Home  »  Company  »  Balkrishna Ind.  »  Quotes  »  Notes to Account
Enter the first few characters of Company and click 'Go'

Notes to Accounts of Balkrishna Industries Ltd.

Mar 31, 2015

NOTE NO.1 Current Year Previous Year Rupees Rupees

Contingent Liabilities and Commitments

(i) Contingent Liabilities

(a) Claims against the Company not acknowledged as debts

* Disputed claims for 103,77,77,048 145,49,46,696 excise, sales tax, customs and service tax

* Disputed income tax 4,73,05,121 22,45,010 demands

(b) Guarantees given by 15,05,90,479 13,41,01,626 the Company''s bankers on behalf of the Company against the Company''s Indemnity

(c) Corporate Guarantee given by the Company:

* To the President of India 334,56,88,269 858,75,00,000 through commissioner of Custom

(ii) Commitments

Estimated amount of contracts 204,71,90,222 296,73,80,759 remaining to be executed on capital account and not provided for

NOTE NO.2

A scheme of arrangement ("Scheme") under section 391 to 394 of the Companies Act, 1956 between Balkrishna Industries Limited (the Company), Balkrishna Paper Mills Limited (BPML), Nirvikara Paper Mill Limited (NPML), their respective shareholders and creditors was approved by Hon''ble High Court of Judicature at Bombay vide Order dated 19th December 2014.

Pursuant to the Scheme:

(a) BPML, which was engaged in the business of manufacturing of paper board, has been amalgamated with the Company with effect from the Appointed Date, i.e., 1st April 2013 whereby,

(i) The assets, liabilities and reserves of BPML has been vested with the Company and have been recorded at their respective book value, under the pooling of interest method of accounting for amalgamation.

(ii) 3,80,00,000 Equity shares of Rs. 10 each fully paid and 19,50,000 Preference Shares of Rs.10 each fully paid of BPML held by the Company have been cancelled.

(iii) No shares have been issued to the shareholders of BPML pursuant to the amalgamation.

(b) The Paper Division Undertaking of the Company have been demerged into NPML with effect from the Effective Date, i.e., 10th February 2015, whereby the Company''s investment of Rs. 5,00,000 in the share capital of NPML stands cancelled and an aggregate of 1,07,39,844 equity shares of Rs. 10 each of NPML were issued to the equity shareholders of the Company in the ratio of 1 equity share of NPML for every 9 equity shares held in the Company.

(c) The effect of the Scheme has been considered in these financial statements for the year ended 31st March, 2015 and therefore to that extent, the figures of the current year are not comparable with those of the previous year

(d) From the effective date the authorised share capital of the Company stands increased to Rs. 90,00,00,000 consisting of 44,00,00,000 Equity Shares of Rs. 2 each and 20,00,000 Redeemable Preference Shares of Rs. 10 each.

NOTE NO.3

(i) Figures in brackets in notes 35,40 and 42 pertain to previous year.

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


Mar 31, 2014

Current Year Previous Year NOTE NO.1 Rupees Rupees

Contingent Liabilities and commitments

(i) Contingent Liabilities

(a) Claims against the Company not acknowledge as debts

- Disputed claims for excise, sales tax, customs and service tax 145,49,46,696 22,63,07,241

- Disputed income tax demands 22,45,010 4,68,97,728

(b) Guarantees given by the Company''s bankers on behalf of the Company 13,41,01,626 12,44,17,577 against the Company''s Indemnity

(c) Corporate Guarantee given by the Company:

- To the President of India through commissioner of Custom 858,75,00,000 2000,00,00,000

- To other Company NIL 7,27,68,750

(ii) Commitments

Estimated amount of contracts remaining to be executed on capital account 296,73,80,759 385,10,22,142 and not provided for

NOTE NO.2

SEGMENT INFORMATION

(a) Primary Business Segments:- The Company has only one business segment, namely Tyres therefore primary business segment reporting as required by AS-17 is not applicable.

