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Notes to Accounts of Indo Borax & Chemicals Ltd.

Mar 31, 2018

1. Corporate Information

Indo Borax & Chemicals Limited (the Company) is a public limited company incorporated and domiciled in India. The registered office is at 302, Link Rose, Linking Road, Santacruz (West), Mumbai - 400054. The Company is engaged in manufacturing of Boron products and Lithium.

The company obtains independent valuations for its investment in properties. The best evidence of fair value is current prices in an active market for similar properties. Where such information is not available, the company consider information from a variety of sources including:

* current prices in an active market for properties of different nature or recent prices of similar properties in less active markets, adjusted to reflect those differences.

* discounted cash flow projections based on reliable estimates of future cash flows.

* capitalised income projections based upon a property’s estimated net market income, and a capitalisation rate derived from an analysis of market evidence.

The fair values of investment in properties have been determined by Independent Valuer Thite valuers and engineers Private Limited and Shekhar Thite. The main inputs used are the rental growth rates, expected vacancy rates, terminal yields and discount rates based on comparable transactions and industry data. All resulting fair value estimates for investment properties are included in level 3.

(b) Terms/ rights attached to equity shares

The company has only one class of equity shares having par value of Rs. 10 per share. Each holder of equity shares is entitled to one vote per share. The company declares and pays dividends in Indian rupees. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting.

In the event of liquidation of the Company, the holders of equity shares will be entitled to receive 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.

The distribution will be in proportion to the number of equity shares held by the equity shareholders.

During last five years no shares were alloted without payment being received in cash or as bonus shares, however company were bought back and extinguished 2,72,000 equity shares during the financial year 2014-15.

Amount originally received on foreited shares Rs. 1,39,350/- (Inclusive of share premium) included in Reserve & Surplus

As per records of the Company, including its register of shareholders/ members and other declarations received from shareholders regarding beneficial interest, the above shareholding represents both legal and beneficial ownerships of shares.

Defined Benefit Plan :

Gratuity and Leave Encashment:

The Company makes partly annual contribution to the Employees'' Group Gratuity-cum-Life Assurance Scheme of the Life Insurance Corporation of India, a funded benefit plan for qualifying employees. The scheme provides for lump sum payment to vested employees at retirement, death while in employment or on termination of employment of an amount equivalent to 15 days service for each completed year of service or part thereof depending on the date of joining. The benefit vests after five years of continuous service.

Note 2 - Financial instruments

i) Fair values hierarchy

Financial assets and financial liabilities measured at fair value in the statement of financial position are grouped into three levels of a fair value hierarchy. The three levels are defined based on the observability of significant inputs to the measurement, as follows:

Level 1: quoted prices (unadjusted) in active markets for identical assets or liabilities;

Level 2: The fair value of financial instruments that are not traded in an active market is determined using valuation techniques which maximise the use of observable market data and rely as little as possible on entity specific estimates.

Level 3: inputs for the asset or liability that are not based on observable market data (unobservable inputs).

(ii) Valuation process and technique used to determine fair value

Specific valuation techniques used to value financial instruments include: The use of quoted market prices for investments in shares and mutual funds.

a) The carrying value of trade receivables, securities deposits, insurance claim receivable, loans given, cash and bank balances and other financial assets recorded at amortised cost, is considered to be a reasonable approximation of fair value.

The carrying value of borrowings, trade payables and other financial liabilities recorded at amortised cost is considered to be a reasonable approximation of fair value.

ii) risk management

The Company’s activities expose it to market risk, liquidity risk and credit risk. This note explains the sources of risk which the entity is exposed to and how the entity manages the risk and the related impact in the financial statements:

A) Credit Risk

Credit risk is the risk that a customer or counterparty to a financial instrument will fail to perform or pay amounts due to the Company causing financial loss. It arises from cash and cash equivalents, deposits with banks and financial institutions, security deposits, loans given and principally from credit exposures to customers relating to outstanding receivables. The Company’s maximum exposure to credit risk is limited to the carrying amount of financial assets recognised at reporting date.

The Company continuously monitors defaults of customers and other counterparties, identified either individually or by the Company, and incorporates this information into its credit risk controls. Where available at reasonable cost, external credit ratings and/or reports on customers and other counterparties are obtained and used. The Company’s policy is to deal only with creditworthy counterparties.

