Home  »  Company  »  INEOS Styrolution  »  Quotes  »  Notes to Account
Enter the first few characters of Company and click 'Go'

Notes to Accounts of INEOS Styrolution India Ltd.

Mar 31, 2015

1. Company information

STYROLUTION ABS (INDIA) LIMITED (the 'Company') is a public limited Company domiciled in India and is listed on the Bombay Stock Exchange (BSE) and National Stock Exchange (NSE). The Company is engaged in the "Engineering Thermoplastics". The Company has manufacturing facilities at Nandesari, Moxi and Katol and Research and Development centre at Moxi .

2. Rights, preferences and restrictions attached to the shares

The Company has one class of equity share having a par value of Rs. 10/- per share. Each shareholder is eligible for one vote per share held. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting, except in case of interim dividend. In the event of liquidation, the equity shareholders are eligible to receive remaining assets of the Company after distribution of all preferential amounts, in proportion to their shareholding.

3. Information on equity shares allotted without receipt of cash or allotted as bonus shares or shares bought back during five years immediately preceding March 31,2015.

No shares are allotted as bonus or allotted without receipt of cash during past five years and there has been no buy back of shares.

4. Pursuant to the Open Offer of Styrolution South East Asia Pte Ltd, Singapore ('SSE) which closed on 3 March 2015, SSE received 300 shares from the public. As a result thereof, the total shareholding of SSE as on 31 March 2015 was increased to 13,189,518 equity shares (75.002%). SSE needs to divest 0.002% (300 shares only) of the Company's equity share capital by 12 March 2016 through various methods allowed by SEBI. In order to raise the public shareholding to 25%, Company had applied to SEBI for granting approval for sale of 300 shares by the SSE, through one or multiple transactions on the floor of the stock exchanges in the normal window to meet minimum public shareholding norms which was approved by SEBI vide its letter dated 20 April 2015.

5. Contingent liabilities and commitments

I) Contingent liabilities

a) Income tax 292.94 264.89

b) Excise duty 80.56 55.87

c) Sales tax 72.62 72.62

d) Bank guarantees - 20.00

e) Claims against the Company not acknowledged as debt 76.81 76.89

f) Letter of credit pending shipment - 52.33

Note: Future cash outflows in respect of (a), (b) and (c) above are determinable only on receipt of judgements/ decisions pending with various forums/ authorities.

II) Commitments

Estimated amount of contracts remaining to be executed on capital account and not provided for ( Net of capital advance) 77.72 1001.57

Other commitments

The Company has entered into firm commitments for purchase of 40,000 MT of Styrene monomer during the period January 15 to December 15 out of which the company has procured 6,731 MT up to March 15.

6. The Company has installed Wind Turbine Generators (WTG) at Lamba, Dhank and Pransla in Gujarat. The Local Power Station of the Madhya Gujarat Vij Company Limited (MGVCL) grants credit for the power units generated by the WTG. Accordingly, the amount of Power and Fuel consumption disclosed is net of such credit given by MGVCL aggregating to Rs.486.33 (Lakhs) (Previous Year Rs. 427.17 (Lakhs)).

7. The Company manufactures and sells ABS and SAN i.e. "Highly Specialized Engineering Thermoplastics". These products have the same risks and returns, which are predominantly governed by market conditions, namely demand and supply position. The Company sells both the products within the country and hence the segment based on geographical risk factors which may be present in different countries is not applicable. Thus, in the context of Accounting Standard 17 "Segment Reporting", notified under Section 211 (3C) [Companies (Accounting Standards) Rule, 2006, as amended] and other relevant provisions of the Companies Act, 1956, there is only one identified primary and secondary segment. As the Company's business activity falls within a single primary business segment and single geographical segment, the financial statements are reflective of the information required by Accounting Standard 17 on Segment Reporting.

