Mar 31, 2018
1(a) General information
Anuh Pharma Limited (âthe Companyâ) is engaged in the business of manufacturing and selling of âBulk drugs and chemicalsâ .
The company is a public limited company incorporated and domiciled in India and has its registered office at 3-A, Shivsagar Estate, North Wing, Dr. Annie Besant Road, Worli, Mumbai- 400018, Maharashtra, India.
2.1 Office Premises includes value of shares of a co-operative society.
2.2 Some of the Motor Vehicles are held in the name of the Director of the Company.
2.3 From April 1, 2014, Depreciation on Tangible Fixed Assets is provided on pro-rata basis on the written down value method over the useful lives of assets as prescribed in Part C of Schedule II of the Companies Act, 2013. The Management of the Company estimates the useful lives and residual value for the following assets, based on independent technical evaluation, which is different from the useful lives and residual values as per Part C of Schedule II of the Companies Act, 2013, as under:
3.1 The company has only one class of Equity Shares having a par value of Rs. 5 per share. Each holder of equity share 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 approval of the shareholders in the ensuing Annual General Meeting.
3.2 The shareholders of the Company had approved the sub-division of Equity Shares of the Company having nominal/face value of Rs. 10 each into Equity Shares having nominal/face value of Rs. 5 each at the Extraordinary General Meeting (âEGMâ) held on June 9, 2006.
Consequently, the Authorised, Issued and Paid-up Share Capital were divided from Rs. 10 per Equity share to Rs. 5 per Equity Share.
NOTE NO. 4
First - time adoption of Ind AS
I. Transition to Ind AS
These are the companyâs first financial statements prepared in accordance with Ind AS.
The accounting policies set out in note 1(b) have been applied in preparing the financial statements for the year ended 31 March 2018, the comparative information presented in these financial statements for the year ended 31 March 2017 and in the presentation of an opening Ind AS balance sheet at 1 April 2016 (the Companyâs date of transition). In preparing its opening Ind AS balance sheet, the Company has adjusted the amount reported previously in financial statements prepared in accordance with the accounting standards notified under Companies (Accounting Standards) Rules, 2006 (as amended) and other relevant provisions of the Act (previous GAAP or Indian GAAP). An explanation of how the transition from previous GAAP to Ind AS has affected the companyâs financial position and financial performance is set out in the following tables and notes.
II. Exemptions from retrospective application
Ind AS 101 allows first-time adopters certain exemptions from the retrospective application of certain requirements under Ind AS. The Company has applied the following exemptions:
Deemed cost for Property, Plant and Equipment (PPE) and Intangible assets
Ind AS 101 permits a first time adopters to continue with the carrying value for all its property, plant and equipment and intangible assets as recognised in the financial statements as at the date of transition to Ind AS, measured as per the previous GAAP and use that as its deemed cost as at the date of transition.
Accordingly, the company has elected to measure all of its PPE and intangible asset at their previous GAAP carrying values.
The remaining voluntary exemptions as per Ind AS 101 - First time adoption either do not apply or are not relevant to the Company.
III. Exceptions from full retrospective application:
a) Estimates
Upon an assessment of the estimates made under Indian GAAP the Company has concluded that there was no necessity to revise such estimates under Ind AS, except where estimates were required by Ind AS and not required by Indian GAAP
The company made estimate for following items in accrodance with Ind AS at the date of transition as these were not required under previous GAAP:
Investment in Mutual Fund instruments carried at FVTPL.
b) Classification and measurement of financial assets
The Company has classified and measured the financial assets on the basis of facts and circumstances that exist at the date of transition to Ind AS.
The remaining mandatory exceptions either do not apply or are not relevant to the Company.
(f) Reconciliation of statement of Cash Flow;
There are no material adjustments to the statement of cash flow as reported under previous GAAP
(g) Notes to the reconciliation:
1 Fair valuation of investments in mutual funds
Under previous GAAP invesments in mutual funds were classified as long term investments or current investments based on the intended holding period and realisability. Current investments were measured at lower of cost or market price as of each reporting date while long term investments were measured at cost reduced for dimunition. Under Ind AS, these invesments are required to be measured at fair value. The resulting fair value changes of these investments have been recognised in retained earnings as at the date of transition and subsequently in the profit or loss for the year ended 31 March 2017.
2 Proposed dividend
Under Indian GAAP proposed dividends are recognised as a liability in the period to which they relate, irrespective of when they are declared. Under Ind-AS, a proposed dividend is recognised as a liability in the period in which it is declared by the company (usually when approved by shareholders in a general meeting) or paid. In the case of the Company, the declaration of dividend occurs after transition date. Therefore, the liability recorded for this dividend has been derecognised against retained earnings.
