Mar 31, 2018
1. company information
Asahi Songwon Colors Limited (the âCompanyâ) is a public limited Company domiciled in India with its registered office at âAsahi Houseâ, 13, Aarayans Corporate Park, Thaltej - Shilaj Road, Nr. Shilaj Railway Crossing, Thaltej, Ahmedabad - 380 059. The equity shares of the Company are listed on BSE Limited and National Stock Exchange of India Limited.
The Company is principally engaged in the business ofmanufacturing & export of color pigments and its derivatives.
The financial statements as at March 31, 2018 present the financial position of the Company.
The financial statements for the year ended March 31, 2018 were approved by the Board of Directors and authorized for issue on May 29, 2018.
a. Terms / rights attached to Equity shares
The Company has issued only one class of equity shares having a par value of RS.10 per share. Each holder of Equity Shares are entitled to one vote per share. The Company declares and pays dividend in Indian rupees. The dividend proposed by the Board of Directors is subject to the approval of the shareholders at the Annual General Meeting, except in case of interim dividend. In the event of liquidation of the Company, the holders of equity shares will be entitled to receive the realised value of the assets of the Company, remaining after the payment of all preferential dues. The distribution will be in proportion to the number of equity shares held by the shareholders.
i. 1. Aggregate number and class of shares allotted as fully paid up pursuant to contracts without payment being received in cash: NIL
2. Aggregate number and class of shares allotted as fully paid by way of Bonus Shares : NIL
3. Aggregate number and class of shares bought back : NIL
4. Securities which are convertible into Equity Shares : NIL
5. Aggregate Value of Calls unpaid by directors and officiers : NIL
6. Shares reserved for issued under options & contracts or commitments for the sale of shares or disinvestment, including terms of amounts: NIL
Description of nature and purpose of each reserve :
General Reserve: General reserve is created from time to time by way of transfer profits from retained earnings for appropriation purposes. General reserve is created by a transfer from one component of equity to another and is not an item of other comprehensive income. General Reserve is a free reserve available to the company.
securities premium Reserve: The amount received in excess of face value of the equity shares is recognised in Securities Premium Reserve. The reserve is utilised in accordance with the specific provision of the Companies Act, 2013.
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. Retained Earnings is a free reserve available to the Company.
Equity instruments through other comprehensive income: This represents the cumulative gains and losses arising on the revaluation of equity instruments measured at fair value through other comprehensive income, under an irrevocable option, net of amounts reclassified to retained earnings when such assets are disposed off.
Other Comprehensive Income: Other Comprehensive Income includes re-measurement loss on defined benefit plans, net of taxes that will not be reclassified to profit and loss.
I.a Indian Rupee Term loan from Banks(Other than Vehicle Loans) are secured by:
i primery security:
State Bank of India Term Loan: First charge in favour of State Bank of India By way of Equitable Mortgage and Hypothecation on entire Fixed Assets ( Land, Building, Plant & Machinery) both present and future of the company situated at Survey No. 437 to 440, ECP Cchannel Road, Padra, Vadodara. ( Previous year old survey no. 429-432, ECP Channel Road, Padra, Vadodara)
State Bank of India Corporate Term Loan: First charge in favour of State Bank of India By way of Hypothecation and Equitable Mortgage of Plant and Machinery / Fixed Assets created out of Corpotate Loan.
Federal Bank Ltd. Term Loan: Exclusive charge on Fixed Assets purchased out of the term loan of Federal Bank Ltd.
ii Collateral security:
State Bank of India Term Loan and Corporate Term Loan: Second charge in favour of State Bank of India, on all chargable current assets of the Company, both present and future.
I.b Vehicle loans are secured by hypothecation of concerned vehicles.
I.c Term of Repayment.
i Corporate Term loan from State Bank of India amounting to H Nil (Previous Year RS.350.00 Lakh) Repayable in and 7 quarterly installments of RS.50.00 Lakh
ii Term Loan from Federal Bank Ltd. RS.2,500.00 Lakh senctioned and disbursed as at 31-03-2018 RS.2,135.59 Lakhs ( Previous year Nil), Repayable in 20 equal Instalments of RS.125.00 Lakhs starting from October 22, 2018
iii Vehicle loans are repayable in equal monthly installment over the terms of 36 installments Previous Year H Nil
iv There was no default in repayment of loan or interest.
The working capital limits from bank are secured by:
i Primery security:
First charge in favour of State Bank of India by way of hypothecation over entire present and future current assets of Company.
ii Collateral security:
First charge in favour of State Bank of India on the entire Fixed Assets of the Company (excluding vehicles purchased) of which includes:
- Equitable mortgage and / or hypothecation charge on entire Fixed Assets ( Land, Building, Plant and Machinery) both present and future of the Company situated at Survey No. 437 to 440 ( Previous Year Block No. 429 to 432 ) ECP Channel Road, Village Dudhwada, Taluka Padra, District Vadodara, Gujarat.
- First Charge by way of Hypothecation of Wind Mill with all itâs accessories purchased out of Bank Finance located at 308 / P Moti Sindholi, Kutch, Gujarat.
- Lien of TDR worth of RS.25.00 Lakhs.
There are no Micro, Small & Medium Enterprises to whom the company over dues, which are outstanding for more than 45 days as at March 31, 2018. This information is disclosed under the Micro, Small & Medium Enterprises Development Act, 2006 which has been determined to the extent such parties have been identified on the basis of the information available with the company.
