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Notes to Accounts of Kothari Petrochemicals Ltd.

Mar 31, 2015

Note 1:

A. CORPORATE INFORMATION:

Kothari Petrochemicals Limited (Company) was incorporated on 28th April, 1989. The Corporate Identification Number (CIN) is L11101TN1989PLC017347. The company is into manufacture of chemicals since its inception in 1989 and at present the company is one of the largest producers of Poly Iso Butene (PIB) in India.

Note 2: Excise Duty

Excise Duty on sales for the year has been 'disclosed as reduction' from the Turnover. Excise Duty relating to the difference between the closing stock and opening stock has been included in "other operating revenue under Note 18" for the current year.

Note 3: Commitments

Estimated amount of Contracts remaining to be executed on capital account for Rs.6.19 Lacs (Previous year Rs. 19.92 Lacs) Note 28 : Contigent Liability

Excise Duty demands against which the company has filed appeals and for which no provision is considered, as out come of appeals is not ascertainable at this stage is Rs.154.72 lacs. (Previous year Rs.154.72 lacs).

Note 4: Value of Raw Materials,Chemicals and Stores and Spares consumed

Note 5: Related Part Transactions:

Refer separate working on Related Party Transactions in Annexure - I at Page Nos. 67 - 68 Note 33: Earnings in Foreign Currency Realised During the year

Note 6: Employee Benefits:

Liability to existing employees of the company in respect of gratuity is covered under a common insurance policy administered by a Trust maintained for the participating enterprises viz. Kothari Sugars & Chemicals Limited (KSCL) and Kothari Petrochemicals Limited (KPL). The actuarial valuation is done by an independent external valuer under the projected unit credit method to ascertain the liability enterprise wise.The net defined benefit is recognised in the financial statement as a cost equal to their contribution payable estimated.

The company has recognised Rs.3.69 Lacs (previous year Rs.Nil) in the Statement of Profit & Loss for the year ended 31st March 2015.

Note 7: Segment reporting Segment Information :

a) The company has only one primary business segment that of Manufacturing Poly Iso Butene.

b) Secondary Reporting Segment (by Geographical Segment)

Note 8: Micro,Small and Medium Enterprises Development Act, 2006:

The company has not received information from vendors regarding their status under Micro, Small and Medium Enterprises Act, 2006, the disclosure relating to amounts unpaid as at the year end together with interest payable / paid under this Act have not been given.

Note 9: Operating Lease

A sum of Rs.137.09 Lacs (previous Year Rs.113.63 Lacs) has been debited to Rent account, being the rent paid on premises which has been taken on operating lease.

Note 10: Acknowledgement of Balances

Balances in Trade Receivables, Loans and Advances and Deposits include items which are in the process of confirmation and have, in the opinion of the management a value on realisation in the ordinary course of business at least equal to the amount at which they are stated. Trade Payables are stated at a value they are liable to be paid.

Note 11: Urban Land Tax

No provision is considered necessary towards Urban Land Tax for the Land in which Manali factory is situated pending disposal of a court case filed by the erstwhile owners and completion of process for registration of Land.

Note 12: Depreciation

The Company has changed the method of providing Depreciation from 1st April 2014 as required by Companies Act, 2013. Depreciation is hence provided in accordance with Schedule II for the current year as against the rates specified Schedule XIV to the companies Act,1956 adopted in the previous year. As a result Depreciation in the current year higher by Rs.24.50 lacs.

Further in respect of asets whose remaining useful life as prescribed in Schedule II to Companies Act 2013 is Nil, their carrying amounts as on 01st April 2014 after retaining the residual value aggregating to Rs.127.92 (excluding Deferred Tax Rs.43.48 lacs) has been taken to Reserves and Surplus.

Note 13: Previous Year Figures

Previous year figures have been regrouped / reclassified whereever necessary to correspond with current year's classifications / disclosure.

Related party disclosures - As identified by the Management and relied upon by the Auditors

(i) Parties with Significant influence (Direct and Indirect)

Promoter Company Kothari Sugars & Chemicals Ltd.

Holding Company BHK Trading Pvt. Ltd.

Company in Joint Control Kothari International Trading Ltd.

Company in Joint Control Santoor Commercials Pvt. Ltd.

Company in Joint Control Kothari Biotech Ltd.

Company in Joint Control Kothari Safe Deposits Ltd.

Company in Joint Control Century Foods Pvt. Ltd.

Company in Joint Control Parvathi Trading & Finance Co. Pvt. Ltd.

Company in Joint Control HCK NAPC Mines and Ores Pvt. Ltd.

