Mar 31, 2015
1. RELATED PARTY DISCLOSURE
Disclosure in respect of Related Parties pursuant to Accounting
Standard 18
(A) List of Related Parties
(i) Holding Company
Hindalco Industries Limited
(ii) Subsidiaries Company
Aditya Birla Chemicals (Belgium) BVBA
(iii) Fellow Subsidiaries Company
Utkal Alumina International Limited
Renuka Investment and Finance Limited
(iv) Key Managerial Personnel
Mr. K.C. Jhanwar (Managing Director)
(iv) Significant Influence
Tanfac Industries Ltd.
B.2 Power (electricity) purchase as well as sale (supply) to UPPCL &
JSEB has been accounted for in the accounts as sale/purchase of power.
B.3 In the opinion of the management, Current Assets, Loan and
Advances would realize, at least, at the value stated in the Balance
Sheet, in the normal course of business.
B.4 Stores & Spares consumed includes replacement of Spare parts of
Plant & Machinery, as per consistent policy followed by the company.
B.5 Statutory dues include Rs.1025.00 Lacs (Previous Year Rs. 879.36
Lacs) towards liability made under Entry Tax of Goods Act, 2007 (UP)
which is disputed.
B.6 The depreciation expense charged for the year ended March, 31 2015
is lower by Rs 2537.82 Lacs arising out of difference in useful lives
of fixed assets as per Schedule XIV of Companies Act 1956 Act and
Schedule II of Companies Act, 2013.
B.7 The Company has a process whereby periodically all long term
contracts are assessed for material foreseeable losses. At the year
end, the Company has reviewed and ensured that adequate provision as
required under any law / accounting standards for material foreseeable
losses on such long term contracts has been made in the books of
account. The Company did not have any derivative contracts as at
balance sheet date
B.8 Figures of previous year have been regrouped / rearranged wherever
necessary
Mar 31, 2014
B.1 Segment information
The Company is primarily engaged in Chlor Alkali Chemicals. Since the
inherent nature of entire business activities is governed by the same
act of risk and returns, there is no reportable segment. Company does
not have reportable secondary segment.
B.2 CONTINGENT LIABILITIES & PROVISIONS
SNO Particulars As at As at
March March
31,2014 31,2013
A) Contingent Liabilities not provided for in
respect of the following:
a) Outstanding Bank Guarantees (Against which 2.203.72 1,787.09
Rs. Nil has been deposited as FDR with Banks,
Previous year Rs. 316 lacs)
b) Claims/Disputed liabilities against the Company
not acknowledged as debt
i) a) Annual Minimum Guarantee Electricity charges
& delayed payment surcharge thereon against which
Rs.100 lacs (previous year Rs.100 lacs) has been
deposited (The order of Consumer Grievance Redressal
Forum relating to Annual Minimum Guarantee case
was challenged byJSEB before Ranchi High Court. On
hearing, the Ranchi High Court directed J SEB to
raise the bill in accordance with the Forum''s order
subject to final adjudication of fending writ.
Complying with Forum''s order, JSEB has raised bill
which involved a refund of Rs 17.80 Eacs to the
Company. Since the writ is fending before the Court,
contingent liability of Rs.6S62.84 lacs has been
disclosed in the accounts). 6,562.84 6,562.84
b) Delayed payment of surcharge on the amount of
fuel surcharge arrears 483.63 483.63
ii) Amount claimed by the Kandla Port Trust not
acknowledge by company, matter is pending before
the Court. 382.60 382.60
iii) Income Tax
a) AY 2007-08 for which the Company has filed appeal
with CIT (Appeals) and Petition u/s 154 has been
filed for considering correct amount of TDS &
Advance Tax 197.02 197.02
b) AY 2008-09 for which the Company has filed appeal
with CIT (Appeals) and Petition u/s 154 has been
filed for considering correct amount of TDS 357.32 357.32
c) AY2010-11 for which the Company has filed appeal
with CIT (Appeals) and Petition u/s 154 has been
filed for reducing demand (Against which Rs.19.09
lacs paid) 141.78 141.78
d) Various other cases for which the Company has
filed appeal with CIT (Appeals) 8.44 8.44
iv) Liquidated damage and interest claimed by BSIDC
not acknowledged by the Company 171.22 157.20
v) Compensation payable against various labour cases
pending with various Courts 156.00 156.00
vi) Incremental Lease Rent with Interest to Tata
Motors Ltd. as per the order of High court 45.56 42.42
vii) Sales Tax
AY 2003-04 for which the Company has filed writ
no.l811/2007 before Allahabad High Court against Dy
Commissioner(A), Sonebhadra Order (due to non
submission of certificate of Trade tax check post
at Nepal Border Rs.1.63 lac was deposited) and
disallowance byjt. Commissioner (corporate),
Sonebhadra of VAT credit for Asst.
