Notes to Accounts of Bajaj Steel Industries Ltd.

Mar 31, 2021

Term /Rights attached to Equity Shares

"The company has only one class of equity shares having a par value of '' 5/- 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 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. "

Securities Premium

Security Premium reserve is used to record the premium on issue of shares. The reserve is utilised in accordance with the provisions of the Companies Act, 2013.

General Reserve

The General reserve is used from time to time for transfer of profits from surplus in statement of Profit and Loss for appropriation purposes. Capital Reserve

This reserve represents the subsidy from Government, amount received upon reissue of forfeited shares and credit on forfeiture of share warrants.

Equity Investment Reserve

This reserve represents the cumulative gains and losses arising on the revaluationof equity instruments measured at fair value through other comprehensive income, net off amounts reclassified to retained earnings when those assets have been disposed of f

Secured by first charge on entire current assets (Present and future) of Master Batch unit of Superpack division of the Company, equitable mortgage on the building , structures and machineries situated at Company’s premises at Sausar and charge on Plot Nos B12, B12/1, B/13, B13/1, B14, B14/1 at MIDC Industrial Estate, Hingna, Nagpur held in the name of a related Company and corporate guarantee of the said related Company and also by personal guarantee of a Director and C.E.O of Superpack Division of the Company.

Loan-II

Secured by way of extention of second charge on entire current assets (Present and future) of Master Batch unit of Superpack division of the Company, extention of second charge on all existing colleteral security by way of mortgage of all the building,structures and machineries situated at Company’s premises at Sausar and charge on Plot Nos B12, B12/1, B/13, B13/1, B14, B14/1 at MIDC Industrial Estate, Hingna, Nagpur held in the name of a related Company.

b) AXIS Bank Limited

Secured by first charge on entire current assets of Steel Division of the Company, present & Future, collateral security by way of extension of exclusive second charge on the entire moveable and immoveable fixed assets, present and future, situated at plot No- G-108, Butibori, MIDC,Nagpur and assets acquired out of term loan-1 installed at C-108,G-6 & G-7 Hingna Nagpur and exclusive second charge on the fixed asset acquired out of term loan-2 and by personal guarantee of the Managing and Executive Director of the r.omnan\/

On the basis of physical verification of assets, as specified in Indian Accounting Standard - 36 and cash generation capacity of those assets, in the management perception, there is no impairment of such assets as appearing in the balance sheet as on 31.03.2021.

Certain Balances under Advance from Customers, Trade Payables, Capital Advances, Trade Receivables, Advance from Customers and Advances Recoverable in cash or in kind or value to be received are subject to Confirmation.

Management estimations and assumptions

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

b) The fair valueof 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:

(i) The fair values of the quoted shares and unquoted mutual funds are based on NAVs at the reporting date.

Level 1: Quoted Prices in active markets for identical assets or liabilities

Level2 : Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices).

Level 3: Inputs for the assets or liabilities that are not based on observable market data (unobservable inputs).

The company''s policy is to recognize transfers into and the transfers out of fair value hierarchy levels as at the end of the reporting period. There are no transfers between level 1 and level 2 during the end of the reported periods.

27.3 Financial Risk Management

The Company’s principal financial liabilities comprise loans and borrowings, trade and other payables. The main purpose of these financial liabilities is to finance the Company’s operations. The Company’s principal financial assets include loans, trade and other receivables, and cash and cash equivalents that derive directly from its operations.

The Company’s activities expose it to various financial risks: market risk, credit risk and liquidity risk. The company tries to foresee the unpredictable nature of financial markets and seek to minimise potential adverse impact its financial performance. The senior management of the company oversees the management of these risks. The Audit Committee has additional oversight in the area of financial risks and controls. It is the Company’s policy that no trading in derivatives for speculative purposes may be undertaken.

28 CAPITAL MANAGEMENT

The following are the objectives of Capital management policy of the company:

(i) Safeguard its ability to continue as a going concern, so that it can continue to provide returns for shareholders and benefits for other stakeholders, and

(ii) Maintain an optimal capital structure to reduce the cost of capital

As a part of capital management strategy, the company may adjust the amount of dividends paid to shareholders, issue new shares, raise debt capital or sell assets to reduce debt. The company monitors capital basis gearing ratio which is calculated by dividing the total borrowings by total equity. The company’s strategy is to maintain gearing ratio as possible as lower. In order to achieve this overall objective, the company ensures to meet its financial covenants attached to the interest bearing loans and borrowings. There have neverbeen any breaches in financial covenants of any interest bearing loans and borrowings in the past and also in the current period.

29 RELATED PARTY TRANSACTIONS

Related parties and transactions with them as specified in the Indian Accounting Standard-24 on "Related Party Disclosures" issued by the ICAI has been identified and given below;

1. Enterprises where Control Exists: Bajaj Coneagle LLC (Wholly Owned Foreign Subsidiary)

Bajaj Steel Industries (U) Limited (Wholly Owned Foreign Subsidiary)

2. Other Related parties with whom the Company had transactions:

(a) Key Management personnel and there relatives:-Sri Rohit Bajaj (Chairman cum Managing Director), Sri Sunil Bajaj (Executive Director), Sri Vinod Kumar Bajaj (Director), Sri Mahendra Kumar Sharma ( Whole time director and CEO of the Company),

Sri Ashish Bajaj (CEO of Superpack Division), Sri Manish Sharma (Chief Financial Officer), Sri Divyanshu Vyas (Company Secretary).

