appointed as a director in terms of Sec on 164 (2) of the Act.
g. With respect to the adequacy of the internal financial controls over financial repor ng of the Company and
the opera ng effec veness of such controls, refer to our separate report in “Annexure B”;
h. With respect to the other ma ers to be included in the Auditor’s Report in accordance with the amended
Rule 11 of the Companies (Audit and Auditors) Rules, 2014, in our opinion and to the best of our informa on
and according to the explana ons given to us:
i. The Company has disclosed the impact of pending li ga ons on its Financial Posi on in its financial
statements (Refer Note No. 2.28 to the financial statements).
ii. The Company did not have any long-term contracts including deriva ve contracts for which there were
Statutory Report
any material foreseeable losses.
iii. There has been no delay in transferring amounts, which were required to be transferred to the Investor
Educa on and Protec on Fund by the Company.
iv. The Company has provided requisite disclosure in the financial statements as to holdings as well as
dealings in Specified Bank Notes during the period from 08th November, 2016 to 30th December,
2016. Based on audit procedures and on the basis of management representa on we report that the
disclosures are in accordance with the books of account maintained by the Company and as produced
to us by the Management. (Refer Note No. 2.45 to the financial statements).
Financial Report
For S. K. AGRAWAL & CO.

Firm’s Registra on Number- 306033E
S. K. Agrawal
Dated: 16th May, 2017 Membership No: 9067
61
Annexure - A to the Independent Auditors' Report
The Annexure referred to in our Independent Auditor's Report to the members of EMAMI PAPER MILLS LIMITED (the
Company’) on the financial statements for the year ended on 31st March 2017. We report that:
i. (a) The Company has maintained proper records showing full par culars, including quan ta ve details and
situa on of fixed assets.
(b) The Company has a regular programme of physical verifica on of its fixed assets by which fixed assets are
verified in a phased manner over a period of three years. In accordance with this programme, certain fixed
assets were verified during the year and no material discrepancies were no ced on such verifica on. In our
opinion, this periodicity of physical verifica on is reasonable having regard to the size of the Company and
the nature of its assets.
(c) According to informa on and explana ons given to us and on the basis of our examina on of the records
produced before us, tle deeds of five plots of leasehold land are in the process of being registered in the
name of the Company. The gross block and net block of said plots amounts to Rs 99.20 lacs and Rs. 94.10
lacs respec vely.
ii. According to the informa on and explana ons given to us the inventories have been physically verified during
the year by the management. In our opinion, the frequency of verifica on is reasonable and no material
discrepancies were no ced on physical verifica on.
iii. The Company has granted loans to two companies listed in the register maintained under sec on 189 of the
Companies Act, 2013.
(a) In our opinion, the terms and condi ons on which the loans had been granted to bodies corporate listed in
the register maintained under sec on 189 of the Act were not, prima facia, prejudicial to the interest of the
company.
(b) In the case of loans granted to the bodies corporate listed in the register maintained under sec on 189 of
the Act, the borrowers have been regular in the payment of principal and interest as s pulated.
(c) There are no overdue amounts for more than 90 days from the due date in respect of the loan granted to a
body corporate listed in the register maintained under sec on 189 of the Act.
iv In our opinion and according to the informa on and explana ons given to us, the Company has complied with
the provisions of sec ons 185 and 186 of the Companies Act, 2013 in respect of loans and investments made.
v. The Company has not accepted any deposits from the public during the year.
vi. We have broadly reviewed the books of account maintained by the Company pursuant to the rules prescribed by
the Central Government for maintenance of cost records under sec on 148 (1) of the Act, and are of the opinion
that prima facie the prescribed accounts and records have been made and maintained.
vii. According to the informa on and explana ons given to us in respect of statutory dues:
(a) The Company has been regular in deposi ng undisputed statutory dues, including Provident Fund, Employees
State Insurance, Income Tax, Service Tax, Sales Tax, Value Added Tax, duty of Custom, duty of Excise, Cess
and other statutory dues with the appropriate authori es during the year. According to the informa on and
explana ons given to us, no undisputed amounts payable in respect of the aforesaid dues were outstanding
as at 31st March, 2017 for a period of more than six months from the date they became payable.
(b) According to the informa on and explana ons given to us, there are no material dues of duty of customs
and service tax which have not been deposited with the appropriate authori es on account of any dispute.
However, according to informa on and explana ons given to us, the following dues of income tax, sales tax,
duty of excise and value added tax have not been deposited by the Company on account of disputes:
Par cular Financial Year to Forum where ma er Amount
which the ma er is pending (` In Lacs)
pertains
The Central Excise Act, 1994 & Service Tax 1994-95 ACCE 0.87
(Finance Act, 1994) 2002-03 to 2006-07 ACCE 1.10
2006-07 Tribunal 74.81
2006-07 Comm. Appeals 0.90
62
Annexure - A to the Independent Auditors' Report (Contd.)
Par cular Financial Year to Forum where ma er Amount
which the ma er is pending (` In Lacs)
pertains
Central Sales Tax 1993-94 Tribunal 16.26
2004-05 DCCT 0.53
2006-07 Tribunal 3.82
2012-13 to 2013-14 Comm. Appeals 74.01
Value Added Tax Act, (Orissa) 2006-07 Tribunal 0.59
Entry Tax Act (Orissa) 2006-07 Addl. Comm. 1.30
2007-08 Addl. Comm. 0.11
2008-09 Addl. Comm. 32.00
2009-10 Addl. Comm. 32.05
2010-11 Addl. Comm. 42.36
2012-13 to 2013-14 Addl. Comm. 205.71
Orissa Sales Tax 1989-90 High Court 0.79
ESIC 1996-97 ESIC Court 0.22
Entry Tax Act 2013-14 High Court 3.27
(West Bengal) 2014-15 High Court 5.75

2015-16 High Court 5.74
2016-17 High Court 5.26
viii. On the basis of records examined by us and the informa on and explana ons given to us, the company has not
defaulted in repayment of dues to Banks and financial ins tu ons.
ix. The Company did not raise any money by way of ini al public offer and further public offer (including debt
instrument). To the best of our knowledge and belief and according to the informa on and explana ons given to
us, term loans availed by the company were applied for the purpose for which the loans were obtained.
x. According to the informa on and explana ons given to us, no material fraud by the Company or on the Company
by its officers or employees has been no ced or reported during the course of our audit.
xi. According to the informa on and explana ons given to us, the Company has paid/provided for managerial
remunera ons in accordance with the requisite approvals mandated by the provisions of Sec 197 read with
Schedule V to the Act.
Statutory Report
xii. In our opinion and according to the informa on and explana ons given to us, the Company is not a Nidhi
company. Accordingly, paragraph 3(xii) of the Order is not applicable.
xiii. According to the informa on and explana ons given to us and based on our examina on of the records of the
Company, transac ons with the related par es are in compliance with sec ons 177 and 188 of the Act where
applicable and details of such transac ons have been disclosed in the financial statements as required by the
applicable accoun ng standards.
xiv. According to the informa on and explana ons given to us and based on our examina on of the records, the
Company has not made any preferen al allotment or private placement of shares or fully or partly conver ble
debentures during the year.
xv. According to the informa on and explana ons given to us and based on our examina on of the records of the
Company, the Company has not entered into non-cash transac ons with directors or persons connected with
Financial Report
them. Accordingly, paragraph 3(xv) of the Order is not applicable.

