Home  »  Company  »  Aarti Ind. Ltd  »  Quotes  »  Notes to Account
Enter the first few characters of Company and click 'Go'

Notes to Accounts of Aarti Industries Ltd.

Mar 31, 2015

1. CONTINGENT LIABILITIES AND COMMITMENTS (to the extent not provided for):

(RS. in Lakhs)

As at As at

31st March,2015 31st March,2014 (i) Contingent Liabilities:

(a) Claims against the Company not acknowledged as Debts 4,855.80 3,908.53

(b) Letters of Credit, Bank Guarantees & Bills Discounted 3,318.44 7,539.89

8,174.24 11,448.42

(ii) Commitments:

(a) Estimated amount of contracts remaining to be executed on capital 2,604.04 1,108.28 account and not provided for, net of advances

2,604.04 1,108.28

TOTAL 10,778.28 12,556.70

2. There are no Micro and Small Enterprise, 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 Enterprise Development Act, 2006 has been determined to the extent such parties have been identified on the basis of information available with the Company.

3. Interest received of RS. 395.29 Lakhs (Tax Deducted at Source RS. 33.53 Lakhs) [previous year RS. 334.77 Lakhs (Tax Deducted at Source RS. 29.14 Lakhs)] is netted off against interest paid on Working Capital.

4.. In the opinion of the Board, except as otherwise stated, the Current Assets and Loans and Advances have a value on realization at least equal to amounts at which they are stated in the Balance Sheet.

5. RELATED PARTY DISCLOSURE UNDER ACCOUNTING STANDARD (AS: 18):

I Following are the Subsidiaries of the Company as defined in Para 3(a) of Accounting Standard - 18.

1.Aarti Corporate Services Ltd. 2. Nascent Chemical Industries Ltd. (Through its holding Company:Aarti Corporate Services Ltd.)

3.Shanti Intermediates Pvt. Ltd. 4. Anushakti Specialities Limited (Through its holding Company: Liability Partnership (LLP) Company: Aarti Corporate Services Ltd.)

5. Alchemie (Europe) Ltd. 6. Innovative Envirocare Jhagadia Ltd

II Following are the Associates of the Company as defined in Para 3(b) of the Accounting Standard - 18.

1. Ganesh Polychem Ltd. 2. Anushakti Chemicals and Drugs Ltd.

3. Anushakti Holdings Ltd. 4. Aarti Biotech Ltd. (Through its holding Company: Aarti Corporate Services Ltd.)

5. Aarti Intermediates Pvt. 6. Perfect Enviro Control Systems Ltd. Ltd. (Through its holding (Through its holding Company: Aarti Company: Aarti Corporate Corporate Services Ltd.) Services Ltd.)

III Following are the Enterprises/Firms over which controlling individuals/Key Management Personnel, of the Company along with their relatives, have significant influence as defined in Para 3(e) of the Accounting Standard - 18.

1. Alchemie Industries 2. Gogri and Sons Investments Pvt. Ltd.

3. Alchemie Leasing and 4. Alchemie Laboratories Financing Pvt. Ltd.

5. Aarti Drugs Ltd. 6. Alchemie Dye Chem Pvt. Ltd.

IV Following are the individuals who with their relatives as defined in Para 3(c) and 3(d) of the Accounting Standard - 18 own Directly/indirectly 20% or more voting power in the Company or have significant influence or are Key Management Personnel.

Sr.No. Name Status

1. Shri Rajendra V.Gogri Director

2. Smt. Hetal Gogri Gala Director

3. Shri Rashesh C.Gogri Director

4. Shri Shantilal T.Shah Director 5. Shri Parimal H.Desai Director

6. Shri Kirit R.Mehta Director

7. Shri Manoj M.Chheda Director

8. Shri Renil R.Gogri Director

9. Smt. Mona Patel Company Secretary

10. Shri Chetan Gandhi Chief Financial Officer 6. EMPLOYEE BENEFITS:

Defined Benefit Plan

The employees'' gratuity fund scheme managed by Life Insurance Corporation of India is a defined benefit plan. The present value of obligation is determined based on actuarial valuation using the Projected Unit Credit Method, which recognizes each period of service as giving rise to additional unit of employee benefit entitlement and measures each unit separately to build up the final obligation.

