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Notes to Accounts of Amrutanjan Health Care Ltd.

Mar 31, 2018

1 Reporting entity

Amrutanjan Health Care Limited (“AHCL” / “the Company”) was incorporated on 9 September 1936, with its registered office situated at Chennai, Tamil Nadu, India. The Company is engaged in the business of manufacture, supply, sale of products in pain management, congestion management and health care, beverages & hygiene and chemicals. The Company is a public limited company and is listed on the National Stock Exchange (NSE).

2 Basis of preparation

A. Statement of compliance

The Company’s financial statements have been prepared in accordance with Indian Accounting Standards (Ind AS) as per the Companies (Indian Accounting Standards) Rules, 2015 notified under section 133 of Companies Act, 2013, (the ‘Act’) and other relevant provisions of the Act.

The Company’s financial statements up to and for the year ended 31 March 2017 were prepared in accordance with the Companies (Accounting Standards) Rules, 2006, notified under Section 133 of the Act and other relevant provisions of the Act.

As this is the Company’s first financial statements prepared in accordance with Indian Accounting Standards (Ind AS), Ind AS 101, First-time Adoption of Indian Accounting Standards has been applied. An explanation of how the transition to Ind AS has affected the previously reported financial position and financial performance of the Company is provided in Note 41.

The financial statements were authorised for issue by the Company’s Board of Directors on 24 May 2018.

Details of the Company’s accounting policies are included in Note 3.

B. Functional and presentation currency

Items included in the financial statements of the Company are measured using the currency of the primary economic environment in which the Company operates (‘the functional currency’). The financial statements are presented in Indian Rupee (INR), which is Company’s functional and presentation currency.

All amounts disclosed in the financial statements and notes have been rounded off to the nearest Rupees in lakhs, unless otherwise stated.

C. Basis of measurement

The financial statements have been prepared on the historical cost basis except for the following items

D. Use of estimates and judgments

In preparing the financial statements, management has made judgments, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, income and expenses. Actual results may differ from these estimates.

Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised prospectively.

Assumptions and estimation uncertainties

Information about assumptions and estimation uncertainties that have a significant risk of resulting in a material adjustment is included in the following notes:

a) Note 3(E) - estimated useful life of property, plant and equipment and intangible assets

b) Note 20 - measurement of defined benefit obligations: key actuarial assumptions;

c) Note 21 and 37 - recognition and measurement of provisions and contingencies: key assumptions about the likelihood and magnitude of an outflow of resources;

d) Note 34 - recognition of deferred tax assets: availability of future taxable profit against which deferred tax assets will be recovered in future periods

e) Note 35 - impairment of financial assets

E. Measurement offair values

A number of the Company’s accounting policies and disclosures require the measurement of fair values, for both financial and non-financial assets and liabilities.

The Company has an established control framework with respect to the measurement of fair values. The Chief Financial Officer that has overall responsibility for overseeing all significant fair value measurements.

The Chief Financial Officer regularly reviews significant unobservable inputs and valuation adjustments. If third party information, such as broker quotes or pricing services, is used to measure fair values, then the Chief Financial Officer assesses the evidence obtained from the third parties to support the conclusion that these valuations meet the requirements of Ind AS, including the level in the fair value hierarchy in which the valuations should be classified.

Significant valuation issues are reported to the Company’s audit committee.

Fair values are categorised into different levels in a fair value hierarchy based on the inputs used in the valuation techniques as follows:

Level 1: quoted prices (unadjusted) in active markets for identical assets or liabilities.

Level 2: inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices).

Level 3: inputs for the asset or liability that are not based on observable market data (unobservable inputs).

When measuring the fair value of an asset or a liability, the Company uses observable market data as far as possible. If the inputs used to measure the fair value of an asset or a liability fall into different levels of the fair value hierarchy, then the fair value measurement is categorised in its entirety in the same level of the fair value hierarchy as the lowest level input that is significant to the entire measurement.

The Company recognises transfers between levels of the fair value hierarchy at the end of the reporting period during which the change has occurred.

Further information about the assumptions made in measuring fair values is included in Note 35 - financial instruments

b) Rights, preferences and restrictions attached to equity shares

The Company has only one class of shares referred to as equity shares having a par value of INR 2/-. Each holder of equity shares is entitled to one vote per share. In the event of liquidation of the Company, the holders of equity shares will be entitled to receive 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. The voting rights cannot be exercised in respect of shares on which any call or other sums presently payable has not been paid. Failure to pay any amount called up on shares may lead to their forfeiture.

On winding up of the company, the holders of equity shares will be entitled to receive the residual assets of the Company, remaining after distribution of all preferential amounts, in proportion to the equity shares held.

3 A. Other equity

a) Capital redemption reserve

The Company has recognised Capital redemption reserve on buyback of equity shares from its retained earnings. The amount in this reserve is equal to nominal amount of the equity shares bought back.

b) General reserve

The Company has transferred a portion of the net profit of the Company before declaring dividend to general reserve pursuant to the earlier provisions of Companies Act, 1956.

c) Retained earnings

Retained earnings are the profits that the Company has earned till date, less any transfers to general reserve, dividends or other distributions paid to shareholders.