2 EARNING PER sHARE_
Basic and diluted earnings per share
Earning Per share is calculated by dividing the Profit / (Loss) attributable to the Equity Shareholders by the weighted average number of Equity Shares outstanding during the year. The numbers used in calculating basic and diluted earning per Equity Share as stated below:
3 segment reporting
The Company operates in a single segment and in line with Ind AS - 108 - âOperating Segmentsâ the operation of the Company fall under Chemical Business which is considered to be the only reportable business segment.
4 RELATED pARTY Disclosures AND THEIR RELATIVEs
Related Party Disclosures as required by Accounting Standard Ind AS 24 issued by Institute of Chartered Accountants of India are given below:
1 RELATED pARTIEs AND NATuRE OF RELATIONsHip
a) The Enterprises in which Key Managerial Personnel (KMP) and their relatives have significant influence:
AksharChem (India) Ltd Skyjet Aviation Pvt Ltd
Skyways
Akshar Silica Pvt. Ltd Gokul M. Jaykrishna HUF Hunter Wealth Management LLP
b) Key Management Personnel:
Mrs. Paru M. Jaykrishna Chairperson & Mg. Director
Mr. Gokul M. Jaykrishna Jt. Managing Director & CEO Mr. Chandravadan R. Raval General Manager (Accounts) & CFO Mr. Saji V Joseph Company Secretary
c) Relative of Key Managerial Personnel Mr. Mrugesh Jaykrishna
5 disclosure ON CORpORATE sOCIAL responsibility ( CsR ) activities u/s 135 OF THE COMpANIEs ACT, 2013 is As UNDER:
a. Gross amount required to be spent by the Company during the year: RS.81.16 Lakhs ( Previous year RS.136.43 Lakhs )
b. Amount spent and utilized during the year on:
6 CApiTAL MANAGEMENT
For the purpose of the Company capital management, capital includes issued equity capital, share premium and all other equity reserves attributable to the equity holders of the Company. The primary objective of the Companyâs capital management is to maximise the shareholder value.
The Company manages its capital structure and makes adjustments in light of changes in economic conditions and the requirements of the financial covenants. To maintain or adjust the capital structure, the Company may adjust the dividend payment to shareholders, return capital to shareholders or issue new shares. The Company monitors capital using a gearing ratio, which is net debt divided by total capital plus net debt. The Company includes within net debt, interest bearing loans and borrowings, trade and other payables, less cash and cash equivalents.
In order to achieve this overall objective, the Companyâs capital management, amongst other things, aims to ensure that it meets financial covenants attached to the interest-bearing loans and borrowings that define capital structure requirements. Breaches in meeting the financial covenants would permit the bank to immediately call loans and borrowings. There have been no breaches in the financial covenants of any interest bearing loans and borrowing in the current period.
As at March 31, 2018, the Company has only one class of equity shares. No changes were made in the objectives, policies or processes for managing capital during the years ended March 31, 2018 and March 31, 2017.
7 DIVIDEND
Proposed Dividend
The Board of Directors at its meeting held on May 29, 2018 have recommended a payment of final dividend of RS.3.00 per equity shares of face value of RS.10/- each for the financial year ended March 31, 2018. The same amounts to RS.443.85 Lakhs including dividend distribution tax of RS.75.68 Lakhs The above is subject to approval at the ensuing Annual General Meeting of the Company and hence is not recognized as a liability.
8 FINANCIAL Risk MANAGEMENT - OBJECTIVEs AND policies
The Companyâs financial liabilities comprise other than derivatives mainly of borrowings, trade payables and other payables. The main purpose of these financial liabilities is to finance the Companyâs operations. The Companyâs principal financial assets, other than derivatives, include trade and other receivables, other balances with banks, loans, investments and cash and cash equivalents that arise directly from its operations.
The Companyâs activities are exposed to Credit risk, Market risk and Liquidity risk.
The Board of directors of the Company are overall responsible for the establishment and oversight of the companyâs risk management framework. The Companyâs risk management policies are established to identify and analyze 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 Companyâs 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.
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 loans. The carrying amounts of financial assets represent the maximum credit risk exposure.
Trade receivables and loans
The companyâs exposure to credit risk is influenced mainly by the individual characteristics of each customer. However, management also considers the factors that may influence the credit risk of its customer base. The company has established a credit policy under which each new customer is analyzed individually for creditworthiness before the companyâs standard payment and delivery terms and conditions are offered. Sale limits are established for each customer and reviewed quarterly. Any sales exceeding those limits require approval from the management of the company.
The company limits its exposure to credit risk from trade receivables by establishing a maximum payment period of 120 days for customers. More than 85% of the companyâs customers have been transacting with the company for over four years, and none of these customersâ balances are credit-impaired at the reporting date.
Confirmation of balances from Debtors & Loans and Advances have been received and the same is being reconciled.
Cash and cash equivalents
The company holds cash and cash equivalents of RS.60.76 Lakhs at March 31, 2018 (March 31, 2017: RS.74.38 Lakhs). The cash and cash equivalents are held with bank and cash on hand.
Liquidity Risk
Liquidity risk is the risk that the company will encounter difficulty in meeting the obligations associated with its financial liabilities that are settled by delivering cash or another financial asset. The companyâs approach to managing liquidity is to ensure, as far as possible, that it will have sufficient liquidity to meet its liabilities when they are due, under both normal and stressed conditions, without incurring unacceptable losses or risking damage to the companyâs reputation. The company uses process costing to cost its products, which assists it in monitoring cash flow requirements and optimizing its cash return on investments.
Market Risk
Market risk is the risk that changes in market prices - such as foreign exchange rates and interest rates - will affect the companyâs income or the value of its holdings of financial instruments. The objective of market risk management is to manage and control market risk exposures within acceptable parameters, while optimizing the return.
