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Notes to Accounts of Borosil Glass Works Ltd.

Mar 31, 2015

1. Terms/Rights attached to Equity Shares :

The Company has only one class of shares referred to as equity shares having a par value of Rs.10/- per share. Holders of equity shares are entitled to one vote per share. In the event of liquidation of the Company, the holders of equity shares will be entitled to receive any of the remaining assets of the Company, after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders.

2. Since the above deferred payment liability have been fully repaid during the year, details of repayment schedule in respect thereof have not been furnished.

3. Buyers' credit from a bank is secured by way of lien on 1,10,60,600 units of JPMorgan India Active Bond Fund Institutional Growth and carries Interest @ EURIBOR plus 0.65% to 0.85%.

4. Buildings include cost of shares in Co-operative Societies Rs. 0.02 Lacs (Previous year Rs. 0.03 Lacs)

5. In accordance with the Accounting Standard (AS -28 ) on "Impairment of Assets", the management during the year carried out an exercise of identifying the assets that may have been impaired in respect of each cash generating unit in accordance with the said Accounting Standard. On the basis of this review carried out by the management, there was no impairment loss on Fixed Assets during the year ended 31st March, 2015.

6. Pursuant to the enactment of the Companies Act, 2013, the Company has applied the estimated useful life as specified in the Schedule II. Accordingly, the unamortized carrying value is being depreciated / amortized over the revised remaining useful life. The written down value of fixed assets of Rs. 26.09 lacs, where life have been expired as on 1st April, 2014, have been charged as depreciation in the statement of profit and loss.

7. Capital Work in Progress includes amount of Rs. Nil (Previous Year Rs. Nil) on account of pre-operative expenses

8. Presently the Company is liable to pay MAT under Section 115JB of the Income Tax Act, 1961 (The Act) and the amount being the excess of tax payable under Section 115JB of the Act over tax payable as per the provisions other than Section 115JB of the Act is allowed to be carried forward for being set off against the future tax liabilities computed in accordance with the provisions of the Act, other than Section 115JB, in next Ten years. Based on the future projection of the performances, the Company will be liable to pay the income tax computed as per provisions, other than under Section 115JB, of the Act. Accordingly as advised in Guidance note on " Accounting for Credit available in respect of Minimum Alternate Tax under the Income Tax Act 1961 " issued by the Institute of Chartered Accountants of India, Rs. 467.45 Lacs (Previous year Rs. 231.79 Lacs) being the excess of tax payable under Section 115JB of the Act over tax payable as per the provisions other than Section 115JB of the Act has been considered as MAT credit entitlement and credited to statement of profit and loss.

9. Others includes prepaid expenditure and loan to employees.

10. Aggregate amount of provision for diminution in value of Current Investments of Rs. 141.99 lacs ( Rs. 15.40 lacs).

11. Refer Note 1.6 for basis of valuation of Current Investments.

12. Refer Note 30 in respect of Investment through Portfolio Management Services.

13. Figures in bracket represent previous year figures.

14. Others includes mainly Security application money, amount receivable from Portfolio Managers (Refer Note 30), duty receivable etc.

15. As on 31st March, 2015, the Company has exposure of Rs. 856.71 lacs with National Spot Exchange Limited (NSEL) in respect of commodities purchased on the said Exchange, which had defaulted in meeting its payment obligations. The Company along with other co-investors /various forums has initiated various legal actions for recovery of the same. Out of the above exposure, provision for doubtful debts of Rs. 435.00 lacs was made in the previous year. However, no meaningful redressal has been achieved till date. There is no certainty regarding the quantum and period of recovery, even though the Company remains committed to vigorously pursue its rightful claim in these transactions. Accordingly, Management has decided to write off the above amount, without prejudice to legal rights of the Company and the same has been disclosed as an exceptional item in the financial statement.

16. Contingent Liabilities and Commitments (To the extent not provided for) (Rs. in lacs)

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

Contingent Liabilities

Claims against the Company not acknowledged as debts

Disputed Liabilities in Appeal

(No Cash outflow is expected in the near future)

- Sales Tax 44.88 2,550.14

- Income Tax 1.35 71.78

- Cenvat Credit/Service Tax - 19.26

- Others 5.68 32.57

Guarantees

- Bank Guarantees 45.22 75.49

Others

1. Investments Pledged with a Bank against Credit facility 320.37 1,232.50 availed by related parties

2. Letter of Credits- Foreign 104.84 55.61

Total 522.34 4,037.35

Commitments

Estimated amount of Contracts remaining to be executed on 283.80 25.81

Capital Account not provided for (cash outflow is expected on execution of such capital contracts)

Commitments towards Investments 5,425.00 2,706.80

a) Management is of the view that above litigations will not impact the financial position of the Company.