7. DERIVATIVES & FORWARD CONTRACT INSTRUMENTS:

(A) The Company uses Forward Exchange Contract to hedge against its Foreign Exchange exposures relating to underlying transactions and firm commitments. The Company does not enter into any derivatives instruments for Trading or Speculative purposes.

As at 31st March, 2015 the Company had hedged in aggregate an amount of RS. 15,747.61 Lakhs (previous year RS. 299.50 Lakhs) out of its annual trade related operations (Exports & Imports) aggregating to RS. 182,575.79 Lakhs (previous year RS. 160,963.49 Lakhs).

The Company had hedged its currency risks to the tune of RS. 9,839.14 Lakhs (previous year RS. 11,980.00 Lakhs), in respect of its long term Foreign Currency Loans/Borrowings. Relating to the same, the Company had also swapped its floating interest rate borrowing of RS. 13,622.89 Lakhs (previous year RS. 19,010.75 Lakhs) into a fixed rate loan through an interest rate swap.

(B) Net foreign exchange loss of RS. 1,742.87 Lakhs (previous year RS. 2,121.63 Lakhs) is included in Profit & Loss Account.

8. The figures of previous year have been regrouped and rearranged wherever necessary.


Mar 31, 2014

(Rs in Lakhs) As at As at March, 2014 31st March, 2013 31st

1. CONTINGENT LIABILITIES AND COMMITMENTS (to the extent not provided for): (i) Contingent Liabilities:

(a) Claims against the Company not acknowledged as Debts 3,908.533, 870.11

(b) Letters of Credit, Bank Guarantees & Bills Discounted 7,539.898, 052.43

11,448.42 11,922.54

(ii) Commitments:

(a) Estimated amount of contracts remaining to be executed on capital accountand not provided for, net of advances 1,108.28 3,697.63

1,108.28 3,697.63

TOTAL 12,556.70 15,620.17

2. There are no Micro and Small Enterprise, 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 Enterprise Development Act, 2006 has been determined to the extent such parties have been identified on the basis of information available with the Company.

3. Interest received ofRs 334.77 Lakhs (Tax Deducted at Source Rs 29.14 Lakhs) [previous year Rs 411.98 Lakhs (Tax Deducted at Source Rs 9.21 Lakhs)] is netted off against interest paid on Working Capital.

4. In the opinion of the Board, except as otherwise stated, the Current Assets and Loans and Advances have a value on realization at least equal to amounts at which they are stated in the Balance Sheet.

Note:

The Company is a multi-product and multi-faceted one. The performance were earlier classified into four segments viz. Performance Chemicals, Agri-Intermediates & Fertilisers, Pharmaceuticals and Home & Personal Care Chemicals based on the end-use/applications.

In case of Performance Chemicals Segment and Agri Intermediates & Fertilizers Segment, a majority of manufacturing facilities are common and interlinked. As a result the segmental performance for these two segments would fluctuate based on the product mix adopted at each reporting period.

Thus for better interpretation of the operations resulting on account of these interchangeable facilities, it is decided to merge these two segments into a single reportable segment under the name of "Speciality Chemicals". Hence the performance of the Company shall be reclassified into three segments viz. Speciality Chemicals, Pharmaceuticals and Home & Personal Care Chemicals. This also facilitates the disclosure of Capital Employed for each segment, which earlier was not possible on account of common manufacturing facilities. This change does not have any financial impact.

5. RELATED PARTY DISCLOSURE UNDER ACCOUNTING STANDARD (AS: 18):

I Following are the Subsidiaries of the Company as defined in Para 3(a) of Accounting Standard -18.

1. Aarti Corporate Services Ltd.

2. Nascent Chemical Industries Ltd. (Through its holding Company: Aarti Corporate Services Ltd.)

3. Shanti Intermediates Pvt. Ltd. (Through its holding Company: Aarti Corporate Services Ltd.)

4. Anushakti Specialities Limited Liability Partnership (LLP)

5. Alchemie (Europe) Ltd.

6. Innovative Envirocare Jhagadia Ltd.

II Following are the Associates of the Company as defined in Para 3(b) of the Accounting Standard -18.

