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Notes to Accounts of Bhansali Engineering Polymers Ltd.

Mar 31, 2023

29 LEASES

Operating Lease

The leasing arrangements are in most cases renewable by mutual consent, on mutually agreeable terms.

The Companyâs significant leasing arrangements are mainly in respect of residential and office premises. The aggregate lease rentals payable on these leasing arrangements are charged as rent under âOther Expensesâ.

30 CONTINGENT LIABILITIES & CAPITAL COMMITMENTS (? in lakhs)
Particulars	As at 31^st March, 2023	As at 31^st March, 2022
Claims against the Company not acknowledged as debts i. Estimated amount of contracts remaining to be executed on capital accounts and not provided for (net of advances). ii. Income tax demand under appeal Total
	-	4.38
	71.53	71.53
	71.53	75.91

31 LOANS & ADVANCES

The Company has granted Unsecured loans to Companies, Firms, Limited Liability Partnerships and various other parties other than those covered under Section 185 of the Act. The aggregate amount of Loans given during the year is ''18,470.39 lakhs and balance outstanding at the Balance sheet date is '' 30,227.62 lakhs (PY '' 25,902.22 lakhs).

32 According to the information available with the Management, on the basis of intimation received from suppliers regarding their status under the Micro, Small and Medium Enterprises Development Act, 2006 (MSMED Act), the Company has amounts due to micro and small enterprises under the said Act as at 31^st March, 2023 as follows:

(? in lakhs)
Particulars	As at 31^st March, 2023	As at 31^st March, 2022
Principle Amount Not Due Interest due on above Amount of interest paid in terms of Section 16 of the MSME Act, 2006 Amount of interest due and payable for the period of delay Amount of interest accrued and remaining unpaid as at year end Amount of further interest remaining due and payable in the succeeding year	80.59	143.24
	-	-
	-	-
	-	-
	-	-
	-	-

37 SEGMENT REPORTING

The Company manufactures and sells ABS and SAN and Trading in Styrene which belong to the same product group i.e. âHighly Specialized Engineering Thermoplasticsâ alongwith Trading in raw materials used for manufacturing ABS and SAN. The product has the same risks and returns, which are predominantly governed by market conditions, namely demand and supply position. Thus, in the context of Indian Accounting Standard - 108 âSegment Reportingâ, issued by the Institute of Chartered Accountants of India, there is only one identified reportable segment.

38 CAPITAL MANAGEMENT

The Company manages its capital structure and makes adjustments to it, in light of changes in economic conditions and the requirements of the financial covenants. To maintain or adjust the capital structure, the Company may adjust the dividend payment to shareholders, return capital to shareholders or issue new shares. The current capital structure of the Company is equity based with no financing through borrowings. The Company is not subject to any externally imposed capital requirement.

No changes were made in the objectives, policies or processes during the year ended 31^st March, 2023 and 31^st March, 2022 respectively.

39 FAIR VALUE DISCLOSURES

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

The categories used are as follows:

â¢ Level 1: This hierarchy includes financial instruments measured using quoted prices. This includes listed equity instruments, traded bonds, ETFs and mutual funds that have quoted price. ;

â¢ Level 2: The fair value of financial instruments that are not traded in an active market is determined using valuation techniques which maximize the use of observable market data and rely as little as possible on entity-specific estimates. If all significant inputs required to fair value an instrument are observable, the instrument is included in level 2; and

39.2 Financial Risk Management- Objectives And Policies

The Companyâs activities exposes it to variety of financial risk viz. credit risk, liquidity risk and market risk. The Company has various financial assets such as deposits, Loans & Advances, trade and other receivables and cash and bank balances directly related to their business operations. The Companyâs principal financial liabilities comprise of trade and other payables. The Companyâs senior management focus is to foresee the unpredictability and minimise the potential adverse effects on the Companyâs financial performance. The Companyâs overall risk, management procedures to minimize the potential adverse effect of the financial market on the Companyâs performance are as follows:

39.3 Credit Risk

Credit risk is the risk that counterparty will not meet its obligations under a financial instrument or customer contract, leading to a financial loss. The Company is exposed to credit risk primarily from trade receivables, cash and cash equivalents, and financial assets measured at amortised cost.

A Trade Receivables:

Trade receivables of the Company are generally unsecured. The Company performs ongoing credit evaluations of its customersâ financial conditions and monitors the creditworthiness of its customers to which it grants credit terms in the normal course of business through internal evaluation. The allowance for impairment of trade receivables is created to the extent and as and when required, based upon the expected collectability of accounts receivables. The Company has no concentration of credit risk as the customer base is geographically distributed in India.

B Cash and cash equivalents and bank deposits

Credit risk related to cash and cash equivalents and bank deposits is managed by only accepting highly rated banks and diversifying bank deposits and accounts in different banks across the country.

C Other financial assets measured at amortised cost

Other financial assets measured at amortised cost includes loans and advances, security deposits and others. Credit risk related to these other financial assets is managed by monitoring the recoverability of such amounts continuously and is based on the credit worthiness of those parties.

D Investments

I nvestment in Joint Venture are measured at cost as per Ind AS 28, âInvestment in Associates and Joint Venturesâ and hence not presented here.

Provision for expected credit losses

a) Expected credit losses for financial assets other than trade receivables

The Company does not have any expected loss based impairment recognised on such assets considering their low credit risk nature.

b) Expected credit loss for trade receivables under simplified approach

The Company recognizes lifetime expected credit losses on trade receivables using a simplified approach, wherein Company has defined percentage of provision by analyzing historical trend of default and such provision percentage determined have been considered to recognize life time expected credit losses on trade receivables (other than those where default criteria are met in which case the full expected loss against the amount recoverable is provided for). Based on such simplified approach,no allowance has been recognised.

39.4 Liquidity risk is the risk that the Company will not be able to meet its financial obligation as they fall due. Liquidity risk arises because of the possibility that the Company could be required to pay its liabilities earlier than expected. Liquidity risk is managed by monitoring on a regular basis that sufficient funds are available to meet any future commitments. The Company manages its liquidity risk by maintaining sufficient bank balance .

39.5 Market Risk

Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk comprises three types of risk: interest rate risk, currency risk and other price risk, such as equity price risk and commodity risk. The Company is not exposed to other price risk whereas the exposure to currency risk and interest risk is given below:

A Foreign Currency Risk

Foreign currency risk is the risk that the value of financial instruments will fluctuate due to changes in foreign exchange rates. It arises mainly where receivables and payables exist due to transactions entered in foreign currencies.

A.1 Foreign currency risk management

The Company undertakes transactions denominated in foreign currencies; consequently, exposures to exchange rate fluctuations arise. Exchange rate exposures are managed within approved policy parameters. Quarterly reports are submitted to Board of Directors on the unhedged foreign currency exposures.

43 ADDITIONAL REGULATORY INFORMATION REQUIRED BY SCHEDULE III OF COMPANIES ACT, 2013

43.1 Details of Benami property:

No proceeding have been initiated or are pending against the Company for holding any Benami property under the Benami Transaction (Prohibition) Act,1988 (45 of 1988) and the rules made thereunder.

43.2 Utilisation of borrowed funds and share premium:

(a) The Company has not advanced or loaned or invested funds to any other person(s) or entity(ies), including foreign entities (Intermediaries) with the understanding that the Intermediary shall:

i) directly or indirectly lend or invest in other person or entities identified in any manner whatsoever by or on behalf of the Company (Ultimate Beneficiaries) or

ii) provide any guarantee, security or the like or on behalf of the ultimate beneficiaries.