8. Disclosure of the relationship and transactions with the related parties as defined in Accounting Standard 18 "Related Party Disclosures", notified under Section 211 (3C) [Companies (Accounting Standards) Rule, 2006, as amended] and other relevant provisions of the Companies Act, 1956 is as follows:

RELATED PARTY TRANSACTIONS:

A. List of Related Parties with whom transactions have taken place (as identified and certified by the management)

1. Where control exists Ultimate Holding Company

Styrolution Holding GmbH Germany (from October 1, 2011 to November 16, 2014) INEOS AG Switzerland (from November 17, 2014)

Holding Company holds 75.00% of the equity share capital (also refer Note 3(a))

Wholly owned Subsidiary (w.e.f. March 1, 2014)

Styrolution (Jersey) Limited Channel Islands (upto January 27, 2014) Styrolution South East Asia Pte. Ltd. Singapore (w.e.f January 28, 2014) Styrolution India Private Limited Mumbai

2. Where transactions have taken place Fellow subsidiaries

Styrolution Korea Ltd Korea Styrolution (Jersey) Limited Channel Islands (w.e.f January 28, 2014) Styrolution South East Asia Pte. Ltd. Singapore (upto January 27, 2014) Styrolution Thailand Co., Ltd. Thailand

Styrolution Group GmbH Germany Styrolution Ludwigshafen GmbH (formerly known as Styrolution GmbH) Frankfurt am Main Styrolution Europe GmbH Frankfurt am Main Styrolution Holding Company Mauritius

INEOS SALES U.K. LIMITED Great Britain (from November 17, 2014)

INEOS EUROPE AG Switzerland (from November 17, 2014)

Key Managerial Personnel Mr. Myung Suk Chi Managing Director

9. The Company's significant leasing arrangements are mainly in respect of residential and office premises. The aggregate lease rentals payable on these leasing arrangements are charged as Rent under "Other Expenses" in Note 28. These leasing arrangements are for a period not exceeding three years and are in most cases renewable by mutual consent, on mutually agreeable terms.

10. The Company has undertaken necessary steps to comply with the Transfer Pricing regulations. The Company's international transactions with associated enterprises are at arm's length as per independent accountant's report for the year ended 31 March 2014. The Management is of the opinion that the international and domestic transactions post 31 March 2014 continue to be at arm's length and hence the aforesaid legislation will not have any impact on the financial statements, particularly on the amount of tax expense and that of provision for taxation.

11. Provision for contingencies

Represents estimates made for probable liabilities arising out of commercial transactions with parties and pending settlement of duties/levies with various government authorities. The information usually required by Accounting Standard 29 "Provisions, Contingent Liabilities and Contingent Assets" notified under section 211 (3C) of the Companies Act 1956, is not disclosed on the grounds that it can be expected to prejudice the interest of the Company. The timing of the outflow with regard to the said matters depends on exhaustion of remedies available to the Company under the Law and hence the Company is not able to reasonably ascertain the timing of the outflow.

12. Current tax expense for the period comprises of charge for the period 1 April 2014 to March 2015 and reversal of tax expense for Jan 14 - March 14 on actualization of the tax expense for year ended 31 March 2014 based on the return of income filed. This has resulted in lower current tax charge for the period ended March 31, 2015. Increase in net deferred tax liability as at 31 March 2015 on account of depreciation and a reduction in deferred tax assets as on March 31, 2015 as compared to December 31, 2013 has resulted in higher deferred tax expense for the period ended March 31, 2015.

13. Current period financial statements are for 15 months and accordingly not comparable to previous year.


Dec 31, 2013

1. Company information

STYROLUTION ABS (INDIA) LIMITED (the ''Company'') is a public limited Company domiciled in India and is listed on the Bombay Stock Exchange (BSE) and National Stock Exchange (NSE). The Company is a market leader in the "Engineering Thermoplastics". The Company has manufacturing facilities at Nandesari, Moxi and Katol and Research and Development centre at Moxi .

2. The Company has installed Wind Turbine Generators (WTG) at Lamba, Dhank and Pransla in Gujarat. The Local Power Station of the Madhya Gujarat Vij Company Limited (MGVCL) grants credit for the power units generated by the WTG. Accordingly, the amount of Power and Fuel consumption disclosed is net of such credit given by MGVCL aggregating to Rs. 427.17 (Lakhs) (Previous Year Rs. 491.02 (Lakhs)).

