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Notes to Accounts of Poddar Pigments Ltd.

Mar 31, 2015

1.1 Nature of security

Working capital borrowings are secured by charge by way of hypothecation on entire current assets including stocks & receivables on first pari passu basis and charge on fixed assets of company located at Jaipur plant on first pari passu hypothecation charge basis.

Note No. 2 : COMMITMENTS

(A) Capital commitment

Estimated amount of contracts remaining to be executed on Capital Account and not provided for Rs. 6.75 lacs (2013-14 Rs. 40.12 lacs), and advance given Rs. 2.43 lacs (previous year Rs. 25.01 lacs)

(B) Other Commitment - NIL

Note No. 3 : CONTINGENT LIABILITIES TO THE EXTENT NOT PROVIDED FOR IN RESPECT OF

(Rs. In lacs)

As at As at 31st March, 2015 31st March, 2014

(A) Claim against company not acknowledged as Debts:-

(i) Income Tax matters in appeals 22.32 16.36

(ii) Sales Tax demands not admitted by the company and for which 0.23 5.88 appeals have been filed with appropriate authorities.

(iii) Service Tax demand not admitted by the company and for 35.43 4.17 which appeals have been filed with appropriate authorities.

(iv) Excise duty demand not admitted by the company and for which 2.21 - appeals have been filed with appropriate authorities.

(B) Guarantees:-

(i) Letter of Credit against purchase of raw materials 1,056.80 1,237.91

(ii) Bonds Executed with Customs & Excise Authorities 30.00 30.00

(C) Other Contingent Liabilities

Bill discounting with banks - 4.07

Note No.4 A: Show Cause Notice in respect of refund of Excise duty on exports:-

The Company has been served certain Show Cause Notices from the taxation authorities in respect of claim for refund of duties paid on exports which are being contested and the company is confident that the said show Cause Notices shall be withdrawn as the basis on which such notices have been issued are not tenable in the eyes of the law based upon the rejection of the appeals vide its order dt. 21/17-04-2015 by the Commissioner (Appeals), Jaipur in the similar matter and nature field by the Department against the Company and various circulars/case laws issued/ decided from time to time (Rs. 286.95 Lacs).

Note No. 5: Details of Suppliers covered under the Micro, Small and Medium Enterprises Development Act, 2006, and which have furnished the information regarding filing of necessary memorandum with appointed authority is as under:-

(a) Amount outstanding at the year end -Rs. NIL (Previous Year Rs. NIL)

(b) Interest payable on delayed payments -Rs. NIL (Previous Year Rs. NIL)

Note No. 6 : In Respect of Claim Receivable:

The Company had lodged claim with Insurance Company / IOC / RIICO on account of damages /loss caused due to fire in IOC Depot adjacent to Sitapura factory at Jaipur in October, 2009. Till date claim filed with Insurance Company has been settled & received. However, claim with RIICO is under legal process, as the appeal of the company is lying in the court of law. Claim filed with IOC is at advance stage of settlement and the company is hopeful of full recovery of the claim.

Note No. 7 : Pursuant to Companies Act, 2013 ("the Act"), being effective from 1st April, 2014, the Company has revised depreciation rates on fixed assets as per the useful life specified in part"C" of Schedule II of the Act. As a result of the change, the depreciation charge is higher by Rs. 38.70 Lacs for the year ended 31st March, 2015. Further, an amount of Rs. 32.18 lacs (net of deferred tax of Rs. 16.57 Lacs) has been recognized in the opening balance of the retained earnings by adjusting in retained earning for the assets where remaining useful life as per schedule II of the said act has become nil as on 01.04.2014.

Note No. 8 : SEGMENT REPORTING

A. Geographical Segment (Primary Segment)

Since the Export operations contribute more than 10 % of the company's total revenue, the Geographical Segment has been considered as primary segment and for that disclosure has been divided into sales within India (Sales to customers located within India) and sales outside India (sales to customers located out side India ) as per accounting standard 17. The relevant information is as under-

B. Capital Employed

Assets used in the Company's business are not capable of being specifically identified with any of the segments and it is not practicable to provide segmental disclosures in relation to total assets and liabilities with any reasonable degree of accuracy.

