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Notes to Accounts of Borosil Glass Works Ltd.

Mar 31, 2017

1. Details of Asset-Liability Matching Strategy

Gratuity benefits liabilities of the company are Funded. There are no minimum funding requirements for a Gratuity benefits plan in India and there is no compulsion on the part of the Company to fully or partially pre-fund the liabilities under the Plan. The trustees of the plan have outsourced the investment management of the fund to an insurance company which are regulated by IRDA. Due to the restrictions in the type of investments that can be held by the fund, it may not be possible to explicitly follow an asset-liability matching strategy to manage risk actively in a conventional fund.

2. The expected payments towards contributions to the defined benefit plan is within one year.

3. The average duration of the defined benefit plan obligation at the end of the reporting period is 5.54 years (31st March, 2016: 5.77 years).

Note 4 - Provisions

Disclosures as required by Ind AS 37 Provisions, Contingent Liabilities and Contingent Assets:-

Note 5- Segment reporting

In accordance with Ind AS 108 ‘Operating Segment’, segment information has been given in the consolidated financial statements, and therefore, no separate disclosure on segment information is given in these financial statements.

(d) Key Management Personnel

Mr. B.L.Kheruka - Executive Chairman.

Mr. Shreevar Kheruka - Managing Director & CEO.

Mr. V.Ramaswami - Whole-time Director.

(e) 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.

Miss Tarini Kheruka - Relative of Mr. B. L. Kheruka & Mr. Shreevar Kheruka.

Miss Sharanya Kheruka - Relative of Mr. B. L. Kheruka & Mr. Shreevar Kheruka.

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

Vyline Glass Works Limited

Sonargaon Properties LLP

Croton Trading Private Limited

Gujarat Fusion Glass LLP

Topgrain Corporate Service Private Limited

Glachem Agents And Traders Private Limited

Borosil Foundation

6. The transactions with related parties are made on terms equivalent to those that prevail in arm’s length transactions. Outstanding balances at year-end are unsecured, unless specified and settlement occurs in cash. This assessment is undertaken each financial year through examining the financial position of the related party and the market in which the related party operates.

7. The Company in an earlier year invested in 9% Cumulative Non-Convertible Redeemable Preference Shares (Now, 9% Non-Cumulative Non-Convertible Redeemable Preference Shares) of Gujarat Borosil Limited (GBL). As GBL has not paid any dividend for more than two years, voting right pursuant to second proviso to sub-section 2 of section 47 of Companies Act 2013 have been vested with the Company. Accordingly the Company enjoys control aggregating to 79.46% of the total voting rights in GBL. In view of the above, GBL becomes subsidiary of the Company.

8. Borosil Afrasia FZE holds 49% of the total voting rights in Borosil Afrasia Middle East Trading LLC. However, 100% of the beneficial ownership vests with the Borosil Afrasia FZE. In view of the above, Borosil Afrasia Middle East Trading LLC is step down subsidiary of the Company.

9. In accordance with the Clause 34(3) of Securities and Exchange Board of India (Listing Obligations & Disclosure Requirements) Regulations, 2015, advance in the nature of loan is/are as under:

(a) The Company has given advances in the nature of Loan as defined in clause 34(3) of Securities and Exchange Board of India (Listing Obligations & Disclosure Requirements) Regulations, 2015 as under;

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

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

Note 10. - Fair Values 43.1 Financial Instruments by category:

Set out below is a comparison by class of the carrying amounts and fair value of the Company’s financial assets and liabilities that are recognized in the financial statements.

11. Fair Valuation techniques used to determine fair value

The Company maintains procedures to value financial assets or financial liabilities using the best and most relevant data available. The fair values of the financial assets and liabilities are included at the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.

