Get Updates

Get notified about market trends, financial advice, and investment tips!

A Oneindia Venture

Nifty 25,966.40 +0.58%

22k Gold ₹ 12,300 /gm

Sensex 84,929.36 +0.53%

Nifty 25,966.40 +0.58%

22k Gold ₹ 12,300 /gm

Sensex 84,929.36 +0.53%

Nifty 25,966.40 +0.58%

22k Gold ₹ 12,300 /gm

Notes to Accounts of BPL Ltd.

Mar 31, 2024

35. NOTES TO ACCOUNTS

The fair value ofthe financial assets and liabilities are included at the amount that would be received to sell an asset and paid to transfer a liability in an orderly transaction between market participants. The following methods and assumptions were used to estimate the fair values:

Fair Value Hierarchy:

The fair value of assets and liabilities are included at the amount at which the instrument could be exchanged in a current transaction between willing parties, other than in forced or liquidation sale.

The table shown below analyses financial instruments carried at fair value, by valuation method. The different levels have been defined below:

Level 1: quoted prices (unadjusted) in active markets for identical assets or liabilities

Level2: Inputs other than quoted prices included within level lthat are observable for the asset or liability, either directly (I e., as prices) or indirectly (i.e., derived from prices)

Level 3: Inputs for the asset or liability that are not based on observable market data (unobservable inputs)

The Fair value of the financial assets and liabilities are included at the amount that would be received to sell an asset and paid to transfer a liability in an orderly transaction between market participants. The following methods and assumptions were used to estimate the fair values:

1. Fair Value of cash and short-term deposits, trade and other short-term receivables, trade payables, other current liabilities, short term loans from banks and other financial instruments approximate their carrying amounts largely due to the short-term maturities of these instruments.

2. Financial instruments with fixed and variable interest rates are evaluated by the company based on parameters such as interest rates and individual credit worthiness of the counterparty. Based on this evaluation, allowances are taken to the account for the expected losses ofthese receivables.

3. Investments ofequity shares valued at FVTOCI: The investee company is an unlisted company; the valuation is carried out by the independent valuer. Based on the valuation report, the fair value has been considered for the investments in equity shares. The methodology & key assumptions applied by the valuer as described below:

i. The Discounted Cash Flow method (DCF) is used to arrive at the fair value per share. The equity method expresses the present value of the business attributable to equity shareholders as a function of its future cash earning capacity. This methodology works on the premise that the value of a business is measured in terms of future cash flow streams, discounted to the present time at an appropriate discount rate.

ii. Discount rate applied: Considered Risk free return on investments is around 8%. Business investments which carry all types of risks needs to have an allowance for the risk factor and 4% additional allowance is considered adequate to cover the risk. This is based on Beta factor of 0.47 and risk premium of 8.53%. Thus 12% has been assumed as âDiscounting factorâ while arriving at the present value of future cash flows of investee company.

Capital management

For the purpose of the Company''s capital management, capital includes issued capital, additional paid in capital and all other equity reserves attributable to the equity shareholders. The primary objective of the Company''s capital management is to maximise the shareholder value.

In order to achieve this overall objective, the company''s capital management, amongst other things, aims to ensure that it meets its liabilities due. The Company manages its capital structure and adjusts considering changes in economic conditions and the requirements of the financial covenants. The Company being debt-free, capital gearing ratio is not applicable.

Risk Management Framework

The Company''s businesses are subject to several risks and uncertainties including financial risks. The Company''s documented risk management polices act as an effective tool in mitigating the various financial risks to which the business is exposed to during their daily operations. The risk management policies cover areas such as liquidity risk, foreign exchange risk, interest rate risk, counterparty and concentration of credit risk and capital management. Risks are identified through a formal risk management programme with active involvement of senior management personnel and business managers. The Company has in place risk management processes in line with the Company''s policy. Each significant risk has a designated ''owner'' within the Company at an appropriate senior level. The potential financial impact of the risk and its likelihood of a negative outcome are regularly updated.

The overall internal control environment and risk management programme including financial risk management is reviewed by the Audit Committee on behalf of the Board.

The risk management framework aims

â¢ improve financial risk awareness and risk transparency,

â¢ identify, control, and monitor key risks.

â¢ identify risk accumulations.

â¢ provide management with reliable information on the Company''s risksituation.

â¢ improve financial returns.

a) Finance Risk

The Company''s Board approved financial risk policies comprise liquidity, currency, interest rate and counterparty risk. The Company does not engage in speculative treasury activity but seeks to manage risk and optimize interest through proven financial instruments.

b) Interest Rate Risk

The borrowings of the Company are denominated in Indian Rupees and principally at fixed interest rates. These exposures are reviewed by appropriate levels of management on a monthly basis.

c) Counterparty and concentration of credit risk

Credit risk refers to the risk that counterparty will default on its contractual obligations resulting in financial loss to the Company. The Company has adopted a policy of obtaining sufficient collateral, where appropriate, as a means of mitigating the risk of financial loss from defaults.

The Company is exposed to credit risk from its operating activities primarily trade receivables and from its investing activities including deposits with banks, for receivables, cash and cash equivalents, short-term investments, financial guarantees. Credit risk on receivables is limited on the credit limit allowed to each

counter party is based on their financial strength and payment performance. This credit limit is assessed on a periodic basis and necessary adjustments being done.

None of the Company''s cash equivalents, including time deposits with banks, are past due or impaired. Regarding trade and other receivables, and other non-current assets, there were no indications as at March 31, 2024, that defaults in payment obligations will occur. The credit quality of the Company''s customers is monitored on an ongoing basis and assessed for impairment where indicators of such impairment exist. The solvency of customers and their ability to repay the receivable is considered in assessing receivables for impairment. Where receivables are impaired, the Company actively seeks to recover the amounts in question and enforce compliance with credit terms.

d) Liquidity Risk

Liquidity risk is defined as the risk that the company will not be able to settle or meet its obligations on time or at a reasonable price. The Company''s treasury department is responsible for maintenance of liquidity (including quasi liquidity), continuity of funding as well as timely settlement of debts. In addition, policies related to mitigation of risks are overseen by senior management. Management monitors the Company''s net liquidity position based on expected cash flows vis- a- vis debt service fulfilment obligation.

35.4 The company entered a transaction of purchase of land measuring 892.52 cents situated at Palakkad from BPL Telecom (BTPL) for approximate value around Rs. 40 crores. Since this transaction attracts Section 188 of the companies Act, 2013, the special resolution has been passed

by BTPL in Extraordinary General Meeting (EGM) held onl2.10.2016at Palakkad for sale ofproperty by BTPL.

35.5 Deposit Includes fixed deposits with banks Rs 10.00 Lakhs marked as lien for Bank Guaranties to The Assistant Commissioner of Customs, and VAT Department issued

byUnionBankoflnda (ew Andhra bank)

35.6 Share Capital

Share Capital includes 21,930 Equity Shares of Rs 10/-each allotted as Fully Paid Up for consideration other than cash and 96,50,000 Equity Shares of Rs 10/- each allotted as Bonus Shares by Capitalization of General Reserve during an earlier period.

During FY 2021-22, 9423 shares were issued at face value ofRs.10 under employee stock option.

35.7 Provisions (EmployeeBenefits)

Particular	As on 31.03.2024	As on 31.03.2023
Opening Balance	216.29	226.22
Additional Provision	19.55	26.10
For the year
Provision utilised /	220.13	36.03
withdrawn
during the year
Closing balance	15.18	216.29

35.8 Borrowings

Land and building including Factory in Plot No 28-B and 29 at Doddaballapur Industrial Area situated in Sy Nos 79, 92 and 93, KIADB of Veerapura Village, Kasaba Hobli, Doddaballapur Taluk, Bangalore District, admeasuring 3,40,627.85 sq fts (7.82 acres) and building plinth area of 16903.96 sq ft (Tentatively valued at INR31.36Crs) and 2 apartments (Flat No.3D) at the Complex named Sundale Apartments admeasuring 1940 sq ft located at Municipal No. 55 (No.55 & 56) at the Osborne Road, Ulsoor, Bangalore are mortgaged for the purpose of Secured Overdraft of Rs.10.00 (15.00) Crores and Rs 9.00 (13.00) Crores of non-fund based LC limited from Union Bank of India (erstwhile Andhra Bank.) The above limits are further secured by hypothecation ofinventories and book debts.

35.9 1,69,58,682 Non- Convertible, Non-Cumulative 0.001% Preference Shares of Rs. 100/- each, were allotted on 23rd September 2005, pursuant to the Scheme of Arrangement approved by the Hon. High Court ofKerala, Ernakulam. Out of which, 1,41,24,682 shares are redeemable in four equal installments at the end of the llth,12th,13th and 14th year and the balance of 28,34,000 shares are redeemable in ten equal installments commencing from 31st March 2008.The Company is yet to redeem these preference shares and the amount outstanding as on31st March 2024, was Rs.169.59 crores. The Company is making arrangements for the redemption of the above and

the same will be redeemed in due course.

