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Notes to Accounts of Ess Dee Aluminium Ltd.

Mar 31, 2016

1 : Suppliers/service providers covered under Micro, Small and Medium Enterprises (MSME) Development Act, 2006 have been determined to the extent such parties have been identified on the basis of information available with the Company. The disclosure relating to Micro and Small Enterprises are as

2 : Segment Information (Accounting Standard-17)

The Company''s entire activity is of advanced packaging solutions. As such there is only one segment viz; advanced packaging solutions, accordingly, no disclosure is required to be made under AS 17, segment reporting.

3. : Related Party Disclosures (Accounting Standard-18)

List of Related Parties and Relationship with whom transactions during the year 2015-16

Sr. Particulars__Particulars_

A Subsidiaries Flex Art FoilLimited

Ess Dee Aluminum PTE. Limited

B Key Management Personnel Mr. Sudip Dutta -Chairman

Mr. Kanwal Kishore - Executive Director wef 10.11.2015

& Cessation wef 29.02.2016

Mr. Ashis Bhattacharya - Managing Director

Ms. Vinaya Desai - Whole Time Director

Mr. Satyabrata Ray-Whole Time Director Cessation

wef 13.02.2016

Mr. Subir Ray-CFO Cessation wef 06.01.2016 Mr. Haresh Vala - CS Cessation wef 15.04.2015 Mr Manoj Jain - CS Joined wef 27.05.2015 C Relative of Key Management Personnel Ms. Aarti Dutta

Ms. Bhumika Ray Ms. Jayeeta Bhattacharya D Enterprises over which key management Vyoma Investment & Finance Co Pvt. Ltd.

Personnel and their relatives are able Ess Dee Eco Energy Pvt. Ltd.

to exercise significant influence Ess Dee Clean Coal Technologies Pvt. Ltd.

Ess Dee Infraventure Pvt. Ltd.

Clanergy Studios Pvt. Ltd.

The following transactions were carried out with the related parties in the ordinary course of business (Rs, In Lakhs

4. : Leases (Accounting Standard - 19)

Operating Lease

The Company has leased facilities under non-cancelable operating leases. The future lease payments in respect of these leases as at 31st March 2016 and 31st March 2015 are Minimum Lease payments

Ess Dee Aluminum Pte. Ltd. the wholly owned subsidiary has been established to support and facilitate the foreign business of the group with the added objective of reducing the cost of financing at a consolidation level. Though the subsidiary has not been able to commence these operations, the Company is in the process of strengthening infrastructure for this purpose. Hence the management is confident of the success of these operations from the next financial year.

5 : The Company is required to spend cumulatively Rs. 309.94 lakhs for the financial year 2015-16 towards Corporate Social Responsibility (CSR)

6 : Previous year figures have been accordingly re-grouped and reclassified.

1


Mar 31, 2015

1. Contingent Liabilities

Rs. in Lacs

Particulars 31st March 15 31st March 14

Contingent Liability

a) Claims against the Company not acknowledged as debt 1,403.21 1,347.95

b) Guarantees

- given for bank loans taken by its subsidiaries 2,700.00 4,502.99

- Others 270.00 275.45

Commitments

Capital Commitment 7,659.00 8,946.00

Total 12,032.21 15,072.39

Under the provisions of section 132 of Income Tax Act, 1961, Income Tax Authorities had carried out search and seizure proceedings at the premised of the company on 28th March, 2014 when they sought certain clarifications and documents in regard to the tax liability, if any, of the company. All relevant material was produced and provided to the IT officials. There is no undisclosed income tax evasion, levy of penalty for any previous years or current year and there will not be revision in income booked in the earlier accounting years. The matter shall be resolved as per provision of the Income tax law.

2. Suppliers/service providers covered under Micro, Small and Medium Enterprises (MSME) Development Act, 2006 have been determined to the extent such parties have been identified on the basis of information available with the Company. The disclosure relating to Micro and Small Enterprises as at 31st March 2015 are as under.

3. Segment Information ( Accounting Standard – 17)

The Company''s entire activity is of advanced packaging solutions. As such there is only one segment viz; advanced packaging solutions, accordingly, no disclosure is required to be made under AS 17, segment reporting.

4. Leases (Accounting Standard – 19)

Operating Lease

The Company has leased facilities under non-cancelable operating leases. The future lease payments in respect of these leases as at 31st March 2015 and 31st March 2014 are Minimum Lease payments.

