Home  »  Company  »  Fertilisers & Ch  »  Quotes  »  Notes to Account
Enter the first few characters of Company and click 'Go'

Notes to Accounts of Fertilisers and Chemicals Travancore Ltd.

Mar 31, 2015

1. Repayable in 10 equal yearly instalments after 2 year's moratorium.Defaulted payments are 79297.20 lakh (Previous year Rs 6469.90 lakh) towards principal from the year 2008-09 and interest (@ 11.50%/12.50% p.a) Rs 25272.32 lakh (Previous year 19485.24 lakh) from 2006-07, Defaulted amounts along with instalments due during the succeeding year has been shown under other current liabilities (Refer Note No.7).

2.Secured by (a) Hypothecation of current / movable assets viz. stock of raw materials, trade receivables, stores and spares, semi-finished goods, finished goods, receivables etc. (b) First charge on 533.608 acres of land (Previous year 533.608 acres) and buildings in the States of Kerala, Tamilnadu and Karnataka (c) First charge on certain Plant and Machinery permanently attached to the above land. Rate of interest varies from 13.90 % to 15% p.a (Previous year from 13.95 % to 15 % p.a). Cash credit is repayable on demand (Previous year- On demand) and buyers credit (Previous year- three to six months).

3. Trade payables include Rs 43.68 lakh (Previous year Rs 75.72 lakh) payable to Small Scale Industrial Undertakings to the extent such parties have been identified from the available documents/ information. Dues owed by the Company to Small Scale Industrial Undertakings outstanding for more than 30 days is Rs 13.23 lakh (Previous year 74.32 lakh)

4. The amount unpaid towards vendors under the Micro,Small and Medium Enterprises Development Act 2006 is Rs 62.56 lakh (Previous year 776.98 lakh) and interest thereon works out to 71.36 lakh (Previous year 70.57 lakh)

5. Financial reporting on interest in Joint Ventures

In the year 2008-09, a joint venture with Rashtriya Chemicals and Fertilisers Ltd.(RCF) for manufacture of Rapid Building materials from Gypsum has been formed. The Company has invested Rs 3287 lakh (Previous year Rs 3287 lakh) as its share in the Joint venture, including ' Nil (Previous Year Rs 1518 lakh) towards share application money pending allotment.Other details are:-

6. Deferred tax assets (net)

The Company has deferred tax asset of Rs143111 lakh (Previous year Rs 105036 lakh) as on 31.03.2015 because of unabsorbed depredation and accumulated losses. The deferred tax liability as on 31.03.2015 is 15874 lakh (Previous year Rs 13764 lakh). Since there is net deferred tax asset as on 31.03,2015, as a matter of prudence the deferred tax asset is not considered in the Accounts. The net impact (favourable) in taxon account of this comes to Rs 39316 lakh.(Previous year Rs 28203 lakh)

7. Capital advance to vendors include amount paid for items supplied but rejected by the Company pending settlement f 7.44 lakh (Previous year Rs 12.51 lakh)

8. Advance to employees include Rs 14.43 lakh (Previous year Rs 14.54 lakh) towards festival advance paid during 1996-97, and is being recovered at the time of seperation from company's service.

9. Finished Goods includes 37.51 lakh MT (Previous year 37.74 lakh MT) of Gypsum (out of 38.43 lakh MT stock on hand as on 31.03.2015) (Previous year 38.83 lakh MT) amounting to Rs 13917.98 lakh (Previous year Rs1524.31 lakh) valued at net realisable value(inclusive of Excise Duty).

10. The company provides for redundancy / obsolescence keeping in view the estimated realisable value, in respect of a)stores and spares lying in stores for more than 10 years b) stores and spares identified as surplus having an age of 5-10 years and c) all damaged stores and spares. Current year Rs 260.51 Lakh (Previous year Rs (426.09) lakh)

11. The disclosure of provisions movement as required under Accounting Standard 29 "Provisions , Contingent Liabilities and Contingent Assets" Provision towards obsolescence and storage losses (including provision towards Retired spares )

12. Stores & Spares in transit includes Stores & Spares at site pending inspection Rs 118.20 lakh (Previous year Rs 736.04 lakh)

13. Details of Work-in-proqess

14. Trade receivables includes Rs 124.16 lakh (Previous year: Rs 117.62 lakhs) towards amount receivable from Companies where the directors of the Company are also directors.

15. Balance with banks include Rs 0.24 lakh (Previous Year Rs 8.10 lakh) being the balance of amount received from clients for execution of jobs on Total Responsibility basis and Rs 2777,97 lakh(Previous year Rs 2500.00 lakh) towards work on Deposit basis, lying in a specified account to meet the matching liabilities under Current Liabilities,

16. Other loans and advances include unutilised certificates worth 76.07 lakh (Previous year 713.49 lakh) under Duty Entitlement Passbook Scheme (DEPB) and 7Nil (Previous year 7Nil) receivable under Duty Drawback scheme, effective from 01.10.2011, on export of Caprolactam.

17. Deposits includes 778.59 lakh (Previous Year 767.92 lakh) towards the amount paid against disputed demands pending appeal and 7462.34 lakh (Previous year 7462.34 lakh) towards security deposit with Kerala State Electricity Board,

18. Advance to vendors includes an amount of 71353.19 lakh (Previous year Rs 1353.19 lakh) including interest considered as recoverable on the basis of a bank guarantee invoked by the Company but stayed till the completion of arbitration. The Arbitration Award was passed during the year 2013-14, as per which the company is entitled to adjust an amount of Rs 2798.29 lakh towards this advance and interest, from the dues claimed by the contractor. The Company has gone on appeal against the award before the Hon' District Court which has since stayed the award. Accordingly the Company demanded the bank to send the proceeds of encashment of bank guarantee along with interest. The bank rejected the claim and consequently the Company filed a suit against the bank before the Hon. High court of Mumbai for realization of amount, which is pending. However an amount of Rs 1353.19 lakh only has been retained pending disposal of the case. (Also Refer Note no 18.7,21.1 and 29(1) (a)(vi))

19. Advance to vendors include amount paid for materials supplied but rejected by the Company pending settlement 75.56 lakh (Previous year Rs 22.35lakh)

20. Advance to employees include Rs 1.31 lakh (Previous year Rs 1.62 lakh) towards a portion of festival advance paid during 1996-97 and recoverable at the time of seperation from company's service during the year 2015-16.

21. Allowance for bad and doubtful loans and advances include 76073 lakh (Previous year 74829.63 lakh) towards interest accrued on mobilisation advance given to a private company. Pending litigation, equivalent provision has been made towards interest beyond the amount considered recoverable. (Also Refer Note no 18.3,21.1 and 29(1) (a)(vi))

22. During the year 2009-10 company has decided to scrap Ammonia & Urea plants at Cochin Division. These plants have been stated at estimated realisable value of 73245.03 lakh (Previous year 73245.03 lakh ) and included under Retired Plants held for sale.

