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Notes to Accounts of Chromatic India Ltd.

Mar 31, 2014

Note-23 Company Overview

The Company currently in the business of manufacturing, trading and export of Synthetic Organic Dyestuff and dyes intermediates. The Company concentrates on the Reactive Dyestuff mainly Vinyl Sulfone type, bi-functional, multi-functional and high exhaustion and the latest dyestuff to make liquid dyestuff. All the products are appreciated all over the world. At present, the Company is manufacturing only Reactive Dyes based on Vinyl Sulphone & Cyanuric Chloride. In future, the Company is planning to manufactures Disperse & Vat Dyes. The Company has also started trading activities in chemicals and building material and also has taken Power Trading licence from Govt. of India.

2 Contingent liabilities not provided for:

As at 31-03-14 As at 31-03-13 (Rupees) (Rupees)

Bank Guarantees (secured by fixed deposit receipts) 76,274 70,301

3 There are no Micro, Small and Medium Enterprises, as defined in the Micro, Small and Medium Enterprises Development Act, 2006 to whom the company owes dues on account of principal amount together with interest and accordingly no additional disclosures have been made.

The above information regarding Micro, Small and Medium Enterprises has been determined to the extent such parties have been identified on the basis of information available with the company. This has been relied upon by the auditors.

4 In the opinion of the Board, current assets, loans and advances shall have a value on realisation in the ordinary course of business at least equal to the amount at which they are stated in the balance sheet and provision for all known liabilities have been made and contingent liabilities disclosed properly. Balances of sundry debtors, sundry creditors, loans and advances and other personal accounts are subject to confirmation and reconciliation. Consequential impact, if any, will be considered as and when determined.

5 Loans & Advances includes non-interest bearing unsecured loan of Rs. 2161747158/- given to Chromatic International FZE, the subsidiary of the company for overseas Business Development. The company did not do any business during the year.

6 The Company had made investments in erstwhile subsidiary namely Arcoiris SA with a view to have establishment abroad to penetrate into foreign market. However, the company has been liquidated during the year 2011-12.Net worth of Arcoiris SA is fully eroded. However, no provision is made for investment amounting to Rs. 26.23 lacs and advances and interest receivable of Rs. 109.81 lacs, which are doubtful of recovery. The amount has been shown as Long Term Loans & Advances.

7 The company has made Advances for capital work in progress amounting to Rs. 105.72 Crores during previous accounting years for setting up pf power plant. The procurement has not been done for pending clearances from the Govt.

8 No events or transactions have occurred since the date of Balance Sheet or are pending that would have a material effect on the financial statements at the date or for the period then ended, other than those reflected or fully disclosed in the books of account.

9 Provision for Gratuity payable to employees has been covered by the Group Gratuity Policy taken by the company with LIC of India and premium of the policy has been duly accounted for. However, no provision has been made for leave encashment as required by AS-15 (Revised 2005) employee Benefits notified by Companies (Accounting Standard) Rules 2006, has been made and the same shall be accounted for as and when paid.

A. Defined Contribution Plans - Employers contribution to Provident Fund :

During the year the company has recognized the following amounts in the statement of Profit & Loss

10 Pursuant to Accounting Standard (AS)-28 on "Impairment of Asset" issued by The Institute of Chartered Accountants of India, the company assessed its fixed assets for impairment as at 31st March 2014, and concluded that there have been no significant impaired fixed assets that need to be recognized in the books of accounts.

11 Previous year figures have been regrouped, rearranged, reclassified and reworked wherever necessary. Amounts and other disclosures for the preceding year are included as an integral part of the current year financial statements and are to be read in relation to the amounts and other disclosures relating to the current year.


Mar 31, 2013

Note-1 Company Overview

The Company currently in the business of manufacturing, trading and export of Synthetic Organic Dyestuff and dyes intermediates. The Company concentrates on the Reactive Dyestuff mainly Vinyl Sulfone type, bi-functional, multi-functional and high exhaustion and the latest dyestuff to make liquid dyestuff. All the products are appreciated all over the world. At present, the Company is manufacturing only Reactive Dyes based on Vinyl Sulphone & Cyanuric Chloride. In future, the Company is planning to manufactures Disperse & Vat Dyes. The Company has also started trading activities in chemicals and building material and also has taken Power Trading licence from Govt. of India.

