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Notes to Accounts of Bhansali Engineering Polymers Ltd.

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 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.

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 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. 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 Year’s 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.

 
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