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Notes to Accounts of Indoco Remedies Ltd.

Mar 31, 2016

1. CORPORATE INFORMATION

Indoco Remedies Limited (the Company) is a public Limited Company domiciled in India and incorporated under the provision of the Companies Act, VII of 1913. Its Shares are listed on two stock exchanges in India. Indoco Remedies Limited is engaged in the manufacturing and marketing of Formulations (Finished Dosage Forms) and Active Pharmaceutical Ingredients (APIs). The Company caters to both Domestic and International markets. The Company has three wholly owned subsidiaries Xtend Industrial Designers and engineers Pvt Ltd, Indoco Pharmchem Ltd and Indoco Remedies Singapore PTe Ltd.

Note 2:

Tax deducted at source from Other Income consists of:

Rs. 34.80 lakhs on account of Professional or Tech Services (Previous year Rs. 17.11 lakhs)

Rs. 4.15 lakhs on account of Interest received (Previous year Rs. 3.86 lakhs)

Rs. 2.18 lakhs on account of Contracts (Previous year Rs. 6.77 lakhs)

Note 3:

Segment Reporting: Primary Segment:

The Company has only one business segment i.e. Pharmaceutical.

Note 4:

The Company is exposed to risk associated with foreign currency fluctuations as well as interest rate. The company has entered into forward contract and derivative contracts to hedge the interest rate risk & currency risk. However the company does not use these contracts for any speculative purposes.

The outstanding position of the forward contracts as at march 31, 2016 is Rs. 9,193.33 Lakhs (Previous Year Rs. 6,654.88 Lakhs) with Banks. Category wise break up is given here under:

Note 5:

The company has opted to avail the option provided under paragraph 46A of AS 11: The effects of changes in Foreign Exchange Rates inserted vide notification dated December 29, 2011. Consequently, the foreign exchange differences on long term Foreign Currency monetary item is accumulated in a "Foreign Currency monetary item Translation Difference Account" and accordingly exchange loss on long term foreign currency loans have been amortised over the balance period of such loans.

Note 6:

Related Party Disclosure as required by Accounting Standard 18 issued by the Institute of Chartered Accountants of India.

I. Related Parties

(A) enterprises that control or are controlled by the reporting company: Holding Companies NIL

Subsidiary Companies

I) Xtend Industrial Designers & engineers Pvt Ltd.

II) Indoco Pharmchem Limited

III) Indoco Remedies Singapore PTe Ltd. Fellow Subsidiaries NIL

(B) Associates and Joint Ventures of reporting company:

Associates Indoco Analytical Solution LLP

Joint Ventures NIL

(C) (i) Individuals owning and having control of the reporting company

Mr. Suresh G. Kare, Mrs. Aruna S. Kare, Ms. Aditi Panandikar, Mrs. madhura Ramani.

(ii) Their relatives:

Dr. milind Panandikar, Dr. Anup Ramani, Mr. Ramnath Kare, Mrs. Suman Naik, mrs. Sudha Pai, Mrs. Laxmi Bambolkar, Mrs. Pratima Vaidya, Mrs. Amita Rajadhyaksha, Mrs. meera Karnik.

(D) (i) Key management Personnel :

Mr. Suresh g. Kare, Ms. Aditi Panandikar, Mr. Sundeep V. Bambolkar.

(ii) Their Relatives :

Mrs. Aruna S. Kare, Mrs. madhura A. Ramani, Mr. Ramnath Kare, Mrs. Suman Naik, Mrs. Sudha Pai, Mrs. Laxmi Bambolkar, Dr. milind Panandikar, Mrs. Neeta Bambolkar, Mr. Vasant Bambolcar,

Ms. manali Bambolkar, Mr. Paresh Bambolkar.

(e) enterprises controlled by key management personnel :

SPA Holdings Pvt. Ltd., Shanteri Investments Pvt. Ltd., Indoco Capital markets Ltd., A K Services, Suresh Kare Foundation, Warren generics s.r.o, Indoco Remedies Singapore Pte Ltd.

Note 7:

Pursuant to the enactment of Companies Act 2013, the company has applied the estimated useful life as specified in Schedule II, except in certain assets as disclosed in the Accounting policy on Depreciation, Amortisation and depletion. Accordingly the unamortised carrying value is being depreciated / amortised over the revised / remaining useful lives. The written down value of Fixed Assets whose lives have expired at 1st April,2014 have been adjusted net of tax , in the opening balance of Profit and Loss account amounting to Rs. 471.40 Lakhs in the previous year.

