Home  »  Company  »  Meghmani Organics Lt  »  Quotes  »  Notes to Account
Union Budget 2017-18
Enter the first few characters of Company and click 'Go'

Notes to Accounts of Meghmani Organics Ltd.

Mar 31, 2016

The Company has only one class of Equity Shares having face value of Rs, 1/– per share. Each Equity shareholder has 1 voting right. All equity shareholders have equal dividend rights in proportion to their Capital.

The Company has paid Interim dividend of Rs, 0.30 Per Equity Share amounting to Rs, 7,62,94,263 on 25,43,14,211 Equity Shares of Rs, 1/– each (Previous Year Interim dividend of Rs, 0.40 per Equity Share was paid amounting to Rs, 10,17,25,684 on 25,43,14,211 Equity Shares of Rs, 1/– each). The Interim dividend is considered as Final Dividend.

Details of Security and Repayment Terms :

i Rupee Term Loan facility of Rs, 30,00,00,000 from HDFC Bank, Nr. Mithakhali Cross Road, Ahmadabad. The facility is Secured by First Pari Passu charge with ICICI Bank Limited on moveable and immoveable fixed assets held at Z–31 and Z–32, Dahej SEZ Limited, Dahej, Taluka Vagra, District Bharuch and repayable in 20 quarterly installments of Rs, 1,50,00,000 each commencing from 30th April, 2016 and interest @ base rate plus 1.75% per annum with monthly rests. At present interst rate is 11.75% with moratorium of 2 years.

ii Rupee Term Loan facility of Rs, 45,00,00,000 from ICICI Bank Limited, JMC House, Ambawadi, Ahmadabad. The facility is Secured by First Pari Passu charge with HDFC Bank on moveable and immoveable fixed assets held at Z–31 and Z–32, Dahej SEZ Limited, Dahej, Taluka Vagra, District Bharuch and repayable in 24 quarterly installments of Rs, 1,87,50,000 each commencing from 30th June, 2016 and interest @ base rate plus 2.10% per annum with monthly rests. At present interest rate is 12.10% with moratorium of 2 years. During the year, the Company has prepaid the loan on 29th December, 2015.

iii Rupee Term Loan facility of Rs. 65,00,00,000 from Yes Bank Limited 4th Floor, Nehru Centre, Discovery of India Bldg, Dr. A. B. Road, Worli, Mumbai– 400018. The facility is secured by exclusive charge on leasehold admeasuring 50,000 Square Meter bearing Plot No. CH–1 2/A GIDC Industrial Estate Dahej, Taluka Vagra, District Bharuch, with all the buildings and structures standing thereon and all plants, machineries, fixtures and fittings attached to the earth and or permanently fastened to earth pertaining to Company''s unit at Plot No. CH–1 2/A GIDC and repayable in 20 equal quarterly installments of Rs, 3,25,00,000 starting after a moratorium period of 1 year from the date of disbursement i.e. from 02.10.2015 The current applicable interest rate is 11.75% p.a. During the year, the Company has prepaid the loan on 07th December, 2015.

iv The Term Loan facility of Rs, 1,06,75,00,000 from State Bank of India, Corporate Accounts Group Branch, 58, Shrimali Society, Ahmadabad, is secured by Agreement of Hypothecation of Goods and Assets dated 30.11.2015. The facility is secured by first charge on all the Company''s movable fixed assets at (a) Agro Division III plant at Plot No. CH-1 2/A, GIDC Dahej, Taluka Vagra, District–Bharuch 392130 and (b) Pigment Blue Division at Plot No. Z–31, Z–32, Dahej SEZ Limited, Dahej, Taluka Vagra, District Bharuch. The current effective rate is 10% p. a. on floating basis with monthly rests. The Term Loan will be repaid in 26 quarterly installments starting from 31st December, 2015 and on 31st March 2022. The details are as under.

1. Two quarterly installments of Rs, 3,25,00,000 each starting from 31.12.2015

2. Seventeen quarterly installments of Rs, 5,12,50,000 each starting from 30.06.2016

3. Seven quarterly installments of Rs, 1,87,50,000 each starting from 30.09.2020

i The interest rate on working capital facilities from State Bank of India, HDFC Bank Limited, Standard Chartered Bank and ICICI Bank Limited (Collectively known as Consortium Bankers) varies within the range of 10.90% to 13.00% (both inclusive) and are secured by :–

(a) First Pari Passu charge created on 9th October, 2003 for Rs, 79.45 Crores was further extended on 28th May 2005 for Rs, 155.35 Crores, on 23rd January, 2007 for Rs, 218.65 Crores and on 28th August, 2009 for Rs, 343.08 Crores in favour of State Bank of India and its Consortium Bank by way of hypothecation of the entire stock of raw materials, work in process, finished goods, stores and spares and receivables. The present consortium is lead by State Bank of India, with ICICI Bank and HDFC Bank.

(b) First Pari Passu charge on immovable fixed assets to State Bank of India and its consortium bank as collateral security for the working capital facilities of Rs, 343.08 Crores. The present consortium is lead by State Bank of India.

(c) The indenture of the mortgage created on immovable properties are located at :

(i) Plot No. 168,180,183 and 184 of GIDC Industrial Estate Vatva, Ahmedabad.

(ii) Block No. 402,403,404 and 452 at Village Chharodi, Taluka Sanand, District Ahmedabad.

(iii) Plot No. 21 & 21/1 of GIDC Industrial Estate Panoli, Taluka Ankleshwar, Bharuch.

(iv) Plot No.5001/B of GIDC Industrial Estate, Ankleshwar, Bharuch.

ii During the year, unsecured outstanding short term loan of Rs, 10,00,00,000 of HDFC Bank Limited has been has paid by the Company on 11.05 2015.

Notes : –

i The Company has called for balance confirmation of Creditors on random basis. Out of which the Company has received response from some of the parties, which are Subject to reconciliation with Company''s account. The other balances of Creditors are subject to confirmation.

ii The Company has received certain intimation from "Suppliers" regarding their status under the Micro, Small and Medium Enterprises Development Act, 2006 (MSMED) and accordingly the Company has provided for interest of Rs, 2,13,40,655 (Previous Year Rs, 1,34,55,997) being payable as required under the said act.

Notes : –

Details of Security and Repayment Terms :

i Secured Non–Convertible Debentures of Rs, Nil (Previous Year Rs, 50,00,00,000) were secured by way of pari passu charge on Mortgage of immovable and movable properties situated at GIDC Vatva, GIDC Panoli, GIDC Ankleshwar and Village Chharodi, Taluka Sanand, District – Ahmedabad.

ii Redemption detail of 10.40 % Non Convertible Debentures Rs, 50,00,00,000

Notes –

i The Advance of Rs, 6,00,00,000 given to Latasha Export Limited has now been treated as Investment. These investments are carried at cost to the Company and are accounted for in accordance with Accounting Standard (AS) 13 Accounting for Investment in the Financial Statement.

ii The Company had made assessment of fair value of investment in its Wholly Owned Subsidiary Meghmani Europe BVBA and taken into account the past business performances and prevailing condition and as a matter of prudence has written off diminution in carrying value of investments of Rs, 8,11,43,713 to the Statement of Profit and Loss as an exceptional item.

i Trade Receivables exceeding six months Includes Rs, 1,42,77,348 (Previous Year: Rs, 2,81,25,729) due from Subsidiary Company and Rs, 10,19,177 (Previous Year : Rs, Nil) due from Firm or a Company in which some of the Directors are interested.

ii Trade Receivables Others Includes Rs, 23,16,26,615 (Previous Year: Rs, 42,80,38,748) due from Subsidiary Company and Rs, 5,38,74,091 (Previous Year: Rs, 78,62,049) due from Firm or a Company in which some of the Directors are interested.

iii The Company has called for balance confirmation of Trade Receivables on random basis. Out of which the Company has received response from some of the parties, which are subject to reconciliation with Company''s account. The other balances of Trade Receivables are subject to confirmation.

