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Notes to Accounts of Visaka Industries Ltd.

Mar 31, 2015

1 Rights attached to equity shares

The Company has only one class of equity shares having a face value of Rs.10 /- each. Each holder of equity share is entiltled to one vote per share. The company declares and pays dividends in Indian Rupees. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting.

During the year ended, dividend per share recognised as distributions to equity shareholders was Rs.5 /- (Previous Year Rs.2.5).

In the event of liquidation of the company, the equity shareholders will be entitled to receive remaining assets of the company, after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders.

2 Consequent to the enactment of the Companies Act, 2013 , the company has charged depreciation based on the useful life of the assets as prescribed as per Schedule II of the companies Act 2013. Accordingly, where the remaining uselful life of the assets expired as on 1st April, 2014 the carrying amount of those assets has been adjusted against the opening retained earnings by Rs.1286.45 lacs (net of deferred tax of Rs.662.42 lacs).

3 Term loans from banks represent loan taken from HDFC Bank Limited for the fibre cement boards project near Daund Taluk, Pune District in Maharastra. The loan sanctioned is Rs.6870.00 lacs in the year 2012-13, which is repayable in 20 quarterly installments commencing from Jan'14. The current rate of interest is 11% as at the balance sheet date. This loan is secured by first mortgage and charge in favour of the Bank on all the Company's fixed assets both present and future on pari passu basis with other lenders, second charge on the current assets of the Company and personal guarantee of the Vice-chairman Dr G Vivekanand of the Company. During the year 2014-15,the company has repaid an amount of Rs.1374 lacs and Rs.343.50 lacs is repayable each quarter from the financial year 2015-16 to 2018-19 (upto December, 2018).

4 (i) Loans from others include interest free loans of Rs.2333.74 lacs availed (Rs.1523.75 lacs in 2012-13 and Rs.809.99 lacs in 2014- 15) from The Pradeshiya Industrial & Investment Corporation of U.P. Ltd for the cement asbestos unit at Raebareli, U.P which is sanctioned under the Industrial Investment Promotion Scheme, 2003. The loan is secured by first charge on the entire fixed assets of the Company both present and future, by way of first pari-passu charge with all the secured lenders of the Company and personal guarantee of Managing Director. The loan is repayable (each installment drawn) after 10 years from the date of disbursement.

(ii) Loans from others include Rs.102.90 lacs obtained from Life Insurance Corporation of India against key man insurance policy at 9% which matures on 28-03-2018. This loan has no specific terms of repayment.

5 Deferred payment liabilities represent sales tax deferment relating to Cement Asbestos Unit at Patancheru, Medak District. This loan is interest free and repayable at H200.18 lacs in the year 2019-20 and Rs.21.07 lacs in the year 2020-21.

6 Public deposits represent deposits accepted from public carrying interest varying from 11% to 12% . The maturity of these deposits fall on different dates depending on the date of each deposit. There are no deposits matured and remained unpaid as on the balance sheet date.

7 Security deposits include deposits received from stockists (i.e Dealers) Rs.2575.16 Lacs (P.Y Rs.2267.58 lacs), transporters Rs.28.34 lacs (P.Y Rs.26.34 lacs) , sales agents Rs.52.04 lacs (P.Y Rs.50.36 lacs) as collateral at the time of agreement/contract. These have no specific maturity date and are not repayable as long as they continue business with the company. These deposits carry interest at the rate of 9% per annum.

8 Working capital Loans from State Bank of India and State Bank of Hyderabad (under consortium arrangement) are repayable on demand which are secured on pari-passu basis by hypothecation of the Company's entire movable assets including stocks, all raw materials, work-in-process, stores & spares, finished goods and book debts, present and future, and personal guarantee of the Vice-chairman Dr G.Vivekanand of the Company.