17. Portfolio Management Services

As at 31st March 2015, the Company has invested Rs. 3,111.56 lacs (Previous year Rs. 2,839.64 lacs ) through Portfolio Managers who provide Portfolio Management Services which are in the nature of investment administrative management services and include the responsibility to manage, invest and operate the fund as per the agreement(s) entered with them. As on the said date, the outstanding balance of securities amounting to Rs. 3,095.27 lacs ( Previous year Rs. 2,795.89 lacs ) has been accounted as investment in Note 11 and 14 and the balance amount of Rs. 16.29 lacs ( Previous year Rs. 43.75 lacs) has been shown under the head " Short- term Loans and Advances " in Note 18.

18. Related Party Disclosure

Information on Related Parties Disclosures as per Accounting Standard (AS-18) - "Related Party Disclosures" are given below:

(A) List of Related Parties :

(a) Subsidiary Company

Borosil Afrasia FZE

(b) Associate Companies

Fennel Investment and Finance Pvt. Ltd. Gujarat Borosil Ltd. Gujarat Fusion Glass LLP (Formerly known as Gujarat Fusion Glass Ltd.)

(c) Key Management Personnel

Mr. B. L. Kheruka - Executive Chairman.

Mr. Shreevar Kheruka - Managing Director & CEO.

Mr. V. Ramaswami - Whole-time Director.

(d) Relative of Key Management Personnel

Mr. P. K. Kheruka - Relative of Mr. B. L. Kheruka & Mr. Shreevar Kheruka.

Mrs. Rekha Kheruka - Relative of Mr. B. L. Kheruka & Mr. Shreevar Kheruka.

Mrs. Kiran Kheruka - Relative of Mr. B. L. Kheruka & Mr. Shreevar Kheruka.

Mrs. Priyanka Kheruka - Relative of Mr. B. L. Kheruka & Mr. Shreevar Kheruka.

(e) Enterprises over which persons described in (c) & (d) above are able to exercise significant influence (Other Related Parties) with whom transactions have taken place:-

Vyline Glass Works Ltd.

Sonargaon Properties LLP Croton Trading Pvt. Ltd.

Kheruka Charity Trust

Segment information as per Accounting Standard 17 on Segment Reporting for the year ended 31st March, 2015

19. Segment Information

Segment information as per Accounting Standard 17 on Segment Reporting for the year ended 31 March, 2015

The Company has identified three reportable segments viz. Scientificware, Consumerware & Others. Segments have been identified and reported taking into account nature of products and services, the differing risks and returns and the internal business reporting systems. The accounting policies adopted for segment reporting are in line with the accounting policy of the Company with following additional policies for segment reporting.

a) Revenue and expenses have been identified to a segment on the basis of relationship to operating activities of the segment. Revenue and expenses which relate to enterprise as a whole and are not allocable to a segment on reasonable basis have been disclosed as "Unallocable".

b) Segment assets and segment liabilities represent assets and liabilities in respective segments. Investments, tax related assets and other assets and liabilities that cannot be allocated to a segment on reasonable basis have been disclosed as "Unallocable".

20. Previous year's figures have been re-grouped, reworked, reclassified and re-arranged wherever necessary.


Mar 31, 2013

Note 1 - MAT Credit

Presently the company is liable to pay MAT under section 115JB of the Income Tax Act, 1961 (The Act) and the amount paid as MAT is allowed to be carried forward for being set off against the future tax liabilities computed in accordance with the provisions of the Act, other than Section 115JB, in next Ten years. Based on the future projection of the performances, the Company will be liable to pay the income tax computed as per provisions, other than under section 115JB, of the Act. Accordingly as advised in Guidance note on " Accounting for Credit available in respect of Minimum Alternate Tax under the Income Tax Act 1961" issued by the Institute of Chartered Accountants of India, '' 170.95 Lacs (Previous year Rs. 132.69 Lacs) being the excess of tax payable u/s 115JB of the Act over tax payable as per the provisions other than section 115JB of the Act has been considered as MAT credit entitlement and credited to statement of profit and loss.

Note 2 - Portfolio Management Services

As at 31st March 2013, the company has invested Rs. 3,296.14 Lacs (Previous year Rs. 3,468.70 Lacs) through Portfolio Managers who provide Portfolio Management Services which are in the nature of investment administrative management services and include the responsibility to manage, invest and operate the fund as per the agreement(s) entered with them. As on the said date, the outstanding balance of securities amounting to Rs. 2,274.41 Lacs (Previous year Rs. 2,202.39 Lacs) has been accounted as investment in Note 10 and 13 and the balance amount of Rs. 1,021.73 lacs (Previous year Rs. 1,266.31 Lacs) has been shown under the head "Short-term Loans and Advances" in Note 17.

