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Notes to Accounts of Gujarat Borosil Ltd.

Mar 31, 2018

Note - 1 Provisions

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

Note- 2 The settlement with Worker''s Union expired on 31st December, 2009 and 31st December, 2015, the Company has signed settlement agreement with workers on 21st March, 2013 and 20th August, 2016. The wages payable as per the settlement agreement to workers who have still not accepted the settlement amount from 1st January, 2010 to 31st March, 2018 amounts to Rs. 248.14 Lacs (Previous Year Rs. 216.32 Lacs), which have provided in the books of accounts.

Note- 3 The Company was carrying a portion of items of certain Property, Plant and Equipment of Sheet Glass plant which were sold/discarded in 2013-14. As one of the buyer who had agreed to lift this portion of Property, Plant and Equipment and had given security deposit failed to perform the contract, the Company has finally sold the same during the year. Deposit received from the earlier buyer is lying in liabilities pending litigation.

Previous year the fair value of the above was determine using bidding method. This is level 2 measurement as per the fair value hierarchy Note - 42 Company had filed application for exemption for electricity duty on power used in Solar glass plant.

The exemption has been partially granted and the same has been accounted. However, exemption in respect of electricity used from Captive Power Plant in the solar glass plant is pending to be disposal and accounting of the same will be done on disposal of said application.

Note - 4 Related party disclosure

In accordance with the requirements of Ind AS 24, on related party disclosures, name of the related party, related party relationship, transactions and outstanding balances including commitments where control exits and with whom transactions have taken place during reported periods, are as detail below:

5. List of Related Parties :

a) Associate Companies

Borosil Glass Works Limited

(25.25% of the equity share of the Company)

b) Fellow subsidiaries

Hopewell Tableware Private Limited Klasspack Private Limited

c) Key Management Personnel

Mr. B. L. Kheruka - Chairman. (Non-Executive Director)

Mr. Rajesh Chaudhary - Whole-time Director (upto 31st March, 2018)

Mr. Sunil Kumar Roongta (Chief Financial Officer)

Mr. Kishor Talreja (Company Secretary)

d) Relative of Key Management Personnel

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

Cycas Trading LLP Vyline Glass Works Limited Window Glass Limited Borosil Foundation Chotila Silica Pvt. Ltd.

43.3 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.

Note 6 - Fair Values

44.1 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 recognised in the financial statements.

44.2 Fair Valuation techniques used to determine fair value

The Company maintains procedures to value its 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 cash and cash equivalents, other bank balances, trade receivables, trade payables, current loans, current borrowings, deposits and other current 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 Security Deposits and Margin money are approximate at their carrying amount due to interest bearing features of these instruments.

iii) Fair values of mutual fund are derived from published NAV (unadjusted) in active markets for identical assets.

44.3 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 maximise 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.

The following table provides hierarchy of the fair value measurement of Company''s asset and liabilities, grouped into Level 1 (Quoted prices in active markets), Level 2 (Significant observable inputs) and Level

7 (Significant unobservable inputs) as described below:

* Considered as book value as per latest financial statements of the investee and no material impact on fair valuation

Note 8. Financial Risk Management objective 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, analysed, 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.

9. 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 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 analyses relate to the position as at 31st March 2018 and 31st March 2017.

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. This is based on the financial assets and financial liabilities held as at 3151 March, 2018 and 31st March, 2017.

(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 regularly reviews and evaluates exchange rate exposure arising from foreign currency transactions.

The following table demonstrates the sensitivity in the USD and EURO to the Indian Rupee with all other variables held constant. The impact on the Company’s profit before tax due to changes in the fair values of monetary assets and liabilities is given below:

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. The Company having short term borrowings in the form of buyers credit and working capital facility. There is a fixed rate of interest in case of buyers credit hence, there is no interest rate risk associated with the borrowings. The Company is exposed to interest rate risk associated with working capital facility due to floating rate of interest.

The table below illustrates the impact of a 2% increase in interest rates on interest on financial liabilities assuming that the changes occur at the reporting date and has been calculated based on risk exposure outstanding as of date. The year end balances are not necessarily representative of the average debt outstanding during the year. This analysis also assumes that all other variables, in particular foreign currency rates, remain constant.

The assumed movement in basis points for interest rate sensitivity analysis is based on the currently observable market environment.

c) Commodity price risk:-

The Company is exposed to the movement in price of key consumption 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.

10. 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 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. 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 any of the 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.

11. 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 and working capital 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.

12. 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.

Note13. - 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 maximise 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.

Note 14.- Segment Information

47.1 The Company is engaged only in the business of manufacture of Flat Glass which is a single segment in terms of Indian Accounting Standard ''Operating Segments (Ind AS-108).

47.3 No single customer has accounted for more than 10% of the Company revenue for the year ended 31st March, 2018 and 31st March 2017.

47.4 No Non-Current Assets of the Company is located outside India as on 31st March, 2018 and 31st March 2017.

Note 48 - Standards issued but not effective :

On March 28, 2018, the Ministry of Corporate Affairs (MCA) has notified Ind AS 115 - Revenue from Contract with Customers and certain amendment to existing Ind AS. These amendments shall be applicable to the Company from April 01, 2018.

a) Issue of Ind AS 115 - Revenue from Contracts with customers

Ind AS 115 will supersede the current revenue recognition guidance including Ind AS 18 Revenue, Ind AS 11 Construction Contracts and the related interpretations. The core principles of Ind AS 115 is that an entity should recognise revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services.

b) Amendment to Existing issued Ind AS

The MCA has also notified certain amendments to the following Accounting Standards:

i. Ind AS 21 - The Effects of Changes in Foreign Exchange Rates

ii. Ind AS 12 - Income Taxes

Applications of the above standards are not expected to have any significant impact on the Company’s financial statements.

Note 15. - The Management and authorities have the power to amend the Financial Statements in accordance with section 130 and 131 of The Companies Act, 2013.

Note 16. - Previous Year figures have been regrouped and reclassified wherever necessary.


Mar 31, 2017

Note 1 SIGNIFICANT ACCOUNTING JUDGEMENTS, ESTIMATES AND ASSUMPTIONS

The preparation of the financial statements requires management to make judgments, estimates and assumptions that affect the reported amounts of revenues, expenses, assets and liabilities, and the accompanying disclosures, and the disclosure of contingent liabilities. Uncertainty about these assumptions and estimates could result in outcomes that require a material adjustment to the carrying amount of assets or liabilities affected in future periods. The key assumptions concerning the future and other key sources of estimation uncertainty at the reporting date, that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year, are described below. The Company based its assumptions and estimates on parameters available when the financial statements were prepared. However, existing circumstances and assumptions about future developments may change due to market changes or circumstances arising that are beyond the control of the Company. Such changes are reflected in the assumptions when they occur.

2 Property, Plant and Equipment and Intangible Assets:

Management reviews the estimated useful lives and residual values of the assets annually in order to determine the amount of depreciation to be recorded during any reporting period. The useful lives and residual values as per schedule II of the Companies Act, 2013 or are based on the Company’s historical experience with similar assets and taking into account anticipated technological changes, whichever is more appropriate.

3 Income Tax:

The Company reviews at each balance sheet date the carrying amount of deferred tax assets. The factors used in estimates may differ from actual outcome which could lead to an adjustment to the amounts reported in the standalone financial statements.

4 Contingencies:

Management has estimated the possible outflow of resources at the end of each annual financial year, if any, in respect of contingencies/claim/litigations against the Company as it is not possible to predict the outcome of pending matters with accuracy.

5 Impairment of financial assets:

The impairment provisions for financial assets are based on assumptions about risk of default and expected cash loss. The Company uses judgment in making these assumptions and selecting the inputs to the impairment calculation, based on Company’s past history, existing market conditions as well as forward looking estimates at the end of each reporting period.

