Home  »  Company  »  Alkyl Amines Che  »  Quotes  »  Notes to Account
Enter the first few characters of Company and click 'Go'

Notes to Accounts of Alkyl Amines Chemicals Ltd.

Mar 31, 2015

1. Rights, preferences and restrictions

i. The Company has only one class of shares referred to as equity shares having par value of Rs. 5 (Rs. 10). Each holder of equity shares is entitled to one vote per share.

ii. The Company declares and pays dividend in Indian rupees. The dividend proposed by the Board of Directors is subject to the approval of the Shareholders in the ensuing Annual General Meeting. The Board of Directors, in their meeting on May 15, 2015, proposed a final dividend of Rs. 4 per equity share of face value of Rs. 5 each. The proposal is subject to the approval of shareholders at the Annual General Meeting. The total dividend appropriation for the year ended March 31, 2015 amounted to Rs. 981.98 lakh including corporate dividend tax of Rs. 166.12 lakh.

During the year ended March 31, 2014, the amount of per share dividend recognised as distribution to equity shareholders was Rs. 8 for face value of Rs. 10 each. The dividend appropriation for the year ended March 31, 2014 amounted to Rs. 954.52 lakh including corporate dividend tax of Rs. 138.66 lakh.

iii. In the event of liquidation of the Company, the holders of equity shares will be entitled to receive any of the remaining assets of the Company, after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders.

iv. With effect from September 9, 2014, one equity share of the Company from nominal value of Rs. 10 each is sub-divided (split) into two equity shares of nominal value of Rs. 5 each. All shares and per share information in the financial results reflect the effect of the sub-division (split) retrospectively for the earlier reporting periods.

2. Contingent Liabilities and Commitments

Particulars As at March 31, As at March 31, 2015 2014 Rs. In Rs. In Rs. In Rs. In Lakhs Lakhs Lakhs Lakhs

3. Contingent Liabilities :

(to the extent not provided for)

i. Claims against the 78.54 69.38 Company by Ex-employees in Labour Court not acknowledged as debts

ii. Income Tax (Amount 289.86 267.92 deposited Rs. 135.88 lakh) (Previous Year Rs. 228.07 lakh)

iii. Sales Tax (Amount 117.88 NIL deposited Rs. 1.00 lakh) (Previous year Rs. Nil lakh)

iv. Central Excise/Service 726.24 43.39 Tax (Amount deposited Rs. 21.07 lakh) (Previous Year Rs. Nil lakh)

v. By its order of February 18, 2002, the Bombay High Court, has directed that no transport fee on denatured ethyl alcohol, one of the raw materials of the Company, shall be recovered from the Company by the State Excise Authorities until the final disposal of the petition. The petition is pending disposal by the High Court and the amount estimated on this account is Rs. 887.75 lakh (Previous Year Rs. 771.15 lakh).

4. Fixed Assets:

In terms of Accounting Standard 11 on "The Effects of Changes in Foreign Exchange Rates" (AS - 11), on the basis of option available to the Company, the Company has capitalised exchange difference aggregating to Rs. 29.89 lakh (Previous Year Rs. 142.78 lakh) which arose on the settlement or restatement of foreign currency denominated long-term liabilities relating to the acquisition of Fixed Assets (to its Machinery and Machinery under installation - Capital Work-in-Progress). In terms of the clarification issued by the Ministry of Corporate Affairs by Circular No. 25/2012 of August 9, 2012, the Company has considered the entire amount of exchange differences for the purpose of capitalisation without bifurcating the same between borrowing costs in terms of Accounting Standard 16 on "Borrowing Costs" and exchange differences in terms of AS - 11.

