Home  »  Company  »  Vishnu Chemicals  »  Quotes  »  Notes to Account
Enter the first few characters of Company and click 'Go'

Notes to Accounts of Vishnu Chemicals Ltd.

Mar 31, 2016

Disclosures:

1. All the equity shares carry equal rights and obligations including for dividend and with respect to voting rights.

2. 7% Redeemable Preference Shares which are cumulative in nature are liable to be redeemed at par after the expiry of ten years ending with March, 2018 ( Rs.4000 Lakhs) and September, 2019 Rs.750 Lakhs)

3. Dividend on Redeemable Preference Share Capital: Dividends on the 7% Redeemable Preference Share Capital of Rs.4750 Lakhs has not been provided for the year 2015-16. However, as the Preference Shares are cumulative in nature, the amount payable as dividend for the year of Rs.332.50 Lakhs (Rs.332.50 Lakhs ) is being shown as a Contingent liability.

4. Names of shareholders holding more than 5% of the Share capital and their shareholding.

Disclosures:

Terms & Conditions of the above Loans are given below:

A) Secured Loans:

1. Term Loans from banks represents loans from Consortium of Bankers - State Bank of Hyderabad, Andhra Bank, Indian Overseas Bank and Union Bank of India. Term Loans are secured by charge on the assets acquired out of the term loan including mortgage of building constructed and charge on entire existing movable/immovable assets of the Company. The above loans are further secured by personal guarantee of Promoter Directors and others. All the above securities rank in all respects pari passu amongst the consortium of bankers.

2. The term loans are repayable in equated periodic installments outstanding up to 7 years (5 Years) period from the date of respective loan. These are repayable by 2022-23 (2019-20) and carry an average interest of 14.30% p.a. The aggregate amount of installments outstanding as on March 31, 2016 is Rs.6476.46 Lakhs (Rs.5994.92 Lakhs)

3. The hire purchase loans are secured against the assets purchased out of those loans. The net carrying amount of assets acquired on hire purchase as on 31st March 2016 is Rs.2,57,82,362/- (Rs.2,87,62,648/-). The company had capitalized the assets at their fair value considering that the hire purchase agreements are in the nature of Finance Lease as defined in Accounting Standard 19 on “Leases”. Installment payment are apportioned between Finance charge and Principal which is disclosed under secured loans. The details are as follows:-

Disclosures:

A) Secured Loans:

1. The Rate of Interest for Loans repayable on demand from Banks ranges from respective Banks Base Rate 2.50% to 4.75%

2 Security:

Working Capital Loans from Consortium Bankers consisting of State Bank of Hyderabad, State Bank of India, Union Bank of India, Indian Overseas Bank, Andhra Bank and Punjab National Bank are secured by first pari passu charge by way of hypothecation of inventories, book debts and other current assets of the company, and second pari passu charge on the fixed assets of the company. The directors have extended their personal security i.e Land, Plots, Buildings & Shares etc.

3 Guarantees:

All the above loans are guranteed by the Promoter Directors.

B) Unsecured Loans:

1 Inter Corporate Loans:

These loans carry Interest rate of 15.5% and are repayable on demand

2. Segment Reporting:

Geographic Segment:

The Company has two (2) geographical segments, i.e., (1) Domestic (2) Overseas.

3. Related Party Disclosures:

Key Management Personnel:

1. Sri. Ch. Krishna Murthy, CMD

2. Smt. Ch. Manjula, Director

3. Sri Ch. Siddartha, Director

4. Sri T. Rama Krishna, CFO

5. Ms. Shruti Gupta, Company Secretary

Concerns in which key management personnel are proprietors/directors:

1. Vasantha Transport Corporation

2. KMS Infrastructure Limited

3. Vishnu Life Sciences Limited

4. Vishnu Hongkong Limited

5. Solvay Vishnu Barium Pvt Ltd.,

6. There is No change in Equity Share Capital. The Public Shareholding as on 31.03.2016 is 25%.

7. The entire preference Share Capital is held by promoters. The preference shareholders have given their ''NOC’ to declare Dividend on Equity Share holders. In order to keep sufficient Cash flows in the Company, the preference shareholders have given their consent, to defer the dividend on their Shares. However the dividend payable on preference Share Capital have been shown as Contingent Liability.

