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Notes to Accounts of Insecticides (India) Ltd.

Mar 31, 2015

1. EARNING PER ShARE (EPS)

The Company reports basic & diluted earnings per equity share in accordance with Accounting Standard – 20 issued by The Institute of Chartered Accountants of India. The same is computed by dividing the net profit attributable to equity shareholders for the year, by the weighted average number of equity shares outstanding during the year. The earnings per share is calculated as under:

2. Employee BENEFITS

A. Retirement Benefits

(a) Retirement benefits in the form of Provident Fund / Family Pension Fund, which are defend contribution plans, are accounted for on accrual basis and charged to the Statement of Profit & Loss of the year.

(b) Retirement benefits in the form of Leave Encashment, which is defend benefit plan, is accounted for on the basis of an actuarial valuation done by applying the Projected Unit Credit Method.

(c) Retirement benefits in the form of Gratuity, which is define benefit plan, is determined and accounted for on the basis of an actuarial valuation done by applying the Projected Unit Credit Method.

(d) The actuarial Gains / Losses arising during the year are recognized in the Statement of Profit & Loss of the year.

The following tables summarize the components of net benefit expense recognized in the Statement of Profit & Loss and the funded status and amounts recognized in the Balance Sheet for the Gratuity Plan:

3. SEGMENT REPORTING

The Company is engaged in the business of Formulation & Manufacture of Pesticides. Segment Revenue, Segment Expenses, Segment Assets & Segment Liabilities have been identified to the segments on the basis of their relationship to the operating activities of the segment. The Revenue, Expenses, Assets & Liabilities which are not allocable to segments, have been included under "Unallocated Revenue, Expenses, Assets & Liabilities.

A. Primary Segment

Based on the following guiding principles given in the Accounting Standard-17 "Segment Reporting'' issued by The Institute of Chartered Accountants of India, the Company's primary segments are Formulated Pesticides consisting of Pesticides, Herbicides, Fungicides & Plant Growth Regulators and Technical Pesticides, which are the basic active ingredients used for making formulations so that they can be used directly by the Farmers and/or Consumers:

i) The nature of the products.

ii) The related risks and returns.

iii) The internal financial reporting system.

Revenue and Expenses have been accounted for based on the basis of their relationship to the operating activities of the segments.

Revenue and Expenses, which relates to the enterprise as a whole and are not allocable to the segments on a reasonable basis, have been included in under "Un-allocable Expenses & Revenue''.

Assets and Liabilities, which relates to the enterprise as a whole and are not allocable to the segments on a reasonable basis, have been included in under "Un-allocable Assets / Liabilities''.

4. CORPORATE SOCIAL Responsibility

As per Section 135 of the Companies Act, 2013, a CSR committee has been formed by the company. The company's policy covers current as well as proposed CSR activities to be undertaken by the company and examining their alignment with Schedule VII of the Act.

The company proposes to implement its CSR activities in various sectors which includes promoting Education, green initiatives, facilities for senior citizens, vocational & entrepreneurship skills, medical aid & healthcare, old age homes & women hostels, art and culture, destitute care and rehabilitation, rural development projects and others.

5. CONTINGENT LIABILITIES

(In Lacs)

S . Particular As at As at No. March 31, 2015 March 31, 2014

(a) Letter of Credits (FLC & ILC) 8825.99 13326.63

(b) Bank Guarantee 326.93 424.57

(c) Import Bills Accepted with Banks NIL 563.55

(d) Excise Matter with Appellate Authority, New Delhi NIL 75.67 (Period Covered – March, 2002 to October,2002)

(e) Excise Matter with Appellate Authority, New Delhi 186.11 186.11 (Period Covered – Sept.,2004 to August,2007)

(f) Sales Ta x Matters 473.55 464.04

(Except above no other contingent liabilities are outstanding as explained and Certified by the Management of the Company)

With respect to contingent liabilities reported at (e) and (f) above, the management has taken an opinion from the legal advisors / professionals engaged by them and is very much hopeful that the appeals will be decided in the favour of the company and as such, no provision thereof has been made.

6. Estimated amount of Contract remaining to be executed on capital accounts (net of advances) & not provided for NIL (Previous year H950 Lacs).

7. In the opinion of the Board of Directors of the Company, the current assets, loans and advances have the value at least equal to the figures stated in the Balance Sheet on realization in the ordinary course of business and provision for all determinable/known liabilities have been made in the Accounts when reliable estimates can be made of the amount of obligation.

8. The Balances shown under the head sundry debtors and Sundry Creditors are subject to confirmation and reconciliations. However, the Company has initiated the process of obtaining confirmations from sundry debtors & creditors.

9. The Company has valued inventories as required under AS-2 issued by The Institute of Chartered Accountants of India.

10. The total amount payable to Small Scale Industries (SSI) outstanding for more than 30 days as at March 31, 2015 is H1176.35 Lacs (Previous Year - H1312.75 Lacs).

