Post on 31-Jul-2020
NEERAJPAPERMARKETINGLTD.
24thAnnualReport2019
LET’S GROW TOGETHER
24th Annual Report 2018-19
NPMLAn ISO 9001 : 2008 Company
NEERAJ PAPER MARKETING LTD
NEERAJPAPERMARKETINGLTD.
24thAnnualReport2019 1
Contents
Notice ...........................................................
Director’s Report ..........................................
MDAR & Annexure to Director’s Report ....
Corporate Governance Report ......................
Auditor’s Report (Standalone) ......................
Balance Sheet (Standalone) ...........................
P&L Account (Standalone) ...........................
Cash Flow Statement (Standalone) ...............
Notes on Accounts (Standalone) ...................
Proxy Form & Attendance ............................
Route Map for Venue 24th AGM .................
MANAGEMENT
BOARDOFDIRECTORSMr.DeepakGoel -- WholetimeDirectorMr.PraveenKumarGoel -- WholetimeDirectorMr.AmitAgarwal -- Non-ExecutiveDirectorMr.ShubhakarPathak -- IndependentDirectorMr.AnkurSangal -- IndependentDirectorMs.Sonal -- IndependentDirector
COMPANYSECRETARYMs.MansiTaneja
CHIEFFINANCIALOFFICERMr.VipinKumarGoel
STATUTORYAUDITOR
M/s.RajeevSingal&Co.CharteredAccountantsMuzaffarnagar
BANKERS:
OrientalBankofCommerce EBlock,HarshaBhawan,ConnaughtPlaceDelhi-110001
REGISTRAR&SHARETRANSFERAGENTBeetalFinancial&ComputerServicesLtd.
rdBeetalHouse,3 Floor,99,MadangirNearDadaHarsukhdasMandir
NewDelhi-110062
CORPORATEIDENTIFICATIONNUMBER:L74899DL1995PLC066194
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24thAnnualReport2019
INDEX
v
v
v
v
v
v
v
v
v
v
v
Page
2-17
18-25
26-43
44-67
68-76
77
78-79
80
81-105
106-108
109
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24thAnnualReport2019 2
NOTICE
thNoticeisherebygiventhatthe24 AnnualGeneralMeetingoftheShareholdersoftheCompanywillbeheldonthMonday, 30 September, 2019atBipinChandraPalMemorialBhavan,A-81, ChittaranjanPark,NewDelhi-
110019at11.00A.M.totransactthefollowingbusinesses:
ORDINARYBUSINESS:
1. ToconsiderandadopttheAuditedBalanceSheetason31.03.2019andtheProfit&LossAccountfortheyearended31.03.2019togetherwiththeReportsofDirectors&Auditorsthereon.
2. ToappointaDirectorinplaceofMr.AmitAgarwal(DIN01336763),whoretiresbyrotationatthismeetingandbeingeligible,offerhimselfforreappointment.
SPECIALBUSINESS:
3. AppointmentofMs.NehaAgarwalasaNon-ExecutiveIndependentDirectoroftheCompany
Toconsiderandifthoughtfit,topass,thefollowingresolutionasaSpecialResolution:
“RESOLVED THAT pursuant to the provisions of Sections 149 and 152 readwith Schedule IV and otherapplicableprovisions, ifany,of theCompaniesAct,2013(“theAct”)andtheCompanies(AppointmentandQualificationofDirectors)Rules,2014asamended fromtime to timeand theapplicableprovisionsof theSecuritiesandExchangeBoardofIndia(ListingObligationsandDisclosureRequirements)Regulations,2015(''ListingRegulations'')(includinganystatutorymodification(s)orre-enactment(s)thereof,forthetimebeinginforce),Ms.NehaAgarwal(DIN:07143026),whomeetsthecriteriaforindependenceasspecifiedinSection149(6)oftheActandRegulation16(1)(b)ofListingRegulationsandhassubmittedadeclarationtothateffectandeligiblefortheappointment,beandisherebyappointedasaNon-ExecutiveIndependentDirectorofthe
thCompany,notliabletoretirebyrotation,toholdofficeforatermoffiveconsecutiveyearsw.e.f.30 September,th2019to29 September,2024.”
4. AppointmentofMs.PoojaBhardwajasaNon-ExecutiveIndependentDirectoroftheCompany
Toconsiderandifthoughtfit,topass,thefollowingresolutionasaSpecialResolution:
“RESOLVED THAT pursuant to the provisions of Sections 149 and 152 readwith Schedule IV and otherapplicableprovisions, ifany,of theCompaniesAct,2013(“theAct”)andtheCompanies(AppointmentandQualificationofDirectors)Rules,2014asamended fromtime to timeand theapplicableprovisionsof theSecuritiesandExchangeBoardofIndia(ListingObligationsandDisclosureRequirements)Regulations,2015(''ListingRegulations'')(includinganystatutorymodification(s)orre-enactment(s)thereof,forthetimebeinginforce),Ms.PoojaBhardwaj(DIN:05158206),whomeetsthecriteriaforindependenceasspecifiedinSection149(6)oftheActandRegulation16(1)(b)ofListingRegulationsandhassubmittedadeclarationtothateffectandeligiblefortheappointment,beandisherebyappointedasaNon-ExecutiveIndependentDirectorofthe
thCompany,notliabletoretirebyrotation,toholdofficeforatermoffiveconsecutiveyearsw.e.f.30 September,th2019to29 September,2024.”
5. Re-appointmentofMr.AnkurSangalasaNon-ExecutiveIndependentDirectoroftheCompany
Toconsiderandifthoughtfit,topass,thefollowingresolutionasaSpecialResolution:
“RESOLVED THAT pursuant to the provisions of Sections 149 and 152 readwith Schedule IV and otherapplicableprovisions, ifany,of theCompaniesAct,2013(“theAct”)andtheCompanies(AppointmentandQualification ofDirectors)Rules,2014 as amended from time to time and the applicable provisions of the
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24thAnnualReport2019 3
SecuritiesandExchangeBoardofIndia(ListingObligationsandDisclosureRequirements)Regulations,2015(''ListingRegulations'')(includinganystatutorymodification(s)orre-enactment(s)thereof,forthetimebeinginforce),Mr.AnkurSangal(DIN:01095679),whowasappointedasanIndependentDirectoroftheCompanyatthe
th thAnnualGeneralMeetingheldon30 September,2014andwhoholdsofficeasanIndependentDirectorupto29 September,2019andwhomeetsthecriteriaforindependenceasspecifiedinSection149(6)oftheActandRegulation16(1)(b)ofListingRegulationsandhassubmittedadeclarationtothateffectandeligibleforthere-appointment,beandisherebyre-appointedasaNon-ExecutiveIndependentDirectoroftheCompany,notliable
th thtoretirebyrotation,toholdofficeforasecondtermoffiveconsecutiveyearsw.e.f.30 September,2019to29 September,2024.”
6. ReappointmentofMr.DeepakGoel(DIN00200527)asWholeTimeDirectorofthecompany
Toconsiderandifthoughtfit,topasswithorwithoutmodification(s),thefollowingResolutionasaSpecialResolution:
“RESOLVEDTHATpursuanttotheprovisionsofSections196,197,203readwithScheduleVandallotherapplicable provisions of the Companies Act, 2013 and Companies (Appointment and Remuneration ofManagerialPersonnel)Rules,2014(includinganystatutorymodification(s)orre-enactmentthereofforthetimebeinginforce,approvaloftheCompanybeandisherebyaccordedtothere-appointmentofShriDeepakGoel
th(DIN00200527)asWholeTimeDirectoroftheCompany,foraperiodof3(Three)yearswitheffectfrom13 August2019,onthetermsandconditionsincludingremunerationassetoutintheresolution:
RESOLVEDFURTHERTHATreappointmentofShriDeepakGoel,shallnotbesubjecttoretirementbyrotationduringhistenureasWholeTimeDirector.
RESOLVEDFURTHERTHATMr.DeepakGoel shall be paid salary of Rs. 1,50,000/- (RupeesOne Lac FiftyThousand only) permonth;maximumuptoRs. 5,00,000/- ( Rupees Five LacsOnly) permonth asmay bedeterminedbytheBoardofDirectorsofthecompanyfromtimetotimewithintheoverallceilingprescribedunderScheduleVoftheCompaniesAct,2013.
RESOLVEDFURTHERTHATthesaidremunerationbepaid/extendedtoMr.DeepakGoel,WholeTimeDirectoras minimum remuneration in the event of there being loss or inadequacy of profits; provided that theremuneration shall bewithin theoverall ceilingprescribedunder Section II ofPart II of ScheduleVof theCompaniesAct,2013.
RESOLVEDFURTHERTHATtheBoardbeandisherebyauthorisedtodoallsuchacts,deeds,mattersandthingsandtakeallsuchstepsasmaybenecessary,properorexpedienttogiveeffecttothisresolution.”
7. ReappointmentofMr.PraveenKumarGoel(DIN00014638)asWholeTimeDirectorofthecompany
Toconsiderandifthoughtfit,topasswithorwithoutmodification(s),thefollowingResolutionasaSpecialResolution:
“RESOLVEDTHATpursuanttotheprovisionsofSections196,197,203readwithScheduleVandallotherapplicable provisions of the Companies Act, 2013 and Companies (Appointment and Remuneration ofManagerialPersonnel)Rules,2014(includinganystatutorymodification(s)orre-enactmentthereofforthetimebeinginforce,approvaloftheCompanybeandisherebyaccordedtothere-appointmentofShriPraveenKumar
thGoel(DIN00014638)asWholeTimeDirectoroftheCompany,foraperiodof3(Three)yearswitheffectfrom13 August2019,onthetermsandconditionsincludingremunerationassetoutintheresolution:
RESOLVEDFURTHERTHAT reappointmentofShriPraveenKumarGoel, shallbesubject toretirementbyrotationduringhistenureasWholeTimeDirector.
RESOLVEDFURTHERTHATMr.PraveenKumarGoelshallbepaidsalaryofRs.150,000/-(RupeesOneLacFiftyThousand only) permonth;maximumuptoRs. 5,00,000/- ( Rupees Five LacsOnly) permonth asmay be
NEERAJPAPERMARKETINGLTD.
24thAnnualReport2019 4
determinedbytheBoardofDirectorsofthecompanyfromtimetotimewithintheoverallceilingprescribedunderScheduleVoftheCompaniesAct,2013.
RESOLVEDFURTHERTHATthesaidremunerationbepaid/extendedtoMr.PraveenKumarGoel,WholeTimeDirectorasminimumremunerationintheeventoftherebeinglossorinadequacyofprofits;providedthattheremuneration shall bewithin theoverall ceilingprescribedunder Section II ofPart II of ScheduleVof theCompaniesAct,2013.
RESOLVEDFURTHERTHATtheBoardbeandisherebyauthorisedtodoallsuchacts,deeds,mattersandthingsandtakeallsuchstepsasmaybenecessary,properorexpedienttogiveeffecttothisresolution.”
ByOrderoftheBoardForNEERAJPAPERMARKETINGLIMITED
Sd/-MANSI
(COMPANYSECRETARY)
THDATED:13 AUGUST2019
PLACE:DELHI
NEERAJPAPERMARKETINGLTD.
24thAnnualReport2019 5
EXPLANATORYSTATEMENTINRESPECTOFTHESPECIALBUSINESSPURSUANTTOTHESECTION102OFTHE
COMPANIESACT,2013
ITEMNO.3&4
Mr.ShubhakarPathakandMs.SonalwhowereappointedasIndependentDirectorsoftheCompanyforthetermoffiveth thconsecutiveyearswitheffectfrom30 September2014.Thesaidtermwillbecompletedon30 September2019,and
theyhaveexpressedtheirinabilitytocontinueasIndependentDirectorfortheSecondterm.
PursuanttotheprovisionsofSection149oftheCompaniesAct,2013(“theAct”)readwiththeArticlesofAssociationof
theCompany andpursuant to the recommendationof theNomination andRemunerationCommittee, theBoardofthDirectorsoftheCompanyattheirmeetingheldon13 August2019approveandrecommendtheappointmentofMs.Neha
Agarwal(DIN:07143026) 05158206andMs.PoojaBhardwaj(DIN: )astheNon-ExecutiveIndependentDirectorofthe
CompanytoholdofficeasaNon-ExecutiveIndependentDirectoroftheCompanyforafirsttermoffiveconsecutiveyears
w.e.f th th30 September,2019to29 September,2024.”
Thebriefprofileandotherdetailsof Ms.PoojaBhardwajrequiredasperRegulation36(2)oftheMs.NehaAgarwaland
ListingRegulationsandSecretarialStandard-2areprovidedinAnnexuretothisNotice.
TheCompanyhasreceiveddeclarationofindependencefromtheproposeddirectorsconfirmingthattheymetthecriteria
ofindependenceasspecifiedinSection149(6)oftheActandRegulation16(1)(b)theListingRegulationsandthatthey
arenotawareofanycircumstanceorsituation,whichexistormaybereasonablyanticipated,thatcouldimpairorimpact
theirabilitytodischargedutieswithanobjectiveindependentjudgmentandwithoutanyexternalinfluence.TheBoard
afterassessingveracityofthesameisoftheopinionthattheyfulfillstheconditionsforappointmentasanIndependent
DirectorasspecifiedintheCompaniesAct,2013andRulesmadethereunderandtheListingRegulationsandtheyare
independentofthemanagement.Further, andMs.PoojaBhardwajarenotdisqualifiedtoactasDirectorMs.NehaAgarwal
oftheCompany.TheyhadalsogivenadeclarationthattheyarenotdebarredfromholdingtheofficeofDirectorbyvirtue
ofanySEBIorderoranyothersuchauthority.
The letters of appointment of both setting out the terms and conditions of the said appointment are available for
inspectionattheRegisteredOfficeoftheCompanyonalldaysexceptSundaysorPublicholidaysbetween2.00p.m.to4.00
p.m.uptothedateoftheAGMandalsoattheAGM.
Pursuant to theprovisionsofSection149of theAct readwithSchedule IVof theAct,appointmentof Independent
DirectorsshallbeapprovedbythemembersoftheCompany.
TheBoardrecommendstheSpecialResolutionsetoutinItemNo.3&4oftheNotice,forapprovalofthemembersofthe
Company.
NoneoftheDirectorsandKeyManagerialPersonneloftheCompanyandtheirrelatives,excepttheappointeesandtheir
relativesareconcernedorinterested,financiallyorotherwise,inthesaidresolution.
ITEMNO.5
AttheAnnualGeneralMeeting(AGM)heldon30thSeptember,2014,Mr.AnkurSangal(DIN:01095679 wasappointedas),
aNon-ExecutiveIndependentDirectoroftheCompanyforafirsttermof5consecutiveyearsi.e.upto29thSeptember,
2019.
Mr.AnkurSangalisassociatedwiththeCompanyfrompasteightyearsasDirectoroftheCompany.Heparticipatesin
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24thAnnualReport2019 6
various discussions and provides his valuable suggestions to the Board and promotes effective participation of all
Directorsinthemeetings.Hisrichknowledge,skills,wideexperienceandcontributionshaveimmenselybenefitedthe
Company.
Mr.AnkurSangal,aged38years,isfitandcapableofdischarginghisdutiesasIndependentDirectoroftheCompany.
Consideringall theaforesaid factorsandon thebasisof reportofperformanceevaluationofMr.AnkurSangal, the
NominationandRemunerationCommitteerecommendedtotheBoardthathiscontinuedassociationwillimmensely
benefittheCompany.PursuanttotherecommendationofNRCandreportofperformanceevaluationandinordertoreapthbenefitsofhisrichandvariedexperience,theBoardatitsmeetingheldon13 August2019approvedandrecommended
re-appointmentofMr.AnkurSangal(DIN:01095679),asaNon-ExecutiveIndependentDirectoroftheCompanyfora
secondtermoffiveconsecutiveyearswitheffectfrom30thSeptember,2019to29thSeptember,2024.
Mr.AnkurSangalhasgivenconsentforthesaidre-appointmentandheisnotdisqualifiedfrombeingre-appointedasa
directorof theCompanyunderSection164of theCompaniesAct,2013(''Act'').Further, theCompanyhasreceived
declarationofindependencefromMr.AnkurSangalconfirmingthathemeetsthecriteriaofindependenceasspecifiedin
Section 149 (6) of the Act and Regulation 16 (1) (b) of SEBI (Listing Obligations and Disclosure Requirements)
Regulations,2015(''ListingRegulations'')andthatheisnotawareofanycircumstanceorsituation,whichexistormaybe
reasonablyanticipated,thatcouldimpairorimpacthisabilitytodischargehisdutieswithanobjectiveindependent
judgmentandwithoutanyexternalinfluence.
TheBoardafterassessingveracityofthesameisoftheopinionthathefulfillstheconditionsforappointmentasan
IndependentDirectorasspecifiedintheCompaniesAct,2013andrulesmadethereunderandtheListingRegulationsand
heisindependentofthemanagement.Mr.AnkurSangalhasalsogivenadeclarationthatheisnotdebarredfromholding
theofficeofDirectorbyvirtueofanySEBIorderoranyothersuchauthority.
ThedetailsofMr.AnkurSangalrequiredunderRegulation36(2)oftheListingRegulationsandSecretarialStandard-2are
providedinAnnexuretotheNotice.Thedraftletterofre-appointmentofMr.AnkurSangalsettingoutthetermsand
conditionsofthesaidre-appointmentisavailableforinspectionattheRegisteredOfficeoftheCompanyonalldaysexcept
SundaysorPublicholidaysbetween2.00p.m.to4.00p.m.uptothedateoftheAGMandalsoattheAGM.
PursuanttotheprovisionsofSection149(10)oftheAct,anindependentdirectorshallholdofficeforatermuptofive
consecutiveyearsontheBoardofacompany,butshallbeeligibleforre-appointmentonpassingofaspecialresolutionby
thecompany.
TheBoardofDirectorsrecommendstheresolutionassetoutinItemNo.5oftheNoticeforapprovalofmembersofthe
CompanybywayofSpecialResolutionaspertherequirementofCompaniesAct,2013.
NoneoftheDirectorsandKeyManagerialPersonneloftheCompanyandtheirrelativesexceptMr.AnkurSangalandhis
relativesareconcernedorinterested,financiallyorotherwise,inthesaidresolution.
ITEMNO.6
Mr.DeepakGoelistheDirectoroftheCompanyandholdingthepositionofdirectorsinceincorporationinthecompany.
HeisholdingthepositionofWholetimedirectorofthecompanysince2008.Heishavingextensiveexperienceinareaof
Finance,Accounts,generalmanagementandoperationalaspectsoftheCompany.Consideringhiscontributiontothethgrowthofthecompany,theBoardofDirectorsintheirmeetingheldon13 August2019,ontherecommendationofthe
Nomination&RemunerationCommittee,recommendthere-appointmentofMr.DeepakGoelasWholeTimeDirectorofththeCompany,foraperiodof3(Three)yearswitheffectfrom13 August2019,onthetermsandconditionsincluding
remunerationassetoutintheresolutionwithintheoveralllimitslaiddownunderScheduleVoftheCompaniesAct,2013.
AsrequiredundertheAct,furtherparticularspertainingtotheCompanyandtheappointeearesetouthereinafter.
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24thAnnualReport2019 7
(INRinLacs) 31.03.2018 31.03.2017NetSale/IncomefromOperations 32858.26 37242.10
OtherIncome 38.70 22.66
TotalExpenditure 32727.62 37151.36ProfitbeforeFinanceCharges&Depreciation
1122.70 1080.97
FinanceCharges 931.10 940.92Depreciation&Amortization 32.26 26.55ProfitBeforeTaxafterexceptionalitems (157.25) 113.40ProvisionforTax 52.70 38.43ProfitAfterTax (209.95) 74.97Paid-UpShareCapital 1100 1100Reserve&Surplus 1311.63 1529.59
I.GeneralInformation
(a)NatureofIndustry
AtpresentthecompanyisengagedinsaleofpaperoncommissionbasisandintradingbusinessofpaperandSteel.The
companyisdealingintradingbusinessofdifferenttypesofpapersuchasKraftPaper,DuplexBoard,PosterPaper,
writingprintingpaperetc.
(b)Dateorexpecteddateofcommencementofcommercialproduction
Thecompanycommencedbusinesson13.04.1995
(c)Incaseofnewcompanies,expecteddateofcommencementofactivitiesasperprojectapprovedbyfinancial
institutionsappearingintheprospectus.
Notapplicable
(d)Financialperformancebasedonthegivenindicators.
Pastperformanceoflasttwoyearsaregivenbelow:
(f)ForeignInvestmentsorcollaboratorsifany:
NotApplicable
II.Informationabouttheappointees
Mr.DeepakGoel
(a)NatureofExpertise
Mr.DeepakGoelhasgoodmarketingaswellasadministrativeskill.Heisactivelyengagedintherunningofexisting
business of the company since a long time. He has extensive experience in area of Finance, Accounts, general
managementandoperationalaspects
(b)PastRemuneration
TheremunerationdrawnbyMr.DeepakGoelastheWholeTimeDirectoroftheCompanyduringthefinancialyearstended31 March,2019,hasbeenmentionedintheReportofBoardofDirectorsonCorporateGovernance.
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24thAnnualReport2019 8
(c)Recognitionorawards
None
(d)Jobprofileandhissuitability:
Subjecttothesuperintendence,controlanddirectionoftheBoard,Mr.DeepakGoelwillmanageandsuperintendthe
businessaffairsandpropertiesoftheCompanyanddoallsuchlawfulactsandthingsinrelationtosuchmanagement
andsuperintendenceasheshallthinkfitandreasonable.
(e)Remunerationproposed
AsmentionedinResolution.
(f)ComparativeRemunerationprofilewithrespecttoindustry,sizeoftheCompany,profileofthepositionand
person(incaseofexpatriatestherelevantdetailswouldbew.r.t.thecountryofOrigin.)
TheremunerationstructureofMr.DeepakGoelisnothigherthanwhatisdrawnbyhispeersincomparableCompanies.
(g) Pecuniary relationship directly or indirectly with the Company, or relationship with the managerial
personnel,ifany;
Mr.DeepakGoelbeingapromoterwillnotbeentitledtoremunerationunderanyotherhead.Heisnotrelatedtoany
otherdirectorintheCompany.
(h)OtherListedEntiiesinwhichheholdsdirectorshipandmembershipinCommitteesofBoard
None
III.OtherInformation:(i)ReasonofLossorinadequateprofit
SincetheCompanyisengagedintradingofpaperandpaperproductsandduetomarketvariationstheprofitsofthecompanyarenotadequatetopaytheremunerationtotheDirectorsasperstandards.
(ii)StepstakenorproposedtobetakenforimprovementThecompanyisveryconfidenttocontinuetoachieveasustainedgoodperformanceandadequateprofitsintheyearsaheadandcontinuouslytryingtoincreaseproductivitybycapturingnewmarkets.
(iii)ExpectedincreaseinproductivityandprofitsinmeasurabletermsTheCompanyhasbeenabletoachievesignificantincreaseinproductivityinitsbusiness,asevidencedbysignificantgrowthinall itsproductstrading.Basedupontheexpectedgrowthinthepaperbusiness, theCompanyisconfidentofreportingpositiveresultsgoingforward.ProductivityandprofitsoftheCompanyareexpectedtoincreaseby10%inthecomingyears.
Disclosures
(a)TheremunerationpackageofMr.DeepakGoelhasalreadybeenmentionedintheresolution.
(b)ThenecessarydisclosuresasrequiredundertheActhavealreadybeenmadeintheReportoftheBoardofDirectors
onCorporateGovernance.
TheBoardconsidersthathavingregardtothesignificantcontributionofMr.DeepakGoeltowardsremarkablegrowthof
operationalactivitiesoftheCompanyduringhiscurrenttenure,theappointmentofMr.DeepakGoelasWholetime
DirectoroftheCompanyforafurtherperiodofthreeyearsisfullyjustified.AssuchtheBoardcommendstheSpecial
Resolutionsetoutinitem6oftheNoticeconveningthemeetingfortheapprovaloftheShareholders.
Except theappointee,nootherDirector/KeyManagerialpersonnelnoranyrelativeofDirectororKeyManagerial
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(INRinLacs) 31.03.2018 31.03.2017NetSale/IncomefromOperations 32858.26 37242.10OtherIncome 38.70 22.66
TotalExpenditure 32727.62 37151.36ProfitbeforeFinanceCharges&Depreciation
1122.70 1080.97
FinanceCharges 931.10 940.92Depreciation&Amortization 32.26 26.55ProfitBeforeTaxafterexceptionalitems (157.25) 113.40ProvisionforTax 52.70 38.43ProfitAfterTax (209.95) 74.97Paid-UpShareCapital 1100 1100Reserve&Surplus 1311.63 1529.59
Personnelhaveanyconcernorinterestinthesaidresolution.
ITEMNO.7
Mr.PraveenKumarGoelistheDirectoroftheCompanyandholdingthepositionofdirectorsinceincorporationinthe
company.HeisholdingthepositionofWholetimedirectorofthecompanysince2008.Heishavingextensiveexperience
inareaofMarketingbusinessoftheCompany.Consideringhiscontributiontothegrowthofthecompany,theBoardofthDirectors in theirmeetingheldon13 August2019, on the recommendationof theNomination&Remuneration
Committee,recommendthere-appointmentofMr.PraveenKumarGoelasWholeTimeDirectoroftheCompany,forathperiodof3(Three)yearswitheffectfrom13 August2019,onthetermsandconditionsincludingremunerationasset
outintheresolutionwithintheoveralllimitslaiddownunderScheduleVoftheCompaniesAct,2013.
AsrequiredundertheAct,furtherparticularspertainingtotheCompanyandtheappointeearesetouthereinafter.
I.GeneralInformation
(a)NatureofIndustry
AtpresentthecompanyisengagedinsaleofpaperoncommissionbasisandintradingbusinessofpaperandSteel.The
companyisdealingintradingbusinessofdifferenttypesofpapersuchasKraftPaper,DuplexBoard,PosterPaper,
writingprintingpaperetc.
(b)Dateorexpecteddateofcommencementofcommercialproduction
Thecompanycommencedbusinesson13.04.1995
(c)Incaseofnewcompanies,expecteddateofcommencementofactivitiesasperprojectapprovedbyfinancial
institutionsappearingintheprospectus.
Notapplicable
(d)Financialperformancebasedonthegivenindicators.
Pastperformanceoflasttwoyearsaregivenbelow:
(f)ForeignInvestmentsorcollaboratorsifany:
NotApplicable
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II.Informationabouttheappointees
Mr.PraveenKumarGoel
(a)NatureofExpertiseMr.PraveenKumarGoelhasgoodmarketingaswellasadministrativeskill.Heisactivelyengagedinthemarketingbusinessofthecompanysincealongtime.Heisrunningofthisbusinessefficientlysincealongtime.Hehasgoodexperienceinthefieldofmarketingbusiness.
(b)PastRemuneration
TheremunerationdrawnbyMr.PraveenKumarGoelastheWholeTimeDirectoroftheCompanyduringthefinancialstyearended31 March,2019,hasbeenmentionedintheReportofBoardofDirectorsonCorporateGovernance.
(c)Recognitionorawards
None
(d)Jobprofileandhissuitability:
Subject to the superintendence, control and direction of the Board, Mr. Praveen Kumar Goel will manage and
superintendthebusinessaffairsandpropertiesoftheCompanyanddoallsuchlawfulactsandthingsinrelationtosuch
managementandsuperintendenceasheshallthinkfitandreasonable.
(e)Remunerationproposed
AsmentionedinResolution.
(f)ComparativeRemunerationprofilewithrespecttoindustry,sizeoftheCompany,profileofthepositionand
person(incaseofexpatriatestherelevantdetailswouldbew.r.t.thecountryofOrigin.)
TheremunerationstructureofMr.PraveenKumarGoelisnothigherthanwhatisdrawnbyhispeersincomparable
Companies.
(g) Pecuniary relationship directly or indirectly with the Company, or relationship with the managerial
personnel,ifany;
Mr.PraveenKumarGoelbeingapromoterwillnotbeentitledtoremunerationunderanyotherhead.Heisnotrelatedto
anydirectorinthecompany.
(h)OtherListedEntiiesinwhichheholdsdirectorshipandmembershipinCommitteesofBoard
None
III.OtherInformation:(i) ReasonofLossorinadequateprofit
SincetheCompanyisengagedintradingofpaperandpaperproductsandduetomarketvariationstheprofitsofthecompanyarenotadequatetopaytheremunerationtotheDirectorsasperstandards.
(ii)StepstakenorproposedtobetakenforimprovementThecompanyisveryconfidenttocontinuetoachieveasustainedgoodperformanceandadequateprofitsintheyearsaheadandcontinuouslytryingtoincreaseproductivitybycapturingnewmarkets.
(iii)ExpectedincreaseinproductivityandprofitsinmeasurabletermsTheCompanyhasbeenabletoachievesignificantincreaseinproductivityinitsbusiness,asevidencedbysignificantgrowthinall itsproductstrading.Basedupontheexpectedgrowthinthepaperbusiness, theCompanyisconfidentofreportingpositiveresultsgoingforward.
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ProductivityandprofitsoftheCompanyareexpectedtoincreaseby10%inthecomingyears.
Disclosures
(a)TheremunerationpackageofMr.PraveenKumarGoelhasalreadybeenmentionedintheresolution.
(b)ThenecessarydisclosuresasrequiredundertheActhavealreadybeenmadeintheReportoftheBoardofDirectors
onCorporateGovernance.
TheBoardconsidersthathavingregardtothesignificantcontributionofMr.PraveenKumarGoeltowardsremarkable
growthofoperationalactivitiesoftheCompanyduringhiscurrenttenure,theappointmentofMr.PraveenKumarGoel
asWholetimeDirectoroftheCompanyforafurtherperiodofthreeyearsisfullyjustified.AssuchtheBoardcommends
theSpecialResolutionsetoutinitem8oftheNoticeconveningthemeetingfortheapprovaloftheShareholders.
Except theappointee,nootherDirector/KeyManagerialpersonneloranyrelativeofDirectororKeyManangerial
Personnelhaveanyconcernorinterestinthesaidresolution.NoneofthepersonsspecifiedinSection102oftheCompaniesAct,2013,viz.,theDirectors,Manager,KeyManagerialPersonnel(s)andtheirrelativesareconcernedorinterestedintheaboveresolution.
IMPORTANTNOTES:
1. AMEMBERENTITLEDTOATTENDANDVOTEATTHEMEETINGISENTITLEDTOAPPOINTAPROXY/PROXIESTOATTENDANDVOTEINSTEADOFHIMSELF/HERSELF.SUCHAPROXY/PROXIESNEEDNOTBE A MEMBER OF THE COMPANY. A PERSON CAN ACT AS PROXY ONBEHALF OF MEMBERS NOTEXCEEDINGFIFTY(50)ANDHOLDINGINTHEAGGREGATENOTMORETHANTENPERCENT(10%)OFTHETOTALSHARECAPITALOFTHECOMPANY.
2. TheinstrumentofProxyinordertobeeffective,shouldbedepositedattheRegisteredOfficeoftheCompany,dulycompletedandsigned,notlessthan48hoursbeforethecommencementofthemeeting.AProxyformissent herewith. Proxies submitted on behalf of the companies, societies etc. must be supported by anappropriateresolution/authority,asapplicable.
3. The Securities and Exchange Board of India (SEBI) hasmandated the submission of Permanent AccountNumber (PAN)by everyparticipant in securitiesmarket.Membersholding shares in electronic formare,therefore,requestedtosubmitthePANtotheirDepositoryParticipantswithwhomtheyaremaintainingtheirdemataccounts.MembersholdingsharesinphysicalformcansubmittheirPANdetailstotheCompany.
4. DetailsunderListingRegulationsandRevisedSecretarialStandards-2onGeneralMeetings,inrespectoftheDirectors seekingappointment/re-appointmentat theAnnualGeneralMeeting, forms integralpartof thenotice.TheDirectorshavefurnishedtherequisitedeclarationsfortheirappointment/re-appointment.
5. ElectroniccopyoftheAnnualReportforFinancialYear2018-19isbeingsenttoallthememberswhoseemailIDs are registeredwith the Company/Depository Participants(s) for communication purposes unless anymemberhasrequestedforahardcopyofthesame.Formemberswhohavenotregisteredtheiremailaddress,physicalcopiesoftheAnnualReportforFinancialYear2018-19isbeingsentinthepermittedmode.
th6. ElectroniccopyoftheNoticeofthe24 AnnualGeneralMeetingoftheCompanyinteraliaindicatingtheprocessandmannerofe-votingalongwithAttendanceSlipandProxyFormisbeingsenttoallthememberswhoseemailIDsareregisteredwiththeCompany/DepositoryParticipants(s)forcommunicationpurposesunlessanymemberhasrequestedforahardcopyofthesame.Formemberswhohavenotregisteredtheiremail
thaddress,physicalcopiesofthenoticeofthe24 AnnualGeneralMeetingoftheCompanyinteraliaindicatingtheprocessandmannerofe-votingalongwithAttendanceSlipandProxyFormisbeingsentinthepermittedmode.
th7. MembersmayalsonotethattheNoticeofthe24 AnnualGeneralMeetingandtheAnnualReportforFinancialYear2018-19willalsobeavailableontheCompany'swebsite fortheirdownload.Thewww.neerajpaper.com
NEERAJPAPERMARKETINGLTD.
24thAnnualReport2019 12
physicalcopiesoftheaforesaiddocumentswillalsobeavailableattheCompany'sRegisteredOfficeinNewDelhi for inspection during normal business hours on working days. Even after registering for e-communication,membersareentitledtoreceivesuchcommunicationinphysicalform,uponmakingarequestforthesame,bypostfreeofcost.