Disclosures required for the above capitalisation of AS - 11:

5. During the year, the Company has received 49,800 Carbon Emission Reduction (CERs) duly certified by UNFCC. However, the credit for these CERs had already been recognised upto the Financial Year 2009-2010 on the reasonable estimate based on the generation of CERs from the related project. Subsequent thereto, in view of non- realisability of CERs, credit so recognised was reversed as Dimunition in Carbon Emission Reduction. Since the effect arising due to the above referred CERs had already been given in earlier years, the recognition, measurement and disclosure of CERs now certified would not arise. Even if the Company were to recognise such CERs as inventory, the net realisable price of the same is Nil. With effect from April 1, 2009, the Company has been recognising carbon credit for CERs on certification and not on generation.

6. The Company has called for balance confirmations from Trade Receivables and Trade Payables. It has received a few of the confirmations which have been reconciled with the records of the Company. The other balances have been taken as per the records of the Company.

7. Relationships (in relation to transactions with Company):

I. Subsidiary Companies:

i. Alkyl Speciality Chemicals Limited

ii. Alkyl Amines Europe SPRL, Belgium (ceased to be subsidiary w.e.f March 31, 2014)

II. Associate Company:

Diamines and Chemicals Limited

III. Key Management Personnel:

i. Yogesh M. Kothari (also has a control over the Company)

ii. Kirat Patel

iii. Suneet Y. Kothari

IV. Relative of Key Management Personnel:

Hemendra M. Kothari

V. Entities over which Key Management Personnel has Control:

i. Niyoko Trading & Consultancy Private Limited

ii. YMK Trading & Consultancy Private Limited

iii. Anjyko Investments Private Limited

iv. SYK Trading & Consultancy Private Limited

VI. Entities over which relative of Key Management Personnel has control:

i. Kamiko Investment & Trading Private Limited

ii. DSP HMK Holdings Private Limited

iii. DSP ADIKO Holdings Private Limited

8. Previous Year''s figures, wherever necessary, have been regrouped/reclassified to conform to the current year''s presentation. Figures in brackets, unless specified, represent previous year''s figures.


Mar 31, 2014

1.1 From the financial year 2009-10, the Company decided not to recognise Carbon Credits based on mere generation and recognise only when it is certified. Accordingly, the Carbon Credit which was already recognised upto March 31, 2009, on the basis of credits generated, though not certified, continues to be reflected after giving effect due to its realisable value of Rs. NIL (Rs. 128.90 lakhs). Accordingly, the amount of Rs. NIL (Rs. 131.98 lakhs) is charged for the year as Dimunition in Carbon Emission Reduction and at the year end, the amount of Carbon Credit was carried at Rs. NIL.

1.2 No expense is incurred and transferred to Intangible Assets under Development during the year.

2. Contingent Liabilities and Commitments

Particulars As at As at March 31. 2014 March 31, 2013

Rs. In Lakhs Rs.In Rs.In Rs.In Lakhs Lakhs Lakhs

2.1 Contingent Liabilities : (to the extent not provided for)

i. Claims against the Company by Ex-employees in Labour Court not acknowledged as debts 69.38 61.40

ii.Income Tax (Amount deposited Rs. 226.98 lakhs) (Previous Year Rs.174.59 lakhs) 267.92 272.37

iii. Inter State Sales Tax against "C" Form 736.26 462.34

iv. Central Excise/ Service Tax 43.39 48.70

v. By its order dated February 18, 2002, the Hon''ble High Court, Mumbai, has directed that no transport fee on denatured ethyl alcohol, one of the raw materials of the Company, shall be recovered from the Company by the State Excise Authorities until the final disposal of the petition. The petition is pending disposal by the High Court and the amount estimated on this account is Rs. 771.15 lakhs (Previous Year Rs. 561.99 lakhs).

