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Notes to Accounts of Excel Industries Ltd.

Mar 31, 2015

1. CORPORATE INFORMATION

Excel Industries Limited (the Company) is a public company domiciled in India.Its shares are listed on two stock exchanges in India. The Company is engaged in manufacturing and selling of Chemicals, Pharma intermediates and environmental products. Chemicals comprising of Industrial and specialty chemicals and Pesticides Intermediates. environmental products comprising of soil Enricher, Bio-Pesticides and other Bio-products. The Company caters to both domestic and international markets. The Company is also engaged in manufacturing activity on behalf of third parties.

2. BASIS OF PREPARATION

The financial statements of the Company have been prepared in accordance with the generally accepted accounting principles in India (Indian GAAP). The Company has prepared these financial statements to comply in all material respects with the accounting standards notified under section 133 of the Companies Act 2013, read together with paragraph 7 of the Companies (Accounts) Rules 2014. The financial statements have been prepared on an accrual basis and under the historical cost convention, except in case of assets for which revaluation is carried out. The accounting policies adopted in the preparation of financial statements are consistent with those of previous year.

(b) Terms/rights attached to equity shares

The Company has only one class of equity shares having par value of Rs. 5 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 in the ensuing Annual General Meeting. during the year ended March 31, 2015, the amount of per share dividend recognised as distributions to equity shareholders is Rs. 7/- (including Interim dividend Rs. 3/-) (Previous year: Rs. 3.75/-)

In the event of liquidation of the Company, the holders of equity shares will 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.

The Company had issued and allotted 20,00,000 fully convertible warrants of face value of Rs. 69/- each on a preferential basis aggregating to Rs. 1,380 lacs to utkarsh Global Holdings Private Limited, a promoter group Company, pursuant to a special resolution passed in the Extraordinary General Meeting held on 15 March 2014. The said issue was pursuant to section 81 (1A) of the Companies Act, 1956 and sEBI (ICDR) Regulations, 2009.

Each such warrant is convertible at the option of the holder of the warrants into one equity share of face value of Rs. 5/- each of the Company at a premium of Rs. 64/- per equity share. The Company has received Rs. 345 lacs being 25% of consideration of the warrants.

During the year, warrant rights has been exercised and accordingly 10 lacs fully convertible warrants had been converted to 10 lacs equity shares of Rs. 5 each after receiving balance money from utkarsh Global Holdings Private Limited. The balance warrants will, at the option of the holder, be converted into equity shares in one or more tranches, but not later than 18 months from the date of their allotment ie 27 March, 2014.

3. DETAILS OF EMPLOYEE BENEFITS (I) Defined Benefit Plan Gratuity

The Company has a defined benefit gratuity plan. Every employee who has completed five years or more of service gets gratuity on retirement at 15 days of last drawn salary for each completed year of service. If an employee completes more than 25 years of service then instead of 15 days, he/she will get gratuity on retirement at 22 days last drawn salary. The aforesaid liability is provided for on the basis of an actuarial valuation made at the end of the financial year. The scheme is funded with insurance Companies in the form of qualifying insurance policies.

The following tables summaries the components of net benefit expense recognised in the statement of profit and loss and the funded status and amounts recognised in the balance sheet for the respective plans.

(II) Defined contribution Plans:

(i) Provident Fund is a defined contribution scheme established under a State Plan.

(ii) superannuation fund is a defined contribution scheme. The scheme is funded with an insurance Company in the form of a qualifying insurance policy.

4. RELATED PARTY DISCLOSURES AS REQUIRED BY ACCOUNTING STANDARD (AS)-18 "RELATED PARTY DISCLOSURES".

(1) Related parties where control exists:

Subsidiaries

Kamaljyot Investments Limited Excel Bio Resources Limited

Joint Venture

Multichem Industries (a partnership firm)

(2) Related parties with whom transactions have taken place during the year:

enterprises owned or significantly influenced by key management personnel or their relatives or through companies/entities which are controlled/ significantly influenced by the KMP and their relatives

Agrocel Industries Limited

Anshul specialty Molecules Ltd

Divakar Techno specialities & Chemicals Ltd.

excel Crop Care Limited

Good Rasayan Limited (upto 30.09.2014)

Transpek Industry (europe) Limited

Transpek Industry Limited

utkarsh Global Holdings Pvt. Ltd.

