A. CORPORATE INFORMATION: Rama Pulp and Papers Limited is a public company domiciled in India and incorporated under the provisions of the Company’s Act. The Company’s principal business is manufacturing of papers & chemicals.

a) Notes on accounts. First time adoption of Ind-AS

These financial statements, for the year ended 31 March 2018, have been prepared in accordance with Ind AS, for the purposes of transition to Ind AS, the company has followed the guidance prescribed in Ind AS 101- First time adoption of Indian Accounting Standards, with April 01, 2017 as the transition date and IGAAP as the previous GAAP.

Accordingly, the Company has prepared financial statements which comply with Ind AS applicable for periods ending on 31 March 2018, together with the comparative period data as at and for the year ended 31 March 2017, as described in the summary of significant accounting policies. In preparing these financial statements, the Company’s opening balance sheet was prepared as at 1 April 2016. This note explains the principal adjustments made by the Company in restating its Indian GAAP financial statements, including the balance sheet as at 1 April 2016 and the financial statements as at and for the year ended 31 March 2017.

b There is no significant reconciliation items between cash flow prepared under Previous GAAP and prepared under Ind AS.

Disclosures as required by Indian accounting standard (Ind AS) 101 first time adoption of Indian Accounting Standards Exemption and exceptions availed

Below mentioned are the applicable Ind AS 101 optional exemptions and mandatory exceptions applied in the transition from previous GAAP to Ind AS.

(c) Ind AS Optional Exemptions:

Ind AS 101 allow first-time adopters certain exemptions from the retrospective application of certain requirements under Ind AS. The company has applied the following exemptions:

i) The company has elected to measure an item of Property plant and Equipments and intangible assets at the date of transition to Ind AS as at its fair value and use that fair value as deemed cost at that date

ii) Appendix C to Ind AS 17 requires an entity to assess whether a contract or arrangement contains a lease. In accordance with Ind AS 17, this assessment should be carried out at the inception of the contract or arrangement. However, the company has done the assessment of lease in contracts based on conditions in prevailing as at the date of transition.

iii) The company has elected to apply previous GAAP carrying amount of its investment in subsidiaries, associates and joint ventures as deemed cost as on the date of transition to Ind AS.

iv) Ind AS 101 permits an entity to designate particular equity investment ( Other than equity investment in subsidiaries, joint ventures and associates ) as at fair value through other Comprehensive Income (FVOCI) based on facts and circumstances as the date of transition to Ind AS ( rather than at initial recognition). Other equity investment are classified at Fair Value through Profit & Loss (FVTPL). The Company has availed this exemption to designate certain equity investment as FVOCI on the date of transition.

v) The company has continued the policy adopted for accounting for exchange differences arising from translation of long-term foreign currency monetary items recognised in the financial statements for the period ending immediately before the beginning of the first Ind AS financial reporting period as per the previous GAAP

(d) Ind AS mandatory Exceptions:

The following mandatory exceptions have been applied in accordance with Ind AS 101 in preparing the financial statements.

i) Estimates

The estimates at April 01, 2016 and March 31, 2017 are consistent with those made for the same dates in accordance with Indian GAAP (after adjustments to reflect any differences if any, in accounting policies) apart from the items where application of Indian GAAP did not require estimation. The estimates used by the Company to present these amounts in accordance with Ind AS reflect conditions as at the transition date and as of March 31, 2017.

ii) De-recognition of financial assets and financial liabilities

The Company has elected to apply the de-recognition requirements for financial assets and financial liabilities in Ind AS 109 prospectively for transitions occurring on or after the date of transition to Ind AS.

iii) Classification and measurement of financial assets

The Company has classified the financial assets in accordance with Ind AS 109 on the basis of facts and circumstances that exist at the date of transition to Ind AS.