In respect of trade and other receivables, the Company is not exposed to any significant credit risk exposure to any single counterparty or any company of counterparties having similar characteristics. Trade receivables consist of a large number of customers in various parts of India. The Company has very limited history of customer default, and considers the credit quality of trade receivables that are not past due or impaired to be good.

The credit risk for cash and cash equivalents, mutual funds, bank deposits, loans and derivative financial instruments is considered negligible, since the counterparties are reputable organisations with high quality external credit ratings.

Company provides for expected credit losses on financial assets by assessing individual financial instruments for expectation of any credit losses. Since the assets have very low credit risk, and are for varied natures and purpose, there is no trend that the company can draws to apply consistently to entire population. For such financial assets, the Company’s policy is to provides for 12 month expected credit losses upon initial recognition and provides for lifetime expected credit losses upon significant increase in credit risk. The Company does not have any expected loss based impairment recognised on such assets considering their low credit risk nature, though incurred loss provisions are disclosed under each subcategory of such financial assets.

B) Liquidity risk

Prudent liquidity risk management implies maintaining sufficient cash and marketable securities and the availability of funding through an adequate amount of committed credit facilities to meet obligations when due. Due to the nature of the business, the Company maintains flexibility in funding by maintaining availability under committed facilities.

Management monitors rolling forecasts of the Company’s liquidity position and cash and cash equivalents on the basis of expected cash flows. The Company takes into account the liquidity of the market in which the entity operates. In addition, the Company’s liquidity management policy involves projecting cash flows in major currencies and considering the level of liquid assets necessary to meet these, monitoring balance sheet liquidity ratios against internal and external regulatory requirements and maintaining debt financing plans.

C) Market risk - foreign exchange

The Company is exposed to foreign exchange risk arising from foreign currency transactions, primarily with respect to US Dollar. Foreign exchange risk arises from recognised assets and liabilities denominated in a currency that is not the Company’s functional currency. The Company, as per its overall strategy company imports raw materials on the basis of market demand. The Company does not use forward contracts and swaps for speculative purposes.

Sensitivity

The sensitivity to profit or loss from changes in the exchange rates arises mainly from financial instruments denominated in USD. In case of a reasonably possible change in INR/USD exchange rates of /- 2% (previous year /-3%) at the reporting date, keeping all other variables constant, there would have been an impact on profits of INR 198.46 Lakhs (previous year INR 89.80 Lakhs).

D) Interest rate risk

i) Liabilities

The Company’s policy is to minimise interest rate cash flow risk exposures on long-term financing. At 31 March 2018, the Company is exposed to changes in market interest rates through bank borrowings at variable interest rates.

Sensitivity

The sensitivity to profit or loss in case of a reasonably possible change in interest rates of /- 50 basis points (previous year: /- 50 basis points), keeping all other variables constant, would have resulted in an impact on profits by INR 0.28 Lakhs

ii) Assets

The Company’s financial assets are carried at amortised cost and are at fixed rate only. They are, therefore, not subject to interest rate risk since neither the carrying amount nor the future cash flows will fluctuate because of a change in market interest rates.

E) Price risk

Exposure from investments in mutual funds:

The Company’s exposure to price risk arises from investments in mutual funds held by the Company and classified in the balance sheet as fair value through other comprehensive income. To manage its price risk arising from investments in mutual funds, the Company invest only in liquid Funds.

Sensitivity

The sensitivity to profit or loss in case of an increase in price of the instrument by 5% keeping all other variables constant would have resulted in an impact on profits by 206.31 Lakhs (previous year INR 243.96 Lakhs).

Exposure from trade payables:

Company generally import on adavance payment or on payment at the time of receipt documents. If there is any transaction of imports on credit basis, then such trnsaction is hedged.

Note 3 - Capital Management:

The Company’ s capital management objectives are: to ensure the Company’s ability to continue as a going concern to provide an adequate return to shareholders

The Company monitors capital on the basis of the carrying amount of equity less cash and cash equivalents as presented on the face of balance sheet.