Relatives :- Sri Hargovind Bajaj, Smt Devika Bajaj, Sri Lav Bajaj,

(b) Enterprises over which Key Management personnel and their relatives are able to exercise Significant Influence-Associated Biscuit Company Limited, Bajaj Chemoplast (I) Limited, Bajaj Trade Development Limited, Bajaj Exports Private Limited,

Rohit Polytex Limited, Prosperous Finance Services Limited, Ampee Textiles Private Limited, Bajaj Global Limited, Vidarbha Tradelinks Pvt. Limited, Glycosic Merchants Private Limited, Xerxes Traders Pvt. Ltd., Gangalaxmi Agrotech Limited, Gangalaxmi Industries Ltd,

Luk Technical Services Pvt Limited ,Luk Plastcon Limited, Luk Infrastructure Private Limited, Luk Bedrocks Private Limited, Nagpur Infotech Pvt.Ltd, Bajaj Polymin Ltd., Bajaj Polyblends Pvt. Ltd , Bajaj Superpack (I) Ltd, Bajaj Gintech Pvt. Ltd., Bajaj Reinforcement LLP, Liberson Agencies Pvt. Ltd., Sidhi Vinimay Pvt. Limited, Bajaj Plast Pvt. Ltd., and Bajaj Polymers.

32 Inventories of raw materials and Semi-Finished include obsolete and slow moving stock, cost wherofwas Rs.576.99 Lacs (P.Y-389.05 lacs), being carried at estimated net realisable value of Rs. 57.70 Lacs (P.Y-Rs. 77.81 lacs). The profit for the year is lower by Rs.519.29 Lacs (P.Y. Rs.311.24 lacs) due to this.

33 In absence of adequate information relating to the suppliers under the Micro, Small and Medium Enterprises Development Act, 2006, the Company is unable to identify such suppliers, hence the Information required under the said Act, cannot be ascertained.

34 The outbreak of Corona Virus Disease (COVID-19) has severely impacted and triggered significant disruptions to businesses worldwide, leading to an economic slowdown. Significant disruptions primarily include interruptions in production, supply chain disruptions, unavailability of personnel, closure of offices/facilities, decline in demand, liquidity and working capital issues, reduced movement of inventory, decline in selling prices, etc. The company has to the best of its abilities considered impact of COVID-19 while preparing these financial statements and accordingly reviewed the following possible effects:

i) there is no material uncertainty on the ability of the company to continue as a going concern,

ii) there is no material adjustment required to be done in the carrying amounts of the assets and liabilities as on March 31, 2021,

iii) there is no material event/circumstance happened due to COVID-19 as on the date of approval of these financial statements that require specific adjustments/disclosures in these financial statements. However, the company shall continue to closely monitor any material changes arising of future economic conditions and its impact on the business.

35 LEASE

(i) The Company’s lease asset primarily consist of leases for land and buildings, Plant and Machinery and Vehicles for factory and offices having the various lease terms. Effective from April 1, 2019, the Company adopted Ind AS 116 “Leases" and applied the standard to all lease contracts existing on April 1, 2019 using the modified retrospective method. Consequently, the Company recorded the lease liability at the present value of the remaining lease payments discounted at the incremental borrowing rate as on the date of transition and has measured right of use asset at an amount equal to lease liability adjusted for any related prepaid and accrued lease payments previously recognised.

(ii) The following is the summary of practical expedients elected on initial application:

(a) Applied a single discount rate to a portfolio of leases of similar assets in similar economic environment with a similar end date,

(b) Applied the exemption not to recognize right-of-use assets and liabilities for leases with less than 12 months of lease term and low value lease on the date of initial application,

(c ) Excluded the initial direct costs from the measurement of the right-of-use asset at the date of initial application,

(d) Applied the practical expedient by not reassessing whether a contract is, or contains, a lease at the date of initial application. Instead applied the standards only to contracts that were previously identified as leases under Ind AS 17.

(e ) Used hindsight in determining the lease term where the contract contained options to extend or terminate the lease.

(v) The maturity analysis of lease liabilities are disclosed in N ote- 2.14.

(vi) The weighted average incremental borrowing rate applied to lease liabilities as at April 1,2020 is 11%.

(vii) Rental expense recorded for short-term and low value leases was Rs.2075505/- for the year ended March 31,2021.

(viii) The Company does not face a significant liquidity risk with regard to its lease liabilities as the current assets are sufficient to meet the obligations related to lease liabilities as and when they fall due.

Previous year figures above are indicated in brackets.

Previous year figure have been regrouped/rearranged, wherever found necessary.

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Mar 31, 2018

1. CORPORATE INFORMATION

Bajaj Steel Industries Limited ( the Company ) is a public limited company domiciled and incorporated in India and its shares are publicly traded on the Bombay Stock Exchange ( BSE ) and Calcutta Stock Exchange ( CSE ). The registered office of the company is situated at C-108, MIDC Industrial Area, Nagpur 440 028.

The principal business activities of the company is manufacturing of Cotton ginning and Pressing Machineries, Pre fabricated building structure, components and allied products, which it handles it from its Steel division and manufacturing of Master Batches which it handles from its Plastic division . Presently, all the manufacturing facilities of the company are in the state of Maharashtra.

The company has wholly owned subsidiaries in the state of Alabama, USA and Uganda.

d) Notes to first time adoption

Note 2 : Change in Fair valuation of Financial Instruments

Under the previous GAAP, investments in equity instruments and mutual fund were classified as long term investments or current investments based on the intended holding period and realisation. Long -term investments were carried at cost less provision for other than temporary decline in the value of such investments. Current investments were carried at lower of cost and fair value. Under Ind AS, these investments are required to be measured at fair value at each reporting period. The resulting fair value changes of these investments (other than equity instruments designated at fair value through OCI) have been recognised in retained earnings as at the date of transition and subsequently in the profit or loss for the year ended 31st March, 2017.

Fair value changes with respect to investments in equity instrument designated fair value through OCI have been recognised in Equity Investment Reserve as at the date of transition and subsequently in other comprehensive income for the year ended 31st March 2017. This increased other reserve by Rs. 20.44 Lacs as at 31st March, 2017 (1 April,2016 Rs. 56.52 Lacs)

Consequent to the above, the total equity as at 31st March, 2017 increased by Rs. 20.44 Lacs (1 April,2016 Rs. 56.52 Lacs) and total comprehensive income for the year ended 31st March 2017 increased by Rs. 37.48 Lacs.