4 Capital management

The Company’s policy is to maintain a strong capital base so as to maintain investor, creditor and market confidence and to sustain future development of the business. It sets the amount of capital required on the basis of annual business and long-term operating plans which include capital and other strategic investments. The funding requirements are met through equity, borrowings and cash generated through operations. The Company monitors capital using a ratio of ‘adjusted net debt’ to ‘adjusted equity’. For this purpose, adjusted net debt is defined as total liabilities, comprising interest-bearing loans and borrowings, provisions, financial liabilities, other current liabilities less cash and cash equivalents. Adjusted equity comprises all components of equity.

Nature of security and terms of repayment for borrowings

Interest was payable at 11.25% - 12.25% on this working capital demand loan from Yes bank. This loan was primarily secured by exclusive charge by hypothecation of the current assets of the company.

The Company operates the following post-employment defined benefit plans.

The Company has a defined benefit gratuity plan in India, governed by the Payment of Gratuity Act, 1972. The plan entitles an employee, who has rendered at least five years of continuous service, to gratuity at the rate of fifteen days wages for every completed year of service or part thereof in excess of six months, based on the rate of wages last drawn by the employee concerned.

These defined benefit plans expose the Company to actuarial risks, such as longevity risk, interest rate risk and market (investment) risk.

A. Funding

Plan is fully funded by the Company. The funding requirements are based on the gratuity fund’s actuarial measurement framework set out in the funding policies of the plan. The funding of plan is based on a separate actuarial valuation for funding purposes for which the assumptions may differ from the assumptions set out in (E). Employees do not contribute to the plan.

5 Discontinued operation

See accounting policy in Note 3(O)

During the current year, the Company has decided to discontinue the operations of its Chemical division. Management is committed to a plan to sell this segment during the following financial year.

The Chemical division was not previously disclosed as a discontinued operation. Accordingly, the results for the comparative periods in this Statement have been revised to exclude the operations of the Chemical division.

During the current year a new corporate tax rate is enacted in India for Companies having turnover of less than INR 25000 lakhs. Consequently, as of 1 April 2018, the corporate tax rate applicable for the Company is reduced from 34.61 percent to 29.12 percent. This has resulted in decrease of deferred tax assets of INR 78.16 lakhs as at 31 March 2018.

B. Financial risk management

The Company business activities are exposed to a variety of financial risks, namely credit risk, liquidity risk and market risk. The Company’s management has the overall responsibility for establishing and governing the Company risk management framework. The Company risk management policies are established to identify and analyse the risks faced by the Company, to set and monitor appropriate risk limits and controls, periodically review the changes in market conditions and reflect the changes in the policy accordingly. The key risks and mitigating actions are also placed before the audit committee of the Company.

i. Credit risk

Credit risk is the risk of financial loss to the company if a customer or counterparty to a financial instrument fails to meet its contractual obligations, and arises principally from Company’s trade receivables and other financial assets.

Trade receivables

The Company has developed guidelines for the management of credit risk from trade receivables. The Company’s exposure to credit risk is influenced mainly by the individual characteristics of each customer. The demographics of the customer, including the default risk of the industry and country in which the customer operates, also has an influence on credit risk assessment.

Credit risk is managed through credit approvals, establishing credit limits and monitoring the creditworthiness of customers to which the Company grants credit terms in the normal course of business. The Company establishes an allowance for doubtful debts that represents its estimate of incurred losses in respect of the Company’s trade receivables.

Exposures to customers outstanding at the end of each reporting period are reviewed by the Company to determine incurred and expected credit losses.

Other financial assets

This balance constitute of rental deposits given to lessors and Electricity deposit given to Tamil Nadu Electricity Board. The Company does not expect any losses from non-performance by these counter parties.

Other financial assets comprises of deposits with bank and financial institutions and interest accrued on such deposits. These deposits are held with credit worthy banks and financial institutions. The credit worthiness of such banks and financial institutions are evaluated by the management on an ongoing basis and is considered to be good with low credit risk.

Other financial assets also comprise of export benefits receivable and employee advances. The Company is confident of collection the amounts and is considered to good with low credit risk.

ii. Liquidity risks

Liquidity risk is the risk that the Company will face in meeting its obligations associated with its financial liabilities. The Company approach to managing liquidity is to ensure that it will have sufficient funds to meet its liabilities when due without incurring unacceptable losses. In doing this, management considers both normal and stressed conditions.

Cash flow from operating activities provides the funds to service and finance the financial liabilities on a day-to-day basis.

The Company regularly monitors the rolling forecasts to ensure it has sufficient cash on an on-going basis to meet operational needs. Any short term surplus cash generated, over and above the amount required for working capital management and other operational requirements, is retained as cash and cash equivalents (to the extent required) and any excess is invested in interest bearing term deposits and other highly marketable debt investments with appropriate maturities to optimise the cash returns on investments while ensuring sufficient liquidity to meet its liabilities.

The following table shows the maturity analysis of the Company’s financial liabilities based on contractually agreed undiscounted cash flows along with its carrying value as at the balance sheet date.

iii. Market risks

Market risk is the risk of loss of future earnings or fair values or future cash flows that may result from a change in the price of a financial instrument. The value of a financial instrument may change as a result of changes in the interest rates, foreign exchange rates and other market changes that affect market risk sensitive instruments. Market risk is attributable to all market risk sensitive financial instruments including foreign currency receivables and payables. The Company is exposed to market risk primarily related to foreign exchange rate risk (currency risk).

Currency risk

Foreign currency risk arise in USD denominated transactions mainly from export of OTC products and import of raw materials and packing materials that gives rise to exchange rate fluctuation risk.

