Home  »  Company  »  Paushak Ltd.  »  Quotes  »  Notes to Account
Enter the first few characters of Company and click 'Go'

Notes to Accounts of Paushak Ltd.

Mar 31, 2022

Level 1: Level 1 hierarchy includes financial instruments measured using quoted prices. This includes listed equity instruments and mutual funds that have quoted price. The fair value of all equity instruments which are traded in the stock exchanges is valued using the closing price as at the reporting period. The mutual funds are valued using the closing NAV.

Level 2: The fair value of financial instruments that are not traded in an active market is determined using valuation techniques which maximise the use of observable market data and rely as little as possible on entity-specific estimates. If all significant inputs required to fair value an instrument are observable, the instrument is included in level 2.

Level 3: If one or more of the significant inputs is not based on observable market data, the instrument is included in level 3.

The Company''s policy is to recognise transfers into and transfers out of fair value hierarchy levels at the end of the reporting period. On account of change in valuation estimates, certain investments were transferred from level 3 to level 2 valuation hierarchy and vice versa during the previous year.

ii) Valuation technique used to determine fair value

Specific valuation techniques used to value financial instruments are as under:

a. The fair values of investments in mutual fund units is based on the net asset value (‘NAV'') as stated by the issuers of these mutual fund units in the published statements as at Balance Sheet date.

b. The fair values of quoted investment in equity shares is based on the current bid price of respective investment as at the Balance Sheet date.

c. The fair values of unquoted investment in equity shares of investee companies, including those having multiple business segments are derived as under:

- For investments of investee in listed securities, average closing price of the security for the previous six months from year end or the closing price as on the balance sheet date, as may be reflecting the correct position is considered.

- For investment in mutual funds, we have considered the NAV of the mutual funds as on Balance sheet date.

- For valuation of any land and property of investee, fair market value of the asset based on reports of experts is considered.

- For valuation of property purchased during current financial year, we have relied upon the stamp duty value as is taken in the financial statements.

- For investments of investee in unlisted non-operating companies, valuation is carried out on realizable net asset value basis, derived from the fair valuation of the underlying assets and liabilities or using DCF Method, in case if projections are made available.

- For valuation of any unlisted Cash Generating Unit / operating business of the investee, the valuation has been arrived by applying DCF method.

d. The fair values of unquoted investment in preference shares is arrived by discounting income/cash flows to its present value using the required rate of return and the cost of debt of Paushak Limited and returns expected on similar investments.

iii) Fair value measurements using significant unobservable inputs (level 3)

The following table represents the changes in level 3 items for the year ended 31st March, 2022.

v) Valuation Processes

Valuation of certain unquoted equity shares is done by an external valuation agency as per above valuation techniques.

P. Financial Risk management

The Company has exposure to the following risks arising from financial instruments:

- Credit risk;

- Liquidity risk; and

- Market risk

The Company''s risk management policies are established to identify and analyse the risks faced by the Company, to set appropriate risk controls and to monitor risks. Risk management policies and systems are reviewed periodically to reflect changes in market conditions and the Company''s activities. The Company monitors compliance with the Company''s risk management policies and procedures, and reviews the adequacy of the risk management framework in relation to the risks faced by the Company.

i) Credit risk

Credit risk is the risk of financial loss to the Company if a customer or counterparty to a financial instrument fails to meet its contractual obligations, and arises principally from the Company''s receivables from customers, deposit and other receivables. Credit risk is managed through continuous monitoring of receivables and follow up of overdues.

Investments

The Company limits its exposure to credit risk by generally investing in liquid securities and only with counterparties that have a good credit rating. The Company does not expect any losses from non-performance by these counter parties, and does not have any significant concentration of exposures to specific industry sector or specific country risks.

Trade receivables

The Company''s exposure to credit risk is influenced mainly by the individual characteristics of each customer, demographics of the customer, default risk of the industry and country in which the customer operates. Credit risk is managed through credit approvals, establishing credit limits and continuously monitoring the creditworthiness of customers to which the Company grants credit terms in the normal course of business.

The Company has used expected credit loss (ECL) model for assessing the impairment loss. For the purpose, the Company uses a provision matrix to compute the expected credit loss amount. The provision matrix takes into account external and internal risk factors and historical data of credit losses from various customers.

There are no credit impaired Trade Receivable as on 31st March, 2022.

Other than trade and other receivables, the Company has no other financial assets that are past due but not impaired.

ii) Liquidity risk

Liquidity risk is the risk that the Company will not be able to meet its financial obligation as they fall due. The Company ensures that it will have sufficient liquidity to meet its liabilities when they are due, under both normal and stressed conditions.

Maturities of Financial Liabilities

The table herewith analyses the Company''s Financial Liabilities into relevant maturity groupings based on their contractual maturities.

The amounts disclosed in the table are the contractual undiscounted cash flows. Balance dues within the 12 months equal there carrying balances as the impact of discounting is not significant.

iii) Market risk

Market risk is the risk that arises due to changes in market prices and other factors such as foreign exchange rates, interest rates and commodity risk. Market risk is also attributable to all market risk sensitive financial instruments including foreign currency receivables and payables and long term debt.

Price Risk

The Company is mainly exposed to the price risk due its investment in equity instruments and equity & debt mutual fund. The price risk arises due to unascertainity about the future market value of these investments.