3. Fixed Assets:

In terms of Accounting Standard 11 on "The Effects of Changes in Foreign Exchange Rates" (AS - 11), on the basis of option available to the Company, the Company has capitalised exchange difference aggregating to Rs. 142.78 lakhs (Previous Year Rs. 69.63 lakhs) which arose on the settlement or restatement of foreign currency denominated long-term liabilities relating to the acquisition of Fixed Assets (to its Machinery and Machinery under installation - Capital Work-in-Progress). In terms of the clarification issued by the Ministry of Corporate Affairs by Circular No. 25/2012 of August 9, 2012, the Company has considered the entire amount of exchange differences for the purpose of capitalisation without bifurcating the same between borrowing costs in terms of Accounting Standard 16 on "Borrowing Costs" and exchange differences in terms of AS - 11.

4. The Company has called for balance confirmations from Trade Receivables and Trade Payables. It has received a few of the confirmations which have been reconciled with the records of the Company. The other balances have been taken as per the records of the Company.

5. Disclosure as per Accounting Standard 17 on "Segment Reporting":

5.1 Primary Segmenl:

The Company is exclusively engaged in (he business of "Specialty Chemicals". This in the context of AS 17 "Segment Reporting", notified under the Companies (Accounting Standard) Rules, 2006, constitutes one single primary segment.

5.2 Relationships:

I. Subsidiary Companies:

i. Alkyl Speciality Chemicals Limited

ii. Alkyl Amines Europe SPRL, Belgium

II. Associate Company:

Diamines and Chemicals Limited

III. Key Management Personnel:

i. Yogesh M. Kothari (also has a control over the Company)

ii. Kirat Patel

iii. Suneet Y. Kothari

IV. Relative of Key Management Personnel:

Hemendra M. Kothari

V. Entities on which Key Management Personnel has Control: i. Niyoko Trading & Consultancy Private Limited

ii. YMK Trading & Consultancy Private Limited

iii. Anjyko Investments Private Limited

iv. SYK Trading & Consultancy Private Limited

VI. Entities on which relative of Key Management Personnel has control: i. Kamiko Investment & Trading Private Limited

ii. DSP HMK Holdings Private Limited iii. ADIKO Investment Private Limited

6. Disclosure as per Accounting Standard 19 on "Leases":

6.1 Where the Company is a Lessee:

i. The Company has taken residential, office and godown premises under operating lease on leave and licence agreement. These are generally cancellable and range between 11 months and five years under leave and licence, or longer for other leases and are renewable by mutual consent on mutually agreeable terms.

ii. Lease/Rent payments are recognised in the Statement of Profit and Loss as ''Rent'' under ''Other Expenses'' in Note 26.

iv. Land taken on lease have been amortised over the respective lease period and Rs. 8.96 lakhs (Previous Year Rs. 3.88 lakhs) has been amortised during the year.

6.2 Where the Company is a Lessor:

i. The Company has given office premises under operating lease on leave and licence agreement. These are generally cancellable and range between 11 months and five years under leave and licence, or longer for other leases and are renewable by mutual consent on mutually agreeable terms.

ii. Lease/Rent receipts are recognised in the Statement of Profit and Loss as ''Miscellaneous Income'' under ''Other Income'' in Note 21.

7. Previous Year''s figures, wherever necessary, have been regrouped/reclassified to conform to the current year''s presentation.


Mar 31, 2012

1.1 Rights, preferences and restrictions:

i. The Company has only one class of shares referred to as equity shares having par value of Rs 10. Each holder of equity shares is entitled to one vote per share.

ii. The Company declares and pays dividend in Indian rupees. The dividend proposed by the Board of Directors is subject to the approval of the Shareholders in the ensuing Annual General Meeting. The Board of Directors, in their meeting on May 22, 2012, proposed a final dividend of Rs 4 per equity share. The proposal is subject to the approval of shareholders at the Annual General Meeting. The total dividend appropriation for the year ended March 31, 2012 amounted to Rs 474.11 Lakhs including corporate dividend tax of Rs 66.18 Lakhs.

