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Notes to Accounts of Solar Industries India Ltd.

Mar 31, 2016

Note - 1.

As Per Accounting Standard (AS) 17 on "Segment Reporting "we are having only one segment hence segment reporting not applicable.

2.(1) The Board of Directors of the Company in previous years decided to write off interest income from companies related to
Bhatgaon Coal Blocks. The company has written off interest income of Rs. 30.00 Crores in earlier years. The Board of Directors
decided not to charge the interest on outstanding loans.

2. (2) During the year company has purchased shares of its subsidiary M/s. Emul Tek Pvt Ltd at value of Rs. 0.80 Crores, Blastec
(India) Pvt Limited of Rs. 0.50 Crores. and M/s. Solar Defence Ltd at value of Rs. 0.05 Crores.

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

2 (4) Significant accounting policies and practice adopted by the company are disclosed in the statement annexed to these
financial statement as Annexture-1

2 (5) Expenditure related to Corporate Social Responsibility as per Section 135 of the Companies Act, 2013 read with Schedule
VII thereof : of Rs. 2.23 Crores

2 (8) During the year Purchases of Stock in trade shown on consumption basis.

2(9) As on 31.03.16 company has given Financial Guarantee of $3.38 Crores for its wholly owned overseas subsidiary.

IV Notes

1 Every Employee who has completed Minimum five years of service is entitled to Gratuity at 15 days salary for each completed
year of services. The scheme is funded with insurance companies in the form of Qualified insurance Policies.

2 Provident fund for certain eligible employees is managed by the Providend fund authorities.The contribuition by the employer
and employee together with the interest accumulated thereon are payable to employees at the time of seperation from the company
or retirement, whichever is earlier. The benefits vest immediately on rendering of the services by the employee.

3 The minimum interest rate payable by the LIC to the beneficiaries every year is being notified by the LIC.


Mar 31, 2014

1 (1) RELATED PARTY DISCLOSURES :-

As Per Accounting Standard 18, the disclosures of transactions with the related parties are given below :- (i) List of related parties where control exists & related parties with whom transactions have taken place & relationships:-

SR NAME OF RELATED PARTY NO.

SUBSIDIARIES :-

1 Economic Explosives Ltd

2 Solar Mines & Minerals Ltd

3 Solar Mining Resources Ltd

4 Navbharat Coalfields Ltd

OVERSEAS SUBSIDIARIES:-

1 Solar Overseas Mauritius Ltd

2 Solar Explochem Mauritius Ltd

3 Solar Overseas Netherlands Cooperative U.A_

4 Solar Overseas Netherlands B.V.

5 ILCI Patlayici Maddeler Sanayi Ve Ticaret Anonim Sirketi

6 PATSAN Pattlayici Maddeler Sanayi Ve Ticaret

7 Solar Overseas Singapore Pte Ltd

8 Solar Nigachem Nigeria Ltd

9 Nigachem Nigeria Ltd

10 Solar Explochem Zambia Ltd

11 Solar Mining Services Australia Pty Ltd

12 Solar Nitrochemicals Ltd

13 Solar Industries Mocambique LDA

14 Solar Explochem (Ghana) Ltd

15 PT. Solar Mining Services

16 Australian Explosive Technologies Group Pty Ltd

ASSOCIATES:-

1 Solar Synthetics Private Limited

2 Mahakal Infrastructures Pvt Ltd

3 Mahakal Project Pvt Ltd

4 Nagpur Infrastructure Pvt Ltd

5 Solar Bhatgaon Extension Mines Pvt Ltd

6 SMS Bhatgaon Mines Extension Pvt Ltd

7 Bhatgaon Extension Mines Pvt Ltd_

8 Bhatgaon Mines Pvt Ltd

9 Solar Initiating Systems Ltd

10 Madanpur North Coalfelds Ltd

11 Solar Processors Ltd_

KEY MANAGEMENT PERSONNEL:-

1 Shri S.N. Nuwal

2 Shri K.C. Nuwal

3 Shri Manish Nuwal

4 Shri K.S. Talesra

5 Shri R.D. Vakil

2) As Per Accounting Standard ( AS ) 17 on "Segment Reporting", segment information has been provided under the Notes to Consolidated FINANCIAL Statements.

3) Research and Developement expenses incurred during the year :-

a. Rs. 270.75/- Lakhs (Previous year Rs. 274.63 Lakhs) in the nature of revenue expenditure.

b. Rs. 711.73/- Lakhs (Previous year Rs. 950.49 Lakhs) in the nature of capital expenditure have been included under the appropriate account heads.