23. Subsidy includes Rs Nil (Previous Year Rs 11656.72 lakh") on account of additional compensation for use of Naphtha which has since been discontinued with effect from 05.10.2013 by Department of Fertilisers.No credit has been taken for similar additional compensation towards use of higher cost Liquified Natural Gas (LNG) in lieu of Naphtha pending approval from Govt of India.

24. In the case of work being carried out by FACT Enginering and Design Organisation (FEDO), for National Institute of Technology (NIT), Nagaland, as an executing agency, on a cost plus basis, as a deposit work, FEDO is eligible for certain percentage of fees of total project cost. As per technical evaluation , 34.53% of work related to consultancy services by FEDO to NIT, has been completed as on 31.3.2015 and pro- rata credit of Rs 446.53 lakh has been taken, after providing for Rs 20.25 lakh towards unearned income. The value of construction work done is taken as 11510.54 lakh, to the extent of bills certified and paid during the Financial Year 2014-15 and equivalent amount has been considered for direct charges on contract.

25. Interest of Rs 1243.37 lakh (Previous year Rs 1035.19 lakh) for the year 2014-15 receivable from the contractor on the interest bearing mobilisation advance still retained by the party, has been considered in the accounts. However a corresponding provision for doubtful interest has been made during the current year. (Also Refer Note No. 18.3,18.7 and 29 (1) (a) (vi))

26. The physical verification of raw materials and finished products has been carried out on or around 31st March 2015. The differences overbook figures in the case of raw material has been adjusted in consumption ( Excess(-) / Shortage). Current year Rs -396.49 lakh (Previous yeart-446.10 lakh).

27. Related pariy disclosure (Accounting Standard 18)

List of related party

Key Management Personnel Sri Jaiveer Srivastava, Chairman and Managing Director. Sri P.Muthusamy, Director (Finance) Sri V.K.Anil, Director (Technical) Sri V. Subramanian, Director (Marketing) Transactions with related parties:

Remuneration to key management personnel: Rs 91.55 lakh (Previous year Rs 80.05 lakh )

28. The Company as on date is not liable to provide for the arrears of salaries and wages (net of interim relief paid) for the period 01.01,1997 to 30.06.2001 and perquisites and other allowances for the period 20.10.2000 to 30.06.2001, in respect of its managerial and unionised employees, in view of the conditions in the directives of the Government of India while implementing the wage revision. Accordingly no provision has been made in the accounts.

29. General Description of Defined Benefit Plan

A. Gratuity and Leave Encashment

The company operates gratuity plan where in every employee is entitled to the benefit equivalent to fifteen days salary last drawn for each completed year of service.The same is payable on death , separation from service or retirement , whichever is earlier. The benefit vests after five years of continuous service.The company has been accounting for provision on account of leave encashment on retirement based on actuarial valuation carried out as atthe balance sheet date.

B. Provident Fund

The Provident Fund contributions are made to Trusts administered by the company. The interest rate payable to the members of the Trust shall not be lower than statutory rate of interest declared by the Central Government under the Employees Provident Funds and Miscellaneous ProvisionsAct 1952.

During the year an amount of Rs 1907.99 lakh (Previous Year Rs 1897.27 lakh) has been charged to Statement of Profit & Loss towards contribution by the Company. In terms of the revised AS 15 issued by the Institute of Chartered Accountants of India, the Provident Fund Trust set up by the company is treated as Defined Benefit Plan since the company has to meet the shortfall in the fund assets, if any.

C. General Description of Defined Contribution Plan

Contributory Superannuation Scheme-The scheme is aimed to provide superannuation benefits to the employees. Every year company contributes Rs 100 to the fund.

30. Physical verification of stores and spares was carried out at all divisions as per the procedure laid down in the Stores Management Manual and the differences( Excess(-)/Shortage) over book figures has been adjusted in the accounts. Current year Rs 9.86 lakh (Previous year Rs 4.78 lakh)

31. Miscellaneous Expenses includes Directors travel amounting to Rs 31.63 lakh (Previous year Rs 41.90 lakh) and Directors sitting fee Rs Nil (Previous year Rs Nil).

32. Research and Development Expenditure of Rs 94.01 lakh (Previous Year Rs 71.65 lakh) includes expenditure towards salary Rs 92.33 lakh (Previous year 370.49 lakh) and depreciation Rs 0.98 lakh (Previous year Rs 0.49 lakh).

33. Securities and Exchange Board of India (SEBI) vide letter No.CFD/FAC/SKS/OW/11675/2015 dated 27.4.2015 advised the company to restate the financial results for the Financial year 2012-13 and 2013-14 (if the same qualification is repeated in 2013-14 also) and the effect of these restatement adjustments may be carried out in the annual accounts of the Financial year 2014-15 as a prior period item. The same qualification is, however, not repeated in the FY 2013-14 for similar treatment of valuation of gypsum. Without prejudice to the right of the company to approach the appropriate forum against the advice of SEBI, the company has given effect to the restatement adjustment on valuation of Gypsum during the financial year 2012-13 and 2013-14, as a prior period item in financial statements of 2014-15.However, there is no impact on the profit / loss due to such adjustment in the financial year 2014-15.

34. The Corporate Social repsonsibility (CSR) provisions as per sec 135(1) of the Companies Act, 2013 is applicable to the Company. But due to the losses suffered during the preceding Financial Years, the Company is not liable to spend any amount mandatorily on CSR.

35. Rate of additional compensation for use of Naphtha has been provisionally revised upwards with effect from 01.04.2012 during the Financial Year 2013-14 by Department of Fertilisers.Impact on the income for the Financial Year 2012-13 is shown above as exceptional item.

Due to uneconomic price of one of the product namely caprolactam in the market, the company did not produce caprolactam during the year. However certain segments of the petrochemical plant has been operated for production of Ammonium Sulphate through the direct neutralization method. The caprolactam plant is maintained and preserved for commencement of production when required. Company has redeployed a section of the employees of the plant to other areas wherever required. The fixed cost pertaining to the portion which has remained unproductive throughout the year charged to revenue during the year is Rs 4136.82 lakh (Previous year Rs 4974.66 lakh.)

During the year, the captive ammonia plant was not operated up to 17.2.2015 due to maintenance of ammonia plant and higher LNG prices.The unabsorbed costs due to non-operation of ammonia plant is Rs 5379.65 lakh (Previous year ' Nil)

36. Contingent Liabilities and As at 31.03.2015 As at 31.03.2014 Commitments (to the extent not povided for):

(1) Contingent Liabilities:

(a) Claims against the company not acknowledged as debts in respect of:

i) Central Excise Act, 1944 * 7541.33 7156.24

i) Finance Act, 1994 (Service Tax) 334.25 296.79

H) Sales Tax / Entry tax 108.17 522.66

iv) Income Tax Act, 1961 151.48 151.48

v) ESI Act 127.83 127.83

vi) Suppliers and contractors # 19279.59 18444.26

vii) Others 1333.34 1098.87

* Excise duty demand of Rs 36.92 lakh on purchase of Raw material, pending appeal, has not been considered since the liability rests with supplier as per order terms.(PreviousYear Rs 32.72 lakh).