1. Ganesh Polychem Ltd. 2. Anushakti Chemicals and Drugs Ltd.

3. Anushakti Holdings Ltd.

Ill Following are the Enterprises/Firms over which controlling individuals/Key Management Personnel, of the Company along with their relatives, have significant influence as defined in Para 3(e) of the Accounting Standard -18.

1. Alchemie Pharma Chem Ltd. 2. Alchemie Industries 3. Gogh and Sons Investments Pvt. Ltd. 4. Alchemie Leasing and Financing Pvt. Ltd. 5. Alchemie Laboratories 6. Aarti Drugs Ltd. 7. Alchemie Dve Chem Pvt. Ltd.

IV Following are the individuals who with their relatives as defined in Para 3(c) and 3(d) of the Accounting Standard -18 own Directly/indirectly 20% or more voting power in the Company or have significant influence or are Key Management Personnel.

Name Status

1.Shri Rajendra V. Gogh Director

2.Smt. Hetal Gogh Gala Director

3.Shri Rashesh C. Gogri Director

4.Shri ShantilalT Shah Director

5.Shri Parimal H. Desai Director

6.Shri Kirit R. Mehta Director

7.Shri Manoj M. Chheda Director

8.Shri Renil R. Gogri Director

6. EMPLOYEE BENEFITS:

Defined Benefit Plan

The employees'' gratuity fund scheme managed by Life Insurance Corporation of India is a defined benefit plan. The present value of obligation is determined based on actuarial valuation using the Projected Unit Credit Method, which recognizes each period of service as giving rise to additional unit of employee benefit entitlement and measures each unit separately to build up the final obligation.

The estimate of rate of escalation in salary considered in actuarial valuation, takes into account inflation, seniority, promotion, other relevant factors including supply and demand in the employment market.The above information is certified by the actuary.

Leave Encashment:

Leave Encashment liability amounting to Rs 346.88 Lakhs (previous year Rs 274.38 Lakhs) has been provided in the Books of Accounts.

7. DERIVATIVES & FORWARD CONTRACT INSTRUMENTS:

(A) The Company uses Forward Exchange Contract to hedge against its Foreign Exchange exposures relating to underlying transactions and firm commitments. The Company does not enter into any derivatives instruments for Trading or Speculative purposes.

As at 31st March, 2014 the Company had hedged in aggregate an amount of Rs 299.50 Lakhs (previous yearRs 4,887.00 Lakhs) out of its annual trade related operations (Exports & Imports) aggregating toRs 160,963.49 Lakhs (previous yearRs 128,851.98 Lakhs).

The Company had hedged its currency risks to the tune of Rs 11,980.00 Lakhs (previous year Rs Nil) in respect of its long term Foreign Currency Loans/Borrowings. Relating to the same, the Company had also swapped its floating interest rate borrowing of Rs 19,010.75 Lakhs (previous yearRs 9,160.41 Lakhs) into a fixed rate loan through an interest rate swap.

(B) Net foreign exchange loss ofRs 2,121.63 Lakhs (previous yearRs 154.14 Lakhs) is included in Profit & Loss Account.


Mar 31, 2013

(Rs. in Lakhs)

For the Year For the Year Ended Ended 31st March'' 2013 31st March'' 2012

1. CONTINGENT LIABILITIES AND COMMITMENTS (to the extent not provided for):

(i) Contingent Liabilities:

(a) Claims against the company not acknowledged as Debts 3''870.11 2''198.28 (b) Letters of Credit'' Bank Guarantees & Bills Discounted 8''052.43 4''401.76

11''922.54 6''600.04

(ii) Commitments:

(a) Estimated amount of contracts remaining to be executed on capital account and not provided for'' net of advances 3''697.63 1''112.03

3''697.63 1''112.03

TOTAL 15''620.17 7''712.07

2. There are no Micro and Small Enterprise'' 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 Enterprise Development Act'' 2006 has been determined to the extent such parties have been identifed on the basis of information available with the Company.

3. Interest received of Rs. 411.98 Lakhs (Tax Deducted at Source Rs. 9.21 Lakhs) [previous year Rs. 104.17 Lakhs (Tax Deducted at Source Rs. 8.98 Lakhs)] is netted of against interest paid on Working Capital.

4. In the opinion of the Board'' except as otherwise stated'' the Current Assets and Loans and Advances have a value on realization at least equal to amounts at which they are stated in the Balance Sheet.

