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Notes to Accounts of NOCIL Ltd.

Mar 31, 2015

CORPORATE INFORMATION

NOCIL Limited (the Company) was incorporated on 11 May 1961, and is engaged in manufacture of rubber chemicals. The Company has manufacturing facilities at Navi Mumbai (Maharashtra) and at Dahej (Gujarat). The products manufactured by the Company are used by the tyre industry and other rubber processing industries.

2 Contingent liability in respect of: (Rs. in Lakhs) 31 March 2015 31 March 2014

(a) Claims against the Company 47.12 62.27 not acknowledged as debts

(b) Central excise duty and 63.11 65.78 Customs duty demands disputed

(c) Income-tax demands disputed 1,074.30 1,074.30

(d) Sales tax demands disputed 393.81 393.81

Note: The Company has contested / filed appeals in respect of the aforesaid disputed matters before the authorities. The management is hopeful that matters will be decided in favour of the Company.

3. The Company is primarily engaged in the business of manufacturing and trading of rubber chemicals, which, in the context of Accounting Standard 17 on ''Segment Reporting'', constitutes a single reportable segment.

4. The Company''s significant leasing arrangements are in respect of operating leases for premises (residential, offices, godowns etc.) These lease arrangements are ranging between 11 months to 60 months generally or longer and are renewable by mutual consent or mutually agreeable terms. The aggregate lease rentals expense and income is '' 300.05 Lakhs (previous year Rs. 261.78 Lakhs) and Rs. 48.04 Lakhs (previous year Rs. 36.75 Lakhs) respectively.

5. During the year, pursuant to the notification of Schedule II to the Companies Act, 2013 with effect from April 1, 2014, the Company revised the estimated useful life of relevant assets to align the useful life with those specified in Schedule II. Pursuant to the transitional provisions prescribed in Schedule II to the Companies Act, 2013, the Company has fully depreciated the carrying value of the assets, net of residual value, where the remaining useful life of the asset was determined to be nil as on April 1,2014, and adjusted an amount of Rs 34.92 lakhs (net of deferred tax of Rs 17.99 lakhs) against the opening balance in the Statement of Profit and Loss under Reserves and Surplus.

The depreciation expense in the Statement of Profit and Loss for the year is lower by Rs. 456 .24 lakhs and profit after tax for the year is higher by Rs. 301.57 lakhs consequent to the change in the useful life of the assets.

6. Related Parties

(A) Name of related parties and description of relationship

(i) Subsidiary Company:

PIL Chemicals Limited (PIL) (Formerly known as PIL Chemicals Private Limited)

(ii) Enterprises over which Directors and Relatives of such personnel exercise significant influence:

Navin Fluorine International Limited Mafatlal Industries Limited Shri Sadguru Seva Sangh Trust Sri Chaitanya Seva Trust

(iii) Key Management Personnel:

Mr. C. R. Gupte

Mr. S. R. Deo (w.e.f. - 1 January 2014)

Had fair value method been used, the compensation cost would have been higher by Rs. 12.92 Lakhs (previous year Rs. 21.35 Lakhs), profit after tax would have been lower by Rs. 8.54 lakhs (previous year Rs. 14.55 Lakhs) and EPS - Basic would have been Rs. 3.52 (lower by Rs. 0.01) (previous year Rs. 1.46 per share (lower by Rs. 0.01) and Diluted would have been Rs. 3.50 (lower by Nil) (previous year Rs. 1.46 per share (lower by Rs. 0.01)).

The Company expects to contribute Rs. 210.30lakhs (previous year Rs. 138.78Lakhs) to its Gratuity plan for the next year.

In assessing the Company''s Post Retirement Liabilities the Company monitors mortality assumptions and uses up-to date mortality tables. The base being the Indian Assured Lives Mortality (2006-08) ultimate tables.

Expected return on plan assets is based on expectation of the average long term rate of return expected on investments of the fund during the estimated term of the obligations.

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

7. During the previous year ended 31 March 2014, the Company implemented a voluntary retirement scheme at its Navi Mumbai plant. The compensation paid during the previous year under the said scheme of Rs. 203.45 lakhs has been debited to the statement of Profit and loss and shownas an exceptional item in the previous year.

8. Details of Loans given, Investment made and Guarantee given covered under secton 186(4) of the Companies Act, 2013:

(i) The Company has not given any loans or guarantees.

(ii) Investments made by the Company as at 31 March 2015 (Refer note no. 11)

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


Mar 31, 2014

1. Contingent liability in respect of:

(Rs. in Lakhs)

2013-14 2012-13

(a) Claims against the Company not 62.27 140.58 acknowledged as debts

(b) Central excise duty and Customs duty 65.78 139.00 demands disputed

(c) Income tax demands disputed 1,074.30 865.83

(d) Sales tax demands disputed 393.81 364.36 Note: The Company has contested / filed appeals in respect of the aforesaid disputed matters before the authorities. The management is hopeful that matters will be decided in favour of the Company.

2 . Estimated amount of contracts remaining 149.26 142.70 to be executed on capital account and not provided for (net of advances)

3. The Company is primarily engaged in the business of manufacturing and trading of rubber chemicals, which, in the context of AS 17 on ''Segment Reporting'', constitutes a single reportable segment.