Note 3 : Provision for doubtful debts

Under the previous GAAP, the management had provided for doubtful debts based on its assessment of recoverability from the debtors. Ind AS requires the company to make provision for doubtful debts based on the expected credit loss model. Upon transition to Ind AS, the company has applied the expected credit loss model and has reworked the quantum of provision for doubtful debts. The differential figures as on 1st April, 2016 amounting to Rs.50.47 Lacs has been adjusted in retained earnings and the differential amount for the year ended 31st March, 2017 amounting to Rs.48.86 Lacs has been charged to the statement of profit and loss for the said year.

Note 4 : Deferred Tax Adjustments

Tax adjustmets relating to above adjustments are recognised and adjusted in retained earnings on the date of transition. Deferred tax adjustments relating to the year ended 31st March, 2017 have been adjusted in the statement of profit and loss for the said year.

b) Terms/rights attached to Equity Shares

The company has only one class of equity shares having a par value of Rs. 10/- 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 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.

c) The Board of Directors, in its meeting on 30th May, 2018, have proposed a final dividend of Rs. 3/- per equity share for the financial year ended 31st March 2018. The proposal is subject to the approval of the shareholders at the Annual General Meeting to be held and if approved, would result in a cash outflow of approximately Rs. 84.21 lacs including corporate dividend tax.

Nature of Reserves

Securities Premium

Security Premium reserve is used to record the premium on issue of shares. The reserve is utilised in accordance with the provisions of the Companies Act, 2013.

General Reserve

The General reserve is used from time to time for transfer of profits from surplus in statement of Profit and Loss for appropriation purposes.

Capital Reserve

This reserve represents the subsidy from Government and amount received upon reissue of forfeited shares and upon forfeiture of share warrants.

Equity Investment Reserve

This reserve represents the cumulative gains and losses arising on the revaluation of equity instruments measured at fair value through other comprehensive income, net off amounts reclassified to retained earnings when those assets have been disposed off.

d. Amount recognised in the other comprehensive income

Return on plan assets

Actuaial (gains)/losses arising from change in demographic assumptions

Sensitivity for significant actuarial assumptions is computed by varying one actuarial assumption used for the valuation of the defined benefit obligation by one percentage, keeping all other actuarial assumptions constant.

5 (a) On the basis of physical verification of assets, as specified in Ind AS 36 and cash generating capacity of those assets, in the management perception there is no impairment of such assets as appearing in the balance sheet as on 31.03.2018.

(b) The company has invested USD 1668000 (equivalent to Rs. 10.26 crs) in its wholly owned subsidiary M/s. Bajaj Coneagle LLC, USA. Inspite of operating at decent gross profit margin, the said subsidiary had been incurring substantial losses every year since its incorporation till FY-2016-17, primarily due to low demand. However, now the subsidiary is well recognised in the local market and getting good orders and has made some profit in F.Y. 2017-18 and the overhead costs is also being considerably reduced. The Management expects that the subsidiary will be earning sizeable profits and the entire accumulated losses will be recovered by the end of F.Y. 2019-20 and that the subsidiary will start giving profits in the future years thereafter. In view of this, no provisioning of Impairment of assets, as per Ind AS - 36 is being considered in the accounts.

6. Certain Balances under Advance from Customers, Trade Payables, Capital Advances, Trade Receivables and Advances Recoverable in cash or in kind or value to be received are subject to Confirmation.

Management estimations and assumptions

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

b) 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:

(i) The fair values of the quoted shares and unquoted mutual funds are based on NAVs at the reporting date.

(ii) The fair values of the unquoted equity shares have been determined based on certifications from valuers who have used Net Asset Value approach for determining the fair values.

Level 1: Quoted Prices in active markets for identical assets or liabilities

Level 2 : Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices).

Level 3: Inputs for the assets or liabilities that are not based on observable market data (unobservable inputs).

The company''s policy is to recognize transfers into and the transfers out of fair value hierarchy levels as at the end of the reporting period. There are no transfers between level 1 and level 2 during the end of the reported periods.

7. Financial Risk Management

The Company s principal financial liabilities comprise loans and borrowings, trade and other payables. The main purpose of these financial liabilities is to finance the Company s operations. The Company s principal financial assets include loans, trade and other receivables, and cash and cash equivalents that derive directly from its operations.

The Company s activities expose it to various financial risks: market risk, credit risk and liquidity risk. The company tries to foresee the unpredictable nature of financial markets and seek to minimise potential adverse impact on its financial performance. The senior management of the company oversees the management of these risks. The Audit Committee has additional oversight in the area of financial risks and controls. It is the Company s policy that no trading in derivatives for speculative purposes may be undertaken.

8. CAPITAL MANAGEMENT

The following are the objectives of Capital management policy of the company:

(i) Safeguard its ability to continue as a going concern, so that it can continue to provide returns for shareholders and benefits for other stakeholders, and

(ii) Maintain an optimal capital structure to reduce the cost of capital

As a part of capital management strategy, the company may adjust the amount of dividends paid to shareholders, issue new shares, raise debt capital or sell assets to reduce debt. The company monitors capital basis a gearing ratio which is calculated by dividing the total borrowings by total equity. The company s strategy is to maintain a gearing ratio as possible as lower. In order to achieve this overall objective, the company ensures to meet its financial covenants attached to the interest bearing loans and borrowings. There have never been any breaches in financial covenants of any interest bearing loans and borrowings in the past and also in the current period.

9. Inventories of raw materials include obsolete and slow moving stock, cost where of was Rs.253.45 lacs, being carried at estimated net realisable value of Rs. 52.78 lacs. There is no effect in profit or loss for the year due to such write down of inventories.

10. With effect from 1st January 2018, the steel division of the company has changed the method of providing depreciation from Written Down Value (WDV) Method to Straight Line Method (SLM). Due to such change in the method of depreciation, the depreciation for the year is lower by lacs and consequently, profit for the year is higher by Rs. 103.07 lacs.