# The contract for the barge transportation of Ammonia awarded to a private company has been cancelled void ab initio during 2004-05 by the Company. The Contractor claimed Rs 178489.75 lakh including interest till 31.03.2013 before the arbitrator .The arbitrator has passed an award during the year 2013-14 in favour of the contractor for Rs 17308.04 lakh including interest as on 31.12.2013.

As per the award, the mobilisation advance paid by the Company to the contractor along with interest of Rs 2798.29 lakh is to be adjusted against the said award. The Company has not accepted the award on legal and factual grounds and has challenged the award before the Hon' District Court which has since stayed the award. Accordingly, the award amount along with interest up to 31.03.2015, amounting to Rs 18576.50 lakh with out considering the adjustment of mobilsation advance and interest allowed under the arbitral award is not considered as a liability and included under Contingent Liability.(Refer Note No 18.3,18.7 and 21.1).

(b) Guarantees given to various clients/ statutory authorities for performance of contracts/ obligations are not included, as the money value thereof cannot be ascertained.

In addition company has provided Corporate Guarantee,

(i) for the term loan of M/s FACT-RCF Building Products Ltd. However the share of term loan

exposure as on 31.03.2015 is Rs 4024.99 lakh (50% of total loan exposure of Rs 8049.98 lakh). 3546.50 3546.50

(ii) To M/s.Cochin Shipyard Ltd to release balance payments against a fabrication work done

by the Company 72.03 -

(c) The contingent liability in respect of bills discounted with banks fully covered by buyers' letter of credit -

37. The Company has a system of obtaining confirmation of balances from third parties. Some of the parties have confirmed the balances.

38. As the accumulated loss has exceeded the networth as on 31.3.2013,the Company has become a sick industrial company with in the meaning of section 3(1) (o) of Sick Industrial Companies (Special Provisions) Act ,1985 as per duly audited accounts for Financial Year 2012-13 as adopted in the Annual General Meeting on 27.12.2013 .Accordingly company has submitted a formal reference under section 15 of Sick Industrial Companies (Special Provisions) Act ,1985 to Board for Industrial and Financial Reconstruction during February 2014.The financial restructuring proposal submitted by company had already been recommended by Board for Reconstruction of Public Sector Enterprises on 20.12.2013 and is awaiting the final approval of Gorvernment of India. Considering the likely approval of the financial restructuring proposal, company does not forsee impairment of its operations as a going concern and hence the accounts are prepared on going concern basis.

39. Figures for the previous year have been regrouped and re-classified wherever necessary to correspond with the current year classification/ disclosure.


Mar 31, 2013

1.1 Other loans and advances include unutilised certificates worth Rs. 13.49 lakh (Previous year Rs. 328.48 lakh) under Duty Entitlement Passbook Scheme (DEPB) and Rs.12.98 lakh (Previous year Rs.18.12 lakh) receivable under Duty Drawback scheme , effective from 01.10.2011, on export of Caprolactam.

1.2 Deposits includes Rs. 67.92 lakh (Previous Year Rs.70.38 lakh) towards the amount paid against disputed demands pending appeal and Rs.545.07 lakh (Previous year Rs. 544.51 lakh) towards security deposit with Kerala State Electricity Board.

1.3 Advance to vendors/dues from vendors include advances paid covered by Bank Guarantees and interest accrued upto the date of reiterating the claim under bank guarantee.Current year Rs. 1353.19 lakh (Previous year Rs.4285.76 lakh).The bank guarantee was invoked and the court has stayed the encashment till the arbitration award.

1.4 Advance to vendors include amount paid for materials supplied but rejected by the Company pending settlement Rs. 27.05 lakh (Previous year Rs.10.54 lakh )

1.5 Advance to employees include Rs. 1.79 lakh (Previous year Rs. 1.52 lakh) towards a portion of festival advance paid during 1996 97 and recoverable at the time of seperation from company''s service during the year 2013 14.

2.1 During the year 2009 10 company has decided to scrap Ammonia & Urea plants at Cochin Division. These plants have been stated at estimated realisable value of Rs. 3245.03 lakh (Previous year Rs. 3245.03 lakh) and included under Retired Plants held for sale.

3.1 The physical verification of raw materials and finished products has been carried out on or around 31st March 2013. The differences over book figures in the case of raw material has been adjusted in consumption ( Excess( ) / Shortage). Current year Rs.923.26 lakh (Previous year Rs.22.84 lakh ).

The whole time Directors have been allowed the use of company car and for private journey upto a ceiling of 9000 kms. per year , o n payment as prescribed by the Government.

Gratuity payable to the Directors has not been disclosed as the contribution payable has been provided in the accounts and separate figures are not ascertainable.

3.2 Related party disclosure on Joint Ventures (Accounting Standard 18) List of related party

Key Management Personnel

Sri Sham Lal Goyal IAS , Chairman and Managing Director.

Sri V.G.Sankaranarayanan, Director (Technical) (Upto 30.04.2011)

Sri P.Muthusamy, Director (Finance)

Sri V.K.Anil, Director (Technical)

Sri P.K.Chandrasekharan, Director (Marketing) Transactions with related parties: Remuneration to key management personnel : Rs. 55.49 lakh (Previous year Rs.54.01 lakh )

3.3 The Company as on date is not liable to provide for the arrears of salaries and wages (net of interim relief paid) for the period 01.01.1997 to 30.06.2001 and perquisites and other allowances for the period 20.10.2000 to 30.06.2001, in respect of its managerial and unionised employees, in view of the conditions in the directives of the Government of India while implementing the wage revision. Accordingly no provision has been made in the accounts.

4 The Company has a system of obtaining confirmation of balances from third parties. Some of the parties have confirmed the balances.

5 Company continues to fall under section 23 of Sick Industrial Companies (Special Provisions) Act, 1985. A report under section 23 of SICA was made in February 2004 to the Board for Industrial and Financial Reconstruction.

6 Earnings Per Share (Accounting Standard 20)

i) Earnings Rs. 35396.18 lakh [Previous year Rs.1979.81 lakh (profit)]

ii) Number of Shares Issued, Subscribed and Paid up 647071974 (Previous year 647071974)

iii) Earning Per Share Rs. 5.47 ( Previous year Rs.0.31 )

(Basic and Diluted)

7 Figures for the previous year have been regrouped and recast wherever necessary to conform with the current year classification.