Sensitivity analysis

A reasonably possible strengthening / (weakening) of the INR against US dollar at 31 March would have affected the measurement of financial instruments denominated in a foreign currency and affected equity and profit or loss by the amounts shown below. This analysis assumes that all other variables, in particular interest rates, remain constant and ignores any impact of forecast sales and purchases.

6 Operating Leases

(See accounting policy in Note 3(L))

Leases as lessee

The Company has leasing arrangements in respect of operating leases for offices, warehouses and vehicles. The period of these lease arrangements range between 12 months to 83 months and are usually renewable by mutual consent on agreed terms.

i. Future minimum lease payments

The lease arrangements entered into by the Company for offices and warehouses are cancellable with prior notice. The Company does not have any future minimum lease payments as at the balance sheet date.

i. Pending resolution of the respective proceedings, it is not practicable for the Company to estimate the timings of cash outflows, if any, in respect of the above as it is determinable only on receipt of judgements/decisions pending with various forums/authorities. The Company has reviewed all its pending litigations and proceedings and has adequately provided for where provisions are required and disclosed as contingent liabilities where applicable, in its financial statements. The Company does not expect the outcome of these proceedings to have a materially adverse effect on its financial position.

ii. Lease Rent in respect of lease hold land has been revised by the Government of Tamil Nadu with retrospective effect from November 2001. The company has contested the said revision before the Madras High Court in a writ petition.

7 Acquisition of its wholly owned subsidiary - Amrutanjan Pharmaessense Private Limited (APPL)

The Board of Directors of the Company, in their meeting held on 11 August 2016, approved the scheme of amalgamation of APPL with the Company. During the year, the Company had received the Court Order dated 13 July 2017 to effect such scheme. Pursuant to the requirements of IND AS 103 - Business Combinations, the Company has accounted this business combination involving entities under common control using the pooling of interest method in the books of account. Accordingly, the financial statement presented for prior periods have been restated as if the business combination had occurred from beginning of 1 April 2016.

Pursuant to the scheme, the following assets and liabilities have been taken over by the Company.

Accounting for assets and liabilities in the company

The equity share capital of APPL has been adjusted against the investments held by the Company. The amalgamation is in the nature of merger accordingly, neither goodwill nor capital reserve has arised against this transaction.

8 Operating segments A Basis for segmentation

An operating segment is a component of the Company that engages in business activities from which it may earn revenues and incur expenses, including revenues and expenses that relate to transactions with any of the Company’s other components and for which discrete financial information is available. All operating segments operating results are reviewed regularly by the Company’s chief operating decision-maker (CODM) to make decisions about resources to be allocated to the segments and assess their performance.

D Major customer

The Company is not reliant on revenues from transactions with any single external customer and does not receive 10% or more of its revenues from transactions with any single external customer.

9 Explanation of transition to Ind AS

As stated in Note 2A, these are the Company’s first financial statements prepared in accordance with Ind AS. For the year ended 31 March 2017, the Company had prepared its financial statements in accordance with Companies (Accounting Standards) Rules, 2006, notified under section 133 of the Act and other relevant provisions of the Act (‘previous GAAP’).

The accounting policies set out in Note 3 have been applied in preparing these financial statements for the year ended 31 March 2018 including the comparative information for the year ended 31 March 2017 and the opening Ind AS balance sheet on the date of transition i.e. 1 April 2016.

In preparing its Ind AS balance sheet as at 1 April 2016 and in presenting the comparative information for the year ended 31 March 2017, the Company has adjusted amounts reported previously in financial statements prepared in accordance with previous GAAP. This note explains the principal adjustments made by the Company in restating its financial statements prepared in accordance with previous GAAP, and how the transition from previous GAAP to Ind AS has affected the Company’s financial position, financial performance and cash flows.

Optional exemptions availed and mandatory exceptions

In preparing these financial statements, the Company has applied the below mentioned optional exemptions and mandatory exceptions.

A. Optional exemptions availed

1. Business combinations

As per Ind AS 101, at the date of transition, an entity may elect not to restate business combinations that occurred before the date of transition. If the entity restates any business combinations that occurred before the date of transition, then it restates all later business combinations.

The Company has opted to not to restate business combinations that occurred before the date of transition.

2. Property, plant and equipment & intangible assets

As per Ind AS 101 an entity may elect to:

(i) measure an item of property, plant and equipment at the date of transition at its fair value and use that fair value as its deemed cost at that date

(ii) use a previous GAAP revaluation of an item of property, plant and equipment at or before the date of transition as deemed cost at the date of the revaluation, provided the revaluation was, at the date of the revaluation, broadly comparable to:

- fair value;

- or cost or depreciated cost under Ind AS adjusted to reflect, for example, changes in a general or specific price index.

The elections under (i) and (ii) above are also available for intangible assets that meets the recognition criteria in Ind AS 38, Intangible Assets, (including reliable measurement of original cost); and criteria in Ind AS 38 for revaluation (including the existence of an active market).

(iii) use carrying values of property, plant and equipment, intangible assets and investment properties as on the date of transition to Ind AS (which are measured in accordance with previous GAAP and after making adjustments relating to decommissioning liabilities prescribed under Ind AS 101) if there has been no change in its functional currency on the date of transition.

As permitted by Ind AS 101, the Company has elected to continue with the carrying values under previous GAAP for all the items of property, plant and equipment. The same election has been made in respect of intangible assets also.