B. Business Segment (Secondary Segment)

The Company is in the business of manufacture of Masterbatches and Engineering Plastic Compounds. Since the operations of Engineering Plastic Compounds contributes less than 10 % of the company's total revenue/profits, the operations of Masterbatches is treated as one reportable business segment.

Note No. 9 : RELATED PARTY DISCLOSURES Pursuant to AS-18, following related parties have been identified

A. Names of the Related parties "Holding Significant Influence" and "Key Management Personnel" under the Accounting Standard (AS-18) are as under:- -

i. Parties holding significant influence

(I) M/s.Trustline Capital Finance Pvt. Ltd. (II) Pluto Trade links Ltd. (Ill) GKS Logistics Pvt. Ltd. (IV) G.K.S. Holdings Ltd.

ii. Key Management Personnel

ShriS.S. Poddar - Managing Directors CFO

Shri R. K. Sureka - Director & CEO

iii Relatives of the Key Management Personnel

Smt. Sushma Sureka - Wife of Director & CEO

Smt. Mahima P. Agarwal - Director of the Company and daughter of Managing Director & CFO

Ms. Rochna Poddar - Daughter of Managing Directors CFO

Shri Abhinav Sureka - Son of Directors CEO

Note No. 10 : EMPLOYEE BENEFITS

The Company has calculated the various benefits provided to employees as under:- '

A) Defined Contribution Plans Provident Fund

During the year the Company has recognised the following amounts in the statement of Profit and Loss Account:

C) Defined Benefit Plans

a) Gratuity

b) Leave Encashment

The discount rate assumed is 8 % which is determined by reference to market yield at the Balance Sheet date on Government bonds. The estimates of future salary increase considered in actuarial valuation, taking account of inflation, seniority promotion and other relevent factors, such as supply and demand in the employment market. Reconcilation of opening and closing balances of the present value of the defined benefit obligation:

Note No. 11 : FINANCIAL AND DERIVATIVE INSTRUMENTS

(b) Derivative instruments

The Company uses foreign currency forward contracts to hedge its risks associated with foreign currency fluctuations relating to certain firm commitments and forecasted transactions. The use of foreign currency forward contracts is governed by the Company's strategy, approved by the board of directors, which provides principles on the use of such forward contracts consistent with the Company's Risk Management Policy. The Company does not use forward contracts for speculative purposes.

Note No. 12 ; Previous year figures have been regrouped/rearranged wherever considered necessary to conform current year classification.


Mar 31, 2014

Note No. 1 : SHORT-TERM BORROWINGS

Nature of security

1.1 Working capital borrowings are secured by (i) charge by way of hypothecation on entire current assets including stocks & receivables on first pari passu basis, and (ii) charge on fixed assets on second pari passu basis.

Terms of repayment

1.2. Buyers credit in foreign currency repayable as per the terms of agreement has been fully paid during the year.

Note 2.1. Plant & machinery of Rs. NIL (previous year Rs. 29.56 lacs ) has been capitalized on account of foreign exchange variation during the year following the notification of MCA dated 31.03.2009 ( as amended vide notification no. F. No.17/133/2008-CL.V dated 29.12.2011) relating to AS-11 on " The effect of changes in foreign exchange rates".

Note 2.2. Plant & Machinery includes Rs. 1,072.45 lacs being R & D Equipments, out of which Rs. 49.78 lacs was purchased during the year and is net of Rs. 8.30 lacs sold during the year.

Note No. 3: EXCEPTIONAL ITEMS

Note No. 3.1. Loss of Rs. 96.86 lacs is net of profit of Rs. 14.25 lacs on sale of 1,83,100 equity shares held in the capital of Rajasthan Petro Synthetics Limited, the value of which was written off in the financial year 2005-06 in view of no intrinsic value of the investee company.