xvi. The Company is not required to be registered under sec on 45-IA of the Reserve Bank of India Act 1934.
S. K. Agrawal
63
Annexure - B to the Independent Auditors' Report
Report on the Internal Financial Controls under Clause (i) of Sub-sec on 3 of Sec on 143 of the Companies Act,
2013 (“the Act”)
We have audited the internal financial controls over financial repor ng of Emami Paper Mills Limited to the extent
records available with us in conjunc on with our audit of the financial statements of the company as of and for the
year ended 31st March, 2017.
Management’s Responsibility for Internal Financial Controls
The Company’s management is responsible for establishing and maintaining internal financial controls. These
responsibili es include the design, implementa on and maintenance of adequate internal financial controls that
were opera ng effec vely for ensuring the orderly and efficient conduct of its business, including adherence to
company’s policies, the safeguarding of its assets, the preven on and detec on of frauds and errors, the accuracy
and completeness of the accoun ng records, and the mely prepara on of reliable financial informa on, as required
under the Companies Act, 2013.
Auditors’ Responsibility
Our responsibility is to express an opinion on the Company's internal financial controls over financial repor ng based
on our audit. We conducted our audit in accordance with the Guidance Note on Audit of Internal Financial Controls
over Financial Repor ng (the “Guidance Note”) and the Standards on Audi ng, issued by ICAI and deemed to be
prescribed under sec on 143(10) of the Companies Act, 2013, to the extent applicable to an audit of internal financial
controls, both applicable to an audit of Internal Financial Controls and, both issued by the Ins tute of Chartered
Accountants of India. 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 repor ng was established and maintained and if such controls operated effec vely in all material respects.
Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial
controls system over financial repor ng and their opera ng effec veness. Our audit of internal financial controls
over financial repor ng included obtaining an understanding of internal financial controls over financial repor ng,
assessing the risk that a material weakness exists, and tes ng and evalua ng the design and opera ng effec veness
of internal control based on the assessed risk. The procedures selected depend on the auditor’s 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 repor ng.
Meaning of Internal Financial Controls over Financial Repor ng
A company's internal financial control over financial repor ng is a process designed to provide reasonable assurance
regarding the reliability of financial repor ng and the prepara on of financial statements for external purposes
in accordance with generally accepted accoun ng principles. A company's internal financial control over financial
repor ng includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable
detail, accurately and fairly reflect the transac ons and disposi ons of the assets of the company; (2) provide
reasonable assurance that transac ons are recorded as necessary to permit prepara on of financial statements in
accordance with generally accepted accoun ng principles, and that receipts and expenditures of the company are
being made only in accordance with authorisa ons of management and directors of the company; and (3) provide
reasonable assurance regarding preven on or mely detec on of unauthorised acquisi on, use, or disposi on of the
company's assets that could have a material effect on the financial statements.
Inherent Limita ons of Internal Financial Controls over Financial Repor ng
Because of the inherent limita ons of internal financial controls over financial repor ng, 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, projec ons of any evalua on of the internal financial controls over financial repor ng to future
periods are subject to the risk that the internal financial control over financial repor ng may become inadequate
because of changes in condi ons, or that the degree of compliance with the policies or procedures may deteriorate.
64
Annexure - B to the Independent Auditors' Report (Contd.)
Opinion
In our opinion, the Company has, in all material respects, an adequate internal financial controls system over financial
repor ng and such internal financial controls over financial repor ng were opera ng effec vely as at 31 March 2017,
based on the internal control over financial repor ng criteria established by the Company.

S. K. Agrawal

Statutory Report
Financial Report
65
Balance Sheet as at 31st March, 2017 (` in Lacs)
Par culars Note No. As at As at
31st March, 2017 31st March, 2016
EQUITY AND LIABILITIES
Shareholders’ funds
Share capital 2.1 7,334.98 7,334.98
Reserves and surplus 2.2 40,213.09 37,619.58
Non-current liabili es
Long-term borrowings 2.3 65,435.12 70,707.51
Deferred tax liabili es (net) 2.4 3,545.57 2,840.14
Other long-term liabili es 2.5 486.26 463.80
Long-term provisions 2.6 437.94 332.15
Current liabili es
Short-term borrowings 2.7 35,774.98 26,908.98
Trade payables 2.8 8,211.86 7,520.32
Other current liabili es 2.9 13,286.18 11,056.39
Short-term provisions 2.10 234.04 1,026.65
Total 1,74,960.02 1,65,810.50
ASSETS
Non-current assets
Fixed assets 2.11
Tangible assets (Property, plant and equipment) 1,18,600.53 1,19,500.91
Intangible assets 24.61 35.49
Capital work in progress 535.70 457.83
Non-current investments 2.12 56.75 56.75
Long-term loans and advances 2.13 6,195.19 4,925.07
Current assets
Current investments 2.14 - 0.80
Inventories 2.15 22,901.11 17,279.75
Trade receivables 2.16 14,949.68 10,266.48
Cash and bank balances 2.17 3,387.77 8,052.20
Short-term loans and advances 2.18 8,211.47 5,172.38
Other current assets 2.19 97.21 62.84
Total 1,74,960.02 1,65,810.50
Significant accoun ng policies 1
Notes forming part of the financial statements 2
In terms of our a ached report of even date

Firm's Registra on Number : 306033E
S. K. Agrawal
Partner S. K. Khetan A. V. Agarwal
Membership No. 9067 President (Finance) & CFO Manish Goenka
Place : Kolkata G. Saraf P. S. Patwari
Date : 16th May, 2017 V. P. (Finance) & Secretary Directors
66
Statement of Profit and Loss for the year ended 31st March, 2017 (` in Lacs)
Par culars Note No. Year ended Year ended
REVENUES:
Revenue from opera ons 2.20 1,13,835.48 53,880.49
Other income 2.21 1,846.45 638.44
Total Revenue 1,15,681.93 54,518.93
EXPENSES:
Cost of materials consumed 2.22 73,505.89 31,797.51
Changes in inventories of finished goods & work-in- 2.23 (2,204.87) 1,031.69
progress
Employee benefits expense 2.24 5,791.12 3,406.82
Finance costs (net) 2.25 5,701.73 1,613.78
Deprecia on and amor sa on expenses 2.26 5,484.67 2,668.05
Other expenses 2.27 24,104.44 12,919.80
Total expenses 1,12,382.98 53,437.65
Profit before tax 3,298.95 1,081.28
Tax expense:
Current tax 695.40 227.84
Income tax for earlier years - 0.85
Deferred tax 705.44 (1,711.48)

MAT credit en tlement (695.40) (227.84)
Profit a er tax 2,593.51 2,791.91
Earnings per equity share: 2.38
(1) Basic 3.31 3.64
(2) Diluted 3.31 3.64
Significant accoun ng policies 1
Notes forming part of the financial statements 2
Statutory Report

Financial Report
S. K. Agrawal
67
Cash Flow Statement for the year ended 31st March, 2017 (` in Lacs)
Descrip on 2016-17 2015-16
A. CASH FLOW FROM OPERATING ACTIVITIES :
Net profit before tax 3,298.95 1,081.28
Adjustment for :
Deprecia on and amor sa on expenses 5,484.67 2,668.05
No onal foreign exchange loss/(gain) (1,206.86) (222.92)
Provision for employees benefits 105.79 65.08
Finance Costs 5,701.73 1,613.78
Dividend Received (40.82) (14.00)
Profit on sale of current investements (240.11) (535.89)
(Profit) / loss on sale of fixed assets (1.31) 15.03
Opera ng profit before working capital changes : 13,102.04 4,670.41
Add: Decrease / increase in working capital
(Increase)/decrease in trade and other receivables (7,512.55) (7,647.96)
(Increase)/decrease in bank balances (other than cash/cash 113.05 132.07
equivalent)
(Increase)/decrease in inventories (5,621.36) (5,717.04)
Increase/(decrease) in trade and other payables 1,078.57 852.29
Cash generated / (used) from opera ons 1,159.75 (7,710.23)
Taxes paid (455.31) (261.58)
Cash flow before extraordinary items 704.44 (7,971.81)
Net cash generated / (used) from opera ng ac vi es (A) 704.44 (7,971.81)
B. CASH FLOW FROM INVESTING ACTIVITIES :
Investment in fixed assets and capital work in progress (6,338.20) (11,686.86)
(Increase) / decrease in capital advances (876.97) 306.68
Sale of fixed assets 15.70 (6.61)
Dividend received 40.82 14.00
Interest received 445.77 652.93
Profit on sale of current investements 240.11 535.89
(Increase) / Decrease in Investment 0.80 -
Net Cash generated / (used) in inves ng ac vi es (B) (6,471.97) (10,183.97)
C. CASH FLOW FROM FINANCING ACTIVITIES :
Net proceeds from / (repayment of) long term borrowings (1,769.70) 3,706.26
Increase/(decrease) in short term borrowings 9,967.46 15,847.09
Interest and other borrowing cost paid (5,954.96) (1,853.12)
Dividend and dividend tax paid (1,026.65) (952.36)
Net cash generated / (used) in financing ac vi es (C) 1,216.15 16,747.87
Net increase/(Decrease) in cash & cash equivalents (A+B+C) (4,551.38) (1,407.91)
* Cash & cash equivalents (opening balance) 7,537.13 8,945.04
* Cash & cash equivalents (closing balance) 2,985.75 7,537.13
68
Cash Flow Statement for the year ended 31st March, 2017 (` in Lacs)
* Represents cash and bank balances as indicated in Note 2.17.
Note: Cash & Cash Equivalents represents “Cash and Bank Balances” except Rs.5.80 lacs (Rs. 5.56 lacs) lying in
designated account with Scheduled Banks on account of unclaimed dividend and Rs.396.22 lacs (Rs.509.50 lacs)
lying as Fixed Deposit with Banks that are being pledged as security, which are not readily available for use by the
Company.