Management Policy

The Company maintains its portfolio in accordance with framework set by risk management policies duly monitored by competent professionals.

Q. Capital Management

The Company''s capital management objectives are:

- to ensure the Company''s ability to continue as a going concern; and

- to provide an adequate return to shareholders through optimisation of debts and equity balance.

The Company monitors capital on the basis of the carrying amount of debt less cash and cash equivalents as presented on the face of the financial statements. The Company''s objective for capital management is to maintain an optimum overall financial structure.

R. Use of Estimates and Judgements

The preparation of the Company''s financial statements requires the management to make judgements, estimates and assumptions that affect the reported amounts of revenues, expenses, assets and liabilities, and the accompanying disclosures, and the disclosure of contingent liabilities. Actual results may differ from these estimates.

Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimates are revised and in any future periods affected. In particular, information about significant areas of estimation uncertainty and critical judgments in applying accounting policies that have the most significant effect on the amounts recognised in the financial statements is included in these notes.

S. Details of Hypothecation of Assets

No assets of the Company are hypothecated.

T. SEBI (Listing Obligation & Disclosure Requirements) Regulation 2015

Disclosures as required under Regulation 34(3) read with schedule V of the SEBI (Listing Obligation & Disclosure Requirements) Regulation 2015 have not been given as there are no such transactions with any such party.

U. Information on Dividend for the year

Dividends proposed or declared after the balance sheet date but before the financial statements have been approved by the Board of Director is not recognised as a liability at the balance sheet date. The Board of Director recommended final dividend of '' 12/- per equity share for the financial year ended on 31st March, 2022. The payment is subject to approval of shareholder in ensuing Annual General Meeting of the Company. (Previous year '' 6/- per equity share).

V. Relationship with Struck off Companies

The Company has no relationship with any struck off companies, other than the following struck off companies whose names are found in its register of members:

W. Other statutory information

i) The Company does not have any Benami property, where any proceeding has been initiated or pending against the Company for holding any Benami property.

ii) The Company does not have any charges or satisfaction which is yet to be registered with ROC beyond the statutory period.

iii) The Company has not traded or invested in Crypto currency or Virtual Currency during the year.

iv) The Company has not advanced or loaned or invested funds to any other person(s) or entity(ies), including foreign entities (Intermediaries) with the understanding that the Intermediary shall: (i) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Company (Ultimate Beneficiaries) or (ii) provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries.

v) The Company has not received any fund from any person(s) or entity(ies), including foreign entities (Funding Party) with the understanding (whether recorded in writing or otherwise) that the Company shall: (i) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party (Ultimate Beneficiaries) or (ii) provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

vi) The Company does not have any such transaction which is not recorded in the books of accounts and that has been surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961 (such as, search or survey or any other relevant provisions of the Income Tax Act, 1961).

vii) The Company holds all the title deeds of immovable property in its name.

viii) There is no Scheme of Arrangements approved by the Competent Authority in terms of sections 230 to 237 of the Companies Act, 2013.

ix) The Company is not declared as wilful defaulter by any bank or financial Institution or other lender.

x) The Company does not have any subsidiaries and hence compliance with number of layers of companies is not applicable.

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

AA. These Financial Statements were authorised for issue in accordance with the resolution of the Board of Directors at its meeting held on 6th May, 2022.


Mar 31, 2019

NOTES TO FINANCIAL STATEMENTS

Capital Redemption Reserve:

This reserve was created as per requirements of Companies Act, 2013 pursuant to buyback of equity shares and redemption of preference shares.

Securities Premium:

Securities Premium is used to record the premium on issue of shares.

General Reserve:

This reserve is created by transfer of a portion of the net profit.

FVOCI - Equity Investment Reserve:

The Company has elected to recognize changes in the fair value of certain investments in equity shares in other comprehensive income. These changes are accumulated within the FVTOCI equity investments reserve within equity.

FVOCI - Debt Investment Reserve:

The Company has elected to recognize changes in the fair value of certain investments in preference shares in other

NOTES TO FINANCIAL STATEMENTS

30. Other Explanatory Notes and Information

A. Capital & Other Commitment

Estimated amount of contracts remaining to be executed on capital accounts and not provided for (net of advances) Rs.310.11 lacs (Previous year for Rs.280.93 lacs).

F. Related Party Disclosures

List of Related Parties with whom the Company has entered into transactions during the year

a) Controlling Companies : Nirayu Pvt Limited

b) Subsidiary and Fellow Subsidiary: There is no subsidiary / fellow subsidiary company

c) Associate I Joint Venture Companies: There is no associate / joint venture company

d) Other Related Parties:

1 Alembic Pharmaceuticals Limited

2 Alembic Limited

3 Shreno Limited

4 Shreno Publications Limited

5 Sierra Investments Pvt. Ltd (up to 12.12.2017)

6 Whitefield Chemtech Pvt. Ltd (up to 12.12.2017)

e) Key Management Personnel:

1 Mr. Chirayu Amin - Chairman

2 Mr. Udit Amin - Non-Executive Director

3 Mr. Amit Goradia - Independent Director

4 Mr. Atul Patel - Independent Director

5 Mr. V. H. Gandhi - Independent Director

6 Dr.Shamita Amin - Independent Director

7 Mr. Abhijit Joshi - Whole Time Director & CEO

8 Mr. Kaushik Shah - Dy. Chief Financial Officer

9 Mr. Charandeep Singh Saluja - Company Secretary (upto 31.05.2018)

10 Ms.ManishaSaraf - Company Secretary(wef01.06.2018)

f) Relatives of Key Management Personnel:

1 Ms. YeraAmin

H. Corporate Social Responsibility

As per section 135 of the Companies Act, 2013, a company meeting the applicability threshold, needs to spend at least 2% of its average net profit for the immediately preceding three financial years on corporate social responsibility (CSR) activities. A CSR Committee has been formed by the Company as per the Act. The company spent Rs. 35.07 Lacs on various projects during the year. Please referto Annexure - Bin the Board’s Report.

