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Union Budget 2017-18
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Notes to Accounts of Deepak Nitrite Ltd.

Mar 31, 2016

(a) Shares:- Terms/Rights:

i) Authorized shares have been classified into Equity and Preference shares.

ii) During the year, the Company offered Equity Shares to Qualified Institutional Buyers ("QIBs") through Qualified
Institutions Placement in accordance with Chapter VIII of SEBI (Issue of Capital and Disclosure Requirements) Regulations,
2009. Accordingly, 1,1 7,50,000 Equity Shares of Rs, 2/- each were allotted to QIBs on January 6, 201 6 at an issue price
of Rs, 70.90 per Equity Share (including premium of Rs, 68.90 per Equity Share).

Out of the issue proceeds of Rs, 8,330.75 Lacs from the Qualified Institutions Placement, Rs, 260.07 Lacs were utilized
towards share issue expenses and Rs, 1,374.00 Lacs has been utilized for the object stated in the offer document. Pending
utilization, Rs, 6,696.68 Lacs have been invested in Liquid Mutual Funds.

iii) Each holder of the Equity Share is entitled to one vote per Share. The Company declares and pays Dividend in Indian
Rupees. The Dividend proposed by the Board of Directors is subject to approval of the Shareholders at the ensuing
Annual General Meeting.


iv) During the year ended March 31, 2016, the amount of per Share Dividend recognized as distribution to Equity
Shareholders is Rs, 1 .20/- (Previous year, Rs, 1/-).

v) In the event of liquidation of the Company, the holders of Equity Shares shall be entitled to receive remaining assets of
the Company, after distribution of all preferential amounts. The distribution will be in proportion to the number of Equity
Shares held by the Shareholders. No preferential amounts exist as on the Balance Sheet date.

(d) During the year 201 4-1 5, Company has allotted 52,269,095 Bonus Equity shares of Rs, II- each, fully paid up, in the ratio
of 1 :1 (one Bonus Equity shares of Rs, II- each).

Term Loans:-

The Loans from Banks includes term loan obtained from State Bank of India during the year amounting to Rs, 1,197.10 Lacs
(Previous year, Rs, 4,202.07 Lacs), which is to be secured by first pari passu charge by way of mortgage of immovable properties
of the Company and both present and future hypothecation of movable assets of the Company. The Company is in the process of
executing the necessary charge on the Assets. The outstanding balance of External Commercial Borrowings are from (a) Standard
Chartered Bank Rs, 3,797.56 Lacs (Previous year, Rs, 5,1 95.04 Lacs) (b) HSBC Bank (Mauritius) Limited Rs, 4,974.97 Lacs (Previous
year, Rs, 7,041 .47 Lacs) and (c) DBS Bank Limited Rs, 8,457.44 Lacs (Previous year, Rs, 9,701.57 Lacs). These loans are secured by
first pari passu charge by way of mortgage of immovable properties of the Company, both present and future and hypothecation
of movable assets of the Company and also by second pari passu charge over Current Assets of the Company.

Repayment Schedule:-

a) Rate of interest of loan from Banks are in the range of base rate plus 0.50% to 1 .00% p.a.

b) Term loan from State Bank of India is repayable on monthly basis starting from June, 201 5 with last installment payable in
November, 2021.

c) Rate of interest of External Commercial Borrowings are in the range of LIBOR plus 2.50% to 3.00% p.a.

d) External Commercial Borrowing from Standard Chartered Bank is repayable on half-yearly basis which started on August
23, 201 3 with a step up repayment schedule and last installment payable on February 23, 201 8.

e) External Commercial Borrowing from HSBC Bank (Mauritius) Limited is repayable on half yearly basis which started on
March 30, 201 4, with a step up repayment schedule and last installment payable on March 29, 201 8.

f) External Commercial Borrowing from DBS Bank Ltd. is repayable on quarterly basis which started on February 3, 201 4, with
a step up repayment schedule and last installment payable on November 1, 201 8.


a) Working Capital borrowings from banks represent Cash Credit, Working Capital Demand Loan, Export Packing Credit
with rate of interest as Base Rate of respective banks plus spread ranging from 0% - 2.25% p.a., Packing Credit in Foreign
Currency, Buyers'' Credit against Letter of Undertaking with rate of interest ranging from LIBOR/EURIBOR plus spread
ranging from 0.25% p.a. to 1 .1 0% p.a. These borrowings are repayable on demand.

b) Secured Working Capital borrowings are Secured by way of first Hypothecation charge over Company''s Raw Materials,
Semi-Finished and Finished Goods, Consumable Stores and Book Debts and second charge on all Fixed Assets by way of
hypothecation and mortgage.

c) Commercial Paper placed by the Company carries interest rate ranging from 7.50% p.a. to 9.15% p.a., tenure of each
placement ranging from 43 days to 140 days. Commercial Papers issued during the year were unsecured.

Note: The Unclaimed Matured deposits of Rs, 9.22 Lacs outstanding as at March 31, 201 6 represents an aggregate amount of
certain cherubs issued towards compulsory repayment of the outstanding fixed deposits as on March 31, 201 5, which have not
been presented to the bank for payment by the depositors.