3. The Company manufactures and sells ABS and SAN i.e. "Highly Specialized Engineering Thermoplastics". These products have the same risks and returns, which are predominantly governed by market conditions, namely demand and supply position. The Company basically sells both the products within the country and hence the segment based on geographical risk factors which may be present in different countries is not applicable. Thus, in the context of Accounting Standard 17 ''''Segment Reporting'''', notified under Section 211 (3C) [Companies (Accounting Standards) Rule, 2006, as amended] and other relevant provisions of the Companies Act, 1956, there is only one identified reportable segment. As the Company''s business activity falls within a single primary business segment and single reportable geographical segment, the financial statements are reflective of the information required by Accounting Standard 17 on Segment Reporting.

4. Disclosure of the relationship and transactions with the related parties as defined in Accounting Standard 18 ''''Related Party Disclosures'''', notified under Section 211 (3C) [Companies (Accounting Standards) Rule, 2006, as amended] and other relevant provisions of the Companies Act, 1956 is as follows:

5. The Company''s significant leasing arrangements are mainly in respect of residential and office premises. The aggregate lease rentals payable on these leasing arrangements are charged as Rent under "Other Expenses" in Note 28. These leasing arrangements are for a period not exceeding three years and are in most cases renewable by mutual consent, on mutually agreeable terms.

The above information regarding Micro and Small Enterprises has been determined to the extent such parties have been identified on the basis of information available with the Company. This has been relied upon by the Auditors.

6. The Company has undertaken necessary steps to comply with the Transfer Pricing regulations. The Company''s international transactions with associated enterprises are at arm''s length as per independent accountant''s report for the year ended 31 March 2013. The Management is of the opinion that the international transactions post 31 March 2013 continue to be at arm''s length and hence the aforesaid legislation will not have any impact on the financial statements, particularly on the amount of tax expense and that of provision for taxation.

7. Employee benefits

The Company has classified the various benefits provided to employees as under

1 Defined contribution plans

a. Provident Fund

b. Superannuation Fund

c. State defined contribution plan

i. Employer''s contribution to Employee''s state insurance

The Company has no further obligation beyond making contribution to the respective fund.

8. Provision for current tax is based on the results for the year ended 31 December 2013, in accordance with the provisions of the Income Tax Act, 1961. The final tax liability will be determined on the basis of the operations for the year 1 April 2013 to 31 March 2014, being the tax year of the Company.

9. The Board of Directors of the company at their meeting held on November 20, 2013 approved the proposal of making Styrolution India Private Limited its Wholly Owned Subsidiary by acquiring 100% of its equity shares, subject to any mandatory approvals, which the Company is in the process of obtaining.

10. Figures for the previous year have been regrouped and reclassified wherever necessary, to conform to the current year''s classification.


Dec 31, 2012

1. Company information

Styrolution ABS (India) Limited (Formerly known as INEOS ABS (India) Limited) (the ''Company'') is a public limited Company domiciled in India and is listed on the Bombay Stock Exchange (BSE) and National Stock Exchange (NSE). The Company is a market leader in the "Engineering Thermoplastics". The Company has manufacturing facilities at Nandesari, Moxi and Katol and Research and Development centre at Moxi.

a. Rights, preferences and restrictions attached to the shares

The Company has one class of equity share having a par value of Rs. 10/- per share. Each shareholder is eligible for one vote per share held. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting, except in case of interim dividend. In the event of liquidation, the equity shareholders are eligible to receive remaining assets of the Company after distribution of all preferential amounts, in proportion to their shareholding.

b. Information on equity shares allotted without receipt of cash or allotted as bonus shares or shares bought back during five years immediately preceding December 31,2012.

No shares are allotted as bonus or allotted without receipt of cash during past five years and there has been no buy back of shares.

