Mar 31, 2018
Note No. : 1 Significant accounting judgment , estimates and assumptions
The preparation of the financial statements requires the use of accounting estimates, which, by definition would seldom equal the actual results. Management also needs to exercise judgment and make certain assumptions in applying the Companyâ accounting policies and preparation of financial statements
The use of such estimates, judgments and assumptions affect the reported amounts of revenue, expenses, assets and liabilities including the accompanying disclosures and the disclosure of contingent liabilities. Uncertainty about these assumptions and estimates could result in outcomes that require a material adjustment to the carrying amount of assets or liabilities affected in the future periods.
Estimates and judgments are continually evaluated. They are based on historical experience and other factors including expectations of future events that may have a financial impact on the company and that are believed to be reasonable under the circumstances.
Estimates and assumptions
The Company has based its assumptions and estimates on parameters available when the financial statement were prepared. Existing circumstances and assumptions about future developments, however, may change due to market changes or circumstances arising that are beyond the control of the company. Such changes are reflected in the assumptions when they occur.
The key assumptions concerning the future and other key sources of estimation uncertainty at the balance sheet date that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are described below.
i) Depreciation and useful lives of property, plant and equipment: Property, plant and equipment are depreciated over the estimated useful lives of the assets, after taking into account their estimated residual value. Management reviews the estimated useful lives and residual values of the assets annually in order to determine the amount of depreciation to be recorded during any reporting period. The useful lives and residual values are based on the Companyâs historical experience with similar assets and take into account anticipated technological changes. The depreciation for future periods is adjusted if there are significant changes from previous estimates.
ii) Income Tax: Management judgment is required for calculation of income tax and deferred tax assets and liabilities. Deferred tax assets are recognized for unused losses (carry forward of prior yearsâ losses) and unused tax credit to the extent that it is probable that taxable profit would be available against which the losses could be utilized. The company review at each balance sheet date the carrying amount of deferred tax. the factor used in estimate may differ from actual outcome which may lead to significant adjustment in the amounts in financial statement.
Minimum Alternative Tax (MAT) credit is recognized as an asset only when and to the extent there is convincing evidence that the Company will pay normal income tax during the specified period; in the year in which the MAT credit becomes eligible to be recognized as an asset. The Company reviews the same at each balance sheet date and writes down the carrying amount of MAT credit entitlement to the extent there is no longer convincing evidence to the effect that the Company will pay normal income tax during the specified period
iii) Recoverability of trade receivable: Judgments are required in assessing the recoverability of overdue trade receivables and determining whether a provision against those receivables is required. Factors considered include the credit rating of the counterparty, the amount and timing of anticipated future payments and any possible actions that can be taken to mitigate the risk of non-payment.
iv) Provisions: Provisions and liabilities are recognized in the period when it becomes probable that there will be a future outflow of funds resulting from past operations or events and the amount of cash outflow can be reliably estimated. The timing of recognition and quantification of the liability require the application of judgment to existing facts and circumstances, which can be subject to change. Since the cash outflows can take place many years in the future, the carrying amounts of provisions and liabilities are reviewed regularly and adjusted to take account of changing facts and circumstances.
v) Impairment of non-financial assets: The Company assesses at each reporting date whether there is an indication that an asset may be impaired. If any indication exists, or when annual impairment testing for an asset is required, the Company estimates the assetâs recoverable amount. An assetâs recoverable amount is the higher of an assetâs or CGUâs fair value less costs of disposal and its value in use. It is determined for an individual asset, unless the asset does not generate cash inflows that are largely independent of those from other assets or groups of assets. Where the carrying amount of an asset or CGU exceeds its recoverable amount, the asset is considered impaired and is written down to its recoverable amount. In assessing value in use, the estimated future cash flows are discounted to their present value using pretax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset. In determining fair value less costs of disposal, recent market transaction are taken into account, if no such transactions can be identified, an appropriate valuation model is used.
vi) Estimation of Defined benefit obligations The companyâs obligation on account of gratuity and compensated absences is determined based on actuarial valuation.
The companyâs obligation on account of gratuity and compensated absences is determined based on actuarial valuation.
An actuarial valuation involves making various assumptions that may differ from actual developments in the future. These include the determination of the discount rate, future salary increases and mortality rates. Due to the complexities involved in the valuation and its long-term nature, a defined benefit obligation is highly sensitive to changes in these assumptions. All assumptions are reviewed at each financial year end.
The parameter must subject to change is the discount rate. In determining the appropriate discount rate , the management considers the interest rate of government bonds in currencies consistent with currencies of the post employment benefit obligation.
The mortality rate is based on publically available tables. Those mortality tables tend to change only at interval in response to demographic changes. Future salary increases and gratuity increases are based on expected inflation rates.
vii) Impairment of financial assets: The impairment provisions for financial assets are based on assumptions about risk of default and expected cash loss rates. The Company uses judgment in making these assumptions and selecting the inputs to the impairment calculation, based on Companyâs past history, existing market conditions as well as forward looking estimates at the end of each reporting period.
viii) Fair value measurement of financial instruments: The key assumptions concerning the future and other key sources of estimation uncertainty at the reporting date that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year. The Company based its assumptions and estimates on parameters available when the financial statements were prepared. Existing circumstances and assumptions about future developments, however, may change due to market changes or circumstances arising that are beyond the control of the Company. Such changes are reflected in the assumptions when they occur.
ix) Material uncertainty about going concern: In preparing financial statements, management has made an assessment of Companyâs ability to continue as a going concern. Financial statements are prepared on a going concern basis. The Management is aware, in making its assessment, of material uncertainties related to events or conditions that may cast significant doubt upon the Companyâs ability to continue as a going concern.
Note no.: 31
a) All the Current Assets, Loans and Advances, in the opinion of the Board, have a value on Realization which in the ordinary course of business shall at least be equal to the amount at Which it is stated in the Balance Sheet.
b) In terms of Ind AS 36 on impairment of assets, there was no impairment indicators exist as of reporting date as per the internal management estimates done and hence no impairment charge is recognized during the year under review.
c) Segment Information:
The Managing Director has been identified as the Companyâs Chief Operating Decision -Maker (CODM) as defined by IND AS- 108 Operating Segments. The Chief Operational Decision Maker monitors the operating results of its business Segments separately for the purpose of making decisions about resource allocation and performance assessment. Segment performance is evaluated based on profit or loss and is measured consistently with profit or loss in the financial statements.
Employee Benefits :
As per Indian Accounting Standard - 19 âEmployees Benefitsâ, the disclosures of Employees Benefits are as follows:
Defined Contribution Plan:
Employee benefits in the form of Provident Fund are considered as defined contribution plan. The contribution to the respective fund are made in accordance with the relevant statute and are recognized as expense when employees have rendered service entitling them to the contribution, The contribution to defined contribution plan, recognized as expense in the statement of Profit and Loss are as under :
Gratuity
The gratuity plan is governed by the payment of Gratuity Act 1972, under the said Act an employee who has completed five years of service is entitled to specific benefit. The gratuity plan is being maintained by LIC for the company which provides payment as per the Government of India notification time being in force, to employees at retirement death, incapacitation or termination of employment.
Leave Travel Concession:
(i) Rs.NIL have been paid as LTC (All India) claimed (Previous Year Rs.3.06 lacs).
(ii) Rs.NIL lacs have been paid as LTC (Home Town) claimed(Previous Year Rs.1.21 lacs).
d) Contingent Liabilities:-
Claim against the company not acknowledged as debts are Rs.396.36 lacs (PY Rs.434.72 lacs) which includes:-
1. Land Cases:- Liability for the land compensation cases pending the outcome of appeal before Honâble High Court, Allahabad. However, decision of District Court, Bulandshahr was against the company and the figures have been computed on the basis of District Court order:Rs.12.12 lacs including interest (PY.Rs.12.12 lacs including interest).
2. Staff Litigations:- Litigation is pending in the cases filed against the company by the then staff i.e. Mr. Bhaskar Gupta & (Col.) V. K. Sethi for the subsistence allowance & salary respectively: Rs.2.55 lacs in total (PY Rs. 38.26 lacs in total)
3. Income Tax: Income tax authority raised the demand of penalty u/s 271 (1) (c) of income tax act 1961. The company being not agreed with demand preferred an appeal before the appellant authority which is pending on the date of balance sheet. The amount in dispute is Rs. 34.61 lacs excluding interest ( Previous year Rs.34.61 lacs excluding interest)
4. Custom Duty demand: Custom duty demand order 08.03.2016 from Commissioner Central Excise against the appeal of original demand of Rs.192.81 lacs and confirmed the demand and penalty with further interest confirmed. The company not agreed with the order, preferred an appeal before the Custom Excise & Service Tax Appellate Tribunal, Allahabad. The amount in dispute is Rs.542.54 lacs considering interest up to 31.03.2017. Since company has already provided Rs.192.81 lacs on the basis of original demand in the books of accounts. Therefore difference of Rs.349.73 Lacs further not considered for provision as the matter is pending in appellate tribunal.
e)Governments Grants
(i) Capital Grant for Rs. 311 Lakhs (Rupees Three Hundred & Eleven Lakhs) was sanctioned by Government of India during the year 2006-2007 for setting up manufacturing facilities and infrastructure improvement for manufacture of production of Zinc dispersible Tablets. Interest earned on the grant received for manufacturing facilities and infrastructure improvement for manufacturing of production of Zinc dispersible Tablets has been credited to the Grant account as per terms of Grant. The manufacturing facility completed in June 2009.