NOTE NO.3

I) Related Party Disclosures *

(Where transactions have taken place)

(a) Key Management Personnel (KMP)

Mr. Arvind Poddar - Managing Director, Mrs. VijayaLaxmi Poddar - Executive Director (w.e.f 30.05.2012) Mr. Rajiv Poddar - Joint Managing Director, Mr. Anurag Poddar - Executive Director (upto 29.05.2012), Mr. Vipul Shah - Director & Company Secretary

(b) Relatives of Key Management Personnel :

Mrs. Khushboo Poddar, Mrs. Pooja Dhoot, Mrs. Shyamlata Poddar (w.e.f. 01.06.2012)

(c) Other Related Parties -(Enterprises-KMP having significant influence/owned by major shareholders) Siyaram Silk Mills Ltd., Balgopal Holding & Traders Ltd., and Clothing Culture Ltd.

Disclosure in Respect of Material Related Party Transaction during the year :

1 Purchase of Goods/Materials includes : Balgopal Holding & Traders Limited. Rs. NIL (Previous Year Rs.28,02,800), Clothing Culture Limited. Rs.1,08,66,887 (Previous Year Rs.13,86,885), Siyaram Silk Mills Limited Rs.NIL (Previous Year Rs.7,71,775).

2 Sale of Goods/Materials includes : Clothing Culture Limited. Rs.3,33,851 (Previous Year Rs.4,59,19,286).

3 Expenses reimbursed includes : Siyaram Silk Mills Limited Rs.NIL (Previous Year Rs.13,838 ).

4 Rent Paid includes : Mrs. Pooja Dhoot Rs.1,04,71,428 (Previous Year Rs. 25,86,246).

5 Rent Received includes : Clothing Culture Limited Rs.5,39,329 (Previous Year Rs.2,69,664).

6 Recovery of Expenses includes : Clothing Culture Limited Rs.37,565 (Previous Year Rs.8,47,556), Siyaram Silk Mills Limited Rs.NIL (Previous Year Rs. 3,37,699).

7 Sale of Fixed Assets includes : Siyaram Silk Mills Limited Rs.NIL (Previous Year Rs.61,96,613).

8 Purchase of Fixed Assets includes under Other Related Parties : Siyaram Silk Mills Limited Rs. NIL (Previous Year Rs.5,17,399).

9 Assignment of Insurance Policy includes- under KMP : Mrs. VijayaLaxmi Poddar Rs.NIL (Previous Year Rs. 93,43,554), under Relative of KMP Mrs. Shyamlata Poddar Rs.NIL (Previous Year Rs. 52,47,080).

10 Surrender of Insurance Policy includes : Mr. Anurag Poddar Rs.NIL (Previous Year Rs. 32,33,379).

11 Loan Given ( ICD ) includes : Balgopal Holding & Traders Limited Rs.NIL (Previous Year Rs.1,50,00,000), Clothing Culture Limited Rs. NIL (Previous Year Rs.1,50,00,000).

12 Loan Refund Received ( ICD )includes : Balgopal Holding & Traders Limited Rs.NIL (Previous Year Rs.1,50,00,000), Clothing Culture Limited Rs.NIL (Previous Year Rs.1,50,00,000).

13 Interest Received on Loan Given ( ICD ) includes : Balgopal Holding & Traders Limited Rs.NIL (Previous Year Rs.39,452), Clothing Culture Limited Rs.NIL (Previous Year Rs.2,38,356).

14 Payment to Key Managerial Personnel includes : Mr. Arvind Poddar Rs.16,20,04,921 (Previous Year Rs. 11,34,27,542), Mr. Rajiv Poddar Rs.10,14,74,589 (Previous Year Rs. 6,34,45,602), Mrs. Vijaylaxmi Poddar Rs.8,38,46,617 (Previous Year Rs.4,98,16,119), Mr. Anurag Poddar Rs.NIL (Previous Year Rs.19,16,210), Mr. Vipul Shah Rs.27,12,870 (Previous Year Rs.21,01,751), Payment to Relatives of Key Managerial Personnel includes : Mrs. Khushboo Poddar Rs.30,00,036 (Previous Year Rs.30,00,036), Mrs. Shyamlata Poddar Rs.30,00,036 (Previous Year Rs.17,00,018).