Year 2007-08 and 2008-09 18.19 10.86
viii) Excise
a) For the Period (2000-01 to 2006-07): Demand of
Excise duty on clearance of SBP to M/s UNICEF
without payment of Excise duty under Notification
No. 108/95 CE. Case is pending before CESTAT,
New Delhi 60.42 60.42
b) For the Period (June''03- March'' 07): Case
against demand raised for excise duty is pending
before CESTAT, New Delhi 533.46 533.46
c) For the Period (April''04- September''08): Case
against demand raised for excise duty is pending
before CESTAT, Kolkata 525.70 525.70
d) Various other cases pending before excise
department, High Court & CESTAT 12.40 14.76
ix) Service tax
a) Demand of Service Tax for the period April'' 05-
June'' 06. Cases were pending before CESTAT,
New Delhi. 159.55 141.21
b) Demand of penalty on service tax on banking
and other financial services availed by company for
issue of FCCB. Cases were pending before
CESTAT, New Delhi . 25.11 25.11
c) For the Period (January''05- August''07): Case
against demand raised for Service Tax is filed
Appeal before CESTAT, Kolkata 105.02 Nil
B.3 RETIREMENT BENEFITS
The details of the Company''s defined benefit plans for its employees
are as under:
There are no amounts included in the fair value of Plan Assets for:
- Company''s own financial instrument
- Property occupied by or other assets used by the company
Expected rate of return on assets is based on the average long term
rate of return (assumed rate on return) expected on investments of the
funds during the estimated term of the obligations.
There are no amounts included in the fair value of Plan Assets for:
- Company''s own financial instrument
- Property occupied by or other assets used by the company
Expected rate of return on assets is based on the average long term
rate of return expected on investments of the funds during the
estimated term of the obligations.
In respect of Defined contribution schemes-
The Company contributes 12% of salary for all eligible employees
towards Provident Fund managed by Approved Trust. The company also
contributes a 15% of salary for eligible employees as per scheme
towards Superannuation Funds managed by Approved Trusts.
The Company has recognised the following amount as an expense and
included in the Notes B.27 "Contribution to Provident Fund and other
Funds":
The shortfall of interest on Trust Managed Funds compared to statutory
rates (presently Nil), if any, arising in future is not recognised as
the Guidance Note from Actuarial Society of India is yet to be issued
in relation to this.
B.4 RELATED PARTY DISCLOSURE
Disclosure in respect of Related Parties pursuant to Accounting
Standard 18
(A) List of Related Parties
(i) Holding Company
Hindalco Industries Limited
(ii) Fellow Subsidiaries Company
I Aditya Birla Minerals Limited
2 Al Dotcom Sdn. BHD
3 Albrasilis-AluminiodoBrasillndustriaeComerciaLtda
4 Alcom Nikkei Specialty Coatings Sdn Berhad
5 Aluminum Company of Malaysia Berhad
6 Aluminum Upstream Holdings LLC
7 Aluminium Norf GmbH
8 4260848 Canada Inc.