4) cONTINGENT LIABILITIES & cOMMITMENTS :-

Particular 2014 2013

1) In respect of counter guarantees given by bank 5,815.12 7,020.38

2) In respect of excise matters in dispute / under appeal 623.94 530.78

3) In respect of SALES tax deferement 947.01 947.01

4) In respect of income tax matters in dispute/ under appeal 149.51 135.26

5) In respect of SALES tax matters in dispute/ under appeal 353.96 100.07

5 (1) Company has given Long term Loan to M/s. Bhatgaon extension Mines Pvt. Ltd Rs. 3877.38 Lakhs and Bhatgaon Mines Pvt Ltd Rs. 4724.38 Lakhs. Management has taken decision not to charge interest for the current FINANCIAL year.

6 (2) During the year Company has made provision for doubtful advances in respect of interest provided in earlier year of Rs. 1000.14 Lakhs of Bhatgaon extension Mines Pvt Ltd and Bhatgaon Mines Pvt.Ltd. the total provision made till date is Rs. 2000.28 Lakhs.

7 (1) During the year Company has acquired 24,500 shares of M/s. Solar Mines & Minerals Ltd at value of Rs. 2.45 Lakhs.

8 (2) During the year Company has executed a contract with ilci Patlayici Maddeler Sanayi Ve ticaret Anonim Sirketi, turkey of Rs. 823.16 Lakhs for supply of Continuous emulsion Plant for manufacturing of package explosives.

9) FINANCIAL & Derivative Instruments

a) Derivative contracts entered into by the Company as on 31st March,2014

10) the Ministry of Corporate Affairs, Government of india, vide General Circular No.2 and 3 dated 8th February 2011 and 21st February 2011 respectively has granted exemption from COMPLIANCE with section 212 of the Companies Act, 1956, subject to fulfillment of conditions stipulated in the circulars and hence is entitled to the exepmtion. Necessary information relating to the SUBSIDIARIES has been included in the Consolidated FINANCIAL Statement.


Mar 31, 2013

Note - 1

As Per Accounting Standard (AS) 17 on "Segment Reporting", segment information has been provided under the Notes to Consolidated Financial Statements.

Note - 2 RESEARCH AND DEVELOPMENT EXPENSES INCURRED DURING THE YEAR

a. Rs.274.63 lacs (Previous year Rs.153.91 lacs) in the nature of revenue expenditure.

b. Rs.950.49 lacs (Previous year Rs.567.97 lacs) in the nature of capital expenditure have been included under the appropriate account heads.

Note - 3 CONTINGENT LIABILITIES & COMMITMENTS

(Amount in Rs. lacs)

Particulars F.Y. F.Y. 2012-13 2011-12

1) In respect of counter guarantees given by bank 7020.38 3077.62

2) In respect of excise matters in dispute / under appeal 530.78 488.52

3) In respect of sales tax deferment 947.01 1,323.56

4) In respect of income tax matters in dispute/ under appeal 135.26 18.24

5) In respect of sales tax matters in dispute/ under appeal 100.07 136.50

Note - 4

1) Company has given Long Term Loan to M/s. Bhatgaon Extension Mines Pvt. Ltd. Rs.3876.47 lacs and Bhatgaon Mines Pvt. Ltd. Rs.4713.60 lacs. Management has taken decision not to charge interest for the current financial year.

2) Company has made provision for doubtful advances in respect of interest provided in earlier year of Rs.1000.14 lacs of Bhatgaon Extension Mines Pvt. Ltd. and Bhatgaon Mines Pvt. Ltd.

Note - 5 FINANCIAL & DERIVATIVE INSTRUMENTS

a) Derivative contracts entered into by the Company as on 31st March, 2013

I) For hedging Currency and interest rate related risks:

Nominal amounts of derivative contracts entered into by the Company and outstanding as on 31st March, 2013 amounting to Rs.3648.29 Lacs (Previous year Rs.9217 lacs) Category wise breakup is given below:-

Note - 6

The Ministry of Corporate Affairs, Government of India, vide General Circular No.2 and 3 dated 8th February 2011 and 21st February 2011 respectively has granted exemption from compliance with section 212 of the Companies Act, 1956, subject to fulfilment of conditions stipulated in the circulars and hence is entitled to the exemption. Necessary information relating to the subsidiaries has been included in the Consolidated Financial Statement.