Above balance of Rs.11.08 lacs include TDS recoverable of Rs.1.35 lacs on interest earned on grant.
(ii) Company has received capital grant of Rs.101.72 lacs (Rs.58.00 lacs in the financial year 2010 11 and Rs.43.00 lacs in the financial year 2011-12) from Govt. of India for setting up of R&D facilities for trial production of Iron Folic Acid Dispersible tablets. Interest earned on capital grant received for the Iron Folic Acid project has been credited to the grant account as per the terms of the grant. Iron Folic Acid project is under progress and is yet to be commissioned. However, necessary approvals on this part from Govt. of India will be taken after the completion of the project. The company is hopeful for getting the extension for excess amount spent on
(iv) Company has received capital/revenue grant of Rs. 476.35 lacs (2010-11) from Govt. of India for setting up of manufacturing and infrastructure facility Up gradation for process Optimization and Quality Improvement of Oral Polio Vaccine Formulation Facility. Interest earned on capital grant received for the infrastructure facility Up gradation for process Optimization and Quality Improvement of Oral Polio Vaccine Formulation Facility has been credited to the grant account as per the terms of the grant. Infrastructure facility up gradation for process Optimization and Quality Improvement of Oral Polio Vaccine Formulation Facility project is under progress and is yet to be commissioned. However, necessary approvals on this part from Govt. of India will be taken after the completion of the project. The project was scheduled to be completed by 31st May 2011.
f) Under Micro, Small and Medium Enterprises Development Act, 2006, creation disclosures required to
be made relating to such enterprises. In view of the insufficient information from supplierâs regarding their coverage under the said Act, no disclosure has been made in the accounts. However, in view of the management the impact of interest if any, that may be payable in accordance with the provision of the Act is not expected to be material.
g) The Ministry of Health and Family Welfare (Trade Receivable) has deducted charges for late delivery amounting Rs.645.42 lacs which has not been accounted for in the books of accounts as the same is not sustainable in the opinion of the management and the company is pursuing the matter with the concerned Ministry for the payment of these deductions.
h) Any gains or loss arising on account of exchange difference either on settlement or on translation is accounted for in the Statement of Profit & Loss, In this regard during the year, company has booked net Profit Rs.40.03 lacs. (P.Y. loss of Rs.74.35 lacs).
i) There is stock lying in the store which is issued to the functional division and return back in the sore department at the adhoc value of the Rs.12.72 lakhs
(i) Parties where control exists NIL
(ii)Other related parties where transaction have taken place during the year
a. Key Management Personnel (KMP):
1) Prof. G.Padmanaban Chairman
2) Sh.Chandra Prakash Goyal Managing Director
3) Dr. Y. K. Gupta Director
4) Dr. Alka Sharma Director
5) Sh. Roshan Lal Director
6) Dr. Chitra Mandal Director
7) Dr. Kanury Rao Director
8) Dr. Mohd. Aslam Director
9) Dr. SudhanshuVarati Director
10) Mr. Uttam Kumar Singh (C.F.O)( upto 09.03.2018)
11) Mr. Sandip Kumar Lal Company Secretary
P.) Deferred Tax Assets in respect of Unabsorbed Depreciation Losses & Unabsorbed Business Losses has been recognized by the Company. The management is of the view that company will realize the benefits of those recognized deductable difference, carry forward losses and portion of unused tax credit based on project in hand and projected future taxable income from projects in hand.
Note No. 2 - Financial Risk Framework
The Companyâs financial liabilities comprise borrowings, capital creditors and trade and other payables. The main purpose of these financial liabilities is to finance the Companyâs operations. The Companyâs financial assets include Loans, trade and other receivables, cash and cash equivalents.
The Company is exposed to market risk, credit risk and liquidity risk. The Companyâs senior management overseas the management of these risks. The Companyâs senior management provides assurance that the companyâs financial risks activities, are governed by appropriate policies and risk objectives. All derivative activities for risk management purpose are carried out by teams that have appropriate skills, experience and supervision. The Board of Directors reviews and agrees policies for managing g each of these risks, which are summarized below:
A. Market risk
Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market price. Market risk comprises three types of risk interest rate risk, currency risk and other risks, such as regulatory risk and commodity price risk.
i) Interest rate risk
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. The companyâs exposure to the risk of changes in market interest rates relates primarily to the companyâs borrowing obligations with floating interest rates.
Sensitivity
Almost 100% of the Companyâs borrowings are linked to SBI base rates of the banks. With all other variables held constant, the following table demonstrates the Impact of change in interest rate on borrowing cost on floating rate portion of loans.
ii) Foreign currency risk
Foreign currency risk is the risk that the fair value or future cash flows of an exposure will fluctuate because of changes in foreign exchange rates, The companyâs exposure to the risk of changes in foreign exchange rates relates primarily to the exports made by the company which are made during the year however same is very negligible as compare to total turnover.
Sensitivity
1% increase or decrease in foreign exchange rates will have no material impact on profit.
B Credit risk
Credit risk is the risk that counterparty will default on its obligations under a Contractual arrangement leading to a financial loss. The companyâs sales are mostly to Central Government, thereby the credit default risk is significantly mitigated.
Financial assets are written off when there is no reasonable expectation of recovery, however, the company continues to attempt to recover the receivables. Where recoveries are made, these are recognized in the statement of profit and loss.
Following table summarizes the change in loss allowances measured using life time expected credit loss model. No significant changes in the estimation techniques or assumption were made during the period.
Balances with Banks - Other Financial Assets
Credit risk from balances with banks is managed in accordance with Companyâs policy. Company considers factors such as track record, size of the institution, market reputation and service standards to select the banks with which term deposits are maintained. Generally, term deposits are maintained with banks with which Company has also availed borrowings.
The company âs maximum exposure to credit risk for the components of the balance sheet as at 31st March , 2018 , 31st March , 2017 and 1st April 2016 is the carrying amounts as stated under Note No.18â.
C Liquidity risk
i) Liquidity Risk Management
Liquidity risk is the risk that a company may encounter difficulties in meeting its obligations associated with financial liabilities that are settled by delivering cash or other financial assets. The Companyâs objective is to maintain optimum levels of liquidity to meet its cash and its collateral requirements. The companyâs Management is responsible for liquidity, funding as well as settlement. Management monitors the companyâs net liquidity position through rolling, forecast on the basis of expected cash flows
Note No. :3 - Capital Management a) Risk Management
For the purpose of the Companyâs capital management, capital includes issued equity capital, securities premium and all other equity reserves attributable to the equity shareholder of the Company. The Primary objective of capital management is to maximize shareholder value and also to maintain an optimum capital structure and to safeguard its ability to continue at a going concern.
The Companyâs Capital management objectives are to maintain equity including all reserve to protect economic viability and to finance any growth opportunities that may be available in future so as to maximize shareholder value
The Company manages its capital structure and makes adjustments in the amount of dividends, return on capital to shareholders, issue new shares or sell assets to reduce debts.
b) Loan Covenants:
In order to achieve this overall objective the Companyâs capital management, amongst other things, aims to ensure that it meets financial covenants attached to the interest bearing loans and borrowing that define capital structure requirements. The company has compiled with these covenants and there have been no breaches in the financial covenants of any interest - bearing loans and borrowings.
No changes were made in the objectives, policies or processes for managing capital during the year ended 31stMarch 2018 and 31st March, 2017.
Note No. 3
On First Time adoption of IND AS Explanation of transition to Ind AS
These financial statements for the year ended 31stMarch 2018. are the first financial statements, the company has prepared in accordance with Ind AS.
Accordingly, the Company has prepared financial statements; the company has prepared financial statements which comply with Ind As applicable for year ended 31st March 2018, together with the comparative figures for the year ended 31st March 2017, as described in the summary of significant accounting policies.
In preparing these financial statements, the companyâs opening balance sheet was prepared as at 1st April 2016, i.e the date of transition to Ind AS
This note explains the principal adjustments made by the company and an explanation on how the transition from the previous GAAP to Ind AS has affected its financial statements, including the balance sheet as at 1st April 2016, and the financial statements for the year ended 31st March 2017.
Set our below are the applicable Ind AS 101 optional exemptions and mandatory exceptions applied in the transition from the previous GAAP to Ind AS.
