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Notes to Accounts of Ashok Alco-Chem Ltd.

Mar 31, 2015

1. The company has issued only one class of shares referred to as Equity shares having a par value of Rs. 10/-. Each holder of equity shares is entitled to one vote per share.

2. Contingent Liabilities and Commitments:

a) Contingent Liabilities not provided for in respect of:

Sr. Particulars 2014 - 2015 2013 - 2014 No.

1. Income Tax matters 1,54,43,399 43,24,222

2. Sales Tax 13,96,998 13,96,998

3. Excise/Service Tax matters NIL 3,75,855

Total 1,68,40,397 60,97,075

3. In the opinion of the Board of Directors of the Company, the Current Assets, Loans and Advances are approximately of the value stated in the Balance Sheet, if realized in the ordinary course of Business.

4. The Company has provided for gratuity to employees based on the actuarial valuation report. However the said Liabilities aggregating to Rs. 5.76 lacs are not funded.

5. Segment Reporting Business Segment

The company is having two Business Segments viz. Chemical Division (Manufacturing) and Global Trading Division.

6. Related PartyTransactions :

A. Holding Company:

Aura Alkalies and Chemicals Private Limited

B. Key Management Personnel:

Mr. Sridhar Chari - Whole Time Director

Mr. Shashidharan V. - Chief Financial Officer

Mrs.Seema Gangawat - Company Secretary & Compliance Officer

C. Relatives of Key Management Personnel: NIL

7. Consequent to the enactment of the Companies Act, 2013 (the Act) and its applicability for the accounting period commencing after 1 April, 2014, the Company has reviewed and revised the estimated useful lives of its Fixed Assets, generally in accordance with the provisions of Schedule II of the Act. Consequent to change of useful life an amount of Rs. 3,36,511/- (net of deferred tax Rs. 1,65,744/-) representing WDV of those assets whose useful life had already expired as on 1st April, 2014 has been adjusted against the General Reserve. Had there been no change, depreciation charges for the year ended 31st March, 2015 would have been higher by Rs. 26,91,876/- and profit would have been lower by Rs.26,91,876/- for the year.

8. DeferredTax :

Considering the market trend for Company's product and Management's perception on future outlook of the Company, the Deferred Tax Surplus for current year is accounted to Profit & Loss Account. The deferred tax adjustment in terms of Accounting Standard 22 is assessed out on the basis of following timing differences.

9. The Company has not received information from vendors regarding their status under the Micro, Small and Medium Enterprises Development Act, 2006 and hence disclosure relating to amount unpaid at the year end together with interest paid/ payable under this Act, has not been given.

10. The Management of the Company has, during the year, carried out technological evaluation for identification of impairment of assets, if any, in accordance with the Accounting Standard (AS)-28 issued by the Institute of Chartered Accountants of India. Based on the judgment of the Management and as certified by the Directors, no provision for impairment is found to be necessary in respect of any of the assets.

11. Remuneration includes Rs. 35.62 Lacs (P.Y. Rs. 29.48 lacs) paid to Whole Time Director.

12. Capacities, Production, Stocks and Sales : (As Certified by the Management)

Notes : ( i) Figures in brackets are in respect of the previous year.

(ii) Sales includes Excise Duty and Sales Tax

(iii) Loss / Gain of goods and captive consumption during the year are adjusted in sales quantity.

13. The Company had in the previous year, issued, 4,50,000 convertible equity warrants of Rs. 30 each to Aura Alkalies and Chemicals Private Limited (Promoter Group) on preferential basis . These warrants were converted into 4,50,000 equity shares at Rs 10 each and at a premium of Rs 20 during the current financial year.

14. Balances for Trade Payables, Trade Receivables, Loans and Advances are subject to confirmations from the respective parties and reconciliations, if any, in many cases. In absence of such confirmations, the balances as per books have been relied upon by the auditors.

15. Previous year's figures have been regrouped/recast wherever necessary to correspond with the current year's classification disclosure.


Mar 31, 2014

1. Contingent Liabilities:

Contingent Liabilities not provided for in respect of:

Sr. Particulars 2013-2014 2012-2013 No. Rs. Rs.

1. Income Tax matters 43,24,222 3,99,38,826

2. Sales Tax 13,96,998 13,96,998

3. Excise/Service tax matters 3,75,855 10,35,125

Total 60,97,075 4,23,70,949

2. In the opinion of the Board of Directors of the Company, the Current Assets, Loans and Advances are approximately of the value stated in the Balance Sheet, if realised in the ordinary course of Business.