Note 8:

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


Mar 31, 2015

1. CORPORATE INFORMATION

Indoco Remedies Limited (the Company) is a public Limited Company domiciled in India and incorporated under the provision of the Companies Act, VII of 1913. Its Shares are listed on two stock exchanges in India. Indoco Remedies Limited is engaged in the manufacturing and marketing of Formulations (Finished Dosage Forms) and Active Pharmaceutical Ingredients (APIs). The Company caters to both domestic and International markets Company has two wholly owned subsidiaries Xtend Industrial Designers and Engineers Pvt Ltd (formerly known as Indoco Industrial Designers & Engineers Pvt.Ltd.) and Indoco Pharmchem Ltd.

b) Terms/rights attached to equity shares

The Company has only one class of equity shares having a par value of Rs. 2 per share. Each holder of equity shares is entitled to one vote per share. All equity shares of the Company rank pari passu in all respects including the right to dividend. 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 31 March 2015, the amount of per share dividend recognized as distributions to equity shareholders was Rs. 1.60 on the face value of Rs. 2/- (Previous year Rs. 1.40 on the face value of Rs. 2/-) of the Company.

In the event of winding-up, subject to the rights of holders of shares issued upon special terms and conditions, the holders of equity shares shall be entitled to receive remaining assets, if any, in proportion to the number of shares held at the time of commencement of winding-up.

(Rs.In lakhs) As at 31st As at 31st March, 2015 March, 2014

Note 3 :

Contingent Liabilities not provided for:

A) Matters under dispute

i) Sales Tax (Rs. 163.03 lakhs has been paid under protest Previous year Rs. 118.08 lakhs) ** 441.79 396.83

ii) Excise / Service Tax *** 363.94 363.92

iii) Income Tax 23.34 134.84

B) Bank Guarantees 81.60 98.47

C) Letters of Credit 162.12 538.19

D) Estimated amount of contracts remaining to be executed on Capital Account, net of advances of Rs. 341.00 lakhs (Previous year Rs. 201.64 lakhs 637.32 776.13

E) Corporate Guarantee given to Bank on behalf of the Subsidiary 200.00 200.00

Legal Case - The Company had availed a factoring facility from a Bank who refused to pay the amount of USD 25,004 to it on failure of a Customer to pay for the same. The case is pending in the City Civil Court.

* Income Tax demand comprises of

a) TDS of Rs. 15.88 Lakhs (Previous year - Rs. 127.38 Lakhs ) for Short Deduction appearing in traces.

b) Penalty demand of Rs. 7.46 Lakhs (Previous year - Rs. 7.46 Lakhs ) raised by assessing officer, as per order under section 271(1)(c) of the Income Tax Act 1961 due to disallowance pertaining to depreciation on land for Assessment Year 2002-03, 2003-04. Company is in appeal before ITAT against said order.

** Sales Tax demand comprises of

a) Rs. 421.58 Lakhs (Previous year - Rs. 375.23 Lakhs ) (Rs. 163.03 Lakhs has been paid under protest Previous year Rs.118.08 Lakhs ) in respect of order from sales tax dept, Andhra Pradesh for classification dispute. The Company has filed an appeal before High Court which is yet to be heard.

b) Rs. 20.21 Lakhs (Previous year - Rs. 20.21 Lakhs ) as the amount of demand raised by sales tax officer for Financial Year 2007-08 and 2009-10 on account of input credit of entry tax. Company has filed appeal before Commissioner.

c) Rs. Nil (Previous year - Rs. 1.39 Lakhs) as the amount of demand raised by sales tax officer for year 2009-10 on account of adjustment of refund. The Company has filed an appeal with Commissioner appeals. During the current year the ruling has been issued in favour of the Company.

***Excise tax demand comprises of

a) Company appeal is pending before CESTAT for wrong availment of notification on exempted goods Rs. 0.66 Lakhs (Previous year - Rs. 0.66 Lakhs).

b) Appeal pending before Dy Commissioner for classification dispute Rs. 5.04 Lakhs ( Previous year - Rs. 5.04 Lakhs).

c) Appeal pending before CESTAT for classification dispute Rs. 2.71 Lakhs (Previous year - Rs. 2.71 Lakhs).

d) CENVAT credit on input service Rs. 91.97 Lakhs (Previous year - Rs. 91.97 Lakhs ), appeal pending before CESTAT.

