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Notes to Accounts of Elantas Beck India Ltd.

Dec 31, 2014

1. Contingent liabilities not provided for

(Currency : Rs. in lacs)

2014 2013

a) Claims against the Company not acknowledged as debts 182.63 185.74

b) Excise duty matters 233.14 226.96

c) Income tax matters 23.93 23.93

d) Sales tax matters 448.56 334.23

e) Guarantee in favour of Gujarat Industrial Development Corporation 12.24 12.24

2. Employee benefits :

a) Defined contribution plans

Amount of Rs. 163.63 (previous year : Rs. 154.68) is recognised as an expense towards superannuation & provident fund and included in the ''Contributions to provident and other funds'' under note no 24.

b) Defined benefit plan (Gratuity)

The Company operates a gratuity plan wherein every employee is entitled to the benefit based on last drawn salary for each completed year of service. The same is payable on termination of service or retirement whichever is earlier. The benefit vests after five years of continuous service. The same is funded with the Life Insurance Corporation of India.

c) Defined benefit plan (Cash rewards at retirement)

As per the plan, at the time of normal retirement, Rs. .025 (previous year .025) is payable to employees for each year of service rendered. The scheme is unfunded.

3. Segment reporting

The Company has disclosed business segments as the primary segment. Segments have been identified by the management taking into account the nature of products, manufacturing process, customer profiles, risk and reward parameters and other relevant factors.

The Company''s operations have been classified into two primary segments, "Electrical Insulations" and "Engineering and Electronic Resins and Materials". Segment assets include all operating assets used by the business segment and consist primarily of fixed assets, debtors and inventories. Segment liabilities primarily include creditors and other liabilities. Assets and liabilities that cannot be allocated between the segments are shown as a part of unallocable assets and liabilities.

Secondary segments have been identified with reference to geographical location of the customers. The Company has identified India and outside India as the two geographical segments for secondary segmental reporting. Geographical sales are segregated based on the location of the customer who is invoiced. Assets other than receivables used in the Company''s business or liabilities contracted have not been identified to any of the reportable geographical segments, as these are used interchangeably between geographical segments. All assets other than receivables are located in India. Similiarly, capital expenditure is incurred towards fixed assets in India.

4. A. Key management personnel and relatives of key management personnel Key management personnel :

Mr Ravindra Kumar (with effect from 1 January 2014)

Mr. Rajeev Bhide (upto 31 December 2013)

Mr. Sharadkumar Shetye (Upto 27 May 2014)

Relatives of key management personnel :

Mrs. M. R. Shetye (Upto 27 May 2014)

5. Management believes that the Company''s international transactions with related parties post 31 March 2014 (last period upto which an Accountants'' report has been submitted as required under the Income tax Act, 1961) continue to be at arm''s length and that the transfer pricing legislation will not have any impact on these financial statements, particularly on the amount of tax expense and that of provision for taxation.


Dec 31, 2013

1. Contingent liabilities not provided for (Currency : Rs. in lacs)

2013 2012

a) Claims against the Company not acknowledged as debts 185.74 185.74

b) Excise duty matters 226.96 127.15

c) Income tax matters 23.93 23.93

d) Sales tax matters 334.23 304.40

e) Guarantee in favour of Gujarat Industrial Development Corporation 12.24 12.24

d) Notes :

1) The plan assets comprises entirely of "Insurer Managed Funds".

2) The expected return on plan assets is based on market expectations, at the beginning of the year, for returns over the entire life of related obligations.

3) The estimates of future salary increases considered takes into account the inflation, seniority, promotion and other relevant factors on a long term basis.

4) Changes enacted before the Balance Sheet date are considered while determining the obligation.

5) Expected Employer''s contribution in next year ` 18.00 (Previous year ` 30.00) .

6) Salary escalation rate is 12 % for first 2 years and 10.50% thereafter.