Note No. 4 : COMMITMENTS

(A) Capital commitment

Estimated amount of contracts remaining to be executed on Capital Account and not provided for Rs. 40.12 lacs (2012-13 Rs. 14.04 lacs), and advance given Rs. 25.01 lacs (previous year Rs. 3.95 lacs)

(B) Other Commitment - NIL

Note No. 5 : CONTINGENT LIABILITIES TO THE EXTENT NOT PROVIDED FOR IN RESPECT OF:

(Rs. In lacs)

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

(A) Claim against company not acknowledged as debts:-

(i) Income Tax matters in appeals 16.36 13.22

(ii) Sales Tax demands not admitted by the company and for which 5.88 4.79 appeals have been filed with appropriate authorities.

(iii) Service Tax demand not admitted by the company and for 4.17 3.12 which appeals have been filed with appropriate authorities.

(B) Guarantees:-

(i) Bank Guarantees 0.76

(ii) Letter of Credit against purchase of raw materials 1,237.91 1,354.10

(iii) Bonds Executed with Customs & Excise Authorities 30.00 30.00

(C) Other Contingent Liabilities:-

(i) Bill discounting with banks (since realised Rs. 4.07 lacs 4.07 244.21 (2012-13 Rs. 244.21 lacs )

Note No.6 A : Show Cause Notice in respect of refund of Excise duty on exports:-

The Company has been served certain Show Cause Notices from the taxation authorities in respect of refund of claim of duties paid on exports which are being contested and the company is confident that the said show Cause Notices shall be withdrawn as the basis on which such notices have been issued are not tenable in the eyes of the law based upon the various circulars/case laws.

Note No. 7 : Details of Suppliers covered under the Micro, Small and Medium Enterprises Development Act, 2006, and which have furnished the information regarding filing of necessary memorandum with appointed authority is as under:- (a) Amount outstanding at the year end - Rs. NIL (Previous Year Rs. NIL) (b) Interest payable on delayed payments - Rs. NIL (Previous Year Rs. NIL)

Note No. 8 : The Company had lodged claim with Insurance Company / IOC / RIICO on account of damages /loss caused due to fire in IOC Depot adjacent to Sitapura factory at Jaipur in October, 2009. Till date claim filed with Insurance Company has been settled & received. However, claim with RIICO is under legal process, as the appeal of the company is lying in the court of law. Claim filed with IOC is at advance stage of settlement and the company is hopeful of full recovery of the claim.

Note No. 9 : FINANCIAL AND DERIVATIVE INSTRUMENTS

(b) Derivative instruments

The Company uses foreign currency forward contracts to hedge its risks associated with foreign currency fluctuations relating to certain firm commitments and forecasted transactions. The use of foreign currency forward contracts is governed by the Company''s strategy, approved by the board of directors, which provides principles on the use of such forward contracts consistent with the Company''s Risk Management Policy. The Company does not use forward contracts for speculative purposes.

B. Business Segment (Secondary Segment)

The Company is in the business of manufacture of Masterbatches and Engineering Plastic Compounds. Since the operations of Engineering Plastic Compounds contributes less than 10 % of the company''s total revenue/profits, the operations of Masterbatches is treated as one reportable business segment.

Note No.10: Previous year figure have been regrouped/rearranged wherever considered necessary to conform current year classification.


Mar 31, 2013

Corporate Information

Poddar Pigments Limited (the Company) is a public limited company domiciled in India, incorporated under the provisions of Companies Act, 1956. Its shares are listed on Bombay Stock Exchange. The Company is a manufacturer of Color & Additive Master batches for dope dyeing of man- made fibers and various plastic applications.

