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Notes to Accounts of Alchemist Ltd.

Mar 31, 2015

Term Loans From Bank:

Punjab National Bank: Secured Loan of Rs.12,37,50,224/- (Rupees Twelve Crore Thirty Seven Lac Fifty Thousand Twc Hundred Twenty Four Only) (Previous Year Rs. 15,12,51,224/- (Rupees Fifteen Crore Twelve Lac Fifty One Thousand Two Hundred Twenty Four Only) secured through exclusive Charge on Fixed Assets Block, situated at F-5, Kishangarh Rajiv Gandhi I.T Park, Chandigarh. Due within one year is Rs. 3.50 Crore (Rupees Three Crore Fifty Lac Only ) (Previous Year Rs. 3.00 Crore (Rupees Three Crore Only).The loan has been guaranteed by Mr. Kanwar Deep Singh in the capacity of the director till 31st August,2012 and thereafter being the promoter of the company.

Term Loan carries interest @ base rate 4% and is repayable in 84 monthly installment of Rs. 25,00,000/- (Rupees Twenty Five Lac Only) each, commencing from 30th April, 2013.

Vehicle Loans from Bank:

Vehicle Loans of Rs. 53,65,663/- (Rupees Fifty Three Lac Sixty Five Thousand Six Hundred Sixty Three Only) (Previous Year Rs. 95,99,202/- (Rupees Ninety Five Lac Ninety Nine Thousand Two Hundred Two Only) are Secured agains' hypothecation of vehicles. Due within one year is Rs. 34,12,789/- (Rupees Thirty Four Lac Twelve Thousand Sever Hundred Eighty Nine Only) (Previous year Rs. 44,12,985/- (Rupees Forty Four Lac Twelve Thousand Nine Hundred Eighty Five Only). Vehicle Loans have been procured from various banks with rates of interest varying from 9% to 12% with repayment term of 3 to 5 Years.

Inter Corporate Loan:

Inter Corporate loan has been received from KDS Corporation Pvt Limited (a promoter group Company) and Technology Park Limited (a party covered under section 189 of the Companies Act. 2013) amounting to Rs. 4.37 Crores and Rs. 683.10 Crores. The Terms of repayment with respect to loan from kDs Corporation Private Limited have not been defined and is repayable on the mutual agreement of both the parties involved, hence terms are not prejudicial to the interest of the company. Loan from Technology Park Limited is repayable on service of a minimum notice of 12 months by the lender foi a repayment in excess of Rs. 50.00 Crores, however upon the concurrence of the Company, hence terms are not prejudicia to the interest of the Company. The Inter Corporate Loans obtained by the Company are non interest bearing.

-Bank of India:

Working Capital facility of Rs. 3,31,97,767/- (Rupees Three Crore Thirty One Lac Ninety Seven Thousand Seven Hundred Sixty Seven Only) (Previous Year Rs. 1,87,31,359/- (Rupees One Crore Eighty Seven Lac Thirty One Thousand Three Hundred Fifty Nine Only) secured against hypothecation of stocks and book debt of the company's unit located at Chambaghat, Solan (H.P). It is further collaterally secured by Land and Building, other structures (erected or to be erected) and other immovable properties of the Unit situated at Chambaghat, Solan. The loan has been guaranteed by Mr. Kanwar Deep Singh in the capacity of the director till 31st August,2012 and thereafter being the promoter of the company.

2. In the opinion of the management the current assets, loans and advances are of the value stated, if realised in the ordinary course of business. Out of the total amount of Loan and Advances a Sum of Rs. 4.60 Crores stands outstanding from Medisphare Marketing Limited. The company has initiated a legal action in the Kolkata High Court for recovery of the same.

3. The Company had entered into a scheme of arrangement under section 391-394 of the Companies Act, 1956 with Alchemist Foods Limited, a wholly owned subsidary which had been approved by the Hon'ble High Court of Delhi and High Court of Punjab and Haryana at Chandigarh vide its order dated 1st November, 2010 & 2nd December, 2010 respectively. The same had been registered with the Office of Registrar of Companies at Delhi and Chandigarh dated 2nd December, 2010 & 23rd December, 2010. Hence, appointed date for the implementation of the scheme was 23rd December, 2010 with effect from 1st April 2008, being the effective date. The scheme of arrangement was duly implemented in the financial year 2010-11.

- As per the scheme, food division of Alchemist limited had been demerged from the Company and transferred to and vested in Alchemist Foods Limited. All the properties, rights and power, assets, both movable and immoveable, liabilities including contingent liabilities and reserves, all income and expenses of the Food Division have without further act or deed been transferred to and vested with Alchemist Foods Limited at their book values, as a going concern with effect from the appointed date i.e. 1st April, 2008. In consideration, thereof, Alchemist Foods Limited had issued 1,00,00,000 Equity Shares of Rs. 10/- each at a premium of Rs. 90/- per shares to Alchemist Limited and an amount of Rs. 27.44 Crores was treated as unsecured loan from Alchemist Limited to Alchemist Foods Limited.

- As per the Scheme of arrangement, Authorized share capital of Alchemist Limited i.e. Rs. 121.25 Crores as on effective date i.e. 1st April, 2008 had been partly clubbed with Authorized Share Capital of the Transferee Company i.e. Alchemist Foods Limited. Accordingly, after implementation of scheme of arrangement, authorized share capital of Alchemist Limited had been reduced to Rs. 80.00 Crores consisting of 3.00 Crore equity shares of Rs. 10/- each aggregating to Rs. 30.00 Crores and 50.00 Lac redeemable preference shares of Rs. 100/- each aggregating to Rs.50.00 Crores.

4. Alchemist Limited has four subsidiaries namely Alchemist Foods Limited, Alchemist Infrastructures Private Limited, Alchemist Hospitality Group Limited and Alchemist Enterprises Pte Limited. The company had initiated steps to take over a company in Hong Kong as a subsidiary to further its international operations. However this process has not been completed pending approvals for remittances to be made towards capital.

In accordance with General Circular No. 2/2011 dated 8th February, 2011 issued by the Ministry of Corporate Affairs, Government of India, the Balance Sheet, Statement of Profit and Loss and other documents of subsidiary companies are not being attached with the Financial Statement of the Company.

5. Related Party Disclosures:

In accordance with the Accounting Standard (AS-18) on related party disclosure where controls exists and where transaction have taken place and description of the relationship as identified and certified by management are as follows:

Key Managerial Personnel

- Maj. Gen. (Retd.) Anil Oberoi

- Mr. Pavan Kumar Verma Subsidiary:

- Alchemist Foods Limited

- Alchemist Infrastructures Private Limited

- Alchemist Hospitality Group Limited

- Alchemist Enterprise Pte Limited, Singapore

Associates:

- Alchemist Hospitals Limited

- Alchemist Airways Private Limited

- Alchemist Realty Limited

- Black Cat Protection Services Private Limited

- KDS Corporation Private Limited

- A 1 News Network Private Limited

- Alchemist Media Limited

- Dooteriah & Kalej Valley Tea Estate Private Limited

- Alchemist Medisphere Limited

- Technology Parks Limited

- Anant Media Private Limited

- Alchemist Lifescienses Limited

- Alchemist Aviation Private Limited

- Alchemist F&B Limited

- Alchemist Touchnology Limited

- Eco Breaking Technologies India Private Limited

- Jass Developers Private Limited

- Kandaghat Spa & Health Resorts Private Limited

- Alchemist Hotel & Resorts Limited

- Alchemist Universe of Education Limited

- Optimum Constructions & Developers Private Limited

6. As per Accounting Standard - 28 "Impairment of Assets", the company has assessed the conditions of all the assets used in its operation and is of the opinion that there is no impairment of assets, hence no provision was made.