9 AV Metals Inc, Canada
10 AV Minerals BV, Netherland
II Birla Maroochydore Pty Limited
12 Birla Mt Gordon Pty Limited
13 Birla Nifty Pty Limited
14 Birla Resources Pty Limited
15 Consorcio Candonga (Unincorporated Joint venture)
16 Dahej Harbour and Infrastructure Limited
17 Deutsche Aluminium Verpackung Recycling GmbH(J-V)
18 East Coast Bauxite Mining Company Private Ltd.
19 Eurofoil, Inc.
20 France Aluminium Recyclage SA
21 Hindalco Do Brasillnd Com Alumina Ltda
22 Hindalco - Almex Aerospace Limited
23 Hindalco Guinea SARL
24 Lucknow Finance Company Limited
25 Logan Aluminium Inc.
26 4260856 Canada Inc
27 Mauda Energy limited
28 Minerals and Mnerals Limited
29 Novelis (Shanghai) Aluminum Trading Co, Ltd.
30 Novelis Acquisitions LLC
31 Novelis North America Holdings Inc.
32 Novelis (India) Infotech Ltd.
33 Novelis AG
34 Novelis Aluminium Beteiligungsgesellschaft mbH
35 Novelis Aluminium Holding Company
36 8018227 Canada Inc.
37 Novelis Brand LLC
38 8018243 Canada Limited
39 Novelis Corporation (Texas)
40 Novelis Cast House Technology Ltd
41 Novelis Deutschland GmbH
42 Novelis de Mexico SA de CV
43 Novelis Europe Holdings Limited
44 Novelis do Brasil Ltda
45 Novelis Inc.
46 Novelis Sheet Ingot GmbH
47 Novelis Korea Ltd.
48 Novelis Italia SpA
49 Novelis Delaware LLC.
50 Novelis Lamines France SAS
51 Novelis No. 1 Limited Partnership
52 Novelis Madeira, Unipessoal, Lda
53 Novelis PAE SAS
54 Novelis PAE Corporation
55 Novelis South America Holdings LLC
56 Novelis Services Limited
57 Novelis (China) Aluminum Products Co, Ltd.
58 Novelis Switzerland SA
59 Novelis UK Ltd.
60 Novelis MEA Ltd.
61 Novelis Vietnam Company Limited
62 Novelis Asia Holdings (Singapore) Pte. Ltd.
63 Renuka Investments & Finance Limited
64 Renukeshwar Investments & Finance Ltd.
65 Suvas Holdings Limited
66 Tubed Coal Mines Ltd.
67 Utkal Alumina International limited
68 Utkal Alumina Technical & General Services Limited
(iii) Key Managerial Personnel
Mr. K.C. Jhanwar, Managing Director from 1/3/2014
Mr. V.R Agrawal, Managing Director up to 28/2/2014
(iv) Significant Influence
Tanfac Industries Ltd.
* Paid to Renuka Investments & Finance Limited
Amounts in brackets represent corresponding amount of previous year.
There have been no write off/ write back in respect of the related
parties during the year
Related party relationship have been identified by the management and
relied upon by the auditors.
Related parties transaction represents cost of materials & services
bought/sold net of taxes, duty and discounts.
B.5 Power (electricity) purchase as well as sale (supply) to UPPCL,
UP, JSEB, Jharkhand and HESCOM, Karnataka has been accounted for in the
accounts as sale/purchase of power..
B.6 In the opinion of the management, Current Assets, Loan and
Advances would realize, at least, at the value stated in the Balance
Sheet, in the normal course of business.
* Expenses towards gratuity and leave encashment provisions are
determined actuarially on an overall company basis at the end of each
year and accordingly have not been considered in the above information.
** In the determination of Manager''s remuneration, certain perquisites
have been valued in accordance with the Income Tax Rules, 1962.
The Computation of net profit under section 349 of the Companies Act,
1956 has not been given as no commission is payable to the Managing
Director and/or Whole Time Director(s) under Section 309 of the
Companies Act, 1956 ("the Act") and the remuneration has been paid to
the Managing Director in accordance with the provisions of clause (C)
of section II of part II of schedule XIII to the act.
B.7 Stores & Spares consumed includes replacement of Spare parts of
Plant & Machinery, as per consistent policy followed by the company.
