A Oneindia Venture
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Notes to Accounts of AG Ventures Ltd.
Mar 31, 2025
g) Provisions. Contingent Liabilities and Contingent Assets
Provision
Provisions are recognized when the Company has a present obligation (legal or constructive) as a result of a past
event and it is probable that the outflow of resources embodying economic benefits will be required to settled the
obligation in respect of which reliable estimate can be made of the amount of the obligation. When the Company
expects some or all of a provision to be reimbursed, the expense relating to provision presented in the statement of
profit & loss is net of any reimbursement.
If the effect of the time value of money is material, provisions are disclosed using a current pre-tax rate that reflects,
when appropriate, the risk specific to the liability. When discounting is used, the increase in the provision due to the
passage of time is recognized as finance cost.
Contingent liability is disclosed in the notes in case of:
There is a possible obligation arising from past events, the existence of which will be confirmed only by the
occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the Company.
⢠A present obligation arising from past event, when it is not probable that as outflow of resources will be required
to settle the obligation
⢠A present obligation arises from the past event, when no reliable estimate is possible
⢠A present obligation arises from the past event, unless the probability of outflow are remote.
Commitments include the amount of purchase order (net of advances) issued to parties for completion of assets.
Provisions, contingent liabilities, contingent assets and commitments are reviewed at each balance sheet date.
Onerous Contracts
A provision for onerous contracts is measured at the lower of the present value of expected cost of terminating the
contract and the expected cost of continuing with the contract. Before a provision is established, the company
recognizes the impairment on the assets, if any, with the contract.
Contingent assets :
Contingent assets are not accounted in the financial statements unless an inflow of economic benefits is
probable."
h) Revenue from Operations:
(i) Revenue from Contracts with Customers
The Company derives revenue from sale of Commodities
Ind AS 115 âRevenue from Contracts with Customersâ provides a control-based revenue recognition model and
provides a five step application approach to be followed for revenue recognition.
⢠Identify the contract(s) with a customer;
⢠Identify the performance obligations;
⢠Determine the transaction price;
⢠Allocate the transaction price to the performance obligations;
⢠Recognise revenue when or as an entity satisfies performance obligation.
Revenue from contracts with customers is recognised when control of the goods or services are transferred to the
customer at an amount that reflects the consideration to which the Company expects to be entitled in exchange for
those goods or services net of discounts, rebates or schemes, if any, offered by the company. The Company has
generally concluded that it is the principal in its revenue arrangements.
The disclosures of significant accounting judgements, estimates and assumptions relating to revenue from
contracts with customers are provided in Note 13.
Sale of Goods
For sale of goods, revenue is recognised on satisfaction of performance obligation upon transfer of control of
promised products to customers at an amount that reflects the consideration the Company expects to receive in
exchange for those products.
(ii) Investment Income
Investment income is recognised as and when accrued/reinstated as per the terms of the Investments based on
the effective interest rate/appreciation(depreciation) in value of investment as applicable on the basis of quoted
price/statements received from the relevant funds/institutions as applicable. Income from Investments including
interest income is included in revenue from operations in the statement of Profit and Loss.
Dividend income is recognised when the Company''s right to receive dividend is established, and is included in other
income in the statement of profit and loss.
i) Other Revenue Streams
Interest Income
Interest income is accrued on a time basis, by reference to the principal outstanding and at the effective interest
rate applicable, which is the rate that exactly discounts estimated future cash receipts through the expected life of
the financial asset to the asset''s net carrying amount on initial recognition. Interest income is included in other
income in the statement of profit and loss.
j) Employee Benefits
i) Short term employee benefits
Short-term employee benefits in respect of salaries and wages, including non-monetary benefits are
recognised as an expense at the undiscounted amount in the statement of profit and loss for the year in which
the related service is rendered
ii) Defined contribution plans
Employees benefits in the form of the Company''s contribution to Provident Fund, Pension scheme,
Superannuation Fund and Employees State Insurance are defined contribution schemes. The Company
recognises contribution payable to these schemes as an expense, when an employee renders the related
service.
If the contribution payable exceeds contribution already paid, the deficit payable is recognised as a liability
(accrued expense), after deducting any contribution already paid. If the contribution already paid exceeds the
contribution due for service before the end of the reporting period, the Company recognise that excess as an
asset (prepaid expense) to the extent that the prepayment will lead to, for example, a reduction in future
payments or a cash refund.
iii) Defined benefit plans
Retirement benefits in the form of gratuity are considered as defined benefit plans. The Company''s net
obligation in respect of defined benefit plans is calculated by estimating the amount of future benefit that
employees have earned in the current and prior periods, discounting that amount and deducting the fair value
of any plan assets.
The Company provides for its gratuity liability based on actuarial valuation of the gratuity liability as at the
Balance Sheet date, based on Projected Unit Credit Method, carried out by an independent actuary. The
Company contributes to the gratuity fund, which are recognised as plan assets. The defined benefit obligation
as reduced by fair value of plan assets is recognised in the Balance Sheet.
When the calculation results in a potential asset for the company, the recognised asset is limited to the present
value of economic benefits available in the form of any future refunds from the plan or reductions in future
contributions to the plan. To calculate the present value of economic benefits, consideration is given to any
applicable minimum funding requirements.
Remeasurement of the net defined benefit liability, which comprise actuarial gains and losses, the return on
plan assets (excluding interest) and the effect of the asset ceiling (if any, excluding interest), are recognised
immediately in Other Comprehensive Income. Net interest expense (income) on the net defined liability
(assets) is computed by applying the discount rate, used to measure the net defined liability (asset), to the net
defined liability (asset) at the start of the financial year after taking into account any changes as a result of
contribution and benefit payments during the year. Net interest expense and other expenses related to defined
benefit plans are recognised in profit or loss.
When the benefits of a plan are changed or when a plan is curtailed, the resulting change in benefit that
relates to past service or the gain or loss on curtailment is recognised immediately in profit or loss. The
Company recognises gains and losses on the settlement of a defined benefit plan when the settlement occurs.
iv) Other long-term employee benefits
Employee benefits in the form of long term compensated absences are considered as long term employee
benefits. The Company''s net obligation in respect of long-term employee benefits is the amount of future
benefit that employees have earned in return for their service in the current and prior periods. That benefit is
discounted to determine its present value. Remeasurement are recognised in profit or loss in the period in
which they arise.
The liability for long term compensated absences are provided based on actuarial valuation as at the Balance
Sheet date, based on Projected Unit Credit Method, carried out by an independent actuary.
k) Foreign currency transactions
Initial recognition:
Transactions in foreign currencies are translated into the Company''s functional currency at the exchange rates
at the dates of the transactions.
Conversion:
Monetary assets and liabilities denominated in foreign currencies are translated into the functional currency
at the exchange rate at the reporting date. Non-monetary assets and liabilities that are measured at fair value
in a foreign currency are translated into the functional currency at the exchange rate when the fair value was
determined. Non-monetary assets and liabilities that are measured based on historical cost in a foreign
currency are translated at the exchange rate at the date of the transaction.
Exchange difference:
Exchange differences are recognised in Statement of profit & loss. In accordance with Ind-AS 101 âFirst Time
Adoption of Indian Accounting Standards'', the Company has continued the policy of capitalisation of exchange
differences on foreign currency loans taken before the transition date. Accordingly, exchange differences
arising on translation of long term foreign currency monetary items relating to acquisition of depreciable fixed
assets taken before the transition date are capitalized and depreciated over the remaining useful life of the
asset.
l) Research and Development Expenses
Revenue Expenditure on Research and Development is charged to Statement of Profit and loss in the year in
which it is incurred and capital expenditure is added to Property, Plant & Equipment.
m) Borrowing costs
Borrowing costs are interest and other costs (including exchange differences relating to foreign currency
borrowings to the extent that they are regarded as an adjustment to interest costs) incurred in connection with
the borrowing of funds. Borrowing costs directly attributable to acquisition or construction of an asset which
necessarily take a substantial period of time to get ready for their intended use are capitalised as part of the
cost of that asset. Other borrowing costs are recognised as an expense in the period in which they are incurred.
n) Income Tax
Income tax expense comprises current and deferred tax. It is recognised in profit or loss except to the extent
that it relates to items recognised directly in Other Comprehensive Income
i) Current tax
Current tax comprises the expected tax payable or receivable on the taxable income or loss for the year after
taking credit of the benefits available under the Income Tax Act and any adjustment to the tax payable or
receivable in respect of previous years. It is measured using tax rates enacted or substantively enacted at the
reporting date.
Current tax assets and liabilities are offset only if, the Company:
a) has a legally enforceable right to set off the recognised amounts; and
b) intends either to settle on a net basis, or to realise the asset and settle the liability simultaneously.
ii) Deferred tax
Deferred tax is recognised in respect of temporary differences between the carrying amounts of assets and
liabilities for financial reporting purposes and the corresponding tax bases used for taxation purposes.
Deferred tax is not recognised for:
- temporary differences on the initial recognition of assets or liabilities in a transaction that is not a business
combination and that affects neither accounting nor taxable profit or loss; and
- temporary differences related to investments in subsidiary to the extent that the Company is able to control
the timing of the reversal of the temporary differences and it is probable that they will not reverse in the
foreseeable future.
A deferred income tax asset is recognised to the extent that it is probable that future taxable profits will be
available against which deductible temporary differences and tax losses can be utilised. Deferred tax assets
are reviewed at each reporting date and are reduced to the extent that it is no longer probable that the related
tax benefit will be realised; such reductions are reversed when the probability of future taxable profits
improves.
Unrecognised deferred tax assets are reassessed at each reporting date and recognised to the extent that it
has become probable that future taxable profits will be available against which they can be used.
Deferred tax is measured at the tax rates that are expected to be applied to temporary differences when they
reverse, using tax rates enacted or substantively enacted at the reporting date. The measurement of deferred
tax reflects the tax consequences that would follow from the manner in which the Company expects, at the
reporting date, to recover or settle the carrying amount of its assets and liabilities.
For operations carried out in tax free units, deferred tax assets or liabilities, if any, have been recognised for the
tax consequences of those temporary differences between the carrying values of assets and liabilities and
their respective tax bases that reverse after the tax holiday ends.
Deferred tax assets and liabilities are offset only if:
a) The entity has a legally enforceable right to set off current tax assets against current tax liabilities; and
b) The deferred tax assets and the deferred tax liabilities relate to income taxes levied by the same taxation
authority on the same taxable entity.
Deferred tax assets include Minimum Alternative Tax (MAT) paid in accordance with the tax laws, which gives
rise to future economic benefits in the form of adjustment of future income tax liability, is considered as an
asset if there is probable evidence that the Company will pay normal income tax in future. Accordingly, MAT is
recognised as deferred tax asset in the Balance Sheet.
o) Segment Reporting
The accounting policies adopted for the segment reporting are in conformity with the accounting policies adopted
for the Company. Primary Segments are identified by the chief operational decision maker (CODM) based on the
nature of products and services, the different risks and returns and the internal business reporting system.
Revenue, Expense, Assets and Liabilities, which relate to the Company as a whole and could not be allocated to
segments on a reasonable basis, have been classified as unallocated. Secondary segment is identified based on
geography by location of customers i.e. in India and outside India.
Segment revenue includes sales and other income directly identifiable with / allocable to the segment including
intersegment transfers. Inter segment transfers are accounted for based on the transaction price agreed to
between the segments which is at cost in case of transfer of Company''s intermediate and final products and
estimated realisable value in case of by-products.
p) Cash and cash equivalents
Cash and cash equivalents comprise cash at bank and on hand and short-term deposits with original maturities of
three months or less that are readily convertible to known amounts of cash and which are subject to an insignificant
risk of changes in value.
q) Cash flow statement
Cash flow statements are prepared in accordance with âIndirect Methodâ as explained in the Accounting Standard
on Statement of Cash Flows (Ind AS - 7). The cash flows from regular revenue generating, financing and investing
activity of the Company are segregated.
r) Lease
The Company assesses at contract inception whether a contract is, or contains, a lease. That is, if the contract
conveys the right to control the use of an identified asset for a period of time in exchange for consideration.
Company as lessee
The Company''s lease asset classes primarily comprise of lease for land and building. The Company assesses
whether a contract contains a lease, at inception of a contract. A contract is, or contains, a lease if the contract
conveys the right to control the use of an identified asset for a period of time in exchange for consideration. To
assess whether a contract conveys the right to Control the use of an identified asset, the Company assesses
whether: (i) the contract involves the use of an identified asset (ii) the Company has substantially all of the economic
benefits from use of the asset through the period of the lease and (iii) the Company has the right to direct the use of
the asset.
The Company applies a single recognition and measurement approach for all leases, except for short-term leases
and leases of low-value assets. For these short-term and low value leases, the Company recognizes the lease
payments as an operating expense on a straight-line basis over the term of the lease. The Company recognises
lease liabilities to make lease payments and right-of-use assets representing the right to use the underlying assets
as below:.
i) Right-of-use assets
The Company recognises right-of-use assets at the commencement date of the lease (i.e., the date the
underlying asset is available for use). Right-of-use assets are measured at cost, less any accumulated
depreciation and impairment losses, and adjusted for any remeasurement of lease liabilities. The cost of right-
of-use assets includes the amount of lease liabilities recognised, initial direct costs incurred, and lease
payments made at or before the commencement date less any lease incentives received. Right-of-use assets
are depreciated on a straight-line basis over the shorter of the lease term and the estimated useful lives of the
underlying assets.
If ownership of the leased asset transfers to the Company at the end of the lease term or the cost reflects the
exercise of a purchase option, depreciation is calculated using the estimated useful life of the asset. The right-
of-use assets are also subject to impairment. Refer to the accounting policies in section âImpairment of non
financial assets''.
ii) Lease Liabilities
At the commencement date of the lease, the Company recognises lease liabilities measured at the present
value of lease payments to be made over the lease term. The lease payments include fixed payments (including
in substance fixed payments) less any lease incentives receivable, variable lease payments that depend on an
index or a rate, and amounts expected to be paid under residual value guarantees. The lease payments also
include the exercise price of a purchase option reasonably certain to be exercised by the Company and
payments of penalties for terminating the lease, if the lease term reflects the Company exercising the option to
terminate. Variable lease payments that do not depend on an index or a rate are recognised as expenses
(unless they are incurred to produce inventories) in the period in which the event or condition that triggers the
payment occurs.
In calculating the present value of lease payments, the Company uses its incremental borrowing rate at the
lease commencement date because the interest rate implicit in the lease is not readily determinable. After the
commencement date, the amount of lease liabilities is increased to reflect the accretion of interest and
reduced for the lease payments made. In addition, the carrying amount of lease liabilities is remeasured if
there is a modification, a change in the lease term, a change in the lease payments (e.g., changes to future
payments resulting from a change in an index or rate used to determine such lease payments) or a change in
the assessment of an option to purchase the underlying asset.
The Companyâs lease liabilities are included in other current and non-current financial liabilities (see Note 10c).
iii) Short-term leases and leases of low-value assets
The Company applies the short-term lease recognition exemption to its short-term leases (i.e., those leases that have
a lease term of 12 months or less from the commencement date and do not contain a purchase option). It also
applies the lease of low-value assets recognition exemption to leases that are considered to be low value. Lease
payments on short-term leases and leases of low-value assets are recognised as expense on a straight-line basis
over the lease term.
"Lease liability" and "Right of Use" asset have been separately presented in the Balance Sheet and lease payments
have been classified as financing cash flows.
s) Earning per share
Basic earnings per share is calculated by dividing the net profit or loss for the period attributable to Equity Shareholders by
the weighted average number of equity shares outstanding during the period.