Note No. 1 : COMMITMENTS

(A) Capital commitment

Estimated amount of contracts remaining to be executed on Capital Account and not provided for Rs. 14.04 lacs (2011-12 Rs. 44.27 lacs) and advance given Rs. 3.95 lacs (previous year Rs. 5.59 lacs)

(B) Other Commitment - NIL

Note No. 2 : CONTINGENT LIABILITIES TO THE EXTENT NOT PROVIDED FOR IN RESPECT OF:

(Rs. In lacs) As at As at 31st March, 2013 31st March, 2012

(A) Claim against company not acknowledged as debts:-

(i) Income Tax matters in appeals 13.22 7.80

(ii) Sales Tax demands not admitted by the company and for which 4.79 9.27 appeals have been filed with appropriate authorities.

(iii) Service Tax demand not admitted by the company and for 3.12 which appeals have been filed with appropriate authorities.

(B) Guarantees:-

(i) Bank Guarantees 0.76 1.90

(ii) Letter of Creditagainstpurc hase of rawmaterial 1,354.10 847.60

(iii) Bonds Executed with Customs & Excise Authorities 30.00 30.00

(C) Other Contingent Liabilities:-

(i) Bill discounting with banks (since realised Rs. 223.34 lacs) 244.21 40.84 [2011-12 Rs. 40.84 lacs])

Note No. 3 : Details of Suppliers covered under the Micro, Small and Medium Enterprises Development Act, 2006, and which have furnished the information regarding filing of necessary memorandum with appointed authority is as under: -

(a)Amount outstanding at the year end -Rs. NIL (Previous Year Rs. NIL)

(b)lnterest payable on delayed payments - Rs. NIL (Previous Year Rs. NIL)

Note No. 4: The Insurance claim filed with Insurance Company / IOC on account of damages/ loss Caused due to fire in IOC Depot adjacent to our Sitapura Factory at Jaipur in Oct, 2009 is under process of settlement, part of which was already settled and received. The Management is hopeful of realization of the claim amount in full.

Note No. 5 : SEGMENT REPORTING

A. Geographical Segment (Primary Segment)

Since the Export operations contribute more than 10 % of the company''s total revenue, the Geographical Segment has been considered as primary segment and for that disclosure has been divided into sales within India ( sales to customers located within India) and sales outside India (sales to customers located out side India ) as per accounting standard 17. The relevant information is as under: -

B. Business Segment (Secondary Segment)

The company is in the business of manufacture of Masterbatches and Engineering Plastic Compounds. Since the operations of Engineering Plastic Compounds contributes less than 10% of the company''s total revenue/profits, the operations of Masterbatches is treated as one reportable business segment.

Note No. 6 : RELATED PARTY DISCLOSURES

A. Names of the Related parties "Holding Significant Influence" and "Key Management Personnel" under the Accounting Standard (AS-18) are as under :-

i. Parties holding significant influence

M/s.Trustline Capital Finance Pvt Ltd., Pluto Trade links Ltd., GKS Logistics Pvt Ltd. and G.K.S. Holdings Ltd. ii. Key Management Personnel

ShriS.S.Poddar Managing Director

Shri R. K.Sureka Director & CEO

iii Relatives of the Key Management Personnel

Smt. Kusum Poddar - Ex-Director of the company and wife of Managing Director.

Smt. Sushma Sureka - Wife of Director & CEO

Smt. Mahima P. Agarwal - Director of the Company and daughter of Managing Director.

Note No. 7 : Previous year figures have been regrouped/rearranged wherever considered necessary to conform to this year in view of the schedule VI and paises have been rounded off to the nearest rupee.


Mar 31, 2012

Corporate Information

Poddar Pigments Limited (the Company) is a public limited company domiciled in India, incorporated under the provisions of Companies Act, 1956. Its shares are listed on Bombay Stock Exchange and Jaipur Stock Exchange Limited. The Company is a manufacturer of Color & Additive Master batches for dope dyeing of man- made fibers, various plastic applications.

1.1. During the current year and in the previous year, there have been no movements in the number of equity share outstanding.

1.2. The Company has only one class of equity shares, having a par value of Rs. 10 per share. Each shareholder is eligible for one vote per share held. In the event of liquidation, the equity shareholders are eligible to receive the remaining assets of the company, after distribution of all preferential amount, in proportion to their shareholding.