The following methods and assumptions were used to estimate the fair values:

i) Fair value of trade receivable, cash and cash equivalents, other bank balances, trade payables, loans, borrowings, deposits and other financial assets and liabilities are approximate at their carrying amounts largely due to the short-term maturities of these instruments.

ii) The fair values of non-current loans and security deposits are calculated based on discounted cash flow using a current lending rate. They are classified as level 3 fair values in the fair value hierarchy due to the inclusion of unobservable inputs including credit risk. The fair values of non-current loan are approximate at their carrying amount due to interest bearing features of these instruments.

iii) The Company uses valuation techniques that are appropriate in the circumstances and for which sufficient data are available to measure fair value, maximizing the use of relevant observable inputs and minimizing the use of unobservable inputs.

iv) Fair values of quoted financial instruments are derived from quoted market prices in active markets.

v) The fair value of investments in unlisted equity shares is determined using a combination of direct sales comparison and income approach.

vi) The fair value of the remaining financial instruments is determined using discounted cash flow analysis and/or direct sales comparison approach.

vii) Equity Investments in subsidiaries and associates are stated at cost.

12. Fair value hierarchy

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

i) Level 1 :- Quoted prices / published NAV (unadjusted) in active markets for identical assets or liabilities. It includes fair value of financial instruments traded in active markets and are based on quoted market prices at the balance sheet date and financial instruments like mutual funds for which net assets value (NAV) is published by mutual fund operators at the balance sheet date.

ii) Level 2 :- Inputs, other than quoted prices included within level 1, that are observable for the asset or liability, either directly (that is, as prices) or indirectly (that is, derived from prices). It includes fair value of the financial instruments that are not traded in an active market (for example, over-the-counter derivatives) is determined by using valuation techniques. These valuation techniques maximize the use of observable market data where it is available and rely as little as possible on the Company specific estimates. If all significant inputs required to fair value an instrument are observable then instrument is included in level 2.

iii) Level 3 :- Inputs for the asset or liability that are not based on observable market data (that is, unobservable inputs). If one or more of the significant inputs is not based on observable market data, the instrument is included in level 3.

13. Description of the valuation processes used by the Company for fair value measurement categorized within level 3

At each reporting date, the Company analysis the movements in the values of financial assets and liabilities which are required to be premeasured or re-assessed as per the accounting policies. For this analysis, the Company verifies the major inputs applied in the latest valuation by agreeing the information in the valuation computation to contracts and other relevant documents.

The Company also compares the change in the fair value of each financial asset and liability with relevant external sources to determine whether the change is reasonable. The Company also discusses of the major assumptions used in the valuations.

For the purpose of fair value disclosures, the Company has determined classes of financial assets and liabilities on the basis of the nature, characteristics and risks of the asset or liability and the level of the fair value hierarchy as explained above.

Note 14:- Financial Risk Management - Objectives and Policies

The Company is exposed to market risk, credit risk and liquidity risk. Risk management is carried out by the company under policies approved by the board of directors. This Risk management plan defines how risks associated with the Company will be identified, analyzed, and managed. It outlines how risk management activities will be performed, recorded, and monitored by the Company. The basic objective of risk management plan is to implement an integrated risk management approach to ensure all significant areas of risks are identified, understood and effectively managed, to promote a shared vision of risk management and encourage discussion on risks at all levels of the organization to provide a clear understanding of risk/benefit trade-offs, to deploy appropriate risk management methodologies and tools for use in identifying, assessing, managing and reporting on risks, and to determine the appropriate balance between cost and control of risk and deploy appropriate resources to manage/optimize key risks. Activities are developed to provide feedback to management and other interested parties (e.g. Audit committee, Board etc.). The results of these activities ensure that risk management plan is effective in the long term.

15. Market risk

Market risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market prices. Market prices comprise of three types of risk: foreign currency rate risk, interest rate risk and other price risks, such as equity price risk and commodity risk. Financial instruments affected by market risk include loans and borrowings, deposits and investments.

The sensitivity analysis is given relate to the position as at 31st March, 2017 and 31st March, 2016.