5. EMPLOYEE BENEFITS: Defned Beneft Plan

The employees'' gratuity fund scheme managed by Life Insurance of India is a defned beneft plan. The present value of obligation is determined based on actuarial valuation using the Projected Unit Credit Method'' which recognizes each period of service as giving rise to additional unit of employee beneft entitlement and measures each unit separately to build up the fnal obligation.

6. DERIVATIVES & FORWARD CONTRACT INSTRUMENTS:

(A) The Company uses Forward Exchange Contract to hedge against its Foreign Exchange exposures relating to underlying transactions and frm commitments. The Company does not enter into any derivatives instruments for Trading or Speculative purposes.

As at 31st March'' 2013 the Company had hedged in aggregate an amount of Rs. 4''887.00 Lakhs (previous year Rs. Nil) out of its annual trade related operations (Exports & Imports) aggregating to Rs. 128''851.98 Lakhs (previous year Rs. 85''928.24 Lakhs). The Company had hedged its currency risks to the tune of Rs. Nil (previous year Rs. 587.02 Lakhs) in respect of its long term Foreign Currency Loans/Borrowings. Relating to the same'' the Company had also swapped its foating interest rate borrowing of Rs. 9''160.41 Lakhs (previous year Rs. 4''734.74 Lakhs) into a fxed rate loan through an interest rate swap.

(B) Net foreign exchange loss of Rs. 154.14 Lakhs (previous year Rs. 196.14 Lakhs) is included in Proft & Loss Account.

7. The fgures of previous year have been regrouped and rearranged wherever necessary.


Mar 31, 2012

1.1 Note on Issued, Subscribed and Paid-up Equity Share Capital:

[a] 843,649 (As at 31st March, 2011 - 843,649) were issued to Shareholders of Surfactant Specialities Ltd. pursuant to its Merger with the Company.

[b] 42,000 (As at 31st March, 2011 - 42,000) were issued to Shareholders of Avinash Drugs Ltd. pursuant to its Merger with the Company.

[c] 3,025,000 (As at 31st March, 2011 - 3,025,000) were issued towards Preferential allotment at a premium of Rs 30.65 paise to Warrantholders.

[d] 2,400,000 (As at 31st March, 2011 - NIL) have been issued towards Preferential allotment at a premium of Rs 53/- to Warrantholders.

1.2 The Company has received balance money on conversion of 2,400,000 Equity Share Warrants issued on preferential basis into fully paid Equity Shares of Rs 1,392.00 Lakhs, during the year and the money has been utilized for the purposes as stated in the "Objects of the Issue" i.e. to augment the Long Term Funds to meet on going Capital Expenditure and Long Term Working Capital requirements of the Company.

2.1 a) ECB/Term Loans from Banks/Financial Institutions, are secured/to be secured by way of Joint Equitable Mortgage of the Company's immovable properties situated at Sarigam, Vapi and Jhagadia, in the State of Gujarat and further by way of hypothecation of all moveable plant & machinery, machinery spares,tools and accessories and other movables, both present and future (except book debts & inventories) wherever situated.

b) Vehicle Loans from Banks/Financial Institutions are secured by way of hypothecation of respective vehicles.

3.1 Working Capital Loans availed from Scheduled Banks, are secured/to be secured by hypothecation of Raw Materials, Stock- In-Process, Semi-Finished Goods, Finished Goods, Packing Materials and Stores and Spares, Bills Receivables and Book Debts and all other moveable, both present and future. Also by way of Joint Equitable Mortgage of the Company's immovable properties situated at Sarigam, Vapi and Jhagadia, in the State of Gujarat being second to the charge held by ECB/Term Lenders and further by way of hypothecation of all moveable plant & machinery, machinery spares, tools and accessories and other movables, both present and future (except book debts & inventories) wherever situated.

4.1 Gross Block of Plant & Machinery includes assets given on Lease with Gross Block Rs 163.95 Lakhs as on 31st March, 2012 (previous year Rs 163.95 Lakhs)

4.2 Additions to Gross Block includes an amount of Rs 668.81 Lakhs being the net foreign exchange loss, arising on account of restatement of Long-term Foreign Currency Loans outstanding as at 31st March, 2012.

4.3 Process Development is being amortized over a period of 5 years (The balance shall be amortized in next financial year, it being the last year of amortization).

