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Notes to Accounts of Amal Ltd.

Mar 31, 2015

Note 1

Advance towards share capital amounting to Rs. 240 lacs refers to the amount received from the promoter company towards share capital during the year 1996-97 which has not been refunded. The Company has to issue the Equity shares of Rs. 10/- each to the promoter company at par as per the Modified Sanctioned Scheme (MS - 13) approved by the BIfR on July 01, 2013. The Company has applied for in-principle approval from ASE | BSE SEBI, which is pending. Considering the above, the advance has been shown as share application money pending allotment.

Note 2 i) The Company had reached a One Time Settlement with the secured creditors comprising of Corporate | Term loans availed from the banks and financial institutions under which the payments were made directly by the lender company (Atul Ltd) to them. By way of execution of Deed of Assignment of debts owed by the Company, the lender company has now acquired from these banks and financial institutions the debts and rights, title and interest in encumbrances, facility and underlying securities including inter alia comprised of all movable and immovable properties that have been charged by the Company in favour of these banks and financial institutions pursuant to the original deed of hypothecation entered into by the Company. The entire dues | debts against the banks and financial institutions have been fully satisfied for which ' No dues | debts certificates ' have been obtained from them and the charges have been modified and stands in favour of the lender company as secured loans.

ii) Terms of repayment of term loans:

a. Secured loan from Atul Ltd does not carry any interest and shall be repaid in three installments, first installment will be of Rs. 200.00 lacs in 2017-18, second installment will be of Rs. 300.00 lacs in 2018-19 and third installment will be of Rs. 628.89 lacs in 2019-20 as per the approved modified sanctioned scheme (MS - 13).

b. Unsecured loan which does not carry any interest is repayable after March 31, 2016 upon terms and conditions which will be mutually decided between the Company and the lender company (Atul Ltd) subject to prior approval of the BIfR.

NOTE 3 LEASE

The Company has taken land on cancellable lease at Atul from Atul Ltd for 97 years from february 03, 1996 on annual lease rent of Rs. 8,000/-.

NOTE 4 GOING CONCERN

The Company was declared sick by the Board for Industrial and financial Reconstruction (BIfR) on July 20, 2006 and the BIfR, vide its order dated July 16, 2009, sanctioned the revival scheme for the Company which was further modified in June 2010. Relevant adjustments as required by the Scheme including recasting of creditors had been carried out in the books of account.

Subsequently, the Appellate Authority for Industrial and financial Reconstruction (AAIfR) vide its order dated March 22, 2011 allowed the appeal filed by one of the unsecured creditors and remanded the case back to the BIfR for considering revival scheme through Operating Agency (OA). IDBI Bank Ltd (IDBI), appointed as OA by BIfR, reviewed the Draft Rehabilitation Scheme (DRS) prepared by the Company and submitted it to BIfR on february 16, 2012. The Company revised the DRS with cut-off date as March 31, 2013 and the same was approved by BIfR in its meeting held on July 01, 2013 as Modified Sanctioned Scheme (MS - 13). The salient features of MS - 13 include implementation of project, settlement of unsecured creditors at 30% of principal dues (as approved under earlier scheme) and issue of shares to promoter company towards advance received against share application money. further, the Company has applied to Central Board of Direct Taxes for carry forward of business losses beyond eight years which is approved subject to certain conditions specified in CBDT order.

Due to adverse market condition and because of the change in regulatory norms in USA, the Company has proposed to shelve the plan of setting-up pMPAA project as stated in MS-13. However, in order to turnaround, the Management has contemplated other alternatives and considered the Merger with its parent company; Atul Ltd.

The Board of Directors (Board) has approved the proposed merger of the Company with Atul Ltd. The Board has approved share swap ratio of 1 Equity share of the face value of Rs. 10 each fully paid up of Atul Ltd for every 50 Equity shares of the face value of Rs. 10 each fully paid up of Amal Ltd at its meeting held on December 05, 2014. The Company is in the process of submitting the Modified Draft Rehabilitation Scheme (MDRS) (Merger Scheme) to the Board for Industrial and financial Reconstruction (BIfR) through the Operating Agency for obtaining their approval. Under the proposed Scheme, the entire undertaking of Amal Ltd together with all assets and liabilities will be transferred to Atul Ltd. In view of the above, books of account have been prepared on going concern basis. The appointed date of the proposed Scheme is April 1, 2014. Upon approval of Scheme by the BIfR, effect of the Scheme will be given in the books of account.

