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Notes to Accounts of Banco Products (India) Ltd.

Mar 31, 2015

1) Corporate information

Banco Products (India) Limited is a public company domiciled in India and incorporated under the Companies Act, 1956. Equity shares of the company are listed on two stock exchanges in India. The Company is engaged in manufacturing and selling of radiators. The company caters to both domestic and international market.

1.2 Terms/rights attached to each equity share

The company has only one class of share referred to as equity share having a par value of Rs. 2 per share. Each holder of equity share is entitiled to one vote per share. The company declares and pays dividend in Indian rupees. Payment of dividend is also made in foreign currency to shareholders outside India. The dividend proposed by the board of directors is subject to approval of the shareholders in the ensuring annual general meeting. In the unlikely event of the liquidation of the company the equity shareholders are eligible to receive the residual value of the assets of the company if any after secured and unsecured creditors of the company are paid off, in the proprortion of their shareholding in the company.

2. Segment Information

The company has identified manufacturing of automobile components as its sole primary segment. Thus, the disclosure requirements as set out in Accounting Standard 17 (AS-17) "Segment Reporting" are not applicable.

3. Contingent liabilities.

31st March 2015 31st March 2014 Rs. In lacs Rs. In lacs

- Service tax and excise duty demand 396.83 329.64

- Sales tax 219.64 119.72

- Letter of credit outstanding 178.16 234.90

- Counter guarantees given to the banks in respect of various Guarantees issued by the banks to third parties 550.08 1762.09

The company is contesting the demands and the management, including its tax advisor, believes that its position is likely to be upheld in the appellate process. No tax expenses have been accrued in the financial statements for the demands raised as above. The management believes that the ultimate outcome of this proceeding will not have a material adverse effect on the company's financial position and result of operations.

4. Capital and other commitments

Estimated amount of contracts remaining to be executed on capital account not provided for Rs. 941.31 Lacs (31st March 2014, Rs. 1,127.12 Lacs).

5. Related party disclosures

Name of related parties and related party relationship

A. Related parties where control exists

I. Subsidiary companies

(read with clause 32 of the listing agreement)

Banco Gaskets (India) Limited - 100%

Lake Mineral (Mauritius) Limited- 100% Nederlandse Radiateuren Fabriek Ltd-100%

II. Indirect subsidiary company

(read with clause 32 of the listing agreement)

Kilimanjaro Biochem Limited

B. Key Management Personnel

Shri Mehul K.Patel- Chairman

Mrs. Himali H. Patel- Whole Time Director and CFO

(with effect from 13th Feb. 2015)

Shri Shailesh Thakker (Upto 23rd Sept. 2014) Shri Kiran Shetty- Executive Director Shri Dinesh Kavthekar- Company Secretary (upto 30th Sep. 2014)

Shri Deep Vaghela- Company Secretary (with effect from 13th Feb. 2015)

C. Company in which certain directors are common Banco Aluminium Limited

6. As far as balances of trade payables and trade receivables are concerned, the company has done reconciliation with major parties, pending formal confirmation.

7. In compliance with the Accounting Standard (AS-2) as per accounting standard rules. The company has included excise duty on closing stock of finished goods amounting to Rs. 118.66 Lacs (31st March 2014, Rs. 83.15 Lacs) and the same has been claimed as expenditure. However this charge has no impact on the profit of the company for the year under review.

8. Maximum balance due during the year from Banco Aluminum Ltd, a company in which some of the directors are common, is Rs. 56.14 Lacs (31st March 2014, Rs. 98.14 Lacs)

9. In compliance with Accounting Standard 22 (AS-22) "Accounting for Taxes on Income", the Company has recognized deferred tax liability (net of assets) arising on account of timing differences, being the difference between the taxable income and accounting income, that originates in one period and is capable of reversal in one or more subsequent period(s).

10. Legal and professional charges include Rs. Nil Lacs (previous year Rs. 5.00 Lacs) paid to Shah and Associates, wherein some of the partners of the auditors are interested.