11. On the basis of physical verification of assets, as specified in IND AS - 36 and cash generation capacity of those assets, in the management perception there is no impairment of such assets as appearing in the balance sheet as on 31.03.2018.

12. a)Previous year figures above are indicated in brackets.

b) Previous year figure have been regrouped/rearranged, wherever found necessary.

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Mar 31, 2016

1) Estimated amount of contracts to be executed on Capital accounts and not provided for \ 172.78 lacs (P.Y. \ 120.33 lacs), advance there against Rs, 76.00 lacs (P.Y. RS, 11.39 lacs).

2) According to the accounting system consistently followed by the Company, excise duty payable on finished goods is accounted for at the time of removal of the same for sale. Had the said liability been provided, the same would have resulted in higher value of inventory having no impact on the profit for the year.

3) In absence of adequate information relating to the suppliers under the Micro Small and Medium Enterprises Development Act, 2006, the Company is unable to identify such suppliers, hence the Information required under the said Act, cannot be ascertained.

4) On the basis of physical verification of assets, as specified in Accounting Standard

- 28 and cash generating capacity of those assets, in the management perception there is no impairment of such assets as appearing in the balance sheet as on 31.03.2016.

5) Certain Balances under Advance from Customers, Trade Payables, Capital Advances, Trade Receivables and Advances Recoverable in cash or in kind or value to be received are subject to Confirmation.

6) Related parties and transactions with them as specified in the Accounting Standared-18 on Related Party Disclosures issued by the ICAI has been identified and given below,

7. Enterprises where Control Exists : Bajaj Congealed LLC (Wholly Owned Foreign

Subsidiary)

Bajaj Steel Industries (U) Limited (Wholly Owned Foreign Subsidiary)

Relatives Shri Hargovind Bajaj, Smt Devika Bajaj, Sri Lav Bajaj, Sri Vedant Bajaj.

(b) Enterprises over which Key Management personnel and their relatives are able to exercise Significant Influence-

Associated Biscuit Company Limited, Bajaj Chemoplast (I) Limited, Bajaj Trade Development Limited, Bajaj Exports Private Limited, Rohit Polytex Limited, Prosperous Finance Services Limited, Ampee Textiles Private Limited, Twinstar Plasticoats Private Limited, Bajaj Global Limited, Vidarbha Tradelinks Pvt. Limited, Glycosic Merchants Private Limited, Xerxes Traders Pvt. Ltd., Bajaj Marketing Services, Rohit Machines & Fabricators Limited, Gangalaxmi Agrotech Limited, Gangalaxmi Industries Ltd, Luk Technical Services Pvt Limited ,Luk Plastcon Limited, Plast Master Batches Limited, Luk Infrastructure Private Limited, Tashi India Limited, Luk Bedrocks Private Limited, Nagpur Infotech Pvt.Ltd, Bajaj Polymin Ltd., Luk Bricks Pvt. Ltd., Bajaj Polyblends Pvt. Ltd , Bajaj Superpack Ltd, Bajaj Gintech Pvt. Ltd., Bajaj Plastics Pvt. Ltd., Bajaj Reinforcement LLP and Bajaj Cotgin Pvt. Ltd.

NOTES TO THE ACCOUNTS

8) The " Earning per share (EPS)" has been calculated as specified in Accounting Standard-20 issued by the Institute of Chartered Accountants of India by dividing the Net Profit after Tax for the year by the number of shares alloted by the Company.

9) The disclosures required under accounting standard-15:Employees Benefit, notified in the company''s (Accounting standard) Rules.

Defined Benefit Plan

The present value of obligation is determined based on actuarial valuation using the Projected Unit Credit Method, which recognizes each period of service as giving rise to additional unit of employee benefit entitlement and measures each unit separately to build up the final obligation.

NOTES TO THE ACCOUNTS

The estimates of future salary increase considered in the actuarial valuation takes into account factors like inflation, seniority, promotion and other relevant factors. The expected return on Plan Assets is based on actuarial expectations of the average long term rate of return expected on investments of the fund during the estimated terms of the obligations. The above information is certified by the Actuary.

10) a) Previous year figures above are indicated in brackets.

b) Previous year figure have been regrouped/rearranged, wherever found necessary.

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Mar 31, 2015

1) Estimated amount of contracts to be executed on Capital accounts and not provided for Rs. 120.33 lacs (P.Y. f 517.99 lacs), advance thereagainst Rs. 11.39 lacs (P.Y. f 135.70 lacs).

2) According to the accounting system consistently followed by the Company, excise duty payable on finished goods is accounted for at the time of removal of the same for sale. Had the said liability been provided, the same would have resulted in higher value of inventory having no impact on the profit for the year.

3) (a) Due to insufficient information from suppliers regarding their SSI status, the amount due to Small scale Industrial Undertakings cannot be ascertained.

(b) In absence of adequate information relating to the suppliers under the Micro, Small and Medium Enterprises Development Act, 2006, the Company is unable to identify such suppliers, hence the Information required under the said Act, cannot be ascertained.

4) In terms of provisions of the Companies Act, 2013, the rates of depreciation on tangible assets on written down value method have been recalculated based on useful life of the assets as prescribed under schedule-II of the said Act, effective from 01.04.2014. Consequently, depreciation for the year is higher by Rs.354.96 Lakhs.

5) On the basis of physical verification of assets, as specified in Accounting Standard - 28 and cash generating capacity of those assets, in the management perception there is no impairment of such assets as appearing in the balance sheet as on 31.03.2015.

6) Certain Balances under Advance from Customers, Trade Payables, Capital Advances, Trade Receivables and Advances Recoverable in cash or in kind or value to be received are subject to Confirmation.