8. Capitalization of Interest of Rs.312.82 Lakhs during 2007-08 has resulted in overstatement of Rs.312.82 Lakhs in gross block of fixed assets, overstatement of Rs.96.87 Lakhs in accumulated depreciation and overstatement of Rs.215.95 Lakhs in net block of fixed assets as at March 31, 2015. During the year under review, the Company has reversed the interest capitalized in the previous years and made necessary adjustments both to the gross block and accumulated depreciation and the balance amount of Rs.215.95 Lakhs is adjusted from the Surplus balance carried forward.

9. Additional information pursuant to note 5 of Part II of the revised Schedule VI of the Companies Act, 1956.

10. Figures for the previous year have been regrouped, rearranged and reclassified wherever considered necessary to conform to the classification/ presentation of the current year.


Mar 31, 2015

1. CONTINGENT LIABILITIES AND COMMITMENTS (To the Extent Not Provided For) (In Rupees) as on 31.03.2015. as on 31.03.2014

1. Contingent Liabilities:

a. Claims against Company not acknowledged as debt. 22,595,226 21,379,526

b. Indemnity given by Company to the banks for Bank guarantees and Letters of Credit 434,581,250 163,242,000

2. Commitments:

a. Dividend on 7% Cumulative Redeemable Preference Shares including

Dividend Tax 262,918,872 222,711,365

3. Related Party Disclosures: Key Management Personnel:

1. Sri. Ch. Krishna Murthy, CMD

2. Smt. Ch. Manjula, Director

3. Sri Ch. Siddartha, Director

4. Sri T. Rama Krishna, CFO

5. Sri B.S. Harikrishna, Company Secretary

Concerns in which key management personnel are proprietors/directors:

1. Vasantha Transport Corporation

2. KMS Infrastructure Limited

3. Vishnu Life Sciences Limited

4. Vishnu Hong Kong Limited

4. Figures for the previous year have been regrouped, rearranged and reclassifed wherever considered necessary to conform to the classifcation/ presentation of the current year.


Mar 31, 2014

SHARE CAPITAL

1. All the equity shares carry equal rights and obligations including for dividend and with respect to voting rights.

2. 7% Redeemable Preference Shares which are cumulative in nature are liable to be redeemed after the expiry of ten years from the date of its issue.

3. Dividend on Redeemable Preference Share Capital:Dividends on the 7% Redeemable Preference Share Capital of Rs.4750 Lakhs has not been provided for the year 2013-14. However as the Preference Shares are cumulative in nature, the amount payable as dividend of Rs.332.50 Lakhs for the year (Rs.332.50 Lakhs) is being shown as a Contingent liability.

4. Names of shareholders holding more than S% of the Share capital and their shareholding.

LONG TERM BORROWINGS

Terms & Conditions of the above Loans are given below:

1. Term Loans from banks represents loans from Consortium Bankers being State Bank of Hyderabad and Indian Overseas Bank. Term Loans are secured by pari passu charge on the assets acquired out of the term loan including mortgage of building constructed and charge on entire existing movable/immovable assets of the Company. The above loans are further secured by personal guarantee of Directors, entire fixed assets of M/s Vishnu Life Sciences Ltd and also the relatives of the directors have given their personal guarantee. All the above securities will be on a pari passu basis with all the consortium bankers.

2. The term loans are repayable in equated periodic instalments outstanding up to 4 years period from the date of respective loan. These are repayable by 2018-19 and carry an average interest of 15% p.a. The aggregrate amount of instalments outstanding as on March 31, 2014 is Rs. 3,996.56 Lakhs.

3. The hire purchase loans are secured against the assets purchased out of those loans. The net carrying amount of assets acquired on hire purchase as on 31st March 2014 is Rs. 2,61,96,181/-(Rs. 79,03,110/-). The company had capitalized the assets at their fair value considering that the hire purchase agreements are in the nature of Finance Lease as defined in Accounting Standard 19 on "Leases" Installment payment are apportioned between Finance charge and Principal which is disclosed under secured loans.

