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Notes to Accounts of Diamines & Chemicals Ltd.

Mar 31, 2015

1.1 Rights, preferences and restrictions

i. The Company has only one class of shares referred to as equity shares having par value of ' 10. Each holder of equity shares is entitled to one vote per share.

ii. The Company declares and pays dividend in Indian Rupees. The dividend, if any, proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting. The Board of Directors, in their meeting on May 8, 2015 has not recommended any dividend for the year ended March 31, 2015.

During the year ended March 31,2014, no amount per share of dividend was distributed to equity shareholders and hence, no amount appropiatation for the year ended March 31,2014 was made on this account.

iii. In the event of liquidation of the Company, the holders of equity shares will be entitled to receive any of the 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.

2.1 As per the Guidance Note on "Treatment on General Reserve on Revaluation of Fixed Assets" issued by the Institute of Chartered Accountants of India (ICAI), for the year ended March 31,2014, the amount of depreciation, amounting to Rs. 986,644 on the revaluation of Fixed Assets, is transferred to the Statement of Profit and Loss. However, for the year ended March 31, 2015, as suggested in the Application Guide on the Provisions of Schedule II to The Companies Act, 2013 issued by ICAI, the amount of depreciation on the revaluation, amounting to Rs. 751,055, is withdrawn and transferred to General Reserve.

2.2 In terms of the Accounting Standard 28 on "Impairment of Assets", impairment loss of Rs. 69,573 on Revalued Asset provided during the year is adjusted against Revaluation Reserve.

Quality driven

3. Contingent Liabilities and Commitments : As At As At March 31, 2015 March 31, 2014

3.1 Contingent Liabilities (to the extent not provided for):

i. Claims against the Company not acknow ledged as debts 1,546,000 1,506,000

ii. Guarantees issued by the bankers on behalf of the Company 1,046,934 1,046,934

iii. In respect of the various advance licenses issued to the Company for the purposes of fulfilling the export and other related customs formalities, the Company has filed appeals and matters are pending before the Directorate General of Foreign trade (DGFT) 5,364,604 5,364,604

iv. Demand (including interest thereon), by the Provident Fund Authorities pending b efore the Gujarat High Court [(Net Of Provisions of Contingencies of Rs. 1,000,000 (March 31, 2014 : Rs. 1,000,000)] 2,750,000 2,550,000

v. Matters under disputes/appeals :

a. Income-tax 16,917,700 425,000

b. Service Tax/ Excise 11,843,151 11,033,773

4. Credit balances remaining unclaimed beyond the limitation period are written back except where obligations are perceived by management to be reasonably confirmed. Balances of creditors/advances from customers are subject to confirmation and consequent adjustments, if any.

5. In view of the loss for the current year, as per the provisions of the Income-tax Act, 1961, the Company is neither liable to tax as per the normal provisions nor liable under the provisions of Section 115JB and accordingly, no provision for tax is required to be made.

6. The previous year's figures, wherever necessary, have been regrouped/ reclassified to conform to the current year's presentation.


Mar 31, 2014

1. Rights, preferences and restrictions

i. The Company has only one class of shares referred to as equity shares having par value of Rs. 10. Each holder of equity shares is entitled to one vote per share.

ii. The Company declares and pays dividend in Indian rupees. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting. The Board of Directors, in their meeting on May 6, 2014 has not recommended any dividend for the year ended March 31, 2014.

During the year ended March 31,2013, the amount of per share dividend recognised as distribution to equity shareholders was Rs. 0.5. The total dividend appropriation for the year ended March 31, 2013 amounted to Rs. 5,722,951 including corporate dividend tax of Rs. 831,331.

iii. In the event of liquidation of the Company, the holders of equity shares will be entitled to receive any of the 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.

2. Amount withdrawn on account of depreciation on revaluation during the year is Rs. 986,644 (March 31, 2013: Rs. 986,644).

3. Working Capital facilities from a bank are secured by first charge by way of hypothecation over the entire current assets including stock of raw materials, Work-in-progress, finished goods, stores and spares, etc. bills/book- debts/receivables and other current assets. Further, the same are secured by way of second charge by way of hypothecation over the entire fixed assets acquired out of bank finance including equitable mortgage over Land and Building (other than fixed assets and Land and Building at Dhule - Windmill).

4. The Company has not received any intimation from the suppliers regarding their status under the Micro, Small and Medium Enterprises Development Act, 2006 and hence, the disclosure, if any, relating to amounts unpaid as at the year end together with interest paid/payable as required under the said Act have not been given.