Mar 31, 2012

# Working Capital loans are secured by hypothecation of entire stocks, raw material, stock in process, finished goods, consumables, stores & spares, book debts, outstanding money receivables, entire current asset of company- current & future, paripassu second charges on fixed assets, claims & bills, receivables.

* (i) Fixed Deposit with bank include deposit of Rs 235.52 lacs maturity more than 12 months & held as security against borrowing of less than 12 months period.

(ii) FDR of Rs 14870.02 lacs held as margin money or security against the borrowing & other commitments of

Note 1 RELATED PARTY DISCLOSURES

As Per Accounting Standard 18 , the disclosures of transactions with the related parties are given below

(I) List of related parties where control exists & related parties with whom transactions have taken place & relationships :

SR NO. NAME OF RELATED PARTY

SUBSIDIARIES :

1. Economic Explosives Ltd

2. Solar Mines & Minerals Ltd

3 Solar Mining Resources Ltd

4 Navbharat Coalfields Ltd

OVERSEAS SUBSIDIARIES:

1. Solar Overseas Mauritius Ltd

2. Solar Explochem Mauritius Ltd

3. Solar Netherlands Corporate U.A

4. Solar Netherlands Overseas B.V.

5. ILCI Patlayici Maddeler Sanayi Ve Ticaret Anonim Sirketi

6. PATSAN Pattlayici Maddeler Sanayi Ve Ticaret

7. Solar Overseas Singapore Pte Ltd

8. Solar Nigachem Nigeria Ltd

9. Nigachem Nigeria Ltd

10. Solar Explochem Zambia Ltd

11. Solar Mining Services Australia Pty Ltd

12. Solar Nitrochemicals Ltd

13. PT. Solar Mining Resources

14. Solar Agro Florestal LDA

15. Solar Induatries Mocambique LDA

16. Solar Recursos Minerals LDA

17. Solar Explochem (Ghana) Ltd

ASSOCIATES:

1 Solar Synthetic Pvt Ltd

2 Mahakal Infrastructures Pvt Ltd

3 Mahakal Project Pvt Ltd

4 Nagpur Infrastructure Pvt Ltd

5 Solar Bhatgaon Extension Mines Pvt Ltd

6 SMS Bhatgaon Mines Extension Pvt Ltd

7 Bhatgaon Extension Mines Pvt Ltd

8 Bhatgaon Mines Pvt Ltd

9 Solar Initiating Systems Ltd

10 Madanpur North Coalfields Ltd

11 Solar Processors Ltd

12 Australian Explosive Technologies Group Pty Ltd

13 Navbharat Fuse

KEY MANAGEMENT PERSONNEL:

1. Shri S.N. Nuwal

2. Shri K.C. Nuwal

3. Shri Manish Nuwal

4. Shri K.S. Talesra

5. Shri R.D. Vakil

Note 2

As Per Accounting Standard (AS) 17 on " Segment Reporting ", segment information has been provided under the Notes to Consolidated Financial Statements.

Note 3

Research and Development expenses incurred during the year :

a. Rs. 153.91 lacs (Previous year Rs. 81.35 lacs) in the nature of revenue expenditure;

b. Rs. 567.97 lacs (Previous year Rs. 37.53 lacs) in the nature of capital expenditure have been included under the appropriate account heads.

Note 4 CONTINGENT LIABILITIES & COMMITMENTS

(Rs. in Lacs)

Particulars F.Y. 11-12 F.Y.10-11

1) IN RESPECT OF COUNTER GUARANTEES GIVEN BY BANK 3,077.62 3,038.79

2) IN RESPECT OF EXCISE MATTERS IN DISPUTE / UNDER APPEAL 488.52 261.71

3) IN RESPECT OF SALES TAX DEFEREMENT 1,323.56 2,076.18 PAYABLE AS PER NPV BASIS - 536.05

4) IN RESPECT OF INCOME TAX MATTERS IN DISPUTE/ UNDER APPEAL 18.24 18.24

5) IN RESPECT OS SALES TAX MATTERS IN DISPUTE/ UNDER APPEAL 136.50 85.87

6) DUTY IMPOSED BY CCI FOR VOILATING SEC 3 OF COMPETION ACT ** 1,134.00 -

** The Competition Commission Of India (CCI) has upheld the contention of Coal India Ltd (CIL) against explosive manufactures. CIL had contended by the manufactures for collective boycott of electronic reverse auction held by CIL in January 2010 covered as violation under sec 3 of Competiton Act.