4.4 Current year depreciation includes Rs 87.44 Lakhs (previous year Rs 88.74 Lakhs) on Assets deployed for Research & Development.

For the Year For the Year Ended Ended 31st March, 2012 31st March, 2011

5. CONTINGENT LIABILITIES AND COMMITMENTS (to the extent not provided for):

(i) Contingent Liabilities

(a) Claims against the Company not acknowledged as Debts 2,198.28 1,215.18

(b) Letters of Credit, Bank Guarantees & Bills Discounted 4,401.76 4,024.46

6,600.04 5,239.64

(ii) Commitments

(a) Estimated amount of contracts remaining to be executed on capital account and not provided for, net of advances 1,112.03 1,278.96

1,112.03 1,278.96

TOTAL 7,712.07 6,518.60

6. There are no Micro and Small Enterprise, 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 Enterprise Development Act, 2006 has been determined to the extent such parties have been identified on the basis of information available with the Company.

7. Interest received of Rs 104.17 Lakhs (Tax Deducted at Source Rs 8.98 Lakhs) [previous year Rs 11.50 Lakhs (Tax Deducted at Source Rs 1.38 Lakhs)] is netted off against interest paid on Working Capital.

8. In the opinion of the Board, except as otherwise stated, the Current Assets and Loans and Advances have a value on realization at least equal to amounts at which they are stated in the Balance Sheet.

1 Segmental Capital Employed:

Fixed assets used in the Company's business or liabilities contracted have not been identified to any of the reportable segments, as the fixed assets and services are used interchangeably between segments. The Company believes that it is currently not practicable to provide segment disclosures relating to capital employed.

2 Re-Classification of Business Segments:

For better understanding of businesses, the Company has reclassified its business segments based on the nature of product and their respective end-uses. Based on the same, the Company has reclassified its business segments into Performance Chemicals, Agri-Intermediates & Fertilizers, Pharmaceuticals and Home & Personal Care. This change does not have any financial impact.

9. EMPLOYEE BENEFITS:

Defined Benefit Plan

The employees' gratuity fund scheme managed by Life Insurance Corporation of India is a defined benefit plan. The present value of obligation is determined based on actuarial valuation using the Projected Unit Credit Method, which recognizes each period of service as giving rise to additional unit of employee benefit entitlement and measures each unit separately to build up the final obligation.

10. DERIVATIVES & FORWARD CONTRACT INSTRUMENTS:

(A) The Company uses Forward Exchange Contract to hedge against its Foreign Exchange exposures relating to underlying transactions and firm commitments. The Company does not enter into any derivatives instruments for Trading or Speculative purposes.

As at 31st March, 2012 the Company had hedged in aggregate an amount of Rs Nil (previous year Rs Nil) out of its annual trade related operations (Exports & Imports) aggregating to Rs 85,928.24 Lakhs (previous year Rs 74,868.90 Lakhs).

The Company had hedged its currency risks to the tune of Rs 587.02 Lakhs (previous year Rs 1,900.00 Lakhs) in respect of its long term Foreign Currency Loans/Borrowings. Relating to the same, the Company had also swapped its floating interest rate borrowing of Rs 4,734.74 Lakhs (previous year Rs 4,906.00 Lakhs) into a fixed rate loan through an interest rate swap.

(B) Net foreign exchange loss of Rs 196.14 Lakhs (previous year net foreign exchange loss of Rs 220.27 Lakhs) is included in Statement of Profit & Loss.

11. The figures of previous year have been regrouped and rearranged wherever necessary.


Mar 31, 2010

1. CONTINGENT LIABILITIES:

a) Claims against the Company not acknowledged as Debts Rs. 1,671.36 Lakhs (Rs. 129.77 Lakhs as on 31.03.2009).

b) In respect of Letters of Credit, Bank Guarantees issued and Bills discounted by the Companys Bankers Rs. 4,836.78 Lakhs (Rs. 2151.13 Lakhs as on 31.03.2009).

c) Estimated amount of Contracts remaining to be executed on capital account and not provided for, net of advances, Rs. 121.43 Lakhs (Rs. 174.76 Lakhs as on 31.03.2009).

