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Notes to Accounts of Bhagiradha Chemicals & Industries Ltd.

Mar 31, 2014

1. CONTINGENT LIABILITIES Rs in lakhs As at As at Particulars 31.03.2014 31.03.2015

a. Estimated amount of Contracts remaining to be executed on Capital account and not provided for, net of advances 50.08 356.68

b. Contingent Liabilities not provided for:

- Letters of Credit 1,669.07 6.64

- Bank Guarantees 23.00 11.00

2. In the opinion of the Management and to the best of their knowledge and belief the value of the realization of Current Assets, loans and advances in the ordinary course of business would not be less than the amount of which they are stated in the Balance Sheet. The provision for depreciation and for all the known liabilities is adequate and not in excess of what is required.

3. Segment Reporting

There are no separate reportable segments as per Accounting Standard 17, as the entire operations of the company relate to one segment, viz. Agrochemicals.

4. Related Party Transactions

Disclosure in respect of related parties as defined in Accounting Standard 18 with whom transactions have taken place during the year are given below:

a) List of Related Parties:

(i) Key Management Personnel

Shri S. Chandra Sekhar, Managing Director

Shri D. Sadasivudu, Executive Director (upto 31.08.2012)

(ii) Related party:

Nagarjuna Agrichem Limited

5. Employee benefits

a. Defined benefit plans

The following table sets forth the status of the Gratuity Plan and Leave encashment of the Company and the amounts recognised in the Balance Sheet and Statement of Profit and Loss.

b. Defined contribution plans

In respect of defined contribution plans, an amount of Rs.30.28 lakhs (Rs. 27.08 lakhs) towards gratuity has been recognised as an expense in the Statement of Profit and Loss during the year.

6. Earnings Per Share

Earning per share is calculated by dividing the profit attributable to the equity share holders by the weighted average number of equity shares outstanding during the year. The basic and diluted EPS per equity share is given hereunder:

7. The company has provided deferred tax liability/ (income) of Rs. (4,781,410/-) for the current year (Previous year net deferred tax liability Rs. 7,574,916/-) as per the Accounting Standard 22. Break up of deferred tax liabilities and reconciliation of current year deferred tax charge / income are given below:

8. a) The Company uses Forward Exchange Contracts to hedge its risks associated with foreign currency fluctuations relating to certain firm commitments and forecasted transactions. The Company does not enter into any such instruments for trading or speculative purpose.


Mar 31, 2013

1. Contingent Liabilities Rs. in lakhs

Particulars As at As at 31.03.2013 31.03.2012

a. Estimated amount of Contracts remaining to be executed on Capital account and not provided for, net of advances 356.68 36.97

b. Contingent Liabilities not provided for:

- Letters of Credit 6.64 887.91

- Bank Guarantees 11.00 10.60

2. In the opinion of the Management and to the best of their knowledge and belief the value of the realization of Current Assets, loans and advances in the ordinary course of business would not be less than the amount of which they are stated in the Balance Sheet. The provision for depreciation and for all the known liabilities is adequate and not in excess of what is required.

3. Segment Reporting

There are no separate reportable segments as per Accounting Standard 17, as the entire operations of the company relate to one segment, viz. Agrochemicals.

4. Related Party Transactions

Disclosure in respect of related parties as defined in Accounting Standard 18 with whom transactions have taken place during the year are given below:

a) List of Related Parties:

(i) Key Management Personnel

Sri S. Chandra Sekhar, Managing Director (from 01.06.2012) Sri D. Sadasivudu, Executive Director (upto 31.08.2012)

(ii) Associates

Nagarjuna Agrichem Limited

5. Figures of the previous year have been regrouped/rearranged wherever considered necessary to confirm to the current year presentation or classification.


Mar 31, 2012

1. CONTINGENT LIABILITIES Rs. in lakhs

As at As at Particulars 31.03.2012 31.03.2011

a. Estimated amount of Contracts remaining to be executed on Capital account and not provided for, net of advances 36.97 114.70

b. Contingent Liabilities not provided for:

Letters of Credit 887.91 389.61

Bank Guarantees 10.60 54.30

2. In the opinion of the Management and to the best of their knowledge and belief the value of the realization of Current Assets, loans and advances in the ordinary course of business would not be less than the amount of which they are stated in the Balance Sheet. The provision for depreciation and for all the known liabilities is adequate and not in excess of what is required.