(b) The Company has not received any fund from any person(s) or entity(ies), including foreign entities (Funding Party) with the understanding (whether recorded in writing or otherwise) that the Company shall:

i) directly or indirectly lend or invest in other person or entities identified in any manner whatsoever by or on behalf of the Company (Ultimate Beneficiaries) or

ii) provide any guarantee, security or the like or on behalf of the ultimate beneficiaries.

43.3 Compliance with number of layers of companies:

The Company has complied with the number of layers prescribed under the Companies Act, 2013.

43.4 Compliance with approved scheme(s) of arrangements:

The Company has not entered into any scheme or arrangement which has an accounting impact on current or previous year.

43.5 Undisclosed income:

There is no income surrendered or disclosed as income during the current or previous year in the tax assessments under the Income Tax Act, 1961, that has not been recorded in the books of account.

43.6 Details of crypto currency or virtual currency:

The Company has not traded or invested in crypto currency or virtual currency during the current or previous year.

43.7 Valuation of Property, Plant and Equipment:

The Company has not revalued its property, plant and equipment (including right-of-use-assets) during the current or previous year.

43.8 Willful Defaulter:

The Company is not declared as willful defaulter by any bank or financial institution (as defined under the Companies Act, 2013) or consortium thereof or other lender in accordance with the guidelines on willful defaulters issued by the Reserve Bank of India.

43.9 Details of Transaction with Struck of Companies:

There are no Transactions with Struck of Companies during the Current and Previous Year.

44 The previous year figures have been regrouped/ reclassified, wherever necessary to confirm to the current year presentation.

Mar 31, 2022

CONTINGENT LIABILITIES & CAPITAL COMMITMENTS		('' in lakhs)
Particulars	As at	As at
Particulars	31^st March, 2022	31^st March, 2021
Claims against the Company not acknowledged as debts
i. Estimated amount of contracts remaining to be executed on capital accounts and not provided for (net of advances).	4.38	14.95
ii. Income tax demand under appeal	71.53	62.78
Total	75.91	77.73

LOANS & ADVANCES

The company has granted Unsecured loans to Companies, Firms, Limited Liability Partnerships and various other parties other than those covered under Section 185 of the Act for the purpose of meeting their working capital requirements. The aggregate amount of Loans given during the year is '' 28,775 lakhs and balance outstanding at the Balance sheet date is '' 25,902.22 lakhs (PY '' 6,381.88 lakhs).

SEGMENT REPORTING

CAPITAL MANAGEMENT

For the purpose of the Companyâs capital management, capital includes issued equity capital, share premium and all other equity reserves attributable to the equity holders of the company. The primary objective of the companyâs capital management is to maximise the shareholder value and to safeguard the companies ability to remain as a going concern. The company manages its capital structure and makes adjustments to it, in light of changes in economic conditions and the requirements of the financial covenants. To maintain or adjust the capital structure, the company may adjust the dividend payment to shareholders, return capital to shareholders or issue new shares. The current capital structure of the company is equity based with no financing through borrowings. The company is not subject to any externally imposed capital requirement.

No changes were made in the objectives, policies or processes during the year ended 31^st March, 2022 and 31^st March, 2021 respectively.

FAIR VALUE DISCLOSURESI The company uses the following hierarchy for determining and disclosing the fair value of financial instruments by valuation technique:

The categories used are as follows:

â¢ Level 1: This hierarchy includes financial instruments measured using quoted prices. This includes listed equity instruments, traded bonds, ETFs and mutual funds that have quoted price.;

â¢ Level 3: If one or more of the significant inputs is not based on observable market data, the instrument is included in level 3.

37.2 Financial Risk Management - Objectives And Policies

The companyâs activities exposes it to variety of financial risk viz. credit risk, liquidity risk and market risk. The company has various financial assets such as deposits, loans & advances, trade and other receivables and cash and bank balances directly related to their business operations. The Companyâs principal financial liabilities comprise of trade and other payables. The companyâs senior management focus is to foresee the unpredictability and minimise the potential adverse effects on the companyâs financial performance. The companyâs overall risk, management procedures to minimize the potential adverse effect of the financial market on the companyâs performance are as follows:

37.3 Credit Risk

A. Trade Receivables:

B. Cash and cash equivalents and bank deposits

Credit risk related to cash and cash equivalents and bank deposits is managed by only accepting highly rated banks and diversifying bank deposits and accounts in different banks across the country.

C. Other financial assets measured at amortised cost

D. Investments

I nvestment in Joint Venture are measured at cost as per Ind AS 28, âInvestment in Associates and Joint Venturesâ and hence not presented here.

Provision for expected credit losses

a) Expected credit losses for financial assets other than trade receivables

The Company does not have any expected loss based impairment recognised on such assets considering their low credit risk nature.

b) Expected credit loss for trade receivables under simplified approach

37.4 Liquidity risk is the risk that the company will not be able to meet its financial obligation as they fall due. Liquidity risk arises because of the possibility that the company could be required to pay its liabilities earlier than expected. Liquidity risk is managed by monitoring on a regular basis that sufficient funds are available to meet any future commitments. The company manages its liquidity risk by maintaining sufficient bank balance. As on 31^st March, 2022, the companyâs financial liabilities of '' 7479.40 lakhs (31^st March, 2021 '' 4024.02 lakhs) are all current and due in the next financial year.

Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk comprises three types of risk: interest rate risk, currency risk and other price risk, such as equity price risk and commodity risk. The company is not exposed to other price risk whereas the exposure to currency risk and interest risk is given below:

A. Foreign Currency Risk

A.1 Foreign currency risk management

B. Interest Rate Risk

I nterest rate risk is the risk that the fair value or future cash flows of financial instrument will fluctuate due to change in market interest rates. The companyâs investments are primarily in fixed rate interest bearing investments. Hence the company is not significantly exposed to interest rate risk.

The companyâs liabilities towards gratuity and leave encashment, a defined benefit obligation, is accrued and provided for on the basis of actuarial valuation, using the projected unit credit method as at the Balance Sheet date.

INCOME TAXES

The Company has exercised the option permitted under Section 115BAA of the Income Tax Act, 1961 as introduced by the Taxation Laws (Amendment) Ordinance, 2019 from the financial year 2019-20. Accordingly, the provision for income tax and deferred tax balances have been recorded/remeasured using such rates.

Mar 31, 2018

1 Corporate Information

Bhansali Engineering Polymers Limited is a Public Listed company registered in India, incorporated under the provisions of the Companies Act, 1956 and its shares are listed with NSE and BSE. The company is engaged in manufacturing of ABS and SAN resins which is classified under the category of Highly Specialized Engineering Thermoplastics. The manufacturing facilities of the company is located at Abu Road, Rajasthan and Satnoor, Madhya Pradesh.

1.1 Basis Of Preparation

âThe Ministry of Corporate Affairs had notified the roadmap to implement Indian Accounting Standards (âInd ASâ) under the Companies (Indian Accounting Standards) Rules, 2015 as amended by the Companies (Indian Accounting Standards) (Amendment) Rules, 2016. As per the said roadmap, the Company is required to apply Ind AS starting from financial year beginning on or after April 1, 2017.

Accordingly, the financial statements of the Company comprising of the Balance Sheet, Statement of Profit & Loss including other comprehensive Income, Statement of changes in Equity and Statement of Cash Flows together with the notes have been prepared in accordance with Indian Accounting Standards (Ind AS.)

For all years up to and including the year ended March 31, 2017, the Company prepared its financial statements in accordance with accounting standards notified under the section 133 of the Companies Act 2013 (ââThe Actââ), read together with paragraph 7 of the Companies (Accounts) Rules, 2014 (Indian GAAP). These financial statements for the year ended March 31, 2018 are the first Ind AS compliant annual financial statements with comparative figures for the year ended March 31, 2017 also under the Ind AS. The date of transition is April 1, 2016. Please refer to note 41 for detailed disclosure on the first time adoption of Ind AS

The financial statements have been prepared on an accrual basis and under the historical cost convention.