CCI has fined the ten explosives manufacturers 3% of the average of their annual turnover for the last three financial years , for violating sec 3 of the Competition Act.

The unanimous order of the CCI held that there was a concerted action among the explosives manufacturers not to participate in the CIL reverse auction , which resulted in a collective boycott of the auction & manipulation of the bidding process , in violation of sec 3(3)(b) of the Competition Act.

Note 5 Financial & Derivales Instruments

a) Derivative contracts entered into by the Company and outstanding as on 31st March,2012.

i.) For hedging Currency and Interest Rate Related Risks:

Nominal amounts of derivative contracts entered into by the Company and outstanding as on 31st March amount to Rs. 9217 Lacs

b) Foreign Currency exposures that are not hedged by derivative instruments as on 31st March, 2012 amount to Rs NIL (Previous Year Rs. NIL).

Note 6

The Ministry of Corporate Affiaris , Government of India , vide General Circular No. 2 and 3 dated 8th February 2011 and 21 st February 2011 respectively has granted a general exemption from complaiance with section 212 of the Companies Act , 1956 , subject to fulfillent of conditions stipulated in the circular. The Company has satisfied the conditions stipulated in the circular and hence is entitled to the exemptiion. Necessary informationrelating to the subsidiaries has been included in the Consolidated Financial Statement.


Mar 31, 2011

1. Contingent Liability

Amount in Rs. Lacs

FY 2010-11 FY 2009-10

01 In respect of counter guarantees given to Bank Rs. 3,038.79 3,701.43

02 In respect of Excise matters in dispute / under Appeal Rs. 261.71 140.74

03 In respect of Sales Tax Deferment Rs. 2,076.18 3,233.17 Payable as per NPV basis - 820.80 Lacs

04 In respect of Income Tax matters in dispute / under Appeal Rs. 18.24

05 In respect of Sales Tax matters in dispute / under Appeal Rs. 85.87

5. Related party disclosures required as per AS-18 on ` Related Parties disclosures' issued by the Institute of Chartered Accountants of India, are below for the year ended on 31st March, 2011.

1. Holding Company : NIL

2. Subsidiaries : a) Economic Explosives Limited

b) Solar Mines & Minerals Ltd.

c) Solar Mining Resources Ltd.

d) Navbharat Coalfields Ltd.

3. Fellow Subsidiaries : NIL

4. Overseas Subsidiaries : a) Solar Overseas Mauritius Limited

b) Solar Agro Florestal LDA*

c) Solar Industries Mocambique LDA*

d) Solar Recursos Minerals LDA*

5. Fellow Overseas Subsidiaries a) Solar Explochem Mauritius Ltd.*

b) Solar Netherlands Corporatie U.A.

c) Solar Netherlands Overseas B.V.

d) Ilci Patlayici Maddeler Sanayi VeTicaret Anonim Sirketi

e) PATSAN Pattlayici Maddeler Sanayi Ve Ticaret

f) Solar Overseas Singapore Pte Limited

g) Solar Nigachem Nigeria Limited*

h) Nigachem Nigeria Limited

i) Solar Explochem Zambia Limited

j) Solar Mining Services Australia Pty Ltd.*

k) Solar Nitrochemicals Limited*

l) P T. Solar Mining Resources*

6. Associates a) Solar Synthetics Private Limited

b) Mahakal Infrastructures Private Limited

c) Mahakal Project Private Limited

d) Nagpur Infrastructure Private Limited

e) Solar Bhatgaon Extension Mines Private Limited

f) SMS Bhatgaon Mines Extension Private Limited

g) Bhatgaon Extension Mines Private Limited

h) Bhatgaon Mines Private Limited

i) Sunbeam Explosives Limited

j) Sunrise Explosives Limited

k) Solar Initiating Systems Limited

l) Madanpur North Coal Fields Limited

m) Solar Processors Limited

n) Commercial Sales Corporation

o) Australian Explosive Technologies Group PtyLtd

* Note: The Company has not commenced any business operations, hence financial performance is not available.

6. Key Management Personnel : a) Shri.S.N.Nuwal

b) Shri K.C.Nuwal

c) Shri Manish Nuwal

d) Shri K.S. Talesra

e) Shri R.D.Vakil

7. Employee retirement benefits

Contributions to Provident Fund are deposited with the appropriate authorities and charged to the Profit and Loss Account as incurred. The Company has made provision for gratuity based on 15 days' salary for each completed year of service.