For the purpose of calculating diluted Earning per Share, the net profit or loss for the period attributable to Equity
Shareholders and the weighted average number of shares outstanding during the period are adjusted for the effects of
all dilutive potential equity shares.
t) Discontinued Operations and Non-current Assets Held for Sale
The Company classifies non-current assets (or disposal groups) as held for sale if their carrying amount will be recovered
principally through a sale transaction rather than through continuing use. Assets and liabilities classified as held for sale
are measured at the lower of carrying amount and fair value less costs to sell. Discontinued operations are presented
separately in the Statement of Profit and Loss, and prior period figures are restated where applicable, in line with Ind AS
105.
(ii) Capital Redemption Reserve:
An amount of Rs. 30.60 Lakhs (equivalent to nominal value of the equity shares bought back and cancelled by the Company in
the year ended March 2019) has been transferred to Capital Redemption Reserve from General Reserve pursuant to the
provisions of Section 69 of the Companies Act, 2013 and article 8 of the Articles of Association of the Company.
(iii) General Reserve
General reserve represents the statutory reserve. In accordance with the erstwhile Companies Act 1956, it was mandatory to
apportion a part of the Profit to the General Reserve before declaring Dividend. However under Companies Act , 2013, transfer
of any amount to general reserve is at the discretion of the Company.
(iv) Retained Earnings
Retained earnings represents undistributed profits of the Company which can be distributed to its equity shareholders in
accordance with the provisions of the Companies Act, 2013.
(v) During the year, the Company has paid Interim dividend of Rs. Nil; (Previous year Rs. 7.00) per equity share. Now, final dividend
of Rs. Nil (Previous year Rs. 7.00) per equity share for financial year 2024-25.
23 DISCONTINUED OPERATIONS
The Scheme of Arrangement as approved by the Board of Directors at its meeting held on May 22'' 2022 for the demerger of the
Chemical business undertaking of the Company (''Demerged Company'') into OCCL Limited (''Resulting Company'') on a going
concern basis has received requisite approval from National Company Law Tribunal (''NCLT'') vide its order dated April 10'' 2024.
In terms of the NCLT Order, the Honâble NCLT had suo motu amended the said Appointed Date to be the date of pronouncement
of the NCLT Order i.e. April 10'' 2024. The Company had filed an Appeal before the Honâble National Company Law Appellate
Tribunal, New Delhi Bench (âNCLATâ). The Honâble NCLAT vide its order dated May 27'' 2024 allowed the said Appeal and has
held that the Appointed Date of the Scheme is the Effective Date as mentioned in the Scheme. Respective companies have
filed the certified true copy of NCLT and NCLAT orders along with the sanctioned scheme with the Registrar of Companies on
July 01'' 2024. Accordingly, the appointed date and the effective date of the scheme is July 01'' 2024.
The Company has accordingly charged the difference between carrying value of assets and liabilities amounting to Rs.
37,494.57 Lakhs (Loss) in the statement of profit and loss account as ""Exceptional Items - Profit/(Loss)"" in compliance with
IND AS 105, Non-current Assets Held for Sale and Discontinued Operations. The carrying value of assets of Rs.56,734.98
Lakhs and liabilities of Rs. 19,240.41 Lakhs related to Manufacturing business of Insoluble Sulphur & Chemicals is carried as
assets held for sale in financials as on June 30'' 2024. Further, upon the scheme becoming effective, the investment made by
the demerged company in resulting company shall stand cancelled.
As consideration for demerger, the resulting company will issue its equity shares to each shareholder of the demerged
company as on record date in the ratio of 1:1 (i.e. 5 shares of Rs. 2 each will be issued by the resulting company for every one
share of Rs. 10 each of demerged company).
The net results of Manufacturing business of Insoluble Sulphur & Chemicals for comparative quarters/periods are disclosed
separately as discontinued operations as required by IND As 105."
24 RESTATEMENT OF FINANCIAL STATEMENTS
Subsequent to demerger as referred in note no. 23 above , the company has restated its Financial Statements for the year
ended March 31, 2024 to disclose true and fair view of financials in accordance with Ind AS 8 (Accounting Policies, Changes in
Accounting Estimates and Errors). Thus, fair value gains and losses from some Equity / AIF investments earlier measured as at
Fair Value through Other Comprehensive income (FVTOCI) is reclassified to Fair Value through Profit or Loss (FVTPL), as
outlined in Ind AS 109. These adjustments have impacted the financial statements for the year ended March 31, 2024 and
March 31, 2025. Due to above re-statement there is a shift of reserves from OCI to retained earnings. However, overall the
reserves remain same. This restatement did not have any impact on the balance sheet. The impact of the restatement for the
year presented along with the impact on Earnings per Share is tabulated below:
25 EMPLOYEE BENEFITS
The Company participates in defined contribution and benefit schemes, the assets of which are held (where funded) in
separately administered funds. For defined contribution schemes the amount charged to the statements of profit or loss is the
total of contributions payable in the year.
a) Defined Contribution Plans
Amount recognized as an expense and included in Note No. 16 Item "Contribution to Provident and Other Funds" Rs. 8.64
Lakh (Previous year Rs.7.05 Lakh)
b) Other long-term benefits
Amount recognized as an expense and included in Note No. 16 Item "Long Term Compensated Absences" Rs. 11.66 Lakh
(Previous year Rs. 0.38 Lakh).
c) Defined benefits plans - as per actuarial valuation
Gratuity Expense Rs. (18.08) Lakh (Previous year Rs. 3.52 Lakh) has been recognized in "Gratuity" under Note No. 16 as
per Actuarial Valuation.
XII. Description of Risk Exposures:
Valuations are based on certain assumptions, which are dynamic in nature and vary over time. As such company is exposed to
various risks as follow -
a) Salary Increases- Actual salary increases will increase the Planâs liability. Increase in salary increase rate assumption in
future valuations will also increase the liability.
b) Investment Risk - If Plan is funded then assets liabilities mismatch & actual investment return on assets lower than the
discount rate assumed at the last valuation date can impact the liability.
c) Discount Rate - Reduction in discount rate in subsequent valuations can increase the planâs liability.
d) Mortality & disability - Actual deaths & disability cases proving lower or higher than assumed in the valuation can impact
the liabilities.
e) Withdrawals - Actual withdrawals proving higher or lower than assumed withdrawals and change of withdrawal rates at
subsequent valuations can impact Planâs liability.
The fair value of cash and cash equivalents, other bank balances, trade receivables, short term loans, current financial assets,
trade payables, current financial liabilities and borrowings at their carrying amount.
Fair value hierarchy
The table shown above analysis financial instruments carried at fair value, by valuation method. The different levels have been
defined below:
Level 1 This includes financial instruments measured using quoted prices.
Level 2 The fair value of financial instruments that are not traded in an active market is determined using valuation techniques
which maximise the use of observable market data and rely as little as possible on entity-specific estimates.
Level 3 If one or more of the significant inputs is not based on observable market data, the instrument is included in level 3. There
are no transfers between level 1, level 2 and level 3 during the year.
Valuation technique used to determine fair value:
Specific valuation techniques used to value financial instruments include:
The use of quoted market prices.
As per Para D-15 of Appendix D of Ind AS 101, Company has opted to value its investment in Subsidiaries at Cost.
The fair values for security deposits (assets & liabilities) were based on their carrying values.
30 FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES
A Financial risk factors
The Company is exposed to various financial risks i.e. market risk, credit risk and risk of liquidity. These risks are inherent and
integral aspect of any business. The primary focus of the Risk Management Policy is to foresee the unpredictability of financial
markets and seek to minimize potential adverse effects on its financial performance. The primary market risk consists of
foreign exchange risk and interest rate risk. The Company calculates and compares the various proposals of funding by
including cost of currency hedging also. The Company uses derivative financial instruments (Forward Covers) to reduce foreign
exchange risk exposures.
i. Credit risk
The Company evaluates the customer credentials carefully from trade sources before extending credit terms and credit
terms are extended to only financially sound customers. The Company secures adequate advance from its customers
whenever necessary and hence risk of bad debt is limited. The credit outstanding is sought to be limited to the sum of
advances and credit limit determined by the Company. The Company have stop supply mechanism in place in case
outstanding goes beyond agreed limits.
ii Market Risk
Market risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of fluctuation
in market prices. These comprise three types of risk i.e. currency rate , interest rate and other price related risks. Financial
instruments affected by market risk include loans and borrowings, deposits, investments, and derivative financial
instruments. Foreign currency risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate
because of changes in foreign exchange rates. Interest rate risk is the risk that the fair value or future cash flows of a
financial instrument will fluctuate because of changes in market interest rates. Regular interaction with bankers,
intermediaries and the market participants help us to mitigate such risk.
a) Foreign Currency risk
The primary market risk to the Company is foreign exchange risk. The Company uses derivative financial instruments
to reduce foreign exchange risk exposures and follows its risk management policies to mitigate the same. After taking
cognisance of the natural hedge, the company takes appropriate hedges to mitigate its risk resulting from
fluctuations in foreign currency exchange rate(s).
b) Interest Rate Risk and Sensitivity
The Company''s exposure to the risk of changes in market interest rates relates primarily to long term debt. Borrowings
at variable rates expose the Company to cash flow interest rate risk.
iii Liquidity risk
Liquidity risk arises when the Company will not be able to meet its present and future cash and collateral obligations. The
risk management action focuses on the unpredictability of financial markets and tries to minimise adverse effects. The
Company uses derivative financial instruments to hedge risk exposures. The Companyâs approach is to ensure, as far as
possible, that it will have sufficient liquidity to meet its liabilities when due and company monitors rolling forecasts of its
liquidity requirements.
iv Commodity Price Risk
The company is exposed to commodity price risk due to fluctuations in prices, which directly impact its bullion sales and
delivery operations through banks on the Multi Commodity Exchange (MCX). To manage this risk, the company employs
prudent inventory and pricing strategies, including real-time price monitoring and alignment of procurement with sales
commitments. Moreover, transactions are typically structured with price lock-in or hedging mechanisms on MCX to
minimize exposure to adverse price movements. In many cases, pricing arrangements with banking partners allow for
pass-through of gold price changes, thereby mitigating the impact of volatility on the companyâs margins and financial
performance.
B Capital Risk Management
The Company''s Policy is to maintain an adequate capital base so as to maintain creditor and market confidence and to sustain
future development. Capital includes issued capital, share premium and all other equity reserves attributable to equity
holders. In order to strengthen the capital base, the Company may use appropriate means to enhance or reduce capital, as the
case may be.
"Note:
* Reason - For Change in Net capital Turnover Ratio is Sale of Current Investments during the year and transfer of current
invetsment to OCCL Limited (Resulting Company).
** Reason - During the year, there is reduction in Gain from liquid investments leading to reduced Net Profit. Additionally,
company has routed funds towards Income from Commodity Trading which has yielded low profits.
*** Pursuant to the scheme of demerger the chemical business of the Company was transferred to the resulting Company (OCCL
Ltd.), details of assets held for sale were not available for year ended March 2023, Thus, these ratios were presented as per
March 24 signed financials.
A Pursuant to the scheme of demerger the chemical business of the Company was transferred to the resulting Company (OCCL
Ltd.), some ratios as given above were not applicable.
35 Monthly statements/returns filled by the Company with banks or financial institutions are in agreement with books of
accounts.
36 The figures for the corresponding year have been regrouped / reclassified wherever necessary, to make them comparable.
37 (a) OTHER STATUTORY INFORMATION
(i) The Company has no transactions with the companies Struck off under section 248 of the Companies Act, 2013 or
section 560 of the Companies Act, 1956 during the financial year ended March 31, 2025.
(ii) The Company has not traded or invested in Crypto currency or Virtual Currency during the current and in previous
financial period.
(iii) The Company is not a Core Investment Company (CIC) as defined in the regulations made by the Reserve Bank of India.
(iv) There are no proceedings which have been initiated or pending against the Company for holding any benami property
under the Prohibition of Benami Properties Transactions Act, 1988 and rules made thereunder.
(v) The Company is not declared wilful defaulter by any bank or financial institution or Government or any Government
authority in current periods and in previous financial period.
(vi) The Company has complied with clause (87) of section 2 of the Companies Act, 2013 read with Companies (Restriction
on number of Layers) Rules, 2017.
37 (b) Details of Transfer to Investor Education and Protection Fund (IEPF)
There have been delays in transferring the following amounts, which were required to be credited to the Investor
Education and Protection Fund (IEPF) in accordance with the provisions of the Companies Act, 2013:
The delay in deposit of unclaimed dividend was mainly due to glitch in the MCA portal. The Company has subsequently transferred
all the above amounts to the IEPF.
37 (c) The Company is engaged in a single business segment and operates in a single geographical segment. Accordingly,
no separate segment information is required to be disclosed as per Ind AS 108 - Operating Segments.
38 The company has availed overdraft facility from HDFC Bank against Liquid Investments (Mutual Funds). [Refer Note no. 4]
As per our Report of even date attached For and on behalf of the Board of Directors of
ORIENTAL CARBON & CHEMICALS LIMITED
For S S Kothari Mehta & Co. LLP
Chartered Accountants Arvind Goenka Abhinaya Kumar
Firm Reg. No. 000756N/N500441 Chairman Chief Executive Officer
DIN-00135653 Place : Noida
Place : Noida
Deepak K. Aggarwal Vipin Aman Abhishek
Partner Company Secretary Chief Financial Officer
Membership No. 095541 Membership No. A55308 Place : Noida
Place : Noida
Place : Noida
Date : 28/05/2025
Mar 31, 2024
g) Provisions, Contingent Liabilities and Contingent Assets Provision
Provisions are recognized when the Company has a present obligation (legal or constructive) as a result of a past event and it is probable that the outflow of resources embodying economic benefits will be required to settled the obligation in respect of which reliable estimate can be made of the amount of the obligation. When the Company expects some or all of a provision to be reimbursed, the expense relating to provision presented in the statement of profit & loss is net of any reimbursement.
If the effect of the time value of money is material, provisions are disclosed using a current pre-tax rate that reflects, when appropriate, the risk specific to the liability. When discounting is used, the increase in the provision due to the passage of time is recognized as finance cost.
Contingent liability is disclosed in the notes in case of:
There is a possible obligation arising from past events, the existence of which will be confirmed only by the occurrence or nonoccurrence of one or more uncertain future events not wholly within the control of the Company.
¦ A present obligation arising from past event, when it is not probable that as outflow of resources will be required to settle the obligation
¦ A present obligation arises from the past event, when no reliable estimate is possible
¦ A present obligation arises from the past event, unless the probability of outflow are remote.
Commitments include the amount of purchase order (net of advances) issued to parties for completion of assets.
Provisions, contingent liabilities, contingent assets and commitments are reviewed at each balance sheet date.
Onerous Contracts
A provision for onerous contracts is measured at the lower of the present value of expected cost of terminating the contract and the expected cost of continuing with the contract. Before a provision is established, the company recognizes the impairment on the assets, if any, with the contract.
Contingent assets :
Contingent assets are not accounted in the financial statements unless an inflow of economic benefits is probable.
h) Revenue from Operations:
(i) Revenue from Contracts with Customers
The Company derives revenue from sale of Insoluble Sulphur, Sulphuric Acid and Oleum.
Ind AS 115 "Revenue from Contracts with Customers" provides a control-based revenue recognition model and provides a five step application approach to be followed for revenue recognition.
¦ Identify the contract(s) with a customer;
¦ Identify the performance obligations;
¦ Determine the transaction price;
¦ Allocate the transaction price to the performance obligations;
¦ Recognise revenue when or as an entity satisfies performance obligation.