Deemed Cost
a) The Company has elected to continue with carrying value of all property, plant and equipment under the previous GAAP as deemed cost as at the transition date i.e. 1st April 2016. Under the previous GAAP, property, plant and equipment were stated at their original cost (net of accumulated depreciation, amortization and impairment), if any.
b) The Company has elected to continue with the carrying value of Capital work in progress as recognized under the previous GAAP as deemed cost as at the transition date.
c) The Company has elected to continue with the carrying value for intangible assets (computer software) as recognized under the previous GAAP as deemed cost as at the transition date, unde
the previous GAAP, computer software was stated at its original cost, net of accumulated amortization.
Estimates
The estimates as at 1st April 2016 and as at 31st March 2017 are consistent with those made for the same dates in accordance with Indian GAAP (after adjustments to reflect any differences in accounting policies)
Classification and Measurement of Financial Assets
Ind AS 101 requires the de-recognition requirements of Ind AS 109 to be applied prospectively to transactions occurring on or after the date of transition.
Therefore, the company has not recognized financial assets and liabilities under Ind AS which were derecognized under the previous GAAP as a result of a transaction that occurred before the date of transition.
Footnotes to the reconciliation of equity as at 1st April 2016 and 31st March, 2017 and Statement of profit and Loss for the year ended 31st March 2017
a) Property plant and equipment
Under Ind AS the Company has elected to opt for cost model with respect to property, plant and equipments, capital work in progress and computer software.
b) Provision for expected credit loss on trade receivables
The Company has made impairment for trade receivable as per simplified approach based on the life time expected credit loss model. No impact on the transition date is recognized in opening reserves and changes thereafter in Profit and Loss Account.
c) Defined benefit Liabilities
As per Ind AS 19 - Employee Benefits, actuarial losses of Rs.-0.78 lakhs are recognized in other comprehensive income as compared to being recognized in the statement of profit and loss under previous GAAP. Consequently the tax effect of Rs.-0.26 lakhs has also been recognized in other comprehensive income under Ind As instead of profit and loss.
d) Deferred tax
Previous GAAP required differed tax accounting using the income statement approach, which focuses on differences between taxable profits and accounting profits for the year 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. The application of Ind AS 12 approach has resulted in recognition of deferred tax on new temporary differences which were not required under the previous GAAP. Moreover, carry forward of unused tax credits are to be treated as deferred tax assets which was earlier considered as other non- current non- financial assets.
In addition, the various transitional adjustments lead to temporary differences and consequently deferred tax adjustments have been recognized in correlation to the underlying transaction in retained earnings.
The net impact on deferred tax Assets has increased by Rs.0.31 lakhs as on transition date.
e) Interest Income
The previous GAAP required the recognition of revenue from interest on time proportion basis. However, Ind As requires interest on financial assets to be recognized using the effective interest rate method.
f) Cash Flow Statement
The transition from the previous GAAP to Ind AS has not material impact on Cash Flow Statement.
g) Total Comprehensive Income and Other Comprehensive Income
Under the previous GAAP, the Company did not present total comprehensive income and other comprehensive income. Hence, it has reconciled previous GAAP profit to profit as per Ind AS, Further, the previous GAAP profit is reconciled to other comprehensive income and total comprehensive income as per Ind AS.
Note:- Fair Value Hierarchy
The fair value of the financial assets and financial liabilities are included at the amount at which the instrument could not be exchanged in a current transaction between willing parties, other than in a forced or liquidation sale. Fair value of cash and cash equivalent, bank balances other than cash and cash equivalents, trade and other receivables, loans and other current financial assets, short term borrowing from banks and financial institution, trade and other payables and other current financial liabilities approximate their carrying amounts due to the short term maturities of these instruments.
Note: 5
The Previous year figure as on date of transition have been reworked, regrouped, rearranged and reclassified wherever necessary amounts and other disclosures for the preceding year including figures as at the date of transition are included as an integral part of the current year financial statements and are to be read in relation to the amounts and other disclosers relating to the current year.
Mar 31, 2015
A. Estimated amount of contract remaining to be executed on
capital/revenue account and not provided for (including revenue
commitment of letter of credits, but excluding capital commitment
relating to various grants) - Rs.3066.20 lacs (PY Rs.3174.49 lacs).and
capital commitment on account of Grants Rs. NIL (PY Rs. 6.26).
b. Contingent Liabilities:-
Claim against the company not acknowledged as debts are Rs.742.52 lacs
(PY Rs. 720.64 lacs) which includes:-
i. Land Cases:- Liability for the land compensation cases pending the
outcome of appeal before Hon'ble High Court, Allahabad. However,
decision of District Court, Bulandshahr was against the company and the
figures have been computed on the basis of District Court order:
Rs.587.54 lacs including interest (PY. Rs. 573.08 lacs including
interest).
ii. Administrative-cum-Housinq Complex:- Case is filed by M/s. Uppal
Engineering Co. Pvt. Ltd. against civil work awarded for
Administrative-cum-Housing Complex before Arbitrator. Arbitrator
decided in favor of appellant. Company has filed an appeal before the
competent court against Arbitration award figures have been computed on
the basis of award Rs 80.31 lacs including interest (PY. Rs. 74.12 lacs
including interest).
iii. Staff Litigations:- Litigation is pending in the cases filed
against the company by the then staff i.e. Mr. Bhaskar Gupta & (Col.)
V. K. Sethi for the subsistence allowance & salary respectively:
Rs.40.06 lacs in total (PY Rs. 38.83 lacs in total).
iv. Income Tax: Income tax authority raised the demand of penalty u/s
271 (1) (c) of income tax act 1961. The company being not agreed with
demand preferred an appeal before the appellant authority which is
pending on the date of balance sheet the amount in dispute is Rs. 34.61
lacs excluding interest ( Previous year Rs.34.61 lacs excluding
interest).
c. In the opinion of the Board of Directors, Current Assets, Loans and
Advances shall have the value on realization, in the ordinary course of
the business at least equal to the amount at which they are stated in
the Balance Sheet.
d. Request for confirmation of balances of Trade Receivables and Trade
Payables were sent. Confirmation of balances received from few cases.
These confirmations are subject to reconciliation and consequential
adjustment which in the opinion of management is not material.
e. Any gains or loss arising on account of exchange difference either
on settlement or on translation is accounted for in the Statement of
Profit & Loss, In this regard during the year, company has booked net
exchange gain of Rs. (-129.10) lacs. (P.Y. Rs. 273.03 lacs).
f. Disclosure as per Accounting Standard 15 (Accounting for Retirement
benefit in the Financial Statements of Employer) is as under: -
The Accruing liability according to the actuarial valuation for the
Leave Encashment is Rs.280.66 lacs (PY Rs. 253.97 lacs) & half pay
leave is Rs.36.62 lacs (PY Rs. 29.71 lacs).
Leave Travel Concession:
a. Rs.5.54 lacs have been paid as LTC (All India) claimed (Previous
Year Rs. 5.42 lacs).
b. Rs.0.50 lacs have been paid as LTC (Home Town) claimed (Previous
Year Rs. 0.42 lacs).
Gratuity: Yearly payment is made to LIC to maintain the Gratuity
Account of the Employees with Life Insurance Corporation of India.
BIBCOL has no Gratuity Trust so the Actuarial Valuation has not been
made
g. In compliance of Accounting Standard 17 (AS-17) on "Segment
Reporting" as notified under Companies
Accounting Standard Rules, 2006, the company has adopted following
business segment as the reportable
segments:
i. Oral Polio Vaccine
ii. Zinc Tablets
There are no geographical segments.
The disclosures of segment wise information is given as per Annexure-A.
h. As per Accounting Standard 18 on "Related party Disclosure "are as
follows
Dr. M.K Bhan Chairman
Sh.Sreeshan Raghavan Managing Director
Dr. Rajesh Kapur Director
Prof. N.K Ganguly Director
Prof. Dr. B L Jailkhani Director
Dr. Y. K. Gupta Director
Dr. Rakesh Kumar Director
There is no related party transaction during the year.
i. Deferred Tax: In compliance of Accounting Standard 22 on
"Accounting for taxes on Income" as notified under Companies Accounting
Standard Rules, 2006, the company has provided accumulated net deferred
tax liability in respect of timing difference as on 31st March, 2015
amounting to Rs. 27.601 lacs (Previous year net deferred tax asset Rs.
14.31 lacs). Net deferred tax Expense for the year of Rs. 41.91 lacs
(Previous Year Rs. 460.32 lacs) has been charged to Profit & Loss
account. The item-wise details of deferred tax liability and assets are
as under.
j. Provision for current year's Income Tax as well as Minimum
Alternative Tax (MAT) u/s 115 JB of Income Tax Act, 1961 has been made
for want of taxable/book profit.
k. The company has initiated the process of identifying the parties and
obtaining information with respect to parties, if any, covered under
the Micro, Small and Medium Enterprises Development Act, 2006 (or the
"Act"). The Company would account for significant interest obligations
subsequently, if any. Accordingly required disclosures in this regard
have not been given in the current year.
l. Governments Grants
(i) Capital Grant for Rs. 311 Lakhs (Rupees Three Hundred & Eleven
Lakhs) was sanctioned by Government of India during the year 2006-2007
for setting up manufacturing facilities and infrastructure improvement
for manufacture of production of Zinc dispersible Tablets. Interest
earned on the grant received for manufacturing facilities and
infrastructure improvement for manufacturing of production of Zinc
dispersible Tablets has been credited to the Grant account as per terms
of Grant. The manufacturing facility completed in June 2009.