(a) Gross amount required to be spent by the company during the year: Rs. 35.07 lacs (Previous Year Rs. 29.66 lacs)

(b) Amounts pent during the year on:

Level 1: Level 1 hierarchy includes financial instruments measured using quoted prices. This includes listed equity instruments and mutual funds that have quoted price. The fair value of all equity instruments which are traded in the stock exchanges is valued using the closing price as at the reporting period. The mutual funds are valued using the closing NAV.

Level 2: The fair value of financial instruments that are not traded in an active market is determined using valuation techniques which maximize the use of observable market data and rely as little as possible on entity-specific estimates. If all significant inputs required to fair value an instrument are observable, the instrument is included in level 2.

Level 3: If one or more of the significant inputs is not based on observable market data, the instrument is included in level 3.

The Company’s policy is to recognize transfers into and transfers out of fair value hierarchy levels at the end of the reporting period. On account of change in valuation estimates, certain investments have been transferred from level 3 to level 2 valuation hierarchy and vice versa during the current year,

ii) Valuation technique used to determine fair value

Specific valuation techniques used to value financial instruments is as under:

a. The fair values of investments in mutual fund units is based on the net asset value (‘NAV’) as stated by the issuers of these mutual fund units in the published statements as at Balance Sheet date.

b. The fair values of quoted investment in equity shares is based on the current bid price of respective investment as at the Balance Sheet date.

c. The fair values of unquoted investment in equity shares of investee companies, including those having multiple business segments are derived as under:

- For investments of investee in listed securities, the price of the security as listed on the stock exchange as on 31st March, 2019 is considered.

- For valuation of any land and property of investee, fair market value of the asset based on reports of experts is considered.

- For investments of investee in unlisted non-operating companies, valuation is carried out on realizable net asset value basis, derived from the fair valuation of the underlying assets and liabilities.

- For valuation of any unlisted Cash Generating Unit / operating business of the investee, the valuation has been arrived by applying DCF method.

d. The fair values of unquoted investment in preference shares is arrived by discounting income/cash flows to its present value using the required rate of return and the cost of debt of Paushak Limited and returns expected on similar investments,

iii) Fair value measurements using significant unobservable inputs (level 3)

The following table represents the changes in level 3 items for the period ended 31st March, 2019

v) Valuation Processes

Valuation of certain unquoted equity shares/preference shares is done by an external valuation agency as per above valuation techniques.

L. Financial Risk management

The Company has exposure to the following risks arising from financial instruments:

- Credit risk;

- Liquidity risk; and

- Market risk

The Company’s risk management policies are established to identify and analyse the risks faced by the Company, to set appropriate risk controls and to monitor risks. Risk management policies and systems are reviewed periodically to reflect changes in market conditions and the Company’s activities. The Company monitors compliance with the Company’s risk management policies and procedures, and reviews the adequacy of the risk management framework in relation to the risks faced by the Company.

i) Credit risk:

Credit risk is the risk of financial loss to the Company if a customer or counterparty to a financial instrument fails to meet its contractual obligations, and arises principally from the Company’s receivables from customers, deposit and other receivables. Credit risk is managed through continuous monitoring of receivables and follow up of overdoes.

Investments

The Company limits its exposure to credit risk by generally investing in liquid securities and only with counterparties that have a good credit rating. The Company does not expect any losses from nonperformance by these counter parties, and does not have any significant concentration of exposures to specific industry sector or specific country risks.

Trade receivables

The Company’s exposure to credit risk is influenced mainly by the individual characteristics of each customer, demographics of the customer, default risk of the industry and country in which the customer operates. Credit risk is managed through credit approvals, establishing credit limits and continuously monitoring the creditworthiness of customers to which the Company grants credit terms in the normal course of business.

The Company has used expected credit loss (ECL) model for assessing the impairment loss. For the purpose, the Company uses a provision matrix to compute the expected credit loss amount. The provision matrix takes into account external and internal risk factors and historical data of credit losses from various customers.

Other than trade and other receivables, the Company has no other financial assets that are past due but not impaired.

ii) Liquidity risk

Liquidity risk is the risk that the Company will not be able to meet its financial obligation as they fall due. The Company’s ensure that it will have sufficient liquidity to meet its liabilities when they are due, under both normal and stressed conditions.

Maturities of Financial Liabilities

The table herewith analyse the Company’s Financial Liabilities into relevant maturity groupings based on there contractual maturities for:

The amount disclosed in the table are the contractual undiscounted cash flows. Balance dues within the 12 months equal there carrying balances as the impact of discounting is not significant.

Contractual maturities of financial liabilities

iii) Market risk

Market risk is the risk that arises due to changes in market prices and other factors such as foreign exchange rates, interest rates and other price risk such as commodity risk. Market risk is also attributable to all market risk sensitive financial instruments including foreign currency receivables and payables and long term debt.

