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Notes to Accounts of Borosil Glass Works Ltd.

Mar 31, 2016

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 ''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. Pursuant to the approval of the Board of Directors and Shareholders of the Company under Section 68 of the Companies Act, 2013 and regulations as specified in the "Securities and Exchange Board of India (Buy-back of Securities) Regulations, 1998” and amendments thereto (the “Regulations”), the Company has bought back and extinguished 6,96,000 equity shares at the rate of Rs, 2,500 per share for a total consideration of Rs, 17,400.00 lacs, on a proportionate basis through the “Tender Offer” route by utilizing Rs, 1,446.13 lacs from General Reserve and Rs, 15,884.27 lacs from Surplus in the Statement of Profit and Loss. In terms of Section 69 of the Companies Act, 2013 , Capital Redemption Reserve of Rs, 69.60 lacs (sum is equal to nominal value of shares so bought back) has been created out of General Reserve.

3. 16,53,928 (Previous Year 9,57,928) Equity shares were bought back and extinguished in the last five years.

4. Buyers’ credit from a bank is secured by pledge of 1,00,000, 8.54% Secured Redeemable Non Convertible Tax Free Bonds of Power Finance Corporation Ltd. (Previous Year 1,10,60,600 units of JPMorgan India Active Bond Fund Institutional Growth) and carries Interest @ EURIBOR plus 0.80% to 0.95%.

5. Loan from a body corporate is secured by pledge of 1,96,76,397 units of BOI AXA Corporate Credit Spectrum Fund - Direct Plan, 25,50,084 units of IIFL Best of Class Fund I - Class B1 Units (A Category Ill), 25,11,377 units of IIFL Best of Class Fund I - Class B2 Units (A Category Ill) and 33,39,259 units of HDFC Midcap Opportunities Fund Dividend Reinvestment and carries Interest @ 10.75% P.A.

* These figures do not include any amounts, due and outstanding, to be credited to Investor Education and Protection Fund. ** Other Payables includes mainly outstanding liabilities for expenses, Commission to Directors, discount, rebates etc.

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

7. 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, 2016.

8. Pursuant to the enactment of the Companies Act, 2013, the Company had 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, had been charged as depreciation in the statement of profit and loss during the previous year.

# Includes 25,50,084 (Nil) units pledged as a security with an NBFC for loan availed by the Company. ## Includes 25,11,377 (Nil) units pledged as a security with an NBFC for loan availed by the Company.

# The Company has granted loans to a related party to meet various capital expenditures for its expansion plans.

9. 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, 205.98 Lacs (Previous year Rs, 467.45 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.

* Held by Portfolio Manager on behalf of the Company.

# Includes 1,96,76,397 (Nil) units pledged as a security with an NBFC for loan availed by the Company.

## Includes 33,39,259 (Nil) units pledged as a security with an NBFC for loan availed by the Company.

### Includes Nil (57,30,400) units pledged as a security with a bank for the credit facility availed by related party and Nil (1,10,60,600) units pledged as security with a bank for credit facility availed by the company.

10. Aggregate amount of provision for diminution in value of Current Investments of Rs, 334.44 lacs (Rs, 141.99 lacs).

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

12. Refer Note 29 in respect of Investment through Portfolio Management Services.

13. Figures in bracket represent previous year figures.

(b) Defined Benefit Plan:

The employees’ Gratuity Fund is managed by the Life Insurance Corporation of India. The present value of obligation is determined based on actuarial valuation using the Projected Unit Credit Method, which recognizes each period of service as giving rise to additional unit of employee benefit entitlement and measures each unit separately to build up the final obligation.

(f) The estimate of rate of escalation in Salary considered in actuarial valuation, takes into account inflation, seniority, promotion and other retirement factors including supply & demand in the employment market. The above information is certified by the actuary.

14. Notes related to Corporate Social Responsibility expenditure:

(a) CSR amount required to be spent as per Section 135 of the Companies Act, 2013 read with Schedule VII thereof by the company during the year is Rs, 59.94 Lacs (Previous Year Rs, 58.15 Lacs).

(b) Expenditure related to Corporate Social Responsibility is Rs, 61.02 Lacs (Previous Year Rs, 33.83 Lacs).

15. As on 31st March, 2015 the Company had 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 year ended 31st March, 2014. 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 had 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 of previous year.

* Weighted average number of Equity shares is the number of Equity shares outstanding at the beginning of the year, adjusted by the number of Equity shares bought back during the year multiplied by the time weighting factor.