15 Payables to Key Management Personnel includes : Mr. Arvind Poddar Rs.12,60,00,000 (Previous Year Rs. 7,20,00,000), Mr. Rajiv Poddar Rs.7,54,83,871 (Previous Year Rs. 3,60,00,000), Mrs. Vijaylaxmi Poddar Rs.6,00,00,000 (Previous Year Rs.3,01,93,548), Mr. Vipul Shah Rs. 83,311(Previous Year Rs.90,836) and Payables to Relatives of Key Managerial Personnel includes : Mrs. Khushboo Poddar Rs.8,400 (Previous Year Rs.8,400), Mrs. Shyamlata Poddar Rs.8,400 (Previous Year Rs. 7,000).

NOTE NO.4

a) As at 31st March,2014, there are no Micro, Small and Medium Enterprises, as defined in the Micro, Small, Medium Enterprises Development Act, 2006, to whom the Company owes dues on account of principal amount together with interest and accordingly no additional disclosures have been made.

b) 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. This has been relied upon by the auditors.

a) Defined Contribution Plans- The Company''s contribution to defined contribution plans aggregating to Rs.5,90,05,947 (Previous Year Rs.5,28,68,129) has been recognised in the statement of profit and loss account under the heading ''Contribution to Provident and Other Funds'' (Note No. 27) .

b) The assumption of future salary increase, considered in actuarial valuation, takes into account of inflation and other relevant factors.

NOTE NO.5

Miscellaneous Expenses includes Rs. NIL ( Previous Year Rs.11,00,000) paid to a Political Party, Bhartiya Janta Party - Gujarat Pradesh

NOTE NO.6

The Company has received approval from stock exchanges in connection with its scheme of arrangement of its two subsidiary Companies namely Balkrishna Paper Mills Limited and Balkrishna Synthetics Limited, has filed Application in the High Court of Bombay for its approval.

NOTE NO.7

i) Figures in brackets in notes 33,34,39,41 and 49 pertain to previous year.

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


Mar 31, 2013

NOTE NO.1

Amount remitted in foreign currency on account of dividend:

The Company has not made any remittance in foreign currencies on account of dividend and does not have information as to the extent to which remittance in foreign currencies on account of dividend has been made by or on behalf of the non resident shareholders. The particulars of dividends paid to non-resident shareholders are as under :

NOTE NO.2 SEGMENT INFORMATION

(a) Primary Business Segments:-

The Company has only one business segment, namely Tyres therefore primary business segment reporting as required by AS-17 is not applicable.

(b) Secondary Segment - Geographical by location of customers

NOTE NO.3

I) Related Party Disclosures *

(Where transactions have taken place)

(a) Key Management Personnel (KMP)

Mr. Arvind Poddar - Managing Director, Mrs. Vijaylaxmi Poddar - Executive Director (w.e.f 30.05.2012), Mr. Rajiv Poddar - Executive Director , Mr. Anurag Poddar - Executive Director (upto 29.05.2012) , Mr. Basantkumar Bansal - Director Finance. (upto 11.02.2012), Mr. Vipul Shah - Director and Company Secretary (w.e.f. 11.02.2012)

(b) Relatives of Key Management Personnel :

Mrs. Khushboo Poddar, Mrs. Pooja Dhoot, Mrs. Shyamlata Poddar (w.e.f. 01.06.2012)

(c) Other Related Parties -(Enterprises-KMP having significant influence/owned by major shareholders) Siyaram Silk Mills Ltd., Govind Rubber Ltd., SPG Infrastructure Ltd., GRL International Ltd.(upto 02.12.2011), Balgopal Holding & Traders Ltd., and Clothing Culture Ltd.