Notes

i The Current Account balance includes unpaid dividend of Rs, 22,48,800 (Previous Year Rs, 35,58,190) which have been kept in separate earmarked accounts and no transactions except for the stated purpose are done through such accounts

ii Fixed Deposit with banks is due within one year and held as margin money Rs, 38,69,850 (Previous Year Rs, 32,84,529) and Fixed Deposit Rs, 7,50,00,000 (Previous Year Rs, 7,62,23,438) as lien with Standard Chartered Bank.

Notes

i Excise Duty expenses includes Rs, 3,11,18,068 being increase (Previous Year Rs, 1,47,16,539 decrease) pertains to variation in opening and closing stock of finished goods.

ii The Company has operating lease from various premises which are renewable on a periodic basis and cancellable at its option. Rental expenses for operating leases charged to Statement of Profit and Loss for the year Rs, 67,89,152 (Previous Year: Rs, 81,32,882) pertains to not later than 1 year.

Exceptional Item consists of Diminution of investment in Subsidiary Meghmani Europe BVBA (Refer Note – 12 (i)) Previous Year Exceptional Item consists of Profit on Sale of Land at GIDC Ankleshwar and Loss on Sale of Long term Investment in Subsidiary – Meghmani Energy Limited.

Investment written off includes investment in (i) Joint Venture – Triance Specility Chemicals Private Limited and (ii) Subsidiary – Meghmani Chemtech Limited.

1. EMPLOYEE BENEFITS – AS 15

As per revised Accounting Standard 15 (AS–15) "Employees Benefits" , the Company has recognized in the financial statements in respect of Employee Benefits Schemes as per Actuarial Valuation as on 31st March 2016

(B) Defined Contribution Plans

Amount recognized as expenses on account of "Contribution / Provision to and for Provident and other Funds" of Statement of Profit and Loss Rs,1,35,35,596 (Previous Year Rs, 1,13,01,970)

2. SEGMENT REPORTING

For Management purpose, the Company is currently organized into two major operating divisions – Pigments and Agro Chemicals. These divisions are the basis on which the Company reports its primary segment information.

Principal activities are as follows:

Pigment Business

To Manufacture and Sales of Phthalocynine Green 7, Copper Phthalocynine Blue (CPC), Alpha Blue and Beta Blue.

Agrochemicals Business

To Manufacture and Sales of Technical, Intermediates and Formulations of Insecticides.

(a) Analysis By Business Segment

Segment Revenue and Expense:

Segment revenue and expense are the operating revenue and expense reported in the Company''s Statement of profit and loss that are directly attributable to a segment and the relevant portion of such revenue and expense that can be allocated on a reasonable basis to a segment.

Segment Assets and Liabilities:

Segment assets include all operating assets used by a segment and consist principally of operating receivables, inventories and property, plant and equipment, net of allowances and provisions. Capital Expenditure includes the total cost incurred to acquire property, plant and equipment directly attributable to the segment. Segment liabilities include all operating liabilities and consist principally of trade payables and accrued expenses.

Inter–segment transfers:

Segment revenue and expenses include transfers between business segments. Inter–segment sales are charged at prevailing market rates. These transfers are eliminated at the Company level.

(c) Segment Assets and Capital expenditure :

Segment Assets and Capital expenditure are analyzed based on the location of those assets. Capital expenditure includes the total cost incurred to purchase property, plant and equipment.

An analysis of the carrying amount of segment assets and capital expenditure by geographical locations is not presented, as the assets are all located in India.

3. RELATED PARTIES DISCLOSURES :–

- Holding Company : Nil

- Subsidiaries of the Company : Meghmani Organics USA, Inc.(MOL–USA)

Meghmani Europe BVBA(MOL–EUROPE)

PT Meghmani Organics Indonesia(MOL–INDONESIA)

Meghmani Overseas FZE–Dubai

Meghmani Finechem Limited (MFL)

- Associates : Latasha Exports Limited

- Enterprises in which Key Managerial : Meghmani Pigments

Personnel [KMP] & their relatives have

Ashish Chemicals

significant influence

Tapsheel Enterprise

Meghmani Infrastructures

Meghmani Dyes & Intermediates LLP

Meghmani Industries Limited

Meghmani Chemicals Limited

Vidhi Global Chemicals Limited

Panchratna Corporation

Meghmani LLP

Matangi Industries LLP

Diamond Engineering Co.

Delta Electricals

- Key Managerial Personnel : Mr. Jayanti Patel

Mr. Ashish Soparkar Mr. Natwarlal Patel Mr. Ramesh Patel Mr. Anand Patel

- Relatives of Key Managerial : Ms. Deval Soparkar

Personnel (Employee)

Mr. Karana Patel

Mr. Ankit Patel

Mr. Darshan Patel

Mr. Maulik Patel

Mr. Kaushal Soparkar

- Relative of Key Managerial Personnel : Ms.Taraben Patel

4. DISCLOSURES ON FINANCIAL DERIVATIVES (AS–30)

The Company uses derivative financial instruments such as Forwards, Swaps and Options to hedge its risks associated with foreign exchange fluctuations. The Company uses Interest Rate Swaps specifically to protect against Interest Rate Volatility on the floating rate External Commercial Borrowings (ECBs). It also uses Cross Currency Swaps to protect against foreign currency exchange rate as well as interest rate fluctuations on its foreign currency loans. Swaps and Forwards are also used to hedge the currency risk inherent in the settlement of the liabilities denominated in foreign exchange.

For derivative financial instruments and foreign currency monetary items designated as Cash Flow hedges, the effective portion of the fair value of the derivative financial instruments are recognized in Hedge Reserve and reclassified to Statement of Profit and Loss as per guidance in AS 30. Hedge reserves have been debited to the extent of Rs, 2,27,99,437 during the financial year 2015-16 (credited during financial year 2014-15 Rs, 18,01,86,501). During the financial year 2015–16 Rs, 8,59,49,793 has been recycled from the reserves and debited to the Statement of Profit and Loss (during financial year 2015-16 Reserves was debited to the extent of Rs, 5,61,39,959 and credited to Statement of Profit and Loss).

The ineffective portion of the change in fair value of such instruments is recognized in the Profit and Loss in the period in which they arise. The various cash flows with reference to the hedged items and the hedging instruments are expected to occur over the coming years and are expected to affect the Statement of Profit and Loss Account over the same period of time. If the hedging relationship ceases to be effective or it becomes probable that the expected transaction will no longer occur, hedge accounting is discontinued and the fair value changes arising from the derivative financial instruments are recognized in Statement of Profit and Loss.

In line with the Company''s risk management policy, the various financial risks mainly relating to changes in the exchange rates and interest rates are hedged by using a combination of forward contracts, swaps and other derivative contracts, besides the natural Hedges.

B The estimated amount of contracts remaining to be executed on capital accounts of Rs,1,70,50,232 (Previous Year: Rs, 1,19,74,608) is not provided for.


Mar 31, 2015

(1) Figures in brackets indicate cash outgo.

(2) The previous year figures have been regrouped/restated where ever necessary to conform to this year's classification.