Key Management Personnel

shri Ashwin C. shroff (Chairman and Managing director)

smt. usha A. shroff (executive Vice Chairperson)

shri Ravi Ashwin shroff (executive director w.e.f 3rd september, 2014)

shri s. R. Potdar (executive director upto 2nd september, 2014)

Relatives of KMP

shri Hrishit Ashwin shroff (son of shri Ashwin C. shroff and smt. usha A. shroff ) smt. Anshul A. bhatia (daughter of shri Ashwin C. shroff and smt. usha A. shroff) shri. Amrish s. bhatia (son in law of Ashwin C. shroff and smt. usha A. shroff ) smt. Amrita R. shroff (Wife of shri Ravi A. shroff)

Kr. Parthiv R. shroff (son of shri Ravi A. shroff)

Kr. shreyaan R. shroff (son of shri Ravi A. shroff)

5. OPERATING LEASES

Office premises and godowns are obtained on operating leases for various tenors. Except for the Office premises, none of the operating leases are renewable. In respect of office premises, the operating lease are renewable for further period of five years, with an escalation clause of 5% over the existing lease rent. There are no restrictions imposed by lease agreements/arrangements.

For the year ended For the year ended March 31, 2015 March 31, 2014 Rs. in Lacs Rs. in Lacs

Bills discounted 2,77.85 5,05.91

Disputed income-tax liability 7,10.50 21,01.91

Disputed excise duty liability 7,60.58 6,85.90

Disputed sales tax liability 16.52 16.52

Disputed custom duty liability 72.44 27.43

Disputed service tax liability — 48.02

Guarantees given by Company's bankers on behalf of the Company to third parties 1,31.60 21.79

Claims against the Company not acknowledged as debts 24.31 24.31

Liability in respect of claims made by workers and contract labourers Amount not Amount not ascertainable ascertainable

6. DETAILS OF CORPORATE SOCIAL RESPONSIBILITY (CSR):

As a responsible corporate citizen, our CSR strategy complements our business philosophy and objectives. During the year, the company had as its social responsibility, partnered with its group NGos like shree VRTI, samarth Gram Vikas Trust etc and other reputed organisations for undertaking various social activities in the field of education, employment through vocational training activities, agricultural development, environment and nature conservation.

During the year the company has incurred an amount of Rs. 38.91 lacs (Previous Year: Rs. 5.17 lacs) towards the above mentioned activities.

7. PREVIOUS YEAR FIGURES

Previous Year figures have been regrouped/reclassified, where necessary to conform to this year's classification.


Mar 31, 2014

CORPORATE INFORMATION

Excel Industries Limited (the Company) is a public company domiciled in India and incorporated under the provisions of the Companies Act, 1956. Its shares are listed on two stock exchanges in India. The Company is engaged in manufacturing of Chemicals, Pharma intermediates and Environmental products. Chemicals comprising of Industrial and Specialty chemicals and Pesticides Intermediates. Environmental products comprising of Soil Enricher, Bio-Pesticides and other Bio-products. The Company is also engaged in manufacturing activity on behalf of third parties.

BASIS OF PREPARATION

The financial statements of the Company have been prepared in accordance with generally accepted accounting principles in India (Indian GAAP). The Company has prepared these financial statements to comply in all material respects with the accounting standards notified under the Companies (Accounting Standards) Rules, 2006, (as amended) and the relevant provisions of the Companies Act, 1956, read with General circular 8/2014 dated 4 April 2014, issued by the Ministry of Corporate Affairs in respect of section 133 of the Companies Act, 2013. The financial statements have been prepared on an accrual basis and under the historical cost convention, except in case of assets for which revaluation is carried out. The accounting policies have been consistently applied by the Company are consistent with those used in the previous year.