Mar 31, 2012

1.1 Repayable in 10 equal yearly instalments after 2 year's moratorium.Defaulted payment of Rs. 4250.00 lakh (Previous year Rs. 2930.00 lakh) towards principal from the year 2007-08 and interest (@ 11.50% / 12.50% P.A.) Rs. 7272.89 lakh (Previous year Rs. 4650.00 lakh) from 2006-07. Defaulted amounts along with instalments due during the succeeding year has been shown under Other current liabilities.

1.2 Repayable on maturity period of 1/2/3 years. No default in payment of principal and interest(Previous year Rs. Nil). Rate of interest varies from 9% to 11% P.A. All outstanding amounts as on 31.03.2012 are due during the year 2012-13 and has been shown under Other current liabilities

1.3 Secured by (a) Hypothecation of current / movable assets viz. stock of raw materials, trade receivables, stores and spares, semi- finished goods, finished goods receivables etc. (b) First charge on 533.608 acres of land (Previous year 533.608 acres) and buildings in the States of Kerala, Tamilnadu and Karnataka (c) First charge on certain Plant and Machinery in Udyogamandal and Petrochemical Divisions. Rate of interest varies from 12.00% to 14.90 % P.A. (Previous year- from 12% to 13.75% P.A.). Defaulted amount during the year Rs. Nil ( Previous year Rs. Nil ) . Repayment period of Cash credit is one year ( Previous year - one year )and in respect of term loan is 3 months ( Previous year 16 quarterly instalments , last instalment was due on 07.04.2011).

1.4 Trade payables include Rs.16.37 lakh (Previous year Rs. 4.20 lakh)payable to Small Scale Industrial Undertakings to the extent such parties have been identified from the available documents/ information. Dues owed by the Company to Small Scale Industrial Undertakings exceeding Rs. 1 lakh which is outstanding for more than 30 days is Rs. Nil. (Previous year-Nil).

1.5 The company has not received information from vendors regarding their status under the Micro, Small and Medium Enterprises Development Act 2006, and hence the disclosure relating to the amount unpaid together with interest paid/payable as at the year end has not been given.

1.6 Advance to vendors include advances paid covered by Bank Guarantees. Current year Rs. 22.37 lakh (Previous year Rs. Nil).

1.7 Advance to vendors include amont paid for items supplied but rejected by the Company pending settlement is Rs. 11.53 lakh (Previous year Rs.7.69 lakh).

1.8 Advance to employees include Rs. 17.99 lakh (Previous year Rs. 19.51 lakh) towards festival advance paid during 1996-97, and is being recovered at the time of seperation from company's service.

1.9 During the year 2010-11 the Government of India has decided to buyback the "Fertiliser Companies Government of India special bonds " (Fertiliser bonds- issued by it in an earlier year in lieu of subsidy dues) in two equal installments during 2010-11 and 2011-12 through Reserve Bank of India. Accordingly, the company sold the remaining 50% of the Fertilizer Bonds on 26-07-2011 for an amount of Rs. 11283.83 lakh. As per Government Notification, the company had also accounted an amount of Rs. 1848.38 lakh towards 50% of the loss due to the Sale of Fertilizer Bonds, as receivable from the Government. An amount of Rs. 1558.30 lakh has been received during 2011-12 against amount receivable of Rs. 1848.38 lakh and balance of Rs. 290.08 lakh is expected to be received .

1.10 Finished Goods includes 45.04 lakh MT (Previous year 37.00 lakh MT ) of Gypsum (out of 45.96 lakh MT stock on hand as on 31.03.2012 - Previous year 49.98 lakh MT) amounting to Rs. 18667.26 lakh (Previous year Rs.20353.70 lakh ) valued at net realisable value(inclusive of Excise Duty).

1.11 The company provides for redundancy / obsolescence keeping in view the estimated realisable value, in respect of a)stores and spares lying in stores for more than 10 years b) stores and spares identified as surplus having an age of 5-10 years and c) all damaged stores and spares. However no provision for redundancy / obsolescence is considered in respect of insurance spares. Current year Rs. 227.64 lakh (Previous year Rs. 235.43 lakh)

1.12 Stores & Spares in transit includes Stores & Spares at site pending inspection Rs. 411.63 lakh (Previous year Rs. 192.64 lakh)

1.13 Bills discounted amounting to Rs. 7343.18 lakh (Previous year Rs. 6297.09 lakh) is deducted from Other Trade receivables-Unsecured , considered good.

1.14 Balance with banks include Rs. 49.83 lakh (Previous Year Rs. 147.63 lakh) being the balance of amount received from clients for execution of jobs on Total Responsibility basis lying in a specified account to meet the matching liabilities under Current Liabilities.

1.15 Other loans and advances include unutilised certificates worth Rs. 328.48 lakh (Previous year Rs. 749.99 lakh) under Duty Entitlement Passbook Scheme (DEPB) and Rs. 18.12 lakh (Previous year Rs. Nil) receivable under Duty Drawback scheme, effective from 01.10.2011, on export of Caprolactam.

1.16 Deposits includes Rs. 70.38 lakh (Previous Year Rs. 70.15 lakh) towards the amount paid against disputed demands pending appeal and Rs. 544.51 lakh (Previous year Rs. 544.50 lakh) towards security deposit with Kerala State Electricity Board.

1.17 Advance to vendors/dues from vendors include advances paid covered by Bank Guarantees and interest accrued.Current year Rs. 4285.76 lakh (Previous year Rs. 3568.19 lakh).

1.18 Advance to vendors include amont paid for materials supplied but rejected by the Company pending settlement is Rs. 10.54 lakh (Previous year Rs. 12.81 lakh).

1.19 Advance to employees include Rs. 1.52 lakh (Previous year Rs. 1.20 lakh) towards festival advance paid during 1996-97, and is being recovered at the time of seperation from company's service in the succeeding 12 month period.

1.20 The disclosure of provisions movement as required under Accounting Standard 29 "Provisions, Contingent Liabilities and Contingent Assets"

Allowance for bad & doubtful Loans and advances

Provision at the beginning of the year 152.42 128.38

Provisions made during the year - 24.04

Written off during the year - 0.00

Released during the year 16.32 0.00

Provision at the end of the year 136.10 152.42

1.21 The physical verification of raw materials and finished products has been carried out on or around 31st March 2012. The differences over book figures in the case of raw material has been adjusted in consumption (Excess/ Shortage(-) ). Current year Rs. 22.84 lakh (Previous year Rs. 161.00 lakh )

1.22 Related party disclosure on Joint Ventures (Accounting Standard 18) List of related party

Key Management Personnel

Sri Sham Lal Goyal, IAS, Chairman and Managing Director.