2 Contingent liabilities not provided for:

As at 31-03-13 As at 31-03-12

(Rupees) (Rupees)

Bank Guarantees (secured by fixed deposit receipts) 70,301 60,000

3 There are no Micro, Small and Medium Enterprises, as defined in the Micro, Small and Medium Enterprises Development Act, 2006 to whom the company owes dues on account of principal amount together with interest and accordingly no additional disclosures have been made.

The above information regarding Micro, Small and Medium Enterprises has been determined to the extent such parties have been identified on the basis of information available with the company. This has been relied upon by the auditors.

4 In the opinion of the Board, current assets, loans and advances shall have a value on realisation in the ordinary course of business at least equal to the amount at which they are stated in the balance sheet and provision for all known liabilities have been made and contingent liabilities disclosed properly. Balances of sundry debtors, sundry creditors, loans and advances and other personal accounts are subject to confirmation and reconciliation. Consequential impact, if any, will be considered as and when determined.

5 Loans & Advances includes non-interest bearing unsecured loan of Rs. 1954166544/- given to Chromatic International FZE, the subsidiary of the company for overseas Business Development and Rs. 12,75000/- given to Chromatic Ferro Alloys Ltd, Subsdiary of the company for payment to Mine owners. The company did not do any business during the year.

6 The Company had made investments in erstwhile subsidiary namely Arcoiris SA with a view to have establishment abroad to penetrate into foreign market. However, the company has been liquidated during the year 2011-12.Net worth of Arcoiris SA is fully eroded. However, no provision is made for investment amounting to Rs. 26.23 lacs and advances and interest receivable of Rs. 109.81 lacs, which are doubtful of recovery. The amount has been shown as Long Term Loans & Advances.

7 The company has made Advances for capital work in progress amounting to Rs. 105.72 Crores during previous accounting years for setting up pf power plant. The procurement has not been done for pending clearances from the Govt.

8 No events or transactions have occurred since the date of Balance Sheet or are pending that would have a material effect on the financial statements at the date or for the period then ended, other than those reflected or fully disclosed in the books of account.

9 Provision for Gratuity payable to employees has been covered by the Group Gratuity Policy taken by the company with LIC of India and premium of the policy has been duly accounted for. However, no provision has been made for leave encashment as required by AS-15 (Revised 2005) employee Benefits notified by Companies (Accounting Standard) Rules 2006, has been made and the same shall be accounted for as and when paid.

A. Defined Contribution Plans - Employers contribution to Provident Fund :

During the year the company has recognized the following amounts in the statement of Profit & Loss

10 Pursuant to Accounting Standard (AS)-28 on "Impairment of Asset" issued by The Institute of Chartered Accountants of India, the company assessed its fixed assets for impairment as at 31st March 2013, and concluded that there have been no significant impaired fixed assets that need to be recognized in the books of accounts.

11 Previous year figures have been regrouped, rearranged, reclassified and reworked wherever necessary. Amounts and other disclosures for the preceding year are included as an integral part of the current year financial statements and are to be read in relation to the amounts and other disclosures relating to the current year.


Mar 31, 2012

# Secured by exclusive charge on the underlying plant & machineries i.e. Hot Air Generator, Hypoyhecation of Stocks, Collateral Security of Equitable Mortgage of Land & Buildings situated at B-12/2, Lote Parshuram Indl. Area, Taluka- Khed, Distt. Ratnagiri and simple deposit of title deeds of office premises situated at Vikhroli, Mumbai.

* Secured by Hypothecation of underlying assets paurchased.

# Secured by exclusive charge on the underlying plant & machineries i.e. Hot Air Generator, Hypoyhecation of Stocks, Collateral Security of Equitable Mortgage of Land & Buildings situated at B-12/2, Lote Parshuram Indl. Area, Taluka- Khed, Distt. Ratnagiri and simple deposit of title deeds of office premises situated at Vikhroli, Mumbai.

@ Secured by shares held by the Promoters

Note : There has been no default in repayment of loan payment of interest in respect of above borrowings.