S. K. Agrawal

Statutory Report
Financial Report
69
Notes to financial statements for the year ended 31st March, 2017
1. SIGNIFICANT ACCOUNTING POLICIES
1.1 General
The financial statements are prepared under the historical cost conven on on the accrual basis of accoun ng
and in accordance with Accoun ng principles generally accepted in India and comply with the Accoun ng
Standards no fied by the Central Government of India and relevant provisions of the Companies Act, 2013.
1.2 Use of es mates
The prepara on of the financial statements in conformity with Indian GAAP requires the Management to
make es mates and assump ons that affect the reported amounts of assets and liabili es, the disclosure
of con ngent liabili es on the date of the financial statements and reported amounts of revenues and
expenses for the year. The Management believes that the es mates used in prepara on of the financial
statements are prudent and reasonable. Future results could differ due to these es mates and the
differences between the actual results and the es mates are recognized in the periods in which the results
are known/materialize.
1.3 Opera ng Cycle
Based on the nature of products/ac vi es of the Company and the normal me between acquisi on of
assets and their realiza on in cash or cash equivalents, the Company has determined its opera ng cycle as
12 months for the purpose of classifica on of its assets and liabili es as current and non-current.
1.4 Property, Plant & Equipment
a) Property, plant & equipment are carried at cost, less accumulated deprecia on and accumulated
impairment losses. Direct costs are capitalized un l such assets are ready for use. Capital work-in-
progress comprises the cost of fixed assets that are not ready for their intended use at the repor ng
date.
b) Property, plant and equipment includes spare parts, stand-by equipment and servicing equipment
which are expected to be used for a period more than twelve months and meets the recogni on
criteria of plant, property and equipment.
c) Deprecia on -Deprecia on on property, plant and equipment is provided to the extent of depreciable
amount on pro-rata basis over the useful life of respec ve assets as prescribed under schedule-II to the
Companies Act, 2013.
a. On straight-line method in respect of
i) Buildings of Paper machine-II, III, IV, ETP-II, Power Genera on Unit-II & III at Balasore.
ii) Plant & machinery of Paper Machine III, IV, ETP-II, Power Genera on unit-II & III at Balasore.
b. On wri en down value method in respect of other assets.
c. Leasehold land is amor sed over the period of lease.
d. So ware licenses are amor sed over a period of six years.
Addi on to an asset, is depreciated over the remaining useful life of that asset, except when such addi on
retains a separate iden ty and is capable of being used a er the asset is disposed of, such addi ons are
depreciated independently over its own useful life.
Depreciable value of fixed asset is its cost of acquisi on as reduced by residual value of five percent of the
cost of acquisi on of the asset.
1.5 Investments
Long term investments are stated at cost. Diminu on in value of non-current investments other than
temporary in nature is provided for in the accounts. Current Investments are stated at cost or net realisable
value, whichever is lower.
70
Notes to financial statements for the year ended 31st March, 2017 (Contd.)
1.6 Inventories
a) Finished goods, stock-in-process, raw materials, stores, chemicals and spare parts are valued at lower
of cost or net realisable value.
b) Valua on of inventory is done under weighted average cost formula.
c) Inventories do not include items of spare parts which meets the recogni on criteria of plant, property
and equipment and be treated as such.
1.7 Re rement benefits
a) Contribu on to provident fund is made at a pre-determined rate and charged to revenue on accrual
basis.
b) Company’s liability towards gratuity and leave encashment is actuarially determined at each balance
sheet date using the projected unit credit method. Actuarial gains and losses are recognized in revenue.
The contribu on towards Gratuity and Leave Encashment liability are funded with the LIC.
1.8 Foreign currency transac ons
a) Transac ons in foreign exchange covered by forward contracts are accounted for at the contracted
rates.
b) Transac ons other than those covered by forward contracts are recognised at the exchange rates
prevailing on the date of their occurrence.
c) Monetary assets & liabili es in foreign currency that are outstanding at the year end and not covered
by forward contracts are translated at the year end exchange rates.

d) The exchange differences arising from long term foreign currency monetary items rela ng to the
acquisi on of a depreciable asset are added to or deducted from the cost of the depreciable capital
assets. Other exchange differences arising from long-term foreign currency monetary items are
transferred to “Foreign currency monetary item transla on difference account” to be amor sed over
the life of such monetary items but not beyond 31st March 2020. Other exchange differences are
recognized as income or expense in the profit &loss account.
1.9 Revenue Recogni on
Revenue from sale of goods is recognized when significant risks and rewards in respect of ownership of
products are transferred to customers. Revenue from sale of goods is inclusive of excise duty and net of
returns, sales tax and applicable trade discounts and allowances.
Statutory Report
Dividend income is recognized when the uncondi onal right to receive the income is established. Income
from interest on deposits, loans and interest bearing securi es is recognized on a me propor onate
method using underlying interest rates.
Insurance and other claims/refunds are accounted for as and when admi ed.
1.10 Con ngent liabili es and provisions:
Con ngent liabili es are disclosed a er a careful evalua on of facts and legal aspects of the ma er involved.
Provisions are recognized when the company has legal / construc ve obliga on, as a result of a past event,
for which it is probable that a cash ou low may be required and a reliable es mate can be made for the
amount of the obliga on.
Financial Report
1.11 Borrowing cost:

Borrowings cost that are a ributable to the acquisi on or construc on of qualifying assets is capitalized as
part of the cost of such assets. All other borrowing costs are charged to revenue. Exchange difference on the
principal amount of the foreign currency borrowings to the extent that they are regarded as an adjustment
to the interest cost as mandated by paragraph 4(e) of Accoun ng Standard – 16 are treated as Borrowing
Cost.
71
1.12 Taxa on
Provision for tax is made for both current and deferred taxes. Provision for current tax is made at the current
tax rates based on assessable income.
Deferred taxes reflect the impact of current year’s ming differences between taxable income and accoun ng
income for the year and reversal of ming differences of earlier years. The deferred tax in respect of ming
differences that originate during the tax holiday period and reverse during the tax holiday period is not
recognized.Deferred tax assets are recognized only to the extent that there is virtual certainty supported by
convincing evidence that sufficient future taxable income will be available against which such deferred tax
assets can be realized.Deferred tax assets and liabili es are measured using the tax rates and tax laws that
have been enacted.
Minimum Alternate Tax (MAT) paid in accordance with the tax laws, which gives future economic benefits
in the form of adjustment to future income tax liability, is considered as an asset if there is convincing
evidence that the Company will pay normal income tax. Accordingly, MAT is recognized as an asset in the
Balance Sheet when it is probable that future economic benefit associated with it will flow to the Company.
1.13 Government subsidy/grant:
Capital subsidy granted by the government is treated as capital reserve and interest subsidy is treated as a
revenue receipt except to the extent it is adjusted towards pre-opera ve cost for the specified assets.
1.14 Earnings per share:
Basic earnings per share are calculated by dividing the net profit/loss for the period a ributable to equity
shareholders (a er deduc ng preference dividends and a ributable taxes) by the weighted average
number of equity shares outstanding during the period. The weighted average numbers of equity shares
outstanding during the period are adjusted for the events of bonus issue and share split.
For the purpose of calcula ng diluted earnings per share, the net profit or loss for the period a ributable to
equity shareholders and the weighted average number of equity shares outstanding during the period are
adjusted for the effects for all dilu ve poten al equity shares.
1.15 Impairment of assets
The company iden fies impairable assets at the year-end in accordance with the guiding principles
of Accoun ng Standard 28, no fied by the Central Government of India, for the purpose of arriving at
impairment loss thereon being the difference between the book value and recoverable value of relevant
assets. Impairment loss, when crystallizes, are charged against revenues for the year.
1.16 Segment repor ng
Segments have been iden fied and reported taking into account nature of products, the differing risks and
returns associated with opera ons.
1.17 Opera ng lease
Leases where the lessor effec vely retains substan ally all the risks and benefits of ownership over the
leased term are classified as opera ng leases. Opera ng lease payments are recognised as an expense in
the profit and loss account on a straight-line basis over the lease term.
1.18 Cash and cash equivalents
In the cash flow statement, cash and cash equivalents includes cash in hand, demand deposits with banks,
other short term highly liquid investments with original maturi es of three months or less.
1.19 Cash Flow Statement
Cash flows are reported using the indirect method, whereby profit/(loss) before extraordinary items and tax
is adjusted for the effects of transac ons of non-cash nature and any deferrals or accruals of past or future
cash receipts or payments. The cash flows from opera ng, inves ng and financing ac vi es of the Company
are segregated based on the available informa on.
72
Notes to financial statements for the year ended 31st March, 2017 (Contd.) (` in Lacs)
2.1 SHARE CAPITAL
Par culars As at As at
Authorised
6,20,00,000 Equity shares of ` 2/- each 1,240.00 1,240.00
61,25,000 (61,25,000) Preference shares of ` 100/- each 6,125.00 6,125.00
Issued, subscribed & paid up
604,99,050 (604,99,050) Equity shares of ` 2/- each fully paid 1,209.98 1,209.98
61,25,000 (61,25,000) 8% Cumula ve redeemable non- 6,125.00 6,125.00
conver ble preference shares (CRNPS) of Rs. 100/- each fully
paid up
Total 7,334.98 7,334.98
a) Reconcilia on of the shares outstanding at the beginning and at the end of the repor ng year
Par culars 2016-17 2015-16
Number Amount Number Amount
(i) Equity shares
At the beginning of the year 6,04,99,050 1,209.98 6,04,99,050 1,209.98
At the end of the year 6,04,99,050 1,209.98 6,04,99,050 1,209.98