9 Unsecured short term loans from banks include buyers credit availed from a) Kotak Mahindra Bank Limited of Rs.2442.50 lacs (P.Y Rs.670.88lacs), b) HDFC Bank Limited of Rs.2066.16 Lacs (P.Y Rs.2466.86 lacs) , c) Yes Bank Limited of Rs.654.61 lacs (P.Y Rs.903.17 lacs) d)RBL Bank Ltd of Rs.1706.57 lacs (P.Y Rs. Nil) and e) short term loan of Rs.4000 lacs (P.YRs.5000 lacs) from ICICI Bank ltd. These loans are backed by the personal guarantee of Vice-Chairman Dr G Vivekanand of the Company. All these buyers credit loans are repayable within six months from the date of availment. The short term loan taken from ICICI Bank Limited is repayable in June'15.

10 The Company has taken Inter Corporate Deposit of Rs.400.00 Lacs from Vinutha Infrastructure Pvt Ltd.

11 Expense payable reperesents amount payable to various parties like transporters, advertising, security and other contractors. These also include provisions for current salaries, wages and other employee benefits.

12 Statutory liabilites include liabilites accounted towards sales tax,value added tax, service tax,excise duty and tax deducted at source.

13 Consequent to the enactment of the Companies Act, 2013, the company has charged depreciation based on the useful life of the assets as prescribed as per Schedule II of the companies Act 2013. Accordingly, where the remaining uselful life of the assets expired as on 1st April, 2014 the carrying amount of those assets has been adjusted.

14 The Company has provided depreciation as per Schedule II of the Companies Act, 2013. Had the Company followed Schedule XIV of the companies Act 1956, the depreciation would have been lower by Rs.1821.74 lacs.

15 During the year, the Company has transferred unclaimed dividend of Rs.6.90 Lacs pertaining to the financial year 2006-07 to the Investor Education and Protection Fund on expiry of 7 years.

16 The Company has given an inter corporate deposit to Yeshwant Realtors Private Limited for its short term working capital requirements.

17 Interest income represents Interest on electricity deposits, bank deposits and on overdue bills from the customers.

18 During the year the company has contributed an amount of Rs.97 Lacs to Visaka Charitable trust towards Corporate Social Responsibility (CSR)activities in Compliance to the Provisions of Sec 135 of the Companies Act, 2013.

19 During the year the company has contributed an amount of Rs.200.00 Lacs to Indian National Congress, a political party registered with Election Commission of India.

20 During the year, the Company has set up a Solar Photovoltaic (SPV) Power Plant of 2.5 MW at Miryalguda, Nalgonda District in Telangana. The unit has started generating power from 26th May 2014. The Power generated is used for captive use of cement fibre sheet plant at Miryalaguda and Rs.158.21 Lacs being the value of power units generated during the period upto 31st March 2015 is reduced from the power cost.

21 Related Party Disclosures

i) Key management personnel:

Mrs. G.Saroja Vivekanand, Managing Director

Mr. M.P.Venkateswara Rao, Whole time Director (Upto 31st July, 2014)

Mr.G.Vamsi Krishna, Whole Time Director (From 1st June, 2014)

Mr.V.Vallinath, Whole Time Director (From 9th September,2014) & Chief Financial Officer

Mr.I. Srinivas, Company Secretary & Assistant Vice-President (Corporate Affairs)

ii) Non-whole-time Directors

Mr. Bhagirat B. Merchant

Dr. G.Vivekanand

Mr. Nagam Krishna Rao

Mr. Gusti Noria

Mr. V. Pattabhi

Mr. P. Abraham

Mr. P. Srikar Reddy (From 6th September, 2014)

iii) Relatives of key management personnel:

Dr. G.Vivekanand (Spouse of Mrs. Saroja Vivekanand)

Mr. G.Vamsi Krishna,Son of Mrs. Saroja Vivekanand (Upto 31st May, 2014)

Mrs. G.Vritika (Daughter of Mrs. Saroja Vivekanand)

Mrs. G.Vaishnavi (Daughter of Mrs. Saroja Vivekanand)

Mrs. B.L. Sujata (Spouse of Mr. V.Vallinath)

iv) Enterprises in which key management personnel and their relatives have control:

a) Aslesha Constructions Private Limited

b) Visaka Thermal Power Limited

c) Visaka Charitable Trust

22 Provisions, contingent Liabilities and Contingent Assets:

Disclosures required by AS-29 "Provisions, Contingent Liabilities & Contingent Assets"