5. Others include Statutory Dues, Advance from Customers and other year-end provisions.

6. Contingent Liabilities and Commitments : As At As At March 31, 2014 March 31, 2013

6.1 Contingent Liabilities (to the extent not provided for):

i. Claims against the Company not acknowledged as debts 1,506,000 1,436,000

ii. Guarantees issued by the bankers on behalf of the Company 1,046,934 1,046,934

iii. In respect of the various advance licenses issued to the Company for the purposes of fulfilling the export and other related customs formalities, the Company has filed appeals and matters are pending before the Directorate General of Foreign trade (DGFT) 5,364,604 6,472,696

iv. Demand (including interest thereon), by the Provident Fund Authorities pending before the Gujarat High Court [(Net Of Provisions of Contingencies of Rs. 1,000,000 (March 31, 2013 : Rs. 1,000,000)] 2,550,000 23,50,000

v. Matters under disputes/appeals :

a. Income-tax 425,000 425,000

b. Service Tax/ Excise 11,033,773 8,456,482

6.2 Commitments :

i. Estimated amount of contracts remaining to be

executed on capital account NIL NIL

Less : Advances NIL NIL

Net Estimated Amount NIL NIL

ii. Other Commitments NIL NIL

7. Credit balances remaining unclaimed beyond the limitation period are written back except where obligations are perceived by management to be reasonably confirmed. Balances of creditors/advances from customers are subject to confirmation and consequent adjustments, if any.

The estimate of future salary increases considered in actuarial valuation takes into account the general trend in inflation, seniority, promotion and other relevant factors, such as supply and demand in the employment market.

The expected return on plan assets is determined considering several applicable factors mainly the composition of the plan assets held and historical results of the return on plan assets. (*)

(*) To the extent information available from reports of Actuary The expected contribution is based on the same assumptions used to measure the Company''s Gratuity obligations as at March 31, 2014. The Company is expected to contribute Rs. 1,652,774 for the year ended March 31, 2015.

8. Segment Reporting:

The Company has identified two reportable primary segments, Speciality Chemicals and Power Generation in terms of Accounting Standard ("AS")17 on "Segment Reporting".

9. The previous year''s figures, wherever necessary, have been regrouped/ reclassified to conform to the current year''s presentation.


Mar 31, 2013

1.1 Rates and Taxes include Rs. 1,275,292 (March 31, 2012: NIL) and Interest of Rs. 3,607,422 (March 31, 2012: NIL) thereon shown under Interest Expense - Others (in Note 25). Demand in this regard was raised during the year.

2. Credit balances remaining unclaimed beyond the limitation period are written back except where obligations are perceived by management to be reasonably confirmed. Balances of creditors/advances from customers are subject to confirmation and consequent adjustments, if any.

3. The previous year`''s figures, wherever necessary, have been regrouped/ reclassified to conform to the current year`''s presentation.


Mar 31, 2012

1.1 Rights, preferences and restrictions

i. The Company has only one class of share referred to as equity shares having a par value of Rs. 10. Each holder of equity shares is entitled to one vote per share.

ii. The Company declares and pays dividend in Indian rupees. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting. The Board of Directors, in their meeting on May 17, 2012, proposed a final dividend of Rs. 1 per equity share. The proposal is subject to the approval of shareholders at the Annual General Meeting. The total dividend appropriation for the year ended amounted to Rs. 11,370,326 including corporate dividend tax of Rs. 1,587,086.

During the year ended March 31, 2011, the amount of per share dividend recognised as distribution to equity shareholders was Rs. 6 per share. The said includes dividend Rs. 4.50 per share as final dividend and Rs. 1.50 per share as interim dividend. The total dividend appropriation for the year ended amounted to Rs. 45,519,092 including corporate dividend tax of Rs. 6,386,132.

iii. In the event of liquidation, the equity shareholders are eligible to receive the remaining assets of the Company after distribution of all preferential amounts, in proportion to their shareholding.

2.1 Cumulative amount withdrawn on account of depreciation on revaluation is Rs. 986,644 (March 31, 2011: Rs. 1,065,473)

3.1 Working Capital facilities from the bank secured by hypothecation of the entire current assets including stock of raw materials, stock-in-process, finished goods, stores and spares etc. bills/book-debts/ receivables and other current assets.

4.1 The Company has not received any intimation from the suppliers regarding their status under the Micro, Small and Medium Enterprises Development Act, 2006 and hence, the disclosure, if any, relating to amounts unpaid as at the year end together with interest paid/payable as required under the said Act have not been given.

5.1 Other Payables include Statutory Dues, Advance from Customers and other year end liabilities provided.

6. Contingent Liabilities and Commitments As At As At March 31, 2012 March 31, 2011



6.1 Contingent Liabilities (to the extent not provided for):

i. Claims against the Company not acknowledged as debts 1,267,000 833,000

ii. Guarantees issued by the bankers on behalf of the Company 1,046,934 1,046,934

iii.In respect of the various advance licenses issued to the Company for the purposes of fulfilling the export and other related customs formalities, the Company has filed appeals and matters are pending before the Directorate General of Foreign trade (DGFT) 11,355,410 11,355,410

iv. Demand (including interest thereon), by the Provident Fund Authorities pending before the Gujarat High Court [(Net Of Provisions of Contingencies of Rs. 1,000,000 (March 31,2011 : Rs:1,000,000] 2,150,000 1,950,000

6.2 In earlier years, accumulated losses were adjusted against Revaluation Reserve created consequent to Revaluation of Land and Buildings; subsequent thereto, in absence of any balance in the Revaluation Reserve Account, additional depreciation on the revalued amount was charged to the Statement of Profit and Loss.