(ii) Preference shares
At the beginning of the year 61,25,000 6,125.00 61,25,000 6,125.00
At the end of the year 61,25,000 6,125.00 61,25,000 6,125.00
b) Terms / rights a ached to shares
(i) Equity shares
The Company has only one class of equity shares having a par value of ` 2/- per share. Each holder of
equity shares is en tled to one vote per share. 65,352 numbers of shares, which have been transferred
to Investor Educa on and Protec on Fund Suspense Account pursuant to sec on 124(6) of Companies
Act, 2013 does not carry any vo ng right. The Company declares and pay dividend in Indian rupees. The
dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing
Statutory Report
Annual General Mee ng.
In the event of liquida on of the Company, the holders of equity shares will be en tled to receive remaining
assets of the Company, a er distribu on of all preferen al amounts. The distribu on will be in propor on
to the number of equity shares held by the shareholders.
The Cumula ve Redeemable Non-Conver ble Preference Shares (CRNPS) of ` 100/- each fully paid up
carry cumula ve dividend @8% p.a.
The Company declares and pay dividends in Indian rupees on pro-rata basis from the date of allotment. The
dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing
Annual General Mee ng. Holders of CRNPS have vo ng rights on ma ers pertaining to CRNPS.
Financial Report
In the event of liquida on of the Company before redemp on of CRNPS, the holders of CRNPS will have
priority over equity shares in the repayment of capital. 50,00,000 CRNPS are redeemable at a premium of
` 500 per share and 11,25,000 CRNPS are redeemable at a premium of ` 600 per share on the expiry of
12 years from the date of issue, with an op on to redeem it earlier at a premium to be decided mutually
between the Company and the CRNPS holders at a mee ng of CRNPS holders called for this purpose.
73
c) Shareholders holding more than 5% shares in the Company
Name of shareholder 2016-17 2015-16
Number % of Number % of
Holding Holding
(i) Equity shares
Diwakar Viniyog Private Limited 94,69,810 15.65% 94,69,810 15.65%
Emami Limited 79,46,000 13.13% 79,46,000 13.13%
Suntrack Commerce Private Limited 76,33,900 12.62% 76,33,900 12.62%
Bhanu Vyapaar Private Limited 60,05,250 9.93% 60,05,250 9.93%

Emami Estates Private Limited 3,75,000 6.12% 3,75,000 6.12%
Zandu Realty Limited 12,80,000 20.90% 12,80,000 20.90%
Oriental Sales Agencies (India) Private Limited 6,75,000 11.02% 6,75,000 11.02%
Sneha Niketan Private Limited 4,05,500 6.62% 4,05,500 6.62%
Zen Business Private Limited 3,17,000 5.18% 3,17,000 5.18%
Sneha Abasan Private Limited 7,29,000 11.90% 7,29,000 11.90%
Karan Business Private Limited 6,77,000 11.05% 6,77,000 11.05%
Sneha Enclave Private Limited 5,52,000 9.01% 5,52,000 9.01%
Sneha Gardens Private Limited 5,64,500 9.22% 5,64,500 9.22%
2.2 RESERVES AND SURPLUS (` in Lacs)

a. Capital reserve 133.50 133.50
b. Securi es premium account 20,134.57 20,134.57
c. General reserve 14,000.00 14,000.00
d. Surplus
Opening balance 3,351.51 1,586.25
Add: Net profit / (net loss) for the current year 2,593.51 2,791.91
Less: Appropria ons
Proposed dividend on equity shares - 363.00
Proposed dividend on preference shares - 490.00
Corporate dividend tax - equity dividend - 73.90
Corporate dividend tax - preference dividend - 99.75
Total appropria ons - 1,026.65
Net surplus in the statement of profit & loss 5,945.02 3,351.51
Total 40,213.09 37,619.58
The Company, a er the balance sheet date has proposed final dividend of Re.1.20 (Re. 0.60) per equity share
and dividend of ` 8.00 (` 8.00) per cumula ve redeemable non-conver ble preference share. In 2016-17,
no liability is recognized on this account pursuant to para 8.5 of Accoun ng Standard – 4 ‘Con ngencies
and events occurring a er Balance Sheet’ as no fied by Ministry of Corporate Affairs through Companies
(Accoun ng Standards) Amendment Rules, 2016 dated 30.03.2016.
74
2.3 LONG TERM BORROWINGS
Term Loans (Secured)
From Banks 77,061.14 80,503.37
Less: Current maturi es of long term debt * 11,626.02 9,795.86
Total 65,435.12 70,707.51
Nature of Security :
Term loans of ` 77,061.14 lacs (` 80,503.37 lacs) are secured by deposit of tle deeds in respect of present and
future immovable proper es and hypotheca on of present and future movable fixed assets on a pari-passu
basis and second charge on current assets on pari-passu basis.
Terms of Repayment of Term Loans :
Bank Name Terms of repayment Rate of Interest Outstanding in FC Outstanding

($ in Million) in INR
Allahabad Bank ECB Repayable in 19 (20) quarterly 6 month LIBOR plus 9.04 5,862.43
instalments. 4.5% p.a. (10.00) (6,625.00)
Exim Bank ECB Repayable in 28 quarterly instalments 6 month LIBOR plus 14.00 9,079.00
commencing from June, 2017. 4.75% p.a. (14.00) (9,275.00)

IDBI Bank ECB Repayable in 23 (24) quarterly 6 month LIBOR plus 12.46 8,079.23
instalments. 5% p.a. (13.00) (8,612.50)
Axis Bank ECB Repayable in 19 (20) quarterly 6 month LIBOR plus 14.80 9,597.80
instalments. 4.65% p.a. (15.00) (9,937.50)
Axis Bank ECB Repayable in 20 quarterly instalments 6 month LIBOR plus 10.00 6,485.00
commencing from April,2018. 4.65% p.a. (10.00) (6,625.00)
Axis Bank FCNR (B) Repayable in (18) 21 quarterly 6 month LIBOR plus 13.02 8,443.75
instalments. 4.25% p.a. (14.88) (9,855.00)
Statutory Report
State Bank of FCNR (B) Repayable in 12 (16) quarterly 6 month LIBOR + 8.22 5,329.37
India instalments. applicable spread p.a. (10.40) (6,890.00)
State Bank of FCNR (B) Repayable in 20 (24) quarterly 6 month LIBOR + 8.12 5,266.73
India instalments. applicable spread p.a. (9.02) (5,975.75)
RBL Bank FCNR (B) Repayable in 22 (24) quarterly 3 month LIBOR plus 7.43 4,815.23
instalments. 4.25% p.a. (7.62) (5,045.31)
ICICI Bank FCNR (B) Repayable in 20 quarterly 6 month LIBOR plus 11.54 7,481.54
instalments commencing from June,2019. 3.85% p.a. - -
Financial Report
State Bank of RTL repaid in full during the year. SBH Base Rate + 3% - -
Hyderabad p.a. (3.73) (2,472.36)
ICICI Bank RTL Repayable in 10 (14) quarterly ICICI Bank Base rate + 5.64 3,655.70
instalments. The Company has entered into applicable spread p.a. (7.89) (5,228.47)
principal swap in USD.
75
Bank Name Terms of repayment Rate of Interest Outstanding in FC Outstanding
($ in Million) in INR
ICICI Bank RTL Repayable in 13 (17) quarterly ICICI Bank Base rate + 4.57 2,965.36
instalments. The Company has entered into applicable spread p.a. (5.98) (3,961.48)
principal swap in USD.
Total 118.83 77,061.14