SHORT TERM BORROWINGS

A) Secured Loans:

1 The Rate of Interest for Loans repayable on demand from Banks ranges from respective Banks Base Rate 4.2S% to 6.75%

2 Security: Working Capital Loans from Consortium Bankers consisting of State Bank of Hyderabad, State Bank of India, Union Bank of India, Indian Overseas Bank, Andhra Bank and Punjab National Bank are secured by first pari passu charge by way of hypothecation of inventories, book debts and other current assets of the company, and second pari passu charge on the fixed assets of the company. The directors have extended their personal security i.e Land, Plots, Buildings & Shares etc.

3 Gurantees: All the above loans are guranteed by the Directors, Shri. Ch. Krishna Murthy, Smt. Ch. Manjula & Shri. Ch. Sidhartha

B) Unsecured Loans

1 Inter Corporate Deposits:

These are interest free and no terms of repayment are specified.

CONTIGENT LIABLITIES

(Rs. in lakhs)

As on As on 31.03.2014 31.03.2013

1. Contingent Liabilities:

a. Claims against company not acknowledged as debt. 21,379,526 9,536,624

b. Indemnity given by company to the banks for Bank guarantees and Letters of Credit 163,242,000 147,227,616

c. Dividend on 7% Cumulative Redeemable Preference Shares including Dividend Tax 222,968,222 184,067,384


Mar 31, 2013

1. All the equity shares carry equal rights and obligations including for dividend and with respect to voting rights.

2. 7% Redeemable Preference Shares which are cumulative in nature, are liable to be redeemed after the expiry of ten years from the date of there issue

3. "Dividend on Redeemable Preference Share Capital:

Dividends on the 7% Redeemable Preference Share Capital of Rs. 4750 Lakhs has not been provided for the year 2012-13. However as the Preference Shares are cumulative in nature, the amount payable as dividend of Rs. 332.50 Lakhs (Rs. 332.50 Lakhs) is being shown as a Contingent liability."

4. Names of shareholders holding more than 5% of the Share capital and their shareholding.

5. The Rate of Interest for Term Loans from Banks ranges from Base Rate -1.5% to 5%

6. Security:

The term loans from banks are secured by way of pari passu first charge on the fixed assets of the Company and pari passu second charge on the current assets of the company. The above loans are further secured by a pari passu first charge over the fixed assets of Vishnu Life Sciences Limited and the collateral security of assets of some of the Directors and their relatives.

7. Gurantees:

All the above term loans are guranteed by the Directors, Sri Ch. Krishna Murthy, Smt. Ch. Manjula & Sri Ch. Sidhartha

The Company has provided for Deferred Tax in accordance with the Accounting Standard on "Accounting for Taxes on Income" (AS 22) issued by the institute of Chartered Accountants of India. The details of deferred tax assets and liabities of the Company as on the date of Balance Sheet as above:

The Company has no information as to whether any of its vendors constitute a "Supplier" within the meaning of Section 2 (n) of the Micro, Small and Medium Enterprises Development Act, 2006 as no declarations were received under the said Act from them.

Loans from Banks

1 The Rate of Interest for Loans repayable on demand from Banks range from Base Rate 4.25% to 6.75%

2 Security:

Working Capital Loans from Banks are secured by pari passu first charge by way of hypothecation of inventories, book debts and other current assets of the company, and pari passu second charge on the fixed assets of the company. The directors have extended their personal security.

3 Gurantees:

All the above loans are guranteed by the Directors, Sri Ch. Krishna Murthy, Smt. Ch. Manjula & Sri Ch. Sidhartha

The Company has no information as to whether any of its vendors constitute a "Supplier" within the meaning of Section 2 (n) of the Micro, Small and Medium Enterprises Development Act, 2006 as no declarations were received under the said Act from them.

(Capital Advances include Rs. 55,82,920/- C 23,91,254/-) paid to a related party towards advance for Civil Works) The Company has made current tax provision for Minimum Alternate Tax u/s 115JB of the Income Tax Act 1961. As per the provisions of section 115JAA, MAT Credit Receivable has been recognized in the books of account as an asset to the extent there is convincing evidence that the company will pay normal Income tax during the specified period. MAT Credit is recognized in accordance with the guidance note issued by the Institute of Chartered Accountants of India. The Company will review the same at each balance Sheet date and write down the carrying amount of MAT Credit entitlement to the extent there is no longer convincing evidence to the effect that the company will pay normal Income Tax during the specified period.

