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Notes to Accounts of Bajaj Corp Ltd.

Mar 31, 2017

1. There is no change in the share capital during the current and preceding year.

2. Terms/ rights attached to equity shares:

The Company has one class of equity shares having par value of Rs. 1 per share. Each holder of equity shares is entitled to one vote per share. The Company declares and pays dividends in Indian rupees. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting.

In the event of liquidation of the Company, the holders of equity shares will be entitled to receive the remaining assets of the Company, after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders.

3. Out of the total equity shares of 1,475 lacs, 986.25 lacs shares are held by Bajaj Resources Limited, the holding Company along with its subsidiaries (KNB Enterprises LLP and SKB Roop Commercials LLP) as per the holding pattern given below.

4. Details of shareholders holding more than 5% shares of the Company as yearend are given below:

5. Leases

Operating Lease Commitment - Company as Lessee

The Company''s significant leasing arrangements are in respect of operating leases for premises used for business. These lease arrangements are non-cancellable and for the period up to three years. Other leasing arrangements are cancellable and for the period of 11 month to three year, and are renewable by mutual consent on mutually agreeable terms.

6. Benefits to Employees

The following table sets out the disclosure under Ind AS-19 on ''Employee Benefits:

7. Defined Contribution Plan

Amount of Rs. 411.64 lacs (FY 2015-16 : Rs. 274.47 lacs) is recognized as an expense and included in "Employee Benefits Expense" (refer note 24) in the statement of Profit and Loss.

8.Defined Benefit Plan

The Company has defined benefit gratuity plan (funded with LIC) which is governed by the Payment of Gratuity Act, 1972. Under the act, employee who has completed five years of service is entitled to gratuity benefit. Liability for employee benefits has been determined by an independent actuary, appointed for the purpose, in conformity with the principles set out in the Ind AS-19, the details of which are as hereunder:

9. The cost of the defined benefit gratuity plan and the present value of the gratuity obligation are determined using actuarial valuations. An actuarial valuation involves making various assumptions that may differ from actual developments in the future. These include the determination of the discount rate, future salary increases and mortality rates. Due to the complexities involved in the valuation and its long-term nature, a defined benefit obligation is highly sensitive to changes in these assumptions. All assumptions are reviewed at each reporting date.

10. The parameter most subject to change is the discount rate. In determining the appropriate discount rate, the management considers the prevailing market yields of Indian Government Securities as at the Balance Sheet date for the estimated term of the obligation.

11. The mortality rate is based on publicly available mortality tables. Those mortality tables tend to change only at interval in response to demographic changes. The estimates of future salary increases, considered in actuarial valuation, take account of the inflation, seniority, promotion and other relevant factors.

12. Financial Instruments

13. Capital Management

For the purpose of the Company''s capital management, capital includes issued equity capital, share premium and all other equity reserves attributable to the equity holders of the Company. The primary objective of the Company''s capital management is to maximize the shareholder value.

The Company manages its capital structure and makes adjustments in light of changes in economic conditions and the requirements of the financial covenants. To maintain or adjust the capital structure, the Company may adjust the dividend payment to shareholders, return capital to shareholders or issue new shares. The Company does not have any long term debts hence there is no capital gearing ratio. Surplus fund has been invested into risk free highly liquid financial instruments.

14. Financial Risk Management Objectives

The Company''s activities expose it to a variety of financial risks: market risk, credit risk and liquidity risk. The Company''s primary focus is to foresee the unpredictability of the financial markets and seek to minimize the potential adverse effects on its financial performance.

15. Market Risk

Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk comprises three types of risk: interest rate risk, currency risk and other price risk, such commodity price risk. Financial instruments affected by market risk includes trade receivables, deposits and current investments.

16.Interest Rate Risk

Interest rate risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The Company does not have any long term debt obligation hence not affected by interest rates fluctuations. The Company has invested its surplus funds in fixed income securities. The mark to market valuation of its portfolio is impact by fluctuation of the interest rates. Portfolio values will change by approximately 5% for every 1% change in interest rates.

17. Foreign Currency Risk

Foreign currency risk is the risk that the fair value of future cash flows of an exposure will fluctuate because of changes in exchange rates. The Company has international business and some part of its sales are in foreign currencies which exposes to changes in foreign exchange rates. Fluctuating rupee can impact the realization of its receivables. The maximum export sales are done on advance payment basis and outstanding export receivable are very insignificant. Hence foreign currency risk has insignificant impact on the Company.