3 Remeasurement of post employment benefit obligation
Under Ind AS, remeasurements i.e. acturial gains and losses and the return on plan assets, excluding amounts included in the net interest expense on the net defined benefit liability are recognised in other comprehensive income (net of deferred tax) instead of profit and loss under the previous GAAP
The company offsets tax assets and liabilities if and only if it has a legally enforceable right to set off current tax assets and current tax liabilities and the deferred tax assets and deferred tax liabilities relate to income taxes levied by the same tax authority.
Significant management judgement is required in determining provision for income tax, deferred income tax assets and liabilities and recoverability of deferred income tax assets. The recoverability of deferred income tax assets is based on estimates of taxable income in which the relevant entity operates and the period over which deferred income tax assets will be recovered.
B. Measurement of fair values
Ind AS 107, âFinancial Instrument - Disclosureâ requires classification of the valuation method of financial instruments measured at fair value in the Balance Sheet, using a three level fair-value-hierarchy (which reflects the significance of inputs used in the measurements). The hierarchy gives the highest priority to un-adjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and lowest priority to un-observable inputs (Level 3 measurements). Fair value of derivative financial assets and liabilities are estimated by discounting expected future contractual cash flows using prevailing market interest rate curves. The three levels of the fair-value-hierarchy under Ind AS 107 are described below:
Level 1: Level 1 Heirarchy includes financial instruments measured using quoted prices.
Level 2: The fair value of financial instruments that are not traded in an active market are determined using valuation techniques which maximise the use of observable market data and rely as little as possible on entity specific estimates. If all significant inputs required to fair value an instrument are observable, the instrument is included in level 2.
Level 3: If one or more of the significant inputs are not based on observable market data, the instrument is included in level 3. e.g. unlisted equity securities.
Transfers between Levels
There have been no transfers between Levels during the reporting periods
The following tables show the valuation techniques used in measuring Level 2 and Level 3 fair values, as well as the significant unobservable inputs used.
Financial instruments measured at fair value
There are no transfers betweeen the levels
C. Financial risk management
The Company has exposure to the following risks arising from financial instruments:
- Credit risk;
- Liquidity risk; and
- Market risk
i. Risk management framework
The Companyâs board of directors has overall responsibility for the establishment and oversight of the Company risk management framework. The board of directors is responsible for developing and monitoring the Company risk management policies.
The Companyâs risk management policies are established to identify and analyse the risks faced by the Company, to set appropriate risk limits and controls and to monitor risks and adherence to limits. Risk management policies and systems are reviewed regularly to reflect changes in market conditions and the Companyâs activities. The Company, through its training and management standards and procedures, aims to maintain a disciplined and constructive control environment in which all employees understand their roles and obligations.
The audit committee oversees how management monitors compliance with the companyâs risk management policies and procedures, and reviews the adequacy of the risk management framework in relation to the risks faced by the Company. The audit committee is assisted in its oversight role by internal audit. Internal audit undertakes both regular and adhoc reviews of risk management controls and procedures, the results of which are reported to the audit committee.
ii. 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 the Companyâs receivables from customers and investments in debt securities, cash and cash equivalents, mutual funds, bonds etc.
The carrying amount of financial assets represents the maximum credit exposure.
Trade and other receivables
Around 45% of the sales are export sales. For major part of the sales, customer credit risk is managed by requiring domestic and export customers to pay advances before transfer of ownership, therefore substantially eliminating the Companyâs credit risk in this respect.
Based on prior experience and an assessment of the current economic environment, management believes that no provision is required for credit risk wherever credit is extended to customers.
Impairment
The ageing of trade and other receivables that were not impaired was as follows:
Management believes that the unimpaired amounts that are past due by more than 6 months are still collectible in full, based on historical payment behaviour.
Concentration of credit risk
At 31st March 2018, the carrying amount of the Companyâs most significant customer is Rs. 2,574 lakhs (31st March, 2017 : Rs. 2,489 lakhs; 1st April, 2016 : Rs. 2,665 lakhs)
Loan to others
The credit worthiness of the counter party is evaluated by the management on an ongoing basis and is considered to be good. The Company did not have any amounts that were past due but not impaired. The Company has no collateral in respect of these loans.
Investment in mutual funds and bonds
The investment in mutual funds, Government bonds are entered into with credit worthy fund houses, Government of India and financial institution respectively. The credit worthiness of these counter parties are evaluated by the management on an ongoing basis and is considered to be good. The Company does not expect any losses from non-performance by these counter-parties.
Cash and cash equivalents
Credit risk from balances with banks is managed by the Companyâs treasury department in accordance with the companyâs policy. Investment of surplus funds are made in mainly in mutual funds with good returns and within approved credit ratings.
Other than trade and other receivables, the Company has no other financial assets that are past due but not impaired.
iii. Liquidity risk
Liquidity risk is the risk that the Company will not be able to meet its financial obligations as they become due. The Company manages its liquidity risk by ensuring, as far as possible, that it will always have sufficient liquidity to meet its liabilities when due, under both normal and stressed conditions, without incurring unacceptable losses or risk to the Companyâs reputation. The Company has obtained fund and non-fund based working capital lines from two banks. The Company also constantly monitors funding options available in the debt and capital markets with a view to maintaining financial flexibility.