6 Impairment of non-financial assets:

The Company assesses at each reporting date whether there is an indication that an asset may be impaired. If any indication exists, or when annual impairment testing for an asset is required, the Company estimates the asset’s recoverable amount. An asset’s recoverable amount is the higher of an asset’s or Cash Generating Units (CGU) fair value less costs of disposal and its value in use. It is determined for an individual asset, unless the asset does not generate cash inflows that are largely independent to those from other assets or groups of assets. Where the carrying amount of an asset or CGU exceeds its recoverable amount, the asset is considered impaired and is written down to its recoverable amount.

In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset. In determining fair value less cost of disposal, recent market transactions are taken into account. If no such transactions can be identified, an appropriate valuation model is used. These calculations are corroborated by valuation multiples or other available fair value indicators.

7 Defined benefits plans:

The Cost of the defined benefit plan and other post-employment benefits and the present value of such obligation are determined using actuarial valuations. An actuarial valuation involves making various assumptions that may differ from actual developments in the future. These include the determination of the discount rate, future salary increases, mortality rates and attrition rate. Due to the complexities involved in the valuation and its long-term nature, a defined benefit obligation is highly sensitive to changes in these assumptions. All assumptions are reviewed at each reporting date.

8 Recoverability of trade receivable:

Judgements are required in assessing the recoverability of overdue trade receivables and determining whether a provision against those receivables is required. Factors considered include the credit rating of the counterparty, the amount and timing of anticipated future payments and any possible actions that can be taken to mitigate the risk of non-payment.

9 Provisions:

Provisions and liabilities are recognized in the period when it becomes probable that there will be a future outflow of funds resulting from past operations or events and the amount of cash outflow can be reliably estimated. The timing of recognition and quantification of the liability require the application of judgement to existing facts and circumstances, which can be subject to change. Since the cash outflows can take place many years in the future, the carrying amounts of provisions and liabilities are reviewed regularly and adjusted to take account of changing facts and circumstances.

10 Fair value measurement of financial instruments:

When the fair value of financial assets and financial liabilities recorded in the balance sheet cannot be measured based on quoted prices in active markets, their fair value is measured using valuation techniques including the Discounted Cash Flow (DCF) model. The inputs to these models are taken from observable markets where possible, but where this is not feasible, a degree of judgement is required in establishing fair values. Judgements include considerations of inputs such as liquidity risk, credit risk and volatility. Changes in assumptions about these factors could affect the reported fair value of financial instruments.

11 The carrying value (Gross Block less accumulated depreciation) as on 1st April, 2015 of the Property, plant and equipment is considered as a deemed cost on the date of transition.

12 Property, Plant and Equipment includes assets pledged as security (refer note no. 20 and 23).

13 Refer note 37.3 for disclosure of contractual commitments for the acquisition of property, plant and equipment.

14 Details of pre-operative expenditure as a part of capital-work-in-progress.

15 In accordance with the Indian Accounting Standard (Ind AS-36) on “Impairment of Assets”, the management during the year carried out an exercise of identifying the assets that may have been impaired in accordance with the said Ind AS. On the basis of review carried out by the management, there was no impairment loss on property, plant and equipment during the year ended 31st March, 2017.

16 The Carrying value (Gross Block less accumulated depreciation) as on 1st April, 2015 of the Intangible assets is considered as a deemed cost on the date of transition.

Note 17 - Non-Current Financial Assets - Investments

* Swapan Properties LLP (Formerly known as Swapan Properties Pvt. Ltd.) was an associate entity of the Company and the Company was holding 46% interest in it as at 31st March, 2016 and as at 1st April, 2015. On 19th February, 2017, the Company’s interest in Swapan Properties LLP reduced to 18% and accordingly, it is ceased to be associate of the Company.

18 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 set off against the future tax liabilities computed in accordance with the provisions of the Act, other than Section 115JB, in next fifteen years. Based on the future projection of the performance, 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.449.25 Lacs (Previous year Rs.159.34 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. The total MAT credit as at 31st March, 2017 is Rs.608.59 Lacs (Previous year Rs.159.34 Lacs).

19 Basis of valuation refer Accounting policy No 3.4

20 For Inventories Hypothecation as security (refer note no. 20 and 23).

21. Aggregate amount of unquoted Investments is Rs. Nil as at 31st March, 2017, Rs.1492.55 Lacs as at 31st March, 2016 and Rs. 251.10 Lacs as at 1st April, 2015.

Note 22 - Current Financial Assets - Trade Receivable

23. Others includes refund of gas transportation charges (refer Note No.29.1), Duty Draw Back, Insurance and other receivables.

24. Others Includes mainly VAT Refund and other receivables. Note 18 - Equity Share Capital

25. Terms/Rights attached to Equity Shares :

The Company has only one class of shares referred to as equity shares having a par value of '' 5/- per share. Holders of equity shares are entitled to one vote per share. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuring annual general meeting. 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.

26. Nature and Purpose of Reserve

1 Capital Reserve : Capital reserve was created by way of

(i) Subsidy received from State of Gujarat.

(ii) Forfeiture of shares for non payment of allotment money/call money.

The reserve will be utilize in accordance with the provisions of the Companies Act, 2013.

2 Surplus arising on giving effect to BIFR Order

This surplus was recognized in pursuant to implementation of the order of Board for Industrial and Financial Reconstruction (BIFR) in respect of the scheme for the rehabilitation of the company. The reserve will be utilize in accordance with the provisions of the Companies Act, 2013.

3 Securities Premium Reserve

Securities premium reserve was created when shares were issued at premium. The reserve will be utilize in accordance with the provisions of the Companies Act, 2013.

4 Equity Component of Preference shares issued

The difference between the fair value of preference shares issued to the holding Company on the date of Issue and the transaction price is recognized as a deemed equity component by the holding Company.

The fair value of the financial liability has been estimated by considering comparable market interest rates adjusted to the facts and circumstances relevant to the company.

Note 27 - Non Current Financial Liabilities - Borrowings

27.1 a) Foreign Currency Term Loan (including current maturities of long term borrowings) - ECB:

ECB of Rs. 683.97 Lacs as at 31st March, 2017 is secured by way of exclusive first charge on the property, plant and equipment of the Company (present & future) situated at village Govali, Dist Bharuch and further secured by way of charge on current assets of the Company. ECB of Rs.2,021.07 Lacs as at 31st March, 2016 and ECB of Rs.3,007.31 Lacs as at 1st April, 2015 were secured by way of mortgage of all the property, plant and equipment of the Company both present and future, ranking paripassu and by way of hypothecation of all the moveables (save and except book debts) present and future, subject to prior charges created in favor of Company’s bankers for working capital facilities. ECB of Rs. 683.97 lacs as at 31st March, 2017 is repayable during the year 2017-18. Interest rate of ECB is 445 bps above LIBOR for the financial year 2015-16 and 390 bps above LIBOR for financial year 2016-17.

27.2 a) The 9% Non-Cumulative Non Convertible Redeemable Preference Share shall be redeemable not

later than 7 years from the date of issue with an option to the Company to redeem the same at any time by giving two months prior notice in writing to holders. The terms of Preference shares were changed from Cumulative to Non-Cumulative vide special resolution passed by the Shareholders on 26th August, 2015 through Postal ballot.

b) The preference shares have the priority in case of payment of dividend and in case of winding up, repayment of Capital and arrears of dividend.

c) Dividend on Preference Share Capital aggregating to Rs.2791.64 Lacs is in arrear for the period from 17.03.2012 to 26.08.2015.

28 Buyers’ credit is primary secured by charge on the current assets and further secured by all the Property, Plant and Equipment of the Company (Present & Future) situated at Village Govali, Distt- Bharuch and carries Interest @ LIBOR plus range from 0 to 30 BPS.

29 a) Working Capital Facility and Export Packing Credit facility from Banks are secured by Hypothecation on all stock and book debts of the Company and additionally secured by way of second charges on Property, Plant and Equipment of the Company.

b) Interest rate on Working Capital Facility & Export Packing Credit - Base Rate 1% i.e.11.25% and LIBOR plus 3.50%. Respectively.