18. Commodity Price Risk

The Company is affected by the price volatility of its key raw materials. Its operating activities requires a continuous supply of key material for manufacturing of hair oil and other cosmetic products. The Company''s procurement department continuously monitor the fluctuation in price and take necessary action to minimize its price risk exposure.

19. Credit Risk

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 trade receivables) and from its treasury operation. The Company majorly sells its goods on advance payment basis and hence not subject to credit risk for its receivables. The Company has invested in high grade corporate bonds which have a strong track record hence the credit risk component of its investment portfolio is neutralized.

20. Liquidity Risk

As of March 31, 2017, the Company has working capital of Rs. 32,994.52 lacs (current assets of Rs. 42,029.78 lacs including cash and cash equivalents of Rs. 973.71 lacs and current investments of Rs. 33,854.3 lacs). The Company has outstanding bank borrowings of Rs. 1,500 lacs as export credit which will be repaid within 6 months from export realizations. Accordingly, no liquidity risk is perceived.

21. Fair value Measurement

The management assessed that fair value of loans, cash and cash equivalents, trade receivables, trade payables and other current liabilities approximate to their carrying amounts largely due to the short-term maturities of these instruments.

The fair value of the financial assets and liabilities is included at the amount at which the instrument could be exchanged in a current transaction between willing parties, other than in a forced or liquidation sale. The following methods and assumptions were used to estimate the fair values.

22. The fair value of unquoted instruments are evaluated by the Company based on parameters such as interest rates and its investments ratting.

23. The fair values of the quoted instruments are based on price quotations at the reporting date.

The Company uses the following hierarchy for determining and disclosing the fair value of financial instruments by valuation technique.

Level 1: quoted (unadjusted) prices in active markets for identical assets or liabilities.

Level 2: other techniques for which all inputs which have a significant effect on the recorded fair value are observable, either directly or indirectly.

Level 3: techniques which use inputs which have a significant effect on the recorded fair value that are not based on observable market data.

The following table provides an analysis of financial instruments that are measured subsequent to initial recognition at fair value, grouped into Level 1 to Level 3 as described below:

24. First time Adoption Reconciliations

The Company has prepared the opening balance sheet as per Ind AS as of April 1, 2015 (the transition date) by recognizing all assets and liabilities whose recognition is required by Ind AS, not recognizing items of assets or liabilities which are not permitted by Ind AS, by reclassifying items from previous GAAP to Ind AS as required under Ind AS, and applying Ind AS in measurement of recognized assets and liabilities. However, this principle is subject to the certain exception and certain optional exemptions availed by the Company as detailed below.

Deemed Cost of Property, Plant and Equipment and Intangible Assets

The Company has elected to continue with the carrying value of all its property, plant and equipments recognized as of April 1, 2015 (transition date) measured as the previous GAAP and used that carrying value as deemed cost as of the transition date.

25. Previous GAAP figures have been regrouped/rearranged wherever necessary to make them comparable in line with Ind AS.

26. Effect of Ind AS adoption is given here under:

A Under previous GAAP, current investments were measured at lower of cost or fair value. Under Ind AS, these financial assets have been classified as FVTPL on the date of transition. The fair value changes are recognized in profit or loss. On transition to Ind AS, these financial assets have been measured at their fair values which is higher than cost as per previous GAAP, resulting in an increase in carrying amount by Rs. 32.67 lacs as at March 31, 2016 and by Rs. 22.34 lacs as at April 1, 2015. The corresponding deferred tax have also been recognized as at March 31, 2016 (Rs. 6.97 lacs) and as at April 1, 2015 (Rs.4.77 lacs) and also for the year ended March 31, 2016 (Rs. 2.20 lacs). The net effect of these changes is an increase in total equity as at March 31, 2016 of Rs. 25.70 lacs (Rs. 17.57 lacs as at April 1, 2015), increase in profit before tax of Rs. 10.33 lacs and in total profit for the year ended March 31, 2016 of Rs. 8.13 lacs.

27. The Company has recognized revenue at the fair value of consideration received or receivable. Any sales incentive and/or schemes in any form, including cash discount given to customers is considered as reduction in selling price and accounted as reduction from revenue. As per previous practice such incentive and/or schemes were accounted in expenses. Such incentive and/or schemes amounts to Rs. 7,290.92 lacs in the FY 2015-16.

28. Under previous GAAP, the Company has not presented other comprehensive income (OCI) separately. Hence, it has reconciled previous GAAP profit or loss to profit or profit or loss as per Ind AS. Further, Indian GAAp profit or loss is reconciled to total comprehensive income as per Ind AS.