Interest rate risk
Interest rate risk is the risk that fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. In order to optimize the companyâs position with regards to the interest income and interest expenses and to manage the interest rate risk, treasury performs a comprehensive corporate interest rate risk management by balancing the proportion of fixed rate and floating rate financial instruments in it total portfolio.
The company is not exposed to significant interest rate risk as at the specified reporting date.
Currency Risk
The company is exposed to transactional foreign currency risk to the extent that there is a mismatch between the currencies in which sales, purchases, receivables and borrowings are denominated and functional currency. The functional currency of the Company is INR. The currencies in which these transactions are primarily denominated are US dollars.
The Company Forex risk management policy is to hedge currency exchange fluctuation and mitigate currency volatility and risks and to avoid uncertainties in cash flows. All foreign currency exposures - financial assets and liabilities and firm commitments (imports) & probable forecast transactions (exports) which are off-balance sheet exposures are covered under Forex risk management policy.
Hedging of trade exposures viz., imports and exports are generally hedged on net exposures basis. The company mostly uses forward exchange contracts to hedge its currency risks mostly with the maturity of less than one year from the reporting date. The Company does not use derivative financial instruments for trading or speculative purposes.
price Risk
Investment Price Risk
The companyâs exposure to price risk arises from investments in equity and mutual fund held by the company and classified in the balance sheet at fair value through profit or loss. To manage its price risk arising from investments, the company diversifies its portfolio.
Sensitivity Analysis
The table below summarises the impact of increase/decrease of the index on the companyâs equity and profit for the period. The analysis is based on the assumption that the price of the instrument has increased by 3% or decreased by 3% with all other variables held constant.
Commodity price Risk
Principal Raw Materials for companyâs products are Phthalic Anhydride and Cuprous Chloride. Company sources its raw material requirements from domestic markets as well as from International Markets. Company effectively manages availability of material as well as price volatility through well planned procurement and inventory strategy and also through appropriate contracts and commitments.
Sensitivity Analysis
The table below summarises the impact of increase/decrease in prices of Phthalic Anhydride and Cuprous Chloride RS.1 per kg on profit for the period.
9 FINANCIAL INsTRUMENTs - FAIR VALUEs & Risk MANAGEMENT Accounting Classifications & Fair Value Measurements
The fair values of the financial assets and liabilities are measured at the amount at which the instrument could be exchanged in a current transaction between willing parties, other than in a forced or liquidation sale.
All financial instruments are initially recognized and subsequently re-measured at fair value as described below :
1 The fair value of investment in quoted equity shares and mutual funds is measured at quoted price or NAV.
2 Fair values of cash and short term deposits, trade and other short term receivables, trade payables, other current liabilities, short term loans from banks and other financial institutions approximate their carrying amounts largely due to short-term maturities of these instruments.
3 Financial instruments with fixed and variable interest rates are evaluated by the Company based on parameters such as interest rates and individual credit worthiness of the counterparty. Based on the evaluation, allowances are taken to account for the expected losses of these receivables.
4 The fair value of forward foreign exchange contracts and currency swaps is determined using forward exchange rates and yield curves at the balance sheet date.
The company uses the following hierarchy for determining and disclosing the fair values of financial instruments by valuation technique: Level 1 : Quoted prices (unadjusted) in active markets for identical assets or liabilities.
Level 2 : Inputs other than the quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly.
10 FIRsT TIME ADOpTION OF IND As
The Company has prepared financial statements for the year ended March 31, 2018 are the first financial statements prepared by the company in accordance with Ind AS. For periods up to and including the year ended March 31, 2017, the company prepared its financial statements in accordance with accounting standards notified notified under Section 133 of the Companies Act, 2013, read together with paragraph 7 of he Companies (Accounts) Rules, 2014 (Previous GAAP).
Accordingly, the company has prepared financial statements which comply with Ind AS applicable for periods ending on or after March 31, 2018, together with the comparative period data as at and for the year ended March 31, 2017, as described in the summary of significant accounting policies. In preparing these financial statements, the Companyâs opening balance sheet was prepared as at April 1, 2016, the Companyâs date of transition to Ind AS. This note explains the principal adjustments made by the Company in restating its Indian GAAP financial statements, including the balance sheet as at April 1, 2017 and the financial statements as at and for the year ended March 31, 2017. The transition to Ind-AS has resulted in changes in the presentation of the financial statements, disclosures in the notes, accounting policies and principles.
Exemptions on first time adoption of Ind-AS availed in accordance with Ind-AS 101, have been described below:
Exemptions availed on first time adoption of Ind-As 101:
Ind-AS 101 allows certain optional exemptions and mandatory exemptions on first time adoption of Ind-AS from the retrospective application of certain provisions of Ind-AS. The Company has accordingly applied the following exemptions:
A. Ind As optional exemptions:
Deemed Cost for Property, Plant and Equipment and Intangible Assets
Ind-AS 101 permits, a first time adopter to elect to continue with the carrying values for all of its property, plant and equipment 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 after making necessary adjustments for de-commissioning liabilities. This exemption can also be used for intangible assets covered by Ind-AS 38 and Investment properties covered by Ind-AS 40. Accordingly, the Company has elected to measure all of its Property, Plant and Equipment, Investment Properties and Intangible Assets at their previous GAAP carrying value.