e) Company has Filed an appeal before CESTAT for valuation of physician sample Rs. 1.25 Lakhs (Previous year - Rs. 1.25 Lakhs).

f) Company appeal is pending before Divisional Dy. Commissioner for wrong availment of CENVAT credit Rs. 0.79 Lakhs (Previous year - Rs. 0.79 Lakhs ).

g) Central excise department is in appeal before Supreme Court for Differential duty on intermixture of vitamins/ minerals amounting to Rs. 2.91 Lakhs (Previous year - Rs. 2.91 Lakhs).

h) CENVAT credit on input service Rs. 247.21 Lakhs (Previous year - Rs. 247.21 Lakhs), appeal pending before Commissioner of Service Tax.

i) Company appeal is pending before CESTAT for CENVAT credit availment on physician sample amounting to Rs. 0.20 Lakhs (Previous year - Rs. 0.20 Lakhs).

j) Central excise department is in appeal at Supreme Court for valuation of physician sample Rs. 11.20 Lakhs (Previous year - Rs. 11.20 Lakhs).

Note 4 :

Tax deducted at source from Other Income consists of:

Rs. 17.11 lakhs on account of Professional or Tech Services ( Previous year Rs. 13.85 lakhs) Rs. 3.86 lakhs on account of Interest received (Previous year Rs. 5.30 lakhs) Rs. 6.77 lakhs on account of Contracts (Previous year Rs. 2.23 lakhs)

Note 5 :

A) The Company is exposed to risk associated with foreign currency fluctuations as well as interest rate. The Company has entered into forward contract and derivative contracts to hedge the interest rate risk & currency risk. However the Company does not use these contracts for any speculative purposes.

B) Some of the ECB loans availed in JPY & SGDs have been converted into USD by entering into derivative contracts. The company has also entered into Interest Rate Swap agreements for all the ECBs. Thus, any cross currency movement in USD / JPY & USD / SGD as well as any movement in LIBOR has no impact on the future financials of the Company.

Note 6 :

The Company has opted to avail the option provided under paragraph 46A of AS 11: The Effects of changes in Foreign Exchange Rates inserted vide notification dated 29th December, 2011. Consequently, the foreign exchange differences on long term Foreign Currency Monetary item is accumulated in a "Foreign Currency Monetary item Translation Difference Account" and accordingly exchange loss on long term foreign currency loans have been amortised over the balance period of such loans.

Note 7 :

Related Party Disclosure as required by Accounting Standard 18 issued by the Institute of Chartered Accountants of India.

I. Related Parties

A. Enterprises that control or are controlled by the reporting company:

Holding Companies Nil

Subsidiary Companies I) Xtend Industrial Designers & Engineers Pvt. Ltd.

II) Indoco Pharmchem Limited.

Fellow Subsidiaries NIL

B. Associates and Joint Ventures of reporting company:

Associates Indoco Analytical Solution LLP

Joint Ventures Nil

C. (i) Individuals owning and having control of the reporting company

Mr. Suresh G. Kare, Mrs. Aruna S. Kare, Ms. Aditi Panandikar, Mrs. Madhura A. Ramani (ii) Their relatives :

Dr. Milind Panandikar, Dr. Anup Ramani, Mr. Ramnath Kare, Mrs. Suman Naik, Mrs. Sudha Pai, Mrs. Laxmi Bambolkar, Mrs. Pratima Vaidya, Mrs. Amita Rajadhyaksha, Mrs. Meera Karnik

D. (i) Key Management personnel:

Mr. Suresh G. Kare, Ms. Aditi Panandikar, Mr. Sundeep V. Bambolkar (ii) Their relatives:

Mrs. Aruna S. Kare, Mrs. Madhura A. Ramani, Mr. Ramnath Kare, Mrs. Suman Naik, Mrs Sudha Pai, Mrs. Laxmi Bambolkar, Dr Milind Panandikar, Mrs. Neeta Bambolkar, Mr. Vasant Bambolcar, Ms. Manali Bambolkar, Mr. Paresh Bambolkar

E. Enterprises controlled by key management personnel:

SPA Holdings Pvt. Ltd., Shanteri Investments Pvt. Ltd., Indoco Capital Markets Ltd., A K Services, Suresh Kare Foundation, Warren Generics s.r.o

The above information regarding Micro Enterprises and small Enterprises has been determined on the basis of information available with the Company. No interest has been accrued on delayed payments, if any.