11. The Company has not received any confirmation from suppliers regarding their status of registration under the Micro, Small & Medium Enterprises Development Act, 2006 which came into effect from October 2, 2006 and hence disclosure required under the said act have not been given.

12. The Previous Year Figures have been reworked , regrouped , rearranged, reclassified and / or re-casted wherever deemed necessary to make them comparable with those of the current year's figures.

13. All the common expenses incurred during the year in respect of Formulation (Products) units at Chopanki, Samba, Udhampur and Dahej have been allocated at the yearend in the proportion to sales (net) effected during the year. The Technical (Products) Units at Chopanki & Dahej are separate as well as independent units having no common activities if compared with above mentioned Formulation Units and as such, the expenses incurred by branches/ other units have not been allocated to the Technical unit except common expenses incurred by the Head office which are allocated in proportion to Sales (net) effected by all the units.

14. derivatives INSTRUMENTS & Unheeded FOREIGN Currency Exposure

a) The nominal amount of derivative contracts entered into by the company and outstanding as on March 31, 2015 amounts to H2607.90 Lacs (Previous Year – H3074.96 Lacs). The Category wise break-up is given below:-

b) Foreign currency exposure that are not hedged by derivatives instruments as on March 31, 2015 amounts to H6722.36 Lacs (Previous Year H15060.70 Lacs).

c) Mark to Market Losses provided by the company in earlier year, reversed during the year amounts to H17.96 Lacs i.e. M to M as on March 31, 2015 stands at H14.68 Lacs (Previous Year- H32.64 Lacs)


Mar 31, 2014

Rights, Preferences and Restrictions attached to Shares

The Company has only one class of equity shares having a par value of Rs. 10 per share. Each shareholder is eligible for one vote per share held. 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. In the event of liquidation of the company, the equity shareholders are eligible to receive the remaining assets of the company after distribution of all preferential amount, in proportion to their shareholding.

During the financial year ended on March 31, 2014, the amount of per share dividend recognized as distributions to equity shareholders was Rs. 3.00 (Previous Year Rs. 3.00)

Nature of Security and Terms of Repayment for Secured Borrowing

(i) Term Loans from banks for vehicles have been secured by hypothecation of vehicles.Further, vehicles loans have been guaranteed by the personal guarantee of the directors- Mr. Hari Chand Aggarwal and Mr. Rajesh Aggarwal. These loans are repayable in 36 monthly installments from the date of the loans along with interest rates ranging between 10.50% to 12% per annum.

(ii) The Foreign Currency outstanding loan amounting to Rs. 1128.37 Lacs (Previous Year - Rs.1401.31 Lacs) has been secured by the first charge over Plant and Machineries situated at CH-21, GIDC Industrial Estate, Dahej Plant (Gujarat). Further, the loan has been guaranteed by the personal guarantee of the directors- Mr. Hari Chand Aggarwal and Mr. Rajesh Aggarwal. The outstanding loan is repayable in 14 quarterly instalments. The interest is to paid on quarterly basis at Libor plus 2.5%. Further, the company has entered into the derivative contract for hedging of the currency swaps and interest rate swaps.

(iii) The Foreign Currency outstanding loan amounting to Rs. 2059.75 Lacs (Previous Year - Rs. 2545.85 Lacs) has been secured by the exclusive first charge over assets being financed including Land & Building and Plant & Machineries situated at CH-21, GIDC Industrial Estate, Dahej Plant (Gujarat). Further , the loan has been guaranteed by the personal guarantee of the directors- Mr. Hari Chand Aggarwal and Mr. Rajesh Aggarwal. The outstanding loan is repayable in 15 quarterly instalments . The interest is to paid on quarterly basis at Libor plus 3.5%. Further, the company has entered into the derivative contract for hedging of interest rate swaps.

(iv) The Foreign Currency outstanding loan amounting to Rs. 1205.08 Lacs (Previous Year -NIL) has been secured by the exclusive first charge over assets being financed including Land & Building and Plant & Machineries situated at CH-21, GIDC Industrial Estate, Dahej Plant (Gujarat). Further , the loan has been guaranteed by the personal guarantee of the directors- Mr. Hari Chand Aggarwal and Mr. Rajesh Aggarwal. The outstanding loan is repayable in 16 quarterly instalments. The interest is to paid on quarterly basis at Libor plus 3.00%. Further, the company has entered into the derivative contract for hedging of the currency swaps and interest rate swaps.

SHORT TERM BORROWINGS

Working Capital Loans (Demand Loan,Cash Credit & Buyers Credits) from banks are secured by first pari passu charge over present and future stock & book debts and moveable fixed assets of the company . These loans are additionally secured by equitable mortgage on pari passu basis over Lands & Buildings of the company and residential property of the director at Pitampura Delhi and negative lien on company''s Samba Unit (J&K) Udhampur Unit (J&K) and office at Azadpur (Delhi). Further, these loans have been guaranteed by the personal guarantee of the directors -Mr. Hari Chand Aggarwal and Mr. Rajesh Aggarwal. Further, the company has entered into the derivative contract for hedging of buyer''s credit amounting to Rs.621.94 Lacs during the year (P.Y. - Rs.966.88 Lacs).

