1. 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.
2.1 A. Key management personnel and relatives of key management
personnel Key management personnel:
Mr. Prashant Deshpande (upto9July2012)
Mr. Sharad kumar Shetye
Relatives of key management personnel:
3. Management believes that the Company''s international transactions
with related parties post 31 March 2012 (last period up to which an
Accountants'' report has been submitted as required under the Income tax
Act, 1961) continue to beat 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
4. The financial statements for the year ended 31 December 2011 had
been prepared as per the then applicable pre revised Schedule VI of the
Companies Act 1956. Consequent to the notification of revised Schedule
VI under Company''s Act 1956, the financial statements for the year
ended 31 December 2012 are prepared as per revised Schedule VI.
Accordingly, the previous year''s figures have also been reclassified to
conform to this year''s classification.