Mar 31, 2010
1. Secured Loans
Term Loans availed from M/s. Rabo India Finance Limited, LIC of India, State Bank of Mysore, UCO Bank, IFCI, Catholic Syrian Bank and PNB International Limited are fully secured by the first paripassu charge on Fixed Assets of the companyÃs manufacturing units (Unit-I Located at Bidar, Karnataka, Unit-II Located at Cheriyal Village, Andhra Pradesh and Unit-III Located at Gaddapotharam Village, Andhra Pradesh) and Second charge on the Current assets of the company and also guaranteed by the Chairman and Managing Director of the Company.
Other Corporate and Short Term Loans are secured by the Specific Charges, Second Paripassu and second charge on the Fixed Assets and Current Assets of the company and also guaranteed by the Chairman and Managing Director of the Company.
Working Capital Limits:
Working Capital Limits are secured by the First Paripassu Charge on the Current Assets and Second Charge on the Fixed Assets of the Company and also guaranteed by the Chairman and Managing Director of the Company.
2. Sales Tax deferment amounting to Rs.702.54 Lakhs has been transferred to the company on account of acquisition of manufacturing unit from M/s. Aurobindo Pharma Limited.
3. Debtors, Creditors, loans, advances and deposits are subject to confirmation and reconciliation.
4. Borrowing Cost : (AS 16) The amount of borrowing cost capitalized during the year is Rs.2142.90 Lakhs and the borrowing cost charged to revenue expenses is Rs.2509.70 Lakhs.
5. Segment Reporting (AS 17)
a. The Company is primarily engaged in the business of manufacturing of Drug intermediates, Specialty and Fine Chemicals. Since inherently these activities are integrated and governed by the same set of risks and returns and operating in the same economic environment, these have been grouped as a single segment in the financial statements. The said treatment is in accordance with the Accounting Standard (AS) Ã 17 on " Segment Reporting ".
a. Geographical Segment has been identified as Secondary Segment based on Segment revenue.
6. a. Related party Disclosures : (AS 18)
Name of the related Company : Sven Genetech Limited
Description of the relationship : Sven Genetech Limited is a subsidiary
company of JUPITER BIOSCIENCE LIMITED. The directors of Jupiter Bioscience Limited are the Directors of SVEN GENETECH LIMITED and no managerial remuneration is paid to the directors of Sven Genetech Limited.
Any other elements of the related : There are no inter company business party transactions transactions with SVEN GENETECH LTD.
The amounts or appropriate : The Company is the holding company of Proportions of outstanding items SVEN GENETECH LTD., and invested an
pertaining to related parties at the amount of Rs.14341.72 Lakhs in the form of
Balance Sheet date. Share Capital/Share Applications money.
Provisions for doubtful debts due : NIL from such parties at that date and amounts written off or written back in the period in respect of debts due from or to related parties.
7.b. Related party Disclosures : (AS 18)
Name of the related Company : Jupiter Bioscience Inc. Description of the relationship : Jupiter Bioscience Inc. is a 100% subsidiary
company of JUPITER BIOSCIENCE LIMITED.
The directors of Jupiter Bioscience Limited are the Directors of Jupiter Bioscience Inc. and no managerial remuneration is paid to the directors of the Company.
Any other elements of the related : There are no inter company business party transactions transactions with Jupiter Bioscience Inc.
The amounts or appropriate : The Company is the holding company of Proportions of outstanding items Jupiter Bioscience Inc. and invested an amount
pertaining to related parties at the of Rs.3342.07 Lakhs in the form of Share
Balance Sheet date Capital /Share Applications money.
Provisions for doubtful debts due : NIL. from such parties at that date and amounts written off or written back in the period in respect of debts due from or to related parties.
8.Leases (AS-19) : During the year the Company has not taken or
given any asset on lease.
9. Earning Per Share (AS-20) :
a. Net Profit after Tax : Rs.3314.23 Lakhs
b. Equity Shares of Rs.10/- Each : 1,61,33,470 Shares
c. Basic and Diluted Earnings
Per Share (a/b) in Rupees : 20.54
10. Consequent to the issuance of Accounting Standard Ã 22 Accounting for Taxes on Income by the ICAI which is mandatory in nature, the Company has recognized Deferred Taxes which result from the timing difference between the Book Profits and Tax profits consequently, as required by the Standard the Company has recognized the deferred tax balance that would have accumulated prior to adopting the standard, if the standard had been in effect from the beginning.
The Deferred Tax Liability for the Current Year amounting to Rs.413.94 Lakhs is shown in Profit and Loss Account under Provision for Deferred Tax.
11. The investment in Sven Genetech Limited and Jupiter Bioscience Inc. represents Share Capital/ Share Application Money Deposit.
12. According to the information and explanations given to me, Share Application Money consists of deposit against share warrants of Mr. Venkat R. Kalavakolanu, Chairman & Managing Director of the Company and preferential private placement of equity shares to an investor.
a. Defined contribution plans The Company makes Provident Fund contribution to defined contribution retirement plans for qualifying employees. Under the schemes, the Company is required to contribute a specified percentage of the payroll costs to fund the benefits. The contributions payable to these plans by the Company are at rates specified in the rules of the schemes.
b. The Company makes annual contributions to the EmployeeÃs Group Gratuity Life Assurance Policy with Birla Sunlife Insurance Company Limited, a funded defined benefit plan for qualifying employees. The scheme provides for lump sum payment to vested employees at retirement, death while in employment or on termination of employment of an amount equivalent to 15 days salary for service, payable for each completed year of service or part thereof in excess of six months. Vesting occurs upon completion of five years of service.
The present value of the defined benefit obligation and current service cost were measured using the Projected Unit Credit Method, with actuarial valuations being carried out at each balance sheet date.
The expected on return on plan assets determined consulting several applicable factors mainly the compensation of the plan assets held, assesses risks of asset management, historical result of the return on plan assets and the CompanyÃs policy for plan asset management.
14. The Company has no information as to whether any of its suppliers constitute small scale/ ancillary undertaking and therefore, the amounts due to such suppliers have not been identified and also there is no information as to whether any dues from suppliers covered under "The Mirco, Small and Medium Enterprise Development Act, 2006 as at March 31, 2010.
15. The figures are adjusted to the nearest rupee.
16. Previous yearÃs figures are regrouped / rearranged wherever necessary to make them comparable with the current year.
17. Accounting Standards prescribed by the Institute of Chartered accountants of India have been followed wherever applicable.
18. Details of Licensed Capacity, Installed Capacity and Actual Production:
i. Licensed Capacity : The activities of the Company are not covered under the present industrial licensing regulations and accordingly the Company is not required to get any industrial license.