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Notes to Accounts of Khaitan Chemicals & Fertilizers Ltd.

Mar 31, 2015

1. Corporate Information

Khaitan Chemicals & Fertilizers Ltd. (the Company) is engaged in the manufacturing of Single Super Phosphate Fertilizers (Powder & Granulated) and Sulphuric Acid and its variants, Processing of Oil Seed (mainly Soybean) and crude edible oil, selling of De-oiled Cake and Crude/Refined Oil & Generation and selling of Wind Power.

The Company is a public limited company incorporated and domiciled in India under the provisions of Companies Act, 2013. Its shares are listed on the Bombay Stock Exchange Limited, Mumbai (BSE).

2. Segment Information for the year ended 31st March, 2015 as required by Accounting Standard-17 Segment Reporting

(a) The Company is organized into three primary business segments mainly :

i. Fertilizers and Chemicals

ii. Soya

iii. Others

3. Contigent Liabilitie not provided for : Rs. in Lacs Year ended Year ended 31.03.2015 31.03.2014 S.No. Particulars

a Sales Tax Demand (under appeal) 0.48 0.48

b Purchase Tax (under appeal) 63.38 63.38

c Royalty on Rock Phosphate claimed by RSMM 158.38 158.36

d Entry Tax 28.38 28.38

e Sales Trade Tax 1.00 1.00

f Excise Duty 34.64 17.79

g Income-Tax 1.52 139.09

I Vat Tax (09-10) - 18.72

Estimated amount of Capital Commitments (net of advances) not provided for 20.95 26.27

4 The Company is in the process of obtaining confirmations and reconciliation with its debtors, creditors and other dues receivables. The confirmations to the extent received have been reconciled and adjustments, if any, have been made. The others are pending for confirmations, reconciliations and adjustments, if any. However, the management does not expect any significant variations in the existing status.

5 In opinion of the Board and to the best of their knowledge and belief, value on realisation of loans, advances and current assets in the ordinary course of business will not be less than the amount at which they are stated in the Balance Sheet.

6 Other Current Assets include claims filed under Rajasthan Investment Promotion Scheme (RIPS), 2003 of Rs.6.27 Lacs (Previous year: Rs.6.27 Lacs) pertaining to 2006-07 and 2007-08, which were refused by the appropriate authorities in view of introduction of Rajasthan Value Added Tax w.e.f. 1st April, 2006. But the Company has considered the amount as recoverable and filed an appeal with the Tax Board, Ajmer (Rajasthan).

7 The Company has not provided for Moping up of subsidy on raw materials of fertilizer as on 31.03.2011 in terms of Office Memorandum No. 23011/1/2010-MPR dated 11-07-2011 issued by the Ministry of Chemicals & Fertilizers, Govt, of India, being reconsidered vide their letter No 23011/1/2010-MPR(Pt) dated 22.08.2012 and decided not to effect recovery till a policy in this regard is formulated. This has strengthened the management's viewfor not providing the above liability.

8. Previous year figures have been re-arranged and/or regrouped wherever considered necessary

9. The financial statements are presented Rs. in lacs except EPS and the share data.


Mar 31, 2014

1. Contingent Liabilities not provided for :

Rs.in Lacs S. No. Particulars 31.03.2014 31.03.2013

a Sales Tax Demand (under appeal) 0.48 0.48

b Purchase Tax (under appeal) 63.38 63.38

c Royalty on Rock Phosphate claimed by RSMM 158.36 158.36

d Entry Tax 28.38 28.38

e Sales Trade Tax 1.00 1.00

f Excise Duty 17.79 21.87

g Income-Tax 139.09 19.34 h Cess on Rock Phosphate - 409.78

I Vat Tax (09-10) 18.72

2. Estimated amount of Capital Commitments (net of advances) not provided for 26.27 1191.80

3. The Company is in the process of obtaining confirmations and reconciliation with its debtors, creditors and other dues receivables. The confirmations to the extent received have been reconciled and adjustments, if any, have been made. The others are pending for confirmations, reconciliations and adjustments, if any. However, the management does not expect any significant variations in the existing status.

4. In opinion of the Board and to the best of their knowledge and belief, value on realisation of loans, advances and current assets in the ordinary course of business will not be less than the amount at which they are stated in the Balance Sheet.