Disclosure in Respect of Material Related Party Transaction during the year :

1 Purchase of Goods/Materials/Services includes : Balgopal Holding & Traders Ltd. Rs. 28,02,800 (Previous Year Rs.NIL), Clothing Culture Ltd. Rs.13,86,885 (Previous Year Rs.NIL), Siyaram Silk Mills Limited Rs.7,71,775 (Previous Year Rs.21,61,286),Govind Rubber Limited Rs.NIL (Previous Year Rs.27,58,322).

2 Sale of Goods/Materials/Services includes : Clothing Culture Ltd. Rs.4,59,19,286, (Previous Year Rs.NIL), Siyaram Silk Mills Limited Rs.NIL (Previous Year Rs.23,999), Govind Rubber Limited Rs.NIL (Previous Year Rs.15,41,254).

3 Expenses reimbursed inludes : Siyaram Silk Mills Limited Rs.13,838 (Previous Year Rs.NIL).

4 Rent Paid includes : Mrs. Pooja Dhoot Rs. 25,86,246 (Previous Year Rs.NIL).

5 Rent Received includes : Clothing Culture Limited Rs.2,69,664 (Previous Year Rs.NIL), Grl International Limited Rs.NIL (Previous Year Rs.15,88,320).

6 Recovery of Expenses includes : Clothing Culture Limited Rs. 8,47,556 (Previous Year Rs.NIL), Govind Rubber Limited Rs.1,608 (Previous Year Rs.4,73,498),Siyaram Silk Mills Limited Rs.3,37,699 (Previous Year Rs. 96,913).

7 Sale of Fixed Assets includes : Siyaram Silk Mills Limited Rs.61,96,613 (Previous Year Rs.NIL).

8 Purchase of Fixed Assets includes under Other Related Parties : Siyaram Silk Mills Limited Rs.5,17,399 (Previous Year Rs.NIL),Spg Infrastructure Limited Rs.NIL (Previous Year Rs.2,31,50,155) and purchase of Fixed Assets includes under KMP: Mr. Arvind Poddar Rs.NIL (Previous Year Rs.5,65,25,000), Mr. Rajiv Poddar Rs.NIL (Previous Year Rs.10,25,50,000).

9 Assignment of Insurance Policy includes- under KMP : Mrs. Vijaylaxmi Poddar Rs. 93,43,554 (Previous Year Rs. NIL), under Relative of KMP Mrs. Shyamlata Poddar Rs.52,47,080 (Previouse Year Rs. NIL)

10 Surrender of Insurance Policy includes : Mr. Anurag Poddar of Rs. 32,33,379 (Previous Year Rs. NIL).

11 Loan Given ( ICD ) includes : Balgopal Holding & Traders Limited Rs.1,50,00,000 (Previous Year Rs.NIL), Clothing Culture Limited Rs.1,50,00,000 (Previous Year Rs.NIL).

12 Loan Refund Received ( ICD ) includes : Balgopal Holding & Traders Limited Rs.1,50,00,000 (Previous Year Rs.NIL), Clothing Culture Limited Rs.1,50,00,000 (Previous Year Rs.NIL).

13 Interest Received on Loan Given ( ICD ) includes : Balgopal Holding & Traders Limited Rs.39,452 (Previous Year Rs.NIL), Clothing Culture Limited Rs.2,38,356 (Previous Year Rs.NIL).