Note 8 :

Pursuant to the enactment of Companies Act 2013, the Company has applied the estimated useful life as specified in Schedule II, except in certain assets as disclosed in the Accounting policy on Depreciation, Amortisation and depletion. Accordingly the unamortised carrying value is being depreciated / amortised over the revised / remaining useful lives. The written down value of Fixed Assets whose lives have expired at at 1st April, 2014 have been adjusted net of tax , in the opening balance of Profit and Loss account amounting to Rs. 471.40 Lakhs.

Note 9 :

On 21st April,2015 there was a fire at our Indore Central Warehouse, Samples and Goods to the tune of Rs. 6.65 Crores has been damaged in the fire. The same were adequately insured. The Company has lodged a claim with Insurance Company.

Note 10 :

On 6th April,2015 the Company acquired the Clinical Research organisation (CRO) a division from Piramal Enterprise Limited.

Note 11 :

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


Mar 31, 2013

1. CORPORATE INFORMATION

Indoco Remedies Limited (the Company) is a Public Limited Company domiciled in India and incorporated under the provisions of the Companies Act, VII of 1913. Its Shares are listed on two stock exchanges in India. Indoco Remedies Limited is engaged in the manufacturing and marketing of Pharmaceutical Formulations (Finished Dosage Forms) and Active Pharmaceutical Ingredients (APIs). The Company caters to both domestic and International markets. Company has two subsidiaries Indoco Industrial Designers & Engineers Pvt.Ltd. and Indoco Pharmchem Ltd.

Note 2 :

Tax deducted at source from Other Income consists of:

Rs. 5.65 lakhs on account of Professional or Tech Services ( Previous year Rs. 5.80 lakhs) Rs. 3.92 lakhs on account of Interest received (Previous year Rs. 15.27 lakhs) Rs. 0.95 lakhs on account of Contracts (Previous year Rs. 0.38 lakhs)

Note 3 :

Segment Reporting:

Primary Segment:

The Company has only one business segment i.e. Pharmaceutical.

Note 4 :

A) The Company is exposed to risk associated with foreign currency fluctuations as well as interest rate. The company has entered into forward contract and derivative contracts to hedge the interest rate risk & currency risk. However the company does not use these contracts for any speculative purposes.

Note 5 :

Changes in the Capital Structure

The Board of Directors in their meeting held on 29th March, 2012 proposed to subdivide one equity share having face value of Rs. 10/- each into five equity shares having face value of Rs. 2/- each fully paid up. The Board of Directors also proposed to enhance the authorised capital from present Rs. 1,800 lakhs to Rs. 2,500 lakhs and also to issue Bonus shares in proportion to one equity share of Rs. 2/- each fully paid for every two shares held by existing shareholders.

The members of the Company have given their approval to the above proposals by Postal Ballot on 08th May, 2012 and the allotment of the bonus shares was done on 21st May 2012.

Pursuant to the above approvals by the members, the Company has issued Bonus share by capitalising Securities Premium account. The Equity share capital as on date has been increased to Rs. 1,843.01 lakhs consisting of 9,21,50,355 Equity shares of Rs. 2/- each fully paid up.

Note 6 :

The company has opted to avail the option provided under paragraph 46A of AS 11: The Effects of changes in Foreign Exchange Rates inserted vide notification dated December,29 2011. Consequently, the foreign exchange differences on long term Foreign Currency Monetary item is accumulated in a "Foreign Currency Monetary item Translation Difference Account" and accordingly exchange loss on long term foreign currency loans have been amortised over the balance period of such loans.

Note 7 :

Related Party Disclosure as required by Accounting Standard 18 issued by the Institute of Chartered Accountants of India.

I. Related Parties

A. Enterprises that control or are controlled by the reporting company:

Holding Companies Nil

Subsidiary Companies I) Indoco Industrial Designers & Engineers Pvt. Ltd.

II) Indoco Pharmchem Limited.