EMPLOYEE BENEFITS

A. RETIREMENT BENEFITS

(a) Retirement Benefits in the form of Provident Fund / Family Pension Fund, which are defined contribution plans, are accounted for on accrual basis and charged to the Statement of Profit & Loss of the year.

(b) Retirement Benefits in the form of Leave Encashment, which is defined benefit plan, is accounted for on cash basis every year and charged to the Statement of Profit & Loss of the year.

(c) Retirement Benefits in the form of Gratuity, which is define benefit plan, is determined and accounted for on the basis of an Actuarial Valuation done by applying the Projected Unit Credit Method.

(d) The Actuarial Gains / Losses arising during the year are recognized in the Statement of Profit & Loss of the year.

SEGMENT REPORTING

The Company is engaged in the business of Formulation & Manufacture of Pesticides. Segment Revenue, Segment Expenses, Segment Assets & Segment Liabilities have been identified to the segments on the basis of their relationship to the operating activities of the segment. The Revenue, Expenses, Assets & Liabilities which are not allocable to Segments, have been included under "Unallocated Revenue, Expenses, Assets & Liabilities.

PRIMARY SEGMENT

Based on the following guiding principles given in the Accounting Standard-17 "Segment Reporting'''' issued by The Institute of Chartered Accountants of India, the Company''s primary segments are Formulated Pesticides consisting of Pesticides, Herbicides, Fungicides & Plant Growth Regulators and Technical Pesticides, which are the basic active ingredients used for making formulations so that they can be used directly by the Farmers and/or Consumers:

i) The Nature of the Products.

ii) The Related Risks and Returns.

iii) The Internal Financial Reporting System.

Revenue and Expenses have been accounted for based on the basis of their relationship to the operating activities of the Segments.

Revenue and Expenses, which relates to the enterprise as a whole and are not allocable to the segments on a reasonable basis, have been included in under "Un-allocable Expenses & Revenue".

Assets and Liabilities, which relates to the enterprise as a whole and are not allocable to the segments on a reasonable basis, have been included in under "Un-allocable Assets / Liabilities''''.

SECONDARY SEGMENT

The Company caters mainly to the need of the Indian Market. The Export Turnover during the year is less than 10% of the Total Turnover; as such there is no reportable Geographical Segment.

CONTINGENT LIABILITIES (Rs. In Lacs)

S. Particulars As at As at No. March 31, 2014 March 31, 2013

(a) Letter of Credits (FLC & ILC) 13326.63 5185.47

(b) Bank Guarantee 424.57 209.75

(c) Import Bills Accepted with Banks 563.55 294.25

(d) Excise Matter with Appellate Authority, New Delhi (Period Covered - March, 2002 to October,2002) 75.67 75.67

(e) Excise Matter with Appellate Authority, New Delhi (Period Covered - September 2004 to August,2007) 161.72 161.72

(f) Sales Tax Matter with Appellate Authorities at Asansol (West Bengal) 5.70 5.70

(g) Sales Tax Matter with Appellate Authorities at Nagpur 15.93 NIL

(h) Sales Tax Matter with Sales Tax Tribunal, Jammu (J & K) (Period covered 2009- 2010) 144.22 144.22

(i) Sales Tax Matter with Dy. Comm. of Sales Tax, Jammu(J & K) (Period covered 2010-2011) 415.77 -

(J) Sales Tax Matter with Appellate Authorities (West Bengal) (Period Covered 2010-11) 12.22 -

(Except above no other contingent liabilities are outstanding as explained and certified by the Management of the Company)

With respect to Contingent Liabilities reported at (d) to (j) above, the Management has taken an opinion from the Legal Advisors / Professionals engaged by them and is very much hopeful that the appeals will be decided in the favour of the Company and as such, no provision thereof has been made.

* Estimated amount of contract remaining to be executed on capital accounts (net of advances) & not provided for Rs. 950 Lacs (Previous year Rs. NIL)

* In the opinion of the Board of Directors of the Company, the Current Assets, Loans and Advances have the value at least equal to the figures stated in the Balance Sheet on realization in the ordinary course of business and provision for all determinable/known liabilities have been made in the Accounts when reliable estimates can be made of the amount of obligation.

* The Balances shown under the head Sundry Debtors and Sundry Creditors are subject to confirmation and reconciliations. However, the Company has initiated the process of obtaining confirmations from Sundry Debtors & Creditors.

* The Company has valued inventories as required under AS-2 issued by The Institute of Chartered Accountants of India.

* The total amount payable to Small Scale Industries (SSI) outstanding for more than 30 days as at March 31, 2014 is Rs. 1312.75 Lacs (Previous Year - Rs. 856.70 Lacs).