As at 31st March, 2018, the Company had working capital of Rs. 9554.66 lakhs, including cash and cash equivalents of Rs. 379.91 lakhs and highly marketable current investments of Rs. 3556.50 lakhs. As at 31st March, 2017, the Company had working capital of Rs. 9054.52 lakhs, including cash and cash equivalents of Rs. 520.30 lakhs and highly marketable current investments of Rs. 3925.95 lakhs. As at 1st April, 2016 the Company had working capital of Rs. 8013.95 lakhs, including cash and cash equivalents of Rs. 305.25 lakhs and highly marketable current investments of Rs. 2200.54 lakhs.
Exposure to liquidity risk
The table below analyses the Companyâs financial liabilities into relevant maturity groupings based on their contractual maturities :
iv. Market risk
Market risk is the risk of loss of future earnings, fair values or future cash flows that may result from adverse changes in market rates and prices (such as interest rates, foreign currency exchange rates) or in the price of market risk-sensitive instruments as a result of such adverse changes in market rates and prices. Market risk is attributable to all market risk-sensitive financial instruments, all foreign currency receivables and payables and all short term and long-term debt. The Company is exposed to market risk primarily related to foreign exchange rate risk, interest rate risk and the market value of its investments. Thus, the Companyâs exposure to market risk is a function of investing and borrowing activities and revenue generating and operating activities in foreign currencies.
a) Currency risk
The company is exposed to currency risk to the extent that there is a mismatch between the currencies in which sales, purchase, other expenses and borrowings are denominated and the functional currency of the company. The functional currency of the company is Indian Rupees (INR). The currencies in which these transactions are primarily denominated is USD.
Sensitivity analysis
The strenghtening / weakening of the respective foreign currencies with respect to functional currency of Company would result in increase or decrease in profit or loss and equity as shown in table below. This analysis assumes that all other variables, in particular interest rates, remain constant. The following analysis has been worked out based on the exposures as of the date of statements of financial position.
b) Interest rate risk
Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in interest rates.
Interest rate sensitivity - fixed rate instruments
The companyâs fixed rate borrowings are carried at amortised cost. They are therefore not subject to interest rate risk as defined in IND AS 107, since neither the carrying amount nor the future cash flow will fluctuate because of a change in market interest rates.
NOTE NO. 5 Capital Management
The Companyâs 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. Management monitors the return on capital as well as the level of dividends to ordinary shareholders.
The Company monitors capital using a ratio of ânet debtâ to âequityâ. For this purpose, net debt is defined as total debt, comprising loans and borrowings less cash and cash equivalents and current investments.
The Companyâs net debt to equity ratio as at 31st March 2018, 31st March 2017 and 1st April 2016 was as follows.
NOTE NO. 6 Earning Per Share (EPS):
Basic EPS and Diluted EPS amounts are calculated by dividing the profit for the year attributable to equity holders of the company by the weighted average number of Equity shares outstanding during the year.
Terms and conditions of transactions with related parties
* All the related party transactions were made on terms equivalent to those that prevail in an armâs length transactions.
* Parties identified by the Management and relied upon by the auditors.
No amount in respect of related parties have been written off/back or are provided for.
Leases - Finance leases as lessee:
The company has entered into long-term leasing arrangements for land with government authority which are in the nature of finance lease. These arrangements do not involve any material recurring payments, hence other disclosures are not given.
NOTE NO. 7
a) As at 31st March, 2018, there are no Micro, Small and Medium Enterprises, as defined in the Micro, Small, Medium Enterprises Development Act, 2006, to whom the Company owes dues on account of principal amount together with interest and accordingly no additional disclosures have been made.
b) The above information regarding Micro, Small and Medium Enterprises has been determined to the extent such parties have been identified on the basis of information available with the Company. This has been relied upon by the auditors.
NOTE NO.8
Employee Benefit obligations
(A) Defined Contribution Plan
The Company has various schemes for long-term benefits such as provident fund and superannuation. In case of funded schemes, the funds are recognised by the Income tax authorities and administered through trustees /appropriate authorities. The Companyâs defined contribution plans are superannuation and employeesâ pension scheme (under the provisions of the Employeesâ Provident Funds and Miscellaneous Provisions Act, 1952) since the Company has no further obligation beyond making the contributions. The liability of the Company on the exempt Provident Fund managed by the trustees is restricted to the interest shortfall if any.