7. Finished Goods Stock of Steel Division for year 2015 has been carried over including excise duty.

8. Common Expenses relating to Head Office and other administrative office have been allocated to various divisions on the following basis.

i) Financial Cost - Fixed & Current Assets Employed

ii) Other Expenses - Sales/Reasonable Estimations

9. During the year 9,300 (Previous year 12,80,380) preference shares were redeemed and as per provisions of the Companies Act, 1956 a sum of Rs. 9,30,000/- (Previous Year Rs. 11,72,99,157/-) has been transferred to Capital Redemption Reserve out of Profit & Loss A/c and Rs. Nil (Previous Year and Rs. 1,07,38,843/-) has been transferred from General Reserve. Further a sum of Rs. Nil (Previous Year Rs. 11,82,60,731/-) has been transferred from Share Premium Account and a Sum of Rs. 87,53,875/- (Previous Year Rs. 19,19,73,292/-) has been transferred from Statement of Profit & Loss A/c to Preference Shares redemption reserve on account of premium amount of preference shares redeemed.

10. Disclosure of Micro and Small Enterprises (Trade Payables)

The company is in the process of compiling information from the suppliers regarding their status as Micro/ Small Scale Enterprises, so as to disclose the information as required by MSMED Act and Schedule VI of the Companies Act relating to Micro, Small and Medium Enterprises. In absence of confirmed information about the suppliers, it is practically not feasible to state the amount payable to them as on 31st March, 2015.

11. The balances of majority of the Trade Receivables, Trade Payables and Loan & Advances made and received, are subject to confirmation and as such there balances are reflected in the Balance Sheet as appearing in the books, pending reconciliation, the net effect is unascertainable.

12. Assets Taken/ Given on Operating Lease:

Some of the Office premises have been taken/given on operating leases for a period of less than 10 years and are generally renewable by mutual consent on mutually agreeable terms. The agreements have an escalation clause. There are no sub leases and the leases are generally cancellable in nature.

13. Segment Reporting

a) The Business Segments comprise the following:

- Agri Business

- Pharma, Chemical & Minerals

b) Business segments have been identified based on the nature and class of products and services, their customers and assessment of the differential risks and returns and financial reporting system within the Company.

c) The company operates throughout in India, hence, no distinction on the basis of geographical segment have been made.

d) Segment accounting policies

In addition to the significant accounting policies, applicable to the business as set out in note 1 'Notes to the Financial Statements', the accounting policies in relation to segment accounting are as under:

(i) Segment assets and liabilities:

Segment assets include all operating assets used by a segment and consist principally cash, debtors, inventories and fixed assets, net of allowances and provisions, which are reported as direct offsets in the balance sheet. Segment liabilities include all operating liabilities and consist principally of creditors and accrued liabilities. While most of the assets/liabilities can be directly attributed to individual segments, the carrying amount of certain assets/liabilities pertaining to two or more segment is allocated to the segment on reasonable basis.

(ii) Segment revenue and expenses :

Joint revenue and expenses of segments are allocated amongst them on a reasonable basis. All other segment revenue and expenses are directly attributable to the segment

(iii) Inter Segment Sales:

Inter-segment sales are accounted for at cost and are eliminated in consolidation.

e) Primary Segment information (Business Segments) for the year ended 31st March, 2015.

14. The Commissioner, Central Excise, Chandigarh, has proposed the classification of Poultry Keeping Machinery under Chapter 73 of the Central Excise Tariff Act, 1985 and has demanded the duty of ' 173.55 Lacs plus interest and penalty by invoking the extended period of limitation for 5 years. However, the company has cleared the goods as Poultry Keeping Machinery classifying the goods at -Nil- rate of duty under Chapter 84 of the CET Act, 1985. The company has been clearing the goods at -Nil- duty for more than last 5 years and the goods have been classified under Chapter 84 after duly intimating the department from time to time. Under Central Excise Law, the demand can be made for a period of one year under normal circumstances. However, in case of wilful suppression of facts, the duty can be demanded by invoking the extended period of limitation for last 5 years. In the aforesaid show cause notice, the department has raised the demand by invoking extended period of 5 years whereas since the activity has been undertaken after duly intimating the department therefore the demand is not sustainable for 5 years and at worst the demand can sustain for one year only.

The company has already paid the duty of Rs. 63.13 Lacs against the above demand as 'Duty Paid Under Protest'. Also the additional amount paid subsequent to the demand and till 31st March 2013 is deposited under protest. Therefore the total duty of Rs. 92.29 Lac already paid is shown as 'Amount recoverable in cash or in kind' in the Balance Sheet under the head Short Term Loan and Advances. The balance amount of Rs. 110.42 Lacs is pending payable against the demand and is shown as contingent Liability.

15. During the year interest paid on term loan (For IT Park Project) amounting to Rs. 158.76 Lacs (Previous Year Rs. 256.41 Lacs) has been capitalised in accordance with AS-16 borrowing Costs.

16. Financial reporting of interest in Joint Venture - Accounting Standard 27

Advance received include Rs. 12,29,49,002/- as advance received against joint development agreement entered into by the Company on 13th June, 2013 and addendum dated 12th July, 2013 with Alchemist Township India Limited for joint development of 7.2 acres of land of the Company situated at Village Dappar and Samlehri. The Project would be a residential development carried out under the name "Riviera Heights" with a built up area of at least 6,30,000 square feet. The Company is entitled to an overall advance of Rs. 50 Crores against the 35% share of the developed area along with proportionate rights in the land of the said project, which the developer is required to make available with the Company by 31st March, 2016. The advance would be in the nature of a current account and the developer can demand withdrawal of the advance, subject to approval of the Company.

18. Some portions of the fixed assets records have been misplaced which have resulted in some estimates in order to tally the same with the books and records. The overall effect on depreciation for the year 2014-15 is not likely to be material.

19. The company extends credit from time to time as per market practices. In respect of export receivables, credit has been extended for export sales and regular follow up is being done to recover the amounts from all the parties involved. The management is confident of recovering all these dues and hence no provision is considered necessary against these receivables as of now.

20. An unclaimed dividend pertaining to dividend declared for the year 2006-07 amounting to Rs. 12,00,280/- was transferred to investor education and protection fund during the year 2014-15.

21. Previous year's figures have been reworked, regrouped, rearranged and reclassified wherever deemed necessary, to make them comparable.


Mar 31, 2014

Term Loans From Bank:

Punjab National Bank; Secured Loan of Rs. 15,12,51,224/- (Rupees Fifteen Crore Twelve Lac Fifty One Thousand Two Hundred Twenty Four Only) (Previous Year Rs. 17,87,51,224/- (Rupees Seventeen Crore Eighty Seven Lac Fifty One Thousand Two Hundred Twenty Four Only) secured through exclusive Charge on Fixed Assets Block, situated at F-5, Kishangarh Rajiv Gandhi I .T. Park, Chandigarh. Due within one year is Rs. 3.00 Crore (Rupees Three Crore Only) (Previous Year Rs. 3.00 Crore (Rupees Three Crore Only).

The loan has been guaranteed by Mr. Kanwar Deep Singh in the capacity of the director till 31st August, 2012 and thereafter being the promoter of the company.

Term Loan carries interest @ base rate 4% and is repayable in 84 monthly installment of Rs. 25,00,000/- (Rupees Twenty Five Lac Only) each, commencing from 30th April, 2013.

Vehicle Loans from Bank:

Vehicle Loans of Rs. 95,99,202/- (Rupees Ninety Five Lac Ninety Nine Thousand Two Hundred Two Only) (Previous Year Rs. 1,35,87,838/- (Rupees One Crore Thirty Five Lac Eighty Seven Thousand Eight Hundred Thirty Eight Only) are secured against hypothecation of vehicles. Due with in one year is Rs. 44,12,985/- (Rupees Forty Four Lac Twelve Thousand Nine Hundred Eighty Five Only) (Previous year Rs. 55,92,618/- (Rupees Fifty Five Lac Ninety Two Thousand Six Hundred Eighteen Only).