Price Risk

The Company is mainly exposed to the price risk due its investment in equity instruments and equity & debt mutual fund. The price risk arises due to unascertained about the future market value of these investments.

Management Policy

The Company maintains its portfolio in accordance with framework set by risk management policies duly monitored by competent professionals.

M. Captial Management

The Company’s capital management objectives are:

* to ensure the Company’s ability to continue as a going concern; and

* to provide an adequate return to shareholders through optimization of debts and equity balance.

The Company monitors capital on the basis of the carrying amount of debt less cash and cash equivalents as presented on the face of the financial statements. The Company’s objective for capital management is to maintain an optimum overall financial structure.

N. Use of Estimates and Judgments

The preparation of the Company’s financial statements requires the management to make judgments, estimates and assumptions that affect the reported amounts of revenues, expenses, assets and liabilities, and the accompanying disclosures, and the disclosure of contingent liabilities. Actual results may differ from these estimates.

Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognized in the period in which the estimates are revised and in any future periods affected. In particular, information about significant areas of estimation uncertainty and critical judgments in applying accounting policies that have the most significant effect on the amounts recognized in the financial statements is included in these notes.

O. Details of Hypothecation of Assets

Inventory and Debtors are Hypothecated as security for working capital borrowings.

P. SEBI (Listing Obligation & Disclosure Requirements) Regulation 2015

Disclosures as required under Regulation 34 (3) read with schedule V of the SEBI (Listing Obligation & Disclosure Requirements) Regulation 2015 have not been given as there are no such transactions with any such party.

Q. Information on Dividend for the year

Dividends proposed or declared after the balance sheet date but before the financial statements have been approved by the Board of Director for issue are not recognized as a liability at the balance sheet date. The Board of Director recommended final dividend of Rs. 51- per equity shares for the financial ended on 31st March, 2019.

The payment is subject to approval of shareholder in ensuing Annual General Meeting of the Company. (Previous year Rs. 3/- per equity shares)

Estimation of fair value: Method of Estimation

We have used the government guideline rates for the purposes of arriving at the fair value of land and for buildings we have used the corporation valuation for property tax.

There are no contractual obligations to purchase, construct or develop investment property.

*The company falls under the provisions of MAT u/s 115JB and the applicable Indian statutory tax rate for year ended March 31, 2019 is 21.55%.

T. Previous year’s figures have been regrouped / reclassified wherever necessary to correspond with the current year’s classification / disclosure.

U. These Financial Statements were authorized for issue in accordance with the resolution of the Board of Directors in its meeting held on 6th May, 2019.


Mar 31, 2018

1 Company Overview and Significant Accounting Policies:

1.1 Description of business

The company is a public company domiciled in India and is incorporated under the provisions of the Companies Act 1956. Its shares are listed on one recognised stock exchange in India. The registered office of the company is located at Alembic Road, Vadodara 390003, Gujarat. The company is dealing in Speciality Chemicals Business.

1.2 Basis of preparation of Financial Statements

The Financial statements of the Company have been prepared in accordance with Indian Accounting Standards (Ind AS) as prescribed under Section 133 of the Act to be read with Rule 3 of the Companies (Indian Accounting Standards) Rules, 2015 and Companies (Indian Accounting Standards) Amendment Rules, 2016.

For all periods up to and including the year ended 31st March, 2017 the Company prepared its financial statements in accordance with Indian IGAAP, Including accounting standard specified under section 133 of the Companies Act, 2013 read with rule 7 of Companies (Accounts) Rules, 2015. The financial statements of the year ended 31st March, 2018 are the first Financial Statements of the Company prepared in accordance with Ind AS based on the permissible options and exemptions available to the Company in terms of Ind AS 101 “First time adoption of Indian Accounting Standards” in Note No 1.4 (III). Reconciliations and descriptions of the effect of the transition have been summarised in Note No 1.4 (III). Accounting Policies have been consistently applied except where a newly issued accounting standard is initially adopted or a revision to an existing accounting policy hitherto in use.

1.3 Composition of financial statements

The financial statements are drawn up in INR, the functional currency of the company, and in accordance with IND AS presentation. The financial statements comprise:

- Balance Sheet

- Statement of Profit and Loss

- Statement of Cash Flow

- Statement of Changes in Equity

- Notes to Financial Statements

II Key accounting judgments, estimates and assumptions

In preparing these financial statements, management has made judgements, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, income and expense. Actual results may differ from these estimates.

Estimates are often based on complex judgments and assumptions that management believe to be reasonable, but estimates and underlying assumptions are reviewed on an ongoing basis. Any change in these estimates and assumptions will generally be reflected in the financial statements in current period or prospectively, unless they are required to be treated retrospectively under relevant accounting standards.

III First Time Adoption

a) Fair valuation of Equity investments

Under the previous IGAAP, investments in equity instruments and mutual funds were classified as long-term investments or current investments based on the intended holding period and reliability. Long-term investments were carried at cost less provision for other than temporary decline in the value of such investments. Current investments were carried at lower of cost and fair value.

Under Ind AS, Fair value changes with respect to investments in equity instruments designated as FVOCI have been recognised in FVOCI - Equity investments reserve as at the date of transition and subsequently as part of the other comprehensive income for the year ended 31st March 2017.