7) Related parties and transactions with them as specified in the Accounting Standard- 18 on "Related Party Disclosures" issued by the ICAI has been identified and given below;

1. Enterprises where Control Exists: Bajaj Coneagle LLC (Wholly Owned Foreign Subsidiary)

2. Other Related parties with whom the Company had transactions:

(a) Key Management personnel and there relatives:- Shri Rohit Bajaj (Chairman cum Managing Director), Shri Sunil Bajaj (Executive Director), Shri Ashish Bajaj (CEO of Superpack Division), Shri Vinod Kr. Bajaj (Director) Dr. M.K. Sharma ( Director and CEO of the Company), Shri Manish Sharma (CFO), Shri Rahul Patwi (Company Secretary).

Relatives :- Shri Hargovind Bajaj, Smt Devika Bajaj, Shri Lav Bajaj, Shri Vedant Bajaj.

(b) Enterprises over which Key Management personnel and their relatives are able to exercise Significant Influence Associated Biscuit Company Limited, Bajaj Chemoplast (I) Limited, Bajaj Trade Development Limited, Bajaj Exports Private Limited, Rohit Polytex Limited, Prosperous Finance Services Limited, Ampee Tex- tiles Private Limited, Twinstar Plasticoats Private Limited, Bajaj Global Limited, Vidarbha Tradelinks Pvt. Limited, Glycosic Merchants Private Limited, Xerxes Trad- ers Pvt. Ltd., Bajaj Marketing Services, Rohit Machines & Fabricators Limited, Gangalaxmi Agrotech Limited, Gangalaxmi Industries Ltd, Luk Technical Services Pvt Limited ,Luk Plastcon Limited, Plast Master Batches Limited, Luk Infrastructure Private Limited, Enbee Trade and Finance Limited , Tashi India Limited, Luk Bed- rocks Private Limited, Nagpur Infotech Pvt.Ltd, Bajaj Polymin Ltd., Luk Bricks Pvt. Ltd., Bajaj Polyblends Pvt. Ltd , Bajaj Superpack Ltd, Bajaj Gintech Pvt. Ltd., Bajaj Plastics Pvt. Ltd., Bajaj Reinforcement LLP and Bajaj Cotgin Pvt. Ltd.

8) The " Earning per share (EPS)" has been calculated as specified in Accounting Stan- dard-20 issued by the Institute of Chartered Accountants of India by dividing the Net Profit after Tax for the year by the number of shares alloted by the Company.

9) The disclosures required under accounting standard-15:Employees Benefit, notified in the company's (Accounting standard) Rules.

The estimates of future salary increase considered in the actuarial valuation takes into account factors like inflation, seniority, promotion and other relevant factors. The expected return on Plan Assets is based on actuarial expectations of the average long term rate of return expected on invest- ments of the fund during the estimated terms of the obligations. The above information is certified by the Actuary.

10) a) Previous year figures above are indicated in brackets.

b) Previous year figure have been regrouped/rearranged, wherever found necessary.

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Mar 31, 2014

1) Contingent liabilities (not provided for) in respect of:-

(Rs. In Lacs)

2013-2014 2012-2013

a) Excise duty 0.43 0.43

b) Customs Duty 136.60 136.60

c) Sales Tax 21.04 35.38

d) Income Tax 301.57 301.57

e) Entry Tax 0.58 2.24

2) Estimated amount of contracts to be executed on Capital accounts and not provided for Rs. 517.99 lacs (P.Y. Rs. 15.01 lacs), advance there against Rs. 135.70 lacs (PY. Rs. 4.58 lacs).

3) According to the accounting system consistently followed by the Company, excise duty payable on finished goods is accounted for at the time of removal of the same for sale. Had the said liability been provided, the same would have resulted in higher value of inventory having no impact on the profit for the year.

4) a) Due to insufficient information from suppliers regarding their SSI status, the amount due to Small scale Industrial Undertakings cannot be ascertained.

b) In absence of adequate information relating to the suppliers under the Micro, Small and Medium Enterprises Development Act, 2006, the Company is unable to identify such suppliers, hence the Information required under the said Act, cannot be ascertained.

5) On the basis of physical verification of assets, as specified in Accounting Standard - 28 and cash generating capacity of those assets, in the management perception there is no impairment of such assets as appearing in the balance sheet as on 31.03.2014

6) Certain Balances under Advance from Customers, Trade Payables, Capital Advances, Trade Receivables and Advances Recoverable in cash or in kind or value to be received are subject to Confirmation.

7) Related parties and transactions with them as specified in the Accounting Standard-18 on "Related Party Disclosures" issued by the ICAI has been identified and given below;

1. Enterprises where Control Exists:

Bajaj Coneagle LLC (Wholly Owned Foreign Subsidiary)

2. Other Related parties with whom the Company had transactions:

a) Key Management personnel there relatives :-

Sri Rohit Bajaj (Managing Director), and Sri Sunil Bajaj (Executive Director), Sri Ashish Bajaj (Chief Executive Officer), Sri Vinod Kr. Bajaj (Director), Sri Manish Sharma (CFO), Sri Jagdish Shirke (Company Secretary)

Relatives :-

Sri Hargovind Bajaj, Smt Devika Bajaj, Sri Lav Bajaj, Sri Vedant Bajaj.

b) Enterprises over which Key Management personnel and their relatives are able to exercise Significant Influence-

Associated Biscuit Company Limited, Bajaj Chemoplast (I) Limited, Bajaj Trade Development Limited, Bajaj Exports Private Limited, Rohit Polytex Limited, Prosperous Finance Services Limited, Ampee Textiles Private Limited, Twinstar Plasticoats Private Limited, Bajaj Global Limited, Vidarbha Tradelinks Pvt. Limited, Glycosic Merchants Private Limited, Bajaj Marketing Services, Rohit Machines & Fabricators Limited, Gangalaxmi Agrotech Limited, Gangalaxmi Industries Ltd, Luk Technical Services Pvt Limited ,Luk Plastcon Limited, Plast Master Batches Private Limited, Luk Infrastructure Private Limited, Enbee Trade and Finance Limited , Tashi India Limited, Luk Bedrocks Private Limited, Nagpur Infotech Pvt.Ltd, Bajaj Polymin Ltd., Luk Bricks Pvt. Ltd., Bajaj Polyblends Pvt. Ltd , Bajaj Superpack Ltd, Bajaj Gintech Pvt. Ltd., Bajaj Plastics Pvt. Ltd., Bajaj Reinforcement LLP and Bajaj Cotgin Pvt. Ltd.