(ii) For the advancement of manufacturing facilities and infrastructure
improvement for manufacture of production of Zinc dispersible tablets.
A further Capital Grant for Rs. 137.04 lakhs is sanctioned by
Government of India, out of which Rs 74.86 Lakhs received in 2009-2010,
Rs 26.60 lakhs received in 2010-11 and Rs 35.58 lakhs received in
2011-12. Interest earned on the grant received for the advancement of
manufacturing facilities and infrastructure improvement for manufacture
of production of Zinc dispersible tablets has been credited to the
grant account as per the terms of the grant. Details are provided as
under:
-(iii) Company has received capital grant of Rs. 101.72 lacs (Rs.58.00
lacs in the financial year 2010-11 and Rs.43.00 lacs in the financial
year 2011-12) from Govt, of India for setting up of R&D facilities for
trial production of Iron Folic Acid Dispersible tablets. Interest
earned on capital grant received for the Iron Folic Acid project has
been credited to the grant account as per the terms of the grant. Iron
Folic Acid project is under progress and is yet to be commissioned.
However, necessary approvals on this part from Govt, of India will be
taken after the completion of the project. The company is hopeful for
getting the extension for excess amount spent on revenue head. The
project was scheduled to be completed upto 28.09.2013. Details of Grant
are given as under-:
(iv) Company has received capital grant of Rs. 137.84 lacs (Rs.97.21
lacs in the financial year 2010-11 and Rs,40.63 lacs in the financial
year 2011-12) from Govt, of India for setting up of R&D facilities for
formulation development of Micronutrient - Vitamin mix tablets.
Interest earned on capital grant received for the Micronutrient -
Vitamin mix project has been credited to the grant account as per the
terms of the grant. Micronutrient - Vitamin mix project is under
progress and is yet to be commissioned. However, necessary approvals on
this part from Govt, of India will be taken after the completion of the
project. The project was scheduled to be completed upto 29.03.2012
Details of Grant are given as under-:
(vi) During the year 2010-11 the Company received capital grant of Rs
337.87 lacs from Govt, of India for setting up of pilot plant for
Diarrhea Management Kit. Interest earned on capital grant received for
the Diarrhea Management Kit has been credited to the grant account as
per the terms of the grant. Diarrhea Management Kit is under progress
and is yet to be commissioned of the grant. However, necessary
approvals on this part from Govt, of India will be taken after the
completion of the -project. The project was scheduled to be completed upto 17.9.2012 the request extension for completion of project shall be made in due course of time. Details of Grant are given as under-:
(vii) During the year 2012-13 the Company received capital grant of Rs.
132.30 lacs from Govt, of India for setting up of R&D facilities for
trial production of SAM. Interest earned on capital grant received for
the SAM project has been credited to the grant account as per the terms
of the grant. SAM project is under progress and is yet to be
commissioned. Upto 31.03.2014 Expenditure of Rs.5.29 lacs and Rs.3.32
lacs have been incurred over and above the released expenditure of
Equipment and Human Resource Development, respectively, however,
necessary approvals on this part from Govt, of India will be taken
after the completion of the project. The project was scheduled to be
completed up to 26.10.2014 as per the letter of extension being issued
by the department Details of Grant are given as under-:
m. Out of amount of Rs. 71.23 lacs shown as Advance Tax/TDS
recoverable, the amount of Rs.60.80 lacs pertains to the Income tax
refund claimed and pending for the assessment year 2006-07 to
2010-2011. The assessments stand completed up to the assessment year
2012-13.
n. On 20 January, 2014, the company was sanctioned working capital loan
of Rs. 70.00 crores and foreign letter of credit limit of Rs.80.00
crores by Canara Bank, Green Park Extn., and New Delhi. The working
capital loan has been sanctioned at interest rate of 13.95% p.a. (base
rate 10.20% 3.75%) (secured by way of first pari-passu charge on all
fixed assets, both present and future (excluding Land & Building and
Vehicles), stocks and book debts, whether now lying loose or in cases
or which are not lying or stores in or whether in course of transit.
o. Diminution in the value of below detailed assets has been
provided:-
Capital Work in Progress - The Administrative-cum-housing complex has
been shown under the head Capital Work In Progress. The work has been
suspended and has been kept in abeyance. The impairment in the value
has been determined on the basis of valuation done by certified valuer
as on 31.03.2006 and accounted for accordingly. The further impairment
is to be determined.
p. In terms of AS 28, the company is in the process of forming a
committee to look into the further impairment of the fixed assets.
q. The company is in process to forming a policy in regard to
identifying of slow/non moving/obsolete items. Necessary entries will
be made of the time of the identification.
r. The company has adopted RBI Reference Rates of foreign exchange as
on 31.03.2015 for the valuation of the imported raw material and
packing material as well as gain/ loss on account of exchange rate
variation.
s. Previous year's figures have been
re-named/re-classified/regrouped/re-arranged wherever considered
necessary to make them comparable.-
Mar 31, 2014
A) Estimated amount of contract remaining to be executed on
capital/revenue account and not provided for (including revenue
commitment of letter of credits, but excluding capital commitment
relating to various grants) - Rs.3174.49 lacs (PY Rs.958.58 lacs).and
capital commitment on account of Grants Rs. 6.26 lacs (PYRs. NIL)
b) Contingent Liabilities (excluding cases pending before authorities
of income tax and sales tax etc):-
Claim against the company not acknowledged as debts are Rs.686.03 lacs
(PY Rs. 657.38
lacs) which includes:- i. Land Cases:- Liability for the land
compensation cases pending the outcome of appeal before Hon''ble High
Court, Allahabad. However, deci sion of District Court, Bulandshahr was
against the company and the figures have been computed on the basis of
District Court order: Rs.573.08 lacs including interest (PYRs. 558.62
lacs including interest). ii. Administrative-cum-Housinq Complex:-
Case is filed by M/s. Uppal Engineering Co. Pvt. Ltd. against civil
work awarded for Administrative-cum-Housing Complex before Arbitrator.
Arbitrator decided in favor of appellan t. Company has filed an appeal
before the competent court against Arbitration award figures have been
computed on the basis of award Rs 74.12 lacs including interest (PY.
Rs. 67.93 lacs including interest)
iii. Staff Litigations:- Litigation is pending in the cases filed
againstthe company by the then staff i.e. Mr. Bhaskar Gupta & (Col.) V.
K. Sethi for the subsistence allowance & salary respectively: Rs.38.83
lacs in total (PY Rs. 30.83 lacs in total)
c) In the opinion of the Board of Directors, Current Assets, Loans and
Advances shall have valued on realization, in the ordinary course of
the business at least equal to the amount at which they are stated in
the Balance Sheet.
d) Request for confirmation of balances of Trade Receivables and Trade
Payables were sent. Confirmation of balances received from few cases.
T hese confirmations are subject to reconciliation and consequential
adjustment which in the opinion of management is not material.
e) Any gains or loss arising on account of exchange difference either
on settlement or on translation is accounted for in the Statement of
Profit & Loss, In this regard during the year, company has booked net
exchange gain of Rs. 273.03 lacs. (PY Rs. 35.59 lacs)
f) Disclosure as per Accounting Standard 15 (Accounting for Retirement
benefit in the Financial Statements of Employer) is as under:-
The Accruing liability according to the actuarial valuation for the
Leave Encashment is Rs.253.97 lacs (PY Rs. 227.61 lacs) & half pay
leave is Rs.29.71 lacs (PY Rs. 23.28 lacs).
Leave Travel Concession:
a. Rs.5.42 lacs have been paid as LTC (All India) claimed (Previous
Year Rs. 3.35 lacs).
b. Rs.0.42 lacs have been paid as LTC (Home Town) clai med (Previous
Year Rs. 0.30 lacs).
Gratuity: Yearly payment is made to LIC to maintain the Gratuity
Account of the Employees with Life Insurance Corporation of India.
BIBCOL has no Gratuity Trust so the Actuarial Valuation has not been
made
g) In compliance of Accounting Standard 17 (AS-17) on "Segment
Reporting" as notified under Companies Accounting Standard Rules, 2006,
the company has adopted following business segment as the reportable
segments:
i) Oral Polio Vaccine
ii) Zinc Tablets
There are no geographical segments.