14 Remuneration to Key Managerial Personnel includes : Mr. Arvind Poddar Rs.11,34,27,542 (Previous Year Rs. 5,18,02178), Mr. Rajiv Poddar Rs.6,34,45,602 (Previous Year Rs. 1,19,15,753), Mrs. Vijaylaxmi Poddar Rs.4,98,16,119 (Previous Year Rs.NIL), Mr. Anurag Poddar Rs.19,16,210 (Previous Year Rs.1,19,22,852), Mr. Vipul Shah Rs.21,01,751 (Previous Year Rs.3,55,331), Mr. Basantkumar Bansal Rs. NIL (Previous Year Rs.66,59,964) and Remuneration to Relatives of Key Managerial Personnel includes : Mrs. Khushboo Poddar Rs.30,00,036 (Previous Year Rs.5,52,460), Mrs. Shyamlata Poddar Rs. 17,00,018 (Previous Year Rs.NIL).

15 Payables to Key Management Personnel includes : Mr. Arvind Poddar Rs.7,20,00,000 (Previous Year Rs. 4,00,00,000), Mr. Rajiv Poddar Rs.3,60,00,000 (Previous Year Rs. 72,00,000), Mrs. Vijaylaxmi Poddar Rs.3,01,93,548 (Previous Year Rs.NIL), Mr. Anurag Poddar Rs.NIL (Previous Year Rs.72,00,000), Mr. Vipul Shah Rs.90,836 (Previous Year Rs.23,101), Mr. Basantkumar Bansal Rs. NIL (Previous Year Rs.52,650) , Payables to Relatives of Key Managerial Personnel includes : Mrs. Khushboo Poddar Rs.8,400 (Previous Year Rs.8,400), Mrs. Shyamlata Poddar Rs. 7,000 (Previous Year Rs.NIL) and Payables to Other Related Parties includes : Siyaram Silk Mills Limited Rs. NIL (Previous Year Rs. 2,23,130).

16 Receivables From Other Related Parties includes : Govind Rubber Limited Rs. NIL (Previous Year Rs. 13,410).

NOTE NO.4

(a) As at 31st March,2013, there are no Micro, Small and Medium Enterprises, as defined in the Micro, Small, Medium Enterprises Development Act, 2006, to whom the Company owes dues on account of principal amount together with interest and accordingly no additional disclosures have been made.

(b) 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. This has been relied upon by the auditors.

NOTE NO.5

Other Operating Revenue includes Rs.22,09,548 (Previous Year Rs. 22,09,548) in respect of refund of Regulatory Liability Charges paid in earlier years to Maharashtra State Electricity Board.

NOTE NO.6

Miscellaneous Expenses includes Rs.11,00,000 (Previous Year NIL) paid to a Political Party, Bhartiya Janta Party - Gujarat Pradesh.

NOTE NO.7

i) Figures in brackets in notes 33,34,39,41 and 49 pertain to previous year.

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


Mar 31, 2012

Current Year Previous Year NOTE NO.1 Rupees Rupees

Contingent Liabilities and commitments

(i) Contingent Liabilities

(a) Claims against the Company not acknowledge as debts

- Disputed claims for excise, sales tax and service tax 14,04,01,849 13,63,57,729

-Disputed income tax demands 7,90,00,211 13,87,94,873

(b) Guarantees given by the Company's bankers on behalf of the Company against 12,03,47,980 11,56,09,293 the Company's Indemnity

(c) Corporate Guarantee given by the Company:

- To President of India through commissioner of Custom 1581,25,00,000 650,00,00,000

- To the Subsidiary Company 77,66,504 NIL

-To the other Company 1,85,31,186 NIL

(ii) Commitments

Estimated amount of contracts remaining to be executed on capital account and not 739,22,50,639 272,21,65,628 provided for

(b) Till the year ended 31st March, 2011, the Company in accordance with the pre-revised Schedule VI requirement, was recognising dividend declared by subsidiary companies after the reporting date in the current year's statement of Profit and Loss if such dividend pertained to the period ending on or before the reporting date.The revised Schedule VI, applicable for financial years commencing on or after 1st April, 2011 does not contain this requirment. Hence, to comply with AS-9 Revnue Recognition the Company has recognised dividend as income only when the right to receive the same is establised by the reporting date.