B. Mandatory exceptions

1. Estimates

As per Ind AS 101, an entity’s estimates in accordance with Ind AS at the date of transition to Ind AS at the end of the comparative period presented in the entity’s first Ind AS financial statements, as the case may be, should be consistent with estimates made for the same date in accordance with the previous GAAP unless there is objective evidence that those estimates were in error. However, the estimates should be adjusted to reflect any differences in accounting policies.

As per Ind AS 101, where application of Ind AS requires an entity to make certain estimates that were not required under previous GAAP, those estimates should be made to reflect conditions that existed at the date of transition (for preparing opening Ind AS balance sheet) or at the end of the comparative period (for presenting comparative information as per Ind AS).

The Company’s estimates under Ind AS are consistent with the above requirement. Key estimates considered in preparation of the financial statements that were not required under the previous GAAP are listed below:

- Fair valuation of financial instruments carried at FVTPL

- Impairment of financial assets based on the expected credit loss model.

2. Classification and measurement of financial assets

Ind AS 101 requires an entity to assess classification of financial assets on the basis of facts and circumstances existing as on the date of transition. Further, the standard permits measurement of financial assets accounted at amortised cost based on facts and circumstances existing at the date of transition if retrospective application is impracticable.

Accordingly, the Company has determined the classification of financial assets based on facts and circumstances that exist on the date of transition. Measurement of the financial assets accounted at amortised cost has been done retrospectively except where the same is impracticable.

Notes to the reconciliation A Restatement of provisions

Ind AS 101 permits a first time adopter to adjust accounting practices followed under previous GAAP if it becomes aware of an error as part of its Ind AS transition. Accordingly, on transition to Ind AS, the management has realigned accounting of such estimates based on the requirements of Ind AS 8. This has resulted in a reduction in equity by INR 290.86 on 01 April 2016.

B Excise duty

Under previous GAAP, revenue from sale of goods was presented net of the excise duty on sales. Under Ind AS, revenue from sale of goods is presented inclusive of excise duty. Excise duty is presented in the Statement of Profit and Loss as an expense. This has resulted in an increase in the revenue from operations and expenses for the year ended 31 March 2017. The total comprehensive income for the year ended and equity as at 31 March 2017 has remained unchanged.

C Remeasurement of defined benefit liability / (asset)

Under Ind AS, remeasurement of defined benefit liability / (asset) are recognised in other comprehensive income. Under previous GAAP the Company recognised such measurements in statement of profit or loss.

D Fair valuation of investments

In accordance with Ind AS, financial assets representing investment in debt and equity instruments have been fair valued. The Company has designated such investments classified as fair value through profit and loss as permitted by Ind AS 109. Under previous GAAP, the application of the relevant accounting standard resulted in all these investments being carried at cost.

E Loss allowance

On transition to Ind AS, the company has recognised impairment loss on trade receivables, based on expected credit loss model as required by Ind AS 109. Consequently, trade receivables have been reduced with a corresponding decrease in retained earnings on the date of transition and there has been an incremental provision for the year ended 31 March 2017.

F Stockist discount

Discounts given to stockist based on the Company’s scheme, which is presented as expense under previous GAAP is now classified as a reduction from revenue. This adjustment does not impact retained earnings.

G Income tax

Under Previous GAAP, deferred taxes were recognised for the tax effect of timing differences between accounting profit and taxable profit for the year using the income statement approach. Under Ind AS, deferred taxes are recognised using the balance sheet for future tax consequences of temporary differences between the carrying value of assets and liabilities and their respective tax bases. The above difference, together with the consequential tax impact of the other Ind AS transitional adjustments lead to temporary differences. The above changes (decreased)/ increased the deferred tax asset as followed based on applicable tax rates:

10 Disclosure on specified bank notes (SBNs)

During the previous year, the Company had specified bank notes (SBNs) and other denomination notes as defined in the MCA notification G.S.R. 308(E) dated 31 March 2017, on the details of Specified Bank Notes (SBNs) held and transacted during the period from 8 November 2016 to 30 December 2016, the denomination wise SBNs and other notes as per the notification is given below:

11 Micro and small enterprises

The Ministry of Micro, Small and Medium Enterprises has issued an office memorandum dated 28 August 2008 which recommends that the Micro and Small Enterprises should mention in their correspondence with its customers the Entrepreneurs Memorandum Number as allocated after filing of the Memorandum in accordance with the Micro, Small and Medium Enterprise Development Act, 2006 (‘the Act’). The disclosure in respect of the amounts payable to such enterprises as at 31 March 2018 has been made in the financial statements based on information received and available with the Company. Further in view of the Management, the impact of interest, if any, that may be payable in accordance with the provisions of the Act is not expected to be material. The Company has not received any claim for interest from any supplier as at the balance sheet date.

12 Subsequentevents

The shareholders of the Company have approved the sub-division of 14,615,315 equity shares having a face value of INR 2 each into 29,230,630 equity shares having a face value of INR 1 each through postal ballot. The record date for the sub-division was April 16, 2018. The earnings per share information in the financial statement reflect the effect of sub-division for each of the years presented. Refer note 18.

13 Previous year comparitives

Previous years financial statements have been audited by a firm other than B S R & Co. LLP.


Mar 31, 2016

1. The amount due from Amrutanjan Pharmaessense Private Limited, a wholly owned subsidiary company includes Rs. 15,38,66,291/representing the net value of relevant assets and liabilities transferred on 16th May 2011. In the opinion of the management, the said amount will be realized overa period of time taking into account the business opportunities of the said company.