Under Ind AS, Fair value changes with respect to investments in debt instruments designated as FVOCI have been recognised in FVOCI - Debt investments reserve as at the date of transition and subsequently as part of the other comprehensive income for the year ended 31st March 2017.

Under Ind AS, Fair value changes with respect to financial assets which are not classified in any of the above categories are designated as FVTPL. The resulting fair value changes of these investments have been recognised in retained earnings as at the date of transition and subsequently in the profit or loss for the year ended 31st March 2017.

b) Deferred tax

Deferred tax have been recognised on the adjustments made on transition to Ind AS.

c) Property, plant and equipment

On transition to Ind AS, the company has elected to continue with the carrying value of all of its property, plant and equipment recognised as at 1st April, 2016 measured as per the previous IGAAP and use that carrying value as the deemed cost of the property, plant and equipment.

d) Investment properties

On transition to Ind AS, the company has elected to continue with the carrying value of all of its investment properties recognised as at 1st April, 2016 measured as per the previous IGAAP and use that carrying value as the deemed cost of investment properties.

e) Remeasurements of post-employment benefit obligations

In case of Gratuity, under Ind AS, re-measurements i.e. actuarial gains and losses and the return on plan assets, are recognised in other comprehensive income instead of profit or loss. In case of other post-employment benefit obligations, re-measurements are recognised in the Statement of profit or loss. Under the previous IGAAP, these re-measurements were forming part of the profit or loss for the year.

f) Excise duty

Under the previous IGAAP, revenue from sale of products was presented inclusive of excise duty. Under Ind AS, revenue from sale of goods is also presented inclusive of excise duty. The excise duty paid is charged to the statement of profit and loss as part of expenses.

g) Other comprehensive income

Under Ind AS, all items of income and expense recognised in a period should be included in profit or loss for the period, unless a standard requires or permits otherwise. Items of income and expense that are not recognised in profit or loss but are shown in the statement of profit and loss as ‘other comprehensive income’ includes remeasurements of defined benefit plans for gratuity and fair value gains or losses on FVOCI Equity Instruments and on FVOCI Debt Instruments. The concept of other comprehensive income did not exist under previous IGAAP.

h) Statement of Reconciliations Between the IGAAP and Ind AS

The following reconciliations provides the effect of transition to Ind AS from IGAAP in accordance with Ind AS 101.

i) Equity as at 1st April, 2016 and 31st March, 2017

ii) Net Profit for the year ended 31st March, 2017

Explanations for reconciliation of Balance Sheet as previously reported under IGAAP to Ind AS

A. Regrouping of Property, Plant and Equipment to Investment Property.

B. a) Investments in Equity instruments not held for trading are carried at fair value through OCI in Ind AS.

b) Investments in Debt instruments not held for trading are carried at fair value through OCI in Ind AS.

C. Change in Fair value of Investments held for trading routed through Profit and Loss in Ind AS.

D. Other Equity:

a) Adjustments reflect final dividend (including corporate dividend tax), declared and approved post reporting period.

b) Adjustment includes impact of fair value of Current financial Investments held for trading.

c) As per Ind AS 19 Employee Benefits, acturial gains and losses are recognised in other comprehensive income.

E. Deferred Tax Liabilities (net) in relation to Investment in Debt and Equity instruments not held for trading.

F. Regrouping of Other Financial Liabilities and Current Liabilities.

G. Provisions: Adjustments reflect dividend (including corporate dividend tax), declared and approved post reporting period.

ii) Reconciliation Statement of profit and Loss as previously reported under IGAAP and to Ind AS for the year ended 31st March, 2017

Explanations for reconciliation of Statement of Profit and Loss as previously reported under IGAAP to Ind AS

H. a) Reflect impact of financial asset and liability consider at amortised cost.

b) Effect of investment held for trading valued at fair value routed through Profit and Loss accounts

c) Revenue from operation shown including excise duty and other regrouping.

I. As per Ind AS 19 Employee Benefits, acturial gains and losses are recognised in other comprehensive income and not reclassified to profit and Loss in a subsequent period.

J. Previous IGAAP are regrouped as per requirement of Ind AS.

K. Tax component on acturial gains and losses and Fair valuation of Investments held for trading which is transferred to other comprehensive income under Ind AS.

(iii) Impact of Ind AS adoption on the statement of Cash Flow for the year ended 31st March 2017 The transaction from previous IGAAP to Ind AS has not affected the cash flows of the company.

2. Recent Accounting Pronoucements:

Ind AS 115. Revenue from contracts with Customers

On 28th March, 2018, Ministry of Corporate Affairs (MCA), has notified the Ind AS 115, Revenue from contracts with Customers. The core principal of new standard is that an Entity should recognise the revenue to depict the transfer of promised goods or services to Customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods and services. Further, the new standard requires enhanced disclosures about the nature, amount, timing and uncertainity of revenue and cash flow arising from the entity’s contracts with customers. The effective date for adoption of Ind AS 115 is financial period beginning on or after 1st April, 2018. The Company will adopt the standard on 1st April, 2018 using cummulative catchup transition method and accordingly comparative for the year ending or ended 31st March, 2018 will not be retrospectively adjusted. The effect on adoption of Ind AS 115 on the operation of the Company is being assessed by the Company.