Foot Note:

2.1 - The Company has declared dividend on the equity shares @ Rs. 21- per share (Previous year Rs. 2.25 Per share), totalling to Rs. 2,46,62,415 (Previous year Rs. 2,78,37,576) including dividend tax. The dividend so declared is subject to approval of the members of the company at the Annual General Meeting.

Nature of security

3.1. Term loan is secured by (i) first charge basis on assets created out of Term Loan (ii) Hypothecation on Second pari-passu charge basis on entire current assets (present and future) (iii) Extension on bank's share of second pari passu charge on fixed assets of the company (excluding assets created by Term Loan which are primary security for term loan and Chennai property).

Terms of repayment

3.2. Foreign currency term loan equivalent to Rs. 6,98,83,700 is repayable on quarterly installment in USD equivalent of Rs. 1 Crore commencing from July, 2011 and ending in April, 2013.

3.3. Deferred Sales Tax is Repayable in 24 equal monthly installment commencing from April 2012.

4.1. Nature of security

Working capital loan is secured by (i) Hypothecation on first pari passu charge on entire current assets present and future including stocks, Receivables (ii) Second pari passu charge on fixed assets present and future.

Terms of repayment

4.2. Working capital loans from bank are repayable on demand.

4.3. Buyers credit in foreign currency are repayable, as per the terms of agreement, within 12 months.

Foot note: 5.1 There are no outstanding dues to be deposited into the investor Education and Protection Fund as the stipulated period is not over.

Note No. 6 : CONTINGENT LIABILITIES TO THE EXTENT NOT PROVIDED FOR IN RESPECT OF:

As at 31st As at 31st March, 2012 March, 2011 (Rs.) (Rs.)

(A) Claim against company acknowledged as Debts:-

(i) Income Tax matter in appeals. 780,059 153,830

(ii) Sales Tax demands not admitted by the company and for which appeals have been filed with appropriate authorities. 926,880 828,817

(iii) Service Tax demand not admitted by the company and for which appeals have been filed with appropriate authorities. - 24,490

(iv) Showcause notices in respect of Excise duty matters pending with adjudicating authority for necessary order. - 3,017,941

(B) Guarantees:-

(i) Bank Guarantees 190,099 NIL

(ii) Letter of Credit against purchase of raw material 84,760,391 57,021,853

(iii) Bonds Executed with Customs & Excise Authorities 3,000,000 3,000,000

(C) Other Contingent Liabilities:-

(i) Bill discounting with banks (since realised Rs. 4084090/- (2010-11 Rs. 11056103)) 4,084,090 32,719,896

Note No. 7 : Details of Suppliers covered under the Micro, Small and Medium Enterprises Development Act, 2006, and which have furnished the information regarding filing of necessary memorandum with appointed authority is as under:-

(a) Amount outstanding at the year end - Rs. NIL (Previous Year Rs. 4571710/-).

(b) Interest payable on delayed payments - Rs. NIL (Previous Year Rs. NIL ).

Note No. 8 : The Insurance claim filed with Insurance Company/IOC on account of damages/loss Caused due to fire in IOC Depot adjacent to our Sitapura Factory at Jaipur in Oct, 2009 is under process of settlement, part of which was already settled and received during the year.

Note No. 9 : Income tax Provision has been made taking into account the weighted deduction in respect of capital expenditure incurred for in- house R&D division to which the company is entitled under sec 35 (2AB) of the income tax act 1961, though formal approval in form 3CM is pending (in- house R&D facility has been approved) which is expected shortly. The amount of tax benefit so considered is Rs. 65 lakhs.

Note No. 10 : SEGMENT REPORTING

B. Business Segment (Secondary Segment)

The company is in the business of manufacture of Masterbatches and Engineering Plastic Compounds. Since the operations of Engineering Plastic Compounds contributes less than 10% of the company's total revenue/profits, the operations of Masterbatches is treated as one reportable business segment.