Note 30 - Current Financial Liabilities - Trade Payables

30.1 Micro, Small and Medium Enterprises under the Micro, Small and Medium Enterprises Development Act, 2006 (MSMED 2006) have been determined based on the information as available with the Company and the details of amount outstanding due to them are as given below:

31. Other Payables mainly includes outstanding liability for expenses and payable to employees. Note 26 - Other Current Liabilities

32. The Company has recognized liabilities based on substantial degree of estimation for Excise Duty payable on clearance of goods lying in stock. The Excise Duty payable on clearance of goods lying in stock as at 31st March, 2016 was of Rs.17.82 lacs (as at 1st April, 2015 of Rs.57.47 lacs) as per the estimated pattern of dispatches. During the year Rs.17.82 lacs (Previous year 2015-16 of Rs.57.47 lacs) was utilized for clearance of goods. Liability recognized under this clause for the year end is Rs.40.85 lacs which is outstanding as on 31st March, 2017. Actual outflow is expected in the next financial year.

33. Miscellaneous income includes a refund of Rs.559.38 lacs from “Gas Authority of India Limited” (GAIL) on account of downward revision in gas transportation charges for the period from November 2008 to March 2016. In 2008 Government of India had constituted Petroleum and Natural Gas Regulatory Board (PNGRB) and empowered them to fix the tariff for gas pipelines. PNGRB based on the information provided by GAIL had sought to revise the charges. GAIL did not accept the charges fixed by PNGRB and the matter went to Appellate Tribunal. Gail has now revised transportation charges w.e.f November 2008 after decision of the Appellate Tribunal and raised Debit Note /Credit Note to the concerned customers.

34. Above includes, Interest of Rs.12.77 Lacs on late payment of Advance Tax. Note 33 - Depreciation and Amortization Expenses

Note No. 34.1 - 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.22.52 Lacs (Previous Year Rs.3.27 Lacs).

(b) Expenditure related to Corporate Social Responsibility is Rs.15.00 Lacs (Previous Year Rs.3.30 Lacs) and Rs.7.52 lacs (Previous Year Nil) remained unspend.

Company had filed legal case in Amsterdam District court against one of its export debtors. The decision by the court in respect of case against directors for their personal liability, which came in favor of Company, was reversed by the Appeal court in August 2014. The debtor filed for bankruptcy and as per the information gathered from the office of liquidators the secured liability of bank is much more than the possible value of assets. In the simultaneous civil suit for recovery filed by Company, the case for the personal liability of directors did not succeed in view of appeal court’s decision and the Court was unable to proceed against the debtor Company, since it was under bankruptcy. Taking into account all the factors and since there was virtually no possibility to recover anything, the entire amount of Rs. 569.26 Lacs outstanding, net of claims has been written off and provision made of similar amount has been written back in the pervious financial year 2015-16.

Note 35 - Contingent Liabilities and Commitments

36. Contingent Liabilities (To the extent not provided for) Claims against the Company not acknowledged as debts

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

38. 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 retrospectively impact of the same and accordingly same amount shown as contingent liability.

Note 39- Employee Benefits

As per Ind AS-19 ‘Employee Benefits’, the disclosure of Employee benefits as defined in the Ind AS are given below:

(a) Defined Contribution Plan:

Contribution to Defined Contribution Plan, recognized as expense for the year are as under:

(b) Defined Benefit Plan:

The employees’ Gratuity Fund is managed by the Birla Sun 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. The obligation for leave encashment is recognized in the same manner as the gratuity.

(e) 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.

The above sensitivity analysis is based on a change in an assumption while holding all other assumptions constant. In practice, this is unlikely to occur, and changes in some of the assumptions may be correlated. In presenting the above sensitivity analysis, the present value of defined benefit obligation has been calculated using the projected unit credit method at the end of reporting period, which is the same as that applied in calculating the defined obligation liability recognized in the balance sheet.

40. Risk exposures

1) Actuarial Risk: This can arise due to one of the following reasons:

Adverse Salary Growth Experience: Salary hikes that are higher than the assumed salary escalation will result into an increase in Obligation at a rate that is higher than expected.

Variability in mortality rates: If actual mortality rates are higher than assumed mortality rate, than the Gratuity benefits will be paid earlier than expected. Since there is no condition of vesting on the death benefit, the acceleration of cash flow will lead to an actuarial loss or gain depending on the relative values of the assumed salary growth and discount rate.

Variability in withdrawal rates: If actual withdrawal rates are higher than assumed withdrawal rate, than the Gratuity benefits will be paid earlier than expected. The impact of this will depend on whether the benefits are vested as at the resignation date.

2) Investment Risk: For funded plans that rely on insurers for managing the assets, the value of assets certified by the insurer may not be the fair value of instruments backing the liability. In such cases, the present value of the assets is independent of the future discount rate. This can result in wide fluctuations in the net liability or the funded status if there are significant changes in the discount rate during the inter-valuation period.

3) Liquidity Risk: Employees with high salaries and long durations or those higher in hierarchy, accumulate significant level of benefits. If some of such employees resign/retire from the company there can be strain on the cash flows.

4) Market Risk: Market risk is a collective term for risks that are related to the changes and fluctuations of the financial markets. One actuarial assumption that has a material effect is the discount rate. The discount rate reflects the time value of money. An increase in discount rate leads to decrease in Defined Benefit Obligation of the plan benefits & vice versa. This assumption depends on the yields on the corporate/government bonds and hence the valuation of liability is exposed to fluctuations in the yields as at the valuation date.

5) Legislative Risk: Legislative risk is the risk of increase in the plan liabilities or reduction in the plan assets due to change in the legislation/regulation. The government may amend the Payment of Gratuity Act thus requiring the companies to pay higher benefits to the employees. This will directly affect the present value of the Defined Benefit Obligation and the same will have to be recognized immediately in the year when any such amendment is effective.

41 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. The insurance company in turn manages these funds as per the mandate provided to them by the trustees and the asset allocation which is within the permissible limits prescribed in the insurance regulations. 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.

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

43 The average duration of the defined benefit plan obligation at the end of the reporting period is 13.79 years (31st March, 2016: 13.40 years).

Note 44 The settlement with Worker’s Union expired on 31st December, 2009 and 31st December, 2015, the company has signed settlement agreement with workers on 21st March, 2013 and 20th August, 2016. The wages payable as per the settlement agreement to workers who have still not accepted the settlement amount from 1st January, 2010 to 31st March, 2017 amounts to '' 216.32 Lacs (Previous Year '' 177.14 Lacs), which have provided in the books of accounts.

Note 45 The Company had sold/discarded certain Property, Plant and Equipment of Sheet Glass plant in the year 2013-14 and accounted for the surplus as income. One of the buyer had agreed to lift the portion of Property, Plant and Equipment of '' 148.49 Lacs and had given security deposit, however the same is not lifted by the buyer and same was carried at sale value in the books of account as other current assets. During the year the Company has measured these Property, Plant and Equipment at fair value and difference between fair value and carrying value amounting to '' 124 Lacs has been charged to statement of Profit and Loss. Deposit received from the buyer is under litigation.

46. The fair value of the above assets is determine using bidding method. This is level 2 measurement as per the fair value hierarchy.

Note 47. Company has filed an application in September 2011 for electricity duty exemption on generation of electricity from captive power plant for use in the Solar glass plant w.e.f. May 2011, which is pending before the Government for disposal as per the direction of the Gujarat High Court to reconsider the same. The Company has also filed application in October, 2014 under the new policy announced in July 2014 in which there is an exemption w.e.f. 1.4.2013 for additional units set up by the Company. The matter is pending and accounting of duty exemption will be done after disposal of the Company’s applications.

48. 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.

49. 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 recognised in the financial statements.

50. Fair Valuation techniques used to determine fair value

The Company maintains procedures to value its 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 cash and cash equivalents, other bank balances, trade receivable, trade payables, current loans, current borrowings, deposits and other current 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 flows 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) Fair values of mutual fund are derived from published NAV (unadjusted) in active markets for identical assets.

iv) Investments in associates are stated at cost.

51 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.

