Home  »  Company  »  Kilitch Drugs(I)  »  Quotes  »  Notes to Account
Enter the first few characters of Company and click 'Go'

Notes to Accounts of Kilitch Drugs(I) Ltd.

Mar 31, 2015

1. Disclosure as per Accounting Standard 15 (Revised) "Employee Benefts" notifed under the relevant provisions of the Companies Act,2013

Defned Beneft Plan:

The company provides gratuity beneft to it's employees which is a defned beneft plan. The present value of obligation is determined based on actuarial valuation using the Projected Unit Credit Method, which recognizes each period of service as giving rise to additional unit of employee beneft entitlement and measures each unit separately to build up the fnal obligation. The obligation for leave encashment is recognised in the same manner as gratuity.

The Figures for the previous year [ F.Y. 13-14] are not available as the company was, hitherto, providing for the Gratuity Liability as per the working obtained from the LIC of India and Leave Encashment Liability based on its own calculations.

2. The company is mainly engaged in the development and operations of Pharmaceutical business. All the activities of the company revolve around this main business. Considering the nature of the company's business and operations, there are no separate reportable segments (business and/or geographical) in accordance with the requirements of Accounting Standard 17; "Segment Reporting", issued by the Institute of Chartered Accountants of India.

3. As per Accounting Standard 18 (AS- 18) "Related Party Disclosures", issued by the Institute of Chartered Accountants of India, the disclosures of transactions with the related parties as defned in the Accounting Standard are given below:- [As identifed by the Management]

Related Party Transactions

Name of the related parties and Nature of Relationship

I) Subsidiary of the Companies

Monarchy Healthserve Pvt. Ltd. Subsidiary

(W.e.f. F . Y. 2014-15)

II) Key Managerial Personnel

Mr. Mukund Mehta Managing Director

Mr. Paresh Mehta Whole Time Director

Mr. Bhavin Mehta Whole Time Director

Mr. Deepu K. Whole Time Director

Mrs. Mira Bhavin Mehta Whole Time Director

III) Enterprises signifcantly infuenced by Key Managerial Personnel

NBZ Pharma Ltd. NBZ Healthcare LLP. J.D. Enterprises Kilitch Pharma (Co.) Ltd. EyeKare Kilitch Ltd.

4. Contingent Liabilities:- a. Estimated amount of guarantees & Letter of Credit given not provided for in the accounts is Rs, 63.08 Lakhs (Previous Year Rs, 63.08/- Lakhs).

b. The disputed statutory dues in respect of Income Tax aggregating to Rs, 50,305,650/- pertaining to A.Y. 2008-09 have not been deposited as the matter is pending before the CIT (Appeals).

5. Employee Stock Option Plan

As per Employee stock options Scheme (Kilitch ESOS 2007), each option is convertible into one equity shares Rs, 10/- each at exercise price of Rs, 47.50/- per share. During the year, fresh options were not granted and the employees did not exercise any options.

6. The Balances of the Sundry Debtors, Sundry Creditors, Loans & Advances and Inter Corporate Deposits, whether Debit or Credit, are subject to confrmations from the respective parties and the reconciliations/ adjustments arising there from, if any.

However, in the opinion of the Management, the Current Assets, Loans and advances are approximately of the value stated in the balance sheet if realized in the ordinary course of the business and the provision for all known liabilities is adequate and not in excess of amounts considered reasonably necessary.

7. There are no Micro and Small Enterprises, to whom the Company owes dues, which are outstanding for more than 45 days as at March 31, 2015. The above information, regarding Micro and Small Enterprises has been determined to the extent such parties have been identifed on the basis of information available with the Company. This has been relied upon by the Auditors.

Figures of the previous year have been regrouped and/or recast wherever necessary so as to conform to the current year's classifcation.


