Home  »  Company  »  AksharChem (India)  »  Quotes  »  Notes to Account
Enter the first few characters of Company and click 'Go'

Notes to Accounts of AksharChem (India) Ltd.

Mar 31, 2015

1. Previous year figures have been regrouped wherever necessary, to confirm to this year's classification.

2. The cash flow statement has been prepared under the 'Indirect Method' set out in Accounting Standard 3 'Cash Flow Statement' issued by Institute of Chartered Accountants of India.

3. The figures of current year are not comparable with the previous years figures, pursuant to the Scheme of Arrangement sanctioned by the Hon'ble High Court of Gujarat in the nature of demerger and transfer of CPC Green Division of Asahi Songwon Colors Limited to the Company on the appointed date i.e. April 01,2014. All the Assets and liabilities are transferred the Company on that date. (Refer Note-42).

4. Corporate Information

The Company is a Public Limited Company incorporated under the Companies Act, 1956. The Company is currently engaged in the business of manufacturing, marketing, trading and export of Dyes Intermediates and Pigments.The company's equity shares are listed at BSE Limited and Ahmedabad Stock Exchange Limited.

5. Terms / rights attached to Equity Shares

The Company has issued only one class of equity shares having a par value of Rs.10 each. Each holder of Equity Shares are entitled to one vote per share. The Company declares and pay dividend in Indian rupees. The dividend proposed by the Board of Directors is subject to the approval of the shareholders at the Annual General Meeting, except in case of interim dividend. In the event of liquidation of the Company, the holders of equity shares will be entitled to receive the realised value of the assets of the Company, remaining after the payment of all preferential dues. The distribution will be in proportion to the number of equity shares held by the shareholders.

6. Aggregate number and class of shares allotted as fully paid up pursuant to contracts without payment being received in cash:

2,360,050 Equity Shares of Rs.10 each have been issued to Shareholders of Asahi Songwon Colors Limited in terms of Scheme of Arrangement in the nature of demerger and transfer of CPC Green Division of Asahi Songwon Colors Limited into the Company sanctioned by the Hon'ble High Court of Gujarat at Ahmedabad vide order dated 17.10.2014.

7. Aggregate number and class of shares allotted as fully paid up by way of Bonus shares : NIL

8. Aggregate number and class of shares bought back: NIL

a. Secured loans are covered by:

Term Loans from State Bank of India (SBI) are secured by Equitable Mortgage of Land and Buildings and a first charge by way of hypothecation of the whole of the movable properties of the company including its movable plant & machinery, stores, tools & accessories, present & future and other movables save & except book debts & current assets.

b. Vehicle loans are secured by hypothecation of concerned vehicles.

Repayment terms of Vehicle Loan

Vehicle loans are repayable in equal monthly installment over the terms of loan ranging from 1 to 3 years. There was no default in repayment of loan or interest.

9. CONTINGENT LIABILITIES & COMMITMENTS

(Amount in Rupees)

Particulars 31/03/2015 31/03/2014

1 Income Tax: order U/s 154 Passed by ACIT Circle -1 Ahmedabad for Asst Year. 669,293 669,293

2001-02.

2 Sales Tax: Appellate order passed by Dy. Commissioner of Commercial Taxes, 1,803,341 1,803,341

Appeals-3 at Gandhinagar for the year 2004-05, and Subsequently applied for

Appeal at Commercial tax Commissioner Ahmedabad. (VAT Tribunal).

3 The Commissioner of Income Tax -1Ahmedabad has filed an appeal in the High 4,427,236 4,427,236

Court of Gujarat, Ahmedabad for the Asst. Year 2003-04

4 The Commissioner of Income Tax -1 Ahmedabad has filed an appeal for the 293,669 293,669

Asst. Year 2004-05

5 Income Tax: order U/s 263 Passed by ITO (Tech-I) Pr. Commissioner of Income 261,960 -

tax-1 Ahmedabad for Asst Year. 2010-11 has filed an appeal to the Appellate Tribunal

6 Estimated amount of Contracts / purchase orders remaining to be executed 43,234,100 -

and not provided for Capital goods.

7 Bills discounted against Letter of Credit but not realized and credited to the 68,002,255 - parties accounts

10. sundry debtors, sundry creditors and loans and advances

The Company has received balance confirmations from major parties and for few exceptions, the management is in the opinion that the current assets, loans and advances have a value on realization in ordinary course of business at least equal to the amount at which they are stated.