35.10 Employee Benefits:

a. Actuarial Risk

It is the risk that benefits will cost more than expected. This can arise due to one of the following reasons

Adverse Salary Growth Experience: Salary hikes that are higher than the assumed salary escalation will result into an increase in Obligation at a rate that is higher than expected.

Variability in mortality rates: If actual mortality rates are higher than assumed mortality rate assumption than the Gratuity benefits will be paid earlier than expected. Since there is no condition of vesting on the death benefit, the acceleration of cash flow will lead to an actuarial loss or gain depending on the relative values of the assumed salary growth and discount rate.

Variability in withdrawal rates: If actual withdrawal rates are higher than assumed withdrawal rate assumption than the Gratuity benefits will be paid earlier than expected. The impact of this will depend on whether the benefits are vested as at the resignation date.

b. Investment Risk

For funded plans that rely on insurers for managing the assets, the value of assets certified by the insurer may not be the fair value of instruments backing the liability. In such cases, the present value of the assets is independent of the future discount rate. This can result in wide fluctuations in the net liability or the funded status if there are significant changes in the discount rate during the inter-valuation period.

c. Liquidity Risk

Employees with high salaries and long durations or those higher in hierarchy, accumulate significant level of benefits. If some of such employees resign / retire from the company, there can be strain on the cash flows.

d. Market Risk

Defined Benefit Obligation of the plan benefits & vice versa. This assumption depends on the yields on the corporate / government bonds and hence the valuation of liability is exposed to fluctuations in the yields as at the valuation date.

e. Legislative Risk/Regulatory Risk:

Legislative risk is the risk of increase in the plan liabilities or reduction in the plan assets due to change in the legislation / regulation. The government may amend the Payment of Gratuity Act thus requiring the companies to pay higher benefits to the employees. This will directly affect the present value of the Defined Benefit Obligation.

And the same will have to be recognized immediately in the year when any such amendment is effective.

Â£ Interest Rate Risk:

The defined benefit obligation calculated uses a discount rate based on government bonds. If bond

yields fall, the defined benefit obligation will tend to increase.

g. Salary inflation risk

Higher than expected increases in salary will increase the defined benefit obligation.

h. Demographic risks:

This is the risk of volatility of results due to unexpected nature of decrements that include mortality attrition, disability, and retirement. The effect of this decrement on the DBO depends upon the combination salary increase, discount rate, and vesting criteria and therefore not very straight forward. It is important not to overstate withdrawal rate because the cost of retirement benefit of a short caring employees will be less compared to long service employees.

i) Contribution to Defined Benefit Plan, recognised as expense for the year: Rs.23.11 lakhs.

ii) Note on defined benefit plans

â¢ Maturity profile of defined benefit obligation:

"The company has started funding the liability through the medium of an insurance company."&" Regular assessment is made by the insurance co ofthe increase in liability under certain assumptions"&" and contributions are being made to maintain the fund.â &" subject to credit risk ofthe insurance co & asset liability mismatch risk ofthe investments, The Company will not be able to meet the past service liability on the valuation date that fall due during the first year

35.12 There are no dues to Micro and Small Enterprises outstanding for more than 45 days as at 31^st March 2024. This information, as required to be disclosed under the Micro, Small and Medium Enterprises Development Act, 2006, has been determined to the extent such parties have been identified based on information available with the company.

35.13 An unsecured claimant had obtained an order against the Company from the division Bench of the Honorable

High Court ofDelhi, upholding the order of the Single Bench which had confirmed the order of the sole Arbitrator. A Special Leave Petition (SLP) appealing against the said order is being filed before the Supreme Court, Delhi. The Company, based on the pleadings on record and the opinion of the legal consultants, is hopeful of getting a favourable order on merits. Hence, the above has been disclosed under contingent liabilities and commitments.

35.16 The company had requested for the confirmation of balance from all the debtors, Confirmations received have been tied/reconciled. Group companies'' accounts are subject to confirmation and reconciliation.

35.17 The Company maintains proper books of accounts electronically as required by law.

Audit Trail: The Company has used software for maintaining its books of accounts. The accounting software has a feature ofrecording audit trail (edit log)

facility and the same has operated throughout the year for all relevant transactions recorded in the software, except audit trail feature is not enabled, for the changes made in the master and using privileged/ administrative access to the underlying SQL database for any changes performed.

35.18 Previous year''s figures have been regrouped/reclassified, wherever necessary, to correspond with the current year''s classification/ disclosure.

Mar 31, 2023

NOTES TO ACCOUNTS

Thefair value of the financial assets and liabilities are included at the amount that would be received to sell an asset and paid to transfer a liability in an orderly transaction between market participants. The following methods and assumptions were used to estimate the fair values:

FairValue Hierarchy:

The table shown below analyses financial instruments carried at fair value, by valuation method. The different levels have been defined below:

Level 1: quoted prices (unadjusted) in active markets for identical assets or liabilities

Level2: Inputs other than quoted prices included within level lthat are observable for the asset or liability, either directly (I e., as prices) or indirectly (i.e, derived from prices)

Level 3: Inputs for the asset or liability that are not based on observable market data (unobservable inputs)

3. Investments of equity shares valued at FVTOCI: The investee company is an unlisted company; the valuation is carried out by the independent valuer. Based on the valuation report, the fair value has been considered for the investments in equity shares. The methodology & key assumptions applied by the valuerasdescribed below:

ii. Discount rate applied: Considered Risk free return on investments is around 8%. Business investments which carry all types of risks needs to have an allowance for the risk factor and 4% additional allowance is considered adequate to cover the risk. This is based on Beta factor of 0.47 and risk premium of 8.53%. Thus 12% has been assumed as "Discounting factor" while arriving at the present value of future cash flows of investee company.

Risk Management Framework

The Company''s businesses are subject to several risks and uncertainties including financial risks. The Company''s documented risk management polices act as an effective tool in mitigating the various financial risks to which the business is exposed to during their daily operations. The risk management policies cover areas such as liquidity risk, foreign exchange risk, interest rate risk, counterparty and concentration of credit riskand capital management. Risks are identified through a formal risk management programme with active involvement of senior management personnel and business managers. The Company has in place risk management processes in line with the Company''s policy. Each significant risk has a designated ''owner'' within the Company at an appropriate senior level. The potential financial impact of the risk and its likelihood of a negative outcome are regularly updated.

The overall internal control environment and risk management programme including financial risk management is reviewed by the Audit Committee on behalf of the Board.

The risk management framework aims

â¢ improve financial risk awareness and risk transparency,

â¢ identify, control, and monitor key risks.

â¢ identify risk accumulations.

â¢ provide management with reliable information on the Company''s risk situation.

â¢ improvefinancial returns.

a) Finance Risk

b) Interest Rate Risk

The borrowings of the Company are denominated in Indian Rupees and principally at fixed interest rates. These exposures are reviewed by appropriate levels of management on a monthly basis.

c) Counterparty and concentration of credit risk

periodic basis and necessary adjustments being done. None of the Company''s cash equivalents, including time deposits with banks, are past due or impaired. Regarding trade and other receivables, and other non-current assets, there were no indications as at March 31, 2020, that defaults in payment obligations will occur. The credit quality of the Company''s customers is monitored on an ongoing basis and assessed for impairment where indicators of such impairment exist. The solvency of customers and their ability to repay the receivable is considered in assessing receivables for impairment. Where receivables are impaired, the Company actively seeks to recover the amounts in question and enforce compliance with creditterms.

d) Liquidity Risk

held on 12.10.2016 at Palakkad for sale of property by BTPL.

35.5 Deposit Includes fixed deposits with banks Rs 71.86 Lacs marked as lien for Bank Guaranties to The Assistant Commissioner of Customs, and VAT Department issued by Union Bank of I nda (ew Andhra bank)

Share Capital includes 69,848 Equity Shares of Rs 10/- each allotted as Fully Paid Up for consideration other than cash and 96,50,000 Equity Shares of Rs 10/- each allotted as Bonus Shares by Capitalization of General Reserve during anearlierperiod.

During FY 2022-23,48,673 shares were issued at face value of Rs.10 under employee stock option.

35.8 Borrowings

Land and building including Factory in Plot No 28-B and 29 at Doddaballapur Industrial Area situated in Sy Nos 79, 92 and 93, KIADB of Veerapura Village, Kasaba Hobli, Doddaballapur Taluk, Bangalore District, admeasuring 3,40,627.85 sq fts (7.82 acres) and building plinth area of 16903.96 sq ft (Tentatively valued at INR 31.36Crs) and 2 apartments (Flat No.3D) at the Complex named Sundale Apartments admeasuring 1940 sq ft located at Municipal No. 55 (No.55 & 56) at the Osborne Road, Ulsoor, Bangalore are mortgaged for the purpose of Secured Overdraft of Rs.15.00 Crores and Rsl3 Crores of non fund based LC limited from Union Bank of India (erstwhile Andhra Bank.) The above limits are further secured by hypothecation of inventoriesand bookdebts.