5. Other Current Assets include claims filed under Rajasthan Investment Promotion Scheme (RIPS), 2003 of Rs. 6.27 Lacs (Previous year: Rs.6.27 Lacs) pertaining to 2006-07 and 2007-08, which were refused by the appropriate authorities in view of introduction of Rajasthan Value Added Tax w.e.f. 1 st April, 2006. But the Company has considered the amount as recoverable and filed an appeal with the Tax Board, Ajmer (Rajasthan).

6. The Company has not provided for Moping up of subsidy on raw materials of fertilizer as on 31.03.2011 in terms of Office Memorandum No. 23011/1/2010-MPR dated 11-07-2011 issued by the Ministry of Chemicals & Fertilizers, Govt, of India, being reconsidered vide their letter No 23011/1/2010-MPR(Pt) dated 22.08.2012 and decided not to effect recovery till a policy in this regard is formulated. This has strengthened the management''s view for not providing the above liability.

7. Previous year figures have been re-arranged and/or regrouped wherever considered necessary

8. The financial statements are presented Rs. in lacs except EPS and the share data.


Mar 31, 2013

1. Corporate Information

Khaitan Chemicals & Fertilizers Ltd. (the Company) is a public Company domicile in India and incorporated under the provisions of Companies Act, 19S6. Its shares are listed on the Bombay Stock Exchange Ltd. (BSE], Mumbai. The Company is engaged in the manufacturing and selling of Single Super Phosphate and Sulphuric Acid, Processing of Oil Seed (mainly Soybean] and crude edible oil, selling of De-oiled Cake and Crude/Refined Oil & Generation and selling of Wind Power.

2. Basis of preparation of financial statements

The financial statements of the Company have been prepared to comply in all material respects with the notified accounting standards by the Companies (Accounting Standard] Rule, 2006 and relevant provisions of the Companies Act, 19S6. The financial statements are prepared on historical cost convention on an accrual basis. The Accounting Policies have been consistently applied by the Company.

3 Segment Information for the year ended 31s1 March, 2013 as required by Accounting Standard -17 Segment Reporting (a) The Company is organized into three primary business segments mainly: i. Fertilizers and Chemicals ii. Soya iii. Others

4 Disclosure as per Accounting Standard -18 on Related Party Disclosures Relationship:

(a) Related Party where control exists :

Shradha Project Limited

(b) Key Management Person and their Relatives :

(i) Shri Shailesh Khaitan Chairman & Managing Director

(ii) Smt Swapna Khaitan Wife af Chairman & Managing Director

(iii) Shri J.L. Jajaa Whale Time Director

(iv) Shri R.S. Vijayvargiya President & Secretary

(v) Ms. Monica Vijayvargiya Daughter of President & Secretary

(c) Related party which is under significant influence of KMP and / or their Relatives: (i) The Majestic Packaging Company Private Limited

(ii) Tribhuvan Properties Limited

(iii) Aarti Marketing Private Limited

(iv) Shobhan Enterprises Private Limited

5 Contingent Liabilities not provided for:

S. NoParticulars 31.03.2013 31.03.2012

a Sales Tax Demand (under appeal) 0.48 0.48

b Purchase Tax (under appeal) 63.38 63.38

c Royalty on Rock Phosphate claimed by RSMM 158.36 158.36

d Entry Tax 28.38 28.38

e Sales Trade Tax 1.00 1.00

f Excise Duty 21.87 17.79

g Income-Tax 19.34 7.58

h Cess on Rock Phosphate 409.78

6 Estimated amount of Capital Commitments (net of advances) not provided for 1191.80 1031.34

7 The Company is in the process of obtaining confirmations and reconciliation with its debtors, creditors and other dues receivables. The confirmations to the extent received have been reconciled and adjustments, if any, have been made. The others are pending for confirmations, reconciliations and adjustments, if any. However, the management does not expect any significant variations in the existing status.

8 In opinion of the Board and to the best of their knowledge and belief, value on realisation of loans, advances and current assets in the ordinary course of business will not be less than the amount at which they are stated in the Balance Sheet.