B. Ind As mandatory exceptions:
Estimates
An entityâs estimates in accordance with Ind-AS at the date of transition to Ind-AS shall be consistent with estimates made for the same date in accordance with previous GAAP (after adjustments to reflect any difference in accounting policies), unless there is an objective evidence that those estimates were in error. Ind-AS estimates at April 1, 2016 are consistent with the estimates as at the same date made in conformity with previous GAAP.
Classification and measurement of financial assets
Ind-AS 101 requires an entity to assess classification and measurement of financial assets (investment in debt instruments) on the basis of the facts and circumstances that exist at the date of transition to Ind-AS.
11 The figures of the previous period have been regrouped / reclassified, wherever necessary, so as to be in conformity with the figures of the current periodâs classification / disclosure.
Mar 31, 2016
I.a Indian Rupee Term loan from Banks(Other than Vehicle Loans) are secured by:
i Primery Security:
State Bank of India Term Loan: First charge in favour of State Bank of India By way of Hypothecation of Fixed Assets acquired for the up gradation of Plants at Plot No. 429-432, ECP Channel Road, Padra, Vadodara ( admeasuring 9751 Sq Mtrs each except Block No. 432 admeasuring 9632 Sq Mtrs, aggregating to 38885 Sq Mtrs.)
State Bank of India Corporate Term Loan: First charge in favour of State Bank of India By way of Hypothecation and Equitable Mortgage of Plant and Machinery / Fixed Assets created out of Corporate Loan.
ii Collateral Security:
State Bank of India Term Loan and Corporate Term Loan: Second charge in favour of State Bank of India, on all chargeable current assets of the Company, both present and future.
I. b Vehicle loans are secured by hypothecation of concerned vehicles.
I.c Term of Repayment.
i Rupee Term loan from State Bank of India amounting to Rs.7,506,029/- (Previous Year Rs. 63,164,430/-) Repayable in one quarterly Installment only.
ii Corporate Term loan from State Bank of India amounting to Rs.58,077,415/- (Previous Year Rs.28,990,229/-) Repayable in 7 quarterly Installments of Rs. 2,500,000/- and 7 quarterly installments of Rs. 5,000,000/- and balance installment for Rs. 5,577,415/- ( Previous year Corporate Term loan sanctioned for Rs. 60,000,000/- was not fully disbursed as on March 31, 2015 )
iii Vehicle loans are repayable in equal monthly installment over the terms of 16 installments
iv There was no default in repayment of loan or interest.
The working capital limits from bank are secured by:
i Primary Security:
First charge in favour of State Bank of India by way of hypothecation over entire present and future current assets of Company.
ii Collateral Security:
First charge in favour of State Bank of India on the entire Fixed Assets of the Company ( Excluding Vehicles Purchased) of which included:
- Equitable mortgage and / or hypothecation charge on entire Fixed Assets ( Land, Building, Plant and Machinery) both present and future of the Company situated at Block No. 429 to 432 ECP Channel Road, Village Dudhwada, Taluka Padra, District Vadodara, Gujarat.
- Hypothecation of Wind Mill with all its accessories purchased out of Bank Finance located at 308 / P Moti Sindholi, Kutch, Gujarat.
- Lien of TDR worth of Rs. 0.25 Crore.
1. ACCOUNTING FOR TAX ON INCOME
Provision for current tax is made under normal computation. Provision of Income Tax has been made in the accounts taking into consideration various concessions available and depreciation under the Income Tax Act 1961. MAT Credit entitlement has been treated as advance payment of Tax.
2. DISCLOSURE ON CORPORATE SOCIAL RESPONSIBILITY ( CSR ) ACTIVITIES U/S 135 OF THE COMPANIES ACT, 2013 IS AS UNDER:
a. Gross amount required to be spent by the Company during the year: Rs. 91.92 Lacs (Previous year Rs. 31.64 Lacs)
b. Amount spent and utilized during the year on:
3. IMPAIRMENT OF ASSETS
No material impairment of Assets has been identified by the Company and as such no provision is required as per Accounting Standard 28 issued by The Institute of Chartered Accountants of India.
4. SCHEME OF ARRANGEMENT
Pursuant to the Scheme of Arrangement ("the Scheme") under Section 391 to 394 and other applicable provisions of the Companies Act, 1956 between AksharChem (India) Limited ("ACIL"), Asahi Songwon Colors Limited ("the Company") and their respective shareholders and creditors as approved by the Hon''ble High Court of Gujarat vide its certified order dated November 29, 2014, which became effective from December 2, 2014 on filing with Registrar of Companies, Gujarat and accordingly all assets and liabilities of the CPC Green Division (i.e. business and interests in manufacture of CPC Green Division) of the Company has been transferred to and vested in AksharChem (India) Limited at their respective book values on a going concern basis with effect from the appointed date (i.e. April 1, 2014). Accordingly the same has been reflected in the previous year''s figures.
5. The figures of the previous period have been regrouped / reclassified, wherever necessary, so as to be in conformity with the figures of the current period''s classification / disclosure.
Mar 31, 2015
1. SuNDRY DEBTORS, SuNDRY CREDITORS AND LOANS AND ADVANCES
The Company has received balance confirmations from major parties and
for few exceptions, the management is in the opinion that the current
assets, loans and advances have a value on realization in ordinary
course of business at least equal to the amount at which they are
stated.
2. EMPLOYEES BENEFITS
In compliance with the Accounting Standard on "Employee Benefits" (AS
15) (Revised 2005) notified by Companies (Accounting Standards) Rules,
2006, the following disclosures have been made:
3. SEGMENT REPORTING
The Company has only one identified reportable business segment namely
"Pigments" and does not fall under secondary segment for the purpose of
Accounting Standard on "Segment Reporting" (AS 17) notified by
Companies (Accounting Standards) Rules, 2006.
