Annual Report 2011 - Ballarpur Industries Limited

ScheDUleS "a" tO "l" attached to and forming part of the balance sheet as at June 30, 2011
J. RetIReMent BeneFItS
Short term employee benefits are charged off in the year in which the related services are rendered.
post employment and other long term employee benefits are charged off in the year in which the employee has rendered services. the
K.
amount charged off is recognized at the present value of the amount payable determined using actuarial valuation techniques. Actuarial
gain and losses in respect of post employment and other long term benefits are charged to profit & Loss Accounts.
IncOMe FROM InVeStMentS
Income from Investments, where appropriate, is taken to revenue in full on declaration or receipt and tax deducted at source thereon is
treated as advance tax.
l. aDVance lIcenSe, IMPORt entItleMentS
Advance license, Import Entitlements are recognized at the time of export and the benefit in respect of advance License received by the
company against export made by it are recognized as and when goods are imported against them.
M. taXatIOn
provision for Current tax is made on the basis of estimated taxable income for the relevant accounting year in accordance with the Income
tax Act, 1961.
the deferred tax liability on account of timing differences between the book profits and the taxable profits for the year is accounted by
applying the tax rates as applicable as on the balance sheet date.
Deferred tax assets arising from timing differences are recognised on the principles of virtual certainty that these would be realised in
future.
n. IMPaIRMent OF aSSetS
the company applies the test of Impairment of certain assets as provided in Accounting Standard (AS) – 28 “Impairment of Assets”.
O. PROVISIOn anD cOntInGencIeS
the Company shall create a provision when there is a present obligation as a result of past events that probably require an outflow of
resources and a reliable estimate can be made of the amount of obligation. A disclosure for a contingent liability is made, when there is a
possible obligation or a present obligation that probably will not require an outflow of resources or where a reliable estimate of the obligation
cannot be made.
P. ShaRe PReMIUM accOUnt: UtIlISatIOn
Debenture / Share / Zero Coupon Convertible Bonds issue expenses incurred and premium payable on Zero Coupon Convertible Bonds
are adjusted in the same year against the Securities premium Account as permitted by section 78(2) of the Companies Act, 1956.
2. cOntInGent lIaBIlItIeS
(a) Rs 10,181 Lacs being claims (30th June 2010 Rs 9618 Lacs) approximately against the company not acknowledge as debts.
(b) the future obligation for the rentals under a Financial Lease Agreement entered into, by the Company for certain assets taken on lease by
another Company amounts to Rs. NIL (30th June, 2010 Rs. 2.07 Lacs).
3. Guarantees given by bankers on behalf of the Company remaining outstanding and Bills Discounted with Banks remaining outstanding amount
to Rs. 1,217.94 Lacs (30th June, 2010 Rs. 943.24 Lacs).
4. In respect of loan to its subsidiary abroad, the Company has granted to the lender an irrevocable and unconditional right to require the Company
to purchase loan wholly or in parts as may be required by lender through exercise of put option given to lender, subjected to maximum limit of
US$ 70 Millions.
5. Estimated amount of contracts remaining to be executed on Capital Account Rs. 785.34 Lacs (Net of Advances) (30th June, 2010 Rs. 504.98 Lacs).
6. the Company has operating leases for various premises and for other assets, which are renewable on a periodic basis and cancellable at its
option. Rental expenses for operating leases charged to profit & Loss Account for the year are Rs. 29.64 Lacs (30th June, 2010 Rs. 43.17 Lacs).
As of 30th June, 2011, the future minimum lease payments for non-cancellable operating leases are as below :-
- Not later than one year from 30th June, 2011 Rs. 11.55 Lacs
- Later than one year and not later than five years Rs. NIL
7. Unit Ashti has imported certain plant and Machinery at concessional rate of custom duty under 5% Export promotion Capital Goods (EpCG)
scheme. the Unit has been granted two licenses, accordingly the unit is obliged to export goods amounting US$ 9.17 million, which is equivalent
to eight and half times the duty saved on import of machinery. the unit is required to meet this export obligation over a period of eight years
starting from 17th March 2005.the unit has achieved total export of US$ 12.91 million as on 30.06.11.the management is in the process of
submitting the required documents for the issuance of Export obligation discharge certificate from the Director General of Foreign trade.
8. Disclosures required under the Micro, Small and Medium Development Act, 2006 (“the Development Act”) –delayed payments due as at the
end of the year on accounts of principal – Rs.33.30 Lacs (30th June, 2010 Rs. 128.27 Lacs) and interest due thereon Rs. 4.81 Lacs (30th June,
2010 Rs. 3 Lacs).
FInancIals
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