8. CONTINGENT LIABILITIES AND COMMITMENTS (To the Extent Not Provided For):

(Amount in Rs.)

As on As on

31.03.2013 31.03.2012

1. Contingent Liabilities:

a. Claims against company not acknowledged as debt. 9,536,624 8,640,782

b. Indemnity given by company to the banks for 147,227,616 163,088,070 Bank guarantees and Letters of Credit

c. Dividend on 7% Cumulative Redeemable Preference 184,067,384 145,423,403 Shares including Dividend Tax

2. Commitments:

Estimated amount of Contracts remaining to be executed ---- 15,312,055 on Capital account and not provided for.

9. Segment Reporting:

Geographic Segment:

The Company has two (2) geographical segments, i.e., (1) Domestic: (2) External. Revenue attributable to location of customers is as follows:

10. Related Party Disclosures :

Key Management Personnel:

1. Sri Ch. Krishna Murthy, CMD

2. Smt. Ch. Manjula, Director

3. Sri Ch. Siddartha, Director

Concerns in which key management personnel are proprietors/directors:

1. Vasantha Transport Corporation

2. KMS Infrastructure Limited

3. Vishnu Life Sciences Limited

11. There is No change in Equity Share Capital. The Public Shareholding as on 31.03.2013 is 25%.

12. The sale of Land in the earlier years is recognized in the books on settlement of all the issues in connection therewith.

13. Figures for the previous year have been regrouped, rearranged and reclassified wherever considered necessary to conform to the classification/ presentation of the current year.


Mar 31, 2012

1. All the equity shares carry equal rights and obligations including for dividend and with respect to voting rights.

2. 7% Cumulative Redeemable Preference Shares which are cumulative nature are liable to be redeemed after the expiry of ten years from the date of its issue

3. Names of shareholders holding more than 5% of the Share capital and their shareholding.

4. "Dividend on Cumulative Redeemable Preference Share Capital:

Dividends on the 7% Cumulative Redeemable Preference Share Capital of Rs. 4,750 Lakhs has not been provided for the period 2011-12. However as the Preference Shares are cumulative in nature, the amount payable as dividend of Rs. 332.50 Lakhs ( Rs. 332.50 Lakhs) is being shown as a Contingent liability."

Figures in the brackets relate to Previous Financial Year

The rate of Interest for Term Loans from Banks is ranging from respective Banks Base Rate - 1.50% to 5%

2 Security:

The term loans from banks are secured by way of first pari passu charge on the fixed assets of the Company and second pari passu charge on the current assets of the company. The directors have extended their personal security i.e land, plots, Shares etc., first pari passu charge over the entire fixed assets of M/s. Vishnu Life Sciences Limited and also the relatives of the directors have given their personal security.

3 Gurantees:

All the above term loans are guranteed by the Directors, Sri. Ch. Krishna Murthy, Smt. Ch. Manjula & Sri. Ch. Siddartha

4 The hire purchase loans taken from ICICI Bank is secured against the assets purchased out of those loans. The net carrying amount of assets acquired on hire purchase as on 31st March 2012 is A 85,60,462/- (A 75,92,572/-). The company had capitalized the assets at their fair value considering the hire purchase agreements are in the nature of Finance Lease as defined in Accounting Standard 19 on "Leases" Installment payment are apportioned between Finance charge and Principal disclosed under secured loan. The details are as follows:-

5. DEFERRED TAX LIABILITIES (NET)

The Company has provided for Deferred Tax in accordance with the Accounting Standard on "Accounting for Taxes on Income" (AS 22) issued by the institute of Chartered Accountants of India. The details of deferred tax assets and liabities of the Company as on the date of Balance Sheet are as follows:

Loans from Banks

1 The rate of Interest for Loans repayable on demand from Banks is ranging from respective Banks Base Rate 4.25% to 6.75%

2 Security:

Working Capital Loans from Banks are secured by first pari passu charge by way of hypothecation of inventories, book debts and other current assets of the company, and second pari passu charge on the fixed assets of the company. The directors have extended their personal security i.e Land, Plots, Buildings & Shares etc.

3 Gurantees:

All the above loans are guranteed by the Directors, Sri. Ch. Krishna Murthy, Smt. Ch. Manjula & Sri. Ch. Siddartha

The Company has no information as to whether any of its vendors constitute a "Supplier" within the meaning of Section 2 (n) of the Micro, Small and Medium Enterprises Development Act, 2006 as no declarations were received under the said Act from them.