11. SEGMENT REPORTING

The Company has two reportable primary segments "Dyes and Intermediate" and "Pigments" for the year ended 31.03.2015 (Previous year up to 31/03/2014 had one segment "Dyes and Intermediates" as they do not include figures of CPC Green Division, which has been since demerged into the Company from Asahi Songwon Colors Limited with appointed date April 01,2014) as per Accounting Standard-17. (Refer Note-42)

12. RELATED PARTY DISCLOSURES

Pursuant to the Accounting Standard on "Related Party Disclosure" (AS 18) notified by Companies (Accounting Standards) Rules, 2006, the following persons will be considered as related persons for the period ended on March 31,2015.

1 Related Parties and Nature of Relationship

a) The Enterprises in which Key Managerial Personnel (KMP) and their relatives have significant influence:

Asahi Songwon Colors Ltd.

Skyjet Aviation Pvt. Ltd.

Skyways

Asahi Energy Pvt. Ltd.

Asahi Powertech Pvt. Ltd.

Flyover Communication Pvt. Ltd.

Akshar Silica Pvt. Ltd.

b) Key Managerial Personnel:

Mrs. Paru M. Jaykrishna

Mr. Gokul M. Jaykrishna

Mr. Munjal M. Jaykrishna

c) Relative of Key Managerial Personnel

Mr. Mrugesh Jaykrishna

13. ACCOUNTING FOR TAX ON INCOME

Provision for current tax is made under normal computation. Provision of Income Tax has been made in the accounts taking into consideration various concessions available and depreciation under the Income Tax Act 1961. MAT Credit entitlement has been treated as advance payment of Tax.

14. IMPAIRMENT OF ASSETS

No material impairment of Assets has been identified by the Company and as such no provision is required as per Accounting Standard 28 issued by The Institute of Chartered Accountants of India.

15. The Prior Period Adjustments of Rs.11,565,000/- shown in Statement of Profit and Loss represents the recovery of excess payment of Remuneration paid to the Managing Directors of the Company during the Financial Year 2013-2014.

16. The extraordinary Item shown in the Statement of Profit and Loss represents unrealised export incentives written off for Rs. Nil (Previous year Rs. 15,979,288/-)

17. Consequant to the Approval of the Scheme of Arrangement ("Scheme") under section 391 to 394 and other applicable provisions of the Companies Act, 1956 between AksharChem (India) Limited ("the Company"), Asahi Songwon Colors Limited ("ASCL") and their respective shareholders and creditors, CPC Green division of Asahi Songwon Colors Limited ("demerged Undertaking), including all assets and liabilities thereof, (i.e. business and interests in manufacture of CPC Green Division) as sanctioned by Hon'ble High Court of Gujarat vide its Certified order dated November 29, 2014, and thereunder filed with the Registrar of Companies on December 2, 2014, has been transferred by way of demerger to the Company at their respective book values on a going concern basis with effect from the appointed date of the Scheme, i.e. April 1,2014. Accordingly, these financial statements includes the figures of the said CPC Green Division of ASCL ("demerged undertaking") for the period from 01.04.2014 to 31.03.2015.

18. Upon the scheme being effective the Authorised Share Capital of Asahi Songwon Colors Limited amounting to Rs. 35,000,000/-has been transferred to the Company and accordingly the Authorised Share Capital of the Company is increased to the said extent as on the effective date without any further act or deed.

19. The transaction pertaining to the CPC Green Division ASCL from the appointed date up to the effective date of the Scheme of Arrangement has been deemed to be made by the Company.

20. The employees of demerged undertaking have been transferred to the Company on their existing terms of employment with ASCL.

21. All contingent liabilities relating to demerged undertaking has been transfereed to the Company on the appointed date.

22. All loans, advances and other facilities sanctioned to the ASCL in relation to the CPC Green Division by State Bank of India prior to the Appointed Date, which are partly drawn or utilized is transferred to the Company. Further, such loans, advance and other facilities utilized either partly or fully by the ASCL from the appointed date till the effective date of the CPC Green Division (within the overall limits sanctioned by State Bank of India) is on the effective date treated as loans, advances and other facilities made available by the Company without any further act or deed.

23. Figures for the period prior to the appointed date i.e. April 1,2014 are not comparable since they do not include figures of CPC Green division which has been since demerged into the company from Asahi Songwon Colors Limited as per the Scheme of Arrangement approved by the Hon'ble High Court of Gujarat.