Note 1: During the year, 33,333 Equity Shares of Rs. 100/- each have been allotted by Shreno Limited on 16.11.2017 upon conversion of the 99,999; 1% Optionally Convertible Preference Shares (OCPS) of Rs. 400/- each held by the Company into Equity shares of Rs. 100/- each in the ratio of 1 Equity Share for every 3 OCPS.

Note 2: During the year, upon the amalgamation of Whitefield Chemtech Pvt. Ltd. (WCPL) and Sierra Investments Pvt. Ltd. (SIPL), with Nirayu Private Limited (NPL), 9,919 and 1,27,134 Preference Shares of Rs. 100/- each at a premium of Rs. 900/- each, have been allotted by NPL in exchange of 1,150 equity shares of Rs. 10/- each held in WCPL and 28,252 equity shares of Rs. 10/- each held in SIPL, respectively, held by the Company as on the record date. The shares held in WCPL and SIPL stood cancelled.

(c) Reconciliation of the number of shares outstanding at the beginning and at the end of the reporting period :

Since there is no change in the number of shares outstanding at the beginning and at the end of the reporting period, no reconciliation statement has been prepared.

(d) The rights, preferences and restrictions including restrictions on the distribution of dividends and the repayment of capital:

The Company is having only one class of shares i.e Equity carrying a nominal value of Rs.10/- per share. Every holder of the equity share of the Company is entitled to one vote per share held. In the event of liquidation of the Company, the equity shareholders will be entitled to receive remaining assets of the Company after the distribution / repayment of all creditors. The distribution to the equity shareholders will be in proportion of the number of shares held by each shareholder.

(f) Buy-back of Shares

The Board of Directors had approved the proposal for Buy-back of Equity Shares at its meeting held on 24th January, 2018. The same was approved by the members through Postal Ballot, the result of which was declared on 12th March, 2018. In furtherance to the said approval, the Company has issued an Letter of Offer dated 16th April, 2018 to eligible shareholders and the last date of settlement is 23rd May, 2018.

*With effect from 1st July, 2017 Goods and Service Tax (GST) was introduced and hence, the revenue from operations for the period 01.07.17 to 31.03.18 is net of GST. However, the revenue from operations for the period of 01.04.17 to 30.06.17 includes excise duty recovered on sales of Rs. 132.77 lacs and for the year ended 31st March, 2017 includes excise duty recovered on sales of Rs. 566.45 lacs.

2 Other Explanatory Notes and Information

A. Capital & Other Commitment

Estimated amount of contracts remaining to be executed on capital accounts and not provided for (net of advances) Rs.280.93 lacs (Previous year for Rs.233.69 lacs).

B. Contingent Liabilities:

A description of methods used for sensitivity analysis and its Limitations:

Sensitivity analysisis performed by varyinga single parameter while keeping all the other parameters unchanged. Sensitivity analysis fails to focus on the interrelationship between underlying parameters. Hence, the results may vary if two or more variables are changed simultaneously. The method used does not indicate anything about the likelihood of change in any parameter and the extent of the change if any.

F. Related Party Disclosures

List of Related Parties with whom the Company has entered into transcations during the year.

a) Controlling Companies : There is no controlling company

b) Subsidiary and Fellow Subsidiary: There is no subsidiary / fellow subsidiary company

c) Associate / Joint Venture Companies: There is no associate / joint venture company

d) Other Related Parties:

1 Alembic Pharmaceuticals Limited

2 Alembic Limited

3 Shreno Limited

4 Nirayu Pvt. Limited

5 Shreno Publications Limited

6 Sierra Investments Pvt. Ltd (upto 12.12.2017)

7 Whitefield Chemtech Pvt. Ltd (upto 12.12.2017)

d) Key Management Personnel

1 Mr. Chirayu Amin - Chairman

2 Mr. Udit Amin - Non-Executive Director

3 Mr. Amit Goradia - Independent Director

4 Mr. Atul Patel - Independent Director

5 Mr. V. H. Gandhi - Independent Director

6 Dr. Shamita Amin - Independent Director

7 Mr. Abhijit Joshi - Whole Time Director & CEO

8 Mr. Charandeep Singh Saluja - Company Secretary

9 Mr. Kaushik Shah - Dy. Chief Financial Officer

H. Corporate Social Responsibility

As per section 135 of the Companies Act, 2013, a company, meeting the applicability threshold, needs to spend at least 2% of its average net profit for the immediately preceding three financial years on corporate social responsibility (CSR) activities. A CSR Committee has been formed by the Company as per the Act. The company spent Rs. 29.66 Lacs on various projects during the year. Please refer to Annexure - B in the Board’s Report.

(a) Gross amount required to be spent by the company during the year: Rs. 29.66 lacs (Previous Year Rs. 30.73 lacs)

Level 1: Level 1 hierarchy includes financial instruments measured using quoted prices. This includes listed equity instruments and mutual funds that have quoted price. The fair value of all equity instruments which are traded in the stock exchanges is valued using the closing price as at the reporting period. The mutual funds are valued using the closing NAV.

Level 2: The fair value of financial instruments that are not traded in an active market is determined using valuation techniques which maximise the use of observable market data and rely as little as possible on entity-specific estimates. If all significant inputs required to fair value an instrument are observable, the instrument is included in level 2.

Level 3: If one or more of the significant inputs is not based on observable market data, the instrument is included in level 3.

There are no transfers between levels 1 and 2 during the year.