The disclosures of segment wise information is given as per Annexure-A.
h) As per Accounting Standard 18 on "Related party Disclosure "are as
follows
1) Dr. M.KBhan Chairman
2) Sh.Sreeshan Raghavan Managing Director
3) Dr. Rajesh Kapur Director
4) Ms. Anuradha Mitra Director
5) Prof. N.K Ganguly Director
6) Prof. Dr. B L Jailkhani Director
7) Dr.Y. K.Gupta Director
8) Dr. Rakesh Kumar Director
9) Sh. K. Sreenivasulu Director
There is no related party transaction during the year.
i) In compliance to Accounting Standard 20 on "Earning per share", the
calculation of Earning Per Share (Basic and diluted) is as under:
j) Deferred Tax: In compliance of Accounting Standard 22 on "Accounting
for taxes on Income" as notified under Companies Accounting Standard
Rules, 2006, the company has provided accumulated net deferred tax
assets in respect of timing difference as on 31st March, 2014 amounting
to Rs. 14.31 lacs (Previous year net deferred tax asset Rs. 474.63
lacs). Net deferred tax Expense for the year of Rs. 460.32 lacs
(Previous Year Rs. 185.79 lacs) has bee n charged to Profit & Loss
account. The item- wise details of deferred tax liability and assets
are as under.
I) Provision for current year''s Income Tax as well as Minimum
Alternative Tax (MAT) u/s 115 JB of Income Tax Act, 1961 has been made
for want of taxable/book profit.
m) The company has initiated the process of identifying the parties and
obtaining information with respect to parties, if any, covered under
the Micro, Small and Medium Enterprises Development Act, 2006 (or the
"Act"). The Company would account for significant interest obligations
subsequently, if any. Accordingly required disclosures in this regard
have not been given in the current year
n) Governments Grants
i. Capital Grant for Rs. 311 Lakhs (Rupees Three Hundred & Eleven
Lakhs) was sanctioned by Government of India during the year 2006-2007
for setting up manufacturing facilities and infrastructure improvement
for manufacture of production of Zinc dispersible Tablets. Interest
earned on the grant received for manufacturing facilities and
infrastructure improvement for manufacturing of production of Zinc
dispersible Tablets has been credited to the Grant account as per terms
of Grant. The manufacturing facility completed in June 2009.
Above balance of Rs. 18.67 lacs does not include T D.S. recoverable for
Rs. 1.35 lacs on interest earned on Grant. The same shall be included
as and when it is received from Income Tax Department.
ii. For the advancement of manufacturing facilities and infrastructure
improvement for manufacture of production of Zinc dispersible tablets.
A further Capital Grant for Rs. 137.04 lakhs is sanctioned by
Government of India, out of which Rs 74.86 Lakhs received in 2009-2010,
Rs 26.60 lakhs received in 2010-11 and Rs 35.58 lakhs received in
2011-12. Interest earned on the grant received for the advancement of
manufacturing facilities and infrastucture improvement for manufacture
of production of Zinc dispersible tablets has been credited to the
grant account as per the terms of the grant. Deta''ls are provided as
under:
Above Negative balance of Rs. 0.42 lacs does not include T.D.S.
recoverable for Rs. 0.71 lacs on interest earned on Grant. The same
shall be included as and when it is received from Income Tax
Department. The advancement in the facility was completed in September,
2012.
iii. Company has received capital grant of Rs. 101.72 lacs (Rs.58.00
lacs in the financial year 2010-11 and Rs.43.00 lacs in the financial
year 2011-12) from Govt, of India for setting up of R&D facilities for
trial production of Iron Folic Acid Dispersible tablets. Interest
earned on capital grant received for the Iron Folic Acid project has
been credited to the grant account as per the terms of the grant. Iron
Folic Acid project is under progress and is yet to be commissioned.
Upto 31.03.2014 Expenditure of Rs.0.21 lacs and Rs.30.59 lacs have been
incurred over and above the released expenditure of Contingency and
Human Resource Development, respectively, however, necessary approvals
on this part from Govt, of India will be taken after the completion of
the project. The company is hopeful for getting the extension for
excess amount spent on revenue head. The project was scheduled to be
completed upto 28.09.2013 the request extension for completion of
project shall be made in due course of time. Details of Grant are given
as under-:
Above balance of Rs. 4.55 lacs include T.D.S. recovered on interest
earned on Grant on receipt of the T.D.S. from the Department.
iv. Company has received capital grant of Rs.137.84 lacs (Rs.97.21 lacs
in the financial year 2010-11 and Rs,40.63 lacs in the financial year
2011-12) from Govt, of India for setting up of R&D facilities for
formulation development of Micronutrient - Vitamin mix tablets.
Interest earned on capital grant received for the Micronutrient -
Vitamin mix project has been credited to the grant account as per the
terms of the grant. Micronutrient - Vitamin mix project is under
progress and is yet to be commissioned. Upto 31.03.2014 Expenditure of
Rs.13.684 lacs has been incurred over and above the released
expenditure of Human Resource Development, however, necessary approvals
on this part from Govt, of India will be taken after the completion of
the project. The project was scheduled to be completed upto 29.03.2012
the request extension for completion of project shall be made in due
course of time. Details of Grant are given as under-:
Above balance of Rs.66.18 lacs include T.D.S. recoverdon interest
earned on Grant on receipt of the T.D.S. from the Department.
v. Company has received capital/revenue grant of Rs. 476.35 lacs
(2010-11) from Govt, of India for setting up of manufacturing and
infrastructure facility Up gradation for process Optimization and
Quality Improvement of Oral Polio Vaccine Formulation Facility.
Interest earned on capital grant received for the infrastructure
facility Up gradation for process Optimization and Quality Improvement
of Oral Polio Vaccine Formulation Facility has been credited to the
grant account as per the terms of the grant. Infrastructure facility up
gradation forprocess Optimization and Quality Improvement of Oral Polio
Vaccine Formulation Facility project is under progress and is yet to be
commissioned. Upto 31.03.2014 Expenditure of Rs.1.44 lacs and Rs.9.60
lacs have been incurred over and above the released expenditure of
Contingency and Overheads, respectively, however, necessary approvals
on
this part from Govt, of India will be taken after the completion of the
project. The project was scheduled to be completed upto 31st May 2011
the request extension for completion of project shall be made in due
course of time.
Above balance of Rs. 355.09 lacs include T.D.S. recovered on interest
earned on Grant on receipt of the T.D.S. from the Department.
vi. During the year 2010-11 the Company received capital grant of Rs
337.87 lacs from Govt, of India for setting up of pilot plant for
Diarrhea Management Kit. Interest earned on capital grant received
forthe Diarrhea Management Kit has been credited to the grant account
as per the terms of the grant. Diarrhea Management Kit is under
progress and is yet to be commissioned of the grant. Upto 31.03.2014
Expenditure of Rs.80.94 lacs has been incurred over and above the
released expenditure of Human Resource Development, however, necessary
approvals on this part from Govt, of India will be taken after the
completion of the project. The project was scheduled to be completed
upto 17.9.2012 the request extension for completion of project shall be
made in due course of time. Details of Grant are given as under-:
Above balance of Rs. 226.34 lacs include T.D.S. recovered on interest
earned on Grant on receipt of the T.D.S. from the Department.
vii. During the year 2012-13 the Company received capitalgrant of Rs.
132.30 lacs from Govt, of India for setting up of R&D facilities for
trial production of SAM. Interest earned on capital grant received for
the SAM project has been credited to the grant account as per the terms
of the grant. SAM project is under progress and is yet to be
commissioned. Upto 31.03.2014 Expenditure of Rs.5.29 lacs and Rs.3.32
lacs have been incurred over and above the released expenditure of
Equipment and Human Resource Development, respectively, however,
necessary approvals on this part from Govt, of India will be taken
after the completion of the project. The project was scheduled to be
completed upto 26.04.2014 the letter of extension has been issued by
the department on 07.07.14 for six month. Details of Grant are given
as under-:
Above balance of Rs. 38.80 lacs include T.D.S. recovered on interest
earned on Grant on receipt of the T.D.S. from the Department.
viii. During the year 2012-13 the Company has received capital grant of
Rs. 513.13 lacs (PY Rs.NIL lacs) from Govt, of India for setting up of
R&D facilities for BOPV. Interest earned on capital grant received for
the BOPV project has been credited to the grant account as per the
terms of the grant. BOPV
project is under progress and is yet to be commissioned. Upto
31.03.2014 Expenditure of Rs.5.10 lacs, Rs.17.12 lacs and Rs.37.19 lacs
have been incurred over and above the released expenditure of
Accessories, Human Resource Development and Consumables, respectively;
however, necessary approvals on this part from Govt, of India will be
taken after the completion of the project. The project was scheduled to
be completed upto .02.07.2013 therequest extension for completion of
project shall be made in due course of time. Details of Grant are given
as under-:
Above balance of Rs 77.82.lacs include T.D.S. recovered on interest
earned on Grant on receipt of the T.D.S. from the Department.
o) An amount of Rs. 71.49 lacs has been shown as Advance Tax/TDS for
the financial years 2005-06 to 2013-14 relevant to assessment years
2006-07 to 2014-2015. The assessments stand completed up to the
financial year 2010-11 relevant to assessment year 2011-12. However, a
sum of Rs. 71.49 lacs still stand in the books of account for the
financial years 2005-06 to 2009-10. In the absence of required
information & documents, the effect on Balance Sheet cannot be
ascertained.