24. Earning per Share (EPS) for the period ended 31/3/2015 has been calculated in accordance with Accounting Standard 20 after considering the effect of shares issued to the shareholders of Asahi Songwon Colors Limited pursuant to the Scheme of Arrangement in the nature of demerger and transfer of CPC Green division of Asahi Songwon Colors Limited. Since the scheme of demerger is with effect from appointed date i.e. April 01, 2014, consequently the figures in respect of EPS for current period are not comparable with figures for the period prior to the appointed date.

25. Previous year's figures have been regrouped / reclassified, wherever necessary to make them comparable with the figures of the current year financial statements.


Mar 31, 2014

1. Terms / rights attached to Equity Shares

The company has issued only one class of equity shares having a par value of Rs. 10 per share. Each holder of Equity Shares are entitled to one vote per share. The company declares and pay dividend in Indian rupees. The dividend proposed by the Board of Directors is subject to the approval of the shareholders at the Annual General Meeting, except in case of interim dividend. In the event of liquidation of the company, the holders of equity shares will be entitled to receive the realised value of the assets of the company, remaining after the payment of all preferential dues. The distribution will be in proportion to the number of equity shares held by the shareholders.

2. I. Aggregate number and class of shares allotted as fully paid up pursuant to contracts without payment being received in cash: NIL

II. Aggregate number and class of shares allotted as fully paid up by way of Bonus Shares : NIL

III. Aggregate number and class of shares bought back: NIL

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

4. CONTINGENT LIABILITIES & COMMITMENTS NOT PROVIDED FOR

(Amount in Rupees)

31/03/2014 31/03/2013

1. Income Tax: order U/s 154 passed 669,293 669,293 by ACIT Circle -1 Ahmedabad for Asst Year. 2001-02. 2. Sales Tax: Appellate order passed 1,803,341 1,803,341 by Dy. commissioner of commercial Taxes, Appeals-3 at Gandhinagar for the year 2004-05, and Subsequently applied for Appeal at commercial tax commissioner Ahmedabad. (VAT Tri- bunal).

3. The commissioner of Income Tax -1 4,427,236 4,427,236 Ahmedabad has filed an appeal in the High court of Gujarat, Ahmedabad for the Asst. Year 2003-04

4. The commissioner of Income Tax -1 Ahmedabad has filed an appeal for the 293,669 293,669 Asst. Year 2004-05

5. Estimated value of contracts - - remaining to be executed on capital account & not provided for

6. Bills discounted against Letter of - 5,636,505 credit but not realized and credited to the parties accounts

5. SUNDRY DEBTORS, SUNDRY CREDITORS AND LOANS AND ADVANCES

The company has received balance confirmations from major parties and for few exceptions, the management is in the opinion that the current assets, loans and advances have a value on realization in ordinary course of business at least equal to the amount at which they are stated.

6. SEGMENT REPORTING

The company has only one identified reportable business segment namely "Dyes & Intermediates" and does not fall under secondary segment for the purpose of Accounting Standard on "Segment Reporting" (AS 17) notified by companies (Accounting Standards) Rules, 2006.

7. The extraordinary item shown in the Statement of profit and Loss represents unrealised export incentives written off for Rs. 15,979,288/- (previous year - Nil)

8. ACCOUNTING FOR TAX ON INCOME

Provision for current tax is made under normal computation. Provision of Income Tax has been made in the accounts taking into consideration various concessions available and depreciation under the Income Tax Act 1961. MAT credit entitlement has been treated as advance payment of Tax.

9. IMPAIRMENT OF ASSETS

No material impairment of Assets has been identified by the company and as such no provision is required as per Accounting Standard 28 issued by The Institute of chartered Accountants of India.

10. Previous year''s figures have been regrouped / reclassified, wherever necessary to make them comparable with the figures of the current year financial statements.


Mar 31, 2013

1. SUNDRY DEBTORS, SUNDRY CREDITORS AND LOANS AND ADVANCES

The Company has received balance confirmations from major parties and for few exceptions, the management is in the opinion that the current assets, loans and advances have a value on realization in ordinary course of business at least equal to the amount at which they are stated.