11. In the opinion of the management, there are no indications, internal or external which could have the effect of impairment of the assets of the Company to any material extent as at the Balance Sheet date, which requires recognition in terms of Accounting Standard 28 (AS-28) on "Impairment of Assets".

12. The company has revised the depreciation rates based on the useful life of its various fixed assets as prescribed in Part-C of Schedule II to the Companies Act, 2013. As a result, depreciation for the year ended 31st March, 2015 is higher by Rs. 220 lacs. Similarly, in case of fixed assets whose useful life has already been completed as on 1st April, 2014, the carrying value (net of residual value) of those fixed assets amounting to Rs. 43.12 (net of deferred tax Rs. 22.21 lacs) have been debited to the opening balance of General Reserve.

13. Previous year's figures have been regrouped and reclassified wherever necessary to be in conformity with the figures of the current year.


Mar 31, 2014

1) Corporate information

Banco Products (India) Limited is a public company domiciled in India and incorporated under the Companies Act, 1956. Equity shares of the company are listed on two stock exchanges in India. The Company is engaged in manufacturing and selling of radiators. The company caters to both domestic and international market.

2. Terms/rights attached to each equity share

The company has only one class of share referred to as equity share having a par value of Rs. 2 per share. Each holder of equity share is entitiled to one vote per share. The company declares and pays dividend in Indian rupees. Payment of dividend is also made in foreign currency to shareholders outside India. The dividend proposed by the board of directors is subject to approval of the shareholders in the ensuring annual general meeting. In the unlikely event of the liquidation of the company the equity shareholders are eligible to receive the residual value of the assets of the company if any after secured and unsecured creditors of the company are paid off, in the proprortion of their shareholding in the company.

# Foreign currency term loan carries interest@ 3M LIBOR plus 2%. The loan is repayable within 4 years on quarterly installments. The loan is secured by hypothecation of specific movable assets of the company by way of first charge.

# Indian rupees term loan outstanding of Rs. 500 lacs from bank carries interest base rate plus 105 bps p.a. The loan is repayable within 2 years on quaraterly installments, from the date of loan, viz. 30th January 2013.The loan is secured by hypothecation of specific movable assets of the company by way of first charge.

# Indian rupees term loan outstanding of Rs.104.00 Lacs from bank carries interest base rate plus 100 bps p.a. The Loan is repayable within 5 years including moratorium of 12 months from the date of 1st disbursement with repayment in 16 equal quarterly installments thereafter. The loan is secured 1st Exclusive charge on specific Plant & Machinery of the company.

3. Segment Information

The company has identified manufacturing of automobile components as its sole primary segment. Thus, the disclosure requirements as set out in Accounting Standard 17 (AS-17) "Segment Reporting" are not applicable.

4. Contingent liabilities.

31st March 2014 31st March 2013 Rs. In lacs Rs. In lacs

-Service tax and excise duty demand 329.64 261.44

-Sales tax 41.38 48.06

-Letter of credit outstanding 234.90 125.54

-Counter guarantees given to the banks in respect of various

Guarantees issued by the banks to third parties 1,762.09 2861.16

-Claims from employees and former employees amount uncertainable - -

-Other claims against the company not acknowledged as debts amount uncertainable - -

The company is contesting the demands and the management, including its tax advisor, believes that its position is likely to be upheld in the appellate process. No tax expenses have been accrued in the financial statements for the demands raised as above. The management believes that the ultimate outcome of this proceeding will not have a material adverse effect on the company's financial position and result of operations.