The Financial statements are presented in Indian Rupees (Rs.) and all values are rounded to the nearest lacs, except otherwise stated.â

All the Assets & Liabilities have been classified as current or non-current as per the Companyâs normal operating cycle and other criteria as set out in Ind AS 1 and schedule III to the said Act.

2 Use of Judgments, Estimates and Assumptions

The preparation of the Companyâs financial statements requires management to make judgments, estimates and assumptions that affect the reported amounts of revenues, expenses, assets and liabilities and the accompanying disclosures and the disclosure of contingent liabilities. Uncertainty about these assumptions and estimates could result in outcomes that require a material adjustment to the carrying amount of assets or liabilities affected in future periods. Difference between actual results and estimates are recognised in the periods in which the results are known / materialise. The estimates and associated assumptions are based on historical experience and various other factors that are believed to be reasonable under the circumstances existing when the financial statements were prepared. The estimates and underlying assumptions are reviewed on an ongoing basis. Revision to accounting estimates is recognised in the year in which the estimates are revised .

Judgements

In the process of applying the companyâs accounting policies, management has made the following judgements which have a significant effect on the amounts recognised in the financial statements:

Defined benefit plans (Gratuity & Leave Encashment benefits)

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

Useful life of Property, plant and equipment

The company reviews the useful life of Property, plant and equipment at the end of each reporting year. This reassessment may result in change in depreciation expenses in the future years.

Nature and purpose of Reserves

(i) Securities premium account

The amount received in excess of face value of the equity shares is recognised in Securities Premium Reserve.

(ii) General reserve

General Reserve is used from time to time to transfer profits from retained earnings for appropriation purposes. General Reserve is created by transfer from one component of equity to another and is not an item of other comprehensive income.

(iii) Retained Earnings

Retained earning are the profits that the Company has earned till date, less any transfer to General Reserve, dividends or other distributions paid to the shareholders.

3 Leases

Operating Lease

The leasing arrangements are in most cases renewable by mutual consent, on mutually agreeable terms.

Future lease rentals payable in respect of residential and office premises:

4 Dues to micro, small and medium enterprises:

There is no amount due to Micro, Small and Medium Enterprises as defined under â The Micro, Small and Medium Enterprise Development Act, 2006â. The information has been determined to the extent such parties have been identified on the basis of information available with the Company.

5 Details of Forward Contracts & Unhedged Foreign Currency Exposure:

5.1 Forward contracts outstanding as at the Balance Sheet date

There are no forward contract outstanding as at balance sheet date.

5.2 Foreign currency exposures which are not hedged as at the Balance Sheet date:

6 Corporate Social Responsibility (CSR)

The Company has adopted a CSR Policy which encompasses wide range of activities enumerated vide Schedule VII to the Companies Act 2013 read with the Companies (Corporate Social Responsibility Policy) Rules, 2014 which is primarily comprised of:

1. Happy Childhood

2. Health

3. Education

4. Employment

5. Hunger Eradication

6. Environmental Sustainability

7. Promoting Gender Equality, Sports, Art and Culture etc.

8. Social Welfare activities for general public and upliftment for deserving sections of society

The Company is inclined at present to undertake CSR activities pertaining to promotion of education, art and culture, imparting of training and also to extend help to deserving and needy students and upgrade the educational standards and suitable infrastructure for conducting training programmes etc. in vicinity of its one of the factory/ plant located in Satnoor, Madhya Pradesh which enables the inhabitants of neighbouring areas and deprived sections of the society to be immensely benefited by way of availing good education and opportunity for skill developments of their children.

The Companyâs CSR policy is available at: http://bhansaliabs.com/investor/corporate-social-responsibility-csr-policy/

6.2 Prescribed CSR Expenditure : Rs. 58.64 Lacs for current year ended 31 March, 2018 (Previous Year rs.. 27.84 Lacs)

7 Segment Reporting

The Company manufactures and sells ABS and SAN which belong to the same product group i.e. âHighly Specialized Engineering Thermoplasticsâ. The product has the same risks and returns, which are predominantly governed by market conditions, namely demand and supply position. Thus, in the context of Indian Accounting Standard - 108 âSegment Reportingâ, issued by the Institute of Chartered Accountants of India, there is only one identified reportable segment.

8 Capital management

The company manages its capital structure and makes adjustments to it, in light of changes in economic conditions and the requirements of the financial covenants. To maintain or adjust the capital structure, the company may adjust the dividend payment to shareholders, return capital to shareholders or issue new shares. The current capital structure of the company is equity based with no financing through borrowings. The company is not subject to any externally imposed capital requirement.

No changes were made in the objectives, policies or processes during the year ended March 31, 2018 and March 31, 2017 respectively.

9 Fair value disclosures

9.1 The company uses the following hierarchy for determining and disclosing the fair value of financial instruments by valuation technique:

The categories used are as follows:

â- Level 1: This hierarchy includes financial instruments measured using quoted prices. This includes listed equity instruments, traded bonds, ETFs and mutual funds that have quoted price. ;

- Level 2: The fair value of financial instruments that are not traded in an active market is determined using valuation techniques which maximize the use of observable market data and rely as little as possible on entity-specific estimates. If all significant inputs required to fair value an instrument are observable, the instrument is included in level 2; and

- Level 3: If one or more of the significant inputs is not based on observable market data, the instrument is included in level 3.â

The carrying value of all the financials assets and financial liabilities are reasonable a approximation of their fair values. Accordingly the fair values of such financial assets and liabilities have not been disclosed separately.

9.2 Financial Risk Management- Objectives And Policies

The companyâs activities expose it to variety of financial risk viz. credit risk, liquidity risk and market risk. The company has various financial assets such as deposits, trade and other receivables and cash and bank balances directly related to their business operations. The Companyâs principal financial liabilities comprise of trade and other payables. The companyâs senior management focus is to foresee the unpredictability and minimise the potential adverse effects on the companyâs financial performance. The companyâs overall risk, management procedures to minimize the potential adverse effect of the financial market on the companyâs performance are as follows:

9.3 Credit Risk

Credit risk is the risk that counterparty will not meet its obligations under a financial instrument or customer contract, leading to a financial loss. The Company is exposed to credit risk primarily from trade receivables, trade deposits, balances with banks and other receivables.

9.4 Liquidity risk

Liquidity risk is the risk that the company will not be able to meet its financial obligation as they fall due. Liquidity risk arises because of the possibility that the company could be required to pay its liabilities earlier than expected. Liquidity risk is managed by monitoring on a regular basis that sufficient funds are available to meet any future commitments. The company manages its liquidity risk by maintaining sufficient bank balance .

As on March 31, 2018, the companyâs financial liabilities of Rs. 12,870.24 lacs (March 31, 2017 Rs. 24,036.56 lacs and April 1,2016 Rs. 21,195.36 lacs) are all current and due in the next financial year.

9.5 Market Risk

Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk comprises three types of risk: interest rate risk, currency risk and other price risk, such as equity price risk and commodity risk. The company is not exposed to other price risk whereas the exposure to currency risk and interest risk is given below:

A Foreign Currency Risk

A.1 Foreign currency risk management

The carrying amounts of the Companyâs foreign currency denominated monetary assets and monetary liabilities at the end of the reporting period are as follows.

B Interest Rate Risk

Interest rate risk is the risk that the fair value or future cash flows of financial instrument will fluctuate due to change in market interest rates. The companyâs investments are primarily in fixed rate interest bearing investments. Hence the company is not significantly exposed to interest rate risk.