Contingent Liabilities:

(Rs. Lacs)

Particulars 31st March, 2015 31st March, 2014

Income tax 19.14 72.61

VAT/CST 231.01 93.26

Excise duty/Service Tax* 2,839.50 2,806.96

Total 3,089.65 2,972.83

*Includes Rs.2647.70 lacs( P.Y. Rs.2647.70 lacs) disputed excise duty including penalty for purported under utilization of fly-ash in the product to be eligible for concessional rate of duty. This is in appeal against which a pre -deposit of Rs.450 lacs( P.Y Rs.450 lacs) has been made.

23 Business Segments:

The Company's activities are organized into two operating segments namely, Building Products and Textile Synthetic Yarn. The segments are the basis on which the company reports its primary segment information. The Building Products division produces asbestos sheets, accessories used mostly as roofing material and non asbestos flat sheets and sandwich panels used as interiors. Synthetic Yarn division manufactures Yarn out of blends of polyester, viscose, other materials which go into the weaving of fabric. Segment result includes the respective other income.

Financial Information about business segments is presented as above.

24 Geographical Segments:

The Sales of the above segments are classified as per the geographical segments of the company as Domestic and Exports. Segment Revenue and Expenses:

The Company has an established basis of allocating Joint/Corporate expenses to the segments, which is reasonable, and followed consistently. All other segment revenue and expenses are attributable to the segments. Certain Expenses/Income are not specifically allocable to specific segments and accordingly these expenses are disclosed as unallocated corporate expenses' or income and adjusted only against the total income of the company.

25 Segment Assets and Liabilities:

Segment assets include all operating assets used by a segment and consist principally of operating cash, debtors, inventories and fixed assets, net of allowances and provisions that are reported as direct offsets in the balance sheet. While most assets can be directly attributed to individual segments, the carrying amount of certain assets used jointly by two or more segments is allocated to the segments on a reasonable basis. In such cases, the entire revenue and expenses of these assets including depreciation are also allocated to the same segments. Assets which are not allocable to the segments have been disclosed as 'unallocated corporate assets'. Segment liabilities include all operating liabilities and consist principally of creditors and accrued liabilities. Segment assets and liabilities do not include deferred income taxes. The loans and other borrowings that are not specifically allocable to the various segments are disclosed as 'unallocated corporate liabilities'.

26 Inter Segment Transfers:

The Company adopts a policy of pricing inter-segment transfers at cost to the transferor segment. However, during the year there are no such transactions.

27 Figures for the previous year are reclassified /regrouped and rearranged wherever necessary.


Mar 31, 2014

Note 1.1 Rights attached to equity shares

The Company has only one class of equity shares having a face value of H10/- each . Each holder of equity share is entiltled to one vote per share. The company declares and pays dividends in Indian Rupees. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting.

During the year ended, the amount of dividend per share recognised as distributions to equity shareholders was H2.50/- (Previous Year H6/- including interim dividend of H2.50).

In the event of liquidation of the company, the equity shareholders will be entitled to receive remaining assets of the company, after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders.

Note 1.2

Term loans from banks represent loan taken from HDFC Bank Limited for the fibre cement boards project near Daund Taluk, Pune District in Maharastra. The loan sanctioned is H6,870.00 lacs in the year 2012-13, drawn H1,000.00 lacs in 2012-13 and H5,870.00 lacs in 2013-14, which is repayable in 20 quarterly installments commencing from Jan''14. The current rate of interest is 11% as at the balance sheet date. This loan is secured by first mortgage and charge in favour of the Bank on all the Company''s fixed assets both present and future on pari passu basis with other lenders, second charge on the current assets of the Company and personal guarantee of the Vice-chairman Dr. G. Vivekanand of the Company. During the year 2013-14,the company has repaid an amount of H343.50 lacs and H1,374 lacs is repayable each year from the financial year 2014-15 to 2018-19 (upto December, 2018).