5. Related party disclosures

Name of related parties and related party relationship

Related parties where control exists

a. Subsidiary companies Banco Gaskets (India) (read with clause 32 of the listing Limited-100% Lake Mineral agreement) (Mauritius) Limited-100% Nederlandse Radiateuren Fabriek B.V.-100%

b. Indirect subsidiary company Kilimanjaro Biochem Limited (read with clause 32 of the listing agreement)

c. Company under common control Banco Aluminium Limited

d. Key Management Personnel Shri Vimal K.Patel- Chairman and Whole Time Director Shri Mehul K.Patel- Vice chairman and Managing Director Shri Shailesh A.Thakker- Executive Director and Chief Financial Officer Shri Kiran Shetty- Executive Director

e. Relatives of Directors Mrs. Hasumatiben K.Patel Mr. Kush V.Patel Mrs. Pritty V.Patel

6. As far as balances of trade payables and trade receivables are concerned, the company has done reconciliation with major parties, pending formal confirmation.

7. In compliance with the Accounting Standard (AS-2) issued by the Institute of Chartered Accountants of India, the company has included excise duty on closing stock of finished goods amounting to Rs. 83.15 Lacs (31st March 2013, Rs. 103.63 Lacs) and the same has been claimed as expenditure. However this charge has no impact on the profit of the company for the year under review.

8. In compliance with Accounting Standard 22 (AS-22) "Accounting for Taxes on Income", the Company has recognized deferred tax liability (net of assets) arising on account of timing differences, being the difference between the taxable income and accounting income, that originates in one period and is capable of reversal in one or more subsequent period(s).

9. Legal and professional charges include Rs. 5.00 Lacs (P.Y. Rs. 2.50 Lacs) paid to Shah and Associates, wherein some of the partners of the auditors are interested.

10. In the opinion of the management, there are no indications, internal or external which could have the effect of impairment of the assets of the Company to any material extent as at the Balance Sheet date, which requires recognition in terms of Accounting Standard 28 (AS-28) on "Impairment of Assets".

11. The contribution to the equity capital of Lake Cements limited is in the nature of investment.

12. Pursuant to the accounting standard AS-19 Lease, the following information is given.

a) The company has given on lease its Dabhasa properties to an associate company for a period of 12 months. The lease rent is payable monthly in advance.

b) Future lease rent receivable as at 31st March 2014 as per the lease agreement

13. The Ministry of Corporate Affairs, Government of India, vide general circular No. 2 and 3 dated 8th February 2011 and 21st February 2011 respectively has granted a general exemption from compliance with section 212 of the Companies Act, 1956, subject to fulfillment of conditions stipulated in the circular. The Company has satisfied the conditions stipulated in the circular and hence is entitled to the exemption. Necessary information relating to the subsidiaries has been included in the Consolidated Financial Statements.

14. Previous year's figures have been regrouped and reclassified wherever necessary to be in conformity with the figures of the current year.


Mar 31, 2013

1) Corporate information

Banco Products (India) Limited is a public company domiciled in India and incorporated under the Companies Act, 1956. Equity shares of the company are listed on two stock exchanges in India. The Company is engaged in manufacturing and selling of radiators. The company caters to both domestic and international market.

2. Discontinuing operation:-

The company had transferred the Gasket Manufacturing Division/Unit having its manufacturing facility at Anakhi by way of slump sale to Banco Gaskets (India) Limited (BGIL), a wholly owned subsidiary of the company as per agreement dated 31.03.2012 with effect from 31.03.2012 for a consideration of Rs.4600 lacs.

3. Segment Information

The company has identified manufacturing of automobile components as its sole primary segment. Thus, the disclosure requirements as set out in Accounting Standard 17 (AS-17) "Segment Reporting" are not applicable.

4. Contingent liabilities.

31" March 2013 31" March 2012 Rs. in lacs Rs. in lacs

Service tax and excise duty demand 261.44 541.64

- Sales tax 48.06 24.96

Letter of credit outstanding 125.54 754.68

Counter guarantees given to the banks in respect of various

Guarantees issued by the banks to third parties 2,861.16 2,481.13

Claims from employees and former employees amount uncertainable

Other claims against the company not acknowledged as debts amount uncertainable

The company is contesting the demands and the management, including its tax advisor, believes that its position is likely to be upheld in the appellate process. No tax expenses have been accrued in the financial statements for the demands raised as above. The management believes that the ultimate outcome of this proceeding will not have a material adverse effect on the company''s financial position and result of operations.