Notes to the reconciliation of equity as at April 01, 2016 and March 31, 2017 and total comprehensive income for the year ended i) Fair Value as deemed cost - Property Plant and Equipment (PPE)

The Company has opted the option of fair value as deemed cost for the Property Plant and Equipment as on the date of transition to Ind AS. This has resulted in increase of Rs. 2988.49 Lakhs as at 01.04.2016 in the value of the Property Plant and Equipment, reversal of earlier Revaluation reserve outstanding of Rs. 419.18 lakhs as at 01.04.2016 with corresponding increase in retained earnings of Rs. 3407.67 Lakhs as at 01.04.2016 and increase in deferred tax liability of Rs. 1120.14 Lakh as at 01.04.2016.

Fair value adjustments led to additional depreciation of Rs. 88.23 Lakh during the year ended March 31, 2017.

As the Company has opted the option of fair value as deemed cost for the Property Plant and Equipment as on the date of transition to Ind AS, hence the carrying value of revaluation reserve of Rs. 419.18 Lakhs has been adjusted against retained earnings on the date of transition. Subsequently during 2016-17, depreciation charged to revaluation reserve under previous GAAP has been reversed and depreciation as per Ind AS has been accounted for.

ii) As per the provisions of Ind AS 105, any non- current assets are to be classified as assets held for sale, if the sale of such assets is highly probable within a period of 12 months from the date of its classification.

(e) Investments (Non - Current & Current)

i) For investment in Quoted Instrument, company has elected to fair value through OCI.(FVTOCI)

(f) Financial instruments

(i) Derivative financial instruments

Under Indian GAAP, derivative contracts are restated at each balance sheet date to the extent of any reduction in value is recognized in Statement of Profit and Loss. A gain on valuation is only recognized by the Company if it represents the subsequent reversal of an earlier loss. Also under IGAAP premium on forward contract is amortized over the contract period and value was calculated excluding the premium.

Under Ind AS, both reductions and increases to the fair values of derivative contracts are recognized in profit & loss. Premium is not separately accounted and amortized.

(ii) Financial assets and financial liabilities measured at amortized cost

Under the previous GAAP, security deposits (that are refundable in cash on completion of the lease term) are recorded at their transaction value. Under Ind AS 109-Financial Instruments, security deposits are required to be valued at fair value and difference between cost and fair value is to be amortized over the period of security as rental expenses and consequently interest income is to be booked at Effective Interest method in Profit and Loss Account

(iii) Cost of borrowing

Borrowing designated and carried at amortized cost are accounted on EIR method. The upfront fee or cost of borrowing incurred is deferred and accounted on EIR basis. Borrowings are shown as net of unamortized amount of upfront fee incurred.

(g) Proposed Dividend

Under Indian GAAP, proposed dividends are recognized as liability in the period to which they relate irrespective of the approval by shareholders. Under Ind AS a proposed dividend is recognized as liability in the period in which it is declared (on approval of shareholders in a general meeting) or paid.

(h) Deferred Tax

i) Indian GAAP requires deferred tax accounting using the income statement approach, which focuses on differences between taxable profits and accounting profits for the period. Ind AS 12 requires entities to account for deferred taxes using the balance sheet approach, which focuses on temporary differences between the carrying amount of an asset or liability in the balance sheet and its tax base. The application of Ind AS 12 approach has resulted in recognition of deferred tax on new temporary differences, which was not required under Indian GAAP.

ii) In addition, the various transitional adjustments lead to different temporary differences resulting in recognition of deferred tax. Such deferred tax asset has been recognized in retained earnings.

(i) Excise Duty-

Paragraph 8 of Ind AS 18, Revenue states that ‘Revenue includes only the gross inflows of economic benefits received and receivable by the entity on its own account. Amounts collected on behalf of third parties such as sales taxes, goods and services taxes and value added taxes are not having any economic benefits which flow to the entity and do not result in increases in equity. Therefore, Excise Duty has been excluded from the Gross Sales and shown separately.

(j) Depreciation on Property, Plant and Equipment

Company has reversed depreciation charged on revaluation of PPE as per previous GAAP and Depreciation on Property, Plant and Equipment has been calculated on the fair value for the F.Y. 2016-17 and depreciation as per Ind AS has been accounted

(k) Previous year’s figures have been regrouped / reclassified wherever necessary to correspond with the current year’s classification / disclosure.