Note 1.3

(i) Loans from others include H102.90 lacs obtained from Life Insurance Corporation of India against key man insurance policy at 9% which matures on 28-03-2018. This loan has no specific terms of repayment.

(ii) The company has availed an interest free loan of H1,523.74 lacs in the financial year 2012-13 from The Pradeshiya Industrial & Investment Corporation of U.P. Ltd for the cement asbestos unit at Raebareli, U.P which is sanctioned under the Industrial Investment Promotion Scheme 2003 . The loan is secured by first charge on the entire fixed assets of the Company both present and future, by way of first pari-passu charge with all the secured lenders of the Company. The loan is repayable (each installment drawn) after 10 years from the date of disbursement. The outstanding amount is repayable in the financial year 2022-23.

Note 1.4

Deferred payment liabilities represent sales tax deferment relating to Cement Asbestos Unit at Patancheru, Medak District in Andhra Pradesh. This loan is interest free and repayable at H200.18 lacs in the year 2019-20 and H21.07 lacs in the year 2020-21.

Note 1.5

Public deposits represent deposits accepted from public carrying interest varying from 11% to 12% . The maturity of these deposits fall on different dates depending on the date of each deposit. There are no deposits matured and remained unpaid as on the balance sheet date.

Note 1.6

The company has obtained data process equipments on finance lease which is payable in quarterly installments. The rate of interest varies from 10% to 13% per annum.

Note 1.7

Security deposits include deposits received from stockists (i.e Dealers) H2,267.58 lacs (P.Y. H2,032.56 lacs), transporters H26.34 lacs (P.Y. H27.09 lacs) , sales agents H50.36 lacs (P.Y. H41.55 lacs) as collateral at the time of agreement/contract. These have no specific maturity date and are not repayable as long as they continue business with the company. These deposits carry interest at the rate of 9% per annum.

Note 1.8

Working capital Loans from State Bank of India and State Bank of Hyderabad (under consortium arrangement) are repayable on demand which are secured on pari-passu basis by hypothecation of the Company''s entire movable assets including stocks, all raw materials, work-in-process, stores & spares, finished goods and book debts, present and future, and personal guarantee of the Vice- chairman Dr. G. Vivekanand of the Company.

Note 1.9

Unsecured short term loans from banks include buyers credit availed from a) Kotak Mahindra Bank Limited of H670.88 lacs (P.Y. H3,087.99 lacs), b) HDFC Bank Limited of H2,466.86 lacs (P.Y. H3,925.69 lacs) , c) Yes Bank Limited of H903.17 lacs (P.Y. H1,250.02 lacs) and d) short term loan of H5,000 lacs (P.Y. 5000 lacs) from ICICI Bank ltd. These loans are backed by the personal guarantee of Vice-Chairman Dr. G. Vivekanand of the Company. All these buyers credit loans are repayable within six months from the date of availment. The short term loan taken from ICICI is repayable in June''14.

Note 1.10

Expense payable reperesents amount payable to various parties like transporters, advertising, security and other contractors. These also include provisions for current salaries, wages and other employee benefits.

Note 1.11

Statutory liabilites include liabilites accounted towards sales tax, service tax,excise duty and TDS.

Note 1.12 Defined Benefit plans:

The company operates post retirement gratuity plan with LIC. The present value of obligation is determined based on actuarial valuation using the Projected Unit Credit Method, which recognises each period of service giving rise to additional unit of employee benefit entitlement and measures each unit separately to build up the final obligation. The obligation of leave encashment is recognised in the same manner as gratuity.

Note 2

During the year the Company has set up a new fibre cement sheet (Non-Asbestos) plant near Pune. The plant has commenced commercial production from 4th October, 2013. The Cost of fixed assets including pre-operative expenditure has been capitalized.

Note 3

Capital work in progress includes H2029.80 lacs incurred for Solar Photovoltaic (SPV) Power Plant of 2.5 MV at Miryalguda, Nalgonda District in Andhra Pradesh.

Note 4

We have recorded all known liabilities in the financial statements. The Company has not received any intimations from suppliers regarding their status under the micro, small and medium enterprises development act, 2006 and hence disclosures, if any relating to amounts unpaid as at the year end together with interest paid or payable as required under the said Act have not been given.