* The Company has not received any confirmation from suppliers regarding their status of registration under the Micro, Small & Medium Enterprises Development Act, 2006 which came into effect from October 2, 2006 and hence disclosure required under the said act have not been given.

* The Previous Year Figures have been reworked , regrouped , rearranged, reclassified and / or re-casted wherever deemed necessary to make them comparable with those of the current year''s figures.

* All the common expenses incurred during the year in respect of Formulation (Products) Units at Chopanki, Samba, Udhampur and Dahej have been allocated at the year end in the proportion to sales (net) effected during the year. The Technical (Products) Units at Chopanki & Dahej are separate as well as independent units having no common activities if compared with above mentioned Formulation Units and as such, the expenses incurred by Branches/ Other Units have not been allocated to the Technical Unit except common expenses incurred by the Head Office which are allocated in proportion to Sales (Net) effected by all the Units.

* The Ministry of Corporate Affairs, Government of India, vide General Circular No. 08/2014 dated April 4, 2014 has granted a general exemption from compliance with Section 212 of the Companies Act, 1956 subject to fulfillment of conditions stipulated in the circular. The Company has satisfied the conditions stipulated in the circular and hence is entitled to the exemption.


Mar 31, 2013

1. CORPORATE INFORMATION

Insecticides (India) Limited (The Company) is a public company domiciled in India and incorporated under the provisions of the Companies Act, 1956. Its shares are listed on two Stock Exchanges (i.e. Bombay Stock Exchange Limited and National Stock Exchange Limited) in India. The Company is engaged in the manufacturing activities of Agro Chemicals, Pesticides and Technical Products for agriculture purposes. The Company caters to both domestic and international markets.

2. EARNING PER SHARE (EPS)

The Company reports basic & diluted earnings per equity share in accordance with Accounting Standard – 20 issued by The Institute of Chartered Accountants of India. The same is computed by dividing the net profit attributable to equity shareholders for the year, by the weighted average number of equity shares outstanding during the year. The earning per share is calculated as under:

3. EMPLOYEE BENEFITS

A. RETIREMENT BENEFITS :

(a) Retirement benefits in the form of Provident Fund / Family Pension Fund, which are defined contribution plans, are accounted for on accrual basis and charged to the Statement of Profit & Loss of the year.

(b) Retirement benefits in the form of Leave Encashment, which is defined benefit plan, is accounted for on cash basis every year and charged to the Statement of Profit & Loss of the year.

(c) Retirement benefits in the form of Gratuity, which is define benefit plan, is determined and accounted for on the basis an actuarial valuation done by applying the Projected Unit Credit Method.

(d) The Actuarial Gains / Losses arising during the year are recognized in the Statement of Profit & Loss of the year.

The following tables summarize the components of net benefit expense recognized in the Statement of Profit & Loss and the funded status and amounts recognized in the Balance Sheet for the Gratuity Plan:

Investment Details of Plan Assets: 100% with Life Insurance Corporation of India

B. Short Term Employees Benefits are recognized as an expense in the Statement Profit & Loss of year in which the related service is rendered.

4. SEGMENT REPORTING

The Company is engaged in the business of Formulation & Manufacture of Pesticides. Segment Revenue, Segment Expenses, Segment Assets & Segment Liabilities have been identified to the segments on the basis of their relationship to the operating activities of the segment. The Revenue, Expenses, Assets & Liabilities which are not allocable to segments, have been included under "Unallocated Revenue, Expenses, Assets & Liabilities.

A. PRIMARY SEGMENT

Based on the following guiding principles given in the Accounting Standard–17 "Segment Reporting’’ issued by The Institute of Chartered Accountants of India, the Company’s primary segments are Formulated Pesticides consisting of Pesticides, Herbicides, Fungicides & Plant Growth Regulators and Technical Pesticides, which are the basic active ingredients used for making formulations so that they can be used directly by the Farmers and/or Consumers:

i) The nature of the products.

ii) The related risks and returns.

iii) The internal financial reporting system.

Revenue and Expenses have been accounted for based on the basis of their relationship to the operating activities of the segments.

Revenue and Expenses, which relates to the enterprise as a whole and are not allocable to the segments on a reasonable basis, have been included in under "Un–allocable Expenses & Revenue’’.

Assets and Liabilities, which relates to the enterprise as a whole and are not allocable to the segments on a reasonable basis, have been included in under "Un–allocable Assets / Liabilities’’.

B. SECONDARY SEGMENT

The Company caters mainly to the need of the Indian Market. The Export Turnover during the year is less than 10 % of the Total Turnover; as such there is no reportable Geographical Segment.

