1. Contingent liabilities not provided for (Currency : Rs. in lacs)
a) Claims against the Company not
acknowledged as debts 185.74 185.74
b) Excise duty matters 226.96 127.15
c) Income tax matters 23.93 23.93
d) Sales tax matters 334.23 304.40
e) Guarantee in favour of Gujarat Industrial
Development Corporation 12.24 12.24
d) Notes :
1) The plan assets comprises entirely of Insurer Managed Funds.
2) The expected return on plan assets is based on market expectations,
at the beginning of the year, for returns over the entire life of
3) The estimates of future salary increases considered takes into
account the inflation, seniority, promotion and other relevant factors
on a long term basis.
4) Changes enacted before the Balance Sheet date are considered while
determining the obligation.
5) Expected Employer''s contribution in next year ` 18.00 (Previous year
` 30.00) .
6) Salary escalation rate is 12 % for first 2 years and 10.50%
2. Segment reporting
The Company has disclosed business segments as the primary segment.
Segments have been identified by the Management taking into account the
nature of products, manufacturing process, customer profiles, risk and
reward parameters and other relevant factors.
The Company''s operations have been classified into two primary
segments, Electrical Insulations and Engineering and Electronic
Resins and Materials. Segment assets include all operating assets used
by the business segment and consist primarily of fixed assets, debtors
and inventories. Segment liabilities primarily include creditors and
other liabilities. Assets and liabilities that cannot be allocated
between the segments are shown as a part of unallowable assets and
Secondary segments have been identified with reference to geographical
location of the customers. The Company has identified India and outside
India as the two geographical segments for secondary segmental
reporting. Geographical sales are segregated based on the location of
the customer who is invoiced. Assets other than receivables used in the
Company''s business or liabilities contracted have not been identified
to any of the reportable geographical segments, as these are used
interchangeably between geographical segments. All assets other than
receivables are located in India. Similarly, capital expenditure is
incurred towards fixed assets in India.
3. Management believes that the Company''s international transactions
with related parties post 31 March 2013 (last period upto which an
Accountants'' report has been submitted as required under the Income tax
Act, 1961) continue to be at arm''s length and that the transfer pricing
legislation will not have any impact on these financial statements,
particularly on the amount of tax expense and that of provision for