B.8 Statutory dues include Rs.879.36 Lacs (Previous Year Rs. 697.40
Lacs) towards liability made under Entry Tax of Goods Act, 2007 (UP)
which is disputed.
Mar 31, 2013
BACKGROUND
Aditya Birla Chemicals Limited (''the Company'') is subsidiary company of
Hindalco Limited - a leading aluminium company of India having global
operations. The company is engaged in the business of chloro chemicals
having plant and registered office at Ghanshyam Kunj'' Garhwa Road''
Rehla'' Dist: Palamau'' Jharkhand.
In the financial year 2011-12'' the company acquired Chloro Chemical
Division and salt works of Kanoria Chemicals & Industires Lmited
situated respectively at Renukoot (Uttar Pradesh) and Jhangi (Gujarat)
(articulated as ''Renukoot Chemical Division'' or ''RCD'') with effect from
May 24'' 2011 (''the effecive date''). The assets'' liabilities'' revenue''
expenses and other details in the financial statements for the previous
year include numbers/details of RCD from the effective date. The
corresponding figures and details of previous year'' are therefore'' not
fully comparable with those for the year under report which include
items of RCD for full year.
A.1 Power (electricity) purchase as well as sale (supply) to UPPCL &
JSEB has been accounted for in the accounts as sale/ purchase of power.
A.2 In the opinion of the management'' Current Assets'' Loan and
Advances would realize'' at least'' at the value stated in the Balance
Sheet'' in the normal course of business.
** In the determination of Manager''s remuneration'' certain perquisites
have been valued in accordance with the Income Tax Rules'' 1962.
The Computation of net profit under section 349 of the Companies Act''
1956 has not been given as no commission is payable to the Managing
Director and/or Whole Time Director(s) under Section 309 of the
Companies Act'' 1956 ("the Act") and the remuneration has been paid to
the Managing Director in accordance with the provisions of clause (C)
of section II of part II of schedule XIII to the act.
A.3 Stores & Spares consumed includes replacement of Spare parts of
Plant & Machinery'' as per consistent policy followed by the company.
A.4 Statutory dues include provision of Rs. 697.40. Lacs (Previous
Year Rs. 510.26 Lacs) is made for liability towards Entry Tax of Goods
Act'' 2007 (UP) which is disputed
A.5 Figures of previous year have been regrouped/ rearranged wherever
necessary
Mar 31, 2012
A) BACKGROUND
Aditya Birla Chemicals Limited ('the Company') is subsidiary company of
Hindalco Limited - a leading aluminum company of India having global
operations. The company is engaged in the business of chloro chemicals
"having plant and registered office at Ghanshyam Kunj, Garhwa Road,
Rehla, Dist: Palamau, Jharkhand
During the year under report, the company acquired chloro chemical
division and salt works of Kanoria Chemicals & Industries Limited
situated respectively at Renukoot (Uttar Pradesh) and Jhangi (Gujarat)
(articulated as 'Renukoot Chemical Division' or 'RCD') with effect from
May 24, 2011 ('the effective date'). The assets, liabilities, revenue,
expenses and other details in the financial statements for the year
under report include numbers/details of RCD from the effective date.
The corresponding figures and details of previous year, are therefore,
not comparable with those for the year under report.
12,004,987 Equity Shares (Previous year 12,004,987) of the Company are
held by Hindalco Industries Limited, the holding Company 775,000 shares
(Previous year 775,000) are held by Renuka Investment & Finance Limited
(Subsidiary of Hindalco Industries Limited).
The Company has only one class of share referred as equity share having
a par value of Rs 10/-. Each holder of equity share is entitled to same
right in all respect.
*Grant received from Jharkhand State Government of Rs. 525.00 lacs
(Previous Year Rs.175.00 lacs) in the nature of Capital subsidy not
related to any specific assets credited to capital reserve during the
year.
(i) Security and Terms of Term loan from Banks amounting to Rs 67,968.75
Lacs (Previous Year Rs Nil)
(a) Nature of Securities
Secured by way of first charge to the Bank on all the movable plant and
machinery both present and future being movable properties, now stored
at or being stored installed at Rehla, Jharkhand and Renukoot , Uttar
Pradesh and second charge on all the stock in trade both present and
future and all the book debts, outstanding money receivables, claims
and bills due / to be due to the company.
