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Notes to Accounts of Bharat Rasayan Ltd.

Mar 31, 2015

A) Rights, preferences and restrictions attached to Equity shares

The Company has one class of equity shares having a par value of Rs.10/- per share. Each shareholder is eligible for one vote per share held. In the event of liquidation, the equity shareholders are eligible to receive the remaining assets of the Company after distribution of all preferential amount, in proportion to their shareholding.

NOTE NO. - 1.1 As at As at 31.03.2015 31.03.2014

CONTINGENT LIABILITIES AND COMMITMENTS (Rs. in Lacs) (Rs. in Lacs)

NOT PROVIDED FOR IN RESPECT OF

i) Guarantees Given to:

- Addl. Excise & Taxation Commissioner, Panchkula - 5.00

- Dakshin Gujarat Vij Company Limited, Dahej, Gujarat 80.83 80.83

- Gujarat Pollution Control Board, Dahej, Gujarat 12.00 12.00

ii) Surety given to Dy. Excise & Taxation Commissioner (S.T. Rohtak) 8.16 8.16

iii) Surety given to Customs and Central Excise Commissioner, Jammu (J&K) 1,400.00 250.00

NOTE NO. - 1.2 : The Company is liable to pay income tax of Rs.15,27,38,697/- under normal tax provisions of Act for the year which was much more than the liability under MAT provisions. The Company has set off full amount of brought forwarderd MAT credit of Rs.76,63,597/- during the year.

NOTE NO. - 1.3 : RELATED PARTY TRANSACTIONS

As per Accounting Standard AS-18 issued by the Institute of Chartered Accountants of India, the Company's related parties with whom transactions executed during the year, are disclosed below :

a) Key Management Personnel & their Relatives

i) Shri S.N.Gupta Chairman & Managing Director

ii) Shri M.P.Gupta Whole Time Director

iii) Shri R.P.Gupta Whole Time Director

iv) Shri Ajay Gupta Executive Director

v) Shri V.K.Sharma Executive Director

vi) Smt. Sweety Gupta Wife of Shri S.N.Gupta

vii) Shri Dinesh Gupta Son of Shri S.N.Gupta

viii) Smt. Savita Gupta Wife of Shri M.P.Gupta

ix) Shri Vikas Gupta Son of Shri M.P.Gupta -

x) Smt. Manju Gupta Wife of Shri R.P.Gupta -

xi) Shri Sahil Gupta Son of Shri R.P.Gupta

b) Related Entities

i) Bharat Insecticides limited

ii) B R Agrotech Limited

iii) BRL Finlease Limited

iv) Centum Finance Limited

v) Synochem Organics Pvt. Limited

vi) S.N.Gupta & Sons (HUF)

vii) M.P Gupta & Sons (HUF)

viii) R.P Gupta & Sons (HUF)

NOTE NO. - 1.4 : As per Accounting Standard AS-20 on earning per share, issued by the Institute of Chartered Accountants of India, the earning per share of the Company is Rs.74.73 (Last Year Rs.47.42).


Mar 31, 2014

1.1 CONTINGENT LIABILITIES AND COMMITMENTS NOT PROVIDED FOR IN RESPECT OF :

As at 31.03.2014 (Rs. in Lacs)

i) Guarantees given to:

- Addl. Excise & Taxation Commissioner, Panchkula 5.00

- Dakshin Gujarat Vij Company Limited, Dahej, Gujarat 80.83

- Gujarat Pollution Control Board, Dahej, Gujarat 12.00 97.83

ii) Surety given to Dy. Excise & Taxation Commissioner (S.T.Rohtak) and Customs and Central Excise Commissioner, Jammu (J&K) 258.16

1.2 The Company is liable to pay income tax of Rs. 8,51,39,994/- under normal tax provisions of Act for the year. The Company has set off MAT of Rs.2,08,76,943/-from the brought forwarded MAT balance of Rs.2,85,40,540/- and carried forward for set off for next years Rs.76,63,597/- under the head Short Term Loans and Advances. The same has therefore not considered for current taxes.