Note 5 Related Party Disclosures

i) Key management personnel:

Mrs. G. Saroja Vivekanand - Managing Director

Mr. M. P. Venkateswara Rao - Whole time Director

ii) Relatives of key management personnel:

Dr. G. Vivekanand - Vice Chairman (Spouse of Mrs. Saroja Vivekanand)

Mr. G. Vamsi Krishna (Son of Mrs. Saroja Vivekanand)

iii) Enterprise in which key management personnel and their relatives have control: a) Aslesha Constructions Private Limited

iv) Associate Company:

a) Visaka Thermal Power Limited

Note 6 Provisions, Contingent Liabilities and Contingent Assets

Disclosures required by AS-29 "Provisions, Contingent Liabilities & Contingent Assets"

(Rs.in Lacs)

Particulars 31st March, 2014 31st March, 2013

Contingent Liabilities:

Income tax 72.61 97.61

VAT/CST 93.26 52.41

Excise duty/Service Tax* 2,806.96 2,806.96

Total 2,972.83 2,956.98

* Includes H2,647.70 lacs (P.Y. H2,647.70 lacs) disputed excise duty including penalty for purported under utilization of fly-ash in the product to be eligible for concessional rate of duty. This is in appeal against which a pre -deposit of H450 lacs (P.Y. H450 lacs) has been made.

Business Segments:

The Company''s activities are organized into two operating segments namely, Building Products and Textile Synthetic Yarn. The segments are the basis on which the company reports its primary segment information. The Building Products division produces asbestos sheets, accessories used mostly as roofing material and non asbestos flat sheets and sandwich panels used as interiors. Synthetic Yarn division manufactures Yarn out of blends of polyester, viscose, other materials which go into the weaving of fabric. Segment result includes the respective other income.

Financial Information about business segments is presented as above.

Geographical Segments:

The Sales of the above segments are classified as per the geographical segments of the company as Domestic and Exports.

Segment Revenue and Expenses:

The Company has an established basis of allocating Joint/Corporate expenses to the segments, which is reasonable, and followed consistently. All other segment revenue and expenses are attributable to the segments. Certain Expenses/Income are not specifically allocable to specific segments and accordingly these expenses are disclosed as unallocated corporate expenses'' or income and adjusted only against the total income of the company.

Segment Assets and Liabilities:

Segment assets include all operating assets used by a segment and consist principally of operating cash, debtors, inventories and fixed assets, net of allowances and provisions that are reported as direct offsets in the balance sheet. While most assets can be directly attributed to individual segments, the carrying amount of certain assets used jointly by two or more segments is allocated to the segments on a reasonable basis. In such cases, the entire revenue and expenses of these assets including depreciation are also allocated to the same segments. Assets which are not allocable to the segments have been disclosed as ''unallocated corporate assets''. Segment liabilities include all operating liabilities and consist principally of creditors and accrued liabilities. Segment assets and liabilities do not include deferred income taxes. The loans and other borrowings that are not specifically allocable to the various segments are disclosed as ''unallocated corporate liabilities''.

Inter Segment Transfers:

The Company adopts a policy of pricing inter-segment transfers at cost to the transferor segment. However, during the year there are no such transactions.

Note 7

Figures for the previous year are reclassified /regrouped and rearranged wherever necessary.


Mar 31, 2013

Note 1 Rights attached to equity shares

The Company has only one class of equity shares having a face value of Rs.10 /- each . Each holder of equity share is entiltled to one vote per share. The company declares and pays dividends in Indian Rupees. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting

Note 2

Term loans from banks represent loan taken from HDFC Bank Limited for the fibre cement boards project near Daund Taluk, Pune District in Maharastra. The loan sanctioned is Rs.6870.00 lacs out of which Rs.1000 lacs is drawn during the year 2012-13. The loan is repayable in 20 quarterly installments commencing from Jan''14. The current rate of interest is 10.70% as at the balance sheet date. This loan is secured by first mortgage and charge in favour of HDFC Bank Ltd on all the Company''s fixed assets both present and future on pari passu basis with other lenders, second charge on the current assets of the Company and personal guarantee of the Vice-chairman Dr G Vivekanand of the Company. Out of the above Rs.50.00 lacs is repayable in the financial year 2013-14 and Rs.200.00 lacs each year from the financial year 2014-15 to 2018-19 (upto December, 2018)