35.9 1,69,58,682 Non- Convertible, Non-Cumulative 0.001% Preference Shares of Rs. 100/- each, were allotted on 23rd September 2005, pursuant to the Scheme of Arrangement approved by the Hon. High Court of Kerala, Ernakulam. Out of which, 1,41,24,682 shares are redeemable in four equal installments at the end of the llth,12th,13th and 14th year and the balance of 28,34,000 shares are redeemable in ten equal installments commencing from 31st March 2008.The Company is yet to redeem these preference shares and the amount outstanding as on 31st March 2021, was Rs.169.59 crores. The Company is making

arrangements for the redemption of the above and the same will be redeemed in due course.

35.10 Employee Benefits:a. Actuarial Risk

It is the risk that benefits will cost more than expected. This can arise due to one of the following reasons Adverse Salary Growth Experience: Salary hikes that are higher than the assumed salary escalation will result into an increase in Obligation at a rate that is higherthan expected.

b. Investment Risk

c. Liquidity Risk

d. Market Risk

Market risk is a collective term for risks that are related to the changes and fluctuations of the

financial markets. One actuarial assumption that has a material effect is the discount rate. The discount rate reflects the time value of money. An increase in discount rate leads to decrease in Defined Benefit Obligation of the plan benefits & vice versa. This assumption depends on the yields on the corporate / government bonds and hence the valuation of liability is exposed to fluctuations in the yields as at the valuation date.

e. Legislative Risk/Regulatory Risk:

And the same will have to be recognized immediately in the year when any such amendment is effective.

f. Interest Rate Risk:

The defined benefit obligation calculated uses a

discount rate based on government bonds. If bond yields fall, the defined benefit obligation will tend to increase.

g. Salary inflation risk

Higher than expected increases in salary will increase the defined benefit obligation.

h. Demographic risks:

i) Contribution to Defined Benefit Plan, recognised as expensefortheyear: Rs.13.42 lakhs.

ii) Noteondefinedbenefitplans

â¢ Maturity profile of defined benefit obligation:

"The company has started funding the liability through the medium of an insurance company."&" Regular assessment is made by the insurance co of the increase in liability under certain assumptions"&" and contributions are being made to maintain the fund."&" subject to credit risk of the insurance co & asset liability mismatch risk of the investments, The Company will not be able to meet the past service liability on the valuation date that fall due during the first year

35.12 There is only one Micro and Small Enterprises (M/s Autograph ) to whom the company owes dues Rs.18 Lakhs, which are outstanding for more than 45 days as at 31^st March 2023. This information, as required to be disclosed under the Micro, Small and Medium Enterprises Development Act, 2006, has been determined to the extent such parties have been identified based on information available with the company.

35.13 An unsecured claimant obtained an order against the Company from the single Bench of the Honorable High Court of Delhi, confirming the order of a Sole Arbitrator. The Company has filed an appeal against the said order

with the Division Bench of Honorable High Court of Delhi. The Company is hopeful of getting a favorable order on merit; hence, no provision is made in the books of accounts for the claim..

35.14 The Company has advanced a sum of Rs.5822.08 Lakhs to Bharat Energy Ventures Pvt Limited (BEVPL), a holding company of a Power generating company and the Board has decided to seek equity shares of BEVL by converting the said advance paid by the company. However, in view of the interim restraint order of the High Court of Delhi which prohibits further investment in any other entity''s shares the company has informed BEVL not to issue shares till the said interim order is set aside.

35.17 The company had requested for the confirmation of balance from all the debtors, Confirmations received have been tied/reconciled. Amounts due to creditors have been reconciled with amounts confirmed by major parties. Group companies'' accounts are subject to confirmation and reconciliation.

35.18 Previous year''s figures have been regrouped / reclassified, wherever necessary, to correspond with the current year''s classification /

disclosure.

Mar 31, 2018

CORPORATE INFORMATION

BPL Limited (âthe Companyâ) is a public limited Company domiciled in India and incorporated on 16th of April, 1963 under the provisions of the Companies Act, 1956 having its registered office at BPL Works, Palakkad - 678 007, Kerala. The Company is listed on BSE and NSE. The Company is in the business of consumer electronic durable products.

1. Notes to Accounts

1.1 Non-Current Assets- Other receivables

The amount receivable from M/s Electronic Research Private Limited (ERPL) represents the amount due on account of disinvestment of equity shares of Bharat Energy Ventures Limited (BEVL) held by the company as investment earlier. BEVL is the main sponsor company of power generating company viz. BPL Power Projects (AP) Private Limited. BPL Limited intends to buy back the equity shares of BEVL from ERPL. However, in the view ofthe interim restraint order ofthe Honourable High Court of Delhi which prohibits further investment in any other entityâs shares, the Company is not in a position to doso till the said interim order is set aside. Hence, the amount receivable from ERPL is realizable over a period of time and it has been classified as considered good, even though it is due for more than six months.

a. Reconciliation of Tax Expense:

A reconciliation of the income tax provision to the amount computed by applying the statutory income tax rate to the income before income taxes is summarized below:

Fair Value Hierarchy:

The fairvalue of the assets and liabilities are included at the amount at which the instrument could be exchanged in a current transaction between willing parties, other than in forced or liquidation sale.

The table shown below analyses financial instruments carried at fairvalue, by valuation method. The different levels have been defined below:

Level 1: quoted prices (unadjusted) inactive markets for identical assets or liabilities

Level 2: inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (i.e., as prices) or indirectly (i.e., derived from prices)

Level 3: inputs for the asset or liability that are not based on observable market data (unobservable inputs)

The fair value of the financial assets and liabilities are included at the amount that would be received to sell an asset and paid to transfer a liability in an orderly transaction between market participants. The following methods and assumptions were used to estimate the fair values:

1. Fair Value of cash and short-term deposits, trade and other short term receivables, trade payables, other current liabilities, short term loans from banks and other financial instruments approximate their carrying amounts largely due to the short term maturities of these instruments.

3. Investments of equity shares valued at FVTOCI: The investee company is an unlisted company; the valuation is carried out by the independent valuer. Based on the valuation report, the fair value has been considered for the investments in equity shares. The methodology & key assumptionsapplied by the valuer as described below:

ii. Discount rate applied: Considered Risk free return on investments is around 8%. Business investments which carryall types of risks needs to have an allowance for the risk factor and 4% additional allowance is considered adequate to cover the risk. This is based on Beta factor of 0.47 and risk premium of 8.53%. Thus 12% has been assumed as âDiscounting factorâ while arriving at the present value of future cash flows of investee company.

Capital management

For the purpose of the Companyâs capital management, capital includes issued capital, additional paid in capital and all other equity reserves attributable to the equity shareholders. The primary objective of the Companyâs capital management is to maximise the shareholder value.

In order to achieve this overall objective, the companyâs capital management, amongst other things, aims to ensure that it meets its liabilities due. The Company manages its capital structure and makes adjustments in light of changes in economic conditions and the requirements of the financial covenants. The Company being debt-free, capital gearing ratio is not applicable.

Risk Management Framework

The Companyâs businesses are subject to several risks and uncertainties including financial risks. The Companyâs documented risk management polices act as an effective tool in mitigating the various financial risks to which the business is exposed to in the course of their daily operations. The risk management policies cover areas such as liquidity risk, foreign exchange risk, interest rate risk, counterparty and concentration of credit risk and capital management. Risks are identified through a formal risk management programme with active involvement of senior management personnel and business managers. The Company has in place risk management processes in line with the Companyâs policy. Each significant risk has a designated âownerâ within the Company at an appropriate senior level. The potential financial impact ofthe risk and its likelihood of a negative outcome are regularly updated.

The overall internal control environment and risk management programme including financial risk management is reviewed by the Audit Committee on behalf ofthe Board.

. The risk management frameworkaims . improve financial riskawarenessand risktransparency,

. identify, control and monitor key risks . identify riskaccumulations

. provide management with reliable information on the Companyâs risksituation

. improve financial returns

a) Finance Risk

The Companyâs Board approved financial risk policies comprise liquidity, currency, interest rate and counterparty risk. The Company does not engage in speculative treasury activity but seeks to manage risk and optimize interest through proven financial instruments.

b) Interest Rate Risk

The borrowings of the Company are denominated in Indian Rupees and principally at fixed interest rates. These exposures are reviewed by appropriate levels of management on a monthly basis.

c) Counterparty and concentration of credit risk

The Company is exposed to credit risk from its operating activities primarily trade receivables and also from its investing activities including deposits with banks, for receivables, cash and cash equivalents, short-term investments, financial guarantees. Credit risk on receivables is limited on the credit limit allowed to each and every counter party is based on their financial strength and payment performance. This credit limit is assessed on a periodic basis and necessary adjustments being done.

None of the Companyâs cash equivalents, including time deposits with banks, are past due or impaired. Regarding trade and other receivables, and other non-current assets, there were no indications as at March 31, 2018, that defaults in payment obligations will occur. The credit quality of the Companyâs customers is monitored on an ongoing basis and assessed for impairment where indicators of such impairment exist. The solvency of customers and their ability to repay the receivable is considered in assessing receivables for impairment. Where receivables are impaired, the Company actively seeks to recover the amounts in question and enforcecompliancewith credit terms.

d) Liquidity Risk

Liquidity risk is defined as the risk that the company will not be able to settle or meet its obligations on time or at a reasonable price. The Companyâs treasury department is responsible for maintenance of liquidity (including quasi liquidity), continuity of funding as well as timely settlement of debts. In addition, policies related to mitigation of risks are overseen by senior management. Management monitors the Companyâs net liquidity position on the basis of expected cash flows vis- a-vis debt service fulfilment obligation.

