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Notes to Accounts of Beardsell Ltd.

Mar 31, 2015

1. Terms attached to equity shares

The Company has issued only one class of equity shares having a par value of Rs.10/- per share. Each holder of equity share is entitled to one vote per share. The Company declares dividends in Indian Rupees. The dividend proposed by the Board of Directors is subject to the approval of the shareholders at the Annual General Meeting. Repayment of capital will be in proportion to the number of equity shares held.

2. The Rupee term loan from Bank of India are secured by exclusive charge on the entire fixed and current assets of the Company. They are also secured by deposit of the Title Deeds of all its properties except at Thane and Bihar. These term loans are repayable over a period of six years and the floating interest rate is 13.1 0% (P.Y. 11.50% to 12.00%)

3. For current maturities of long term borrowings, refer Item (a) in Note 9- Other Current Liabilities.

4. Hire purchase loans are secured by hypothecation of vehicles acquired out of the loan and are payable over a period of two to four years. For current maturities of hire purchase loans, refer item (b) in Note 9- Other Current Liabilities.

5. The Company has not defaulted in repayment of the loans, public deposits and interest thereon.

6. Working capital facilities from Bank of India are secured by exclusive charge on the entire fixed and current assets of the Company. They are also secured by deposit of the Title Deeds of all its properties except at Thane and Bihar.

7. The company has not defaulted in repayment of the loans, public deposits and interest thereon.

8. Current maturities of long-term debt pertains to secured term loans taken from banks. Refer Note 4.1 under Long-term borrowings for details of security and terms of repayment.

9. Hire purchase loans are secured by hypothecation of vehicles acquired out of the loan.

10. These amounts represent dividend warrants issued to the Shareholders which remained unpresented as on 31st March 2015. There are no amounts due to be transferred to Investor Education and Protection Fund as on 31st March 2015 (P.Y.: Rs. Nil).

11. Of the above, the balances that meet the definition of Cash and cash equivalents as per AS 3 Cash Flow Statements is Rs.269.68 Lakhs (Rs. 440.21 Lakhs)

12. Balances with banks - Other earmarked accounts represent fixed deposits made in pursuance of Rule 3A of the Companies (Acceptance of Deposits) Rules 1975.

13. Contigent Liabilities and Commitments (to the extent not provided for)

As at As at Particulars March 31, 2015 March 31, 2014

(Rs. in Lakhs)

(i) Contingent Liabilities

(a) Claims against the Company not acknowledged as debts 22.77 22.77

(b) Sales tax demands against which the Company has filed appeals and for which no provision is considered necessary as the 608.47 465.93 Company is hopeful of successful outcome in the appeals.

(c) CST demands in respect of which the High Court has pronounced an - 162.13 order quashing the proceedings and redirected the proceedings to the Assessing Officer, as confirmed by the legal counsel.

631.24 650.83

Future cash outflows in respect of the above matters are determinable only on receipt of judgements / decisions pending at various forums / authorities. Nature Amount Payment Period to Name of the statute of dues made which the amount relates Rs. in Lakhs

Sales Tax Acts Sales Tax 45.09 9.67 1995-96 of various states -Local (40.50) (6.07) 2000-01

2001-02

2003-04

2005-06

2006-07

2007-08

2008-09

2009-10 2010-11

Central Sales Sales Tax 563.38 45.65 1995-96 Tax Act, 1956 -CST (587.56) (27.65) 2000-01

2001-02

2003-04

2005-06

2006-07

2007-08

2008-09

2009-10

2010-11

608.47 55.32

(628.06) (33.72)

Forum where Name of the statute dispute is pending

Sales Tax Acts Deputy of various states Commissioner, Assistant Commissioner & other appellate authorities

Central Sales High Court, Tax Act, 1956 Deputy Commissioner & CTO of various states

Note: Figures in bracket relates to the previous year

(ii) Commitments

(a) Estimated amount of contracts remaining to be executed and not 189.48 127.72 provided for in these accounts (net of advances) in respect of purchase of tangible assets.

(b) Commitments towards investments - 48.11

14. Memorandum of Understanding

During the year, the Company has entered into Memorandum of Understanding ("MOU") with an entity effective 01.09.2014 to operate its EPS division. In accordance with the terms of the MOU, the Company has to absorb 50% of the interest costs and share of profits/ losses of this division. Accordingly the Company has absorbed finance costs of this division amounting to Rs.19.62 lakhs and share of losses amounting to Rs.16.16 lakhs.