4. RELATED PARTY DISCLOSuRES
Related Party Disclosures as required by Accounting Standard 18 issued
by Institute of Chartered Accountants of India are given below:
1 Related Parties and Nature of Relationship
a) The Enterprises in which Key Managerial Personnel (KMP) and their
relatives have significant influence: AksharChem (India) Ltd
Skyjet Aviation Pvt Ltd
Skyways
Asahi Energy Pvt Ltd
Asahi Powertech Pvt Ltd
Flyover Communication Pvt Ltd
Akshar Silica Pvt. Ltd
b) Key Management Personnel: Mrs. Paru M. Jaykrishna
Mr. Gokul M. Jaykrishna Mr. Munjal M. Jaykrishna Mr. Saji V Joseph Mr.
Chandravadan R. Raval
c) Relative of Key Managerial Personnel Mr. Mrugesh Jaykrishna
5. ACCOuNTING FOR TAX ON INCOME
Provision for current tax is made under normal computation. Provision
of Income Tax has been made in the accounts taking into consideration
various concessions available and depreciation under the Income Tax Act
1961. MAT Credit entitlement has been treated as advance payment of
Tax.
6. IMPAIRMENT OF ASSETS
No material impairment of Assets has been identified by the Company and
as such no provision is required as per Accounting Standard 28 issued
by The Institute of Chartered Accountants of India.
7. The figures of the previous period have been regrouped /
reclassified, wherever necessary, so as to be in conformity with the
figures of the current period's classification / disclosure.
8. SCHEME OF ARRANGEMENT
1 Pursuant to the Scheme of Arrangement ("the Scheme") under Section
391 to 394 and other applicable provisions of the Companies Act, 1956
between AksharChem (India) Limited ("ACIL"), Asahi Songwon Colors
Limited ("the Company") and their respective shareholders and creditors
as approved by the Hon'ble High Court of Gujarat vide its certified
order dated November 29, 2014, which became effective from December 2,
2014 on filing with Registrar of Companies, Gujarat and accordingly all
assets and liabilities of the CPC Green Division (i.e. business and
interests in manufacture of CPC Green Division) of the Company has been
transferred to and vested in AksharChem (India) Limited at their
respective book values on a going concern basis with effect from the
appointed date (i.e. April 1, 2014). Accordingly, these financial
statements do not include the financial statements of the said CPC
Green Division of the Company for the period from 01.04.2014 to
31.03.2015.
2 The whole of the assets and liabilities of the Green Division of the
Company became the assets and liabilities of AksharChem (India) Ltd.,
and were transferred at their book values as appearing in the books of
the Company with effect from the appointed date (i.e. 01-04- 2014)
pursuant to the scheme of arrangement. The details of the assets and
liabilities transferred to AksharChem (India) Ltd. are as under:
3 Upon the scheme being effective the Authorised Share Capital of the
Company amounting to Rs35,000,000/- has been transferred to AksharChem
(India) Limited and accordingly the Authorised Share Capital of the
Company automatically stands reduced to the said extent as on the
effective date without any further act or deed.
4 The transaction pertaining to the CPC Green Division of the Company
from the appointed date up to the effective date of the Scheme of
Arrangement has been deemed to be made by AksharChem (India) Limited.
5 The employees of the demerged undertaking have been transferred to
AksharChem (India) Limited on their existing terms of employment with
the Company.
6 All contingent liabilities relating to demerged undertaking has been
transfer to AksharChem (India) Limited on the appointed date.
7 All loans, advances and other facilities sanctioned to the Company in
relation to the CPC Green Division sanctioned by State Bank of India
prior to the Appointed Date, which are partly drawn or utilized is
transferred to AksharChem (India) Limited. Further, such loans, advance
and other facilities utilized either partly or fully by the Company
from the appointed date till the effective date of the CPC Green
Division (within the overall limits sanctioned by State Bank of India)
is on the effective date treated as loans, advances and other
facilities made available by AksharChem (India) Limited without any
further act or deed on the part of the Resulting Company.
8 Pursuant to the sanctioned scheme of arrangement, AksharChem (India)
Limited (the resulting Company) without any further application or
deed, issued and allotted 23,60,050 equity shares of Rs10/- each at par
to the equity shareholders of the Company in the ratio of 5 (five)
fully paid up Equity Shares of Rs10/- each of AksharChem (India) Limited
(Resulting Company) has been issued and allotted for every 26 (twenty
six) fully paid up Equity Shares of Rs10/- each held in the Company
(Demerged Company) on the record date February 3, 2015.
9. DEPRECIATION
In accordance with the provisions of the Companies Act, 2013 effective
from April 1, 2014. The Company has revised depreciation rate on fixed
assets as per the useful life specified in part "C" of schedule II of
the Act. As a result of this change, the depreciation charged during
the year ended March, 2015 is higher by Rs31.23 Lacs.
10. Extra Ordinary Items shown in Profit and Loss Rs Nil (Previous year
Rs13,521,305/- represents unrealised export licenses written off,
Rs10,077,181/- unrealised claims written off and Rs855,676/- excess
depreciation written back).
11. The Prior Period Adjustments for Rs3,855,000/- pertains to the
recovery of excess payment made as remuneration to Managing Directors
of the Company during the Financial Year 2013-2014. (Previous year Rs
Nil).
12. The figures stated in the previous year are inclusive of figures of
CPC Green Division of the Company which have been demerged with effect
from the appointed date of the scheme (i.e. April 01, 2014) the
accounting effect of which has been given and as such current year
figures are not comparable with those of previous year figures.