The Company’s policy is to recognise transfers into and transfers out of fair value hierarchy levels at the end of the reporting period.

ii) Valuation technique used to determine fair value

Specific valuation techniques used to value financial instruments include:

- the use of quoted market prices or dealer quotes for similar instruments

- the fair value of the remaining financial instruments is determined using discounted analysis

iii) Fair value measurements using significant unobservable inputs (level 3)

The following table represents the changes in level 3 items for the period ended 31st March, 2018 & 31st March, 2017.

v) Valuation Processes

Valuation of unquoted equity shares/preference shares is done by an external valuation agency.

The main level 3 inputs for unlisted equity securities used by the Company are derived and evaluated as follows:

- Discount rates are determined using a capital asset pricing model to calculate a pre-tax rate that reflects current market assessments of the time value of money and the risk specific to the asset.

- Earnings growth factor for unlisted equity securities are estimated based on market information for similar types of companies.

- Changes in level 2 and 3 fair values are analysed at the end of each reporting period.

L. Financial Risk management

The Company has exposure to the following risks arising from financial instruments:

- Credit risk;

- Liquidity risk; and

- Market risk

The Company’s risk management policies are established to identify and analyse the risks faced by the Company, to set appropriate risk controls and to monitor risks. Risk management policies and systems are reviewed periodically to reflect changes in market conditions and the Company’s activities. The Company monitors compliance with the company’s risk management policies and procedures, and reviews the adequacy of the risk management framework in relation to the risks faced by the Company.

i) Credit risk:

Credit risk is the risk of financial loss to the Company if a customer or counterparty to a financial instrument fails to meet its contractual obligations, and arises principally from the Company’s receivables from customers, deposit and other receivables. Credit risk is managed through continuous monitoring of receivables and follow up of overdues.

Investments

The Company limits its exposure to credit risk by generally investing in liquid securities and only with counterparties that have a good credit rating. The Company does not expect any losses from non-performance by these counter parties, and does not have any significant concentration of exposures to specific industry sector or specific country risks.

Trade receivables

The Company’s exposure to credit risk is influenced mainly by the individual characteristics of each customer, demographics of the customer, default risk of the industry and country in which the customer operates. Credit risk is managed through credit approvals, establishing credit limits and continuously monitoring the creditworthiness of customers to which the Company grants credit terms in the normal course of business.

The Company has used expected credit loss (ECL) model for assessing the impairment loss. For the purpose, the Company uses a provision matrix to compute the expected credit loss amount. The provision matrix takes into account external and internal risk factors and historical data of credit losses from various customers.

Other than trade and other receivables, the Company has no other financial assets that are past due but not impaired.

ii) Liquidity risk

Liquidity risk is the risk that the Company will not be able to meet its financial obligation as they fall due. The Company’s ensure that it will have sufficient liquidity to meet its liabilities when they are due, under both normal and stressed conditions.

Maturities of Financial Liabilities

The table herewith analyse the Company’s Financial Liabilities into relevant maturity groupings based on there contractual maturities for:

The amount disclosed in the table are the contractual undiscounted cash flows. Balance dues within the 12 months equal there carrying balances as the impact of discounting is not significant.

iii) Market risk

Market risk is the risk that changes in market prices - such as foreign exchange rates, interest rates and other price risk such as commodity risk. Market risk is attributable to all market risk sensitive financial instruments including foreign currency receivables and payables and long term debt.

Price Risk

The Company is mainly exposed to the price risk due its investment in equity instruments and equity & debt mutual fund. The price risk arises due to unascertainity about the future market value of these investments Management Policy

The Company maintains its portfolio in accordance with framework set by risk management policies duly monitored by competent professionals.

M. Captial Management

The Company’s capital management objectives are:

* to ensure the Company’s ability to continue as a going concern; and

* to provide an adequate return to shareholders through optimisation of debts and equity balance.

The Company monitors capital on the basis of the carrying amount of debt less cash and cash equivalents as presented on the face of the financial statements. The Company’s objective for capital management is to maintain an optimum overall financial structure.

N. Use Of Estimates And Judgements

The preparation of the Company’s financial statements requires the management to make judgements, estimates and assumptions that affect the reported amounts of revenues, expenses, assets and liabilities, and the accompanying disclosures, and the disclosure of contingent liabilities. Actual results may differ from these estimates.

Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimates are revised and in any future periods affected. In particular, information about significant areas of estimation uncertainty and critical judgments in applying accounting policies that have the most significant effect on the amounts recognised in the financial statements is included in these notes.

O. Details of Hypothecation of Assets

Inventory and Debtors are Hypothecated as security for working capital borrowings.

P. Commission to Non-Executive Director

Remuneration of Rs. 50 Lacs to the Non-Executive Director is subject to approval of shareholders in the ensuing Annual General Meeting.

Q. SEBI (Listing Obligation & Disclosure Requirements) Regulation 2015

Disclosures as required under Regulation 34 (3) read with schedule V of the SEBI (Listing Obligation & Disclosure Requirements) Regulation 2015 have not been given as there are no such transactions with any such party.

R. Information on Dividend for the year

Dividends proposed or declared after the balance sheet date but before the financial statements have been approved by the Board of Director for issue are not recognised as a liability at the balance sheet date. The Board of Director recommended final dividend of Rs. 3/- per equity shares for the financial ended on 31st March, 2018. The payment is subject to approval of share holder in ensuing Annual General Meeting of the Company. (Previous year Rs. 3/- per equity shares)

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

V. These Financial Statements were authorised for issue in accordance with the resolution of the Board of Directors in its meeting held on 17th May, 2018.