Mar 31, 2014

1. Business Transfer and Product Transfer

The Company entered into a Business Transfer Agreement (BTA) on 6th October 2011 with Akom India Private Limited (AIPL), a Company incorporated under the Companies Act 1956 and having its registered office at 101-104, Banaji House, First Floor, Flora Fountain, Fort Mumbai 400001 (Purchaser). The Company has been restricted from exporting the products sold to AIPL under the PTA to all the countries except to 13 countries where they are allowed to export their other products. Profit on sale and export sale of products under the PTA will have to be paid to AIPL. During the Financial Year 2012-13, the company had to transfer Profit on sale of products amounting to Rs. 3,203,048 to Akom Private Limited.

The company also had to make excess payment against the Net Working Capital to the tune ofRs. 6,342,494. Both these expenses amounting to Rs. 9,545,542 have been written off as Extraordinary expenses during the Financial Year 2012-13.

2. Contingent Liabilities:-

Estimated amount of guarantees & Letter of Credit given not provided for in the accounts is Rs. 63.08 Lakhs (Previous Year Rs. 63.08/- Lakhsf.

3. There are no Micro and Small Enterprises, to whom the Company owes dues, which are outstanding for more than 45 days as at March 31,2014. The above information, regarding Micro, 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.

4. The company is mainly engaged in the development and operations of Pharmaceutical business. All the activities of the company revolve around this main business. Considering the nature of the company''s business and operations, there are no separate reportable segments (business and/or geographical) in accordance with the requirements of Accounting Standard 17; "Segment Reporting", issued by the Institute of Chartered Accountants of India.

5. The Balances of the Sundry Debtors, Sundry Creditors, Loans & Advances and Inter Corporate Deposits, whether Debit or Credit, are subject to confirmations from the respective parties and the reconciliations/ adjustments arising there from, if any.

However, in the opinion of the Management, the Current Assets, Loans and advances are approximately of the value stated in the balance sheet if realized in the ordinary course of the business and the provision for all known liabilities is adequate and not in excess of amounts considered reasonably necessary.

6. Employee Stock Option Plan

a) As per Employee stock options Scheme (Kilitch ESOS 2007), each option is convertible into one equity shares Rs. 10/- each at exercise price ofRs. 47.50/- per share. During the year fresh options were not granted and employees did not exercise any options.

b) The employee compensation cost on account of this grant applicable for the year is Rs. Nil [P. Y. Rs. 8.95 Lacs],

7. As per Accounting Standard 18 (AS- 18) "Related Party Disclosures", issued by the Institute of Chartered Accountants of India, the disclosures of transactions with the related parties as defined in the Accounting Standard are given below:- [As identified by the Management.

Related Party Transactions

I. Name of the related parties and Nature of Relationship

A) Key Managerial Personnel

Mukund Mehta Chairman and Managing Director

Paresh Mehta Jt. Managing Director

- Bhavin Mehta Director

- Deepu K. Director

Mira B. Mehta Director (w.e.f. 17/10/2013)

B) Enterprises significantly influenced by Directors and/or their relatives

NBZ Pharma Ltd.

NBZ Healthcare LLP.

Arham Neeta Realities LLP -

Kilitch Pharma (Co.) Ltd.

EyeKare Kilitch Ltd.

8. Figures of the previous year have been regrouped and/or recast wherever necessary so as to conform to the current year''s classification.


Mar 31, 2013

Note 1

Business Transfer and Product Transfer -

The Company entered into a Business Transfer Agreement (BTA) on 6th October 2011 with Akorn India Private Limited (AIPL), a Company incorporated under the Companies Act 1956 and having its registered office at 101-104, Banaji House, First Floor, Flora Fountain, Fort Mumbai 40000l(Purchaser). The Company has been restricted from exporting the products sold to AIPL under the PTA to all the countries except to 13 countries where they are allowed to export their other products. Profit on sale and export sale of products under the PTA will have to be paid to AIPL. During the year the company had to transfer Profit on sale of products amounting to Rs. 32,03,048 to Akom Private Limited.

