1) Corporate Information
 
 Banco Products (India) Limited is a public company domiciled in India
 and incorporated under the Companies Act, 1956. Equity shares of the
 company are listed on two stock exchanges in India. The Company is
 engaged in manufacturing and selling of radiators and gaskets. The
 company caters to both domestic and international market.
 
 2) Basis of Accounting
 
 i) The financial statements have been prepared under the historical
 cost convention (except for certain fixed assets, which have been
 revalued) in accordance with the generally accepted accounting
 principles to comply with the applicable Accounting Standards as
 prescribed under the Companies (Accounting Standards) Rules, 2006 and
 the relevant provisions of the Companies Act, 1956.
 
 ii) The Company generally follows the mercantile system of accounting
 and recognises significant items of income and expenditure on accrual
 basis.
 
 iii) Use of estimates: The preparation of financial statements in
 conformity with generally accepted accounting principles in India
 requires management to make estimates and assumptions that affect the
 reported amounts of assets and liabilities and disclosure of contingent
 liabilities at the date of the financial statements.
 
 Terms / rights attached to equity shares
 
 The company has only one class of equity shares having par value of Rs 
 2 per share. Each holder of equity shares is entitled to one vote per
 share. The Company declares and pays dividend in Indian rupees. The
 dividend proposed by the Board of directors is subject to approval of
 the shareholders in the ensuing Annual General Meeting.
 
 3) Discontinuing Operation
 
 a The Company has transferred the Gasket Manufacturing Division/Unit
 having its Manufacturing Facility at Anakhi by way of Slump Sale to
 Banco Gaskets (India) Limited (BGIL), a wholly owned subsidiary of the
 Company as per agreement dated 31.03.2012 with effect from 31.03.2012
 for a consideration of Rs 4600 Lacs as a result of which the current
 year''s figures of Assets & Liabilities are not strictly comparable
 with that of the previous year.
 
 
 4) Segment Information
 
 The Company has identified manufacturing of automobile components as
 its sole primary segment. Thus, the disclosure requirements as set out
 in Accounting Standard 17 (AS-17) Segment Reporting are not
 applicable.
 
 5) Capital and other commitments
 
 Estimated amount of contracts remaining to be executed on capital
 account not provided for Rs 212.52 Lacs (P.Y. Rs 1,064.38 Lacs).
 
 6) Contingent Liabilities
 
 a. Counter guarantees given to the banks in respect of various
 guarantees issued by the banks to third parties Rs 2481.13 Lacs (Previous
 Year Rs 40.33 Lacs).
 
 b. Letter of credit opened and outstanding Rs 754.68
 Lacs (P. Y. Rs 368.86 Lacs).
 
 c. Other claims against the Company not acknowledged as debts amount
 unascertainable.  
 
 d. Claims from employees and former employees amount
 unascertainable. 
 
 e. Disputed tax liabilities:
 
 i) Excise Duty and Service Tax Rs 541.64 Lacs (P. Y. Rs 203.73 Lacs).
 
 ii) Income Tax Rs 75.37 Lacs (P. Y. Rs 1.19 Lacs).
 
 iii) Sales Tax Rs 24.96 (P. Y. Nil).
 
 7) As far as balances of Trade Payables & Trade Receivables are
 concerned, the Company has done reconciliation with major parties,
 pending formal confirmation.
 
 8) In compliance with the Accounting Standard (AS-2) issued by the
 Institute of Chartered Accountants of India (ICAI), the Company has
 included excise duty on closing stock of finished goods amounting to Rs 
 67.65 Lacs (Previous Year Rs 50.06 Lacs) and the same has been claimed
 as expenditure. However this charge has no impact on the profit of the
 Company for the year under review.
 
 9) Maximum balance due during the year from Banco Aluminum Ltd, a
 company under the same management, is Rs 91.41 Lacs (P.Y. Rs 7.26 Lacs)
 
 The amount of further interest remaining due and payable even in the 
 succeeding years, until such date when the interest dues as above are
 actually paid to the small enterprise for the purpose of disallowance.
 
 10) In compliance with Accounting Standard 22 (AS-22) Accounting for
 Taxes on Income, the Company has recognized deferred tax liability
 (net of assets) arising on account of timing differences, being the
 difference between the taxable income and accounting income, that
 originates in one period and is capable of reversal in one or more
 subsequent period(s).
 
 11) Legal & professional charges include 72.00 Lacs (Previous Year
 Rs 1.50 Lacs) paid to Shah & Associates, wherein some of the partners of
 the auditors are interested.
 
 12) In the opinion of the management, there are no indications,
 internal or external which could have the effect of impairment of the
 assets of the Company to any material extent as at the Balance Sheet
 date, which requires recognition in terms of Accounting Standard 28
 (AS-28) on Impairment of Assets.
 
 13) The contribution to the Equity Capital of Lake Cements Limited is
 in the nature of investment.
 
 14) Previous years figures have been regrouped and reclassified
 wherever necessary to be in conformity with the figures of the current
 year which is as per Revised schedule VI.
 
 Note
 
 1 Foreign currency term loan carries interest @ 3 M LIBOR plus 2%. The
 loan is repayable within 3 years on quarterly installments. The loan is
 secured hypothecation of all movable assets of the Company by way of
 First Charge.
 
 2 8.25% Unsecured OFCD of USD 15 Lacs carries interest of 8.25%
 P.A.payable annually on 31st March from the date of its allotment till
 conversion
 
 3 CITI Bank loan of USD 50 Lacs carries interest @ 3 M LIBOR plus 2%.
 The loan is repayable within three years on quarterly installments.