Note: Pursuant to the provisions contained in the Companies (Accounting Standards) Amendment Rules, 2009, and
related notifications of Ministry of Corporate Affairs, the Company in 2015-16 has adjusted to fixed assets, foreign
exchange differences amounting to Rs, 1,289.44 Lacs (Previous year, Rs, 1,950.21 Lacs) on revaluation of long term
foreign currency borrowing for acquisition of fixed assets as an adjustment to borrowing costs.

4 (a) Out of fixed assets amounting to Rs, 26.02 Lacs pertaining to Fine & Specialty Chemicals segment forming part of
Nandesari division and which were held of disposal, assets worth Rs, 1 .1 0 Lacs (Previous year, Rs, 8.26 Lacs) were sold
during the year at a profit of Rs, 0.06 Lacs (Previous year, loss Rs, 5.49 Lacs) recognized in Statement of Profit and Loss.
The remaining assets are revalued at Rs, 20.23 Lacs (Previous year, Rs, 26.02 Lacs) and loss on revaluation of Rs, 4.70
Lacs (Previous year, Rs, 21 .01 Lacs) is recognized in Statement of Profit & Loss. During the current year Assets pertaining
to Fluorescent Whitening Agent segment having carrying value of Rs, 57.77 Lacs (Previous year, NIL) are retired from
active use and are held for disposal. These assets are stated at lower of book value and realizable value ie. at
Rs, 51 .22 Lacs (Previous year, NIL) separately in the financial statements as Current Assets held for disposal. The
difference between realizable value and carrying value being loss of Rs, 6.55 Lacs (Previous year, NIL) is recognized in
the current year''s Statement of Profit and Loss.


(b) In respect of Building held under Capital work in progress at Roha which was impaired in the year 2008-09, cumulative provision stands at Rs, 397.88 Lacs as on Balance Sheet date,

(c ) Further, in respect of Factory Building at Roha which was impaired in the year 2008-09, during the previous year,impairment provision of Rs, 23.03 Lacs was reversed as the said assets were put to alternate use. Cumulative provision stands Nil.

i) Aggregate amount of Unquoted Investments is Rs, 6,521 .92 Lacs (Previous year, Rs, 1,694.83 Lacs),

ii) Aggregated amount of Quoted Investments is Rs, 6,773.89 Lacs (Previous year, Rs, 22.39 Lacs),

iii) Aggregate Market Price of Quoted Investments Rs, 6,893.06 Lacs (Previous year, Rs, 1 01 .07 Lacs).


Notes:

1 . During the previous year Company has paid Rs, 51 0.00 Lacs towards Share Application Money to Deepak Phenolics Limited
(Wholly Owned Subsidiary). During the year the Company was alloted shares against the same.

2. Loans to Company has been given for business purpose.

1. Employee Retirement Benefits

A) Gratuity

Description of the Plan:

The Company has covered its Gratuity Liability by a Group Gratuity Policy named ''Employee Group Gratuity Assurance
Scheme'' issued by Life Insurance Corporation of India. Under this plan, an employee at retirement is eligible for benefit,
which will be equal to 15 days salary for each completed year of service. Thus, it is a defined benefit plan and the
aforesaid insurance policy is the Plan Asset.


2. Disclosure under AS 18 "Related Party Disclosures"


(i) Subsidiary Companies:

Deepak Nitrite Corporation Inc., United States of America

Deepak Phenolics Limited
(ii) Associate Company:

Deepak Gulf LLC, Sultanate of Oman
(iii) Key Management Personnel

Shri C.K. Mehta, Chairman

Shri D.C. Mehta, Vice Chairman & Managing Director

Shri A.C. Mehta, Managing Director

Shri Umesh Asaikar, Executive Director & Chief Executive Officer

(iv) Companies over which key managerial personnel or their relatives are able to exercise significant
Influence.

Blue Shell Investment Private Limited * Check Point Credits & Capital Private Limited * Crossover Advisors Private Limited *
Crossover Trustees Private Limited * Deepak Asset Reconstruction * Deepak Cybit Private Limited * Deepak Fertilizers and
Petrochemicals Corporation Limited * Deepak Foundation * Deepak International Limited * Deepak Medical Foundation *
Deepak Research and Development Foundation * Deepak Novochem Technologies Limited. * Forex Leafin Private Limited
* Grey Point Investments Private Limited *Hardik Leafin Private Limited * Kawant Developers Corporation *Nucore Capital
Management Private Limited * Pranawa Leafin Private Limited * Prolific Credits & Capital Private Limited * Skyrose Finvest
Private Limited * Sofotel Infra Private Limited * Stepup Credits & Capital Private Limited * Stiffen Credits and Capital Private
Limited * Stigma Credit & Capital Private Limited * Storewell Credits & Capital Private Limited * Sundown Finvest Private
Limited * Superpose Credits & Capital Private Limited * Synergy Li Power Resources Private Limited * The Lakaki Works Private
Limited * Yerrowda Investment Limited

(v) Relative of Key Management Personnel

Shri Maulik D. Mehta
Shri Meghav D. Mehta


3. The Company has entered into a long term contractual arrangement with GAIL India Limited ("GAIL") for supply of Gas with
a Take or Pay obligations. A communication was received from GAIL regarding non-consumption of committed quantity for
the year 2014. Accordingly, the Company is required to deposit a sum of Rs, 71 8.00 Lacs which may subsequently be adjusted
in future against the consumption of Gas. The matter has been referred to an arbitrator for settlement, which is pending.
However, GAIL has offered the Company to settle the matter amicably by paying one-time charges of Rs, 141 .00 Lacs. Based
on the above understanding, the Company has prudently provided for the said charges during the year.