2. Segment reporting

The Company has disclosed business segments as the primary segment. Segments have been identified by the Management taking into account the nature of products, manufacturing process, customer profiles, risk and reward parameters and other relevant factors.

The Company''s operations have been classified into two primary segments, "Electrical Insulations" and "Engineering and Electronic Resins and Materials". Segment assets include all operating assets used by the business segment and consist primarily of fixed assets, debtors and inventories. Segment liabilities primarily include creditors and other liabilities. Assets and liabilities that cannot be allocated between the segments are shown as a part of unallowable assets and liabilities.

Secondary segments have been identified with reference to geographical location of the customers. The Company has identified India and outside India as the two geographical segments for secondary segmental reporting. Geographical sales are segregated based on the location of the customer who is invoiced. Assets other than receivables used in the Company''s business or liabilities contracted have not been identified to any of the reportable geographical segments, as these are used interchangeably between geographical segments. All assets other than receivables are located in India. Similarly, capital expenditure is incurred towards fixed assets in India.

3. Management believes that the Company''s international transactions with related parties post 31 March 2013 (last period upto which an Accountants'' report has been submitted as required under the Income tax Act, 1961) continue to be at arm''s length and that the transfer pricing legislation will not have any impact on these financial statements, particularly on the amount of tax expense and that of provision for taxation.


Dec 31, 2012

1. Segment reporting

The Company has disclosed business segments as the primary segment. Segments have been identified by the Management taking into account the nature of products, manufacturing process, customer profiles, risk and reward parameters and other relevant factors.

The Company''s operations have been classified into two primary segments, "Electrical Insulations" and "Engineering and Electronic Resins and Materials". Segment assets include all operating assets used by the business segment and consist primarily of fixed assets, debtors and inventories. Segment liabilities primarily include creditors and other liabilities. Assets and liabilities that cannot be allocated between the segments are shown as a part of unallowable assets and liabilities.

Secondary segments have been identified with reference to geographical location of the customers. The Company has identified India and outside India as the two geographical segments for secondary segmental reporting. Geographical sales are segregated based on the location of the customer who is invoiced. Assets other than receivables used in the Company''s business or liabilities contracted have not been identified to any of the reportable geographical segments, as these are used interchangeably between geographical segments. All assets other than receivables are located in India. Similarly, capital expenditure is incurred towards fixed assets in India.

2.1 A. Key management personnel and relatives of key management personnel Key management personnel:

Mr. RajeevBhide

Mr. Prashant Deshpande (upto9July2012)

Mr. Sharad kumar Shetye

Relatives of key management personnel:

Mrs. M.R.Shetye

3. Management believes that the Company''s international transactions with related parties post 31 March 2012 (last period up to which an Accountants'' report has been submitted as required under the Income tax Act, 1961) continue to beat arm''s length and that the transfer pricing legislation will not have any impact on these financial statements, particularly on the amount of tax expense and that of provision for taxation.

4. The financial statements for the year ended 31 December 2011 had been prepared as per the then applicable pre revised Schedule VI of the Companies Act 1956. Consequent to the notification of revised Schedule VI under Company''s Act 1956, the financial statements for the year ended 31 December 2012 are prepared as per revised Schedule VI. Accordingly, the previous year''s figures have also been reclassified to conform to this year''s classification.


Dec 31, 2011

1. Employee benefits:

a) Defined benefit plan (Gratuity)

The Company operates a gratuity plan wherein every employee is entitled to the benefit based on last drawn salary for each completed year of service. The same is payable on termination of service or retirement whichever is earlier. The benefit vests after five years of continuous service. The same is funded with the Life Insurance Corporation of India.

b) Defined benefit plan (Cash rewards at retirement)

As per the plan, at the time of normal retirement, Rs. 1 is payable to employees for each year of service rendered. The scheme is unfunded.

c) Defined contribution plans

Amount of Rs. 12,785 (previous year: Rs. 11,667) is recognised as an expense and included in the 'Contributions to provident and other funds' under note no 14.

d) Notes:

1) The plan assets comprises entirely of "Insurer Managed Funds".