3. The provision for doubtful debts continues at an amount of Rs. 1056.35 Lacs (P. Y.1056.35 Lacs). In the opinion of the management these debts have not become bad and they are hopeful of recovery of the amount.

4. The Company has provided for Gratuity to employees based on the actuarial valuation report. However the said liabilities aggregating to Rs. 9.59 are not funded.

5. Related Party Transactions :

A. Associate Concerns :

- Aura Alkalies and Chemicals Private Limited

B. Key Management Personnel and Relatives :

- Sridhar Chari - Whole Time Director

6. The Company has not received information from vendors regarding their status under the Micro, Small and Medium Enterprises Development Act, 2006 and hence disclosure relating to amount unpaid at the year end together with interest paid/ payable under this Act, has not been given.

7. Balances for Trade Payables, Trade Receivables, for Loans and Advances are subject to confirmations from the respective parties and reconciliations, if any, in many cases. In absence of such confirmations, the balances as per books have been relied upon by the auditors.

8. The Management of the Company has, during the year, carried out technological evaluation for identification of impairment of assets, if any, in accordance with the Accounting Standard (AS)-28 prescribed under the Companies (Accounting Standards)Rules, 2006. Based on the judgement of the management and as certified by the Directors, no provision for impairment is found to be necessary in respect of any of the assets.

9. The Company has during the year issued 3,75,000 convertible Equity Warrants of Rs.10 each to Aura Alkalies and Chemicals Private Limited a body corporate under the promoters group on preferential basis at a premium of Rs.20 per share/ warrant. These warrants are convertible into one equity share against each warrant within a period of 18 months from the date of the issue.

10. Remuneration includes Rs.36.32 Lacs paid to Whole Time Director (P.Y. Rs. 16.29 Lacs paid to Managing Director upto 26.11.2012 and a Whole Time Director).

Notes: (i) Figures in brackets are in respect of the previous year. (ii) Sales includes Excise Duty and Sales Tax. (iii) Loss / Gain of goods and captive consumption during the year are adjusted in sales quantity.

11. Previous year''s figures have been regrouped/recast wherever necessary to correspond with the current year''s classification disclosure.


Mar 31, 2013

1. Contingent Liabilities:

Contingent Liabilities not provided for in respect of:

Sr. Particulars 2012-2013 2011-2012 No. Rs. Rs.

1. Income Tax matters 3,99,38,826/- NIL

2. Sales Tax 13,96,998/- 13,96,998/-

3. Excise/Service tax matters 10,35,125/- 5,85,376/-

4. Bank Guarantee NIL 7,22,300/-

Total 4,23,70,949/- 27,04,674/-

2. In the opinion of the Board of Directors of the Company, the current assets, loans and advances are approximately of the value stated in the Balance Sheet, if realised in the ordinary course of business.

3. The provision for doubtful debts continues at an amount of Rs. 1056.35 Lacs (P.Y. Rs. 1056.35 Lacs). In the opinion of the management these debts have not become bad and they are hopeful of recovery of the amount.

4. The Company has provided for Gratuity to Employees based on the actuarial valuation report. However the said Liabilities aggregating to Rs. 3.95 Lacs are not funded.

5. Related Party Transactions (upto 26.11.2012):

A. Associate Concerns:

- Kumaka Industries Limited (Formerly Known as Ashok Organic Industries Limited)

- Kadakia Alkalies & Chemicals Limited

- Ashok Cellulose Limited

- Ashok Chem Pharma International

- USM Enterprise

- Aqua Alco Bio-Tech Pvt. Ltd.

- Ashok Pharmaceuticals Pvt. Ltd.

- Ashok & Brothers, Ashok M. Kadakia HUF

- Anil M. Kadakia HUF

- Pankaj M. Kadakia HUF

- Aura Alkalies and Chemicals Private Limited

B. Key Management Personnel and Relatives:

- Dr. Anil M. Kadakia (resigned on 26.11.2012)

C. Relatives of Key Management Personnel:

- Mrs. Urvashi Ashok Kadakia Proprietor of Raj Enterprises (Wife of Mr. Ashok M. Kadakia)

- Mrs. Shobhana Anil Kadakia (Wife of Dr. Anil M. Kadakia)

6. The Company has not received information from vendors regarding their status under the Micro,Small and Medium Enterprises Developement Act, 2006 and hence, disclosure relating to amounts unpaid as at the year -end together with interest paid/ payable under this Act have not been given.