1.2 Related PartydisclosureinaccordancewithasperIndAS24:

Names of related parties and description of relationship

(i) Related parties where control exists - Nil

(ii) Other related parties in transactions with the company

a. Joint Venture/Partnership - Nil

b. Key Managerial Personnel (KMP) - 1. Mr. Ajit G Nambiar, Chairman & Managing Director

2. Mr. S.V. Ganesh, Chief Financial Officer

3. Mrs. Chitra M A, Company Secretary

(iii) Directors l.Mrs.AnjuChandrasekhar,Director

(Relative of Mr. Ajit G Nambiar)

2. Captain S. Prabhala, Independent Director

3. Mr. SurajMehta, Independent Director

(iv) RelativesofKMP - Mrs.AnjuChandrasekhar

(v) Others

a. Enterprises owned or significantly influenced - 1. Bharath Energy Ventures Ltd.,

by Key Management Personnel or their relatives, 2. BPL Telecom Private Ltd.

where transactions have taken place 3. BPL Technovision Private Ltd.,

4. Orion Construction Private Ltd.

5. Electronic Research Private Ltd.

6. Stallion Computers Private Ltd.

1.3 The BPL Limited entered into a transaction of purchase of land measuring 892.52 cents situated at Palakkad from BPL Telecom Pvt Ltd (BTPL) for approximate value around Rs. 40 crores. Since this transaction attracts Section 188 of the Companies Act, 2013, the special resolution has been passed by BTPL in Extraordinary General Meeting (EGM) held on 12.10.2016 at Palakkad for sale of property by BTPL.

1.4 Deposit Includes fixed deposits with banks Rs.5,00,000 marked as lien for Bank Guarantee No: 0392181GFIN0001 to

The Assistant Commissioner of Customs and Rs. 50,000 marked as lien for Bank Guarantee No: 0392151GPER0045 to VAT Department issued by Andhra bank.

1.5 Share Capital

Share Capital includes 21,930 Equity Shares of Rs 10/- each allotted as Fully Paid Up for consideration other than cash and 96,50,000 Equity Shares of Rs 10/- each allotted as Bonus Shares by Capitalization of General Reserve during an earlier period.

1.6 Borrowings

Land and building including Factory in Plot No 28-B and 29 at Doddaballapur Industrial Area situated in Sy Nos 79,92 and 93, KIADB of Veerapura Village, Kasaba Hobli, Doddaballapur Taluk, Bangalore District, admeasuring 3,40,627.85 sq fts (7.82 acres) and building plinth area of 16903.96 sq ft (Tentatively valued at INR 31.36Crs) and 2 apartments (Flat No.3D) at the Complex named Sundale Apartments admeasuring 1940 sq ft located at Municipal No. 55 (No.55 & 56) at the Osborne Road, Ulsoor, Bangalore are mortgaged for the purpose of Secured Overdraft of Rs.10.00 Crores from Andhra Bank.

Secured Overdrafts are secured by hypothecation of inventoriesand bookdebtsto Andhra Bank 2.10 1,69,58,682 Non- Convertible, Non-Cumulative 0.001% Preference Shares of Rs. 100/- each, were allotted on 23rd September, 2005, pursuant to the Scheme of Arrangement approved by the Hon. High Court of Kerala, Ernakulam. Out of which, 1,41,24,682 shares are redeemable in four equal installments at the end of the llth,12th,13th and 14th year and the balance of 28,34,000 shares are redeemable in ten equal installments commencing from 31st March, 2008.The Company is yet to redeem these preference shares and the amount outstanding as on 31st March 2018, was Rs.134.27 crores. The Company is making arrangements for the redemption of the above and the same will be redeemed in due course.

Financial liabilities are subject to fair valuation using effective interest method under para B.l.l.of âInd AS 109 Financial Instrumentsâ. Since, the effective interest rate to be used is the market rate, the differential between market rate and coupon rate/document rate should be adjusted to opening retained earnings. Considering the fact that these loans are to be paid on demand it has been classified as current and any fairvaluation impact has been ignored.

1.7 Warranty provision for the current year, provision has calculated at 1 % on total turnover, since supplier has offered the company for 1 % of free spares. During the year, warranty of Rs.87.43 lakhs provided.

1.8 Employee Benefits:

a. Actuarial Risk

It is the risk that benefits will cost more than expected. This can arise due to one of the following reasons

Adverse Salary Growth Experience: Salary hikes that are higher than the assumed salary escalation will result into an increase in Obligation at a rate that is higher than expected.

Variability in mortality rates: If actual mortality rates are higher than assumed mortality rate assumption than the Gratuity benefits will be paid earlier than expected. Since there is no condition ofvesting on the death benefit, the acceleration of cash flow will lead to an actuarial loss or gain depending on the relative values of the assumed salary growth and discount rate.

b. Investment Risk

c. Liquidity Risk

d. Market Risk

Market risk is a collective term for risks that are related to the changes and fluctuations of the financial markets. One actuarial assumption that has a material effect is the discount rate. The discount rate reflects the time value of money. An increase in discount rate leads to decrease in Defined Benefit Obligation of the plan benefits & vice versa. This assumption depends on the yields on the corporate/government bonds and hence the valuation of liability is exposed to fluctuations in the yields as at the valuation date

e. Legislative Risk/Regulatory Risk:

And the same will have to be recognized immediately in the year when any such amendment is effective.

f. Interest Rate Risk:

The defined benefit obligation calculated uses a discount rate based on government bonds. If bond yields fall, the defined benefit obligation will tend to increase.

g. Salary inflation risk

Higher than expected increases in salary will increase the defined benefit obligation.

h. Demographic risks:

This is the risk of volatility of results due to unexpected nature of decrements that include mortality attrition, disability and retirement. The effect of this decrement on the DBO depends upon the combination salary increase, discount rate, and vesting criteria and therefore not very straight forward. It is important not to overstate withdrawal rate because the cost of retirement benefit of a short caring employees will be less compared to long service employees.

ii) Contribution to Defined Benefit Plan, recognised as expense for the year: Rs.46.26 lakhs.

iii) Note on defined benefit plans

- Quantitative sensitivity analysis for significant assumptions; (Discount rate/ Salary Rate / Attrition rate):

How the Defined DBO would have been affected by 100 basis points changes in the actuarial assumptions namely discount rates, salary growth, Attrition & Mortality is shown below:

- Maturity profile of defined benefit obligation:

âThe company has started funding the liability through the medium of an insurance company.â&â Regular assessment is made by the insurance co of the increase in liability under certain assumptionsââ^â and contributions are being made to maintain the fund.â&â subject to credit risk ofthe insurance co & asset liability mismatch risk ofthe investments, the Company will be able to meet the past service liability on the valuation date that fall due during the next 1 yearâ

a) Expected Contributions to the plan in the financial year 2018-19 Rs. 26.13 lakhs.

b) Information on the maturity profile of the liabilities given below

1.9 There are no Micro and Small Enterprises to whom the company owes dues, which are outstanding for more than 45 days as at 31^s* March 2018. This information as required to be disclosed under the Micro, Small and Medium Enterprises Development Act, 2006, has been determined to the extent such parties have been identified on the basis of information available with the company

1.10 An unsecured claimant had obtained an arbitration award against the Company. The Company has filed an appeal against the said order as provided for in Arbitration and Conciliation Act, 1996. As the matter is sub-judice and the companyâs liability, if any, will crystallize upon completion of the legal proceedings, we are unable to quantity the liability as on date. Hence no liability has been created in the books nor reconsigned as contingent.

1.11 The Company has advanced a sum of Rs. 71,03,78,693/- to

Bharat Energy Ventures Limited (BEVL), a holding company of a Power generating company and the Board has decided to seek equity shares of BEVL by converting the said advance paid by the company. However, in view of the interim restraint order of the High Court of Delhi which prohibits further investment in any other entityâs shares the company has informed BEVL not to issue shares till the said interim order is set aside.

1.12 The company had requested for the confirmation of balance from all the debtors, Confirmations received have been tied/ reconciled. Amounts due to creditors have been reconciled with amounts confirmed by major parties. Group companiesâ accounts are subject to confirmation and reconciliation.

1.13 FirsttimeadoptionoflndAS

These are the Companyâs first financial statements prepared in accordance with Ind AS. The accounting policies set out in note 1 have been applied in preparing the financial statements for the year ended 31 March 2018, the comparative information presented in these financial statements as at and for the year ended 31 March 2017 and in the preparation of the opening Ind AS balance sheet at lApril 2016 (the Companyâs date of transition). In preparing its opening Ind AS balance sheet, the Company has adjusted the amounts reported previously in financial statements prepared in accordance with the accounting standards notified under section 133 of the Companies Act, 2013, read together with paragraph 7 of the Companies (Accounts) Rules, 2014 (âprevious GAAPâ or âIndian GAAPâ). An explanation of how the transition from previous GAAP to Ind AS has affected the Companyâs financial position, financial performance and cash flows is set out in the following tables and notes.