Ess Dee Aluminium Pvt Ltd the wholly owned subsidiary has been established to support and facilitate the foreign business of the group with the added objective of reducing the cost of financing at a consolidation level. Though the subsidiary has not been able to commence these operations, the Company is in the process of strengthening infrastructure for this purpose. Hence the management is confident of the success of these operations from the next financial year.

5. Previous year figures have been accordingly re-grouped and reclassified


Mar 31, 2014

1. Contingent Liabilities

Particulars 31st March, 2014 31st March, 2013 Rs. In Lacs Rs. In Lacs

Contingent Liability a) Claims against the Company not acknowledge as debt 1947.95 837.28

b) Guarantees - * given for bank loans taken by its subsidiaries 4502.99 3,184.35 * Others 275.45 180.47

Total 6726.39 4,202.10

The Company was subject to search u/s 132 of The Income Tax Act, 1961 in the month of March 2014. The Tax Department is in the process of assessing the impact of the said search and has not raised any demand on the company till date.

2. Segment Information ( Accounting Standard - 17)

The Company''s entire activity is of advanced packaging solutions. As such there is only one segment viz; advanced packaging solutions, accordingly, no disclosure is required to be made under AS 17, segment reporting.

3. Leases (Accounting Standard - 19)

Operating Lease

The Company has leased facilities under non cancelable operating leases. The future lease payments in respect of these leases as at 31st March 2014 and 31st March 2013 are Minimum Lease payments 28.14 Previous year figures have been accordingly re-grouped and reclassified.


Mar 31, 2013

1.01 Segment Information (Accounting Standard D17)

The Company''s entire activity is of advanced packaging solutions. As such there is only one segment viz; advanced packaging solutions, accordingly, no disclosure is required to be made underAS 17, segment reporting.

1.02 Previous year figures have been accordingly re-grouped and reclassified


Mar 31, 2012

1. Balance with scheduled banks include Rs. 818.61 Lacs (PY Rs. 860.19 Lacs ) representing margin money for letter of credit and bank guarantees issued.

2. Section 205 of the companies Act 1956 mandates that companies transfer dividend that has been unclaimed for period of seven years from unpaid dividend account to the Investor Education and Protection Fund (IEPF), Accordingly if dividend is unclaimed for a period of seven years, it will be transferred to IEPF.

3.01 Contingent Liabilities

Particulars 31st March 12 31st March 11 Rs.in Lacs Rs.in Lacs

Contingent Liability

a) Claims against the Company not acknowledged as debt - -

b) Guarantees given for bank loans taken by its subsidiary Flex Art Foil Private Limited. 2,640.00 2,640.00

c) Other money for which the Company is contingent liable 456.49 430.23

Total 3,096.49 3,070.23

3.02 Suppliers/service providers covered under Micro, Small and Medium Enterprises (MSME) Development Act, 2006 have been determined to the extent such parties have been identified on the basis of information available with the Company. The Disclosure relating to Micro and Small Enterprises as at 31st March 2012 are as under.

3.03 Segment Information ( Accounting Standard 17)

The Company's entire activity is of advanced packaging solutions. As such there is only one segment viz; advanced packaging solutions, accordingly, no disclosure is required to be made under AS 17, segment reporting.

3.04 As per the requirements of Revised Schedule VI, the Company has re-classified its assets and liabilities into current and non-current based on the normal operating cycle, determined by the management. Previous year figures have been accordingly re-grouped and reclassified.


Mar 31, 2011

1 Merger of erstwhile India Foils Limited (IFL)

The Hon'ble Board for Industrial and Financial Reconstruction (BIFR) vide its order September 30, 2010 has sanctioned the Modified Rehabilitation cum Merger Scheme (Scheme) for the revival of erstwhile India Foils Limited (IFL), a subsidiary of Ess Dee Aluminium Limited (EDAL). According to the Scheme, IFL with effect from April 1, 2008 stands merged into EDAL without any further act, instrument or deed and without registration of any document. In accordance with the exchange ratio approved in the Scheme of Merger the Company has on October 30, 2010 issued & allotted 25,59,046 fully paid equity shares of Rs. 10/- each to the eligible share holders of erstwhile IFL.

2 Placement of Shares through QIP

During the current year, the Company made a Qualified Institutional Placement, in accordance with Chapter VIII of the Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2009, of 16,64,000 equity shares of Rs. 10/- each at a premium of Rs. 507.03 per share to Qualified Institutional Buyers on 7th July, 2010.