8. In earlier year the Company has supplied explosives to Coal India Ltd from 1st March, 2006 to 30th June, 2006 as per old rate contract rates on confirmation from Coal India Ltd that new rate contract will be issued effective from 1st March, 2006 Coal India Ltd has issued new rate contract w.e.f 29th July, 2006 without covering the period From 1st March, 2006 to 30th June, 2006. The Company has protested and now this is sub Juidice at Hon. Calcutta High Court on the ground that since no rate contract has been issued for 01.03.06 to 30.06.06 so rates of old rate contract shall be applied. During the year Hon. Calcutta High Court has given an order asking Bank Guarantee against such deductions and company has submitted the same which is included in contingent liability. The court has passed an order for release of payment against Bank Guarantee for Cartridge & Accessories Division only and allowed full deduction for Bulk Division pending final decision in the matter by the Hon. Calcutta High Court.

9. During the year company has traded Ammonium Nitrate of Rs. 5101.71 Lacs.

10. Company has made investment during FY 2008-09 in two SPV companies along with SMS Infrastructure Pvt.Ltd. to enter into Joint Venture with CMDC for mining work and separate Joint venture companies is formed in which the stake of CMDC is 51%. The stake of Solar Industries India ltd. in SPV Company is as follows.

Solar Bhatgaon Ext.Mines Pvt.Ltd. 49%

SMS Bhatgaon Mines Extension Pvt.Ltd. 49%

11. During the year the Company has invested $ 70.00 Lacs in its foreign subsidiary Solar Overseas Mauritius Ltd.further Solar Overseas Mauritius Ltd.has invested in Solar Netherlands Corporatie U.A., Solar Netherlands Overseas B.V., Ilci Patlayici Maddeler Sanayi VeTicaret Anonim, PATSAN Pattlayici Maddeler Sanayi Ve Ticaret, Solar Overseas Singapore Pte Limited , Nigachem Nigeria Limited, Solar Explochem Zambia Limited

12. During the year the Company has executed the turnkey project of installation of Bulk Explosive Manufacturing Plant for its associate company Nigachem Nigeria Limited. of Rs. 626.79 Lacs

13. During the year the Company has provided Rs. 546.90 Lacs against Powder Factor deductions for its supplies of explosives to Coal India Ltd.

14. Sundry Creditor includes outstanding balance of M/s Citco Waren Handel Sgesellschaft & Quantum Fertilizers Ltd. Rs. 6787.26 Lacs which includes payment outstanding against Buyers Credit is Rs. 6787.26 Lacs.

15. Some of the customers and suppliers accounts are pending for confirmation/reconciliation and the same have been taken as per the balances appearing in the books. Any differences arising on account of such reconciliations, which are not likely to be material, will be accounted for as and when these reconciliations are completed.

16. Capital work in progress in Fixed Assets

Company has got status of "Mega Project" from Government of Maharashtra. Company has made investment in Fixed Assets. Project work is not completed, hence shown under Capital WIP.

Civil Construction worth Rs. 471.36 Lacs, Plant & Machinery worth Rs. 693.78 Lacs, Electric Installation worth Rs. 49.65 Lacs, and other work in progress Rs. 409.67 Lacs.

17. Excise Duty shown under expenditure represents the aggregate of the difference between Excise Duty on the Opening and Closing Stock of Finished Goods.Excise Duty deducted from Sales represents Excise Duty paid.

18. Sundry Creditors for goods and expenses include dues to Micro Small & Medium Scale Business Entities aggregating to Rs. 95.44 Lacs The names of Micro Small & Medium Scale Business Entities (to the extent of information available with the management- to whom the Company owes a sum exceeding Rs. 1 lac each Basic Chemical Industry, Kalinga Wrappers, Sunrise Technologies,Welset Plast Extrusion Pvt.Ltd.,Sankhala Industries,Bharat Solar Cable,Rudraksha Allied Chemical Pvt.Ltd.,Hindustan Gum & Chemicals Ltd.,Gujrat Polymers,Anupam Colours Pvt.Ltd.,Geeta Packaging Industries, Shree Gajanan Agro Industries,Maxwell Poly Products,Sachin Polypack & Gayatri Packaging Industries. None of the aforesaid outstanding is due for payment as at 31st March, 2011 as per agreed terms.

