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Notes to Accounts of Ortin Laboratories Ltd.

Mar 31, 2015

1. CORPORATE INFORMATION:

Ortin Laboratories Limited ("The Company") was incorporated on 27th October, 1986 and the CIN being L24110AP1986PLC006885. The Company is engaged in the business of Manufacturing and trading of Pharmaceuticals, Drugs and Intermediates.

2. Security Details

Term Loan from Bank is Secured by hypothecation of Fixed Assets and Personal Guarantee of directors of the company excluding Honarary directors.The Company availed Rs.62,08,841/- out of total Sanction of Rs.140 lakhs during the year 2013-14. The Loan is repayble in 80 equated monthly instalments of Rs 1,75,000/- each, due to short availment of term loan the due date may be much earlier. The Loan carried interest @ (BR 4.5%)% p.a. The Company also availed a fresh loan of Rs.270 lakhs during the year. The Loan is repayble in 54 equated monthly instalments of Rs 5,00,000/- each. The Loan carried interest @ (BR 4.5%)% p.a.

Vehicle Loan from Bank is secured by hypothecation of vehicle financed.

b) Cash Credit form Karnataka Bank Limited is secured by present and future raw materials, semi finished goods, finished goods, stores and secured second charge on Fixed Assets of the Company and further secured by personal guarantee of promoter Directors.

3. SALES TAX DEFERMENT:

The sales tax deferment liability amounting to Rs. 11,15,966/- shown under Unsecured Loans are due for repayment from the financial year 2019 onwards. The Government of Andhra Pradesh has granted Sales Tax Deferment for a period of 14 years.

4. CONTINGENT LIABILITIES:

a) The contingent liabilities as on 31st March, 2015 are as follows:

1. Letters of Credit worth Rs. 600.00 lacs were outstanding at the end of the year.

2. With respect to Income Tax Scrutiny Assessment, the department raised a demand of Rs. 12.74 Crores for the F. Y. 2011-12. The company has filed an appeal and the same is pending with the Income Tax Department.

3. Mumbai sales tax authorities raised a demand of Rs. 76.74 lacs for the F. Y 2008-09. The company filed an appeal and the same is pending before the authorities.

4. Excise Department raised a demand of Rs. 10.03 lacs for the F.Y. 2010-11 and F.Y.2011-12. The company filed an appeal and the same is pending for disposal.

b) Estimated amount of contracts remaining to be executed on Capital Accounts and not provided for - NIL

5. SEGMENT REPORTING:

The Company is engaged in the manufacture of Drug Intermediates and Pharmaceuticals. Accounting Standard 17 "Segment Reporting" issued by the Institute of Chartered Accountants of India is not applicable.

6. SHARE CAPITAL:

The authorized capital of the company is Rs. 20,00,00,000/- divided into 2,00,00,000 equity shares of Rs. 10/- each.

Shareholders' funds of Rs. 16,94,04,000/- are divided into 1,69,40,400 equity shares of Rs. 10/- each.

7. The cash balance as on 31/03/2015 amounts to Rs.58,13,283/- which given the nature of the business of the company is relatively on higher side. Since we could not undertake physical verification of cash on 31/03/2015, we have relied upon the certificate issued by the management in this regard.

8. In the view of Management, no event has taken place to trigger the need for testing its assets for impairment. Accordingly, as per the management's assessment, the carrying values of its assets as at the Balance sheet date are not higher than their corresponding recoverable amounts.

9. In the opinion of the Board the Current assets, Loans and advances are approximately of the value stated if realized in the ordinary course of the business. The provision for depreciation and all known liabilities are adequate and not in excess of the amount considered reasonably necessary.

10. Confirmation of balances has not been received from any of the Creditors, Debtors and for Loans & Advances, which are subject to reconciliation. Provision for doubtful debts, if any, in respect of the above and the consequential adjustment, if any, whether of revenue nature or otherwise, will be dealt accordingly.

11. DISCLOSURE UNDER MICRO, SMALL AND MEDIUM ENTERPRISES DEVELOPMENT ACT, 2006:

As regards to the compliance of provisions relating to the dues to Micro, Small and Medium Enterprises in terms of Section 22 of the Micro, Small and Medium Enterprises Development Act, 2006, the Company has sent letters to the Creditors to confirm whether they are Micro, Small and Medium Enterprises. The Company is yet to receive the confirmations from them. Hence, the Company could not quantify the dues, if any to the Micro, Small and Medium Enterprises.