2. SEGMENT REPORTING

The Company has only one identified reportable business segment namely "Dyes & Intermediates" and does not fall under secondary segment for the purpose of Accounting Standard on "Segment Reporting" (AS 17) notified by Companies (Accounting Standards) Rules, 2006.

3. ACCOUNTING FOR TAX ON INCOME

Provision for current tax is made under normal computation. Provision of Income Tax has been made in the accounts taking into consideration various concessions available and depreciation under the Income Tax Act 1961. MAT Credit entitlement has been treated as advance payment of Tax.

4. IMPAIRMENT OF ASSETS

No material impairment of Assets has been identified by the Company and as such no provision is required as per Accounting Standard 28 issued by The Institute of Chartered Accountants of India.

5. Previous year''s figures have been regrouped / reclassified, wherever necessary to make them comparable with the figures of the current year financial statements.


Mar 31, 2012

A. Terms / rights attached to Equity Shares

The Company has issued only one class of equity shares having a par value of Rs. 10 per share. Each holder of Equity Shares are entitled to one vote per share. The Company declares dividend in Indian rupees. The dividend proposed by the Board of Directors is subject to the approval of the shareholders at the Annual General Meeting, except in case of interim dividend. In the event of liquidation of the Company, the holders of equity shares will be entitled to receive the realised value of the assets of the Company, remaining after the payment of all preferential dues. The distribution will be in proportion to the number of equity shares held by the shareholders.

b. 1. Aggregate number and class of shares allotted as fully paid up pursuant to contracts without payment being received in cash: Nil

2. Aggregate number and class of shares allotted as fully paid up by way of Bonus Shares : Nil

3. Aggregate number and class of shares bought back: Nil

a. Secured loans are covered by:

1. Term Loan from State Bank of India is secured by Equitable mortgage of Land and Buildings and a first charge by way of hypothecation of the whole of the movable properties of the company including its movable plant & machinery, stores, tools & accessories, present & future and other movables save

& except book debts & current assets and further secured by personal guarantee of three Directors of the Company.

b. Repayment terms of outstanding long term borrrowings as on March 31, 2012:

1. There was no default in repayment of loan or interest.

2. Repayment terms of secured term loan:

Amount payable within 12 Months Rs. 5,013,105/- (Previous.Year. Rs. 12,000,000/-). Current year term loan outstanding is repayable by 4 monthly installments of Rs. 1,000,000/- and last installment for balance amount.

* Secured loans are secured by hypothecation of raw materials, finished goods, stock in process and book debts, and furher secured by first charge over the fixed assets of the company and personal guarantee of three Directors of the Company.

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

3 The Revised Schedule VI as notified under the Companies Act, 1956 has become applicable to the Company effective from April 1, 2011 for the presentation made in the financial statements. The adoption of the revised Schedule VI requirements has significantly modified the presentation and disclosures which have been complied with in these financial statements. Previous year figures have been reclassified in accordance with current year requirements.

4 Contingent Liabilities

(Amount in Rupees) 31/03/2012 31/03/2011

1. Income Tax: order U/s 250 Dated 30/12/2010 Passed 669,293 2,680,821 by CIT (A)-VI Ahmedabad for Asst Year. 2001-02.

2. Sales Tax : Assessment order passed by Sales tax officer Kadi - 110,145 for the year 1997-1998 for which Appeal filed with Assistant

Commissioner of Sales Tax Mehsana GST and CST Respectively.

3. Sales Tax: Appellate order passed by Dy. Commissioner of 1,803,341 1,803,341 Commercial Taxes, Appeals-3 at Gandhinagar for the year

2004-05, and Subsequently applied for Appeal at Commercial tax Commissioner Ahmedabad. (VAT Tribunal).

4. The Commissioner of Income Tax -1 Ahmedabad has filed an 4,427,236 4,427,236 appeal in the High Court of Gujarat, Ahmedabad for the Asst.

Year 2003-04.

5. Income Tax: order U/s 143(3) Dated 09/09/2011 Passed by 293,669 - DCIT Circle -1 Ahmedabad for Asst Year. 2004-05.

6. Estimated amount of contracts remaining to be executed - 12,287,645 on capital account & not provided for.

7. Bills discounted against Letter of Credit but not realized and 12,411,154 4,389,172 credited to the parties accounts.

8. Guarantees Issued by the banks on behalf of the Company. 837,105 837,105

9. Central Excise: - Applied for appeal at Commissioner of 462,642 462,642 Central Excise. Ahmedabad-III on December 2009 dispute against availed the cenvat credit.