5. RELATED PARTY DISCLOSURES

In compliance to AS 18 issued by The Institute of Chartered Accountants of India, the disclosure of transactions with Related Parties as defined in Accounting Standard (Excluding Reimbursements) are given herein below:

(I) RELATED PARTIES

A. Key Management Personnel & Directors :

1. Mr. Hari Chand Aggarwal

2. Mr. Rajesh Aggarwal

3. Mr. Sanjeev Bansal (till April 30, 2013)

4. Mrs. Nikunj Aggarwal (from May 2, 2013)

5. Mr. Navneet Goel

6. Mr. Rajender Pershad Gupta (till Sep. 25, 2012)

7. Mr. Vrijesh Kumar Gupta (from Sep. 25, 2012)

8. Mr. Gopal Chandra Agarwal

9. Mr. Navin Shah 10. Mr. Anil Kumar Singh

B. Other related parties where common control exists and with whom the company had transactions during the year:

1. Paras Agro Industries Associate Firm

2. ISEC Organics Limited Associate Company

3. Evergreen Mineral Industries Associate Firm

(Except above, there is no other related persons / parties with whom transaction took place during the year as confirmed and certified by the Management of the Company)

6. Remittance in Foreign Currency on account of Dividend : NIL

7. Estimated amount of Contract remaining to be executed on Capital Accounts (Net of Advances) & not provided for Rs. Nil (Previous Year Rs. 964 Lacs).

8. In the opinion of the Board of Directors of the Company, the Current Assets, Loans and Advances have the value at least equal to the figures stated in the Balance Sheet on realization in the ordinary course of business and provision for all determinable/known liabilities have been made in the accounts when reliable estimates can be made of the amount of obligation.

9. The Balances shown under the head Sundry Debtors and Sundry Creditors are subject to confirmation and reconciliations. However, the Company has initiated the process of obtaining confirmations from Sundry Debtors & Creditors.

10. The Company has valued inventories as required under AS-2 issued by The Institute of Chartered Accountants of India except the taxes / duties recoverable has been included in the valuation of stocks as per the past practice.

11. The total amount payable to Small Scale Industries (SSI) outstanding for more than 30 days as at March 31, 2013 is Rs. 856.70 Lacs (Previous Year- Rs. 1276.48 Lacs).

12. The Company has not received any confirmation from suppliers regarding their status of registration under the Micro, Small & Medium Enterprises Development Act, 2006 which came into effect from October 2, 2006 and hence disclosure required under the said act have not been given.

13. The Previous Year Figures have been reworked , regrouped , rearranged, reclassified and / or re-casted wherever deemed necessary to make them comparable with those of the current year''s figures.

14. All the common expenses incurred during the year in respect of Formulation (Products) units at Chopanki, Samba, Udhampur and Dahej have been allocated at the year end in the proportion to Sales (Net) effected during the year. The Technical (Products) Units at Chopanki & Dahej are separate as well as independent units having no common activities if compared with above mentioned Formulation Units and as such, the expenses incurred by branches/ other units have not been allocated to the Technical Unit except common expenses incurred by the Head Office which are allocated in proportion to Sales (Net) effected by all the Units.

15. DERIVATIVES INSTRUMENTS & UNHEDGED FOREIGN CURRENCY EXPOSURE

(a) The nominal amount of derivative contracts entered into by the company and outstanding as on March 31, 2013 amount to Rs.1431.80 Lacs (Previous Year Rs. 1559.95 Lacs). The Category wise break-up is given below:-

(b) Foreign currency exposure that are not hedged by derivatives instruments as on March 31, 2013 amount to Rs. 9474.54 Lacs (Previous Year Rs.10779.98 Lacs).

(c) Mark to Market Losses provided for by the company during the year amount to Rs. 0.92 Lacs (Previous Year Rs. 56.12 Lacs).


Mar 31, 2012

1. CORPORATE INFORMATION

Insecticides (India) Limited (The Company) is a public company domiciled in India and incorporated under the provisions of the Companies Act, 1956. Its shares are listed on two Stock Exchanges (i.e. Bombay Stock Exchange Limited and National Stock Exchange Limited) in India. The Company is engaged in the manufacturing activities of Agro Chemicals, Pesticides and Technical Products for agriculture purposes. The Company caters to both domestic and international markets.

1(a) Rights, Preferences and Restrictions attached to Shares

The Company has only one class of equity shares having a par value of Rs.10 per share. Each shareholder is eligible for one vote per share held. 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. In the event of liquidation of the company, the equity shareholders are eligible to receive the remaining assets of the company after distribution of all preferential amount, in proportion to their shareholding.

During the financial year ended on March 31, 2012, the amount of per share dividend recognized as distributions to equity shareholders was Rs.2.50 (Previous Year Rs.2.50)

(a) Nature of Security and terms of repayment for secured borrowing

(i) Term Loans from banks for vehicles have been secured by hypothecation of vehicles. Further, vehicles loans have been guaranteed by the personal guarantee of the directors- Mr. Hari Chand Aggarwal and Mr. Rajesh Aggarwal. These loans are repayable in 36 monthly installments from the date of the loans along with interest rates ranging between 12 to 14% per annum.