(B) Defined Benefit Plan
In accordance with the provisions of the Payment of Gratuity Act, 1972, the Company has a defined benefit plan which provides for gratuity payments. The plan provides a lump sum gratuity payment to eligible employees at retirement or termination of their employment. The amounts are based on the respective employeeâs last drawn salary and the years of employment with the Company. Liabilities in respect of the gratuity plan are determined by an actuarial valuation, based upon which the Company makes annual contributions to the Group Gratuity cum Life Assurance Schemes administered by the LIC of India, a funded defined benefit plan for qualifying employees. Trustees adminster the contributions made by the Company to the gratuity scheme. The most recent actuarial valuation of the defined benefit obligation along with the fair valuation of the plan assets in relation to the gratuity scheme was carried out as at March 31, 2018. The present value of the defined benefit obligations and the related current service cost and past service cost, were measured using the Projected Unit Credit Method.
Based on the actuarial valuation obtained in this respect, the following table sets out the details of the employee benefit obligation and the plan assets as at balance sheet date:
(vi) Sensitivity analysis
Reasonably possible changes at the reporting date to one of the relevant actuarial assumptions, holding other assumptions constant, would have affected the defined benefit obligation by the amounts shown below.
The above sensitivity analyses have been calculated to show the movement in defined benefit obligation in isolation and assuming there are no other changes in market conditions at the reporting date. In practice, generally it does not occur. When we change one variable, it affects to others. In calculating the sensitivity, project unit credit method at the end of the reporting period has been applied.
Other long-term employee benefits:
Compensated absences are payable to employees at the rate of daily basic salary and other components for each day of accumulated leave partially at the year end and partially on death or on resignation or upon retirement. The charge towards compensated absences for the year ended 31st March, 2018 based on actuarial valuation using the projected accrued benefit method is Rs. 29 lakhs (31st March 2017 : Rs. 4 lakhs).
9.1 The figure of Rs. 27.03 lakhs is as per the orders dated April 10, 2003 of the Assistant Commissioner of Sales Tax (Appeals), Thane. Thereafter, the Company had preferred an appeal before the Maharashtra Sales Tax Tribunal, which has passed its orders on August 27, 2009. However, the Company has not yet received the revised assessment orders giving effect to the above referred Tribunal orders. The Company has filed a Writ Petition before the Honourable High Court of Bombay contesting the Tribunal order.
9.2 The Company has imported certain raw materials and chemicals under the Advance Authorisation/License scheme without payment of duty subject to fulfilment of specified export obligations. However, the Company has yet to fulfil certain portion of these export obligations within the stipulated validity period. On a forward basis, the Companyâs management is confident of fulfilling these export obligations within the stipulated validity period and hence, no provision for the duty payable, in case the export obligation is not fulfilled, has been made in the accounts.
During the financial year 2012-2013, the Company had set up an in-house Research and Development facility at A-514, TTC Industrial Area, Mahape, Navi Mumbai 400701. This facility has commenced research and development work on May 1, 2012. The facility has been recognised by the Department of Scientific and Industrial Research, Ministry of Science and Technology, Government of India vide its letter dated December 31, 2012 upto December 31, 2015 and vide its letter dated April 1, 2015 upto March 31, 2018.
NOTE NO. 10
EVENTS AFTER THE REPORTING PERIOD
The Board of Directors have recommended a final dividend of Rs. 2.75 (55 %) per equity share of Rs. 5/-each. The cash outgo on account of final dividend and dividend tax will be Rs. 830.67 Lakhs.
NOTE NO. 11
Previous yearâs figures have been regrouped/reclassified wherever necessary to correspond with the current yearâs classification/disclosure.
Mar 31, 2016
NOTE 39:
STATEMENT ON SIGNIFICANT ACCOUNTING POLICIES:
39.1. METHOD OF ACCOUNTING:
The Financial Statements are prepared under the historical cost convention in accordance with the applicable Accounting Standards and the relevant provisions of the Companies Act, 2013. Further, the Company follows the mercantile system of accounting and recognizes income and expenditure on accrual basis except in the case of significant uncertainties.
39.2. USE OF ESTIMATES:
The preparation of financial statements require estimates and assumptions to be made that affects the reported amount of assets and liabilities on the date of financial statements and the reported amount of revenue and expenses during the reporting period. The difference between the actual results and estimates are recognized in the period in which the results are known/materialized.
39.3. INFLATION:
Assets and Liabilities are recorded at historical cost to the Company. These costs are not adjusted to reflect the changing value of the purchasing power of money.
39.4. FIXED ASSETS:
Fixed assets are stated at the cost of acquisition which includes taxes, duties and other identifiable direct expenses net of modvat credit availed less accumulated depreciation and amortization.
39.5. DEPRECIATION AND AMORTIZATION:
39.5.1. Depreciation on Tangible Fixed Assets is provided on pro-rata basis on the written down value method over the useful lives of assets as prescribed in Part C of Schedule II of the Companies Act, 2013. The Management of the Company estimates the useful lives and residual value for the following assets, based on independent technical evaluation, which is different from the useful lives and residual values as per Part C of Schedule II of the Companies Act, 2013, as under:
Category Useful Life Residual Value
Motor Car 5 years 25% of Cost
39.5.2. In the case of Leasehold Land, amortization/depreciation has been provided on pro-rata basis using the straight-line method over the period of the lease.