8. TheRegisterofMembersandShareTransferRegisterswillremainclosedfrom23.09.2019to30.09.2019(Bothdaysinclusive).
9. BeetalFinancialandComputerServicesLimitedistheRegistrarandShareTransferAgentofthecompanyforbothphysicalandelectronicformofshareholdings.Allcommunicationsrelatingtosharesshouldbedirectlyaddressedto:
BeetalFinancial&ComputerServicesLtd.rdBeetalHouse,3 Floor,99,Madangir
NearDadaHarsukhdasMandirNewDelhi-110062
10. AlldocumentsreferredtointheaccompanyingNoticeareopenforinspectionattheregisteredofficeoftheCompanyduringbusinesshoursonalltheworkingdaysbetween11:00A.Mand1:00P.MuptothedateoftheMeeting.
11. TheMinistryofCompanyAffairshastakena“GreenInitiativeinCorporateGovernance”byallowingpaperlesscompliancebyCompaniesthroughelectronicmode.Weproposetosendfuturecommunication,inelectronicmodetothee-mailaddressprovidedbyyou.So,Shareholderswhosee–mailaddressisnotregisteredwithusarerequestedtopleasegetyouremailaddressregisteredwithus,sothatyourCompanycancontributetothesafetyofenvironment.
12. RegisterofDirectorsandKeyManagerialPersonnelandtheirshareholdingmaintainedunderSection170ofCompaniesAct,2013andRegisterofContractsorarrangementsinwhichdirectorsareinterestedmaintainedunderSection189oftheCompaniesAct,2013willbeavailableforinspectionbythemembersattheAnnualGeneralMeeting.
13. Votingthroughelectronicmeans
a. IncompliancewithprovisionsofSection108oftheCompaniesAct,2013andRule20oftheCompanies(ManagementandAdministration)Rules,2014,theCompanyispleasedtoprovidemembersfacilityto
thexercisetheirright tovoteat the24 AnnualGeneralMeeting(AGM)byelectronicmeansandthebusinessmaybetransactedthroughe-VotingServicesprovidedbyCentralDepositoryServices(India)Ltd.
b. Theinstructionsfore-votingareasunder:
E–VotingInstructions:-
Theinstructionsforshareholdersvotingelectronicallyareasunder:th th(i) Thevotingperiodbeginson27 September,2019at10.00A.Mandendson29 September,2019at5.00P.M.
Duringthisperiod,shareholdersoftheCompany,holdingshareseitherinphysicalformorindematerializedrdform,asonthecut-offdate(recorddate)of23 September,2019,maycasttheirvoteelectronically.Thee-
votingmoduleshallbedisabledbyCDSLforvotingthereafter.
(ii) Theshareholdersshouldlogontothee-votingwebsite .www.evotingindia.com
(iii) ClickonShareholders.
(iv) NowEnteryourUserID
a. ForCDSL:16digitsbeneficiaryID,
b. ForNSDL:8CharacterDPIDfollowedby8DigitsClientID,
c. MembersholdingsharesinPhysicalFormshouldenterFolioNumberregisteredwiththeCompany.
NEERAJPAPERMARKETINGLTD.
24thAnnualReport2019 13
(v) NextentertheImageVerificationasdisplayedandClickonLogin.
(vi) Ifyouareholdingsharesindematformandhadloggedonto andvotedonanearlierwww.evotingindia.com
votingofanycompany,thenyourexistingpasswordistobeused.
(vii) Ifyouareafirsttimeuserfollowthestepsgivenbelow:
(viii) Afterenteringthesedetailsappropriately,clickon“SUBMIT”tab.
(ix) MembersholdingsharesinphysicalformwillthendirectlyreachtheCompanyselectionscreen.However,
membersholdingsharesindematformwillnowreach'PasswordCreation'menuwhereintheyarerequiredto
mandatorilyentertheirloginpasswordinthenewpasswordfield.Kindlynotethatthispasswordistobealso
usedbythedematholdersforvotingforresolutionsofanyothercompanyonwhichtheyareeligibletovote,
providedthatcompanyoptsfore-votingthroughCDSLplatform.Itisstronglyrecommendednottoshareyour
passwordwithanyotherpersonandtakeutmostcaretokeepyourpasswordconfidential.
(x) ForMembersholdingshares inphysical form,thedetailscanbeusedonly fore-votingontheresolutions
containedinthisNotice.
(xi) ClickontheEVSNfortherelevant<CompanyName>onwhichyouchoosetovote.
(xii) Onthevotingpage,youwillsee“RESOLUTIONDESCRIPTION”andagainstthesametheoption“YES/NO”for
voting.SelecttheoptionYESorNOasdesired.TheoptionYESimpliesthatyouassenttotheResolutionand
optionNOimpliesthatyoudissenttotheResolution.
(xiii) Clickonthe“RESOLUTIONSFILELINK”ifyouwishtoviewtheentireResolutiondetails.
(xiv) After selecting the resolutionyouhavedecided tovoteon, clickon “SUBMIT”.A confirmationboxwillbe
displayed.Ifyouwishtoconfirmyourvote,clickon“OK”,elsetochangeyourvote,clickon“CANCEL”and
ForMembersholdingsharesinDematFormandPhysicalForm
PAN
Enteryour10digitalpha-numeric*PANissuedbyIncomeTaxDepartment(Applicablefor
bothdematshareholdersaswellasphysicalshareholders)
· Members who have not updated their PAN with the Company/Depository
Participantarerequestedtousethefirsttwolettersoftheirnameandthe8digitsof
thesequencenumberinthePANfield.
· Incasethesequencenumberislessthan8digitsentertheapplicablenumberof
0'sbeforethenumberafterthefirsttwocharactersofthenameinCAPITAL
letters.Eg.IfyournameisRameshKumarwithsequencenumber1thenenter
RA00000001inthePANfield.
EntertheDividendBankDetailsorDateofBirth(indd/mm/yyyyformat)asrecordedinyour
demataccountorinthecompanyrecordsinordertologin.
· Ifboththedetailsarenotrecordedwiththedepositoryorcompanypleaseenterthe
member id / folio number in the Dividend Bank details field as mentioned in
instruction(iv).
Dividend
BankDetails
ORDate
ofBirth
(DOB)
NEERAJPAPERMARKETINGLTD.
24thAnnualReport2019 14
accordinglymodifyyourvote.
(xv) Onceyou“CONFIRM”yourvoteontheresolution,youwillnotbeallowedtomodifyyourvote.
(xvi) Youcanalsotakeaprintofthevotescastbyclickingon“Clickheretoprint”optionontheVotingpage.
(xvii) IfademataccountholderhasforgottenthechangedpasswordthenEntertheUserIDandtheimageverification
codeandclickonForgotPassword&enterthedetailsaspromptedbythesystem.
(xviii) ShareholderscanalsocasttheirvoteusingCDSL'smobileappm-Votingavailableforandroidbased
mobiles.Them-VotingappcanbedownloadedfromGooglePlayStore.AppleandWindowsphoneusers
candownloadtheappfromtheAppStoreandtheWindowsPhoneStorerespectively.Pleasefollowthe
instructionsaspromptedbythemobileappwhilevotingonyourmobile.
(xix) NoteforNon–IndividualShareholdersandCustodians
· Non-Individualshareholders(i.e.otherthanIndividuals,HUF,NRIetc.)andCustodianarerequiredtologonto
www.evotingindia.comandregisterthemselvesasCorporates.
· A scanned copy of the Registration Form bearing the stamp and sign of the entity should be emailed to
helpdesk.evoting@cdslindia.com.
· AfterreceivingthelogindetailsaComplianceUsershouldbecreatedusingtheadminloginandpassword.The
ComplianceUserwouldbeabletolinktheaccount(s)forwhichtheywishtovoteon.
· Thelistofaccountslinkedintheloginshouldbemailedtohelpdesk.evoting@cdslindia.comandonapprovalof
theaccountstheywouldbeabletocasttheirvote.
· AscannedcopyoftheBoardResolutionandPowerofAttorney(POA)whichtheyhaveissuedinfavourofthe
Custodian,ifany,shouldbeuploadedinPDFformatinthesystemforthescrutinizertoverifythesame.
(I) Anyperson,whoacquiressharesoftheCompanyandbecomeMemberoftheCompanyafterdispatchofrdtheNoticeandholdingsharesasonthecut-offdate i.e.23 September,2019mayfollowthesame
instructionsasmentionedabovefore-Voting.
(ii) In case you have any queries or issues regarding e-voting, you may refer the Frequently AskedQuestions(“FAQs”)ande-votingmanualavailableat ,underhelpsectionorwritewww.evotingindia.comanemailto .helpdesk.evoting@cdslindia.com
(iii) Facilityforvotingbywayofpollingshallalsobemadeavailableatthemeetingandthemembersattendingthemeetingwhohavenotalreadycasttheirvotebye-votingshallbeabletoexercisetheirrightatthemeeting.
(XX) Mrs.ShaillyGoel,PracticingCompanysecretaryhasbeenappointedastheScrutinizertoscrutinizethee-votingprocessinafairandtransparentmanner.
(XXI) TheScrutinizershall,immediatelyaftertheconclusionofthevotingatthegeneralmeeting,firstcountthevotescastedattheMeetingandthereafterunblockthevotescastthroughremotee-Votingaswellasballotformsinthepresenceofatleasttwo(2)witnessesnotintheemploymentoftheCompanyandmakewithinaperiodnotexceedingthree(3)daysfromtheconclusionoftheAGM,aconsolidatedScrutinizer'sReportofthetotalvotescastinfavouroragainst,ifany,totheChairman,oranauthorized
NEERAJPAPERMARKETINGLTD.
24thAnnualReport2019 15
personbyhim,oftheCompany.
(XXII) The Results shall be declared after receiving the Consolidated Scrutinizer's Report from theScrutinizer.TheresultdeclaredshallbeplacedontheCompany'swebsitewww.neerajpaper.comandonthewebsiteofCDSLandcommunicatedtotheStockExchanges.
ByOrderoftheBoardForNEERAJPAPERMARKETINGLIMITED
Sd/-MANSI
(COMPANYSECRETARY)
THDATED:13 AUGUST2019
PLACE:DELHI
NEERAJPAPERMARKETINGLTD.
24thAnnualReport2019 16
Annexure-DetailsofProposedDirectors
3≤ỳ . Øỳ Name of Directors Parveen Kumar Goel Deepak Goel Ankur Sangal
1 Director Identification Number (DIN) 00014638 00200527 01095679
2 Date of Birth 02.07.1963 28.06.1963 28.08.1981
3 Permanent Account Number (PAN) AEPPG5274B AATPG8581B BCMPS2380C
4 $ °¥• ض ! ∞∞Ø©Æ¥≠ • Æ¥ ØÆ ¥®• " Ø°≤§ 09/03/1995 09/03/1995 09/04/2011
5 Experience in specific functional area 29 Yrs 30 Yrs 13 Years
6 Expertise in specific functional area
Shri Praveen Kumar Goel, is well
experienced person. He has good
marketing skill. He is actively
engaged in the marketing business of
the company since a long time.
Shri Deepak Goel, is well experienced
person. He has extensive experience in
area of Finance, Accounts, General
Management and Operational Aspects.
Mr. Ankur Sangal is experienced
person having wide knowledge of
Accounts and Finance.
7No. of equity shares held in the
Company (as on 31st March, 2014)1,17,000 11,000 NIL
8 Qualification Graduate Graduate Master in Computer Application
9 List of other Directorships1. CORAL MINERALS PRIVATE
LIMITEDNIL 1. URS CERTIFICATION LIMITED
2.URS PRODUCTS AND TESTING
PRIVATE LIMITED
3.ALGI ASSESSMENT INDIA
PRIVATE LIMITED
4. URS INSPECTION (INDIA)
PRIVATE LIMITED
5. URS VERIFICATION PRIVATE
LIMITED
6. AGARWAL DUPLEX BOARD
MILLS LIMITED
10Membership/Chairman of Committees
of the other CompaniesNIL NIL
1. Chairman- Audit Committee-
Agarwal Duplex Board Mills Ltd
2. Member- Nomination and
Remuneration Committee- Agarwal
Duplex Board Mills Ltd
11Relationships, if any, between
Directors inter se- - -
Date of Appointment on the Board
Sr. No.
NEERAJPAPERMARKETINGLTD.
24thAnnualReport2019 17
Amit Agarwal Pooja Bhardwaj Neha Agarwal
01336763 05158206 07143026
01.07.1973 16.10.1980 1/26/1988
ACCPA1463F ARUPK1321M BGOPA1745B
09/03/1995 30/09/2019 30/09/2019
17 Yrs 8 Yrs 5 yrs
Shri Amit Kumar, has good
marketing & administrative skill.
He is actively engaged in the
marketing business.
Ms. Pooja Bhardwaj,being a
Company Secretary has
legal and secretarial
experience having wide
knowledge of corporate
laws.
Ms Neha Agarwal is experienced
person having acounting and
technical knowledge
NIL NIL NIL
Graduate Company Secretary Master in Computer Application
1. BINDAL INDUSTRIES
LIMITED
1. Agarwal Duplex Board
Mills Ltd1. Tehri Pulp and Paper Limited
2. BINDAL ROLLING MILLS
LIMITED 2. Bindals Papers Mills Limited
3. BINDAL PULP AND
PAPERS PRIVATE LIMITED
4. BRINA GOPAL TRADERS
PVT. LTD.
5. SHAKUMBHRI PULP AND
PAPER MILLS LIMITED
NIL
Member- Nomination and
Remuneration Committee-
Agarwal Duplex Board
Mills Ltd
1.Member- Nomination and
Remuneration Committee and
Audit Committee- Bindals Papers
Mills Limited
2. Member- Nomination and
Remuneration Committee and
Audit Committee- Tehri Pulp and
Papers Limited
- - -
Sr. No. Name of Directors
1 Director Identification Number (DIN)
2 Date of Birth
3 Permanent Account Number (PAN)
4 Date of Appointment on the Board
5 Experience in specific functional area
6 Expertise in specific functional area
7No. of equity shares held in the Company (as on
31st March, 2014)
8 Qualification
9 List of other Directorships
10Membership/Chairman of Committees of the
other Companies
11 Relationships, if any, between Directors inter se
NEERAJPAPERMARKETINGLTD.
24thAnnualReport2019 18
(INRinLacs) CURRENTYEAR PREVIOUSYEAR 31/03/2019 31/03/2018
NetSale/IncomefromOperations 25220.46 32858.26OtherIncome 13.30 28.70
TotalIncome 25233.76 32886.96ProfitbeforeFinanceCharges,Depreciation&Tax671.67 1122.70FinanceCharges 505.01 931.10
Depreciation 37.89 32.26ProfitBeforeTaxbeforeexceptionalitems 128.77 159.34Exceptionalitems 45.68 316.59ProfitBeforeTaxafterexceptionalitems 83.09 (157.25)ProvisionforTax 49.31 52.70ProfitAfterTax 33.78 (209.95)
BalanceofProfitBroughtForward 391.42 601.37Balanceavailableforappropriation 425.20 391.42ProposedDividendonequityshares - -TaxonproposedDividend - -TransfertoGeneralReserve - -Surpluscarriedtonextyear’saccount 425.20 391.42EarningPerShare(EPS)-BasicDiluted
0.31
-1.91-1.91
DIRECTORSREPORT
DearMembers,
thYourdirectorshavepleasureinpresentingyoutheir24 AnnualReportonthebusinessandoperationsofthecompanysttogetherwiththeAuditedFinancialStatementoftheCompanyfortheyearended31 March2019.
FINANCIALRESULTS(ASPERINDAS):
DIVIDEND:Ascompanyrequiredfundsforbusinessandgrowth,noDividendisrecommendedfortheyearunderreview.
TRANSFEROFUNCLAIMEDDIVIDENDTOINVESTOREDUCTIONANDPROTECTIONFUNDTheprovisionsofSection125(2)oftheCompaniesAct,2013donotapplyastherewasnodividenddeclaredandpaidlastyear.
OPERATIONALREVIEW:
TheTurnoverfortheFinancialYearendedon31/03/2019isRs.25,220.46LacsascomparedtoRs.32,858.26Lacslast
year.NetprofitofthecompanybeforeexceptionalitemsandtaxisRs.128.77Lacsascomparedto159.34Lacslastyear.
However,duringtheyearsomeexpendituresofexceptionalnaturehavearisen,whichisRs.45.68Lacsonaccountof
IncomeTaxliabilityandServiceTaxliabilityofearlieryears.Thecompanyisengagedinmarketingbusinessofvarietyof
paperlikeduplex,kraft,wastepaper,artpaper,posterpaperetc.Further,itisherebyinformedthatthecompanyhassatisfiedtheborrowingamountavailedfromtheBankofMaharashtra
thamountingtoRs.20Crandthesaidfacilitystandsclosedw.e.f.18 April2019.ThecompanyhasalsorepaidtheborrowingamountduetoBankofIndiaandhasappliedforNOC,howeveritisstillawaitedfromtheBank.
TheCompanyhastransferreditsentireholdingofequitysharesinassociatecompanies“BrinaGopalTradersPvtLtdandSwabhimanVyaparPvtLtd.Afterdisinvestment, thecompaniesno longerareassociatesofNeerajPaperMarketingLimited.
0.31
NEERAJPAPERMARKETINGLTD.
24thAnnualReport2019 19
FUTUREPROSPECTS
Accordingtothe“IndiaPaper&PaperProductsMarketbyApplication,byRawMaterial,Competition,Forecast&
Opportunities,2024”, thedemandfordomesticpaperinIndiarosefrom9.4milliontonnesinFY08to15.4million
tonnesinFY16.Despitethecontinuousgrowthintheindustry,percapitapaperconsumptioninthecountrystandsata
littleover14kg,whichisstillwellbelowtheglobalaverageof57kgandconsiderablybelow200kginNorthAmerica.
TheIndianpaper&paperproductsmarketisprojectedtogrowfrom$8.6billionin2018to$13.4billionby2024,
exhibitingaCAGRof7.8%during2019-2024.Growingmanufacturingsector,requirementofbetterqualitypackagingof
FMCGproductsmarketedthroughorganizedretailandthedemandfortheupstreammarketofpaperproducts,suchas
tissuepaper,filterpaper,teabags,lightweightonlinecoatedpaperandmedicalgradecoatedpaperareexpectedtodrive
thepaper&paperproductsmarketinIndiaincomingyears.
MATERIAL CHANGESAND COMMITMENT IF ANYAFFECTINGTHE FINANCIAL POSITIONOF THE COMPANY
OCCURREDBETWEENTHEENDSOFTHEFINANCIALYEARTOWHICHTHESEFINANCIALSTATEMENTSRELATE
ANDTHEDATEOFTHEREPORT
NomaterialchangesandcommitmentsaffectingthefinancialpositionoftheCompanyoccurredbetweentheendsofthe
financialyeartowhichthesefinancialstatementsrelateonthedateofthisreport.
However,thecompanyhassatisfiedtheborrowingamountavailedfromtheBankofMaharashtraamountingtoRs.20Crthandthesaidfacilitystandsclosedw.e.f.18 April2019.
SIGNIFICANTANDMATERIALORDERSPASSEDBYTHEREGULATORSORCOURTSORTRIBUNALSIMPACTING
THEGOINGCONCERNSTATUSANDCOMPANY'SOPERATIONSINFUTURE
Therearenosignificantandmaterialorderspassedbytheregulatorsorcourtsortribunalsimpactingthegoingconcern
statusandcompany'soperationsinfuture.
INTERNALCONTROLSYSTEMSANDTHEIRADEQUACY
TheCompanyhasanInternalControlSystem,commensuratewiththesize,scaleandcomplexityofitsoperations.TheInternalAuditDepartmentmonitorsandevaluatestheefficacyandadequacyofinternalcontrolsystemintheCompany,itscompliancewithoperatingsystems,accountingproceduresandpoliciesatall locationsof theCompanyanditssubsidiaries. Based on the report of internal audit function, process owners undertake corrective action in theirrespectiveareasandtherebystrengthenthecontrols.
DEPOSITS
TheCompanyhasneitheracceptednorrenewedanydepositsduringtheyearunderreview.Howeverunsecuredloansfrompromoters/directorsorrelativesofpromoters havebeenreceivedinpursuanceofthestipulationoflendingbankduringthefinancialyear2018-19.DetailsofthesamehasbeenmentionedintheNoteNo.37inthefinancialstatement
AUDITORANDAUDITOR'SREPORT:
(a) STATUTORYAUDITOR
M/s.RajeevSingal&Co.,CharteredAccountants,(FirmRegistrationNo.008692C)wereappointedasStatutoryAuditorsthofyourCompanyattheAnnualGeneralMeetingheldon28 September,2017,foratermoffiveconsecutiveyearstohold
ndofficefromtheconclusionofthe22 AnnualGeneralMeetinguntiltheconclusionof27thAnnualGeneralMeetingofthe
NEERAJPAPERMARKETINGLTD.
24thAnnualReport2019 20
Companytobeheldinthecalendaryear2022.AspertheprovisionsofSection139oftheCompaniesAct,2013,the
appointmentofAuditorswasrequiredtoberatifiedbyMembersateveryAnnualGeneralMeeting.
However, inaccordancewith theCompaniesAmendmentAct,2017,effectiveon7thMay,2018by theMinistryof
CorporateAffairs,theappointmentofStatutoryAuditorsisnotrequiredtoberatifiedateveryAnnualGeneralMeeting
fromnowonwards.
TheReportgivenbytheAuditorsonthefinancialstatementoftheCompanyispartofthisReport.Therehasbeennoqualification,reservation,adverseremarkordisclaimergivenbytheStatutoryAuditorsintheirReportonthefinancialstatementsfortheyearendedMarch31,2019.
(b) SECRETARIALAUDITOR
Pursuant to the provisions of Section 204 of the Companies Act, 2013 and the Companies (Appointment andRemuneration of Managerial Personnel) Rules, 2014, the Company has appointed Shailly Goel & Co., CompanySecretariestoundertaketheSecretarialAuditofthecompanyforthefinancialyear2018-19.TheSecretarialAuditReportisannexedherewithas'AnnexureI'.
TheBoardnotedtheobservationmadeintheSecretarialAuditreportandexplainedthatcompanyhascompliedwiththeprovisionsofalltheapplicablelawsexceptcompanydidnotsubmittheirfinancialresultsforthequarterendedMarch2018withinthestipulatedtimeperiodtotheBombayStockExchange(BSE).Inthisregard,theBoardwishestosubmitthatcompanyisregularinmakingthecompliancesandthisdefaultwasmadeduetothetechnicalerrorofthesystem¬intentionalonthepartofthecompany.Also,thecompanyhaspaidtheentirepenaltyamounttotheStockExchange.
(c) COSTAUDITOR
Asyourcompany is tradingcompany&due tonon–applicabilityofsection148andapplicableprovisionsof theCompaniesAct,2013andtheCompanies(CostRecordsandAudit)Rules2014,theCompanyisnotrequiredtoappointcostauditorforauditofcostrecords.
SUBSIDIARIES,JOINTVENTURESANDASSOCIATECOMPANIES
Ason31/03/2019,therewerenoassociatecompaniesoftheCompany.
Duringtheyear,theCompanyhaddisinvestedtheentireholdingofequitysharesinassociatecompanies“BrinaGopal
TradersPvtLtd.”and“SwabhimanVyapaarPvtLtd.”
Afterdisinvestment,thecompaniesarenolongerareassociatesofNeerajPaperMarketingLimited.
SHARECAPITAL
Thepaidupequitysharecapitalason31/03/2019wasRs.11,00,00,000.Furtherthecompanyhasnotboughtbackany
ofitssecurities,hasnotissuedanySweatEquityShares,hasnotprovidedanyStockOptionSchemetotheemployeesand
noBonusShareswereissuedduringtheyearunderreview.
EXTRACTOFANNUALRETURN
TheextractsofAnnualReturnpursuanttotheprovisionsofSection92(3)andSection134(3)(a)readwithRule12oftheCompanies(Managementandadministration)Rules,2014isfurnishedinAnnexureIIandisattachedtothisReportandisalsoavailableonthewebsiteofcompany.
Thecompanyhasfileditsannualreturnforthefinancialyearended31/03/2018&thesamehasbeenuploadedonthewebsiteoftheCompanyunderthelinkhttps://www.neerajpaper.com/Form_MGT_7.pdf
NEERAJPAPERMARKETINGLTD.
24thAnnualReport2019 21
COMPLIANCEWITHSECRETARIALSTANDARDS
TheCompanyisincompliancewiththeapplicableSecretarialStandardsissuedbytheInstituteofCompanySecretariesofIndiaandapprovedbytheCentralGovernmentunderSection118(10)oftheAct.
CONSERVATIONOFENERGY,TECHNOLOGYABSORPTION,FOREIGNEXCHANGEEARNINGANDOUTGOETC:
InformationonconservationofEnergy,Technologyabsorption,ForeignExchangeearningsandoutgorequiredtobedisclosedunderSection134oftheCompaniesAct,2013readwithCompanies(Accounts)Rules,2014areprovidedhereunder:
(A)ConservationofEnergy:
Alleffortsaremadetoconserveandoptimizeuseofenergywithcontinuousmonitoringandtoreduceitselectricityconsumptionduringthefinancialyear.
(B)Technologyabsorption:
Sincethecompanyisinvolvedinthetradingactivities,nospecificexpensesaremadetowardstechnologyabsorptionduringthefinancialyear.
(C)ForeignexchangeearningsandOutgo:
ThereisnoForeignexchangeearningsofthecompanyduringthefinancialyear.However,therewasoutflowofRs.107,898,921.42/-(USD1,582,554.49)duringtheyear.
DIRECTORSANDKEYMAGAERIALPERSONNEL:thDuringtheyearMs.VaishaliMathpal,CompanySecretaryandComplianceOfficeroftheCompanyhasresignedw.e.f8
October 2018 and further on the recommendation of Nomination And Remuneration Committee, the Board hasndappointedinitsmeetingheldon22 October2018,Ms.MansiasCompanySecretaryandComplianceOfficerofthe
Company.
ThetermofMr.DeepakGoelandMr.ParveenKumarGoel,holdingpositionofWholeTimeDirectoroftheCompanyisstendingon1 September2019,theBoardonrecommendationofNominationAndRemunerationCommittee,approved
andrecommendedtothemembersoftheCompany,reappointmentofMr.DeepakGoelandMr.ParveenKumarGoelasWholeTimeDirectorsoftheCompanyonthetermsspecifiedintheresolution.
ThefirsttermofMr.ShubhakarPathak(DIN:02371350)andMs.Sonal(DIN:06953152),IndependentDirectorsoftheCompanyisendingon29thSeptember,2019.TheyhaveexpressedtheirinabilitytocontinueasIndependentDirectorfortheSecondterm.PursuanttotherecommendationofNominationAndRemunerationCommittee,andtheBoardat
thitsmeetingheldon13 August2019,approvedandrecommendedtothemembersoftheCompany,appointmentofMs.NehaAgarwalandMs.PoojaBhardwajasIndependentDirectoroftheCompany,foratermoffiveconsecutiveyearsw.e.f.
th th30 September,2019to29 September,2024.Accordingly,specialresolutionfortheirappointmentisincludedintheNoticeofensuingAGMforapprovalofmembersoftheCompany.
thAlsothefirsttermofMr.AnkurSangal(DIN:01095679),IndependentDirectorisendingon29 September,2019andheiseligibleandprovidedhisconsenttobereappointedasIndependentDirectorforthesecondterm.Pursuanttothe
threcommendationofNominationAndRemunerationCommittee,theBoardatitsmeetingheldon13 August2019,approvedandrecommendedtothemembersoftheCompany,re-appointmentofMr.AnkurSangalasaNon-Executive
thIndependentDirectoroftheCompany,notliabletoretirebyrotationforasecondtermoffiveconsecutiveyearsw.e.f.30 thSeptember,2019to29 September,2024.Accordingly,specialresolutionforhisre-appointment is includedinthe
NoticeofensuingAGMforapprovalofmembersoftheCompany.
ThecompanyhasreceivedthedeclarationsfromtheproposedIndependentDirectorsconfirmingthattheymeetthe
NEERAJPAPERMARKETINGLTD.
24thAnnualReport2019 22
criteriaofindependenceasprovidedunderSection149(6)oftheCompaniesAct,2013andListingRegulations.
InaccordancewiththeprovisionsofCompaniesAct,2013andArticlesofAssociationoftheCompany,Mr.AmitAgarwal,ExecutiveDirectoroftheCompanyretirebyrotationattheensuingAnnualGeneralmeetingandbeingeligibleofferhimselfforre-appointment.
TheBoardrecommendstheresolutionsforyourapprovalfortheaboveappointments. .
a) BoardEvaluation
PursuanttotheprovisionsoftheCompaniesAct,2013andListingRegulation,theannualevaluationoftheperformanceoftheBoard,itsCommitteesandofindividualdirectorshasbeenmade.ThemannerinwhichtheevaluationhasbeencarriedouthasbeenexplainedintheCorporateGovernanceReport.
b) RemunerationPolicy
TheBoardhas,ontherecommendationoftheNomination&RemunerationCommitteeframedapolicyforselectionandappointment of Directors, SeniorManagement and their remuneration. The Remuneration Policy is stated in theCorporateGovernanceReport.
c) Meetings
DuringtheyearfiveBoardMeetingsandoneindependentdirectors'meetingwasheld.TheDetailsofwhicharegiveninCorporateGovernanceReport.TheprovisionsofCompaniesAct,2013andlistingagreementwereadheredtowhileconsideringthetimegapbetweentwomeetings.
VIGILMECHANISMPursuanttotheListingRegulationandasperSection177oftheCompaniesAct,2013thecompanyhasestablishedavigilmechanism/WhistleBlowerpolicyforthedirectorsandemployeestoreportgenuineconcernsorgrievancesaboutunethicalbehaviour,actualorsuspectedfraudorviolationofthecompany'sCodeofConductorEthicsPolicy.
Duringtheyearunderreview,thecompanyhasamendedtheWhistleBlowerPolicypursuanttotheamendmentmadeintheSEBI(PIT),Regulations,2015.
TheVigilMechanismPolicyhasbeenuploadedonthewebsiteoftheCompanyathttp://www.neerajpaper.com/index.php?page=vigil_mechanism.
COMMITEESOFTHEBOARD
a) AUDITCOMMITTEE
Ason31/03/2019,theAuditcommitteecomprisesofthefollowingdirectors:
Mr.AnkurSangal(Non-Executive,IndependentDirector) -ChairmanMs.Sonal(Non-Executive,IndependentDirector) -MemberMr.AmitAgarwal(Non-ExecutiveDirector) -Member
AlltherecommendationsmadebyAuditcommitteewereacceptedbytheBoard.
b) NOMINATIONANDREMUNERATIONCOMMITTEE
Ason31/03/2019,theNominationandRemunerationCommitteecomprisesofthefollowingdirectors:Mr.AnkurSangal(Non-Executive,IndependentDirector) -ChairmanMs.Sonal(Non-Executive,IndependentDirector) -Member
NEERAJPAPERMARKETINGLTD.
24thAnnualReport2019 23
Mr.AmitAgarwal(Non-ExecutiveDirector) -Memberc) STAKEHOLDERRELATIONSHIPCOMMITTEE:
Duringtheyear,Mr.AnkurSangal, IndependentDirectorof thecompanyappointedasmemberof theStakeholder
Relationship Committee in the BoardMeeting held on 13.02.2019 as required in Regulation 20 of SEBI (Listing
Obligations andDisclosure Requirements), Regulations, 2015 as amended and as on 31/03/2019 the committee
comprisedofthefollowingdirectorsasmembers:
Mr.AmitAgarwal(Non-ExecutiveDirector) -Chairman
Mr.DeepakGoel(WholeTimeDirector) -Member
Mr.AnkurSangal(Non-ExecutiveIndependentDirector) -Member
PARTICULARSOFLOANS,GUARANTEESORINVESTMENTSMADEUNDERSECTION186OFTHECOMPANIESACT,
2013
Therewerenoloans,guaranteesorinvestmentsmadebytheCompanyunderSection186oftheCompaniesAct,2013
duringtheyearunderreviewandhencethesaidprovisionisnotapplicable.
However, detail of guaranteeswhich is outstanding as on 31/03/2019 is provided in the Notes to the FinancialStatements.
PARTICULARSOFCONTRACTSORARRANGEMENTSMADEWITHRELATEDPARTIES
Allcontracts/arrangements/transactionsenteredbytheCompanyduringthefinancialyearwithrelatedpartieswere
in theordinarycourseofbusinessandonanarm's lengthbasis.Therearenomaterially significant relatedparty
transactionsmadebytheCompanywithPromoters,Directors,KeyManagerialPersonnelorotherdesignatedpersons
whichmayhaveapotentialconflictwiththeinterestoftheCompanyatlarge.
AllRelatedPartyTransactionsareplacedbeforetheAuditCommitteeandalsotheBoardforapproval.
Duringtheyearunderreview,thecompanyhasamendedthepolicyonRelatedPartyTransactionsasapprovedbytheBoardandisuploadedontheCompany'swebsiteunderthelinkathttps://www.neerajpaper.com/POLICY%20FOR%20RELATED%20PARTY%20TRANSACTION-2.pdf
ParticularsofcontractsorarrangementsortransactionsinFormAOC-2areattachedasAnnexureIII.
MANAGERIALREMUNERATIONDisclosureunderRule5ofCompanies(AppointmentandRemuneration)Rules,2014isattachedasAnnexureIV.
RISKMANAGEMENTPOLICYIn accordance with Companies Act, 2013 and listing Regulation, the Board members were informed about riskassessmentandminimizationproceduresafterwhichtheBoardformallyadoptedstepsforframing,implementingandmonitoringtheriskmanagementplanforthecompany.