Fellow Subsidiaries NIL

B. Associates and Joint Ventures of reporting company:

Associates Nil

Joint Ventures Nil

C. (i) Individuals owning and having control of the reporting company

Mr. Suresh G. Kare, Mrs. Aruna S. Kare, Mrs. Aditi Panandikar, Mrs. Madhura A. Ramani (ii) Their relatives :

Dr. Milind Panandikar, Dr. Anup Ramani, Mr. Ramnath Kare, Mrs. Suman Naik, Mrs. Sudha Pai, Mrs. Laxmi Bambolkar, Mrs. Pratima Vaidya, Mrs. Amita Rajadhyaksha, Mrs. Meera Karnik

D. (i) Key Management personnel:

Mr. Suresh G. Kare, Mrs. Aditi Panandikar, Mr. Sundeep V. Bambolkar

(ii) Their relatives:

Mrs. Aruna S. Kare, Mrs. Madhura A. Ramani, Mr. Ramnath Kare, Mrs. Suman Naik, Mrs Sudha Pai, Mrs. Laxmi Bambolkar, Dr Milind Panandikar, Mrs. Neeta Bambolkar, Mr. Vasant Bambolcar, Ms. Manali Bambolkar, Mr. Paresh Bambolkar

E. Enterprises controlled by key management personnel:

SPA Holdings Pvt Ltd., Shanteri Investments Pvt Ltd., Indoco Capital Markets Ltd., A K Services, Suresh Kare Indoco Foundation

Note 8 :

During the year the Company has subscribed to 15,015 shares of Indoco Industrial Designers and Engineers Private Limited face Value Rs. 10/- at a premium of Rs. 140/- per share. Pursuant to the Issue Indoco Industrial Designers and Engineers Private Limited became a subsidiary of Indoco Remedies Limited.

Note 9 :

During the year the Company has also subscribed to 50,000 shares of Indoco Pharmchem Limited face Value Rs. 10/- per share at par. Pursuant to the Issue Indoco Pharmchem Limited became a subsidiary of Indoco Remedies Limited.

Note 10 :

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


Mar 31, 2012

1. CORPORATE INFORMATION

Indoco Remedies Limited (the Company) is a Public Limited Company domiciled in India and incorporated under the provision of the Companies Act, VII of 1913. Its Shares are listed on two stock exchanges in India. Indoco Remedies Limited is engaged in the manufacturing and marketing of Pharmaceutical Formulations (Finished Dosage Forms) and Active Pharmaceutical Ingredients (APIs). The Company caters to both domestic and International markets.

a) Terms/rights attached to equity shares

The company has only one class of equity shares having a par value of Rs 10 per share (Refer Note No. 37 for disclosure regarding post balance sheet event). Each holder of equity shares is entitled to one vote per share. All equity shares of the Company rank pari passu in all respects including the right to dividend. 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 31st March 2012, the amount of per share dividend recognized as distributions to equity shareholders was Rs 1.10 on the face value of Rs 2/- per share (Previous year Rs 8/- on the face value of Rs 10/- per share.)

In the event of winding-up, subject to the rights of holders of shares issued upon special terms and conditions, the holders of equity shares shall be entitled to receive remaining assets, if any, in proportion to the number of shares held at the time of commencement of winding-up.

(Rs Lakhs) Current Year Previous Year As at 31.03.2012 As at 31.03.2011

Note 2 :

Contingent Liabilities not provided for:

A) Matters under dispute

i) Sales Tax (Rs 100.87 lakhs has been paid under protest Previous year Rs 72.65 lakhs) 203.59 189.81

ii) Excise / Service Tax 365.78 370.58

iii) Income Tax 258.22 564.09

iv) In respect of claims made against the Company not acknowledged as debts (Labour matters) - 6.12

B) Bank Guarantees 245.09 150.85

C) Letters of Credit 523.77 564.84

D) Estimated amount of contracts remaining to be executed on Capital Account, net of advances of Rs 26.21 lakhs (Previous year Rs 2,163.32 lakhs) 598.86 2,985.02

Note 3 :

Company's proposal to the "Department of Scientific and Industrial Research" (DSIR) "Ministry of Science & Technology", Government of India for financial support under TDDP project of DSIR has been approved by DSIR in the previous year. Company has received Rs 20 lakhs as an advance under the said project. The said advance is grouped under the head "Non-Current Liabilities" - Other Long Term Liabilities at "Note 7" forming part of the Balance Sheet.

Note 4 :

Tax deducted at source from Other Income consists of:

Rs 7.40 lakhs on account of Professional or Technical Services ( Previous year Rs 4.45 lakhs)

Rs 15.25 lakhs on account of Interest received (Previous year Rs 29.55 lakhs)

B) Some of the ECB loans availed in JPY & SGDs have been converted into USD by entering into derivative contracts. The company has also entered into Interest Rate Swap agreements for all the ECBs. Thus, any cross currency movement in USD / JPY & USD / SGD as well as any movement in LIBOR has no impact on the future financials of the company.