7. The Management of the Company has, during the year, carried out technological evaluation for identification of impairment of assets, if any, in accordance with the Accounting Standard (AS)-28 issued by the Institute of Chartered Accountants of India. Based on the judgment of the Management and as certified by the Directors, no provision for impairment is found to be necessary in respect of any of the Assets.

8. Remuneration includes Rs.16.29 Lacs (P.Y. Rs. 23.93 Lacs) paid to Managing Director upto 26th November, 2012 and a whole time Director.


Mar 31, 2012

1. The company has not made provision for interest on sales tax assessment dues of earlier years aggregating to Rs.66,67,265/-which has resulted in the profit for the year and Reserves and Surplus being overstated by the said amount.

2. The company has entered into transactions with concern in which Managing Director is interested and has not complied with the provisions of section 297 under the Companies Act, 1956 and the purchases amounts to Rs. 23,76,115/- and sales amounts to Rs. 31,50,760/-

3. Contingent Liabilities:

Contingent Liabilities not provided for in respect of:

Sr. Particulars 2011 - 2012 2010 - 2011 No.

1. Income Tax matters NIL 1,49,57,630/-

2. Sales Tax 13,96,998/- 80,64,263/-

3. Excise/Service tax matters 5,85,376/- 5,85,376/-

4. Bank Guarantee 7,22,300/- NIL

Total 27,04,674/- 2,36,07,269/-

4. Capital Commitments:

Estimated amount of contracts remaining to be executed on capital account and not provided for amounts to Rs. 2,90,77,155/- (Rs. NIL)

5. In the opinion of the Board of Directors of the Company, the current assets, loans and advances are approximately of the value stated in the Balance Sheet, if realized in the ordinary course of business.

6. Assets under Operating Leases:

The Company has taken on operating lease certain assets. The total lease rent paid on the Immovable Equipments amounts to Rs. 35,57,746/- and the amount amortized on leased land amounts to Rs. 12,677/-

7. The provision for doubtful debts continues at an amount of Rs. 1056.35 Lacs (RY1056.35 iacsj. In the opinion of the management these debts have not become bad and they are hopeful of recovery of the amount.

8. The company has provided for gratuity to employees based on the actuarial valuation report. However they said liabilities aggregating to Rs. 13.51 are not funded. We have been informed by the management that Life Insurance Corporation of India has permitted to remit the said dues within a span of twelve months starting from March, 2012.

9. Related Party Transaction :

A. Associate Concerns :

- Kumaka Industries Limited ( Formerly Known as Ashok Organics Limited)

- Kadakia Alkalies & Chemicals Limited

- Ashok Cellulose Limited

- Ashok Chem Pharma International

- USM Enterprise

- Aqua Alco Bio-tech Pvt. Ltd.

- Ashok Pharmaceuticals Pvt. Ltd.

- Ashok & Brothers, Ashok M Kadakia HUF

- Anil M Kadakia HUF

- Pankaj M Kadakia HUF

- Aura Alkalies and chemicals private Limited

B. Key Management Personnel and Relatives :

- Dr. Anil M. Kadakia

C. Relatives of Key Management Personnel :

- Mrs. Urvashi Ashok Kadakia Proprietor of Raj Enterprises (Wife of Mr. Ashok M. Kadakia)

- Mrs. Shobhana Anil Kadakia (Wife of Dr. Anil M. Kadakia)

10. The Management of the Company has, during the year, carried out technological evaluation for identification of impairment of assets, if any, in accordance with the Accounting Standard (AS)-28 issued by the Institute of Chartered Accountants of India. Based on the judgment of the Management and as certified by the Directors, no provision for impairment is found to be necessary in respect of any of the assets.

11. Remuneration includes Rs.23.93 Lacs (P.Y. Rs. 24.00 lacs) paid to Managing Director.

12. The Revised Schedule VI has become effective from 1st April, 2011 for the preparation of financial statements. This has significantly impacted the disclosure and presentation made in the financial statements. Previous year's figures have been regrouped/recast wherever necessary to correspond with the current year's classification disclosure.


Mar 31, 2010

1. Figures for previous year have been re-grouped wherever necessary.

2. Contingent Liabilities not provided for in respect of :

(Amount in Rupees)

Sr. Particulars 2009-10 2008-09

No.

I Income-tax matters 1,49,57,630/- 2,15,67,630/-

II Excise matters Nil 27,220/- III Labour matters 4,40,000/- 4,40,000/-

Total : 1,53,97,630/- 2,20,34,850/-

Note : Company is seeking legal remedy in the form of appeal and alternate redressal in respect of liabilities listed above.