29. The transition from previous GAAP to Ind AS has not had a material impact on the statement of cash flows.

30. Initial Public Offer (IPO)

The Company came up with an IPO in August 2010 and listed its securities on NSE & BSE on August 18, 2010. The Company issued 45 lacs fully paid up equity shares of face value of Rs. 5 per share each at a premium of Rs. 655 per share thereby raising a total fund of Rs. 29,700 Lacs.

31. Based on information available with Company, there are no supplier registered as micro, small or medium enterprises under "The Micro, Small and Medium Enterprises Development Act, 2006" as at March 31, 2017, March 31, 2016 and April 1, 2015 and hence disclosure, if any, relating to amounts unpaid as at the yearend together with interest paid / payable as required under the said Act have not been given.


Mar 31, 2016

1 CORPORATE INFORMATION:

Bajaj Corp Limited (the Company) is a public company domiciled in India and incorporated under the provisions of the Companies Act, 1956. Its shares are listed on two stock exchanges in India. The Company is engaged in the business of hair oils and other cosmetics products. The Company has presence in both domestic and international markets.

2. Segment Reporting

As the company''s business activity falls within a single segment viz. "Cosmetics, Toileteries & Other Personal Care Products" & the sales substantially being in the domestic market, the disclosure requirements of the Accounting Standard (AS) 17 " Segment Reporting" as as notified under section 133 of the Companies Act 2013, read together with rule 7 of the Companies (Accounts) Rules, 2014 are not applicable. However it does not have any impact on the true and fair view of the state of affairs in case of Balance Sheet and Statement of Profit and Loss.

3. Earnings per Share (EPS) computed in accordance with Accounting Standard 20 " Earning per Share" as notified under section 133 of the Companies Act 2013, read together with rule 7 of the Companies (Accounts) Rules, 2014

4. Based on information available with Company, there are no supplier registered as micro, small or medium enterprises under "The Micro, Small and Medium Enterprises Development Act, 2006" as at March 31, 2016 and March 31, 2015 and hence disclosure, if any, relating to amounts unpaid as at the year end together with interest paid / payable as required under the said Act have not been given.

5. Previous year''s figures have been regrouped/rearranged wherever necessary.


Mar 31, 2015

A.1 CORPORATE INFORMATION:

Bajaj Corp Limited (the Company) is a public company domiciled in India and incorporated under the provisions of the Companies Act, 1956. Its shares are listed on two stock exchanges in India. The Company is engaged in the business of hair oils and other cosmetics products. The Company has presence in both domestic and international markets.

2. Segment Reporting

As the Company''s business activity falls within a single segment viz. "Cosmetics, Toileteries & Other Personal Care Products" & the sales substantially being in the domestic market, the disclosure requirements of the Accounting Standard (AS) 17 "Segment Reporting" as as notified under Section 133 of the Companies Act, 2013, read together with paragraph 7 of the Companies (Accounts) Rules, 2014 are not applicable. However it does not have any impact on the true and fair view of the state of affairs in case of Balance Sheet and Statement of Profit and Loss.

3. Earnings per Share (EPS) computed in accordance with Accounting Standard 20 " Earning per Share" as notified under Section 133 of the Companies Act 2013, read together with paragraph 7 of the Companies (Accounts) Rules, 2014

4. As per Accounting Standard 18 (AS-18) ''Related Party Disclosures'', as notified under Section 133 of the Companies Act, 2013, read together with paragraph 7 of the Companies (Accounts) Rules, 2014, the disclosures of transactions with the related parties as defined in AS - 18 are given below :

(i) List of related parties and relationships:

Name of the Related Party Relationship

1. Bajaj Resources Ltd. Holding company

2. Mr Kushagra Bajaj Key Management Personnel

3. Mr Sumit Malhotra Key Management Personnel

4. Mr Jimmy Anklesaria Key Management Personnel (till September 30, 2014)

5. Mr Apoorv Bajaj Key Management Personnel

6. Mrs Vasavadataa Bajaj Key Management Personnel

7. Uptown Properties & Leasing Pvt. Ltd. Subsidiary company

8. Bajaj Bangladesh Ltd. Subsidiary company

9. Bajaj Corp International (FZE) Subsidiary company

5. KNB Enterprises LLP Enterprises over which KMP having significant influence

6. SKB Roop Commercial LLP Enterprises over which KMP having significant influence

7. Kamalnayan Jamnalal Bajaj Foundation Enterprises over which KMP having significant influence

8. "Based on information available with Company, there are no supplier registered as micro, small or medium enterprises under "The Micro, Small and Medium Enterprises Development Act, 2006" as at March 31,2015 and March 31,2014 and hence disclosure, if any, relating to amounts unpaid as at the year end together with interest paid / payable as required under the said Act have not been given.