Mar 31, 2016

1. Capital & Other Commitment:

(a) Estimated amount of contracts remaining to be executed on capital accounts and not provided for (net of advances) Rs.569.78 lacs (Previous year for Rs.57.01 lacs).

(b) The Company has entered into an Option Purchase Agreement for a parcel of land at Bangalore with a real estate developer. The Company has invested Rs.850 lacs towards acquiring Option Rights having total value of Rs.1,894.86 lacs. The balance commitment towards option purchase Agreement is Rs.1,044.86 lacs net of advance paid (Previous Year Rs.1,044.86 lacs). The Company can exercise its Option Rights at any time before the expiry of 48 Months from the date of execution i.e. 21-06-2013 of the Agreement.

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


Mar 31, 2014

1 Estimated amount of contracts remaining to be executed on capital accounts and not provided for (net of advances) Rs.176.97 lacs (Previous year for Rs.35.55 lacs)

2 Contingent Liabilities : Amount (Rs.)

Sr. No. Particulars 2013-2014 2012-2013

i) Disputed claims for excise duty 12,229,402 11,212,163

ii) Income Tax 731,756 364,216

3 The Company has entered in to a Option Purchase Agreement for a parcel of land at Bangalore with Real Estate Developer. The Company has given deposits of Rs. 8,50,00,000/- towards acquiring Option Rights having Total Value of Rs. 18,94,86,000/-. The Company can exercise its Option Rights at any time before the expiry of 48 Months from the date of execution i.e. 21-06-2013 of the Agreement.

4 Segment Reporting :

a) Primary Segment:

The Company has identified "Speciality Chemicals" as the only primary reportable segment.

b) Secondary Segment (By Geographical Segment)

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


Mar 31, 2013

1 Estimated amount of contracts remaining to be executed on capital accounts and not provided for (net of advances) Rs. 35.55 lacs (Previous year for Rs.18.66 lacs)

2 Contingent Liabilities : (Rs.)

No. Particulars 2012-2013 2011-2012

i) Disputed claims for excise duty 1,12,12,163 1,07,29,373

ii) Income Tax 3,64,216 1,00,620

2. Micro, Small and Medium Enterprises Development Act, 2006

As per requirement of Section 22 of Micro, Small & Medium Enterprises Development Act, 2006 following information is disclosed to the extent identifiable:

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


Mar 31, 2012

(a) Reconciliation of the number of shares outstanding at the beginning and at the end of the reporting period :

Since there is no change in the number of shares outstanding at the beginning and at the end of the reporting period, no reconciliation statement has been prepared.

(b) The rights, preferences and restrictions including restrictions on the distribution of dividends and the repayment of capital:

The company is having only one class of shares i.e Equity carrying a nominal value of Rs10/- per share.

Every holder of the equity share of the Company is entitled to one vote per share held.

In the event of liquidation of the Company, the equity shareholders will be entitled to receive remaining assets of the Company after the distribution / repayment of all creditors. The distribution to the equity shareholders will be in proportion of the number of shares held by each shareholder.

1 Estimated amount of contracts remaining to be executed on capital accounts and not provided for (net of advances) Rs18.66 Lacs (Previous year for Rs 39.31 Lacs)

2 Contingent Liabilities: (Rs.)

Sr. Particulars 2011-2012 2010-2011 No.

i) Bond guarantees for two body corporate - 73,21,469

ii) Disputed claims for excise duty 1,07,29,373 78,33,919

iii) Income Tax 1,00,620 2,94,165

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


Mar 31, 2011

1 Estimated amount of contracts remaining to be executed on capital accounts and not provided for (net of advances) Rs.39.31 lacs (Previous year for Rs.50.60 lacs)

2. Contingent Liabilities :

Sr. No. Particulars 2010-2011 2009-2010

i) Bond guarantees for two body 73,21,465 73,21,469 corporate

ii) Disputed claims for excise 78,33,919 63,97,241 duty

iii) Income Tax 2,94,165 24,76,557

3. Previous year's figures have been regrouped / re-arranged wherever necessary, to make them comparable with current year figures.


Mar 31, 2010

1. Estimated amount of contracts remaining to be executed on capital accounts and not provided for (net of advances) Rs. 50.60 lacs (Previous year for Rs. Nil)

2. Contingent Liabilities:

Sr. No. Particulars 2009-2010 2008-2009

i) Bond guarantees for two bodies corporate 73,21,469 73,21,469

ii) Disputed claims for excise duty 63,97,241 43,05,948

iii) Income Tax 24,76,557 28,82,155

3.The company has accounted for Deferred Tax in accordance with the Accounting Standards -22 "Accounting for Taxes on Income".This has resulted in a Deferred Tax Asset (Net)amounting to Rs.1,15,74,898/-as at the year end.Deferred Tax for the Current Year amounting to Rs.5,91,688/-has been recognized in the Profit and Loss Account under provision for Taxation.

4.Previous years figures have been regrouped /re-arranged wherever necessary,to make them comparable with current year figures.

Get Instant News Updates
Enable
x
Notification Settings X
Time Settings
Done
Clear Notification X
Do you want to clear all the notifications from your inbox?
Settings X