2. The Company has received Rs. 970.57 Lakhs on the conversion of Preferential Warrants into Equity Shares during the year. The total amount of Rs. 1078.41 Lakhs which includes the applicationmoney for the Preferential Warrants of Rs. 107.84 Lakhs, has been utilized for the purpose of augmenting the long term funds to meet on-going capital expenditure and long term working capital requirements of the Company.

3. SECURED LOANS:

Security for Loans taken from Banks:

a) In case of the Non Convertible Debentures of Rs. 10,000.00 Lakhs (Rs.10,000.00 Lakhs as on 31.03.2009) are secured by way of Joint Equitable Mortgage of the Companys immovable properties situated at Sarigam, Vapi and Jhagadia, in the State of Gujarat and further by way of hypothecation of all moveable plant & machinery, machinery spares, tools and accessories and other movables, both present and future (except book debts & inventories) wherever situated. The NCDs are issued in the year 2008-09 and are redeemable in five equal installments commencing from the end of the 3rd year from the date of allotment of these Debentures.

b) Outstanding Term Loans aggregating to Rs. 2,451.89 Lakhs (Rs. 5,109.78 Lakhs as on 31.03.2009) from banks subject to (c) and (d) below, are secured by way of Joint Equitable Mortgage of the Companys immovable properties situated at Sarigam, Vapi and Jhagadia, in the State of Gujarat further by way of hypothecation of all moveable plant & machinery, machinery spares, tools and accessories and other movables, both present and future (except book debts & inventories) wherever situated. Out of the above,Term Loans aggregating to Rs. 1,601.89 Lakhs (Rs. 3,156.49 Lakhs as on 31.3.2009) are also personally guaranteed by three Directors of the Company.

c) In case of vehicle loans from banks/NBFC of Rs. 21.81 Lakhs (Rs. 30.21 Lakhs as on 31.03.2009) against hypothecation of the vehicles.

d) External Commercial Borrowing (ECB) of JPY 832.50 Million equivalent to Rs. 3,016.13 Lakhs (Rs. 4,780.58 Lakhs as on 31.03.2009) availed from Royal Bank of Scotland (earlier known as ABN AMRO Bank N.V.) Singapore are secured by way of Joint Equitable Mortgage of the Companys immovable properties situated at Sarigam, Vapi and Jhagadia, in the State of Gujarat and further by way of hypothecation of all moveable plant & machinery, machinery spares, tools and accessories and other movables, both present and future (except book debts & inventories) wherever situated.

e) Working Capital Loans of Rs. 24,610.70 Lakhs (Rs. 23,519.91 Lakhs as on 31.03.2009) availed from Scheduled Banks, are secured by hypothecation of Raw Materials, Stock-In-Process, Semi-Finished Goods, Finished Goods, Packing Materials and Stores and Spares, Bills Receivables and Book Debts and all other moveable, both present and future. Further, by way of Joint Equitable Mortgage of the Companys immoveable properties situated at Sarigam, Vapi and Jhagadia in the State of Gujarat, ranking second to that of Banks mentioned in (a), (b) and (d) above. These loans are personally guaranteed by three Directors of the Company.

4. DEFERRED TAX LIABILITIES: (Rs. in Lakhs)

5. In the opinion of the Board, except as otherwise stated, the Current Assets and Loans and Advances have a value on realization at least equal to amounts at which they are stated in the Balance Sheet.

6. Interest received of Rs. 54.72 Lakhs (Tax Deducted at Source Rs. 7.05 Lakhs) [previous year Rs. 79.35 Lakhs (Tax Deducted at Source Rs. 11.78 Lakhs)] is netted off against interest paid on Working Capital.

7. Sundry Debtors, Loans and Advances include amounts due from - (figures in bracket relate to previous year)

8. Sales and other sales incomes are inclusive of conversion charges amounting to Rs. 194.62 Lakhs (previous year Rs. 307.80 Lakhs), export benefits amounting to Rs. 142.88 Lakhs (previous year Rs. 627.93 Lakhs), Fertilizer subsidy amounting to Rs. 1,106.06 Lakhs (previous year Rs. 2213.74 Lakhs) and insurance claim on goods lost by fire Rs. Nil (previous year Rs. 49.78 Lakhs).