(b) Term of Repayment
Repayable 32 (Previous year Nil) quarterly installment of Rs 2,343.75
lacs each from 31st August, 2012 along with interest of 11.5% p.a. (also
refer Note B.8.(i))
(ii) Security & Terms of Term loan from Banks amounting to Rs 260 Lacs
(Previous Year Rs 1,380 Lacs)
(a) Nature of Securities
Term loan way of first exclusive charge to the Bank all the stock in
trade both present and future consisting of raw materials, finished
goods, goods in process of manufacturing and all the book debts,
outstanding moneys receivable, claims and bills etc.& all the movable
plant and machinery both present and future stored at or at present
installed at Garhwa Road , Rehla, Distt: Palamau.
(b) Term of Repayment
Repayable 4 (Previous year 8) quarterly installment of Rs 280 lacs each
from 1st April and ended with last installment of Rs 260 lacs on
01.04.2013 alongwith interest of 8% p.a.(also refer Note B.8.(i))
(i) Rs 115.75 lacs Secured against pledge of Fixed Deposits of the
Company.
(ii) Rs 2411.79 lacs against exclusive first charge by way of
hypothecation on all stock in trade both present & future consisting of
raw materials, finished goods, goods in process and all book debts,
outstanding money receivables, claims & bills due / to be due to the
Company.
Trade Receivables include dues from Holding Company, Hindalco
Industries Limited, Rs 1,507.92 lacs (Previous year Rs 132.66 lacs)
maximum due at any time during the year Rs 1,966.12 lacs (Previous year
Rs 1,011.22 Lacs)
*With a view to optimise the benefits of specialization and minimize
cost to the Company, its share of expenses towards business operations
of Rs Nil (Previous year Rs 15.73 lacs) contributed to Aditya Birla Nuvo
Limited and Rs 44.64 Lacs (Previous year Rs 112.60 lacs) contributed to
Grasim Industries Limited the same has been accounted under 'Business
Head Office expenses in Notes B.30
Out of the Assets acquired of RCD (Refer note under title Background),
the Company has identified Lindane BHC plants (which have been shut
down for past few years) and Mercury Plant which are classified as
'assets held for disposal'. The resultant loss of Rs. 2273.98 Lacs
has been booked and classified as exceptional item during the year.
B.1 Segment information
The Company is primarily engaged in Chlor Alkali Chemicals. Since the
inherent nature of entire business activities is governed by the same
act of risk and returns, there is no reportable segment. Company does
not have reportable secondary segment.
B.2 CONTINGENT LIABILITIES & PROVISIONS
A) Contingent Liabilities not provided for in respect of the following:
a) Outstanding Bank Guarantees (Against which Rs.406 lacs has been
1,717.01 769.01 deposited as FDR with Banks, Previous year Rs. 465
lacs)
b) Claims/Disputed liabilities against the Company not acknowledged as
debt
i) a) Annual Minimum Guarantee Electricity charges & delayed payment
6,511.25 6,459.65 surcharge thereon against which Rs.100 lacs (previous
year Rs.100 lacs) has been deposited (The order of Consumer Grievance
Redressal Forum relating to Annual Minimum Guarantee case was
challenged by JSEB before Ranchi High Court. On hearing, the Ranchi
High Court directed JSEB to raise the bill in accordance with the
Forum's order subject to final adjudication of pending writ.