All assets and liabilities have been classified as current or non-current as per the Company''s normal operating cycle and other criteria set out in the Schedule VI to the Companies Act, 1956. Based on the nature of products and the time between the acquisition of assets for processing and their realisation in cash and cash equivalents, the Company has ascertained its operating cycle as 12 months for the purpose of current - non-current classification of assets and liabilities.

1 (a) Terms/rights attached to equity shares

The Company has only one class of equity shares having a par value of Rs. 5/- per share. Each holder of equity share carries one vote and is entitled to dividend that may be declared by the Board of Directors, which is subject to the approval of the shareholders in the ensuing Annual General Meeting.

During the year ended March 31, 2014, the amount of per share dividend recognised as distributions to equity shareholders was Rs. 3.75/- (Previous year: Rs. 3/-)

In the event of liquidation of the Company, the holders of equity shares will 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.

(b) Loan from Bank of India amounting to Rs. 5,23.61 lacs (Previous Year: Rs. Nil) is for a period of five years carrying interest rate of 12% p.a. and is secured by first exclusive charge by way of hypothecation of plant and machinery and further secured by equitable mortgage of land and buildings of the factory located at Roha.

(c) Loan from HDFC Bank Ltd. amounting to Rs. 10,00 lacs (Previous Year: Rs. Nil ) is for a period of five years carrying rate of interest @12.6% p.a. and is secured by exclusive charge by way of hypothecation of entire movable assets at Lote Parashuram and further secured by equitable mortgage of immovable assets at Lote Parashuram.

(d) Term loan under vehicle finance from a financial institution amounting to Rs. 21.86 lacs (Previous Year: Rs. 37.21 lacs) carrying interest rate ranging from 12% to 14 % p. a. repayable in equated monthly instalments and secured by hypothecation of the vehicles acquired by utilising the said loans.

(e) Finance lease obligation to Siemens Financial Services Pvt. Ltd amounting to Rs. 5,22.59 lacs (Previous Year: Rs. Nil) is for a period of three years and carry the interest @ 12.50% p. a.

(f) Deposits from shareholders and public are repayable after two and three years from the respective dates of deposits and carry the interest @ 9.5% p.a. and @ 10% p.a. respectively.

The Company has recognised deferred tax asset since the management believes that the reversal of the timing difference on account of depreciation would result in sufficient future taxable income against which the said deferred tax asset can be realised.

Cash credit, packing credit and working capital demand loan from banks are secured by hypothecation of all tangible movable assets both present and future including stock of raw materials, finished goods, goods in process, stores and trade receivable etc and is further secured by a second charge on the fixed assets at Roha and Lote Parashuram. The cash credit, packing credit and working capital demand loan is repayable on demand and carries interest rates @ 10.45% to 13.5% p.a.

Outstanding foreign currency buyer''s credit loan are unsecured and carry an interest rate ranging from libor plus 85 bps to 130 bps.

Short term unsecured loan from HDFC Bank Ltd is payable within a period of six months and carries interest rate of 11.25% p.a and unsecured loan from YES Bank Ltd is payable within a period of twelve months and carries interest rate of 12.75% p.a.

Inter Corporate Deposits are repayable within a period of 3 months and carries interest rates @ 12% to 12.5% p.a.

Margin money deposits given as security

Margin money deposits with a carrying amount of Rs. 81.67 lacs (Previous Year: Rs. 36.41 lacs) have been given against opening of Letter of Credit Account with the Bank and Bank guarantee

Note:- Excise duty on sales amounting to Rs. 40,53.22 lacs (Previous Year: Rs. 36,38.45 lacs) has been reduced from sales in statement of profit and loss and excise duty increase/ decrease in stock amounting to Rs. 6.62 lacs (Previous Year: Rs. 13.34 lacs) has been considered (income)/expenses in Note 22 of financial statements.