p) On 20 January, 2014, the company was sanctioned working capital loan
of Rs. 70.00 crores and foreign letter of credit limit of Rs.80.00
crores by Canara Bank, Green Park Extn., and New Delhi. The working
capital loan has been sanctioned at interest rate of 13.95% p.a. (base
rate 10.20% 3.75%) (secured by way of first pari-passu charge on all
fixed assets, both present and future (excluding land & Building and
Vehicles), stocks and book debts, whether now lying loose or in cases
or which are not lying or stores in or whether in course of transit.
q) Diminution in the value of below detailed assets has been provided:-
Capital Work in Progress - The Administrative-cum-housing complex has
been shown under the head Capital Work In Progress. The work has been
suspended and has been kept in abeyance. The impairment in the value
has been determined on the basis of valuation done by certified valuer
as on 31.03.2006 and accounted for accordingly. The further impairment
is to be determined.
r) In terms of AS 28, the company is in the process of forming a
committee to look into the further impairment of the fixed assets.
s) The company is in process to forming a policy in regard to
identifying of slow/non moving/obsolete items. Necessary entries will
be made of the time of the identification.
t) The company has adopted RBI Reference Rates of breign exchange as on
31.03.2014 for the valuation of the imported raw material and packing
material as well as gain/ loss on account of exchange rate variation.
u) Company had made the provision towards the Liquidated damages of
Rs.1,01,81,411/- and Rs. 1,49,13,471/- (Total Rs.2,50,94,882/-) in the
financial year 2007-2008 and 2012-2013, respectively. These liquidated
damages were provisioned as bad & doubtful debts and liquidated damages
in the year of provisioning for amounts receivable against sales to
Ministry of Health & Family Welfare, Govt, of India.
Ministry of Health & Family Welfare is not making the payment of
liquidated damages despite best efforts. The company has decided to
write off the bad debts of Rs. 358.42 lacs (including provision made
towards LD) in the books and claimed as allowable expenditure for the
purpose of income tax.
v) Previous year''s figures have been
re-named/re-classified/regrouped/re-arranged wherever considered
necessary to make them comparable.
COMMENTS OF THE COMPTROLLER AND AUDITOR GENERAL OF INDIA UNDER SECTION
619(4) OF THE COMPANIES ACT, 1956 ON THE ACCOUNTS OF BHARAT
IMMUNOLOGICALS AND BIOLOGICLAS CORPORATION LIMITED FOR THE YEAR ENDED
31 ST MARCH 2014.
The preparation of financial statements of Bharat Immunologicals and
Biologicals Corporation Limited for the year ended 31st March 2014 in
accordance with the financial reporting frame work prescribed under the
Companies Act, 1956 is the responsibility of the management of the
company. The statutory Auditors appointed by the Comptroller and
Auditor General of India under section 619(2) of the Companies Act,
1956 are responsible for expressing opinion on these financial
statements under section 227 of the Companies Act, 1956 based on the
independent audit in accordance with the Standards on Auditing
prescribed by their professional body the Institute of Chartered
Accountants of India. This is stated to have been done by them vide
their Audit Report dated 27.10.2014.
I, on behalf of the Comptroller and Auditor General of India, have
conducted a supplementary audit under section 619(3)(b) of the
Companies Act, 1956 of the financial statements of Bharat
Immunologicals and Biologicals Corporation Limited for the year ended
31 March 2014. This supplementary audit has been carried out
independently without access to the working papers of the statutory
auditors and is limited primarily to inquiries of the statutory
auditors and company personnel and a selective examiniation of some of
the accounting records.
Based on my supplementary audit, nothing significanthas come to my
knowledge which would give rise to any comment upon or supplement to
Statutory Auditor''s report under Section 619(4) of the Companies Act,
1956.
Mar 31, 2013
A) Estimated amount of contract remaining to be executed on
capital/revenue account and not provided for (excluding capital
commitment relating to various grants) - 958.58 (PY Nil).
b) Contingent Liabilities (excluding cases pending before authorities
of income tax and sales tax etc):- Claim against the company not
acknowledged as debts are Rs.675.38 lacs (PY Rs. 780.20 lacs) which
includes:-
i. Land Cases:- Liability for the land compensation cases pending the
outcome of appeal before Hon''ble High Court, Allahabad. However,
decision of District Court, Bulandshahr was against the company and the
figures have been computed on the basis of District Court order:
Rs.558.62 lacs including interest (PY. Rs. 544.16 lacs including
interest).
ii. Administrative-cum-Housing Complex:- Case is filed by M/s. Uppal
Engineering Co. Pvt. Ltd. against civil work awarded for
Administrative-cum-Housing Complex before Arbitrator. Arbitrator
decided in favor of appellant. Company has filed an appeal before the
competent court against Arbitration award figures have been computed on
the basis of award Rs 67.93 lacs including interest (PY. Rs. 61.74 lacs
including interest)
iii. Staff Litigations:- Litigation is pending in the cases filed
againstthe company by the then staff i.e. Mr. Bhaskar Gupta & (Col.) V.
K. Sethi for the subsistence allowance & salary respectively: Rs.30.83
lacs in total (PY Rs. 9.87 lacs in total)
c) In the opinion of the Board of Directors, Current Assets, Loans and
Advances shall have valued on realization, in the ordinary course of
the businessat least equal to the amount at which they are sta ted in
the Balance Sheet.
d) Request for confirmation of balances of Trade Receivables and Trade
Payables were sent. Confirmation of balances received from few cases.
These confirmations are subject to reconciliation and consequential
adjustment which in the opinion of management is not material.
e) In previous financial year 2011-12 accounting policy IV (a) reads as
"lower of cost or net realizable value by applying FIFO method i.e. the
net realizable value or other similar valuation, dominated in foreign
currency and exchange fluctuation be considered as per the value of
foreign currency on the balance sheet date, against which the payment
liability is outstanding which is changed in this year to read Raw
Material and other supplies used in production are valued at Lower of
cost or net realizable value by applying FIFO method, this change in
the accounting policy has affected an increase in the value of closing
stock by Rs. 8.24 lakh and consequently the profit has increased in the
statement of profit & loss by the same amount i.e. Rs. 8.24 lakh P. Y.
(36.08 lakh).
f) Any gains or loss arising on account of exchange difference either
on settlement or on translation is accounted for in the Statement of
Profit & Loss, In this regard during the year, company has booked net
exchange gain of Rs. 35.59 lacs. (PY Rs.46.41 lacs)
g) Disclosure as per Accounting Standard 15 (Accounting for Retirement
benefit in the Financial Statements of Employer) is as under: -
The Accruing liability according to the actuarial valuation for the
Leave Encashment is Rs.227.61 lacs (PY Rs. 177.23 lacs) & Half pay
leave is Rs.23.28 lacs (PY Rs. 18.21 lacs). Leave Travel Concession:
a. Rs.3.35 lacs has been paid as LTC (All India) claimed (Previous
Year Rs. 0.55 lacs).
b. Rs.0.30 lacs has been paid as LTC (Home Town) cl aimed (Previous
Year Rs. 0.26 lacs).
Gratuity: Yearly payment is made to LIC to maintain the Gratuity
Account of the Employees with
Life Insurance Corporation of India. BIBCOL has no Gratuity Trust so
the Actuarial Valuation has not been made
h) In compliance of Accounting Standard 17 (AS-17) on "Segment
Reporting" as notified under Companies Accounting Standard Rules, 2006,
the company has adopted following business segment as the reportable
segments:
i) Oral Polio Vaccine
ii) Zinc Tablets
There are no geographical segments.
The disclosures of segment wise information is given as per Annexure-A.
j) Deferred Tax:
In compliance of Accounting Standard 22 on "Accounting for taxes on
Income" as notified under Companies Accounting Standard Rules, 2006,
the company has provided accumulated net deferred tax assets in respect
of timing difference as on 31st March, 2013 amounting to Rs. 474.63
lacs (Previous year Rs. 660.42 lacs). Net deferred tax expenses for the
year of Rs. 185.79 lacs (Previous Year deferred tax income Rs. 660.42
lacs) has been charged to Profit & Loss account. The item-wise details
of deferred tax liability and assets are as under.
k) Provision for current year''s Income Tax as well as Minimum
Alternative Tax (MAT) u/s 115 JB of Inc ome Tax Act, 1961 has been made
for want of taxable/book profit.
l) The company has initiated the process of identifying the parties and
obtaining information with respect to parties, if any, covered under
the Micro, Small and Medium Enterprises Development Act, 2006 (or the
"Act"). The Company would account for significant interest obligations
subsequently, if any. Accordin gly required disclosures in this regard
have not been given in the current year
m) Governments Grants
i. Capital Grant for Rs. 311 Lakhs (Rupees Three Hundred & Eleven
Lakhs) was sanctioned by
Government of India during the year 2006-2007 for setting up
manufacturing facilities and infrastructure improvement for manufacture
of production of Zinc dispersible Tablets. Interest earned on the grant
received for manufacturing facilities and infrastructure improvement
for manufacturing of production of Zinc dispersible Tablets has been
credited to the Grant account as per terms of Grant.