Above disclosures have been made based on information available with the Company, for suppliers who are registered as Micro, Small and Medium Enterprise under. The Micro, Small and Medium Enterprise Development Act, 2006 as at March 31, 2015. The auditors have relied upon in respect of this matter.

a) Defined contribution plan:

i) Provident fund

ii) State defined contribution plans

- Employers' contribution to Employees' State Insurance

- Employers' contribution to Employees' Pension Scheme 1995

The Provident fund and the state defined contribution plan are operated by the Regional Provident fund Commissioner. Under the scheme, the Company is required to contribute a specified percentage of payroll cost to the retirement benefit scheme to fund the benefits. These funds are recognized by the income tax authorities.

b) Defined benefit plans:

i) Gratuity

ii) Leave encashment

As per the Policy of the Company, Gratuity fund is maintained with Life Insurance Corporation of India Ltd under Group Gratuity Scheme.

Leave encashment is payable to eligible employees who have earned leaves during the employment and or on separation as per the Policy of the Company.

a) During 2014-15 the Company has revised the useful life of its fixed assets and provided depreciation as per the useful life and in the manner prescribed in Schedule II to the Companies Act 2013. Accordingly, depreciation charge for the year is higher by Rs. 2,39,000.

b) Till 2013-14, the depreciation provided on revalued portion of fixed assets was debited to Statement of Profit and Loss and corresponding amount was withdrawn from Revaluation Reserve and credited to the Statement of Profit and Loss. However, from current year, pursuant to Application guide on the provisions of Schedule II to the Companies Act, 2013, withdrawal from Revaluation Reserve into Statement of Profit and Loss is not permissible and the amount standing to the credit of Revaluation Reserve will be credited to General Reserve on retirement or disposal of revalued asset. As a result of above, Loss for the year is higher by Rs. 38,000.

NOTE 5

The Company operates in a single segment; manufacturing of Specialty Chemicals. further, the operations of the Company are confined within India. Accordingly, there are no separate reportable segment as per Accounting Standard - 17 on ' Segment Reporting ' and no further disclosures are required.

NOTE 6

During the year, the Company has not entered into any transaction in nature of loans and advances which falls within the purview of Clause 32 of Listing Agreements.

NOTE 7

figures for previous year have been regrouped reclassified rearranged wherever necessary to make them comparable to those for the current year.


Mar 31, 2014

Corporate information

Amal Ltd is a public company domiciled in India and incorporated on July 04, 1974 with the Registrar of Companies, Maharashtra under the provisions of the Companies Act, 1956. It''s shares are listed on ASE and BSE. Amal was incorporated under the name Piramal Rasayan Ltd on July 04, 1974. Its name was subsequently changed to Amal Rasayan Ltd by the said Registrar of Companies on November 10, 1986 and further to Amal Products Ltd on November 23, 1995 and further to its present name viz. Amal Ltd on September 11, 2003. The Company is engaged in the manufacturing of Speciality Chemicals (Sulphuric Acid Oleum).

Basis of preparation

These Financial Statements have been prepared on an accrual basis and under historical cost convention and in compliance, in all material aspects, with the applicable Accounting Principles in India, the applicable Accounting Standards notified under Section 211 (3C) and the relevant provisions of the Companies Act, 1956. The significant Accounting Policies adopted by the Company are detailed below.

(Rs. 000)

NOTE 1 CONTINGENT LIABILITIES AND COMMITMENTS

2013-14 2012-13

(a) Claims against the Company not acknowledged as debts in respects of:

Sales tax 6,668 6,668

Service tax Excise duty 123 -

Labour matter 1,500 -

Unsecured creditors 4,152 -

(b) Estimated amount of contracts remaining to be executed on capital accounts and not provided for (net of advances) 2,258 -

The Company has taken land on cancellable lease at Atul from Atul Ltd for 97 years from February 03, 1996 on annual lease rent of Rs. 8,000/-.

NOTE 2 GOING CONCERN

The Company was declared sick by the Board for Industrial and Financial Reconstruction (BIFR) on July 20, 2006 and the BIFR, vide its order dated July 16, 2009, sanctioned the revival scheme for the Company which was further modified in June 2010. Relevant adjustments as required by the scheme including recasting of creditors had been caried out in the books of account. Subsequently, the Appellate Authority for Industrial and Financial Reconstruction (AAIFR) vide its order dated March 22, 201 1 allowed the appeal filed by one of the unsecured creditors and remanded the case back to the BIFR for considering revival scheme through Operating Agency (OA). IDBI Bank Ltd (IDBI), appointed as OA by the BIFR, reviewed the Draft Rehabilitation Scheme (DRS) prepared by the Company and submitted it to the BIFR on February 16, 2012. The Company revised the DRS with cut-off date as March 31, 2013 and the same was approved by the BIFR in its meeting held on July 01,2013 as modified sanctioned scheme (MS - 13). The salient features of MS - 13 include implementation of project, settlement of unsecured creditors at 30% of principal dues (as approved under earlier scheme) and issue of shares to promoter company towards advance received against share application money. Further, the Company has applied to Central Board of Direct Taxes for carry forward of business losses beyond eight years.