Mar 31, 2014
NOTE 1 CONTINGENT LIABILITIES AND COMMITMENTS
(Amount in H)
March 31, 2014 March 31, 2013
1 Letter of Credit and Bank
Guarantees issued by bankers and
outstanding at the end 115,963,265 54,544,162
of the year
2 Estimated amount of Contracts /
purchase orders remaining to be
executed and not 50,205,798 60,751,814
provided for Capital goods /
Capital work in progress
3 Bills discounted against Letter
of Credit but not realized and
credited to the parties 3,360,140 -
accounts
4 In respect of Income Tax 8,715,081 8,715,081
Name of Statute : Income Tax Act, 1961 Nature of the dues : Income tax
(A.Y. 2001-02 to 2011-12)
Forum where dispute is pending : Commissioner of Income Tax (Appeal)
/ITAT
NOTE 2 SEGMENT REPORTING
The Company has only one identified reportable business segment namely
"Pigments" and does not fall under secondary segment for the purpose of
Accounting Standard on "Segment Reporting" (AS 17) notifed by Companies
(Accounting Standards) Rules, 2006.
NOTE 3
The extraordinary item shown in Statement of profit and loss represents
unrealized export incentives written off for H13,521,305 (Previous year
Nil), Unrealised claims written off for H10,077,181 (Previous year Nil)
and excess depreciation written back for H855,676 (Previous year Nil).
NOTE 4 RELATED PARTY DISCLOSURES
Pursuant to the Accounting Standard on "Related Party Disclosure" (AS
18) notifed by Companies (Accounting Standards) Rules, 2006, the
following persons are considered as related persons for the year ended
on March 31, 2014.
1 Related Parties and Nature of Relationship
a) The Parties over which significant infuence is exercised :
Names Relationship
Aksharchem (India) Ltd One or more directors are director
Skyjet Aviation Pvt Ltd One or more directors are director
Skyways One or more directors are trustee
Asahi Energy Pvt Ltd One or more directors are director
Asahi Powertech Pvt Ltd One or more directors are director
Flyover Communication Pvt Ltd One or more directors are director
Akshar Silica Pvt. Ltd One or more directors are director
b) Key Management Personnel and their Relatives:
Names Relationship
Mrs. Paru M. Jaykrishna Chairperson and Managing Director
Mr. Gokul M. Jaykrishna Joint Managing Director
Mr. Munjal M. Jaykrishna Joint Managing Director
Mr. Mrugesh Jaykrishna Spouse of the Chairperson and Managing Director
and Father of Joint Managing Directors
NOTE 5 ACCOUNTING FOR TAX ON INCOME
Provision for current tax is made under normal computation. Provision
of Income Tax has been made in the accounts taking into consideration
various concessions available and depreciation under the Income Tax Act
1961. MAT Credit entitlement has been treated as advance payment of
Tax.
NOTE 6 IMPAIRMENT OF ASSETS
No material impairment of Assets has been identified by the Company and
as such no provision is required as per Accounting Standard 28 issued
by The Institute of Chartered Accountants of India.
NOTE 7
Previous year''s figures have been regrouped / reclassified, wherever
necessary to make them comparable with the figures of the current year
financial statements.
Mar 31, 2013
NOTE 1 SUNDRY DEBTORS, SUNDRY CREDITORS AND LOANS AND ADVANCES
The Company has received balance confirmations from major parties and
for few exceptions, the management is in the opinion that the current
assets, loans and advances have a value on realization in ordinary
course of business at least equal to the amount at which they are
stated.
NOTE 2 SEGMENT REPORTING
The Company has only one identified reportable business segment namely
"Pigments" and does not fall under secondary segment for the purpose of
Accounting Standard on "Segment Reporting" (AS 17) notified by
Companies (Accounting Standards) Rules, 2006.
NOTE 3 ACCOUNTING FOR TAX ON INCOME
Provision for current tax is made under normal computation. Provision
of Income Tax has been made in the accounts taking into consideration
various concessions available and depreciation under the Income Tax Act
1961. MAT Credit entitlement has been treated as advance payment of
Tax.
NOTE 4 IMPAIRMENT OF ASSETS
No material impairment of Assets has been identified by the Company and
as such no provision is required as per Accounting Standard 28 issued
by The Institute of Chartered Accountants of India.
NOTE 5
Previous year''s figures have been regrouped / reclassified, wherever
necessary to make them comparable with the figures of the current year
financial statements.
Mar 31, 2012
A. Terms / rights attached to Equity Shares
The Company has issued only one class of equity shares having a par
value of Rs. 10 per share. Each holder of Equity Shares are entitled to
one vote per share. The Company declares dividend in Indian rupees. The
dividend proposed by the Board of Directors is subject to the approval
of the shareholders at the Annual General Meeting, except in case of
interim dividend. In the event of liquidation of the Company, the
holders of equity shares will be entitled to receive the realised value
of the assets of the Company, remaining after the payment of all
preferential dues. The distribution will be in proportion to the number
of equity shares held by the shareholders.
b. 1. Aggregate number and class of shares allotted as fully paid up
pursuant to contracts without payment being received in cash: NIL
2. Aggregate number and class of shares allotted as fully paid by way
of Bonus Shares : In the Financial year 2006-07 38,42,420 Equity Shares
of Rs. 10/- each were allotted as fully paid up Equity Shares by way of
Bonus Shares at the ratio of 1:1 by capitalization of General Reserve.