Note No. 11 : RELATED PARTY DISCLOSURES

A. Names of the Related parties "Holding Significant Influence" and "Key Management Personnel" under the Accounting Standard (AS-18) are as under:-

i. Parties holding significant influence

M/s.Trustline Capital Finance Ltd., Pluto Trade links Ltd. and G.K.S. Holdings Ltd.

ii. Key Management Personnel

Shri S.S. Poddar Managing Director

Shri R.K.Sureka Director & CEO

iii Relatives of the Key Management Personnel Smt. Kusum Poddar - Ex-Director of the company and wife of Managing Director.

Smt. Sushma Sureka - Wife of Director & CEO

Smt. Mahima P. Agarwal - Director of the Company and daughter of Managing Director.

Note No. 12 : Previous year figures have been regrouped/rearranged wherever considered necessary to conform to this year in view of the Revised schedule VI and paises have been rounded off to the nearest rupee.


Mar 31, 2011

1. (a) Contingent liabilities not provided for in respect of

2010-11 2009-10 (Rs.) (Rs.)

(i) Letter of Credit against purchase of raw material 57021853 30013226

(ii) Bonds Executed with Customs & Excise Authorities 3000000 43000000

(iii) Showcause notices in respect of Excise duty matters pending with adjudicating authority for necessary order. 3017941 2309941

(iv) Income Tax matter in appeals 153830 1280404

(v) Sales Tax & Entry tax demands not admitted by the company and for which appeals have been filed with appropriate authorities. 828817 66496

(vi) Bill discounting with banks [since realised Rs. 11056103/- (2009-10 Rs. Nil)] 32719896 NIL

(vii) Service Tax demand not admitted by the company and for which appeals have been filed with appropriate authorities. 24490 24490

(b) Estimated amount of contracts ( Net of advances) remaining to be executed on Capital Account and not provided for Rs. 3153062/- (2009-10 Rs. 42416172/-)

2. (a) Trading, Manufacturing & Other expenses includes Rs 12678558/- (2009-10 Rs. 9965648/-) in respect of Research & Development activities undertaken during the year.

(b) Miscellaneous Income includes Rs. 18040786/- (2009-10 Rs. 8374170/-) credited (Net) on account of Foreign Exchange fluctuation.

(c) Share Capital includes Rs. 2500000/- being amount on account of allotment of shares (for consideration other than Cash) upon amalgamation.

(d) Capital expenditure of Rs. 2782042/- (2009-10 Rs. 5700623/-) has been made during the year on Research & Development.

3. The Insurance claim filed with Insurance Company / IOC on account of damages / loss Caused due to fire in IOC Depot adjacent to our Sitapura Factory at Jaipur in Oct., 2009 is under process of settlement.

4. Provision for deferred tax liability (net) has increased by Rs. 3442702/-(2009-10 reduced by Rs. 3888718/-) during the year and is based on Accounting Standard (AS) 22 "Accounting for Taxes on Income" issued by The Institute of Chartered Accountants of India, in respect of timing differences between book profit and taxable profit.

5. The Company Dalmia Cement (Bharat) Ltd. had a scheme of de-merger whereby its assets were transferred to new companies namely Dalmia Bharat Sugar & industries limited and Dalmia Bharat Enterprises Ltd. Accordingly, shares of these companies were received in lieu of earlier holding of shares of Dalmia Cement (Bharat) Ltd.

6. Sundry Creditors include acceptances of Rs. 119961007 /- (2009-10 Rs. 96335988/-).

7. Details of Suppliers covered under the Micro, Small and Medium Enterprises Development Act, 2006, and which have furnished the information regarding filing of necessary memorandum with appointed authority is as under: -

a) Amount outstanding at the year end - Rs. 4571710/- (2009-10 Rs.214247/-)

b) Interest payable on delayed payments-Rs. NIL (2009-10 Rs. NIL)

11. Segment Reporting

A. Geographical Segment (Primary Segment)

(III) Capital Employed

Assets used in the Company's business are not capable of being specifically identified with any of the segments and it is not practicable to provide segmental disclosures in relation to total assets and liabilities with any reasonable degree of accuracy.