9. Previous year''s figures have been regrouped/rearranged wherever necessary.


Mar 31, 2014

A1. CORPORATE INFORMATION:

1. Bajaj Corp Limited (the Company) is a public company domiciled in India and incorporated under the provisions of the Companies Act, 1956. Its shares are listed on two stock exchanges in India. The Company is engaged in the business of hair oils and other cosmetics products. The Company has presence in both domestic and international markets.

1. Segment Reporting

As the company''s business activity falls within a single segment viz. ''Cosmetics and toiletries'' and the sales substantially being in the domestic market, the disclosure requirements of the Accounting Standard (AS) 17 "Segment Reporting" as prescribed by the Companies (Accounting Standard) Rules 2006 are not applicable. However it does not have any impact on the true and fair view of the state of affairs in case of Balance Sheet and Statement of Profit and Loss.

2. Based on information available with Company, there are no supplier registered as micro, small or medium enterprises under "The Micro, Small and Medium Enterprises Development Act, 2006" as at March 31, 2014 and March 31, 2013 and hence disclosure, if any, relating to amounts unpaid as at the year end together with interest paid / payable as required under the said Act have not been given.

3. Previous year''s figures have been regrouped/rearranged wherever necessary.


Mar 31, 2012

(i) The Company on May 06, 2011 had split its equity shares from Rs 5/- each to equity shares of Rs 1/- each. Consequent to the same the issued, subscribed and paid up capital of the Company changed to 1475 Lacs equity shares of Rs 1/- each from 295 Lacs equity shares of Rs 5/- each.

(ii) Out of the total equity shares of 1475 lacs, 1250 lacs shares are hold by M/s Bajaj Resources Ltd., the holding Company.

1. Segment Reporting

As the Company's business activity falls within a single segment viz. 'Cosmetics and toiletries' and the sales substantially being in the domestic market, the disclosure requirements of the Accounting Standard (AS) 17 "Segment Reporting" as prescribed by the Companies (Accounting Standard) Rules 2006 are not applicable. However it does not have any impact on the true and fair view of the state of affairs in case of Balance Sheet and Profit and Loss Account.

2. Trade creditors include dues to Small Industrial Undertaking. There are no Small Scale Industrial Undertaking to whom an amount of Rs One Lac or more was payable and outstanding for more than 30 days.

3. Previous year's figures have been regrouped/rearranged wherever necessary.


Mar 31, 2011

I. Contingent Liabilities

Disputed liabilities and claims against the company including claims raised by fiscal authorities (e.g. Sales Tax, Income Tax, etc.), pending in appeal/court for which no reliable estimate can be made of the amount of the obligation or which are remotely poised for crystallization are not provided for in accounts but disclosed in notes to accounts.

However, present obligation as a result of past event with possibility of outflow of resources, when reliably estimable is recognized in accounts. There is no contingent liability against the company.

II. Retirement Benefit

(a) Gratuity: The Company has taken Employee Group Gratuity-Cum-Life Assurance Policy of L.I.C. of India for covering accruing liability and the premium paid/payable on such policy is charged to Profit & Loss Account.

(b) Superannuation: Contribution to Superannuation fund is being made to LIC as per scheme of the Company.

(c) Provident Fund: Employees own and Employers Contribution are paid to the Government Provident Fund Authority.

(d) Employee Pension Scheme: Contribution to Employees Pension Scheme, 1995 is made to the Government Provident Fund Authority.

III. Foreign Currency Transaction

Transactions in foreign currency are recorded at exchange rate prevailing on the date of the transaction. Exchange rate differences resulting from foreign exchange transactions settled during the period, are recognized in the Profit and Loss Account.

IV. Income Tax And Deferred Taxation

The liability of company on account of Income Tax is estimated considering the provisions of the Income Tax Act, 1961. Deferred tax is recognised, subject to the consideration of prudence, on timing differences being the difference between taxable income and accounting income that originate in one year and capable of reversal in one or more subsequent year.

V. Segment Reporting

As the companys business activity falls within a single segment viz. Cosmetics and toiletries and the sales substantially being in the domestic market, the disclosure requirements of the Accounting Standard (AS) 17 "Segment Reporting" as prescribed by the Companies (Accounting Standard) Rules, 2006 are not applicable. However it does not have any impact on the true and fair view of the state of affairs in case of Balance Sheet and Profit and Loss Account.

VI. Initial Public Offer (IPO) & Change In Share Capital

Company came up with its IPO in August 2010 and listed its securities on NSE & BSE on August 18, 2010. Company issued 45 lacs fully paid up equity shares of face value of Rs. 5/- each at a premium of Rs. 655/- thereby raising a total fund of Rs. 29,700 lacs.