During the year ended March 31, 2011, the amount of per share dividend recognized as distribution to equity shareholders is Rs 3. The Dividend appropriation for the year ended March 31, 2011 amounted to Rs 356.76 Lakhs including corporate dividend tax of Rs 50.81 Lakhs.

iii. In the event of liquidation of the Company, the holders of equity shares will be entitled to receive any of the remaining assets of the Company, after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders.

2.1 Due to the write off and reclassification referred to in Note 11 of "Fixed Assets', there was an aggregate reduction in the Deferred Tax Liability to the extent of Rs 90.78 lakhs in the Financial Year 2010-11.

3.1 Cash Credits including Working Capital Demand Loan and Buyers' Credit from State Bank of India, Standard Chartered Bank and Axis Bank are secured by hypothecation of stocks of raw materials, semi-finished goods, finished goods, consumable stores and book debts of the Company, both, present and future, as mentioned in the joint deed of hypothecation dated December 29,1989 as amended from time to time, as well as by the second mortgage of the specified immovable properties of the Company.

4.1. The Lease Deed from MIDC in respect of Plot Nos. D-6/2, R-l and R-2 of the value of Rs 131.13 lakhs (Rs 131.13 lakhs) is yet to be executed.

4.2. Plant, Machinery and Equipments include Rs 390.87 Lakhs (Rs 390.87 Lakhs) being value of machinery installed at third party premises of Job Contractor, duly confirmed by them for the current year and reflected in the column of 'Additions" and "Depreciation-Withdrawal for Sale/Adjustment", respectively.

4.3. Adjustments to Capital Work-in-Progress represent capitalization to Fixed Assets.

4.4. Other Adjustments represent Borrowings Costs and Exchange Differences capitalized during the year as per Para 46/46A of ASH, Refer Note 28.2 to Financial Statements.

4.5. Borrowing Costs Capitalized during the year is Rs 143.52 Lakhs (Rs 133.87 Lakhs).

4.6. As regards Adjustment due to reclassification in previous year 2010-11, Refer Note 28.1 to Financial Statements.

5.1 From the financial year 2009-10, the Company decided not to recognize Carbon Credits based on mere generation and recognize only when it is certified. Accordingly, the Carbon Credit which was already recognized up to March 31, 2009, on the basis of credits generated, though not certified, continues to be reflected after giving effect due to its realizable value of Rs 264.06 lakhs (Rs 16.31 lakhs), included as Non- current asset at Rs 128.90 lakhs (Rs 392.95 lakhs). Accordingly, the amount of Rs 288.95 Lakhs (NIL) is charged for the year as Diminution in Carbon Emission Reduction.

6. Contingent Liabilities and Commitments:

As At March As At March 31, 2012 31, 2011 Rs.in Lakhs Rs.in Lakhs

6.1 Contingent Liabilities : (to the extent not provided for)

Matters under disputes/appeals :

i. Claims against the Company by Ex- employees 53.43 46.14 in Labour Court not acknowledged as debts

ii. Income Tax (Amount deposited Rs 124.75 lakhs 178.86 85.96 (Previous Year Rs 85.96 lakhs)).

iii. Inter State Sales Tax against 'C'Form 372.97 378.04

iv. Sales Tax 0.15 0.00

v. Service Tax 41.41 39.00

vi. By its order dated February 18, 2002, the Hon'ble High Court, Mumbai, has directed that no transport fee on denatured ethyl alcohol, one of the raw materials of the Company, shall be recovered from the Company by the State Excise Authorities until the final disposal of the petition. The petition is pending disposal by the High Court and the amount estimated on this account is Rs 471.47 Lakhs (Previous Year Rs 412.00 Lakhs).