Sri V.G.Sankaranarayanan, Director (Technical)-(Upto 30.04.2011)

Sri P.Muthusamy, Director (Finance)

Sri V.K.Anil, Director (Technical)-(From 28.06.2011 onwards)

Sri P.K.Chandrasekharan, Director (Marketing)-(From 30.11.2011 onwards)

Transactions with related parties:

Remuneration to key management personnel : Rs. 54.01 lakh (Previous year Rs. 61.84 lakh )

1.23 The Company as on date is not liable to provide for the arrears of salaries and wages (net of interim relief paid) for the period 01.01.1997 to 30.06.2001 and perquisites and other allowances for the period 20.10.2000 to 30.06.2001, in respect of its managerial and unionised employees, in view of the conditions in the directives of the Government of India while implementing the wage revision. Accordingly no provision has been made in the accounts.

1.24 Physical verification of stores and spares was carried out at all divisions as per the procedures laid down in the Stores Management Manual and the differences( Excess/ Shortage(-) ) over book figures has been adjusted in the accounts. Current year Rs. 16.55 lakh (Previous year Rs. 21.64 lakh)

1.25 Miscellaneous Expenses includes Directors travel amounting to Rs. 26.37 lakh (Previous year Rs. 16.92 lakh) and Directors sitting fee Rs. 2.70 lakh (Previous year Rs. 3.80 lakh)

1.26 Research and Development Expenditure includes depreciation of Rs. 0.69 lakh( Previous year Rs. 0.79 lakh) on Research and Development Assets.

Rs. in Lakh 31-03-2012 31-03-2011

2 Contingent Liabilities not provided for :

(i) Claims against the company pending before various legal/ statutory authorities and not acknowledged as debts in respect of:

a) Excise Duty 72.56 63.79

b) Service Tax 75.96 51.47

c) Sales Tax / Entry tax 472.20 446.97 d) Customs Duty 40.04 40.04

e) Income Tax 151.48 599.34

f) ESI 221.27 218.16

g) Suppliers and contractors # 178360.50 179569.57

h) Others 511.94 375.82

# The contract for the barge transportation of Ammonia awarded to a private company has been cancelled void ab initio during 2004-05 by the Company. The Contractor's claim for shortfall charges (for the period 01.04.2003 to 22.04.2008) and damages for Rs. 178101.42 lakh (Previous year Rs. 177713.07 lakh )which is pending before the Arbitrator has not been provided in the accounts and is included under Contingent liabilities based on the assessment of the management.

(ii) Excise duty demand of Rs. 28.52 lakh on purchase of Raw material , pending appeal, has not been considered since the liability rests with supplier as per order terms.(PreviousYear Rs. 26.42 lakh).

(iii) Guarantees given to various clients statutory authorities for performance of contracts obligations are not included, as the money value thereof cannot be ascertained. In addition company has provided Corporate Guarantee for the term loan of M/s FACT-RCF Building Products Ltd. However the share of term loan exposure as on 31.03.2012 is Rs.732.40 lakh (50% of total loan exposure of Rs.1464.81 lakh). 1750.00 1750.00

(iv) The contingent liability in respect of bills discounted with banks is fully covered by buyers' letter of credit 7343.18 6297.09

3 During the year 2010-11 company has charged interest amounting to Rs. 821.15 lakh as prior year adjustment under exceptional items in the Profit and loss statement.

4 The Company has a system of obtaining confirmation of balances from third parties. Some of the parties have confirmed the balances.

5 Company continues to fall under section 23 of Sick Industrial Companies (Special Provisions) Act, 1985. A report under section 23 of SICA was made in February 2004 to the Board for Industrial and Financial Reconstruction.

6 Earnings Per Share (Accounting Standard - 20)

i) Earnings Rs. 1979.81 Lakh [ Previous year Rs. 4932.67 lakh (loss) ]

ii) Number of Shares -Issued, Subscribed and Paid up -647071974 (Previous year 647071974)

iii) Earning Per Share Rs. 0.31 ( Previous year Rs. -0.76 ) (Basic and Diluted)

7 Figures for the previous year have been regrouped and recast wherever necessary to conform with the current year classification.


Mar 31, 2011

Rs. in Lakh

31.03.2011 31.03.2010

1 Contingent Liabilities not provided for :

(i) Claims against the company pending before various legal / statutory authorities and not acknowledged as debts in respect of:

a) Excise Duty 63.79 60.85

b) Service Tax 51.47 43.48

c) Sales Tax / Entry tax 446.97 421.74

d) Customs Duty 40.04 40.04

e) Income Tax 599.34 599.34

f) ESI 218.16 215.42

g) Suppliers and contractors 179569.57 178979.05

h) Others 375.82 398.15

(ii) Excise duty demand of Rs. 26.42 lakh on purchase of Raw material, pending appeal, has not been considered since the liability rests with supplier as per order terms (Previous Year Rs. 24.85 lakh).

(iii) Guarantees given to various Clients/ Statutory Authorities for performance of contracts /obligations are not included, as the money value thereof cannot be ascertained. In addition company has provided Corporate Guarantee for the term loan of M/s FACT-RCF Building Product Ltd. 1750.00 1750.00

2 Fixed Assets include:

a) Out of the total 2150.69 (Previous year 2150.69 acres ) acres of land held by the Company,158.82 acres (Previous year 158.82 acres ) are held under leasehold right. Out of this, lease agreement in respect of 15.47 acres (Previous year 15.47 acres ) of leasehold land belonging to Cochin Port Trust is under renewal.

b) Land for Rs. 504.17 lakh (Previous year Rs. 496.52 lakh) in respect of which the title deeds are yet to be registered/ received. Certain land owners have since preferred extra compensation claims which are pending before Courts. The liability on this account is not ascertainable. Interest and legal expenses incurred on land acquisition cases are charged to Profit and Loss account of the year.

d) As per the Joint Venture agreement with M/s Rashtriya Chemicals and Fertilisers Limited (RCF), the company, during 2008-09, has made available 11 acres of land at Cochin Division on lease basis to M/s. FACT-RCF Building Products Limited for a period of 20 years on an upfront premium of Rs. 1000 lakh and an yearly rent of Rs. 10 per year.

e) Underpass/ Overbridge on the newly constructed container terminal approach road on the land acquired by the National Highway Authority of India is meant for exclusive FACT use forming part of railway siding/approach road for movement of FACT products. Pending construction of railway siding / approach road, the expenditure of Rs. 335.08 lakh incurred on under pass/overbridge has been included in the capital work in progress, since it is having future economic benefits.

3 Cost of Railway siding includes Rs. 85.43 lakh (Previous year Rs. 85.43 lakh) ,written down value Rs. 4.27 lakh (Previous year Rs. 4.27 lakh), held jointly with M/s.Bharat Petroleum Corporation Limited (Kochi Refinery).