8) The" Earning per share (EPS)" has been calculated as specified in Accounting Standard-20 issued by the Institute of Chartered Accountants of India by dividing the Net Profit after Tax for the year by the number of shares alloted by the Company.

Defined Benefit Plan

The present value of obligation is determined based on actuarial valuation using the Projected Unit Credit Method, which recognises each period of service as giving rise to additional unit of employee benefit entitlement and measures each unit separately to build up the final obligation.

9) a) Previous year figures above are indicated in brackets.

b) Previous year figure have been regrouped/rearranged, wherever found necessary.

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Mar 31, 2013

1. Contingent liabilities (not provided for) in respect of:- (Rs. In Lacs)

2012-2013 2011-2012

a) Excise duty 0.43 0.43

b) Customs Duty 136.60 136.60 c) Sales Tax 35.38 36.21

d) Income Tax 259.49 200.89

e) Entry Tax 2.24 2.24

2. Estimated amount of contracts to be executed on Capital accounts and not provided for Rs. 15.01 lacs (PY. Rs. 44.40 lacs), advance there against Rs. 4.58 lacs (PY. Rs. 28.15 lacs).

3. According to the accounting system consistently followed by the Company, excise duty payable on finished goods is accounted for at the time of removal of the same for sale. Had the said liability been provided, the same would have resulted in higher value of inventory having no impact on the profit for the year.

4. (a) Due to insufficient information from suppliers regarding their SSI status, the amount due to Small scale Industrial undertakings can not be ascertained.

(b) In absence of adequate information relating to the suppliers under the Micro, Small and Medium Enterprises Development Act, 2006, the Company is unable to identify such suppliers, hence the Information required underthe said Act, cannot be ascertained.

5. On the basis of physical verification of assets, as specified in Accounting Standard - 28 and c a s h generating capacity of those assets, in the management perception there is no impairment of such assets as appearing in the balance sheet as on 31.03.2013

6. Certain Balances under Advances from Customers, Trade payables, Capital Advances, Trade receivables and Advances Recoverable in cash or kind or value to be received are subject to Confirmation.

7. Related parties and transactions with them as specified in the accounting standard-18 on "Related Party Disclosures" issued by the ICAI has been identified and given below:

1. Enterprises where control exists:

Bajaj Coneagle LLC (Wholly owned foreign subsidiary)

2. Other related parties with whom the Company had transactions:

a) Key Management Personnel and three relatives:- Sri Rohit Bajaj (Managing Director),

Sri Sunil Bajaj (Executive Director) and Sri Ashish Bajaj (Chief Executive Officer)

Relatives:- Sri Hargovind Bajaj, Smt Devika Bajaj,

Sri Lav Bajaj, Sri Vedant Bajaj

b) Enterprises over which Key Management Personnel and their relatives are able to exercise significant influence -

Associated Biscuit Company Limited, Bajaj Chemoplast (I) Limited, Bajaj Trade Development Limited, Bajaj Exports Private Limited, Rohit Polytex Limited, Prosperous Finance Services Limited, AmpeeTextiles Private Limited, Twinstar Plasticoats Private Limited,Bajaj Global Limited, Sidhi Vinimay Private Limited, Vidarbha Tradelinks Pvt. Limited, Glycosic Merchants Private Limited, Bajaj Marketing Services, Rohit Machines & Fabricators Limited, Gangalaxmi Agrotech Limited, Gangalaxmi Industries Ltd, Luk Technical Services Pvt Limited, Luk Plastcon Limited, Plast Master Batches Limited, Luk Infrastructure Private Limited, Enbee Trade and Finance Limited , Tashi India Limited, Luk Bedrocks Private Limited, Nagpur Infotech Pvt.Ltd, Bajaj Polymin Ltd., Luk Bricks Pvt. Ltd., Bajaj Polyblends Pvt. Ltd , Bajaj Superpack Ltd, Bajaj Gintech Pvt. Ltd., Bajaj Plastics Pvt. Ltd., and Bajaj Cotgin Pvt.Ltd., Tashi Rainforcement LLP.

8. The "Earning Per Share" (EPS) has been calculated as specified in Accounting Standard 20 issued by the Institute of Chartered Accountants of India by dividing the Net Profit after Tax for the year by the number of shares alloted by the Company

The estimates of future salary increase considered in the actuarial valuation takes into account factors like inflation, seniority, promotion and other relevantfactors. The expected return on Plan Assets is based on actuarial expectations of the average long term rate of return expected investments of the fund during the estimated terms of the obligations. The above information is certified by the Actuary.

9. a) Previous yearfigures above are indicated in brackets.

b) Previous yearfigure have been regrouped/rearranged, whereverfound necessary.

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Mar 31, 2012

A) Terms/rights attached to Equity Shares

The company has only one class of equity shares having a par value of Rs.10/- 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.

During the year ended 31 March 2012, the amount of per share dividend recognized as distributions to equity shareholders was Rs. 3/- (31 March 2011: Rs. 2/-)

In the event of liquidation of the company, the holders of equity shares will be entitled to receive 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.

1) Contingent liabilities (not provided for) in respect of :-

(Rs. In Lacs)

2011-2012 2010-2011

a) Labour matters - 2.88

b) Excise duty 0.43 0.43

c) Customs Duty 136.60 136.60

d) Sales Tax 36.21 36.21

e) Income Tax 200.89 200.89

f) Entry Tax 2.24 2.24

2) Estimated amount of contracts to be executed on Capital accounts and not provided for Rs. 44.40 lacs (P.Y. Rs. 162.14 lacs), advance thereagainst Rs. 28.15 lacs (P.Y. Rs. 57.25 lacs).