Revenue from contracts with customers is recognised when control of the goods or services are transferred to the customer at an amount that reflects the consideration to which the Company expects to be entitled in exchange for those goods or services net of discounts, rebates or schemes, if any, offered by the company. The Company has generally concluded that it is the principal in its revenue arrangements.
The disclosures of significant accounting judgements, estimates and assumptions relating to revenue from contracts with customers are provided in Note 15.
Sale of Goods
For sale of goods, revenue is recognised on satisfaction of performance obligation upon transfer of control of promised products to customers at an amount that reflects the consideration the Company expects to receive in exchange for those products.
(ii) Export Benefits
In case of direct exports made by the Company, export benefits arising from Govt. incentives and schemes are recognised on shipment of direct exports.
(iii) Investment Income
Investment income is recognised as and when accrued/reinstated as per the terms of the Investments based on the effective interest rate/appreciation(depreciation) in value of investment as applicable on the basis of quoted price/ statements received from the relevant funds/institutions as applicable. Income from Investments including interest income is included in revenue from operations in the statement of Profit and Loss.
Dividend income is recognised when the Company''s right to receive dividend is established, and is included in other income in the statement of profit and loss.
i) Other Revenue Streams Interest Income
Interest income is accrued on a time basis, by reference to the principal outstanding and at the effective interest rate applicable, which is the rate that exactly discounts estimated future cash receipts through the expected life of the financial asset to the asset''s net carrying amount on initial recognition. Interest income is included in other income in the statement of profit and loss.
j) Employee Benefits
i) Short term employee benefits
Short-term employee benefits in respect of salaries and wages, including non-monetary benefits are recognised as an expense at the undiscounted amount in the statement of profit and loss for the year in which the related service is rendered
ii) Defined contribution plans
Employees benefits in the form of the Company''s contribution to Provident Fund, Pension scheme, Superannuation Fund and Employees State Insurance are defined contribution schemes. The Company recognises contribution payable to these schemes as an expense, when an employee renders the related service.
If the contribution payable exceeds contribution already paid, the deficit payable is recognised as a liability (accrued expense), after deducting any contribution already paid. If the contribution already paid exceeds the contribution due for service before the end of the reporting period, the Company recognise that excess as an asset (prepaid expense) to the extent that the prepayment will lead to, for example, a reduction in future payments or a cash refund.
iii) Defined benefit plans
Retirement benefits in the form of gratuity are considered as defined benefit plans. The Company''s net obligation in respect of defined benefit plans is calculated by estimating the amount of future benefit that employees have earned in the current and prior periods, discounting that amount and deducting the fair value of any plan assets.
The Company provides for its gratuity liability based on actuarial valuation of the gratuity liability as at the Balance Sheet date, based on Projected Unit Credit Method, carried out by an independent actuary. The Company contributes to the gratuity fund, which are recognised as plan assets. The defined benefit obligation as reduced by fair value of plan assets is recognised in the Balance Sheet.
When the calculation results in a potential asset for the company, the recognised asset is limited to the present value of economic benefits available in the form of any future refunds from the plan or reductions in future contributions to the plan. To calculate the present value of economic benefits, consideration is given to any applicable minimum funding requirements.
Remeasurement of the net defined benefit liability, which comprise actuarial gains and losses, the return on plan assets (excluding interest) and the effect of the asset ceiling (if any, excluding interest), are recognised immediately in Other Comprehensive Income. Net interest expense (income) on the net defined liability (assets) is computed by applying the discount rate, used to measure the net defined liability (asset), to the net defined liability (asset) at the start of the financial year after taking into account any changes as a result of contribution and benefit payments during the year. Net interest expense and other expenses related to defined benefit plans are recognised in profit or loss.
When the benefits of a plan are changed or when a plan is curtailed, the resulting change in benefit that relates to past service or the gain or loss on curtailment is recognised immediately in profit or loss. The Company recognises gains and losses on the settlement of a defined benefit plan when the settlement occurs.
iv) Other long-term employee benefits
Employee benefits in the form of long term compensated absences are considered as long term employee benefits. The Company''s net obligation in respect of long-term employee benefits is the amount of future benefit that employees have earned in return for their service in the current and prior periods. That benefit is discounted to determine its present value. Remeasurement are recognised in profit or loss in the period in which they arise.
The liability for long term compensated absences are provided based on actuarial valuation as at the Balance Sheet date, based on Projected Unit Credit Method, carried out by an independent actuary.
k) Foreign currency transactions Initial recognition:
Transactions in foreign currencies are translated into the Company''s functional currency at the exchange rates at the dates of the transactions.
Conversion:
Monetary assets and liabilities denominated in foreign currencies are translated into the functional currency at the exchange rate at the reporting date. Non-monetary assets and liabilities that are measured at fair value in a foreign currency are translated into the functional currency at the exchange rate when the fair value was determined. Non-monetary assets and liabilities that are measured based on historical cost in a foreign currency are translated at the exchange rate at the date of the transaction.
Exchange difference:
Exchange differences are recognised in Statement of profit & loss. In accordance with Ind-AS 101 ''First Time Adoption of Indian Accounting Standards'', the Company has continued the policy of capitalisation of exchange differences on foreign currency loans taken before the transition date. Accordingly, exchange differences arising on translation of long term foreign currency monetary items relating to acquisition of depreciable fixed assets taken before the transition date are capitalized and depreciated over the remaining useful life of the asset.
l) Research and Development Expenses
Revenue Expenditure on Research and Development is charged to Statement of Profit and loss in the year in which it is incurred and capital expenditure is added to Property, Plant & Equipment.
m) Borrowing costs
Borrowing costs are interest and other costs (including exchange differences relating to foreign currency borrowings to the extent that they are regarded as an adjustment to interest costs) incurred in connection with the borrowing of funds. Borrowing costs directly attributable to acquisition or construction of an asset which necessarily take a substantial period of time to get ready for their intended use are capitalised as part of the cost of that asset. Other borrowing costs are recognised as an expense in the period in which they are incurred.
n) Income Tax
Income tax expense comprises current and deferred tax. It is recognised in profit or loss except to the extent that it relates to items recognised directly in Other Comprehensive Income
i) Current tax
Current tax comprises the expected tax payable or receivable on the taxable income or loss for the year after taking credit of the benefits available under the Income Tax Act and any adjustment to the tax payable or receivable in respect of previous years. It is measured using tax rates enacted or substantively enacted at the reporting date.
Current tax assets and liabilities are offset only if, the Company:
a) has a legally enforceable right to set off the recognised amounts; and
b) intends either to settle on a net basis, or to realise the asset and settle the liability simultaneously.
ii) Deferred tax
Deferred tax is recognised in respect of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the corresponding tax bases used for taxation purposes. Deferred tax is not recognised for:
- temporary differences on the initial recognition of assets or liabilities in a transaction that is not a business combination and that affects neither accounting nor taxable profit or loss; and
- temporary differences related to investments in subsidiary to the extent that the Company is able to control the timing of the reversal of the temporary differences and it is probable that they will not reverse in the foreseeable future.
A deferred income tax asset is recognised to the extent that it is probable that future taxable profits will be available against which deductible temporary differences and tax losses can be utilised. Deferred tax assets are reviewed at each reporting date and are reduced to the extent that it is no longer probable that the related tax benefit will be realised; such reductions are reversed when the probability of future taxable profits improves.
Unrecognised deferred tax assets are reassessed at each reporting date and recognised to the extent that it has become probable that future taxable profits will be available against which they can be used.
Deferred tax is measured at the tax rates that are expected to be applied to temporary differences when they reverse, using tax rates enacted or substantively enacted at the reporting date. The measurement of deferred tax reflects the tax consequences that would follow from the manner in which the Company expects, at the reporting date, to recover or settle the carrying amount of its assets and liabilities.
For operations carried out in tax free units, deferred tax assets or liabilities, if any, have been recognised for the tax consequences of those temporary differences between the carrying values of assets and liabilities and their respective tax bases that reverse after the tax holiday ends.
Deferred tax assets and liabilities are offset only if:
a) The entity has a legally enforceable right to set off current tax assets against current tax liabilities; and
b) The deferred tax assets and the deferred tax liabilities relate to income taxes levied by the same taxation authority on the same taxable entity.
Deferred tax assets include Minimum Alternative Tax (MAT) paid in accordance with the tax laws, which gives rise to future economic benefits in the form of adjustment of future income tax liability, is considered as an asset if there is probable evidence that the Company will pay normal income tax in future. Accordingly, MAT is recognised as deferred tax asset in the Balance Sheet.
o) Segment Reporting
The accounting policies adopted for the segment reporting are in conformity with the accounting policies adopted for the Company. Primary Segments are identified by the chief operational decision maker (CODM) based on the nature of products and services, the different risks and returns and the internal business reporting system. Revenue, Expense, Assets and Liabilities,
which relate to the Company as a whole and could not be allocated to segments on a reasonable basis, have been classified as unallocated. Secondary segment is identified based on geography by location of customers i.e. in India and outside India.
Segment revenue includes sales and other income directly identifiable with / allocable to the segment including intersegment transfers. Inter segment transfers are accounted for based on the transaction price agreed to between the segments which is at cost in case of transfer of Company''s intermediate and final products and estimated realisable value in case of by-products.
p) Cash and cash equivalents
Cash and cash equivalents comprise cash at bank and on hand and short-term deposits with original maturities of three months or less that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value.
q) Cash flow statement
Cash flow statements are prepared in accordance with "Indirect Method" as explained in the Accounting Standard on Statement of Cash Flows (Ind AS - 7). The cash flows from regular revenue generating, financing and investing activity of the Company are segregated.
r) Lease
The Company assesses at contract inception whether a contract is, or contains, a lease. That is, if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration.
Company as lessee
The Company''s lease asset classes primarily comprise of lease for land and building. The Company assesses whether a contract contains a lease, at inception of a contract. A contract is, or contains, a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. To assess whether a contract conveys the right to Control the use of an identified asset, the Company assesses whether: (i) the contract involves the use of an identified asset (ii) the Company has substantially all of the economic benefits from use of the asset through the period of the lease and (iii) the Company has the right to direct the use of the asset.
The Company applies a single recognition and measurement approach for all leases, except for short-term leases and leases of low-value assets. For these short-term and low value leases, the Company recognizes the lease payments as an operating expense on a straight-line basis over the term of the lease. The Company recognises lease liabilities to make lease payments and right-of-use assets representing the right to use the underlying assets as below:.
i) Right-of-use assets
The Company recognises right-of-use assets at the commencement date of the lease (i.e., the date the underlying asset is available for use). Right-of-use assets are measured at cost, less any accumulated depreciation and impairment losses, and adjusted for any remeasurement of lease liabilities. The cost of right-of-use assets includes the amount of lease liabilities recognised, initial direct costs incurred, and lease payments made at or before the commencement date less any lease incentives received. Right-of-use assets are depreciated on a straight-line basis over the shorter of the lease term and the estimated useful lives of the underlying assets.
If ownership of the leased asset transfers to the Company at the end of the lease term or the cost reflects the exercise of a purchase option, depreciation is calculated using the estimated useful life of the asset. The right-of-use assets are also subject to impairment. Refer to the accounting policies in section ''Impairment of non financial assets''.
ii) Lease Liabilities
At the commencement date of the lease, the Company recognises lease liabilities measured at the present value of lease payments to be made over the lease term. The lease payments include fixed payments (including in substance fixed payments) less any lease incentives receivable, variable lease payments that depend on an index or a rate, and amounts expected to be paid under residual value guarantees. The lease payments also include the exercise price of a purchase option reasonably certain to be exercised by the Company and payments of penalties for terminating the lease, if the lease term reflects the Company exercising the option to terminate. Variable lease payments that do not depend on an index or a rate are recognised as expenses (unless they are incurred to produce inventories) in the period in which the event or condition that triggers the payment occurs.
In calculating the present value of lease payments, the Company uses its incremental borrowing rate at the lease commencement date because the interest rate implicit in the lease is not readily determinable. After the commencement date, the amount of lease liabilities is increased to reflect the accretion of interest and reduced for the lease payments made. In addition, the carrying amount of lease liabilities is remeasured if there is a modification, a change in the lease term, a change in the lease payments (e.g., changes to future payments resulting from a change in an index or rate used to determine such lease payments) or a change in the assessment of an option to purchase the underlying asset.
The Company''s lease liabilities are included in other current and non-current financial liabilities (see Note 10c).
iii) Short-term leases and leases of low-value assets
The Company applies the short-term lease recognition exemption to its short-term leases (i.e., those leases that have a lease term of 12 months or less from the commencement date and do not contain a purchase option). It also applies the lease of low-value assets recognition exemption to leases that are considered to be low value. Lease payments on shortterm leases and leases of low-value assets are recognised as expense on a straight-line basis over the lease term.
"Lease liability" and "Right of Use" asset have been separately presented in the Balance Sheet and lease payments have been classified as financing cash flows.
s) Scheme of Arrangement
The Board of Directors of the Company, approved the Scheme of Arrangement between the Company and OCCL Limited (Wholly Owned Subsidiary of the Company), wherein the Chemical business will be demerged from the Company to OCCL Ltd (The Scheme). The Scheme got all the requisite approvals including from shareholders, secured and unsecured creditors. Further, the Hon''ble National Company Law Tribunal, Ahmedabad Bench ("Hon''ble Tribunal") vide its order dated 10 April 2024 has sanctioned the Scheme ("NCLT Order"). As per the Scheme the Appointed Date is the Effective Date. However, in the NCLT Order, the Hon''ble Tribunal has suo-motu amended the said Appointed Date to be the date of pronouncement of the NCLT Order i.e. 10 April 2024. After due consideration of the aforesaid NCLT Order, the Management has filed an appeal against the NCLT order before National Company Law Appellate Tribunal (NCLAT) to fix the appointed date as per the original scheme and an Interim stay petition on the operation of NCLT Order. The NCLAT has since granted a stay on the operation of the order with regard to the appointed date. The scheme will be given effect to in the financial results of the Company on the effective date as per the order of NCLAT.
t) Earning per share
Basic earnings per share is calculated by dividing the net profit or loss for the period attributable to Equity Shareholders by the weighted average number of equity shares outstanding during the period.
For the purpose of calculating diluted Earning per Share, the net profit or loss for the period attributable to Equity Shareholders and the weighted average number of shares outstanding during the period are adjusted for the effects of all dilutive potential equity shares.
Notes:
(i) Capital Reserve:
The Company had recognised Surplus arising out of transfer of Assets and Liabilities of erstwhile Carbon Black Division to Capital Reserve. Company had 33752 forfeited equity shares of face value of H10 each in previous year due to non payment of call money by the shareholders.
(ii) Capital Redemption Reserve:
An amount of H30.60 Lakh (equivalent to nominal value of the equity shares bought back and cancelled by the Company in the year ended March 2019) has been transferred to Capital Redemption Reserve from General Reserve pursuant to the provisions of Section 69 of the Companies Act, 2013 and article 8 of the Articles of Association of the Company.
(iii) General Reserve
General reserve represents the statutory reserve. In accordance with the erstwhile Companies Act 1956, it was mandatory to apportion a part of the Profit to the General Reserve before declaring Dividend. However under Companies Act , 2013, transfer of any amount to general reserve is at the discretion of the Company.
(iv) Retained Earnings
Retained earnings represents undistributed profits of the Company which can be distributed to its equity shareholders in accordance with the provisions of the Companies Act, 2013.