3 EMPLOYEE BENEFITS - AS 15

As per revised Accounting Standard 15 (AS-15) "Employees Benefits" , the Company has recognized in the financial statements in respect of Employee Benefits Schemes as per Actuarial Valuation as on 31st March 2015

(A) Defined Benefit Plans

I. Components of Employer Expenses

The estimates of future salary increases, considered in actuarial valuation, take account of inflation, seniority, promotion and other relevant factors, such as supply and demand in the employment market VI Major Categories of plan assets as a percentage of total plan assets

(A) Defined Contribution Plans

Amount recognised as expenses on account of "Contribution / Provision to and for Provident and other Funds" of Statement of Profit and Loss - Rs. 1,13,01,970/- (Previous year Rs. 85,32,807/-)

31. SEGMENT REPORTING

For Management purpose, the Company is currently organised into two major operating divisions - Pigments and Agro Chemicals. These divisions are the basis on which the Company reports its primary segment information.

Principal activities are as follows:

Pigment Business

To Manufacture and distribute Phthalocynine Green 7, Copper Phthalocynine Blue (CPC), Alpha Blue and Beta Blue. Agrochemicals Business

To Manufacture and sales of Technical, Intermediates and Formulations of Insecticides.

(a) Analysis By Business Segment Segment revenue and expense:

Segment revenue and expense are the operating revenue and expense reported in the Company's Statement of profit and loss that are directly attributable to a segment and the relevant portion of such revenue and expense that can be allocated on a reasonable basis to a segment.

Segment Assets and Liabilities:

Segment assets include all operating assets used by a segment and consist principally of operating receivables, inventories and property, plant and equipment, net of allowances and provisions. Capital Expenditure includes the total cost incurred to acquire property, plant and equipment directly attributable to the segment. Segment liabilities include all operating liabilities and consist principally of trade payables and accrued expenses.

Inter-segment transfers:

Segment revenue and expenses include transfers between business segments. Inter-segment sales are charged at prevailing market rates. These transfers are eliminated at the Company level.

'Others includes trading activity and Power generation (b) Analysis By Geographical Segment Segment Revenue:

Segment revenue is analysed based on the location of customers regardless of where the goods are produced. The following provides an analysis of the Company's sales by geographical Markets:

( c ) Segment Assets and Capital expenditure :

Segment Assets and Capital expenditure are analysed based on the location of those asstes. Capital expenditure includes the total cost incurred to purchase property, plant and equipment.

An analysis of the carrying amount of segment assets and capital expenditure by geographical locations is not presented, as the assets are all located in India.

4 RELATED PARTIES DISCLOSURES :-

- Holding Company : Nil

- Subsidiaries of the company : Meghmani Organics USA, Inc.(MOL-USA) Meghmani Europe BVBA(MOL-EUROPE) PT Meghmani Organics Indonesia (MOL-INDONESIA) Meghmani Overseas FZE-Dubai Meghmani Energy Limited (MEL)* Meghmani Finechem Limited (MFL) Meghmani Chemtech Limited (MCTL)*

- Enterprises in which Key : Meghmani Pigments Managerial Personnel [KMP] & Ashish Chemicals their relatives have significant influence Tapsheel Enterprise Meghmani Infrastructures Meghmani Dyes & Intermediates Pvt Ltd Meghmani Industries Limited Meghmani Chemicals Limited Fidelity Exports Private Limited Vidhi Global Chemicals Limited Vanguard Overseas Limited Panchratna Corporation Meghmani Unichem LLP Matangi Industries Meghmani Industries Limited - SEZ Unit Diamond Engineering Co. Delta Electricals

- Key Managerial Personnel : Mr. Jayanti M Patel Mr. Ashish N Soparkar Mr. Natwarlal M Patel Mr. Ramesh M Patel Mr. Anand I Patel

- Relatives of Key Managerial : Ms. Deval Soparkar Personnel (Employee) Mr. Karana R Patel Mr. Ankit N Patel Mr. Darshan Patel

- Relative of Key Managerial : Taraben J Patel Personnel

- Joint Venture : Trience Speciality Chemicals Private Limited*

Ceased to be subsidiary and joint venture as on 31st March 2015.

5. DISCLOSURES ON FINANCIAL DERIVATIVES (AS-30)

The Company uses derivative financial instruments such as Forwards, Swaps and Options to hedge its risks associated with foreign exchange fluctuations. The Company uses Interest Rate Swaps specifically to protect against Interest Rate Volatility on the floating rate External Commercial Borrowings (ECBs). It also uses Cross Currency Swaps to protect against foreign currency exchange rate as well as interest rate fluctuations on its foreign currency loans. Swaps and Forwards are also used to hedge the currency risk inherent in the settlement of the Liabilities denominated in foreign exchange

For derivative financial instruments and foreign currency monetary items designated as Cash Flow hedges, the effective portion of the fair value of the derivative financial instruments are recognized in Hedge Reserve and reclassified to Statement of Profit and Loss as per guidance in AS 30. Hedge reserves have been credited to the extent of Rs. 18,01,86,501/-during the financial year 2014-15 (Debited during financial year 2013-14Rs.12,82,48,806/-). During the financial year 2014-15Rs.5,61,39,959/-has been recycled from the Reserves and credited to the Statement of Profit and Loss (during financial year 2013-14Rs.9,40,84,074/- was debited to Statement of Profit and Loss).

The ineffective portion of the change in fair value of such instruments is recognised in the Profit and Loss in the period in which they arise. The various cash flows with reference to the hedged items and the hedging instruments are expected to occur over the coming years and are expected to affect the Statement of Profit and loss account over the same period of time. If the hedging relationship ceases to be effective or it becomes probable that the expected transaction will no longer occur, hedge accounting is discontinued and the fair value changes arising from the derivative financial instruments are recognized in Statement of Profit and Loss.

In line with the Company's risk management policy, the various financial risks mainly relating to changes in the exchange rates and interest rates are hedged by using a combination of forward contracts, swaps and other derivative contracts, besides the natural Hedges.

( A ) Particulars of the derivative contracts entered into for hedging purpose outstanding as on reporting date are as under:

6 CONTINGENT LIABILITIES and COMMITMENTS A NOT PROVIDED FOR IN THE ACCOUNTS

PARTICULARS (Figures in Rs) As at As at 31st March 2015 31st March 2014

In respect of Bank Guarantee 12,56,61,282 12,90,18,599

In respect of Letter of Credit 32,65,19,275 22,76,19,135

In respect of Corporate Guarantee 1,05,35,71,375 1,79,08,00,017

Name of Statute Nature of Dues (Figures in Rs) As at 31st As at 31st March 2015 March 2014

Income Tax Act. Income Tax / Penalty for 5,82,12,413 6,45,90,593 Various Financial Year 2000-2001,2002-2003 to 2008-2009

Central Excise Tariff Act. Excise Duty/ Penalty/ Interest 3,87,26,873 3,87,26,873

Service Tax Service Tax/ Penalty/ Interest 3,10,75,189 2,81,86,979

Labour Laws Compensation Claims 1,76,44,659 1,76,65,351

Value Added Tax Input Tax Credit 2,29,13,312 2,29,13,312



Name of Statute Forum where Dispute is pending

Income Tax Act. Commissioner of Income Tax (Appeal) / Income Tax Applicant Tribunal / High Court.