MS - 13 envisages revival plan which is a multi faceted approach for improving the operational and financial strength of the Company. The Management believes that MS - 13 will further facilitate the revival and will have no adverse effects on the state of affairs of the Company. Further, necessary steps for revival as envisaged under the Scheme are being taken. In view of above, the books of account have been prepared on going concern basis.

NOTE 3 MICRO, SMALL AND MEDIUM ENTERPRISE DUES

Sundry creditors include Rs. Nil due to Micro, Small and Medium Enterprise. Following is the information, required to be furnished as per Section 22 of the Micro, Small and Medium Enterprise Development Act, 2006.

Above disclosures have been made based on information available with the Company, for suppliers who are registered as Micro, Small and Medium Enterprise under ''The Micro, Small and Medium Enterprise Development Act, 2006'' as at March 31, 2014. The auditors have relied upon in respect of this matter.

NOTE 4 EMPLOYEE BENEFITS

(a) Defined contribution plans:

(i) Provident fund

(ii) State defined contribution plans

- Employers'' contribution to employees'' state insurance

- Employers'' contribution to employees'' pension scheme 1995

The provident fund and the state defined contribution plan are operated by the Regional Provident Fund Commissioner. Under the scheme, the company is required to contribute a specified percentage of payroll cost to the retirement benefit scheme to fund the benefits. These funds are recognised by the income tax authorities.

The company has recognised the following amounts in the Statement of Profit and Loss for the year:

(b) Defined benefit plans:

(i) Gratuity

(ii) Leave encashment

The Gratuity fund is maintained with the LIC of India under Group Gratuity Scheme.

Leave encashment is payable to eligible employees who have earned leaves, during the employment and | or on separation as per the Company''s policy.

Valuation in respect of Gratuity and Leave encashment have been carried out by independent actuary, as at the Balance Sheet date, based on the following assumptions:

NOTE 5

The Company operates in a single segment i.e. manufacturing of Speciality Chemicals. Further, it''s operations are confined with in India. Accordingly, there are no separate reportable segment as per Accounting Standard - 17 on ''Segment Reporting'' and no further disclosures are required.

NOTE 6

During the year, the Company has not entered into any transaction in nature of loans and advances which falls within the purview of clause 32 of listing agreement.

NOTE 7

Figures for previous year have been regrouped reclassified rearranged wherever necessary to make them comparable to those for the current year.


Mar 31, 2013

1 Corporate Information

Amal Limited is a public company domiciled in India and incorporated on July 04 ,1974 with the Registrar of Companies, Maharashtra under the provisions of the Companies Act, 1956. It''s shares are listed on ASE and BSE. Amal was incorporated under the name Piramal Rasayan Limited on July 04, 1974. Its name was subsequently changed to Amal Rasayan Limited by the said Registrar of Companies on November 10,1986 and further to Amal Products Limited on November 23, 1995 and further to its present name viz. Amal Limited on September 11, 2003. The company is engaged in the manufacturing ofSpeciality Chemicals (Sulphuric Acid Oleum).

2 Basis of preparation

These financial statements have been prepared on an accrual basis and under historical cost convention and in compliance, in all material aspects, with the applicable accounting principles in lndia,the applicable accounting standards notified under Section 211 (3C) and the relevant provisions of the Companies Act, 1956.The significant accounting policies adopted by the Company are detailed below.

3. CONTINGENT LIABILITIES

(Rs.in ''000) Particulars 2012-13 2011-12

Contingent liabilities not provided for in respect of

(a) Sales tax matters under appeal 6,668 6,668

(b) Estimated amount of contract remaining to be executed on capital accounts and not provided for (net of advances)

4. EARNINGS PER SHARE

Earnings per Share (EPS) -The numerators and denominators used to calculate basic and diluted Earnings per Share:

5. LEASE

The Company has taken land on cancellable lease at Atul from M/s Atul Ltd for 97 years from February 3, 1996 on annual lease rent of Rs. 8,000/-.