12. ADDITIONAL INFORMATION PURSUANT TO PARAGRAPHS 3 & 4 OF PART II OF SCHEDULE III TO THE COMPANIES ACT 2013, (AS CERTIFIED BY A DIRECTOR):

A. PARTICULARS IN RESPECT OF GOODS MANUFACTURED:

Since the products involved are voluminous, according to the management it is not possible to give product wise details.

B. STOCKS, PURCHASES & SALES OF FINISHED GOODS:

Since the products involved are voluminous, according to the management it is not possible to give product wise details.

13. The company has not proposed any dividend for the year under review.

14. During the year the company has amortized 20% of preliminary expenses i.e. Rs. 2,06,656/-.

15. The undisputed statutory dues payable pending as at 31/03/2015 for more than six months are Service Tax of Rs. 31,29,376/-, Sales Tax of Rs. 2,03,704/-.

16. An amount of Rs. 14,690/- is outstanding in the books under dividend payable account pertaining to the F.Y. 2012-13 which has to be transferred to unpaid dividend account of the concerned year.

17. Previous year figures have been regrouped and rearranged wherever necessary.

18. All the amounts are rounded off to the nearest rupee.


Mar 31, 2014

1) Cash Credit form Karnataka Bank Limited is secured by present and future raw materials, semi finished goods, finished goods, stores and secured second charge on Fixed Assets of the Company and further secured by personal guarantee of promoter Directors.

2. SALES TAX DEFERMENT:

The sales tax deferment liability amounting to Rs. 11,15,966/- shown under Unsecured Loans are due for repayment from the financial year 2019 onwards. The Government of Andhra Pradesh has granted Sales Tax Deferment for a period of 14 years.

3. CONTINGENT LIABILITIES:

a) The contingent liabilities as on 31st March, 2014 are as follows:

Particulars (Rs. In lacs)

In respect of Letters of Credit 600.00

b) Estimated amount of contracts remaining to be executed on Capital Accounts and not provided for - NIL.

4. RELATED PARTY TRANSACTIONS:

Disclosure as required by Accounting Standard AS 18: Related party disclosures issued by the Institute of Chartered Accountant of India (ICAI) are as follows:

(A) (i) Names of the transacting related parties:

SRI SAI KRISHNA MARKETING ASSOCIATES

(ii) Description of the relationship between the parties:

Associate Firm.

(iii) Description of the nature of transaction:

Sales and purchases to/from associates firm in which directors are interested.

(iv) Volume of transaction:

Sales : Rs. 77,87,595/-

Purchases : Rs. 61,30,388/-

Unsecured Loans Rs. 12,00,000/-

(v) Other elements of the related party transactions necessary for an understanding of the financial statements: NIL.

(vi) The amounts or appropriate proportions of outstanding items are pertaining to related parties at the balance sheet date and provisions for doubtful debts due from such parties at that date.

(vii) Outstanding items pertaining to the related party as on the date of Balance sheet: Dr. 2,57,508/-

(viii) Amounts written off or written back in the period in respect of debts due from or to related parties: NIL

(B) (i) Names of the transacting related parties:

ORTIN BIOTECH PRIVATE LIMITED

(ii) Description of the relationship between the parties:

Associate Company.

(iii) Description of the nature of transaction:

Inter corporate Deposits to associate Company in which directors are interested.

(iv) Volume of transaction: Rs. NIL.

(v) Other elements of the related party transactions necessary for an understanding of the financial statements: NIL.

(vi) The amounts or appropriate proportions of outstanding items pertaining to related parties at the balance sheet date and provisions for doubtful debts due from such parties at that date.

(vii) Outstanding items pertaining to the related party as on the date of Balance sheet: Dr. 12,53,000/-.

(viii) Amounts written off or written back in the period in respect of debts due from or to related parties: NIL

(C) (i) Names of the transacting related parties:

WOHLER LABORATORIES PRIVATE LIMITED

(ii) Description of the relationship between the parties:

Enterprise over which key managerial personnel/ their relatives are able to exercise significant influence

(iii) Description of the nature of transaction:

Sales and purchases to/from a company in which directors are interested.