2. Contingent liabilities and commitments

I) Contingent liabilities

a) Income tax 243.85 257.59

b) Excise duty 73.63 69.44

c) Sales tax 72.62 72.62

d) Bank guarantees 13.80 13.80

e) Claims against the Company not acknowledged as debt 76.83 76.83

f) Letter of credit pending shipment 2,393.84 2,227.49

Note:

Future cash outflows in respect of (a), (b) and (c) above are determinable on receipt of judgements/ decisions pending with various forums/ authorities.

3. The Company has installed Wind Turbine Generators (WTG) at Lamba, Dhank and Pransla in Gujarat. The Local Power Station of the Madhya Gujarat Vij Company Limited (MGVCL) grants credit for the power units generated by the WTG. Accordingly, the amount of Power and Fuel consumption disclosed is net of such credit given by MGVCL aggregating to Rs. 491.02 (Lakhs) (Previous Year Rs. 389.56 (Lakhs)).

4. The Company manufactures and sells ABS and SAN i.e. "Highly Specialized Engineering Thermoplastics". These products have the same risks and returns, which are predominantly governed by market conditions, namely demand and supply position. The Company basically sells both the products within the country and hence the segment based on geographical risk factors which may be present in different countries is not applicable. Thus, in the context of Accounting Standard 17 "Segment Reporting", notified under Section 211 (3C) [Companies (Accounting Standards) Rule, 2006, as amended] and other relevant provisions of the Companies Act, 1956, there is only one identified reportable segment. As the Company''s business activity falls within a single primary business segment and single reportable geographical segment, the financial statements are reflective of the information required by Accounting Standard 17 on Segment Reporting.

5. As on 31 December 2012, the Company has 5 forward contracts totaling to USD 98.48 Lakhs (Rs. 5,409.96 Lakhs) for the purposes of hedging its foreign currency exposure. The unamortized premium of Rs. 28.77 Lakhs pertaining to the same will be recognized subsequently. Foreign currency exposure that is not hedged as at 31 December 2012 is as follows:-

6. The Company''s significant leasing arrangements are mainly in respect of residential and office premises. The aggregate lease rentals payable on these leasing arrangements are charged as Rent under "Other Expenses" in Note 27.

These leasing arrangements are for a period not exceeding three years and are in most cases renewable by mutual consent, on mutually agreeable terms.

7. The Company has undertaken necessary steps to comply with the Transfer Pricing regulations. The Management is of the opinion that the international transactions are at arm''s length and hence the aforesaid legislation will not have any impact on the financial statements, particularly on the amount of tax expense and that of provision for taxation.

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

1. The expected rate of return on plan assets is based on market expectations at the beginning of the year. The rate of return on long-term government bonds is taken as reference for this purpose.

2. There is no significant change in the accounting estimates due to applicability of AS-15 (Revised) as the parameters consid- ered in the year 2012 are the same as those considered in the year 2011.

3 The Actuarial liability for leave encashment and compensated absences as at year end is Rs. 108.66 (Lakhs) (Previous Year Rs. 93.15 (Lakhs)). Current year charge is included in Salaries, Wages and Bonus (Refer Note 26).

Represents estimates made for probable liabilities arising out of commercial transactions with parties and pending settlement of duties/levies with various government authorities. The information usually required by Accounting Standard 29 "Provisions, Contingent Liabilities and Contingent Assets" notified under section 211 (3C) of the Companies Act 1956, is not disclosed on the grounds that it can be expected to prejudice the interest of the Company. The timing of the outflow with regard to the said matters depends on exhaustion of remedies available to the Company under the Law and hence the Company is not able to reasonably ascertain the timing of the outflow.

8. Earnings per equity share (EPS)

EPS is calculated by dividing the profit attributable to the equity shareholders by average number of equity shares outstanding during the year. Numbers used in calculating basic and diluted earnings per equity shares are as stated below:

9. Previous year''s financial statements were audited by a firm of Chartered Accountants other than B S R & Co.

10. Figures for the previous year have been regrouped and reclassified wherever necessary, to conform to the current year''s classification.