The sensitivity analysis excludes the impact of movements in market variables on the carrying value of post-employment benefit obligations, provisions and on the non-financial assets and liabilities. The sensitivity of the relevant statement of profit and loss item is the effect of the assumed changes in the respective market risks. The Company’s activities expose it to a variety of financial risks, including the effects of changes in foreign currency exchange rates and interest rates. This is based on the financial assets and financial liabilities held as at 31st March, 2017 and 31st March, 2016.

(a) Foreign exchange risk and sensitivity

Foreign currency risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in foreign exchange rates. The Company''s exposure to the risk of changes in foreign exchange rates relates primarily to the Company''s operating activities. The Company transacts business primarily in USD and Euro. The Company has obtained foreign currency loans and has foreign currency trade payables and receivables and is therefore, exposed to foreign exchange risk. The Company is regularly reviews and evaluates exchange rate exposure arising from foreign currency transactions.

b) Interest rate risk and sensitivity :-

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. During the previous year, the company was having short term borrowings in the form of buyers credit. There was a fixed rate of interest and was payable at the time of repayment of buyers credit and hence, there was no interest rate risk associated with buyers credit borrowings.

c) Commodity price risk:-

The Company is exposed to the movement in price of key traded materials in domestic and international markets. The Company entered into contracts for procurement of material, most of the transactions are short term fixed price contract and hence Company is not exposed to significant risk.

16. Credit risk

Credit risk is the risk that a counter party will not meet its obligations under a financial instrument or customer contract, leading to a financial loss. The Company is exposed to credit risk from its operating activities (primarily trade receivables) and from its financing activities, including deposits with banks, foreign exchange transactions and other financial instruments.

a) Trade Receivables:-

The Company extends credit to customers in normal course of business. The Company considers factors such as credit track record in the market and past dealings with the Company for extension of credit to customers. The Company monitors the payment track record of the customers. Outstanding customer receivables are regularly monitored. The Company evaluates the concentration of risk with respect to trade receivables as low, as its customers are located in several jurisdictions and industries and operate in largely independent markets. The Company has also taken security deposits in certain cases from its customers, which mitigate the credit risk to some extent. No single customer accounted for 10% or more of revenue in any of the years presented. The history of trade receivables shows a negligible provision for bad and doubtful debts. Therefore, the Company does not expect any material risk on account of non-performance by Company’s counterparties.

b) Financial instruments and cash deposits:-

The Company considers factors such as track record, size of the institution, market reputation and service standards to select the banks with which balances are maintained. Credit risk from balances with bank is managed by the Company''s finance department. Investment of surplus funds are also managed by finance department. The Company does not maintain significant cash in hand. Excess balance of cash other than those required for its day to day operations is deposited into the bank.

For other financial instruments, the finance department assesses and manage credit risk based on internal assessment. Internal assessment is performed for each class of financial instrument with different characteristics.

17. Liquidity risk

Liquidity risk is the risk that the Company may not be able to meet its present and future cash and collateral obligations without incurring unacceptable losses. The Company’s objective is to, at all times, maintain optimum levels of liquidity to meet its cash and collateral requirements. The Company relies operating cash flows and short term borrowings in the form of buyers credit to meet its needs for funds. Company does not breach any covenants (where applicable) on any of its borrowing facilities. The Company has access to a sufficient variety of sources of funding as per requirement.

The table below provides undiscounted cash flows towards financial liabilities into relevant maturity based on the remaining period at the balance sheet to the contractual maturity date.

18. Competition and price risk

The Company faces competition from local and foreign competitors. Nevertheless, it believes that it has competitive advantage in terms of high quality products and by continuously upgrading its expertise and range of products to meet the needs of its customers

Note 19 - Capital Management

For the purpose of Company''s capital management, capital includes issued capital, all other equity reserves and debts. The primary objective of the Company’s capital management is to maximize shareholders value. The Company manages its capital structure and makes adjustments in the light of changes in economic environment and the requirements of the financial covenants.

The Company monitors capital using gearing ratio, which is net debt divided by total capital (equity plus net debt). Net debt are non-current and current debts as reduced by cash and cash equivalents, other bank balances and current investments. Equity comprises all components including other comprehensive income.