(ii) Term Loan from banks have been secured by exclusive charge over Plant and Machineries situated at Dahej Plant (Gujarat). Further, term loans have been guaranteed by the personal guarantee of the directors- Mr. Hari Chand Aggarwal and Mr. Rajesh Aggarwal. The loan are repayable in 8 quarterly installments starting from September 30, 2010 along with interest rates approx at 12% per annum.

(iii) The Foreign Currency Loan amounting to Rs.1533.72 Lacs (Previous Year -Nil) has been secured by the first charge over Plant and Machineries situated at CH-21, GIDC Industrial Estate, Dahej Plant (Gujarat). Further, the loan has been guaranteed by the personal guarantee of the directors - Mr. Hari Chand Aggarwal and Mr. Rajesh Aggarwal. The loan is repayable in 16 quarterly installments starting from November 02, 2012. The interest is to paid on quarterly basis at Libor plus 2.5%. Further, the company has entered into the derivative contract for hedging of the currency swaps and interest rate swaps.

(iv) The Foreign Currency Loan amounting to Rs.2569.73 Lacs (Previous Year -Nil) has been secured by the exclusive first charge over assets being financed including Land & Building and Plant & Machineries situated at CH-21, GIDC Industrial Estate, Dahej Plant (Gujarat). Further , the loan has been guaranteed by the personal guarantee of the directors - Mr. Hari Chand Aggarwal and Mr. Rajesh Aggarwal. The loan is repayable in 16 quarterly installments starting from March 29, 2013. The interest is to paid on quarterly basis at Libor plus 3.5%. Further, the Company has entered into the derivative contract for hedging of interest rate swaps.

(b) Terms of repayment for unsecured borrowing

The loan from related parties is repayable after 24 months from the date of loan and interest is payable on yearly basis at 12% per annum.

Working Capital Loans (Demand Loan, Cash Credit & Buyers Credits) from banks are secured by first pari passu charge over present and future stock & book debts and moveable fixed assets of the Company.

These Loans are additionally secured by equitable mortgage on pari passu basis over Lands & Buildings situated at Chopanki Unit (Rajasthan), Samba Unit (J&K), Udhampur Unit (J&K) and residential property in the name of director at Pitampura(Delhi) and negative lien on Company's office at Azadpur (Delhi). Further, these loans have been guaranteed by the personal guarantee of the directors -Mr. Hari Chand Aggarwal and Mr. Rajesh Aggarwal.

2. EARNING PER SHARE (EPS)

The Company reports basic & diluted earnings per equity share in accordance with Accounting Standard- 20 issued by The Institute of Chartered Accountants of India. The same is computed by dividing the net profit attributable to equity shareholders for the year, by the weighted average number of equity shares outstanding during the year. The Earning Per Share is calculated as under:

3. EMPLOYEE BENEFITS

A. RETIREMENT BENEFITS

(a) Retirement Benefits in the form of Provident Fund / Family Pension Fund, which are defined contribution plans, are accounted for on accrual basis and charged to the Statement of Profit & Loss of the year.

(b) Retirement Benefits in the form of Leave Encashment, which is defined benefit plan, is accounted for on cash basis every year and charged to the Statement of Profit & Loss of the year.

(c) Retirement Benefits in the form of Gratuity, which is define benefit plan, is determined and accounted for on the basis an actuarial valuation done by applying the Projected Unit Credit Method.

(d) The Actuarial Gains/ Losses arising during the year are recognized in the Statement of Profit & Loss of the year.

The following tables summarize the components of net benefit expense recognized in the Statement of Profit & Loss and the funded status and amounts recognized in the Balance Sheet for the Gratuity Plan:

Investment Details of Plan Assets: 100% with Life Insurance Corporation of India

B. Short Term Employees Benefits are recognized as an expense in the Statement of Profit & Loss for the year in which the related service is rendered.

4. SEGMENT REPORTING

The Company is engaged in the business of Formulation & Manufacture of Pesticides. Segment Revenue, Segment Expenses, Segment Assets & Segment Liabilities have been identified to the segments on the basis of their relationship to the operating activities of the segment. The Revenue, Expenses, Assets & Liabilities which are not allocable to segments, have been included under "Unallocated Revenue, Expenses, Assets & Liabilities"

A. PRIMARY SEGMENT

Based on the following guiding principles given in the Accounting Standard-17 "Segment Reporting'' issued by The Institute of Chartered Accountants of India, the Company's primary segments are Formulated Pesticides consisting of Pesticides, Herbicides, Fungicides & Plant Growth Regulators and Technical Pesticides, which are the basic active ingredients used for making formulations so that they can be used directly by the Farmers and/or Consumers:

i) The Nature of the Products.

ii) The Related Risks and Returns.

iii) The Internal Financial Reporting System.

Revenue and Expenses have been accounted for based on the basis of their relationship to the operating activities of the segments.

Revenue and Expenses, which relates to the enterprise as a whole and are not allocable to the segments on a reasonable basis, have been included in under "Un-allocable Expenses'.