(121.52) (80,503.37)
* The amount repayable within next 12 month for the above loans has been classified as “Current Maturi es” in
Note No. 2.9.
2.4 DEFERRED TAX LIABILITIES NET

Deferred tax liabili es
Tax impact due to difference between tax deprecia on and 11,629.39 7,883.93
book deprecia on
11,629.39 7,883.93
Deferred tax assets
Tax Impact of unabsorbed deprecia on 7,543.49 4,538.63
Tax Impact of carry forward of business losses 429.18 429.18
Tax Impact of expenses charged off in financial statements but 111.15 75.98
allowance under tax law deferred
8,083.82 5,043.79
Total 3,545.57 2,840.14
2.5 OTHER LONG TERM LIABILITIES

Trade deposits 471.75 449.53
Reten on money 14.51 14.27
Total 486.26 463.80
2.6 LONG TERM PROVISIONS

Provision for employees benefits
- Gratuity 423.99 321.87
- Earned leave 13.95 10.28
Total 437.94 332.15
2.7 SHORT TERM BORROWINGS

Secured
Working capital borrowings from banks 33,389.62 25,201.39
Buyers credit for capital goods 2,385.36 1,707.59
Total 35,774.98 26,908.98
Nature of Security :
Short term borrowings are secured by hypotheca on of present and future stock of materials, stock-in-process,
finished goods, stores and spares, book debts, outstanding money, claims receivable and further secured by way of
second charge on all immovable and movable proper es/fixed assets both present and future on a pari passu basis.
76
2.8 TRADE PAYABLES (` in Lacs)
Other than micro, small and medium enterprises
Trade payables
For goods 6,148.70 5,035.25
For services 1,247.32 882.59
For capital goods 756.50 1,561.24
Micro, small and medium enterprises
Trade payables
For goods 59.34 39.76
For services - 1.48
Total 8,211.86 7,520.32
2.9 OTHER CURRENT LIABILITIES

Current maturi es of long term debt 11,626.02 9,795.86
Interest accrued but not due on borrowings 651.93 514.58
Unpaid dividend 5.80 5.56
Statutory dues 300.32 228.04
Advance from customers 121.48 105.36

Interest payable on trade deposits 35.16 31.10
Liabili es for expenses 545.47 375.89
Total 13,286.18 11,056.39
2.10 SHORT TERM PROVISIONS

Current Tax (net of tax payment) 234.04 -
Dividend on equity shares - 363.00
Dividend on preference shares - 490.00
Tax on equity dividend - 73.90
Tax on preference dividend - 99.75
Statutory Report
Total 234.04 1,026.65
Financial Report
77
2.11 FIXED ASSETS (` in Lacs)
(a) Current year
Fixed assets Gross block Accumulated deprecia on and amor sa on Net block
As at Addi ons Disposals / As at As at For the Disposals / As at As at
01.04.2016 Adjustment 31.3.2017 01.04.2016 year Adjustment 31.3.2017 31.3.2017
Tangible assets
Land
Free hold 724.98 - - 724.98 - - - - 724.98
Lease hold 1,282.48 - - 1,282.48 64.32 20.39 - 84.71 1,197.77
Buildings
Factory 17,041.46 7.36 303.15 16,745.67 1,539.78 531.31 - 2,071.09 14,674.58
Non factory 9,132.51 1,786.62 94.41 10,824.72 597.02 297.65 - 894.67 9,930.05
Plant and equipments 1,19,234.90 4,323.86 1,342.58 1,22,216.18 26,207.37 4,407.97 0.30 30,615.04 91,601.14
Furniture and fixtures 1,165.07 53.75 1.25 1,217.57 857.24 97.79 0.99 954.04 263.53
Vehicles 301.20 85.88 47.50 339.58 229.49 28.49 39.13 218.85 120.73
Office equipments 99.54 22.83 - 122.37 67.71 19.87 - 87.58 34.79
Computers 267.82 37.15 0.80 304.17 186.12 65.86 0.77 251.21 52.96
Total 1,49,249.96 6,317.45 1,789.69 1,53,777.72 29,749.05 5,469.33 41.19 35,177.19 1,18,600.53
Intangible assets
Computer so ware 154.96 4.46 - 159.42 119.47 15.34 - 134.81 24.61
Total 154.96 4.46 - 159.42 119.47 15.34 - 134.81 24.61
Capital work in progress 457.83 3,603.57 3,525.70 535.70 - - - - 535.70
Total 457.83 3,603.57 3,525.70 535.70 - - - - 535.70
78
2.11 FIXED ASSETS (` in Lacs)
(a) Previous year
Fixed assets Gross block Accumulated deprecia on and amor sa on Net block
As at Addi ons Disposals / As at As at For the Disposals / As at As at
01.04.2015 Adjustment 31.3.2016 01.04.2015 year Adjustment 31.3.2016 31.3.2016
Tangible assets
Land
Free hold 724.98 - - 724.98 - - - - 724.98
Lease hold 1,222.21 60.27 - 1,282.48 49.73 14.59 - 64.32 1,218.16
Buildings
Factory 3,471.25 13,570.21 - 17,041.46 1,426.76 113.02 - 1,539.78 15,501.68
Non factory 3,114.17 6,018.34 - 9,132.51 496.13 100.89 - 597.02 8,535.49
Plant and equipments 61,693.21 57,566.70 25.01 1,19,234.90 23,993.94 2,230.40 16.97 26,207.37 93,027.53
Furniture and fixtures 1,069.50 97.38 1.81 1,165.07 752.60 106.09 1.45 857.24 307.83
Vehicles 288.44 12.76 - 301.20 196.10 33.39 - 229.49 71.71
Office equipments 69.68 29.86 - 99.54 56.32 11.39 - 67.71 31.83
Computers 186.58 82.49 1.25 267.82 152.10 35.25 1.23 186.12 81.70
Total 71,840.02 77,438.01 28.07 1,49,249.96 27,123.68 2,645.02 19.65 29,749.05 1,19,500.91
Intangible assets
Computer so ware 140.81 14.15 - 154.96 96.44 23.03 - 119.47 35.49

Total 140.81 14.15 - 154.96 96.44 23.03 - 119.47 35.49
Capital work in 61,993.48 13,290.31 74,825.96 457.83 - - - - 457.83
progress
Total 61,993.48 13,290.31 74,825.96 457.83 - - - - 457.83
2.12 NON CURRENT INVESTMENTS

(Long term, at cost)
Non trade
Statutory Report
(a) Investment in equity instruments :
Unquoted
3,07,300 (3,07,300) Equity shares of ` 10/- each fully paid up 0.62 0.62
of Pan Emami Cosmed Ltd.
Quoted
833 (833) Equity shares of ` 2/- each fully paid up of Emami 0.09 0.09
Infrastructure Ltd.
4,66,500 (4,66,500) Equity shares of Re.1/- each fully paid up of Emami Ltd. 55.41 55.41
(b) Investment in government securities :
(lodged with government authorities)
Financial Report
5 years national saving certificates 0.60 0.60

Total 56.75 56.75
Market value of quoted investment 4,965.89 4,347.47
Aggregate book value of quoted investment 55.50 55.50
Aggregate book value of unquoted investment 1.25 1.25
79
2.13 LONG TERM LOANS AND ADVANCES (` in Lacs)
Secured, considered good
Capital advances - 1.85
Unsecured, considered good
Capital advances 1,543.56 664.73
Deposits 1,192.23 1,222.47
Loans and advances to employees 27.83 28.42
Other loans and advances
Cenvat credit receivable 342.60 342.60
Prepaid expenses 2.09 1.52
Service tax refundable 21.19 21.19
MAT credit entitlement 3,065.69 2,370.29
Inter corporate deposits - 272.00
Total 6,195.19 4,925.07
2.14 CURRENT INVESTMENTS

Non trade
Government securities
(lodged with government authorities)
6 years na onal saving cer ficates - 0.80
Total - 0.80
2.15 INVENTORIES
Raw materials 14,361.73 11,420.10
Work-in-progress 1,085.93 603.00
Finished goods 3,936.98 2,215.04
Stores and spares 3,516.47 3,041.61
Total 22,901.11 17,279.75
Inventory includes following inventories in transit :
Raw materials 3,573.53 2,266.59
Stores and spares 61.31 9.46
3,634.84 2,276.05
2.16 TRADE RECEIVABLES