5. Related party disclosures

Name of related parties and related party relationship Related parties where control exists

1. Subsidiary companies Banco Gaskets (India) limited - 100% (read with clause 32 of the listing agreement) Lake Mjnera| (Mauritius) Limjted. 100o/o

Nederlandse Radiateuren Fabriek Ltd-100%

2. Indirect subsidiary company Kilimanjaro Biochem Limited (read with clause 32 of the listing agreement)

3. Associates- under common control Banco Aluminium Limited

4. Key Management Personnel Shri Vimal K.Patel- Chairman and Whole Time Director

Shri Mehul K.Patel- Vice chairman and Managing Director Shri Shailesh A. Thakker- Executive Director and CFO Shri Kiran Shetty- Executive Director

5. Relatives of Directors Mrs. Hasumatiben K.Patel

Mr. Kush V.Patel Mrs. Pritty V.Patel

6. Capital and other commitments

Estimated amount of contracts remaining to be executed on capital account not provided for Rs. 545.33 Lacs (31st March 2012, Rs.212.52 Lacs).

7. As far as balances of trade payables and trade receivables are concerned, the company has done reconciliation with major parties, pending formal confirmation.

8. In compliance with the Accounting Standard (AS-2) issued by the Institute of Chartered Accountants of India, the company has included excise duty on closing stock of finished goods amounting to Rs. 103.63 Lacs (31st March 2012, Rs. 67.65 Lacs) and the same has been claimed as expenditure. However this charge has no impact on the profit of the company for the year under review.

9. Capitalisation of expenditure

During the year, the company has capitalised the following expenses of revenue nature to Capital Work-in- Progress (CWIP). Consequently, expenses disclosed under respective notes are net of amount capitalised by the Company.

10. Maximum balance due during the year from Banco Aluminum Ltd, a company under the same management, is Rs. 143.02 Lacs (31s1 March 2012, f 91.41 Lacs)

11. In compliance with Accounting Standard 22 (AS-22) "Accounting for Taxes on Income", the Company has recognised deferred tax liability (net of assets) arising on account of timing differences, being the difference between the taxable income and accounting income, that originates in one period and is capable of reversal in one or more subsequent period(s).

12. Legal and professional charges include Rs.2.50 Lacs (Previous Year Rs.2.00 Lacs) paid to Shah and Associates, wherein some of the partners of the auditors are interested.

13. In the opinion of the management, there are no indications, internal or external which could have the effect of impairment of the assets of the Company to any material extent as at the Balance Sheet date, which requires recognition in terms of Accounting Standard 28 (AS-28) on "Impairment of Assets".

14. Remittance in foreign currency on account of dividend to non-resident shareholders. The details of dividend paid in respect of shares held by non-residents on repatriation basis are as under:

15. Derivative contracts entered into by the company during the year Rs.Nil (Previous year Rs.394.08 lacs) and outstanding as on 31st March, 2013 Rs. Nil (Rs. Nil, 31st March 2012)

16. The contribution to the equity capital of Lake Cement Limited is in the nature of investment.

17. The company has revalued certain assets of its Bhaili Unit which has been transferred to its SEZ Unit as per requirement of domestic transfer pricing under section 92E- 92F of the Income Tax Act 1961 .The difference of Rs. 40.63 lacs , between book value of assets of Bhaili Unit and fair value of equipments as per valuation report, has been transferred to revaluation reserve.

18. Pursuant to the accounting standard AS- 19 Lease, the following information is given.

a) The company has given on lease its Dabhasa properties to an associate company for a period of 12 months. The lease rent is payable monthly in advance.

b) Future lease rent receivable as at 31st March 2013 as per the lease agreement

19. The Ministry of Corporate Affairs, Government of India, vide general circular No. 2 and 3 dated 8th February 2011 and 21st February 2011 respectively has granted a general exemption from compliance with section 212 of the Companies Act, 1956, subject to fulfillment of conditions stipulated in the circular. The Company has satisfied the conditions stipulated in the circular and hence is entitled to the exemption. Necessary information relating to the subsidiaries has been included in the Consolidated Financial Statements.