In terms of the Guidance Note on "Treatment of Reserve created on Revaluation of Fixed Assets" issued by the Institute of Chartered Accountants of India, accumulated losses and depreciation (including arrears of depreciation) should not be set off against the Revaluation Reserve Account. Since the accumulated losses cannot be set off against the Revaluation Reserve Account, the Company had decided to restore its Revaluation Reserve (as set off taken in earlier years) as on April 1, 2010. Accordingly, after considering the effect of additional depreciation, (had the same been adjusted against the Revaluation Reserve Account), as also the amount that would have been in the Revaluation Reserve Account in respect of the retirement or disposal of assets, the net amount of Rs. 33,646,681 was restored to the Revaluation Reserve Account and correspondingly, the equivalent amount was transferred from the General Reserve as on March 31, 2011.

7. Credit balances remaining unclaimed beyond the limitation period are written back except where obligations are perceived by management to be reasonably confirmed. Balances of creditors/advances from customers are subject to confirmation and consequent adjustments, if any.

8. Segment Reporting:

The Company has two reportable segments, Speciality Chemicals and Power Generation. Segments have been identified and reported taking into account nature of products and services, the differing risks and returns and the internal business reporting system.

9. Related Party transactions:

a. Following transactions were carried out in the ordinary course of business with the parties referred to in (b) below. There were no amounts written off or written back from such parties during the year. The related parties included in the various categories above, where transactions have taken

d. Foreign currency exposure that is not hedged by derivative instruments as on March 31, 2012


Mar 31, 2010

1. The previous years figures, wherever necessary, have been regrouped, reclassified and recast to conform to the curreht years classification.

As at As at March 31, 2010 March 31, 2009 Particulars Rupees Rupees

2. a. Estimated amount of contracts remaining to be 1,619,534 21,617,468 executed on capital account and not provided for

Less: Advances 212,500 7,308,847

Net Estimated Amount 1,407,034 14,308,621

b. Contingent liabilities not provided for :

i. Guarantees issued by the bankers on behalf of the 1,146,934 1,046,934 Company. These are covered by a charge created in favour of the bankers by way of hypothecation of stocks and debtors

ii. In respect of the various advance license issued to 1,779,410 359,820 the Company, the Company is in the process of fulfilling the export obligations & other related customs formalities. The Company is advised that liabilities in this respect are not likely to be significant and hence, no provision therefore has been made in the accounts.

iii. Demand (including interest thereon) by the Provident 1,750,000 1,600,000 Fund Authorities pending before the Gujarat High Court

(Net of Provisions for Contingencies of Rs. 1,000,000)

iv. Demand raised in respect of Income Tax (Amount Deposited Rs. NIL) 1,618,523 Nil

v. Other claims not acknowledged as debts 610,000 2,096,000

3. Credit balances remaining unclaimed beyond the limitation period are written back except where obligations are perceived by management to be reasonably confirmed. Balances of creditors/advances from customers are subject to confirmation and consequent adjustments, if any.

In terms of the above, among other amounts, a sum of Rs. 84,165,854 (Previous Year Rs. NIL) received from a supplier as advance has remained unclaimed beyond the limitation period has been written back and reflected as Accounts Written Back under "Other Income" [see Schedule 12].

4. Prior Period and Exceptional Items:

a. Prior Period item includes Rs. NIL (Previous Year Rs. 43,306) relating to interest income for year 2007-08.

b. Exceptional Item represents writeback of Rs. NIL (Previous Year Rs. 4,534,677) being the excess depreciation provided on Fixed Assets in earlier years.

5. Employee Benefits:

Consequent to adoption of Accounting Standard 15 (Revised 2005) on "Employee Benefits" issued by the Companies (Accounting Standards) Rules, 2006, as required by the Standard, the following disclosures are made:

6. Segment Reporting:

The Company has two reportable segments viz. Speciality Chemicals and Power Generation. Segments have been identified and reported taking into account nature of products and services, the differing risks and returns and the internal business reporting systems.

7. Related Party transactions:

a. Following transactions were carried out in the ordinary course of business with the partie referred to in (b) below. There were no amounts written off or written back from such partie during the year.

S.No. Relation Name of Related Party

1 Associate Alkyl Amines and Chemicals Ltd.

2 Key Management Personnel Mr.G.G.Chendwankar (upto March 31, 2009)

3 Enterprises over which key management None personnel exercise significant influence

4 Enternrises over which Associate Alkyl Speciality Chemicals Limited exercises significant influence - Subsidary of Associate

 
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