9 Other Current Assets include claims filed under Rajasthan Investment Promotion Scheme (RIPS), 2003 of Rs. 6.27 Lacs (Previous year: Rs.21.82 Lacs) pertaining to 2006-07 and 2007-08, which were refused by the appropriate authorities in view of introduction of Rajasthan Value Added Tax w.e.f. 1st April, 2006. But the Company has considered the amount as recoverable and filed an appeal with the Tax Board, Ajmer (Rajasthan).

10 The Company has not provided for Moping up of subsidy on raw materials of fertilizer as on 31.03.2011 in terms of Office Memorandum No. 23011/1/2010-MPR dated 11-07-2011 issued by the Ministry of Chemicals & Fertilizers, Govt, of India, being reconsidered vide their letter No 23011/1/2010-MPR(Pt) dated 22.08.2012 and decided not to effect recovery till a policy in this regard is formulated. This has strengthen the managements view for not providing the above liability.

11 Previous year figures have been re-arranged and/or regrouped wherever considered necessary

12 The financial statements are presented Rs. in lacs except EPS and the share data.


Mar 31, 2012

Equity Shares

a) Reconciliation of the shares outstanding at the beginning and at the end of reporting period. During the year share of Rs. 10/- each has bean split tad into Re. 1/- each and therefore Na. of shares increased to 9,69,89,200 from 96,98,920.

b) Terms/rights attached to equity shares:

The Company has only one class of equity shares having a par value of Re. 1 per share. Each holder of equity share is entitled to 1 vote per share. The Company declares and pays dividend in Indian rupee. 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 par share dividend recognized as distributions to equity shareholders was Ra.0.24 per share (31st March, 2011 Re.0.24 per share (adjusted for sub-division of equity shares).

In the event of liquidation of the Company, the holders of equity shares will be entitled to receive remaining assets of the Company, after distribution of all preferential amount. The distribution will be in proportion to the number of equity shares held by the shareholders.

(i) Rupee Term Loan of Rs 344.94 lacs {sanctioned Rs.525 lacs) from Bank (SBI) is primarily secured by way of first charge on entire Current & Future Fixed assets of the company on pari-passu basis with other Term Lenders and collaterally secured by second charge on entire current & future current assets of the Company on pari-passu basis and through first exclusive charge over entire Fixed Assets of Shobhan Enterprises Pvt. Ltd. This loan is guaranteed by Chairman & Managing Director Mr. Shailesh Khaitan and through Corporate Guarantee of Shobhan Enterprises Pvt. Ltd. This loan sanctioned in 2007-08 presently carries interest at the rate BR 4.25% which ranged from 12.50% to 14.25% p.a. during the current year and repayable in 8 Quarterly Installments of Rs 5 Lacs each, 4 Quarterly Installment of Rs 10 lacs each, 4 Quarterly Installment of Rs 25 lacs each and 2 Q ua rterly I nsta 11 ment of Rs 172.50 lacs each.

(ii) Rupee Term Loan of Rs 800 lacs {sanctioned Rs.1000 lacs) from Bank (IDBI Bank Ltd.) is primarily secured by way of first charge on entire immovable assets and moveable fixed assets of the company, both present and future on pari-passu basis with existing charge holders and collaterally secured holders. This loan in irrevocably and unconditionally guaranteed by Chairman & Managing Director, through second charge by way of hypothecation an the entire current assets of the company on pari-passu basis with existing charge Chairman & Managing Director Mr. Shailesh Khaitan. This loan sanctioned in 2010-11 presently carries interest at the rate BR 3.50%, which ranged from 13.50% to 14.25% p.a. and repayable in 20 Quarterly Installments equal Quarterly Installment of Rs 50 lacs each ending on 1st Jan.'2016.

(iii) Rupee Term Loan of Rs 1100 lacs (sanctioned Rs.1200 lacs) from Bank ( IDBI Bank Ltd.) is primarily secured by way of first charge on entire immovable assets and moveable fixed assets of the company, both present and future on pari-passu basis with existing charge holders and collaterally secured by through second charge by way of hypothecation on the entire current assets of the company on pari passu basis with existing charge holders. This loan in irrevocably and unconditionally guaranteed by Chairman & Managing Director Mr. Shailesh Khaitan. This loan sanctioned in 2011-12 presently carries interest at the rate BR 3.50% .which ranged from 14.25% to 15.25% P.A. during the current year and repayable in 12 Quarterly Installments of Rs 100 lacs each ending on 1st Oct'15.