39.5.3. Intangible Fixed Assets are amortized over their respective individual estimated useful lives on a straight-line basis, commencing from the date the asset is available to the Company for it use.
39.6. INTANGIBLE ASSETS
Intangible Assets are stated at cost of acquisition net of recoverable taxes less accumulated amortization/ depletion. All costs, including financing costs till commencement of commercial production, net charges on foreign exchange contracts and adjustments arising from exchange rate variations attributable to the intangible assets are capitalized.
39.7. INVESTMENTS:
Long Term investments are stated at the cost of acquisition, except where there is diminution in value other than temporary, in which case the carrying value is reduced to recognize the decline. Current Investments are stated at the cost of acquisition or fair value, whichever is lower.
39.8. INVENTORIES:
Inventories are measured at lower of cost and net realizable value after providing for obsolescence, if any. Cost of inventories comprises of cost of purchase, cost of conversion and other cost including manufacturing overheads incurred in bringing them to their respective present location and condition. Cost of raw materials, work-in-progress, packing materials, trading and other products are determined on first-in-first-out basis.
39.9. FOREIGN CURRENCY TRANSACTIONS:
39.9.1. All transactions in foreign currency are recorded at the rates of exchange prevailing on the dates when the relevant transactions take place.
39.9.2. Monetary items in the form of Loans, Current Assets and Current Liabilities in foreign currency, outstanding at the close of the year, are converted in Indian Currency at the appropriate rates of exchange prevailing on the date of the Balance Sheet. The resultant gain or loss is accounted during the year.
39.9.3. In respect of Forward Exchange contracts entered into to hedge foreign currency risks, the difference between the forward rate and exchange rate at the inception of the contract is recognized as income or expense over the life of the contract. Further, the exchange differences arising on such contracts are recognized as income or expense along with the exchange differences on the underlying assets/liabilities.
39.10.REVENUE RECOGNITION:
Revenue is recognized only when it can be reliably measured and it is reasonable to expect ultimate collection. Revenue from operations includes sale of goods, services, sales tax, excise duty, adjustment for discounts (net), taxes and foreign exchange gain/loss on corresponding hedge contract. Dividend income is recognized when the right to receive is established. Interest income is recognized on time proportion basis taking into account the amount outstanding and rate applicable.
39.11.RETIREMENT BENEFITS:
Contribution to provident fund is charged to the Statement of Profit and Loss as incurred. The liability for payment of gratuity is covered through the Group Gratuity Scheme. Gratuity and Leave encashment benefits are accounted for based on actuarial valuations.
39.12.TAXATION:
Provision for income tax is made for both current and deferred taxes. Provision for current income tax is made on the current tax rates based on the assessable income. The Company provides for deferred tax based on the tax effect of timing differences resulting from the recognition of items in the financial statements and in estimating its current tax provision. Deferred tax assets are recognized where there is certainty that there will be sufficient future taxable income available against which such deferred tax assets can be realized.
39.13.IMPAIRMENT OF ASSETS:
At each Balance Sheet date, the Company reviews the carrying amounts of its assets to determine whether there is any indication that those assets suffered any impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of impairment loss. Recoverable amount is the higher of an asset''s net selling price and value in use. In assessing the value in use, the estimated future cash flows expected from the continuing use of the asset and from its disposal are discounted to its present value using a discount rate that reflects the current market assessment of the time value of money and the risks specific to the asset. An impairment loss is recognized whenever the carrying amount of an asset exceeds its recoverable amount. Reversal of impairment loss is recognized immediately as income in the Statement of Profit and Loss.
39.14.SUNDRY DEBTORS AND LOANS AND ADVANCES:
Sundry debtors and loans and advances are stated after making adequate provisions for doubtful balances.
39.15.GOVERNMENT GRANTS:
The Company recognizes Special capital Incentive received from the Government for setting up/expansion of an industrial undertaking as a capital Reserve.
39.16.BORROWING COSTS:
Borrowing costs attributable to the acquisition/construction of qualifying assets are capitalized and form part of the cost of the qualifying assets. A qualifying asset is an asset that necessarily takes a substantial period of time to get ready for its intended use. All other borrowing costs are charged to revenue as an expense.
39.17.PROVISIONS AND CONTINGENCIES:
A provision is recognized when the Company has a present obligation as a result of past event and it is probable that an outflow of resources will be required to settle the obligation, in respect of which a reliable estimate can be made. Provisions are not discounted to present value and are determined based on best estimate required to settle the obligation at Balance Sheet date. These are reviewed at each Balance Sheet date and adjusted to reflect the current best estimates. Contingent assets and liabilities are not recognized.
39.18.RESEARCH AND DEVELOPMENT:
Revenue expenses on Research and Development is recognized as an expenses in the year in which it is incurred and expenditure on capital assets is depreciated over the useful life of an assets.