20. Previous year''s figures have been regrouped and reclassified wherever necessary to be in conformity with the figures of the current year.


Mar 31, 2012

1) Corporate Information

Banco Products (India) Limited is a public company domiciled in India and incorporated under the Companies Act, 1956. Equity shares of the company are listed on two stock exchanges in India. The Company is engaged in manufacturing and selling of radiators and gaskets. The company caters to both domestic and international market.

2) Basis of Accounting

i) The financial statements have been prepared under the historical cost convention (except for certain fixed assets, which have been revalued) in accordance with the generally accepted accounting principles to comply with the applicable Accounting Standards as prescribed under the Companies (Accounting Standards) Rules, 2006 and the relevant provisions of the Companies Act, 1956.

ii) The Company generally follows the mercantile system of accounting and recognises significant items of income and expenditure on accrual basis.

iii) Use of estimates: The preparation of financial statements in conformity with generally accepted accounting principles in India requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent liabilities at the date of the financial statements.

Terms / rights attached to equity shares

The company has only one class of equity shares having par value of Rs 2 per share. Each holder of equity shares is entitled to one vote per share. The Company declares and pays dividend in Indian rupees. The dividend proposed by the Board of directors is subject to approval of the shareholders in the ensuing Annual General Meeting.

3) Discontinuing Operation

a The Company has transferred the Gasket Manufacturing Division/Unit having its Manufacturing Facility at Anakhi by way of Slump Sale to Banco Gaskets (India) Limited (BGIL), a wholly owned subsidiary of the Company as per agreement dated 31.03.2012 with effect from 31.03.2012 for a consideration of Rs 4600 Lacs as a result of which the current year's figures of Assets & Liabilities are not strictly comparable with that of the previous year.

4) Segment Information

The Company has identified manufacturing of automobile components as its sole primary segment. Thus, the disclosure requirements as set out in Accounting Standard 17 (AS-17) "Segment Reporting" are not applicable.

5) Capital and other commitments

Estimated amount of contracts remaining to be executed on capital account not provided for Rs 212.52 Lacs (P.Y. Rs 1,064.38 Lacs).

6) Contingent Liabilities

a. Counter guarantees given to the banks in respect of various guarantees issued by the banks to third parties Rs 2481.13 Lacs (Previous Year Rs 40.33 Lacs).

b. Letter of credit opened and outstanding Rs 754.68 Lacs (P. Y. Rs 368.86 Lacs).

c. Other claims against the Company not acknowledged as debts amount unascertainable.

d. Claims from employees and former employees amount unascertainable.

e. Disputed tax liabilities:

i) Excise Duty and Service Tax Rs 541.64 Lacs (P. Y. Rs 203.73 Lacs).

ii) Income Tax Rs 75.37 Lacs (P. Y. Rs 1.19 Lacs).

iii) Sales Tax Rs 24.96 (P. Y. Nil).

7) As far as balances of Trade Payables & Trade Receivables are concerned, the Company has done reconciliation with major parties, pending formal confirmation.

8) In compliance with the Accounting Standard (AS-2) issued by the Institute of Chartered Accountants of India (ICAI), the Company has included excise duty on closing stock of finished goods amounting to Rs 67.65 Lacs (Previous Year Rs 50.06 Lacs) and the same has been claimed as expenditure. However this charge has no impact on the profit of the Company for the year under review.

9) Maximum balance due during the year from Banco Aluminum Ltd, a company under the same management, is Rs 91.41 Lacs (P.Y. Rs 7.26 Lacs)

The amount of further interest remaining due and payable even in the succeeding years, until such date when the interest dues as above are actually paid to the small enterprise for the purpose of disallowance.