Complying with Forum's order, JSEB has raised bill which involved a
refund of Rs 17.80 Lacs to the Company. Since the writ is pending
before the Court, contingent liability of Rs.6511.25 lacs has been
disclosed in the accounts).
b ) Delayed payment of surcharge on the amount of fuel surcharge
arrears 482.12 480.63
ii) Amount claimed by the Kandla Port Trust not acknowledge by company,
382.60 Nil matter is pending before the Court.
iii) Income Tax
a) AY 1998-99, 2000-01, ITAT (Appeals) effect Pending with A.O. 13.15
13.15 (Against which Rs 9.32 lacs paid)
b) AY 2007-08 for which the Company has filed appeal with CIT (Appeals)
197.02 197.02 and Petition u/s 154 has been filed for considering
correct amount of TDS & Advance Tax
c) AY 2008-09 for which the Company has filed appeal with CIT (Appeals)
357.32 357.32 and Petition u/s 154 has been filed for considering
correct amount of TDS
d) Various other cases for which the Company has filed appeal with CIT
8.44 2.27 (Appeals)
iv) Liquidated damage and interest claimed by BSIDC not acknowledged by
143.18 129.16 the Company
v) Compensation payable against various labour cases pending with
various 156.00 156.00 Courts
vi) Land revenue and Maintenance charges payable to Ranchi Industrial
Area 10.50 10.50 Development Authority (RIADA), Ranchi Sales Tax
vii) AY 2003-04 for which the Company has filed writ no.1811/2007
before 10.86 Nil Allahabad High Court against Dy Commissioner(A),
Sonebhadra Order
(due to non submission of certificate of Trade tax check post at Nepal
Border Rs.1.63 lac was deposited)
viii) Excise
a) For the Period (2000-01 to 2006-07): Demand of Excise duty on
clearance 60.42 Nil of SBP to M/s UNICEF without payment of Excise duty
under Notification
No. 108/95 C.E. Case is pending before CESTAT, New Delhi
b) For the Period (June'03- March' 07): Case against demand raised for
533.46 Nil excise duty is pending before CESTAT, New Delhi
c) Various other cases pending before excise department, high Court &
14.76 Nil CESTAT
ix) Service tax
a) Demand of Service Tax for the period April' 05- June' 06. Cases
were 141.21 Nil pending before CESTAT, New Delhi.
b) Demand of penalty on service tax on banking and other financial
25.11 Nil services availed by company for issue of FCCB. Cases were
pending
before CESTAT, New Delhi.
There are no amount included in the fair value of Plan Assets for:
- Company's own financial instrument
- Property occupied by or other assets used by the company
Expected rate of return on assets is based on the average long term
rate of return (assumed rate on return) expected on investments of the
funds during the estimated term of the obligations.
There are no amount included in the fair value of Plan Assets for:
- Company's own financial instrument
- Property occupied by or other assets used by the company
Expected rate of return on assets is based on the average long term
rate of return expected on investments of the funds during the
estimated term of the obligations.
The estimates of future salary increases, considered in actuarial
valuation, take into account inflation, seniority, promotion and other
relevant factors.
In respect of Defined contribution schemes-
The company contributes 12% of salary for all eligible employees
towards Provident Fund managed by Approved Trust. The company also
contributes a 15% of salary for eligible employees as per scheme
towards Superannuation Funds managed by Approved Trusts.
The Company has recognized the following amount as an expense and
included in the Notes B.26 "Contribution to Provident Fund and other
Funds:
* (Mr. S.S.Gupta Rs.75.57 lac and Mr. V.R.Agrawal 21.05 lac)
**Paid to Renuka Investments & Finance Limited
S Amounts in brackets represent corresponding amount of previous year.
There have been no write off / write back in respect of the related
parties during the year. Related party relationship have been
identified by the management and relied upon by the auditors.
B.3 Power (electricity) purchase as well as sale (supply) to UPPCL &
JSEB has been accounted for in the accounts as sale/ purchase of power.
B.4 In the opinion of the management, Current Assets, Loan and
Advances would realize, at least, at the value stated in the Balance
Sheet, in the normal course of business.
* Expenses towards gratuity and leave encashment provisions are
determined actuarially on an overall company basis at the end of each
year and accordingly have not been considered in the above information.
** In the determination of Manager's remuneration, certain perquisites
have been valued in accordance with the Income Tax Rules, 1962.