Note 3

(i) Loans from others include Rs.102.90 lacs obtained from Life Insurance Corporation of India against key man insurance policy at 9% which matures on 28-03-2018. This loan has no specific terms of repayment

(ii)The company has availed an interest free loan of Rs.1523.74 lacs during the financial year from The Pradeshiya Industria & Investment Corporation of U.P. Ltd for the cement asbestos unit at Raebareli, U.P which is sanctioned under the ndustrial Investment Promotion Scheme 2003 . The loan is secured by first charge on the entire fixed assets of the Company both present and future, by way of first pari-passu charge with all the secured lenders of the Company. The ban is repayable (each installment drawn) after 10 years from the date of disbursement. The outstanding amount is repayable in the financial year 2022-23

Note 4

Deferred payment liabilities represent sales tax deferment relating to Cement Asbestos Unit at Patancheru, Medak District in Andhra Pradesh. This loan is interest free and repayable at Rs.200.18 lacs in the year 2019-20 and Rs.21.07 lacs in the year 2020-21.

Note 5

Public deposits represent deposits accepted from public carrying interest varying from 11% to 12% . The maturity of these deposits fall on different dates depending on the date of each deposit. There are no deposits which matured and remained unpaid as on the balance sheet date.

Note 6

The company has taken data process equipments on finance lease which is payable in quarterly instalment. The rate of interest varies from 10% to 13% per annum

Note 7

Security deposits include deposits received from stockists (i.e Dealers) Rs.2032.56 Lacs (P.Y Rs.1723.73 Lacs), transporters Rs.27.09 lacs (P.Y. Rs.24.59 Lacs), sales agents Rs.41.55 lacs (P.Y. Rs.37.15 lacs) as collateral at the time of agreement/contract. These have no specific maturity date and are not repayable as long as they continue business with the company. These deposits carry interest at the rate of 9% per annum

Note 8

Working capital Loans from State Bank of India and State Bank of Hyderabad (under consortium arrangement) are repayable on demand which are secured on pari-passu basis by hypothecation of the Company''s entire movable assets including stocks, all raw materials, work-in-process, stores & spares, finished goods and book debts, present and future, and personal guarantee of the Vice-chairman Dr G.Vivekanand of the Company.

Note 9

Unsecured short term loans from banks include buyers credit availed from a) Kotak Mahindra Bank Limited of Rs.3087.99 lacs (P.Y Rs. 2492.88 lacs), b) HDFC Bank Limited of Rs.3925.69 Lacs (P.YRs.829.31 lacs) , c) Yes Bank Limited of Rs.1250.02 lacs (P.Y. Rs. Nil) and d) short term loan of Rs.5000 lacs from ICICI Bank ltd. These loans are backed by the personal guarantee of Vice- Chairman Dr G Vivekanand of the Company. All these loans are repayable within six months from the date of availment. The short term loan is repayable in June 13

Note 10

Expense payable reperesents amount payable to various parties like transporters, advertising, security and other contractors These also include provisions for current salaries, wages and other employee benefits.

Note 11

Statutory liabilites include liabilites accounted towards sales tax, service tax,excise duty and TDS

Note 12

Capital advances include Rs.2330.42 lacs paid for fibre cement boards project at Daund Taluk, Pune District in Maharashtra

Note 13

Interest income represents Interest on electricity deposits, Bank deposits and on over due bills from customers

Note 14

Miscellaneous income includes sales tax refund, rental income and sale of advertisement rights etc.

Note 15 Employee Benefits:

As per Accounting Standard 15 "Employee Benefits", the disclosures as defined in the Accounting Standard are given below:

Note 16 Defined Benefit plans:

The company operates post retirement gratuity plan with LIC. The present value of obligation is determined based on actuaria valuation using the Projected Unit Credit Method, which recognises each period of service giving rise to additional unit of employee benefit entitlement and measures each unit separately to build up the final obligation. The obligation of leave encashment is recognised in the same manner as gratuity.