4 The cost of Licence fee and implementation of SAP ERP system software has been capitalised during the year 2009-10 as Intangible Asset and depreciated proportionately over a period of five years from the date of commissioning. Addition during the year is Rs. 15.39 lakh(Previous Year Rs. 1007.10 lakh) .

5 During the year 2009-10 company has decided to scrap Ammonia & Urea plants at Cochin Division. These plants have been restated at estimated realisable value of Rs. 3245.03 lakh (Previous year Rs. 2740.79 lakh ) under Retired Plant and Machinery. Similarly the value of spares on these plants have also been restated at realisable value of Rs. 104.97 lakh ( Previous year Rs. 88.66 lakh ) as against the orginal cost of Rs. 453.50 lakh (Previous year Rs. 453.50 lakh).

6 During the year the Government of India has decided to buyback the remaining "Fertiliser Companies Government of India special bonds " (Fertiliser bonds- issued by it in an earlier year in lieu of subsidy dues ) in two equal installments during 2010-11 and 2011-12 through Reserve Bank of India and also decided to share at least 50% of the loss on such sale of Fertiliser bonds. Accordingly the company has sold 50% of the Fertiliser bonds of each coupon rates held (Aggregate face value of Rs.13288.00 lakh) on 31st March 2011 and accounted for a loss of Rs. 846.30 lakh after recognising 50% compensation towards loss receivable from the Government of India. In respect of unsold bonds of face value of Rs. 13288.00 lakh the company has valued at fair value of Rs. 12285.91 lakh ,being the sale value realised on sale of said bonds on 26th July 2011 plus Rs. 1002.08 lakh being 50% compensation of the loss as per Government notification. The company has accounted for the loss of Rs.1002.09 lakh on this account.

7 During the year the Company received certificates worth for Rs. 749.99 lakh(Previous year Rs. 402.84 lakh) under Duty Entitlement Passbook Scheme (DEPB), on export of Caprolactam, to be used for duty free import of Rawmaterials,Stores and Spares etc. In respect of DEPB license received, Customs Duty entitlement amount is accounted under " Balance with Customs , Port Trust etc.-in Loans and Advances " and credited to " Other Income" . The Customs Duty due on imports during the year has been adjusted against the DEPB value and accounted with cost of respective material. The DEPB entitlement unutilized as on 31.03.2011 is Rs.749.99 lakh(Previous year Rs. 399.92 lakh).

8 (i) During the year 2008-09 company had paid Rs. 557.50 lakh towards instalments due on loans received from the Government of India .However the Government of India had adjusted this amount against interest due. Taking cognizance of the Government decision , the company has also adjusted the same during the year towards interest. Consequently the additional interest on the principal amount Rs. 184.33 lakh has been charged to Profit and Loss account during the year.

(ii) During the year company has provided Rs. 1303.95 lakh as penal interest on loans received from the Government of India. Of this Rs. 601.02 lakh has been provided as current year interest and Rs. 702.93 lakh has been provided as prior year adjustments.

9 (a) Loans and Advances unsecured considered good includes Rs. 70.15 lakh being amount paid against demands disputed pending appeals (Previous Year Rs. 72.98 lakh).

(b) Provision has been made under 'Other liabilities' with respect to Rs.5.12 lakh , being the amount deposited in court as per court order in OP 497/92 (Paul Mathew & Sons Vs FACT).

10 a) The contract for the barge transportation of Ammonia awarded to a private company has been cancelled void ab initio during 2004-05 by the Company. The Contractor's claim for shortfall charges (for the period 01.04.2003 to 22.04.2008) and damages for Rs. 177713.07 lakh (Previous year Rs. 177324.72 lakh )which is pending before the Arbitrator has not been provided in the accounts and is included under Contingent liabilities based on the assessment of the management. b) Interest of Rs. 597.42 lakh for 2010-11 receivable from the contractor on the interest bearing mobilisation advance still retained by the party, has been considered in the accounts (Previous year Rs. 497.40 lakh).

11 Sundry debtors shown as Considered good and Unsecured include Rs. Nil covered by Bank Guarantees (Previous Year Rs. 0.11 lakh)

12 Cash and Bank balances include Rs. 147.63 lakh (Previous Year Rs. 147.64 lakh) being the balance of amount received from clients for execution of jobs on Total Responsibility basis lying in a specified account to meet the matching liabilities under Current Liabilities.

g) Income under services for own units reckoned by the Engineering and Consultancy Division (FEDO) and the Fabrication Division (FEW) is accounted by respective units under revenue expenditure Rs. 558.34 lakh (Previous year Rs. 221.37 lakh ), and capital Rs. 451.59 lakh (Previous year Rs. 203.09 lakh ).

h) Excise duty on own division jobs is ascertained based on Cost Accounting Standard 4.

13 a) The Company as on date is not liable to provide for the arrears of salaries and wages (net of interim relief paid) for the period 01.01.1997 to 30.06.2001 and perquisites and other allowances for the period 20.10.2000 to 30.06.2001, in respect of its managerial and unionised employees, in view of the conditions in the directives of the Government of India while implementing the wage revision. Accordingly no provision has been made in the accounts.

The whole time Directors have been allowed the use of company car and for private journey upto a ceiling of 9000 kms. per year, on payment as prescribed by the Government.

Gratuity payable to the Directors has not been disclosed as the contribution payable has been provided in the accounts and separate figures are not ascertainable.

14 a. Sundry creditors include Rs. 4.20 lakh payable to Small Scale Industrial Undertakings to the extent such parties have been identified from the available documents/ information (Previous year Rs. 1.55 lakh). Dues owed by the Company to Small Scale Industrial Undertakings exceeding Rs. 1 lakh which is outstanding for more than 30 days is Rs. Nil (Previous year-Nil).

b. The company has not received information from vendors regarding their status under the Micro, Small and Medium Enterprises Development Act 2006 and hence the disclosure relating to unpaid as at the year end together with interest paid/payable has not been given.

15 The Company has deferred tax asset of Rs. 85658 lakh (Previous year Rs. 91598 lakh) as on 31.03.2011 because of unabsorbed depreciation and accumulated losses. The deferred tax liability as on 31.03.11 is Rs. 23949 lakh (Previous year Rs. 25782 lakh). Since there is net deferred tax asset as on 31.03.2011, as matter of prudence the deferred tax asset is not considered in the Accounts. The net impact (favourable) in tax on account of this comes to Rs. 20500 lakh(Previous year Rs. 22371 lakh).

16 The Company has a system of obtaining confirmation of balances from third parties. Some of the parties have confirmed the balances.

17 Company continues to fall under section 23 of Sick Industrial Companies (Special Provisions) Act, 1985. A report under section 23 of SICA was made in February 2004 to the Board for Industrial and Financial Reconstruction.