After IPO the total issued, subscribed and paid up capital changed to 295 lacs equity shares of Rs. 5/- each from 250 lacs equity shares of Rs. 5/- each

VII. As per Accounting Standard 18 (AS-18) Related Party Disclosures, prescribed by the Companies (Accounting Standard) Rules, 2006, the disclosures of transactions with the related parties as defned in AS-18 are given below:

(i) List of related parties and relationships:

Name of the Related Party Relationship

1. Bajaj Consumer Care Ltd. Holding company

2. Mr Kushagra Bajaj Key Management Personnel

3. Mr Roshan Fateh Lal Hinger Key Management Personnel

4. Mr Sumit Malhotra Key Management Personnel

5. Mr Apoorv Bajaj Key Management Personnel

6. Bajaj Infrastructure Development Company Ltd. Associates

7. Bajaj Hindusthan Ltd. Associates

VIII. Trade creditors include dues to Small Industrial Undertaking. There are no Small Scale Industrial Undertaking to whom an amount of Rs. One Lac or more was payable and outstanding for more than 30 days.

IX. Previous years figures have been regrouped/rearranged wherever necessary.


Mar 31, 2010

A. SEGMENT REPORTING

As the companys business activity falls within a single segment viz. Cosmetics and toiletries and the sales substantially being in the domestic market, the disclosure requirements of the Accounting Standard (AS) 17 " Segment Reporting" as prescribed by the Companies (Accounting Standard) Rules 2006 are not applicable. However it does not have any impact on the true and fair view of the state of affairs in case of Balance Sheet and Profit and Loss Account.

B. CHANGE IN SHARE CAPITAL

1. The Company on November 03, 2009 had split its equity shares from Rs. 10/- each to equity shares of Re. 1/- each and had issued bonus shares in the ratio of 1:1. Consequent to the same the issued, subscribed and paid up capital of the company changed to 10 Crore equity shares of Re 1/- each.

2. On January 22, 2010 the Company consolidated the face value of equity shares from Re 1/- each to equity shares of Rs. 21- each. Consequent to the same the issued, subscribed and paid up capital of the company changed to 5 Crore equity shares of Rs. 21- each.

3. On February 22, 2010, all equity shares of face value of Rs. 21- each were consolidated into equity shares of Rs. 5/- each thereby decreasing the total number of issued, subscribed and paid up equity shares from 5 Crore equity shares to 2 Crore equity shares of Rs 5/- each. Further, on the allotment of the Bonus Shares in the ratio of 1:4. the total issued, subscribed and paid up capital changed to 2.50 Crores equity shares of Rs. 5/- each.

C. As per Accounting Standard 18 (AS-18) Related Party Disclosures, prescribed by the Companies(Accounting Standard) Rules, 2006 , the disclosures of transactions with the related parties as defined in AS-18 are given below :

(i) List of related parties and relationships:

Name of the Related Party Relationship

1. Bajaj Consumer Care Ltd. Holding company

2. Mr Kushagra N Bajaj Key Management Personnel

3. Mr Roshan F Hinger Key Management Personnel

4. Mr Divyaroop Bhatnagar Key Management Personnel (upto 30.04.09)

5. Mr Sumit Malhotra Key Management Personnel

6. Mr Apoorv Bajaj Key Management Personnel (w.e.f 05.11.09)

D. Trade creditors include dues to Small Industrial Undertaking. There are no Small Scale Industrial Undertaking to whom an amount of Rs. One Lac or more was payable and outstanding for more than 30 days.

E. Previous years figures have been regrouped/rearranged wherever necessary.


Mar 31, 2009

A As per Accounting Standard 18 (AS-18) Related Party Disclosures, issued by ICAI, the disclosures of transactions with the related parties as defined in AS-18 are given below:

(i) List of related parties and relationships:

Name of the Related Party Relationship

1. Bajaj Sevashram Pvt Ltd. Holding company (Upto Dec 31,2008)

2. Bajaj Consumer Care Ltd. Holding company

3. Mr Kushagra N Bajaj Key Management Personnel

4. Mr Roshan F Hinger Key Management Personnel

5. Mr Divyaroop Bhatnagar Key Management Personnel

6. MrSumitMalhotra Key Management Personnel

B. Trade creditors include dues to Small Industrial Undertaking. There are no Small Scale Industrial Undertaking to whom an amount of Rs. One Lac or more was payable and outstanding for more than 30 days.

C. Previous years figures have been regrouped/rearranged wherever necessary.

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