3. Aggregate number and class of shares bought back: NIL
a. Secured loans are covered by:
1. Term Loans from State Bank of India are secured by Equitable
Mortgage of Land and Buildings and a first charge by way of
hypothecation of the whole of the movable properties of the company
including its movable plant & machinery, stores, tools & accessories,
present & future and other movables save & except book debts & current
assets and further secured by personal guarantee of Joint Managing
Directors of the Company.
Rupee Term loan of Rs. 74,754,584/- outstanding in the previous year
was repaid for Rs. 15,000,000/- and balance amount was converted into
Foreign Currency Term Loan for US$ 1,160,000/- and repaid US$ 334,000/-
balance for US$ 826,000/- shown as foreign currency loan see - 2 below:
2. Foreign Currency Term Loan US$ 826,000 @ exchange rate of Rs.50.87
Per. US$ = Rs.42,018,620 (Previous year Nil)
3. Vehicle loans are secured by hypothecation of vehicles purchased.
b. Repayment terms of outstanding long term borrrowings as on March
31, 2012
1. There was no default in repayment of loan or interest.
2. Repayment terms of secured term loan in Indian Rupee Borrowings
Amount payable within 12 Months Rs. 30,000,000/- (Previous year Rs.
30,000,000/-). Current year term loan outstanding is repayable by
balance 11 quarterly installments of Rs. 7,500,000/- and last 12th
installment for balance amount. Previous year Term loan is converted
into Foreign Currency Term loan. See - 3. below.
3. Repayment terms of secured term loan in Foreign Currency (US$)
Borrowings
Amount payable within 12 Months US$ 668,000/- = Rs. 33,981,160/-
(Previous year US$ Nil = Rs. Nil). This term loan is repayable by 4
quarterly installments of US$ 167,000/- and last 5th quarterly
Installment of US$ 158,000/-.
4. Repayment terms of Vehicle Loan
Vehicle loans are repayable in equal monthly instatement over the terms
of loan ranging from 3 to 5 years.
* Secured loans are secured by hypothecation of raw materials, finished
goods, stock in process and book debts, other current assets of the
Company and personal guarantee of Joint Managing Directors of the
Company.
Note: 1
The Revised Schedule VI as notified under the Companies Act, 1956 has
become applicable to the Company effective from April 1, 2011 for the
presentation made in the financial statements. The adoption of the
revised Schedule VI requirements has significantly modified the
presentation and disclosures which have been complied with in these
financial statements. Previous year figures have been reclassified in
accordance with current year requirements.
Note: 2. CONTINGENT LIABILITIES (Amount in Rupees)
Particulars March 31,
2012 March 31,
2011
1 Letter of Credit and Bank
Guarantees issued by bankers and
outstanding at the end of the
year 72,510,202 42,341,546
2 Estimated Value of Contracts
/ purchase orders pending
for Capital goods /
Capital work in progress 28,886,241 86,182,503
3 In respect of Income Tax 14,379,708 9,959,364
Name of Statute: Income Tax
Act, 1961
Nature of the dues: Income
tax (A.Y. 2001-02 to 2011-12)
Forum where dispute is pending : Commissioner of Income Tax (Appeal)
/ITAT / High-Court Note: 32. SUNDRY DEBTORS, SUNDRY CREDITORS AND LOANS
AND ADVANCES
The Company has received balance confirmations from major parties and
for few exceptions, the management is in the opinion that the current
assets, loans and advances have a value on realization in ordinary
course of business at least equal to the amount at which they are
stated.
Note: 3. EMPLOYEES BENEFITS
In compliance with the Accounting Standard on "Employee Benefits" (AS
15) (Revised 2005) notified by Companies (Accounting Standards) Rules,
2006, the following disclosures have been made:
Note: 4. SEGMENT REPORTING
The Company has only one identified reportable business segment namely
ÃPigments" and does not fall under secondary segment for the purpose
of Accounting Standard on ÃSegment Reporting" (AS 17) notified by
Companies (Accounting Standards) Rules, 2006.
Note: 5. RELATED PARTY DISCLOSURES
Pursuant to the Accounting Standard on ÃRelated Party Disclosure" (AS
18) notified by Companies (Accounting Standards) Rules, 2006, the
following persons are considered as related persons for the year ended
on March 31, 2012.
Note: 6. ACCOUNTING FOR TAX ON INCOME
Provision for current tax is made under normal computation. Provision
of Income Tax has been made in the accounts taking into consideration
various concessions available and depreciation under the Income Tax Act
1961. MAT Credit entitlement has been treated as advance payment of
Tax.
Note: 7. IMPAIRMENT OF ASSETS
There are no indications which reflects that any of the assets of the
Company has got impaired from its potential use and therefore no
impairment loss was required to be accounted in the current year as per
Accounting Standard on "Impairment of Assets" (AS 28) notified by the
Companies (Accounting Standards) Rules, 2006.
Note: 8.
Previous year's figures have been regrouped / reclassified, wherever
necessary to make them comparable with the figures of the current year
financial statements.
Mar 31, 2011
1. Contingent Liabilities
As at As at
31/03/2011 31/03/2010
Rs. Rs.