39.19.LEASES:
Lease payments for assets taken on operating lease are recognized in the Statement of Profit and Loss over the lease term.
39.20.MATERIAL EVENTS:
Material events occurring after the balance sheet date are taken into cognizance.
39.21.OTHER ACCOUNTING POLICIES:
These are consistent with the generally accepted accounting principles.
Mar 31, 2015
NOTE 1:
SEGMENT REPORTING:
In the opinion of the management, the Company''s operations fall
within a single segment, namely ''Bulk drugs and Chemicals'', and
hence, there are no separate reportable segments as per Accounting
Standard 17 ''Segment Reporting''.
2 Defined Benefits Plan:
The present value of obligation is determined based on actuarial
valuation using the projected unit credit method. Valuations in
respect of gratuity and leave encashment have been carried out and
certified by an Independent Actuary.
IN-HOUSE RESEARCH AND DEVELOPMENT FACILITY
1 During the financial year 2012-2013, the Company has set up an
in-house Research and Development facility at A-514, TTC Industrial
Area, Mahape, Navi Mumbai 400701. This facility has commenced research
and development work on May 1,2012. The facility has been recognised by
the Department of Scientific and Industrial Research, Ministry of
Science and Technology, Government of India vide its letter dated
December 31, 2012 upto December 31,2015.
2 OTHER ACCOUNTING POLICIES:
These are consistent with the generally accepted accounting principles.
Mar 31, 2014
1. The company has only one class of Equity Shares having a par value
of R 5 per share. Each holder of equity share 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 approval of
the shareholders in the ensuing Annual General Meeting.
2. The shareholders of the Company had approved the sub-division of
Equity Shares of the Company having nominal/face value of R 10 each
into Equity Shares having nominal/face value of R 5 each at the
Extraordinary General Meeting ("EGM") held on June 9, 2006.
Consequently, the Authorised, Issued and Paid-up Share Capital were
divided from R 10 per Equity share to R 5 per Equity Share.
Name of related parties and description of relationship (as certified
by the management of the Company and relied upon by the auditor):
3. Entities under direct or indirect control or substantial influence:
4. Kant Pharma Pvt. Ltd (proprietor of Eskay Fine Chemicals), S Kant
Healthcare Ltd, S.K. Age Exports, Bharti & Co., Sevantilal Kantilal &
Co., Sevantilal Kantilal Pvt. Ltd., Sevak Pharma Pvt. Ltd., S.K. Pharma
(Jogeshwari), S.K. Brothers, S.K. Distributors, Eskay Speciality
Chemicals, Sevantilal Kantilal Trust, S.K. Logistics, Eskay Iodine Pvt.
Ltd. and S.Kant Chemicals Pvt. Ltd.
5. Key Management Personnel: Bipin N. Shah (Managing Director)
6. Relatives of Key Management Personnel
Bharat N. Shah, Bipin N. Shah (HUF), Ritesh B. Shah and Vivek B. Shah
1 Defined Contribution Plan:
Contribution to Defined Contribution Plan recognised as expenses in the
Statement of Profit and Loss
2 Defined Benefits Plan:
The present value of obligation is determined based on actuarial
valuation using the projected unit credit method. Valuations in
respect of gratuity and leave encashment have been carried out and
certified by an Independent Actuary.
NOTE 7:
IN-HOUSE RESEARCH AND DEVELOPMENT FACILITY
1 During the financial year 2012-2013, the Company has set up an
in-house Research and Development facility at A-514, TTC Industrial
Area, Mahape, Navi Mumbai 400701. This facility has commenced research
and development work on May 1, 2012. The facility has been recognised
by the Department of Scientific and Industrial Research, Ministry of
Science and Technology, Government of India vide its letter dated
December 31, 2012 upto December 31, 2015.
Mar 31, 2013
NOTE 1:
CONTINGENT LIABILITIES AND COMMITMENTS (TO THE EXTENT NOT PROVIDED FOR)
(i) Contingent Liabilities
(a) Claims against the company not acknowledged as debt
(b) Guarantees issued by banks on behalf
of the Company 1,750 1,750
(c) Other money for which the company
is contingently liable:
(1) Letter of Credit outstanding 410,562,519 392,858,975
(2) Sales Tax * 2,703,368 2,703,368
413,265,887 395,562,343
413,267,637 395,564,093
(ii) Commitments
(a) Estimated amount of contracts
remaining to be executed on capital
account and not provided for
(b) Uncalled liability on shares andd
other investments partly paid
(c) Other commitments # - -
TOTAL 413,267,637 395,564,093
NOTE 2:
SEGMENT REPORTING:
In the opinion of the management, the Company''s operations fall within
a single segment, namely ''Bulk drugs and Chemicals'', and hence, there
are no separate reportable segments as per Accounting Standard 17
''Segment Reporting''.