Defined benefit plan

Gratuity fund is managed under Group Gratuity (Cash Accumulation) policy by M/s Life Insurance Corporation of India. The present value of obligation is determined on the basis of acturial valuation using projected unit credit method. The present value of obligations for leave encashment is recognised in the same manner.

18 RELATED PARTY DISCLOSURES (ACCOUNTING STANDARD 18)

List of related Parties

Joint Ventures

FACT-RCF Building Products Ltd.

Key Management Personnel

Sri A Asokan, Chairman and Managing Director (Upto 30.06.2010).

Sri K.Mathevan Pillai, Chairman and Managing Director (From 01.07.2010 to 31.08.2010).

Sri V.G.Sankaranarayanan, Chairman and Managing Director (From 01.09.2010 to 28.02.2011).

Sri Sham Lal Goyal, IAS , Chairman and Managing Director (From 01.03.2011 onwards).

Sri K.Mathevan Pillai, Director (Finance), (Upto 31.08.2010).

Sri P.Muthusamy, Director (Finance) ,(From 18.03.2011 onwards).

Sri V.G.Sankaranarayanan, Director (Technical).

Transactions with related parties:

Remuneration to key management personnel : Rs.61.84 lakh (Previous yearRs.40.92 lakh )

Share application money paid to Joint Venture during the year : Rs. 50 lakh (Previous year Rs. Nil)

Guarantees given to Joint Venture during the year: Rs. Nil (Previous year Rs. Nil)

Guarantees given to Joint Venture as on 31.03.2011: Rs. 1750 lakh(Previous year Rs. 1750 lakh)

Expenditure incurred on employees deputed to Joint Venture:Rs.82.97 lakh (Rs.47.00 lakh)

Receivables as on 31st March :Rs. 146.37 lakh (Previous year Rs.62.68 lakh)

Payables as on 31st March: Rs. Nil (Previous yearRs. Nil)

19 EARNINGS PER SHARE (ACCOUNTING STANDARD - 20)

i) Earnings Rs. 4932.67 Lakh (Loss) [ Previous yearRs. 10383.51 lakh (loss) ]

ii) Number of Shares -Issued, Subscribed and Paid up -647071974 (Previous year 647071974)

iii) Earning Per Share Rs.-0.76 ( Previous yearRs.-1.60 )

(Basic and Diluted)

20 FINANCIAL REPORTING ON INTEREST IN JOINT VENTURES (ACCOUNTING STANDARD 27) FACT-RCF Building Products Ltd.

In the year 2008-09 , a jointventure with Rashtriya Chemicals and Fertilisers Ltd.(RCF) for manufacture of Rapid Building materials from Gypsum has been formed. The company has invested Rs. 1500 lakh (Previous year Rs. 1500 lakh ) as its share in the Joint venture. Out of an additional share of Rs. 269 lakh (Previous year Nil ) , Rs. 50 lakh (Previous year Nil ) has been paid as share application money during the year and payment towards the remaining Rs. 219 lakh (Previous year Nil ) is pending. Shares for Rs. 50 lakh (Previous year Nil ) paid is pending allotment. Other details are:- Name : FACT-RCF Building products Ltd. Country of incorporation : India. Ownership interest : 50% (31.03.11).

21 Figures for the previous year have been regrouped and recast wherever necessary to conform with the current year classification.


Mar 31, 2010

Rs. in Lakh

31.03.2010 31.03.2009

1 Contingent Liabilities not provided for:

(i) Claims against the company pending before various legal / statutory authorities and not acknowledged as debts in respect of:

a) Excise Duty 60.85 58.01

b) Service Tax 56.15 33.95

c) Sales Tax/Entry tax 421.74 458.81

d) Customs Duty 40.04 40.04

e) Income Tax 599.34 619.02

f) ESI 215.42 18.68

g) Power 0.00 196.71

h) Suppliers and contractors 178979.05 178618.82

i) Others 405.16 990.17

(ii) Excise duty demand of Rs. 24.85 lakh on purchase of Raw material, pending appeal, has not been considered since the liability rests with supplier as per order terms.(PreviousYear Rs. 23.79 lakh).

(iii) Guarantees given to various clients / Statutory Authorities for performance of contracts / obligations are not included, as the money value thereof cannot be ascertained. In addition company has provided Corporate Guarantee amounting to X 1750 lakh for the term loan of M/s FACT-RCF Building Product Ltd.

2 Cost of Railway siding includes X 85.43 lakh (Previous year Rs. 85.43 lakh) .written down value Rs. 4.27 lakh (Previous year Rs. 4.72 lakh), held jointly with M/s.Bharat Petroleum Corporation Limited (Kochi Refinery)

3 During the year the company had implemented SAP ERP system, which is under stabilisation. The cost of Licence fee and implementation amounting to Rs. 1007.10 iakh has been capitalised as Intangible Asset and will be depreciated equally over a period of five yeas from the date of commissioning.

4 During the year company has decided to scrap Ammonia & Urea plants at Cochin Division. These plants have been restated at estimated realisable value of Rs. 2740.79 lakh under Retired Plant and Machinery. Loss on retirement amounting to Rs. 1324.23 lakh has been charged during the year. Accordingly excess provision for Impairment loss amounting to Rs. 2010.53 lakh was withdrawn during the year. Obsolescence provision on spares of these plants have been made for X 364.84 lakh as against the original cost ofRs. 453.50 lakh and balance being the estimated realisable value

5 Fertiliser bonds issued by the Government of India towards the settlement of subsidy dues to the tune of Rs. 26576.00 lakh has been considered under " Long term Investments" and are maturing in the year 2022/2023. The Market value as on 31st March 2010 is Rs. 23658 lakh resulting in dimunition in value of Rs. 2918 lakh ( previous year Rs. 2551 lakh). The decline in Market value is considered to be temporary in nature and hence no provision is made

6 During the year the company has allotted Equity Shares worth Rs. 29230.00 lakh(2923 lakh Equity shares of Rs.10/- each) to the Goverment of India towards conversion of loan given to the Company at par as directed by the Government of India after obtaining approval from the Securities Exchange Board of India, though the SEBI guidline value per share works out to Rs. 35.49 at the time of allotment.

7 (i) During 2009-10 the Company received certificates worth for Rs.402.84 lakh(Previous yearRs. 152.52 lakh) under Duty Entitlement Passbook Scheme (DEPB), on export of Caprolactam, to be used for duty free import of Raw-materials, Stores and Spares etc. The customs Duty due on importing during the year has been adjusted against the DEPB value and accounted with cost of respective material. The DEPB entitlement unutilized as on 31.03.2010 is Rs.399.92 lakh (Previous yearRs.49.59 lakh).

(ii) The balance of Duty Free Credit Entitlement (DFCE) amount available as on 31.03.2010 for duty free import of Raw-materials, Stores and Spares etc is Nil.(Previous year is * 10.75 lakh.)