(v) Items of Other Comprehensive Income
The Company recognises the gain or (loss) on fair value of non-current investments under Items of Other Comprehensive Income. Realised gain on sale of equity instrument of H(20.98) Lakh (Previous Year H Nil) (Net of tax) during the year transferred to retained earning from other comprehensive income as per IND AS 109.
(vi) During the year, the Company has paid Interim dividend of H7.00; (Previous year H7.00) per equity share. Now, final dividend of H7.00 (Previous year H7.00) per equity share for financial year 2023-24 is recommended by the Board of Directors, which is subject to the approval of the shareholders in the ensuing Annual General Meeting.
Notes:
(i) (a) Securities:
Secured by (i) H Nil (Previous year H157.49 Lakh), First pari-passu charge on Property, Plant and Equipment including equitable mortgage of factory land and building at SEZ Mundra and Dharuhera Units; Second pari-passu charge on entire current assets of the Company; (ii) H Nil (Previous year H 141.01 Lakh) , First pari-passu charge on Property, Plant and Equipment including equitable mortgage of factory land and building at SEZ Mundra Unit; Second pari-passu charge on entire Property, Plant and Equipment of Dharuhera Unit including equitable mortgage of factory land and building of Dharuhera Unit; Second pari-passu charge on entire current assets of the Company; (iii) H Nil (Previous year H211.60 Lakh), First pari-passu charge on entire Property, Plant and Equipment including equitable mortgage of factory land and building of SEZ Mundra Unit; (iv) H4,739.66 Lakh (Previous year H6,809.73 Lakh), First pari-passu charge on entire Property, Plant and Equipment including equitable mortgage of factory land and building at Dharuhera and SEZ Mundra Unit; Second pari-passu charge on entire current assets of the Company.
27 EMPLOYEE BENEFITS
The Company participates in defined contribution and benefit schemes, the assets of which are held (where funded) in separately administered funds. For defined contribution schemes the amount charged to the statements of profit or loss is the total of contributions payable in the year.
a) Defined Contribution Plans
Amount recognized as an expense and included in Note No. 19 Item "Contribution to Provident and Other Funds" H229.69 Lakh (Previous year H196.47 Lakh)
b) Other long-term benefits
Amount recognized as an expense and included in Note No. 19 Item "Long Term Compensated Absences" H85.24 Lakh (Previous year H79.42 Lakh) includes H55.45 Lakh (Previous Year H59.08 Lakh) on account of Actuarial valuation.
c) Defined benefits plans - as per actuarial valuation
Gratuity Expense H66.59 Lakh (Previous year H58.67 Lakh) has been recognized in "Gratuity" under Note No. 19 as per Actuarial
27 EMPLOYEE BENEFITS (Contd.)
XII. Description of Risk Exposures:
Valuations are based on certain assumptions, which are dynamic in nature and vary over time. As such company is exposed to
various risks as follow -
a) Salary Increases- Actual salary increases will increase the Plan''s liability. Increase in salary increase rate assumption in future valuations will also increase the liability.
b) Investment Risk - If Plan is funded then assets liabilities mismatch & actual investment return on assets lower than the discount rate assumed at the last valuation date can impact the liability.
c) Discount Rate - Reduction in discount rate in subsequent valuations can increase the plan''s liability.
d) Mortality & disability - Actual deaths & disability cases proving lower or higher than assumed in the valuation can impact the liabilities.
e) Withdrawals - Actual withdrawals proving higher or lower than assumed withdrawals and change of withdrawal rates at subsequent valuations can impact Plan''s liability.
Notes:
(i) The Company is organised into two main business segments, namely;
- Chemicals
- Investments
Segments have been identified and reported taking into account, the nature of products, the differing risks and returns, the organisation structure, and the internal financial reporting systems.
(ii) The segment revenue in the geographical segments considered for disclosure are as follows:
(a) Revenue within India includes sales to customers and investment income in India.
(b) Revenue outside India includes sales to customers located outside India and earnings outside India and export incentives/ benefits.
(iii) Segment Revenue, Results, Assets and Liabilities include the respective amounts identifiable to each of the segments and amounts allocated on a reasonable basis.
32 FINANCIAL INSTRUMENTS (Contd.)
Fair value hierarchy
The table shown above analysis financial instruments carried at fair value, by valuation method. The different levels have been defined
below:
Level 1 This includes financial instruments measured using quoted prices.
Level 2 The fair value of financial instruments that are not traded in an active market is determined using valuation techniques which maximise the use of observable market data and rely as little as possible on entity-specific estimates.
Level 3 If one or more of the significant inputs is not based on observable market data, the instrument is included in level 3. There are no transfers between level 1, level 2 and level 3 during the year.
Valuation technique used to determine fair value:
Specific valuation techniques used to value financial instruments include:
The use of quoted market prices.
The fair value of forward foreign exchange contracts is determined using forward exchange rates at the balance sheet date (Mark to
Market).
As per Para D-15 of Appendix D of Ind AS 101, Company has opted to value its investment in Subsidiaries at Cost.
The fair values for security deposits (assets & liabilities) were based on their carrying values.
33 FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES
A Financial risk factors
The Company is exposed to various financial risks i.e. market risk, credit risk and risk of liquidity. These risks are inherent and integral aspect of any business. The primary focus of the Risk Management Policy is to foresee the unpredictability of financial markets and seek to minimize potential adverse effects on its financial performance. The primary market risk consists of foreign exchange risk and interest rate risk. The Company calculates and compares the various proposals of funding by including cost of currency hedging also. The Company uses derivative financial instruments (Forward Covers) to reduce foreign exchange risk exposures.
i. Credit risk
The Company evaluates the customer credentials carefully from trade sources before extending credit terms and credit terms are extended to only financially sound customers. The Company secures adequate advance from its customers whenever necessary and hence risk of bad debt is limited. The credit outstanding is sought to be limited to the sum of advances and credit limit determined by the Company. The Company have stop supply mechanism in place in case outstanding goes beyond agreed limits.
ii Market Risk
Market risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of fluctuation in market prices. These comprise three types of risk i.e. currency rate , interest rate and other price related risks. Financial instruments affected by market risk include loans and borrowings, deposits, investments, and derivative financial instruments. Foreign currency risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in foreign exchange rates. Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. Regular interaction with bankers, intermediaries and the market participants help us to mitigate such risk.
a) Foreign Currency risk
The primary market risk to the Company is foreign exchange risk. The Company uses derivative financial instruments to reduce foreign exchange risk exposures and follows its risk management policies to mitigate the same. After taking cognisance of the natural hedge, the company takes appropriate hedges to mitigate its risk resulting from fluctuations in foreign currency exchange rate(s).
39 NOTE ON DEMERGER
The Board of Directors of the Company at their meeting held on May 24, 2022, approved the Scheme of Arrangement between the Company and OCCL Limited (Wholly Owned Subsidiary of the Company), wherein the Chemical business will be demerged from the Company to OCCL Ltd. The Scheme got all the requisite approvals including from shareholders, secured and unsecured creditors. Further, the Hon''ble National Company Law Tribunal, Ahmedabad Bench ("Hon''ble Tribunal") vide its order dated 10 April 2024 has sanctioned the Scheme ("NCLT Order"). The Certified copy of the Order was received by us on 17th April 2024. As per the Scheme the Appointed Date is the Effective Date. However, in the NCLT Order, the Hon''ble Tribunal has suo-motu amended the said Appointed Date to be the date of pronouncement of the NCLT Order i.e. 10 April 2024. After due consideration of the aforesaid NCLT Order, the Management has filed an appeal against the NCLT order before National Company Law Appellate Tribunal (NCLAT) to fix the appointed date as per the original scheme and an Interim stay petition on the operation of NCLT Order. The NCLAT has since granted a stay on the operation of the order with regard to the appointed date. Due to the foregoing, currently there is no certainty on either the appointed date or the effective date. Further, the Scheme cannot be operational unless the Company has filed the Order with the Registrar of Companies Considering this, both the parties have mutually agreed that if the Scheme does not attain finality before 31st March 2025, the parties shall be at liberty to withdraw the scheme.
41 Monthly statements/returns filled by the Company with banks or financial institutions are in agreement with books of accounts.
42 The figures for the corresponding year have been regrouped / reclassified wherever necessary, to make them comparable.
As per our Report of even date For and on behalf of the Board of Directors
For S S Kothari Mehta & Co. LLP
Chartered Accountants Arvind Goenka Akshat Goenka
Firm Reg. No. 000756N/N500441 Managing Director Jt. Managing Director
DIN-00135653 DIN-07131982
Place : Noida Place : Noida
Deepak K. Aggarwal
Partner Pranab Kumar Maity Anurag Jain
Membership No. 095541 Company Secretary Chief Financial Officer
Membership No. A20606 Place : Noida
Place : Noida Place : Noida
Date : 22/05/2024
Mar 31, 2023
g) Provisions, Contingent Liabilities and Contingent Assets Provision
Provisions are recognized when the Company has a present obligation (legal or constructive) as a result of a past event and it is probable that the outflow of resources embodying economic benefits will be required to settled the obligation in respect of which reliable estimate can be made of the amount of the obligation. When the Company expects some or all of a provision to be reimbursed, the expense relating to provision presented in the statement of profit & loss is net of any reimbursement.
If the effect of the time value of money is material, provisions are disclosed using a current pre-tax rate that reflects, when appropriate, the risk specific to the liability. When discounting is used, the increase in the provision due to the passage of time is recognized as finance cost.
Contingent liability is disclosed in the notes in case of:
There is a possible obligation arising from past events, the existence of which will be confirmed only by the occurrence or nonoccurrence of one or more uncertain future events not wholly within the control of the Company.
⢠A present obligation arising from past event, when it is not probable that as outflow of resources will be required to settle the obligation
⢠A present obligation arises from the past event, when no reliable estimate is possible
⢠A present obligation arises from the past event, unless the probability of outflow are remote.
Commitments include the amount of purchase order (net of advances) issued to parties for completion of assets.
Provisions, contingent liabilities, contingent assets and commitments are reviewed at each balance sheet date.
Onerous Contracts
A provision for onerous contracts is measured at the lower of the present value of expected cost of terminating the contract and the expected cost of continuing with the contract. Before a provision is established, the company recognizes the impairment on the assets, if any, with the contract.
Contingent assets :
Contingent assets are not accounted in the financial statements unless an inflow of economic benefits is probable.
h) Revenue from Operations:
(i) Revenue from Contracts with Customers
The Company derives revenue from sale of Insoluble Sulphur, Sulphuric Acid and Oleum.
Ind AS 115 "Revenue from Contracts with Customers" provides a control-based revenue recognition model and provides a five step application approach to be followed for revenue recognition.
⢠Identify the contract(s) with a customer;
⢠Identify the performance obligations;
⢠Determine the transaction price;
⢠Allocate the transaction price to the performance obligations;
⢠Recognise revenue when or as an entity satisfies performance obligation.
Revenue from contracts with customers is recognised when control of the goods or services are transferred to the customer at an amount that reflects the consideration to which the Company expects to be entitled in exchange for those goods or services net of discounts, rebates or schemes, if any, offered by the company. The Company has generally concluded that it is the principal in its revenue arrangements.
The disclosures of significant accounting judgements, estimates and assumptions relating to revenue from contracts with customers are provided in Note 15.
Sale of Goods
For sale of goods, revenue is recognised on satisfaction of performance obligation upon transfer of control of promised products to customers at an amount that reflects the consideration the Company expects to receive in exchange for those products.
(ii) Export Benefits
In case of direct exports made by the Company, export benefits arising from Govt. incentives and schemes are recognised on shipment of direct exports.
(iii) Investment Income
Investment income is recognised as and when accrued/reinstated as per the terms of the Investments based on the effective interest rate/appreciation(depreciation) in value of investment as applicable on the basis of quoted price/statements received from the relevant funds/institutions as applicable. Income from Investments including interest income is included in revenue from operations in the statement of Profit and Loss.
Dividend income is recognised when the Company''s right to receive dividend is established, and is included in other income in the statement of profit and loss.
i) Other Revenue Streams Interest Income
Interest income is accrued on a time basis, by reference to the principal outstanding and at the effective interest rate applicable, which is the rate that exactly discounts estimated future cash receipts through the expected life of the financial asset to the asset''s net carrying amount on initial recognition. Interest income is included in other income in the statement of profit and loss.
j) Employee Benefits
i) Short term employee benefits
Short-term employee benefits in respect of salaries and wages, including non-monetary benefits are recognised as an expense at the undiscounted amount in the statement of profit and loss for the year in which the related service is rendered
ii) Defined contribution plans
Employees benefits in the form of the Company''s contribution to Provident Fund, Pension scheme, Superannuation Fund and Employees State Insurance are defined contribution schemes. The Company recognises contribution payable to these schemes as an expense, when an employee renders the related service.
If the contribution payable exceeds contribution already paid, the deficit payable is recognised as a liability (accrued expense), after deducting any contribution already paid. If the contribution already paid exceeds the contribution due for service before the end of the reporting period, the Company recognise that excess as an asset (prepaid expense) to the extent that the prepayment will lead to, for example, a reduction in future payments or a cash refund.
iii) Defined benefit plans
Retirement benefits in the form of gratuity are considered as defined benefit plans. The Company''s net obligation in respect of defined benefit plans is calculated by estimating the amount of future benefit that employees have earned in the current and prior periods, discounting that amount and deducting the fair value of any plan assets.
The Company provides for its gratuity liability based on actuarial valuation of the gratuity liability as at the Balance Sheet date, based on Projected Unit Credit Method, carried out by an independent actuary. The Company contributes to the gratuity fund, which are recognised as plan assets. The defined benefit obligation as reduced by fair value of plan assets is recognised in the Balance Sheet.
When the calculation results in a potential asset for the company, the recognised asset is limited to the present value of economic benefits available in the form of any future refunds from the plan or reductions in future contributions to the plan. To calculate the present value of economic benefits, consideration is given to any applicable minimum funding requirements.
Remeasurement of the net defined benefit liability, which comprise actuarial gains and losses, the return on plan assets (excluding interest) and the effect of the asset ceiling (if any, excluding interest), are recognised immediately in Other Comprehensive Income. Net interest expense (income) on the net defined liability (assets) is computed by applying the discount rate, used to measure the net defined liability (asset), to the net defined liability (asset) at the start of the financial year after taking into account any changes as a result of contribution and benefit payments during the year. Net interest expense and other expenses related to defined benefit plans are recognised in profit or loss.
When the benefits of a plan are changed or when a plan is curtailed, the resulting change in benefit that relates to past service or the gain or loss on curtailment is recognised immediately in profit or loss. The Company recognises gains and losses on the settlement of a defined benefit plan when the settlement occurs.
iv) Other long-term employee benefits
Employee benefits in the form of long term compensated absences are considered as long term employee benefits. The Company''s net obligation in respect of long-term employee benefits is the amount of future benefit that employees have earned in return for their service in the current and prior periods. That benefit is discounted to determine its present value. Remeasurement are recognised in profit or loss in the period in which they arise.
The liability for long term compensated absences are provided based on actuarial valuation as at the Balance Sheet date, based on Projected Unit Credit Method, carried out by an independent actuary.
k) Foreign currency transactions Initial recognition:
Transactions in foreign currencies are translated into the Company''s functional currency at the exchange rates at the dates of the transactions.
Conversion:
Monetary assets and liabilities denominated in foreign currencies are translated into the functional currency at the exchange rate at the reporting date. Non-monetary assets and liabilities that are measured at fair value in a foreign currency are translated into the functional currency at the exchange rate when the fair value was determined. Non-monetary assets and liabilities that are measured based on historical cost in a foreign currency are translated at the exchange rate at the date of the transaction.