Vehicle Loans have been procured from various banks with rate of interest varying from 9% to 12% with repayment term of 3 to 5 Years.

Inter Corporate Loan:

Inter Corporate loan has been received from KDS Corporation Pvt Limited (a promoter group Company) and Technology Park Limited (a party covered under section 301 of the companies Act. 1956) amounting to Rs. 49.71 Crores and Rs. 704.60 Crores. The Terms of repayment with respect to loan from KDS Corporation Private Limited have not been defined and is repayable on the mutual agreement of both the parties involved, hence terms are not prejudicial to the interest of the company. Loan from Technology Park Limited is repayable on service of a minimum notice of 12 months by the lender for a repayment in excess of Rs. 50.00 Crores, however upon the concurrence of the Company, hence terms are not prejudicial to the interest of the Company. The Inter Corporate Loans obtained by the Company are non interest bearing.

1. Contingent Liabilities and Commitments (Rs. In Lacs)

Particulars Year Year 31.03.2014 31.03.2013 (Rs.) (Rs.)

Contingent Liabilities

Corporate Guarantees 3597.49 3049.45

Disputed demand under excise duty

(Net of duty deposited under protest) 110.42 110.42

Claims Against the company not acknowledged as debts 13.60 12.00

Letter of Credit -

Commitments

Estimated amount of Contract remaining to be executed on capital account and not provide for (Net of Advances) 139.92 487.66

2. In the opinion of the management the current assets, loans and advances are of the value stated, if realised in the ordinary course of business. Out of the total amount of Loan and Advances a Sum of Rs. 4.60 Crores stands outstanding from Medisphare Marketing Limited. The company has initiated a legal .action in the Kolkata High Court for recovery of the same.

3. The Company had entered into a scheme of arrangement under section 391-394 of the Companies Act, 1956 with Alchemist Foods Limited, a wholly owned subsidary which had been approved by the Hon''ble High Court of Delhi and High Court of Punjab and Haryana at Chandigarh vide its order dated 1st November, 2010 & 2nd December, 2010 respectively. The same had been registered with the Office of Registrar of Companies at Delhi and Chandigarh dated 2nd December, 2010 & 23rd December, 2010. Hence, appointed date for the implementation of the scheme was 23rd December, 2010 with effect from 1st April 2008, being the effective date. The scheme of arrangement was duly implemented in the financial year 2010-11.

As per scheme, food division of Alchemist limited had been demerged from the Company and transferred to and vested in Alchemist Foods Limited. All the properties, rights and power, assets, both movable and immoveable, liabilities including contingent liabilities and reserves, all income and expenses of the Food Division have without further act or deed been transferred to and vested with Alchemist Foods Limited at their book values, as a going concern with effect from the appointed date i.e. 1st April, 2008. In consideration, thereof, Alchemist Foods Limited had issued 1,00,00,000 Equity Shares of Rs. 10/- each at a premium of Rs. 90/- per shares to Alchemist Limited and an amount of Rs. 27,44 Crores was treated as unsecured loan from Alchemist Limited to Alchemist Foods Limited.

As per Scheme of arrangement, Authorized share capital of Alchemist Limited i.e. Rs. 121.25 Crores as on effective date i.e. 1st April, 2008 had been partly clubbed with Authorized Share Capital of the Transferee Company i.e. Alchemist Foods Limited. Accordingly, after implementation of scheme of arrangement, authorized share capital of Alchemist Limited had been reduced to Rs. 80.00 Crores consisting of 3.00 Crore equity shares of Rs. 10/- each aggregating to Rs. 30.00 Crores and 50.00 Lac redeemable preference shares of Rs. 100/- each aggregating to Rs. 50.00 Crores.

4. Alchemist Limited has four subsidiaries namely Alchemist Foods Limited, Alchemist Infrastructures Private Limited, Alchemist Hospitality Group Limited and Alchemist Enterprises Pte Limited. In accordance with General Circular No. 2/2011 dated 8th February, 2011 issued by the Ministry of Corporate Affairs, Government of India, the Balance Sheet, Statement of Profit and Loss and other documents of subsidiary companies are not being attached with the Financial Statement of the Company.

5. Related Party Disclosures:

In accordance with the Accounting Standard (AS-18) on related party disclosure where controls exists and where transaction have taken place and description of the relationship as identified and certified by management are as follows:

Key Managerial Personnel

* Maj. Gen. (Retd.) Anil Oberoi

* Mr. Pavan Kumar Verma

Subsidiary:

* Alchemist Foods Limited

* Alchemist Infrastructures Private Limited

* Alchemist Hospitality Group Limited

* Alchemist Enterprise Pte Limited, Singapore

Associates:

* Alchemist Hospitals Limited

* Alchemist Airways Private Limited

* Alchemist Realty Limited

* Black Cat Protection Services Private Limited

* KDS Corporation Private Limited

* Optimum Constructors and Developers Limited

* Platinum Ventures Limited

* A1 News Network Private Limited

* Alchemist Media Limited

* Dooteriah & Kalej Valley Tea Estate Private Limited

* Alchemist Medisphere Limited

* Technology Parks. Limited

* Anant Media Private Limited

Joint Venture:

* Alchemist Township India Limited

6. As per Accounting Standard - 28 "Impairment of Assets", the company has assessed the conditions of all the assets used in its operation and is of the opinion that there is no impairment of assets, hence no provision was made.

7. Finished Goods Stock of Steel Division for year 2014 has been carried over including excise duty.

8. Common Expenses relating to Head Office and other administrative office have been allocated to various divisions on the following basis.

i) Financial Cost - Fixed & Current Assets Employed

ii) Other Expenses - Sales/Reasonable Estimations

9. During the year 12,80,380 (Previous year 1,36,600) preference shares were redeemed and as per provisions of the Companies Act, 1956 a sum of Rs. 1,07,38,843/- (Previous Year Rs. 1,36,60,000/-) has been transferred to Capital Redemption Reserve out of General Reserve and Rs. 11,72,99,157 (Previous Year - Nil) has been transferred from Statement of Profit & Loss A/c. Further a sum of Rs. 11,82,60,731/- (Previous Year Rs. 2,95,22,269/-) has been transferred from Share Premium Account and a Sum of Rs. 19,19,73,292/- (Previous Year - Nil) has been transferred from Statement of Profit & Loss A/c to Preference Shares redemption reserve on account of premium amount of preference shares redeemed.

10. Disclosure of Micro and Small Enterprises (Trade Payables)

The company is in the process of compiling information from the suppliers regarding their status as Micro/ Small Scale Enterprises, so as to disclose the information as required by MSMED Act and Schedule VI of the Companies Act relating to Micro, Small and Medium Enterprises. In absence of confirmed information about the suppliers, it is practically not feasible to state the amount payable to them as on 31st March, 2014.

11. The balances of some of the Trade Receivables, Trade Payables and Loan & Advances made and received, are subject to confirmation and as such there balances are reflected in the Balance Sheet as appearing in the books, pending reconciliation, the net effect is unascertainable.

12. Assets Taken/ Given on Operating Lease:

Some of the Office premises have been taken/given on operating leases for a period of less than 10 years and are generally renewable by mutual consent on mutually agreeable terms. The agreements have an escalation clause. There are no sub leases and the leases are generally cancellable in nature.