Outstanding for a period exceeding six months from the date 352.18 29.81
they are due for payment
Others 14,597.50 10,236.67
Total 14,949.68 10,266.48
80
2.17 CASH AND BANK BALANCES (` in Lacs)
Cash & cash equivalents
Balances with banks
Current account 521.57 308.38
Fixed deposit with banks (Original maturity of less than 3 2,450.00 7,214.08
months)
Cash in hand 13.57 14.28
Cheques in hand 0.61 0.39
Other bank balances
Balances with banks in unpaid dividend accounts 5.80 5.56
Fixed deposit with banks for margin
Original maturity of more than 12 months - 92.94
Others 396.22 416.57
Total 3,387.77 8,052.20
2.18 SHORT TERM LOANS AND ADVANCES

Advance for supply of goods and for rendering services 2,631.10 1,507.29

Advance Income Tax (net of provision) - 6.05
Deposits 368.51 147.61
Other loans and advances
Prepaid expenses 149.65 137.66
Cenvat credit receivable 4,965.35 3,258.32
Receivable from sales tax authorities 27.61 30.88
Advances to employees 69.25 84.57
Total 8,211.47 5,172.38
2.19 OTHER CURRENT ASSETS

Interest receivable 16.91 62.84
Statutory Report
Export incen ve receivable 80.30 -
Total 97.21 62.84
2.20 REVENUE FROM OPERATIONS

Sale of paper and paperboard 1,18,082.65 54,291.58
Other operating revenues 225.21 198.19
1,18,307.86 54,489.77
Less: Excise duty 4,472.38 609.28
Total 1,13,835.48 53,880.49
Financial Report
81
2.21 OTHER INCOME (` in Lacs)
Insurance claims 44.12 17.79
Dividend from long-term investments 40.82 14.00
Profit on sale of current investments 240.11 535.89
Profit on sale of fixed assets 1.31 0.05
Export incentives 111.26 -
Foreign exchange fluctuation 1,293.63 52.19
Others 115.20 18.52
Total 1,846.45 638.44
2.22 COST OF MATERIALS CONSUMED

Pulp and waste paper 63,702.80 28,027.77
Chemicals 9,803.09 3,769.74
Total 73,505.89 31,797.51
2.23 CHANGES IN INVENTORIES OF FINISHED GOODS & WORK

IN PROGRESS
Opening stock
Work-in-progress 603.00 294.74
2,818.04 1,974.93
Closing stock
Work-in-progress 1,085.93 603.00
5,022.91 2,818.04
(2,204.87) (843.11)
Less: Changes in Inventories of finished goods and work-in-
progress for the trial run period
Opening stock
Finished goods - -
Work-in-progress - 103.84
- 103.84
Closing stock
Finished goods - 1,384.28
Work-in-progress - 594.36
- 1,978.64
- (1,874.80)
Total (2,204.87) 1,031.69
82
2.24 EMPLOYEE BENEFITS EXPENSES (` in Lacs)
Salaries and wages 4,912.90 2,864.82
Contribution to provident and other funds 382.29 252.65
Workmen and staff welfare expense 495.93 289.35
Total 5,791.12 3,406.82
2.25 FINANCE COSTS

Interest expense 5,453.75 1,695.63
Loss on foreign currency transaction and translation 268.14 499.92
Other borrowing costs 379.68 66.05
6,101.57 2,261.60
Less: Interest received 399.84 647.82
Total 5,701.73 1,613.78
2.26 DEPRECIATION AND AMORTISATION EXPENSES

On Tangible assets 5,469.33 2,645.02
On Intangible assets 15.34 23.03
Total 5,484.67 2,668.05

2.27 OTHER EXPENSES
Consump on of stores and spare parts 4,961.81 2,420.38
Power and fuel 10,833.35 5,832.61
Manufacturing expenses 2,126.47 1,046.00
Rent 88.04 31.11
Repairs to building 61.95 109.45
Repairs to machinery 393.98 186.62
Repairs to others 96.89 93.10
Insurance 130.54 87.97
Rates and taxes 1,278.71 945.17
Statutory Report
Donation 31.48 13.58
Directors' sitting fees 10.70 12.00
Freight outward 1,148.85 817.09
Selling expenses 1,625.25 585.54
Loss on sale of fixed assets - 15.08
Miscellaneous expenses 1,316.42 724.10
Total 24,104.44 12,919.80
Financial Report
83
2.28 CONTINGENT LIABILITIES AND COMMITMENTS
a) Con ngent liabili es not provided for in respect of:
i) Outstanding guarantees and le ers of credit furnished by the bankers on behalf of the Company
amoun ng to ` 5,651.14 lacs (` 4,178.45 lacs) are secured by hypotheca on of current assets, as
specified in Note 2.7 and those amoun ng to Nil (` 1,062.09 lacs) are secured by deposit of tle deeds
of immovable proper es and hypotheca on of movable fixed assets, as specified in Note 2.3.
ii) Sales tax /VAT/entry tax / central excise du es/service tax/ESI contribu on and other taxes under
appeal / review – ` 453.95 lacs net of advances of ` 158.48 lacs (` 466.99 lacs net of advances of
` 169.76lacs).
iii) Bonds / undertakings given under EPCG scheme to custom authority – ` 5,601.02 lacs (` 5,565.02
lacs).
iv) Withdrawal of incen ve tariff of electricity by NESCO ` 41.53 lacs net of deposit of ` 61.93 lacs
(` 46.26 lacs net of deposit of ` 61.93 lacs).
b) Capital and other commitments:
Es mated amounts of capital contracts remaining to be executed and not provided for (net of advances)
` 2,886.78 lacs (` 1,583.93 lacs).
2.29 ENTRY TAX

As per the interim order of Honourable Supreme Court of India dated 03.02.2010 and 09.04.2013 the
Company is directed to deposit 1/3rd and 50% respectively of the entry tax on goods imported from outside
and not manufactured within the state of Orissa. In pursuance to the said orders the Company has deposited
a sum of ` 649.52 lacs (` 506.93 lacs) as against total amount of ` 1,347.29 lacs (` 1,026.98 lacs) for the
financial year from 2008-09 to 2016-17.
2.30 DEFERRAL/CAPITALIZATION OF EXCHANGE DIFFERENCES

The Company has exercised the option permitted by Accounting Standard Amendment Rule, 2009 under the
transitional provisions contained in Para 46 of Accounting Standard (AS) 11 (vide GOI Notification No.GSR
225(E) dated 31st March 2009 as amended by Notifications No. GSR 378(E) dated 11th May, 2011 and GSR
913 (E) dated 29th December, 2011). Accordingly, a sum of ` 1,632.25 lacs being the exchange gain for the
year (` 1,462.45 lacs being the exchange loss for the previous year) arising on reporting of Long-Term Foreign
Currency Monetary Items has been deducted from (added to) the cost of depreciable capital asset as at
31st March 2017. The net exchange loss of ` 12,013.61 lacs (` 13,645.86 lacs) in the carrying amount of the
depreciable capital asset(s) as on the Balance Sheet date would be depreciated over the remaining useful life
of the assets.
2.31 The Company has incurred during the year a sum of ` 191.91 lacs (` 177.29 lacs) towards Corporate Social
Responsibility within the purview of CSR expenditure as specified in Schedule-VII to the Companies Act,2013.
2.32 DISCLOSURES REQUIRED UNDER THE MICRO, SMALL AND MEDIUM ENTERPRISES DEVELOPMENT
ACT.
Delayed payment made during the year on account of principal - Nil (Previous Year - NIL) and delayed payment
due as at the end of the year on account of principal - Nil (Previous Year NIL); hence, no interest is paid /
payable under MSMED Act, 2006.
84
2.33 CAPITAL WORK IN PROGRESS INCLUDES THE FOLLOWING (` in Lacs)
PRE OPERATIVE AND TRIAL RUN EXPENSES PENDING
ALLOCATION/CAPITALIZATION:
Par culars 2016-17 2015-16
Interest and financial charges 2,969.99
Foreign exchange fluctuation 3,549.70
Pre-operative expenses 463.06
Trial run expenses (net) -
Revenue 30,797.69
Other Income 63.62
30,861.31
Expenses
Cost of Materials Consumed 25,164.57
Changes in Inventories of finished goods and work-in-progress (1,874.79)
Employees Benefits Expenses 1,648.93
Finance Cost 1,149.95
Consumption of Stores and Spare Parts 1,309.63
Power and Fuel 3,592.68
Manufacturing Expenses 519.89
Rates and Taxes 298.21