Central Excise Commissioner of Central Excise / Director General Tariff Act. of Central Excise /Audit team of Central Excise / Central Excise Service tax Appellate Tribunal

Service Tax Commissioner of Central Excise / Deputy Commissioner of Central Excise / Central Excise Services Tax Appellate Tribunal

Labour Laws Labour Court

Value Added Tax The Joint Commercial Tax Commissioner Appeal 1



B The estimated amount of contracts remaining to be executed on capital accounts of Rs. 1,19,74,608 (Previous Year: Rs. 4,58,93,008) is not provided for.


Mar 31, 2014

The Company has only one class of Equity Shares having a par value of Rs. 1/- per share. Each equity shareholder has 1 voting right. All equity shareholders have equal dividend rights in proportion to the holding.

The Company has declared dividend of Rs. 0.10 Per Equity share amounting to Rs. 2,54,31,421,On 25,43,14,211 shares of Rs. 1/- each (Previous Year Rs. 0.10/- Per Equity share amounting to Rs. 2,54,31,421 on 25,43,14,211 share of Rs. 1/- each.)

1 LONG TERM BORROWINGS

1 Secured Non-Convertible Debentures of Rs. 100,00,00,000/- are secured by way of pari passu charge on Mortgage of immovable and movable properties situated at GIDC Vatva, GIDC Panoli, GIDC Ankleshwar and Village Chharodi, Taluka Sanand, District - Ahmedabad.

2 External Commercial Borrowing of USD 1,10,00,000 equivalent to Rs. 51,13,90,000 from Standard Chartered Bank, Ahmedabad.The facility is secured by First charge on all the present and future movable fixed assets financed under term loan including moveable fixed assets held at CH-1-2/A. GIDC Dahej,Taluka Vagra, Bharuch and repayable in 13 Quarterly Installment amount of USD 7,85,400 of each & last Instalment of USD 7,89 800 and interest @3 Month LIBOR 2.5%.

3 Rupee Term Loan facility of Rs. 300,000,000 from HDFC Bank, Nr. Mithakhali Cross Road, Ahmedabad. The facility is Secured by First Pari Passu charge with ICICI Bank Limited on moveable and immoveable fixed assets held at Z-31 and Z- 32, Dahej SEZ Limited, Dahej, Taluka Vagra, District Bharuch and repayable in 20 Quarterly installments of INR 15,000,000 each commencing from 30th April, 2016 and interest @ base rate plus 1.75% per annum with monthly rests. At present interest rate is 11.75% with moratorium of 2 years.

4 Rupee Term loan facility of Rs. 450,000,000 from ICICI Bank Limited, JMC House, Ambawadi, Ahmedabad. The facility is Secured by First Pari Passu charge with HDFC Bank on moveable and immoveable fixed assets held at Z-31 and Z-32, Dahej SEZ Limited, Dahej, Taluka Vagra, District Bharuch and repayable in 24 Quarterly installments of INR 18,750,000 each commencing from 30th June, 2016 and interest @ base rate plus 2.10% per annum with monthly rests. At present interst rate is 12.10% with moratorium of 2 years.

i The interest rate on working capital facilities from State Bank of India, HDFC Bank Limited, Standard Chartered Bank and ICICI Bank Limited (Collectively known as Consortium Bankers) varies within the range of 10.90% to 14.00% (both inclusive) and are secured by :- (a) First Pari Passu charge created on 9th October, 2003 for Rs. 79.45 Crore was further extended on 28th May 2005 for Rs. 155.35 Crore, on 23rd January, 2007 for Rs. 218.65 Crore and on 28th August, 2009 for Rs. 343.08 Crore in favour of State Bank of India and its Consortium Bank by way of hypothecation of the entire stock of raw materials, work in process, finished goods, stores and spares and receivables. The present consortium is lead by State Bank of India.

(b) First Pari Passu charge on immovable fixed assets to State Bank of India and its consortium bank as collateral security for the working capital facilities of Rs. 343.08 Crore. The present consortium is lead by State Bank of India.

(c) The indenture of the mortgage created on immovable properties are located at :

(i) Plot No. 168,180,183 and 184 of GIDC Industrial Estate Vatva, Ahmedabad.

(ii) Block No. 402,403,404 and 452 at Village Chharodi, Taluka Sanand, District Ahmedabad.

(iii) Plot No. 21 & 21/1 of GIDC Industrial Estate Panoli, Taluka Ankleshwar.

(iv) Plot No.5001/B of GIDC Industrial Estate, Ankleshwar.

ii Unsecured Short Term loan of Rs. 60,00,00,000 has been sanctioned by HDFC Bank Limited. The outstanding Short Term

Loan as on 31st March, 2014 is Rs. 42,00,00,000 comprising of three short term loans of Rs. 15,00,00,000 Rs. 17,00,00,000 and Rs. 10,00,00,000 for 90 days availed on 13th January, 2014, 24th January, 2014 and 14th February, 2014 respectively, with interest rate ranging from 10.50% per annum to 10.70% per annum.

5 EMPLOYEE BENEFITS - AS 15

As per revised Accounting Standard 15 (AS-15) "Employees Benefits", the Company has recognized in the financial statements in respect of Employee Benefits Schemes as per Actuarial Valuation as on 31st March 2014

(A) Defined Contribution Plans

Amount recognised as expenses on account of "Contribution / Provision to and for Provident and other Funds" of Statement of Profit and Loss - Rs. 85,32,807/- (Previous year Rs. 73,45,584/-)

6. SEGMENT REPORTING

For Management purpose, the Company is currently organised into two major operating divisions – Pigments and Agro Chemicals. These divisions are the basis on which the Company reports its primary segment information.

Principal activities are as follows:

Pigment division

To Manufacture and distribute Phthalocynine Green 7, Copper Phthalocynine Blue (CPC), Alpha Blue and Beta Blue.

Agrochemicals division

To Manufacture and distribute Technical, Intermediates and Formulations of Insecticides.

(a) Analysis By Business Segment

Segment revenue and expense:

Segment revenue and expense are the operating revenue and expense reported in the Company''s Statement of profit and loss that are directly attributable to a segment and the relevant portion of such revenue and expense that can be allocated on a reasonable basis to a segment.

Segment assets and liabilities:

Segment assets include all operating assets used by a segment and consist principally of operating receivables, inventories and property, plant and equipment, net of allowances and provisions. Capital Expenditure includes the total cost incurred to acquire property, plant and equipment directly attributable to the segment. Segment liabilities include all operating liabilities and consist principally of trade payables and accrued expenses.

Inter-segment transfers:

Segment revenue and expenses include transfers between business segments. Inter-segment sales are charged at prevailing market rates. These transfers are eliminated at the Company level.

(c) Segment assets and capital expenditure :

Segment assets and capital expenditure are analysed based on the location of those asstes. Capital expenditure includes the total cost incurred to purchase property, plant and equipment.

An analysis of the carrying amount of segment assets and capital expenditure by geographical locations is not presented, as the assets are all located in India.