19. Export Incentive receivable under duty free credit entitlement included under the head Loans & Advances is pending due to disposal for some procedural aspects with Government. Shortfall / excess if any will be taken into accounts as and when it is determined.

20. Manufacturing sales includes input material sales

21. Disclosure as required by Accounting Standard 19 "Leases" issued by the institute of Chartered Accounts of India are given below:

Being the Company is Lessee:

(i) The Company's significant leasing arrangements are in respect of godown / residential / office premises (including furniture and fittings therein, as applicable-. The aggregate lease rental payable is charged to Profit and Loss Account as Rent.

(ii) The Leasing arrangements, which are cancelable at any time on month to month basis and in some cases between 11 months to 5 years, are usually renewable by mutual consent on mutually agreeable terms. Under these arrangements generally refundable interest free deposits have been given.

22. All known liabilities have been taken into consideration.

23. The previous years figures have been regrouped/reclassified where necessary, to conform to the current year's presentation.


Mar 31, 2010

1. Contingent Liability

01 In respect of of counter guarantees given to Bank Rs. 3701.43 Lacs

02 In respect of Excise matters in dispute / under Appeal Rs. 140.74 Lacs

03 In respect of Sales Tax Deferment Rs. 3233.17

Lacs Payable as per NPV basis -1117.17 Lacs



2. Related party disclosures required as per AS-18 on Related Parties disclosures issued by the Institute of Chartered Accountants of India, are below for the year ended on 31.03.2010

1. Holding Company: NIL

2. Subsidiaries: a) Economic Explosives Limited. b) Solar Components Private.Limited

c) Solar Mines & Minerals Ltd

d) Solar Mining Resources Ltd

e) Navbharat Coalfields Ltd.

3. Fellow Subsidiaries NIL

4. Overseas Subsidiaries a) Solar Nitrochemicals Limited *

b) Solar Nigachem Nigeria Limited *

c) PT.Solar Mining Resources *

d) Solar Recursos Minerals LDA *

e) Solar Industrias Mocambique LDA *

f) Solar Agro Florestal LDA *

g) Solar Overseas Mauritius Limited

h) Solar Overseas Netherlands Cooperatie U.A.

5. Associates :

a) Solar Synthetics Private Limited

b) Commercial Sales Corporation

c) Mahakal Infrastructures Private Limited

d) Mahakal Projects Private Limited

e) Nagpur Infrastructure Pvt. Ltd.

f) Solar Bhatgaon Extension Mines Pvt. Ltd.

g) SMS Bhatgaon Mines Extension Pvt. Ltd

h) Bhatgaon Extension Mines Pvt. Ltd.

i) Bhatgaon Mines Pvt. Ltd.

j) Sunbeam Explosives Ltd.

k) Sunrise Explosives Ltd.

I) Solar Initiating Systems Ltd.

m) Madanpur North Coal Fields Ltd.

n) Solar Processors Ltd.

o) Solar Explochem Zambia Limited

p) Solar Mining Services Pty. Limited

q) Solar Overseas Singapore Pte Limited

*Note : The Company has not commenced any business operations, hence financial performance is not available.

6. Key Management Personnel a) Shri.S.N.Nuwal

b) Shri K.C.Nuwal

c) Shri Manish Nuwal

d) Shri K.S. Talesra

e) Shri R.D.Vakil

8. Employee retirement benefits

Contributions to Provident Fund are deposited with the appropriate authorities and charged to the Profit and Loss Account as incurred. The Company has made provision for gratuity based on 15 days salary for each completed year of service.

9. Sales Tax Provision at NPV basis of Rs.353.81 Lacs is included in Sales Tax Expenses.

11. PAYMENT MADE TO AUDITORS :

i) As Audit fees - Rs.16.00 Lacs

ii) Legal matters - Rs. 5.42 Lacs

iii) As VAT Audit Fees - Rs. 1.25 Lacs

10. In earlier year the Company has supplied explosives to Coal India Ltd from 01.03.06 to 30.06.06 as per old rate contract rates on confirmation from Coal India Ltd that new rate contract will be issued effective from 01.03.06 Coal India Ltd has issued new rate contract w.e.f 29.07.06 without covering the period From 01.03.06 to 30.06.06. The Company has protested and now this is sub Juidice at Hon.Calcutta High Court on the ground that since no rate contract has been issued for 01.03.06 to 30.06.06.so rates of old rate contract shall be applied.During the year Hon. Calcutta High Court has given an order asking Bank Guarantee against such deductions and company has submitted the same which is included in contingent liability. The court has passed an order for release of payment against Bank Guarantee for Cartridge & Accessories Division only and allowed full deduction for Bulk Division pending final decision in the matter by the Hon.Calcutta High Court.