Note 3 - Related Party Disclosure

Information on Related Parties Disclosures as per Accounting Standard (AS-18) - "Related Party Disclosures" are given below:

(A) List of Related Parties :

(a) Associate Companies

Fennel Investment & Finance Pvt. Ltd.

Gujarat Borosil Ltd.

Gujarat Fusion Glass Ltd.

(b) Key Management Personnel

Mr. B.L.Kheruka - Executive Chairman.

Mr. Shreevar Kheruka - Managing Director.

Mr. V. Ramaswami - Whole-time Director.

(c) Relative of Key Management Personnel

Mr. P. K. Kheruka - Relative of Mr. B. L. Kheruka & Mr. Shreevar Kheruka.

Mr. A. K. Roongte Kheruka - Relative of Mr. B. L. Kheruka & Mr. Shreevar Kheruka.

Mrs. Kiran Kheruka - Relative of Mr. B. L. Kheruka & Mr. Shreevar Kheruka.

Mrs. Priyanka Kheruka - Relative of Mr. B. L. Kheruka & Mr. Shreevar Kheruka.

Mr. A.K. Roongta - Relative of Mr. B. L. Kheruka

(d) Enterprises over which persons described in (b) & (c) above are able to exercise significant influence (Other Related Parties) with whom transactions have taken place:-

Vyline Glass Works Ltd.

Borosil International Ltd.

Sonargaon Properties LLP Roongta Cine Corporation Pvt. Ltd.

Note No. 4 - Segment Information

Segment information as per Accounting Standard 17 on Segment Reporting for the year ended 31st March, 2013

The Company has identified three reportable segments viz. Scientificware, Consumerware & Others. Segments have been identified and reported taking into account nature of products and services, the differing risks and returns and the internal business reporting systems. The accounting policies adopted for segment reporting are in line with the accounting policy of the Company with following additional policies for segment reporting.

a) Revenue and expenses have been identified to a segment on the basis of relationship to operating activities of the segment. Revenue and expenses which relate to enterprise as a whole and are not allocable to a segment on reasonable basis have been disclosed as "Unallocable".

b) Segment assets and segment liabilities represent assets and liabilities in respective segments. Investments, tax related assets and other assets and liabilities that cannot be allocated to a segment on reasonable basis have been disclosed as "Unallocable".

a. The reportable Segments are further described as follows:

Scientificware : Comprising of items used in Laboratories and Scientific ware.

Consumerware : Comprising of items for Domestic use.

Others : Comprising of items for industrial use, Miscellaneous Trading items and solar water heating system.

Unallocated : Consists of Income including income from Investments, expenses, assets and liabilities which can not be directly identified to any of the above segments.

Note 5

Previous year''s figures have been re-grouped, reworked, reclassified and re-arranged wherever necessary.


Mar 31, 2012

(a) Terms/Rights attached to Equity Shares

The Company has only one class of shares referred to as equity shares having at par value of Rs 10/- per share. Holder of equity shares is entitled to one vote per share. In the event of liquidation of the Company, the holders of equity shares will be entitled to receive any of the remaining assets of the Company, after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders.

(b) Pursuant to the approval of the Board of Directors and Shareholders of the Company under Section 77A of the Companies Act, 1956, the Company has been authorized to buy back of upto 9,63,928 equity shares, by spending total amount not exceeding Rs 8,193.39 lacs, that is 25% of the Company's fully paid-up Equity Share Capital and Free Reserves as on 31st March, 2011. The Company bought back 8,28,577 equity shares till 31st March, 2012 for a total consideration of Rs 7,036.46 lacs from open market by utilizing the Security Premium Account and the General Reserve to the extent of Rs 1,721.62 lacs and t 5,231.99 lacs respectively. In terms of Section 77AA of the Companies Act, 1956, Capital Redemption Reserve has been created out of General Reserve for an amount of Rs 82.85 lacs being the nominal value of shares so bought back.