13. Segment Reporting

a) The Business Segments comprise the following:

* Agri Business

* Pharma & Chemical

b) Business segments have been identified based on the nature and class of products and services, their customers and assessment of the differential risks and returns and financial reporting system within the Company.

c) The company operates through in India, hence, no distinction on the basis of geographical segment have been made.

d) Segment accounting policies

In addition to the significant accounting policies, applicable to the business as set out in note 1 ''Notes to the Financial Statements'', the accounting policies in relation to segment accounting are as under:

(i) Segment assets and liabilities:

Segment assets include all operating assets used by a segment and consist principally cash, debtors, inventories and fixed assets, net of allowances and provisions, which are reported as direct offsets in the balance sheet. Segment liabilities include all operating liabilities and consist principally of creditors and accrued liabilities. While most of the assets/liabilities can be directly attributed to individual segments, the carrying amount of certain assets/liabilities pertaining to two or more segment are allocated to the segment on reasonable basis.

(ii) Segment revenue and expenses:

Joint revenue and expenses of segments are allocated amongst them on a reasonable basis. All other segment revenue and expenses are directly attributable to the segment

(iii) Inter Segment Sales:

Inter-segment sales are accounted for at cost and are eliminated in consolidation.

Loans and advance shown above fall under the category of Loan and Advance in nature of loan which are repayable on demand by the company by giving a prior notice of at least 12 months, subject to concurrence of the loanee.

b) The loanee has not made any investments in shares of the Company.

14. The Commissioner, Central Excise, Chandigarh, has proposed the classification of Poultry Keeping Machinery under Chapter 73 of the Centra! Excise Tariff Act, 1985 and has demanded the duty of Rs. 173.55 Lacs plus interest and penalty by invoking the extended period of limitation for 5 years. However, the company has cleared the goods as Poultry Keeping Machinery classifying the goods at -Nil- rate of duty under Chapter 84 of the CET Act, 1985. The company has been clearing the goods at -Nil- duty for more than last 5 years and the goods have been classified under Chapter 84 after duty intimating the department from time to time. Under Central Excise Law, the demand can be demanded for a period of one year under normal circumstances. However, in case of wilful suppression of facts, the duty can be demanded by invoking the extended period of limitation for last 5 years. In the aforesaid show cause notice, the department, has raised the demand by invoking extended period of 5 years whereas since the activity has been undertaken after duly intimating the department therefore the demand is not sustainable for 5 years and at worst the demand can sustain for one year only.

The company has already paid the duty of Rs. 63.13 Lacs against the above demand as ''Duty Paid Under Protest''. Also the additional amount of Rs. 30.96 Lacs paid subsequent to the demand and till 31st March 2013 is deposited under protest. Therefore the total duty of Rs. 92.29 Lac already paid is shown as ''Amount recoverable in cash or in kind'' in the Balance Sheet under the head Short Term Loan and Advances. The balance amount of Rs. 110.42 Lacs is pending payable against the demand is shown as contingent Liability.

15. During the year 2012-2013, pharmaceutical division had started the transition from marketing through a sole selling agent to distribution and marketing through own network of C&F/consignee agents/ stockists/distributors.

During the current year 2013-14, Company has successfully completed the design, development & implementation of a pan India network system to generate demand & to ensure availability of Company''s products with the retailers. Development & establishment of this network system is an intangible asset, as defined in AS 26, under the control of the Company & economic benefits are expected to flow to the Company in future. Expenses incurred directly for the development of this network system, amounting to Rs. 5.90 Crores (Previous Year Rs. 5.42 Crores) have been attributed to this intangible asset & capitaiised under the head Fixed Assets on 31st March, 2014.

In this distribution network, specialist doctor population of 45000 and 6000 stockists, have been empanelled with the company, and through this the company is able to touch base at least 35000 retailers.

16. During the year interest paid on term loan (For IT Park Project) amounting to Rs. 256.41 Lacs (Previous Year Rs. 231.36 Lacs) has been capitalised in accordance with AS-16 borrowing Costs.

17. Financial reporting of interest in Joint Venture-Accounting Standard 27 Advance received include Rs. 12,29,49,002/- as advance received against joint development agreement entered into by the Company on 13th June, 2013 and addendum dated 12th July, 2014 with Alchemist Township India Limited for joint development of 7.2 acres of land of the Company situated at Village Dappar and Samlehri. The Project would be a residential development carried out under the name "Riviera Heights" with a built up area of at least 6,30,000 square feet. The Company is entitled for an overall advance of Rs. 50 Crores against the 35% share of the developed area along with proportionate rights in the land of the said project, which the developer is required to make available with the Company by 31st March, 2016. The advance would be in the nature of a current account and the developer can demand for withdrawal of the advance, subject to approval of the Company.

18. Previous year''s figures have been reworked, regrouped, rearranged and reclassified wherever deemed necessary, to make them comparable.


Mar 31, 2013

1. In the opinion of the management the current assets, loans and advances are of the value stated, if realised in the ordinary course of business. Out of the total amount of Loan and Advances a Sum of Rs. 4.60 Crores stands outstanding from Medisphere Marketing Limited. The company has initiated a legal action in the Kolkata High Court for recovery of the same.

2. The Company had entered into a scheme of arrangement under section 391-394 of the Companies Act, 1956 with Alchemist Foods Limited, a wholly owned subsidiary which had been approved by the Hon''ble High Court of Delhi and High Court of Punjab and Haryana at Chandigarh vide its order dated 1st November, 2010 & 2nd December, 2010 respectively. The same had been registered with the Office of Registrar of Companies at Delhi and Chandigarh dated 2nd December, 2010 & 23rd December, 2010. Hence, appointed date for the implementation of the scheme was 23rd December, 2010 with effect from 1st April 2008, being the effective date. The scheme of arrangement was duly implemented in the financial year 2010-11.

As per scheme, food division of Alchemist limited had been demerged from the Company and transferred to and vested in Alchemist Foods Limited. All the properties, rights and power, assets, both movable and immoveable, liabilities including contingent liabilities and reserves, all income and expenses of the Food Division have without further act or deed been transferred to and vested with Alchemist Foods Limited at their book values, as a going concern with effect from the appointed date i.e. 1st April, 2008. In consideration, thereof, Alchemist Foods Limited had issued 1,00,00,000 Equity Shares of Rs. 10/- each at a premium of Rs. 90/- per shares to Alchemist Limited and an amount of Rs 27.44 Crores was treated as unsecured loan from Alchemist Limited to Alchemist Foods Limited.

As per Scheme of arrangement, Authorized share capital of Alchemist Limited i.e. Rs. 121.25 Crores as on effective date i.e. 1st April, 2008 had been partly clubbed with Authorized Share Capital of the Transferee Company i.e. Alchemist Foods Limited. Accordingly, after implementation of scheme of arrangement, authorized share capital of Alchemist Limited had been reduced to Rs. 80.00 Crores consisting of 3.00 Crore equity shares of Rs. 10/- each aggregating to Rs. 30.00 Crores and 50.00 Lac redeemable preference shares of Rs. 100/- each aggregating to Rs 50.00 Crores.

3. Alchemist Limited has four subsidiaries namely Alchemist Foods Limited, Alchemist Infrastructures Pvt. Ltd., Alchemist Hospitality Group Limited and Alchemist Enterprises Pte. Ltd, Singapore in accordance with General Circular No. 2/2011 dated 8th February, 2011 issued by the Ministry of Corporate Affairs, Government of India, the Balance Sheet, Statement of Profit and Loss and other documents of subsidiary companies are not being attached with the Financial Statement of the Company.

4. Related Party Disclosures:

In accordance with the Accounting Standard (AS -18) on related party disclosure where controls exists and where transaction have taken place and description of the relationship as identified and certified by management are as follows:

Key Managerial Personnel

- Dr. Kanwar Deep Singh (Retired on 30th August, 2012)

- Maj. Gen. (Retd.) Anil Oberoi

Subsidiary:

- Alchemist Foods Limited

- Alchemist Infrastructures Pvt. Ltd.