1.3 RELATED PARTY TRANSACTIONS

As per Accounting Standard AS-18 issued by the Institute of Chartered Accountants of India, the Company''s related parties with whom transactions executed during the year, are disclosed below :

a) Key Management Personnel & their Relatives

i) Shri S.N.Gupta Chairman & Managing Director

ii) Shri M.P.Gupta Whole Time Director

iii) Shri R.P.Gupta Whole Time Director

iv) Shri Ajay Gupta Executive Director

v) Shri V.K.Sharma Executive Director

vi) Smt. Sweety Gupta Wife of Shri S.N.Gupta

vii) Shri Dinesh Gupta Son of Shri S.N.Gupta

viii)Smt. Savita Gupta Wife of Shri M.P. Gupta

ix) Shri Vikas Gupta Son of Shri M.P. Gupta

x) Smt. Manju Gupta Wife of Shri R.P. Gupta

xi) Shri Sahil Gupta Son of Shri R.P. Gupta

b) Related Entities

i) Bharat Insecticides limited ii) B R Agrotech Limited iii) BRL Finlease Limited iv) Centum Finance Limited v) Synochem Organics Pvt. Limited vi) S.N.Gupta & Sons (HUF) vii) M.P. Gupta & Sons HUF viii)R.P. Gupta & Sons HUF

1.4 As per Accounting Standard AS-20 on earning per share, issued by the Institute of Chartered Accountants of India, the earning per share of the Company is Rs. 47.42 (Last Year Rs. 22.56).


Mar 31, 2013

1. Loss in transit-Export Consignment : The Company had exported goods to China in August, 2012. The Cargo carrying the goods met wild fire in transit and the vessel carrying the goods was forced to detain in transit. The exported goods of the Company in the vessel however could be saved from fire which could not land the port of destination up to the date of signing of this report. In the meantime the market rate of exported goods slides down drastically. The difference in market price of the said goods on 31.03.2013 over the billing price of the consignment was therefore booked as loss in transit - Export Consignment under the head Exceptional Items.

2. Insurance claim towards loss of stock due to fire : Company received a sum of Rs.26,246,535/- in the preceding year towards insurance claim against loss of stocks in fire at its factory at Hyderabad (A.P.) during the financial year 2007-08. As the loss was booked as an expenditure in Profit & Loss Account in the financial year 2007-08, claim against it is credited to the Statement of Profit & Loss of the preceding year under the head Exceptional Item.

3.1 CONTINGENT LIABILITIES AND COMMITMENTS NOT PROVIDED FOR IN RESPECT OF :

As at 31.03.2013 (Rs. in Lacs)

i) Guarantees given to Addl. Excise & Taxation Commissioner, Panchkula 5.70

ii) Surety given to Dy. Excise & Taxation Commissioner (S.T. Rohtak) 258.16

and Customs and Central Excise Commissioner, Jammu (J&K)

iii) In respect of certain disallowances confirmed by Hon''ble Delhi High Court in the case of the Company for Asstt. Year 1997-98 to 2001-02, the demand has not yet ascertained and hence

3.2 As the Hon''ble Punjab & Haryana High Court strucked down the constitutional validity of Haryana Local Area Development Tax (LADT) imposed by the Haryana Govt., the Company has applied for refund of LADT deposited in the earlier years. However, matter is subjudice.

3.3 The Company is liable to pay income tax of Rs.28,232,701/- under MAT provisions for the year under reference as the taxable income as per normal provisions of the Act is negative. The Company has reasons to believe and is assured of its set off out of coming years profits. The total such tax alongwith brought forward balance of Rs.307,839/- from earlier years is carried forward for set off at Rs.28,540,540/- under the head Short Term Loans and Advances. The same has therefore not considered for current taxes.

3.4 RELATED PARTY TRANSACTIONS

As per Accounting Standard AS-18 issued by the Institute of Chartered Accountants of India, the Company''s related parties with whom transactions executed during the year, are disclosed below :

Note : Related Party Transactions are as identified by the Company and relied upon by the Auditors.

3.5 As per Accounting Standard AS-20 on earning per share, issued by the Institute of Chartered Accountants of India, the earning per share of the Company is Rs. 22.56 (Last Year Rs. 23.14).


Mar 31, 2012

A. Rights, preferences and restrictions attached to shares:

The Company has one class of equity shares having a par value of Rs. 10 per share. Each shareholder is eligible for one vote per share held. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting. In the event of liquidation, the equity shareholders are eligible to receive the remaining assets of the Company after distribution of all preferential amount, in proportion to their shareholding.