(iv) Rupee Term Loan of Rs 800 lacs {sanctioned Rs.800 lacs) from Bank (Axis Bank Ltd. ) is primarily secured by way of first charge on the entire fixed assets to the company, both present and future on pari passu basis with existing charge holders and collaterally secured by through second charge by way of hypothecation on the entire current assets of the company both present and future on pari-passu basis with existing charge holders. This loan is personally guaranteed by Chairman & Managing Director Mr. Shailesh Khaitan. This loan sanctioned in 2011-12 carries interest at the rate BR 3.50%, being at 13.50% p.a. during the year and repayable in 12 Quarterly Installments of Rs 66.67 lacs each ending on 30th March'15.

(v) Rupee Term Loan of Rs. 62.82 lacs (sanctioned Rs. 115.596 lacs) had been taken from Kotak Mahindra Bank for acquiring Audi Car I-6 & I 8, at the rate of 8.595% P.A. with a tenure of 59 months ending on 1st August '14. This loan was sanctioned in 2009-10 & there is no continuing default as on the balance sheet date in repayment of loan and interest. The Loan is secured by the hypothecation of the car.

(vi) Rupee Term Loan of Rs.15.50 lacs (sanctioned Rs 18.00 lacs) has been availed from HDFC Bank in 2011-12 for acquiring Skoda Car, at the rate of 11.16% p.a. with a tenure of 60 months ending on 7th May'16. There is no continuing default as on the balance sheet date in repayment of loan and interest. The Loan is secured by the hypothecation of the car.

(vii) Rs.400 lacs Unsecured Loan & advances has been procured from related party viz. Aarti Marketing Pvt. Ltd. as promoters fund infusion towards Rajnandgaon project @ 12% PA. repayable on or after 01.01.2016.

(viii) Rs.100 lacs Unsecured Loan & advances has been procured from related party viz. Shradha Projects Pvt. Ltd. as promoters fund infusion towards Rajnandgaon project© 12% P.A. repayable on or after 01.01.2016.

There is no continuing default as on the balance sheet date in repayment of above loans and interest.

i) Cash Credit/Working Capital Demand Loan & Buyer's Credit from Banks is secured by First Hypothecation charge on the company's entire stocks comprising raw materials, stocks in transit stocks in process, finished goods, consumable stores & spares and receivables on pari passu basis among consortium bankers and secured by second charge over the entire fixed assets of the Company on pari-passu basis among consortium bankers. Borrowings are further secured by pledge of 8 lacs shares of the Company with face value of Re 1/- per share held by Chairman and Managing Director Mr. Shailesh Khaitan.

ii) Buyers' credit from bank is secured against margin money deposit & carries interest rate ranging from 1.66 % to 3.75%.

iii) All short term Bank Borrowings are personally guaranteed by Mr. Shailesh Khaitan.

iv) Cash Credit carries interest rate ranging from 11.50% -15.00% during the year. There is no continuing default as on the balance sheet date in re payment of loan and interest.

NOTES:

a) Depreciation has been provided on SLM rates after taking into consideration the revised rates of depreciation vide Circular No.14/93-1/12/92 CL-V dated 20.12.93 issued by Ministry of Law, Justice and Company Affairs, Department of Company Affairs. Further, while applying the new rates of depreciation, the Company has adopted the option of applying the new rates on the original cost of the assets in accordance with the above Circular.

b) The Company has treated its Sulphuric Acid Plant, Soya Oil Plant and Turbo Generator as continuous process plant and depreciation charged accordingly.

c) Vehicles includes one car purchased for Rs.100.65 lacs for which registration in the name of the Company is still pending.

d) Vehicles includes motorcars taken on hire purchase of Rs 22.54 lacs (previous year Rs.Nil).

e) Amortization of Leasehold Land includes Rs 3.82 Lacs (Previous year Rs.3.82 lacs), included in capital work in progress as pre-operative expenses in respect of Dahej Project.

f) Lease hold Land includes Rs 377.50 Lacs (Previous year Rs 377.50 lacs) in respect of which lease deeds are pending execution.