As regards the year 201 5, GAIL has agreed to allow the Company to consume the unconsumed Gas in the subsequent years
till the term of the agreement i.e year 2028, without payment of any deposit.

4. During FY 201 5-1 6, your Company has spent Rs, 1 57.60 Lacs (including the unspent amount of Rs, 1 5.72 Lacs in the previous
year) on Corporate Social Responsibility activities, against the requirement of Rs, 122.00 Lacs, being 2% of average of the net
profits for the preceding three years.

5. Previous year''s figures are shown in bracket and have been re-classified / regrouped to conform to this year''s classification
/ groupings.


Mar 31, 2014

1. FOREIGN EXCHANGE DIFFERENCES

Pursuant to the provisions contained in the Companies (Accounting Standards) Amendment Rules, 2009, and related notifications of Ministry of Corporate Affairs, the Company has adjusted to fixed assets, foreign exchange differences amounting to Rs.2,715.94 Lacs ( Rs.1,483.89 Lacs) on revaluation of long term foreign currency borrowing for acquisition of fixed assets.

Further, the Company has also opted to follow the extension of provisions made vide Notification dated December 29, 2011, issued by the Ministry of Corporate Affairs to the long term foreign currency borrowings other than those utilised for fixed assets. Accordingly, the Company has, with effect from April 1, 2011, amortised the foreign exchange loss incurred on such borrowings over their balance term. Since the entire amount of Foreign Currency loan has been fully repaid during the year, no further loss on account of foreign exchange (` 103.74 Lacs) is transferred to the "Foreign Currency Monetary Item Translation Difference Account" and the remaining balance of Rs.85.52 Lacs ( Rs.98.34 Lacs) has been fully amortised during the year under the head "Exchange Fluctuation Loss Account".

(a) Shares:- Terms/Rights:

i) Authorised shares have been classified into Equity and Preference Shares.

ii) The Company has issued Equity Shares having par value of Rs.10/- per Share. Each holder of the Equity Share is entitled to one vote per Share. The Company declares and pays Dividends in Indian Rupees. The Dividend proposed by the Board of Directors is subject to approval of the Shareholders at the ensuing Annual General Meeting.

iii) During the year ended March 31, 2014, the amount of per share dividend recognised as distribution to Equity Shareholders is Rs.10/- (Rs. 8/-).

iv) In the event of liquidation of the Company, the holders of Equity Shares shall be entitled to receive remaining assets of the Company, after distribution of all preferential amounts. No Preferential amounts exist as on the Balance Sheet date. The distribution will be in proportion to the number of Equity Shares held by the Shareholders.

(b) Reconciliation of the shares outstanding and the amount of Share Capital at the beginning and at the end of the reporting period

Company has not issued any Equity Shares or Preference Shares during the year.

Term Loans

The Loans from Banks includes term loan obtained from State Bank of India during the year amounting to Rs.5,200.00 Lacs ( Rs.Nil), this is to be secured by first pari passu charge by way of mortgage of immovable properties of the Company and both present and future hypothecation of movable assets of the Company. The Company is in the process of executing the necessary charge on the assets. Foreign Currency Loan from Banks includes Loan from Bank of Baroda Rs.Nil ( Rs.490.71 Lacs) while External Commercial Borrowings are obtained from (a) Standard Chartered Bank Rs.6,430.68 Lacs ( Rs.6,526.72 Lacs) (b) HSBC Bank (Mauritius) Limited Rs.8,338.85 Lacs ( Rs.8,158.40 Lacs) and (c) DBS Bank Limited Rs.10,517.46 Lacs ( Rs.9,790.07 Lacs). These are secured by first pari passu charge by way of mortgage of immovable properties of the Company, both present and future hypothecation of movable assets of the Company and also by second pari passu charge over Current Assets of the Company. Repayment Schedule

a) Rate of interest of loan from Banks are in the range of base rate plus 0.50% to 1.00% p.a.

b) Term loan from State Bank of India is repayable on monthly basis starting from June, 2015 with last installment payable in November, 2021.

c) Rate of interest of Term Loan and External Commercial Borrowings are in the range of LIBOR plus 2.50% to 3.00% p.a.

d) Foreign Currency Loan from Bank of Baroda is repaid during the year.

e) External Commercial Borrowing from Standard Chartered Bank is repayable on half-yearly basis which started on August 23, 2013 with a step up repayment schedule and last installment payable on February 23, 2018.

f) External Commercial Borrowing from HSBC Bank (Mauritius) Limited is repayable on half yearly basis which started on March 30, 2014, with a step up repayment schedule and last installment payable on March 29, 2018.

g) External Commercial Borrowing from DBS Bank Limited is repayable on quarterly basis which started on February 3, 2014, with a step up repayment schedule and last installment payable on November 1, 2018.

h) Deferred sales tax loan is interest free and payable in 8 yearly installments starting from April 2008 and last installment payable before March, 2016.