A. Ind AS optional exemptions

Al. Deemed cost for property, plant and equipment, investment property and intangible assets

Ind AS 101, First-time Adoption of Indian Accounting Standards, permits a first-time adopter to elect to fair value all of its property, plant and equipment and use that as its deemed cost as at the date of transition after making necessary adjustments for de-commissioning liabilities. Ind AS 101 - First-time adoption of Indian Accounting Standards, also permits a first-time adopter to elect to continue with the carrying value for all of its property, plant and equipment as recognised in the financial statements as at the date of transition to Ind AS, measured as per the previous GAAP and use that as its deemed cost as on the date of transition after making necessary adjustments for de-commissioning liabilities.

The company recognized and carried under cost model i.e. cost less accumulated depreciation and impairment loss, if any which is akin to recognition criteria under erstwhile GAAP.

B. Ind AS mandatory exemptions Bl. Estimates

In accordance with Ind AS, as at the date of transition to Ind AS an entityâs estimates shall be consistent with the estimates made for the same date in accordance with previous GAAP (after adjustments to reflect any difference in accounting policies), unless there is objective evidence that those estimates were in error.

Ind AS estimates as at 1 April 2016 are consistent with the estimates as at the same date made in conformity with previous GAAP.

B2. Classification and measurement of financial assets and liabilities

The classification and measurement of financial assets is made considering whether the conditions as per Ind AS 109 Financial Instruments are met based on facts and circumstances existing at the date of transition.

Financial assets can be measured using effective interest method by assessing its contractual cash flow characteristics only on the basis of facts and circumstances existing at the date of transition and if it is impracticable to assess elements of modified time value of money i.e. the use of effective interest method, fair value of financial asset at the date of transition shall be the new carrying amount of that asset. The measurement exemption applies for financial liabilities as well.

Applying a requirement is impracticable when the entity cannot apply it after making every reasonable effort to do so. It is impracticable to apply the changes retrospectively if:

a) The effects of the retrospective application or retrospective restatement are not determinable; or

b) The retrospective application or restatement requires assumptions about what managementâs intent would have been in that period; or

c) The retrospective application or retrospective restatement requires significant estimates of amounts and it is impossible to distinguish objectively information about those estimates that existed at that time.

B3. De-recognition of financial assets and liabilities

Ind AS 101 First-time Adoption of Indian Accounting Standards, requires a first-time adopter to apply the derecognition provisions of Ind AS 109, Financial Instruments, prospectively for transactions occurring on or after the date of transition to Ind AS. However, Ind AS 101 First-time Adoption of Indian Accounting Standards, allows a firsttime adopter to apply the de-recognition requirements in Ind AS 109, Financial Instruments, retrospectively from a date of the entityâs choosing, provided that the information needed to apply Ind AS 109, Financial Instruments, to financial assets and financial liabilities derecognised as a result of past transactions was obtained at the time of initially accounting for those transactions.

The Company has elected to apply the de-recognition provisions of Ind AS 109, Financial Instruments, prospectively from the date of transition to Ind AS.

C. Reconciliations between previous GAAP and Ind AS

Ind AS 101 requires an entity to reconcile equity, total comprehensive income and cash flows for prior periods. The following tables represent the reconciliations from previous GAAP to Ind AS.

C5 Reconciliation of cash flows for the year ended March 31, 2018

The transition from erstwhile Indian GAAP to Ind AS has not made a material impact on the statement of cash flows C6. Retrospective impacts of transition from previous GAAP to IND AS on assets and liabilities have been adjusted against âOther Equityâ on 1st April 2016.

Mar 31, 2015

1.1 There are no secured loans at the end of the reporting period.

1.2 Share Capital

1.2.1 Share Capital includes 21,930 Equity Shares of Rs. 10/- each allotted as Fully Paid Up for consideration other than cash and 96,50,000 Equity Shares of Rs. 10/- each allotted as Bonus Shares by Capitalisation of General Reserve during an earlier period.

1.2.2 1,69,58,682 Non- Convertible, Non- Cumulative 0.001% Preference Shares of Rs. 100/- each, were allotted on 23rd September, 2005, pursuant to the Scheme of Arrangement approved by the Hon. High Court of Kerala, Ernakulam. Out of which, 1,41,24,682 shares are redeemable in four equal installments at the end of the 11th,12th,13th and 14th year and the balance of 28,34,000 shares are redeemable in ten equal installments commencing from 31st March, 2008. The Company is yet to redeem these preference shares and the amount outstanding as on 31st March 2015, was Rs. 22.67crores. Company is making arrangements for the redemption of the above and the same will be redeemed in due course.

1.3 There are no Micro and Small Enterprises to whom the company owes dues, which are outstanding for more than 45 days as at 31st March 2015. This information as required to be disclosed under the Micro, Small and Medium Enterprises Development Act, 2006, has been determined to the extent such parties have been identified on the basis of information available with the company.

1.4 As the company has no qualifying assets as defined in Accounting Standard 16, amount of borrowing cost that are directly attributable to the acquisition, construction or production of a qualifying asset have not been capitalised.

1.5 In accordance with the provisions of Accounting Standard 17, the Company has only one reporting segment viz, Electronic Industry. Segmental reporting as defined is therefore not applicable.

1.6 No Provision for tax has been made for current period in view of losses made by the Company. Deferred Tax Asset as envisaged by Accounting Standard 22 has been created by the company to the extent reasonable certainty exists for the future profitability. The components of Deferred Tax Asset are as follows:

1.7 The amount provided by the company in the books of account towards gratuity is sufficient to cover the actuarial value of liability as certified by an external valuer. However, due to shortage of funds, the company is yet to fund the full actuarial liability under the scheme administered by LIC of India. As per the agreement with employees, the company has no liability for payment of leave encashment to its employees.

1.8 The company has obtained confirmation of balances from its debtors. The balances due to creditors including Group Companies are subject to confirmation/ reconciliation.

1.9 Extra Ordinary Item of Rs. 223.34 lakhs in the Profit and Loss account represents the write back of balances pertains to discontinued business.

1.10 Remuneration has been paid/provided to the Chairman & Managing Director based on the approval received from the Central Government vide its letter B70022835/2013-CL-VII dated 17th October 2013.

1.11 Scheme of Arrangement for reduction of capital: The Company has charged a sum of Rs. 131.43 crores being the losses earlier treated as Deferred Tax Asset (DTA) to the Statement of Profit & Loss as per the Accounting Standards. The Company has decided to implement a Scheme of Arrangement (SOA) to set off the accumulated losses of Rs.184.09 crores against the entire credit balance in share premium account through a court approved scheme. The SOA has been approved by the SEBI, Stock Exchanges and members of the Company. Accordingly, the share premium account and the balance in Statement of Profit & Loss represent gross figures. The approval from the Honourable High Court of Kerala is awaited.

1.12 Employees Stock Option Scheme (ESOP) : The last date for exercising the stock options granted to the eligible employees and directors of the company was 8th November, 2012 and the details of options exercised, lapsed and other relevant particulars were covered in the previous financial year. Since, the company has not granted any further options later and accordingly, the details as required to be furnished under ESOP scheme is not applicable to the current financial year.

1.13 Previous year's figures have been regrouped/ reclassified, wherever necessary, to correspond with the current year's classification/ disclosure.

Mar 31, 2014

1.1 Pursuant to settlement agreement with M/s Peagasus Assets Reconstruction Pvt. Ltd., someof the assets comprsingof Land and Building are heldby themassecurity against indemnity obligations survivingtill 29th March 2014. Assetssosecured are: Residential PropertiesatPoonamChambers,Mumbai, Ashok Bhavan, New Delhi&Land and Building at Doddaballapur Taluk,Bangalore.

1.2 The Company has createdachargeinfavour ofM/s Asia Pragati Capfin Pvt. Ltd (APCL) New Delhi,onthe following immoveable properties which are offeredascollateral security onbehalfof its subsidary, Bharat Energy Ventures Limited (BEVL) in connection with issue of noncumulative debentures of Rs. 23 Crores by BEVL to APCL. a)Land situated at Survey No. 89 together with buildings & structures thereon situated at Cheemasandra Village, Bidarahalli Hobli, Hoskote Taluk, Bangalore Dist. b)Land situated at Survey No. 56/ 57 of Hebbagodi Village, Attibele Hobli, Anekal Taluk, Bangalore Dist. c)Land together with buildings and structures at plot no. 7 (part) at Survey No. 598 situated at Annuppparpalayam Village, Ward NO. 5 (New No. 7) Coimbatore Town.

2. Contingent Liabilities and Commitments

2.1 Contingent Liabilities Rs Claims against the company not acknowledged as debt 31st March 2014 31st March 2013

Cental Excise 5,15,55,820 4,90,23,392

Customs 6,65,66,447 6,65,66,447

Service Tax 10,15,211 98,48,238

Sales Tax 30,24,99,659 30,17,22,999

Guarantees 20,00,00,000 20,00,00,000

2.2 Total - Contingent Liabilities and Commitments 62,16,37,137 62,71,61,076 Other Notes to Balance Sheet

In the opinion of the Board, none of the assets has a value lower on realization in the ordinary course of business than the amount at which they are stated in the Balance Sheet.