10) In compliance with Accounting Standard 22 (AS-22) "Accounting for Taxes on Income", the Company has recognized deferred tax liability (net of assets) arising on account of timing differences, being the difference between the taxable income and accounting income, that originates in one period and is capable of reversal in one or more subsequent period(s).

11) Legal & professional charges include 72.00 Lacs (Previous Year Rs 1.50 Lacs) paid to Shah & Associates, wherein some of the partners of the auditors are interested.

12) In the opinion of the management, there are no indications, internal or external which could have the effect of impairment of the assets of the Company to any material extent as at the Balance Sheet date, which requires recognition in terms of Accounting Standard 28 (AS-28) on "Impairment of Assets".

13) The contribution to the Equity Capital of Lake Cements Limited is in the nature of investment.

14) Previous years figures have been regrouped and reclassified wherever necessary to be in conformity with the figures of the current year which is as per Revised schedule VI.

Note

1 Foreign currency term loan carries interest @ 3 M LIBOR plus 2%. The loan is repayable within 3 years on quarterly installments. The loan is secured hypothecation of all movable assets of the Company by way of First Charge.

2 8.25% Unsecured OFCD of USD 15 Lacs carries interest of 8.25% P.A.payable annually on 31st March from the date of its allotment till conversion

3 CITI Bank loan of USD 50 Lacs carries interest @ 3 M LIBOR plus 2%. The loan is repayable within three years on quarterly installments.


Mar 31, 2011

1) Estimated amount of contracts remaining to be executed on capital account not provided for Rs. 1,064.38 Lacs (Previous year Rs. 724.98 Lacs).

2) Contingent Liabilities:

(a) Counter guarantees given to the banks in respect of various guarantees issued by the banks to third parties Rs. 40.33 Lacs (Previous year Rs. 92.74 Lacs).

(b) Letter of credit opened and outstanding Rs. 368.86 Lacs (Previous year Rs. 429.15 Lacs).

(c) Other claims against the Company not acknowledged as debts amount unascertainable.

(d) Claims from employees and former employees amount unascertainable.

(e) Disputed tax liabilities:

i) Excise Duty and Service Tax Rs. 203.73 Lacs (Previous year Rs. 193.93 Lacs).

ii) Income-tax Rs. 1.19 Lacs (Previous Year Rs. 38.06 Lacs).

3) As far as balances of creditors are concerned the Company has obtained the balance confirmations on perpetual, basis from most of the suppliers including all major suppliers. While in case of Debtors, reconciliation with major parties is done pending formal confirmation.

4) In compliance with the Accounting Standard-2 (AS-2) issued by the Institute of Chartered Accountants of India (ICAI), the Company has included excise duty on closing stock of finished goods amounting to Rs. 50.06 Lacs (Previous Year Rs. 34.80 Lacs) and the same has been claimed as expenditure. However this charge has no impact on the profit of the Company for the year under review.

5) Maximum balance due during the year from Banco Aluminum Ltd, a company under the same management, is Rs. 7.26 Lacs (Previous year Rs. 3.24 Lacs)

6) Based on the information available with the Company and relied upon by the auditors, the disclosure requirement as prescribed under the Micro, Small & Medium Enterprises Development (MSMED) Act, 2006 is as under:

7) In compliance with Accounting Standard 22 (AS-22) "Accounting for Taxes on Income", the Company has recognized deferred tax liability (net of assets) arising on account of timing differences, being the difference between the taxable income and accounting income, that originates in one period and is capable of reversal in one or more subsequent period(s).

8) The Company has identified manufacturing of automobile components as its sole primary segment. Thus the disclosure requirements as set out in Accounting Standard 17 (AS-17) "Segment Reporting" are not applicable.

9) Legal & professional charges include * 1.50 Lacs (Previous Year 0.50 Lacs) paid to Shah & Associates, wherein some of the partners of the auditors are interested.