2. Capitalised Borrowing Costs:

Addition to Fixed Assets include borrowing costs (including exchange difference considered as on adjustments to borrowings cost) amounting to Rs.3,196.87 Lacs (Previous Year Rs.1,697.57 Lacs)

3 (a) Out of fixed assets amounting to Rs.188.19 Lacs pertaining to Fine & Specialty segment forming part of Nandesari division and which were held of disposal since last financial year, assets worth Rs.67.71 Lacs were sold during the year at a loss of Rs.46.16 Lacs recognised in Statement of Profit & Loss. The remaining assets were revalued at Rs. 89.91 Lacs and loss on revaluation of Rs.30.57 Lacs is also recognised in Statement of Profit & Loss.

(b) In respect of Building held under Capital work in progress at Roha which was impaired in the year 2008-09, no further provision (Previous Year Rs.16.50 Lacs) is made and cumulative provision stands at Rs.381.00 Lacs as on Balance Sheet date.

(c) Further, in respect of Factory Building at Roha which was impaired in the year 2008-09, and subsequently put to alternate use in the year 2012-13, no further provision is made during the year and cumulative provision stands at Rs.23.03 Lacs as on Balance Sheet date.

(d) During the current year, the Company has provided for impairment loss of Rs.13.66 Lacs in respect of Plant & Machinery pertaining to Organic Intermediates segment at Taloja Division.

4. EMPLOYEE RETIREMENT BENEFITS

A) Gratuity

Description of the Plan

The Company has covered its Gratuity Liability by a Group Gratuity Policy named ''Employee Group Gratuity Assurance Scheme'' issued by Life Insurance Corporation of India. Under this plan, an employee at retirement is eligible for benefit, which will be equal to 15 days salary for each completed year of service. Thus, it is a defined benefit plan and the aforesaid insurance policy is the Plan Asset.

iii) The accumulated balance of Leave Encashment (unfunded) provided in the books as at March 31, 2014, is Rs.485.78 Lacs ( Rs.412.68 Lacs), which is determined on actuarial basis using Projected Unit Credit Method.

5. DISCLOSURE UNDER ACCOUNTING STANDARD 18 "RELATED PARTY DISCLOSURES"

(i) Subsidiary Companies: (Refer Note below)

Deepak Nitrite LLC, United States of America.

(ii) Associate Companies:

Deepak Gulf LLC, Oman.

(iii) Key Management Personnel

Shri C.K. Mehta Chairman

Shri D.C. Mehta Vice Chairman & Managing Director

Shri A.C. Mehta Managing Director

Shri Umesh Asaikar Executive Director & Chief Executive Officer

(iv) Companies over which key managerial personnel or their relatives are able to exercise significant Influence

Blue Shell Investment Private Limited * Check Point Credits & Capital Private Limited * Crossover Advisors Private Limited

* Crossover Trustees Private Limited * Deepak Asset Reconstruction * Deepak Clean Tech Limited * Deepak Fertilisers and Petrochemicals Corporation Limited * Deepak Foundation * Deepak International Limited * Deepak Medical Foundation * Deepak Research and Development Foundation * Deepak Novochem Technologies Limited. * Forex Leafin Private Limited

* Grey Point Investments Private Limited *Hardik Leafin Private Limited * Kawant Developers Corporation *Nucore Capital Management Private Limited * Pranawa Leafin Private Limited * Prolific Credits & Capital Private Limited * Skyrose Finvest Private Limited * Sofotel Infra Private Limited * Stepup Credits & Capital Private Limited * Stiffen Credits and Capital Private Limited * Stigma Credit & Capital Private Limited * Storewell Credits & Capital Private Limited * Sundown Finvest Private Limited * Superpose Credits & Capital Private Limited * Synergy Li Power Resources Private Limited * The Lakaki Works Private Limited * Yerrowada Investment Limited * Deepak Cybit Private Limited.

(v) Relative of Key Management Personnel

Shri M.D. Mehta

6. CONTINGENT LIABILITIES NOT PROVIDED FOR

Rs.in Lacs

As At As At March 31, 2014 March 31, 2013

a) In respect of Income Tax matters 147.46 46.92

b) In respect of Sales Tax / VAT matters 11.65 11.65

c) In respect of excise matters 221.51 98.15

d) Bank Guarantees:

- Financial 449.68 35.70

- Performance 2,825.51 1,669.84

e) In respect of Stamp duty matter 22.85 22.85

f) Disputed Labour Matters Amount not ascertained

In respect of (a) to (c),(e) & (f), future cash outflow in respect of contingent liabilities is determinable only on receipt of judgments pending at various forums/authorities.

Total 3,678.66 1,885.11

7. DISCLOSURE UNDER ACCOUNTING STANDARD-19 "LEASES"

Disclosure for Operating Leases:

The Company has leased office premises under operating lease. Lease payment debited to the Statement of Profit & Loss during the year ` 42.59 Lacs ( Rs.40.26 Lacs).

8. Previous year''s figures are shown in bracket and have been re-classified/regrouped to conform to this year''s classification/ groupings.