The Management assesses the Company’s capital requirements in order to maintain an efficient overall financing structure while avoiding excessive leverage. This takes into account the subordination levels of the Company’s various classes of debt. The Company manages the capital structure and makes adjustments to it in the light of changes in the economic conditions and the risk characteristics of the underlying assets.

Note 4 -First Time adoption of IND AS:

These standalone financial statements, for the year ended 31 March 2018, are the first financial statements prepared by the Company in accordance with Ind AS. For periods up to and including the year ended 31 March 2016, the Company prepared its standalone financial statements in accordance with accounting standards notified under section 133 of the Companies Act 2013, read together with paragraph 7 of the Companies (Accounts) Rules, 2014 (‘Indian GAAP’ or ‘Previous GAAP’).

Accordingly, the Company has prepared standalone financial statements which comply with Ind AS applicable for periods ending on 31 March 2018, together with the comparative period data as at and for the year ended 31 March 2017, as described in the summary of significant accounting policies. In preparing these standalone financial statements, the Company’s opening Ind AS balance sheet was prepared as at 1 April 2016, the Company’s date of transition to Ind AS. This note explains the principal adjustments made by the Company in restating its Previous GAAP standalone financial statements, including the balance sheet as at 1 April 2016 and the standalone financial statements as at and for the year ended 31 March 2018.

The Company has applied Ind AS 101 in preparing these first standalone financial statements. The effect of transition to Ind AS on equity, total comprehensive income and reported cash flows are presented in this section and are further explained in the notes accompanying the tables.

A Exemptions and exceptions availed :

Set out below are the applicable Ind AS 101 optional exemptions and mandatory exceptions applied in the transition from Previous GAAP to Ind AS.

A.2 I nd AS mandatory exceptions:

A2.1 Estimates

An entity’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 Previous 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 1 April 2016 are consistent with the estimates as at the same date made in conformity with Previous GAAP.

A2.2 Classification and measurement of financial assets

The classification and measurement of financial assets will be made considering whether the conditions as per Ind AS 109 are met based on facts and circumstances existing at the date of transition.

Financial assets can be measured using effective interest method by assessing its contractual cash flow characteristics only on the basis of facts and circumstances existing at the date of transition and if it is impracticable to assess elements of modified time value of money, i.e., the use of effective interest method, fair value of financial asset at the date of transition shall be the new carrying amount of that asset. The measurement exemption applies for financial liabilities as well.

Applying a requirement is impracticable when the entity cannot apply it after making every reasonable effort to do so. It is impracticable to apply the changes retrospectively if:

a) The effects of the retrospective application are not determinable;

b) The retrospective application requires assumptions about what management’s intent would have

c) The retrospective application requires significant estimates of amounts and it is impossible to distinguish objectively information about those estimates that existed at that time.

A 2.3 De-recognition of financial assets and liabilities

Ind AS 101 requires a first-time adopter to apply the de-recognition provisions of Ind AS 109 prospectively for transactions occurring on or after the date of transition to Ind AS. However, Ind AS 101 allows a first-time adopter to apply the derecognition requirements in Ind AS 109 retrospectively from a date of the entity’s choice, provided that the information needed to apply Ind AS 109 to financial assets and financial liabilities derecognised as a result of past transactions was obtained at the time of initially accounting for those transactions.

Note-1 Proposed dividend

Under Previous GAAP, proposed dividend is recognised as liability in the period to which they relate irrespective of the approval of shareholders.

Under Ind AS, proposed dividend is recognised as liability in the period in which it is declared (approval of shareholders in general meeting) or paid.

Note - 2 Measurement of financial assets at fair value

Under Previous GAAP, current investments were stated at lower of cost and fair value.

Under Ind AS, these financial assets have been classified as Fair Value Through Profit and Loss (‘FVTPL’) on the date of transition to Ind AS and fair value changes after the date of transition have been recognised in the statement of profit and loss.

Note - 3 Measurement of financial assets and liabilties at amortised cost

Under Previous GAAP, the financial assets and financial liabilities were typically carried at the contractual amount receivable or payable.

Under Ind AS, certain financial assets and financial liabilities are initially recognised at fair value and subsequently measured at amortised cost which involves the application of effective interest method. The effective interest rate is the rate that discounts estimated future cash payments or receipts through the expected life of the financial asset or financial liability to the gross carrying amount of the financial asset or financial liability.