The Computation of net profit under section 349 of the Companies Act,
1956 has not been given as no commission is payable to the Managing
Director and/or Whole Time Director(s) under Section 309 of the
Companies Act, 1956 ("the Act") and the remuneration has been paid to
the Managing Director in accordance with the provisions of clause (C)
of section II of part II of Schedule XIII to the Act.
B.5 Stores & Spares consumed includes replacement of Spare parts of
Plant & Machinery, as per consistent policy followed by the company.
B.6 Statutory dues include provision of Rs 510.26 lacs is made for
liability towards Entry Tax of Goods Act, 2007 (U.P) which is disputed.
B.7 Figures of previous year have been regrouped/ rearranged wherever
necessary
Mar 31, 2010
As at As at
March 31,2010 March 31,2009
(Rs in Lacs)
1. Estimated amount of contracts
remaining to be executed on
capital account and not provided
for (Net of Advances) 52.86 137.65
CONTINGENT LIABILITIES & PROVISIONS
A) Contingent Liabilities not provided
for in respect of the following:
Claims against the Company not
acknowledged as debts:
a) i. Annual Minimum Guarantee
Electricity charges & delayed
payment surcharge thereon against
which Rs.100 lacs (previous
year Rs.100 lacs) has been deposited:
refer note number 20 6408.05 6,356.46
ii. Delayed payment surcharge on the
amount of fuel surcharge arrears 479.13 651.80
b) Bank Guarantees outstanding
(Against which Rs.115.81 lacs has been
deposited as FDR with Banks, Previous
year Rs.207.00 lacs) 270.01 270.33
c) Income Tax
i. AY 1998-99,2000-01, IT AT
(Appeals) effect Pending with A.O.
(Against which Rs.9.32 lacs paid) 13.15 13.15
ii. AY 2004-05 partial relief granted
by CIT (Appeals) effect of which
was pending with A.O. & for rest company
has filed appeal with
IT AT. IT AT Order has been received
and the effect of ITAT
order has been given by AO resulting
in Nil demand Nil 0.76
iii. AY 2005-06 for which the Company
had filed appeal with CIT (Appeals). CIT
(Appeals) order partly allowed certain expenses
disallowed earlier against which appeal
before ITAT has been filed 19.80 42.20
iv. AY 2002-03 for which the Company
has filed appeal with CIT (Appeals) 2.7 2.27
v. AY 2007-08 for which the Company has
filed appeal with CIT (Appeals) and
Petition u/s 154 has been filed for
considering correct amount of TDS
& Advance Tax 197.02 Nil
d) Liquidated damage and interest
claimed by BSIDC not acknowledged
by the Company 115.14 30.40
e) Compensation payable against
various labour cases pending
with various courts 156.00 156.00
f) Land revenue and Maintenance
charges payable to Ranchi Industrial
Area Development Authority (RIADA),
Ranchi 10.50 10.50
2. Liabilities no longer required written back includes Rsl282.61 lacs,
earlier provided, towards fuel surcharge for financial year 2002-03.
The same has been written back based on the decision of Supreme Court
in the case of Bihar State Electricity Board v/s Pulak Enterprises
Limited, interpretation whereof is supported by legal opinion obtained
by the Company.
There are no amount included in the fair value of Plan Assets for:
à Companys own financial instrument
à Property occupied by or other assets used by the company
Expected rate of return on assets is based on the average long term
rate of return expected on investments of the funds during the
estimated term of the obligations.
3. The Company is primarily engaged in Chlor Alkali Chemicals. Since
the inherent nature of entire business activities is governed by the
same act of risk and returns, there is no reportable segment. Company
does not have reportable secondary segment.
4. RELATED PARTY DISCLOSURE :
Disclosure in respect of Related Parties pursuant to Accounting
Standard 18
A. List of Related Parties
(i) Holding Company
Hindalco Industries Ltd.