Mar 31, 2013

COMPANY OVERVIEW

Deepak Nitrite Limited (''DNL'' or ''the Company'') is a leading chemical manufacturing Company. The Company manufactures Organic Intermediates, Inorganic Intermediates and Fine & Speciality Chemicals.

1. Foreign Exchange Differences:

Pursuant to the provisions contained in the Companies (Accounting Standards) Amendment Rules, 2009, and related notifications of Ministry of Corporate Affairs, the Company has adjusted to fixed assets, foreign exchange differences amounting to Rs. 1,483.89 Lacs (Rs. 696.31 Lacs) on revaluation of long term foreign currency borrowing for acquisition of fixed assets.

Further, the Company has also opted to follow the extension of provisions made vide Notification dated December 29, 2011, issued by the Ministry of Corporate Affairs to the long term foreign currency borrowings other than those utilised for fixed assets. Accordingly, the Company has, with effect from April 1, 2011, amortised the foreign exchange loss incurred on such borrowings over their balance term. Total foreign exchange loss of Rs. 103.74 Lacs (Rs.125.21 Lacs) has been transferred to the "Foreign Currency Monetary Item Translation Difference Account" and Rs. 98.34 Lacs (Rs. 45.09 Lacs) has been amortised during the year underthe head "Exchange Fluctuation Loss Account".

2 (a) During the financial year 2010-11, Company had provided Impairment Loss of Rs. 156.64 Lacs on one of the Fine & Speciality Sagment assets of being a cash generating unit forming part of Nandesari divison. During the current financial year, the said asset has been dismantled. The said plant & equipments are held for disposal at the realisable value of Rs. 188.19 Lacs. Loss on discarding of these assets amounting to Rs. 248.37 Lacs has been recognised in Statement of Profit & Loss. Accordingly, the Impairment Provision ofRs. 156.64 Lacs has been reversed during theyear.

(b) During the year 2008-09, Company had provided Impairment Loss of Rs. 381.38 Lacs on the Building held under Capital work in progress at Roha. The said Building is not in use, hence further provision of Rs. 16.50 Lacs was recognised during the year. Accordingly, total Impairment provided till date stands atRs. 397.88 Lacs for the said asset.

(c) Also during the year 2008-09, Company had provided Impairment Loss ofRs. 89.00 Lacs on the Factory Buildings earlier used at Roha. Company has made modifications to the said Buildings and is suitable for manufacture of some of it''s products. Accordingly Impairment provision to the extent ofRs. 65.97 Lacs is reversed during theyear.

3. Employee Retirement Benefits A) Gratuity Description of the Plan:

The Company has covered its Gratuity Liability by a Group Gratuity Policy named ''Employee Group Gratuity Assurance Scheme'' issued by Life Insurance Corporation of India. Under this plan, an employee at retirement is eligible for benefit, which will be equal to 15 days salary for each completed year of service. Thus, it is a defined benefit plan and the aforesaid insurance policy is the Plan Asset.

4. Disclosure under AS 18 "Related Party Disclosures"

List of Parties:

(i) Associate Companies

Blue Shell Investment Private Limited * Check Point Credits & Capital Private Limited * Crossover Advisors Private Limited * Crossover Trustees Private Limited * Deepak Asset Reconstruction * Deepak Cleantech Limited * Deepak Fertilisers and Petrochemicals Corporation Limited * Deepak International Limited * Deepak Medical Foundation * Deepak Research and Development Foundation * Deepak Novochem Technologies Limited. * Forex Leafin Private Limited * Grey Point Investments Private Limited

* Hardik Leafin Private Limited * Kawant Developers Corporation * Nucore Capital Management Private Limited * Pranawa Leafin Private Limited * Prolific Credits & Capital Private Limited * Skyrose Finvest Private Limited * Sofotel Software Infra Private Limited

* Stepup Credits & Capital Private Limited * Stiffen Credits and Capital Private Limited * Stigma Credit & Capital Private Limited

* Storewell Credits & Capital Private Limited * Sundown Finvest Private Limited * Superpose Credits & Capital Private Limited

* Synergy Li Power Resources Private Limited *The Lakaki Works Private Limited * Yerowada Investment Limited.

(ii) Key Management Personnel

(i) Shri C. K. Mehta

(ii) Shri D. C. Mehta

(iii) Shri A. C. Mehta

(iii) Relative of Key Management Personnel

(i) Shri M. D. Mehta

5. Disclosure under AS-19 "Leases"

Disclosure for Operating Leases:

The Company has leased office premises under operating lease. Lease payment debited to the Statement of Profit & Loss during the yearRs.40.26 Lacs (Rs.3.37 Lacs).

6. Previous year''s figures are shown in bracket and have been re-classified to conform to this year''s classification.


Mar 31, 2012

COMPANY OVERVIEW

Deepak Nitrite Limited ('DNL' or 'The Company') is a leading chemical manufacturing Company. The Company manufactures Organic Intermediates, Inorganic Intermediates and Fine & Speciality Chemicals.