6. CONTINGENT LIABILITIES AND COMMITMENTS (To the Extent Not Provided For):

(Amount in Rs.)

As on As on 31.03.2012 31.03.2011

1. Contingent Liabilities:

a Claims against company not acknowledged as debt. 8,640,782 8,640,782

b Indemnity given by company to the banks for Bank Guarantees and Letters of Credit 163,088,070 237,925,000

2. Commitments:

a Estimated amount of Contracts remaining to be executed on Capital account and not provided for. 15,312,055 -

b Dividend on 7% Cumulative Redeemable Preference Shares 125,125,000 91,875,000

7. Related Party Disclosures:

Key Management Personnel:

1. Sri. Ch. Krishna Murthy, CMD

2. Smt. Ch. Manjula, Director

3. Sri. Ch. Siddartha, Director

Concerns in which key management personnel are proprietors/directors:

1. Vasantha Transport Corporation

2. KMS Infrastructure Limited

3. Vishnu Life Sciences Limited

8. Due to non-availability of suitable candidate, the company has not appointed a full time company secretary as per requirement of section 383 A of the Companies Act, 1956. However the company is making efforts to appoint a full time secretary, a compliance Certificate has been obtained from a Practicing Company Secretary.

9. There is No change in Equity Share Capital. The Public Shareholding as on 31.03.2012 is 25%.

10. Figures for the previous year have been regrouped, rearranged and reclassified wherever considered necessary to conform to the classification as required by the Revised Schedule VI of the Companies Act, 1956.


Mar 31, 2011

1. Redeemable Preference Shares:

The present Authorised Capital of the Company is fully issued and subscribed and for allotting the Share Application money of Rs. 1000 Lakhs received, the Authorised Capital needs to be increased by a resolution of the General Body, which is planned to be taken up in the ensuing Annual General Meeting.

Dividend on Redeemable Preference Share Capital:

Dividends on the 7% Redeemable Preference Share Capital of Rs.47.50 crores has not been provided for the year 2010-11. However as the Preference Shares are cumulative in nature, the amount payable as dividend is being shown as a Contingent liability.

2. Secured Loans:

i) The Term Loans from Banks are secured by way of first pari passu charge on the fixed assets of the Company and second pari passu charge on the current assets of the company and are inclusive of overdue accrued Interest of Rs. 280.09 lakhs and principal overdue of Rs.633.73 lakhs.

ii) Working capital loans from Banks are secured by first pari passu charge by way of hypothecation of inventory, book debts and other current assets of the company, and second pari passu charge on the fixed assets of the company.

3. Contingent Liabilities: (Rs. in Lakhs)

As on As on 31.03.2011 31.03.2010

(a) Claims against the company 86.41 138.30 not acknowledged as debts

(b) Indemnity given by Company 2379.25 5572.52 to the banks for Bank Guarantees and Letters of Credit

(c) Estimated amount of Contracts 0.00 652.88 remaining to be executed on capital account and not provided for (Net of Advances)

(d) Dividend on 7% Redeemable 918.75 586.25 Preference Shares

4. Segment Reporting:

For the previous year the company has reported API division as a separate business segment though it did not satisfy the relevant 10% threshold in terms of AS17 and hence not required to be reported. In the current year the 2.48% contribution from API division on all specified thresholds has shrunk to minimal levels and so the reporting of this business segment has been dispensed with and the corresponding previous year's figures are also not being separately disclosed.

5. Related Party Disclosures:

Key Management Personnel:

1. Sri. Ch. Krishna Murthy, CMD

2. Smt. Ch. Manjula, Director

3. Sri Ch. Siddartha, Director

Concerns in which key management personnel are proprietors/directors:

1. Vasantha Transport Corporation

2. KMS Infrastructure Limited

3. Vishnu Life Sciences Limited

6. The company is unable to furnish the additional information required in terms of Section 22 of The Micro, Small and Medium Enterprises Development Act, 2006 since it has no information from any of its creditors as to whether any of them constitute ‘Suppliers' within the meaning of Section 2(n) of the Act

7. Due to non availability of suitable candidate, the company has not appointed a full time company secretary as per requirement of section 383 A of the Companies Act, 1956. However the company is making efforts to appoint a full time secretary, a compliance Certificate has been obtained from a Practicing Company Secretary.