(ii) Fellow Subsidiaries Company
1 Aditya Birla Minerals Limited
2 Al Dotcom Sdn. BHD.
3 Albrasilis-Aluminio do Brasil Industria e Comercia Ltda
4 Alcorn Nikkei Specialty Coatings Sdn Berhad
5 Aluminum Company of Malaysia Berhad
6 Aluminum Upstream Holdings LLC
7 AV Aluminium Inc, Canada
8 AV Metals Inc, Canada
9 AV Minerals BV, Netherland
10 Birla Maroochydore Pty Limited
11 Birla Mt Gordon Pty Limited
12 Birla Nifty Pry Limited
13 Birla Resources Pty Limited
14 Dahej Harbour and Infrastructure Limited
15 East Coast Bauxite Mining Company Private Limited
16 Eurofoil, Inc.
17 Evermore Recycling LLC
18 HAAL(USA)Inc
19 Hindalco - Almex Aerospace Limited
20 Indal Exports Limited
21 Logan Aluminium Inc.
22 Lucknow Finance Company Limited
23 Mauda Energy Limited
24 Minerals and Minerals Limited
25 Novelis (India) Infotech Ltd.
26 Novelis AG
27 Novelis Aluminium Beteiligungsgesellschaft mbH
28 Novelis Aluminium Holding Company
29 Novelis Belgique SA
30 Novelis Benelux NV
31 Novelis Brand LLC
32 Novelis Cast House Technology Ltd
33 Novelis Corporation (Texas)
34 Novelis de Mexico SA de CV
35 Novelis Deutschland GmbH
36 Novelis do Brasil Ltda
37 Novelis Europe Holdings Limited
38 Novelis Foil France SAS
39 Novelis Inc.
40 Novelis Italia SpA
41 Novelis Korea Ltd.
42 Novelis Lamines France SAS
43 Novelis Luxembourg SA
44 Novelis Madeira, Unipessoal, Lda
45 Novelis No. 1 Limited Partnership
46 Novelis PAE Corporation
47 Novelis PAE SAS
48 Novelis Services Limited
49 Novelis South America Holdings LLC
50 Novelis Switzerland SA
51 Novelis Technology AG
52 Novelis UK Ltd.
53 Renuka Investments & Finance Limited
54 Renukeshwar Investments & Finance Ltd.
55 Suvas Holdings Limited
56 Tubed Coal Mines Ltd
57 Utkal Alumina International Limited
58 4260848 Canada Inc.
59 4260856 Canada Inc.
(iii) Key Managerial Personnel
Mr. S. S. Gupta
5. Power (electricity) purchases as well as sale (supply) to JSEB has
been accounted for in the accounts as sale/ purchase of power.
6. Realisation from generation of Power (Captive consumption) & cost
of power Generation is charged to Profit & Loss Account in respective
Division viz Power Plant Division and Caustic Division.
7. In the opinion of the management, Current Assets, Loan and
Advances would realize, at least, at the value stated in the Balance
Sheet, in the normal course of business.
8. Sundry Debtors include dues from Holding Company, Hindalco
Industries Limited, Rs647.33 lacs (Previous year Rs596.73 lacs).
9. With a view to optimise the benefits of specialisation and
minimise cost to the Company, its share of expenses towards business
operations of Rsl30.80 Lacs contributed to Aditya Birla Nuvo Limited
and the same has been accounted under Business Head Office expenses in
Schedule 19.
10. Stores & Spares consumed includes replacement of Spare parts of
Plant & Machinery, as per consistent policy followed by the company.
11. The order of Consumer Grievance Redressal Forum relating to Annual
Minimum Guarantee case was challenged by JSEB before Ranchi High Court.
On hearing, the Ranchi High Court directed JSEB to raise the bill in
accordance with the Forums order subject to final adjudication of
pending writ. Complying with Forums order, JSEB has raised bill which
involved a refund of Rs.17.8u Lacs to the Company. Since the writ is
pending before the Court, contingent liability of Rs.64.08 crores has
been disclosed in the accounts.
12. The Donation includes Rs20 Lac to "General Electoral Trust" for
distribution to political parties/ persons
13. Other additional information as required under paras 3,4C and 4D
of Part II of Schedule VI to the Act:
14. Information pursuant to part IV of schedule VI of the Companies
Act, 1956, is annexed herewith.
15. Figures of previous year have been regrouped/ rearranged wherever
necessary.