Exchange difference:
Exchange differences are recognised in Statement of profit & loss. In accordance with Ind-AS 101 ''First Time Adoption of Indian Accounting Standards'', the Company has continued the policy of capitalisation of exchange differences on foreign currency loans taken before the transition date. Accordingly, exchange differences arising on translation of long term foreign currency monetary items relating to acquisition of depreciable fixed assets taken before the transition date are capitalized and depreciated over the remaining useful life of the asset.
l) Research and Development Expenses
Revenue Expenditure on Research and Development is charged to Statement of Profit and loss in the year in which it is incurred and capital expenditure is added to Property, Plant & Equipment.
m) Borrowing costs
Borrowing costs are interest and other costs (including exchange differences relating to foreign currency borrowings to the extent that they are regarded as an adjustment to interest costs) incurred in connection with the borrowing of funds. Borrowing costs directly attributable to acquisition or construction of an asset which necessarily take a substantial period of time to get ready for their intended use are capitalised as part of the cost of that asset. Other borrowing costs are recognised as an expense in the period in which they are incurred.
n) Income Tax
Income tax expense comprises current and deferred tax. It is recognised in profit or loss except to the extent that it relates to items recognised directly in Other Comprehensive Income
i) Current tax
Current tax comprises the expected tax payable or receivable on the taxable income or loss for the year after taking credit of the benefits available under the Income Tax Act and any adjustment to the tax payable or receivable in respect of previous years. It is measured using tax rates enacted or substantively enacted at the reporting date.
Current tax assets and liabilities are offset only if, the Company:
a) has a legally enforceable right to set off the recognised amounts; and
b) intends either to settle on a net basis, or to realise the asset and settle the liability simultaneously.
ii) Deferred tax
Deferred tax is recognised in respect of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the corresponding tax bases used for taxation purposes. Deferred tax is not recognised for:
- temporary differences on the initial recognition of assets or liabilities in a transaction that is not a business combination and that affects neither accounting nor taxable profit or loss; and
- temporary differences related to investments in subsidiary to the extent that the Company is able to control the timing of the reversal of the temporary differences and it is probable that they will not reverse in the foreseeable future.
A deferred income tax asset is recognised to the extent that it is probable that future taxable profits will be available against which deductible temporary differences and tax losses can be utilised. Deferred tax assets are reviewed at each reporting date and are reduced to the extent that it is no longer probable that the related tax benefit will be realised; such reductions are reversed when the probability of future taxable profits improves.
Unrecognised deferred tax assets are reassessed at each reporting date and recognised to the extent that it has become probable that future taxable profits will be available against which they can be used.
Deferred tax is measured at the tax rates that are expected to be applied to temporary differences when they reverse, using tax rates enacted or substantively enacted at the reporting date. The measurement of deferred tax reflects the tax consequences that would follow from the manner in which the Company expects, at the reporting date, to recover or settle the carrying amount of its assets and liabilities.
For operations carried out in tax free units, deferred tax assets or liabilities, if any, have been recognised for the tax consequences of those temporary differences between the carrying values of assets and liabilities and their respective tax bases that reverse after the tax holiday ends.
Deferred tax assets and liabilities are offset only if:
a) The entity has a legally enforceable right to set off current tax assets against current tax liabilities; and
b) The deferred tax assets and the deferred tax liabilities relate to income taxes levied by the same taxation authority on the same taxable entity.
Deferred tax assets include Minimum Alternative Tax (MAT) paid in accordance with the tax laws, which gives rise to future economic benefits in the form of adjustment of future income tax liability, is considered as an asset if there is probable evidence that the Company will pay normal income tax in future. Accordingly, MAT is recognised as deferred tax asset in the Balance Sheet.
o) Segment Reporting
The accounting policies adopted for the segment reporting are in conformity with the accounting policies adopted for the Company. Primary Segments are identified by the chief operational decision maker (CODM) based on the nature of products and services, the different risks and returns and the internal business reporting system. Revenue, Expense, Assets and Liabilities, which relate to the Company as a whole and could not be allocated to segments on a reasonable basis, have been classified as unallocated. Secondary segment is identified based on geography by location of customers i.e. in India and outside India. Segment revenue includes sales and other income directly identifiable with / allocable to the segment including intersegment transfers.Inter segment transfers are accounted for based on the transaction price agreed to between the segments which is at cost in case of transfer of Company''s intermediate and final products and estimated realisable value in case of by-products.
p) Cash and cash equivalents
Cash and cash equivalents comprise cash at bank and on hand and short-term deposits with original maturities of three months or less that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value.
q) Cash flow statement
Cash flow statements are prepared in accordance with "Indirect Method" as explained in the Accounting Standard on Statement of Cash Flows (Ind AS - 7). The cash flows from regular revenue generating, financing and investing activity of the Company are segregated.
r) Lease
The Company assesses at contract inception whether a contract is, or contains, a lease. That is, if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration.
Company as lessee
The Company''s lease asset classes primarily comprise of lease for land and building. The Company assesses whether a contract contains a lease, at inception of a contract. A contract is, or contains, a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. To assess whether a contract conveys the right to Control the use of an identified asset, the Company assesses whether: (i) the contract involves the use of an identified asset (ii) the Company has substantially all of the economic benefits from use of the asset through the period of the lease and (iii) the Company has the right to direct the use of the asset.
The Company applies a single recognition and measurement approach for all leases, except for short-term leases and leases of low-value assets. For these short-term and low value leases, the Company recognizes the lease payments as an operating expense on a straight-line basis over the term of the lease. The Company recognises lease liabilities to make lease payments and right-of-use assets representing the right to use the underlying assets as below:.
i) Right-of-use assets
The Company recognises right-of-use assets at the commencement date of the lease (i.e., the date the underlying asset is available for use). Right-of-use assets are measured at cost, less any accumulated depreciation and impairment losses, and adjusted for any remeasurement of lease liabilities. The cost of right-of-use assets includes the amount of lease liabilities recognised, initial direct costs incurred, and lease payments made at or before the commencement date less any lease incentives received. Right-of-use assets are depreciated on a straight-line basis over the shorter of the lease term and the estimated useful lives of the underlying assets.
If ownership of the leased asset transfers to the Company at the end of the lease term or the cost reflects the exercise of a purchase option, depreciation is calculated using the estimated useful life of the asset. The right-of-use assets are also subject to impairment. Refer to the accounting policies in section ''Impairment of non financial assets''.
ii) Lease Liabilities
At the commencement date of the lease, the Company recognises lease liabilities measured at the present value of lease payments to be made over the lease term. The lease payments include fixed payments (including in substance fixed payments) less any lease incentives receivable, variable lease payments that depend on an index or a rate, and amounts expected to be paid under residual value guarantees. The lease payments also include the exercise price of a purchase option reasonably certain to be exercised by the Company and payments of penalties for terminating the lease, if the lease term reflects the Company exercising the option to terminate. Variable lease payments that do not depend on an index or a rate are recognised as expenses (unless they are incurred to produce inventories) in the period in which the event or condition that triggers the payment occurs.
In calculating the present value of lease payments, the Company uses its incremental borrowing rate at the lease commencement date because the interest rate implicit in the lease is not readily determinable. After the commencement date, the amount of lease liabilities is increased to reflect the accretion of interest and reduced for the lease payments made. In addition, the carrying amount of lease liabilities is remeasured if there is a modification, a change in the lease term, a change in the lease payments (e.g., changes to future payments resulting from a change in an index or rate used to determine such lease payments) or a change in the assessment of an option to purchase the underlying asset.
The Company''s lease liabilities are included in other current and non-current financial liabilities (see Note 10c).
iii) Short-term leases and leases of low-value assets
The Company applies the short-term lease recognition exemption to its short-term leases (i.e., those leases that have a lease term of 12 months or less from the commencement date and do not contain a purchase option). It also applies the lease of
low-value assets recognition exemption to leases that are considered to be low value. Lease payments on short-term leases and leases of low-value assets are recognised as expense on a straight-line basis over the lease term.
"Lease liability" and "Right of Use" asset have been separately presented in the Balance Sheet and lease payments have been classified as financing cash flows.
s) Scheme of Arrangement
The Board of Directors of the Company has approved the Scheme of Arrangement between the Company and OCCL Limited (wholly owned subsidiary of the Company) and their respective shareholders and creditors for the demerger of the Chemical Business undertaking of the Company to OCCL Limited ("Scheme"). The Appointed Date of the Scheme is the Effective Date and the Scheme is subject to approval of requisite regulatory authorities and will be given effect to in the financial results of the Company on the effective date.
t) Earning per share
Basic earnings per share is calculated by dividing the net profit or loss for the period attributable to Equity Shareholders by the weighted average number of equity shares outstanding during the period.
For the purpose of calculating diluted Earning per Share, the net profit or loss for the period attributable to Equity Shareholders and the weighted average number of shares outstanding during the period are adjusted for the effects of all dilutive potential equity shares.
33 FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES (Contd.)
ii Market Risk
Market risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of fluctuation in market prices. These comprise three types of risk i.e. currency rate , interest rate and other price related risks. Financial instruments affected by market risk include loans and borrowings, deposits, investments, and derivative financial instruments. Foreign currency risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in foreign exchange rates. Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. Regular interaction with bankers, intermediaries and the market participants help us to mitigate such risk.
a) Foreign Currency risk
The primary market risk to the Company is foreign exchange risk. The Company uses derivative financial instruments to reduce foreign exchange risk exposures and follows its risk management policies to mitigate the same. After taking cognisance of the natural hedge, the company takes appropriate hedges to mitigate its risk resulting from fluctuations in foreign currency exchange rate(s).
33 FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES (Contd.)
Sensitivity Analysis
A reasonable possible strengthening (weakening) of the Indian Rupee at March 31 would have affected the measurement of financial instruments denominated in Foreign Currencies and affected equity and profit or loss by the amounts shown below. This analysis assumes that all other variables, in particular interest rates, remain constant and ignores any impact of forecast sales and purchases. A 1% increase or decrease is used when reporting foreign currency risk internally to key management personnel and represents management''s assessment of the reasonable possible change in foreign currency rate.
41 Monthly statements/returns filled by the Company with banks or financial institutions are in agreement with books of accounts.
42 The figures for the corresponding year have been regrouped / reclassified wherever necessary, to make them comparable.
As per our Report of even date For and on behalf of the Board of Directors
For S S Kothari Mehta & Company
Chartered Accountants Arvind Goenka Akshat Goenka
Firm Reg. No. 000756N Managing Director Jt. Managing Director
DIN-00135653 DIN-07131982
Place : Noida Place : Noida
Naveen Aggarwal
Partner Pranab Kumar Maity Anurag Jain
Membership No. 094380 Company Secretary Chief Financial Officer
Membership No. A20606 Place : Noida
Place : Noida
Date: 19th May, 2023 Place : Noida
Mar 31, 2019
1. Company Overview, Basis of Preparation and Significant Accounting Policies
I Corporate Information
Oriental Carbon & Chemicals Limited ( âOCCLâ or âthe Companyâ ) is a public limited company domiciled in India and has its registered office at Kolkata. The shares of the Company are listed on National Stock Exchange of India Ltd. and Bombay Stock Exchange Ltd. The Companyâs core business is manufacturing and sales of Insoluble Sulphur. The Company is a global supplier of Insoluble Sulphur and about two-third of the turnover of the Company is from Exports. It has two manufacturing facilities, one in Haryana and other one in Gujrat.
II BASIS OF PREPARATION
a) Statement of compliance
These financial statements have been prepared in accordance with the recognition and measurement principles laid down in the Indian Accounting Standard (âInd ASâ) as per the Companies (Indian Accounting Standards) Rules, 2015 (As amended) notified under Section 133 of the Companies Act, 2013 (âthe Actâ) and other relevant provisions of the Act to the extent applicable.
These financial statements were authorised for issue by the Board of Directors on May 10, 2019
b) Basis of measurement
The financial statements have been prepared on an accrual basis and under the historical cost convention, except for the following:
i. Certain financial assets and liabilities (including derivative instruments) measured at Fair Value / Amortised Cost;
ii. Defined benefit plan assets measured at Fair Value;
c) Functional and presentation currency
Items included in the financial statements of the Company are measured using the currency of the primary economic environment in which the Company operates (âthe functional currencyâ). The financial statements are presented in Indian National Rupee (âINRâ), which is the Companyâs functional and presentation currency. All amounts have been rounded to two decimal points of lakhs, unless otherwise indicated.
d) Current or Non current classification
All Assets and Liabilities have been classified as current or non-current as per the Companyâs normal operating cycle and other criteria set out in the Schedule III to the Companies Act, 2013. Based on the nature of the business of the Company and its business time cycle from inception of an order and its completion on realization in cash and cash equivalents, the Company has ascertained the operating cycle as 12 months for the purpose of current and non-current classification of assets and liabilities.
e) Use of judgements and estimates
In preparing these financial statements, management has made judgements, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, the disclosures of contingent liabilities and contingent assets as at the date of financial statements, income and expenses during the period. Actual results may differ from these estimates. Estimates and underlying assumptions are reviewed on an on-going basis. Revisions to estimates are recognised prospectively.
Application of accounting policies that require critical accounting estimates and assumption judgements having the most significant effect on the amounts recognised in the financial statements are:
Measurement of defined benefit obligations;
Recognition of deferred tax assets & MAT credit entitlement;
Useful life and residual value of Property, plant and equipment and intangible assets;
Measurement of Fair Value of Current Investments;
Measurement of fair value of Equity Investments.
a. Terms / rights attached to Equity Shares
Each holder of equity shares is entitled to one vote per share. In the event of liquidation of the Company, the holders of equity shares 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. There is no restriction on distribution of dividend. However, same except interim dividend is subject to the approval of the shareholders in the Annual General Meeting.
b. Reconciliation of Shares outstanding at the beginning and at the end of the reporting period
d. Note on Buyback of Equity Shares
The Board of Directors of the Company, at its meeting held on November 01, 2018, has approved a proposal to buy back the Companyâs fully paid-up equity shares of the face value of RS.10/- each at a maximum price of RS.1150/- per equity share up to total amount of buy back of RS.3500.00 lakhs from itâs members / beneficial owners / other than those who are promoters or persons in control of the Company and the promoter group, under the open market route through stock exchange. The buy back process commenced on November 14, 2018 and closed on March 02, 2019. During the period, the Company has bought back 3,05,970 equity shares and extinguished on March 02, 2019.
Notes: (i) Capital Reserve:
The Company had recognised Surplus arising out of transfer of Assets and Liabilities of erstwhile Carbon Black Division to Capital Reserve.
(ii) Securities Premium:
In the earlier years, the Company has received Share Premium on conversion of fully convertible debentures into equity shares and also on allotment of equity shares issued on rights basis.
(iii) Capital Redemption Reserve:
An amount of RS.30.60 lakhs (equivalent to nominal value of the equity shares bought back and cancelled by the Company in the year ended March 2019) has been transferred to Capital Redemption Reserve from General Reserve pursuant to the provisions of Section 69 of the Companies Act, 2013 and the article 8 of the Article of Association of the Company. (Refer Note No. 7(d)).
(iv) Items of Other Comprehensive Income
The Company recognises the gain or loss on fair value of non-current investments and Remeasurement Gain or loss on Defined Benefit Plans under Items of Other Comprehensive Income.
(v) During the year, the Company has paid Interim dividend of RS.4.00; (Previous year RS.3.00) per equity share.
Now, final dividend RS.8.00 (Previous year RS.7.00) per equity share for financial year 2018-19 is recommended by the Board of Directors, which is subject to the approval of the shareholders in the ensuing Annual General Meeting.