7 RELATED PARTIES DISCLOSURES :-

Holding Company : Nil

Subsidiaries of the company :

Meghmani Organics USA, Inc.(MOL-USA)

Meghmani Europe BVBA(MOL-EUROPE)

PT Meghmani Organics Indonesia(MOL-INDONESIA)

Meghmani Overseas FZE-Dubai

Meghmani Energy Limited (MEL)

Meghmani Finechem Limited (MFL)

Meghmani Chemtech Limited (MCTL)

Enterprises in which Key

Managerial Personnel [KMP] & their relatives have significant influence

Meghmani Pigments

Ashish Chemicals

Tapsheel Enterprise

Meghmani Infrastructures

Meghmani Dyes & Intermediates Limited

Meghmani Industries Limited

Meghmani Chemicals Limited

Fidelity Exports Private Limited

Vidhi Global Chemicals Limited

Vanguard Overseas Limited

Panchratna Corporation

Meghmani Unichem LLP

Alpanil Industries

Matangi Industries

Meghmani Industries Limited - SEZ Unit

Key Managerial Personnel

Mr. Jayanti M Patel Mr. Ashish N Soparkar Mr. Natwarlal M Patel Mr. Ramesh M Patel Mr. Anand I Patel

Relatives of Key Managerial Personnel (Employee)

Ms. Deval Soparkar

Mr. Maulik J Patel

Mr. Kaushal Soparkar

Mr. Karana R Patel

Mr. Ankit N Patel

Mr. Darshan Patel

Relatives of Key Managerial Personnel (Consultant)

Mr. K M Patel

Mr. Saurabh Soparkar

Joint Venture

Trience Speciality Chemicals Private Limited

8. DISCLOSURES ON FINANCIAL DERIVATIVES (AS-30)

The Company uses derivative financial instruments such as Forwards, Swaps and Options to hedge its risks associated with foreign exchange fluctuations. The Company uses Interest Rate Swaps specifically to protect against Interest Rate Volatility on the floating rate External Commercial Borrowings (ECBs). It also uses Cross Currency Swaps to protect against foreign currency exchange rate as well as interest rate fluctuations on its foreign currency loans. Swaps and Forwards are also used to hedge the currency risk inherent in the settlement of the Liabilities denominated in foreign exchange.

For derivative financial instruments and foreign currency monetary items designated as Cash Flow hedges, the effective portion of the fair value of the derivative financial instruments are recognized in Hedge Reserve and reclassified to Statement of Profit and Loss as per guidance in AS 30. Hedge Reserves have been debited to the extent of Rs. 12,82,48,806/- during the financial year 2013-14 (during financial year 2012-13 Rs. 4,61,99,399/-). During the financial year 2013-14 Rs. 9,40,84,074/- has been recycled from the reserves and debited to the Statement of Profit and Loss (during financial year 2012-13 Rs. 9,09,20,514/- was credited to Statement of Profit and Loss).

The ineffective portion of the change in fair value of such instruments is recognised in the Profit and Loss in the period in which they arise. During the financial year 2013-14 Rs. NIL (during financial year 2012-13 Rs. NIL) was charged to Profit and Loss being the ineffectiveness portion of the effective hedging instrument. The various cash flows with reference to the hedged items and the hedging instruments are expected to occur over the coming years and are expected to affect the Statement of Profit and Loss Account over the same period of time. If the hedging relationship ceases to be effective or it becomes probable that the expected transaction will no longer occur, hedge accounting is discontinued and the fair value changes arising from the derivative financial instruments are recognized in Statement of Profit and Loss.

In line with the Company''s risk management policy, the various financial risks mainly relating to changes in the exchange rates and interest rates are hedged by using a combination of forward contracts, swaps and other derivative contracts, besides the natural Hedges.

9 CONTINGENT LIABILITIES and COMMITMENTS A NOT PROVIDED FOR IN THE ACCOUNTS

PARTICULARS (Figures in Rs.)

As at As at 31st March 2014 31st March 2013

In respect of Bank Guarantee 129,018,599 113,140,173

In respect of Letter of Credit 227,619,135 57,524,892

In respect of Corporate Guarantee 1,790,800,017 1,878,550,000

B The estimated amount of contracts remaining to be executed on capital accounts of Rs. 4,58,93,008/- (Previous Year: Rs. 11,17,48,008/-) is not provided for.

10 Excise duty Expenses of Rs. 20,81,43,514/- includes Rs. 11,90,23,658/- towards differential excise duty and Rs. 5,49,78,587/- towards Interest there on. During the year Revenue Department recovered the said differential duty on DTA sales for the period 31st January, 2014, along with interest on amount of excise duty.


Mar 31, 2013

1. SEGMENT REPORTING

For management purpose, the Company is currently organized into two major operating divisions - Pigments and Agro Chemicals. These divisions are the basis on which the Company reports its primary segment information.

Principal activities are as follows:

Pigment division : To Manufacture and distribute Phthalocynine Green 7, Copper Phthalocynine Blue (CPC), Alpha Blue and Beta Blue.

Agrochemicals division : To Manufacture and distribute Technical, Intermediates and Formulations of Insecticides.

(a) Analysis By Business Segment Segment revenue and expense:

Segment revenue and expense are the operating revenue and expense reported in the Company''s Statement of profit and loss that are directly attributable to a segment and the relevant portion of such revenue and expense that can be allocated on a reasonable basis to a segment.

Segment assets and liabilities:

Segment assets include all operating assets used by a segment and consist principally of operating receivables, inventories and property, plant and equipment, net of allowances and provisions. Capital Expenditure includes the total cost incurred to acquire property, plant and equipment directly attributable to the segment. Segment liabilities include all operating liabilities and consist principally of trade payables and accrued expenses.

Inter-segment transfers:

Segment revenue and expenses include transfers between business segments. Inter-segment sales are charged at prevailing market rates. These transfers are eliminated at the Company level.

(c) Segment assets and capital expenditure :

Segment assets and capital expenditure are analysed based on the location of those assets. Capital expenditure includes the total cost incurred to purchase property, plant and equipment.

An analysis of the carrying amount of segment assets and capital expenditure by geographical locations is not presented, as the assets are all located in India.

Note - 2 AS-30

DISCLOSURES ON FINANCIAL DERIVATIVES

The Company uses derivative financial instruments such as Forwards, Swaps and Options to hedge its risks associated with foreign exchange fluctuations. The Company uses Interest Rate Swaps specifically to protect against Interest Rate Volatility on the floating rate External Commercial Borrowings (ECBs). It also uses Cross Currency Swaps to protect against foreign currency exchange rate as well as interest rate fluctuations on its foreign currency loans. Swaps and Forwards are also used to hedge the currency risk inherent in the settlement of the Liabilities denominated in foreign exchange.

For derivative financial instruments and foreign currency monetary items designated as Cash Flow hedges, the effective portion of the fair value of the derivative financial instruments are recognized in Hedge Reserve and reclassified to Statement of Profit and Loss as per guidance in AS 30. Hedge reserves have been debited to the extent of Rs. 4,61,99,399/- during the financial year 2012-13 (during financial year 2011-12 Rs. 17,90,51,761). During the financial year 2012-13 Rs. 9,09,20,514/- has been recycled from the reserves and debited to the Statement of Profit and Loss (during financial year 2011-12 Rs. 1,87,01,520 was credited to Statement of Profit and Loss).

The ineffective portion of the change in fair value of such instruments is recognized in the Profit and Loss in the period in which they arise. During the financial year 2012-13 Rs. NIL (during financial year 2011-12 Rs. 59,46,659) was charged to Profit and Loss being the ineffectiveness portion of the effective hedging instrument. The various cash flows with reference to the hedged items and the hedging instruments are expected to occur over the coming years and are expected to affect the Statement of Profit and Loss over the same period of time. If the hedging relationship ceases to be effective or it becomes probable that the expected transaction will no longer occur, hedge accounting is discontinued and the fair value changes arising from the derivative financial instruments are recognized in Statement of Profit and Loss.


Mar 31, 2012

Each equity shareholders has 1 voting right. All equity shareholders have equal rights in proportion to the holding.