(iv) Volume of transaction:

Sales: Rs. 96,13,355/-

Purchases: Rs. 40,36,681/-

(v) Other elements of the related party transactions necessary for an understanding of the financial statements: NIL.

(vi) The amounts or appropriate proportions of outstanding items are pertaining to related parties at the balance sheet date and provisions for doubtful debts due from such parties at that date.

(vii) Outstanding items pertaining to the related party as on the date of Balance sheet: Dr. 3,83,13,687/-

(viii) Amounts written off or written back in the period in respect of debts due from or to related parties: NIL.

5. SEGMENT REPORTING:

The Company is engaged in the manufacture of Drug Intermediates and Pharmaceuticals. Accounting Standard 17 "Segment Reporting" issued by the Institute of Chartered Accountants of India is not applicable.

6. SHARE CAPITAL:

The authorized capital of the company is Rs. 20,00,00,000/- divided into 2,00,00,000 equity shares of Rs. 10/- each.

Shareholders'' funds of Rs. 16,94,04,000/- are divided into 1,69,40,400 equity shares of Rs. 10/- each.

7. In the opinion of the Board the Current assets, Loans and advances are approximately of the value stated if realized in the ordinary course of the business. The provision for depreciation and all known liabilities are adequate and not in excess of the amount considered reasonably necessary.

8. The balances shown against Sundry Debtors, Sundry Creditors and Advances are subject to confirmation from the respective parties.

9. DISCLOSURE UNDER MICRO, SMALL AND MEDIUM ENTERPRISES DEVELOPMENT ACT, 2006:

As regards to the compliance of provisions relating to the dues to Micro, Small and Medium Enterprises in terms of Section 22 of the Micro, Small and Medium Enterprises Development Act, 2006, the Company has sent letters to the Creditors to confirm whether they are Micro, Small and Medium Enterprises. The Company is yet to receive the confirmations from them. Hence, the Company could not quantify the dues, if any to the Micro, Small and Medium Enterprises.

10. ADDITIONAL INFORMATION PURSUANT TO PARAGRAPHS 3 & 4 OF PART II OF SCHEDULE VI TO THE COMPANIES ACT 1956, (AS CERTIFIED BY A DIRECTOR:

A. PARTICULARS IN RESPECT OF GOODS MANUFACTURED:

Since the products involved are voluminous, according to the management it is not possible to give product wise details.

B. STOCKS, PURCHASES & SALES OF FINISHED GOODS:

Since the products involved are voluminous, according to the management it is not possible to give product wise details.

11. During the year the company has not proposed any dividend.

12. During the year the company has amortized 20% of preliminary expenses i.e. Rs. 2,06,656/-.

13. The undisputed statutory dues payable pending for more than six months are Tax Deducted at Source of Rs. 5,96,213/-, Provident Fund of Rs. 3,00,635/- and Service Tax of Rs. 17,33,342/-.

14. Previous year figures have been regrouped and rearranged wherever necessary.

15. All the amounts are rounded off to the nearest rupee.


Mar 31, 2013

1. SALES TAX DEFERMENT:

The sales tax deferment liability amounting to Rs. 11,15,966/- shown under Unsecured Loans are due for repayment from the financial year 2019 onwards. The Government of Andhra Pradesh has granted Sales Tax Deferment for a period of 14 years.

2. CONTINGENT LIABILITIES:

a) The contingent liabilities as on 31st March, 2013 are as follows: Particulars (Rs. In lacs)

In respect of Letters of Credit 600.00

Excise Duty demand based on audit objection raised by department on 19/04/2012 9.35

b) Estimated amount of contracts remaining to be executed on Capital Accounts and not provided for – NIL.

3. RELATED PARTY TRANSACTIONS:

Disclosure as required by Accounting Standard AS 18: Related party disclosures issued by the Institute of Chartered Accountant of India (ICAI) is as follows: (A) (i) Names of the transacting related parties.

SRI SAI KRISHNA MARKETING ASSOCIATES (ii) Description of the relationship between the parties.

Associate Firm. (iii) Description of the nature of transaction.

Sales and purchases to/from associates firm in which directors are interested. (iv) Volume of transaction:

Sales: Rs. 32,36,025/-

Purchases: Rs. 88,29,261/-

Unsecured Loans Rs. 16,50,000/-

The above transactions are not related to the products, which are manufactured at the company''s production facilities and it is only a trading transaction.