8. There is No change in Equity Share Capital. The Public Share holding as on 31.03.2011 is 25.21%.

9. Additional information pursuant to the provisions of paragraphs 3,4C and of Part II of Schedule VI to the Companies Act, 1956.


Mar 31, 2010

1. Redeemable Preference Shares:

The 7% Redeemable Preference Shares are redeemable, at the option of the company after 10 years from the date of issue, in terms of the Articles of Association of the Company.

Dividend on Redeemable Preference Share Capital:

Dividends on the 7% Redeemable Preference Share Capital of Rs.47.50 crores has not been provided for the year 2009-10. However as the Preference Shares are cumulative in nature, the amount payable as dividend is being shown as a Contingent liability.

2. Secured Loans:

i) The Term Loans from Banks are secured by way of first pari passu charge on the fixed assets of the Company and second pari passu charge on the current assets of the company and are inclusive of overdue accrued Interest of Rs.170.75 lakhs and principal overdue of Rs.533.05 lakhs.

ii) Working capital loans from Banks are secured by first pari passu charge by way of hypothecation of inventory, book debts and other current assets of the company, and second pari passu charge on the fixed assets of the company.

3. Contingent Liabilities:

(Rs. in lakhs)

As on As on

31.03.2010 31.03.2009

(a) Claims against the company not acknowledged as debts 138.30 117.62

(b) Indemnity given by Company to the banks for

Bank Guarantees and Letters of Credit 5572.52 1625.65

(c) Estimated amount of Contracts remaining TO BE EXECUTED ON CAPITAL Account and not provided for (Net of Advances) 652.88 755.90

(d) Dividend on 7% Redeemable Preference Shares 586.25 280.00

4. Segment Reporting:

Information given in accordance with the requirement of Accounting Standard - 17, on Segment Reporting issued by the Institute of Chartered Accountants of India.

Companys business segments are as under:

1. Inorganic Chemicals

The Company is engaged in the manufacture of inorganic chemicals which are used in Screen printing, meal treating, leather, water treatment, Active Pharmaceutical ingredients, paint and other specialty areas.

2. Active Pharmaceutical Ingredients (API)

The Company is engaged in the manufacture of APIs which are used in Pharmaceutical industry.

Segment Accounting Policies:

Segment accounting disclosures are in line with accounting policies of the Company. However, the following specific accounting policies have been followed for Segment reporting:

1. Segment Revenue includes Sales and other income directly identifiable with/allocable to the segment including inter-segment revenue.

2. Expenses that are directly identifiable with/allocable to segments are considered for determining the segment result. The expenses, which relate to the Company as a whole and not allocable to Segment, are included under "unallocable expenditure".

3. Income which relates to the Company as a whole and not allocable to segments is included in "unallocable income".

4. Segment assets and liabilities include those directly identifiable with the respective segments. Unallocable corporate assets and liabilities relate to the Company as a whole and not allocable to any segment.

5. Transactions between segments are primarily for materials, which are transferred at market- determined prices

5. Related Party Disclosures:

Key Management Personnel:

1. Sri. Ch. Krishna Murthy, CMD

2. Smt. Ch. Manjula, Director

3. Sri Ch. Siddartha, Whole Time Director

Concerns in which key management personnel are proprietors/directors:

1. Vasantha Transport Corporation

2. KMS Infrastructure Limited

3. Vishnu Life Sciences Limited

6. The company is unable to furnish the additional information required in terms of Section 22 of The Micro, Small and Medium Enterprises Development Act, 2006 since it has no information from any of its creditors as to whether any of them constitute Suppliers within the meaning of Section 2(n) of the Act

7. Due to non availability of suitable candidate, the company has not appointed a full time company secretary as per requirement of section 383 A of the Companies Act, 1956. However the company is making efforts to appoint a full time secretary, a compliance Certificate has been obtained from a Practicing Company Secretary.

8. There is No change in Equity Share Capital. The Public Share holding as on 31.03.2010 is 25.21%.

9. Additional information pursuant to the provisions of paragraphs 3,4C and 4D of Part II Schedule VI to the Companies Act, 1956.