2. The Company’s significant leasing arrangements are in respect of operation leases for premises. These leasing arrangements are not non-cancellable and are usually renewable by mutual consent on mutually agreeable terms. The aggregate lease rentals payable are charged as Rent in the profit and loss account, (refer note .26)

The company has also given certain land and building on operating lease. The rental income on such lease is included in rental receipt (refer note. 21)

b) Gratuity is administered through Group gratuity scheme with Life Insurance Corporation of India. The expected return on plan assets is based on market expectation at the beginning of the year, for the returns over the entire life of the related obligation.

Leave Salary

The defined benefit obligations which are provided for but not funded as on 31-03-2016 isRs. 51,96,213 (Rs. 40,10,841).

3. Previous Year Figures

Previous year figures have been regrouped wherever necessary to comply with current year’s classification.


Mar 31, 2015

1. BACKGROUND

Amrutanjan Health Care Limited was established in the year 1893 and specializing in Ayurvedic balm for headaches, cold and cough. The Company is a public limited company and is listed on the Bombay Stock Exchange(BSE) and the National Stock Exchange (NSE).

2. Monies for which the company is contingently liable :

a. Bonds executed in favour of Collector of Central Excise, Chennai - Rs. 8,00,000/- ( Rs. 8,00,000)

b. Guarantees/Letter of Credit issued on behalf of Company by Banks - Rs. 2,55,44,251/- (Rs. 2,27,73,781/-) and Corporate guarantee given to banks for credit facilities availed by subsidiary company - Rs. 2,50,00,000/- (Rs. 2,50,00,000/-)

c. Appeals filed in respect of disputed demands :

2014-15 2013-14

Excise Duty 61,62,430 61,62,430

E S I 3,96,545 3,96,545

Service Tax 2,23,52,480 2,31,22,929

Income Tax 1,21,36,664 1,21,36,664

Includes Rs. 51,04,396/- paid under protest.

d. Lease Rent in respect of lease hold land has been revised by the Government of Tamil Nadu with retrospective effect from November 2001 and the arrears on this account up to 31st March 2015 is Rs. 7,01,39,899/-. The company has contested the said revision before the Madras High Court in a writ petition. The company has made provision of Rs. 8,50,600 towards the above.

e. Claims against the company not acknowledged as debts : Rs. 2,68,85,143/- (Rs. 1,88,31,161/-)

f. Balances with excise authorities include a sum of Rs. 79,45,555/- being input credit taken on services which is yet to be adjusted in payment of excise duty in view of decision pending with concerned authorities on this matter in earlier years

3. Estimated amount of capital expenditure commitments Rs. 5,00,00,000/- ( Rs. 5,00,00,000)

4. a. The Company has transferred Rs. 3,28,148/- (Rs. 3,52,691/-) of unclaimed dividend to Investor Education and Protection Fund during the year.

b. Unclaimed Dividend amounting to Rs. 22,785 (Rs. 27,034/-) is pending on account on litigation among claimants.

5. The company has spent Rs. 17,00,000 towards CSR expenditure for such activities specified in Schedule VII of Companies Act,2013.Since the company is in the process of identifying further projects for CSR, amount of Rs. 9,58,557 remains unspent for the financial year.

6. Related Party Disclosures

(i) List of related parties and relationships :

a) Parties where control exists - Nil

b) Key Management Personnel :

Sri S. Sambhu Prasad, Chairman & Managing Director

7. The amount due from Amrutanjan Pharmaessense Private Limited, a wholly owned subsidiary company includes Rs. 15,38,66,291/- representing the net value of relevant assets and liabilities transferred on 16th May 2011. In the opinion of the management, the said amount will be realized over a period of time taking into account the business opportunities of the said company.

8. The Company's significant leasing arrangements are in respect of operation leases for premises. These leasing arrangements are not non-cancellable and are usually renewable by mutual consent on mutually agreeable terms. The aggregate lease rentals payable are charged as Rent in the profit and loss account. (refer note .27)

The company has also given certain land and building on operating lease. The rental income on such lease is included in rental receipt (refer note. 22)

9. Previous Year Figures

Previous year figures have been regrouped wherever necessary to comply with current year's classification.


Mar 31, 2014

BACKGROUND

Amrutanjan Health Care Limited was established in the year 1893 and specializing in Ayurvedic balm for headaches, cold / cough and beverage under the brand name of ''Fruitnik'' . The Company is a public limited company and is listed on the Madras Stock Exchange.

1. a. The Company has transferred 3,52,691/- (Rs. 1,51,901/-) of unclaimed dividend to Investor Education and Protection Fund during the year.

b. Unclaimed Dividend amounting to Rs. 27,034/- (Rs. 19,677/-) is pending on account on litigation among claimants.

2. Sundry Deposits represent Fixed Deposit with Dewan Housing Finance Corporation Limited renewed during the year.

3. The amount due from Amrutanjan Pharmaessense Private Limited, a wholly owned subsidiary company includes Rs. 15,38,66,291/- representing the net value of relevant assets and liabilities transferred on 16th May 2011. In the opinion of the management, the said amount will be realized over a period of time taking into account the business opportunities of the said company.

4. The Company'' s significant leasing arrangements are in respect of operates leases for premises. These leasing arrangements are not non-cancellable and are usually renewable by mutual consent on mutually agreeable terms. The aggregate lease rentals payable are charged as Rent in the profit and loss account.

The company has also given certain land and building on operating lease. The rental income on such lease is included in rental receipt.