16. Management is of the view that above litigations will not impact the financial position of the company.

17. The Payment of Bonus (Amendment) Act, 2015 envisages enhancement of eligibility limit and Calculation Ceiling under section 12 from Rs, 3500 to Rs, 7000 or the minimum wage for the scheduled employment, as fixed by the appropriate Government, whichever is higher. The Payment of Bonus (Amendment) Act, 2015 have come into force on the 1st April, 2014. However, the same is challenged in Hon’ble High Court of Kerala by some parties and the Kerala High Court has provided stay on the retrospective impact of the same and accordingly same amount shown as contingent liability.

Note 18 - Portfolio Management Services

As at 31st March, 2016, the company has invested Rs, 1,472.81 Lacs (Previous year Rs, 3,111.56 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, 1,474.94 Lacs ( Previous year Rs, 3,095.27 Lacs ) has been accounted as investment in Note 10 and 13 and the amount of Rs, Nil (Previous Year Rs, 16.29 Lacs) shown under the head “ Short- term Loans and Advances in Note 17.

Note 19. - Financial and Derivative Instruments

(a) The Company has not entered into any derivative contract during the year and hence no derivative contract is outstanding.

Note 20 - 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 Companies

Borosil Afrasia FZE

Hopewell Tableware Pvt. Ltd.(w.e.f. 28.01.2016)

(b) Associate Companies

Fennel Investment and Finance Pvt. Ltd.

Gujarat Borosil Ltd.

Gujarat Fusion Glass LLP (Formerly known as Gujarat Fusion Glass Ltd.)

Borosil Afrasia Middle East Trading LLC

(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.

(C) In accordance with the Regulation 34 (3) of Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, advance in the nature of loan is/ areas under:

Notes to the Financial Statement for the year ended 31st March, 2016

(b) None of the Loaners have invested in the shares of the Company.

(c) Loans to employees as per Company’s Policy are not considered for this purpose.

Note 21. - Segment Information

Segment information as per Accounting Standard 17 on Segment Reporting for the year ended 31st March, 2016

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”.

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.

22. Excludes export in Indian currency Note 37

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


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.


Mar 31, 2011

1. Estimated amount of contracts remaining to be executed on capital account not provided for Rs.5,976 Lacs net of advance payment (Previous year Rs.794 Lacs).

2. During the year, the Company sold its Marol property (which was revalued earlier), after obtaining various permissions including from its Shareholders, for a total consideration of Rs.83,000 Lacs. After meeting various expenses pertaining to the said transaction, the Company made a net profit amounting to Rs.78,486 Lacs which has been disclosed as an Extra-Ordinary Item.

3. During the year the Company paid an amount of Rs.63 Lacs under Voluntary Retirement Scheme (VRS) to the workmen at Marai Malai Nagar. The said amount has been fully charged to the Profit and Loss account and disclosed as an extra- ordinary item.

5. 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, 2011.

6. The expenses on account of forward premium on outstanding forward exchange contract to be recognized in the Profit and Loss account of subsequent accounting year aggregating to Rs Nil. (Previous year Rs. 0.30 Lacs)

7. Contingent liabilities :

(Rs. In Lacs)

As at 31.3.2011 As at 31.3.2010

(i) Disputed liabilities in appeal:

a. Income Tax Nil 7

b. Sales Tax 92 97 (No cash outflow is expected in the near future.)

c. Cenvat credit/Service Tax 60 68 (No cash outflow is expected in the near future.)

d. Others 36 30 (No cash outflow is expected in the near future.)

(ii) Bank Guarantees 41 2

(Bank guarantees are provided under contractual/legal obligation. No cash outflow is expected.)

(iii) Fixed Deposit pledged with a Bank against Letter of Credit facility to a third party 150 Nil

(No cash outflow is expected.)

(iv) Guarantee to a Bank against Term Loan facility to a third party Nil 240 (No cash outflow is expected.)

(v) Letter of Credits

Inland- Nil 160

Foreign- Nil 116

(vi) Bill Discounted Nil 113

Secondary Segment:

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

Notes:

(a) Segments have been identified and reported taking into account the different risks and returns, the organization structure and the internal reporting systems. These are organized into the following:

Labware: 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.

(b) Segment Revenue and Results include the respective amounts identifiable to each of the segments and amount

allocated on a reasonable basis. Unallocated includes common expenditure incurred for all the segments and expenses incurred at corporate level.

15. 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

1. Fennel Investment & Finance Pvt. Ltd.

2. Gujarat Borosil Limited

3. Gujarat Fusion Glass Limited

(b) Key Management Personnel

1. Mr. B.L.Kheruka – Executive Chairman.

2. Mr. P.K.Kheruka - Vice Chairman & Managing Director

3. Mr. Shreevar Kheruka – Whole-time Director

4. Mr. V.Ramaswami - Whole-time Director

(c) Relatives of Key Management Personnel

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

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

3. 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:- 1. Vyline Glass Works Limited

2. Borosil International Ltd.

17. (a) Licensed Capacity/Installed capacity

Consequent upon dismantling and disposal of Marol plant during the year, the details pertaining to Licensed and Installed capacities are not applicable.

