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Notes to Accounts of Asahi Songwon Colors Ltd.

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, 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.

 
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