2. MONEY RECEIVED AGAINST CONVERTIBLE WARRANTS ISSUED

The Company has issued and allotted 20,00,000 fully convertible warrants of face value of Rs. 69/- each on a preferential basis aggregating to Rs. 13,80 lacs (Previous Year Rs. Nil) to Utkarsh Global Holdings Private Limited, a promoter group Company, pursuant to the special resolution passed in the Extraordinary General Meeting held on 15 March 2014. The said issue was pursuant to Section 81 (1A) of the Companies Act, 1956 and SEBI (ICDR) Regulations, 2009.

Each such warrant is convertible at the option of the holder of the warrants into one equity share of face value of Rs. 5/- each of the Company at a premium of Rs. 64/- per equity share. The Company has received Rs. 345 lacs being 25% of consideration of the warrants.

The warrants will, at the option of the holder be converted into equity shares in one or more tranches, but not later than 18 months from the date of their allotment i.e. 27 March, 2014.

3. DETAILS OF EMPLOYEE BENEFITS

(I) Defined Benefit Plan Gratuity

The Company has a defined benefit gratuity plan. Every employee who has completed five years or more of service gets gratuity on retirement at 15 days of last drawn salary for each completed year of service. If an employee completes more than 25 years of service then instead of 15 days, he/she will get gratuity on retirement at 22 days last drawn salary. The aforesaid liability is provided for on the basis of an actuarial valuation made at the end of the financial year. The scheme is funded with insurance Companies in the form of qualifying insurance policies.

The following tables summaries the components of net benefit expense recognised in the Statement of profit and loss and the funded status and amounts recognised in the balance sheet for the respective plans.

The overall expected rate of return on assets is determined based on the market prices prevailing on that date, applicable to the period over which the obligation is to be settled. There has been significant change in the expected rate of return on assets due to the improved stock market scenario

4. Notes:

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

2. Amounts for the current and previous four periods are as follows: [AS15 Para 120(n)] [1]

5. Notes:

1. The Company is organised into two business segments namely:

(a) Chemicals - Comprising of Industrial and Specialty Chemicals and Pesticides Intermediates.

(b) Environment - Comprising of Soil enricher, Bio - pesticides and other Bio products.

2. Segment revenue in the above segments includes sales, export incentives, processing charges and other income from operations.

3. Segment Revenue in the geographical segments considered for disclosure are as follows:

(a) Revenue within India includes sales to customers located within India.

(b) Revenue outside India includes sales to customers located outside India.

4. Segment Revenue, Results, Assets and Liabilities includes the respective amounts identifiable to each of segments and amounts allocated on a reasonable basis.

6. OPERATING LEASES

Office premises and godowns are obtained on operating leases for various tenors. Except for the Office premises, none of the operating leases are renewable. In respect of Office premises, the operating lease are renewable for further period of five years, with an escalation clause of 15% over the existing lease rent. There are no restrictions imposed by lease agreements/arrangements.

7. CONTINGENT LIABILITIES

For the year ended For the year ended March 31, 2014 March 31, 2013 Rs. in Lacs Rs. in Lacs

Bills discounted 5,05.91 8,11.93

Disputed Income-tax liability 21,01.91 17,11.50

Disputed Excise Duty liability 6,85.90 4,50.19

Disputed Sales Tax liability 16.52 19.96

Disputed Custom duty tax liability 27.43 21.78

Disputed Service Tax liability 48.02 32.22

Guarantees given by Company''s Bankers on behalf of the Company to third parties 21.79 82.14

Claims against the Company not acknowledged as debts 24.31 13.46

Liability in respect of claim made by workers and contract labourers Amount not Amount not ascertainable ascertainable

8. PREVIOUS YEAR FIGURES

Previous Year figures have been regrouped/reclassified, where necessary to conform to this year''s classification.