15. Employee Benefits

A. Defined Contribution Plans

The Company makes Provident Fund, Superannuation Fund and Employee State Insurance Scheme contributions which are defined contribution plans, for qualifying employees. Under the Schemes, the Company is required to contribute a specified percentage of the payroll costs to fund the benefits. The Company recognised Rs.56.69 Lakhs (Year ended 31 March, 2014 Rs.48.39 Lakhs) for Provident Fund contributions, Rs.47.93 Lakhs (Year ended 31 March, 2014 Rs.40.50 Lakhs) for Superannuation Fund contributions and Rs.3.19 Lakhs (Year ended 31 March, 2014 Rs.3.55 Lakhs) for Employee State Insurance Scheme contributions in the Statement of Profit and Loss. The contributions payable to these plans by the Company are at rates specified in the rules of the schemes.

16. Estimate of amount of contribution in the immediate next year: Rs.28.00 Lakhs (P.Y.- Rs.25 Lakhs)

17. The Company has invested the plan assets with the insurer managed funds. The insurance company has invested the plan assets in Government Securities, Debt Funds, Equity shares, Mutual Funds, Money Market Instruments and Time Deposits. The expected rate of return on plan asset is based on expectation of the average long term rate of return expected on investments of the fund during the estimated term of the obligation. The details of experience adjustments arising on account of plan assets and liabilities as required by paragraph 120(n)(ii) of AS 15 (Revised) on "Employee Benefits" are not readily available in the valuation report and hence, are not furnished.

18. As the fair value of the planned assets is more than the liability, an amount of Rs. 17.29 Lakhs (P.Y.- Rs.2.80 Lakhs) has not been recognised in the books on a conservative basis.

19. Segment Information

(a) Primary Segment

The Company has identified business segments as its primary segment. Business segments are primarily insulation and trading. Insulation Business includes manufacturing of EPS Products/ prefabricated panels and related service activities. Trading includes motors, export of fabrics, telemedicine equipments, Information Technology Products etc. The above segments have been identified taking into account the organisation structure as well as differing risks and returns of these segments. Revenues and expenses directly attributable to segments are reported under each reportable segment. Expenses which are not directly identifiable to each reportable segment have been allocated on the basis of associated revenues of the segment and manpower efforts. All other expenses which are not attributable or allocable to segments have been disclosed as unallocable expenses. Assets and liabilities that are directly attributable or allocable to segments are disclosed under each reportable segment. All other assets and liabilities are disclosed as unallocable. The geographical segments of the Company are India and others.

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


Mar 31, 2014

Corporate Information

Beardsell Limited ("the Company") is a prominent manufacturer and supplier of Expanded Polystyrene products, popularly known as thermocole and Prefabricated Buildings that have wide industrial applications. The company also undertakes erection, commissioning and maintenance works in the field of hot and cold insulation solutions. The company has manufacturing facilities in Thane, Chennai, Hyderabad and Karad and branches with geographical spread across India. In addition, the company has trading operations in domestic and international market.

1. Terms attached to equity shares

The Company has issued only one class of equity shares having a par value of Rs.l 0/- per share. Each holder of equity share is entitled to one vote per share. The Company declares dividends in Indian Rupees. The dividend proposed by the Board of Directors is subject to the approval of the shareholders at the Annual General Meeting. Repayment of capital will be in proportion to the number of equity shares held.

2. The Rupee term loan from Bank of India are secured by exclusive charge on the entire fixed and current assets of the Company. They are also secured by deposit of the Title Deeds of all its properties except at Thane. These term loans are repayable over a period of six years and the floating interest rate range from 11.50% to 12.00% (RY. 12.75% to 14.25%)

3. The Company has not defaulted in repayment of the loans, public deposits and interest thereon.

4. For current maturities of long term borrowings, refer Item (a) in Note 9- Other Current Liabilities.

5. Hire purchase loans are secured by hypothecation of vehicles acquired out of the loan and are payable over a period of two to four years. For current maturities of hire purchase loans, refer item (b) in Note 9- Other Current Liabilities.

6. Working capital facilities from Bank of India are secured by exclusive charge on the entire fixed and current assets of the Company. They are also secured by deposit of the Title Deeds of all its properties except at Thane.

7. The company has not defaulted in repayment of the loans, public deposits and interest thereon.

8. In accordance with the Notification No.GSR71 9 (E) dated 16.11.2007 issued by the Ministry of Corporate Affairs, certain disclosures are required to be made relating to Micro and Small Enterprises as defined underthe Micro,Small and Medium Enterprises Development Act, 2006. Since there are no dues to such enterprises, no disclosures are required to be made underthe said Act.