The Company has declared dividend Rs. 2,54,31,421 (Previous year Rs. 10,17,25,684 representing 10% (Previous year 40%) Paid up Capital and Rs. 0.10 per share (Previous year Rs. 0.40 per share)

Details of Security and Repayment Terms

1. Secured Non-Convertible Debentures of Rs. 1,000,000,000/- are secured by way of pan passu charge on Mortgage of immoveable properties situated at GIDC Vatva, GIDC Panoli, GIDC Dahej, GIDC Ankleshwar and Village Chharodi, Taluka Sanand, District - Ahmedabad.

2. Redemption detail of 10.4% secured Non Convertible Debenture Rs. 1,000,000,000

3. External Commercial borrowing of USD 11,000,000 equivalent to Rs. 51,13,90,000 from Standard Chartered Bank, Ahmedabad. The facility is secured by First charge on all the present and future Movable Fixed assets financed under term loan including movable fixed assets held at CH-1-2/A, GIDC Dahej, Taluka Varga, Bharuch and repayable in 13 installment of USD 785400 of each and last installment of USD 789,800 and interest @ 3 Month LIBOR 2.5%.

4. The interest rate on working capital facilities from State Bank of India, HDFC Bank Limited and ICICI Bank Limited (Collectively known as consortium Bankers) varies within the range of 10.95% to 14.50% (both inclusive) and are secured by:-

a) First Pan Passu charge created on 25.05.2005 to State Bank of India (with HDFC Bank Limited and ICICI Bank Ltd.) by way of hypothecation of the entire stock of raw material, work in process, finished goods, stores and spares and receivables.

b) First Pan Passu charge on immovable properties to State Bank of India (with HDFC Bank Limited and ICICI Bank Ltd.) as collateral security for the working capital facilities.

c) The indenture of the mortgage created on immovable porperties are located at:

i) Plot No. 168,180,183 and 184 of GIDC Industrial Estate Vatva Ahmedabad;

ii) Block No. 402,403,404 and 404 at Village Chharodi, Taluka Sanand, District Ahmedabad

iii) Plot No. 21 & 21/1 of GIDC Industrial Estate Panoli, Taluka Ankleshwar,

iv) Plot NO. 5001/B of GIDC Industrial Estate, Ankleshwar, 5 Short Term Loan from bank includes Commercial papers Rs. NIL (Previous Year Rs. 200,000,000) having maturity date of 21 April 2011 with an interest rate of 8.95%.

IPO Refund Payable represents share application money received at the time of IPO and pending for refund due to non-traceability of investors. The Company has kept the balance of such money in a separate account with Bank and as informed to statutory authorities no interest thereon is provided.

Provision for Interest-Micro, Small and Medium Enterprises

The Company has received certain intimation from "Suppliers" regarding their status under Micro, Small and Medium Enterprises Development Act, 2006 and accordingly, the company has provided for interest of interest of Rs. 1,393,523 (Previous Year Rs. 509,443) being payable as required under the said act.

As per revised Account in Standard 15(AS-15) "Employees Benefits", the Company has recognized in the financial statements in respects of Employee Benefits Schemes as per Actuarial Valuation as on 31st March, 2012.

1. SEGMENT REPORTING

For management purpose, the Company is currently organised into two major operating divisions - Pigments and Agro Chemicals. These divisions are the basis on which the Company reports its primary segment information. Principal activities are as follows:

Pigments division

To Manufacture and distribute Phthalocynlne Green 7, Copper Phthalocynine Blue (CPC), Alpha Blue and Beta Blue.

Agrochemicals division

To Manufacture and distribute Technical, Intermediates and Formulations of Insecticides.

A. Analysis By Business Segment

Segment revenue and expense:

Segment revenue and expense are the operating revenue and expense reported in the Company's profit and loss statement that are directly attributable to a segment and the relevant portion of such revenue and expense that can be allocated on a reasonable basis to a segment

Segment assets and liabilities:

Segment assets include all operating assets used by a segment and consist principally of operating receivables, Inventories and property, plant and equipment, net of allowances and provisions. Capital Expenditure includes the total cost incurred to acquire property, plant and equipment directly attributable to the segment. Segment liabilities include all operating liabilities and consist principally of trade payables and accrued expenses.

Inter-segment transfers:

Segment revenue and expenses include transfers between business segments. Inter-segment sales are charged at prevailing market rates. These transfers are eliminated at the Company level.

b) Analysis By Geographical Segment Segment Revenue:

Segment revenue is analysed based on the location of customers regardless of where the goods are produced. The following provides an analysis of the Companys' sales by geographical Markets:

c) Segment assets and Capital expenditure:

Segment assets and capital expenditure are analysed based on the location of those assets. Capital expenditure includes the total cost incurred to purchase property, plant and equipment.

An analysis of the carrying amount of segment assets and capital expenditure by geographical locations is not presented, as the assets are all located in India.

2. RELATED PARTIES DISCLOSURES :-

Holding Company Nil

Subsidiaries of the company Meghmani Organics USA, Inc. (MOL-USA)

Meghmani Europe BVBA(MOL-EUROPE) Meghmani Energy Limited (MEL) Meghmani Finechem Limited (MFL) PT Meghmani Organics Indonesia (MOL-INDONESIA) Meghmani Chemtech Limited (MCTL) Meghmani Overseas FZE - Dubai

Enterprises In which Directors & Meghmani Pigments Key Managerial Personnel [KMP] Ashish Chemicals have significant influence: Tapsheel Enterprise Meghmani Dyes and Intermediates Ltd. Meghmani Industries Limited Meghmani Chemicals Limited Fidelity Exports Private Limited Panchratna Corporation

Key Managerial Personnel Mr. Jayanti M Patel Mr. Ashish N Soparkar Mr. Natwarlal M Patel Mr. Ramesh M Patel Mr.AnandlPatel

Relatives of Key Managerial Personnel Ms. Deval Soparkar (Employee) Mr. Kama R Patel Mr.AnkitN Patel Mr. Darshan I Patel Relatives of Key Managerial Personnel Mr. KM Patel (Consultant) Mr. Saurabh Soparkar

Joint Venture Trience Speciality Chemicals Pvt Ltd.


Mar 31, 2011

1. CONTINGENT LIABILITIES / CAPITAL COMMITMENTS

a) Contingent Liabilities not provided for in account:

Particulars As on 31.03.2011 As on 31.03.2010

In respect of Bank Guarantees 897.30 803.60

In respect of Letters of Credit 1412.42 1143.59

In respect of Corporate Bank Guarantees 5500.00 2500.00

b) Contingent Liabilities in respect of other statutes.

Name of Statute Nature of Dues Rsin lacs Forum whereDispute is pending

Income Tax Act. IncomeTax / Penalty for 877.78 Commissioner of Income Various (Appeal) / Income tax Financial year Appellate 1999-2000 to Tribunal / High Court 2006-2007

Central Excise Excise Duty 659.93 Commissioner of Tariff Act (Financial years Central 2007-2008 Director General of to 2010-2011) Central Excise Audit team of Central Excise / Central Excise Service tax AppellateTribunal Labour Laws Compensation Claims 105.79 Labour Court

Value Added Input Tax Credit 45.83 The Joint Commercial Tax Tax Commissioner Appeal 1 Professional Employees 0.40 Disputed between Tax Local Authority & ProfessionalTax Sales Tax Department

c) The estimated amount of contracts remaining to be executed on capital accounts of Rs. 360.02 lacs (P.Y. Rs. 982.83 lacs) is not provided for.

2.INTER DIVISION TRANSFER

Sales Purchases are shown net of Inter Divisional Transfer amounting to Rs. 6139.97 lacs (Previous year Rs. 6288.13 lacs). Other income and manufacturing expenses are shown net of Inter Divisional Job work charges income of Rs. 507.61 lacs (Previous year Rs. 384.45 lacs).