For certain financial assets and financial liabilities, the fair value thereof at the date of transition to Ind AS has been considered as the new amortised cost of that financial asset and financial liability at the date of transition to Ind AS. The application of effective interest method results in adjustment to carrying amount of Loans, Other Financial Assets, Borrowing and Other Financial Liabilities.

Note - 4 Fair valuation of derivatives

Under Previous GAAP, foreign exchange derivatives used for hedging purposes were restated at each balance sheet date and the premium was amortised over the term of the forward contract.

Under Ind AS, all derivatives are measured at FVTPL and mark-to-market gains or losses are recorded in the period when incurred.

Note - 5 Remeasurements of post-employment benefit obligations

Under the Previous GAAP, these remeasurements were forming part of the profit or loss for the year.

Under Ind AS, remeasurements i.e. actuarial gains and losses, excluding amounts included in the net interest expense on the net defined benefit liability are recognised in other comprehensive income instead of the statement of profit and loss.

Note - 6 Deferred tax

Under Previous GAAP, deferred tax was accounted as per the income statement approach which required creation of deferred tax asset/ liability on timing differences between taxable income and accounting income. Under Ind AS, deferred tax is accounted as per the Balance Sheet approach which requires creation of deferred tax asset/ liability on temporary differences between the carrying amount of an asset/ liability in the Balance Sheet and its corresponding tax base. The adjustments in equity and net profit, as discussed above, resulted in additional temporary differences on which deferred taxes are calculated.

Note - 7 Business promotion and discount expenditure

On certain sale transactions, if a particular threshold is met, the Company gives a free gift. Under Previous GAAP, revenue is recorded at the total amount received and the cost of the free gift is recognised as an expense.

Under Ind AS, the value of the free gift is adjusted from revenue.

Note 8: Other comprehensive income

Under Ind AS, all items of income and expense recognised in a period should be included in profit or loss for the period, unless a standard requires or permits otherwise. Items of income and expense that are not recognised in the statement of profit and loss but are shown in the statement of profit and loss as ‘other comprehensive income’ includes remeasurements of defined benefit plans. The concept of other comprehensive income did not exist under Previous GAAP.

Note 9 : Micro, Small and Medium Enterprises

Information as required to be furnished as per section 22 of the Micro, Small snd Medium Enterprises Development (MSMED) Act,2006 for the year ended 31 March 2017 is not given as company has not received any intimation from vendors regarding the status of their registration under the MSMED Act,2006.

5 Note 5 - Commitment and Contingent Liabilty:

a) In 1992, STC of India Ltd had claimed for Rs. 9.03 Lakhs towards price difference & others, against this, Honourable Bombay High Court ordered Company to give bank quarantee of Rs. 1.65 Lakhs (Previous year Rs. 1.65 Lakhs)

b) Balance instalment towards work - in - progress of Rs. 2086.06 Lakhs, payable on the basis of various stages of completion of project over the period of five years.

6 Note 6 - Corporate Social Reponsibility:

The Company has incurred INR 29.10 lakhs (previous year INR 31.68 Lakhs) towards Social Responsibility activities. It is included in in the Statement of Profit and Loss. Further, no amount has been spent on construction / acquisition of an asset of the Company and the entire amount has been spent in cash. The amount required to be spent under Section 135 of the Companies Act, 2013 for the year 2018 is INR 29.10 lakhs i.e. 2% of average net profits for last three financial years, calculated as per Section 198 of the Companies Act,2013.

7 Reporting under sub clause 32 of clause 49 of listing agreement issued by Securities and Exchange Board of India (SEBI), is not applicable to the company, as there is no loan given to subsidiary or Associates as defined under section 186 of the Companies Act, 2013 and no loans and advances are given which is outstanding for a period of more than seven years.

8 All assets and liabilities have been classified as current or non-current as per the Company’s normal operating cycle and other criteria set out in the Schedule III to the Companies Act, 2013. Based on the nature of products and the time between the acquisition of assets for processing and their realization in cash and cash equivalents, the Company has ascertained its operating cycle as 12 months for the purpose of current - non current classification of assets and liabilities.

9 Post reporting date events

There are no adjusting or significant non-adjusting events have been occurred between 31 March 2018 and the date of authorization of the company''s standalone financial statement.