Above balance of Rs. 18.67 lacs does not include T.D.S. recoverable for
Rs. 1.35 lacs on interest earned on Grant. The same shall be included
as and when it is received from Income Tax Department.
ii. For the advancement of manufacturing facilities and infrastructure
improvement for manufacture of production of Zinc dispersible tablets.
A further Capital Grant for Rs. 137.04 lakhs is sanctioned by
Government of India, out of which Rs 74.86 Lakhs received in 2009-2010,
Rs 26.60 lakhs received in 2010-11 and Rs 35.58 lakhs received in
2011-12. Interest earned on the grant received for the advancement of
manufacturing facilities and infrastructure improvement for manufacture
of production of Zinc dispersible ablets has been credited to the grant
account as per the terms of the grant. Details are provided as under:
Above Negative balance of Rs. 0.42 lacs does not include T.D.S.
recoverable for Rs. 0.71 lacs on interest earned on Grant. The same
shall be included as and when it is received from Income Tax
Department.
iii. Company has received capital grant of Rs. 58.72 lacs (FY. 2010-11)
and Rs.43.00 lacs (FY 2011-12) from Govt. of India for setting up of
R&Dfacilities for trial production of Iron Folic Acid Dispersible
tablets. Interest earned on capital gant received for the Iron Folic
Acid project has been credited to the grant account as per the termsof
the grant. Iron Folic Acid project is under progress and is yet to be
commissioned. Details of Grant are given as under-:
iv. Company has received capital grant from Govt. of India for setting
up of R&D facilities for formulation development of Micronutrient -
Vitamin mix tablets amounting to Rs.97.21 lacs (F.Y. 2010-11) and Rs.
40.63 lacs (2011-12). Interest earned on capital grant received for
the Micronutrient - Vitamin mix project has been credited to the grant
account as per the terms of the grant. Micronutrient - Vitamin mix
project is under progress and is yet to be commissioned. Details of
Grant are given as under-:
v. Company has received capital/revenue grant of Rs. 476.35 lacs (F.Y.
2010-11) from Govt. of India for setting up of manufacturing and
infrastructure facility Up gradation for process Optimization and
Quality Improvement of Oral Polio Vaccine Formulation Facility.
Interest earned on capital grant received for the infrastructure
facility Up gradation for process Optimization and Quality Improvement
of Oral Polio Vaccine Formulation Facility has been credited to the
grant account as per the terms of the grant. Infrastructure facility up
gradation for process Optimization and Quality Improvement of Oral
Polio Vaccine Formulation Facility project is under progress and is yet
to be commissioned.
i. During the year 2010-11 the Company has received capital grant of Rs
337.87 lacs from Govt. of India for setting up of pilot plant for
Diarrhea Management Kit. Interest earned on capital grant received for
the Diarrhea Management Kit has been credited to the grant account as
per the terms of the grant. Diarrhea Management Kit is under progress
and is yet to be commissioned of the grant. Details of Grant are given
as under-:
Above balance of Rs. 212.38 lacs does not include T.D.S. recoverable
for Rs. 2.38 lacs on interest earned on Grant. The same shall be
included as and when it is received from Income Tax Department.
vii. During the year the Company has received capital grant of Rs.
513.13 lacs (PY Rs.NIL lacs) from Govt. of India for setting up of R&D
facilities for BOPV. Interest earned on capital grant received for the
BOPV project has been credited to the grant account as per the terms of
the grant. BOPV project is under progress and is yet to be
commissioned. Details of Grant are given as under-:
Above balance of Rs 113.49.lacs does not include T.D.S. recoverable for
Rs. 0.82 lacs on interest earned on Grant. The same shall be included
as and when it is received from Income Tax Department.
viii. During the year the Company has received capital grant of Rs.
132.30 lacs (PY Rs.NIL lacs) from Govt. of India for setting up of R&D
facilities for trial production of SAM. Interest earned on capital
grant received for the SAM project has been credited to the grant
account as per the terms of the grant. SAM project is under progress
and is yet to be commissioned. Details of Grant are given as under-:
Above balance of Rs. 95.18 lacs does not include TD.S. recoverable for
Rs 0.66 lacs on interest earned on Grant. The same shall be included as
and when it is received from Income Tax Department.
n) An amount of Rs. 93.67 lacs has been shown as Advance Tax/TDS for
the financial years 2005-06 to 2012-13 relevant to assessment years
2006-07 to 2013-2014. Out of which Rs. 9.29 lacs and 7.16 lacs relating
to assessment year 2012-13 and 2013-13 respectively. The assessments
stand completed up to the financial year 2010-11 relevant to assessment
year 2011-12. However, a sum of Rs. 77.21 lacs still stand in the books
of account for the financial years 2005-06 to 2011-12. In the absence
of required information & documents, the effect on Balance Sheet cannot
be ascertained.
o) On 22 January, 2013, the company was sanctioned working capital loan
of Rs. 48.00 crores and foreign letter of credit limit of Rs.51.00
crores by Canara Bank, Green Park Extn., New Delhi. The working capital
loan has been sanctioned at interest rate of 14.00% p.a. (base rate
10.25% 3.75%) (secured by way of first pari-passu charge on all fixed
assets, both present and future (excluding Vehicles), stocks and book
debts, whether now lying loose or in cases or which are not lying or
stores in or whether in course of transit.
p) Diminution in the value of below detailed assets has been provided:-
a. Administrative-cum-Housing complex: - The Administrative-cum-housing
complex has been shown under the head Capital Work In Progress. The
work has been suspended and has been kept in abeyance. The impairment
in the value has been determined on the basis of valuation done by
certified valuer as on 31.03.2006 and accounted for accordingly, there
is no significant variation in value as on 31.03.2013.
q) Previous year''s figures have been
re-named/re-classified/regrouped/re-arranged wherever considered
necessary to make them comparable.
Mar 31, 2010
1. Estimated amount of contract remaining to be executed on capital
account and not provided for-Nil (PY Nil).
2. Contingent Liabilities:-
Claim against the company riot acknowledged as debts are Rs.552.48 lacs
(PY Rs.518.75 lacs) which includes:-
a. Land Cases:- Liability for the land compensation cases pending the
outcome of appeal before honble High Court, Allahabad. However,
decision of District Court, Bulandshahr was against the company and the
figures have been computed on the basis of District Court order:
Rs.493.26 lacs including interest (PY.474.88 lacs including interest)
b. Administrative-cum-Housing Complex:- Case is filed by, M/s. Uppal
Engineering Co. Pvt. Ltd. against civil work awarded for
Administrative-cum-Housing Complex before Arbitrator. Arbitrator
decided in favor of appellant. Company has filed an appeal before the
competent court against Arbitration award figures have been computed on
the basis of award: Rs.49.35 lacs including interest (PY.43.16 lacs
including interest)
c. Staff Litigations:- Litigation is pending in the cases filled
against the company by the then staff i.e. Mr. Bhaskar Gupta & (Col.)
V. K. Sethi for the subsistence allowance & salary respectively:
Rs.9.87 lacs in total (PY 0.71 lacs in total)
d. Arrears on account of implementation of 6th Pay Commission: The
applicability Of Sixth pay commission have been partially implemented
with effect from 01.01.2006 by the board in its 110th meeting held on
08.04.2009. In the said meeting it has been unanimously resolved that
the amount of arrear for the period from 01/01/2006 to 31.03.2009 is
payable only when the company start earning profit which at present is
a loss making concern. Arrears for the period 01.01.2006 to 31.03.2009:
Rs, 190.77 lacs (PY Nil).
3. To make the compliance of resolution passed by Board of Directors
meeting held on 08.04.2009 and read with Note 2(d) above the provision
for Rs. 127.56 lacs, for salary arrears in the financial year 2008-09
is reversed.
4. In the opinion of the Board of Directors, Current Assets, Loans,
and Advances shall have valued on realization, in the ordinary course
of the business at least equal to the amount at which they are stated
in the Balance Sheet.
5. Loans and Advances includes Rs.l6,287/-(Previous year Rs. 18,536/-)
due from present & past Directors of the. Company. Maximum amount due
during the year Rs.1,18,925/- (Previous yearRs.2,17,735/-).
6. The remuneration paid/provided to the Managing Director is as
under:-
Note: 1. Licensed/Installed Capacity for indigenous production of OPV
is 100 million doses. 2. Installed capacity for blending and filling
operation is 600 million doses.
7. Balances in respect of loan and advances, debtors and creditors are
subject to confirmation and consequential effect of which is not
ascertainable at this stage.
8. No Provision for current years Income Tax as well as Minimum
Alternative Tax (MAT) u/s 115 JB of Ineome Tax Actr 1961 has been made
for want of taxable/ book profit.
9. No disclosure in accordance with AS-17 (Segment Reporting) issued
by ICAI and clause 41 of listing agreement is made.