Note 17

Capital work in progress includes Rs.1519.46 lacs (including borrowing cost of Rs.64.05 lacs on Rs.1000 lacs drawn from HDFC Bank Ltd) incurred for fibre cement boards plant near Daund, Pune district in Maharastra state

Note 18

We have recorded all known liabilities in the financial statements. The Company has not received any intimations from suppliers regarding their status under the micro, small and medium enterprises development act, 2006 and hence disclosures, if any relating to amounts unpaid as at the year end together with interest paid or payable as required under the said Act have not been given

Note 19 Related Party Disclosures i) Key management personnel:

Mrs. G.Saroja Vivekanand - Managing Director Mr. M.P.Venkateswara Rao - Whole time Director

ii) Relatives of key management personnel:

Dr.G.Vivekanand - Vice Chairman (Spouse of Mrs. Saroja Vivekanand) Mr.G.Venkat Krishna (Son of Mrs.Saroja Vivekanand) Mr.G.Vamsi Krishna (Son of Mrs.Saroja Vivekanand) Miss.G.Vrithika (Daughter of Mrs. Saroja Vivekanand) Miss.G.Vaishnavi (Daughter of Mrs. Saroja Vivekanand)

iii) Enterprise in which key management personnel and their relatives have control:

a) Aslesha Constructions Private Limited

iv) Associate Company:

a) Visaka Thermal Power Limited

Notes:

Business Segments:

The Company''s activities are organized into two operating segments namely, Building Products and Textile Synthetic Yarn The segments are the basis on which the company reports its primary segment information. The Building Products division produces asbestos sheets, accessories used mostly as roofing material and non asbestos flat sheets and sandwich panels used as interiors. Synthetic Yarn division manufactures Yarn out of blends of polyester, viscose, other materials which go into the weaving of fabric. Segment result includes the respective other income.

Financial Information about business segments is presented as above.

Geographical Segments:

The Sales of the above segments are classified as per the geographical segments of the company as Domestic and Exports

Segment Revenue and Expenses:

The Company has an established basis of allocating Joint/Corporate expenses to the segments, which is reasonable, and followed consistently. All other segment revenue and expenses are attributable to the segments. Certain Expenses/Income are not specifically allocable to specific segments and accordingly these expenses are disclosed as unallocated corporate expenses'' or income and adjusted only against the total income of the company.

Segment Assets and Liabilities:

Segment assets include all operating assets used by a segment and consist principally of operating cash, debtors, inventories and fixed assets, net of allowances and provisions that are reported as direct offsets in the balance sheet. While most assets can be directly attributed to individual segments, the carrying amount of certain assets used jointly by two or more segments is allocated to the segments on a reasonable basis. In such cases, the entire revenue and expenses of these assets including depreciation are also allocated to the same segments. Assets which are not allocable to the segments have been disclosed as ''unallocated corporate assets''. Segment liabilities include all operating liabilities and consist principally of creditors and accrued ''labilities. Segment assets and liabilities do not include deferred income taxes. The loans and other borrowings that are not specifically allocable to the various segments are disclosed as ''unallocated corporate liabilities''

Inter Segment Transfers:

The Company adopts a policy of pricing inter-segment transfers at cost to the transferor segment. However, during the year there are no such transactions.

Note 30

Figures for the previous year are reclassified /regrouped and rearranged wherever necessary.


Mar 31, 2010

1) Disclosures required by AS-29 "Provisions, Contingent Liabilities & Contingent Assets".

a) Contingent Liabilities: (Rs. in lakhs) 2009-10 2008-09 In respect of Income tax 19.75 68.80 Value added tax 10.93 10.93 Excise duty/Service tax ** 2654.80 5.45

** Includes Rs.2647.70 lakhs disputed excise duty including penalty for purported under utilisation of flyash in the product to be eligible for concessional rate of duty.