Notes:
(i) (a) Securities:
Secured by (i) First exclusive charge on entire fixed assets including equitable mortgage of factory land and building of Dharuhera unit with State Bank of India; (ii) First pari-pasu charge with Exim Bank and Kotak Mahindra Bank Ltd on entire fixed assets including equitable mortgage of factory land and building of SEZ Mundra Unit; (iii) Second pari-pasu charge with Exim Bank on entire fixed assets of Dharuhera Unit including equitable mortgage of factory land and building of Dharuhera Unit; (iv) Second pari-pasu charge with Exim Bank on entire current assets of the Company.
(ii) Secured by hypothecation of vehicles purchased under the scheme and non-current portion of RS.89.51 lakhs (Previous year RS.0.43 lakhs) is repayable in 15 to 49 (Previous year 2) equated monthly instalments in 2019-20 onwards as per the repayment schedule.
(iii) Deposits from public carries rate of interest @ 7.75% to 8.00% (Previous year 7.75% to 8.00%) p.a. and non-current portion of RS.138.42 lakhs (Previous year RS.210.47 lakhs) is repayable after 1 to 3 years (Previous year 1 to 3 years) from the date of acceptance of deposits.
Security:
Cash Credit, Packing Credit and Bill Discounting are secured by first exclusive charge on entire current assets of the Company and second exclusive charge over the entire fixed assets including equitable mortgage of factory land and building of Mundra SEZ Unit with State Bank of India.
The Company offsets tax assets and liabilities if and only if it has a legally enforceable right to set off current tax assets and current tax liabilities and the deferred tax assets and deferred tax liabilities relate to income taxes levied by the same tax authority. During the year ended March 31, 2019, the Company has paid dividend to its shareholders. This has resulted in payment of DDT to the taxation authorities. The Company believes that DDT represents additional payment to taxation authority on behalf of the shareholders. Hence DDT paid is charged to equity.
* During the year the Company Created MAT Credit amounting to RS.105.68 lakhs (Previous year RS.21.72 lakhs).
2. Employee Benefits
The Company participates in defined contribution and benefit schemes, the assets of which are held (where funded) in separately administered funds. For defined contribution schemes the amount charged to the statements of profit or loss is the total of contributions payable in the year.
a) Defined Contribution Plans
Amount recognized as an expense and included in Note No. 18 Item âContribution to Provident and Other Fundsâ RS.196.33 lakhs (Previous year RS.177.25 lakhs) Consist of Contribution to Superannuation Fund RS.38.63 lakhs (Previous year RS.36.39 lakhs) and to Provident and other fund H 157.70 lakhs (Previous year RS.140.86 lakhs).
b) Other long-term benefits
Amount recognized as an expense and included in Note No. 18 Item âLong Term Compensated Absences RS.64.47 lakhs (Previous year RS.48.85 lakhs) for long term compensated Absences.
c) Defined benefits plans - as per actuarial valuation
Gratuity Expense RS.46.61 lakhs (Previous year RS.83.78 lakhs) has been recognized in âGratuityâ under Note No. 18 as per Actuarial Valuation.
I. Description of Risk Exposures:
Valuations are based on certain assumptions, which are dynamic in nature and vary over time. As such company is exposed to various risks as follow -
a) Salary Increases- Actual salary increases will increase the Planâs liability. Increase in salary increase rate assumption in future valuations will also increase the liability.
b) Investment Risk - If Plan is funded then assets liabilities mismatch & actual investment return on assets lower than the discount rate assumed at the last valuation date can impact the liability.
c) Discount Rate - Reduction in discount rate in subsequent valuations can increase the planâs liability.
d) Mortality & disability - Actual deaths & disability cases proving lower or higher than assumed in the valuation can impact the liabilities.
e) Withdrawals - Actual withdrawals proving higher or lower than assumed withdrawals and change of withdrawal rates at subsequent valuations can impact Planâs liability.
3. Related Party Disclosures
Related party disclosure, as required by Indian Accounting Standard-24, is as below:
I. Nature of Related Party relationship
(a) Duncan Engineering Limited (Formerly known as Schrader Duncan Limited) : Subsidiary Company
(b) Duncan International (India) Limited : Enterprise over which relative of key management personnel is having significant influence.
(c) Cosmopolitan Investments Ltd. : Enterprise over which key management personnel is having significant influence.
(d) Haldia Investments Ltd. : Subsidiary of Cosmopolitan Investments Ltd.
(e) Disciplined Investments Ltd. : Subsidiary of Cosmopolitan Investments Ltd.
II. Key Management Personnel (KMP) & their relatives with whom transactions have taken place:
(a) Key Management Personnel
(i) Mr. J.P. Goenka - Chairman : Chairman and Relative of Key Management Personnel *
(ii) Mr. Arvind Goenka - Managing Director : Key Management Personnel
(iii) Mr. Akshat Goenka - Joint Managing Director : Key Management Personnel
(iv) Mr. S.J. Khaitan - Director : Non-Executive Director *
(v) Mr. O.P. Dubey - Director : Non-Executive Director *
(vi) Mr. B.B. Tandon - Director : Non-Executive Director *
(vii) Mr. K. Raghuraman - Director : Non-Executive Director *
(viii) Mr. H.S. Shashikumar - Nominee of Life Insurance Corporation of India : Non-Executive Director *
(ix) Mrs. Runa Mukherjee - Director : Non-Executive Director *
(x) Mr. Anurag Jain - Chief Financial Officer : Key Management Personnel
(xi) Mr. Pranab Kumar Maity - Company Secretary : Key Management Personnel
* Directorâs Fees and Commission paid
(b) Relatives of Key Management Personnel
(i) Mrs. Aparna Goenka : Relative of Key Management Personnel
(ii) Mr. Shreyans Goenka : Relative of Key Management Personnel
III. Entities Controlled by Key Management Personnel with whom transactions have taken place:
(i) OCCL CSR Trust : Trust in which key management personnel are Trustees
(ii) Oriental CSR Trust : Trust in which key management personnel are Trustees
(iii) Oriental Carbon & Chemicals Limited Employees Gratuity Fund : Trust in which key management personnel are Trustees
4. Segment Reporting
The Companyâs business activity falls within a single segment viz., Manufacturing and Sales of Chemicals. The segment has been identified by taking into account the nature of product, the differing risks, the returns, the organisation structure and the internal reporting systems and the manner in which operating results are reviewed by the Chief Operating Decision Maker (CODM).
The fair value of cash and cash equivalents, bank balances other than cash and cash equivalents trade receivables, short term loans, current financial assets, trade payables, current financial liabilities and borrowings at their carrying amount.
Fair value hierarchy
The table shown above analyses financial instruments carried at fair value, by valuation method. The different levels have been defined below: Level 1 This includes financial instruments measured using quoted prices.
Level 2 The fair value of financial instruments that are not traded in an active market is determined using valuation techniques which maximise the use of observable market data and rely as little as possible on entity-specific estimates.
Level 3 If one or more of the significant inputs is not based on observable market data, the instrument is included in level 3. There are no transfers between level 1, level 2 and level 3 during the year.
Valuation technique used to determine fair value:
Specific valuation techniques used to value financial instruments include:
The use of quoted market prices
The fair value of forward foreign exchange contracts is determined using forward exchange rates at the balance sheet date (MTM)
As per Para D-15 of Appendix D of Ind AS 101, Company has opted to value its investment in Subsidiary at Cost.
The fair values for security deposits (assets & liabilities) were based on their carrying values.
5. Financial Risk Management Objectives and Policies
A Financial risk factors
The Company is exposed to various financial risks i.e. market risk, credit risk and risk of liquidity. These risks are inherent and integral aspect of any business. The primary focus of the Risk Management Policy is to foresee the unpredictability of financial markets and seek to minimize potential adverse effects on its financial performance. The primary market risk consists of foreign exchange risk and interest rate risk. The Company calculates and compares the various proposals of funding by including cost of currency hedging also. The Company uses derivative financial instruments (Forward Covers) to reduce foreign exchange risk exposures.
i. Credit risk
The Company evaluates the customer credentials carefully from trade sources before extending credit terms and credit terms are extended to only financially sound customers. The Company secures adequate advance from its customers whenever necessary and hence risk of bad debt is limited. The credit outstanding is sought to be limited to the sum of advances and credit limit determined by the Company. The Company have stop supply mechanism in place in case outstanding goes beyond agreed limits.
ii Market Risk
Market risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of fluctuation in market prices. These comprise three types of risk i.e. currency rate , interest rate and other price related risks. Financial instruments affected by market risk include loans and borrowings, deposits, investments, and derivative financial instruments. Foreign currency risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in foreign exchange rates. Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. Regular interaction with bankers, intermediaries and the market participants help us to mitigate such risk.
a) Foreign Currency risk
The primary market risk to the Company is foreign exchange risk. The Company uses derivative financial instruments to reduce foreign exchange risk exposures and follows its risk management policies to mitigate the same. After taking cognisance of the natural hedge, the Company takes appropriate hedges to mitigate its risk resulting from fluctuations in foreign currency exchange rate(s).
The following table analyses foreign currency risk from financial instruments as of March 31, 2019:
Sensitivity Analysis
A reasonable possible strengthening (weakening) of the Indian Rupee at March 31 would have affected the measurement of financial instruments denominated in Foreign Currencies and affected equity and profit or loss by the amounts shown below. This analysis assumes that all other variables, in particular interest rates, remain constant and ignores any impact of forecast sales and purchases. A 1% increase or decrease is used when reporting foreign currency risk internally to key management personnel and represents managementâs assessment of the reasonable possible change in foreign currency rate.
b) Interest Rate Risk and Sensitivity
The Companyâs exposure to the risk of changes in market interest rates relates primarily to long term debt. Borrowings at variable rates expose the Company to cash flow interest rate risk. With all other variables held constant, the following table demonstrates composition of fixed and floating rate borrowing of the Company and impact of floating rate borrowings on Companyâs profitibality.
iii Liquidity risk
Liquidity risk arises when the Company will not be able to meet its present and future cash and collateral obligations. The risk management action focuses on the unpredictability of financial markets and tries to minimise adverse effects. The Company uses derivative financial instruments to hedge risk exposures. Risk management is carried out by the Finance department under Forex Policies as adopted and duly approved by the Board. The Companyâs approach is to ensure, as far as possible, that it will have sufficient liquidity to meet its liabilities when due and company monitors rolling forecasts of its liquidity requirements.
The table below provides details regarding the contractual maturities of significant financial liabilities as of March 31, 2019:
6. Financial Risk Management Objectives and Policies (contd.)
The table below provides details regarding the contractual maturities of significant financial liabilities as of March 31, 2018:
B Capital Risk Management
The Companyâs Policy is to maintain an adequate capital base so as to maintain creditor and market confidence and to sustain future development. Capital includes issued capital, share premium and all other equity reserves attributable to equity holders. In order to strengthen the capital base, the Company may use appropriate means to enhance or reduce capital, as the case may be.
7. Previous year figures have been regrouped/ rearranged, wherever considered necessary to conform to current yearâs classification.
Mar 31, 2018
Notes:
(i) Gross Block includes Rs. 129.69 Lakhs (Previous year Rs. 176.21 Lakhs) purchased under Car Finance Scheme.
(ii) The Expansion at Mundra has commenced commercial production on 20th Decemberâ2016. Pre-Operative and start up expenses aggregating Rs. 810.03 Lakhs (including cumulative borrowing cost Rs. 59.32 Lakhs Previous year Rs. Nil ) has been allocated to fixed assets proportionate to their direct cost.
(iii) Building includes properties costing Rs. 3,496.42 Lakhs pending for registration (Previous year Rs. 49.20 Lakhs)
(iv) The Company has exercised option under notification no. GIR 914 (E) dated 29th Decemberâ2011 issued by Ministry of Corporate Affairs and accordingly net exchange loss for the year amounting to Rs. 34.37 Lakhs (Previous year Rs. 138.39 Lakhs) on long term foreign currency loans have been capitalized.
(v) During the year 2016-17, the Company has changed the useful life of Air conditioners and Coolers from 10 years to 5 years resulting in an increase in depreciation by Rs. 22.76 Lakhs; (Previous year Nil).
NOTES TO FINANCIAL STATEMENT FOR THE YEAR ENDED MARCH 31, 2018
Level 1 This includes financial instruments measured using quoted prices.
Level 2 The fair value of financial instruments that are not traded in an active market is determined using valuation techniques which maximize the use of observable market data and rely as little as possible on entity-specific estimates.
Level 3 If one or more of the significant inputs is not based on observable market data, the instrument is included in level 3. There are no transfers between level 1, level 2 and level 3 during the year.
Valuation technique used to determine fair value:
Specific valuation techniques used to value financial instruments include:
The use of quoted market prices
The fair value of forward foreign exchange contracts is determined using forward exchange rates at the balance sheet date (MTM) As per Para D-15 of Appendix D of Ind AS 101, the first time adopter may chose to measure its investment in Subsidiary at Cost or at Fair Value. Company has opted to value its investment in Subsidiary at Cost.
The fair values for security deposits (assets & liabilities) were based on their carrying values.
33 FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES
A. Financial risk factors
The Company is exposed to various financial risks i.e. market risk, credit risk and risk of liquidity. These risks are inherent and integral aspect of any business. The primary focus of the Risk Management Policy is to foresee the unpredictability of financial markets and seek to minimize potential adverse effects on its financial performance. The primary market risk consists of foreign exchange risk and interest rate risk. The Company calculates and compares the various proposals of funding by including cost of currency hedging also. The Company uses derivative financial instruments (Forward Covers) to reduce foreign exchange risk exposures.
i. Credit risk
The Company evaluates the customer credentials carefully from trade sources before extending credit terms and credit terms are extended to only financially sound customers. The Company secures adequate advance from its customers whenever necessary and hence risk of bad debt is limited. The credit outstanding is sought to be limited to the sum of advances and credit limit determined by the Company. The Company have stop supply mechanism in place in case outstanding goes beyond agreed limits.
ii Market Risk
Market risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of fluctuation in market prices. These comprise three types of risk i.e. currency rate , interest rate and other price related risks. Financial instruments affected by market risk include loans and borrowings, deposits, investments, and derivative financial instruments. Foreign currency risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in foreign exchange rates. Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. Regular interaction with bankers, intermediaries and the market participants help us to mitigate such risk.
a. Foreign Currency risk
The primary market risk to the Company is foreign exchange risk. The Company uses derivative financial instruments to reduce foreign exchange risk exposures and follows its risk management policies to mitigate the same. After taking cognizance of the natural hedge, the company takes appropriate hedges to mitigate its risk resulting from fluctuations in foreign currency exchange rate(s).
iii Liquidity risk
Liquidity risk arises when the Company will not be able to meet its present and future cash and collateral obligations. The risk management action focuses on the unpredictability of financial markets and tries to minimize adverse effects. The Company uses derivative financial instruments to hedge risk exposures. Risk management is carried out by the Finance department under Forex Policies as adopted and duly approved by the Board. The Companyâs approach is to ensure, as far as possible, that it will have sufficient liquidity to meet its liabilities when due and Company monitors rolling forecasts of its liquidity requirements.
34. RELATED PARTY DISCLOSURES
Related party disclosure, as required by Indian Accounting Standard-24, is as below:
I. Nature of Related Party relationship
(a) Duncan Engineering Limited (Formerly known as
Schrader Duncan Limited) : Subsidiary Company
(b) Duncan International (India) Limited : Enterprise over which relative of key management
personnel is having significant influence.
(c) Cosmopolitan Investments Ltd. : Enterprise over which key management personnel is
having significant influence.
(d) Haldia Investments Ltd. : Subsidiary of Cosmopolitan Investments Ltd.