9. Current maturities of long-term debt pertains to secured term loans taken from banks. Refer Note 4.1 under Long-term borrowings for details of security and terms of repayment.

10. Hire purchase loans are secured by hypothecation of vehicles acquired out of the loan.

11. These amounts represent dividend warrants issued to the Shareholders which remained unpresented as on 31 st March 2014. There are no amounts due to be credited to Investor Education and Protection Fund as on 31 st March 2014 (RY.: Rs. Nil).

12. Represents vehicle loans given to employees secured by respective vehicles.

13. Represents amounts paid to Saideep Polytherm, a Partnership firm. A Memorandum of understanding has been executed with the firm on May 7, 2014 for the Company to become a partner in the firm for a total capital contribution of Rs. 112.15 lakhs.

14. Of the above, the balances that meet the definition of Cash and cash equivalents as per AS 3 Cash Flow Statements is Rs.440.21 Lakhs (Rs. 218.11 Lakhs)

15. Balances with banks - Other earmarked accounts represents fixed deposits made in pursuance of Rule 3A of the Companies (Acceptance of Deposits) Rules 1975 .

16. Sales of services comprise of income from erection, commissioning and maintenance of hot and cold insulation solutions.

17. Others include raw materials such as Isocynate, chemicals and wire mesh, none of which individually accounts for more than 10% of the total consumption.

18. Other borrowing cost includes loan processing charges, guarantee charges, loan facilitation charges and other ancillary costs incurred in connection with borrowings.

19. Legal and Professional charges include an amount of Rs.6.00 lakhs (RY.: Rs.6.20 lakhs) paid to a law firm in which one of the directors is a partner.

20 Contigent Liabilities and Commitments (to the extent not provided for)

As at As at Particulars March 31, 2014 March 31,2013 (Rs. in Lakhs)

(i) Contingent Liabilities

(a) Claims against the Company not 22.77 22.77 acknowledged as debts

(b) Sales tax demands against which the Company has filed

appeals and for which no provision 465.93 31 6.85 is considered necessary as the Company is hopeful of successful outcome in the appeals.

(c)CST demands in respect of which the High Court has pronounced an order quashing the 162.13 - proceedings and redirected the proceedings to the Assessing Officer, as confirmed by the legal counsel. 628.06 316.85

Future cash outflows in respect of the above matters are determinable only on receipt of judgements / decisions pending at various forums / authorities.

Payment Period to Name of the statute nature Amount made which the ofdues Rs. in Lakhs amount relates

Sales Tax Acts Sales Tax 40.50 6.07 1995-96 of various states -Local (43.52) (3.70) 1998-99 2000-01 2001-02 2003-04 2005-06 2006-07 2008-09 2009-10

Central Sales Sales Tax 587.56 27.65 1995-96 Tax Act, 1956 -CST (273.33) (12.65) 2000-01 2001-02 2003-04 2005-06 2006-07 2008-09 2009-10 2010-11 628.06 33.72 2011-12 (316.85) (16.35)

Forum where Name of the statute dispute is pending

Sales Tax Acts Deputy of various states Commissioner, Assistant Commissioner & other appellate authorities

Central Sales High Court, Tax Act, 1956 Deputy Commissioner & CTO of various states

Note: Figures in bracket relates to the previous year

(ii) Commitments

(a) Estimated amount of contracts remaining 127.72 62.1 8 to be executed and not provided for in these accounts (net of advances)

in respect of purchase of tangible assets.

(b) Letters of Credit established for - 268.94 purchases of raw materials

(c) Commitments towards investments 48.11 - (Refer Note 13.2)

21 Employee Benefits

A. Defined Contribution Plans

The Company makes Provident Fund, Superannuation Fund and Employee State Insurance Scheme contributions which are defined contribution plans, for qualifying employees. Under the Schemes, the Company is required to contribute a specified percentage of the payroll costs to fund the benefits. The Company recognised Rs.48.39 Lakhs (Year ended 31 March, 2013 Rs.49.43 Lakhs) for Provident Fund contributions, Rs.40.50 Lakhs (Year ended 31 March, 2013 Rs.36.95 Lakhs) for Superannuation Fund contributions and Rs.3.55 Lakhs (Year ended 31 March, 2013 Rs.3.74 Lakhs) for Employee State Insurance Scheme contributions in the Statement of Profit and Loss. The contributions payable to these plans by the Company are at rates specified in the rules of the schemes.