11. During the year company has written off bad debts of Rs. 521.09 Lacs.

12. During the year company has traded Ammonium Nitrate of Rs 9544.67 Lacs.

13. Company has made investment during 2008-09 in two SPV companies along with SMS Infrastucture Pvt. Ltd. to enter into Joint Venture with CMDC for mining work and seprate Joint venture companies is formed in which the stake of CMDC is 51 %. The stake of Solar Industries India ltd. in SPV Company is as follows.

Solar Bhatgaon Ext.Mines Pvt.Ltd. 49%

SMS Bhatgaon Mines Extension Pvt.Ltd. 49%

14. Company has raised ECB for itsexpansion project of domestic as well as overseas USD 9 Million (Rs 41,19,22,500/-) from DBS Bank Singapore. The proposed utilization of this fund will be 3 Million USD in overseas JV/WOS. The ECB is approved by RBI under automatic route. Balance 6 Million will be used in Domestic expansion work.

15. Company got rated P1+ for Short term Borrowings/ Commercial Paper. Company has issued Commercial Papers by earmarking existing working capital limits of State Bank of India & Bank of India worth Rs. 25 crore from Allahabad Bank.

16. During the year the Company has invested $ 1500000 in its foreign subsidiary Solar Overseas Mauritius Ltd

17. Solar Overseas Mauritius has invested $ 500000 in Solar Overseas Netherland.

18. During the year the Company has executed the turnkey project of installation of Bulk Explosive Manufacturing Project of Rs. 277.60 Lacs for its associate company Solar Explochem Zambia Ltd.

19. During the year the Company has provided Rs. 746.95 Lacs against Powder Factor deductions for its supplies of explosives to Coal India Ltd.

20. Sundry Creditor includes outstanding balance of M/s Transmmonia AG Rs. 7828.72 Lacs which includes payment outstanding against Buyers Credit is Rs. 5246.31 Lacs.

21. POWER CONSUMPTION

Electricity consumption : 3942211 Units

22. Some of the customers and suppliers accounts are pending for confirmation/reconciliation and the same have been taken as per the balances appearing in the books. Any differences arising on account of such reconciliations, which are not likely to be material, will be accounted for as and when these reconciliations are completed.

23. Capital work in progress in Fixed Assests Company has got status of "Mega Project" from Government of Maharashtra. Company has made investment in Fixed Assets. Project work is not completed, hence shown under Capital WIP.

Civil Construction worth Rs. 522.12 Lacs, Plant & Machinery worth Rs. 823.53, Electric Installation worth Rs. 97.06 Lacs, and other work in progress Rs. 137.98 Lacs. :

24. Excise Duty shown under expenditure represents the aggregate of Excise Duty borne by the Company and the difference between Excise Duty on the Opening and Closing Stock of Finished Goods.

25. Sundry Creditors for goods and expenses include dues to Small Scale Industrial Undertakings aggregating to Rs. 20.47 Lacs The names of Small Scale Industrial Undertakings (to the extent of information available with the management) to whom the Company owes a sum exceeding Rs. 1 Lacs each Basic Chemical Industry, Kalinga Wrappers, Sunrise Technologies. None of the aforesaid outstanding are due for payment as at 31st March, 2010.

26. Export Incentive receivable under duty free credit entitlement included under the head Loans & Advances is pending due to disposal for some procedural aspects with Government. Shortfall / excess if any will be taken into accounts as and when it is determined.

27. Disclosure as required by Accounting Standard 19 "Leases" issued by the institute of Chartered Accounts of India are given below:

Being the Company is Lessee:

(i) The Companys significant leasing arrangements are in respect of godowns / residential / office premises (including furniture and fittings therein, as applicable). The aggregate lease rental payable are charged to Profit an Loss Account as Rent.

(ii) The Leasing arrangements, which are cancelable at any time on month to month basis and in some cases between 11 months to 5 years, are usually renewable by mutual consent on mutually agreeable terms. Under these arrangements generally refundable interest free deposits have been given.

28. All known liabilities have been taken into consideration.

29. The previous years figures have been regrouped/ reclassified where necessary, to conform to the current years presentation.