6. GOING CONCERN

The Company was declared sick by Board of Industrial and Financial Reconstruction (BIFR) on July 20,2006 and BIFR vide its order dated July 16, 2009 sanctioned the revival scheme for the Company which was further modified in June 18,2010. Relevant adjustments as required by the scheme including recasting of creditors had been carried out in books of account.

Subsequently, the Appellate Authority of Industrial and Financial Reconstruction (AAIFR) vide its order dated March 22,2011 allowed the appeal filed by one of the unsecured creditors and remanded the case back to the BIFR for considering revival scheme through operating agency. BIFR vide its order dated October 11,2011 appointed IDBI bank as operating agency. IDBI has reviewed the Draft Rehabilitation Scheme (DRS) prepared by the Company and submitted the same to BIFR on February 16, 2012. The Company has revised the DRS with cut-off date as March 31,2013 and the same is under review with BIFR for approval.

The DRS envisages revival plan which is a multi faceted approach for improving the operational and financial strength of the Company.The management believes that DRS will further facilitate the revival and will have no adverse effects on the state of affairs of the company if approved as proposed.Consequential adjustments, if any, will be made in books of account upon approval of scheme by BIFR. Further, the Company has also completed its capacity expansion of Sulphuric Acid plant at Ankleshwar from 120TPDto 140TPD.In view of above developments, the accounts have been prepared on a going concern basis.

7. MICRO,SMALLAND MEDIUM ENTERPRISE DUES

Sundry creditors include Rs. Nil due to Micro, Small and Medium Enterprise. Following is the information, required to be furnished as per Section 22 of the Micro, Small and Medium Enterprise Development Act, 2006.

8. EMPLOYEE BENEFITS

(a) Defined contribution plans:

(i) Provident fund

(ii) State defined contribution plans

- Employers'' contribution to Employees'' state insurance

- Employers'' contribution to Employees'' Pension Scheme 1995

The provident fund and the state defined contribution plan are operated by the Regional Provident Fund Commissioner. Under the scheme, the company is required to contribute a specified percentage of payroll cost to the retirement benefit scheme to fund the benefits.These fundsare recognized by the income tax authorities.

The company has recognized the following amounts in the Statement of Profit and Loss for the year:

(b) Definad benefit plans: u

(i) Gratuity

(ii) Leave Encashment

The Gratuity Fund is maintained with the L1C of India under Group Gratuity Scheme.

Leave Encashment is payable to eligible employees who have earned leaves,during the employment and j or on separation as perthe Company''s policy.

Note: Since the Company had adopted AS -15 (Revised) - "Employee Benefits" for the first time during the financial year ended March 31,2011, hence the disclosure for gratuity and leave encashment figures as required by Para 120(n) have not been presented for thefinancial year priorto 2010-11.

9. In the opinion of the management, the Company is presently engaged in manufacturing of Speciality chemicals & others.The products included being related and not subject to different risks and returns, as per management''s contention, no separate reportable segment needs to be identified. And hence no separate segment information disclosure as per the requirement of AS 17 on Segment Reporting is applicable to the Company.

10. During the year, the Company has not entered into any transaction in nature of loans and advances which falls within the purview of clause 32 of listing agreement.


Mar 31, 2012

1. Corporate Information

AMAL Limited is a public company domiciled in India and incorporated on July 4, 1974 with the Registrar of Companies, Maharashtra under the provisions of the Companies Act, 1956. Its shares are listed on ASE and BSE. AMAL was incorporated under the name PIRAMAL Rasayan Limited on July 4, 1974. Its name was subsequently changed to AMAL Rasayan Limited by the said Registrar of Companies on November 10, 1986 and further to AMAL Products Limited on November 23, 1995 and further to its present name viz AMAL Limited on September 1 1, 2003. The Company is engaged in the manufacturing of Specialty Chemicals (Sulphuric Acid | Oleum).

2. Basis of preparation

These financial statements have been prepared on an accrual basis and under historical cost convention and in compliance, in all material aspects, with the applicable accounting principles in India, the applicable accounting standards notified under Section 211(3C) and the relevant provisions of the Companies Act, 1956. The significant accounting policies adopted by the Company are detailed below.

a) Terms rights attached to preference shares

The Company has only one class of 0% redeemable preference shares having a par value of Rs10 per share. These shares are redeemable over a period of 5 years starting from 2013-2014 as per the Draft Rehabilitation Scheme (DRS) submitted to BIFR. The scheme is subject to approval of BIFR.

b) Terms | rights attached to equity shares

The Company has only one class of equity shares having a par value of Rs10 per share. Each holder of equity shares is entitled to one vote per share. 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. In the event of liquidation of the Company, the holders of equity shares will be entitled to receive 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.