(v) Other elements of the related party transactions necessary for an understanding of the financial statements: NIL. (vi) The amounts or appropriate proportions of outstanding items are pertaining to related parties at the balance sheet date and provisions for doubtful debts due from such parties at that date.

(vii) Outstanding items pertaining to the related party as on the date of Balance sheet: Cr. 53,59,042/-

(viii) Amounts written off or written back in the period in respect of debts due from or to related parties: NIL

(B) (i) Names of the transacting related parties:

ORTIN BIOTECH PRIVATE LIMITED (ii) Description of the relationship between the parties:

Associate Company. (iii) Description of the nature of transaction:

Inter corporate Deposits to associate Company in which directors are interested. (iv) Volume of transaction: Rs. NIL.

(v) Other elements of the related party transactions necessary for an understanding of the financial statements: NIL. (vi) The amounts or appropriate proportions of outstanding items pertaining to related parties at the balance sheet date and provisions for doubtful debts due from such parties at that date.

(vii) Outstanding items pertaining to the related party as on the date of Balance sheet:

Dr. 12,53,000/-. (viii) Amounts written off or written back in the period in respect of debts due from or to related parties: NIL

(C) (i) Names of the transacting related parties: WOHLER LABORATORIES PRIVATE LIMITED (ii) Description of the relationship between the parties:

Enterprise over which key managerial personnel/ their relatives are able to exercise

significant influence (iii) Description of the nature of transaction:

Sales and purchases to/from a company in which directors are interested. (iv) Volume of transaction:

Sales: Rs. 25,82,392/-

Purchases: Rs. 4,21,568/-

(v) Other elements of the related party transactions necessary for an nderstanding of the financial statements: NIL. (vi) The amounts or appropriate proportions of outstanding items are pertaining to related parties at the balance sheet date and provisions for doubtful debts due from such parties at that date. (vii) Outstanding items pertaining to the related party as on the date of Balance sheet: Dr. 2,13,45,033/- (viii) Amounts written off or written back in the period in respect of debts due from or to related parties: NIL.

4. SEGMENT REPORTING:

The Company is engaged in the manufacture of Drug Intermediates and Pharmaceuticals. Accounting Standard 17 "Segment Reporting" issued by the Institute of Chartered Accountants of India is not applicable.

5. SHARE CAPITAL:

The authorized capital of the company is Rs. 20,00,00,000/- divided into 2,00,00,000 equity shares of Rs. 10/- each.

Shareholders'' funds of Rs. 16,94,04,000/- are divided into 1,69,40,400 equity shares of Rs. 10/- each.

6. In the opinion of the Board the Current assets, Loans and advances are approximately of the value stated if realized in the ordinary course of the business. The provision for depreciation and all known liabilities are adequate and not in excess of the amount considered reasonably necessary.

7. The balances shown against Sundry Debtors, Sundry Creditors and Advances are subject to confirmation from the respective parties.

8. DISCLOSURE UNDER MICRO, SMALL AND MEDIUM ENTERPRISES DEVELOPMENT ACT, 2006:

As regards to the compliance of provisions relating to the dues to Micro, Small and Medium Enterprises in terms of Section 22 of the Micro, Small and Medium Enterprises Development Act, 2006, the Company has sent letters to the Creditors to confirm whether they are Micro, Small and Medium Enterprises. The Company is yet to receive the confirmations from them. Hence, the Company could not quantify the dues, if any to the Micro, Small and Medium Enterprises.

9. ADDITIONAL INFORMATION PURSUANT TO PARAGRAPHS 3 & 4 OF PART II OF SCHEDULE VI TO THE COMPANIES ACT 1956, (AS CERTIFIED BY A DIRECTOR:

A. PARTICULARS IN RESPECT OF GOODS MANUFACTURED:

Since the products involved are voluminous, according to the management it is not possible to give product wise details.

B. STOCKS, PURCHASES & SALES OF FINISHED GOODS:

Since the products involved are voluminous, according to the management it is not possible to give product wise details.

10. During the year the board of directors proposed a dividend of 2.5% on paid up Share Capital.

11. During the year the company has amortized 20% of preliminary expenses i.e. Rs. 2,06,656/-.

12. During the year the following provisions were made:

13. During the year the Company has made Rs.2,55,017/- towards Provision for Gratuity. The Company has not complied actuarial valuation referred in the Accounting Standard 15 "Accounting for Retirement Benefits in the financial Statement of Employers".