NOTE NO.2

SEGMENT INFORMATION

(a) Primary Business Segments:-

The Company has only one business segment, namely Tyres (including Tubes and Flaps) therefore primary business segment reporting as required by AS-17 is not applicable.

NOTE NO.3

I) Related Party Disclosures *

(Where transactions have taken place)

(a) Key Management Personnel(KMP)

Mr. Arvind Poddar - Managing Director,

Mr. Rajiv Poddar - Executive Director,

Mr. Anurag Poddar - Executive Director,

Mr. B.K.Bansal - Director Finance (upto 11.02.2012),

Mr. Vipul Shah (w.e.f. 11.02.2012).

(b) Relatives of Key Management Personnel :

Mrs. Khushboo Poddar(w.e.f. 14.04.2010).

(c) Other Related Parties - (Enterprises-KMP having significant influence/owned by major shareholders) Siyaram Silk Mills Ltd., Govind Rubber Ltd., SPG Infrastructure Ltd., GRL International Ltd. (upto 02.12.2011), BKT Moulds Ltd. (upto 31.05.2010).

NOTE NO.4

(a) As at 31st March,2012, there are no Micro, Small and Medium Enterprises, as defined in the Micro, Small, Medium Enterprises Development Act, 2006, to whom the Company owes dues on account of principal amount together with interest and accordingly no additional disclosures have been made.

(b) 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. This has been relied upon by the auditors.

(a) Defined Contribution Plans-

The Company's contribution to defined contribution plans aggregating to Rs.3,74,79,154 (Previous Year Rs.2,99,24,817) has been recognised in the statement of profit and loss account under the heading 'Contribution to Provident and Other Funds' (Note No. 27).

(b) The assumption of future salary increase, considered in actuarial valuation, takes into account of inflation and other relevant factors.

NOTE NO.5

Other Operating Revenue includes Rs.22,09,548, (Previous Year Rs. 37,66,616) in respect of refund of Regulatory Liability Charges paid in earlier years to Maharashtra State Electricity Board.

NOTE NO.6

i) Figures in brackets in notes 33,35,39,41 and 49 pertain to previous year.

ii) The Revised Schedule VI to the Companies Act,1956 has become effective from current financial year for the prepration of financial statements. It has significantly changed the disclosure and presentation made in the financial statements. Previous year's figures have been regrouped/reclassified wherever necessary to correspond with the current year's classification/ disclosure.


Mar 31, 2011

Current Year Previous Year Rupees Rupees

1 Estimated amount of contracts remaining to be executed on capital account and not provided for (Net of advances) 272,21,65,628 58,31,36,817

2 Contingent Liabilities in respect of:

a) Guarantees given by the Companys bankers on behalf of the Company against the Companys indemnity 11,56,09,293 11,23,04,431

b) Corporate Guarantee given by the Company to President of India through commissioner of Custom 650,00,00,000 NIL

c) Interest payable on redemption of Foreign Currency Convertible Bonds Series B NIL 6,63,40,768

d) Disputed claims for excise, sales tax and service tax 13,63,57,729 10,47,06,650

e) Disputed income tax demands 13,87,94,873 8,10,81,240

(The outflow in respect of contingent liabilities is totally uncertain as the same depends on the final outcome of the disputes, wherever applicable)

3 Nature of security in respect of “Secured Loans”

I Working Capital Loans from Banks:

Cash Credits, Packing Credit, Bills Discounting and Buyers Credit:

Secured by first charge by way of hypothecation of stock of raw materials, stores and spares, stock in process, finished goods, material in transit, book debts and other movables on pari-passu basis and further secured by second parri-passu charge on fixed assets of the Company, both present and future.

II Term Loans from Bank:

Secured by hypothecation by way of first parri-passu charge on the all present and future movable assets of the Company situated at Chopanki,Waluj and Bhiwadi units.