Note

1. The Company had reached a One Time Settlement with the secured creditors comprising of Corporate | Term loans availed from the banks and financial institutions under which the payments were made directly by the lender Company (Atul Limited) to them. By way of execution of deed of Assignment of debts owed by the Company, the lender Company has now acquired from these banks and financial institutions the debts and rights, title and interest in encumbrances, facility and underlying securities including inter alia comprised of movable and immovable properties that have been charged by the Company in favour of these banks and financial institutions pursuant to the original deed of hypothecation entered into by the Company. The entire dues | debts against the banks and financial institutions have been fully satisfied for which "No dues | debts certificates" have been obtained from them and the charges have been modified and stands in favour of the lender Company (Atul Limited) as Secured loans.

2. Terms of repayment of term loans:

a. Secured loan from Atul Limited shall be repaid in six yearly installments, five installments will be of Rs 200.00 lacs w.e.f FY 2016-17 and last sixth installment will be of Rs 128.89 lacs will be repaid in the FY 2021-22 as per the Draft Rehabilitation Scheme (DRS) submitted to BIFR. The scheme is subject to approval of BIFR.

b. Unsecured loan is repayable after March 31, 2013 upon terms and conditions which will be mutually decided between the Company and the lender.

3. CONTINGENT LIABILITIES

(Rs.in '000)

Particulars 2011-12 2010-11

Contingent liabilities not provided for in respect of

i. Sales tax matter under appeal 6,668 6,454

ii. Estimated amount of contract remaining to be executed on capital accounts and not provided for (net of advances) - 3,230

4. LEASE

The Company has taken land on lease at Atul from M/s. Atul Ltd. for 97 years from February 03, 1996 on annual lease rent of Rs 8,000/-.

5. GOING CONCERN

The Company was declared sick by Board of Industrial and Financial Reconstruction (BIFR) on July 20, 2006 and BIFR vide its order dated July 16, 2009 sanctioned the revival scheme for the Company which was further modified in June 2010. Relevant adjustments as required by the scheme including recasting of creditors had been carried out in books of account.

Subsequently, the Appellate Authority of Industrial and Financial Reconstruction (AAIFR) vide its order dated March 22, 201 1 allowed the appeal filed by one of the unsecured creditors and remanded the case back to the BIFR for considering revival scheme through operating agency. BIFR vide its order dated October 11, 2011 appointed IDBI bank as operating agency. IDBI has reviewed the Draft Rehabilitation Scheme (DRS) prepared by the Company and submitted the same to BIFR on February 16, 2012.

The DRS envisages revival plan which is a multi faceted approach for improving the operational and financial strength of the Company. The management believes that DRS will further facilitate the revival and will have no adverse effects on the state of affairs of the company if approved as proposed. Consequential adjustments, if any, will be made in books of account upon approval of scheme by BIFR. Further, the Company has also completed its capacity expansion of Sulphuric Acid plant at Ankleshwar from 120 TPD to 140 TPD. In view of above developments, the accounts have been prepared on a going concern basis.

6. EMPLOYEE BENEFITS

(A) Defined contribution plans:

a. Provident fund

b. State defined contribution plans

- Employers' contribution to Employees' State Insurance

- Employers' contribution to Employees' Pension Scheme, 1995

The provident fund and the state defined contribution plan are operated by the Regional Provident Fund Commissioner. Under the scheme, the Company is required to contribute a specified percentage of payroll cost to the retirement benefit scheme to fund the benefits. These funds are recognized by the income tax authorities.

Note: Since the Company had adopted AS - 15 (Revised) - "Employee Benefit" for the first time during the financial year ended March 31, 2011, hence the disclosure for gratuity and leave encashment figures as required by Para 120(n) have not been presented for the financial year prior to 2009-10.

7. In the opinion of the management, the Company is being presently engaged in manufacturing of Specialty chemicals & others. The product included being related and not subject to different risks and returns, as per management's contention, no separate reportable segment to be identified. And hence no separate segment information disclosure as per the requirement of AS 17 on Segment Reporting is applicable to the Company.

8. During the year, the Company has not entered into any transaction in nature of loans and advances which falls within the purview of Clause 32 of Listing Agreement.

 
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