5. Previous Year Figures

Previous year figures have been regrouped wherever necessary to comply with current year s classification.


Mar 31, 2013

1. BACKGROUND

Amrutanjan Health Care Limited was established in the year 1893 specializing in Ayurvedic balm for headaches, cold & cough and made a foray into Beverage division under the brand name of ''Fruitnik''. The Company is a public limited company and is listed on the Madras Stock Exchange and the National Stock Exchange (NSE).

2. Monies for which the company is contingently liable:

a. Bonds executed in favour of Collector of Central Excise, Chennai- Rs. 8,00,000/- (Rs. 8,00,000)

b. Guarantees/LetterofCreditissuedonbehalfofCompanybyBanks- Rs.2,07,39,605/- (Rs.2,11,19,251/-)

c. Contingent Liability in respect of Income Tax Rs. 20,43,194/- (Rs. 20,43,194/-). However, the said amount has been paid under protest.

e. Lease Rent in respect of lease hold land has been revised by the Government of Tamil Nadu with retrospective effect from November 2001 and the arrears on this account up to 31st March 2013 isRs. 5,64,71,594/-. The company has contested the said revision before the Madras High Court in a writ petition and pending resolution of the proceedings, it is not practicable either to estimate the liability nor the timing of the cash outflows.

f. Claims against the company not acknowledged as debts: Rs. 1,88,31,161/- (Rs.. 1,88,31,161/-)

3. Estimated amount of capital expenditure commitments Rs. 3,00,00,000/- (Rs. 3,00,00,000)

4. a. The Company has transferred Rs. 1,51,901/- (Rs. 1,87,787/-) of unclaimed dividend to Investor Education and Protection Fund during the year.

b. Unclaimed Dividend amounting to Rs. 19,6771- (Rs. 15,689/-) is pending on account on litigation among claimants.

5. Sundry Deposits represent Fixed Deposit with Dewan Housing Finance Corporation Limited renewed during the year.

6. Siva''s Soft Drink Private Limited (transferor company) manufacturers of fruit juices has been amalgamated with Amrutanjan Health Care Limited (transferee company) manufacturers of pain balm products, with effect from 1 st April, 2011 in terms of the scheme of the amalgamation sanctioned by the High Court Of Judicature at Madras as per the order dated 29.01.2013.

The amalgamation has been accounted for under the "pooling of interest" method as prescribed by AS 14 notified under section 211 (3C) of the Companies Act 1956. Accordingly the assets and liabilities of Siva''s Soft Drink Private Limited as at April 1,2011 ,has been taken over at their book values. The balance lying in the statement of profit and loss has been transferred to the surplus in the statement of profit and loss account of the company.

Since the subsidiary company, amalgamated as aforesaid was wholly owned by the company, no shares were exchanged to effect the amalgamation.

The difference between the amount recorded as investments of the Company and the amount of share capital of Siva''s Soft Drink Private Limited has been adjusted in the General Reserve.

7. Related Party Disclosures

(i) List of related parties and relationships :

a) Parties where control exists - subsidiaries Amrutanjan Pharmaessense Private Limited

b) Key Management Personnel:

Sri S. Sambhu Prasad, Chairman & Managing Director

c) Relative to Key Management Personnel:

Mrs. Rajeswari ,S-Mother

8. The amount due from Amrutanjan Pharmaessense Private Limited, a wholly owned subsidiary company includes X 15,38,66,291 /- representing the net value of relevant assets and liabilities transferred on 16th May 2011. In the opinion of the management, the said amount will be realized over a period of time taking into account the business opportunities of the said company.

9. The Company''s significant leasing arrangements are in respect of operation leases for premises. These leasing arrangements are not non-cancellable and are usually renewable by mutual consent on mutually agreeable terms. The aggregate lease rentals payable are charged as Rent in the profit and loss account, (refer note .29)

The company has also given certain land and building on operating lease. The rental income on such lease is included in rental receipt (refer note. 24)

10. Previous Year Figures

Previous year figures have been regrouped wherever necessary to comply with current year''s classification.


Mar 31, 2012

1. BACKGROUND

Amrutanjan Health Care Limited was established in the year 1893, specializing in Ayurvedic balm for headaches, cold and cough. The Company is a Public Limited Company and is listed on the Madras Stock Exchange.

Terms/ Rights I restrictions attached to shares:

The Company has only one type of equity shares. Every shareholder is entitled to one vote per share.

Buy Back of Shares:

The Company bought back 1,06,937 fully paid up equity shares of Rs. 10/- each, at a price of Rs. 900/- per share payable in cash, for an aggregate amount not exceeding ofRs. 9,62,43,300 from the open market through tender offer method.

Term Loan referred above to the extent of: -

a) Rs. 4,50,00,000 (Rs. 3,34,20,800) repayable in ten equal half yearly installments with interest @ 11.50%. The repayment will be complete in February, 2016.

b) Rs. 1,46,44,250 (nil) repayable in ten equal half yearly installments with interest @ 11.80%. The repayment will be complete in February, 2016.

Term Loans are secured by way of hypothecation of specific plant & machinery, specific investments in mutual funds and current assets of the company, both present and future, ranking pari passu.