9. STAFF COSTS (FACTORY AND OFFICE) INCLUDE:

10. Revenue Expenditure of Rs. 265.49 Lakhs (previous year Rs. 166.47 Lakhs) [including depreciation of Rs. 30.45 Lakhs (previous year Rs. 29.74 Lakhs)] on Research & Development activities at the Companys R&D Centre is charged to Profit and Loss Account for the year. Capital Expenditure includes Rs. 235.16 Lakhs (previous year Rs. 540.00 Lakhs) towards Fixed Assets purchased for Research & Development activities at the Companys R&D centre.

11. DIRECTORSREMUNERATION INCLUDES:

Note: The above figures include Rs. 20.85 Lakhs (previous year Rs. 18.80 Lakhs) paid towards Research & Development activities at the Companys R&D centre. The above figure does not include contributions made to Group Gratuity Fund, Group Mediclaim & Group Personal Accident as separate figures are not available for the Directors. Value of Perquisites includes non Cash Perquisites of Rs. 1.83 !.:-.khs (previous year Rs. Nil)

12. PRIOR YEARS ADJUSTMENT INCLUDES:

13. There are no Micro and Small Enterprise, 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 Enterprise Development Act, 2006 has been determined to the extent such parties have been identified on the basis of information available with the Company.

14. RELATED PARTY DISCLOSURE UNDER ACCOUNTING STANDARD (AS: 18):

I. Following are the Subsidiaries of the Company as defined in Para 3(a) of Accounting Standard - 18.

1. Aarti Healthcare Limited 2. Aarti Corporate Services Limited

3. Alchemie Europe Limited

II. Following are the associates of the Company as defined in Para 3(b) of the AS -18, with which there were transactions during the year.

1. Ganesh Polychem Limited 2. Anushakti Chemicals & Drugs Limited

III. Following are the Enterprises/Firms over which controlling individuals/key Management Personnel, of the Company along with their relatives, have significant influence as defined in para 3(e) of the AS -18 and with which there were transactions during the year.

1. Alchemie Pharma Chem Limited 2. Alchemie Industries

3. Gogri and Sons Investments Private Limited 4. Shanti Intermediates Private Limited

5. Alchemie Leasing and Financing Private Limited 6. Nascent Chemical Industries Limited

7. Alchemie Laboratories 8. Aarti Drugs Limited

15. EMPLOYEE BENEFITS:

Defined Benefit Plan

The employees gratuity fund scheme managed by Life Insurance of India is a defined benefit plan. The present value of obligation is determined based on actuarial valuation using the Projected Unit Credit Method, which recognizes each period of service as giving rise to additional unit of employee benefit entitlement and measures each unit separately to build up the final obligation.

The estimate of rate of escalation in salary considered in actuarial valuation, take into account inflation, seniority, promotion, other relevant factors including supply and demand in the employment market. The above information is certified by the actuary.

Leave Encashment:

Leave Encashment liability amounting to Rs.139.74 Lakhs (previous year Rs. 98.36 Lakhs) has been provided in the Accounts.

16. DERIVATIVES & FORWARD CONTRACT INSTRUMENTS:

(A) The Company uses Forward Exchange Contract to hedge against its Foreign Exchange exposures relating to underlying transactions and firm commitments. The Company does not enter into any derivatives instruments for Trading or Speculative purposes.

The Company had hedged in aggregate an amount of Rs. 705.60 Lakhs (previous year Rs. 3,950.00 Lakhs) out of its Trade related operations (Exports & Imports) aggregating to Rs. 73,107.76 Lakhs (previous year Rs. 81,335.21 Lakhs).

The Company had hedged its currency risks to the tune of Rs. 4,200.00 Lakhs (previous year Rs. 5,000.00 Lakhs) in respect of its long term Foreign Currency Loans/Borrowings. Relating to the same, the Company had also swapped its floating interest rate borrowing of Rs. 1,100.00 Lakhs (previous year Rs. 2,000.00 Lakhs) into a fixed rate loan through an interest rate swap.

(B) Exchange gain net of exchange loss of Rs. 408.96 Lakhs (previous year net exchange loss of Rs. 559.94 Lakhs) is included in Profit & Loss Account.

17. Additional information pursuant to the Provisions of Paragraph 3,4C, 4D and Part II of Schedule VI to the Companies Act, 1956 (figures in brackets relate to previous year).

 
Subscribe now to get personal finance updates in your inbox!