Mar 31, 2013

1. CORPORATE INFORMATION

Excel Industries Limited (the Company) is Rs. public company domiciled in India and incorporated under the provisions of the Companies Act, 1956. Its shares are listed on two stock exchanges in India. The Company is engaged in manufacturing of Chemicals and Environmental products. Chemicals comprising of Industrial and Specialty chemicals and Pesticides Intermediates. Environmental products comprising of Soil Enricher, Bio - Pesticides and other Bio-products. The Company is also engaged in manufacturing activity on behalf of third parties. In the current year, the Company has also commenced production of pharma intermediates.

2. BASIS OF PREPARATION

The financial statements of the Company have been prepared in accordance with generally accepted accounting principles in India (Indian GAAP). The Company has prepared these financial statements to comply in all material respects with the accounting standards notified under the Companies (Accounting Standards) Rules, 2006, (as amended) and the relevant provisions of the Companies Act, 1956. The financial statements have been prepared on an accrual basis and under the historical cost convention, except in case of assets for which revaluation is carried out. The accounting policies have been consistently applied by the Company are consistent with those used in the previous year.

All assets and liabilities have been classified as current or non-current as per the Company''s normal operating cycle and other criteria set out in the Schedule VI to the Companies Act, 1956. Based on the nature of products and the time between the acquisition of assets for processing and their realisation in cash and cash equivalents, the Company has ascertained its operating cycle as 12 months for the purpose of current - non-current classification of assets and liabilities.

3. RELATED PARTY DISCLOSURES

Names ol related parties and related party relationship

Subsidiaries

Kamaljyot Investments Limited Excel Bio Resources Limited

Associate

RomVijay Bioo Tech Private Limited (upto May 3,2012)

Jointly Controlled Entity

Wexsam Limited, Hong Kong

Enterprises owned or significantly influenced by Key Management Personnel or their relatives

Agrocel Industries Limited

Anshul Specialty Molecules Limited

C. C. Shroft Research Institute

C. C. Shroff Self Help Centre

Dipkanti Investments & Financing Private Limited

Divakar Chemicals Limited

Excel Crop Care Limited

Good Rasayan Limited

Hyderabad Chemicals Limited

Hyderabad Chemicals Products Limited

Kutch Crop Services Limited

Pritami Investments Private Limited

Rashtriya Seva Trust

Shri Seetha Rama Seva Sadan

Shrodip Investments Private Limited

Shrujan

Transpek Industry Limited

Transpek-Silox Industry Limited

Transpek Industry (Europe) Limited

Utkarsh Chemicals Private Limited

Key Management Personnel

Shri Ashwin C. Shroff (Chairman and Managing Director)

Smt. Usha A. Shroff (Executive Vice Chairperson)

Shri Dipesh K. Shroff (Director)

Shri Atul G. Shroff (Director)

Shri Ravi Ashwin Shroff (Son of Shri Ashwin C, Shroff)

Shri S. R. Potdar (Executive Director)

Relatives of Key Management Personnel

Shri Kantisen C. Shroff (Father of Shri Dipesh K. Shroff) Smt. Shruti Atul Shroff (Wife of Shri Atul G. Shroff) Kum. Vishwa Atul Shroff (Daughter of Shri Atul G. Shroff) Smt. Chanda Kantisen Shroff (Mother of Shri Dipesh K. Shroff) Smt. Preeti Dipesh Shroff (Wife of Shri Dipesh K. Shroff) Shri Hrishit Ashwin Shroff (Son of Shri Ashwin C. Shroff) Smt. Chetna Praful Saraiya (Sister of Shri Atul G. Shroff) Smt. Hiral Tushar Dayai (Sister of Shri Atul G. Shroff) Smt. Anshul Amrish Bhatia (Daughter of Shri Ashwin C. Shroff) Smt. Ami Abhay Saraiya (Sister of Shri Dipesh K. Shroff)

4. PREVIOUS YEAR FIGURES

Previous Year figures have been regrouped/reclassified, where necessary to confirm to this year''s classification.