* represents investments I advances in Data Quest Infotech & Enterprises Ltd written off, since the said company has been struck off u/s 560 (5) of Companies Act, 1956 during the year

2. Monies for which the company is contingently liable :

a. Bonds executed in favour of Collector of Central Excise, Chennai - Rs. 8,00,000/- (Rs. 8,00,000)

b. Guarantees/Letter of Credit issued on behalf of Company by Banks 2,11,19,251/- (Rs. 2,25,34,291/-)

c. Contingent Liability in respect of Income Tax Rs. 20,43,194/- (Rs. 20,43,194/-). However, the said amount has been paid under protest.

e. Lease Rent in respect of iease hold land has been revised by the Government of Tamil Nadu with retrospective effect from November 2001 and the arrears on this account up to 31st March 2012 is Rs. 5,04,32,834/-. The company has contested the said revision before the Madras High Court in a writ petition and pending resolution of the proceedings, it is not practicable either to estimate the liability nor the timing of the cash outflows.

f. Claims against the Company not acknowledged as debts : Rs. 1,88,31,161/- (1,33,03,607/-)

3. Estimated amount of capital expenditure commitments Rs. 3,00,00,000/- (Rs. 4,00,00,000)

4. (a) The Company has transferred Rs.1,87,787/- (Rs. 2,55,014/-) of unclaimed dividend to Investor Education and Protection Fund during the year.

(b) Unclaimed Dividend amounting to Rs. 15,689 (Rs. 9,549/-) is pending on account on litigation among claimants.

5. Siva's Soft Drink Private Limited, a wholly owned subsidiary of the Company has on 25th April, 2012 filed an application for amalgamation with the Company with the Hon'ble High Court of Madras. The Scheme shall be given effect to in the Book with effect from the Appointed Date of 1st April, 2011, upon the receipt of the necessary approvals.

6. Related Party Disclosures

i) List of related parties and relationships :

a) Parties where control exists - subsidiaries

Holistic Beauty Care Limited

Siva's Soft Drink Pvt Ltd

Amrutanjan Pharmaessense Private Limited

b) Key Management Personnel:

Sri S. Sambhu Prasad, Chairman & Managing Director

c) Relative to Key Management Personnel:

Mrs. Rajeswari S - Mother

7. The Company has transferred the relevant assets and liabilities of the Pharmaessense Chemistry Services Division at the book values (as per the resolution passed by the shareholders vide postal ballot on 23rd Mar 2011) to Amrutanjan Pharmaessense Private Ltd (APPL), a wholly owned subsidiary company with effect from 16th May 2011. The net amount aggregating to Rs. 15,38,66,291/- after adjustment ofRs. 5,00,000/- in the form of investment in shares in APPL is due to the company as on 31st March 2012. In the opinion of the management, the said amount will be realized over a period of time taking into account the business opportunities of the said company. The financial results of the said division after the effective date do not form part of the financial results for the year ended 31st March 2012 and hence not comparable with the financial results for the year ended 31st March 2011.

8. Amount of Rs. 1,46,84,032/- (including Rs. 1,25,00,000 transferred from contingency reserve) has been provided for the value of investments / advances in Holistic Beauty Care Ltd., since the said company has discontinued the business operations.

9. The Company's significant leasing arrangements are in respect of operation leases for premises. These leasing arrangements are not non-cancellable and are usualiy renewable by mutual consent on mutually agreeable terms. The aggregate lease rentals payable are charged as Rent in the profit and loss account, (refer note 29)

The company has also given certain land and building on operating lease. The rental income on such lease is included in rental receipt (refer note. 24)

b) Gratuity is administered through Group gratuity scheme with Life Insurance Corporation of India. The expected return on plan assets is based on market expectation at the beginning of the year, for the returns over the entire life of the related obligation

Leave Salary

The defined benefit obligations which are provided for but not funded as on 31-3-2012 is Rs. 50,46,278/- (Rs. 26,13,715)

10. Previous Year Figures

The financial statements for the year ended March 31,2011 had been prepared as per the then applicable, pre-revised Schedule VI to the Companies Act, 1956. Consequent to the notification of Revised Schedule VI under the Companies Act, 1956, the financial statements for the year ended March 31,2012 are prepared as per Revised Schedule VI. Accordingly, the previous year figures have also been reclassified to confirm to this year's classification. The adoption of Revised Schedule VI for previous year figures does not impact recognition and measurement principles followed for preparation of financial statements.


Mar 31, 2011

1 Monies for which the company is contingently liable:

a Bonds executed in favour of Collector of Central Excise, Chennai - Rs.8,00,000/- ( Rs.8,00,000 /-)

b Guarantees/Letter of Credit issued on behalf of the Company by Banks -Rs. 2,25,34,291/- (Rs. 1,18,25,000/-)

c Contingent liability in respect of Income Tax Rs. 20,43,194/- (Rs. 20,43,194/-). However, the said amount has been paid under protest.

e Claims against the company not acknowledged as debts - Rs.1,33,03,607/- (nil)

2 Lease rent in respect of leasehold land has been revised by the Government of Tamilnadu with retrospective effect from November 2001 and the arrears on this account upto 31st March 2011 is Rs. 3,72,31,466. Since the enhancement of the rent is exhorbitant, the Company has contested the said revision before the appropriate forum. The matter is also pending before The Madras High Court in a writ petition. Based on the legal advice, the Company is hopeful of a favourable decision and hence no provision for the said liability is considered.

3 Estimated amount of capital expenditure commitments Rs. 4,00,00,000/- (Rs. 9,79,00,000/-)

4 Sundry Deposits represent Fixed Deposit with Shriram Transport Finance Company Limited and Dewan Housing Finance Corporation Limited made during the year for a period of 12 months.