22. Estimate of amount of contribution in the immediate next year: Rs. 25.00 Lakhs (RY.-Nil)

23. The Company has invested the plan assets with the insurer managed funds. The insurance company has invested the plan assets in Government Securities, Debt Funds, Equity shares, Mutual Funds, Money Market Instruments and Time Deposits. The expected rate of return on plan asset is based on expectation of the average long term rate of return expected on investments of the fund during the estimated term of the obligation. The details of experience adjustments arising on account of plan assets and liabilities as required by paragraph 1 20(n)(ii) of AS 15 (Revised) on "Employee Benefits" are not readily available in the valuation report and hence, are not furnished.

24. As the fair value of the planned assets is more than the liability, an amount of Rs. 2.80 Lakhs (RY. - Rs.50.73 Lakhs) has not been recognised in the books on a conservative basis.

25 Segment Information

(a) Primary Segment

The Company has identified business segments as its primary segment. Business segments are primarily insulation and trading, insulation Business includes manufacturing of EPS products / Pre-tabricated panels and related service activities. Trading includes motors, export of fabrics, tele-medicine equipments, Information Technology products etc. The above segments have been identified taking into account the organisation structure as well as differing risks and returns of these segments. Revenues and expenses directly attributable to segments are reported under each reportable segments. Expenses which are not directly identifiable to each reportable segment have been allocated on the basis of associated revenues of the segment and manpower efforts. All other expenses which are not attributable or allocable to the segments have been disclosed as unallocable expenses. Assets and liabilities that are directly attributable or allocable to segments are disclosed under each reportable segment. All other assets and liabilities are disclosed as unallocable. The geographical segments of the Company are India and others.

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


Mar 31, 2013

Corporate Information

Beardsell Limited ("the Company") is a prominent manufacturer and supplier of Expanded Polystyrene products, popularly known as thermocole and Prefabricated Buildings that have wide industrial applications. The company also undertakes erection, commissioning and maintenance works in the field of hot and cold insulation solutions. The company has manufacturing facilities in Thane, Chennai, Hyderabad and Karad and branches with geographical spread across India. In addition, the company has trading operations in domestic and international market.

1.1 Current maturities of long-term debt pertains to secured term loan taken from IDBI Bank Limited. Refer Note 4.1 under Long-term borrowings for details of security and terms of repayment.

1.2 Hire purchase loans are secured by hypothecation of vehicles acquired out of the loan.

1.3 These amounts represent dividend warrants issued to the Shareholders which remained unpresented as on 31st March, 201 3. There are no amounts due to be credited to Investor Education and Protection Fund as on 31 st March 201 3 (RY.: Rs. Nil).

2 Contigent Liabilities and Commitments (to the extent not provided for)

As at As at Particulars March 31, 2013 March 31, 2012 Rs. in Lakhs)

(i) Contingent Liabilities

(a) Claims against the Company not acknowledged as debts 22.77

(b) Sales tax, Income tax and demands against which the 316.85 217.90 Company has filed appeals and for which no provision is considered necessary as the Company is hopeful of successful outcome in the appeals.

Future cash outflows in respect of the above matters are determinable only on receipt of judgments / decisions pending at various forums / authorities.

3 Employee Benefits

A. Defined Contribution Plans

The Company makes Provident Fund, Superannuation Fund and Employee State Insurance Scheme contributions which are defined contribution plans, forqualifying employees. Underthe Schemes, the Company is required to contribute a specified percentage of the payroll costs to fund the benefits. The Company recognised Rs.49.43 Lakhs (Year ended 31 March, 201 2 Rs.46.49 Lakhs) for Provident Fund contributions, Rs.36.95 Lakhs (Year ended 31 March, 201 2 Rs.40.05 Lakhs) for Superannuation Fund contributions and Rs.3.74 Lakhs (Year ended 31 March, 201 2 Rs.3.24 Lakhs) for Employee State Insurance Scheme contributions in the Statement of Profit and Loss. The contributions payable to these plans by the Company are at rates specified in the rules of the schemes.

4.1 Estimate of a mount of contribution in the immediate next year: Rs. Nil (RY- Rs. 23 Lakhs)

4.2 In the absence of detailed information regarding Plan assets which is funded with Life Insurance Corporation of India, the composition of each major category of plan assets, the percentage or amount for each category to the fair value of plan assets has not been disclosed.The details of experience adjustments arising on account of plan assets and liabilities as required by paragraphl 20(n)(ii) of AS 15 (Revised) on "Employee Benefits" are not readily available in the valuation report and hence, are notfurnished.