Themainobjectiveofthispolicyistoensuresustainablebusinessgrowthwithstabilityandtopromoteapro-activeapproachinreporting,evaluatingandresolvingrisksassociatedwiththebusiness.Inordertoachievethekeyobjective,thepolicyestablishesastructuredanddisciplinedapproachtoRiskManagement,inordertoguidedecisionsonriskrelatedissues.
In today's challenging and competitive environment, strategies formitigating inherent risks in accomplishing thegrowthplansoftheCompanyareimperative.Thecommonrisksinteraliaare:Regulations,competition,Businessrisk,Investments,retentionof talentandexpansionof facilities.Businessrisk, inter-alia, further includes financialrisk,
NEERAJPAPERMARKETINGLTD.
24thAnnualReport2019 24
politicalrisk,fidelityrisk,legalrisk.
Asamatterofpolicy,theserisksareassessedandthecompanyhasnotidentifiedanyelementofriskwhichmaythreaten
theexistenceofthecompany.
CORPORATESOCIALRESPONSIBILITYAsperCompaniesAct,2013,provisionsofCorporateSocialResponsibilityarenotapplicabletothecompany.
DIRECTORS'RESPONSIBILITYSTATEMENT:IntermsofSection134(5)oftheCompaniesAct,2013,thedirectorswouldliketostatethat:
i) Inthepreparationoftheannualaccounts,theapplicableaccountingstandardshavebeenfollowed.
ii) ThedirectorshaveselectedsuchaccountingpoliciesandappliedthemconsistentlyandmadejudgmentsandestimatesthatwerereasonableandprudentsoastogiveatrueandfairviewofthestateofaffairsoftheCompanyattheendofthefinancialyearandoftheprofitorlossoftheCompanyfortheyearunderreview.
iii) ThedirectorshavetakenproperandsufficientcareforthemaintenanceofadequateaccountingrecordsinaccordancewiththeprovisionsofthisActforsafeguardingtheassetsoftheCompanyandforpreventinganddetectingfraudandotherirregularities.
iv) Thedirectorshavepreparedtheannualaccountsonagoingconcernbasis.
v) Thedirectorshadlaiddowninternalfinancialcontrolstobefollowedbythecompanyandthatsuchinternalfinancialcontrolsareadequateandwereoperatingeffectively.
vi) Thedirectorshaddevisedpropersystemtoensurecompliancewiththeprovisionsofallapplicablelawsandthatsuchsystemwereadequateandoperatingeffectively.
PARTICULARSOFEMPLOYEES
Duringtheyear,thereisnoemployeedrawingremunerationinexcessofthelimitsspecifiedunderCompaniesAct,2013andrulesmadethereunder.
However, the prescribed information of Employees as required under Section 134(3)(q) readwith Rule 5 of theCompanies(AppointmentandRemunerationofManagerialPersonnel)Rules,2014isattachedherewithasAnnexureV.
INTERNALCOMPLAINTCOMMITTEE
The Company has in place a Prevention of SexualHarassment Policy in linewith the requirements of the SexualHarassmentofWomenatWorkplace(Prevention,ProhibitionandRedressal)Act,2013.AnInternalCommitteehasbeen set up to redress complaints received regarding sexual harassment. All employees (permanent, contractual,temporary,trainees)arecoveredunderthispolicy.
Further,yourDirectorsstatethatduringtheyearunderreview,companyhascompliedwiththeprovisionsrelatingtoconstitutionof Internal ComplaintCommitteeunder the SexualHarassment ofWomenatWorkplace (Prevention,ProhibitionandRedressal)Act,2013andtherewerenocasesofsexualharassmentreportedtotheCompanypursuanttothesexualHarassmentofWomenatWorkplace(Prevention,ProhibitionandRedressal)Act,2013.
CORPORATEGOVERNANCEANDMANAGEMENTDISCUSSION&ANALYSISREPORTS
TheCorporateGovernanceandManagementDiscussion&AnalysisReport,whichformanintegralpartofthisReport,aresetoutasseparateAnnexure,togetherwiththeCertificatefromtheauditorsoftheCompanyregardingcompliance
NEERAJPAPERMARKETINGLTD.
24thAnnualReport2019 25
withtherequirementsofCorporateGovernanceasstipulatedintheListingRegulation.
ACKNOWLEGEMENT
YourDirectorstakethisopportunitytoconveytheirdeepsenseofgratitudeforvaluableassistanceandCo-Operation
extended to the Company by all valued Customers, Bankers and various departments of government and local
authorities.
YourDirectorsalsowishtoplaceonrecordtheirsincereappreciationforthevaluedcontribution,unstintedeffortsand
spiritofdedicationshownbytheemployees,officersandtheexecutivesatalllevelswhichcontributed,innosmall
measure,totheprogressandthehighperformanceoftheCompanyduringtheYearunderreview.
thDATED:13 AUGUST,2019PLACE:DELHI
Sd/-DEEPAKGOEL
(WHOLE-TIME-DIRECTOR)DIN:00200527
Sd/-PARVEENKUMARGOEL
(WHOLE-TIME-DIRECTOR)DIN:00014638
ByOrderoftheBoardForNEERAJPAPERMARKETINGLIMITED
NEERAJPAPERMARKETINGLTD.
24thAnnualReport2019 26
ANNEXURETODIRECTORSREPORT
MANAGEMENTDISCUSSION&ANALYSISREPORT
INDUSTRYSTRUCTUREANDDEVELOPMENT
PAPERINDUSTRY:
Paperandboardpackagingisdefinedasthewrappingandcontainmentofgoods&productsforprotection,distribution,
storageandsaleusingpaperasprimarymaterial.Thepaperandboardpackagingindustry,valuedat369$Billion,holds
thelargestsharei.e.43%ofthetotalglobalpackagingindustry,whichiscomposedofseveralmaterialssuchasplastic
packaging,metalpackaging,glasspackaging,paper&boardpackagingandothers.Fromabasicusageasaproduct
'safeguard' or a 'container', packaging todayhasbecomean indispensablemarketing tool and an integral part of a
product'slifecycle.
Thedemandforpackaginghasbeencontinuouslyincreasingonaccountofrisingdisposableincome,singleliving,onthe
golifestyleandconvenientpackaging.Moreover,theexplosivegrowthinecommerceoverthepastfewyears,mainlydue
tofasterdelivery,freeshippingandincreasinginternetpenetration,isthemajorfactorfuelingtheoverallgrowthofthe
paper&boardpackagingmarket.Furthermore,therecyclabilitypropositionofpaperaswellasgrowingenvironmental
consciousnessamongconsumers towards sustainablepackaging isdrawingheightened industryattention toentice
customers.Basedontheabovefactors,thepaperandboardpackagingmarketisgrowingatafastpaceandislikelyto
continuegrowingataCAGRof4.4%overtheforecastperiodfrom2018-22.Thisreportcoversexhaustiveanalysison
industrydynamics,marketsize,supplyanddemand,currenttrends/issues&challengesandenduserindustry.
Accordingtothe“IndiaPaper&PaperProductsMarketbyApplication,byRawMaterial,Competition,Forecast&
Opportunities,2024”, heIndianpaper&paperproductsmarketisprojectedtogrowfrom$8.6billionin2018to$13.4t
billionby2024,exhibitingaCAGRof7.8%during2019-2024.Growingmanufacturingsector,requirementofbetter
qualitypackagingofFMCGproductsmarketedthroughorganizedretailandthedemandfortheupstreammarketofpaper
products,suchastissuepaper,filterpaper,teabags,lightweightonlinecoatedpaperandmedicalgradecoatedpaperare
expectedtodrivethepaper&paperproductsmarketinIndiaincomingyears.Moreover,manyoftheexistingplayersare
increasingtheircapacitytomeetthegrowingdemand.However,highcostofproductionasaresultofunavailabilityand
highcostofrawmaterials,highcostofpower,concentrationofmillsinspecificareasonly,technologicalobsolescenceas
wellasenvironmentalchallengesaresomeofthefactorshamperingthemarketgrowth.
PAPER&PAPERPRODUCTSDEMAND
· India'sshareinthedemandforpaperacrosstheglobewereanalysedisgrowing,asthedomesticdemandis
increasingatasteadypace,whilethedemandinwesternnationsisshrinking.Notably,thedemandfordomestic
paperinIndiarosefrom9.4milliontonnesinFY08to15.4milliontonnesinFY16.Despitethecontinuousgrowth
intheindustry,percapitapaperconsumptioninthecountrystandsatalittleover14kg,whichisstillwellbelow
theglobalaverageof57kgandconsiderablybelow200kginNorthAmerica.
· TheIndianpaper&paperproductsmarketisprojectedtogrowfrom$8.6billionin2018to$13.4billionby2024,
exhibitingaCAGRof7.8%during2019-2024.
· Growingmanufacturingsector,requirementofbetterqualitypackagingofFMCGproductsmarketedthrough
organizedretailandthedemandfortheupstreammarketofpaperproducts,suchastissuepaper,filterpaper,tea
bags,lightweightonlinecoatedpaperandmedicalgradecoatedpaperareexpectedtodrivethepaper&paper
productsmarketinIndiaincomingyears.
TheIndianpaper&paperproductsmarkethasbeensegmentedintorawmaterial,applicationandregion.Basedonraw
NEERAJPAPERMARKETINGLTD.
24thAnnualReport2019 27
material,themarkethasbeencategorizedintowaste&recycledpaper,woodandagroresidue.Thewaste&recycled
papersegmentisexpectedtodominatethemarketduringforecastperiod,owingtogrowingconcernsaboutthecutting
downoftreesforproducingpulp.Further,basedonapplication,themarkethasbeenbifurcatedintowriting&printing
paper,paperboard&packaging,newsprintandspecialtypaper.
Amongtheapplicationsegments,thedemandforpaperboard&packagingisgrowingatthefastestpace,aspaperboard
&packagingcaterstoindustriesincludingFMCG,food&beverages,textilesandpharmaceutical.Thesegmentisalso
expectedtodominatethemarket,owingtofactorssuchasrisingurbanization,increasingpreferenceforready-to-eat
foodsandrequirementofbetter-qualitypackagingofFMCGproductsmarketedthroughorganizedretail.
Thepaper&paperproductsmarketinIndiahasbeensegmentedintoNorth,South,EastandWest.Westernregionisthe
leadconsumerofpaper&paperproductsacrossthecountry,onaccountofincreasingpaperconsumption,especially
FMCGproducts.
Thepapermillsuseavarietyofrawmaterialssuchaswood,bamboo,bagasse,recycledfiber,wheatstraw,riceandhusk.
Thegeographicallocationofthemilloftendeterminesthetypeofrawmaterialused.Mostmillsinthenorthernand
westernregionsofIndiadependheavilyonagriculturalresiduesandwastepaperastheirrawmaterial.Whilepulp&
paperproductioninsouthernandeasternregionsusewoodandbambooasrawmaterials.
OPPORTUNITIESANDTHREATS
ThecompetitivestrengthsandtheopportunitiesthatareavailabletotheIndianPaperIndustryare:
· Itislargeandgrowingdomesticpapermarketandpotentialforexport.
· fastgrowingcontemporaryprintingsector.
· Government'sthrustforimprovingeducationandliteracyintheCountry.
· availabilityofqualifiedtechnicalmanpowerwithcapabilitytodesign,buildandmanageworldscalepulpandpapermills.
· wellestablishedResearchandDevelopment(R&D)facilities/activitiesencouraginginnovation.
· potentialforcreationofsustainablerawmaterialbasethroughfarmplantations.
THREAT:
· Therearenothreatsanticipatedtowardsourbusinessbeingtradingbusinessofpaperexceptcompetition.
SEGMENT-WISE/PRODUCTWISEPERFORMANCE
Companyisengagedintradingofpaperandwastepaper.Duringtheyear–2018-19,turnoverofPaper,PaperBoardand
OtherPaperitemscontributedinthegrossturnoveroftheCompanywhichisasfollows
S.No Products Total(inLacs)
1 Duplex 8701.47
2 KraftPaper 7313.04
3 PaperWaste 5388.47
4 BindalFinePrint 350.5
5 ArtPaper 1430.96
6 PosterPaper 322.13
7 USSteamCoalInBulk 1076.71
8 Others 189.92
Revenuefromproducts
NEERAJPAPERMARKETINGLTD.
24thAnnualReport2019 28
OUTLOOK
Thecompanyutilizedthetotalcapitalarranged.Inadditiontothecorepapertrading,thecompanyalwaystryingto
exploretheopportunitiesinthosesectorwherethecompanycanincreasethevalueofstakeholders.Paper,PaperBoard
andOtherPaperitemscontributed100%inthegrossturnoveroftheCompany.
RISKSANDCONCERN
Anintegratedriskmanagementprocessisbeingadoptedbythecompanythatworkstowardstheevaluationofthe
associatedbusinessriskandenablesthecompanytosurviveinthecompetitiveenvironment.Intoday'schallengingand
competitiveenvironment,strategiesformitigatinginherentrisksinaccomplishingthegrowthplansoftheCompanyare
imperative.Thecommonrisksinteraliaare:Regulations,competition,Businessrisk,Investments,retentionoftalent
andexpansionoffacilities.Businessrisk,inter-alia,furtherincludesfinancialrisk,politicalrisk,fidelityrisk,legalrisk.
Asamatterofpolicy, theserisksareassessedandthecompanyhasnot identifiedanyelementofriskwhichmay
threatentheexistenceofthecompany.
INTERNALCONTROLSYSTEMANDADEQUACY
TheCompanyhasanInternalControlSystem,commensuratewiththesize,scaleandcomplexityofitsoperations.The
InternalAuditDepartmentmonitorsandevaluatestheefficacyandadequacyofinternalcontrolsystemintheCompany,
itscompliancewithoperatingsystems,accountingproceduresandpoliciesatall locationsoftheCompanyandits
subsidiaries. Based on the report of internal audit function, process owners undertake corrective action in their
respectiveareasandtherebystrengthenthecontrols.
TheAuditCommitteeofthecompanyalsoreviewstheinternalcontrolsystemprevalentateachleveloftheorganization
andpassesonitsrecommendationtothemanagementinrespectoftheareas,whichrequiresthecorrection.
DISCUSSIONONFINANCIALPERFORMANCEWITHRESPECTTOOPERATIONALPERFORMANCE
ThefinancialandoperativeperformanceisalreadyelaboratedinDirectorsReport.
HUMANRESOURCES
Thecompanycontinuouslyworksonthedevelopmentoftheemployeesatvariouslevels.Themanagementmakessure
that the employee morale and dedication remains high and that they contribute their fullest and best to the
organization.Therecreationalactivitieslikeseminars/vacationsareplannedfortheemployeesatregularintervals.As
on31/03/2019,theCompanyhas30employees.Industrialrelationsarecordialandsatisfactory.
KEYFINANCIALRATIOS
Thedetailsofchanges inKeyFinancialRatiosascompared to the immediatelyprevious financialyearalongwith
explanationsareasfollows:
NEERAJPAPERMARKETINGLTD.
24thAnnualReport2019 29
CHANGESINRETURNONNETWORTH
The return on networth for the financial year 2017-18 and for the financial year 2018-19, it is -9.03% and 1.2%
respectively.Thechangeinreturnonnetworthascomparedtotheimmediatelypreviousfinancialyearis-13.33and
reasonforchangeintheaboveisduetolowerinterestcostintheFY2018-19andsomeexpensesofexceptionalnature
arisingonaccountofIncomeTaxandServiceTaxliabilitiesofearlieryearsincurredintheFY2017-18
CAUTIONARYSTATEMENT
StatementsintheManagementDiscussionandAnalysisandintheDirectors'Report,describingthecompany'sobjectives,
projections and estimates, results may vary materially from those expressed or implied by the forward looking
statementsduetorisksoruncertaintiesassociatedtherewithdependinguponeconomicconditions,governmentpolicies
andotherincidentalfactors.Readersarecautionednottoplaceunduerelianceontheseforward-lookingstatements.
NEERAJPAPERMARKETINGLTD.
24thAnnualReport2019 30
CompaniesAct,2013andtherulesmadethereunder.
TheSecuritiesContracts(Regulation)Act,1956('SCRA')andtherulesmadethereunder.
TheDepositoriesAct,1996andtheRegulationsandBye-lawsframedthereunder.
Foreign Exchange Management Act, 1999 and the rules and regulations made thereunder to the extent ofForeign Direct Investment, Overseas Direct Investment and External Commercial Borrowings (ECB). NotApplicableduringtheAuditperiod
The followingRegulations andGuidelinesprescribedunder the Securities andExchangeBoardof IndiaAct,1992('SEBIAct'):-
(i)
(ii)
(iii)
(iv)
(v)
TheSecuritiesandExchangeBoardofIndia(SubstantialAcquisitionofSharesandTakeovers)Regulations,2011.TheSecuritiesandExchangeBoardofIndia(ProhibitionofInsiderTrading)Regulations,1992.TheSecuritiesandExchangeBoardofIndia(IssueofCapitalandDisclosureRequirements)Regulations,2009.NotApplicableduringtheAuditperiod TheSecuritiesandExchangeBoardofIndia(EmployeeStockOptionSchemeandEmployeeStockPurchaseScheme)Guidelines,1999.NotApplicableduringtheAuditperiodTheSecuritiesandExchangeBoardofIndia(IssueandListingofDebtSecurities)Regulations,2008.NotApplicableduringtheAuditperiodTheSecuritiesandExchangeBoardofIndia(RegistrarstoanIssueandShareTransferAgents)Regulations,1993regardingtheCompaniesActanddealingwithclient.TheSecuritiesandExchangeBoardofIndia(DelistingofEquityShares)Regulations,2009.NotApplicableduringtheAuditperiodTheSecuritiesandExchangeBoardofIndia(BuybackofSecurities)Regulations,1998.NotApplicableduringtheAuditperiod1992('SEBIAct'):-
(i)
(ii)(iii)
(iv)
(v)
(vi)
(vii)
(viii)
AnnexureIToBoardReport
SECRETARIALAUDITREPORT
FORTHEFINANCIALYEARENDED31STMARCH,2019
[Pursuanttosection204(1)oftheCompaniesAct,2013andruleNo.9oftheCompanies
(AppointmentandRemunerationofManagerialPersonnel)Rules,2014]
To,
TheMembers,
NeerajPaperMarketingLimited
WehaveconductedtheSecretarialAuditofthecomplianceofapplicablestatutoryprovisionsandtheadherencetogood
corporatepracticesbyNeerajPaperMarketingLimited.SecretarialAuditwasconductedinamannerthatprovidedus
areasonablebasisforevaluatingthecorporateconducts/statutorycompliancesandexpressingouropinionthereon.
BasedonourverificationoftheNeerajPaperMarketingLimited's books,papers,minutebooks,formsandreturns
filedandotherrecordsmaintainedbythecompanyandalsotheinformationprovidedbytheCompany,itsofficers,
agentsandauthorizedrepresentativesduringtheconductofSecretarialAudit,weherebyreportthatinouropinion,thestcompany has, during the audit period covering the financial year ended on31 March, 2019 compliedwith the
statutory provisions listed hereunder and also that the Company has proper Board-processes and compliance
mechanisminplacetotheextent,inthemannerandsubjecttothereportingmadehereinafter:
Wehaveexaminedthebooks,papers,minutebooks,formsandreturnsfiledandotherrecordsmaintainedbyNeerajstPaperMarketingLimitedforthefinancialyearendedon31 March,2019accordingtotheprovisionsof:
NEERAJPAPERMARKETINGLTD.
24thAnnualReport2019 31
Inrespectofother lawsspecificallyapplicable to theCompany,wehavereliedontherepresentationmadebythe
CompanyanditsOfficersforsystemsandmechanismformedbytheCompanyforcompliancesunderotherapplicable
Acts,LawsandRegulationstotheCompanyandthereportingislimitedtothatextent.Aspertheinformation,the
followingotherlawsarespecificallyapplicabletothecompany:
I) LabourLawsandotherincidentallawsrelatedtoemployeesappointedbytheCompanyonitspayrollas relatedtogratuity,providentfund,ESICetc.;II) ActsasprescribedunderDirectTaxandIndirectTax
Wehavealsoexaminedcompliancewiththeapplicableclausesofthefollowing:
(i). SecretarialStandardsonMeetingsofBoardofdirectors(SS-1)andGeneralMeetings(SS-2)issuedbyThe InstituteofCompanySecretariesofIndia. (ii). SEBI(ListingObligationsandDisclosureRequirements)Regulations,2015
During the period under review the Company has complied with the provisions of the Act, Rules, Regulations,Guidelines,Standards,etc.mentionedaboveexceptthattherewasdelayinsubmissionofAuditedfinancialresultsfortheQuarterandYearended31/03/2018withtheStockExchangesanddelayinpublicationofsameinnewspapers.ThecompanyislistedwithBSELimitedunderTrade–for-Tradesegmentsince100%PromoterShareholdingand50%ofPublicShareholdingofthecompanyisnotindematForm.Wefurtherreportthat:
(i) The Board of Directors of the Company is duly constitutedwith proper balance of ExecutiveDirectors, Non-ExecutiveDirectorsandIndependentDirectors.ThechangesinthecompositionoftheBoardofDirectorsthattookplaceduringtheperiodunderreviewwerecarriedoutincompliancewiththeprovisionsoftheAct,
(ii).AdequatenoticeisgiventoalldirectorstoscheduletheBoardMeetings,agendaanddetailednotesonagendaweresent at least seven days in advance, and a system exists for seeking and obtaining further information andclarificationsontheagendaitemsbeforethemeetingandformeaningfulparticipationatthemeeting.
Majoritydecisioniscarriedthroughwhilethedissentingmembers'viewsarecapturedandrecordedaspartoftheminutes.
WefurtherreportthatbasedontheinformationreceivedandrecordsmaintainedbytheCompany,thereareadequatesystemsandprocessesintheCompany,commensuratewiththesizeandoperationsoftheCompanytomonitorandensurecompliancewithapplicablelaws,rules,regulationsandguidelines.
WefurtherreportthatduringtheauditperiodtherehasnotbeenanysuchactivityhavingamajorbearingontheCompany'saffairsinpursuanceoftheabovereferredlawsrules,regulations,guidelinesetc.
ForShaillyGoel&Co.PracticingCompanySecretaries
SD/-ShaillyGoelCompanySecretaryFCSNo:8769C.P.No.:9196
Date: 9thAugust,2019Place: NewDelhi
Note:Thisreporttobereadwithourletterofevendatewhichisannexedas'AnnexureA'andformsintegralpartofthisreport.
NEERAJPAPERMARKETINGLTD.
24thAnnualReport2019 32
‘ANNEXUREA’
To,
TheMembers,NEERAJPAPERMARKETINGLIMITED218-222,AgarwalPrestigeMall,
nd2 Floor,CommunityCentre,AlongRoadNo.44,Pitampura,Delhi-110034
Ourreportofevendateistobereadalongwiththisletter.
1. Maintenanceofsecretarialrecordistheresponsibilityofmanagementofthecompany.Ourresponsibilityistoexpressanopiniononthesesecretarialrecordsbasedonouraudit.
2. WehavefollowedtheauditpracticesandprocessesaswereappropriatetoobtainreasonableassuranceaboutthecorrectnessofthecontentsoftheSecretarialrecords.Theverificationwasdoneontestbasistoensurethatcorrectfactsarereflectedinsecretarialrecords.Webelievethattheprocessesandpractices,wefollowedprovideareasonablebasisforouropinion.
3. Wehavenotverifiedthecorrectnessandappropriatenessof financialrecordsandBooksofAccountsof thecompany.
4. Whereeverrequired,wehaveobtainedtheManagementrepresentationaboutthecomplianceoflaws,rulesandregulationsandhappeningofeventetc.
5. ThecomplianceoftheprovisionsofCorporateandotherapplicablelaws,rules,regulations,standardsistheresponsibilityofmanagement.Ourexaminationwaslimitedtotheverificationofproceduresontestbasis.
6.TheSecretarialAuditreportisneitheranassuranceastothefutureviabilityofthecompanynoroftheefficacyoreffectivenesswithwhichthemanagementhasconductedtheaffairsofthecompany.
ForShaillyGoel&Co.PracticingCompanySecretaries
SD/-ShaillyGoelCompanySecretaryFCSNo:8769C.P.No.:9196
Date: 9thAugust,2019Place: NewDelhi
NEERAJPAPERMARKETINGLTD.
24thAnnualReport2019 33
AnnexureIItoBoardReportFORMNO.MGT9
EXTRACTOFANNUALRETURN
Ason�inancialyearendedon31/03/2019PursuanttoSection92(3)oftheCompaniesAct,2013andrule12(1)oftheCompany
(Management&Administration)Rules,2014
I. REGISTRATION&OTHERDETAILS:
1. CIN L74899DL1995PLC066194
2. RegistrationDate 09.03.1995
3. NameoftheCompany NEERAJPAPERMARKETINGLIMITED
4. Category/Sub-categoryoftheCompany PUBLICLIMITEDCOMPANY
5. AddressoftheRegisteredof�ice&contact
details
218-222,AGGARWALPRESTIGEMALL,
PLOTNO.2,COMMUNITYCENTER,
ALONGROADNO.44,PITAMPURA,DELHI–110034
TEL–011-47527700,FAX–011-47527777
6. Whetherlistedcompany YES
7. Name,Address&contactdetailsofthe
Registrar&TransferAgent,ifany
BEETALFINANCIAL&COMPUTERSERVICESPVT.LTD.
BEETALHOUSE,3RDFLOOR,99,MADANGIR,DELHI–
110062
TEL–011-29961281-82,FAX–011-29961284
II. PRINCIPALBUSINESSACTIVITIESOFTHECOMPANY(Allthebusinessactivitiescontributing10%
ormoreofthetotalturnoverofthecompanyshallbestated)
S.No. NameandDescriptionofmainproducts/
services
NICCodeofthe
Product/service
%tototalturnoverofthe
company
1 Trading&MarketingofPaper 46696 100%
III.PARTICULARSOFHOLDING,SUBSIDIARYANDASSOCIATECOMPANIES-
S.N0
NameandAddressoftheCompany
CIN/GLN
Holding/Subsidiary/Associate
%ofsharesheld
ApplicableSection
- - - - - -
NEERAJPAPERMARKETINGLTD.
24thAnnualReport2019 34
IV.SHAREHOLDINGPATTERN(EquityShareCapitalBreakupaspercentageofTotalEquity)i) Category wiseShareHolding
A.Promoters/PromoterGroup
CategoryofShareholders
No.ofSharesheldatthebeginningoftheyear[Ason31-March-2018]
No.ofSharesheldattheendoftheyear[Ason31-March-2019]
%Changeduringtheyear Demat Physical Total
%ofTotalShares
Demat Physical Total %ofTotalShares
(1)Indian
a)Individual/HUF 102590037500 1063400
9.67 104640017000 1063400
9.67 -
b)CentralGovt - - - - - - - - -
c)StateGovt(s) - - - - - - - - -
d)BodiesCorp. 934618 1063686 199830418.17
1998304 0 199830418.17 -
e)Banks/FI - - - - - - - - -
f)Anyother - - - - - - - --
Sub-total(A)(1):- 1960518 1101186 3061704 27.84 3044704 17000 3061704 27.84 -
(2)Foreign
a)NRI-Individuals - - - - - - - - -
b)Other-Individuals - - - - - - - - -
c)BodiesCorp. - - - - - - - - -
d)Bank/FI - - - - - - - - -
e)AnyOther... - - - - - - - - -
Sub-total(A)(2) - - - - - - - - -
Totalshareholdingof
Promoter(A)=
(A)(1)+(A)(2)
1960518 1101186 3061704 27.84 3044704 17000 3061704 27.84 -
B.PublicShareholding
1.Institutions - - - - - - - - -
a)MutualFunds - - - - - - - - -
b)Banks/FI - - - - - - - - -
c)CentralGovt - - - - - - - - -
d)StateGovt(s) - - - - - - - - -
e)VentureCapitalFunds - - - - - - - - -
f)InsuranceCompanies - - - - - - - - -
g)FIIs - - - - - - - - -
NEERAJPAPERMARKETINGLTD.
24thAnnualReport2019 35
h)ForeignVentureCapital
Funds- - - - - - - - -
i)Others(specify) - - - - - - - - -
Sub-total(B)(1):- - - - - - - - - -
2.Non-Institutions
a)BodiesCorp. - - - - - - - - -
i)Indian 675 5958700 5959375 54.18 1562 5958700 5960262 54.18 0.014
ii)Overseas - - - - - - - - -
b)Individuals - - - - - - - - -
i)IndividualshareholdersholdingnominalsharecapitaluptoRs.1lakh
47500 1736201 1783701 16.21 59014 1697304 1756318 15.96 -0.25
ii)IndividualshareholdersholdingnominalsharecapitalinexcessofRs1
lakh
17000 168100 185100 1.68 15421 196400 211821 1.92 0.24
c)Others(specify)HUF
10120 - 10120 0.09 9895 - 9895 0.09 2.22
NonResidentIndians
OverseasCorporateBodies
ForeignNationals
ClearingMembers
Trusts
ForeignBodies-DR
Sub-total(B)(2):- 75295 7863001 7938296 72.16 85892 7852404 7938296 72.16 2.234
TotalPublicShareholding(B)=(B)(1)+(B)(2)
75295 7863001 7938296 72.16 85892 7852404 7938296 72.16 2.234
C.SharesheldbyCustodianforGDRs&
ADRs- - - - - - - - -
GrandTotal(A+B+C) 2035813 8964187 11000000 100 3130596 7869404 11000000 100 -
CategoryofShareholders
No.ofSharesheldatthebeginningoftheyear[Ason31-March-2018]
No.ofSharesheldattheendoftheyear[Ason31-March-2019]
%Changeduringtheyear Demat Physical Total
%ofTotalShares
Demat Physical Total %ofTotalShares
NEERAJPAPERMARKETINGLTD.
24thAnnualReport2019 36
ii)ShareholdingofPromoterandPromoterGroup:-
SN Shareholder’sNameShareholdingatthebeginningoftheyear(31/03/2018)
Shareholdingattheendoftheyear(31/03/2019)
%changeinshareholdingduringtheyear
No.ofShares
%oftotalSharesofthecompany
%ofSharesPledged/encumberedtototalshares
No.ofShares
%oftotalSharesofthecompany
%ofSharesPledged/encumberedtototalshares
1 NeerajGoel 336500 3.06 Nil 336500 3.06 Nil -
2 DeepakGoel 11000 0.1 Nil 11000 0.1 Nil -
3 PraveenKumarGoel 117000 1.06 Nil 117000 1.06 Nil -
4 MadhulikaGoel 275500 2.5 Nil 275500 2.5 Nil -
5 PankajGoel16500 0.15 Nil 16500 0.15 Nil -
6 MukeshGoel17000 0.15 Nil 17000 0.15 Nil -
7 AmbujKumarGoel17500 0.16 Nil 17500 0.16 Nil -
8 PoonamGoel38200 0.35 Nil 38200 0.35 Nil -
9 NutanGoel76500 0.70 Nil 76500 0.70 Nil -
10
RadhikaGoel75800 0.69 Nil 75800 0.69 Nil -
11 IshitaGoel1800 0.02 Nil 1800 0.02 Nil -
12 ChiragGoel37900 0.34 Nil 37900 0.34 Nil -
13 ManikaGoel1500 0.01 Nil 1500 0.01 Nil -
14 ToshikaGoel3500 0.03 Nil 3500 0.03 Nil -
15 TanviGoel3400 0.03 Nil 3400 0.03 Nil -
16 DeepakGoel&Sons16800 0.15 Nil 16800 0.15 Nil -
17 KamlaGoel&Sons(HUF)17000 0.15 Nil 17000 0.15 Nil -
18BindalPulp&PaperPvt.Ltd.
226725 2.07 Nil 226725 2.07 Nil -
19BrinaGopalTradersPvt.Ltd.
279029 2.54 Nil 279029 2.54 Nil -
20SwabhimanVyapaarPvt.Ltd.
500000 4.55 Nil 500000 4.55 Nil -
21 V.R.DigitalPvt.Ltd. 284657 2.59 Nil 284657 2.59 Nil -
22BindalsPapersMillsLimited
707893 6.44 Nil 707893 6.44 Nil -
Total 3061704 27.84 Nil 3061704 27.84 Nil
-
NEERAJPAPERMARKETINGLTD.
24thAnnualReport2019 37
iii)ChangeinPromoters’Shareholding(pleasespecify,ifthereisnochange)
SN Particulars Shareholdingatthe
beginningoftheyear
CumulativeShareholding
duringtheyear
No.of
shares
%oftotal
sharesof
the
company
No.of
shares
%oftotal
sharesof
the
company
Atthebeginningoftheyear 3063400 27.84 3063400 27.84
Datewise Increase/Decrease inPromotersShareholding
during the year specifying the reasons for increase /
decrease (e.g. allotment /transfer / bonus/ sweat equity
etc.):
NOCHANGEINSHAREHOLDING
Attheendoftheyear 3063400 27.84 3063400 27.84
iv)ShareholdingPatternoftoptenShareholders:
(OtherthanDirectors,PromotersandHoldersofGDRsandADRs):SN ForEachoftheTop
10
Shareholders
Shareholdingatthe
beginning
oftheyear
Shareholdingatthe
end
oftheyear
Date wise Increase /
Decrease in Promoters
Shareholding during the
year
Cumulative
Shareholdingduring
the
Year
No.of
shares
%oftotal
sharesof
the
company
No.of
shares
%oftotal
sharesof
the
company
No.of
shares
%oftotal
sharesof
the
company
1. Sundeep Credit Pvt.
Ltd.