8 (i) lntheyear2008-09 Rs. 557.50 lakh has been paid to the Government of India towards repayment of principal amount due. However the same has been adjusted by the Government towards interest due vide letter No 11/13/2008/PAO/Ferts/1114 dtd 06.02.2009. The company has taken up with the Government to adjust the amount paid towards principal as a part of financial relief. In case the final decision is for adjustment towards interest, there will be additional interest to the tune of Rs. 114.64 lakh. (Previous yearRs. 44.95 lakh.) (ii) As per terms of loans released by the Government of India, the Government reserves the right to raise the interest rate to a penal rate in case of default in payment of interest due and repayment of principal due. No order from the Government was received by the company towards raising the interest rate for default/ delay in payment. Accordingly penal interest amounting to Rs. 805.75 lakh is not considered in the accounts (Previous yearRs. 536.25 lakh).

9 Loans and Advances unsecured considered good includes Rs. 72.98 lakh being amount paid against demands disputed pending appeals (Previous Year Rs.10.51 lakh). Provision has been made under Other liabilities with respect to Rs. 5.12 lakh, being the amount deposited in Court as per Court Order in OP 497/92 (Paul Mathew & Sons Vs FACT). The expenses incurred on bids submitted by the Company to clients, not charged to revenue pending decision on such bids, Rs. Nil (Previous year Rs. 0.49 lakh).

10 The contract for the barge transportation of Ammonia has been cancelled void ab initio during 2004-05 by the Company. Accordingly the shortfall charges has not been provided in the accounts. The Contractors claim for shortfall charges (for the period 01.04.2003 to 22.04.2008) and damages forRs. 177324.72 lakh which is pending before the Arbitrator has been included under Contingent liabilities. Interest of Rs. 497.40 lakh for 2009-10 receivable from the contractor on the outstanding mobilisation advance has been provided in the accounts. (Previous year Rs. 414.12 lakh.)

11 Sundry debtors shown as Considered good and Unsecured include Rs. 0.11 lakh covered by Bank Guarantees (Previous Year Rs. 1.99 lakh).

12 Cash and Bank balances include Rs. 147.64 lakh (Previous Year Rs. 149.67 lakh) being the balance of amount received from clients for execution of jobs on Total Responsibility basis lying in a specified account for meeting matching liabilities under Current Liabilities and Rs. 2.06 lakh (Previous Year Rs. 1.89 lakh) deposited in pursuance of Court Orders.

13 Subsidy/Concession on Ammonium Sulphate for the full year (f 822.92 lakh) and Factamfos for the period July 2009 to March 2010 (Rs. 7493.15 lakh) has been accounted on the basis of estimates as per known policy parameters, pending notification by the Government of India.

14 The closing stock of Ammonium Sulphate, Factamfos & MOP at plant and in-transit are valued at cost, which is lower than net realisation including the newly introduced Nutrient Based Subsidy w.e.f 01.04.2010.

15 a) Government of India has approved revision of wages for all categories of employees notionally with effect from 1.1.2007 and payment to be made effective from 1.8.2008.

a) Those who have retired from service between 1.1.2007 and 31.7.2008 shall be paid the terminal benefits only like leave salary, gratuity at the revised scale of pay.

b) Those who retired from service between 1.8.2008 to 31.7.2010 shall be paid the arrears of salary as well as the terminal benefits at the revised scale of pay.

c) The arrears of salary from 1.8.2008 to 3:j .7.2010 shall be paid to the employees who are in service in eight equal quarterly installments starting from August 2010.

The Government has approved the implementation of the revised scale of pay without any revision for perquisites and risk pay. HRA is payable at the pre-revised salary at applicable rates. The Government have considered the projected operational results for the year 2010-2011 and 2011 -2012 to assess the affordability of the wage revision implementation and agreed for payment of arrears over a period of two years in 8 equal quarterly installments.

The liability on account of the above amounting to Rs. 4633.32 lakh has been provided in the accounts. Consequential liability on account of gratuity and leave encashment in respect of existing employees are not ascertainable at this stage, as the same has to be ascertained by approved actuarial valuer which is a time consuming process and hence not provided in the accounts.

b) The Company as on date is not liable to provide for the arrears of salaries and wages (net of interim relief paid) for the period 01.01.1997 to 30.06.2001 and perquisites and other allowances for the period 20.10.2000 to 30.06.2001, in respect of its managerial and unionised employees, in view of the conditions in the directives of the Government of India while implementing the wage revision.

16 a Sundry creditors include X 1.55 lakh payable to Small Scale Industrial Undertakings to the extent such parties have been identified from the available documents / information. (Previous year 11.48 lakh). There are no dues (Previous year-NIL) owed by the Company to Small Scale Industrial Undertaking exceeding Rs. 1 lakh which is outstanding for more than 30days. b The company has not received information from vendors regarding their status under the Micro, Small and Medium Enterprises Development Act 2006 and hence the disclosure relating to unpaid as at the year end together with interest paid / payable has not be given.

17 The Company has deferred tax asset of Rs. 91508 lakh (Previous year Rs. 84065 lakh) as on 31.03.2010 because of unabsorbed depreciation and accumulated losses.

The deferred tax liability as on 31.03.10 is Rs. 29170 lakh (Previous year Rs. 31711 lakh). Since there is net deferred tax asset as on 31.03.2010, as matter of prudence the deferred tax asset is not considered in the Accounts.

18 The Company has a system of obtaining confirmation of balances from third parties. Some of the parties have confirmed the balances.

19 Information available upto 3rd August 2010 has been considered in finalising the accounts

20 Figures for the previous year have been regrouped and recast wherever necessary to conform with the current year classification.

21 RELATED PARTY DISCLOSURES (ACCOUNTING STANDARD 18)

List of related Parties

Joint Ventures

FACT-RCF Building Products Ltd.

Key Management Personnel

Dr George Sleeba, Chairman and Managing Director.(Upto 30.11.2009)

Sri A Asokan, Chairman and Managing Director.(From 01.12.2009)

Sri K.Mathevan Pillai, Director (Finance)

Sri A Asokan, Director (Marketing)

Sri V.G.Sankaranarayanan, Director (Technical)

Transactions with related parties:

Remuneration to key management personnel: Rs. 40.92 lakh (Previous yearRs. 23.39 lakh)

Guarantees given to Joint Venture: Rs. Nil (Previous year Rs. 1750 lakh)

Expenditure incurred on employees deputed to Joint Venture:Rs. 47.00 lakh (Rs. 12.48 lakh)

Receivables as on 31 st March: Rs. 62.68 lakh (Previous year Rs. 15.66 lakh)

Payables as on 31st March: Rs. Nil (PreviousyearRs. Nil)

 
Subscribe now to get personal finance updates in your inbox!