10) In the opinion of the management, there are no indications, internal or external which could have the effect of impairment of the assets of the Company to any material extent as at the balance sheet date, which requires recognition in terms of Accounting Standard 28 (AS-28) on "Impairment of Assets".

11) Additional information pursuant to the provision of Para 3 & 4, in part II of Schedule VI to the Companies Act, 1956 (as certified by the management)

12) Previous years figures have been regrouped and reclassified wherever necessary to be in conformity with the figures of the current year.


Mar 31, 2010

1) Estimated amount of contracts remaining to be executed on capital account not provided for Rs. 724.98 Lacs (Previous year Rs. 289.43 Lacs).

2) Contingent Liabilities:

(a) Counter guarantees given to the banks in respect of various guarantees issued by the banks to third parties Rs. 92.74 Lacs (Previous year Rs. 104.99 Lacs).

(b) Letter of credit opened and outstanding Rs. 429.15 Lacs (Previous year Rs. 34.00 Lacs).

(c) Claims from one of the customers against the Company not acknowledged as debt Rs. 22.66 Lacs (Previous year Rs. 22.66 Lacs).

(d) Other claims against the Company not acknowledged as debts amount unascertainable.

(e) Claims from employees and former employees amount unascertainable.

(f) Disputed tax liabilities:

i) Excise Duty and Service Tax Rs. 193.93 Lacs (Previous year Rs. 193.53 Lacs).

ii) Income-tax Rs. 38.06 Lacs (Previous Year Rs. 13.11 Lacs).

3) As far as balances of creditors are concerned the Company has obtained the balance confirmations on perpetual basis from most of the suppliers including all major suppliers. While in case of Debtors, reconciliation with major parties are done, pending however formal confirmation.

ii) The above remuneration does not include contribution to gratuity fund and leave encashment, as this contribution is a lumpsum amount based on actuarial valuation.

iii) The computation of net profit under section 349 of the Companies Act, 1956 for the purpose of directors remuneration has not been enumerated since no commission has been paid to any of the directors of the Company.

4) In compliance with the Accounting Standard (AS-2) issued by the Institute of Chartered Accountants of India (ICAI), the Company has included excise duty on closing stock of finished goods amounting to Rs. 34.80 Lacs (Previous Year Rs. 81.25 Lacs) and the same has been claimed as expenditure. However this charge has no impact on the profit of the Company for the year under review.

5) Maximum balance due during the year from Banco Aluminum Ltd. a company under the same management, is Rs. 3.24 Lacs (Previous year Rs. 31.79 Lacs)

6) In compliance with Accounting Standard 22 (AS-22) "Accounting for Taxes on Income", the Company has recognized deferred tax liability (net of assets) arising on account of timing differences, being the difference between the taxable income and accounting income, that originates in one period and is capable of reversal in one or more subsequent period(s).

7) The Company has identified manufacturing of automobile components as its sole primary segment. Thus the disclosure requirements as set out in Accounting Standard 17 (AS-17) "Segment Reporting" are not applicable.

8) Legal & professional charges include Rs. 0.50 Lac (Previous year Rs. Nil) paid to Shah & Associates, wherein some of the partners of Auditors are interested.

9) In the opinion of the management, there are no indications, internal or external which could have the effect of impairment of the assets of the Company to any material extent as at the balance sheet date, which requires recognition in terms of Accounting Standard 28 (AS-28) on "Impairment of Assets".

10) Additional information pursuant to the provision of Para 3 & 4, in part II of Schedule VI to the Companies Act, 1956 (as certified by the management)

Notes:

a. As the Company does not come under the purview of the Industries (Development and Regulation) Act 1951, it is not considered necessary to furnish the licensed capacity.

b. Number of items contained in the set is taken as ONE.

c. Sales quantity includes destruction, free supply as samples etc. Major of CFJS productions are used as captive consumption.

11) Previous years figures have been regrouped and reclassified wherever necessary to be in conformity with the figures of the current year.

 
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