III Term Loans from Others

DEG - Deutsche Investitions-und Entwicklungsgesellschaft mbH (In the previous year) Secured by pari-passu first charge on entire fixed assets of the Company, situated at Bhiwadi and Chopanki units and Wind farm at Jaisalmer, all in the state of Rajasthan.

4 Miscellaneous Income :

Miscellaneous Income includes Rs.37,66,616 (Previous Year Rs.47,79,584) in respect of refund of Regulatory Liability Charges paid in earlier years to Maharashtra State Electricity Board.

5 Pursuant to the sanction of the Honourable High Court, Bombay to the scheme of amalgamation, the assets and Liabilities of BKT Moulds Limited, a subsidiary of the Company, have been amalgamated with the Company with effect from 01/06/2010 in accordance with the Scheme so sanctioned. The effect of the amalgamation has been given in the accounts as per the Scheme sanctioned.

The amalgamation has been accounted for under the “The Purchase Method” as prescribed by AS-14. Accordinly the Assets and Liabilities of BKT Moulds Limited have been taken over on the basis of their fair values. As a result an amount of Rs.1,06,06,067 is transfered to Capital Surplus Reserve. (Reference is also invited to Note no. 16(c) hereunder).

18 SEGMENT INFORMATION

a) Primary Business Segments:-

The Company has only one business segment, namely Tyres(including Tubes and Flaps) therefore primary business segment reporting as required by AS-17 is not applicable.

20 I) Related Party Disclosures *

(Where transactions have taken place)

a) Key Management Personnel (KMP)

Mr. Arvind M. Poddar - Managing Director, Mr.Rajiv A. Poddar - Executive Director , Mr. Anurag P. Poddar - Executive Director Mr. B.K.Bansal - Director Finance.

b) Relatives of Key Management Personnel : Mrs. Khushboo R. Poddar (w.e.f. 14/04/2010).

c) Other Related Parties -(Enterprises-KMP having significant influence/owned by major shareholders) Siyaram Silk Mills Ltd., Govind Rubber Ltd., SPG Infrastructure Ltd., GRL International Ltd.,BKT Moulds Ltd.,Balgopal Holding & Traders Ltd.,S P Finance & Trading Ltd., S P Investrade (India) Ltd.,Sanchna Trading & Finance Ltd.,Poddar Brothers Investment Pvt. Ltd.

25 a) As at 31st March,2011, there are no Micro, Small and Medium Enterprises, as defined in the Micro, Small, Medium Enterprises

Development Act, 2006, to whom the Company owes dues on account of principal amount together with interest and accordingly no additional disclosures have been made. b) 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. This has been relied upon by the auditors.

26 Foreign Currency Convertible Bonds (FCCB)

During the year the Company has repaid 4.5% FCCB series B aggregating to USD 22 million on due date(i.e 30/12/2010).

27 Derivative Instruments

a) Hedging Contracts :

i) The Company uses forward exchange contracts to hedge its exposure to foreign exchanges and the Company does not use

such contracts for trading or speculation purpose. ii) Derivative Instruments outstanding

29 a) Figures in brackets in Notes 9,10,11,18, and 20 pertain to previous year.

b) The Previous year figures have been re-arranged and/or regrouped wherever necessary to make them comparable.


Mar 31, 2010

1 Nature of security in respect of "Secured Loans"

I Working Capital Loans from Banks:

Cash Credits, Packing Credit, Bills Discounting and Buyers Credit:

Secured by first charge by way of hypothecation of stock of raw materials, stores and spares, stock in process, finished goods, material in transit, book debts and other movables on pari-passu basis and further secured by second charge on fixed assets of the Company, both present and future, except certain fixed assets on which exclusive charge created in favour of G.E. Capital Services India.

II Term Loans from Bank:

Secured by hypothecation by way of parri-passu charge on the all present and future movable assets of the Company situated at Chopanki,Waluj and Bhiwadi units.