- Alchemist Hospitality Group Ltd.

- Alchemist Enterprise (S) Pte Limited, Singapore

Associates:

- Alchemist Hospitals Limited

- Alchemist Airways Pvt. Ltd.

- Alchemist Realty Limited

- Black Cats Protections Pvt. Ltd.

- KDS Corporation Pvt. Ltd

- Optimum Constructors and Developers Limited

- Platinum Ventures Limited

- A 1 News Network Pvt Ltd

- Alchemist Media Limited

Relatives of Key Management Personnel

- Mr Karan Deep Singh

- Mr. Kaman Deep Singh

- Mr. Ravinder Singh

- Mrs. Hapreet Kaur

- Mrs. Isher Kaur

5. As per Accounting Standard – 28 "Impairment of Assets", the company has assessed the conditions of all the assets used in its operation and is of the opinion that there is no impairment of assets, hence no provision was made.

6. Finished Goods Stock of Steel Division for year 2013 has been carried over including excise duty.

7. Common Expenses relating to Head Office and other administrative office have been allocated to various divisions on the following basis.

i) Financial Cost - Fixed & Current Assets Employed

ii) Other Expenses - Sales/Reasonable Estimation

8. During the year 1,36,600 (Previous year 13,70,110) preference shares were redeemed and as per provisions of the Companies Act, 1956 a sum of Rs. 1,36,60,000/- (Previous Year 13,70,11,000/-) has been transferred to Capital Redemption Reserve out of General Reserve. Further a sum of Rs.-Nil-(Previous Year 16,65,83,209/-) has been transferred from General Reserve and a Sum of Rs 2,95,22,269/- (Previous Year Rs. 13,12,00,000/-) has been transferred from Securities Premium Reserve to Preference Shares redemption reserve on account of premium amount of preference shares redeemed.

9. Disclosure of Micro and Small Enterprises (Trade Payables)

The company is in the process of compiling information from the suppliers regarding their status as Micro/ Small Scale Enterprises, so as to disclose the information as required by MSMED Act and Schedule VI of the Companies Act relating to Micro, Small and Medium Enterprises. In absence of confirmed information about the suppliers, it is practically not feasible to state the amount payable to them as on 31st March, 2013.

10. The balances of some Debtors and Creditors, Loan and Advances are subject to confirmation and as such their balances are reflected in the Balance Sheet as appearing in the books, pending reconciliation, the net effect is unascertainable.

11. Assets Taken/ Given on Operating Lease:

Some of the Office premises have been taken/given on operating leases for a period of less than 10 years and are generally renewable by mutual consent on mutually agreeable terms. The agreements have an escalation clause. There are no sub leases and the leases are generally revocable in nature.

12. Segment Reporting

a) The Business Segments comprise the following :

— Agri Business

— Pharma & Chemical

b) Business segments have been identified based on the nature and class of products and services, their customers and assessment of the differential risks and returns and financial reporting system within the Company.

c) The company operates through India and the risk and returns of Alchemist are not affected by any economic or cultural or other considerations prevailing in any geography where the goods or services are sold, so segmentation on Geographical basis is not applicable.

d) Segment accounting policies

In addition to the significant accounting policies, applicable to the business as set out in note 1

''Notes to the Financial Statements'', the accounting policies in relation to segment accounting are as under:

(i) Segment assets and liabilities:

Segment assets include all operating assets used by a segment and consist principally cash, debtors, inventories and fixed assets, net of allowances and provisions, which are reported as direct offsets in the balance sheet. Segment liabilities include all operating liabilities and consist principally of creditors and accrued liabilities. Which most of the assets/liabilities can be directly attributed to individual segments, the carrying amount certain assets/liabilities pertaining to two or more segment are allocated to the segment on reasonable basis. (ii) Segment revenue and expenses :

Joint revenue and expenses of segments are allocated amongst them on a reasonable basis. All other segment revenue and expenses are directly attributable to the segment (iii) Inter Segment Sales:

Inter-segment sales are accounted for at cost and are eliminated in consolidation.

13. During the year company took a building 25, Nehru Place on lease for a period of 108 Months. The company made improvements to the building to the tune of Rs. 385.94 Lacs, duly capitalised during the year and it was ready to use on 1st March, 2013. The company is depreciating the leasehold improvements over the balance period of lease i.e. 98 months, and accordingly one month depreciation is charged during the year.

14. The Commissioner, Central Excise, Chandigarh, has proposed the classification of Poultry Keeping Machinery under Chapter 73 of the Central Excise Tariff Act, 1985 and has demanded the duty of Rs. 173.55 Lacs plus interest and penalty by invoking the extended period of limitation for 5 years. However, the company has cleared the goods as Poultry Keeping Machinery classifying the goods at –Nil- rate of duty under Chapter 84 of the CET Act, 1985. The company has been clearing the goods at –Nil- duty for more than last 5 years and the goods have been classified under Chapter 84 after duly intimating the department from time to time. Under Central Excise Law, the demand can be recovered for a period not more than one year under normal circumstances. However, in case of willfull suppression of facts, the duty can be demanded by invoking the extended period of limitation for last 5 years. In the aforesaid show cause notice, the department has raised the demand by, invoking extended period of 5 years whereas since the activity has been undertaken after duly intimating the department. Therefore the demand is not sustainable for 5 years and at worst the demand can sustain for one year only.

The company has already paid the duty of Rs. 63.13 Lacs accruing during the last one year as ''Duty Paid Under Protest''. Also the additional amount of Rs 30.96 Lacs paid till 31st March 2013 is deposited under protest. Therefore the total duty of Rs. 92.29 Lacs already paid is shown as ''Amount recoverable in cash or in kind'' in the Balance Sheet under the head Short Term Loan and advances. The balance amount of Rs. 110.42 Lacs is shown as Contingent Liability.

15. During the previous year, pharma division has switched from marketing through outsource selling network to distribution and marketing through own network of C&F/ consignee agents/ stockists/ distributors. Company is designing, developing & implementing a Pan India Network system to generate demand & to ensure availability of Company''s products with the retailers. Development & establishment of this network system is an intangible asset, as defined in AS 26, under the control of the Company & economic benefits are expected to flow to the Company in future. Expenses incurred directly for the development of this network system, amounting to Rs. 5.42 Crore have been attributed to this intangible asset & capitalised under the head "Intangible under Development" under Fixed Assets.

16. During the year interest paid on term loan (For IT Park Project) amounting to Rs. 231.36 Lacs (Previous Year: 49.60 Lacs) has been capitalised in accordance with AS-16 borrowing Costs.

17. Previous year''s figure have been reworked, regrouped, rearranged and reclassified wherever deemed necessary to make them comparabl


Mar 31, 2012

1. The Revised Schedule VI has become effective from April 1, 2011 for the preparation of financial statements, this has significantly impacted the disclosure and presentation made in the financial statements. Previous year's figure have been reworked, regrouped, rearranged and reclassified wherever deemed necessary to make them comparable.

2. In the opinion of the management the current assets, loans and advances are of the value stated, if realised in the ordinary course of business. Out of the total amount of Loan and Advances a sum of Rs. 4.60 Crores is outstanding from Medisphare Marketing Limited. The company has initiated a legal action in the Kolkata High Court for recovery of the same.

3. The Company had entered into a scheme of arrangement under section 391-394 of the Companies Act, 1956 with Alchemist Foods Limited, a wholly owned subsidiary which had been approved by the Hon'ble High Court of Delhi and High Court of Punjab and Haryana at Chandigarh vide its order dated 1st November, 2010 & 2nd December, 2010 respectively. The same had been registered with the Office of Registrar of Companies at Delhi and Chandigarh dated 2nd December, 2010 & 23rd December, 2010. Hence, appointed date for the implementation of the scheme was 23rd December, 2010 with effect from 1st April 2008, being the effective date. The scheme of arrangement was duly implemented in the previous financial year 2010-11.