(e) Disciplined Investments Ltd. : Subsidiary of Cosmopolitan Investments Ltd.
II. Key Management Personnel (KMP) & their relatives with whom transactions have taken place:
(a) Key Management Personnel
(i) Mr. J.P. Goenka - Chairman : Chairman and Relative of Key Management Personnel *
(ii) Mr. Arvind Goenka - Managing Director : Key Management Personnel
(iii) Mr. Akshat Goenka - Joint Managing Director : Key Management Personnel
(iv) Mr. S.J. Khaitan - Director : Non-Executive Director *
(v) Mr. O.P. Dubey - Director : Non-Executive Director *
(vi) Mr. B.B. Tandon - Director : Non-Executive Director *
(vii) Mr. K. Raghuraman - Director : Non-Executive Director *
(viii) Mr. H.S. Shashikumar - Nominee of Life
Insurance Corporation of India : Non-Executive Director *
(ix) Mrs. Runa Mukherjee - Director : Non-Executive Director *
(x) Mr. Anurag Jain - Chief Financial Officer : Key Management Personnel
(xi) Mr. Pranab Kumar Maity - Company Secretary : Key Management Personnel
* Director''s Fees and Commission paid
(b) Relatives of Key Management Personnel
(i) Mrs. Aparna Goenka : Relative of Key Management Personnel
(ii) Mr. Shreyans Goenka : Relative of Key Management Personnel
III. Entities Controlled by Key Management Personnel with whom transactions have taken place:
(i) OCCL CSR Trust : Trust in which key management personnel are Trustees
(ii) Oriental Carbon & Chemicals Limited Employees : Trust in which key management personnel are Trustees Gratuity Fund
35. FIRST TIME ADOPTION OF IND AS
As stated in Note 1(II), these are the Companyâs first financial statements prepared in accordance with Ind AS The accounting policies set out in Note 1(III) have been applied in preparing the financial statements for the year ended March 31, 2018, the comparative information presented in these financial statements for the year ended March 31, 2017 and in the preparation of an opening Ind AS statement of financial position at April 01 2016 (the Companyâs date of transition). In preparing its opening Ind AS statement of financial position, the Company has adjusted amounts reported previously in financial statements prepared in accordance with Indian GAAP (previous GAAP). An explanation of how the transition from previous GAAP to Ind AS has affected the Companyâs financial position, financial performance and cash flows is set out in the following tables and the notes that accompany the tables.
Exemptions and exceptions availed:
Set out below are the applicable Ind AS 101 optional exemptions and mandatory exceptions applied in the transition from previous GAAP to Ind AS.
A. Ind AS optional exemptions:
i. Property, plant and equipment & Intangible assets
Ind AS 101 permits a first-time adopter to elect to continue with the carrying value for all of its property, plant and equipment as recognized in the financial statements as at the date of transition to Ind AS, measured as per the previous GAAP and use that as its deemed cost as at the date of transition after making necessary adjustments for de-commissioning liabilities. This exemption can also be used for intangible assets covered by Ind AS 38 Intangible Assets.
Accordingly, the Company has elected to measure all of its property, plant and equipment and intangible assets at their previous GAAP carrying value.
ii. Investment in subsidiary
Ind AS 101 permits a first-time adopter to elect to continue with the carrying value for all of its investment in subsidiary as recognized in the financial statements as at the date of transition to Ind AS, measured as per the previous GAAP and use that as its deemed cost as at the date of transition.
Accordingly, the Company has elected to measure its investments in subsidiary at their previous GAAP carrying value.
iii. Long-term foreign currency monetary items
Under previous GAAP, paragraph 46A of AS 11 The Effects of Changes in Foreign Exchange Rates, provided an alternative accounting treatment to companies with respect to exchange differences arising on restatement of long term foreign currency monetary items. Exchange differences on account of depreciable assets could be added/deducted from the cost of the depreciable asset, which would then be depreciated over the balance life of the asset. The Company has opted for the said Accounting Treatment as per Ind AS 101.
B. Ind AS mandatory exceptions
i. Estimates
An entityâs estimates in accordance with Ind AS at the date of transition to Ind AS shall be consistent with estimates made for the same date in accordance with previous GAAP (after adjustments to reflect any difference in accounting policies), unless there is objective evidence that those estimates were in error.
Ind AS estimates as at April 1, 2016 are consistent with the estimates as at the same date made in conformity with previous GAAP. The Company made estimation that were consistent in conformity with previous GAAP.
ii. Classification and measurement of financial assets
Ind AS 101 requires an entity to assess classification of financial assets on the basis of facts and circumstances existing as on the date of transition. Accordingly the Company has determined the classification of Financial Assets based on the facts and circumstances exist as on the date of transition
D. Notes to first-time adoption:
1. Investments (Non-Current & Current)
i) The Company has elected to apply previous GAAP carrying amount of its investment in subsidiary as deemed cost as on the date of transition to Ind AS.
ii) For investment in Mutual Fund, Company has elected to fair value through Profit and Loss Account(FVTPL)
iii) For investment in Equity Instruments, Company has elected to fair value through OCI (FVTOCI)
2. Financial Instruments
a) Derivative Financial Instruments
Under Indian GAAP, derivative contracts are restated at each balance sheet date to the extent of any reduction in value is recognized in Statement of Profit and Loss. A gain on valuation is only recognized by the Company if it represents the subsequent reversal of an earlier loss. Also under IGAAP premium on forward contract is amortized over the contract period and value was calculated excluding the premium.
Under Ind AS, both reductions and increases to the fair values of derivative contracts are recognized in profit & loss. Premium is not separately accounted and amortized.
b) Cost of borrowing
Borrowing designated and carried at amortized cost are accounted on EIR method. The upfront fee or cost of borrowing incurred is deferred and accounted on EIR basis. Borrowings are shown as net of amortized amount of upfront fee incurred. Accordingly as at March 31, 2017, Finance Cost was decreased by Rs 20.26 lakhs in statement of profit and loss and the value of term loans were also decreased to that extent.
3. Proposed Dividend
Under Indian GAAP, proposed dividends are recognized as liability in the period to which they relate irrespective of the approval by shareholders. Under Ind AS a proposed dividend is recognized as liability in the period in which it is declared (on approval of shareholders in a general meeting) or paid. Therefore the proposed dividend and dividend distribution tax for the F.Y 2015-16 has been derecognized and recognized during 2016-17 on payment basis.
4. Deferred Tax
Indian GAAP requires deferred tax accounting using the income statement approach, which focuses on differences between taxable profits and accounting profits for the period. Ind AS 12 requires entities to account for deferred taxes using the balance sheet approach, which focuses on temporary differences between the carrying amount of an asset or liability in the balance sheet and its tax base.
5. Fair Valuation of Financial Assets
Mutual Funds has been fair valued through Profit and Loss (FVTPL)
6. Trade Receivables
As per Ind AS 109 requirement, Trade Receivables are to be reported inclusive of Bills Discounted, accordingly Trade Receivables as at March 31, 2017 were increased by Rs. 402.71 Lakhs and the Current Bank Borrowings also increased to that extent.
7. Excise Duty
Under the previous GAAP, revenue from sale of products was presented exclusive of excise duty. Under Ind AS, revenue from sale of goods is presented inclusive of excise duty. The excise duty paid is presented on the face of the statement of profit and loss as part of expenses. This change has resulted in an increase in total revenue and total expenses for the year ended March 31, 2017 by Rs. 1,316.78 Lakhs. There is no impact on the total equity and profit.
8. Remeasurement of post-employment benefit obligations
Under Ind AS, remeasurement i.e. actuarial gains and losses and the return on plan assets, excluding amounts included in the net interest expense on the net defined benefit liability are recognized in other comprehensive income instead of profit or loss. Under the previous GAAP, these remeasurement were forming part of the profit or loss for the year.
9. There is no significant reconciliation items between cash flow prepared under Previous GAAP and those prepared under Ind AS. 36 Previous year figures have been regrouped/ rearranged, wherever considered necessary to conform to current yearâs classification.
Mar 31, 2017
A. Terms / rights attached to Equity shares
Each holder of equity shares is entitled to one vote per share. In the event of liquidation of the company, the holders of equity shares 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. There is no restriction on distribution of dividend. However, same except interim dividend is subject to the approval of the shareholders in the Annual General Meeting.
(a) (i) Securities :
Secured by first exclusive charge on entire fixed assets including equitable mortgage of factory land and building of Dharuhera unit and first pari-pasu charge with Exim Bank and Kotak Mahindra Bank Ltd on entire fixed assets including equitable mortgage of factory land and building of SEZ Mundra Unit and second pari-pasu charge with Exim Bank on entire current assets of the company.
(b) Secured by hypothecation of vehicles purchased under the scheme and non-current portion of Rs. 11.98; (Previous Year Rs. 30.03) is repayable ranging from 1 to 14 equated monthly installments (Previous year 2 to 23 equated monthly installments) in 2017-18 onwards as per the repayment schedule and carries rate of interest of 10.39% to 9.50% (Previous year 10.39% to 9.50%) p.a.
(c) Deposits from public carries rate of interest @ 9% to 11%; ( Previous year 9.50% to 10%) p.a. and non-current portion of Rs. 2,08.65; (Previous year Rs. 3,91.28) is repayable after 1 to 3 years (Previous year 1 to 3 years) from the date of acceptance of deposits.
Security:
Cash Credit & Packing Credit facilities are secured by first exclusive charge on entire current assets of the company and second charge over the entire fixed assets including equitable mortgage of factory land and building of Mundra SEZ Unit and second pari-pasu charge with Exim Bank on entire fixed assets including equitable mortgage of factory land and building of Dharuhera unit and other fixed assets of the Company (except assets having specific charge).
Notes:
(i) Gross Block includes Rs. 1,29.69 ; (Previous year Rs. 1,76.21) purchased under Car Finance Scheme.
(ii) The expansion project at Mundra has commenced commercial production on 20th December, 2016. Pre-Operative and start up expenses aggregating Rs. 8,10.03 Lakhs (including cumulative borrowing cost Rs. 59.32 Lakhs Previous year Rs. Nil ) has been allocated to fixed assets proportionate to their direct cost.
(iii) Building includes properties costing Rs. 34,96.42; pending for registration (Previous year Rs. 49.20)
(iv) The company has exercised option under notification no. GIR 914 (E) dated 29th December''2011 issued by Ministry of Corporate Affairs and accordingly net exchange loss for the year amounting to Rs. 34.37; (Previous year Rs. 1,38.39) on long term foreign currency borrowing has been adjusted with the depreciable fixed assets acquired. As at 31st March 2017 Rs. 4,54.65; (Previous year Rs.4,43.74) remain to be amortized over the balance life of the assets.
(v) During the year, the company has changed the useful life of Air Conditioners and Coolers from 10 years to 5 years resulting in an increase in depreciation by Rs. 22.76; (previous year Nil).
1. Due to Commencement of Expansion project at Mundra, Current year''s figures are not comparable with Previous year.
2. Previous year figures have been regrouped to conform to current year figures
Mar 31, 2016
30.06 Related Party Disclosures as per Accounting Standard - 18 (Related Party Disclosures), to the extent Identified by the Company
1. Name & Relationship of the Related Parties:
(a) Schrader Duncan Limited : Subsidiary Company
(b) Duncan International (India) Limited : Enterprise over which relative of key
management personnel is having significant influence.
(c) Cosmopolitan Investments Ltd. : Enterprise over which key management (w.e.f. 17.12.2015) personnel is having significant influence.
(d) Haldia Investments Ltd. : Subsidiary of Cosmopolitan Investments Ltd. (w.e.f. 17.12.2015)
(e) Disciplined Investments Ltd. : Subsidiary of Cosmopolitan Investments Ltd. (w.e.f. 17.12.2015)
(f) Mr. Arvind Goenka- Managing Director : Key Management Personnel
(g) Mr. Akshat Goenka - Vice President
(From 01.04.15 to 31.05.15) : Key Management Personnel Joint Managing Director (From 01.06.15 onwards)
(h) Mr.Shreyans Goenka - Sr.Manager : Relative of Key Management Personnel
(i) Mrs. Aparna Goenka : Relative of Key Management Personnel (j) Mrs. Uma Goenka I (From 01.04.2015 : Relative of Key Management Personnel (k) Ms. Shreya Goenka | to 12.08.2015) : Relative of Key Management Personnel
(l) Ms. Sujata Goenka : Relative of Key Management Personnel
Mar 31, 2015
A. Terms / rights attached to Equity shares
Each holder of equity shares is entitled to one vote per share. In the
event of liquidation of the company, the holders of equity shares 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.
There is no restriction on distribution of dividend. However, same
except interim dividend is subject to the approval of the shareholders
in the Annual General Meeting.
@ During the year, the Company has paid Interim dividend of Rs. 3/-;
(Previous year Rs. 2/-) per equity share. Now, final dividend Rs.
5.50/-; (Previous Year Rs. 5/-) per equity share for financial year
2014-15 is recommended by the Board of Directors, which is subject to
the approval of the shareholders in the ensuing Annual General Meeting.
(a) (i) Securities :
Secured by first exclusive charge on entire fixed assets including
equitable mortgage of factory land and building of Dharuhera unit and
first pari-pasu charge with Exim Bank on entire fixed assets including
equitable mortgage of factory land and building of SEZ Mundra Unit and
second pari-pasu charge with Exim Bank on entire current assets of the
Company.
(b) Housing Loans From HDFC Ltd.
i) Rs. 35.72 (Previous Year Rs. 2,05.74) is secured by way of first
equitable mortgage of ground floor of the property purchased with
collateral security of rest of the said property owned by the other
borrower non-current portion Rs. Nil (Previous Year Rs. 82.69 repayable
in 8 equal monthly instalments as per the repayment schedule), and
carries rate of interest of 12.75% (Previous year 13.00%) p.a.
ii) Rs. Nil (Previous Year Rs. 11.28 is secured by way of equitable
mortgage of three residential flats at Bhiwadi, Rajasthan) .
iii) Rs. Nil (Previous Year Rs. 61.39 to be secured by way of first
equitable mortgage of two residential flats at Gurgaon, Haryana) and
non-current portion of Rs. Nil (Previous Year Rs. 61.39 repayable in 60
equated monthly instalments as per the repayment schedule and carries
rate of interest of 15.35% p.a.)
(c) Secured by hypothecation of vehicles purchased under the scheme and
non-current portion of Rs. 45.46; (Previous Year Rs. 14.03) is
repayable in maximum 20 equated monthly instalments (Previous year 19
equated monthly instalments) in 2016-17 onwards as per the repayment
schedule and carries rate of interest of 10.45%to 10.39% (Previous year
9.25% to 10.59%) p.a.
(d) Deposits from public carries rate of interest @ 10.50% to 11%;
(Previous year 10.50% to 11%) p.a. and non- current portion of Rs.
2,68.54 (Previous year Rs. 1,94.45) is repayable after 1 to 3 years
(Previous year 1 to 3 years) from the date of acceptance of deposits.
Security:
Cash Credit & Packing Credit facilities are secured by first exclusive
charge on entire current assets of the Company and second charge over
the entire fixed assets including equitable mortgage of factory land
and building of Mundra SEZ Unit and second pari-pasu charge with Exim
Bank on entire fixed assets including equitable mortgage of factory
land and building of Dharuhera unit and other fixed assets of the
Company (except assets having specific charge).
#Includes Rs. 12.95 (previous year Rs. 12.95) under legal dispute
between the Joint Holders of the deposit.