Other Assumptions:

a) Future salary increases considered in actuarial valuation take in to account inflation, seniority, promotion and other relevant factors, such as supply and demand in the employment market

b) Expected Return on Plan asses is based on market expectations, at the beginning of the year, for retunes over the entire life of the related Obligations.

c) Gratuity is payable to all employees at the rate of 15 days salary for each completed years of service. In respect of employees covered by the Payment of Gratuity Act, 1965. the same is subject to a maximum of Rs 10 lacs.

ii) Defined Contribution Plans -charge to the Profit and Loss Account based on contribution.

1. Segment Information for the year ended 31st March, 2012 as required by Accounting Standard -17 Segment Reporting

(a) The Company is organized into three primary business segments mainly :

i.) Fertilizers and Chemicals

ii.) Soya

iii.) Others

(b) Segments have been identified and reported taking in to account the nature of products and services, the differing risk and returns, and the internal reporting system

2 Contingent Liabilities not provided for: Rs in Lacs

a Sales Tax Demand (under appeal) 0.48 0.48

b Purchase Tax (under appeal) 63.38 63.38

c Royalty on Rock Phosphate claimed by RSMM 158.36 158.36

d Entry Tax 28.38 40.03

e Sales Trade Tax 1.00 1.49

f Excise Duty 17.79 17.79

g Income-Tax 7.58 43.49

h Madhya Pradesh Industrial Relation Act - 61.74

3. Estimated amount of Capital Commitments (net of advances) not provided for 1031.34 1022.36

4 The Company is in the process of obtaining confirmations and reconciliation with its debtors, creditors and other dues receivables. The confirmations to the extent received have been reconciled and adjustments, if any, have been made. The others are pending for confirmations, reconciliations and adjustments, if any. However, the management does not expect any significant variations in the existing status.

5 In opinion of the Board and to the best of their knowledge and belief, value on realization of loans, advances and current assets in the ordinary course of business will not be less than the amount at which they are stated in the Balance Sheet.

6 Other Current Assets include claims filed under Rajasthan Investment Promotion Scheme (RIPS), 2003 of Rs. 6.27 Lacs (Previous year: Rs.21.82 Lacs) pertaining to 2006-07 and 2007-08, which were refused by the appropriate authorities in view of introduction of Rajasthan Value Added Tax w.e.f. 1st April, 2006. But the Company has considered the amount as recoverable and filed an appeal with the Tax Board, Ajmer (Rajasthan).

Previous year figures

Till the year ended 31stMarch 2011, the company was using pre-revised schedule VI to the Companies Act 1956, for preparation and presentation of its financial statements. During the year ended 31st March 2012, the revised Schedule VI notified under the Companies Act 1956, has become applicable to the company. The Company has reclassified previous year figures to conform to this year's classification.

The financial statements are presented Rs. in lacs except EPS and the share data.


Mar 31, 2011

(Rs. in lacs) 31.03.2011 31.03.2010 1. Contingent Liabilities not provided for:

a. Outstanding Bank Guarantee 4267.71 949.41

b. Sales Tax Demand (under appeal) 0.48 0.48

c. Purchase Tax (under appeal) 63.38 192.84

d. Royalty on Rock Phosphate claimed by RSMM 158.36 158.36

e. Entry Tax 40.03 0.11

f. SalesTradeTax 1.49 2.96

g. Central sales tax - 1.87 h. Excise Duty 17.79 17.79 i. Income-Tax 43.49 74.52 j. Madhya Pradesh Industrial Relation Act 61.74 63.27 k. Custom duty under protest - 38.89

2. Disclosures required under the Micro, Small and Medium Enterprises Development Act, 2006 (the Act):

Under the Micro, Small and Medium Enterprise Development Act, 2006, the Company is in the process of identifying such parties .In case of the parties already identified, there are no Micro and Small Enterprises, to whom the Company owes, which are outstanding for more than 45 days as at 31 st March, 2011. Further, during the period, no interest has been paid or payable under the terms of the said Act.

3. The Company is in the process of obtaining confirmations and reconciliation with its debtors, creditors and other dues receivables. The confirmations to the extent received have been reconciled and adjustments, if any, have been made. The others are pending for confirmations, reconciliations and adjustments, if any. However, the management does not expect any significant variations in the existing status.

4. In opinion of the Board and to the best of their knowledge and belief, value on realisation of loans, advances and current assets in the ordinary course of business will not be less than the amount at which they are stated in the Balance Sheet.