The Company''s net working capital at Paonta Sahib on the date of transfer of business i.e. (28* February, 2012) was estimated at Rs. 14.40 crores which was to be identified after 180 days from the date of the transfer by adjusting the net realized working capital from the purchase value based on which the amount payable or receivable by the Company would be determined mutually between the Company and AIPL These were identified after 180 days from the date of transfer, in November 2012. The company had to make excess payment against the estimated working capital ofRs. 14.40 crores to the tune ofRs. 63,42,494 to AIPL.

Thus the profit on sale of products ofRs. 32,03,048 and t 63,42,494 towards working capital totaling to Rs. 95,45,542 have been written off as Extraordinary items during the current year as these were to be settled in the current year as per the Business Transfer and Product Transfer agreement with AIPL.

Note 2

Micro, Small and Medium Enterprises

The company follows a trade policy as determined by them within Purchase Orders/ Sales Order for Trade Payables and Trade Receivables. The company has sent request to its creditors asking them if they are covered under micro small and medium industries. As no confirmation from the creditors were received the company has not classified creditors in to micro, small and medium industries and outstanding payable to them has not been shown separately.

Based on the information available with the Company, there are no dues payable to micro, small and medium enterprises as defined in The Micro, Small & Medium Enterprises Development Act, 2006. This information has been relied upon by the statutory auditors of the Company.

Note 3

Employee Stock Option Plan

a) As per Employee stock options Scheme (Kilitch ESOS 2007), each option is convertible into one equity shares 710/- each at exercise price of 747.50/- per share. During the year fresh options were not granted and employees did not exercise any options.

b) The employee compensation cost on account of this grant applicable for the year is 7 8,94,624/-.

Note 4

Related Party Transactions (AS-18)

Name of the related parties and Nature of Relationship

a) Subsidiary Companies/ Concerns

Nil

b) Directors and their Relatives

Mr. Mukund Mehta - Managing Director Mr. Paresh Mehta - Joint Managing Director Mr. Bhavin Mehta - Director Mr. Divya Mehta - Relative of Director Mrs. Mira B. Mehta - Relative of Director

c) Enterprises significantly influenced by Directors and/or their relatives NBZ Pharma Ltd.

J.D. Enterprises

EyeKare Kilitch Ltd.(The shares of the company were sold on 12/02/2013)

Kilitch Pharma (Co.) Ltd -Holding company acquired 66,29,342 equity shares(50.10%) on 21/09/2012 (a company in which the Directors are substantially interested)

Note No.5

Segment information

The company is predominantly engaged in Pharmaceutical business and this constitutes the only reportable business segment in accordance with the requirement of Accounting Standard 17- Segment Reporting issued by the Institute of Chartered Accountants of India.

Note No.6

Trade Payable & Trade Receivables

The Trade payables are unsecured, unconfirmed and fully payable by the Company

Trade Receivable : The Trade Receivables, Loan and advance are unsecured, considered good but not confirmed.

Note 7

Previous year figures

The Company has reclassified previous year''s figures to conform to this year''s classification.


Mar 31, 2012

Note 1

Business Transfer

The Company entered into a Business Transfer Agreement (BTA) on 6th October 2011 with Akom India Private Limited (AIPL), a Company incorporated under the Companies Act 19S6 and having its registered office at 101-104, Banaji House, First Floor, Flora Fountain, Fort Mumbai 400001 (Purchaser). As per this agreement the Company sold its business located at Paonta Sahib, Himachal Pradesh as a going concern on a slump sale basis as defined in section 2(42Q of the Income Tax Act, 1961 along with their employees on die terms and condition as set forth in the BTA. The undertaking was sold and transferred on 28ui February 2012 after getting all the necessary clearances as indicated in the BTA. The Company has retained its Name, Trademark(Kilitch) and all other properties and assets at Mumbai

The Cash consideration for the sale of Paonta Sahib plant exclusive of all applicable transfer taxes was Rs. 207.49 crores inclusive of the amount received towards net working capital Rs. 14.40 crores. The Company's net working capital at Paonta Sahib on the date of transfer was estimated at Rs. 14.40 crores which will be identified after 180 days from the date of transfer by adjusting the net realized working capital from the purchase value based on which the amount payable or receivable by rhe Company will be determined by mutual agreement

The Company also transferred certain products by entering into a Product Transfer Agreement (PTA) with AIPL by which the right to manufacture certain products by rhe Company at Mumbai was sold for a consideration of Rs. 14.11 crores to Purchaser.