Mar 31, 2012

1. CORPORATE INFORMATION

Excel Industries Limited (the Company) is a public company domiciled in India and incorporated under the provisions of the Companies Act, 1956. Its shares are listed on two stock exchanges in India. The company is engaged in manufacturing of Chemicals and Environmental products. Chemicals comprising of Industrial and Specialty chemicals and Pesticides Intermediates. Environmental products comprising of Soil Enricher, Bio-Pesticides and other Bio-products. The Company is also engaged in manufacturing activity on behalf of third parties.

2. BASIS OF PREPARATION

The financial statements of the Company have been prepared in accordance with generally accepted accounting principles in India (Indian GAAP). The Company has prepared these financial statements to comply in all material respects with the accounting standards notified under the Companies (Accounting Standards) Rules, 2006, (as amended) and the relevant provisions of the Companies Act, 1956. The financial statements have been prepared on an accrual basis and under the historical cost convention, except in case of assets for which revaluation is carried out. The accounting policies have been consistently applied by the Company are consistent with those used in the previous year.

The accounting policies adopted in the preparation of financial statements are consistent with those of previous year, except for the change in accounting policy explained below.

All assets and liabilities have been classified as current or non-current as per the Company's normal operating cycle and other criteria set out in the Schedule VI to the Companies Act, 1956. Based on the nature of products and the time between the acquisition of assets for processing and their realisation in cash and cash equivalents, the Company has ascertained its operating cycle as 12 months for the purpose of current - non-current classification of assets and liabilities.

3. Notes:

1. The Company is organised into two business segments namely:

(a) Chemicals - Comprising of Industrial and Specialty Chemicals and Pesticides Intermediates.

(b) Environment - Comprising of Soil enricher, Bio - pesticides and other Bio products.

2. Segment revenue in the above segments includes sales, export incentives, processing charges and other income from operations.

3. Segment Revenue in the geographical segments considered for disclosure are as follows:

(a) Revenue within India includes sales to customers located within India.

(b) Revenue outside India includes sales to customers located outside India.

4. Segment Revenue, Results, Assets and Liabilities include the respective amounts identifiable to each of segments and amounts allocated on a reasonable basis.

5. RELATED PARTY DISCLOSURES

Names of related parties and related party relationship

Subsidiaries

Kamaljyot Investments Limited

Excel Bio Resources Limited (w.e.f. September 30, 2011)

Associate

RomVijay Bioo Tech Private Limited

Jointly Controlled Entity

Wexsam Limited, Hong Kong

Enterprises owned or significantly influenced by Key Management personnel or their relatives

Agrocel Industries Limited

Anshul Specialty Molecules Limited

C. C. Shroff Research Institute

C. C. Shroff Self Help Centre

Dipkanti Investments & Financing Private Limited

Excel Crop Care Limited

Excel Crop Care (Europe) NV

Good Rasayan Limited

Hyderabad Chemical Limited

Hyderabad Chemical Products Limited

Kutch Crop Services Limited

Mumukshu Finance & Services Private Limited

Rashtriya Seva Trust

Pritami Investments Private Limited

Samarth Gram Vikas Trust

Shrodip Investments Private Limited

Shroff Foundation Trust

Shrujan

Transpek Industry Limited

Transpek-Silox Industry Limited

Transpek Industry (Europe) Limited

TML Industries Limited

Utkarsh Chemicals Private Limited

key Management personnel

Shri Ashwin C. Shroff (Chairman and Managing Director)

Smt. Usha A. Shroff (Executive Vice Chairperson)

Shri Dipesh K. Shroff (Director)

Shri Atul G. Shroff (Director)

Shri Ravi Ashwin Shroff (Son of Shri Ashwin C. Shroff)

Shri S. R. Potdar (Executive Director)

Relatives of key Management personnel

Shri Kantisen C. Shroff (Father of Shri Dipesh K. Shroff)

(Late) Smt. Shanti Govindji Shroff (Mother of Shri Atul G. Shroff)