3. In the opinion of the Board of Directors of the Company, the current assets, loans and advances are approximately of the value stated in the Balance Sheet, if realised in the ordinary course of business.

4. The provision for doubtful debts continues at an amount of Rs 1056.35 Lacs(P.Y.1056.35 lacs) In the opinion of the management these debts have not become bad and they are quite hopeful of recovery of the amount.

5. Unclaimed dividend amounting to Rs 2,72,924 /- remaining unpaid even after the stipulated period of seven year is not deposited in Investor Education and Protection Fund, as the same is yet to be reconciled.

6. The Company,s reference made to BIFR u/s 15(1) of the Sick Industrial Companies(Special Provisions) Act, 1985 , registered under reference no 291/2003 has been dismissed by the Bench as non-maintainable on account of networth of the company being positive.

Note: Previous year figures have not been given in the above statement in view of adoption of AS 17 Segment Reporting by the Company for the first time.

OTHE DISCLOSURES

1. Segments have been identified in line with the Accounting Standard on Segment Reporting (AS-17) taking into account the organization structure as well as the differential risks and returns of these Segments.

2. The Company has disclosed Manufacturing segment as the primary segment.

4. The Segment Revenue, Results, Assets and Liabilities include the respective amounts identifiable to each of the segment and amounts allocated on a reasonable basis.

7. Related Party Transaction :

As required by Accounting Standard - AS - 18, "Related Parties Disclosure" issued by the Institute of Chartered Accountants of India, the details are as follows:

List of Related parties are as under (more than 20% controlled by the Directors and Relatives):

A. Associate Concerns :

- Ashok Organic Industries Limited

- Kadakia Alkalies & Chemicals Limited

- Ashok Cellulose Limited

- Ashok Chem Pharma International

- USM Enterprise

- Devjagan Salt Farm Pvt. Ltd.

- Aqua Alco Bio-tech Pvt. Ltd.

- Ashok Pharmaceuticals Pvt. Ltd.

- Ashok & Brothers, Ashok M Kadakia HUF

- Anil M Kadakia HUF

- Pankaj M Kadakia HUF

B. Key Management Personnel and Relatives :

- Dr. Anil M. Kadakia

- Mr. Pankaj M. Kadakia

C. Relatives of Key Management Personnel :

- Mrs. Urvashi Ashok Kadakia Proprietor of Raj

Enterprises (Wife of Mr. Ashok M. Kadakia)

- Mrs. Shobhana Anil Kadakia (Wife of Dr. Anil M. Kadakia)

- Mrs. Madhavi Pankaj Kadakia (Wife of Mr. Pankaj M. Kadakia)

8. As required by the notification no. GSR 129 (E) dated 22nd February, 1999 issued by the Department of Company Affairs, Ministry of Law, Justice and Company Affairs and based on the information available with the Company in respect of the status of the suppliers, a sum of Rs.11,36,645/- is due and is included in "Sundry Creditors". The Company has not received any claim for interest from the suppliers covered by the said provisions. The suppliers covered by the said provisions to whom the Company owes more than Rs.1 lac for more than 30 days as at 31st March, 2010 are : Maldar Barrels Pvt. Ltd., and Renu Engineering Industries.

9. The Management of the Company has, during the year, carried out technological evaluation for identification of impairment of assets, if any, in accordance with the Accounting Standard (AS) -28 issued by the Institute of Chartered Accountants of India. Based on the judgment of the Management and as certified by the Directors, no provision for impairment is found to be necessary in respect of any of the assets.

10. The Company has not received information from Vendors regarding their status under micro, small and medium Enterprise Development Act, 2006 and hence disclosure relating to amount unpaid as at the year end together with interest paid / payable under this account have not been given.

11. Remuneration includes Rs.18 Lacs (P.Y. Rs. 17.90 lacs) paid to Managing Director.

Notes : (i) Figures in brackets are in respect of the previous year.

(ii) Sales includes Excise Duty, Sales Tax and Foreign Exchange Loss

(iii) Loss / Gain of goods and captive consumption during the year is adjusted in sales quantity.

(iv) Installed Capacities are as certified by management.

Note: Values are inclusive of incidental expenses like transport, freight etc.

12. Previous Years Figures have been regrouped / recast wherever necessary. Figure have been rounded of to the nearest rupee.

 
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