Notes forming part of the financial statements Note-23 Company Overview

The Company currently in the business of manufacturing, trading and export of Synthetic Organic Dyestuff and dyes intermediates. The Company concentrates on the Reactive Dyestuff mainly Vinyl Sulfone type, bi-functional, multi-functional and high exhaustion and the latest dyestuff to make liquid dyestuff. All the products are appreciated all over the world. At present, the Company is manufacturing only Reactive Dyes based on Vinyl Sulphone & Cyanuric Chloride. In future, the Company is planning to manufactures Disperse & Vat Dyes. The Company has also started trading activities in chemicals and building material and also has taken Power Trading licence from Govt. of India.

1 Contingent liabilities not provided for:

As at 31-03-12 As at 31-03-11 (Rupees) (Rupees)

Bank Guarantees (secured by fixed deposit receipts) 60,000 20,000

Disputed Income-tax demands with various authorities for various year 3,958,448 3,894,352

(For the A.Y. 1999-00, certain expenses were disallowed amounting to Rs. 90,35,149. ITAT referred back the case to CIT appeals to verify the case on factual ground. In the A.Y 2002-03, the company had written off loss on investment in subsidiary amounting to Rs. 6,75,100/-. The loss was claimed as "business loss" in the computation of income. In assessment the loss was disallowed and Assessing Office (A.O.) has initiated penalty. The case has been presented before the A.O. for clairification on non levy of penalty. The order for the same is awaited. In the assessment of 2008-09 disallowances are made for non submission of TDS certificate amounting to Rs. 56,950 . The company has deposited the original TDS certificate to claim the credit.)

2 There are no Micro, Small and Medium Enterprises, as defined in the Micro, Small and Medium Enterprises Development Act, 2006 to whom the company owes dues on account of principal amount together with interest and accordingly no additional disclosures have been made.

The above information regarding Micro, Small and Medium Enterprises has been determined to the extent such parties have been identified on the basis of information available with the company. This has been relied upon by the auditors.

3 In the opinion of the Board, current assets, loans and advances shall have a value on realisation in the ordinary course of business at least equal to the amount at which they are stated in the balance sheet and provision for all known liabilities have been made and contingent liabilities disclosed properly. Balances of sundry debtors, sundry creditors, loans and advances and other personal accounts are subject to confirmation and reconciliation. Consequential impact, if any, will be considered as and when determined.

4 Loans & Advances includes non-interest bearing unsecured loan of Rs. 1843084010/- given to Chromatic International FZE, the subsidiary of the company for overseas Business Development.

5 The Company had made investments in subsidiary namely Arcoiris SA with a view to have establishment abroad to penetrate into foreign market. However, the company has been liquidated during the year and net worth of Arcoiris SA is fully eroded. However, no provision is made for investment amounting to Rs. 26.23 lacs and advances and interest receivable of Rs. 109.81 lacs, which are doubtful of recovery. The amount has been shown as Long Term Loans & Advances.

6 Following accounts still continue in the name of Blue rock dyes and chemicals ltd., which were amalgamated with Chromatic India Ltd. on 01.04.2006. The amount lying in said accounts will be transferred in the name of Chromatic India Ltd. in due course.

7 No events or transactions have occurred since the date of Balance Sheet or are pending that would have a material effect on the financial statements at the date or for the period then ended, other than those reflected or fully disclosed in the books of account.

8 Provision for Gratuity payable to employees has been covered by the Group Gratuity Police taken by the company with LIC of India and premium of the policy has been duly accounted for. However, no provision has been made for leave encashment as required by AS-15 (Revised 2005) employee Benefits notified by Companies (Accounting Standard) Rules 2006, has been made and the same shall be accounted for as and when paid.

9 Pursuant to Accounting Standard (AS)-28 on "Impairment of Asset" issued by The Institute of Chartered Accountants of India, the company assessed its fixed assets for impairment as at 31st March 2012, and concluded that there have been no significant impaired fixed assets that need to be recognized in the books of accounts.

10 Previous year figures have been regrouped, rearranged, reclassified and reworked wherever necessary. Amounts and other disclosures for the preceding year are included as an integral part of the current year financial statements and are to be read in relation to the amounts and other disclosures relating to the current year.