Notes:

i) Buildings include cost of shares in Co-operative Societies Rs 0.02 Lacs (Previous year Rs 0.02 Lacs)

ii) In accordance with the Accounting Standard (As-28) on "Impairment of Assets" As notified by Companies (Accounting Standards) Rules 2006, the management during the year carried out an exercise of identifying the assets that may have been impaired in respect of each cash generating unit in accordance with the said Accounting Standard. On the basis of this review carried out by the management, there was no impairment loss on Fixed Assets during the year ended 31st March, 2012.

iii) Capital Work in Progress includes amount of Rs Nil on account of pre-operative expenses (Previous Year Rs 72.34 Lacs)

Note 1 - MAT Credit

Presently the company is liable to pay MAT under section 115JB of the Income Tax Act, 1961 (The Act) and the amount paid as MAT is allowed to be carried forward for being set off against the future tax liabilities computed in accordance with the provisions of the Act, other than Section 115JB, in next Ten years. Based on the future projection of the performances, the Company will be liable to pay the income tax computed as per provisions, other than under section 115JB, of the Act. Accordingly as advised in Guidance note on "Accounting for Credit available in respect of Minimum Alternate Tax under the Income Tax Act 1961" issued by the Institute of Chartered Accountants of India, Rs 132.69 Lacs (Previous year Rs 461.69 Lacs) being the excess of tax payable u/s 115JB of the Act over tax payable as per the provisions other than section 115JB of the Act has been considered as MAT credit entitlement and credited to statement of profit & loss.

Note 2 - Portfolio Management Services

As at 31st March 2012, the Company has invested Rs 3,468.70 Lacs (Previous year Rs 4,325 Lacs) through Portfolio Managers who provide Portfolio Management Services which are in the nature of investment administrative management services and include the responsibility to manage, invest and operate the fund as per the agreement(s) entered with them. As on the said date, the outstanding balance of securities amounting to Rs 2,202.39 Lacs (Previous year Rs 3,316 Lacs) has been accounted as investment in Note 8 and 12 and the balance amount of Rs 1,266.31 Lacs (Previous year Rs 1,009 Lacs) has been shown under the head "Short- term Loans and Advances" in Note 16.

Note 3 - Related Party Disclosure

Information on Related Parties Disclosures as per Accounting Standard (AS-18) - "Related Party Disclosures" are given below:

(A) List of Related Parties :

(a) Associate Companies

Fennel Investment & Finance Pvt. Ltd.

Gujarat Borosil Ltd.

Gujarat Fusion Glass Ltd.

(b) Key Management Personnel

Mr. B. L. Kheruka - Executive Chairman. .

Mr. P. K. Kheruka - Vice Chairman & Managing Director (Managing Director till 31st July, 2011)

Mr. Shreevar Kheruka - Whole-time Director.

Mr. V. Ramaswami - Whole-time Director.

(c) Relative of Key Management Personnel

Mrs. Rekha Kheruka - Relative of Mr. B L. Kheruka, Mr. P. K. Kheruka & Mr. Shreevar Kheruka.

Mrs. Kiran Kheruka - Relative of Mr. B. L. Kheruka, Mr. P. K. Kheruka & Mr. Shreevar Kheruka.

Mrs. Priyanka Kheruka - Relative of Mr. B L Kheruka, Mr. P. K. Kheruka & Mr. Shreevar Kheruka.

(d) Enterprises over which persons described in (b) & (c) above are able to exercise significant influence (Other Related Parties) with whom transactions have taken place:-

Vyline Glass Works Ltd.

Borosil International Ltd.

Note 4 - Segment Information

Segment information as per Accounting Standard 17 on Segment Reporting for the year ended 31st March, 2012

The Company has identified three reportable segments viz. Scientific ware, Consumer ware & Others. Segments have been identified and reported taking into account nature of products and services, the differing risks and returns and the internal business reporting systems. The accounting policies adopted for segment reporting are in line with the accounting policy of the Company with following additional policies for segment reporting.

a) Revenue and expenses have been identified to a segment on the basis of relationship to operating activities of the segment. Revenue and expenses which relate to enterprise as a whole and are not allocable to a segment on reasonable basis have been disclosed as "Unallowable".

b) Segment assets and segment liabilities represent assets and liabilities in respective segments. Investments, tax related assets and other assets and liabilities that cannot be allocated to a segment on reasonable basis have been disclosed as Unallowable.

Notes to the Financial Statement for the year ended 31st March, 2012

a. The reportable Segments are further described as follows:

Scientific ware: Comprising of items used in Laboratories and Scientific ware.

Consumer ware: Comprising of items for Domestic use.

Others: Comprising of items for industrial use, Miscellaneous Trading items and solar water heating system. Unallocated: Consists of Income including income from investments, expenses, assets and liabilities which cannot be directly identified to any of the above segments.

b Secondary Segment:

Since the operation of the Company are predominantly conducted within India, as such there is no reportable Geographical Segment.

Note 5

Previous year's figures have been re-grouped, reworked, reclassified and re-arranged wherever necessary.

 
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