500000 4.55 500000 4.55 NoChange 500000 4.55
2. Alankrit Retails Pvt.
Ltd.
500000 4.55 500000 4.55 NoChange 500000 4.55
3. Phoenix Consumer
GoodsPvt.Ltd.
420000 3.82 420000 3.82 NoChange 420000 3.82
4. RamAlloyCastingsPvt.
Ltd.
400000 3.64 400000 3.64 NoChange 400000 3.64
5. Symbolic Finance &
InvestmentPvt.Ltd.
400000 3.64 400000 3.64 NoChange 400000 3.64
6. PetalsPackingPvt.Ltd. 400000 3.64 400000 3.64 NoChange 400000 3.64
7. Vibgyor Contractors
Pvt.Ltd.
357100 3.25 357100 3.25 NoChange 357100 3.25
8. Binshul Garments Pvt.
Ltd.
340000 3.09 340000 3.09 NoChange 340000 3.09
9. Bluestar Impex Pvt.
Ltd.
300000 2.73 300000 2.73 NoChange 300000 2.73
10. Base Media Projects
Pvt.Ltd.
300000 2.73 300000 2.73 NoChange 300000 2.73
NEERAJPAPERMARKETINGLTD.
24thAnnualReport2019 38
v)ShareholdingofDirectorsandKeyManagerialPersonnel:SN Shareholdingofeach
DirectorsandeachKey
ManagerialPersonnel
Shareholdingatthe
beginningoftheyear
Shareholdingatthe
endoftheyear
DatewiseIncrease/
Decreasein
Promoters
Shareholding
duringtheyear
Cumulative
Shareholdingduring
theYear
No.of
shares
%oftotal
sharesof
the
company
No.of
shares
%oftotal
sharesof
the
company
No.of
shares
%oftotal
sharesof
the
company
1.
DeepakGoel(WTD) 11000 0.10 11000 0.10 NoChange 11000 0.10
2. PraveenKumarGoel(WTD) 117000 1.06 117000 1.06 NoChange 117000 1.06
3. AmitAgarwal(Non-ExeDir) NIL NIL NIL NIL N.A NIL NIL
4. ShubhakarPathak(Indp.Dir) NIL NIL NIL NIL N.A NIL NIL
5. AnkurSangal(Indp.Dir) NIL NIL NIL NIL N.A NIL NIL
6. Sonal(Indp.Dir) NIL NIL NIL NIL N.A NIL NIL
7
VipinKumarGoel(CFO) NIL NIL NIL NIL N.A NIL NIL
8. Mansi(CS) NIL NIL NIL NIL N.A NIL NIL
V)INDEBTEDNESS-Indebtednessofthecompanyincludinginterestoutstanding/accruedbutnotdueforpayment:
(InLacs)
SecuredLoansexcluding
depositsUnsecuredLoans Deposits
Total
Indebtedness
Indebtednessatthebeginningofthe�inancial
year
i)PrincipalAmount 6078.06 406.94 - 6485.00
ii)Interestduebutnotpaid - - - -
iii)Interestaccruedbutnotdue - - - -
Total(i+ii+iii) 6078.06 406.94 - 6485.00
ChangeinIndebtednessduringthe�inancial
year
*Addition 59.12 32.77 - 91.89
*Reduction 4340.34 40.78 - 4381.12
NetChange (4281.22) (8.01) - (4289.23)
Indebtednessattheendofthe�inancialyear
i)PrincipalAmount 1796.84 398.93 - 2195.77
ii)Interestduebutnotpaid - - - -
iii)Interestaccruedbutnotdue - - - -
Total(i+ii+iii) 1796.84 398.93 - 2195.77
NEERAJPAPERMARKETINGLTD.
24thAnnualReport2019 39
VI.REMUNERATIONOFDIRECTORSANDKEYMANAGERIALPERSONNEL-
A.RemunerationtoManagingDirector,Whole-timeDirectorsand/orManager:
SN. ParticularsofRemuneration NameofMD/WTD/Manager TotalAmount
DeepakGoel(WTD) PraveenKumarGoel(WTD)
1
Grosssalary -
(a)Salaryasperprovisionscontainedinsection17(1)of
theIncome-taxAct,19611800000 1800000 3600000
(b)Valueofperquisitesu/s17(2)Income-taxAct,1961 - - -
(c)Pro�itsinlieuofsalaryundersection17(3)Income-tax
Act,1961- - -
2 StockOption - - -
3 SweatEquity - - -
4
Commission
-as%ofpro�it
-others,specify…
- - -
5 Others,pleasespecify
- - -
Total(A) 1800000 1800000 3600000
B. Remunerationtootherdirectors
SN. ParticularsofRemuneration NameofDirectors TotalAmount
AmitAgarwal ShubhakarPathak AnkurSangal Sonal
1
IndependentDirectors
Feeforattendingboardcommitteemeetings - 5000 10000 10000 25000
Commission - - - - -
Others,pleasespecify - - - - -
Total(1) - 5000 10000 10000 25000
2
OtherNon-ExecutiveDirectors - - - - -
Feeforattendingboardcommitteemeetings 10000 - - - 10000
Commission - - - - -
Others,pleasespecify - - - - -
Total(2) 10000 - - - 10000
Total(B)=(1+2) 10000 5000 10000 10000 35000
TotalManagerial
Remuneration*
*TotalManagerialRemunerationisTotalofA
CeilingaspertheActunderScheduleVisRs.84,00,000/-foronemanagerialpersonnel
OverallCeilingaspertheActisRs.100,000permeetingattendancefees
NEERAJPAPERMARKETINGLTD.
24thAnnualReport2019 40
C.REMUNERATIONTOKEYMANAGERIALPERSONNELOTHERTHANMD/MANAGER/WTD
SN ParticularsofRemuneration KeyManagerialPersonnel(Annual)
CS CFO Total
1
Grosssalary 352000 625000 977000
(a)Salaryasperprovisionscontainedinsection17(1)oftheIncome-taxAct,1961 - - -
(b)Valueofperquisitesu/s17(2)Income-taxAct,1961 - - -
(c)Pro�itsinlieuofsalaryundersection17(3)Income-taxAct,1961 - - -
2 StockOption - - -
3 SweatEquity - - -
4 Commission - - -
-as%ofpro�it - - -
Othersspecify… - - -
5 Others,pleasespecify - - -
Total 352000 625000 977000
Note:Duringtheyear,Ms.VaishaliMathpal,CompanySecretaryhasresignedandMs.MansihasbeenappointedasCompanySecretaryon 22/10/2018.
VII.PENALTIES/PUNISHMENT/COMPOUNDINGOFOFFENCES:
TypeSectionoftheCompaniesAct
BriefDescription
DetailsofPenalty/Punishment/Compoundingfeesimposed
Authority[RD/NCLT/COURT]
Appealmade,ifany(giveDetails)
A.COMPANY
Penalty NIL
Punishment
Compounding
B.DIRECTORS
Penalty
PunishmentNIL
Compounding
C.OTHEROFFICERSINDEFAULT
Penalty NIL
Punishment
Compounding
thDATED:13 AUGUST,2019PLACE:DELHI
Sd/-DEEPAKGOEL
(WHOLE-TIME-DIRECTOR)DIN:00200527
Sd/-PARVEENKUMARGOEL
(WHOLE-TIME-DIRECTOR)DIN:00014638
ByOrderoftheBoardForNEERAJPAPERMARKETINGLIMITED
NEERAJPAPERMARKETINGLTD.
24thAnnualReport2019 41
AnnexureIIItoBoardReport
FORMNO.AOC-2(Pursuanttoclause(h)ofsub-section(3)ofsection134oftheActandRule8(2)oftheCompanies
(Accounts)Rules,2014.
FormforDisclosureofparticularsofcontracts/arrangementsenteredintobythecompanywithrelatedpartiesreferredtoinsubsection(1)ofsection188oftheCompaniesAct,2013includingcertainarmslengthtransactionunderthirdprovisothereto.
1.DetailsofcontractsorarrangementsortransactionsnotatArm'slengthbasis.TherewerenocontractsorarrangementsortransactionsenteredduringtheyearendedMarch31,2019,whichwerenotatarm'slengthbasis.
2.DetailsofcontractsorarrangementsortransactionsatArm'slengthbasis.
NameofRelatedParty NatureofRelationship NatureofTransactionDurationofTransaction
Salienttermsoftransaction
Amount(InLacs)
M/sShakumbhariPulp&PaperMillsLimited
CommondirectorshipPurchase
From01/04/2018to31/03/2019
BUSINESSTRANSACTION
3.75Sales 109.48AmountPayable 2.31
RoshanLalAshokKumar
DirectorsarepartnersofHUF
TransferofInvestmentinshares
- - 25
Mr.DeepakGoel
Director
DirectorRemuneration
From01/04/2018to31/03/2019
-
18.00
UnsecuredLoanPaid 11.60
UnsecuredLoanReceived 20AmountPayable(Remuneration+Loan)
20.68
Mr.PraveenKumarGoel DirectorDirectorRemuneration From01/04/2018
to31/03/2019-
18.00
AmountPayable 0.78
Mr.PankajGoel RelativeofDirectorSalary From01/04/2018
to31/03/2019-
6.60
AmountPayable 0.50
Mr.VipinKumarGoel(CFO)
RelativeofDirectorSalary From01/04/2018
to31/03/2019-
6.25AmountPayable 1.50
Ms.VaishaliMathpal CompanySecretary(Resigned)
SalaryFrom01/04/2018to08/10/2018
- 2.03
Ms.Mansi CompanySecretarySalary From22/10/2018
to31/03/2019-
1.49
AmountPayable 0.28
Ms.IshitaGoel RelativeofDirectorUnsecuredLoanReceived From01/04/2018
to31/03/2019-
3.41
UnsecuredLoanPaid 3.41
Mr.ChiragGoel RelativeofDirectorUnsecuredLoanReceived
From01/04/2018to31/03/2019
-0.82
UnsecuredLoanPaid 0.82
InterestpaidonU/SLoan 0
Mr.UditGoel RelativeofDirectorUnsecuredLoanPaid From01/04/2018
to31/03/2019-
4.18InterestpaidonU/SLoan 0.41
Mrs.NutanGoel RelativeofDirectorUnsecuredLoanPaid
From01/04/2018to31/03/2019
-
12.46UnsecuredLoanReceived 5.46InterestpaidonU/SLoan 0.33
thDATED:13 AUGUST,2019PLACE:DELHI
Sd/-DEEPAKGOEL
(WHOLE-TIME-DIRECTOR)DIN:00200527
Sd/-PARVEENKUMARGOEL
(WHOLE-TIME-DIRECTOR)DIN:00014638
ByOrderoftheBoardForNEERAJPAPERMARKETINGLIMITED
NEERAJPAPERMARKETINGLTD.
24thAnnualReport2019 42
AnnexureIVtoBoardreport
Disclosure in the Board’s Report under Rule 5 of Companies (Appointment & Remuneration of Managerial
Personnel)Rules,2016
(i) TheRatiooftheremunerationofeachdirectortothemedianremunerationoftheemployeesofthecompanyforthe�inancialyear2018-19
Director’sName Ratiotomedianremuneration(Ason31/03/2019)
DeepakGoel 5.76:1
PraveenKumarGoel 5.76:1
(ii) ThePercentageincreaseinremunerationofeachDirector,ChiefFinancialOf�icer,ChiefExecutiveOf�icer,CompanySecretaryorManager,ifany,inthe�inancialyear2018-19comparedto2017-18
Director’s/CFO/CSname
Percentageincreaseinremuneration
DeepakGoel,WTD Nochange PraveenKumarGoel,WTD Nochange VipinKumarGoel,CFO Nochange Mansi(CS) Nochange(iii) Percentageincreaseinthemedian
remunerationofemployeesinthe�inancialyear2018-19comparedto2017-18*
11.76%
(iv) Numberofpermanentemployeesontherollsofthecompany
Ason31.03.2019 Ason31.03.2018
30 35(v) Averagepercentileincreaseinsalariesof
Employeesotherthanmanagerialpersonnelin2018-19comparedto2017-18**
16.15%
Averagepercentileincreaseinmanagerialremunerationin2018-19
Nil
Af�irmationthattheremunerationisaspertheremunerationpolicyofthecompany.
Itisherebyaf�irmedthatremunerationpaidisaspertheremunerationpolicyoftheCompany
*Remunerationofemployeesason31/03/2019and31/03/2018.**Averagepercentileincreaseinsalarieshasbeenconsideredonannualbasis.
thDATED:13 AUGUST,2019PLACE:DELHI
Sd/-DEEPAKGOEL
(WHOLE-TIME-DIRECTOR)DIN:00200527
Sd/-PARVEENKUMARGOEL
(WHOLE-TIME-DIRECTOR)DIN:00014638
ByOrderoftheBoardForNEERAJPAPERMARKETINGLIMITED
***Totalemployeesexcludesdirectorofcompany
***
NEERAJPAPERMARKETINGLTD.
24thAnnualReport2019 43
AnnexureV-TOPTENEMPOLY
EESDETAILS
NEERAJPAPERMARKETINGLTD.
24thAnnualReport2019 44
CORPORATEGOVERNANCEREPORT1. COMPANY’SPHILOSOPHYONCODEOFGOVERNANCETheCompanybelievesthatCorporateGovernanceisasetofprocesses,customs,policies,rules,regulationandlawsfor ensuring transparency, professionalism and accountability in its dealings with its customers, principal,employees, shareholders and with every individual who comes in contact with the Company. The Company’sphilosophyonCorporateGovernanceisboundeduponarichlegacyof fairethicalgovernancepracticeswhichhasbeen in practice since the beginning. Integrity, transparency, accountability and compliancewith lawswhich arecolumnsofgoodgovernancehavealwaysbeenthehallmarkofcompany.TheCompanyisinfullcompliancewiththerequirementsofCorporateGovernanceunderListingRegulationenteredintowiththeStockExchangesandinthisregard, submits a report on themattersmentioned in the said regulation and also the practices followed by theCompanyasstatedbelow:2. BOARDOFDIRECTORSTheBoardofDirectorsofthecompanyreviewthestrategicpoliciesandcon�irmthattheyareimplementedin themannerthat isacceptableintermsoftheregulationsofthecountryandenhancestheshareholder’svalueand thecon�idenceoftheoutsidepartiesrelatingtothecompany.TheagendapapersforthemeetingsoftheBoardofDirectorsarecirculatedtoBoardmemberswithinthereasonabletimeperiod.
CompositionoftheBoard&theirResponsibility
The board of the Company consists of 6 Directors- Four Non- Executive Directors &Two ExecutiveDirectors, ofwhomthreeareIndependentDirectorsoutofwhomoneindependentWomanDirector.Thedirectorsbringtotheboard wide range of experience and skills. The category, composition, attendance of each director at the BoardMeeting, Last Annual General Meeting and the number of other directorship and chairmanship/Membership ofcommitteesofeachDirectorinvariouscompaniesason31stMarch,2019isgivenhereunder.Name of
Director
Category BoardMeetingattendedduringthe year2018-19
Attendance atthelastAGM
No. ofDirectorshipheld as on31/03/2019inother Publicand PrivateLimitedCompanies
No. of CommitteeMemberships, inother companies ason31/03/2019
AsChairman
AsMember
Mr. DeepakGoel
Executive Director (WholeTimeDirector)
5 Yes Nil Nil Nil
Mr. PraveenKumarGoel
Executive Director (WholeTimeDirector)
3 Yes 1 Nil Nil
Mr. AmitAgarwal
Non-Executive NonIndependentDirector
4 Yes 5 Nil Nil
Mr. AnkurSangal
Non-Executive IndependentDirector
4 Yes 5 1 1
Mr. ShubhakarPathak
Non-Executive IndependentDirector
2 Yes Nil
Nil Nil
Ms.Sonal Non-Executive IndependentDirector
4 Yes Nil Nil Nil
NEERAJPAPERMARKETINGLTD.
24thAnnualReport2019 45
ThenamesoftheotherlistedentitieswheredirectorsoftheCompanyaredirectorsareasfollows:NameofDirector Name of other
listedentitiesCategory ofDirectorship
Member/Chairman in Committees ofBoardinotherlistedentities
Mr.DeepakGoel Nil Nil Nil
Mr. Praveen KumarGoel
Nil Nil Nil
Mr.AmitAgarwal Nil Nil Nil
Mr.AnkurSangal Agarwal DuplexBoardMillsLimited
Non ExecutiveIndependentDirector
AuditCommittee-ChairmanNominationandRemunerationCommittee-Member
Mr.ShubhakarPathak Nil Nil NilMs.Sonal Nil Nil Nil
Note:
a) Boardofdirectorofcompanycomprisesof6directorsoutofwhich2areexecutiveandother4arenonexecutivethreeofwhomarenonexecutiveindependentDirectors.
b) Number of other directorships/committee membership/ chairmanship indicated above is exclusive of
directorships,committeemembershipandchairmanshipinNeerajPaperMarketingLimited.
c) NoneoftheDirectorsoftheCompanyarerelatedtoeachother.No.ofBoardMeetingsHeldwithDatesDuringthe�inancialyear2018-19,theBoardofNeerajPaperMarketingLimitedhadmet5times.
Thedatesofthemeetingare:
30/05/2018,13/08/2018,22/10/2018,14/11/2018,13/02/2019
IndependentDirectors
The Company has compliedwith the de�inition of Independence as per Listing Regulation and according to theProvisions of section 149(6) Companies Act, 2013. The company has also obtained declarations from all theIndependentDirectorspursuanttosection149(7)oftheCompaniesAct,2013.Onthebasisofdeclarations/certi�icatesreceived,theboardcon�irmsthatinitsopinion,theIndependentDirectorsful�il theconditionsspeci�iedintheSEBI(ListingObligationsandDisclosureRequirements)Regulations,2015andareindependentoftheManagement.TrainingofIndependentDirectorsWhenever new Non-executive and Independent Directors are inducted in the Board they are introduced to ourCompany’s culture through appropriate orientation session and they are also introduced to our organizationstructure,ourbusiness,constitution,boardprocedures,ourmajorrisksandmanagementstrategy.ThetermsandconditionsofappointmentofIndependentDirectorshavebeenplacedontheCompany’swebsiteathttp://www.neerajpaper.com/index.php?page=code_conduct.
NEERAJPAPERMARKETINGLTD.
24thAnnualReport2019 46
PerformanceEvaluationofnon-executiveandIndependentDirectorsTheBoardevaluatestheperformanceofNon-executiveandIndependentDirectorseveryyear.AlltheNon-executiveandIndependentDirectorsareeminentpersonalitieshavingwideexperienceinthe�ieldofbusiness,industryandadministration.TheNominationandRemunerationCommitteehaslaiddownthecriteriaforperformanceevaluationofIndependentDirectors.TheframeworkofperformanceevaluationoftheIndependentDirectorswillcapturethefollowingpoints:
A) KeyattributesoftheIDsthatjustifyhis/herextension/continuationontheBoardoftheCompany;
B) ParticipationoftheDirectorsintheBoardproceedingsandhis/hereffectiveness;TheassessmenttodeterminethekeyattributesoftheDirectorsshouldcoverthefollowing:Relevantexperienceandskills:
-abilityandwillingnesstospeakup
-abilitytocarryothers
-abilitytodisagree,standhis/hergroundTheperformanceevaluationoftheIndependentDirectorswascarriedoutbytheentireBoardexcludingthedirector
beingevaluated.TheperformanceevaluationoftheChairmanandtheNonIndependentDirectorswascarriedoutby
the IndependentDirectors.Theboardalsocarriedoutannualperformanceevaluationof theworkingof itsAudit,
Nomination and Remuneration as well as stakeholder relationship committee. The Directors expressed their
satisfactionwiththeevaluationprocess.
AstructuredquestionnairecoveringvariousaspectsoftheBoard’sfunctioningsuchasadequacyofthecomposition
of the Board and its Committees, Board culture, execution and performance of speci�ic duties, obligations and
governance was prepared after taking into consideration the Guidance note issued by SEBI vide circular no,
CMD/CIR/P/2017/004dated05.01.2017.
SeparateMeetingoftheIndependentDirectors:The Independent Directors held a Meeting on 8th February 2019 without the attendance of Non-IndependentDirectorsandmembersofManagement.AlltheIndependentDirectorswerepresentatthemeeting.Thefollowingissueswerediscussedindetail:
I) Reviewedtheperformanceofnon-independentdirectorsandtheBoardasawhole;
II) Reviewed the performance of the Chairperson of the Company, taking into account the views ofExecutiveDirectorsandNon-ExecutiveDirectors;
III) Assessed the quality, quantity and timeliness of �low of information between the Company
ManagementandtheBoardthatisnecessaryfortheBoardtoeffectivelyandreasonablyperformtheirduties.
FamiliarizationprogrammeforIndependentDirectors
Thecompanyhasformulatedapolicytofamiliarizetheindependentdirectorswiththecompany,theirroles,rights,responsibilities in the company, nature of the industry in which the company operates, business model of thecompany, etc., through various programmes.The details of such familiarisation programmes are disclosed in thewebsiteofthecompanyatthehttp://www.neerajpaper.com/index.php?page=code_conduct.
NEERAJPAPERMARKETINGLTD.
24thAnnualReport2019 47
CORESKILLS/EXPERTISE/COMPETENCIESIDENTIFIEDBYTHEBOARDOFDIRECTORSTheBoard is skill-based comprisingof directorswhocollectively have the skills, knowledge and competencies toeffectivelygovernanddirecttheorganization.Thefollowingisthelistofcoreskills/expertise/competenciesidenti�iedbytheBoardofDirectorsasrequiredinthecontextoftheCompany’sbusinessandthatthesaidskillsareavailablewiththeBoardMembers:
i) Knowledge on Company’s businesses (Paper andPaper products), policies andculture (including theMission, Vision and Values) major risks / threats and potential opportunities and knowledge of theindustryinwhichtheCompanyoperates
ii) Behavioral skills - attributes and competencies to use their knowledge and skills to contributeeffectivelytothegrowthoftheCompanyinthemarket
iii) BusinessStrategy,Sales&Marketing,CorporateGovernance,Administration,DecisionMaking,
iv) FinancialandManagementskills
v) Technical/ProfessionalskillsandspecializedknowledgeinrelationtoCompany’sbusiness
Non-Executivedirector’scompensationanddisclosure
ThecompanyhaspaidsittingfeesofRs.2,500/-permeetingtoNon-Executivedirector’smaximumuptoRs.10,000/-
for a year for attending the BoardMeetings during the �inancial year 2018-19.No other remuneration has been
providedtothenon-executivedirectors.
MeetingsoftheBoardFrequency:TheBoardmeetsatleastonceaquartertoreviewthequarterlyresultsandotheritemsoftheAgenda.Whenevernecessary,additionalmeetingsareheld.Incaseofbusinessexigenciesorurgencyofmatters,resolutionsarepassedbycirculations,aspermittedbylaw,whichiscon�irmedinthenextBoardMeeting.MeetingsCalendar:Theprobabledatesof theBoard/CommitteeMeetingsfor the forthcomingyeararedecidedwellinadvanceinordertofacilitateandassisttheDirectorstoplantheirschedulesfortheMeetings.BoardMeetingLocation:ThelocationsoftheBoard/CommitteeMeetingsareinformedwellinadvancetoalltheDirectors.EachDirectorisexpectedtoattendtheBoard/CommitteeMeetings.InformationSuppliedtotheBoard/Committees:Amongothers,informationsuppliedtotheBoard/Committeesincludes:_Annualoperatingplansofbusinessesandbudgetsandanyupdatethereof._Capitalbudgetsandanyupdatesthereof._QuarterlyresultsoftheCompanyanditsoperatingdivisionsorbusinesssegment._MinutesoftheMeetingsoftheauditcommitteeandallotherCommitteesoftheBoard._ The information on recruitment and remuneration of senior of�icers just below the Board level, including theappointmentorremoval,ifany,ofChiefFinancialOf�icerandCompanySecretary.
NEERAJPAPERMARKETINGLTD.
24thAnnualReport2019 48
_Showcause,demand,prosecutionnoticesandpenaltynotices,whicharemateriallyimportant._Fatalorseriousaccidents,dangerousoccurrences,anymaterialef�luentorpollutionproblems._Anymaterialdefaultin�inancialobligationstoandbytheCompanyorsubstantialnon-paymentforgoodssoldbytheCompany.
_Anyissue,whichinvolvespossiblepublicorproductliabilityclaimsofsubstantialnature,includingany judgmentor order, whichmay have passed strictures on the conduct of the Company or taken an adverse view regardinganotherenterprisethatcanhavenegativeimplicationsontheCompany._Transactionsthatinvolvesubstantialpaymenttowardsroyalty,goodwill,brandequityorintellectualproperty. _Signi�icant labour problems and their proposed solutions. Any signi�icant development in human resources /industrialrelationsfrontlikesigningofwageagreement,implementationofvoluntaryretirementschemeetc._Saleofinvestment,subsidiaries,assestswhicharematerialinnatureandnotinnormalcourseofbusiness._Makingofloansandinvestmentsofsurplusfunds._GeneralnoticesofinterestsofDirectors._Formation/ReconstitutionofBoardCommittees._Appointment,remunerationandresignationofDirectors._Dividenddeclaration,ifany._Signi�icantchangesinaccountingpoliciesandinternalcontrols._Detailsofanyjointventureorcollaborationagreement._Quarterlydetailsofforeignexchangeexposuresandthestepstakenbymanagementtolimitofadverseexchangeratemovement,ifmaterial._Non–complianceofanyregulatory,statutorynatureorlistingrequirementsandshareholders'service,suchasnon-paymentofdividend,delayinsharetransferetc._DeclarationssubmittedbyIndependentDirectorsatthetimeofappointmentandalsoannually._Appointmentofand�ixingofremunerationoftheAuditorsasrecommendedbytheAuditCommittee._Annual�inancialresultsoftheCompany,Auditors'Report,Director’sReport,CorporateGovernanceReportetc. _ComplianceCerti�icatesforallthelawsasapplicabletotheCompany.CodeofConduct
The Code of Conduct for Board of Directors and SeniorManagement Personnel (it includes allmembers of core
managementteamonelevelbelowtheexecutiveDirectorsandallthefunctionalheads,)ofNeerajPaperMarketing
Limited.(Hereinafterreferredtoas“theCompany”)incompliancewiththeprovisionsofListingRegulationsentered
intobytheCompanywiththeStockExchanges.
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24thAnnualReport2019 49
ThisCode seeks to provide guidance to theBoard ofDirectors and SeniorManagement Personnel tomanage the
affairoftheCompanywith:
a) Honest,fairandethicalconduct,b) Con�identialityofInformation,c) Ethicalhandlingofcon�lictsofinterestbetweenpersonalandprofessionalrelationships,d) LegalCompliance,e) ProtectionandProperUseofCorporateassetsandresources,f) Theinternalreportingtoappropriatepersonorpersonsidenti�iedbelowofviolationsofthisCode,g) AccountabilityforAdherencetothisCode.Directors and SeniorManagerial Personnelmust conduct themselves accordingly and not to indulge in improperbehaviorormoralturpitude.AlltheBoardmembersandSeniorManagementpersonnelhaveaf�irmedcompliancewiththecodeofconduct.AdeclarationsignedbytheChairmanoftheCompanytothiseffectiscontainedattheendof this report. The code of conduct is also posted on the company’s website athttp://www.neerajpaper.com/index.php?page=code_conduct.COMMITTEESOFTHEBOARDOFDIRECTORS
Ason31stMarch,2019,theCompanyhasthreecommittees:1. AuditCommittee2. NominationandRemunerationCommittee.3. StakeholderRelationshipCommitteeAllthedecisionspertainingtotheconstitutionoftheCommittees,appointmentofmembers,and�ixingoftermsofreferenceforcommitteemembersaretakenbytheBoardofDirectors.Detailsontheroleandcompositionofthesecommittees, including the number of meetings held during the �inancial year and the related attendance, areprovided below. Further, composition of various committees constituted in the company are also posted on thecompany’swebsiteathttps://www.neerajpaper.com/comp-sebi.pdf1. AUDITCOMMITTEEi) TermsofReference
ThePowersandtheroleoftheAuditCommitteeareaspertheguidelinesprovidedintheListingRegulationandSection 177 of the Companies Act 2013, which inter-alias include the overview of Company’s Financialreporting process, review of quarterly, half yearly and Annual �inancial statements, adequacy of internalcontrol, review of related party transactions etc. It also reviewsmajor accounting policies followed by thecompany.
ii)CompositionFrom1stApril,2018to31stMarch2019,theAuditCommitteecomprisedofthefollowingmembers:
1. Mr.AnkurSangal(Non-ExecutiveIndependentDirector)-Chairman2. Mr.AmitAgarwal(Non-ExecutiveDirector) -Member 3. Ms.Sonal(Non-ExecutiveIndependentDirector)-Member
iii)MeetingsandAttendanceduringtheyear:Duringthe�inancialyearended31stMarch,2018,theauditcommitteehasmet4times:
30/05/2018,13/08/2018,14/11/2018,13/02/2019.
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24thAnnualReport2019 50
AttendanceoftheDirectorsattheAuditCommitteeason31stMarch,2019isasfollows:
Director Category No.ofMeetingsHeld AttendedMrAnkurSangal Chairman 4 4Mr.AmitAgarwal Member 4 4Ms.Sonal Member 4 4
iv)PowerandRoleofAuditcommitteeTheroleoftheauditcommitteeincludesofthefollowing:
1. Oversightofthecompany’s�inancialreportingprocessandthedisclosureofits�inancialinformationtoensurethatthe�inancialstatementiscorrect,suf�icientandcredible;
2. Recommendationforappointment,remunerationandtermsofappointmentofauditorsofthecompany;
3. Approvalofpaymenttostatutoryauditorsforanyotherservicesrenderedbythestatutoryauditors;
4. Reviewing, with the management, the annual �inancial statements and auditor's report thereon beforesubmissiontotheboardforapproval,withparticularreferenceto:
a. MattersrequiredtobeincludedintheDirector’sResponsibilityStatementtobeincludedintheBoard’sreportintermsofclause(c)ofsub-section3ofsection134oftheCompaniesAct,2013
b. Changes,ifany,inaccountingpoliciesandpracticesandreasonsforthesame
c.Majoraccountingentriesinvolvingestimatesbasedontheexerciseofjudgmentbymanagement
d.Signi�icantadjustmentsmadeinthe�inancialstatementsarisingoutofaudit�indings
e.Compliancewithlistingandotherlegalrequirementsrelatingto�inancialstatements
f.Disclosureofanyrelatedpartytransactions
g.Modi�iedopinion(s)inthedraftauditreport
5. Reviewing, with the management, the quarterly �inancial statements before submission to the board forapproval;
6. Reviewing,withthemanagement,thestatementofuses/applicationoffundsraisedthroughanissue(publicissue,rightsissue,preferentialissue,etc.),thestatementoffundsutilizedforpurposesotherthanthosestatedintheofferdocument/prospectus/noticeandthereportsubmittedbythemonitoringagencymonitoringtheutilisationofproceedsofapublicorrights issue,andmakingappropriaterecommendationstotheBoardtotakeupstepsinthismatter;
7. Reviewandmonitortheauditor’sindependenceandperformance,andeffectivenessofauditprocess;
8. Approvaloranysubsequentmodi�icationoftransactionsofthecompanywithrelatedparties;
9. Scrutinyofinter-corporateloansandinvestments;
10. Valuationofundertakingsorassetsofthecompany,whereveritisnecessary;
11. Evaluationofinternal�inancialcontrolsandriskmanagementsystems;
12. Reviewing,with themanagement, performance of statutory and internal auditors, adequacyof the internalcontrolsystems;
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24thAnnualReport2019 51
13. Reviewing the adequacy of internal audit function, if any, including the structure of the internal auditdepartment, staf�ing and seniority of the of�icial heading the department, reporting structure coverage andfrequencyofinternalaudit;
14. Discussionwithinternalauditorsofanysigni�icant�indingsandfollowupthereon;
15. Reviewing the �indings of any internal investigations by the internal auditors into matters where there issuspectedfraudorirregularityorafailureofinternalcontrolsystemsofamaterialnatureandreportingthemattertotheboard;
16. Discussionwithstatutoryauditorsbeforetheauditcommences,aboutthenatureandscopeofauditaswellaspost-auditdiscussiontoascertainanyareaofconcern;
17. To look into the reasons for substantial defaults in the payment to the depositors, debenture holders,shareholders(incaseofnon-paymentofdeclareddividends)andcreditors;
18. ToreviewthefunctioningoftheWhistleBlowermechanism;
19. ApprovalofappointmentofCFO(i.e.,thewhole-timeFinanceDirectororanyotherpersonheadingthe�inancefunctionordischargingthatfunction)afterassessingthequali�ications,experienceandbackground,etc.ofthecandidate;
20. Carryingoutanyotherfunctionasismentionedinthetermsofreferenceoftheauditcommittee.
21. Toreviewtheutilizationofloansand/oradvancesfrom/investmentbytheholdingcompanyinthesubsidiaryexceedingrupees100croreor10%oftheassetsizeofthesubsidiary,whicheveris lowerincludingexistingloans/advances/investments.*
A. Theauditcommitteeshallmandatorilyreviewthefollowinginformation:1. Managementdiscussionandanalysisof�inancialconditionandresultsofoperations2. Statement of signi�icant related party transactions (as de�ined by the audit committee), submitted by
management;3. Managementletters/lettersofinternalcontrolweaknessesissuedbythestatutoryauditors;4. Internalauditreportrelatingtointernalcontrolweaknesses;5. Theappointment,removalandtermsofremunerationofthechiefinternalauditorshallbesubjecttoreview
byauditcommittee.6. Statementofdeviations:
(a) Quarterlystatementofdeviation(s) includingreport ofmonitoringagency, ifapplicable, submitted tostockexchange(s)intermsofRegulation32(1).