- As per scheme, food division of Alchemist limited had been demerged from the Company and merged with Alchemist Foods Limited. All the properties, assets, both movable and immoveable, liabilities including contingent liabilities and reserves, all income and expenses of the Food Division have without further act all deed been transferred to and vested with Alchemist Foods Limited at their book values, as a going concern with effect from the appointed date i.e. 1 st April, 2008. In consideration, thereof, Alchemist Foods Limited had issued 1,00,00,000 Equity Shares of Rs. 10/- each at a premium of Rs. 90/- per shares to Alchemist Limited and an amount of Rs. 27.44 Crores was treated as unsecured loan from Alchemist Limited to Alchemist Foods Limited.

-As per Scheme of arrangement, Authorized share capital of Alchemist Limited i.e. Rs . 1 2 1 . 25 Crores as on effective date i.e. 1st April, 2008 had been partly clubbed with Authorized Share Capital of the Transferee Company i.e. Alchemist Foods Limited . Accordingly, after implementation of scheme of arrangement, authorized share capital of Alchemist Limited had been reduced to Rs. 80.00 Crores consisting of 3.00 Crore equity shares of Rs. 10/- each aggregating to Rs. 30.00 Crores and 5 0.00 Lac redeemable preference shares of Rs. 100/- each aggregating to Rs. 50.00 Crores.

4. Alchemist Limited has three wholly owned subsidiary companies Alchemist Foods Limited, Alchemist Infrastructures Pvt. Ltd. and Alchemist Enterprises Pte. Ltd. In Accordance with General Circular No. 2/2011 dated 8th February 2011 issued by the Ministry of Corporate Affairs, Government of India, the Balance Sheet, Statement of Profit and Loss and other documents of subsidiary companies are not being attached with the Financial Statement of the Company.

5. Related Party Disclosures

- Key Managerial Personnel :

- Mr Kanwar Deep Singh

- Subsidiary:

- Alchemist Foods Limited

- Alchemist Enterprise (S) Pte Ltd.

- Alchemist Infrastructures Pvt. Ltd.

- Associates:

- Alchemist Lifesciences Limited

- Alchemist Hospitals Limited

- Alchemist Airways Pvt. Ltd.

- Alchemist Realty Limited

- Black Cat Protection Services Pvt. Ltd.

- KDS Corporation Pvt. Ltd

- Optimum Constructors and Developers Limited

- Relatives of Key Management Personnel

- Mr.Karan Deep Singh

- Mr. Kaman Deep Singh

- Mr. Ravinder Singh

- Mrs. Hapreet Kaur

- Mrs. Isher Kaur

6. As per Accounting Standard - 28 "Impairment of Assets", the company has assessed the conditions of all the assets used in its operation and is of the opinion that there is no impairment of assets, hence no provision was made.

7. Finished Goods Stock of Steel Division for year 2012 has been carried over including excise duty.

8. Segment Reporting

a) The Business Segments comprise the following:

- Agri Business

- Pharma & Chemical

b) Business segments have been identified based on the nature and class of products and services, their customers and assessment of the differential risks and returns and financial reporting system within the Company.

c) The company operates through in India, hence, no distinction on the basis of geographical segment has been made.

d) Segment accounting policies

In addition to the significant accounting policies, applicable to the business as set out in note 1 'Notes to the Financial Statements', the accounting policies in relation to segment accounting are as under:

(i) Segment assets and liabilities:

Segment assets include all operating asses used by a segment and consist principally cash, debtors, inventories and fixed assets, net of allowances and provisions, which are reported as direct offsets in the balance sheet. Segment liabilities include all operating liabilities and consist principally of creditors and accrued liabilities. While most of the assetsMiabilities can be directly attributed to individual segments, the certain assets/liabilities pertaining to two or more segment are allocated to the segment on reasonable basis.

(ii) Segment revenue and expenses:

Joint revenue and expenses of segments are allocated amongst them on a reasonable basis. All other segment revenue and expenses are directly attributable to the segment

(iii) Inter Segment Sales:

Inter-segment sales are accounted for at cost and are eliminated in consolidation.

9. During the year 13,70,110 preference shares were redeemed and as per provisions of the Companies Act, 1956 a sum of Rs. 13,70,11,000/- has been transferred to Capital Redemption Reserve out of General Reserve. Further a sum of Rs 16,65,83,209/- has been transferred from General Reserve and a sum of Rs. 13,12,00,000/- has been Transferred from Share Premium account to Preference Shares redemption reserve on account of premium amount of preference shares redeemed.

10. Disclosure of Micro and Small Enterprises (Creditors)

The company is in the process of compiling information from the suppliers regarding their status as Micro/ Small Scale Enterprises, so as to disclose the information as required by MSMED Act and Schedule VI of the Companies Act relating to Micro, Small and Medium Enterprises. In absence of confirmed information about the suppliers, it is practically not feasible to state the amount payable to them as on 31st March, 2012.

11. The balances of some Debtors and Creditors, Loan and Advances are subject to confirmation and are pending reconcilation.Such balances are reflected in the Balance Sheet as appearing in the books of accounts..

12. Assets Taken on Operating Lease:

Some of the Office premises have been taken on operating leases for a period of less than 10 years and are generally renewable at the option of the lessee. The agreements have an escalation clause. There are no sub leases and the leases are generally cancellable in nature.


Mar 31, 2011

1) CONTINGENT LIABILITIES ETC.

There is no contingent liabilities on account of letter of credit. Bank Guarantees & Corporate guarantee given to bank/financial and other institutions are given below :-

Sl. Particulars (Amt. in Rs. (Amt. in Rs. Lacs) 2011 Lacs) 2010

a) Corporate Guarantees 1877.00 1877.00

b) Bank Gurantees. (On Hundered % Margin) 106.00 41.68 Total 1983.00 1918.68

2. Previous year's figure have been reworked, regrouped, rearranged and reclassified wherever deemed necessary to make them comparable.

3. A sum of Rs,1,04,35,398/- (Rupees One Crore Four Lacs Thirty Five Thousand Three Hundred Ninety Eight Only) (Previous Year 1,14,82,119/- (Rupees One Crore Fourteen Lacs Eighty Two Thousand One Hundred Nineteen Only) is lying as unclaimed dividend in separate accounts with HDFC Bank, Chandigarh. During the year a sum of Rs. 18,34,385/- pertaining to unclaimed dividend for the year 2002-03 was transferred to Investor Education and Protection Fund pursuant to Section 205 of the Companies Act, 1956.

4. In the opinion of the management the current assets, loans and advances are of the value stated, if realised in the ordinary course of business. Out of the total amount of Loan and Advances a Sum of Rs. 4.60 Crores stands outstanding from Medisphare Marketing Limited. The company has initiated a legal action for recovery of the same.

5. Reduction in the value of the investments has been considered in the books, as the same are current investments. Current year Rs.8,03,683/-(Previous Year Rs.Nil).

6. The Company has entered into a scheme of arrangement under section 391-394 of the Companies Act, 1956 with Alchemist Foods Limited, a wholly owned subsidiary which has been approved by the Hon'ble High Court of Delhi and High Court of Punjab and Haryana at Chandigarh vjde its order dated 1st November, 2010 & 2nd December, 2010 respectively. The same has been registered with the Office of Registrar of Companies at Delhi and Chandigarh dated 2nd December, 2010 & 23rd December, 2010. Hence, appointed date for the implementation of the scheme comes to 23rd December, 2010 with effect from 1st April 2008 being the effective date.