10 Gratuity and other post-employment benefit plans.

10.1 Defined Contribution Plans :

The Company has recognised the following amounts in the Statement of Profit and Loss :

Companyâs contributions paid/payable during the year to Provident Fund, ESIC, Labour Welfare Fund and Superannuation Fund are recognised in the Statement of Profit & Loss.

10.2 Defined Benefit Plans :

10.3 Statement of Profit and Loss

Amount recognised in Statement of profit and loss in respect of these defined benefit plans are as follows:

The current service cost and net interest expense for the year are included in the âEmployee benefit expenseâ line item in the Statement of Profit and Loss.

The remeasurement of the net defined benefit liability is included in other comprehensive income.

10.4 Sensitivity Analysis

The financial results are sensitive to the actuarial assumptions. The changes to the Defined Benefit Obligations for increase in decrease of 1% from assumed salary escalation, withdrawal and discount rates are given below:

11 Related Party Disclosures:

A. As per Accounting Standard 18 issued by the Institute of Chartered Accountants of India the companyâs related parties and transactions are disclosed below:

12 Income Taxes

âIndian companies are subject to Indian Income Tax on a standalone basis. Entity is assessed to tax on taxable profits determined for each fiscal year beginning on April 1 and ending on March 31. For each fiscal year, the entity profit or loss is subject to the higher of the regular income tax payable or the minimum alternative tax (âMATâ).

Statutory income taxes are assessed based on book profits prepared under generally accepted accounting principles in India adjusted in accordance with the provisions of the (Indian) Income Tax Act, 1961. The adjustments generally relate to depreciation of fixed assets, disallowances of certain provisions and accruals, deduction for tax holidays, the set-off of tax losses and depreciation carried forward and retirement benefit costs. Statutory income tax is charged at 30% plus a surcharge and education cess. MAT is assessed on book profits adjusted for certain items as compared to the adjustments followed for assessing regular income tax under normal provisions. MAT for the fiscal year 2017-18 is 18.5% plus surcharge and education cess. MAT paid in excess of regular income tax during a year can be set off against regular income taxes within a period of fifteen years succeeding the fiscal year in which MAT credit arises subject to the limits prescribed.â

13 Disclosures as Required by Indian Accounting Standard (Ind AS) 101 First Time Adoption of Indian Accounting Standards.

13.1 The Group has adopted Indian Accounting Standards (Ind AS) as notified by the Ministry of Corporate Affairs with effect from 1st April, 2017, with a transition date of 1st April, 2016. These consolidated financial statements for the year ended 31st March, 2018 are the first the Group has prepared under Ind AS. For all years upto and including the year ended 31st March, 2017 , the Group prepared its financial statements in accordance with the accounting standards notified under the section 133 of the Companies Act 2013, read together with paragraph 7 of the Companies (Accounts) Rules, 2014 (âPrevious GAAPâ).

The adoption of Ind AS has been carried out in accordance with Ind AS 101, First-time Adoption of Indian Accounting Standards. Ind AS 101 requires that all Ind AS standards and interpretations that are issued and effective for the first Ind AS financial statements be applied retrospectively and consistently for all financial years presented. Accordingly, the Group has prepared financial statements which comply with Ind AS for year ended 31st March, 2018, together with the comparative information as at and for the year ended 31st March, 2017 and the opening Ind AS Balance Sheet as at 1st April, 2016, the date of transition to Ind AS.

In preparing these Ind AS consolidated financial statements, the Group has availed certain exemptions and exceptions in accordance with Ind AS 101, as explained below. The resulting difference between the carrying values of the assets and liabilities in the consolidated financial statements as at the transition date under Ind AS and Previous GAAP have been recognised directly in equity (retained earnings or another appropriate category of equity). This note explains the adjustments made by the Group in restating its Previous GAAP financial statements, including the Balance Sheet as at 1st April, 2016 and the consolidated financial statements as at and for the year ended 31st March, 2017.

13.2 Exemptions applied

Ind AS 101 allows first-time adopters certain exemptions from the retrospective application of certain requirements under Ind AS; The Group has applied the following exemptions:

(a) Deemed cost for property, plant and equipment and intangible assets

The Group has elected to apply previous GAAP carrying amount of its property, plant and equipment and investment in Joint Venture as deemed cost as on the date of transition to Ind AS.

13.3 Exceptions

The following mandatory exceptions have been applied in accordance with Ind AS 101 in preparing the financial statements.

(a) Estimates

The estimates at April 1, 2016 and at March 31, 2017 are consistent with those made for the same dates in accordance with India GAAP (after adjustments to reflect any differences if any, in accounting policies) apart from the following items where application of previous GAAP did not require estimation.

(b) Defined benefit obligation

In Previous GAAP, acturial gains and losses were recognised in the Statement of Proit and Loss. Under Ind AS, the acturial gains and losses form part of re-measurement of net defined benefit liability / asset which is recognised in other comprehensive income in the respective years.

Footnotes to the reconciliation of equity as at 1st April, 2016 and 31st March, 2017 and Profit and Loss for the year ended 31st March, 2017.

a Proposed Dividend

âUnder Previous GAAP, proposed dividends including Dividend Distribution Tax (DDT) are recognised as a liability in the year to which they relate, irrespective of when they are declared. Under Ind AS, a proposed dividend is recognised as a liability in the year in which it is declared by the Company (usually when approved by the shareholders in a general meeting) or paid.

In the case of the Company, the declaration of dividend occurs after year end. Therefore, the liability of Rs. 199. 08 Lacs for the year ended March 31, 2016 recorded for dividend has been derecognised against retained earnings on April 1, 2016. The proposed dividends for the year ended on March 31, 2017 of Rs. 399.36 Lacs recognised under Previous GAAP was reduced from other payables with the corresponding impact in the retained earnings.â

b Employee benefits expense

As per Ind AS 19 on âEmployee Benefitsâ, actuarial losses on post retirement defined benefits of Rs. 85.80 Lacs and tax thereon of â. 29.70 Lacs are recognised in other comprehensive income and not reclassified to the Statement of Profit and Loss in the subsequent year.

c Deferred Tax

Previous GAAP requires deferred tax accounting using the income statement approach, which focuses on differences between taxable profits and accounting profits for the period. Ind AS 12 âIncome taxesâ, requires entities to account for deferred taxes using the Balance Sheet, which focuses on temporary differences between the carrying amount of an asset or liability in the Balance Sheet and its tax base. The application of Ind AS 12 approach has resulted in recognition of deferred tax on new temporary differences which was not required under previous GAAP. Deferred tax adjustments are recognised in correlation to the underlying transaction in retained earnings.

d Transfer of Capital reserve (Capital Subsidy) to Retained earning

Capital Subsidy received is treated as Capital Reserve in Indian GAAP. Under Ind AS, only income approach is allowed and the amount is to be transferred to Statement of Profit and loss over the year to match the fulfilment of the obligation.

e Other Comprehensive Income

Under Ind AS, all items of income and expense recognized in the period should be included in profit or loss for the year, unless a standard requires or permits otherwise. Items of income and expense that are not recognized in profit or loss but are shown in the Statement of Profit and Loss and âOther comprehensive incomeâ includes remeasurements of defined benefit plans. The concept of other comprehensive income did not exist under previous GAAP.

f Statement of Cash flows

The transition from Indian GAAP to Ind AS did not have a material impact on the statement of cash flows. g Reclassification

Previous GAAP figures have been reclassified/regrouped wherever necessary to conform with financial statements prepared under Ind AS.

The accompanying notes are an integral part of the financial statements.