(b) Annual statement of funds utilized for purposes other than those stated in the offer document /prospectus/noticeintermsofRegulation32(7).
2. NOMINATION&REMUNERATIONCOMMITTEE
i) TermsofReference
The primary purpose of the Committee, among other things, is to determine and propose the following for
Board'sapproval:-
a) identifypersonswhoarequali�iedtobecomeDirectorsandwhomaybeappointedinseniormanagementpositions in accordancewith the criteria laid downand recommend to theBoard their appointment andremoval;
b) carryoutevaluationofeveryDirector'sperformancealongwiththeBoard;
*Included as per the amendment by SEBI (Listing Obligations and Disclosure Requirements) (Amendment)Regulations,2018
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24thAnnualReport2019 52
c) formulatethecriteriafordeterminingquali�ications,positiveattributesandindependenceofaDirectorandrecommendtotheBoardapolicyrelatingtotheremunerationoftheDirectors;keymanagerialpersonnelandotheremployees;
d) formulatethecriteriaforperformanceevaluationofIndependentDirectorsandtheBoard;e) deviseapolicyonBoarddiversity;f) Evaluate the level and composition of remuneration tobe reasonable and suf�icient to attract, retainand
motivateDirectorsofthequalityrequiredtoruntheCompanysuccessfully.g) Ensure that relationship of remuneration to performance is clear and meets appropriate performance
benchmarks;h) Whether to extend or continue the termof appointment of the independentdirector, on the basis of the
reportofperformanceevaluationofindependentdirectors.i) torecommendtotheboard,allremuneration,inwhateverform,payabletoseniormanagement.*
*Included as per the amendment by SEBI (Listing Obligations and Disclosure Requirements) (Amendment)Regulations,2018
ii) Composition
From 1st April, 2018 to 31st March 2019, the Nomination and Remuneration Committee comprised of the
followingmembers:
1. Mr.AnkurSangal(Non-Executive,IndependentDirector)-Chairman2. Ms.Sonal(Non-Executive,IndependentDirector)-Member 3. Mr.AmitAgarwal(Non-ExecutiveDirector) - Member
iii) MeetingsandAttendanceduringtheyear:
Duringthe�inancialyearended31stMarch,2019,theNomination&RemunerationCommitteehasmetonetime:10/10/2018
AttendanceoftheDirectorsattheNominationandRemunerationCommitteeason31stMarch,2019isasfollows:
Director Category No.ofMeetingsHeld AttendedMrAnkurSangal Chairman 1 1Mr.AmitAgarwal Member 1 1Ms.Sonal Member 1 1
(iv)PolicyforselectionandappointmentofDirectorsandtheirRemuneration
TheNominationandRemunerationCommitteehasadoptedapolicy forselectionof appointmentofdirectors
andtheirremuneration.Thehighlightsofthispolicyareasfollows:
1. CriteriaofselectionofNonExecutiveDirectorsa. TheNon Executive Directors shall be of high integritywith relevant expertise and experience so as to have adiverseBoardwithDirectorshaving expertise in the �ieldsofmarketing, �inance, taxation, law,governanceandgeneralmanagement.
b.IncaseofappointmentofIndependentDirectors,theCommitteeshallsatisfyitselfwithregardtotheindependent
nature of the Directors vis-a-vis the Company so as to enable the Board to discharge its function and duties
effectively.
c. The Committee shall ensure that the candidate identi�ied for appointment as aDirector is not disquali�ied for
appointmentunderSection164oftheCompaniesAct,2013.
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24thAnnualReport2019 53
d. The Committee shall consider the following attributes / criteria, whilst recommending to the Board the
candidatureforappointmentasDirector.
i.Quali�ication,expertiseandexperienceoftheDirectorsintheirrespective�ields;
ii.Personal,Professionalorbusinessstanding;
iii.DiversityoftheBoard.
e. In case of re-appointment ofNonExecutiveDirectors, theBoard shall take into consideration the performance
evaluationoftheDirectorandhisengagementlevel.
2. Remuneration
TheNonExecutiveDirectorsshallbeentitledtoreceiveremunerationbywayofsittingfeesforparticipationinthe
Board/Committeemeetingsandcommissionasdetailedhereunder:
i. ANonExecutiveDirector shall be entitled to receive sitting fees for eachmeeting of theBoard or Committee
meetingattendedbyhim/herathis/herdiscretionof suchsumasmaybeapprovedby theBoardofDirectors
within the overall limits prescribed under the Companies Act, 2013 and The Companies (Appointment and
RemunerationofManagerialPersonnel)Rules,2014;
ii.TheIndependentDirectorsoftheCompanyshallnotbeentitledtoparticipateintheStockOptionSchemeofthe
Company,ifany,introducedbytheCompany.
3. ManagingDirector&WholeTimeDirector-Criteriaforselection/appointment
ForthepurposeofselectionoftheManagingDirectororWholeTimeDirectortheCommitteeshallidentifypersons
of integritywhopossessrelevantexpertise,experienceandleadershipqualitiesrequiredforthepositionandshall
takeintoconsiderationrecommendation,ifany,receivedfromanymemberoftheBoard.
The Committee will also ensure that the incumbent ful�ills such other criteria with regard to age and other
quali�icationsaslaiddownundertheCompaniesAct,2013orotherapplicablelaws.
RemunerationfortheManagingDirectororWholeTimeDirector
i.Atthetimeofappointmentorre-appointment,theManagingDirectororWholeTimeDirectormaybepaidsuch
remunerationasmaybemutuallyagreedbetweentheCompany(whichincludesthenomination&Remuneration
CommitteeandtheBoardofDirectors)andtheManagingDirectororWholeTimeDirectorwithintheoveralllimits
prescribedundertheCompaniesAct,2013.
ii.TheremunerationshallbesubjecttotheapprovaloftheMembersoftheCompanyinGeneralMeeting.
iii.TheremunerationoftheManagingDirectororWholeTimeDirectorshallcompriseonlyofthe�ixedcomponent.
The�ixedcomponentshallcomprisesalary,allowances,perquisites,amenitiesandretrialbene�its.
RemunerationPolicyfortheSeniorManagementEmployees
I.IndeterminingtheremunerationoftheSeniorManagementEmployees(i.e.KMPsandseniorof�icersjustbelow
the board level) the Committee shall ensure / consider the relationship of remuneration and performance
benchmarkisclear;
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24thAnnualReport2019 54
II.TheManagingDirectororWholeTimeDirectorwill carryout the individualperformancereviewbasedon the
standardappraisalmatrixand shall take into account the appraisal score cardand other factorsand thereafter
shallrecommendtheannualincrementandperformanceincentivetotheCommitteeforitsreviewandapproval.
iv) DetailsofRemunerationofdirectorsDuringthe�inancialyearended31stMarch,2019,theCompanyhaspaidthefollowingremunerationtotheDirectors:
NameofDirector Category Remuneration SittingFees No. of shares
held as on
31/03/2019
Mr.DeepakGoel ExecutiveDirector 18,00,000/- Nil 11000
Mr.PraveenKumarGoel ExecutiveDirector 18,00,000/- Nil 117000
Mr.AmitAgarwal Non-ExecutiveDirector Nil 10,000/- Nil
Mr.ShubhakarPathak Non-Executive
IndependentDirector
Nil 5,000/- Nil
Mr.AnkurSangal Non-Executive
IndependentDirector
Nil 10,000/- Nil
Ms.Sonal Non-Executive
IndependentDirector
Nil 10,000/- Nil
4. STAKEHOLDERRELATIONSHIPCOMMITTEE:
i) TermsofReference
During the period under review, the Stakeholder Relationship committee scope was amended as per the
amendments by the SEBI (Listing Obligations and Disclosure Requirements)
(Amendment)Regulations,2018insertedw.e.f1stApril2019.The roleandprimarypurposeof theCommittee,
amongotherthings,isthefollowing:-
(1) To resolve the grievances of the security holders of company including complaints related to
transfer/transmission of shares, non-receipt of annual report, non-receipt of declared dividends, issue of
new/duplicatecerti�icates,generalmeetingsetc.
(2)Reviewofmeasurestakenforeffectiveexerciseofvotingrightsbyshareholders.
(3)Reviewofadherencetotheservicestandardsadoptedbythe companyinrespectofvariousservicesbeing
renderedbytheRegistrar&ShareTransferAgent.
(4)Reviewofthevariousmeasuresandinitiativestakenby thecompanyforreducingthequantumofunclaimed
dividends and ensuring timely receipt of dividend warrants/annual reports/statutory notices by the
shareholdersofthecompany.
(5)ApprovesharetransferandoverseeandreviewallmattersconnectedwithtransferofCompanySecurities.
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24thAnnualReport2019 55
ii) Composition
Duringtheyear,Mr.AnkurSangal,IndependentDirectorofthecompanyappointedasmemberoftheStakeholder
Relationship Committee in the Board Meeting held on 13.02.2019 and now the committee comprised of the
followingdirectorsasmembers:
Mr.AmitAgarwal(Non-ExecutiveDirector) -Chairman
Mr.DeepakGoel(WholeTimeDirector) -Member
Mr.AnkurSangal(Non-ExecutiveIndependentDirector) -Member
iii) MeetingsandAttendanceduringtheyear:
Duringthe�inancialyearended31stMarch,2019theStakeholdersRelationshipCommitteehasmet7times:
24/05/2018,11/07/2018,17/10/2018,16/11/2018,03/12/2018,10/01/2019,24/01/2019.
AttendanceoftheDirectorsattheStakeholderRelationshipCommitteeason31stMarch,2019isasfollows:
*NomeetingofSRCheldaftertheappointmentofMr.AnkurSangalasmember
Thecompanysecretaryofthecompanyisthecomplianceof�icer.Thenumberofcomplaintsreceivedfromtheshareholdersduringthelast�inancialyear-NILNumberofcomplaintsnotsolvedtothesatisfactionofshareholders-NILNumberofpendingcomplaints-NIL
BoththephysicaltransferanddematerializationofthesharesarehandledbyRegistrar&ShareTransferagentM/sBeetalFinancialandComputerServicesPrivateLimited.IntermsoftherequirementofSEBIdirectivesthecompanyisprovidingthefacilityoftransferanddematerializationofsecuritiessimultaneously.RiskManagementTheAuditCommitteeregularlyreviewstheriskmanagementstrategyoftheCompanytoensuretheeffectivenessofriskmanagementpoliciesandprocedures.
GENERALBODYMEETINGS:
i) Locationandtime,wherelastthreeAGMheld&Specialresolutionpassedintheprevious3AGMs.AGM DATE LOCATION TIME SPECIAL RESOLUTION
PASSEDINAGM
23rdAGM 26.09.2018 BipinChandraPalMemorialBhavan,A-81,ChittranjanPark,NewDelhi-19
11:00AM 1) Alteration of Memorandum
of Association of the
Company
Director Category No.ofMeetingsheld Attended
Mr.AmitAgarwal Chairman 7 7
Mr.DeepakGoel Member 7 7
Mr.AnkurSangal* Member - -
NEERAJPAPERMARKETINGLTD.
24thAnnualReport2019 56
22ndAGM 28.09.2017 BipinChandraPalMemorialBhavan,A-81,ChittranjanPark,NewDelhi-19
11:30AM N.A.
21stAGM 29.09.16 BipinChandraPalMemorialBhavan,A-81,ChittranjanPark,NewDelhi-19
11:00AM N.A.
ii) DETAIL OF VOTING PATTERN OF SPECIAL RESOLUTION PASSED BY POSTAL BALLOT LAST YEAR - No
resolutionwaspassedbypostalballotduringthelastyear.MEANSOFCOMMUNICATION:ThequarterlyresultsaspertheformatprescribedbytheStockExchangeforthequarterended30thJune2018and
30thSeptember2018werepublishedintheVeerArjunandPioneerandforquarterended31stDecember2018and
31stMarch2019werepublishedinFinancialExpressandJansattaandarealsosubmittedtoalltheStockExchanges
where the Company’s shares are listed. Further these results are also available on our website
www.neerajpaper.com.YourCompanybelievesthatallthestakeholdersshouldhaveaccesstoadequateinformation
about the Company. All information,which could have amaterial bearing on the share prices, is released at the
earliest to all the stock exchangewhere the share of company are listed in accordancewith the requirements of
listingagreement.
GENERALSHAREHOLDERINFORMATION
Registeredof�ice 218-222,2ndFloor,AggarwalPrestigeMall,PlotNo.2,Community
Centre,AlongRoadno.44,Pitampura,Delhi-110034
AnnualGeneralMeeting
Date 30thSeptember,2019
Time 11.00A.M
Venue BipinChandraPalMemorialBhavan,A-81,ChittranjanPark,NewDelhi-110019
FinancialYear 1stAprilto31stMarch
Adoption of �inancial results(Tentative)
FortheQuarterended30thJune,2019 OnorBefore14thAugust2019
For the Quarter ended 30th September,
2019
OnandBefore14thNovember,2019
For the Quarter ended 31st December,
2019
OnandBefore14thFebruary,2020
NEERAJPAPERMARKETINGLTD.
24thAnnualReport2019 57
FortheQuarterended31stMarch,2020 OnandBefore30thMay,2020
DateofBookClosure From Monday 23/09/2019 to Monday 30/09/2019 (Both days
inclusive)
Dividendpaymentdate Notapplicable
ListingofsharesonStockExchanges BSELimited–PJTowers,DalalStreet,Mumbai–400001
AhmedabadStockExchangeLimited–KamdhenuComplex,Opp.
SahajanandCollege,PanjaraPole,Amdawadi,Ahmedabad–380015
Listingfeesasapplicablehavebeenpaid.
StockCode BSELtd-539409
NSDL/CDSLISIN ISINNo–INE894J01019
RevisionofCreditRating
Duringtheperiodunderreview,thecompanyhasobtainedcreditratingfromIndiaRatings&Researchinwhichthe
ratingofthecompanyhasrevisedtoNegativefromStablewhileaf�irmingitsLongTermIssuerratingat‘INDBB+’.
Theinstrument-wiseratingactionsareasfollows:
InstrumentType Rating/Outlook RatingAction
Fund Based Working Capital
Limits
INDBB/Negative/INDA4+ Rating af�irmed; Outlook revised
toNegativefromStable
Non-FundBasedWorkingCapital
Limits
INDA4+ Af�irmed
OTHERDISCLOSURESDisclosure on materially signi�icant related party transactions that may have potential con�lict with theinterestsoftheCompany.There were no materially signi�icant related party transactions with the Company's Promoters, Directors,Managementortheirrelatives,whichcouldhavehadapotentialcon�lictwiththeinterestsoftheCompany.
TransactionswithrelatedpartiesenteredintobytheCompanywereintheordinarycourseofbusinessandonanArm’slengthbasis.TheseareperiodicallyplacedbeforetheAuditCommitteeforreview. Particularsofcontractsorarrangements or transactions inFormAOC-2 isattachedasAnnexure–III ofBoardReport.Membersmayalsorefertothenotestotheaccountsfordetailsofrelatedpartytransactions.TheBoardofDirectorsoftheCompanyhas,on the recommendation of the Audit Committee, adopted a policy on dealingwith related party Transactions toregulatetransactionsbetweentheCompanyanditsRelatedParties,incompliancewiththeapplicableprovisionsoftheCompaniesAct2013,theRulesthereunderandtheListingAgreement.ThepolicyhasalsobeenuploadedonthewebsiteoftheCompanyathttp://www.neerajpaper.com/index.php?page=code_conduct
NEERAJPAPERMARKETINGLTD.
24thAnnualReport2019 58
DisclosureofAccountingTreatment The Company followed the guidelines as laid down in the IND-AS, prescribed by the Institute of CharteredAccountantsofIndia,forthepreparationofthe�inancialstatements. Detailsofnon-compliancebythecompany,penaltiesimposedonthecompanybystockexchangeorSEBIor
anystatutoryauthority,onanymatterrelatedtothecapitalmarket,duringthelast3years.
IntermsoftheSEBIcircularno:CIR/CFD/CMD/12/2015datedNovember30,2015,inthematterofnoncompliance
ofRegulation33forlatesubmissionofFinancialresultsforthequarterendedMarch2018,BombayStockExchange
(BSE)imposedthepenaltyonthecompanyfortheamountofRs.10,000/-.Howeverthisdefaultswasmadedueto
thetechnicalerrorofthesystem&companyhaspaidtheentirepenaltyamount.
WhistleBlowerPolicy
InPursuanttoListingRegulationandasperSection177oftheCompaniesAct,2013,thecompanyhasestablisheda vigil mechanism/Whistle Blower policy for the directors and employees to report genuine concerns orgrievancesaboutunethicalbehaviour,actualorsuspectedfraudorviolationofthecompany’sCodeofConductorEthics Policy. The Vigil Mechanism Policy has been uploaded on the website of the Company athttp://www.neerajpaper.com/index.php?page=vigil_mechanism.During the year under review, no employeewasdeniedaccesstotheAuditCommittee.Compliancewithmandatoryrequirementsandadoptionofthenon-mandatoryrequirements
MandatoryRequirements
TheCompanyhascompliedwithalltheapplicablemandatoryrequirementsasprovidedinSEBI(ListingObligations&DisclosureRequirements)Regulations,2015.Adoptionofnon-mandatoryrequirementsunderListingAgreementi)TheBoard:Sincethecompanydoesnothaveanonexecutivechairmanitdoesnotmaintainsuchof�ice.ii)ShareholdersRights:Thequarterly�inancialresultsarepublishedinwidelycirculateddailiesandalsouploadedonCompany’swebsite.iii)AuditQuali�ication:Duringtheyearunderreview,therewasnoauditquali�icationintheAuditors'ReportontheCompany's�inancialstatements.iv)SeparatepostsofChairmanandCEO:ThecompanydoesnothaveaCEOandthereforetherearenoseparateposts.v)ReportingofInternalAuditor:Theinternalauditorreportstoauditcommittee.
Weblinkwherepolicyfordeterminingmaterialsubsidiariesisdisclosed
NEERAJPAPERMARKETINGLTD.
24thAnnualReport2019 59
Notapplicableasthereisnosubsidiaryofthecompany.
Weblinkwherepolicyondealingwithrelatedpartytransactions
https://www.neerajpaper.com/POLICY%20FOR%20RELATED%20PARTY%20TRANSACTION-2.pdf
CommodityPriceRiskandCommodityHedgingactivities
Company is engaged in trading activity and no manufacturing activity is carried out in the company. Thus, no
commoditypriceriskisthereinthecompanyandnohedgingactivitiesarerequiredforthesame.
Certi�icatefromPracticingCompanySecretary
Thecerti�icatefromPracticingCompanySecretarythatnoneofthedirectorsontheboardofthecompanyhavebeen
debarred or disquali�ied frombeing appointed or continuing asdirectors of companiesby theBoard/Ministry of
CorporateAffairsoranysuchstatutoryauthorityisannexedherewith.
TotalFeespaidforallservicestoStatutoryAuditorsoftheCompany
The total fees for all services paid by the listed entity to the statutory auditor and all entities in the network
�irm/networkentityofwhichthestatutoryauditorisapartisRs.1.75Lacs.
DisclosuresundertheSexualHarassmentofWomenatWorkplace(Prevention,ProhibitionandRedressal)
Act,2013:
a)No.ofcomplaints�iledduringtheyear:Nil
b)No.ofcomplaintsdisposedduringtheyear:Nil
c)No.ofcomplaintspendingasonendofthe�inancialyear:Nil
MarketPriceData:High,Lowduringeachmonthinlast�inancialYear*
(Rs.Pershare)
BSELtd.
MONTH HIGH LOW
April,2018 16 14.45
May,2018 15.17 14.45
June,2018 15.09 15.09
July,2018 15.8 15.09
Aug,2018 15.8 14.3
Sep,2018 19.4 15.75
October,2018 22.4 19.4
November,2018 20.25 17.4
December,2018 17.4 16.55
January,2019 17.4 16.55
February,2019 17.3 16.5
March,2019 16.45 13.5
NEERAJPAPERMARKETINGLTD.
24thAnnualReport2019 60
PerformanceincomparisontobroadbasedindicessuchasBSESensex:*
*Source-www.bseindia.com
Registrar&ShareTransferAgentBeetalFinancialandComputerServicesPvtLimited,
BeetalHouse,3rdFloor,99,Madangir,
BehindLocalShoppingCenter,
NearDadaHarsukhdasMandir,NewDelhi-110062
0
5000
10000
15000
20000
25000
30000
35000
40000
45000
BSE
SEN
SEX
Company Share Price & BSE Sensex
Close Price of NPML
Close Price of BSE SENSEX
CLOSINGPRICE
MONTH BSESENSEX NEERAJPAPERMARKETINGLTD.
April,2018 35160.36 14.45
May,2018 35322.38 15.09
June,2018 35423.48 15.09
July,2018 37606.58 15.8
Aug,2018 38645.07 15.75
Sep,2018 36227.14 19
October,2018 34442.05 21.3
November,2018 36194.3 17.4
December,2018 36068.33 16.55
January,2019 36256.69 16.55
February,2019 35867.44 17.3
March,2019 38672.91 13.5
NEERAJPAPERMARKETINGLTD.
24thAnnualReport2019 61
ShareTransferSystemThepowertoapprovethetransferofsecuritieshasbeendelegatedbytheBoardtotheShareTransferAgents.Sharetransferrequestsareprocessedwithinanaverageof15daysfromthedateofreceipt.Shareholdersareencouragedtooptfordematerialisationofthephysicalsharesinwhichcaseelectroniccreditismade.Itshouldbenotedthat:_TheauthorityrelatingtosharetransfershasbeendelegatedtotheStakeholders'RelationshipCommittee_TheBoardhasauthorisedtheRegistrar&ShareTransferAgents ‘BeetalFinancialandComputerServicesPrivateLimited’toapproveallroutinetransfersandtransmissionsofshareswhichareeffectedwithin15days.DistributionofShareholdingTheDistributionoftheshareholdingoftheequitysharesason31stMarch,2019areasfollows:
NoofEquity
sharesheld
No.of
shareholders
%ofshare
holders
Totalnumberof
shares%ofshareholding
1–5000 2186 77.46 733102 6.67
5001-10000 237 8.39 200065 1.81
10001-20000 218 7.72 359009 3.27
20001–30000 54 1.91 133135 1.21
30001–40000 22 0.77 79700 0.72
40001–50000 24 0.85 102000 0.92
50001-100000 31 1.09 236064 2.15
100001&above 50 1.77 9156925 83.25
Total 2822 100.00 11000000 100
CategoriesofShareholdersason31stMarch,2019
Category Totalnoofshares %ofshareholding
Promoters/Relatives/PromotersCompanies 3061704 27.83
FinancialInstitutions/Banks - -
FIIs - -
MutualFunds - -
PrivateCorporatebodies 5960262 54.19
IndianPublic 1978034 17.98
NEERAJPAPERMARKETINGLTD.
24thAnnualReport2019 62
`NRI/OCBs - -
Others - -
Total 11000000 100
DematerializationofsharesandLiquidity
The tradingof thesharesof thecompany ispermitted indematerialization formasper thenoti�ication issuedbySEBI.ThecompanyhasenteredintoagreementwithNSDLandCDSLforgivingeffecttothesame.
OutstandingGDR/ADRs/Warrants/Options
TheCompanyhasnotissuedGDRsorADRs.Therearenooutstandingwarrantsoranyconvertibleinstruments.
PlantLocations
Companyisinvolvedinthetradingbusinessonlyandthusthereisnomanufacturingplantofthecompany.
AddressforCorrespondence
For share certi�icate, change of address and
anyotherqueryrelatingtotheshares
M/sBeetalFinancialandComputerServicesPvtLtd;
BeetalHouse,3rdFloor,99,Madangir,BehindLocalShopping
Center,NearDadaHarsukhdasMandir,NewDelhi-110062
ForInvestorAssistance Ms.MansiTanejaCompanySecretary218-222, 2nd Floor, Aggarwal Prestige Mall, Plot No. 2,
Community Centre, Along Road no. 44, Pitampura, Delhi-
110034
Emailid:mansi@neerajpaper.comContactNo.:011-47527700
Disclosureswithrespecttodematsuspenseaccount/unclaimedsuspenseaccountTheCompanyhasnosharesinthedematsuspenseaccountorunclaimedsuspenseaccount,hencetheabovedisclosureisnotapplicable.CEO/CFOCerti�icateThe Whole Time Director and the CFO have furnished the requisite certi�icate to the Board of Directors underRegulation17(8)oftheSEBI(ListingObligationsandDisclosureRequirements)Regulations,2015.
NEERAJPAPERMARKETINGLTD.
24thAnnualReport2019 63
CompliancewithMandatoryRequirementsThe Company has complied with all the mandatory corporate governance requirements under the ListingRegulations.Further,thecompanycon�irmsthecompliancewiththerequirementsspeci�iedinregulation17to27andclauses(b)to(i)ofsub-regulation(2)ofregulation46ofSEBI(ListingObligationsandDisclosureRequirements)Regulations,2015.CORPORATEGOVERNANCECOMPLIANCEThe company has complied with the Para E of Schedule V of the SEBI (Listing Obligations and DisclosureRequirements)Regulations,2015 forthepurposeofensuringCorporateGovernance.Acerti�icatetothiseffecthasbeenobtained fromM/sRajeevSinghal&Co.,CharteredAccountants;StatutoryAuditorof thecompanyhasbeenattachedtothisAnnualReport.Note:TheCorporateGovernancereportisason31stMarch,2019
NEERAJPAPERMARKETINGLTD.
24thAnnualReport2019 64
CERTIFICATIONFROMPRACTICINGCOMPANYSECRETARY(PURSUANTTOCLAUSE10OFPARTCOFSCHEDULEVOFSEBI(LISTINGOBLIGATIONANDDISCLOSUREREQUIREMENT)REGULATIONS,2015)
We have examined the relevant registers, records, forms, returns and disclosures received from Neeraj PaperMarketing Limited having CIN L74899DL1995PLC066194 (hereinafter referred to as ‘the Company’), producedbeforeusbytheCompanyforthepurposeofissuingthisCerti�icate,inaccordancewithRegulation34(3)readwithSchedule V Para-C Sub clause 10 of the Securities Exchange Board of India (Listing Obligations and DisclosureRequirements)Regulations,2015.InouropinionandtothebestofourinformationandaccordingtotheexplanationsgiventousandthedeclarationsasreceivedfromtheDirectorsoftheCompanyinthisregard,wecertifythat:“noneoftheDirectorsontheBoardofDirectorsoftheCompanyfortheFinancialyearendingon31stMarch2019havebeendebarredordisquali�iedfrombeingappointedorcontinuingasDirectorsoftheCompanybytheSecuritiesandExchangeBoardofIndia/MinistryofCorporateAffairsoranysuchstatutoryauthority”Ensuringtheeligibilityoffortheappointment/continuityofeveryDirectorontheBoardistheresponsibilityofthemanagementof theCompany.Ourresponsibility is toexpressanopinionon thesebasedonourveri�ication.Thiscerti�icateisneitheranassuranceastothefutureviabilityoftheCompanynoroftheef�iciencyoreffectivenesswithwhichthemanagementhasconductedtheaffairsoftheCompany.
ForShaillyGoel&Co.PracticingCompanySecretaries
S/d
ShaillyGoelDATED:13THAUGUST2019 CompanySecretary PLACE:DELHI
MembershipNo.-FCS8769C.PNo-9196
NEERAJPAPERMARKETINGLTD.
24thAnnualReport2019 65
CERTIFICATION UNDER REGULATION 17(8) OF SEBI (LISTING OBLIGATION AND DISCLOSUREREQUIREMENT)REGULATIONS,2015(a) Thatwehavereviewedthe�inancialstatementsandthecash�lowstatementfortheyearending31stMarch,
2019andthattothebestoftheirknowledgeandbelief:(i) These statements do not contain any materially untrue statement or omit any material fact or
containstatementsthatmightbemisleading;
(ii) These statements together present a true and fair view of the company’s affairs and are incompliancewithexistingaccountingstandards,applicablelawsandregulations.
(b) Thattothebestofourknowledgeandbelief,therearenotransactionsenteredintobythecompanyduringtheyear,whicharefraudulent,illegalorviolativeofthecompany’scodeofconduct.
(c) Thatweacceptresponsibilityforestablishingandmaintaininginternalcontrolsfor�inancialreportingandthatwehaveevaluatedtheeffectivenessofinternalcontrolsystemsofthecompanypertainingto�inancialreporting and we have disclosed to the auditors and the Audit Committee, de�iciencies in the design oroperationofsuchinternalcontrols,ifany,ofwhichweareawareandthestepstheyhavetakenorproposetotaketorectifythesede�iciencies.
(d) ThatwehadindicatedtotheauditorsandtheAuditcommittee–(i) Signi�icantchangesininternalcontrolover�inancialreportingduringtheyear;(ii) Signi�icantchangesinaccountingPoliciesduringtheyearandthatthesamehavebeendisclosedin
thenotestothe�inancialstatements;and(iii) Instancesofsigni�icantfraudofwhichwehavebecomeawareandtheinvolvementtherein,ifany,of
themanagementorotheremployeeswhohaveasigni�icantroleinthecompany’sinternalcontrolsystemsover�inancialreporting.
FORNEERAJPAPERMARKETINGLIMITED FORNEERAJPAPERMARKETINGLIMITED
SD/- SD/-DEEPAKGOEL VIPINGOELWHOLETIMEDIRECTOR CHIEFFINANCIALOFFICERDIN:00200527
DATED:13THAUGUST2019 PLACE:DELHI
NEERAJPAPERMARKETINGLTD.
24thAnnualReport2019 66
DECLARATIONBYTHEWHOLETIMEDIRECTORONTHECOMPLIANCEOFTHECODEOFCONDUCTASLAID
DOWNBYTHEBOARDOFDIRECTORSOFTHECOMPANY
I,DEEPAKGOEL,Whole Time Director of Neeraj PaperMarketing Limited hereby certify that the Directors and
membersofseniormanagementhaveaf�irmedthecompliancewiththecodeofconduct.
Theabovesubmissionisbasedonthedeclarationsasreceivedfromthememberstowhomthecodeappliesandalso
onthebasisofthesubmissionofthecomplianceof�icertothecode.
FORNEERAJPAPERMARKETINGLIMITED
DATED:13THAUGUST2019 PLACE:DELHISD/- DEEPAKGOEL (WHOLETIMEDIRECTOR)
DIN:00200527
NEERAJPAPERMARKETINGLTD.
24thAnnualReport2019 67
AUDITORS’CERTIFICATEONCORPORATEGOVERNANCE
TotheMembersofNEERAJPAPERMARKETINGLIMITED
We have examined the compliance of the conditions of Corporate Governance by NEERAJ PAPERMARKETINGLIMITED during the year ended 31stMarch, 2019 as stipulated in Chapter IV read with Schedule V of the SEBI(ListingObligationAndDisclosureRequirement)Regulations,2015ofthesaidCompanywiththeStockExchanges.ThecomplianceoftheconditionsofCorporateGovernanceistheresponsibilityofthemanagement.Ourexaminationwas limited to the review of the procedures and implementation thereof, adopted by the Company for ensuringcompliancewiththeconditionsofCorporateGovernance.Itisneitheranauditnoranexpressionofopiniononthe�inancialstatementofthecompany.Inouropinionandtothebestofour informationandexplanationgiventousbythecompany,wecertifythattheCompanyhascompliedwith theconditionsofCorporateGovernanceas stipulated in theabove-mentionedListingAgreementorSEBIRegulations,asandwhenapplicable.We further state that such compliance is neither an assurance as to the future viability of the Company nor theef�iciencyoreffectivenesswithwhichtheManagementhasconductedtheaffairsoftheCompany.
FORM/S.RAJEEVSINGAL&CO.FIRMREGISTRATIONNO:008692C
CHARTEREDACCOUNTANT
Sd/-
(CASUNILKUMAR)DATED:13THAUGUST2019 PARTNERPLACE:DELHIMEMBERSHIPNO.408730
NEERAJPAPERMARKETINGLTD.
24thAnnualReport2019 68
INDEPENDENTAUDITOR’SREPORT
TOTHEMEMBERSOFNEERAJPAPERMARKETINGLIMITED
ReportontheAuditoftheStandaloneFinancialStatementsOpinion
We have audited the accompanying standalone �inancial statements of Neeraj Paper Marketing Limited (“the
Company”),whichcomprisetheBalanceSheetasatMarch31,2019,theStatementofPro�itandLoss(includingOther
ComprehensiveIncome),theStatementofChangesinEquityandtheStatementofCashFlowsfortheyearendedonthat
date,andasummaryofthesigni�icantaccountingpoliciesandotherexplanatoryinformation(hereinafterreferredto as
“thestandalone�inancial statements”).
Inouropinionandtothebestofourinformationandaccordingtotheexplanationsgiventous,theaforesaidstandalone
�inancialstatementsgivetheinformationrequiredbytheCompaniesAct,2013(“theAct”)inthemannersorequired
andgiveatrueandfairviewinconformitywiththeIndianAccountingStandardsprescribedundersection133ofthe
ActreadwiththeCompanies(IndianAccountingStandards)Rules,2015,asamended,(“IndAS”)andotheraccounting
principlesgenerallyacceptedinIndia,ofthestateofaffairsoftheCompanyasatMarch31,2019,thepro�itandtotal
comprehensiveincome,changesinequityanditscash�lowsfortheyearendedonthatdate.