Mar 31, 2011

1 The schedules referred to in the Balance Sheet & Profit annd Loss Account form an integral part of the accounts.

2 Contingent liabilities not provided for: As at 31-03-11 As at 31-03-10 (Rupees) (Rupees)

Bank Guarantees (secured by fixed deposit receipts) 20,000 35,000

Disputed Income-tax demands with various authorities for various years 3,958,448 3,894,352

(For the A.Y. 1999-00, certain expenses were disallowed amounting to Rs. 90,35,149. ITAT referred back the case to CIT appeals to verify the case on factual ground. In the A.Y. 2002-03, the company had written off loss on investment in subsidiary amounting to Rs. 6,75,100/-. The loss was claimed as "business loss" in the computation of income. In assessment the loss was disallowed and Assessing Office (A.O.) has initiated penalty. The case has been presented before the A.O. for clairification on non levy of penalty. The order for the same is awaited. In the assessment of 2008-09 disallowances are made for non submission of TDS certificate amounting to Rs. 56,950 . The company has deposited the original TDS certificate to claim the credit.)

3 Share Warrants

The Company had issued 1500000 Equity Shares warrants having face value of Rs.10 each at a price of Rs. 100/- each (including premium of Rs. 90) pursuant to the shareholder approval through postal ballot, result of which was declared on 10th March, 2010. These share warrants were converted in to 15,00,000 equity shares on 15.06.2010.

4 During the year, company has issued 2,25,00,000 of Rs. 10/- each at a premium of Rs. 29/- on preferential basis. The allotment of shares was made on 07.10.2010 pursuant to the resolution passed by the shareholders in the Annual General Meeting held on 20.09.2010.

5 Pursuant to Shareholders approval through postal ballot, result of which was declared on 10th March, 2010, the company, during the year, has come out with a GDR (Global Depository Receipts) issue comprising of 42,00,000 GDRs at an offer price of USD 8.52 per GDR, representing 3,78,00,000 Equity Shares of Rs. 10/- each at a premium of Rs. 32/- per equity share. The allotment of equity shares was done on 22.10.2010.

6 Sundry debtors, sundry creditors and other receivables are taken as appearing in books of accounts which are subject to confirmation and reconciliation. Consequential impact, if any, will be considered as and when determined.

7 Bills discounting includes Rs.1,01,68,810/- given to Western India Financial Services Limited in 1996-97.The Company has initiated appropriate legal action to recover the said amount which had already matured in December, 1996. the decision of the court was received in March, 2011 vide which the court rejected the contentions of the company. In view of this, said deposit is not recoverable and the Board of Directors have decided to write off the amount vide the resolution passed in their meeting held on 11.03.2011.

8 Bills discounting, further includes deposit of Rs.1,52,95,000/- given to Pillage Finance & Investment Private Limited (PFIPL) in 1995-96 & 1996-97. had waived the interest aggregating to Rs.54,76,298/- provided thereon upto 31.03.97on the basis that PFIPL repays the principle amount in full. However the company has not paid any amount so far. Accordingly, no interest income has been considered on outstanding balances since 1997-98. In view of its non recoverability the management has written off the amount as on 31.03.2011 in view of the resolution passed by the Board of Directors in their meeting held on 11th March 2011.

9 The Company has made investments in subsidiary Arcoiris SA with a view to have establishment abroad to penetrate into foreign market. However, net worth of Arcoiris SA is fully eroded and it doesn't have enough realisable assets to meet its liabilities. However, no provision is made for investment amounting to Rs. 26.23 lacs and advances and interest receivable of Rs. 110.74 lacs, which are doubtful of recovery. Further, accounts of Arcorls SA are not consolidated with Chromatic India Limited.

10 During the year, the company has formed a subsidiary on 21.10.2011, in the name of Chromatic International FZE with registered office in UAE and authorised capital of AED 100,000 equivalent to INR 12,28,550/-with the main object of carry on the business of trading in Paint, Varnish, Tannery and Dyeing Materials.

11 Loans & Advances includes non-interest bearing unsecured loan of Rs. 90,67,79,500/- given to Chromatic International FZE, the subsidiary of the company for overseas Business Development.