10 Authorization of Financial Statements

The standalone financial statement for the year ended 31 March 2018 (including comparatives) were approved by the Board of Directors on 30th May 2018

11 The previous year''s figures have been regrouped and rearranged wherever necessary to make in compliance with the current financial year.


Mar 31, 2016

1 Contingent Liabilities and Commitments for provided for: In 1992, STC of India Ltd had claimed for Rs. 9,02,807/- towards price difference & others, against this, Honourable Bombay High Court ordered Company to give bank guarantee of Rs. 1,65,000/-. (Previous year Rs. 1,65,000/-)

2 Previous year figures have been rearranged /regrouped, wherever necessary, to make them comparable with current year fig urns.

3 During the year, company had increased installed production capacity of boric acid at Pithampur from 14400 MI to 20000 MT. In the process of capacity expansion, Company has repaired old plant and machinery to harmonized with new plant & machinery and to synchronize the old production process with new one. Company has made addition to factory building and repaired to the old factory building including roads.

4 During the year company has capitalized revenue expenses of Rs. 42,52,259/- from power charges, water changes, professional fees & factory salary as per actual usage, towards addition to factory building Rs 10,12.495/-& plant& machinery Rs 33,39.734/-,

The Company has taken Group Gratuity Policy and contributing for the Managing & Executive Directors are nor separately determined, hence not included above,

5. The Balances of sundry debtors, trade payable, loan s and advances are subject to confirmation & reconciliation, if any. In the opinion of the management, adjustment, if any, arising out of reconciliation are not expected to be significant

6. In the opinion of the Board of Directors, the assets (other than fixed assets and non-current investments] have value on realization in the ordinary course of business at least equal to the amount at which they are stated.

7. Major components of deferred tax liabilities and assets arising on account of timing difference are

8. No Provision for diminution In value of long term investments in quoted shares aggregating to Rs.57,35,785/- Previous year :Rs. 67,79,0041-) has been made-In accounts as the diminution is of temporary nature w per opinion of the management.

9. The company has not entered in any derivative transaction by way of currency and or interest rate swap or forward exchange contract.

10. None of the supplier of the company has informed that it» a SSI unit. Therefore. outstanding to SSI units is considered to be NIL.

11. During the year company has Inverted Rs. 18,63,42,677/In new office premises at Bandra Kurta Complex, Mumbai In addition to earlier Investment In office premises of Rs. 12,02,14,360/-

12. Details of CSR Spend during the financial year-During the year, the Company has incurred an amount w Rs, 63,01,107/’ towards Corporate Social Responsibility expenditure, which includes previous years unspent amount of Rs. 27,47,154/-.


Mar 31, 2015

1. Brief Information on shares bought back during the year

Pursuant to the resolution passed by the Board of Directors of the Company and in accordance with the applicable provisions of the Companies Act, 1956, the Companies Act, 2013 and the Securities and Exchange Board of India (Buy-back of Securities) Regulations, 1998, as amended, the Company made a Public Annoucement on 3rd March, 2014, to buy back the Equity Shares of Face Value of Rs. 10/- each of the Company from open market through Stock Exchange route at a price not exceeding Rs. 145/- per shares, aggregating to Rs. 4,35,00,000/-, if the entire shares bought at maximum price.

The Company has bought back & extinguished 2,72,000 Equity Shares as at 31st March, 2015 at an average price of Rs. 125.99 per share, utilising a sum of Rs. 3,42,67,998/- in terms of the applicable Provisions of the Section 77A of the Companies Act, 1956, Section 68 of the Companies Act, 2013 and SEBI ( Buy-back of Securities) Regulations, 1998, as amended.

Previous year, the Company has bought back 1,69,627 Equity Shares as at 31st March, 2014 at an average price of Rs. 128.56 per share, utilising a sum of Rs. 2,18,06,836/-. These shares have been extinguished on 7th April 2014 in terms of the applicable Provisions of the Section 77A of the Companies Act, 1956, Section 68 of the Companies Act, 2013 and SEBI ( Buy-back of Securities) Regulations, 1998, as amended. The said amount of Rs. 2,18,06,836/- has been shown by way of deduction from shareholders fund.