BasisforOpinion
Weconductedourauditofthestandalone�inancialstatements inaccordancewiththeStandardsonAuditingspeci�ied
undersection143(10)oftheAct(SAs).OurresponsibilitiesunderthoseStandardsarefurtherdescribedintheAuditor’s
ResponsibilitiesfortheAuditoftheStandaloneFinancialStatementssectionofourreport.Weareindependentofthe
Company in accordance with the Code of Ethics issued by the Institute of Chartered Accountants of India (ICAI)
togetherwith the independence requirements that are relevant to our audit of the standalone �inancial statements
undertheprovisionsoftheActandtheRulesmadethereunder,andwehaveful�illedourotherethicalresponsibilitiesin
accordancewiththeserequirementsandtheICAI’sCodeofEthics.Webelievethattheauditevidencewehaveobtained
issuf�icientandappropriatetoprovideabasisforourauditopiniononthestandalone�inancialstatements.
KeyAuditMatters
Key auditmattersare thosematters that, inourprofessional judgment,were ofmostsigni�icance inourauditof the
standalone�inancialstatementsofthecurrentperiod.Thesematterswereaddressedinthecontextofourauditofthe
standalone �inancial statements as a whole, and in forming our opinion thereon, and we do not provide a separate
opiniononthesematters.
InformationOtherthantheStandaloneFinancialStatementsandAuditor’sReportThereon
TheCompany’sBoardofDirectors isresponsiblefor thepreparationof theother information.Theother information
comprisestheinformationincludedintheManagementDiscussionandAnalysis,Board’sReportincludingAnnexureto
Board’s Report, Business ResponsibilityReport, Corporate Governance and Shareholder’s Information, but does not
includethestandalone�inancialstatementsandourauditor’sreportthereon.
Ouropiniononthestandalone�inancialstatementsdoesnotcover theother informationandwedonotexpressany
formofassuranceconclusionthereon.
Inconnectionwithourauditofthestandalone�inancialstatements,ourresponsibilityistoreadtheotherinformation
and, indoing so, considerwhether the other information ismaterially inconsistent with the standalone �inancial
statementsorourknowledgeobtainedduringthecourseofourauditorotherwiseappearstobemateriallymisstated.
If,basedontheworkwehaveperformed,weconcludethatthereisamaterialmisstatementofthisotherinformation;
NEERAJPAPERMARKETINGLTD.
24thAnnualReport2019 69
wearerequiredtoreportthatfact.Wehavenothingtoreportinthisregard.
Management’sResponsibilityfortheStandaloneFinancialStatements
TheCompany’sBoardofDirectorsisresponsibleforthemattersstatedinsection134(5)oftheActwithrespectto
thepreparationofthesestandalone�inancialstatementsthat givea trueand fairviewofthe�inancialposition,
�inancialperformance,totalcomprehensiveincome,changesinequityandcash�lowsoftheCompanyinaccordance
with the Ind AS and other accounting principles generally accepted in India. This responsibility also includes
maintenanceofadequateaccountingrecordsinaccordancewiththeprovisionsoftheActforsafeguardingtheassets
oftheCompanyandforpreventinganddetectingfraudsandotherirregularities;selectionandapplicationofappropriate
accountingpolicies;makingjudgmentsandestimatesthatarereasonableandprudent;anddesign,implementationand
maintenance of adequate internal �inancial controls, that were operating effectively for ensuring the accuracy and
completeness of the accounting records, relevant to the preparation and presentation of the standalone �inancial
statementsthatgiveatrueandfairviewandarefreefrommaterialmisstatement,whetherduetofraudorerror.
In preparing the standalone �inancial statements,management isresponsible for assessing theCompany’sability to
continueasagoingconcern,disclosing,asapplicable,mattersrelatedtogoingconcernandusingthegoingconcern
basisofaccountingunlessmanagementeitherintendstoliquidatetheCompanyortoceaseoperations,orhasnorealistic
alternativebuttodoso.
ThoseBoardofDirectorsarealsoresponsibleforoverseeingtheCompany’s�inancialreportingprocess.
Auditor’sResponsibilitiesfortheAuditoftheStandaloneFinancialStatements
Ourobjectivesaretoobtainreasonableassuranceaboutwhether thestandalone�inancialstatementsasawholeare
free frommaterialmisstatement,whether due to fraud or error, and to issuean auditor’s report that includesour
opinion.Reasonableassuranceisahighlevelofassurance,butisnotaguaranteethatanauditconductedinaccordance
withSAswillalwaysdetectamaterialmisstatementwhenitexists.Misstatementscanarisefromfraudorerrorand
areconsideredmaterialif,individuallyorintheaggregate,theycouldreasonablybeexpectedtoin�luencetheeconomic
decisionsofuserstakenonthebasisofthesestandalone�inancial statements.
As part of an audit in accordance with SAs, we exercise professional judgment and maintain professional
skepticismthroughouttheaudit.Wealso:
� Identifyandassesstherisksofmaterialmisstatementofthestandalone�inancialstatements,whetherduetofraud
or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is
suf�icient and appropriate to providea basis for ouropinion.The risk of notdetecting amaterialmisstatement
resultingfromfraudishigherthanforoneresultingfromerror,asfraudmayinvolvecollusion,forgery,intentional
omissions,misrepresentations,ortheoverrideofinternal control.
� Obtainanunderstandingofinternal�inancialcontrolsrelevanttotheauditinordertodesignauditproceduresthat
areappropriateinthecircumstances.Undersection143(3)(i)oftheAct,wearealsoresponsibleforexpressing
ouropiniononwhether theCompanyhasadequate internal�inancialcontrolssystem inplaceandtheoperating
effectivenessofsuchcontrols.
� Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and
relateddisclosuresmadebymanagement.
� Concludeontheappropriatenessofmanagement’suseofthegoingconcernbasisofaccountingand,basedonthe
NEERAJPAPERMARKETINGLTD.
24thAnnualReport2019 70
audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast
signi�icantdoubtontheCompany’sabilitytocontinueasagoingconcern.Ifweconcludethatamaterialuncertainty
exists, we are required to draw attention in our auditor’s report to the related disclosures in the standalone
�inancialstatementsor,ifsuchdisclosuresareinadequate,tomodifyouropinion.Ourconclusionsarebasedonthe
auditevidenceobtaineduptothedateofourauditor’sreport.However,futureeventsorconditionsmaycausethe
Companytoceasetocontinueasagoingconcern.
� Evaluate the overall presentation, structure and content of the standalone �inancial statements, including the
disclosures,andwhetherthestandalone�inancialstatementsrepresenttheunderlyingtransactionsandeventsin
amannerthatachievesfairpresentation.
Materialityisthemagnitudeofmisstatementsinthestandalone�inancialstatements that, individuallyorinaggregate,
makesitprobablethattheeconomicdecisionsofareasonablyknowledgeableuserofthe�inancialstatementsmaybe
in�luenced.Weconsiderquantitativematerialityandqualitative factorsin(i)planningthescopeofourauditworkandin
evaluating the results of our work; and (ii) to evaluate the effect of any identi�ied misstatements in the �inancial
statements.
Wecommunicatewiththosechargedwithgovernanceregarding,amongothermatters,theplannedscopeandtimingof
theauditandsigni�icant audit�indings,includinganysigni�icantde�icienciesininternalcontrolthatweidentifyduringour
audit.
We also provide those charged with governance with a statement that we have complied with relevant ethical
requirements regarding independence, and to communicatewith themallrelationshipsand othermatters thatmay
reasonablybethoughttobearonourindependence,andwhereapplicable,relatedsafeguards.
Fromthematterscommunicatedwiththosechargedwithgovernance,wedeterminethosemattersthatwereofmost
signi�icanceintheauditofthestandalone�inancialstatements ofthecurrentperiodandare therefore thekeyaudit
matters.Wedescribethesemattersinourauditor’sreportunlesslaworregulationprecludespublicdisclosureaboutthe
matter orwhen, inextremely rare circumstances, we determine that amatter shouldnotbecommunicated inour
reportbecause theadverse consequences ofdoingsowouldreasonablybeexpected tooutweighthepublicinterest
bene�itsofsuchcommunication.
ReportonOtherLegalandRegulatoryRequirements
1. AsrequiredbySection143(3)oftheAct,basedonourauditwereport that:
a) Wehavesoughtandobtainedalltheinformationandexplanationswhichtothe best of our knowledge and
beliefwerenecessaryforthepurposesofouraudit.
b) Inouropinion,properbooksofaccountasrequiredbylawhavebeenkeptbytheCompanysofarasitappears
fromourexaminationofthosebooks.
c) TheBalance Sheet, theStatement ofPro�it and Loss includingOther Comprehensive Income, Statement of
ChangesinEquityandtheStatementofCashFlowdealtwithbythisReportareinagreementwiththebooksof
account.
d) Inouropinion,theaforesaidstandalone�inancialstatementscomplywiththeIndASspeci�iedunderSection
133oftheAct,readwithRule7oftheCompanies(Accounts)Rules,2014.
e) On the basis of thewritten representations received from the directors as onMarch 31, 2019 taken on
record by the Board of Directors, none of the directors is disquali�ied as on March 31, 2019 from being
appointedasadirectorintermsofSection164(2)oftheAct.
f) Withrespecttotheadequacyoftheinternal�inancialcontrolsover�inancialreportingoftheCompanyandthe
operatingeffectivenessofsuchcontrols,refertoourseparateReportin“AnnexureA”.Ourreportexpresses
an unmodi�ied opinion on the adequacy and operating effectiveness of the Company’s internal �inancial
controlsover�inancialreporting.
NEERAJPAPERMARKETINGLTD.
24thAnnualReport2019 71
g) Withrespect to theothermatters to be includedintheAuditor’sReport inaccordancewithRule11of the
Companies(AuditandAuditors)Rules,2014,asamendedinouropinionandtothebestofourinformationand
accordingtotheexplanationsgiventous:
i. TheCompanyhasdisclosedtheimpactofpendinglitigationsonits�inancialpositioninitsstandalone
�inancialstatements.
ii. TheCompanyhasmadeprovision,asrequiredundertheapplicablelaworaccountingstandards,for
materialforeseeablelosses,ifany,onlong-termcontractsincludingderivativecontracts.
iii. Therehasbeennodelayintransferringamounts,requiredtobetransferred,totheInvestor
EducationandProtectionFundbytheCompany.
2. AsrequiredbytheCompanies(Auditor’sReport)Order,2016(“theOrder”)issuedbytheCentralGovernmentin
termsofSection143(11)oftheAct,wegivein“AnnexureB”astatementonthemattersspeci�iedinparagraphs3
and4oftheOrder.
FORM/SRAJEEVSINGAL&CO.
FirmRegistrationNo.008692C
CharteredAccountants
Place:Delhi
Dated30thMay2019
CASUNILKUMAR
Partner
M.No.408730
Sd/-
NEERAJPAPERMARKETINGLTD.
24thAnnualReport2019 72
ANNEXURE“A”TOTHEINDEPENDENTAUDITOR’SREPORT
(Referred to inparagraph1(f)under‘ReportonOtherLegalandRegulatoryRequirements’ section ofour
reporttotheMembersofNeerajPaperMarketingLimitedofevendate)
ReportontheInternalFinancialControlsOverFinancialReportingunderClause(i)ofSub-section3
ofSection143oftheCompaniesAct,2013(“theAct”)
Wehaveaudited the internal �inancial controlsover �inancial reportingofNEERAJPAPERMARKETING
LIMITED(“theCompany”)asofMarch31,2019inconjunctionwithourauditofthestandalone �inancial
statementsoftheCompanyfortheyearendedonthatdate.
Management’sResponsibilityforInternalFinancialControls
The Board of Directors of the Company is responsible for establishing andmaintaining internal �inancial
controls based on the internal control over �inancial reporting criteria established by the Company
considering theessentialcomponentsofinternalcontrolstated intheGuidanceNoteonAuditof Internal
FinancialControlsoverFinancialReportingissuedbytheInstituteofCharteredAccountantsofIndia.These
responsibilities includethedesign,implementation andmaintenanceofadequateinternal�inancialcontrols
thatwere operating effectively forensuring the orderly and ef�icient conduct of its business, including
adherencetorespectivecompany’spolicies,thesafeguardingofitsassets,thepreventionanddetectionof
fraudsanderrors,theaccuracyandcompletenessoftheaccountingrecords,andthetimelypreparationof
reliable�inancialinformation,asrequiredundertheCompaniesAct,2013.
Auditor’s Responsibility
Ourresponsibilityistoexpressanopinionontheinternal�inancialcontrolsover�inancialreportingof the
Companybasedonouraudit.Weconducted ouraudit inaccordancewith theGuidanceNoteonAuditof
Internal Financial Controls Over Financial Reporting (the “Guidance Note”) issued by the Institute of
Chartered Accountants of India and the StandardsonAuditing prescribed under Section143(10) of the
Companies Act,2013,totheextentapplicabletoanauditofinternal�inancialcontrols.ThoseStandardsand
theGuidance Note require that we complywith ethical requirements and plan and perform the audit to
obtainreasonableassurance aboutwhether adequate internal �inancial controlsover �inancial reporting
wasestablishedandmaintainedandifsuchcontrolsoperatedeffectivelyinallmaterialrespects.
Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal
�inancial controls systemover �inancial reportingandtheiroperating effectiveness.Ourauditof internal
�inancial controls over �inancial reporting included obtaining an understanding of internal �inancial
controls over �inancial reporting, assessing the risk that a material weakness exists, and testing and
evaluating the design and operating effectiveness of internal control based on the assessed risk. The
proceduresselecteddepend on the auditor’s judgment, including the assessment of the risks ofmaterial
misstatementofthe�inancialstatements,whetherduetofraudorerror.
Webelievethattheauditevidencewehaveobtainedissuf�icientandappropriate toprovideabasisforour
auditopinionontheinternal�inancialcontrolssystemover�inancialreportingoftheCompany.
MeaningofInternalFinancialControlsoverFinancialReporting
Acompany’sinternal�inancialcontrolover�inancialreportingisaprocessdesignedtoprovidereasonable
NEERAJPAPERMARKETINGLTD.
24thAnnualReport2019 73
assurance regarding the reliability of �inancial reporting and the preparation of �inancial statements for
external purposes in accordance with generally accepted accounting principles. A company’s internal
�inancial control over �inancial reporting includes those policies and procedures that (1) pertain to the
maintenance of records that, in reasonable detail, accurately and fairly re�lect the transactions and
dispositionsoftheassetsofthecompany;(2)providereasonableassurancethattransactionsarerecorded
as necessary to permit preparation of �inancial statements in accordance with generally accepted
accounting principles, and that receipts and expenditures of the company are being made only in
accordancewith authorizationsofmanagement anddirectorsofthecompany;and(3)provide reasonable
assuranceregardingpreventionor timelydetectionofunauthorizedacquisition,use,ordispositionof the
company’sassetsthatcouldhaveamaterialeffectonthe�inancialstatements.
LimitationsofInternalFinancialControlsoverFinancial Reporting
Because of the inherent limitations of internal �inancial controls over �inancial reporting, including the
possibilityofcollusionor impropermanagementoverrideofcontrols,materialmisstatementsdueto error
orfraudmayoccurandnotbedetected.Also,projectionsofanyevaluationoftheinternal�inancialcontrols
over�inancial reporting tofutureperiods are subject to the risk that the internal �inancial control over
�inancial reporting may become inadequate because of changes in conditions, or that the degree of
compliancewiththepoliciesorproceduresmaydeteriorate.
Opinion
Inouropinion, tothebestofour information andaccordingtotheexplanations giventous, theCompany
has, inallmaterial respects, an adequate internal �inancial controls system over �inancial reporting and
such internal �inancial controlsover �inancial reportingwereoperating effectively asatMarch31,2019,
basedontheinternalcontrolover�inancialreportingcriteriaestablishedbytheCompanyconsideringthe
essential components of internal control stated in the Guidance Note on Audit of Internal Financial
ControlsOverFinancialReportingissuedbytheInstituteofCharteredAccountantsofIndia.
FORM/SRAJEEVSINGAL&CO.
FirmRegistrationNo.008692C
CharteredAccountants
Place:Delhi
Dated30thMay2019
CASUNILKUMAR
Partner
M.No.408730
Sd/-
NEERAJPAPERMARKETINGLTD.
24thAnnualReport2019 74
ANNEXURE‘B’TOTHEINDEPENDENTAUDITOR’SREPORT
(Referredtoinparagraph2under‘ReportonOtherLegalandRegulatoryRequirements’sectionofour
reporttotheMembersofNeerajPaperMarketingLimitedofevendate)
(i) (a) TheCompanyhasmaintainedproperrecordsshowingfullparticulars,includingquantitative
detailsandsituationof�ixedassets.
(b) The �ixed assets have been physically veri�ied during the year by the management in
accordancewitharegularprogrammeofperiodicalveri�ication inphasedmannerwhich, in
ouropinion,isreasonablehavingregardtothesizeoftheCompanyandthenatureofitsFixed
Assets. The discrepancies, if any, noticed on such physical veri�ication have been properly
dealtwithinthebooksofaccounts.
(c) According to the informationandexplanationsgiven tousand the records examinedbyus
andbasedontheexaminationoftheregisteredsaledeed/transferdeed/conveyancedeed
providedtous,wereportthat,thetitledeeds,comprisingalltheimmovablepropertiesofland
andbuildingswhicharefreehold,areheldinthenameoftheCompanyasatthebalancesheet
date.
(ii) We have been explained by themanagement that the inventory have been physically veri�ied at
reasonableintervalsduringtheyear.Asfaraswecanascertainandaccording toinformationand
explanationsgiventous,thediscrepancies,whenevermaterial,noticedonsuchphysicalveri�ication
ofinventoryascomparedtobookrecordswereproperlydealtwithinthebooksofaccounts.
(iii) TheCompanyhasnotgrantedanyloans,securedorunsecured,tocompanies,�irm,LimitedLiability
Partnerships or other parties covered in the register maintained under section 189 of the Act.
Accordingly,theprovisionsofclause3(iii)(a)to(c)oftheOrderarenotapplicabletotheCompany.
(iv) In our opinion and according to the information and explanations given to us, the Company has
complied with the provisions of sections 185 and 186 of Act in respect of making investments.
However, the Company has not granted any loans or provided any guarantees and securities.
Accordingly,theprovisionofclause3(iv)oftheOrderisnotapplicabletotheCompany.
(v) According to the information and explanations given to us, the Company has not accepted any
depositfromthepublic.Accordingly,theprovisionofclause3(v)oftheOrderisnotapplicableto
theCompany.
(vi) Companyisengagedintradingandmarketingactivitiesandthemaintenanceofcostrecordsisnot
applicable to the company as speci�ied by the Central Government under section 148(1) of the
CompaniesAct,2013.Accordingly,theprovisionofclause3(vi)oftheOrderisnotapplicabletothe
Company.
(vii) Accordingtotheinformationandexplanationsgiventous,inrespectofstatutorydues:
(a) The Company has generally been regular in depositing undisputed statutory dues, including
ProvidentFund,Employees'StateInsurance,Income-tax,SalesTax,ServiceTax,CustomsDuty,
Excise Duty, Value Added Tax, cess and othermaterial statutory dues applicable to it t o the
appropriateauthorities.
(b) There were no undisputed amounts payable in respect of Provident Fund, Employees' State
NEERAJPAPERMARKETINGLTD.
24thAnnualReport2019 75
Insurance,Income-tax,SalesTax,ServiceTax,CustomsDuty,ExciseDuty,ValueAddedTax,cess
andothermaterialstatutoryduesinarrearsasatMarch31,2019foraperiodofmorethansix
monthsfromthedatetheybecamepayable.
(c) Therearenoduesinrespectofincometax,salestax,servicetax,dutyofexcise,dutyofcustom,
orvalueadded taxwhichhavenotbeendepositedonaccountofanydispute exceptasgiven
below:
Nameof
statute
Natureof
dues
Periodto
whichthe
amount
relates
Forumwheredisputeis
pending
Amount
(Rs.)
Amountpaidunder
protest
DelhiValue
AddedTax
Act
2004/Delhi
SalesTaxAct
1975
Sales
Tax/VAT
2012-13 Appellate Tribunal, VAT,
NewDelhi
98919 550000
Sales
Tax/VAT
2013-14 Special Commissioner-III
(OHA)
10306315 3800000
2013-14 Special Commissioner-III
(OHA)
12219538
2013-14 Special Commissioner-III
(OHA)
13624628
2013-14 Special Commissioner-III
(OHA)
7610112
(viii)
Based on our audit procedures and as per the information and explanations given by the
management, we are of the opinion that the company has not defaulted in repayment of loan or
borrowingtoanybanksand�inancialinstitutions.
(ix) TheCompanyhasnotraisedmoneysbywayof initialpublicofferorfurtherpublicoffer(including
debt instruments)or term loans.Accordingly,paragraph3 (ix)of theOrder isnotapplicable to the
Company.
(x) Tothebestofourknowledgeandaccordingtotheinformationandexplanationsgiventous,nofraud
by the Company and no fraud on the Company by its of�icers or employees has been noticed or
reportedduringtheyear.
(xi) Inouropinionandaccordingtotheinformationandexplanationsgiventous,theCompanyhaspaid/
provided managerial remuneration in accordance with the requisite approvals mandated by the
provisionsofsection197readwithScheduleVtotheAct.
(xii) Inouropinionandaccordingtotheinformationandexplanationsgiventous,theCompanyisnota
NidhiCompany.Accordingly,paragraph3(xii)oftheOrderisnotapplicabletotheCompany.
(xiii) Accordingtotheinformationandexplanationsgiventousandbasedonourexaminationoftherecord
oftheCompany,transactionswiththerelatedpartiesareincompliancewithsections177and188of
theActwhereapplicableanddetailsofsuchtransactionshavebeendisclosedinthestandaloneIndAS
�inancialstatementsasrequiredbytheapplicableaccountingstandards.
(xiv) Basedupon the audit procedures performedand the informationandexplanations given tous, the
Companyhasnotmadeanypreferentialallotment orprivateplacementof shares or fullyorpartly
NEERAJPAPERMARKETINGLTD.
24thAnnualReport2019 76
convertibledebentureduringtheyearunderreview.Accordingly,paragraph3(xiv)oftheOrderisnot
applicabletotheCompany.
(xv) According to the information and explanations given to us and based on our examination of the
recordsof theCompany, theCompanyhasnotentered intonon-cash transactionswithdirectorsor
personsconnectedwithhim.Accordingly,paragraph3(xv)oftheOrderisnotapplicable.
(xvi) TheCompanyisnotrequiredtoberegisteredundersection45-IAoftheReserveBankofIndiaAct,
1934.
FORM/SRAJEEVSINGAL&CO.
FirmRegistrationNo.008692C
CharteredAccountants
Place:Delhi
Dated30thMay2019
CASUNILKUMAR
Partner
M.No.408730
Sd/-
NEERAJPAPERMARKETINGLTD.
24thAnnualReport2019 77
NEERAJ PAPER MARKETING LIMITED
218-222, AGGARWAL PRESTIGE MALL, PLOT No.2, ALONG ROAD No.44, PITAMPURA, NEW DELHI-110034
CIN: L74899DL1995PLC066194
(Rs. In Lacs)
As at As at March 31, 2019 March 31, 2018
ASSETS
1. Non-current assets
Property, Plant and Equipment 4 780.88
764.16
Financial Assets
Investments 5 -
25.00
Other non-current assets 6 273.51
203.73
1,054.39
992.89
2. Current assets
Inventories 7 234.25
1,291.38
Financial Assets
Trade receivables 8 6,434.01
8,679.13
Cash and cash equivalents 9 7.23
43.13
Bank balances other than covered above 10 46.16
17.43
Other current assets 12 197.42
397.09
6,919.07
10,428.16
TOTAL ASSETS 7,973.46
11,421.05
EQUITY AND LIABILITIES
EQUITY
Equity Share capital 13 1,100.00
1,100.00
Other Equity 14 1,342.70
1,311.63
2,442.70
2,411.63
LIABILITIES
1. Non- current liabilities
Financial Liabilities
Borrowings 15 756.38 798.86 Provisions 16 33.91 22.86 Deferred tax liabilities (net) 17 64.28 52.79 Other non-current liabilities 18 139.02
141.82
993.59
1,016.33
2. Current Liabilities
Financial Liabilities
Borrowings 19 1,351.16
5,608.21
Trade payables 20 2,888.33
2,038.09
Other Financial liabilities 21 123.00
113.39
Other current liabilities 22 155.67
218.27
Provisions 23 14.56
13.76
Current Tax Liabilities (Net) 11 4.45
1.37
4,537.17
7,993.09
TOTAL EQUITY AND LIABILITIES 7,973.46
11,421.05
Company Information 1
Basis of Preparation 2
Significant Accounting Policies 3
See accompanying notes 1 - 44 forming an integral part of the financial statements
FOR M/S RAJEEV SINGAL & CO. For and on behalf of the Board of Directors
Chartered Accountants
Firm Regn. No. 008692C
(PRAVEEN KUMAR GOEL) (DEEPAK GOEL)
Wholetime Director Wholetime Director
DIN - 00014638 DIN - 00200527
(CA SUNIL KUMAR)
Partner
M.No. 408730
(MANSI) (VIPIN KUMAR GOEL)
Date: 30th May, 2019 Company Secretary Chief Financial Officer
Place: Delhi PAN - DNIPM9327Q PAN - ACSPG3315N
BALANCE SHEET
As at March 31st, 2019
PARTICULARS Note No.
Sd/- Sd/-
Sd/-Sd/-
Sd/-
NEERAJPAPERMARKETINGLTD.
24thAnnualReport2019 78
NEERAJ PAPER MARKETING LIMITED
218-222, AGGARWAL PRESTIGE MALL, PLOT No.2, ALONG ROAD No.44, PITAMPURA, NEW DELHI-110034
CIN: L74899DL1995PLC066194
(Rs. In Lacs)
Year Ended Year EndedMarch 31, 2019 March 31, 2018
I Revenue from operations 24 25,220.46
32,858.26
II Other income 25 13.30
28.70
III Total Income (I + II) 25,233.76
32,886.96
IV Expenses
Cost of material consumed -
-
Purchases of stock in trade 26 23,204.09
32,514.32
Changes in inventories of
-Finished goods -
-
-Work-in-progress -
-
-Stock in trade 27 1,057.13
(1,226.05)
Employee benefits expense 28 165.53
171.36
Finance costs 29 505.01
931.10
Depreciation and amortization expense 4 37.89
32.26
Other expenses 30 135.34
304.63
Total expense (IV) 25,104.99
32,727.62
V Profit/(loss) before exceptional items and tax (I- IV) 128.77
159.34
VI Exceptional Items 31 45.68
316.59
VII Profit/(loss) before tax (V-VI) 83.09
(157.25)
VIII Income Tax Expense: 32
(1) Current tax 37.82 39.94
(2) Deferred Tax 11.49 12.76 IX Profit/(Loss) (V-VI) 33.78 (209.95) X Other Comprehensive Income ('OCI')
-Items that will not be re-classified to Profit and Loss
Remeasurements gains/(loss) of defined benefit plans (4.07)
(11.97) Tax on above (1.36)
(3.96)
-Items that will be re-classified to Profit and Loss
Fair value changes on financial assets through OCI (net of tax) -
-
Other comprehensive income for the year, net of tax (2.71)
(8.01)
XI Total comprehensive income for the year, net of tax (IX+X) 31.07
(217.96)
XII Earnings per equity share 33
(1) Basic 0.31
(1.91)
(2) Diluted 0.31
(1.91)
See accompanying notes 1 - 44 forming an integral part of the financial statements
FOR M/S RAJEEV SINGAL & CO. For and on behalf of the Board of Directors
Chartered Accountants
Firm Regn. No. 008692C
(PRAVEEN KUMAR GOEL) (DEEPAK GOEL)
Wholetime Director Wholetime Director
DIN - 00014638 DIN - 00200527
(CA SUNIL KUMAR)
Partner
M.No. 408730
(MANSI) (VIPIN KUMAR GOEL)
Date: 30th May, 2019 Company Secretary Chief Financial Officer
Place: Delhi PAN - DNIPM9327Q PAN - ACSPG3315N
For the year ended March 31st, 2019
PARTICULARS Note No.
STATEMENT OF PROFIT AND LOSS
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Sd/-Sd/-
NEERAJPAPERMARKETINGLTD.
24thAnnualReport2019 79
NEERAJPAPERMARKETINGLIMITED
218-222,AGGARWALPRESTIGEMALL,PLOTNo.2,ALONGROADNo.44,PITAMPURA,NEWDELHI-110034
CIN:L74899DL1995PLC066194
STATEMENTOFCHANGESINEQUITY
AsatMarch31,2019
A. EquityShareCapital
Amount Amount
(Rs.InLacs) (Rs.InLacs)
OpeningShareCapital 11,000,000 1,100.00 11,000,000 1,100.00
Add:SharesissuuedDuringtheyear - - - -
Total 11,000,000 1,100.00 11,000,000 1,100.00
LessReductioninCapital - - - -
ClosingShareCapital 11,000,000 1,100.00 11,000,000 1,100.00
B. Statementofchangeinequity (Rs.InLacs)
AsAtApril1,2017 928.57 601.37 (0.35) 1,529.59Pro�itfortheyear - (209.95) - (209.95)OtherComprehensiveIncome - - (8.01) (8.01)AsAtMarch31,2018 928.57 391.42 (8.36) 1,311.63 -
AsAtApril1,2018 928.57 391.42 (8.36) 1,311.63
Pro�itfortheyear - 33.78 - 33.78OtherComprehensiveIncome - - (2.71) (2.71)AsAtMarch31,2019 928.57 425.20 (11.07) 1,342.70 -
SecurityPremium RetainedEarnings
Other
Comprehensive
Income
TotalEquity
PARTICULARS
March31,2019 March31,2018
Nos Nos
ReservesandSurplus
Seeaccompanyingnotes1-44forminganintegralpartofthe�inancialstatements
FORM/SRAJEEVSINGAL&CO. ForandonbehalfoftheBoardofDirectors
CharteredAccountants
FirmRegn.No.008692C
(PRAVEENKUMARGOEL) (DEEPAKGOEL)
WholetimeDirector WholetimeDirector
DIN-00014638 DIN-00200527
(CASUNILKUMAR)
Partner
M.No.408730
(MANSI) (VIPINKUMARGOEL)
Date:30thMay,2019 CompanySecretary ChiefFinancialOf�icer
Place:Delhi PAN-DNIPM9327Q PAN-ACSPG3315N
Sd/-
Sd/- Sd/-
Sd/-Sd/-
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24thAnnualReport2019 80
NEERAJPAPERMARKETINGLIMITED
218-222,AGGARWALPRESTIGEMALL,PLOTNo.2,ALONGROADNo.44,PITAMPURA,NEWDELHI-110034
CIN:L74899DL1995PLC066194
STATEMENTOFCASHFLOW
FortheyearendedMarch31,2019
See accompanying notes 1 - 44 forming an integral part of the financial statements -
-
FOR M/S RAJEEV SINGAL & CO. For and on behalf of the Board of Directors
Chartered Accountants
Firm Regn. No. 008692C
(PRAVEEN KUMAR GOEL) (DEEPAK GOEL)
Wholetime Director Wholetime Director
DIN - 00014638 DIN - 00200527
(CA SUNIL KUMAR)
Partner
M.No. 408730
(MANSI) (VIPIN KUMAR GOEL)
Date: 30th May, 2019 Company Secretary Chief Financial Officer
Place: Delhi PAN - DNIPM9327Q PAN - ACSPG3315N
(Rs. In Lacs)
Year Ended Year EndedMarch 31, 2019 March 31, 2018
A. Cash flow from operating activitiesNet Profit before Tax as per Profit & Loss Account 81.74
(161.30)
Adjustments for:
Depreciation 37.89
32.26
Finance costs 505.01
931.10
Other Non Operating Income (13.30)
(28.70)
Operating profit before changes in assets and liabilities 611.34
773.36
Changes in inventories 1,057.13 (1,226.05)
Changes in trade receivables 2,245.12 (65.18)
Changes in current tax assets (net) - 2.54
Changes in other current assets 199.67 440.47
Changes in other non-current assets (69.78) (42.61)
Changes in trade payables 850.24 1,134.05
Changes in other financial liabilities-current 9.61 (15.23)
Changes in other current liabilities (62.60) 88.87
Changes in provisions-current 0.80 12.97
Changes in current tax liabilities (net) 3.08 1.37
Changes in provisions - non current 11.05 5.96
Changes in deferred tax liabilities (net) 11.49 12.76
Changes in other non current liabilities (2.80) 2.67
Cash generated from operations 4,864.35 1,125.95
Net income tax (paid) / refunds (50.67) (56.66)
Net cash flow from / (used in) operating activities (A) 4,813.68 1,069.29
B. Cash flow from investing activities
Purchase of Property,Plant & Equipment (58.90) (210.18) Proceeds from sale of Property,Plant & Equipment 4.29 2.11 Change in investments in bank deposits (28.73) 2.13 Changes in investments 25.00 - Other Non Operating Income 13.30 28.70
Net cash flow from / (used in) investing activities (B) (45.04) (177.24)
C. Cash flow from financing activities
Proceeds from long-term borrowings - 101.35 Repayment of long-term borrowings (42.48) - Finance cost (505.01) (931.10)
Net cash flow from / (used in) financing activities (C) (547.49) (829.75) Net increase/(decrease) in Cash and cash equivalents (A+B+C) 4,221.15 62.30
Cash and cash equivalents at the beginning of the year (5,565.08) (5,627.38) Cash and cash equivalents at the end of the year (refer Note-9) (1,343.93) (5,565.08)
PARTICULARS
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24thAnnualReport2019 81
Note1CompanyOverviewThe company has its Registered Of�ice as well as business place at 218-222, Aggarwal Prestige Mall, Plot NO. 2,Community Centre, along road no. 44, Pitampura, Delhi-110034. The company is engaged in Trading&MarketingBusiness.