The following table provides hierarchy of the fair value measurement of Company’s asset and liabilities, grouped into Level 1 (Quoted prices in active markets), Level 2 (Significant observable inputs) and Level 3 (Significant unobservable inputs) as described below:

Note 52 :- Financial Risk Management Objective 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, analysed, 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.

53. 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 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 analyses relate to the position as at 31st March 2017, 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. 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 regularly reviews and evaluates exchange rate exposure arising from foreign currency transactions.

The following table demonstrates the sensitivity in the USD and Euro to the Indian Rupee with all other variables held constant. The impact on the Company’s profit before tax due to changes in the fair values of monetary assets and liabilities is given below:

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. The Company having long term borrowings in the form of external commercial borrowings (ECB). Also, the Company having short term borrowings in the form of buyers credit, working capital facility and export packing credit. There is a fixed rate of interest in case of buyers credit and export packing credit and hence, there is no interest rate risk associated with these borrowings. The Company is exposed to interest rate risk associated with working capital facility and external commercial borrowings (ECB) due to floating rate of interest.

The table below illustrates the impact of a 2.0% increase in interest rates on interest on financial liabilities assuming that the changes occur at the reporting date and has been calculated based on risk exposure outstanding as of date. The year end balances are not necessarily representative of the average debt outstanding during the year. This analysis also assumes that all other variables, in particular foreign currency rates, remain constant.

The assumed movement in basis points for interest rate sensitivity analysis is based on the currently observable market environment.

54 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 Group is exposed to credit risk from its operating activities (primarily trade receivables) and from its financing activities, including deposits with banks 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. 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 any of the 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.

55. 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 and working capital 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.

56. 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 57 - Capital Management

For the purpose of Company''s capital management, capital includes issued capital, all other equity reserves and debt. The primary objective of the Company’s capital management is to maximise shareholders value. The group 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.

Note 58 - The Company is engaged only in the business of manufacture of Flat Glass which is a single segment in terms of Indian Accounting Standard ‘Operating Segments (Ind AS-108)’.

59. 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.

60. 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 of its property, plant and equipment and intangible assets as deemed cost on the date of transition to Ind AS for its property, plant and equipment and intangible assets.

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

61 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 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.

62. Reconciliation between profit and other equity as previously reported under previous GAAP and Ind AS for the Year ended 31st March, 2016 and 1st April, 2015.

63. Footnotes to the reconciliation of equity as at 1st April, 2015 and 31st March, 2016 and Profit for the year ended 31st March, 2016.

1 Financial assets and Liabilities:-

Under Indian GAAP, Current investments are carried at lower of cost and market value/NAV, computed individually. Long term investments are carried at cost. Provision for diminution in the value of long term investments is made only if such decline is other than temporary in the opinion of the management. As per Ind AS 109, the company has designated all investments as Fair value through profit or loss (FVTPL) investments except investment in associates. Ind AS requires FVTPL investments to be measured at fair value. At the date of transition to Ind AS, difference between the fair value of the investments and Indian GAAP carrying amount has been recognized in retained earnings. The Company has opted to account for its investment in associates at cost.

Under Indian GAAP, Preference share was treated as share capital. Under Ind AS, the preference share are classified as a financial liability. The liability initially recognized on fair value and considering these shares are issued to the holding company, the difference between the fair value and transaction price as deemed equity contribution by the holding Company. Subsequently, the liability is measured at amortized cost using the effecting interest rate. The impact on this account has been recognized in the reserve on the transition date and the subsequent impact are recognized in the statement of profit and loss and equity.

2 Defined benefit liabilities

Both under Indian GAAP and Ind AS, the company recognized costs related to its post-employment defined benefit plan on an actuarial basis. Under Indian GAAP, the entire cost, including actuarial gains and losses, are charged to statement of profit and loss. Under Ind AS, remeasurements comprising of actuarial gains and losses are recognized immediately in the balance sheet with a corresponding debit or credit to retained earnings through OCI.

3 Deferred Tax

Indian GAAP requires deferred tax accounting using the income statement approach, which focuses on differences between taxable profits and accounting profits for the period / year. Ind AS 12 requires entities to account for deferred taxes using the balance sheet approach, which focuses on temporary differences between the carrying amount of an asset or liability in the balance sheet and its tax base. The application of Ind AS 12 approach has resulted in recognition of deferred tax on new temporary differences which was not required under Indian GAAP. The impact of transitional adjustments for computation of deferred taxes has resulted in charge to Reserves, on the date of transition, with consequential impact to the statement of Profit and Loss and OCI for the subsequent periods.

4 Sale of goods

Under Indian GAAP, sale of goods was presented as net of excise duty. However, under Ind AS, sale of goods includes excise duty. Excise duty on sale of goods is separately presented on the face of statement of profit and loss. Thus sale of goods under Ind AS has increased with a corresponding increase in other expense.

5 Other comprehensive income

Under Indian GAAP, the Company has not presented other comprehensive income (OCI) separately. Hence, Indian GAAP statement of profit and loss is reconciled with statement of profit and loss as per Ind AS.

6 The Ind AS adjustments are either non cash adjustments or are regrouping among the cash flow from operating, investing and financing activities. Consequently, Ind AS adoption has no impact on the net cash flow for the year ended 31st March, 2016 as compared with the previous GAAP.


Mar 31, 2016

Note : 1. Foreign Currency Term Loan - ECB from Banks is secured by way of mortgage of all the fixed assets of the Company both present and future, ranking pari passu and by way of Hypothecation of all the moveable’s (save & except book debts) present & future, subject to prior charges created in favor of Company''s bankers for working capital facilities.

2. Repayment of Foreign Currency Term Loan - ECB due within one year is Rs.1321.35 Lacs shown under Other Current Liabilities.

3. Foreign Currency Term Loan - ECB is repayable in 10 half yearly structured installments from October 2012

4. Interest rate of Foreign Currency Term Loan - ECB is 445 bps above Libor.

5.- Notes related to Corporate Social Responsibility expenditure:

(a) Gross amount Rs.3.27 Lacs required to be spent by the company during the year.

(b) Amount spent during the year Rs.3.30 Lacs and Nil remained unspent.

28. 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 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 performance, 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.159.34 Lacs (Previous year Rs.Nil) 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.

* In view of change in the limit by Bonus (Amendment) Act, 2015, the company has made provision for bonus w.e.f. 1.4.2015 based on revised limits. However, no provision has been made for 2014-15 as the applicability of the revision with retrospective effect has been challenged in Honourable High Court of Kerala by some parties and stay has been granted on its retrospective operation.

B. Appeal filed by Excise department before CESTAT in 2010 against excise refund given for March 1996 to September 1999 and the appeal filed before Commissioner (Appeal) in 2009 against interest thereon allowed to the Company is pending for hearing.

6. As per revised Accounting Standard-15 ‘Employee Benefits’, the disclosure of Employee benefits as defined in the Accounting Standard are given below:-

The contribution to provident fund is made to respective Regional Provident Fund Managed by Provident Fund Commissioner.

Defined Benefit Plan:

The Employees gratuity Fund Scheme is managed by Birla Sun Life Insurance Corporation. 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. The obligation for leave encashment is recognized in the same manner as the gratuity.

Leave Encashment (Unfunded):

In accordance with revised AS-15 ‘Employee Benefits’, the company has provided the liability on actuarial basis.

7.. The estimated amount of contracts remaining to be executed on capital account and not provided for Rs.345.83 Lacs (net of advances- Rs.236.66 lacs). Previous year Rs.125.97 Lacs (Net).

8. The Company had filed legal case in Amsterdam District court against one of its export debtors. The decision of court in the case against directors for their personal liability which came in favor of the Company was reversed by the Appeal court in August 2014. The debtor filed for bankruptcy and as per the information gathered from the office of liquidators the secured liability of bank is much more than the possible value of assets. In the simultaneous civil suit for recovery filed by the Company, the case for the personal liability of directors did not succeed in view of appeal court’s decision and the Court was unable to proceed against the debtor Company since it was under bankruptcy. Taking into account all the factors and since there was virtually no possibility to recover anything, the entire amount of Rs.569.25 Lacs outstanding, as per books, net of claims has been written off in the accounts and the provision made for similar amount in 2014-15 has been written back. Necessary information has been submitted to RBI through Bank.