Mar 31, 2017

1. CORPORATE INFORMATION:

The company is engaged in manufacturing of ABS and SAN resins which is classified under the category of Highly Specialized Engineering Thermoplastics. The manufacturing facilities of the company is located at Abu Road, Rajasthan and Satnoor,Madhya Pradesh.

2.1 Terms / rights attached to Equity Shares

The company has only one class of equity shares having a par value of Rs.1/- per share . Each equity shareholder 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 the approval of the shareholders in the ensuing Annual General Meeting.

During the year ended 31st March, 2017 the amount of dividend, per share, recognised as distribution to equity shareholders is Rs.0.20/- per share (year ended 31st March, 2016 Rs.0.10/- per share)

3.1 Vehicle loans were secured by hypothecation of vehicles and average term was 3-6 years.

4.1 The above Working Capital facilities is secured by a first charge on all the immovable assets of the Company and hypothecation of all movable properties, both present and future and personal guarantee extended by the Managing Director.

5.1 The Company has identified Micro, Small and Medium Enterprises on the basis of information made available. As at 31st March, 2017 there are no dues to Micro, Small and Medium Enterprises that are reportable under the MSMED Act, 2006

6.1 During the year Rs. NIL (P.Y. Rs.3,53,745/- ) was transferred to Investor Education and Protection Fund. There is no further amount due and outstanding to be credited to Investor Education and Protection Fund as on 31st March,2017.

7. The Company manufactures and sells ABS and SAN which belong to the same product group i.e. âHighly Specialized Engineering Thermoplasticsâ. The product has the same risks and returns, which are predominantly governed by market conditions, namely demand and supply position. Thus, in the context of Accounting Standard 17 âSegment Reportingâ, issued by the Institute of Chartered Accountants of India, there is only one identified reportable segment.

8. Details of Forward Contracts & Unhedged Foreign Currency Exposure:

8.1 Forward contracts outstanding as at the Balance Sheet date: NIL

9. Employee benefits:

The Company has made provision for gratuity and leave encashment in the nature of defined benefit obligation on the basis of actuarial valuation as per revised AS-15. Since the liability is not funded through a trust or insurer, there are no plan assets.

The Company has classified the various benefits provided to employees as under:

- Defined Contribution Plans

During the year, the company has recognised the following amounts in the Statement of Profit and Loss:

- Defined Benefit Plans & Other Long term Benefits

In accordance with Accounting Standard 15 (R), actuarial valuation was done as on 31^st March, 2017 in respect of Contribution to Gratuity Fund and Leave Encashment using âProjected Unit Methodâ. The charge on account of provision for gratuity and leave encashment has been included in Salaries, Wages and Bonus (Note 23).

10. The Companyâs pending litigations comprises of claims against the Company by various Authorities.The Company has reviewed all its pending litigations and proceedings and disclosed the contingent liabilities, refer note 40 for details on Contingent liabilities,wherever applicable, in the financial statements.

11. The Companyâs significant leasing arrangements are mainly in respect of residential and office premises. The aggregate lease rentals payable on these leasing arrangements are charged as rent under âOther Expensesâ.

The leasing arrangements are in most cases renewable by mutual consent, on mutually agreeable terms.

12. Remittance in Foreign currency on account of Dividend:

The Company has not made any remittances in foreign currencies on account of dividends during the year and does not have information as to the extent to which remittances in foreign currencies on account of dividends have been made by or on behalf of non-resident shareholders. The dividend paid information about non-resident shareholders is as follows:

13. The consolidated financial statements of the company (viz. including the Financial Statement of its Associate / Joint Venture Company)are attached to these Standalone Financial Statements separately. The details of the Associate / Joint Venture Company regarding the nature of relationship and the basis of consolidation can be referred to in Note 1 to the consolidated financial statements.

14. The details of Specified Bank Notes (SBN) i.e Rs 500/- & Rs 1,000/- notes held and transacted during the period from 8^th November, 2016 to 30^th December, 2016 is as follows:

15. Figures for the Previous Year have been regrouped and rearranged wherever necessary to conform to the Current Yearâs classification.

Mar 31, 2016

1. Terms / rights attached to Equity Shares

The company has only one class of equity shares having a par value of Rs. 1/- per share. Each equity shareholder 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 the approval of the shareholders in the ensuring Annual General meeting.

During the year ended 31st March, 2016 the amount of dividend, per share, recognized as distribution to equity shareholders is Rs. 0.10/- per share (year ended 31st March, 2015 Rs. 0.10/- per share)

2. The Company manufactures and sells ABS and SAN which belong to the same product group i.e. "Highly Specialized Engineering Thermoplastics". The product has the same risks and returns, which are predominantly governed by market conditions, namely demand and supply position. Thus, in the context of Accounting Standard 17 "Segment Reporting", issued by the Institute of Chartered Accountants of India, there is only one identified reportable segment.

(e) Notes:

The estimates of rate of escalation in salary considered in actuarial valuation, takes into account inflation, seniority, promotion and other relevant factors including supply and demand in the employment market. The above information is certified by the actuary.

3. The Company''s pending litigations comprises of claims against the company by various Authorities. The company has reviewed all its pending litigations and proceedings and disclosed the contingent liabilities, refer note 42 for details on Contingent liabilities, wherever applicable, in the financial statements. Based on the decision of the Appellate Authorities in case of tax demands and the interpretations of other relevant provisions & laws, the company has been legally advised that the demand is likely to be either deleted or substantially reduced and accordingly no provision has been made.

4. The company has got a favorable verdict from the Company Law Board (CLB), Mumbai Bench, Mumbai against the case filed by certain group of shareholders in September 2011. However an appeal pertaining to the same is pending for disposal before the High Court, Mumbai.

5. The Company''s significant leasing arrangements are mainly in respect of residential and office premises. The aggregate lease rentals payable on these leasing arrangements are charged as rent under "Other Expenses".

The leasing arrangements are for a period not exceeding one year and are in most cases renewable by mutual consent, on mutually agreeable terms.

6. Remittance in Foreign currency on account of Dividend

7. The Company had as on 30^th June 2002 and 30^th June 2004 revalued its Freehold Land, Building & Plant & Machinery by an approved valuer & the surplus arising thereon was transferred to Revaluation Reserve. As per the requirements of Ind-AS being applicable to the Company from 01^st April, 2017 revaluation of assets has to be made at sufficient regularity & the entire class of property, plant and equipment to which the assets belong should be revalued. Being a huge petrochemical complex and substantial expansion and other technological changes being carried out by the company during the current financial year the management has decided to reverse the balance of the revaluation reserve created earlier, pending revaluation exercise to be carried out in the near future.

8. The consolidated financial statements of the Company (viz including the Financial Statement of its Associate/ Joint Venture Company) are attached to these Standalone Financial Statements separately. The details of the Associate/Joint Venture Company regarding the nature of relationship and the basis of consolidation can be referred to in Note 1 of the consolidated financial statements.

9. Figures for the Previous Year have been regrouped and rearranged wherever necessary to conform to the Current Year''s classification.

Mar 31, 2015

1. Corporate Information:

Bhansali Engineering Polymers Limited is a Public Listed company registered in India, incorporated under the provisions of the Companies Act, 1956 and its shares are listed with NSE and BSE.

The company is engaged in manufacturing of ABS and SAN resins which is classified under the category of Highly Specialized Engineering Thermoplastics. The manufacturing facilities of the company is located at Abu Road, Rajasthan and Satnoor in Madhya Pradesh.

2. Terms / rights attached to Equity Shares

The company has only one class of equity shares having a par value of Rs. 1/- per share . Each equity shareholder 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 the approval of the shareholders in the ensuring Annual General Meeting.