5. Repairs and maintenance includes consumption of stores and spares of Rs.516.13 lacs (previous year: Rs.305.19 lacs) and provision for non-moving items of Rs. Nil lacs (previous year. Rs.1.00 lacs)

6. Other Current Assets include claims filed under Rajasthan Investment Promotion Scheme (RIPS), 2003 of Rs. 21.82 Lacs (Previous year: Rs.21.82 Lacs) pertaining to 2006-07 and 2007-08, which were refused by the appropriate authorities in view of introduction of Rajasthan Value Added Tax w.e.f. 1" April, 2006 . But the Company has considered the amount as recoverable and filed an appeal with the Tax Board, Ajmer (Rajasthan).

7. During the year, the Company has purchased a manufacturing facility from M/s Jairam Phosphates Limited as a strategic acquisition. Based on valuation report by professional valuer, the cost has been allocated amongst land building, plant and machinery etc.

Other Assumptions:

a) Future salary increases considered in actuarial valuation take in to account Inflation, seniority, promotion and other relevant factors, such as supply and demand in the employment market.

b) Expected Return on Plan assets is based on market expectations, at the beginning of the year for returns over the entire life of the related Obligations,

c) Gratuity is payable to all employees at the rate of 15 days salary for each completed years of service. In respect of employees covered by the Payment of Gratuity Act, 1965, the same is subject to a maximum of Rs. 10.00 lacs.

Note:

During the year, the Company has adopted Accounting Standard -15 Employee Benefits (Revised), in accordance with the transitional Provision of the same, Rs.36.81 lacs (net of deferred tax asset of Rs.7.86 Lacs) being the difference between relevant liability as on 31st March, 2010 and as determined with this accounting standard as on 1st April, 2010, has been adjusted to the opening General Reserve.

Change in Accounting Policy

Since the valuation by the LIC was based on project unit credit method, therefore the valuation of gratuity by independent actuary and LIC is significantly simiiar. However, in respect of Leave encashment had the policy of booking expense on cash basis continued; profit for the year would have been higher by Rs 7.05 lacs & Provision would have been lower by Rs 5.47 lacs.

8. Segment Information for the year ended 31 st March, 2011 as required by Accounting Standard -17 Segment Reporting:

(a) The Company is organized into three primary business segments mainly: i. Fertilizer and Chemicals ii. Soya iii. Others

9. Related Party Disclosures as required by Accounting Standard-18 "Related Party Disclosures" are given below: Relationship:

(a) Related Party where control exists: Shradha Projects Limited

(b) An Associate and with whom the Company has transactions:

Shobhan Enterprises Private Limited (ceases to be an associate w.e.f 15th June, 2010)

(c) Key Management Person and their Relatives:

(i) Shri Shailesh Khaitan : Chairman & Managing Director

(ii) Smt. Swapna Khaitan : Wife of Chairman & Managing Director

(iii) ShriR.S. Vijayvargiya : Presidents Secretary

(d) Related party which is under significant influence of KMP and/or their Relatives: (i) The Majestic Packaging Company Private Limited

(ii) Tribhuvan Properties Limited.

(iii) Arati Marketing Private Limited

(iv) Shobhan Enterprises Private Limited

10) Additional information, wherever applicable, pursuant to paragraph 3 & 4 of Part II of Schedule VI to the Companies Act, 1956. (a) Particulars of Capacities and Production (as certified by the Management)

(Note: Licensed Capacity per annum not indicated due to the abolition of Industrial Licenses as per Notification No.477 (E) dated 25th July, 1991 issued under The Industries (Development and Regulations) Act, 1951.

* Actual Production includes 34505 MT processed through job work basis

** Actual Production includes 10551 MT processed done through job work basis "Actual Production includes 868 MT processed done through job work basis

11. Previous year figures have been re-arranged and/or re-grouped wherever considered necessary.


Mar 31, 2010

(Rs. in lacs)