4.3 As the fair value of the planned assets is more than the liability, an amount of Rs. 50.73 Lakhs (RY- Rs.3.65 Lakhs) has not been recognised in the books on a conservative basis.

5 Segment Information

(a) Primary Segment

The Company has identified business segments as its primary segment. Business segments are primarily insulation and trading. Insulation Business includes manufacturing of EPS Products/ prefabricated panels and related service activities. Trading includes motors, export of fabrics, telemedicine equipments, Information Technology Products etc. The above segments have been identified taking into account the organisation structure as well as differing risks and returns of these segments. Revenues and expenses directly attributable to segments are reported under each reportable segment. Expenses which are not directly identifiable to each reportable segment have been allocated on the basis of associated revenues of the segment and manpower efforts. All other expenses which are not attributable or allocable to segments have been disclosed as unallocable expenses. Assets and liabilities that are directly attributable or allocable to segments are disclosed under each reportable segment. All other assets and liabilities are disclosed as unallocable. The geographical segments of the Company are India and others.

6 Related party transactions (as identified by the management and relied upon by the auditors)

Details of related parties:

(a) Key Management Personnel (KMP) - Mr. BharatAnumolu -Managing Director

- Mr, S.V.Narasimha Rao - Executive Director

(b) Relatives of KMP - Mrs. A. Jayasree- Mother of Managing Director

- Mr. Amrith Anumolu - Brother of Managing Director

- Mr. S Arun (HUF) - HUF, wherein son of Executive Director is the Karta j

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


Mar 31, 2012

Corporate Information

Beardsell Limited ("the Company") is a prominent manufacturer and supplier of Expanded Polystyrene products, popularly known as thermocole and Prefabricated Buildings that have wide industrial applications. Company also undertakes erection, commissioning and maintenance works in the field of hot and cold insulation solutions. The company has own manufacturing facilities in Thane, Chennai and Hyderabad and branches with geographical spread across India. In addition, the company has operations of trading in Motors and Fabrics.

1.1 Terms attached to equity shares

The Company has issued only one class of equity shares having at par value of Rs.10/- per share. Each holder of Equity Share is entitled to one vote per share. The Company declares dividends in Indian Rupees. The dividend proposed by the Board of Directors is subject to the approval of the shareholders at the Annual General Meeting. Repayment of capital on liquidation will be in proportion to the number of equity shares held.

1.2 On October 31, 2011, the Company has allotted 4,00,000 Equity Shares of face value of Rs.10/- each at a premium of Rs.48/- per share to promoters of the Company by conversion of 4,00,000 Fully Convertible Equity Warrants issued on October 27, 2010, vide the approval of members of the Company at the General Meeting held on September 27, 2010. On March 28, 201 2, the Company has further allotted 4,50,000 Equity Shares of face value of Rs. 10/- each at a premium of Rs. 48/- per share to the promoters of the company upon conversion of 4,50,000 Fully Convertible Equity Warrants issued on October 10, 2011, vide the approval of members of the Company at the General Meeting held on September 28, 2011. Consequent to these allotments the Paid-up Share Capital has increased from Rs. 383.32 Lakhs to Rs. 468.32 Lakhs. The premium on such allotments amounting to INR 408.00 Lakhs has been credited to securities premium account.

2.1 The Rupee term loan from IDBI is secured by first charge on the entire fixed assets of the Company excluding specific assets already charged with Bank of India on pari passu basis. They are also secured by deposit of the Title Deeds of one of its property. This term loan is repayable over a period of seven years and the interest rates range from 1 3% to 1 4.25%.

2.2 The company has not defaulted in repayment of the loans, public deposits and interest thereon.

2.3 For current maturities of long term borrowings, refer Item (a) in Note 9 - Other Current Liabilities.

3.1 Working capital facilities from Bank of India are secured by first charge on current assets and charge on specific Fixed Assets of the Company, on pari passu basis, with IDBI Bank Limited in respect of its term loan.

3.2 The company has not defaulted in repayment of the loans, public deposits and interest thereon.

4.1 In accordance with the Notification No.GSR719(E) dated 16.11.2007 issued by the Ministry of Corporate Affairs, certain disclosures are required to be made relating to Micro, Small and Medium Enterprises Act as defined under the Micro, Small and Medium Enterprises Development Act, 2006. Since there are no dues to such enterprises, no disclosures are required to be made under the said Act.

5.1 Current maturities of long-term debt pertains to secured term loan taken from IDBI Bank Limited. Refer Note 4.1 under Long-term borrowings for details of security and terms of repayment.