1. Foreign Exchange Differences:

Pursuant to the provisions contained in the Companies (Accounting Standards) Amendment Rules, 2009, and related notifications of the Ministry of Corporate Affairs, the Company has adjusted to fixed assets, foreign exchange differences amounting to Rs 696.31 lacs on revaluation of long term foreign currency borrowing for acquisition of fixed assets.

Further, the Company has also opted to follow the extension of provisions made vide Notification dated December 29, 2011, issued by the Ministry of Corporate Affairs to the Long Term Foreign Currency Borrowings other than those utilised for fixed assets. Accordingly, the Company has, with effect from April 1, 2011, amortised the foreign exchange loss incurred on such borrowings over their balance term. Total foreign exchange loss of Rs 125.21 lacs has been transferred to "Foreign Currency Monetary Item Translation Difference Account" and Rs 45.09 lacs has been amortised during the year under the head "Exchange Fluctuation Loss Account".

(a) Shares : Terms / Rights

i) Authorised Shares have been classified into Equity and Preference Shares.

ii) The Company has issued Equity Shares having par value of Rs 10/- per Share. Each holder of Equity Shares is entitled to one vote per Share. The Company declares and pays Dividends in Indian Rupees. The Dividend proposed by the Board of Directors is subject to the approval of the Shareholders at the ensuing Annual General Meeting.

iii) During the year ended March 31, 2012, the amount of per Share Dividend recognised as distribution to Equity Shareholders is Rs 6/- (Rs 6/-).

iv) In the event of liquidation of the Company, the holders of Equity Shares shall be entitled to receive remaining assets of the Company, after distribution of all Preferential amounts. No Preferential amounts exist as on Balance Sheet date. The distribution will be in proportion to the number of Equity Shares held by the Shareholders.

Term Loans

The Term Loan is obtained from Bank of Baroda while External Commercial Borrowings are obtained from (a) Standard Chartered Bank

(b) HSBC Bank (Mauritius) Limited and (c) DBS Bank Limited. These are Secured by first pari passu charge by way of mortgage of immovable properties of the Company, both present and future and hypothecation of movable assets of the Company and also by second pari passu charge over Current Assets of the Company. Charge in case of DBS Bank Limited is in the process of creation.

Repayment Schedule

a) Rates of Interest for Term Loan and External Commercial Borrowings are based on LIBOR plus agreed spread.

b) Term Loan from Bank of Baroda is repayable in equal half-yearly instalments of Rs 245 lacs with the last instalment payable on March 29, 2015.

c) External Commercial Borrowing from Standard Chartered Bank is repayable on half-yearly basis starting from August 23, 2013 with a step up repayment schedule with last instalment payable on February 23, 2018.

d) External Commercial Borrowing from HSBC Bank ( Mauritius) Limited is repayable on quarterly basis starting from March 30, 2014 with a step up repayment schedule with last instalment payable on March 29, 2018.

e) External Commercial Borrowing from DBS Bank Ltd is repayable on quarterly basis starting from February 3, 2014 with a step up repayment schedule with last instalment payable on November 1, 2018.

f) Deferred Sales Tax Loan is interest free and payable in 8 yearly instalments starting from April, 2008 and last instalment payable before March, 2016.

a) Cash Credit from Banks are Secured by a prior charge over Company's stocks of Raw Materials, Semi-Finished and Finished Goods, Consumable Stores and Book Debts and by second charge on all Fixed Assets by way of hypothecation and mortgage.

b) Cash Credit is repayable on demand and carries interest @ base rate plus range spread of 2.50% to 4.25% p.a.

c) Short Term Loans from Bank represent Buyers' Credit and Packing Credit including borrowing against Letter of Undertaking. This line of Credit is generally due within 180 days and carry interest in the range of LIBOR plus 1.5 % to 3 % p.a.

2. During financial year 2008-09, Company had provided impairment loss of Rs 69.60 lacs on the assets of DNPT Unit being a cash generating unit forming part of Inorganic Intermediates Segment. During the current financial year, the entire asset of this unit have been demolished / scrapped. Loss on demolition/ scrapping of these assets amounting to Rs 66.31 lacs has been recoginsed which includes cost of demolition of Rs 25 lacs and is net of scrap value realised Rs Nil. Accordingly, the impairment provision of Rs 69.60 lacs has been reversed during the year.

Note to above:

Foreign Exchange difference and Interest Includes:

i) Rs 696.31 lacs (Rs Nil) being exchange difference considered as an adjustments to borrowing costs. Out of the above Rs 46.17 lacs has been capitalised during the year.

ii) Interest is net of interest earned Rs 456.60 lacs (Rs Nil) on temporary deployment of capital funds. Out of the above, Rs 20.51 lacs related to capitalised amount has been transferred to Fixed Assets.

i) Aggregate amount of Unquoted Investments is Rs 110.53 lacs (Rs 110.53 lacs).

ii) Aggregate amount of Quoted Investments is Rs 22.39 lacs (Rs 22.39 lacs).

iii) Aggregate Market Price of Investment in Equity Instrument (Quoted) Rs 112.36 lacs (Rs 136.02 lacs).

3. EMPLOYEE RETIREMENT BENEFITS

A) Gratuity Description of the Plan:

The Company has covered its Gratuity Liability by a Group Gratuity Policy named 'Employee Group Gratuity Assurance Scheme' issued by Life Insurance Corporation of India. Under the plan, employee at retirement is eligible for benefit, which will be equal to 15 days salary for each completed year of service. Thus, it is a Defined Benefit Plan and the aforesaid insurance policy is the Plan Asset.