14. Disclosure under clause 32 of the Listing Agreement:

(a) Loans and Advances in the nature of Loans to Subsidiary Company NIL

(b) Loans and Advances in the nature of Loans to Associate Company NIL

(c) Loans and Advances in the nature of Loans where there is:

(i) No repayment schedule or repayment beyond 7 years NIL

(ii) No interest or interest below section 372 A of Companies Act NIL

(d) Loans and Advances in the nature of Loans to firms/companies

In which directors are interested Rs. 12,53,000

(e) Investment by the Loanee in the shares of the parent company And subsidiary company, when the company has made a loan

Or advance in the nature of loan NIL

15. Previous year figures have been regrouped and rearranged wherever necessary.

16. All the amounts are rounded of to the nearest rupee.


Mar 31, 2012

1. SALES TAX DEFERMENT

The sales tax deferment liability amounting to Rs. 11,15,966/- shown under Unsecured Loans due for repayment from the financial year 2019 onwards. The Government of Andhra Pradesh has granted Sales Tax Deferment for a period of 14 years.

2. CONTINGENT LIABILITIES:

a) The contingent liabilities as on 31st March, 2012 are as follows:

Particulars (Rs. In lacs)

In respect of Letters of Credit 600.00

Excise Duty demand based on audit objection raised by department on 19/04/2012 9.35

b) Estimated amount of contracts remaining to be executed on Capital Accounts and not provided for – NIL.

3. RELATED PARTY TRANSACTIONS:

Disclosure as required by Accounting Standard AS 18: Related party disclosures issued by the Institute of Chartered Accountant of India (ICAI) is follows: (A) (i) Names of the transacting related parties.

SRI SAI KRISHNA MARKETING ASSOCIATES (ii) Description of the relationship between the parties.

Associate Firm. (iii) Description of the nature of transaction.

Sales and purchases to/from associates firm in which directors are interested. (iv) Volume of transaction:

Sales: Rs. 24,76,198/-

Purchases: Rs. 18,51,651/-

Unsecured Loans Rs. 30,00,000/-

The above transactions are not related to the products, which are manufactured at the company''s production facilities and it is only a trading transaction.

(v) Other elements of the related party transactions necessary for an understanding of the financial statements: NIL.

(vi) The amounts or appropriate proportions of outstanding items pertaining to related parties at the balance sheet date and provisions for doubtful debts due from such parties at that date.

(vii) Outstanding items pertaining to the related party as on the date of Balance sheet: Cr. 11,02,824/-

(viii) Amounts written off or written back in the period in respect of debts due from or to related parties: NIL

(B) (i) Names of the transacting related parties.

ORTIN BIOTECH PRIVATE LIMITED

(ii) Description of the relationship between the parties.

Associate Company.

(iii) Description of the nature of transaction.

Inter corporate Deposits to associate Company in which directors are interested.

(iv) Volume of transaction: Rs. 11,42,000/-

(v) Other elements of the related party transactions necessary for an understanding of the financial statements: NIL.

(vi) The amounts or appropriate proportions of outstanding items pertaining to related parties at the balance sheet date and provisions for doubtful debts due from such parties at that date.

(vii) Outstanding items pertaining to the related party as on the date of Balance sheet: Dr. 12,53,000/-

(viii) Amounts written off or written back in the period in respect of debts due from or to related parties: NIL

(C) (i) Names of the transacting related parties.

WOHLER LABORATORIES PRIVATE LIMITED

(ii) Description of the relationship between the parties.

Enterprise over which key managerial personnel/ their relatives are able to exercise significant influence

(iii) Description of the nature of transaction.

Sales and purchases to/from a company in which directors are interested.

(iv) Volume of transaction:

Sales: Rs. 1,47,70,905/-

Purchases: Rs. 30,07,338/-

(v) Other elements of the related party transactions necessary for an understanding of the financial statements: NIL.

(vi) The amounts or appropriate proportions of outstanding items pertaining to related parties at the balance sheet date and provisions for doubtful debts due from such parties at that date.

(vii) Outstanding items pertaining to the related party as on the date of Balance sheet: Dr. 1,43,09,144/- (viii) Amounts written off or written back in the period in respect of debts due from or to related parties: NIL.