B. Business Segment (Secondary Segment)

The company is in the business of manufacture of Masterbatches and Engineering Plastic Compounds. Since the operations of Engineering Plastic Compounds contributes less than 10 % of the company's total revenue/profits , the operations of Masterbatches is treated as one reportable business segment.

8. Related Party Disclosures :-

A. Names of the Related parties "Holding Significant Influence" and "Key Management Personnel" under the Accounting Standard (AS-18) are as under: -

i. Parties holding significant influence

M/s. Trustline Capital Finance Ltd.,

Pluto Trade links Ltd. and G.K.S. Holdings Ltd.

ii. Key Management Personnel

Shri S.S. Poddar - Managing Director

Shri R.K.Sureka - Director & CEO

iii. Relatives of the Key Management Personnel

Smt. Kusum Poddar - Director of the company and wife of Managing Director.

Smt.SushmaSureka - Wife of Director & CEO

B. The following transactions were carried out with the related parties during the year :-

(ii) Key Management Personnel

There is no transaction other than managerial remuneration paid as per terms of appointment duly approved by the shareholders. Following are the details of such managerial remuneration:

9. Employee Benefits

The Company has calculated the various benefits provided to employees as under:-

A) Defined Contribution Plans

Provident Fund

B) State Plans

a) Employee State Insurance

b) Employee's Pension Scheme 1995

C) Defined Benefit Plans

a) Gratuity

b) Leave Encashment

10. Pursuant to Notification dated March 31,2009 issued by Ministry of Corporate Affairs, the company has exercised the option available under the newly inserted Paragraph 46 to the Accounting standard AS-11 "The effect of changes in Foreign Exchange Rates" to add or deduct the Foreign Exchange fluctuation to capital cost of the Assets. Accordingly, Rs. 247140/- has been capitalized for foreign exchange loss during the year (previous year Rs. 3292637/- decapitalized being forex gain) in the cost of Capital Assets.

11. Additional information pursuant to Part II of Schedule VI to The Companies Act, 1956.

12. Previous year figures have been regrouped/rearranged wherever considered necessary and paises have been rounded off to the nearest rupee.


Mar 31, 2010

2009-10 2008-09

1.(a) Contingent liabilities not provided for in respect of (Rs) (Rs)

(i Letter of Credit against purchase of raw material 3 00 13 226 3 71 70 526

(ii) Bonds.Executed with Customs & Excise Authorities 4 30 00 000 3 30 00 000

(iii) Showcause Notice in respect of Excise duty 23 09 941 26 04 859 matters pending with adjudicating authority for necessary order.

(iv) Income Tax matter in appeals 12 80 404 7 97 106

(v) Sales Tax demands not admitted by the company 66 496 4 39 487 and for which appeals have been filed with appropriate authorities.

(vi) Bill discounting with banks

(since realised Rs. NIL [2008-09 Rs.9059106/-]) NIL 90 59 106

(vii) Service Tax demand not admitted by the company and 24 490 24 490 for which appeals have been filed with appropriate authorities.

(b) Estimated amount of contracts (Net of advances) remaining to be executed on Capital Account and not provided for Rs.42416172/- (2008-09 Rs.4 74 000/-)

2. (a) Trading, Manufacturing & Other expenses includes Rs. 99 65 648/- (2008-09 Rs. 1 01 67 599/-) in respect of Research & Development activities undertaken during the year,.

(b) Miscellaneous Expenses includes:

i) Rs. NIL (2008-09 Rs. 9 20 278/-) towards bad debts written off.

ii) Rs. NIL (2008-09 Rs. 39 56175/-) debited (Net) towards Foreign Exchange fluctuation.

(c) Miscellaneous Income includes Rs. 83 74 170/- (2008-09 Rs. NIL) credited (Net) on account of Foreign Exchange fluctuation.

(d) Share Capital includes Rs. 25 00 000/- being amount on account of allotment of shares (for consideration other than Cash) upon amalgamation.