2. Contingent Liabilities & Commitments not provided for guarantees given by the bank of the company Rs. 1,65,000/-.( Previous Year Rs. 1,65,000/-)

3. Previous year figures have been rearranged/regrouped, wherever necessary, to make them comparable with current year figures.

4. The Balances of sundry debtors, sundry creditors, loans and advances are subject to confirmation & reconciliation, if any. In the opinion of the management, adjustment, if any, arising out of reconciliation are not expected to be significant.

5. In the opinion of the Board of Directors, the assets (other than fixed assets and non-current investments) have value on realisation in the ordinary course of business at least equal to the amount at which they are stated.

6. Key Management Personnel & their relatives

a) Shri S. K. Jain, Managing Director and Shri.Sajal Jain, Executive Director of the Company hold significant interest and key management position in the Company.

7. Pursuant to Accounting Standard Interpretation (ASI)-14 (Revised) "Disclosure of Revenue from Sales Transactions" issued by the Institute of Chartered Accountants of India, the excise duty expenses is bifurcated into three components: excise duty expenses related to sales is reduced from Gross Sales, excise duty relating to the difference between the closing and opening stock is recognized in the inventory adjustments and the unrecovered excise duty is recognized under other expenses.

8. No Provision for diminution in value of long term investments in quoted shares aggregating to Rs. 67,78,004/- (Previous year :Rs. 72,95,418/-) has been made in accounts as the diminution is of temporary nature.

9. The company has not entered in any derivative transactions by way of currency and/or interest rate swap or forward exchange contract.

10. a) None of the supplier of the company has informed

that it is a SSI unit. Therefore, outstanding to SSI units is considered to be NIL.

b) In the absence of any intimation received from vendors regardimg the status of their registration under the " Micro, Small and Medium Enterprises Development Act, 2006 " the company is unable to comply with the disclosure required to be made relating thereto.

11. Details of CSR Spend during the financial year.

Total amount to be spend for the financial year Rs. 28,28,732/-, amount spend during the financial year Rs. 81,578/- & unspent amount for the year is Rs. 27,47,154/-.


Mar 31, 2014

NOTE - 1

OTHER DISCLOSURES & NOTES

1 Brief Information on shares bought back during the year

Pursuant to the resolution passed by the Board of Directors of the Company and in accordance with the applicable provisions of the Companies Act, 1956, the Companies Act, 2013 and the Securities and Exchange Board of India ( Buy-back of Securities) Regulations, 1998, as amended, the Company made a Public Annoucement on 3rd March, 2014, to buy back the Equity Shares of Face Value of Rs. 10/- each of the Company from open market through Stock Exchange route at a price not exceeding Rs. 145/- per shares, aggregating to Rs. 4,35,00,000/-, if the entire shares bought at maximum price.

The Company has bought back 1,69,627 Equity Shares as at 31st March, 2014 at an average price of Rs. 128.56 per share, utilising a sum of Rs. 2,18,06,836/-.These shares have been extinguished on 7th April 2014 in terms of the applicable Provisions of the Section 77A of the Companies Act, 1956, the Companies Act, 2013 and SEBI ( Buy-back of Securities) Regulations, 1998, as amended.

The said amount of Rs. 2,18,06,836/- has been shown by way of deduction from the Shareholders Fund.

2 Contingent Liabilities & Commitments not provided for a) Guarantees given by the bankers of the Company Rs. 1,65,000/- (Previous Year Rs. 1,65,000/-)

b) Overdue interest on loan from Development Corporation of Konkan Ltd Rs. NIL (Previous Year Rs. 7,87,025/-)

3 Previous year figures have been rearranged/regrouped, wherever necessary, to make them comparable with current year figures.

The Company has taken Group Gratuity Policy and contributing for the Directors is not separately determined, hence not included above.

4 The Balances of sundry debtors, sundry creditors, loans and advances are subject to confirmation & reconciliation, if any. In the opinion of the management, adjustment, if any, arising out of reconciliation are not expected to be significant.

5 In the opinion of the Board of Directors, the assets (other than fixed assets and non-current investments) have value on realisation in the ordinary course of business at least equal to the amount at which they are stated.