Note 5 :

Changes in the Capital Structure post Balance Sheet date

The Board of Directors in their meeting held on 29th March, 2012 proposed to subdivide one equity share having face value of Rs 10/- each into five equity shares having face value of Rs 2/- each fully paid up. The Board of Directors also proposed to enhance the authorised capital from present Rs 1,800 lakhs to Rs 2,500 lakhs and also to issue Bonus shares in proportion to one equity share of Rs 2/- each fully paid for every two shares held by existing shareholders.

The members of the Company have given their approval to the above proposals by Postal Ballot on 08th May, 2012 and the allotment of the bonus shares was done on 21st May, 2012.

Pursuant to the above approvals by the members, the Company has issued Bonus share by capitalising Securities Premium account. The Equity share capital as on the reporting date has been increased to Rs 1,843.01 lakhs consisting of 9, 21, 50,355 Equity shares of Rs 2/- each fully paid up.

Accordingly, the calculation of proposed dividend has been done on the entire new share capital of 9,21,50,355 equity shares of Rs 2/- each fully paid up.

Note 6 :

During the year unclaimed share application money amounting to Rs 7.60 lakhs (Previous Year NIL) has been transferred to Investor Education and Protection Fund.

Note 7 :

Donation includes amount of Rs 49,00,000 paid to South Goa District Congress (I) Committee and Rs10,00,000 to Goa Pradesh Committee Previous Year (Rs Nil ).

Note 8 :

The company has opted to avail the option provided under paragraph 46A of AS 11 regarding the effects of Effects of changes in Foreign Exchange Rates inserted vide notification dated December,29 2011. Consequently, the foreign exchange differences on long term Foreign Currency Monetary item is accumulated in a "Foreign Currency Monetary item Translation Difference Account" and accordingly exchange loss on long term foreign currency loans have been amortised over the balance period of such loans.

Note 9 :

Related Party Disclosure as required by Accounting Standard 18 issued by the Institute of Chartered Accountants of India.

I. Related Parties

A. Enterprises that control or are controlled by the reporting company:

Holding Companies Nil

Subsidiary Companies Nil

Fellow Subsidiaries Nil

B. Associates and Joint Ventures of reporting company:

Associates Nil

Joint Ventures Nil

C. (i) Individuals owning and having control of the reporting company:

Mr. Suresh G. Kare, Mrs. Aruna S. Kare, Ms. Aditi Panandikar, Mrs. Madhura A. Ramani (ii) Their relatives :

Dr. Milind P. Panandikar, Dr. Anup Ramani, Mr. Ramnath Kare, Mrs. Suman Naik, Mrs. Sudha Pai, Mrs. Laxmi Bambolkar, Mrs. Pratima Vaidya, Mrs. Amita Rajadhyaksha, Mrs. Meera Karnik

D. (i) Key Management personnel:

Mr. Suresh G. Kare, Ms. Aditi Panandikar, Mr. Sundeep V.Bambolkar (ii) Their relatives:

Mrs. Aruna S. Kare, Mrs. Madhura A. Ramani, Mr. Ramnath Kare, Mrs. Suman Naik, Mrs Sudha Pai, Mrs. Laxmi Bambolkar, Dr Milind P. Panandikar, Mrs. Neeta Bambolkar, Mr. Vasant Bambolcar, Ms. Manali Bambolkar, Mr. Paresh Bambolkar

E. Enterprises controlled by key management personnel:

SPA Holdings Pvt Ltd., Shanteri Investments Pvt Ltd., Indoco Industrial Designers and Engineers Pvt. Ltd., Indoco Capital Markets Ltd., A K Services, Suresh Kare Indoco Foundation

Note 10 :

Miscellaneous Expenditure to the extent not written off includes Rs. Nil (previous year Rs. 1.40 lakhs on account of preliminary expenses incurred by erstwhile M/s. Shree Herbal Technologies Ltd.)