9.. No dues and unpaid balance at the end of the year payable to parties falling within the definition of entities under the Micro, Small and Medium Enterprises Development Act, 2006. There were also not claim for Interest on dues payment

10. The settlement with Worker’s Union expired on 31st December, 2009; Company has signed new settlement with workers on 29/03/2013 w.e.f. January 2010. The lump sum and wage increase effective January 2013 payable to workers who have still not accepted the settlement amounting to Rs.171.44 Lacs is lying in accounts as on 31.03.2016 (Including Rs.33.02 Lacs provided for the year).

11. The current settlement with Worker’s Union expired on 31st December, 2015. No provision has been made in this regard pending any settlement, as amount is unascertainable.

12. The Company had sold/discarded certain plant and machinery of Sheet Glass plant in the year 2013-14 and accounted for the surplus as income. A portion of these fixed assets amounting to Rs.148.49 Lacs not lifted by the buyer are carried in the accounts at the sales value. The buyer has disputed forfeiture of deposit and matter is in Court. Shortfall, if any in realization will be accounted for after further development in court case.

13. The Company’s application filed in September 2011 for electricity duty exemption w.e.f. May 2011 on generation of electricity from captive power plant for use in the Solar glass plant is pending before the Government for disposal as per the direction of the Gujarat High Court to reconsider the same. Under the old policy the exemption is available for new units/undertakings. The Company has also filed application in October, 2014 under the new policy announced in July 2014 in which there is an exemption w.e.f. 1.4.2013 for additional units set up by existing units. The matter is pending and accounting of duty exemption will be done after disposal of the Company’s applications.

14. Related party disclosures under accounting standard 18:

(A) list of related parties:

Associate Companies

1. Borosil Glass Works Ltd.

2. Borosil International Ltd.

3. Broadfield Holdings Ltd.

4. Cycas Trading LLP

5. Fennel Investment & Finance Pvt. Ltd.

6. Gujarat Fusion Glass LLP

7. Sonargaon Properties LLP

8. Swapan Properties LLP

9. Vyline Glass Works Ltd.

10. Window Glass Ltd.

11. Croton Trading Private Limited (Promoter Company w.e.f. 28-12-2015)

12. Hopewell Tableware Private Limited

Key Managerial Personnel

Mr. B.L.Kheruka - Chairman

Mr. Ashok Jain, Whole-time Director (up to 20-02-2016)

Mr. Sunil Roongta - GM- Commercial & CFO

15. The Company’s business activity falls within a single primary business segment viz. Manufacture of Flat glass. As such, there are no separate reportable segments as per Accounting Standard 17.

16. Financial and Derivative Instruments:

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

17. Previous year figures have been regrouped and rearranged wherever necessary.


Mar 31, 2015

In March 2012, the Company had issued 90,00,000 9% Cumulative Non-Convertible Redeemable Preference Shares of Rs.100/- each fully paid up.

Preference Shares carry a dividend of 9% , when declared by the company and redeemed at the end of seven years i.e.. on 16.03.2019.

The Preference shareholder has acquired voting rights due to non-payment of dividend for two years.

The holder of Preference Shares will have priority over Equity Shares in the payment of dividend and repayment of capital, in the event of liquidation of the company before redemption of Preference Shares,

Note : 1. Foreign Currency Term Loan - ECB from Banks is secured by way of mortgage of all the fixed assets of the Company both present and future, ranking pari passu and by way of Hypothecation of all the moveables (save & except book debts) present & future, subject to prior charges created in favor of Company's bankers for working capital facilities. The same is further secured by personal guarantee of two directors.

2. Repayment of Foreign Currency Term Loan - ECB due within one year is Rs 1100.25 Lacs shown under Other Current Liabilities.

3. Foreign Currency Term Loan - ECB is repayable in 10 half yearly structured installments from October 2012

4. Interest rate of Foreign Currency Term Loan - ECB is 445 bps above Libor.

Note : 1. Working Capital Facility from Banks is secured by Hypothecation on all stocks and book debts of the Company and additionally secured by way of a second charge on Fixed Assets of the Company.

The said facilities are further secured by personal guarantee of two Directors.

2. Interest rate on Working Capital Facility is BOB Base Rate 3% i.e.13.25%.

Note 1: Capital Work in Progress includes Capital goods inventory of Rs. 139.35 Lacs (Previous year 143.86 lacs).

2: Additions include Rs. 49.05 Lacs capitalised on account of exchange rate difference (Net) on foreign currency loan used for financing fixed assets.

3. Depreciation for the year for previous year increased by Rs 55.38 lacs due to change in useful life -Refer note no 33.

* Store consumption includes stores items W/off of Rs. 147.07 lacs Less provided already Rs. 124.05 Lac Net Rs. 23.02 Lacs.

5. No provision for MAT has been made in view of set off permitted against brought forwarded book loss.

6. A. Contingent liabilities not provided for:-

Rs. In Lacs

S. Particulars 2014-15 2013-14 No.

a) Letters of Credit outstanding

* Local 104.00 85.00

* Foreign 270.53 54.40

b) Claims against the Company not acknowledged as debt 32.67 23.17

c) i) Excise matters relating to valuation in appeal before Supreme Court From February 1999 to June 2005 455.07 455.07

Equivalent amount of penalty, interest 797.06 797.06

The company is legally advised that the disputed demands will not be sustained in view of :-

a) The judgment by supreme Court dismissing appeal of the department for the period July 2006 to June 2007 in its own case

b) Favorable decision of Commissioner (Appeal) for the period July 2005 to June 2006, and

c) Various legal pronouncements in similar other matters.

A sum of Rs. 589.33 Lacs paid under protest in respect of i) above dispute demand has been shown as advances recoverable.

ii) Excise matters relating to denial of Cenvat Credit on certain inputs in appeal before Commissioner-Surat From August 2009 to January 2011. NIL 19.33

Equivalent amount of penalty. NIL 19.33

d) Income tax matters in Appeal filed by the Company before

i. CIT-Appeals in respect of assessment year 1997-98 on account of 347.65 344.22 penalty Rs.41.38. Lacs.

ii. CIT-Appeal in respect of assessment year 2011-12 and 2012-13 On account of disallowances / additions totaling to Rs.638.51 Lacs.

iii. Gujarat High Court in respect of assessment year 2003-04 on account of carry forward of unabsorbed depreciation Rs.246.78.

iv. ITAT, Ahmedabad in respect of A.Y. 2010-11 on account of Disallowances totaling to Rs. 15.76 Lacs.

(previous year total disallowances/ additions of Rs. 932.34 Lacs)

e) Income tax matters in Appeal filed by the department before Tribunal in respect of assessment year 2005-06, 2008-09, 2009-10 and 2010-11. 296.35 290.52

f) Appeal filed by the Company before Jt. Commissioner, Vadodara in 291.87 291.87

Sales tax matter relating to purchase of fuel and Additional Tax for financial 258.97 258.97 years 2000-01, 2002-03 and 2004-05 Interest and penalty thereon.

No liability is expected in view of judicial pronouncement by High Court in similar matter of other Companies.

g) Service Tax matters in appeal before Comm. (Appeal)/CESTAT for the 0.74 18.33 financial years 2007-08 to 2011-12. 0.74 14.85

Interest & Penalty thereon.

h) Disputed amount of gas transportation charges including interest - matter pending in appeal before High Court 44.13 44.13

i) Bill discounted with banks (Since realized) 113.23 192.84

J) Bank Guarantees 164.05 164.05

7. Appeal filed by Excise department before CESTAT in 2010 against excise refund given for March 1996 to September 1999 and the appeal filed before Commissioner (Appeal) in 2009 against interest thereon allowed to the Company are pending for hearing.