6 Key Management Personnel & their relatives

a) Shri S. K. Jain, Managing Director and Shri.Sajal Jain, Executive Director of the Company hold significant interest and key management position in the Company.

b) Details of Transations with the persons referred to in (a) above and their relative Mrs Sushila Jain are as under:-

1 Remuneration paid to 8,096,445 9,678,354

Managing Director *

2 Remuneration paid to 8,096,444 9,374,114

Executive Director *

3 Directors Sitting Fees 24,000 12,000

paid to Mrs Sushila Jain

*The Company has taken Group Gratuity Policy and contribution for the Managing Director and Executive Director is not separately determined, hence not included above.

7 Pursuant to Accounting Standard Interpretation (ASI)-14 (Revised) '' ''Disclosure of Revenue from Sales Transactions" issued by the Institute of Chartered Accountants of India, the excise duty expenses is bifurcated into three components: excise duty expenses related to sales is reduced from Gross Sales, excise duty relating to the difference between the closing and opening stock is recognized in the inventory adjustments and the unrecovered excise duty is recognized under other expenses.

8. No Provision for diminution in value of long term investments in quoted shares aggregating to Rs. 72,95,418/- (Previous year :Rs. 71,30,018/-) has been made in accounts as the diminution is of temporary nature.

9. The company has not entered in any derivative transactions by way of currency and/or interest rate swap or forward exchange contract.

10. a) None of the supplier of the company has informed that it is a SSI unit. Therefore, outstanding to SSI units is considered to be NIL. b) In the absence of any intimation received from vendors regardimg the status of their registration under the '' Micro, Small and Medium Enterprises Development Act, 2006 '' the company is unable to comply with the disclosure required to be made relating thereto.


Mar 31, 2013

1 Contingent Liabilities & Commitments not provided for

a) Guarantees given by the bankers of the Company Rs.1,65,000/- (Previous Year Rs. 1,65,000/-)

b) Overdue interest on loan from Development Corporation of Konkan Ltd. Rs.7,87,025/- (Previous Year Rs. 7,24,207/-)

2 Previous year figures have been rearranged/regrouped, wherever necessary, to make them comparable with current year figures.

The Company has taken Group Gratuity Policy and contributing for the Directors is not separately determined, hence not included above.

3 The Balances of sundry debtors, sundry creditors, loans and advances are subject to confirmation & reconciliation, if any. In the opinion of the management, adjustment, if any, arising out of reconciliation are not expected to be significant.

4 In the opinion of the Board of Directors, the assets (other than fixed assets and non-current investments) have value on realisation in the ordinary course of business at least equal to the amount at which they are stated.

5 Pursuant to Accounting Standard Interpretation (ASI)-14 (Revised) "Disclosure of Revenue from Sales Transactions" issued by the Institute of Chartered Accountants of India, the excise duty expenses is bifurcated into three components: excise duty expenses related to sales is reduced from Gross Sales, excise duty relating to the difference between the closing and opening stock is recognized in the inventory adjustments and the unrecovered excise duty is recognized under other expenses.

6 No Provision for diminution in value of long term investments in quoted shares aggregating to Rs. 71,30,018/- (Previous year :Rs. 1,15,58,130/-) has been made in accounts as the diminution is of temporary nature.

7 The company has not entered in to derivative transactions except foreign currency forward contract against existing trade liability.

8 a) None of the supplier of the company has informed that it is a SSI unit . Therefore, outstanding to SSI units is considered to be NIL. b) In the absence of any intimation received from vendors regardimg the status of their registration under the " Micro, Small and Medium Enterprises Development Act, 2006 " the company is unable to comply with the disclosure required to be made relating thereto.

9 The company has taken Group Gratuity Policy from LIC and the premiums determined by Lie and payable for the financial year adjusted for effect of acturial valuation at year end is charged to Profit 6 Loss Account. Required disclosures as per particulars received from LIC and accounts are as under:


Mar 31, 2012

1. Contingent Liabilities & Commitments not provided for

a) Guarantees given by the bankers of the Company Rs 1,65,000/- (Previous Year Rs 1,65,000/-)

b) Overdue interest on loan from Development Corporation of Konkan Ltd. Rs 7,24,207/- (Previous Year Rs 6,61,389/-)

2. Previous year figures have been rearranged/regrouped, wherever necessary, to make them comparable with current year figures.