NOTE 3:
FOREIGN REMITTANCE OF DIVIDEND:
The Company had paid dividend in respect of shares held by
Non-Residents. The exact amount of dividends remitted in foreign
currency cannot be ascertained. The total amount remittable in this
respect is as under:
NOTE 4:
IN-HOUSE RESEARCH AND DEVELOPMENT FACILITY
a. During the financial year 2012-2013, the Company has set up an
in-house Research and Development facility at A-514, TTC Industrial
Area, Mahape, Navi Mumbai 400701. This facility has commenced research
and development work on May 1, 2012. The facility has been recognised
by the Department of Scientific and Industrial Research, Ministry of
Science and Technology, Government of India vide its letter dated
December 31, 2012 upto December 31, 2015.
b. The details of Capital & Revenue expenditure incured on the
in-house research and development facility in financial year 2012-2013
is as under:
Mar 31, 2012
A. The company has only one class of Equity Shares having a par value
of Rs 5 per share. Each holder of equity share 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 approval of
the shareholders in the ensuing Annual General Meeting.
b. The shareholders of the Company had approved the sub-division of
Equity Shares of the Company having nominal/face value of Rs 10 each
into Equity Shares having nominal/face value of Rs 5 each at the
Extraordinary General Meeting ('EGM') held on June 9, 2006.
Consequently, the Authorised, Issued and Paid-up Share Capital were
divided from Rs 10 per Equity share to Rs 5 per Equity Share.
a. The Company has not received the required information from
Suppliers regarding their status under the Micro, Small and Medium
Enterprises Development Act, 2006. Hence disclosures, if any, relating
to amount unpaid as at the year end together with interest paid/payable
as required under the said Act have not been made.
CONTINGENT LIABILITIES AND COMMITMENTS
1 (TO THE EXTENT NOT PROVIDED FOR)
(i) Contingent Liabilities
(a) Claims against the company not
acknowledged as debt - -
(b) Guarantees issued by banks on behalf
of the Company 1,750 1,750
(c) Other money for which the company is
contingently liable:
(1) Letter of Credit outstanding 392,858,975 176,246,578
(2) Sales Tax * 2,703,368 2,703,368
395,562,343 178,949,946
395,564,093 178,951,696
(ii) Commitments
(a) Estimated amount of contracts remaining
to be executed on capital account and not
provided for - -
(b) Uncalled liability on shares and other
investments partly paid - -
(c) Other commitments # - -
395,564,093 178,951,696
* The figure of Rs 2,703,368 is as per the orders dated April 10, 2003
of the Assistant Commissioner of Sales Tax (Appeals), Thane.
Thereafter, the Company had preferred an appeal before the Maharashtra
Sales Tax Tribunal, which has passed its orders on August 27, 2009.
However, the Company has not yet received the revised assessment orders
giving effect to the above referred Tribunal orders. The Company has
filed a Writ Petition before the Honourable High Court of Bombay
contesting the Tribunal order.
# The Company has imported certain raw materials and chemicals under
the Advance Authorisation/License scheme without payment of duty
subject to fulfilment of specified export obligations. However, the
Company has yet to fulfil certain portion of these export obligations
within the stipulated validity period. On a forward basis, the
Company's management is confident of fulfilling these export
obligations within the stipulated validity period and hence, no
provision for the duty payable, in case the export obligation is not
fulfilled, has been made in the accounts.
2 SEGMENT REPORTING
In the opinion of the management, the Company's operations fall
within a single segment, namely 'Bulk drugs and Chemicals', and
hence, there are no separate reportable segments as per Accounting
Standard 17 'Segment Reporting'.
3 The financial statements for the year ended March 31, 2011 were
prepared as per the then applicable, erstwhile Schedule VI to the
Companies Act, 1956. Consequent to the notification of Revised Schedule
VI under the Comapanies 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
conform to this year's classification. The adoption of Revised
Schedule VI for previous year figures does not impact recognition and
measurement priciples followed for preparation of financial statements.
Mar 31, 2011
1. The Company has not received the required information from
Suppliers regarding their status under the Micro, Small and Medium
Enterprises Development Act, 2006. Hence disclosures, if any, relating
to amounts unpaid as at the year end together with interest
paid/payable as required under the said Act have not been made.
2. Segment Reporting:
In the opinion of the management, the Company's operations fall within
a single segment, namely "Bulk drugs and Chemicals", and hence, there
are no separate reportable segments as per Accounting Standard 17
'Segment Reporting'.
3. Contingent Liabilities:
Nature of the Dues 31 -03-2011 31 -03-2010
(Rupees) (Rupees)
a. Guarantees issued by banks on
behalf of the Company - 1,219,015
b. Letters of Credit outstanding 176,246,578 208,262,661
c. Claims against the Company not
acknowledged as debts:
i Sales Tax (including interest and
penalty) 2,703,368* 2,703,368
ii Income-tax - -
2,703,368 2,703,368
* The figure of Rs. 2,703,368 is as per the orders dated April 10, 2003
of the Assistant Commissioner of Sales Tax (Appeals), Thane.