4. DISCLOSURE UNDER AS 18 "RELATED PARTY DISCLOSURES" ISSUED BY INSTITUTE OF CHARTERED ACCOUNTANTS OF INDIA

List of Parties:

(i) Associate Companies

Blue Shell Investment Private Limited - Check Point Credits & Capital Private Limited - Crossover Advisors Private Limited

- Crossover Trustees Private Limited - Deepak Asset Reconstruction Private Limited - Deepak Cleantech Limited - Deepak Fertilisers and Petrochemicals Corporation Limited - Deepak International Limited - Deepak Medical Foundation - Deepak Research and Development Foundation - Deepak Novochem Technologies Limited - Forex Leafin Private Limited - Grey Point Investments Private Limited - Hardik Leafin Private Limited - Kawant Development Corporation - Nucore Capital Management Private Limited - Pranawa Leafin Private Limited - Prolific Credits & Capital Private Limited - Skyrose Finvest Private Limited - Sofotel Software Services Private Limited - Stepup Credits & Capital Private Limited - Stiffen Credits and Capital Private Limited

- Stigma Credits & Capital Private Limited - Storewell Credits & Capital Private Limited - Sundown Finvest Private Limited - Superpose Credits & Capital Private Limited - The Lakaki Works Private Limited - Yerowada Investment Limited.

5. CONTINGENT LIABILITIES NOT PROVIDED FOR

March 31, 2012 March 31, 2011 Rs in Lacs Rs in Lacs

a) in respect of Income Tax matters 136.79 77.43

b) in respect of Sales Tax / VAT matters 18.62 17.11

c) in respect of Excise matters 90.92 64.65

d) Bank Guarantees:

- Financial 521.58 513.79

- Performance 352.97 339.59

e) in respect of disputed liability relating to non-utilisation of industrial plot within specified time frame 99.36 25.47

f) Disputed Labour Matters Amounts not ascertained In respect of (a) to (c) & (e) to (f) future cash outflow in respect of contingent liabilities is determinable only on receipt of judgments pending at various forums/authorities.

TOTAL 1,220.24 1,038.04

6. The Financial Statements for the year ended March 31, 2011 had been prepared as per the then applicable, pre-revised Schedule VI to the Companies Act, 1956. Financial Statements for the year ended March 31, 2012 has been prepared as per Revised Schedule VI. Accordingly, the previous year figures have also been reclassified to conform to this year's classification. The adoption of Revised Schedule VI does not impact recognition and measurement principles followed for preparation of Financial Statements.

7. Previous year's figures are shown in bracket.


Mar 31, 2011

1. Estimated amount of contracts (net of advances) remaining to be executed on capital account not provided for:



2. Contingent liabilities not provided for :

March 31, 2011 March 31, 2010 Rs. in Lacs Rs. in Lacs

(a) in respect of Income Tax matters 77.43 214.82

(b) in respect of Sales Tax / VAT matters 17.11 172.51

(c) in respect of Excise matters 64.65 64.65

(d) Bank Guarantees :

- Financial 513.79 320.12

- Performance 339.59 329.67

(e) in respect of disputed liability relating to non-utilisation of industrial plot within specified time frame 25.47 -

(f) Disputed labour matters Amounts not ascertained In respect of (a) to (c) & (e) to (f) future cash outflow in respect of contingent liabilities is determinable only on receipt of judgments pending at various forums/authorities.

Total 1038.04 1101.77

3. Security deposit of Rs. 400 lacs (Rs. 400 lacs) placed with Shri D. C. Mehta towards lease of residential premises.

4. Other Current Assets include estimated realisable value of assets held for disposal of Rs. 18.00 lacs (Rs. 60.99 lacs), accrued benefits under Duty Entitlement Pass Book Scheme of Rs. 407.26 lacs (Rs. 732.03 lacs) and Target Plus Scheme Rs. 84.98 lacs (Rs. 172.29 lacs).

5. The Company takes forward contracts to hedge exposures arising out of net foreign currency payables and receivables.

6. Disclosures pursuanttothe requirementsofAccounting Standards:

(a) Impairment of Assets:

Based on the assessment for any indication of impairment in the carrying amount of the fixed assets, Company has recognised impairment loss as on March 31, 2011 of fixed assets, being Plant and Machinery producing certain Fine & Speciality Chemicals by Rs. 156.64 lacs (Rs. Nil). The impairment is mainly on account of low economic performance, due to which the carrying amount of these assets is significantly higher then the current recoverable amount. Resultantly an amount of Rs. 156.64 lacs (Rs. Nil) has been recognized as impairment loss during the year.

(d) Disclosure under AS 18"Related Party Disclosures" issued by Institute of Chartered Accountants of India.