During the year ended 31st March, 2015 the amount of dividend, per share, recognised as distribution to equity shareholders is Rs. 0.10/- per share (Year ended 31st March, 2014 Rs. 0.10/- per share)

3. LONG TERM BORROWINGS

Vehicle loans are secured by hypothecation of vehicles and average term ranges from 3-6 years.

4. SHORT-TERM BORROWINGS

The above Working Capital facilities is secured by a first charge on all the immovable assets of the Company and hypothecation of all movable properties, both present and future and guaranteed by the Managing Director.

5. The Company has identified Micro, Small and Medium Enterprises on the basis of information made available. As at 31st March, 2015 there are no dues to Micro, Small and Medium Enterprises that are reportable under the MSMED Act, 2006

6.During the year Rs. 3,81,289/- was transferred to Investor Education and Protection Fund. There is no further amount due and outstanding to be credited to Investor Education and Protection Fund as on 31st March,2015.

7. Unclaimed Dividend Account balance are available for use only towards settlement of corresponding unpaid dividend liabilities

8. All the Fixed deposits are held as lien with bank against various Working Capital facilities availed.Fixed Deposits with bank include deposits of Rs. 5.10 lacs (Previous Year Rs. 502.09 lacs ) with maturity of more then 12 months.

9. The Company manufactures and sells ABS and SAN which belong to the same product group i.e. "Highly Specialized Engineering Thermoplastics". The product has the same risks and returns, which are predominantly governed by market conditions, namely demand and supply position. Thus, in the context of Accounting Standard 17 "Segment Reporting", issued by the Institute of Chartered Accountants of India, there is only one identified reportable segment.

10. Employee benefits

The Company has made provision for gratuity and leave encashment in the nature of defined benefit obligation on the basis of actuarial valuation as per revised AS-15. Since the liability is not funded through a trust or insurer, there are no plan assets.

The Company has classified the various benefits provided to employees as under:

* Defined Contribution Plans

* Defined Benefit Plans & Other Long term Benefits

In accordance with Accounting Standard 15 (R), actuarial valuation was done as on 31st March,2015 in respect of Contribution to Gratuity Fund and Leave Encashment using "Projected Unit Method'. The charge on account of provision for gratuity and leave encashment has been included in Salaries, Wages and Bonus (Note 23).

11. The Company's pending litigations comprises of claims against the company by various Authorities. The company has reviewed all its pending litigations & proceedings and disclosed the contingent liabilities, refer note 42 for details on Contingent liabilities, wherever applicable, in the financial statements. Based on the decision of the Appellate Authorities in case of tax demands and the interpretations of other relevant provisions& laws, the company has been legally advised that the demand is likely to be either deleted or substantially reduced and accordingly no provision has been made.

12. The company has got a favorable verdict from the Company Law Board (CLB), Mumbai Bench, Mumbai against the case filed by certain group of shareholders in September 2011. However an appeal pertaining to the same is pending for disposal before the Hon'ble High Court, Mumbai.

13. The Company's significant leasing arrangements are mainly in respect of residential and office premises. The aggregate lease rentals payable on these leasing arrangements are charged as rent under "Other Expenses". The leasing arrangements are for a period not exceeding one year and are in most cases renewable by mutual consent, on mutually agreeable terms.

14. The Ministry of Corporate Affairs, Government of India, vide Notification No G.S.R. 723(E) dated 14th October, 2014 has granted a general exemption in respect of preparation of consolidated financial statement in case of company which has one or more associate companies / joint venture. In view of the above circular, the management has decided not to prepare the Consolidated Financial Statements with respect to its joint venture company for financial year 2014-15.

15. Contingent Liabilities and Commitments.

Particulars As at As at 31.03.2015 31.03.2014 (Rs. in lacs) (Rs. in lacs)

(a) Bills Discounted 354.30 269.35

(b) Estimated amount of contracts remaining to be executed on capital 927.07 NIL accounts and not provided for (net of advances).

(c) Service tax and Customs demands under appeal 415.78 415.78

(d) Income tax demand under appeal 291.76 291.76

16. Considering the provisions of Schedule II of the newly enacted Companies Act, 2013, the company, while computing depreciation, has applied the estimated useful life of assets as specified in aforesaid Schedule II. Accordingly the un-amortized carrying value is being depreciated over the remaining useful lives. The written down value of assets whose lives expired have been adjusted in the Statement of Profit & Loss Account of the current year resulting into an increase of Rs. 40.41 lacs in depreciation expenses.

17. Figures for the Previous Year have been regrouped and rearranged wherever necessary to conform to the Current Year's classification.

Mar 31, 2014

1. CORPORATE INFORMATION:

Bhansali Engineering Polymers Limited is a Public Listed company registered in India, incorporated under the provisions of the Companies Act,1956 and its shares are listed with NSE and BSE.

The company is engaged in manufacturing of ABS and SAN resins which is classified under the category of Highly Specialized Engineering Thermoplastics. The manufacturing facilities of the company is located at Abu Road, Rajasthan and Satnoor in Madhya Pradesh.

1.2 Terms / rights attached to Equity Shares

The company has only one class of equity shares having a par value of Rs. 1/- per share. Each equity shareholder 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 the approval of the shareholders in the ensuing Annual General meeting.

During the year ended 31st March, 2014 the amount of dividend, per share, recognised as distribution to equity shareholders is Rs. 0.10/- per share (year ended 31st March, 2013 Rs. 0.10/- per share)

2.1 Vehicle loans are secured by hypothecation of vehicles and average term ranges from 3-6 years.

3.1 The above Working Capital facilities is secured by a first charge on all the immovable assets of the Company and hypothecation of all movable properties, both present and future and guaranteed by the Managing director.

4.1 During the year Rs. 3,20,644/- was transferred to Investor Education and Protection Fund. There is no further amount due and outstanding to be credited to Investor Education and Protection Fund as on 31st March, 2014.

5.1 Unclaimed Dividend Account Balances are available for use only towards settlement of corresponding unpaid dividend liabilities

6.1 All the Fixed deposits are held as lien with bank against various Working Capital facilities availed.Fixed Deposits with bank include deposits of Rs. 502.09 (Previous Year Rs. 707.89 ) with maturity of more then 12 months.

2. RELATED PARTY DISCLOSURES:

As per Accounting Standard 18 issued by the Institute of Chartered Accountants of India the company''s related parties and transactions are disclosed below:

(i) List of related parties where control exists and with whom transactions have taken place and relationships:

3. The Company manufactures and sells ABS and SAN which belong to the same product group i.e. "Highly Specialized Engineering Thermoplastics". The product has the same risks and returns, which are predominantly governed by market conditions, namely demand and supply position. Thus, in the context of Accounting Standard 17 "Segment Reporting", issued by the Institute of Chartered Accountants of India, there is only one identified reportable segment.

4. Details of foreign currency exposures that is not hedged by derivative instruments or otherwise 28.1 Forward contracts outstanding as at the Balance Sheet date

5. EMPLOYEE BENEFITS

The Company has made provision for gratuity and leave encashment in the nature of defined benefit obligation on the basis of actuarial valuation as per revised AS-15. Since the liability is not funded through a trust or insurer, there are no plan assets.

The Company has classified the various benefits provided to employees as under:

- Defined Contribution Plans

During the year, the company has recognised the following amounts in the Profit and Loss Account:

- Defined Benefit Plans & Other Long term Benefits

In accordance with Accounting Standard 15 (R), actuarial valuation was done as on 31st March 2014 in respect of Contribution to Gratuity Fund and Leave Encashment using "Projected Unit Method''. The charge on account of provision for gratuity and leave encashment has been included in Salaries, Wages and Bonus (Note 22).