Dec 31, 2011

1. (Rupees '000) (Rupees '000)

CONTINGENT LIABILITIES

NOT PROVIDED FOR IN RESPECT OF:

a) Income Tax 25,759 12,718

b) Excise Duty 6,944 5,842

c) Sales Tax 7,262 5,739

d) Bank Guarantee 1,380 1,380

e) Claims against the Company not acknowledged as debt 7,683 7,683

f )Letter of Credit pending shipment 222,749 -

Note: Future cash outflows in respect of (a), (b) and (c) above are determinable on receipt of judgments/decisions pending with various forums/authorities.

2. The tax year for the Company is the financial year ending March 31 and the provision for taxation has been calculated for the year ending December 31, 2011. The ultimate tax liability will be determined on the basis of the figures for the period April 1, 2011 to March 31, 2012. The net deferred tax has been provided in Profit and Loss Account as per Accounting Standard 22 - 'Accounting for Taxes on Income' as notified u/s 211(3C) of the Companies Act, 1956, as detailed:

3. The Company has installed Wind Turbine Generators (WTG) at Lamba, Dhank and Pransla in Gujarat. The Local Power Station of the Madhya Gujarat Vij Co. Ltd. (MGVCL) grants credit for the power units generated by the WTG. Accordingly, the amount of Power and fuel consumption disclosed is net of such credit given by MGVCL aggregating to Rs. 38,956 ('000) (Previous Year Rs. 35,688 ('000)).

4. The Company manufactures and sells ABS and SAN and does trading of Polycarbonates which belongs to the same product group i.e. "Highly Specialized Engineering Thermoplastics". The product has the same risks and returns, which are predominantly governed by market conditions, namely demand and supply position. The Company basically sells all the three products within the country and hence the segment based on geographical risk factors which may be present in different countries is not applicable. Thus, in the context of Accounting Standard 17 ''Segment Reporting'', as notified u/s 211(3C) of the Companies Act, 1956, there is only one identified reportable segment.

5. Disclosure of the relationship and transactions with the related parties as defined in Accounting Standard 18 'Related Party Disclosures", as notified u/s 211(3C) of the Companies Act, 1956, are as follows:

6. The Company's significant leasing arrangements are mainly in respect of residential and office premises. The aggregate lease rentals payable on these leasing arrangements are charged as rent under "Manufacturing and Other Expenses" in Schedule 14. These leasing arrangements are for a period not exceeding five years and are in most cases renewable by mutual consent, on mutually agreeable terms.

Notes forming part of the Financial Statements for the year ended December 31, 2011

7. The Company has undertaken necessary steps to comply with the Transfer Pricing regulations. The Management is of the opinion that the international transactions are at arm's length and hence the aforesaid legislation will not have any impact on the financial statements, particularly on the amount of tax expense and that of provision for taxation.

8. Disclosure requirements under Revised Accounting Standard 15 on "Employee Benefits", as notified u/s 211(3C) of the Companies Act, 1956 The Company has classified the various benefits provided to employees Us under The estimates of future salary increase, considered in actuarial valuation, takes account of inflation, seniority, promotion and other relevant factors, such as supply and demand in the employment market.

The expected rate of return on plan assets is based on market expectations at the beginning of the year. The rate of return on long- term government bonds is taken as reference for this purpose.

There is no significant change in the accounting estimates due to applicability of AS-15 (Revised) as the parameters considered in the year 2011 are the same as those considered in the year 2010.

9 The Actuarial liability for leave encashment and compensated absences as at year end is Rs. 9,315 ('000) (Previous Year Rs. 9,906 ('000)). Current year charge is included in Salaries, Wages and Bonus (Refer Schedule 13).

Represents estimates made for probable liabilities arising out of commercial transactions with parties and pending settlement of duties/levies with various government authorities. The information usually required by Accounting Standard 29 "Provisions, Contingent Liabilities and Contingent Assets" notified under section 211 (3C) of the Companies Act 1956, is not disclosed on the grounds that it can be expected to prejudice the interest of the Company. The timing of the outflow with regard to the said matters depends on exhaustion of remedies available to the Company under the Law and hence the Company is not able to reasonably ascertain the timing of the outflow.