The Company has been restricted from exporting the products sold to AIPL under the PTA to all the countries except to 13 countries where they are allowed to export their other products. Profit on sale and export sale of products under the PTA will have to be paid to AIPL.

Note 2

Micro, Small and Medium Enterprises

The company follows a trade policy as determined by them within Purchase Orders/ Sales Order for Trade Payables and Trade Receivables. The company has sent request to its creditors asking them if they are covered under micro small and medium industries. As no confirmation from the creditors were received the company has not classified creditors in to micro, small and medium industries and outstanding payable to them has not been shown separately.

Based on the information available with the Company, there are no dues payable to micro, small and medium enterprises as defined in The Micro, Small & Medium Enterprises Development Act, 2006. This information has been relied upon by the statutory auditors of the Company.

Note 3

Employee Stock Option Plan

a) As per Employee stock options Scheme (Kilitch ESOS 2007), each option is convertible into one equity shares Rs. 10/- each at exercise price of Rs.47.50/- per share. During the year fresh options were not granted and employees did not exercise any options. However, due to separations, 87150 options were surrendered and are available for reissue. 73 employees have been shifted to Akorn India Pvt Ltd after the execution of deal for sale of part of business during the year. As these employees have technically separated from Company due to sale of business, it was decided that options held by them will be available for exercise as long as such employees are in the service of Akorn India Pvt Ltd

b) The employee compensation cost on account of this grant applicable for the year is net of reversal due to separation is write back ofRs. 18,56,764/-.

Note 4

Contingent liabilities to the extent not provided for

(Rs. in lakhs)

2011-12 2010-11

(a) Claims against the company not acknowledged as debt 816.81 -

(b) Guarantees and Letter of credits - 372.72

816.81 372.72

Note 5

Related Party Transactions

Name of the related parties and Nature of Relationship

a) Subsidiary Companies/ Concerns EyeKare Kilitch Ltd.

b) Directors and their Relatives

Mr. Pratap Mehta Chairman

Mr. Mukund Mehta Managing Director and CEO

Mr. Paresh Mehta Jt. Managing Director

Mr. Bhavin Mehta Executive Director

Mr. Divya Mehta Relative of Director

Mrs. Mira B Mehta Relative of Director

Mrs.Nita M. Mehta Relative of Director

Mrs.Nehta P. Mehta Relative of Director

c) Enterprises significantly influenced by Directors and/or their relatives NBZ Pharma Ltd.

J.D. Enterprises Kilitch Co. Pharma Ltd

Note No.6

Segment information

The company is predominantly engaged in Pharmaceutical business and this constitutes the only reportable business segment in accordance with the requirement of Accounting Standard 17- Segment Reporting issued by the Institute of Chartered Accountants of India.

Note No.7

Trade Payable & Trade Receivables

The Trade payables are fully payable by the Company

Trade Receivable : The Trade Receivables, Loan and advance are unsecured and considered good to extent stated in the Note no. 17

Note 8

Previous year figures

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


Mar 31, 2011

1) Group / Classification

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

2) Figures in bracket indicate previous year figures

3) Contingent Liabilities not provided for:

(Rs. in Lacs)

Particulars As at 31st March 2011 (2010)

1) In respect of guarantees given by Banks and Counter Guarantees given by the Company 138.39 67

2) In respect of letter of credits 234.33 194

4) Related Party Transactions

Name of the related parties and Nature of Relationship

a) Subsidiary Companies/ Concerns

EyeKare Kilitch Ltd.

b) Directors and their Relatives

Mr. Pratap Mehta Chairman

Mr. Mukund Mehta Managing Director

Mr. Paresh Mehta Jt. Managing Director

Mr. Bhavin Mehta Director

c) Enterprises significantly influenced by Directors and/or their relatives

NBZ Pharma Ltd.