8. As per revised Accounting Standard-15 'Employee Benefits', the disclosure of Employee benefits as defined in the Accounting Standard are given below:-

Defined Contribution plan:

Contribution to defined contribution Plan, recognized as expense for the year are as under:-

Rs. In Lacs Particulars 2014-15 2013-14

Employer's Contribution to Provident Fund 67.55 62.38

The contribution to provident fund is made to respective Regional Provident Fund Managed by Provident Fund Commissioner. From March 2014 the contribution for all the excluded employees also is made with Regional Provident Fund Commissioner (RPFC). Company's request to RPFC to allow transfer of accumulated amounts in fund managed by them has been allowed and the funds have been transferred to RPFC and credited to respective employees.

Defined Benefit Plan:

The Employees gratuity Fund Scheme is managed by Birla Sun Life Insurance Corporation. 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. The obligation for leave encashment is recognized in the same manner as the gratuity.

Leave Encashment (Unfunded):

In accordance with revised AS-15 'Employee Benefits', the company has provided the liability on actuarial basis.

As per the actuarial certificate (on which auditors have relied), the details of the employee benefits plan - Leave Encashment are:

9. The estimated amount of contracts remaining to be executed on capital account and not provided for Rs.148.60 Lacs (net of advances- Rs125.97 lacs). Previous year Rs. 17.28 Lacs (Net).

10. The Company has filed legal case in Amsterdam District court against one of its export debtors. The decision of court in the case against directors for their personal liability which came in favor of the Company was reversed by the Appeal court in August 2014. The debtor has filed for bankruptcy and as per the information gathered from the office of liquidators the secured liability of bank is much more than the possible value of assets. In the simultaneous civil suit for recovery filed by the Company the court decided to hear only the personal liability matter in view of bankruptcy of the debtor and the decision of the hearing is awaited. Taking into account all the factors it has been decided to make a provision for the entire amount due as the same is doubtful of any recovery. The entire amount of Rs 569.25 Lacs outstanding, as per books, net of claims has been treated as doubtful and a provision of equal amount has been made in the accounts for the year after compliance of FEMA provisions the debt will be written off.

11. Effective from 1st April, 2014, the Company has provided depreciation with reference to the useful life of tangible assets as specified in Schedule II to the Companies Act, 2013. Accordingly, the carrying amount, net of residual value , as on that have been depreciated over the revised remaining useful life of the respective asset. As a result, the charge of depreciation is higher by Rs 72 lacs for the year. Further, an amount of Rs 38 lacs (net of deferred tax of Rs 17 lacs) on account of depreciation on assets whose useful life is already exhausted as on 1st April 2014 has been adjusted to the opening balance of Loss in the Profit & Loss account.

12. No dues and unpaid balance at the end of the year to falling within the definition of entities under the Micro, Small and Medium Enterprises Development Act, 2006. There were also not claim for Interest on dues payment

13. The settlement with Worker's Union expired on 31st December, 2009; Company has signed new settlement with workers on 29/03/2013 w.e.f. January 2010. The lump sum and wage increase effective January 2013 payable to worker who has still not accepted the settlement amounting to Rs. 144.37 Lacs is lying in accounts as on 31.03.2015 (Including Rs 38.97 Lacs provided for the year).

14. The Company had in the previous year sold/discarded certain plant and machinery of Sheet Glass plant and accounted for the surplus as income. A portion of these fixed assets amounting to Rs148.49 Lacs not lifted by the buyer are carried in the accounts at the sales value. The buyer has disputed forfeiture of deposit and matter is in Court. The company expects to realize the balance amount in full and considers no necessity to make any provision against the same.

15. The Company's application filed in September 2011 for electricity duty exemption w.e.f. May 2011 on generation of electricity from captive power plant for use in the Solar glass plant is pending before the Government for disposal as per the direction of the Gujarat High Court to reconsider the same. Under the old policy the exemption is available for new units/undertakings. The Company has also filed application in October, 2014 under the new policy announced in July 2014 in which there is an exemption w.e.f 1.4.2013 for additional units set up by existing units. Hearings are in progress and accounting of duty exemption will be done after disposal of the Company's applications.

16. Related party disclosures under accounting standard 18:

(A) list of related parties:

Associate Companies

1. Borosil Glass Works Ltd. 2. Borosil International Ltd. 3. Broad field Holdings Ltd. 4. Cycas Trading LLP 5. Fennel Investment & Finance Pvt. Ltd. 6. Gujarat Fusion Glass LLP 7. Sonargaon Properties LLP 8. Swapan Properties LLP 9. Vyline Glass Works Ltd. 10. Window Glass Ltd.

Key Managerial Personnel

Mr. B.L.Kheruka Mr. Ashok Jain, Whole-time Director Mr. Sunil Roongta, CFO Mr. Kishor Talreja, Company Secretary

Other parties related to Key Personnel Mrs. Kiran Kheruka

17. The Company's business activity falls within a single primary business segment viz. Manufacture of Fl glass. As such, there are no separate reportable segments as per Accounting Standard 17.

18. Quantitative details of raw materials which individually account for 10% or more of the total value of raw materials consumed:

19. Value of Imported and Indigenous Raw Material and Components consumed percentage of each to total consumption

20. Previous year figures have been regrouped and rearranged wherever necessary.


Mar 31, 2014

1. A. a) Re-opening notice for Income tax for assessment year 2008-09 was challenged by Company in Gujarat High Court by Special Civil Application and Stay was received by the Company. In similar matter for assessment year 2007-08 the High Court has admitted Review Petition of department as the matter was decided in favor of Company. Further hearings are pending.

b) Appeal filed by Excise department before CESTAT in 2010 against excise refund given for March 1996 to Sept 1999 and the appeal filed before Commissioner (Appeal) in 2009 against interest thereon allowed to the Company are pending for hearing.

2. The estimated amount of contracts remaining to be executed on capital account and not provided for Rs. 2323 thousands (net of advances- Rs. 1728 thousands). Previous year Rs. 11355 thousands (Net).

3. An award was received in the arbitration matter with GAIL India Ltd. in an earlier year involving disputes regarding

i) revision in Capital cost of pipe line by Rs. 2334 thousands and consequent higher transportation charges; and

ii) additional transportation charges from January, 1997 under the supplementary agreement for additional quantity of Gas which was not recognized as income as the award was not accepted by GAIL. However as a part of revision in transportation/compression charges done by GAIL for various customers, a sum of Rs. 38546 thousand received by the Company in the F.Y 2007-08 was shown as exceptional income. The balance relief as per award has not been accounted. The appeal filed by GAIL in the District Court Bharuch against the majority Arbitration award has been decided against the Company and an appeal filed by Company before Gujarat High Court was admitted on 29/03/2012 and is pending hearing.

4. No dues and unpaid balance at the end of the year to falling within the definition of entities under the Micro, Small and Medium Enterprises Development Act, 2006. There were also no claims for Interest on dues payment.

5. The Company has filed legal case in Amsterdam District court against one of its export debtors and has been able to receive orders attaching personal properties of the Directors. The civil suit for recovery of the outstanding is going on in the court. The amount of Rs. 56925 thousands due, as per books, net of claims has been shown as doubtful but recoverable pending outcome of the recovery suit. The amount has been stated at the exchange rate prevailing on 31.3.2013.

6. The settlement with Worker''s Union expired on 31st December, 2009. Company has signed new settlement with workers on 29/03/2013 w.e.f. January 2010. The lump sum and wage increase effective January 2013 payable to workers who have still not accepted the settlement amounting to Rs.6538 thousands is lying in accounts as on 31.3.2013. A further sum of Rs. 4457 thousands payable for this year on this account has been provided in the accounts.

7. The Company was making PF contribution for excluded employees to a Trust until February 2014. The Trust was recognized by Income tax authorities. In view of the deadline requiring the trust to obtain approval of Regional Provident Fund Commissioner (RPFC) nearing expiry and considering that the fund was catering to a small number of employees the Company has been advised that obtaining the approval was extremely unlikely and may result in withdrawal of recognition and the employees will be deprived of tax benefit, hence it was decided to wind up the Trust & to liquidate all investments of the Trust ie. Securities / Mutual Funds units / Special Deposits be sold in the Market and deposit the said amount with RPFC in the account of the respective employees and start making contribution of March 2014 salary with RPFC. In view of the depressed prices of Govt securities due to prevailing high interest rates, the sale amount realized on sale of securities was lower than the holding value. The shortfall amounting to Rs 2520 thousands has to be made good by the Company and has been provided in the accounts for the year and charged as contribution to PF.