2) We have recorded all known liabilities in the financial statements. The Company has not received any intimation from suppliers regarding their status under the Micro Small and Medium Enterprises Development Act, 2006 and hence disclosures, if any, relating to amounts unpaid as at the year end together with interest paid/payable as required under the said Act have not been given.

3) a) Aggregate Related Party Disclosures :

i) Key Management personnel:

Mrs.G.Saroja Vivekanand - Managing Director Dr.G.Vivekanand - Vice Chairman (Part of the year) Mr.M.P.Venkateswara Rao - Wholetime Director

ii) Relatives of key management personnel:

Mrs.P.Vishwashanthi - Sister Mr.G.Venkata Krishna- Son Mr.G.Vamsi Krishna - Son Miss.G.Vrithika - Daughter Miss.G.Vaishnavi - Daughter

iii) Other entities under control:

Visaka Charitable Trust

iv) Enterprise in which key management personnel and their relatives have control:

a) Aslesha Constructions Private Limited.

v) Associate

a) Visaka Thermal Power Private Limited

4) Basic earnings per equity share has been computed by dividing net profit after tax by the weighted average number of equity shares outstanding for the period. Diluted earnings per equity share has been computed using the weighted average number of equity shares and dilutive potential equity shares outstanding during the period. The reconciliation between basic and diluted earnings per equity share is as follows:

5) During the year the Company has created deferred tax liability of Rs.43.19 lakhs (Previous year Rs. 192.15 lakhs) on account of timing difference on depreciation and reversed deferred tax Asset Rs.24.62 lakhs on account of allowances in the income tax previously disallowed (previous year created of Rs.30.81 lakhs).

6) The Company has setup a sandwich panel manufacturing unit within the premises of the V-boards plant at Miryalguda in Andhra pradesh. The unit has commenced commercial production on 1st January 2010.

7) Depreciation for the year includes Rs.254.40 lakhs amortised in respect of the balance of advertisement rights, existing in the beginning of the year. The amount has been charged to profit & loss in the year as the management is of the opinion that the value of future economic benefits is uncertain.

8) Fixed assets written off includes Rs.175.99 lakhs scrapped in the cement asbestos unit at Pune consequent to modernisation.

NOTES:

Business Segments:

The Companys activities are organised into two operating segments namely, Building Products and Textile Synthetic Yarn. The segments are the basis on which the Company reports its primary segment information. The Building Products division produces asbestos sheets, accessories used mostly as roofing material and non asbestos flat sheets and sandwich panels used as interiors. Synthetic Yarn division manufactures Yarn out of blends of polyester, viscose, other materials which go into the weaving of fabric. Segment result includes the respective other income. Financial Information about business segments is presented as above.

Geographical Segments:

The Sales of the above segments are classified as per the geographical segments of the Company as Domestic and Exports.

Segment Revenue and Expenses:

The Company has an established basis of allocating Joint/Corporate expenses to the segments, which is reasonable, and followed consistently. All other segment revenue and expenses are attributable to the segments. Certain Expenses/Income are not specifically allocable to specific segments and accordingly these expenses are disclosed as unallocated corporate expenses or income and adjusted only against the total income of the Company.

Segment Assets and Liabilities:

Segment assets include all operating assets used by a segment and consist principally of operating cash, debtors, inventories and fixed assets, net of allowances and provisions that are reported as direct offsets in the balance sheet. While most assets can be directly attributed to individual segments, the carrying amount of certain assets used jointly by two or more segments is allocated to the segments on a reasonable basis. In such cases, the entire revenue and expenses of these assets including depreciation are also allocated to the same segments. Assets which are not allocable to the segments have been disclosed as unallocated corporate assets. Segment liabilities include all operating liabilities and consist principally of creditors and accrued liabilities. Segment assets and liabilities do not include deferred income taxes. The loans and other borrowings that are not specifically allocable to the various segments are disclosed as unallocated corporate liabilities.

Inter Segment Transfers:

The Company adopts a policy of pricing inter-segment transfers at cost to the transferor segment. However, during the year there are no such transactions.

9) Figures for the previous year are regrouped and rearranged wherever necessary.

 
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