Note 11 :

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


Mar 31, 2011

Current Year Previous Year (Rs.in Lakhs) (fin Lakhs)

1) Contingent Liabilities Not Provided For :

(a) Matters under dispute

(i) Sales Tax 189.81 199.48

(Rs. 72.65 lakhs has been paid under protest Previous year Rs. 72.65 lakhs)

(ii) Excise / Service Tax 370.58 370.58

(iii) Income Tax

- Where the Company is in appeal 564.09 120.27 (Rs. 48.30 lakhs has been paid under protest Previous year Rs. 48.30 lakhs)

- Where the department is in appeal 263.98 269.97

(iv) In respect of claims made against the Company not acknowledged as debts (Labour matters) 6.12 3.57

(b) Bank Guarantees 150.85 205.82

(c) Letters of Credit 564.84 792.24

(d) Estimated amount of contracts remaining to be executed on Capital Account, net of advances of Rs. 2,163.32 lakhs (Previous year Rs. 338.41 lakhs) 2,985.02 1,056.30

(e) Discounting of debtors to the extent not actually realized on Balance Sheet date Nil 70.33

2) Research & Development expenses include salary & wages, chemicals/materials consumed, electricity, travel, repairs, insurance premium and such similar expenses.

3) Companys proposal to the "Department of Scientific and Industrial Research" ( DSIR ) "Ministry of Science & Technology", Government of India for financial support under TDDP project of DSIR has been approved by the DSIR during the year and Company has received Rs. 20 Lakhs as an advance under the said project. The said advance is grouped under the head "Other Liabilities" at "Schedule I" forming part of the Balance Sheet.

4) Tax deducted at source from Other Income consists of: Rs. 4.45 Lakhs on account of Professional or Tech Services(Previous year Rs. 8.87 Lakhs) ^ 29.55 Lakhs on account of Interest received (Previous year Rs. 20.75 Lakhs)

5) A) The Company is exposed to risk associated with foreign currency fluctuations as well as interest rate. The Company has entered into forward contracts and derivative contracts to hedge the interest rate risk and currency risk. These transactions are in consistence with the Companys Risk Management Policy. However the company does not use these contracts for any speculative purposes.

B) Out of total ECB loans, part of ECB is availed in JPY & SGDs which are converted into USD by entering into derivative contracts. The Company has also entered into Interest Rate Swap agreements for all the ECBs. Thus, any cross currency movement in USD/JPY & USD/SGD as well as any movement in LIBOR has no impact on the future financials of the company.

6) Miscellaneous Expenditure to the extent not written off includes Rs. Nil (Previous year Rs. 3.64 Lakhs) on account of product registration charges and Rs. 1.40 Lakhs (Previous year Rs. 1.57 Lakhs) on account of preliminary expenses incurred by erstwhile M/s. Shree Herbal Technologies Ltd.

7) Related Party Disclosures as required by Accounting Standard 18 issued by the Institute of Chartered Accountants of India.

I Related Parties

A. Enterprises that control or are controlled by the reporting company Holding Companies Nil Subsidiary Companies Nil Fellow Subsidiaries Nil

B. Associates and Joint Ventures of reporting company Associates Nil Joint Ventures Nil

C. (i) Individuals owning and having control of the reporting company

Mr. Suresh G. Kare, Mrs. Aruna S. Kare, Mrs. Aditi M. Panandikar, Mrs. Madhura A. Ramani (ii) their relatives

Dr. Milind P. Panandikar, Dr. Anup Ramani, Mr. Ramnath Kare, Mr. Ashok Kare, Mrs. Suman Naik, Mrs. Sudha Pai, Mrs. Laxmi Bambolkar, Mrs. Pratima Vaidya, Mrs. Amita Rajadhyaksha, Mrs. Meera Karnik

D. (i) Key Management personnel

Mr. Suresh G. Kare, Mrs. Aditi Kare Panandikar, Mr. Sundeep Bambolkar, Mr. F. X. Coutinho (Part of the year)

(ii) their relatives :

Mrs. Aruna S. Kare, Mrs. Madhura A. Ramani, Mr. Ramnath Kare, Mr. Ashok Kare, Mrs. Suman Naik, Mrs Sudha Pai, Mrs. Laxmi Bambolkar, Dr. Milind P. Panandikar, Ms. Ivy Coutinho, Ms. Sushma Dsouza, Ms. Karen Lemos, Mr. John Coutinho, Mrs. Celine Elias, Mrs. Alice Pillai, Mrs. Neeta Bambolkar, Mr. Vasant Bambolcar, Ms. Manali Bambolkar, Mr. Paresh Bambolkar,

E. Enterprises controlled by key management personnel

SPA Holdings Pvt Ltd, Shanteri Investments Pvt Ltd, Indoco Industrial Designs and Engineers Pvt. Ltd., Indoco Capital Markets Ltd, A K Services

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

9) Previous years figures have been regrouped and reclassified wherever necessary.