Smt. Shruti Atul Shroff (Wife of Shri Atul G. Shroff)

Kum. Vishwa Atul Shroff (Daughter of Shri Atul G. Shroff)

Smt. Chanda Kantisen Shroff (Mother of Shri Dipesh K. Shroff)

Smt. Preeti Dipesh Shroff (Wife of Shri Dipesh K. Shroff)

Shri Hrishit Ashwin Shroff (Son of Shri Ashwin C. Shroff)

Smt. Chetna Praful Saraiya (Sister of Shri Atul G. Shroff)

Shri Praful Manilal Saraiya (Brother-in-law of Shri Atul G. Shroff)

Smt. Hiral Tushar Dayal (Sister of Shri Atul G. Shroff)

Shri Tushar Charandas Dayal (Brother-in-law of Shri Atul G. Shroff)

Smt. Anshul Amrish Bhatia (Daughter of Shri Ashwin C. Shroff)

Shri Dilip G. Bhatia (Brother-in-law of Shri Ashwin C. Shroff)

5. OPERATING LEASES

Office premises and godowns are obtained on operating leases for various tenors. Except for the Office premises, none of the operating leases are renewable. In respect of Office premises, the operating lease are renewable for further period of two years, with a escalation clause of 15% over the existing lease rent. There are no restrictions imposed by lease agreements/ arrangements. All the aforestated leases are cancellable as per terms and condition mentioned in the agreement.

7. CONTINGENT LIABILITIES

For the year ended For the year ended March 31, 2012 March 31, 2011 Rs in Lacs Rs in Lacs

Bills discounted 1,07.80 __

Disputed Income-tax liability 6,50.50 9,09.74

Disputed Excise Duty liability 4,27.98 1,79.52

Disputed Sales Tax liability 34.09 34.09

Disputed Service Tax liability 19.46 2.49

Guarantees given by Company's Bankers on behalf of the Company to third parties 69.20 36.20

Claims against the Company not acknowledged as debts 13.46 13.46

Liability in respect of claim made by workers and contract labourers Amount not Amount not ascertainable ascertainable

8. DETAILS OF DUES TO MICRO AND SMALL ENTERPRISES AS DEFINED UNDER THE MSMED ACT, 2006

The identification of Micro, Small and Medium enterprises is based on the management's knowledge of their status. The Company has not received any intimation from suppliers regarding their status under "The Micro, Small and Medium Enterprises Development Act, 2006".

*In giving the above information, the Company has taken the view that Components and Spare Parts as referred to in Clause 4-D(a) of Part II of Schedule VI cover only such items as go directly into production and those used as spares for repairs and maintenance of Plant and Machinery.

9. EXCEPTIONAL ITEM

The development work on the Company's plot of land at Jogeshwari has been completed. The Company has secured 41% of the constructed area in return for the transfer of 59% of its rights in the said plot of land for which the Company has executed a Deed of Conveyance on 6th May, 2011. Profit arising on the said transaction amounting to Rs 7,24.01 lacs has been accounted in current year as an exceptional item.

10. PREVIOUS YEAR FIGURES

Till the year ended March 31, 2011 the Company was using pre-revised Schedule VI to the Companies Act 1956, for preparation and presentation of its financial statements. During the year ended March 31, 2012, the revised Schedule VI notified under the Companies Act 1956, has become applicable to the Company. The Company has reclassified previous year figures 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. However, it significantly impacts presentation and disclosures made in the financial statements, particularly presentation of balance sheet.


Mar 31, 2010

1 NATURE OF OPERATIONS:

Excel Industries Limited is engaged in manufacturing of Chemicals and Environmental products. Chemicals comprise of Industrial/Specialty chemicals and Pesticides Intermediates. Environmental products comprise of Soil Enricher, Bio - Pesticides and other Bio-products. The Company is also engaged in manufacturing activity on behalf of third parties.