3) According to the accounting system consistently followed by the Company, excise duty payable on finished goods is accounted for at the time of removal of the same for sale. Had the said liability been provided, the same would have resulted in higher value of inventory having no impact on the profit for the year.

4)(a) As per the information available with the Company and relied upon by the Auditors, Sundry Creditors include Rs. 32,828,705/- (P.Y. Rs. 55,989,747/-) due to Small Scale Industrial Undertakings (SSI). Names of the SSI Undertakings to whom there are dues for more than 30 days are Boltnut (India), Hindustan Metal Industries, Kirti Fasteners, Laxmi Iron & Steel Industries, Raju Steel Industries, Sanvijay Rolling & Engineering, Gangalaxmi Agrotech Limited and Luk Technical Services Private Limited.

(b) In absence of adequate information relating to the suppliers under the Micro, Small and Medium Enterprises Development Act, 2006, the Company is unable to identify such suppliers, hence the Information required under the said Act, cannot be ascertained.

5) Related Party Disclosures:

1. Enterprises where control exists: None

2. Other related parties with whom the Company had transactions:

a) Key Management Personnel - Sri Rohit Bajaj (Managing Director), Sri Sunil Bajaj (Executive Director) and Sri Ashish Bajaj (Chief Executive Officer)

b) Enterprises over which Key Management Personnel and their relatives are able to exercise significant influence - Associated Biscuit Company Limited, Bajaj Chemoplast (I) Limited, Bajaj Trade Development Limited, Bajaj Exports Private Limited, Rohit Polytex Limited, Prosperous Finance Services Limited, Ampee Textiles Private Limited, TwinstarPlasticoats Private Limited, Bajaj Global Limited, Ridhi Vinimay Private Limited, Sidhi Vinimay Private Limited, Vidarbha Tradelinks Pvt. Limited, Glycosic Merchants Private Limited, Bajaj Marketing Services, Rohit Machines & Fabricators Limited, Bajaj Packaging, Gangalaxmi Agrotech Limited, Gangalaxmi Industries Ltd, Luk Technical Services Pvt Limited ,Luk Plastcon Limited, Plast Master Batches Private Limited, Luk Infrastructure Private Limited, Enbee Trade and Finance Limited , Tashi India Limited, Luk Bedrocks Private Limited, Nagpur Infotech Pvt.Ltd, Bajaj Polymin Ltd., Luk Bricks Pvt. Ltd., Bajaj Polyblends Pvt. Ltd , Bajaj Superpack Ltd, Bajaj Gintech Pvt. Ltd., Bajaj Plastics Pvt. Ltd., and Bajaj Cotgin Pvt. Ltd.

3. Disclosures of transactions between the Company and related parties and the status of outstanding balances as on 31.03.2012:

6) On the basis of physical verification of assets, as specified in Accounting Standard - 28 and cash generating capacity of those assets, in the management perception there is no impairment of such assets as appearing in the balance sheet as on 31.03.2012.

Defined Benefit Plan

The present value of obligation is determined based on actuarial valuation using the Projected Unit Credit Method, which recognises each period of service as giving rise to additional unit of employee benefit entitlement and measures each unit separately to build up the final obligation.

The estimates of future salary increase considered in the actuarial valuation takes into account factors like inflation, seniority, promotion and other relevant factors. The expected return on Plan Assets is based on actuarial expectations of the average long term rate of return expected on investments of the fund during the estimated terms of the obligations. The above information is certified by the Actuary.

7) a) Previous year figures above are indicated in brackets.

b) Previous year figure have been regrouped/rearranged, wherever found necessary.

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Mar 31, 2011

1) Contingent liabilities (not provided for) in respect of :-

(Rs. In Lacs)

2010-2011 2009-2010

a) Labour matters 2.88 7.40

b) Excise duty 0.43 6.57

c) Customs Duty 136.60 136.60

d) Sales Tax 36.21 39.58

e) Income Tax 200.89 -

f) Entry Tax 2.24 -

2) Estimated amount of contracts to be executed on Capital accounts and not provided for Rs. 162.14 lacs (P.Y. Rs. 285.08 lacs), advance thereagainst Rs. 57.25 lacs (P.Y. Rs. 207.74 lacs).

3) According to the accounting system consistently followed by the Company, excise duty payable on finished goods is accounted for at the time of removal of the same for sale. Had the said liability been provided, the same would have resulted in higher value of inventory having no impact on the profit for the year.

4) In terms of the Resolution passed u/s 81(1A) of the Companies Act, 1956, the Board of Directors of the Company have allotted 300000 Convertible share Warrants of Rs. 10/- each at Rs. 264/- (Including Premium Rs. 254/- per warrant) in their meeting held on 11th May, 2010 on receipt of 25% application money aggregating to Rs. 198 Lacs. During the year 150000 fully paid Equity Shares of Rs. 10/- each were allotted on 29th March, 2011 on receipt of Rs. 297 Lacs, being the balance 75% payment in respect of 150000 Convertible Share warrants.

5)(a) As per the information available with the Company and relied upon by the Auditors, Sundry Creditors include Rs. 55,989,747/- (P.Y. Rs. 17,843,454/-) due to Small Scale Industrial Undertakings (SSI). Names of the SSI Undertakings to whom there are dues for more than 30 days are Boltnut (India), Hindustan Metal Industries, Kirti Fasteners, Laxmi Iron & Steel Industries, Raju Steel Industries, Sanvijay Rolling & Engineering, Gangalaxmi Agrotech Limited and Luk Technical Services Private Limited.

(b) In absence of adequate information relating to the suppliers under the Micro, Small and Medium Enterprises Development Act, 2006, the Company is unable to identify such suppliers, hence the Information required under the said Act, cannot be ascertained.

6) Sundry Debtors includes Rs. 528,871/-(P.Y. Nil) due from a Private Company in which director is interested.