Company in Joint Control Parasakthi Trading Co. Pvt. Ltd.

Affiliated Trust HCK Education and Development Trust

Wholly owned Subsidiary Kothari Petrochemicals Pte. Ltd., Singapore

Step down Subsidiary Kothari Petochemicals HK Ltd., Hong Kong

(ii) Key Management Personnel

Chairman Mr. B H Kothari (till 22nd February 2015)


Mar 31, 2014

Note 1: Excise Duty

Excise Duty on Sales for the year has been ''disclosed as reduction'' from the Turnover. Excise Duty relating to the difference between the closing stock and opening stock has been included in " other operating revenue under Note -19" for the current Year.

Note 2:

A. CORPORATE INFORMATION:

Kothari Petrochemcials Limited ( Company) was incorporated on 28th April, 1989. The Corporate Identification Number (CIN) is L11101TN1989PLC017347. The company is into manufacture of chemicals since its inception in 1989 and at present the company is one of the largest producers of premium quality Poly Isobutene in India.

Note 3: Commitments

Estimated amount of Contracts remaining to be executed on capital account for Rs. 19.92 Lacs (Previous year Rs. Nil)

Note 4: Contingent Liabilities

a. Bank guarantees Rs. 395.88 (Previous year. Rs. 383.58 Lacs)

b. Sales-tax and Excise Duty demands against which the Company has filed appeals and for which no provision is considered, as the outcome of the appeals is not ascertainable at this stage is Rs.154.72 lacs (Previous Year Rs. 157.88 lacs)

Note 5: Employee Beneits:

Liability to existing employees of the company in respect of gratuity is covered under a common insurance policy administered by a Trust maintained for the participating enterprises viz. Kothari Sugars & Chemicals Limited (KSCL) and Kothari Petrochemicals Limited (KPL). The actuarial valuation is done by an independent external valuer under the Projected Unit Credit method to ascertain the liability enterprise wise. The net defined benefit is recognized in the financial statement as a cost equal to their contribution payable estimated

The Company has recognized Rs. Nil amount (Previous Year Rs.6.94 Lacs) in the Statement of Profit & Loss for the Year ended 31st March, 2014.

Note 6: Micro, Small and Medium Enterprises Development Act, 2006:

The company has not received information from vendors regarding their status under Micro Small and Medium Enterprises Act 2006, the disclosures relating to amounts unpaid as at the year end together with interest payable / paid under this Act have not been given.

Note 7: Operating Lease

A sum of Rs. 113.63 lacs (Previous Year Rs.36.90 lacs) has been debited to Rent account, being the rent paid on premises which has been taken on operating lease.

Note 8: Earning Per Share

Net Profit after Tax for the year has been used as the numerator and number of Shares has been used as denominator for calculating the basic and diluted earning per Share.

Note 9: Acknowledgement of Balances

Balances in Trade Receivables, Loans and Advances and Deposits include items which are in the process of confirmation and have, in the opinion of the management a value on realisation in the ordinary course of business at least equal to the amount at which they are stated. Sundry Creditors are started at a value they are liable to be paid.

Note 10: urban Land Tax

No provision is considered necessary towards urban land tax for the land in which Manali factory is situated pending disposal of a court case filed by the erstwhile owners and completion of the Process for registration of land.

Note 11:

Previous Year''s figures have been regrouped / reclassified wherever necessary to correspond with current year''s classification / disclosure


Mar 31, 2013

A. CORPORATE INFORMATION:

Kothari Petrochemicals Limited (Company) was incorporated on 28*April, 1989. The Corporate Identification Number (CIN) is L11101TN1989PLC017347. The company is into manufacture of Chemicals since its inception in 1989, the company has been enjoying a strong market position in India with a rapidly growing brand across the globe that represents quality, customer responsiveness, dependability and a commitment to the environment and at present the company is one of the largest producers of premium quality Poly Iso butene in India.

Note 1: Excise Duty

Excise Duty on Sales for the year has been ''disclosed as reduction''from the Turnover. Excise Duty relating to the difference between the closing stock and opening stock has been included in Note-26 "Other Expenses" for the current year and in Note-19 "Other Operating Revenue" for the previous year.