Mar 31, 2010

Current Year Previous Year Rs Lakhs Rs Lakhs

1) Contingent Liabilities Not Provided For :

(a) Matters under dispute

(i) Sales Tax 199.48 10.37 (Rs 72.65 lakhs has been paid under protest)

(ii) Excise / Service Tax....... 370.58 146.83

(iii) Income Tax.................

- Where the Company is in appeal 120.27 231.95 (Rs 48.30 lakhs has been paid under protest)

- Where the department is in appeal 269.97 436.62

(iv) In respect of claims made against the Company not acknowledged as debts (Labour matters) 3.57 5.49

(b) Bank Guarantees ........... 205.82 98.52

(c) Letters of Credit .......... 792.24 734.35

(d) Estimated amount of contracts remaining to be executed on Capital Account [Net of advances of Rs 338.41 lakhs (Previous year Rs 589.97 lakhs)] ..... 1,056.30 1,047.83

(e)Discounting of debtors to the extent not actually realized as on Balance Sheet date........ 70.33 195.08

2) Research & Development expenses include salary & wages, chemicals/materials consumed, electricity, travel, repairs, insurance premium and similar such expenses.

3) Tax deducted at source from Other Income consists of:

Rs 8.87 lakhs on account of Professional or Tech Services (Previous year Rs. 7.32 lakhs) Rs Nil on account of Job work Charges (Previous Year Rs. 0.48 lakhs) Rs 20.75 lakhs on account of Interest received (Previous Year Rs.7.78 lakhs)

4) The Companys exclusive business is manufacturing and selling of pharmaceutical products comprising of bulk drugs and formulations and therefore it is the only reportable segment as per Accounting Standard 17 on segment reporting issued by the Institute of Chartered Accountants of India. Although the Company caters to the needs of export markets, the export turnover is not significant in the context of total turnover. As such there is no reportable geographical segment.

5) The Company is exposed to various financial risks which relate to changes in exchange rates and interest rates. The Company hedges risks of the aforesaid nature using forward contracts. The outstanding position and exposure is as under:

a) As at 31 st March, 2010 the outstanding position in respect of the forward contracts is Rs.2851.88 lakhs with Banks

6) Miscellaneous Expenditure to the extent not written off includes Rs. 3.64 lakhs (Previous year Rs. 12.20 lakhs) on account of product registration charges & Rs. 1.57 lakhs (Previous year Rs. 1.75 lakhs) on account of preliminary expenses incurred by erstwhile Shree Herbal Technologies Ltd.

7) Related Party Disclosure as required by Accounting Standard 18 issued by the Institute of Chartered Accountants of India.

I Related Parties

A. Enterprises that control or are controlled by the reporting company

Holding Companies Nil

Subsidiary Companies Nil

Fellow Subsidiaries Nil

B. Associates and Joint Ventures of reporting company

Associates Nil

Joint Ventures Nil

C. (i) Individuals owning and having control of the reporting company

Mr. Suresh G. Kare, Ms. Aruna S. Kare, Ms. Aditi Kare Panandikar, Ms. Madhura A. Ramani (ii) their relatives

Dr. Milind Panandikar, Dr. Anup Ramani, Mr. Ramnath Kare, Mr. Ashok Kare, Ms. Suman Naik, Ms. Sudha Pai, Ms. Laxmi Bambolkar, Ms. Pratima Vaidya, Ms. Amita Rajadhyaksha, Ms. Meera Karnik

D. (i) Key Management personnel

Mr. Suresh C. Kare, Ms. Aditi Kare Panandikar, Mr. FX Coutinho, Mr. Sundeep V. Bambolkar (ii) their relatives :

Ms. Aruna S. Kare, Ms. Madhura A. Ramani, Mr. Ramnath Kare, Mr. Ashok Kare, Ms. Suman Naik, Ms. Sudha Pai, Ms. Laxmi Bambolkar, Dr. Milind Panandikar, Ms. Ivy Coutinho, Ms. Sushma Dsouza, Ms. Karen Lemos, Mr. John Coutinho, Ms. Celine Elias, Ms. Alice Pillai, Ms. Neeta Bambolkar, Mr. Vasant Bambolcar, Ms. Manali Bambolkar,

Mr. Paresh Bambolkar

E. Enterprises controlled by key management personnel

SPA Holdings Pvt Ltd, Shanteri Investments Pvt Ltd, Indoco Global Markets Pvt Ltd, Indoco Capital Markets Ltd, and AK Services.

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

9) Previous years figures have been regrouped and reclassified wherever necessary.

 
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