As at 31st March, 2010 (Rs. in lacs)

2. Contingent Liabilities:

(a) Bills discounted 67.25

(b) Disputed income-tax liability 6,67.42

(c) Disputed excise duty liability 1,42.69

(d) Disputed sales-tax liability 5.14

(e) Disputed service tax liability 14.57

(f) Disputed Water Charges --

(g) Guarantees given by Companys Bankers on behalf of the Company to third parties 55.16

(h) (i) Claims against the Company not acknowledged as debts 27.46

(ii) Liability in respect of claim made by workers and contract labourers Amount not ascertainable

3. Based on the information available with the Company, there are no suppliers who are registered as micro or small enterprises under "The Micro, Small and Medium Enterprises Development Act, 2006", as at 31 March 2010.

4. The Company had entered into an agreement on 27 December 2005 to develop its plot of land at Jogeshwari. On satisfactory completion of the entire transaction, the Company will secure 41% of the constructed area in return for the transfer of balance 59% rights in the land. The profit arising on the said transaction will crystallise on the completion of the entire development and will be accounted for in the books accordingly.

5. Related Parly disclosures as required by Accounting Standard (AS) -18 "Related Party Disclosures", notified by Companies (Accounting Standards) Rules, 2006 (as amended) are given below: (a) Relationships:

1. Subsidiary Company:

Kamaljyot Investments Limited

2. Associate Company:

RomVijay Bioo Tech Private Limited

3. Joint Venture Company:

Wexsam Limited, Hong Kong

4. Enterprises over which Key Management Personnel and their relatives have significant influence:

Agrocel Industries Limited

Anshul Specialty Molecules Limited

C.C. Shroff Research Institute

C.C. Shroff Self Help Centre

Dipkanti Investments & Financing Private Limited

Excel Bio Resources Limited

Excel Crop Care Limited

Good Rasayan Limited

Hyderabad Chemical Supplies Limited

Hyderabad Chemical Products Limited

Mumukshu Finance & Services Private Limited

Parul Chemicals Limited

Pritami Investments Private Limited

Shrodip Investments Private Limited

TML Industries Limited (Formerly Transmetal Limited)

Transpek Industry Limited

Transpek-Silox Industry Limited

Transpek Industry (Europe) Limited

Utkarsh Chemicals Private Limited

6. Key Management Personnel and their Relatives:

(a) Key Management Personnel:

Shri G. Narayana Shri Ashwin C. Shroff Shri Dipesh K. Shroff Shri Atul G. Shroff Smt. Usha A. Shroff Shri S. R. Potdar Shri Ravi Ashwin Shroff

(b) Relatives:

Shri Kantisen C. Shroff Smt. Shruti Atul Shroff Kum. Vishwa Atul Shroff Smt. Chetna Praful Saraiya Shri Praful Manilal Saraiya Smt. Hiral Tushar Dayal Shri Tushar Charandas Dayal Smt. Chanda Kantisen Shroff Smt. Preeti Dipesh Shroff Smt. Anshul Amrish Bhatia Shri Hrishit Ashwin Shroff Shri Dilip G. Bhatia Shri Pradeep Ghattu

7. Excise duty on sales amounting to Rs 13,22.76 lacs (Previous Year: Rs 20,00.78 lacs) has been reduced from sales in Profit & Loss Account and excise duty on increase/decrease in stocks amounting to Rs 29.32 lacs (Previous Year: Rs 41.15 lacs) has been considered as expense in Schedule Q.

8. The Company has 33.33% interest in jointly controlled entity Wexsam Limited, Hong Kong.During the year, the Company has initiated discussion with other stakeholders for the closure of this Company. Since there were no activities in the said jointly controlled entity for the past two years, the financials are not available. Accordingly, the proportionate interest of the Company in the said jointly controlled entity has not been considered. Further, the Company has made provision for diminution in value of this investment amounting to Rs 27.26 lacs.

9. Previous years figures have been regrouped/rearranged where necessary to conform to this years classification.

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