4. The Company''s significant leasing arrangements are in respect of operating leases for premises (residential, offices, godowns etc.). These lease arrangements are ranging between 11 months to 60 months generally or longer and are renewable by mutual consent or mutually agreeable terms. The aggregate lease rentals expense and income is Rs. 261.78 Lakhs (previous year Rs. 192.39 Lakhs) and Rs. 36.75 Lakhs (previous year Rs. 27.00 Lakhs) respectively.

5. The amount of borrowing costs capitalized during the year is NIL (previous year Rs. 1,013.69 Lakhs)

6. Related Parties

(A) Name of related parties and description of relationship

(I) Subsidiary Company:

PIL Chemicals Private Limited (PIL)

(ii) Enterprises over which Directors and Relatives of such personnel exercise significant influence:

Navin Fluorine International Limited

Mafatlal Industries Limited

(iii) Key Management Personnel:

Mr. C. R. Gupte

Mr. S. R. Deo (w.e.f. - 1st January 2014)

7. The Company has implemented a voluntary retirement scheme at its Navi Mumbai plant. The compensation paid during the current year under the said scheme of Rs. 203.45 lakhs has been debited to the Statement of Profit and loss and disclosed as an exceptional item.

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


Mar 31, 2013

1 Contingent liability in respect of: (Rs. in Lakhs)

(a) Claims against the Company not 140.58 202.88 acknowledged as debts

- Legal cases against the company

(b) Central excise duty and Customs duty 139.00 153.42 demands disputed

(c) Income tax demands disputed 865.83 2,816.88

(d) Sales tax demands disputed 364.36 794.87

2. Estimated amount of contracts remaining 142.70 3,232.33

To be executed on capital account and not provided for (net of advances)

3. The company is primarily engaged in the business of manufacturing and trading of rubber chemicals, which, in the context of AS 17 on ''Segment Reporting'', constitutes a single reportable segment.

4. The Company''s significant leasing arrangements are in respect of operating leases for premises (residential, offices, godowns etc.). These lease arrangements are ranging between 11 months to 60 months generally or longer and are renewable by mutual consent or mutually agreeable terms. The aggregate lease rentals expense and income is Rs.192.39 Lakhs (previous year Rs.142.15 Lakhs) and Rs.27.00 Lakhs (previous year Rs.27.00 Lakhs) respectively.

5. The amount of borrowing costs capitalized during the year is Rs. 1,013.69 Lakhs (previous year Rs.467.14 Lakhs)

6. Related Parties

(A) Name of related parties and description of relationship

(i) Subsidiary Company:

PIL Chemicals Private Limited (PIL)

(ii) Enterprises over which Directors and Relatives of such personnel exercise significant influence:

Navin Fluorine International Limited Mafatlal Industries Limited

(iii) Key Management Personnel:

Mr. C. R. Gupte

7. The amounts due to Micro and Small Enterprises as defined in the "The Micro, Small and Medium Enterprises Development Act, 2006" 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. The disclosures relating to Micro and Small Enterprises as at 31st March, 2013 are as follows:

8. Derivative Instruments and Foreign Currency Exposure

(a) There are no outstanding forward exchange contracts as at 31 March 2013 and 31 March 2012.

(b) The year-end foreign currency exposures that have not been hedged are as follows:

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


Mar 31, 2010

(Rs. in lakhs)

2009-10 2008-09

1. Contingent liability in respect of:

(a) Central excise duty and Customs duty demands disputed 126.48 158.27

(b) Income tax demands disputed 1261.70 1261.70 (c) Sales tax demands disputed 807.44 772.59

2. The Company as at 31 March 2010 carries a total contingency reserve of Rs. 3000 lakhs (previous year Rs. 3000 lakhs) which, in its opinion, is adequate to meet any short fall/diminution in the ultimate realisation of its Investments, Current Assets and Loans & Advances.

3. The company is primarily engaged in the business of manufacturing and trading of rubber chemicals, which, in the context of AS 17 on Segment Reporting, constitutes a single reporting segment.

4. The Companys significant leasing arrangements are in respect of operating leases for premises (residential, offices, go- downs, subletting etc.). These lease arrangements are ranging between 4 months to 60 months generally or longer and are renewable by mutual consent or mutually agreeable terms. The aggregate lease rentals expenses and income is Rs 379.59 lakhs (previous year Rs 394.01 lakhs) and Rs 303.27 lakhs (previous year Rs 357.74 lakhs) respectively.

5. Related Parties

(A) Name of related parties and description of relationship (i) Subsidiary Companies:

Ensen Holdings Limited Urvija Investments Limited PIL Chemicals Private Limited

(ii) Enterprises over which Directors and Relatives of such personnel exercise significant influence:

Navin Fluorine International Limited Mafatlal Industries Limited

(iii) Key Management Personnel:

Mr. C. R. Gupte

(iv) Relatives of Key Management Personnel:

Mr. V. R. Gupte Mrs. A. C. Gupte

6. Figures of the previous year have been regrouped / rearranged wherever necessary to correspond with the figures of the current year. Amounts and other disclosures for the preceding year are included as an integral part of the current year financial statements and are to be read in relation to the amounts and other disclosures relating to the current year.

 
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