2.3 There are no secured loans at the end of the reporting period.

2.3 Share Capital

2.3.1 Share Capital includes 21,930 Equity Shares of Rs. 10/- each allotted as Fully Paid Up for consideration other than cash and 96,50,000 Equity Shares of Rs. 10/- each allotted as Bonus Shares by Capitalisation of General Reserve during an earlier period.

2.3.2 1,69,58,682 Non- Convertible, Non- Cumulative 0.001% Preference Shares of Rs. 100/- each, were allotted on 23rd September, 2005, pursuant to the Scheme of Arrangement approved by the Hon. High Court of Kerala, Ernakulam. Out of which, 1,41,24,682 shares are redeemable in four equal installments at the end of the 11th,12th,13th and 14th year and the balance of 28,34,000 shares are redeemable in

ten equal installments commencing from 31st March, 2008. The Company is yet to redeem these preference shares and the amount outstanding as on 31st March 2014, was Rs. 17 crores.

2.4 There are no Micro and Small Enterprises to whom the company owes dues, which are outstanding for more than 45 days as at 31st March 2014. This information as required to be disclosed under the Micro, Small and Medium Enterprises Development Act, 2006, has been determined to the extent such parties have been identified on the basis of information available with the company.

2.5 As the company has no qualifying assets as defined in Accounting Standard 16, amountofborrowing cost that are directly attributable to the acquisition, construction

or production of a qualifying asset have not been capitalised.

2.6 In accordance with the provisions of Accounting Standard 17, the Company has only one reporting

segment viz, Electronic Industry. Segmental reporting as defined istherefore not applicable.

2.7 Related Party disclosure in accordance with Accounting Standard18:

2.9 No Provision for tax has been made for current period in view of losses made by the Company. Deferred Tax Asset as envisaged by Accounting Standard 22 has been created by the company to the extent reasonable certainty exists for the future profitability The components of Deferred

2.10 The amount provided by the company in the books of account towards gratuity is sufficient to cover the actuarial value of liability as certified by an external valuer. However, due to shortage offunds, the company is yet to fund the full actuarial liability under the scheme administered by LIC of India. Contribution to Superannuation Fund (defined Contribution Plan) is yet tobe fundedto LICofIndia due to shortageoffunds. As per the agreement with employees, the company has no liability for payment of leave encashment to its employees.

2.11 The company has obtained confirmation of balances from its debtors. The balances due to creditors including Group Companies are subject to confirmation/ reconciliation.

2.12 Remuneration has been paid/provided to the Chairman & Managing Director based on the approval received from the Central Government vide its letter B70022835/2013-CL-VII dated 17th October, 2013.

2.13 Previous year''s figures have been regrouped/ reclassified, wherever necessary, to correspond with the current year''s classification/ disclosure.

Mar 31, 2013

1.1 There are no secured loans at the end of the reporting period.

1.3 Share Capital

1.3.1 Share Capital includes 21,930 Equity Shares of Rs. 10/- each, allotted as Fully Paid Up for consideration other than cash and 96,50,000 Equity Shares of Rs. 10/- each, allotted as Bonus Shares by Capitalisation of General Reserve during an earlier period.

1.3.2 1,69,58,682 Non- Convertible, Non-Cumulative 0.001% Preference Shares of Rs. 100/- each, were allotted on 23rd September, 2005, pursuant to the Scheme of Arrangement approved by the Hon. High Court of Kerala, Ernakulam. Out of which, 1,41,24,682 shares are redeemable in four equal installments at the end of the 11th,12th,13thand 14th year and the balance of 28,34,000 shares are redeemable in ten equal installments commencing from 31st March, 2008. The Company is yet to redeem these preference shares and the amount outstanding as on 31st March, 2013, was Rs. 17 crores.

1.3.3 The Company has instituted an Employees Stock Option Plan BPL ESOS-2009 as approved by the Board of Directors and Shareholders of the Company in 2009 for issuance of stock options convertible into equity shares not exceeding 20,00,000 Options in the aggregate to the employees of the Company as well as that of its subsidiaries and also to non-executive directors including Independent Directors of the Company and its subsidiaries at the price determined as per the SEBI (ESOS) Guidelines, 1999. The said scheme is administered by the Compensation Committee of the Board. The Company had granted 5,17,739 stock options to eligible employees and directors of the Company at an exercise price of Rs. 10/- per share during the financial year 2009-10. The options granted under the Scheme shall vest after 12 months from the date of grant. The options vested shall be capable of being exercised within a period of 12 months from the date of vesting and the equity shares arising on exercise of options shall not be subjected to any lock-in. The options were granted to the employees at Rs. 10/- each, being the face value of the shares of the Company. In view of this, the intrinsic value on the date grant (being the excess of market price of share under the Scheme over the exercise price of the option) has been accounted by the Company. Pursuant to this, the Company had issued 159,937 shares to the eligible employees during the year 2011-12 and 214,637 shares during 2012-13. 143,165 options were not exercised& hence, lapsed.

1.4 There are no Micro and Small Enterprises to whom the company owes dues, which are outstanding for more than 45 days as at 31st March 2013. This information as required to be disclosed under the Micro, Small and Medium Enterprises Development Act, 2006, has been determined to the extent such parties have been identified on the basis of information available with the company.

1.5 As the company has no qualifying assets as defined in Accounting Standard 16, amount of borrowing cost that are directly attributable to the acquisition, construction or production of a qualifying asset have not been capitalised.

1.6 In accordance with the provisions of Accounting Standard 17, the Company has only one reporting segment viz, Electronic Industry. Segmental reportingas defined is therefore not applicable.

1.7 No provision for tax has been made for current period in view of losses made by the Company. Deferred Tax Asset as envisaged by Accounting Standard 22 has been created by the company to the extent reasonable certainty exists for the future profitability. The components of Deferred Tax Asset are as follows:

1.8 The amount provided by the company in the books of account towards gratuity is sufficient to cover the actuarial value of liability as certified by an external valuer. However, due to shortage of funds, the company is yet to fund the full actuarial liability under the scheme administered by LIC of India. Contribution to Superannuation Fund (defined Contribution Plan) is yet to be funded to LIC of India due to shortage of funds. As per the agreement with employees, the company has no liability for payment of leave encashment to its employees.

1.9 The company has obtained confirmation of balances from its debtors. The balances due to creditors including Group Companies are subject to confirmation/ reconciliation.

1.10 Extra-Ordinary item of Rs. 38.18 lakhs in the Statement of Profit and Loss represents the write back of Provision for Expenses made during earlieryears.

1.11 Remuneration has been paid/provided to the Chairman & Managing Director based on the approval received from the Central Government vide its letterA40400111-CL-VII dated 24th April, 2009.

1.12 Previous year''s figures have been regrouped/ reclassified, wherever necessary, to correspond with the current year''s classification/ disclosure.

1.13 Reconciliation of Basic and Diluted Shares used in computing Earning per Share

Mar 31, 2012

1.1.1 Notes on Long Term Borrowings

Term loan from Banks Rs. Nil (Rs. 11724.25 lakhs) was secured by a pledge of BPL Brand excluding BPL Brand of Colour Television and is secured by equitable mortgage by way of deposit of title deeds of immovable properties of the company in Coimbatore and residential property in Bangalore and land in Hoskote and is secured by equitable mortgage of leasehold property in Chennai and loans of Rs.Nil (Rs. 100.00 Lakhs) was secured by a common pool of all the assets of the company situated at Palakkad, Doddaballapur, Dobespet and Bommasandra and pledge of 2,26,90,000 equity shares held by the Company in Sanyo BPL Private Limited and a Personal Guarantee of the Managing Director (pending execution), ranking paripassu, with all the lenders.

There has been no continuing default as on Balance Sheet date in respect of repayment of loans and interest.

2.1 During the course of the year, the Company has settled the Secured Loan ofRs. 100.00 lakhs of Central Bank of India along with Interest accrued and due there on and Secured Loans ofRs. 11724.25 lakhs of Peagasus Assets

Reconstruction Private Limited. These loans are settled out of the sale proceeds of land at Dobaspet, land at Hosur Road and the remaining liability waived by the lenders, arising on such settlement amounting to Rs. 2959.30 lakhs has been treated as extra- ordinary income.

2.2 Share Capital

2.2.1 Share Capital includes 21,930 Equity Shares of Rs. 10/- each, allotted as fully paid-up for consideration other than cash and 96,50,000 Equity Shares ofRs. 10/- each, allotted as Bonus Shares by Capitalization of General Reserve during an earlier period.

2.2.2 1,69,58,682 Non-Convertible, Non- Cumulative 0.001% Preference Shares of Rs. 100/- each, are redeemable in four equal installments at the end of the 11th,12th,13th and 14th year. The Preference Shares were allotted on 15th December, 2005.