3. During the year entire manufacturing activities of the company were temporarily shut down due to major fire broke out in Block-III of the company for 50 Days from 10th August, 2011 and operation in Block – I & II has been restarted from 29.09.2011.

4. Due to major fire in Block – III, (which has manufacturing facility of Clodinafop, Cloquintocet Mexyl, Thiamathoxam) Factory Building, Plant & Equipment, Electricals & Stock in Process was damaged. The company is adequately insured under cost of Reinstatement policy of Assets. During the year company has received final claim of Rs. 540.01 Lakhs on account of damage. The company has made the provisions/adjustments in books of account under the head Extra Ordinary Items towards insurance claim (Net)

5. The Company was Manufacturing Triclopyr, Fluroxypr, Clodinafop and Cloquintocet Mexyl under the 100% EOU Scheme. The company has got approval to exit from the 100% EOU Scheme from the "office of the Assistant commissioner of Customs & Central Excise". Now total plant is operating under DTA.

6. Segment Reporting

There are no separate reportable segments as per Accounting Standard 17, as the entire operations of the company relate to one segment, viz., Agrochemicals.

7. Related Party Transactions

Disclosure in respect of related parties as defined in Accounting Standard 18 with whom transactions have taken place during the year are given below:

8. a) The Company uses Forward Exchange Contracts to hedge its risks associated with foreign currency fluctuations relating to certain firm commitments and forecasted transactions. The Company does not enter into any such instruments for trading or speculative purpose.

9. During the year ended 31st March, 2012 the revised Schedule VI notified under the Companies act, 1956 has become applicable to the company, for preparation and presentation of its financial statements. The adoption of revised Schedule VI does not impact recognition and measurement principles followed for preparation of financial statements. However, it has impact on presentation and disclosures made in the financial statements. The Company has also reclassified the previous years figures in accordance with the requirements applicable in the current year.


Mar 31, 2010

1. Contingent Liabilities not provided for: Rs. in lakhs

Particulars As at As at 31.03.2010 31.03.2009

i) Letters of Credit 271.18 136.68

ii) Export Bills Discounting - 110.19

iii) Bank Guarantees 28.86 23.86

2. SECURED LOANS

The working capital facilities are secured by hypothecation of the current assets of the company and further secured by a first charge on the fixed assets of the company and are personally guaranteed by the Managing Director and Executive Director of the company.

3. SALES TAX DEFERMENT

Government of Andhra Pradesh vide letter No.20/2/6/1369/ID dated 08-10-1996 and letter No.30/1/2002/0300/0300/FD dated 10-04-2002 had sanctioned sales tax deferment for an amount of Rs.91,854,000/- and Rs. 51,450,510/- respectively for a period of 14 years to the company in respect of chlorpyriphos plant. The sanction of Rs.91,854,000/- under letter No.20/2/6/1369/ID dated 08-10-1996 has expired its utilization on 28th February, 2010. The company has commenced the repayment as per the utilization and has paid Rs.140,800/- utilized in 1995-96.

Based on the sales tax returns the sales tax deferred till 31-03-2010 amounts to Rs. 38,919,538/-.

4. Micro small and medium enterprises

Sundry creditors as at 31st March 2010 includes an amount of Rs. 11.68 lakhs (Previous year Rs. 22.37 lakhs) outstanding for more than 45 days (but not overdue) to micro and small enterprises. The above disclosure is based on the information available with the company regarding the status of suppliers as defined under the Micro, Small and Medium Enterprises Development Act 2006.

5. Segment Reporting

There are no separate reportable segments as per Accounting Standard 17, as the entire operations of the company relate to one segment, viz. Agrochemicals.

6. EOU Unit

The company has commenced the manufacture of an additional product Cloquintocet Mexyl from June 30, 2009.

7. Related Party Transactions

Disclosure in respect of related parties as defined in Accounting Standard 18 with whom transactions have taken place during the year are given below:

a) List of Related Parties:

Key Management Personnel

- Sri S. Koteswara Rao, Managing Director

- Sri D. Sadasivudu, Executive Director

8. As per the directions of the Andhra Pradesh Pollution Control Board vide their order no. 204/PCB/TF-VJA/2000 dated 27-03-2010, the company is required to dispose off the Chlorpyriphos residue stored in drums to TDSF before 31-12-2010. The company has made provision for Rs. 250 lakhs in its Profit and Loss Account in respect of the same.

9. Figures of the previous year have been regrouped/rearranged wherever considered necessary to confirm to the current year presentation or classification.