7) Related Party Disclosures:

1. Enterprises where control exists: None

2. Other related parties with whom the Company had transactions:

a) Key Management Personnel - Sri Rohit Bajaj (Managing Director), Sri Sunil Bajaj (Executive Director) and Sri Ashish Bajaj (Chief Executive Officer)

b) Enterprises over which Key Management Personnel and their relatives are able to exercise significant influence - Associated Biscuit Company Limited, Bajaj Chemoplast (I) Limited, Bajaj Trade Development Limited, Bajaj Exports Private Limited, Rohit Polytex Limited, Prosperous Finance Services Limited, Ampee Textiles Private Limited, Twinstar Plasticoats Private Limited, Bajaj Global Limited, Ridhi Vinimay Private Limited, Sidhi Vinimay Private Limited, Vidarbha Tradelinks Pvt. Limited, Glycosic Merchants Private Limited, Bajaj Marketing Services, Rohit Machines & Fabricators Limited, Bajaj Packaging, Gangalaxmi Agrotech Pvt Limited, Gangalaxmi Industries Ltd, Luk Technical Services Pvt Limited ,Luk Plastcon Limited, Plast Master Batches Private Limited, Luk Infrastructure Private Limited, Enbee Trade and Finance Limited , Luk Bedrocks Private Limited, Nagpur Infotech Pvt.Ltd, Bajaj Polymin Pvt Ltd., Luk Bricks Pvt. Ltd., Bajaj Polyblends Pvt. Ltd , Bajaj Superpack Ltd, Bajaj Gintech Pvt. Ltd., Bajaj Plastics Pvt. Ltd., and Bajaj Cotgin Pvt. Ltd.

8) On the basis of physical verification of assets, as specified in Accounting Standard – 28 and cash generating capacity of those assets, in the management perception there is no impairment of such assets as appearing in the balance sheet as on 31.03.2011.

9) The disclosures required under accounting standard-15:Employees Benefit, notified in the company's (Accounting standard) Rules.

Defined Benefit Plan

The present value of obligation is determined based on actuarial valuation using the Projected Unit Credit Method, which recognises each period of service as giving rise to additional unit of employee benefit entitlement and measures each unit separately to build up the final obligation.

The estimates of future salary increase considered in the actuarial valuation takes into account factors like inflation, seniority, promotion and other relevant factors. The expected return on Plan Assets is based on actuarial expectations of the average long term rate of return expected on investments of the fund during the estimated terms of the obligations. The above information is certified by the Actuary.

10. Previous year figures are rearranged/regrouped wherever considered necessary

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Mar 31, 2010

1) Contingent liabilities {not provided for) in respect of:-

(Rs. In Lacs)

2009-2010 2008-2009

a) Labour matters 7.40 7.04

b) Excise duty 6.57 6.57

c) Customs Duty 136.60 136.60

d) Sales Tax 39.58 7.98

2) Estimated amount of contracts to be executed on Capital accounts and not provided for Rs.285.08 lacs (P.Y. Rs. 22.93 lacs), advance thereagainst Rs.207.74 lacs (P.Y. Rs. 5.62 lacs).

3) According to the accounting system consistently followed by the Company, excise duty payable on finished goods is accounted for at the time of removal of the same for sale. Had the said liability been provided, the same would have resulted in higher value of inventory having no impact on the profit for the year.

4)a. As per the information available with the Company and relied upon by the auditors, Sundry Creditors include Rs.1 7,843.454/- (P.Y. Rs. 14,975,997/-) due to Small Scale Industrial Undertakings (SSI). Names of the SSI Undertakings to whom there are dues for more than 30 days are Boltnut (India), Hindustan Metal Industries, Kirti Fasteners, Laxmi Iron & Steel Industries, Raju Steel Industries, Sanvijay Rolling & Engineering, Gangalaxmi Agrotech Private Limited and Luk Technical Services Private Limited.

b. In absence of necessary information relating to the suppliers under the Micro, Small and Medium Enterprises Development Act, 2006 the Company is unable to identify such suppliers, hence the Information required under the said Act, cannot be ascertained.

5} The "Earning per share (EPS)" has been calculated as specified in Accounting Standard 20 issued by the Institute of Chartered Accountants of India by dividing the Net Profit after Tax for the year by the number of shares allotted by the Company.

6) Related Party Disclosures:

1. Enterprises where control exists: None

2. Other related parties with whom the Company had transactions:

a) Key Management Personnel - Shri Rohit Bajaj (Managing Director), Shh Sunil Baja| (Executive Director) and ShriAshish Bajaj (Whole Time Director)

Resigned on 29/10/2009

b) Enterprises over which Key Management Personnel and their relatives are able to exercise significant influence - Associated Biscuit Company Limited,Bajaj Chemoplast (I) Limited, Bajaj Trade Development Limited,Bajaj Exports Private Limited, Rohit Polytex Limited, Prosperous Finance Services Limited, Ampee Textiles Private Limited, Twinstar Plaslicoats Private Limited, Ridhi Vinimay Private Limited, Sidhi Vinimay Private Limited, Vidarbha Tradelinks Pvt. Limited, Glycosic Merchants Private Limited, Bajaj Marketing Services, Rohit Machines & Fabricators Limited, Bajaj Packaging, Gangalaxmi Agrotech Pvt Limited, Gangalaxmi Industries Ltd, Luk Technical Services Pvt Limited, Luk Plastcon Limited, Plast Master Batches Limited, Luk Infrastructure Private Limited, Enbee Trade and Finance Limited, Luk Bedrocks Private Limited, Nagput Infotech Pvt. Ltd, Bajaj Polymin Pvt. Ltd., Luk Cratt Pvt. Ltd., Bajaj Polyblends Pvt. Ltd Bajaj Superpack Pvt. Ltd, Bajaj Gintech Pvt. Ltd.. and Bajaj Plastics Pvt. Ltd.

7) On the basis of physical verification of assets, as specified in Accounting Standard -28 and cash generating capacity of those assets, in the management perception there is no impairment of such assets as appearing in the balance sheet as on 31.03.2010.

8 Previous year figures are rearranged/regrouped wherever considered necessary