As per Accounting Standard AS-22 on Accounting for taxes on income, the Company had recorded the cumulative net deferred tax liability up to 31.03.2011 of Rs. 18,609,587/-. For the current year the Company has recorded the Cumulative Net Deferred Tax Liability of Rs.15,067,118/- and the difference of Rs.3,542,469/- has been charged to Statement of Profit and Loss.

Out of the total provision of Rs. 1,927,332/-, a sum of Rs. 299,685/- pertaining to the Dahej unit, which is under construction, is capitalized during the year. Out of the balance of Rs. 1,627,647/-, Rs. 1,446,666/- added back for tax purposes U/s 43B of the Income Tax Act and the remaining balance of Rs. 180,981/- pertains to R&D and Grouped accordingly.

Retirement Benefits : Contributions are made to Approved Employees' Provident Fund. In respect of Gratuity, the Company has opted for Group Gratuity Life Insurance Scheme of the Life Insurance Corporation of India and Reliance Life Insurance Company Limited.

Balances of Sundry Debtors, Advances to Suppliers and Creditors and Advances from Customers are subject to confirmation.

Trade Receivables outstanding for a period exceeding six months from the date they are due for payment disclosed separately. Calculation of such debts in the preceding year was from the billing date.

The manufacturing unit at Dahej (Gujarat) of Company is under construction, plant & machinery and equipments are under procurement and installation. The Borrowing cost of Rs.1,43,57,156/- relating to acquisition/construction of qualifying assets has been capitalised during the year. All other borrowing costs are charged to statement of profit and loss. The total Capital WIP of Dahej Unit includes accumulated borrowing cost of Rs. 37,347,964/- upto 31.03.2012.

Note: R&D Expenses - The Company is registered as Research & Development Unit (R&D) with Ministry of Science & Technology, Govt. of India, Department of Scientific & Industrial Research, New Delhi, hence eligible for weighted deduction U/S 35 (2AB) of the Income Tax Act on expenditure incurred for the purpose. Total expenditure of Rs.68,58,325/- (Revenue Expense of Rs.49,29,893/- and Capital Expenditure of Rs.19,28,432/-) are eligible for weighted deduction under Section 35(2aB) of the Income Tax Act, 1961.

Insurance Claim towards loss of stock due to fire

Company received a sum of Rs.2,62,46,535/-during the year towards insurance claim against loss of stocks in fire at its factory at Hyderabad during the financial year 2007-08. As the loss was booked as an expenditure in Profit & Loss Account in the financial year 2007-08, claim against it is credited to the Statement of Profit & Loss for the year under the head "Exceptional Items".

1.1 CONTINGENT LIABILITIES AND COMMITMENTS NOT PROVIDED FOR IN RESPECT OF :

As at 31.03.2012 (Rs. in Lacs)

i) Guarantees given to Addl. Excise & Taxation Commissioner, Panchkula 5.70

ii) Surety given to Dy. Excise & Taxation Commissioner (S.T. Rohtak) 8.16

iii) 1. In respect of certain disallowances confirmed by Hon'ble Delhi High Court in the case of the Company for Asstt. Year 1997-98 to 2001-02, the demand has not yet ascertained and hence not taken into account.

2. In respect of the erstwhile amalgamating company Siris Crop Sciences Limited, following are the disputed/contingent liabilities:

1.2 As the Hon'ble Punjab & Haryana High Court strucked down the constitutional validity of Haryana Local Area Development Tax (LADT) imposed by the Haryana Govt., the Company has applied for refund of LADT deposited in the earlier years. However, matter is subjudice.

1.3 Out of the total MAT Credit available Rs. 14,834,871/-, a sum of Rs. 14,527,033/- is utilized during the current year and accordingly the same is adjusted into the provision for income tax liability in Balance Sheet.

1.4 RELATED PARTY TRANSACTIONS

As per Accounting Standard AS-18 issued by the Institute of Chartered Accountants of India, the Company's related parties with whom transactions executed during the year, are disclosed below :

a) Key Management Personnel & their Relatives

i) Shri S.N.Gupta Chairman & Managing Director

ii) Shri M.P.Gupta Whole Time Director

iii) Shri R.P.Gupta Whole Time Director

iv) Shri Ajay Gupta Executive Director

v) Dr V. K. Sharma Executive Director

vi) Smt. Sweety Gupta Wife of Shri S.N. Gupta

vii) Shri Dinesh Gupta Son of Shri S.N. Gupta

b) Related Entities

i) Bharat Insecticides Limited ii) B R Agrotech Limited

iii) BRL Finlease Limit ed iv) Centum Finance Limited

v) Synochem Organics Pvt. Limited

1.5 As per Accounting Standard AS-20 on earning per share, issued by the Institute of Chartered Accountants of India, the earning per share of the Company is Rs.23.14 (Last Year Rs.13.86).