These�inancialstatementswereapprovedandadoptedbyBoardofDirectorsoftheCompanyintheirmeetingheldonMay30,2019.
Note2BasisofPreparationofFinancialStatements2.1 StatementofCompliance:TheFinancialStatementshavebeenpreparedinaccordancewithIndianAccountingStandards(IndAS)asprescribedunderSection133oftheCompaniesAct,2013readwithCompanies(IndianAccountingStandards)Rules,2015andCompanies(IndianAccountingStandards)(Amendment)Rules,2016andrelevantprovisionsoftheCompaniesAct,2013.2.2 BasisofPreparation:Accounting policies have been consistently applied except where a newly issued accounting standard is initiallyadoptedorarevisiontoanexistingaccountingstandardrequiresachange intheaccountingpolicyhithertoinuse.The �inancial statements are presented in INR and all values are rounded to the nearest INR Lakhs, except whenotherwiseindicated.2.3 UseofEstimatesThe preparation of the �inancial statements in conformity with Ind AS requires management to make estimates,judgmentsandassumptions.Theseestimates,judgmentsandassumptionsaffecttheapplicationofaccountingpoliciesandthereportedamountsofassetsandliabilities,thedisclosuresofcontingentassetsandliabilitiesatthedateofthe�inancial statements and reported amountsof revenues and expensesduring the period.Applicationof accountingpolicies that require critical accounting estimates involving complex and subjective judgments and the use ofassumptionsinthese�inancialstatementshavebeendisclosedinNote.Accounting estimates could change from period to period. Actual results could differ from those estimates.Appropriatechangesinestimatesaremadeasmanagementbecomesawareofchangesincircumstancessurroundingtheestimates.Changesinestimatesarere�lectedinthe�inancialstatementsintheperiodinwhichchangesaremadeand,ifmaterial,theireffectsaredisclosedinthenotestothe�inancialstatements.Note3Signi�icantAccountingPolicies3.1 Property,PlantandEquipment(PPE)Thesetangibleassetsareheldforuseinproduction,supplyofgoodsorservicesorforadministrativepurposes.Thesearerecognizedandcarriedundercostmodeli.e.costlessaccumulateddepreciationandimpairmentloss,ifany.
· Costincludesfreight,duties,taxesandotherexpensesdirectlyincidentaltoacquisition,bringingtheassettothelocationandinstallationincludingsiterestorationuptothetimewhentheassetisreadyforintendeduse.SuchCostsalsoincludeBorrowingCostiftherecognitioncriteriaaremet.
· When a major inspection/repair occurs, its cost is recognized in the carrying amount of the plant andequipmentasa replacement if the recognitioncriteria are satis�ied.Any remaining carryingamountof thecostofpreviousinspection/repairisderecognized.
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24thAnnualReport2019 82
· DepreciationhasbeenprovidedonstraightlinemethodintermsofexpectedlifespanofassetsasreferredtoinScheduleIIoftheCompaniesAct,2013.
S.No. DescriptionofAssets Usefullife
1. Of�iceBuilding 602. FurnitureandFixtures 103. Vehicles 84. AirConditioner 105. Computer 3
· Components relevant to Property, plant and equipment , where signi�icant, are separately depreciated on
straightlinebasisintermsoftheirlifespanassessedbytechnicalevaluationinitemspeci�iccontext.· DuringsalesofProperty,plantandequipment anypro�it earned/losssustainedtowardsexcess/shortfallof
salevaluevis-a-viscarryingcostofassetsisaccountedforinstatementofpro�it&loss.3.2 ImpairmentThecarryingamountofProperty,plantandequipments,IntangibleassetsandInvestmentpropertyarereviewedateach Balance Sheet date to assess impairment if any, based on internal / external factors. An asset is treated asimpaired,whenthecarryingcostofassetexceedsitsrecoverablevalue,beinghigherofvalueinuseandnetsellingprice.AnimpairmentlossisrecognisedasanexpenseintheStatementofPro�itandLossintheyearinwhichanassetisidenti�iedasimpaired.Theimpairmentlossrecognisedinprioraccountingperiodisreversed,iftherehasbeenanimprovementinrecoverableamount.3.3 InventoryValuationInventoriesarevaluedatthelowerofcostornetrealizablevalue.Costincludespurchaseprice,duties,transport&handingcostsandothercostsdirectlyattributabletotheacquisitionandbringingtheinventoriestotheirpresentlocationandcondition.Thebasisofdeterminationofcostremainsasfollows:
· StockinTrade:Companyisengagedintradingandmarketingbusinessandgenerallynostockismaintainedbythecompany.HoweverinapplicablecasesCostofinventoriesareascertainedon"FIFO"basis.
3.4 FinancialAssets&LiabilitiesAFinancialInstrumentisanycontractthatgivesrisetoa�inancialassetofoneentityanda�inancialliabilityorequityinstrumentofanotherentity. 3.4.1 FinancialAssetsAtinitialrecognition,all�inancialassetsaremeasuredatfairvalue.Such�inancialassetsaresubsequentlyclassi�iedunderfollowingthreecategoriesaccordingtothepurpose forwhichtheyareheld.Theclassi�icationisreviewedattheendofeachreportingperiod.
3.4.1.1 FinancialAssetsatAmortisedCostAt the date of initial recognition, are held to collect contractual cash �lows of principal and interest on principalamountoutstandingonspeci�ieddates.These�inancialassetsareintendedtobehelduntilmaturity.Therefore,theyare subsequently measured at amortised cost by applying the Effective Interest Rate (EIR) method to the grosscarryingamountofthe�inancialasset.TheEIRamortisationisincludedasinterestincomeinthepro�itorloss.Thelossesarisingfromimpairmentarerecognisedinthepro�itorloss. 3.4.1.2 FinancialAssetsatFairvaluethroughOtherComprehensiveIncome
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24thAnnualReport2019 83
At the date of initial recognition, are held to collect contractual cash �lows of principal and interest on principalamountoutstandingonspeci�ieddates,aswellasheldforselling.Therefore,theyaresubsequentlymeasuredateachreportingdateatfairvalue,withallfairvaluemovementsrecognisedinOtherComprehensiveIncome(OCI).Interestincomecalculatedusingtheeffectiveinterestrate(EIR)method,impairmentgainorlossandforeignexchangegainorloss are recognised in the Statement of Pro�it and Loss. On derecognition of the asset, cumulative gain or losspreviouslyrecognisedinOtherComprehensiveIncomeisreclassi�iedfromtheOCItoStatementofPro�itandLoss. 3.4.1.3 FinancialAssetsatFairvaluethroughPro�itorLossAtthedateofinitialrecognition,�inancialassetsareheldfortrading,orwhicharemeasuredneitheratAmortisedCostnoratFairValuethroughOCI.Therefore,theyaresubsequentlymeasuredateachreportingdateatfairvalue,withallfairvaluemovementsrecognisedintheStatementofPro�it andLoss.
· InvestmentinEquitySharesInvestmentsinEquitySecuritiesareinitiallymeasuredatcost.
· TradeReceivables AReceivable is classi�iedasa ‘trade receivable’ if it is in respect to theamountdue fromcustomersonaccountofgoodssoldorservicesrenderedintheordinarycourseofbusiness.Tradereceivablesarerecognisedinitiallyatfairvalue and subsequently measured at amortised cost using the effective interest method, less provision forimpairment.ForsometradereceivablestheCompanymayobtainsecurityintheformofguarantee,securitydepositorletterofcreditwhichcanbecalleduponifthecounterpartyisindefaultunderthetermsoftheagreement.
· CashandCashEquivalentsCash and cash equivalents comprise cashon hand, cash at bank anddemanddepositswith bankswith an originalmaturityofthreemonthsorlesswhicharesubjecttoaninsigni�icantriskofchangeinvalue.
· OtherBankBalancesDepositswithbankswithanoriginalmaturityofmorethanthreemonthsbutsubjectto12monthsareshownunderthishead.
· De-recognitionofFinancialAssetsFinancialAssetisprimarilyderecognizedwhen:
· Therighttoreceivecash�lowsfromassethasexpired,or
· TheCompanyhastransferreditsrighttoreceivecash �lowsfromtheassetorhasassumedanobligationtopay the received cash �lows in full without material delay to a third party under a “ pass-through”arrangement.
3.4.2 FinancialLiabilitiesAll�inancialliabilitiesarerecognizedinitiallyatfairvalueand,inthecaseofloansandborrowingsandpayables,netofdirectlyattributable transactioncosts.TheCompany’s�inancial liabilities includetradeandotherpayables, loansandborrowingsincludingbankoverdrafts,andderivative�inancialinst ruments. 3.4.2.1 FinancialLiabilitiesatFairValuethroughPro�itorLossFinancialliabilitiesat fairvaluethroughpro�itorlossinclude�inancialliabilitiesheldfortrading.TheCompanyhasnot designated any �inancial liabilities upon initial measurement recognition at fair value through pro�it or loss.
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24thAnnualReport2019 84
Financialliabilitiesatfairvaluethroughpro�itorlossareateachreportingdatewithallthechangesrecognizedintheStatementofPro�itandLoss. 3.4.2.2 FinancialLiabilitiesmeasuredatAmortizedCostAfter initialrecognition, interestbearing loansandborrowingsaresubsequentlymeasuredatamortisedcostusingthe effective interest rate method (‘’EIR’’) except for those designated in an effective hedging relationship. Thecarryingvalueofborrowingsthataredesignatedashedgeditemsinfairvaluehedgesthatwouldotherwisebecarriedatamortisedcostareadjustedtorecordchangesinfairvaluesattributabletotherisksthatarehedged ineffectivehedgingrelationship.AmortisedcostiscalculatedbytakingintoaccountanydiscountorpremiumonacquisitionandfeeorcoststhatareanintegralpartoftheEIR.TheEIRamortisationisincludedin�inancecostsintheStatementofPro�itandLoss.
· LoansandBorrowingsAfterinitialrecognition,interest-bearingborrowingsaresubsequentlymeasuredatamortisedcostusingtheeffectiveinterestratemethod.Anydifferencebetweentheproceeds(netoftransactioncosts)andtheredemptionamountisrecognised inpro�itor lossovertheperiodoftheborrowingsusingtheeffective interestmethod.Feespaidon theestablishmentof loan facilitiesare recognisedas transaction costs of the loan to the extent that it is probable thatsomeorallofthefacilitywillbedrawndown.Borrowingsareclassi�iedascurrentliabilitiesunlesstheCompanyhasanunconditionalrighttodefersettlementoftheliabilityforatleasttwelvemonthsafterthereportingperiod.
· TradeandOtherPayablesApayableisclassi�iedas’tradepayable’ifitisinrespectoftheamountdueonaccountofgoodspurchasedorservicesreceivedinthenormalcourseofbusiness.TheseamountsrepresentliabilitiesforgoodsandservicesprovidedtotheCompany prior to the end of �inancial yearwhich are unpaid. Trade and other payables are presented as currentliabilitiesunlesspaymentisnotduewithin12monthsafterthereportingperiod.Theyarerecognisedinitiallyattheirfairvalueandsubsequentlymeasuredatamortisedcostusingtheeffectiveinterestmethod.
· De-recognitionofFinancialLiabilityAFinancialLiabilityisderecognisedwhentheobligationundertheliabilityisdischargedorcancelledorexpires.Thedifferencebetweenthecarryingamountofa�inancial liabilitythathasbeenextinguishedor transferredtoanotherpartyand theconsiderationpaid, includinganynon-cashassets transferredor liabilitiesassumed, is recognised inpro�itorlossasotherincomeor�inancecosts.
· OffsettingofFinancialInstrumentsFinancialAssetsandFinancialLiabilitiesareoffsetand thenetamountisreported inthebalancesheet if thereisacurrentlyenforceablelegalrighttooffsettherecognisedamountsandthereisanintentiontosettleonanetbasis,torealisetheassetsandsettletheliabilitiessimultaneously. 3.5 RevenueRecognitionTheCompanyearnsrevenueprimarilyfromtradingactivities.
EffectiveApril1,2018, theCompanyhasapplied IndAS115 “Revenue fromContractswithCustomers”whichestablishesacomprehensiveframeworktodepicttimingandamountofrevenuetoberecognised.TheCompanyhas adopted Ind AS 115 using cumulative effect method, where any effect arising upon application of thisstandard is recognised as at the date of initial application (i.e. April 1, 2018). The standard is appliedretrospectivelyonlytocontractsthatarenotcompletedasatthedateofinitialapplicationandthecomparativeinformationintheinterimstatementofpro�itandlossisnotrestated–i.e.thecomparativeinformationcontinuesto be reported under previous standards on revenue i.e. Ind AS 18 and Ind AS 11. There was no impact onadoptionofIndAS115tothe�inancialstatementsoftheCompany. Revenue is recognized when the Company satis�ies the performance obligation by transferring the promisedservices to thecustomers.Servicesareconsideredperformedwhen thecustomerobtainscontrol,whereby the
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customergetstheabilitytodirecttheuseofsuchservicesandsubstantiallyobtainsallbenefitsfromtheservices.Whenthere isuncertaintyas tomeasurementorultimatecollectability,revenuerecognition ispostponeduntilsuchuncertaintyisresolved.Inordertodetermine,ifitisactingasprincipalorasanagent,theentityshalldeterminewhetherthenatureofitspromise is a performanceobligation to provide the speci�ied services itself (i.e. the entity is a principal) or toarrange for those services to be provided by the other party (i.e. the entity is an agent) for all its revenuearrangements.
3.6 EmployeeBene�its
· De�inedBene�itPlanTheCompany’sLiabilitiesonaccountofGratuityofemployeesaredeterminedattheendofeach�inancialyearonthebasis of actuarial valuation certi�icates obtained from Registered Actuary in accordance with the measurementprocedureasperIndianAccountingStandard(INDAS)-19.,‘EmployeeBene�its’.Thecostsofprovidingbene�itsundertheseplansarealsodeterminedon thebasisof actuarial valuationateachyear end.Actuarial gainsand losses forde�ined bene�it plans are recognized through OCI in the period in which they occur. Re -measurements are notreclassi�iedtopro�itorlossinsubsequentperiods.TheDe�inedBene�itPlancanbeshorttermorLongtermswhicharede�inedbelow:i) Short-termEmployeeBene�itAllemployees’bene�itspayablewhollywithintwelvemonthsrenderingservicesareclassi�iedasshorttermemployeebene�its. Bene�its such as salaries, wages, short-term compensated absences, performance incentives etc., and theexpectedcostofbonus,ex-gratiaarerecognizedduringtheperiodinwhichtheemployeerendersrelatedservice. ii) Long-termemployeeBene�itsCompensatedabsenceswhicharenotexpectedtooccurwithin12monthsafter theendof theperiod in which theemployee renders the related services are recognized as a liability at the present value of the de�ined bene�itobligationatthebalancesheetdate.3.7 BorrowingCostsBorrowingcostsdirectlyattributabletotheacquisition,constructionorproductionofanassetthatnecessarilytakesasubstantialperiodoftimetogetreadyforitsintendeduseorsalearecapitalisedaspartofthecostoftheasset.Allotherborrowingcostsareexpensedintheperiodinwhichtheyoccur.Borrowingcostsconsistofinterestandothercosts that an entity incurs in connection with the borrowing of funds. Borrowing cost also includes exchangedifferencestotheextentregardedasanadjustmenttotheborrowingcosts.3.8 IncomeTax
· CurrentincometaxCurrent income taxassetsand liabilitiesaremeasuredat theamountexpectedtoberecovered fromorpaid to thetaxation authorities. The tax rates and tax laws used to compute the amount are those that are enacted orsubstantivelyenacted,atthereportingdate.Currentincometaxrelatingtoitemsrecogniseddirectlyinequityisrecognisedinequityandnotinthestatementofpro�it and loss.Management periodically evaluates positions taken in the tax returnswith respect to situations inwhichapplicabletaxregulationsaresubjecttointerpretationandestablishesprovisionswhereappropriate.
· DeferredtaxDeferredtaxisprovidedusingthebalancesheetapproachontemporarydifferencesatthereportingdatebetweenthetax bases of assets and liabilities and their carrying amounts for �inancial reporting purpose at reporting date.
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Deferred income tax assets and liabilities are measured using tax rates and tax laws that have been enacted orsubstantivelyenactedby thebalancesheetdateandareexpectedtoapply to taxable incomeintheyears inwhichthosetemporarydifferencesareexpected toberecoveredorsettled.Theeffectofchanges in tax ratesondeferredincometaxassetsandliabilitiesisrecognizedasincomeorexpenseintheperiod thatincludestheenactmentorthesubstantive enactmentdate.Adeferred income taxasset is recognized to the extent that it is probable that futuretaxablepro�itwillbeavailableagainstwhichthedeductibletemporarydifferencesandtaxlossescanbeutilized.TheCompanyoffsets current taxassetsandcurrent tax liabilities,where ithasa legallyenforceableright tosetoff therecognizedamountsandwhereitintendseithertosettleonanetbasis,ortorealizetheassetandsettletheliability simultaneously.
· MinimumAlternateTaxMinimumAlternateTaxcreditisrecognized,asanassetonlywhenandtotheextentthereisconvincingevidencethattheCompanywillpaynormalincometaxduringthespeci�iedperiod.3.9 EarningsperShare(EPS)Basic earnings per equity share are computed by dividing the net pro�it attributable to the equity holders of thecompanybytheweightedaveragenumberofequitysharesoutstandingduringtheperiod.Diluted earnings per equity share is computed by dividing the net pro�it attributable to the equity holders of thecompanybytheweightedaveragenumberofequitysharesconsideredforderivingbasicearningsperequityshareandalsotheweightedaveragenumberofequitysharesthatcouldhavebeenissueduponconversionofalldilutivepotentialequityshares.Thedilutivepotentialequitysharesareadjustedfortheproceedsreceivablehadtheequityshares been actually issued at fair value (i.e. the averagemarket value of the outstanding equity shares). Dilutivepotentialequitysharesaredeemedconvertedasofthebeginningoftheperiod,unlessissuedatalaterdate.Dilutivepotentialequitysharesaredeterminedindependentlyforeachperiodpresented.The number of equity shares and potentially dilutive equity shares are adjusted retrospectively for all periodspresented forany share splits and bonus shares issues including for changes effectedprior to the approval of the�inancialstatementsbytheBoardofDirectors.3.10 ProvisionsandContingentLiabilities/AssetsProvisions are recognisedwhen theCompanyhas a present obligation (legal or constructive) as a result of a pastevent,itisprobablethatanout�lowofresourcesembodyingeconomicbene�itswillberequiredtosettletheobligationandareliableestimatecanbemadeoftheamountoftheobligation.Theexpenserelatingtoaprovisionispresentedin the statement of pro�it and loss net of any reimbursement. If the effect of the time value ofmoney ismaterial,provisionsarediscountedusingacurrentpre-taxratethatre�lects,whenappropriate,therisksspeci�ictotheliability.Whendiscountingisused,theincreaseintheprovisionduetothepassageoftimeisrecognisedasa�inancecost.Contingent Liability is disclosed after careful evaluation of facts, uncertainties and possibility of reimbursement.Contingentliabilitiesarenotrecognisedbutaredisclosedinnotes.ContingentAssetsarenotrecognisedin�inancialstatementsbutaredisclosed,sincetheformertreatmentmayresultin therecognitionof income thatmayormaynotbe realised.However,when therealisationof income isvirtuallycertain,thentherelatedassetisnotacontingentassetanditsrecognitionisappropriate.3.11 LeasesThedeterminationofwhetheranarrangementis(orcontains)aleaseisbasedonthesubstanceofanarrangementatinceptiondate:whether ful�illmentofthearrangement isdependentontheuseofaspeci�icassetorassetsandthearrangementconveysarighttousetheasset,evenifthatrightisnotexplicitlyspeci�iedinanarrangement.Aleaseisclassi�iedattheinceptiondateasa�inanceleaseoranoperatinglease.Aleasethattransferssubstantiallyallthe risks and rewards incidental to ownership to the Company is classi�ied as a �inance lease. Leases other than�inanceleaseareclassi�iedasoperatinglease.
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Operatingleasepaymentsarerecognizedasanexpenseonastraight-linebasisovertheleasetermandescalationinthe contract, which are structured to compensate expected general in�lationary increase are not straight-lined.ContingentrentsarerecognizedasexpenseintheperiodinStatementofPro�itandLossinwhichtheyareincurred.3.12 CashFlowStatementCash �lows are reported using the indirect method, whereby pro�it for the period is adjusted for the effects oftransactionsofanon-cashnature,anydeferralsoraccrualsofpastorfutureoperatingcashreceiptsorpaymentsanditemofincomeorexpensesassociatedwithinvestingor�inancingcash�lows.Thecash�lowsfromoperating,investingand�inancingactivitiesoftheCompanyaresegregated.3.13 Classi�icationofAssetsandLiabilitiesasCurrentandNonCurrentThe Company presents assets and liabilities in the balance sheet based on current/ non-current classi�ication. Anassetistreatedascurrentwhenitis:· Expectedtoberealisedorintendedtobesoldorconsumedinnormaloperatingcycle · Heldprimarilyforthepurposeoftrading· Expectedtoberealisedwithintwelvemonthsafterthereportingperiod,or· Cash or cash equivalent unless restricted from being exchanged or used to settle a liability for at least twelve
monthsafterthereportingperiod
Allotherassetsareclassi�iedasnon-current.Aliabilityiscurrentwhen:· Itisexpectedtobesettledinnormaloperatingcycle· Itisheldprimarilyforthepurposeoftrading· Itisduetobesettledwithintwelvemonthsafterthereportingperiod,or· Thereisnounconditionalrighttodeferthesettlementoftheliabilityforatleasttwelvemonthsafterthereporting
period
TheCompanyclassi�iesallotherliabilitiesasnoncurrent.
Deferredtaxassetsandliabilitiesareclassi�iedasnon-currentassetsandliabilities.
Theoperatingcycleisthetimebetweentheacquisitionofassetsforprocessingandtheirrealisationincashandcashequivalents.TheCompanyhasidenti�iedtwelvemonthsasitsoperatingcycle.
3.14 FairvalueMeasurementTheCompanymeasures�inancialinstrumentsatfairvalueateachreportingdate.Fairvalueisthepricethatwouldbereceivedtosellanassetorpaidto transfera liability inanorderly transactionbetweenmarketparticipantsat themeasurementdate.Thefairvaluemeasurementisbasedonthepresumptionthatthetransactiontoselltheassetortransfertheliabilitytakesplaceeither:
· Intheprincipalmarketfortheassetorliability. · Intheabsenceofaprincipalmarket,inthemostadvantageousmarketfortheassetorliability.
TheprincipalorthemostadvantageousmarketmustbeaccessiblebytheCompany.
Thefairvalueofanassetoraliabilityismeasureusingtheassumptionsthatmarketparticipantswouldusedwhenpricingtheassetorliability,assumingthatmarketparticipantsactintheireconomicbestinterest.
A fair value measurement of a non �inancial asset takes into account a market participant’s ability to generateeconomicbene�itsbyusingtheassets in itshighestandbestuseorbyselling it toanothermarketparticipant thatwouldusetheassetinitshighestandbestuse.
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TheCompanyusesvaluationtechniquesthatareappropriatein thecircumstancesandforwhichsuf�icientdataareavailable to measure the fair value, maximizing the use of relevant observable inputs and maximizing the use ofunobservableinputs.
All assets and liabilities forwhich fair value ismeasuredanddisclosed in the �inancial statements are categorizedwithin the fairvaluehierarchy,describedas follows, basedon the lowest level inputs that is s igni�icant to the fairvaluemeasurementasawhole:
1. Level1–Quotedprices(unadjusted)inactivemarketsforidenticalassetsorliabilities. 2. Level 2 – Inputs other thanquoted prices includedwithinLevel 1 that areobservable for the asset or liability,eitherdirectly(i.e.,asprices)orindirectly(i.e.,derivedfromprices)3. Level3–Inputsfortheassetsorliabilitiesthatarenotbasedonobservablemarketdata(unobservableinputs)
Forassetsandliabilitiesthatarerecognisedinthe�inancialstatementsonarecurringbasis,theCompanydetermineswhether transfers have occurred between levels in the hierarchy by reassessing categorization at the end of eachreportingperiod.
Forthepurposeoffairvaluedisclosures,theCompanyhasdeterminedclassesofassetsandliabilitiesonthebasisofthenature,characteristicsandrisksoftheassetorliabilityandthelevelofthefairvaluehierarchyasexplainedabove.
3.15 StandardsissuedbutnotyeteffectiveIndAS116Leases:
OnMarch30,2019,MinistryofCorporateAffairshasnoti�iedIndAS116,Leases.IndAS116willreplacetheexistingleases Standard, Ind AS 17 Leases, and related Interpretations. The Standard sets out the principles for therecognition,measurement,presentationanddisclosureofleasesforbothpartiestoacontracti.e.,thelesseeandthelessor.IndAS116introducesasinglelesseeaccountingmodelandrequiresalesseetorecognizeassetsandliabilitiesforallleaseswithatermofmorethantwelvemonths,unlesstheunderlyingassetisoflowvalue.Currently,operatinglease expenses are charged to the statement of Pro�it & Loss. The Standard also contains enhanced disclosurerequirementsforlessees.IndAS116substantiallycarriesforwardthelessoraccountingrequirementsinIndAS17.The effective date for adoption of IndAS 116 is annual periods beginning on or afterApril 1, 2019. The standardpermits twopossiblemethodsof transition: • Full retrospective –Retrospectively to eachprior period presentedapplying Ind AS 8 Accounting Policies, Changes in Accounting Estimates and Errors • Modi�ied retrospective –Retrospectively, with the cumulative effect of initially applying the Standard recognized at the date of initialapplication.Undermodi�iedretrospectiveapproach,thelesseerecordstheleaseliabilityasthepresentvalueoftheremainingleasepayments,discountedattheincrementalborrowingrateandtherightofuseasseteitheras:
• Itscarryingamountas if thestandardhadbeenappliedsince thecommencementdate,butdiscountedat lessee’sincrementalborrowingrateatthedateofinitialapplicationor
•Anamountequaltotheleaseliability,adjustedbytheamountofanyprepaidoraccruedleasepaymentsrelated tothatleaserecognizedunderIndAS17immediatelybeforethedateofinitialapplication.Certainpracticalexpedientsareavailableunderboththemethods.
TheCompany is in theprocessof evaluatingthe impactof transitioning fromold IndAS17 toNewIndAS116onleasesandlikelynottohavematerialimpactonthe�inancialsofthecompany.
IndAS12AppendixC,UncertaintyoverIncomeTaxTreatments:
OnMarch30,2019,MinistryofCorporateAffairshasnoti�ied IndAS12AppendixC,Uncertainty over IncomeTaxTreatmentswhichistobeappliedwhileperformingthedeterminationoftaxablepro�it(orloss),taxbases,unusedtaxlosses,unusedtaxcreditsandtaxrates,whenthereisuncertaintyoverincometaxtreatmentsunderIndAS12.TherewouldnotbeanyeffectonadoptionofIndAS12AppendixCinthe�inancialstatements.
AmendmenttoIndAS12–Incometaxes:
OnMarch30,2019,MinistryofCorporateAffairsissuedamendmentstotheguidanceinIndAS12,‘IncomeTaxes’,inconnectionwithaccountingfordividenddistributiontaxes.Theamendmentclari�iesthatanentityshallrecognisethe
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incometaxconsequencesofdividendsinpro�itorloss,othercomprehensiveincomeorequityaccordingtowheretheentity originally recognised those past transactions or events. Effective date for application of this amendment isannual period beginning on or after April 1, 2019. The Company does not have any impact on account of thisamendment.
AmendmenttoIndAS19–planamendment,curtailmentorsettlement:
OnMarch30,2019,MinistryofCorporateAffairsissuedamendmentstoIndAS19,‘EmployeeBene�its’,inconnectionwithaccountingforplanamendments,curtailmentsandsettlements.Theamendmentsrequireanentity:
•touseupdatedassumptionstodeterminecurrentservicecostandnetinterestfortheremainderoftheperiodafteraplanamendment,curtailmentorsettlement;and
•torecogniseinpro�itorlossaspartofpastservicecost,oragainorlossonsettlement,anyreductioninasurplus,even if that surplus was not previously recognised because of the impact of the asset ceiling. Effective date forapplicationofthisamendmentisannualperiodbeginningonorafterApril1,2019.
TheCompanydoesnothaveanyimpactonaccountofthisamendment.
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Note’4’
Pro
perty,PlantandEquipment
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NOTE`5'
INVESTMENTS-Non-current (Rs.InLacs)
Asat AsatMarch31,2019 March31,2018
Unquoted,Equitysharesfullypaidup
InvestmentsCarriedatCost:
(a) -BrinaGopalTraders(P)Ltd. -
10.00
(NilEquitySharesofRs.10/-eachasat31.03.2019)
(2,00,000EquitySharesofRs.10/-eachasat31.03.2018)
(b) -SwabhimanVyapar(P)Ltd -
15.00
(NilEquitySharesofRs.10/-eachasat31.03.2019)
(5,00,000EquitySharesofRs.10/-eachasat31.03.2018)
TOTAL -
25.00
NOTE`6'
OTHERNONCURRENTASSETS (Rs.InLacs)
Asat AsatMarch31,2019 March31,2018
UnsecuredConsideredGood:
Otheradvances 263.03
191.47
Securitydeposits 10.48
12.26
TOTAL 273.51
203.73
NOTE`7'
INVENTORIES (Rs.InLacs)
Asat AsatMarch31,2019 March31,2018
Stockofgoodstraded 234.25 1,291.38Goodsintransit - -
TOTAL 234.25 1,291.38
NOTE`8'
TRADERECEIVABLES-Current (Rs.InLacs)
Asat AsatMarch31,2019 March31,2018
UnsecuredandConsideredGood 6,434.01
8,679.13
TOTAL 6,434.01
8,679.13
NOTE`9'
CASHANDCASHEQUIVALENTS (Rs.InLacs)
Asat AsatMarch31,2019 March31,2018
CashonHand 5.15
10.36
BalancewithBanks
-InCurrentAccounts 2.08
32.77
ChequesinHand -
-
TOTAL 7.23
43.13
Forthepurposeofstatementofcash�lows,cashandcashequivalentscompriseoffollowing:-
(Rs.InLacs)
Asat AsatMarch31,2019 March31,2018
Cashandcashequivalentsasperbalancesheet 7.23
43.13
BankOverdraft (1,351.16)
(5,608.21)
TOTAL (1,343.93)
(5,565.08)
PARTICULARS
PARTICULARS
PARTICULARS
PARTICULARS
PARTICULARS
PARTICULARS
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NOTE`10'
OTHERBANKBALANCES (Rs.InLacs)
Asat AsatMarch31,2019 March31,2018
BalancewithBanks
-InFixedDepositAccounts 46.16
17.43
TOTAL 46.16
17.43
NOTE`11'
CURRENTTAXASSETS/LIABILITY (Rs.InLacs)
Asat AsatMarch31,2019 March31,2018
CurrentTaxAssets
AdvanceIncomeTax 25.00
24.00
TDS/TCSReceivable 7.01
10.61
32.01
34.61
CurrentTaxLiability
ProvisionforTaxation 36.46
35.98
36.46
35.98
NetCurrentTaxAssets/(Liability) (4.45)
(1.37)
NOTE`12'
OTHERCURRENTASSETS (Rs.InLacs)
Asat AsatMarch31,2019 March31,2018
AdvancetoSuppliers&Others 136.80
192.79
BalanceswithGovt.Departments 12.01
158.29
BalanceswithGovt.Departments(PendingCases) 48.61
46.01
TOTAL 197.42
397.09
PARTICULARS
PARTICULARS
PARTICULARS
NOTE`13'
EQUITYSHARECAPITAL (Rs.InLacs)
Asat AsatMarch31,2019 March31,2018
AuthorisedShareCapital
1,10,00,000EquitySharesofRs10/-each 1,100.00
1,100.00
Issued,SubscribedandPaidupCapital
1,10,00,000EquitySharesofRs.10/-eachfullypaidupincash 1,100.00
1,100.00
TOTAL 1,100.00 1,100.00
13.1 ReconciliationofShares:
Asat AsatMarch31,2019 March31,2018
OpeningShareCapital 11,000,000 11,000,000
Add:SharesissuuedDuringtheyear - -
Total 11,000,000 11,000,000
Less:ReductioninCapital - -
ClosingShareCapital 11,000,000 11,000,000
13.2 ListofShareholdershaving5%ormoreShares
Asat AsatMarch31,2019 March31,2018
1 BindalsPapersMillsLimited 707893 707893
%ShareHolding 6.44% 6.44%
PARTICULARS
NameoftheShareholder
PARTICULARS
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13.3 Rights,Preferences&Restrictionsattachedtoshares
-NoBonusSharehasbeenissuedbythecompanysinceincorporationofthecompany
-ThecompanyhasoneclassofequityshareshavingaparvalueofRs.10/-pershare.Eachshareholderiseligibleforonevoteper
shareheld.
-Intheeventofliquidation,theequityshareholdersareeligibletoreceivetheremainingassetsofthecompanyafterdistribution
ofallpreferentialamounts,inproportiontotheirshareholding.