1. Letter of Credit and Bank Guarantees
issued by 42,341,546 Ã
bankers and outstanding as on 31.03.2011
2. Bills discounted against LC Pending
Realization à 2,593,001
3. Estimated Value of Contracts / purchase
orders pending 86,182,503 18,134,719
for Capital goods / Capital work in progress
4. Contingent Liabilities not provided for :
Claims against the Company not acknowledge as debts:
Name of the Nature of Amount Forum where
statute Dues in Rs. Dispute is Pending
Income Tax Act Income Tax 9,959,364/- Commissioner of
Income Tax
(A.Y. 2000-01 to
2008-09) (10,240,196/-) (Appeals) / ITAT /
High Court
2. Sundry Debtors, Sundry Creditors and Loans and Advances
a. The Company has received balance confirmations from major parties
and for few exceptions, the management is in the opinion that the
current assets, loans and advances have a value on realization in
ordinary course of business at least equal to the amount at which they
are stated.
b. There are no Micro, Small & Medium Enterprises to whom the company
over dues, which are outstanding for more than 45 days as at 31st
March, 2011. This information is disclosed under the Micro, Small &
Medium Enterprises Development Act, 2006 which has been determined to
the extent such parties have been identified on the basis of the
information available with the company.
D. The Ministry of Corporate Affairs, Government of India vides its
General Notification No. S.O. 301(E) dated 8th February 2011 issued
under section 211 (3) of the companies Act, 1956 has exempted certain
classes of companies from disclosing certain information in their
profit & loss account. The company being an "Export Oriented Company"
is entitled to the exemption. Accordingly, disclosures mandated by
paragraphs 3(i) (a),3(ii) (a), 3(ii) (b) and 3(ii) (d) of part II,
Schedule VI to the Companies Act, 1956 have not been provided.
f) The company to hedge it's exports business, books forward contracts.
As on 31st March, 2011, outstanding forward contracts amounts to
equivalents of Rs. 3,225.76 Lacs.
7. Employees Benefits
The disclosures required under accounting standard 15 "Employees
Benefits" notified in the Companies (Accounting Standards) rules, 2006
is given below:
1. Defined Contribution Plan:
The Company has recognized the following amount as an expense and
included in the Schedule 16 Ã "Payments to and Provisions for
Employee".
2. Defined Benefit Plan
The present value of gratuity and leave encashment obligations is
determined based on actuarial valuation using the Projected Unit Credit
Method as recommended under Accounting Standard à 15.
8. Segment Reporting
The Company has only one segment namely "Pigments" and does not fall
under secondary segment. In view of this, details of segment
information is not required to be given as per AS-17 Segment Reporting
issued by the Institute of Chartered Accountants of India.
9. Related Party Disclosures
1. Related Parties and Nature of Relationship
a) The Parties over which significant influence is exercised :
Names Relationship
Aksharchem (India) Ltd One or more directors are director
Skyjet Aviation Pvt Ltd One or more directors are director
Skyways One or more directors are trustee
Asahi Energy Pvt Ltd One or more directors are director
Asahi Powertech Pvt Ltd One or more directors are director
Flyover Communication Pvt Ltd One or more directors are director
Akshar Silica Pvt. Ltd One or more directors are director
b) Key Management Personal and their Relatives:
Names Relationship
Mrs. Paru M. Jaykrishna Chairperson and Managing Director
Mr. Gokul M. Jaykrishna Joint Managing Director
Mr. Munjal M. Jaykrishna Joint Managing Director
Mr. Mrugesh Jaykrishna Spouse of the Chairperson and Managing
Director and Father of Joint Managing Directors.
11. Accounting for Tax on Income
i) Provision for current tax is made under normal computation.
Provision of Income Tax has been made in the accounts taking into
consideration various concessions available and depreciation under the
Income Tax Act 1961. MAT Credit entitlement has been treated as advance
payment of Tax.
12. Previous year's figures have been regrouped / reclassified,
wherever necessary to make them comparable with the figures of the
current year financial statements.
13. Amounts represented in lacs have been rounded off to the nearest
two decimals points.
Mar 31, 2010
1. Contingent Liabilities
As at As at
31/03/2010 31/03/2009
Rs. Rs.
1. Letter of Credit and Sank Guarantees issued by NIL NIL
bankers and outstanding as on 31.03.2010
2. Bills discounted against LC credited to
debtors account. 2,593,001 Nil
3. Estimated Value of Contracts / purchase
orders pending for 18,134,719 2,473,250
Capital goods / Capital work in progress
4. Contingent Liabilities not provided for:
Claims against the Company not acknowledge as debts:
2. Sundry Debtors, Sundry Creditors and Loans and Advances
a. The Company has received balance confirmations from major parties
and for few exceptions, the management is in the opinion that the
current assets, loans and advances have a value on realization in
ordinary co_urse of business at least equal to the amount at which they
are stated.
b. There are no Micro, Small & Medium Enterprises to whom the company
over dues, which are outstanding for more than 45 days as at 31st
March, 2010. This information is disclosed under the Micro, Small &
Medium Enterprises Development Act, 2006 which has been determined to
the extent such parties have been identified on the bases of the
information available with the company.
3. Managerial Remuneration
Managerial remuneration under Section 198 of the Companies Act, 1956
paid or payable during the financial year to the Directors and
Computation of Net Profit in accordance with Section 198(1) and Section
349 of the Companies Act, 1956 are as under:
4. Segment Reporting
The Company has only one segment namely "Pigments" and does not fatl
under secondary segment. In view of this, details of segment
information is not required to be given as per AS-17 Segment Reporting
issued by the Institute of Chartered Accountants of India.
5. Accounting for Tax on Income
i) Provision for current tax is made under normal computation.
Provision of Income Tax has been made in the accounts taking into
consideration various concessions available and depredation under the
Income Tax Act 1961.
ii) The Deferred tax liability comprises of Tax effect of Timing
difference on account of :
6. Previous years figures have been regrouped / reclassified,
wherever necessary to mate them comparable with the figures of the
current year financial statements.
7. Amounts represented in lacs have been rounded off to the nearest
two decimals points.