2.2.3 The Company has instituted an Employees Stock Option Plan - BPL ESOS-2009 as approved by the Board of Directors and Shareholders of the Company in 2009 for issuance of stock options convertible into equity shares not exceeding 20,00,000 Options in the aggregate to the employees of the Company as well as that of its subsidiaries and also to non-executive directors including Independent Directors of the Company and its subsidiaries at the price determined as per the SEBI (ESOS) Guidelines, 1999. The said scheme is administered by the Compensation Committee of the Board. The Company had granted 5,17,739 stock options to eligible employees and directors of the Company at an exercise price ofRs. 10/- per share, during the financial year 2009-10. The options granted under the Scheme shall vest after 12 months from the date of grant. The options vested shall be capable of being exercised within a period of 12 months from the date of vesting and the equity shares arising on exercise of options shall not be subjected to any lock-in. The options were granted to the employees at Rs. 10/- each, being the face value of the shares of the Company. In view of this, the intrinsic value on the date grant (being the excess of market price of share under the Scheme over the exercise price of the option) has been accounted by the company. Pursuant to this, the Company had issued 1,59,937 equity shares to the eligible employees and directors who exercised the vested options during the year.

2.3 There are no Micro and Small Enterprises, to whom the company owes dues, which are outstanding for more than 45 days as at 31st March 2012. This information as required to be disclosed under the Micro, Small and Medium Enterprises Development Act, 2006 has been determined to the extent such parties have been identified on the basis of information available with the company.

2.4 As the company has no qualifying assets as defined in Accounting Standard 16, amount of borrowing cost that are directly attributable to the acquisition, construction or production of a qualifying asset have not been capitalized.

2.5 In accordance with the provisions of Accounting Standard 17, Company has only one reporting segment viz, Electronic Industry. Segmental reporting as defined is therefore, not applicable.

2.6 No provision for tax has been made for current period in view of tax losses made by the Company. Deferred Tax Asset as envisaged by Accounting Standard 22 has been created by the company to the extent reasonable certainty exists for the future profitability. The components of Deferred Tax Asset are as follows:

2.7 The amount provided by the company in the book of account towards gratuity is sufficient to cover the actuarial value of liability as certified by an external valuer. However, due to shortage of funds, the company is yet to fund the full actuarial liability under the scheme administered by LIC of India. Contribution to Superannuation Fund (defined Contribution Plan) is yet to be funded to LIC of India due to shortage of funds. As per the agreement with employees, the company has no liability for payment of leave encashment to its employees.

2.8 The Company has obtained confirmation of balances from its debtors. The balances due to creditors including Group Companies are subject to confirmation/ reconciliation.

2.9 Extra-ordinary item of Rs. 200.70 lakhs in the Statement of Profit and Loss represents the net effect of reduction in value of Loans & Advances (Rs. 1000.41 lakhs), Provision for diminution of investments (Rs. 2159.58 lakhs) and Secured Loans liability no longer required written back (Rs. 2959.30lakhs).

2.10 Remuneration has been paid/provided to the Chairman & Managing Director based on the approval received from the Central Government vide itsletterA40400111-CL-VII dated24thApril, 2009.

2.11 The revised Schedule VI has become effective from 1st April, 2011 for the preparation of financial statements. This has significantly impacted the disclosure and presentation made in the financial statements. Previous year's figures have been regrouped/ reclassified wherever necessary to correspond with the current year's classification/ disclosure.

2.12 Reconciliation of Basic and Diluted Shares used in computing Earnings per Share

Mar 31, 2011

1. Share Capital includes 21,930 Equity Shares of Rs. 10/- each, allotted as fully paid up for consideration other than cash and 96,50,000 Equity Shares of Rs. 10/- each, allotted as Bonus Shares by Capitalisation of General Reserve during an earlier period.

2. 1,69,58,682 Non-convertible, Non-cumulative 0.001% Preference Shares of Rs. 100/- each, are redeemable in four equal installments at the end of the 11th,12th,13th and 14th year. The Preference Shares were allotted on 15th December, 2005.

3. The Company has instituted an Employees Stock Option Plan Ã BPL Ã ESOS-2009 as approved by the Board of Directors and Shareholders of the Company in 2009 for issuance of stock options convertible into equity shares not exceeding 20,00,000 Options in the aggregate to the employees of the Company as well as that of its subsidiaries and also to non-executive directors including Independent Directors of the Company and its subsidiaries at the price determined as per the SEBI (ESOS) Guidelines, 1999. The said scheme is administered by the Compensation Committee of the Board. During the year, the Company has granted 5,17,739 stock options to eligible employees and directors of the Company at an exercise price of Rs. 10/- per share. The options granted under the Scheme shall vest after 12 months from the date of grant. The options vested shall be capable of being exercised within a period of 12 months from the date of vesting and the equity shares arising on exercise of options shall not be subjected to any lock-in. The options were granted to the employees at Rs. 10/- each, being the face value of the shares of the Company. In view of this, the intrinsic value on the date of grant (being the excess of market price of share under the Scheme over the exercise price of the option) has been accounted by the Company.

4. The loans / borrowings stated in Schedule 3 represent restated balances for lenders based on the option selected by them respectively. However, confirmation of balance is yet to be obtained. Interest on the loans have been provided/paid based on the option selected by the lender.

Loans are secured by:

I. Loans of Rs. 11724.25 Lakhs referred to in B of Schedule 3 is secured by a pledge of BPL Brand excluding BPL Brand of Colour Television and is secured by equitable mortgage by way of deposit of title deeds of immovable properties of the company in Coimbatore and residential property in Bangalore and land in Hoskote and is secured by equitable mortgage of leasehold property in Chennai and loans of Rs. 100.00 lakhs refrred to in A of Schedule 3 are secured by a common pool of all the assets of the company situated at Palakkad, Doddaballapur, Dobespet and Bommasandra and pledge of 2,26,90,000 equity shares held by the Company in SANYO BPL Private Limited and a personal guarantee of the Managing Director (pending execution), ranking paripassu, with all the lenders.

5. There are no Micro and Small Enterprises, to whom the company owes dues, which are outstanding for more than 45 days as at 31st March, 2011. This information as required to be disclosed under the Micro, Small and Medium Enterprises Development Act, 2006 has been determined to the extent such parties have been identified on the basis of information available with the company.

6. The particulars of Investments in Partnership Firms :

a) Kodi Properties : The Company had, during earlier years, invested an amount of Rs. 378.42 lakhs as Capital and has a share of profit of 98%. The total capital of the firm is Rs. 387.47 lakhs. The share of profits of other partners in the firm are; Electronic Research Private Limited and BPL Telecom Private Ltd. - 1.00% each.

b) Wellworth Electronics : The Company had,during earlier years, invested an amount of Rs. 9.64 lakhs as Capital and has a share of profit of 25%. The total capital of the firm is Rs. 32.53 lakhs.The shares of profits of other partners in the firm are; BS Refrigerators Limited, BS Appliances Limited and BST Limited is 25% each. The firm incurred a loss of Rs. 1700/- and the companys share of loss of Rs. 425/- has been recognised in current period based on the audited accounts of the firm.

7. Cenvat benefits on purchases have been accounted for in accordance with the provisions of Accounting Standard 2. Cenvat credit receivable has been included under the head Advances.

8. As the company has no qualifying assets as defined in Accounting Standard 16, amount of borrowing cost that are directly attributable to the acquisition, construction or production of a qualifying asset have not been capitalised.

9. In accordance with the provisions of Accounting Standard 17, Company has only one reporting segment viz, Electronic industry. Segmental reporting as defined is therefore not applicable.

10. The Companys restructuring proposal has been approved under CDR System vide letter dated 25th November, 2004. The salient features of terms of restructuring is waiver of certain percentage of principal amount of loans outstanding as on cut off date, reduction of rate of interest on loans retained and transfer of CTV division to JV company as a going concern. Profitability of residual business of the company, Balance Sheet and Cash flow were assessed by an independent authority. Based on their report, the management is confident of earning sufficient revenue to meet its liabilities and commitments. On the basis of above information, the current financial period accounts have been prepared on a going concern basis.

11. Related Party disclosure in accordance with Accounting Standard 18:

Name of the related parties and description of relationship :

1. Subsidiaries : BPL Display Devices Limited and Bharat Energy Ventures Limited

2. Joint Venture : SANYO BPL Private Limited

3. Companies where : Dynamic Electronics Private Limited, Orion Constructions Company Private Limited, ER Computers Directors have control Private Limited, Phoenix Holdings Private Limited, Stallion Computers Private Limited, Electro Investment Private Limited, Nambiar International Investment Company Private Limited, BPL Telecom Private Limited, BPL Techno Vision Private Limited, BPL Power Projects (AP) Private Limited, BPL FTA Energies Private Limited, Electronic Research Private Limited and NI Micro Technologies Private Limited

4. Key Management Personnel : Mr. Ajit G Nambiar, Chairman & Managing Director

12. The Company does not have any Ãlease arrangementÃ as defined under Accounting Standard 19.

13. The Companys provision of gratuity existing in books is sufficient to cover the actuarial value of liability as certified by external valuer. However, due to shortage of funds, the company is yet to fund the full actuarial liability under the scheme administered by LIC of India. Contributions to Superannuation Fund (defined Contribution Plan) is yet to be funded to LIC of India an account of shortage of funds.