The Company has taken Group Gratuity Policy and contributing for the Directors is not separately determined, hence not included above.

3 The Balances of sundry debtors, sundry creditors, loans and advances are subject to confirmation & reconciliation, if any. In the opinion of the management, adjustment, if any, arising out of reconciliation are not expected to be significant.

4 In the opinion of the Board of Directors, the assets (other than fixed assets and non-current investments) have value on realisation in the ordinary course of business at least equal to the amount at which they are stated.

5 Pursuant to Accounting Standard Interpretation (ASI)-14 (Revised) "Disclosure of Revenue from Sales Transactions" issued by the Institute of Chartered Accountants of India, the excise duty expenses is bifurcated into three components: excise duty expenses related to sales is reduced from Gross Sales, excise duty relating to the difference between the closing and opening stock is recognized in the inventory adjustments and the unrecovered excise duty is recognized under other expenses.

6 No Provision for diminution in value of long term investments in mutual funds and quoted shares aggregating to Rs 1,15,58,130/- (Previous year : Rs 91,18,829/-) has been made in accounts as the diminution is of temporary nature.

7. The company has not entered in any derivative transactions by way of currency and/or interest rate swap or forward exchange contract.

8. a) None of the supplier of the company has informed that it is a SSI unit. Therefore, outstanding to SSI units is considered to be NIL.

b) In the absence of any intimation received from vendors regardig the status of their registration under the "Micro, Small and Medium Enterprises Development Act, 2006" the company is unable to comply with the disclosure required to be made relating thereto.


Mar 31, 2011

Not Available


Mar 31, 2010

1 Contingent Liabilities not provided for

a) Guarantees given by the bankers of the Company Rs. 1,65,000/-- (Previous Year Rs. 1,65,000/-)

b) Overdue interest on loan from Development Corporation of Konkan Ltd. Rs.5,98,571 /- (PreviousYear Rs.5,35,753/-)

2 Previous year figures have been rearranged/regrouped, wherever necessary to make them comparable with current year figures.

3 The Balances of sundry debtors, sundry creditors, loans and advances are subject to confirmation & reconciliation, if any. In the opinion of the management, adjustment, if any, arising out of reconciliation are not expected to be significant.

4 In the opinion of the Board of Directors, the current assets, loans and advances are approximately of the value stated, if realised in the ordinary course of business.

B Key Management Personnel & their relatives

a) Shri S. K. Jain , Managing Director and Shri.Sajal Jain, Executive Director of the Company hold significant interest and key management position in the Company.

5 During the year, the company has written off Rs.NIL (Previous year Rs. 19,24,940/-) as Bad Debts as, in the opinion of the management, the same is doubtful of recovery. The monev claim and other proceedings in respect of the said am;iu;it are pending.

6 Pursuant to Accounting Standard Interpretation (ASI)-14 (Revised) "Disclosure of Revenue from Sales Transactions" issued by the Institute of Chartered Accountants of India, the excise duty expenses is bifurcated into three components: excise duty expenses related to sales is reduced from Gross Sales, excise duty relating to the difference between the closing and opening stock is recognized in the inventory adjustments and the unrecovered excise duty is recognized under manufacturing and other expenses.

7 No Provision for diminution in value of long term investments in mutual funds and quoted shares aggregating to Rs. 71,85,328/- (Previous year :Rs.5,30,51,084/-) has been made in accounts as the diminution is of temporary nature.

8 The company has not entered in any derivative transactions by way of currency and/or interest rate swap or forward exchange contract.

9 a) None of the supplier of the company has informed that it is a SSI unit . Therefore, outstanding to SSI units is considered to be NIL.

b) In the absence of any intimation received from vendors regarding the status of their registration under the Micro, Small and Medium Enterprises Development Act, 2006 " the company is unable to comply with the disclosure required to be made relating thereto.

10 ADDITIONAL QUANTITATIVE INFORMATION AS REQUIRED BY PARA 3 & 4 PART II OF THE SCHEDULE VI OF THE COMPANIES ACT. 1956,ARE AS UNDER

In view of partial interchangeability of production of Boric Acid and Borax within overall installed capacity, combined installed capacity has been stated. Installed capacity is technical matter, hence Auditors have relied on the certificate given by the management.

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