Production quantity in current year represents the quantity produced by Sub contractors on Job work basis. Previous year quantity produced by Subcontractor on Job work basis are as under:

Scientific Apparatus & Laboratory ware : 1,15,68,989 Units

Consumer ware: 36,40,762 Units

22. 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.462 Lacs being the 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 profit & loss account.

23. As at 31st March 2011, the Company has invested Rs.4,325 lacs (Previous year Rs Nil) 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.3,316 Lacs (Previous year Rs. Nil) has been accounted as investment in Schedule "6" and the balance amount of Rs.1,009 Lacs (Previous year Rs. Nil) has been shown under the head "Loans and Advances" in Schedule "7(e)".

24. Previous years figures have been re-grouped, reworked, reclassified and re-arranged wherever necessary.


Mar 31, 2010

1 In the opinion of the Board, the current assets, loans and advances are approximately of the value stated if realised in the ordinary course of business. The provisions for all known liabilities are adequate.

As At As At 31.03.2010 31.03.2009 2 Commitments and Contingent Liabilities (Rs.In Lakhs) (Rs.In Lakhs) a. Claims against the Company not acknowledged as debts in respect of i. Income Tax - 1,227.17 b. Estimated amount of contracts remaining to be executed on capital account and not provided for (Net off Advances) 3.75 21.85

3 Recognition of Income and Expenses for ongoing projects are based upon expected / achieved sales value and estimated costs and work completion status as certifi ed by architects, which being a technical matter, has been relied upon by the auditors.

4 During the year the Company transferred its investment in 12 subsidiaries amounting to Rs 9,025.78 Lakhs to one of its subsidiary Peninsula Holding & Investment Private Limited for a total consideration of Rs 9,025.78 Lakhs.

5 Excess Income Tax provision of earlier years of Rs 648.75 Lakhs was reversed pursuant to assessment proceedings.

6 The Extra ordinary item in Schedule 12 of Profi t & Loss Account comprises entirely of amortisation of VRS and related cost incurred in earlier years.

The amortisation for current year was Rs. 4,568 Lakhs as against Rs 1,601 Lakhs for the previous year. The increase of Rs 2,967 Lakhs is due to compliance with Accounting Standard-15, which requires the unamortised portion of the deferred revenue expenses (VRS) to be amortised entirely by 31st March 2010.

7 Employee Stock Option Scheme (ESOS)

a During the year, the Company has granted NIL (Previous Year - 770,000) Employee Stock Options to some employees of the Company.

b The Company has granted stock options to employees under the Employees Stock Option Scheme at grant price of Rs. 70/- (face value Rs. 2/-)

c Certain disclosures in respect of the scheme are as under:

i. As the options are granted using the face value, no compensation will arise.

17 Employee Benefi t Plans

The Company has classifi ed various benefi t plans as under:

a Defined Contribution Plan

The Company has recognised the following amounts in Profi t and Loss Account which are included under Contributions to Funds

b Defined Benefit Plan:

i. Gratuity (Funded)

ii Leave Encashment (Non funded)

In terms of the Guidance on implementing the revised AS 15, issued by the Accounting Standards Board of the Institute of Chartered Accountants of India, the Gratuity Trust set up by the Company is treated as defi ned benefi t plan since the Company has to meet the shortfall, if any. However at the year end, no shortfall remains unprovided for.

Leave encashment is payable to eligible employees who have earned leaves, during the employment and / or separation as per the Companys policy.

Valuations in respect of Gratuity and Leave Encashment, as at the Balance Sheet date, based on the following assumptions.

i The disclosures of Gratuity are as under:

The Company has funded its gratuity obligation under Group Gratuity Policy managed by LIC. The disclosures stated below have been obtained from independent actuary, as the fi gures from LIC were not available. In view of this, certain disclosures could not be provided. The other disclosures in accordance with AS -15 (revised) pertaining to Defi ned Benefi t Plans are given below:

8 List of Related Parties and Transactions during the year.

I Controlling Companies

(i) Topstar Mercantile Private Limited

II Subsidiary Companies

(i) Champs Elysee Enterprises Private Limited

(ii) Peninsula Mega Properties Private Limited

(iii) Peninsula Holdings and Investments Private Limited (formerly known as Boom Realty Private Limited)