As per scheme, food division of Alchemist limited has been demerged from the Company and merged with Alchemist Foods Limited. All the properties, assets, both movable and immovable, liabilities including contingent liabilities and reserves, all income and expenses of the Food Division have without further act all deed been transferred to and vested with Alchemist Foods Limited at their book values, as a going concern with effect from the appointed date i.e. 1st April, 2008. In consideration, thereof, Alchemist Foods Limited has issued 1,00,00,000 Equity Shares of Rs. 10/- each at a premium of Rs. 90/- per shares to Alchemist Limited and amount of Rs. 27.44 Crores be treated as unsecured loan from Alchemist Limited to Alchemist Foods Limited.

As per Scheme of arrangement, Authorized share capital of Alchemist Limited i.e. Rs. 121.25 Crores as on effective date i.e. 1st April, 2008 has been partly clubbed with Authorized Share Capital of the Transferee Company i.e. Alchemist Foods Limited. Accordingly, after implementation of scheme of arrangement, authorized share capital of Alchemist Limited has been reduced to Rs. 80.00 Crores consisting of 3.00 Crore equity shares of Rs. 10/- each aggregating to Rs. 30.00 Crores and 50.00 Lac redeemable preference shares of Rs. 100/- each aggregating to Rs. 50.00 Crores.

7. Alchemist Limited has two wholly owned subsidiary companies Alchemist Foods Limited and Alchemist Enterprises Re. Ltd. In Accordance with General Circular No. 2/2011 dated 8th February 2011 issued by the Ministry of Corporate Affairs, Government of India, the Balance Sheet, Profit and Loss Accounts and other documents of subsidiary companies are not being attached with the Balance Sheet of the Company.

8. Secured Loans:

a) Terms Loans

i) Punjab National Bank:- Secured Loan of Rs. 90,70,068/- (Rs. Ninety Lacs Seventy Thousand Sixty Eight Only) (Previous Year - Nil) secured through Exclusive Charge on Fixed Assets Block, situated at F-5, Kishangarh Rajiv Gandhi IT. Park, Chandigarh

b) Working Capital Facilities

i) Bank of India > Working Capital facility of Rs. 2,89,49,433/- (Rs. Two Crore Eighty Nine Lacs Forty Nine Thousand Four Hundred Thirty Three Only) Previous Year Rs. 2,74,01,332/- (Rs. Two Crore Seventy Four Lacs One Thousand Three Hundred Thirty Two Only) secured against hypothecation of Stocks & and book debt of the company's unit located at Chambaghat, Solan (HP.). It is further secured by collaterally secured of Land and Building and other structures (erected or to be erected) and other structure of above unit, immovable properties of the Unit situated at Rajgarh, Distt. Sirmour (HP.) and personal guarantee of Managing Director.

c) Demand Loans:-

Demand Loan of Rs. 69,53,663/- (Rs. Sixty Nine Lacs Fifty Three Thousand Six Hundred Sixty Three Only) (Previous Year Rs. 4,53,72,435/- (Rs. Rs. Four Crore Fifty Three Lacs Seventy Two Thousand Four Hundred Thirty Five Only) secured against the Term Deposit Receipts of the company.

d) Vehicle Loans :-

Vehicle Loans of Rs. 2,82,34,249/- (Rupees Two Crore Eighty Two Lacs Thirty Four Thousand Two Hundred Forty Nine Only) (Previous Year Rs. 3,12,07,003/- (Rupees Three Crore Twelve Lacs Seven Thousand Three Only) are Secured against hypothecation of vehicles.

9. RELATED PARTY DISCLOSURES

i) Key Management Personnel:

Sh. Kanwar Deep Singh, Managing Director is covered by the definition of Key Management Personnel. Remuneration is paid to Managing Director under his contract of employment with the company [see note 15 below]

b) During the year company supplied material worth Rs.773.67 Lacs to M/s Alchemist Life Science Limited, and Rs.8.32 Lacs to M/s Alchemist Hospitals Ltd, a sum of Rs.13.54 Lacs paid to Jass Developers on account of rent, an sum of Rs. 60.28 Lacs paid to Black Cat Protections Pvt. Ltd. on account of security services, rent of Rs.0.72 Lacs received from Alchemist Airways Pvt. Ltd. respectively. These supplies were made at the fair market rates and the term and condition thereof are not prejudicial to the interest of the company.

c) During the year, a sum of Rs.36.00 Lacs was paid to Mr. Kanwar Deep Singh, Key Managerial personnel and a sum of Rs. 0.64 Lacs each was paid to Mr. Karan Deep Singh and Mr. Kaman Deep Singh being the relative of Key Managerial Person respectively as rent.

d) During the year a sum of Rs. 25.14 Lac was paid to Mr. Kanwar Deep Singh, Rs. 2.35 lacs to Mr. Karan Deep Singh, Rs. 800/- to Mrs. Harpreet Kaur & Rs. 400/- Mrs. to Isher Kaur, Rs. 4.42 Lacs to Mr. Ravinder Singh, (Relative of Key Managerial Person), Rs. 34.88 Lacs to M/s K.D.S. Corporation Pvt. Ltd., Rs. 1.19 Lacs to M/s Optimum Constructors and Developers Limited (Associated Concern) on account of Dividend for the year 2009-10.

The Remuneration paid to Managing Director as per Section 309 of the Companies Act 1956 is within 5% of the net profits. The food division has been demerged from Alchemist Limited and merged with Alchemist Foods Ltd. (A Wholly owned subsidiary) from appointed date i.e. 23rd Dec. 2010 as per Scheme of Arrangement u/s 391-394 of the Act as approved by Hon'ble Court of Delhi and Punjab and Haryana High Court, Chandigarh vide its order(s) dated 1st Nov. 2010 & 2nd Dec. 2010 respectively. The profits for the purpose of payment of remuneration of Managing Director up to 24th Dec. 2010 has been calculated on consolidated basis and thereafter on Standalone basis & accordingly managerial remuneration has been calculated which is within the limit(s) as prescribed u/s 309 of the Companies Act, 1956.

10. As per Accounting Standard-28 "Impairment of Assets", the company has assessed the conditions of ail the assets used in its operation and is of the opinion that there is no impairment of assets, hence no provision was made.

11. Finished Goods Stock of Steel Division for year 2011 has been carried over including excise duty.

12. Common Expenses relating to Head Office and other Administrative Office have been allocated to various profit centers on the following basis

i) Financial Cost : Fixed and Current assets employed ii) Other Expenses : Sales/Reasonable Estimates.

13. During the year 12,70,170 preference shares were redeemed and as per provisions of the Companies Act, 1956 a sum of Rs. 12,70,17,000/- has been transferred to Capital Redemption Reserve out of General Reserve. Further a sum of Rs. 22,28,28,673/- has been transferred from General Reserve to Preference Shares redemption reserve on account of premium amount of preference shares redeemed.

14. DISCLOSURE OF MICRO AND SMALL ENTERPRISES (CREDITORS)

The company is in the process of compiling information from the suppliers regarding their status as Micro/Small Scale Enterprises, so as to disclose the information as required by MSMED Act and Schedule VI of the Companies Act relating to Micro, Small and Medium Enterprises. In absence of confirmed information about the suppliers, it is practically not feasible to state the amount payable to them as on 31 st March, 2011.

15. The balances of some Debtors and creditors, Loan and Advances are subject to confirmation and as such there balances are reflected in the Balance Sheet as appearing in the books, pending reconciliation, the net effect is unascertainable.

16. ASSETS TAKEN ON OPERATING LEASE:

Some of the Office premises have been taken on operating leases for a period of less than 10 years and are generally renewable at the option of the lessee. The agreements have an escalation clause. There are no sub leases and the leases are generally cancellable in nature.

17. The Company has announced a dividend of 20% for the current financial year. However, the CDT liability of Rs. 39,72,825/-accruing on the same, has not been provided. In light of the CDT of Rs. 40,75,902/- provided by the subsidary Alchemist Foods Limited. The netting benefit has been claimed on the basis of the provision contained under section 115-0 of the Income Tax Act, 1961.