NOTE`14'
OTHEREQUITY (Rs.InLacs)
Asat AsatMarch31,2019 March31,2018
(a) Securitypremium
OpeningBalance 928.57
928.57
Add:Additionduringtheyear -
-
ClosingBalance(a) 928.57
928.57
(b) Pro�itandLossAccountOpeningBalance 391.42 601.37
Add:Pro�it/LossDuringTheYear 33.78 (209.95)
ClosingBalance(b) 425.20 391.42
(c) OtherComprehensiveIncome
OpeningBalance (8.36) (0.35)
Add:Additionduringtheyear (2.71) (8.01)
ClosingBalance(c) (11.07) (8.36)
TOTAL 1,342.70 1,311.63
PARTICULARS
NOTE`15'
BORROWINGS-Non-current (Rs.InLacs)
Asat AsatMarch31,2019 March31,2018
SECURED(a) VehicleLoans
-FromPrivateBanks 83.07 99.63Less:CurrentMaturitiesofLongTermBorrowing 28.37 30.41shownunderOtherCurrentLiabilities 54.70 69.22
(b) TermLoans-FromFinancialInstitutions 362.62 370.22Less:CurrentMaturitiesofLongTermBorrowing 59.87 47.52shownunderOtherCurrentLiabilities 302.75 322.70
UNSECURED(a) -FromDirectors 13.93
8.08
(b) -FromOthers -
12.39
(c) -FromBodyCorporate 385.00
386.47
398.93
406.94
TOTAL 756.38
798.86
15.1 NATUREOFSECURITYFORTERMLOANSFROMFINANCIALINSTITUTIONS
15.2 NATUREOFSECURITYOFVEHICLETERMLOANS
VehicleTermLoansaresecuredagainstHypothecationofrespectiveVehiclesandpersonalguaranteeofdirectors.
Term Loan from PNB Housing Finance Limited is secured against Security of Of�ice Building of the Company at Unit No.218-222,
Plot No.2, Community Centre, Pitampura, Delhi. Term Loan from Kotak Mahindra Bank Limited is secured against Security of Of�ice
Building of the Company at Unit No.217 Plot No.2, Community Centre, Pitampura Delhi. Term Loan form ICICI Bank and Indiabulls
HousingFinanceLimitedissecuredagainstUnitNo.216andotherOf�icebuildingofthecompany
PARTICULARS
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NOTE`16'PROVISIONS-Non-current (Rs.InLacs)
Asat AsatMarch31,2019 March31,2018
Provisionforemployeebene�its
ProvisionforGratuity 33.91
22.86
TOTAL 33.91
22.86
PARTICULARS
NOTE`17'
DEFERREDTAXLIABILITY (Rs.InLacs)
Asat AsatMarch31,2019 March31,2018
DeferredTaxLiability
Opening 52.79 40.03
Addition/(Deletion) 11.49 12.76
64.28 52.79
DeferredTaxAssets
Opening - -
Addition/(Deletion) - -
- -
NetDeferredTaxAssets/(Liability) (64.28) (52.79)
17.1 Thecomponentsthatgaverisetodeferredtaxliabilitiesandassetsareasfollows:
(Rs.InLacs)
Asat AsatMarch31,2019 March31,2018
Deferredtaxliabilityinrelationto:
Property,plantandequipment&intangibleasset 64.28 52.79Totaldeferredtaxliability 64.28 52.79
Deferredtaxassetsinrelationto:
- -Totaldeferredtaxassets - -
NOTE`18'OTHERNONCURRENTLIABILITIES (Rs.InLacs)
Asat AsatMarch31,2019 March31,2018
Deferredpaymentobligationonunsecuredloan
-FromDirectors 6.07
3.52
-FromOthers -
5.40-FromBodyCorporate 167.71
168.36
TOTAL 173.78
177.28Less:Payableinnext12months 34.76
35.46
transfertocurrentliabilities
TOTAL 139.02
141.82
Deferred tax assets and deferred tax liabilities have been offset wherever the Company has a legally enforceable right to set off
current tax assets against current tax liabilities and where the deferred tax assets and deferred tax liabilities relate to income taxes
leviedbythesametaxationauthority.
PARTICULARS
PARTICULARS
PARTICULARS
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NOTE`19'
BORROWINGS-Current (Rs.InLacs)
Asat AsatMarch31,2019 March31,2018
Secured
WorkingCapitalLoan-RepayableonDemand
-FromBankofMaharasthra 520.81
1,454.27
-FromBankofIndia -
1,788.76
-FromOrientalBankofCommerce 830.35
2,365.18
[SecuredbywayofHypothecationofStocks,Guaranteeof
Directors&Others]
TOTAL 1,351.16
5,608.21
19.1 NATUREOFSECURITYFORCASHCREDITS
a.IndustriallandatVillageBhandura,parganaMuzaffarnagar,inthenameofM/sBindalRollingMillsLimited.
b.IndustriallandatVillageKukada,parganaMuzaffarnagar,inthenameofM/sBindalPulp&Paper(P)Limited.
c.Residential�latbearingNo.W-111,GreaterKailashPart-1NewDelhiinthenameofSmt.MadhulikaGoelW/oSh.NeerajGoel.
e.PledgeofFDRofRs.6.00Lacs.
NOTE`20'
TRADEPAYABLES-Current (Rs.InLacs)
Asat AsatMarch31,2019 March31,2018
Acceptance
SundryCreditorsagainstILC/FLC(NetofMargin) - 1,204.87Otherthanacceptance
(A)totaloutstandingduesofmicroenterprisesandsmallenterprises - -(B)totaloutstandingduesofcreditorsotherthanmicroenterprisesandsmallenterprises 2,888.33 833.22
TOTAL 2,888.33 2,038.09
NOTE`21'
OTHERFINANCIALLIABILITIES-Current (Rs.InLacs)
Asat AsatMarch31,2019 March31,2018
Currentmaturitiesoflongtermdebt 123.00
113.39
TOTAL 123.00
113.39
NOTE`22'
OTHERCURRENTLIABILITIES (Rs.InLacs)
Asat AsatMarch31,2019 March31,2018
AdvancefromCustomers 129.39
63.22Governmentduespayable 13.80
125.91
Otherpayable 12.48
29.14
TOTAL 155.67
218.27
PARTICULARS
PARTICULARS
Working Capital Limit from Bank of Maharashtra, Oriental Bank of Commerce and Bank of India is secured by First charge on the
�loating assets of the company (Present & future) on parri passu basis and personal guarantee of the directors of the company
along with personal guarantee of Sh. Rakesh Kumar & Sh. Neeraj Goel, Smt. Madhulika Goel, relatives of the directors of the
company & corporate guarantee of Bindal Pulp & Papers Private Limited and Bindal Rolling Mills Limited. The working capital
limitisfurthercollaterallysecuredbyEquitableMortgageoffollowingspropertiesonparri–passubasis:
PARTICULARS
PARTICULARS
d. Residential House at Block No. A-36, DLF City-1, Golf course road, Gurgaon, Haryana in the name of Smt. Madhulika Goel W/o Sh.
NeerajGoel.
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NOTE`23'
PROVISIONS-Current (Rs.InLacs)
Asat AsatMarch31,2019 March31,2018
Provisionforemployeebene�its:
-ProvisionforGratuity 12.98
11.74
Others:
ProvisionforAuditFees 1.58
2.02
TOTAL 14.56
13.76
NOTE`24'
REVENUEFROMOPERATION (Rs.InLacs)
YearEnded YearEndedMarch31,2019 March31,2018
Saleofproducts 24,773.25 32,721.64
Saleofservices 447.21 136.62
TOTAL 25,220.46 32,858.26
Saleofproducts
DomesticTurnover 24,773.25 32,721.64
Saleofservices
DomesticTurnover 447.21 136.62
TOTAL 25,220.46 32,858.26
NOTE`25'
OTHERINCOME (Rs.InLacs)
YearEnded YearEndedMarch31,2019 March31,2018
InterestIncome 11.21 24.55CarRentalIncome - 0.27RentReceived 2.09 2.10OtherIncome - 1.78
TOTAL 13.30 28.70
NOTE`26'
COSTOFTRADEDGOODS (Rs.InLacs)
YearEnded YearEndedMarch31,2019 March31,2018
PurchaseofGoodsTraded 23,204.09
32,514.32
TOTAL 23,204.09
32,514.32
NOTE`27'
CHANGEININVENTORIESOFTRADEDGOODS (Rs.InLacs)
YearEnded YearEndedMarch31,2019 March31,2018
OpeningStockofTradedGoods 1,291.38
65.33ClosingStockofTradedGoods 234.25
1,291.38
StockDecreased/(Increased)by 1,057.13
(1,226.05)
PARTICULARS
PARTICULARS
PARTICULARS
PARTICULARS
PARTICULARS
NEERAJPAPERMARKETINGLTD.
24thAnnualReport2019 97
NOTE`28'
EMPLOYEEBENEFITSEXPENSES (Rs.InLacs)
YearEnded YearEndedMarch31,2019 March31,2018
SalariesandWages 144.36
153.98
ContributiontoProvidentFund 3.74
3.11
ContributiontoESI 1.23
1.17
Bonus 5.58
4.98
Gratuity 8.22
5.44
StaffWellfareExpenses 2.40
2.68
TOTAL 165.53
171.36
NOTE`29'
FINANCECOSTS (Rs.InLacs)
YearEnded YearEndedMarch31,2019 March31,2018
InterestonWorkingCapital 400.92
820.68
InterestonTermLoans&OtherCharges 50.88
110.42
InterestonlatepaymentofTDS 53.21
-
TOTAL 505.01
931.10
NOTE`30'
OTHEREXPENSES (Rs.InLacs)
YearEnded YearEndedMarch31,2019 March31,2018
SellingandDistributionExpenses:
AdvertisementExpenses 0.27 0.35
BusinessPromotionExpenses 0.07 15.86
CommissionPaid - -
FreightOutward 32.91 140.46
AdministrativeExpenses:
A.G.Meeting/OtherMeetingExpenses 0.85 0.60AuditExpenses - 0.07Auditor'sRemuneration 1.75 2.50ComputerRunning&MaintenanceExpenses 0.75 0.47Director'sRemuneration 36.00 36.00Donations 0.28
-
Electricity&WaterSupplyExpenses 3.63
3.74
Fees&Subscriptions -
0.32
GSTPenalty 1.05
-
InsuranceExpenses 2.02
1.66LegalandProfessionalFee 17.38
42.86
LossonSaleofCar 2.34
0.43MiscellaneousExpenses 0.46
4.25
Of�iceExpenses 1.99
0.47PettyBalancesWrittenoff (0.25)
0.22
Postage&Telegram 3.11
3.87
Printing&Stationery 0.24
0.45
RatesandTaxes 1.56
1.41
Rebate&Discount 0.90
-
Rent 3.87
9.76
Repair&Of�iceMaintenanceExpenses 14.31
14.32
SalesTaxExpenses 0.49
-
ServiceTaxExpenses -
1.08
Taxpaid(ExcessProvision)P/Years -
0.04
TelephoneExpenses 2.36
4.59
TravellingExpenses 2.16
9.28
TravellingExpenses(Foreign) -
9.24
VehicleRunning&Maintenance&Conveyance 4.84
0.33
PARTICULARS
PARTICULARS
PARTICULARS
TOTAL 135.34 304.63
NEERAJPAPERMARKETINGLTD.
24thAnnualReport2019 98
NOTE`31'
EXCEPTIONALITEMS (Rs.InLacs)
YearEnded YearEndedMarch31,2019 March31,2018
IncomeTaxExpensesagainstSETCOMOrder 7.04
202.62
ServiceTax 38.64
113.97
TOTAL 45.68
316.59
NOTE`32'
INCOMETAX
32.1 AmountrecognisedinStatementofPro�itandLoss
(Rs.InLacs)
YearEnded YearEndedMARCH31,2019 MARCH31,2018
CurrentTax
Currentyear 37.82 39.94
MATcreditentitlement - -
Total 37.82 39.94
DeferredTax
ChangeinDeferredtaxassetsandliabilities 11.49 12.76
Total 11.49 12.76
Incometaxexpensereportedinthestatementofpro�itandloss 49.31 52.70
32.2 Reconciliationofeffectivetaxrate
(Rs.InLacs)
YearEnded YearEndedMARCH31,2019 MARCH31,2018
Pro�itbeforetax 83.09 (157.25)EnactedtaxrateinIndia 33.384% 33.063%
Computedtaxexpense 27.74 -Increase/(reduction)intaxesonaccountof:
Exceptionalitems 19.35 52.68Donation 0.01 -Others 2.21 0.02Incometaxexpenserecordedinthestatementofpro�itandloss 49.31
52.70
NOTE`33'
EARNINGSPERSHARE (Rs.InLacs)
YearEnded YearEndedMarch31,2019 March31,2018
NetPro�itfortheyear 33.78
(209.95)Weightedaveragenumberofequityshares(Nos) 11,000,000
11,000,000
NominalValueperEquityShare(Rs.) 10.00
10.00Basicearningspershare(Rs.) 0.31
(1.91)
Dilutedearningspershare(Rs.) 0.31
(1.91)
Exceptional items contain penalties imposed by different revenue authorities under pending litigation and company has accepted
theorderwithoutanyfurtherdispute.
PARTICULARS
PARTICULARS
PARTICULARS
PARTICULARS
NEERAJPAPERMARKETINGLTD.
24thAnnualReport2019 99
NOTE '34'
CONTINGENT LIABILITIES
Claims against the Company not acknowledged as debts
(Rs. In Lacs)
Year Ended Year Ended
March 31, 2019 March 31, 2018
Sales Tax/Vat 698.70 698.70
ILC/FLC - 100.40
Bank Gaurantee
NOTE '35'
AUDITOR'S REMUNERATION (Rs. In Lacs)
Year Ended Year Ended
March 31, 2019 March 31, 2018
1. Statutory Auditor (i) Statutory audit fee 1.50 2.25
(ii) Tax audit fee 0.25 0.25
TOTAL 1.75 2.50
NOTE '36'
DIRECTOR’S REMUNERATION (Rs. In Lacs)
Year Ended Year EndedMarch 31, 2019 March 31, 2018
Director's Remuneration 36.00 36.00
NOTE '37'
RELATED PARTY TRANSACTION
(a) LIST OF RELATED PARTIES AND RELATIONSHIP
(i) Key management personnel (KMP) & their relatives
Deepak Goel Wholetime Director
Parveen Kumar Goel Wholetime Director
Vipin Kumar Goel CFO
Amit Agarwal Director
Mansi Company Secretary
Pankaj Goel Relative
Ishita Goel Relative
Chirag Goel Relative
Udit Goel Relative
Nutan Goel Relative
Vaishali Mathpal Company Secretary (Resigned)
(ii) Companies in which Director is a Member or Director
V.R. Digital Private Limited
Swabhiman Vyapaar Pvt Ltd
Satyavan Sales Promotion Pvt Ltd
Roshan Lal Ashok Kumar
Kaushalya Devi Enterprises
Coral Minerals Private Limited
PARTICULARS
Apart of it, The company has also granted its corporate guarantee for credit facilities availed by Bindal Merchnadise (Trading unit of
Bindals Papers Mills Limited) from Allahabad Bank, Parliament Street, New Delhi Branch.The company has also granted its guarantee
for credit facilities availed by Satyavan Sales Promotion Private Limited from Bank of Maharashtra, New Delhi Branch. However,
Satyavan Sales Promotion Private Limited has repaid the entire amount of the credit facility to the bank in the month of April, 2019 and
thus, guarantee granted by Neeraj Paper Marketing Limited has been released by the bank.
PARTICULARS
PARTICULARS
NEERAJPAPERMARKETINGLTD.
24thAnnualReport2019 100
Bindal Industries Limited
Brina Gopal Traders Private Limited
Bindal Rolling Mills Limited
Shakumbhari Pulp and Paper Mills Limited
Bindal Pulp and Papers Private Limited
(b) RELATED PARTY TRANSACTION
(Rs. In Lacs)
NATURE OF TRANSACTION Year Ended Year Ended
March 31, 2019 March 31, 2018
Directors Remuneration 18.00 18.00
Amount Payable 0.68 -
Unsecured Loan Received 20.00 -
Unsecured Loan Paid 11.60 3.40
Amount Payable 20.00 11.60
Parveen Kumar Goel Directors Remuneration 18.00 18.00 Amount Payable 0.78 9.69
Vipin Kumar Goel Salary 6.25 6.25
Amount Payable 1.50 1.50
Vaishali Mathpal Salary 2.03 3.60
Amount Payable - 0.30
Mansi Salary 1.49 3.60
Amount Payable 0.28 -
Pankaj Goel Salary 6.60 6.60 Amount Payable 0.50 8.24
Unsecured Loan Received 3.41 3.22
Unsecured Loan Paid 3.41 3.22
Interest paid on U/S Loan - -
Amount Payable - -
Unsecured Loan Received 0.82 0.45
Unsecured Loan Paid 0.82 5.82
Interest paid on U/S Loan - 0.29
Amount Payable - -
Unsecured Loan Received - -
Unsecured Loan Paid 4.18 0.05
Interest paid on U/S Loan 0.41 0.28
Amount Payable - 3.77
Unsecured Loan Received 5.46 -
Unsecured Loan Paid 12.46 6.36
Interest paid on U/S Loan 0.33 0.90
Amount Payable - 6.66
Purchases 3.75 7.14
Sales 109.48 271.73
Amount Receivable - 220.52
Amount Payable 2.31 -
Roshan Lal Ashok Kumar Transfer of Investments in shares 25.00 -
Nutan Goel
Shakumbhari Pulp and Paper Mills Limited
Udit Goel
NAME OF THE RELATED PARTY
Deepak Goel
Ishita Goel
Chirag Goel
NEERAJPAPERMARKETINGLTD.
24thAnnualReport2019 101
NOTE '38'
Financial Risk Management Objectives and Policies38.1 Financial risk factors
38.1.1 Market Risk
(a) Foreign Currency Risk and sensitivity
(b) Commodity price risk and sensitivity
38.1.2 Credit risk
The ageing analysis of trade receivables as of the reporting date is as follows:
(Rs. In Lacs)
Trade receivables as at March 31, 2019 302.69 6,131.32 6,434.01
Trade receivables as at March 31, 2018 470.26 8,208.87 8,679.13
38.1.3 Liquidity risk
The table below provides details regarding the contractual maturities of significant financial liabilities as of March 31, 2019:
(Rs. In Lacs)
Borrowings - Current 1,351.16 1,351.16 - -
Borrowings - Non-Current 844.62 88.24 756.38 -
Trade payables 2,888.33 2,888.33 - -
Other financial liabilities - Current 123.00 123.00 - -
PARTICULARS 1-5 year Above 5 year
The Company’s operational activities expose to various financial risks i.e. market risk, credit risk and risk of liquidity. The Company
realizes that risks are inherent and integral aspect of any business. The primary focus is to foresee the unpredictability of financial
markets and seek to minimize potential adverse effects on its financial performance. The primary market risk to the Company is foreign
exchange risk & interest rate risk. The Company uses derivative financial instruments to reduce foreign exchange risk exposures.
The senior professionals working to manage the financial risks and the appropriate financial risk governance frame work for the
Company are accountable to the Board Audit Committee. This process provides assurance to the Company’s senior management that
the Company’s financial risk-taking activities are governed by appropriate policies and procedures and that financial risks are
identified, measured and managed in accordance with Company’s policies and company’s risk appetite.
The Company’s exposure to financial risks is to a variety of financial risks, including the effect of changes in foreign currency
exchange rates, if any. Foreign currency risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate
because of changes in foreign exchange rates. The Indian Rupee is the Company’s functional currency. As a consequence, the
Company’s results are presented in Indian Rupee and exposures are managed against Indian Rupee accordingly. The Company has
foreign currency exposure on account of import of traded goods.
The Company is exposed to the movement in price of key materials in domestic and international markets. The Company has in place
policies to manage exposure to fluctuations in the prices of the key materials used in operations. The Company manages fluctuations in
material price through hedging in the form of advance procurement when the prices are perceived to be low and also enters into advance
buying contracts as strategic sourcing initiative in order to keep material and prices under check cost of material hedged to the extent
Credit risk is the risk that counterparty will not meet its obligations under a financial instrument or customer contract, leading to a
financial loss. The Company is exposed to credit risk from its operating activities (primarily for trade receivables) and from its
financing activities, including deposits with banks and financial institutions.
PARTICULARS Others Total
Liquidity risk is the risk that the Company may not be able to meet its present and future cash and collateral obligations without
incurring unacceptable losses. The Company’s objective is to, at all times maintain optimum levels of liquidity to meet its cash and
collateral requirements. The Company principal sources of liquidity are cash and cash equivalents and the cash flow generated from
operations. The Company closely monitors its liquidity position and deploys a robust cash management system.
Upto 1 yearCarrying
Amount
More than
6months
NEERAJPAPERMARKETINGLTD.
24thAnnualReport2019 102
The table below provides details regarding the contractual maturities of significant financial liabilities as of March 31, 2018:
(Rs. In Lacs)
Borrowings - Current 5,608.21 5,608.21 - -
Borrowings - Non-Current 876.79 77.93 798.86 -
Trade payables 2,038.09 2,038.09 - -
Other financial liabilities - Current 113.39 113.39 - -
38.2 Competition and Price risk
38.3 Capital Risk Management
(Rs. In Lacs)
As at As at
March 31, 2019 March 31, 2018
Borrowings 2,195.78 6,485.00
Less: Cash and cash equivalents 7.23 43.13
Less: Other bank balances 46.16 17.43
Net debt 2,142.39 6,424.44
Equity 2,442.70 2,411.63
Capital and Net debt 4,585.09 8,836.07
Gearing Ratio 47% 73%
NOTE '39'
(Rs. In Lacs)
As at As at
March 31, 2019 March 31, 2018
(i) - -
(ii) - -
(iii) - -
(iv) the amount of interest accrued and remaining unpaid at the end of each accounting year; and - -
(v) - -
The above information regarding Micro, Small and Medium Enterprises has been determined to the extent such parties have been
identified on the basis of information available with the company.
the amount of further interest remaining due and payable even in the succeeding years, until
such date when the interest dues as above are actually paid to the small enterprise, for the
purpose of disallowance as a deductible expenditure under section 23.
PARTICULARS 1-5 year Above 5 year
The Company faces competition from local competitors. Nevertheless, it believes that it has competitive advantage in terms of high
quality products and by continuously upgrading its expertise and range of products to meet the needs of its customers.
The Company’s policy is to maintain an adequate capital base so as to maintain creditor and market confidence and to sustain future
development. Capital includes issued capital, share premium and all other equity reserves attributable to equity holders. In order to
strengthen the capital base, the company may use appropriate means to enhance or reduce capital, as the case may be.
PARTICULARS
Disclosure required under the Micro, Small and Medium Enterprises Development Act, 2006 (“MSMED Act, 2006”) as at March 31,
2019 and March 31, 2018 is as follows:
PARTICULARS
the principal amount and the interest due thereon remaining unpaid to any supplier as at the
end of each accounting year;
the amount of interest paid by the buyer in terms of section 16, along with the amounts of the
payment made to the supplier beyond the appointed day during each accounting year;
the amount of interest due and payable for the period of delay in making payment (which have
been paid but beyond the appointed day during the year) but without adding the interest
specified under this Act;
Upto 1 yearCarrying
Amount
NEERAJPAPERMARKETINGLTD.
24thAnnualReport2019 103
NOTE '40'
FAIR VALUES
(Rs. In Lacs)
March 31, 2019 March 31, 2018 March 31, 2019 March 31, 2018
Financial Assets
- At amortised cost
Investments - 25.00 - 25.00
Trade receivables 6,434.01 8,679.13 6,434.01 8,679.13
Cash and cash equivalents 7.23 43.13 7.23 43.13
Bank balances other than covered above 46.16 17.43 46.16 17.43
Financial Liabilities
- At amortised cost
Borrowings (non-current) 756.38 798.86 756.38 798.86
Borrowings (current) 1,351.16 5,608.21 1,351.16 5,608.21
Trade payables 2,888.33 2,038.09 2,888.33 2,038.09
Other Financial liabilities 123.00 113.39 123.00 113.39
The following methods / assumptions were used to estimate the fair values:
(i)
(ii)
There are no significant unobservable inputs used in the fair value measurement.
NOTE '41'
EMPLOYEE BENEFITS
The Group has recognised the following amounts in the consolidated statement of profit and loss:
41.1 Defined contribution plan (Rs. In Lacs)
Year Ended Year Ended
March 31, 2019 March 31, 2018
Employer’s contribution to Provident Fund 3.74 3.11
3.74 3.11
41.2 Defined benefit plan
41.2.1 Gratuity
(i) The assumptions used to determine the benefit obligation are as follows:-
As at As at
March 31, 2019 March 31, 2018
Discount rate (per annum) 7.70% 7.50%
Salary growth rate (per annum) 7.50% 7.50%
Expected rate of return on plan assets (per annum) 0.00% 0.00%
PARTICULARS
The carrying value of cash and cash equivalent, other bank balances, trade receivables, short term borrowings, other financial liabilities
and trade payables approximate their fair value mainly due to the short-term maturities of these instruments.
The fair value of non current borrowings is estimated by discounting future cash flows using rates applicable to instruments with
similar terms, currency, credit risk and remaining maturities. The fair values of non current borrowings is assessed by the management
to be same as their carrying value and is not expected to be significantly different if estimated by discounting future cash flows using
rates currently available for debt on similar terms, credit risk and remaining maturities.
PARTICULARS
Gratuity liability is defined benefit obligation and is provided for on the basis of an actuarial valuation on projected unit credit method
made at the end of each reporting period. The plan is not funded by the Group. Such liability is included in salaries, wages and bonus.
Set out below is the comparison by class of the carrying amounts and fair value of the Company’s financial instruments that are
recognised in the financial statements.
PARTICULARSCarrying Amount Fair Value
NEERAJPAPERMARKETINGLTD.
24thAnnualReport2019 104
(ii) Reconciliation of opening and closing balances of defined benefit obligation:(Rs. In Lacs)
As at As at
March 31, 2019 March 31, 2018
Present Value of Obligation at the beginning 34.60 17.19
Current Service Cost 5.55 4.15
Interest Cost 2.67 1.29
Re-measurement (or Actuarial) (gain)l o/ss arising from:
change in demographic assumptions - -
change in financial assumptions (0.90) 0.22
experience variance (i.e. Actual experience vs assumptions) 4.97 11.75
Benefits Paid - -
Past Service Cost - -
Changes in Foreign Currency Exchange Rates - -
Loss / (Gains) on Curtailments - -
Settlement Cost - -
Acquistion Adjustment - -
Present Value of Obligation as at the end 46.89 34.60
(iii) Amount charged to the statement of profit and loss:
(Rs. In Lacs)
Year Ended Year Ended
March 31, 2019 March 31, 2018
Service cost 5.55 4.15
Interest cost 2.67 1.29
8.22 5.44
(iv) Amount recognised in Other Comprehensive Income :
(Rs. In Lacs)
As at As at March 31, 2019 March 31, 2018
Re-measurement (or Actuarial) (gain) / loss arising from:
change in demographic assumptions - -
change in financial assumptions (0.90) 0.22
experience variance (i.e. Actual experience vs assumptions) 4.97 11.75
Return on plan assets, excluding amount recognized in net interest expense
Re-measurement arising because of change in effect of asset ceiling - -
Components of defined benefit costs recognized in other comprehensive income(gain)/loss 4.07 11.97
(v) Bifurcation of PBO at the end of the year(Rs. In Lacs)
As at As at
March 31, 2019 March 31, 2018
Current liability 12.98 11.74
Non-current liability 33.91 22.86
(vi) Expected Cashflows(Undiscounted)(Rs. In Lacs)
As at As at
March 31, 2019 March 31, 2018
Year 1 12.98 11.74
Year 2 1.19 0.39
Year 3 5.32 0.46
Year 4 5.96 2.98
Year 5 5.00 6.72
Year 6+ 8.47 46.44
PARTICULARS
PARTICULARS
PARTICULARS
PARTICULARS
PARTICULARS
NEERAJPAPERMARKETINGLTD.
24thAnnualReport2019 105
NOTE '42'
NOTE '43'
All amounts stated in the financial statement are in Lakhs except otherwise stated.
NOTE '44'
Amount of previous year have been regrouped or rearranged wherever required to confirm to the current year presentation.
See accompanying notes 1 - 44 forming an integral part of the financial statements
FOR M/S RAJEEV SINGAL & CO. For and on behalf of the Board of Directors
Chartered Accountants
Firm Regn. No. 008692C
(PRAVEEN KUMAR GOEL) (DEEPAK GOEL)
Wholetime Director Wholetime Director
DIN - 00014638 DIN - 00200527
(CA SUNIL KUMAR)
Partner
M.No. 408730
(MANSI) (VIPIN KUMAR GOEL)
Date: 30th May, 2019 Company Secretary Chief Financial Officer
Place: Delhi PAN - DNIPM9327Q PAN - ACSPG3315N
In the opinion of the Board of Directors, Current Assets, Loans and Advances have value on realisation in the ordinary course of the
business at least equal to the amount at which they have been stated in the Balance Sheet as at 31st March, 2019.
Sd/-
Sd/-
Sd/-
Sd/-Sd/-
NEERAJPAPERMARKETINGLTD.
24thAnnualReport2019 106
L74899DL1995PLC066194
218–222,AgarwalPrestigeMall,PlotNo.2,Communutycenter,AlongRoadNo.44,
Pitampura,NewDelhi-110034
FormNo.MGT-11Proxyform
[Pursuanttosection105(6)oftheCompaniesAct,2013andrule19(3)oftheCompanies(ManagementandAdministration)Rules,2014]
Nameofthemember/s
Registeredaddress E-mailId FolioNo/ClientId DPID
I/We,beingthemember/sof_______________No.ofEquitySharesoftheabovenamedCompany,hereby
Name
Address
E-mailId
Signature
Orfailinghim
Name
Address
E-mailId
Signature
Orfailinghim
Name
Address
E-mailId
Signature
NEERAJPAPERMARKETINGLTD.
24thAnnualReport2019 107
asmy/ourproxytoattendandvote(onapoll)forme/usandonmy/ourbehalfatthe24thAnnualGeneralMeetingof
the Company, to be held on the Monday, 30th September, 2019 at Bipin Chandra Pal Memorial Bhavan, A-81,
ChittaranjanPark,NewDelhi-110019at11:00a.m.andatanyadjournmentthereofinrespectofsuchresolutionsas
areindicatedbelow:
ResNo.
Resolution FOR* AGAINST*
1. Adoption of the Audited Balance Sheet and the Pro�it & Loss AccounttogetherwiththeReportsofDirectors&Auditorsthereonforthe�inancialyearended31stMarch,2019.
2. Reappointment of Mr. Amit Agarwal (DIN 01336763), who retires byrotationatthismeetingandbeingeligible,offerhimselfforreappointment.
3. AppointmentofMs.NehaAgarwalasaNon-ExecutiveIndependentDirectoroftheCompany
4. Appointment of Ms. Pooja Bhardwaj as a Non-Executive IndependentDirectoroftheCompany
5. Re-appointment of Mr. Ankur Sangal as a Non-Executive IndependentDirectoroftheCompany
6. Re-appointment of Mr. Deepak Goel (DIN 00200527) as Whole TimeDirectorofthecompany
7. Re-appointmentofMr.PraveenKumarGoel(DIN00014638)asWholeTimeDirectorofthecompany
Signedthis………………dayof………2019
Af�ixRevenueStamp
SignatureofShareholder:
SignatureofProxyholder(s) :
*Notes:
1. Pleaseputa ‘X’ intheBoxintheappropriatecolumnagainsttherespectiveresolutions.Ifyouleavethe ‘For’or ‘Against’columnblankagainstanyorall theresolutions,yourProxywillbeentitled tovoteinthemannerashe/shethinksappropriate.
2. A Proxy need not be aMember of the Company. Pursuant to the provisions of Section 105 of theCompaniesAct,2013,apersoncanactasProxyonbehalfofnotmorethan�iftyMembersandholdingin aggregate notmore than ten percent of the total Share Capital of the Company carrying votingrights.Membersholdingmore than tenpercent of the total ShareCapital of the Company carryingvotingrightsmayappointasinglepersonasProxy,whoshallnotactasProxyforanyotherMember.
3. ThisformofProxy,tobeeffective,shouldbedepositedattheRegisteredOf�iceoftheCompanyat218–222,AggarwalPrestigeMall,PlotNo.2,CommunityCenter,AlongRoadNo.44,Pitampura,NewDelhi–110034notlaterthanFORTY-EIGHTHOURSbeforethecommencementoftheaforesaidmeeting.
NEERAJPAPERMARKETINGLTD.
24thAnnualReport2019 108
(CIN:L74899DL1995PLC066194)Regd.Of�ice:218–222,AggarwalPrestigeMall,PlotNo.2,CommunityCenter,
AlongRoadNo.44,Pitampura,NewDelhi–110034Website:www.neerajpaper.com;Tel.:+911147527700,Fax-+911147527777
ATTENDANCESLIP
Please�illAttendanceSlipandhanditoverattheentranceofthemeetinghall
1. Name(s)ofMember(s)includingjointholders,ifany(inBlockLetter(s)
2. RegisteredAddressoftheSole/FirstnamedMember 3. RegisteredFolioNo./*DPIDNo.andClientIDNo.
(*ApplicabletoMembersholdingsharesindematerializedform)
4. NumberofSharesheld
I/Weherebyrecordmy/ourpresenceatthe24THAnnualGeneralMeetingoftheCompany,tobeheldontheMonday,
30th September, 2019 at 11:00 a.m. at Bipin Chandra Pal Memorial Bhavan, A-81, Chittaranjan Park, New Delhi-
110019.
________________________
SignatureofMember/Proxy
NEERAJPAPERMARKETINGLTD.
24thAnnualReport2019 109
thRouteM
apforVen
ueof24AGM.
NEERAJPAPERMARKETINGLTD.
24thAnnualReport2019 1
If undelivered please return to :NEERAJ PAPER MARKETING LIMITED218- 222, Aggarwal Prestige MallPlot No. 2, Community CenterAlong Road No. 44, PitampuraNew Delhi - 110034