6. The Income Tax assessments of the company have been completed upto Assessment Year 2010-11. The disputed outstanding demand up to the said Assessment year is Rs. 291.76 lacs (P.Y Rs. 240.51 lacs). Based on the decision of the appellate authorities and the interpretations of other relevant provisions, the company has been legally advised that the demand is likely to be either deleted or substantially reduced and accordingly no provision has been made.

7. The Company''s significant leasing arrangements are mainly in respect of residential and office premises. The aggregate lease rentals payable on these leasing arrangements are charged as rent under "Other Expenses".

8. The company has got a favorable verdict from the Company Law Board (CLB), Mumbai Bench, Mumbai against the case filed by certain group of Shareholders in September 2011. However the shareholders have now filed an appeal in the High Court, Mumbai U/s 10F of the Companies Act, 1956 which is pending for disposal.

9 PROPOSED DIVIDEND

The Company has not made any remittances in foreign currencies on account of dividends during the year and does not have information as to the extent to which remittances in foreign currencies on account of dividends have been made by or on behalf of non-resident shareholders.

10. Figures for the Previous Year have been regrouped and rearranged wherever necessary to conform to the Current Year''s classification.

Mar 31, 2013

1. Corporate Information:

Bhansali Engineering Polymers Limited is a Public Listed company registered in India'' incorporated under the provisions of the Companies Act''1956 and its shares are listed with NSE and BSE.

The company is engaged in manufacturing of ABS and SAN resins which is classified under the category of Highly Specialized Engineering Thermoplastics. The manufacturing facilities of the company is located at Abu Road'' Rajasthan and Satnoor in Madhya Pradesh.

2. The Company manufactures and sells ABS and SAN which belong to the same product group i.e. "Highly Specialized Engineering ThermoplasticsÂ. The product has the same risks and returns'' which are predominantly governed by market conditions'' namely demand and supply position. Thus'' in the context of Accounting Standard 17 "Segment ReportingÂ'' issued by the Institute of Chartered Accountants of India'' there is only one identified reportable segment.

3. Employee benefts:

The Company has made provision for gratuity and leave encashment in the nature of defined benefit obligation on the basis of actuarial valuation as per revised AS-15. Since the liability is not funded through a trust or insurer'' there are no plan assets.

4. The Income Tax assessments of the company have been completed upto Assessment Year 2010-11. The disputed outstanding demand up to the said Assessment year is Rs. 240.51 lacs (P.Y Rs. 240.51 lacs). Based on the decision of the appellate authorities and the interpretations of other relevant provisions'' the company has been legally advised that the demand is likely to be either deleted or substantially reduced and accordingly no provision has been made.

5. The CompanyÂs significant leasing arrangements are mainly in respect of residential and office premises. The aggregate lease rentals payable on these leasing arrangements are charged as rent under "Other ExpensesÂ.

The leasing arrangements are for a period not exceeding one year and are in most cases renewable by mutual consent'' on mutually agreeable terms.

6. A group of shareholders of Company owning around 23.16% stake in the company as on 31st March'' 2013 had initiated legal action in the month of September 2011 against the company and its management by way of filing of petitions/applications before the Company Law Board (CLB)'' Mumbai Bench'' alleging acts of oppression'' mismanagement etc. inter alia others which is still pending before CLB. None of the interim reliefs as sought by the such group of shareholders have been accepted by CLB so far.

7. Dividend:

The Company has not made any remittances in foreign currencies on account of dividends during the year and does not have information as to the extent to which remittances in foreign currencies on account of dividends have been made by or on behalf of non-resident shareholders.

8. Figures for the Previous Year have been regrouped and rearranged wherever necessary to conform to the Current YearÂs classification.

Mar 31, 2012

1.1 Terms / rights attached to Equity Shares

The company has only one class of equity shares having a par value of Rs. 1/- per share . Each equity shareholder is entitled to one vote per share. The company declars and pays dividend in Indian rupees. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General meeting.

During the year ended 31st March, 2012 the amount of dividend, per share, recognized as distribution to equity shareholders is Rs. 0.10/- per share (year ended 31st March, 2011 Rs. 0.10/- per share)

2.1 Vehicle loans including current maturities is secured by hypothecation of Vehicles against which the loans have been taken.

2.2 Vehicle loans are repayable in equal monthly installments over the term of loan ranging from 3 to 6 years.

3.1 The Company has identified Micro, Small and Medium Enterprises on the basis of information made available. As at 31st March, 2012 there are no dues to Micro, Small and Medium Enterprises that are reportable under the MSMED Act, 2006

4.1 There is no amount due and outstanding to be credited to Investor Education and Protection Fund under section 205C of the companies Act, 1956 as at the year end.

(i) The Freehold Land, Building and Plant & Machinery of the Company as on 30th June 2002 and as on 30th June 2004 were revalued by the approved valuer and the surplus arising thereon has been transferred to Revaluation Reserve. Depreciation on revalued assets, amounting to Rs. 974.24 lacs (Previous YearRs. 990.32 lacs) has been appropriated from the Revaluation Reserve.

(ii) Borrowing cost capitalized during the year is Rs. 36.48 lacs (Previous Year Rs. 77.59 lacs)

5.1 Deposits include deposits with related parties Rs. 18 lacs (previous year Rs. 18 lacs) (See Note No 24)

6.1 Fixed Deposit with Banks in margin accounts include deposits of Rs. 604.75 lacs (Previous year Rs. 790.68 lacs ) with maturity of more than 12 months.

* Excise duty of Rs. 16.41 lacs. (Previous year Rs. 14.97 lacs) included in Miscellaneous Expenditure represents mainly the difference in amount of excise duty on closing stock and opening stock of finished goods.

7. Related party disclosures

As per Accounting Standard 18 issued by the Institute of Chartered Accountants of India the company's related parties and transactions are disclosed below:

8. The Company manufactures and sells ABS and SAN and does trading of Polycarbonates which belong to the same product group i.e. "Highly Specialized Engineering Thermoplastics". The product has the same risks and returns, which are predominantly governed by market conditions, namely demand and supply position. Thus, in the context of Accounting Standard 17 "Segment Reporting", issued by the Institute of Chartered Accountants of India, there is only one identified reportable segment.

9. Employee benefits

The Company has made provision for gratuity and leave encashment in the nature of defined benefit obligation on the basis of actuarial valuation as per revised AS-15. Since the liability is not funded through a trust or insurer, there are no plan assets.

The Company has classified the various benefits provided to employees as under:

- Defined Benefit Plans & Other Long term Benefits

In accordance with Accounting Standard 15 (R), actuarial valuation was done as on 31st March 2012 in respect of Contribution to Gratuity Fund and Leave Encashment using "Projected Unit Method'. The charge on account of provision for gratuity and leave encashment has been included in Salaries, Wages and Bonus (Note 19).

The estimates of rate of escalation in salary considered in actuarial valuation, takes into account inflation, seniority, promotion and other relevant factors including supply and demand in the employment market. The above information is certified by the actuary.

10. The Income Tax assessments of the company have been completed upto Assessment Year 2009-10. The disputed outstanding demand up to the said Assessment year is Rs. 240.51 lacs (PY Rs. 265.79 lacs). Based on the decision of the appellate authorities and the interpretations of other relevant provisions, the company has been legally advised that the demand is likely to be either deleted or substantially reduced and accordingly no provision has been made.

11. The Company's significant leasing arrangements are mainly in respect of residential and office premises. The aggregate lease rentals payable on these leasing arrangements are charged as rent under "Other Expenses". The leasing arrangements are for a period not exceeding one year and are in most cases renewable by mutual consent, on mutually agreeable terms.