10. There is no related party in term of AS-18 (Related Party
Disclosure) however Mr. S. Snbbiah, MD is the key management personnel
and his remuneration particulars are given under Note No.6. -
11. No assets discarded during the year.
12. The company has initiated the process of identifying the parties
and obtaining information with respect to parties, if any, covered
under the Micro, Small and Medium Enterprises Development Act, 2006 (or
the "Act"). The Company would account for significant interest
obligations subsequently, if any. Accordingly required disclosures in
this regard have not been given in the current year.
13. Disclosure as per Accounting Standard 15 (Accounting for Retirement
benefit in the Financial Statements of Employer) is as under:-
The Accruing liability according to the actuarial valuation for the
Leave Encashment is Rs. 1,36,36,051 (PY Rs.99,58,658 ) & Half pay leave
is Rs 13,48,621 (PY Rs.8,55,697/-).
14. Leave travel concession:
a. During the year neither LTC has been claimed nor provided for the
block period 2010-2013. For the block period 2006-2009 amount of
Rs.52,914/- has been paid as claimed (Previous Year Rs.24,808/-).
b. Rs.19850/- has been paid as LTC (Home Town) claimed (Previous Year
Rs.21,228/-).
15. Gratuity: Yearly payment is made to LIC to maintain the Gratuity
Account of the Employees with Life Insurance Corporation of India.
BIBCOL has no Gratuity Trust so the Actuarial Valuation has not been
made.
16. a) The Company has received capital grant of Rs.74.86 lacs (PY
Rs.311.00 lacs) from Govt, of India for setting up of manufacturing
facilities for production of Zinc dispersible tablets. Interest earned
on capital grant received for the Zinc Project and the sale proceeds of
Zinc tablet produced during the trial run have been credited to the
grant account as per the terms of the grant. Zinc project is under
progress and is yet to be commissioned. Details of Grant are given as
under-:
17. As the company has preferred appeals against Income Tax Assessment
Orders for the Assessment years 2004-05 and 2005-06, demands raised and
deposited with Income Tax Department have been considered as
recoverable and not charged to Profit & Loss account as the Company is
confident to get success in appeals.
18. During the year Capital Work - in Progress has been reduced by Rs.
43,40,735/- to rectify previous years overstated Work -in - Progress
and concerned vendors account.
19. Earning per share (EPS) -The numerators and denominators used to
calculate Basic and Diluted EPS are as under:
20 Deferred Tax:
In accordance with AS-22 issued by the ICAI, the carrying amount of
Deferred Tax (Net) have been reviewed and it is considered that amount
of Rs.5,22,11,867/- which have been created up to the last previous
year be reversed and no Deferred Tax (Net) be provided during the
current year because of uncertainty of sufficient future taxable
income.
21 Diminution in the value of below detailed assets has been provided:-
a. Administrative-cum-Housing complex: - The
Administrative-cum-housing complex has been shown under the head
Capital Work In Progress. The work has been kept in abeyance. The
impairment in the value has been determined on the basis of valuation
done by certified valuer as on 31.03.2006 and accounted for
accordingly, there is no significant variation in value as on
31.03.2010.
b. D.G.Set: - Power generating set of 1000 KVA (Diesel) has not been
capitalized, pending installation due to non-supply of alternator as
such it is not in the working condition. It is appearing under the
Capital Work in Progress. The value has been taken & considered as
per acquisition cost.
22 Previous years figures have been re-named/re-classified/regrouped
/re-arranged wherever considered necessary to make them comparable.
Mar 31, 2009
1. Contingent Liabilities not provided for-
Current Year Previous Year
(Rs. In lacs) (Rs. In lacs)
2008-09 2007-08
(i) Claims against the company
not acknowledged as debt
(a) Land cases
Liability for the land
compensation cases pending 90.93
the outcome of appeal before
honble High Court, (Principal) (Principal)
Allahabad. However, decision
of District Court, 383.95 365.58
Bulandshahr was against the
company and the (Interest) (Interest)
figures have been computed on
the basis of
District Court order.
(b) Housing Complex case
Filed by M/s. Uppal
Engineering Co. Pvt. Ltd. 163.32 163.32
against civil work awarded
for Administrative- Plus interest Plus interest
cum-Housing Complex before
Arbitrator. Arbitrator decided
in favour of appellant.
Company has filed an appeal
before the competent
court against Arbitration award.
(c) Demand of Sales Tax 2.17 2.17
For financial year 2000-01.
Matter pending in
appeal before Tribunal,
Commercial Tax,
Ghaziabad, U.P.
(ii) Capital Commitments-: NIL NIL
Estimated amount of contracts
(net of advances)
to be executed on capital
account and not provided
for.
2.In the opinion of the Board of Directors, Current Assets, Loans and
Advances shall have a value on realization, in the ordinary course of
the business at least equal to the amount at which they are stated in
the Balance Sheet.
3. Loans and Advances includes Rs.l8,536/-(Previous year Rs. 16,190/-)
due from present & past Directors of the Company. Maximum amount due
during the year Rs.2,17,735/- (Previous year Rs.6,45,890/-).
4. Balances in respect of loan and advances, debtors and creditors are
subject to confirmation.
5. No Provision for current Income Tax as well as Minimum Alternative
Tax (MAT) u/s 115 JB of Income Tax Act, 1961 has been made for want of
taxable profits.
6. No disclosure in accordance with AS17 issued by ICAI and clause 41
of listing agreement is made as company being a single product and
single unit company.
7. There is no related party in terms of AS 18 issued by ICAI.
However, Sh. S. Subbiah, M.D., is the key management personnel and his
remuneration particulars are given under Note No. 4(b).
8. Discarded assets have been eliminated from the books of accounts
in compliance of AS 10 issued by the ICAI.
9. The company has initiated the process of identifying the parties
and is in the process of obtaining information with respect to parties
covered, if any, under the Micro, Small and Medium Enterprises
Development Act, 2006 (or the "Act"). The Company would account for
significant interest obligations in this regard, if any, subsequently.
Accordingly required disclosures in this regard have not been given, in
the current year.
10. During the year additional provision on account of leave
encashment has been made for an amount of Rs.10 lakhs on ad-hoc basis.
No additional provision has been made for half pay leave during the
year.
Leave travel concession:
All India (LTC) is being encashed during the block 2006 to 2009 and was
paid in the respective Financial year. In the year 2008-2009 Rs
24,808/- has been paid.
LTC (Home Town) is being paid as per actual entitlement subject to
amount claimed. In the year 2008-2009 the amount claimed is Rs 21,228/-
which have been paid.
Gratuity:
Yearly payment is made to LIC to maintain the Gratuity Account of the
Employees. B1BCOL has no Gratuity Trust so the Actuarial Valuation has
not been made.
11. a) The Company has received capital grant of Rs. 311.00 lacs from
Govt, of India for setting up of manufacturing facilities for
production of Zinc dispersiblc tablets. Interest earned on capital
grant received for the Zinc Project and the sale proceeds of Zinc
tablet produced during the trial run have been credited to the grant
account as per the terms of the grant. Zinc project is under progress
and is yet to be commissioned. Details of Grant are given as under-:
Amount received 3,11,00,000
Add: Interest 25,61,233
Add: Sale (Zinc Tablets) 2,56,036
Less: Utilization 2,98,09,305
Balance as on 31.03.09 41,07,964
An expenditure of Rs. 24,59,161/- has been incurred on technology
transfer fee over and above allocated sanctioned grant of Rs.
1,15,00,000/- (out of composite grant of Rs.3,11,00,000), the same has
not been accounted for as expenditure of the company as it is envisaged
that company may get reimbursement from Deptt. of Biotechnology.
b) The Company had received revenue grant of Rs.4,50,000 from
Department of Science and Technology (Govt of India) for Papaya Ring
Spot Virus (PRSV) project. Expenditure of Rs 3,96,823/- had been
incurred against the grant up to 31.03.2009. Balance unutilized amount
of grant, Rs 53,177/- has been shown under current liabilities.
14. As the company has preferred appeal against Assessment Orders for
the Assessment year 2004-05 and 2005-06, demands raised and deposited
with Income Tax Department have been considered as recoverable and not
charged to Profit & Loss account as expenditure as the Company is
confident to succeed in appeal. Accordingly brought forwarded losses
have been considered as deferred tax assets as depicted under note No.
16.
17. Diminution/impairment in the value of below detailed assets has
been provided:-
1. Housing complex: - The complex has been shown under the head
Capital Work In Progress. The work has been kept in abeyance. The
impairment in the value has been determined on the basis of valuation
done by certified valuer as on 31.03.2006 and accounted for accordingly
as there is no significant variation in value as on 31.03.2009.
2. DO.Set: - Diesel generating set of 1000 KVA remained unutilized in
want of alternator and installation. The item is appearing under the
head Capital Work in Progress. The valuation has been done internally
and accounted for accordingly.
18. Previous years figures have been re-named/re-classified/
regrouped/re-arranged wherever considered necessary to make them
comparable.
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