Note 2: Commitments

Estimated amount of Contracts remaining to be executed on capital account for Rs.Nii (Previous Year Rs.Nil) Note 29: Contingent Liabilities

a. Bank guarantees Rs.383.58 Lacs (Previous year.Rs.328.44 Lacs)

b. Sales-tax and Excise Duty demands against which the Company has filed appeals and for which no provision is considered, as the outcome of the appeals is not ascertainable at this stage is Rs.157.88 Lacs (Previous Year Rs.157.88 Lacs)

Note 3: Value of Raw Materials, Chemicals and Stores and Spares consumed:

Note 4: Employee Benefits:

Liability to existing employees of the company in respect of gratuity is covered under a common insurance policy administered by a Trust maintained for the participating enterprises viz. Kothari Sugars & Chemicals Limited (KSCL) and Kothari Petrochemicals Limited (KPL). The Actuarially valued liabilityunderthe Projected Unit Credit method for the employees of the participating enterprise of the Trust is calculated enterprise wise. The net defined benefit is recognized in the financial statement as a cost equal to their contribution payable estimated.

Note 5: Segment Reporting Segment Information

a) Primary segment reporting (by Business Segments)

(i) The Company has considered business segment as the primary segment for disclosure these are:

(i) Poly Iso Butene (PIB)

(ii) Power Generation (Wind Mill)

Note 6: Micro, Small and Medium Enterprises Development Act, 2006:

The company has not received information from vendors regarding their status under Micro Small and Medium Enterprises Act 2006, the disclosures relating to amounts unpaid as at the year end together with interest payable / paid under this Act have not been given.

Note 7 Rental Income

Asum of Rs. 123.02 lacs (PreviousYear Rs.55.81 lacs) has been considered as rental Income from property pending finalization of Lease agreement.

Note 8: Operating Lease

A sum of Rs.36.90 lacs ( Previous Year Rs.32.80 lacs ) has been debited to Rent account, being the rent paid on premises which has been taken on operating lease.

Note 9: Earning Per Share

Net Profit after Tax for the year has been used as the numerator and number of Shares has been used as denominator for calculating the basic and diluted earning per Share.

Note 10: Discontinuing Operations

During the year, the power generation operations have been discontinued and Windmill was sold on 21st February, 2013 for Rs.915.50 lacs.

Note 11: Acknowledgement of Balances

Balances in Trade Receivables, Loans and Advances and Deposits includes items which are in the process of confirmation and have, in the opinion of the management a value on realisation in the ordinary course of business at least equal to the amount at which they are stated. Sundry Creditors are started at a value they are liable to be paid.

Note 12: Urban Land Tax

No provision is considered necessary towards Urban Land Tax for the land in which Manali factory is situated pending disposal of a court case filed by the erstwhile owners and completion of the process for registration of land.

Note 13: Previous Year''s figures have been regrouped / reclassified wherever necessary to correspond with current year''s classification / disclosure.


Mar 31, 2012

Note - 1 - Excise Duty

Excise Duty on Sales for the year has been 'disclosed as reduction' from the Turnover. Excise Duty relating to the difference between the closing stock and opening stock has been included in Note-20 "Other income" for the Current Year and in Note-26 "Other Expenses" for the previous year.

Note - 2 - Commitments

Estimated amount of Contracts remaining to be executed on Capital account and not provided for Rs. NIL (Rs.925 lacs)

Note - 3 - Contingent Liabilities

a. Bank guarantees Rs.328.44 Lacs (Previous year.Rs.318 Lacs)

b. Sales-Tax and Excise Duty demands against which the Company has filed appeals and for which no provision is considered, as the outcome of the appeals is not ascertainable at this stage Rs.157.88 lacs (Previous Year Rs.110.38 lacs)

Note - 4 Related Party Transactions:

Related party disclosures - As identified by the Management and relied upon by the auditors

(i) Parties with Significant influence (Direct and Indirect) (a) Promoter Company Kothari Sugars & Chemicals Limited

(b) Associate Company Kothari International Trading Limited

(c) Associate Company Kothari Safe Deposits Limited (d) Associate Company Century Foods Pvt. Limited

(e) Associate Company Parvathi Trading & Finance Co. Pvt. Limited

(ii) Key Management Personnel (a) Chairman & Managing Mr. B.H.Kothari Director

Note - 5 - Employee Benefits:

Liability to existing employees of the company in respect of gratuity is covered under a common insurance policy administered by a Trust maintained for the participating enterprises viz. Kothari Sugars & Chemicals Limited (KSCL) and Kothari Petrochemicals Limited (KPL). The Actuarially valued liability under the Projected Unit Credit method for the employees of the participating enterprise of the Trust is calculated enterprise wise. The net defined benefit is recognized in the financial statement as a cost equal to their contribution payable estimated. The Company has recognized Rs.3.73 lakhs (Previous Year Rs.6.66 lakhs) in the Statement of Profit & Loss for the Year ended 31st March, 2012. Accrued Liability towards Gratuity ascertained as per actuarial valuation is Rs.37.19 lacs which is covered by a common Insurance Policy reffered above.