8. The Company has sold/discarded certain plant and machinery of Sheet Glass plant and accounted profit of Rs. 47292 thousands arising therefrom as exceptional income. The remaining part of the fixed assets of sheet glass plant is in use and the value is higher than the book value. Hence no impairment loss has been provided for in terms of Accounting standard AS-28 of the ICAI.

9. The Company has applied for electricity duty exemption on generation of electricity from captive power plant which is used in the Solar glass plant. Under the policy the exemption is available for new units/ undertakings. The application was rejected without giving sufficient hearing. Company approached Gujarat HC and the matter is now being re-examined by Government of Gujarat as per directions of HC.

10. Related party disclosures under accounting standard 18 :

(A) list of related parties: Associate Companies

1. Borosil Glass Works Ltd.

2. Window Glass Ltd.

3. Swapan Properties LLP

4. Fennel Investment & Finance Pvt. Ltd.

5. Broadfield Holdings Ltd.

6. Sonargaon Properties LLP

7. Gujarat Fusion Glass LLP (w.e.f 3.4.2014)

8. Vyline Glass Works Ltd.

9. Borosil International Ltd.

10. Cycas Trading LLP

Key Managerial Personnel

Mr B.L.Kheruka

Mr. Ashok Jain, Whole-time Director

Other parties related to Key Personnel

Mrs Kiran Kheruka Mrs Pratibha Jain

11. The Company''s business activity falls within a single primary business segment viz. Manufacture of Flat glass. As such, there are no separate reportable segments as per Accounting Standard 17.

12. Previous year figures have been regrouped and rearranged wherever necessary.


Mar 31, 2013

1. No provision for Income Tax/MAT has been made in view of loss for the year.

2. The Company has accounted for estimated credit, towards expected Export Benefits entitlements amounting to Rs.1823 thousands under the head other income in respect of exports. Variation, if any on actual receipt/utilization of licenses will be dealt with in the accounts of that year.

3. The estimated amount of contracts remaining to be executed on capital account and not provided for Rs.14002 thousands (net of advances- Rs. 11355 thousands). Previous year Rs. 98991 thousands (Net).

4. An award was received in the arbitration matter with GAIL India Ltd. in an earlier year involving disputes regarding i) revision in Capital cost of pipe line by Rs. 2334 thousands and consequent higher transportation charges; and ii) additional transportation charges from January, 1997 under the supplementary agreement for additional quantity of Gas which was not recognized as income as the award was not accepted by GAIL. However as a part of revision in transportation/compression charges done by GAIL for various customers, a sum of Rs. 38546 thousand received by the Company in the F.Y 2007-08 was shown as exceptional income. The balance relief as per award has not been accounted. The appeal filed by GAIL in the District Court Bharuch against the majority Arbitration award has been decided against the Company and an appeal filed by Company before Gujarat High Court was admitted on 29/03/2012 and is pending hearing.

5. The settlement with Worker''s Union expired on 31st December, 2009. Company has signed new settlement with workers on 29/3/2013 w.e.f. January 2010 and lump sum and wage increase effective January 2013 for amounting to Rs. 9167 thousands has been provided in accounts.

6. A sum of Rs. 68 thousands was due and unpaid at the end of the year to M/s. Rajnikant & Co. falling within the definition of entities under the Micro, Small and Medium Enterprises Development Act, 2006. However, there were no claims for interest on delayed payments.

7. Related party disclosures under accounting standard 18 :

(A) list of related parties: Associate Companies

1. Borosil Glass Works Ltd.

2. Window Glass Ltd.

3. Swapan Properties LLP

4. Fennel Investment & Finance Pvt. Ltd.

5. Broadfield Holdings Ltd.

6. Sonargaon Properties LLP

7. Gujarat Fusion Glass Ltd.

8. Vyline Glass Works Ltd.

9. Borosil International Ltd.

10. Cycas Trading LLP

Key Managerial Personnel

Mr. B.L.Kheruka

Mr. Ashok Jain, Whole-time Director

Other parties related to Key Personnel

Mrs. Kiran Kheruka Mrs. Pratibha Jain

8. The recoverable value of Fixed Assets of Sheet Glass plant is higher than the book value. Hence no impairment loss has been provided for in terms of Accounting standard AS-28 of the ICAI.

9. The Company''s business activity falls within a single primary business segment viz. Manufacture of Flat glass. As such, there are no separate reportable segments as per Accounting Standard 17.

10. Previous year figures have been regrouped and rearranged wherever necessary.


Mar 31, 2012

1. Fixed Assets are recorded at cost of acquisition (Net of Cenvat) inclusive of related expenses thereon towards putting the assets in to use.

2 (i) Foreign currency transactions are recorded at the exchange rate prevailing on the date of transaction.

(ii) All monetary foreign currency assets/liabilities are translated at the rates prevailing on the date of balance sheet.

(iii) The exchange difference between the rates prevailing on the date of transaction and on the date of settlement as also on translation of monetary items at the end of the year (other than those relating to long term foreign currency monetary items)is recognized as income or expense, as the case may be.

(iv) Exchange Rate differences relating to long term foreign currency monetary items, to the extent they are used for financing the acquisition of fixed assets are added to or subtracted from the cost of such fixed assets and amortized over the residual life of the respective fixed assets.

3. Depreciation on all the fixed assets has been calculated at the SLM rates prescribed in Schedule XIV of the Companies Act, 1956 as per notification dated 16-12-1993 and on adjustments on account of foreign currency fluctuation is being calculated on residual life of respective fixed assets.

4. Income and Expenses are accounted for on accrual basis except interest on delayed payments which is accounted on receipt basis.

5. Investments are classified into current and long term investments. Current investments are stated at lower of cost and fair market value. Long term investments are stated at cost. A provision for diminution is made to recognize a decline, other than temporary, in the value of long term investment.

6. (A) Inventories: are valued as under

Raw Materials - At Cost or net realisable value whichever is lower.

Own Cullet - At Cost or net realisable value whichever is lower.

Stores and Spare Parts - At Cost or net realisable value whichever is lower.

Work in Progress - At Cost or net realisable value whichever is lower.

Finished Goods - At Cost or net realisable value whichever is lower.

Traded Goods - At Cost or net realisable value whichever is lower.

(B) Cost Formula Used : - Weighted average or specific identification as applicable.

Due allowance is estimated and made for defective and Obsolete items wherever necessary.

7. An asset is treated as impaired when the carrying cost of assets exceeds its recoverable value. An impairment loss is charged to the Profit & Loss Account in the year in which an asset is identified as impaired. The impairment loss recognized in prior accounting periods is reversed if there has been a change in the estimate of recoverable amount.

8. (i) Sales are net of Sales tax, return and quantity discounts .

(ii) Sale of Goods is recognized when significant risks and rewards of ownership have passed to the buyer.

9. Cenvat on Raw Materials / Stores is credited to respective purchase account on accrual basis. Accordingly, inventory is valued at net of Cenvat benefits.

10. Liability in respect of gratuity & leave encashment to employees is actuarially assessed as at the Balance Sheet date and the incremental /decremental liability arising on such valuation is provided for Projected Unit Credit Method used as Stipulated in AS-15(Revised 2005) to determine the plan Liability as on Valuation date and current Service Cost.

11. Interest and other costs in connection with the borrowing of the funds to the extent related / attributed to the acquisition / construction of qualifying fixed assets ready for its intended use are capitalised.

12. Provisions involving substantial degree of estimation in measurement are recognized when there is a present obligation as a result of past events and it is probable that there will be an outflow of resources. Contingent liabilities are not recognized but are disclosed in the notes.' Contingent Assets are neither recognized nor disclosed in the financial statements.