* Includes amount added on revaluation Rs. 2,72.45 during 1992-93, out
of which Rs. 43.34 on Building, Rs. 1,52.59 on Plant & Equipment and on
Electric Installation Rs. 12.59 is being adjusted from gross block and
depreciation block on 1st April' 2014.
Notes:
(i) Gross Block includes Rs. 1,50.06; (Previous year Rs. 1,77.98)
purchased under Car Finance Scheme.
(ii) The company has exercised option under notification no. GIR 914
(E) dated 29th December'2011 issued by Ministry of Corporate Affairs
and accordingly net exchange difference for the year amounting to Rs.
(99.97); (Previous year Rs. 3,96.89) on long term foreign currency
borrowing has been (Deducted)/ added to the depreciable fixed assets
acquired. As at 31st March 2015 Rs. 3,27.18 (Previous year Rs.4,49.91)
remain to be amortised over the balance life of the assets.
(iii) During the year, the company has provided depreciation with
refrence to the useful life of respective assets specified in and in
the manner prescribed in Schedule II to the Companies Act, 2013.
Consequently, depreciation for the year is higher by Rs. 2,37.30;
(Previous year Rs. Nil).
* As on 31st March 2015, market value of the shares of subsidiary
company M/S Schrader Duncan Limited was lower by Rs. 2,18.85 (Previous
year Rs. 4,81.33).
However in view of long term strategic investment in the subsidiary
company, no provision for diminution in value has been made as same is
not permanent in nature. ** During the year the company has delisted
and shown the same under Unquoted investments.
* Under Rule 13 of the Companies (Acceptance of Deposits) rules, 2014 .
** Includes Rs. 91.02 (Previous Year Rs. 84.18); pledged with
Government Authority and Rs. 3,25.98 (Previous Year Rs. 3,03.54);
against margin money which can be withdrawn at any point of time
without prior notice or exit costs on the principal amount.
(Rs. In Laks)
As At As At
31st March,2015 31st March,2014
2 Contingent Liabilities & Committments:
2.01 Contingent Liabilities
(i) Bank Guarantees given to various
Govt.Authorities/Others (Margin money/
Short Term Deposits Rs. 1.54; Previous
year Rs. 1.54) 10.26 10.26
(ii) Bills discounted with Banks 13,91.02 11,52.63
(iii) Corporate guarantee given to a bank
for loan taken by Subsidiary Company
(to the extent loan outstanding) 14,69.21 14,70.03
(iv) Matter under Litigations/Appeals
(a) Income tax demand (Deposited Rs. 24.57;
Previous year Rs. 10.03) 46.60 32.07
(b) Central Excise demand (Deposited
Rs.85.58 Previous year Rs.85.58) 1,05.58 1,05.58
(c) Other demands (Deposited Rs.12.00; 22.69 22.69
Previous year Rs.12.00)
The Company is hopeful of favourable decisions and expect no outflow of
resources, hence no provision is made in the books of account.
The estimates of the future salary increase considered in actuarial
valuation take account of inflation, seniority, promotion and other
relevant factors.
3.01 Related Party Disclosures as per Accounting Standard - 18
(Related Party Disclosures), to the extent Identified by the Company
1. Name & Relationship of the Related Parties:
(a) Schrader Duncan Limited : Subsidiary Company
(b) Duncan International (India) Limited : Enterprise over which
relative of key management personnel is having significant influence.
(c) Mr. Arvind Goenka-Managing Director : Key Management Personnel
(d) Mr. Akshat Goenka-Vice President : Son of Key Management Personnel
(e) Mr. Shreyans Goenka-Sr.Manager : Son of Key Management Personnel
(w.e.f. 1st June' 2014)
Mar 31, 2014
(Rs. In Lacs)
As At As At
31st March, 2014 31st March, 2013
1 Contingent Liabilities &
Committments:
1.01 Contingent Liabilities
(i) Bank Guarantees given to
various Govt.Authorities/Others
(Margin money/Short Term
Deposits Rs. 1.54 ;
Previous year Rs. 1.54) 10.26 10.26
(ii) Income tax demand
under appeal
(Deposited Rs. 10.03;
Previous year Rs. Nil) 32.07 -
(iii) Bills discounted
with Banks 11,52.63 15,05.47
(iv) Central Excise demand
under appeal (Deposited
Rs. 85.58 ; Previous
year Rs. 85.58) 1,05.58 1,05.58
(v) Other demands under appeal
(Deposited Rs. 12.00 ;
Previous year Rs. 12.00) 22.69 22.69
(vi) Custom Duty liability
on import of raw material
under Advance Licence - 55.57
(vii) Corporate guarantee
given to a bank for loan taken
by Subsidiary Company (to
the extent loan outstanding) 14,70.03 15,22.12
1.03 Segment reporting has been given in Consolidated Financial
Statement.
1.04 Previous year fgures have been regrouped to conform current year
fgures.
Mar 31, 2013
(Rs. In Lacs)
As At As At
31st March,
2013 31st March,
2012
1 Contingent Liabilities &
Committments:
29.01
Contingent Liabilities
(i) Bank Guarantees given
to various Govt.
Authorities/Others
(Margin money/Short Term
Deposits Rs. 1.54 ;
Previous year Rs. 1.54) 10.26 10.26
(ii) Bills discounted
with Banks 15,05.47 6,77.32
(iii) Central Excise demand
under appeal (Deposited
Rs.85.58 ; Previous year
Rs. 85.58) 1,05.58 1,05.58
(iv) Other demands
under appeal
(Deposited Rs.12.00 ;
Previous year Rs.12.00) 22.69 22.69
(v) Custom Duty liability
on import of raw material
under Advance Licence 55.57 37.65
2.01 Commitments
(i) Estimated amount of
capital commitments
outstanding and
not provided for (Gross) 26,89.22 7,75.34
(Advance Paid Rs. 10,25.32; Previous Year Rs. 4,19.32) (ii) The Company
has entered into an agreement with a foreign company to buy its holding
of 18,48,000 equity shares in a domestic company.
3.01 During this year the Company has acquired 18,48,500 equity shares
(of Rs. 10 each) at a value of Rs. 14,53.65 of M/S Schrader Duncan
Limited. Thereby the said Company became subsidiary of the Company with
effect from 13.04.2013.
3.02 Consequently upon the implementation of SAP 6.1 during the year,
the Company has changed its method of determining cost of Raw Materials
from FIFO to Weighted Average Method. However, it has no material
impact on the valuation of the Raw Material Stock.
3.03 Disclosure relating to amount outstanding at year end and maximum
outstanding during the year of loans and advances, in nature of
loan,required as per clause 32 of the Listing Agreement,are given
below:
3.04 Segment Reporting
Segment information has been prepared in conformity with the accounting
policies adopted for preparing and presenting the fnancial statements
of the Company.
As part of Secondary reporting, revenues are attributed to geographic
areas based on the location of the customers.
The following tables present the revenue, proft, assets and liabilities
information relating to the Business/Geographical segment for the year
ended 31.03.2013
3.05 Related Party Disclosures (To the extent Identifed by the
company)
1. Name & Relationship of the Related Parties:
(a) Schrader Duncan Limited : Subsidiary Company
(b) Duncan International (India) Limited : Associate
(c) Mr. Arvind Goenka - Managing Director : Key Management Personnel
(d) Mr. Akshat Goenka - Son of Mr. Arvind Goenka : Relative of Key
Management Personnel
3.06 Due to commencement of Phase II of new project at Mundra, current
year''s fgures are not comparable with previous year.
3.07 Previous year fgures have been reclassifed/regrouped to conform
current year fgures.
Mar 31, 2012
Terms / rights attached to Equity shares
Each holder of equity shares is entitled to one vote per share. In the
event of liquidation of the company, the holders of equity shares will
be entitled to receive remaining assets of the company, after
distribution of all preferential amounts. The distribution will be in
proportion of the number of equity shares held by the shareholders.
There is no restriction on distribution of dividend. However, same is
subject to the approval of the shareholders in the Annual General
Meeting.
(i) Securities :
(a) Secured against first charge on the fixed assets of the company
including equitable mortgage of factory land and building at Dharuhera,
Haryana (except assets having specific charge) and second charge over
current assets of the company.
(b) (i) Rs.43,00.00 (Previous year Rs.29,50.00) secured by first charge
on the fixed assets of the company at SEZ Mundra, Gujarat including
equitable mortgage of factory land and building on paripassu basis and
extension of charge over current assests of the company.
(ii) Rs.8,49.83 (previous year Rs.5,07.32) secured by first charge on
the fixed assets of the company at SEZ Mundra, Gujarat including
equitable mortgage of factory land and building on paripassu basis and
second charge on the fixed assets of the company at Dharuhera, Haryana.
(iii) Rs.25,00.00 (previous year Rs.Nil) secured by first charge on the
entire fixed assets of the company at Dharuhera, Haryana and first
charge on the fixed assets of the company at SEZ Mundra, Gujarat
including equitable mortgage of factory land and building on paripassu
basis and extension of charge over current assets of the company.
(c) Housing Loans From HDFC Ltd.
i) Rs. 4,64.81; (Previous Year Rs. 5,75.31) is secured by way of first
equitable mortgage of ground floor of the property purchased with
collateral security of rest of the said property owned by the other
borrower and repay- able within a period of 60 months as per the
repayment schedule.
ii) Rs. 37.38; ( Previous Year Rs. 47.81) is secured by way of
equitable mortgage of three residential flats at Bhi- wadi, Rajasthan
and repayable within a period of 60 months as per the repayment
schedule.
iii) Rs. 51.90; (Previous Year Rs. 20.61) to be secured by way of first
equitable mortgage of two residential flats at Gurgaon, Haryana and
repayable within a period of 60 months as per the repayment schedule.
(d) Secured by way of absolute charge on specific assets purchased
under the scheme and repayable within a period of
1 months as per the repayment schedule.
Security:
Cash and Packing Credit facility is secured by first charge on the
entire current assets of the Company including receivables both present
and future and second charge over the fixed assets of the company
(except assets having specific charges).
2. Nature of Operations
The Company is a manufacturer of Insoluble Sulphur and Sulphuric Acid.
The Company has manufacturing facilities at Dharuhera (Haryana) and
Mundra SEZ (Gujarat). Insoluble Sulphur produced by the company is sold
globally.
(Rs. Lakhs)
As At As At
31st March
2012 31st March
2011
3 Contingent Liabilities & Committments:
3.01 Contingent Liabilities
(i) Bank Guarantees given to various Govt.
Authorities/Others (Margin money/Short
Term Deposits Rs. 1.54 ; Previous year
Rs. 1.54) 10.26 10.26
(ii) Bills discounted with Banks 6,77.32 9,42.24
(iii) Income Tax demands under appeal
(Amount deposited Rs. NIL; Previous
Year Rs.1.00) - 1.00
(iv) Central Excise demand under appeal
(deposited Rs.85.58 ; Previous year Rs. 85.58) 1,05.58 1,05.58
(v) Others under appeal (deposited Rs.12.00 ;
Previous year Rs.12.00) 22.69 22.69
(vi) Custom Duty liability on import of raw
material under advance licence 37.65 26.82
3.02 Commitments
(i) Estimated amount of capial commitments
outstanding and not provided for (Gross) 7,75.34 19,74.59
(Advance Paid Rs. 4,19.32. Previous
Year Rs. 5,21.58)
(ii) The Company has entered into a agreement with a foreign company to
buy its holding of 1848000 equity shares in a domestic company at the
agregate value of Rs. 14,53.00.
4.1 The Company has prepared current year account as per presentation
and disclosure requirement of Revised Schedule Vi to the Companies Act,
1956 applicable with effect from 1st April 2011. Previous year figures
have been reclassified/regrouped to conform to current year figure.
4.2 Due to commencement of new project at Mundra, current year's
figures are not comparable with previous year.
Mar 31, 2011
(Rs. Lakhs)
As at As at
1. Contingent Liabilities: 31.03.2011 31.03.2010
(i) Bank Guarantees
given to various Govt.Authorities/Others
(Margin money/Short Term Deposits Rs.
1.54 ; Previous year Rs. 1.54) 10.26 10.26
(ii) Bills discounted with Banks 9,42.24 1,001.72
(iii) Sales Tax
demands under appeal (Amount deposited
Rs.Nil; Previous year Rs. 0.18) - 0.18
(iv) Income Tax demands under appeal
(Amount deposited Rs.1.00 ;
Previous Year Rs.26.00) 1.00 143.97
(
v) Central Excise demand under appeal
(deposited Rs.85.58 ;
Previous year Rs. 85.58) 1,05.58 105.58
(vi) Others under appeal (deposited
Rs.12.00 ; Previous year Rs.12.00) 22.69 22.69
2. Loans & Advances include Rs. 75.00 to a Company under liquidation
against the use of an offce premises. The same is pending transfer in
favour of the Company as per the agreed terms.
3. Expenses/adjustment relating to previous years includes Commissions
on sales Rs.4.16 lacs (Previous Year Rs.NIL); Other Expenses Rs. 0.10;
(Previous Year Rs.1.39)
4. The asset of Rs.362.36 lacs (Previous year Rs.150.60 lacs)
recognised by the company as "MAT credit entitlement under ÃLoans and
Advances represents that portion of MAT liability, which can be
recovered and set off in subsequent years based on the provisions of
Section 115JAA of the Income Tax Act,1961. The management based on the
present trend of Profitability and also the future Profitability
projections, opines that there would be suffcient taxable income in
foreseeable future, which will enable the Company to utilize MAT Credit
Assets.
5. The Company has imported raw materials under Advance licence
against export obligiation. As on 31st March2011, The Company is
contingently liable to pay Custom duty of Rs.26.82 lacs in case of
non-fulflment of export obligation. The Company is expected to fullfill
the obligation within the scheduled date.
6. There were no outstanding dues to Micro, Small and Medium
Enterprises to the extent information available with the Company and
the payments in respect of such suppliers are made within the appointed
day.
7. (i) The previous years figures have been regrouped/rearranged
wherever necessary, to conform to this years classification.
(ii) Figures in brackets relate to previous year.
Mar 31, 2010
(Rs.Lakhs)
As at As at
31.03.2010 31.03.2009
1.Contingent Liabilities:
(i)Bank Guarantees given to
various Govt.Authorities/Others
(Margin money/Short Term
Deposits Rs.1.54 ;Previous
year Rs.1.54) 10.26 10.26
(ii)Bills discounted with Banks 1,001.72 661.01
(iii)Sales Tax demands under
appeal (Amount deposited Rs.0.18 ;
Previous year Rs.0.18) 0.18 0.18
(iv)Income Tax demands under
appeal (Amount deposited Rs.26.00 ;
Previous Year Rs.1.00) 143.97 1.00
(v)Central Kxcisc demand under
appeal (deposited Rs.85.58 ;
Previous year Rs.85.58) 105.58 105.58
(vi)Others und,er appeal
(deposited Rs.12.00;Previous
year Rs.12.00) 22.69 22.69
2.Loans &Advances include Rs.75.00 to a company under liqui
-dation against the use of an office premises.The same is
pending transfer in favour of the company as per the agreed
terms.
3.expenses Expenses/adjustment relating to previous years
includes (ravelling expense Rs.Nil.(Previous Year Rs.4.00);
Other Rs.1.39;(Previous Year Rs.4.66)
4.There were no outstanding dues to Micro,Small and Medium
Enterprises to the extent information available with the
company and the payments in respect of such suppliers are
made within the appointed day.
5. The appointment and remuneration paid to Mr. Akshat Gocnka
amounting to Rs. 0.46, w.c.f. 04.01.2010, is subject to the approval of
the Shareholders in the ensuing Annual General Meeting u/s 314 of The
Companies Act, 1956.
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