6.2 Commitments :

a. Estimated amount of contracts remaining to be 91.71 126.53 executed on capital account

Less : Advances 35.98 51.74

Net Estimated Amount 55.73 74.79

b. Other Commitments NIL NIL

7. Fixed Assets:

7.1 On reconciliation of physical verification of Fixed Assets with the records of the Company, discrepancies were noticed as to the existence, as also on account of reclassification and the same were given effect during the financial year 2010-11. As a result, Fixed Assets amounting to Rs 42.00 lakhs were written off and Fixed Assets with the Gross Block of Rs 667.72 lakhs as at April 1, 2010 (with the corresponding accumulated depreciation of Rs 190.10 lakhs thereon upto March 31, 2010) were reclassified and reflected as such under respective Fixed Assets. Due to this reclassification, excess depreciation charged in earlier years of Rs 7.98 lakhs was considered while arriving at Depreciation for the said financial year 2010-11.

7.2 In terms of Accounting Standard 11 on "The Effects of Changes in Foreign Exchange Rates" (AS - 11), with effect from April 1, 2007, exchange differences arising on settlement or restatement of foreign currency denominated liabilities relating to the acquisition of Fixed Assets were recognized in the Statement of Profit and Loss. However, during the year, on the basis of option available to the Company, the Company has decided to add or deduct exchange differences arising on Long-term Foreign Currency Monetary items at rates different from those at which they were initially recorded so far as they relate to the acquisition of a depreciable capital asset. Accordingly, the Company has capitalised exchange difference of Rs 108.06 Lakhs to its machinery and machinery under installation i.e., Capital Work-in-Progress. As legally advised, the Company has considered the entire amount of exchange differences for the purpose of capitalization without bifurcating the same between borrowing costs in terms of Accounting Standard 16 on "Borrowing Costs" and exchange differences in terms of Accounting Standard 11. Had the Company not capitalized the exchange differences on Long-term Foreign Currency Monetary item, depreciation and profit for the year would have been lower by Rs 8.08 Lakhs and Rs 99.98 Lakhs respectively, and the Net Block and the carried forward surplus as on March 31, 2012 would have been lower by Rs 99.98 Lakhs.

8. The Company has called for balance confirmations from Trade Receivables and Trade Payables. It has received a few of the confirmations which have been reconciled with the records of the Company. The other balances have been taken as per the records of the Company.

9. Segment Reporting:

In accordance with Accounting Standard 17, the Company's activities fall into the category of Specialty Chemicals and hence, the Company has only one reportable segment.

10.1 Relationships:

I. Subsidiary Company:

i. Alkyl Specialty Chemicals Limited

ii. Alkyl Amines Europe SPRL, Belgium

II. Associate Company:

Demines and Chemicals Limited

III. Key Managerial Personnel:

i. Yogesh M. Kothari

ii. Kirat Patel

iii. Suneet Y. Kothari

IV. Relative of Key Managerial Personnel:

Hemendra M. Kothari

V. Entities on which Key Managerial Personnel has Control:

i. Niyoko Trading & Consultancy Private Limited

ii. YMK Trading & Consultancy Private Limited

iii. Anjyko Investments Private Limited

iv. SYK Trading & Consultancy Private Limited

VI. Entities on which relatives of Key Managerial Personnel has control:

i. Kamiko Investment & Trading Private Limited

ii. DSP HMK Holdings Private Limited

iii. ADIKO Investment Private Limited

11. Disclosure on Leases as per Accounting Standard 19 on "Accounting for Leases":

11.1 Where the Company is a Lessee:

i. The Company has taken residential, office and go down premises under operating lease or leave and license agreements. These are generally cancellable and range between 11 months and five years under leave and license, or longer for other leases and are renewable by mutual consent on mutually agreeable terms.

ii. Lease/Rent payments are recognized in the Statement of Profit and Loss as 'Rent 'under 'there Expenses' in Note 26.

* Figures for the year ended March 31, 2012, includes a sum of Rs 53,511.00 towards insurance. The same was not considered for the previous year ended March 31, 2011 as it was not material.

All outstanding derivatives are marked to market on the balance sheet date and accordingly, mark to market profit of Rs 16.52 Lakhs (Previous Year profit of Rs 46.81 Lakhs) has been recognized.