During the year 2005-06, the Company has installed Captive Power plants as separate business undertaking, to avail benefit of infrastructure under Section 80 IB of the Income Tax Act, 1961. From the same units the Company has sold power to the tune of Rs. 765.49 lacs (Previous year Rs. 710.56 lacs) to its other units. The same is knocked off from sales.

3. FOREIGN EXCHANGE RATE DIFFERENCE

The Net Foreign Exchange Rate difference pertaining to Export realisation and option derivatives amounting to Rs.(567.01) lacs (Previous Year Rs. 111.96 lacs) has been considered to be Exceptional Items in Profit and Loss Account.

4.IMPAIRMENT OF ASSETS

During the year, the Company has impaired its assets to the tune of Rs. Nil (Previous year Rs. Nil)

5. SUBSIDIARIES

The Company has following companies as its subsidiaries:-

- MeghmaniEurope BVBA

- Meghmani Organics USA Inc.

- Meghmani Energy Limited

- Meghmani Finechem Limited

- PT Meghmani Organics Indonesia

- Meghmani Chemtech Limited

6.SEGMENT REPORTING

For management purpose, the Company is currently organised into two major operating divisions - Pigments and Agro Chemicals. These divisions are the basis on which the Company reports its primary segment information. Principal activities are as follows:

Pigments division

To Manufacture and distribute Phthalocynine Green 7, Copper Phthalocynine Blue (CPC), Alpha Blue and Beta Blue.

Agrochemicals division

To Manufacture and distribute Technical, Intermediates and Formulations of Insecticides.

(a) Analysis By Business Segment

Segment revenue and expense:

Segment revenue and expense are the operating revenue and expense reported in the Company's profit and loss statement that are directly attributable to a segment and the relevant portion of such revenue and expense that can be allocated on a reasonable basis to a segment.

Segment assets and liabilities:

Segment assets include all operating assets used by a segment and consist principally of operating receivables, inventories and property, plant and equipment, net of allowances and provisions. Capital Expenditure includes the total cost incurred to acquire property, plant and equipment directly attributable to the segment. Segment liabilities include all operating liabilities and consist principally of trade payable and accrued expenses.

Inter-segment transfers:

Segment revenue and expenses include transfers between business segments. Inter-segment sales are charged at

prevailing market rates. These transfers are eliminated at the Company level.

(b) Analysis By Geographical Segment

Segment revenue:

Segment revenue is analysed based on the location of customers regardless of where the goods are produced. The following provides an analysis of the Company's sales by geographical Markets:

(c) Segment assets and capital expenditure:

Segment assets and capital expenditure are analysed based on the location of those assets. Capital expenditure includes the total cost incurred to purchase property, plant and equipment. An analysis of the carrying amount of segment assets and capital expenditure by geographical locations is not presented, as the assets are all located in India.

7. MANAGERIAL REMUNERATION

Managerial remuneration U/S 198 of the Companies Act 1956 paid or payable during the financial year to the Directors and Computation of Net Profit in accordance with section 198(1) and section 349 of the Companies Act, 1956 are as under :-

8. PROVISION FOR TAXATION

The Company has made Income Tax provision of Rs. 1150.00 Lacs (Previous year Rs. 2300.00 Lacs) which includes Wealth tax provision of Rs. 4.10 Lacs for the year ended on 31st March, 2011 after taking into consideration the benefits of Export Oriented units under Section 10 B, U/S 80IB and U/S 35(2AB) of Income Tax 1961.

The Income-Tax assessments of the company have been completed up to Assessment Year 2007-08. The disputed demand outstanding up to the said assessment year is Rs. 877.78 Lacs. Based on the decisions of the Appellate authorities and the interpretation of other relevant provisions, the company has been legally advised that the demand is likely to be either deleted or substantially reduced and accordingly no provision has been made.

9. RELATED PARTIES DISCLOSURES :-

- Holding Company : Nil

- Subsidiaries of the company : Meghmani Organics USA, Inc.(MOL-USA) Meghmani Europe BVBA(MOL-EUROPE) Meghmani Energy Limited (MEL) Meghmani Finechem Limited (MFL) PT Meghmani Organics Indonesia(MOL- INDONESIA) Meghmani Chemtech Limited (MCTL)

- Enterprises in which Directors & : Meghmani Pigments Key Managerial Personnel[KMP] Ashish Chemicals have significant influence : TapsheelEnterprise Meghmani Dyes and Intermediates Ltd. Meghmani Industries Limited Meghmani Chemicals Limited Fidelity Exports Private Limited Vanguard Overseas Limited Panchratna Corporation

- Key Managerial Personnel Mr. Jayanti M Patel Mr. Ashish N Soparkar Mr. Natwarlal M Patel Mr. Ramesh M Patel Mr.Anand I Patel Mr. Ashvin Raythatha

- Relatives of Key Managerial Personnel Ms. Deval Soparkar (Employee) Mr. Karna R Patel Mr. Ankit N Patel

- Relatives of Key Managerial Personnel Mr. K M Patel (Consultant)

10. The Company has called for balance confirmation of Debtors and Creditors on random basis. Out of which the Company has received response from some of the parties, which are reconciled with Company's account. The other balances of Debtors and Creditors are subject to confirmation.

11. The Company has received certain intimation from "Suppliers" regarding their status under the Micro, Small and Medium Enterprises Development Act,2006 and accordingly company has provided for interest of Rs. 5.09 Lacs (P.Y. Rs. 1.01 Lacs) being payable as required under the said act.

12. The figures of previous year are regrouped and rearranged wherever necessary so as to make them comparable.

13. The Company has operating lease from various premises which are renewable on a periodic basis and cancellable at its option. Rental expenses for operating lease charged to Profit and Loss Account for the year Rs. 181.84 Lacs ( Previous year Rs. 82.24 Lacs)

Not later than 1 year Rs. 181.84 lacs (Previous year Rs. 82.24 Lacs)

Not later than 5 years Rs. Nil. (Previous year Rs. Nil)

14. a) During the year, a fire occurred in Unit - II of Panoli Division belonging to Pigment Segment. The Company incurred a loss / Expenses for Rs.211,780,309 relating to Stock of goods and Fixed Assets destroyed by fire. Accordingly, the Company has lodged a claim with Insurance Company and has received Rs.800 lacs towards part payment of the above claim.

As per the past practice, The Company's Management have estimated a loss of Rs. 2,500,000 being short recoverable from the insurance company which has been charged to Profit and Loss Account as an Extraordinary item

b) Loans and Advances include a sum of Rs. 129,280,309 towards claim preferred on account fire claim with Insurance Company on the basis of loss / expenses incurred by the Company which are pending settlement with the Insurance Company. The Management is of the view that this is fully recoverable & considered good.

15. The Company has written down the value of inventory of trading goods to the extent of Rs. 32.68 Lacs (Previous year Rs. 462.60 Lacs) in view of quality of goods.

16. Trading Purchase includes Rs. 32.68 Lacs and Selling & distribution Expenses Includes Rs. 19.23 Lacs (Previous Year Rs. Nil) related to Prior Period Expenses.

17. Retirement Benefits

As per revised Accounting Standard 15 (AS-15) "Employees Benefits" issued by The Institute of Chartered Accountants of India, the Company has recognized in the financial statements in respects of Employee Benefits Schemes as per Actuarial Valuation as on 31st March 2011.