Mar 31, 2010

1) CONTINGENT LIABILITIES ETC.

There is no amount payable against contingent liabilities on account of letter of credit and capital contract. Bank Guarantees & Corporate guarantee given to bank / financial and other institutions are given below :-

SI Particulars (Amt. in Rs. (Amt. in Rs. Lacs)2010 Lacs)2009

a) Corporate Guarantees 1877.00 1877.00

b) Bank Gurantees. (On Hundered % Margin) 41.68 138.80

Total 1918.68 2015.80

2. Previous years figure have been reworked, regrouped, rearranged and reclassified wherever deemed necessary to make them comparable.

3. A sum of Rs.1,14,82,119/- (Previous Year Rs, 1,07,25,249/-) is lying as unclaimed dividend in separate accounts with HDFC Bank, Chandigarh.

4. In the opinion of the management the current assets, loans and advances are approx of the value stated if realised in the ordinary course of business.

5. Reduction in the value of the investments has been considered in the books, as the same are current investments. Current year Rs. Nil (Previous Year Rs.14,64,737/-).

6. Secured Loans:

a) Terms Loans

i) Punjab National Bank :- Secured Loan of Rs.17,98,85,131/-(Rs. Seventeen Crore Ninty Eight Lacs Eighty Five Thousand One Hundred Thirty One Only)(Previous Year 3,46,63,224/- (Rupees Three Crore Forty Six Lacs Sixty Three Thousand Two Hundred Twenty four Only) secured through first Charge against Fixed Assets of plant situated at village Banmajra, Tehsil Kharar, Distt. Ropar, Punjab & Commercial Broiler Farms at Boothgardh and Ranjitpura, Poultry Feed Mill at Pathankot & Misc fixed Assets of retail outlets at different locations. It is further secured by Personal Guarantee of Managing Director.

ii) UCO Bank :- Secured Loan of Rs.1,50,00,000/- (Rs. One Crore Fifty Lacs Only) (Previous Year Rs.2,27,94,811/- (Rs. Two Crore Twenty Seven Lacs Ninety Four Thousand Eight Hundred Eleven Only) secured against Mortgage of Land & Building and other moveable & immovable fixed assets of the companys Egg Layer Farm (present & future) located at District Burdwan (West Bengal). It is further secured by personal Guarantee of Managing Director.

b) Working Capital Facilities

i) Punjab National Bank :- Working Capital facility of Rs. 3,55,53,171/- (Rs. Three Crore Fifty Five Lacs Fifty Three Thousand One Hundred Seventy One Only) Previous Year Rs. 2,31,27,790/- (Rs. Two Crore Thirty One Lacs Twenty Seven Thousand Seven Hundred Ninety Only) secured against hypothecation of Stocks & Receivables of the company Plant at Village Banmajra, Tehsil Kharar, Distt. Ropar,( Punjab), two Poultry Farms at Boothgarh & Ranjitpura and Feed Meel at Pathankot at ROC DELI and Diner Retail Outlets. It is further secured by Personal Guarantee of Managing Director, The Working capital facilities will also be collaterally secured by way of first charge on the block assets of food divisions except Durgapur unit of the company.

ii) UCO Bank:- Cash Credit Limit of Rs. 1,47,24,210/- (Rupees One Crore Forty Seven Lacs Twenty Four Thousand Two Hundred Ten Only) (Previous Year Rs. 1,32,10,621/- (Rs. One Crore Thirty Two Lacs Ten Thousand Six Hundred Twenty One Only) secured against hypothecation of entire current assets of the Companys Egg layer Farm including Stocks, SIP, Loans and advances and receivable of the Companys Durgapur Unit in District Burdwan (West Bengal). Its further secured by Personal Guarantee of Managing Director and collaterally secured by way of EMTD/exclusive charge on land & building and other movable and immovable fixed assets of the companys Egg Layer Farm for (present & future) located at District Burdwan (West Bengal).

iii) Bank of India :- Working Capital facility of Rs. 2,74,01,332/- (Rupees Two Crore Seventy Four Lacs One Thousand Three Hundred Thirty Two Only) (Previous Year Rs. 2,47,91,938/- (Rs. Two Crore Forty Seven Lacs Ninety One Thousand Nine Hundred Thirty Eight Only) secured against hypothecation of stocks and book debt of the companys unit located Chambaghat, Solan(H.P). It is further secured by collateral security of Land and Building and other structure (erected or to be erected) and other structures of above unit, immovable properties of the unit situated at Rajgarh, Distt. Sirmour (H.P.) and personal guarantee of Managing Director.

c) Demand Loans:-

Demand Loan of Rs. 4,53,72,435/- (Rs. Four Crore Fifty Three Lacs Seventy Two Thousand Four Hundred Thirty Five Only) (Previous Year Rs. 1,77,34,914/- (Rs. One Crore Seventy Seven Lacs Thirty Four Thousand Nine Hundred Fourteen Only) secured against the Term Deposit Receipts of the company.

d) Vehicle Loans:-

Vehicle Loans of Rs. 3,12,07,003 (Rupess Three Crore Twelve Lacs Seven Thousand Three Only) (Previous Year Rs. 4,91,06,680/- (Rupees Four Crore Ninety One Lacs Six Thousand Six Hundred Eighty Only) are Secured against hypothecation of vehicles.

7. RELATED PARTY DISCLOSURES

II) Detail of Related Parties Transaction:

b) During the year company supplied material worth Rs. 786.26 Lacs to M/s Alchemist Life Science Limited, and Rs.4.02 Lacs to M/s Alchemist Hospitals Ltd (associates concern) respectively. These supplies were made at the fair market rates and conditions thereof are not prejudicial to the interests of the company.

c) During the year, a sum of Rs.36.00 Lacs was paid to Mr. Kanwar Deep Singh, Key Managerial personnel as rent and a sum of Rs.0.61 Lacs each was paid to Mr. Karan Deep Singh and Mr. Kaman Deep Singh as rent being the relative of Key Managerial Person.

8. SEGMENT REPORTING

a) Segments have been identified in line with the Accounting Standard on Segment Reporting [AS-17] taking into account the organizational structure as well as differential risk and returns of these segments.

b) Income, Expenses, Assets and Liabilities that are identifiable with/allocable to segments are considered for determining the segment results, segment assets and segment liabilities.

9. The company has adopted the provisions of Accounting Standard-28 "Impairment of Assets" and has assessed the conditions of all the assets used in accordance with the guidelines stated in Accounting Standard-28.

10. Finished Goods Stock of Steel Division for year 2010 has been carried over including excise duty.

11. Common Expenses relating to Head Office have been allocated to various divisions on the following basis i) Financial Cost : Fixed and Current assets employed

ii) Other Expenses : Sales/Reasonable Estimates.

12. During the year 1,65,230 preference shares were redeemed and as per provisions of the Companies Act, 1956 a sum of Rs. 1,65,23,000 has been transferred to Capital Redemption Reserve out of General Reserve. Further a sum of Rs. 3,17,73,464 has been transferred from General Reserve to Preference Shares redemption reserve on account of premium amount of preference shares redeemed.

13. In view of insufficient information from Suppliers / Creditiors regarding their Status micro and small enterprises, the amount payable to them as on 31st March 2010 cannot be ascertained separately.

14. The equity share capital consists of 61,22,400 shares of Rs. 10/- issued as fully paid bonus shares in the ratio of 1:1 in the year 2006-07.

15. Sundry Creditors/Debtors, Loan and Advance have been taken at their book value subject to confirmation.

16. Disclosures as per Clause 32 of the Listing Agreement with the stock exchanges.

b) The loanee has not made any investments in shares of the Company.

 
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