31.03.2010 31.03.2009

1. Contingent Liabilities not provided for:

a. Outstanding Letter of Credit issued by Bank (Net of liabilities provided) - 1,100.48

b. Outstanding Bank Guarantee 949.41 2,184.15

c. Sales Tax Demand (under appeal) 0.48 0.60

d. Purchase Tax (under appeal) also filed Corporate Guarantee 192.84 203.05

e. Royalty on Rock Phosphate claimed by RSMM 158.36 158.36

f. Entry Tax 0.11 0.11

g. Sales Trade Tax 2.96 -

h. Central sales tax 1.87 -

i. Excise Duty 17.79 -

j. Income-Tax 74.52 -

k. Labour Laws 63.27 53.19

I. Custom duty under protest 38.89 -

2. Sales include /(reduced):

Subsidy (net) 5391.71 10595.54

Sale of power 72.81 106.28

Revenue from NCDEX (net) 22.06 (76.49)

Rebate and Discount (129.19) (383.48)

2. Deferred Taxes

The major components of deferred tax assets and deferred tax liabilities are set out below: Deferred tax liabilities

(a) Depreciation/Amortisation 1523.22 1597.94

(b) Others - 21.27

1523.22 1619.21

Deferred Tax Assets

(a) Provision for doubtful debts/non moving items 2.09 -

(b) Expenses allowed on payment basis 4.14 -

6.23

Deferred Tax Liabilities / (Assets) 1516.99 1619.21

3. Disclosures required under the Micro, Small and Medium Enterprises Development Act, 2006 (the Act):

Under the Micro, Small and Medium Enterprise Development Act, 2006, the Company is in the process of identifying such parties .In case of the parties already identified, there are no Micro and Small Enterprises, to whom the Company owes, which are outstanding for more than 45 days as at 31st March, 2010 . Further, during the period, no interest has been paid or payable under the terms of the said Act.

4. The Company is in the process of obtaining confirmations and reconciliation with its debtors, creditors and other dues receivables. The confirmations to the extent received have been reconciled and adjustments, if any, have been made The others are pending for confirmations, reconciliations and adjustments, if any. However, the management does not expect any significant variations in the existing status.

5. In opinion of the Board and to the best of their knowledge and belief, value on realisation of loans, advances and current assets in the ordinary course of business will not be less than the amount at which they are stated in the Balance Sheet

6. Repairs and maintenance includes consumption of stores and spares of Rs.305.19 lacs (previous year: Rs. 254.52 lacs) and provision for non- moving items of Rs.1.00 lacs (previous year: Rs.Nil lacs)

7. Other Current Assets include claims filed under Rajasthan Investment Promotion Scheme (RIPS), 2003 of Rs. 21.82 Lacs (Previous year: Rs.21.82 Lacs) pertaining to 2006-07 and 2007-08, which were refused by the appropriate authorities in view of introduction of Rajasthan Value Added Tax w.e.f. 1st April, 2006 . However, based on the expert opinion, the amount has been considered good & recoverable by the management and accordingly an appeal has been filed with the Tax Board, Ajmer, Rajasthan.

8. In respect of the liabilities towards gratuity and leave encashment, the management has taken policies with Life Insurance Corporation of India (LIC) and deposited amount with it. However , as required by AS-15 - Employees Benefits, the Company will be getting the actuarial done and in case of any deficiency , the same would be provided in the coming financial year.

9. Disclosures in respect of Derivative Instruments :

The Company uses Forward Exchange Contracts to hedge its exposure in foreign currency. The information on derivative instrument is as follows:

10) Segment Information for the year ended 31st March, 2010 as required by Accounting Standard -17 Segment Reporting:

(a) The Company is organized into two primary business segments mainly:

i. Fertilizer and Chemicals

ii. Soya

(b) Segments have been identified and reported taking into account the nature of products and services, the differing risk and returns, and the internal financial reporting system

11. Related Party Disclosures as required by Accounting Standard -18 "Related Party Disclosures" are given below: Relationship:

(a) Related Party where control exists:

(i) Shradha Projects Limited

(b) An Associate and with whom the Company has transactions: (i) Shobhan Enterprises Private Limited

(c) Key Management Person and their Relatives:

(i) Shri Shailesh Khaitan : Chairman & Managing Director

(ii) Smt. Swapna Khaitan : Wife of Chairman & Managing Director

(iii) Shri R.S. Vijayvargiya : President & Secretary

(iv) Smt. Manju Vijayvargiya : Wife of President

(d) Related party which is under significant influence of KMP and/or their Relatives:

(i) The Majestic Packaging Company Private Limited

(ii) Tribhuvan Properties Limited. (iii) Arati Marketing Private Limited

 
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