Mar 31, 2010

1. Corresponding figures of the previous year have been regrouped and/or re-arranged wherever necessary.

2. Cost of goods consumed/sold includes cost of raw materials, consumable stores, fuels/oils, packing materials & utilities.

3. Inventory have been valued at lower of cost or net realisable value. Raw Materials are valued on the basis of FIFO. In the case of finished goods cost comprises material, labour and factory overheads. Goods in process have been valued at raw material cost incurred upto the stage of production + conversion cost apportioned. Other Inventories are valued at cost. All the stocks have been certified by the management.

4. Sales have been accounted for exclusive of sales tax and excise duty wherever applicable and are net of returns and discounts. Exports benefits under DEPB scheme have been accounted for separately. The Export benefits are accrued on the date of export. Sales do not include captive consumption.

5. Contingent Liabilities not provided for in respect of :

As at 31.03.2010 As at 31.03.2009 Rs. in Lacs Rs. in Lacs

i) Guarantees Given to Addl. Excise &

Taxation Commissioner, Panchkula 5.70 -

ii) Surety given to Dy. Excise & Taxation

Commissioner (S.T. Rohtak) 8.16 8.16



6. Depreciation has been provided for on written down value method as per Schedule XIV to the Companies Act, 1956.

7. The Company follows the Accrual System of Accounting and on assumptions of an ongoing concern.

8. As per practice consistently followed, the consumption of raw materials is net of Cenvat Credit availed.

9. The applicable Accounting standards have been followed in preparation of final Accounts.

10. The Management have selected such accounting policies and applied them consistently and made judgements and estimates that are prudent and reasonable so as to give a true and fair view of the state of affairs of the Company as at 31.03.2010 and of the profit of the Company for the year ended on that date.

11. Prior Period Items

(a) Value of three DEPB licences worth Rs.9,21,300/- utilised for duty free import in the preceeding year was wrongly reflected as DEPB in hand as on 31.03.2009. The same has been debited to the revenue A/c during the year.

(b) Custom duty of Rs. 2,43,888/- wrongly debited to revenue A/c twice last year which has been reversed during the year.

12. The Company is running a chemical plant at village Mokhra, Distt Rohtak, Haryana generating chemical wastes in manufacturing process which the company is required to dispose off / treated / dumped at the sites developed by the State Government under Hazardous waste (Management and Handling) Rules 1989 issued under the Environment (Protection) Act, 1986. As the stay granted by the Punjab & Haryana High Court for development of dumping site by Haryana Govt has been stayed by the Honble Supreme Court during the financial year 2008-09, an estimated provision for disposal charges of the accumulated hazardous waste since start of the factory was made for Rs.3.09 Crores in financial year 2008-09 which being found insufficient keeping in view the cost escalation therein, a further provision is made for Rs.112.18 Lacs during the year.

13. Related Party Transactions :

As per Accounting Standard AS-18 issued by the Institute of Chartered Accountants of India, the Companys related parties are disclosed below :

a) Key Management Personnel & Other Relatives

i) Shri S.N.Gupta Chairman & Managing Director

ii) Shri M.P.Gupta Director

iii) Shri R.P.Gupta Director

iv) Shri Ajay Gupta Director

and their Relatives

b) Associated Companies

i) Bharat Insecticides Limited iv) BRL Finlease Limited

ii) BR Agrotech Limited v) Centum Finance Limited

iii) Siris Crop Sciences Limited vi) Bharat Rasayan Finance Limited

14 As per Accounting Standard AS-20 on earning per share, issued by the Institute of Chartered Accountants of India, the earning per share of the Company is Rs. 13.67 (Last Year Rs. 12.17).

15 As per Accounting Standard AS-22 on Accounting for Taxes on income, the Company has recorded the cumulative net deferred tax liability upto 31.03.2010 of Rs. 59,49,078/-. For the current year the Company has recorded the net deferred tax assets of Rs. 8,34,459/-, carrying forward cumulative deferred tax liability of Rs. 59,49,078/-.

 
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