12 Provision for Gratuity payable to employees has been covered by the Group Gratuity Policy taken by the company with LIC of India and premium of the policy has been duly accounted for. However, no provision has been made for leave encashment as required by AS-15 (Revised 2005) employee Benefits notified by Companies (Accounting Standard) Rules 2006, has been made and the same shall be accounted for as and when paid.

13 There is no Micro, Small and medium Enterprises, to whom the company owes more than 45 days as at 31st March, 2011 (P.Y. Nil). This information, as required to be disclosed under the Micro, Small and Medium Enterprises Development Act, 2006, has been determined to the extent such parties have been identified on the basis of information available with the Company. Further, no interest is outstanding to be paid to any such parties.

14 Previous year figures have been regrouped, rearranged, reclassified and reworked wherever necessary. Amounts and other disclosures for the preceding year are included as an integral part of the current year financial statements and are to be read in relation to the amounts and other disclosures relating to the current year.


Mar 31, 2010

1 The schedules referred to in the Balance Sheet & Profi t and Loss Account form an integral part of the accounts.

2 Contingent liabilities not provided for: As at 31-03-10 As at 31-03-09

(Rupees) (Rupees)

Bank Guarantees (secured by fixed deposit receipts) 35,000 35,000

Disputed Income-tax demands with various authorities for various years 3,894,352 7,867,171

For the A.Y. 1999-00, certain expenses were disallowed amounting to Rs. 90,35,149. ITAT referred back the case to CIT appeals to verify the case on factual ground. In the A.Y. 2002-03, the company had written off loss on investment in subsidiary amounting to Rs. 6,75,100/-. The loss was claimed as "business loss" in the computation of income. In assessment the loss was disallowed and Assessing Offi ce (A.O.) has initiated penalty. The case has been presented before the A.O. for clairifi cation on non levy of penalty. The order for the same is awaited. In the assessment of 2008-09 disallowances are made for non submission of TDS certifi cate amounting to Rs. 56,950 . The company has deposited the original TDS certifi cate to claim the credit.

3 Sundry debtors, sundry creditors and other receivables are taken as appearing in books of accounts which are subject to confi rmation and reconciliation. Consequential impact, if any, will be considered as and when determined.

4 Bills discounting includes Rs.1,01,68,810/- given to Western India Financial Services Limited in 1996-97.The Company has initiated appropriate legal action to recover the said amount which had already matured in December, 1996.In view of this, said deposit is not recoverable.

5 Bills discounting, further includes deposit of Rs.1,52,95,000/- given to Pillage Finance & Investment Private Limited (PFIPL) in 1995-96 & 1996-97. The Company had waived the interest aggregating to Rs.54,76,298/- provided thereon upto 31.03.97on the basis that PFIPL repays the principle amount in full. Accordingly, no interest income has been considered on outstanding balances since 1997-98.

6 The Company has made investments in subsidiary Arcoiris SA with a view to have establishment abroad to penetrate into foreign market. However, net worth of Arcoiris SA is fully eroded and it doesnt have enough realisable assets to meet its liabilities. However, no provision is made for investment amounting to Rs. 26.23 lacs and advances and interest receivable of Rs. 95.63 lacs, which are doubtful of recovery. Further, accounts of Arcoris SA are not consolidated with Chromatic India Limited.

7 Employees remuneration and benefi ts include Rs.14,14,164.00 on account of voluntary retirement scheme expenses incurred in last year and said amount fully amortised during the year.

8 No provision for Gratuity and leave encashment as required by AS-15 (Revised 2005) employee Benefi ts notifi ed by Companies (Accounting Standard) Rules 2006, has been made and the same shall be accounted for as and when paid.

9 There is no Micro, Small and Medium Enterprises, to whom the company owes more than 45 days as at 31st March, 2010 (P.Y. Nil). This information, as required to be disclosed under the Micro, Small and Medium Enterprises Development Act, 2006, has been determined to the extent such parties have been identifi ed on the basis of information available with the Company. Further, no interest is outstanding to be paid to any such parties.

10 Previous year figures have been regrouped, rearranged, reclassifi ed and reworked wherever necessary. Amounts and other disclosures for the preceding year are included as an integral part of the current year fi nancial statements and are to be read in relation to the amounts and other disclosures relating to the current year.

 
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