3 Contingent Liabilities

a) The Company has given guarantee to the electricity supply undertakings aggregating to Rs. 87.69 Lacs (PY 13.80 Lacs) which is secured by fixed deposit under lien to the bankto the extent of Rs 7.95 Lacs. (PY 3.45 Lacs)

b) The Company is under obligation under the EPCG and Advance License scheme to export Aluminium Foil and PVC film. The contingent liability under the guarantee amounted to Rs 133.07 Lacs (PY 179.17 Lacs), which is secured by fixed deposit under lien to the bankto the extent of Rs 116.97 Lacs. (PY 163.07 Lacs).

c) Guarantees given for a bank loan taken for its subsidiary Flex Art Foil Private Limited to the extent of Rs 2,640.00 Lacs (PY 3,058.60 Lacs)

d) Demand from Kolkata Port Trust in respect of increased lease rental amounting to Rs 186.18 Lacs (PY Rs. 186.18 Lacs) against the Company not acknowledged as debt. The matter is subjudice and is pending before the Appellate Authority for Industrial and Financial Reconstruction. The Estate Officer appointed under the Public Premises (Eviction of Unauthorized Occupants) Act, 1971 has served an order dated 10/12/2009 for eviction and auction of the Company's assets situated at Taratalla. The Company has filed an appeal before the District Judge Alipore Court, Kolkata challenging this order and is confident that the order of the Estate Officer will be overturned.

e) The Company has issued a bank guarantee to the customs authorities Kolkata Airport for a value of Rs. 23.29 Lacs (PY 23.29 Lacs) which is fully secured by a fixed deposit under lien to the bank.

4. In the opinion of the Board, the Current Assets, Loans and Advances have a value on realization in the ordinary course of business at least equal to the amount at which they are stated.

5 Segment Reporting (Accounting Standard -17)

The Company's entire activity is of advanced packaging solutions. As such there is only one segment viz; advanced packaging solutions, accordingly, no disclosure is required to be made under AS 17, segment reporting.

Additional information pursuant to paragraphs 3,4C and, 4D of part II of Schedule VI to the Companies Act, 1956.

6 Information regarding capacity, stocks, production and sale (as certified by Management)

i) Licensed Capacity: Not applicable

ii) Installed Capacity: Foil 37,000 Mtsp.a

PVC 4,200 Mtsp.a

(As certified by the management and being a technical matter accepted by the auditors)

7. Previous year's figures have been regrouped / reclassified wherever necessary.


Mar 31, 2010

1 Merger of India Foils Ltd

1.1 During the financial year 2008-09 along with Madras Aluminium Co. Ltd, the Company had filed a rehabilitation scheme with the Honourable Board for Industrial & Financial Reconstruction for rehabilitation of erstwhile India Foils Ltd. (IFL). This scheme was sanctioned by the Honble BIFR vide its order dated September 2, 2008. The first closing as per the arrangement was achieved on November 19, 2008. Pursuant to this order and the first closing, the Company acquired 14,70,00,000 equity shares of Rs.1/- each of IFL on November 19, 2008. This constituted to 89.4% stake making IFL its subsidiary from that date. The Company also subscribed to 12,50,000 Optionally Convertible Non Cumulative Preference Shares, and 96,28,115 Non-Convertible Non Cumulative Preference Shares of Rs.100/- each. .

1.2 Subsequent to IFL becoming a subsidiary, the Company estimated that significant investments would be needed to rehabilitate IFL. This was also necessitated by the then economic meltdown. Accordingly, the Monitoring Agency, Kotak Bank Ltd., appointed by the BIFR, on its instructions ,filed on 30th June 2009, a modified rehabilitation scheme with the Honble BIFR interlia proposing merger of IFL with the Company with effect from April 1, 2008.

1.3 The Honble Board for Industrial and Financial Reconstruction (BIFR) vide its order September 30, 2010 has sanctioned the Modified Rehabilitation – cum – Merger Scheme (Scheme) for the revival of IFL, a subsidiary of Essdee Aluminium Ltd (EDAL). According to the Scheme IFL with effect from April 1, 2008 stands merged into EDAL without any further act, instrument or deed and without registration of any document. The Board of Directors of EDAL had approved the audited accounts for the financial year 2009-10 at the Board meeting held on May 26, 2010. These accounts are reopened and reapproved in the meeting of the Board of Directors held on 30th October 2010 to incorporate the transactions on and from the appointed date i.e. 1st April 2008 as per the order of BIFR dated 30th September 2010.