5 Sundry Debtors, Sundry Creditors and Loans and Advances

The Company has received balance confirmations from major parties and for few exceptions, the management is in the opinion that the current assets, loans and advances have a value on realization in ordinary course of business at least equal to the amount at which they are stated.

6 Segment Reporting

The Company has only one identified reportable business segment namely "Dyes & Intermediates" and does not fall under secondary segment for the purpose of Accounting Standard on "Segment Reporting" (AS 17) notified by Companies (Accounting Standards) Rules, 2006.

7 Related Party Disclosures

Pursuant to the Accounting Standard on "Related Party Disclosure" (AS 18) notified by Companies (Accounting Standards) Rules, 2006, the following persons will be considered as related persons for the year ended on March 31, 2012.

8 Accounting for Tax on Income

Provision for current tax is made under normal computation. Provision of Income Tax has been made in the accounts taking into consideration various concessions available and depreciation under the Income Tax Act 1961. MAT Credit entitlement has been treated as advance payment of Tax.

9 Impairment of Assets

There are no indications which reflects that any of the assets of the Company has got impaired from its potential use and therefore no impairment loss was required to be accounted in the current year as per Accounting Standard on "Impairment of Assets" (AS 28) notified by the Companies (Accounting Standards) Rules, 2006.

10 Previous year's figures have been regrouped / reclassified, wherever necessary to make them comparable with the figures of the current year financial statements.


Mar 31, 2010

1. Contingent Liabilities

As at As at

31/03/10 31/03/09

Rs. Rs.

a. Income Tax: Assessment order passed by Income-Tax office of Ward 1(1) Ahmedabad for A.Y. 2001-02 for which Filed an Appeal with Appellate Tribunal. 1,129,189 1,129,189

b. Sales Tax : Assessment order passed by Sales tax officer Kadi for the year 1997-1998 for which Appeal filed with Assistant Commissioner of Sales Tax Mehsana GST and CST Respectively. 110,145 110,145

c. Sales Tax: Appellate order passed by Dy. Commissioner of Commercial Taxes, Appeals-3 at Gandhinagar for the year 2004-05,. and Subsequently applied for Appeal at Commercial tax Commissioner Ahmedabad. (VAT Tribunal). 1,803,341 1,803,341

d. Income Tax : Assessment order passed by Income-Tax office of Ward 1(1) Ahmedabad for A.Y. 2003-04 for which CIT Appeal Filed on April 2006. 4,427,234 4,427,234

e. Estimated amount of contracts remaining to be executed on capital account & not provided for. 1,135,000 NIL

f. Bills discounted against Letter of Credit but not realized and credited to the parties accounts. 38,949,691 24,865,323

g. Guarantees Issued . by the banks on behalf of the Company. 837,105 NIL

h Central Excise: - Applied for appeal at Commissioner of Central Excise. Ahmedabad-III on December 2009 dispute against availed the cenvat credit. 462,642 NIL



2. Sundry Debtors, Sundry Creditors and Loans and Advances

a. The Company has received balance confirmations from major parties and for few exceptions, the management is in the opinion that the current assets, loans and advances have a value on realization in ordinary course of business at least equal to the amount at which they are stated.

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

3. Segment Reporting

The Company is mainly engaged in manufacturing of "Dyes & Intermediates" which is considered the Primary reportable business segment as per AS-17 "Segment Reporting" issued by Institute of Chartered Accountants of India.

4. Related Party Disclosures

1. Related Parties and Nature of Relationship

a) The Parties over which significant influence is exercised

Names Relationship

Asahi Songwon Colors Ltd. One or more directors are director

Skyjet Aviation Pvt Ltd One or more directors are director

Skyways One or more directors are trustees

Third Screen Solution Pvt Ltd One or more directors are director

Grey Cell Solution Pvt Ltd One or more directors are director

Flyover Communication Pvt Ltd One or more directors are director



b) Key Management Personal and their Relatives:

Names Relationship

Mrs. Paru M. Jaykrishna Chairperson and Managing Director

Mr. Gokul M. Jaykrishna Executive Director

Mr. Munjal M. Jaykrishna Joint Managing Director Mr. Mrugesh Jaykrishna Spouse of the Chairperson and Managing

Director and Father of Executive Director and Joint Managing Director.

 
Subscribe now to get personal finance updates in your inbox!