Foreign Exchange Fluctuation Loss /(Gain) 258.02
Other Overhead Expenses 703.45
32,770.54 1,909.23
Add : Expenditure incurred upto Previous Year 12,672.38
Total 21,564.36
Less : Alloca on to Fixed Assets 21,564.36
Total - -
2.34 VALUE OF IMPORT ON CIF BASIS DURING THE YEAR

(including trial opera ons)
Statutory Report
a) Raw material and chemicals 39,732.52 25,817.02
b) Stores and spares 817.14 484.65
c) Capital goods 1,209.95 689.58
d) Others 480.84 403.24
Financial Report
85
2.35 EXPENDITURE INCURRED IN FOREIGN CURRENCY DURING (` in Lacs)
THE YEAR (including trial opera ons)
a) Interest and financial charges 3,852.99 3,545.84
b) Other interest 95.84 92.17
c) Travelling expenses 17.07 43.09
d) Professional fees 128.11 247.00
e) Commission 47.18 -
2.36 IMPORTED AND INDEGENOUS RAW MATERIALS, STORES

AND SPARE PARTS CONSUMED DURING THE YEAR
Par culars 31st March 2017 31st March 2016
(` in lacs) % (` in lacs) %
a. Consump on of raw materials and chemicals
(including trial opera ons)
Indigenous 35,264.70 47.98 35,631.99 62.55
Imported 38,241.19 52.02 21,330.10 37.45
Total 73,505.89 100.00 56,962.09 100.00
b. Consumption of stores and spares
(including trial operations)
Indigenous 3,834.71 92.04 3,176.03 85.15
Imported 1,127.10 7.96 553.98 14.85
Total 4,961.81 100.00 3,730.01 100.00
2.37 EARNINGS IN FOREIGN CURRENCY (including trial opera ons)

Export of goods on FOB basis 2,556.56 714.73
2.38 EARNINGS PER SHARE (EPS)

Net Profits a er tax (` In lacs) 2,593.51 2,791.91
Less :
Dividend on Preference Share 490.00 490.00
Tax on Preference Dividend 99.75 99.75
Net Profit available for Equity Share Holders 2,003.75 2,202.16
Number of equity shares (Nos. in lacs) 604.99 604.99
Basic and diluted earnings per share (`) 3.31 3.64
Nominal Value per share (`) 2.00 2.00
Proposed preference dividend and dividend distribu on tax thereon, has not been recognized as liability as
on 31.03.2017 (refer to Note 2.46), but the same has been considered in determina on of earning per share
pursuant to paragraph 13 of Accoun ng Standard 20 ‘Earning per Share’.
86
2.39 RELATED PARTY DISCLOSURES
a. Key management personnel
Shri A.V. Agarwal, Execu ve Chairman
Shri Manish Goenka, Whole me director
Shri P.S. Patwari, Execu ve Director
Shri M.B.S. Nair, Director Opera ons
Shri S.K. Khetan, President (Finance) & CFO
Shri G.Saraf, VP (Finance) & Secretary
Other Directors
Shri J.N. Godbole, Independent Director
Shri S.Balasubramanian, Independent Director
Shri H.M. Marda, Independent Director
Shri J.K. Khetawat, Independent Director
Shri U.G. Bhat, Independent Director
Smt Richa Agarwal, Non-Execu ve Director
b. Rela ves of key management personnel
Shri R. S. Agarwal
Smt. Usha Agarwal
Shri Harsh Vardhan Agarwal

Smt. Pree Sureka
Shri Shyam Patwari
c. Enterprises where key management personnel and their rela ves are able to exercise significant
influence
Emami Limited
Emami Cement Limited
Emami Capital Market Limited
AMRI Hospitals Limited
Oriental Sales Agencies (India) Private Limited
Statutory Report
Suntrack Commerce (P) Ltd.
Sneha Enclave Private Limited
Sneha Gardens Private Limited
Emami Estates Private Limited
Bhanu Vyapaar Private Limited
Auto Hi-Tech Private Limited
Diwakar Viniyog Private Limited
Pan Emami Cosmed Ltd
TMT Viniyogan Limited
Financial Report
87
Disclosure of transac ons between the Company and related par es (` in Lacs)
Par culars Key Management Rela ves of Key Enterprise described Total
Personnel Management in ( c ) above
Personnel
31st 31st 31st 31st 31st 31st 31st 31st

March March March March March March March March
2017 2016 2017 2016 2017 2016 2017 2016
Remunera on to Key 545.64 485.74 - 545.64 480.27
Management Personnel
Rent, Maintenance and 0.53 0.53 1.44 1.44 88.43 100.46 90.40 102.27
Other Charges Payable
Salary Paid - 26.16 24.34 - 26.16 24.34
Reimbursement for SAP - - 61.47 42.35 61.47 42.35
maintenance
Interest received - - 286.67 550.35 286.67 550.35
Dividend Received - - 40.82 13.99 40.82 13.99
Balance as on 31st March
- Investments - - 55.41 55.41 55.41 55.41
- Security Deposit Given - - - 25.83 - 25.83
- Inter Corporate Deposit - - - 272.00 - 272.00
- Interest receivable on ICD - - - 34.68 - 34.68
2.40 GRATUITY AND OTHER POST EMPLOYMENT BENEFIT

The Company‘s obliga on towards the gratuity fund and leave encashment fund are defined Benefit Plans.
The details of actuarial valua on are given below
Par culars 2016-17 2015-16

Leave Leave
Gratuity Gratuity
encashment encashment
Funded Funded Funded Funded
A Components of employer expenses
1. Current service cost 94.13 35.07 77.43 40.04
2. Interest cost 75.82 20.71 73.03 17.55
3. Expected return on plan assets (47.85) (19.80) (52.35) (20.67)
4. Actuarial losses/(gains) 40.06 (30.99) (40.81) 33.85
5. Total expenses recognized in the statement of profit and loss. 162.16 4.99 57.30 70.77
B Net asset/(liability) recognized in balance sheet
1. Present value of defined benefit obliga on 1,080.53 288.40 941.26 263.86
2. Fair value of plan assets 656.54 274.45 619.39 253.58
3. Net asset/(liability) recognized in balance sheet (423.99) (13.95) (321.87) (10.28)
C Change in defined benefit obliga on during the year
1. Present value of Defined Benefit Obliga on at the
941.26 263.86 879.52 173.77
beginning of period
88
(` in Lacs)
Par culars 2016-17 2015-16

Leave Leave
Gratuity Gratuity
encashment encashment
Funded Funded Funded Funded
2. Current service cost 94.13 35.07 77.43 40.04
3. Interest cost 75.82 20.71 73.03 17.55
4. Actuarial (gains)/losses 41.77 (30.50) (43.01) 33.09
5. Benefits paid (72.45) (0.74) (45.71) (0.59)
6. Present value of Defined Benefit Obliga on at the end of period 1,080.53 288.40 941.26 263.86
7. Actual Return on plan assets 49.55 20.29 50.16 19.91
D Change in fair value of assets
1. Plan assets at beginning of period 619.39 253.58 612.45 232.76
2. Expected return on plan assets 47.85 19.80 52.35 20.67
3. Actuarial gains/(loss) 1.70 0.49 (2.20) (0.76)
4. Actual Company contribu ons 60.05 1.33 2.50 1.50
5. Benefits paid (72.45) (0.74) (45.71) (0.59)
6. Plan assets at the end of period 656.54 274.46 619.39 253.58
E Actuarial assump ons

1. Mortality table (LIC) 2006-08 2006-08 2006-08 2006-08
(Ul mate) (Ul mate) (Ul mate) (Ul mate)
2. Discount rate (%) 7.50% 7.50% 8.00% 8.00%
3. Expected return on plan assets (%) 7.50% 7.50% 8.50% 8.50%
4. Rate of escala on in salary (per annum) 6.00% 6.00% 6.00% 6.00%
Present value of the defined benefit obliga on and fair value of the plan assets
Posi on at year end As at 31.03.2017 As at 31.03.2016 As at 31.03.2015 As at 31.03.2014 As at 31.03.2013

Gratuity Leave Gratuity Leave Gratuity Leave Gratuity Leave Gratuity Leave
Statutory Report
Obliga ons 1,080.53 288.40 941.26 263.86 879.52 173.77 716.14 158.56 601.72 138.05
Fair value of plan assets 656.54 274.45 619.39 253.58 612.45 232.76 573.27 197.08 516.39 174.98
Surplus/ (deficit) in (423.99) (13.95) (321.87) (10.28) (267.07) 58.99 (142.87) 38.52 (85.33) 36.93
the plan
Experience adjustment percentage
Par culars For the year ending