7.1 Of the above, the balances that meet the definition of cash and cash equivalents as per AS 3 cash flow statements is Rs.208.56 Lakhs (PY. Rs. 243.52 Lakhs)

7.2 Balances with banks - Other earmarked accounts represents fixed deposits made in pursuance of Rule 3A of the Companies (Acceptance of Deposits) Rules, 1 975.

7.3 Balances with banks includes deposits amounting to Rs.10 Lakhs (PY. Rs. 25 Lakhs) which have a maturity of more than 12 months from the Balance Sheet date.

8.1 Sales of services comprise of income from erection, commissioning and maintenance of hot and cold insulation solutions.

9.1 Others include raw materials such as isocynate, chemicals and wire mesh, none of which individually accounts for more than 10% of the total consumption.

10.1 Legal and professional charges include -

(a) An amount of Rs. 2.15 Lakhs paid to a law firm in which one of the directors is a partner. This is subject to approval of share holders in the ensuing general meeting in accordance with provisions of Section 314 and other applicable provisions of the Companies Act, 1 956.

(b) An amount of Rs. 0.80 Lakhs incurred for a Director, in his capacity as a technical advisor. This is subject to the approval of shareholders in the ensuing general meeting in accordance with provisions of Section 314 and other applicable provisions of the Companies Act, 1 956.

11 Segment Information

(a) Primary Segment

The Company has identified business segments as its primary segment. Business segments are primarily insulation and trading. Insulation Business includes manufacturing of EPS Products/ Prefab panels and related service activities. Trading includes motors, exports etc. The above segments have been identified taking into account the organisation structure as well as differing risks and returns of these segments.

(b) Secondary segment

As the sales and assets outside India is less than 10% of total sales/ assets, there are no reportable geographical segments.

12 Related party transactions

Details of related parties:

(a) Key Management Personnel (KMP) - Mr. Bharat Anumolu - Managing Director

- Mr. S.V.Narasimha Rao - Executive Director

(b) Relatives of KMP - Mrs. A. Jayasree- Mother of Managing Director

- Mr. Amrith Anumolu - Brother of Managing Director

- Mr. S Arun (HUF) - HUF, wherein son of Executive Director is the Karta

13 Subsequentevents

On April 4, 2012 the promoters of the Company made an open offer for acquisition of 12,17,624 shares (representing 26% of the total paid up equity share capital) at Rs.58/- per share from public shareholders, in accordance with Securities and Exchange Board of India (Substantial Acquisition of Shares and Takeovers) Regulations, 201 1 and subsequent amendments thereto. The offer opened on June 7, 2012 and closed on June 20, 2012. Holders of 8,55,516 shares have accepted the offer, consequent to which the promoters' shareholding has increased from 57.64% to 75.91%. In order to comply with clause 40A of the Listing agreement, the promoters have sold 44,003 shares in the open market on July 26, 201 2 and July 27, 2012 to reduce their holdings to 74.96%.

14 The Revised Schedule VI has become effective from 1 April, 2011 for the preparation of financial statements. This has significantly impacted 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, 2010

As on As on Mar 31,2010 Mar 31,2009

1.01 Contingent liabilities

(Rs. in Lakhs)

Uncalled Liability in respect of partly paid shares held as investments 0.36 0.36

Claims against the Company not acknowledged as debts 2.00 2.00

Capital Commitments (Net of Advances) 150.99 60.45

Disputed Sales Tax demands 14.04 16.89



Name of the Nature of . Amount Payment statute dues made

Sales tax acts of Sales Tax 6.44 3.85 various States

(9.29) (3.05)

Central Sales Sales Tax 7.60 2.65 Tax Act

(7.60) (2.65)

Name of the Period to which Forum where statute the amt. relates dispute is pending

Sales tax acts of 1982-83tol985-86 Deputy Commissioner various States 1989 - 90 to 1995-96 & Assistant Commissioner 1997-98 & other appellate 1998-99 authorities 2000 - 01 2001 - 02 2003 - 04

Central Sales 1993 - 94 to 1995-96 Deputy Commissioner Tax Act 1997-98 & CTO of various states 2000 - 01 2001 - 02 2003 - 04

1.02 Income tax appeal

An appeal is pending before CIT (Appeals) against the order of the Assessing Officer for the assessment year 2005 - 2006 in respect of disputed tax demand of Rs. 1 1 2.75 lakhs which includes interest of Rs. 20.03 lakhs. The entire amount has been paid. The Company is advised that there are reasonable chances of success in the appeal. Accordingly, no provision is considered necessary.