Assets and Liabilities, which relates to the enterprise as a whole and are not allocable to the segments on a reasonable basis, have been included in under "Un-allocable Assets / Liabilities''.

B. SECONDARY SEGMENT

The Company caters mainly to the need of the Indian Market. The Export Turnover during the year is less than 10 % of the total turnover; as such there is no reportable Geographical Segment.

5. RELATED PARTY DISCLOSURES

In compliance to AS 18 issued by The Institute of Chartered Accountants of India, the Disclosure of transactions with Related Parties as defined in Accounting Standard (Excluding reimbursements) are given herein below:

(i) RELATED PARTIES

A. Key Management Personnel & Directors

1. Mr. Hari Chand Aggarwal

2. Mr. Rajesh Aggarwal

3. Mr. Sanjeev Bansal

4. Mr. Navneet Goel

5. Mr. Gopal Chandra Agarwal

6. Mr. Rajender Pershad Gupta

7. Mr. Navin Shah

8. Mr. Anil Kumar Singh

B. Other related parties where common control exists and with whom the company had transactions during the year

1. Paras Agro Industries Associate Firm

2. ISEC Organics Ltd. Associate Company

3. Evergreen Mineral Industries Associate Firm

(Except above, there is no other related persons/ parties with whom transaction took place during the year as confirmed and certified by the Management of the Company)

6. The Company has suffered a loss of Rs.37.75 Lacs due to loss of inventory and fixed assets burnt in fire occurred in Dahej Plant on 19-03-2012. This loss is fully recoverable from the insurer and the company has already lodged the claim with the insurance company. Due to small incidence of fire, there is no disturbance in the operations of the company. The insurance claim has not been settled till date and the company has shown said loss recoverable from the insurance company in financial statement for year under consideration. The loss if any due to any deduction / disallowance of claim by the insurer shall be adjusted in the financial statement during year in which claim will be finally settled.

7. CONTINGENT LIABILITIES

(Rs. In Lacs)

S. Particulars As at As at 31.03.2012 31.03.2011

(a) Letter of Credits 4681.03 2871.88

(b) Bank Guarantee 197.35 NIL

(c) Import Bills Accepted with Banks 393.43 NIL

(d) Excise Matter with Appellate Authority, New Delhi 75.67 75.67 (Period Covered - March, 2002 to October, 2002)

(e) Excise Matter with Appellate Authority, New Delhi 161.72 161.72 (Period Covered - September, 2004 to August, 2007)

(f) Sales Tax Matter with Appellate Authorities at Asansol 5.70 NIL (West Bengal)

(g) Sales Tax Matter with Appellate Authorities at Ghaziabad 9.64 NIL (Uttar Pradesh)

(Except above no other contingent liabilities are outstanding as explained and certified by the Management of the Company)

With respect to Contingent Liabilities reported at (d) to (g) above, the management has taken an opinion from the legal advisors/ professional engaged by them and is very much hopeful that the appeals will be decided in the favour of the company and as such, no provision thereof has been made.

8. Estimated amount of contract remaining to be executed on capital accounts (net of advances) & not provided for Rs.5703465 Lacs (Previous year Rs.964 Lacs)

9. In the opinion of the Board of Directors of the Company, the current assets, loans and advances have the value at least equal to the figures stated in the Balance Sheet on realization in the ordinary course of business and provision for all determinable/known liabilities have been made in the Accounts when reliable estimates can be made of the amount of obligation.

10. The Balances shown under the head Sundry Debtors and Sundry Creditors are subject to confirmation and reconciliations. However, the Company has initiated the process of obtaining confirmations from Sundry Debtors & Creditors.

11. The Company has valued inventories as required under AS-2 issued by The Institute of Chartered Accountants of India except the taxes/ duties recoverable has been included in the valuation of stocks as per the past practice.

12. The total amount payable to Small Scale Industries (SSI) outstanding for more than 30 days as at March 31, 2012 is Rs.1276.48 Lacs ( Previous Year- Rs.188.75 Lacs).

13. The Company has not received any confirmation from suppliers regarding their status of registration under the Micro, Small & Medium Enterprises Development Act, 2006 which came into effect from October 02, 2006 and hence disclosure required under the said act have not been given.

14. The Previous Year Figures have been reworked , regrouped , rearranged, reclassified and / or re- casted wherever deemed necessary to make them comparable with those of the Current Year's Figures.

15. All the common expenses incurred during the year in respect of Formulation (Products) Units at Chopanki, Samba, Udhampur and Dahej have been allocated at the year end in the proportion to Sales (Net) effected during the year. The Technical (Products) Unit at Chopanki is a separate as well as independent unit having no common activities if compared with above mentioned Formulation Units and as such the expenses incurred by branches/ other units have not been allocated to the Technical Unit except common expenses incurred by the Head Office which are allocated in proportion to Sales (Net) effected by all the Units.