4. SEGMENT REPORTING: The Company is engaged in the manufacture of Drug Intermediates and Pharmaceuticals. Accounting Standard 17 "Segment Reporting" issued by the Institute of Chartered Accountants of India is not applicable.

5. SHARE CAPITAL:

The authorized capital of the company is Rs. 20,00,00,000/- divided into 2,00,00,000 equity share of Rs. 10/- each.

Shareholders'' funds of Rs. 16,94,04,000/- divided into 1,69,40,400 equity share of Rs.10/- each.

6. In the opinion of the Board the Current assets, Loans and advances are approximately of the value stated if realized in the ordinary course of the business. The provision for depreciation and all known liabilities are adequate and not in excess of the amount considered reasonably necessary.

7. The balances shown against Sundry Debtors, Sundry Creditors and Advances are subject to confirmation from the respective parties.

8. DISCLOSURE UNDER MICRO, SMALL AND MEDIUM ENTERPRISES DEVELOPMENT ACT, 2006:

As regards to the compliance of provisions relating to the dues to Micro, Small and Medium Enterprises in terms of Section 22 of the Micro, Small and Medium Enterprises Development Act, 2006, the Company has sent letters to the Creditors to confirm whether they are Micro, Small and Medium Enterprises. The Company is yet to receive the confirmations from them. Hence, the Company could not quantify the dues, if any to the Micro, Small and Medium Enterprises.

9. ADDITIONAL INFORMATION PURSUANT TO PARAGRAPHS 3 & 4 OF PART II OF SCHEDULE VI TO THE COMPANIES ACT 1956, (AS CERTIFIED BY A DIRECTOR:

A. PARTICULARS IN RESPECT OF GOODS MANUFACTURED:

Since the products involved are voluminous, according to the management it is not possible to give product wise details.

B. STOCKS, PURCHASES & SALES OF FINISHED GOODS:

Since the products involved are voluminous, according to the management it is not possible to give product wise details.

10. During the year the company has received Rs. 2,42,750/- towards electricity subsidy from APSEB pertaining to the financial year 2008-09 and the same was shown under Other Income.

11. During the year the board of directors proposed a dividend of 5% on paid up Share Capital.

12. During the year the company has amortized 20% of preliminary expenses i.e. Rs. 11,64,675/-.

13. During the year the following provisions were made:

14. Disclosure under clause 32 of the Listing Agreement:

(a) Loans and Advances in the nature of Loans to Subsidiary Company NIL

(b) Loans and Advances in the nature of Loans to Associate Company NIL

(c) Loans and Advances in the nature of Loans where there is:

(1) No repayment schedule or repayment beyond 7 years NIL

(2) No interest or interest below section 372 A of Companies Act NIL

(d) Loans and Advances in the nature of Loans to firms/companies

In which directors are interested Rs. 12,53,000

(e) Investment by the Loanee in the shares of the parent company

And subsidiary company, when the company has made a loan

Or advance in the nature of loan NIL

15. Previous year figures have been regrouped and rearranged wherever necessary.

16. All the amounts are rounded of to the nearest rupee.


Mar 31, 2010

1. SECURED LOANS:

a) Term Loans from Kamataka Bank Limited is secured by hypothecation of Plant & Machinery and other Fixed Assets and second charge on current assets of the Company and further secured by Personal Guarantee of Promoter Directors.

b) Cash Credit from Karnataka Bank Limited is secured by present and future raw materials, semi finished goods, finished goods, stores and secured second charge on Fixed Assets of the Company and further secured by personal guarantee of promoter Directors.

c) Vehicle Loans are secured by hypothecation of specified vehicles acquired.

2. During the year Sales Tax assessment for the financial year 2004-05 and 2007-08 was completed and an amount of Rs. 52,187 and Rs. 5,830 was paid against the demand of the department.

3. RESEARCH & DEVELOPMENT EXPENSES:

During the year the company has incurred revenue expenditure pertaining to Research and Development of Rs. 11,78,115/-. Revenue expenditure is shown under respective heads of expenditure. There is no capital expenditure on Research and Development.

4. EMPLOYEE STOCK OPTION SCHEME:

During the year the company has not issued any employee stock option scheme.