Future lease rentals payable in respect of residential and office premises:

12. A group of shareholders of Company owning around 19.69% stake in the company has initiated legal action in the month of September 2011 against the company and its management by way of filing of petitions/applications before the Company Law Board (CLB), Mumbai Bench , alleging acts of oppression , mismanagement etc. inter alia others which is still pending before CLB. None of the interim reliefs as sought by the such group of shareholders have been accepted by CLB so far.

13. During the year one of the employee of company has committed fraud of Rs. 464.02 lacs by way of embezzlement of goods. The company has initiated legal action against the employee and terminated the services of the employee. The company has been able to recover Rs. 251.03 lacs till date. The management has taken adequate steps to improve the internal control procedures to prevent such instances of fraud in future by formulating centralized policies and by periodic audits.

14. Proposed Dividend

The Company has not made any remittances in foreign currencies on account of dividends during the year and does not have information as to the extent to which remittances in foreign currencies on account of dividends have been made by or on behalf of non-resident shareholders.

15. The revised schedule VI has become effective from 1st April, 2011 for the preparation of the financial statements. This has significantly affected the disclosure and presentation made in the financial statements. Figures for the Previous Year have been regrouped and re-arranged wherever necessary to conform to the Current Year's classification.

Mar 31, 2011

1. The Freehold Land, Building and Plant & Machinery of the Company as on 30th June 2002 and as on 30th June 2004 were revalued by the approved valuer and the surplus arising thereon has been transferred to Revaluation Reserve. Depreciation on revalued assets, amounting to Rs. 990.32 lacs (Previous Year Rs. 1009.00 lacs) has been appropriated from the Revaluation Reserve.

2. The Company has identified Micro, Small and Medium Enterprises on the basis of information made available. As at 31st March, 2011 there are no dues to Micro, Small and Medium Enterprises that are reportable under the MSMED Act, 2006.

3. As required by Accounting Standard 22 "Accounting for Taxes on Income" issued by the Institute of Chartered Accountants of India, which is mandatory in nature, the Company has recognised Deferred Tax income, which results from the timing difference between the Book Profits and Tax Profits, for the year aggregating to Rs. 672.71 lacs in the Profit and Loss Account.

4. The Company manufactures and sells ABS and SAN and does trading of Polycarbonates which belong to the same product group i.e. "Highly Specialized Engineering Thermoplastics". The product has the same risks and returns, which are predominantly governed by market conditions, namely demand and supply position. Thus, in the context of Accounting Standard 17 "Segment Reporting", issued by the Institute of Chartered Accountants of India, there is only one identified reportable segment.

5. Borrowing cost capitalised during the year is Rs. 77.59 lacs (Previous Year Rs. 129.57 lacs).

6. Employee benefits

The Company has made provision for gratuity and leave encashment in the nature of defined benefit obligation on the basis of actuarial valuation as per revised AS-15. Since the liability is not funded through a trust or insurer, there are no plan assets.

The Company has classified the various benefits provided to employees as under:

- Defined Contribution Plans

- Defined Benefit Plans

In accordance with Accounting Standard 15 (R), actuarial valuation was done as on 31st March 2011 in respect of Contribution to Gratuity Fund and Leave Encashment using "Projected Unit Method'. The charge on account of provision for gratuity and leave encashment has been included in Salaries, Wages and Bonus (Schedule 'O').

7. The Income Tax assessments of the company have been completed upto Assessment Year 2008-09. The disputed outstanding demand up to the said Assessment year is Rs. 265.79 lacs. Based on the decision of the appellate authorities and the interpretations of other relevant provisions, the company has been legally advised that the demand is likely to be either deleted or substantially reduced and accordingly no provision has been made.

8. The Company's significant leasing arrangements are mainly in respect of residential and office premises. The aggregate lease rentals payable on these leasing arrangements are charged as rent under "Manufacturing and Other Expenses" in Schedule "M".

The leasing arrangements are for a period not exceeding one year and are in most cases renewable by mutual consent, on mutually agreeable terms.

9. Excise duty deducted from turnover represents amount of excise duty collected by the company on sale of goods manufactured by the company. Excise duty of Rs. 14.97 lacs. (Previous year Rs. 9.97 lacs) in Miscellaneous expenditure under schedule 'M' Manufacturing administrative and selling expenses represents mainly the difference in amount of excise duty on closing stock and opening stock of finished goods.

10. Contingent Liabilities in respect of:

As at As at

31.03.2011 31.03.2010

(Rs. in lacs) (Rs. in lacs)

(a) Bills Discounted 977.68 59.40

(b) Estimated amount of contracts remaining to be executed on capital accounts and not provided for (net of advances) 141.89 NIL

(c) Show Cause Notices issued in respect of payment of Excise Duty. The matters are subjudice and not provided for NIL 120.00

(d) Demand raised by Excise Authorities 120.00 8.96 against which Appeals have been filed for which the company has been legally advised that these are goods cases and the demand is likely to be deleted.

11. Figures for the Previous Year have been regrouped and re-arranged wherever necessary to conform to the Current Year's classification.

Mar 31, 2010

1. The Freehold Land, Building and Plant & Machinery of the Company as on 30th June 9002 and as on 30th June 2004 were revalued by the approved valuer and the surplus arising thereon has been transferred to Revaluation Reserve. Depreciation on revalued assets, amounting to Rs. 1009.00 lacs (Previous Year Rs. 1030.71 lacs) has been appropriated from the Revaluation Reserve

2. The Company has identified Micro, Small and Medium Enterprises on the basis of information made available. As at 31st March, 2010 there are no dues to Micro, Small and Medium Enterprises that are reportable under the MSMED Act, 2006

3. Employee benefits

The Company has made provision for gratuity and leave encashment in the nature of defined benefit obligation on the basis of actuarial valuation as per revised AS-15. Since the liability is not funded through a trust or insurer, there are no plan assets.

The Company has classified the various benefits provided to employees as under:

Ã Defined Contribution Plans

Ã Defined Benefit Plans

In accordance with Accounting Standard 15 (R), actuarial valuation was done as on 31st March 2010 in respect of Contribution to Gratuity Fund and Leave Encashment using "Projected Unit Method. The charge on account of provision for gratuity and leave encashment has been included in Salaries, Wages and Bonus (Schedule 0).

(e) rsoies:

The estimates of rate of escalation in salary considered in actuarial valuation, takes into account inflation, seniority, promotion and other relevgnt factors including supply and demand in the employment market. The above information is certified by the actuary.

4. The Income Tax assessments of the company have been completed upto Assessment Year 2007-08. The disputed outstanding demand up to the said Assessment year is Rs 293.52 lacs. Based on the decision of the appellate authorities and the interpretations of other relevant provisions, the Company has been legally advised that the demand is likely to be either deleted or substantially reduced and accordingly no provision has been made.

5. One of the creditors of the company had filed a summary suit in the Bombay High Court regarding recovery of Rs.488.87 lacs (including interest of Rs.206.46 lacs) for the supply of raw materials. The same suit was heard on 15h October 2007 and against furnishing of Bank Guarantee by the company for an amount of Rs.141.00 lacs, the suit became ordinary and the Hon. High Court directed that it will be heard with that of a pending suit of the Company on the same creditor for recovery of Rs.949.43 lacs (including interest of Rs, 185.61 lacs).The matter is still pending with the Hon. High Court.

6. Excise duty deducted from turnover represents amount of excise duty collected by the Company on sale of goods manufactured by the company. Excise duty of Rs.9.97 lacs. (Previous year Rs. 6.94 lacs) in Miscellaneous expenditure under schedule M Manufacturing administrative and selling expenses represents mainly the difference in amount of excise duty on closing stock and opening stock of finished goods.

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