(e) Capital expenditure of Rs. 57 00 623/-(2008-09 Rs.21 53159/-) on Research & Development has been made during the year.

3. During the year, the Company has bought back 15 90 000 equity shares of Rs. 10 each at an average price of Rs. 35.71 per share from the open market through Stock Exchange operations and Buy back was completed on 9th February, 2010.The Company has incurred Rs. 13.67 lacs during the year in respect of the said Buy Back of Shares. Accordingly:

a) The aggregate face value of these shares of Rs. 159 Lacs (@ Rs. 10/- per share) has been reduced from the Paid up Equity Share Capital of the Company.

b) The balance price of Rs. 25.71 per share paid on these shares aggregating of Rs. 408.87 lacs has been adjusted from the General Reserve Account.

c) Rs. 159 lakhs has been transferred to Capital Redemption Reserve Account from General Reserve, as required under the provision of law.

4. There was a fire in IOC depot adjacent to our Sitapura factory at Jaipur in Oct, 2009 which caused damage to building and certain quantity of WIP / Finished Goods lying at shop floor in the factory. Necessary claims has been filed by the Company with the Insurance Company / IOC / RIICO which is under process of settlement. Amounts of various expenses & Raw material consumption excludes the amounts which has been .claimed from the Insurance Company / IOC/ RHCO for the loss suffered by the company as a result of the said fire.

5. Provision for deferred tax liability (net) has reduced by Rs. 38 88 718/- (2008-09 reduced by Rs. 14 49 943/-) during the year and is based on Accounting Standard (AS) 22 "Accounting for Taxes on Income" issued by The Institute of Chartered Accountants of India, in respect of timing differences between book profit and taxable profit.

6. Sundry Creditors include acceptances of Rs. 9 63 35 9887-(2008-09 Rs. 7 54 55176/-)

7. Details of Suppliers covered under the Micro, Small and Medium Enterprises Development Act, 2006, and which have furnished the information regarding filing of necessary memorandum with appointed authority is as under: -

a) Amount outstanding at the year end - Rs. 214 247/- (2008-09 Rs. 2115 893/-)

b) Interest payable oh delayed payments-Rs. NIL (2008-09 Rs. NIL)

8. Segment Reporting

(III) AsTetelSheCompanys business are not capable of being specifically identified with any of the segments Assets segmental disclosures inflation to total assets and liabiities with any any reasonable degree of accuracy.

B Business Segment (Secondary Segment)

The company is in the business of manufacture of Masterbatches and Engineering Plastic Compounds Since he operations of Masterbatches is treated as one reportable business segment.

9. Related Party Discolures:

(A) Names of the Ralated Parties "Holding Significant Influence" and "Key Management Personnel" under the Accounting Standard (ASt1 8) are as under:-

i. Parties holding significant influence

M/s. Trustline Capital Finance Ltd.,Pluto Trade links Ltd. and G.K.S. Holdings Ltd.

ii. Key Management Personnel

Shri S.S.Poddar - Managing Director

Shri R.K.Sureka - Directors CEO

lll. Relatives ot the Key Management Personnel

Smt. Kusum Pocldar - Director of the company and wife of Managing Director.

Smt. Sushma Sureka - Wife of Director & CEO

10. Pursuant to Notification dated March 31,2009 issued by Ministry of Corporate Affairs, the company has exercised the option available under the newly inserted Paragraph 46 to the Accounting standard AS-11 "The effect of changes in Foreign Exchange Rates" to add or deduct the Foreign Exchange fluctuation to capital cost of the Assets. Accordingly the net foreign exchange fluctuation amounting to Rs. 32.93 lacs has been decapitalised from cost of Capital Assets.(previous year Rs. 97.57 lacs had been added to cost of Capital Assets.)

11. Additional inlormation pursuant to Partll of Schedule Vl to The Companies Act, 1956.

12. Previous year figures have been regrouped/rearranged whersver considered necessary and paises have been rounded off to the nearest rupee.

 
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