2) The expected return on plan assets is based on market expectations, at the beginning of the year, for returns over the entire life of related obligations.

3) The estimates of future salary increases considered takes into account the inflation, seniority, promotion and other relevant factors on a long term basis.

4) Expected Employer's contribution in next year Rs. 1,800 (Previous year Rs. 2,000).

5) Salary escalation rate is 12 % for first 3 years and 10.50% There after.


Dec 31, 2009

(Currency : Indian Rupees, OOP) 2009 2008

1. Contingent liabilities not provided for

a) Claims against the Company not acknowledged as debts 19,278 1,015

b) Excise duty matters 8,606 6,057

c) Income tax matters 8,234 8,076

d) Sales tax matters 37,905 32,384

e) Guarantee in favour of Gujarat Industrial Development Corporation 1,224 1,224

2. Employee benefits :

a) Defined benefit plan (Gratuity)

The Company operates a gratuity plan wherein every employee is entitled to the benefit based on last drawn salary for each completed year of service. The same is payable on termination of service or retirement whichever is earlier. The benefit vests after five years of continuous service. The same is funded with the Life Insurance Corporation of India.

b) Defined benefit plan (Cash rewards at retirement)

As per the plan, at the time of normal retirement, Rs. 1 is payable to employees for each year of service rendered. The scheme is unfunded.

c) Defined contribution plans

Amount of Rs 10,634 (previous year: Rs. 9,797) is recognised as an expense and included in the Contributions to provident and other fundsunder note no 14

3. Segment reporting

The Company has disclosed business segments as the primary segment. Segments have been identified by the management taking into account the nature of products, manufacturing process, customer profiles, risk and reward parametersand other relevant factors.

The Companys operations have been classified into two primary segments, "Electrical Insulations" and "Engineering and Electronic Resins and Materials". Segment assets include all operating assets used by the business segment and consist primarily of fixed assets, debtors and inventories. Segment liabilities primarily include creditors and other liabilities. Assets and liabilities that cannot be allocated between the segments are shown as a part of unallocable assets and liabilities.

Secondary segments have been identified with reference to geographical location of the customers. The Company has identified India and outside India as the two geographical segments for secondary segmental reporting. Geographical sales are segregated based on the location of the customer who is invoiced. Assets other than receivables used in the Companys business or liabilities contracted have not been identified to any of the reportable geographical segments, as these are used interchangeably between geographical segments. All assets other than receivables are located in India. Similarly, capital expenditure is incurred towards fixed assets in India.

4. Related party disclosures

4.1 A. List of related parties & relationship

SKion GmbH Holding company of ALTANA AG

ALTANA AG Holding company of Altana Chemie GmbH

ALTANA Chemie GmbH Holding company of ELANTAS GmBH

ELANTAS GmbH Holding company (88.55%)

BYK-Chemie GmbH Fellow Subsidiary

ELANTAS Beck GmbH Fellow Subsidiary

ELANTAS UK Ltd. Fellow Subsidiary

ELANTAS PDG Inc. Fellow Subsidiary

ELANTAS Deatech Sri Fellow Subsidiary

ELANTAS Tongling Co Ltd Fellow Subsidiary

ELANTAS Zhuhai Co., Ltd. Fellow Subsidiary

ELANTAS Isolantes Electricos Do Brasil LTDA Fellow Subsidiary

BYK Chemie Asia Pacific PTE Ltd Fellow Subsidiary

5. Management believes that the Companys international transactions with related parties post March 2009 (last period upto which an Accountants report has been submitted as required under the Income tax Act, 1961) continue to be at arms length and that the transfer pricing legislation will not have any impact on these financial statements, particularly on the amount of tax expense and that of provision for taxation.

6. The previous years figures have been regrouped / reclassified wherever necessary to conform to the current years classification.

 
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