10. Consequent upon the formation of 50:50 Global joint venture between INEOS and BASF, bringing together key styrenics business of the two joint venture partners worldwide effective October 1, 2011, M/s Styrolution (Jersey) Limited (Formarly known as INEOS ABS (Jersey) Limited), the acquirer, along with persons acting in concert has in terms of SEBI (SAST) Regulation1997, made a public offer to the shareholders of the company, vide offer document dated January 5, 2012. The cash offer price is Rs.606.81 (Rupees six hundred six and paise eighty one only) for one fully paid up equity share of Rs. 10 each to acquire maximum of 2,931,920 equity share representing balance 16.67% of the capital of the Company.


Dec 31, 2009

2009 2008 (Rupees 000) (Rupees 000)

1. CONTINGENT LIABILITIES NOT PROVIDED FOR IN RESPECT OF:

a) Income Tax 52,068 44,359

b) Excise Duty 1,757 1,969

c) Sales Tax 5,739 5,739

d) Bank Guarantee 1,380 1,000

e) Claims against the Company not acknowledged as debt 7,640 87,224

2. The Company manufactures and sells ABS and SAN and does trading of Polycarbonates which belongs to the same product group i.e. "Highly Specialized Engineering Thermoplastics". The product has the same risks and returns, which are predominantly governed by market conditions, namely demand and supply position. The Company basically sells all the three products within the country and hence the segment based on geographical risk factors which may be present in different countries is not applicable. Thus, in the context of Accounting Standard 17 "Segment Reporting", issued by the Institute of Chartered Accountants of India, there is only one identified reportable segment.

3. Disclosure of the relationship and transactions with the related parties as defined in Accounting Standard 18 "Related Party Disclosures", issued by the Institute of Chartered Accountants of India are as follows:

RELATED PARTY TRANSACTIONS

List of Related Parties with whom transactions have taken place during the year 2009

(as identified and certified by the management)

Holding Company

holds 83.33% of the equity share capital from March 13, 2008 onwards

Ineos ABS (Jersey) Limited

Channel Islands

Lanxess Deutschland Gmbh.

Germany

(upto March 13, 2008)

Other Related parties

Ineos ABS (USA) Corporation

Ohio (USA)

Ineos USA LLC

Texas (USA)

Ineos ABS (Spain) S.L.

Barcelona (Spain)

Shiva Pharmachem Private Limited

Vadodara (India)

Key Managerial Personnel

Managing Director

Mr. R.S. Agrawal

4. The Companys significant leasing arrangements are mainly in respect of residential and office premises. The aggregate lease rentals payable on these leasing arrangements are charged as rent under "Manufacturing and Other Expenses" in Schedule 15.

These leasing arrangements are for a period not exceeding five years and are in most cases renewable by mutual consent, on mutually agreeable terms.

5. The Company has undertaken necessary steps to comply with the Transfer Pricing regulations. The Management is of the opinion that the international transactions are at arms length and hence the aforesaid legislation will not have any impact on the financial statements, particularly on the amount of tax expense and that of provision for taxation.

6. Disclosure requirements under Revised Accounting Standard 15 on "Employee Benefits", issued by the Institute of Chartered Accountants of India

The Company has classified the various benefits provided to employees as under

i. Define contribution plans

a. Provident Fund

b. Superannuation Fund

c. State defined contribution plan

i. Employers contribution to Employees state insurance

The Company has no further obligation beyond making contribution to the respective fund

7. The Company uses foreign exchange currency hedges to manage its risks associated with foreign currency fluctuations relating to certain firm commitments and forecasted transactions. The Company does not use hedges for speculative purposes.

8. Refer Annexure for additional information to part IV of Schedule VI to the Act.

9. Figures for the Previous Year have been regrouped and reclassified wherever necessary, to conform to the current years classification.

 
Subscribe now to get personal finance updates in your inbox!