The estimates of future salary increases, considered in actuarial valuation, take account of inflation, seniority, promotion and other relevant factors, such as supply and demand in the employment market.

(B) Defined Contribution Plans

Amount recognised as an expenses as "contribution / provision to and for Provident and other Funds" of profit and loss account - Rs. 71.34 Lacs (Previous year Rs. 63.39 Lacs)

1. Additional information required under para 3, 4 (c) and 4 (d) of part II of Schedule VI of the Companies Act, 1956 are as under :

1) Licensed & Installed Capacity and Production (in MT)

Note:

- Under the New Industrial Policy, No specific license is necessary for the manufacturing of the products mentioned above. The installed capacities are as per the certificates given by the Directors on which Auditors have relied.

2) Details of Turnover and production

Note: Sales include inter-divisional transfer.

3) Details of Turnover and production of Power Generation Units

Note: Sales include inter-divisional transfer. The above figures are obtained from SAP.


Mar 31, 2010

1. CONTINGENT LIABILITIES

Contingent liabilities not provided for in account:

Rs. In Lacs As on As on

In respect of Bank Guarantee 803.60 707.29

In respect of Letter of Credit 1143.59 2072.68

In respect of Corporate Bank Guarantee 2500.00 --

In respect of interest provision to MSM Enterprises 28.14 --

2. INTER DIVISION TRANSFER

Sales and Purchases are shown net of Inter Divisional Transfer amounting to Rs. 6288.13 lacs (Previous year Rs. 5089.94 lacs). Other income and manufacturing expenses are shown net of Inter Divisional Job work charges income of Rs. 384.45 lacs (Previousyear Rs. Nil).

During the year 2005-06, the Company has installed Captive Power plants as separate business undertaking, to avail benefit of infrastructure under Section 80 IB of the Income Tax Act, 1961. From the same units the Company has sold powerto the tune of Rs. 710.56 lacs (Previousyear Rs. 422.10 lacs) to its other units. The same is knocked off from sales.

3. FOREIGN EXCHANGE RATE DIFFERENCE

The Net Foreign Exchange Rate difference pertaining to Export realisation and option derivatives amounting to Rs. 111.96 lacs (Previous Year Rs. 2253.62 lacs) has been considered to be Exceptional Items in Profit and Loss Account.

4. IMPAIRMENT OF ASSETS

During the year, the Companyhasimpaired its assets to thetune of Rs. Nil (Previous year Rs. Nil).

5. SUBSIDIARIES

The Company has following companies as its subsidiaries:-

- Meghmani Europe BVBA

- Meghmani Organics USA, Inc.

- Meghmani Energy Limited

- Meghmani Finechem Limited

- PT Meghmani Organics Indonesia

- Meghmani Chemtech Limited

6. SEGMENT REPORTING

For management purpose, the Company is currently organised into two major operating divisions - Pigments and Agro Chemicals. These divisions are the basis on which the Company reports its primary segment information.

Principal activities are as follows:

Pigments division

To Manufacture and distribute Phthalocynine Green 7, Copper Phthalocynine Blue (CPC), Alpha Blue and Beta Blue.

Agrochemicals division

To Manufacture and distribute Technical, Intermediates and Formulations of Insecticides.

(a) Analysis By Business Segment

Segment revenue and expense:

Segment revenue and expense are the operating revenue and expense reported in the Companys profit and loss statement that are directly attributable to a segment and the relevant portion of such revenue and expense that can be allocated on a reasonable basis to a segment.

Segment assets and liabilities:

Segment assets include all operating assets used by a segment and consist principally of operating receivables, inventories and property, plant and equipment, net of allowances and provisions. Capital expenditure includes the total cost incurred to acquire property, plant and equipment directly attributable to the segment. Segment liabilities include all operating liabilities and consist principally of trade payables and accrued expenses.

Inter-segment transfers:

Segment revenue and expenses include transfers between business segments. Inter-segment sales are charged at prevailing market rates. These transfers are eliminated at the Company level.

(c) Segment assets and capital expenditure:

Segment assets and capital expenditure are analysed based on the location of those assets. Capital expenditure includes the total cost incurred to purchase property, plant and equipment.

An analysis of the carrying amount of segment assets and capital expenditure by geographical locations is not presented, as the assets are all located in India.

7. PROVISION FOR TAXATION

The Company has made Income Tax provision of Rs. 2300 Lacs (Previous year Rs. 1175 Lacs) for the year ended on 31st March, 2010 after taking into consideration the benefit of Export Oriented units under Section 10 B, U/S 80IB and U/S 35(2AB) of Income Tax 1961. The Company has made FBT Provision of Rs. Nil (Previous year Rs. 25 lacs) forthe year ended on 31st March, 2010.

8. RELATED PARTIES DISCLOSURES :-

- Holding Company Nil

- Subsidiaries of the company

Meghmani Organics USA, Inc.(MOL-USA)

Meghmani Europe BVBA(MOL-EUROPE)

Meghmani Energy Limited (MEL)

Meghmani Finechem Limited (MFL)

PT Meghmani Organics Indonesia

(MOL-INDONESIA)

Meghmani Chemtech Limited (MCTL)

- Enterprises in which Directors & Key Managerial Personnel [KMP] have significant influence

Meghmani Pigments Ashish Chemicals Tapsheel Enterprise Meghmani Dyes and Intermediates Ltd. Meghmani Industries Limited Meghmani Chemicals Limited Fidelity Exports Private Limited Vanguard Overseas Limited

- Key Managerial Personnel

Mr. Jayanti M Patel Mr. Ashish Soparkar Mr. Natwarlal M Patel Mr. Ramesh M Patel Mr. Anand I Patel Mr. Ashvin Raythatha

- Relatives of Key Managerial Personnel (Employee)

Ms. Deval Soparkar Mr. Kama R Patel Mr. Ankit N Patel

- Relatives of Key Managerial Personnel (Consultant)

Mr. K M Patel

9. The Company has called for balance confirmation of Debtors and Creditors on random basis. Out of which the Company has received response from some of the parties, which are reconciled with Companys account. The other balances of Debtors and Creditors are subject to confirmation.

10. The estimated amount of contracts remaining to be executed on capital accounts of Rs. 982.83 lacs (P.Y. Rs. 720.09 lacs) is not provided for.

11. The Company has received certain intimation from "Suppliers" regarding their status under the Micro, Small and Medium Enterprises Development Act,2006 and accordingly company has provided for interest of Rs. 1.01 Lacs being payable as required under the said act.

11. The figures of previous year is regrouped and rearranged wherever necessary so as to make them comparable.

12. The Company has operating lease from various premises which are renewable on a periodic basis and cancellable at its option. Rental expenses for operating lease are charged to Profit and Loss Account for the year Rs. 82.24 Lacs (Previous year Rs. 46.12 Lacs)

Not laterthan 1 year Rs. 82.24 lacs (Previous year Rs. 46.12 Lacs)

Not laterthan 5 years Rs. Nil. (Previous year Rs. Nil)

13. During the year the Company has upgraded its SAP Programme to ECC 6 Version with Finance, Material Management, Production Planning, Quality Control and Costing Module.

14. The Company has written down the value of inventory of trading goods to the extent of Rs. 462.60 Lacs in view of quality of goods.

15. Retirement Benefits

As per revised Accounting Standard 15 (AS-15) "Employees Benefits" issued by The Institute of Chartered Accountants of India, the Company has recognized in the financial statements in respects of Employee Benefits Schemes as per Actuarial Valuation as on 31st March 2010.

 
Subscribe now to get personal finance updates in your inbox!