1.03 Excise duty

Excise duty on sales for the year has been disclosed as reduction from turnover. Excise duty related to the difference between the closing stock and opening stock has been included in Schedule 1 3 forming part of the accounts.

1.04 Working capital facilities

Working capital facilities of the Company are secured by first charge on current assets and charge on specific fixed assets of the Company, on pari passu basis, with IDBI Bank Ltd. in respect of its Term Loan.

1.05 Term loan

Term Loan from IDBI Bank Ltd. is secured by First charge on the entire fixed assets of the Company excluding specific assets already charged with Bank of India on pari passu basis. They are also secured by deposit of Title Deeds of one of its property.

1.06 Deposits from public

(a) Fixed deposits maturing within one year is Rs. 7.98 lakhs (Rs. 1 9.1 1 lakhs).

(b) Fixed deposits under cash and bank balances includes an amount of Rs. 3.00 lakhs (Rs. 3.00 lakhs) deposited in pursuance of Rule 3A of the Companies (Acceptance of Deposits) Rules, 1 975.

1.07 Micro Enterprises & Small Enterprises

In accordance with the Notification No: GSR 71 9 (E) dated 1 6.11.2007 issued by the Ministry of Corporate Affairs, certain disclosures are required to be made relating to micro, small and medium enterprises as defined under the Micro, Small and Medium Development Act, 2006. The Company is in the process of compiling relevant information from its suppliers about their coverage under this Act. Since the relevant information is not readily available, no disclosures have been made in these financial statements.

1.08 Contracts-in-progress

In respect of contracts-in-progress, as on March 31, 201 0, the aggregate cost incurred and the profit recognized is Rs. 225.35 lakhs (Rs. 96.48 lakhs) and Rs. 24.87 lakhs (Rs. 12.95 lakhs) respectively. Advance from contract customers amount to Rs. 1 22.90 lakhs (Rs. 70.39 lakhs). Contracts receivables amount-to Rs.282.30 lakhs (Rs.291.72 lakhs).

1.09 During the year, the Court convened Extra Ordinary General Meeting was held on 9th of September 2009 and the Shareholders have approved the Scheme of Merger of the wholly owned subsidiary Viraat Granites Private Limited with the Company. Necessary petitions have been filed with Honourable High Court of Madras for the sanction of said Scheme, which is pending.

1.10 Other Income includes

- Rs.230.00 Lakhs received on account of Surrender of Tenancy Rights in respect of a property situated at Hyderabad

- Rs.25.03 Lakhs received on account of settlement of Insurance claim relating to Stock made in earlier years and interest of Rsl 0.29 Lakhs forthe delay in settlement.

The Company has considered business segment as the Primary Segment for disclosure.

Insulation Business includes manufacturing of EPS Products/Prefab Panels and related contracting activities.

Trading includes Chemicals, Motors and Exports, etc.

The above Segments have been identified taking into account the organization structure as well as the differing risks and returns of these segments.

(b) Secondary segment

As the sales and assets outside India is less than 1 0% of total sales/assets, there are no reportable geographical segments.

15.14 Related Party Transactions (as identified by the management and relied upon by Auditors)

(a) Subsidiary Company - M/s. Viraat Granites Private Limited

(b) Key management personnel - Mr. Bharat Anumolu - Managing Director (From 29.06.2009)

Mr. S. V. Narasimha Rao - Executive Director (From 29.06.2009)

Mr. A. V Ramalinqan - Executive Director (Till 20.05.2009)

1.11 Prior period comparatives

Prior year figures have been reclassified / re-grouped wherever necessary to conform to the current years classification.


Mar 31, 2000

1. (a) No provision has been made in the accounts towards disputed Income Tax demands under appeal amounting to Rs.58.22 lakhs as the Company is advised that there are reasonable chances of success in the appeal. Hence, no provision is considered necessary as of date.

31 st March 2000 31 st March 1999 (Rs. in lakhs)

(b) Maximum liabilities under guarantees and indemnities given by the Company 40.00 40.00

(c) Contingent liability in respect of

i) Bills/Cheques discounted (since cleared in full) 11.51 12.23

ii) Other matters 32.00 32.00

iii) Suit filed in respect of property held under lease agreement amount not ascertainable.

iv) Uncalled liability in respect of partly paid 0.68 - shares held as investments.

(d) Claims against the company not acknowledged as debts in 74.71 74.21 respect of disputed sales tax demands of Rs.l 18.23 lakhs including Rs.43.52 lakhs stayed by courts. The company is advised that there are reasonable chances of successful outcome of appeals and no provision is considered necessary as of date.