14. The Company is yet to obtain confirmation of balances from its debtors and for advances. Provisions have been made based on reconcilation carried out.

15. Extra-Ordinary item of Rs. 2286.22 lakhs in the Profit and Loss Account represents the net effect of reduction in value of Sundry Creditors and Advances.

16. Remuneration has been paid/provided to the Chairman & Managing Director based on the approval received from the Central Government vide its letter No. A40400111-CL-VII dated 24th April, 2009.

17. Figures pertaining to previous years have been regrouped/ rearranged, wherever necessary, to conform with the current years presentation.

18. Contingent Liabilities :

a) Estimated amount of contracts remaining to be executed on Capital Account and not provided on 31st March, 2011 - Rs. nil (Rs. nil).

b) Demand against the Company not acknowledged as debts disputed in appeal as on 31st March, 2011 : Central Excise Rs. 490.23 lakhs ( Rs. 490.23 lakhs),Customs Duty Rs. 668.77 lakhs (Rs. 668.77 lakhs), Sales Tax Rs. 1722.93 lakhs (Rs. 1987.93 lakhs). The amounts are based on demands raised by the respective authorities.

c) No reimbursements are expected from Contingent Liabilities.

d) Deed of Guarantee favouring Allahabad Bank towards financial assistance of Rs. 2000 lakhs sanctioned by them to BPL Display Devices Limited.

e) As per CDR Scheme, lenders have a recompense clause for economic loss due to restructuring, which would be met out of any future cash flows of the company. It is not possible to quantify the liability, if any, that may arise.

Mar 31, 2010

1. Share Capital includes 21,930 Equity Shares of Rs 10/- each, allotted as fully paid-up for consideration other than cash and 96,50,000 Equity Shares of Rs. 10/- each, allotted as Bonus Shares by Capitalisation of General Reserve during an earlier period.

2 . 1,69,58,682 Non-convertible Non-cumulative 0.001% Preference Shares of Rs. 100/- each, are redeemable in four equal instalments at the end of the 11th,12th,13th and 14th year. The Preference Shares were allotted on 15th December, 2005.

3 . The loans / borrowings stated in Schedule 3 represent restated balances for lenders based on the option adopted by them respectively.

However, confirmation of balance is yet to be obtained. In accordance with the terms of debt restructuring, the Company was to pay quarterly instalments of Rs. 6,578.62 lakhs commencing from May, 2008. Due to lack of funds, the payment has not been made. Interest on the loans have been provided based on the options selected by the lenders. Loans are secured by:

I. Loans of Rs. 6537.84 Lakhs referred to in B of Schedule 3 is secured by a pledge of BPL Brand excluding BPL Brand of Colour Television.

II. Loans of Rs. 4097.26 lakhs referred to in B of Schedule 3 is secured by equitable mortgage by deposit of title deed of immovable property of the company in Coimbatore and residential property in Bangalore and land in Hoskote. III. Loans of Rs. 1807.03 lakhs referred to in B of Schedule 3 is secured by equitable mortgage of leasehold property in Chennai and by a lien of fixed deposit with the bank. IV. Loans of Rs. 312.08 lakhs referred in B of Schedule 3 is secured by equitable mortgage by deposit of title deeds of the Immovable property of the company situated at Taj Naval District, Pune. V. Loans of Rs. 13179.43 lakhs referred to B of Schedule 3 and loans of Rs. 100.00 lakhs refrred to in A of Schedule 3 are secured by a common pool of all the assets of the company situated at Palakkad, Doddaballapur, Dobespet and Bommasandra and pledge of 2,26,90,000 Equity Shares held by the Company in SANYO BPL Private Limited and a personal guarantee of the Managing Director (pending execution), ranking paripassu, with all the lenders.

4. There are no Micro and Small Enterprises, to whom the company owes dues, which are outstanding for more than 45 days as at 31st March, 2010. This information as required to be disclosed under the Micro, Small and Medium Enterprises Development Act, 2006, has been determined to the extent such parties have been identified on the basis of information available with the company.

5. The particulars of Investments in Partnership Firms :

a) Kodi Properties : The Company had, during earlier years, invested an amount of Rs. 378.42 lakhs as capital and has a share of profit of 98%. The total capital of the firm is Rs. 387.47 lakhs. The share of profits of other partners in the firm are; Electronic Research Private Limited and BPL Telecom Private Limited 1.00% each.

b) Wellworth Electronics : The Company had during earlier years, invested an amount of Rs. 9.64 lakhs as capital and has a share of profit of 25%. The total capital of the firm is Rs. 32.53 lakhs. The share of profits of other partners in the firm are; BS Refrigerators Limited, BS Appliances Limited and BST Limited is 25% each. The firm incurred a loss of Rs. 1700/- and the companys share of loss of Rs. 425/- has been recognised in current period based on the audited accounts of the firm.

6. Cenvat benefits on purchases have been accounted for, in accordance with the provisions of Accounting Standard 2. Cenvat credit receivable has been included under the head Advances.

7. As the company has no qualifying assets as defined in Accounting Standard 16, amount of borrowing cost that are directly attributable to the acquisition, construction or production of a qualifying asset have not been capitalised.

8. In accordance with the provisions of Accounting Standard 17, the Company has only one reporting segment viz, Electronic Industry. Segmental reporting as defined is therefore not applicable.

9. The Companys restructuring proposal has been approved under CDR system vide letter dated 25th November, 2004. The salient features of terms of restructuring is waiver of certain percentage of principal amount of loans outstanding as on cut off date, reduction of rate of interest on loans retained and transfer of CTV division to a JV company as a going concern. Profitability of residual business of the company, Balance Sheet and Cash Flow were assessed by an independent authority. Based on their report, the management is confident of earning sufficient revenue to meet its liabilities and commitments. On the basis of above information, the current financial period accounts have been prepared on a going concern basis.

10. Related Party disclosure in accordance with Accounting Standard 18:

1. Subsidiaries : Bharat Energy Ventures Limited, BPL Securities Private Limited and BPL Display Devices Limited

2. Joint Venture : SANYO BPL Private Limited

3. Companies where : Dynamic Electronics Private Limited, Orion Constructions Company Private Limited, ER Computers Private Directors have control Limited, Phoenix Holdings Private Limited, Stallion Computers Private Limited, Electro Investment Private

Limited, Nambiar International Investment Co. Private Limited, BPL Telecom Private Limited, BPL Techno Vision Private Limited, BPL Power Projects (AP) Private Limited, BPL FTA Energies Private Limited, Electronic Research Private Limited and NI Micro Technologies Private Limited

4. Key Management Personnel : Mr. Ajit G Nambiar, Chairman & Managing Director

11. The Company does not have any "lease arrangement" as defined under Accounting Standard 19.

12. The Company has decided to discontinue the business of Engineering Plastics and designs solutions in the previous year. The assets pertaining to the same are sold in the current financial year except Land and Buildings. The loss on sale of tangible assets of Rs. 530.47 lakhs and impairment loss on assets of Rs 310.44 lakhs are recognised in the accounts.

13. The Companys provision of Gratuity as existing in books is sufficient to cover the actuarial value of liability as certified by external valuer. However, due to shortage of funds, the company is yet to fund the full actuarial liability under the scheme administered by LIC of India.

14. The Company is yet to obtain confirmation of balances from its debtors and for advances. Provisions have been made based on reconcilations carried out.

15. Extra-ordinary item of Rs. 376 lakhs in the Profit and Loss

Account represents the net effect of reduction in value of Secured Loans, Sundry Creditors and Advances.

16. Remuneration has been provided to the Chairman & Managing Director based on the approval received from the Central Government, vide its letter bearing No A40400111-CL-VII dated 24th April, 2009.

17. Figures pertaining to previous years have been regrouped/ re-arranged wherever necessary, to conform with the current years presentation.

18. Contingent Liabilities :

a) Estimated amount of contracts remaining to be executed on Capital Account and not provided on 31st March, 2010 Rs. Nil lakhs (Rs. Nil).

b) Demands against the company not acknowledged as debts disputed in appeals as on 31st March, 2010 : Central Excise Rs. 490.23 lakhs ( Rs 455.51 lakhs),Customs Duty Rs 668.77 lakhs (Rs.668.77 lakhs), Sales Tax Rs. 1987.93 lakhs (Rs. 2291.37 lakhs). The amounts are based on demands raised by the respective authorities.

c) No reimbursements are expected from Contingent Liabilities.

d) Deed of Guarantee favouring Allahabad Bank towards financial assistance of Rs 2000 lakhs sanctioned by them to BPL Display Devices Limited.

e) As per CDR Scheme, lenders have a recompense clause for economic loss due to restructuring, which would be met out of any future cash flows of the company. It is not possible to quantify the liability, if any, that may arise.

Disclaimer: This is 3rd Party content/feed, viewers are requested to use their discretion and conduct proper diligence before investing, GoodReturns does not take any liability on the genuineness and correctness of the information in this article