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
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
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
d. Claims from employees and former employees amount
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
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.
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
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
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.