(e) Estimated amount of contracts remaining to be executed on Capital Account and not provided for 11.53 4.25

(f) i) The Companys EPS Factory at Velappanchavadi, Chennai ceased to work due to labour unrest resulting in the termination of the employment of the workers in the factory with effect from 06.01.98. The conciliation proceedings are in progress. As the entry into the factory was prevented by the workers, the figures relating to value of assets and liabilities at the factory have been estimated based on the records and informations available after writing down appropriate amount for deterioration in quality of stocks and stores and these have been considered in the preparation of the accounts. However, no provision has been made in the accounts for liability, if any, arising out of termination of the employment of the workers as the amount is not ascertainable.

ii) Majority of the retrenched workers of EPS Thane factor/ have filed a case in the Labour Court against retrenchment which is pending. No provision has been made in the accounts towards liability if any, arising out of retrenchments as the amount is not ascertainable.

(g) No Provision has been made in the accounts towards gratuity liability of retrenched employees who have not accepted the settlement amounting to Rs.30.30 lakhs and this will be accounted on payment basis as and when claimed by the employees.

2. Pursuant to the Partnership Agreement entered into between the Company and Mettur Textiles Private Limited on Nth December 1 982, the Company brought into Common Stock of the partnership firm "Mettur Textiles" all assets and liabilities of its Textile and Thread Division with effect from 1 st January 1 983. Based on the Supplemental partnership Agreement entered into between the Company, Mettur Textiles Private Limited and Rukmini Investments Private Limited dated 3rd March 1983, Rukmini Investments Private Limited, became a Partner in the firm "Mettur Textiles" and the Company retired from the Partnership with effect from 28th February 1 983. The Profit/Loss of Mettur Textiles for the two months ended 28th February 1 983 has not yet been ascertained and hence not been dealt with in the accounts of the Company. A sum of Rs.56.88 lakhs is due from Mettur Textiles Private Limited and Rukmini Investments Private Limited after adjustment of the claims made by them. Suits have been filed for the recovery of the amount.

3. (a) Packing Credit and Cash Credit loans are secured by:

i) Hypothecation of stocks of Raw Materials, Work-in-Progress, Finished Goods, Stores and Spares, Trading Stocks and Book debts belonging to the Company.

ii) Second charge on all block assets to cover the entire working capital facilities of the Company.

(b) (i) Term Loans from Industrial Development Bank of India and Others are secured by hypothecation of machinery acquired from the loans.

(ii) Instalments falling due within one year Rs. 140.29 lakhs (1 999 : Rs. 1 71.78 lakhs).

(iii) Fixed Deposits maturing within one year is Rs. 117.22 lakhs. (1999 : Rs. 232.09 lakhs).

(c) Term Loans from Industrial Investment Bank of India Ltd., Industrial Development Bank of India are secured by First pari passu charge on the Fixed Assets of the Company excluding machinery bought out of loans from institutions and others. The Debentures issued in February 1991 have been fully redeemed during the year. Term Loans from Industrial Investment Bank of India Limited and Industrial Development Bank of India are guaranteed by two Directors.

4. Intercorporate Deposit for Rs.30.00 lakhs and Hire purchase instalments for Rs.3.41 lakhs have been guaranteed by Chairman and Managing Director.

5. In respect of long term Investments in Shin-Ho-Petro Chemical (I) Ltd., no provision is considered necessary for the diminution in the value as steps taken for the rejuvenation of the company have yielded results.

6. Pursuant to Note 1 (D) Excise Duty payable on finished goods held at the factories amounting to Rs.4.47 lakhs (1999 : Rs.6.27 lakhs) have been debited to expenditure and included in stock valuation. However, this accounting treatment has no impact on the loss for the year.

7. Letters have been sent to parties having debit/credit balances requesting them to confirm the balances due by/to them and replies have been received only from some of the parties.

8. Fixed deposits under cash and bank balances represent amount deposited in pursuance of Rule 3 A of the Companies (Acceptance of Deposits) Rules 1975.

9. Loans and advances include:

(i) Due by a Private Limited Company in which a Director of this Company is a Director / Member Rs.Ni! (1999 : Rs. 0.16 lakhs).

(ii) Due by an officer of the Company Rs.2.88 lakhs (1999 : Rs. 3.04 lakhs). Maximum amount due at any time during the year Rs.3.19 lakhs. (1999 : Rs. 3.10 lakhs)

10. Comparative figures for the previous year have been reclassified wherever necessary to conform to this years classification.

 
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