20. On 23rd March, 2017, the Investment Committee of the Company has decided to sell above mentioned assets and accordingly , these assets are classified as assets held for sale. The expected sale is within 12 months.

21. The assets held for sale are measured at the lower of its carrying amount and fair value less cost to sell, resulting into recognition of a write down ofRs,1,193.20 lacs as an impairment loss on assets held for sale in the statement of profit and loss.

22. Fair valuations are based on valuations performed by an accredited independent valuer, who is a specialist in valuing these types of assets. The fair value of the assets is determined using Comparison Method under the Market Approach. This is level 3 measurement as per the fair value hierarchy. For the purpose of the valuation under comparison method, a comparison is made with similar properties that have recently been sold in the market. The comparable properties are selected for their similarity to the subject property, considering attributes such as age, size, shape, quality of construction, building features, condition, design, gentry, etc. Their sale prices are then adjusted for their difference from the subject property.

Note 23.

The Board of Directors of the Company at its meeting held on 25th November, 2016 approved a Scheme of Amalgamation for merger of Hopewell Tableware Private Limited (Wholly owned subsidiary company), Fennel Investment and Finance Private Limited (associate company) and Vyline Glass Works Limited with the Company. The Scheme is, inter alia, subject to necessary regulatory approvals from concerned authorities, which is under process and will be given effect to upon receipt of such approvals.

Note 24.First time adoption of Ind AS

25. Basis of preparation

For all period up to the year ended 31st March, 2016, the Company has prepared its financial statements in accordance with generally accepted accounting principles in India (Indian GAAP). These financial statements for the year ended 31st March, 2017 are the Company’s first annual Ind AS financial statements and have been prepared in accordance with Ind AS. Accordingly, the Company has prepared financial statements, which comply with Ind AS, applicable for periods beginning on or after 1st April, 2015 as described in the accounting policies. In preparing these financial statements, the Company’s opening Balance Sheet was prepared as at 1st April, 2015, the Company’s date of transition to Ind AS. This note explains the principal adjustments made by the Company in restating its Indian GAAP Balance Sheet as at 1st April, 2015 and its previously published Indian GAAP financial statements for the year ended 31st March, 2016.

26. Exemptions Applied

Ind AS 101 “First-time Adoption of Indian Accounting Standards” allows first-time adopters certain exemptions from the retrospective application of certain requirements under Ind AS. The Company has applied the following exemptions:

1) Property, plant and equipment, intangible assets and investment properties:- The Company has elected to apply Indian GAAP carrying amount as deemed cost on the date of transition to Ind AS for its property, plant and equipment, intangible assets and investment properties.

2) Equity Investments in subsidiaries and associates :- The Company has elected to apply Indian GAAP carrying amount as deemed cost on the date of transition to Ind AS for its equity investments in subsidiaries and associates.

3) Designation of previously recognized financial instruments:- Ind AS 101 allows to designate investments in equity instruments at fair value through OCI on the basis of facts and circumstances at the date of transition to Ind AS. The Company has elected to apply this exemption for its investment in 9% Non-Cumulative Non-Convertible Redeemable Preference Shares of Gujarat Borosil Ltd.

27. Mandatory exceptions applied

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

1) Estimates:- The Company''s estimates in accordance with Ind AS at the date of transition to Ind AS shall be consistent with estimates made for the same date in accordance with Indian GAAP (after adjustments to reflect any difference in accounting policies), unless there is objective evidence that those estimates were in error. Ind AS estimates as at 1st April, 2015 are consistent with the estimates as at the same date made in conformity with Indian GAAP except where Ind AS required a different basis for estimates as compared to the Indian GAAP.

2) Classification and measurement of financial assets:- The Company has classified the financial assets in accordance with Ind AS 109 “Financial Instruments” on the basis of facts and circumstances that exist at the date of transition to Ind AS.

28. Footnotes to the reconciliation of equity as at 1st April, 2015 and 31st March, 2016 and statement of profit and loss for the year ended 31st March, 2016.


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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