Thereafter, the Company had preferred an appeal before the Maharashtra
Sales Tax Tribunal, which has passed its orders on August 27, 2009.
However, the Company has not yet received the revised assessment orders
giving effect to the above referred Tribunal orders. The Company has
filed a Writ Petition before the Honourable High Court of Bombay
contesting the Tribunal order.
4. The Company has imported certain raw materials and chemicals under
the Advance License scheme without payment of duty subject to
fulfilment of specified export obligations. However, the Company has
yet to fulfil certain portion of these export obligations within the
stipulated validity period. On a forward basis, the Company's management
is confident of fulfilling these export obligations and hence, no
provision for the duty payable, in case the export obligation is not
fulfilled, has been made in the accounts.
(b) As of the Balance Sheet date, the Company's net foreign currency
exposure that is not hedged by a derivative instrument or otherwise is
Rs. 10,460,102/- (Previous Year Rs.170,637,842).
5. Previous years figures have been re-grouped and/or re-classified as
deemed appropriate.
Mar 31, 2010
1. Particulars regarding Capacity, Production, Opening and Closing
Stock and Turnover - as certified by the Managing Director (figures in
bracket relate to previous year):
(a) Licensed Capacity : Not Applicable
2. The Company has not received the required information from
Suppliers regarding their status under the Micro, Small and Medium
Enterprises Development Act, 2006. Hence disclosures, if any, relating
to amounts unpaid as at the year end together with interest paid /
payable as required under the said Act have not been made.
3. Segment Reporting:
In the opinion of the management, the Companys operations fall within
a single segment, namely "Bulk drugs and Chemicals", and hence, there
are no separate reportable segments as per Accounting Standard 17
"Segment Reporting".
1. Entities under direct or indirect S. Kant Pharma Pvt. Ltd
(proprietor of Eskay Fine Chemicals), S Kant control or substantial
influence: Healthcare Ltd, S.K. Age Exports, Bharti & Co., Sevantilal
Kantilal & Co.,
Sevantilal Kantilal Pvt. Ltd., Sevak Pharma Pvt. Ltd., S.K. Age
Exports, S.K. Pharma (Jogeshwari), S.K. Brothers, S.K. Distributors,
Eskay Speciality Chemicals and Sevantilal Kantilal Trust.
2. Key Management Personnel: Bipin N. Shah (Managing Director) and
G.C. Sharda (Chief Executive Officer)
3. Relatives of Bharat N. Shah, Bipin N. Shah (HUF), Ritesh B. Shah,
Ketan N. Shah and Key Management Personnel Vivek B. Shah
4. Contingent Liabilities:
31-3-2010 31-3-2009
Nature of the Dues Rupees Rupees
a. Guarantees issued by banks on
behalf of the Company 1,219,015 4,167,207
b. Letters of Credit outstanding 208,262,661 298,400,000
c. Claims against the Company not
acknowledged as debts:
i Sales Tax (including interest
and penalty) 2,703,368* 2,703,368
ii Income-tax - 329,694
2,703,368 3,033,062
* The figure of Rs.2,703,368 is as per the orders dated April 10, 2003
of the Assistant Commissioner of Sales Tax (Appeals), Thane.
Thereafter, the Company had preferred an appeal before the Maharashtra
Sales Tax Tribunal, which has passed its orders on August 27, 2009.
However, the Company has not yet received the revised assessment orders
giving effect to the above referred Tribunal orders. The Company now
plans to file a Writ Petition before the Honourable High Court of
Bombay contesting the Tribunal order.
5. The Company has imported certain raw materials and chemicals under
the Advance License scheme without payment of duty subject to
fulfilment of specified export obligations. However, the Company has
yet to fulfil certain portion of these export obligations within the
stipulated validity period. On a forward basis, the Companys
management is confident of fulfilling these export obligations and
hence, no provision for the duty payable, in case the export obligation
is not fulfilled, has been made in the accounts.
(b) As of the Balance sheet date, the Companys net foreign currency
exposure that is not hedged by a derivative instrument or otherwise is
Rs. 170,637,842 (Previous Year Rs. 185,387,624)
6. (a) In context with the Interim Dividend of Rs.27,840,000 paid by
the Company, the Company has not complied with the provisions of
section 205(1 A) (i.e. there is a delay in transfer of dividend into a
separate Bank Account) and 205A (i.e. there is a delay in payment of
dividend to its shareholders) of the Companies Act, 1956.
(b) During the financial year 2009-2010, the Company has paid
Remuneration to Ritesh B. Shah, which is in excess of limit specified
in section 314(IB) of the Companies Act, 1956. The Company has since
recovered the excess remuneration in financial year 2010-11.
7. Previous years figures have been re-grouped and/or re-classified as
deemed appropriate.
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