III Term Loans from Others

a) DEG - Deutsche Investitions-und Entwicklungsgesellschaft mbH

Secured by pari-passu first charge on entire fixed assets of the Company, situated at Bhiwadi and Chopanki units and Wind farm at Jaisalmer, all in the state of Rajasthan.

b) G.E. Capital Services India ( In the previous year) Secured by exclusive first charge by way of hypothecation of specific machineries purchased out of the proceeds of the said loan.

2 Miscellaneous Income :

Miscellaneous Income includes Rs.47,79,584 (Previous Year Rs.21,40,506) in respect of refund of Regulatory Liabilities Charges paid in earlier years to Maharashtra State Electricity Board.

3 Extra Ordinary Item in the previous year represents the difference between the actual payment and provision of Rs. 98,00,000 made in earlier year, included along with other expenses incurred , on account of stamp duty payable on transfer of assets of erstwhile Paper and Textiles Processing Divisions of the Company to two separate wholly owned subsidiary Companies.

4 I) Related Party Disclosures *

(Where transactions have taken place)

a) Key Management Personnel (KMP) Mr. Arvind M. Poddar - Managing Director, Mr.Rajiv A. Poddar - Executive Director (w.e.f. 22/01/2009), Mr. Anurag P. Poddar- Executive Director (w.e.f. 22/01/2009), Mr. B.K. Bansal - Director Finance (w.e.f. 26/07/2008), Mr. Trilok Chand Goel - Sr. President cum Director (upto 25/07/2008).

b) Relatives of Key Management Personnel : Mr. Rajiv A.Poddar (upto 21/01/2009).

c) Other Related Parties -(Enterprises-KMP having significant influence/owned by major shareholders) Siyaram Silk Mills Ltd., Govind Rubber Ltd., SPG Infrastructure Ltd., GRL International Ltd., BKT Moulds Limited.

5 a) As at 31st March,2010, there are no Micro, Small and Medium Enterprises, as defined in the Micro, Small, Medium Enterprises Development Act, 2006, to whom the Company owes dues on account of principal amount together with interest and accordingly no additional disclosures have been made.

b) 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. This has been relied upon by the auditors.

6 Foreign Currency Convertible Bonds (FCCB)

a) The Company raised FCCB during the year 2005-06 aggregating to USD 40 million which included:

i) Zero coupon ‘Series A’ bonds aggregating to USD 18 million, convertible at a price of Rs. 1,080 per share by applying a pre-determined exchange rate of Rs. 45.66 per USD and,

ii) 4.5% FCCB ‘Series B’ aggregating to USD 22 million with redemption premium of 1.5% p.a. payable on cumulative basis at the time of redemption i.e. on 31st December 2010, convertible at the option of bondholders at a price of Rs. 1,375 per share by applying a pre-determined exchange rate of Rs. 45.66 per USD. If all these bonds are converted into shares, then the Share Capital of the Company will increase by 7,30,560 Equity Shares of Rs 10 each.

b) The ‘Series A’ bonds, during the year 2005-06 were subsequently converted into equity shares upon exercising the conversion right by the Bondholders.

The Company allotted them 7,60,999 shares of Rs.10 each at a pre-determined premium of Rs. 1,070 each.

7 Derivative Instruments a) Hedging Contracts :

i) The Company uses forward exchange contracts to hedge its exposure to foreign exchanges and the Company does not use such contracts for trading or speculation purpose.

a) Defined Contribution Plans- The Company’s contribution to defined contribution plans aggregating to Rs.2,65,12,602 (Previous Year Rs.1,87,21,509) has been recognised in the statement of profit and loss account under the heading ‘Contribution to Provident and Other Funds’ (Schedule ‘P’ ) .

b) The assumption of future salary increase, considered in actuarial valuation, takes into account of inflation and other relevant factors.

8 a) Figures in brackets in Notes 9,10,11,18, and 20 pertain to Previous Year.

b) The Previous Year figures have been re-arranged and/or regrouped wherever necessary to make them comparable.

Find IFSC