1.4 The amalgamation has been accounted for under the "Pooling of Interest" method as prescribed by the accounting standard (AS 14) issued by the Institute of Chartered Accountants of India. Accordingly, the assets, liabilities and reserves of erstwhile India Foils Ltd as at April 01, 2008 have been taken over at their book values. As stipulated in the Scheme of merger all reserves of the transferor company have been transferred to the General Reserve Accounts except for balance lying in the " Profit and Loss Account" as on 31st March 2008 which has been credited to the profit and loss account of the merged entity. The revaluation reserve is retained as such.

1.5 In accordance with the exchange ratio approved in the Scheme of Merger the Company has on October 30, 2010 issued & allotted 25,59,046 fully paid equity shares of Rs.10/- each in aggregate to the equity shareholders and non convertible redeemable preference shareholder of IFL. The equity shares allotted to non convertible redeemable preference shareholder of IFL has been made at a premium of Rs 540 per share .These shares rank for dividend, voting rights and in all respects parri-passu with the existing equity shares of the Company. Accordingly, the appropriation for the proposed dividend includes dividend on the above shares.

1.6 The income accruing and expenses incurred by IFL during the period April 1, 2008 to March 31, 2010 have also been incorporated in these accounts. During the period between the appointed date and the effective date, as IFL carried on the existing business in "trust" on behalf of the Company, all vouchers, documents etc., for the period are in the name of IFL. The title deeds for property - owned and leased, licenses, agreements, loan documents and other assets are being transferred in the name of the Company.

2 Contingent Liabilities

a) The Company has given guarantee to the electricity supply undertakings aggregating to Rs. 13.80 Lacs (PY 13.80 Lacs) which is secured by fixed deposit under lien to the bank to the extent of Rs 3.45 Lacs. (PY 3.45 Lacs)

b) The company has given guarantee to bankers for loan taken by erstwhile IFL Rs. 7,400 Lacs (PY 4000)

c) The Company is under obligation under the EPCG and Advance License scheme to export Aluminium Foil and PVC film. The contingent liability under the guarantee amounted to Rs 179.17 Lacs (PY 258.77 Lacs), which is secured by fixed deposit under lien to the bank to the extent of Rs 163.07 Lacs. (PY 258.77 Lacs).

d) Guarantees given for a bank loan to its subsidiary Flex Art Foil Pvt Ltd to the extent of Rs 3,058.60 Lacs (PY 2,640 Lacs).

e) Demand from Kolkata Port Trust in respect of increased lease rental amounting to Rs 186.18 lacs (P Y Rs.155.05 lacs) against the Company not acknowledged as debt. The matter is subjudice and is pending before the Appellate Authority for Industrial and Financial Reconstruction. The Estate Officer appointed under the Public Premises (Eviction of Unauthorized Occupants) Act, 1971 has served an order dated 10/ 12/2009 for eviction and auction of the Companys assets situated at Taratalla. The Company has filed an appeal before the District Judge Alipore Kolkata Court challenging this order and is confident that the order of the Estate Officer will be overturned.

f) The Company has issued a bank guarantee to the customs authorities Kolkata Airport for a value of Rs 23.29 Lacs (PY 23.29 Lacs) which is fully secured by a fixed deposit under lien to the bank

3. In the opinion of the Board, the Current Assets, Loans and Advances have a value on realization in the ordinary course of business at least equal to the amount at which they are stated.

4 Segment Reporting (Accounting Standard – 17)

The Companys entire activity is of advanced packaging solutions. As such there is only one segment viz; advanced packaging solutions, accordingly, no disclosure is required to be made under AS 17, segment reporting.

5 Related Party Disclosures (Accounting Standard 18)

5.1 List of Related Parties and Relationship with whom transactions during the year 2009-10

A. Subsidiary – Flex Art Foil Private Limited

B. Key Management Personnel - Mr. Sudip Dutta, CMD

- Mr. Prasenjit Datta

- Mr. Rajib Mukhophadaya

- Mr. Soumitra Barari

C. Relatives of Key Management Personnel - Mrs. Aarti Dutta

D. Enterprises over which key management - M/s Parth International personnel and their relatives are able - M/s Neat Pack to exercise significant influence - Vyoma Investment & Finance Co. Pvt Ltd.

6. Previous years figures have been regrouped / reclassified wherever necessary. The previous years figures are not comparable as the same does not include the figures of merged entity erstwhile India Foils Ltd.

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