(b) Foreign Currency exposure that are not hedged by derivatives instruments as on March 31, 2012 amount to Rs.10779.98 Lacs (Previous Year Rs.3581.40 Lacs)

(c) Mark to Market Losses provided for by the company as on March 31, 2012 amount to Rs.56.12 lacs (Previous Year-Nil)


Mar 31, 2010

1. CONTINGENT LIABILITIES/ ASSETS

(a) Letter of credits- Rs.2827.41 Lacs (Previous year - Rs.3126.18 Lacs)

(b) Excise matter with Appellate Authority, New Delhi - Rs.75.67 Lacs (Previous year - Rs.75.67 Lacs) (Period Covered - March 2002 to October 2002)

(c) Bank Guarantee- Rs.18.46 Lacs (Previous year - Rs.21.26 Lacs).

(d) Excise Matter with Appellate Authority, New Delhi - Rs.161.72 Lacs

(Previous Year - Rs.161.72 Lacs) (Period Covered September 2004 to August 2007)

(e) Service Tax Matter with Appellate Authority, Gurgaon - for the period from April 2006 to September 2006 - Rs.41.94 (Previous Year - Rs. NIL)

(Except above no contingent liabilities are outstanding as explained and certified by the Management of the Company) With respect to contingent liabilities reported at 1(b), (d) & (e) above, the management has taken an opinion from the legal advisors / professional engaged by them and is very much hopeful that the appeals will be decided in the favour of the Company and as such, no provision thereof has been made.

2. The Previous Year Figures have been reworked , regrouped , rearranged, reclassified and / or recasted wherever deemed neces- sary to make them comparable with those of the current years figures.

3. In the opinion of the Board of Directors of the Company, the current assets, loans and advances have the value at least equal to the figures stated in the Balance Sheet on realization in the ordinary course of business and provision for all determinable/ known liabilities have been made in the Accounts when reliable estimates can be made of the amount of obligation.

4. The Company has valued inventories as required under AS-2 issued by The Institute of Chartered Accountants of India except the taxes / duties recoverable has been included in the valuation of stocks.

5. The prior period expenses debited to profit & loss account during the year amounting to Rs.2.71 Lacs (Previous year Rs.1.84 Lacs)

6. The total amount payable to Small Scale Industries (SSI) outstanding for more than 30 days as at March 31, 2010 is Rs.256.36 Lacs ( Previous Year- Rs.300.72 Lacs).

7. The Company has not received any confirmation from suppliers regarding their status of registration under the Micro, Small & Medium Enterprises Development Act, 2006 which came into effect from October 2, 2006 and hence disclosure required under the said act have not been given.

8. Estimated amount of Contract remaining to be executed on capital accounts (net of advances) and not provided for Rs.1132 Lacs (Previous year Rs.1400 Lacs ).

9. In compliance to AS 18 issued by The Institute of Chartered Accountants of India, the Disclosure of transactions with Related Parties as defined in Accounting Standard (Excluding Reimbursements) are given herein below:

10. Balances of Sundry Debtors and Sundry Creditors are subject to reconciliations.

11. EARNING PER SHARE: The Company reports basic & diluted earnings per equity share in accordance with Accounting Standard - 20 issued by The Institute of Chartered Accountants of India. The same is computed by dividing the net profit attributable to equity shareholders for the year, by the weighted average number of equity shares outstanding during the year. The Earning Per Share is calculated as

12. Remittance in Foreign Currency on account of Dividend : NIL

13. The scheme of amalgamation ("Scheme") for merging the wholly owned subsidiary company M/s Advance Crop Solutions Ltd. (ACSL) with the Company under Section 391 to 394 of the Companies Act, 1956 sanctioned by The Honble Delhi High Court, New Delhi vide their order dated January 19, 2010 has come into effect on February 28, 2010 from the appointed date of April 1, 2009. On the scheme becoming effective, Advance Crop Solutions Ltd. stands dissolved without winding up.

Pursuant to the scheme:

The amalgamation of erstwhile ACSL with the Company has become accounted for under the "Pooling of Interest Method" in the manner specified in the Scheme and Complies with the Accounting Standard notified u/s 211(3C) of the Companies Act, 1956 and the following balances as at April 1, 2009 of erstwhile ACSL have been adjusted with the profit & loss account forming part of reserves of the Company:

The transactions including Income & Expenses for the period from April 1, 2009 to February 28, 2010 when the business was being run and managed in trust by erstwhile ACSL have also been incorporated in these accounts which do not have any material impact on the profit for the year and net assets at the balance sheet date.

Moreover, as per order of Scheme of Amalgamation sanctioned by The Honble Delhi High Court, New Delhi, the Goodwill has been set off with Share Premium Account.

14. EMPLOYEE BENEFITS

A. RETIREMENT BENEFITS :

A. Retirement benefits in the form of Provident Fund/Family Pension Fund, which are defined contribution plans, are accounted on accrual basis and charged to the Profit & Loss Account of the year.

B. Retirement benefits in the form of Leave Encashment, which is defined benefit plan, is accounted for on cash basis every year and charge

 
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