5 a The Company has transferred Rs. 2,55,014 /- (Rs.83,034/-) of unclaimed dividends to Investor Education and Protection Fund during the year.

b Unclaimed Dividend amounting to Rs.9,549/- (Rs.9,549/-) is pending on account on litigation among claimants.

6 The Company has made investments and granted advances to Holistic Beauty Care Limited aggregating to Rs.1,46,29,026/-.

The Company has incurred significant setup cost leading to losses and exploring new business alternatives. However, as a matter of prudence contingency reserve of Rs. 1,25,00,000/- has been created for any possible erosion in the value of investments / advances.

7 Provision for Taxation includes Rs.50,000 (Rs. 50,000/-) towards Wealth Tax.

8. Segment Information

The Company has disclosed business segment as the primary segment and is organised in to two main business segments namely OTC products and Chemicals

The Company caters mainly to the needs of the domestic market and as such there are no reportable geographical segments. Segment Revenue, Segment Results, Segment Assets and Segment Liabilities include the respective amounts identifiable to each of the segments as also amounts allocated on a reasonable basis. Other unallocable expenditure includes revenues and expenses which are not directly identifiable to the individual segments as well as expenses which relate to the Company as a whole.

9 Disclosure of Related Parties

(I) List of related parties and relationships:

a) Parties where control exists - Subsidiaries : Data Quest Infotech and Enterprises Limited

Holistic Beauty Care Limited

Siva's Soft Drink Pvt Ltd

b) Key Management Personnel : Sri. S.Sambhu Prasad, Managing Director

(c) Relatives of Key Management Personnel : Mrs. Rajeswari.S-Mother

10 The company has made investment in 100% of Equity Shares in Siva's Soft Drink Private Limited in February - 2011 for a consideration of Rs.25,70,00,000/-, out of which amount of Rs.96,20,000/-payable as on 31st March 2011 to the erstwhile share holders is included under Other Liabilities in Schedule -11.

11 Employee Benefits

b Gratuity is administered through Group gratuity scheme with Life Insurance Corporation of India. The expected return on plan assets is based on market expectation at the beginning of the year, for the returns over the entire life of the related obligation

Leave Salary

The defined benefit obligations which are provided for but not funded as on 31-3-2011 is Rs. 26,13,715/- (Rs. 27,68,901/-)

12 Previous year's figures have been regrouped wherever necessary to comply with current year's classification.


Mar 31, 2010

1. MONIES FOR WHICH THE COMPANY IS CONTINGENTLY LIABLE :

a. Bonds executed in favour of Collector of Central Excise, Chennai-Rs.8,00,000/- (Rs.8,00,000/-)

b. Guarantees/Letter of Credit issued on behalf of the Company by Banks - Rs.1,18,25,000/- (Rs.1,55,00,146/-)

c. Contingent liability in respect of Income Tax Rs.20,43,194/- (Rs.16,04,113/-). However, the said amount has been paid under protest.

2. Lease rent in respect of leasehold land has been revised by the Government of Tamil Nadu with restrospective effect from November, 2001 and the arrears on this account upto 31st March, 2010 is Rs.3,32,77,682/- Since the enhancement of the rent is exhorbitant, the Company has contested the said revision before the appropriate forum. The matter is also pending before The Madras High Court in a writ petition. Based on the legal advice, the Company is hopeful of a favourable decision and hence no provision for the said liability is considered in this year.

3. Estimated amount of capital expenditure commitments Rs.9,79,00,000/- (Rs.6,35,00,000/-)

4. Amount of Rs.22,55,236/- (Rs.32,87,971/-) has been provided for advances given to subsidiary companies since the said companies are not continuing the business operations.

5. a. The Company has transferred Rs.83,034/- (Rs. 1,30,579/-) of unclaimed dividends and Rs.nil /- (Rs.48,000/-) of unclaimed matured deposits to Investor Education and Protection Fund during the year.

b. Unclaimed Dividend amounting to Rs.0.09 lakhs (31.03.2009 Rs.0.11 lakhs) is pending on account on litigation among claimants.

Notes : Loans and Advances in the nature of loans shown above are without any repayment schedule.

6. The company has made investments and granted advances to Holistic Beauty Care Limited aggregating to Rs.1,15,01,838/- The business activities of the said company are in a development phase only and has incurred significant setup cost leading to losses. Though the future business plans are hopeful, as a matter prudence, contingency reserve of Rs.100 lakhs has been created for any possible erosion in the value of investments / advances.

7. Provision for Taxation includes Rs.50,000/- (Rs.50,000/-) towards Wealth Tax.

8. Disclosure of Related Parties

(I) List of related parties and relationships :

(a) Parties where control exists - Subsidiaries : Data Quest Infotech and Enterprises Limited

Holistic Beauty Care Limited

(b) Key Management Personnel : Mr. S. Sambhu Prasad, Managing Director

(c) Relatives of Key Management Personnel: Mrs. S. Rajeswari - Mother

9. During the year the Company has bought back 71,660 Equity shares of Rs.10/- each at an average price of Rs.405.19 and accordingly.

(a) An amount of Rs.7,16,600/- has been reduced from the paid-up equity share capital.

(b) The balance of Rs.395.19 per share paid on these shares aggregating to Rs.283.19 lakhs has been adjusted to General Reserve.

(c) As required under the provisions of the Companies Act, 1956 Rs.7,16,600/- has been transferred to Capital Redemption Reserve from General Reserve.

The buy back of equity shares was completed on 3rd April, 2009.

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