(iv) Renato Finance and Investments Private Limited

III Step Down Subsidiary Companies

(i) City Parks Private Limited

(ii) Inox Mercantile Company Private Limited

(iii) Peninsula Facility Management Services Limited (formerly known as Peninsula Facility Management Services Private Limited)

(iv) Peninsula Investment Management Company Limited

(v) Peninsula Mega Township Developers Private Limited

(vi) Peninsula Pharma Research Centre Private Limited

(vii) Peninsula Trustee Limited

(viii) Planetview Mercantile Company Private Limited

(ix) RR Mega Property Developers Private Limited

(x) RR Real Estate Development Private Limited

(xi) Rishiraj Enterprises Limited (formerly known as Rishiraj Enterprises Private Limited)

(xii) Takenow Property Developers Private Limited

IV Associate Companies with whom the Company had transactions during the year

(i) Delta Hospitality Private Limited (formerly known as Fasttrack Impex Private Limited)

(ii) JM Realty Management Private Limited

(iii) L & T Crossroads Private Limited

(iv) SEW Electricals Private Limited

(v) Topzone Mercantile Company Private Limited

V Companies where Key Management Personnel /their relatives exercise signifi cant infl uence

(i) Ashok Piramal Management Corporation Limited

(ii) Freedom Registry Limited (formerly known as Amtrac Management Services Limited)

(iii) Morarjee Textiles Limited

(iv) Onestar Mercantile Company Private Limited

(v) Thundercloud Technologies (India) Private Limited

(vi) RR Mega City Builders Private Limited

(vii) Peninsula Mega-City Development Private Limited

(viii) Peninsula SA Realty Private Limited

(ix) Peninsula Townships Development Private Limited

(x) Delta Corp Limited

(xi) Rockfi rst Real Estate Limited (formerly known as Rockfi rst Real Estate Private Limited)

(xii) Ashok Piramal Mega-City Development Private Limited

(xiii) Ashok Piramal Mega Properties Private Limited

(xiv) Ashok Piramal Township Development Private Limited

(xv) Goldlife Mercantile Company Private Limited

(xvi) Jammin Recreation Private Limited

(xvii) Peninsula Real Estate Management Private Limited

(xviii) Peninsula Real Estate Services Private Limited

(xix) Pune Football Club Limited

(xx) Topvalue Brokers Private Limited

(xxi) Integra Apparels and Textiles Limited

(xxii) Truewin Realty Private Limited

(xxiii) Topvalue Real Estate Development Private Limited

VI Enterprises where Key Management Personnel /their relatives exercise signifi cant infl uence

(i) Ashok G. Piramal Trust

(ii) Peninsula Land Limited ESOP Trust

VII Key Management Personnel

(i) Ms. Urvi A. Piramal - Executive Chairperson (ii) Mr. Rajeev A. Piramal- Executive Vice Chairman (iii) Mr. Mahesh S. Gupta - Group Managing Director (iv) Mr. Rajesh Jaggi - Managing Director

VIII R elatives of Key Management Personnel

(i) Mr. Harshvardhan A. Piramal - Son of Executive Chairperson (ii) Mr. Rajeev A. Piramal - Son of Executive Chairperson (iii) Mr. Nandan A. Piramal -Son of Executive Chairperson (iv) Mr. Jaydev Mody - Brother of Executive Chairperson (v) Ms. Sunita Gupta - Spouse of Group Managing Director (vi) Ms. Kalpana Singhania - Sister of Executive Chairperson

9 Earnings Per Share (EPS)

In determining earnings per share, the Company considers the net profi t after tax and includes the post tax effect of any extra - ordinary / exceptional items. The number of shares in computing basic earnings per share is the weighted average number of shares outstanding during the period. The number of shares used in computing diluted earnings per share comprises weighted average shares considered for deriving basic earnings per share, and also the weighted average number of equity shares that could have been issued on the conversion of all dilutive potential equity shares. The diluted potential equity shares are adjusted for the proceeds receivable, had the shares been actually issued at fair price (ie the average market value of outstanding shares). Statement showing the computation of EPS is as under:

10 The Micro, Small and Medium Enterprises Development Act, 2006

The Company has sent letters to suppliers to confi rm whether they are covered under Micro, Small and Medium Enterprises Development Act, 2006 as well as they have fi le required memorandum with the prescribed authorities. Out of the letters sent to the parties, some confi rmations have been received till the date of fi nalisation of Balance Sheet. Based on the confi rmations received, the details of outstandings are as under:

11 Segment Reporting

Since the fi nancial statements contain both consolidated and standalone fi nancials, segment reporting disclosure is provided in notes to consolidated fi nancial statements.

12 Previous year fi gures have been regrouped / reclassifi ed wherever necessary to conform to current year’s classifi cation.

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