5. SALES TAX DEFERMENT:

The sales tax deferment liability amounting to Rs. 11,15,966/- shown under Unsecured Loans due for repayment from the financial year 2019 onwards. The Government of Andhra Pradesh has granted Sales Tax Deferment for a period of 14 years.

6. CONTINGENT LIABILITIES:

a) There were no contingent liabilities as on 31st March, 2010.

b) Estimated amount of contracts remaining to be executed on Capital Accounts and not provided for - NIL.

7. RELATED PARTY TRANSACTIONS:

Disclosure as required by Accounting Standard AS 18: Related party disclosures issued by the Institute of Chartered Accountant of India (ICAI) is follows:

(A) (i) Names of the transacting related parties.

SRI SAI KRISHNA MARKETING ASSOCIATES

(ii) Description of the relationship between the parties. Associate Firm.

(iii) Description of the nature of transaction.

Sales and purchases to/from associates firm in which directors are interested.

(iv) Volume of transaction:

Sales: Rs. 2,26,47,023/-

Purchases: Rs. 21,95,891/-

The above transactions are not related to the products, which are manufactured at the companys production facilities and it is only a trading transaction.

(v) Other elements of the related party transactions necessary for an understanding of the financial statements: NIL.

(vi) The amounts or appropriate proportions of outstanding items pertaining to related parties at the balance sheet date and provisions for doubtful debts due from such parties at that date: NIL.

(B) (i) Names of the transacting related parties.

ORTIN BIOTECH PRIVATE LIMITED

(ii) Description of the relationship between the parties. Associate Company.

(iii) Description of the nature of transaction.

Inter corporate Loan to associate Company in which directors are interested.

(iv) Volume of transaction:

Loan outstanding: Rs. 1,11,000/-

(v) Other elements of the related party transactions necessary for an understanding of the financial statements: NIL.

(vi) The amounts or appropriate proportions of outstanding items pertaining to related parties at the balance sheet date and provisions for doubtful debts due from such parties at that date: NIL.

8. SEGMENT REPORTING:

As the companys business activities falls within single segment viz., Pharmaceutical and allied Products the disclosure requirement of Accounting Standard 17 "Segment Reporting" issued by the Institute of Chartered Accountants of India is not applicable.

9. SHARE CAPITAL:

The paid up capital of the company is Rs. 3,67,04,000/- divided into 36,70,400 equity shares of Rs. 10/- each as on 31st March, 2010..

During the year 2010-11 the company has allotted 15,00,000 warrants to the Promoters & others at an issue price of Rs. 18/- each. Of which, 10,30,000 warrants are converted into 10,30,000 equity shares of Rs.10/- each with a premium of Rs.8/- per share.

10. In the opinion of the Board the Current assets, Loans and advances are approximately of the value stated if realized in the ordinary course of the business. The provision for depreciation and all known liabilities are adequate and not in excess of the amount considered reasonably necessary.

11. The balances shown against Sundry Debtors, Sundry Creditors and Advances are subject to confirmation from the respective parties.

12. DISCLOSURE UNDER MICRO, SMALL AND MEDIUM ENTERPRISES DEVELOPMENT ACT, 2006:

As regards to the compliance of provisions relating to the dues to Micro, Small and Medium Enterprises in terms of Section 22 of the Micro, Small and Medium Enterprises Development Act, 2006, the Company has sent letters to the Creditors to confirm whether they are Micro, Small and Medium Enterprises. The Company is yet to receive the confirmations from them. Hence, the Company could not quantify the dues, if any to the Micro, Small and Medium Enterprises.

13. ADDITIONAL INFORMATION PURSUANT TO PARAGRAPHS 3 & 4 OF PART II OF SCHEDULE VI TO THE COMPANIES ACT 1956, (AS CERTIFIED BY A DIRECTOR):

A. PARTICULARS IN RESPECT OF GOODS MANUFACTURED:

Since the products involved are voluminous, According to the management it is not possible to give product wise details.

B. STOCKS, PURCHASES & SALES OF FINISHED GOODS:

Since the products involved are voluminous, According to the management it is not possible to give product wise details.

14. During the year it was proposed to declare dividend of 8% per each equity share.

15. During the year the company has amortized 20% of preliminary expenses i.e. Rs. 9,58,000/-.

16. Previous year figures have been regrouped and rearranged wherever necessary.

17. All the amounts are rounded of to the nearest rupee.

 
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