List of Parties:

(i) Associate Companies:

Blue Shell Investment Private Limited - Check Point Credits & Capital Private Limited - Crossover Advisors Private Limited - Crossover Trustees Private Limited - Deepak Asset Reconstruction - Deepak Cleantech Limited - Deepak Fertilisers and Petrochemicals Corporation Limited - Deepak International Limited - Deepak Medical Foundation - Deepak Novochem Technologies Limited - Forex Leafin Private Limited - Grey Point Investments Private Limited - Hardik Leafin Private Limited - Kawant Developers Corporation - Nucore Capital Management Private Limited - Pranawa Leafin Private Limited - Prolific Credits & Capital Private Limited - Skyrose Finvest Private Limited - Sofotel Infra Private Limited Stepup Credits & Capital Private Limited - Stiffen Credits and Capital Private Limited - Stigma Credit & Capital Private Limited - Storewell Credits & Capital Private Limited - Sundown Finvest Private Limited - Superpose Credits & Capital Private Limited - The Lakaki Works Private Limited - Yerowada Investment Limited.

(ii) Key Management Personnel:

(i) ShriC. K. Mehta

(ii) Shri D.C. Mehta

(iii) Shri A. C. Mehta

Defined Benefit Plan

The Employee's Gratuity Fund Scheme managed by a trust is a defined benefit plan. The present value of obligation is determined based on actuarial valuation using the projected unit credit method, which recognises each period of service as giving rise to additional unit of employee benefit entitlement and measures each unit separately to build up final obligation.

(ii) Leave Encashment

The accumulated balance of leave encashment (unfunded) provided, amounting to Rs. 3,56,21,930/- (Rs. 3,31,35,340/-) is determined on actuarial basis using projected unit credit method.

7. Additional information pursuant to the Provisions of Paragraph 3,4C&4D of Part II of Schedule VI to the Companies Act, 1956 (figures in bracket relate to previous year).

8. Previous year's figures are shown in bracket and regrouped / re-classified wherever necessary to conform to current year's groupings.


Mar 31, 2010

1. Estimated amount of contracts (net of advances) remaining to be executed on capital account not provided for: Rs. 92.81 lacs (Rs. 202.92 lacs).

2. Certain assets of Nitrite unit at Nandesari, Vadodara, were revalued on 31st October 1985 as per the valuation report submitted by M/s. P. C. Gandhi & Associates, Chartered Engineers and Government approved valuers, whereby original cost of Rs. 944.05 lacs as of that date was restated at replacement cost of Rs.1903.81 Lacs. The details of said assets as on Balance Sheet date net of subsequent deletions are as follows:

3. Security deposit of Rs. 400 lacs (Rs.400 lacs) placed with Shri D.C.Mehta towards lease of residential premises.

4. Other Current Assets include estimated realisable value of assets held for disposal of Rs. 60.99 lacs (Rs. 85.19 lacs), accrued benefits under Duty Entitlement Pass Book Scheme of Rs. 732.03 lacs (Rs. 573.41 lacs) and Target Plus Scheme Rs. 172.29 lacs (Rs. 213.31 lacs).

5. The Company takes forward contracts to hedge exposures arising out of net foreign currency payables and receivables. The unhedged exposure of foreign currency transactions is as follows:

6. 14, 90,586 Detachable Warrants allotted along with the Rights Issue on 5th May, 2006, were converted into equity shares of Rs. 10/ each at a premium of Rs. 90/- per share for cash during the year. The proceeds of the issue have been utilised for the purpose mentioned in the Letter of Offer.

7. Disclosures under Micro, Small and Medium Enterprise Development Act, 2006:

To the extent the company has received intimation from the "suppliers" regarding their status under the Micro, Small and Medium Enterprises Development Act, 2006, the details are provided as under:

(c) Disclosure under AS 18 "Related Party Disclosures" issued by the Institute of Chartered Accountants of India.

List of Parties:

(i) Associate Companies:

Blue Shell Investment Private Limited - Check Point Credits & Capital Private Limited - Crossover Advisors Private Limited - Crossover Trustees Private Limited - Deepak Asset Reconstruction - Deepak Fertilisers and Petrochemicals Corporation Limited - Deepak International Limited - Deepak Medical Foundation - Deepak Novochem Technologies Limited - Forex Leafin Private Limited - Grey Point Investments Private Limited - Hardik Leafin Private Limited - Kawant Developers Corporation - Nucore Capital Management Private Limited - Pranawa Leafin Private Limited - Prolific Credits & Capital Private Limited - Skyrose Finvest Private Limited - Sofotel Software Services Private Limited - Stepup Credits & Capital Private Limited - Stiffen Credits and Capital Private Limited - Stigma Credit & Capital Private Limited - Storewell Credits & Capital Private Limited - Sundown Finvest Private Limited - Superpose Credits & Capital Private Limited - The Lakaki Works Private Limited - Yerowada Investment Limited.

(ii) Key Management Personnel:

(i) ShriC.K.Mehta (ii) ShriD.C. Mehta (iii) ShriA.C. Mehta

Defined Benefit Plan

The Employees Gratuity Fund Scheme managed by a trust is a defined benefit plan. The present value of obligation is determined based on actuarial valuation using the projected unit credit method, which recognises each period of service as giving rise to additional unit of employee benefit entitlement and measures each unit separately to build up final obligation.

8. Previous years figures are shown in bracket and regrouped / re-classified wherever necessary to conform to current years groupings.

 
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