Mar 31, 2010

1. Sr. As At As At No. March 31, 2010 March 31, 2009 Rs. in Lakhs Rs. in Lakhs

b. Contingent Liabilities not provided for :-

i. Bank Guarantees 27.36 30.70

ii. Claims against the Company by Ex- employees in Labour Court not acknowledged as debts 39.50 33.00

iii. Disputed liability in respect of Income Tax demand (including interest) matter under appeal ( Amount deposited Rs. 2.26 Lakhs ) 114.33 112.07

iv. Inter State Sales Tax against "C" Form 226.11 221.02

v. Disputed liability in respect of Sales Tax Matters under appeal (Amount deposited Rs. Nil) 38.98 35.08

vi Disputed Liability in respect of Service Tax 44.62 NIL

vii Export obligation against Advance licence Amount is being Amount ascertained by the is being ascertained Management by the Management

viii. By its order dated February 18, 2002, the Honble High Court, Mumbai, has directed that no transport fee on denatured ethyl alcohol, one of the raw materials of the Company, shall be recovered from the Company by the State Excise Authorities until the final disposal of the petition. The petition is pending disposal by the High Court and the amount estimated on this account is Rs. 3.59 Crore (Previous Year Rs. 2.40 Crore).

2. The Company has called for balance confirmations from Sundry Debtors and Sundry Creditors. It has received a few of the confirmations which have been reconciled with the records of the Company. The other balances have been taken as per the records of the Company.

3. Hitherto, the Company has been accounting for self-generated Certified Emission Reduction (CERs) on the basis of credits generated, though not certified. Based on the Exposure Draft of the Guidance Note on "Accounting for Self-Generated Certified Emission Reduction (CER)" issued by the Institute of Chartered Accountants of India, from the current year, the Company has decided not to recognise such Carbon Credits based on mere generation. Accordingly, Carbon Credit for 13,530 CERs for Rs. 98.51 lakhs (at the rate of 12.15 Euros per CER) has not been recognised as income for the current year. However, the carbon credit which has already been recognised upto March 31, 2009 is reflected, after giving effect on account of exchange rate difference of Rs. 45.06 lakhs, as an asset at Rs. 376.64 lakhs.

4. Segment Reporting:

In accordance with Accounting Standard 17, the Companys activities broadly fall into the category of Speciality Chemicals and hence, the Company has only one reportable segment.

b. Relationships:

I. Subsidiary Company:

i. Alkyl Speciality Chemicals Limited

ii. Alkyl Amines Europe SPRL, Belgium

II. Associate Company:

i. Diamines and Chemicals Limited

III. Key Managerial Personnel: i. Yogesh M. Kothari

ii. Kirat Patel

iii. Suneet Y. Kothari

IV. Relatives of Key Managerial Personnel: i. Hemendra M. Kothari

ii Mrs. Nini Y. Kothari

V. Entities on which Key Managerial Personnel has Control: i. Niyoko Trading & Consultancy Private Limited

ii. YMK Trading & Consultancy Private Limited iii. Anjyko Investments Private Limited

VI. Entities on which relatives of Key Managerial Personnel has control: i. Kamiko Investment & Trading Private Limited

ii. DSP HMK Holdings Private Limited

iii. ADIKO Investment Private Limited

11. Disclosure on Leases as per Accounting Standard 19 on "Accounting for Leases":

a. Where the Company is a Lessee:

i. The Company has taken residential, office and godown premises under operating lease or leave and licence agreements. These are generally cancellable and range between 11 months and five years under leave and licence, or longer for other leases and are renewable by mutual consent on mutually agreeable terms.

ii. Lease/Rent payments are recognised in the Profit and Loss Account under Rent in Schedule 17.

5. The previous years figures, wherever necessary, have been regrouped, reclassified and recast to conform to the current years classification. Figures in bracket indicate those of previous year.

 
Subscribe now to get personal finance updates in your inbox!