13. Lease rentals are expensed with reference to lease terms and other considerations.


Mar 31, 2011

1. No provision for Income Tax/MAT has been made for the year in view of loss.

2. Contingent liabilities not provided for:-

Rs. In thousands

2010-11 2009-10

a) Letters of Credit outstanding 17573 29155

b) Claims against the Company not acknowledged as debt 1209 1209

c) Excise matters relating to valuation in appeal before Supreme Court/Commissioner, excise From February 1999 to June "2006 65551 88071 Equivalent amount of penalty, interest & redemption fine 124750 172270 Excise amount on same basis from 1.7.2007 to 31.3.2011. 48454 51687

The Company is legally advised that the disputed demands will not Be sustained in view of the judgment by Supreme Court dismissing Dept's appeal for the period July 2006 to June 2007 in its own case as also various legal pronouncements in similar other matters.

Further a sum of Rs.68933 thousands paid under protest in respect of above disputed demand have been shown as advances recoverable.

d) Income tax matters in Appeals filed by the Company 17290 15554 before CIT-Appeals in respect of Assessment Years 2008-09 on account of disallowances/additions amounting to Rs.43351 thousands (previous year Rs.45762 thousands) and penalty of Rs.2555 thousands in respect of Assessment year 2005-06.

e) Appeal filed by the Company before Jt commissioner in 29187 29187 Sales tax matter relating to purchase of fuel and Additional Tax for F.Y 2000-01, 2002-03 and 2004-05 Interest and penalty thereon. 25897 25897

No liability is expected in view of judicial pronouncement by High Court in similar matter of other Companies.

f) Bills discounted with banks Nil 3732

3. The Company has accounted for estimated credit, towards expected import benefit amounting to Rs.350 thousands under the head raw materials in respect of import entitlements. Variation, if any on actual utilization of licenses will be dealt with in the accounts of that year.

4. The estimated amount of contracts remaining to be executed on capital account and not provided for thousand Rs.9643 thousands (net of advances of Rs.1970 thousands). Previous year Rs.33285 thousands (Net).

5. An award was received in the arbitration matter with GAIL India Ltd. in an earlier year involving disputes regarding i) revision in Capital cost of pipe line by Rs.2334 thousands and consequent higher transportation charges; and ii) additional transportation charges from January, 1997 under the supplementary agreement for additional quantity of Gas which was not recognized as income as the award was not accepted by GAIL. However as a part of revision in transportation/compression charges done by GAIL for various customers, a sum of Rs.38546 thousand received by the Company in the FY 2007-08 was shown as exceptional income. The balance relief as per award has not been accounted as GAIL has disputed the matter in court.

6. A sum of Rs.2464 thousands was due and unpaid at the end of the year to M/s. Chotila Silica Pvt Ltd, M/s. Bombay Rubber & Carbon works and M/s. Vashi Electricals Pvt Ltd. falling within the definition of entities under the Micro, Small and Medium Enterprises Development Act, 2006. However, there were no claims for interest on delayed payments.

7. Related party disclosures under accounting standard 18: (A) List of related parties:

Associate Companies

1. Borosil Glass Works Ltd.

2. Window Glass Ltd.

3. Swapan Properties Ltd.

4. Fennel Investment & Finance Pvt. Ltd.

5. Broadfield Holdings Ltd.

6. Sonargaon Properties Pvt. Ltd.

7 Gujarat Fusion Glass Ltd.

8 Vyline Glass Works Ltd.

9 Borosil International Ltd.

Key Managerial Personnel

Mr. B. L. Kheruka, Managing Director (Resigned from 17.3.2011, Remuneration upto 15.12.2010) Mr. Ashok Jain, Whole-time Director

Other parties related to Key Personnel

Mrs. Kiran Kheruka

8. a) The Company has started commercial production of low iron textured glass w.e.f. 16th March, 2010. The operations of Sheet glass plant have been suspended w.e.f. 28th July, 2010. Hence the previous year figures are strictly not comparable.

b) The recoverable value of Fixed Assets of Sheet Glass plant is higher than the book value. Hence no impairment loss has been provided for in terms of Accounting standard AS-22 of the ICAI.

c) A sum of Rs.2345 thousands paid under the voluntary retirement scheme to rationalize the workforce has been charged in the Accounts for the year. Compensation payable to remaining workers will be accounted for on settlement (works out to Rs.11660 thousands on the basis of legal provisions).

9. Previous years figures have been regrouped and rearranged wherever necessary.


Mar 31, 2010

1. No provision for Income Tax/MAT has been made for the year in view of loss.

2. Contingent liabilities not provided for:-

Rs. In thousands 2009-10 2008-09 a) Letters of Credit outstanding . 29155 308104 b) Claims against the Company not acknowledged as debt 1209 1183 c) i) Excise matters relating to valuation in appeal -before Supreme Court/ CESTAT From February1999 to June 2007 88071 88071 Equivalent amount of penalty, interest & redemption fine172270 172270

Excise amount on same basis till 31.3.^010. 51687 39209

The Company is legally advised that the disputed demands will not be sustained in view of various legal pronouncements in similar matters and subsequent judgment by CESTAT in own case for. July 2006 to June 2007. Further a sum of Rs 80062 thousands paid under protest in respect of above disputed demand have been shown as advances recoverable.

d) Income tax matters in Appeals filed by the Company in respect of Assessment Years 1998-99 to 2001 -02,2003-04 to 2005-06 on account of disallowances/additions amounting to Rs 45762 thousands (previous year Rs 178835 thousands). 15554 60786

e) Appeal filed by the Company in Sales tax matter relating to purchase of fuel and Additional Tax for F.Y 2000-01,2002-03 and 2004-05 29187 28789 Interest and penalty thereon. 25897 25897 No liability is expected in view of judicial pronouncement by High Court in similar matter of other Companies."

f) Bills discounted with banks (since realised Rs 3003 thousands) 3732 Nil

3. As per revised Accounting Standard-15 Employee Benefits, the disclosure of Employee benefits as defined in the Accounting Standard are given below:

Defined Contribution plan:

Contribution to defined contribution Plan, recognized as expense for the year are as under;

Rs. In Thousands Particulars 2009-2010 2008-2009 Employers Contribution to Provident Fund 5,632 4,965

The contribution to provident fund is made to respective Regional Provident Fund Managed by Provident Fund Commissioner and Gujarat Borosil Employees Provident Fund.

Defined Benefit Plan:

The Employees gratuity Fund Scheme is managedby Birla Sun Life Insurance Corporation. 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. The obligation for leave encashment is recognized in the same manner as the gratuity.

4. The Company has accounted for estimated credit, towards expected import benefit amounting to Rs.1043 thousands under the head raw materials in respect of import entitlements. Variation, if any on actual utilization of licenses will be dealt with in the accounts of that year.

5. The estimated amount of contracts remaining to be executed on capital account and not provided for Rs. 33285 thousands (net of advances of Rs. 1476 thousands). Previous year Rs.386971 thousands (Net).

6. An award was received in the arbitration matter with GAIL India Ltd. involving disputes regarding i) revision in Capital cost of pipe line by Rs 2334 thousands and consequent higher transportation charges; and ii) additional transportation charges from January, 1997 under the supplementary agreement for additional quantity of Gas which was not recognized as income as the award was not accepted by GAIL. However as a part of revision in transportation/compression charges done by GAIL for various customers, a sum of Rs 38546 thousand has been received by the Company in the F.Y 2007-08 which was shown as exceptional income. The balance relief as per award has not been accounted as GAIL has disputed the matter in court.

7. The Company has not received information from creditors regarding their status under the Micro, Small and Medium Enterprises Development Act, 2006 and hence disclosure relating to amount unpaid at the end of the year under this act has not been given. There were no claims for interest on delayed payments.

8. The Company has started commercial production of low iron textured glass w.e.f 16th March, 2010. Hence the profit and loss account has been prepared incorporating operations of new plant from 16th March to 315| March, 2010.

9. The Companys business activity falls within a single primary business segment viz. Manufacture of Flat glass. As such, there are no separate reportable segments as per Accounting Standard 17.

10. Previous years figures have been regrouped and rearranged wherever necessary.

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