31.03.2017 31.03.2016 31.03.2015 31.03.2014 31.03.2013
Gratuity Leave Gratuity Leave Gratuity Leave Gratuity Leave Gratuity Leave
% of Opening Plan 4.61% 3.71% 7.90% 10.38% 4.45% 3.28% -8.00% -2.66% - -
Financial Report
Liabili es
% of Opening Plan 0.28% 0.19% -0.36% -0.33% -0.45% -0.17% -0.41% -0.41% - -
Assets
89
2.41 PAYMENT TO AUDITORS (` in Lacs)
As auditors
Audit fee 13.80 13.74
Tax audit fees 2.07 1.17
Branch auditors 1.60 1.83
In other capacity
For certification and consultancy
To statutory auditors 14.65 4.75
Out of pocket expenses to branch auditors 0.37 0.32
Total 32.49 21.81
2.42 EXPOSURE TOWARDS FOREIGN CURRENCY BORROWINGS NOT HEDGED BY A DERIVATIVE

INSTRUMENT OR OTHERWISE:
The newsprint prices generally move in tandem with landed cost of imported newsprint and also carry a risk
of rupee appreciation. To mitigate this risk of rupee appreciation, the Company has availed foreign currency
borrowings which are unhedged. The Company is having natural hedging for its’ foreign currency borrowings
from direct export and from sale of newsprint, being an import substitute product. Unhedged foreign currency
exposure by a derivative instrument or otherwise are given below:–
Par culars Currency Foreign Currency Amount

(in Million) (` in lacs)
31.03.17 31.03.16 31.03.17 31.03.16
USD 159.70 157.89 1,08,754.04 1,04,605.02
Amounts payable in foreign
EURO 3.49 2.30 2,417.23 1,731.34
currency
GBP 0.50 0.50 404.75 477.60
1,11,576.02 1,06,813.96
2.43 The Company’s business activity falls within a single primary business segment which is “Manufacture of
Paper and Paper Board” and the Company primarily operates in India and thus the disclosure requirements of
AS- 17 “Segment Reporting”, notified in the Companies (Accounting Standard) Rules, 2006 are not applicable.
2.44 The Company has entered into operating lease agreements for office space, godowns, and guest house. The
total charge to statement of profit and loss for the year on account of operating lease is ` 65.34 lacs. (` 35.42
lacs).
Lease rental are charged on the basis of agreed terms. No significant restrictions have been imposed by the
lessor on the leases. The leases can be renewed after completion of the lease term by mutually discussing
the renewal terms with the lessor.
2.45 DISCLOSURE ON SPECIFIED BANK NOTES (SBNs)

During the year, the Company had specified bank notes or other denomination notes 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:
90
Par culars SBNs (`) Other Total (`)
denomina on
notes (`)
Closing cash in hand as on 8-11-16 16,07,000.00 5,34,982.41 21,41,982.41
(+) Permi ed receipts - 38,57,377.00 38,57,377.00
(-) Permi ed payments - 30,31,490.06 30,31,490.06
(-) Amount deposited in Banks 16,07,000.00 2,940.00 16,09,940.00
Closing cash in hand as on 30-12-16 - 13,57,929.35 13,57,929.35
* For the purposes of this clause, the term ‘Specified Bank Notes’ shall have the same meaning provided in the
no fica on of the Government of India, in the Ministry of Finance, Department of Economic Affairs number S.O.
3407(E), dated the 8th November, 2016.
2.46 The Board of Directors has recommended final dividend of ` 1.20 per equity share of ` 2/- each and a final
dividend of ` 8.00 per preference share of ` 100/- each subject to approval of shareholders in ensuing Annual
General Meeting. Proposed dividend as above amounting to ` 1,215.98 lac for the year 2016-17 and dividend
distribution tax thereon, has not been recognized as liability as on 31.03.2017 in terms of revised Accounting
Standard – 4 ‘Contingencies and events occurring after Balance Sheet’ as notified by Ministry of Corporate
Affairs through Companies (Accounting Standards) Amendment Rules, 2016 dated 30.03.2016.
2.47 Previous year’s figures have been reclassified/ regrouped / rearranged wherever necessary.

S. K. Agrawal
Statutory Report
Financial Report
91
Notes
Glimpse of the 34th Annual General Meeting
held on 10th August, 2016
is Annual Report is available online at www.emamipaper.in
CAUTIONARY STATEMENT
Statements in the Directors’ Report describing the Company's objec ves, expecta ons or forecasts may be forward-looking within the meaning of
applicable securi es laws and regula ons. Actual results may differ materially from those expressed in the statement. Important factors that could
influence the Company's opera ons include global and domes c demand and supply condi ons affec ng selling prices of finished goods, input
availability and prices, changes in government regula ons, tax laws, economic developments within the country and other factors such as li ga on
and industrial rela ons.
Glimpse of the Shree Shree Jagannath Temple at
Emami Nagar, Balgopalpur, Balasore, Odisha
print@manjari.net
Emami Paper Mills Limited

CIN : L21019WB1981PLC034161
Unit No. 1, 15th Floor, ACROPOLIS
1858/1, Rajdanga Main Road, Kasba, Kolkata - 700107
The cover of this Report is printed on Emami GlamKot (Coated Bleached Board)

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Emami Paper Mills Limited

Annual Report 2016-17

Independent Auditors’ Report 60

Cover Photo : Overview of Mul layer Coated Board Plant

OUR CALLING CARD

Infrastructural development at Remuna college and local schools

Balvikash Kendra Organising mass marriage

Exercise notebook distribu on in local schools Health Check-up Camp

Shri R S Goenka (Standing)

Mr. P. S. Patwari Mr. J. Godbole Mr. S. Balasubramanian Mr. U. G. Bhat

Mr. J. K. Khetawat Mr. H. M. Marda Mrs. Richa Agarwal

Mr. S. K. Jain Mr. S. K. Khetan Mr. G. Saraf Mr. B. Choudhury

Mr. Ramesh Khun a

Emami Paper Mills Ltd.

receive investment and this made the decentraliza on

Emami Paper Mills Ltd.

Emami Paper Mills Ltd.

greenhouse gas emission.

Emami Paper Mills Ltd.

Emami Paper Mills Ltd.

Discussion & Analysis Report are set out as Annexure VI

Emami Paper Mills Ltd.

by recycling and reuse of treated process long before it requires a change.

ii) Registra on Date 26/09/1981

iii) Name of the Company EMAMI PAPER MILLS LIMITED

iv) Category / Sub-Category of Company limited by shares/ Indian Non-Government Company

Emami Paper Mills Ltd.

vii) Name, Address and Contact MAHESHWARI DATAMATICS PRIVATE LIMITED

SI. Name and Address of the CIN/GLN Holding/ % of shares Applicable

Emami Paper Mills Ltd.

(ii) Shareholding of Promoters

SI Shareholder’s Name Shareholding at the beginning Shareholding at the end %

9 Radheshyam Goenka 1161250 1.9195 NIL 1161250 1.9195 NIL NIL

(iii) Change in Promoters’ Shareholding (please specify, if there is no change)

Sl. Par culars Shareholding at the Cumula ve shareholding

Emami Paper Mills Ltd.

As on 31-03-2017 1000000 1.6529 1000000 1.6529

10. SPARK SECURITIES PRIVATE LTD

Emami Paper Mills Ltd.

3.. P. S. Patwari At the beginning of the year

5.. S. Balasubramanian At the beginning of the year

SI. Par culars of Remunera on Name of MD/WTD/ Manager Total

(b) Value of perquisites u/s 17(2) of the

(c) Profits in lieu of salary under sec on

Emami Paper Mills Ltd.

SI. Par culars of Remunera on Name of Directors Total

Total (2) NIL NIL NIL NIL NIL 1,30,000 1,30,000

SI. Par culars of Remunera on Key Managerial Personnel

VII. PENALTIES / PUNISHMENT/ COMPOUNDING OF OFFENCES:

Type Sec on of the Brief Details of Penalty Authority Appeal made, if

Emami Paper Mills Ltd.

Sl. Projects/ Ac vi es Sector Loca on Amount Amount Cumula ve Amount

2 Promo ng educa on, Literacy Balasore 30.00 36.86 36.86 36.86

Emami Paper Mills Ltd.

For MKB & Associates

Manoj Kumar Banthia

Emami Paper Mills Ltd.

Manoj Kumar Banthia

Name Designa on Percentage

Emami Paper Mills Ltd.

Non-Independent Director of the Company.

10 Mrs.Richa Agarwal 01505726 Non-Execu ve 4 Yes - - -

3. NUMBER OF BOARD MEETINGS CONDUCTED 4. DISCLOSURE OF RELATIONSHIP BETWEEN