JD. Enterprises

5) Employee Stock Option Plan

The Compensation Committee of the Board allotted 29706 shares during the year on exercise of Employee stock option under Kilitch ESOS 2007. Each option is convertible into one equity share of Rs.10/- each at exercise price of Rs.47.50/- per share.

The employee compensation cost on account of this grant applicable for the year is Rs. 66,94,356 as against Rs.1,00,37,624 accounted in the previous year which was inclusive of Rs.46,47,648 charge for earlier years resulting due to modification in the exercise price during that year.

6) Segment information

The company is predominantly engaged in Pharmaceutical business and his constitutes the only reportable business segment in accordance with the requirement of Accounting Standard 17- Segment Reporting issued by the Institute of Chartered Accountants of India.

7) Sundry Creditors, Debtors , Loans and Advance:

a) Sundry Creditors: The company has sent requests to its creditors asking them if they are covered under micro small and medium industries. As no confirmation from the creditors were received the company has not classified creditors into micro, small and medium industries and outstanding payable to them has not been shown separately. The Sundry creditors are unconfirmed but fully payable and includes Rs.239.75 Lacs Previous year Rs.Nill from Eyekare Kilitch Ltd which is its subsidiary.

b) Sundry Debtors, Loans and Advance : The Sundry Debtors, Loan and advance are unconfirmed, and unsecured but considered good. Amount receivable from a subsidiary company is Rs. NIL.(P.Y 4.13 lacs)


Mar 31, 2010

(A) Contingent Liabilities not provided for:

Rs. in Lacs As at 31* March Particulars 2010 (2009)

1) In respect of guarantees given by Banks and Counter Guarantees given by the Company 67 (62)

2) In respect of letter of credits 194 (154)

(B) Related Party Transactions

Name of the related parties and Nature of Relationship

a) Subsidiary Companies/ Concerns EyeKare Kilitch Ltd.

b) Directors and their Relatives

Mr. Pratap Mehta Chairman

Mr. Mukund Mehta Managing Director and CEO

Mr, Paresh Mehta Managing Director

Mr. Bhavin Mehta Director

(E) Employee Stock Option Plan

The Compensation Committee of the Board granted 1,29,100 options during the year under Kilitch ESOS 2007. Each option is convertible into one equity share of Rs.10/- each at modified exercise price of Rs.47.50/- per share. The options granted would vest over a vesting period of 3 years from the date of grant.

The employee compensation cost applicable is Rs. 1,00,37,624 inclusive of Rs.46,47,648 charges for earlier years resulting due to modification in the exercise price during the year. This working has been done on the basis of net outstanding options and has been computed in accordance with SEB1 (Employee Stock Option Scheme and Employee Stock Purchase Scheme) Guidelines, 1999.

(C) Segment information

The company is predominantly engaged in Pharmaceutical business & this constitutes the only reportable business segment in accordance with the requirement of Accounting Standard 1 7- Segment Reporting issued by the Institute of Chartered Accountants of India.

(D) Sundry Debtors and Creditors:

Sundry Creditors: The company has sent request to its creditors asking them if they are covered under micro small and medium industries. As no confirmation from the creditors were received the company has not classified creditors in to micro, small and medium industries and outstanding payable to them has been shown separately. The Sundry creditors are fully payable.

Sundry Debtors, Loans and Advance : The Sundry Debtors, Loan and advance are unsecured and considered good. Rs.4.13 Lacs is receivable from a subsidiary company.( Previous year Nill)

 
Subscribe now to get personal finance updates in your inbox!