Note - 6 - Micro, Small and Medium Enterprises Development Act, 2006:

The company has not received information from vendors regarding their status under Micro, Small and Medium Enterprises Act, 2006. The disclosures relating to amounts unpaid as at the year end together with interest payable/paid under this Act have not been given.

Note - 7 - Operating Lease

A sum of Rs.55.81 lacs (Previous Year Nil) has been recognized as rental Income from commercial property situated at Bengaluru pending finalization of Lease agreement.

Note - 8 - Acknowledgement of Balances

The Company has obtained confirmation of balances from all the banks and has sent confirmation of balances to Debtors and Creditors and responses have been received in a few cases.

Note - 9 - Urban Land Tax

No provision is considered necessary towards Urban Land Tax for the land in which Manali factory is situated pending disposal of a court case filed by the erstwhile owners and completion of the Process for registration of land.

Note - 10

The Revised Schedule VI has become effective from 1 April, 2011 for the preparation of financial statements. This has significantly impacted the disclosure and presentation made in the financial statements. Previous Year's figures have been regrouped/reclassified wherever necessary to correspond with current year's classification/ disclosure.


Mar 31, 2010

1. Acknowledgement of balances

The Company has obtained confirmation of balances from all the banks and has sent letter of request for confirmation of balances to Debtors and Creditors and replies have been received in a few cases.

2. Contingent Liabilities

a. Estimated amount of Contracts remaining to be executed on Capital account & not provided for amount to Rs. Nil (Rs.Nil )

b. Bank guarantees Rs. 318 lacs (Previous year.Rs.100 lacs)

c. Excise demand under appeal Rs.82.08 lacs.

3. The company has not received information from vendors regarding their status under Micro Small and Medium Enterprises Act 2006, the disclosures relating to amounts unpaid as at the year end together with interest payable/paid under this Act have not been given.

4. CIF Value of Imports : Nil

5. The Goodwill of Rs.753 lakhs arising out of the merger effective from 1st April 2006 of PTPL with the company is being amortized over a period of five years with effect from 1st April 2006 in equal install- ments. During the Year Rs.150.60 lakhs amortized being fourth Year.

6. No provision is considered necessary towards urban land tax for the land in which Manali factory is situated pending disposal of a court case filed by the erstwhile owners and completion of the process for registration of land.

7. Employee benefits

Liability to existing employees of the company in respect of gratuity is covered under a common insur- ance policy in favour of Kothari Sugars & Chemicals Gratuity Trust. The cumulative liability of the employees is actuarially valued by the trust under projected unit credit method. Investments available for policy and contribution being effected are adequate to cover the liability of the employees.

8. Previous year figures have been regrouped and rearranged wherever necessary to Confirm to the classification for the year.


Mar 31, 2000

1. Estimated value of contracts remaining to be executed on capital account and not provided for Rs.5,21,904/-(Rs.11,76,104)

2. Contingent liability on account of Bank Guarantee Rs.53.70 Lacs (Rs.53.10 Lacs)

3. Outstanding letters of credit for import of spares Rs.9.85 Lacs (Rs. 1.21. Lacs)

4. Future lease rental commitments Rs.91,77,862/- (Rs.1,43,81,996/-)

5. The balances in debtors, advances and sundry creditors have been circularised and replies are awaited. Loans and Advances include Rs.14,43,750/-covered by court cases. In the opinion of the Board the current assets, loans & advances will realise at least the values stated in the accounts.

6. Due by Manager- Rs.NIL (Rs.32,627)

Maximum amount outstanding at any time during the year Rs.32,627/- (Rs.75,827)

7. Sundry Creditors include Rs.10,03,502/-due to Small Scale and ancillary undertakings to the extent such parties have been identified by the management and relied upon by Auditors. The Company has normally made payments to SSI units in due time and also there being no claim from the parties, interest if any on overdue payments is unascertainable and thus not provided for. The names of SSI units to whom amounts of Rs.1 Lakh and above are due for more than 30 days are given below:

Ellak Chem Industries

Prem Chemical Industries

Shiva Alkaline Chemicals

8. Expenditure in foreign currency during the year on account of foreign travel was Rs.1,03,1167- (Rs.2,17,630)

9. The post of the Secretary which fell vacant on 30.04.2000 has not yet been filled up under Section 383 A of the Companies Act 1956.

10. Figures in brackets relate to previous year.

11. Previous years figures have been regrouped wherever necessary to conform to the classification for the year.

 
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